Vol. 85 Tuesday, No. 246 December 22, 2020

Pages 83405–83738

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 85, No. 246

Tuesday, December 22, 2020

Agency for Healthcare Research and Quality NOTICES NOTICES Agency Information Collection Activities; Proposals, Requests for Nominations: Submissions, and Approvals: Members of the U.S. Preventive Services Task Force, Reporting Process for Complaint of Employment 83584–83585 Discrimination Used by Permanent Employees and Applicants for Employment at DOC and Complaint of Agricultural Marketing Service Employment Discrimination for the Decennial NOTICES Census, 83513–83514 Meetings: Plant Variety Protection Board, 83510 Community Living Administration Agriculture Department NOTICES See Agricultural Marketing Service Agency Information Collection Activities; Proposals, See Rural Housing Service Submissions, and Approvals: Title III Supplemental Form to Financial Status Report, Antitrust Division 83587 NOTICES Changes Under the National Cooperative Research and Comptroller of the Currency Production Act: RULES CHEDE–8, 83613 Activities and Operations of National Banks and Federal IMS Global Learning Consortium, Inc., 83613 Savings Associations, 83686–83737 Bureau of Consumer Financial Protection RULES Defense Department Home Mortgage Disclosure (Regulation C) Adjustment to NOTICES Asset-Size Exemption Threshold, 83409–83411 Arms Sales, 83524–83530 Truth in Lending Act (Regulation Z) Adjustment to Asset- Size Exemption Threshold, 83411–83415 Drug Enforcement Administration Census Bureau NOTICES NOTICES Importer of Controlled Substances Application: Agency Information Collection Activities; Proposals, Fresenius Kabi USA, LLC, 83613–83614 Submissions, and Approvals: Organic Standards Solutions International, LLC, 83614– Longitudinal Employer-Household Dynamics, 83513 83615 School District Review Program, 83511–83513 Yourway Transport, 83614

Children and Families Administration Education Department NOTICES Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Annual Statistical Report on Children in Foster Homes Submissions, and Approvals: and Children in Families Receiving Payment in National Blue Ribbon Schools Program, 83530–83531 Excess of the Poverty Income Level From a State National Public Education Financial Survey 2019–2021: Program, 83585–83586 Common Core of Data, 83538–83539 National and Tribal Evaluation of the 2nd Generation of Applications for New Awards: the Health Profession Opportunity Grants, 83586 Educational Technology, Media, and Materials for Individuals with Disabilities Program; Stepping-Up Coast Guard Technology Implementation, 83531–83538 RULES Safety Zone: Employment and Training Administration Pipeline Testing; Tampa Bay, Gibsonton, FL, 83448– NOTICES 83450 Trade Adjustment Assistance; Determinations, 83615–83621 NOTICES Worker Adjustment Assistance; Investigations, 83621– Removal of Conditions of Entry on Vessels Arriving: 83623 Republic of Liberia, 83588–83589

Commerce Department Energy Department See Census Bureau See Federal Energy Regulatory Commission See Foreign-Trade Zones Board NOTICES See Industry and Security Bureau Meetings: See International Trade Administration Environmental Management Site-Specific Advisory See National Oceanic and Atmospheric Administration Board, Northern New Mexico, 83539–83540

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Environmental Protection Agency Federal Railroad Administration PROPOSED RULES PROPOSED RULES Hazardous and Solid Waste Management System: Fatigue Risk Management Programs for Certain Passenger Disposal of Coal Combustion Residuals From Electric and Freight Railroads, 83484–83509 Utilities; Reconsideration of Beneficial Use Criteria and Piles, 83478–83484 Federal Register Office NOTICES NOTICES Approval of Florida’s Clean Water Act Section 404 Publication Procedures for Federal Register Documents Assumption Request, 83553–83554 During a Funding Hiatus, 83623–83624 Guidance: Perfluoroalkyl and Polyfluoroalkyl Substances Federal Reserve System Destruction and Disposal, 83554 NOTICES Agency Information Collection Activities; Proposals, Federal Aviation Administration Submissions, and Approvals, 83555–83556 RULES Change in Bank Control: Special Conditions: Acquisitions of Shares of a Bank or Bank Holding Garmin International, Inc., Bell Textron Canada Limited Company, 83557, 83582 Model 505 Helicopter, Visual Flight Rules Autopilot Guidance: and Stability Augmentation System, 83415–83416 Resolution Plan Submissions of Certain Foreign-Based NOTICES Covered Companies, 83557–83582 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Financial Crimes Enforcement Network Aircraft Noise Certification Documents for International NOTICES Operations, 83675–83676 Agency Information Collection Activities; Proposals, Noise Certification Standards for Subsonic Jet Airplanes Submissions, and Approvals: and Subsonic Transport Category Large Airplanes, Renewal Without Change of Anti-Money Laundering 83671–83672 Program Requirements for Casinos, 83676–83681 COVID–19 Related Relief Concerning Operations at Chicago O’Hare International Airport, John F. Kennedy Fish and Wildlife Service International Airport, Los Angeles International NOTICES Airport, etc., 83672–83675 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Deposit Insurance Corporation Alaska Guide Service Evaluation, 83604–83606 NOTICES Land-Based Wind Energy Guidelines, 83607–83609 Guidance: Endangered and Threatened Species: Resolution Plan Submissions of Certain Foreign-Based Draft Recovery Plan for the Ozark Hellbender, 83609– Covered Companies, 83557–83582 83610 Termination of Receivership, 83554–83555 Incidental Take Permit Application for the California Condor; Availability of Draft Conservation Plan and Federal Emergency Management Agency Draft Environmental Assessment; Manzana Wind NOTICES Power Project, Kern County, California, 83603–83604 Changes in Flood Hazard Determinations, 83589–83597 Recovery Permit Applications, 83606–83607 Proposed Flood Hazard Determinations, 83591–83592 Foreign-Trade Zones Board Federal Energy Regulatory Commission NOTICES NOTICES Approval of Subzone Status: Application: MANE USA, Wayne and Parsippany, NJ, 83515 FirstLight MA Hydro LLC, 83542–83544 Reorganization under Alternative Site Framework: Great River Hydro, LLC, 83540–83541, 83546–83547, Foreign-Trade Zone 208, New London, CT, 83514–83515 83550–83551 Northfield Mountain, LLC, 83544–83545 General Services Administration PacifiCorp and Klamath River Renewal Corp., 83551– NOTICES 83552 Agency Information Collection Activities; Proposals, Stingray Pipeline Co., LLC; Amendment, 83548–83550 Submissions, and Approvals: Combined Filings, 83545–83548 Information Specific to a Contract or Contracting Action Filing: (Not Required by Regulation), 83583–83584 Lankford, Kelly, 83548 Environmental Impact Statements; Availability, etc.: Initial Market-Based Rate Filings Including Requests for Proposed Master Plan for the Food and Drug Blanket Section 204 Authorizations: Administration Muirkirk Road Campus (Prince Centerfield Cooper Solar, LLC, 83545 George’s County, Laurel, MD), 83582–83583 PGR Lessee O, LLC, 83541 Meetings: Health and Human Services Department Eastern Gas Transmission and Storage, Inc.; Technical See Agency for Healthcare Research and Quality Conference, 83550 See Children and Families Administration Request Under Blanket Authorization: See Community Living Administration Adelphia Gateway, LLC, 83541–83542 See Health Resources and Services Administration Columbia Gas Transmission, LLC, 83552–83553 See National Institutes of Health

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Health Resources and Services Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals, 83624–83625 Advisory Committee on Infant Mortality, 83587–83588 National Credit Union Administration Homeland Security Department RULES See Coast Guard Temporary Regulatory Relief in Response to COVID–19; See Federal Emergency Management Agency Extension, 83405–83409 See U.S. Customs and Border Protection NOTICES NOTICES Agreement Between the Government of the United States of Agency Information Collection Activities; Proposals, America and the Government of the Republic of El Submissions, and Approvals, 83625 Salvador for Cooperation in the Examination of Agency Information Collection Activities; Proposals, Protection Claims, 83597–83603 Submissions, and Approvals: Fair Credit Reporting Disclosure and Recordkeeping Housing and Urban Development Department Requirements, 83625–83626 RULES Section 542(c) Housing Finance Agency Risk Sharing National Institutes of Health Program, 83435–83446 NOTICES NOTICES Meetings: Agency Information Collection Activities; Proposals, Fogarty International Center Advisory Board, 83588 Submissions, and Approvals: Quality Control Requirements for Direct Endorsement Lenders, 83603 National Oceanic and Atmospheric Administration RULES Industry and Security Bureau Fisheries of the Exclusive Economic Zone Off Alaska: RULES Inseason Adjustment to the 2021 Bering Sea and Aleutian Addition, Revision and Removal of Entities From the Entity Islands Pollock, Atka Mackerel, and Pacific Cod List, 83416–83432 Total Allowable Catch Amounts, 83473–83477 Takes of Marine Mammals Incidental to Specified Interior Department Activities: See Fish and Wildlife Service Ice Roads and Ice Trails Construction and Maintenance Activities on Alaska’s North Slope, 83451–83473 Internal Revenue Service NOTICES RULES Agency Information Collection Activities; Proposals, Misdirected Direct Deposit Refunds, 83446–83448 Submissions, and Approvals: Alaska License Limitation Program for Groundfish, Crab, International Trade Administration and Scallops, 83518 NOTICES Greater Atlantic Region Logbook Family of Forms, 83519 Antidumping or Countervailing Duty Investigations, Orders, Non-Commercial Permit and Reporting Requirements in or Reviews: the Main Hawaiian Islands Bottomfish Fishery, Polyethylene Retail Carrier Bags From Malaysia, 83515– 83522 83517 Weather Modification Activities Reports, 83523–83524 West Coast Region Groundfish Trawl Fishery Monitoring International Trade Commission and Catch Accounting Program, 83517–83518 NOTICES Endangered and Threatened Species: Investigations; Determinations, Modifications, and Rulings, Take of Anadromous Fish, 83519–83520 etc.: Endangered Species: Certain Botulinum Toxin Products, Processes for File No. 23861, 83522–83523 Manufacturing or Relating to Same and Certain Takes of Marine Mammals Incidental to Specified Products Containing Same, 83610–83611 Activities: Twist Ties From China, 83611–83613 Erickson Residence Marine Access Project in Juneau, AK, 83520–83521 Justice Department See Antitrust Division See Drug Enforcement Administration National Science Foundation See United States Marshals Service NOTICES Agency Information Collection Activities; Proposals, Labor Department Submissions, and Approvals: See Employment and Training Administration Honor Awards, 83626–83627 NOTICES Request for Information: Agency Information Collection Activities; Proposals, Potential Concepts and Approaches for a National Submissions, and Approvals: Strategic Computing Reserve, 83627–83628 Disaster Unemployment Assistance Activities Report, 83623 National Transportation Safety Board National Archives and Records Administration NOTICES See Federal Register Office Meetings; Sunshine Act, 83628–83629

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Nuclear Regulatory Commission Transportation Department NOTICES See Federal Aviation Administration Order: See Federal Railroad Administration ConverDyn; Suspending Exports of Certain Source Material, 83629–83630 Treasury Department Pension Benefit Guaranty Corporation See Comptroller of the Currency NOTICES See Financial Crimes Enforcement Network Agency Information Collection Activities; Proposals, See Internal Revenue Service Submissions, and Approvals: Payment of Premiums, 83630–83631 U.S. Customs and Border Protection RULES Personnel Management Office Temporary Travel Restrictions: NOTICES Applicable to Land Ports of Entry and Ferries Service Meetings: Between the United States and Canada, 83432–83433 President’s Commission on White House Fellowships Applicable to Land Ports of Entry and Ferries Service Advisory Committee, 83631 Between the United States and Mexico, 83433–83434 Postal Regulatory Commission NOTICES United States Marshals Service New Postal Products, 83631–83632 NOTICES Agency Information Collection Activities; Proposals, Postal Service Submissions, and Approvals: RULES Vulnerability Assessment Request, 83615 International Mailing Services: Mailing Services Product and Price Changes, 83450 Veterans Affairs Department New Mailing Standards for Domestic Mailing Services NOTICES Products, 83450–83451 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Railroad Retirement Board Statement of Person Claiming To Have Stood in Relation NOTICES of Parent, 83681 Privacy Act; Matching Program, 83632–83633 Survey of Individuals Using Their Entitlement to Rural Housing Service Educational Assistance Under the Educational NOTICES Assistance Programs, 83682 Agency Information Collection Activities; Proposals, Requests for Nominations: Submissions, and Approvals, 83510–83511 Advisory Committee on Rehabilitation, 83682–83683 Securities and Exchange Commission NOTICES Separate Parts In This Issue Order: Approving Public Company Accounting Oversight Board Budget and Annual Accounting Support Fee for Part II Calendar Year 2021, 83642–83643 Treasury Department, Comptroller of the Currency, 83686– Temporary Exemptive Relief; National Market System 83737 Plan Governing the Consolidated Audit Trail, 83634– 83637, 83667–83671 Self-Regulatory Organizations; Proposed Rule Changes: Reader Aids Cboe BZX Exchange, Inc., 83637–83662 NYSE Arca, Inc., 83665–83667 Consult the Reader Aids section at the end of this issue for The Options Clearing Corp., 83662–83664 phone numbers, online resources, finding aids, and notice of recently enacted public laws. State Department To subscribe to the Federal Register Table of Contents NOTICES electronic mailing list, go to https://public.govdelivery.com/ Culturally Significant Objects Imported for Exhibition: accounts/USGPOOFR/subscriber/new, enter your e-mail Fotoclubismo: Brazilian Modernist Photography, 1946– address, then follow the instructions to join, leave, or 1964, 83671 manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

12 CFR 4...... 83686 5...... 83686 7...... 83686 145...... 83686 160...... 83686 701...... 83405 1003...... 83409 1026...... 83411 14 CFR 27...... 83415 15 CFR 744...... 83416 19 CFR Ch. I (2 documents)...... 83432, 83433 24 CFR 266...... 83435 26 CFR 301...... 83446 33 CFR 165...... 83448 39 CFR 20...... 83450 111...... 83450 40 CFR Proposed Rules: 257...... 83478 49 CFR Proposed Rules: 270...... 83484 271...... 83484 50 CFR 217...... 83451 679...... 83473

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Rules and Regulations Federal Register Vol. 85, No. 246

Tuesday, December 22, 2020

This section of the FEDERAL REGISTER FOR FURTHER INFORMATION CONTACT: end.3 The economic impact of the contains regulatory documents having general Policy and Analysis: Victoria Nahrwold, COVID–19 pandemic may result in applicability and legal effect, most of which Office of Examination and Insurance, at additional stress on credit union are keyed to and codified in the Code of (703) 548–2633; Legal: Thomas Zells balance sheets, potentially requiring Federal Regulations, which is published under and Ariel Pereira, Staff Attorneys, Office robust liquidity management over the 50 titles pursuant to 44 U.S.C. 1510. of General Counsel, at (703) 518–6540; course of 2021. While recovery in The Code of Federal Regulations is sold by or by mail at: National Credit Union economic activity and labor markets is the Superintendent of Documents. Administration, 1775 Duke Street, widely expected to continue, there is a Alexandria, Virginia 22314. high risk of a worse-than-expected SUPPLEMENTARY INFORMATION: outcome. This will depend on the path NATIONAL CREDIT UNION of COVID–19 infections. As COVID–19 ADMINISTRATION I. Background II. Legal Authority cases rise, another wave of temporary business closures and other measures 12 CFR Part 701 III. Section-by-Section Analysis IV. Regulatory Procedures that hinder economic activity may RIN 3133–AF15 become necessary. As a result, the I. Background recovery could falter, leading to more Temporary Regulatory Relief in A. COVID–19 Pandemic job losses and higher unemployment. Response to COVID–19–Extension Weaker-than-expected economic The COVID–19 pandemic has created conditions or another downturn would AGENCY: National Credit Union uncertainty for FICUs and their keep interest rates low or cause them to Administration (NCUA). members. The Board continues to work decline, particularly at the long end of ACTION: Final rule and temporary final with Federal and state regulatory the yield curve, and pose more rule; extension. agencies, in addition to FICUs, to assist significant challenges for the credit FICUs in managing their operations and SUMMARY: The NCUA Board (Board) is union system. The NCUA, like credit to facilitate continued assistance to unions, needs to plan and prepare for a extending the effective date of its credit union members and communities temporary final rule, which modified range of economic outcomes that could impacted by the novel coronavirus. In affect credit union performance. This certain regulatory requirements to help April 2020, as part of these ongoing ensure that federally insured credit includes ensuring a regulatory efforts, the Board temporarily modified environment that provides FICUs with unions (FICUs) remain operational and certain regulatory requirements to help can properly conduct appropriate the flexibility necessary to cope with ensure that FICUs remain operational and address the range of potential liquidity management to address and liquid during the COVID–19 economic conditions caused by the COVID–19 impacts. pandemic.1 The Board concluded that COVID–19 pandemic. Specifically, the Due to the continuing impact of the the amendments would provide FICUs temporary final rule issued by the Board COVID–19 pandemic on FICUs and necessary additional flexibility in a in April 2020 temporarily raised the their members, the Board has manner consistent with the NCUA’s maximum aggregate amount of loan determined that it is necessary to extend responsibility to maintain the safety and participations that a FICU may purchase the effectiveness of these temporary soundness of the credit union system. from a single originating lender to the provisions. The economic impact of the The temporary amendments were to greater of $5,000,000 or 200 percent of COVID–19 pandemic remains uncertain remain in place through the end of the FICU’s net worth. The rule also and is forecasted to extend through calendar year 2020 unless the Board temporarily suspended limitations on 2021. As such, the temporary took action to extend their effectiveness. the eligible obligations that a Federal amendments will remain in place The economic environment is a key credit union (FCU) may purchase and through the end of calendar year 2021 determinant of credit union hold. In addition, given physical unless the Board finds conditions performance. After several years of solid distancing practices necessitated by warrant additional action to further growth, the economy entered a COVID–19, the rule also tolled the extend their effectiveness. recession at the start of 2020.2 Given the required timeframes for the occupancy potential depth of the recession, B. The Temporary Amendments or disposition of properties not being forecasters do not expect the economy used for FCU business or that have been In general, two of the temporary to return to its pre-recession, late 2019 abandoned. Unless extended, each of amendments expanded the authority of peak before the end of 2021. A these temporary modifications will FICUs to purchase loans and sustained, high level of unemployment expire on December 31, 2020. Due to the participations in loans, thereby could reduce loan demand, particularly continued impact of COVID–19, the enhancing FICUs’ ability to meet for non-mortgage consumer loans, and Board has decided it is necessary to liquidity needs. Specifically, the Board affect credit quality. System-wide extend the effective period of these temporarily raised the maximum delinquency rates, which remained low temporary modifications until December aggregate amount of loan participations through the second quarter, could begin 31, 2021. that a FICU may purchase from a single to rise as the forbearance programs put originating lender to the greater of DATES: This rule is effective December in place during the spring come to an $5,000,000 or 200 percent of the credit 22, 2020. The expiration date of the temporary final rule published on April 1 85 FR 22010 (Apr. 21, 2020). 3 See Title IV of the Coronavirus Aid, Relief, and 21, 2020 (85 FR 22010), is extended 2 See https://www.nber.org/news/business-cycle- Economic Security Act, Public Law 116–136, 134 through the close of December 31, 2021. dating-committee-announcement-june-8-2020. Stat 281 (March 27, 2020).

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union’s net worth. The Board also purchase from any single originating believe that the temporary increase is temporarily suspended certain lender. needed to strike the balance the Board limitations on the types of eligible The regulation limits the aggregate sought in originally promulgating the obligations that a FICU may purchase amount of loan participations that a rule in 2013; the Board encourages and hold. The third regulatory FICU may purchase from any one FICUs to engage in appropriate due amendment tolled the required originating lender to the greater of diligence in this context. As such, the timeframes for the occupancy or $5,000,000 or 100 percent of the FICU’s Board feels it necessary to extend this disposition of properties not being used net worth.9 As explained in the relief until the close of December 31, for FCU business or that have been preamble to the final rule that 2021 to continue to allow FICUs the abandoned to address the impact of the established the limitation, the purpose flexibility to conduct robust liquidity physical distancing practices of the provision is to mitigate the management to cope with the atypical necessitated by the COVID–19 exposure of FICUs to concentration economic conditions caused by the pandemic. risk.10 The preamble explained that, in COVID–19 pandemic. The Board prescribing concentration limits on loan believes that a one-year extension Section III of this preamble discusses participations, the Board’s goal was ‘‘to appropriately balances the the temporary regulatory amendments strike an appropriate balance between unpredictable length of the economic in greater detail and the rationale for the mitigating risk and fostering the [credit impact of the COVID–19 pandemic with extension of their temporary effect. union] industry’s growth and safety and soundness considerations. II. Legal Authority stability.’’ 11 In the April 2020 temporary final rule, Under the temporary final rule issued the Board noted that, subsequent to the The Board is issuing this temporary in April 2020, the aggregate limit below temporary rule’s expiration at the close final rule pursuant to its authority under which a waiver from the appropriate of December 31, 2020, a FICU must the Act.4 The Act grants the Board a NCUA Regional Director is not required return into compliance with the current broad mandate to issue regulations was temporarily raised to the greater of limitation (that is, the greater of governing both Federal credit unions $5,000,000 or 200 percent of a FICU’s $5,000,000 or 100 percent of its net and, more generally, all FICUs. For net worth. The increase was intended to worth) by either ceasing to purchase example, section 120 of the Act is a help safeguard the stability of FICUs loan participations from the originating general grant of regulatory authority and during the COVID–19 pandemic, lender or requesting a waiver as authorizes the Board to prescribe rules without undue additional risk to the provided in the regulation. With this and regulations for the administration of safety and soundness of the credit union extension of the expiration, a FICU now the Act.5 Section 209 of the Act is a system. The temporary increase was set must return into compliance with the plenary grant of regulatory authority to to expire at the close of December 31, current limitation or obtain a waiver at issue rules and regulations necessary or 2020. the close of December 31, 2021. appropriate for the Board to carry out its Due to the ongoing COVID–19 B. Purchase, Sale, and Pledge of Eligible role as share insurer for all FICUs.6 pandemic and its continued impact on Obligations (Section 701.23(b)) Other provisions of the Act confer FICUs, the Board believes it necessary to specific rulemaking authority to address extend the effective period of this Section 107(13) of the FCU Act prescribed issues or circumstances.7 temporary amendment until the close of authorizes an FCU, ‘‘in accordance with Accordingly, the Act grants the Board December 31, 2021. As noted in the rules and regulations prescribed by the broad rulemaking authority to ensure April 2020 temporary final rule, the Board,’’ to purchase, sell, or pledge all that the credit union industry and the Board continues to believe that a cap is or part of an eligible obligation to one NCUSIF remain safe and sound. an important protection against FICU of its own members.12 The NCUA has insolvency. However, the Board also implemented this authority in its III. Section-by-Section Analysis continues to believe that, as currently regulations at § 701.23(b)(1)(i) and A. Aggregate Limit on Loan formulated in § 701.22(b)(5)(ii), the (b)(2)(i), which provide that an FCU Participation Purchases (Section limitation may be overly prescriptive may purchase an eligible obligation 701.22(b)(5)(ii)) during this time. Additional regulatory from any source, provided the FCU is flexibility continues to be especially empowered to grant the loan or the loan Section 107(5)(E) of the FCU Act warranted to deal with the economic is refinanced within 60 days following authorizes an FCU to engage in impact of the COVID–19 pandemic, its purchase so that it is a loan the FCU participation lending with other credit which may result in additional stress on is empowered to grant. unions, credit union organizations, or credit union balance sheets, potentially The purpose of the refinancing financial organizations in accordance requiring robust liquidity management. requirement is to help ensure that loans with written policies of the FCU’s board When the Board issued the temporary purchased by an FCU comply with the of directors.8 The NCUA has increase in April, it emphasized its statutory and regulatory requirements implemented this statutory provision in belief that this amendment would help applicable to loans made by the FCU. § 701.22 of its regulations, which safeguard the stability of FICUs during Although the Board’s longstanding applies to all FICUs. The statute the COVID–19 pandemic, without policy has been that all eligible contains no limitation on the amount of undue additional risk to the safety and obligations of an FCU, whether made or participations that an FCU may soundness of the credit union system. purchased, comply with the The Board maintains this belief and requirements and goals of the FCU Act, 4 12 U.S.C. 1751 et seq. expects that the impact of the COVID– the explicit statutory language of the 5 12 U.S.C. 1766(a). 19 pandemic will warrant an increased FCU Act does not necessarily compel 6 12 U.S.C. 1789. cap until the close of December 31, this. As explained in the April 2020 7 An example of a provision of the Act that 2021. The Board also continues to temporary final rule, the Board believes provides the Board with specific rulemaking that, given the impact of the COVID–19 authority is section 207 (12 U.S.C. 1787), which is a specific grant of authority over share insurance 9 12 CFR 701.22(b)(5)(ii). pandemic, the balance weighs in favor coverage, conservatorships, and liquidations. 10 78 FR 37946 (June 25, 2013). 8 12 U.S.C. 1757(5)(e). 11 Id. at 37951. 12 12 U.S.C. 1757(13).

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of adopting a closer reading of the text regulations to authorize FCUs with regulation at 12 CFR 701.36. In general, of the statute and suspending the CAMEL composite ratings of 1, 2, or 3 an FCU may only invest in property that refinancing requirement for a temporary to purchase eligible obligations of FICUs it intends to use to transact credit union period to promote the extension of and liquidating credit unions business or in property that supports its credit and flow of liquidity in the credit irrespective of whether the obligation internal operations or serves its union system generally. belongs to the purchasing FCU’s members. Among other provisions, As noted, the FCU Act and § 701.23 members. This change did not alter the § 701.36: (1) Limits FCU investments in generally do not authorize an FCU to requirement for a purchasing FCU to be fixed assets; and (2) establishes purchase a loan unless the person liable well-capitalized under § 701.22(b)(2).16 occupancy, planning, and disposal on the loan is a member of that credit This temporary amendment was set to requirements for acquired and union. The Board’s publicly articulated expire at the close of December 31, abandoned premises. interpretation since the 1979 2020. Due to the ongoing and The regulation provides that if an rulemaking that implemented section unforeseeable impact of the COVID–19 FCU acquires premises, including 107(13) is that Congress did not intend pandemic, the Board believes it unimproved land or unimproved real section 107(13) to be an express appropriate to extend these temporary property, it must partially occupy them prohibition on purchases of obligations provisions until the close of December ‘‘no later than six years after the date of made to non-members provided they are 31, 2021. The Board recognizes that the acquisition,’’ subject to the NCUA authorized by other sections of the FCU need to support the extension of credit granting a waiver.18 Further, an FCU Act.13 and facilitate the downstream loan must make diligent efforts to dispose of The Board’s regulations in § 701.23 purchases as a tool to manage liquidity abandoned premises and any other real generally require that purchased eligible remains, and likely will remain for the property it does not intend to use in obligations be obligations of a foreseeable future. The Board believes transacting business. Additionally, the purchasing FCU’s members. However, that a one-year extension appropriately FCU must advertise for sale premises § 701.23(b)(2) provides certain limited balances the unpredictable length of the that have been abandoned for four exceptions to the general requirements economic impact of the COVID–19 years.19 The specific terms of these for well-capitalized FCUs that have pandemic with safety and soundness requirements do not stem directly from composite CAMEL ratings of ‘‘1’’ or considerations. the FCU Act, but instead reflect the 14 As noted in the April 2020 temporary ‘‘2.’’ The regulations authorize these Board’s judgment in implementing the FCUs to purchase the eligible final rule, the Board reiterates that this general statutory provision. obligations of any FICU or of any change allows FCUs to continue to hold In the April temporary final rule, the liquidating credit union without regard obligations purchased pursuant to this Board—noting the impact of the to whether they are obligations of the temporary final rule subsequent to the physical distancing measures adopted purchasing FCU’s members. As the rule’s expiration. The standard by many states and localities related to Board has previously noted, these types requirements applicable to the purchase COVID–19 20 on FCU’s ability to comply of purchases could be construed as of obligations under § 701.23 will being made under section 107(14) of the resume after the expiration of the with the occupancy and disposition FCU Act (which does not impose a temporary provisions at the close of requirements in § 701.36—adopted membership requirement), as opposed December 31, 2021, unless extended, provisions to temporarily toll the to under section 107(13).15 Section and will apply to all future purchases, regulatory mandated timeframes in the 107(14) authorizes FCUs to ‘‘purchase including to purchases of obligations rule. The Board emphasized that these all or part of the assets of another credit previously acquired under the health-related restrictions on the union and to assume the liabilities of provisions of this temporary final rule. mobility of individuals made the the selling credit union and those of its The Board also reiterates that the changes in occupancy and dispositions members.’’ This statutory interpretation restrictions temporarily relieved in required by § 701.36 extremely difficult. is consistent with the general principle § 701.23 do not apply to state-chartered, The Board explained that this temporary that the more specific provision or federally insured credit unions. Any change appropriately reflected these authority applies in favor of the more such restrictions applicable to state- unique circumstances while general provision. chartered credit unions would be based maintaining consistency with the In the April 2020 temporary final rule, on state laws or regulations. This statutory provision as interpreted and the Board explained that—while it temporary final rule does not modify the implemented by the Board. continues to believe that this exception current authority of FCUs under The temporary final rule provided should generally be limited to FCUs § 701.23 to purchase the obligations of that any days that fall within the period with CAMEL 1 or 2 composite ratings— a liquidating credit union without commencing on April 21, 2020 and it also recognizes the urgent need to regard to whether the obligations belong concluding at the close of December 31, support the extension of credit and to the purchasing FCU’s members. 2020 shall not be counted for purposes facilitate downstream loan purchases as of determining an FCU’s compliance C. FCU Occupancy and Disposal of a tool to manage liquidity. The Board, with the regulatory time periods. This Acquired Premises (Section 701.36(c)) therefore, temporarily amended its temporary deferral has provided FCUs Section 107(4) of the FCU Act additional flexibility to comply with the 13 44 FR 27068, 27069 (May 9, 1979). authorizes an FCU to purchase, hold, prescribed time periods, while still 14 Section 701.23 also contains exceptions to the and dispose of property necessary or complying with the statutory and membership requirement for certain purchases of incidental to its operations.17 The Board regulatory goals of ensuring that student loans and real estate loans that an FCU has implemented and interpreted this purchases to complete a pool for sale. The Board established this exception in the 1979 final rule provision of the FCU Act in its 18 12 CFR 701.36(c)(1). discussed above. 44 FR 27068 (May 9, 1979). 19 12 CFR 701.36(c)(2). 15 Section 107(14) is codified in 12 U.S.C. 16 Generally, credit unions with a CAMEL 20 See https://www.nytimes.com/interactive/2020/ 1757(14). For the Board’s prior statements on this composite rating lower than 3 are considered to be us/coronavirus-stay-at-home-order.html. (‘‘[A] a matter, please refer to 66 FR 58656, 58660 (Nov. 23, in ‘‘troubled condition’’ under the NCUA’s vast majority of Americans — nine in 10 United 2001); 51 FR15055, 15059 (Mar. 15, 2001), and 76 regulations. 12 CFR 700.2. States residents — are now or will soon be under FR 81421, 81426 (Dec. 28, 2011). 17 12 U.S.C. 1757(4). instructions to stay at home.’’)

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properties acquired or held by FCUs are Pursuant to the APA, general notice and Substantive rules which grant or used for credit union business. the opportunity for public comment are recognize an exemption or relieve a Due to the ongoing nature of the not required with respect to a restriction; (2) interpretative rules and COVID–19 pandemic and its continued rulemaking when an ‘‘agency for good statements of policy; or (3) as otherwise impact on FICUs, the Board has decided cause finds (and incorporates the provided by the agency for good it is necessary to extend the finding and a brief statement of reasons cause.24 Because the rules relieve effectiveness of this temporary therefor in the rules issued) that notice currently codified limitations and amendment until the close of December and public procedure thereon are restrictions, the extension of the 31, 2021. Physical distancing practices impracticable, unnecessary, or contrary temporary final rule is exempt from the continue to be a key component of to the public interest.’’ 23 APA’s delayed effective date preventing the spread of COVID–19 and The Board believes that the public requirement. As an alternative basis to many states, localities, and businesses interest is best served by implementing make the rule effective without the 30- have adopted related requirements or the extension of the previously issued day delayed effective date, the Board policies 21 that continue to make the temporary final rule immediately upon finds there is good cause to do so for the changes in occupancy and dispositions publication in the Federal Register. The same reasons set forth above regarding required by § 701.36 extremely difficult. Board notes that the COVID–19 crisis is advance notice and opportunity for The Board continues to believe this unprecedented. It is a rapidly changing comment. temporary change appropriately reflects situation and difficult to anticipate how the unique circumstances necessitated the disruptions caused by the crisis will B. Congressional Review Act by the COVID–19 pandemic while manifest themselves within the For purposes of the Congressional maintaining consistency with the financial system and how individual Review Act,25 the Office of Management statutory provision as interpreted and credit unions may be impacted. Because and Budget (OMB) makes a implemented by the Board. The Board of the widespread impact of a pandemic determination as to whether a final rule feels that a one-year extension and the temporary nature of both the constitutes a ‘‘major’’ rule. If the OMB appropriately balances the relief contemplated by the temporary deems a rule to be a ‘‘major rule,’’ the unpredictable length of the impact of final rule and this extension of such Congressional Review Act generally the COVID–19 pandemic with safety relief, the Board believes it is has good provides that the rule may not take and soundness considerations. cause to determine that ordinary notice effect until at least 60 days following its Example One: An FCU closed on the and public procedure are impracticable publication. purchase of an office building 30 days and that moving expeditiously to extend The Congressional Review Act defines before April 21, 2020 (that is, the the temporary final rule is in the best of a ‘‘major rule’’ as any rule that the temporary final rule is published on the interests of the public and the FICUs Administrator of the Office of 31st day following acquisition). Under that serve that public. The extension of Information and Regulatory Affairs of the temporary regulatory amendment, these temporary regulatory changes are the OMB finds has resulted in or is January 1, 2022 would be deemed the proactive steps that are designed help likely to result in (A) an annual effect 31st day following acquisition for FICUs cope with the economic impact on the economy of $100,000,000 or purposes of calculating the six-year of the COVID–19 pandemic, which may more; (B) a major increase in costs or deadline for partial occupancy. result in additional stress on credit prices for consumers, individual Example Two: An FCU has an union balance sheets, potentially industries, Federal, State, or local abandoned parcel of land that, under requiring robust liquidity management government agencies or geographic § 701.36(c)(2), it is required to advertise over the course of 2021. The changes are regions, or (C) significant adverse effects for sale no later than November 9, 2020 undertaken with expedience to ensure on competition, employment, (i.e., that fourth year anniversary of the the maximum intended effects remain investment, productivity, innovation, or date the parcel was abandoned). Under in place. on the ability of United States-based this temporary final rule, the FCU would The Board values public input in its enterprises to compete with foreign- have an additional amount of time to rulemakings and believes that providing based enterprises in domestic and meet this requirement equal to the the opportunity for comment enhances export markets.26 number of days between the publication its regulations. Accordingly, the Board For the same reasons set forth above, date and January 1, 2022. often solicits comments on its rules the Board is adopting the extension of IV. Regulatory Procedures even when not required under the APA, the temporary final rule without the such as for the rules it issues on an delayed effective date generally A. Administrative Procedure Act interim-final basis. The Board, however, prescribed under the Congressional The Board is issuing the extension of notes that the provisions extended in Review Act. The delayed effective date the temporary final rule without prior this rule are temporary in nature, and required by the Congressional Review notice and the opportunity for public designed specifically to help credit Act does not apply to any rule for which comment and the delayed effective date unions affected by the COVID–19 an agency for good cause finds (and ordinarily prescribed by the pandemic. The extension of the incorporates the finding and a brief Administrative Procedure Act (APA).22 amendments made by the initial statement of reasons therefor in the rule temporary final rule will automatically issued) that notice and public procedure 21 See https://www.nytimes.com/interactive/2020/ expire at the close of December 31, thereon are impracticable, unnecessary, us/states-reopen-map-coronavirus.html. (‘‘As 2021, and are limited in number and or contrary to the public interest.27 In coronavirus cases continue to surge and hospitals scope. For these reasons, the Board in some areas stretch to capacity, many states are light of current market uncertainty, the once again imposing limits on businesses and finds that there is good cause consistent Board believes that delaying the everyday life. Some governors are closing sectors with the public interest to issue the rule effective date of the extension of the they had reopened after spring lockdowns. Others, without advance notice and comment. wary of an ailing economy, are letting businesses The APA also requires a 30-day 24 remain largely open but setting stricter capacity 5 U.S.C. 553(d). limits or mandating the wearing of masks in delayed effective date, except for: (1) 25 5 U.S.C. 801–808. public.’’) 26 5 U.S.C. 804(2). 22 5 U.S.C. 551 et seq. 23 5 U.S.C. 553(b)(3). 27 5 U.S.C. 808.

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temporary final rule would be contrary agency must prepare a regulatory § 701.36 [Amended] to the public interest for the same flexibility analysis that meets the ■ 4. In § 701.36(c)(3), remove the date reasons discussed above. requirements of the RFA and publish ‘‘December 31, 2020’’ and add in its As required by the Congressional such analysis in the Federal Register. place the date ‘‘December 31, 2021’’. Review Act, the Board will submit the Specifically, the RFA normally requires [FR Doc. 2020–28279 Filed 12–21–20; 8:45 am] final rule and other appropriate reports agencies to describe the impact of a to Congress and the Government rulemaking on small entities by BILLING CODE 7535–01–P Accountability Office for review. providing a regulatory impact analysis. C. Paperwork Reduction Act For purposes of the RFA, the Board considers credit unions with assets less BUREAU OF CONSUMER FINANCIAL The Paperwork Reduction Act of 1995 than $100 million to be small entities. PROTECTION (PRA) (44 U.S.C. 3501 et seq.) requires As discussed previously, consistent 12 CFR Part 1003 that the Office of Management and with the APA, the Board has determined Budget (OMB) approve all collections of for good cause that general notice and Home Mortgage Disclosure information by a Federal agency from opportunity for public comment is the public before they can be (Regulation C) Adjustment to Asset- unnecessary, and therefore the Board is Size Exemption Threshold implemented. Respondents are not not issuing a notice of proposed required to respond to any collection of rulemaking. Rules that are exempt from AGENCY: Bureau of Consumer Financial information unless it displays a valid notice and comment procedures are also Protection. OMB control number. exempt from the RFA requirements, ACTION: Final rule; official In accordance with the PRA, the including conducting a regulatory interpretation. information collection requirements flexibility analysis, when among other included in this temporary final rule things the agency for good cause finds SUMMARY: The Bureau of Consumer extension have been submitted to OMB that notice and public procedure are Financial Protection (Bureau) is for approval under control numbers impracticable, unnecessary, or contrary amending the official commentary that 3133–0141, 3133–0127 and 3133–0040. to the public interest. Accordingly, the interprets the requirements of the D. Executive Order 13132, on Board has concluded that the RFA’s Bureau’s Regulation C (Home Mortgage Federalism requirements relating to initial and final Disclosure) to reflect the asset-size exemption threshold for banks, savings Executive Order 13132 28 encourages regulatory flexibility analysis do not apply. associations, and credit unions based on independent regulatory agencies to the annual percentage change in the consider the impact of their actions on List of Subjects in 12 CFR Part 701 average of the Consumer Price Index for state and local interests. The NCUA, an Aged, Civil rights, Credit, Credit Urban Wage Earners and Clerical independent regulatory agency, as unions, Fair housing, Individuals with Workers (CPI–W). Based on the 1.3 defined in 44 U.S.C. 3502(5), voluntarily disabilities, Insurance, Mortgages, percent increase in the average of the complies with the Executive order to Reporting and recordkeeping CPI–W for the 12-month period ending adhere to fundamental federalism requirements. in November 2020, the exemption principles. The extension of the threshold is adjusted to $48 million temporary final rule will not have By the NCUA Board, this 17th day of December 2020. from $47 million. Therefore, banks, substantial direct effects on the states, savings associations, and credit unions on the relationship between the Melane Conyers-Ausbrooks, Secretary of the Board. with assets of $48 million or less as of National Government and the states, or December 31, 2020, are exempt from on the distribution of power and For the reasons discussed in the collecting data in 2021. responsibilities among the various preamble, the Board amends 12 CFR levels of government. The Board has part 701 as follows: DATES: This rule is effective on January therefore determined that this rule does 1, 2021. not constitute a policy that has PART 701—ORGANIZATION AND FOR FURTHER INFORMATION CONTACT: federalism implications for purposes of OPERATION OF CREDIT UNIONS Willie Williams, Paralegal Specialist; the Executive order. Rachel Ross, Attorney-Advisor; Office of ■ 1. The authority citation for part 701 Regulations, at (202) 435–7700. If you E. Assessment of Federal Regulations continues to read as follows: require this document in an alternative and Policies on Families Authority: 12 U.S.C. 1752(5), 1755, 1756, electronic format, please contact CFPB_ The NCUA has determined that the 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, [email protected]. 1782, 1784, 1785, 1786, 1787, 1788, 1789. extension of the temporary final rule SUPPLEMENTARY INFORMATION: The Section 701.6 is also authorized by 15 U.S.C. will not affect family well-being within Bureau is amending Regulation C, the meaning of Section 654 of the 3717. Section 701.31 is also authorized by 15 U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– which implements the HMDA asset Treasury and General Government 3610. Section 701.35 is also authorized by 42 thresholds, to establish the asset-sized 29 Appropriations Act, 1999. U.S.C. 4311–4312. exemption threshold for depository F. Regulatory Flexibility Act (RFA) financial institution for 2021. The asset § 701.22 [Amended] threshold will be $48 million for 2021. The Regulatory Flexibility Act (RFA) ■ 2. In § 701.22(e), remove the date generally requires that when an agency ‘‘December 31, 2020’’ and add in its I. Background issues a proposed rule or a final rule place the date ‘‘December 31, 2021’’. The Home Mortgage Disclosure Act of pursuant to the APA or another law, the 1975 (HMDA) 1 requires most mortgage § 701.23 [Amended] lenders located in metropolitan areas to 28 Executive Order 13132 on Federalism, was ■ 3. In § 701.23(i) introductory text, collect data about their housing related signed by former President Clinton on August 4, 1999, and subsequently published in the Federal remove the date ‘‘December 31, 2020’’ lending activity. Annually, lenders must Register on August 10, 1999 (64 FR 43255). and add in its place the date ‘‘December 29 Public Law 105–277, 112 Stat. 2681 (1998). 31, 2021’’. 1 12 U.S.C. 2801–2810.

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report their data to the appropriate rulemaking and providing opportunity Federal Register Liaison, for purposes of Federal agencies and make the data for public comment are unnecessary. publication in the Federal Register. available to the public. The Bureau’s Therefore, the amendment is adopted in List of Subjects in 12 CFR Part 1003 Regulation C 2 implements HMDA. final form. Prior to 1997, HMDA exempted Section 553(d) of the APA generally Banks, banking, Credit unions, certain depository institutions as requires publication of a final rule not Mortgages, National banks, Reporting defined in HMDA (i.e., banks, savings less than 30 days before its effective and recordkeeping requirements, associations, and credit unions) with date, except (1) a substantive rule which Savings associations. assets totaling $10 million or less as of grants or recognizes an exemption or Authority and Issuance the preceding year-end. In 1996, HMDA relieves a restriction; (2) interpretive For the reasons set forth above, the was amended to expand the asset-size rules and statements of policy; or (3) as Bureau amends Regulation C, 12 CFR exemption for these depository otherwise provided by the agency for 3 part 1003, as set forth below: institutions. The amendment increased good cause found and published with the dollar amount of the asset-size the rule.5 At a minimum, the Bureau exemption threshold by requiring a one- PART 1003—HOME MORTGAGE believes the amendments fall under the DISCLOSURE (REGULATION C) time adjustment of the $10 million third exception to section 553(d). The figure based on the percentage by which Bureau finds that there is good cause to ■ 1. The authority citation for part 1003 the CPI–W for 1996 exceeded the CPI– make the amendments effective on continues to read as follows: W for 1975, and it provided for annual January 1, 2021. The amendment in this Authority: 12 U.S.C. 2803, 2804, 2805, adjustments thereafter based on the final rule is technical and non- annual percentage increase in the CPI– 5512, 5581. discretionary, and it applies the method ■ W, rounded to the nearest multiple of $1 previously established in the agency’s 2. In supplement I to part 1003, under million. regulations for determining adjustments Section 1003.2—Definitions, 2(g) The definition of ‘‘financial to the threshold. Financial Institution is revised to read institution’’ in § 1003.2(g) provides that as follows: the Bureau will adjust the asset B. Regulatory Flexibility Act threshold based on the year-to-year Supplement I to Part 1003—Official change in the average of the CPI–W, not Because no notice of proposed Interpretations seasonally adjusted, for each 12-month rulemaking is required, the Regulatory * * * * * period ending in November, rounded to Flexibility Act does not require an the nearest $1 million. For 2020, the initial or final regulatory flexibility Section 1003.2—Definitions 6 threshold was $47 million. During the analysis. * * * * * 12-month period ending in November C. Paperwork Reduction Act 2(g) Financial Institution 2020, the average of the CPI–W increased by 1.3 percent. As a result, the The Bureau has determined that this 1. Preceding calendar year and exemption threshold is increased to $48 final rule does not impose any new or preceding December 31. The definition million for 2021. Thus, banks, savings revise any existing recordkeeping, of financial institution refers both to the associations, and credit unions with reporting, or disclosure requirements on preceding calendar year and the assets of $48 million or less as of covered entities or members of the preceding December 31. These terms December 31, 2020, are exempt from public that would be collections of refer to the calendar year and the collecting data in 2021. An institution’s information requiring approval by the December 31 preceding the current exemption from collecting data in 2021 Office of Management and Budget under calendar year. For example, in 2021, the does not affect its responsibility to the Paperwork Reduction Act.7 preceding calendar year is 2020, and the report data it was required to collect in D. Congressional Review Act preceding December 31 is December 31, 2020. 2020. Accordingly, in 2021, Financial Pursuant to the Congressional Review Institution A satisfies the asset-size II. Procedural Requirements Act (5 U.S.C. 801 et seq.), the Bureau threshold described in § 1003.2(g)(1)(i) A. Administrative Procedure Act will submit a report containing this rule if its assets exceeded the threshold Under the Administrative Procedure and other required information to the specified in comment 2(g)–2 on Act (APA), notice and opportunity for United States Senate, the United States December 31, 2020. Likewise, in 2021, public comment are not required if the House of Representatives, and the Financial Institution A does not meet Bureau finds that notice and public Comptroller General of the United the loan-volume test described in comment are impracticable, States prior to the rule taking effect. The § 1003.2(g)(1)(v)(A) if it originated fewer unnecessary, or contrary to the public Office of Information and Regulatory than 100 closed-end mortgage loans interest.4 Pursuant to this final rule, Affairs (OIRA) has designated this rule during either 2019 or 2020. comment 2(g)–2 in Regulation C, as not a ‘‘major rule’’ as defined by 5 2. Adjustment of exemption threshold supplement I, is amended to update the U.S.C. 804(2). for banks, savings associations, and credit unions. For data collection in exemption threshold. The amendment III. Signing Authority in this final rule is technical and non- 2021, the asset-size exemption threshold discretionary, and it merely applies the The Acting Associate Director for is $48 million. Banks, savings formula established by Regulation C for Research, Markets and Regulations, Dan associations, and credit unions with determining any adjustments to the S. Sokolov, having reviewed and assets at or below $48 million as of exemption threshold. For these reasons, approved this document, is delegating December 31, 2020, are exempt from the Bureau has determined that the authority to electronically sign this collecting data for 2021. publishing a notice of proposed document to Grace Feola, a Bureau 3. Merger or acquisition—coverage of surviving or newly formed institution. 2 12 CFR part 1003. 5 5 U.S.C. 553(d). After a merger or acquisition, the 3 12 U.S.C. 2808(b). 6 5 U.S.C. 603(a), 604(a). surviving or newly formed institution is 4 5 U.S.C. 553(b)(B). 7 44 U.S.C. 3501–3521. a financial institution under § 1003.2(g)

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if it, considering the combined assets, acquires a branch office of an institution Federal agency, State-licensed agency, location, and lending activity of the that is not covered, data collection is State-licensed uninsured branch of a surviving or newly formed institution optional for covered loans and foreign bank, commercial lending and the merged or acquired institutions applications handled by the acquired company owned or controlled by a or acquired branches, satisfies the branch office for the calendar year of the foreign bank, or entity operating under criteria included in § 1003.2(g). For acquisition. section 25 or 25A of the Federal Reserve example, A and B merge. The surviving iii. A covered institution and an Act, 12 U.S.C. 601 and 611 (Edge Act or newly formed institution meets the institution that is not covered merge. and agreement corporations) may not loan threshold described in The institution that is not covered is the meet the definition of ‘‘bank’’ under the § 1003.2(g)(1)(v)(B) if the surviving or surviving institution, or a new Federal Deposit Insurance Act and may newly formed institution, A, and B institution that is not covered is formed. thereby fail to satisfy the definition of a originated a combined total of at least For the calendar year of the merger, data depository financial institution under 500 open-end lines of credit in each of collection is required for covered loans § 1003.2(g)(1). An entity is nonetheless the two preceding calendar years. and applications handled in offices of a financial institution if it meets the Likewise, the surviving or newly formed the previously covered institution that definition of nondepository financial institution meets the asset-size took place prior to the merger. After the institution under § 1003.2(g)(2). threshold in § 1003.2(g)(1)(i) if its assets merger date, data collection is optional * * * * * and the combined assets of A and B on for covered loans and applications December 31 of the preceding calendar handled in the offices of the institution Dated: December 17, 2020. year exceeded the threshold described that was previously covered. When an Grace Feola, in § 1003.2(g)(1)(i). Comment 2(g)–4 institution remains not covered after Federal Register Liaison, Bureau of Consumer discusses a financial institution’s acquiring a branch office of a covered Financial Protection. responsibilities during the calendar year institution, data collection is required [FR Doc. 2020–28230 Filed 12–21–20; 8:45 am] of a merger. for transactions of the acquired branch BILLING CODE 4810–AM–P 4. Merger or acquisition—coverage for office that take place prior to the calendar year of merger or acquisition. acquisition. Data collection by the The scenarios described below illustrate acquired branch office is optional for BUREAU OF CONSUMER FINANCIAL a financial institution’s responsibilities transactions taking place in the PROTECTION for the calendar year of a merger or remainder of the calendar year after the acquisition. For purposes of these acquisition. 12 CFR Part 1026 illustrations, a ‘‘covered institution’’ iv. Two covered institutions merge. means a financial institution, as defined The surviving or newly formed Truth in Lending Act (Regulation Z) in § 1003.2(g), that is not exempt from institution is a covered institution. Data Adjustment to Asset-Size Exemption reporting under § 1003.3(a), and ‘‘an collection is required for the entire Threshold institution that is not covered’’ means calendar year of the merger. The AGENCY: Bureau of Consumer Financial either an institution that is not a surviving or newly formed institution Protection. financial institution, as defined in files either a consolidated submission or ACTION: § 1003.2(g), or an institution that is separate submissions for that calendar Final rule; official exempt from reporting under year. When a covered institution interpretation. acquires a branch office of a covered § 1003.3(a). SUMMARY: The Bureau of Consumer i. Two institutions that are not institution, data collection is required Financial Protection (Bureau) is covered merge. The surviving or newly for the entire calendar year of the amending the official commentary that formed institution meets all of the merger. Data for the acquired branch interprets the requirements of the requirements necessary to be a covered office may be submitted by either Bureau’s Regulation Z (Truth in institution. No data collection is institution. Lending) to reflect a change in the asset- required for the calendar year of the 5. Originations. Whether an size threshold for certain creditors to merger (even though the merger creates institution is a financial institution qualify for an exemption to the an institution that meets all of the depends in part on whether the requirements necessary to be a covered institution originated at least 100 requirement to establish an escrow institution). When a branch office of an closed-end mortgage loans in each of the account for a higher-priced mortgage institution that is not covered is two preceding calendar years or at least loan. This amendment is based on the acquired by another institution that is 500 open-end lines of credit in each of annual percentage change in the average not covered, and the acquisition results the two preceding calendar years. of the Consumer Price Index for Urban in a covered institution, no data Comments 4(a)–2 through –4 discuss Wage Earners and Clerical Workers collection is required for the calendar whether activities with respect to a (CPI–W). Based on the 1.3 percent year of the acquisition. particular closed-end mortgage loan or increase in the average of the CPI–W for ii. A covered institution and an open-end line of credit constitute an the 12-month period ending in institution that is not covered merge. origination for purposes of § 1003.2(g). November 2020, the exemption The covered institution is the surviving 6. Branches of foreign banks—treated threshold is adjusted to $2.230 billion institution, or a new covered institution as banks. A Federal branch or a State- from $2.202 billion. Therefore, creditors is formed. For the calendar year of the licensed or insured branch of a foreign with assets of less than $2.230 billion merger, data collection is required for bank that meets the definition of a (including assets of certain affiliates) as covered loans and applications handled ‘‘bank’’ under section 3(a)(1) of the of December 31, 2020, are exempt, if in the offices of the merged institution Federal Deposit Insurance Act (12 other requirements of Regulation Z also that was previously covered and is U.S.C. 1813(a)) is a bank for the are met, from establishing escrow optional for covered loans and purposes of § 1003.2(g). accounts for higher-priced mortgage applications handled in offices of the 7. Branches and offices of foreign loans in 2021. merged institution that was previously banks and other entities—treated as DATES: This rule is effective on January not covered. When a covered institution nondepository financial institutions. A 1, 2021.

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FOR FURTHER INFORMATION CONTACT: calendar year 2020 are less than $2.230 the Bureau believes the amendments fall Willie Williams, Paralegal Specialist; billion on December 31, 2020, and it under the third exception to section Rachel Ross, Attorney-Advisor, Office of meets the other requirements of 553(d). The Bureau finds that there is Regulations, at (202) 435–7700. If you § 1026.35(b)(2)(iii), it will be exempt good cause to make the amendments require this document in an alternative from the escrow-accounts requirement effective on January 1, 2020. The electronic format, please contact CFPB_ for higher-priced mortgage loans in 2021 amendment in this final rule is [email protected]. and will also be exempt from the technical and non-discretionary, and it SUPPLEMENTARY INFORMATION: escrow-accounts requirement for higher- applies the method previously priced mortgage loans for purposes of established in the agency’s regulations I. Background any loan consummated in 2022 with for automatic adjustments to the Section 129D of the Truth in Lending applications received before April 1, threshold. Act (TILA) contains a general 2022. The adjustment to the escrows B. Regulatory Flexibility Act requirement that an escrow account be asset-size exemption threshold will also established by a creditor to pay for increase the threshold for small-creditor Because no notice of proposed property taxes and insurance premiums portfolio and balloon-payment qualified rulemaking is required, the Regulatory for certain first-lien higher-priced mortgages under Regulation Z. The Flexibility Act does not require an mortgage loan transactions. TILA requirements for small-creditor portfolio initial or final regulatory flexibility section 129D also generally permits an qualified mortgages at analysis.4 exemption from the higher-priced § 1026.43(e)(5)(i)(D) reference the asset C. Paperwork Reduction Act mortgage loan escrow requirement for a threshold in § 1026.35(b)(2)(iii)(C). creditor that meets certain requirements, Likewise, the requirements for balloon- The Bureau has determined that this including any asset-size threshold the payment qualified mortgages at final rule does not impose any new or Bureau may establish. § 1026.43(f)(1)(vi) reference the asset revise any existing recordkeeping, In the 2013 Escrows Final Rule,1 the threshold in § 1026.35(b)(2)(iii)(C). reporting, or disclosure requirements on Bureau established such an asset-size Under § 1026.32(d)(1)(ii)(C), balloon- covered entities or members of the threshold of $2 billion, which would payment qualified mortgages that satisfy public that would be collections of adjust automatically each year, based on all applicable criteria in information requiring approval by the the year-to-year change in the average of § 1026.43(f)(1)(i) through (vi) and (f)(2), Office of Management and Budget under the CPI–W for each 12-month period including being made by creditors that the Paperwork Reduction Act.5 ending in November, with rounding to have (together with certain affiliates) D. Congressional Review Act the nearest million dollars.2 In 2015, the total assets below the threshold in Bureau revised the asset-size threshold § 1026.35(b)(2)(iii)(C), are also excepted Pursuant to the Congressional Review for small creditors and how it applies. from the prohibition on balloon Act (5 U.S.C. 801 et seq.), the Bureau The Bureau included in the calculation payments for high-cost mortgages. will submit a report containing this rule of the asset-size threshold the assets of and other required information to the the creditor’s affiliates that regularly II. Procedural Requirements United States Senate, the United States extended covered transactions secured A. Administrative Procedure Act House of Representatives, and the by first liens during the applicable Comptroller General of the United Under the Administrative Procedure period and added a grace period to States prior to the rule taking effect. The Act (APA), notice and opportunity for allow an otherwise eligible creditor that Office of Information and Regulatory public comment are not required if the exceeded the asset limit in the Affairs (OIRA) has designated this rule Bureau finds that notice and public preceding calendar year (but not in the as not a ‘‘major rule’’ as defined by 5 comment are impracticable, calendar year before the preceding year) U.S.C. 804(2). unnecessary, or contrary to the public to continue to operate as a small interest. 5 U.S.C. 553(b)(B). Pursuant to III. Signing Authority creditor with respect to transactions this final rule, comment 35(b)(2)(iii)–1 with applications received before April The Acting Associate Director for in Regulation Z is amended to update 1 of the current calendar year.3 For Research, Markets and Regulations, Dan the exemption threshold. The 2020, the threshold was $2.202 billion. S. Sokolov, having reviewed and During the 12-month period ending in amendment in this final rule is approved this document, is delegating November 2020, the average of the CPI– technical and merely applies the the authority to electronically sign this W increased by 1.3 percent. As a result, formula previously established in document to Grace Feola, a Bureau the exemption threshold is increased to Regulation Z for determining any Federal Register Liaison, for purposes of $2.230 billion for 2021. Thus, if the adjustments to the exemption threshold. publication in the Federal Register. creditor’s assets together with the assets For these reasons, the Bureau has List of Subjects in 12 CFR Part 1026 of its affiliates that regularly extended determined that publishing a notice of first-lien covered transactions during proposed rulemaking and providing Advertising, Banks, banking, opportunity for public comment are Consumer protection, Credit, Credit 1 78 FR 4726 (Jan. 22, 2013). unnecessary. Therefore, the amendment unions, Mortgages, National banks, 2 See 12 CFR 1026.35(b)(2)(iii)(C). is adopted in final form. Reporting and recordkeeping 3 See 80 FR 59943, 59951 (Oct. 2, 2015). The Section 553(d) of the APA generally requirements, Savings associations, Bureau also issued an interim final rule in March requires publication of a final rule not Truth in lending. 2016 to revise certain provisions in Regulation Z to less than 30 days before its effective effectuate the Helping Expand Lending Practices in Authority and Issuance Rural Communities Act’s amendments to TILA date, except (1) a substantive rule which (Pub. L. 114–94, section 89003, 129 Stat. 1312, grants or recognizes an exemption or For the reasons set forth above, the 1800–01 (2015)). The rule broadened the cohort of relieves a restriction; (2) interpretive Bureau amends Regulation Z, 12 CFR creditors that may be eligible under TILA for the rules and statements of policy; or (3) as special provisions allowing origination of balloon- part 1026, as set forth below: payment qualified mortgages and balloon-payment otherwise provided by the agency for high-cost mortgages, as well as for the escrow good cause found and published with 4 5 U.S.C. 603(a), 604(a). exemption. See 81 FR 16074 (Mar. 25, 2016). the rule. 5 U.S.C. 553(d). At a minimum, 5 44 U.S.C. 3501–3521.

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PART 1026—TRUTH IN LENDING calendar year if it extended a first-lien preceding calendar years if the (REGULATION Z) covered transaction in the preceding application for the loan was received calendar year secured by a property before April 1 of the current calendar ■ 1. The authority citation for part 1026 located in a rural-or-underserved area. If year. For purposes of continues to read as follows: the creditor does not meet the rural-or- § 1026.35(b)(2)(iii)(B), a transfer of a Authority: 12 U.S.C. 2601, 2603–2605, underserved test in the preceding first-lien covered transaction to 2607, 2609, 2617, 3353, 5511, 5512, 5532, calendar year, the creditor meets this ‘‘another person’’ includes a transfer by 5581; 15 U.S.C. 1601 ET SEQ. condition for a higher-priced mortgage a creditor to its affiliate. A. In general, whether this condition ■ 2. In supplement I to part 1026, under loan consummated during the current is satisfied depends on the creditor’s Section 1026.35—Requirements for calendar year only if the application for activity during the preceding calendar Higher-Priced Mortgage Loans, 35(b)(2) the loan was received before April 1 of year. However, if the application for the Exemptions, Paragraph 35(b)(2)(iii) is the current calendar year and the loan in question is received before April revised to read as follows: creditor extended a first-lien covered transaction during the next-to-last 1 of the current calendar year, the Supplement I to Part 1026—Official calendar year that is secured by a creditor may instead meet this condition Interpretations property located in a rural or based on activity during the next-to-last calendar year. This provides creditors * * * * * underserved area. The following examples are illustrative: with a grace period if their activity falls Subpart E—Special Rules for Certain 1. Assume that a creditor extended at or below the threshold in one Home Mortgage Transactions during 2016 a first-lien covered calendar year but exceeds it in the next transaction that is secured by a property calendar year. * * * * * located in a rural or underserved area. B. For example, assume that in 2015 a creditor and its affiliates together Section 1026.35—Requirements for Because the creditor extended a first- extended 1,500 loans that were sold, Higher-Priced Mortgage Loans lien covered transaction during 2016 that is secured by a property located in assigned, or otherwise transferred by the * * * * * a rural or underserved area, the creditor creditor or its affiliates to another 35(b)(2) Exemptions can meet this condition for exemption person, or that were subject at the time for any higher-priced mortgage loan of consummation to a commitment to be * * * * * consummated during 2017. acquired by another person, and 2,500 Paragraph 35(b)(2)(iii) 2. Assume that a creditor did not such loans in 2016. Because the 2016 extend during 2016 a first-lien covered transaction activity exceeds the 1. Requirements for exemption. Under transaction secured by a property that is threshold but the 2015 transaction § 1026.35(b)(2)(iii), except as provided located in a rural or underserved area. activity does not, the creditor satisfies in § 1026.35(b)(2)(v), a creditor need not Assume further that the same creditor this condition for exemption for a establish an escrow account for taxes extended during 2015 a first-lien higher-priced mortgage loan and insurance for a higher-priced covered transaction that is located in a consummated during 2017 if the mortgage loan, provided the following rural or underserved area. Assume creditor received the application for the four conditions are satisfied when the further that the creditor consummates a loan before April 1, 2017, but does not higher-priced mortgage loan is higher-priced mortgage loan in 2017 for satisfy this condition for a higher-priced consummated: which the application was received in mortgage loan consummated during i. During the preceding calendar year, November 2017. Because the creditor 2017 if the application for the loan was or during either of the two preceding did not extend during 2016 a first-lien received on or after April 1, 2017. calendar years if the application for the covered transaction secured by a C. For purposes of loan was received before April 1 of the property that is located in a rural or § 1026.35(b)(2)(iii)(B), extensions of current calendar year, a creditor underserved area, and the application first-lien covered transactions, during extended a first-lien covered was received on or after April 1, 2017, the applicable time period, by all of a transaction, as defined in the creditor does not meet this creditor’s affiliates, as ‘‘affiliate’’ is § 1026.43(b)(1), secured by a property condition for exemption. However, defined in § 1026.32(b)(5), are counted located in an area that is either ‘‘rural’’ assume instead that the creditor toward the threshold in this section. or ‘‘underserved,’’ as set forth in consummates a higher-priced mortgage Under the Bank Holding Company Act, § 1026.35(b)(2)(iv). loan in 2017 based on an application a company has control over a bank or A. In general, whether the rural-or- received in February 2017. The creditor another company if it directly or underserved test is satisfied depends on meets this condition for exemption for indirectly or acting through one or more the creditor’s activity during the this loan because the application was persons owns, controls, or has power to preceding calendar year. However, if the received before April 1, 2017, and the vote 25 per centum or more of any class application for the loan in question was creditor extended during 2015 a first- of voting securities of the bank or received before April 1 of the current lien covered transaction that is located company; it controls in any manner the calendar year, the creditor may instead in a rural or underserved area. election of a majority of the directors or meet the rural-or-underserved test based ii. The creditor and its affiliates trustees of the bank or company; or the on its activity during the next-to-last together extended no more than 2,000 Federal Reserve Board determines, after calendar year. This provides creditors covered transactions, as defined in notice and opportunity for hearing, that with a grace period if their activity § 1026.43(b)(1), secured by first liens, the company directly or indirectly meets the rural-or-underserved test (in that were sold, assigned, or otherwise exercises a controlling influence over § 1026.35(b)(2)(iii)(A)) in one calendar transferred by the creditor or its the management or policies of the bank year but fails to meet it in the next affiliates to another person, or that were or company. 12 U.S.C. 1841(a)(2). calendar year. subject at the time of consummation to iii. As of the end of the preceding B. A creditor meets the rural-or- a commitment to be acquired by another calendar year, or as of the end of either underserved test for any higher-priced person, during the preceding calendar of the two preceding calendar years if mortgage loan consummated during a year or during either of the two the application for the loan was

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received before April 1 of the current in § 1026.32(b)(5), of the co-owner application was received before April 1, calendar year, the creditor and its creditor. Assuming the company is not 2022. For historical purposes: affiliates that regularly extended an affiliate of the co-owner creditor by 1. For calendar year 2013, the asset covered transactions secured by first virtue of any other aspect of the threshold was $2,000,000,000. Creditors liens, together, had total assets that are definition (such as by the company and that had total assets of less than less than the applicable annual asset co-owner creditor being under common $2,000,000,000 on December 31, 2012, threshold. control), the company’s assets are satisfied this criterion for purposes of A. For purposes of included toward the asset limit of the the exemption during 2013. § 1026.35(b)(2)(iii)(C), in addition to the co-owner creditor only if the company 2. For calendar year 2014, the asset creditor’s assets, only the assets of a is controlled by the co-owner creditor, threshold was $2,028,000,000. Creditors creditor’s ‘‘affiliate’’ (as defined by ‘‘as set forth in the Bank Holding that had total assets of less than § 1026.32(b)(5)) that regularly extended Company Act.’’ If the co-owner creditor $2,028,000,000 on December 31, 2013, covered transactions (as defined by and the company are affiliates (by virtue satisfied this criterion for purposes of § 1026.43(b)(1)) secured by first liens, of any aspect of the definition), the co- the exemption during 2014. are counted toward the applicable owner creditor counts all of the 3. For calendar year 2015, the asset annual asset threshold. See comment company’s assets toward the asset limit, threshold was $2,060,000,000. Creditors 35(b)(2)(iii)–1.ii.C for discussion of regardless of the co-owner creditor’s that had total assets of less than definition of ‘‘affiliate.’’ ownership share. Further, because the $2,060,000,000 on December 31, 2014, B. Only the assets of a creditor’s co-owner and the company are mutual satisfied this criterion for purposes of affiliate that regularly extended first-lien affiliates the company also would count any loan consummated in 2015 and, if covered transactions during the all of the co-owner’s assets towards its the creditor’s assets together with the applicable period are included in own asset limit. See comment assets of its affiliates that regularly calculating the creditor’s assets. The 35(b)(2)(iii)–1.ii.C for discussion of the extended first-lien covered transactions meaning of ‘‘regularly extended’’ is definition of ‘‘affiliate.’’ during calendar year 2014 were less based on the number of times a person than that amount, for purposes of any D. A creditor satisfies the criterion in extends consumer credit for purposes of loan consummated in 2016 for which § 1026.35(b)(2)(iii)(C) for purposes of the definition of ‘‘creditor’’ in the application was received before any higher-priced mortgage loan § 1026.2(a)(17). Because covered April 1, 2016. consummated during 2016, for example, transactions are ‘‘transactions secured 4. For calendar year 2016, the asset if the creditor (together with its affiliates by a dwelling,’’ consistent with threshold was $2,052,000,000. A that regularly extended first-lien § 1026.2(a)(17)(v), an affiliate regularly creditor that together with the assets of covered transactions) had total assets of extended covered transactions if it its affiliates that regularly extended extended more than five covered less than the applicable asset threshold first-lien covered transactions during transactions in a calendar year. Also on December 31, 2015. A creditor that calendar year 2015 had total assets of consistent with § 1026.2(a)(17)(v), (together with its affiliates that regularly less than $2,052,000,000 on December because a covered transaction may be a extended first-lien covered transactions) 31, 2015, satisfied this criterion for high-cost mortgage subject to § 1026.32, did not meet the applicable asset purposes of any loan consummated in an affiliate regularly extends covered threshold on December 31, 2015 2016 and for purposes of any loan transactions if, in any 12-month period, satisfies this criterion for a higher- consummated in 2017 for which the it extends more than one covered priced mortgage loan consummated application was received before April 1, transaction that is subject to the during 2016 if the application for the 2017. requirements of § 1026.32 or one or loan was received before April 1, 2016 5. For calendar year 2017, the asset more such transactions through a and the creditor (together with its threshold was $2,069,000,000. A mortgage broker. Thus, if a creditor’s affiliates that regularly extended first- creditor that together with the assets of affiliate regularly extended first-lien lien covered transactions) had total its affiliates that regularly extended covered transactions during the assets of less than the applicable asset first-lien covered transactions during preceding calendar year, the creditor’s threshold on December 31, 2014. calendar year 2016 had total assets of assets as of the end of the preceding E. Under § 1026.35(b)(2)(iii)(C), the less than $2,069,000,000 on December calendar year, for purposes of the asset $2,000,000,000 asset threshold adjusts 31, 2016, satisfied this criterion for limit, take into account the assets of that automatically each year based on the purposes of any loan consummated in affiliate. If the creditor, together with its year-to-year change in the average of the 2017 and for purposes of any loan affiliates that regularly extended first- Consumer Price Index for Urban Wage consummated in 2018 for which the lien covered transactions, exceeded the Earners and Clerical Workers, not application was received before April 1, asset limit in the preceding calendar seasonally adjusted, for each 12-month 2018. year—to be eligible to operate as a small period ending in November, with 6. For calendar year 2018, the asset creditor for transactions with rounding to the nearest million dollars. threshold was $2,112,000,000. A applications received before April 1 of The Bureau will publish notice of the creditor that together with the assets of the current calendar year—the assets of asset threshold each year by amending its affiliates that regularly extended the creditor’s affiliates that regularly this comment. For calendar year 2021, first-lien covered transactions during extended covered transactions in the the asset threshold is $2,230,000,000. A calendar year 2017 had total assets of year before the preceding calendar year creditor that together with the assets of less than $2,112,000,000 on December are included in calculating the creditor’s its affiliates that regularly extended 31, 2017, satisfied this criterion for assets. first-lien covered transactions during purposes of any loan consummated in C. If multiple creditors share calendar year 2019 has total assets of 2018 and for purposes of any loan ownership of a company that regularly less than $2,230,000,000 on December consummated in 2019 for which the extended first-lien covered transactions, 31, 2020, satisfies this criterion for application was received before April 1, the assets of the company count toward purposes of any loan consummated in 2019. the asset limit for a co-owner creditor if 2021 and for purposes of any loan 7. For calendar year 2019, the asset the company is an ‘‘affiliate,’’ as defined consummated in 2022 for which the threshold was $2,167,000,000. A

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creditor that together with the assets of Dated: December 17, 2020. www.regulations.gov/, including any its affiliates that regularly extended Grace Feola, personal information the commenter first-lien covered transactions during Federal Register Liaison, Bureau of Consumer provides. Using the search function of calendar year 2018 had total assets of Financial Protection. the docket website, anyone can find and less than $2,167,000,000 on December [FR Doc. 2020–28231 Filed 12–21–20; 8:45 am] read the electronic form of all comments 31, 2018, satisfied this criterion for BILLING CODE 4810–AM–P received into any FAA docket, purposes of any loan consummated in including the name of the individual 2019 and for purposes of any loan sending the comment (or signing the consummated in 2020 for which the DEPARTMENT OF TRANSPORTATION comment for an association, business, application was received before April 1, labor union, etc.). DOT’s complete 2020. Federal Aviation Administration Privacy Act Statement can be found in the Federal Register published on April 8. For calendar year 2020, the asset 14 CFR Part 27 11, 2000 (65 FR 19477–19478). threshold was $2,202,000,000. A Confidential Business Information: creditor that together with the assets of [Docket No. FAA–2020–1102; Notice No. 27– CBI is commercial or financial 052–SC] its affiliates that regularly extended information that is both customarily and first-lien covered transactions during Special Conditions: Garmin actually treated as private by its owner. calendar year 2019 had total assets of International, Inc., Bell Textron Canada Under the Freedom of Information Act less than $2,202,000,000 on December Limited Model 505 Helicopter, Visual (FOIA) (5 U.S.C. 552), CBI is exempt 31, 2019, satisfied this criterion for Flight Rules Autopilot and Stability from public disclosure. If your purposes of any loan consummated in Augmentation System comments responsive to these special 2020 and for purposes of any loan conditions contain commercial or consummated in 2010 for which the AGENCY: Federal Aviation financial information that is customarily application was received before April 1, Administration (FAA), DOT. treated as private, that you actually treat 2021. ACTION: Final special conditions; request as private, and that is relevant or for comments; correction. responsive to these special conditions, it iv. The creditor and its affiliates do is important that you clearly designate not maintain an escrow account for any SUMMARY: The FAA is correcting special the submitted comments as CBI. Please mortgage transaction being serviced by conditions, which published in the mark each page of your submission the creditor or its affiliate at the time the Federal Register on December 11, 2020. containing CBI as ‘‘PROPIN.’’ The FAA transaction is consummated, except as The special conditions issued for the will treat such marked submissions as provided in § 1026.35(b)(2)(iii)(D)(1) Bell Textron Canada Limited Model 505 confidential under the FOIA, and they and (2). Thus, the exemption applies, helicopter did not include an effective will not be placed in the public docket provided the other conditions of date. This correction adds an effective of these special conditions. Submissions § 1026.35(b)(2)(iii) are satisfied, even if date for the special conditions. containing CBI should be sent to Andy the creditor previously maintained DATES: The effective date for the special Shaw, Continued Operational Safety escrow accounts for mortgage loans, conditions published December 11, Section, AIR–682, Rotorcraft Standards provided it no longer maintains any 2020, at 85 FR 79826, is December 22, Branch, Policy and Innovation Division, such accounts except as provided in 2020. Comments will continue to be Aircraft Certification Service, Federal § 1026.35(b)(2)(iii)(D)(1) and (2). Once a received until January 11, 2021. Aviation Administration, 10101 creditor or its affiliate begins escrowing ADDRESSES: Send comments identified Hillwood Pkwy., Fort Worth, TX 76177; for loans currently serviced other than by Docket No. FAA–2020–1102 using telephone (817) 222–5384. Any those addressed in any of the following methods: commentary that the FAA receives § 1026.35(b)(2)(iii)(D)(1) and (2), • Federal eRegulations Portal: Go to which is not specifically designated as however, the creditor and its affiliate http://www.regulations.gov/ and follow CBI will be placed in the public docket become ineligible for the exemption in the online instructions for sending your for this rulemaking. § 1026.35(b)(2)(iii) on higher-priced comments electronically. Docket: Background documents or comments received may be read at mortgage loans they make while such • Mail: Send comments to Docket http://www.regulations.gov/ at any time. escrowing continues. Thus, as long as a Operations, M–30, U.S. Department of Follow the online instructions for creditor (or its affiliate) services and Transportation (DOT), 1200 New Jersey Avenue SE, Room W12–140, West accessing the docket or go to Docket maintains escrow accounts for any Operations in Room W12–140 of the mortgage loans, other than as provided Building Ground Floor, Washington, DC 20590–0001. West Building Ground Floor at 1200 in § 1026.35(b)(2)(iii)(D)(1) and (2), the • New Jersey Avenue SE, Washington, creditor will not be eligible for the Hand Delivery or Courier: Take comments to Docket Operations in DC, between 9 a.m. and 5 p.m., Monday exemption for any higher-priced Room W12–140 of the West Building through Friday, except Federal holidays. mortgage loan it may make. For Ground Floor at 1200 New Jersey FOR FURTHER INFORMATION CONTACT: purposes of § 1026.35(b)(2)(iii), a Avenue SE, Washington, DC, between 9 Andy Shaw, Continued Operational creditor or its affiliate ‘‘maintains’’ an a.m. and 5 p.m., Monday through Safety Section, AIR–682, Rotorcraft escrow account only if it services a Friday, except Federal holidays. Standards Branch, Policy and mortgage loan for which an escrow • Fax: Fax comments to Docket Innovation Division, Aircraft account has been established at least Operations at 202–493–2251. Certification Service, Federal Aviation through the due date of the second Privacy: Except for Confidential Administration, 10101 Hillwood Pkwy., periodic payment under the terms of the Business Information (CBI) as described Fort Worth, TX 76177; telephone (817) legal obligation. in the following paragraph, and other 222–5384; email [email protected]. * * * * * information as described in 14 CFR SUPPLEMENTARY INFORMATION: On 11.35, the FAA will post all comments December 11, 2020, the FAA issued it receives, without change, to http:// Special Conditions No. 27–052–SC,

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under Docket No. FAA–2020–1102. DATES: This rule is effective December illustrative list of activities that could be Those special conditions were 18, 2020. considered contrary to the national published in the Federal Register on FOR FURTHER INFORMATION CONTACT: security or foreign policy interests of the December 11, 2020 (85 FR 79826). Chair, End-User Review Committee, United States. Those special conditions pertain to the Office of the Assistant Secretary, Export This rule implements the decision of Bell Textron Canada Limited Model 505 Administration, Bureau of Industry and the ERC to add seventy-seven entities, helicopter, as modified by Garmin Security, Department of Commerce, under a total of seventy-eight entries, to International, Inc., with the installation Phone: (202) 482–5991, Fax: (202) 482– the Entity List; one of these entities is of an autopilot and stability 3911, Email: [email protected]. being added under two entries. These augmentation system. The effective date SUPPLEMENTARY INFORMATION: seventy-seven entities will be listed on was inadvertently omitted from the final the Entity List under the following special conditions. This correction Background destinations, as applicable, China, includes the effective date for those The Entity List (supplement No. 4 to Bulgaria, France, Germany, Hong Kong, special conditions. There are no part 744 of the Export Administration Italy, Malta, Pakistan, Russia, and the substantive changes to the document. Regulations (EAR)) identifies entities for U.A.E. The ERC made the decision to which there is reasonable cause to add each of the seventy-seven entities Issued in Fort Worth, Texas. described below under the standard set Jorge Castillo, believe, based on specific and articulable facts, that the entities have forth in § 744.11(b) of the EAR. Manager, Rotorcraft Standards Branch, Policy been involved, are involved, or pose a The ERC determined that the seventy- and Innovation Division, Aircraft seven subject entities are engaging in or Certification Service. significant risk of being or becoming involved in activities contrary to the enabling activities contrary to U.S. [FR Doc. 2020–28325 Filed 12–18–20; 11:15 am] national security or foreign policy national security and foreign policy BILLING CODE 4910–13–P interests of the United States. The EAR interests, as follows: (15 CFR parts 730–774) impose Semiconductor Manufacturing International Corporation Incorporated additional license requirements on, and (SMIC) is added to the Entity List as a DEPARTMENT OF COMMERCE limit the availability of most license result of China’s military-civil fusion exceptions for, exports, reexports, and (MCF) doctrine and evidence of Bureau of Industry and Security transfers (in-country) to listed entities. activities between SMIC and entities of The license review policy for each listed concern in the Chinese military 15 CFR Part 744 entity is identified in the ‘‘License industrial complex. The Entity List review policy’’ column on the Entity [Docket No. 201215–0347] designation limits SMIC’s ability to List, and the impact on the availability acquire certain U.S. technology by RIN 0694–AI37 of license exceptions is described in the requiring exporters, reexporters, and in- relevant Federal Register notice adding country transferors of such technology Addition of Entities to the Entity List, entities to the Entity List. BIS places Revision of Entry on the Entity List, to apply for a license to sell to the entities on the Entity List pursuant to company. Items uniquely required to and Removal of Entities From the part 744 (Control Policy: End-User and Entity List produce semiconductors at advanced End-Use Based) and part 746 technology nodes 10 nanometers or AGENCY: Bureau of Industry and (Embargoes and Other Special Controls) below will be subject to a presumption Security, Commerce. of the EAR. of denial to prevent such key enabling The End-User Review Committee ACTION: Final rule. technology from supporting China’s (ERC), composed of representatives of military modernization efforts. This rule SUMMARY: In this rule, the Bureau of the Departments of Commerce (Chair), adds SMIC and the following ten Industry and Security (BIS) amends the State, Defense, Energy and, where entities related to SMIC: Semiconductor Export Administration Regulations appropriate, the Treasury, makes all Manufacturing International (Beijing) (EAR) by adding seventy-seven entities, decisions regarding additions to, Corporation; Semiconductor under a total of seventy-eight entries, to removals from, or other modifications to Manufacturing International (Tianjin) the Entity List. These seventy-seven the Entity List. The ERC makes all Corporation; Semiconductor entities have been determined by the decisions to add an entry to the Entity Manufacturing International (Shenzhen) U.S. Government to be acting contrary List by majority vote and all decisions Corporation; SMIC Semiconductor to the national security or foreign policy to remove or modify an entry by Manufacturing (Shanghai) Co., Ltd.; interests of the United States. These unanimous vote. SMIC Holdings Limited; Semiconductor entities will be listed on the Entity List ERC Entity List Decisions Manufacturing South China under the destinations of the People’s Corporation; SMIC Northern Integrated Republic of China (China), Bulgaria, Additions to the Entity List Circuit Manufacturing (Beijing) Co., France, Germany, Hong Kong, Italy, Under § 744.11(b) (Criteria for Ltd.; SMIC Hong Kong International Malta, Pakistan, Russia, and the United revising the Entity List) of the EAR, Company Limited; SJ Semiconductor; Arab Emirates (U.A.E.). This rule also entities for which there is reasonable and Ningbo Semiconductor revises one existing entry on the Entity cause to believe, based on specific and International Corporation (NSI). list under the destination of China and articulable facts, that the entities have The ERC determined to add the one under the destination of Pakistan. been involved, are involved, or pose a entities AGCU Scientech; China Finally, this rule removes a total of four significant risk of being or becoming National Scientific Instruments and entities under the destinations of Israel involved in activities that are contrary Materials (CNSIM); DJI; and Kuang-Chi and the U.A.E. The removals are made to the national security or foreign policy Group for activities contrary to U.S. in connection with requests for removal interests of the United States, and those foreign policy interests. Specifically, that BIS received pursuant to the EAR acting on behalf of such entities, may be these four entities have enabled wide- and a review of information provided in added to the Entity List. Paragraphs scale human rights abuses within China those requests. (b)(1) through (5) of § 744.11 provide an through abusive genetic collection and

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analysis or high-technology Equipment Co., Ltd. to the Entity List that necessitates prior review of exports, surveillance, and/or facilitated the for acquiring and attempting to acquire re-exports or transfers (in-country) of export of items by China that aid U.S.-origin items in support of programs items subject to the EAR involving these repressive regimes around the world, for the People’s Liberation Army. This persons and companies. contrary to U.S. foreign policy interests. activity is contrary to national security The ERC determined to add the The ERC determined that China and foreign policy interests under entities Zigma Aviation Services; MRS Communications Construction section 744.11(b) of the EAR. GmbH; France Tech Services; Company Ltd. has enabled China to The ERC determined to add the entity Maintenance Services International reclaim and militarize disputed outposts Tongfang Technology Ltd. (NucTech) to GmbH; and Satori Corporation to the in the South China Sea, which has been the Entity List for its involvement in Entity List on the basis of actions and detrimental to U.S. national security. In activities that are contrary to the activities they have engaged in that are particular, this entity has engaged in national security interests of the United contrary to the national security and reclaiming land at Mischief Reef, which States. Specifically, the ERC determined foreign policy interests of the United pursuant to a July 12, 2016, ruling by NucTech’s lower performing equipment States. Specifically, these companies the Hague-based Permanent Court of impair U.S. efforts to counter illicit provided aircraft parts, without the Arbitration, was determined to be part international trafficking in nuclear and necessary licenses, to one entity— of the Philippine exclusive economic other radioactive materials. Lower Mahan Air—that is listed as a Specially zone and continental shelf. In addition, performing equipment means less Designated National per the U.S. the ERC determined that Chongqing stringent cargo screening, raising the Department of Treasury’s Office of Chuandong Shipbuilding Industry Co., risk of proliferation. Foreign Assets Control. Ltd.; CSSC Huangpu Wenchong The ERC determined that Beijing The ERC determined to add OOO Shipbuilding Co., Ltd.; Guangxin University of Posts and Sovtest Comp; Cosmos Complect; Multi Shipbuilding and Heavy Industry Co., Telecommunications directly Technology Integration Group EOOD Ltd.; and Guangzhou Taicheng participates in the research and (MTIG) and four associated individuals Shipbuilding Industry Co., Ltd. are development, and production, of Dimitar Milanov Dimitrov; Ilias involved in China’s efforts to assert its advanced weapons and advanced Kharesovich Sabirov; Mariana Marinova unlawful maritime claims in the South weapons systems in support of People’s Gargova; and Milan Dimitrov; to the China Sea, as well as efforts to Liberation Army modernization, which Entity List on the basis of their attempts intimidate and coerce other coastal poses a direct threat to U.S. national to procure and re-export U.S.-origin states from accessing and developing security. These entities enabled the items, for activities contrary to the offshore marine resources. As a result, People’s Republic of China to advance national security and foreign policy those entities are added to the Entity military modernization goals, in part, interests of the United States. The ERC List as well. through the import of technology and determined that there is reasonable The ERC determined to add China equipment that is used in developing cause to believe, based on specific and State Shipbuilding Corporation, Ltd. advanced weapons programs in China. articulable facts, that OOO Sovtest (CSSC) 7th Research Academy, CSSC The ERC determined to add ROFS Comp and Cosmos Complect used MTIG 12th Research Institute, CSSC 701st Microsystems; Tianjin Micro Nano as a front company to acquire both Research Institute, CSSC 702nd Manufacturing; Tianjin University; and radiation-hardened parts and other Research Institute, CSSC 703rd Research the individuals Chong Zhou; Huisui sensitive electronic components and re- Institute, CSSC 704th Research Institute, Zhang; Jinping Chen; Wei Pang; and export those U.S.-origin components to CSSC 705th Research Institute, CSSC Zhao Gang because there is reasonable Russia without required licenses. The 707th Research Institute, CSSC 709th cause to believe that these individuals, ERC determined these entities are Research Institute, CSSC 710th Research in coordination with Tianjin University engaging in conduct that poses a risk of Institute, CSSC 711th Research Institute, through its College of Precision violating the EAR such that, pursuant to CSSC 712th Research Institute, CSSC Instruments and Optoelectronic § 744.11(b)(5) of the EAR prior review of 713th Research Institute, CSSC 714th Engineering Tianjin Micro Nano exports and re-exports involving these Research Institute, CSSC 715th Research Manufacturing, and ROFS parties, and the possible imposition of Institute, CSSC 716th Research Institute, Microsystems, systematically license conditions or license denial, CSSC 717th Research Institute, CSSC coordinated and committed more than a enhances BIS’s ability to prevent 718th Research Institute, CSSC 719th dozen instances of theft of trade secrets violations of the EAR. Research Institute, CSSC 723rd Research from U.S. corporations. On April 1, The ERC determined to add the Institute, CSSC 724th Research Institute, 2015, those five individuals were entities Link Lines (Pvt.) Limited and CSSC 725th Research Institute, CSSC indicted on thirty counts including Geo Research to the Entity List on the 726th Research Institute, CSSC 750th conspiracy to commit economic basis of their participation in the Test Center, and CSSC 760th Research espionage, conspiracy to commit theft of procurement and attempted Institute to the Entity List for acquiring trade secrets, economic espionage, procurement of items, to include U.S.- and attempting to acquire U.S.-origin aiding and abetting and theft of trade origin items, for entities on the Entity items in support of programs for the secrets. The indictment stated that List without obtaining the necessary People’s Liberation Army. These individuals associated with ROFS and licenses. activities are contrary to national others developed a scheme by which the The ERC determined to add Sparx Air security and foreign policy interests sources and origins of the trade secrets Ltd., Sky Float Aviation FZE, and Feroz under Section 744.11(b) of the EAR. stolen from Avago and Skyworks would Ahmed Akbar to the Entity List for The ERC determined to add Beijing be disguised and the technology engaging in conduct contrary to the Institute of Technology; Nanjing contained within those trade secrets be national security and foreign policy University of Science and Technology; used by entities in the PRC to develop interests of the United States. Nanjing University of Aeronautics and products for civilian and military use. Specifically, the ERC determined that Astronautics; Nanjing Asset Pursuant to § 744.11(b) of the EAR, the there is reasonable cause to believe, Management Co., Ltd.; and Jiangsu ERC determined that the conduct of based on specific and articulable facts, Hengxiang Science and Education these entities raise sufficient concern that these entities were involved in a

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scheme to falsify information in order to • Mariana Marinova Gargova; • China State Shipbuilding obtain and divert U.S.-origin items • Milan Dimitrov; and Corporation, Limited (CSSC) 719th without authorization. The ERC thereby • Multi Technology Integration Group Research Institute; determined these entities to be EOOD (MTIG). • China State Shipbuilding unreliable recipients of U.S.-origin Corporation, Limited (CSSC) 723rd items. China Research Institute; Pursuant to § 744.11(b), the ERC • AGCU Scientech; • China State Shipbuilding determined that the conduct of the • Beijing Institute of Technology; Corporation, Limited (CSSC) 724th above-described seventy-seven entities • Beijing University of Posts and Research Institute; raises sufficient concerns that prior Telecommunications (BUPT); • China State Shipbuilding review, via the imposition of a license • China Communications Corporation, Limited (CSSC) 725th requirement, of exports, reexports, or Construction Company Ltd.; Research Institute; • transfers (in-country) of all items subject • China National Scientific China State Shipbuilding to the EAR involving these entities, and Instruments and Materials (CNSIM); Corporation, Limited (CSSC) 726th the possible issuance of license denials • China State Shipbuilding Research Institute; • or the possible imposition of license Corporation, Limited (CSSC) 7th China State Shipbuilding conditions on shipments to these Research Academy; Corporation, Limited (CSSC) 750th Test entities, will enhance BIS’s ability to • Center; China State Shipbuilding • prevent violations of the EAR or Corporation, Limited (CSSC) 12th China State Shipbuilding otherwise protect U.S. national security Research Institute; Corporation, Limited (CSSC) 760th or foreign policy interests. • Research Institute; China State Shipbuilding • For the seventy-seven entities added Corporation, Limited (CSSC) 701st Chongqing Chuandong to the Entity List in this final rule, BIS Research Institute; Shipbuilding Industry Co., Ltd.; • Chong Zhou; imposes a license requirement that • China State Shipbuilding • CSSC Huangpu Wenchong applies to all items subject to the EAR. Corporation, Limited (CSSC) 702nd In addition, no license exceptions are Shipbuilding Co., Ltd.; Research Institute; • available for exports, reexports, or • DJI; China State Shipbuilding • Guangxin Shipbuilding and Heavy transfers (in-country) to the persons Corporation, Limited (CSSC) 703rd being added to the Entity List in this Industry Co., Ltd.; Research Institute; • Guangzhou Taicheng Shipbuilding rule. • China State Shipbuilding For two of the seventy-seven Industry Co., Ltd.; Corporation, Limited (CSSC) 704th entities—Geo Research and Link Lines • Huisui Zhang; Research Institute; • (Pvt) Limited—BIS imposes the license Jiangsu Hengxiang Science and • China State Shipbuilding review policy set forth in § 744.2(d) Education Equipment Co., Ltd.; Corporation, Limited (CSSC) 705th • (restrictions on certain nuclear end- Jinping Chen; Research Institute; • uses) of the EAR. For four of the Kuang-Chi Group; • China State Shipbuilding • seventy-seven entities—AGCU Nanjing Asset Management Co., Corporation, Limited (CSSC) 707th Scientech, China National Scientific Ltd.; Research Institute; • Nanjing University of Aeronautics Instruments and Materials (CNSIM), DJI • China State Shipbuilding and Astronautics; and Kuang-Chi Group—BIS imposes a Corporation, Limited (CSSC) 709th • Nanjing University of Science and license review policy of case by case Research Institute; Technology; review for items necessary to detect, • China State Shipbuilding • Ningbo Semiconductor identify and treat infectious disease and International Corporation (NSI); a presumption of denial for all other Corporation, Limited (CSSC) 710th Research Institute; • ROFS Microsystems; items subject to the EAR. For eleven of • • Semiconductor Manufacturing the seventy-seven entities—SMIC and China State Shipbuilding Corporation, Limited (CSSC) 711th International (Beijing) Corporation; ten related entities—BIS imposes a • Research Institute; Semiconductor Manufacturing license review policy of Presumption of • International Corporation (SMIC); Denial for items uniquely required for China State Shipbuilding • Corporation, Limited (CSSC) 712th Semiconductor Manufacturing production of semiconductors at International (Shenzhen) Corporation; advanced technology nodes (10 Research Institute; • • China State Shipbuilding Semiconductor Manufacturing nanometers and below, including International (Tianjin) Corporation; extreme ultraviolet technology) and case Corporation, Limited (CSSC) 713th • Research Institute; Semiconductor Manufacturing by case for all other items. For the other South China Corporation; • China State Shipbuilding sixty entities added to the Entity List by • SJ Semiconductor; Corporation, Limited (CSSC) 714th this rule, BIS imposes a license review • SMIC Holdings Limited; Research Institute; • policy of a presumption of denial. • SMIC Northern Integrated Circuit The acronym ‘‘a.k.a.’’ (also known as) China State Shipbuilding Manufacturing (Beijing) Co., Ltd.; is used in entries on the Entity List to Corporation, Limited (CSSC) 715th • SMIC Semiconductor identify aliases, thereby assisting Research Institute; • Manufacturing (Shanghai) Co., Ltd. exporters, reexporters, and transferors in China State Shipbuilding • Tianjin Micro Nano Manufacturing identifying entities on the Entity List. Corporation, Limited (CSSC) 716th (MNMT); For the reasons described above, this Research Institute; • Tianjin University; • final rule adds the following seventy- China State Shipbuilding • Tongfang NucTech Technology Ltd. seven entities, under a total of seventy- Corporation, Limited (CSSC) 717th • Wei Pang; and eight entries, to the Entity List: Research Institute; • Zhao Gang. • China State Shipbuilding Bulgaria Corporation, Limited (CSSC) 718th France • Dimitar Milanov Dimitrov; Research Institute; • France Tech Services; and

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• Satori Corporation. from the Entity List on the basis of a approaches that maximize net benefits removal request. The entry for Ben (including potential economic, Germany Gurion University was added to the environmental, public health and safety • Maintenance Services International Entity List on February 3, 1997 (62 FR effects, distributive impacts, and (MSI) GmbH; and 4910). This rule also implements a equity). Executive Order 13563 • MRS GmbH. decision of the ERC to remove ‘‘Dow emphasizes the importance of Hong Kong Technology’’ ‘‘Hassan Dow’’ and quantifying both costs and benefits, of • ‘‘Modest Marketing LLC’’, three entities reducing costs, of harmonizing rules, SMIC Hong Kong International located in the U.A.E., from the Entity and of promoting flexibility. This rule Company Limited. List on the basis of removal requests. has been determined to be not Italy The entries for ‘‘Dow Technology’’ and significant for purposes of Executive ‘‘Hassan Dow’’ were added to the Entity Order 12866. This rule is not an • Zigma Aviation. List on February 23, 2016 (81 FR 8829). Executive Order 13771 regulatory action Malta The entry for Modest Marketing LLC because this rule is not significant under • Feroz Ahmed Akbar; and was added to the Entity List on January Executive Order 12866. • Sparx Air Ltd. 26, 2018 (83 FR 3580). The ERC decided 2. Notwithstanding any other to remove these four entries based on provision of law, no person is required Pakistan information BIS received pursuant to to respond to or be subject to a penalty • Geo Research, and § 744.16 of the EAR and the review the for failure to comply with a collection • Link Lines (Pvt.) Limited. ERC conducted in accordance with of information, subject to the procedures described in supplement No. Russia requirements of the Paperwork 5 to part 744. Reduction Act of 1995 (44 U.S.C. 3501 • Cosmos Complect; This final rule implements the et seq.) (PRA), unless that collection of • Ilias Kharesovich Sabirov; and decision to remove the following four • information displays a currently valid OOO Sovtest Comp. entities, consisting of one entity located Office of Management and Budget United Arab Emirates in Israel and three in the U.A.E., from (OMB) Control Number. This rule the Entity List: contains the following collections of • Satori Corporation; and • Sky Float Aviation FZE. Israel information subject to the requirements • of the PRA. These collections have been Revisions to the Entity List Ben Gurion University. approved by OMB under control This final rule revises two existing United Arab Emirates numbers 0694–0088 (Simplified Network Application Processing entries, one under the destination China • Dow Technology; and one under the destination of • Hassan Dow; and System) and 0694–0096 (Five Year Pakistan, as follows: • Modest Marketing LLC. Records Retention Period). The This rule implements a revision to approved information collection under one existing entry for ‘‘China Savings Clause OMB control number 0694–0088 Shipbuilding Group 722nd Research Shipments of items removed from includes license applications, among Institute,’’ first added to the Entity List eligibility for a License Exception or other things, and carries a burden under the destination of China on export or reexport without a license estimate of 29.6 minutes per manual or August 27, 2020 (85 FR 52901). BIS is (NLR) as a result of this regulatory electronic submission for a total burden revising the existing entry under China action that were en route aboard a estimate of 31,833 hours. The approved by revising the name and one alias. The carrier to a port of export or reexport, on information collection under OMB ERC decided to modify the existing December 22, 2020, pursuant to actual control number 0694–0096 includes entry for China Shipbuilding Group orders for export or reexport to a foreign recordkeeping requirements and carries 722nd Research Institute under China to destination, may proceed to that a burden estimate of less than 1 minute reflect its correct organizational destination under the previous per response for a total burden estimate structure. The modification incorporates eligibility for a License Exception or of 248 hours. Specifically, BIS expects nomenclature into the existing Entity export or reexport without a license the burden hours associated with these List entry that standardizes this entry (NLR). collections would increase, slightly, by with the 25 CSSC research institutes 76 hours and 5 minutes (i.e., 150 described above being added in this Export Control Reform Act of 2018 applications × 30.6 minutes per final rule. On August 13, 2018, the President response) for a total estimated cost This rule implements a revision to signed into law the John S. McCain increase of $2,280 (i.e., 76 hours and 5 one existing entry for ‘‘Oriental National Defense Authorization Act for minutes × $30 per hour). The $30 per Engineers,’’ first added to the Entity List Fiscal Year 2019, which included the hour cost estimate for OMB control under the destination of Pakistan on Export Control Reform Act of 2018 number 0694–0088 is consistent with May 26, 2017 (82 FR 24245). BIS is (ECRA) (50 U.S.C. 4801–4852). ECRA the salary data for export compliance revising the existing entry under provides the legal basis for BIS’s specialists currently available through Pakistan by adding four aliases and six principal authorities and serves as the glassdoor.com (glassdoor.com estimates addresses. The ERC determined to authority under which BIS issues this that an export compliance specialist modify the existing entry for Oriental rule. makes $55,280 annually, which Engineers under Pakistan to account for computes to roughly $26.58 per hour). Rulemaking Requirements additional aliases and addresses. This increase is not expected to exceed 1. Executive Orders 13563 and 12866 the existing estimates currently Removals From the Entity List direct agencies to assess all costs and associated with OMB control numbers This rule implements a decision of benefits of available regulatory 0694–0088 and 0694–0096. Any the ERC to remove ‘‘Ben Gurion alternatives and, if regulation is comments regarding the collection of University,’’ one entity located in Israel, necessary, to select regulatory information associated with this rule,

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including suggestions for reducing the Scientific Instruments and Materials Ltd.,’’ ‘‘Huisui Zhang,’’ ‘‘Jiangsu burden, may be sent to https:// (CNSIM),’’ ‘‘China State Shipbuilding Hengxiang Science and Education www.reginfo.gov/public/do/PRAMain. Corporation, Limited (CSSC) 7th Equipment Co., Ltd.,’’ ‘‘Jinping Chen,’’ 3. This rule does not contain policies Research Academy,’’ ‘‘China State ‘‘Kuang-Chi Group,’’ ‘‘Nanjing Asset with Federalism implications as that Shipbuilding Corporation, Limited Management Co., Ltd.,’’ ‘‘Nanjing term is defined in Executive Order (CSSC) 12th Research Institute,’’ ‘‘China University of Aeronautics and 13132. State Shipbuilding Corporation, Limited Astronautics,’’ ‘‘Nanjing University of 4. Pursuant to § 1762 of the Export (CSSC) 701st Research Institute,’’ Science and Technology,’’ ‘‘Ningbo Control Reform Act of 2018, this action ‘‘China State Shipbuilding Corporation, Semiconductor International is exempt from the Administrative Limited (CSSC) 702nd Research Corporation (NSI),’’ ‘‘ROFS Procedure Act (5 U.S.C. 553) Institute,’’ ‘‘China State Shipbuilding Microsystems,’’ ‘‘Semiconductor requirements for notice of proposed Corporation, Limited (CSSC) 703rd Manufacturing International (Beijing) rulemaking, opportunity for public Research Institute,’’ ‘‘China State Corporation,’’ ‘‘Semiconductor participation, and delay in effective Shipbuilding Corporation, Limited Manufacturing International date. (CSSC) 704th Research Institute,’’ Corporation (SMIC),’’ ‘‘Semiconductor 5. Because a notice of proposed ‘‘China State Shipbuilding Corporation, Manufacturing International (Shenzhen) rulemaking and an opportunity for Limited (CSSC) 705th Research Corporation,’’ ‘‘Semiconductor public comment are not required to be Institute,’’ ‘‘China State Shipbuilding Manufacturing International (Tianjin) given for this rule by 5 U.S.C. 553, or Corporation, Limited (CSSC) 707th Corporation,’’ ‘‘Semiconductor by any other law, the analytical Research Institute,’’ ‘‘China State Manufacturing South China requirements of the Regulatory Shipbuilding Corporation, Limited Corporation,’’ ‘‘SJ Semiconductor,’’ Flexibility Act, 5 U.S.C. 601, et seq., are (CSSC) 709th Research Institute,’’ ‘‘SMIC Holdings Limited,’’ ‘‘SMIC Hong not applicable. Accordingly, no ‘‘China State Shipbuilding Corporation, Kong International Company Limited,’’ regulatory flexibility analysis is required Limited (CSSC) 710th Research ‘‘SMIC Northern Integrated Circuit and none has been prepared. Institute,’’ ‘‘China State Shipbuilding Manufacturing (Beijing) Co., Ltd.,’’ List of Subjects in 15 CFR Part 744 Corporation, Limited (CSSC) 711th ‘‘SMIC Semiconductor Manufacturing Research Institute,’’ ‘‘China State (Shanghai) Co., Ltd,’’ ‘‘Tianjin Micro Exports, Reporting and recordkeeping Nano Manufacturing (MNMT),’’ requirements, Terrorism. Shipbuilding Corporation, Limited (CSSC) 712th Research Institute,’’ ‘‘Tianjin University,’’ ‘‘Tongfang Accordingly, part 744 of the Export ‘‘China State Shipbuilding Corporation, NucTech Technology, Ltd.’’ ‘‘Wei Administration Regulations (15 CFR Limited (CSSC) 713th Research Pang,’’ ‘‘Zhao Gang,’’; and parts 730–774) is amended as follows: Institute,’’ ‘‘China State Shipbuilding ■ ii. By removing the entry for ‘‘China PART 744—[AMENDED] Corporation, Limited (CSSC) 714th Shipbuilding Group 722nd Research Research Institute,’’ ‘‘China State Institute’’; ■ 1. The authority citation for 15 CFR Shipbuilding Corporation, Limited ■ c. Under FRANCE, by adding in part 744 is revised to read as follows: (CSSC) 715th Research Institute,’’ alphabetical order entries for ‘‘France Authority: 50 U.S.C. 4801–4852; 50 U.S.C. ‘‘China State Shipbuilding Corporation, Tech Services’’ and ‘‘Satori 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. Limited (CSSC) 716th Research Corporation’’; 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 Institute,’’ ‘‘China State Shipbuilding ■ d. Under GERMANY, by adding in et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR Corporation, Limited (CSSC) 717th alphabetical order entries for 20947, 3 CFR, 1978 Comp., p. 179; E.O. Research Institute,’’ ‘‘China State ‘‘Maintenance Services International 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. Shipbuilding Corporation, Limited (MSI) GmbH’’ and ‘‘MRS GmbH’’; 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 (CSSC) 718th Research Institute,’’ ■ e. Under HONG KONG, by adding in Comp., p. 950; E.O. 13026, 61 FR 58767, 3 ‘‘China State Shipbuilding Corporation, alphabetical order an entry for ‘‘SMIC CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR Limited (CSSC) 719th Research 45167, 3 CFR, 1998 Comp., p. 208; E.O. Hong Kong International Company 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. Institute,’’ ‘‘China State Shipbuilding Limited’’; 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Corporation, Ltd. (CSSC) 722nd ■ f. Under ISRAEL, by removing the Comp., p. 786; Notice of September 18, 2020, Research Institute’’, ‘‘China State entry for ‘‘Ben Gurion University, 85 FR 59641 (September 22, 2020); Notice of Shipbuilding Corporation, Limited Israel’’; November 12, 2020, 85 FR 72897 (November (CSSC) 723rd Research Institute,’’ ■ g. Under ITALY, by adding in 13, 2020). ‘‘China State Shipbuilding Corporation, alphabetical order an entry for ‘‘Zigma ■ 2. Supplement No. 4 to part 744 is Limited (CSSC) 724th Research Aviation’’; Institute,’’ ‘‘China State Shipbuilding amended: ■ h. Adding in alphabetical order an ■ Corporation, Limited (CSSC) 725th a. Under BULGARIA, by adding in entry for MALTA, consisting of the Research Institute,’’ ‘‘China State alphabetical order entries for ‘‘Dimitar entities ‘‘Feroz Ahmed Akbar’’ and Shipbuilding Corporation, Limited Milanov Dimitrov,’’ ‘‘Milan Dimitrov,’’ ‘‘Sparx Air Ltd.’’; (CSSC) 726th Research Institute,’’ ‘‘Mariana Marinova Gargova,’’ and ■ ‘‘China State Shipbuilding Corporation, i. Under PAKISTAN: ‘‘Multi Technology Integration Group ■ EOOD (MTIG)’’; Limited (CSSC) 750th Test Center,’’ i. By adding in alphabetical order the ■ b. Under CHINA, PEOPLE’S ‘‘China State Shipbuilding Corporation, entries for ‘‘Geo Research’’ and ‘‘Link REPUBLIC OF: Limited (CSSC) 760th Research Lines (Pvt.) Limited’’; and ■ i. By adding in alphabetical order Institute,’’ ‘‘Chongqing Chuandong ■ ii. By revising the entry for ‘‘Oriental entries for ‘‘AGCU Scientech,’’ ‘‘Beijing Shipbuilding Industry Co Ltd.,’’ ‘‘Chong Engineers’’; Institute of Technology,’’ ‘‘Beijing Zhou,’’ ‘‘CSSC Huangpu Wenchong ■ j. Under RUSSIA, by adding in University of Posts and Shipbuilding Co., Ltd.,’’ ‘‘DJI,’’ alphabetical order entries for ‘‘Cosmos Telecommunications (BUPT),’’ ‘‘China ‘‘Guangxin Shipbuilding and Heavy Complect,’’ ‘‘Ilias Kharesovich Sabirov,’’ Communications Construction Industry Co., Ltd.,’’ ‘‘Guangzhou and ‘‘OOO Sovtest Comp’’; and Company Ltd.,’’ ‘‘China National Taicheng Shipbuilding Industry Co., ■ k. Under UNITED ARAB EMIRATES:

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■ i. By removing the entries for ‘‘Dow ■ ii. By adding in alphabetical order Supplement No. 4 to Part 744—Entity Technology,’’ ‘‘Hassan Dow,’’ and entries for ‘‘Satori Corporation’’ and List ‘‘Modest Marketing LLC’’; and ‘‘Sky Float Aviation FZE’’; The additions and revisions read as * * * * * follows:

License License Federal Register Country Entity requirement review policy citation

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BULGARIA ...... Dimitar Milanov Dimitrov, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE G.K. Dianabad, BL.57, ET.11, AP.74. EAR. (See § 744.11 of NUMBER] 12/22/2020. Sofia, Bulgaria. the EAR). ****** Mariana Marinova Gargova, G.K. All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Dianabad, BL. 32, VH. V, AP. 53, EAR. (See § 744.11 of NUMBER] 12/22/2020. 1172 Sofia, Bulgaria; and UL.132, the EAR). NO.14, ET.2, AP.11, Sofia, Bulgaria. ****** Milan Dimitrov, UL.132, NO.14, ET.2, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE AP.11, Sofia, Bulgaria. EAR. (See § 744.11 of NUMBER] 12/22/2020. the EAR). Multi Technology Integration Group All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE EOOD (MTIG), G.K. Dianabad, BL. EAR. (See § 744.11 of NUMBER] 12/22/2020. 32, VH. V, AP. 53, 1172 Sofia, Bul- the EAR). garia; and UL 132 No 14 AP 11, Sofia, Bulgaria. ******

*******

CHINA, PEO- ****** CHINA, PEO- AGCU Scientech, a.k.a. the following All items subject to the Case-by-case review for 85 FR [INSERT FR PAGE PLE’S RE- two aliases: EAR. (See § 744.11 of items necessary to de- NUMBER] 12/22/2020. PUBLIC OF —AGCU ScienTech Incorporation; and the EAR). tect, identify and treat —Wuxi Zhongde Meilian Biotechnology infectious disease; Pre- Co., Ltd. sumption of denial for No. 18–1, Wenhui Road, Huishan Eco- all other items subject nomic Development Zone, Wuxi City, to the EAR. 214000 China. ****** Beijing Institute of Technology, No. 5 All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE South Zhongguancun Street, Haidian EAR. (See § 744.11 of NUMBER] 12/22/2020. District, Beijing, China. the EAR). ****** Beijing University of Posts and Tele- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE communications (BUPT), No. 10 EAR. (See § 744.11 of NUMBER] 12/22/2020. Xitucheng Rd, Haidian District Beijing the EAR). 100876, China. ****** China Communications Construction All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Company Ltd., No. 85 EAR. (See § 744.11 of NUMBER] 12/22/2020. Deshengmenwai St. Xicheng District, the EAR). Beijing 100088, China. ****** China National Scientific Instruments All items subject to the Case-by-case review for 85 FR [INSERT FR PAGE and Materials (CNSIM), a.k.a. the fol- EAR. (See § 744.11 of items necessary to de- NUMBER] 12/22/2020. lowing four aliases: the EAR). tect, identify and treat —CSIMC; infectious disease; Pre- —China National Scientific Instruments sumption of denial for and Materials Corporation; all other items subject —China Scientific Equipment Co., Ltd.; to the EAR. and —Sinopharm Equipment. Building 1, No. 19, Taiyanggong Road, Chaoyang District, Beijing, 100028, China; and 20 Chichunlu Road, Bei- jing, China; and 12 Caixiangdong Road, Beijing, China. ******

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China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 7th Research Acad- EAR. (See § 744.11 of NUMBER] 12/22/2020. emy, a.k.a., the following two aliases: the EAR). —China Shipbuilding Industry Group Co., Ltd. (CSIC) 7th Research Acad- emy; and —China Ship Research and Develop- ment Academy. No. 2 Shuangquan Baojia, Chaoyang District, Beijing, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 12th Research Insti- EAR. (See § 744.11 of NUMBER] 12/22/2020. tute, a.k.a., the following two aliases: the EAR). —China Shipbuilding Industry Group Co., Ltd. (CSIC) 12th Research Insti- tute; and —Thermal Processing Technology Re- search Institute, a.k.a., Hot Working Technology Research Institute. Xicheng District, Xiping, Shaanxi Prov- ince; and Mailbox No. 44, Xingping, Shaanxi Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 701st Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 701st Research In- stitute; and —China Ship Design and Research Center. No. 268 Ziyang Road, Wuchang Dis- trict, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 702nd Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 702nd Research In- stitute; and —China Ship Scientific Research Cen- ter (CSSRC). No. 222 Shanshui East Road, Binhu District, Wuxi, Jiangsu Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 703rd Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 703rd Research In- stitute; and —Harbin Marine Boiler and Turbine Research Institute. No. 35 Honghu Road, Daoli District, Harbin; and No. 108 Hongqi Avenue, Xiangfang District, Harbin, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 704th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 704th Research In- stitute; and —Shanghai Marine Equipment Re- search Institute (SMERI). No. 10 Hengshan Road, Xuhui District, Shanghai, China; and No. 160 Xinpan Road, Shanghai, China.

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China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 705th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 705th Research In- stitute; and —Xi ’an Precision Machinery Research Institute. No. 18, Gaoxin 1st Road, High-tech Development Zone, Xi’an, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 707th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 707th Research In- stitute; and —Tianjin Navigational Instrument Re- search Institute. No. 268, Dingzigu 1st Road, Hongqiao District, Tianjin, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 709th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 709th Research In- stitute; and —Wuhan Digital Engineering Institute. No. 718, Luoyu Road, Hongshan Dis- trict, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 710th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 710th Research In- stitute; and —Yichang Testing Technology Re- search Institute a.k.a. Yichang Insti- tute of Testing Technology. No. 58 Shengli 3rd Road, Yichang, Hubei Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 711th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 711th Research In- stitute; and —Shanghai Marine Diesel Engine Re- search Institute. No. 3111 Huaning Road, Minhang Dis- trict, Shanghai, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 712th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 712th Research In- stitute; and —Wuhan Marine Electric Propulsion Equipment Research Institute. Nanhu Garden City, Hongshan District, Wuhan City, Hubei Province; and Nanhu Steam School Courtyard, Wuchang District, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 713th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases:

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—China Shipbuilding Industry Group Co., Ltd. (CSIC) 713th Research In- stitute; and —Zhengzhou Institute of Mechanical and Electrical Engineering. No. 126 Jingguang Middle Road, Zhengzhou, Henan Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 714th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 714th Research In- stitute; and —Ship Information Research Center. No. 2, Shuangquan Baojia, Chaoyang District, Beijing, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 715th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 715th Research In- stitute; and —Hangzhou Institute of Applied Acous- tics. No. 715, Pingfeng Street, Xihu District, Hangzhou, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 716th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 716th Research In- stitute; and —Jiangsu Institute of Automation. No. 18, Shenghu Road, Lianyungang, Jiangsu Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 717th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following three the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 717th Research In- stitute; —Huazhong Institute of Optoelectronics Technology; and —Huazhong Photoelectric Technology Research Institute. No. 981, Xiongchu Street, Hongshan District, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 718th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 718th Research In- stitute; and —Handan Purification Equipment Re- search Institute. No. 17 Zhanhan Road, Handan, Hebei Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 719th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 719th Research In- stitute; and —Wuhan Second Ship Design Re- search Institute.

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No. 19, Yangqiaohu Avenue, Zanglong Island Development Zone, Jiangxia District, Wuhan, Hubei Province; and No. 450 Zhongshan Road, Wuchang District, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR 52901; 08/27/2020. Limited. (CSSC) 722nd Research In- EAR. (See § 744.11 of 85 FR [INSERT FR PAGE stitute, a.k.a., the following two the EAR). NUMBER] 12/22/2020. aliases: —China Shipbuilding Industry Group Co., Limited. (CSIC) 722 Institute; and —Wuhan Ship Communication Re- search Institute. No. 312 Luoyu Road, Hongshan Dis- trict, Wuhan, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 723rd Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 723rd Research In- stitute; and —Yangzhou Marine Electronic Instru- ment Research Institute. No. 26, Nanhexia, Guangling District, Yangzhou, Jiangsu Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 724th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 724th Research In- stitute; and —Nanjing Ship Radar Research Insti- tute. No. 30, Changqing Street, Jiangning District, Nanjing, Jiangsu Province, China; and No. 346 Zhongshan North Road, Nanjing, Jiangsu Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 725th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 725th Research In- stitute; and —Luoyang Institute of Ship Materials. No.169, Binhe South Road, Luolong District, Luoyang, Henan Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 726th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 726th Research In- stitute; and —Shanghai Ship Electronic Equipment Research Institute. No. 5200 Jindu Road, Minhang District, Shanghai, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 750th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following two the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 750th Test Center; and —Kunming Marine Equipment Re- search and Test Center.

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No. 3, Renmin East Road, Panlong District, Kunming, Yunnan Province, China. China State Shipbuilding Corporation, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Limited (CSSC) 760th Research In- EAR. (See § 744.11 of NUMBER] 12/22/2020. stitute, a.k.a., the following three the EAR). aliases: —China Shipbuilding Industry Group Co., Ltd. (CSIC) 760th Research In- stitute; —Dalian Institute of Measurement and Control Technology; and —Dalian Scientific Test and Control In- stitute. No. 16 Binhai Street, Zhongshan Dis- trict, Dalian, Liaoning Province, China. ****** Chongqing Chuandong Shipbuilding In- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE dustry Co Ltd., Shuanghekou, Lidu EAR. (See § 744.11 of NUMBER] 12/22/2020. Town, Fuling District, Chongqing, the EAR). China 408102. ****** Chong Zhou, Room 602, Building No. All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE 4, Jimen East, Haidian District, Bei- EAR. (See § 744.11 of NUMBER] 12/22/2020. jing 100081. the EAR). ****** CSSC Huangpu Wenchong Ship- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE building Co., Ltd., No. 188 EAR. (See § 744.11 of NUMBER] 12/22/2020. Changzhou Road, Huangpu District, the EAR). Guangzhou, China. ****** DJI, a.k.a., the following four aliases: All items subject to the Case-by-case review for 85 FR [INSERT FR PAGE —Shenzhen DJI Innovation Technology EAR. (See § 744.11 of items necessary to de- NUMBER] 12/22/2020. Co., Ltd.; the EAR). tect, identify and treat —SZ DJI Technology Co., Ltd.; infectious disease; Pre- —Shenzhen DJI Sciences and Tech- sumption of denial for nologies Ltd.; and all other items subject —Da-Jiang Innovations. to the EAR. 14 Floor, West Wing, Skyworth Semi- conductor Design Building, No. 18 Gaoxin South 4th Ave, Nanshan Dis- trict, Shenzhen, China 518057. ****** Guangxin Shipbuilding and Heavy In- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE dustry Co., Ltd., Comprehensive Of- EAR. (See § 744.11 of NUMBER] 12/22/2020. fice, No. 32 Cuizhu Road, Cuiheng the EAR). New District, Zhongshan City, Guangdong Province, China 528437. ****** Guangzhou Taicheng Shipbuilding In- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE dustry Co., Ltd., Dongdao Village, EAR. (See § 744.11 of NUMBER] 12/22/2020. Dongyong Town, Nansha District, the EAR). Guangzhou. ****** Huisui Zhang, Room 204, Building 25, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE FuRen Ming Yuan, ShengGu Bei Li, EAR. (See § 744.11 of NUMBER] 12/22/2020. ChaoYang District, Beijing, China the EAR). 100029. ****** Jiangsu Hengxiang Science and Edu- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE cation Equipment Co., Ltd., a.k.a., EAR. (See § 744.11 of NUMBER] 12/22/2020. the following one alias: the EAR). —Jiangsu Southern Airlines Hengxiang Co., Ltd. Ground Floor, Building 67, No. 29 Yudao Street, Nanjing, Jiangsu. ******

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Jinping Chen, No. 92 Weijin Road, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Tianjin, China 300072; and 3rd Floor, EAR. (See § 744.11 of NUMBER] 12/22/2020. Room 316, A2 Building, Tianjin Uni- the EAR). versity Science Park, No. 80, 4th Av- enue, Tianjin Economic Development Area (TEDA), Tianjin, China. ****** Kuang-Chi Group; a.k.a. the following All items subject to the Case-by-case review for 85 FR [INSERT FR PAGE two aliases: EAR. (See § 744.11 of items necessary to de- NUMBER] 12/22/2020. —Shenzhen Guangqi Group; and the EAR). tect, identify and treat —Guangqi Science Co., Ltd. Software infectious disease; Pre- Building, No. 9, Gaoxinzhong Road, sumption of denial for Nanshan District, Shenzhen 518057 all other items subject China. to the EAR. ****** Nanjing Asset Management Co., Ltd., All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE No. 29 Yudao Street, Nanjing, Jiangsu. EAR. (See § 744.11 of NUMBER] 12/22/2020. the EAR). ****** Nanjing University of Aeronautics and All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Astronautics, No. 29 Yudao Street, EAR. (See § 744.11 of NUMBER] 12/22/2020. Nanjing, Jiangsu; and No. 29 the EAR). Jiangjun Avenue, Jiangning District, Nanjing, Jiangsu; and No. 29 Binhe East Road, Liyang, Jiangsu. Nanjing University of Science and All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Technology, No. 200 Xiaolingwei EAR. (See § 744.11 of NUMBER] 12/22/2020. Street, Xuanwu District, Nanjing, the EAR). Jiangsu; and No. 89 Wenlan Road, Qixia District, Nanjing, Jiangsu. ****** Ningbo Semiconductor International All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE Corporation (NSI), No. 331–335 Anju EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. Road, Xiaogang Street, Beilun Dis- the EAR). for production of semi- trict, Ningbo, Zhejiang; and conductors at advanced 1MC07, Jiuzhou Center, No. 95, Lane technology nodes (10 85, Cailun Road, Pudong New Area, nanometers and below, Shanghai. including extreme ultra- violet technology); Case by case for all other items. ****** ROFS Microsystems, No. 92 Weijin All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Road, Tianjin, China 300072; and EAR. (See § 744.11 of NUMBER] 12/22/2020. 3rd Floor, Room 316, A2 Building, the EAR). Tianjin University Science Park, No. 80, 4th Avenue, Tianjin Economic Development Area (TEDA), Tianjin, China. ****** Semiconductor Manufacturing Inter- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE national (Beijing) Corporation, a.k.a., EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. the following one alias: the EAR). for production of semi- —SMIC Beijing. conductors at advanced No. 18 Wen Chang Road, Beijing Eco- technology nodes (10 nomic-Technological Development nanometers and below, Area, Beijing 100176. including extreme ultra- violet technology); Case by case for all other items. Semiconductor Manufacturing Inter- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE national Corporation (SMIC), a.k.a., EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. the following three aliases: the EAR). for production of semi- —Semiconductor Manufacturing Inter- conductors at advanced national (Shanghai) Corporation; technology nodes (10 —SMIC Shanghai; and nanometers and below, —Semiconductor Mfg International including extreme ultra- Corp. violet technology); Case No. 18 Zhang Jiang Road, Pudong by case for all other New Area, Shanghai 201203. items.

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Semiconductor Manufacturing Inter- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE national (Shenzhen) Corporation, EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. a.k.a., the following one alias: the EAR). for production of semi- —SMIC Shenzhen. conductors at advanced No. 18 Gaoxin Road, Export Proc- technology nodes (10 essing Zone, Pingshan New Area, nanometers and below, Shenzhen 518118; and 1st Lanzhu including extreme ultra- Avenue, Pingshan Town, Longgang violet technology); Case District, Shenzhen, Guangdong, by case for all other 518118; and Qier Road, Export Proc- items. essing Zone, Pingshan New Area, Shenzhen. Semiconductor Manufacturing Inter- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE national (Tianjin) Corporation, a.k.a., EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. the following one alias: the EAR). for production of semi- —SMIC Tianjin. conductors at advanced No. 19 Xing Hua Avenue, Xiqing Eco- technology nodes (10 nomic Development Area, Tianjin nanometers and below, 300385. including extreme ultra- violet technology); Case by case for all other items. Semiconductor Manufacturing South All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE China Corporation, a.k.a., the fol- EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. lowing four aliases: the EAR). for production of semi- —SMSC; conductors at advanced —SMIC Southern Integrated Circuit technology nodes (10 Manufacturing Co., Ltd.; nanometers and below, —SMIC South; and including extreme ultra- —SMIC Southern. violet technology); Case 5th Floor, Building 3, No.18 Zhang by case for all other Jiang Road, China (Shanghai) Pilot items. Free Trade Zone. ****** SJ Semiconductor, a.k.a., the following All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE two aliases: EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. —SJ Semiconductor (Jiangyin) Corp.; the EAR). for production of semi- and conductors at advanced —SJ Jiangyin. technology nodes (10 6 Dongsheng West Road, Building A8– nanometers and below, 4, Jiangyin City, Jiangsu Province including extreme ultra- 214437. violet technology); Case by case for all other items. SMIC Holdings Limited, Building 1, No. All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE 1059 Dangui Road, China (Shang- EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. hai) Pilot Free Trade Zone, Shang- the EAR). for production of semi- hai. conductors at advanced technology nodes (10 nanometers and below, including extreme ultra- violet technology); Case by case for all other items. SMIC Northern Integrated Circuit Man- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE ufacturing (Beijing) Co., Ltd., a.k.a., EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. the following two aliases: the EAR). for production of semi- —Semiconductor Manufacturing North conductors at advanced China (Beijing) Corporation; and technology nodes (10 —SMIC North. nanometers and below, Building 9, No. 18 Wenchang Avenue, including extreme ultra- Beijing Economic and Technological violet technology); Case Development Zone, Beijing. by case for all other items.

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License License Federal Register Country Entity requirement review policy citation

SMIC Semiconductor Manufacturing All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE (Shanghai) Co., Ltd., a.k.a., the fol- EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. lowing one alias: the EAR). for production of semi- —Suzhou Design Center. conductors at advanced Room 602, Building 1, No.158 Suya technology nodes (10 Road, Suzhou Industrial Park. nanometers and below, including extreme ultra- violet technology); Case by case for all other items. ****** Tianjin Micro Nano Manufacturing All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE (MNMT), 3rd Floor, Room 316, A2 EAR. (See § 744.11 of NUMBER] 12/22/2020. Building, Tianjin University Science the EAR). Park, No. 80, 4th Avenue, Tianjin Economic Development Area (TEDA), Tianjin, China. Tianjin University, No. 92 Weijin Road, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Tianjin, China 300072. EAR. (See § 744.11 of NUMBER] 12/22/2020. the EAR). ****** Tongfang NucTech Technology Ltd., All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE a.k.a. the following alias: EAR. (See § 744.11 of NUMBER] 12/22/2020. —NucTech. the EAR). Second Floor, Building A, Tongfang Skyscraper, Shuangqing Road, Haidian District, Beijing, China ****** Wei Pang, No. 92 Weijin Road, Tianjin, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE China 300072; and 3rd Floor, Room EAR. (See § 744.11 of NUMBER] 12/22/2020. 316, A2 Building, Tianjin University the EAR). Science Park, No. 80, 4th Avenue, Tianjin Economic Development Area (TEDA), Tianjin, China. ****** Zhao Gang, No. 92 Weijin Road, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Tianjin, China 300072; and 3rd Floor, EAR. (See § 744.11 of NUMBER] 12/22/2020. Room 316, A2 Building, Tianjin Uni- the EAR). versity Science Park, No. 80, 4th Av- enue, Tianjin Economic Development Area (TEDA), Tianjin, China. ******

*******

FRANCE ...... ****** France Tech Services, a.k.a., the fol- For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE lowing one alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —France Technology Services. of the EAR). 73 Rue Jean Jaures 92800 Puteaux, France. ****** Satori Corporation, a.k.a., the following For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE one alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —Satori SAS. of the EAR). Zone Musie 4–6 rue de Rome BP 151, Aeroport du Bourget 93352 Le Bourget Cedex, France, and 57 Ave- nue jean Monnet Greenpark, 31770, Colomiers, France, and Aeroport Du Bourget Batiment No. 66, BP 151, Le Bourget, France (See alternate ad- dress under U.A.E.).

*******

GERMANY ...... ******

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License License Federal Register Country Entity requirement review policy citation

Maintenance Services International For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE (MSI) GmbH, a.k.a., the following two the EAR. (See § 744.11 NUMBER] 12/22/2020. aliases: of the EAR). —MSI Aircraft Maintenance Services International GmbH & Co. KG; and —MSI International GmBH and Com- pany. Pommernstrasse 8 65428, Ruesselsheim, Germany; and Kobaltstrasse 2–4 FZS1 BH02, Russelssheim, Germany; and Parlerstrasse 18, Stuttgart, Germany. ****** MRS GmbH, a.k.a., the following one For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —MRS International. of the EAR). Wiener Strasse 23 A Regensburg, Ger- many 93065; and Gewerhofstrasse 11 Essen, Germany 45145. ******

*******

HONG KONG ... ****** SMIC Hong Kong International Com- All items subject to the Presumption of denial for 85 FR [INSERT FR PAGE pany Limited, a.k.a., the following EAR. (See § 744.11 of items uniquely required NUMBER] 12/22/2020. one alias: the EAR). for production of semi- —SMIC Hong Kong. conductors at advanced Suite 3003, 30th Floor, No. 9 Queen’s technology nodes (10 Road Central Hong Kong. nanometers and below, including extreme ultra- violet technology); Case by case for all other items. ******

*******

ITALY ...... ****** Zigma Aviation, a.k.a., the following For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE one alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —Zigma Aviation Services. of the EAR). Viasalettuol, No. 12 Venezia Mestre, Italy.

*******

MALTA ...... Feroz Ahmed Akbar, 116/8 San Juan For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE St., Georges Road, St. Julians, STJ the EAR. (See § 744.11 NUMBER] 12/22/2020. 3203, Malta. of the EAR). Sparx Air Ltd., For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE 116/8 San Juan St Georges Road, the EAR. (See § 744.11 NUMBER] 12/22/2020. ST. Julians, STJ 3203, Malta. of the EAR).

*******

PAKISTAN ...... ****** Geo Research, 136–B Faisal Town, La- For all items subject to See § 744.2(d) of the EAR 85 FR [INSERT FR PAGE hore, Pakistan; and 102–G Block the EAR. (See § 744.11 NUMBER] 12/22/2020. Model Town, Lahore, Pakistan. of the EAR). ****** Link Lines (Pvt.) Limited, a.k.a., the fol- For all items subject to See § 744.2(d) of the EAR 85 FR [INSERT FR PAGE lowing one alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —Link Lines. of the EAR).

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License License Federal Register Country Entity requirement review policy citation

1st Floor, Flat B, 11 Main Gulberg, Ghaus-Ul-Azam Road, Lahore, Paki- stan; and VIP Square Plaza, 1st Floor, Office No. 3, 1–8 Markaz, Islamabad, Pakistan; and 1st Floor, 3-Sultana Arcade, Gulberg III, La- hore, Pakistan; and 17-Chaman Chambers, Nishter Road, Lahore, Pakistan. ****** Oriental Engineers, a.k.a., the following For all items subject to Presumption of denial ...... 82 FR 24245, four aliases: the EAR. (See § 744.11 5/26/17. —Oriental Engineers Pvt. Ltd.; of the EAR). 85 FR [INSERT FR PAGE —Oriental Engineers Services; NUMBER] 12/22/2020. —Advance Technologies; and —Advanced Technologies. —11–B Main Gulberg, Lahore, Paki- stan; and 1st Floor, Flat B, 11 Main Gulberg, Ghaus-Ul-Azam Road, La- hore, Pakistan; and 14 Nishter Road, Lahore, Pakistan; and LG–7 Eden Heights 3–A and 6–A, Main Jail Road, Gulberg, Lahore, Pakistan; and VIP Square Plaza, 1st Floor, Of- fice No. 3, I–8 Markez, Islamabad, Pakistan; and 199–E, Officers Col- ony, Cavalry Ground, Lahore, Cantt, Pakistan; and Office 7, Lower Ground Floor, Eden Heights, Plaza, Jail Road, Gulberg, Lahore 54600, Pakistan. ******

*******

RUSSIA ...... ****** Cosmos Complect, a.k.a., the following All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE three aliases: EAR. (See § 744.11 of NUMBER] 12/22/2020. —Kosmos Komplekt; the EAR). —Cosmos Complect Ltd.; and —COSMOS. Sokolovo-Meshcherskaya Street, Build- ing 14, Office 9, 125466 Moscow, Russia; and Pyatnitskaya 39, building 2, Moscow, 119017, Russia. ****** Ilias Kharesovich Sabirov, All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE Solovjinaya Roscha Str 9–1–86, Mos- EAR. (See § 744.11 of NUMBER] 12/22/2020. cow, Russia. the EAR). ****** OOO Sovtest Comp, a.k.a., the fol- All items subject to the Presumption of denial ...... 85 FR [INSERT FR PAGE lowing one alias: EAR. (See § 744.11 of NUMBER] 12/22/2020. —SOVTEST. the EAR). Sokolovo-Meshcherskaya Street, Build- ing 14, Office 9, 125466 Moscow, Russia. ******

*******

UNITED ARAB ****** EMIRATES Satori Corporation, a.k.a., the following For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE one alias: the EAR. (See § 744.11 NUMBER] 12/22/2020. —Satori SAS. of the EAR). Dubai Silicon Oasis, Apricot Tower, Of- fice 810 P.O. Box 341028, Dubai, U.A.E. (See alternate address under France). ******

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License License Federal Register Country Entity requirement review policy citation

Sky Float Aviation FZE, For all items subject to Presumption of denial ...... 85 FR [INSERT FR PAGE M6 Office 1309, Building R2, the EAR. (See § 744.11 NUMBER] 12/22/2020. Near Urban Line Group, SAIF Zone, of the EAR). P.O. Box 121887, Sharjah, U.A.E. ******

*******

Matthew S. Borman, that document.1 The document Notice of Action Deputy Assistant Secretary for Export described the developing circumstances Given the outbreak and continued Administration. regarding the COVID–19 pandemic and transmission and spread of COVID–19 [FR Doc. 2020–28031 Filed 12–18–20; 11:15 am] stated that, given the outbreak and within the United States and globally, BILLING CODE 3510–33–P continued transmission and spread of the Secretary has determined that the the virus associated with COVID–19 risk of continued transmission and within the United States and globally, spread of the virus associated with DEPARTMENT OF HOMELAND the Secretary had determined that the COVID–19 between the United States SECURITY risk of continued transmission and and Canada poses an ongoing ‘‘specific spread of the virus associated with threat to human life or national U.S. Customs and Border Protection COVID–19 between the United States interests.’’ and Canada posed a ‘‘specific threat to U.S. and Canadian officials have 19 CFR Chapter I human life or national interests.’’ The mutually determined that non-essential Secretary later published a series of travel between the United States and Notification of Temporary Travel notifications continuing such Canada poses additional risk of Restrictions Applicable to Land Ports limitations on travel until 11:59 p.m. transmission and spread of the virus of Entry and Ferries Service Between EST on December 21, 2020.2 associated with COVID–19 and places the United States and Canada The Secretary has continued to the populace of both nations at monitor and respond to the COVID–19 AGENCY: Office of the Secretary, U.S. increased risk of contracting the virus pandemic. As of the week of December Department of Homeland Security; U.S. associated with COVID–19. Moreover, 8, there have been over 65 million Customs and Border Protection, U.S. given the sustained human-to-human confirmed cases globally, with over 1.5 Department of Homeland Security. transmission of the virus, returning to million confirmed deaths.3 There have previous levels of travel between the ACTION: Notification of continuation of been over 15.2 million confirmed and two nations places the personnel temporary travel restrictions. probable cases within the United staffing land ports of entry between the 4 SUMMARY: This document announces the States, over 400,000 confirmed cases in United States and Canada, as well as the 5 decision of the Secretary of Homeland Canada, and over 1.1 million individuals traveling through these 6 Security (Secretary) to continue to confirmed cases in Mexico. ports of entry, at increased risk of temporarily limit the travel of exposure to the virus associated with 1 85 FR 16548 (Mar. 24, 2020). That same day, COVID–19. Accordingly, and consistent individuals from Canada into the United DHS also published notice of the Secretary’s States at land ports of entry along the with the authority granted in 19 U.S.C. decision to temporarily limit the travel of 7 United States-Canada border. Such individuals from Mexico into the United States at 1318(b)(1)(C) and (b)(2), I have travel will be limited to ‘‘essential land ports of entry along the United States-Mexico border to ‘‘essential travel,’’ as further defined in 7 19 U.S.C. 1318(b)(1)(C) provides that travel,’’ as further defined in this that document. 85 FR 16547 (Mar. 24, 2020). ‘‘[n]otwithstanding any other provision of law, the document. 2 See 85 FR 74603 (Nov. 23, 2020); 85 FR 67276 Secretary of the Treasury, when necessary to respond to a national emergency declared under the DATES: These restrictions go into effect (Oct. 22, 2020); 85 FR 59670 (Sept. 23, 2020); 85 FR 51634 (Aug. 21, 2020); 85 FR 44185 (July 22, National Emergencies Act (50 U.S.C. 1601 et seq.) at 12 a.m. Eastern Standard Time (EST) 2020); 85 FR 37744 (June 24, 2020); 85 FR 31050 or to a specific threat to human life or national on December 22, 2020 and will remain (May 22, 2020); 85 FR 22352 (Apr. 22, 2020). DHS interests,’’ is authorized to ‘‘[t]ake any . . . action in effect until 11:59 p.m. EST on also published parallel notifications of the that may be necessary to respond directly to the national emergency or specific threat.’’ On March January 21, 2020. Secretary’s decisions to continue temporarily limiting the travel of individuals from Mexico into 1, 2003, certain functions of the Secretary of the FOR FURTHER INFORMATION CONTACT: the United States at land ports of entry along the Treasury were transferred to the Secretary of Stephanie Watson, Office of Field United States-Mexico border to ‘‘essential travel.’’ Homeland Security. See 6 U.S.C. 202(2), 203(1). Under 6 U.S.C. 212(a)(1), authorities ‘‘related to Operations Coronavirus Coordination See 85 FR 74604 (Nov. 23, 2020); 85 FR 67275 (Oct. 22, 2020); 85 FR 59669 (Sept. 23, 2020); 85 FR Customs revenue functions’’ were reserved to the Cell, U.S. Customs and Border 51633 (Aug. 21, 2020); 85 FR 44183 (July 22, 2020); Secretary of the Treasury. To the extent that any Protection (CBP) at 202–325–0840. 85 FR 37745 (June 24, 2020); 85 FR 31057 (May 22, authority under section 1318(b)(1) was reserved to 2020); 85 FR 22353 (Apr. 22, 2020). the Secretary of the Treasury, it has been delegated SUPPLEMENTARY INFORMATION: to the Secretary of Homeland Security. See Treas. 3 WHO, Coronavirus disease 2019 (COVID–19) Dep’t Order No. 100–16 (May 15, 2003), 68 FR Weekly Epidemiological Update (Dec. 8, 2020), Background 28322 (May 23, 2003). Additionally, 19 U.S.C. available at https://www.who.int/publications/m/ 1318(b)(2) provides that ‘‘[n]otwithstanding any On March 24, 2020, DHS published item/weekly-epidemiological-update-8-december- other provision of law, the Commissioner of U.S. 2020. notice of the Secretary’s decision to Customs and Border Protection, when necessary to 4 temporarily limit the travel of CDC, COVID Data Tracker (accessed Dec. 10, respond to a specific threat to human life or individuals from Canada into the United 2020), available at https://covid.cdc.gov/covid-data- national interests, is authorized to close temporarily tracker/. any Customs office or port of entry or take any other States at land ports of entry along the 5 WHO, COVID–19 Weekly Epidemiological lesser action that may be necessary to respond to United States-Canada border to Update (Dec. 8, 2020). the specific threat.’’ Congress has vested in the ‘‘essential travel,’’ as further defined in 6 Id. Secretary of Homeland Security the ‘‘functions of

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determined that land ports of entry between the United States and Canada, SUMMARY: This document announces the along the U.S.-Canada border will but does apply to passenger rail, decision of the Secretary of Homeland continue to suspend normal operations passenger ferry travel, and pleasure boat Security (Secretary) to continue to and will only allow processing for entry travel between the United States and temporarily limit the travel of into the United States of those travelers Canada. These restrictions are individuals from Mexico into the United engaged in ‘‘essential travel,’’ as defined temporary in nature and shall remain in States at land ports of entry along the below. Given the definition of ‘‘essential effect until 11:59 p.m. EST on January United States-Mexico border. Such travel’’ below, this temporary alteration 21, 2020. This Notification may be travel will be limited to ‘‘essential in land ports of entry operations should amended or rescinded prior to that time, travel,’’ as further defined in this not interrupt legitimate trade between based on circumstances associated with document. 8 the two nations or disrupt critical the specific threat. DATES: These restrictions go into effect supply chains that ensure food, fuel, The Commissioner of U.S. Customs at 12 a.m. Eastern Standard Time (EST) medicine, and other critical materials and Border Protection (CBP) is hereby on December 22, 2020 and will remain reach individuals on both sides of the directed to prepare and distribute in effect until 11:59 p.m. EST on border. appropriate guidance to CBP personnel January 21, 2020. For purposes of the temporary on the continued implementation of the FOR FURTHER INFORMATION CONTACT: alteration in certain designated ports of temporary measures set forth in this Stephanie Watson, Office of Field entry operations authorized under 19 Notification. The CBP Commissioner Operations Coronavirus Coordination U.S.C. 1318(b)(1)(C) and (b)(2), travel may determine that other forms of Cell, U.S. Customs and Border through the land ports of entry and ferry travel, such as travel in furtherance of Protection (CBP) at 202–325–0840. terminals along the United States- economic stability or social order, Canada border shall be limited to constitute ‘‘essential travel’’ under this SUPPLEMENTARY INFORMATION: ‘‘essential travel,’’ which includes, but Notification. Further, the CBP Background is not limited to— Commissioner may, on an On March 24, 2020, DHS published • U.S. citizens and lawful permanent individualized basis and for notice of the Secretary’s decision to residents returning to the United States; humanitarian reasons or for other temporarily limit the travel of • Individuals traveling for medical purposes in the national interest, permit individuals from Mexico into the United purposes (e.g., to receive medical the processing of travelers to the United States at land ports of entry along the treatment in the United States); States not engaged in ‘‘essential travel.’’ United States-Mexico border to • Individuals traveling to attend The Acting Secretary of Homeland Security, Chad F. Wolf, having reviewed ‘‘essential travel,’’ as further defined in educational institutions; 1 • Individuals traveling to work in the and approved this document, has that document. The document United States (e.g., individuals working delegated the authority to electronically described the developing circumstances in the farming or agriculture industry sign this document to Chad R. Mizelle, regarding the COVID–19 pandemic and who must travel between the United who is the Senior Official Performing stated that, given the outbreak and States and Canada in furtherance of the Duties of the General Counsel for continued transmission and spread of such work); DHS, for purposes of publication in the the virus associated with COVID–19 • Individuals traveling for emergency Federal Register. within the United States and globally, response and public health purposes the Secretary had determined that the Chad R. Mizelle, (e.g., government officials or emergency risk of continued transmission and responders entering the United States to Senior Official Performing the Duties of the spread of the virus associated with General Counsel, U.S. Department of COVID–19 between the United States support federal, state, local, tribal, or Homeland Security. territorial government efforts to respond and Mexico posed a ‘‘specific threat to [FR Doc. 2020–28381 Filed 12–21–20; 8:45 am] to COVID–19 or other emergencies); human life or national interests.’’ The • Individuals engaged in lawful cross- BILLING CODE 9112–FP–P Secretary later published a series of border trade (e.g., truck drivers notifications continuing such supporting the movement of cargo limitations on travel until 11:59 p.m. DEPARTMENT OF HOMELAND EST on December 21, 2020.2 between the United States and Canada); SECURITY • Individuals engaged in official The Secretary has continued to monitor and respond to the COVID–19 government travel or diplomatic travel; U.S. Customs and Border Protection • Members of the U.S. Armed Forces, 1 85 FR 16547 (Mar. 24, 2020). That same day, and the spouses and children of 19 CFR Chapter I DHS also published notice of the Secretary’s members of the U.S. Armed Forces, decision to temporarily limit the travel of returning to the United States; and Notification of Temporary Travel individuals from Canada into the United States at • Individuals engaged in military- Restrictions Applicable to Land Ports land ports of entry along the United States-Canada of Entry and Ferries Service Between border to ‘‘essential travel,’’ as further defined in related travel or operations. that document. 85 FR 16548 (Mar. 24, 2020). The following travel does not fall the United States and Mexico 2 See 85 FR 74604 (Nov. 23, 2020); 85 FR 67275 within the definition of ‘‘essential (Oct. 22, 2020); 85 FR 59669 (Sept. 23, 2020); 85 AGENCY: Office of the Secretary, U.S. travel’’ for purposes of this FR 51633 (Aug. 21, 2020); 85 FR 44183 (July 22, Department of Homeland Security; U.S. Notification— 2020); 85 FR 37745 (June 24, 2020); 85 FR 31057 • Individuals traveling for tourism Customs and Border Protection, U.S. (May 22, 2020); 85 FR 22353 (Apr. 22, 2020). DHS Department of Homeland Security. also published parallel notifications of the purposes (e.g., sightseeing, recreation, Secretary’s decisions to continue temporarily gambling, or attending cultural events). ACTION: Notification of continuation of limiting the travel of individuals from Canada into At this time, this Notification does not temporary travel restrictions. the United States at land ports of entry along the United States-Canada border to ‘‘essential travel.’’ apply to air, freight rail, or sea travel See 85 FR 74603 (Nov. 23, 2020); 85 FR 67276 (Oct. 8 DHS is working closely with counterparts in 22, 2020); 85 FR 59670 (Sept. 23, 2020); 85 FR all officers, employees, and organizational units of Mexico and Canada to identify appropriate public 51634 (Aug. 21, 2020); 85 FR 44185 (July 22, 2020); the Department,’’ including the Commissioner of health conditions to safely ease restrictions in the 85 FR 37744 (June 24, 2020); 85 FR 31050 (May 22, CBP. 6 U.S.C. 112(a)(3). future and support U.S. border communities. 2020); 85 FR 22352 (Apr. 22, 2020).

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pandemic. As of the week of December determined that land ports of entry travel’’ for purposes of this 8, there have been over 65 million along the U.S.-Mexico border will Notification— confirmed cases globally, with over 1.5 continue to suspend normal operations • Individuals traveling for tourism 3 million confirmed deaths. There have and will only allow processing for entry purposes (e.g., sightseeing, recreation, been over 15.2 million confirmed and into the United States of those travelers gambling, or attending cultural events). probable cases within the United engaged in ‘‘essential travel,’’ as defined States,4 over 400,000 confirmed cases in below. Given the definition of ‘‘essential At this time, this Notification does not Canada,5 and over 1.1 million travel’’ below, this temporary alteration apply to air, freight rail, or sea travel confirmed cases in Mexico.6 in land ports of entry operations should between the United States and Mexico, not interrupt legitimate trade between but does apply to passenger rail, Notice of Action the two nations or disrupt critical passenger ferry travel, and pleasure boat Given the outbreak and continued supply chains that ensure food, fuel, travel between the United States and transmission and spread of COVID–19 medicine, and other critical materials Mexico. These restrictions are within the United States and globally, reach individuals on both sides of the temporary in nature and shall remain in the Secretary has determined that the border. effect until 11:59 p.m. EST on January risk of continued transmission and For purposes of the temporary 21, 2020. This Notification may be spread of the virus associated with alteration in certain designated ports of amended or rescinded prior to that time, COVID–19 between the United States entry operations authorized under 19 based on circumstances associated with and Mexico poses an ongoing ‘‘specific U.S.C. 1318(b)(1)(C) and (b)(2), travel the specific threat.8 threat to human life or national through the land ports of entry and ferry interests.’’ terminals along the United States- The Commissioner of U.S. Customs U.S. and Mexican officials have Mexico border shall be limited to and Border Protection (CBP) is hereby mutually determined that non-essential ‘‘essential travel,’’ which includes, but directed to prepare and distribute travel between the United States and is not limited to— appropriate guidance to CBP personnel Mexico poses additional risk of • U.S. citizens and lawful permanent on the continued implementation of the transmission and spread of the virus residents returning to the United States; temporary measures set forth in this associated with COVID–19 and places • Individuals traveling for medical Notification. The CBP Commissioner the populace of both nations at purposes (e.g., to receive medical may determine that other forms of increased risk of contracting the virus treatment in the United States); travel, such as travel in furtherance of associated with COVID–19. Moreover, • Individuals traveling to attend economic stability or social order, given the sustained human-to-human educational institutions; constitute ‘‘essential travel’’ under this • transmission of the virus, returning to Individuals traveling to work in the Notification. Further, the CBP previous levels of travel between the United States (e.g., individuals working Commissioner may, on an two nations places the personnel in the farming or agriculture industry individualized basis and for staffing land ports of entry between the who must travel between the United humanitarian reasons or for other United States and Mexico, as well as the States and Mexico in furtherance of purposes in the national interest, permit such work); individuals traveling through these the processing of travelers to the United • Individuals traveling for emergency ports of entry, at increased risk of States not engaged in ‘‘essential travel.’’ exposure to the virus associated with response and public health purposes COVID–19. Accordingly, and consistent (e.g., government officials or emergency The Acting Secretary of Homeland with the authority granted in 19 U.S.C. responders entering the United States to Security, Chad F. Wolf, having reviewed 1318(b)(1)(C) and (b)(2),7 I have support federal, state, local, tribal, or and approved this document, has territorial government efforts to respond delegated the authority to electronically 3 WHO, Coronavirus disease 2019 (COVID–19) to COVID–19 or other emergencies); sign this document to Chad R. Mizelle, Weekly Epidemiological Update (Dec. 8, 2020), • Individuals engaged in lawful cross- who is the Senior Official Performing available at https://www.who.int/publications/m/ border trade (e.g., truck drivers item/weekly-epidemiological-update-8-december- the Duties of the General Counsel for 2020. supporting the movement of cargo DHS, for purposes of publication in the 4 CDC, COVID Data Tracker (accessed Dec. 10, between the United States and Mexico); Federal Register. 2020), available at https://covid.cdc.gov/covid-data- • Individuals engaged in official tracker/. government travel or diplomatic travel; Chad R. Mizelle, 5 WHO, COVID–19 Weekly Epidemiological • Members of the U.S. Armed Forces, Senior Official Performing the Duties of the Update (Dec. 8, 2020). and the spouses and children of General Counsel, U.S. Department of 6 Id. members of the U.S. Armed Forces, Homeland Security. 7 19 U.S.C. 1318(b)(1)(C) provides that returning to the United States; and [FR Doc. 2020–28375 Filed 12–21–20; 8:45 am] ‘‘[n]otwithstanding any other provision of law, the • Secretary of the Treasury, when necessary to Individuals engaged in military- BILLING CODE 9112–FP–P respond to a national emergency declared under the related travel or operations. National Emergencies Act (50 U.S.C. 1601 et seq.) The following travel does not fall or to a specific threat to human life or national interests,’’ is authorized to ‘‘[t]ake any . . . action within the definition of ‘‘essential that may be necessary to respond directly to the national emergency or specific threat.’’ On March 1318(b)(2) provides that ‘‘[n]otwithstanding any 1, 2003, certain functions of the Secretary of the other provision of law, the Commissioner of U.S. Treasury were transferred to the Secretary of Customs and Border Protection, when necessary to Homeland Security. See 6 U.S.C. 202(2), 203(1). respond to a specific threat to human life or Under 6 U.S.C. 212(a)(1), authorities ‘‘related to national interests, is authorized to close temporarily Customs revenue functions’’ were reserved to the any Customs office or port of entry or take any other Secretary of the Treasury. To the extent that any lesser action that may be necessary to respond to authority under section 1318(b)(1) was reserved to the specific threat.’’ Congress has vested in the 8 the Secretary of the Treasury, it has been delegated Secretary of Homeland Security the ‘‘functions of DHS is working closely with counterparts in to the Secretary of Homeland Security. See Treas. all officers, employees, and organizational units of Mexico and Canada to identify appropriate public Dep’t Order No. 100–16 (May 15, 2003), 68 FR the Department,’’ including the Commissioner of health conditions to safely ease restrictions in the 28322 (May 23, 2003). Additionally, 19 U.S.C. CBP. 6 U.S.C. 112(a)(3). future and support U.S. border communities.

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DEPARTMENT OF HOUSING AND provide more mortgage insurance and and synchronize the risk sharing URBAN DEVELOPMENT credit for new multifamily loans. Under program with the LIHTC rules. the program, qualified state and local HUD Response: HUD appreciates the 24 CFR Part 266 HFAs are delegated to originate and support but emphasizes that the revised [Docket No FR–5881–F–02] underwrite loans for new construction, definition of ‘‘affordable housing’’ is substantial rehabilitation, acquisition, technical and does not expand the RIN 2502–AJ35 refinancing, and housing for the elderly. program’s scope. As discussed in the HFAs may elect to share from 10 to 90 proposed rule, the existing definition of Section 542(c) Housing Finance percent of the loss on a mortgage with ‘‘affordable housing,’’ as well as the Agency Risk Sharing Program HUD. In the event of a claim, HFAs will definitions of ‘‘gross rent’’ and AGENCY: Office of the Assistant reimburse HUD for their portion of the ‘‘supportive services,’’ are unnecessarily Secretary for Housing-Federal Housing loss pursuant to their risk-sharing repetitive so the proposed change Commissioner, HUD. agreement’s terms. removes redundant verbiage and ACTION: Final rule. On March 8, 2016, HUD proposed a simplifies the regulatory language new rule to update the Section 542(c) without substantively changing the SUMMARY: Through the Section 542(c) HFA Risk Sharing regulations set out in program’s scope. This rule amends the Housing Finance Agency (HFA) Risk 24 CFR part 266, which were last ‘‘affordable housing’’ definition to more Sharing program, HUD enters into risk- updated over fifteen years ago. closely conform to the statutory sharing agreements with qualified state Additional details about the proposed language in Section 542(c)(7) of the and local HFAs so they can provide rule may be found at 81 FR 12051 Housing and Community Development FHA (Federal Housing Administration) (March 8, 2016). Act of 1992 and meet the requirements mortgage insurance and credit for a qualified low-income housing tax enhancement for new loans on II. This Final Rule credit project under section 42(g) of the multifamily affordable housing This final rule follows publication of Internal Revenue Code. Comment: The rule should clarify that properties. This final rule amends the the March 8, 2016 proposed rule and cooperatives meet the proposed rule’s program’s existing regulations, to better considers the public comments definition of ‘‘affordable housing,’’ and align with the policies of other HUD received. HUD is adopting the proposed that ‘‘gross rent’’ includes charges for programs, reflect current industry and rule as final with no substantive the occupancy of a cooperative unit. A HUD practices, and conform to statutory changes. amendments. Additionally, this rule commenter stated that the existing Risk- provides HUD with greater flexibility to III. Discussion of Public Comments Sharing regulations make it clear that loans for cooperatives with five or more operate the Section 542(c) HFA Risk HUD received eight public comments units are eligible for Risk-Sharing Sharing program more efficiently and on the proposed rule from housing and mortgage insurance, but the rule’s provides HFAs which accept a greater finance agencies, a law firm, and other revision of the ‘‘affordable housing’’ share of the risk of loss on mortgages interested parties. One commenter did insured under the program with definition makes that less clear. not discuss the proposed rule and According to the commenter, the expanded program delegation. This rule therefore the comment will not be also updates outdated references and revision should incorporate all the addressed here as it is outside the requirements for a qualified low-income terminology and clarifies other rulemaking’s scope. In general, the provisions. housing project that are set forth in comments received supported the rule, I.R.C. Section 42(g) and not simply the DATES: Effective January 21, 2021. with no expressed opposition. gross rent rules that are required by the FOR FURTHER INFORMATION CONTACT: The comments largely contained Section 542(c) Risk-Sharing statute. Carmelita A. James, Office of requests for clarification, suggested The commenter stated further that Multifamily Production, Office of technical changes, and provided Section 42(g) contains several LIHTC- Housing, Department of Housing and additional recommendations. Several specific concepts that may need to be Urban Development, 451 7th Street SW, commenters stated the proposed rule’s disregarded when they are applied to Room 6146, Washington, DC 20410; revisions were necessary updates that non-LIHTC, Risk-Sharing projects. telephone number (202)–402–2579 (this would help streamline the regulation, Further, Section 42(g) should not be is not a toll-free number). Persons with add flexibility, and make the program interpreted as implying that hearing or speech impairments may more effective. In addition, commenters cooperatives are not eligible for Risk access this number through TTY by stated they appreciated HUD’s extensive Sharing. The commenter suggested calling the toll-free Federal Relay outreach and exchanges with HFAs clarifying the definition of affordable Service at 800–877–8339. prior to issuing the proposed rule. housing so that, for purposes of the SUPPLEMENTARY INFORMATION: HUD appreciates the time that Risk-Sharing regulations, any reference commenters took to provide helpful to a residential rental project in Section I. Background information and valuable suggestions. 42(g) includes cooperative projects. Section 542 of the Housing and In addition, the commenter stated that A. Affordable Housing Definition Community Development Act of 1992 the proposed rule continues existing (12 U.S.C. 1715z–22) (Section 542) Comment: The revisions to the cooperative-related language from the directs HUD to carry out programs definition of ‘‘affordable housing’’ are current rule that is unnecessarily through FHA to demonstrate the helpful. Commenters supported HUD confusing because charges for a effectiveness of providing new forms of amending the proposed rule’s definition cooperative unit occupancy are said to Federal credit enhancement for loans on of ‘‘affordable housing.’’ One be a form of utility allowance. Lastly, multifamily affordable housing commenter supported the proposed the commenter said it is awkward to properties which are underwritten, revisions because they would expand refer to cooperative occupancy charges processed, serviced, and disposed of by the Section 542(c) program to better in such terms, which are otherwise HFAs. HUD and the HFAs share in the support loans on projects with Federal known as ‘‘maintenance fees,’’ and the risk of loss, which enables the HFAs to low-income housing tax credits (LIHTC) final rule should specify that gross rent,

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and not just the utility allowance, is HUD Response: HUD has the statutory commenter indicated that included in the charges for a authority to impose additional § 266.200(c)(4), (5), and (7) of the cooperative unit occupancy. underwriting criteria, loan terms, and proposed rule, which describe eligibility HUD Response: HUD appreciates the conditions when HUD assumes more requirements for existing projects, relate comments on ensuring that the rule is than 50% of the risk of loss and may do to projects with Section 8 contracts, but clear that cooperative units are eligible so for a variety of risk management and none of them states that explicitly, and as ‘‘affordable housing’’ for purposes of program oversight reasons. HUD that beginning each of these paragraphs the Risk Sharing program, if they interprets the commenters reference to with a phrase such as ‘‘If the project is otherwise meet the Risk Sharing ‘‘large claims made’’ as intending to the subject of a Housing Assistance statute’s other requirements. This rule refer to mortgage insurance Payments (HAP) contract . . .’’ would continues to apply to cooperative commitments issued for large loans. provide clarity. Alternatively, this housing units, and HUD does not HUD disagrees that reviewing commenter said that § 266.200(c)(4), (5), believe any additional changes are underwriting standards, loan terms and and (7) could be consolidated into a necessary to confirm that. conditions only as they apply to large single subsection that addresses Section loans would be sufficient to manage risk 8 assisted projects. B. Housing Finance Agency and to protect the Risk Sharing HUD Response: HUD agreed with the Requirements program’s safety and soundness. suggestions. Sections 266.200(c)(4), (5) Comment: Be consistent regarding Comment: Termination. One and (7) were consolidated into a single rating requirements. A commenter commenter objected to the proposed subsection (5) for Section 8 assisted stated the HFA qualifier with an change allowing HUD to withdraw projects which begins with the phrase ‘‘overall rating of ‘A’ on general program approval for Level II HFAs that ‘‘If the project is subject to a Housing obligation bonds’’ used in § 266.110(a) do not adopt new underwriting Assistance Payment (HAP) contract and § 266.120(e)(5) should also be used standards, loan terms and conditions, . . . .’’ This paragraph was moved to in § 266.100(a)(l). This commenter also and asset management and servicing clarify the circumstances to which this indicated that while HFAs may qualify procedures that HUD may establish applies, after the general provisions in to participate in the program if they every five years. The comment stated § 266.200. carry an issuer credit rating of ‘‘A’’ or that termination seems inappropriate for Comment: Differences between better, the regulations do not provide HFAs that are otherwise performing § 266.200(c)(7) and § 266.200(d). Under that HFAs may qualify if they receive a under the program. The commenter Section 266.200(d), for projects that receive rental subsidies, the HUD rating of ‘‘A’’ or better for their general asked that HUD allow for a reasonable insured mortgage may not exceed an obligation bonds. In addition, the transition period and establish amount supported by the lower of the commenter said that, considering this, processes the HFAs can use to negotiate contract rents under the rental an ‘‘AA’’ or ‘‘AAA’’ rating would HUD’s new standards and to appeal a assistance agreement or market rents, technically not be sufficient, and possible termination. HUD Response: The language in the except for Section 202 projects. Under recommended that the rule specify in proposed rule states that, every five Section 266.200(c)(7), the HUD-insured § 266.100(a)(1), § 266.110(a), and years, HUD will review the mortgage may not exceed an amount § 266.120(e)(5) that a HFA can qualify underwriting standards, loan terms and supported by the lower of the unit rents for the program if it receives a rating of conditions, and asset management and under the rental assistance agreement or ‘‘A’’ or better for its general obligation servicing procedures for HFAs with unit rents at unassisted projects in the bonds. Level II approval, under which HFAs market area, except for Section 202 The commenter also said it assumes assume less than 50% of the risk of loss projects. The commenter asked why that references to ‘‘general obligation and that HUD may require changes to both provisions were necessary and how bonds’’ in the rule mean bonds whose these standards and procedures as a they differed. rating depends on the issuer’s general condition of continued Level II HUD Response: HUD agreed with the ability to pay, and area proxy for an approval. The rule does not state that commenter that the language in both issuer rating, and are not intended to HUD will necessarily establish new Sections is similar, however, the include general obligation bonds that procedures every five years, but only difference is intentional. Section also have pledged collateral that serves that HUD will review the standards and 266.200(c)(7) has requirements for as the basis for the rating. The procedures of HFAs with Level II existing projects which may or may not commenter said that the mere fact that approval every five years. Under this have Section 8 subsidies, whereas loans are pledged does not necessarily regulation, HUD may require changes to Section 266.200(d) has requirements mean they will be the basis for the bond these standards and procedures to exclusively for projects receiving rating, although they often are. ensure they are updated and that they Section 8 subsidies. HUD Response: The commenter’s conform to HUD’s standards and Comment: Exception for 202 projects. requested language is already included requirements, but the rule does not state The exception for 202 projects in the in § 266.100(a)(2), which remains that HUD will necessarily terminate an revised § 266.200(d) seems to contradict unchanged, and as such there is no need HFA’s approval. As noted in the the preamble’s explanation that the to change § 266.100(a)(l). proposed rule’s preamble, many of the amendment to this Section would result Comment: Reconsider reviewing standards used by HFAs with Level II in Level I HFAs being subject to the underwriting standards, loan terms and approval have been in place for more same underwriting standards as for conditions, and asset management and than 20 years without being reviewed by other Section 202 projects, in that the servicing procedures for HFAs with HUD, and may likely be outdated. loans may be underwritten to contract Level II approval every five years. A rents. The commenter stated that the commenter suggested that reviewing C. Program Requirements ‘‘same underwriting standard’’ refers to Level II HFA underwriting standards Comment: Clarify eligibility the program allowing Section 202 every five years to align them with FHA requirements for existing projects and projects to obtain Risk Sharing loans standards is not necessary and should projects receiving Section 8 rental which are underwritten based on only apply to ‘‘large claims made.’’ subsidies or other rental subsidies. A contract rents, regardless of market

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rents, and asked that HUD provide housing. However, as noted above, a (M2M), Option 4, or some Option 5 clarity. contract extension could be agreed to at Low-Income Housing Preservation and HUD Response: HUD reviewed the the time of loan closing with the Resident Homeownership Act proposed § 266.200(b)(7) and mortgagee’s consent requested at that (LIHPRHA) projects). The FHA § 266.200(d) and determined that Level time. The commenter stated that the Multifamily Accelerated Processing I participants may underwrite Section regulatory requirements for the PBV (MAP) program allows rents to be 202 projects to contract rents, regardless contract’s term (24 CFR 983.205) could underwritten to the above-market HAP of market comparable. make compliance with the requirement contract rents for the full term of the Comment: Clarify § 266.200(c)(4). in this rule problematic, as the contract. Commenters suggested that the Commenters asked HUD to clarify that regulations impose limitations on the proposed rule incorporate comparable § 266.200(c)(4), which requires that total, aggregate term allowed for a PBV provisions for the HFA Risk-Sharing property owners agree to renew the HAP contract. Section 983.205 has been Program. contract for a 20-year term, applies only modified by the Housing Opportunity Another commenter asked that HUD to Section 8 Project-Based Rental Through Modernization Act (HOTMA), extend the flexibility provided for Assistance (PBRA) and not Section 8 with the initial and extension term Section 202 projects to situations in Project-Based Vouchers (PBV). The language contained in the FR which Risk-Sharing is used to finance commenters said that administering Implementation Notice dated 1–18–17, loans for projects under other programs, agencies are not obligated to extend PBV with further guidance provided in such as M2M, Option 4 and some contracts and can let them expire, Notice PIH 2017–21. Eventually, HUD Option 5 LIHPRHA deals. unlike PBRA. Furthermore, even if will codify these changes. However, HUD Response: Under M2M, once a administering agencies were willing to HOTMA allows the agency to initially property has gone through an M2M extend PBV contracts, uncertainty implement by FR Notice, which is what restructuring (which sets the Section 8 regarding third-party consent has occurred. rents at market), the only permitted rent requirements could deter owners from Comment: Residual receipts. Further, increase is an annual Operating Cost using the Section 542(c) program to commenters asked whether the Adjustment Factors increase. HUD is preserve affordable housing. provision in the proposed rule regarding unable to act on the commenter’s Additionally, commenters said the residual receipts to fund future Housing suggestion regarding Section 202 regulatory requirements for the term of Assistance Payments in § 266.200(c)(5) projects since that program is governed the PBV contracts could make only applies to so-called ‘‘New by its own statutory and regulatory compliance with the requirement in this Regulation’’ HAP contracts, pursuant to structure, which is beyond the scope of rule problematic, as the regulations HUD Notice 2012–14 and the FAQ the Risk Sharing regulation. impose limitations on the total, memo of October 2, 2012, and asked Comment: Expand the Risk-Sharing aggregate term allowed for a PBV that the rule be specific as to which program. A commenter recommended contract. See 24 CFR 983.205. HAP contracts it applies in order to that HUD expand project eligibility to Commenters also asked HUD to avoid restricting distributions where the include financing workforce housing clarify whether the requirement for a 20- HAP contract itself has no limit. projects where the resident could earn year renewal of a HAP contract is HUD Response: Notice 2012–14 up to 80–100 percent of Area Median deemed satisfied for projects with an applies to contracts subject to the Income (AMI). This commenter said existing HAP contract if the owner revised Section 8 regulations. HUD will that, currently, workforce transactions commits to a future extension upon the specify the applicable HAP contracts in where rents are above 60 percent of AMI existing HAP contract’s expiration, or if the final rule, in accordance with Notice and do not meet the minimum set-aside it requires that the owner enter into a 2012–14, which states: ‘‘For projects defined in the Handbook cannot be new 20-year HAP contract at the closing subject to 24 CFR part 883, in effect as financed under Risk Sharing. This on the loan. Commenters said the of February 29, 1980, the State Housing commenter also recommended that former should achieve HUD’s policy Agency, rather than HUD, is entitled to HUD expand the definition of senior goals and will avoid any potential make the determination that project properties for the Risk Sharing program detrimental impact on a project’s funds are more than the amount needed to include renters age 55 and older in appraised value that could result from and to require that the excess be order to provide greater flexibility for extending HUD’s use agreement now, as deposited into an interest-bearing HFAs and to align with current industry would be required upon certain types of account to be used for project practices defining a senior property. HAP contract extensions. purposes.’’ See 24 CFR 883.306(e). Further, the commenter asked that the HUD Response: The PBV program Comment: Expand the underwriting regulation clarify whether manufactured permits 20-year contract extensions at exception. Commenters requested that housing rental communities can be any time during the contract term, the rule’s exception regarding insured under the Section 542(c) effectively creating a 40-year contract underwriting to the lower of market or program, assuming they meet other option. Extensions are at the PHA’s HAP rents be expanded. Commenters program requirements. discretion, so a PHA could decide not said that § 266.200(c)(7) and HUD Response: Expanding project to extend a PBV contract, since PBVs are § 266.200(d) generally require eligibility to include residents earning not like PBRA, where owners have a underwriting rents to be the lower of up to 80 to 100 percent of AMI would general right to renewal under the market or Section 8 rents, but there is not conform to the program’s statutory Multifamily Assisted Housing Reform an exception to underwrite at higher requirements, under which the and Affordability Act. However, even if HAP contract rents on Section 202 affordability restriction must meet the the administering agencies were willing refinances. Commenters said there are requirements of I.R.C. § 42(g). Projects to extend a PBV contract at some point other exceptions available for other restricted to renters age 55 and older are during its term, HUD recognizes that multifamily loans insured by FHA, required to comply with the Fair uncertainty regarding third-party specifically, if the long-term HAP Housing Act’s exemption and HUD’s consent requirements could deter contract rents are above market rents Housing for Older Person regulations in owners from using the Risk Sharing and are not subject to being reset to 24 CFR part 100, subpart E. program to preserve the affordable market (for example, Mark-to-Market Manufactured housing rental

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communities are eligible for Risk the HFA is willing to extend the loan Comment: Revise the current Sharing in accordance with 24 CFR term. regulation’s termination of insurance 266.200(a)—Eligible Projects, if all other HUD Response: HUD agreed with the effective date provisions. Commenters statutory and regulatory requirements of comment and the language was changed said that the current § 266.622 does not the Risk Sharing program are met. accordingly. contemplate a refinancing that involves Comment: Revise HFA environmental Comment: Provide specificity the payoff or cancellation of an existing review requirements. A commenter said regarding HUD’s authority to adjust the Risk Sharing loan with the proceeds HFAs that serve as a Responsible Entity amount of mortgage insurance. from a new Risk-Sharing (or other FHA- (RE) for conducting the environmental Commenters said that the current insured) loan. Additionally, assessment for Risk-Sharing mortgages § 266.417 allows HUD to modify the commenters said the Form 9807 must follow 24 CFR part 58 regulations, insured loan amount up until final instructions, which state that voluntary but that HUD follows 24 CFR part 50 for endorsement but does not specify the insurance terminations are effective on mortgage insurance applications factors that HUD would consider in the date that all requirements are met, processed under the MAP program. The doing so. Commenters said this seems inconsistent with § 266.620, commenter suggested changing the Risk- potential reduction is separate from which refers to a termination being Sharing regulations to allow HFAs that HUD’s right to challenge the cost effective at the end of the month when take at least 50 percent risk of loss to certification under § 266.310(d)(4) and the requirements are met. Commenters utilize 24 CFR part 50 for the to deny endorsement based on a finding suggested that § 266.622 provide that environmental reviews in order to align of fraud or misrepresentation under ‘‘The termination shall be the last day Risk-Sharing loans with the same § 266.300(e). The uncertainty regarding of the month in which one of the events standards as the MAP program, which how HUD might exercise its discretion specified in § 266.620 occurs except in will result in more streamlined reviews to adjust the amount of insurance under the case of a prepayment termination and a more expedited process. § 266.417 can be problematic for Low under § 266.620(a) or voluntary HUD Response: The National Income Tax Credit equity investors and termination under § 266.620(d), which Environmental Policy Act required developers. As a result, commenters shall be effective at the time or upon the environmental reviews are lengthy and said it would be helpful if the rule could conditions requested by the HFA in the create an additional responsibility for be revised to limit HUD’s discretion to request to terminate, provided that in already overburdened HUD field offices. reduce the insured loan amount to the event such prepayment termination To lessen this burden and to facilitate certain specific factors. or voluntary termination is in more expeditious processing of HUD Response: HUD reserves the coordination with the issuance of Risk- applications for mortgage insurance, right to mitigate the risks posed by Sharing (or other FHA) insurance on HUD will continue to serve in a delegation of underwriting, servicing, new financing for the subject project, monitoring role for environmental and processing of Risk Sharing loans to the prepayment termination or reviews performed by the HFAs. HFAs. By retaining final authority to voluntary termination shall in no event Assumption of this authority is critical adjust the insured mortgage amount up be effective later than the date of the to giving the HFAs the maximum to and including the final endorsement, initial disbursement of funds under authority to carry out the Risk Sharing HUD is not suggesting that it will, as a such new insured loan.’’ program’s intent. matter of policy, routinely review all decisions about insured advances or HUD Response: Section 266.620(d) D. Mortgage Requirements cost certification. states if ‘‘[t]he HFA notifies the Comment: Provide further Commissioner of Termination of E. Claim Procedure information about the rule’s fully Insurance (voluntary termination);’’ amortizing loan requirement and Comment: Permit more time for HFAs then § 266.622 specifies ‘‘[t]he exceptions. A commenter stated that to use initial claim payments to retire termination shall be the last day of the § 266.410(e) provides that the rule’s bonds. A commenter said that the month in which one of the events fully amortizing loan requirement does proposed § 266.628(a)(3) requires that specified in § 266.620 occurs.’’ not apply to Level I participants, where an HFA use the initial claim payment’s Voluntary termination, by submitting the loan can have a minimum 17-year proceeds to retire bonds within 30 days HUD Form 9807, must be completed term and the HFA’s underwriting of the claim payment, but this may not before the initial endorsement of a new standards have been approved by HUD. be realistic in many instances and refinancing loan can proceed. Therefore, This commenter stated that the industry cannot always be accomplished under it is vital that the Form 9807 is standard for a LIHTC first mortgage loan the controlling bond documents. submitted in a timely manner to ensure is 30-year amortization with a 17-year Commenter suggested that the proposed that the existing project is terminated in term, and the commenter said it rule require redemption as soon as HUD’s systems before the new project presumed this provision is intended to reasonably permitted by the bond can be added. HUD agrees that the apply to properties of this type. The resolution or indenture, and that the requirements of the Form 9807 are commenter also said the rule does not claim payment be returned if not used inconsistent with regulations in require a specific amortization period to call bonds within 60 days instead of § 266.622. Form 9807 was primarily since HUD has the ultimate veto of the 30 days. designed for mortgage terminations HFA’s underwriting criteria. Another HUD Response: The 30-day insured under the National Housing Act commenter suggested giving HFAs the requirement is in the existing and does not include any instructions ability to extend the maximum regulations and the only change made in on Risk Sharing terminations. HUD will amortization period to 40 years for loans this rule is to clarify that 30 days means explore revising the Form 9807 to that will have a shorter term. This 30 calendar days. HUD did not believe include instructions for terminating commenter also suggested the rule that this requirement was problematic Risk Sharing loans. However, HFAs are clarify HUD’s flexibility to extend the for HFAs when the existing regulations instructed that when submitting mortgage insurance at the time a term were issued, and HUD will not change terminations, Block #5 of the Form 9807 loan balloon payment is due provided the requirement at this time. should indicate the ‘‘official’’

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termination date (the last day of the purposes, HUD will specify that all Risk IV. Findings and Certifications month). Sharing transactions would be subject to Regulatory Review—Executive Orders this rule. Note that § 266.620 governs F. Endorsement and Approval 12866 and 13563 only the potential termination of Comment: No requirement that large mortgage insurance for the reasons Under Executive Order 12866 loans require the FHA Commissioner’s stated in the provision but does not (Regulatory Planning and Review), a approval. A commenter said that calling contain any provisions governing the determination must be made whether a for the FHA Commissioner to review a Final Endorsement of loans for mortgage regulatory action is significant and ‘‘large loan’’ under Risk Sharing is not insurance. This provision gives HUD the therefore, subject to review by the Office necessary and could delay the loan flexibility to accept an indemnification of Management and Budget (OMB) in process. from an HFA based on the accordance with the order’s HUD Response: As explained in the circumstances of a transaction, but does requirements. Executive Order 13563 rule, FHA currently requires a National not necessarily require that HUD do so. (Improving Regulations and Regulatory Loan Committee to approve all large Review) directs executive agencies to loans under the MAP Guide for risk G. Non-Regulatory Actions analyze regulations that are ‘‘outmoded, management purposes. Risk-sharing Comment: Update the Firm Approval ineffective, insufficient, or excessively loans where the HFA assumes less than and the Closing Docket submission burdensome, and to modify, streamline, 50 percent of the risk of loss pose a process. A commenter asked if HUD expand, or repeal them in accordance similar risk to FHA as do MAP loans considered updates to the submission with what has been learned.’’ that are fully insured. The National process for both Firm Approval and the This final rule updates HUD’s Loan Committee large loans review Closing Docket to remove obsolete regulations pertaining to Housing requirement does not impact the time it references such as utilizing a diskette, as Finance Agency Risk Sharing Program takes to process loans. Loans are usually well as an amortization schedule for for Insured Affordable Multifamily Project Loans, codified in 24 CFR part reviewed and completed within 1–2 loans ‘‘Insured of Advances’’ when days. Furthermore, this ensures that the 266. The program regulations were being submitted for the initial FHA insurance fund is protected from initially promulgated in 1994, with the endorsement. The commenter said that potential losses on large loans. last updates undertaken in 2000, but the current practice is to submit an Therefore, this final rule maintains the only to a few regulatory sections. This electronic package as well as a hard revision that amends § 266.305(a) that update is undertaken to reflect statutory copy to the local office for review. The establishes the underwriting standards changes and revise outdated references commenter said the amortization for HFAs accepting less than 50 percent and older terminology. The rule also schedule is useful when the note is of the risk, to add a provision that large better aligns HUD’s regulations with modified as part of the final loans processed by these HFAs under current industry and current HUD endorsement but not during the Risk Sharing also requires the FHA practices and policies. These changes construction period, when loan Commissioner’s prior approval. would not create additional significant payment is interest only. Comment: Provide that HUD may burdens for the public. As a result, this accept an indemnification from the HFA HUD Response: HUD agreed with the rule was determined not to be a in lieu of refusing to endorse a mortgage commenter and will eliminate all significant regulatory action under note for insurance at final endorsement obsolete references when the HFA Risk section 3(f) of Executive Order 12866, due to fraud or material Sharing Handbook 4590.1 is revised. Regulatory Planning and Review, and misrepresentation. Commenters stated The amortization schedule at initial and therefore was not reviewed by the Office that they approve of the rule’s new final endorsement submission is used of Management and Budget. provision in § 266.620(b) that allows by the Department’s Office of Financial HUD, in its discretion, to accept an Analysis and Controls Division and the Regulatory Flexibility Act indemnification from the HFA to avoid Office of Insurance Operations to record The Regulatory Flexibility Act (RFA) insurance cancellation for fraud or the Department’s collections, (5 U.S.C. 601 et seq.), generally requires misrepresentation. Commenters asked receivables, and payables. an agency to conduct a regulatory that the rule be clarified or extended to Comment: Consider creating an flexibility analysis of any rule subject to specify that, for substantial Applicability Matrix for Risk-Sharing notice and comment rulemaking rehabilitation or new construction, HUD Loans. A commenter said an requirements unless the agency certifies also has the discretion to accept an ‘‘Applicability Matrix’’ is currently used that the rule will not have a significant indemnification from the HFA in lieu of for transactions financed under the economic impact on a substantial refusing to endorse the mortgage note at MAP LIHTC Pilot program and having number of small entities. final endorsement due to fraud or a similar matrix for Risk Sharing loans The regulatory amendments would material misrepresentation under will ensure consistency among HFAs as update the regulations governing HUD’s § 266.300(e). Commenters further said part of underwriting and loan closing HFA Risk-Sharing program to conform that conceptually, the issue is the same, due diligence involving LIHTC to current industry practices and FHA and they believe that HUD would be properties. policies with which HFAs and other covered by the indemnification. HUD Response: HFA Risk Sharing program participants are already HUD Response: The new provision in lenders are granted the maximum range familiar. Other regulatory changes will § 266.620(b) is designed to provide of processing responsibilities and provide greater flexibility for HFAs, flexibility for HUD to accept flexibilities. Program regulations alleviating administrative burdens and indemnification from an HFA in lieu of provide for primary decision-making by related program operating costs. While terminating an existing contract of participating HFAs in selecting projects there may be some costs for HFAs to insurance for the reasons stated in the to finance. An Applicability Matrix update their practices and procedures to provision and applies to all Risk would be inconsistent with the reflect some of the regulatory changes, Sharing transactions, including for new program’s basic principles, which is these costs are minimal in comparison construction and substantial delegating the underwriting, including to the streamlining benefits provided by rehabilitation. For clarification loans’ terms and conditions, to the HFA. the revised program regulations.

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For the reasons presented, the been approved by the Office of housing projects processed by such undersigned certifies that this rule will Management and Budget (OMB) under HFAs under this program. Through risk- not have a significant economic impact the Paperwork Reduction Act of 1995 sharing agreements with HUD, HFAs on a substantial number of small (44 U.S.C. 3501–3520) and assigned contract to reimburse HUD for a portion entities. OMB control number 2502–0500. In of the loss from any defaults that occur accordance with the Paperwork while HUD insurance is in force. Executive Order 13132, Federalism Reduction Act of 1995, an agency may (3) The extent to which HUD directs Executive Order 13132 (entitled not conduct or sponsor, and a person is qualified HFAs regarding their ‘‘Federalism’’) prohibits an agency from not required to respond to, a collection underwriting standards, loan terms and publishing any rule that has Federalism of information, unless the collection conditions, and asset management and implications if the rule either imposes displays a currently valid OMB control servicing procedures is related to the substantial direct compliance costs on number. proportion of the risk taken by an HFA. state and local governments and is not (b) Purpose. The primary purpose of Catalog of Federal Domestic Assistance required by statute, or the rule preempts this program is to provide credit state law, unless the agency meets the The Catalog of Federal Domestic enhancement for multifamily loans, i.e., consultation and funding requirements Assistance (CFDA) Program number for utilization of full insurance by HUD, of section 6 of the Executive Order. This the Housing Finance Agencies Section pursuant to risk-sharing agreements rule would not have Federalism 542(c) Risk Sharing Program is 14.188. with qualified housing finance agencies, implications and would not impose List of Subjects in 24 CFR Part 266 for the development of affordable substantial direct compliance costs on housing. The utilization of Federal state and local governments or preempt Intergovernmental relations, Low and credit enhancements increases access to state law within the meaning of the moderate income housing, Mortgage capital markets and, thereby, increases Executive Order. insurance, Reporting and recordkeeping the supply of affordable multifamily requirements. Environmental Impact housing. By permitting HFAs to Accordingly, for the reasons stated underwrite, process, and service loans A Finding of No Significant Impact above, HUD amends 24 CFR part 266 as and to manage and dispose of properties with respect to the environment was follows: that fall into default, affordable housing made prior to publication of the is made available to eligible families proposed rule in accordance with HUD PART 266—HOUSING FINANCE and individuals in a timely manner. regulations at 24 CFR part 50, which AGENCY RISK-SHARING PROGRAM ■ implement section 102(2)(C) of the 4. Amend § 266.5 by: FOR INSURED AFFORDABLE ■ a. Removing ‘‘, as amended’’ from the National Environmental Policy Act of MULTIFAMILY PROJECT LOANS 1969 (42 U.S.C. 4332(2)(C)). The definition of ‘‘Act’’; ■ Finding of No Significant Impact ■ 1. The authority citation for part 266 b. Revising the definition of remains applicable and is available for is revised to read as follows: ‘‘Affordable housing’’; ■ public inspection during regular c. Removing from the definition of Authority: 12 U.S.C. 1715z–22.; 42 U.S.C. ‘‘Commissioner’’ the words ‘‘his or her’’ business hours in the Regulations 3535(d). Division, Office of General Counsel, and adding in their place the words ‘‘the ■ Department of Housing and Urban 2. Amend part 266 by removing the Commissioner’s’’; ■ Development, 451 Seventh Street SW, words ‘‘Contract of Insurance’’ and add d. Revising the definition of ‘‘Credit Room 10276, Washington, DC 20410– in their place the words ‘‘contract of subsidy’’; ■ 0500. Due to security measures at the insurance’’ wherever they occur. e. Removing from the definition of HUD Headquarters building, please ■ 3. Revise § 266.1 to read as follows: ‘‘Designated offices’’ the words ‘‘HUD Field Offices’’ and adding in their place schedule an appointment to review the § 266.1 Purpose and scope. Finding by calling the Regulations the words ‘‘local HUD offices’’; ■ Division at (202) 402–3055 (this is not (a) Authority and scope. (1) Section f. Removing the definition of ‘‘Gross a toll-free number). Individuals with 542 of the Housing and Community rent’’; ■ speech or hearing impairments may Development Act of 1992 (12 U.S.C. g. Removing from the definition of access this number via TTY by calling 1715z–22), directs the Secretary of the ‘‘Multifamily housing’’ the word the Federal Relay Service at (800) 877– Department of Housing and Urban ‘‘Secretary’’ and add in its place the 8339. Development (HUD), acting through the word ‘‘Commissioner’’; and Federal Housing Administration (FHA), ■ h. Removing the definition of Unfunded Mandates Reform Act to carry out programs that will provide ‘‘Supportive services’’. Title II of the Unfunded Mandates new forms of Federal credit The revisions read as follows: enhancement for multifamily loans. Reform Act of 1995 (Pub. L. 104–4; § 266.5 Definitions. approved March 22, 1995) (UMRA) Section 542, entitled, ‘‘Multifamily establishes requirements for Federal Mortgage Credit Programs,’’ provides * * * * * agencies to assess the effects of their insurance authority independent from Affordable housing means a project regulatory actions on state, local, and that provided by the National Housing that meets the requirements for a tribal governments, and on the private Act. qualified low-income housing project sector. This proposed rule does not (2) Section 542(c) of the Housing and under section 42(g) of the Internal impose any Federal mandates on any Community Development Act of 1992 Revenue Code of 1986 (26 U.S.C. 42(g)). state, local, or tribal government, or on specifically directs HUD to carry out a For purposes of this part, the reference the private sector, within UMRA’s program of risk-sharing with qualified to a utility allowance in 26 U.S.C. 42(g) meaning. State and local housing finance agencies includes charges for the occupancy of a (HFAs). The qualified HFAs are cooperative unit. Information Collection Requirements authorized to underwrite and process * * * * * The information collection loans. HUD provides full mortgage Credit subsidy means the cost of a requirements contained in this rule have insurance on affordable multifamily direct loan or loan guarantee under the

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Federal Credit Reform Act of 1990 (4) Every five years, HUD will review rating is lost, comply with paragraph (subtitle B of title XIII of the Omnibus the underwriting standards, loan terms (e)(6) of this section); Budget Reconciliation Act of 1990, and conditions, and asset management * * * * * Public Law 101–508, approved Nov. 5, and servicing procedures for HFAs with ■ 12. Amend § 266.125 by revising 1990). Level II approval. HUD may require paragraph (a)(6), adding paragraph * * * * * changes to these procedures as a (a)(8), and revising the first sentence of condition for continued Level II paragraph (d)(1) to read as follows: § 266.10 [Removed] approval. ■ 5. Remove § 266.10. ■ 8. Amend § 266.105 by revising § 266.125 Scope and nature of sanctions. ■ 6. Revise § 266.30 to read as follows: paragraph (b) to read as follows: (a) * * * (6) Recommend to the Commissioner § 266.30 Nonapplicability of 24 CFR part § 266.105 Application requirements. that the HFA’s mortgagee approval be 246. * * * * * withdrawn pursuant to 24 CFR part 25 The regulations at 24 CFR part 246, (b) Applications for participation in (regulations of the Mortgagee Review pertaining to local rent control, do not program. Applications from HFAs for Board) and/or that penalties be imposed apply to projects that are security for approval to participate in the program pursuant to 24 CFR part 30 (regulations mortgages insured under this part. under this part may be submitted at any pertaining to Civil Money Penalties; ■ 7. Amend § 266.100 by: time, and must be submitted in the form Certain Prohibited Contact); ■ a. Revising the first sentence of and manner established by HUD. * * * * * paragraph (a) introductory text; ■ 9. Amend § 266.110 by revising the (8) Require the HFA to revise any or ■ b. Revising paragraphs (a)(1), (a)(6)(i), paragraph (a) subject heading, the first all of its underwriting, processing, asset (b)(1), (b)(2) introductory text, and sentence of paragraph (a), and the third management, or servicing policies and (b)(3); and sentence of paragraph (b)(1) procedures as directed by the ■ c. Adding paragraph (b)(4). introductory text to read as follows: Commissioner. The revisions and addition read as * * * * * follows: § 266.110 Reserve requirements. (d) * * * (a) HFAs with an issuer credit rating § 266.100 Qualified housing finance (1) Any sanction imposed by a agency (HFA). of ‘‘A’’ or better or overall rating of ‘‘A’’ designated office in writing will be or better on general obligation bonds. (a) Qualifications. To participate in immediately effective, will state the An HFA with an issuer credit rating of the program, an HFA must apply and be grounds for the action, and provide for ‘‘A’’ or better, or an equivalent specifically approved for the program the HFA’s right to an informal hearing designation, or an HFA with an overall described in this part, in addition to before the designated office rating of ‘‘A’’ or better on its general being approved as a mortgagee under representative or designee in the obligation bonds, is not required to have § 202.10 of this part. * * * designated office. * * * additional reserves so long as the HFA (1) Carry an issuer credit rating of ‘‘A’’ * * * * * maintains that designation or rating, or better, or an equivalent as evaluated ■ 13. Amend § 266.200 by: unless the Commissioner determines by Standard and Poor’s or any other ■ a. Revising paragraphs (b)(2), (c), (d), that a prescribed level of reserves is nationally recognized rating agency; or (e), and (g); necessary. * * * ■ b. Redesignating paragraph (h) as * * * * * (b) * * * (6) * * * paragraph (i); and (1) * * * The account must be ■ c. Adding new paragraph (h). (i) The Department of Justice has not established prior to the execution of any brought a civil rights suit against the The revisions and addition read as risk-sharing agreement under this part follows: HFA, and no suit is pending; in an initial amount of not less than * * * * * $500,000. * * * § 266.200 Eligible projects. (b) * * * * * * * * * * * * * (1) Level I approval to originate, (b) * * * service, and dispose of multifamily § 266.115 [Amended] (2) Substantial rehabilitation occurs mortgages where the HFA uses its own ■ 10. Amend § 266.115 by removing the when the scope of work to improve an underwriting standards, loan terms and words ‘‘his or her’’ from the first existing project exceeds in aggregate conditions, and asset management and sentence in paragraph (a) and from cost a sum equal to the base per servicing procedures, and assumes 50 to paragraph (c). dwelling unit limit times the applicable 90 percent of the risk of loss (in 10 ■ 11. Amend § 266.120 by revising high cost factor established by the percent increments). Commissioner, or when the scope of (2) Level II approval to originate, paragraphs (d) and (e)(5) to read as follows: work involves the replacement of two or service, and dispose of multifamily more building systems. Replacement is mortgages where the HFA uses § 266.120 Actions for which sanctions may when the cost of replacement work underwriting standards, loan terms and be imposed. exceeds 50% of the cost of replacing the conditions, and asset management and * * * * * entire system. The base per dwelling servicing procedures approved by HUD, (d) Actions or conduct for which unit limit is $15,933 for 2019, and will and: sanctions may be imposed against the be adjusted annually based on the * * * * * HFA by HUD’s Mortgagee Review Board percentage change in the consumer (3) For HFAs who plan to use Level under 24 CFR 25.9, which pertains to price index. I and Level II processing, the ‘‘notice of administrative action’’. (c) Existing projects. Financing of underwriting standards, loan terms and (e) * * * existing properties for acquisition or conditions, and asset management and (5) Maintain an issuer credit rating of refinancing without substantial servicing procedures to be used on ‘‘A’’ or better, or an equivalent rehabilitation is allowed. Level II loans must be approved by designation, or overall rating of ‘‘A’’ on (1) If the financing will result in the HUD. general obligation bonds (or if such preservation of affordable housing,

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where the property will be maintained (e) SRO projects. Single room § 266.217 Environmental review as affordable housing for a period of at occupancy (SRO) projects, as defined in requirements. least 20 years, regardless of whether the § 266.5, are eligible for insurance under The responsible entity, as defined in loan is prepaid; and this part. Units in SRO projects must be 24 CFR part 58 (Environmental Review (2) Project occupancy is not less than subject to 30-calendar day or longer Procedures for Entities Assuming HUD 93 percent (to include consideration of leases; however, rent payments may be Environmental Responsibilities), rent in arrears), based on the average made on a weekly basis in SRO projects. assumes legal responsibility for occupancy in the project over the most * * * * * compliance with the requirements of the recent 12 months; and (g) Elderly projects. Projects or parts National Environmental Policy Act of (3) The loan to be refinanced has not of projects specifically designed for the 1969 and related laws and authorities. been in default within the 12 months use and occupancy by elderly families. The responsible entity will visit each prior to the date of the application for An elderly family means any household project site proposed for insurance refinancing; and where the head or spouse is 62 years of under this part and prepare the (4) A capital needs assessment is age or older, including children under applicable environmental reviews as set performed, and funds escrowed for all 18, and also any single person who is 62 forth in 24 CFR part 58. HUD may make necessary repairs and replacement years of age or older. a finding in accordance with 24 CFR reserves funded for future capital (h) Housing for older persons. Projects 58.11, Legal Capacity and Performance, repairs; and eligible for and in compliance with 42 and may perform the environmental (5) If the project is subject to a U.S.C. 3607(b) and 24 CFR part 100, review itself under 24 CFR part 50 Housing Assistance Payment (HAP) subpart E. (Protection and Enhancement of contract, and is not a project financed * * * * * Environmental Quality). In all cases the under section 202 of the Housing Act of environmental review must be 1959 (12 U.S.C. 1701q) by a Level I § 266.205 [Amended] completed before HUD may issue the participant, then: ■ 14. Amend § 266.205 in paragraph firm approval letter. (i) The owner of the property agrees (a)(1) by adding the word ‘‘calendar’’ ■ 18. Revise § 266.220 to read as to renew the HAP contract for a 20-year after the number ‘‘30’’ and in paragraph follows: term; (b)(2) by adding the letters ‘‘U.S.’’ before § 266.220 Nondiscrimination in housing (ii) Existing and post-refinance HAP the term ‘‘Department of Defense’’. and employment. residual receipts are set aside to be used ■ 15. Amend § 266.210 by: to reduce future HAP payments; and The mortgagor must certify to the ■ a. Removing paragraph (b); HFA that, so long as the mortgage is (iii) The HUD-insured mortgage does ■ b. Redesignating paragraphs (c), (d) insured under this part, the mortgagor not exceed an amount supportable by and (e) as paragraphs (b), (c) and (d), will: the lower of the unit rents being respectively; and (a) Not use tenant selection collected under the rental assistance ■ c. Revising newly redesignated procedures that discriminate against agreement or the unit rents being paragraphs (c) and (d). families with children, except in the collected at unassisted projects in the The revisions read as follows: case of a project qualifying for and market area that are similar in amenities complying with the requirements of the and location to the project for which § 266.210 HUD-retained review functions. ‘‘housing for older persons’’ exemption, insurance is being requested; and * * * * * as defined in section 807(b)(2) of the (6) For Level II participants only, the (c) Subsidy layering. The Fair Housing Act (42 U.S.C. 3607(b)) HUD-insured mortgage may not exceed Commissioner, or Housing Credit and further described in 24 CFR part the sum of the existing indebtedness, Agencies as defined by section 42 of the 100, subpart E. Projects receiving cost of refinancing, or acquisition, the Internal Revenue Code of 1986 (26 Federal financial assistance in which cost of repairs and reasonable U.S.C. 42), through such delegation as elderly families include minor children transaction costs as determined by the may be in effect by regulation hereafter, may not avail themselves of the housing Commissioner. (This paragraph does not shall review all projects receiving tax for older persons exemption; apply to Level I participants.) credits and some form of HUD (b) Determine eligibility for admission (d) Projects receiving section 8 rental assistance for any excess subsidy and continued occupancy without subsidies or other rental subsidies. provided to individual projects and regard to actual or perceived sexual Projects receiving project-based housing reduce subsidy sources in accordance orientation, gender identity, or marital assistance payments under section 8 of with outstanding guidelines. status and refrain from inquiries about the U.S. Housing Act of 1937 (42 (d) Davis-Bacon Act. The sexual orientation and gender identity U.S.C.1437f) or other rental subsidies Commissioner shall obtain and provide in accordance with 24 CFR 5.105(a)(2); and meeting the requirements of this to the HFA the appropriate U.S. (c)(1) Comply with: part may be insured under this part only Department of Labor wage rate (i) The Fair Housing Act (42 U.S.C. if the mortgage does not exceed an determinations under the Davis-Bacon 3601 through 3619), as implemented by amount supportable by the lower of the Act, where they apply under this part. 24 CFR part 100; unit rents being or to be collected under ■ 16. Amend § 266.215 by revising (ii) Titles II and III of the Americans the rental assistance agreement or the paragraph (e) to read as follows: with Disabilities Act of 1990 (42 U.S.C. unit rents being collected at unassisted 12101 through 12213), as implemented projects in the market that are similar in § 266.215 Functions delegated by HUD to by 28 CFR part 35; amenities and location to the project for HFAs. (iii) Section 3 of the Housing and which insurance is being requested. * * * * * Urban Development Act of 1968 (12 This paragraph does not apply to (e) Lead-based paint. The HFA will U.S.C. 1701u), as implemented by 24 projects of Level I participants if those perform functions related to Lead-based CFR part 135; projects are financed under section 202 paint requirements as set forth in 24 (iv) The Equal Credit Opportunity Act of the Housing Act of 1959 (12 U.S.C. CFR part 35, subparts A, B, G, and R. (15 U.S.C. 1691–1691f), as implemented 1701q). ■ 17. Add § 266.217 to read as follows: by 12 CFR part 202;

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(v) Executive Order 11063, as Bacon wage rates under paragraph (a) of or proposed Federally insured and amended by Executive Order 12259 (3 this section shall comply with all labor assisted projects in the area. CFR 1958–1963 Comp., p. 652 and 3 standards and provisions of the U.S. * * * * * CFR 1980 Comp., p. 307), and Department of Labor regulations in 29 (3) Arrange for the performance of an implemented by 24 CFR part 107; CFR parts 1, 3, and 5 that would be environmental review in accordance (vi) Executive Order 11246 (3 CFR applicable to a mortgage insurance with § 266.217; 1964–1965 Comp., p. 339), as program to which Davis-Bacon wage * * * * * implemented by 41 CFR part 60; and rates are made applicable by statute, (5) Approve the Affirmative Fair (vii) Other applicable Federal laws provided, that regulatory provisions Housing Marketing Plan, required by and regulations issued pursuant to these relating to investigations and § 266.215(a); and authorities; and applicable State and enforcement by the U.S. Department of local fair housing and equal opportunity Labor shall not be applicable, and * * * * * laws. enforcement of Davis-Bacon labor (c) HUD-retained reviews. After (2) In addition to the authorities listed standards shall be the responsibility of positive completion of the HUD- in paragraph (c)(1) of this section, a the Commissioner in accordance with retained reviews specified in mortgagor that receives Federal paragraph (e) of this section. § 266.210(a) and (b) the local HUD office financial assistance must also certify to (d) * * * will issue a firm approval letter. the HFA that, so long as the mortgage (1) No advance under a mortgage on * * * * * is insured under this part, it will a project subject to Davis-Bacon wage ■ 21. Amend § 266.305 by: comply with: rates under paragraph (a) of this section ■ a. Revising paragraphs (a) and (b)(1); (i) Title VI of the Civil Rights Act of shall be eligible for insurance under this ■ b. Redesignating paragraphs (b)(3), (4), 1964 (42 U.S.C. 2000d), as implemented part unless the HFA determines (in and (5) as paragraphs (b)(4), (5), and (6), by 24 CFR part 1; accordance with the Commissioner’s respectively; (ii) The Age Discrimination Act of administrative procedures) that the ■ c. Adding new paragraph (b)(3); 1975 (42 U.S.C. 6101 through 6107), as general contractor or any subcontractor ■ d. Revising newly redesignated implemented by 24 CFR part 146; and or any firm, corporation, partnership or paragraph (b)(5), and (iii) Section 504 of the Rehabilitation association in which the contractor or ■ e. Revising paragraph (c). Act of 1973 (29 U.S.C. 794), as subcontractor has a substantial interest The revisions and additions read as implemented by 24 CFR part 8. was not, on the date the contract or follows: ■ subcontract was executed, on the 19. Amend § 266.225 by revising § 266.305 HFAs accepting less than 50 paragraphs (a)(1) introductory text, ineligible list established by the percent of risk. Comptroller General of the United (a)(1)(i), (b), (c), (d)(1), and the second (a) Underwriting standards. The sentence of paragraph (e) to read as States, pursuant to 29 CFR 5.12, issued by the Secretary of Labor. underwriting standards and loan terms follows: and conditions of any HFA electing to * * * * * take less than 50 percent of the risk on § 266.225 Labor standards. (e) * * * Where routine (a) * * * certain projects are subject to review, administration and enforcement modification, and approval by HUD in (1) All laborers and mechanics functions are delegated to the HFA, the employed by contractors or accordance with § 266.100(b). These HFA shall bear financial responsibility HFAs may assume 25 percent or 10 subcontractors on a project insured for any deficiency in payment of under this part shall be paid not less percent of the risk depending upon the prevailing wages or, where applicable loan-to-replacement-cost or loan-to- than the wages prevailing in the locality under 29 CFR part 1 (Procedures for in which the work was performed for value ratios of the projects to be insured Predetermination of Wage Rates), any as specified in § 266.100(b)(2)(i) and (ii). the corresponding classes of laborers increase in compensation to a and mechanics employed in Large loans, as defined by HUD for its contractor, that is attributable to any insured multifamily mortgage programs, construction of a similar character, as failure properly to carry out its determined by the Secretary of the U.S. require prior approval by the delegated functions. * * * Commissioner. Department of Labor (Secretary of ■ 20. Amend § 266.300 by: Labor) in accordance with the Davis- (b) * * * ■ a. Revising paragraph (b)(1); Bacon Act, as amended (40 U.S.C. 3141 (1) Determine that a market for the ■ b. Redesignating paragraphs (b)(3), (4), et seq.), where the project meets all of project exists, taking into consideration and (5) as paragraphs (b)(4), (5), and (6), the following conditions: any comments from the local HUD respectively; (i) Advances for construction of the office relative to the potential adverse ■ c. Adding new paragraph (b)(3); project are insured under this part; impact the project will have on existing ■ d. Revising newly redesignated or proposed Federally insured and * * * * * paragraph (b)(5); and assisted projects in the area; (b) Volunteers. The provisions of this ■ e. Revising paragraph (c). section shall not apply to volunteers * * * * * The revisions and addition read as (3) Arrange for the performance of an under the conditions set out in 24 CFR follows: part 70 (Use of Volunteers on Projects environmental review in accordance Subject to Davis-Bacon and HUD- § 266.300 HFAs accepting 50 percent or with § 266.217; Determined Wage Rates). In applying 24 more of risk. * * * * * CFR part 70, insurance under this part * * * * * (5) Approve the Affirmative Fair shall be treated as a program for which (b) * * * Housing Marketing Plan, required by there is a statutory exemption for (1) Determine that a market for the § 266.215(a); and volunteers. project exists, taking into consideration * * * * * (c) Labor standards. Any contract, any comments from the local HUD (c) HUD-retained reviews. After subcontract, or building loan agreement office relative to the potential adverse positive completion of the HUD- executed for a project subject to Davis- impact the project will have on existing retained reviews specified in

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§ 266.210(a) and (b), the local HUD ■ 24. Revise § 266.500 to read as an amount established by the office will issue a firm approval letter. follows: Commissioner under § 266.604. * * * * * § 266.500 General. (b) Premium payable with first ■ 22. Amend § 266.410 by revising payment of principal. On the date of the paragraph (e) to read as follows: (a) HFA responsibility for monitoring first payment of principal the HFA shall project owners. The HFA will have full pay a second premium (calculated on a § 266.410 Mortgage provisions. responsibility for managing and per annum basis) in an amount * * * * * servicing projects insured under this established by the Commissioner under (e) Amortization. The mortgage must part (in accordance with procedures § 266.604. provide for complete amortization (i.e., disclosed and submitted with its (c) Subsequent premiums. Until one be regularly amortizing) over the term of application and the requirements of this of the conditions is met under the mortgage. The complete part). The HFA is responsible for § 266.606(a), the HFA on each amortization requirement does not monitoring and determining the anniversary of the date of the first apply to: compliance of the project owner in principal payment shall pay to the (1) Construction loans, or accordance with the provisions of this Commissioner an annual mortgage (2) Level I participants where the loan subpart. HUD will monitor the insurance premium in an amount has a minimum term of 17 years that performance of the HFA, not the project established by the Commissioner under would amortize over a maximum period owner, to determine its compliance with of 40 years and the HFA’s underwriting § 266.604, without taking into account the provisions covered under this delinquent payments, or partial claim standards, loan terms and conditions, subpart. and asset management and servicing payment under § 266.630, or (b) HUD review of procedures for prepayments, for the year following the procedures have been approved by HFAs with Level II approval. Asset HUD. date on which the premium becomes management and servicing procedures payable. * * * * * of any HFA electing to take less than 50 ■ ■ 23. Amend § 266.420 by revising the percent of the risk on certain projects 29. Amend § 266.602 by revising second sentence of paragraph (a) and are subject to review, modification, and paragraph (a), the first sentence of paragraphs (b)(3), (4), and (7) and approval by HUD in accordance with paragraph (b), the first sentence of adding paragraph (b)(13) to read as § 266.100(b). paragraph (c), and paragraph (d) to read follows: as follows: § 266.505 [Amended] § 266.602 Mortgage insurance premium: § 266.420 Closing and endorsement by the ■ 25. Amend § 266.505: Commissioner. Insured advances. ■ a. In paragraph (b)(8), after the word (a) Initial premium. For projects (a) * * * The note must provide that ‘‘Plan’’ by adding the phrase ‘‘, required involving insured advances, on the date the mortgage is insured under section by § 266.215(a),’’; of the initial closing, the HFA shall pay 542(c) of the Housing and Community ■ b. In paragraph (b)(10), by removing to the Commissioner an initial premium Development Act of 1992 and the the words ‘‘General Accounting’’ and regulations set forth in this part that are equal to an amount established by the adding in their place ‘‘U.S. Government in effect on the date of endorsement. Commissioner under § 266.604. Accountability’’. *** (b) Interim premium. On each ■ (b) * * * 26. Revise § 266.507 to read as anniversary of the initial closing, the (3) Certification that the loan has been follows: HFA shall pay an interim mortgage processed, prudently underwritten § 266.507 Maintenance requirements. insurance premium in an amount (including a determination that a market The mortgagor must maintain the established by the Commissioner under exists for the project), cost certified (if § 266.604. * * * the project is being submitted for final project in accordance with the physical (c) Premium payable with first endorsement) and closed in full condition standards in 24 CFR part 5, payment of principal. On the date of the compliance with the HFA’s standards subpart G (Physical Condition first principal payment, the HFA shall and requirements (or where the Standards and Inspection pay a mortgage insurance premium in mortgage is insured under Level II, in Requirements). an amount established by the full compliance with the underwriting ■ 27. Amend § 266.510 by revising Commissioner under § 266.604. * * * standards, loan terms and conditions, paragraph (a) to read as follows: and asset management and servicing (d) Subsequent premiums. Until one procedures, as approved by HUD). § 266.510 HFA responsibilities. of the conditions is met under (4) At the time of final endorsement, (a) Inspections. The HFA must § 266.606(a), the HFA on each for periodic advances cases, a perform inspections in accordance with anniversary of the date of the first certification that the advances were the physical inspection procedures in principal payment shall pay to the made in accordance with the mortgage 24 CFR part 5, subpart G (Physical Commissioner an annual mortgage pursuant to § 266.310. Condition Standards and Inspection insurance premium in an amount * * * * * Requirements). established by the Commissioner under (7) A certification that the HFA has * * * * * § 266.604, without taking into account delinquent payments, prepayments, or a reviewed and approved the Affirmative ■ 28. Revise § 266.600 to read as partial claim payment under § 266.630, Fair Housing Marketing Plan, required follows: by § 266.215(a), and found it acceptable. for the year following the date on which the premium becomes payable. * * * * * § 266.600 Mortgage insurance premium: (13) Certification that housing Insurance upon completion. ■ 30. Amend § 266.604 by revising claiming the housing for older persons (a) Initial premium. For projects paragraphs (a) and (b), the first sentence exemption is eligible for and complies insured upon completion, on the date of of paragraph (c), and the second and with 42 U.S.C. 3607(b) and 24 CFR part the final closing, the HFA shall pay to third sentences of paragraph (d) to read 100, subpart E. the Commissioner an initial premium in as follows:

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§ 266.604 Mortgage insurance premium: for the full amount of the mortgage (d) Requirements—(1) One partial Other requirements. claim. claim payment. Only one partial claim (a) Premium calculations on or after ■ 32. Amend § 266.626 by revising the payment may be made under a contract first principal payment. The premiums first sentence of paragraph (c) and of insurance. payable to the Commissioner on and revising paragraph (d) to read as (2) Partial claim payment amount. after the first principal payment shall be follows: The amount of the partial claim calculated in accordance with the payment is limited to 50% of the amortization schedule prepared by the § 266.626 Notice and date of termination amount of relief provided by the HFA in HFA for final closing and an amount by the Commissioner. the form of a reduction in principal and established by the Commissioner * * * * * a reduction of delinquent interest due through a notice published in the (c) Notice of default. If a default (as on the insured mortgage times the lesser Federal Register and providing a 30-day defined in paragraph (a) of this section) of HUD’s percentage of the risk of loss comment period. After the comments continues for a period of 30 calendar or 50 percent. have been considered, HUD will publish days, the HFA must notify the * * * * * a final notice announcing the premium Commissioner within 10 calendar days (4) Partial claim repayment by HFA. and its effective date. The premium thereafter, unless the default is cured The HFA must remit to HUD a shall not take into account delinquent within the 30-day period. * * * percentage of all amounts collected on payments or prepayments. (d) Timing of claim filing. Unless a the HFA’s second mortgage within 15 (b) Future premium changes. Notice written extension is granted by HUD, calendar days of receipt by the HFA. of future premium changes will be the HFA must file an application for The applicable percentage is equal to published in the Federal Register. The initial claim payment (or, if appropriate, the percentage used in paragraph (d)(2) Commissioner will propose mortgage for partial claim payment) within 75 of this section to determine the partial insurance premium changes for the calendar days from the date of default claim payment amount. Payments made Risk-Sharing Program and provide a 30- and may do so as early as the first day after the 15th day must include a 5 calendar day public comment period for of the month following the month for percent late charge plus accrued interest the purpose of accepting comments on which a payment was missed. Upon at the debenture rate. whether the proposed changes are request of the HFA, HUD may extend, (5) * * * The HFA must submit a appropriate. After the comments have up to 180 calendar days from the date final certified statement within 30 been considered, HUD will publish a of default, the deadline for filing a calendar days after the second mortgage final notice announcing the premium claim. In those cases where the HFA is paid in full, foreclosed, or otherwise and its effective date. certifies that the project owner is in the terminated. (c) Closing information. The HFA process of transacting a bond refunder, shall provide final closing information refinancing the mortgage, or changing § 266.634 [Amended] to the Commissioner within 15 calendar the ownership for the purpose of curing ■ 35. Amend § 266.634 in paragraph (c) days of the final closing in a format the default and bringing the mortgage by adding the word ‘‘calendar’’ before prescribed by the Commissioner. * * * current, HUD may extend the deadline the word ‘‘days’’ in the first sentence. (d) Due date for premium payments. for filing a claim beyond 180 calendar * * * Any premium received by the days, not to exceed 360 calendar days § 266.638 [Amended] Commissioner more than 15 calendar from the date of default. ■ 36. Amend § 266.638 by: days after the due date shall be assessed ■ 33. Amend § 266.628 by revising ■ a. Adding the word ‘‘calendar’’ before a late charge of 4 percent of the amount paragraph (a)(3) to read as follows: of the premium payment due. Mortgage the word ‘‘days’’ in the first sentence of insurance premiums that are paid to the § 266.628 Initial claim payments. paragraph (a); Commissioner more than 30 calendar (a) * * * ■ b. Removing the word ‘‘five’’ from the days after the due date shall begin to (3) The HFA must use the proceeds of second sentence of paragraph (b) and accrue interest at the rate prescribed by the initial claim payment to retire any adding in its place the number ‘‘5’’; the Treasury Fiscal Requirements bonds or any other financing ■ c. Removing the words ‘‘five year’’ Manual. mechanisms securing the mortgage from the third sentence of paragraph (b) ■ 31. Amend § 266.620 by: within 30 calendar days of the initial and adding in their place ‘‘5-year’’. ■ a. Revising the section heading; claim payment. Any excess funds § 266.642 [Amended] ■ b. Redesignating the introductory text resulting from such retirement or as paragraph (a) and redesignating repayment shall be returned to HUD ■ 37. Amend § 266.642 in the third paragraphs (a) through (g), as paragraphs within 30 calendar days of the sentence of by removing the phrase ‘‘45- (a)(1) through (7), respectively; and retirement. day’’ and adding in its place the phrase ■ c. Adding new paragraph (b). ‘‘45-calendar-day’’. The revision and addition read as * * * * * follows: ■ 34. Amend § 266.630 by revising the § 266.644 [Amended] second sentence of paragraph (c)(2), ■ 38. Amend § 266.644 in the § 266.620 Termination of contract of paragraphs (d)(1), (2), and (4), and the introductory text by adding the word insurance and indemnification. second sentence of paragraph (d)(5) to ‘‘calendar’’ before the word ‘‘days’’. * * * * * read as follows: (b) In lieu of termination of the § 266.648 [Amended] mortgage insurance contract pursuant to § 266.630 Partial payment of claims. paragraph (a)(5) of this section, the * * * * * ■ 39. Amend § 266.648 in paragraph Commissioner may, in his or her full (c) * * * (c)(4) by removing the words ‘‘the Office discretion, permit a Level I participant (2) * * * The HFA is granted an of General Counsel’’ and adding in their rated ‘‘A’’ or higher to indemnify HUD, extension of 30 calendar days from the place ‘‘HUD’’. or otherwise reimburse HUD in a date of any notification for further ■ 40. Amend§ 266.650 by revising manner acceptable to the Commissioner, action. paragraph (a) to read as follows:

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§ 266.650 Items deducted from total loss. deposit) that were not delivered to the proposed regulations include in the * * * * * account designated to receive the direct definition of a misdirected direct (a) All amounts received by the HFA deposit refund on the federal tax return deposit refund only those refunds on account of the mortgage after the date or other claim for refund. Section which are actually issued as a direct of default, including any partial 6402(n) was added to the Code by deposit. A misdirected direct deposit payment of claim paid by HUD in the section 1407 of the Taxpayer First Act, refund does not include an overpayment event a full claim follows a partial Public Law 116–25, 133 Stat. 981 (2019) that is credited against another payment of claim; (TFA) on July 1, 2019. On December 23, outstanding tax liability of the taxpayer * * * * * 2019, the Department of the Treasury pursuant to section 6402(a) or that is (Treasury Department) and the IRS offset pursuant to the law. An § 266.654 [Amended] published in the Federal Register (84 overpayment that is offset or applied as ■ 41. Amend § 266.654 in paragraph (b) FR 70462) a notice of proposed mandated by law is not a misdirected by adding the word ‘‘calendar’’ before rulemaking (REG–116163–19) providing direct deposit refund because these the word ‘‘days’’ in the first sentence. the procedures under section 6402(n) actions are mandated by law. Section for reporting, identification, and 301.6402–2(g)(1) of the final regulations Dana T. Wade, recovery of a misdirected direct deposit clarifies this by striking the last Assistant Secretary for Housing—Federal refund. The Treasury Department and sentence from the proposed regulations, Housing Commissioner. the IRS received one comment as it is not needed to define a [FR Doc. 2020–27914 Filed 12–21–20; 8:45 am] responding to the proposed regulations. ‘‘misdirected direct deposit refund.’’ BILLING CODE 4210–67–P The comment is available at Instead, the final regulations clarify in www.regulations.gov or upon request. section 301.6402–2(g)(3)(i) that the No public hearing was requested or held offset or setoff of an overpayment occurs DEPARTMENT OF THE TREASURY on the proposed regulations. prior to the issuance of a direct deposit. After consideration of the written The IRS will determine if a reported Internal Revenue Service comment, this Treasury Decision adopts missing refund is setoff or offset as part the proposed regulations as final of the procedure for the identification of 26 CFR Part 301 regulations with minor modifications, as the account that received the misdirected direct deposit refund. This [TD 9940] described in the Summary of Comments and Explanation of Provisions. A reorganization simplifies the definition RIN 1545–BP41 detailed explanation of these regulations of a misdirected direct deposit refund can be found in the preamble to the and more accurately describes the Misdirected Direct Deposit Refunds proposed regulations. process of identification of a AGENCY: Internal Revenue Service (IRS), misdirected direct deposit refund. Summary of Comments and The final regulations reflect this Treasury. Explanation of Provisions clarification to the definition of a ACTION: Final regulations. The Treasury Department and the IRS misdirected direct deposit refund and SUMMARY: These final regulations received one comment regarding the the identification procedure, but the provide the procedures under section proposed regulations. After proposed regulations are otherwise 6402(n) of the Internal Revenue Code consideration of the comment, the adopted without change. (Code) for identification and recovery of proposed regulations are adopted as Special Analyses a misdirected direct deposit refund. The final regulations without any This regulation is not subject to final regulations reflect changes to the substantive changes. review under section 6(b) of Executive law made by the Taxpayer First Act. I. Applicability Date Order 12866 pursuant to the The final regulations affect taxpayers A commenter expressed a concern Memorandum of Agreement (April 11, who have made a claim for refund, that the procedures in these regulations 2018) between the Treasury Department requested the refund be issued as a would not apply to claims for refund and the Office of Management and direct deposit, but did not receive a from taxable years before the Budget regarding review of tax refund in the account designated on the applicability date of the final regulations. claim for refund. regulations. The commenter requested These regulations do not impose any DATES: that the procedures should be applied to additional information collection Effective date: These regulations are refund claims for prior years. Consistent requirements in the form of reporting, effective on December 22, 2020. with the comment, the final regulations recordkeeping requirements, or third- Applicability date: These regulations clarify that these procedures apply to party disclosure requirements related to apply to reports to the IRS made after any report of a misdirected direct tax compliance. However, because a [date of publication] that a taxpayer deposit refund for a current or prior year taxpayer or a taxpayer’s representative never received a direct deposit refund. submitted after the publication of the may elect to report a missing refund FOR FURTHER INFORMATION CONTACT: final regulations in the Federal Register. using the procedures described in Mary C. King at (202) 317–5433 (not a § 301.6402–2(g)(2)(ii)(B), some taxpayers toll-free number). II. Coordination With Financial may use a form to report a missing Institutions SUPPLEMENTARY INFORMATION: refund. The collection of information in Section 301.6402–2(g)(1) of the § 301.6402–2(g)(2)(ii)(B) is through use Background proposed regulations defines of a Form 3911, ‘‘Taxpayer Statement This document contains amendments ‘‘misdirected direct deposit refund’’ as Regarding Refund,’’ and is the sole to 26 CFR part 301 under section any refund of an overpayment of tax collection of information requirement 6402(n) of the Code and provides that is disbursed as a direct deposit but established by the final regulations. guidance on the procedures used to is not deposited into the account For the purposes of the Paperwork identify and recover tax refunds issued designated on the claim for refund to Reduction Act, 44 U.S.C. 3501–3520, by electronic funds transfer (direct receive the direct deposit refund. The the reporting burden associated with the

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collection of information with respect to actions before issuing a final rule that adding a sentence at the end of the section 6402(n) will be reflected in includes any Federal mandate that may paragraph. Paperwork Reduction Act submissions result in expenditures in any one year The additions and revision read as for IRS Form 3911 (OMB Control by a state, local, or tribal government, in follows: Number 1545–1384). The estimated the aggregate, or by the private sector, of § 301.6402–2 Claims for credit or refund. average time to complete Form 3911 is $100 million in 1995 dollars, updated five minutes. However, use of a form is annually for inflation. This regulation * * * * * not required in every case. There are does not include any Federal mandate (g) Misdirected direct deposit certain situations in which a taxpayer that may result in expenditures by state, refund—(1) Definition. The term may instead elect to investigate a local, or tribal governments, or by the misdirected direct deposit refund missing refund over the telephone or in private sector in excess of that includes any refund of an overpayment person at the Office of the Taxpayer threshold. of tax that is disbursed as a direct Advocate and, after the IRS identifies Executive Order 13132 (titled deposit but is not deposited into the the tax refund and informs the taxpayer Federalism) prohibits an agency from account designated on the claim for that the refund was issued as a direct publishing any rule that has federalism refund to receive the direct deposit deposit, orally report that the already- implications if the rule either imposes refund. identified refund is missing. An agency substantial, direct compliance costs on (2) Procedures for reporting a may not conduct or sponsor, and a state and local governments, and is not misdirected direct deposit refund—(i) In person is not required to respond to, a required by statute, or preempts state general. A taxpayer or a taxpayer’s collection of information unless it law, unless the agency meets the authorized representative may report to displays a valid control number consultation and funding requirements the IRS that the taxpayer never received assigned by the Office of Management of section 6 of the Executive Order. This a direct deposit refund and request a and Budget. rule does not have federalism replacement refund. The report must It is hereby certified that these implications and does not impose include the name of the taxpayer who regulations will not have a significant substantial direct compliance costs on requested the refund, the taxpayer economic impact on a substantial state and local governments or preempt identification number of the taxpayer, number of small entities within the state law, within the meaning of the the taxpayer’s mailing address, the type meaning of section 601(6) of the Executive Order. of return to which the refund is related, Regulatory Flexibility Act (5 U.S.C. the account number and routing number chapter 6). The certification is based on Drafting Information that the taxpayer requested the refund the information that follows. There is no The principal author of these be directly deposited into, and any other significant impact from these regulations is Mary C. King of the Office information necessary to locate the regulations on any small entity utilizing of the Associate Chief Counsel misdirected direct deposit refund. the procedures prescribed by these (Procedure and Administration). Other (ii) How to report a misdirected direct regulations to report a missing refund personnel from the Treasury deposit refund. A reporting described in because there is no significant cost Department and the IRS participated in paragraph (g)(2)(i) of this section may be associated with reporting a missing the development of the regulations. made in the following ways: refund. There is no fee charged in (A) By calling the IRS; connection with reporting a missing List of Subjects in 26 CFR Part 301 (B) On the form prescribed by the IRS and in accordance with the applicable refund, and the estimated time to Employment taxes, Estate taxes, publications, instructions, or other complete a Form 3911, ‘‘Taxpayer Excise taxes, Gift taxes, Income taxes, Statement Regarding Refund,’’ is five appropriate guidance; Penalties, Reporting and recordkeeping (C) By contacting the Office of the minutes. There are no tax consequences requirements. associated with the final rule, as it Taxpayer Advocate by telephone, by merely sets forth the procedures for Adoption of Amendments to the mail, facsimile, or in person; or reporting a missing refund and Regulations (D) By submitting the appropriate describes the process the IRS uses in form in person at a Taxpayer Assistance Accordingly, 26 CFR part 301 is Center. locating a missing refund and, in some amended as follows: instances, issuing a replacement refund. (3) Procedures for coordination with The process in these regulations mirrors PART 301—PROCEDURE AND financial institutions—(i) Identification the existing process and does not ADMINISTRATION of the account that received the change the reporting burden. misdirected direct deposit refund. If the Accordingly, the Treasury Department ■ Paragraph 1. The authority citation IRS receives a report described in and the IRS have determined that this for part 301 is amended by adding an paragraph (g)(2)(ii) of this section, the Treasury Decision will not have a entry in numerical order for § 301.6402– IRS will confirm that the overpayment significant economic impact on a 2(g) to read in part as follows: was issued as a direct deposit. The IRS will confirm that the overpayment was substantial number of small entities. Authority: 26 U.S.C. 7805 * * * Pursuant to section 7805(f) of the Code, not credited or offset pursuant to the the notice of proposed rulemaking * * * * * law in effect immediately prior to the Section 301.6402–2(g) also issued under 26 direct deposit being disbursed. If the preceding this regulation was submitted U.S.C. 6402(n). to the Chief Counsel for Advocacy of the direct deposit described in the report Small Business Administration for * * * * * was issued, the IRS will initiate a refund comment on its impact on small ■ Par. 2. Section 301.6402–2 is trace to request the assistance of the business entities, and no comments amended by: Department of the Treasury’s Bureau of were received. ■ 1. Redesignating paragraph (g) as the Fiscal Service. In accordance with Section 202 of the Unfunded paragraph (h) and adding new its own procedures, the Bureau of the Mandates Reform Act of 1995 requires paragraph (g). Fiscal Service coordinates with the that agencies assess anticipated costs ■ 2. Revising the subject heading of financial institution that holds directly and benefits and take certain other newly redesignated paragraph (h) and or indirectly the deposit account into

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which the refund was made, requesting DEPARTMENT OF HOMELAND to the public interest.’’ Under 5 U.S.C. from the financial institution such SECURITY 553(b)(B), the Coast Guard finds that information as is necessary to identify good cause exists for not publishing a whether the financial institution Coast Guard notice of proposed rulemaking (NPRM) received the refund; whether the with respect to this rule because it financial institution returned, or will 33 CFR Part 165 would be impracticable. The Coast return, the refund to the IRS, or if no [Docket Number USCG–2020–0716] Guard was unable to publish an NPRM funds are available for return; whether and hold a comment period for this a deposit was made into the account RIN 1625–AA00 rulemaking due to the short time period designated on the claim for refund; and the Captain of the Port St. Petersburg Safety Zone; Pipeline Testing; Tampa the identity of the deposit account (COTP) was notified of the need for the Bay, Gibsonton, FL owner to whom the deposit was safety zone. It is necessary for the Coast disbursed. AGENCY: Coast Guard, DHS. Guard to establish this safety zone by (ii) Coordination to recover the ACTION: Temporary final rule. January 1, 2021, in order to ensure the amounts transferred. Recovery of the appropriate level of protection exists in misdirected direct deposit refund from SUMMARY: The Coast Guard is order to mitigate the potential safety a financial institution shall follow the establishing a temporary safety zone for hazards associated with pipeline procedures established by the Bureau of certain waters in the navigable waters of pressure testing in the event of an the Fiscal Service. The Bureau of the Tampa Bay, Gibsonton, FL. The safety explosion. Fiscal Service shall request the return of zone is needed to protect personnel, Under 5 U.S.C. 553(d)(3), the Coast the misdirected direct deposit refund vessels, and the marine environment Guard finds that good cause exists for from the financial institution that from potential hazards created by making this rule effective less than 30 received it. The IRS may contact the pipeline pressure testing in the area. days after publication in the Federal financial institution directly to recover Entry of vessels or persons into this Register. Delaying the effective date of the misdirected direct deposit refund. zone is prohibited unless specifically this rule for the same reasons stated in authorized by the Captain of the Port St. (4) Issuance of replacement refund. the preceding paragraph. Petersburg. When the IRS has determined that a III. Legal Authority and Need for Rule misdirected direct deposit refund has DATES: This rule is effective from 12:01 occurred, the IRS will issue a a.m. on January 1, 2021, through 7:00 The Coast Guard is issuing this rule replacement refund in the full amount a.m. on January 4, 2021. under authority in 46 U.S.C. 70034. The of the refund that was misdirected. The ADDRESSES: To view documents COTP has determined that potential replacement refund may be issued as a mentioned in this preamble as being hazards associated with pipeline direct deposit or as a paper check sent available in the docket, go to https:// pressure testing starting January 1, 2021 to the taxpayer’s last known address. www.regulations.gov, type USCG–2020– will be a safety concern for anyone 0716 in the ‘‘SEARCH’’ box and click (5) Applicability of this paragraph (g) within this safety zone in the event of ‘‘SEARCH.’’ Click on Open Docket to missing refunds. The provisions of an explosion. This rule is needed to Folder on the line associated with this paragraphs (g)(2) through (g)(3)(i) of this protect personnel, vessels, and the rule. section should be used for any refund marine environment in the navigable that was disbursed as a direct deposit FOR FURTHER INFORMATION CONTACT: If waters within the safety zone while the and that the taxpayer reports as missing. you have questions on this rule, call or testing is occuring. email Marine Science Technician First For example, although a refund that was IV. Discussion of the Rule deposited into an incorrect bank Class Michael D. Shackleford, Sector St. account because the taxpayer Petersburg Prevention Department, This rule establishes a safety zone transposed two digits in their bank Coast Guard; telephone (813) 228–2191, from 12:00 a.m. on January 1, 2021, account number is not considered to be email [email protected]. until 7:00 a.m. on January 4, 2021. The a misdirected direct deposit refund, the SUPPLEMENTARY INFORMATION: safety zone will cover all navigable waters of Tampa Bay, east of a line provisions of paragraphs (g)(2) through I. Table of Abbreviations (g)(3)(i) of this section should be used. formed by connecting the points of If the application of these procedures CFR Code of Federal Regulations 27°48′9″ N, 082°24′56″ W and 27°48′0″ results in an amount recovered by the DHS Department of Homeland Security N, 082°24′56″ W. The duration of the IRS, the recovered amount will be FR Federal Register zone is intended to protect personnel, refunded or credited as allowed by law. NPRM Notice of proposed rulemaking vessels, and the marine environment in § Section (h) Applicability dates. *** U.S.C. United States Code these navigable waters while pipeline Paragraph (g) of this section applies to pressure testing is occuring. No vessel II. Background Information and reports described in paragraph (g)(2)(ii) or person will be permitted to enter the Regulatory History of this section made after December 22, safety zone without obtaining 2020. The Coast Guard is issuing this permission from the COTP or a temporary rule without prior notice and designated representative. Sunita Lough, opportunity to comment pursuant to V. Regulatory Analyses Deputy Commissioner for Services and authority under section 4(a) of the Enforcement. Administrative Procedure Act (APA) (5 We developed this rule after Approved: December 8, 2020. U.S.C. 553(b)). This provision considering numerous statutes and David J. Kautter, authorizes an agency to issue a rule Executive orders related to rulemaking. Assistant Secretary of the Treasury (Tax without prior notice and opportunity to Below we summarize our analyses Policy). comment when the agency for good based on a number of these statutes and [FR Doc. 2020–28167 Filed 12–18–20; 4:15 pm] cause finds that those procedures are Executive orders, and we discuss First BILLING CODE 4830–01–P ‘‘impracticable, unnecessary, or contrary Amendment rights of protestors.

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A. Regulatory Planning and Review annually and rates each agency’s category of actions that do not Executive Orders 12866 and 13563 responsiveness to small business. If you individually or cumulatively have a direct agencies to assess the costs and wish to comment on actions by significant effect on the human benefits of available regulatory employees of the Coast Guard, call 1– environment. This rule involves a safety alternatives and, if regulation is 888–REG–FAIR (1–888–734–3247). The zone lasting approximately 4 days that necessary, to select regulatory Coast Guard will not retaliate against will prohibit entry to all navigable approaches that maximize net benefits. small entities that question or complain waters of Tampa Bay, east of a line about this rule or any policy or action formed by connecting the points of Executive Order 13771 directs agencies ° ′ ″ ° ′ ″ ° ′ ″ to control regulatory costs through a of the Coast Guard. 27 48 9 N, 082 24 56 W and 27 48 0 N, 082°24′56″ W. It is categorically budgeting process. This rule has not C. Collection of Information been designated a ‘‘significant excluded from further review under This rule will not call for a new paragraph L60 of Appendix A, Table 1 regulatory action,’’ under Executive collection of information under the Order 12866. Accordingly, this rule has of DHS Instruction Manual 023–01– Paperwork Reduction Act of 1995 (44 001–01, Rev. 1. A Memorandum for not been reviewed by the Office of U.S.C. 3501–3520). Management and Budget (OMB), and Record supporting this determination is pursuant to OMB guidance it is exempt D. Federalism and Indian Tribal available in the docket. For instructions from the requirements of Executive Governments on locating the docket, see the ADDRESSES section of this preamble. Order 13771. A rule has implications for federalism This regulatory action determination under Executive Order 13132, G. Protest Activities is based on the size, location, duration, Federalism, if it has a substantial direct and time-of-day of the safety zone. This The Coast Guard respects the First effect on the States, on the relationship Amendment rights of protesters. area of Tampa Bay is not in a critical between the National Government and navigation area. Protesters are asked to call or email the the States, or on the distribution of person listed in the FOR FURTHER B. Impact on Small Entities power and responsibilities among the INFORMATION CONTACT section to various levels of government. We have The Regulatory Flexibility Act of coordinate protest activities so that your analyzed this rule under that Order and message can be received without 1980, 5 U.S.C. 601–612, as amended, have determined that it is consistent requires Federal agencies to consider jeopardizing the safety or security of with the fundamental federalism people, places or vessels. the potential impact of regulations on principles and preemption requirements small entities during rulemaking. The described in Executive Order 13132. List of Subjects in 33 CFR Part 165 term ‘‘small entities’’ comprises small Also, this rule does not have tribal businesses, not-for-profit organizations Harbors, Marine safety, Navigation implications under Executive Order (water), Reporting and recordkeeping that are independently owned and 13175, Consultation and Coordination operated and are not dominant in their requirements, Security measures, with Indian Tribal Governments, Waterways. fields, and governmental jurisdictions because it does not have a substantial with populations of less than 50,000. direct effect on one or more Indian For the reasons discussed in the The Coast Guard certifies under 5 U.S.C. tribes, on the relationship between the preamble, the Coast Guard amends 33 605(b) that this rule will not have a Federal Government and Indian tribes, CFR part 165 as follows: significant economic impact on a or on the distribution of power and substantial number of small entities. PART 165—SAFETY ZONE; PIPELINE responsibilities between the Federal TESTING; TAMPA BAY, GIBSONTON, While some owners or operators of Government and Indian tribes. vessels intending to transit the safety FL zone may be small entities, for the E. Unfunded Mandates Reform Act ■ 1. The authority citation for part 165 reasons stated in section V.A above, this The Unfunded Mandates Reform Act continues to read as follows: rule will not have a significant of 1995 (2 U.S.C. 1531–1538) requires economic impact on any vessel owner Federal agencies to assess the effects of Authority: 46 U.S.C. 70034; 46 U.S.C. or operator. their discretionary regulatory actions. In 70051; 33 CFR 1.05–1, 6.04–1, 6.04–6, and Under section 213(a) of the Small particular, the Act addresses actions 160.5; Department of Homeland Security Delegation No. 0170.1. Business Regulatory Enforcement that may result in the expenditure by a Fairness Act of 1996 (Pub. L. 104–121), State, local, or tribal government, in the ■ 2. Add § 165.T07–0716 to read as we want to assist small entities in aggregate, or by the private sector of follows: understanding this rule. If the rule $100,000,000 (adjusted for inflation) or would affect your small business, more in any one year. Though this rule § 165.T07–0716 Safety Zone; Pipeline Testing; Tampa Bay, Gibsonton, FL. organization, or governmental will not result in such an expenditure, jurisdiction and you have questions we do discuss the effects of this rule (a) Location. The following regulated concerning its provisions or options for elsewhere in this preamble. area is a safety zone: All navigable compliance, please call or email the waters of Tampa Bay, east of a line person listed in the FOR FURTHER F. Environment formed by connecting the points of INFORMATION CONTACT section. We have analyzed this rule under 27°48′9″ N, 082°24′56″ W and 27°48′0″ Small businesses may send comments Department of Homeland Security N, 082°24′56″ W in the vicinity of on the actions of Federal employees Directive 023–01, Rev. 1, associated Gibsonton, Florida. who enforce, or otherwise determine implementing instructions, and (b) Definition. The term ‘‘designated compliance with, Federal regulations to Environmental Planning COMDTINST representative’’ means Coast Guard the Small Business and Agriculture 5090.1 (series), which guide the Coast Patrol Commanders, including Coast Regulatory Enforcement Ombudsman Guard in complying with the National Guard coxswains, petty officers, and and the Regional Small Business Environmental Policy Act of 1969 (42 other officers operating Coast Guard Regulatory Fairness Boards. The U.S.C. 4321–4370f), and have vessels, and Federal, state, and local Ombudsman evaluates these actions determined that this action is one of a officers designated by or assisting the

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Captain of the Port St. Petersburg in the I. Proposed Rule and Response January 24, 2021. Final prices are enforcement of the regulated area. On October 9, 2020, the Postal Service available under Docket No. R2021–1 (c) Regulations. (1) All persons and filed a notice with the PRC in Docket (Order No. 5757) on the Postal vessels are prohibited from entering, Number R2021–1 of mailing services Regulatory Commission’s website at transiting through, anchoring in, or price adjustments to be effective on www.prc.gov. remaining within the regulated area January 24, 2021. On October 15, 2020, Seamless Acceptance Incentive unless authorized by the Captain of the USPS® published a notification of Port St. Petersburg or a designated proposed product and price changes in USPS is providing a $.001 per representative. the Federal Register entitled mailpiece incentive. The incentive is (2) Designated representatives may ‘‘International Mailing Services: available for First-Class Mail, USPS control vessel traffic throughout the Proposed Product and Price Changes— Marketing Mail, Periodicals and Bound enforcement area as determined by the CPI’’ (85 FR 65310). The notification Printed Matter mail flats that use the prevailing conditions. included price changes that the Postal Full-Service Intelligent Mail barcode (3) Persons and vessels may request Service would adopt for products and (IMb) option. The change provides an authorization to enter, transit through, services covered by Mailing Standards incentive to the Electronic anchor in, or remain within the of the United States Postal Service, Documentation (eDoc) submitters (with regulated areas by contacting the International Mail Manual (IMM®) and a Seamless CRID and an Enterprise Captain of the Port St. Petersburg by publish in Notice 123, Price List, on Payment System Account) for adoption telephone at (727) 824–7506, or a Postal Explorer® at pe.usps.com. The of the program. The incentive would be designated representative via VHF radio Postal Service received no comments. based on the eDoc submitter’s Customer on channel 16. If authorization is Registration ID (CRID). II. Decision of the Postal Regulatory granted by the Captain of the Port St. A Seamless Mailer is defined by their Commission Petersburg or a designated CRID’s status in PostalOne! as representative, all persons and vessels As stated in the PRC’s Order No. ‘‘Seamless Acceptance.’’ Note: Seamless receiving such authorization must 5757, issued on November 18, 2020, in Parallel does not qualify for the comply with the instructions of the PRC Docket No. R2021–1, the PRC discount. The proposal is to allow Captain of the Port St. Petersburg or a found that the prices in the Postal Electronic Documentation (eDoc) designated representative. Service’s notification may go into effect submitters to receive a Seamless (d) Enforcement period. This rule will on January 24, 2021. The new prices Acceptance incentive for the pieces that be enforced daily from 12:01 a.m. on will accordingly be posted in Notice claim Full-Service prices in the mailing, January 1, 2021, through 7:00 a.m. on 123, Price List on Postal Explorer at provided the eDoc submitter has an January 4, 2021. pe.usps.com. Enterprise Payment account that is used for the incentive. Dated: December 16, 2020. Joshua J. Hofer, • The incentive is available to all Matthew A. Thompson, Attorney, Federal Compliance. eDoc submitters with a Seamless Captain, U.S. Coast Guard, Captain of the [FR Doc. 2020–27021 Filed 12–21–20; 8:45 am] Acceptance CRID and an Enterprise Port St. Petersburg. BILLING CODE 7710–12–P Payment account who enroll in [FR Doc. 2020–28161 Filed 12–21–20; 8:45 am] PostalOne! BILLING CODE 9110–04–P • The incentive is applied to the POSTAL SERVICE Enterprise Payment account that corresponds with the permit selected 39 CFR Part 111 during registration to receive the POSTAL SERVICE New Mailing Standards for Domestic discount. • Mailing Services Products A permit that corresponds with an 39 CFR Part 20 Enterprise Payment trust or ACH debit AGENCY: Postal ServiceTM. International Mailing Services: Mailing account must be selected, in PostalOne!, Services Product and Price Changes ACTION: Final rule. to receive the incentive. Trust accounts will receive the incentive upon postage TM SUMMARY: On October 9, 2020, the Postal AGENCY: Postal Service . ® statement finalization and ACH debit Service (USPS ) filed a notice of accounts will receive the incentive as a ACTION: Final action. mailing services price adjustments with daily aggregate. the Postal Regulatory Commission • SUMMARY: Mail.dat changes: No impact—Use On October 15, 2020, the (PRC), effective January 24, 2021. This Postal Service published proposed existing Segment Record’s (.seg) ‘‘eDoc final rule contains the revisions to Sender CRID’’ field to identify the CRID product and price changes to reflect a Mailing Standards of the United States notice of price adjustments filed with of the eDoc submitter. Postal Service, Domestic Mail Manual • the Postal Regulatory Commission ® Mail.XML changes: No impact—Use (DMM ) to implement the changes existing OpenMailingGroupRequest > (PRC). The PRC found that price coincident with the price adjustments. adjustments contained in the Postal MailingGroupData > DATES: Service’s notification may go into effect Effective Date: January 24, 2021. MailingFacilityfield to identify the CRID on January 24, 2021. The Postal Service FOR FURTHER INFORMATION CONTACT: of the eDoc submitter. will revise Notice 123, Price List to Jacqueline Erwin at (202) 268–2158 or • Postage Statement Changes: No reflect the new prices. Dale Kennedy at (202) 268–6592. impact—For eligible mailings the SUPPLEMENTARY INFORMATION: On postage may be paid using any DATES: The revisions to Notice 123, authorized payment account. Price List, are effective January 24, 2021. November 18, 2020, the PRC favorably reviewed the price adjustments • Intelligent Mail for Small FOR FURTHER INFORMATION CONTACT: proposed by the Postal Service. The Business—Mailing Agent CRID (same as Kathy Frigo at 202–268–4178. price adjustments and DMM revisions Permit Holder CRID) is used as the eDoc SUPPLEMENTARY INFORMATION: are scheduled to become effective on Submitter CRID.

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• Business Mail Entry Unit—Hard- DEPARTMENT OF COMMERCE for the authorization of take of marine copy Postage Statement entry (only for mammals incidental to Hilcorp and contingency)—Mailing Agent CRID National Oceanic and Atmospheric Eni’s ice roads and ice trails must be populated on the Postage Administration construction and maintenance activities Statement. on Alaska’s North Slope. 50 CFR Part 217 We received an application from • Shipping Services File (SSF) [Docket No. 20119–0307] Hilcorp and Eni requesting 5-year Changes: No impact. regulations and authorization to take • Indicium Creation Record (ICR) RIN 0648–BJ24 marine mammals. Take would occur by File: No impact. Level B harassment, Level A harassment Takes of Marine Mammals Incidental to • Price Change Type/Product Type: and serious injury and/or mortality Specified Activities; Taking Marine incidental to ice roads and ice trails Market Dominant Comments on Mammals Incidental to Ice Roads and Proposed Changes and USPS Responses. construction and maintenance. Please Ice Trails Construction and see Background below for definitions of The Postal Service did not receive any Maintenance Activities on Alaska’s harassment. formal comments on the October 15, North Slope 2020 proposed rule (85 FR 65311). Legal Authority for the Action AGENCY: National Marine Fisheries * * * * * Service (NMFS), National Oceanic and Section 101(a)(5)(A) of the MMPA (16 U.S.C. 1371(a)(5)(A)) directs the List of Subjects in 39 CFR Part 111 Atmospheric Administration (NOAA), Commerce. Secretary of Commerce to allow, upon request, the incidental, but not Administrative practice and ACTION: Final rule; notification of intentional taking of small numbers of issuance of Letters of Authorization. procedure, Postal Service. marine mammals by U.S. citizens who The Postal Service adopts the SUMMARY: Upon application from engage in a specified activity (other than following changes to Mailing Standards Hilcorp Alaska, LLC (Hilcorp) and Eni commercial fishing) within a specified of the United States Postal Service, US Operating Co. Inc. (Eni), NMFS is geographical region for up to 5 years if, Domestic Mail Manual (DMM), issuing regulations under the Marine after notice and public comment, the incorporated by reference in the Code of Mammal Protection Act (MMPA) for the agency makes certain findings and Federal Regulations. See 39 CFR 111.1. taking of small numbers of marine issues regulations that set forth mammals incidental to ice road and ice permissible methods of taking pursuant Accordingly, 39 CFR part 111 is trail construction, maintenance, and to that activity and other means of amended as follows: operation in Alaska’s North Slope, over effecting the ‘‘least practicable adverse impact’’ on the affected species or PART 111—[AMENDED] the course of 5 years (2020–2025). These regulations allow NMFS to issue Letters stocks and their habitat (see the of Authorization (LOA) for the discussion below in the Mitigation ■ 1. The authority citation for 39 CFR incidental take of marine mammals section), as well as monitoring and part 111 continues to read as follows: during the specified construction and reporting requirements. Section Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– maintenance activities carried out 101(a)(5)(A) of the MMPA and the 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, during the rule’s period of effectiveness, implementing regulations at 50 CFR part 401, 403, 404, 414, 416, 3001–3011, 3201– set forth the permissible methods of 216, subpart I provide the legal basis for 3219, 3403–3406, 3621, 3622, 3626, 3632, taking, set forth other means of effecting issuing this rule containing 5-year 3633, and 5001. the least practicable adverse impact on regulations and for any subsequent LOAs. As directed by this legal ■ marine mammal species or stocks and 2. Revise the Mailing Standards of the their habitat, and set forth requirements authority, this rule contains mitigation, United States Postal Service, Domestic pertaining to the monitoring and monitoring, and reporting requirements. Mail Manual (DMM) as follows: reporting of the incidental take. Summary of Major Provisions Within Mailing Standards of the United States DATES: Effective December 22, 2020 the Rule through November 30, 2025. Postal Service, Domestic Mail Manual Following is a summary of the major ADDRESSES: (DMM) To obtain an electronic provisions of this rule regarding Hilcorp copy of the Hilcorp-Eni’s LOA * * * * * and Eni’s construction activities. These application or other referenced measures include: Notice 123 (Price List) documents, visit the internet at: https:// • No initiation of ice road or trail www.fisheries.noaa.gov/permit/ construction if a ringed seal is observed [Revise prices as applicable.] incidental-take-authorizations-under- within approximately 46 meters (m) * * * * * marine-mammal-protection-act. In case (150 feet (ft)) of the action area after of problems accessing these documents, We will publish an appropriate March 1 through May 30 of each year. please call the contact listed below (see • amendment to 39 CFR part 111 to reflect Requiring monitoring of the FOR FURTHER INFORMATION CONTACT). these changes. construction areas to detect the presence FOR FURTHER INFORMATION CONTACT: of marine mammals before beginning Joshua J. Hofer, Shane Guan, Office of Protected construction activities. Attorney, Federal Compliance. Resources, NMFS, (301) 427–8401. Background [FR Doc. 2020–27020 Filed 12–21–20; 8:45 am] SUPPLEMENTARY INFORMATION: The MMPA prohibits the ‘‘take’’ of BILLING CODE 7710–12–P Purpose and Need for Regulatory marine mammals with certain Action exceptions. Sections 101(a)(5)(A) and This final rule establishes a (D) of the MMPA (16 U.S.C. 1361 et framework under the authority of the seq.) direct the Secretary of Commerce MMPA (16 U.S.C. 1361 et seq.) to allow (as delegated to NMFS) to allow, upon

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request, the incidental, but not 2020 through November 30, 2025. Dates and Duration intentional, taking of small numbers of Hilcorp and Eni plan to conduct marine mammals by U.S. citizens who necessary work, including use of heavy Both Hilcorp and Eni generally begin engage in a specified activity (other than machinery on ice, to facilitate access to constructing sea ice roads and ice trails commercial fishing) within a specified North Slope offshore oil and gas as early as possible, usually by late geographical region if certain findings facilities. The action may incidentally December depending on weather. are made and either regulations are expose marine mammals occurring in Maintenance and use of the ice roads issued or, if the taking is limited to the vicinity to elevated levels of sound, and trails continue generally through harassment, a notice of a proposed human presence on ice habitat, and mid-May when the ice becomes too incidental take authorization (ITA) may interactions with heavy machinery, unstable to access. Depending on the be provided to the public for review. thereby resulting in incidental take, by weather, from the initial surveying until Authorization for incidental takings Level A and Level B harassment and the ice is thick enough to allow travel shall be granted if NMFS finds that the serious injury or mortality. Since by wheeled vehicles, ice road taking will have a negligible impact on Hilcorp and Eni’s ice roads and trails construction takes about six weeks. the species or stock(s) and will not have construction and maintenance activities Specific Geographic Region an unmitigable adverse impact on the have the potential to cause serious availability of the species or stock(s) for injury or mortality to a few ringed seals, Northstar, an artificial gravel island, is taking for subsistence uses (where an LOA is appropriate. On January 17, located in State of Alaska coastal waters relevant). Further, NMFS must prescribe 2020, NMFS published a proposed rule about 9.7 kilometers (km) (6 miles (mi)) the permissible methods of taking and (85 FR 2988) and proposed regulations offshore from Point Storkersen in the other ‘‘means of effecting the least to govern takes of marine mammals Beaufort Sea (Figure 1). Water depth at practicable adverse impact’’ on the incidental to Hilcorp and Eni’s ice roads the island is about 12 m (39 ft). This affected species or stocks and their and trails construction and maintenance region is covered by landfast ice in habitat, paying particular attention to activities, and requested comments on winter and with water depths greater rookeries, mating grounds, and areas of the proposed regulations. than 3 m (10 ft). similar significance, and on the 2 Description of Activity The 0.05 square kilometer (km ) (11- availability of such species or stocks for acre) SID is also an artificial, gravel taking for certain subsistence uses Overview island constructed in shallow (1.8–2.4 (referred to in shorthand as m, 6–8 ft), State of Alaska coastal waters ‘‘mitigation’’); and requirements Hilcorp and Eni conduct oil and gas approximately 4.8 km (3 mi) north of pertaining to the mitigation, monitoring operations at Northstar Production Oliktok Point and just south of the Spy and reporting of such takings are set Facility (Northstar) and Spy Island Island barrier island (Figure 2). While forth. Drillsite (SID), respectively, in coastal SID is situated in water depths The definitions of all applicable Beaufort Sea, Alaska. During the ice- considered unsuitable for ringed seals, MMPA statutory terms cited above are covered season, Hilcorp constructs each year a crack or lead has developed included in the relevant sections below. annual ice roads and trails to connect and allow access between West Dock in the road between OPP and SID. Summary of Request and Northstar. Similarly, Eni builds and The ODS consists of a 0.024 km2 (6- NMFS received a joint application utilizes an ice road connecting the acre) gravel drillsite approximately 8 km from Hilcorp and Eni requesting Oliktok Production Pad (OPP) and SID. (5 mi) offshore in 1.4 m (4.5 ft) of water authorization for take of marine Eni also builds an annual ice road from (Figures 3 and 4). The site is connected mammals incidental to construction shore to the Oooguruk Drill Site (ODS) to an onshore facility by a flowline activities related to ice roads and ice (Figures 1–4). This regulation and the system consisting of a 9.2 km (5.7 mi) trails in the North Slope, Alaska. The implementing LOAs authorize takes of subsea buried flowline bundle which application was determined to be marine mammals incidental to Hilcorp transitions onshore to a 3.7 km (2.3 mi) adequate and complete on May 31, and Eni’s ice roads and ice trails traditional North Slope aboveground 2019. The requested regulations would construction during the ice-covered flowline support system. be valid for 5 years, from December 22, season on Alaska’s North Slope. BILLING CODE 3510–22–P

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BILLING CODE 3510–22–C materials used to bridge sections of Hilcorp usually builds the following Detailed Description of Specific Activity hazardous ice, are clearly marked or unimproved ice trails to Northstar: mapped using Global Positioning • Along the pipeline corridor from Hilcorp: Northstar to West Dock System (GPS) coordinates of the the valve pad near the Dew Line site to Ice Road Construction, Use, and locations. Northstar (9.5 km, 5.93 mi), Maintenance The following steps are used to build • From West Dock to the pipeline shore crossing (grounded ice along the Each year during the ice-covered the Northstar ice road: • coastline (7.8 km, 4.82 mi), and season an approximately 11.7 km (7.3 Clear snow using lighter-weight • Two unimproved ice road paths mi) long ice road is constructed between tracked vehicles; • from the hovercraft tent at Dockhead 2. Northstar and the Prudhoe Bay facilities Grade or drag the ice to smooth the at West Dock to transport personnel, surface, incorporating rubble ice into One would go under the West Dock equipment, materials, and supplies the road or moving it outside of the causeway bridge to Dockhead 3 (1.4 km, (Figure 1). Ice roads allow standard expected road surface; 0.86 mi) and the other would go around • vehicles such as pick-up trucks, SUVs, Drill holes through floating ice West Dock and intersect the main ice buses and other trucks to be used to along the planned ice road route using road north of the Seawater Treatment transport personnel and equipment to rolligons equipped with ice augers and Plant (4.6 km, 2.85 mi). and from the island during the ice- pumps; In addition to these trails, Hilcorp • covered period. Pump seawater from drilled holes may need to construct several shorter In some years depending on over floating ice; and length trails into undisturbed areas to operational needs and weather • Flood the ice road. Flooding work around unstable and unsafe areas conditions, Hilcorp may elect to not techniques are dependent on the of ice as the season progresses. Due to build the main improved ice road. In conditions of the sea ice (i.e., grounded safety considerations these work-around this case, a primary ice trail that can vs. floating). or detour trails may need to be support only tracked, lighter-weight Grounded ice requires minimal constructed after March 1st. They are vehicles would be built in the location freshwater flooding to either cap or constructed similarly to the planned ice of the improved ice road shown on repair cracks. Floating ice requires trails and are not flooded or capped Figure 1. However, to cover all flooding with seawater until a desired with seawater or freshwater. Typically, scenarios, Hilcorp assumes that an ice thickness is achieved. Thickness of these detours deviate approximately 23 road would be built in each year for the floating ice would be determined by the to 46 m (75 to 150 ft) from the original next 5 years. required strength and integrity of the road or trail to allow crews to safely go In water deeper than 3 m (10 ft), the ice. After achieving desired thickness, around soft spots or cracks. ice must be approximately 2.4 m (8 ft) floating ice areas may then be flooded Eni: Oliktok Production Pad to SID thick to support construction with fresh water to either cap or repair equipment. Ice road construction cracks. This technique minimizes the Ice Road Construction, Use, and activities occurs 24 hours a day, 7 days amount of freshwater used to obtain the Maintenance a week during the construction phase desired thickness of the ice road. Each year Eni builds a single ice road and are only halted in unsafe conditions Hilcorp would use permitted freshwater and three ice pads. The ice road extends such as high winds or extremely low sources if fresh water is needed to 6.8 km (4.2 mi) offshore from OPP to temperatures. The ice roads are construct the Northstar ice roads. Water SID (Figure 2). This ice road has both typically constructed by specially- would be transported by truck from supported on water (floating) and designed pumps with ice augers. permitted freshwater sources via grounded ice sections; the first 244 m Seawater for creating the offshore ice existing roads. (800 ft) of the road from shore is road is obtained by drilling holes grounded ice (i.e., frozen to the bottom). Ice Trails through the existing sea ice using augers In addition, Eni typically also builds and pumping salt water to flood the ice Ice trails are unimproved access two floating ice pad parking areas at surface. The rolligons (vehicles with corridors used by Tuckers (a type of SID: A 152 m by 6 m (500 ft by 200 ft) large low-pressure tires) move along the tracked vehicle that moves on snow), area located on the southeast side of road alignment while flooding the PistenBullys® (a type of tracked vehicle SID, and a 91 m by 46 m (300 ft by 150 surface. Water trucks are used to spray that moves on snow), snow machines, or ft) area on the northeast side, and one a freshwater cap over the thickened sea similar tracked equipment. Seawater grounded ice pad at the Oliktok Point ice to provide durability. flooding of the entire trail and end of the ice road. Following construction, ice road freshwater caps are not used. However, Initial construction of the sea ice road surfaces are maintained using graders small rough areas of a trail may require begins with surveying and staking the with snow wings and blowers, or front- minimal seawater flooding to allow route as soon as the ice is thick enough end loaders with snow blower tracked vehicles, rolligons, and the to support snow machines. The floating attachments. Snow can also be cleared hovercraft (if needed) to travel along the sections of the road are constructed by personnel with snow blowers. When corridor. using the free flood method; low snow blowing, wind direction is used to To construct the trail, snow machines pressure pumps flood the ice surface assist in dispersing the blown snow over and light-weight tracked vehicles are with seawater. A 7.6 centimeters (cm) (3 a large area so that large berms or piles used to initially mark the corridor as inches (in.)) layer of water is applied, are not created. Delineators may be used soon as it is determined to be safe for some of which may move to lower parts to mark the roadway in 15 m (50 ft) access. Sea ice in the unimproved roads of the roadway. After the water has increments down the centerline of the would be allowed to thicken through frozen, the next flood can be applied. road, and at no more than 0.4 km (1⁄4 mi) natural freeze up as the ice, and snow Small rolligon vehicles with augers increments on both sides of the ice road is packed down by larger tracked and pumps are used for augering and to delineate the path of vehicle travel vehicles. Generally, snow removal or flooding. Hand augers can be used to and areas to be maintained. Corners of large surface modifications are not check the ice thickness. Ice needs to be rig mats, steel plates, and other required for ice trails. 41 to 51 cm (16 to 20 in.) thick to

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support these vehicles. Rolligon tires early road completion is required or Marine Mammal Commission distribute the load over a larger tire when extra heavy loads, such as a (Commission), ECO49 Consulting, LLC print. Flooding operations occur 24 drilling rig is expected. Either ice road (ECO49) on behalf of Hilcorp and Eni, hours a day, 7 days a week during this is up to approximately 10.7 m (50 ft) and five private citizens. The comments phase. Once the ice is about 183 cm (72 wide with a similar width shoulder area and our responses are provided here, in.) thick and determined to be able to on each side. The shoulders of the road and the comments have been posted support full loads, vehicles such as are used when traffic must periodically online at: https:// passenger trucks, vacuum trucks, drill detour around equipment or in areas www.fisheries.noaa.gov/permit/ trucks and other tractor plus trailer where ice road maintenance is incidental-take-authorizations-under- loads can use the ice road. Up until that occurring. In addition, a grounded ice marine-mammal-protection-act. Please time, only rolligon vehicles and tracked pad staging area is constructed on the see the comment letters for the full vehicles are used on the road. The southwest edge of the ODS (see Figures rationales behind the recommendations maintained ice road width (including 3 and 4). The dimensions of the staging we respond to below. As a result of the shoulder areas) is 49 m (160 ft). area are approximately 180 by 140 m these comments, NMFS revised the Rig mats are used to bridge small (600 by 450 ft). buffer zones for avoidance of seals and leads (fractures within large expanse of The ODS is located in 1.2 to 1.8 m (4 seal structures and added one additional ice) and wet cracks during construction to 6 ft) of water, and the area from the monitoring and reporting measure in the and maintenance. During maintenance site to the shore generally becomes final rule. activities, fresh water is used for road grounded landfast ice in winter. The Comment 1: The Commission surfacing and repair. Once fully flooded typical and alternate ice road routes recommends that NMFS require Hilcorp and open to traffic, snow loads on the shown in Figures 3 and 4 would be and Eni to (1) meet with ice seal ice road must be managed. Snow on the located in grounded rather than floating subsistence hunters in Nuiqsut and ice road is cleared frequently and the ice. There is one small area near the other North Slope communities and width of the ice road (including the Colville River that has an open lead for with members of the Ice Seal Committee shoulder areas) is maintained at 49 m a short duration in December but freezes to discuss their proposed construction, (160 ft). At the end of the ice road solid within a few weeks. The road is maintenance, and operation of ice roads season, as temperatures and sun clearly marked with delineators and and ice trails and its BMPs, and (2) exposure increase, snow may be spread monitored routinely by Alaska Clean revise its mitigation and monitoring over the road surface to insulate and Seas and industry environmental measures as necessary to minimize shade the ice surface, helping to coordinators. Ice bridges or rig mats are disturbance of seals and subsistence preserve ice road integrity. not required for construction or hunting activities, based on input maintenance of the ice road or ice pad received. Ice Trails staging area. Response: NMFS does not agree with Following the same general Initial construction of the sea ice road the Commission’s specific construction methods used at Northstar, begins with surveying and staking the recommendations. Both Hilcorp and Eni Eni plans to build an unimproved ice route as soon as the ice is thick enough have developed Plans of Cooperation trail just west of and parallel to the sea to support snow machines. Low (POCs) to ensure that no unmitigable ice road corridor near SID. The ice trail pressure pumps are used to flood the ice adverse impact would occur to is typically approximately 15–30 m (50– surface with seawater. Small tractor subsistence uses of marine mammals 100 ft) west of the western edge of the vehicles with augers and pumps are from their planned ice roads and ice ice road shoulder and is used when the used for augering and flooding. An trails construction and maintenance activities on the North Slope. As stated ice road is being constructed. Once the initial layer of water is applied, some of in the Federal Register notice for the ice road is open to regular traffic, the ice which may move to lower parts of the proposed rule (85 FR 2988; January 17, trail is not used. After March 1st, due to roadway. After the water has frozen, the 2020), both companies have been safety considerations, Eni may also need next flood can be applied. Flooding engaging the communities of Utqiagvik to use several shorter length trails in operations occur 24 hours a day, 7 days and Nuiqsut, as well as members of the undisturbed areas to work around a week during this phase. Depending on Ice Seal Committee and the Alaska unstable and unsafe areas of ice as the weather and sea ice conditions, Eskimo Whaling Commission (AEWC) season progresses. As described above, construction of the ice road typically to share information about planned these work-around or detour trails allow begins in early December and is exploration/development activities and PistenBullys® and other tracked complete by February 1st. The ODS operations do not require to maintain dialogue about measures to vehicles to safely go around soft spots minimize potential impacts on or cracks. offshore ice trails. However, a coastal trail in very shallow water right off of subsistence harvest. For the ice roads Eni: Oooguruk Ice Road the beach is occasionally needed and ice trails construction and maintenance activities, Hilcorp and Eni Ice Road Construction, Use, and between Oliktok and the ODS ice road developed further mitigation and Maintenance to demobilize equipment after tundra travel has been closed. monitoring measures to minimize the A single ice road and staging area ice Mitigation, monitoring, and reporting potential impacts to subsistence uses of pad are required each year to operate measures are described in detail later in marine mammals in the area based on the ODS. As shown in Figure 3, the this document (please see Mitigation inputs from subsistence users in the typical or proposed ice road extends 8.9 and Monitoring and Reporting). area. These measures also include km (5.5 mi) offshore to the ODS. An signing a Conflict Avoidance Agreement alternative ice road as shown on Figure Comments and Responses (CAA) with the AEWC and Whaling 4 would be located in shallower water NMFS published a proposed rule in Captains’ Associations of nearby North and, therefore, can be grounded and the Federal Register on January 17, Slope communities. The CAA describes used earlier in the season. The 2020 (85 FR 2988). During the 30-day measures to minimize any adverse alternative route extends 11.2 km (7 mi) public comment period on the proposed effects on the availability of bowhead offshore and is used in years when an rule, NMFS received comments from the whales for subsistence use. To date, the

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Native community has not expressed Commission (84 FR 70274; December sea ice roads/trails within the exposure concerns over interactions with seals, 20, 2019) included bearded seals to be areas. These insights will be particularly during the ice-covered precautionary and considering the other incorporated into Hilcorp and Eni’s seasons. Hilcorp and Eni state that they activities (such as pile driving) that are training materials provided to personnel will continue to address questions and part of the Liberty Project in addition to responsible for monitoring for ringed concerns from community members, ice roads. seals along sea ice roads/trails. NMFS and continue to provide them with Likewise, spotted seals are not known also requires Hilcorp and Eni to include contact information of project to remain in the Beaufort Sea during the the methods used for detection of seals management to which they can direct late fall and winter (BOEM, 2018). and seal structures with an assessment concerns related to these companies’ Given their seasonal occurrence and of their effectiveness in the final reports. specific activities. Therefore, the distribution (they are absent from the NMFS incorporated these Commission’s recommendations are not Beaufort Sea in winter) and low recommendations into the final rule. necessary. numbers in the nearshore waters of the Comment 6: The Commission Comment 2: The Commission central Alaskan Beaufort Sea during recommends that NMFS initiate a peer recommends that NMFS revise the other seasons, no spotted seals are review of the proposed mitigation and numbers of Level B harassment takes for expected in the Action Areas in late monitoring plan (as described at 50 CFR ringed seals using inputs for the winter and spring during ice road/trail 216.108(d)). The Commission states that estimated length of road or trail to be activities. authorization to take ringed seals constructed or maintained each day and Therefore, considering the fact that incidental to construction and the number of days each season that bearded and spotted seals are extremely maintenance of ice roads and ice trails construction, maintenance, and unlikely to occur in the nearshore has been included in previous operation of ice roads and ice trails are environment during winter months, and rulemakings that were peer-reviewed, expected to occur. the small zone of disturbance that is most recently in December 2019 (84 FR Response: NMFS does not adopt the only related to ice road construction and 70274). Commission’s recommendation. We maintenance, including takes of bearded Response: NMFS does not agree that believe that the method used here is the and spotted seals is not appropriate. this is necessary and does not adopt the best way to calculate take estimates for Comment 4: The Commission recommendation. As the Commission these activities. In this case, the take recommends that NMFS revise the stated in its comment, marine mammal number is based on the density buffer zones used in section monitoring plans are required to be multiplied by the action area. Ice road 217.154(c)(3), (5), and (7)(i), and section reviewed by an independent peer- construction, operations and 217.155(c) of the proposed rule to review panel if the activities occur in maintenance does not occur reference avoidance of seals within 50 Arctic waters and may affect the continuously every day throughout the m and avoidance of seal structures availability of marine mammal species ice road season. While the ice road within 150 m, for consistency with or stocks for subsistence use. As season is approximately December other recent rulemakings (84 FR 70274; discussed in detail in the proposed rule through May, ice road construction, December 20, 2019) regarding avoidance (85 FR 2988; January 17, 2020), Hilcorp operations and maintenance only occur of seals and seal structures during and Eni’s proposed ice roads and ice in a small subsection for a given day. In construction, maintenance, and trails construction projects would occur addition, construction, operation and operation of ice roads and trails on the far away from subsistence activities, and maintenance activity does not occur North Slope. Hilcorp and Eni also would be conducted during the time each day, and the number of days recommend using the whole metric few subsistence activities occur. In required for construction, maintenance values for mitigation and monitoring winter and spring, small numbers of or operations cannot be predicted given distances as stated in the LOA ringed seals may be disturbed and the variability in weather and ice application. possibly displaced from the immediate conditions. For this reason, it is not Response: NMFS concurs with the locations of the ice roads and trails. Seal appropriate to use the entire six months recommendations and has made the hunters would likely avoid the areas as the total duration. Also, it is not corrections in the final rule and the near SID, Northstar and ODS in favor of possible to predict with certainty the LOAs issued to Hilcorp and Eni. less developed, more productive areas amount of time each company would Comment 5: The Commission closer to the main sealing areas near the use the ice roads each week or month recommends that NMFS require Hilcorp Colville River delta. Therefore, given the seasonal variability. The take and Eni to (1) consult with local hunters construction and maintenance of the ice calculation considers the fact that in regarding the best techniques for roads and trails is unlikely to impact over >10 years of ice road activity (i.e., detecting seals and seal structures with winter subsistence hunting of ringed at Northstar), there have only been two a minimum of disturbance, (2) involve seals. The example that the Commission seals reported in what is defined as the local hunters in the training of observers provided concerning peer-review of a ‘‘exposure area.’’ The take calculations for ice road activities, and (3) include in marine mammal monitoring plan consider the total exposure area (in the final reports the methods used for associated with ice roads and ice trails square km) multiplied by seal density. detection of seals and seal structures construction and maintenance is Comment 3: The Commission with an assessment of their Hilcorp’s Liberty Drilling and recommends that NMFS include Level B effectiveness. Production Island construction, but that harassment takes of bearded and spotted Response: NMFS concurs with this project has potential effects to seals in the final rule using the same recommendation and has adopted it. subsistence use of marine mammals take estimation method. NMFS worked with Hilcorp and Eni on from pile driving and artificial island Response: NMFS does not agree with these issues and will require Hilcorp construction activities during open- the recommendation and does not adopt and Eni to engage local hunters in water season. NMFS is not aware of it. Bearded seals prefer areas of moving Nuiqsut, Utqiagvik and Kaktovik monitoring plans for ice road/trail ice and open water with depths up to through the Ice Seal Committee point of construction and maintenance 200 m (656 ft) (Burns and Harbo 1972). contact to gather recommendations on undergoing peer review because these The Liberty rule referenced by the methods for ringed seal detection along activities are not typically considered as

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meeting the ‘‘may affect’’ requirement therefore, the take estimate remains Comment 12: One private citizen pertaining to subsistence uses of marine unchanged. states their belief that Hilcorp and Eni mammal species and stocks. Comment 9: ECO49 suggests adding a would not be truthful in presenting the Comment 7: ECO49, on behalf of note after the last bullet in the data that indicates ringed seals are Hilcorp and Eni, notes that takes of subsection Monitoring Measures After experiencing serious injury/death ringed seals by mortality/serious injury March 1st, to read ‘‘During this because of the ice road/trial or Level A harassment were reduced monitoring period, maintenance work construction and use. The individual from the LOA application by NMFS will proceed cautiously as to minimize states that if Hilcorp and Eni find data based on analysis using historical data. impacts or disturbance to area.’’ that might prevent them from building ECO49 states that they understand Response: NMFS understands that these routes in the future they could be NMFS’ approach in take calculation, but there will be limited activities after tempted to stretch or even hide the truth request to closely work with NMFS if March 1, and that additional monitoring for the benefit of their company’s Level A harassment or mortality/serious measures are being added to minimize interests. The individual suggests that a injury approaches the level authorized, impacts or disturbance to ringed seal third-party non-profit entity work with to review the manner of take and pupping activities after March 1. the companies to help monitor the seals number of takes authorized. However, the language ECO49 suggested and report the findings. Response: As discussed in detail in is not part of the specific monitoring Response: NMFS has no basis for the proposed rule (85 FR 2988; January measure, therefore NMFS does not concern that Hilcorp and Eni would 17, 2020), the take request of a total of consider it appropriate to include that conceal serious injury/mortality 30 ringed seal mortality/serious injury in that subsection. incidents, if such incidents occur. The takes presented in the LOA application Comment 10: ECO49 notes that the LOAs issued to Hilcorp and Eni cannot be adequately justified based on proposed rule includes language authorize limited take by serious injury historical data and comparable activities describing a process for modifying and mortality, therefore, it is not to the where takes were authorized (e.g., 2019 mitigation or monitoring measures companies’ interests to falsify the Hilcorp Liberty rule for ice road and ice should it be warranted. ECO49 states monitoring report if such take occurs. In trail construction on the North Slope). that it understands this language is non- addition, falsifying a marine mammal The proposed Level A harassment and binding and requests that NMFS report would lead to revocation of the LOA(s) issued to Hilcorp and/or Eni, mortality/serious injury of a total of 12 coordinate closely with Hilcorp and Eni and would affect any future application seals were estimated based on the level should any modifications to mitigation they might submit to obtain marine of activities by Hilcorp and Eni over the measures be needed in the future. mammal ITA, in addition to subjecting next 5 years. Based on the analysis, Response: NMFS will coordinate them to potential legal actions. NMFS does not believe Hilcorp or Eni closely with Hilcorp and Eni and their Therefore, NMFS does not believe would exceed the Level A harassment contractors should any modifications to Hilcorp or Eni would intentionally and/or mortality/serious injury mitigation measures be needed in the misrepresent the actual take numbers in authorized under the rulemaking, with future. their marine mammal monitoring implementation of prescribed mitigation Comment 11: Four private citizens reports, including reporting of serious and monitoring measures. However, in recommend prohibiting Hilcorp and Eni injury and/or mortality takes. the unlikely event such situation occurs, from constructing the ice roads to better NMFS will work with Hilcorp and Eni protect the environment and sensitive Changes From the Proposed to Final closely to review the manner of take and wildlife. Another anonymous individual Rule number of takes authorized, and to states that it is not in the best interest There is no change in the Hilcorp and reinitiate section 7 consultation under of Alaska and the entire U.S. population Eni’s proposed ice roads and ice trails the Endangered Species Act (ESA). to continue letting Hilcorp and Eni take construction activities from the Comment 8: ECO49 points out that animals during their proposed ice-road proposed rule (85 FR 2988; January 17, language in the proposed rule (85 FR construction. 2020). NMFS revised the buffers in 2988; January 17, 2020;) should be Response: NMFS’ authority and these section 217.154(c)(3), (5), (7), and (7)(i), revised to make clear that an additional final regulations allow for issuance of a and section 217.155(b)(1) and (1)(ii) and buffer area was added to the road/trail LOA to authorize takes of marine (c)(1) and (2) to reference avoidance of width for SID so the total width is 420 mammals incidental to ice road seals within 50 m and avoidance of seal m, not 340 m as indicated. ECO49 construction and maintenance activities structures within 150 m. One additional proposes the following language to by Hilcorp and Eni. NMFS has no monitoring and reporting measure was clarify the distance used to calculate authority over whether the ice road added to the final rule based on potential seal exposures at SID: ‘‘The construction project is permitted. The comments received during the public total width of the ice road and trail at MMPA directs the Secretary of comment period. This measure requires SID accounts for the ice trail being Commerce (as delegated to NMFS) to that Hilcorp and Eni (1) engage local constructed approximately 15 to 30 m allow, upon request, the incidental, but hunters through the Ice Seal Committee west of the western edge of the ice road not intentional, taking of small numbers point of contact to gather shoulder. Therefore, a total width of 420 of marine mammals by U.S. citizens recommendations on methods for ringed m has been used to calculate potential who engage in a specified activity seal detection along sea ice roads/trails seal exposures at SID whereas, the ice within a specified geographical region. within the exposure areas, (2) road/trail total width at Northstar and Authorization for incidental takings incorporate these recommendations into ODS is 340 m.’’ shall be granted if NMFS finds that the Hilcorp and Eni’s training materials Response: NMFS revised the taking will have a negligible impact on provided to personnel responsible for description in the Take Estimates the species or stock(s) and will not have monitoring for ringed seals along sea ice section below. While the language in the an unmitigable adverse impact on the roads/trails, and (3) include the proposed rule contained an error, take availability of the species or stock(s) for methods used for detection of seals and calculation of ringed seals at SID used taking for subsistence uses (where seal structures with an assessment of the correct information (420 m), relevant). their effectiveness in the final reports.

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Description of Marine Mammals in the Table 1 lists all species with expected Marine mammal abundance estimates Area of Specified Activities potential for occurrence in the Beaufort presented in this document represent Sea and summarizes information related the total number of individuals that Sections 3 and 4 of the application to the population or stock, including make up a given stock or the total summarize available information regulatory status under the MMPA and number estimated within a particular regarding status and trends, distribution ESA and potential biological removal study or survey area. NMFS’ stock and habitat preferences, and behavior (PBR), where known. For taxonomy, we abundance estimates for most species and life history, of the potentially follow Committee on Taxonomy (2020). represent the total estimate of affected species. Additional information PBR is defined by the MMPA as the individuals within the geographic area, maximum number of animals, not regarding population trends and threats if known, that comprises that stock. For including natural mortalities, that may may be found in NMFS’ Stock some species, this geographic area may be removed from a marine mammal Assessment Reports (SARs; https:// extend beyond U.S. waters. All managed www.fisheries.noaa.gov/national/ stock while allowing that stock to reach or maintain its Optimum Sustainable stocks in this region are assessed in marine-mammal-protection/marine- NMFS’ U.S. 2019 SARs (Carretta et al., mammal-stock-assessments), and more Population (OPS) (as described in NMFS’s SARs). While no mortality is 2020; Muto et al., 2020). All values general information about these species presented in Table 1 are the most recent (e.g., physical and behavioral anticipated, PBR and annual serious injury and mortality from anthropogenic available at the time of publication and descriptions) may be found on NMFS’ sources are included here as gross are available in the 2019 SARs (Carretta website (https:// indicators of the status of the species et al., 2020; Muto et al., 2020). www.fisheries.noaa.gov/find-species). and other threats. TABLE 1—MARINE MAMMALS WITH POTENTIAL PRESENCE WITHIN THE PROJECT AREA

ESA/ MMPA Stock abundance (CV, Nmin, Annual Common name Scientific name Stock status; most recent abundance PBR M/SI 3 Strategic survey) 2 (Y/N) 1

Order Cetartiodactyla—Cetacea—Superfamily Mysticeti (baleen whales)

Family Eschrichtiidae: Gray whale ...... Eschrichtius robustus ...... Eastern North Pacific ...... -; N 26,960 (0.05, 25,849) ...... 801 139 Family Balaenidae: Bowhead whale ...... Balaena mysticetus ...... Western Arctic ...... E/D; Y 16,820 (0.052, 16,100) ...... 161 46 Family Delphinidae: Beluga whale ...... Delphinapterus leucas ...... Beaufort Sea ...... -; N 39,258 (0.229, N/A) ...... Undet 139

Family Phocidae (earless seals)

Ringed seal 4 ...... Phoca hispida ...... Alaska ...... T/D; Y 171,418 (NA, 170,000) ...... 4,755 700 Spotted seal ...... Phoca largha ...... Alaska ...... -; N 461,625 (NA, 423,237) ...... 12,697 329 Bearded seal 5 ...... Erignathus barbatus ...... Alaska ...... T/D; Y 301,836 (NA, 273,676) ...... Undet 557 Ribbon seal ...... Histriophoca fasciata ...... Alaska ...... -; N 184,695 (NA, 163,086) ...... 9,785 3.9 1 ESA status: Endangered (E), Threatened (T)/MMPA status: Depleted (D). A dash (-) indicates that the species is not listed under the ESA or designated as de- pleted under the MMPA. Under the MMPA, a strategic stock is one for which the level of direct human-caused mortality exceeds PBR or which is determined to be declining and likely to be listed under the ESA within the foreseeable future. Any species or stock listed under the ESA is automatically designated under the MMPA as depleted and as a strategic stock. 2 NMFS marine mammal stock assessment reports online at: https://www.fisheries.noaa.gov/national/marine-mammal-protection/marine-mammal-stock-assessment- reports-region#reports. CV is coefficient of variation; Nmin is the minimum estimate of stock abundance. 3 These values, found in NMFS’ SARs, represent annual levels of human-caused mortality plus serious injury from all sources combined (e.g., commercial fisheries, ship strike). Annual mortality/serious injury (M/SI) often cannot be determined precisely and is in some cases presented as a minimum value or range. A CV associ- ated with estimated mortality due to commercial fisheries is presented in some cases. 4 Ringed seal estimate is based on surveys conducted in the Alaska Chukchi and Beaufort seas in the late 1990s and 2000, and in the U.S. portion of the Bering Sea in 2012. This is the best available information for use here. 5 Bearded seal estimate is based on surveys conducted in the U.S. portion of the Bering Sea in 2012. This is the best available information for use here.

All species that could potentially of ice seals only occur in the project road/trail construction and maintenance occur in the proposed survey areas are area during the open-water season. is extremely unlikely. As a result, included in Table 1. As described Ribbon seal mostly occurs in the cetacean species will not be discussed below, only the ringed seal temporally Chukchi Sea and western Beaufort Sea, further in this document. and spatially co-occurs with the activity and is considered as extra-limital in the Ringed seal is the only species that to the degree that take is reasonably project area. Therefore, the potential for would be reasonably likely to be likely to occur. The temporal and/or encounters with bearded, spotted, and affected by the ice road and ice trail spatial occurrence of the rest of the ribbon seals during ice road/trail construction and maintenance activity. species listed in Table 1 is such that construction and maintenance is A detailed description of this species in take is not expected to occur, and they extremely unlikely. As a result, these ice the action area is provided in the are not discussed further beyond the seal species will not be discussed proposed rule (85 FR 2988; January 17, explanation provided here. further in this document. 2020). While ringed, spotted, and bearded None of the cetacean species listed seals are present in the Beaufort Sea above is expected to enter the ice- Potential Effects of Specified Activities during the open-water season, only covered action areas during the winter on Marine Mammals and Their Habitat ringed seals are likely to be in the months when ice road activities would This section includes a summary and nearshore environment during the ice- be occurring. Therefore, the potential for discussion of the ways that components covered months. The other two species encounters with cetaceans during ice of the specified activity may impact

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marine mammals and their habitat. The nursing, breeding, feeding, or sheltering ice year round, maintaining breathing Estimated Take section later in this (Level B harassment). holes and excavating subnivean lairs in document includes a quantitative Authorized takes would primarily be the landfast ice during the ice-covered analysis of the number of individuals by Level B harassment, as exposure of season. During this ice-covered season, that are expected to be taken by this ringed seals by construction activities ringed seals’ home ranges are generally activity. The Negligible Impact Analysis and noise has the potential to result in less than 5 km2 (2 mi2) in area (Frost et and Determination section considers the disruption of behavioral patterns for al. 2002, Kelly et al. 2005). While older content of this section, the Estimated individual animals. There could also be datasets from the 1970s and 80s provide Take section, and the Mitigation section, potential for serious injury/mortality if important context for understanding to draw conclusions regarding the likely an animal is crushed by a construction seal presence in the region, only more impacts of these activities on the machinery or vehicle while in its recent surveys beginning in 1997 have reproductive success or survivorship of subnivean lair. Auditory injury is been used to calculate density for this individuals and how those impacts on unlikely to occur because the overall rule as described in the following noise levels generated from the individuals are likely to impact marine sections. mammal species or stocks. construction activities are low. The The Hilcorp and Eni’s sea ice roads mitigation and monitoring measures are Winter Densities and ice trails construction and expected to minimize the severity of Ringed seals overwinter in the maintenance activities on the North such taking to the extent practicable. landfast ice in and around the project Slope could adversely affect ringed seals Below we describe how the take is area. Relatively few data are available by exposing them to construction noise estimated. Generally speaking, we estimate take for ringed seal density in the southern and presence of human activities, and by considering: (1) Marine mammals Beaufort Sea during the winter months, potential serious injury or mortality in (ringed seals) likely to be exposed to but several studies on ringed seal winter the project area. visual and acoustic disturbances from ecology were undertaken during the A detailed description of the impacts ice roads and ice trails construction; (2) 1980s (Kelly et al. 1986, Frost and Burns on marine mammals and their habitat is the density or occurrence of marine 1989). These reports, in addition to data provided in the Federal Register notice mammals within the areas likely to be associated with the Northstar (85 FR 2988; January 17, 2020) for the disturbed; and, (3) the number of days development and the abandoned Seal proposed rule, and is not repeated here. of activities. We note that while these Island (Williams et al. 2001, Frost et al. Estimated Take basic factors can contribute to a basic 2002) provide information on both seal calculation to provide an initial This section provides an estimate of ice structure use (where ice structures prediction of takes, additional include both breathing holes and the number of incidental takes that may information that can qualitatively be authorized through this rulemaking, subnivean lairs) and the density of ice inform take estimates is also sometimes structures (Table 2). which will inform both NMFS’ available (e.g., previous monitoring consideration of ‘‘small numbers’’ and results or average group size). Below, we Both male and female ringed seals the negligible impact determination. describe the factors considered here in maintain a number of breathing holes Harassment is one of the types of take more detail and present the take and haul out in more than one expected to result from these activities. estimate. This section includes an subnivean lair during the ice-covered Except with respect to certain activities overview of estimated ringed seal season. Kelly et al. (1986) found that of not pertinent here, section 3(18) of the density in the area, a description of the their tagged seals, the animals would MMPA defines ‘‘harassment’’ as any act area of potential disturbance, estimates haul out between one and multiple of pursuit, torment, or annoyance, for noise sources (under ice-covered subnivean lairs. The distances between which (i) has the potential to injure a conditions and in air), and a discussion each lair could be as great as 4 km (2.5 marine mammal or marine mammal of the potential for behavioral responses mi) with numerous breathing holes in stock in the wild (Level A harassment); or serious injury or mortality due to ice between (Kelly et al. 1986). While these or (ii) has the potential to disturb a road/trail/pad activities. authors calculated the average number marine mammal or marine mammal of lairs used by an individual seal to be stock in the wild by causing disruption Ringed Seal Densities 2.85 (SD=2.51) per animal, they also of behavioral patterns, including, but Ringed seals are present in the suggest that this is likely to be an not limited to, migration, breathing, nearshore Beaufort Sea waters and sea underestimate.

TABLE 2—SEAL STRUCTURE DENSITY ALONG THE BEAUFORT SEA COAST NEAR THE PROJECT AREA

Sea Year structure Source density/km 2

1982 ...... 3.6 Frost and Burns 1989. 1983 ...... 0.81 Kelly et al. 1986. Dec. 1999 ...... 0.71 Williams et al. 2001. May 2000 ...... 1.2 Williams et al. 2001. Average structure density/km 2 ...... 1.58

In 1982, aerial surveys were were located by searching with a dog of 157 structures were found resulting conducted near Reindeer Island, just along 267 km (166 mi) of seismic and in an average estimate of 0.53/km seal east of the project area (Northstar and control lines as well as 28 km (17 mi) structures (Kelly et al. 1986) or 3.6 SID), where seismic exploration of non-systematic search lines (295 structures/km2 (Frost and Burns 1989). activities were occurring. Seal structures linear km (183 linear mi) total). A total

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In 1983, the vicinity of Reindeer assumed to be an underestimate (Kelly solid during the ice-covered season) Island was surveyed again and the et al. 1986). densities were calculated where water average number of seal structures Average ice structure density/Average depth was >3m deep (Moulton et al. recorded was 0.70/km over number of structures per seal = 2002a, b), Richardson and Williams approximately 81 km (50 mi) of linear Estimated Average Winter Seal Density: 2003). Frost et al. (2002) and Frost et al. survey lines resulting in an average 1.58/2.85 = 0.55 seals/km2. (2004) reported slightly higher densities number of total structures of 0.81/km2. based on surveys conducted during this Spring Densities In 1999, a total of 26 seal structures same time period between 1997 and were located within a 36.5 km2 area In 1997, prior to Northstar 1999. As with all aerial surveys, animal encompassing the Northstar construction, British Petroleum densities are underestimated because Development resulting in an estimated Exploration Alaska (BPXA) conducted animals are missed, or not counted. This 0.71 structures/km2 in December 1999 aerial surveys for seals as part of the is generally because they are not hauled and 1.2 structures/km2 in May 2000 industry monitoring programs for the out where they can be seen or are (Richardson and Williams 2001). Northstar facility. These datasets missed by the observer. Therefore, these To estimate ringed seal density during provide the best available information density estimates represent minimum the winter, an average structure density on spring ringed seal density for the estimates during the time and location was divided by the average number of project area. Information is based on of the surveys. The average uncorrected structures used by seals (Kelly et al. aerial surveys were flown around densities calculated based on these 1986). Thus, for the winter season Northstar and west of Prudhoe Bay separate datasets (1997–1999) are ringed seal density has been estimated during late May and early June (Frost et provided in Table 3. It is acknowledged as the average ice structure density al. 2002, Moulton et al. 2002a, b, that densities of seals near the Eni SID (1.58/km2) divided by the average Richardson and Williams 2003) when Action Area are likely to be lower than number of ice structures used by an the greatest percentage of seals have densities calculated for the purposes of individual seal (2.85, SD = 2.51). This abandoned their lairs and are hauled out estimating take in this analysis, due to results in an estimated density of 0.55 on the ice (Kelly et al. 2010, Kelly et al. much shallower water near the Eni SID ringed seals/km2 (for example, 1.58/2.85 2010). site. However, for consistency and as a = 0.55). However, this density is likely Because densities were consistently precautionary measure, the same to be an overestimate because the very low where water depth was <3m density estimates are used throughout equation denominator of 2.85 is (and these areas are generally frozen this analysis.

TABLE 3—ESTIMATED RINGED SEAL DENSITIES (UNCORRECTED) BASED ON SPRING AERIAL SURVEYS DURING ICE- COVERED CONDITIONS, 1997–2002

Uncorrected seal density Average (no/km2) uncorrected Year ringed seal Moulton et al. Frost et al. density 2002, 2005 * 2002, 2004 (no/km2)

1997 ...... 0.43 0.73 0.58 1998 ...... 0.39 0.64 0.52 1999 ...... 0.63 0.87 0.75 2000 ...... 0.47 ...... 0.47 2001 ...... 0.54 ...... 0.54 2002 ...... 0.83 ...... 0.83

Average density (no/km2) ...... 0.61 * Water depths >10 ft.

For the period 2000, 2001, and 2002, deformation, presence of meltwater, and In summary, for the purposes of (Moulton et al. 2005) reported ringed percent cloud cover had more estimating take associated with ice road/ seal densities (uncorrected) on landfast conspicuous and statistically-significant trail activities, winter and spring ice during Northstar construction were effects on seal sighting rates than did densities are assumed to be 0.55 and calculated as 0.47, 0.54, and 0.83 seals/ any human-related factors. Thus, the 0.61 seals/km2 (respectively) as shown km2. Based on the average density of intra- and inter-annual variability in in Table 4. surveys flown from 1997 to 2002 the survey conditions and ice Take Estimates uncorrected density of ringed seals characteristics is unavoidable and during the spring is expected to be 0.61 identifying trends in seal abundance or Level B Harassment 2 ringed seals/km . estimating density is challenging. As reported in Frost et al. (2002) To estimate exposures of ringed seals habitat-related variables including water TABLE 4—RINGED SEAL DENSITIES to disturbance that may result in a take, depth, location relative to the fast ice the total area of potential disturbance edge, and ice deformation have shown Spring (i.e., exposure area) associated with to result in substantial and consistent Winter average density average construction and maintenance of the effects on the distribution and (seal/km2) density roads/trails/pads is defined as 170 m (seal/km2) abundance of seals. Moulton et al. (approximately 558 ft) on either side of (2003) and Moulton et al. (2005) also 0.55 ...... 0.61 the road/trail/pad centerline; a total reported that environmental factors width of 340 m (approximately 1,115 ft). such as date, water depth, degree of ice

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Again, the total width of the exposure following calculation was used for 30 m west of the western edge of the ice area is 340 m (558 ft). This width is then Northstar ice roads and trails: road shoulder. Therefore, a total width multiplied by the total length of roads/ TAE × D = TES of 420 m has been used to calculate trails likely to be constructed each year TES (winter) + TES (spring) = TEY potential seal exposures at SID as a 2 to calculate the exposure area in km . Where: more conservative approach whereas, Due to the variability in the length of ice TAE = Total Area of Exposure the ice road/trail total width at roads/trails that may be needed from D = Species Density (variable by season) Northstar and ODS is 340 m, as shown year to year, a 10 percent buffer is also TES = Total Estimated Seals Exposed Per in Table 5. added to the total length and is Season Based on the exposure estimates, Eni accounted for in the total area TEY—Total Estimated Seals Exposed Per calculated. The total area of exposure is Year and Hilcorp request takes for Level B then multiplied by the seasonal ringed For example: harassment for the 5-year period as seal density to calculate the total 12.96 km2 (TAE) × 0.55 (winter density per shown in Table 5. Takes are presented estimated ringed seals exposed each km2) = 7.13 seals/winter annually for each company and are season. Since there are two seasons 12.96 km2 (TAE) × 0.61 (spring density per requested for ice road and ice trail during which ringed seals may be km2) = 7.91 seals/spring construction, operation and exposed to ice road activity (winter and 7.13 seals/winter + 7.91 seals/spring = 15.03 maintenance expected to occur between spring), the exposure estimates for seals/year December and May of each year, winter and spring are then added The total width of the ice road and depending on local conditions. Potential together to calculate the total number of trail at SID accounts for the ice trail Level B harassment takes could occur in seals exposed per year. For example, the being constructed approximately 15 to all 5 years.

NMFS does not expect Level A associated with a vibroseis program determined (Richardson and Williams harassment of ringed seal to occur, as outside the barrier islands east of Bullen 2000). noise and visual exposure to Point in the eastern Beaufort Sea While the only recorded mortality of construction activities will not become (MacLean 1998). During a 1999 NMFS a seal occurred in 1998, Eni and Hilcorp injurious as defined for purposes of a workshop to review on-ice monitoring also requested 10 takes for each Level A harassment take under the and research, Dr. Brendan Kelly (then of development over the 5-year period for MMPA. However, it is possible that a the University of Alaska), also indicated potential ringed seal serious injury or seal may be in its lair during ice roads/ that a dead ringed seal pup was found mortality during construction, operation trails construction and thus, it is during his research using trained dogs and maintenance of ice roads and trails. possible for a seal to become crushed by to locate seal structures in the ice. The However, NMFS does not consider construction machinery or vehicle while dead ringed seal pup was located this request to be adequately justified, the road/trail is being erected, resulting approximately 1.5 km (0.9 mi) from the and is concerned that the requested in injury, serious injury, or mortality. A Northstar ice road. No data on the age mortality in this action is much higher detailed discussion of such events is of the pup, date of death, necropsy than other similar actions. provided below. results, or cause of death are available. For instance, in the 2019 Hilcorp Potential Serious Injury or Mortality Therefore, whether ice road Liberty rule for ice road and ice trail construction at Northstar could have construction on the North Slope, there Based on a review of literature and were two lethal takes authorized over contributed to the death of this pup, or monitoring reports from Northstar and the first 5 years (and 8 over the if its death was coincidental to other North Slope projects, there is following 20 years, for 10 total documentation of one seal mortality Northstar activities cannot be mortalities over 25 years). In that action,

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four ice roads, totaling 51.5 km in length located approximately 91 km (about 57 upon the affected species or stocks and would be constructed: In Years 1 mi) southwest from Northstar, 40 km their habitat (50 CFR 216.104(a)(11)). through 3, all four roads would be (about 25 mi) from ODS, and 56 km In evaluating how mitigation may or constructed; in Years 4 and 5, only Road (about 35 mi) from SID. Primary may not be appropriate to ensure the #1 would be constructed (11.3 km in subsistence users in the area between least practicable adverse impact on length). By comparing the two actions, Oliktok Point and West Dock are species or stocks and their habitat, as Hilcorp Northstar and Eni are residents from the village of Nuiqsut. well as subsistence uses where constructing more ice roads/trails than People from Utqiagvik (about 309 and applicable, we carefully consider two Hilcorp is at the Liberty site over a 5- 264 km [192 and 164 mi] west of primary factors: year period. Northstar and SID, respectively) and In terms of the distribution of Kaktovik harvest marine mammals that (1) The manner in which, and the construction activities between the two pass through the area but generally do degree to which, the successful companies, Hilcorp is constructing 1.9 not hunt there. Kaktovik is 196 km (122 implementation of the measure(s) is times as many ice road/trail kilometers mi) east of Northstar and 241 km (150 expected to reduce impacts to marine as Eni is at either SID or ODS. However, mi) east of SID. mammals, marine mammal species or Eni’s construction activities encompass Nuiqsut hunters harvest ringed seals stocks, and their habitat, as well as two separate sites and each have the primarily during open water periods in subsistence uses. This considers the potential to encounter inhabited seal July through August. In summer, boat nature of the potential adverse impact lairs given an assumed equal crews hunt ringed, spotted and bearded being mitigated (likelihood, scope, distribution of species. Based on these seals. The most important seal hunting range). It further considers the factors, NMFS is authorizing three area for Nuiqsut hunters is off the likelihood that the measure will be serious injury/mortalities for ice road/ Colville Delta, as far east as Pingok effective if implemented (probability of trail activities at each of Eni’s sites (Spy Island. The closest edge of the main accomplishing the mitigating result if Island and Oooguruk), and six serious sealing area at Pingok Island, is about 27 implemented as planned), the injury/mortalities at Hilcorp’s Northstar km (17 mi) west of Northstar (SRBA likelihood of effective implementation site, all over 5 years. A summary of 2010, Galginaitis 2014). While less (probability implemented as planned), serious injury/mortality for Hilcorp and frequent than open water hunting, seals and; Eni over the 5-year period is provided are taken by hunters on snow machines (2) The practicability of the measures in Table 6. before break-up. for applicant implementation, which In summary, Hilcorp and Eni’s ice may consider such things as cost, TABLE 6—TOTAL ESTIMATED RINGED roads and ice trails construction projects impact on operations, and, in the case SEAL TAKES ANNUALLY AND OVER would occur far away from subsistence of a military readiness activity, THE 5-YEAR LOA PERIOD activities, and would be conducted personnel safety, practicality of during the time few subsistence implementation, and impact on the Serious injury/ activities occur. In winter and spring, effectiveness of the military readiness mortality for 5 years small numbers of ringed seals may be activity. disturbed and possibly displaced from Eni SID ...... 3 the immediate locations of the ice roads Mitigation for Marine Mammals and Eni ODS ...... 3 and trails shown on Figures 1 through Their Habitat Hilcorp Northstar ...... 6 4. Seal hunters would likely avoid the For Hilcorp and Eni’s ice roads and areas near SID, Northstar and ODS in Total ...... 12 trails construction project, Hilcorp and favor of less developed more productive Eni worked with NMFS and proposed areas closer to the main sealing areas the following mitigation measures to Effects of Specified Activities on near the Colville River delta. Therefore, minimize the potential impacts to Subsistence Uses of Marine Mammals construction and maintenance of the ice marine mammals in the project vicinity. roads and trails is unlikely to impact Subsistence hunting continues to be The primary purposes of these subsistence hunting of ringed seals. an essential aspect of Inupiat Native life, mitigation measures are to minimize especially in rural coastal villages. The Mitigation human-seal interactions and to avoid Inupiat participate in subsistence takes by serious injury/mortality from hunting activities in and around the In order to issue an LOA under the activities, to monitor marine Beaufort Sea. The animals taken for Section 101(a)(5)(A) of the MMPA, mammals within designated zones of subsistence provide a significant portion NMFS must set forth the permissible influence in the project vicinity and, if of the food that will last the community methods of taking pursuant to such seals are within the designated through the year. Marine mammals activity, and other means of effecting shutdown zone after March 1 during the represent on the order of 60–80 percent the least practicable impact on such pupping season, to initiate immediate of the total subsistence harvest. Along species or stock and its habitat, paying pause of all construction activities, with the nourishment necessary for particular attention to rookeries, mating making it very unlikely potential injury survival, the subsistence activities grounds, and areas of similar strengthen bonds within the culture, significance, and on the availability of or serious injury/mortality to seals provide a means for educating the such species or stock for taking for would occur and ensuring that Level B younger generation, provide supplies for certain subsistence uses. NMFS behavioral harassment of seals would be artistic expression, and allow for regulations require applicants for ITAs reduced to the lowest level practicable. important celebratory events. to include information about the Construction activities may result after The ice roads/trails construction availability and feasibility (economic the seals leave the shutdown zone on projects are generally remote from and technological) of equipment, their own. subsistence use areas. Nuiqsut is the methods, and manner of conducting The prescribed mitigation and closest Native Alaskan community to such activity or other means of effecting monitoring measures are described the Northstar, ODS and SID facilities; the least practicable adverse impact below.

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Wildlife Training locations, so vehicles travel on ice disturbed area and when safety of Prior to initiation of sea ice road- and roads/trails will not deviate to personnel is ensured; • If a seal is observed on ice within ice trail-related activities, project undisturbed areas; and • Personnel will be instructed to 50 m (164 ft) of the centerline of the ice personnel associated with ice road remain in the vehicle and safely road/trail, the following mitigation construction, maintenance, use or continue, if they encounter a ringed seal measure will be implemented; and decommissioning (i.e., ice road while driving on the road. • Construction, maintenance or construction workers, surveyors, decommissioning activities associated security personnel, and the Mitigation Measures After March 1st with ice roads and trails will not occur environmental team) will receive annual After March 1st, and continuing until within 50 m (164 ft) of the observed training on implementing mitigation decommissioning of ice roads/trails in ringed seal, but may proceed as soon as and monitoring measures. Personnel are late May or early June, the on-ice the ringed seal, of its own accord, moves advised that interactions with, or activities mentioned above can occur farther than 50 m (164 ft) distance away approaching, any wildlife is prohibited. anywhere on sea ice where water depth from the activities or has not been Annual training also includes reviewing is less than 3 m (10 ft) (i.e., habitat is observed within that area for at least 24 the company’s Wildlife Management not suitable for ringed seal lairs). hours. Transport vehicles (i.e., vehicles Plan. In addition to the mitigation and However, if the water is greater than 3 not associated with construction, monitoring plans, other topics in the m (10 ft) in depth, these activities maintenance or decommissioning) may training will include: should only occur within the • continue their route within the Ringed Seal Identification and Brief boundaries of the driving lane or designated road/trail without stopping. Life History; shoulder area of the ice road/trail and • Physical Environment (habitat other areas previously disturbed (e.g., Monitoring and Reporting characteristics and how to potentially spill and emergency response areas, In order to issue an LOA for an identify habitat); snow push areas) when the safety of activity, Section 101(a)(5)(A) of the • Ringed Seal Use in the Ice Road personnel is ensured. MMPA states that NMFS must set forth Region (timing, location, habitat use, In addition to the general Mitigation requirements pertaining to the birthing lairs, breathing holes, basking, Measures, the following measures will monitoring and reporting of such taking. etc.); also be implemented after March 1st: The MMPA implementing regulations at • Potential Effects of Disturbance; and • Ice road/trail construction, 50 CFR 216.104 (a)(13) indicate that • Importance of Lairs, Breathing maintenance and decommissioning will requests for authorizations must include Holes and Basking to Ringed Seals. be performed within the boundaries of the suggested means of accomplishing General Mitigation Measures the road/trail and shoulders, with most the necessary monitoring and reporting Implemented Throughout the Ice Road/ work occurring within the driving lane. that will result in increased knowledge Trail Season To the extent practicable and when of the species and of the level of taking safety of personnel is ensured, or impacts on populations of marine General mitigation measures will be equipment will travel within the driving mammals that are expected to be implemented through the entire ice lane and shoulder areas; present in the action area. Effective road/trail season (December through • Blading and snow blowing of ice reporting is critical both to compliance May) including during construction, roads will be limited to the previously as well as ensuring that the most value maintenance, use and decommissioning. disturbed ice road/shoulder areas to the is obtained from the required • Ice road/trail speed limits will be extent safe and practicable. Snow will monitoring. no greater than approximately 74.5 km be plowed or blown from the ice road Monitoring and reporting (45 miles) per hour (mph) under typical surface; requirements prescribed by NMFS circumstances but may be exceeded in • In the event snow is accumulating should contribute to improved emergency situations. Travel on ice on a road within a 50 m (164 ft) radius understanding of one or more of the roads and trails is restricted to industry of an identified downwind seal or seal following: staff; lair (as identified by seal ice structure), • Occurrence of marine mammal • Following existing safety measures, operational measures will be used to species or stocks in the area in which delineators will mark the roadway in a avoid seal impacts, such as pushing take is anticipated (e.g., presence, minimum of 0.4 km (1⁄4-mile) snow further down the road before abundance, distribution, density); increments on both sides of the ice road blowing it off the roadway. Vehicles • Nature, scope, or context of likely to delineate the path of vehicle travel will not stop within 50 m (164 ft) of marine mammal exposure to potential and areas of planned on-ice activities identified seals or within 150 m (500 ft) stressors/impacts (individual or (e.g., emergency response exercises). of known seal lairs; cumulative, acute or chronic), through Following existing safety measures • When safety of personnel is better understanding of: (1) Action or currently used for ice trails, delineators ensured, tracked vehicle operation will environment (e.g., source will mark one side of an ice trail a be limited to the previously disturbed characterization, propagation, ambient minimum of every 0.4 km (1⁄4 mile). ice trail areas. When safety requires a noise); (2) affected species (e.g., life Delineators will be color-coded, new ice trail to be constructed after history, dive patterns); (3) co-occurrence following existing safety protocol, to March 1st, construction activities such of marine mammal species with the indicate the direction of travel and as drilling holes in the ice to determine action; or (4) biological or behavioral location of the ice road or trail. These ice quality and thickness, will be context of exposure (e.g., age, calving or measures will ensure that vehicles stay conducted only during daylight hours feeding areas); on disturbed ice roads/trails and will with good visibility. Ringed seal • Individual marine mammal not deviate to undisturbed areas; structures will be avoided by a responses (behavioral or physiological) • Corners of rig mats, steel plates, and minimum of 50 m (164 ft) during ice to acoustic stressors (acute, chronic, or other materials used to bridge sections testing and new trail construction. Once cumulative), other stressors, or of hazardous ice, will be clearly marked the new ice trail is established, tracked cumulative impacts from multiple or mapped using GPS coordinates of the vehicle operation will be limited to the stressors;

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• How anticipated responses to • Observers for ice road activities • Activities occurring during stressors impact either: (1) Long-term need not be trained Protected Species observation including equipment being fitness and survival of individual Observers (PSOs), but they must have used and its purpose, and approximate marine mammals; or (2) populations, received the training described above distance to ringed seal(s); species, or stocks; and understand the applicable sections • Actions taken to mitigate effects of • Effects on marine mammal habitat of the Wildlife Interaction Plan. In interaction emphasizing: (1) Which (e.g., marine mammal prey species, addition, they must be capable of mitigation and/or monitoring measures acoustic habitat, or other important detecting, observing and monitoring were successful; (2) which mitigation physical components of marine ringed seal presence and behaviors, and and/or monitoring measures may need mammal habitat); and accurately and completely recording to be improved to reduce interactions • Mitigation and monitoring data; and with ringed seals; (3) the effectiveness effectiveness. • Observers will have no other and practicality of implementing primary duty than to watch for and General Monitoring Measures mitigation and monitoring measures; (4) report observations related to ringed Implemented Throughout the Ice Road/ any issues or concerns regarding seals during this survey. If weather Trail Season implementation of mitigation and/or conditions become unsafe, the observer monitoring measures; and (5) potential General monitoring measures will be may be removed from the monitoring effects of interactions based on implemented through the entire ice activity. observation data; road/trail season including during If a ringed seal structure (i.e., • Proposed updates (if any) to construction, maintenance, use and breathing hole or lair) is observed Wildlife Management Plan(s) or decommissioning. within 150 m (500 ft) of the ice road/ Mitigation and Monitoring Measures; Hilcorp and Eni are required to trail, the location of the structure will be and implement the following monitoring reported to the Environmental Specialist • The methods used for detection of measures. who will then carry out notification seals and seal structures with an If a ringed seal is observed within 50 protocol identified above and: assessment of their effectiveness. m (164 ft) of the center of an ice road • An observer will monitor the In the event that personnel involved or trail, the operator’s Environmental structure every 6 hours on the day of the in the construction activities discover Specialist will be immediately notified initial sighting to determine whether a an injured or dead marine mammal, with the information provided in the ringed seal is present. Monitoring for Hilcorp or Eni shall report the incident Reporting section below. the seal will occur every other day the • The Environmental Specialist will to the Office of Protected Resources ice road is being used unless it is (OPR) (301–427–8401), NMFS and to relay the seal sighting location determined the structure is not actively information to all ice road personnel the Alaska Region (AKR) regional being used (i.e., a seal is not sighted at stranding coordinator (1–877–925– and the company’s office personnel that location during monitoring). A lair responsible for wildlife interaction, 7773). or breathing hole does not automatically If in the rare event a seal is killed or following notification protocols imply that a ringed seal is present. described in the company-specific seriously injured by ice road/trail Wildlife Management Plan. All other Engaging With Subsistence Hunters for activities, NMFS must be notified data will be recorded and logged. Monitoring Recommendations immediately. If an ice road/trail • The Environmental Specialist or In addition, Hilcorp and Eni are personnel discover a dead or injured designated person will monitor the required to (1) engage local hunters seal but the cause of injury or death is ringed seal to document the animal’s through the Ice Seal Committee point of unknown or believed not to be related location relative to the road/trail. All contact to gather recommendations on to ice road/trail activities, NMFS must work that is occurring when the ringed methods for ringed seal detection along be notified within 48 hours of seal is observed and the behavior of the sea ice roads/trails within the exposure discovery. seal during those activities will be areas, and (2) incorporate these Mitigation for Subsistence Uses of documented until the animal is at least recommendations into Hilcorp and Eni’s Marine Mammals or Plan of 50 m (164 ft) away from the center of the training materials provided to personnel Cooperation road/trail or is no longer observed. responsible for monitoring for ringed • The Environmental Specialist or seals along sea ice roads/trails. Regulations at 50 CFR 216.104(a)(12) designated person will contact further require ITA applicants appropriate state and Federal agencies Reporting conducting activities that take place in as required. Hilcorp and Eni are required to Arctic waters to provide a POC or submit a draft report on all ringed seals information that identifies what Monitoring Measures After March 1st observed annually under the LOA measures have been taken and/or will In addition to the general Monitoring within 90 calendar days of be taken to minimize adverse effects on Measures, the following measures will decommissioning the ice road/trail. A the availability of marine mammals for also be implemented after March 1st: final report shall be prepared and subsistence purposes. A plan must If an ice road or trail is being actively submitted within 30 days following include the following: used, under daylight conditions with resolution of comments on the draft • A statement that the applicant has good visibility, a dedicated observer report from NMFS. If 30 days have notified and provided the affected (not the vehicle operator) will conduct passed and Hilcorp or Eni does not subsistence community with a draft a survey along the sea ice road/trail to receive comments from NMFS, the draft plan of cooperation; observe if any ringed seals are within report is considered to be final. The • A schedule for meeting with the 150 m (500 ft) of the roadway corridor. report must include: affected subsistence communities to The following survey protocol will be • Date, time, location of observation; discuss proposed activities and to implemented: • Ringed seal characteristics (i.e., resolve potential conflicts regarding any • Surveys will be conducted every adult or pup, behavior (avoidance, aspects of either the operation or the other day during daylight hours; resting, etc.); plan of cooperation;

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• A description of what measures the in place for Northstar by BPXA. The determination. In addition to applicant has taken and/or will take to policy is a commitment to the eleven considering estimates of the number of ensure that proposed activities will not whaling villages, the Inupiat marine mammals that might be ‘‘taken’’ interfere with subsistence whaling or Community and the Siberian Yupik through harassment, NMFS considers sealing; and Community to establish financial other factors, such as the likely nature • What plans the applicant has to assurance in the event of an oil spill. of any responses (e.g., intensity, continue to meet with the affected While the focus is on bowhead whales, duration), the context of any responses communities, both prior to and while the policy does include other Arctic (e.g., critical reproductive time or conducting the activity, to resolve marine resources including ringed seals. location, migration), as well as effects conflicts and to notify the communities The Good Neighbor Policy also outlines on habitat, and the likely effectiveness of any changes in the operation. how Hilcorp would provide of the mitigation. We also assess the As discussed earlier, Hilcorp and transportation for the subsistence number, intensity, and context of Eni’s ice roads and trails construction is community to alternate hunting areas in estimated takes by evaluating this expected to have no unmitigable the event that a spill prevents the use of information relative to population adverse impacts on subsistence use of Cross Island or other hunting areas. It status. Consistent with the 1989 marine mammals in the project area, also has provisions for providing preamble for NMFS’s implementing and the construction projects would interim alternative food supplies to regulations (54 FR 40338; September 29, occur in areas away from subsistence community members, along with 1989), the impacts from other past and activities during the time when there is counselling and cultural assistance. ongoing anthropogenic activities are no subsistence activities. Nevertheless, Hilcorp is committed to adhering to the incorporated into this analysis via their both Hilcorp and Eni have developed CAA and Good Neighbor Policy for the impacts on the environmental baseline POCs to ensure that no impact would duration of North Slope operations as (e.g., as reflected in the regulatory status occur. Both companies have been necessary. of the species, population size and engaging the communities of Utqiagvik growth rate where known, ongoing Eni and Nuiqsut to share information about sources of human-caused mortality, and planned exploration/development To help minimize disturbances to specific consideration of take by serious activities and to maintain dialogue marine mammal subsistence resources, injury/mortality previously authorized about measures to minimize potential Eni also signs a CAA each year with the for other NMFS research activities). impacts on the subsistence harvest of AEWC and Whaling Captains’ seals or whales. For the ice roads and Associations of nearby North Slope Serious Injury and Mortality ice trails construction and maintenance communities. The CAA describes NMFS is authorizing a very small activities, Hilcorp and Eni developed measures to minimize any adverse number of serious injuries or mortalities further mitigation and monitoring effects on the availability of bowhead that could occur incidental to ice roads measures to minimize the potential whales for subsistence use. Eni also and ice trails construction and impacts to subsistence use of marine conducted multiple community maintenance. mammals in the area. These measures meetings and meetings with subsistence NMFS considers many factors, when are described below. organizations such as the AEWC and available, in making a negligible impact NWCA to establish and maintain determination, including, but not Hilcorp positive relationships with locals that limited to, the status of the species or To help minimize disturbances to rely on subsistence resources in the stock relative to the OSP level (if marine mammal subsistence resources, area. known), whether the recruitment rate Hilcorp has signed a CAA with the Based on our evaluation of the for the species or stock is increasing, Alaska Eskimo Whaling Commission applicant’s proposed measures, NMFS decreasing, stable, or unknown, the size (AEWC) and Whaling Captains’ has determined that the mitigation and distribution of the population, and Associations of nearby North Slope measures provide the means effecting existing impacts and environmental communities. The CAA describes the least practicable impact on the conditions. The PBR metric can help measures to minimize any adverse affected species or stocks and their inform the potential effects of serious effects on the availability of bowhead habitat, paying particular attention to injury and mortality caused by activities whales for subsistence use. Hilcorp also rookeries, mating grounds, and areas of authorized under Section 101(a)(5)(A) of conducts the Cross Island whaling similar significance, and on the the MMPA on marine mammal stocks. survey every year to document any availability of such species or stock for PBR is defined in the MMPA (16 conflicts and ensure that operations subsistence uses. U.S.C. 1362(20)) as the maximum continue to be compatible with the number of animals, not including Negligible Impact Analysis and hunt. natural mortalities, that may be removed The CAA and much of the Determination from a marine mammal stock while coordination focus on whales and NMFS has defined negligible impact allowing that stock to reach or maintain whaling activities. To date, the Native as an impact resulting from the its OSP, and is a measure to be community has not expressed concerns specified activity that cannot be considered when evaluating the effects over interactions with seals, particularly reasonably expected to, and is not of serious injury and mortality on a during the ice-covered seasons. Hilcorp reasonably likely to, adversely affect the marine mammal species or stock. OSP is states that it will continue to address species or stock through effects on defined by the MMPA (16 U.S.C. questions and concerns from annual rates of recruitment or survival 1362(9)) as the number of animals community members, and continue to (50 CFR 216.103). A negligible impact which will result in the maximum provide them with contact information finding is based on the lack of likely productivity of the population or the of project management to which they adverse effects on annual rates of species, keeping in mind the carrying can direct concerns related to Northstar recruitment or survival (i.e., population- capacity of the habitat and the health of operations. level effects). An estimate of the number the ecosystem of which they form a In addition, Hilcorp has adopted the of takes alone is not enough information constituent element. PBR values are ‘‘Good Neighbor Policy’’ originally put on which to base an impact calculated by NMFS as the level of

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annual removal from a stock that will Fisheries Science Center fisheries • The only harassment is Level B allow that stock to equilibrate within research activities in the Arctic (84 FR harassment in the form of brief and OSP at least 95 percent of the time. 46788; September 5, 2019). This localized behavioral disturbance and To specifically use PBR, along with authorization authorizes up to four avoidance; other factors, to evaluate the effects of mortalities annually over the 5-year • The amount of takes, by serious injury and mortality, we first regulation. In the case of the Hilcorp-Eni harassment, is low compared to calculate a metric that incorporates ice roads and ice trails construction, the population sizes; information regarding ongoing authorized taking, by serious injury and • Critical behaviors such as lairing anthropogenic serious injury and mortality, of 12 ringed seals over the and pupping by ringed seals would be mortality into the PBR value (i.e., PBR course of 5 years, equates to an average avoided and minimized through of less than four seals serious injury/ minus the total annual anthropogenic implementation of ice road Best mortality annually. This number is far mortality/serious injury estimate), Management Plans; which is called ‘‘residual PBR’’. We less than the 10 percent r-PBR of 405 • No long lasting modification in then consider how the anticipated seals, when considering mortality and serious injuring caused by other marine mammal habitat; and potential incidental serious injury and • mortality from the activities being anthropogenic sources. This amount of Ice roads/trails construction and evaluated compares to residual PBR. take, by mortality and serious injury, is maintenance would only occur between Anticipated or potential serious injury considered insignificant and therefore December and May each year. and mortality that exceeds residual PBR supports our negligible impact finding. Based on the analysis contained is considered to have a higher Harassment herein of the likely effects of the likelihood of adversely affecting rates of specified activity on marine mammals Hilcorp and Eni requested, and NMFS recruitment or survival, while and their habitat, and taking into is authorizing, take, by Level B anticipated serious injury and mortality consideration the implementation of the harassment, of ringed seals. The amount that is equal to or less than residual PBR monitoring and mitigation measures, of taking to be authorized is low has a lower likelihood (both examples NMFS finds that the total marine compared to marine mammal given without consideration of other mammal take from the activity will have abundance. Potential impacts of types of take, which also factor into a a negligible impact on all affected Hilcorp-Eni’s ice roads and ice trails negligible impact determination). For a marine mammal species or stocks. construction activities are mostly from species or stock with incidental serious behavioral disturbances due to exposure Small Numbers injury and mortality less than 10 to machinery and human activity. The As noted above, only small numbers percent of residual PBR, we consider potential effect of the Level B serious injury and mortality from the of incidental take may be authorized harassment is expected to be localized under Section 101(a)(5)(A) of the MMPA specified activities to represent an and brief. The construction crew would for specified activities. The MMPA does insignificant incremental increase in be required to closely monitor ringed not define small numbers and so, in ongoing anthropogenic serious injury seals in the vicinity of the project practice, where estimated numbers are and mortality that alone (i.e., in the activity and to make sure that potential available, NMFS compares the number absence of any other take) cannot affect impacts are within the levels that are of individuals taken to the most annual rates of recruitment and analyzed. survival. In summary and as described above, appropriate estimation of abundance of Regarding the impacts of the specified the following factors primarily support the relevant species or stock in our activities analyzed here, a stock-wide our determination that the impacts determination of whether an PBR for ringed seals is unknown; resulting from this activity are not authorization is limited to small however, Muto et al. (2019) estimate expected to adversely affect the species numbers of marine mammals. PBR for ringed seals in the Bearing Sea or stock through effects on annual rates Additionally, other qualitative factors alone to be 4,755 seals. Total annual of recruitment or survival: may be considered in the analysis, such mortality and serious injury is 700 for • Only 12 ringed seals are authorized as the temporal or spatial scale of the a residual PBR (r-PBR) of 4,055, which to be taken by serious injury/mortality activities. means that the 10 percent insignificance over 5 years; i.e., less than 0.1 percent The amount of total taking (i.e., Level threshold is 406 seals. Currently there is of residual PBR (considering only a B harassment and serious injury/ one authorized MMPA ITA authorizing partial abundance estimate); mortality) of ringed seal each year is less takes of serious injury/mortality of • No injury by permanent hearing than 1 percent of the population (Table ringed seals as a result of NMFS Alaska threshold shift is expected; 7).

TABLE 7—AMOUNT OF RINGED SEAL AUTHORIZED TAKE RELATIVE TO POPULATION ESTIMATES (Nbest)

Population Percent of Species Stock estimate Total take population

Ringed seal ...... Alaska ...... 170,000 27 <1

Based on the analysis contained be taken relative to the population sizes have an ‘‘unmitigable adverse impact’’ herein of the activity (including the of the affected species or stocks. on the subsistence uses of the affected prescribed mitigation and monitoring marine mammal species or stocks by Impact on Availability of Affected measures) and the anticipated take of Alaskan Natives. NMFS has defined Species for Taking for Subsistence Uses marine mammals, NMFS finds that ‘‘unmitigable adverse impact’’ in 50 CFR small numbers of marine mammals will In order to issue an ITA, NMFS must 216.103 as an impact resulting from the find that the specified activity will not specified activity: (1) That is likely to

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reduce the availability of the species to modifications would have a reasonable action is not likely to result in jeopardy a level insufficient for a harvest to meet likelihood of reducing adverse effects to to the species named above or adversely subsistence needs by: (i) Causing the marine mammals and if the measures modify their critical habitat. marine mammals to abandon or avoid are practicable. Classification hunting areas; (ii) Directly displacing The following are some of the subsistence users; or (iii) Placing possible sources of applicable data to be Pursuant to the procedures physical barriers between the marine considered through the adaptive established to implement Executive mammals and the subsistence hunters; management process: (1) Results from Order 12866, the Office of Management and (2) That cannot be sufficiently monitoring reports, as required by and Budget has determined that this mitigated by other measures to increase MMPA authorizations; (2) results from final rule is not significant. the availability of marine mammals to general marine mammal and sound Pursuant to section 605(b) of the allow subsistence needs to be met. research; and (3) any information which Regulatory Flexibility Act (RFA), the As described in the Effects of reveals that marine mammals may have Chief Counsel for Regulation of the Specified Activities on Subsistence Uses been taken in a manner, extent, or Department of Commerce certified to of Marine Mammals section of the number not authorized by these the Chief Counsel for Advocacy of the document, ringed seal is one of the key regulations or subsequent LOAs. Small Business Administration at the subsistence species that is being proposed rule stage that this action will harvested by native subsistence users. National Environmental Policy Act not have a significant economic impact However, the ice roads/trails To comply with the National on a substantial number of small construction and maintenance would Environmental Policy Act of 1969 entities. Hilcorp and Eni are the only occur far from any subsistence activities (NEPA; 42 U.S.C. 4321 et seq.) and entities that would be subject to the and would be separated temporarily NOAA Administrative Order (NAO) requirements in these final regulations. from subsistence activities. In addition, 216–6A, NMFS must review our During construction, Hilcorp and Eni Hilcorp and Eni have proposed and proposed action (i.e., the promulgation would employ or contract hundreds of NMFS has included several mitigation of regulations and subsequent issuance people and the ice roads and trails measures to address potential impacts of incidental take authorization) with construction would generate a large sum on the availability of marine mammals respect to potential impacts on the of revenues. Therefore, Hilcorp and Eni for subsistence use. In addition, both human environment. are not small governmental Hilcorp and Eni have developed POCs Accordingly, NMFS prepared an jurisdictions, small organizations, or and worked with subsistence use Environmental Assessment (EA) and small businesses, as defined by the RFA. communities in the vicinity of the issued a Finding of No Significant No comments were received regarding project areas. Hilcorp and Eni further Impact (November 2020) to consider the this certification or on the economic indicate that they will sign a CAA to environmental impacts associated with impacts of the rule more generally. As ensure that there will be no unmitigable the final rule. a result, a regulatory flexibility analysis impact on subsistence uses of marine NMFS’ final EA is available online at is not required and none has been mammals during the ice roads and ice https://www.fisheries.noaa.gov/permit/ prepared. Notwithstanding any other trails construction and maintenance. incidental-take-authorizations-under- provision of law, no person is required Based on the description of the marine-mammal-protection-act. to respond to nor must a person be specified activity, the measures subject to a penalty for failure to comply described to minimize adverse effects Endangered Species Act (ESA) with a collection of information subject on the availability of marine mammals Section 7(a)(2) of the ESA of 1973 (16 to the requirements of the Paperwork for subsistence purposes, and the U.S.C. 1531 et seq.) requires that each Reduction Act (PRA) unless that mitigation and monitoring measures, Federal agency insure that any action it collection of information displays a NMFS has determined that there will authorizes, funds, or carries out is not currently valid OMB control number. not be an unmitigable adverse impact on likely to jeopardize the continued This final rule contains collection-of- subsistence uses from Hilcorp and Eni’s existence of any endangered or information requirements subject to the activities. threatened species or result in the provisions of the PRA. These destruction or adverse modification of requirements have been approved by Adaptive Management designated critical habitat. To ensure OMB under control number 0648–0151 The regulations governing the take of ESA compliance for the issuance of and include applications for regulations, marine mammals incidental to Hilcorp ITAs, NMFS consults internally, in this subsequent LOAs, and reports. and Eni’s ice roads/trails construction case with the Alaska Region Protected Waiver of Delay in Effective Date and maintenance activities contain an Resources Division, whenever we adaptive management component. propose to authorize take for The Assistant Administrator for The reporting requirements associated endangered or threatened species. NMFS has determined that there is good with this final rule are designed to Pursuant to the MMPA and through cause under the Administrative provide NMFS with monitoring data these regulations and the associated Procedure Act (5 U.S.C. 553(d)(3)) to from the previous year to allow LOA, NMFS is authorizing take of waive the 30-day delay in the effective consideration of whether any changes Alaska stock of ringed seal, which is date of this final rule. No individual or are appropriate. The use of adaptive listed under the ESA. entity other than Hilcorp and Eni is management allows NMFS to consider The Permit and Conservation Division affected by the provisions of these new information from different sources requested initiation of section 7 regulations. Hilcorp and Eni have to determine (with input from Hilcorp consultation with the Alaska Region informed NMFS that they request that and Eni regarding practicability) on an Protected Resources Division for the this final rule take effect as soon as is annual or biennial basis if mitigation or promulgation of 5-year regulations and possible so as to avoid the potential for monitoring measures should be the subsequent issuance of LOAs. The disruption in Hilcorp and Eni’s planned modified (including additions or Alaska Region Protected Resources activities. The delay in the issuance of deletions). Mitigation measures could be Division issued a Biological Opinion the final rule would cause serious modified if new data suggests that such (March 2020) concluding that NMFS’ impacts on operations by Hilcorp and

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Eni in the project areas, as the Subpart P—Taking Marine Mammals marine mammal for taking for companies rely on the short ice-covered Incidental to Ice Roads and Ice Trails subsistence uses. season for various activities on the Construction and Maintenance on § 217.154 Mitigation requirements. North Slope. NMFS was unable to Alaska’s North Slope accommodate the 30-day delay of When conducting the activities § 217.150 Specified activity and specified identified in § 217.150(a), the mitigation effectiveness period due to the need for geographical region. measures contained in any LOA issued additional time to address public (a) Regulations in this subpart apply under §§ 216.106 of this chapter and comment and carry out required only to Hilcorp Alaska, LLC (Hilcorp) 217.156 must be implemented. These reviews, including, in particular, to and Eni US Operating Co. Inc. (Eni) and mitigation measures shall include but ensure an accurate assessment of the those persons they authorize or fund to are not limited to: likelihood of seal mortality and serious conduct activities on their behalf for the (a) General conditions. (1) Hilcorp injury from Hilcorp and Eni’s taking of marine mammals that occurs and Eni must renew, on an annual basis, construction activities. For these in the areas outlined in paragraph (b) of the Plans of Cooperation (POCs), reasons, NMFS finds good cause to this section and that occurs incidental throughout the life of the regulations; waive the 30-day delay in the effective to construction and maintenance of ice (2) Copies of any issued LOAs must date. roads and ice trails. be in the possession of Hilcorp and Eni, their designees, and work crew List of Subjects in 50 CFR Part 217 (b) The taking of marine mammals by Hilcorp and Eni may be authorized in personnel operating under the authority Administrative practice and two Letters of Authorization (LOAs) of the issued LOAs; and procedure, Alaska, Endangered and only if it occurs on Alaska’s North (3) Prior to initiation of sea ice road- threatened species, Indians, Marine Slope. and ice trail-related activities, project mammals, Oil and gas exploration, personnel associated with ice road § 217.151 Effective dates. construction, maintenance, use or Reporting and recordkeeping Regulations in this subpart are decommissioning must receive annual requirements, Wildlife. effective from December 22, 2020 training on implementing mitigation Dated: November 24, 2020. through November 30, 2025. and monitoring measures: Samuel D. Rauch, III, (i) Personnel must be advised that § 217.152 Permissible methods of taking. Deputy Assistant Administrator for interactions with, or approaching, any Regulatory Programs, National Marine Under LOAs issued pursuant to wildlife is prohibited; Fisheries Service. §§ 216.106 of this chapter and 217.156, (ii) Annual training must also include the Holders of the LOAs (hereinafter reviewing Hilcorp and Eni’s Wildlife For reasons set forth in the preamble, ‘‘Hilcorp’’ and ‘‘Eni’’) may incidentally, Management Plan; and 50 CFR part 217 is amended as follows: but not intentionally, take marine (iii) In addition to the mitigation and mammals within the area described in monitoring plans, other topics in the PART 217—REGULATIONS § 217.150(b) by mortality, serious injury, training must include: GOVERNING THE TAKE OF MARINE Level A harassment, or Level B (A) Ringed seal identification and MAMMALS INCIDENTAL TO harassment associated with ice road and brief life history; SPECIFIED ACTIVITIES ice trail construction and maintenance (B) Physical environment (habitat activities, provided the activities are in characteristics and how to potentially ■ 1. The authority citation for part 217 compliance with all terms, conditions, identify habitat); continues to read as follows: and requirements of the regulations in (C) Ringed seal use in the ice road this subpart and the appropriate LOAs. region (timing, location, habitat use, Authority: 16 U.S.C. 1361 et seq., unless birthing lairs, breathing holes, basking, otherwise noted. § 217.153 Prohibitions. etc.); Notwithstanding takings ■ 2. Add subpart P to read as follows: (D) Potential effects of disturbance; contemplated in § 217.152 and and Subpart P—Taking Marine Mammals authorized by the LOAs issued under (E) Importance of lairs, breathing Incidental to Ice Roads and Ice Trails §§ 216.106 of this chapter and 217.156, holes and basking to ringed seals. Construction and Maintenance on no person in connection with the (b) General mitigation measures activities described in § 217.150 may: Alaska’s North Slope throughout the Ice Road/Trail Season (a) Violate, or fail to comply with, the (December through May). (1) Ice road/ Sec. terms, conditions, and requirements of trail speed limits must be no greater 217.150 Specified activity and specified this subpart or an LOA issued under than 72.4 km (45 miles) per hour (mph); geographical region. §§ 216.106 of this chapter and 217.156; speed limits must be determined on a 217.151 Effective dates. (b) Take any marine mammal not case-by-case basis based on 217.152 Permissible methods of taking. specified in such LOAs; environmental, road conditions and ice 217.153 Prohibitions. (c) Take any marine mammal road/trail longevity considerations; 217.154 Mitigation requirements. specified in such LOAs in any manner (2) Following existing safety 217.155 Requirements for monitoring and other than as specified; measures, delineators must mark the reporting. (d) Take a marine mammal specified roadway in a minimum of 0.4 km (1⁄4- 217.156 Letters of Authorization. in such LOAs if NMFS determines such mile) increments on both sides of the ice 217.157 Renewals and modifications of taking results in more than a negligible road to delineate the path of vehicle Letters of Authorization. impact on the species or stocks of such travel and areas of planned on-ice 217.158–217.159 [Reserved] marine mammal; or activities (e.g., emergency response (e) Take a marine mammal specified exercises). Following existing safety in such LOAs if NMFS determines such measures currently used for ice trails, taking results in an unmitigable adverse delineators must mark one side of an ice impact on the species or stock of such trail a minimum of every 0.4 km (1⁄4

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mile). Delineators must be color-coded, (i) Construction, maintenance or corridor. The following survey protocol following existing safety protocol, to decommissioning activities associated must be implemented: indicate the direction of travel and with ice roads and trails must not occur (i) Surveys must be conducted every location of the ice road or trail; within 50 m (164 ft) of the observed other day during daylight hours; (3) Corners of rig mats, steel plates, ringed seal, but may proceed as soon as (ii) Observers for ice road activities and other materials used to bridge the ringed seal, of its own accord, moves must have received the training sections of hazardous ice, must be farther than 50 m (164 ft) distance away described in § 217.154(a) and clearly marked or mapped using GPS from the activities or has not been understand the applicable sections of coordinates of the locations; and observed within that area for at least 24 the Wildlife Interaction Plan; (4) Personnel must be instructed to hours; and (iii) Observers for ice road activities remain in the vehicle and safely (ii) Transport vehicles (i.e., vehicles must be capable of detecting, observing continue, if they encounter a ringed seal not associated with construction, and monitoring ringed seal presence while driving on the road. maintenance or decommissioning) may and behaviors, and accurately and (c) Additional mitigation measures continue their route within the completely recording data; after March 1st. In addition to the designated road/trail without stopping. (iv) Observers must have no other general mitigation measures listed in primary duty than to watch for and § 217.154(b), the following measures § 217.155 Requirements for monitoring report observations related to ringed must also be implemented after March and reporting. seals during this survey; and 1st: (a) All marine mammal monitoring (v) If weather conditions become (1) Ice road/trail construction, must be conducted in accordance with unsafe, the observer may be removed maintenance and decommissioning Hilcorp and Eni’s Marine Mammal from the monitoring activity. must be performed within the Mitigation and Monitoring Plan (4MP). (2) If a ringed seal structure (i.e., boundaries of the road/trail and This plan may be modified throughout breathing hole or lair) is observed shoulders, with most work occurring the life of the regulations upon NMFS within 50 m (150 ft) of the ice road/trail, within the driving lane. To the extent review and approval. the location of the structure must be practicable and when safety of (b) General monitoring measures will reported to the Environmental Specialist personnel is ensured, equipment must be implemented through the entire ice and: travel within the driving lane and road/trail season including during (i) An observer must monitor the structure every 6 hours on the day of the shoulder areas. construction, maintenance, use and (2) Blading and snow blowing of ice decommissioning. initial sighting to determine whether a roads must be limited to the previously (1) If a ringed seal is observed within ringed seal is present. (ii) Monitoring for the seal must occur disturbed ice road/shoulder areas to the 50 m (164 ft) of the center of an ice road every other day the ice road is being extent safe and practicable. Snow must or trail, the operator’s Environmental used unless it is determined the be plowed or blown from the ice road Specialist must be immediately notified structure is not actively being used (i.e., surface. with the information provided in (3) In the event snow is accumulating paragraph (e) of this section. a seal is not sighted at that location on a road within a 50 m (164 ft) radius (i) The Environmental Specialist must during monitoring). (d) Engaging with subsistence hunters of an identified downwind seal or seal relay the seal sighting location information to all ice road personnel for monitoring recommendations. lair, operational measures must be used (1) Hilcorp and Eni must engage local and the company’s office personnel to avoid seal impacts, such as pushing hunters through the Ice Seal Committee responsible for wildlife interaction, snow further down the road before point of contact to gather following notification protocols blowing it off the roadway. Vehicles recommendations on methods for ringed described in the company-specific must not stop within 50 m (164 ft) of seal detection along sea ice roads/trails Wildlife Management Plan. All other identified seals or within 150 m (500 ft) within the exposure areas. of known seal lairs. data will be recorded and logged. (2) Hilcorp and Eni must incorporate (4) To the extent practicable and (ii) The Environmental Specialist or these recommendations into Hilcorp when safety of personnel is ensured, designated person must monitor the and Eni’s training materials provided to tracked vehicle operation must be ringed seal to document the animal’s personnel responsible for monitoring for limited to the previously disturbed ice location relative to the road/trail. All ringed seals along sea ice roads/trails. trail areas. When safety requires a new work that is occurring when the ringed (e) Reporting requirement at the end- ice trail to be constructed after March seal is observed and the behavior of the of-season. 1st, construction activities such as seal during those activities must be (1) A final end-of-season report drilling holes in the ice to determine ice documented until the animal is at least compiling all ringed seal observations quality and thickness, must be 50 m (150 ft) away from the center of the must be submitted to NMFS Office of conducted only during daylight hours road/trail or is no longer observed. Protected Resources within 90 days of with good visibility. (2) [Reserved] decommissioning the ice roads/trails (5) Ringed seal structures must be (c) Additional monitoring measures annually. The report must include: avoided by a minimum of 50 m (164 ft) after March 1st. In addition to the (i) Date, time, location of observation; during ice testing and new trail general monitoring measures listed in (ii) Ringed seal characteristics (i.e., construction. § 217.155(b), the following measures adult or pup, behavior (avoidance, (6) Once the new ice trail is must also be implemented after March resting, etc.)); established, tracked vehicle operation 1st: (iii) Activities occurring during must be limited to the disturbed area to (1) If an ice road or trail is being observation including equipment being the extent practicable and when safety actively used, under daylight conditions used and its purpose, and approximate of personnel is ensured. with good visibility, a dedicated distance to ringed seal(s); (7) If a seal is observed on ice within observer (not the vehicle operator) must (iv) Actions taken to mitigate effects 50 m (164 ft) of the centerline of the ice conduct a survey along the sea ice road/ of interaction emphasizing: road/trail, the following mitigation trail to observe if any ringed seals are (A) Which mitigation and/or measures must be implemented: within 150 m (500 ft) of the roadway monitoring measures were successful;

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(B) Which mitigation and/or and obtain a modification of the LOA as modifications) if doing so creates a monitoring measures may need to be described in § 217.57. reasonable likelihood of more improved to reduce interactions with (e) The LOAs shall set forth: effectively accomplishing the goals of ringed seals; (1) Permissible methods of incidental the mitigation and monitoring set forth (C) The effectiveness and practicality taking; in the preamble for these regulations. of implementing mitigation and (2) Means of effecting the least (i) Possible sources of data that could monitoring measures; practicable adverse impact (i.e., contribute to the decision to modify the (D) Any issues or concerns regarding mitigation) on the species, its habitat, mitigation, monitoring, or reporting implementation of mitigation and/or and on the availability of the species for measures in an LOA: monitoring measures; and subsistence uses; and (A) Results from Hilcorp or Eni’s (E) Potential effects of interactions (3) Requirements for monitoring and monitoring from the previous year(s). based on observation data; reporting. (B) Results from other marine (v) Proposed updates (if any) to (f) Issuance of the LOAs shall be mammal and/or sound research or Wildlife Interaction Plan(s) or based on a determination that the level studies. Mitigation and Monitoring Measures; of taking will be consistent with the (C) Any information that reveals and findings made for the total taking marine mammals may have been taken (vi) The methods used for detection of allowable under these regulations. in a manner, extent or number not seals and seal structures with an (g) Notice of issuance or denial of an authorized by these regulations or assessment of their effectiveness. LOA shall be published in the Federal subsequent LOAs. (2) In the event a seal is killed or Register within 30 days of a (ii) If, through adaptive management, seriously injured by ice road/trail determination. the modifications to the mitigation, activities, Hilcorp or Eni must monitoring, or reporting measures are immediately cease the specified § 217.157 Renewals and modifications of Letters of Authorization. substantial, NMFS will publish a notice activities and report the incident to the of proposed LOA in the Federal NMFS Office of Protected Resources (a) An LOA issued under §§ 216.106 of this chapter and 217.156 for the Register and solicit public comment. (301–427–8401) and Alaska Region (2) Emergencies. If NMFS determines Stranding Coordinator (877–925–7773). activity identified in § 217.150(a) shall be renewed or modified upon request by that an emergency exists that poses a The report must include the following significant risk to the well-being of the information: the applicant, provided that: (1) The proposed specified activity species or stocks of marine mammals (i) Time and date of the incident; specified in LOAs issued pursuant to (ii) Description of the incident; and mitigation, monitoring, and reporting measures, as well as the §§ 216.106 of this chapter and 217.156, (iii) Environmental conditions (e.g., an LOA may be modified without prior cloud over, and visibility); anticipated impacts, are the same as those described and analyzed for these notice or opportunity for public (iv) Description of all marine mammal comment. Notice would be published in observations in the 24 hours preceding regulations (excluding changes made pursuant to the adaptive management the Federal Register within 30 days of the incident; the action. (v) Species identification or provision in paragraph (c)(1) of this description of the animal(s) involved; section); and §§ 217.158—217.159 [Reserved] (vi) Fate of the animal(s); and (2) NMFS determines that the (vii) Photographs or video footage of mitigation, monitoring, and reporting [FR Doc. 2020–26346 Filed 12–21–20; 8:45 am] the animal(s). measures required by the previous BILLING CODE 3510–22–P (3) In the event ice road/trail LOAs under these regulations were personnel discover a dead or injured implemented. DEPARTMENT OF COMMERCE seal but the cause of injury or death is (b) For LOAs modification or renewal requests by the applicants that include unknown or believed not to be related National Oceanic and Atmospheric changes to the activity or the mitigation, to ice road/trail activities, Hilcorp or Eni Administration must report the incident to the NMFS monitoring, or reporting (excluding changes made pursuant to the adaptive Office of Protected Resources (301–427– 50 CFR Part 679 8401) and Alaska Region Stranding management provision in paragraph Coordinator (877–925–7773) within 48 (c)(1) of this section) that do not change [Docket No. 200227–0066] hours of discovery. the findings made for the regulations or result in no more than a minor change RTID 0648–XA727 § 217.156 Letters of Authorization. in the total estimated number of takes Fisheries of the Exclusive Economic (a) To incidentally take marine (or distribution by species or years), Zone Off Alaska; Inseason Adjustment mammals pursuant to these regulations, NMFS may publish a notice of proposed to the 2021 Bering Sea and Aleutian Hilcorp and Eni must apply for and LOAs in the Federal Register, including Islands Pollock, Atka Mackerel, and obtain an LOA. the associated analysis of the change, Pacific Cod Total Allowable Catch (b) An LOA, unless suspended or and solicit public comment before Amounts revoked, may be effective for a period of issuing the LOA. time not to exceed the expiration date (c) The LOAs issued under §§ 216.106 AGENCY: National Marine Fisheries of these regulations. of this chapter and 217.156 for the Service (NMFS), National Oceanic and (c) If an LOA expires prior to the activity identified in § 217.150(a) may Atmospheric Administration (NOAA), expiration date of these regulations, be modified by NMFS under the Commerce. Hilcorp or Eni may apply for and obtain following circumstances: ACTION: Temporary rule; inseason a renewal of the LOA. (1) Adaptive management. NMFS may adjustment; request for comments. (d) In the event of projected changes modify (including augment) the existing to the activity or to mitigation and mitigation, monitoring, or reporting SUMMARY: NMFS is adjusting the 2021 monitoring measures required by an measures (after consulting with Hilcorp total allowable catch (TAC) amounts for LOA, Hilcorp and Eni must apply for or Eni regarding the practicability of the the Bering Sea and Aleutian Islands

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(BSAI) pollock, Atka mackerel, and FOR FURTHER INFORMATION CONTACT: Steller sea lions occur in the same Pacific cod fisheries. This action is Mary Furuness, 907–586–7228. location as the pollock, Atka mackerel, necessary because NMFS has and Pacific cod fisheries and are listed SUPPLEMENTARY INFORMATION: NMFS determined these TACs are incorrectly as endangered under the Endangered manages the groundfish fishery in the specified, and will ensure the BSAI Species Act (ESA). Pollock, Atka pollock, Atka mackerel, and Pacific cod BSAI exclusive economic zone mackerel, and Pacific cod are a TACs are the appropriate amounts based according to the Fishery Management principal prey species for Steller sea on the best available scientific Plan for Groundfish of the Bering Sea lions in the BSAI. The seasonal information. This action is consistent and Aleutian Islands Management Area apportionment of pollock, Atka with the goals and objectives of the (FMP) prepared by the North Pacific mackerel, and Pacific cod harvest is Fishery Management Plan for Fishery Management Council (Council) necessary to ensure the groundfish Groundfish of the Bering Sea and under authority of the Magnuson- fisheries are not likely to cause jeopardy Aleutian Islands Management Area. Stevens Fishery Conservation and of extinction or adverse modification of Management Act. Regulations governing DATES: Effective 0001 hours, Alaska critical habitat for Steller sea lions. fishing by U.S. vessels in accordance local time (A.l.t.), January 1, 2021, until NMFS published regulations and the with the FMP appear at subpart H of 50 the effective date of the final 2021 and revised harvest limit amounts for CFR part 600 and 50 CFR part 679. 2022 harvest specifications for BSAI pollock, Atka mackerel, and Pacific cod groundfish, unless otherwise modified The final 2020 and 2021 harvest fisheries to implement Steller sea lion or superseded through publication of a specifications for groundfish in the protection measures to insure that notification in the Federal Register. BSAI (85 FR 13553, March 9, 2020) set groundfish fisheries of the BSAI are not Comments must be received at the the 2021 Aleutian Islands (AI) pollock likely to jeopardize the continued following address no later than 4:30 TAC at 19,000 metric tons (mt), the 2021 existence of the western distinct p.m., A.l.t., January 6, 2021. Bering Sea (BS) pollock TAC at population segment of Steller sea lions ADDRESSES: Submit your comments, 1,450,000 mt, the 2021 BSAI Atka or destroy or adversely modify their identified by NOAA–NMFS–2019–0074, mackerel TAC at 54,482 mt, the 2021 BS designated critical habitat (79 FR 70286, by either of the following methods: Pacific cod TAC at 92,633 mt, and the November 25, 2014). • Federal e-Rulemaking Portal: Go to 2021 AI Pacific cod TAC at 13,796 mt. In accordance with § 679.25(a)(1)(iii), www.regulations.gov/ In December 2020, the Council (a)(2)(i)(B), and (a)(2)(iv), the #!docketDetail;D=NOAA-NMFS-2019- recommended a 2021 BS pollock TAC of Administrator, Alaska Region, NMFS 0074, click the ‘‘Comment Now!’’ icon, 1,375,000 mt, which is less than the (Regional Administrator), has complete the required fields, and enter 1,450,000 mt TAC established by the determined that, based on the November or attach your comments. final 2020 and 2021 harvest 2020 SAFE report for this fishery, the • Mail: Submit written comments to specifications for groundfish in the current BSAI pollock, Atka mackerel, Glenn Merrill, Assistant Regional BSAI. The Council also recommended a and Pacific cod TACs are incorrectly Administrator, Sustainable Fisheries 2021 BSAI Atka mackerel TAC of 62,257 specified. Pursuant to § 679.25(a)(1)(iii), Division, Alaska Region NMFS, Attn: mt, which is more than the 54,482 mt the Regional Administrator is adjusting Records. Mail comments to P.O. Box TAC established by the final 2020 and the 2021 BS pollock TAC to 1,375,000 21668, Juneau, AK 99802–1668. 2021 harvest specifications for mt, the 2021 BSAI Atka mackerel TAC Instructions: NMFS may not consider groundfish in the BSAI. Furthermore, to 62,257 mt, and the 2021 BS Pacific comments if they are sent by any other the Council recommended a 2021 BS cod TAC to 111,380 mt. Therefore, method, to any other address or Pacific cod TAC of 111,380 mt, and an Table 2 of the final 2020 and 2021 individual, or received after the AI Pacific cod TAC of 13,796 mt, which harvest specifications for groundfish in comment period ends. All comments is more than the BS Pacific cod TAC of the BSAI (85 FR 13553, March 9, 2020) received are a part of the public record, 92,633 mt, and the same as the AI is revised consistent with this and NMFS will post the comments for Pacific cod TAC of 13,796 mt adjustment. public viewing on www.regulations.gov established by the final 2020 and 2021 Pursuant to § 679.20(a)(5)(i) and (iii), without change. All personal identifying harvest specifications for groundfish in Table 5 of the final 2020 and 2021 information (e.g., name, address), the BSAI. The Council’s recommended harvest specifications for groundfish in confidential business information, or 2021 TACs, and the area and seasonal the BSAI (85 FR 13553, March 9, 2020) otherwise sensitive information apportionments, are based on the Stock is revised for the 2021 BS and AI submitted voluntarily by the sender will Assessment and Fishery Evaluation allocations of pollock TAC to the be publicly accessible. NMFS will report (SAFE), dated November 2020, directed pollock fisheries and to the accept anonymous comments (enter ‘‘N/ which NMFS has determined is the best Community Development Quota (CDQ) A’’ in the required fields if you wish to available scientific information for these directed fishing allowances consistent remain anonymous). fisheries. with this adjustment.

TABLE 5—FINAL 2021 ALLOCATIONS OF POLLOCK TACS TO THE DIRECTED POLLOCK FISHERIES AND TO THE CDQ DIRECTED FISHING ALLOWANCES (DFA) 1 [Amounts are in metric tons]

2021 A season 1 2021 B season 1 Area and sector 2021 Allocations A season SCA harvest B season DFA limit 2 DFA

Bering Sea subarea TAC 1 ...... 1,375,000 n/a n/a n/a CDQ DFA ...... 137,500 61,875 38,500 75,625 ICA 1 ...... 49,500 n/a n/a n/a Total Bering Sea non-CDQ DFA ...... 1,188,000 534,600 332,640 653,400

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TABLE 5—FINAL 2021 ALLOCATIONS OF POLLOCK TACS TO THE DIRECTED POLLOCK FISHERIES AND TO THE CDQ DIRECTED FISHING ALLOWANCES (DFA) 1—Continued [Amounts are in metric tons]

2021 A season 1 2021 B season 1 Area and sector 2021 Allocations A season SCA harvest B season DFA limit 2 DFA

AFA Inshore ...... 594,000 267,300 166,320 326,700 AFA Catcher/Processors 3 ...... 475,200 213,840 133,056 261,360 Catch by CPs ...... 434,808 195,664 n/a 239,144 Catch by CVs 3 ...... 40,392 18,176 n/a 22,216 Unlisted CP Limit 4 ...... 2,376 1,069 n/a 1,307 AFA Motherships ...... 118,800 53,460 33,264 65,340 Excessive Harvesting Limit 5 ...... 207,900 n/a n/a n/a Excessive Processing Limit 6 ...... 356,400 n/a n/a n/a Aleutian Islands subarea ABC ...... 58,384 n/a n/a n/a Aleutian Islands subarea TAC 1 ...... 19,000 n/a n/a n/a CDQ DFA ...... 1,900 1,900 n/a ...... ICA ...... 2,400 1,200 n/a 1,200 Aleut Corporation ...... 14,700 14,700 n/a ...... Area harvest limit 7 ...... n/a n/a n/a n/a 541 ...... 17,515 n/a n/a n/a 542 ...... 8,758 n/a n/a n/a 543 ...... 2,919 n/a n/a n/a Bogoslof District ICA 8 ...... 250 n/a n/a n/a 1 Pursuant to § 679.20(a)(5)(i)(A), the Bering Sea subarea pollock TAC, after subtracting the CDQ DFA (10 percent) and the ICA (4 percent), is allocated as a DFA as follows: Inshore sector—50 percent, catcher/processor sector (CP)—40 percent, and mothership sector—10 percent. In the Bering Sea subarea, 45 percent of the DFA is allocated to the A season (January 20–June 10) and 55 percent of the DFA is allocated to the B season (June 10–November 1). Pursuant to § 679.20(a)(5)(iii)(B)(2)(i) through (iii), the annual Aleutian Islands subarea pollock TAC, after sub- tracting first for the CDQ DFA (10 percent) and second for the ICA (2,400 mt), is allocated to the Aleut Corporation for a pollock directed fishery. In the Aleutian Islands subarea, the A season is allocated up to 40 percent of the Aleutian Islands pollock ABC. 2 In the Bering Sea subarea, pursuant to § 679.20(a)(5)(i)(C), no more than 28 percent of each sector’s annual DFA may be taken from the SCA before noon, April 1. 3 Pursuant to § 679.20(a)(5)(i)(A)(4), 8.5 percent of the DFA allocated to listed CPs shall be available for harvest only by eligible catcher ves- sels with a CP endorsement delivering to listed CPs, unless there is a CP sector cooperative for the year. 4 Pursuant to § 679.20(a)(5)(i)(A)(4)(iii), the AFA unlisted catcher/processors are limited to harvesting not more than 0.5 percent of the catcher/ processor sector’s allocation of pollock. 5 Pursuant to § 679.20(a)(5)(i)(A)(6), NMFS establishes an excessive harvesting share limit equal to 17.5 percent of the sum of the non-CDQ pollock DFAs. 6 Pursuant to § 679.20(a)(5)(i)(A)(7), NMFS establishes an excessive processing share limit equal to 30.0 percent of the sum of the non-CDQ pollock DFAs. 7 Pursuant to § 679.20(a)(5)(iii)(B)(6), NMFS establishes harvest limits for pollock in the A season in Area 541 of no more than 30 percent, in Area 542 of no more than 15 percent, and in Area 543 of no more than 5 percent of the Aleutian Islands pollock ABC. 8 Pursuant to § 679.22(a)(7)(B), the Bogoslof District is closed to directed fishing for pollock. The amounts specified are for incidental catch only and are not apportioned by season or sector. Note: Seasonal or sector apportionments may not total precisely due to rounding.

Pursuant to § 679.20(a)(8), Table 7 of revised for the 2021 seasonal and spatial 80 allocations of the BSAI Atka the final 2020 and 2021 harvest allowances, gear shares, CDQ reserve, mackerel TAC consistent with this specifications for groundfish in the incidental catch allowance, jig, BSAI adjustment. BSAI (85 FR 13553, March 9, 2020) is trawl limited access, and Amendment

TABLE 7—FINAL 2021 SEASONAL AND SPATIAL ALLOWANCES, GEAR SHARES, CDQ RESERVE, INCIDENTAL CATCH ALLOWANCE, AND AMENDMENT 80 ALLOCATIONS OF THE BSAI ATKA MACKEREL TAC [Amounts are in metric tons]

2021 Allocation by area Eastern Sector 1 Season 234 Central Western aleutian aleutian aleutian district/ 5 Bering Sea district district

TAC ...... n/a ...... 25,760 15,450 21,047 CDQ reserve ...... Total ...... 2,756 1,653 2,252 A ...... 1,378 827 1,126 Critical Habitat ...... n/a 496 676 B ...... 1,378 827 1,126 Critical Habitat ...... n/a 496 676 Non-CDQ TAC ...... n/a ...... 23,004 13,797 18,795 ICA ...... Total ...... 800 75 20 Jig 6 ...... Total ...... 111 ...... BSAI trawl limited access ...... Total ...... 2,209 1,372 ......

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TABLE 7—FINAL 2021 SEASONAL AND SPATIAL ALLOWANCES, GEAR SHARES, CDQ RESERVE, INCIDENTAL CATCH ALLOWANCE, AND AMENDMENT 80 ALLOCATIONS OF THE BSAI ATKA MACKEREL TAC—Continued [Amounts are in metric tons]

2021 Allocation by area Eastern Sector 1 Season 234 Central Western aleutian aleutian district/ aleutian 5 district Bering Sea district

A ...... 1,105 686 ...... Critical Habitat ...... n/a 412 ...... B ...... 1,105 686 ...... Critical Habitat ...... n/a 412 ...... Amendment 80 sector ...... Total ...... 19,883 12,350 18,775 A ...... 9,942 6,175 9,387 Critical Habitat ...... n/a 3,705 5,632 B ...... 9,942 6,175 9,387 Critical Habitat ...... n/a 3,705 5,632 1 Section 679.20(a)(8)(ii) allocates the Atka mackerel TACs, after subtracting the CDQ reserves, jig gear allocation, and ICAs, to the Amend- ment 80 and BSAI trawl limited access sectors. The allocation of the ITAC for Atka mackerel to the Amendment 80 and BSAI trawl limited ac- cess sectors is established in Table 33 to 50 CFR part 679 and § 679.91. The CDQ reserve is 10.7 percent of the TAC for use by CDQ partici- pants (see §§ 679.20(b)(1)(ii)(C) and 679.31). 2 Sections 679.20(a)(8)(ii)(A) and 679.22(a) establish temporal and spatial limitations for the Atka mackerel fishery. 3 The seasonal allowances of Atka mackerel are 50 percent in the A season and 50 percent in the B season. 4 Section 679.23(e)(3) authorizes directed fishing for Atka mackerel with trawl gear during the A season from January 20 to June 10 and the B season from June 10 to December 31. 5 Section 679.20(a)(8)(ii)(C)(1)(i) limits no more than 60 percent of the annual TACs in Areas 542 and 543 to be caught inside of Steller sea lion critical habitat; section 679.20(a)(8)(ii)(C)(1)(ii) equally divides the annual TACs between the A and B seasons as defined at § 679.23(e)(3); and section 679.20(a)(8)(ii)(C)(2) requires that the TAC in Area 543 shall be no more than 65 percent of ABC in Area 543. 6 Sections 679.2 and 679.20(a)(8)(i) require that up to 2 percent of the Eastern Aleutian District and the Bering Sea subarea TAC be allocated to jig gear after subtracting the CDQ reserve and the ICA. NMFS sets the amount of this allocation for 2021 at 0.5 percent. The jig gear alloca- tion is not apportioned by season. Note: Seasonal or sector apportionments may not total precisely due to rounding.

Pursuant to § 679.20(a)(7), Table 9 of BSAI (85 FR 13553, March 9, 2020) is cod TAC consistent with this the final 2020 and 2021 harvest revised for the 2021 gear shares and adjustment. specifications for groundfish in the seasonal allowances of the BSAI Pacific TABLE 9—FINAL 2021 SECTOR ALLOCATIONS AND SEASONAL ALLOWANCES OF THE BSAI PACIFIC COD TAC [Amounts are in metric tons]

2021 Seasonal apportionment Sector Percent 2021 Share of 2021 Share of total sector total Season Amount

BS TAC ...... n/a 111,380 n/a n/a ...... n/a BS CDQ ...... n/a 11,918 n/a see § 679.20(a)(7)(i)(B) ...... n/a BS non-CDQ TAC ...... n/a 99,462 n/a n/a ...... n/a AI TAC ...... n/a 13,796 n/a n/a ...... n/a AI CDQ ...... n/a 1,476 n/a see § 679.20(a)(7)(i)(B) ...... n/a AI non-CDQ TAC ...... n/a 12,320 n/a n/a ...... n/a Western Aleutian Island Limit ...... n/a 2,166 n/a n/a ...... n/a Total BSAI non-CDQ TAC 1 ...... 100 111,782 n/a n/a...... n/a Total hook-and-line/pot gear ...... 60.8 67,964 n/a n/a ...... n/a Hook-and-line/pot ICA 2 ...... n/a 400 n/a see § 679.20(a)(7)(ii)(B) ...... n/a Hook-and-line/pot sub-total ...... n/a 67,564 n/a n/a ...... n/a Hook-and-line catcher/processor ...... 48.7 n/a 54,118 Jan 1–Jun 10 ...... 27,600 Jun 10–Dec 31 ...... 26,518 Hook-and-line catcher vessel ≥60 ft LOA ...... 0.2 n/a 222 Jan 1–Jun 10 ...... 113 Jun 10–Dec 31 ...... 109 Pot catcher/processor ...... 1.5 n/a 1,667 Jan 1–Jun 10 ...... 850 Sept 1–Dec 31 ...... 817 Pot catcher vessel ≥60 ft LOA ...... 8.4 n/a 9,334 Jan 1–Jun 10 ...... 4,761 Sept 1–Dec 31 ...... 4,574 Catcher vessel <60 ft LOA using hook-and-line 2.0 n/a 2,222 n/a...... n/a or pot gear. Trawl catcher vessel ...... 22.1 24,704 n/a Jan 20–Apr 1 ...... 18,281 Apr 1–Jun 10 ...... 2,717 Jun 10–Nov 1 ...... 3,706 AFA trawl catcher/processor ...... 2.3 2,571 n/a Jan 20–Apr 1 ...... 1,928 Apr 1–Jun 10 ...... 643 Jun 10–Nov 1 ...... Amendment 80 ...... 13.4 14,979 n/a Jan 20–Apr 1 ...... 11,234 Apr 1–Jun 10 ...... 3,745 Jun 10–Dec 31 ...... Jig ...... 1.4 1,565 n/a Jan 1–Apr 30 ...... 939 Apr 30–Aug 31 ...... 313

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TABLE 9—FINAL 2021 SECTOR ALLOCATIONS AND SEASONAL ALLOWANCES OF THE BSAI PACIFIC COD TAC—Continued [Amounts are in metric tons]

2021 Seasonal apportionment Sector Percent 2021 Share of 2021 Share of total sector total Season Amount

Aug 31–Dec 31 ...... 313 1 The sector allocations and seasonal allowances for BSAI Pacific cod TAC are based on the sum of the BS and AI Pacific cod TACs, after the subtraction of the reserves for the CDQ Program. If the TAC for Pacific cod in either the AI or BS is or will be reached, then directed fishing for Pacific cod in that subarea will be pro- hibited, even if a BSAI allowance remains (§ 679.20(d)(1)(iii)). 2 The ICA for the hook-and-line and pot sectors will be deducted from the aggregate portion of Pacific cod TAC allocated to the hook-and-line and pot sectors. The Regional Administrator approves an ICA of 400 mt for 2021 based on anticipated incidental catch in these fisheries. Note: Seasonal or sector apportionments may not total precisely due to rounding.

Classification recent fisheries data in a timely fashion expedient manner and in accordance NMFS issues this action pursuant to and would allow for harvests that with the regulatory schedule. Under section 305(d) of the Magnuson-Stevens exceed the appropriate allocations for § 679.25(c)(2), interested persons are Act. This action is required by 50 CFR pollock, Atka mackerel, and Pacific cod invited to submit written comments on part 679, which was issued pursuant to in the BSAI based on the best scientific this action to the above address until section 304(b), and is exempt from information available. NMFS was January 6, 2021. review under Executive Order 12866. unable to publish a notice providing Authority: 16 U.S.C. 1801 et seq. Pursuant to 5 U.S.C. 553(b)(B), there time for public comment because the is good cause to waive prior notice and most recent, relevant data only became Dated: December 17, 2020. an opportunity for public comment on available as of December 12, 2020. Jennifer M. Wallace, this action, as notice and comment Without this inseason adjustment, Acting Director, Office of Sustainable would be impracticable and contrary to NMFS could not allow the fishery for Fisheries, National Marine Fisheries Service. the public interest, as it would prevent pollock, Atka mackerel, and Pacific cod [FR Doc. 2020–28190 Filed 12–21–20; 8:45 am] NMFS from responding to the most in the BSAI to be harvested in an BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 85, No. 246

Tuesday, December 22, 2020

This section of the FEDERAL REGISTER consider to be Confidential Business action please visit https://www.epa.gov/ contains notices to the public of the proposed Information (CBI) or other information coalash. issuance of rules and regulations. The whose disclosure is restricted by statute. SUPPLEMENTARY INFORMATION: purpose of these notices is to give interested Multimedia submissions (audio, video, persons an opportunity to participate in the etc.) must be accompanied by a written I. Public Participation rule making prior to the adoption of the final rules. comment. The written comment is A. Docket considered the official comment and EPA has established a docket for this should include discussion of all points action under Docket ID No. EPA–HQ– ENVIRONMENTAL PROTECTION you wish to make. EPA will generally OLEM–2020–0463. 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Publicly available docket materials are Utilities; Reconsideration of Beneficial Instructions: All submissions received available electronically at https:// Use Criteria and Piles; Notification of must include the Docket ID No. EPA– www.regulations.gov/ or in hard copy at Data Availability HQ–OLEM–2020–0463 for this the EPA Docket Center. The EPA Docket rulemaking. Comments received may be AGENCY: Environmental Protection Center hours of operation are 8:30 a.m.– posted without change to https:// Agency. 4:30 p.m., Monday through Friday www.regulations.gov/, including any ACTION: Proposed rule; notice of data (except Federal Holidays). The personal information provided. 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For further information and help inform the Agency’s comments via https:// updates on EPA Docket Center services, reconsideration of these two issues. The www.regulations.gov/ or email, as there please visit us online at https:// Agency is requesting comment only on may be a delay in processing mail and www.epa.gov/dockets. those two issues. EPA is not reopening faxes. Hand deliveries and couriers may The EPA continues to carefully and any other aspect of the proposal, the be received by scheduled appointment continuously monitor information from CCR regulations, or the underlying only. For further information on EPA the Centers for Disease Control and support documents that were previously Docket Center services and the current Prevention (CDC), local area health available for comment. status, please visit us online at https:// departments, and our Federal partners DATES: Comments must be received on www.epa.gov/dockets. so that we can respond rapidly as or before February 22, 2021. FOR FURTHER INFORMATION CONTACT: For conditions change regarding COVID–19. ADDRESSES: Submit your comments, questions concerning this document, identified by Docket ID No. EPA–HQ– contact Rita Chow, Office of Resource B. Written Comments OLEM–2020–0463, at http:// Conservation and Recovery, Resource Submit your comments, identified by www.regulations.gov. Follow the online Conservation and Sustainability Docket ID No. EPA–HQ–OLEM–2020– instructions for submitting comments. Division, Environmental Protection 0463 at https://www.regulations.gov/ Once submitted, comments cannot be Agency, 1200 Pennsylvania Avenue (our preferred method), or the other edited or removed from Regulations.gov. NW, Mail Code 5306–P, Washington DC methods identified in the ADDRESSES EPA may publish any comment received 20460; telephone number: (703) 308– section. Once submitted, comments to its public docket. Do not submit 6158; email address: Chow.Rita@ cannot be edited or removed from the electronically any information you epa.gov. For more information on this docket. EPA may publish any comment

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However, several of the public accordance with procedures set forth in uses the phrase ‘‘CCR accumulations’’ to comments EPA received on the August 2019 capture any and all such accumulations, proposed rule referred to data on the utility CCR 40 Code of Federal Regulations (CFR) compliance websites. part 2. including those with CCR destined for 2 During the development of the 2019 proposed beneficial use or disposal, and those rule, the Agency had not considered the compliance II. General Information that constitute disposal (such as a ‘‘CCR websites mandated by the 2015 CCR rule as a potential data and information source for EPA’s 1. Does this document apply to me? pile or pile’’ as defined in 40 CFR 257.53).1 In making a decision on the reconsideration of the provisions for CCR This document applies to the electric accumulations. However, several of the public comments EPA received on the August 2019 utilities and independent power 1 During the development of the 2019 proposed proposed rule referred to data on the utility CCR producers that fall within the North rule, the Agency had not considered the compliance compliance websites.

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information contained in the docket for Regulations (CFR). The 2015 CCR rule environmental groups, private citizens this document may not necessarily also established a beneficial use and states, EPA is continuing to reflect all potentially relevant definition to distinguish legitimate reconsider these issues by evaluating information available to support the beneficial use from disposal. The existing data and accepting additional Agency’s reconsideration of the two beneficial use definition is comprised of information. issues. However, the Agency’s intent is four criteria, with criterion 4 IV. What information has EPA received to ensure that the public has had a full establishing a requirement to perform an to date that is potentially relevant to and complete opportunity to comment environmental demonstration to address reconsidering the definition of on the information contained in the any potential risks associated with beneficial use and its provisions for docket for this document, which EPA unencapsulated uses of CCR that are in CCR accumulations destined for identified has the potential to be excess of 12,400 tons. See 80 FR 21351– beneficial use or disposal? considered by the Agency. Therefore, 52 (April 15, 2015). The 2015 CCR rule EPA is, in this document, accepting the also provided provisions for piles and EPA is considering whether to use the public’s comment on the validity and CCR that is currently being used following additional information suitability of using the information and beneficially off-site. For example, the sources in support of the data contained in the docket for this CCR rule provided a definition of ‘‘CCR reconsideration of the beneficial use document. Moreover, through this pile or pile,’’ as well as provided that definition and provisions for CCR document the Agency will accept CCR that is beneficially used off-site is accumulations destined for beneficial additional data and information from not a CCR pile. However, the CCR being use or disposal: Select 2019 proposed the public that may help inform the used off-site must be stored temporarily rule data and comments and reconsideration of the beneficial use and comply with all of the criteria in the information obtained in stakeholder definition and provisions for CCR beneficial use definition. See 80 FR meetings. The information that EPA is accumulations destined for beneficial 21356. The rule also provided that a noticing for comment can be found in use or disposal. CCR landfill as defined in 40 CFR EPA’s annotated bibliography titled, In sum, by this action, EPA is 257.53, includes CCR piles. ‘‘U.S. Environmental Protection Agency providing public notice of information On August 14, 2019, EPA proposed a Beneficial Use and Accumulations of the Agency received in response to the rule to address two provisions of the Coal Combustion Residuals Rulemaking, initial comment period for the August 2015 CCR rule remanded back to EPA Notice of Data Availability: Annotated 2019 proposed rule, providing notice of on August 21, 2018, by the U.S. Court Bibliography of Information Being information that EPA obtained after the of Appeals for the District of Columbia Noticed,’’ which is in the docket close of the initial comment period from Circuit: The 12,400-ton threshold in the supporting this document, EPA–HQ– stakeholder meetings, and accepting beneficial use definition for OLEM–2020–0463. Some documents additional data and information that the unencapsulated uses; and the listed or referenced in the annotated public has that may help inform the requirements for piles located on-site of bibliography are also in the docket, reconsideration of the beneficial use a utility and off-site but destined for while others can be accessed from definition and provisions for CCR beneficial use. With respect to the mass- websites at internet addresses provided accumulations destined for beneficial based numerical threshold, EPA in the bibliography. use or disposal. EPA is not reopening proposed to eliminate the 12,400-ton A. 2019 Proposed Rule Data and any existing regulations through this numerical threshold and replace it with Comments Received document. specific location-based criteria for CCR disposal units. In addition, EPA Several of the public comments EPA 3. What is the Agency’s authority for accepted comment on whether to retain received on the August 2019 proposed taking this action? a mass-based numerical threshold, and rule referred to data on the utility CCR EPA is publishing this document if so, what the appropriate threshold compliance websites. Other comments under the authority of sections 1008(a), should be; whether a combination of the referred to a court case related to a CCR 2002(a), 4004, and 4005(a) and (d) of the mass-based threshold and location- accumulation at the Midwest Solid Waste Disposal Act of 1970, as based criteria would be an appropriate Generation Utility, LLC (Powerton amended by the Resource Conservation trigger to require an environmental Station in Tazewell County, Illinois) as and Recovery Act of 1976 (RCRA), as demonstration for unencapsulated uses; well as a case study about CCR amended by the Hazardous and Solid and whether the environmental accumulations on-site at Duke Energy in Waste Amendments of 1984 (HSWA) demonstration required under the Noblesville, Indiana. and the Water Infrastructure beneficial use definition’s criterion 4 1. Comments on Using Publicly Improvements for the Nation (WIIN) Act should be conducted for all Accessible Data From the Utility CCR of 2016, 42 U.S.C. 6907(a), 6912(a), unencapsulated CCR uses. For piles, Compliance Websites on the 6944, and 6945(a) and (d). EPA proposed a single approach to Management of CCR Accumulations and consistently address the potential III. Background Potential Environmental Releases environmental and human health issues On April 17, 2015, in the CCR rule associated with piles, regardless of the The Agency has been and continues EPA finalized national regulations to location of the pile and whether the to be interested in obtaining information regulate the disposal of CCR as solid CCR is destined for disposal or about the management of CCR waste under subtitle D of the Resource beneficial use. For more information on accumulations and data about Conservation and Recovery Act (RCRA). the history of EPA’s CCR beneficial use environmental releases from CCR The CCR rule established national definition and requirements for piles accumulations. The management of CCR minimum criteria for existing and new on-site and off-site, please refer to the accumulations includes any practices CCR landfills, existing and new CCR August 2019 proposed rule and 2015 which provide for the staging and surface impoundments, and all lateral CCR rule. storage of CCR destined for beneficial expansions of these types of CCR units Responding to concerns raised about use or disposal, onsite or offsite, that are codified in Subpart D of Part the proposed rule during the public including the accumulation size, 257 of Title 40 of the Code of Federal comment period by industry, duration and recurrence; designs related

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to placement and mounding of CCR; and on the remanded issues. EPA expects Furthermore, to argue that practices related to dust control or this analysis may indicate the requirements are needed to prevent minimization of releases to soil, conditions likely to cause environmental releases from CCR groundwater and surface water. Data environmental releases and may aid the accumulations, Hoosier provided an about environmental releases from CCR Agency in identifying the measures/ example case study of unencapsulated accumulations of different size, controls/practices sufficient to protect CCR at a Duke Energy site in duration, recurrence and practices to human health and the environment. Noblesville, Indiana. According to control releases to soil, groundwater and EPA is taking comment on whether Hoosier, the presence of unencapsulated surface water may aid the Agency in the utility compliance websites should CCR in the same location results in identifying the measures sufficient to be used as a data source for information groundwater contamination and impacts protect human health and the and data pertaining to the management on private water wells regardless of the environment. EPA intends to review of CCR accumulations. EPA is also distance to the groundwater table. and use the information on the utility seeking comment on whether Specifically, the presence of compliance websites to obtain data on environmental release data attributable unencapsulated CCR from the start of the management of CCR accumulations to CCR accumulations at utility sites can the facility’s operation in the 1950s and instances of environmental releases be used to estimate environmental resulted in impacts despite the from the CCR accumulations. releases from CCR accumulations at groundwater table being more than 15 EPA has reviewed the documents intermediary (e.g., marketer and retailer) feet below the surface. posted on utility CCR compliance and beneficial use sites. EPA is also Similarly, Earthjustice provided websites linked from the Agency’s CCR requesting approaches (e.g., surveys) the information to illustrate that even when compliance web page (https:// public would consider appropriate to present for a short period of time, www.epa.gov/coalash/list-publicly- understand environmental releases from unencapsulated CCR has the potential to accessible-internet-sites-hosting- intermediary and beneficial use sites if result in environmental releases. compliance-data-and-information- the public finds the data from the utility Earthjustice referenced a court case required) to identify electric utilities compliance websites is not applicable. involving coal ash cinders deposited and independent power producers that EPA is also seeking comment on the directly upon the land 3 at the Midwest manage CCR accumulations. EPA’s Agency’s approach to use the Generation Utility, LLC (Powerton review focused on the following information on the utility compliance Station in Tazewell County) identified documents: websites to identify management of CCR 4 • Fugitive dust control plans; in a report prepared for Earthjustice by • Annual CCR landfill inspection accumulation practices that could be Mark Hutson at Geo-Hydro Inc. reports; part of CCR regulations to prevent a Specifically, the Illinois Pollution • CCR landfill run-on/run-off control reasonable probability of adverse effects Control Board found that the coal ash system reports; and on human health and the environment. cinders that were deposited directly • Annual groundwater monitoring Finally, EPA is requesting comment on upon the land and that were present for and corrective action reports (sometimes other approaches (e.g., surveys) to two to three months, contributed to power plant-wide, sometimes specific to collect data on characteristics of CCR exceedances of state groundwater individual CCR units at the facility). accumulations that are not publicly standards. available. Based on that review, EPA identified B. Stakeholder Meetings the presence of CCR accumulations at 2. Case Studies and Court Case Related several power plants. to CCR Accumulations and Fill Projects From the end of May 2020 to August EPA intends to confirm the presence 2020, EPA held ten stakeholder of CCR accumulations for staging or A few comments on the August 2019 meetings with the trade associations and storing CCR on power plant sites proposed rule referenced several fill their members, encompassing utilities, identified on the CCR utility websites, projects and cases of environmental agricultural, wallboard, cement and by contacting the state environmental releases caused by unencapsulated CCR. concrete beneficial uses; CCR marketers; agencies that correspond to facility In response to the August 2019 state environmental and transportation locations. Furthermore, EPA expects to proposal to change the beneficial use agencies; environmental organizations review the utility website documents for definition, the Hoosier Environmental and private citizens. EPA and information on the characteristics of Council (Hoosier) referenced several fill stakeholders discussed technical identified CCR accumulations, the projects that did not incorporate information and data on beneficial use protective measures taken to prevent or protections for groundwater and surface applications and the specific practices mitigate releases, and the data about water. Hoosier provided these examples facilities use to manage their CCR environmental releases attributable to to illustrate that lack of oversight and accumulations (e.g., the specific these CCR accumulations. More regulation of CCR beneficial use can practices facilities use to control CCR specifically, the Agency intends to result in CCR disposal being incorrectly releases). These discussions were review available information on the characterized as beneficial use, leading designed to inform the Agency’s characteristics of these accumulations, to environmental contamination. reconsideration of the beneficial use such as size, duration, recurrence and Among those examples, Hoosier definition and provisions for CCR design; protective measures, such as included a possible project that, while accumulations destined for beneficial dust suppression, compaction, use of not executed, could have resulted in use or disposal. EPA identified topics of liners and berms; and incidences of environmental issues had it gone interest which included: environmental releases. The Agency unchallenged by county officials and intends to use such information to nearby residents, because of its 3 See document, Illinois Pollution Control Board analyze the incidences of environmental proposed location. Another example Court Order for Midwest Generation Utility, dated releases from the CCR accumulations as that Hoosier referenced relates to the June 20, 2019, in the docket for this Notice. 4 extensive use of CCR for landscaping See document, Responses to EPA Solicitation for a function of the accumulation Comments Hutson Expert Report Phase II dated 10/ characteristics and protective measures and road embankments throughout the 14/2019, at https://beta.regulations.gov/document/ used, to inform the Agency’s next steps town of Pines, Indiana. EPA-HQ-OLEM-2019-0173-0197.

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• Various CCR beneficial use location of wallboard manufacturing the Agency is seeking comments, data applications, plants with utilities; the inventorying and information on the following: • CCR generation specifically for and tracking procedures for the transfer • What are the different types of CCR? beneficial use (e.g., wallboard-grade and use of wallboard-grade FGD gypsum • What are the environmental and flue-gas desulfurization (FGD) gypsum) in the intended manufacturing process; economic tradeoffs among the CCR and any associated specifications, the handling of CCR accumulations to beneficial use and its alternatives, e.g., • CCR accumulation management prevent the loss of valuable material; disposal? throughout the CCR distribution system, other ways of handling the wallboard- • What are the typical beneficial use • Applicable state beneficial use and grade FGD gypsum as a product rather applications for each type of CCR? storage provisions and regulations of than something that is intended to be • How much CCR is used per typical CCR, and discarded. beneficial use application? • Environmental and risk data, Lastly, EPA is seeking specific • What are the chemical and physical including documented environmental information on federal, state and local characteristics of the CCR that make it and public health impacts. program provisions and regulations suitable for beneficial use application? • V. What information is EPA seeking? related to CCR beneficial use What is the virgin material the CCR applications and provisions for CCR is replacing? As explained, EPA is today noticing accumulations, such as example state • What are the product specifications the data and information received from permits or other beneficial use and design standards the CCR must the 2019 proposed rule and the approvals. EPA is particularly interested meet? stakeholder discussions held from the in hearing from regulated entities that • What are examples of measures end of May 2020 to August 2020. The comply with the different regulations used to control releases for CCR Agency will accept additional data and and can therefore, provide the full destined for beneficial use? information that may help inform the picture of requirements with which they • For structural fill projects, what are reconsideration of the beneficial use comply. the site and location characteristics and definition and provisions for CCR the design and construction accumulations destined for beneficial A. Beneficial Uses of CCR requirements for CCR used in such use or disposal. EPA is reevaluating CCR beneficial projects? Specifically, EPA is today seeking uses that may be considered • What state and local policies/ information about how CCR is encapsulated beneficial use. In the 2015 regulations pertain to specific beneficially used, including any use of rule preamble, the Agency defined unencapsulated uses of CCR for particular measures to control encapsulated beneficial use as beneficial use? environmental releases that can help the applications that bind the CCR into a • How do state and local policies/ Agency distinguish among the different solid matrix that minimizes regulations distinguish beneficial use types of beneficial use applications (e.g., mobilization into the surrounding from disposal? structural fill, flowable fill, waste environment. Examples of encapsulated • What data, documented damage stabilization and solidification, uses include replacement for, or raw cases, or other information pertaining to agricultural applications, snow and ice material used in production of, beneficial use applications have become control, soil stabilization, fly ash used cementitious components in concrete; available since 2010? as a substitute for portland cement in and raw material in wallboard • What are the environmental and concrete, flue-gas desulfurization (FGD) production. See 80 FR at 21328. In economic tradeoffs among CCR gypsum in wallboard manufacture). EPA addition, the Agency provided examples beneficial use applications, e.g., is also seeking information on the of unencapsulated uses to include: agricultural use vs. roadway use? management of CCR accumulations at Flowable fill; structural fill; waste B. CCR Distribution System each point in its distribution system, stabilization/solidification; and use in from its generation at the utility to its agriculture as a soil amendment. See 80 EPA is seeking information on the destination, including management at FR at 21353. The Agency is considering generation and management of CCR at CCR retailers, distributors/marketers, revising the designation of flowable fill each point in its distribution system, beneficial use facilities/sites, and and waste stabilization from from the utility, to any intermediaries or landfills. EPA is seeking information unencapsulated to encapsulated uses final destinations, such as CCR retailers, about the use of controls to prevent and and therefore, redefining the scope of distributors/marketers, beneficial use minimize CCR releases from CCR beneficial uses that are subject to facilities, sites, or landfills. EPA is accumulations and environmental data compliance with criterion 4 of the considering developing a best practice for CCR accumulations. beneficial use definition which applies guide on the appropriate environmental As part of this request, EPA is to unencapsulated uses. EPA is further controls that should be utilized for specifically interested in site-specific considering whether criterion 4 should various storage and staging situations. information that pertains to the apply only to a subset of remaining EPA is also specifically interested in practices used for the handling of unencapsulated uses. For example, as site-specific information and data wallboard-grade FGD gypsum. As appropriate, certain uses could demonstrating how utilities and explained in the 2015 rule preamble, potentially be excluded if there are beneficial use facilities manage some FGD gypsum has never been sufficient regulations at the federal, wallboard-grade FGD gypsum as a discarded and is treated as a valuable state, and local level that provide for valuable product. The Agency is product throughout its entire lifecycle; engineering controls of the beneficial considering whether to incorporate into when managed in this way, it is not a use application. Such beneficial uses the regulations a specific exemption for waste that would be regulated under may include agricultural applications. wallboard-grade FGD gypsum that has part 257. See 80 FR 21348. EPA is Other options the Agency is considering not been discarded and is continually interested in obtaining information on: include developing guidance such as a managed as a valuable product from the The investment in special additional best practice guide for using CCR in fill, point of generation at the utility to the systems to generate wallboard-grade structural fill, or other unencapsulated manufacturing of the wallboard. EPA is FGD gypsum; the investment in co- uses. To help inform EPA’s next steps, also considering whether to develop

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additional guidance on the specific • What happens to deliveries rejected also considering whether, and which, indicators to demonstrate when by beneficial users and what entity is particular beneficial use applications wallboard-grade FGD gypsum is not responsible for them? are sufficiently regulated at the federal, discarded and therefore not subject to • What are the types of units used for state or local levels (e.g., by the United regulation under the 2015 rule. the staging of CCR by intermediaries States Department of Agriculture or To help inform the Agency’s and beneficial users? state departments of transportation), • reconsideration of the beneficial use What are the design and such that additional federal regulation definition and provisions for CCR engineering standards for CCR under RCRA would not be required for accumulations, EPA is seeking the accumulations at intermediaries and these applications. Furthermore, the beneficial users, e.g., shape, slope, following information pertaining to the Agency is seeking detailed information generation and on-site management of circumference, height? on whether the management of CCR CCR accumulations at the electric • What controls are utilized by accumulations is uniformly and utility: intermediaries and beneficial users to • How is the CCR generated and manage environmental releases from sufficiently regulated at all points in the processed if it is destined for beneficial CCR accumulations? How long does the CCR distribution system, by existing use? CCR accumulation stay at the federal, state and local regulations (e.g., • What are the specifications to intermediaries before it is transferred for Clean Air Act, Clean Water Act, etc.), which the CCR is processed? beneficial use? such that additional provisions under • What type of testing is performed • How is CCR accumulated at RCRA would not be required. on the CCR (e.g., to meet the required beneficial use sites, e.g., continuously Specifically, the Agency is seeking specifications) and which entity replenished; first spent and then detailed and specific information about performs the testing? resupplied; etc.? facilities and sites to which existing • What material safety data sheets are • How long does the CCR regulations apply (e.g., cement and available for CCR destined for beneficial accumulation stay at the beneficial use concrete manufacturing plants, use? site before it gets beneficially used? wallboard manufacturing plants, • • What are the design and What state and local policies/ agricultural retail facilities and farms, or engineering standards for CCR regulations pertain to one-time short- utilities). The Agency is also seeking accumulations, e.g., shape, slope, term storage at intermediaries and specific examples of these regulations circumference, height? beneficial use sites? and requirements (e.g., leachate • What controls are utilized to • What state and local policies/ controls, surface water runoff sampling, manage environmental releases from on- regulations pertain to indefinite area groundwater monitoring in the site CCR accumulations? recurring storage at intermediaries and • How is CCR destined for beneficial beneficial use sites? form of permits, beneficial use use staged compared to CCR destined • What environmental monitoring determinations, or other documentation for disposal? data are available for CCR of compliance). • How is CCR destined for beneficial accumulations at intermediaries and VI. What are the next steps EPA will use accumulated, e.g., continuously beneficial use sites? take? replenished; first spent and then • If in the past there have been resupplied; etc.? environmental releases that exceeded EPA intends to carefully review all • How long does a CCR accumulation state limits at intermediaries and the comments and information received stay on the utility property before it is beneficial use sites, what corrective in response to this document specific to disposed of or transferred for beneficial actions were implemented? the beneficial use definition and use? • What material safety data sheets are • provisions for CCR accumulations What is the average size of a CCR available for CCR being used in the destined for beneficial use or disposal. accumulation before it is disposed of or manufacturing process and the products EPA may also consider any previously transferred for beneficial use? incorporating it? collected and assembled information • Which entity is responsible for the • What are the inventorying and transfer of CCR, either for beneficial use tracking procedures for the transfer and pertaining to the two specific issues or disposal? use of CCR in the intended addressed in this NODA. In determining • What additional environmental manufacturing process or for beneficial how to proceed with reconsidering the monitoring data are available for on-site use? beneficial use definition and provisions CCR accumulations? • What additional business or for CCR accumulations destined for • If in the past there have been on-site financial information is available to beneficial use or disposal, EPA may environmental releases that exceeded show that the CCR is a valuable consider any relevant information and state limits, what corrective actions commodity for the intended data available to the Agency. Future were implemented? manufacturing process or beneficial action with respect to the Agency’s The Agency is also interested in use? reconsideration of the 2019 proposed information pertaining to the off-site rule on the beneficial use definition and C. Applicable and Relevant Federal, management of CCR, such as at CCR provisions for CCR accumulations distribution/marketer centers, beneficial State, and Local Programs and Provisions destined for beneficial use or disposal use construction projects, agricultural will be made through notice-and- retail facilities; wallboard, cement, and The Agency is reviewing federal, state comment rulemaking. concrete manufacturing sites; and other and local requirements and provisions beneficial use sites. Specifically, the for CCR beneficial use applications and List of Subjects in 40 CFR Part 257 Agency is seeking information on: CCR accumulations to consider whether • What additional testing is those standards could inform the Environmental protection, Coal performed by intermediaries or Agency’s reconsideration of the combustion products, Coal combustion beneficial users on the CCR to ensure it beneficial use definition and provisions residuals, Coal combustion waste, meets the required specifications? for CCR accumulations. The Agency is

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Beneficial use, Disposal, Hazardous or [email protected]; Amanda K. commuter rail passenger transportation waste, Landfill, Surface impoundment. Emo, Ph.D., Fatigue Program Manager, to develop and implement a safety risk at 202–281–0695 or amanda.emo@ reduction program to improve the safety Peter Wright, dot.gov; or Colleen A. Brennan, Deputy of their operations. The section further Assistant Administrator, Office of Land and Assistant Chief Counsel, at 202–493– requires a railroad’s safety risk Emergency Management. 6028 or [email protected]. reduction program to include a ‘‘fatigue [FR Doc. 2020–27525 Filed 12–21–20; 8:45 am] SUPPLEMENTARY INFORMATION: management plan’’ meeting certain BILLING CODE 6560–50–P requirements. Table of Contents for Supplementary This proposed rule, if finalized, Information would fulfill RSIA’s mandate for DEPARTMENT OF TRANSPORTATION I. Introduction and Executive Summary railroads to include fatigue management A. Purpose of Rulemaking plans in their safety risk reduction Federal Railroad Administration B. Summary of Costs and Benefits programs by requiring railroads to II. Rulemaking Authority and Background develop and implement Fatigue Risk 49 CFR Parts 270 and 271 A. RSIA Management Programs (FRMPs).2 As 1. Mandate for Rulemaking on Railroad proposed, a railroad would implement [Docket No. FRA–2015–0122, Notice No. 1] Safety Risk Reduction Programs its FRMP through an FRMP plan. RIN 2130–AC54 2. Mandate for Rulemaking on Fatigue Management Plans Under this proposed rule, consistent with the mandate of Section 20156, an Fatigue Risk Management Programs 3. Authority for Rulemaking on FRMP is a comprehensive, system- for Certain Passenger and Freight Information Protection oriented approach to safety in which a Railroads B. Fatigue and Fatigue Risk Management Plans railroad determines its fatigue risk by AGENCY: Federal Railroad III. Railroad Safety Advisory Committee identifying and analyzing applicable Administration (FRA), Department of Process hazards and takes action to mitigate, if A. Fatigue Management Plans Working not eliminate, that fatigue risk.3 As Transportation (DOT). Group ACTION: Notice of proposed rulemaking B. Task Forces proposed, a railroad would be required (NPRM). IV. FRMP Considerations to prepare a written FRMP plan and A. General Overview submit it to FRA for review and SUMMARY: Pursuant to the Rail Safety B. Roles and Responsibilities approval. A railroad’s written FRMP Improvement Act of 2008, FRA C. Components of an FRMP plan would become part of its existing proposes to issue regulations requiring 1. Identifying Safety Hazards safety risk reduction program plan. A certain railroads to develop and 2. Assessing Risks Associated With railroad would also be required to implement a Fatigue Risk Management Identified Hazards implement its FRA-approved FRMP Program, as one component of the 3. Prioritizing Risks and Implementing Mitigation plan, conduct an internal annual railroads’ larger railroad safety risk 4. Summary of the Work of the FRMP assessment of its FRMP, and consistent reduction programs. Working Group’s Task Forces with Section 20156’s mandate, update DATES: Written comments must be 5. Tracking Performance its FRMP plan periodically. As part of received by February 22, 2021. V. Section-by-Section Analysis a railroad safety risk reduction program, Comments received after that date will VI. Regulatory Impact and Notices a railroad’s FRMP would also be subject be considered to the extent practicable A. Executive Orders 12866 and DOT to assessments by FRA. without incurring additional expense or Regulatory Policies and Procedures B. Regulatory Flexibility Act and Executive B. Summary of Costs and Benefits delay. Order 13272; Initial Regulatory FRA estimated the costs and benefits ADDRESSES: Comments related to Docket Flexibility Analysis No. FRA–2015–0122 may be submitted C. Federalism of this proposed rule using discount by going to http://www.regulations.gov D. International Trade Impact Assessment rates of 3 and 7 percent over a ten-year and follow the online instructions for E. Paperwork Reduction Act time horizon. FRA presents monetized submitting comments. F. Environmental Assessment costs and benefits where possible and Instructions: All submissions must G. Executive Order 12898 (Environmental discusses those non-quantifiable Justice) elements qualitatively where data is include the agency name, docket name H. Unfunded Mandates Reform Act of 1995 and docket number or Regulatory I. Energy Impact 2 Section 20156 uses the term ‘‘fatigue Identification Number (RIN) for this J. Privacy Act Statement management plans’’ so sections of this preamble rulemaking (2130–AC54). Note that all discussing the statutory requirements likewise use comments received will be posted I. Introduction and Executive Summary this term, as do the sections discussing the Railroad without change to http:// Safety Advisory Committee task statement on A. Purpose of Rulemaking fatigue and Fatigue Working Group. However, www.regulations.gov, including any because section 20156 requires fatigue to be personal information provided. Please This proposed rule is part of FRA’s efforts to improve rail safety continually addressed as part of a railroad’s safety risk see the Privacy Act heading in the reduction program, for consistency with the and to satisfy the statutory mandate of SUPPLEMENTARY INFORMATION section of terminology used in FRA’s final rules governing Section 103 of the Rail Safety those programs (81 FR 53849 (Aug. 12, 2016) and this document for Privacy Act 1 85 FR 9262 (Feb. 18, 2020)), elsewhere throughout information on any submitted Improvement Act of 2008 (RSIA). That section, codified at 49 U.S.C. 20156, this proposed rule, FRA uses the terms ‘‘fatigue risk comments or materials. management program’’ (FRMP) and ‘‘FRMP plan.’’ Docket: For access to the docket to requires Class I railroads; railroad 3 Risk is defined as a combination of the read background documents or carriers with inadequate safety probability of an adverse event occurring and the performance (ISP), as determined by the potential severity of that adverse event. Fatigue comments received, go to http:// increases the likelihood of certain negative events www.regulations.gov. Secretary; and railroad carriers that provide intercity rail passenger or occurring. Therefore, reducing fatigue helps reduce FOR FURTHER INFORMATION CONTACT: fatigue-related risks. See United States Department of Transportation, Partnering in Safety: Managing Miriam Kloeppel, Staff Director, Audit 1 Section 103, Public Law 110–432, Division A, Fatigue: A Significant Problem Affecting Safety, Management Division, at 202–493–6224 122 Stat. 4848 et seq. Security, and Productivity, 1999.

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lacking. Details on the estimated costs subject to this proposed regulation. FRA passenger and commuter railroads, and and benefits of this proposed rule can be was unable to quantify costs or benefits the 50 ISP railroads subject to this found in the rule’s economic analysis, for passenger railroads and discusses proposed regulation. The proposed which has been included in the docket. the implementation of the proposed regulation will also impose a new In preparing the economic analysis, regulation qualitatively within the economic cost on the agency over the FRA estimated that the total costs and Regulatory Impact Analysis which has 10-year period, to review and audit the benefits over 10 years for the been placed into the docket. FRMPs. implementation of an FRMP and the FRA also estimated the total costs Please see Table I.B for the total costs fatigue training mitigation for Class I over 10 years to develop and monitor and benefits associated with the railroads and the 50 ISP railroads FRMP plans for Class I railroads, proposed rule.

TABLE I.B—10-YEAR COSTS AND BENEFITS—TRAINING ONLY MITIGATION

Present value Present value Annualized at Annualized at Calculation aid Costs 7% 3% 7% 3%

A ...... Training Only (low)...... $2.02 $2.04 $0.29 $0.24 B ...... Training Only (high) ...... 4.13 4.18 0.59 0.49 C ...... FRMP Plan Creation ...... 0.89 1.04 0.13 0.12 D ...... Government Costs ...... 2.03 2.59 0.29 0.30 A + C + D ...... Total Cost (low) ...... 4.94 5.68 0.70 0.67 B + C + D ...... Total Cost (high) ...... 7.05 7.81 1.00 0.92 A + C ...... Total Cost w/o Government Costs (low) ...... 2.91 3.08 0.41 0.36 B + C ...... Total Cost w/o Government Costs (high) ...... 5.01 5.22 0.71 0.61 Benefits ...... Training Only (low) ...... 5.41 6.33 0.77 0.74 Training Only (high) ...... 21.65 25.34 3.08 2.97

II. Rulemaking Authority and and (3) railroad carriers that provide processes and procedures that can help Background intercity rail passenger or commuter rail it plan, organize, direct, and control its passenger transportation. This preamble A. RSIA business activities in a way that refers to the railroads that would be enhances safety and promotes 1. Mandate for Rulemaking on Railroad subject to this proposed rule as compliance with regulatory standards. Safety Risk Reduction Programs ‘‘covered railroads.’’ As such, risk reduction and system The RSIA requires the Secretary of To implement the requirements of safety programs are a form of ‘‘safety Transportation (Secretary) to issue Section 20156, FRA published the management system,’’ which is a term regulations requiring certain railroads to System Safety Program (SSP) final rule that generally refers to a comprehensive, develop and implement a ‘‘railroad implementing the railroad safety risk systematic approach to managing safety safety risk reduction program.’’ 4 Under reduction program mandate for throughout an organization. RSIA, as part of their railroad safety risk passenger railroads on August 12, 2016.8 On February 18, 2020, FRA Safety management systems were reduction programs, railroads must developed to ensure high safety analyze the risks associated with aspects published the Risk Reduction Program (RRP) final rule implementing the performance in various industries, of their operations that affect railroad including aviation, passenger railroad, safety and based on that risk analysis, mandate for Class I freight and ISP 9 nuclear, and other industries with the railroads must, through their railroad railroads. potential for catastrophic accidents. For safety risk reduction programs, mitigate Both the SSP and RRP rules allow a railroad to tailor its program to its risks to railroad safety.5 Among other ease of understanding, the elements of unique operating characteristics.10 requirements, the RSIA requires All a safety management system are railroads to consult with ‘‘directly railroads that must develop either an typically grouped into larger descriptive affected employees’’ and their labor RRP or an SSP would also have to categories. These descriptive categories organizations on the content of their develop an FRMP as a component of the include: (1) An organization-wide safety safety risk reduction programs, RRP or the SSP. policy; (2) formal methods for Both RRPs and SSPs reflect including the fatigue management plan identifying hazards, and for prioritizing comprehensive, system-oriented component.6 and mitigating risks associated with approaches to improving safety, by The Secretary delegated responsibility those hazards; (3) data collection, data which an organization formally for carrying out the mandate of Section analysis, and evaluation processes to identifies and analyzes applicable 20156 to the FRA Administrator.7 determine the effectiveness of hazards and takes action to mitigate, if Section 20156(a)(1) mandates that mitigation strategies and to identify not eliminate, the risks associated with each of the following types of railroads emerging hazards; and (4) outreach, those hazards. RRPs and SSPs provide would have to comply with this a railroad with a framework for education, and promotion of an proposed regulation: (1) Class I improved safety culture within the railroads; (2) railroad carriers with ISP; 8 81 FR 53849. organization. 9 85 FR 9262. The RRP final rule also defines Effective implementation of all the 4 Public Law 110–432, Div. A, sec. 103 (49 U.S.C. ‘‘railroad carriers with inadequate safety elements of an RRP or SSP, including 20156). performance’’ to whom this proposed rule would 5 Sec. 20156(d)(1). apply. 49 CFR 271.13, 85 FR at 9316–9317. the FRMP this proposed rule would 6 49 U.S.C. 20156(f) and (g)(1). 10 SSP Final Rule at 81 FR 53849, August 12, 7 49 CFR 1.89, 77 FR 49965 (August 17, 2012); see 2016, and RRP Final Rule at 85 FR 9262, February also 49 U.S.C. 103(g). 18, 2020.

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require, will foster continuous safety alertness strategies, such as policies on short-term and working memory improvement.11 napping, to address acute drowsiness function which may impair and fatigue while an employee is on performance, increase error, and 2. Mandate for Rulemaking on Fatigue duty; (7) opportunities to obtain restful increase accident risk. Management Plans sleep at lodging facilities, including The Federal Government requires Sections 20156(d)(2) and (f) of the employee sleeping quarters provided by railroads to manage their employees’ RSIA mandate that as part of a railroad’s the railroad carrier; (8) the increase of fatigue associated with railroad safety risk reduction program, a railroad the number of consecutive hours of off- operations through prescriptive hours of must develop and implement a fatigue duty rest, during which an employee service (HOS) limitations and rest management plan ‘‘designed to reduce receives no communication from the requirements. See 49 U.S.C. 21103, the fatigue experienced by safety-related employing railroad carrier or its 21104, and 21105 and regulations at 49 railroad employees and to reduce the managers, supervisors, officers, or CFR part 228, subpart F (implementing likelihood of accidents, incidents, agents; (9) avoidance of abrupt changes 49 U.S.C. 21102 and 21109). HOS injuries, and fatalities caused by in rest cycles for employees, and (10) limitations are generally based on the fatigue.’’ 12 The statute requires additional elements that the Secretary assumption that fatigue simply railroads to update their fatigue considers appropriate. increases as time passes; therefore, the management plans at least once every longer the time on task, the greater the two years, with each update subject to 3. Authority for Rulemaking on risk for fatigue. However, this approach FRA review and approval.13 Section Information Protection does not account for factors such as 20156(f)(2) also requires each railroad’s Section 109 of the RSIA specifies that sleep loss, amount of sleep, circadian fatigue management plan to take into subject to specific exceptions, certain rhythms, sleep quality (which may be account the varying circumstances of railroad safety risk reduction records impacted by environmental factors or operations on different parts of its obtained by the Secretary are exempt sleeping accommodations), and even the system, and to prescribe appropriate from the public disclosure requirements fatigue countermeasures to address the of the Freedom of Information Act effects of the type of task being varying circumstances. (FOIA).14 Both the SSP and RRP final performed on the resulting level of Finally, Section 20156(f)(3) requires a rules implement these authorized fatigue. Furthermore, the HOS covered railroad to consider the need to information protections. Further, FRA limitations and rest requirements apply include in its fatigue management plan has concluded section 20118 is a FOIA only to individuals who perform certain elements addressing each of the Exemption 3 statute and, therefore, types of work and do not cover all following items, as applicable: (1) would exempt, as part of a railroad’s railroad employees (e.g., ordinarily, not Employee education and training on the safety risk reduction program, FRMP maintenance-of-way employees or physiological and human factors that records in FRA’s possession from carmen). Laws and regulations affect fatigue, as well as strategies to mandatory disclosure under FOIA following this model, therefore, may reduce or mitigate the effects of fatigue, reduce, but cannot eliminate, the (unless one of two statutory exceptions 16 based on the most current scientific and apply).15 conditions that contribute to fatigue. medical research and literature; (2) An FRMP, on the other hand, is opportunities for identification, B. Fatigue and Fatigue Risk intended to be a systematic program to diagnosis, and treatment of any medical Management Plans address fatigue in a dynamic manner. condition that may affect alertness or Humans have an approximately 24- An FRMP is a form of a safety fatigue, including sleep disorders; (3) hour sleep-wake cycle known as a management system. Like the other effects on employee fatigue of an ‘‘circadian rhythm.’’ Rapid changes in elements of an RRP and an SSP, an employee’s short-term or sustained the circadian pattern of sleep and FRMP implements organizational response to emergency situations, such wakefulness disrupt many physiological policies, processes, and procedures to as derailments and natural disasters, or functions such as hormone releases, reduce safety risk in a railroad’s engagement in other intensive working digestion, and temperature regulation. operations. An FRMP is a data-driven conditions; (4) scheduling practices for Such disruptions may also impair and scientifically-based process that employees, including innovative human performance, and may cause a allows for periodic review and scheduling practices, on-duty call general feeling of debility until management of safety risks associated practices, work and rest cycles, realignment is achieved. For instance, with fatigue-related error(s). Like other increased consecutive days off for the experience of jet lag is comparable safety management systems, an FRMP employees, changes in shift patterns, to the experience of working schedules applies the risk management process to appropriate scheduling practices for that vary among different duty shifts, identify fatigue risks through the use of varying types of work, and other aspects and similar disruptions in human data-established, scientific principles. of employee scheduling that would performance occur. Research has shown An FRMP includes collecting and reduce employee fatigue and cumulative that fatigue is a multivariate condition, analyzing fatigue-related safety data and sleep loss; (5) Methods to minimize being either directly or secondarily implementing corrective actions— accidents and incidents that occur as a affected by physiological and always encouraging continuous result of working at times when environmental variables such as sleep improvement. This proposed rule would scientific and medical research have loss, workload, stress, monotony, require railroads to develop FRMPs that shown increased fatigue disrupts workplace ergonomics, age, health, are consistent with these general employees’ circadian rhythm; (6) medications, noise, and circadian principles. disruption. Symptoms of fatigue 11 For a more detailed discussion of safety include, but are not limited to, falling 16 Thomas, G., Raslear, T., & Kuehn, G. (1997), management systems and FRA risk reduction asleep, increased reaction time, loss of The effects of work schedule on train handling programs, see FRA’s final RRP and SSP rules. 85 FR attentional capacity, and decline of performance and sleep of locomotive engineers: A 9265 (RRP final rule) and 81 FR 53853–54 (SSP simulator study, Report No. DOT/FRA/ORD–97– final rule). 09), Washington, DC: Federal Railroad 12 Sec. 20156(f)(1). 14 49 U.S.C. 20118. Administration; available at: http:// 13 Id. 15 80 FR at 10957–10958. www.fra.dot.gov/eLib/details/L04245.

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An effective FRMP implements included physicians, human factors language specifically addressing the processes and procedures for measuring, psychologists, railroad schedulers, and predictability of work schedules. modeling, managing, mitigating, and other representatives of railroad However, the RSIA does require reassessing fatigue risk in a specific management and labor, as well as FRA railroads to consider scheduling operational setting. The primary employees. practices, of which predictability is one stakeholders—the main persons with The Working Group formed three factor. There is significant discussion of the authority and/or interest to improve Task Forces to address particular predictability throughout this conditions to reduce fatigue—would aspects of the RSIA mandate in more document, particularly when describing implement FRMP processes. In the case detail: (1) The Education and Training the Task Force discussions and the of this specific rulemaking, that Task Force; (2) the Scheduling Task complex issues addressed in the Task stakeholder group would include Force; and (3) the Infrastructure and Force documents that will inform representation from management and Environment Task Force. The Task railroads’ analysis of fatigue risks and labor (union representation, if Forces met multiple times throughout their efforts to mitigate the identified applicable) and may also include 2012 and 2013 and the Working Group fatigue risks in consultation with scientific consultants. itself met eight times during the same employees and labor organizations. By combining schedule assessment, period. However, the proposed rule requires operational data collection, continuous After initially reaching consensus on railroads to consider several factors, and systematic analysis, and both draft rule text in June 2013, the Working including work schedule predictability, proactive and reactive fatigue mitigation Group did not reach consensus as to but does not require any particular techniques, guided by information how its recommendations should be factor to be analyzed. provided by scientific studies of fatigue, implemented. The Task Forces had The NPRM also does not propose to an FRMP offers a way to conduct developed a multitude of documents, include the Task Force documents as railroad operations more safely by which Labor representatives on the appendices to this proposed rule. As offering a global, comprehensive, and Working Group wanted published as FRA previously explained to the specific approach that complements appendices to the regulation. Railroad members of the Working Group, many statutory or regulatory HOS limitations. management members of the Working of these documents are written An FRMP would provide an interactive Group, on the other hand, asserted that informally, for the use of railroads and and collaborative approach to the documents should not be published labor in developing FRMP plans. The improving operational performance and as appendices to the regulation, but documents are best practices generated safety levels on a case-by-case basis. instead recommended that the by the Working Group, but are not Therefore, an FRMP would permit a documents be made available on the specifically FRA guidance and, railroad to adapt policies, procedures, FRA website and in the rulemaking therefore, should not be in an appendix and practices to the specific conditions docket for all parties to use in the to an FRA regulation. In addition, the that create fatigue in a particular required consultation process as part of content of the Task Force documents is railroad setting. A railroad could tailor developing railroads’ FRMPs. As a subject to change based on advances in its FRMP to unique operational result, in late 2013, FRA withdrew the fatigue science, changes in railroad demands and focus on techniques for task from the RSAC, and as the agency operations, and experience with FRA’s mitigating risk caused by fatigue that are worked to implement other aspects of SSP and RRP rules and the development practical within the specific operational the safety risk reduction program and implementation of FRMPs and environment. This flexibility would also mandate of the RSIA (i.e., the RRP and FRMP plans. The Task Force documents allow a railroad to alter its FRMP based SSP rules), the Agency began should be easy to update as necessary so on changing needs, new research, data developing a rule specifically to address that they are most beneficial to those from an existing FRMP, comments from the RSIA’s mandate that fatigue using them. If they were published as labor and management, and established management plans be included as part appendices to the regulation, changing best practices. of railroads’ safety risk-reduction them would require the cumbersome programs. process of publishing them in the III. Railroad Safety Advisory Although the RSAC did not make a Federal Register, and the industry Committee Process consensus recommendation to FRA would be left with outdated or less In December 2011, FRA asked the related to fatigue, FRA believes that useful documents until revisions could Railroad Safety Advisory Committee information developed and documented be completed. For the convenience of (RSAC) to accept a task to address the during the RSAC process is informative readers, however, the full text of each of fatigue management plan mandate of the and will be very useful to railroads these documents can be found in the RSIA.17 The RSAC voted to accept the required to develop FRMP plans. FRA docket for this rulemaking. task and on December 8, 2011, the made minor amendments to the June RSAC formed the Fatigue Management 2013 draft rule text to clarify it and B. Task Forces Plans Working Group (Working Group). make it more consistent with similar As noted above, paragraph (f)(3) of Members of the Working Group rule text in the SSP and RRP rules. Section 20156 requires railroads to However, the substance of this proposed consider including 10 different elements 17 Railroad Safety Advisory Committee Task rule text is the same as the draft rule text in their fatigue management plans. Statement: Fatigue Management Plans, Task No.: the Working Group voted to approve. The Working Group assigned the 11–03, Dec. 8, 2011. The Task Statement read as Accordingly, the proposals in this Education and Training Task Force to follows: NPRM reflect FRA’s consideration of the address section 20156(f)(3) Review the mandates and objectives of the [RSIA] related to the development of Fatigue Management Working Group’s recommended rule subparagraphs (A), (B), (E), and (F), Plans, determine how medical conditions that affect text and the documents developed by specifically: alertness and fatigue will be incorporated into each of the three Task Forces. Those • Employee education and training Fatigue Management Plans, review available data RSAC-developed documents are on the physiological and human factors on existing alertness strategies, consider the role of included in the rulemaking docket. that affect fatigue; innovative scheduling practices in the reduction of • employee fatigue, and review the existing data on The RSIA does not mandate, and this Medical and scientific research- fatigue countermeasures. NPRM does not propose to include, based fatigue mitigation strategies;

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• Opportunities for identification, and suggestions contained in this Finally, the proposed rule contains no diagnosis, and treatment of any medical section are not meant to bind the public express requirements on information condition that may affect alertness or in any way, and is intended only to protection or consultation, because the fatigue, including sleep disorders; provide clarity to the public regarding information protection and consultation • Methods to minimize accidents and this proposal and information to aid in requirements in the RRP and SSP rules incidents during circadian low periods; compliance if the proposal is finalized. would apply to the FRMP, the FRMP and plan, and their related documents, just A. General Overview • Alertness strategies. as those requirements would apply to The Task Force produced a document This proposed rule would require similar documents on other aspects of outlining existing railroad fatigue each covered railroad to establish and the RRP or SSP. As required by the educational resources; a document periodically update an FRMP plan, RSIA, fatigue management plans are outlining potential fatigue training which explains the railroad’s method of required elements of a railroad’s topics; fatigue education dissemination analysis of fatigue risks and the statutorily-mandated railroad safety risk and evaluation strategies; and a processes for implementing the FRMP. reduction program. Therefore, the document outlining fatigue FRA would review and approve the statutory requirements on information countermeasures. FRMP plan. FRA proposes that protection and consultation, The Working Group assigned the requirements for the filing, approval, implemented in the SSP and RRP final Scheduling Task Force to address and amendment of the FRMP plan be rules, would also apply to the subparagraphs (D), (H), and (I) of the made the same as for other components documents required by this proposed required elements outlined in section of RRP or SSP plans so those rule to implement the required fatigue 20156(f)(3). requirements are not set forth in this component of each railroad’s RRP or The task statement specifically proposed rule. Instead, the proposed SSP. Regarding information protection, included: as with RRP and SSP, only information • rule text cites to the sections of the SSP Innovative scheduling practices; compiled or collected solely for • and RRP rules that contain those On duty call practices; 18 developing, implementing, or evaluating • procedures. Because railroads will Work and rest cycles; have submitted their SSP plans or RRP a railroad’s FRMP would be protected.19 • Increased consecutive days off; plans to FRA under part 270, subpart C, • Other aspects of employee B. Roles and Responsibilities or part 271, subpart D before this scheduling that would reduce employee proposed rule becomes final, railroads fatigue and cumulative sleep loss; Consistent with the program would need to amend their SSP plan or 20 • The increase of the number of requirements of an RRP or SSP, an RRP plan to include an FRMP plan. consecutive hours of off-duty rest; and FRMP is an ongoing program that • Avoidance of abrupt changes in rest Thus, a railroad would follow the supports continuous safety cycles for employees. procedures in § 270.201(c) or 271.303 to improvement, and requires systematic The Working Group assigned the amend its SSP plan or RRP plan. evaluation and management of risks. An Infrastructure and Environment Task As part of their FRMP, covered FRMP is more than a document; it is a Force to address subparagraphs (C) and railroads would be required to identify living program that is implemented by (G) of section 20156(f)(3) including: fatigue-related safety hazards, to assess members of the organization who • Effects on employee fatigue of an the risks associated with those hazards, regularly meet to review data on fatigue employee’s short term or sustained and to prioritize those risks for indicators, analyze contributing factors response to emergency situations; mitigation. These railroads would be to fatigue, take necessary actions • Opportunities to obtain restful sleep required to consider certain categories (reactive and proactive) to mitigate at lodging facilities; and of risk as part of the FRMP, and to fatigue, objectively audit the • Effects of environmental conditions consider the development and effectiveness of the system, and take (e.g., temperature, vibrations, etc.) on implementation of policies and corrective action continuously to employee fatigue. practices to reduce risks, related improve the system. Consistent with The Task Force created documents on specifically to the items identified in the comments made at the Working Group emergency work, lodging facilities, and RSIA as items railroads are required to meetings, FRA expects most railroads dispute resolution. consider. will form a dedicated fatigue management committee to implement IV. FRMP Considerations FRA proposes that railroads be required to adopt and implement their the program. The committee should This proposed rule, if finalized, will FRMP through an FRMP plan describing include representatives of all fulfill the requirement of paragraph (d) the railroads’ processes for conducting departments and groups, including of Section 20156 that a covered their fatigue-risk analysis, including the labor representatives as appropriate, railroad’s railroad safety risk reduction processes for the identification of that have a role in reporting, managing, program include a fatigue management fatigue-related railroad safety hazards and mitigating fatigue. plan. This rule would amend both Parts and resulting risks, processes for the SSPs and RRPs require outreach to 270 and 271, adding a subpart to both development and implementation of employees so that they can understand parts requiring railroads to develop and mitigation measures, processes for the why certain actions are taken, or why implement FRMPs. This section evaluation of the FRMP and its certain safety procedures are introduced provides a summary of potential effectiveness, and procedures for the methods and considerations for review and update of the FRMP plan. 19 For a detailed discussion of information developing and maintaining a FRMP. The FRMP plan would also describe protection, see the SSP final rule at 81 FR 53855– FRA welcomes comments on the processes, milestones, and timelines for 56 and 53878–82, and RRP final rule at 85 FR 9266– discussion in this section, including the implementation of the FRMP. 9272 and 9279–9282. For more information on the thoughts on how to develop and consultation requirements, see the SSP final rule at 81 FR 53856, 53882–87 and 49 CFR part 270 app. maintain an effective FRMP. Unless 18 49 CFR 271.301 Filing and approval, 271.303 B, and RRP NPRM at 85 FR 9266, 9299–9303. specifically identified as a statutory or Amendments, and 49 CFR 270.201 Filing and 20 49 CFR 271.101(a), 270.101, and regulatory requirement, the information approval. 270.103(p)(vii).

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or changed.21 As this relates to an effectiveness of each mitigation strategy identify a high probability of a specific FRMP, it means that all safety-related and reviewing and revising an FRMP error occurring during the hours when personnel need to understand the based on results. employees are highly susceptible to corporate policies that underlie the fatigue, engineering or procedural 1. Identifying Safety Hazards FRMP; these may include policies and safeguards could potentially be put in procedures that govern: Fatigue a. Examples of Methods of Identifying place to minimize or eliminate the reporting, fitness-for-duty, absence due Safety Hazards possibility of that error recurring. to fatigue, incident reporting, employee A risk-based hazard analysis 23 In addition to data-driven methods, privacy, and prohibitions on coercion to identifies operational processes, qualitative methods that are often perform duties while fatigued. procedures, or activities that increase founded on expert judgment can be very As provided in the RSIA, the three the likelihood of fatigue, and lays the effective at identifying fatigue hazards. main stakeholders in the FRMP are foundation for subsequent assessment Examples of qualitative hazard railroad management, railroad and mitigation of risks associated with identification methods include, but are employees (including nonprofit the fatigue hazards identified. Hazards not limited to, the following: employee labor organizations), and may be identified through quantitative, • Brainstorming may be useful for FRA. Each of these stakeholders plays data-driven methods; through identifying hazards in new or novel an important role in implementing an qualitative processes such as systems. Ideally, it involves all key FRMP successfully. Railroad discussions, interviews, and stakeholders, is relatively quick and management must develop, document, brainstorming; or through a combination easy, and can be applied to a wide range and implement an FRMP, tailored to the of both approaches. Identifying a hazard of systems. Because brainstorming is size of the railroad, in a collaborative does not guarantee that it will be commonly unstructured, it may not be environment with relevant stakeholders; selected for mitigation. comprehensive. The success of it must also then allocate the resources In general, data-driven methods brainstorming depends heavily on the required to implement any fatigue identify and record hazards through a expertise of the participants and may be countermeasures in a timely fashion. systematic process that allows for susceptible to the influence of group FRA notes that the RSIA, in multiple tracking and further analysis. These dynamics. places, specifically requires railroads to methods could use various types of • Checklists are inventories of known develop and implement elements of recorded observations, such as records hazards. They can be used by people their programs based on the latest of actual schedules, efficiency testing, who are not experts in the operation or scientific principles.22 FRA will review, accident/incident investigations, system being analyzed, to capture a and as appropriate, approve each company audits, employee surveys, wide range of existing knowledge and railroad’s FRMP plan, and evaluate to close-call or hazardous condition experience, and help ensure that ensure that the railroads are complying reports, and others. Simulations may common and obvious problems are not with their plans. also be used to identify potential discounted, minimized, or overlooked. These general roles and functions are hazards and to estimate the potential However, checklists may be less useful not an exhaustive description of the severity of outcomes. for unusual operations or systems, may Understanding the current conditions various actions each group could take inhibit expansive thinking, or may within a railroad is critical for a during the development and execution overlook hazards that have not been railroad’s ability to identify fatigue of the FRMP. previously or widely observed. hazards accurately. Important sources of • C. Components of an FRMP information include current schedules, Failure Modes and Effects Analysis (FMEA) is a reliability assessment As proposed, a railroad’s FRMP must train lineups, throughput, and operating practices. Employee reports of fatigue or technique built upon a detailed system consist of actions taken by the railroad description used to evaluate the ways in pursuant to formally documented fatigue-related errors and incidents, and information on the work schedules that which basic system processes, policies, processes, and procedures components, or subcomponents can fail intended to mitigate fatigue risk. It led up to them, would also be valuable. Likewise, employees may be able to to perform safely. FMEA considers all incorporates specific components that the potential ways a component could enable the following: (1) Identifying provide information regarding travel assignments and random duty reports. fail, the effects of these failures on the safety hazards associated with fatigue; system, possible causes of the failures, (2) assessing the risks associated with Comprehensive and objective accident, incident, and error analyses and how the failures might be mitigated. identified hazards; (3) prioritizing risks See Figure 1. FMEA is a systematic and for mitigation and implementing can also be conducted to determine when fatigue has been a potential rigorous evaluation approach that can mitigation strategies for those risks; and yield a detailed record of the hazard (4) tracking the performance and contributing factor. The identified fatigue-sensitive situations can then be identification process, and can be applied to a wide range of types of 21 49 CFR 271.107 and 270.103(i)(4). addressed to mitigate or to avoid them 22 49 U.S.C. 20156(f)(3)(A) and (E) specifically in the future. For example, if analyses systems. However, it primarily focuses require railroads to consider scientific and medical on single point-of-failure modes rather research, in determining whether to include certain 23 Although the RSIA uses the term ‘‘risk than combinations of failures, relies elements in their FRMP. The other elements of analysis,’’ FRA uses ‘‘risk-based hazard analysis’’ heavily upon individuals with detailed § 20156(f)(3) require railroads to consider various because it is more consistent with the terminology system knowledge, and can be both scientific concepts, such as medical conditions, used in the SSP and RRP rules, as defined in 49 cumulative fatigue, and circadian rhythms. CFR 270.5 and 49 CFR 271.5. time-consuming and expensive.

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• Structured What-If Technique can be included in the analysis. a combination of two or more methods (SWIFT) is a form of facilitated Information sources can include may minimize any shortcomings. brainstorming, typically carried out on a analyses of known hazards, written b. Specific Fatigue-Related Hazards To higher-level system description with procedures and manuals, engineering Consider relatively few subcomponents, system descriptions, and other materials involving a multidisciplinary team of to analyze detailed procedures A number of individual, experts. The facilitator uses various performed during system operation. organizational, or environmental factors prompts, such as ‘‘what if,’’ ‘‘could • Hazard identification software can contribute to the likelihood of someone,’’ or ‘‘has anyone ever’’ programs are designed to support the fatigue. As provided in the RSIA, these questions to initiate discussion within identification of hazards using a factors should be among the many items 24 the group. SWIFT creates a detailed systematic method. Programs are considered during a hazard analysis. record of the hazard identification available that provide structured • General health and medical process, and can consume less time than guidance for identifying general hazards conditions. According to the National some other methods. However, or only fatigue-specific hazards. Such Sleep Foundation,25 there are several successful application requires careful software may also offer the ability to medical conditions or treatments of preparation, relies on the expertise and catalog the resultant fatigue-related risks those conditions that may affect experience of the team, and depends to help railroads prioritize risks. alertness. They include, but are not heavily on the skills of the facilitator. limited to, obstructive sleep apnea, • Employee workshops may be used • Operating Hazard Analysis (OHA) insomnia, periodic limb movement to engage employees in the railroad’s is when a team or individual uses disorder (restless leg syndrome), hazard analysis. Employees can share various sources of information to hypersomnia/narcolepsy (excessive their experiences and concerns relating identify hazards resulting from the daytime sleepiness), delayed sleep to fatigue with the goal of identifying operation and maintenance of a system, phase syndrome (circadian fatigue hazards, related risks, and following a structured and formal misalignment), depression, anxiety, process. In addition to the engineering potential solutions or mitigations. design analysis at which FMEA excels, These are just some of the methods 24 See 49 U.S.C. 20156(c). OHA is structured so that human available for identifying hazards. Each 25 https://sleepfoundation.org/sleep-disorders- performance and human interactions has advantages and disadvantages, and problems.

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bruxism (teeth grinding), night sweats, changes in policies and procedures, that the model output has a statistically night terrors, nocturia (waking several with regard to fatigue. reliable relationship with the risk of a times throughout the night to urinate), Job characteristics can also be a factor, human-factors accident caused by poor sleep efficiency, and residual including, but not limited to, whether fatigue, and that the model output does effects of neurological damage (e.g., the work is physically demanding, not have such a relationship with stroke). whether the work requires extended accident risks not associated with • Scheduling issues. Systemic or travel to a reporting point, and whether human factors. particular scheduling and crew-calling the employees are called upon to Calibration of the biomathematical practices and issues may affect respond to emergencies. In general, a model involves the assignment of opportunities for employees to obtain railroad that effectively manages the numerical values to represent aspects of sufficient quality and quantity of sleep. combined effects of crew scheduling, empirical observations, similar to Related issues that increase fatigue risks employee rostering, additional tasks marking degrees on a thermometer. In include, but are not limited to, the assigned to employees, schedule the case of human fatigue level and following: changes, and other factors should performance, the calibration of a fatigue succeed at minimizing fatigue-inducing scale would start with the assignment of • On-duty call practices; • conditions. values ranging from ‘‘not fatigued’’ to Work and rest cycles; ‘‘severely fatigued.’’ The calibration • 2. Assessing Risks Associated With Frequency and duration of days off; process starts during the validation Identified Hazards • Changes in start times; process with the assignment of model • Policies regarding napping; and As mandated by the RSIA, a FRMP output values to data bins for ‘‘not • Policies and practices regarding must systematically identify fatigue fatigued’’ and ‘‘severely fatigued.’’ The marking-off. hazards and evaluate fatigue safety risks next step consists of determining the The level of predictability of work on the railroad system. The goal of this fatigue threshold. Given a scale for assignments, particularly those hazard analysis is to identify work human fatigue level and performance, schedules and other conditions that put assignments that occur at night, can and a relationship between that scale employees at risk for a level of fatigue influence the ability of employees to and human factors accident risk, a final that compromises safety. anticipate work assignments and obtain calibration point would determine the Different jobs may have different value at which fatigue becomes necessary off-duty sleep. Note that work fatigue related risks. As such, it is shift or duty tour predictability alone unacceptable because the increase in important to examine the hazards accident risk at that level compromises will not necessarily eliminate fatigue associated with each job. A systematic risk, and it is possible for highly safety; this is the fatigue threshold. assessment of risk involves: (1) Railroads choosing to use predictable schedules to also have high Determining the severity and likelihood exposure to fatigue. Other factors such biomathematical fatigue modeling in of potential incidents associated with their schedule analysis will need to as time of shift, work-to-rest ratio, and the hazards identified; (2) assessing risk the speed and direction of shift rotation establish a fatigue threshold. by evaluating the relative risk of each Currently, FRA has validated and may also play a role in the employee’s identified hazard and how it impacts calibrated two commercially available ability to plan for and obtain sufficient established safety performance targets biomathematical fatigue models. These sleep.26 and/or by ranking hazards based on risk; are the Fatigue Avoidance Scheduling 27 An FRA report found that high and (3) systematically determining the Tool (FAST) and the Fatigue Audit variability in shift start times order in which risks should be InterDyne (FAID). However, any contributes to fatigue. Furthermore, FRA addressed. Selecting the criteria and validated and calibrated research also established that the methods for establishing priorities in biomathematical fatigue model may be probability of rail accidents increases as advance will promote consistent used in schedule analysis. An FRA- 28 fatigue increases. Thus, reducing start decision making over time. However, sponsored report details how any time variability could potentially flexibility is needed as risk tolerance biomathematical fatigue model may be increase safety. In addition to examining levels or prioritizations can change over validated and calibrated.29 the relationship between start time time as circumstances dictate. FRA expects that new methods for variability and fatigue, the report One tool that railroads may want to measuring and assessing fatigue risk contains information on statistical consider using to assess their fatigue- will continue to be developed. If the methods, including analyzing variance related risk is a biomathematical model. system provides a scientifically valid of start times and calculating a hazard A biomathematical model of measure of fatigue risk, whether using a function, which can be used to compare performance and fatigue that has been biomathematical modeling tool or work locations, types of jobs, and properly validated and calibrated another system, its use is acceptable for predicts accident risk based on purposes of developing and 26 Rosa, R.R. & Colligan, M.J., Plain language analyzing identified periods of implementing an FRMP. about shiftwork (DHHS [NIOSH] Publication No. wakefulness and periods available for As discussed below, there are many 97–145) (1997), Cincinnati, OH: National Institute for Occupational Safety and Health, available at: sleep. Validation of a biomathematical ways to measure fatigue risk. The http://www.cdc.gov/niosh/docs/97-145/pdfs/97- model of human performance and system or metric a railroad ultimately 145.pdf. fatigue means determining that the chooses to measure its fatigue risk will 27 Raslear, T.G., Start time variability and output of the model actually measures depend on a variety of factors and will predictability in railroad train and engine freight human performance and fatigue levels. be unique to each railroad. For example, and passenger service employees (Report No. DOT/ FRA/ORD–14/05) (2014), Washington, DC: U.S. There are two dimensions to this regardless of whether scheduled service Department of Transportation. validation. The first is that the model 28 Raslear, T.G., Hursh, S.R., & Van Dongen, must be demonstrated to be consistent 29 Hursh, S.R., Raslear, T.G., Kaye, A.S., & H.P.A., Predicting cognitive impairment and with currently established science in the Fanzone, J.F., Validation and calibration of a accident risk, in H.P.A. Van Dongen & G.A. Kerkhof fatigue assessment tool for railroad work schedules, (Eds.), Progress in Brain Research, Vol. 190 (pp. areas of human performance, sleep, and summary report (Report No. DOT/FRA/ORD–06/21) 155–167), Amsterdam, The Netherlands: Elsevier fatigue level. The second part of the (2006), Washington, DC: U.S. Department of B.V. (2011). validation process involves determining Transportation.

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is covered under statutory HOS information about cumulative fatigue particular hazard. Figure 2 shows a requirements (49 U.S.C. Ch. 211), effects that would not be apparent if basic Haddon risk matrix, which can be passenger train employee HOS only one work schedule cycle were customized to represent categories of regulations (49 CFR part 228, subpart F), analyzed. However, railroads will need probability and severity that are or no HOS limitations, a railroad should to determine how many work schedule meaningful and useful to the railroad. consider whether to include in its FRMP cycles to examine based on factors such Such a matrix provides a visual an analysis of at least two consecutive as start time variability, shift start and representation of risks. As shown in the cycles of the work schedules (the period end time, and type of work being matrix, when the probability of an within which the work schedule performed. incident is low and severity is low, the repeats) of its safety-related railroad When looking at job tasks, some form risk is also low. Conversely, when the employees. Analyzing more than one of a Haddon matrix can be helpful in probability of an incident is high and cycle of a work schedule can provide determining the risk associated with a severity is high, the risk is also high.

For example, overnight schedules will find the specific operational and mitigation, the railroad may discover inevitably include the period identified employee factors that could contribute underlying systems issues and factors as the Window of Circadian Low.30 This to significant performance changes due (e.g., inadequate rest facilities, lack of low point in performance could be to fatigue. In general, modeling cannot napping opportunities) that not only evaluated in relation to the duties to be consider non-duty-related causes of contribute to fatigue-related risks on performed at that time because an fatigue, individual differences related to that work schedule, but also on other expected raised level of fatigue is of sleep loss tolerance, and individual schedules. The use of fatigue modeling greater concern if it coincides with the differences in circadian phase and in this way provides railroads with a performance of critical or difficult tasks. amplitude. Because of these limitations, method for systematically identifying Using a fatigue model can be helpful modeling should never be used to and addressing the overall underlying for determining both frequency and contradict an individual’s reported system risks—not just the risks for a severity of fatigue risk associated with fatigue level. However, these models given work schedule. specific schedules. Modeling is can take into account the complex extremely useful because it applies interactions among human physiology, 3. Prioritizing Risks and Implementing scientific principles about fatigue to work, and rest times. In the absence of Mitigation such a model, the interaction of these 30 The Window of Circadian Low is the time Risk assessment processes must between 2:00 a.m. and 6:00 a.m. where individuals factors would be very difficult to include a method for determining which are normally adapted to sleep and performance of specify. risks most urgently require mitigation, tasks during this period may be degraded. See For example, if a fatigue model which could be addressed at a later Advisory Circular 120–100, Basics of Aviation Fatigue, 06/07/10, U.S. Department of identified a particular type of work time, and which are minor enough that Transportation. schedule that would benefit from fatigue simply monitoring the hazard would be

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sufficient. Methods commonly used in conditions that affect alertness. This can and (2) developing and implementing Safety Management Systems include, be accomplished by providing alertness strategies, such as policies on but are not limited to, ranking all risks information about the specific medical napping, to address acute drowsiness based on their risk score, or setting a condition, its risk factors, prevalence, and fatigue while an employee is on risk tolerance threshold. If the risk and how to recognize symptoms, or by duty. assessment process includes a risk identifying when to seek treatment, how Alertness strategies are generally tolerance threshold, hazards whose to obtain a diagnosis, and treatment classified into two broad categories: associated risk is above that threshold options. Preventative and operational. should be addressed; those with risk Information relevant to determining Preventative countermeasures are below the threshold need not be when to seek treatment can include the designed to minimize sleep loss and mitigated, but should be monitored for time of onset, duration of symptoms, reduce the disruption to circadian change. If a risk tolerance threshold is related health factors, comorbid cycles. The benefits of preventative not used, the risks should be tackled in conditions, and observations from the countermeasures can be long-lasting.31 whatever priority order is established employee or family. Observation of Operational countermeasures are during the risk assessment. Once the these factors can be helpful in designed to enhance alertness and task assessment of risks associated with distinguishing a condition such as performance and are generally only fatigue hazards has been completed, as transient insomnia, which often resolves effective for a short time.32 part of their FRMP, railroads must on its own, from chronic insomnia, Work schedule systems are typically develop and implement mitigations to which frequently requires medical designed to organize the timing and reduce as many of those risks as treatment. Railroads could consider structure of work to maximize efficiency possible. informing their safety-related employees and productivity, and seldom are these Based on an analysis of the factors that information from family members schedules designed to minimize the that lead to fatigue and practical may provide insight into a sleep safety risks associated with work mitigation alternatives, one or more disorder of which an employee may schedules that are incompatible with mitigation options may be applied to otherwise be unaware. human biological limitations, such as reduce fatigue associated with specific Railroads can collect information circadian rhythm.33 Fatigue risk in an schedules or situations. Risk mitigations regarding the medical professionals industry that operates 24 hours a day, 7 are changes to the way things are done, involved in diagnosis. For some days per week is not just dependent on or to the conditions under which things disorders, this may only involve an how many hours per day a person is are done, that can reduce either the individual’s primary care physician. permitted to work, or the amount of likelihood or the severity of a hazard. Other disorders may require time that a person is required to be off- Examples of mitigations range from consultation from a neurologist, sleep duty between periods of work. Other small actions, such as replacing a faded specialist, cognitive behavioral significant factors that influence the sign to improve visibility, to very large therapist, or other medical level of fatigue risk include the time of interventions, such as a system-wide professionals. In addition, it may be day that an employee works, the rule change or technology helpful to list or describe the diagnostic number of consecutive hours worked, implementation and associated training. tests involved and the typical time direction and frequency of schedule The mitigations selected must be required to obtain diagnosis. For rotation, the number of consecutive tailored to address at least one of the example, a diagnosis of obstructive days that an employee works, amount of risks assessed. Railroads should, sleep apnea may require a sleep study sleep, and sleep quality. In addition, however, be alert to potential such as a polysomnography, which individual factors such as sleep unintended consequences of generally requires an individual to disorders, age, and ‘‘morningness/ mitigations, and be careful to select spend the night in a sleep center. eveningness’’ as well as natural mitigations that minimize the Lastly, treatment options could be circadian rhythms and environmental possibility of inadvertently increasing discussed. For some sleep disorders, and social factors may affect one’s other risks. behavioral modifications or lifestyle There are many ways railroads can changes, such as weight loss, may be 31 Preventative countermeasures include: mitigate the specific risk types that are sufficient to address the medical Adequate sleep/minimizing sleep loss, strategic required under the RSIA as part of an condition. Other medical conditions napping at times such as before working or during an interim release period, good sleep habits/ FRMP to be considered for mitigation. may require breathing assistance via environment to maximize opportunities for good Below are some examples of how a continuous positive airway pressure, quality sleep, limiting work schedule modification/ railroad may mitigate these fatigue risks. medical devices (such as night guards or maximizing schedule predictability, diet, exercise, If the risk assessment shows that mandibular advancing devices), or fatigue education, model-based schedule optimization/innovative scheduling and staffing fatigue risks to the population of safety- medication. practices, and opportunities to identify, diagnose, related railroad employees associated Sometimes scheduling issues affect and treat sleep disorders. with general health and medical the opportunities of safety-related 32 Operational countermeasures include: conditions meet the railroad’s railroad employees to obtain sufficient Alertness aids including, workplace napping, split established criteria for requiring quality and quantity of sleep. When the sleep, rest breaks, self and peer monitoring, mental stimulation, worker status alerting or monitoring mitigation, there are several approaches risk assessment determines that the technologies, strategies for shifting an employee’s that can be taken. The railroad can risks associated with those schedules biological clock, bursts of physical activity, establish new policies, such as those meets the railroad’s established criteria increasing the number of consecutive hours of off- requiring periodic screening for specific for requiring mitigation, methods for duty rest, during which an employee receives no communication from the employing railroad’s medical conditions. The railroad can mitigating those risks could include: (1) managers, supervisors, officers, or agents, and establish practices (e.g., exercise breaks Identifying methods to minimize avoiding abrupt changes in rest cycles for or making healthy foods more available) accidents and incidents that occur as a employees by improving schedule predictability. that encourage greater general health result of working at times when 33 Raslear, T.G., Gertler, J., & DiFiore, A., Work schedules, sleep, fatigue, and accidents in the US and fitness to reduce the likelihood of scientific and medical research has railroad industry, Fatigue: Biomedicine, Health & sleep apnea. The railroad can also take shown that increased fatigue levels Behavior, 1, 99–115 (2013), available at: http:// steps to increase awareness of medical disrupt employees’ circadian rhythm; www.fra.dot.gov/eLib/details/L04272.

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fatigue level and alertness.34 Developing Members of the Education and be limited to physiological symptoms work schedules that reduce the risks of Training Task Force representing labor such as excessive blinking, yawning, or fatigue as part of a systematic FRMP organizations also expressed major physiological discomfort, but also may help a railroad balance its concerns with the ‘‘Training Topics’’ should include fatigue-related productivity and safety needs. section on commuting. Specifically, performance decrements such as labor did not feel the commuting section increased reaction time. 4. Summary of the Work of the FRMP adequately captured the extended (3) Causes of fatigue: Although Working Group’s Task Forces commuting requirements of some individual differences play a significant The FRMP Working Group’s Task employees (e.g., maintenance-of-way), role in how an individual will react to Forces extensively discussed mitigation and the concern that extended different causes of or risk factors for of identified fatigue risks in the areas set commuting is a required activity that fatigue, some of the main causes of forth in the RSIA. contributes to employee fatigue, even fatigue should be highlighted. These include: Amount of sleep, quality of a. The Education and Training Task though it occurs during off-duty hours. In 2019, FRA released a report sleep, amount of time since last sleep Force examining the relationship between (i.e., number of continuous hours The Education and Training Task accidents and incidents involving awake), time of day (circadian rhythm), Force focused on the content and maintenance-of-way employees and workload and time on task, amount of dissemination of training on the fatigue their work schedules to determine the recuperative time between wakeful issues specific to the railroad industry. role of fatigue in such accidents and episodes, sleep disorders and co-morbid The Education and Training Task Force incidents.35 This report may help conditions (e.g., stress, depression, began by preparing a document address some of the concerns raised by anxiety, post-traumatic stress disorder), summarizing existing fatigue training the Education and Training Task Force general health, and family factors and education materials and regarding fatigue issues experienced by (including caregiver responsibilities). In highlighting the diversity of the these employees. addition, employees may provide materials and some of the major topics The section of the Training Topics anecdotal information of fatigue factors they covered. The document also document on scheduling had the most for a particular job and a railroad may includes information on other fatigue areas of concern and protracted consider this information in addressing educational resources, including The discussion, particularly on the issue of causes of fatigue in its training program. Railroaders’ Guide to Healthy Sleep schedule predictability. (4) Circadian rhythm: An individual’s website, existing FRA fatigue-related The Task Force discussed that a circadian rhythm dictates when he or publications, other rail-related fatigue fatigue education and training program she will be most alert and at what times training and educational resources, and must have the following characteristics he or she will feel the most fatigued. general fatigue resources. to be effective: (1) The program must be Employees should have a general The Education and Training Task technically correct, reflecting current understanding of the circadian rhythm, Force also created the ‘‘Training scientific understanding of the issue how it affects fatigue levels, how it is Topics’’ document, which identifies being addressed; (2) information must impacted by the light-dark cycle, and its appropriate fatigue-related training be meaningful and useful to the role in such processes as body topics. The ‘‘Training Topics’’ intended audience; (3) the materials temperature, brain wave activity, and document covers four major categories: must be disseminated appropriately; other biological functions. (5) Individual differences: As part of Introductory fatigue training, off-duty and (4) the program’s impact must be a fatigue training and education fatigue issues, preventative strategies, evaluated. Furthermore, the Task Force program, the role individual differences and operational strategies. The Task discussed the following basic elements play in fatigue should be understood. Force members agreed on the content of of any fatigue training and education For example, there is a great deal of most of the sections and subsections. A program. variability of sleep requirements among few topics represented major areas of (1) Fatigue definitions: Fatigue is a individuals. Some individuals may feel concern for both railroad labor and complex state that is characterized by a rested and alert after as few as 5 hours railroad management. lack of alertness and reduced mental of sleep, while others may require 10 or and physical performance, often Both labor and management members more hours of sleep to feel rested and accompanied by drowsiness.36 of the Task Force asked that a section alert. These sleep requirements vary due Railroads may also wish to provide on the role of individual differences in to such factors as the exact phase and other definitions that will be used fatigue related to vulnerability, amplitude of an individual’s circadian throughout the training and education countermeasure efficacy, and rhythm, activity level, age, fatigue program, including those that are performance be included in the sensitivity, and health. Furthermore, unique to the railroad. ‘‘Training Topics’’ document as a topic some individuals may be more sensitive (2) Signs and symptoms of fatigue: for introductory fatigue training. to the effects of fatigue, and efficacy of Although signs and symptoms of fatigue The Education and Training Task countermeasures may vary depending can vary among individuals in both Force thoroughly discussed the on the individual. ‘‘Training Topics’’ section on shiftwork their presence and magnitude, it is (6) Fatigue misconceptions: There are as a cause of fatigue. Much of this useful to review common signs and some misconceptions associated with discussion centered on predictability symptoms of fatigue. These should not fatigue. Individuals are often poor issues inherent in this type of work judges of both their own fatigue level schedule and differing perspectives on 35 Kumagai, J.K. & Harnett, M., Data analysis for maintenance-of-way worker fatigue, Washington, and the efficacy of fatigue how to address predictability. DC: Federal Railroad Administration (2019), countermeasures. This is an opportunity retrieved from: https://www.fra.dot.gov/eLib/ to debunk certain ineffective 34 Horne, J.A., & O¨ stberg, O., A self-assessment Details/L1984.3. countermeasure myths and also to questionnaire to determine morningness- 36 United States Department of Transportation, eveningness in human circadian rhythms, Partnering in Safety: Managing Fatigue: A discuss the limitations associated with International Journal of Chronobiology, 4, 97–110 Significant Problem Affecting Safety, Security, and effective countermeasures. Certain (1976). Productivity, p. 5 (1999). stereotypes regarding fatigue can be

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addressed as well. For example, feedback about the FRMP as part of the consider when choosing delivery experiencing fatigue does not railroad’s own periodic review process. approaches for fatigue education and automatically indicate weakness or a In addition, a railroad should training, and suggesting methods lack of motivation. familiarize its employees with its railroads could use for successful (7) Shiftwork: Many railroads operate procedures and processes for reporting evaluation of a fatigue education and 24 hours a day, 7 days a week, 365 days fatigue levels and fatigue mark-off training program. The ‘‘Dissemination a year. This operational schedule policies. Strategies’’ document identifies and requires employees to work different As provided in the RSIA, any training discusses the following ten elements of shifts. Passenger and freight operations, and education program should be based an effective dissemination and different railroad classes, and different on a foundation of the most current evaluation plan listed below. jobs will all have different shiftwork medical and scientific research; 37 FRA 1. Goals: The first step in an effective needs. Some jobs will work a dedicated interprets this to include relevant dissemination and evaluation plan is shift, while other jobs can be statistical information, to the extent determining and documenting the goals unpredictable and be based on a variety possible. FRA notes that resources that for the training and education program. of factors including train schedules, provide information on the prevalence The primary question to ask at this step employee availability, and other needs. of sleep disorders, the number of is: What is the desired outcome of the When discussing shiftwork, training Americans not obtaining adequate sleep, training and education program? content will be influenced by a and the mental and physical Different railroads may have different particular railroad’s operations and implications that result are available training goals and these goals will help collective bargaining agreements. and updated annually.38 Sleep research shape how information is presented to However, discussions of shiftwork collected from and related to railroad employees. should provide information on the employees of various crafts is also 2. Objectives: When considering fatigue risks associated with night work, available. objectives of a fatigue training and split shifts, consecutive shifts worked, The Education and Training Task education program, determine specific and working different shifts throughout Force also identified training topics areas of accomplishment for each goal. the week. This information should addressing off-duty fatigue issues and Once those areas have been established, include strategies to cope with those preventative strategies. These included the next step is to determine what will shifts occurring during circadian lows. common sleep disorders, physiological be required to measure success. (8) Illnesses and stress: Although it versus subjective assessments of fatigue, 3. Measuring Success: There is no would be impractical to discuss the lifestyle factors, nutrition and single ‘‘correct’’ way to measure impact of every possible illness and hydration, exercise, substance use, the success. However, any measure of stressor on fatigue, it nevertheless is home environment, and commuting. success should indicate if the material worthwhile to discuss how illnesses and The Task Force also created a reached the intended audience, was stress in general can impact sleep ‘‘Dissemination Strategies’’ document understood, and had a positive effect. quality. Furthermore, some stressors outlining steps railroads should Evaluation strategies may be direct, and illnesses can lead to sensitization to such as administering a quiz to test fatigue-inducing factors. 37 49 U.S.C. 20156(f)(3)(A). knowledge of a particular topic, or (9) Consequences of fatigue: The 38 Example resources include: indirect, such as looking at safety potential consequences of fatigue are Calabrese, C., Mejia, B., McInnis, C.A., France, culture change as a result of training. numerous and varied. However, from a M., Nadler, E., & Raslear, T.G., Time of day effects Neither method is superior to the other, training perspective, the key on railroad roadway worker injury risk, Journal of but multiple evaluation strategies may information to convey is the Safety Research, 61, pp. 53–64 (2017). provide a more comprehensive Dorrian, J., Baulk, S.D., & Dawson, D., Work relationship between fatigue and hours, workload, sleep and fatigue in Australian understanding of program efficacy. performance. Although individual Rail Industry employees, Applied Ergonomics, 4. Employees Covered: An effective differences will influence how fatigue 42(2), pp. 202–209 (2011). dissemination and evaluation plan affects performance, in general, as Dorrian, J., Hussey, F., & Dawson, D., Train should identify the employees covered fatigue levels increase, task performance driving efficiency and safety: Examining the cost of by the different elements of a training fatigue, Journal of Sleep Research, 16, pp. 1–11 decreases, and this decrease in (2007). and education program. There may be performance increases accident risk. Gertler, J., Difiore, A., & Raslear, T., Fatigue some elements of a program that apply (10) Introduction to FRA FRMP Status of the U.S. Railroad Industry, Washington, to all railroad employees, while other regulations: A railroad may choose to DC: U.S. Department of Transportation, Federal elements may only apply to a particular provide an overview of FRA regulations Railroad Administration (2013). craft, shift, or schedule type. At this Gertler, J., & Viale, A., Work Schedules and Sleep regarding the requirements for FRMPs. Patterns of Railroad Maintenance of Way Workers, stage, thought should also be given to This overview can highlight any Washington, DC: U.S. Department of any special needs a covered group may changes to operations as a result of the Transportation, Federal Railroad Administration have. For example, if a large percentage promulgation of the FRMP regulation as (2006). of a covered group does not have email well as highlight the key requirements Kumagai, J. & Harnett, M. Data Analysis for Maintenance-of-Way Worker Fatigue (2019), access, disseminating information via that all FRMPs must contain. available at: https://www.fra.dot.gov/eLib/details/ email would be neither practical nor (11) Railroad FRMP: Following L19843#p1_z50_gD_lRT. effective. information on FRA FRMP regulations, Sussman, D., & Coplen, M., Fatigue and Alertness 5. Content: Perhaps the most a railroad may wish to take time to in the United States Railroad Industry Part 1: The important element to consider when Nature of the Problem, Transportation Research familiarize its employees with its own Part F: Traffic Psychology and Behaviour, 3(4), pp. developing a dissemination and FRMP. Railroads should highlight any 211–220 (2000). evaluation plan is the content to be new policies or procedures associated Raslear, T.G., Gertler, J., & DiFiore, A., Work presented. At this step, proposed fatigue with the creation of the FRMP as well schedules, sleep, fatigue, and accidents in the US training and education content should as detail any changes or benefits that railroad industry, Fatigue: Biomedicine, Health & be reviewed to make sure it is accurate Behavior, 1, pp. 99–115 (2013), available at: http:// have resulted from its implementation. www.fra.dot.gov/eLib/details/L04272. and relevant to the covered groups. A railroad may also wish to provide https://www.cdc.gov/sleep/index.html and 6. Source: Care should be given to employees with a mechanism to provide https://www.sleepfoundation.org./ ensure that information presented

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comes from credible and trusted are countermeasures designed to apply to these employees as well. For sources. minimize sleep loss and reduce the example, the ‘‘Emergency Work’’ 7. Presentation Medium: At this stage disruption of circadian cycles and the document includes provisions such as in the process, the program designer benefits of preventative relief assignments when an emergency should determine the most effective countermeasures can be long-lasting. is anticipated to extend more than 16 methods to present different elements of Operational countermeasures are hours, and provisions to offer relief the fatigue training and education designed to enhance alertness and task lodging for employees both between program. Some information may be best performance while on duty and are shifts of extended work at an emergency suited for in-person training while other generally only effective for a short time. location, and, if necessary, for an information might be best conveyed employee to rest before commuting b. Scheduling Task Force through publications. Some home after an extended period of presentation media to consider include The FRMP Working Group’s emergency service. Such provisions in-class training, informational videos, Scheduling Task Force discussed the would provide some protection against handouts, peer-to-peer efforts, job scheduling issues that affect fatigue. fatigue for those employees not subject briefings, and conferences or other However, several issues prevented to HOS requirements and, if the meetings. Depending on the covered agreement on scheduling including: (1) emergency situation resulted in the group’s access to the internet, Web The need to differentiate between nonapplication of the HOS laws, for resources such as Web-based training, employees covered by HOS limitations employees performing service normally emails, websites, blogs, and social (covered service employees) and covered by the HOS limitations. media could also be used. The employees not covered by such The Task Force also created two preceding examples are not an requirements; (2) the need for waivers documents; ‘‘Accommodations’’ and exhaustive list, and each railroad will and/or pilot projects to implement ‘‘Dispute Resolutions,’’ focused on need to tailor its presentation media scheduling practices that might conflict mitigating fatigue related to issues at based on the identified goals, objectives, with existing HOS limitations; (3) lodging facilities. The first document, and employees to be covered. disagreement on whether using ‘‘Accommodations,’’ includes 8. Access: Fatigue training and biomathematical fatigue models is guidelines for accommodations where education should be an ongoing process. appropriate for freight operations; (4) employees rest during off-duty periods, Therefore, it is important that potential conflict with existing and the second document, ‘‘Dispute employees have easy access to collective bargaining agreements; and Resolutions,’’ provides dispute information. Employees should have a (5) how much emphasis should be resolution procedures for issues arising way to revisit information that was placed on an employee’s work schedule with lodging facilities that interfere with previously presented. Examples of predictability. The Scheduling Task an employee’s ability to rest.39 The Task making information accessible could Force did not produce a document. Force made clear that the include providing access to fatigue c. Infrastructure and Environment Task ‘‘Accommodations’’ and ‘‘Dispute presentations on the company Intranet Force Resolution’’ documents were intended after an initial classroom presentation, to apply to all employee lodging, even handouts after a one-time job briefing, The Infrastructure and Environment lodging that is not ‘‘railroad provided’’ or posters that highlight key points. Task Force provided guidelines it (e.g., commercial hotels). 9. Availability: At this step, a railroad suggested railroads should consider to The Task Force indicated that the developing a fatigue training and mitigate fatigue when employees are accommodations guidelines are education program should consider involved in emergency work. The Task intended to provide elements for strategies for promoting awareness of Force interpreted an emergency based discussion during the required the availability of training and on the nonapplication language in the consultation between management and educational materials. HOS laws at 49 U.S.C. 21102(a). labor about a railroad’s FRMP, rather 10. Challenges: The challenges related Specifically, the ‘‘Emergency Work’’ than to provide minimum standards for to effectively disseminating and document provides that an emergency lodging facilities. The Task Force did evaluating information as part of a for purposes of the guidelines is defined not expect every lodging facility would fatigue training and education program in 49 U.S.C. 21102(a)(1)–(4), which meet all of the listed criteria. The Task will vary greatly. These challenges states that the HOS requirements do not Force agreed that while the listed could include a variety of issues, such apply to situations involving a casualty, elements were desirable, they may not as difficulty reaching a particular group, an unavoidable accident, an act of God, be possible at all locations, and, in some lack of resources to present a topic as or a delay resulting from a cause cases, collective bargaining agreements originally planned, or even glitches in unknown and unforeseeable to a might provide for other arrangements. Web technology. Determining how best railroad carrier or its officer or agent in For example, while the guidelines to deliver information in a manner that charge of the employee when the recommend a single occupancy room, is understandable, appropriate, and employee left a terminal. some existing labor agreements may engaging to different employee groups This definition incorporates a wide provide for four employees to a room. will present its own set of challenges. At variety of emergency situations, Similarly, while a full or double bed this stage, potential challenges should including those referred to in section be identified as well as solutions for 20156(f)(3)(C), ‘‘derailments and natural 39 Under 49 U.S.C. 21106, a railroad may provide overcoming or mitigating these disasters, or engagement in other sleeping quarters for employees, and any challenges. intensive working conditions.’’ The individuals employed to maintain the right-of-way of a railroad carrier, only if the sleeping quarters are Finally, the Education and Training employees responsible for responding to clean, safe, and sanitary, give those employees and Task Force created a document that these emergency situations may include individuals an opportunity for rest free from the highlights and explains two general employees performing functions not interruptions caused by noise under the control of categories of fatigue countermeasures covered by HOS requirements, and the the carrier, and provide indoor toilet facilities, potable water, and other features to protect the (preventative and operational), and ‘‘Emergency Work’’ document makes health of employees. Further, 49 CFR part 228, provides examples of each. Preventative clear that the Infrastructure and subpart C, provides additional requirements for countermeasures, as the name suggests, Environment Task Force intended it to railroad-provided sleeping quarters.

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may be preferred, there may be locations security, and personal hygiene and procedures for managing employees where this is not an option and only sanitation. working under excessive fatigue single beds are available at the only The Task Force ‘‘Dispute Resolution’’ conditions; (7) procedures for reporting available lodging facility. document does not define ‘‘adequate potential hazards and risks; and (8) The ‘‘Dispute Resolution’’ document rest,’’ nor does it specify the conditions procedures for when an employee is too recognizes that employees will first seek at a lodging facility that would prevent fatigued to continue work (e.g., to resolve issues at lodging facilities an employee from obtaining adequate temporary work assignment). rest. Employees covered by HOS laws or with on-site staff, such as the front desk 5. Tracking Performance at a hotel. The ‘‘Dispute Resolution’’ regulations would be required to receive document recommends that FRMP the amount of off-duty time provided As required in 49 CFR plans include a railroad contact with under the relevant laws or regulations. 270.103(p)(1)(viii) and 49 CFR authority over lodging decisions and For other employees, rest requirements 271.105(c)(3), FRA proposes that each require that contact to make a good faith may depend on the situation, or may be railroad must develop a system to track effort to resolve lodging issues in a provided by a collective bargaining identified risks and mitigation strategies timely manner so the employee can agreement or other mechanism. within the FRMP. Railroads must obtain adequate rest before returning to However, the Task Force ‘‘Dispute continually monitor all identified risks, duty. For example, if the heat is not Resolution’’ document suggests that if not just risks that are currently being working in a given room, the lodging an issue arises at a lodging facility that targeted for mitigation. As a railroad’s facility will likely move the employee to interferes with an employee’s ability to FRMP matures, mitigation strategies are a different room. However, if there were obtain rest, the employee should receive implemented, and operations change, no other rooms available, or if the issue the amount of rest he or she would have risks will also change. A railroad may find that certain risks have been were something like electric power had if the lodging issue had not essentially eliminated, while others may being out at an entire facility, the occurred. For example, if there are no have been significantly reduced, and railroad contact should become towels in the room when an employee previously undetected risks may involved to assist the employee in arrives, but the front desk promptly emerge. As risks develop, the system finding alternate lodging. brings towels upon request, this should not hinder the employee’s ability to get must be able to incorporate these newly The ‘‘Dispute Resolution’’ document adequate rest. On the other hand, if an identified risks into their processes. provides that FRMP plans should employee is provided a room with a Evaluation of fatigue-related contain a dispute resolution process broken bed, and it takes five hours to information might show that some covering sleeping accommodations locate another room or bed, the railroad mitigation strategies do not meet provided by or through the railroad. It may need to adjust the time an expectations for effectively reducing should be noted that this process is not employee is required to return to duty fatigue. It could also show that changes intended to supplant or modify the so the employee can obtain adequate in schedules, the addition of new requirements established by 49 CFR rest. technologies, turnover in the workforce, 228.333, Remedial action, as part of the Lastly, as part of its discussions, the added demands for service, and other Camp Car regulation. The Task Force Task Force identified circumstances operational changes could present new suggested that any FRMP dispute when employees may have to work fatigue hazards or change the risks resolution process should be designed under excessive fatigue conditions. In associated with hazards already known. to address problems associated with the these instances, when, despite best When either of these circumstances sleeping accommodations that would efforts, employees must work under arises, the fatigue risk landscape is interfere with an employee obtaining conditions identified as having an altered, and the railroad should again adequate rest. As part of the FRMP plan, excessive risk for fatigue, the Task Force use the risk factor analysis processes to the Task Force recommended that discussed that the specific risks and address those changes. railroads identify a protocol for hazards associated with operations For risks being mitigated, the railroad contacting a railroad representative under excessive fatigue should be should note the date the mitigation should resolution with a lodging facility identified. Once identified, an excessive strategy was implemented and track the fail. fatigue protocol can be implemented for progress and success of the mitigation The Task Force identified parameters employees at risk. The Task Force strategy over time. Risks that are not it recommended employer-provided suggested that railroads may wish to mitigated or have not been mitigated to lodging should meet to the extent consider formalizing these protocols the extent desired should be evaluated practicable. FRA notes that interim rest into a Workplace Fatigue Policy. They for changes in mitigation strategies, as facilities provided by passenger train also suggested that a fatigue policy may appropriate. Risks that have been operators under 49 CFR 228.409, be an effective way to communicate successfully eliminated should be Requirements for railroad-provided how operations will be handled when noted, and new risks that have emerged employee sleeping quarters during employees are working under fatigued should be assessed for probability and interim releases and other periods conditions. This policy could be system- severity and incorporated into the available for rest within a duty tour, are wide or site or craft specific. A fatigue railroad’s risk assessment catalog. subject to the requirements of that policy may include information about: Existing risks should also be reviewed section. As such, the Task Force’s (1) Roles and responsibilities of for changes in probability and severity. suggested parameters are not applicable employees and supervisors when As a railroad reviews its fatigue-related to interim rest facilities under § 228.409. working under excessive fatigue risks and risk tolerance, the risks to be In addition, local labor agreements may conditions; (2) maximum shift length; mitigated and the types of mitigation supersede or supplement some of the (3) control measures for specific jobs, strategy to be used may change over elements of these parameters. The tasks, or operations; (4) fatigue self- time. Evaluation might also show that parameters the ‘‘Dispute Resolution’’ assessment checklists; (5) identification some portion of the FRMP is not being document identifies include structural of errors that are more likely to happen implemented as designed. It could also factors, availability of meal when fatigued and procedures to reduce identify aspects of the program that, accommodations, building safety and the likelihood of these errors; (6) even though they are working as

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designed, are not effective. In any of moderate the frequency with which it The SSP and RRP rules do not use the these instances, the evaluation could occurs, or reduce the severity of fatigue term ‘‘safety-related employee’’ because lead to program improvements. consequences. the RSIA does not limit the railroad Finally, consistent with 49 CFR While the RSIA did not define safety risk reduction requirement to 271.107, an effective FRMP includes ‘‘fatigue,’’ FRA is proposing to define these employees. See 49 U.S.C. feedback mechanisms and regular ‘‘fatigue’’ consistent with the DOT 20156(a)–(e). FRA requests comment on information updates about the system to operational definition 40 of the term, as whether the proposed definition of all affected employees to encourage ‘‘a complex state characterized by a lack ‘‘safety-related employee’’ captures the cooperative participation in the FRMP. of alertness and reduced mental and intended scope of Congress’s mandate V. Section-by-Section Analysis physical performance, often for fatigue management plans in Section accompanied by drowsiness.’’ 20156. FRA proposes to amend 49 CFR part FRA proposes to define ‘‘fatigue risk 270 (SSP) by adding a new subpart E, FRA requests public comment on analysis’’ as a risk-based analysis that is these proposed definitions and whether and to amend 49 CFR part 271 (RRP) by focused on the hazards and risks adding new subpart G. As proposed, other terms used in this proposal should associated with fatigue. In 49 CFR be defined. each of these new subparts would be 271.103(b), a covered railroad is titled ‘‘Fatigue Risk Management required to conduct a risk-based hazard Sections 270.403 and 271.603—Purpose Programs;’’ substantively identical; and analysis of its operations that includes: and Scope of a FRMP set forth the requirements for railroads (1) Identification of hazards; and (2) a to develop and implement FRMPs as Proposed §§ 270.403 and 271.603 calculation of risk by determining and explain the purpose and scope of the part of their SSPs or RRPs. FRA also analyzing the likelihood and severity of proposes to amend: § 270.103(a)(1) to proposed rule. As proposed, paragraph potential events associated with those (a) of each section states that the ensure a railroad’s SSP plan includes hazards. See also 49 CFR 270.5, subpart E, by replacing the word purpose of the subparts is to require definition of risk based hazard railroads to develop and implement ‘‘section’’ with the word ‘‘part’’; management. FRA proposes to define § 271.101(a) by adding an FRMP to the FRMPs to improve railroad safety FRMP as fatigue risk management through structured, proactive processes list of required elements of an RRP; and program, and the FRMP plan is the § 271.201, to include an FRMP plan as and procedures to identify and mitigate documentation that describes the the risks associated with fatigue on their a required component of an RRP plan. processes and procedures a railroad The new subparts would require each employees. uses to implement its FRMP. railroad subject to part 270 or part 271 Section 20156(f)(1) requires a railroad Proposed paragraph (b) of these (covered railroads) to establish and to have a fatigue management plan sections address the scope of the implement an FRMP that is supported designed to reduce the fatigue proposed rule and would require by an FRA-approved written FRMP experienced by ‘‘safety-related railroads to develop their FRMPs to plan, as a component of a railroad’s SSP employees.’’ FRA proposes to define reduce the fatigue of their safety-related or RRP. This proposed rule would also ‘‘safety-related railroad employee’’ railroad employees and to reduce the require covered railroads to review their consistent with the definition of the risk of railroad accidents, incidents, FRMP annually, and if necessary, make term in 49 U.S.C. 20102. As proposed, injuries, and fatalities where the fatigue FRA-approved updates to their plans. ‘‘safety-related railroad employee’’ of any of these employees is a 41 FRA is proposing this rule in its effort would mean a person: (1) Subject to 49 contributing factor. Proposed to improve rail safety continually and to U.S.C. 21103, 21104, or 21105 or 49 CFR paragraph (b) further requires each satisfy the statutory mandate in 49 part 228 subpart F (the hours of service railroad, in developing its FRMP, to U.S.C. 20156. FRA seeks comments on laws and regulations); (2) involved in identify and evaluate, systematically, all aspects of the proposed rule. railroad operations, but not subject to the fatigue-related railroad safety Sections 270.401 and 271.601— the hours of service laws and hazards and risks on its system, Definitions regulations; (3) who inspects, installs, determine the degree of risk associated with each hazard, and manage those Proposed §§ 270.401 and 271.601 repairs or maintains track, roadbed, signal and communication systems, and risks to reduce the fatigue that its safety- contain definitions for terms used in related railroad employees experience. this NPRM. The sections include electric traction systems including a roadway or railroad bridge worker; (4) This system-wide fatigue risk proposed definitions for the terms: identification and evaluation process Contributing factor, fatigue, fatigue-risk who is a hazmat employee as defined in 49 U.S.C. 5102(3); (5) who inspects, must account for the varying analysis, FRMP, FRMP plan, and safety- circumstances of railroad operations on related railroad employee. The proposed repairs, or maintains locomotives, passenger cars, or freight cars; or (6) different parts of its system. The definitions are intended to clarify the railroad would then be required to meaning of important terms used in this who is the employee of any person who enters into a contractual relationship employ in its FRMP the appropriately proposed rule and to minimize potential identified fatigue risk mitigation misinterpretation of the regulations. with the railroad either to perform FRA is proposing to define significant safety-related services on the railroad’s behalf or to utilize significant 41 The RSIA requires railroads ‘‘to reduce the ‘‘contributing factor’’ as a circumstance likelihood of accidents, incidents, injuries, and or condition that helps cause a result safety-related services provided by the fatalities caused by fatigue.’’ Fatigue is a complex (i.e., fatigue). Contributing factors do not railroad for railroad operations and multifaceted condition with varying effects necessarily cause fatigue by themselves, purposes, if the person performs one of among individuals; however, it is not always the the functions identified in paragraphs primary cause of an accident or incident. The but they can increase the likelihood presence of fatigue can increase the likelihood of an fatigue will occur, or can increase the (1) through (5). accident happening, or it can make the severity of fatigue when it does occur. consequences of an accident more severe. FRA uses 40 United States Department of Transportation, the term ‘‘contributing factor’’ to make clear that Eliminating or mitigating contributing Partnering in Safety: Managing Fatigue: A railroads may choose mitigations that address either factors may not eliminate fatigue and Significant Problem Affecting Safety, Security, and the likelihood or the severity of an accident, associated risk, but doing so can Productivity, 1999; p. 5. incident, injury, or fatality caused in part by fatigue.

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strategies to address those varying the general requirement that a railroad the requirements of this proposed circumstances.42 subject to part 270 or 271 would have section and if so, what type of to establish and implement an FRMP additional resources would be Sections 270.405 and 271.605—General that meets certain requirements. necessary. Requirements; Procedure Proposed paragraph (b) of these Paragraph (c) of these sections would These proposed sections set forth the sections contains the minimum require a railroad as part of its FRMP to rule’s general requirements. Paragraph requirements for the fatigue-risk develop and implement mitigation (a) in each of these sections would analysis part of a railroad’s FRMP. strategies that improve safety by require each railroad subject to either These paragraphs specify that a reducing the risk of railroad accidents, RRP or SSP to establish and implement railroad’s fatigue-risk analysis must incidents, injuries, and fatalities where an FRMP fully as part of its SSP or RRP. include identification of fatigue-related fatigue of any of its safety-related As proposed, these paragraphs would railroad safety hazards, assessment of railroad employees is a contributing also require each railroad to develop the risks associated with those hazards, factor. These paragraphs state that as a and implement an FRMP plan to and prioritization of those risks for railroad develops and implements support its FRMP. A railroad’s FRMP mitigation. The proposed paragraph also mitigation strategies, it would be plan would be required to meet the requires that the fatigue risk analysis required to consider, at a minimum, the requirements of proposed § 270.409 or consider, at a minimum, three categories railroad’s policies, practices, and 271.609, and be approved by FRA under of risk factors: communication. Paragraphs (c)(1)–(3) the processes in subpart C of part 270 (1) General health and medical describe each of these three areas of or subpart D of part 271. Consistent with conditions that can affect the fatigue consideration in more detail. Section 20156’s mandate for railroads to levels of safety-related railroad Paragraph (c)(1) would require update their fatigue mitigation plans employees; railroads to consider developing and periodically, proposed paragraph (a) (2) scheduling issues that can affect implementing policies to reduce the risk would also require railroads to update the opportunities of safety-related of the exposure of its safety-related their FRMP plans as necessary as part of railroad employees to obtain sufficient railroad employees to fatigue-related the annual, internal assessment of the quality and quantity of sleep; and railroad safety hazards on its system. railroad’s SSP or RRP already required (3) characteristics of each job category Paragraph (c)(2) would require by existing §§ 270.303 and 271.401. FRA worked by safety-related railroad railroads to consider developing and believes the annual internal assessment employees that can affect the fatigue implementing operational practices to should be sufficient for a railroad to levels and risk for fatigue of safety- reduce the risk of the exposure of its determine whether any aspect of its related railroad employees. safety-related railroad employees to FRMP plan requires updating. FRA Railroads are not limited to fatigue-related railroad safety hazards requests comments on whether the consideration of these three types of risk on its system. annual internal assessment provides an factors in their FRMPs and FRA Paragraph (c)(3) would require appropriate mechanism and timing for encourages railroads to consider other railroads to consider developing and evaluating and updating railroads’ relevant factors based on developments implementing training, education, and FRMP plans. in fatigue science. The types of Proposed paragraph (b) of these outreach methods to deliver fatigue- principles and processes that inform a related information effectively to its sections would require a railroad to fatigue-risk analysis are well-established explain in its FRMP plan its method for safety-related railroad employees. At a and, as discussed in detail above and in minimum, a railroad must consider the analyzing fatigue risks and its the preamble of the SSP and RRP process(es) for implementing its FRMP. need to include employee education proposed rules, have been adopted into and training on the physiological and Proposed paragraphs (c) of these industry standards and described in sections would require railroads to human factors that affect fatigue and detail in other written resources. See 77 strategies to reduce or mitigate the submit their FRMP plans to FRA for FR 55375 and 80 FR 10953. For approval either within six months of effects of fatigue based on the most example, as discussed in those current scientific and medical research publication of a final rule in this 43 preambles, MIL–STD–882, APTA’s and literature. If a railroad chooses to proceeding or within the applicable Manual for the Development of System existing timelines in parts 270 and 271 include these subjects in its training, Safety Program Plans for Commuter this training would supplement the for filing SSP or RRP plans. These 44 Railroads, and FRA’s Collision Hazard requirement in 49 CFR part 243 to paragraphs would also require railroads Analysis Guide: Commuter and Intercity to follow the existing processes in parts develop minimum training standards for Passenger Rail Service discuss how to each occupational category that 270 and 271 for submitting updates of conduct risk analyses in detail.45 A their FRMP plans to FRA for approval. includes a list of the Federal railroad railroad subject to this part could use safety laws, regulations, and orders that Proposed paragraph (d) would require any of these resources when developing FRA to approve or disapprove railroads’ an employee is required to comply with and conducting a fatigue-risk analysis. by adding employee fatigue education FRMP plans (and any updates) under FRA requests public comment as to the existing approval processes in parts and training topics that relate to whether additional resources are employee safety independent of any 270 and 271 applicable to FRA approval necessary to help railroads comply with of railroad SSP plans and RRP plans. regulatory or statutory requirements. Paragraph (d) proposes requirements 43 Sections 270.407 and 271.607— Department of Defense, Standard practice for a railroad to develop and implement Requirements for an FRMP system safety, (MIL–STD–882E) (2012), retrieved from https://www.dau.edu/cop/armyesoh/ procedures and processes for Proposed §§ 270.407 and 271.607 set DAU%20Sponsored%20Documents/MIL-STD- monitoring and evaluating its FRMP. forth the proposed requirements for 882E.pdf (last accessed on July 27, 2020). Monitoring and evaluation are necessary railroads’ FRMPs. As proposed, 44 https://www.trbtss.org/wp-content/uploads/ parts of a railroad’s FRMP; they enable 2016/03/APTA-Safety-Management-System- paragraph (a) of these sections sets forth Manual.pdf (last accessed on July 27, 2020). a railroad to determine whether the 45 https://www.fra.dot.gov/eLib/Details/L03191 FRMP is effectively reducing the 42 See 49 CFR 270.407(c) and 271.607(c). (last accessed on July 27, 2020). numbers and rates of railroad accidents,

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incidents, injuries, and fatalities where how the railroad will implement its later. FRA will review the railroads’ fatigue is a contributing factor. FRMP. As proposed, a railroad may FRMP plans under the amendment implement its FRMP in stages, provided process in § 270.201(c)(2) or 271.303(c). Sections 270.409 and 271.609— the FRMP is fully implemented and Requirements for a FRMP Plan VI. Regulatory Impact and Notices operational within 36 months of FRA’s Proposed §§ 270.409 and 271.609 approval of the plan. This A. Executive Order 12866 and DOT would require a railroad to adopt and implementation plan would cover the Regulatory Policies and Procedures implement its FRMP through an FRMP entire implementation period and This proposed rule is a non- plan that meets certain requirements. As contain a timeline (beginning with the proposed, paragraph (a) of these significant regulatory action within the date FRA approves the railroad’s FRMP meaning of Executive Order 12866 (E.O. sections would require railroads to plan) describing when the railroad will 12866) and DOT’s Administrative develop their FRMP plans in achieve specific and measurable Rulemaking, Guidance, and consultation with directly-affected implementation milestones. employees and FRA would have to Consistent with 49 CFR Enforcement Procedures in 49 CFR part approve a railroad’s FRMP. The existing 270.103(p)(2)(i) and 49 CFR 5. FRA has prepared and placed a consultation and approval processes of 271.203(b)(3), as part of the Regulatory Evaluation addressing the parts 270 and 271 would apply. implementation description, proposed Proposed paragraph (b) would require paragraph (d)(1) would require a economic impact of this proposed rule the FRMP plan to describe specific, railroad to include a description of the in the docket (Docket No. FRA–2015– fatigue-related goals of the FRMP and roles and responsibilities of each 0122). The Regulatory Evaluation clear strategies for attaining those goals. position or job function with significant contains estimates of the costs and Proposed paragraph (c) addresses the responsibility for implementing the benefits of this proposed rule that are methods a railroad uses to develop its railroad’s FRMP (including any likely to be incurred over a ten-year FRMP plan. Proposed paragraph (c)(1) positions or job functions held by an period. FRA estimated the costs and would require an FRMP plan to describe entity or contractor that provides benefits of this proposed rule using the railroad’s method(s) for conducting significant FRMP services for the discount rates of 3 and 7 percent. FRA the fatigue-risk analysis as part of its railroad). was unable to quantify the costs and FRMP.46 While FRA understands that Consistent with 49 CFR 271.225(b)(2), benefits for all the elements within the railroads subject to a final FRMP rule proposed paragraph (d)(2) would proposed regulation for both passenger would likely need to develop processes require a railroad to include a and freight railroads. FRA presents unique to their own operations, FRA description of the planned timeline for monetized costs and benefits where expects that railroads’ fatigue-risk meeting the milestones required for the possible and discusses those non- analysis processes will use techniques FRMP plan to be fully implemented. quantified elements qualitatively where similar to those currently used in other Proposed paragraphs (d)(3) and (d)(4) data was lacking. safety management systems. This would require a railroad to describe Section 103 of the RSIA mandates that section also specifies information how it will make significant changes to FRA (as delegated by the Secretary) railroads must include in an FRMP the FRMP, and procedures for require certain railroads to establish a plan’s description of a railroad’s fatigue- consultation with directly affected railroad safety risk reduction program, risk analysis. FRA requests comment on employees on substantive amendments of which an FRMP is a required whether additional resources are to the FRMP plan. component. This proposed rule is part necessary to help railroads comply with Proposed paragraph (e) would require of FRA’s efforts to improve rail safety the requirements of this proposed that a railroad submit its FRMP plan to continually and to satisfy the statutory section and if so, what type of resources FRA by amending its SSP plan or RRP mandate in the RSIA. would be helpful. plan. Since this proposed rule would be FRA anticipates railroads will Proposed paragraph (c)(2) would published as a final rule after the SSP develop and implement mitigation require an FRMP plan to describe the and RRP final rules are in effect and strategies that are either cost-beneficial railroad’s processes for identifying and railroads have submitted their SSP or cost-neutral to the railroad. FRA selecting mitigation strategies, and for plans or RRP plans to FRA under part requests public comment on this monitoring identified hazards while the 270, subpart C, or part 271, subpart D, assumption. FRA is particularly risk associated with the hazard is being railroads would need to amend their interested in the experience of railroads mitigated. SSP plans or RRP plans to include an that have already utilized mitigation Proposed paragraph (c)(3) would FRMP plan. Thus, as proposed, a strategies to reduce the risk of the require an FRMP plan to describe a railroad would follow the procedures in exposure of safety-related railroad railroad’s processes for monitoring and § 270.201(c) or 271.303 to amend its SSP employees to fatigue-related railroad evaluating the overall effectiveness of plan or RRP plan. FRA proposes that an safety hazards on their systems; the FRMP and the mitigation strategies, FRMP plan is not considered a safety- specifically, whether the railroads have along with procedures for reviewing and critical amendment of an SSP plan for realized costs and benefits from the updating the FRMP. As noted above, the purposes of § 270.201(c)(1)(ii), so a development and implementation of FRA anticipates this review will be the railroad should be able to submit the such mitigation strategies, and how same as for the overall SSP or RRP. FRMP plan to FRA as an amendment to much those strategies cost the railroads Proposed paragraph (d) of this section its SSP plan or RRP plan 60 days before to implement. would require an FRMP plan to describe the proposed effective date of the FRMP The Regulatory Evaluation analyzes plan. If a railroad is initially not two mitigation strategies to quantify 46 As previously discussed, railroads could look to well-established safety management systems required to submit an SSP plan or RRP potential costs and benefits that which describe processes for conducting a fatigue- plan, but is later required to, the railroads may achieve through the risk analysis, such as MIL–STD–882, APTA’s railroad must include an FRMP plan as proposed regulation: Training and Manual for the Development of System Safety part of its SSP plan or RRP plan screening for sleep conditions. Program Plans for Commuter Railroads, and FRA’s Collision Hazard Analysis Guide: Commuter and submission to FRA, or submit the FRMP However, since the proposed regulation Intercity Passenger Rail Service. plan by August 19, 2021, whichever is gives railroads the flexibility to select

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the mitigation strategies that would and benefit estimates, specifically The costs and benefits 47 associated work best for them rather than pertaining to the training mitigation, as with the proposed rule are presented in prescribing standards, there is a high FRA is unsure how railroads will Table VI–1 below: amount of uncertainty in FRA’s costs implement the various mitigations.

TABLE VI–1—SUMMARY OF TOTAL 10-YEAR IMPACT (2018 Dollars) [In millions]

Present value Present value Annualized at Annualized at Calculation aid Costs 7% 3% 7% 3%

A ...... Training Only (low)...... $2.02 $2.04 $0.29 $0.24 B ...... Training Only (high) ...... 4.13 4.18 0.59 0.49 C ...... FRMP Plan Creation ...... 0.89 1.04 0.13 0.12 D ...... Government Costs ...... 2.03 2.59 0.29 0.30 A + C + D ...... Total Cost (low) ...... 4.94 5.68 0.70 0.67 B + C + D ...... Total Cost (high) ...... 7.05 7.81 1.00 0.92 A + C ...... Total Cost w/o Government Costs 2.91 3.08 0.41 0.36 (low). B + C ...... Total Cost w/o Government Costs 5.01 5.22 0.71 0.61 (high). Benefits Training Only (low) ...... 5.41 6.33 0.77 0.74 Training Only (high) ...... 21.65 25.34 3.08 2.97

FRA is interested in comments FRA does not present the findings the rule will have a significant addressing the Regulatory Evaluation’s regarding napping in the main analysis economic impact on small entities. methodology for establishing the of the Regulatory Evaluation. Despite 1. Reasons FRA Is Considering the accident pool used to calculate benefits the uncertainty, FRA believes that there Proposed Rule as well as establish the effectiveness could be significant reduction in fatigue rates of mitigations. Specifically, FRA with the implementation of a napping FRA is initiating this NPRM pursuant seeks public input on the studies used mitigation. Not only do various studies to 49 U.S.C. 20156, which provides that to establish the effectiveness rates and support the idea that napping reduces FRA, by delegation from the Secretary, the use of all human factor accidents fatigue, but a large number of Class I shall require certain railroads to develop within the benefit pool. As the proposed railroads already have policies and implement an FRMP as part of regulation does not specifically require supporting napping, which suggests that either their SSP or RRP. railroads to implement specific the benefits outweigh the costs for those 2. Objectives and the Legal Basis for the mitigations, but rather allows railroads railroads. Proposed Rule to implement the mitigation that best addresses their specific fatigue risks, B. Regulatory Flexibility Act and This NPRM proposes to implement FRA requests comments on any costs Executive Order 13272; Initial the FRMP element of the statutory and benefits that might be associated Regulatory Flexibility Assessment mandate by requiring each Class I with the elements that FRA was unable freight railroad, each railroad that to quantify. The Regulatory Flexibility Act of 1980 provides intercity rail passenger FRA’s analysis shows there are many (5 U.S.C. 601 et seq.) and Executive transportation or commuter rail factors that are difficult to quantify both Order 13272 (67 FR 53461, Aug. 16, passenger transportation, and each ISP for passenger and freight railroads. 2002) require agency review of proposed railroad to develop and implement an Where possible, FRA’s Regulatory and final rules to assess their impacts on FRMP as one component of a larger Evaluation estimates costs and benefits small entities. An agency must prepare railroad safety RRP or SSP. A detailed for each element within the proposed an Initial Regulatory Flexibility discussion of the objectives and legal regulation. FRA also requests comments Analysis (IRFA) unless it determines basis for the proposed rule is provided on the elements that are qualitatively and certifies that a rule, if promulgated, in Section III of the preamble. discussed. Given current railroad would not have a significant economic 3. Description and Estimate of the business and operational practices, this impact on a substantial number of small Number of Small Entities Affected analysis demonstrates the fatigue entities. FRA is publishing this IRFA to training element, an element that all aid the public in commenting on the The Regulatory Flexibility Act of 1980 railroads will most likely implement, potential small business impacts of the (5 U.S.C. 601, et seq.) requires a review may be cost effective. FRA also believes requirements in this NPRM. FRA invites of proposed and final rules to assess the napping mitigation presented within all interested parties to submit data and their impact on small entities, unless the Regulatory Evaluation’s alternative information regarding the potential the Secretary certifies that the rule analysis could be cost beneficial. economic impact on small entities that would not have a significant economic However, given the uncertainty would result from the adoption of the impact on a substantial number of small surrounding the use of alertness as a proposals in this NPRM. FRA will entities. ‘‘Small entity’’ is defined in 5 measure of reduced fatigue, in an effort consider all information, including U.S.C. 601 as a small business concern to not overestimate the benefits comments received in the public that is independently owned and associated with the proposed regulation, comment process, to determine whether operated, and is not dominant in its

47 Unless otherwise noted, costs and benefits are presented in 2018 dollars.

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field of operation. The U.S. Small Alaska Railroad Corporation (ARC).51 screening for sleep disorders could Business Administration (SBA) has Neither of the intercity passenger include costs that are higher. authority to regulate issues related to railroads is considered a small entity. While FRA is unable to identify the small businesses, and stipulates in its Amtrak serves populations well in specific railroads that would be size standards that a ‘‘small entity’’ in excess of 50,000, and the ARC is owned considered ISPs, to estimate the the railroad industry is a for-profit by the State of Alaska, which has a potential impact that developing an ‘‘line-haul railroad’’ that has fewer than population well in excess of 50,000. FRMP would have on an ISP railroad, 1,500 employees, a ‘‘short line railroad’’ Based on the definition of ‘‘small FRA used the average Class III revenue 52 with fewer than 500 employees, or a entity,’’ only one commuter or other to estimate the impact. Per the ‘‘commuter rail system’’ with annual short-haul passenger railroad is American Short Line and Regional receipts of less than seven million considered a small entity: The Hawkeye Railroad Association (ASLRRA), the dollars. See ‘‘Size Eligibility Provisions Express (operated by the Iowa Northern average Class III railroad has an annual and Standards,’’ 13 CFR part 121, Railway Company). average revenue of $4.75 million. FRA subpart A. In addition, section 601(5) of estimated the annual cost to ISP The impact of the proposed regulation the Small Business Act defines ‘‘small railroads at $60,052, with approximately on these small entities is unknown, entities’’ as governments of cities, five ISP railroads incurring this cost per counties, towns, townships, villages, since FRA is allowing the railroads to year. The $60,052 cost consists of an school districts, or special districts with decide their fatigue mitigations based on annual average of $53,228 53 for FRMP populations less than 50,000 that their specific needs instead of program development and $7,274 for operate railroads. mandating that railroads adopt specific employee training.54 The total 10-year Federal agencies may adopt their own mitigation programs. Furthermore, FRA cost that would impact a single ISP size standards for small entities in estimates that only 50 ISP railroads railroad would be $121,004.55 The consultation with SBA and in would be impacted by the proposed annual cost represents approximately conjunction with public comment. regulation, which is approximately 7 2.5 percent of the average Class III Thus, in consultation with SBA, FRA percent of small entities, assuming all railroad’s revenue.56 However, as this has published a final statement of the 50 ISP railroads are considered estimate is based off of the average agency policy that formally establishes small entities. FRA estimates that the 50 annual Class III railroad revenue, and ‘‘small entities’’ or ‘‘small businesses’’ ISP railroads would be impacted over there could be a large variance in the as railroads, contractors, and shippers the course of 10 years, at a rate of revenue of Class III railroads, FRA that meet the revenue requirements of a approximately 5 ISPs per year. This requests comments regarding the annual Class III railroad 48—$20 million or less estimate is consistent with the RRP final revenue of Class III railroads as well as in inflation-adjusted annual revenue— rule that FRA has published. Therefore, the impact the proposed regulation and commuter railroads or small because of the uncertainty surrounding would have on Class III railroads. government jurisdictions that serve both the number of ISP railroads that FRA has identified several possible populations of 50,000 or less.49 would be considered small entities as reporting and recordkeeping costs The universe of entities this NPRM well as the impact that the proposed associated with the proposed regulation would affect includes only those small regulation would have on those small such as: entities that can reasonably be expected entities, the impact that the NPRM (1) Development, submission to FRA, to be directly affected by the provisions would have on small entities is unclear. and recordkeeping of the FRMP plan; of this rule. In this case, the universe FRA requests comments about the (2) identification of the specific consists of railroads that would be impact that the proposed regulation fatigue risks that impact the specific subject to the requirements under 49 would have on both freight and ISP; and CFR part 270 and under the RRP rule. passenger rail small entities. (3) recordkeeping associated with For the purposes of this analysis, 736 fatigue training. 4. Description of the Projected railroads would be considered ‘‘small More information about the burden Reporting, Recordkeeping, and Other entities,’’ since they are Class III freight and associated costs for each of the Requirements railroads. Of the 736 small entities, 695 projected reporting, recordkeeping, and are on the general system and could be The rule will require an ISP railroad other requirements can be found in the potentially impacted by the proposed to develop and implement an FRMP information collection request FRA will regulation.50 Since FRA does not under an RRP or SSP plan that FRA has be submitting to the Office of currently know which railroads will be reviewed and approved. There are Management and Budget (OMB) under considered ISP railroads, but an ISP several reporting and recordkeeping the Paperwork Reduction Act of 1995, railroad could be either a Class II or costs associated with the proposed 44 U.S.C. 3501, et seq. FRA requests Class III railroad, FRA is unable to regulation. Since the railroads have the comments regarding the recordkeeping provide a more accurate impact that the flexibility to adjust their FRMPs to their proposed regulation would have on 52 The Class II and Class III average costs per specific risks, these costs will vary railroad come from the 2015 Edition of the ASLRRA small entities. based on the respective risks as well as Facts and Figures. For purposes of this analysis, this the size of the ISP railroad. While FRA 53 An average is used to better account for the proposed rule will apply to 35 is unable to estimate the burden that the impact as the cost schedule varies as the number commuter or other short-haul passenger of ISP railroads increases. See the RIA in the docket proposed regulation would have on for more information on the cost structure for ISP railroads and two intercity passenger small entities, FRA expects that the railroads, the National Railroad railroads. impact will be proportional to the 54 Calculation: $53,228 (program development Passenger Corporation (Amtrak) and the number of employees as well as the cost) + $7,274 (ISP employee training costs) = mitigation strategy that is implemented. $60,052 (Annual cost for 5 ISP railroads). 48 55 See 49 CFR 1201.1. Other mitigation strategies such as Calculation: ([$60,052/5 (ISP railroads)] 49 See 68 FR 24891 (May 9, 2003) (codified at (annual cost to ISP)) × 10 (number of years) = Appendix C to 49 CFR part 209). $121,004 (10-year cost to single ISP railroad). 50 Both the SSP rule and RRP rule exempts 51 There are State-sponsored intercity passenger 56 Calculation: $121,004 (annual cost to ISP)/ railroads not on the general system. See 49 CFR rail services, the majority of which will be part of $4,750,000 (average annual Class III revenue) = 270.3(b) and 49 CFR 271.3(b). Amtrak’s SSP. 0.025 or 2.5 percent.

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burden that the proposed regulation would result from adoption of the FRA is not aware of any State with would have on ISP railroads to ensure proposals in this NPRM. FRA will regulations similar to this proposed that all cost elements of recordkeeping consider all comments received in the rule. However, FRA notes that this part and how those elements would impact public comment process when making a could have preemptive effect by the Class III railroads are captured. determination. operation of law under 49 U.S.C. 20106. Section 20106 provides that States may 5. Identification of Relevant Federal C. Federalism not adopt or continue in effect any law, Rules That May Duplicate, Overlap, or Executive Order 13132, ‘‘Federalism’’ regulation, or order related to railroad Conflict With the Proposed Rule (64 FR 43255, Aug. 10, 1999), requires safety or security that covers the subject While the proposed FRMP rule would FRA to develop an accountable process matter of a regulation prescribed or be a component of the RRP and SSP to ensure ‘‘meaningful and timely input order issued by the Secretary of rules, the proposed FRMP would by State and local officials in the Transportation (with respect to railroad specifically address fatigue-related risks development of regulatory policies that safety matters), unless the State law, and is aimed at mitigating those risks have federalism implications.’’ The regulation, or order (1) qualifies under specifically. As such, there will be some Executive Order defines ‘‘policies that the ‘‘essentially local safety or security coordination needed to ensure that a have federalism implications’’ to hazard’’ exception to sec. 20106; (2) is railroad’s FRMP is developed and include regulations that have not incompatible with a law, regulation, worked into the railroad’s RRP or SSP. ‘‘substantial direct effects on the States, or order of the U.S. Government; and (3) Regardless, considering that the on the relationship between the national does not unreasonably burden interstate proposed FRMP is a subpart within both government and the States, or on the commerce. RRP and SSP, neither RRP nor SSP distribution of power and In sum, FRA analyzed this proposed provide any elements, outside of the responsibilities among the various rule consistent with the principles and proposed regulation, that are designed levels of government.’’ Under Executive criteria in Executive Order 13132. FRA to mitigate fatigue related risk Order 13132, the agency may not issue has determined this proposed rule has specifically. As such, FRA does not a regulation with federalism no federalism implications and has expect there to be any relevant Federal implications that imposes substantial determined it is not required to prepare rules that would duplicate, overlap direct compliance costs and that is not a federalism summary impact statement with, or conflict with the proposed required by statute, unless the Federal for this proposed rule. regulations in this NPRM. Government provides the funds necessary to pay the direct compliance D. International Trade Impact 6. Significant Regulatory Alternatives costs incurred by State and local Assessment Within the preamble above, FRA governments or the agency consults The Trade Agreement Act of 1979 outlines the various fatigue risks that with State and local government prohibits Federal agencies from railroads need to address. FRA does not officials early in the process of engaging in any standards or related specifically state, however, in what developing the regulation. Where a activities that create unnecessary manner the railroads must address those regulation has federalism implications obstacles to the foreign commerce of the risks. One alternative is for railroads to and preempts State law, the agency United States. Legitimate domestic not create an FRMP and to continue to seeks to consult with State and local objectives, such as safety, are not address their fatigue risks as they have officials in the process of developing the considered unnecessary obstacles. The currently been doing. This would result regulation. Act also requires consideration of in the railroads violating the RSIA FRA analyzed this NPRM consistent international standards, and, where mandate. In addition, if railroads with the principles and criteria appropriate, that they be the basis for continue to address their fatigue risks as contained in Executive Order 13132. U.S. standards. This rulemaking is they have in the past, FRA expects that FRA has determined the proposed rule purely domestic in nature and will not safety would continue to be negatively would not have substantial direct effects affect trade opportunities for U.S. firms impacted because the fatigue risks are on States, on the relationship between doing business overseas or for foreign not adequately addressed currently. the national government and States, or firms doing business in the United Since railroads have some flexibility in on the distribution of power and States. how they design their FRMPs, it is responsibilities among the various expected that the impact of each FRMP levels of government. In addition, FRA E. Paperwork Reduction Act on a railroad will be minimal as the has determined this proposed rule The information collection flexibility in implementing mitigations would not impose substantial direct requirements in this proposed rule are will most likely be done in a cost compliance costs on State and local being submitted for approval to the effective manner. FRA expects that governments. Therefore, the Office of Management and Budget railroads will consider the cost of the consultation and funding requirements (OMB) under the Paperwork Reduction mitigation as well as the fatigue risks of Executive Order 13132 do not apply. Act of 1995, 44 U.S.C. 3501, et seq. The when creating their FRMPs. This NPRM proposes to add subpart sections that contain the new FRA invites all interested parties to E, Fatigue Management Plans, to 49 CFR information collection requirements and submit data and information regarding part 270 and subpart G, Fatigue the estimated time to fulfill each the potential economic impact that Management Plans, to 49 CFR part 271. requirement are as follows:

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Average time Total annual Total annual CFR section/subject Respondent universe Total annual responses per response burden hours dollar cost (hours) equivalent 57

270.409—Fatigue Risk Management 35 passenger railroads .. 12 plans ...... 60 720 $63,144 Program Plan (FRMP Plan) as part of its SSP—Comprehensive FRMP plan meeting all of this section’s re- quirements and under Part 270 subpart C. —(c)(3)(ii)—Annual internal FRMP 35 passenger railroads .. 12 evaluations/reports ... 2 24 1,824 Plan assessments/reports con- ducted by RRs. —FRMP plans found deficient by FRA 35 passenger railroads .. 4 amended plans ...... 30 120 9,588 and requiring amendment. —Review of amended FRMP plans 35 passenger railroads .. 1 further amended plan 15 15 1,199 found deficient and requiring further amendment by RRs. —Consultation requirements—RR 35 passenger railroads .. 12 consultations (w/labor 1.5 18 1,368 consultation with its directly affected union reps.). employees on FRMP Plan. 271.609—Fatigue Risk Management 7 Class I railroads ...... 2 plans ...... 90 180 15,786 Program Plan (FRMP Plan) as part 15 ISP railroads ...... 5 plans ...... 50 250 21,925 of its RRP—Comprehensive written FRMP Plan meeting all of this sec- tion’s requirements and under Part 271 subpart d. —(c)(3)(ii)—Annual internal FRMP 7 Class I + 15 ISP rail- 7 evaluations/reports ..... 2 14 1,064 Plan assessments/reports con- roads. ducted by RRs. —Consultation requirements—RR 7 Class I railroads ...... 2 consultations (w/labor 1.5 3 228 consultation with its directly affected union reps.). employees on FRMP Plan. 15 ISP railroads ...... 5 consultations (w/labor 1 5 380 union reps.). —FRMP plans found deficient by FRA 7 Class I railroads ...... 1 amended plan ...... 40 40 3,196 and requiring amendment. 15 ISP railroads ...... 3 amended plans ...... 20 60 4,794 —Review of amended FRMP plans 7 Class I railroads ...... 1 further amended plan 20 20 1,598 found deficient and requiring further amendment by RRs. 15 ISP railroads ...... 2 further amended plans 10 20 1,598

Totals ...... 35 railroads ...... 69 responses ...... N/A 1,489 127,692

All estimates include the time for information or a copy of the paperwork control number, if required. FRA reviewing instructions; searching package submitted to OMB, contact Ms. intends to obtain current OMB control existing data sources; gathering or Hodan Wells, Information Collection numbers for any new information maintaining the needed data; and Clearance Officer, Federal Railroad collection requirements resulting from reviewing the information. Pursuant to Administration, at 202–493–0440. this rulemaking action prior to the 44 U.S.C. 3506(c)(2)(B), FRA solicits Organizations and individuals effective date of the final rule. The OMB comments concerning: Whether these desiring to submit comments on the control number, when assigned, will be information collection requirements are collection of information requirements announced by separate notice in the necessary for the proper performance of should direct them to Ms. Hodan Wells Federal Register. the functions of FRA, including whether via email at [email protected]. F. Environmental Assessment the information has practical utility; the OMB is required to make a decision accuracy of FRA’s estimates of the concerning the collection of information FRA has evaluated this proposed rule burden of the information collection requirements contained in this proposed consistent with the National requirements; the quality, utility, and rule between 30 and 60 days after Environmental Policy Act (NEPA; 42 clarity of the information to be publication of this document in the U.S.C. 4321, et seq.), the Council of collected; and whether the burden of Federal Register. Therefore, a comment Environmental Quality’s NEPA collection of information on those who to OMB is best assured of having its full implementing regulations at 40 CFR are to respond, including through the effect if OMB receives it within 30 days parts 1500–1508, and FRA’s NEPA use of automated collection techniques of publication. The final rule will implementing regulations at 23 CFR part or other forms of information respond to any OMB or public 771 and determined that it is technology, may be minimized. For comments on the information collection categorically excluded from requirements contained in this proposal. environmental review and therefore 57 The dollar equivalent cost is derived from the FRA is not authorized to impose a does not require the preparation of an 2018 Surface Transportation Board’s Full Year Wage A&B data series using the appropriate penalty on persons for violating environmental assessment (EA) or employee group hourly wage rate that includes 75- information collection requirements environmental impact statement (EIS). percent overhead charges. which do not display a current OMB Categorical exclusions (CEs) are actions

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identified in an agency’s NEPA including interrelated social and action’’ under the Executive Order implementing regulations that do not economic effects, of their programs, 13211. normally have a significant impact on policies, and activities on minority J. Privacy Act Statement the environment and therefore do not populations and low-income require either an EA or EIS. See 40 CFR populations. The DOT Order instructs In accordance with 5 U.S.C. 553(c), 1508.4. Specifically, FRA has DOT agencies to address compliance DOT solicits comments from the public determined that this proposed rule is with Executive Order 12898 and to better inform its rulemaking process. categorically excluded from detailed requirements within the DOT Order in DOT posts these comments, without environmental review pursuant to 23 rulemaking activities, as appropriate, edit, to www.regulations.gov, as CFR 771.116(c)(15), ‘‘[p]romulgation of and also requires consideration of the described in the system of records rules, the issuance of policy statements, benefits of transportation programs, notice, DOT/ALL–14 FDMS, accessible the waiver or modification of existing policies, and other activities where through www.dot.gov/privacy. In order regulatory requirements, or minority populations and low-income to facilitate comment tracking and discretionary approvals that do not populations benefit, at a minimum, to response, we encourage commenters to result in significantly increased the same level as the general population provide their name, or the name of their emissions of air or water pollutants or as a whole when determining impacts organization; however, submission of noise.’’ on minority and low-income names is completely optional. Whether The purpose of this rulemaking is to populations. FRA has evaluated this or not commenters identify themselves, propose requirements for certain proposed rule under Executive Order all timely comments will be fully railroads to develop and implement an 12898 and the DOT Order and has considered. If you wish to provide FRMP, as one component of the determined it would not cause comments containing proprietary or railroads’ larger railroad safety risk disproportionately high and adverse confidential information, please contact reduction programs. This rule does not human health and environmental effects the agency for alternate submission directly or indirectly impact any on minority populations or low-income instructions. populations. environmental resources and will not List of Subjects result in significantly increased H. Unfunded Mandates Reform Act of emissions of air or water pollutants or 1995 49 CFR Part 270 noise. Instead, the proposed rule is Fatigue, Penalties, Railroad safety, likely to result in safety benefits. In Under Section 201 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. Reporting and recordkeeping analyzing the applicability of a CE, FRA 1531), each Federal agency ‘‘shall, requirements, System safety. must also consider whether unusual unless otherwise prohibited by law, circumstances are present that would 49 CFR Part 271 assess the effects of Federal regulatory warrant a more detailed environmental actions on State, local, and tribal Fatigue, Penalties, Railroad safety, review. See 23 CFR 771.116(b). FRA has governments, and the private sector Reporting and recordkeeping concluded that no such unusual (other than to the extent that such requirements, Risk reduction. circumstances exist with respect to this regulations incorporate requirements proposed regulation and the proposal The Proposed Rule specifically set forth in law).’’ Section meets the requirements for categorical For the reasons discussed in the 202 of the Act (2 U.S.C. 1532) further preamble, FRA proposes to amend exclusion under 23 CFR 771.116(c)(15). requires that ‘‘before promulgating any chapter II, subtitle B of title 49, Code of Pursuant to Section 106 of the general notice of proposed rulemaking National Historic Preservation Act and that is likely to result in the Federal Regulations as follows: its implementing regulations, FRA has promulgation of any rule that includes determined this undertaking has no PART 270—SYSTEM SAFETY any Federal mandate that may result in PROGRAM potential to affect historic properties. expenditure by State, local, and tribal See 16 U.S.C. 470. FRA has also governments, in the aggregate, or by the ■ determined that this rulemaking does 1. The authority citation for part 270 private sector, of $100,000,000 or more continues to read as follows: not approve a project resulting in a use (adjusted annually for inflation) in any Authority: 49 U.S.C. 20103, 20106–20107, of a resource protected by Section 4(f). 1 year, and before promulgating any See Department of Transportation Act of 20118–20119, 20156, 21301, 21304, 21311; final rule for which a general notice of 28 U.S.C. 2461, note; and 49 CFR 1.89. 1966, as amended (Pub. L. 89–670, 80 proposed rulemaking was published, ■ Stat. 931); 49 U.S.C. 303. the agency shall prepare a written 2. Section 270.103(a)(1) is revised to read as follows: G. Executive Order 12898 statement’’ detailing the effect on State, (Environmental Justice) local, and tribal governments and the § 270.103 System safety program plan. private sector. This proposed rule will Executive Order 12898, Federal (a) General. (1) Each railroad subject not result in the expenditure, in the Actions to Address Environmental to this part shall adopt and fully aggregate, of $100,000,000 or more (as Justice in Minority Populations and implement a system safety program adjusted annually for inflation), in any Low-Income Populations, and DOT through a written SSP plan that, at a one year, and thus preparation of such Order 5610.2B 58 require DOT agencies minimum, contains the elements in this a statement is not required. to achieve environmental justice as part section and in subpart E of this part. of their mission by identifying and I. Energy Impact This SSP plan shall be approved by FRA addressing, as appropriate, Executive Order 13211 requires under the process specified in disproportionately high and adverse Federal agencies to prepare a Statement § 270.201. ■ human health or environmental effects, of Energy Effects for any ‘‘significant 3. Add subpart E to read as follows: energy action.’’ 66 FR 28355, May 22, 58 Subpart E—Fatigue Risk Management Available at: https://www.transportation.gov/ 2001. FRA evaluated this NPRM under regulations/dot-order-56102b-department- Programs transportation-actions-address-environmental- Executive Order 13211, and determined justice. this NPRM is not a ‘‘significant energy Sec.

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270.401 Definitions. risk of railroad accidents, incidents, must consider the following categories 270.403 Purpose and scope of a Fatigue injuries, and fatalities where the fatigue of risk factors: Risk Management Program (FRMP). of any of these employees is a (1) General health and medical 270.405 General requirements; procedure. contributing factor; conditions that can affect the fatigue 270.407 Requirements for an FRMP. (2) Develop its FRMP by levels among the population of safety- 270.409 Requirements for a FRMP plan. systematically identifying and related railroad employees; Subpart E—Fatigue Risk Management evaluating the fatigue-related railroad (2) Scheduling issues that can affect Programs safety hazards on its system, the opportunities of safety-related determining the degree of risk railroad employees to obtain sufficient § 270.401 Definitions. associated with each hazard, and quality and quantity of sleep; and As used in this subpart— managing those risks to reduce the (3) Characteristics of each job category Contributing factor means a fatigue that its safety-related railroad of safety-related railroad employees circumstance or condition that helps employees experience. This system- work that can affect fatigue levels and cause a result. wide fatigue risk identification and risk for fatigue of those employees. Fatigue means a complex state evaluation process must account for the (c) Mitigation strategies. A railroad characterized by a lack of alertness and varying circumstances of a railroad’s shall develop and implement mitigation reduced mental and physical operations on different parts of its strategies to reduce the risk of railroad performance, often accompanied by system; and accidents, incidents, injuries, and drowsiness. (3) Employ in its FRMP the fatigue fatalities where fatigue of any of its Fatigue-risk analysis means a risk mitigation strategies a railroad safety-related employees is a railroad’s analysis of its operations that: identifies as appropriate to address contributing factor. At a minimum, in (1) Identifies and evaluates the those varying circumstances. developing and implementing these fatigue-related railroad safety hazards mitigation strategies, a railroad shall on its system(s); and § 270.405 General requirements; consider the railroad’s policies, (2) Determines the degree of risk procedure. practices, and communication related to associated with each of those hazards. (a) Each railroad subject to this part its safety-related railroad employees. FRMP means a Fatigue Risk shall: (1) Policies. A railroad shall consider Management Program. (1) Establish and implement an FRMP developing and implementing policies FRMP plan means a Fatigue Risk as part of its SSP; and to reduce the risk of the exposure of its Management Program plan. (2) Establish an FRA-approved FRMP safety-related railroad employees to Safety-related railroad employee plan as a component of a railroad’s fatigue-related railroad safety hazards means: FRA-approved SSP plan and then on its system. At a minimum, a railroad (1) A person subject to 49 U.S.C. update its FRMP plan as necessary as shall consider these policies: 21103, 21104, or 21105; part of the annual internal assessment of (i) Providing opportunities for (2) Another person involved in its SSP under § 270.303. identification, diagnosis, and treatment railroad operations not subject to 49 (b) A railroad’s FRMP plan must of any medical condition that may affect U.S.C. 21103, 21104, or 21105; explain the railroad’s method of alertness or fatigue, including sleep (3) A person who inspects, installs, analysis of fatigue risks and the disorders; repairs or maintains track, roadbed, railroad’s process(es) for implementing (ii) Identifying methods to minimize signal and communication systems, and its FRMP. accidents and incidents that occur as a electric traction systems including a (c)(1) A railroad shall submit an result of working at times when roadway worker or railroad bridge FRMP plan to FRA for approval no later scientific and medical research have worker; than either the applicable timeline in shown increased fatigue disrupts (4) A hazmat employee defined under § 270.201(a) for filing its SSP plan or employees’ circadian rhythms; 49 U.S.C. 5102(3); [date six months after publication of the (iii) Developing and implementing (5) A person who inspects, repairs, or final rule in the Federal Register]. alertness strategies, such as policies on maintains locomotives, passenger cars, (2) A railroad shall submit updates to napping, to address acute drowsiness or freight cars; or its FRMP plan under the process for and fatigue while an employee is on (6) An employee of any person who amending its SSP plan in § 270.201(c). duty; utilizes or performs significant railroad (d) FRA shall review and approve or (iv) Increasing the number of safety-related services, as described in disapprove a railroad’s FRMP plan and consecutive hours of off-duty rest, § 270.103(d)(2), if that employee amendments to that plan under the during which an employee receives no performs a function identified in process for reviewing SSP plans and communication from the employing paragraphs (1) through (5) of this amendments in § 270.201(b) and (c), railroad or its managers, supervisors, definition. respectively. officers, or agents; and (v) Avoiding abrupt changes in rest § 270.403 Purpose and scope of a Fatigue § 270.407 Requirements for an FRMP. cycles for employees. Risk Management Program (FRMP). (a) In general. An FRMP shall include (2) Practices. A railroad shall consider (a) Purpose. The purpose of an FRMP an analysis of fatigue risks and developing and implementing is to improve railroad safety through mitigation strategies, as described in operational practices to reduce the risk structured, systematic, proactive paragraphs (b) and (c) of this section. of exposure of its safety-related railroad processes and procedures that a railroad (b) Analysis of fatigue risks. A employees to fatigue-related railroad subject to this part develops and railroad shall conduct a fatigue-risk safety hazards on its system. At a implements to identify and mitigate the analysis as part of its FRA-approved minimum, a railroad shall consider effects of fatigue on its employees. FRMP, which includes identification of these practices: (b) Scope. A railroad shall: fatigue-related railroad safety hazards, (i) Minimizing the effects on (1) Design its FRMP to reduce the assessment of the risks associated with employee fatigue of an employee’s fatigue its safety-related railroad those hazards, and prioritization of risks short-term or sustained response to employees experience and to reduce the for mitigation. At a minimum, a railroad emergency situations, such as

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derailments and natural disasters, or contain the elements described in this implement the FRMP fully will be engagement in other intensive working section. A railroad must submit the plan achieved. Implementation milestones conditions; to FRA for approval under the criteria shall be specific and measurable; (ii) Developing and implementing of subpart C. (3) A description of how a railroad scheduling practices for employees, (b) Goals. An FRMP plan must may make significant changes to the including innovative scheduling contain a statement that defines the FRMP plan under the process for practices, on-duty call practices, work specific fatigue-related goals of the amending its SSP plan in § 270.201(c); and rest cycles, increased consecutive FRMP and describes strategies for and days off for employees, changes in shift reaching those goals. (4) The procedures for consultation patterns, appropriate scheduling (c) Methods—(1) Analysis of fatigue with directly affected employees on any practices for varying types of work, and risk. An FRMP plan shall describe a subsequent substantive amendments to other aspects of employee scheduling to railroad’s method(s) for conducting its the railroad’s FRMP plan. The reduce employee fatigue and cumulative fatigue-risk analysis as part of its FRMP. requirements of this section do not sleep loss; and The description shall specify: apply to non-substantive amendments (iii) Providing opportunities to obtain (i) The scope of the analysis, which is (e.g., amendments that update names restful sleep at lodging facilities, the covered population of safety-related and addresses of railroad personnel). including employee sleeping quarters railroad employees; (e) Submittal. A railroad shall amend provided by the railroad carrier. (ii) The processes a railroad will use its SSP plan submitted under subpart C (3) Communications. A railroad shall to identify fatigue-related railroad safety of this part to include its FRMP plan consider developing and implementing hazards on its system and determine the that meets the requirements of this training, education, and outreach degree of risk associated with each section no later than August 19, 2021. methods to deliver fatigue-related fatigue-related hazard identified; (1) A railroad shall follow the information effectively to its safety- (iii) The processes a railroad will use procedures in § 270.201(c) to amend its related railroad employees. At a to compare and prioritize identified SSP plan. minimum, a railroad shall consider fatigue-related risks for mitigation (2) An FRMP plan is not considered including in its employee education and purposes; and a safety critical amendment for the training information on the (iv) The information sources a purposes of § 270.201(c)(ii). physiological and human factors that railroad will use to support ongoing (3) If a railroad was not required to affect fatigue, as well as strategies to identification of fatigue-related railroad submit an SSP plan initially, but is reduce or mitigate the effects of fatigue, safety hazards and determine the degree required to do so at a later date, the based on the most current scientific and of risk associated with those hazards. railroad shall either include an FRMP medical research and literature. (2) Mitigation strategies. An FRMP plan as part of its SSP plan submission (d) Evaluation. A railroad shall plan shall describe a railroad’s under § 270.201(a), or submit its FRMP develop and implement procedures and processes for: plan in accordance with the procedures processes for monitoring and evaluating (i) Identifying and selecting fatigue for amending its SSP plan under its FRMP to assess whether the FRMP risk mitigation strategies; and § 270.201(c) no later than August 19, effectively meets the goals its FRMP (ii) Monitoring identified fatigue- 2021, whichever is later. plan describes, as required under related railroad safety hazards. § 270.409(b). (3) Evaluation. An FRMP plan shall PART 271—RISK REDUCTION (1) The evaluation shall include, at a describe: PROGRAM (i) A railroad’s processes for minimum: ■ monitoring and evaluating the overall 4. The authority citation for part 271 (i) Periodic monitoring of the continues to read as follows: railroad’s operational environment to effectiveness of its FRMP and the detect changes that may generate new effectiveness of fatigue-related Authority: 49 U.S.C. 20103, 20106–20107, hazards; mitigation strategies the railroad uses 20118–20119, 20156, 21301, 21304, 21311; (ii) Analysis of the risks associated under § 270.407; and 28 U.S.C. 2461, note; and 49 CFR 1.89. with any identified hazards; and (ii) A railroad’s procedures for ■ 5. Amend § 271.101 by revising (iii) Periodic safety assessments to reviewing the FRMP as part of the paragraph (a) to read as follows: determine the need for changes to its annual internal assessment of its SSP mitigation strategies. under § 270.303 and for updating the § 271.101 Risk reduction programs. (2) A railroad shall evaluate newly- FRMP plan under the process for (a) Program required. Each railroad identified hazards, and hazards amending its SSP plan under shall establish and fully implement an associated with ineffective mitigation § 270.201(c). RRP meeting the requirements of this strategies, through processes for (d) FRMP implementation plan. A part. An RRP shall systematically analyzing fatigue risks described in the railroad shall describe in its FRMP plan evaluate railroad safety hazards on a railroad’s FRMP plan. how it will implement its FRMP. This railroad’s system and manage the (3) Any necessary changes not description must cover an resulting risks to reduce the number and addressed prior to a railroad’s annual implementation period not to exceed 36 rates of railroad accidents/incidents, internal assessment must be included in months, and shall include: injuries, and fatalities. An RRP is an the internal assessment improvement (1) A description of the roles and ongoing program that supports plans required under § 270.303. responsibilities of each position or job continuous safety improvement. A function with significant responsibility railroad shall design its RRP so that it § 270.409 Requirements for a FRMP plan. for implementing the FRMP, including promotes and supports a positive safety (a) In general. A railroad shall adopt those held by employees, contractors culture at the railroad. An RRP shall and implement its FRMP through an who provide significant FRMP-related include the following: FRA-approved FRMP plan, developed services, and other entities or persons (1) A risk-based hazard management in consultation with directly affected that provide significant FRMP services; program, as described in § 271.103; employees as described under (2) A timeline describing when (2) A safety performance evaluation § 270.107. A railroad FRMP plan must certain milestones that must be met to component, as described in § 271.105;

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(3) A safety outreach component, as signal and communication systems, and (c)(1) A railroad shall submit an described in § 271.107; electric traction systems including a FRMP plan to FRA for approval no later (4) A technology analysis and roadway worker or railroad bridge than either the applicable timeline in technology implementation plan, as worker; § 271.301(b) for filing its RRP plan or described in § 271.109; (4) A hazmat employee defined under [date six months after publication of the (5) RRP implementation and support 49 U.S.C. 5102(3); final rule in the Federal Register], training, as described in § 271.111; (5) A person who inspects, repairs, or whichever is later; and (6) Involvement of railroad employees maintains locomotives, passenger cars, (2) A railroad shall submit updates to in the establishment and or freight cars; or its FRMP plan under the process for implementation of an RRP, as described (6) An employee of any person who amending its RRP plan in § 271.303. in § 271.113; and utilizes or performs significant railroad (d) FRA shall review and approve or (7) An FRMP as described in safety-related services, as described in disapprove a railroad’s FRMP plan § 271.607. § 271.205(a)(3), if that employee under the process for reviewing RRP ■ 6. Section 271.201 is revised to read performs a function identified in plans in § 271.301(d) and updates to the as follows: paragraphs (1) through (5) of this railroad’s FRMP plan under the process definition. for reviewing amendments to an RRP § 271.201 General. § 271.603 Purpose and scope of a Fatigue plan in § 271.303(c). A railroad shall adopt and implement Risk Management Program (FRMP). its RRP through a written RRP plan § 271.607 Requirements for an FRMP. (a) Purpose. The purpose of an FRMP (a) In general. An FRMP shall include containing the elements described in is to improve railroad safety through this subpart and in § 271.609. A an analysis of fatigue risks and structured, proactive processes and mitigation strategies described in railroad’s RRP plan shall be approved procedures a railroad subject to this part by FRA according to the requirements paragraphs (b) and (c) of this section. develops and implements. A railroad’s (b) Analysis of fatigue risks. A contained in subpart D of this part. FRMP shall systematically identify and ■ 7. Add subpart G to read as follows: railroad shall conduct a fatigue-risk evaluate the fatigue-related railroad analysis as part of its FRA-approved Subpart G—Fatigue Risk Management safety hazards on its system, determine FRMP, which includes identification of Programs the degree of risk associated with each fatigue-related railroad safety hazards, hazard, and manage those risks to assessment of the risks associated with Sec. reduce the fatigue that its safety-related those hazards, and prioritization of risks 271.601 Definitions. railroad employees experience and to for mitigation. At a minimum, railroads 271.603 Purpose and scope of a Fatigue reduce the risk of railroad accidents, must consider the following categories Risk Management Program (FRMP). incidents, injuries, and fatalities where 271.605 General requirements; procedure. of risk factors, as applicable: the fatigue of any of these employees is (1) General health and medical 271.607 Requirements for an FRMP. a contributing factor. 271.609 Requirements for a FRMP plan. conditions that can affect the fatigue (b) Scope. A railroad shall: levels among the population of safety- (1) Design its FRMP to reduce the Subpart G—Fatigue Risk Management related railroad employees; Programs fatigue its safety-related railroad (2) Scheduling issues that can affect employees experience and to reduce the the opportunities of safety-related § 271.601 Definitions. risk of railroad accidents, incidents, railroad employees to obtain sufficient As used in this subpart— injuries, and fatalities where the fatigue quality and quantity of sleep; and Contributing factor means a of any of these employees is a (3) Characteristics of each job category circumstance or condition that helps contributing factor; safety-related railroad employees work (2) Develop its FRMP by conducting cause a result. that can affect fatigue levels and risk for a system-wide fatigue-risk analysis that Fatigue means a complex state fatigue of those employees. characterized by a lack of alertness and accounts for the varying circumstances (c) Mitigation strategies. A railroad reduced mental and physical of its operations on different parts of its shall develop and implement mitigation performance, often accompanied by system; and strategies to reduce the risk of railroad (3) Employ in its FRMP the fatigue drowsiness. accidents, incidents, injuries, and risk mitigation strategies the railroad Fatigue-risk analysis means a fatalities where fatigue of any of its identifies as appropriate to address railroad’s analysis of its operations that: safety-related employees is a those varying circumstances. (1) Identifies and evaluates the contributing factor. At a minimum, in fatigue-related railroad safety hazards § 271.605 General requirements; developing and implementing these on its system(s) and; procedure. mitigation strategies, a railroad shall (2) Determines the degree of risk (a) Each railroad subject to this part consider the railroad’s policies, associated with each of those hazards. shall: practices, and communications related FRMP means a Fatigue Risk (1) Establish and implement an FRMP to its safety-related railroad employees. Management Program. as part of its RRP; and (1) Policies. A railroad shall consider FRMP plan means a Fatigue Risk (2) Establish an FRA-approved FRMP developing and implementing policies Management Program plan. plan as a component of a railroad’s to reduce the risk of the exposure of its Safety-related railroad employee FRA-approved RRP plan and then safety-related railroad employees to means: update the FRMP plan as necessary as fatigue-related railroad safety hazards (1) A person subject to 49 U.S.C. part of the annual internal assessment of on its system. At a minimum, a railroad 21103, 21104, or 21105; its RRP under § 271.401. shall consider these policies: (2) Another person involved in (b) A railroad’s FRMP plan must (i) Providing opportunities for railroad operations not subject to 49 explain the railroad’s method of identification, diagnosis, and treatment U.S.C. 21103, 21104, or 21105; analysis of fatigue risks and the of any medical condition that may affect (3) A person who inspects, installs, railroad’s process(es) for implementing alertness or fatigue, including sleep repairs or maintains track, roadbed, its FRMP. disorders;

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(ii) Identifying methods to minimize (1) The evaluation shall include, at a (i) A railroad’s processes for accidents and incidents that occur as a minimum: monitoring and evaluating the overall result of working at times when (i) Periodic monitoring of the effectiveness of its FRMP and the scientific and medical research have railroad’s operational environment to effectiveness of fatigue-related shown increased fatigue disrupts detect changes that may generate new mitigation strategies the railroad uses employees’ circadian rhythms; hazards; under § 271.607; and (iii) Developing and implementing (ii) Analysis of the risks associated (ii) A railroad’s procedures for alertness strategies, such as policies on with any identified hazards; and reviewing the FRMP as part of the (iii) Periodic safety assessments to napping, to address acute drowsiness annual assessment of its RRP under determine the need for changes to its and fatigue while an employee is on § 271.401 and for updating the FRMP duty; mitigation strategies. (2) A railroad shall evaluate newly- plan under the process for amending its (iv) Increasing the number of RRP plan under § 271.303. consecutive hours of off-duty rest, identified hazards, and hazards during which an employee receives no associated with ineffective mitigation (d) FRMP implementation plan. A communication from the employing strategies, through processes for railroad shall describe in its FRMP plan railroad or its managers, supervisors, analyzing fatigue risks described in the how it will implement its FRMP. This officers, or agents; and railroad’s FRMP plan. description must cover an (v) Avoiding abrupt changes in rest (3) Any necessary changes not implementation period not to exceed 36 cycles for employees. addressed prior to a railroad’s annual months, and shall include: (2) Practices. A railroad shall consider internal assessment must be included in (1) A description of the roles and developing and implementing the internal assessment improvement responsibilities of each position or job operational practices to reduce the risk plans required under § 271.403. function with significant responsibility for implementing the FRMP, including of exposure of its safety-related railroad § 271.609 Requirements for a FRMP plan. employees to fatigue-related railroad those held by employees, contractors (a) In general. A railroad shall adopt safety hazards on its system. At a who provide significant FRMP-related and implement its FRMP through an minimum, a railroad shall consider services, and other entities or persons FRA-approved FRMP plan, developed these practices: that provide significant FRMP services; (i) Minimizing the effects on in consultation with directly affected employees as described under (2) A timeline describing when employee fatigue of an employee’s certain milestones that must be met to short-term or sustained response to § 271.207. A railroad FRMP plan must contain the elements described in this implement the FRMP fully will be emergency situations, such as achieved. Implementation milestones derailments and natural disasters, or section. The railroad must submit the plan to FRA for approval under the shall be specific and measurable; engagement in other intensive working criteria of subpart D. (3) A description of how the railroad conditions; (b) Goals. An FRMP plan must may make significant changes to the (ii) Developing and implementing contain a statement that defines the FRMP plan under the process for scheduling practices for employees, specific fatigue-related goals of the amending its RRP plan in § 271.303; and including innovative scheduling FRMP and describes strategies for practices, on-duty call practices, work (4) The procedures for consultation reaching those goals. with directly affected employees on any and rest cycles, increased consecutive (c) Methods—(1) Analysis of fatigue days off for employees, changes in shift subsequent substantive amendments to risk. An FRMP plan shall describe a the railroad’s FRMP plan. The patterns, appropriate scheduling railroad’s method(s) for conducting its practices for varying types of work, and requirements of this section do not fatigue-risk analysis as part of its FRMP. apply to non-substantive amendments other aspects of employee scheduling to The description shall specify: reduce employee fatigue and cumulative (e.g., amendments that update names (i) The scope of the analysis, which is and addresses of railroad personnel). sleep loss; and the covered population of safety-related (iii) Providing opportunities to obtain (e) Submittal. A railroad shall amend railroad employees; its RRP plan submitted under subpart D restful sleep at lodging facilities, (ii) The processes a railroad will use of this part to include its FRMP plan including employee sleeping quarters to identify fatigue-related railroad safety that meets the requirements of this provided by the railroad carrier. hazards on its system and determine the section no later than August 19, 2021. (3) Communication. A railroad shall degree of risk associated with each consider developing and implementing fatigue-related hazard identified; (1) A railroad shall follow the training, education, and outreach (iii) The processes a railroad will use procedures in § 271.303 to amend its methods to deliver fatigue-related to compare and prioritize identified RRP plan. information effectively to its safety- fatigue-related risks for mitigation (2) If a railroad was not required to related railroad employees. At a purposes; and submit an RRP plan initially, but is minimum, a railroad shall consider (iv) The information sources a required to do so at a later date, the communications regarding employee railroad will use to support ongoing railroad shall either include an FRMP education and training on the identification of fatigue-related railroad plan as part of its RRP plan submission physiological and human factors that safety hazards and determine the degree under § 271.301 or submit its FRMP affect fatigue, as well as strategies to of risk associated with those hazards. plan in accordance with the procedures reduce or mitigate the effects of fatigue, (2) Mitigation strategies. An FRMP for amending its RRP plan under based on the most current scientific and plan shall describe a railroad’s § 271.303 no later than August 19, 2021, medical research and literature. processes for: whichever is later. (d) Evaluation. A railroad shall (i) Identifying and selecting fatigue Issued in Washington, DC. develop and implement procedures and risk mitigation strategies; and processes for monitoring and evaluating (ii) Monitoring identified fatigue- Quintin C. Kendall, its FRMP to assess whether the FRMP related railroad safety hazards. Deputy Administrator. effectively meets the goals its FRMP (3) Evaluation. An FRMP plan shall [FR Doc. 2020–27085 Filed 12–21–20; 8:45 am] plan describes under § 271.609(b). describe: BILLING CODE 4910–06–P

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Notices Federal Register Vol. 85, No. 246

Tuesday, December 22, 2020

This section of the FEDERAL REGISTER protection is 20 years for most crops and DEPARTMENT OF AGRICULTURE contains documents other than rules or 25 years for trees, shrubs, and vines. proposed rules that are applicable to the The PVPA also provides for a statutory Rural Housing Service public. Notices of hearings and investigations, Board (7 U.S.C. 2327). The Board is committee meetings, agency decisions and [Docket No. RHS–20–MFH–0029] rulings, delegations of authority, filing of composed of 14 individuals who are petitions and applications and agency experts in various areas of development Notice of Request for Extension of a statements of organization and functions are and represent the seed industry sector, Currently Approved Information examples of documents appearing in this academia, and government. The duties Collection section. of the Board are to: (1) Advise the AGENCY: Rural Housing Service. Secretary concerning the adoption of ACTION: rules and regulations to facilitate the Proposed collection; comments requested. DEPARTMENT OF AGRICULTURE proper administration of the FACA; (2) Agricultural Marketing Service provide advisory counsel to the SUMMARY: In accordance with the Secretary on appeals concerning Paperwork Reduction Act of 1995, this [Document No. AMS–ST–20–0099] decisions on applications by the PVP notice announces the Rural Housing Office and on requests for emergency Service’s intention to request an Plant Variety Protection Board; Open public-interest compulsory licenses; and extension for a currently approved Teleconference Meeting (3) advise the Secretary on any other information collection in support of the AGENCY: Agricultural Marketing Service, matters under the Regulations and Rules program of the Agency’s use of USDA. of Practice and on all questions under Supervised Bank Accounts (SBA). ACTION: Notice of meeting. Section 44 of the FACA, ‘‘Public Interest DATES: Comments on this Notice must in Wide Usage’’ (7 U.S.C. 2404). be received by February 22, 2021 to be SUMMARY: Pursuant to the Federal Meeting Agenda: The purpose of the assured of consideration. Advisory Committee Act (FACA), the meeting will be to discuss the PVPO FOR FURTHER INFORMATION CONTACT: Agricultural Marketing Service (AMS) is 2021 program activities, the electronic Barbara Chism, Finance and Loan announcing a meeting of the Plant application system, and the working Analyst, Multi-Family Housing Asset Variety Protection Board (Board). The group update. The Board plans to Management Division, Policy and meeting is being held to discuss a discuss program activities that Budget Branch, STOP 0782-Room variety of topics including, but not encourage the development of new 1263S, U.S. Department of Agriculture, limited to, regulation updates, 1400 Independence Avenue SW, subcommittee activities, and program plant varieties and address appeals to the Secretary. The meeting will be open Washington, DC 20250–0782. activities. The meeting is open to the Telephone: (202) 690–1436. public. This notice sets forth the to the public. Those wishing to schedule and location for the meeting. participate are encouraged to pre- SUPPLEMENTARY INFORMATION: The OMB register by March 12, 2021, by regulation (5 CFR 1320) implementing DATES: Wednesday, March 31, 2021; 2 contacting Jeffery Haynes, acting provisions of the Paperwork Reduction p.m. to 4 p.m. commissioner, at Telephone: (202) 720– Act of 1995 (Pub. L. 104–13) requires ADDRESSES: The meeting will be 1066; or Email: Jeffery.Haynes@ that interested members of the public conducted through teleconference. usda.gov. and affected agencies have an FOR FURTHER INFORMATION CONTACT: opportunity to comment on information Jeffery Haynes, Commissioner, Plant Meeting Accommodation: The meeting at USDA will provide collection and recordkeeping activities Variety Protection Office, USDA, AMS, (see 5 CFR 1320.8(d)). This notice reasonable accommodation to Science and Technology Programs; identifies an existing information individuals with disabilities where Telephone: (202) 720–1066; or Email: collection that the Agency is submitting appropriate. If you need reasonable [email protected]. to OMB for extension. Comments are accommodation to participate in this SUPPLEMENTARY INFORMATION: Pursuant invited on: (a) Whether the proposed public meeting, please notify Jeffery to the provisions of section 10(a) of the collection of information is necessary FACA (5 U.S.C., Appendix 2), this Haynes at: Telephone: (202) 720–1066; for the proper performance of the notice informs the public that the Plant or Email: [email protected]. functions of the Agency, including Variety Protection Office (PVPO) is Determinations for reasonable whether the information will have sponsoring a meeting of the Board on accommodation will be made on a case- practical utility; (b) the accuracy of the March 31, 2021. The Plant Variety by-case basis. Minutes of the meeting Agency’s estimate of the burden of the Protection Act (PVPA) (7 U.S.C. 2321 et will be available for public review 30 proposed collection of information seq.) provides legal protection in the days following the meeting on the including the validity of the form of intellectual property rights to internet at http://www.ams.usda.gov/ methodology and assumptions used; (c) developers of new varieties of plants. A PVPO. ways to enhance the quality, utility and certificate of Plant Variety Protection is clarity of the information to be awarded to an owner of a crop variety Bruce Summers, collected; and (d) ways to minimize the after an examination shows that it is Administrator, Agricultural Marketing burden of the collection of information new, distinct from other varieties, Service. on those who are to respond, including genetically uniform, and stable through [FR Doc. 2020–28176 Filed 12–21–20; 8:45 am] the use of appropriate automated, successive generations. The term of BILLING CODE P electronic, mechanical, or other

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technological collection techniques or supervised accounts is contained in DATES: To ensure consideration, other forms of information technology. section 510 of the Housing Act of 1949, comments regarding this proposed Comments may be sent through the as amended (42 U.S.C. 1480). These information collection must be received Federal eRulemaking Portal: Go to provisions authorize the Secretary of on or before February 22, 2021. http://www.regulations.gov and, in the Agriculture to make such rules and ADDRESSES: Interested persons are ‘‘Search’’ box, enter the Docket ID No. regulations as deemed necessary to invited to submit written comments by ‘‘RHS–20–MFH–0029’’ to submit or carry out the responsibilities and duties email to robin.a.pennington@ view public comments and to view the Government is charged with census.gov. Please reference ‘‘School supporting and related materials administering. District Review Program’’ in the subject available electronically. Information on Estimate of Burden: Public reporting line of your comments. You may also using Regulations.gov, including burden for this information collection is submit comments, identified by Docket instructions for accessing documents, estimated to average .43 hours per Number USBC–2020–0033, to the submitting comments, and viewing the response. Federal e-Rulemaking Portal: http:// Respondents: Small Business. docket after the close of the comment www.regulations.gov. All comments Estimated Average Number of period, is available through the site’s received are part of the public record. Respondents: 13,500. ‘‘Help’’ button at the top of the page. No comments will be posted to http:// Title: 7 CFR 1902–A, Supervised Bank Estimated Total Annual Responses: www.regulations.gov for public viewing Accounts. 54,292. OMB Number: 0575–0158. Estimated Number of Responses per until after the comment period has Expiration Date of Approval: February Respondent: 4.02. closed. Comments will generally be 28, 2021. Estimated Total Number of Man posted without change. All Personally Type of Request: Extension of a Hours: 23,636. Identifiable Information (for example, Currently Approved Information Copies of this information collection name and address) voluntarily Collection. can be obtained from Lynn Gilbert, submitted by the commenter may be Abstract: The Agency extends Rural Development Innovation Center— publicly accessible. Do not submit financial assistance to applicants that do Regulations Management Division, at Confidential Business Information or not qualify for loans under commercial (202) 690–2682. otherwise sensitive or protected rates and terms. The Agency use SBAs All responses to this notice will be information. You may submit as a mechanism to (1) ensure correct summarized and included in the request attachments to electronic comments in disbursement and expenditure of all for OMB approval. All comments will Microsoft Word, Excel, or Adobe PDF funds designated for a project; (2) help also become a matter of public record. file formats. a borrower properly manage its financial FOR FURTHER INFORMATION CONTACT: affairs; (3) ensure that the Government’s Elizabeth Walker Green, Acting Administrator, Rural Housing Service. Requests for additional information or security is protected adequately from specific questions related to collection fraud, waste and abuse. SBAs are [FR Doc. 2020–28213 Filed 12–21–20; 8:45 am] activities should be directed to Robin A. mandatory for Multi-Family Housing BILLING CODE P Pennington, Decennial Census (MFH) reserve accounts. The MFH Management Division, Program funds must be kept in the SBA for the Management Office, by phone 301–763– full term of a loan. Any funds DEPARTMENT OF COMMERCE 8132 or by email robin.a.pennington@ withdrawn for disbursement for an census.gov. authorized purpose require a Census Bureau countersignature from an Agency SUPPLEMENTARY INFORMATION: Agency Information Collection official. This regulation prescribes the I. Abstract policies and responsibilities for the use Activities; Submission to the Office of of SBAs. In carrying out the mission as Management and Budget (OMB) for The School District Review Program a supervised credit Agency, this Review and Approval; Comment (SDRP) is one of many voluntary regulation authorizes the use of Request; School District Review geographic partnership programs. The supervised accounts for the Program SDRP collects school district disbursement of funds. The use may be AGENCY: U.S. Census Bureau, information and boundaries to update necessitated to disburse Government Commerce. the U.S. Census Bureau’s geographic database of addresses, streets, and funds consistent with the various stages ACTION: Notice of information collection, boundaries. The Census Bureau uses its of any development (construction) work request for comment. actually achieved. On limited occasions, geographic database to tie demographic a supervised account is used to provide SUMMARY: The Department of data from surveys and the decennial temporary credit counseling and Commerce, in accordance with the census to locations and areas, such as oversight of those being assisted who Paperwork Reduction Act (PRA) of cities, school districts, and counties. To demonstrate an inability to handle their 1995, invites the general public and tabulate statistics by localities, the financial affairs responsibly. Another other Federal agencies to comment on Census Bureau must have accurate use is for depositing MFH reserve proposed, and continuing information addresses and boundaries. account funds in a manner requiring collections, which helps us assess the While the geographic programs differ Agency co-signature for withdrawals. impact of our information collection in requirements, timeframe, and MFH reserve account funds are held in requirements and minimize the public’s participants, SDRP and the other a reserve account for the future capital reporting burden. The purpose of this geographic programs all follow the same improvement needs for apartment notice is to allow for 60 days of public basic process: properties. Supervised accounts are comment on the proposed extension of • The Census Bureau invites eligible established to ensure Government the School District Review Program participants to the program. For SDRP, security is adequately protected against prior to the submission of the the sponsor, the National Center for fraud, waste and abuse. The legislative information collection request (ICR) to Education Statistics invites the state authority for requiring the use of OMB for approval. departments of education/state Title I

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coordinators to designate mapping that is not a component of a supervisory Once mapping coordinators have coordinators. union. Type 2 is a local school district reviewed and updated the school • If they elect to participate in the component of a supervisory union district information for their state, the program, participants receive a copy of sharing a superintendent and mapping coordinator sends it to the the boundaries the Census Bureau has administrative services with other local Census Bureau, using Secure Web on file. SDRP participants receive free school districts. Incoming Module (SWIM), a web portal customized mapping software. The SDRP consists of two phases—the for uploading SDRP submissions. The • Participants review the boundaries Annotation and Verification Phases. In Census Bureau will update the MAF/ in the Census Bureau provided digital the Annotation Phase, the Census TIGER database with the updates sent maps and update them if needed. For Bureau provides mapping coordinators by the mapping coordinator. SDRP, participants reach out to contacts with materials containing the most in their state to collect updates. current school district boundaries and Schedule • Participants return their updates to information the Census Bureau has on • Annotation Phase begins for the the Census Bureau. file for their state. Mapping coordinators SDRP—August/September of each year. • The Census Bureau updates its review the data and submit changes to • Deadline to submit SDRP geographic database with boundary the school district boundaries or Annotation Phase to Census Bureau— updates from participants. associated information to the Census last workday in December of each year. • The Census Bureau uses the newly Bureau. The Census Bureau reviews and Verification Phase updated boundaries to tabulate processes the information submitted by statistics. mapping coordinators, and the Census In the Verification Phase, the Census The Census Bureau requests state Bureau updates all verified changes into Bureau sends mapping coordinators officials to review and update the school the Master Address File/Topologically newly created listings and digital files, district information the Census Bureau Integrated Geographic Encoding and and mapping coordinators use the SDRP has on file, through the SDRP. The Referencing (MAF/TIGER) database. In verification module in GUPS to review school district information obtained the Verification Phase, mapping these files and verify that the Census through this program will assist in coordinators verify that the Census Bureau correctly captured their forming the Census Bureau’s estimates Bureau accurately and completely submitted information. The mapping of the number of children age five updated the MAF/TIGER database with coordinator can tag the area of issue and through seventeen, in families and updates submitted during the send the information to the Census living in poverty, for each school Annotation Phase. Bureau to make corrections if the district. Census Bureau did not incorporate their State officials will provide the Census II. Method of Collection boundary changes or other updates Bureau with updates and corrections to Annotation Phase correctly. the federal School District Local Education Agency (SDLEA) In the Annotation Phase, mapping Schedule identification numbers, school district coordinators gather school district • Verification Phase begins and ends boundaries, school names, grade ranges, updates from school district for the SDRP—March/April of each and levels for which each school district superintendents and other state officials year. is financially responsible. and use Census Bureau-provided III. Data These Census Bureau estimates are materials to review and update school the basis of the Title I allocation for district boundaries, names, codes, and OMB Control Number: 0607–0987. each school district. The SDRP is of geographic relationships. The Census Form Number(s): None. vital importance for each state’s Bureau provides mapping coordinators Type of Review: Regular submission, allocation under Title I of the with school district listings, spatial data Request for an Extension, without Elementary and Secondary Education in Esri shapefile format, blank change of a currently approved Act (ESEA) as amended by Every submission logs, and Geographic collection. Student Succeeds Act of 2015, Public Update Partnership Software (GUPS). Affected Public: All fifty states and Law 114–95. The U.S. Department of The school district listings consist of the District of Columbia. Education uses these estimates to school district inventories, school Estimated Number of Respondents: • Annotation Phase: 51. allocate more than $14 billion in Title names, levels, grade ranges, and other • Verification Phase: 51. I funding annually. data about school districts within their state. If the mapping coordinator has Estimated Time per Response: The National Center for Education • Annotation Phase: 30 hours. Statistics (NCES) sponsors the SDRP. non-spatial updates (e.g., name changes, • Verification Phase: 10 hours. The NCES invites the state departments simple consolidations, simple Estimated Total Annual Burden of education/Title I coordinators to dissolutions, and others), the mapping Hours: 2,040. designate a mapping coordinator for coordinator updates the Census Bureau • Annotation Phase: 1,530 hours. each state and the District of Columbia. provided submission log with those • Verification Phase: 510 hours. The mapping coordinator collects changes. If a mapping coordinator needs Estimated Total Annual Cost to updates from local school districts, state to perform spatial updates to a school Public: $0. (This is not the cost of education officials, county planners, district boundary, the mapping respondents’ time, but the indirect costs and state data centers, and ensures coordinator uses Census Bureau respondents may incur for such things completion of submissions within the provided GUPS and spatial data to make as purchases of specialized software or SDRP’s timeframe. The respondents for updates. GUPS, SDRP version, is a hardware needed to report, or the SDRP are the Title I coordinators Census Bureau-created, user-friendly, expenditures for accounting or records and mapping coordinators from the fifty free digital mapping tool for mapping maintenance services required states and the District of Columbia. coordinators. It contains all the specifically by the collection.). The SDRP encompasses Type 1 and functionality necessary for mapping Respondent’s Obligation: Voluntary. Type 2 school districts as defined by the coordinators to spatially make and Legal Authority: Title 13 U.S.C. NCES. Type 1 is a local school district validate their school district updates. Section 16, 141, and 193.

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NCES Legal Authority: Title I, Part A public and other Federal agencies to Respondent’s Obligation: Voluntary of the Elementary and Secondary comment on proposed, and continuing via a Memorandum of Understanding Education Act as amended by the Every information collections, which helps us (MOU). Student Succeeds Act of 2015, Public assess the impact of our information Legal Authority: The authority to Law (Pub. L.) 114–95. collection requirements and minimize conduct the LEHD program is 13 U.S.C. the public’s reporting burden. Public IV. Request for Comments Section 6. Confidentiality of all comments were previously requested collected data is assured by 13 U.S.C. Comments are invited on: (a) Whether via the Federal Register on September Section 9. the proposed collection of information 25, 2020 during a 60-day comment This information collection request is necessary for the proper performance period. This notice allows for an may be viewed at www.reginfo.gov. of the functions of the agency, including additional 30 days for public comments. Follow the instructions to view the whether the information shall have Agency: U.S. Census Bureau. Department of Commerce collections practical utility; (b) the accuracy of the Title: Longitudinal Employer- currently under review by OMB. agency’s estimate of the burden Household Dynamics (LEHD). Written comments and (including hours and cost) of the OMB Control Number: 0607–1001. recommendations for the proposed Form Number(s): None. proposed collection of information; (c) information collection should be Type of Request: Regular submission, ways to enhance the quality, utility, and submitted within 30 days of the Request for an Extension, without clarity of the information to be publication of this notice on the Change, of a Currently Approved collected; and (d) ways to minimize the following website www.reginfo.gov/ Collection. burden of the collection of information public/do/PRAMain. Find this on respondents, including through the Number of Respondents: 54. Average Hours per Response: No more particular information collection by use of automated collection techniques selecting ‘‘Currently under 30-day or other forms of information than 8 hours required to identify and send/post required data sets. Review—Open for Public Comments’’ or technology. by using the search function and Comments that you submit in Burden Hours: 1,728 hours. entering either the title of the collection response to this notice are a matter of Needs and Uses: The data products or the OMB Control Number 0607–1001. public record. Summarization of developed by the LEHD program comments submitted in response to this provide statistics on employment, Sheleen Dumas, notice will be included in our request to earnings, and job flows at detailed levels Department PRA Clearance Officer, Office of OMB to approve this ICR. Before of geography and industry and for the Chief Information Officer, Commerce including your address, phone number, different demographic groups. The Department. email address, or other personal potential and realized uses of these data [FR Doc. 2020–28139 Filed 12–21–20; 8:45 am] identifying information in your products and their supporting BILLING CODE 3510–07–P comment, you should be aware that dissemination tools are far-reaching, your entire comment—including your both for unraveling many important personal identifying information—may questions in economic research and for DEPARTMENT OF COMMERCE be made publicly available at any time. the provision of new statistical While you may ask us in your comment products. Over the first five months of Agency Information Collection to withhold your personal identifying 2017, the Census Bureau received more Activities; Submission for OMB information from public review, we than 105,000 visits to its LEHD Review; Comment Request; Reporting cannot guarantee that we will be able to dissemination tools. Just some examples Process for Complaint of Employment do so. of novel use of LEHD data include: Discrimination Used by Permanent • The New Jersey State Data Center Employees and Applicants for Sheleen Dumas, used OnTheMap for Emergency Employment at DOC and Complaint of Department PRA Clearance Officer, Office of Management to quickly learn the impact Employment Discrimination for the the Chief Information Officer, Commerce of hurricane Sandy with regards to Decennial Census Department. identification of Federal Disaster [FR Doc. 2020–28143 Filed 12–21–20; 8:45 am] Declaration Areas and its effects on The Department of Commerce will BILLING CODE 3510–07–P communities (i.e., population and submit the following information workforce). collection request to the Office of • The state of Nevada has used the Management and Budget (OMB) for DEPARTMENT OF COMMERCE Job-to-Job Flows data product to review and clearance in accordance understand the migration of its with the Paperwork Reduction Act of Census Bureau workforce that supports the hotel 1995, on or after the date of publication of this notice. We invite the general Agency Information Collection industry. • public and other Federal agencies to Activities; Submission to the Office of The Philadelphia Center City comment on proposed, and continuing Management and Budget (OMB) for District used LEHD data to understand information collections, which helps us Review and Approval; Comment the details of the area’s workforce and assess the impact of our information Request; Longitudinal Employer- economy in order to monitor the collection requirements and minimize Household Dynamics (LEHD) effectiveness of economic programs and policy initiatives. the public’s reporting burden. Public The Department of Commerce will Additional examples of how the comments were previously requested submit the following information LEHD data products and supporting via the Federal Register on October 1, collection request to the Office of dissemination tools have been used can 2020 during a 60-day comment period. Management and Budget (OMB) for be found at the LEHD website: https:// We received public comments. This review and clearance in accordance lehd.ces.census.gov/led_in_action/. notice allows for an additional 30 days with the Paperwork Reduction Act of Affected Public: State, Local, or Tribal for public comments. 1995, on or after the date of publication government. Agency: Office of the Secretary, Office of this notice. We invite the general Frequency: Quarterly. of Civil Rights, Commerce.

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Title: Complaint of Employment the disclosure provisions applicable to publication of this notice on the Discrimination against the Department Forms CD–498 and CD–498A are following website www.reginfo.gov/ of Commerce. consistent with the confidentiality public/do/PRAMain. Find this OMB Control Number: 0690–0015. requirements of the Rehabilitation Act particular information collection by Form Number(s): CD–498, 498–A. of 1973, as amended (Rehabilitation selecting ‘‘Currently under 30-day Type of Request: Regular (extension of Act) and Title II of the Genetic Review—Open for Public Comments’’ or a currently approved information Information Nondiscrimination Act by using the search function and collection). (GINA). Ms. Schnall further entering either the title of the collection Number of Respondents: 600. recommended that the Department of or the OMB Control Number 0690–0015. Average Hours per Response: 30. Commerce provide options for agency Burden Hours: 300. applicants and employees to submit Sheleen Dumas, Needs and Uses: The Equal employment discrimination complaint Department PRA Clearance Officer, Office of Employment Opportunity Commission forms and related information safely the Chief Information Officer, Commerce (EEOC) regulations at 29 CFR 1614.106 Department. and expeditiously during the pandemic. require that a Federal employee or In response to the public comment [FR Doc. 2020–28171 Filed 12–21–20; 8:45 am] applicant for Federal employment received, the Department of Commerce BILLING CODE 3510–BP–P alleging discrimination based on race, has updated information on Form CD– color, sex, national origin, religion, age, 498A regarding the processing of sexual disability, or reprisal for protected orientation discrimination complaints DEPARTMENT OF COMMERCE activity must submit a signed statement and has included comprehensive lists of Foreign-Trade Zones Board that is sufficiently precise to identify the the protected bases under federal actions or practices that form the bases employment discrimination laws to [Order No. 2108] of the complaint. The individual both forms CD–498 and CD–498A. completing the form is asked to identify Additionally, the Department of Reorganization of Foreign-Trade Zone the bureau at which the alleged Commerce has added the legal citation 208 Under Alternative Site Framework; discrimination took place, and whether for 42 U.S.C. 2000ff and ‘‘genetic New London, Connecticut the individual worked at that bureau at information’’ (or ‘‘genetic information Pursuant to its authority under the the time of the alleged discrimination. (such as family medical history’’) to the Foreign-Trade Zones Act of June 18, The individual completing the form is Privacy Act Statement in form CD– 1934, as amended (19 U.S.C. 81a–81u), also asked to describe the alleged 498A. Further, the Department of the Foreign-Trade Zones Board (the discriminatory action(s) as clearly as Commerce has added language to help Board) adopts the following Order: possible and include the date(s) and to ensure that the disclosure provisions Whereas, the Foreign-Trade Zones articulate the basis or bases of the applicable to Forms CD–498 and CD– (FTZ) Act provides for ‘‘. . .the complaint (race, color, sex, etc.). 498A are consistent with the establishment . . . of foreign-trade Further, the individual completing the confidentiality requirements of the zones in ports of entry of the United form is asked to identify the remedy(ies) Rehabilitation Act of 1973, as amended States, to expedite and encourage sought for the alleged discrimination. (Rehabilitation Act) and Title II of the foreign commerce, and for other Although complainants are not required Genetic Information Nondiscrimination purposes,’’ and authorizes the Board to to use the proposed form to file their Act (GINA). Last, with respect to the grant to qualified corporations the complaints, the Office of Civil Rights recommendation regarding the privilege of establishing foreign-trade strongly encourages its use to ensure Department of Commerce providing zones in or adjacent to U.S. Customs efficient case processing and trend options for agency applicants and and Border Protection ports of entry; analyses of complaint activity. employees to submit employment Whereas, the Board adopted the The notice requesting public discrimination complaint forms and alternative site framework (ASF) (15 comment was published in the Federal related information safely and CFR Sec. 400.2(c)) as an option for the Register on October 1, 2020, 85 FR expeditiously during the pandemic, the establishment or reorganization of 61923. Public comment was received Department of Commerce currently has zones; from Lisa Schnall, Senior Attorney an effective procedure in place which Whereas, the New London Foreign Advisor, Office of Legal Counsel, Equal addresses this concern (i.e., the option Trade Zone Commission, grantee of Employment Opportunity Commission to submit complaint forms by email to Foreign-Trade Zone 208, submitted an on November 30, 2020. the Office of Civil Rights or to the With respect to the CD–498 and CD– application to the Board (FTZ Docket B– applicable Bureau EEO Officer is noted 498A forms specifically, Ms. Schnall 44–2020, docketed July 13, 2020) for on the Notice of Right to File which is recommended that the Department of authority to reorganize under the ASF issued to complainants and which Commerce update information on Form with a service area of New London accompanies the CD–498 or CD–498A). CD–498A regarding the processing of Affected Public: Individuals and County, Connecticut, adjacent to the sexual orientation discrimination households. New London Customs and Border complaints and ensure that Forms CD– Frequency: On occasion. Protection port of entry, and FTZ 208’s 498 and 498A include comprehensive Respondent’s Obligation: Voluntary. existing Site1 would be categorized as a lists of the protected bases under federal Legal Authority: 29 CFR 1614.106. magnet site; employment discrimination laws. Ms. This information collection request Whereas, notice inviting public Schnall also suggested that the may be viewed at www.reginfo.gov. comment was given in the Federal Department of Commerce add the legal Follow the instructions to view the Register (85 FR 44040, July 21, 2020) citation for 42 U.S.C. 2000ff and Department of Commerce collections and the application has been processed ‘‘genetic information’’ (or ‘‘genetic currently under review by OMB. pursuant to the FTZ Act and the Board’s information (such as family medical Written comments and regulations; and, history’’) to the Privacy Act Statement. recommendations for the proposed Whereas, the Board adopts the Ms. Schnall also suggested that the information collection should be findings and recommendations of the Department of Commerce (3) ensure that submitted within 30 days of the examiner’s report, and finds that the

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requirements of the FTZ Act and the DEPARTMENT OF COMMERCE Scope of the Order Board’s regulations are satisfied; International Trade Administration The merchandise covered by this Now, therefore, the Board hereby order is PRCBs from Malaysia, which [A–557–813] orders: also may be referred to as t-shirt sacks, The application to reorganize FTZ 208 Polyethylene Retail Carrier Bags From merchandise bags, grocery bags, or under the ASF is approved, subject to Malaysia: Preliminary Results of checkout bags. Imports of merchandise the FTZ Act and the Board’s regulations, Antidumping Duty Administrative included within the scope of this including Section 400.13, to the Board’s Review; 2018–2019 antidumping duty order are currently standard 2,000-acre activation limit for classifiable under statistical category AGENCY: Enforcement and Compliance, the zone, and to an ASF sunset 3923.21.0085 of the Harmonized Tariff International Trade Administration, provision for magnet sites that would Schedule of the United States (HTSUS). terminate authority for Site 1 if not Department of Commerce. SUMMARY: The Department of Commerce This subheading may also cover activated within five years from the (Commerce) preliminarily determines products that are outside the scope of month of approval. that sales of polyethylene retail carrier this antidumping duty order. Although Dated: December 17, 2020. bags (PRCBs) were not made at less than the HTSUS subheading is provided for Jeffrey I. Kessler, normal value (NV) during the August 1, convenience and customs purposes, the written description of the scope of this Assistant Secretary for Enforcement and 2018 through July 31, 2019, period of Compliance, Alternate Chairman, Foreign- review (POR). Interested parties are antidumping duty order is dispositive. Trade Zones Board. invited to comment on these For a full description of the scope of the [FR Doc. 2020–28206 Filed 12–21–20; 8:45 am] preliminary results. order, see the Preliminary Decision DATES: Applicable December 22, 2020. Memorandum. BILLING CODE 3510–DS–P FOR FURTHER INFORMATION CONTACT: Kyle Methodology Clahane, AD/CVD Operations, Office III, DEPARTMENT OF COMMERCE Enforcement and Compliance, Commerce is conducting this International Trade Administration, administrative review in accordance Foreign-Trade Zones Board U.S. Department of Commerce, 1401 with section 751(a) of the Tariff Act of Constitution Avenue NW, Washington, 1930, as amended (the Act). Export [S–196–2020] DC 20230; telephone: (202) 482–5449. price was calculated in accordance with SUPPLEMENTARY INFORMATION: section 772 of the Act. Normal value Approval of Subzone Status; MANE Background was calculated in accordance with USA, Wayne and Parsippany, New section 773 of the Act. Jersey On October 7, 2019, Commerce published a notice initiating an For a full description of the methodology underlying our On November 2, 2020, the Executive administrative review of the antidumping duty (AD) order on PRCBs conclusions, see the Preliminary Secretary of the Foreign-Trade Zones from Malaysia, covering one company: Decision Memorandum. A list of topics (FTZ) Board docketed an application Euro SME.1 included in the Preliminary Decision submitted by the State of New Jersey On April 24, 2020, Commerce tolled Memorandum is included as an Department of State, grantee of FTZ 44, all deadlines in administrative reviews Appendix to this notice. The requesting subzone status subject to the 2 by 50 days. On June 9, 2020, we Preliminary Decision Memorandum is a existing activation limit of FTZ 44, on extended the deadline for preliminary public document and is on file behalf of MANE USA, in Wayne and results of this review from June 22, 2020 electronically via Enforcement and Parsippany, New Jersey. until October 16, 2020.3 Subsequently, Compliance’s Antidumping and on July 21, 2020, Commerce tolled all The application was processed in Countervailing Duty Centralized accordance with the FTZ Act and deadlines in administrative reviews by 4 Electronic Service System (ACCESS). Regulations, including notice in the an additional 60 days. The deadline for the preliminary results of this review is ACCESS is available to registered users Federal Register inviting public at https://access.trade.gov. In addition, a comment (85 FR 70581, November 5, now December 15, 2020. For a complete description of the complete version of the Preliminary 2020). The FTZ staff examiner reviewed events that followed the initiation of Decision Memorandum can be accessed the application and determined that it this administrative review, see the directly at http://enforcement.trade.gov/ meets the criteria for approval. Pursuant Preliminary Decision Memorandum.5 frn/. The signed and the electronic to the authority delegated to the FTZ versions of the Preliminary Decision Board Executive Secretary (15 CFR Sec. 1 See Initiation of Antidumping and Memorandum are identical in content. 400.36(f)), the application to establish Countervailing Duty Administrative Reviews, 84 FR Subzone 44M was approved on 53411 (October 7, 2019) (Initiation Notice). Preliminary Results of the Review 2 December 17, 2020, subject to the FTZ See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty As a result of this review, we Act and the Board’s regulations, Administrative Reviews in Response to Operational preliminarily determine the following including Section 400.13, and further Adjustments Due to COVID–19,’’ dated April 24, weighted-average dumping margin for subject to FTZ 44’s 407.5-acre activation 2020. 3 See Memorandum, ‘‘Polyethylene Retail Carrier the period August 1, 2018 through July limit. Bags from Malaysia: Extension of Deadline for 31, 2019: Dated: December 17, 2020. Preliminary Results of Antidumping Duty Administrative Review,’’ dated June 9, 2020. Andrew McGilvray, 4 See Memorandum, ‘‘Tolling of Deadlines for Executive Secretary. Antidumping and Countervailing Duty Administrative Review: Polyethylene Retail Carrier Administrative Reviews,’’ dated July 21, 2020. Bags: 2018–2019,’’ dated concurrently with, and [FR Doc. 2020–28210 Filed 12–21–20; 8:45 am] 5 See Memorandum, ‘‘Decision Memorandum for hereby adopted by, this notice (Preliminary BILLING CODE 3510–DS–P the Preliminary Results of the Antidumping Duty Decision Memorandum).

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Weighted- by telephone the date, time, and We intend to issue liquidation average location of the hearing two days before instructions to CBP 15 days after Producer/exporter dumping the scheduled date. publication of the final results of this margin (percent) Unless otherwise extended, review. Commerce intends to issue the final Cash Deposit Requirements Euro SME Sdn. Bhd.; and Euro results of this administrative review, Nature Green Sdn. Bhd ...... 0.00 which will include the results of its The following deposit requirements analysis of issues raised in any briefs, will be effective for all shipments of the Disclosure and Public Comment not later than 120 days after the date of subject merchandise entered, or Commerce intends to disclose the publication of these preliminary results withdrawn from warehouse, for calculations performed in connection of review, pursuant to section consumption on or after the publication with these preliminary results to 751(a)(3)(A) of the Act. date of the final results of this interested parties within five days after Assessment Rates administrative review, as provided by the date of publication of this notice.6 section 751(a)(2)(C) of the Act: (1) The Interested parties may submit case briefs Upon completion of the cash deposit rate for the companies administrative review, Commerce shall no later than 30 days after the date of listed above, will be the rate established 7 determine, and U.S. Customs and publication of this notice. Rebuttal in the final results of the review (except, Border Protection (CBP) shall assess, briefs, limited to issues raised in the if the rate is zero or de minimis, no cash case briefs, may be filed no later than antidumping duties on all appropriate deposit will be required); (2) for seven days after the time limit for filing entries covered by this review.14 The previously investigated companies not case briefs.8 Parties who submit case final results of this review shall be the briefs or rebuttal briefs in this basis for the assessment of antidumping participating in this review, the cash proceeding are encouraged to submit duties on entries of merchandise deposit rate will continue to be the with each argument: (1) A statement of covered by the final results of this company-specific rate published for the the issue; (2) a brief summary of the review and for future deposits of most recently completed segment of this argument; and (3) a table of authorities.9 estimated duties, where applicable.15 proceeding in which the company Executive summaries should be limited For any individually examined participated; (3) if the exporter is not a to five pages total, including footnotes. respondent whose weighted-average firm covered in this review, a prior Case and rebuttal briefs should be filed dumping margin is above de minimis review, or the original less-than-fair- using ACCESS 10 and must be served on (i.e., 0.50 percent) in the final results of value (LTFV) investigation, but the interested parties.11 Note that this review, we intend to calculate manufacturer is, the cash deposit rate Commerce has temporarily modified importer-specific ad valorem duty will be the rate established for the most certain of its requirements for serving assessment rates based on the ratio of recently completed segment of this documents containing business the total amount of antidumping duties proceeding for the manufacturer of the proprietary information, until further calculated for the importer’s examined subject merchandise; and (4) the cash notice.12 sales to the total entered value of those deposit rate for all other manufacturers Pursuant to 19 CFR 351.310(c), same sales in accordance with 19 CFR or exporters will continue to be 84.94 interested parties who wish to request a 351.212(b)(1).16 We intend to instruct percent, the all-others rate established hearing must submit a written request to CBP to assess antidumping duties on all in the LTFV investigation.17 the Assistant Secretary for Enforcement appropriate entries covered by this These deposit requirements, when and Compliance, filed electronically via review when the importer-specific ACCESS. An electronically filed imposed, shall remain in effect until assessment rate calculated in the final further notice. document must be received successfully results of this review is not zero or de in its entirety by Commerce’s electronic minimis. If a respondent’s weighted- Notification to Importers records system, ACCESS, by 5:00 p.m. average dumping margin is zero or de Eastern Time within 30 days after the This notice also serves as a 13 minimis within the meaning of 19 CFR date of publication of this notice. 351.106(c)(1), or an importer-specific preliminary reminder to importers of Requests should contain: (1) The party’s rate is zero or de minimis, we intend to their responsibility under 19 CFR name, address and telephone number; instruct CBP to liquidate the appropriate 351.402(f) to file a certificate regarding (2) the number of participants; and (3) entries without regard to antidumping the reimbursement of antidumping a list of issues parties intend to discuss. duties. duties prior to liquidation of the Issues raised in the hearing will be relevant entries during this review For entries of subject merchandise limited to those raised in the respective period. Failure to comply with this during the POR for which a respondent case and rebuttal briefs.13 If a request for requirement could result in Commerce’s a hearing is made, Commerce intends to did not know that its merchandise was destined for the United States, we presumption that reimbursement of hold the hearing at a time and date to antidumping duties occurred and the be determined. Parties should confirm intend to instruct CBP to liquidate such entries at the all-others rate if there is no subsequent assessment of double antidumping duties. 6 See 19 CFR 351.224(b). rate for the intermediate company (or 7 See 19 CFR 351.309(c)(1)(ii). companies) involved in the transaction. Notification to Interested Parties 8 See 19 CFR 351.309(d)(1); see also Temporary Rule Modifying AD/CVD Service Requirements Due 14 See 19 CFR 351.212(b). We are issuing and publishing these to COVID–19; Extension of Effective Period, 85 FR 15 See section 751(a)(2)(C) of the Act. results in accordance with sections 41363 (July 10, 2020) (Temporary Rule). 16 In these preliminary results, Commerce applied 9 See 19 CFR 351.309(c)(2) and (d)(2) and 19 CFR 751(a)(1) and 777(i)(1) of the Act, and 19 the assessment rate calculation methodology 351.303 (for general filing requirements). CFR 351.213(h)(1). adopted in Antidumping Proceedings: Calculation 10 See 19 CFR 351.303. of the Weighted-Average Dumping Margin and 11 See 19 CFR 351.303(f). Assessment Rate in Certain Antidumping 17 See Antidumping Duty Order: Polyethylene 12 See Temporary Rule. Proceedings; Final Modification, 77 FR 8101 Retail Carrier Bags from Malaysia, 69 FR 48203 13 See 19 CFR 351.310(c). (February 14, 2012). (August 9, 2004).

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Dated: December 15, 2020. Way NE, Seattle, WA 98115, (206) 526– Estimated Number of Respondents: Jeffrey I. Kessler, 6119, or [email protected]. 153. Assistant Secretary for Enforcement and SUPPLEMENTARY INFORMATION: Estimated Time per Response: For the Compliance. existing observer providers: 2 hours for I. Abstract preparation and submission of the Appendix This submission is a renewal of an annual observer provider permit List of Topics Discussed in the Preliminary existing collection. In January 2011, the renewal application. For a new observer Decision Memorandum National Oceanic and Atmospheric provider: 10 hours for observer provider I. Summary Administration’s (NOAA) National permit application preparation and II. Background Marine Fisheries Service (NMFS) submission. For a new observer III. Scope of the Order implemented a trawl rationalization provider: 4 hours for a written response IV. Discussion of the Methodology and submission of an appeal if an V. Recommendation program, a catch share program, for the Pacific coast groundfish fishery’s trawl observer provider permit is denied. For [FR Doc. 2020–28168 Filed 12–21–20; 8:45 am] fleet. The program was developed existing catch monitors: 1 hour for BILLING CODE 3510–DS–P through Amendment 20 to the submission of qualifications to work as Groundfish Fishery Management Plan a catch monitor. For new catch (FMP), under the authority of the monitors: 4 hours for a written response DEPARTMENT OF COMMERCE Magnuson-Stevens Fishery and submission of an appeal if a catch Conservation and Management Act (16 monitor permit is denied. For existing National Oceanic and Atmospheric vessels in the Mothership or Catcher/ Administration U.S.C. 1801 et seq.) and consists of an individual fishing quota (IFQ) program Processor fleet, 30 minutes or less for satisfying requirements for use of at-sea Agency Information Collection for the shorebased trawl fleet (including scales, including daily testing reports Activities; Submission to the Office of whiting and non-whiting fisheries); and (30 minutes), daily catch and Management and Budget (OMB) for cooperative (coop) programs for the at- cumulative weight reports (10 minutes), Review and Approval; Comment sea mothership (MS) and catcher/ audit trail (1 minute), calibration log (2 Request; West Coast Region processor (C/P) trawl fleets (whiting only). As part of its fishery management minutes), and fault log (3 minutes). Groundfish Trawl Fishery Monitoring Estimated Total Annual Burden responsibilities, the National Marine and Catch Accounting Program Hours: 447 hours. Fisheries Service (NMFS) collects Estimated Total Annual Cost to AGENCY: National Oceanic & information to determine the amount Atmospheric Administration (NOAA), Public: $3,678. and type of catch taken by fishing Respondent’s Obligation: Mandatory. Commerce. vessels. This collection supports Legal Authority: The regulations at ACTION: Notice of information collection, monitoring requirements including §§ 660.140 (h), 660.150 (j), and 660.160 request for comment. scale test requirements for first receivers (g), specify observer coverage in the Pacific Coast groundfish fishery’s requirements for trawl vessels and SUMMARY: The Department of shorebased individual fishery quota define the responsibilities for observer Commerce, in accordance with the (IFQ) program; and mothership and providers, including reporting Paperwork Reduction Act of 1995 catcher/processors in the at-sea whiting requirements. Regulations at § 660.140 (PRA), invites the general public and fisheries. The collection also supports (i) specify requirements for catch other Federal agencies to comment on permits for businesses that provide monitor coverage for first receivers. proposed, and continuing information certified observer and certified catch Regulations at § 660.15 specify collections, which helps us assess the monitor services. The respondents are equipment, performance and technical impact of our information collection principally shore-based first receivers, requirements for scales used to weigh requirements and minimize the public’s catch monitor and observer service catch at sea. reporting burden. The purpose of this providers, mothership processors, and notice is to allow for 60 days of public catcher/processors which are IV. Request for Comments comment preceding submission of the companies/partnerships. We are soliciting public comments to collection to OMB. II. Method of Collection permit the Department/Bureau to: (a) DATES: To ensure consideration, Evaluate whether the proposed comments regarding this proposed This collection utilizes both information collection is necessary for information collection must be received electronic and paper forms, depending the proper functions of the Department, on or before February 22, 2021. on the specific item. Methods of including whether the information will submittal include email of electronic have practical utility; (b) Evaluate the ADDRESSES: Interested persons are forms, and mail and facsimile accuracy of our estimate of the time and invited to submit written comments to transmission of paper forms. cost burden for this proposed collection, Adrienne Thomas, NOAA PRA Officer, Additionally, this collection utilizes including the validity of the at [email protected]. Please interviews for some information methodology and assumptions used; (c) reference OMB Control Number 0648– collection and phone calls for Evaluate ways to enhance the quality, 0619 in the subject line of your transmission of other information. utility, and clarity of the information to comments. Do not submit Confidential III. Data be collected; and (d) Minimize the Business Information or otherwise reporting burden on those who are to sensitive or protected information. OMB Control Number: 0648–0619. respond, including the use of automated FOR FURTHER INFORMATION CONTACT: Form Number(s): None. collection techniques or other forms of Requests for additional information or Type of Review: Regular submission information technology. specific questions related to collection (extension of a current information Comments that you submit in activities should be directed to Matt collection). response to this notice are a matter of Dunlap, Fishery Policy Analyst, West Affected Public: Business or other for- public record. We will include or Coast Regional Office, 7600 Sand Point profit organizations. summarize each comment in our request

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to OMB to approve this ICR. Before Transfer of Scallop LLP License; 4 hours LLP licenses have ended, an LLP license including your address, phone number, for transfer appeals. may now only be obtained through email address, or other personal Total Annual Burden Hours: 56 transfer. identifying information in your hours. Needs and Uses: The National Marine This information collection collects comment, you should be aware that information necessary for transfer of your entire comment—including your Fisheries Service (NMFS), Alaska LLP licenses for groundfish, crabs, and personal identifying information—may Regional Office, is requesting renewal of scallops. This collection contains the be made publicly available at any time. the currently approved information While you may ask us in your comment collection for the Alaska License two applications used for those transfers to withhold your personal identifying Limitation Program (LLP) for and the transfer appeals process. information from public review, we Groundfish, Crab, and Scallops. An LLP license holder uses a transfer cannot guarantee that we will be able to The License Limitation Program (LLP) application to transfer an LLP license to do so. restricts access to the commercial a person who meets the eligibility groundfish, crab, and scallop fisheries requirements. The transfer applications Sheleen Dumas, in the exclusive economic zone off collect information on the transferor, the Department PRA Clearance Officer, Office of Alaska, except for certain areas where transferee, and the LLP license to be the Chief Information Officer, Commerce alternative programs exist. The intended transferred. The groundfish and crab Department. effect of the LLP is to limit the number [FR Doc. 2020–28175 Filed 12–21–20; 8:45 am] of participants and reduce fishing transfer application also collects information on the rockfish quota share BILLING CODE 3510–22–P capacity in fisheries off Alaska. More information on the LLP can be found on to be transferred, the vessel currently the NMFS Alaska Region website and at named on the LLP license, the vessel to DEPARTMENT OF COMMERCE 50 CFR 692, 679.4(g) and (k), and be named on the LLP license, and 679.7(i). ownership interest and transaction data. National Oceanic and Atmospheric An LLP license is required for vessels Affected Public: Individuals or Administration participating in directed fishing for LLP households; Business or other for-profit groundfish species in the Bering Sea Agency Information Collection organizations. and Aleutian Islands (BSAI) or Gulf of Activities; Submission to the Office of Alaska (GOA), or fishing in any BSAI Frequency: On occasion. Management and Budget (OMB) for LLP crab fisheries. An LLP license is Respondent’s Obligation: Required to Review and Approval; Comment also required for any vessel deployed in Obtain or Retain Benefits. Request; Alaska License Limitation scallop fisheries in Federal waters off Legal Authority: Magnuson-Stevens Program for Groundfish, Crab, and Alaska (except for some diving Scallops Fishery Conservation and Management operations). Act (16 U.S.C. 1801 et seq.). The Department of Commerce will Vessels participating in directed submit the following information fishing for LLP groundfish species in the This information collection request collection request to the Office of GOA or BSAI, or fishing in any BSAI may be viewed at www.reginfo.gov. Management and Budget (OMB) for LLP crab fisheries, must be named on a Follow the instructions to view the review and clearance in accordance valid copy of the LLP license that is on Department of Commerce collections with the Paperwork Reduction Act of board the vessel, with some exceptions. currently under review by OMB. 1995, on or after the date of publication An LLP groundfish or crab license Written comments and of this notice. We invite the general authorizes the license holder to deploy recommendations for the proposed public and other Federal agencies to the vessel in fisheries in accordance information collection should be comment on proposed, and continuing with the specific area and species submitted within 30 days of the endorsements, the vessel and gear information collections, which helps us publication of this notice on the designations, the maximum length assess the impact of our information following website www.reginfo.gov/ overall (MLOA) specified on the license, collection requirements and minimize public/do/PRAMain. Find this the public’s reporting burden. Public and any exemption from the MLOA specified on the license. particular information collection by comments were previously requested selecting ‘‘Currently under 30-day via the Federal Register on September An LLP scallop license authorizes the Review—Open for Public Comments’’ or 3, 2020 (85 FR 54999), during a 60-day person named on the license to catch by using the search function and comment period. This notice allows for and retain scallops in compliance with an additional 30 days for public State of Alaska regulations using a entering either the title of the collection comments. vessel that does not exceed the MLOA or the OMB Control Number 0648–0334. specified on the license and the gear Agency: National Oceanic and Sheleen Dumas, designation specified on the license. Atmospheric Administration (NOAA). Department PRA Clearance Officer, Office of Title: Alaska License Limitation Unlike the LLP groundfish license, the scallop license is not vessel specific. A the Chief Information Officer, Commerce Program for Groundfish, Crab, and Department. Scallops. valid copy of the LLP scallop license OMB Control Number: 0648–0334. must be on board the vessel. [FR Doc. 2020–28173 Filed 12–21–20; 8:45 am] Form Number(s): None. The LLP originally collected basic BILLING CODE 3510–22–P Type of Request: Regular submission, information so that NMFS could extension of a current information determine which owners of vessels were collection. issued LLP licenses. To receive an LLP Number of Respondents: 105. license, an eligible applicant needed to Average Hours per Response: 1 hour apply during the application periods each for Application for Transfer established when the program was License Limitation Program Groundfish/ implemented. As the application Crab License and Application for periods and selection process for the

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DEPARTMENT OF COMMERCE Greater Atlantic Region are required to cost burden for this proposed collection, submit logbooks containing catch and including the validity of the National Oceanic and Atmospheric effort information about their fishing methodology and assumptions used; (c) Administration trips. Participants in the tilefish and Evaluate ways to enhance the quality, open access herring fisheries are also utility, and clarity of the information to Agency Information Collection required to make reports on the catch, be collected; and (d) Minimize the Activities; Submission to the Office of which are currently submitted via an reporting burden on those who are to Management and Budget (OMB) for Interactive Voice Response (IVR) respond, including the use of automated Review and Approval; Comment system. In addition, vessels fishing collection techniques or other forms of Request; Greater Atlantic Region under the Exempted Fishing Permit information technology. Logbook Family of Forms (EFP) or Mid-Atlantic Research Set- Comments that you submit in AGENCY: National Oceanic & Aside (RSA) programs are required to response to this notice are a matter of Atmospheric Administration (NOAA), submit research catch information public record. We will include or Commerce. through the IVR system. The IVR system summarize each comment in our request to OMB to approve this ICR. Before ACTION: Notice of Information will be taken offline in 2021 and reports including your address, phone number, Collection, request for comment. will need to be submitted using our web based system, Fish Online. The email address, or other personal SUMMARY: The Department of information submitted is used by identifying information in your Commerce, in accordance with the several offices of the NOAA Fisheries comment, you should be aware that Paperwork Reduction Act of 1995 Service, the U.S. Coast Guard, the your entire comment—including your (PRA), invites the general public and Councils, and state fishery enforcement personal identifying information—may other Federal agencies to comment on agencies under contract to the NOAA be made publicly available at any time. proposed, and continuing information Fisheries Service in order to develop, While you may ask us in your comment collections, which helps us assess the implement, and monitor fishery to withhold your personal identifying impact of our information collection management strategies. This action information from public review, we requirements and minimize the public’s seeks to revise Paperwork Reduction cannot guarantee that we will be able to reporting burden. The purpose of this Act clearance for the impacted do so. notice is to allow for 60 days of public requirements. Sheleen Dumas, comment preceding submission of the II. Method of Collection Department PRA Clearance Officer, Office of collection to OMB. the Chief Information Officer, Commerce DATES: To ensure consideration, Information is collected through an Department. comments regarding this proposed Interactive Voice Response (IVR) [FR Doc. 2020–28217 Filed 12–21–20; 8:45 am] information collection must be received system. BILLING CODE 3510–22–P on or before February 22, 2021. III. Data ADDRESSES: Interested persons are OMB Control Number: 0648–0212. invited to submit written comments to DEPARTMENT OF COMMERCE Form Number(s): 80–30, 80–140. Adrienne Thomas, NOAA PRA Officer, Type of Review: Regular submission at [email protected]. Please National Oceanic and Atmospheric [revision of a current information reference OMB Control Number 0648– Administration collection]. 0212 in the subject line of your Affected Public: Individuals or [RTID 0648–XA718] comments. Do not submit Confidential households; business or other for-profit Business Information or otherwise Endangered and Threatened Species; organizations. Take of Anadromous Fish sensitive or protected information. Estimated Number of Respondents: FOR FURTHER INFORMATION CONTACT: 2,299. AGENCY: National Marine Fisheries Requests for additional information or Estimated Time per Response: 5 Service (NMFS), National Oceanic and copies of the information collection minutes for VTRs; 12.5 minutes for the Atmospheric Administration (NOAA), instrument and instructions should be Shellfish Log; 3 minutes standardized Department of Commerce. directed to James StCyr, Greater Atlantic response time for the 6 web forms— ACTION: Notice; availability of a Regional Office, Analysis & Program Soawning Blocks, Monkfish DAS, EFP, proposed evaluation and pending Support Division, Data Processing & Herring, RSA, and Tilefish). determination and permit application Quality Branch, 55 Great Republic Dr, Estimated Total Annual Burden for public comment. Gloucester, MA 01930, (978) 281–9369 Hours: 10,487. or [email protected]. Estimated Total Annual Cost to SUMMARY: Notice is hereby given that a SUPPLEMENTARY INFORMATION Public: $58,653. proposed evaluation and pending Respondent’s Obligation: Mandatory. determination (PEPD) is available for I. Abstract Legal Authority: Magnuson-Stevens public comment on a hatchery and This request is for the revision of a Fishery Conservation and Management genetic management plan (HGMP) for current information collection. Under Act. Skykomish River steelhead submitted the provisions of the Magnuson-Stevens under limit 6 of the Endangered Species Fishery Conservation and Management IV. Request for Comments Act (ESA) 4(d) Rule. NMFS is also Act (16 U.S.C. 1801 et seq.), the We are soliciting public comments to making an ESA section 10(a)(1)(A) National Oceanic and Atmospheric permit the Department/Bureau to: (a) permit application available for public Administration’s (NOAA) National Evaluate whether the proposed comment. The permit application is for Marine Fisheries Service (NMFS) is information collection is necessary for a trap and haul operation at Sunset responsible for management of the the proper functions of the Department, Falls, also on the Skykomish River in nation’s marine fisheries. Fishing including whether the information will Washington State. vessels permitted to participate in have practical utility; (b) Evaluate the DATES: Comments must be received at federally permitted fisheries in the accuracy of our estimate of the time and the appropriate address (see ADDRESSES)

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no later than 5 p.m. Pacific time on Dated: December 17, 2020. the contact listed below (see FOR January 21, 2021. Comments received Angela Somma, FURTHER INFORMATION CONTACT). after this date may not be considered. Chief, Endangered Species Conservation FOR FURTHER INFORMATION CONTACT: ADDRESSES: Written comments on the Division, Office of Protected Resources, Amy Fowler, Office of Protected PEPD and/or permit application should National Marine Fisheries Service. Resources, NMFS, (301) 427–8401. [FR Doc. 2020–28229 Filed 12–21–20; 8:45 am] be addressed to Emi Melton; NMFS, SUPPLEMENTARY INFORMATION: West Coast Regional Office; 1201 NE BILLING CODE 3510–22–P Lloyd Blvd., Suite 1100, Portland, OR Background 97232. Comments may be submitted by Sections 101(a)(5)(A) and (D) of the DEPARTMENT OF COMMERCE email. The mailbox address for Marine Mammal Protection Act (MMPA; providing email comments is: National Oceanic and Atmospheric 16 U.S.C. 1361 et seq.) direct the [email protected]. Administration Secretary of Commerce (as delegated to Include in the subject line of the email NMFS) to allow, upon request, the comment the following identifier: [RTID 0648–XA700] incidental, but not intentional, taking of Comments on Skykomish River PEPD small numbers of marine mammals by Takes of Marine Mammals Incidental to and/or permit application. U.S. citizens who engage in a specified Specified Activities; Taking Marine The documents are available on the activity (other than commercial fishing) Mammals Incidental to Erickson internet at: https:// within a specified geographical region if www.fisheries.noaa.gov/action/ Residence Marine Access Project in Juneau, Alaska certain findings are made and either skykomish-summer-steelhead-hatchery- regulations are issued or, if the taking is program-and-sunset-falls-trap-and-haul- AGENCY: National Marine Fisheries limited to harassment, a notice of a program. Service (NMFS), National Oceanic and proposed authorization is provided to FOR FURTHER INFORMATION CONTACT: Emi Atmospheric Administration (NOAA), the public for review. Melton at (503) 736–4739 or by email at Commerce. An authorization for incidental [email protected]. ACTION: Notice; issuance of Incidental takings shall be granted if NMFS finds SUPPLEMENTARY INFORMATION Harassment Authorization (IHA). that the taking will have a negligible impact on the species or stock(s), will ESA-Listed Species Covered in This SUMMARY: NMFS has received a request not have an unmitigable adverse impact Notice from Jim Erickson for the re-issuance of on the availability of the species or a previously issued incidental • Puget Sound Chinook Salmon stock(s) for subsistence uses (where harassment authorization with the only (Oncorhynchus tshawytscha): relevant), and if the permissible change being effective dates. The initial threatened, naturally and artificially methods of taking and requirements IHA authorized take of seven species of pertaining to the mitigation, monitoring propagated marine mammals, by Level A and Level • Puget Sound Steelhead and reporting of such takings are set B harassment, incidental to construction (Oncorhynchus mykiss): threatened, forth. associated with the Erickson Residence naturally and artificially propagated NMFS has defined ‘‘negligible Marine Access Project in Juneau, impact’’ in 50 CFR 216.103 as an impact Background Alaska. The project has been delayed resulting from the specified activity that The Tulalip Tribes and Washington and none of the work covered in the cannot be reasonably expected to, and is Department of Fish and Wildlife initial IHA has been conducted. The not reasonably likely to, adversely affect (collectively the co-managers) have initial IHA was effective from January 1, the species or stock through effects on submitted an HGMP to NMFS pursuant 2020 through December 31, 2020. Mr. annual rates of recruitment or survival. to limit 6 of the ESA 4(d) Rule for a Erickson has requested re-issuance with The MMPA states that the term ‘‘take’’ summer steelhead hatchery program in new effective dates of January 1, 2021 means to harass, hunt, capture, kill or the Skykomish River basin. The through December 31, 2021. The scope attempt to harass, hunt, capture, or kill hatchery program is intended to of the activities and anticipated effects any marine mammal. contribute to fulfilling Federal tribal remain the same, authorized take Except with respect to certain trust responsibilities and treaty rights numbers are not changed, and the activities not pertinent here, the MMPA guaranteed through treaties and required mitigation, monitoring, and defines ‘‘harassment’’ as any act of affirmed in U.S. v. Washington (1974). reporting remains the same as included pursuit, torment, or annoyance which (i) It is also designed to contribute to the in the initial IHA. NMFS is, therefore, has the potential to injure a marine survival and recovery of Puget Sound issuing a second identical IHA to cover mammal or marine mammal stock in the steelhead and produce summer the incidental take analyzed and wild (Level A harassment); or (ii) has steelhead for sustainable fisheries. authorized in the initial IHA. the potential to disturb a marine Washington Department of Fish and DATES: This authorization is effective mammal or marine mammal stock in the Wildlife has also submitted an ESA from January 1, 2021 through December wild by causing disruption of behavioral section 10(a)(1)(A) permit application 31, 2021. patterns, including, but not limited to, for a trap and haul program in the ADDRESSES: An electronic copy of the migration, breathing, nursing, breeding, Skykomish River basin. The trap and final 2020 IHA previously issued to Mr. feeding, or sheltering (Level B haul program traps various species of Erickson, Mr. Erickson’s application, harassment). salmon, steelhead, and trout, and hauls and the Federal Register notices Summary of Request them above Sunset Falls to provide proposing and issuing the initial IHA better habitat for these species. may be obtained by visiting https:// On November 27, 2019, NMFS www.fisheries.noaa.gov/action/ published final notice of our issuance of Authority incidental-take-authorization-erickson- an IHA authorizing take of marine 16 U.S.C. 1531 et seq.; 16 U.S.C. 742a residence-marine-access-project-auke- mammals incidental to the Erickson et seq.; § 222.303 also issued under 16 bay-alaska. In case of problems Residence Marine Access Project (84 FR U.S.C. 1361 et seq. accessing these documents, please call 65360). The effective dates of that IHA

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were January 1, 2020 through December methods of estimating take are identical with categories of activities identified in 31, 2020. On December 2, 2020, Mr. to those used in the initial IHA. NMFS CE B4 of the Companion Manual for Erickson informed NMFS that the has reviewed recent Stock Assessment NOAA Administrative Order 216–6A, project was delayed. None of the work Reports, information on relevant which do not individually or identified in the initial IHA (e.g., pile Unusual Mortality Events, and recent cumulatively have the potential for driving and removal) has occurred. Mr. scientific literature, and determined that significant impacts on the quality of the Erickson submitted a request for a new no new information affects our original human environment and for which we identical IHA that would be effective analysis of impacts or take estimate have not identified any extraordinary from January 1, 2021 through December under the initial IHA. circumstances that would preclude this We refer to the documents related to 31, 2021, in order to conduct the categorical exclusion. construction work that was analyzed the previously issued IHA, which and authorized through the previously include the Federal Register notice of Endangered Species Act (ESA) issued IHA. Therefore, re-issuance of the issuance of the initial 2020 IHA for the IHA is appropriate. Mr. Erickson’s construction work (84 FR Section 7(a)(2) of the Endangered 65360; November 27, 2019), Mr. Species Act of 1973 (ESA: 16 U.S.C. Summary of Specified Activity and Erickson’s application, the Federal 1531 et seq.) requires that each Federal Anticipated Impacts Register notice of the proposed IHA (84 agency insure that any action it The planned activities (including FR 50387; September 25, 2019), and all authorizes, funds, or carries out is not mitigation, monitoring, and reporting), associated references and documents. likely to jeopardize the continued authorized incidental take, and Determinations existence of any endangered or anticipated impacts on the affected threatened species or result in the stocks are the same as those analyzed Mr. Erickson will conduct activities as destruction or adverse modification of analyzed in the initial 2020 IHA. As and authorized through the previously designated critical habitat. To ensure issued IHA. described above, the number of ESA compliance for the issuance of Mr. Erickson plans to replace his authorized takes of the same species and IHAs, NMFS consults internally, in this private moorage facility in Auke Bay in stocks of marine mammals are identical Juneau, Alaska to provide a safer, more to the numbers that were found to meet case with the Alaska Regional Office, accessible and secure dock. Six 12- to the negligible impact and small whenever we propose to authorize take 16-inch (in) timber piles will be numbers standards and authorized for endangered or threatened species. removed using a vibratory hammer, and under the initial IHA and no new The effects of this proposed Federal six steel pipe piles (four 12.75-in steel information has emerged that would action were adequately analyzed in pipe piles and two 20-in steel pipe change those findings. The re-issued NMFS’ Biological Opinion for the piles) will be installed using vibratory 2021 IHA includes identical required Erickson Residence Marine Access and impact hammers over the course of mitigation, monitoring, and reporting Project, dated November 15, 2019, up to eight days. Of those eight days, measures as the initial IHA, and there is which concluded that the take NMFS impact pile driving may occur on up to no new information suggesting that our proposed to authorize through this IHA four days and vibratory pile removal analysis or findings should change. would not jeopardize the continued and installation may occur on up to six Based on the information contained existence of any endangered or days. Drilling may be required to install here and in the referenced documents, threatened species or destroy or the larger diameter steel piles. If NMFS has determined the following: (1) adversely modify any designated critical required, drilling may occur on up to The required mitigation measures will habitat. two days. Vibratory pile removal and effect the least practicable impact on installation, impact pile installation, marine mammal species or stocks and Authorization and drilling would introduce their habitat; (2) the authorized takes underwater sounds at levels that may will have a negligible impact on the NMFS has issued an IHA to Jim result in take, by Level A and Level B affected marine mammal species or Erickson for in-water construction harassment, of marine mammals in stocks; (3) the authorized takes activities associated with the specified Auke Bay. The location, timing, and represent small numbers of marine activity from January 1, 2021 through nature of the activities, including the mammals relative to the affected stock December 31, 2021. All previously types of equipment planned for use, are abundances; and (4) Mr. Erickson’s described mitigation, monitoring, and identical to those described in the initial activities will not have an unmitigable reporting requirements from the initial IHA. The mitigation and monitoring are adverse impact on taking for subsistence 2020 IHA are incorporated. also as prescribed in the initial IHA. purposes as no relevant subsistence uses Dated: December 16, 2020. Species that are expected to be taken of marine mammals are implicated by by the planned activity include harbor this action. Donna S. Wieting, porpoise (Phocoena phocoena), Dall’s Director, Office of Protected Resources, porpoise (Phocoenoides dalli), harbor National Environmental Policy Act National Marine Fisheries Service. seal (Phoca vitulina), Steller sea lion To comply with the National [FR Doc. 2020–28170 Filed 12–21–20; 8:45 am] (Eumetopias jubatus), California sea Environmental Policy Act of 1969 BILLING CODE 3510–22–P lion (Zalophus californianus), (NEPA; 42 U.S.C. 4321 et seq.) and humpback whale (Megaptera NOAA Administrative Order (NAO) novaeangliae), minke whale 216–6A, NMFS must review our (Balaenoptera acutorostrata), and killer proposed action with respect to whale (Orcinus orca). A description of environmental consequences on the the methods and inputs used to estimate human environment. take anticipated to occur and, Accordingly, NMFS has determined ultimately, the take that was authorized that the issuance of the IHA qualifies to is found in the previous documents be categorically excluded from further referenced above. The data inputs and NEPA review. This action is consistent

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DEPARTMENT OF COMMERCE Frequency: As required. FOR FURTHER INFORMATION CONTACT: Respondent’s Obligation: Mandatory. Celeste Stout, phone: (301) 427–8436 or National Oceanic and Atmospheric Legal Authority: 50 CFR 665. email: [email protected]. Administration This information collection request SUPPLEMENTARY INFORMATION: Section 9 may be viewed at www.reginfo.gov. Agency Information Collection of the ESA and Federal regulations Follow the instructions to view the prohibit the ‘taking’ of a species listed Activities; Submission to the Office of Department of Commerce collections Management and Budget (OMB) for as endangered or threatened. The ESA currently under review by OMB. defines ‘‘take’’ to mean harass, harm, Review and Approval; Comment Written comments and Request; Non-Commercial Permit and pursue, hunt, shoot, wound, kill, trap, recommendations for the proposed capture, or collect, or to attempt to Reporting Requirements in the Main information collection should be Hawaiian Islands Bottomfish Fishery engage in any such conduct. NMFS may submitted within 30 days of the issue permits, under limited The Department of Commerce will publication of this notice on the circumstances to take listed species submit the following information following website https:// incidental to, and not the purpose of, collection request to the Office of www.reginfo.gov/public/do/PRAMain. otherwise lawful activities. Section Management and Budget (OMB) for Find this particular information 10(a)(1)(B) of the ESA provides for review and clearance in accordance collection by selecting ‘‘Currently under authorizing incidental take of listed with the Paperwork Reduction Act of Review—Open for Public Comments’’ or species. NMFS regulations governing 1995, on or after the date of publication by using the search function and permits for threatened and endangered of this notice. We invite the general entering either the title of the collection species are promulgated at 50 CFR public and other Federal agencies to or the OMB Control Number 0648–0577. 222.307. comment on proposed, and continuing Sheleen Dumas, information collections, which helps us Background assess the impact of our information Department PRA Clearance Officer, Office of the Chief Information Officer, Commerce NMFS received a permit application collection requirements and minimize Department. from MBI on January 31, 2020. Based on the public’s reporting burden. Public [FR Doc. 2020–28174 Filed 12–21–20; 8:45 am] our initial review of the application and comments were previously requested BILLING CODE 3510–22–P conservation plan, we requested further via the Federal Register on August 24, information and clarification. On March 2020, during a 60-day comment period. 30, 2020, MBI submitted a revised and This notice allows for an additional 30 DEPARTMENT OF COMMERCE complete application for the take of days for public comments. ESA-listed shortnose sturgeon, Atlantic Agency: NOAA National Marine National Oceanic and Atmospheric sturgeon and Atlantic salmon due to the Fisheries Service. Administration sampling of non-ESA listed fish in the Title: Non-commercial Permit and Lower Kennebec River. MBI proposes to [RTID 0648–XA721] Reporting Requirements in the Main continue an 18 yearlong (2002–19) Hawaiian Islands Bottomfish Fishery. Endangered Species; File No. 23861 systematic assessment of the fish OMB Control Number: 0648–0577. assemblages at seven sites in an Form Number(s): None. AGENCY: National Marine Fisheries Type of Request: Regular submission approximate 17.5 mile (28.2 km) reach Service (NMFS), National Oceanic and (extension of a currently approved of the Lower Kennebec River and three Atmospheric Administration (NOAA), collection). sites in a 6 mile (9.7 km) reach of the Number of Respondents: 100. Commerce. Sebasticook River. MBI will conduct Average Hours per Response: 15 ACTION: Notice; issuance of permit. boat electrofishing where electric minutes per permit application; 2 hours current is generated by a Smith-Root SUMMARY: per appeal of denied permit; 20 minutes Notice is hereby given that Generator Powered Pulsator and per logbook form. NMFS has issued an Incidental Take transmitted into the water by an Total Annual Burden Hours: 69. Permit (ITP) (No. 23861) to Midwest electrode array suspended from the bow Needs and Uses: Each boat-based non- Biodiversity Institute (MBI), pursuant to of 16–18 foot long (25–29 km) jon boats commercial fisherman and vessel owner the Endangered Species Act (ESA) of or a 16 foot long inflatable Wing raft. who fishes for bottomfish management 1973, as amended, for the incidental NMFS determined that the application unit and ecosystem component species take of shortnose sturgeon (Acipenser contained sufficient information for in the federal waters of the main brevirostrum), Gulf of Main Distinct review and consideration under section Hawaiian Islands must obtain a non- population segment (GOM DPS) 10(a)(1)(B) of the ESA. NMFS then commercial bottomfish fishing permit Atlantic sturgeon, or the New York provided an opportunity for public from the NMFS or hold a State of Bight (NYB DPS) of Atlantic sturgeon. review of MBI’s application and Hawaii Commercial Marine License. (A. oxyrinchus) and the GOM DPS Conservation Plan. On April 17, 2020, Each permitted vessel owner or operator Atlantic salmon (Salmo salar) NMFS published a notice of receipt must submit a logsheet report after the associated with the otherwise lawful (NOR) of the MBI application in the conclusion of every fishing trip. The sampling of non-ESA listed fish in the Federal Register (85 FR 21413). The permit is required for all vessel owners, Lower Kennebec River. The permit is comment period ended on May 18, 2020 operators, and fishermen. The issued for a duration of 10 years. and six comments were received. Two information from the permit and ADDRESSES: The incidental take permit, of these comments did not pertain to the logsheet are used by NMFS, the Western final environmental assessment, and notice and four were considered Pacific Fishery Management Council, other related documents are available on relevant. Two of these comments and federal enforcement agencies to the NMFS Office of Protected Resources consisted of uploaded letters. The first monitor and manage the fishery. website at https:// was from the Maine Council of the Affected Public: Individuals or www.fisheries.noaa.gov/action/ Atlantic Salmon Federation and the households; business or other for-profit incidental-take-permit-midwest- Maine Council of Trout Unlimited and organizations. biodiversity-institute. the second was from The Nature

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Conservancy in Maine. In these letters individual will not be removed from the their supporting ‘‘low effect’’ Habitat these organizations expressed their water. Otherwise, affected fish that Conservation Plans under section support of MBI’s application for an ITP. leave the electric field under their own 10(a)(1)(B) of the ESA. Additionally Of the two additional comments one power and appear to be uninjured will there are no extraordinary commenter was opposed to the killing not be pursued and netted. In such circumstances with the potential for of any fish. This is not consistent with cases, the species identification and significant environmental effects that the ESA, which allows for the incidental estimation of length will be made would preclude the issuance of this take of listed species if certain criteria visually. (f) Sampling will not be permit type from being categorically are met and a permit is issued by NMFS. conducted when ambient water excluded. ° Additionally, lethal take is not temperature is >22 C per Maine DMR Dated: December 17, 2020. authorized for this permit. The other specifications (Bruchs et al. 2016). Angela Somma, commenter seemed confused regarding Temperature will be routinely measured the requirements of the ESA and the ITP at the start of each electrofishing site, Chief, Endangered Species Conservation process. NMFS and MBI held further Division, Office of Protected Resources, but will be more frequently monitored National Marine Fisheries Service. discussions regarding information that (every 2 hours) when temperatures are [FR Doc. 2020–28228 Filed 12–21–20; 8:45 am] would be incorporated in the between 20–22 °C. (g) When there is any Conservation Plan and a final interaction with a listed species all BILLING CODE 3510–22–P application and Conservation Plan was sampling activities will cease and the submitted on July 6, 2020. electric current will be shut off for a DEPARTMENT OF COMMERCE Conservation Plan period of 5 minutes and/or until the individual fish are released and National Oceanic and Atmospheric Section 10 of the ESA specifies that determined to have departed the area. Administration no permit may be issued unless an Notation will be made about the applicant submits an adequate physical condition of the individual in Agency Information Collection conservation plan. The conservation terms of the reaction to the electric field Activities; Submission to the Office of plan prepared by MBI describes and if it was able to leave the area under Management and Budget (OMB) for measures designed to minimize and its own power. Photographs will be Review and Approval; Comment mitigate the impacts of any incidental taken of each interaction to document Request; Weather Modification take of ESA-listed shortnose sturgeon, occurrence and any evidence of injury. Activities Reports Atlantic sturgeon and Atlantic salmon. At present, the project is funded by To avoid and minimize take of ESA MBI research and development funds, AGENCY: National Oceanic & listed species MBI is required to but MBI continues to seek external Atmospheric Administration (NOAA), implement the following minimization funding. This project has been ongoing Commerce. measures: (a) Conduct sampling for 18 years and is one of the longest ACTION: Notice; request for comment. between mid-September and mid- running biological monitoring projects October to minimize any encounters in New England and the only sustained SUMMARY: The Department of with early life stage or juvenile fish. (b) effort that focuses on large river fish Commerce, in accordance with the MBI will request any recent acoustic assemblages. Paperwork Reduction Act of 1995 detections of ESA listed species in the (PRA), invites the general public and study area and take steps to avoid any Permit 23861 other Federal agencies to comment on congregations of listed species. (c) Only NMFS authorizes the following non- proposed, and continuing information trained and qualified MBI crew leaders lethal incidental takes: collections, which helps us assess the and either MBI or Maine Department of • Four (adult/subadult) Gulf of Maine impact of our information collection Marine Resources (DMR) agency & New York Bight DPS Atlantic requirements and minimize the public’s technicians will be allowed to carry out sturgeon; reporting burden. The purpose of this the sampling activities. The MBI crew • Four (adult/subadult) Shortnose notice is to allow for 60 days of public leader will review the ESA listed sturgeon; and comment preceding submission of the species minimization and avoidance • Five (adult/subadult) Gulf of Maine collection to OMB. procedures with the sampling crew at DPS Atlantic salmon. DATES: To ensure consideration, the beginning of each sampling day. In National Environmental Policy Act comments regarding this proposed addition Maine DMR procedures information collection must be received (Bruchs et al. 2016) for electrofishing Issuing an ESA section 10(a)(1)(B) on or before February 22, 2021. will be included in the training and permit constitutes a Federal action ADDRESSES: Interested persons are instructions. (d) Sampling and the requiring NMFS to comply with the invited to submit written comments to operation of the electrofishing gear will National Environmental Policy Act Adrienne Thomas, NOAA PRA Officer, be done in a manner that minimizes the (NEPA; 42 U.S.C. 4321 et seq.) as at [email protected]. Please potential for injury to the listed species. implemented by 40 CFR parts 1500– reference OMB Control Number 0648– The pulse frequency will be reduced to 1508 and NOAA Administrative Order 30–60Hz when sampling in areas of 216–6, Environmental Review 0025 in the subject line of your prior interaction with ESA listed species Procedures for Implementing the comments. Do not submit Confidential to minimize the risk of injury. (e) National Policy Act (1999). NMFS has Business Information or otherwise Electric current and sampling activity determined that the activity proposed is sensitive or protected information. will cease upon an encounter where a categorically excluded from the FOR FURTHER INFORMATION CONTACT: listed species is observed to be affected requirement to prepare an Requests for additional information or by the electric field. Affected sturgeon, environmental assessment or specific questions related to collection if immobilized and/or in apparent environmental impact statement. This activities should be directed to OAR distress, may be netted or otherwise action falls within the B3 category— Weather Program Office at handled in order to ascertain any injury Issuance of, and amendments to, ‘‘low [email protected]. and to revive if necessary, but the effect’’ Incidental Take Permits and SUPPLEMENTARY INFORMATION

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I. Abstract Affected Public: Business or other for- While you may ask us in your comment This is a request for extension of a profit organizations. to withhold your personal identifying Estimated Number of Respondents: currently approved information information from public review, we 50. collection. The National Oceanic & cannot guarantee that we will be able to Estimated Time per Response: 60 do so. Atmospheric Administration’s Office of minutes per initial report; 30 minutes Atmospheric Research (OAR)/Weather per final report. Sheleen Dumas, Program Office is conducting this Estimated Total Annual Burden Department PRA Clearance Officer, Office of information collection pursuant to Hours: 75 hours. the Chief Information Officer, Commerce Section 6(b) of Public Law 92–205. This Estimated Total Annual Cost to Department. law requires that all non-federal weather Public: $0. [FR Doc. 2020–28216 Filed 12–21–20; 8:45 am] modification activities (e.g., cloud Respondent’s Obligation: Mandatory. BILLING CODE 3510–KD–P seeding) in the United States (U.S.) and Legal Authority: Public Law 92–205, its territories be reported to the Weather Modification Reporting Act of Secretary of Commerce through NOAA. 1972. This reporting is critical for gauging the DEPARTMENT OF DEFENSE scope of these activities, for determining IV. Request for Comments the possibility of duplicative operations We are soliciting public comments to Office of the Secretary or of interference with another project, permit the Department/Bureau to: (a) for providing a database for checking Evaluate whether the proposed [Transmittal No. 20–86] information collection is necessary for atmospheric changes against the Arms Sales Notification reported activities, and for providing a the proper functions of the Department, single source of information on the including whether the information will AGENCY: Defense Security Cooperation safety and environmental factors used in have practical utility; (b) Evaluate the Agency, Department of Defense (DoD). weather modification activities in the accuracy of our estimate of the time and ACTION: Arms sales notice. U.S. Two forms are collected under this cost burden for this proposed collection, OMB Control Number: One prior to and including the validity of the SUMMARY: The Department of Defense is one after the activity. The requirements methodology and assumptions used; (c) publishing the unclassified text of an are detailed in 15 CFR part 908. This Evaluate ways to enhance the quality, arms sales notification. data is used for scientific research, utility, and clarity of the information to FOR FURTHER INFORMATION CONTACT: historical statistics, international reports be collected; and (d) Minimize the Karma Job at [email protected] and other purposes. reporting burden on those who are to or (703) 697–8976. respond, including the use of automated II. Method of Collection SUPPLEMENTARY INFORMATION: This collection techniques or other forms of 36(b)(1) arms sales notification is Respondents have a choice of either information technology. published to fulfill the requirements of Comments that you submit in electronic or paper forms. Methods of section 155 of Public Law 104–164 response to this notice are a matter of submittal include email of electronic dated July 21, 1996. The following is a public record. We will include or forms, mail and facsimile transmission copy of a letter to the Speaker of the summarize each comment in our request of paper forms. House of Representatives, Transmittal to OMB to approve this ICR. Before 20–86 with attached Policy Justification III. Data including your address, phone number, and Sensitivity of Technology. OMB Control Number: 0648–0025. email address, or other personal Form Number(s): NOAA Forms 17–4 identifying information in your Dated: December 17, 2020. and 17–4A. comment, you should be aware that Kayyonne T. Marston, Type of Review: Regular submission your entire comment—including your Alternate OSD Federal Register Liaison (extension of a current information personal identifying information—may Officer, Department of Defense. collection). be made publicly available at any time. BILLING CODE 5001–06–P

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BILLING CODE 5001–06–C Total ...... $39 million ammunition; books and other Transmittal No. 20–86 (iii) Description and Quantity or publications; software; training; engineering technical assistance and Notice of Proposed Issuance of Letter of Quantities of Articles or Services under other technical assistance; and other Offer Pursuant to Section 36(b)(1) of the Consideration for Purchase: related elements of program and Arms Export Control Act, as amended Major Defense Equipment (MDE): Two (2) MK 15 MOD 25 Phalanx Close- logistical support. (i) Prospective Purchaser: Republic of In Weapons System (CIWS) Block 1B (iv) Military Department: Navy (KS– Korea Baseline 2 (1B2) Systems P–LRH) (ii) Total Estimated Value: Four thousand (4,000) Rounds, 20MM (v) Prior Related Cases, if any: None Major Defense Equipment * .. $30 million Cartridge API Linked Other ...... $ 9 million Non-MDE: Also included are spare (vi) Sales Commission, Fee, etc., Paid, parts; other support equipment; Offered, or Agreed to be Paid: None

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(vii) Sensitivity of Technology Implementation of this proposed sale to develop countermeasures that might Contained in the Defense Article or will not require the assignment of any reduce weapon system effectiveness or Defense Services Proposed to be Sold: additional U.S. Government or be used in the development of a system See Attached Annex contractor representatives to the with similar or advanced capabilities. (viii) Date Report Delivered to Republic of Korea. However, U.S. 4. A determination has been made Congress: December 1, 2020 Government or contractor personnel in- that the Republic of Korea can provide *As defined in Section 47(6) of the country visits will be required on a substantially the same degree of Arms Export Control Act. temporary basis in conjunction with protection for the sensitive technology program technical oversight and support being released as the U.S. Government. POLICY JUSTIFICATION requirements, including multiple trips This sale is necessary in furtherance of Republic of Korea—MK 15 MOD 25 by U.S. Government and contractor the U.S. foreign policy and national Phalanx Close-In Weapons System representatives to participate in program security objectives outlined in the (CIWS) Block 1B Baseline 2 (1B2) and technical reviews, as well as to Policy Justification. System provide training and maintenance 5. All defense articles and services support in country, as required. The Republic of Korea has requested listed in this transmittal have been There will be no adverse impact on to buy two (2) MK 15 MOD 25 Phalanx authorized for release and export to the U.S. defense readiness as a result of this Republic of Korea. Close-In Weapons System (CIWS) Block proposed sale. 1B Baseline 2 (IB2) systems; and four [FR Doc. 2020–28198 Filed 12–21–20; 8:45 am] thousand (4,000) rounds, 20MM Transmittal No. 20–86 BILLING CODE 5001–06–P cartridge API linked. Also included are Notice of Proposed Issuance of Letter of spare parts; other support equipment; Offer Pursuant to Section 36(b)(1) of the DEPARTMENT OF DEFENSE ammunition; books and other Arms Export Control Act publications; software; training; engineering technical assistance and Annex Office of the Secretary other technical assistance; and other Item No. vii [Transmittal No. 20–87] related elements of program and (vii) Sensitivity of Technology: logistical support. The estimated total 1. The MK 15 MOD 25 Phalanx Close- Arms Sales Notification cost is $39 million. In Weapon System (CIWS) consists of a This proposed sale will support the rapid-fire computer-controlled radar AGENCY: Defense Security Cooperation foreign policy goals and national and gun system mounted on a turret Agency, Department of Defense (DoD). security objectives of the United States designed to defeat anti-ship missiles; ACTION: Arms sales notice. by improving the security of a Major small surface craft; low, slow aircraft; Non-NATO Ally that is a force for rockets and mortars. The weapons SUMMARY: The Department of Defense is political stability and economic progress system carries out search, detection, publishing the unclassified text of an in the Pacific region. target threat evaluation, tracking, firing arms sales notification. The proposed sale will improve the and kill loop fire control that uses FOR FURTHER INFORMATION CONTACT: Republic of Korea’s capability to meet advanced radar and computer Karma Job at [email protected] current and future threats. Korea will technology to locate, identify and direct or (703) 697–8976. use the systems aboard its first KDX III a system of armor piercing projectiles to SUPPLEMENTARY INFORMATION: This Batch II Class ship to provide it with the target. The Phalanx Block IB 36(b)(1) arms sales notification is effective means of detecting and Baseline 2 (1B2) Radar Upgrade Kits published to fulfill the requirements of defending itself against incoming converted the system’s radar from an section 155 of Public Law 104–164 airborne threats. The Republic of Korea analog to digital suite, and in doing so dated July 21, 1996. The following is a will have no difficulty absorbing this addressed significant hardware copy of a letter to the Speaker of the equipment into its armed forces. obsolescence. House of Representatives, Transmittal The proposed sale of this equipment 2. The highest level of classification of 20–87 with attached Policy Justification and support will not alter the basic defense articles, components, and and Sensitivity of Technology. military balance in the region. services included in this potential sale The principal contractor will be is CONFIDENTIAL. Dated: December 17, 2020. Raytheon Missile and Defense, 3. If a technologically advanced Kayyonne T. Marston, Louisville, KY. There are no known adversary were to obtain knowledge of Alternate OSD Federal Register Liaison offset agreements proposed in the specific hardware and software Officer, Department of Defense. connection with this potential sale. elements, the information could be used BILLING CODE 5001–06–P

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BILLING CODE 5001–06–C Major Defense Equipment * $ 0 million Communications System (FICS), Transmittal No. 20–87 Other ...... $280 million consisting of: Major Defense Equipment (MDE): Notice of Proposed Issuance of Letter of Total ...... $280 million None Offer Pursuant to Section 36(b)(1) of the Non-MDE: One hundred fifty-four Arms Export Control Act, as Amended (iii) Description and Quantity or (154) Communications Nodes (CN) with (i) Prospective Purchaser: Taipei Quantities of Articles or Services under S–788 Type III shelter; twenty-four (24) Economic and Cultural Representative Consideration for Purchase: TECRO has Communication Relays with S–788 Office in the United States (TECRO) requested to buy a Field Information Type III shelter; eight (8) Network (ii) Total Estimated Value: Management Systems (NMS) with S–

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788 Type III shelter; Basic Issue Items interests by supporting the recipient’s both mobile and wire subscribers with (BII); program management support; continuing efforts to modernize its a means to exchange command, control, verification testing; system technical armed forces and to maintain a credible communications, and intelligence support; transportation; spare and repair defensive capability. The proposed sale information in a dynamic tactical parts; communication support will help improve the security of the environment. equipment; communication equipment recipient and assist in maintaining 2. The highest level of classification of integration; tools and test equipment; political stability, military balance, defense articles, components, and personnel training and training economic and progress in the region. services included in this potential sale equipment; initial repair and return This proposed sale is designed to is UNCLASSIFIED. program; Additional Authorized List provide mobile and secure 3. If a technologically advanced (AAL); technical manuals; Quality communications. It will contribute to adversary were to obtain knowledge of Assurance Team (QAT); U.S. the recipient’s goal to modernize its the hardware and software elements, the Government and contractor engineering; military communication’s capability in information could be used to develop technical and logistics support services; support of their mission and operational countermeasures or equivalent systems, contractor provided training; Field needs. The recipient will have no which might reduce system Service Representatives (FSR); and other difficulty absorbing these systems into effectiveness or be used in the related elements of logistics and its armed forces. development of a system with similar or The proposed sale of this equipment program support. advanced capabilities. (iv) Military Department: Army (TW– and support will not alter the basic B–ZAW) military balance in the region. 4. A determination has been made (v) Prior Related Cases, if any: None The principal contractor is currently that the recipient can provide (vi) Sales Commission, Fee, etc., Paid, unknown due to a pending open substantially the same degree of Offered, or Agreed to be Paid: None competition for selection. The purchaser protection for the sensitive technology (vii) Sensitivity of Technology typically requests offsets. Any offset being released as the U.S. Government. Contained in the Defense Article or agreement will be defined in This sale is necessary in furtherance of Defense Services Proposed to be Sold: negotiations between the purchaser and the U.S. foreign policy and national See Attached Annex the contractor(s). security objectives outlined in the (viii) Date Report Delivered to Implementation of this proposed sale Policy Justification. Congress: December 7, 2020 will not require the permanent 5. All defense articles and services *As defined in Section 47(6) of the assignment of any additional U.S. listed in this transmittal have been Arms Export Control Act. Government or contractor authorized for release and export to the POLICY JUSTIFICATION representatives to the recipient. recipient. Contractor representative and U.S. [FR Doc. 2020–28201 Filed 12–21–20; 8:45 am] Taipei Economic and Cultural Government support teams may be BILLING CODE 5001–06–P Representative Office in the United required to travel to the country on a States (TECRO)—Field Information temporary basis. Communications System (FICS) There will be no adverse impact on DEPARTMENT OF DEFENSE TECRO has requested to buy a Field U.S. defense readiness as a result of this Information Communications System proposed sale. Office of the Secretary (FICS), consisting of one hundred fifty- Transmittal No. 20–87 four (154) Communications Nodes (CN) [Transmittal No. 20–83] with S–788 Type III shelter; twenty-four Notice of Proposed Issuance of Letter of (24) Communication Relays with S–788 Offer Pursuant to Section 36(b)(1) of the Arms Sales Notification Type III shelter; eight (8) Network Arms Export Control Act AGENCY: Defense Security Cooperation Management Systems (NMS) with S– Annex 788 Type III shelter; Basic Issue Items Agency, Department of Defense (DoD). (BII); program management support; Item No. vii ACTION: Arms sales notice. verification testing; system technical (vii) Sensitivity of Technology: support; transportation; spare and repair 1. The Field Information SUMMARY: The Department of Defense is parts; communication support Communications System (FICS) is made publishing the unclassified text of an equipment; communication equipment up of commercially available, non- arms sales notification. integration; tools and test equipment; program of record components. The FOR FURTHER INFORMATION CONTACT: personnel training and training FICS system (also referred to as ‘‘Syun Karma Job at [email protected] equipment; initial repair and return Lien’’) is an area-switched or (703) 697–8976. communications system which is program; Additional Authorized List SUPPLEMENTARY INFORMATION: This designed to provide mobile and secure (AAL); technical manuals; Quality 36(b)(1) arms sales notification is communications in a wide range of Assurance Team (QAT); U.S. published to fulfill the requirements of battle situations. The FICS system Government and contractor engineering; section 155 of Public Law 104–164 provides mobile and secure voice and technical and logistics support services; dated July 21, 1996. The following is a data communications on an automatic, contractor provided training; Field copy of a letter to the Speaker of the discrete addressed, fixed-directory basis Service Representatives (FSR); and other House of Representatives, Transmittal to the military Tactical Operations related elements of logistics and 20–83 with attached Policy Justification Center (TOC)-level command posts program support. The total estimated and Sensitivity of Technology. program cost is $280 million. (CPs), and remote (mobile) users This proposed sale is consistent with employing technological improvements Dated: December 17, 2020. U.S. law and policy as expressed in in radio transmissions, data networking Kayyonne T. Marston, Public Law 96–8. and packetized voice, while minimizing Alternate OSD Federal Register Liaison This proposed sale serves U.S. system footprint (power, size, personnel Officer, Department of Defense. national, economic, and security and logistics train). The system supports BILLING CODE 5001–06–P

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BILLING CODE 5001–06–C Other ...... $ 163.3 mil- Mid-Life Update (MLU) Block 15 F–16 Transmittal No. 20–83 lion aircraft fleet along with additional logistics support. Total ...... $175.4 mil- Notice of Proposed Issuance of Letter of Major Defense Equipment (MDE): Offer Pursuant to Section 36(b)(1) of the lion Eight (8) LN–260 Global Positioning Arms Export Control Act, as Amended (iii) Description and Quantity or System (GPS) Quantities of Articles or Services under (i) Prospective Purchaser: Government Consideration for Purchase: The Nineteen (19) Multifunctional of Romania Government of Romania has requested Information Distribution System Joint (ii) Total Estimated Value: to buy upgrades to the avionics, Tactical Radio Systems (MIDS JTRS) Major Defense Equipment * $ 12.1 mil- software, communication equipment, Non-MDE: Also included is AN/APX– lion navigational aids, and cockpit of its 126 Advanced Identification Friend or

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Foe (IFF); ARC–210 Radios; KIV–78 and ready self-defense capability. This operate in either normal, secure, and/or Cryptographic Appliques; other secure proposed sale will enhance U.S. jam-resistant modes. communications, navigation, and national security objectives in the 5. The KIV–78 is a crypto applique for encryption devices; Joint Mission region. IFF. It can be loaded with Mode 5 Planning System (JMPS) software; The proposed sale will improve classified elements. aircraft minor modification, integration Romania’s capability to meet current 6. The Joint Mission Planning System and test support, support equipment, and future threats by upgrading its (JMPS) is a multi-platform PC based software and software support; avionics to meet interoperability mission planning system. personnel training; spare and repair requirements for encrypted 7. The highest level of classification of parts; publications and technical communications systems used by NATO information included in this potential documentation; U.S. Government and forces. This increased secure sale is SECRET. contractor engineering, technical and communications capability will assist 8. If a technologically advanced logistical support services; and other Romania in the defense of its homeland adversary were to obtain knowledge of related elements of logistical and and U.S. personnel stationed there. the specific hardware and software program support. Romania has demonstrated a significant elements, the information could be used (iv) Military Department: Air Force financial commitment to modernizing to develop countermeasures that might (RO–D–QAN); Navy (RO–P–LBF) its military, which will further enhance reduce weapon system effectiveness or (v) Prior Related Cases, if any: RO–D– its interoperability with NATO. be used in the development of a system QAH Romania will have no difficulty with similar or advanced capabilities. (vi) Sales Commission, Fee, etc., Paid, absorbing these capabilities into its 9. A determination has been made Offered, or Agreed to be Paid: None armed forces. that Romania can provide substantially (vii) Sensitivity of Technology The proposed sale of this equipment the same degree of protection for the Contained in the Defense Article or and support will not alter the basic sensitive technology being released as Defense Services Proposed to be Sold: military balance in the region. the U.S. Government. This sale is See Attached Annex The principal contractor will be necessary in furtherance of the U.S. (viii) Date Report Delivered to Lockheed Martin Aeronautics Company foreign policy and national security Congress: November 3, 2020 of Fort Worth, TX. There are no known objectives outlined in the Policy *As defined in Section 47(6) of the offset agreements proposed in Justification. Arms Export Control Act. connection with this potential sale. 10. All defense articles and services Implementation of this proposed sale listed in this transmittal have been POLICY JUSTIFICATION will not require the assignment of U.S. authorized for release and export to the Romania—F–16 Modernization and Government or contractor Government of Romania. Logistics Support representatives in Romania. [FR Doc. 2020–28200 Filed 12–21–20; 8:45 am] There will be no adverse impact on The Government of Romania has U.S. defense readiness as a result of this BILLING CODE 5001–06–P requested to buy upgrades to the proposed sale. avionics, software, communication equipment, navigational aids, and Transmittal No. 20–83 DEPARTMENT OF EDUCATION cockpit of its Mid-Life Update (MLU) Notice of Proposed Issuance of Letter of [Docket No. ED–2020–SCC–0195] Block 15 F–16 aircraft fleet along with Offer Pursuant to Section 36(b)(1) of the additional logistics support. Included in Arms Export Control Act Agency Information Collection the aircraft modernization are eight (8) Annex Activities; Comment Request; National LN–260 Global Positioning System Blue Ribbon Schools Program (GPS) and nineteen (19) Multifunctional Item No. vii AGENCY: Office of Communications and Information Distribution System Joint (vii) Sensitivity of Technology: Tactical Radio Systems (MIDS JTRS). 1. The embedded GPS–INS (EGI) LN– Outreach (OCO), Department of Also included is AN/APX–126 260 is a sensor that combines GPS and Education (ED). Advanced Identification Friend or Foe inertial sensor inputs to provide ACTION: Notice. (IFF); ARC–210 Radios; KIV–78 accurate location information for Cryptographic Appliques; other secure SUMMARY: In accordance with the navigating and targeting. Paperwork Reduction Act of 1995, ED is communications, navigation, and 2. The Multifunctional Information proposing an extension to a currently encryption devices; Joint Mission Distribution System with Joint Tactical approved information collection. Planning System (JMPS) software; Radio System (MIDS JTRS) is an aircraft minor modification, integration advanced Link-16 command, control, DATES: Interested persons are invited to and test support, support equipment, communications, and intelligence (C3I) submit comments on or before February software and software support; system incorporating high-capacity, 22, 2021. personnel training; spare and repair jam-resistant, digital communications ADDRESSES: To access and review all the parts; publications and technical links for exchange of near real-time documents related to the information documentation; U.S. Government and tactical information, including both data collection listed in this notice, please contractor engineering, technical and and voice, among air, ground and sea use http://www.regulations.gov by logistical support services; and other elements. searching the Docket ID number ED– related elements of logistical and 3. The AN/APX–126 Advanced 2020–SCC–0195. Comments submitted program support. The estimated total Identification Friend or Foe (IFF) in response to this notice should be cost is $175.4 million. Combined Interrogator Transponder submitted electronically through the This proposed sale will support the (CIT) is a system capable of transmitting Federal eRulemaking Portal at http:// foreign policy goals and national and interrogating Mode 5. www.regulations.gov by selecting the security of the United States by helping 4. The ARC–210 UHF/VHF secure Docket ID number or via postal mail, to improve the security of a NATO ally radio with HAVE QUICK II is a voice commercial delivery, or hand delivery. in developing and maintaining a strong communications radio system that can If the regulations.gov site is not

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available to the public for any reason, Total Estimated Number of Annual ADDRESSES: For the addresses for ED will temporarily accept comments at Burden Hours: 16,695. obtaining and submitting an [email protected]. Please include the Abstract: Each year since 1982, the application, please refer to our Common docket ID number and the title of the U.S. Department of Education’s National Instructions for Applicants to information collection request when Blue Ribbon Schools Program has Department of Education Discretionary requesting documents or submitting sought out and celebrated great Grant Programs, published in the comments. Please note that comments American schools; schools that are Federal Register on February 13, 2019 submitted by fax or email and those demonstrating that all students can (84 FR 3768), and available at submitted after the comment period will achieve to high levels. The purpose of www.govinfo.gov/content/pkg/FR-2019- not be accepted. Written requests for the Program is to honor public and 02-13/pdf/2019-02206.pdf. information or comments submitted by private elementary, middle and high FOR FURTHER INFORMATION CONTACT: postal mail or delivery should be schools based on their overall academic Terry Jackson, U.S. Department of addressed to the PRA Coordinator of the excellence or their progress in closing Education, 400 Maryland Avenue SW, Strategic Collections and Clearance achievement gaps among different room 5128, Potomac Center Plaza, Governance and Strategy Division, U.S. groups of students. The Program is part Washington, DC 20202–5076. Department of Education, 400 Maryland of a larger U.S. Department of Education Telephone: (202) 245–6039. Email: Ave. SW, LBJ, Room 6W208B, effort to identify and disseminate [email protected]. Washington, DC 20202–8240. knowledge about best school leadership If you use a telecommunications FOR FURTHER INFORMATION CONTACT: For and teaching practices. device for the deaf (TDD) or a text specific questions related to collection Dated: December 17, 2020. telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1–800–877– activities, please contact Aba Kumi, Stephanie Valentine, 8339. 202–401–1767. PRA Coordinator, Strategic Collections and SUPPLEMENTARY INFORMATION: The Clearance, Governance and Strategy Division, SUPPLEMENTARY INFORMATION: Department of Education (ED), in Office of Chief Data Officer, Office of Full Text of Announcement accordance with the Paperwork Planning, Evaluation and Policy Reduction Act of 1995 (PRA) (44 U.S.C. Development. I. Funding Opportunity Description 3506(c)(2)(A)), provides the general [FR Doc. 2020–28251 Filed 12–21–20; 8:45 am] Purpose of Program: The purposes of public and Federal agencies with an BILLING CODE 4000–01–P the Educational Technology, Media, and opportunity to comment on proposed, Materials for Individuals with revised, and continuing collections of Disabilities Program are to improve information. This helps the Department DEPARTMENT OF EDUCATION results for children with disabilities by: assess the impact of its information (1) Promoting the development, Applications for New Awards; collection requirements and minimize demonstration, and use of technology; Educational Technology, Media, and the public’s reporting burden. It also (2) supporting educational activities Materials for Individuals With helps the public understand the designed to be of educational value in Disabilities Program—Stepping-Up Department’s information collection the classroom; (3) providing support for Technology Implementation requirements and provide the requested captioning and video description that is data in the desired format. ED is AGENCY: Office of Special Education and appropriate for use in the classroom; soliciting comments on the proposed Rehabilitative Services, Department of and (4) providing accessible educational information collection request (ICR) that Education. materials to children with disabilities in 1 is described below. The Department of ACTION: Notice. a timely manner. Education is especially interested in Priority: This competition includes public comment addressing the SUMMARY: The Department of Education one absolute priority. In accordance following issues: (1) Is this collection (Department) is issuing a notice inviting with 34 CFR 75.105(b)(2)(v), this necessary to the proper functions of the applications for new awards for fiscal priority is from allowable activities Department; (2) will this information be year (FY) 2021 for Educational specified in sections 674(c)(1)(D) and processed and used in a timely manner; Technology, Media, and Materials for 681(d) of the Individuals with (3) is the estimate of burden accurate; Individuals with Disabilities—Stepping- Disabilities Education Act (IDEA); 20 (4) how might the Department enhance up Technology Implementation, U.S.C. 1474(c)(1)(D) and 1481(d). the quality, utility, and clarity of the Assistance Listing Number 84.327S. Absolute Priority: For FY 2021 and information to be collected; and (5) how This notice relates to the approved any subsequent year in which we make might the Department minimize the information collection under OMB awards from the list of unfunded burden of this collection on the control number 1820–0028. applications from this competition, this priority is an absolute priority. Under 34 respondents, including through the use DATES: of information technology. Please note Applications Available: December 22, CFR 75.105(c)(3), we consider only that written comments received in 2020. applications that meet this priority. response to this notice will be Deadline for Transmittal of 1 Applicants should note that other laws, considered public records. Applications: February 22, 2021. including the Americans with Disabilities Act of Title of Collection: National Blue Deadline for Intergovernmental 1990 (42 U.S.C. 12101 et seq.; 28 CFR part 35) and Ribbon Schools Program. Review: April 21, 2021. section 504 of the Rehabilitation Act of 1973, as OMB Control Number: 1860–0506. Pre-Application Webinar Information: amended (29 U.S.C. 794; 34 CFR part 104), may No later than December 28, 2020, require that State educational agencies (SEAs) and Type of Review: An extension to a local educational agencies (LEAs) provide currently approved information OSERS will post pre-recorded captioning, video description, and other accessible collection. informational webinars designed to educational materials to students with disabilities Respondents/Affected Public: State, provide technical assistance to when these materials are necessary to provide equally integrated and equally effective access to Local, and Tribal Governments. interested applicants. The webinars may the benefits of the educational program or activity, Total Estimated Number of Annual be found at www2.ed.gov/fund/grant/ or as part of a ‘‘free appropriate public education’’ Responses: 420. apply/osep/new-osep-grants.html. as defined in 34 CFR 104.33.

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This priority is: promising evidence,2 into the provision environment instruction and Providing Technology-Based of teacher in-service training; and (b) professional growth; Professional Development to Trainers of provide ongoing technology-based (c) Develop an implementation Special Education Teachers to Support professional development and coaching package of products and resources that Children with Disabilities. for in-service trainers in the use of will help teacher in-service trainers to Background technology to, and understanding of use a technology-based tool or Technology has enhanced how the technology may support approach; and professional development learning teachers to, improve classroom and (d) Evaluate whether the in-service opportunities for teachers by expanding remote learning environment training conducted using the access to information and resources that instruction and learning outcomes for technology-based tool or approach support their content expertise and children with disabilities in pre- meets the project goals and target pedagogy and promote their kindergarten through grade 12 (PK–12) outcomes. professional growth. As an alternative to settings. In addition to these programmatic face-to-face professional development Priority requirements, to be considered for that can be expensive or impracticable funding under this priority, applicants (e.g., during an emergency), professional To be considered for funding under must meet the following application and development facilitated by technology this priority, applicants, at a minimum, administrative requirements in this has the potential to more efficiently must— priority: shape and impact teaching practices. (a) Build partnerships with LEAs, at (a) Demonstrate, in the narrative Some examples of the technologies that 3 least one of which is in a rural site and section of the application under can be used to support teacher learning that includes public and nonpublic ‘‘Significance,’’ how the proposed include, but are not limited to, virtual schools, to support teacher in-service project will— coaching, in which a coach interacts trainers in the understanding, use, and (1) Address the need for a technology- electronically with teachers to improve delivery of a technology-based tool or based tool or approach and identify teaching skills; learning management approach that will support teacher in- specific gaps and weaknesses, systems (LMS) that allow sharing of service training for instruction of documents and data in one central infrastructure, or opportunities to children with disabilities in PK–12 support teacher in-service training. To location; and gamification, which instructional settings, including involves bringing elements associated meet this requirement the applicant classrooms and remote learning must— with video games into the learning environments; environment to increase engagement (i) Identify a fully developed (b) Increase the capacity of teacher in- technology-based tool or approach that and making tasks challenging. service trainers to effectively use and McAleavy et al. (2018) noted that is based on at least promising evidence; deliver a technology-based tool or using technology to support teachers’ (ii) Identify how the technology-based approach 4 that supports teacher professional learning can promote tool or approach will improve teacher classroom and remote learning collaboration through professional in-service training and the capacity of learning communities and communities teachers to deliver instruction or 2 Promising evidence means that there is evidence services for PK–12 children with of practice. In addition, technology that of the effectiveness of a key project component in can be used to build the skills of improving a relevant outcome, based on a relevant disabilities; teachers and related services personnel finding from one of the following: (a) A practice (iii) Present applicable national, State, in rural or remote areas may be more guide prepared by the WWC reporting a ‘‘strong regional, or local data demonstrating the evidence base’’ or ‘‘moderate evidence base’’ for the need for the identified technology-based cost-effective than face-to-face trainings corresponding practice recommendation; (b) an and will offer flexibility that allows intervention report prepared by the WWC reporting tool or approach in teacher in-service teachers to train at a time and place that a ‘‘positive effect’’ or ‘‘potentially positive effect’’ training to support children with suits them. on a relevant outcome with no reporting of a disabilities; ‘‘negative effect’’ or ‘‘potentially negative effect’’ on (iv) Identify current policies, However, regardless of the delivery, a relevant outcome; or (c) a single study assessed effective professional development must by the Department, as appropriate, that is an procedures, and practices used by go beyond learning new materials and experimental study, a quasi-experimental design teacher in-service trainers that skills; it must also support teachers and study, or a well-designed and well-implemented incorporate technology-based tools or correlational study with statistical controls for approaches to meet their training needs; related services personnel in improving selection bias (e.g., a study using regression classroom instruction and student methods to account for differences between a (v) Identify systemic barriers, gaps, or learning (Gess-Newsome et al., 2003). treatment group and a comparison group); and challenges, including challenges using Darling-Hammond et al. (2017) includes at least one statistically significant and the identified technology-based tools or positive (i.e., favorable) effect on a relevant approaches in providing teacher in- indicated that effective professional outcome. See 34 CFR 77.1. development should have the following 3 Rural site is based on the National Center for service training; and features: (1) Be content focused, (2) Education Statistics (NCES) revised definitions of (vi) Describe the potential impact of incorporate active learning utilizing school locale types that can be found at https:// the identified technology-based tool or adult learning principles, (3) support nces.ed.gov/surveys/ruraled/definitions.asp. Rural approach on teacher in-service trainers, can be considered as ‘‘fringe, less than or equal to collaboration, (4) use models and 5 miles from an urbanized area, as well as rural teachers, families and children with modeling of effective practices, (5) territory that is less than or equal to 2.5 miles from disabilities. provide coaching and expert support, an urban cluster;’’ ‘‘distant, more than 5 miles but (b) Demonstrate, in the narrative (6) offer opportunities for feedback and less than or equal to 25 miles from an urbanized section of the application under area, as well as rural territory that is more than 2.5 reflection, and (7) be of sustained miles but less than or equal to 10 miles from an ‘‘Quality of project services,’’ how the duration. urban cluster;’’ or ‘‘remote, more than 25 miles from proposed project will— The Department therefore intends to an urbanized area and is also more than 10 miles (1) Ensure equal access and treatment fund three cooperative agreements to (a) from an urban cluster.’’ for members of groups that have 4 ‘‘Technology-based tool or approach’’ refers to identify strategies needed to implement the technology the applicant is proposing that has traditionally been underrepresented and integrate an existing technology- at least ‘‘promising evidence’’ with the population based on race, color, national origin, based tool or approach, based on at least intended. gender, age, or disability. To meet this

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requirement, the applicant must to have promising evidence, and (D) A site may not serve in more than describe how it will— addresses, at a minimum, the following one category (i.e., development, pilot, (i) Identify the needs of the intended principles of universal design for dissemination/scale-up). recipients for ongoing coaching and learning (UDL): (E) A minimum of three of the seven supports; (A) Multiple means of presentation so development and pilot sites must be in (ii) Identify potential strategies to that information can be delivered in settings other than traditional public provide recipients of the in-service more than one way (e.g., specialized elementary and secondary schools and training with the flexibility to software and websites, screen readers include at least one rural site. A personalize their own learning and that include features such as text-to- minimum of four of the 10 coaching supports; and speech, changeable color contrast, dissemination/scale-up sites must be in (iii) Ensure that products and alterable text size, or selection of settings other than traditional public resources meet the needs of the different reading levels). elementary and secondary schools and intended recipients of the grant; (B) Multiple means of expression that include at least one rural site. These (2) Achieve its goals, objectives, and allow knowledge to be exhibited non-traditional and rural sites must intended outcomes. To meet this through options such as writing, online otherwise meet the requirements of each requirement, the applicant must concept mapping, or speech-to-text category listed above. provide— programs, where appropriate. (ii) Provide information on the (i) Measurable intended project (C) Multiple means of engagement to development and pilot sites, including outcomes; and stimulate interest in and motivation for student demographics and other 5 learning (e.g., options among several (ii) In Appendix A, the logic model pertinent data (e.g., whether the settings different learning activities or content or conceptual framework by which the are schools identified for for a particular competency or skill and proposed project will achieve its comprehensive or targeted support and providing opportunities for increased intended outcomes that depicts, at a improvement in accordance with collaboration consistent with UDL minimum, the goals, activities, outputs, section 1111(c)(4)(C)(iii), (c)(4)(D), or principles). and intended outcomes of the proposed (d)(2)(C)–(D) of the ESEA); (5) Develop new products and project; (iii) Provide its plan for (3) Use a logic model or conceptual resources that are of high quality and sufficient intensity and duration to dissemination, which must address how framework (and provide a copy in the project will systematically distribute Appendix A) to develop project plans achieve the intended outcomes of the proposed project. To address this information, products, and services to and activities describing any underlying varied intended audiences, using a concepts, assumptions, expectations, requirement, the applicant must— (i) Provide a plan for recruiting and variety of dissemination strategies, to beliefs, or theories, as well as the promote awareness and use of the presumed relationships or linkages selecting a wide range of settings where children with disabilities are served, project’s products and resources that among these variables, and any goes beyond conference presentations empirical support for this framework; which must include the following: (A) Three development sites. and research articles; Note: The following websites provide (iv) Provide its plan for how the more information on logic models and Development sites are the sites in which iterative development of the products project will sustain project activities conceptual frameworks: after funding ends; and www.osepideasthatwork.org/logicModel and resources intended to support the implementation of technology tools will (v) Provide assurances that the final and www.osepideasthatwork.org/ products disseminated to help sites resources-grantees/program-areas/ta-ta/ occur. The project must start implementing the technology tool with effectively implement technology tools tad-project-logic-model-and-conceptual- will be both open educational resources framework. one development site in year one of the project period and two additional (OER) and licensed through an open (4) Be based on current research. To access licensing authority. meet this requirement, the applicant development sites in year two. (B) Four pilot sites. Pilot sites are the (c) In the narrative section of the must— application under ‘‘Quality of the (i) Describe how the proposed project sites in which try-out, formative project evaluation,’’ include an will align to current research, policies, evaluation, and refinement of the evaluation plan for the project as and practices related to the benefits, products and resources will occur. The described in the following paragraphs. services, or opportunities that are project must work with the four pilot The evaluation plan must describe available using the technology-based sites during years three and four of the measures of progress in implementation, tool or approach; project period. (C) Ten dissemination sites. including the criteria for determining (ii) Describe how the proposed project Dissemination/scale-up sites will be the extent to which the project’s will incorporate current research and selected if the project is extended for a products and resources have met the practices to guide the development and fifth year. Dissemination/scale-up sites goals for reaching the project’s target delivery of its products and resources, will be used to (1) refine the products population; measures of intended including accessibility and usability; for use by educators, and (2) evaluate outcomes or results of the project’s and the performance of the technology tool. activities in order to evaluate those (iii) Document that the technology Dissemination/scale-up sites will activities; and how well the goals or tool used by the project is fully receive less technical assistance (TA) objectives of the proposed project, as developed, has been tested and shown from the project than development and described in its logic model, have been met. The applicant must provide an 5 Logic model (also referred to as a theory of pilot sites. Also, dissemination/scale-up action) means a framework that identifies key sites will extend the benefits of the assurance that, in designing the project components of the proposed project (i.e., the technology tool to additional students. evaluation plan, it will— active ‘‘ingredients’’ that are hypothesized to be To be selected as a dissemination/scale- (1) Provide a logic model or critical to achieving the relevant outcomes) and conceptual framework that depicts, at a describes the theoretical and operational up site, eligible sites must commit to relationships among the key project components working with the project to implement minimum, the goals, activities, project and relevant outcomes. See 34 CFR 77.1. the technology tool. evaluation, methods, performance

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measures, outputs, and outcomes of the approach was implemented with (2) In the budget, attendance at the proposed project; fidelity; following: (2) Provide a plan to implement the (iii) Data on how the technology- (i) A one and one-half day kick-off activities described in this priority; based tool or approach changed in- meeting in Washington, DC, or virtually (3) Provide a plan, linked to the service trainers’ practices; and after receipt of the award, and an annual proposed project’s logic model or (iv) A plan for disseminating or planning meeting in Washington, DC, or conceptual framework, for a formative scaling up the technology-based tool or virtually, with the Office of Special evaluation of the proposed project’s approach and accompanying products Education Programs (OSEP) project activities. The plan must describe how beyond the sites directly involved in the officer and other relevant staff during the formative evaluation will use clear project. each subsequent year of the project performance objectives to ensure (d) Demonstrate, in the narrative period. continuous improvement in the section of the application under ‘‘Adequacy of resources and quality of Note: Within 30 days of receipt of the operation of the proposed project, award, a post-award teleconference must be including objective measures of progress project personnel,’’ how— held between the OSEP project officer and in implementing the project and (1) The proposed project will the grantee’s project director or other ensuring the quality of products and encourage applications for employment authorized representative. from persons who are members of resources; (ii) A two and one-half-day project (4) Describe a plan or method for groups that have traditionally been underrepresented based on race, color, directors’ conference in Washington, assessing— DC, or a virtual conference during each (i) The development and pilot sites’ national origin, gender, age, or disability, as appropriate; year of the project period. current teacher in-service training uses (iii) Two annual two-day trips to and needs, any current in-service (2) The proposed key project personnel, consultants, and attend Department briefings, technology investments, and the Department-sponsored conferences, and knowledge and availability of dedicated subcontractors have the qualifications and experience to carry out the other meetings, as requested by OSEP. on-site in-service training personnel; (iv) A one-day intensive OSEP review (ii) The readiness of development and proposed activities and achieve the project’s intended outcomes; meeting during the last half of the pilot sites to pilot or try-out the second year of the project period. technology-based teacher in-service (3) The applicant and any key training, including at a minimum, their partners have adequate resources to Cohort Collaboration and Support current infrastructure, available carry out the proposed activities; and (4) The proposed costs are reasonable OSEP project officer(s) will provide resources, and ability to build capacity; coordination support among the (iii) Whether the technology-based in relation to the anticipated results and benefits. projects. Each project funded under this tool or approach has achieved its (e) Demonstrate, in the narrative priority must— intended outcomes for teacher in- section of the application under (a) Participate in monthly conference- service trainers and PK–12 teachers; and ‘‘Quality of the management plan,’’ call discussions to share and collaborate (iv) Ongoing training needs of in- how— on implementation and project issues; service trainers to implement with (1) The proposed management plan and fidelity; will ensure that the project’s intended (b) Provide information annually (5) Collect formative and summative outcomes will be achieved on time and using a template that captures data from the in-service training to within budget. To address this descriptive data on project site selection refine and evaluate the products; requirement, the applicant must and the processes for installation and (6) If the project is extended to a fifth describe— use of the technology-based tool or year— (i) Clearly defined responsibilities for approach (i.e., the implementation (i) Provide the implementation key project personnel, consultants, and process). package of products and resources subcontractors, as applicable; and developed for the technology-based tool Note: The following website provides more (ii) Timelines and milestones for information about implementation research: or approach to no fewer than 10 accomplishing the project tasks; additional school sites, one of which https://nirn.fpg.unc.edu/national- (2) Key project personnel and any implementation-research-network. must be rural, in year five; and consultants and subcontractors will be (ii) Collect summative data about the allocated and how these allocations are Fifth Year of Project success of the project’s products and appropriate and adequate to achieve the resources in supporting implementation project’s intended outcomes; The Secretary may extend a project of the technology-based tool or (3) The proposed management plan one year beyond the initial 48 months approach in teacher in-service training will ensure that the products and to work with dissemination/scale-up sites; and resources provided are of high quality, sites if the grantee is achieving the (7) By the end of the project period, relevant, and useful to recipients; and intended outcomes of the project (as provide— (4) The proposed project will benefit demonstrated by data gathered as part of (i) Information on the products and from a diversity of perspectives, the project evaluation) and making a resources, as supported by the project including those of families, educators, positive contribution to the evaluation, including accessibility researchers, and policy makers, among implementation of a technology-based features, that will enable other sites to others, in its development and tool or approach based on at least implement and sustain implementation operation. promising evidence with fidelity in the of the technology-based tool or (f) Address the following application development and pilot sites. Each approach; requirements. The applicant must applicant must include in its (ii) Information in the Technology include— application a plan for the full 60-month Implementation Report, including data (1) In Appendix A, personnel-loading period. In deciding whether to continue on how in-service trainers used the charts and timelines, as applicable, to funding the project for the fifth year, the technology-based tool or approach, and illustrate the management plan Secretary will consider the requirements how the technology-based tool or described in the narrative; and of 34 CFR 75.253(a), and will consider—

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(a) The recommendation of a review Note: The regulations in 34 CFR part 79 together with a statement by the State or team consisting of the OSEP project apply to all applicants except federally parent organization that the applicant is a officer and other experts selected by the recognized Indian Tribes. local nonprofit affiliate. Secretary. This review will be held Note: The regulations in 34 CFR part 86 2. a. Cost Sharing or Matching: This during the last half of the second year apply to institutions of higher education program does not require cost sharing or of the project period; (IHEs) only. matching. (b) The success and timeliness with b. Indirect Cost Rate Information: This which the requirements of the II. Award Information program uses an unrestricted indirect negotiated cooperative agreement have cost rate. For more information been or are being met by the project; and Type of Award: Cooperative regarding indirect costs, or to obtain a (c) The degree to which the project’s agreements. negotiated indirect cost rate, please see activities have changed practices and Estimated Available Funds: The www2.ed.gov/about/offices/list/ocfo/ improved outcomes for PK–12 children Administration has requested intro.html. with disabilities. $29,547,000 for the Educational c. Administrative Cost Limitation: Technology, Media, and Materials for This program does not include any References Individuals with Disabilities program program-specific limitation on Darling-Hammond, L., Hyler, M. E., & for FY 2021, of which we intend to use administrative expenses. All Gardner, M. (2017). Effective Teacher an estimated $1,500,000 for this administrative expenses must be Professional Development. Learning competition. The actual level of reasonable and necessary and conform Policy Institute. https:// funding, if any, depends on final learningpolicyinstitute.org/product/ to Cost Principles described in 2 CFR congressional action. However, we are part 200 subpart E of the Uniform teacher-prof-dev. inviting applications to allow enough Gess-Newsome, J., Blocher, J. M., Clark, J., Guidance. Menasco, J., & Willis, E. M. (2003). time to complete the grant process if 3. Subgrantees: A grantee under this Technology infused professional Congress appropriates funds for this competition may not award subgrants to development: A framework for program. entities to directly carry out project development and analysis. Contingent upon the availability of activities described in its application. Contemporary Issues in Technology and funds and the quality of applications, Under 34 CFR 75.708(e), a grantee may Teacher Education, 3(3). https:// we may make additional awards in FY contract for supplies, equipment, and citejournal.org/volume-3/issue-3-03/ 2022 from the list of unfunded general/technology-infused-professional- other services in accordance with 2 CFR development-a-framework-for- applications from this competition. part 200. development-and-analysis. Estimated Range of Awards: $450,000 4. Other General Requirements: (a) McAleavy, T., Hall-Chen, A., Horrocks, S., & to $500,000 per year. Recipients of funding under this Riggall, A. (2018). Technology-supported Estimated Average Size of Awards: competition must make positive efforts professional development for teachers: $475,000 per year. to employ and advance in employment Lessons from developing countries. Maximum Award: We will not make qualified individuals with disabilities Education Development Trust. https:// an award exceeding $2,500,000 for the eric.ed.gov/?id=ED593386. (see section 606 of IDEA). 60-month project period. (b) Each applicant for, and recipient Waiver of Proposed Rulemaking: Estimated Number of Awards: 3. of, funding must, with respect to the Under the Administrative Procedure Act Note: The Department is not bound by any aspects of their proposed project (APA) (5 U.S.C. 553) the Department estimates in this notice. relating to the absolute priority, involve generally offers interested parties the Project Period: Up to 60 months. individuals with disabilities, or parents opportunity to comment on proposed of individuals with disabilities ages priorities. Section 681(d) of IDEA, III. Eligibility Information birth through 26, in planning, however, makes the public comment 1. Eligible Applicants: SEAs; LEAs, implementing, and evaluating the requirements of the APA inapplicable to including public charter schools that project (see section 682(a)(1)(A) of the priority in this notice. IDEA). Program Authority: 20 U.S.C. 1474 operate as LEAs under State law; IHEs; and 1481. other public agencies; private nonprofit IV. Application and Submission organizations; freely associated States Information Note: Projects must be awarded and and outlying areas; Indian Tribes or operated in a manner consistent with the Tribal organizations; and for-profit 1. Application Submission nondiscrimination requirements contained in organizations. Instructions: Applicants are required to the U.S. Constitution and the Federal civil follow the Common Instructions for rights laws. Note: If you are a nonprofit organization, Applicants to Department of Education Applicable Regulations: (a) The under 34 CFR 75.51, you may demonstrate Discretionary Grant Programs, Education Department General your nonprofit status by providing: (1) Proof that the Internal Revenue Service currently published in the Federal Register on Administrative Regulations in 34 CFR recognizes the applicant as an organization to February 13, 2019 (84 FR 3768), and parts 75, 77, 79, 81, 82, 84, 86, 97, 98, which contributions are tax deductible under available at www.govinfo.gov/content/ and 99. (b) The Office of Management section 501(c)(3) of the Internal Revenue pkg/FR-2019-02-13/pdf/2019-02206.pdf, and Budget Guidelines to Agencies on Code; (2) a statement from a State taxing which contain requirements and Governmentwide Debarment and body or the State attorney general certifying information on how to submit an Suspension (Nonprocurement) in 2 CFR that the organization is a nonprofit application. part 180, as adopted and amended as organization operating within the State and 2. Intergovernmental Review: This regulations of the Department in 2 CFR that no part of its net earnings may lawfully competition is subject to Executive part 3485. (c) The Uniform benefit any private shareholder or individual; Order 12372 and the regulations in 34 (3) a certified copy of the applicant’s Administrative Requirements, Cost certificate of incorporation or similar CFR part 79. Information about Principles, and Audit Requirements for document if it clearly establishes the Intergovernmental Review of Federal Federal Awards in 2 CFR part 200, as nonprofit status of the applicant; or (4) any Programs under Executive Order 12372 adopted and amended as regulations of item described above if that item applies to is in the application package for this the Department in 2 CFR part 3474. a State or national parent organization, competition.

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3. Funding Restrictions: We reference including, as appropriate, the potential feedback and permit periodic regulations outlining funding for implementation in a variety of assessment of progress toward achieving restrictions in the Applicable settings. intended outcomes; and Regulations section of this notice. (b) Quality of project services (30 (v) The extent to which the evaluation 4. Recommended Page Limit: The points). plan clearly articulates the key project application narrative is where you, the (1) The Secretary considers the components, mediators, and outcomes, applicant, address the selection criteria quality of the services to be provided by as well as a measurable threshold for that reviewers use to evaluate your the proposed project. acceptable implementation. application. We recommend that you (1) (2) In determining the quality of the (d) Adequacy of resources and quality limit the application narrative to no services to be provided by the proposed of project personnel (20 points). more than 50 pages and (2) use the project, the Secretary considers the (1) The Secretary considers the following standards: quality and sufficiency of strategies for adequacy of resources for the proposed • A ‘‘page’’ is 8.5″ x 11″, on one side ensuring equal access and treatment for project and the quality of the personnel only, with 1″ margins at the top, bottom, eligible project participants who are who will carry out the proposed project. and both sides. members of groups that have (2) In determining the quality of • Double-space (no more than three traditionally been underrepresented project personnel, the Secretary lines per vertical inch) all text in the based on race, color, national origin, considers the extent to which the application narrative, including titles, gender, age, or disability. applicant encourages applications for headings, footnotes, quotations, (3) In addition, the Secretary employment from persons who are reference citations, and captions, as well considers the following factors: members of groups that have as all text in charts, tables, figures, (i) The extent to which the services to traditionally been underrepresented graphs, and screen shots. be provided by the proposed project based on race, color, national origin, • Use a font that is 12 point or larger. reflect up-to-date knowledge from gender, age, or disability. • Use one of the following fonts: research and effective practice; (3) In addition, the Secretary Times New Roman, Courier, Courier (ii) The extent to which the training considers the following factors: New, or Arial. or professional development services to (i) The qualifications, including The recommended page limit does not be provided by the proposed project are relevant training and experience, of the apply to the cover sheet; the budget of sufficient quality, intensity, and project director or principal section, including the narrative budget duration to lead to improvements in investigator; (ii) The qualifications, including justification; the assurances and practice among the recipients of those relevant training and experience, of key certifications; or the abstract (follow the services; (iii) The extent to which the services project personnel; guidance provided in the application to be provided by the proposed project (iii) The qualifications, including package for completing the abstract), the involve the collaboration of appropriate relevant training and experience, of table of contents, the list of priority partners for maximizing the project consultants or subcontractors; requirements, the resumes, the reference effectiveness of project services; (iv) The adequacy of support, list, the letters of support, or the (iv) The extent to which the services including facilities, equipment, appendices. However, the to be provided by the proposed project supplies, and other resources, from the recommended page limit does apply to are appropriate to the needs of the applicant organization or the lead all of the application narrative, intended recipients or beneficiaries of applicant organization; including all text in charts, tables, those services; and (v) The relevance and demonstrated figures, graphs, and screen shots. (v) The likely impact of the services commitment of each partner in the V. Application Review Information to be provided by the proposed project proposed project to the implementation on the intended recipients of those and success of the project; and 1. Selection Criteria: The selection services. (vi) The extent to which the costs are criteria for this competition are from 34 (c) Quality of the project evaluation reasonable in relation to the objectives, CFR 75.210 and are as follows: (20 points). design, and potential significance of the (a) Significance (15 points). (1) The Secretary considers the proposed project. (1) The Secretary considers the quality of the evaluation to be (e) Quality of the management plan significance of the proposed project. conducted of the proposed project. (15 points). (2) In determining the significance of (2) In determining the quality of the (1) The Secretary considers the the proposed project, the Secretary evaluation, the Secretary considers the quality of the management plan for the considers the following factors: following factors: proposed project. (i) The significance of the problem or (i) The extent to which the methods (2) In determining the quality of the issue to be addressed by the proposed of evaluation are thorough, feasible, and management plan for the proposed project; appropriate to the goals, objectives, and project, the Secretary considers the (ii) The extent to which specific gaps outcomes of the proposed project; following factors: or weaknesses in services, (ii) The extent to which the methods (i) The adequacy of the management infrastructure, or opportunities have of evaluation include the use of plan to achieve the objectives of the been identified and will be addressed by objective performance measures that are proposed project on time and within the proposed project, including the clearly related to the intended outcomes budget, including clearly defined nature and magnitude of those gaps or of the project and will produce responsibilities, timelines, and weaknesses; quantitative and qualitative data to the milestones for accomplishing project (iii) The potential contribution of the extent possible; tasks; proposed project to increased (iii) The extent to which the methods (ii) The extent to which the time knowledge or understanding of of evaluation provide for examining the commitments of the project director and educational problems, issues, or effectiveness of project implementation principal investigator and other key effective strategies; and strategies; project personnel are appropriate and (iv) The potential replicability of the (iv) The extent to which the methods adequate to meet the objectives of the proposed project or strategies, of evaluation will provide performance proposed project;

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(iii) The adequacy of mechanisms for 4. Risk Assessment and Specific requirements in the Applicable ensuring high-quality products and Conditions: Consistent with 2 CFR Regulations section of this notice. services from the proposed project; 200.205, before awarding grants under We reference the regulations outlining (iv) How the applicant will ensure this competition, the Department the terms and conditions of an award in that a diversity of perspectives are conducts a review of the risks posed by the Applicable Regulations section of brought to bear in the operation of the applicants. Under 2 CFR 3474.10, the this notice and include these and other proposed project, including those of Secretary may impose specific specific conditions in the GAN. The parents, teachers, the business conditions and, in appropriate GAN also incorporates your approved community, a variety of disciplinary circumstances, high-risk conditions on a application as part of your binding and professional fields, recipients or grant if the applicant or grantee is not commitments under the grant. beneficiaries of services, or others, as financially stable; has a history of 3. Open Licensing Requirements: appropriate; and unsatisfactory performance; has a Unless an exception applies, if you are (v) The adequacy of procedures for financial or other management system awarded a grant under this competition, ensuring feedback and continuous that does not meet the standards in 2 you will be required to openly license improvement in the operation of the CFR part 200, subpart D; has not to the public grant deliverables created proposed project. fulfilled the conditions of a prior grant; in whole, or in part, with Department 2. Review and Selection Process: We or is otherwise not responsible. grant funds. When the deliverable remind potential applicants that in 5. Integrity and Performance System: consists of modifications to pre-existing reviewing applications in any If you are selected under this works, the license extends only to those modifications that can be separately discretionary grant competition, the competition to receive an award that identified and only to the extent that Secretary may consider, under 34 CFR over the course of the project period open licensing is permitted under the 75.217(d)(3), the past performance of the may exceed the simplified acquisition terms of any licenses or other legal applicant in carrying out a previous threshold (currently $250,000), under 2 restrictions on the use of pre-existing award, such as the applicant’s use of CFR 200.205(a)(2) we must make a works. Additionally, a grantee that is funds, achievement of project judgment about your integrity, business awarded competitive grant funds must objectives, and compliance with grant ethics, and record of performance under Federal awards—that is, the risk posed have a plan to disseminate these public conditions. The Secretary may also by you as an applicant—before we make grant deliverables. This dissemination consider whether the applicant failed to an award. In doing so, we must consider plan can be developed and submitted submit a timely performance report or any information about you that is in the after your application has been submitted a report of unacceptable integrity and performance system reviewed and selected for funding. For quality. (currently referred to as the Federal additional information on the open In addition, in making a competitive Awardee Performance and Integrity licensing requirements please refer to 2 grant award, the Secretary requires Information System (FAPIIS)), CFR 3474.20. various assurances, including those accessible through the System for 4. Reporting: (a) If you apply for a applicable to Federal civil rights laws Award Management. You may review grant under this competition, you must that prohibit discrimination in programs and comment on any information about ensure that you have in place the or activities receiving Federal financial yourself that a Federal agency necessary processes and systems to assistance from the Department (34 CFR previously entered and that is currently comply with the reporting requirements 100.4, 104.5, 106.4, 108.8, and 110.23). in FAPIIS. in 2 CFR part 170 should you receive 3. Additional Review and Selection Please note that, if the total value of funding under the competition. This Process Factors: In the past, the your currently active grants, cooperative does not apply if you have an exception Department has had difficulty finding agreements, and procurement contracts under 2 CFR 170.110(b). peer reviewers for certain competitions from the Federal Government exceeds (b) At the end of your project period, because so many individuals who are $10,000,000, the reporting requirements you must submit a final performance eligible to serve as peer reviewers have in 2 CFR part 200, Appendix XII, report, including financial information, conflicts of interest. The standing panel require you to report certain integrity as directed by the Secretary. If you requirements under section 682(b) of information to FAPIIS semiannually. receive a multiyear award, you must IDEA also have placed additional Please review the requirements in 2 CFR submit an annual performance report constraints on the availability of part 200, Appendix XII, if this grant that provides the most current reviewers. Therefore, the Department plus all the other Federal funds you performance and financial expenditure has determined that for some receive exceed $10,000,000. information as directed by the Secretary discretionary grant competitions, under 34 CFR 75.118. The Secretary applications may be separated into two VI. Award Administration Information may also require more frequent or more groups and ranked and selected 1. Award Notices: If your application performance reports under 34 CFR for funding within specific groups. This is successful, we notify your U.S. 75.720(c). For specific requirements on procedure will make it easier for the Representative and U.S. Senators and reporting, please go to www.ed.gov/ Department to find peer reviewers by send you a Grant Award Notification fund/grant/apply/appforms/ ensuring that greater numbers of (GAN); or we may send you an email appforms.html. individuals who are eligible to serve as containing a link to access an electronic (c) Under 34 CFR 75.250(b), the reviewers for any particular group of version of your GAN. We may notify Secretary may provide a grantee with applicants will not have conflicts of you informally, also. additional funding for data collection interest. It also will increase the quality, If your application is not evaluated or analysis and reporting. In this case the independence, and fairness of the not selected for funding, we notify you. Secretary establishes a data collection review process, while permitting panel 2. Administrative and National Policy period. members to review applications under Requirements: We identify 5. Performance Measures: Under the discretionary grant competitions for administrative and national policy Government Performance and Results which they also have submitted requirements in the application package Act of 1993 (GPRA), the Department has applications. and reference these and other established a set of performance

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measures, including long-term application, including those applicable SUMMARY: In accordance with the measures, that are designed to yield to Federal civil rights laws that prohibit Paperwork Reduction Act of 1995, ED is information on various aspects such as discrimination in programs or activities seeking public comment on proposed evaluating whether project goals and receiving Federal financial assistance changes to a currently existing target outcomes are met and quality of from the Department (34 CFR 100.4, information collection. the Educational Technology, Media, and 104.5, 106.4, 108.8, and 110.23). DATES: Interested persons are invited to Materials (ETechM2) for Individuals VII. Other Information submit comments on or before January with Disabilities Program. These 21, 2021. Accessible Format: On request to the measures are: ADDRESSES: Written comments and • Program Performance Measure 1: program contact person listed under FOR recommendations for proposed The percentage of ETechM2 Program FURTHER INFORMATION CONTACT, information collection requests should products and services judged to be of individuals with disabilities can obtain be sent within 30 days of publication of high quality by an independent review this document and a copy of the this notice to www.reginfo.gov/public/ panel of experts qualified to review the application package in an accessible do/PRAMain. Find this particular substantial content of the products and format. The Department will provide the information request by selecting services. requestor with an accessible format that • ‘‘Department of Education’’ under Program Performance Measure 2: may include Rich Text Format (RTF) or ‘‘Currently Under Review,’’ then check The percentage of ETechM2 Program text format (txt), a thumb drive, an MP3 ‘‘Only Show ICR for Public Comment’’ products and services judged to be of file, braille, large print, audiotape, or checkbox. high relevance to improving outcomes compact disc, or other accessible format. FOR FURTHER INFORMATION CONTACT: For for infants, toddlers, children, and Electronic Access to This Document: specific questions related to collection youth with disabilities. The official version of this document is • Program Performance Measure 3: the document published in the Federal activities, please contact Carrie Clarady, The percentage of ETechM2 Program Register. You may access the official 202–245–6347. products and services judged to be edition of the Federal Register and the SUPPLEMENTARY INFORMATION: The useful in improving results for infants, Code of Federal Regulations at Department of Education (ED), in toddlers, children, and youth with www.govinfo.gov. At this site you can accordance with the Paperwork disabilities. view this document, as well as all other Reduction Act of 1995 (PRA) (44 U.S.C. • Program Performance Measure 4.1: documents of this Department 3506(c)(2)(A)), provides the general The Federal cost per unit of accessible published in the Federal Register, in public and Federal agencies with an educational materials funded by the text or Portable Document Format opportunity to comment on proposed, ETechM2 Program. (PDF). To use PDF you must have revised, and continuing collections of • Program Performance Measure 4.2: Adobe Acrobat Reader, which is information. This helps the Department The Federal cost per unit of accessible available free at the site. assess the impact of its information educational materials from the National You may also access documents of the collection requirements and minimize Instructional Materials Accessibility Department published in the Federal the public’s reporting burden. It also Center funded by the ETechM2 Register by using the article search helps the public understand the Program. feature at www.federalregister.gov. Department’s information collection • Program Performance Measure 4.3: Specifically, through the advanced requirements and provide the requested The Federal cost per unit of video search feature at this site, you can limit data in the desired format. ED is description funded by the ETechM2 your search to documents published by soliciting comments on the proposed Program. the Department. information collection request (ICR) These measures apply to projects changes that are described below. The funded under this competition, and Mark Schultz, Department of Education is especially grantees are required to submit data on Commissioner, Rehabilitation Services interested in public comment these measures as directed by OSEP. Administration. Delegated the authority to addressing the following issues: (1) Is Grantees will be required to report perform the functions and duties of the this collection necessary to the proper information on their project’s Assistant Secretary for the Office of Special Education and Rehabilitative Services. functions of the Department; (2) will performance in annual performance this information be processed and used [FR Doc. 2020–28345 Filed 12–18–20; 4:15 pm] reports and additional performance data in a timely manner; (3) is the estimate to the Department (34 CFR 75.590 and BILLING CODE 4000–01–P of burden accurate; (4) how might the 75.591). Department enhance the quality, utility, 6. Continuation Awards: In making a DEPARTMENT OF EDUCATION and clarity of the information to be continuation award under 34 CFR collected; and (5) how might the 75.253, the Secretary considers, among [Docket No. ED–2020–SCC–0196] Department minimize the burden of this other things: Whether a grantee has collection on the respondents, including made substantial progress in achieving Agency Information Collection through the use of information the goals and objectives of the project; Activities; Submission to the Office of technology. Please note that written whether the grantee has expended funds Management and Budget for Review comments received in response to this in a manner that is consistent with its and Approval; Comment Request; notice will be considered public approved application and budget; and, National Public Education Financial records. if the Secretary has established Survey (NPEFS) 2019–2021: Common Title of Collection: National Public performance measurement Core of Data (CCD) Education Financial Survey (NPEFS) requirements, the performance targets in AGENCY: National Center for Education 2019–2021: Common Core of Data the grantee’s approved application. Statistics (NCES), Institute of Education (CCD). In making a continuation award, the Sciences (IES), Department of Education OMB Control Number: 1850–0067. Secretary also considers whether the (ED). Type of Review: A change to a grantee is operating in compliance with currently existing information ACTION: Notice. the assurances in its approved collection.

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Respondents/Affected Public: State, the National Center for Education Purpose of the Board: The purpose of Local, and Tribal Governments. Statistics (NCES) is requesting to: the Board is to make recommendations Total Estimated Number of Annual 1. Amend the instructions for Average to DOE–EM and site management in the Responses: 56. Daily Attendance (ADA) on NPEFS; areas of environmental restoration, Total Estimated Number of Annual 2. Obtain approval to send a letter to waste management, and related Burden Hours: 6,738. Chief State School Officers (CSSOs) and activities. Abstract: The National Public State Fiscal Coordinators pertaining to Education Financial Survey (NPEFS) is ADA; Tentative Agenda the Nation’s only source of annual 3. Amend the data plan for NPEFS; • Call to Order statistical information about total 4. Add certain data items to NPEFS; • Welcome and Introductions revenues and expenditures for public 5. Make other small changes to FY 20 • Roll Call elementary and secondary education at NPEFS, based on regular • the state level. NCES collects data Overview and Approval of Agenda communication with state fiscal • annually from SEAs under Section coordinators; and Approval of November 18, 2020 153(a)(1)(I) of the Education Sciences 6. Change the estimated respondent Minutes • Reform Act of 2002, 20 U.S.C. burden and the costs to the federal Old Business 9543(a)(1)(I), which authorizes NCES to government incurred by the above Æ Report from NNMCAB Chair and Vice gather data on the financing and changes. Chair management of education. NCES and Æ Dated: December 17, 2020. Report from Committee Chairs the Economic Reimbursable Surveys Æ Stephanie Valentine, Consideration and Action on Draft Division of the U.S. Census Bureau Recommendation 2020–03: Need for PRA Coordinator, Strategic Collections and collaborate to collect public education Native America, Hispanic, and Other finance data. The U.S. Census Bureau Clearance, Governance and Strategy Division, Office of Chief Data Officer, Office of Traditional Lifestyle Special (Census), Governments Division, Planning, Evaluation and Policy Pathways Exposure Scenario for EM administers the NPEFS data collection Development. Los Alamos Field Office Campaigns for NCES under interagency agreement. [tabled during November 18, 2020 NPEFS provides detailed finance data [FR Doc. 2020–28257 Filed 12–21–20; 8:45 am] BILLING CODE 4000–01–P meeting] at the state level, including average Æ Other Items daily attendance; school district • New Business revenues by source (local, state, and • federal); and expenditures by function DEPARTMENT OF ENERGY Presentation on Legacy Transition (instruction, support services, and non- Materials Project Environmental Management Site- • instruction), sub function (e.g., school Update from EM Los Alamos Field Specific Advisory Board, Northern New administration), and object (e.g., Office Mexico salaries). This survey also includes • Update from NNMCAB Deputy capital outlay and debt service AGENCY: Office of Environmental Designated Federal Officer • expenditures. The NPEFS includes data Management, Department of Energy. Update from N3B • on all public schools from the 50 states, ACTION: Notice of open virtual meeting. Update from New Mexico the District of Columbia, American Environment Department Samoa, the Northern Mariana Islands, SUMMARY: This notice announces an • Presentation on N3B Labor Force Guam, Puerto Rico, and the Virgin online virtual meeting of the Demographics Islands. NPEFS serves as both a Environmental Management Site- • Public Comment Period statistical and an administrative Specific Advisory Board (EM SSAB), • February 2021 Meeting Schedule and collection used for a number of federal Northern New Mexico. The Federal Presentation Requests program funding allocations. Advisory Committee Act requires that • Wrap-Up and Comments from In 2019, NCES requested an extension public notice of this conference call be NNMCAB Members of approval for the NPEFS data announced in the Federal Register. • Adjourn collection, OMB Control Number 1850– DATES: Wednesday, January 13, 2021; 0067. NPEFS is an annual collection of 1:00 p.m.–4:45 p.m. Public Participation: The online state-level finance data that have been a virtual meeting is open to the public. ADDRESSES: This meeting will be held component of NCES’s Common Core of Written statements may be filed with virtually via Webex. To attend, please the Board either before or within five Data (CCD) since FY 1982 (covering contact Menice Santistevan by email, school year 1981/82). On August 22, days after the meeting by sending them [email protected], no to Menice Santistevan at the 2019, the Office of Management and later than 5:00 p.m. MST on Monday, Budget (OMB) approved the collection aforementioned email address. The January 11, 2021. Deputy Designated Federal Officer is of state-level finance data for the data To Sign Up For Public Comment: collections of FY 19–FY 21 data. The empowered to conduct the conference Please contact Menice Santistevan by call in a fashion that will facilitate the expiration date is August 31, 2022. The email, [email protected], statistical uses of NPEFS were orderly conduct of business. Individuals no later than 5:00 p.m. MST on Monday, wishing to make public comments will previously set forth in National Public January 11, 2021. Education Financial Survey (NPEFS) be provided a maximum of five minutes FOR FURTHER INFORMATION CONTACT: 2019–2021: Common Core of Data to present their comments. (CCD), Supporting Statement Part A, Menice Santistevan, Northern New Minutes: Minutes will be available by OMB# 1850–0067 v.17. Mexico Citizens’ Advisory Board writing or calling Menice Santistevan at This submission for 30-day public (NNMCAB), 94 Cities of Gold Road, the address or telephone number listed review requests changes to the National Santa Fe, NM 87506. Phone (505) 995– above. Minutes and other Board Public Education Financial Survey 0393 or Email: Menice.Santistevan@ documents are on the internet at: (NPEFS) data collection. As a direct em.doe.gov. https://www.energy.gov/em/nnmcab/ result of the COVID–19 circumstances, SUPPLEMENTARY INFORMATION: meeting-materials.

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Signed in Washington, DC, on December 1855 on May 1, 2017. In the license generation is approximately 239,070 17, 2020. application, Great River Hydro stated MW-hours. Great River Hydro is LaTanya Butler, that it could not develop a complete proposing changes to project operation Deputy Committee Management Officer. licensing proposal for the project since that would reduce impoundment [FR Doc. 2020–28203 Filed 12–21–20; 8:45 am] many of the required environmental fluctuations and increase the stability of BILLING CODE 6450–01–P studies were not complete as of May 1, downstream flow releases relative to 2017. Great River Hydro indicated that current project operation, including it would amend the license application targeted water surface elevation levels DEPARTMENT OF ENERGY after completing additional field work, and flow ramping rates. Great River consultation, and analyses on the Hydro proposes several protection, Federal Energy Regulatory required studies. Great River Hydro mitigation, and enhancement measures Commission filed material amendments to the final for aquatic, terrestrial, cultural, and [Project No. 1855–050] license application on December 7, recreation resources, and threatened and 2020. endangered species. The specific Great River Hydro, LLC; Notice l. Project Description: The existing proposed changes are described in the Establishing Procedural Schedule for Bellows Falls Project consists of: (1) A amended application. Licensing and Deadline for 643-foot-long, 30-foot-high concrete m. In addition to publishing the full Submission of Final Amendments dam that includes: (a) Two 18-foot-high, text of this notice in the Federal 115-foot-wide steel roller gates; (b) two Register, the Commission provides all Take notice that the following 13-foot-high, 121-foot-wide stanchion interested persons an opportunity to amended hydroelectric application has flashboards; and (c) a 13-foot-high, 100- view and/or print the contents of this been filed with the Commission and is foot-wide stanchion flashboard; (2) a 26- notice, as well as other documents in available for public inspection. mile-long, 2,804-acre impoundment the proceeding (e.g., license application) a. Type of Application: New Major with a useable storage volume of 7,467 via the internet through the License. Commission’s Home Page (http:// b. Project No.: 1855–050. acre-feet between elevations 288.63 and c. Date Material Amendments Filed: 291.63 feet National Geodetic Vertical www.ferc.gov) using the eLibrary link. December 7, 2020. Datum of 1929 (NGVD 29); (3) a 1,700- Enter the docket number excluding the d. Applicant: Great River Hydro, LLC foot-long, 36- to 100-foot-wide, 29-foot- last three digits in the docket number (Great River Hydro). deep stone-lined power canal; (4) a field to access the document (P–1855). e. Name of Project: Bellows Falls 130.25-foot-wide concrete forebay that At this time, the Commission has Hydroelectric Project. includes trashracks with 4-inch clear suspended access to the Commission’s f. Location: The existing project is bar spacing; (5) a 186-foot-long, 106- Public Reference Room due to the located on the Connecticut River in foot-wide, 52-foot-high steel frame, proclamation declaring a National Windsor and Windham Counties, brick powerhouse containing three 13.6- Emergency concerning the Novel Vermont, and Sullivan and Cheshire megawatt (MW) vertical Francis turbine- Coronavirus Disease (COVID–19) issued Counties, New Hampshire. There are no generator units, for a total project by the President on March 13, 2020. For federal lands within the project capacity of 40.8 MW; (6) three assistance, contact FERC at boundary. approximately 20-foot-high, 31-foot- [email protected] or call g. Filed Pursuant to: Federal Power wide concrete draft tubes; (7) a 900-foot- toll-free, (866) 208–3676 or (202) 502– Act, 16 U.S.C. 791(a)–825(r). long tailrace; (8) a 12-foot-wide, 10-foot- 8659 (TTY). h. Applicant Contact: John Ragonese, high ice sluice; (9) three 80-foot-long, n. You may also register online at FERC License Manager, Great River 6.6-kilovolt generator leads that connect https://ferconline.ferc.gov/ Hydro, LLC, 40 Pleasant Street, Suite the turbine-generator units to two step- FERCOnline.aspx to be notified via 202, Portsmouth, NH 03801; (603) 498– up transformers; (10) a 920-foot-long, 8- email of new filings and issuances 2851 or [email protected]. foot-wide fishway; (11) a concrete fish related to this or other pending projects. i. FERC Contact: Steve Kartalia, (202) barrier dam in the bypassed reach; and For assistance, contact FERC Online 502–6131 or [email protected]. (12) appurtenant facilities. Support. j. This application is not ready for Great River Hydro operates the project o. Procedural Schedule: The environmental analysis at this time. in coordination with its upstream application will be processed according k. Great River Hydro filed an Wilder Project No. 1892 and to the following preliminary Hydro application for a new license for the downstream Vernon Project No. 1904 Licensing Schedule. Revisions to the Bellows Falls Hydroelectric Project No. and in a peaking mode. Average annual schedule may be made as appropriate.

Milestone Target date

Commission issues letter identifying application deficiencies and requesting additional information ...... January 2021. Notice of Acceptance/Notice of Ready for Environmental Analysis ...... May 2021. Filing of recommendations, preliminary terms and conditions, and fishway prescriptions ...... July 2021. Reply Comments due ...... August 2021.

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p. Final amendments to the delivered to Health and Human 266,500 Dth/d.1 The Project is designed application must be filed with the Services, 12225 Wilkins Avenue, to increase the discharge pressure at the Commission no later than 30 days from Rockville, Maryland 20852. Marcus Hook Compressor Station to the issuance date of the notice of ready In addition to publishing the full text provide firm service to a new shipper for environmental analysis. of this document in the Federal that will transport gas on Adelphia’s Dated: December 16, 2020. Register, the Commission provides all system to the interconnection with Columbia Gas. Adelphia proposes to Kimberly D. Bose, interested persons an opportunity to view and/or print the contents of this install these facilities under authorities Secretary. document via the internet through the granted by its blanket certificate issued [FR Doc. 2020–28237 Filed 12–21–20; 8:45 am] Commission’s Home Page (http:// in Docket No. CP18–46–000, et al.2 BILLING CODE 6717–01–P ferc.gov) using the ‘‘eLibrary’’ link. Adelphia estimates the cost of the Enter the docket number excluding the project to be approximately $4.6 last three digits in the docket number million, all as more fully set forth in the DEPARTMENT OF ENERGY field to access the document. At this request which is on file with the Federal Energy Regulatory time, the Commission has suspended Commission and open to public Commission access to the Commission’s Public inspection. Reference Room, due to the In addition to publishing the full text [Docket No. ER21–654–000] proclamation declaring a National of this document in the Federal Emergency concerning the Novel Register, the Commission provides all PGR Lessee O, LLC; Supplemental Coronavirus Disease (COVID–19), issued interested persons an opportunity to Notice That Initial Market-Based Rate by the President on March 13, 2020. For view and/or print the contents of this Filing Includes Request for Blanket assistance, contact the Federal Energy document via the internet through the Section 204 Authorization Regulatory Commission at FERCOnline Commission’s Home Page (http:// ferc.gov) using the ‘‘eLibrary’’ link. This is a supplemental notice in the [email protected] or call toll-free, (886) Enter the docket number excluding the above-referenced proceeding of PGR 208–3676 or TYY, (202) 502–8659. last three digits in the docket number Lessee O, LLC’s application for market- Dated: December 16, 2020. field to access the document. At this based rate authority, with an Kimberly D. Bose, time, the Commission has suspended accompanying rate tariff, noting that Secretary. access to the Commission’s Public such application includes a request for [FR Doc. 2020–28239 Filed 12–21–20; 8:45 am] Reference Room, due to the blanket authorization, under 18 CFR BILLING CODE 6717–01–P proclamation declaring a National part 34, of future issuances of securities Emergency concerning the Novel and assumptions of liability. Coronavirus Disease (COVID–19), issued Any person desiring to intervene or to DEPARTMENT OF ENERGY by the President on March 13, 2020. For protest should file with the Federal assistance, contact the Federal Energy Energy Regulatory Commission, 888 Federal Energy Regulatory Regulatory Commission at First Street NE, Washington, DC 20426, Commission [email protected] or call in accordance with Rules 211 and 214 [Docket No. CP21–14–000] toll-free, (886) 208–3676 or TYY, (202) of the Commission’s Rules of Practice 502–8659. and Procedure (18 CFR 385.211 and Adelphia Gateway, LLC; Notice of Any questions concerning this 385.214). Anyone filing a motion to Request Under Blanket Authorization application should be directed to Ginger intervene or protest must serve a copy and Establishing Intervention and P. Richman, President, Adelphia of that document on the Applicant. Protest Deadline Gateway, LLC, (732) 938–1268, Notice is hereby given that the [email protected], 1415 deadline for filing protests with regard Take notice that on December 7, 2020, Wyckoff Road, Wall, NJ 07719. to the applicant’s request for blanket Adelphia Gateway, LLC (Adelphia), authorization, under 18 CFR part 34, of 1415 Wyckoff Road, Wall, New Jersey, Public Participation future issuances of securities and 07719, filed in the above referenced There are three ways to become assumptions of liability, is January 5, docket a prior notice pursuant to involved in the Commission’s review of 2021. Section 157.210 and 157.216 of the this project: You can file a protest to the The Commission encourages Federal Energy Regulatory project, you can file a motion to electronic submission of protests and Commission’s regulations under the intervene in the proceeding, and you interventions in lieu of paper, using the Natural Gas Act, seeking authorization can file comments on the project. There FERC Online links at http:// to install and operate one new electric is no fee or cost for filing protests, www.ferc.gov. To facilitate electronic motor-driven 3,000 hp reciprocating motions to intervene, or comments. The service, persons with internet access compressor unit at its Marcus Hook deadline for filing protests, motions to who will eFile a document and/or be Compressor Station in Delaware County, intervene, and comments is 5:00 p.m. listed as a contact for an intervenor Pennsylvania including related Eastern Time on February 16, 2021. must create and validate an equipment such as one horizontal How to file protests, motions to eRegistration account using the process gas cooler, two variable intervene, and comments is explained eRegistration link. Select the eFiling frequency drives, one motor control below. link to log on and submit the center assembly and instrumentation Protests intervention or protests. and communication equipment, all Persons unable to file electronically within the existing certificated foot Pursuant to section 157.205 of the may mail similar pleadings to the print of the station. Installation of unit Commission’s regulations under the Federal Energy Regulatory Commission, will increase the overall hp at the 1 Adelphia Gateway, LLC, errata letter, December 888 First Street NE, Washington, DC facility from 5,625 hp to 8,625 hp and 9, 2020. 20426. Hand delivered submissions in increase the certificated capacity of its 2 Adelphia Gateway, LLC, 169 FERC 61,220 docketed proceedings should be system by 16,500 Dth/d, from 250,000 to (2019), order denying reh’g 171 FERC 61,049 (2020).

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NGA,3 any person 4 or the Commission’s being late and must explain why the Protests and motions to intervene staff may file a protest to the request. If time limitation should be waived and must be served on the applicant either no protest is filed within the time provide justification by reference to by mail or email (with a link to the allowed or if a protest is filed and then factors set forth in Rule 214(d) of the document) at: GRichman@ withdrawn within 30 days after the Commission’s Rules and Regulations. A NJResources.com, 1415 Wyckoff Road, allowed time for filing a protest, the person obtaining party status will be Wall, NJ 07719. Any subsequent proposed activity shall be deemed to be placed on the service list maintained by submissions by an intervenor must be authorized effective the day after the the Secretary of the Commission and served on the applicant and all other time allowed for protest. If a protest is will receive copies (paper or electronic) parties to the proceeding. Contact filed and not withdrawn within 30 days of all documents filed by the applicant information for parties can be after the time allowed for filing a and by all other parties. downloaded from the service list at the protest, the instant request for eService link on FERC Online. authorization will be considered by the Comments Commission. Any person wishing to comment on Tracking the Proceeding Protests must comply with the the project may do so. The Commission Throughout the proceeding, requirements specified in section considers all comments received about additional information about the project 157.205(e) of the Commission’s the project in determining the will be available from the Commission’s regulations,5 and must be submitted by appropriate action to be taken. To Office of External Affairs, at (866) 208– the protest deadline, which is February ensure that your comments are timely FERC, or on the FERC website at 16, 2021. A protest may also serve as a and properly recorded, please submit www.ferc.gov using the eLibrary link as motion to intervene so long as the your comments on or before February described above. The eLibrary link also protestor states it also seeks to be an 16, 2021. The filing of a comment alone provides access to the texts of all formal intervenor. will not serve to make the filer a party documents issued by the Commission, Interventions to the proceeding. To become a party, such as orders, notices, and you must intervene in the proceeding. rulemakings. Any person has the option to file a In addition, the Commission offers a How To File Protests, Interventions, and motion to intervene in this proceeding. free service called eSubscription which Comments Only intervenors have the right to allows you to keep track of all formal request rehearing of Commission orders There are two ways to submit issuances and submittals in specific issued in this proceeding and to protests, motions to intervene, and dockets. This can reduce the amount of subsequently challenge the comments. In both instances, please time you spend researching proceedings Commission’s orders in the U.S. Circuit reference the Project docket number by automatically providing you with Courts of Appeal. CP21–14–000 in your submission. notification of these filings, document To intervene, you must submit a summaries, and direct links to the motion to intervene to the Commission (1) You may file your protest, motion in accordance with Rule 214 of the to intervene, and comments by using the documents. For more information and to Commission’s Rules of Practice and Commission’s eFiling feature, which is register, go to www.ferc.gov/docs-filing/ Procedure 6 and the regulations under located on the Commission’s website esubscription.asp. the NGA 7 by the intervention deadline (www.ferc.gov) under the link to Dated: December 16, 2020. for the project, which is February 16, Documents and Filings. New eFiling Kimberly D. Bose, users must first create an account by 2021. As described further in Rule 214, Secretary. your motion to intervene must state, to clicking on eRegister. You will be asked to select the type of filing you are [FR Doc. 2020–28245 Filed 12–21–20; 8:45 am] the extent known, your position BILLING CODE 6717–01–P regarding the proceeding, as well as making; first select General and then your interest in the proceeding. For an select Protest, Intervention, or Comment on a Filing; or 8 individual, this could include your DEPARTMENT OF ENERGY status as a landowner, ratepayer, (2) You can file a paper copy of your resident of an impacted community, or submission by mailing it to the address Federal Energy Regulatory recreationist. You do not need to have below.9 Your submission must reference Commission property directly impacted by the the Project docket number CP21–14– project in order to intervene. For more 000. Kimberly D. Bose, Secretary, [Project No. 1889–085] information about motions to intervene, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC FirstLight MA Hydro LLC; Notice refer to the FERC website at https:// Establishing Procedural Schedule for www.ferc.gov/resources/guides/how-to/ 20426. The Commission encourages Licensing and Deadline for intervene.asp. Submission of Final Amendments All timely, unopposed motions to electronic filing of submissions (option intervene are automatically granted by 1 above) and has eFiling staff available Take notice that the following operation of Rule 214(c)(1). Motions to to assist you at (202) 502–8258 or amended hydroelectric application has intervene that are filed after the [email protected]. been filed with the Commission and is intervention deadline are untimely and available for public inspection. may be denied. Any late-filed motion to 8 Additionally, you may file your comments a. Type of Application: New Major intervene must show good cause for electronically by using the eComment feature, License. which is located on the Commission’s website at www.ferc.gov under the link to Documents and b. Project No.: 1889–085. 3 18 CFR 157.205. Filings. Using eComment is an easy method for c. Date Material Amendments Filed: 4 Persons include individuals, organizations, interested persons to submit brief, text-only December 4, 2020. businesses, municipalities, and other entities. 18 comments on a project. d. Applicant: FirstLight MA Hydro CFR 385.102(d). 9 Hand-delivered submissions in docketed 5 18 CFR 157.205(e). proceedings should be delivered to Health and LLC (FirstLight). 6 18 CFR 385.214. Human Services, 12225 Wilkins Avenue, Rockville, e. Name of Project: Turners Falls 7 18 CFR 157.10. Maryland 20852. Hydroelectric Project (project).

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f. Location: The existing project is between elevations 176.0 feet and 185.0 (Gatehouse fishway); and (16) located on the Connecticut River in feet NGVD 29; (4) a 214-foot-long, 33- appurtenant facilities. Windham County, Vermont, Cheshire foot-high gatehouse that includes six 9- The Turners Falls Project operates in County, New Hampshire, and Franklin foot-wide, 10.66-foot-high gates and peaking and run-of-river modes, County, Massachusetts. There are nine 9.5-foot-wide, 12.6-foot-high gates; depending on inflows. Average annual approximately 20 acres of federal lands (5) a 2.1-mile-long, 120- to 920-foot- generation from 2011–2019 was within the current project boundary wide, 17- to 30-foot-deep power canal; approximately 332,351 MW-hours. associated with the U.S. Geological (6) a 700-foot-long, 100-foot-wide, 16- to FirstLight proposes three changes to Survey’s Silvio Conte Anadromous Fish 23-foot-deep branch canal; (7) the the current project boundary: (1) Laboratory. Station No.1 generating facility that Remove 0.2 acre of land associated with g. Filed Pursuant to: Federal Power includes: (i) Eight 15-foot-wide bays residential property; (2) add 0.8 acre of Act, 16 U.S.C. 791 (a)–825(r). with trashracks with 2.625-inch clear- land for recreation purposes; and (3) h. Applicant Contact: Mr. Justin bar spacing; (ii) four 100-foot-long, 13.1- remove 20.1 acres of land associated Trudell, Vice President, Operations, to 14-foot-diameter penstocks; (iii) a with the U.S. Geological Survey’s Silvio FirstLight MA Hydro LLC, 111 South 134-foot-long, 64-foot-wide powerhouse Conte Anadromous Fish Laboratory. Bedford Street, Suite 103, Burlington, that contains five turbine-generator FirstLight proposes to construct new MA 01803; (781) 653–4247 or units with a total installed capacity of fish passage facilities and recreational [email protected]. i. FERC Contact: Steve Kartalia, (202) 5.693 megawatts (MW); (iv) four 21-foot- access trails. FirstLight also proposes 502–6131 or [email protected]. long, 6.5-foot-diameter draft tubes; (v) changes to project operation that would j. This application is not ready for five 40- to 70-foot-long, 2.4-kilovolt (kV) generally reduce impoundment environmental analysis at this time. generator leads that connect the turbine- fluctuations and increase flow releases k. FirstLight Hydro Generating generator units to a generator bus; (vi) to the portion of the Connecticut River Company filed an application for a new a 110-foot-long, 2.4-kV generator lead that is bypassed by the project. The license for the Turners Falls that connects the generator bus to a specific proposed changes are described Hydroelectric Project No. 1889 (project) substation; and (vii) a 20-foot-long, 2.4- in the amended application. on April 29, 2016. In the license kV generator lead that connects the m. In addition to publishing the full application, FirstLight Hydro substation to three transformers; (8) the text of this notice in the Federal Generating Company stated that it could Cabot Station generating facility that Register, the Commission provides all not develop a complete licensing includes: (i) An intake structure with interested persons an opportunity to proposal for the project since many of 217-foot-wide, 31-foot-high trashracks view and/or print the contents of this the required environmental studies were with 0.94-inch and 3.56-inch clear-bar notice, as well as other documents in not complete as of April 29, 2016. spacing; (ii) six 70-foot-long penstocks; the proceeding (e.g., license application) FirstLight Hydro Generating Company (iii) a 235-foot-long, 79.5-foot-wide via the internet through the indicated that it would amend the powerhouse that contains six turbine- Commission’s Home Page (http:// license application after completing generator units with a total installed www.ferc.gov) using the eLibrary link. additional field work, consultation, and capacity of 62.016 MW; (iv) six 41-foot- Enter the docket number excluding the analyses on the required studies. On long, 12.5- to 14.5-foot-diameter draft last three digits in the docket number July 11, 2019, Commission staff tubes; (v) six 80- to 250-foot-long, 13.8- field to access the document (P–1889). approved the transfer of the license for kV generator leads that connect the At this time, the Commission has the project from FirstLight Hydro turbine-generator units to a generator suspended access to the Commission’s Generating Company to FirstLight MA bus; (vi) a 60-foot-long, 13.8-kV Public Reference Room due to the Hydro LLC. FirstLight MA Hydro LLC generator lead that connects the proclamation declaring a National filed material amendments to the final generator bus to the powerhouse roof; Emergency concerning the Novel license application on December 4, and (vii) a 200-foot-long, 13.8-kV Coronavirus Disease (COVID–19) issued 2020. generator lead that connects to a by the President on March 13, 2020. For l. Project Description: The existing transformer; (9) eight 13.6-foot-wide, assistance, contact FERC at Turners Falls Project consists of: (1) A 16.7-foot-high power canal spillway [email protected] or call 630-foot-long, 35-foot-high dam gates that are adjacent to Cabot Station; toll-free, (866) 208–3676 or (202) 502– (Montague dam) that includes: (i) Four (10) a 16.2-foot-wide, 13.1-foot-high log 8659 (TTY). 120-foot-wide, 13.25-foot-high bascule sluice gate in the Cabot Station forebay n. You may also register online at gates; and (ii) a 170-foot-long fixed with an 8-foot-wide weir for https://ferconline.ferc.gov/ section with a crest elevation of 185.5 downstream fish passage; (11) a 200- FERCOnline.aspx to be notified via feet National Geodetic Vertical Datum of foot-long, 7-foot-diameter drainage email of new filings and issuances 1929 (NGVD 29); (2) a 493-foot-long, 55- tunnel (Keith Drainage Tunnel) and related to this or other pending projects. foot-high dam (Gill dam) that includes: headgate; (12) a 955-foot-long, 5-foot- For assistance, contact FERC Online (i) Three 40-foot-wide, 39-foot-high diameter lower drainage tunnel; (13) an Support. tainter gates; and (ii) 97.3- and 207.5- 850-foot-long, 16-foot-wide, 10-foot-high o. Procedural Schedule: The foot-long fixed sections with crest fishway (Cabot fishway); (14) a 500-foot- application will be processed according elevations of 185.5 feet NGVD 29; (3) a long, 10-foot-wide, 10-foot-high fishway to the following preliminary Hydro 2,110-acre impoundment with a useable (Spillway fishway); (15) a 225-foot-long, Licensing Schedule. Revisions to the storage volume of 16,150 acre-feet 16-foot-wide, 17.5-foot-high fishway schedule may be made as appropriate.

Milestone Target date

Commission issues letters identifying application deficiencies and requesting additional information ...... January 2021. Notice of Acceptance/Notice of Ready for Environmental Analysis ...... May 2021. Filing of recommendations, preliminary terms and conditions, and fishway prescriptions ...... July 2021. Reply Comments due ...... August 2021.

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p. Final amendments to the amend the license application after generating mode when electricity application must be filed with the completing additional field work, demand is high. In the summer and Commission no later than 30 days from consultation, and analyses on the winter, the project generally operates in the issuance date of the notice of ready required studies. On July 11, 2019, a peaking mode in the morning and late for environmental analysis. Commission staff approved the transfer afternoon. In the spring and fall, the Dated: December 16, 2020. of the license for the project from project may operate in a peaking mode FirstLight to Northfield Mountain LLC. one or two times a day depending on Kimberly D. Bose, Northfield Mountain LLC filed material electricity demand. The existing license Secretary. amendments to the final license requires maintaining the upper reservoir [FR Doc. 2020–28235 Filed 12–21–20; 8:45 am] application on December 4, 2020. between elevations 938.0 feet and BILLING CODE 6717–01–P l. Project Description: The existing 1,000.5 feet NGVD 29 (i.e., a maximum Northfield Mountain Pumped Storage reservoir drawdown of 62.5 feet). Project consists of: (1) A 1-mile-long, 30- Average annual generation at the DEPARTMENT OF ENERGY foot-wide, 30- to 140-foot-high main Northfield Mountain Project from 2011– dam that includes: (i) An intake Federal Energy Regulatory 2019 was 889,845 MW-hours, and structure with two 7-foot-wide, 9-foot- Commission average annual energy consumption for high sluice gates and an 8-foot-diameter pumping from 2011 to 2019 was [Project No. 2485–071] outlet pipe; and (ii) a 589-foot-long, 2- 1,189,640 MW-hours. foot-diameter low-level outlet pipe; (2) a Northfield proposes three changes to Northfield Mountain LLC; Notice 425-foot-long, 25-foot-high dike (North the current project boundary: (1) Establishing Procedural Schedule for dike); (3) a 2,800-foot-long, 45-foot-high Remove 0.2 acre of land associated with Licensing and Deadline for dike (Northwest dike); (4) a 1,700-foot- residential property; (2) remove 8.1 acre Submission of Final Amendments long, 40-foot-long dike (West dike); (5) of land referred to as ‘‘Fuller Farm’’ that a 327-foot-long, 10- to 20-foot-high includes residential and agricultural (December 16, 2020) gravity dam; (6) an ungated 550-foot- structures; and (3) add 135.5 acres of Take notice that the following long, 6-foot-high spillway structure with land that includes recreation trails. amended hydroelectric application has a 20-foot-long notch at an elevation of Northfield proposes to increase the been filed with the Commission and is 1,005.0 feet National Geodetic Vertical maximum water surface elevation of the available for public inspection. Datum of 1929 (NGVD 29); (7) a 286- upper reservoir to 1,004.5 feet NGVD 29 a. Type of Application: New Major acre impoundment (upper reservoir) and decrease the minimum water License. with a useable storage volume of 12,318 surface elevation of the upper reservoir b. Project No.: 2485–071. acre-feet between elevations 938.0 feet to 920.0 feet NGVD 29 (i.e., a maximum c. Date Material Amendments Filed: and 1,000.5 feet NGVD 29; (8) a 2,110- reservoir drawdown of 84.5 feet) year- December 4, 2020. acre impoundment (lower reservoir or round. Northfield proposes to install a d. Applicant: Northfield Mountain Turners Falls impoundment); (9) a barrier net in the lower impoundment to LLC (Northfield). 1,890-foot-long, 130-foot-wide intake prevent fish entrainment. Northfield e. Name of Project: Northfield channel with a 63-foot-long, 9-foot-high also proposes to periodically dredge the Mountain Pumped Storage Project. submerged check dam and two 6-foot- upper reservoir and to construct new f. Location: The existing project is wide, 2.75-foot-high sluice gates and recreation access trails. The specific located on the Connecticut River in two 18-foot-wide stoplogs; (10) a 200- proposed changes are described in the Windham County, Vermont, Cheshire foot-long, 55-foot-wide, 80-foot-high amended application. County, New Hampshire, and Franklin pressure shaft; (11) an 853-foot-long, 31- m. In addition to publishing the full County, Massachusetts. There are no foot-diameter penstock; (12) two 22- text of this notice in the Federal federal lands within the project foot-diameter, 100- to 150-foot-long Register, the Commission provides all boundary. penstocks; (13) four 340-foot-long, 9.5- interested persons an opportunity to g. Filed Pursuant to: Federal Power to 14-foot-diameter penstocks; (14) a view and/or print the contents of this Act, 16 U.S.C. 791(a)–825(r). 328-foot-long, 70-foot-wide powerhouse notice, as well as other documents in h. Applicant Contact: Mr. Justin that contains four reversible pump the proceeding (e.g., license application) Trudell, Vice President, Operations, turbine-generator units with a total via the internet through the Northfield Mountain LLC, 111 South installed capacity of 1,166.8 megawatts Commission’s Home Page (http:// Bedford Street, Suite 103, Burlington, (MW); (15) four 25-foot-long, 11-foot- www.ferc.gov) using the eLibrary link. MA 01803; (781) 653–4247 or diameter draft tubes that transition to a Enter the docket number excluding the [email protected]. 20-foot-long, 17-foot-diameter draft last three digits in the docket number i. FERC Contact: Steve Kartalia, (202) tube; (16) a 5,136-foot-long, 33-foot- field to access the document (P–2485). 502–6131 or [email protected]. wide, 31-foot-high horseshoe-shaped At this time, the Commission has j. This application is not ready for tailrace tunnel; (17) 35-foot-long, 40- suspended access to the Commission’s environmental analysis at this time. foot-high trapezoid-shaped stoplogs Public Reference Room due to the k. FirstLight Hydro Generating with 74.3- to 99.5-foot-wide, 48-foot- proclamation declaring a National Company (FirstLight) filed an high trashracks with 6-inch clear-bar Emergency concerning the Novel application for a new license for the spacing; (18) four 26-foot-long, 13.8- Coronavirus Disease (COVID–19) issued Northfield Mountain Pumped Storage kilovolt (kV) generator leads that by the President on March 13, 2020. For Project No. 2485 (project) on April 29, connect the turbine-generator units to assistance, contact FERC at 2016. In the license application, four transformers; (19) two 3,000-foot- [email protected] or call FirstLight stated that it could not long, 345-kV transmission lines; and toll-free, (866) 208–3676 or (202) 502– develop a complete licensing proposal (20) (21) appurtenant facilities. 8659 (TTY). for the project since many of the The existing Northfield Mountain n. You may also register online at required environmental studies were Pumped Storage Project generally https://ferconline.ferc.gov/ not complete as of April 29, 2016. operates in pumping mode when FERCOnline.aspx to be notified via FirstLight indicated that it would electricity demand is low and email of new filings and issuances

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related to this or other pending projects. o. Procedural Schedule: The Licensing Schedule. Revisions to the For assistance, contact FERC Online application will be processed according schedule may be made as appropriate. Support. to the following preliminary Hydro

Milestone Target date

Commission issues letters identifying application deficiencies and requesting additional information ...... January 2021. Notice of Acceptance/Notice of Ready for Environmental Analysis ...... May 2021. Filing of recommendations, preliminary terms and conditions, and fishway prescriptions ...... July 2021. Reply Comments due ...... August 2021.

p. Final amendments to the who will eFile a document and/or be Applicants: Midcontinent Express application must be filed with the listed as a contact for an intervenor Pipeline LLC. Commission no later than 30 days from must create and validate an Description: Joint Abbreviated the issuance date of the notice of ready eRegistration account using the Application of Midcontinent Express for environmental analysis. eRegistration link. Select the eFiling Pipeline LLC et al for Partial Lease Dated: December 16, 2020. link to log on and submit the Capacity Abandonment Authorization. Kimberly D. Bose, intervention or protests. Filed Date: 12/10/20. Persons unable to file electronically Accession Number: 202012105111. Secretary. may mail similar pleadings to the Comments Due: 5 p.m. ET 1/4/21. [FR Doc. 2020–28247 Filed 12–21–20; 8:45 am] Federal Energy Regulatory Commission, Docket Number: PR21–8–000. BILLING CODE 6717–01–P 888 First Street NE, Washington, DC Applicants: Interstate Power and 20426. Hand delivered submissions in Light Company. Description: § 284.123 Rate Filing: DEPARTMENT OF ENERGY docketed proceedings should be delivered to Health and Human 2020 Fuel Reimbursement Mechansim Federal Energy Regulatory Services, 12225 Wilkins Avenue, Report to be effective N/A. Commission Rockville, Maryland 20852. Filed Date: 12/15/20. In addition to publishing the full text Accession Number: 202012155048. [Docket No. ER21–653–000] of this document in the Federal Comments Due: 5 p.m. ET 1/5/21. Register, the Commission provides all Docket Number: PR21–9–000. Centerfield Cooper Solar, LLC; interested persons an opportunity to Applicants: Jefferson Island Storage & Supplemental Notice That Initial view and/or print the contents of this Hub, L.L.C. Market-Based Rate Filing Includes document via the internet through the Description: § 284.123 Rate Filing: Request for Blanket Section 204 Commission’s Home Page (http:// 2020 Fuel Reimbursement Mechansim Authorization ferc.gov) using the ‘‘eLibrary’’ link. Report to be effective N/A. This is a supplemental notice in the Enter the docket number excluding the Filed Date: 12/15/20. above-referenced proceeding of last three digits in the docket number Accession Number: 202012155063. Centerfield Cooper Solar, LLC’s field to access the document. At this Comments Due: 5 p.m. ET 1/5/21. application for market-based rate time, the Commission has suspended Docket Number: PR21–10–000. authority, with an accompanying rate access to the Commission’s Public Applicants: Valley Crossing Pipeline, tariff, noting that such application Reference Room, due to the LLC. includes a request for blanket proclamation declaring a National Description: § 284.123 Rate Filing: authorization, under 18 CFR part 34, of Emergency concerning the Novel 2020 Fuel Reimbursement Mechansim future issuances of securities and Coronavirus Disease (COVID–19), issued Report to be effective N/A. assumptions of liability. by the President on March 13, 2020. For Filed Date: 12/15/20. Any person desiring to intervene or to assistance, contact the Federal Energy Accession Number: 202012155075. protest should file with the Federal Regulatory Commission at Comments Due: 5 p.m. ET 1/5/21. Energy Regulatory Commission, 888 [email protected] or call Docket Numbers: RP21–232–001. First Street NE, Washington, DC 20426, toll-free, (886) 208–3676 or TYY, (202) Applicants: Cheniere Corpus Christi in accordance with Rules 211 and 214 502–8659. Pipeline, LP. Description: Compliance filing CCPL of the Commission’s Rules of Practice Dated: December 16, 2020. and Procedure (18 CFR 385.211 and Stage 3 Supplemental Compliance Kimberly D. Bose, 385.214). Anyone filing a motion to Filing CP18–513 to be effective 2/1/ intervene or protest must serve a copy Secretary. 2021. of that document on the Applicant. [FR Doc. 2020–28241 Filed 12–21–20; 8:45 am] Filed Date: 12/15/20. Notice is hereby given that the BILLING CODE 6717–01–P Accession Number: 20201215–5078. deadline for filing protests with regard Comments Due: 5 p.m. ET 12/28/20. to the applicant’s request for blanket Docket Numbers: RP21–309–000. authorization, under 18 CFR part 34, of DEPARTMENT OF ENERGY Applicants: Portland Natural Gas future issuances of securities and Transmission System. Federal Energy Regulatory Description: Compliance filing 2020 assumptions of liability, is January 5, Commission 2021. Fuel Reimbursement Mechansim Report The Commission encourages Combined Notice of Filings to be effective N/A. electronic submission of protests and Filed Date: 12/15/20. interventions in lieu of paper, using the Take notice that the Commission has Accession Number: 20201215–5035. FERC Online links at http:// received the following Natural Gas Comments Due: 5 p.m. ET 12/28/20. www.ferc.gov. To facilitate electronic Pipeline Rate and Refund Report filings: The filings are accessible in the service, persons with internet access Docket Number: CP21–16–000. Commission’s eLibrary system (https://

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elibrary.ferc.gov/idmws/search/ Hydro, LLC, 40 Pleasant Street, Suite lead that connects the turbine-generator fercgensearch.asp) by querying the 202, Portsmouth, NH 03801; (603) 498– units to two step-up transformers; (7) a docket number. 2851 or [email protected]. 984-foot-long, 15-foot-wide upstream Any person desiring to intervene or i. FERC Contact: Steve Kartalia, (202) fishway; and (8) appurtenant facilities. protest in any of the above proceedings 502–6131 or [email protected]. Great River Hydro operates the project j. This application is not ready for must file in accordance with Rules 211 in coordination with its upstream and 214 of the Commission’s environmental analysis at this time. k. Great River Hydro filed an Wilder Project No. 1892 and Bellows Regulations (18 CFR 385.211 and Falls Project No. 1855 and in a peaking 385.214) on or before 5:00 p.m. Eastern application for a new license for the Vernon Hydroelectric Project No. 1904 mode. Average annual generation is time on the specified comment date. approximately 158,028 MW-hours. Protests may be considered, but on May 1, 2017. In the license application, Great River Hydro stated Great River Hydro is proposing changes intervention is necessary to become a to project operation that would reduce party to the proceeding. that it could not develop a complete licensing proposal for the project since impoundment fluctuations and increase eFiling is encouraged. More detailed the stability of downstream flow information relating to filing many of the required environmental studies were not complete as of May 1, releases relative to current project requirements, interventions, protests, operation, including targeted water service, and qualifying facilities filings 2017. Great River Hydro indicated that it would amend the license application surface elevation levels and flow can be found at: http://www.ferc.gov/ ramping rates. Great River Hydro docs-filing/efiling/filing-req.pdf. For after completing additional field work, consultation, and analyses on the proposes several protection, mitigation, other information, call (866) 208–3676 and enhancement measures for aquatic, (toll free). For TTY, call (202) 502–8659. required studies. Great River Hydro filed material amendments to the final terrestrial, cultural, and recreation Dated: December 16, 2020. license application on December 7, resources, and threatened and Kimberly D. Bose, 2020. endangered species. The specific Secretary. l. Project Description: The existing proposed changes are described in the [FR Doc. 2020–28236 Filed 12–21–20; 8:45 am] Vernon Project consists of: (1) A 956- amended application. BILLING CODE 6717–01–P foot-long, 58-foot-high concrete dam m. In addition to publishing the full that includes: (a) 356-foot-long section text of this notice in the Federal integral to the powerhouse; and (b) a Register, the Commission provides all DEPARTMENT OF ENERGY 600-foot-long overflow spillway section interested persons an opportunity to that includes: (i) A 9-foot-high, 6-foot- view and/or print the contents of this Federal Energy Regulatory wide downstream fishway sluice; (ii) a notice, as well as other documents in Commission 13-foot-high, 13-foot-wide trash/ice the proceeding (e.g., license application) [Project No. 1904–078] sluice; (iii) two 20-foot-high, 50-foot- via the internet through the wide tainter gates; (iv) four 10-foot-high, Commission’s Home Page (http:// Great River Hydro, LLC; Notice 50-foot-wide tainter gates; (v) two 10- www.ferc.gov) using the eLibrary link. Establishing Procedural Schedule for foot-high, 50-foot-wide hydraulic panel Enter the docket number excluding the Licensing and Deadline for bays; (vi) two 10-foot-high, 50-foot-wide last three digits in the docket number Submission of Final Amendments stanchion bays; (vii) a 10-foot-high, field to access the document (P–1904). 42.5-foot-wide stanchion bay; and (viii) At this time, the Commission has Take notice that the following eight 7-foot-high, 9-foot-wide hydraulic suspended access to the Commission’s amended hydroelectric application has flood gates; (2) a 26-mile-long, 2,550- Public Reference Room due to the been filed with the Commission and is acre impoundment with a useable proclamation declaring a National available for public inspection. storage volume of 18,300 acre-feet Emergency concerning the Novel a. Type of Application: New Major between elevations 212.13 and 220.13 Coronavirus Disease (COVID–19) issued License. feet National Geodetic Vertical Datum of by the President on March 13, 2020. For b. Project No.: 1904–078. 1929 (NGVD 29); (3) eight assistance, contact FERC at c. Date Material Amendments Filed: approximately 30-foot-high trashracks [email protected] or call December 7, 2020. with 1.75-inch clear bar spacing and toll-free, (866) 208–3676 or (202) 502– d. Applicant: Great River Hydro, LLC two approximately 30-foot-high 8659 (TTY). (Great River Hydro). trashracks with 3.625-inch clear bar e. Name of Project: Vernon spacing; (4) a 356-foot-long, 55-foot- n. You may also register online at Hydroelectric Project. wide, 45-foot-high reinforced concrete, https://ferconline.ferc.gov/ f. Location: The existing project is steel, and brick powerhouse containing FERCOnline.aspx to be notified via located on the Connecticut River in four 2-megawatt (MW) vertical Francis email of new filings and issuances Windham County, Vermont, and turbine-generator units, four 4–MW related to this or other pending projects. Cheshire County, New Hampshire. vertical Kaplan turbine-generator units, For assistance, contact FERC Online There are no federal lands within the and two 4.2–MW vertical Francis Support. project boundary. turbine-generator units, for a total o. Procedural Schedule: The g. Filed Pursuant to: Federal Power project capacity of 32.4 MW; (5) ten application will be processed according Act, 16 U.S.C. 791(a)–825(r). concrete draft tubes ranging from 16 to to the following preliminary Hydro h. Applicant Contact: John Ragonese, 27 feet in diameter; (6) a 500-foot-long, Licensing Schedule. Revisions to the FERC License Manager, Great River 13.8-kilovolt underground generator schedule may be made as appropriate.

Milestone Target date

Commission issues letter identifying application deficiencies and requesting additional information ...... January 2021. Notice of Acceptance/Notice of Ready for Environmental Analysis ...... May 2021. Filing of recommendations, preliminary terms and conditions, and fishway prescriptions ...... July 2021.

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Milestone Target date

Reply Comments due ...... August 2021.

p. Final amendments to the Accession Number: 20201215–5158. Description: Tariff Cancellation: application must be filed with the Comments Due: 5 p.m. ET 1/5/21. Cancellation of NSTAR–HQUS Transfer Commission no later than 30 days from Docket Numbers: ER21–654–000. Agreement (MMWEC Use Rights) to be the issuance date of the notice of ready Applicants: PGR Lessee O, LLC. effective 12/15/2020. for environmental analysis. Description: Baseline eTariff Filing: Filed Date: 12/15/20. Dated: December 16, 2020. PGR Lessee O, LLC MBR Tariff to be Accession Number: 20201215–5189. Comments Due: 5 p.m. ET 1/5/21. Kimberly D. Bose, effective 12/16/2020. Secretary. Filed Date: 12/15/20. Docket Numbers: ER21–661–000. Accession Number: 20201215–5161. Applicants: NSTAR Electric [FR Doc. 2020–28244 Filed 12–21–20; 8:45 am] Comments Due: 5 p.m. ET 1/5/21. Company. BILLING CODE 6717–01–P Docket Numbers: ER21–655–000. Description: Tariff Cancellation: Applicants: Arizona Public Service Cancellation of NSTAR–HQUS Transfer DEPARTMENT OF ENERGY Company. Agreement (ENE Use Rights) to be Description: Notice of cancellation of effective 12/15/2020. Federal Energy Regulatory Rate Schedule No. 182 of Arizona Filed Date: 12/15/20. Commission Public Service Company. Accession Number: 20201215–5190. Filed Date: 12/15/20. Comments Due: 5 p.m. ET 1/5/21. Combined Notice of Filings #1 Accession Number: 20201215–5176. Docket Numbers: ER21–662–000. Comments Due: 5 p.m. ET 1/5/21. Take notice that the Commission Applicants: Mobile Energy, LLC. received the following exempt Docket Numbers: ER21–656–000. Description: § 205(d) Rate Filing: wholesale generator filings: Applicants: Florida Power & Light Notice of Succession and Revisions to Company. MBR Tariff, and Request for Waivers to Docket Numbers: EG21–55–000. Description: Baseline eTariff Filing: be effective 12/17/2020. Applicants: Dry Lake Solar Holdings FPL’s Seventh Amendment to LCEC Filed Date: 12/16/20. LLC. Rate Schedule No. 317 to be effective Accession Number: 20201216–5038. Description: Notice of Self- 12/16/2020. Comments Due: 5 p.m. ET 1/6/21. Certification of Exempt Wholesale Filed Date: 12/15/20. Generator Status of Dry Lake Solar Docket Numbers: ER21–663–000. Accession Number: 20201215–5181. Applicants: Tri-State Generation and Holdings LLC. Comments Due: 5 p.m. ET 1/5/21. Filed Date: 12/11/20. Transmission Association, Inc. Accession Number: 20201211–5214. Docket Numbers: ER21–657–000. Description: Tariff Cancellation: Comments Due: 5 p.m. ET 1/4/21. Applicants: Pacific Gas and Electric Notice of Cancellation of Rate Schedule Company. Take notice that the Commission FERC No. 88 to be effective 12/17/2020. Description: § 205(d) Rate Filing: Filed Date: 12/16/20. received the following electric rate Transmission Access Charge Balancing Accession Number: 20201216–5049. filings: Account Adjustment (2021 TACBAA) to Comments Due: 5 p.m. ET 1/6/21. Docket Numbers: ER20–1062–001. be effective 3/1/2021. Docket Numbers: ER21–664–000. Applicants: Midcontinent Filed Date: 12/15/20. Independent System Operator, Inc. Applicants: Elmwood Park Power, Accession Number: 20201215–5185. LLC. Description: Midcontinent Comments Due: 5 p.m. ET 1/5/21. Independent System Operator, Inc. Description: Tariff Cancellation: Docket Numbers: ER21–658–000. submits tariff filing per 35.19a(b): Notice of Cancellation to be effective Applicants: Florida Power & Light Refund Report _Garden Wind to be 3/12/2021. Company. effective N/A under ER20–2062. Filed Date: 12/16/20. Description: § 205(d) Rate Filing: Filed Date: 12/16/20. Accession Number: 20201216–5073. Accession Number: 20201216–5183. FPL’s Eighth Amendment to FKEC’s Comments Due: 5 p.m. ET 1/6/21. Comments Due: 5 p.m. ET 1/6/21. Rate Schedule 322 to be effective 12/16/ Docket Numbers: ER21–665–000. 2020. Applicants: PJM Interconnection, Docket Numbers: ER21–402–001. Filed Date: 12/15/20. Applicants: Midcontinent L.L.C. Accession Number: 20201215–5186. Description: § 205(d) Rate Filing: Independent System Operator, Inc. Comments Due: 5 p.m. ET 1/5/21. Description: Tariff Amendment: Correction to Original ISA, SA No. 5691; 2020–12–16_Shared Network Upgrades Docket Numbers: ER21–659–000. Queue No. AF1–194 (amend) to be Amendment Filing to be effective 2/1/ Applicants: NSTAR Electric effective 6/30/2020. 2021. Company. Filed Date: 12/16/20. Filed Date: 12/16/20. Description: Tariff Cancellation: Accession Number: 20201216–5104. Accession Number: 20201216–5146. Cancellation Transfer Agrmnt between Comments Due: 5 p.m. ET 1/6/21. Comments Due: 5 p.m. ET 1/6/21. NSTAR NEMC for transfer of CMEEC Docket Numbers: ER21–666–000. Docket Numbers: ER21–653–000. Use Rights to be effective 12/15/2020. Applicants: WPPI Energy. Applicants: Centerfield Cooper Solar, Filed Date: 12/15/20. Description: Baseline eTariff Filing: LLC. Accession Number: 20201215–5188. RPS Rate Schedule baseline to be Description: Baseline eTariff Filing: Comments Due: 5 p.m. ET 1/5/21. effective 3/1/2021. Centerfield Cooper Solar, LLC MBR Docket Numbers: ER21–660–000. Filed Date: 12/16/20. Tariff to be effective 12/16/2020. Applicants: NSTAR Electric Accession Number: 20201216–5160. Filed Date: 12/15/20. Company. Comments Due: 5 p.m. ET 1/6/21.

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Take notice that the Commission 16 U.S.C. 825d (b) (2020) and Part 45 of DEPARTMENT OF ENERGY received the following electric securities the Federal Energy Regulatory filings: Commission’s (Commission) Rules of Federal Energy Regulatory Docket Numbers: ES21–17–000. Practice and Procedure, 18 CFR part Commission Applicants: Mid-Atlantic Interstate 45.8 (2020). Transmission, LLC. Any person desiring to intervene or to [Docket Nos. CP20–528–001; CP20–528– Description: Application Under protest this filing must file in 000] Section 204 of the Federal Power Act for accordance with Rules 211 and 214 of Authorization to Issue Securities for the Commission’s Rules of Practice and Stingray Pipeline Company, L.L.C.; Mid-Atlantic Interstate Transmission, Procedure (18 CFR 385.211, 385.214). Notice of Amendment to Application LLC. Protests will be considered by the Take notice that on December 11, Filed Date: 12/15/20. Commission in determining the 2020, Stingray Pipeline Company, L.L.C. Accession Number: 20201215–5178. appropriate action to be taken but will (Stingray), 1300 Main Street, Houston, Comments Due: 5 p.m. ET 1/5/21. not serve to make protestants parties to Texas 77002, filed an application under Docket Numbers: ES21–18–000. the proceeding. Any person wishing to section 7(b) of the Natural Gas Act Applicants: Midcontinent become a party must file a notice of (NGA) and Part 157 of the Commission’s Independent System Operator, Inc. intervention or motion to intervene, as regulations seeking authorization to Description: Application Under appropriate. Such notices, motions, or amend its application in Docket No. Section 204 of the Federal Power Act for protests must be filed on or before the CP20–528–000 to abandon certain Authorization to Issue Securities for comment date. On or before the facilities in the WC 509 System by Midcontinent Independent System comment date, it is not necessary to removal or in place, rather than by sale Operator, Inc. serve motions to intervene or protests to Triton Gathering LLC (Triton) that Filed Date: 12/16/20. on persons other than the Applicant. were damaged and/or destroyed by Accession Number: 20201216–5153. In addition to publishing the full text Comments Due: 5 p.m. ET 1/6/21. Hurricane Delta. Specifically, Stingray of this document in the Federal seeks authorization to: (1) Abandon in The filings are accessible in the Register, the Commission provides all place approximately 14.98 miles of 24- Commission’s eLibrary system (https:// interested persons an opportunity to inch-diameter pipeline and (2) abandon elibrary.ferc.gov/idmws/search/ view and/or print the contents of this by removal its 50 percent ownership fercgensearch.asp) by querying the document via the internet through the interest in the A330 Platform and docket number. Commission’s Home Page (http:// related equipment, all located in federal Any person desiring to intervene or ferc.gov) using the eLibrary link. Enter waters, offshore Louisiana, all as more protest in any of the above proceedings the docket number excluding the last fully set forth in the application which must file in accordance with Rules 211 three digits in the docket number field is on file with the Commission and open and 214 of the Commission’s to access the document. At this time, the for public inspection. Regulations (18 CFR 385.211 and Commission has suspended access to In addition to publishing the full text 385.214) on or before 5:00 p.m. Eastern the Commission’s Public Reference of this document in the Federal time on the specified comment date. Room, due to the proclamation Register, the Commission provides all Protests may be considered, but declaring a National Emergency interested persons an opportunity to intervention is necessary to become a concerning the Novel Coronavirus view and/or print the contents of this party to the proceeding. Disease (COVID–19), issued by the document via the internet through the eFiling is encouraged. More detailed President on March 13, 2020. For Commission’s Home Page (http:// information relating to filing assistance, contact the Federal Energy ferc.gov) using the eLibrary link. Enter requirements, interventions, protests, Regulatory Commission at the docket number excluding the last service, and qualifying facilities filings [email protected] or call three digits in the docket number field can be found at: http://www.ferc.gov/ toll-free, (886) 208–3676 or TYY, (202) to access the document. At this time, the docs-filing/efiling/filing-req.pdf. For 502–8659. Commission has suspended access to other information, call (866) 208–3676 The Commission strongly encourages (toll free). For TTY, call (202) 502–8659. the Commission’s Public Reference electronic filings of comments, protests Room, due to the proclamation Dated: December 16, 2020. and interventions in lieu of paper using declaring a National Emergency Kimberly D. Bose, the ‘‘eFiling’’ link at http:// concerning the Novel Coronavirus Secretary. www.ferc.gov. Persons unable to file Disease (COVID–19), issued by the [FR Doc. 2020–28238 Filed 12–21–20; 8:45 am] electronically may mail similar President on March 13, 2020. For pleadings to the Federal Energy BILLING CODE 6717–01–P assistance, contact the Federal Energy Regulatory Commission, 888 First Street Regulatory Commission at NE, Washington, DC 20426. Hand [email protected] or call DEPARTMENT OF ENERGY delivered submissions in docketed toll-free, (886) 208–3676 or TYY, (202) proceedings should be delivered to 502–8659. Federal Energy Regulatory Health and Human Services, 12225 Any questions regarding the proposed Commission Wilkins Avenue, Rockville, Maryland project should be directed to Blair 20852. [Docket No. ID–5922–003] Lichtenwalter, Senior Director of Comment Date: 5:00 p.m. Eastern Certificates, Stingray Pipeline Company, Lankford, Kelly; Notice of Filing Time on January 5, 2021. L.L.C., 1300 Main Street, Houston, Take notice that on December 15, Dated: December 16, 2020. Texas 77002; by phone at (713) 989– 2020, Kelly Lankford submitted for Kimberly D. Bose, 2605 or by email at blair.lichtenwalter@ filing, application for authority to hold Secretary. energytransfer.com. interlocking positions, pursuant to [FR Doc. 2020–28233 Filed 12–21–20; 8:45 am] Pursuant to Section 157.9 of the section 305(b) of the Federal Power Act, BILLING CODE 6717–01–P Commission’s Rules of Practice and

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Procedure,1 within 90 days of this attaching them as a file with your in the proceeding. [For an individual, Notice the Commission staff will either: submission. New eFiling users must this could include your status as a Complete its environmental review and first create an account by clicking on landowner, ratepayer, resident of an place it into the Commission’s public eRegister. You will be asked to select impacted community, or recreationist. record (eLibrary) for this proceeding; or the type of filing you are making; first You do not need to have property issue a Notice of Schedule for select ‘‘General’’ and then select directly impacted by the project in order Environmental Review. If a Notice of ‘‘Comment on a Filing’’; or to intervene.] For more information Schedule for Environmental Review is (3) You can file a paper copy of your about motions to intervene, refer to the issued, it will indicate, among other comments by mailing them to the FERC website at https://www.ferc.gov/ milestones, the anticipated date for the following address below.2 Your written resources/guides/how-to/intervene.asp. Commission staff’s issuance of the final comments must reference the Project There are two ways to submit your environmental impact statement (FEIS) docket number (CP20–528–001). motion to intervene. In both instances, or environmental assessment (EA) for Kimberly D. Bose, Secretary, Federal please reference the Project docket this proposal. The filing of an EA in the Energy Regulatory Commission, 888 number CP20–528–001 in your Commission’s public record for this First Street NE, Washington, DC 20426. submission. proceeding or the issuance of a Notice The Commission encourages (1) You may file your motion to of Schedule for Environmental Review electronic filing of comments (options 1 intervene by using the Commission’s will serve to notify federal and state and 2 above) and has eFiling staff eFiling feature, which is located on the agencies of the timing for the available to assist you at (202) 502–8258 Commission’s website (www.ferc.gov) completion of all necessary reviews, and or [email protected]. under the link to Documents and Persons who comment on the the subsequent need to complete all Filings. New eFiling users must first environmental review of this project federal authorizations within 90 days of create an account by clicking on will be placed on the Commission’s the date of issuance of the Commission eRegister. You will be asked to select environmental mailing list and will staff’s FEIS or EA. the type of filing you are making; first receive notification when the Public Participation environmental documents (EA or EIS) select General and then select Intervention. The eFiling feature There are two ways to become are issued for this project and will be notified of meetings associated with the includes a document-less intervention involved in the Commission’s review of option; for more information, visit this project: You can file comments on Commission’s environmental review process. https://www.ferc.gov/docs-filing/efiling/ the project, and you can file a motion document-less-intervention.pdf.; or to intervene in the proceeding. There is The Commission considers all (2) You can file a paper copy of your no fee or cost for filing comments or comments received about the project in motion to intervene, along with three intervening. The deadline for filing a determining the appropriate action to be copies, by mailing the documents to the motion to intervene is 5:00 p.m. Eastern taken. However, the filing of a comment address below.6 Your motion to Time on January 6, 2021. alone will not serve to make the filer a party to the proceeding. To become a intervene must reference the Project Comments party, you must intervene in the docket number CP20–528–001. Any person wishing to comment on proceeding. For instructions on how to Kimberly D. Bose, Secretary, Federal the project may do so. Comments may intervene, see below. Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426. include statements of support or Interventions objections to the project as a whole or The Commission encourages specific aspects of the project. The more Any person, which includes electronic filing of motions to intervene specific your comments, the more useful individuals, organizations, businesses, (option 1 above) and has eFiling staff they will be. To ensure that your municipalities, and other entities,3 has available to assist you at (202) 502–8258 comments are timely and properly the option to file a motion to intervene or [email protected]. recorded, please submit your comments in this proceeding. Only intervenors Motions to intervene must be served on or before January 6, 2021. have the right to request rehearing of on the applicant either by mail or email There are three methods you can use Commission orders issued in this at: 1300 Main Street, Houston, Texas to submit your comments to the proceeding and to subsequently 77002 or at blair.lichtenwalter@ Commission. In all instances, please challenge the Commission’s orders in energytransfer.com. Any subsequent reference the Project docket number the U.S. Circuit Courts of Appeal. submissions by an intervenor must be CP20–528–001 in your submission. To intervene, you must submit a served on the applicant and all other (1) You may file your comments motion to intervene to the Commission parties to the proceeding. Contact electronically by using the eComment in accordance with Rule 214 of the information for parties can be feature, which is located on the Commission’s Rules of Practice and downloaded from the service list at the Commission’s website at www.ferc.gov Procedure 4 and the regulations under eService link on FERC Online. Service under the link to Documents and the NGA 5 by the intervention deadline can be via email with a link to the Filings. Using eComment is an easy for the project, which is January 6, 2021. document. method for interested persons to submit As described further in Rule 214, your All timely, unopposed 7 motions to brief, text-only comments on a project; motion to intervene must state, to the intervene are automatically granted by (2) You may file your comments extent known, your position regarding operation of Rule 214(c)(1).8 Motions to electronically by using the eFiling the proceeding, as well as your interest feature, which is located on the 6 Hand delivered submissions in docketed Commission’s website (www.ferc.gov) 2 Hand delivered submissions in docketed proceedings should be delivered to Health and under the link to Documents and proceedings should be delivered to Health and Human Services, 12225 Wilkins Avenue, Rockville, Human Services, 12225 Wilkins Avenue, Rockville, Filings. With eFiling, you can provide Maryland 20852. Maryland 20852. 7 The applicant has 15 days from the submittal of comments in a variety of formats by 3 18 CFR 385.102(d). a motion to intervene to file a written objection to 4 18 CFR 385.214. the intervention. 1 18 CFR (Code of Federal Regulations) 157.9. 5 18 CFR 157.10. 8 18 CFR 385.214(c)(1).

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intervene that are filed after the the November 30, 2020 Order j. This application is not ready for intervention deadline are untimely and (Dominion Energy Transmission, Inc., environmental analysis at this time. may be denied. Any late-filed motion to 173 FERC 61,188 (2020)). k. Great River Hydro filed an intervene must show good cause for Commission conferences are application for a new license for the being late and must explain why the accessible under section 508 of the Wilder Hydroelectric Project No. 1892 time limitation should be waived and Rehabilitation Act of 1973. For on May 1, 2017. In the license provide justification by reference to accessibility accommodations, please application, Great River Hydro stated factors set forth in Rule 214(d) of the email [email protected] or call toll that it could not develop a complete Commission’s Rules and Regulations.9 free 1–866–208–3372 (voice) or 202– licensing proposal for the project since A person obtaining party status will be 502–8659 (TTY); or send a fax to 202– many of the required environmental placed on the service list maintained by 208–2106 with the required studies were not complete as of May 1, the Secretary of the Commission and accommodations. 2017. Great River Hydro indicated that will receive copies (paper or electronic) All interested parties are invited to it would amend the license application of all documents filed by the applicant participate remotely. Staff will use the after completing additional field work, and by all other parties. WebEx platform to view and present consultation, and analyses on the supporting documents related to this required studies. Great River Hydro Tracking the Proceeding docket. For more information, please filed material amendments to the final Throughout the proceeding, contact Brandon Henke at license application on December 7, additional information about the project [email protected] or call 202– 2020. will be available from the Commission’s 502–8386 by January 21, 2021, to l. Project Description: The existing Office of External Affairs, at (866) 208– register and to receive specific Wilder Project consists of: (1) A 1,546- FERC, or on the FERC website at instructions on how to participate in the foot-long, 59-foot-high, concrete dam www.ferc.gov using the eLibrary link as technical conference. that includes: (a) A 400-foot-long non- described above. The eLibrary link also overflow, earthen embankment (north Dated: December 16, 2020. provides access to the texts of all formal embankment); (b) a 232-foot-long non- documents issued by the Commission, Kimberly D. Bose, overflow, concrete bulkhead; (c) a 208- such as orders, notices, and Secretary. foot-long concrete forebay; (d) a 526- rulemakings. [FR Doc. 2020–28234 Filed 12–21–20; 8:45 am] foot-long concrete, gravity spillway that In addition, the Commission offers a BILLING CODE 6717–01–P includes: (i) Six 30-foot-high, 36-foot- free service called eSubscription which long tainter gates; (ii) four 17-foot-high, allows you to keep track of all formal 50-foot-wide stanchion flashboards; (iii) issuances and submittals in specific DEPARTMENT OF ENERGY a 15-foot-high, 20-foot-long skimmer dockets. This can reduce the amount of gate (north gate); and (iv) a 10-foot-high, time you spend researching proceedings Federal Energy Regulatory 10-foot-long skimmer gate (south gate); by automatically providing you with Commission and (e) a 180-foot-long non-overflow, notification of these filings, document [Project No. 1892–030] earthen embankment (south summaries, and direct links to the embankment); (2) a 45-mile-long, 3,100- documents. For more information and to Great River Hydro, LLC; Notice acre impoundment with a useable register, go to www.ferc.gov/docs-filing/ Establishing Procedural Schedule for storage volume of 13,350 acre-feet esubscription.asp. Licensing and Deadline for between elevations 380 and 385 feet Intervention Deadline: 5:00 p.m. Submission of Final Amendments National Geodetic Vertical Datum of Eastern Time on January 6, 2021. 1929 (NGVD 29); (3) four approximately Take notice that the following 25-foot-high, 20-foot-wide trashracks Dated: December 16, 2020. amended hydroelectric application has with 5-inch clear bar spacing and one Kimberly D. Bose, been filed with the Commission and is approximately 28-foot-high, 20-foot- Secretary. available for public inspection. a. Type of Application: New Major wide trashrack with 1.625-inch clear bar [FR Doc. 2020–28250 Filed 12–21–20; 8:45 am] spacing; (4) a 181-foot-long, 50-foot- BILLING CODE 6717–01–P License. b. Project No.: 1892–030. wide, 50-foot-high steel frame, brick c. Date Material Amendments Filed: powerhouse containing two 16.2- DEPARTMENT OF ENERGY December 7, 2020. megawatt (MW) adjustable-blade Kaplan d. Applicant: Great River Hydro, LLC turbine-generator units and one 3.2–MW Federal Energy Regulatory (Great River Hydro). vertical Francis turbine-generator unit Commission e. Name of Project: Wilder for a total project capacity of 35.6 MW; Hydroelectric Project. (5) three concrete draft tubes ranging [Docket No. RP21–144–000] f. Location: The existing project is from 9.5 to 20.5 feet in diameter; (6) 13.8-kilovolt generator leads that Eastern Gas Transmission & Storage, located on the Connecticut River in connect the turbine-generator units to Inc.; Notice of Technical Conference Orange and Windsor Counties, Vermont, and Grafton County, New Hampshire. two substation transformers; (7) an Take notice that a virtual technical There are no federal lands within the approximately 580-foot-long, 6-foot- conference will be held on January 28, project boundary. wide fishway; and (8) appurtenant 2021, at 10:00 a.m. (EST) to discuss g. Filed Pursuant to: Federal Power facilities. comments and protests filed in the Act, 16 U.S.C. 791(a)–825(r). Great River Hydro operates the project proceeding captioned above. h. Applicant Contact: John Ragonese, in coordination with its downstream At the technical conference, the FERC License Manager, Great River Bellows Falls Project No. 1855 and parties to the proceeding should be Hydro, LLC, 40 Pleasant Street, Suite Vernon Project No. 1904 and in a prepared to discuss all issues set for 202, Portsmouth, NH 03801; (603) 498– peaking mode. Average annual technical conference as established in 2851 or [email protected]. generation is approximately 156,303 i. FERC Contact: Steve Kartalia, (202) MW-hours. Great River Hydro is 9 18 CFR 385.214(b)(3) and (d). 502–6131 or [email protected]. proposing changes to project operation

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that would reduce impoundment view and/or print the contents of this assistance, contact FERC at fluctuations and increase the stability of notice, as well as other documents in [email protected] or call downstream flow releases relative to the proceeding (e.g., license application) toll-free, (866) 208–3676 or (202) 502– current project operation, including via the internet through the 8659 (TTY). targeted water surface elevation levels Commission’s Home Page (http:// n. You may also register online at and flow ramping rates. Great River www.ferc.gov) using the ‘‘eLibrary’’ link. https://ferconline.ferc.gov/ Hydro proposes several protection, Enter the docket number excluding the FERCOnline.aspx to be notified via mitigation, and enhancement measures last three digits in the docket number email of new filings and issuances for aquatic, terrestrial, cultural, and field to access the document (P–1892). related to this or other pending projects. recreation resources, and threatened and At this time, the Commission has For assistance, contact FERC Online endangered species. The specific suspended access to the Commission’s Support. proposed changes are described in the amended application. Public Reference Room due to the o. Procedural Schedule: The m. In addition to publishing the full proclamation declaring a National application will be processed according text of this notice in the Federal Emergency concerning the Novel to the following preliminary Hydro Register, the Commission provides all Coronavirus Disease (COVID–19) issued Licensing Schedule. Revisions to the interested persons an opportunity to by the President on March 13, 2020. For schedule may be made as appropriate.

Milestone Target date

Commission issues letter identifying application deficiencies and requesting additional information ...... January 2021. Notice of Acceptance/Notice of Ready for Environmental Analysis ...... May 2021. Filing of recommendations, preliminary terms and conditions, and fishway prescriptions ...... July 2021. Reply Comments due ...... August 2021.

p. Final amendments to the Oregon and Siskiyou County, California. Secretary, Federal Energy Regulatory application must be filed with the The project includes federal lands Commission, 888 First Street NE, Room Commission no later than 30 days from managed by the U.S. Bureau of Land 1A, Washington, DC 20426. the issuance date of the notice of ready Management. Submissions sent via any other carrier for environmental analysis. g. Filed Pursuant to: Federal Power must be addressed to: Kimberly D. Bose, Dated: December 16, 2020. Act, 16 U.S.C. 791a–825r. Secretary, Federal Energy Regulatory h. Applicant Contact: Mark Bransom, Kimberly D. Bose, Commission, 12225 Wilkins Avenue, Chief Executive Officer, Klamath River Rockville, Maryland 20852. The first Secretary. Renewal Corporation, 2001 Addison page of any filing should include docket [FR Doc. 2020–28249 Filed 12–21–20; 8:45 am] Street, Suite 317, Berkeley, CA 94704, numbers P–14803–001 and P–2082–063. BILLING CODE 6717–01–P (415) 820–4441, info@ Comments emailed to Commission staff klamathrenewal.org. Sarah Kamman, are not considered part of the Vice President and General Counsel, Commission record. DEPARTMENT OF ENERGY PacifiCorp, 825 NE Multnomah Street, The Commission’s Rules of Practice Federal Energy Regulatory Suite 2000, Portland, OR 97232, (503) and Procedure require all intervenors Commission 813–5865, sarah.kamman@ filing documents with the Commission pacificorp.com. to serve a copy of that document on [Project Nos. 14803–001; 2082–063] i. FERC Contact: Diana Shannon, each person whose name appears on the (202) 502–6136, diana.shannon@ official service list for the project. PacifiCorp and Klamath River Renewal ferc.gov. Further, if an intervenor files comments Corporation; Notice of Application for j. Deadline for filing comments, or documents with the Commission Surrender of License, Soliciting motions to intervene, and protests: relating to the merits of an issue that Comments, Motions To Intervene, and February 15, 2021. may affect the responsibilities of a Protests The Commission strongly encourages particular resource agency, they must December 16, 2020. electronic filing. Please file comments, also serve a copy of the document on Take notice that the following motions to intervene, and protests using that resource agency. hydroelectric application has been filed the Commission’s eFiling system at k. Description of Request: The with the Commission and is available http://www.ferc.gov/docs-filing/ Klamath River Renewal Corporation for public inspection: efiling.asp. Commenters can submit (Renewal Corporation) and PacifiCorp a. Application Type: Surrender of brief comments up to 6,000 characters, request to surrender the license for and Project License. without prior registration, using the decommission the Lower Klamath b. Project No: 14803–001 and 2082– eComment system at http:// Project No. 14803 (project). 063. www.ferc.gov/docs-filing/ Decommissioning activities would c. Date Filed: September 23, 2016, and ecomment.asp. You must include your include the full removal of the J.C. supplemented June 29, 2018; July 29, name and contact information at the end Boyle, Copco No. 1, Copco No. 2 and 2019; February 28, 2020; and November of your comments. For assistance, Iron Gate dams, located on the 17, 2020. please contact FERC Online Support at mainstem Klamath River in Klamath d. Applicant: PacifiCorp and Klamath [email protected], (866) County, Oregon and Siskiyou County, River Renewal Corporation. 208–3676 (toll free), or (202) 502–8659 California. e. Name of Project: Lower Klamath (TTY). In lieu of electronic filing, you On July 16, 2020, the Commission Hydroelectric Project. may submit a paper copy. Submissions issued an order approving a partial f. Location: The project is located on sent via the U.S. Postal Service must be transfer of the license for the project the Klamath River in Klamath County, addressed to: Kimberly D. Bose, from PacifiCorp to PacifiCorp and the

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Renewal Corporation as co-licensees. In o. Filing and Service of Documents: existing storage operations, all as more the amended surrender application filed Any filing must (1) bear in all capital fully set forth in the application which on November 17, 2020, PacifiCorp and letters the title COMMENTS, PROTEST, is on file with the Commission and open the Renewal Corporation indicated that or MOTION TO INTERVENE as to public inspection. they will not be accepting co-licensee applicable; (2) set forth in the heading The filing is available for review on status. PacifiCorp and the Renewal the name of the applicant and the the Commission’s website web at http:// Corporation state that they intend to file project number of the application to www.ferc.gov using the eLibrary link. a new transfer application by January which the filing responds; (3) furnish Enter the docket number excluding the 16, 2021, requesting that the Lower the name, address, and telephone last three digits in the docket number Klamath Project be transferred from number of the person commenting, field to access the document. For PacifiCorp to the Renewal Corporation protesting or intervening; and (4) assistance, contact FERC at and the states of California and Oregon, otherwise comply with the requirements [email protected] or call for the purposes of license surrender of 18 CFR 385.2001 through 385.2005. toll-free, (866) 208–3676 or TYY, (202) and decommissioning the four All comments, motions to intervene, or 502–8659. At this time, the Commission developments. protests must set forth their evidentiary has suspended access to the Also included in the November 17 basis. Any filing made by an intervenor Commission’s Public Reference Room, filing was a Memorandum of Agreement must be accompanied by proof of due to the proclamation declaring a entered into by PacifiCorp, the Renewal service on all persons listed in the National Emergency concerning the Corporation, the Karuk Tribe, the Yurok service list prepared by the Commission Novel Coronavirus Disease (COVID–19), Tribe, and the states of California and in this proceeding, in accordance with issued by the President on March 13, Oregon indicating the parties’ support 18 CFR 385.2010. 2020. Any questions concerning this for the new transfer proposal to be filed Dated: December 16, 2020. by January 16, 2021. application should be directed to Sorana Kimberly D. Bose, Linder, Director, Modernization & With PacifiCorp’s consent and Secretary. Certificates, Columbia Gas technical support, the Renewal [FR Doc. 2020–28240 Filed 12–21–20; 8:45 am] Transmission, LLC, 700 Louisiana Corporation will act as the proponent of Street, Suite 700, Houston, Texas the surrender application and is BILLING CODE 6717–01–P 77002–2700, at (832) 320–5209 or authorized to act as the Commission’s [email protected]. non-federal representative in ongoing DEPARTMENT OF ENERGY Any person or the Commission’s staff consultations. may, within 60 days after issuance of l. Locations of the Application: This Federal Energy Regulatory the instant notice by the Commission, filing may be viewed on the Commission file pursuant to Rule 214 of the Commission’s website at http:// [Docket No. CP21–17–000] Commission’s Procedural Rules (18 CFR www.ferc.gov using the eLibrary link. 385.214) a motion to intervene or notice Enter the docket number excluding the Columbia Gas Transmission, LLC; of intervention and pursuant to section last three digits in the docket number Notice of Request Under Blanket 157.205 of the regulations under the field to access the document. You may Authorization NGA (18 CFR 157.205), a protest to the also register online at http:// request. If no protest is filed within the www.ferc.gov/docs-filing/ Take notice that on December 11, time allowed therefore, the proposed esubscription.asp to be notified via 2020, Columbia Gas Transmission, LLC, activity shall be deemed to be email of new filings and issuances 700 Louisiana Street, Houston, Texas authorized effective the day after the related to this or other pending projects. 77002–2700, filed in Docket No. CP21– time allowed for filing a protest. If a For assistance, call 1–866–208–3676 or 17–000 a prior notice request pursuant protest is filed and not withdrawn email [email protected], for to section 157.205 and 157.216 of the within 30 days after the allowed time TTY, call (202) 502–8659. Agencies may Commission’s regulations under the for filing a protest, the instant request obtain copies of the application directly Natural Gas Act, for authorization to shall be treated as an application for from the applicant. abandon 9 injection/withdrawal wells authorization pursuant to section 7 of m. Individuals desiring to be included and associated pipelines and the NGA. on the Commission’s mailing list should appurtenances, located in its Wellington Pursuant to section 157.9 of the so indicate by writing to the Secretary Storage Field in Lorain and Medina Commission’s rules, 18 CFR 157.9, of the Commission. Counties, Ohio (2021 Wellington Well within 90 days of this Notice the n. Comments, Protests, or Motions to Abandonments Project). Commission staff will either: Complete Intervene: Anyone may submit Specifically, Columbia proposes to its environmental assessment (EA) and comments, a protest, or a motion to plug and abandon wells 7779, 8907, place it into the Commission’s public intervene in accordance with the 8908, 8909, 8968, 9060, 9031, 9121, and record (eLibrary) for this proceeding; or requirements of Rules of Practice and 9309, and their associated pipelines. issue a Notice of Schedule for Procedure, 18 CFR 385.210, .211, .214, Columbia asserts that plugging and Environmental Review. If a Notice of respectively. In determining the abandoning these wells will reduce Schedule for Environmental Review is appropriate action to take, the integrity risk in alignment with the issued, it will indicate, among other Commission will consider all protests or PHMSA Storage Final Rule. Columbia milestones, the anticipated date for the other comments filed, but only those states that there will be no change to the Commission staff’s issuance of the EA who file a motion to intervene in existing boundary, total inventory, for this proposal. The filing of the EA accordance with the Commission’s reservoir pressure, reservoir and buffer in the Commission’s public record for Rules may become a party to the boundaries, or the certificated capacity this proceeding or the issuance of a proceeding. Any comments, protests, or of the Wellington Storage Field as a Notice of Schedule for Environmental motions to intervene must be received result of these abandonments, therefore Review will serve to notify federal and on or before the specified comment date will have no impact on Columbia’s state agencies of the timing for the for the particular application. existing customers or affect Columbia’s completion of all necessary reviews, and

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the subsequent need to complete all consideration of comments submitted (d) a Memorandum of Agreement with federal authorizations within 90 days of on the package by the U.S. Fish and the EPA Regional Administrator, as set the date of issuance of the Commission Wildlife Service (USFWS), the National forth in 40 CFR 233.13; (e) a staff’s EA. Marine Fisheries Service (NMFS), and Memorandum of Agreement with the Persons who wish to comment only the U.S. Army Corps of Engineers Secretary of the Army, as set forth in 40 on the environmental review of this (Corps), comments received during CFR 233.14; and (f) copies of all project should submit an original and consultation with tribes, and over 3,000 applicable state statutes and regulations, two copies of their comments to the comments received from the public, including those governing applicable Secretary of the Commission. EPA has determined that the State of state administrative procedures. 40 CFR Environmental commenter’s will be Florida has the necessary authority to 233.10. placed on the Commission’s operate a CWA Section 404 program in On September 16, 2020, EPA environmental mailing list and will be accordance with the requirements found published a Federal Register notice of notified of any meetings associated with in CWA section 404(g–l) and EPA’s its receipt of a complete program the Commission’s environmental review implementing regulations. Therefore, process. Environmental commenter’s EPA has taken final action to approve assumption request package (85 FR will not be required to serve copies of Florida’s assumption of the program. 57853), opened a public comment period, and scheduled two virtual filed documents on all other parties. DATES: Florida’s program assumption public hearings on the Section 404 However, the non-party commenters, will be applicable December 22, 2020. program submitted by Florida. EPA held will not receive copies of all documents FOR FURTHER INFORMATION CONTACT: Mr. filed by other parties or issued by the virtual public hearings on October 21, Kelly Laycock, Oceans, Wetlands and 2020, and October 27, 2020, and Commission and will not have the right Streams Protection Branch, USEPA to seek court review of the received comments submitted to Docket Region 4, 61 Forsyth St. SW, Atlanta, ID No. EPA–HQ–OW–2018–0640 during Commission’s final order. GA 30303; telephone number: (404) the public comment period which The Commission strongly encourages 562–9262; email address: ended November 2, 2020. EPA received electronic filings of comments, protests [email protected]. and interventions in lieu of paper using and reviewed over 3,000 comments SUPPLEMENTARY INFORMATION: The CWA the eFile link at http://www.ferc.gov. submitted during the comment period established the Section 404 program, Persons unable to file electronically may and public hearings, comments under which the Secretary of the Army, mail similar pleadings to the Federal provided during tribal consultation, as acting through the Chief of Engineers of Energy Regulatory Commission, 888 well as comments from USFWS, NMFS, the Corps, may issue permits for the First Street NE, Washington, DC 20426. and the Corps. EPA also consulted discharge of dredged or fill material into Submissions sent via any other carrier under section 7 of the Endangered waters of the United States as identified must be addressed to: Kimberly D. Bose, Species Act with the USFWS, and under in the CWA. Section 404(g)(1) of the Secretary, Federal Energy Regulatory section 106 of the National Historic CWA provides states and tribes the Commission, 12225 Wilkins Avenue, Preservation Act (NHPA) with the option of submitting to EPA a request to Rockville, Maryland 20852. Advisory Council on Historic assume administration of a CWA Preservation (ACHP), the Florida State Dated: December 16, 2020. Section 404 program in certain waters Historic Preservation Officer (Florida Kimberly D. Bose, within state or tribal jurisdiction. SHPO), the Florida Department of Secretary. The regulations establishing the requirements for the approval of state or Environmental Protection (FDEP), and [FR Doc. 2020–28248 Filed 12–21–20; 8:45 am] Indian tribes with interests in the State BILLING CODE 6717–01–P tribal programs under section 404 of the CWA were published in the Federal of Florida on its decision whether to Register at 53 FR 20764 (June 6, 1988) approve Florida’s program request. On (40 CFR parts 232 and 233), and can be December 16, 2020, EPA entered into a ENVIRONMENTAL PROTECTION programmatic agreement with the AGENCY accessed at https://www.epa.gov/ cwa404g/statutory-and-regulatory- ACHP, the Florida SHPO, and FDEP [EPA–HQ–OW–2018–0640; FRL–10018–92– requirements-assumption-under-cwa- which evidences EPA’s compliance Region 4] section-404. ‘‘State regulated waters’’ with section 106 of the NHPA and its are defined in 40 CFR 232.2. implementing regulations. The EPA’s Approval of Florida’s Clean The Corps generally retains CWA programmatic agreement became Water Act Section 404 Assumption Section 404 permitting authority over effective on December 16, 2020. EPA Request waters of the United States within has concluded that the State of Florida AGENCY: Environmental Protection ‘‘Indian country’’ as that term is defined and FDEP have the necessary authority Agency. at 18 U.S.C. 1151, unless a tribe has to operate a program in accordance with the requirements found in CWA section ACTION: Notice. assumed administration of a CWA Section 404 program within Indian 404 and 40 CFR part 233. EPA has met SUMMARY: On August 20, 2020, the country. See 40 CFR 233.1(b). its requirements under ESA section Environmental Protection Agency (EPA) A state application to administer a 7(a)(2) by completing ESA consultation received from the Governor of the State Section 404 program must include the and receiving a ‘‘no jeopardy’’ of Florida a complete program following: (a) A letter from the Governor Biological Opinion from the USFWS on submission to assume regulating of the state requesting program November 17, 2020. A summary of the discharges of dredged or fill material approval; (b) a complete program comments received, EPA’s responses to into waters within the jurisdiction of the description as set forth in 40 CFR the comments, and a memorandum State in accordance with Clean Water 233.11; (c) an Attorney General’s documenting the basis for EPA’s Act (CWA) section 404(g–l). Receipt of statement or a statement from the decision (‘‘State of Florida’s Request to the package initiated a 120-day statutory attorney for those state or interstate Assume a Clean Water Act Section 404 review period. After careful review of agencies which have independent legal Program’’, December 17, 2020) can be the package submitted, as well as counsel, as set forth in 40 CFR 233.12; found in the docket for this action

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(Docket ID No. EPA–HQ–OW–2018– December 19, 2019. Section 7361 of the transmitting COVID–19. Our Docket 0640). FY 2020 NDAA directs the U.S. Center staff will continue to provide All documents in the docket are listed Environmental Protection Agency (EPA) remote customer service via email, on the http://www.regulations.gov to publish interim guidance on the phone, and webform. We encourage the website. Although listed in the index, destruction and disposal of public to submit comments via https:// some information is not publicly perfluoroalkyl and polyfluoroalkyl www.regulations.gov/, as there may be a available, e.g., confidential business substances (PFAS) and materials delay in processing mail and faxes. information or other information whose containing PFAS. The EPA is releasing Hand deliveries and couriers may be disclosure is restricted by statute. the interim guidance for public received by scheduled appointment Certain other material, such as comment. The guidance provides only. For further information on EPA copyrighted material, is not placed on information on technologies that may be Docket Center services and the current the internet and will be publicly feasible and appropriate for the status, please visit us online at https:// available only in hard copy form at the destruction or disposal of PFAS and www.epa.gov/dockets. EPA Docket Center and Reading Room. PFAS-containing materials. It also FOR FURTHER INFORMATION CONTACT: Out of an abundance of caution for identifies needed and ongoing research Carlos Pachon, TIFSD, OSRTI, OLEM, members of the public and our staff, the and development activities related to 5023P, Environmental Protection EPA Docket Center and Reading Room destruction and disposal technologies, Agency, 1200 Pennsylvania Ave. NW; are open by appointment only, to reduce which may inform future guidance. email address, [email protected] the risk of transmitting COVID–19. Our DATES: Comments must be received on or visit www.epa.gov/pfas. Docket Center staff will continue to or February 22, 2021. SUPPLEMENTARY INFORMATION: provide remote customer service via ADDRESSES: You may send comments, email, phone, and webform. For further identified by Docket ID No EPA–HQ– I. General Information information on the EPA Docket Center OLEM–2020–0527, by any of the A. Does this action apply to Me? services and the current status, please following methods: visit us online at https://www.epa.gov/ • Federal eRulemaking Portal: This interim guidance provides a dockets. Publicly available docket https://www.regulations.gov/ (our summary of EPA’s current knowledge of materials are available electronically preferred method). Follow the online technologies for destruction or disposal through http://www.regulations.gov. instructions for submitting comments. of PFAS and PFAS-containing materials. This information may be useful to EPA Dated: December 17, 2020. • Agency website: www.epa.gov/pfas. Follow the online instructions for staff, other federal agencies, states, Mary Walker, tribes, and local governments, the Regional Administrator, EPA Region 4. submitting comments. • Mail: U.S. Environmental public, including environmental and [FR Doc. 2020–28232 Filed 12–18–20; 4:15 pm] Protection Agency, EPA Docket Center, public interest groups, as well as BILLING CODE 6560–50–P OLEM Docket, Mail Code 28221T, 1200 commercial and industry groups. Pennsylvania Avenue NW, Washington, Peter Wright, DC 20460. ENVIRONMENTAL PROTECTION Assistant Administrator, Office of Land and • Hand Delivery/Courier: EPA Docket AGENCY Emergency Management. Center, WJC West Building, Room 3334, [FR Doc. 2020–28376 Filed 12–18–20; 4:15 pm] [EPA–HQ–OLEM–2020–0527; FRL–10017– 1301 Constitution Avenue NW, 07–OLEM] Washington, DC 20004. The Docket BILLING CODE 6560–50–P Center’s hours of operations are 8:30 RIN 2050–ZA18 a.m.–4:30 p.m., Monday–Friday (except Interim PFAS Destruction and Disposal Federal Holidays). FEDERAL DEPOSIT INSURANCE Instructions: All submissions received Guidance; Notice of Availability for CORPORATION Public Comment must include the Docket ID No. for this rulemaking. Comments received may be Notice to All Interested Parties of AGENCY: Environmental Protection posted without change to https:// Intent To Terminate Receiverships Agency (EPA). www.regulations.gov/, including any ACTION: Notice of availability for public personal information provided. Notice is hereby given that the Federal comment. Out of an abundance of caution for Deposit Insurance Corporation (FDIC or members of the public and our staff, the Receiver), as Receiver for the SUMMARY: The National Defense EPA Docket Center and Reading Room institutions listed below, intends to Authorization Act for Fiscal Year 2020 are closed to the public, with limited terminate its receivership for said (FY 2020 NDAA) was signed into law on exceptions, to reduce the risk of institutions.

NOTICE OF INTENT TO TERMINATE RECEIVERSHIPS

Date of Fund Receivership name City State appointment of receiver

10109 ..... Bradford Bank ...... Baltimore ...... MD 08/28/2009 10110 ..... Affinity Bank ...... Ventura ...... CA 08/28/2009 10156 ..... Greater Atlantic Bank ...... Reston ...... VA 12/04/2009 10184 ..... George Washington Savings Bank ...... Orland Park ...... IL 02/19/2010 10192 ..... Sun American Bank ...... Boca Raton ...... FL 03/05/2010 10250 ..... Nevada Security Bank ...... Reno ...... NV 06/18/2010 10254 ..... USA Bank ...... Port Chester ...... NY 07/09/2010 10263 ..... First National Bank of the South ...... Spartanburg ...... SC 07/16/2010 10419 ..... The First State Bank ...... Stockbridge ...... GA 01/20/2012

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NOTICE OF INTENT TO TERMINATE RECEIVERSHIPS—Continued

Date of Fund Receivership name City State appointment of receiver

10195 ..... The Park Avenue Bank ...... New York ...... NY 03/12/2010 10217 ..... Tamalpais Bank ...... San Rafael ...... CA 04/16/2010 10312 ..... Darby Bank and Trust Company ...... Vidalia ...... GA 11/12/2010 10525 ..... Proficio Bank ...... Cottonwood Heights .. UT 03/03/2017 10533 ..... Resolute Bank ...... Maumee ...... OH 10/25/2019

The liquidation of the assets for each The revisions to the FR 2915 are Agency form number: FR 2900 and FR receivership has been completed. To the applicable for the report as-of-date June 2915. extent permitted by available funds and 21, 2021. The quarterly collection of the OMB control number: 7100–0087. in accordance with law, the Receiver FR 2900 and the FR 2910a are Effective dates: FR 2900 (weekly): will be making a final dividend discontinued as of January 1, 2021. The April 12, 2021; FR 2900 (quarterly): payment to proven creditors. final quarterly submission of the FR January 1, 2021; FR 2910a: January 1, Based upon the foregoing, the 2900 is for the as-of-date December 21, 2021; FR 2915: June 21, 2021; FR 2930: Receiver has determined that the 2020, while the last FR 2910a was January 31, 2021. continued existence of the receiverships submitted on June 30, 2020. The FR Frequency: Quarterly and weekly. will serve no useful purpose. 2930 is also being discontinued, Respondents: Depository institutions. Estimated number of respondents: FR Consequently, notice is given that the effective January 31, 2021; the last filing 2900: 1,000; FR 2915: 116. receiverships shall be terminated, to be of this report is for January 14, 2021. effective no sooner than thirty days after Estimated average hours per response: FOR FURTHER INFORMATION CONTACT: the date of this notice. If any person FR 2900: 1.0; FR 2915: 0.5. wishes to comment concerning the Federal Reserve Board Clearance Estimated annual burden hours: FR termination of any of the receiverships, Officer—Nuha Elmaghrabi—Office of 2900: 52,000; FR 2915: 232. General description of report: Data such comment must be made in writing, the Chief Data Officer, Board of from these mandatory reports are used identify the receivership to which the Governors of the Federal Reserve by the Board to support the calculation comment pertains, and be sent within System, Washington, DC 20551, (202) and analysis of the U.S. monetary thirty days of the date of this notice to: 452–3829. aggregates and to meet the Board’s Federal Deposit Insurance Corporation, Office of Management and Budget obligations under Section 19(b) of the Division of Resolutions and (OMB) Desk Officer—Shagufta Ahmed— Federal Reserve Act to index key Receiverships, Attention: Receivership Office of Information and Regulatory thresholds used in the calculation of Oversight Department 34.6, 1601 Bryan Affairs, Office of Management and reserve requirements. The FR 2900 is Street, Dallas, TX 75201. Budget, New Executive Office Building, No comments concerning the Room 10235, 725 17th Street NW, the primary source of data for the construction and analysis of the termination of the above-mentioned Washington, DC 20503, or by fax to monetary aggregates and was used until receiverships will be considered which (202) 395–6974. recently for the calculation of reserve are not sent within this time frame. SUPPLEMENTARY INFORMATION: On June requirements. FR 2900 respondents that Authority: 12 U.S.C. 1819. 15, 1984, OMB delegated to the Board offer deposits denominated in foreign Federal Deposit Insurance Corporation. authority under the PRA to approve and currencies at their U.S. offices file the Dated at Washington, DC, on December 16, assign OMB control numbers to FR 2915. Foreign currency deposits are 2020. collections of information conducted or not included in the monetary aggregates, James P. Sheesley, sponsored by the Board. Board- and the FR 2915 data are used to net Assistant Executive Secretary. approved collections of information are foreign currency-denominated deposits incorporated into the official OMB from the FR 2900 data to exclude them [FR Doc. 2020–28134 Filed 12–21–20; 8:45 am] inventory of currently approved BILLING CODE 6714–01–P from measures of the monetary collections of information. The OMB aggregates. inventory, as well as copies of the PRA Legal authorization and Submission, supporting statements, and confidentiality: The FR 2900 and FR FEDERAL RESERVE SYSTEM approved collection of information 2915 reports are authorized to be Agency Information Collection instrument(s) are available at https:// collected from depository institutions Activities: Announcement of Board www.reginfo.gov/public/do/PRAMain. (commercial banks, credit unions, and Approval Under Delegated Authority These documents are also available on savings and loan associations) pursuant and Submission to OMB the Federal Reserve Board’s public to section 11(a)(2) of the Federal Reserve website at https:// Act (FRA); from agreement corporations AGENCY: Board of Governors of the www.federalreserve.gov/apps/ pursuant to sections 25(5) and (7) and Federal Reserve System. reportforms/review.aspx or may be section 604a of the FRA; from banking SUMMARY: The Board of Governors of the requested from the agency clearance Edge corporations pursuant to section Federal Reserve System (Board) is officer, whose name appears above. 25A(17) of the FRA; and from branches adopting a proposal to extend for three Final Approval Under OMB Delegated and agencies of foreign banks pursuant years, with revision, the Reports of Authority of the Extension for Three to section 7 of the International Banking Deposits (FR 2900, FR 2915; OMB No. Years, With Revision, of the Following Act. The FR 2900 and FR 2915 reports 7100–0087). The revisions to the weekly Information Collection are mandatory. collection of the FR 2900 are effective The data collected under the FR 2900 for the report as-of-date April 12, 2021. Report title: Reports of Deposits. and FR 2915 reports are considered

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confidential commercial and financial A.1.c to ‘‘A.1, Demand deposits due to explaining movements in data, which information, and respondents are the public (excluding demand deposits the commenter noted can be very assured that the data being collected due to depository institutions and burdensome. The Board continues to will be treated as confidential by the demand deposits due to the U.S. expect Federal Reserve System staff to Federal Reserve (except that aggregate government).’’ work with reporters to explain data, which does not identify any The third depository institution movements in data and submit revisions individual institution, may be requested clarification of the effective if necessary to ensure data quality while disclosed). Accordingly, the data date of the proposed changes. The remaining sensitive to minimizing such effective dates of the proposed changes collected on these reports is considered requests where feasible. confidential pursuant to exemption 4 of vary by report form and are detailed the Freedom of Information Act, which above and in the Proposed Revisions The fifth and final comment was from protects confidential commercial or section of the Supporting Statement for a U.S. government agency. The agency financial information from public the Reports of Deposits that raised concerns that the elimination of disclosure. accompanied the Board’s request for total transaction accounts, deductions Current actions: On September 2, public comment. from transaction accounts, and 2020, the Board published a notice in The fourth comment letter was from ineligible acceptances and obligations the Federal Register (85 FR 54577) a trade association. The commenter issued by affiliates and maturing in requesting public comment for 60 days provided one suggestion and made four seven days from the FR 2900 would on the extension, with revision, of the requests for clarification on the affect their data production. These Report of Deposits. The notice proposed proposal. The commenter suggested the concerns have been addressed. discontinuing the collection of the FR Board do more to align items reported 2910a and FR 2930, ceasing the on the FR 2900, FR Y–9C, and FR 2886b The Board has also considered the quarterly collection of the FR 2900, and reports, as well as on the Call Reports, continued collection of FR 2900 reports refocusing items on the weekly to reduce burden on reporters. In the from bankers’ banks and corporate collection of the FR 2900 and the development of the proposal, the Board credit unions (CCUs).1 Data reported on quarterly collection of the FR 2915 to evaluated the interaction of the the FR 2900 by bankers’ banks and those that support the construction and proposed changes to the FR 2900 with CCUs have historically been used to analysis of the monetary aggregates. The other report forms. The Board did not administer reserve requirements, but not comment period for this notice expired find it appropriate, however, to for the construction of the monetary on November 2, 2020. The Board continue to collect items on the FR 2900 aggregates. The monetary aggregates received five comments. that are no longer needed for the Board’s measure money in the hands of the purposes, even if discontinuing those nonbank public in the United States. Detailed Discussion of Public items led to some lack of alignment with Comments Deposits at bankers’ banks and CCUs other report forms, such as the Call represent funds of depository Of the five comments, three were from Report. The same commenter also asked institutions and not nonbank depositors, depository institutions, one was from a the Board to amend the FR 2900 and therefore data regarding these trade association, and one was from a instructions to include guidance on how deposits have historically been federal agency. The public comments to report retail sweep arrangements. The excluded from construction of the sought clarification of the proposed final version of the FR 2900 instructions monetary aggregates. As noted above, all changes, which the Board has addressed includes such guidance. The commenter below and, in some cases, through also requested that the Board specify reserve requirement ratios have been set amendments to the FR 2900 instructions whether personal or nonpersonal to zero percent since March 2020. described below. ineligible acceptances and obligations Because FR 2900 report data from One depository institution asked for issued by affiliates and maturing in bankers’ banks and CCUs will not be more information on the reporting more than seven days should be used for either administration of reserve requirements for U.S. branches and included on the proposed annual item requirements or construction of the agencies of foreign banks. As noted in E.1 Reservable Liabilities. The monetary aggregates, the Board has the proposal, the Board plans to instructions have been amended to determined to discontinue collecting FR maintain its current practice of specify that only the nonpersonal 2900 reports from these institutions.2 requiring banking Edge and agreement portion of ineligible acceptances and Board of Governors of the Federal Reserve corporations and U.S. branches and obligations issued by affiliates and System, December 17, 2020. agencies of foreign banks to report maturing in more than seven days weekly on the FR 2900, regardless of should be included. The commenter Michele Taylor Fennell, size, because the deposit flows of these also sought confirmation on the Deputy Associate Secretary of the Board. institutions are large enough and treatment of savings deposits in [FR Doc. 2020–28218 Filed 12–21–20; 8:45 am] different enough from those of other Regulation CC (Availability of Funds BILLING CODE 6210–01–P depository institutions that weekly and Collection of Checks, 12 CFR part reporting of data is needed to support 229) as a result of the recent the construction of monetary aggregates. amendments to Regulation D. Because 1 Currently, nine bankers’ banks and eleven Another depository institution Regulation CC continues to exclude corporate credit unions submit FR 2900 reports requested clarification on the proposal’s accounts described in 12 CFR weekly, and three bankers’ banks submit the FR treatment of the reporting of demand 204.2(d)(2) from the Regulation CC 2900 quarterly. The revisions to this information deposit items: A.1.a, demand deposits ‘‘account’’ definition, the recent collection, as originally proposed, would likely due to depository institutions; A.1.b, amendments to Regulation D did not affect four of these institutions and these institutions would be required to submit FR 2900 demand deposits due to the U.S. result in savings deposits (accounts reports weekly. government; and A.1.c, demand described in 12 CFR 204.2(d)(2)) being 2 The last report as-of-date for bankers’ banks and deposits due to other. The Board will covered by Regulation CC. Lastly, the CCUs that file the FR 2900 weekly is April 5, 2021; discontinue collecting items A.1.a and commenter requested that the Board for FR 2900 quarterly filers, the last report as-of- A.1.b, and will renumber and rename clarify its expectations of reporters for date is December 21, 2020.

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FEDERAL RESERVE SYSTEM FEDERAL RESERVE SYSTEM further assessment of the business and risk profiles of the U.S. operations of Change in Bank Control Notices; [Docket No. OP–1699] large and complex FBOs. Acquisitions of Shares of a Bank or FEDERAL DEPOSIT INSURANCE DATES: The final guidance is available Bank Holding Company CORPORATION on December 22, 2020. FOR FURTHER INFORMATION CONTACT: The notificants listed below have RIN 3064–ZA15 Board: Mona Elliot, Deputy Associate applied under the Change in Bank Director, (202) 452–4688, Catherine Guidance for Resolution Plan Control Act (Act) (12 U.S.C. 1817(j)) and Tilford, Deputy Associate Director, (202) Submissions of Certain Foreign-Based § 225.41 of the Board’s Regulation Y (12 452–5240, Division of Supervision and Covered Companies CFR 225.41) to acquire shares of a bank Regulation, Laurie Schaffer, Deputy or bank holding company. The factors AGENCY: Board of Governors of the General Counsel, (202) 452–2272, Jay that are considered in acting on the Federal Reserve System (Board) and Schwarz, Special Counsel, (202) 452– applications are set forth in paragraph 7 Federal Deposit Insurance Corporation 2970, Steve Bowne, Senior Counsel, of the Act (12 U.S.C. 1817(j)(7)). (FDIC). (202) 452–3900, or Sarah Podrygula, Attorney, (202) 912–4658, Legal The public portions of the ACTION: Final guidance. Division; Board of Governors of the applications listed below, as well as SUMMARY: The Board and the FDIC Federal Reserve System, 20th and C other related filings required by the (together, the agencies) are adopting this Streets NW, Washington, DC 20551. Board, if any, are available for final guidance for the 2021 and FDIC: Alexandra Steinberg Barrage, immediate inspection at the Federal subsequent resolution plan submissions Associate Director, Policy and Data Reserve Bank(s) indicated below and at by certain foreign banking organizations Analytics, [email protected]; Yan the offices of the Board of Governors. (FBOs). The final guidance is meant to Zhou, Acting Associate Director, Data This information may also be obtained assist these firms in developing their Analytics, [email protected]; Catherine on an expedited basis, upon request, by resolution plans, which are required to Needham, Advisor, [email protected]; contacting the appropriate Federal be submitted pursuant to Section 165(d) Ronald W. Crawley, Jr., Senior Reserve Bank and from the Board’s of the Dodd-Frank Wall Street Reform Resolution Policy Specialist, rcrawley@ Freedom of Information Office at and Consumer Protection Act (Dodd- fdic.gov, Division of Complex https://www.federalreserve.gov/foia/ Frank Act). The final guidance reflects Institution Supervision and Resolution; request.htm. Interested persons may a number of changes to the proposal in David N. Wall, Assistant General express their views in writing on the response to comments received by the Counsel, [email protected]; Celia Van standards enumerated in paragraph 7 of agencies and further analysis by the Gorder, Senior Counsel, 202–898–6749, the Act. agencies. The scope of application of the [email protected]; or Esther Rabin, Counsel, [email protected], Legal Comments regarding each of these final guidance is FBOs that are Category Division, Federal Deposit Insurance applications must be received at the II firms according to their combined U.S. operations under the Board’s Corporation, 550 17th Street NW, Reserve Bank indicated or the offices of tailoring ruleand are required to have a Washington, DC 20429. the Board of Governors, Ann E. U.S. intermediate holding company SUPPLEMENTARY INFORMATION: Misback, Secretary of the Board, 20th (IHC) under the Board’s Regulation YY Table of Contents Street and Constitution Avenue NW, (the Specified FBOs) as published in 84 Washington, DC 20551–0001, not later FR 59032 (November 1, 2019). In I. Introduction than January 6, 2021. addition to the three firms(Barclays a. Background A. Federal Reserve Bank of St. Louis PLC, Credit Suisse Group AG, and b. Proposed Guidance (David L. Hubbard, Senior Manager) Deutsche Bank AG (the Proposed FBOs) II. Overview of Comments III. Final Guidance P.O. Box 442, St. Louis, Missouri that would have been within the scope a. Scope of Application 63166–2034. Comments can also be sent of application under the methodology b. Transition Period electronically to utilized in the proposal, one additional c. Consolidation of Prior Guidance and [email protected]: firm, Mitsubishi UFJ Financial Group, Format and Structure of Plans Inc. (MUFG), is within the scope for d. Capital and Liquidity 1. Charles Taff Cross and John Fuller application of the final guidance at the e. Governance Mechanisms Cross, Jr., both of Eureka Springs, time of its issuance. Consequently, f. Operational Arkansas; to acquire additional voting MUFG will have a transition period to g. Branches shares of Eureka Bancshares, Inc., and consider the application of the final h. Group Resolution Plan thereby indirectly acquire voting shares i. Legal Entity Rationalization and guidance to its resolution plan Separability of CS Bank (fka Cornerstone Bank), all submission, as further described below. of Eureka Springs, Arkansas. j. Derivatives and Trading Activities The final guidance describes the k. Additional Comments Board of Governors of the Federal Reserve agencies’ expectations regarding a IV. Paperwork Reduction Act System, December 17, 2020. number of key vulnerabilities in plans V. Final Guidance for an orderly resolution under the U.S. Michele Taylor Fennell, I. Introduction Bankruptcy Code (i.e., capital, liquidity, Deputy Associate Secretary of the Board. governance mechanisms, operational, a. Background [FR Doc. 2020–28186 Filed 12–21–20; 8:45 am] branches, legal entity rationalization, BILLING CODE 6210–01–P Section 165(d) of the Dodd-Frank and derivatives and trading activities). Act 1 and the jointly issued The final guidance modifies and implementing regulation (the Rule) 2 clarifies certain aspects of the proposed guidance based on the agencies’ 1 12 U.S.C. 5365(d). consideration of comments to the 2 12 CFR part 243 and 12 CFR part 381, as proposal, additional analysis, and amended.

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require certain financial companies, address those issues. For FBOs, the guidance and the feedback letters were including certain foreign-based firms, to resolution planning process focuses on made available to the public. report periodically to the agencies their their U.S. subsidiaries and operations. Several developments inform the final plans for rapid and orderly resolution The agencies recognize that the guidance: • under the U.S. Bankruptcy Code (the preferred resolution outcome for many The agencies’ consideration of Bankruptcy Code) in the event of FBOs is a successful home country comments to the proposed guidance (as material financial distress or failure. resolution using a single point of entry defined below); 3 • With respect to a covered company (SPOE) resolution strategy where U.S. The agencies’ review of certain that is organized or incorporated in a material entities are provided with FBOs’ 2018 resolution plans and the jurisdiction other than the United States sufficient capital and liquidity resources issuance of individual letters (other than a bank holding company) or to allow them to stay out of resolution communicating the agencies’ views on that is an FBO, the Rule requires that proceedings and maintain continuity of and shortcomings contained in the 2018 the firm’s U.S. resolution plan include operations throughout the parent’s resolution plans filed by the firms specified information with respect to resolution. However, because support subject to the 2018 FBO guidance (2018 the subsidiaries, branches, and agencies, feedback letters); 11 from the foreign parent in stress cannot • and identified critical operations and be ensured, the Rule provides that the Revisions to the content related to core business lines, as applicable, that U.S. resolution plan for foreign-based payment, clearing, and settlement (PCS) are domiciled in the United States or covered companies should specifically activities and derivatives and trading conducted in whole or material part in activities in the updated guidance for 4 address a scenario where the U.S. the United States. The Rule also operations experience material financial the resolution plan submissions by the requires, among other things, each distress, and the plan should not eight largest, most complex U.S. covered company’s full resolution plan assume that the covered company takes banking organizations in February 2019 to include a strategic analysis of the 12 resolution actions outside the United (2019 domestic guidance); plan’s components, a description of the • States that would eliminate the need for The 2019 amendments to the Rule range of specific actions the covered any U.S. subsidiaries to enter resolution (2019 Rule revisions), which included company proposes to take in resolution, proceedings.7 Nonetheless, the Rule also the clarification that FBOs should not and a description of the covered provides firms with appropriate assume that its foreign parent company company’s organizational structure, flexibility to construct a U.S. resolution takes resolution actions outside of the material entities, and interconnections strategy in a way that is not inconsistent United States that would eliminate the and interdependencies.5 In addition, the with a firm’s global resolution strategy, need for any U.S. subsidiaries to enter Rule requires that all resolution plans 13 as long as assumptions consistent with into resolution proceedings; and include a confidential section that • An analysis of the current risk contains any confidential supervisory the firm’s global strategy support the firm’s U.S. resolution strategy and profiles of the large, complex FBOs and proprietary information submitted subject to resolution planning to the agencies as part of the resolution adhere to the required and prohibited assumptions articulated in the Rule. requirements. plan and a separate section that the The preamble to the 2019 Rule agencies make available to the public. Recent Developments revisions indicated that the agencies Public sections of resolution plans can would make any future resolution 6 Implementation of the Rule has been be found on the agencies’ websites. guidance available for comment,14 and an iterative process aimed at in March 2020 the agencies invited Objectives of the Resolution Planning strengthening the resolution planning comments on proposed guidance for the Process capabilities of financial institutions 2021 and subsequent resolution plan subject to the Rule. The final guidance The goal of the Dodd-Frank Act submissions by certain FBOs (proposed resolution planning process is to help is based on the Guidance for 2018 guidance).15 ensure that a covered company’s failure § 165(d) Annual Resolution Plan Under the 2019 Rule revisions, each would not have serious adverse effects Submissions By Foreign-based Covered Specified FBO will be a triennial full on financial stability in the United Companies that Submitted Resolution filer and will be required to submit a States. Specifically, the resolution Plans in July 2015 (2018 FBO resolution plan every three years, planning process requires covered guidance).8 The 2018 FBO guidance was alternating between a full resolution companies to demonstrate that they 9 provided to four FBOs. The agencies plan and a targeted resolution plan. The have adequately assessed the challenges also have previously provided feedback 2019 Rule revisions require all triennial that their structures and business on several occasions to the four FBOs full filers to submit a targeted resolution activities pose to an orderly resolution that at present are in scope for the final plan on or before July 1, 2021, followed and that they have taken action to 10 guidance. In general, the guidance and by a full resolution plan in 2024. In feedback were intended to assist the 3 The terms ‘‘covered company,’’ ‘‘material addition, the agencies indicated in the recipients in their development of 2019 Rule revisions that they would entities,’’ ‘‘identified critical operations,’’ ‘‘core future resolution plan submissions and business lines,’’ and similar terms used throughout strive to provide final general guidance this guidance all have the same meaning as in the to provide additional clarity with at least a year before the next resolution Rule. See generally 12 CFR 243.2; 12 CFR 381.2. respect to the agencies’ expectations for 4 12 CFR 243.5(a)(2)(i); 12 CFR 381.5(a)(2)(i). the filers’ future progress. The 2018 FBO 11 Available at www.federalreserve.gov/ 5 Under the Rule, all filers must submit a full newsevents/pressreleases/bcreg20181220c.htm. resolution plan, either every other time a resolution 7 12 plan submission is required or as a firm’s initial 12 CFR 243.4(h)(3); 12 CFR 381.4(h)(3). Final Guidance for the 2019, 84 FR 1438 resolution plan submission. See 12 CFR 243.4(a)(5)– 8 Available at www.federalreserve.gov/ (February 4, 2019). (6), (b)(4)–(5), and (c)(4)–(5); 12 CFR 381.4(a)(5)–(6), newsevents/pressreleases/files/ 13 Resolution Plans Required, 84 FR 59194 (b)(4)–(5), and (c)(4)–(5). bcreg20170324a21.pdf and www.fdic.gov/ (November 1, 2019). The amendments became 6 The public sections of resolution plans resauthority/2018subguidance.pdf. effective on December 31, 2019. submitted to the agencies are available at https:// 9 Barclays PLC, Credit Suisse Group AG, Deutsche 14 84 FR 59204. www.federalreserve.gov/supervisionreg/resolution- Bank AG, and UBS AG. 15 Guidance for Resolution Plan Submissions of plans.htm and www.fdic.gov/regulations/reform/ 10 See infra Section III.c (Consolidation of Prior Certain Foreign-Based Covered Companies, 85 FR resplans/. Guidance). 15449 (March 18, 2020).

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plan submission date of firms to which country resolution capabilities of the and whether the proposed guidance was the general guidance is directed. Specified FBOs. sufficiently clear. On May 6, 2020, the agencies b. Proposed Guidance II. Overview of Comments extended the 2021 resolution plan submission date for Category II and III In March 2020, the agencies invited The agencies received and reviewed firms, including those firms who are public comment on the proposed seven comment letters on the proposed currently Specified FBOs, from July 1 to guidance, which was proposed to apply guidance. Commenters included various September 29.16 In accordance with the beginning with the subject firms’ 2021 financial services trade associations, a expectation set out in the preamble to resolution plan submissions. The financial market utility, and two FBOs. the 2019 Rule revisions, the agencies are proposed guidance began with a In addition, the agencies met with further extending the 2021 resolution description of the proposed scoping industry representatives and FBOs at plan submission deadline for the firms methodology and was then organized their request to discuss issues relating to that are currently Specified FBOs and into eight substantive areas, consistent the proposed guidance.18 This section were previously subject to the 2018 FBO with the 2018 FBO guidance. These provides an overview of the general guidance to December 17, 2021, to areas were: Capital, liquidity, themes raised by commenters. The provide the firms with sufficient time to governance mechanisms, operational, comments received on the proposed develop their targeted resolution plans branches, group resolution plan, legal guidance are further discussed below in in light of the final guidance. In entity rationalization and separability, the sections describing the final addition, as discussed in more detail and derivatives and trading activities. guidance, including any changes that below, a Specified FBO that was not The proposed guidance described the the agencies have made to the proposed subject to the 2018 FBO guidance for its agencies’ proposed expectations for guidance in response to comments. most recent resolution plan submission each of these areas. The proposal was largely consistent Further Tailoring of Proposal Due to will not be expected to have taken the with the 2018 FBO guidance and the Reduced Size and Risk final guidance into consideration in 2019 domestic guidance. Accordingly, developing its targeted plan submission Most commenters suggested that the the agencies expected that the Proposed due in 2021. Instead, such a firm should proposed guidance should be further FBOs had already incorporated consider the final guidance in tailored for the Proposed FBOs. They significant aspects of the proposed asserted that these firms have reduced connection with developing its next full guidance into their resolution planning. resolution plan submission due in 2024. the size and systemic risk profiles of With respect to the 2019 domestic their U.S. operations since resolution International Cooperation on Resolution guidance, the proposed guidance guidance was originally issued, and the Planning differed in certain respects, given the guidance should be commensurately circumstances under which a foreign- The 2018 feedback letters also noted streamlined. Therefore, commenters based covered company’s U.S. questioned the appropriateness of the importance of the agencies’ resolution plan is most likely to be engagement with non-U.S. regulators. issuing guidance to the Proposed relevant. The proposal was tailored for FBOs—which they noted were Category The Specified FBOs are subject to their large, complex FBOs as compared to the home country resolvability frameworks, III firms, as calculated using the assets U.S. global systemically important and activities of each firm’s top tier U.S. in addition to section 165(d) of the banks (G–SIBs) to account for Dodd-Frank Act and the Rule. intermediate holding company—that differences between U.S. G–SIBs’ and would be similar to the guidance Resolution of the U.S. operations of a FBOs’ U.S. footprints and operations. firm domiciled outside the United provided to the U.S. G–SIBs, which are The proposal updated the PCS and Category I covered companies. States with significant global activities derivatives and trading activities areas (e.g., the Specified FBOs) will require Commenters argued that, in some cases, of the 2018 FBO guidance to reflect the the proposed guidance was even more substantial coordination between home agencies’ review of certain FBOs’ 2018 and host country authorities, just as expansive than the guidance issued to resolution plans and revisions the U.S. G–SIBs. Certain commenters resolution of the foreign operations of a contained in the 2019 domestic U.S. G–SIB would. The agencies also stated that the proposal failed to guidance. It also made minor articulate a clear distinction in the identified three areas in the 2018 clarifications to certain areas of the 2018 feedback letters (legal entity expectations applicable to Category I FBO guidance in light of the 2019 Rule firms and to Category II/III firms. In rationalization, PCS, and derivatives revisions. In general, the proposed booking practices) where enhanced addition, commenters asserted that the revisions to the guidance were intended proposal, if finalized, would have cooperation between the agencies and to streamline the firms’ submissions and each firm’s home country regulatory resulted in disparate treatment among to provide additional clarity. In firms in Category II and Category III. authorities would maximize addition, the proposed guidance would resolvability under both the U.S. and have consolidated all guidance Home Country Considerations home country resolution strategies.17 applicable to the Proposed FBOs into a Some commenters disagreed with the The agencies will continue to single document, which would provide proposal’s view on resolution planning coordinate with non-U.S. authorities the industry and public with one source for the Proposed FBOs, which these regarding these and other resolution of applicable guidance to which to refer. commenters described as narrowly matters (e.g., resources in resolution, The agencies invited comments on all focused on the resolution of U.S. communications), including aspects of the proposed guidance. The operations independent of home developments in the U.S. and home agencies also specifically requested country measures or foreign parent comments on a number of issues, support. The commenters noted that 16 See https://www.federalreserve.gov/ including whether the topics in the these firms have been subject to newsevents/pressreleases/bcreg20200506a.htm and proposed guidance represented the key https://www.fdic.gov/news/news/press/2020/ extensive home country frameworks, pr20057.html. vulnerabilities of the covered companies 17 Available at www.federalreserve.gov/ in resolution, whether the proposed 18 Summaries of those meetings and copies of the newsevents/pressreleases/bcreg20181220c.htm. scope of applicability was appropriate, comments can be found on each agency’s website.

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which include global SPOE strategies. Payment, Clearing, and Settlement structures and global and U.S. These commenters asserted that the Services resolution plans. They asserted that, resolution plans for the U.S. operations Several commenters asserted that the accordingly, the guidance should of these firms should be considered in proposed guidance for PCS services continue to focus on the need to this context and should not have raised issues of extraterritoriality. They mitigate the risks of creditor challenges and on how well the strategy selected by requirements equivalent to the U.S. G– argued that the PCS guidance regarding the firm satisfies the policy objectives of SIBs. non-U.S. affiliates should be addressed the agencies, rather than specifying a Some commenters cited prior as part of the group resolution planning particular mechanism. comments by the Vice Chair for process or supervision and any related Supervision of the Board in which he information request would be outside Capital and Liquidity encouraged host regulators to recognize the scope of the Title I resolution plan The agencies received a number of their interests in the success of the requirements. They also proposed that comments on the capital and liquidity foreign parent company’s SPOE strategy the agencies obtain this information sections of the proposed guidance. With and to provide further flexibility for the through home-host supervisor regard to the capital section of the parent to move resources as necessary cooperation. Commenters also argued proposed guidance, commenters argued within the organization. The that the proposed PCS expectations that the proposal included expectations commenters offered resource pre- were even more extensive than the that are duplicative of existing capital placement requirements for FBOs, guidance provided to the U.S. G–SIBs requirements and suggested removing which exceed those required by on this topic. the guidance on resolution capital similarly sized U.S. firms, as an One commenter supported certain adequacy and positioning (RCAP) from example of how the proposed guidance portions of the PCS services section, but the final guidance. Most of these would be inconsistent with these also suggested changes, including commenters asserted that streamlining principles. aligning the guidance with certain the multiple capital measures would Scoping Methodology expectations of the European Banking reduce burden on the firms. Further, Union’s resolution authority, enhancing two commenters asserted that the The commenters generally opposed communication strategies, and proposal would have reduced the the proposed use of the second clarifying terms used in the proposed flexibility for firms to position their methodology (method 2) of the G–SIB guidance. capital most effectively in stress. With surcharge framework as the scoping Derivatives and Trading Activities regard to the liquidity section of the methodology for the proposal. The proposed guidance, commenters commenters made a number of A number of comments concerning suggested there is redundancy between assertions about the proposed scoping the proposed derivatives guidance were the proposal and existing regulatory methodology, including: similar to those made for the PCS requirements and also recommended • Method 2 does not accurately section in asserting that the proposed removing the guidance on resolution reflect the reduced systemic risk of the information requests presented concerns liquidity adequacy and positioning Proposed FBOs due to shortcomings in of extraterritoriality and were outside (RLAP) from the final guidance. the scope of the Title I resolution plan the metric as applied to firms other than III. Final Guidance the U.S. G–SIBs. As a result, the method requirements. Commenters argued that 2 scores for the Proposed FBOs are the proposal called for strategies After considering the comments, inappropriately inflated. regarding and data on the activities of conducting additional analysis, and non-U.S. affiliates and non-U.S. further assessing the business and risk • Method 2 was not intended to be transactions. They noted that these profiles of the U.S. operations of large applied to FBOs as a scoping items are generally addressed in home and complex FBOs, the agencies are methodology, but rather was designed to country resolution plans or supervision issuing final guidance that includes calculate the G–SIB capital surcharge. and suggested that the related certain modifications and clarifications. • Using method 2 as the scoping information could be requested from In particular, the scope, capital, methodology for the guidance would be home country regulators. Some liquidity, governance mechanisms, PCS, inconsistent with the approach taken by commenters maintained that the and derivatives and trading activities the agencies to use the tailoring proposed guidance on derivatives was sections of the final guidance reflect framework to determine resolution plan broader than the guidance issued to the changes from the proposed guidance. submission requirements, especially U.S. G–SIBs and should be tailored for Other sections, such as group resolution since the agencies previously rejected the Proposed FBOs. For example, the plan, and sub-sections such as using the G–SIB surcharge framework proposal would have established management information systems, for that purpose. expectations for non-derivatives trading qualified financial contracts (QFCs), and Some commenters suggested a activities, such as securities financing mapping of branch activities, were number of alternatives to method 2 as transactions. determined to be duplicative of existing the scoping methodology. One regulatory requirements and suggestion was to use the tailoring Contractually Binding Mechanisms accordingly, have been eliminated from categories established for enhanced A few commenters provided views the guidance. The intent of these prudential standards, specifically concerning contractually binding changes is to clarify expectations, more having the proposal only apply to mechanisms (CBMs), which are closely align expectations with the Category II firms, as calculated using the intended to ensure that sufficient capital current business and risk profiles of the assets and activities of each firm’s top and liquidity are provided to material Specified FBOs’ U.S. operations, and tier U.S. intermediate holding company. entity subsidiaries in a timely manner. recognize that the preferred resolution Two commenters suggested, as an These commenters generally agreed that strategy for the Specified FBOs is a alternative, that the agencies use a the agencies should continue to allow successful home country resolution. The modified version of method 2 or method firms flexibility to create support agencies are also eliminating 1 G–SIBs’ surcharge scores. arrangements that work best for their expectations that relate to information

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that, in the agencies’ experience, may be Board’s tailoring rule.22 In addition, acknowledge that relevant resolution obtained through other existing and commenters asserted that the method 2 plan information can be obtained via effective mechanisms, such as home/ G–SIB framework was not designed to other means, such as through host coordination and supervisory be a scoping mechanism outside of engagement with home country information sharing. In addition, the certain requirements for U.S. G–SIBs, regulators and supervisory information final guidance consolidates all prior has never been applicable to IHCs, and sharing. The agencies appreciate the resolution planning guidance for the inappropriately weights the short-term analyses provided by the commenters firms in one document and clarifies that wholesale funding (STWF) factor. that compared the operations of U.S. G– any prior guidance not included in the Commenters also questioned the SIBs to the reduced U.S. footprint of final guidance has been superseded. proposal’s justification for why a Proposed FBOs with large U.S. These changes are discussed in more method 2 score of 250 was chosen as the operations. The agencies continue to detail below. threshold for purposes of scope of believe that the scope of heightened The final guidance is not meant to application. Furthermore, several resolution planning expectations limit firms’ consideration of additional commenters asserted that the proposed applicable to FBOs should align with vulnerabilities or obstacles that might guidance did not adequately recognize the Specified FBOs’ systemic risk arise based on a firm’s particular that the Proposed FBOs have reduced profile and relevant resolution structure, operations, or resolution risk at their U.S. operations, are smaller challenges, and the final guidance strategy and that should be factored into and less systemically important than the should be consistent with the principles the firm’s submission. Moreover, the U.S. G–SIBs, and are subject to robust of national treatment and equality of final guidance does not contain certain global resolution planning competitive opportunity. The agencies acknowledge expectations in the proposed guidance requirements, and so should not be commenters’ meaningful input on and in the 2018 FBO guidance, subject to similar expectations as the certain methodological traits in the including certain expectations relating U.S. G–SIBs. method 2 G–SIB surcharge framework, to capital, liquidity, governance Commenters suggested that the in particular the STWF factor weight, mechanisms, PCS, and derivatives and agencies consider alternative scoping which could distort the liquidity risk trading activities. The agencies do not methodologies, including those that and systemic relevance of FBOs relative expect that the Specified FBOs’ were discussed in the proposal’s preamble. Some commenters suggested to U.S. G–SIBs. Liquidity risk is just one resolution plans will continue to of several important factors in a address the elements that have been that the agencies adopt a scope based on the Board’s tailoring categories, with resolution scenario, and the measure of removed from the guidance. However, liquidity risk should not solely the agencies note that the Specified some commenters recommending that the guidance apply only to firms subject determine scoping of the guidance; FBOs’ resolution plans, like the plans rather, scoping should be determined for all covered companies, are still to Category II standards while others recommended that the final guidance holistically. Therefore, the final required to meet all of the informational guidance applies to FBOs that are requirements of the Rule should be similar to expectations for domestic firms subject to Category II subject to Category II standards notwithstanding these changes to the according to their combined U.S. guidance.19 and III standards. Other commenters suggested different potential options to operations pursuant to the Board’s The agencies note that commenters 23 modify or replace the proposed method tailoring rule and that are also described certain expectations that are 24 2 G–SIB surcharge framework, such as required to form IHCs. set forth in the guidance as Using the tailoring categories in this using method 1 G–SIB surcharge scores, ‘‘requirements.’’ The agencies are context also will promote uniform that the commenters asserted would clarifying that the final guidance does scoping between resolution expectations more appropriately balance the not have the force and effect of law. and regulatory requirements. As stated agencies’ guidance expectations with Rather, the final guidance outlines the in the preamble to the Rule, the agencies the actual risk profile of the Proposed agencies’ supervisory expectations believe that the risk-based indicators FBOs. Even if an alternative scoping regarding each subject area covered by identified in the Board’s tailoring rule methodology were adopted, some the final guidance.20 are an effective means of dividing firms commenters asked the agencies to into groups for the purposes of a. Scope of Application. consider tailoring the guidance to what determining the frequency and they viewed as the Proposed FBOs’ informational content of resolution The agencies received numerous reduced risk and stronger capital and comments objecting to the scope of plans. The indicators-based approach liquidity positions, and recommended for application of Category II, III, and IV application of the proposed guidance, that the final guidance not introduce which proposed using the method 2 G– standards provides a simple framework 21 new expectations beyond those already SIB surcharge framework to in effect. determine the Proposed FBOs. 23 Category II FBOs are defined as those with (1) In their consideration of the ≥$700 billion average combined U.S. assets or (2) Specifically, commenters argued that commenters’ feedback, the agencies ≥$100 billion average combined U.S. assets with the proposed scope of application have sought to align resolution plan ≥$75b in average cross-jurisdictional activity. appeared to be inconsistent with the supervisory expectations with the 24 The formula defining Category II in the Board’s principles of tailoring established in the tailoring rule does not include formation of an IHC current business and risk profiles of the as a requirement. The final guidance diverges from Specified FBOs’ U.S. operations through the Board’s tailoring rule in this respect because an 19 See 12 CFR 243.5 and 243.6; 12 CFR 381.5 and the simple, transparent, and predictable IHC formed pursuant to the Board’s Regulation YY 381.6. mechanism of the Board’s tailoring indicates the materiality of the FBO’s U.S. 20 See generally, Interagency Statement Clarifying operations that would go through bankruptcy under the Role of Supervisory Guidance (Sept. 11, 2018), framework. The agencies also the Bankruptcy Code or other ordinary U.S. available at https://www.federalreserve.gov/ resolution regime. The agencies note that Category supervisionreg/srletters/sr1805a1.pdf. See also Role 22 Prudential Standards for Large Bank Holding II is not limited to FBOs. The final guidance, of Supervisory Guidance, 85 FR 70512 (Nov. 5, Companies, Savings and Loan Holding Companies, however, is directed only to FBOs that meet the 2020). and Foreign Banking Organizations, 84 FR 59032 criteria noted above and not to domestic banking 21 12 CFR 217.405. (November 1, 2019). organizations.

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that supports the objectives of risk critical operations. Thus, the inclusion considered a Specified FBO, and the sensitivity and transparency and thus is of U.S. branches, agencies, and offices guidance will no longer be applicable to an appropriate mechanism for scoping in determining the scope of application that firm as of the date the firm ceases the application of the final guidance. of the final guidance is not only to be subject to Category II standards. Size and operational complexity are consistent with the Rule, but it is also also factors in the decision to apply the c. Consolidation of Prior Guidance and appropriate in order to measure the Format and Structure of Plans guidance to FBOs subject to Category II operational complexity and full scope of standards. As indicated in the preamble potential risks to U.S. financial stability One commenter supported, and no to the Board’s tailoring rule, the failure that a FBO may pose. commenters opposed, the agencies’ or distress of the U.S. operations of a Finally, while the method 1 G–SIB proposal to consolidate prior guidance. FBO that is subject to Category II surcharge score methodology could Accordingly, the final guidance standards could impose significant costs potentially address the concerns raised includes, as proposed, a section on the U.S. financial system and on STWF, the agencies believe the risk- regarding the format, assumptions, and economy. In addition, increased levels based indicator approach in the Board’s structure of resolution plans, which of cross-jurisdictional activity, an tailoring rule further simplifies includes the aspects of previous indicator for Category II firms, could application of the guidance. guidance that remain applicable to increase the operational complexity of a resolution planning. In light of the resolution, as it may be more difficult to b. Transition Period changes in the final guidance to the resolve or unwind a firm’s positions due The proposed guidance did not areas of capital, liquidity, governance to the involvement of multiple describe how the guidance would be mechanisms, and separability, the jurisdictions and regulatory authorities. applied to FBOs that become covered by agencies have reviewed the Frequently As such, FBOs subject to Category II its scope, but it did request comment on Asked Questions (FAQs) contained in standards merit the application of more the methodology and process for the proposed guidance. The FAQs detailed expectations than those FBOs determining the FBOs to which the appended to the final guidance contain that are smaller or that do not share the guidance should apply, including those FAQs that continue to be same indicators of operational risk. The whether the agencies should specify an applicable to resolution planning, with agencies also believe this modification implementation period for any FBOs appropriate modifications to reflect the to the scope appropriately focuses on that are designated as Specified FBOs changes to the final guidance. the largest and most complex FBOs with under the final guidance. Some Consistent with the proposal, to the U.S. IHCs without losing the focus on commenters requested that the agencies extent not incorporated in or appended cross-jurisdictional activities. provide clarity on a transition period for to the final guidance, prior guidance 26 While the proposal relied only to a firms that may newly fall under the is superseded. limited extent on the Board’s tailoring scope of the guidance, and, conversely, d. Capital and Liquidity rule for scoping the proposed on an exit process for firms that may no guidance—noting that the tailoring longer be covered. While the proposed guidance would categories were developed to determine To provide certainty to FBOs, the have maintained substantially all of the application of a broad range of final guidance includes transition expectations in the capital and liquidity enhanced prudential standards and sections that were included in the 2018 periods for Specified FBOs that were 27 were not explicitly focused on not previously within the scope of the FBO guidance, the final guidance, in determining which covered companies 2018 FBO guidance and for firms that contrast to the proposal, does not should be subject to more detailed become Specified FBOs after December include expectations for RCAP, RLAP, and certain liquidity capabilities. These resolution planning guidance—the 22, 2020. A firm that is currently a changes were made to more closely agencies have concluded that the Specified FBO, but was not previously align guidance expectations with the benefits of employing the tailoring the subject of guidance for its most current business and risk profiles of the categories—clear, predictable scoping recent resolution plan, will not be Specified FBOs’ U.S. operations and in based on publicly reported quantitative expected to have taken the final recognition of the overlap between those data—outweigh any concerns related to guidance into consideration in concepts and certain other regulatory using them for this purpose. developing its targeted plan submission provisions, as discussed below. As Consistent with the Rule, the final due in 2021. Rather, such a firm will be noted in the proposed guidance, the guidance takes into account a Specified expected to consider the final guidance agencies continue to evaluate the FBO’s entire U.S operations, including in developing its next full resolution branches and agencies (i.e., combined relationship between the capital and plan submission, so long as the firm is liquidity sections of the final guidance U.S. operations), when determining a Specified FBO as of the submission scope of applicability. As discussed in and other capital and liquidity date for that plan. regulatory provisions. The agencies the preamble to the 2019 Rule revisions, The final guidance also states that expect that any further changes to the reference to combined U.S. operations is when an FBO becomes a Specified FBO, appropriate as the resolution planning the final guidance will apply to the 26 In addition to the 2018 FBO guidance, the requirement applies to a firm’s entire firm’s next resolution plan submission U.S. operations. Moreover, U.S. agencies have also issued and provided to certain with a submission date that is at least FBOs: The Guidance for 2013 § 165(d) Annual branches, agencies, and offices 12 months after the time the firm Resolution Plan Submissions by Foreign-Based constitute a significant share of these Covered Companies that Submitted Initial becomes a Specified FBO.25 If a foreign banking organizations’ presence Resolution Plans in 2012; the February 2015 staff Specified FBO ceases to be subject to in the United States and the agencies’ communication regarding the 2016 plan Category II standards or to the Board’s submissions; the July 2017 Resolution Plan experience reviewing resolution plans requirement to form an intermediate Frequently Asked Questions; and feedback letters demonstrates that there are issued to Barclays PLC, Credit Suisse Group AG, holding company, it will no longer be interconnections and dependencies Deutsche Bank AG, and UBS AG in December 2018 and in August 2014 and feedback letters issued to between a foreign firm’s U.S. branches, 25 The plan type for that next submission remains Mitsubishi UFJ Financial Group in July 2019, agencies, and offices and its U.S. as specified by the Rule, i.e., a full or targeted January 2018, and July 2015. subsidiaries, core business lines, and resolution plan. See 12 CFR 243.4; 12 CFR 381.4. 27 Section II and Section III of the proposal.

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remaining guidance in these areas final guidance does not address these standardized measure like the NSFR. would be adopted following notice and requests. The agencies’ decision not to include comment. ii. Liquidity expectations for RLAP in the final i. Capital guidance obviates the need to analyze The final guidance retains the interaction between RLAP and TLAC. The final guidance does not include proposed expectations for resolution Separately, the suggestion to incorporate expectations for RCAP but retains liquidity execution need (RLEN) but liquidity expectations into existing proposed expectations for resolution does not include expectations for regulatory requirements is outside the capital execution need (RCEN). Several liquidity capabilities and RLAP. Several scope of the current guidance-making. commenters requested that the agencies commenters requested that the agencies remove RCAP expectations from the remove RLAP expectations from the e. Governance Mechanisms guidance because of the reduced U.S. guidance, in consideration of factors i. Playbooks systemic risk of the Proposed FBOs and including the reduced U.S. systemic risk the potential redundancy with other of the Proposed FBOs and potential The proposed guidance outlined an regulatory provisions, such as the redundancy with other regulatory expectation for Proposed FBOs to Board’s rule on total loss absorbing provisions, such as the Net Stable develop governance playbooks that capacity (TLAC). Commenters also Funding Ratio (NSFR) and internal detail specific actions that the board of suggested that RCAP expectations are liquidity stress testing. One commenter directors and senior management of U.S. redundant with TLAC requirements for suggested that the agencies conduct an non-branch material entities would take local, bail-in-able resources to assessment of the cumulative effect of under the firm’s U.S. resolution strategy. recapitalize an FBO’s U.S. operations, liquidity and capital expectations and The expectations related to and one commenter further asserted that requirements, specifically between communication and escalation protocols RCAP constrains a firm’s ability to RLEN and NSFR and between RLAP and were contingent on triggers, which are position capital within the U.S. IHC TLAC. Another commenter suggested firm-defined financial metrics reflecting entities in a manner that allows for the integrating the RLAP liquidity the U.S. IHC’s financial condition. In most flexibility and efficiency in a stress expectations in the proposal into addition, the proposed guidance called scenario. One commenter expressed regulatory liquidity requirements via the for playbooks to address, among other support for maintaining expectations for rulemaking process. This commenter things, the fiduciary responsibilities of RCEN. Some commenters also suggested also expressed concern about the boards of directors, potential conflicts of that the guidance should take into potential additive requirements and interest, and employee retention account the positioning of financial expectations of RLAP relative to the policies. One commenter suggested that resources in the United States in light of NSFR. Finally, one commenter the agencies streamline playbook the positioning of resources in the firm’s expressed support for maintaining expectations to focus only on non-U.S. operations and that the RLEN expectations. governance and escalation procedures agencies should reconsider expectations Like the rationale for eliminating as well as capabilities to produce key for resource preplacement within the RCAP from the final guidance, because information and data that support United States to encourage more of the Specified FBOs’ relatively simple timely and informed decision-making. flexibility at the international level. U.S. legal entity structures and reduced The commenter argued that outlining The final guidance does not include risk profiles, the final guidance does not details about specific decisions RCAP expectations concerning the include RLAP expectations concerning management would have to make would appropriate positioning of capital and the appropriate positioning of liquidity be of limited value given that other loss-absorbing instruments among among the U.S. IHC and its subsidiaries. resolution-related actions would be the U.S. IHC and its subsidiaries However, a firm’s ability to reliably because existing TLAC requirements driven by the circumstances and market estimate and meet the liquidity needs of conditions present at the time of applicable to the U.S. IHC provide a the U.S. IHC and its subsidiaries prior backstop of resources that is appropriate financial stress. The agencies are to, and in, resolution remains important finalizing this aspect of the guidance as to the size and complexity of the to the execution of a Specified FBO’s Specified FBOs. The final guidance, proposed as the agencies believe that U.S. resolution strategy, as reflected in the suggested additional information consistent with one commenter’s the Rule.28 The final guidance therefore recommendation, maintains the RCEN would have important value in a incorporates only expectations for resolution scenario. expectations regarding a methodology RLEN. The final guidance also for periodically estimating the amount eliminates references to RLAP. ii. Triggers of capital that may be needed to support The agencies do not believe there will each U.S. IHC subsidiary after the U.S. be significant overlap between RLEN The agencies received no comments IHC’s bankruptcy filing. RCEN helps the expectations and the NSFR rule because about the expectations in the proposed firm and the agencies determine when the regulation implicates long-term guidance regarding triggers. That said, the U.S. IHC is approaching a situation liquidity risks and stability of funding recognizing that the preferred resolution where it will not have sufficient sources, while the guidance focuses on outcome for the Specified FBOs is a resources to conduct a successful liquidity needs during a resolution successful home country resolution, the resolution. scenario, which are shorter-term in final guidance does not include Several commenters requested that nature. Further, liquidity needs in a expectations regarding triggers or the agencies reconsider requirements resolution scenario may be driven by escalation protocols based on the U.S. and expectations for resource highly idiosyncratic factors. These IHC’s financial condition. The final preplacement within the United States, factors can be incorporated into a firm’s guidance, however, retains the broader such as internal TLAC requirements RLEN framework, but would not expectation that firms have in place applicable to the U.S. IHC, that are not necessarily be addressed in a mechanisms to ensure that timely set by the guidance. As these communication and coordination occurs requirements and expectations are 28 See 12 CFR 243.5(c)(1)(iii); 12 CFR between and among the boards of the outside the scope of the guidance, the 381.5(c)(1)(iii). U.S. IHC, U.S. IHC subsidiaries, and the

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foreign parent to facilitate the provision (ii) internal TLAC requirements have agencies refer to the above discussion of financial support. been complied with and incentivize the about capital and liquidity in response firms to recapitalize their U.S. to concerns about the placement and iii. Potential Mechanisms for Parent operations to avoid the costs, availability of capital and liquidity.29 Support operational burdens, and other In addition, the final guidance Having a structure in place that consequences associated with removes the expectation for the facilitates the transmission of resources bankruptcy proceedings; and (iii) the resolution plan to include an analysis of to an FBO’s U.S. material entity Board has the authority to trigger the the potential challenges to the planned subsidiaries and mitigates against conversion of internal TLAC in the form foreign parent support to U.S. non- potential legal challenges is an of long-term debt into equity to branch material entities, and the important component for resolution recapitalize an IHC without the need for planned provision of capital and plans that contemplate the provision of a U.S. bankruptcy proceeding. This liquidity by a U.S. material entity to its such support. Neither the proposed commenter also argued that the agencies U.S. affiliates prior to the U.S. IHC’s guidance nor the Rule endorses a should provide a threshold for bankruptcy filing. This approach gives specific strategy for the provision of determining whether a CBM sufficiently due consideration to the arguments put such support. Rather, under the mitigates the risk of creditor challenges forth by commenters that the Specified proposal, firms would have been that is materially lower than for U.S. FBOs should have flexibility to expected to (i) develop a mechanism for BHCs for which a bankruptcy determine the particular form and planned foreign parent support of U.S. proceeding is a primary resolution structure of the framework developed to non-branch material entities to meet strategy. This commenter also stated support its particular resolution strategy those entities’ liquidity needs and (ii) that the agencies had already been and needs, that the preferred resolution include in their resolution plan provided with substantial legal analyses outcome for the Specified FBOs is a submissions analysis of potential supporting the workability of existing successful home country resolution, and challenges to planned foreign parent CBMs and urged the agencies to engage that internal TLAC resources are support and associated mitigants. with the Proposed FBOs prior to available for conversion to support IHC Further, the proposal provided that if a providing specific requirements recapitalization outside of bankruptcy. plan anticipates the provision of capital regarding CBMs. and liquidity by a U.S. material entity One commenter cautioned that the f. Operational (e.g., the U.S. IHC) to its U.S. affiliates proposed CBM guidance may impede i. Payment, Clearing and Settlement prior to the U.S. IHC’s bankruptcy filing, capital and liquidity placed in the U.S. Activities the plan should also include a detailed IHC from being returned to the parent legal analysis of the potential state law for efficient deployment globally, and Scope of PCS Activities: Most and bankruptcy law challenges and that a CBM developed only to support commenters requested that the scope of mitigants to the provision of resources. a U.S. resolution may trap financial the guidance be limited to U.S. material To date, some Specified FBOs have resources in the IHC. Separately, entities, core business lines, and critical relied on CBMs for the timely provision another commenter requested that the operations domiciled in the U.S. and of capital and liquidity from a U.S. agencies engage with the Proposed resolved under the U.S. Bankruptcy material entity (e.g., the U.S. IHC) to its FBOs and consider alternative Code, and that guidance should not U.S. affiliates prior to the U.S. IHC approaches to ensure the timely include indirect PCS relationships commencing a bankruptcy case and to availability of capital and liquidity through non-U.S. affiliates. Commenters mitigate potential legal challenges to the support. Suggestions included reducing contended that the proposal would provision of such support. In addition, or amending internal TLAC subject the Proposed FBOs to the agencies solicited comment on the requirements, allowing use of internal expectations that are essentially the benefits and costs and the relative TLAC to satisfy the demands of same as, and in some ways more advantages and disadvantages of two Comprehensive Capital Analysis and extensive than, the expectations for PCS approaches currently used by FBOs to Review, and eliminating the activities applicable to U.S. G–SIBs. assist the agencies in deciding whether requirement in the Rule that firms must Commenters also claimed that the to endorse a specific approach in assume the bankruptcy of a U.S. entity. proposal would be potentially finalizing the guidance. Consistent with the comments extraterritorial in its coverage of non- Commenters urged against imposing received, and to maintain flexibility for U.S. branches and affiliates and contrary specific requirements or expectations firms, the agencies are finalizing the to the Rule and Title I of the Dodd- regarding CBMs and supported guidance without including additional Frank Act. These commenters also maintaining flexibility for firms to expectations regarding the use and asserted that because non-U.S. affiliate determine the particular form and structure of CBMs. This lack of specific, relationships were covered under home structure of CBMs based on a firm’s additional expectations related to CBMs country regulatory frameworks, structure, resolution strategy, and global should not be interpreted as an inclusion of information about these capital and liquidity planning needs. expression of the agencies’ view on the relationships in U.S. resolution Commenters further recommended that feasibility of current support planning would be duplicative and the the agencies evaluate CBMs based on mechanisms. Additionally, no revisions information should be obtained via their effectiveness in mitigating creditor have been made in response to a home-host supervisor cooperation. One challenges. One commenter suggested comment that urged the agencies to commenter suggested that indirect that the agencies’ assessment of the describe, ex ante, a particular threshold access to PCS services through non-U.S. effectiveness of various CBMs should for what constitutes an effective CBM. affiliates does not raise significant U.S. take into consideration the nature of the Furthermore, the agencies have not resolution concerns. Another Proposed FBOs, specifically that: (i) All made changes in response to the commenter claimed that a U.S. material of the Proposed FBOs in the proposed comment recommending amendments entity would not have the ability to guidance have global SPOE strategies to various rules, as revisions to distinguish activity specific to its clients that do not contemplate the insolvency regulatory requirements are outside the of the U.S. IHC or any other U.S. entity; scope of the present guidance. The 29 See supra Section III.d (Capital and Liquidity).

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or counterparties with the indirect further suggested by commenters and commenter also suggested that the financial market utility (FMU), as this consistent with prior statements by the guidance put additional emphasis on activity is typically subject to netting by agencies, the agencies expect to engage the importance of continued firm the non-U.S. affiliate, and that a U.S. with the Specified FBOs and their home engagement with key external material entity of a Proposed FBO country authorities. stakeholders and that the agencies would not have the authority to make Providers of PCS Services: Two consider adding expectations for firm decisions on contingency actions commenters recommended clarifying communication with key FMUs and key involving an FMU that is accessed via the term ‘‘provider of PCS services’’ to agent banks during stress and a non-U.S. affiliate. These commenters include other key roles in which a firm resolution. The agencies also were suggested that the guidance be tailored may act, and to provide further encouraged by this commenter to to fit the Proposed FBOs’ reduced U.S. examples where a firm may act as develop their own communication footprint and their limited role in this provider (or recipient) of PCS services. strategies for key stakeholders and vet space, relative to U.S. G–SIBs. One commenter also recommended that them with relevant firms and FMUs. As a preliminary matter, the agencies the term ‘‘agent bank’’ should be The commenter further suggested that note that the Rule requires full clarified to specifically include ‘‘nostro firms should identify, ex ante, services resolution plan submissions by foreign- banks.’’ One commenter also suggested they would likely cease to provide in a based covered companies to include that firms be encouraged to amend their resolution and plan for actions they information on ‘‘the interconnections bilateral contracts with agent banks, would take to mitigate any resulting and interdependencies among the U.S. including contracts with nostro agents, adverse systemic impact. Finally, a subsidiaries, branches, and agencies, to facilitate continuity of access to PCS commenter stated that the guidance and between those entities and . . . services. The final guidance does not should recognize that there is specific, [a]ny foreign-based affiliate.’’ 30 In include additional clarification or industry-wide default guidance already addition, each full resolution plan is examples as the agencies do not intend in place for certain FMUs (e.g., central required to ‘‘identify each trading, the guidance to be prescriptive. Rather, counterparties) that would apply to a payment, clearing, or settlement system the final guidance is intended to Proposed FBO’s activities in a of which the covered company, directly provide a firm with flexibility to define resolution. or indirectly, is a member and on which and identify PCS services, as well as the The agencies are finalizing these the covered company conducts a instances where the firm is a provider elements of the guidance as proposed. material number or value amount of of such PCS services to its clients. The expectations in the final guidance trades or transactions.’’ 31 These Regarding the amendment of bilateral call for playbooks that address provisions, together, provide the contracts, the agencies believe that the specifically how firms would maintain agencies the authority to set forth the expectations regarding establishment of access to PCS services but that do not expectation that a firm’s PCS framework service-level agreements (SLAs) in the necessarily include a discussion of FMU address its indirect access to PCS Shared and Outsourced Services section rules around a member firm’s default. services through non-U.S. affiliates. The of the final guidance address the The final guidance aims to provide proposed guidance was therefore commenter’s suggestions. firms flexibility in determining how consistent with the Rule and Title I of One commenter also recommended they would best maintain access to PCS the Dodd-Frank Act. The agencies that the proposal recognize that many services in a stress scenario and to reiterate that continuity of access FMUs and agent banks do not clarify that playbooks are not expected arrangements provided indirectly by implement bilateral SLAs for core to include a scenario in which the firm non-U.S. affiliates to support a Specified clearing and custody services. The loses access to an agent bank or FMU. FBO’s U.S. operations and key clients agencies have clarified the final The proposed guidance contained are an important part of a Specified guidance by adding ‘as applicable’ to expectations for firms to engage with FBO’s U.S. resolution planning. the relevant capability in the guidance key external stakeholders and reflect The agencies acknowledge, however, text. any feedback received during such that commenters’ feedback that a non- Playbooks for Continued Access to ongoing outreach, and the agencies are U.S. affiliate’s ability to maintain access PCS Services: One commenter stated retaining those expectations in the final to key FMUs and key agent banks to that FMU playbooks should be guidance. To the extent that certain support indirect PCS relationships streamlined to include only critical playbook information may be addressed through non-U.S. affiliates may be information necessary to facilitate an in other sections of the firm’s addressed in the firm’s group resolution orderly resolution (e.g., management submission, the firm may include a plan or in other information provided to information, liquidity considerations, specific cross-reference to that content home country regulators. As such, key governance, and responsible parties) in the appropriate playbook. While the expectations that Specified FBOs submit and that firms should not be expected agencies are not expecting firms to detailed information related to non-U.S. to include information regarding FMU model expected FMU behaviors, firms affiliates’ support of their U.S. membership rules or expected behavior. are expected to consider operational and operations may be duplicative. In Another commenter stated that to the financial resources that would be recognition of this feedback and in an extent such critical information had needed to respond to adverse actions effort to more closely align expectations already been provided to the agencies and execute any contingency with the business and risk profiles of through prior exam processes, firms arrangement. In addition, given the joint the Specified FBOs’ U.S. operations, the should be able to reference such items nature of the resolution plan process, final guidance does not include instead of including them in playbooks. the final guidance, like the Rule, expectations that firms provide Separately, another commenter provides for incorporation of previously information regarding indirect access to recommended that the final guidance submitted resolution plan information key FMUs and agent banks provided by direct firms to maintain lists of key by reference. non-U.S. branches and affiliates. As resolution contacts for their key FMUs The comment suggesting that the and key agent banks and provide agencies develop their own 30 12 CFR 243.5(a)(2)(i); 12 CFR 381.5(a)(2)(i). equivalent contact information to key communication strategies for key 31 12 CFR 243.5(e)(12); 12 CFR 381.5(e)(12). FMUs and key agent banks. This stakeholders is not applicable to the

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content in a firm’s resolution plan; PCS services for key clients in the and thus the final guidance does not therefore, no changes have been made to Unites States. The final guidance is not include a section on MIS. address the comment. The agencies prescriptive, and each firm is expected iii. Managing, Identifying, and Valuing already proactively engage with firms to determine the relevant contingency Collateral and key stakeholders through various actions and arrangements that are fora, including direct engagement, crisis specific to maintaining continuity of The agencies received no comments management groups, and international access to its PCS activities. Firms have regarding the managing, identifying, and working groups focused on crisis the discretion to tailor the discussion to valuing collateral section of the management under the Financial client impacts specific to the PCS proposed guidance and are finalizing Stability Board. The agencies also services provided by such firms. The the section as proposed. encourage firms and their agent banks to agencies are not modifying provisions iv. Shared and Outsourced Services continue engaging and communicating related to the identification and with each other, key FMUs, agent banks, mapping of PCS services to key clients The agencies received no comments and clients, and other stakeholders to as this information helps the agencies regarding the shared and outsourced identify possible ways to support understand the ecosystem of provision services section of the proposed continued access to PCS services. of PCS services. guidance and are finalizing the section While expressing general support for Adverse Actions: A commenter as proposed. the expectations in the proposed expressed support for the expectation v. Qualified Financial Contracts guidance related to PCS-related for playbooks to assess the range of Liquidity Sources and Uses, a adverse actions that may be taken by The agencies received no comments commenter suggested that the sentence key FMUs or key agent banks but regarding the QFC section of the related to ‘‘PCS Liquidity Sources’’ be indicated that the term ‘‘adverse proposed guidance, which sets forth revised from ‘‘various currencies’’ to actions’’ may be incorrectly interpreted expectations for firms to articulate their ‘‘all currencies relevant to banks’ and suggested using ‘‘risk-mitigating progress in implementing requirements participation’’ in FMUs, to be consistent actions,’’ which would be more regarding contractual stays in qualified with international expectations. The consistent with a home country financial contracts. However, the agencies are adopting this suggestion in authority’s guidance. The agencies are agencies are not including this sub- the final guidance. The commenter also not making any changes to the final section in the final guidance due to the suggested that the final guidance clarify guidance because ‘‘adverse actions’’ progress made by the Specified FBOs in that firms should assess their key FMU includes not only ‘‘risk mitigating complying with the QFC stay rules of and key agent bank liquidity needs in actions,’’ but also a broader set of the Board, the Office of the Comptroller the aggregate so that firms account for actions that could be taken by key FMUs of the Currency, and the FDIC.33 the availability of funds across more or key agent banks. g. Branches than one key FMU or agent bank. Loss of Access: One commenter Regarding intraday liquidity, this suggested that there was a contradiction The agencies received no comments commenter suggested that the final in the proposed guidance and requested regarding the branches section of the guidance be amended to include clarification about whether there was an proposed guidance. However, the additional specific expectations for expectation for a firm to contemplate a agencies are removing expectations from playbooks beyond describing scenario where it loses access to a key the final guidance that are viewed as capabilities to control intraday liquidity FMU or key agent bank. The agencies duplicative to existing rules or repeat, inflows and outflows, and to identify are finalizing the guidance as proposed. without elaboration, components of the and prioritize time-specific payments. The final guidance specifies that a firm Rule. Specifically, mapping The agencies are not adopting these is not expected to incorporate a scenario expectations for U.S. branches that are suggestions in the final guidance to in which it loses FMU or agent bank material entities are specified in the allow the Specified FBOs flexibility to access into its U.S. resolution strategy. Rule.34 In addition, expectations for a tailor and streamline playbook content However, in support of maintaining liquidity buffer are addressed in the based on the actual profile of their PCS continuity of access to PCS services, Board’s Regulation YY.35 Neither activities relevant to their U.S. playbooks should provide analysis of subsection of the proposed guidance operations. the financial and operational impacts to was intended to expand upon or clarify Key Client Contingency the firm’s material entities and key existing rules and thus it is appropriate Arrangements: Two commenters clients due to adverse actions that may to remove them from the final guidance. questioned the benefit of expectations be taken by an FMU or agent bank, and The remaining parts of the Branches related to the identification and the contingency actions that may be section regarding expectations for mapping of PCS services to key clients taken by the filer. supporting assumptions on continuity and the description of contingency of operations and analyzing the impact actions that the firm may take ii. Management Information Systems of cessation of operations remain concerning provision of intraday credit The agencies received no comments unchanged from the proposed guidance. regarding the management information to key clients since most clients have h. Group Resolution Plan other relationships. Another commenter systems (MIS) section of the proposed suggested that the final guidance guidance. The expectations contained in The agencies received no comments contain examples of particular actions the proposed guidance articulate general regarding the group resolution section of and arrangements that the agencies expectations for firms to have the the proposed guidance, which set forth expect the firms to consider around the requisite MIS capabilities to produce expectations for firms to address how provision of intraday credit to affiliate timely, accurate financial and risk data and third-party clients. The agencies are on a U.S. legal entity basis. The agencies 33 12 CFR part 47 (Office of the Comptroller of the Currency); 12 CFR part 252, subpart I (Board); and not modifying the final guidance in determined that the expectations and 12 CFR part 382 (FDIC). 32 response to these comments. The final capabilities are addressed in the Rule 34 See 12 CFR 243.5(a)(2), (g); 12 CFR 381.5(a)(2), guidance contains expectations that (g). firms maintain continuity of access to 32 See 12 CFR 243.5(f); 12 CFR 381.5(f). 35 See 12 CFR 252.

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resolution planning in the U.S. is address matters raised by the This provision provides the agencies the integrated into the group resolution commenters. Specifically, the final authority to set forth the expectation plan. However, in recognition that the guidance does not include elements that a resolution plan include preferred resolution outcome for many from the proposal related to derivatives information about the firm’s derivatives Specified FBOs is a successful home and trading activities originated in the and trading activities, including country resolution using an SPOE U.S. and booked directly to non-U.S. derivatives and trading activities resolution strategy, the agencies expect affiliates. Commenters argued that the originated from U.S. entities that are to supplement their understanding of derivatives guidance should not include booked directly into a non-U.S. affiliate, the impact on U.S. operations of U.S. derivatives and trading activities or because those activities occur in executing a firm’s group resolution plan prime brokerage customer account material part in the United States. through international collaboration with balances booked directly to non-U.S. Accordingly, the proposed guidance home country regulators and therefore affiliates because they are beyond the was consistent with the Rule and Title such a section is unnecessary. The scope of the Rule and the information is I of the Dodd-Frank Act. agencies determined that as this item is better gathered through collaboration However, after considering addressed by the Rule,36 the final with home country regulators. commenters’ views, and in an effort to guidance does not include a section on Commenters suggested that the more closely align expectations with the group resolution. derivatives guidance focus solely on current business and risk profiles of the derivatives and trading activities and Specified FBOs, the final guidance does i. Legal Entity Rationalization and prime brokerage customer account not include expectations concerning Separability balances that are booked to U.S. derivatives and trading activities that The agencies received no comments material entities and related to core originate from U.S. entities but are regarding the legal entity rationalization business lines and critical operations.37 booked into non-U.S. affiliates. Because and separability section of the proposed Further, commenters suggested that the the booking of U.S. derivatives and guidance. However, consistent with guidance should not include the trading activities regularly occurs across agencies’ efforts to more closely align identification, assessment, or reporting jurisdictions and creates guidance expectations with the current on risk transfer arrangements with non- interconnections and interdependencies business and risk profiles of the U.S. affiliates and also argued that the among and between a firm’s U.S. Specified FBOs’ U.S. operations, the proposed guidance would result in entities and its non-U.S. affiliates, the final guidance does not include the firms having to create reporting agencies expect to coordinate with separability expectations, which would processes for activities booked in non- home country authorities to collect have suggested that firms identify U.S. affiliates. Commenters also information about derivatives booking discrete U.S. operations that would be suggested that the proposed guidance activities that occur across jurisdictions sold or transferred in a resolution would subject the Proposed FBOs to in order to understand any related risks scenario. Given that the U.S. operations expectations greater than, or similar to, to the execution of the firm’s U.S. of the Specified FBOs are a those imposed on U.S. G–SIBs and that resolution strategy. This approach is subcomponent of a larger FBO, for transactions booked outside the U.S. fall consistent with the 2018 Title I feedback which the preferred resolution approach under the purview of home country letters to some Specified FBOs, in is a home-country SPOE resolution, the authorities, are best addressed in the which the agencies indicated their agencies have found that the global resolution plan, and are outside intent to engage with the FBO and home separability options within the United the scope of the Rule and Title I of the authorities regarding derivatives States are few and that their inclusion Dodd-Frank Act. booking practices. in resolution plans has yielded limited As a preliminary matter, similar to the The agencies also have made several new insights. Moreover, the agencies discussion in the PCS section of this adjustments and clarifications in the expect that such information is preamble, the agencies note that the final guidance to address other matters obtainable through international Rule requires full resolution plan raised by the commenters. Commenters collaboration with home country submissions by foreign-based covered argued that the proposal inappropriately regulators. As such, the agencies have companies to include information ‘‘with applied the derivatives guidance to non- eliminated these expectations from the respect to the subsidiaries, branches and derivatives trading activities (e.g., final guidance. agencies, and identified critical securities financing transactions). The operations and core business lines, as agencies acknowledge that the Specified j. Derivatives and Trading Activities applicable, that are domiciled in the FBOs have drastically decreased their The agencies received a number of United States or conducted in whole or exposures to securities financing comments on the Derivatives and material part in the United States.’’ 38 transactions, while the U.S. G–SIBs Trading Activities section of the have increased their exposures. proposed guidance. Overall, 37 The agencies note that based on the Specified Therefore, the final guidance only commenters supported the proposed FBOs’ most recent resolution plans, each of the covers derivatives and linked non- elimination of the active and passive Specified FBOs identifies certain U.S. derivatives derivatives. and trading activities (including U.S. prime Commenters also suggested that a wind-down scenario analyses and rating brokerage services) as an identified critical agency playbooks, and recommended operation or core business line. Proposed FBO should be allowed to certain additional modifications and 38 12 CFR 243.5(a)(2)(i); 12 CFR 381.5(a)(2)(i). See define linked non-derivatives trading clarifications to streamline the also 12 CFR 243.5(a)(2)(ii); 12 CFR 381.5(a)(2)(i) positions based on its overall business (requiring each full resolution plan to include a and resolution strategy trading resolution plan submissions and ‘‘detailed explanation of how resolution planning provide further clarity. for the subsidiaries, branches and agencies, and positions. The agencies agree with this After reviewing the comments, the identified critical operations and core business comment, and the final guidance allows agencies have adopted final guidance lines of the foreign-based covered company that are for linked non-derivatives trading domiciled in the United States or conducted in positions to be defined based on the that includes several adjustments to whole or material part in the United States is integrated into the foreign-based covered company’s Specified FBO’s overall business and 36 See 12 CFR 243.5(a)(2)(ii); 12 CFR overall resolution or other contingency planning resolution strategy. Finally, some 381.5(a)(2)(ii). process.’’). commenters suggested that the scope for

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the prime brokerage subsection of the positions that are booked to U.S. large bank holding companies, proposal was either unclear or overly entities. including FBOs, to file resolution plans. broad. As suggested, the final guidance Finally, commenters suggested Another commenter encouraged the clarifies that a U.S. prime brokerage tailoring the scope of applicability of the agencies to consider aligning their client should be a client who signs a derivatives section using a threshold, guidance with the resolution-related prime brokerage agreement with a U.S. such as the Volcker Rule’s proprietary guidance issued by the European Single material entity. Further, the agencies are trading categories. The agencies do not Resolution Board. The agencies not finalizing aspects of the proposed believe that the compliance thresholds recognize that international guidance regarding requests for and the associated calculation coordination in resolution-related information and reporting related to methodology (total trading assets and matters is important to ensuring that prime brokerage activities that are liabilities) established under the Volcker home and host country regulators have booked to non-U.S. entities, as stated Rule accurately capture the size and sufficient understanding of the above. complexity of a firm’s derivatives resolvability of internationally active Some commenters recommended the activities for resolution purposes and financial companies. The purpose and agencies adjust certain expectations that thus are an inappropriate scoping general subject matter of the final are not specified in the proposed mechanism for the guidance. Therefore, guidance are generally consistent with guidance. The agencies have determined the final guidance does not incorporate those of the Single Resolution Board’s not to modify the guidance in these compliance thresholds, such as those Expectations for Banks. Both the final guidance and the Single Resolution instances. For example, commenters established by the Volcker Rule. stated that development of a plan for Board document describe the respective resolution of positions of non-U.S. k. Additional Comments authorities’ expectations regarding a number of key vulnerabilities in affiliates is beyond the scope of the i. Comments About the Development of resolution (e.g., governance Rule. The agencies note, as described the Proposal above, that the proposed guidance did mechanisms, operational, capital, not set out expectations that the The agencies received several general liquidity, and legal entity Proposed FBOs develop a plan for the comments about the development of the rationalization). The agencies will resolution of derivatives and trading proposed guidance. The agencies have continue to work with international counterparts to build a shared activities booked to non-U.S. entities. considered these commenters’ input but understanding around resolution-related The scope of the stabilization and de- have made no modifications to the final matters through participation in firm- risking strategy subsection applies only guidance. specific, cross-border crisis management to U.S. derivatives portfolios booked to One commenter claimed that the groups, as both home authorities and U.S. entities. agencies’ proposed guidance did not reflect internationally agreed upon host authorities. The agencies received comments Other commenters suggested that the approaches to home and host authority related to tailoring derivatives proposed guidance did not adequately responsibility with regard to resolution expectations. For example, commenters recognize foreign parents as sources of planning, with the proposal’s continued suggested the segmentation analysis and strength to the U.S. operations of emphasis on a separate U.S. strategy, analysis of de-risking strategy Proposed FBOs, but instead appeared to which the commenter argued is largely provisions of the proposal were neither treat the non-U.S. parent and affiliates duplicative of home country warranted nor sufficiently clear for only as sources of risk for U.S. material requirements. Other commenters Proposed FBOs because their entities. The agencies understand that derivatives exposures are significantly criticized the proposed guidance for not the preferred resolution outcome for smaller than those of U.S. G–SIBs. After reflecting any reliance on supervisory many Specified FBOs is a successful considering multiple relevant factors, colleges and crisis management groups, home country resolution using a SPOE the agencies have not modified the or on the capital markets and resolution resolution strategy where U.S. material guidance in response to these rules and requirements of the Securities entities are provided with sufficient comments. The ability to identify, and Exchange Commission, Financial capital and liquidity resources to allow quickly and reliably, problematic Industry Regulatory Authority, or the them to stay out of resolution derivatives positions and portfolios is Commodity Futures Trading proceedings and maintain continuity of foundational to minimizing uncertainty Commission. operations throughout the parent’s and estimating resource needs for an The agencies do not agree with these resolution. The Rule balances this orderly resolution of a firm’s U.S. comments. Since the enactment of recognition with the concern that entities. Further, in the event of material section 165(d) of the Dodd-Frank Act, support from a foreign parent in stress financial distress or failure, the the agencies have worked bilaterally cannot be ensured. The final guidance, resolvability risks related to a firm’s and multilaterally with relevant in turn, lays out expectations that reflect U.S. derivatives and trading activities domestic and foreign authorities and in a number of key vulnerabilities could be a key obstacle to the firm’s various international fora to understand associated with an orderly resolution orderly resolution of any U.S. IHC risks to the firms’ orderly resolution under the U.S. Bankruptcy Code. subsidiary with a derivatives portfolio. under the U.S. Bankruptcy Code, as well Certain commenters suggested that As a result, the final guidance confirms as to share resolution planning the agencies streamline plan that a firm’s plan should provide a expertise. In addition, the agencies have submissions to make the documents detailed analysis of its strategy to established resolution-related more actionable and reduce the time the stabilize and de-risk any derivatives information-sharing arrangements with agencies may need to review and portfolio of any U.S. IHC subsidiary that both domestic and foreign authorities in challenge the submissions. These continues to operate after the U.S. IHC an effort to enhance the prospects for a commenters also encouraged the enters into a U.S. bankruptcy successful cross-border resolution of the agencies to leverage information proceeding. The agencies also note that Specified FBOs. Moreover, the agencies provided by firms through existing bank the portfolio segmentation subsection note that both section 165(d) of the supervision and exam processes to applies only to U.S. derivatives Dodd-Frank Act and the Rule require all collect information relevant to the

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agencies’ review of resolution planning. relationships, engage bilaterally with determined that it would revise the The agencies note that the scope and the Proposed FBOs to clarify reporting provisions that have been informational content of resolution plan outstanding concerns about the previously approved by OMB under the submissions are dictated by the Rule. resolvability of the firms’ U.S. Board’s OMB control number 7100– That said, the agencies have endeavored operations, as well as any concerns 0346 (Reporting Requirements in this final guidance to tailor about the firms’ reliance on home Associated with Regulation QQ; FR QQ) expectations for the Specified FBOs’ country resolution strategies. and the FDIC’s control number 3064– resolution plans to be commensurate to These comments do not directly relate 0210 (Reporting Requirements and address risks posed by key to the guidance and, as a result, the Associated with Resolution Planning). vulnerabilities of the Specified FBOs in agencies are not making any changes to The Board has reviewed the final resolution. The agencies also have made the final guidance. Relatedly, one guidance under the authority delegated a number of modifications to the final commenter asked the agencies to clearly to the Board by OMB. The agencies’ guidance with the express purpose of identify residual concerns with respect information collections will be extended streamlining plan expectations and, to each Proposed FBO and then tie for three years, with revision. where appropriate, leveraging existing resolution planning guidance to those Current Actions supervisory relationships with home concerns. The agencies expect that and host country authorities to overall engagement and ongoing dialog The proposed guidance stated that the collaboratively obtain information about and feedback with each of the Specified proposed changes to the 2018 FBO the resolution planning and FBOs will continue to provide clarity on guidance would not revise the reporting resolvability of the firms. any outstanding concerns with respect provisions that have been previously to resolution capabilities. The agencies cleared by the OMB under the Board’s ii. Comments About General Concerns also note that the final guidance takes control number 7100–0346 and the With the Proposal into consideration the agencies’ FDIC’s control number 3064–0210. The Some commenters asserted that the experience in reviewing prior resolution agencies did not receive any comments proposed guidance exceeded the scope plan submissions. No specific changes on the PRA determination in the of the Rule or Title I of the Dodd-Frank have been made to the final guidance in proposed guidance. Act, introduced definitions and response to this comment. However, as indicated above, the final expectations that were inconsistent with guidance includes certain modifications the Rule, and created issues of iv. Comments Outside the Scope of and clarifications to the proposed extraterritoriality and duplication of Guidance-Making guidance. In particular, the scope, information that may already be covered One commenter requested that the capital, liquidity, governance under home country regulations. Some agencies also incorporate that mechanisms, PCS, and derivatives and commenters also objected to commenter’s thoughts into future trading activities sections of the final expectations pertaining to the changes to guidance for U.S. G–SIBs, guidance reflect changes from the identification, assessment, or reporting while another commenter argued for the proposal. Other sections or sub-sections, of indirect relationships through non- removal of the Proposed FBOs from the such as group resolution plan, U.S. affiliates, or risk transfer Board’s Large Institution Supervision management information systems, arrangements with non-U.S. affiliates. Coordinating Committee (LISCC) QFCs, separability, and mapping of These comments are addressed in the portfolio. The final guidance does not branch activities, were determined not individual sections of this preamble to apply to U.S. G–SIBs, who remain to be necessary as they are duplicative which they relate. subject to heightened resolution plan of existing regulatory requirements or Another commenter recommended supervisory expectations given their not reflective of the Specified FBOs’ modifying resolution guidance and size and risk profile, and the current business models and requirements to emphasize firms composition of the LISCC portfolio of accordingly have been eliminated from maintaining resolution capabilities that firms is similarly outside the scope of the guidance. The intent of these remain available during business as this final guidance. Accordingly, the changes is to clarify expectations, more usual. This comment generally aligns agencies have not made any changes to closely align expectations with the with the agencies’ approach to the guidance to address these current business and risk profiles of the resolution planning expectations, and comments.39 Specified FBOs’ U.S. operations, and the final guidance emphasizes that the IV. Paperwork Reduction Act recognize that the preferred resolution Specified FBOs should have effective strategy for the Specified FBOs is a capabilities and well-developed plans. Certain provisions of the guidance successful home country resolution. The That said, the agencies do not believe contain ‘‘collection of information’’ final guidance also eliminates that any specific revisions are necessary provisions within the meaning of the expectations for information that, in the to respond to this comment; rather, the Paperwork Reduction Act of 1995 (44 agencies’ experience, may be obtained agencies will continue to deliberate how U.S.C. 3501–3521) (PRA). In accordance through other existing and effective to ensure that resolution planning can with the requirements of the PRA, the mechanisms. be facilitated by and integrated into the agencies may not conduct or sponsor, As a result of these changes, the final firm’s business-as-usual practices. and a respondent is not required to guidance reduces the existing estimated respond to, an information collection burden for a triennial full complex filer iii. Comments About Resolution unless it displays a currently valid from 13,135 hours to 9,916 hours per Planning Generally Office of Management and Budget year. This reduction is driven mainly by The agencies received several (OMB) control number. The agencies significant reductions in the burdens comments about the broader reviewed the final guidance and related to capital, liquidity, separability, supervisory landscape related to and governance mechanisms. These resolution planning. Certain 39 The agencies note that, on November 6, 2020, burden savings are borne by the the Board announced that it is updating the list of commenters recommended that the firms supervised by the LISCC Program. See https:// Proposed FBOs. agencies, in addition to deepening home www.federalreserve.gov/newsevents/pressreleases/ One FBO is no longer classified as a and host country regulatory bcreg20201106a.htm. triennial full complex filer and thus

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saves the total burden associated with Historically, the Board and the FDIC Agency Form Number: FR QQ. filing a triennial full complex resolution have split the respondents for purposes Frequency of Response: Biennially, plan. However, another FBO is newly of PRA clearances. As such, the agencies Triennially. classified as a triennial full complex will split the change in burden as well. Respondents: Bank holding filer and must bear the burden. The The FDIC has agreed to take the burden companies (including any foreign bank agencies estimate the annual burden for of the new triennial full complex filer or company that is, or is treated as, a this new triennial full complex filer as and one Proposed FBO whereas the bank holding company under section 9,767 hours per year. This estimate Board will take the burden for the 8(a) of the International Banking Act of differs from the burden for the Proposed remaining two Proposed FBOs. 1978, and meets the relevant total FBOs for primarily two reasons: (1) The Specially, as a result of this split and consolidated assets threshold) with total agencies estimate that the new triennial these revisions, there will be a net consolidated assets of $250 billion or full complex filer will incur some start- decrease in the overall estimated burden more, bank holding companies with of 6,438 hours for the Board and 6,587 $100 billion or more in total up costs in preparing its first full hours for the FDIC. Therefore, the total consolidated assets with certain resolution plan that is subject to the Board estimated burden for its entire characteristics, and nonbank financial final guidance; and (2) the agencies information collection (7100–0346) is firms designated by the Financial estimate that the burden for the new 209,168 hours and the total FDIC Stability Oversight Council for triennial full complex filer’s 2021 estimated burden for its entire supervision by the Board. targeted resolution plan will be less information collection (3064–0210) is The following table presents only the than the burdens for the three Proposed 203,332 hours. change in the estimated burden hours, FBOs because the new triennial as amended by this final guidance, Proposed Information Collection complex filer will not be expected to broken out by agency. The table does consider the final guidance for its 2021 Title of Information Collection: not include a discussion of the targeted resolution plan (unlike the Reporting Requirements Associated remaining estimated burden hours, three other covered companies). with Resolution Planning. which remain unchanged.

TABLE 1—BURDEN HOUR ESTIMATES UNDER CURRENT REGULATIONS AND UNDER THE FINAL GUIDANCE

Estimated FR QQ Number of Annual Estimated average annual burden respondents frequency hours per response * hours

Board Burdens

2019 Rule Revisions: Triennial Full Complex Foreign ...... 2 1 13,135 ...... 26,270

Board Total ...... 26,270 Final Guidance: Triennial Full Complex Foreign ...... 2 1 9,916 ...... 19,832

Board Total ...... 19,832

FDIC Burdens

2019 Rule Revisions: Triennial Full Complex Foreign ...... 2 1 13,135 ...... 26,270

FDIC Total ...... 26,270 Final Guidance: Triennial Full Complex Foreign ...... 1 1 9,916 ...... 9,916 Triennial Full Complex Foreign (new) ...... 1 1 ** 9,767 ...... 9,767

FDIC Total ...... 19,683 * Hours are calculated as the hours to prepare and submit one full resolution plan and one targeted resolution plan, annualized over 6 years. ** Includes one-time start-up burdens for new triennial full complex foreign filers and excludes guidance-based burdens for the new triennial full complex filer’s 2021 targeted resolution plan, as the filer is not expected to consider the guidance for that plan.

V. Final Guidance b. Managing, Identifying, and Valuing requires certain financial companies to Collateral report periodically to the Board of Guidance for Resolution Plan c. Shared and Outsourced Services Governors of the Federal Reserve Submissions of Certain Foreign-Based VI. Branches System (the Federal Reserve or Board) Covered Companies VII. Legal Entity Rationalization VIII. Derivatives and Trading Activities and the Federal Deposit Insurance I. Introduction IX. Format and Structure of Plans Corporation (the FDIC) (together the II. Capital X. Public Section Agencies) their plans for rapid and III. Liquidity Appendix: Frequently Asked Questions orderly resolution in the event of IV. Governance Mechanisms I. Introduction material financial distress or failure. On a. Playbooks November 1, 2011, the Agencies V. Operational Section 165(d) of the Dodd-Frank promulgated a joint rule implementing a. Payment, Clearing and Settlement Wall Street Reform and Consumer Activities Protection Act (12 U.S.C. 5365(d))

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the provisions of Section 165(d).1 implementation of their U.S. resolution enhancing capabilities, providing Subsequently, in November 2019, the strategy.6 detailed analysis, or increasing Agencies finalized amendments to the The Agencies are providing guidance optionality development, as indicated joint rule addressing amendments to the to the Specified FBOs to assist their below. Dodd-Frank Act made by the Economic further development of a resolution plan Under the Rule, the Agencies will Growth, Regulatory Relief, and for their U.S. operations for their 2021 review the Plan to determine if it Consumer Protection Act and improving and subsequent resolution plan satisfactorily addresses key potential certain aspects of the joint rule based on submissions. This guidance for vulnerabilities, including those the Agencies’ experience implementing Specified FBOs builds upon the specified below. If the Agencies jointly the joint rule since its adoption.2 guidance issued in December 2018 for decide that these matters are not Financial companies meeting criteria set certain U.S.-based covered companies, satisfactorily addressed in the Plan, the out in the Rule must file a resolution taking into account the circumstances Agencies may determine jointly that the plan (Plan) according to the schedule under which a U.S. resolution plan is Plan is not credible or would not specified in the Rule. most likely to be relevant for an FBO. facilitate an orderly resolution under the The U.S. resolution plan for a Specified U.S. Bankruptcy Code. This document is intended to provide FBO would address a scenario where II. Capital guidance to certain foreign banking the U.S. operations experience material organizations (FBOs) that are required to financial distress and the foreign parent The firm should have the capital submit Plans regarding development of is unable or unwilling to provide capabilities necessary to execute its U.S. their respective U.S. resolution sufficient financial support for the resolution strategy, including the model strategies (Specified FBOs or firms). continuation of U.S. operations, and at and estimation process described below. Specifically, the guidance applies to any least the top tier U.S. Intermediate To the extent required by the firm’s FBO that is subject to Category II Holding Company (U.S. IHC) files for U.S. resolution strategy, U.S. non- standards according to its combined bankruptcy under Title 11, United branch material entities need to be U.S. operations in accordance with the States Code. Under such a scenario, the recapitalized to a level that allows for an Board’s tailoring rule 3 and that is Plan should provide for the orderly orderly resolution. The firm should required to form an intermediate resolution of the Specified FBO’s U.S. have a methodology for periodically holding company.4 material entities 7 and operations. estimating the amount of capital that may be needed to support each U.S. IHC When an FBO first becomes a In general, this document is organized subsidiary after the U.S. IHC bankruptcy Specified FBO,5 this document will around a number of key vulnerabilities in resolution (e.g., capital; liquidity; filing (Resolution Capital Execution apply to the firm’s next resolution plan governance mechanisms; operational; Need or RCEN). The firm’s positioning submission that is due at least 12 legal entity rationalization; and of IHC total loss absorbing capacity months after the date the firm becomes derivatives and trading activities) that (TLAC) 8 should be able to support the a Specified FBO. If a Specified FBO apply across resolution plans. RCEN estimates. ceases to be subject to Category II Additional vulnerabilities or obstacles The firm’s RCEN methodology should standards or to the Board’s requirement may arise based on a firm’s particular use conservative forecasts for losses and to form an intermediate holding structure, operations, or resolution risk-weighted assets and incorporate company, it will no longer be a strategy. Each firm is expected to estimates of potential additional capital Specified FBO, and this document will satisfactorily address these needs through the resolution period,9 no longer apply to that firm. vulnerabilities in its Plan—e.g., by consistent with the firm’s resolution The document is intended to assist developing sensitivity analysis for strategy for its U.S. operations. The these firms in further developing their certain underlying assumptions, methodology is not required to produce U.S. resolution strategies. The document aggregate losses that are greater than the does not have the force and effect of 6 This guidance consolidates the Guidance for amount of IHC TLAC that would be law. Rather, it describes the Agencies’ 2018 § 165(d) Annual Resolution Plan Submissions required for the firm under the Board’s by Foreign-Based Covered Companies that 10 expectations and priorities regarding Submitted Resolution Plans in July 2015; the July final rule. The RCEN methodology these firms’ Plans and the Agencies’ 2017 Resolution Plan Frequently Asked Questions; should be calibrated such that general views regarding specific areas feedback letters issued to Barclays PLC, Credit recapitalized U.S. IHC subsidiaries have Suisse Group AG, Deutsche Bank AG, and UBS AG sufficient capital to maintain market where additional detail should be in December 2018 and in August 2014 and feedback provided and where certain capabilities letters issued to Mitsubishi UFJ Financial Group in confidence as required under the U.S or optionality should be developed and July 2019, January 2018, and July 2015; the resolution strategy. Capital levels maintained to demonstrate that each communications the Agencies made to certain should meet or exceed all applicable foreign-based Covered Companies in February 2015; firm has considered fully, and is able to regulatory capital requirements for and the Guidance for 2013 § 165(d) Annual ‘‘well-capitalized’’ status and meet mitigate, obstacles to the successful Resolution Plan Submissions by Foreign-Based Covered Companies that Submitted Initial estimated additional capital needs Resolution Plans in 2012 (taken together, prior throughout resolution. U.S. IHC 1 76 FR 67323 (November 1, 2011), codified at 12 guidance). To the extent not incorporated in or subsidiaries that are not subject to CFR parts 243 and 381. appended to this guidance, prior guidance is 2 Resolution Plans Required, 84 FR 59194 superseded. capital requirements may be considered (November 1, 2019). The amendments became 7 The terms ‘‘material entities,’’ ‘‘identified effective December 31, 2019. ‘‘Rule’’ means the joint critical operations,’’ and ‘‘core business lines’’ have 8 Total Loss-Absorbing Capacity, Long-Term Debt, rule as amended in 2019. Capitalized terms not the same meaning as in the Rule. The term ‘‘U.S. and Clean Holding Company Requirements for defined herein have the meanings set forth in the material entity’’ means any subsidiary, branch, or Systemically Important U.S. Bank Holding Rule. agency that is a material entity and is domiciled in Companies and Intermediate Holding Companies of 3 Prudential Standards for Large Bank Holding the United States. The term ‘‘U.S. non-branch Systemically Important Foreign Banking Companies, Savings and Loan Holding Companies, material entity’’ means a material entity organized Organizations, 82 FR 8266 (January 24, 2017). and Foreign Banking Organizations, 84 FR 59032 or incorporated in the U.S. including, in all cases, 9 The resolution period begins immediately after (Nov. 1, 2019). the U.S. IHC. The term ‘‘U.S. IHC subsidiaries’’ the U.S. IHC bankruptcy filing and extends through 4 See 12 CFR part 252. means all U.S. non-branch material entities other the completion of the U.S. resolution strategy. 5 See 12 CFR 252.5(c). than the U.S. IHC. 10 82 FR 8266 (January 24, 2017).

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sufficiently recapitalized when they requirements, market expectations, and need to act under the firm’s U.S. have achieved capital levels typically the firm’s post-failure strategy. These resolution strategy. required to obtain an investment-grade forecasts should inform the RLEN In order to meet liquidity needs at the credit rating or, if the entity is not rated, estimate, i.e., the minimum amount of U.S. non-branch material entities, the an equivalent level of financial high-quality liquid assets (HQLA) firm may either fully pre-position soundness. Finally, the methodology required to facilitate the execution of liquidity in the U.S. non-branch should be independently reviewed, the firm’s strategy for the U.S. IHC material entities or develop a consistent with the firm’s corporate subsidiaries. mechanism for planned foreign parent governance processes and controls for For non-surviving U.S. IHC support, of any amount not pre- the use of models and methodologies. subsidiaries, the firm should provide positioned, for the successful execution of the U.S. strategy. Mechanisms to III. Liquidity analysis and an explanation of how the material entity’s resolution could be support readily available liquidity may The firm should have the liquidity accomplished within a reasonable include a term liquidity facility between capabilities necessary to execute its U.S. period of time and in a manner that the U.S. IHC and the foreign parent that resolution strategy. In particular, the substantially mitigates the risk of can be drawn as needed and as firm should have a methodology for serious adverse effects on U.S. financial informed by the firm’s RLEN estimates estimating the liquidity needed after the stability. For example, if a U.S. IHC and liquidity positioning. The plan U.S. IHC’s bankruptcy filing to stabilize subsidiary that is a broker-dealer is should include analysis of how the U.S. any surviving U.S. IHC subsidiaries and assumed to fail and enter resolution IHC/foreign parent facility is funded or to allow those entities to operate post- under the Securities Investor Protection buffered for by the foreign parent. The filing, in accordance with the U.S. Act, the firm should provide an analysis sufficiency of the liquidity should be strategy (Resolution Liquidity Execution of the potential impacts on funding and informed by the firm’s RLEN estimate Need or RLEN). asset markets and on prime brokerage for the U.S. non-branch material The firm’s RLEN methodology should: clients, bearing in mind the objective of entities. (A) Estimate the minimum operating an orderly resolution. liquidity (MOL) needed at each U.S. IHC V. Operational subsidiary to ensure those entities could IV. Governance Mechanisms Payment, Clearing, and Settlement continue to operate, to the extent relied Activities upon in the U.S. resolution strategy, A firm should identify the governance Framework. Maintaining continuity of after implementation of the U.S. mechanisms that would ensure that payment, clearing, and settlement (PCS) resolution strategy and/or to support a communication and coordination occurs services is critical for the orderly wind-down strategy; between the boards of the U.S. IHC or a U.S. IHC subsidiary and the foreign resolution of firms that are either users (B) Provide daily cash flow forecasts 12 by U.S. IHC subsidiary to support parent to facilitate the provision of or providers, or both, of PCS services. estimation of peak funding needs to financial support, or if not forthcoming, A firm should demonstrate capabilities stabilize each entity under resolution; any preparatory resolution-related for continued access to PCS services (C) Provide a comprehensive breakout actions to facilitate an orderly essential to an orderly resolution under of all inter-affiliate transactions and resolution. its U.S. resolution strategy through a arrangements that could impact the Playbooks: Governance playbooks framework to support such access by: • 13 MOL or peak funding needs estimates should detail the board and senior Identifying clients, financial for the U.S. IHC subsidiaries; and management actions of U.S. non-branch market utilities (FMUs), and agent banks (D) Estimate the minimum amount of material entities that would be needed as key from the firm’s perspective for liquidity required at each U.S. IHC under the firm’s U.S. resolution strategy. the firm’s U.S. material entities, subsidiary to meet the MOL and peak The governance playbooks should also identified critical operations, and core needs noted above, which would inform include a discussion of (A) the firm’s business lines, using both quantitative 14 the provision of financial resources from proposed U.S. communications strategy, (volume and value) and qualitative the foreign parent to the U.S. IHC, or if both internal and external; 11 (B) the criteria; the foreign parent is unable or unwilling fiduciary responsibilities of the 12 A firm is a user of PCS services if it accesses to provide such financial support, any applicable board(s) of directors or other PCS services through an agent bank or it uses the preparatory resolution-related actions. similar governing bodies and how services of an FMU through its membership in that The MOL estimates should capture planned actions would be consistent FMU or through an agent bank. A firm is a provider U.S. IHC subsidiaries’ intraday liquidity with such responsibilities applicable at of PCS services if it provides PCS services to clients requirements, operating expenses, as an agent bank or it provides clients with access the time actions are expected to be to an FMU or agent bank through the firm’s working capital needs, and inter-affiliate taken; (C) potential conflicts of interest, membership in or relationship with that service funding frictions to ensure that U.S. IHC including interlocking boards of provider. A firm is also a provider if it provides subsidiaries could operate without directors; (D) any employee retention clients with PCS services through the firm’s own operations in the United States (e.g., payment disruption during the resolution. policy; and (E) any other limitations on The peak funding needs estimates services or custody services). the authority of the U.S. IHC and the 13 For purposes of this section V, a client is an should be projected for each U.S. IHC U.S. IHC subsidiary boards and senior individual or entity, including affiliates of the firm, subsidiary and cover the length of time management to implement the U.S. to whom the firm provides PCS services and, if the firm expects it would take to resolution strategy. All responsible credit or liquidity is offered, any related credit or stabilize that U.S. IHC subsidiary. Inter- liquidity offered in connection with those services. parties and timeframes for action should 14 In identifying entities as key, examples of affiliate funding frictions should be be identified. Governance playbooks quantitative criteria may include: For a client, taken into account in the estimation should be updated periodically for each transaction volume/value, market value of process. entity whose governing body would exposures, assets under custody, usage of PCS The firm’s forecasts of MOL and peak services, and if credit or liquidity is offered, any extension of related intraday credit or liquidity; for funding needs should ensure that U.S. 11 External communications include those with an FMU, the aggregate volumes and values of all IHC subsidiaries could operate through U.S. and foreign authorities and other external transactions processed through such FMU; and for resolution consistent with regulatory stakeholders. an agent bank, assets under custody, the value of

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• Mapping U.S. material entities, firm’s U.S. operations, and playbooks describe any account features that might identified critical operations, core should reflect any feedback received restrict the firm’s ready access to its business lines, and key clients of the during such ongoing outreach. liquidity sources. firm’s U.S. operations to both key FMUs Content Related to Users of PCS Content Related to Providers of PCS and key agent banks; and Services. Individual key FMU and key Services.16 Individual key FMU and key • Developing a playbook for each key agent bank playbooks should include: agent bank playbooks should include: FMU and key agent bank essential to an • Descriptions of the firm’s • Identification and mapping of PCS orderly resolution under its U.S. relationship as a user, including through services to the firm’s U.S. material resolution strategy that reflects the indirect access, with the key FMU or entities, identified critical operations, firm’s role(s) as a user and/or provider key agent bank and the identification and core business lines that provide of PCS services. and mapping of PCS services to the those PCS services, and a description of The framework should address direct firm’s U.S. material entities, identified the scale and the way in which each relationships (e.g., a firm’s direct critical operations, and core business provides PCS services; • membership in an FMU, a firm’s lines that use those PCS services; Identification and mapping of PCS provision of clients with PCS services • Discussion of the potential range of services to key clients of the firm’s U.S. through its own operations in the adverse actions that may be taken by operations to whom the firm’s U.S. United States, or a firm’s contractual that key FMU or key agent bank when material entities, identified critical relationship with an agent bank) and the firm is in resolution under its U.S. operations, and core business lines indirect relationships (e.g., a firm’s resolution strategy,15 the operational provide such PCS services and any provision of clients with access to the and financial impact of such actions on related credit or liquidity offered in relevant FMU or agent bank through the connection with such services; the firm’s U.S. material entities, • firm’s membership in or relationship identified critical operations, and core Discussion of the potential range of with that FMU or agent bank, or a firm’s business lines, and contingency firm contingency arrangements available U.S. affiliate and branch provision of arrangements that may be initiated by to minimize disruption to the provision U.S. material entities and key clients of the firm in response to potential adverse of PCS services to key clients of the firm’s U.S. operations, including the the firm’s U.S. operations with access to actions by the key FMU or key agent viability of transferring activity and any an FMU or agent bank). The framework bank; and related assets of key clients of the firm’s also should address the potential impact • Discussion of PCS-related liquidity U.S. operations, as well as any of any disruption to, curtailment of, or sources and uses in business-as-usual alternative arrangements that would termination of such direct and indirect (BAU), in stress, and in the resolution allow the key clients of the firm’s U.S. relationships on the firm’s U.S. material period, presented by currency type operations continued access to PCS entities, identified critical operations, (with U.S. dollar equivalent) and by services if the firm could no longer and core business lines, as well as any U.S. material entity. provide such access (e.g., due to the corresponding impact on key clients of Æ PCS Liquidity Sources: These may firm’s loss of key FMU or key agent the firm’s U.S. operations. include the amounts of intraday bank access), and the financial and Playbooks for Continued Access to extensions of credit, liquidity buffer, operational impacts of such PCS Services. The firm is expected to inflows from FMU participants, and arrangements from the firm’s provide a playbook for each key FMU prefunded amounts of key clients of the perspective; and key agent bank that addresses firm’s U.S. operations in BAU, in stress, considerations that would assist the • Descriptions of the range of and in the resolution period. The contingency actions that the firm may firm and key clients of the firm’s U.S. playbook also should describe intraday operations in maintaining continued take concerning its provision of intraday credit arrangements (e.g., facilities of the credit to key clients of the firm’s U.S. access to PCS services in the period key FMU, key agent bank, or a central leading up to and including the firm’s operations, including analysis bank) and any similar custodial quantifying the potential liquidity the resolution under its U.S. resolution arrangements that allow ready access to strategy. Each playbook should provide firm could generate by taking such a firm’s funds for PCS-related key FMU actions in stress and in the resolution analysis of the financial and operational and key agent bank obligations impact of adverse actions that may be period, such as (i) requiring key clients (including margin requirements) in all of the firm’s U.S. operations to designate taken by a key FMU or a key agent bank currencies relevant to the firm’s and contingency actions that may be or appropriately pre-position liquidity, participation, including placements of including through prefunding of taken by the firm. Each playbook also firm liquidity at central banks, key should discuss any possible alternative settlement activity, for PCS-related key FMUs, and key agent banks. FMU and key agent bank obligations at arrangements that would allow Æ PCS Liquidity Uses: These may specific material entities of the firm continued access to PCS services for the include margin and prefunding by the firm’s U.S. material entities, identified (e.g., direct members of key FMUs) or firm and key clients of the firm’s U.S. any similar custodial arrangements that critical operations and core business operations, and intraday extensions of lines, and key clients of the firm’s U.S. allow ready access to funds for such credit, including incremental amounts obligations in all relevant currencies of operations, while the firm is in required during resolution. resolution under its U.S. resolution key clients of the firm’s U.S. operations; Æ Intraday Liquidity Inflows and (ii) delaying or restricting PCS activity strategy. The firm is not expected to Outflows: The playbook should describe incorporate a scenario in which it loses the firm’s ability to control intraday 16 Where a firm is a provider of PCS services key FMU or key agent bank access into liquidity inflows and outflows and to through the firm’s own operations in the United its U.S. resolution strategy or its RLEN identify and prioritize time-specific States, the firm is expected to produce a playbook and RCEN estimates. The firm should payments. The playbook also should for the U.S. material entities that provide those continue to engage with key FMUs, key services, addressing each of the items described under ‘‘Content Related to Providers of PCS agent banks, and key clients of the 15 Examples of potential adverse actions may Services,’’ which include contingency arrangements include increased collateral and margin to permit the firm’s key clients of the firm’s U.S. cash and securities settled, and extensions of requirements and enhanced reporting and operations to maintain continued access to PCS intraday credit. monitoring. services.

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of key clients of the firm’s U.S. PCS obligations, including any change Derivatives Association Master operations; and (iii) restricting, in demand for and sources of liquidity Agreements and the Credit Support imposing conditions upon (e.g., needed to meet such obligations. Annexes, such as termination events, for requiring collateral), or eliminating the Managing, Identifying, and Valuing triggers that may be breached as a result provision of intraday credit or liquidity Collateral: The firm is expected to have of changes in market conditions; to key clients of the firm’s U.S. and describe its capabilities to manage, • Identify legal and operational operations; and identify, and value the collateral that differences and potential challenges in • Descriptions of how the firm will the U.S. non-branch material entities managing collateral within specific communicate to key clients of the firm’s receive from and post to external parties jurisdictions, agreement types, U.S. operations the potential impacts of and affiliates. Specifically, the firm counterparty types, collateral forms, or implementation of any identified should: other distinguishing characteristics; and contingency arrangements or • Be able to query and provide • Forecast changes in collateral alternatives, including a description of aggregate statistics for all qualified requirements and cash and non-cash the firm’s methodology for determining financial contracts concerning cross- collateral flows under a variety of stress whether any additional communication default clauses, downgrade triggers, and scenarios. should be provided to some or all key other key collateral-related contract Shared and Outsourced Services: The clients of the firm’s U.S. operations (e.g., terms—not just those terms that may be firm should maintain a fully actionable due to BAU usage of that access and/or impacted in an adverse economic implementation plan to ensure the related intraday credit or liquidity of the environment—across contract types, continuity of shared services that key client of the firm’s U.S. operations), business lines, legal entities, and support identified critical operations 24 and the expected timing and form of jurisdictions; and robust arrangements to support the such communication. • Be able to track both firm collateral continuity of shared and outsourced Capabilities. Firms are expected to sources (i.e., counterparties that have services, including, without limitation, have and describe capabilities to pledged collateral) and uses (i.e., appropriate plans to retain key understand, for each U.S. material counterparties to whom collateral has personnel relevant to the execution of entity, its obligations and exposures been pledged) at the CUSIP level on at the firm’s strategy. If a material entity associated with PCS activities, least a t+1 basis; provides shared services that support including contractual obligations and • Have robust risk measurements for identified critical operations,25 and the commitments. For example, firms cross-entity and cross-contract netting, continuity of these shared services relies should be able to: including consideration of where on the assumed cooperation, • Track the following items by U.S. collateral is held and pledged; forbearance, or other non-intervention material entity and, with respect to • Be able to identify CUSIP and asset of regulator(s) in any jurisdiction, the customers, counterparties, and agents class level information on collateral Plan should discuss the extent to which and service providers, by location/ pledged to specific central the resolution or insolvency of any other jurisdiction: counterparties by legal entity on at least group entities operating in that same Æ PCS activities, with each activity a t+1 basis; jurisdiction may adversely affect the • mapped to the relevant material entities Be able to track and report on inter- assumed cooperation, forbearance, or and core business lines; 17 branch collateral pledged and received other regulatory non-intervention. If a Æ Customers and counterparties for on at least a t+1 basis and have clear material entity providing shared PCS activities, including values and policies explaining the rationale for services that support identified critical volumes of various transaction types, as such inter-branch pledges, including operations is located outside of the well as used and unused capacity for all any regulatory considerations; and United States, the Plan should discuss lines of credit; 18 • Have a comprehensive collateral Æ how the firm will ensure the operational Exposures to and volumes management policy that outlines how continuity of such shared services transacted with FMUs, nostro agents, the firm as a whole approaches through resolution. 19 and custodians; and collateral and serves as a single source The firm should (A) maintain an Æ 23 Services provided and service level for governance. identification of all shared services that agreements, as applicable, for other In addition, as of the conclusion of support identified critical operations; current agents and service providers any business day, the firm should be 20 (B) maintain a mapping of how/where (internal and external). able to: these services support U.S. core • Assess the potential effects of • Identify the legal entity and business lines and identified critical adverse actions by FMUs, nostro agents, geographic jurisdiction where operations; (C) incorporate such custodians, and other agents and service counterparty collateral is held; mapping into legal entity rationalization providers, including suspension or • Document all netting and re- criteria and implementation efforts; and termination of membership or services, hypothecation arrangements with (D) mitigate identified continuity risks on the firm’s U.S. operations and affiliates and external parties, by legal through establishment of service-level customers and counterparties of those entity; and agreements (SLAs) for all critical shared U.S. operations; 21 • Track and manage collateral • Develop contingency arrangements requirements associated with services. SLAs should fully describe the in the event of such adverse actions; 22 counterparty credit risk exposures services provided, reflect pricing and between affiliates, including foreign considerations on an arm’s-length basis • Quantify the liquidity needs and branches. operational capacity required to meet all At least on a quarterly basis, the firm where appropriate, and incorporate should be able to: 24 ‘‘Shared services that support identified critical 17 12 CFR 243.5(e)(12); 12 CFR 381.5(e)(12). • Review the material terms and operations’’ or ‘‘critical shared services’’ are those 18 Id. provisions of International Swaps and that support identified critical operations 19 12 CFR 252.156(g). conducted in whole or in material part in the 20 12 CFR 243.5(f)(l)(i); 12 CFR 381.5(f)(1)(i). 23 The policy may reference subsidiary or related United States. 21 12 CFR 252.156(e). policies already in place, as implementation may 25 This should be interpreted to include data 22 Id. differ based on business line or other factors. access and intellectual property rights.

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appropriate terms and conditions to (A) operations.27 Examples may include legal entities and business lines to prevent automatic termination upon personnel, facilities, systems, data improve the resolvability of U.S. certain resolution-related events and (B) warehouses, and intellectual property; operations under different market achieve continued provision of such and conditions. LER Criteria should govern services during resolution.26 The firm • Maintain current cost estimates for the corporate structure and should also store SLAs in a central implementing such strategies and arrangements between the U.S. repository or repositories located in or contingency arrangements. subsidiaries and U.S. branches in a way immediately accessible from the U.S. at that facilitates resolvability of the firm’s VI. Branches all times, including in resolution (and U.S. operations as the firm’s U.S. subject to enforceable access Continuity of Operations: If the Plan activities, technology, business models, arrangements) in a searchable format. In assumes that federal or state regulators, or geographic footprint change over addition, the firm should ensure the as applicable, do not take possession of time. financial resilience of internal shared any U.S. branch that is a material entity, Specifically, application of the criteria service providers by maintaining the Plan must support that assumption. should: working capital for six months (or For any U.S. branch that is significant (A) Ensure that the allocation of through the period of stabilization as to the activities of an identified critical activities across the firm’s U.S. branches required in the firm’s U.S. resolution operation, the Plan should describe and and U.S. non-branch material entities strategy) in such entities sufficient to demonstrate how the branch would support the firm’s U.S. resolution cover contract costs, consistent with the continue to facilitate FMU access for strategy and minimize risk to U.S. U.S. resolution strategy. The firm identified critical operations and meet financial stability in the event of should demonstrate that such working funding needs. Such a U.S. branch resolution; capital is held in a manner that ensures would also be required to describe how (B) Facilitate the recapitalization and its availability for its intended purpose. it would meet supervisory requirements liquidity support of U.S. IHC The firm should identify all service imposed by state regulators or the subsidiaries, as required by the firm’s providers and critical outsourced appropriate Federal banking agency, as U.S. resolution strategy. Such criteria services that support identified critical appropriate, including maintaining a net should include clean lines of ownership operations and identify any that could due to position and complying with and clean funding pathways between not be promptly substituted. The firm heightened asset maintenance the foreign parent, the U.S. IHC, and 28 should (A) evaluate the agreements requirements. In addition, the plan U.S. IHC subsidiaries; governing these services to determine should describe how such a U.S. (C) Facilitate the sale, transfer, or whether there are any that could be branch’s third-party creditors would be wind-down of certain discrete terminated upon commencement of any protected such that the state regulator or operations within a timeframe that resolution despite continued appropriate Federal banking agency would meaningfully increase the performance; and (B) update contracts would allow the branch to continue likelihood of an orderly resolution in to incorporate appropriate terms and operations. the United States, including provisions conditions to prevent automatic Impact of the Cessation of Operations: for the continuity of associated services termination upon commencement of The firm must provide an analysis of the and mitigation of financial, operational, any resolution proceeding and facilitate impact of the cessation of operations of and legal challenges to separation and continued provision of such services. any U.S. branch that is significant to the disposition; Relying on entities projected to survive activities of an identified critical (D) Adequately protect U.S. during resolution to avoid contract operation on the firm’s FMU access and subsidiary insured depository termination is insufficient to ensure identified critical operations, even if institutions from risks arising from the continuity. In the Plan, the firm should such scenario is not contemplated as activities of any nonbank U.S. document the amendment of any such part of the U.S. resolution strategy. The subsidiaries (other than those that are agreements governing these services. analysis should include a description of subsidiaries of an insured depository The Plan must also discuss how identified critical operations could institution); and arrangements to ensure the operational be transferred to a U.S. IHC subsidiary (E) Minimize complexity that could continuity of shared services that or sold in resolution, the obstacles impede an orderly resolution in the support identified critical operations in presented by the cessation of shared United States and minimize redundant resolution in the event of the disruption services that support identified critical and dormant entities. of those shared services. operations provided by any U.S. branch These criteria should be built into the that is a material entity, and mitigants firm’s ongoing process for creating, A firm is expected to have robust that could address such obstacles in a maintaining, and optimizing the firm’s arrangements in place for the continued timely manner. U.S. structure and operations on a provision of shared or outsourced continuous basis. services needed to maintain identified VII. Legal Entity Rationalization critical operations. For example, firms Legal Entity Rationalization Criteria VIII. Derivatives and Trading Activities should: (LER Criteria): A firm should develop A Specified FBO’s plan should • Evaluate internal and external and implement legal entity address the following areas. dependencies and develop documented rationalization criteria that support the Booking Practices strategies and contingency arrangements firm’s U.S. resolution strategy and for the continuity or replacement of the minimize risk to U.S. financial stability A firm should have booking practices shared and outsourced services that are in the event of resolution. LER Criteria commensurate with the size, scope, and necessary to maintain identified critical should consider the best alignment of complexity of its U.S. derivatives and trading activities.29 The following 26 The firm should consider whether these SLAs 27 12 CFR 243.5(g); 12 CFR 381.5(g). should be governed by the laws of a U.S. state and 28 Firms should take into consideration historical 29 ‘‘U.S. derivatives and trading activities’’, means expressly subject to the jurisdiction of a court in the practice, by applicable regulators, regarding asset all derivatives and linked non-derivatives trading U.S. maintenance requirements imposed during stress. Continued

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booking practices-related capabilities its U.S. derivatives and trading activities in the period leading up to and during should be addressed in a firm’s during the execution of its U.S. the execution of its U.S. resolution resolution plan: resolution strategy.32 strategy by maintaining a monitoring Derivatives and trading booking Derivatives and trading entity analysis framework for U.S. derivatives and framework. A firm should have a and reporting. A firm should have the trading activities, which consists of at comprehensive booking model ability to identify, assess, and report on least the following two components: framework that articulates the each U.S. entity that originates or 1. A method for identifying U.S. principles, rationales, and approach to otherwise conducts (in whole or in derivatives and trading activities, and implementing its booking practices for material part) any significant aspect of measuring, monitoring, and reporting on all of its U.S. derivatives and trading the firm’s U.S. derivatives and trading those activities on a business line and activities. The framework and its activities (a derivatives or trading legal entity basis; and underlying components should be entity). First, the firm’s resolution plan 2. A method for identifying, assessing, documented and adequately supported should describe its method (which may and reporting the potential impact on (i) by internal controls (e.g., procedures, include both qualitative and clients and counterparties of U.S. systems, processes). Taken together, the quantitative criteria) for evaluating the entities that conduct the U.S. booking framework and its components significance of each derivatives or derivatives and trading activities and (ii) should provide transparency with trading entity both with respect to the any related risk transfer arrangements 34 respect to (i) what is being booked (e.g., firm’s current U.S. derivatives and among and between U.S. entities and product, counterparty), (ii) where it is trading activities and its U.S. resolution their non-U.S. affiliates. being originated and booked (e.g., legal strategy.33 Second, a firm’s resolution entity), (iii) by whom it is booked (e.g., plan should demonstrate (including Prime Brokerage Customer Account business or trading desk), (iv) why it is through use of illustrative samples) the Transfers booked that way (e.g., drivers or firm’s ability to readily generate current A firm should have the operational rationales for that arrangement), and (v) derivatives or trading entity profiles that capacity to facilitate the orderly transfer what controls the firm has in place to (i) cover all derivatives or trading of U.S. prime brokerage accounts,35 to monitor and manage those practices entities, (ii) are reportable in a peer prime brokers in periods of (e.g., governance or information consistent manner, and (iii) include material financial distress and during systems).30 information regarding current legal the execution of its U.S. resolution The firm’s resolution plan should ownership structure, business activities strategy. The firm’s plan should include include detailed descriptions of the and volume, and risk profile of the an assessment of how it would transfer framework and each of its material entity (including relevant risk transfer such accounts. This assessment should components. In particular, a firm’s arrangements). be informed by clients’ relationships resolution plan should include U.S. Activities Monitoring with other prime brokers, the use of descriptions of documented booking automated and manual transaction models covering its U.S. derivatives and A firm should be able to assess how processes, clients’ overall long and short trading activities.31 These descriptions the management of U.S. derivatives and positions as facilitated by the firm, and should provide clarity with respect to trading activities could be affected in the liquidity of clients’ portfolios. The the underlying booking flows (e.g., the the period leading up to and during the assessment should also analyze the risks mapping of trade flows based on execution of its U.S. resolution strategy, and loss mitigants of customer-to- multiple trade characteristics as including disruptions that could affect customer internalization (e.g., the decision points that determine on which materially the funding or operations of inability to fund customer longs with entity a trade is directly booked and the the U.S. entities that conduct the U.S. customer shorts) and operational applicability of any risk transfer derivatives and trading activities or challenges (including insufficient arrangements). Furthermore, a firm’s their clients and counterparties. staffing) that the firm may experience in Therefore, a firm should have resolution plan should describe its end- effecting the scale and speed of prime capabilities to provide timely to-end booking and reporting processes, brokerage account transfers envisioned transparency into the management of its including a description of the current under the firm’s U.S. resolution strategy. U.S. derivatives and trading activities, scope of automation (e.g., automated In addition, a firm should describe trade flows, detective monitoring) of the and demonstrate its ability to segment 32 Effective preventative (up-front) and detective systems controls applied to the firm’s and analyze the quality and documented booking models. The plan (post-booking) controls embedded in a firm’s booking processes can help avoid and/or timely composition of U.S. prime brokerage should also discuss why the firm remediate trades that do not align with a account balances based on a set of well- believes its current (or planned) scope documented booking model or related risk limit. defined and consistently applied of automation is sufficient for managing Firms typically use a combination of manual and automated control functions. Although automation segmentation criteria (e.g., size, single- may not be best suited for all control functions, as prime, platform, use of leverage, non- activities conducted on behalf of the firm, its compared to manual methods, it can improve rehypothecatable securities, liquidity of clients, or its counterparties that are booked into the consistency and traceability with respect to booking firm’s U.S. IHC subsidiaries and material entity practices. However, non-automated methods also underlying assets). The capabilities branches (U.S. entities). The firm may define linked can be effective when supported by other internal should cover U.S. prime brokerage non-derivatives trading activities based on its controls (e.g., robust detective monitoring, account balances and the resulting overall business and resolution strategy. escalation protocols). segments should represent a range in 30 The description of controls should include any 33 The firm should leverage any existing methods components of any market, credit, or liquidity risk and criteria it uses for other entity assessments (e.g., management framework that is material to the legal entity rationalization or the prepositioning of 34 For example, risk transfer arrangements might management of the firm’s U.S. derivatives and internal loss-absorbing resources). The firm’s include transfer pricing, profit sharing, loss trading activities. method for determining the significance of limiting, or intragroup hedging arrangements. 31 The booking models should represent the vast derivatives or trading entities may diverge from the 35 ‘‘U.S. prime brokerage account’’ or ‘‘U.S. prime majority (e.g., 95 percent) of a firm’s U.S. parameters for material entity designation under the brokerage account balances’’ should include the derivatives and trading activities, measured by, for Rule (i.e., entities significant to the activities of an account positions and balances of a client of the example, trade notional and gross market value (for identified critical operation or core business line); firm’s U.S. prime brokerage business who signs a derivatives) and client positions and balances (for however, any differences should be adequately prime brokerage agreement with a U.S. material prime brokerage client accounts). supported and explained. entity.

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potential transfer speed (e.g., from derivatives strategy, a firm should apply the resolution period; and (ii) if fastest to longest to transfer, from most the following assumption constraints: exercising such right would liquid to least liquid). The selected • OTC derivatives market access: At economically benefit the counterparty segmentation criteria should reflect or before the start of the resolution (counterparty-initiated termination). characteristics 36 that the firm believes period, each surviving derivatives • Time horizon: The duration of the could affect the speed at which the U.S. subsidiary should be assumed to lack an resolution period should be between 12 prime brokerage account would be investment grade credit rating (e.g., and 24 months. The resolution period transferred to an alternate prime broker. unrated or downgraded below begins immediately after the U.S. IHC investment grade). Each surviving bankruptcy filing and extends through Portfolio Segmentation derivatives subsidiary also should be the completion of the U.S. resolution A firm should have the capabilities to assumed to have failed to establish or strategy.42 produce analysis that reflects reestablish investment grade status for A firm’s analysis of its U.S. derivatives portfolio 37 segmentation the duration of the resolution period, derivatives strategy should take into and differentiation of assumptions, unless the plan provides well-supported account (i) the starting profile of any taking into account trade-level analysis to the contrary. As the derivatives portfolio of each surviving characteristics. More specifically, a firm subsidiary is not investment grade, it derivatives subsidiary (e.g., nature, should have systems capabilities that further should be assumed that each concentration, maturity, clearability, would allow it to produce a spectrum of surviving derivatives subsidiary has no liquidity of positions); (ii) the profile derivatives portfolio segmentation access to bilateral OTC derivatives and function of any surviving analysis using multiple segmentation markets and must use exchange-traded derivatives subsidiary during the dimensions for each U.S. entity with a or centrally cleared instruments for any resolution period; (iii) the means, derivatives portfolio—namely, (1) new hedging needs that arise during the challenges, and capacity of the trading desk or product, (2) cleared vs. resolution period. Nevertheless, a firm surviving derivatives subsidiary to clearable vs. non-clearable trades, (3) may assume the ability to engage in manage and de-risk its derivatives counterparty type, (4) currency, (5) certain risk-reducing derivatives trades portfolios (e.g., method for timely maturity, (6) level of collateralization, with bilateral OTC derivatives segmenting, packaging, and selling the 38 and (7) netting set. A firm should also counterparties during the resolution derivatives positions; challenges with have the capabilities to segment and period to facilitate novations with third novating less liquid positions; re- analyze the full contractual maturity parties and to close out inter-affiliate hedging strategy); (iv) the financial and (run-off) profile of the derivatives trades.40 operational resources required to effect portfolios in its U.S. entities. The firm’s • Early exits (break clauses): A firm the derivatives strategy; and (v) any resolution plan should describe and should assume that counterparties (both potential residual portfolio (further demonstrate the firm’s ability to external and affiliates) will exercise any discussed below). In addition, the firm’s segment and analyze the derivatives contractual termination or other right, resolution plan should address the portfolios booked into its U.S. entities including any rights stayed by contract following areas in the analysis of its using the relevant segmentation (including amendments) or in derivatives strategy: dimensions and to report the results of compliance with the rules establishing Forecasts of resource needs. The such segmentation and analysis. restrictions on qualified financial forecasts of capital and liquidity Derivatives Stabilization and De-Risking contracts of the Board, the FDIC, or the resource needs of U.S. IHC subsidiaries Strategy Office of the Comptroller of the required to support adequately the Currency 41 or any other regulatory firm’s U.S. derivatives strategy should To the extent the U.S. resolution be incorporated into the firm’s RCEN strategy assumes the continuation of a requirements, (i) that is available to the counterparty at or following the start of and RLEN estimates for its overall U.S. U.S. IHC subsidiary with a derivatives resolution strategy. These include, for portfolio after the entry of the U.S. IHC example, the costs and liquidity flows into a U.S. bankruptcy proceeding (e.g., active wind-down) or an alternative, third strategy so long as the firm’s resolution plan resulting from (i) the close-out of OTC (surviving derivatives subsidiary), the adequately supports the execution of the chosen derivatives, (ii) the hedging of firm’s plan should provide a detailed strategy. For example, a firm may choose a going- concern scenario (e.g., surviving derivatives derivatives portfolios, (iii) the analysis of the strategy to stabilize and quantified losses that could be incurred de-risk any derivatives portfolio of the subsidiary reestablishes investment grade status and does not enter any wind-down) as its due to basis and other risks that would surviving derivatives subsidiary (U.S. derivatives strategy. Likewise, a firm may choose to result from hedging with only exchange- derivatives strategy) that has been adopt a combination of going-concern and accelerated de-risking scenarios as its U.S. traded and centrally cleared instruments incorporated into its U.S. resolution in a severely adverse stress strategy.39 In developing its U.S. derivatives strategy. For example, the U.S. derivatives strategy could be a stabilization scenario environment, and (iv) operational for the U.S. bank entity and an accelerated de- 43 36 costs. For example, relevant characteristics might risking scenario for U.S. broker-dealer entities. Sensitivity analysis. A firm should include product, size, clearability, currency, 40 A firm may engage in bilateral OTC derivatives maturity, level of collateralization, and other risk trades with, for example, (i) external counterparties, have a method to apply sensitivity characteristics. to effect the novation of the firm’s side of a 37 A firm’s derivatives portfolios include its derivatives contract to a new, acquiring 42 The firm may consider a resolution period of derivatives positions and linked non-derivatives counterparty; and (ii) inter-affiliate counterparties, less than 12 months as long as the length of the trading positions. where the trades with inter-affiliate counterparties resolution period is adequately supported by the 38 The enumerated segmentation dimensions are do not materially increase either the credit exposure firm’s analysis of the size, composition, complexity, not intended as an exhaustive list of relevant of any participating counterparty or the market risk and maturity profile of the derivatives portfolios in dimensions. With respect to any product or asset of any such counterparty on a standalone basis, its U.S. IHC subsidiaries. class, a firm may have reasons for not capturing after taking into account any hedging with 43 A firm may choose not to isolate and separately data on (or not using) one or more of the exchange-traded and centrally-cleared instruments. model the operational costs solely related to enumerated segmentation dimensions. In that case, The firm should provide analysis to support the risk executing its derivatives strategy. However, the firm however, the firm should explain those reasons. of the trade on the basis of information that would should provide transparency around operational 39 Subject to the relevant constraints, a firm’s U.S. be known to the firm at the time of the transaction. cost estimation at a more granular level than derivatives strategy may take the form of a going- 41 See 12 CFR part 47 (OCC); part 252, subpart I material entity (e.g., business line level within a concern strategy, an accelerated de-risking strategy (Board); part 382 (FDIC). material entity, subject to wind-down).

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analyses to the key drivers of the risk of serious adverse effects on U.S. States or any other government to the derivatives-related costs and liquidity financial stability and on the orderly firm or its subsidiaries to prevent the flows under its U.S. resolution strategy. execution of the firm’s U.S. resolution failure of the firm. A firm’s resolution plan should describe strategy. In particular, the firm should 3. The firm should not assume that it its method for (i) evaluating the provide an analysis of the potential will be able to sell identified critical materiality of assumptions and (ii) impacts on funding markets, on operations or core business lines, or that identifying those assumptions (or underlying asset markets, on clients and unsecured funding will be available combinations of assumptions) that counterparties (including affiliates), and immediately prior to filing for constitute the key drivers for its on the firm’s U.S. resolution strategy. bankruptcy. forecasts of derivatives-related 4. The Plan should assume the Dodd- operational and financial resource needs IX. Format and Structure of Plans Frank Act Stress Test (DFAST) severely under the U.S. resolution strategy. In Format of Plan adverse scenario for the first quarter of addition, using its U.S. resolution the calendar year in which the Plan is Executive Summary. The Plan should strategy as a baseline, the firm’s submitted is the domestic and contain an executive summary resolution plan should describe and international economic environment at consistent with the Rule, which must demonstrate its approach to testing the the time of the firm’s failure and include, among other things, a concise sensitivities of the identified key drivers throughout the resolution process. description of the key elements of the and the potential impact on its forecasts 5. The resolution strategy may be of resource needs.44 firm’s U.S. strategy for an orderly based on an idiosyncratic event or Potential residual derivatives resolution. In addition, the executive action. The firm should justify use of portfolio. A firm’s resolution plan summary should include a discussion of that assumption, consistent with the should include a method for estimating the firm’s assessment of any conditions of the economic scenario. the composition of any potential impediments to the firm’s U.S. 6. Within the context of the applicable residual derivatives portfolio resolution strategy and its execution, as idiosyncratic scenario, markets are transactions booked in a U.S. IHC well as the steps it has taken to address functioning and competitors are in a subsidiary remaining at the end of the any identified impediments. position to take on business. If a firm’s resolution period under its U.S. Narrative. The Plan should include a Plan assumes the sale of assets, the firm resolution strategy. The firm’s plan also strategic analysis consistent with the should take into account all issues should provide detailed descriptions of Rule. This analysis should take the form surrounding its ability to sell in market the trade characteristics used to identify of a concise narrative that enhances the conditions present in the applicable such potential residual portfolio and of readability and understanding of the economic condition at the time of sale the resulting trades (or categories of firm’s discussion of its U.S. strategy for (i.e., the firm should take into trades).45 A firm should assess the risk orderly resolution in bankruptcy or consideration the size and scale of its profile of such potential residual other applicable insolvency regimes operations as well as issues of portfolio (including its anticipated size, (Narrative). The Narrative also should separation and transfer.) composition, complexity, and include a high-level discussion of how 7. The firm should not assume any counterparties), and the potential the firm is addressing key waivers of section 23A or 23B of the counterparty and market impacts of vulnerabilities jointly identified by the Federal Reserve Act in connection with non-performance by the firm on the Agencies. This is not an exhaustive list the actions proposed to be taken prior stability of U.S. financial markets (e.g., and does not preclude identification of to or in resolution. on funding markets, on underlying asset further vulnerabilities or impediments. 8. The firm may assume that its markets, on clients and counterparties). Appendices. The Plan should contain depository institutions will have access Non-surviving entity analysis. To the a sufficient level of detail and analysis to the Discount Window only for a few extent the U.S. resolution strategy to substantiate and support the strategy days after the point of failure to assumes a U.S. IHC subsidiary with a described in the Narrative. Such detail facilitate orderly resolution. However, derivatives portfolio enters its own and analysis should be included in the firm should not assume its resolution proceeding after the entry of appendices that are distinct from and subsidiary depository institutions will the U.S. IHC into a U.S. bankruptcy clearly referenced in the related parts of have access to the Discount Window proceeding (a non-surviving derivatives the Narrative (Appendices). while critically undercapitalized, in subsidiary), the firm should provide a Public Section. The Plan must be FDIC receivership, or operating as a detailed analysis of how the non- divided into a public section and a bridge bank, nor should it assume any surviving derivatives subsidiary’s confidential section consistent with the lending from a Federal Reserve credit resolution can be accomplished within requirements of the Rule. facility to a non-bank affiliate. a reasonable period of time and in a Other Informational Requirements. Financial Statements and Projections manner that substantially mitigates the The Plan must comply with all other informational requirements of the Rule. The Plan should include the actual 44 For example, key drivers of derivatives-related The firm may incorporate by reference balance sheet for each material entity costs and liquidity flows might include the timing previously submitted information as and the consolidating balance sheet of derivatives unwind, cost of capital-related adjustments between material entities as assumptions (e.g., target return on equity, discount provided in the Rule. rate, weighted average life, capital constraints, tax well as pro forma balance sheets for rate), operational cost reduction rate, and Guidance Regarding Assumptions each material entity at the point of operational capacity for novations. Other examples 1. The Plan should be based on the failure and at key junctures in the of key drivers likely also include central counterparty margin flow assumptions and risk- current state of the applicable legal and execution of the resolution strategy. It weighted asset forecast assumptions. policy frameworks. Pending legislation should also include projected 45 If, under the firm’s U.S. resolution strategy, any or regulatory actions may be discussed statements of sources and uses of funds derivatives portfolios are transferred during the as additional considerations. for the interim periods. The pro forma resolution period by way of a line of business sale 2. The firm must submit a plan that financial statements and accompanying (or similar transaction), then those portfolios nonetheless should be included within the firm’s does not rely on the provision of notes in the Plan must clearly evidence potential residual portfolio analysis. extraordinary support by the United the failure trigger event; the Plan’s

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assumptions; and any transactions that the consequences for the firm’s U.S. The questions in this Appendix: are critical to the execution of the Plan’s resolution strategy if specific actions in • Comprise common questions asked preferred strategy, such as each jurisdiction were not taken, by different covered companies. Not recapitalizations, the creation of new delayed, or forgone, as relevant. every question is applicable to every legal entities, transfers of assets, and X. Public Section firm; not every aspect of the guidance asset sales and unwinds. applies to each firm’s preferred strategy/ The purpose of the public section is Material Entities structure; and to inform the public’s understanding of • Reflect updated references to Material entities should encompass the firm’s resolution strategy and how it correspond to this final guidance for the those entities, including subsidiaries, works. Specified FBOs (Final Guidance). branches and agencies (collectively, The public section should discuss the As indicated below, those questions Offices), which are significant to the steps that the firm is taking to improve and answers that are deemed to be no activities of an identified critical resolvability under the U.S. Bankruptcy longer meaningful or relevant have not operation or core business line. If the Code. The public section should been consolidated in this Appendix and abrupt disruption or cessation of a core provide background information on are superseded. business line might have systemic each material entity and should be consequences to U.S. financial stability, enhanced by including the firm’s Capital the entities essential to the continuation rationale for designating material CAP 1. Not consolidated of such core business line should be entities. The public section should also CAP 2. Definition of ‘‘Well-Capitalized’’ considered for material entity discuss, at a high level, the firm’s intra- Status designation. Material entities should group financial and operational interconnectedness (including the types Q. How should firms apply the term include the following types of entities: ‘‘well-capitalized’’? a. Any Office, wherever located, that of guarantees or support obligations in A. U.S. non-branch material entities is significant to the activities of an place that could impact the execution of must comply with the capital identified critical operation. the firm’s strategy). There should also be b. Any Office, wherever located, a high-level discussion of the liquidity requirements and expectations of their whose provision or support of global resources and loss-absorbing capacity of primary regulator. U.S. non-branch treasury operations, funding, or the U.S. IHC. material entities should be recapitalized liquidity activities (inclusive of The discussion of strategy in the to meet jurisdictional requirements and intercompany transactions) is public section should broadly explain to maintain market confidence as significant to the activities of an how the firm has addressed any required under the U.S. resolution identified critical operation. deficiencies, shortcomings, and other strategy. c. Any Office, wherever located, that key vulnerabilities that the Agencies CAP 3. RCEN Relationship to DFAST would provide material operational have identified in prior Plan Severely Adverse Scenario support in resolution (key personnel, submissions. For each material entity, it Q. How should the firm’s RCEN and information technology, data centers, should be clear how the strategy RLEN estimates relate to the DFAST real estate or other shared services) to provides for continuity, transfer, or Severely Adverse scenario? Can those the activities of an identified critical orderly wind-down of the entity and its estimates be recalibrated in actual stress operation. operations. There should also be a conditions? d. Any Office, wherever located, that description of the resulting organization A. For resolution plan submission is engaged in derivatives booking upon completion of the resolution purposes, the estimation of RLEN and activity that is significant to the process. RCEN should assume macroeconomic The public section may note that the activities of an identified critical conditions consistent with the DFAST resolution plan is not binding on a operation, including those that conduct Severely Adverse scenario. However, bankruptcy court or other resolution either the internal hedge side or the the RLEN and RCEN methodologies authority and that the proposed failure client-facing side of a transaction. should have the flexibility to scenario and associated assumptions are e. Any Office, wherever located, incorporate macroeconomic conditions hypothetical and do not necessarily engaged in asset custody or asset that may deviate from the DFAST reflect an event or events to which the management that are significant to the Severely Adverse scenario in order to firm is or may become subject. activities of an identified critical facilitate execution of the U.S. operation. Appendix: Frequently Asked Questions resolution strategy. f. Any Office, wherever located, holding licenses or memberships in In March 2017, the Agencies issued CAP 4. Not Consolidated clearinghouses, exchanges, or other guidance for use in developing the 2018 Liquidity FMUs that are significant to the resolution plan submissions by certain LIQ 1. Inter-Company ‘‘Frictions’’ activities of an identified critical foreign banking organizations. operation. In response to frequently asked Q. Can the Agencies clarify what For each material entity (including a questions regarding that guidance from kinds of frictions might occur between branch), the Plan should enumerate, on the recipients of that guidance, Board affiliates beyond regulatory ring- a jurisdiction-by-jurisdiction basis, the and FDIC staff jointly developed fencing? specific mandatory and discretionary answers and provided those answers to A. Frictions are any impediments to actions or forbearances that regulatory the guidance recipients in 2017 so that the free flow of funds, collateral and and resolution authorities would take they could take this information into other transactions between material during resolution, including any account in developing their next entities. Examples include regulatory, 46 regulatory filings and notifications that resolution plan submissions. legal, financial (i.e., tax consequences), would be required as part of the U.S. market, or operational constraints or 46 The FAQs represent the views of staff of the requirements. resolution strategy, and explain how the Board of Governors of the Federal Reserve System Plan addresses the actions and and the Federal Deposit Insurance Corporation and LIQ 2. Distinction between Liquidity forbearances. The Plan should describe do not bind the Board or the FDIC. Forecasting Periods

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Q1. How long is the stabilization A2. Yes, the components of the MOL value haircuts that may be required. period? estimates for each surviving U.S. IHC Assumptions for the monetization of A1. The stabilization period begins subsidiary should be transparent and non-HQLA should be consistent with immediately after the U.S. IHC supported. the U.S. resolution strategy for each U.S. bankruptcy filing and extends until each Q3. Can MOLs decrease as surviving IHC subsidiary. material entity reestablishes market U.S. IHC subsidiaries wind down? LIQ 9. Components of Minimum confidence. The stabilization period A3. MOL estimates can decline as Operating Liquidity may not be less than 30 days. The long as they are sufficiently supported Q. Do the agencies have particular reestablishment of market confidence by the firm’s methodology and definitions of the ‘‘intraday liquidity may be reflected by the maintaining, assumptions. requirements,’’ ‘‘operating expenses,’’ reestablishing, or establishing of LIQ 5. Not Consolidated and ‘‘working capital needs’’ investment grade ratings or the LIQ 6. Inter-Affiliate Transactions with components of minimum operating equivalent financial condition for each Optionality liquidity (MOL) estimates? entity. The stabilization period may Q. How should firms treat an inter- A. No. A firm may use its internal vary by material entity, given affiliate transaction with an embedded definitions of the components of MOL differences in regulatory, counterparty, option that may affect the contractual estimates. The components of MOL and other stakeholder interests in each maturity date? estimates should be well-supported by a entity. firm’s internal methodologies and Q2. Not Consolidated. A. For the purpose of calculating a firm’s net liquidity position at a material calibrated to the specifics of each U.S. Q3. What is the resolution period? IHC subsidiary. A3. The resolution period begins entity, the RLEN model should assume immediately after the U.S. IHC’s that these transactions mature at the LIQ 10. RLEN Model and Net Revenue bankruptcy filing and extends through earliest possible exercise date; this Recognition the completion of the U.S. strategy. adjusted maturity should be applied Q. Can firms assume in the RLEN After the stabilization period (see ‘‘LIQ symmetrically to both material entities model that cash-based net revenue 2. Distinction between Liquidity involved in the transaction. generated by U.S. IHC subsidiaries after Forecasting Periods,’’ Question 1, LIQ 7. Stabilization and Regulatory the U.S. IHC’s bankruptcy filing is regarding ‘‘stabilization period’’), Liquidity Requirements available to offset estimated liquidity financial statements and projections Q. As it relates to the RLEN model needs? may be provided at quarterly intervals and actions necessary to re-establish A. Yes. Firms may incorporate cash through the remainder of the resolution market confidence, what assumptions revenue generated by U.S. IHC period. should firms make regarding subsidiaries in the RLEN model. Cash LIQ 3. Inter-Affiliate Transaction compliance with regulatory liquidity revenue projections should be Assumptions requirements? conservatively estimated and consistent A. Firms should consider the with the operating environment and the Q. Does inter-affiliate funding refer to U.S. strategy for each U.S. IHC all kinds of intercompany transactions, applicable regulatory expectations for each U.S. IHC subsidiary to achieve the subsidiary. including both unsecured and secured? LIQ 11. RLEN Model and Inter-Affiliate A. Yes. stabilization needed to execute the U.S. Frictions LIQ 4. RLEN and Minimum Operating resolution strategy. Firms’ assumptions Q. Can a firm modify its assumptions Liquidity (MOL) in the RLEN model regarding the actions necessary to reestablish market regarding one or more inter-affiliate Q1. How should firms distinguish confidence during the stabilization frictions during the stabilization or post- between the minimum operating period may vary by U.S. IHC subsidiary, stabilization period in the RLEN model? liquidity (MOL) and peak funding needs for example, based on differences in A. Once a U.S. IHC subsidiary has during the RLEN period? regulatory, counterparty, other achieved market confidence necessary A1. The peak funding needs represent stakeholder interests, and based on the for stabilization consistent with the U.S. the peak cumulative net out-flows U.S. resolution strategy for each U.S. resolution strategy, a firm may modify during the stabilization period. The IHC subsidiary. See also ‘‘LIQ 2. one or more inter-affiliate frictions, components of peak funding needs, Distinction between Liquidity provided the firm provides sufficient including the monetization of assets and Forecasting Periods.’’ analysis to support this assumption. other management actions, should be LIQ 12. RLEN Relationship to DFAST transparent in the RLEN projections. LIQ 8. HQLA and Assets Not Eligible as Severely Adverse scenario The peak funding needs should be HQLA in the RLEN Model supported by projections of daily Q. The Final Guidance states the (See ‘‘CAP 3. RCEN Relationship to sources and uses of cash for each U.S. RLEN estimate should be based on the DFAST Severely Adverse Scenario’’ in IHC subsidiary, incorporating inter- minimum amount of HQLA required to the Capital section.) affiliate and third-party exposures. In facilitate the execution of the firm’s U.S. LIQ 13. Liquidity Positioning and mathematical terms, RLEN = MOL + resolution strategy. How should firms Foreign Parent Support peak funding needs during the incorporate any expected liquidity value Q1. May firms consider available stabilization period. RLEN should also of assets that are not eligible as HQLA liquidity at the foreign parent for incorporate liquidity execution needs of (non-HQLA) into the RLEN model? meeting RLEN estimates for U.S. non- the U.S. resolution strategy for A. For a firm’s RLEN model, firms branch material entities? derivatives (see Derivatives and Trading may incorporate conservative estimates A1. To meet the liquidity needs Activities section). of potential liquidity that may be informed by the RLEN methodology, Q2. Should the MOL per entity make generated through the monetization of firms may either fully pre-position explicit the allocation for intraday non-HQLA. The estimated liquidity liquidity in the U.S. non-branch liquidity requirements, inter-affiliate value of non-HQLA should be material entities or develop a and other funding frictions, operating supported by thorough analysis of the mechanism for planned foreign parent expenses, and working capital needs? potential market constraints and asset support of any amount not pre-

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positioned for the successful execution LER 3. Creation of Additional Legal formed for Community Reinvestment of the U.S. strategy. Mechanisms to Entities Act purposes), may a firm apply its legal support readily available liquidity may Q. Is the addition of legal entities entity rationalization criteria to these include a term liquidity facility between acceptable, so long as it is consistent entities as a group, rather than at the the U.S. IHC and the foreign parent that with the LER criteria? individual entity level? can be drawn as needed. If a firm’s plan A. Yes. A2. Yes. relies on foreign parent support, the LER 8. Application of LER Criteria. LER 4. Clean Funding Pathways plan should include analysis of how the Q. Under the Final Guidance, is there Q1. Can you provide additional U.S. IHC/foreign parent facility is an expectation that the LER criteria be context around what is meant by clean funded or buffered for by the foreign applied to the legal structure outside of lines of ownership and clean funding parent. the U.S. operations (e.g., outside of the pathways in the legal entity LIQ 14. Not consolidated U.S. IHC or U.S. branch)? LIQ 15. Not consolidated rationalization criteria? Additionally, A. The LER criteria serve to govern LIQ 16. Not consolidated what types of funding are covered by the the corporate structure and requirements? Operational: Shared Services arrangements between U.S. subsidiaries A1. The funding pathways between and U.S. branches in a manner that OPS SS 1. Not Consolidated the foreign parent, U.S. IHC, and U.S. OPS SS 2. Working Capital facilitates the resolvability of U.S. IHC subsidiaries should minimize operations. The Final Guidance is not Q1. Must working capital be uncertainty in the provision of funds intended to govern the corporate maintained for third party and internal and facilitate recapitalization. Also, the structure in jurisdictions outside the shared service costs? complexity of ownership should not U.S. The application of the LER criteria A1. Where a firm maintains shared impede the flow of funding to a U.S. service companies to provide services to should, among other things, ensure that non-branch material entity under the the allocation of activities across the affiliates, working capital should be firm’s U.S. resolution strategy. Potential maintained in those entities sufficient to firm’s U.S. branches and U.S. non- sources of additional complexity could branch material entities support the permit those entities to continue to include, for example, multiple provide services for six months or firm’s US resolution strategy and intermediate holding companies, tenor minimize risk to US financial stability through the period of stabilization as mismatches, or complicated ownership required in the firm’s U.S. resolution in the event of resolution. structures (including those involving Moreover, LER works with other strategy. multiple jurisdictions or fractional Costs related to third-party vendors components to improve resolvability. ownerships). Ownership should be as For example, with regard to shared and inter-affiliate services should be clean and simple as practicable, captured through the working capital services the firm should identify all supporting the U.S. strategy and shared services that support identified element of the MOL estimate (RLEN). actionable sales, transfers, or wind- Q2. When does the six month working critical operations, maintain a mapping downs under varying market conditions. of how/where these services support capital requirement period begin? The clean funding pathways expectation A2. The measurement of the six core business lines and identified applies to all funding provided to a U.S. critical operations, and include this month working capital expectation non-branch material entity regardless of begins upon the bankruptcy filing of the mapping into the legal rationalization type and should not be viewed solely to criteria and implementation efforts. U.S. IHC. The expectation for apply to internal TLAC. maintaining the working capital is Q2. The Final Guidance regarding Derivatives and Trading Activities effective upon the July 2018 submission. legal entity rationalization criteria To the extent relevant, the derivatives OPS SS 3. Not Consolidated discusses ‘‘clean lines of ownership’’ OPS SS 4. Not Consolidated and trading FAQs have been and ‘‘clean funding pathways.’’ Does consolidated into the updated section of Operations: Payments, Clearing and this statement mean that firms’ legal the Final Guidance. Settlement entity rationalization criteria should Legal To the extent relevant, the PCS FAQs require funding pathways and have been consolidated into the updated recapitalization to always follow lines of LEG 1. Not consolidated. section of the Final Guidance. ownership? LEG 2. Contractually Binding A2. No. However, the firm should Mechanisms Legal Entity Rationalization identify and address or mitigate any The Final Guidance does not legal, regulatory, financial, operational, LER 1. Not consolidated specifically reference consideration of a and other factors that could complicate LER 2. Legal Entity Rationalization contractually binding mechanism. the recapitalization and/or liquidity Criteria However, the following questions and support of U.S. non-branch material Q. Is it acceptable to take into account answers may be useful to a firm that entities. business-related criteria, in addition to chooses to consider a contractually the resolution requirements, so that the LER 5. Not consolidated binding mechanism as a mitigant to the LER Criteria can be used for both LER 6. Not consolidated potential challenges to the planned resolution planning and business LER 7. Application of Legal Entity Support. operations purposes? Rationalization Criteria Q1. Do the Agencies have any A. Yes, LER criteria may incorporate Q1. Which legal entities should be preference as to whether capital is both business and resolution covered under the LER framework? down-streamed to key subsidiaries considerations. In determining the best A1. The scope of a firm’s LER criteria (including an IDI subsidiary) in the form alignment of legal entities and business should apply to the entire U.S. of capital contributions vs. forgiveness lines to improve the firm’s resolvability operations. of debt? under different market conditions, Q2. To the extent a firm has a large A1. No. The Agencies do not have a business considerations should not be number of similar U.S. non-material preference as to the form of capital prioritized over resolution needs. entities (such as single-purpose entities contribution or liquidity support.

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Q2. Should a contractually binding Dated at Washington, DC, on or about GENERAL SERVICES mechanism relate to the provision of December 7, 2020. ADMINISTRATION capital or liquidity? What classes of James P. Sheesley, [Notice-PBS–2020–11; Docket No. 2020– Assistant Executive Secretary. assets would be deemed to provide 0002; Sequence No. 41] capital vs. liquidity? [FR Doc. 2020–28155 Filed 12–21–20; 8:45 am] A2. Contractually binding mechanism BILLING CODE 6210–01– 6714–01–P Notice of Intent To Prepare an is a generic term and includes the Environmental Impact Statement for down-streaming of capital and/or the Proposed Master Plan for the U.S. liquidity as contemplated by the U.S. FEDERAL RESERVE SYSTEM Food and Drug Administration Muirkirk resolution strategy. Furthermore, it is up Road Campus (Prince George’s to the firm, as informed by any relevant Change in Bank Control Notices; County, Laurel, MD) guidance of the Agencies, to identify Acquisitions of Shares of a Bank or what assets would satisfy a U.S. Bank Holding Company AGENCY: National Capital Region, General Services Administration (GSA). affiliate’s need for capital and/or The notificants listed below have ACTION: Notice of Intent to prepare an liquidity. applied under the Change in Bank Environmental Impact Statement (EIS). Q3. Is there a minimum acceptable Control Act (Act) (12 U.S.C. 1817(j)) and duration for a contractually binding § 225.41 of the Board’s Regulation Y (12 SUMMARY: Pursuant to the requirements mechanism? Would an ‘‘evergreen’’ CFR 225.41) to acquire shares of a bank of the National Environmental Policy arrangement, renewable on a periodic or bank holding company. The factors Act of 1969 (NEPA), the Council on basis (and with notice to the Agencies), that are considered in acting on the Environmental Quality Regulations, be acceptable? applications are set forth in paragraph 7 GSA Order, ADM 1095.1F, A3. To the extent a firm utilizes a of the Act (12 U.S.C. 1817(j)(7)). Environmental Considerations in contractually binding mechanism, such The public portions of the Decision Making, dated October 19, mechanism, including its duration, applications listed below, as well as 1999, and the GSA Public Buildings should be appropriate for the firm’s U.S. other related filings required by the Service NEPA Desk Guide, GSA plans to resolution strategy, including Board, if any, are available for prepare an EIS for a proposed Master adequately addressing relevant immediate inspection at the Federal Plan for the U.S. Food and Drug financial, operational, and legal Reserve Bank(s) indicated below and at Administration’s (FDA) Muirkirk Road requirements and challenges. the offices of the Board of Governors. Campus (MRC), in Laurel, Maryland, Q4. Not consolidated. This information may also be obtained located in Prince George’s County. The Q5. Not consolidated. on an expedited basis, upon request, by Master Plan will provide FDA with a Q6. The firm may need to amend its contacting the appropriate Federal structured framework for developing the contractually binding mechanism from Reserve Bank and from the Board’s MRC over the next 20 years. time to time resulting potentially from Freedom of Information Office at DATES: Applicable: December 22, 2020. https://www.federalreserve.gov/foia/ changes in relevant law, new or different FOR FURTHER INFORMATION CONTACT: request.htm. Interested persons may regulatory expectations, etc. Is a firm Marshall Popkin, Office of Planning and express their views in writing on the able to do this as long as there is no Design Quality, Public Buildings standards enumerated in paragraph 7 of undue risk to the enforceability (e.g., no Service, GSA, National Capital Region, the Act. signs of financial stress sufficient to at 202–919–0026. Comments regarding each of these unduly threaten the agreement’s SUPPLEMENTARY INFORMATION: The GSA enforceability as a result of fraudulent applications must be received at the Reserve Bank indicated or the offices of intends to prepare an EIS to analyze the transfer)? potential impacts resulting from the A6. Yes, however the Agencies should the Board of Governors, Ann E. Misback, Secretary of the Board, 20th proposed Master Plan to support the be informed of the proposed duration of FDA MRC, in Laurel, Maryland, located the agreement, as well as any terms and Street and Constitution Avenue NW, Washington, DC 20551–0001, not later in Prince George’s County. GSA will conditions on renewal and/or analyze four alternatives for the amendment. Any amendments should than January 6, 2021. A. Federal Reserve Bank of proposed MRC Master Plan: (1) No be identified and discussed as part of Action Alternative; (2) Development at the firm’s next U.S. resolution plan Minneapolis (Chris P. Wangen, Assistant Vice President) 90 Hennepin the Mod 1/Mod 2 site; (3) Hybrid of submission. Alternatives 2 and 4; and (4) Q7. Not consolidated. Avenue, Minneapolis, Minnesota 55480–0291: Development at the Beltsville Research Q8. Should firms include a formal Facility site. The proposed action is 1. Steven and Laurel Klefstad, regulatory trigger by which the Agencies anticipated to impact soils and Forman, North Dakota; to join the can directly trigger a contractually topography; traffic and transit; water McLaen family shareholder group, a binding mechanism? resources; vegetation; wildlife; air group acting in concert, to retain voting quality; greenhouse gases and climate; A8. No shares of Napoleon Bancorporation, utilities; and waste management. No Inc., Napoleon, North Dakota, and General permits are required to adopt the Master thereby indirectly retain voting shares of Plan. Implementation of the Master Plan None of the general FAQs were Stock Growers Bank, Forman, North in the future could require the following consolidated. Dakota. permits and authorizations: By order of the Board of Governors of the Board of Governors of the Federal Reserve • Dredge or fill permit under Section Federal Reserve System. System, December 17, 2020. 404 of the Clean Water Act Ann Misback, Michele Taylor Fennell, • Secretary of the Board. Coastal Zone Management Deputy Associate Secretary of the Board. Consistency Determination Federal Deposit Insurance Corporation. [FR Doc. 2020–28199 Filed 12–21–20; 8:45 am] • State and local permits, including By order of the Board of Directors. BILLING CODE 6210–01–P water and wastewater permits,

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building permits, sediment and individuals take this opportunity to ACTION: Notice of request for public erosion control permits, grading identify environmental concerns that comments regarding an extension to an permits, and stormwater management should be addressed during the existing OMB information collection. permits. preparation of the EIS. SUMMARY: Under the provisions of the Background Public Scoping Meeting Paperwork Reduction Act, the In 1981, GSA completed an EIS that Due to the ongoing COVID–19 Regulatory Secretariat Division will be analyzed the impacts from the pandemic and state/local requirements submitting to the Office of Management construction of new laboratory space at for social distancing, a pre-recorded and Budget (OMB) a request to review the MRC and the consolidation of four presentation will be available at and approve an extension of a facilities in the Washington, DC, metro www.gsa.gov/ncrnepa in lieu of a previously approved information area and other sites in St. Louis, MO, traditional in-person public scoping collection requirement regarding and Cincinnati, OH. In 1990, Congress meeting. A project phone line [410– information specific to a contract or enacted the Food and Drug 777–9537] has also been set up to listen contracting action that is not required Revitalization Act that gave GSA the to the presentation and to leave by regulation. authority to grant contracts to comments on the proposed Master Plan. DATES: Submit comments on or before: consolidate FDA facilities. To The pre-recorded presentation and January 21, 2021. accommodate future growth and further phone line will be available from ADDRESSES: Written comments and consolidate FDA operations, GSA is January 4, 2021, through February 11, recommendations for this information preparing an EIS to assess the impacts 2021. The GSA is publishing notices in collection should be sent within 30 days of development on the MRC and an the Washington Post and Prince of publication of this notice to increase in the employee population of George’s Post announcing the meeting. www.reginfo.gov/public/do/PRAMain. up to approximately 1,800 employees, Find this particular information Written Comments over a period of 20 years. collection by selecting ‘‘Currently under The purpose of the proposed action is Agencies and the public are Review—Open for Public Comments’’ or to provide a Master Plan for the MRC to encouraged to provide comments on by using the search function. guide future site development. The identification of potential alternatives, proposed action is needed to FOR FURTHER INFORMATION CONTACT: Mr. information, and analyses relevant to accommodate projected growth at the Clarence Harrison, Procurement the proposed action. Comments may be MRC and provide the necessary office Analyst, GSA Acquisition Policy provided in writing via mail or email. and laboratory space for FDA to conduct Division, at telephone 202–227–7051 or Verbal comments may also be provided complex and comprehensive research email [email protected]. via the project phone line. Written and reviews. SUPPLEMENTARY INFORMATION: comments regarding the environmental Schedule for Decision-Making analysis for the proposed MRC Master A. Purpose A Draft EIS is expected to be released Plan must be postmarked by February GSA has various mission for public review in June 2021. The GSA 11, 2021, and sent to the following: Mr. responsibilities related to the will hold a public hearing on the Marshall Popkin, NEPA Compliance acquisition and provision of supplies, impacts of the proposed action in July Specialist, Office of Planning and transportation, information technology, 2021, and will seek preliminary Design Quality, Public Buildings telecommunications, real property approval of the MRC Master Plan from Service, U.S. General Services management, and disposal of real and the National Capital Planning Administration, 1800 F Street NW, personal property. These mission Commission (NCPC) at NCPC’s Room 4400, Washington, DC 20405. responsibilities generate requirements September 2021 hearing. A Final EIS Email: [email protected] that are realized through the solicitation will be prepared that will take into using the subject line: FDA MRC Master and award of public contracts. consideration all comments received on Plan EIS Comment. Most GSA procurement-related information collections are required by the Draft EIS, and a Record of Decision Kristi Tunstall Williams, is anticipated in spring 2022. Pending the Federal Acquisition Regulation Deputy Director, Office of Planning and (FAR) or General Services completion of NEPA compliance and Design Quality, Public Buildings Service, review by NCPC, GSA anticipates National Capital Region, U.S. General Administration Acquisition Regulation adopting the MRC Master Plan in spring Services Administration. (GSAR); each clause requiring such a 2022. [FR Doc. 2020–28212 Filed 12–21–20; 8:45 am] collection must be individually approved by OMB. However, some BILLING CODE 6820–Y1–P Scoping Process solicitations require contractors to In accordance with NEPA, a scoping submit information specific to that process will be conducted to aid in GENERAL SERVICES contracting action, such as information determining the alternatives to be ADMINISTRATION needed to evaluate offers (e.g. specific considered and the scope of issues to be instructions for technical and price addressed, as well as for identifying the proposals, references for past significant issues related to the [OMB Control No. 3090–0163; Docket No. 2020–0001; Sequence No. 11] performance) or data used to administer proposed MRC Master Plan. Scoping resulting contracts (e.g. project will be accomplished through a virtual Submission for OMB Review; General management plans). public scoping meeting; direct mail Services Acquisition Regulation; This information collection is correspondence to potentially interested Information Specific to a Contract or currently associated with GSA’s persons, agencies, and organizations; Contracting Action (Not Required by information collection requirements and meetings with agencies having an Regulation) contained in solicitations issued in interest in the Master Plan. It is accordance with the Uniform Contract important that Federal, regional, State, AGENCY: Office of Acquisition Policy, Format under FAR Part 14, Sealed and local agencies, and interested General Services Administration (GSA). Bidding (see GSAR 514.201–1); FAR

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Part 15, Contracting by Negotiation (see FOR FURTHER INFORMATION CONTACT: 2. Clinical prevention, health GSAR 552.215–73); and solicitations Lydia Hill at [email protected]; promotion and primary health care; and under FAR Part 12, Acquisition of 301–427–1587. 3. Implementation of evidence-based Commercial Items (see GSAR 512.301). SUPPLEMENTARY INFORMATION: recommendations in clinical practice This includes information collection including at the clinician-patient level, requirements found in GSA Federal Arrangement for Public Inspection practice level, and health-system level. Supply Schedule (FSS) solicitations. Nominations and applications are Additionally, the Task Force benefits kept on file at the Center for Evidence B. Annual Reporting Burden from members with expertise in the and Practice Improvement, AHRQ, and following areas: Respondents: 2,597,377. are available for review during business D Public Health. Responses per Respondent: 1. hours. AHRQ does not reply to D Health Equity and The Reduction Total Responses: 2,597,377. individual nominations, but considers Of Health Disparities. Hours Per Response: .40. all nominations in selecting members. D Total Burden Hours: 1,038,950. Application of Science to Health Information regarded as private and Policy. C. Public Comments personal, such as a nominee’s social D Dissemination and Implementation. A notice was published in the Federal security number, home and email D Behavioral Medicine/Clinical Register at 85 FR 62731 on October 5, addresses, home telephone and fax Health Psychology. 2020. Two comments were received. No numbers, or names of family members D Communication of Scientific changes were made to the information will not be disclosed to the public in Findings to Multiple Audiences collection requirements or supporting accord with the Freedom of Information Including Health Care Professionals, statement as a result of the public Act. 5 U.S.C. 552(b)(6); 45 CFR 5.31(f). Policy Makers and the General Public. comments, because they were not Nomination Submissions Candidates with experience and skills in any of these areas should highlight applicable to the policy. Nominations must be submitted Obtaining Copies of Proposals: them in their nomination materials. electronically, and should include: Requesters may obtain a copy of the 1. The applicant’s current curriculum Applicants must have no substantial information collection documents from vitae and contact information, including conflicts of interest, whether financial, the GSA Regulatory Secretariat Division, mailing address, and email address; and professional, or intellectual, that would by calling 202–501–4755 or emailing 2. A letter explaining how this impair the scientific integrity of the [email protected]. Please cite OMB individual meets the qualification work of the USPSTF and must be Control No. 3090–0163, Information requirements and how he or she would willing to complete regular conflict of Specific to a Contract or Contracting contribute to the USPSTF. The letter interest disclosures. Action (Not Required by Regulation), in should also attest to the nominee’s Applicants must have the ability to all correspondence. willingness to serve as a member of the work collaboratively with a team of USPSTF. diverse professionals who support the Jeffrey Koses, mission of the USPSTF. Applicants Senior Procurement Executive, Office of AHRQ will later ask people under serious consideration for USPSTF must have adequate time to contribute Acquisition Policy, Office of Government- substantively to the work products of wide Policy. membership to provide detailed the USPSTF. [FR Doc. 2020–28187 Filed 12–21–20; 8:45 am] information that will permit evaluation BILLING CODE 6820–61–P of possible significant conflicts of Nominee Selection interest. Such information will concern matters such as financial holdings, Nominated individuals will be consultancies, non-financial scientific selected for the USPSTF on the basis of DEPARTMENT OF HEALTH AND how well they meet the required HUMAN SERVICES interests, and research grants or contracts. qualifications and the current expertise To obtain a diversity of perspectives, needs of the USPSTF. It is anticipated Agency for Healthcare Research and that new members will be invited to Quality AHRQ particularly encourages nominations of women, members of serve on the USPSTF beginning in Solicitation for Nominations for underrepresented populations, and January, 2022. All nominated Members of the U.S. Preventive persons with disabilities. Interested individuals will be considered; Services Task Force (USPSTF) individuals can nominate themselves. however, strongest consideration will be Organizations and individuals may given to individuals with demonstrated AGENCY: Agency for Healthcare Research nominate one or more people qualified training and expertise in the areas of and Quality (AHRQ), HHS. for membership on the USPSTF at any Family Medicine, Internal Medicine, ACTION: Solicits nominations for new time. Individuals nominated prior to Pediatrics, Obstetrics and Gynecology, members of the USPSTF. March 15, 2020, who continue to have and Advanced Practice Nursing. AHRQ interest in serving on the USPSTF will retain and may consider for future SUMMARY: The Agency for Healthcare should be re-nominated. vacancies nominations received this Research and Quality (AHRQ) invites year and not selected during this cycle. nominations of individuals qualified to Qualification Requirements Some USPSTF members without serve as members of the U.S. Preventive To qualify for the USPSTF and primary health care clinical experience Services Task Force (USPSTF). support its mission, an applicant or may be selected based on their expertise DATES: Nominations must be received nominee should, at a minimum, in methodological issues such as meta- electronically by March 15th of a given demonstrate knowledge, expertise and analysis, analytic modeling, or clinical year to be considered for appointment to national leadership in the following epidemiology. For individuals with begin in January of the following year. areas: clinical expertise in primary health care, ADDRESSES: Submit your responses 1. The critical evaluation of research additional qualifications in electronically via: https:// published in peer-reviewed literature methodology would enhance their uspstfnominations.ahrq.gov/register. and in the methods of evidence review; candidacy.

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Background making recommendations on preventive There are no changes requested to the Under Title IX of the Public Health services, reviewing stakeholder form. comments, drafting final Service Act, AHRQ is charged with DATES: Comments due within 60 days of enhancing the quality, appropriateness, recommendation documents, and publication. In compliance with the and effectiveness of health care services participating in workgroups on specific requirements of Section 3506(c)(2)(A) of and access to such services. 42 U.S.C. topics and methods. Members can the Paperwork Reduction Act of 1995, 299(b). AHRQ accomplishes these goals expect to receive frequent emails, can the Administration for Children and through scientific research and expect to participate in multiple Families is soliciting public comment promotion of improvements in clinical conference calls each month, and can on the specific aspects of the practice, including clinical prevention expect to have periodic interaction with information collection described above. of diseases and other health conditions. stakeholders. AHRQ estimates that members devote approximately 200 ADDRESSES: Copies of the proposed See 42 U.S.C. 299(b). collection of information can be The USPSTF, an independent body of hours a year outside of in-person obtained and comments may be experts in prevention and evidence- meetings to their USPSTF duties. The forwarded by emailing infocollection@ based medicine, works to improve the members are all volunteers and do not acf.hhs.gov. Alternatively, copies can health of all Americans by making receive any compensation beyond also be obtained by writing to the evidence-based recommendations about support for travel to in person meetings. Administration for Children and the effectiveness of clinical preventive Dated: December 16, 2020. Families, Office of Planning, Research, services and health promotion. The Marquita Cullom, and Evaluation (OPRE), 330 C Street recommendations made by the USPSTF Associate Director. address clinical preventive services for SW, Washington, DC 20201, Attn: ACF adults and children, and include [FR Doc. 2020–28131 Filed 12–21–20; 8:45 am] Reports Clearance Officer. All requests, screening tests, counseling services, and BILLING CODE 4160–90–P emailed or written, should be identified preventive medications. by the title of the information collection. The USPSTF was first established in SUPPLEMENTARY INFORMATION: DEPARTMENT OF HEALTH AND 1984 under the auspices of the U.S. Description: The Elementary and Public Health Service. Currently, the HUMAN SERVICES Secondary Education Act of 1965 USPSTF is convened by the Director of Administration for Children and (ESEA), section 1124 of Title I, as AHRQ, and AHRQ provides ongoing Families amended by Public Law 114–95, scientific, administrative, and requires the Secretary of Health and dissemination support for the USPSTF’s Human Services to determine the operation. USPSTF members serve four [OMB #0970–0004] number of children aged 5 to 17, year terms. New members are selected Proposed Information Collection inclusive, that (1) are being supported in each year to replace those members who Activity; Annual Statistical Report on foster homes with public funds; or (2) are completing their appointments. Children in Foster Homes and Children are from families receiving assistance The USPSTF is charged with in Families Receiving Payment in payments in excess of the current rigorously evaluating the effectiveness, Excess of the Poverty Income Level poverty income level for a family of appropriateness and cost-effectiveness From a State Program Funded Under four. The information gathered is to be of clinical preventive services and Part A of Title IV of the Social Security passed on to the Secretary of Education formulating or updating Act for purposes of allocating grants recommendations regarding the authorized under this law. The statute appropriate provision of preventive AGENCY: Office of Family Assistance, requires that the formula to allocate services. See 42 U.S.C. 299b–4(a)(1). Administration for Children and these grants and distribute funds be Current USPSTF recommendations and Families, HHS. based, in part, on October caseload data associated evidence reviews are ACTION: Request for public comment. on the number of children in foster care available on the internet or in families receiving payments from (www.uspreventiveservicestaskforce. SUMMARY: The Office of Family state programs funded under Title IV–A org). USPSTF members currently meet Assistance (OFA), Administration for of the Social Security Act [Temporary three times a year for two days in the Children and Families, is requesting a 3- Assistance for Needy Families]. The Washington, DC area. A significant year extension of the form ACF–4125: purpose of this annual survey is to portion of the USPSTF’s work occurs Annual Statistical Report on Children in provide annually updated data so that between meetings during conference Foster Homes and Children in Families funds may be allocated in accordance calls and via email discussions. Member Receiving Payment in Excess of the with the ESEA. duties include prioritizing topics, Poverty Income Level from a State Respondents: State agencies designing research plans, reviewing and Program Funded Under Part A of Title (including the District of Columbia and commenting on systematic evidence IV of the Social Security Act (OMB Puerto Rico) administering child welfare reviews of evidence, discussing and #0970–0004, expiration 3/21/2021). and public assistance programs.

ANNUAL BURDEN ESTIMATES

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

Annual Statistical Report on Children in Foster Homes and Children Receiv- ing Payments ...... 52 1 264.35 13,746.20

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Estimated Total Annual Burden ACTION: Request for public comment. and Evaluation, 330 C Street SW, Hours: 13,746.20. Washington, DC 20201, Attn: OPRE Comments: The Department SUMMARY: The Health Profession Reports Clearance Officer. All requests, specifically requests comments on (a) Opportunity Grants (HPOG) Program emailed or written, should be identified whether the proposed collection of provides healthcare occupational by the title of the information collection. training for Temporary Assistance for information is necessary for the proper SUPPLEMENTARY INFORMATION: Needy Families recipients and other performance of the functions of the Description: The COVID–19 pandemic low-income people. The Office of agency, including whether the has had profound effects on the U.S. Management and Budget (OMB) has information shall have practical utility; economy, on the healthcare sector and approved various data collection (b) the accuracy of the agency’s estimate on individuals and families across the activities for the National and Tribal of the burden of the proposed collection country. The pandemic has also had Evaluation of the 2nd Generation of of information; (c) the quality, utility, broad implications for HPOG 2.0 HPOG (HPOG 2.0 National and Tribal and clarity of the information to be programs—on how and how much Evaluation) under OMB #0970–0462. collected; and (d) ways to minimize the healthcare training is delivered, on Due to the profound effects the COVID– burden of the collection of information demand for healthcare workers, on 19 pandemic has had on the U.S. on respondents, including through the interest in working in health care, and economy, on families nationwide and use of automated collection techniques on the labor market more broadly. OPRE on HPOG 2.0 programs, the Office of or other forms of information seeks to understand the particular Planning, Research, and Evaluation technology. Consideration will be given experiences of those who apply for the (OPRE) is considering surveying study to comments and suggestions submitted HPOG Program during this period by participants who applied to the HPOG within 60 days of this publication. surveying study participants enrolled Program after the onset of the pandemic. Authority: Public Law 107–110 Sec: after the onset of the pandemic. The This notice provides a summary for 1124(c)(4) and Pub. L. 104–193 Sec: 110(j). COVID Cohort Survey would collect public review and comment of the use important information on participant Mary B. Jones, and burden associated with a new experiences 15 months after ACF/OPRE Certifying Officer. information collection for this ‘‘COVID randomization and would allow the [FR Doc. 2020–28252 Filed 12–21–20; 8:45 am] Cohort’’ Survey. impact study to compare impacts for BILLING CODE 4184–36–P DATES: Comments due within 60 days of pre-COVID participants with impacts for publication. In compliance with the those enrolled after the onset the requirements of Section 3506(c)(2)(A) of pandemic. DEPARTMENT OF HEALTH AND the Paperwork Reduction Act of 1995, HUMAN SERVICES Respondents: HPOG impact study the Administration for Children and participants from the 27 non-tribal Administration for Children and Families is soliciting public comment HPOG 2.0 grantees (treatment and Families on the specific aspects of the control group members who enroll information collection described above. between May 2020 and September [OMB #0970–0462] ADDRESSES: Copies of the proposed 2021). collection of information can be Proposed Information Collection Annual Burden Estimates Activity; National and Tribal Evaluation obtained and comments may be of the 2nd Generation of the Health forwarded by emailing This request is specific to the COVID Profession Opportunity Grants [email protected]. Cohort Survey. Currently approved Alternatively, copies can also be materials and associated burden can be AGENCY: Office of Planning, Research, obtained by writing to the found at: https://www.reginfo.gov/ and Evaluation, Administration for Administration for Children and public/do/PRAICList?ref_nbr=201904- Children and Families, HHS. Families, Office of Planning, Research, 0970-006.

Number of Number of responses per Average Instrument respondents respondent burden per Total burden Annual burden (total over (total over response (in hours) (in hours) request period) request period) (in hours)

Instrument 21: COVID–19 Cohort Survey ...... 5,120 1 1 5,120 1,707

Estimated Total Annual Burden burden of the collection of information 413 of the Social Security Act, 42 U.S.C. Hours: 1,707. on respondents, including through the 613. use of automated collection techniques Comments: The Department Mary B. Jones, or other forms of information specifically requests comments on (a) ACF/OPRE Certifying Officer. whether the proposed collection of technology. Consideration will be given [FR Doc. 2020–28246 Filed 12–21–20; 8:45 am] information is necessary for the proper to comments and suggestions submitted performance of the functions of the within 60 days of this publication. BILLING CODE 4184–72–P agency, including whether the Authority: Section 2008 of the Social information shall have practical utility; Security Act as enacted by Section 5507 (b) the accuracy of the agency’s estimate of the Affordable Care Act and Section of the burden of the proposed collection of information; (c) the quality, utility, and clarity of the information to be collected; and (d) ways to minimize the

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DEPARTMENT OF HEALTH AND ADDRESSES: Submit written comments regulations and other applicable HUMAN SERVICES on the collection of information by: instructions and guidelines issued by (a) Email to: OIRA_submission@ the ACL. The level of data detail Administration for Community Living omb.eop.gov, Attn: OMB Desk Officer necessary is not available through the for ACL; Agency Information Collection SF–425 form. The Supplemental Form (b) Fax to 202.395.5806, Attn: OMB Activities; Submission for OMB provides necessary details on non- Desk Officer for ACL; or Review; Public Comment Request; federal required match, administration Title III Supplemental Form to Financial (c) By mail to the Office of expenditures, and Long Term Care Status Report (SF–425), OMB #0985– Information and Regulatory Affairs, Ombudsman expenditures. 0004 OMB, New Executive Office Bldg., 725 17th St. NW, Rm. 10235, Washington, Comments in Response to the 60-Day AGENCY: Administration for Community DC 20503, Attn: OMB Desk Officer for Federal Register Notice Living, HHS. ACL. ACL published a 60-day Federal ACTION: Notice. FOR FURTHER INFORMATION CONTACT: Register Notice in the Federal Register Alice Kelsey, Administration for SUMMARY: The Administration for soliciting public comments on this Community Living is announcing that Community Living, Washington, DC request. The 60-day FRN published on the proposed collection of information 20201, (202) 795–7342 Alice.Kelsey@ August 19, 2020 Volume 85, Number listed above has been submitted to the ACL.hhs.gov. 161, pages 51033–51034; ACL did not Office of Management and Budget SUPPLEMENTARY INFORMATION: In receive any public comments during the (OMB) for review and clearance as compliance with 44 U.S.C. 3507, ACL 60-day FRN period. The proposed data required under section 506(c)(2)(A) of has submitted the following proposed collection tools are on the ACL website the Paperwork Reduction Act of 1995. collection of information to OMB for for review and public comment, please This 30-day notice collects comments review and clearance. The Title III visit https://www.acl.gov/about-acl/ on the information collection Supplemental Form to the Financial public-input. requirements related to the proposed Status Report (SF–425) is used by ACL/ information collection, Title III AoA for all grantees to obtain a more Estimated Program Burden: ACL Supplemental Form to Financial Status detailed understanding of how projects estimates the burden associated with Report (SF–425) OMB 0985–0004. funded under Title III of the Older this collection of information as follows: DATES: Submit written comments on the Americans Act (OAA) of 1965, as 56 State Units on Aging (SUA) respond collection of information by 11:59 p.m. amended, are being administered, and semi-annually which have an average (EST) or postmarked by January 21, to ensure compliance with legislative estimated burden of 2 hours per grantee 2021. requirements, pertinent Federal for a total of 224 hours annually.

Number of Responses per Hours per Annual Respondent/data collection activity respondents respondent response burden hours

Title III Supplemental Form to the Financial Status Report ...... 56 2 2 224

Total ...... 56 2 2 224

Dated: November 27, 2020. ACIM website at https://www.hrsa.gov/ formation and use of Advisory Mary Lazare, advisory-committees/infant-mortality/ Committees. Principal Deputy Administrator. index.html. The ACIM advises the Secretary of HHS on department activities and [FR Doc. 2020–28157 Filed 12–21–20; 8:45 am] DATES: January 25, 2021, 11:00 a.m.– programs directed at reducing infant BILLING CODE 4154–01–P 6:00 p.m. Eastern Time (ET) and January mortality and improving the health 26, 2021, 11:00 a.m.–3:30 p.m. ET. status of pregnant women and infants. ADDRESSES: This meeting will be held DEPARTMENT OF HEALTH AND The ACIM represents a public-private via webinar. The webinar link and log- HUMAN SERVICES partnership at the highest level to in information will be available at provide guidance and focus attention on Health Resources and Services ACIM’s website before the meeting: the policies and resources required to Administration https://www.hrsa.gov/advisory- address the reduction of infant mortality committees/infant-mortality/index.html. and the improvement of the health Meeting of the Advisory Committee on FOR FURTHER INFORMATION CONTACT: status of pregnant women and infants. Infant Mortality David S. de la Cruz, Ph.D., MPH, With a focus on life course, the ACIM Designated Federal Official, Maternal AGENCY: Health Resources and Services addresses disparities in maternal health Administration (HRSA), Department of and Child Health Bureau (MCHB), to improve maternal health outcomes, Health and Human Services (HHS). HRSA, 5600 Fishers Lane, Room 18N25, including preventing and reducing Rockville, Maryland 20857; 301–443– ACTION: Notice. maternal mortality and severe maternal 0543; or [email protected]. morbidity. The ACIM provides advice SUMMARY: In accordance with the SUPPLEMENTARY INFORMATION: The ACIM on how best to coordinate myriad Federal Advisory Committee Act, this is authorized by section 222 of the federal, state, local, and private notice announces that the Advisory Public Health Service Act (42 U.S.C. programs and efforts that are designed Committee on Infant Mortality (ACIM) 217a), as amended. The Committee is to deal with the health and social has scheduled a public meeting. governed by provisions of Public Law problems impacting infant mortality and Information about ACIM and the agenda 92–463, as amended, (5 U.S.C. App. 2), maternal health, including for this meeting can be found on the which sets forth standards for the implementation of the Healthy Start

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program and maternal and infant health 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., DEPARTMENT OF HOMELAND objectives from the National Health as amended. The grant applications and SECURITY Promotion and Disease Prevention the discussions could disclose Objectives (i.e., Healthy People 2030). confidential trade secrets or commercial Coast Guard The agenda for the January 25 and 26, property such as patentable material, [Docket No. USCG–2020–0485] 2021, meeting is being finalized and and personal information concerning may include the following: Updates individuals associated with the grant Notification of the Removal of from HRSA, MCHB, and other federal applications, the disclosure of which Conditions of Entry on Vessels agencies; continued discussion of the would constitute a clearly unwarranted Arriving From the Republic of Liberia impact of COVID–19 on infant and invasion of personal privacy. maternal health; immigrant maternal AGENCY: Coast Guard, DHS. and child health issues; environmental Name of Committee: Fogarty International ACTION: Notice. contributions to infant mortality and Center Advisory Board. maternal mortality; and updates on Date: February 8–9, 2021. SUMMARY: The Coast Guard announces priority topic areas for ACIM to address Closed: February 08, 2021, 1:00 p.m. to that it is removing the conditions of (equity, data, access, and quality of 3:00 p.m. entry on vessels arriving from the care). Agenda items are subject to Agenda: To review and evaluate the country of the Republic of Liberia. change as priorities dictate. Refer to the second level of grant applications. DATES: The policy announced in this ACIM website for any updated Place: Fogarty International Center, notice is effective on December 22, information concerning the meeting. National Institutes of Health, 31 Center Drive, 2020. Bethesda, MD 20892 (Virtual Meeting). Members of the public will have the FOR FURTHER INFORMATION CONTACT: For Open: February 9, 2021, 12:00 p.m. to 2:30 opportunity to provide written or oral information about this document call or comments. Requests to submit a written p.m. Agenda: Update and discussion of current email D.R. McBryde, International Port statement or make oral comments to the Security Evaluation Division, United ACIM should be sent to David S. de la and planned Fogarty International Center activities. States Coast Guard, telephone 202–372– Cruz, using the email address above at 1213, [email protected]. least 3 business days prior to the Place: Fogarty International Center, SUPPLEMENTARY INFORMATION: meeting. Public participants may submit National Institutes of Health, 31 Center Drive, Bethesda, MD 20892 (Virtual Meeting). Discussion: The authority for this written statements in advance of the notice is 5 U.S.C. 552(a) scheduled meeting by emailing SACIM@ Meeting Access: https://www.fic.nih.gov/ About/Advisory/Pages/default.aspx. (‘‘Administrative Procedure Act’’), 46 hrsa.gov. Oral comments will be U.S.C. 70110 (‘‘Maritime Transportation honored in the order they are requested Contact Person: Kristen Weymouth, Executive Secretary, Fogarty International Security Act’’), and Department of and may be limited as time allows. Homeland Security Delegation No. Individuals who plan to attend and Center, National Institutes of Health, 31 0170.1(II)(97.f). As delegated, section need special assistance or another Center Drive, Room B2C02, Bethesda, MD 70110(a) authorizes the Coast Guard to reasonable accommodation should 20892–7952, 301–496–1415, [email protected]. impose conditions of entry on vessels notify David S. de la Cruz at the contact arriving in U.S. waters from ports that information listed above at least 10 Any interested person may file written the Coast Guard has not found to business days prior to the meeting. comments with the committee by forwarding the statement to the Contact Person listed on maintain effective anti-terrorism Maria G. Button, this notice. The statement should include the measures. It also requires public notice Director, Executive Secretariat. name, address, telephone number and when of the ineffective anti-terrorism [FR Doc. 2020–28163 Filed 12–21–20; 8:45 am] applicable, the business or professional measures. The Secretary has delegated BILLING CODE 4165–15–P affiliation of the interested person. to the Coast Guard authority to carry out Information is also available on the the provisions of this section. Institute’s/Center’s home page: http:// On May 2, 2005 the the Coast Guard DEPARTMENT OF HEALTH AND www.fic.nih.gov/About/Advisory/Pages/ published a Notice in the Federal HUMAN SERVICES default.aspx, where an agenda and any Register, (70 FR 22668), announcing additional information for the meeting will that it had determined that effective National Institutes of Health be posted when available. anti-terrorism measures were not in (Catalogue of Federal Domestic Assistance place in the ports of the Republic of Fogarty International Center; Notice of Liberia. Accordingly, conditions of Meeting Program Nos. 93.106, Minority International Research Training Grant in the Biomedical entry were imposed on vessels that Pursuant to section 10(d) of the and Behavioral Sciences; 93.154, Special visited the Republic of Liberia in their Federal Advisory Committee Act, as International Postdoctoral Research Program last five port calls. Based on recent amended, notice is hereby given of a in Acquired Immunodeficiency Syndrome; assessments conducted in 2018, the meeting of the Fogarty International 93.168, International Cooperative Coast Guard has determined that the Center Advisory Board. Biodiversity Groups Program; 93.934, Fogarty Republic of Liberia is maintaining The meeting will be open to the International Research Collaboration Award; effective anti-terrorism measures, and is public via online meeting. Individuals 93.989, Senior International Fellowship accordingly removing the conditions of who plan to attend and need special Awards Program, National Institutes of entry announced in the previously assistance, such as sign language Health, HHS) published Notice. With this notice, the interpretation or other reasonable Dated: December 16, 2020. current list of countries assessed and not maintaining effective anti-terrorism accommodations should notify the Tyeshia M. Roberson, Contact Person listed below in advance measures is as follows: Cambodia, of the virtual meeting. Program Analyst, Office of Federal Advisory Cameroon, Comoros, Cote d’Ivoire, The meeting will be closed to the Committee Policy. Djibouti, Equatorial Guinea, The public in accordance with the [FR Doc. 2020–28169 Filed 12–21–20; 8:45 am] Gambia, Guinea-Bissau, Iran, Iraq, provisions set forth in sections BILLING CODE 4140–01–P Libya, Madagascar, Micronesia, Nauru,

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Nigeria, Republic of Seychelles, Sao will be used to calculate flood insurance The new or modified flood hazard Tome and Principe, Syria, Timor-Leste, premium rates for new buildings and information is the basis for the Venezuela, Yemen. The current Port their contents. floodplain management measures that Security Advisory is available at: http:// DATES: Each LOMR was finalized as in the community is required either to www.dco.uscg.mil/Our-Organization/ the table below. adopt or to show evidence of being Assistant-Commandant-for-Prevention- ADDRESSES: Each LOMR is available for already in effect in order to remain Policy-CG-5P/International-Domestic- inspection at both the respective qualified for participation in the Port-Assessment/. Community Map Repository address National Flood Insurance Program Dated: December 16, 2020. listed in the table below and online (NFIP). Scott A. Buschman, through the FEMA Map Service Center This new or modified flood hazard Vice Admiral, Deputy Commandant for at https://msc.fema.gov. information, together with the Operations, U.S. Coast Guard. FOR FURTHER INFORMATION CONTACT: Rick floodplain management criteria required [FR Doc. 2020–28162 Filed 12–21–20; 8:45 am] Sacbibit, Chief, Engineering Services by 44 CFR 60.3, are the minimum that BILLING CODE 9110–04–P Branch, Federal Insurance and are required. They should not be Mitigation Administration, FEMA, 400 construed to mean that the community C Street SW, Washington, DC 20472, must change any existing ordinances DEPARTMENT OF HOMELAND (202) 646–7659, or (email) that are more stringent in their SECURITY [email protected]; or visit floodplain management requirements. the FEMA Mapping and Insurance The community may at any time enact Federal Emergency Management eXchange (FMIX) online at https:// stricter requirements of its own or Agency www.floodmaps.fema.gov/fhm/fmx_ pursuant to policies established by other [Docket ID FEMA–2020–0002] main.html. Federal, State, or regional entities. SUPPLEMENTARY INFORMATION: The This new or modified flood hazard Changes in Flood Hazard Federal Emergency Management Agency determinations are used to meet the Determinations (FEMA) makes the final flood hazard floodplain management requirements of AGENCY: Federal Emergency determinations as shown in the LOMRs the NFIP and are used to calculate the Management Agency, DHS. for each community listed in the table appropriate flood insurance premium ACTION: Notice. below. Notice of these modified flood rates for new buildings, and for the hazard determinations has been contents in those buildings. The SUMMARY: New or modified Base (1- published in newspapers of local changes in flood hazard determinations percent annual chance) Flood circulation and 90 days have elapsed are in accordance with 44 CFR 65.4. Elevations (BFEs), base flood depths, since that publication. The Deputy Interested lessees and owners of real Special Flood Hazard Area (SFHA) Associate Administrator for Insurance property are encouraged to review the boundaries or zone designations, and/or and Mitigation has resolved any appeals final flood hazard information available regulatory floodways (hereinafter resulting from this notification. at the address cited below for each referred to as flood hazard The modified flood hazard community or online through the FEMA determinations) as shown on the determinations are made pursuant to Map Service Center at https:// indicated Letter of Map Revision section 206 of the Flood Disaster msc.fema.gov. (LOMR) for each of the communities Protection Act of 1973, 42 U.S.C. 4105, listed in the table below are finalized. and are in accordance with the National (Catalog of Federal Domestic Assistance No. Each LOMR revises the Flood Insurance Flood Insurance Act of 1968, 42 U.S.C. 97.022, ‘‘Flood Insurance.’’) Rate Maps (FIRMs), and in some cases 4001 et seq., and with 44 CFR part 65. Michael M. Grimm, the Flood Insurance Study (FIS) reports, For rating purposes, the currently Assistant Administrator for Risk currently in effect for the listed effective community number is shown Management, Department of Homeland communities. The flood hazard and must be used for all new policies Security, Federal Emergency Management determinations modified by each LOMR and renewals. Agency.

Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Arizona: Maricopa Town of Gilbert (20– The Honorable Jenn Daniels, Mayor, Development Services Depart- Nov. 13, 2020 ...... 040044 (FEMA Docket 09–0521P). Town of Gilbert, 50 East Civic Center ment, 90 East Civic Center No.: B–2054). Drive, Gilbert, AZ 85296. Drive, Gilbert, AZ 85296. Colorado: Denver (FEMA City and County of The Honorable Michael B. Hancock, Department of Public Works, Nov. 23, 2020 ...... 080046 Docket No.: Denver (20–08– Mayor, City and County of Denver, 201 West Colfax Avenue, B–2049). 0456P). 1437 North Bannock Street, Room 350, Denver, CO 80202. Denver, CO 80202. Jefferson City of Lakewood The Honorable Adam Paul, Mayor, City of City Hall, 480 South Allison Nov. 20, 2020 ...... 085075 (FEMA Dock- (20–08–0105P). Lakewood, 480 South Allison Parkway, Parkway, Lakewood, CO et No.: B– Lakewood, CO 80226. 80226. 2054). Florida: Collier (FEMA City of Marco Island Mr. Michael T. McNees, Manager, City of Building Services Department, Nov. 9, 2020 ...... 120426 Docket No.: (20–04–2874P). Marco Island, 50 Bald Eagle Drive, 50 Bald Eagle Drive, Marco B–2049). Marco Island, FL 34145. Island, FL 34145. Duvall (FEMA City of Jacksonville The Honorable Lenny Curry, Mayor, City Development Services Division, Nov. 10, 2020 ...... 120077 Docket No.: (20–04–0754P). of Jacksonville, 117 West Duval Street, 214 North Hogan Street, B–2049). Suite 400, Jacksonville, FL 32202. Jacksonville, FL 32202. Miami-Dade City of Florida City The Honorable Otis T. Wallace, Mayor, Building and Zoning Depart- Nov. 18, 2020 ...... 120641 (FEMA Dock- (19–04–6515P). City of Florida City, 404 West Palm ment, 404 West Palm Drive, et No.: B– Drive, Florida City, FL 33034. Florida City, FL 33034. 2054).

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Miami-Dade City of Homestead The Honorable Steven D. Losner, Mayor, Development Services Depart- Nov. 18, 2020 ...... 120645 (FEMA Dock- (19–04–6515P). City of Homestead, 100 Civic Court, ment, 100 Civic Court, et No.: B– Homestead, FL 33030. Homestead, FL 33030. 2054). Miami-Dade City of Sunny Isles The Honorable George ‘‘Bud’’ Scholl, Building Department, 18070 Nov. 19, 2020 ...... 120688 (FEMA Dock- Beach (20–04– Mayor, City of Sunny Isles Beach, Collins Avenue, Sunny Isles et No.: B– 4036P). 18070 Collins Avenue, Sunny Isles Beach, FL 33160. 2054). Beach, FL 33160. Miami-Dade Unincorporated The Honorable Carlos A. Gimenez, Miami-Dade County Environ- Nov. 18, 2020 ...... 120635 (FEMA Dock- areas of Miami- Mayor, Miami-Dade County, 111 North- mental Resources Manage- et No.: B– Dade County (19– west 1st Street, 29th Floor, Miami, FL ment Department, 701 North- 2054). 04–6515P). 33128. west 1st Court, Suite 500, Miami, FL 33136. Sarasota (FEMA City of Sarasota The Honorable Jennifer Ahearn-Koch, Development Services Depart- Nov. 23, 2020 ...... 125150 Docket No.: (20–04–2373P). Mayor, City of Sarasota, 1565 1st ment, 1565 1st Street, Sara- B–2052). Street, Room 101, Sarasota, FL 34236. sota, FL 34236. Georgia: Gwinnett City of Duluth (20– Mr. James Riker, Manager, City of Duluth, Department of Planning and Nov. 19, 2020 ...... 130098 (FEMA Docket 04–1631P). 3167 Main Street, Duluth, GA 30096. Development, 3167 Main No.: B–2054). Street, Duluth, GA 30096. Maine: Washington Town of Addison The Honorable Verlan R. Lenfestey Jr., Town Hall, 334 Water Street, Nov. 12, 2020 ...... 230132 (FEMA Dock- (20–01–0671P). Chairman, Town of Addison Board of Addison, ME 04606. et No.: B– Selectmen, P.O. Box 142, Addison, ME 2049). 04606. Washington Town of Cherryfield The Honorable Arthur Tatangelo, Chair- Town Hall, 12 Municipal Way, Nov. 12, 2020 ...... 230135 (FEMA Dock- (20–01–0670P). man, Town of Cherryfield Board of Se- Cherryfield, ME 04622. et No.: B– lectmen, P.O. Box 58, Cherryfield, ME 2049). 04622. Washington Town of Columbia The Honorable Harry Beal, Jr., Chairman, Town Hall, 106 Epping Road, Nov. 12, 2020 ...... 230307 (FEMA Dock- (20–01–0671P). Town of Columbia Board of Selectmen, Columbia, ME 04623. et No.: B– 106 Epping Road, Columbia, ME 2049). 04623. Washington Town of Columbia The Honorable Nancy Bagley, Chair, Town Hall, 8 Point Street, Co- Nov. 12, 2020 ...... 230308 (FEMA Dock- Falls (20–01– Town of Columbia Falls Board of Se- lumbia Falls, ME 04623. et No.: B– 0671P). lectmen, P.O. Box 100, Columbia Falls, 2049). ME 04623. Washington Town of East The Honorable Kenneth Davis, Jr., Chair- Town Hall, 32 Cutler Road, Nov. 12, 2020 ...... 230313 (FEMA Dock- Machias (20–01– man, Town of East Machias Board of East Machias, ME 04630. et No.: B– 0668P). Selectmen, P.O. Box 117, East 2049). Machias, ME 04630. Washington Town of Harrington The Honorable Joel Strout, Chairman, Town Hall, 114 East Main Nov. 12, 2020 ...... 230314 (FEMA Dock- (20–01–0671P). Town of Harrington Board of Select- Street, Harrington, ME et No.: B– men, P.O. Box 142, Harrington, ME 04643. 2049). 04643. Washington Town of Jonesboro The Honorable Michael Schoppee, Chair- Town Hall, 23 Station Road, Nov. 12, 2020 ...... 230315 (FEMA Dock- (20–01–0668P). man, Town of Jonesboro Board of Se- Jonesboro, ME 04684. et No.: B– lectmen, P.O. Box 86, Jonesboro, ME 2049). 04684. Washington Town of Jonesboro The Honorable Michael Schoppee, Chair- Town Hall, 23 Station Road, Nov. 12, 2020 ...... 230315 (FEMA Dock- (20–01–0671P). man, Town of Jonesboro Board of Se- Jonesboro, ME 04684. et No.: B– lectmen, P.O. Box 86, Jonesboro, ME 2049). 04684. Washington Town of Marshfield The Honorable Robert Carter, Chairman, Town Hall, 187 Northfield Nov. 12, 2020 ...... 230316 (FEMA Dock- (20–01–0668P). Town of Marshfield Board of Select- Road, Marshfield, ME 04654. et No.: B– men, 187 Northfield Road, Marshfield, 2049). ME 04654. Washington Town of Steuben The Honorable Larry Pinkham, Chairman, Town Hall, 294 U.S. Route 1, Nov. 12, 2020 ...... 230323 (FEMA Dock- (20–01–0670P). Town of Steuben Board of Selectmen, Steuben, ME 04680. et No.: B– 294 U.S. Route 1, Steuben, ME 04680. 2049). Washington Town of Whitneyville The Honorable Nate Perry, Chairman, Town Hall, 42 South Main Nov. 12, 2020 ...... 230329 (FEMA Dock- (20–01–0668P). Town of Whitneyville Board of Select- Street, Whitneyville, ME et No.: B– men, 42 South Main Street, 04654. 2049). Whitneyville, ME 04654. New Hampshire: City of Manchester The Honorable Joyce Craig, Mayor, City City Hall, One City Hall Plaza, Nov. 9, 2020 ...... 330169 Hillsborough (20–01–0142P). of Manchester, One City Hall Plaza, Manchester, NH 03101. (FEMA Docket Manchester, NH 03101. No.: B–2049). North Carolina: Hen- Unincorporated The Honorable Grady Hawkins, Chair- Henderson County Administra- Nov. 17, 2020 ...... 370125 derson (FEMA areas of Hender- man, Henderson County Board of Com- tion Building, 100 North King Docket No.: B– son County (20– missioners, 1 Historic Courthouse Street, Hendersonville, NC 2067). 04–2036P). Square, Suite 1, Hendersonville, NC 28792. 27102. Texas: Collin (FEMA City of Celina (20– The Honorable Sean Terry, Mayor, City of City Hall, 142 North Ohio Nov. 16, 2020 ...... 480133 Docket No.: 06–0459P). Celina, 142 North Ohio Street, Celina, Street, Celina, TX 75009. B–2052). TX 75009. Collin (FEMA City of Lucas (20– Ms. Joni Clarke, Manager, City of Lucas, Public Works and Engineering Nov. 23, 2020 ...... 481545 Docket No.: 06–0100P). 665 Country Club Road, Lucas, TX Department, 665 Country B–2052). 75002. Club Road, Lucas, TX 75002.

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Denton (FEMA City of Aubrey (20– The Honorable Janet Meyers, Mayor, City Denton County GIS Depart- Nov. 18, 2020 ...... 480776 Docket No.: 06–0957P). of Aubrey, 107 South Main Street, Au- ment, 701 Kimberly Drive, B–2052). brey, TX 76227. Suite A285, Denton, TX 76208. Gillespie (FEMA City of Fredericks- The Honorable Gary Neffendorf, Mayor, City Hall, 126 West Main Nov. 19, 2020 ...... 480252 Docket No.: burg (19–06– City of Fredericksburg, 126 West Main Street, Fredericksburg, TX B–2054). 2756P). Street, Fredericksburg, TX 78624. 78624. Johnson (FEMA City of Burleson (19– The Honorable Ken Shetter, Mayor, City City Hall, 141 West Renfro Nov. 23, 2020 ...... 485459 Docket No.: 06–3252P). of Burleson, 141 West Renfro Street, Street, Burleson, TX 76028. B–2052). Burleson, TX 76028. Montgomery City of Conroe (19– The Honorable Toby Powell, Mayor, City City Hall, 300 West Davis Nov. 12, 2020 ...... 480484 (FEMA Dock- 06–2853P). of Conroe, P.O. Box 3066, Conroe, TX Street, Conroe, TX 77301. et No.: B– 77305. 2052). Tarrant (FEMA City of Colleyville The Honorable Richard Newton, Mayor, City Hall, 100 Main Street, Nov. 12, 2020 ...... 480590 Docket No.: (20–06–1166P). City of Colleyville, 100 Main Street, Colleyville, TX 76034. B–2049). Colleyville, TX 76034. Tarrant (FEMA City of Mansfield Mr. Clayton Chandler, Manager, City of Geographic Information Sys- Nov. 9, 2020 ...... 480606 Docket No.: (20–06–0705P). Mansfield, 1200 East Broad Street, tems (GIS) Department, B–2052). Mansfield, TX 76063. 1200 East Broad Street, Mansfield, TX 76063. Utah: Grand (FEMA Unincorporated The Honorable Mary McGann, Chair, Grand County Courthouse, 125 Nov. 13, 2020 ...... 490232 Docket No.: B– areas of Grand Grand County Council, 125 East Center East Center Street, Moab, 2052). County (20–08– Street, Moab, UT 84532. UT 84532. 0298P). Virginia: Independent City of Fairfax (20– Mr. Robert A. Stalzer, Manager, City of Public Works Department, Nov. 16, 2020 ...... 515524 City (FEMA Dock- 03–0228P). Fairfax, 10455 Armstrong Street, Room 10455 Armstrong Street, et No.: B–2052). 316, Fairfax, VA 22030. Fairfax, VA 22030.

[FR Doc. 2020–28221 Filed 12–21–20; 8:45 am] in order to qualify or remain qualified eXchange (FMIX) online at https:// BILLING CODE 9110–12–P for participation in the National Flood www.floodmaps.fema.gov/fhm/fmx_ Insurance Program (NFIP). In addition, main.html. the FIRM and FIS report, once effective, DEPARTMENT OF HOMELAND will be used by insurance agents and SUPPLEMENTARY INFORMATION: FEMA SECURITY others to calculate appropriate flood proposes to make flood hazard insurance premium rates for new determinations for each community Federal Emergency Management buildings and the contents of those listed below, in accordance with section Agency buildings. 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR [Docket ID FEMA–2020–0002; Internal DATES: Comments are to be submitted Agency Docket No. FEMA–B–2077] 67.4(a). on or before March 22, 2021. These proposed flood hazard Proposed Flood Hazard ADDRESSES: The Preliminary FIRM, and determinations, together with the Determinations where applicable, the FIS report for floodplain management criteria required each community are available for by 44 CFR 60.3, are the minimum that AGENCY: Federal Emergency inspection at both the online location are required. They should not be Management Agency, DHS. https://www.fema.gov/ construed to mean that the community ACTION: Notice. preliminaryfloodhazarddata and the must change any existing ordinances SUMMARY: Comments are requested on respective Community Map Repository that are more stringent in their proposed flood hazard determinations, address listed in the tables below. floodplain management requirements. which may include additions or Additionally, the current effective FIRM The community may at any time enact modifications of any Base Flood and FIS report for each community are stricter requirements of its own or Elevation (BFE), base flood depth, accessible online through the FEMA pursuant to policies established by other Special Flood Hazard Area (SFHA) Map Service Center at https:// Federal, State, or regional entities. boundary or zone designation, or msc.fema.gov for comparison. These flood hazard determinations are regulatory floodway on the Flood You may submit comments, identified used to meet the floodplain Insurance Rate Maps (FIRMs), and by Docket No. FEMA–B–2077, to Rick management requirements of the NFIP where applicable, in the supporting Sacbibit, Chief, Engineering Services and are used to calculate the Flood Insurance Study (FIS) reports for Branch, Federal Insurance and appropriate flood insurance premium the communities listed in the table Mitigation Administration, FEMA, 400 rates for new buildings built after the below. The purpose of this notice is to C Street SW, Washington, DC 20472, FIRM and FIS report become effective. seek general information and comment (202) 646–7659, or (email) The communities affected by the regarding the preliminary FIRM, and [email protected]. flood hazard determinations are where applicable, the FIS report that the FOR FURTHER INFORMATION CONTACT: Rick provided in the tables below. Any Federal Emergency Management Agency Sacbibit, Chief, Engineering Services request for reconsideration of the (FEMA) has provided to the affected Branch, Federal Insurance and revised flood hazard information shown communities. The FIRM and FIS report Mitigation Administration, FEMA, 400 on the Preliminary FIRM and FIS report are the basis of the floodplain C Street SW, Washington, DC 20472, that satisfies the data requirements management measures that the (202) 646–7659, or (email) outlined in 44 CFR 67.6(b) is considered community is required either to adopt [email protected]; or visit an appeal. Comments unrelated to the or to show evidence of having in effect the FEMA Mapping and Insurance flood hazard determinations also will be

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considered before the FIRM and FIS appeal. Additional information identified by the unique project number report become effective. regarding the SRP process can be found and Preliminary FIRM date listed in the Use of a Scientific Resolution Panel online at https://www.floodsrp.org/pdfs/ tables. Additionally, the current (SRP) is available to communities in srp_overview.pdf. effective FIRM and FIS report for each support of the appeal resolution The watersheds and/or communities community are accessible online process. SRPs are independent panels of affected are listed in the tables below. through the FEMA Map Service Center experts in hydrology, hydraulics, and The Preliminary FIRM, and where at https://msc.fema.gov for comparison. other pertinent sciences established to applicable, FIS report for each review conflicting scientific and community are available for inspection (Catalog of Federal Domestic Assistance No. technical data and provide at both the online location https:// 97.022, ‘‘Flood Insurance.’’) recommendations for resolution. Use of www.fema.gov/ Michael M. Grimm, the SRP only may be exercised after preliminaryfloodhazarddata and the Assistant Administrator for Risk FEMA and local communities have been respective Community Map Repository Management, Department of Homeland engaged in a collaborative consultation address listed in the tables. For Security, Federal Emergency Management process for at least 60 days without a communities with multiple ongoing Agency. mutually acceptable resolution of an Preliminary studies, the studies can be

Community Community map repository address

Monroe County, Florida and Incorporated Areas Project: 15–04–4157S Preliminary Date: December 27, 2019

City of Key Colony Beach ...... Building and Planning Department, 600 West Ocean Drive, Key Colony Beach, FL 33051. City of Key West ...... Building Department, 1300 White Street, Key West, FL 33040. City of Layton ...... Layton Building Department, 68260 Overseas Highway, Long Key, FL 33001. City of Marathon ...... Planning Department, 9805 Overseas Highway, Marathon, FL 33050. Unincorporated Areas of Monroe County ...... Monroe County Building and Permitting Department, 2798 Overseas Highway, Suite 300, Marathon, FL 33050. Village of Islamorada...... Building and Planning Department, 86800 Overseas Highway, Islamorada, FL 33036.

Jones County, North Carolina and Incorporated Areas Project: 11–04–7660S Preliminary Date: November 30, 2018

Unincorporated Areas of Jones County ...... Jones County Government Office, 418 Highway 58 North, Trenton, NC 28585.

Tyrrell County, North Carolina and Incorporated Areas Project: 11–04–8218S Preliminary Date: November 30, 2018

Unincorporated Areas of Tyrrell County ...... Tyrrell County Planning Department, 108 South Water Street, Colum- bia, NC 27925.

[FR Doc. 2020–28223 Filed 12–21–20; 8:45 am] indicated Letter of Map Revision C Street SW, Washington, DC 20472, BILLING CODE 9110–12–P (LOMR) for each of the communities (202) 646–7659, or (email) listed in the table below are finalized. [email protected]; or visit Each LOMR revises the Flood Insurance the FEMA Mapping and Insurance DEPARTMENT OF HOMELAND Rate Maps (FIRMs), and in some cases eXchange (FMIX) online at https:// SECURITY the Flood Insurance Study (FIS) reports, www.floodmaps.fema.gov/fhm/fmx_ currently in effect for the listed main.html. Federal Emergency Management communities. The flood hazard Agency SUPPLEMENTARY INFORMATION: The determinations modified by each LOMR Federal Emergency Management Agency [Docket ID FEMA–2020–0002] will be used to calculate flood insurance (FEMA) makes the final flood hazard premium rates for new buildings and determinations as shown in the LOMRs Changes in Flood Hazard their contents. for each community listed in the table Determinations DATES: Each LOMR was finalized as in below. Notice of these modified flood AGENCY: Federal Emergency the table below. hazard determinations has been published in newspapers of local Management Agency, DHS. ADDRESSES: Each LOMR is available for ACTION: Notice. circulation and 90 days have elapsed inspection at both the respective since that publication. The Deputy Community Map Repository address SUMMARY: New or modified Base (1- Associate Administrator for Insurance percent annual chance) Flood listed in the table below and online and Mitigation has resolved any appeals Elevations (BFEs), base flood depths, through the FEMA Map Service Center resulting from this notification. Special Flood Hazard Area (SFHA) at https://msc.fema.gov. The modified flood hazard boundaries or zone designations, and/or FOR FURTHER INFORMATION CONTACT: Rick determinations are made pursuant to regulatory floodways (hereinafter Sacbibit, Chief, Engineering Services section 206 of the Flood Disaster referred to as flood hazard Branch, Federal Insurance and Protection Act of 1973, 42 U.S.C. 4105, determinations) as shown on the Mitigation Administration, FEMA, 400 and are in accordance with the National

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Flood Insurance Act of 1968, 42 U.S.C. floodplain management criteria required contents in those buildings. The 4001 et seq., and with 44 CFR part 65. by 44 CFR 60.3, are the minimum that changes in flood hazard determinations For rating purposes, the currently are required. They should not be are in accordance with 44 CFR 65.4. effective community number is shown construed to mean that the community Interested lessees and owners of real and must be used for all new policies must change any existing ordinances property are encouraged to review the and renewals. that are more stringent in their final flood hazard information available The new or modified flood hazard floodplain management requirements. at the address cited below for each information is the basis for the The community may at any time enact community or online through the FEMA floodplain management measures that stricter requirements of its own or Map Service Center at https:// the community is required either to pursuant to policies established by other msc.fema.gov. adopt or to show evidence of being Federal, State, or regional entities. (Catalog of Federal Domestic Assistance No. already in effect in order to remain This new or modified flood hazard 97.022, ‘‘Flood Insurance.’’) qualified for participation in the determinations are used to meet the Michael M. Grimm, National Flood Insurance Program floodplain management requirements of Assistant Administrator for Risk (NFIP). the NFIP and are used to calculate the Management, Department of Homeland This new or modified flood hazard appropriate flood insurance premium Security, Federal Emergency Management information, together with the rates for new buildings, and for the Agency.

Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Alaska: City and City and Borough of The Honorable Gary Paxton, Mayor, City Sitka United States Post Office Jun. 4, 2020 ...... 020006 Borough of Sitka Sitka (20–10– and Borough of Sitka, 100 Lincoln and Court House, 100 Lin- (FEMA Docket 0299P). Street, Sitka, AK 99835. coln Street, Sitka, AK 99835. No.: B–2024). Arizona: Cochise (FEMA City of Sierra Vista The Honorable Rick Mueller, Mayor, City Community Development De- Jun. 5, 2020 ...... 040017 Docket No.: (18–09–2056P). of Sierra Vista, 1011 North Coronado partment, 1011 North Coro- B–2024). Drive, Sierra Vista, AZ 85635. nado Drive, Sierra Vista, AZ 85635. Maricopa City of Buckeye (20– The Honorable Jackie A. Meck, Mayor, Engineering Department, 530 Oct. 2, 2020 ...... 040039 (FEMA Dock- 09–1324P). City of Buckeye, 530 East Monroe Ave- East Monroe Avenue, Buck- et, No.: B– nue, Buckeye, AZ 85326. eye, AZ 85326. 2041). Maricopa City of Chandler The Honorable Kevin Hartke, Mayor, City Transportation & Development Oct. 2, 2020 ...... 040040 (FEMA Dock- (19–09–1713P). of Chandler, 175 South Arizona Ave- Department, 215 East Buf- et, No.: B– nue, Chandler, AZ 85225. falo Street, Chandler, AZ 2041). 85225. Maricopa City of Glendale The Honorable Jerry Weiers, Mayor, City City Hall, 5850 West Glendale Oct. 2, 2020 ...... 040045 (FEMA Dock- (20–09–1322P). of Glendale, 5850 West Glendale Ave- Avenue, Glendale, AZ et, No.: B– nue, Glendale, AZ 85301. 85301. 2041). Maricopa City of Litchfield The Honorable Thomas L. Schoaf, Mayor, City Hall, 214 West Wigwam Oct. 20, 2020 ...... 040128 (FEMA Dock- Park (20–09– City of Litchfield Park, 214 West Wig- Boulevard, Litchfield Park, et, No.: B– 0240P). wam Boulevard, Litchfield Park, AZ AZ 85340. 2046 and B– 85340. 2056). Maricopa City of Peoria (20– The Honorable Cathy Carlat, Mayor, City City Hall, 8401 West Monroe Sep. 18, 2020 ...... 040050 (FEMA Dock- 09–0149P). of Peoria, 8401 West Monroe Street, Street, Peoria, AZ 85345. et, No.: B– Peoria, AZ 85345. 2046). Maricopa City of Peoria (20– The Honorable Cathy Carlat, Mayor, City City Hall, 8401 West Monroe Jul. 10, 2020 ...... 040050 (FEMA Dock- 09–0216P). of Peoria, 8401 West Monroe Street, Street, Peoria, AZ 85345. et No.: B– Peoria, AZ 85345. 2024). Maricopa City of Peoria (20– The Honorable Cathy Carlat, Mayor, City City Hall, 8401 West Monroe Oct. 2, 2020 ...... 040050 (FEMA Dock- 09–1322P). of Peoria, 8401 West Monroe Street, Street, Peoria, AZ 85345. et, No.: B– Peoria, AZ 85345. 2041). Maricopa City of Phoenix (20– The Honorable Kate Gallego, Mayor, City Street Transportation Depart- Oct. 16, 2020 ...... 040051 (FEMA Dock- 09–1323P). of Phoenix, 200 West Washington ment, 200 West Washington et, No.: B– Street, 11th Floor, Phoenix, AZ 85003. Street, 5th Floor, Phoenix, 2046). AZ 85003. Maricopa City of Surprise (20– The Honorable Skip Hall, Mayor, City of Public Works Department, En- Sep. 18, 2020 ...... 040053 (FEMA Dock- 09–0147P). Surprise, 16000 North Civic Center gineering Development Serv- et, No.: B– Plaza, Surprise, AZ 85374. ices, 16000 North Civic Cen- 2046). ter Plaza, Surprise, AZ 85374. Maricopa City of Surprise (20– The Honorable Skip Hall, Mayor, City of Public Works Department, En- Sep. 18, 2020 ...... 040053 (FEMA Dock- 09–0619P). Surprise, 16000 North Civic Center gineering Development Serv- et, No.: B– Plaza, Surprise, AZ 85374. ices, 16000 North Civic Cen- 2046). ter Plaza, Surprise, AZ 85374. Maricopa City of Surprise (20– The Honorable Skip Hall, Mayor, City of Public Works Department, En- Oct. 9, 2020 ...... 040053 (FEMA Dock- 09–1326P). Surprise, 16000 North Civic Center gineering Development Serv- et, No.: B– Plaza, Surprise, AZ 85374. ices, 16000 North Civic Cen- 2041). ter Plaza, Surprise, AZ 85374.

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Maricopa City of Tempe (20– The Honorable Mark Mitchell, Mayor, City City Hall, Engineering Depart- Oct. 16, 2020 ...... 040054 (FEMA Dock- 09–1323P). of Tempe, P.O. Box 5002, Tempe, AZ ment, 31 East 5th Street, et, No.: B– 85280. Tempe, AZ 85281. 2046). Maricopa Town of Fountain The Honorable Ginny Dickey, Mayor, Town Hall, 16705 East Avenue Oct. 1, 2020 ...... 040135 (FEMA Dock- Hills (20–09– Town of Fountain Hills, 16705 East Av- of the Fountains, Fountain et, No.: B– 1325P). enue of the Fountains, Fountain Hills, Hills, AZ 85268. 2041). AZ 85268. Maricopa Unincorporated The Honorable Clint L. Hickman, Chair- Flood Control District of Mari- Jul. 10, 2020 ...... 040037 (FEMA Dock- Areas of Maricopa man, Board of Supervisors, Maricopa copa County, 2801 West Du- et No.: B– County (19–09– County, 301 West Jefferson Street, rango Street, Phoenix, AZ 2024). 1002P). 10th Floor, Phoenix, AZ 85003. 85009. Maricopa Unincorporated The Honorable Clint L. Hickman, Chair- Flood Control District of Mari- Sep. 18, 2020 ...... 040037 (FEMA Dock- Areas of Maricopa man, Board of Supervisors, Maricopa copa County, 2801 West Du- et, No.: B– County (20–09– County, 301 West Jefferson Street, rango Street, Phoenix, AZ 2046). 0020P). 10th Floor, Phoenix, AZ 85003. 85009. Maricopa Unincorporated The Honorable Clint L. Hickman, Chair- Flood Control District of Mari- Oct. 2, 2020 ...... 040037 (FEMA Dock- Areas of Maricopa man, Board of Supervisors, Maricopa copa County, 2801 West Du- et, No.: B– County (20–09– County, 301 West Jefferson Street, rango Street, Phoenix, AZ 2041). 1322P). 10th Floor, Phoenix, AZ 85003. 85009. Yavapai (FEMA Town of Prescott The Honorable Kell Palguta, Mayor, Town Town Hall, Engineering Divi- Sep. 21, 2020 ...... 040121 Docket, No.: Valley (20–09– of Prescott Valley, Civic Center, 7501 sion, 7501 East Civic Circle, B–2041). 0224P). East Skoog Boulevard, 4th Floor, Pres- Prescott Valley, AZ 86314. cott Valley, AZ 86314. California: Los Angeles City of Santa Clarita The Honorable Cameron Smyth, Mayor, City Hall, Planning Department, Sep. 23, 2020 ...... 060729 (FEMA Dock- (20–09–0137P). City of Santa Clarita, 23920 Valencia 23920 Valencia Boulevard, et, No.: B– Boulevard, Suite 300, Santa Clarita, CA Suite 300, Santa Clarita, CA 2046 and B– 91355. 91355. 2056). Plumas (FEMA Unincorporated The Honorable Kevin Goss, Chairman, Plumas County Courthouse, Oct. 9, 2020 ...... 060244 Docket, No.: Areas of Plumas Board of Supervisors, Plumas County, 520 Main Street, Quincy, CA B–2041). County (19–09– 520 Main Street, Room 309, Quincy, 95971. 2233P). CA 95971. Riverside City of Banning (19– The Honorable Daniela Andrade, Mayor, Public Works Department, 99 Sep. 23, 2020 ...... 060246 (FEMA Dock- 09–2247P). City of Banning, 99 East Ramsey East Ramsey Street, Ban- et, No.: B– Street, Banning, CA 92220. ning, CA 92220. 2046). Riverside City of Indio (19–09– The Honorable Glenn A. Miller, Mayor, Engineering Services Division, Jun. 26, 2020 ...... 060255 (FEMA Dock- 1450P). City of Indio, City Hall, 100 Civic Center 100 Civic Center Mall, Indio, et No.: B– Mall, Indio, CA 92201. CA 92202. 2024). Riverside City of Moreno Val- The Honorable Yxstian A. Gutierrez, Public Works Department, Sep. 25, 2020 ...... 065074 (FEMA Dock- ley (20–09– Mayor, City of Moreno Valley, 14177 14177 Frederick Street, et, No.: B– 0154P). Frederick Street, Moreno Valley, CA Moreno Valley, CA 92553. 2041). 92553. Riverside Unincorporated The Honorable V. Manuel Perez, Chair- Riverside County Flood Control Jun. 26, 2020 ...... 060245 (FEMA Dock- Areas of Riverside man, Board of Supervisors, Riverside and Water Conservation Dis- et No.: B– County (19–09– County, 4080 Lemon Street, 5th Floor, trict, 1995 Market Street, Riv- 2024). 1450P). Riverside, CA 92501. erside, CA 92501. Sacramento City of Elk Grove The Honorable Steve Ly, Mayor, City of Public Works Department, Oct. 27, 2020 ...... 060767 (FEMA Dock- (20–09–0792P). Elk Grove, 8401 Laguna Palms Way, 8401 Laguna Palms Way, et, No.: B– Elk Grove, CA 95758. Elk Grove, CA 95758. 2046). San Diego City of San Marcos The Honorable Rebecca Jones, Mayor, City Hall, 1 Civic Center Drive, Oct. 16, 2020 ...... 060296 (FEMA Dock- (20–09–0211P). City of San Marcos, 1 Civic Center San Marcos, CA 92069. et, No.: B– Drive, San Marcos, CA 92069. 2046). San Diego City of Vista (20–09– The Honorable Judy Ritter, Mayor, City of City Hall, 200 Civic Center Sep. 23, 2020 ...... 060297 (FEMA Dock- 0048P). Vista, 200 Civic Center Drive, Vista, CA Drive, Vista, CA 92084. et, No.: B– 92084. 2046). Ventura (FEMA City of Simi Valley The Honorable Keith L. Mashburn, Mayor, City Hall, 2929 Tapo Canyon Sep. 23, 2020 ...... 060421 Docket, No.: (18–09–0918P). City of Simi Valley, 2929 Tapo Canyon Road, Simi Valley, CA B–2046). Road, Simi Valley, CA 93063. 93063. Ventura (FEMA City of Simi Valley The Honorable Keith L. Mashburn, Mayor, City Hall, 2929 Tapo Canyon Nov. 6, 2020 ...... 060421 Docket, No.: (18–09–2061P). City of Simi Valley, 2929 Tapo Canyon Road, Simi Valley, CA B–2046). Road, Simi Valley, CA 93063. 93063. Ventura (FEMA City of Simi Valley The Honorable Keith L. Mashburn, Mayor, City Hall, 2929 Tapo Canyon Jul. 1, 2020 ...... 060421 Docket No.: (19–09–1889P). City of Simi Valley, 2929 Tapo Canyon Road, Simi Valley, CA B–2024). Road, Simi Valley, CA 93063. 93063. Ventura (FEMA City of Thousand The Honorable Al Adam, Mayor, City of City Hall, 2100 East Thousand Oct. 8, 2020 ...... 060422 Docket, No.: Oaks (19–09– Thousand Oaks, 2100 Thousand Oaks Oaks Boulevard, Thousand B–2041). 1687P). Boulevard, Thousand Oaks, CA 91362. Oaks, CA 91362. Florida: Duval (FEMA City of Jacksonville The Honorable Lenny Curry, Mayor, City City Hall, 117 West Duval Sep. 25, 2020 ...... 120077 Docket No.: (20–04–0139P). of Jacksonville, 117 West Duval Street, Street, Jacksonville, FL B–2041). Suite 400, Jacksonville, FL 32202. 32202. Pasco (FEMA Unincorporated Mr. Mike Moore, Chairman, Pasco Coun- Pasco County Development Sep. 18, 2020 ...... 120230 Docket No.: Areas of Pasco ty, Board of County Commissioners, Services Branch, 8731 Citi- B–2041). County (19–04– 8731 Citizens Drive, New Port Richey, zens Drive, New Port Richey, 6976P). FL 34654. FL 34654.

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Idaho: Ada (FEMA City of Eagle (19– The Honorable Jason Pierce, Mayor, City City Hall, 660 East Civic Lane, Sep. 25, 2020 ...... 160003 Docket No.: 10–0717P). of Eagle, City Hall, 660 East Civic Eagle, ID 83616. B–2041). Lane, Eagle, ID 83616. Ada (FEMA Unincorporated The Honorable Kendra Kenyon, Chair, Ada County Courthouse, 200 Sep. 25, 2020 ...... 160001 Docket No.: Areas of Ada Board of Ada County Commissioners West Front Street, Boise, ID B–2041). County (19–10– Ada County Courthouse, 200 West 83702. 0717P). Front Street, 3rd Floor, Boise, ID 83702. Iowa: Polk (FEMA City of Johnston The Honorable Paula Dierenfeld, Mayor, City Hall, 6221 Merle Hay Oct. 21, 2020 ...... 190745 Docket No.: (20–07–0961P). City of Johnston, 6221 Merle Hay Road, Johnston, IA 50131. B–2046). Road, Johnston, IA 50131. Polk (FEMA Unincorporated Mr. Tom Hockensmith, Supervisor, Board Polk County Public Works, Oct. 21, 2020 ...... 190901 Docket No.: Areas of Polk of Polk County Supervisors, Polk Coun- 5885 Northeast 14th Street, B–2046). County (20–07– ty Administration Building, 111 Court Des Moines, IA 50313. 0961P). Avenue, Room 300, Des Moines, IA 50309. Illinois: Champaign City of Champaign The Honorable Deborah Frank Feinen, City Hall, 102 North Neil Street, Nov. 12, 2020 ...... 170026 (FEMA Dock- (18–05–1977P). Mayor, City of Champaign, 102 North Champaign, IL 61820. et No.: B– Neil Street, Champaign, IL 61820. 2056). Kane (FEMA City of Aurora (20– The Honorable Richard C. Irvin, Mayor, City Hall, Engineering Depart- Sep. 25, 2020 ...... 170320 Docket No.: 05–2946P). City of Aurora, 44 East Downer Place ment, 44 East Downer Place, B–2041). 3rd Floor, Aurora, IL 60505. Aurora, IL 60505. Kane (FEMA Unincorporated The Honorable Christopher Lauzen, Kane County Government Cen- Sep. 25, 2020 ...... 170896 Docket No.: Areas of Kane Chairman, Kane County Board, Kane ter, Building A, Water Re- B–2041). County (20–05– County Government Center Building A, sources Department, 719 2947P). 719 South Batavia Avenue, Geneva, IL South Batavia Avenue, Ge- 60134. neva, IL 60134. Indiana: Allen (FEMA City of Fort Wayne The Honorable Tom Henry, Mayor, City of Department of Planning Serv- Oct. 8, 2020 ...... 180003 Docket No.: (20–05–2000P). Fort Wayne, Citizens Square Building, ices, 200 East Berry Street, B–2041). 200 East Berry Street, Suite 420, Fort Suite 150, Fort Wayne, IN Wayne, IN 46802. 46802. LaPorte (FEMA City of La Porte (19– The Honorable Tom Dermody, Mayor, City Hall, 801 Michigan Ave- Sep. 25, 2020 ...... 180490 Docket No.: 05–4383P). City of La Porte, 801 Michigan Avenue, nue, LaPorte, IN 46350. B–2041). LaPorte, IN 46350. LaPorte (FEMA Unincorporated Ms. Sheila Matias, President, Commis- LaPorte County Plan Commis- Sep. 25, 2020 ...... 180144 Docket No.: Areas of LaPorte sioner, 555 Michigan Avenue, Suite sion, County Government B–2041). County (19–05– 202, LaPorte, IN 46350. Complex, Suite 503A, 809 4383P). State Street, La Porte, IN 46350. Scott (FEMA Unincorporated Mr. Robert Tobias, President, County Scott County Area Plan Com- Jul. 16, 2020 ...... 180474 Docket No.: Areas of Scott Commissioner District 1, Scott County mission, 1 East McClain Ave- B–2041). County (19–05– Courthouse, Suite 130, 1 East McClain nue, Suite G40, Scottsburg, 2009P). Avenue, Scottsburg, IN 47170. IN 47170. Michigan: Kent (FEMA City of Kentwood The Honorable Stephen Kepley, Mayor, City Hall, 4900 Breton Avenue Oct. 9, 2020 ...... 260107 Docket No.: (19–05–5009P). City of Kentwood, P.O. Box 8848, Southeast, Kentwood, MI B–2041). Kentwood, MI 49518. 49508. Oakland (FEMA Township of Bloom- Mr. Leo Savoie, Township of Bloomfield Bloomfield Township Clerk’s Jun. 29, 2020 ...... 2 260169 Docket No.: field (19–05– Supervisor, P.O. Box 489, Bloomfield Office, 4200 Telegraph B–2024). 2978P). Hills, MI 48303. Road, Bloomfield Hills, MI 48303. Wayne (FEMA Charter Township of The Honorable Andrew Linko, Supervisor, Charter Township Offices, Sep. 24, 2020 ...... 260218 Docket No.: Brownstown (19– Charter Township of Brownstown, 21313 Telegraph Road, B–2041). 05–2936P). 21313 Telegraph Road, Brownstown, Brownstown, MI 48183. MI 48183. Wayne (FEMA City of Taylor (19– The Honorable Rick Sollars, Mayor, City Department of Public Works, Sep. 24, 2020 ...... 260728 Docket No.: 05–2936P). of Taylor, Municipal Offices, 23555 25605 Northline Road, Tay- B–2041). Goddard Road, Taylor, MI 48180. lor, MI 48180. Nebraska: Hall (FEMA City of Grand Island The Honorable Roger Steele, Mayor, City Regional Planning Department, Sep. 25, 2020 ...... 310103 Docket No.: (19–07–1260P). of Grand Island, City Hall, 100 East 1st 100 East 1st Street, Grand B–2041). Street, Grand Island, NE 68801. Island, NE 68801. Hall (FEMA Unincorporated The Honorable Pamela E. Lancaster, Hall County Regional Planning Sep. 25, 2020 ...... 310100 Docket No.: Areas of Hall Chair, Hall County Board of County Department, 100 East 1st B–2041). County (19–07– Commissioners Administration Building, Street, Grand Island, NE 1260P). 121 Street Pine Street, Grand Island, 68801. NE 68801. Lancaster City of Lincoln (20– The Honorable Leirion Gaylor Baird, Building & Safety Department, Sep. 25, 2020 ...... 315273 (FEMA Dock- 07–0142P). Mayor, City of Lincoln, 555 South 10th 555 South 10th Street, Lin- et No.: B– Street, Suite 301, Lincoln, NE 68508. coln, NE 68508. 2046). Nevada: Clark (FEMA City of Mesquite The Honorable Allan Litman, Mayor, City Office of The City Engineer, 10 Oct. 5, 2020 ...... 320035 Docket No.: (20–09–1320P). of Mesquite, 10 East Mesquite Boule- East Mesquite Boulevard, B–2041). vard, Mesquite, NV 89027. Mesquite, NV 89027.

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Clark (FEMA Unincorporated The Honorable Marilyn Kirkpatrick, Chair, Clark County Office of the Di- Jul. 3, 2020 ...... 320003 Docket No.: Areas of Clark Board of Commissioners, Clark County, rector of Public Works, 500 B–2024). County (19–09– 500 South Grand Central Parkway, 6th South Grand Central Park- 1371P). Floor, Las Vegas, NV 89106. way, 2nd Floor, Las Vegas, NV 89155. Nye (FEMA Unincorporated The Honorable John Koenig, Chairman, Nye County Department of Oct. 1, 2020 ...... 320018 Docket No.: Areas of Nye Board of Commissioners, Nye County, Planning, 250 North Highway B–2041). County (20–09– 2100 East Walt Williams Drive, Suite 160 Suite 1, Pahrump, NV 1321P). 100, Pahrump, NV 89048. 89060. Washoe (FEMA Unincorporated The Honorable Bob Lucey, Chairman, Washoe County Administration Oct. 8, 2020 ...... 320019 Docket No.: Areas of Washoe Board of Commissioners, Washoe Building, Department of Pub- B–2046). County (20–09– County, 1001 East 9th Street, Building lic Works, 1001 East 9th 0371P). A, Reno, NV 89512. Street, Reno, NV 89512. New Jersey: Essex (FEMA Township of Belle- The Honorable Michael Melham, Mayor, Engineering Office, 152 Wash- Sep. 25, 2020 ...... 340177 Docket No.: ville (19–02– Township of Belleville, 152 Washington ington Avenue, Belleville, NJ B–2046). 0938P). Avenue #1, Belleville, NJ 07109. 07109. Union (FEMA Borough of Roselle The Honorable Christine Dansereau, Borough Municipal Building, Sep. 25, 2020 ...... 340472 Docket No.: (20–02–0602X). Mayor, Borough of Roselle, Borough 210 Chestnut Street, Ro- B–2041). Hall, 210 Chestnut Street, Roselle, NJ selle, NJ 07203. 07203. New York: Nassau (FEMA Village of Kings The Honorable Michael C. Kalnick, Village Hall, 32 Stepping Stone Aug. 5, 2020 ...... 360473 Docket No.: Point (19–02– Mayor, Village of Kings Point, Village Lane, Kings Point, NY B–2024). 0330P). Hall, 32 Stepping Stone Lane, Kings 11024. Point, NY 11024. Westchester City of New Rochelle The Honorable Noam Bramson, Mayor, City Hall/Department of Public Sep. 4, 2020 ...... 360922 (FEMA Dock- (19–02–1191P). City of New Rochelle, 515 North Ave- Works, 515 North Avenue, et No.: B– nue, New Rochelle, NY 10801. New Rochelle, NY 10801. 2024). Westchester Village of Mamaro- The Honorable Thomas A. Murphy, Building Inspector, The Regatta Dec. 3, 2020 ...... 360916 (FEMA Dock- neck (20–02– Mayor, Village of Mamaroneck, 123 Building, 123 Mamaroneck et No.: B– 0294P). Mamaroneck Avenue, Mamaroneck, NY Avenue, Mamaroneck, NY 2046). 10543. 10543. Ohio: Cuyahoga City of North The Honorable Kevin M. Kennedy, Mayor, City Hall, 5200 Dover Center Oct. 29, 2020 ...... 390120 (FEMA Dock- Olmsted (19–05– City of North Olmsted, 5200 Dover Road, North Olmsted, OH et No.: B– 3365P). Center Road, North Olmsted, OH 44070. 2046). 44070. Cuyahoga City of Westlake The Honorable Dennis M. Clough, Mayor, City Hall, 27700 Hilliard Boule- Oct. 29, 2020 ...... 390136 (FEMA Dock- (19–05–3365P). City of Westlake, 27700 Hilliard Boule- vard, Westlake, OH 44145. et No.: B– vard, Westlake, OH 44145. 2046). Texas: Dallas (FEMA City of Dallas (19– The Honorable Eric Johnson, Mayor, City Trinity Watershed Management Sep. 18, 2020 ...... 480171 Docket No.: 06–3571P). of Dallas, 1500 Marilla Street, Room Department, Flood Plain and B–2041). 5EN, Dallas, TX 75201. Drainage Management, 320 East Jefferson Blvd. Room 307, Dallas, TX 75203. Dallas (FEMA City of Dallas (20– The Honorable Eric Johnson, Mayor, City Trinity Watershed Management Oct. 8, 2020 ...... 480171 Docket No.: 06–0582P). of Dallas, 1500 Marilla Street, Room Department, Flood Plain and B–2041). 5EN, Dallas, TX 75201. Drainage Management, 320 East Jefferson Blvd. Room 307, Dallas, TX 75203. Dallas (FEMA Town of Highland The Honorable Margo Goodwin, Mayor, Engineering Department, 4700 Sep. 18, 2020 ...... 480178 Docket No.: Park (19–06– Town of Highland Park, 4700 Drexel Drexel Drive, Highland Park, B–2041). 3290P). Drive, Highland Park, TX 75205. TX 75205. Tarrant (FEMA City of Arlington (18– The Honorable Jeff Williams, Mayor, City City Hall, 101 West Abram Sep. 25, 2020 ...... 485454 Docket No.: 06–3756P). of Arlington, City Hall, P.O. Box 90231, Street, Arlington, TX 76010. B–2041). Arlington, TX 76010. Tarrant (FEMA City of Arlington (19– The Honorable Jeff Williams, Mayor, City City Hall, 101 West Abram Oct. 22, 2020 ...... 485454 Docket No.: 06–0599P). of Arlington, City Hall, P.O. Box 90231, Street, Arlington, TX 76010. B–2046). Arlington, TX 76010. Tarrant (FEMA City of Arlington (20– The Honorable Jeff Williams, Mayor, City City Hall, 101 West Abram Sep. 24, 2020 ...... 485454 Docket No.: 06–2305P). of Arlington, City Hall, P.O. Box 90231, Street, Arlington, TX 76010. B–2046). Arlington, TX 76010. Tarrant (FEMA City of Fort Worth The Honorable Betsy Price, Mayor, City Department of Transportation Sep. 25, 2020 ...... 480596 Docket No.: (18–06–3756P). of Fort Worth, 200 Texas Street, Fort and Public Works, 200 Texas B–2041). Worth, TX 76102. Street, Fort Worth, TX 76102. Tarrant (FEMA City of Grand Prairie The Honorable Ron Jensen, Mayor, City Community Development Cen- Sep. 24, 2020 ...... 485472 Docket No.: (20–06–2305P). of Grand Prairie, P.O. Box 534045, ter, 206 West Church Street, B–2046). Grand Prairie, TX 45053. Grand Prairie, TX 75050. Washington: Clark (FEMA City of Vancouver The Honorable Anne McEnerny-Olge, City Hall, 415 West 6th Street, Sep. 18, 2020 ...... 530027 Docket No.: (20–10–0406P). Mayor, City of Vancouver, City Hall, Vacouver, WA 98660. B–2041). 415 West 6th Street, Vancouver, WA 98660. Mason (FEMA Unincorporated The Honorable Sharon Trask, Chair, Mason County Public Works, Oct. 16, 2020 ...... 530115 Docket No.: Areas of Mason Board of Commissioners, Mason Coun- 100 West Public Works B–2041). County (20–10– ty, 411 North 5th Street, Shelton, WA Drive, Shelton, WA 98584. 0789P). 98584.

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Location and Community State and county case No. Chief executive officer of community Community map repository Date of modification No.

Wisconsin: Brown (FEMA Unincorporated The Honorable Patrick Moynihan, Jr., Brown County, Zoning Office, Sep. 18, 2020 ...... 550020 Docket No.: Areas of Brown Chair, County Board of Supervisors, 305 East Walnut Street, B–2041). County (19–05– Brown County, 305 East Walnut Street, Green Bay, WI 54305. 3386P). Green Bay, WI 54305. Brown (FEMA Village of The Honorable Mary Kardoskee, Presi- Village Hall, 2155 Holmgren Oct. 16, 2020 ...... 550600 Docket No.: Ashwaubenon dent, Village of Ashwaubenon, Village Way, Ashwaubenon, WI B–2046) (20–05–2968P). Hall, 2155 Holmgren Way, 54304. Ashwaubenon, WI 54304. Jefferson City of Jefferson The Honorable Dale Oppermann, Mayor, City Hall, 317 South Main Nov. 6, 2020 ...... 555561 (FEMA Dock- (20–05–1721P). City of Jefferson, 317 South Main Street, Jefferson, WI 53549. et No.: B– Street, Jefferson, WI 53549. 2046) Milwaukee City of West Allis The Honorable Dan Devine, Mayor, City City Hall, 7525 West Greenfield Oct. 15, 2020 ...... 550285 (FEMA Dock- (20–05–2969X). of West Allis, 7525 West Greenfield Av- Avenue, West Allis, WI et No.: B– enue, West Allis, WI 53214. 53214. 2041). Waukesha City of Brookfield The Honorable Steven V. Ponto, Mayor, City Hall, 2000 North Calhoun Sep. 24, 2020 ...... 550478 (FEMA Dock- (20–05–1573P). City of Brookfield, 2000 North Calhoun Road, Brookfield, WI 53005. et No.: B– Road, Brookfield, WI 53005. 2041).

[FR Doc. 2020–28222 Filed 12–21–20; 8:45 am] DEPARTMENT OF HOMELAND SUMMARY: The Department of Homeland BILLING CODE 9110–12–P SECURITY Security is publishing the Agreement Between the Government of the United Agreement Between the Government States of America and the Government of the United States of America and the of the Republic of El Salvador for Government of the Republic of El Cooperation in the Examination of Salvador for Cooperation in the Protection Claims. The text of the Examination of Protection Claims Agreement is set out below.

AGENCY: Department of Homeland Tyler Houlton, Security, Office of Strategy, Policy, and Assistant Secretary for International Affairs, Plans. Office of Strategy, Policy, and Plans, U.S. Department of Homeland Security. ACTION: Notice of Agreement. BILLING CODE 9110–9M–P

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[FR Doc. 2020–28136 Filed 12–21–20; 8:45 am] Review—Open for Public Comments’’ or DEPARTMENT OF THE INTERIOR BILLING CODE 9110–9M–C by using the search function. Fish and Wildlife Service FOR FURTHER INFORMATION CONTACT: Colette Pollard, Reports Management [FWS–R8–ES–2020–N152; DEPARTMENT OF HOUSING AND Officer, QDAM, Department of Housing FXES11140800000–20212FF08ECAR00] URBAN DEVELOPMENT and Urban Development, 451 7th Street Endangered and Threatened Species; SW, Washington, DC 20410; email [Docket No. FR–7024–C–55] Receipt of an Incidental Take Permit Colette Pollard at Colette.Pollard@ Application for the California Condor; 30-Day Notice of Proposed Information hud.gov or telephone 202–402–3400. Availability of Draft Conservation Plan Collection: Quality Control Persons with hearing or speech and Draft Environmental Assessment; Requirements for Direct Endorsement impairments may access this number Manzana Wind Power Project, Kern Lenders; OMB Control No.: 2502–0600: through TTY by calling the toll-free County, California Correction Federal Relay Service at (800) 877–8339. AGENCY: This is not a toll-free number. Copies Fish and Wildlife Service, AGENCY: Office of the Chief Information Interior. Officer, HUD. of available documents submitted to OMB may be obtained from Ms. Pollard. ACTION: Notice of availability; request ACTION: Notice; correction. for public comments. SUPPLEMENTARY INFORMATION: SUMMARY: On December 17, 2020, HUD SUMMARY: We, the U.S. Fish and published a 30-day information Correction Wildlife Service (Service), have received collection notice for OMB Control No. an application from Manzana Wind LLC 2502–0600. This notice is to correct the In the Federal Register of December 17, 2020, in FR Doc. 2020–27771, on for an incidental take permit under the Average Hours per Response. Endangered Species Act of 1973, as page 81947, in the third column, correct ADDRESSES: Interested persons are amended. The permit would authorize the Average Hours per Response from invited to submit comments regarding take of the federally endangered 25. to 0.25. this proposal. Written comments and California condor (Gymnogyps recommendations for the proposed Colette Pollard, californianus) incidental to otherwise information collection should be sent Department reports Management Officer, lawful activities associated with within 30 days of publication of this Office of the Chief Information Officer. operation of the existing Manzana Wind notice to www.reginfo.gov/public/do/ [FR Doc. 2020–28197 Filed 12–21–20; 8:45 am] Power Project. We invite comments on Start Printed Page 15501PRAMain. Find the draft conservation plan and the draft this particular information collection by BILLING CODE 4210–67–P environmental assessment, which we selecting ‘‘Currently under 30-day have prepared pursuant to the National

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Environmental Policy Act. We will take the ESA (16 U.S.C. 1539), we may issue Public Comments comments into consideration before permits to authorize take of listed fish If you wish to comment on the draft deciding whether to issue an incidental and wildlife species that is incidental conservation plan and draft take permit. to, and not the purpose of, carrying out environmental assessment, you may DATES: We are extending the standard an otherwise lawful activity. submit comments by one of the methods 30-day comment period by 15 days to Regulations governing permits for in ADDRESSES. allow additional time for public endangered and threatened species are comment. Written comments should be set forth in title 50 of the Code of Public Availability of Comments received on or before February 5, 2021. Federal Regulations at part 17, sections You may submit comments by one of ADDRESSES: 17.22 and 17.32. the methods shown under ADDRESSES. To obtain documents: You may view The National Environmental Policy All comments and materials we receive or download copies of the draft Act (NEPA; 42 U.S.C. 4321 et seq.) in response to this request will become conservation plan and draft requires Federal agencies to analyze part of the decision record associated environmental assessment at https:// their proposed actions to determine with this action. Before including your www.fws.gov/carlsbad/, or you may whether the actions may significantly address, phone number, email address, request hardcopies of the draft affect the human environment. In the or other personal identifying documents by contacting our Palm NEPA analysis, the Federal agency will information in your comment, you Springs office (see below). identify the effects, as well as possible should be aware that your entire To submit written comments: Please mitigation for effects on environmental comment, including your personal submit your written comments by either resources, that could occur with the identifying information, may be made of the following methods: implementation of the proposed action publicly available at any time. While D Email: [email protected]. and alternatives. The Federal action in you can ask us in your comment to Include ‘‘Manzana Wind Power this case is the Service’s proposed withhold your personal identifying Incidental Take Permit’’ in the subject issuance of an incidental take permit for information from public review, we line of the message. the federally endangered California cannot guarantee that we will be able to D U.S. Mail: Assistant Field condor. do so. Supervisor, Palm Springs Fish and Wildlife Office, U.S. Fish and Wildlife Permit Application Authority Service, 777 East Tahquitz Canyon Way, We issue this notice pursuant to Suite 208, Palm Springs, CA 92284. The applicant has submitted a draft section 10(c) of the ESA (16 U.S.C. We request that you send written conservation plan that describes the 1539) and its implementing regulations comments by only the methods activities covered by the permit, such as (50 CFR 17.22), and NEPA (42 U.S.C. described above. the operation of wind turbines and other 4321 et seq.) and its implementing FOR FURTHER INFORMATION CONTACT: specified activities associated with regulations (40 CFR 1506.6 and 43 CFR Peter Sanzenbacher, Fish and Wildlife project components. To minimize the 46.305). Biologist, by mail at Palm Springs Fish risk of incidental take, the applicant Scott Sobiech, and Wildlife Office (address above), by will maintain a program to detect phone at 760–322–2070, extension 425, condors approaching the project and Field Supervisor, Carlsbad Fish and Wildlife Office, Carlsbad, California. or via email at peter_sanzenbacher@ temporarily curtail operating wind fws.gov. If you use a turbines when appropriate; the [FR Doc. 2020–28253 Filed 12–21–20; 8:45 am] telecommunications device for the deaf, conservation plan also includes BILLING CODE 4333–15–P hard of hearing, or speech disabled, adaptive management to allow for maintaining the protection of condors as please call the Federal Relay Service at DEPARTMENT OF THE INTERIOR 800–877–8339. technologies, condor behavior, and SUPPLEMENTARY INFORMATION: We have other factors change over time. To Fish and Wildlife Service received an application from Manzana mitigate the impact of the potential [FWS–R7–NWRS–2020–N158; Wind LLC (applicant) for an incidental incidental take, the applicant proposes to work with an existing captive FF07R08000F–XRS–1263–0700000–201; take permit under the Endangered OMB Control Number 1018–0141] Species Act of 1973, as amended (ESA; breeding facility to fund the production 16 U.S.C. 1531 et seq.). The application of additional condors for release into the Agency Information Collection addresses the potential take of the wild. The Service and applicant used a Activities; Submission to the Office of federally endangered California condor population viability analysis to inform Management and Budget for Review (condor), incidental to otherwise lawful the mitigation strategy and ensure that and Approval; Alaska Guide Service activities at the Manzana Wind Power the level of potential injury or mortality Evaluation Project (project), as described in the of condors permitted at the project applicant’s draft conservation plan. The would not impede recovery of the AGENCY: Fish and Wildlife Service, project began operations in 2012 and is species. The population viability Interior. in the Antelope Valley region of Kern analysis report is appended to the draft ACTION: Notice of information collection; County, California, along the southern conservation plan and the draft request for comment. foothills of the Tehachapi Mountains. environmental assessment. A ‘‘Frequently Asked Questions’’ SUMMARY: In accordance with the Background document for the population viability Paperwork Reduction Act of 1995, we, Section 9 of the ESA (16 U.S.C. 1538) analysis is also attached to the draft the U.S. Fish and Wildlife Service and Federal regulations promulgated environmental assessment. The draft (Service), are proposing to renew an pursuant to section 4(d) of the ESA (16 conservation plan and the draft information collection. U.S.C. 1533) prohibit the take of environmental assessment consider DATES: Interested persons are invited to endangered species without special alternatives to the proposed action, submit comments on or before January exemption. Under section 10(a)(1)(B) of including a no action alternative. 21, 2021.

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ADDRESSES: Written comments and (2) The accuracy of our estimate of the • Information on the services recommendations for the proposed burden for this collection of received, such as the client’s information collection should be sent information, including the validity of expectations, safety, environmental within 30 days of publication of this the methodology and assumptions used; impacts, and client’s overall notice to www.reginfo.gov/public/do/ (3) Ways to enhance the quality, satisfaction. PRAMain. Find this particular utility, and clarity of the information to We encourage respondents to provide information collection by selecting be collected; and any additional comments that they wish ‘‘Currently under Review—Open for (4) How might the agency minimize regarding the guide service or refuge Public Comments’’ or by using the the burden of the collection of experience, and ask whether or not they search function. Please provide a copy information on those who are to wish to be contacted for additional of your comments to the Service respond, including through the use of information. Information Collection Clearance appropriate automated, electronic, The above information, in Officer, U.S. Fish and Wildlife Service, mechanical, or other technological combination with State-required guide MS: PRB/PERMA (JAO/3W), 5275 collection techniques or other forms of activity reports and contacts with guides Leesburg Pike, Falls Church, VA 22041– information technology, e.g., permitting and clients in the field, provides a 3803 (mail); or by email to Info_Coll@ electronic submission of response. comprehensive method for monitoring fws.gov. Please reference OMB Control Comments that you submit in permitted commercial guide activities. Number 1018–0141 in the subject line of response to this notice are a matter of A regular program of client evaluation your comments. public record. Before including your helps refuge managers detect potential problems with guide services so that we FOR FURTHER INFORMATION CONTACT: address, phone number, email address, can take corrective actions promptly. In Madonna L. Baucum, Service or other personal identifying addition, we use this information during Information Collection Clearance information in your comment, you the competitive selection process for big Officer, by email at [email protected], should be aware that your entire game and sport fishing guide permits to or by telephone at (703) 358–2503. comment—including your personal evaluate an applicant’s ability to Individuals who are hearing or speech identifying information—may be made provide a quality guiding service. impaired may call the Federal Relay publicly available at any time. While The Service is actively reviewing the Service at 1–800–877–8339 for TTY you can ask us in your comment to current evaluation form to identify ways assistance. You may also view the withhold your personal identifying information from public review, we to improve the information collected to: information collection request (ICR) at • cannot guarantee that we will be able to Provide more quantifiable and http://www.reginfo.gov/public/do/ defensible data; PRAMain. do so. • Abstract: We collect information via Provide statistical data for each SUPPLEMENTARY INFORMATION: In completed and submitted form; FWS Form 3–2349 (Alaska Guide • accordance with the Paperwork Service Evaluation) to help us evaluate Provide more quantifiable rather Reduction Act of 1995 (PRA, 44 U.S.C. than qualitative information; and commercial guide services on our • 3501 et seq.) and 5 CFR 1320.8(d)(1), we national wildlife refuges in the State of Translate the client responses into provide the general public and other Alaska (State). The National Wildlife useful information, in order for refuge Federal agencies with an opportunity to Refuge Administration Act of 1966, as management to make informed comment on new, proposed, revised, amended (16 U.S.C. 668dd–ee), decisions. The Service initially planned to and continuing collections of authorizes us to permit uses, including submit the new form (tentatively information. This helps us assess the commercial visitor services, on national assigned FWS Form 3–2538, ‘‘Alaska impact of our information collection wildlife refuges when we find the Guide Service Evaluation’’) to OMB for requirements and minimize the public’s activity to be compatible with the approval to conduct usability testing reporting burden. It also helps the purposes for which the refuge was under OMB Control No. 1090–0011, public understand our information established. With the objective of ‘‘DOI Generic Clearance for the collection requirements and provide the making available a variety of quality Collection of Qualitative Feedback on requested data in the desired format. visitor services for wildlife-dependent Agency Service Delivery,’’ in time to On August 26, 2020, we published in recreation on National Wildlife Refuge pretest it during the 2020 Alaska guide the Federal Register (85 FR 52631) a System lands, we issue permits for season. However, the pandemic notice of our intent to request that OMB commercial guide services, including significantly limited the number of approve this information collection. In big game hunting, sport fishing, wildlife guide trips during the 2020 guide that notice, we solicited comments for viewing, river trips, and other guided season, necessitating the usability 60 days, ending on October 26, 2020. activities. We use FWS Form 3–2349 as testing be conducted during the 2021 We received no comments in response a method to: Alaska guide season (and possibly the to that notice. • Monitor the quality of services 2022 season). At the conclusion of the As part of our continuing effort to provided by commercial guides. reduce paperwork and respondent • Gauge client satisfaction with the usability testing, the Service will burdens, we are again soliciting services. evaluate all feedback of the new comments from the public and other • Assess the impacts of the activity evaluation form to determine whether Federal agencies on the proposed on refuge resources. additional updates need to be made to information collection request (ICR) that The client is the best source of it. At that time, we will begin the is described below. We are especially information on the quality of process to initiate a revision to this interested in public comment commercial guiding services. We information collection by publishing the addressing the following: collect: required notices in the Federal Register (1) Whether or not the collection of • Client name. announcing to the public our intention information is necessary for the proper • Guide name(s). to submit the final evaluation form to performance of the functions of the • Type of guided activity. OMB for approval prior to the calendar agency, including whether or not the • Dates and location of guided year 2023 Alaska guide season. In information will have practical utility; activity. addition, the Service will provide the

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Alaska National Interest Lands ACTION: Notice of receipt of permit of listed species unless a Federal permit Conservation Act (ANILCA) Coordinator applications; request for comments. is issued that allows such activity. The for the State of Alaska with a copy of the ESA’s definition of ‘‘take’’ includes such SUMMARY: We, the U.S. Fish and proposed new guide form for review/ activities as pursuing, harassing, Wildlife Service, have received comment. trapping, capturing, or collecting, in applications for permits to conduct Title of Collection: Alaska Guide addition to hunting, shooting, harming, activities intended to enhance the Service Evaluation. wounding, or killing. OMB Control Number: 1018–0141. propagation or survival of endangered Form Number: FWS Form 3–2349. or threatened species under the A recovery permit issued by us under Type of Review: Extension of a Endangered Species Act. We invite the section 10(a)(1)(A) of the ESA currently approved collection. public and local, State, Tribal, and authorizes the permittee to conduct Respondents/Affected Public: Clients Federal agencies to comment on these activities with endangered or threatened of permitted commercial guide service applications. Before issuing any of the species for scientific purposes that providers. requested permits, we will take into promote recovery or for enhancement of Total Estimated Number of Annual consideration any information that we propagation or survival of the species. Respondents: 264. receive during the public comment These activities often include such Total Estimated Number of Annual period. prohibited actions as capture and Responses: 264. Estimated Completion Time per DATES: We must receive your written collection. Our regulations Response: 15 minutes. comments on or before January 21, implementing section 10(a)(1)(A) for Total Estimated Number of Annual 2021. these permits are found in the Code of Burden Hours: 66. ADDRESSES: Document availability and Federal Regulations at 50 CFR 17.22 for Respondent’s Obligation: Voluntary. comment submission: Submit requests endangered wildlife species, 50 CFR Frequency of Collection: One time, for copies of the applications and 17.32 for threatened wildlife species, 50 following use of commercial guide related documents and submit any CFR 17.62 for endangered plant species, services. comments by one of the following and 50 CFR 17.72 for threatened plant Total Estimated Annual Nonhour methods. All requests and comments species. Burden Cost: None. should specify the applicant name(s) An agency may not conduct or Permit Applications Available for and application number(s) (e.g., sponsor and a person is not required to Review and Comment respond to a collection of information TEXXXXXX). • Email: [email protected]. unless it displays a currently valid OMB Proposed activities in the following • U.S. Mail: Susie Tharratt, Regional control number. permit requests are for the recovery and Recovery Permit Coordinator, U.S. Fish The authority for this action is the enhancement of propagation or survival and Wildlife Service, 2800 Cottage Way, Paperwork Reduction Act of 1995 (44 of the species in the wild. The ESA Room W–2606, Sacramento, CA 95825. U.S.C. 3501 et seq.). requires that we invite public comment FOR FURTHER INFORMATION CONTACT: before issuing these permits. Dated: December 17, 2020. Susie Tharratt, via phone at 916–414– Accordingly, we invite local, State, Madonna Baucum, 6561, via email at [email protected], Tribal, and Federal agencies and the Information Collection Clearance Officer, U.S. or via the Federal Relay Service at 1– public to submit written data, views, or Fish and Wildlife Service. 800–877–8339 for TTY assistance. [FR Doc. 2020–28260 Filed 12–21–20; 8:45 am] arguments with respect to these SUPPLEMENTARY INFORMATION: We, the applications. The comments and BILLING CODE 4333–15–P U.S. Fish and Wildlife Service, invite recommendations that will be most the public to comment on applications useful and likely to influence agency DEPARTMENT OF THE INTERIOR for permits under section 10(a)(1)(A) of the Endangered Species Act, as decisions are those supported by quantitative information or studies. Fish and Wildlife Service amended (ESA; 16 U.S.C. 1531 et seq.). The requested permits would allow the [FWS–R8–ES–2020–N161; applicants to conduct activities FXES11130800000–212–FF08E00000] intended to promote recovery of species Endangered and Threatened Species; that are listed as endangered or Receipt of Recovery Permit threatened under the ESA. Applications Background AGENCY: Fish and Wildlife Service, With some exceptions, the ESA Interior. prohibits activities that constitute take

Application No. Applicant, city, state Species Location Take activity Permit action

TE–115370 ...... Gage Dayton, Santa Cruz, Cali- • Ohlone tiger beetle (Cicindela CA ...... Capture, handle, release, habi- Amend. fornia. ohlone). tat enhancement, mark bur- rows, and translocation. TE–88650D ...... Joshua Goodwin, Rocklin, Cali- • California tiger salamander CA ...... Capture, handle, and release .... New. fornia. (Santa Barbara County and Sonoma County Distinct Pop- ulation Segments (DPSs)) (Ambystoma californiense). TE–72045A ...... Alisa Zych, Oceanside, Cali- • Southwestern willow CA ...... Play taped vocalizations ...... Renew. fornia. flycatcher (Empidonax traillii extimus). TE–52816B ...... David Davis, Barstow, California • Southwestern willow CA ...... Play taped vocalizations ...... Renew and Amend. flycatcher (Empidonax traillii extimus).

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Application No. Applicant, city, state Species Location Take activity Permit action

TE–829554 ...... Barbara Kus, San Diego, Cali- • Southwestern willow CA, NV, NM, Play taped vocalizations, mon- Renew. fornia. flycatcher (Empidonax traillii AZ. itor nests, capture, collect ge- extimus). netic samples, handle, band, • Least Bell’s vireo (Vireo bellii conduct training workshops, pusillus). and remove brown-headed cowbird (Molothrus ater) eggs and chicks from parasitized nests. TE–29522A ...... Kenneth Gilliland, Ventura, Cali- • California tiger salamander CA ...... Capture, handle, release, mon- Renew and amend. fornia. (Santa Barbara County and itor nests, remove brown- Sonoma County Distinct Pop- headed cowbird (Molothrus ulation Segments (DPSs)) ater) eggs and chicks from (Ambystoma californiense). parasitized nests, translocate, erect nest exclosures, collect infertile eggs, swab, mark, and attach radio transmitters. • Least Bell’s vireo (Vireo bellii pusillus). • California least tern (Sterna antillarum browni). • Arroyo (=arroyo south- western) toad (Anaxyrus californicus). PER0002114 ...... Scott Whitman ...... • California tiger salamander CA ...... Capture, handle, release, and New. (Santa Barbara County and collect vouchers. Sonoma County Distinct Pop- ulation Segments (DPSs)) (Ambystoma californiense). • Conservancy fairy shrimp (Branchinecta conservatio). • Longhorn fairy shrimp (Branchinecta longiantenna). • Vernal pool tadpole shrimp (Lepidurus packardi). TE–67253D ...... City of Eureka, Eureka, Cali- • Behren’s silverspot butterfly CA ...... Capture, handle, captive breed, Amend. fornia. (Speyeria zerene behrensii). captive rear, translocate, and release. PER0002166 ...... Danielle Dillard, College Station, • Giant kangaroo rat CA ...... Capture, handle, examine for New. Texas. (Dipodomys ingens). mites, collect fecal samples, and humanely euthanize for disease research.

Public Availability of Comments Authority the U.S. Fish and Wildlife Service (Service), are proposing to renew an Written comments we receive become We publish this notice under section 10(c) of the Endangered Species Act of information collection. part of the administrative record DATES: Interested persons are invited to associated with this action. Before 1973, as amended (16 U.S.C. 1531 et seq.). submit comments on or before February including your address, phone number, 22, 2021. email address, or other personal Angela Picco, ADDRESSES: Send your comments on the identifying information in your Regional Endangered Species Program information collection request (ICR) by comment, you should be aware that Manager, Pacific Southwest Region, mail to the Service Information your entire comment—including your Sacramento, California. Collection Clearance Officer, U.S. Fish personal identifying information—may [FR Doc. 2020–28180 Filed 12–21–20; 8:45 am] and Wildlife Service, MS: PRB (JAO/ be made publicly available at any time. BILLING CODE 4333–15–P 3W), 5275 Leesburg Pike, Falls Church, While you can request in your comment VA 22041–3803 (mail); or by email to that we withhold your personal [email protected]. Please reference identifying information from public DEPARTMENT OF THE INTERIOR Office of Management and Budget (OMB) Control Number 1018–0148 in review, we cannot guarantee that we Fish and Wildlife Service will be able to do so. All submissions the subject line of your comments. from organizations or businesses, and [FWS–HQ–ES–2020–N146; FOR FURTHER INFORMATION CONTACT: To from individuals identifying themselves FXHC11140900000–212–FF09E33000; OMB request additional information about as representatives or officials of Control Number 1018–0148] this ICR, contact Madonna L. Baucum, Service Information Collection organizations or businesses, will be Agency Information Collection Clearance Officer, by email at Info_ made available for public disclosure in Activities; Land-Based Wind Energy [email protected], or by telephone at (703) their entirety. Guidelines 358–2503. Individuals who are hearing Next Steps AGENCY: Fish and Wildlife Service, or speech impaired may call the Federal Interior. Relay Service at 1–800–877–8339 for If we decide to issue permits to any TTY assistance. of the applicants listed in this notice, ACTION: Notice of information collection; SUPPLEMENTARY INFORMATION: In we will publish a notice in the Federal request for comment. accordance with the Paperwork Register. SUMMARY: In accordance with the Reduction Act (PRA, 44 U.S.C. 3501 et Paperwork Reduction Act of 1995, we, seq.) and its implementing regulations

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at 5 CFR 1320.8(d)(1), all information and State agencies, Tribes, and construction studies conducted at collections require approval under the academia to develop the voluntary project sites, bird and bat conservation PRA. We may not conduct or sponsor Land-Based Wind Energy Guidelines strategies, or any other record that and you are not required to respond to (Guidelines; http://www.fws.gov/ supports a developer’s adherence to the a collection of information unless it windenergy) to provide a structured, Guidelines. The extent of the displays a currently valid OMB control scientific process for addressing wildlife documentation will depend on the number. conservation concerns at all stages of conditions of the site being developed. As part of our continuing effort to land-based wind energy development. Sites with greater risk of impacts to reduce paperwork and respondent Released in 2012, the Guidelines wildlife and habitats will likely involve burdens, we invite the public and other promote effective communication more extensive communication with the Federal agencies to comment on new, among wind energy developers and Service and longer durations of pre- and proposed, revised, and continuing Federal, State, Tribal, and local post-construction studies than sites with collections of information. This helps us conservation agencies. When used in little risk. assess the impact of our information concert with appropriate regulatory Distributed or community-scale wind collection requirements and minimize tools, the Guidelines are the best energy projects are unlikely to have the public’s reporting burden. It also practical approach for conserving significant adverse impacts to wildlife helps the public understand our species of concern. and their habitats. The Guidelines information collection requirements and The Guidelines discuss various risks recommend that developers of these provide the requested data in the to species of concern from wind energy small-scale projects conduct the desktop desired format. projects, including collisions with wind analysis described in Tier 1 or Tier 2 We are especially interested in public turbines and associated infrastructure; using publicly available information to comment addressing the following: loss and degradation of habitat from determine whether they should (1) Whether or not the collection of turbines and infrastructure; communicate with the Service. Since information is necessary for the proper fragmentation of large habitat blocks such project designs usually include a performance of the functions of the into smaller segments that may not single turbine associated with existing agency, including whether or not the support sensitive species; displacement development, conducting a Tier 1 or information will have practical utility; and behavioral changes; and indirect Tier 2 analysis for distributed or (2) The accuracy of our estimate of the effects such as increased predator community-scale wind energy projects burden for this collection of populations or introduction of invasive should incur limited non-hour burden information, including the validity of plants. The Guidelines assist developers costs. For such projects, if there is no the methodology and assumptions used; in identifying species of concern that potential risk identified, a developer (3) Ways to enhance the quality, may potentially be affected by proposed will have no need to communicate with utility, and clarity of the information to projects, including but not limited to: the Service regarding the project or to be collected; and • Migratory birds; conduct studies described in Tiers 3, 4, (4) How might the agency minimize • Bats; and 5. the burden of the collection of • Bald and golden eagles, and other Adherence to the Guidelines is information on those who are to birds of prey; voluntary. Following the Guidelines respond, including through the use of • Prairie chickens and sage grouse; does not relieve any individual, appropriate automated, electronic, and company, or agency of the responsibility mechanical, or other technological • Species that have been identified as to comply with applicable laws and collection techniques or other forms of candidates, or proposed or listed under regulations (i.e., species protected by information technology, e.g., permitting the Endangered Species Act of 1973, as the Endangered Species Act and/or Bald electronic submission of response. amended (16 U.S.C. 1531 et seq.). and Golden Eagle Protection Act (16 Comments that you submit in The Guidelines follow a tiered U.S.C. 668–668c)). response to this notice are a matter of approach. The wind energy developer This information collection was first public record. We will include or begins at Tier 1 or Tier 2, which entails approved by OMB in 2012 and summarize each comment in our request gathering of existing data to help subsequently renewed twice, in 2015 to OMB to approve this ICR. Before identify any potential risks to wildlife and 2018. including your address, phone number, and their habitats at proposed wind Title of Collection: Land-Based Wind email address, or other personal energy project sites. The developer then Energy Guidelines. identifying information in your proceeds through subsequent tiers, as OMB Control Number: 1018–0148. comment, you should be aware that appropriate, to collect information in Form Number: None. your entire comment—including your increasing detail until the level of risk Type of Review: Extension of a personal identifying information—may is adequately ascertained to inform the currently approved collection. be made publicly available at any time. developer’s decision on whether or not Respondents/Affected Public: While you can ask us in your comment to develop the site. Many projects may Developers and operators of wind to withhold your personal identifying not proceed beyond Tier 1 or 2, when energy facilities. information from public review, we developers become aware of potential Respondent’s Obligation: Voluntary. cannot guarantee that we will be able to barriers, including high risks to wildlife. Frequency of Collection: On occasion. do so. Developers would only have an interest Total Estimated Annual Nonhour Abstract: As wind energy production in adhering to the Guidelines for those Burden Cost: $36,870,000. Costs will increased, both developers and wildlife projects that proceed beyond Tier 1 or depend on the size and complexity of agencies recognized the need for a 2. issues associated with each project. system to evaluate and address the At each tier, wind energy developers These expenses may include, but are not potential negative impacts of wind and operators should retain limited to: Travel expenses for site energy projects on species of concern. documentation to provide to the visits, studies conducted, and meetings As a result, the Service worked with the Service. Such documentation may with the Service and other Federal and wind energy industry, conservation include copies of correspondence with State agencies; training in survey nongovernmental organizations, Federal the Service, results of pre- and post- methodologies; data management;

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special transportation, such as all- telemetry, or radar monitoring; and terrain vehicles or helicopters; carcass storage. equipment needed for acoustic,

Completion Annual Number of Total time per Total annual Requirement number of responses annual response burden respondents each responses (hours) hours

Tier 1 (Desktop Analysis): Reporting ...... 40 1 40 25 1,000 Recordkeeping ...... 1 40 Tier 2 (Site characterization): Reporting ...... 35 1 35 155 5,425 Recordkeeping ...... 3 105 Tier 3 (Pre-construction studies): Reporting ...... 30 1 30 3,100 93,000 Recordkeeping ...... 5 150 Tier 4 (Post-construction fatality monitoring and habitat studies): Reporting ...... 45 1 45 3,600 162,000 Recordkeeping ...... 5 225 Tier 5 (Other post-construction studies): Reporting ...... 10 1 10 2,100 21,000 Recordkeeping ...... 5 50

Totals ...... 160 ...... 160 ...... 282,995

An agency may not conduct or Document availability: The draft and comment on this draft recovery sponsor and a person is not required to recovery plan, along with any comments plan from local, State, and Federal respond to a collection of information and other materials that we receive, will agencies, and the public. unless it displays a currently valid OMB be available for public inspection at Recovery Planning control number. http://www.regulations.gov in Docket The authority for this action is the No. FWS–R3–ES–2019–0101. Section 4(f) of the Endangered Species Paperwork Reduction Act of 1995 (44 Submitting Comments: You may Act of 1973, as amended (Act; 16 U.S.C. U.S.C. 3501 et seq.). submit comments by one of the 1531 et seq.), requires the development Dated: December 17, 2020. following methods: of recovery plans for listed species, • Internet: http:// unless such a plan would not promote Madonna Baucum, www.regulations.gov. Search for and the conservation of a particular species. Information Collection Clearance Officer, U.S. submit comments on Docket No. FWS– Also pursuant to section 4(f) of the Act, Fish and Wildlife Service. R3–ES–2019–0101. a recovery plan must, to the maximum [FR Doc. 2020–28259 Filed 12–21–20; 8:45 am] • U.S. mail or hand-delivery: Public extent practicable, include (1) a BILLING CODE 4333–15–P Comments Processing, Attn: Docket No. description of site-specific management FWS–R3–ES–2019–0101; U.S. Fish and actions as may be necessary to achieve Wildlife Service Headquarters, MS: DEPARTMENT OF THE INTERIOR the plan’s goals for the conservation and JAO/1N; 5275 Leesburg Pike, Falls survival of the species; (2) objective, Fish and Wildlife Service Church, VA 22041–3803. measurable criteria that, when met, For more information, see Availability would support a determination under [Docket No. FWS–R3–ES–2019–0101; of Public Comments under section 4(a)(1) that the species should be FXES11130300000–190–FF03E00000] SUPPLEMENTARY INFORMATION. removed from the List of Endangered FOR FURTHER INFORMATION CONTACT: Endangered and Threatened Wildlife and Threatened Species; and (3) Karen Herrington, by phone at 573–234– and Plants; Draft Recovery Plan for the estimates of the time and costs required 2132, via email at karen_herrington@ Ozark Hellbender to carry out those measures needed to fws.gov, or via the Federal Relay Service achieve the plan’s goal and to achieve AGENCY: Fish and Wildlife Service, at 800–877–8339. intermediate steps toward that goal. Interior. SUPPLEMENTARY INFORMATION: We, the Species Background ACTION: Notice of availability and U.S. Fish and Wildlife Service (Service), request for public comment. announce the availability of the draft The Ozark hellbender is endemic to recovery plan for the endangered Ozark the White River drainage in northern SUMMARY: We, the U.S. Fish and hellbender (Cryptobranchus Arkansas and southern Missouri Wildlife Service, announce the alleganiensis bishopi) for public review (Johnson 2000), historically occurring in availability of the draft recovery plan for and comment. The Ozark hellbender is portions of the Spring, White, Black, the Ozark hellbender, a salamander a large, strictly aquatic salamander Eleven Point, and Current Rivers and species. We request review and found only in southern Missouri and some of their tributaries (Bryant Creek, comment on this draft recovery plan northern Arkansas. The draft recovery the North Fork White River, and Jacks from local, State, and Federal agencies, plan includes objective, measurable Fork) (LaClaire 1993). Currently, and the public. criteria and management actions as may populations of Ozark hellbenders are DATES: We must receive comments by be necessary for removal of the species known to occur in Bryant Creek, the January 21, 2021. from the Federal List of Endangered and North Fork White River, the Eleven ADDRESSES: Threatened Wildlife. We request review Point River, and the Current River, with

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some individuals possibly still present 1. There is a positive population trend INTERNATIONAL TRADE in the main stem of the White River, for a 15 year period.1 COMMISSION Spring River, and Jacks Fork (Briggler 2. There is evidence of successful [Investigation No. 337–TA–1145] 2013, pers. comm.; Irwin 2013, pers. recruitment to maintain a sustaining comm.). population, with recruitment defined as Certain Botulinum Toxin Products, The primary reason for Ozark attainment of sexual maturity by young. Processes for Manufacturing or Relating to Same and Certain Products hellbender population declines remains 3. Habitat quantity and quality are unclear. However, several potential Containing Same Commission Final sufficient to support all life stages. factors have been identified and include Determination Finding a Violation of degraded water quality, habitat loss 4. Within each watershed the number Section 337; Issuance of a Limited resulting from impoundments and and distribution of occupied habitat Exclusion Order and a Cease and sedimentation, disease, illegal and/or patches and abundance of individuals Desist Order; Termination of the scientific collection, and potential within these patches is such that (1) the Investigation increased predation from some native population is resilient to stochastic and AGENCY: U.S. International Trade and non-native species of stocked fish catastrophic events and (2) connectivity Commission. (Service 2011). Population declines and gene flow is sufficient to maintain have necessitated the use of captive genetic diversity and provide for natural ACTION: Notice. propagation efforts to ensure the long- re-establishment if a patch is extirpated. SUMMARY: Notice is hereby given that term survival of the species until threats 5. Causes of population declines have the U.S. International Trade are better understood and abated. been identified, and it is clear what Commission has found a violation of Under the Act, the Service added the actions are needed to address these section 337 in the above-captioned Ozark hellbender to the Federal List of threats. investigation. The Commission has Endangered and Threatened Wildlife as determined to issue a limited exclusion an endangered species on October 6, Delisting Criteria order (‘‘LEO’’) prohibiting the 2011 (76 FR 61956). This final rule took To delist the Ozark hellbender, the importation by respondents Daewoong effect on November 7, 2011. following criteria should be achieved for Pharmaceuticals Co., Ltd. (‘‘Daewoong’’) of Seoul, South Korea and Evolus, Inc. each of three Ozark hellbender Recovery Criteria (‘‘Evolus’’) of Irvine, California populations (the North Fork White The draft recovery criteria are (collectively, ‘‘Respondents’’) of certain River, Eleven Point River, and Current botulinum toxin products, processes for summarized below. For the recovery River): strategy, management actions, and manufacturing or relating to same and estimated time and costs associated 1. Downlisting criteria have been met. certain products containing same. The with recovery, refer to the Draft 2. Threats and causes of decline have Commission has also issued a cease and Recovery Plan for the Ozark hellbender been reduced or eliminated such that desist order (‘‘CDO’’) directed to respondent Evolus. The investigation is (see ADDRESSES for document delisting criterion 1 will continue to be availability). met into the foreseeable future. terminated. FOR FURTHER INFORMATION CONTACT: The ultimate recovery goal is to Availability of Public Comments Houda Morad, Office of the General remove the Ozark hellbender from the Counsel, U.S. International Trade Before including your address, phone Federal List of Endangered and Commission, 500 E Street SW, number, email address, or other Threatened Wildlife (‘‘delist’’) by Washington, DC 20436, telephone (202) ensuring the long-term viability of the personal identifying information in your 708–4716. Copies of non-confidential species in the wild. In the recovery comment, you should be aware that documents filed in connection with this plan, we define the following criteria for your entire comment—including your investigation may be viewed on the reclassification (‘‘downlisting’’ from personal identifying information—may Commission’s electronic docket (EDIS) endangered to threatened) and delisting be made publicly available at any time. at https://edis.usitc.gov. For help based on the best available information While you can ask us in your comment accessing EDIS, please email on the species. to withhold your personal identifying [email protected]. General Downlisting Criteria information from public review, we information concerning the Commission cannot guarantee that we will be able to may also be obtained by accessing its Because each of the three extant do so. internet server at https://www.usitc.gov. Ozark hellbender populations is The public record for this investigation Authority genetically unique, all three populations may be viewed on the Commission’s are necessary to maintain the The authority for this action is section electronic docket (EDIS) at https:// evolutionary potential of the species. 4(f) of the Endangered Species Act, 16 edis.usitc.gov. Hearing-impaired Given the small range of each U.S.C. 1533(f). persons are advised that information on population, the persistence of all three this matter can be obtained by populations is also necessary to guard Lori Nordstrom, contacting the Commission’s TDD against extinction from catastrophic Assistant Regional Director, Ecological terminal on (202) 205–1810. events such as extreme flooding, Services, Midwest Region. SUPPLEMENTARY INFORMATION: On March drought, and chemical spills. Therefore, [FR Doc. 2020–28172 Filed 12–21–20; 8:45 am] 6, 2019, the Commission instituted this to downlist the Ozark hellbender, the BILLING CODE 4333–15–P investigation under section 337 of the following criteria should be achieved for Tariff Act of 1930, as amended, 19 each of three Ozark hellbender 1 U.S.C. 1337 (‘‘section 337’’), based on a populations (the North Fork White Because the Ozark hellbender is a long-lived species, population trends take a longer amount of complaint filed by Medytox Inc. of River, Eleven Point River, and Current time to be realized. Thus, a longer period of time Seoul, South Korea; Allergan Limited of River): is needed to monitor population trends. Dublin, Ireland; and Allergan, Inc. of

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Irvine, California (collectively, On October 9, 2020, the parties, Issued: December 16, 2020. ‘‘Complainants’’). See 84 FR 8112–13 including the IA, filed written Lisa Barton, (Mar. 6, 2019). The complaint, as submissions in response to the WTR/ Secretary to the Commission. supplemented, alleges a violation of Remedy Notice, and on October 16, [FR Doc. 2020–28158 Filed 12–21–20; 8:45 am] section 337 based upon the importation 2020, the parties filed responses to each BILLING CODE 7020–02–P and sale in the United States of certain other’s submissions. In addition, on botulinum toxin products, processes for October 5–9, 2020, several non-parties manufacturing or relating to same and filed submissions on the proposed INTERNATIONAL TRADE certain products containing same by remedy and/or the public interest in COMMISSION reason of misappropriation of trade response to the WTR/Remedy Notice. secrets, the threat or effect of which is [Investigation Nos. 701–TA–649 and 731– Having examined the record of this TA–1523 (Final)] to destroy or substantially injure a investigation, including the FID, the RD, domestic industry in the United States. and the parties’ and non-parties’ Twist Ties From China; Scheduling of See id. The notice of investigation submissions, the Commission has the Final Phase of Countervailing Duty names Daewoong and Evolus as determined to affirm the FID in part and and Antidumping Duty Investigations respondents in this investigation. See reverse in part. Specifically, as AGENCY: United States International id. The Office of Unfair Import explained in the Commission Opinion Trade Commission. Investigations is also a party to the filed concurrently herewith, the investigation. See id. Commission has determined to affirm ACTION: Notice. On July 6, 2020, the Administrative with modification the FID’s findings Law Judge (‘‘ALJ’’) issued a final initial SUMMARY: The Commission hereby gives with respect to subject matter notice of the scheduling of the final determination (‘‘FID’’) finding a jurisdiction, standing, domestic violation of section 337 based on the ® phase of antidumping and industry as to BOTOX , and trade secret countervailing duty investigation Nos. importation and sale in the United existence and misappropriation as it States of Respondents’ botulinum 701–TA–649 and 731–TA–1523 (Final) relates to Medytox’s manufacturing pursuant to the Tariff Act of 1930 (‘‘the neurotoxin products by reason of the processes. The Commission has also misappropriation of trade secrets, the Act’’) to determine whether an industry determined to reverse the FID’s finding in the United States is materially threat or effect of which is to destroy or that a trade secret exists with respect to substantially injure an industry in the injured or threatened with material Medytox’s bacterial strain. All findings injury, or the establishment of an United States. See FID at 273. The ALJ in the FID that are not inconsistent with issued a recommended determination industry in the United States is the Commission’s determination are materially retarded, by reason of (‘‘RD’’) recommending that, if a affirmed. violation is found, the Commission imports of twist ties from China, issue: (1) An LEO barring entry of Accordingly, the Commission finds provided for in subheadings certain botulinum toxin products that that there is a violation of section 337. 8309.90.0000 and 5609.00.3000 of the are imported and/or sold by The Commission has determined that Harmonized Tariff Schedule of the respondents Daewoong and Evolus; and the appropriate remedy is an LEO United States, preliminarily determined (2) a CDO against Evolus. The RD also against Respondents’ botulinum toxin by the Department of Commerce recommends that the Commission products, and a CDO against Evolus, (‘‘Commerce’’) to be subsidized and sold impose a bond based on price barring Respondents’ unfair acts for a at less-than-fair-value. differential during the period of duration of 21 months. The Commission DATES: December 3, 2020. has also determined that the public Presidential review. FOR FURTHER INFORMATION CONTACT: interest factors enumerated in On July 28, 2020, the Commission Christopher W. Robinson ((202) 205– subsections 337(d)(1) and (f)(1) (19 issued a notice requesting statements on 2542), Office of Investigations, U.S. U.S.C. 1337(d)(1), (f)(1)) do not preclude the public interest. See 85 FR 46711 International Trade Commission, 500 E the issuance of the LEO and CDO. The (Aug. 3, 2020) (‘‘the PI Notice’’). On Street SW, Washington, DC 20436. Commission has further determined to August 17–18, 2020, several non-parties Hearing-impaired persons can obtain set a bond during the period of filed submissions in response to the PI information on this matter by contacting Presidential review in an amount of Notice. the Commission’s TDD terminal on 202– $441 per 100U vial of Respondents’ 205–1810. Persons with mobility On September 21, 2020, the accused products. Commission issued a notice impairments who will need special determining to review the FID in part. The Commission’s orders and opinion assistance in gaining access to the See 85 FR 60489–90 (Sept. 25, 2020) were delivered to the President and to Commission should contact the Office (‘‘the WTR/Remedy Notice’’). the United States Trade Representative of the Secretary at 202–205–2000. Specifically, the Commission on the day of their issuance. General information concerning the determined to review the FID’s findings The investigation is terminated. Commission may also be obtained by accessing its internet server (https:// with respect to subject matter The Commission’s vote on this www.usitc.gov). The public record for jurisdiction, standing, trade secret determination took place on December these investigations may be viewed on existence and misappropriation, and 16, 2020. domestic industry, including the the Commission’s electronic docket existence of such domestic industry as The authority for the Commission’s (EDIS) at https://edis.usitc.gov. well as any actual or threatened injury determination is contained in section SUPPLEMENTARY INFORMATION: thereto. See id. The Commission 337 of the Tariff Act of 1930, as Scope.—For purposes of these determined not to review the remainder amended (19 U.S.C. 1337), and in part investigations, Commerce has defined of the FID. See id. The Commission’s 210 of the Commission’s Rules of the subject merchandise as twist ties, notice also requested written Practice and Procedure (19 CFR part which are thin, bendable ties for closing submissions on remedy, the public 210). containers, such as bags, bundle items, interest, and bonding. See id. By order of the Commission. or identifying objects. A twist tie in

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most circumstances is comprised of one only. The written description of the provided that the application is made or more metal wires encased in a scope of the investigation is dispositive. no later than 21 days prior to the covering material, which allows the tie Background.—The final phase of hearing date specified in this notice. to retain its shape and bind against these investigations is being scheduled Authorized applicants must represent itself. However, it is possible to make a pursuant to sections 705(b) and 731(b) interested parties, as defined by 19 twist tie with plastic and no metal of the Tariff Act of 1930 (19 U.S.C. U.S.C. 1677(9), who are parties to the wires. The metal wire that is generally 1671d(b) and 1673d(b)), as a result of investigations. A party granted access to used in a twist tie is stainless or affirmative preliminary determinations BPI in the preliminary phase of the galvanized steel and typically measures by Commerce that certain benefits investigations need not reapply for such between the gauges of 19 (.0410″ which constitute subsidies within the access. A separate service list will be diameter) and 31 (.0132″) (American meaning of § 703 of the Act (19 U.S.C. maintained by the Secretary for those Standard Wire Gauge). A twist tie 1671b) are being provided to parties authorized to receive BPI under usually has a width between .075″ and manufacturers, producers, or exporters the APO. 1″ in the cross-machine direction (width in China of twist ties, and that such Staff report.—The prehearing staff of the tie—measurement perpendicular products are being sold in the United report in the final phase of these with the wire); a thickness between States at less than fair value within the investigations will be placed in the .015″ and .045″ over the wire; and a meaning of § 733 of the Act (19 U.S.C. nonpublic record on February 2, 2021, thickness between .002″ and .020″ in 1673b). The investigations were and a public version will be issued areas without wire. The scope includes requested in petitions filed on June 26, thereafter, pursuant to § 207.22 of the an all-plastic twist tie containing a 2020, by Bedford Industries Inc., Commission’s rules. plastic core as well as a plastic covering Worthington, Minnesota. Hearing.— The Commission will hold (the wing) over the core, just like paper For further information concerning a hearing in connection with the final and/or plastic in a metal tie. An all- the conduct of this phase of the phase of these investigations beginning plastic twist tie (without metal wire) investigations, hearing procedures, and at 9:30 a.m. on February 16, 2021. would be of the same measurements as rules of general application, consult the Information about the place and form of a twist tie containing one or more metal Commission’s Rules of Practice and the hearing, including about how to wires. Twist ties are commonly Procedure, part 201, subparts A and B participate in and/or view the hearing, available individually in pre-cut lengths (19 CFR part 201), and part 207, will be posted on the Commission’s (‘‘singles’’), wound in large spools to be subparts A and C (19 CFR part 207). website at https://www.usitc.gov/ Participation in the investigations and cut later by machine or hand, or in calendarpad/calendar.html. Interested public service list.—Persons, including perforated sheets of spooled or single parties should check the Commission’s industrial users of the subject website periodically for updates. twist ties that are later slit by machine merchandise and, if the merchandise is Requests to appear at the hearing should or by hand (‘‘gangs’’). sold at the retail level, representative be filed in writing with the Secretary to The covering material of a twist tie consumer organizations, wishing to the Commission on or before February may be paper (metallic or plain), or participate in the final phase of these 9, 2021. A nonparty who has testimony plastic, and can be dyed in a variety of investigations as parties must file an that may aid the Commission’s colors with or without printing. A twist entry of appearance with the Secretary deliberations may request permission to tie may have the same covering material to the Commission, as provided in present a short statement at the hearing. on both sides or one side of paper and § 201.11 of the Commission’s rules, no All parties and nonparties desiring to one side of plastic. When comprised of later than 21 days prior to the hearing appear at the hearing and make oral two sides of paper, the paper material is date specified in this notice. A party presentations should attend a bound together with an adhesive or that filed a notice of appearance during prehearing conference to be held at 9:30 plastic. A twist tie may also have a tag the preliminary phase of the a.m. on February 11, 2021. Oral or label attached to it or a pre-applied investigations need not file an testimony and written materials to be adhesive attached to it. additional notice of appearance during submitted at the public hearing are Excluded from the scope of the order this final phase. The Secretary will governed by sections 201.6(b)(2), are twist ties packaged with bags for sale maintain a public service list containing 201.13(f), and 207.24 of the together where the quantity of twist ties the names and addresses of all persons, Commission’s rules. Parties must submit does not exceed twice the number of or their representatives, who are parties any request to present a portion of their bags in each package. Also excluded are to the investigations. hearing testimony in camera no later twists ties that constitute part of the Please note the Secretary’s Office will than 7 business days prior to the date of packaging of the imported product, for accept only electronic filings during this the hearing. example, merchandise anchored/ time. Filings must be made through the Written submissions.—Each party secured to a backing with twist ties in Commission’s Electronic Document who is an interested party shall submit the retail package or a bag of bread that Information System (EDIS, https:// a prehearing brief to the Commission. is closed with a twist tie. edis.usitc.gov.) No in-person paper- Prehearing briefs must conform with the Twist ties are imported into the based filings or paper copies of any provisions of § 207.23 of the United States under Harmonized Tariff electronic filings will be accepted until Commission’s rules; the deadline for Schedule of the United States (HTSUS) further notice. filing is February 9, 2021. Parties may subheadings 8309.90.00 and 5609.00.30. Limited disclosure of business also file written testimony in connection Subject merchandise may also be proprietary information (BPI) under an with their presentation at the hearing, as imported under HTSUS subheadings administrative protective order (APO) provided in § 207.24 of the 3920.51.5000, 3923.90.0080, and BPI service list.—Pursuant to Commission’s rules, and posthearing 3926.90.9990, 4811.59.6000, § 207.7(a) of the Commission’s rules, the briefs, which must conform with the 4821.10.2000, 4821.10.4000, Secretary will make BPI gathered in the provisions of § 207.25 of the 4821.90.2000, 4821.90.4000, and final phase of these investigations Commission’s rules. The deadline for 4823.90.8600. These HTSUS available to authorized applicants under filing posthearing briefs is February 25, subheadings are provided for reference the APO issued in the investigations, 2021. In addition, any person who has

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not entered an appearance as a party to DEPARTMENT OF JUSTICE General and the Federal Trade the investigations may submit a written Commission disclosing changes in its statement of information pertinent to Antitrust Division membership. The notifications were the subject of the investigations, filed for the purpose of extending the Notice Pursuant to the National including statements of support or Act’s provisions limiting the recovery of Cooperative Research and Production antitrust plaintiffs to actual damages opposition to the petition, on or before Act of 1993—CHEDE–8 February 25, 2021. On March 16, 2021, under specified circumstances. the Commission will make available to Notice is hereby given that, on Specifically, Australian Council for parties all information on which they December 15, 2020, pursuant to Section Educational Research, Camberwell, have not had an opportunity to 6(a) of the National Cooperative AUSTRALIA; ClassEDU Inc., Raleigh, comment. Parties may submit final Research and Production Act of 1993, NC; GreenLight Credentials, Dallas, TX; comments on this information on or 15 U.S.C. 4301 et seq. (‘‘the Act’’), Magic Software Inc., New York, NY; Manabie International Pte Ltd, before March 18, 2021, but such final CHEDE–8 (‘‘CHEDE–8’’) has filed Singapore, SINGAPORE; Richland comments must not contain new factual written notifications simultaneously with the Attorney General and the School District No. 2, Columbia, SC; and information and must otherwise comply Federal Trade Commission disclosing Virtual Virginia, Floyd, VA, have been with § 207.30 of the Commission’s rules. changes in its membership. The added as parties to this venture. All written submissions must conform notifications were filed for the purpose Also, IBM, Cambridge, MA; Paradigm, with the provisions of § 201.8 of the of extending the Act’s provisions Inc., Virginia Beach, VA; Badgewell, Commission’s rules; any submissions limiting the recovery of antitrust Giza, EGYPT; VidGrid, St. Paul, MN; that contain BPI must also conform with plaintiffs to actual damages under and Unox Portal (Pragnya Technologies the requirements of §§ 201.6, 207.3, and specified circumstances. Specifically, Pty), Sydney, AUSTRALIA, have 207.7 of the Commission’s rules. The Caterpillar, Inc., Peoria, IL, has been withdrawn as parties to this venture. Commission’s Handbook on Filing added as a party to this venture. No other changes have been made in Procedures, available on the No other changes have been made in either the membership or planned Commission’s website at https:// either the membership or planned activity of the group research project. www.usitc.gov/documents/handbook_ activity of the group research project. Membership in this group research on_filing_procedures.pdf, elaborates Membership in this group research project remains open, and IMS Global upon the Commission’s procedures with project remains open, and CHEDE–8 intends to file additional written respect to filings. intends to file additional written notifications disclosing all changes in notifications disclosing all changes in membership. Additional written submissions to the membership. On April 7, 2000, IMS Global filed its Commission, including requests On December 4, 2019, CHEDE–8 filed original notification pursuant to Section pursuant to § 201.12 of the its original notification pursuant to 6(a) of the Act. The Department of Commission’s rules, shall not be Section 6(a) of the Act. The Department Justice published a notice in the Federal accepted unless good cause is shown for of Justice published a notice in the Register pursuant to Section 6(b) of the accepting such submissions, or unless Federal Register pursuant to Section Act on September 13, 2000 (65 FR the submission is pursuant to a specific 6(b) of the Act on December 30, 2019 55283). request by a Commissioner or (84 FR 71977). The last notification was filed with Commission staff. The last notification was filed with the Department on September 16, 2020. In accordance with §§ 201.16(c) and the Department on October 20, 2020. A A notice was published in the Federal notice was published in the Federal 207.3 of the Commission’s rules, each Register pursuant to Section 6(b) of the Register pursuant to Section 6(b) of the document filed by a party to the Act on October 15, 2020 (85 FR 65426). Act on November 19, 2020 (85 FR investigations must be served on all 73751). Suzanne Morris, other parties to the investigations (as Chief, Premerger and Division Statistics, identified by either the public or BPI Suzanne Morris, Antitrust Division. service list), and a certificate of service Chief, Premerger and Division Statistics, [FR Doc. 2020–28138 Filed 12–21–20; 8:45 am] Antitrust Division. must be timely filed. The Secretary will BILLING CODE 4410–11–P not accept a document for filing without [FR Doc. 2020–28141 Filed 12–21–20; 8:45 am] a certificate of service. BILLING CODE 4410–11–P Authority: These investigations are being DEPARTMENT OF JUSTICE conducted under authority of title VII of the DEPARTMENT OF JUSTICE Drug Enforcement Administration Tariff Act of 1930; this notice is published pursuant to § 207.21 of the Commission’s Antitrust Division [Docket No. DEA–758] rules. Notice Pursuant to the National Importer of Controlled Substances By order of the Commission. Cooperative Research and Production Application: Fresenius Kabi USA, LLC Issued: December 16, 2020. Act of 1993—IMS Global Learning Lisa Barton, Consortium, Inc. AGENCY: Drug Enforcement Secretary to the Commission. Administration, Justice. Notice is hereby given that, on ACTION: Notice of application. [FR Doc. 2020–28140 Filed 12–21–20; 8:45 am] December 3, 2020, pursuant to Section BILLING CODE 7020–02–P 6(a) of the National Cooperative SUMMARY: Fresenius Kabi USA, LLC has Research and Production Act of 1993, applied to be registered as an importer 15 U.S.C. 4301 et seq. (‘‘the Act’’), IMS of basic class(es) of controlled Global Learning Consortium, Inc. (‘‘IMS substance(s). Refer to SUPPLEMENTAL Global’’) has filed written notifications INFORMATION listed below for further simultaneously with the Attorney drug information.

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DATES: Registered bulk manufacturers of DEPARTMENT OF JUSTICE is authorized under 21 U.S.C. 952(a)(2). the affected basic class(es), and Authorization will not extend to the applicants therefore, may file written Drug Enforcement Administration import of Food and Drug comments on or objections to the [Docket No. DEA–740] Administration-approved or non- issuance of the proposed registration on approved finished dosage forms for or before January 21, 2021. Such Importer of Controlled Substances commercial sale. persons may also file a written request Application: Yourway Transport William T. McDermott, for a hearing on the application on or AGENCY: Drug Enforcement Assistant Administrator. before January 21, 2021. Administration, Justice. [FR Doc. 2020–28179 Filed 12–21–20; 8:45 am] ADDRESSES: Written comments should ACTION: Notice of application. BILLING CODE P be sent to: Drug Enforcement SUMMARY: Administration, Attention: DEA Federal Yourway Transport has applied to be registered as an importer Register Representative/DPW, 8701 DEPARTMENT OF JUSTICE of basic class(es) of controlled Morrissette Drive, Springfield, Virginia substance(s). Refer to SUPPLEMENTARY Drug Enforcement Administration 22152. All requests for a hearing must INFORMATION listed below for further be sent to: Drug Enforcement drug information. [Docket No. DEA–757] Administration, Attn: Administrator, DATES: Registered bulk manufacturers of 8701 Morrissette Drive, Springfield, Importer of Controlled Substances the affected basic class(es), and Virginia 22152. All requests for a Application: Organic Standards applicants therefore, may file written Solutions International, LLC hearing should also be sent to: (1) Drug comments on or objections to the Enforcement Administration, Attn: issuance of the proposed registration on AGENCY: Drug Enforcement Hearing Clerk/OALJ, 8701 Morrissette or before January 21, 2021. Such Administration, Justice. Drive, Springfield, Virginia 22152; and persons may also file a written request ACTION: Notice of application. (2) Drug Enforcement Administration, for a hearing on the application on or Attn: DEA Federal Register before January 21, 2021. SUMMARY: Organic Standards Solutions Representative/DPW, 8701 Morrissette ADDRESSES: Written comments should International, LLC has applied to be Drive, Springfield, Virginia 22152. be sent to: Drug Enforcement registered as an importer of basic Administration, Attention: DEA Federal class(es) of controlled substance(s). SUPPLEMENTARY INFORMATION: In Refer to SUPPLEMENTAL INFORMATION accordance with 21 CFR 1301.34(a), this Register Representative/DPW, 8701 Morrissette Drive, Springfield, Virginia listed below for further drug is notice that on August 7, 2020, information. Fresenius Kabi USA, LLC, 3159 Stanley 22152. All requests for a hearing must Road, Grand Island, New York 14072– be sent to: Drug Enforcement DATES: Registered bulk manufacturers of Administration, Attn: Administrator, 2028, applied to be registered as an the affected basic class(es), and 8701 Morrissette Drive, Springfield, applicants therefore, may file written importer of the following basic class(es) Virginia 22152. All requests for a comments on or objections to the of controlled substance(s): hearing should also be sent to: (1) Drug issuance of the proposed registration on Enforcement Administration, Attn: or before January 21, 2021. Such Drug Controlled substance code Schedule Hearing Clerk/OALJ, 8701 Morrissette persons may also file a written request Drive, Springfield, Virginia 22152; and for a hearing on the application on or Remifentanil ...... 9739 II (2) Drug Enforcement Administration, before January 21, 2021. Attn: DEA Federal Register ADDRESSES: Written comments should The company plans to import the Representative/DPW, 8701 Morrissette be sent to: Drug Enforcement Drive, Springfield, Virginia 22152. listed controlled substances for bulk Administration, Attention: DEA Federal manufacture. No other activity for this SUPPLEMENTARY INFORMATION: In Register Representative/DPW, 8701 drug code is authorized for this accordance with 21 CFR 1301.34(a), this Morrissette Drive, Springfield, Virginia registration. is notice that on July 24, 2020, Yourway 22152. All requests for a hearing must Transport, 6681 Snowdrift Road, be sent to: Drug Enforcement Approval of permit applications will Allentown, Pennsylvania 18106, Administration, Attn: Administrator, occur only when the registrant’s applied to be registered as an importer 8701 Morrissette Drive, Springfield, business activity is consistent with what of the following basic class(es) of Virginia 22152. All requests for a is authorized under 21 U.S.C. 952(a)(2). controlled substance(s): hearing should also be sent to: (1) Drug Authorization will not extend to the Enforcement Administration, Attn: import of Food and Drug Controlled substance Drug Schedule Hearing Clerk/OALJ, 8701 Morrissette Administration-approved or non- code Drive, Springfield, Virginia 22152; and approved finished dosage forms for Marihuana ...... 7360 I (2) Drug Enforcement Administration, commercial sale. Attn: DEA Federal Register Representative/DPW, 8701 Morrissette William T. McDermott, The company plans to import finished dosage unit products containing Drive, Springfield, Virginia 22152. Assistant Administrator. Marihuana for clinical trial studies. The SUPPLEMENTARY INFORMATION: In [FR Doc. 2020–28177 Filed 12–21–20; 8:45 am] Marihuana compound is listed under accordance with 21 CFR 1301.34(a), this BILLING CODE 4410–09–P drug code 7360. No other activity for is notice that on October 30, 2020, this drug code is authorized for this Organic Standards Solutions registration. International, LLC, 7290 Investment Approval of permit applications will Drive, Unit B, North Charleston, South occur only when the registrant’s Carolina 29418–8305, applied to be business activity is consistent with what registered as an importer of the

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following basic class(es) of controlled estimated public burden or associated 5. An estimate of the total number of substance(s): response time, have suggestions, need a respondents and the amount of time copy of the proposed information estimated for an average respondent to Controlled substance Drug Schedule collection instrument with instructions, respond: An estimated 20 respondents code or desire any additional information, will utilize the form, and it will take Marihuana Extract ...... 7350 I please contact Nicole Timmons either each respondent approximately 30 Marihuana ...... 7360 I by mail at CG–3, 10th Floor, minutes to complete the form. Tetrahydrocannabinols ... 7370 I Washington, DC 20530–0001, by email 6. An estimate of the total public at [email protected], or by burden (in hours) associated with the The company plans to import the telephone at 202–236–2646. collection: The estimated annual public above-listed controlled substances to SUPPLEMENTARY INFORMATION: Written burden associated with this collection is produce analytical reference standards comments and suggestions from the 10 hours, which is equal to (20 (total # for distribution to its customers. Drug public and affected agencies concerning of annual responses) * .5 (30mins). codes 7350 (Marihuana Extract) and the proposed collection of information If additional information is required 7360 (Marihuana) will be used for the are encouraged. Your comments should contact: Melody Braswell, Department manufacture of cannabidiol only. In address one or more of the following Clearance Officer, United States reference to drug code 7370 four points: Department of Justice, Justice (Tetrahydrocannabinols), the company —Evaluate whether the proposed Management Division, Policy and plans to import the synthetic version of collection of information is necessary Planning Staff, Two Constitution this controlled substance to produce for the proper performance of the Square, 145 N Street NE, 3E.405A, analytical reference standards for functions of the agency, including Washington, DC 20530. distribution to its customers. No other whether the information will have Dated: December 17, 2020. activity for these drug codes is practical utility; Melody Braswell, authorized for this registration. —Evaluate the accuracy of the agency’s Department Clearance Officer for PRA, U.S. Approval of permit applications will estimate of the burden of the Department of Justice. occur only when the registrant’s proposed collection of information, [FR Doc. 2020–28191 Filed 12–21–20; 8:45 am] business activity is consistent with what including the validity of the BILLING CODE 4410–04–P is authorized under 21 U.S.C. 952(a)(2). methodology and assumptions used; Authorization will not extend to the —Evaluate whether and if so how the import of Food and Drug quality, utility, and clarity of the DEPARTMENT OF LABOR Administration-approved or non- information to be collected can be approved finished dosage forms for enhanced; and Employment and Training commercial sale. —Minimize the burden of the collection Administration of information on those who are to William T. McDermott, respond, including through the use of Notice of Determinations Regarding Assistant Administrator. appropriate automated, electronic, Eligibility To Apply for Trade [FR Doc. 2020–28178 Filed 12–21–20; 8:45 am] mechanical, or other technological Adjustment Assistance BILLING CODE P collection techniques or other forms In accordance with the Section 223 of information technology, e.g., (19 U.S.C.2273) of the Trade Act of 1974 permitting electronic submission of (19 U.S.C.2271, et seq.) (‘‘Act’’), as DEPARTMENT OF JUSTICE responses. amended, the Department of Labor U.S. Marshals Service Overview of This Information herein presents summaries of [OMB Number NEW] Collection determinations regarding eligibility to 1. Type of Information Collection apply for trade adjustment assistance Agency Information Collection (check justification or form 83): New under Chapter 2 of the Act (‘‘TAA’’) for Activities; Proposed eCollection collection. workers by (TA–W) number issued eComments Requested; Proposed 2. The Title of the Form/Collection: during the period of November 1, 2020 Collection; Comments Requested: Form USM–649, Vulnerability through November 30, 2020. (This Form USM–649, Vulnerability Assessment Request. Notice primarily follows the language of Assessment Request 3. The agency form number, if any, the Trade Act. In some places however, and the applicable component of the changes such as the inclusion of AGENCY: U.S. Marshals Service, Department sponsoring the collection: subheadings, a reorganization of Department of Justice. Form number (if applicable): Form language, or ‘‘and,’’ ‘‘or,’’ or other words ACTION: 60-day notice. USM–649. are added for clarification.) Component: U.S. Marshals Service, SUMMARY: The Department of Justice Section 222(a)—Workers of a Primary U.S. Department of Justice. (DOJ), U.S. Marshals Service (USMS), Firm 4. Affected public who will be asked will submit the following information or required to respond, as well as a brief In order for an affirmative collection request to the Office of abstract: determination to be made for workers of Management and Budget (OMB) for Primary: State, local, and tribal a primary firm and a certification issued review and approval in accordance with organizations. regarding eligibility to apply for TAA, the Paperwork Reduction Act of 1995. Other (if applicable): [None]. the group eligibility requirements under DATES: Comments are encouraged and Abstract: This form should be Section 222(a) of the Act (19 U.S.C. will be accepted for 60 days until completed by state, local and tribal 2272(a)) must be met, as follows: February 22, 2021. government agencies to request a (1) The first criterion (set forth in FOR FURTHER INFORMATION CONTACT: If vulnerability assessment of a Section 222(a)(1) of the Act, 19 U.S.C. you have additional comments, government facility by the United States 2272(a)(1)) is that a significant number particularly with respect to the Marshals Service. or proportion of the workers in such

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workers’ firm (or ‘‘such firm’’) have produced or services which are 2272(e))must be met, by following become totally or partially separated, or supplied by such firm; criteria (1), (2), and (3) as follows: are threatened to become totally or AND (1) The workers’ firm is publicly partially separated; (ii) the shift described in clause (i)(I) identified by name by the International AND (2(A) or 2(B) below) or the acquisition of articles or services Trade Commission as a member of a (2) The second criterion (set forth in described in clause (i)(II) contributed domestic industry in an investigation Section 222(a)(2) of the Act, 19 U.S.C. importantly to such workers’ separation resulting in— 2272(a)(2)) may be satisfied by either (A) or threat of separation. (A) an affirmative determination of the Increased Imports Path, or (B) the Section 222(b)—Adversely Affected serious injury or threat thereof under Shift in Production or Services to a Secondary Workers section 202(b)(1) of the Act (19 U.S.C. Foreign Country Path/Acquisition of 2252(b)(1)); OR In order for an affirmative Articles or Services from a Foreign (B) an affirmative determination of Country Path, as follows: determination to be made for adversely affected secondary workers of a firm and market disruption or threat thereof (A) Increased Imports Path a certification issued regarding under section 421(b)(1) of the Act (19 U.S.C. 2436(b)(1)); OR (i) the sales or production, or both, of eligibility to apply for TAA, the group such firm, have decreased absolutely; eligibility requirements of Section (C) an affirmative final determination AND (ii and iii below) 222(b) of the Act (19 U.S.C. 2272(b)) of material injury or threat thereof under (ii) (I) imports of articles or services must be met, as follows: section 705(b)(1)(A) or 735(b)(1)(A) of like or directly competitive with articles (1) A significant number or proportion the Tariff Act of 1930 (19 U.S.C. produced or services supplied by such of the workers in the workers’ firm or 1671d(b)(1)(A) and 1673d(b)(1)(A)); firm have increased; OR an appropriate subdivision of the firm AND (II)(aa) imports of articles like or have become totally or partially (2) the petition is filed during the 1- directly competitive with articles into separated, or are threatened to become year period beginning on the date on which one or more component parts totally or partially separated; which— produced by such firm are directly AND (A) a summary of the report submitted incorporated, have increased; OR (2) the workers’ firm is a supplier or to the President by the International (II)(bb) imports of articles like or downstream producer to a firm that Trade Commission under section directly competitive with articles which employed a group of workers who 202(f)(1) of the Trade Act (19 U.S.C. are produced directly using the services received a certification of eligibility 2252(f)(1)) with respect to the supplied by such firm, have increased; under Section 222(a) of the Act (19 affirmative determination described in OR U.S.C. 2272(a)), and such supply or paragraph (1)(A) is published in the (III) imports of articles directly production is related to the article or Federal Register under section 202(f)(3) incorporating one or more component service that was the basis for such (19 U.S.C. 2252(f)(3)); OR parts produced outside the United certification (as defined in subsection (B) notice of an affirmative States that are like or directly 222(c)(3) and (4) of the Act (19 U.S.C. determination described in competitive with imports of articles 2272(c)(3) and (4)); subparagraph (B) or (C) of paragraph (1) incorporating one or more component AND is published in the Federal Register; parts produced by such firm have (3) either— AND (A) the workers’ firm is a supplier and increased; (3) the workers have become totally or AND the component parts it supplied to the (iii) the increase in imports described firm described in paragraph (2) partially separated from the workers’ in clause (ii) contributed importantly to accounted for at least 20 percent of the firm within— such workers’ separation or threat of production or sales of the workers’ firm; (A) the 1-year period described in separation and to the decline in the OR paragraph (2); OR sales or production of such firm; OR (B) a loss of business by the workers’ (B) notwithstanding section 223(b) of firm with the firm described in the Act (19 U.S.C. 2273(b)), the 1-year (B) Shift in Production or Services to a paragraph (2) contributed importantly to period preceding the 1-year period Foreign Country Path or Acquisition of the workers’ separation or threat of described in paragraph (2). Articles or Services From a Foreign separation determined under paragraph Country Path Affirmative Determinations for Trade (1). Adjustment Assistance (i) (I) there has been a shift by such workers’ firm to a foreign country in the Section 222(e)—Firms identified by the The following certifications have been production of articles or the supply of International Trade Commission issued. The date following the company services like or directly competitive In order for an affirmative name and location of each with articles which are produced or determination to be made for adversely determination references the impact services which are supplied by such affected workers in firms identified by date for all workers of such firm; OR the International Trade Commission and determination. (II) such workers’ firm has acquired a certification issued regarding The following certifications have been from a foreign country articles or eligibility to apply for TAA, the group issued. The requirements of Section services that are like or directly eligibility requirements of Section 222(a)(2)(A) (Increased Imports Path) of competitive with articles which are 222(e) of the Act (19 U.S.C. the Trade Act have been met.

TA–W No. Subject firm Location Impact date

95,438 ...... North Pacific Canners & Packers Inc., NORPAC Food Inc...... Stayton, OR ...... December 2, 2018. 95,438A ...... North Pacific Canners & Packers Inc., NORPAC Food Inc., Brooks Plant Salem, OR ...... December 2, 2018. 95,438B ...... North Pacific Canners & Packers Inc., NORPAC Food Inc., Repack Cen- Salem, OR ...... December 2, 2018. ter.

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TA–W No. Subject firm Location Impact date

95,438C ...... North Pacific Canners & Packers Inc., NORPAC Food Inc., Corporate Salem, OR ...... December 2, 2018. Office. 95,438D ...... North Pacific Canners & Packers Inc., NORPAC Food Inc., Truck Stop .. Salem, OR ...... December 2, 2018. 95,538 ...... TMK IPSCO, IPSCO Tubular Inc., Temps Plus Staffing, Personnel Blytheville, AR ...... January 6, 2019. Placements LLC. 95,587 ...... YS Industries LLC, Anaya’s Cutting, Anaya Brothers Cutting, AppleOne Vernon, CA ...... January 21, 2019. Employment Services, etc. 95,636 ...... L.A. Darling Company, Metal Division, The Marmon Group, People Paragould, AR ...... January 31, 2019. Source. 95,643 ...... MAHLE Engine Components USA, Inc., MAHLE Industries Inc., Express Russellville, AR ...... February 3, 2019. Personnel Services. 95,653 ...... Blount International, Inc., Express Employment, Aerotek ...... Portland, OR ...... February 5, 2019. 95,680 ...... Harte Hanks Response Management/Austin Inc., Harte Hanks, Beacon Austin, TX ...... February 11, 2019. Hill, Randstad, KeyStaff, ChaseSource, PeopleShare, etc. 95,689 ...... Harte Hanks Response Management/Austin Inc., Harte Hanks, Beacon Texarkana, TX ...... February 12, 2019. Hill, Randstad, KeyStaff, ChaseSource, PeopleShare, etc. 95,988 ...... Team Industries, Team Industries, Inc., Manpower ...... Andrews, NC ...... June 12, 2019. 95,993 ...... Beaver Falls Tubular Product LLC, Alliance Tubular Holdings LLC ...... Beaver Falls, PA ...... June 16, 2019. 96,135 ...... Oregon Metallurgical Corporation, Allegheny Technologies, ATI Specialty Albany, OR ...... August 12, 2019. Alloys and Components, etc. 96,169 ...... Premier Processing LLC, Cadence Aerospace, Arnold Group, Summit Wichita, KS ...... August 31, 2019. Employment, Apprentice Personnel.

The following certifications have been Services to a Foreign Country Path or a Foreign Country Path) of the Trade Act issued. The requirements of Section Acquisition of Articles or Services from have been met. 222(a)(2)(B) (Shift in Production or

TA–W No. Subject firm Location Impact date

95,492 ...... Nexteer Automotive, North America Division, Arco Staffing, Advantage Saginaw, MI ...... December 17, 2018. Technical, Aerotek, etc. 95,554 ...... AvMed Inc., Claims Processing, SantaFe Healthcare, Career Mover & Gainesville, FL ...... January 10, 2019. Shaper, Aerotek, etc. 95,581 ...... BCBSM, Inc., Blue Cross Blue Shield of Minnesota, etc ...... Virginia, MN ...... January 21, 2019. 95,584 ...... NORMA Michigan Inc., NORMA Pennsylvania, Qualified Staffing, Craig Auburn Hills, MI ...... January 21, 2019. Assembly, Impact Staffing. 95,674 ...... Baptist Healthcare System Inc., Baptist Health Louisville, Medical Cod- Louisville, KY ...... January 27, 2019. ing Unit. 95,675 ...... Innio Waukesha Gas Engines Inc ...... Waukesha, WI ...... May 11, 2020. 95,906 ...... BFGoodrich Tire Manufacturing (BFG4), Michelin North America, Manu- Woodburn, IN ...... April 30, 2019. facturing, Capstone Logistics, Newbold Services. 95,967 ...... Manchester Tank & Equipment Company, Forge Industrial Staffing Elkhart, IN ...... June 5, 2019. 95,977 ...... MSSC US Inc., Mitsubishi Steel Manufacturing, Luttrell, Staff Easy, Wise Hopkinsville, KY ...... June 9, 2019. Staffing. 96,009 ...... PCC Structurals, Inc., Precision Castparts Corp., Aerotek Staffing and Portland, OR ...... June 22, 2019. Recruiting, etc. 96,010 ...... PCC Structurals, Inc., Precision Castparts Corp., Aerotek Staffing and Clackamas, OR ...... June 22, 2019. Recruiting, etc. 96,047 ...... Bates Rubber LLC ...... Lobelville, TN ...... July 8, 2019. 96,059 ...... Arauco North America, Inc., Duraflake Facility, Arauco Canada, Albany, OR ...... July 15, 2019. Selectemp Employment Services, etc. 96,059A ...... Arauco North America, Inc., Albany Treating and Lamination Facility, Albany, OR ...... July 15, 2019. Arauco Canada Limited, etc. 96,060 ...... Dal-Title Corporation, Mohawk Industries, Aerotek, Carlton Staffing, Dallas, TX ...... July 15, 2019. Cella, The BOSS Group, etc. 96,060A ...... Dal-Title Corporation, Mohawk Industries, Taos Staffing, Sterling Per- Sunnyvale, TX ...... July 15, 2019. sonnel, Onin Staffing, etc. 96,060B ...... Dal-Title Corporation, Mohawk Industries ...... Mesquite, TX ...... July 15, 2019. 96,060C ...... Dal-Title Corporation, Pellicano Drive facility, Mohawk Industries, Trillium El Paso, TX ...... July 15, 2019. 96,060D ...... Dal-Title Corporation, Railroad Drive facility, Mohawk Industries, El Paso, TX ...... July 15, 2019. TruTemps Staffing Group, etc. 96,060E ...... Dal-Title Corporation, Mohawk Industries, Integrity Staffing Solutions, Muskogee, OK ...... July 15, 2019. Premier USA Staffing, etc. 96,060F ...... Dal-Title Corporation, Mohawk Industries ...... Oklahoma City, OK ...... July 15, 2019. 96,084 ...... Vibracoustic North America LP, Peoplelink, Leaders Staffing, Elwood Ligonier, IN ...... July 22, 2019. Staffing. 96,085 ...... Gitman and Company/IAG, Tom James Company ...... Ashland, PA ...... July 23, 2019. 96,085A ...... Gitman and Company/IAG, Tom James Company ...... New York, NY ...... July 23, 2019. 96,087 ...... IQVIA Inc., IQVIA Holdings, Chief Information Office, End User Digital Overland Park, KS ...... July 22, 2019. Experience Unit. 96,096 ...... Keihin IPT Manufacturing, LLC, Keihin North America, Inc., First Call Greenfield, IN ...... July 24, 2019. Staffing.

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TA–W No. Subject firm Location Impact date

96,101 ...... Simmons Pet Food, Inc., Accu Staffing Services ...... Pennsauken, NJ ...... July 27, 2019. 96,104 ...... Titan Wheel Corporation of Virginia, Titan International Inc., Luttrell Saltville, VA ...... July 26, 2020. Staffing Group. 96,118 ...... Johnson Controls, Inc., Building Technologies & Solutions Division, Marinette, WI ...... August 2, 2019. Johnson Controls, PLC. 96,119 ...... SLASHSUPPORT Inc., CSS Corporation Technologies (Mauritius) Lim- Draper, UT ...... August 4, 2019. ited, etc. 96,128 ...... Southwick LLC, Southwick Apparel, Golden Fleece Manufacturing/ Haverhill, MA ...... August 6, 2019. Brooks Brothers, etc. 96,143 ...... Nokia of America Corporation, SAC Wireless ...... Naperville, IL ...... October 24, 2020. 96,143A ...... Volt, Nokia of America Corporation ...... Naperville, IL ...... August 17, 2019. 96,148 ...... SRG Global, Human Resources Department, SRG Global, Inc ...... Ripley, TN ...... August 18, 2019. 96,148A ...... SRG Global, Controllers/Accounting Department, SRG Global, Inc ...... Ripley, TN ...... August 18, 2019. 96,148B ...... SRG Global, Human Resources Department, SRG Global, Inc ...... Newbern, TN ...... August 18, 2019. 96,148C ...... SRG Global, Controllers/Accounting Department, SRG Global, Inc ...... Newbern, TN ...... August 18, 2019. 96,153 ...... Therm-O-Disc, Inc., Emerson Electric Co., Staffing Partners, Mansfield, OH ...... August 20, 2019. Temp2Higher, Time Staffing, etc. 96,154 ...... FlSmidth, Inc., Staff Pro Staffing Agency, Elwood Staffing, Randstad Inc Johnson City, TN ...... August 21, 2019. 96,160 ...... Riviera Travel LLC, Riviera Tours LTD ...... Fairfield, CT ...... August 26, 2019. 96,163 ...... Celeros Flow Technology, Advantage Technical Resourcing, SPX FLOW McKean, PA ...... August 26, 2019. US, LLC. 96,164 ...... CTS Electronic Components, Inc., CTS Corporation, Ceramics, Re- Albuquerque, NM ...... August 26, 2019. source MFG, VIP Staffing, BESTstaff, etc. 96,168 ...... Morgan Advanced Ceramics Inc., Morganite Industries Inc ...... Latrobe, PA ...... August 31, 2019. 96,170 ...... Streater LLC, Marmon Holdings, Express Services, Inc ...... Albert Lea, MN ...... August 31, 2019. 96,172 ...... Wieland Copper Products, LLC, AtWork Personnel ...... Pine Hall, NC ...... August 31, 2019. 96,173 ...... Respironics Novametrics LLC, Respironics Inc., Randstad ...... Wallingford, CT ...... October 19, 2020. 96,174 ...... Schweitzer-Mauduit International, SWM Poland Sp.Zo.O ...... Spotswood, NJ ...... September 1, 2019. 96,177 ...... Supreme Steel, Supreme Group ...... Portland, OR ...... September 2, 2019. 96,183 ...... W&D North America, W & D Gmbh, Barry Wehmiller Design Group, Duncansville, PA ...... September 9, 2019. Ruggieri Enterprise LLC. 96,184 ...... EmblemHealth, LLC, Claims Processing Administration ...... New York, NY ...... September 10, 2019. 96,184A ...... EmblemHealth, LLC, Claims Processing Administration ...... Albany, NY ...... September 10, 2019. 96,185 ...... EmblemHealth, LLC, Claims Processing Administration ...... Melville, NY ...... September 10, 2019. 96,187 ...... Korn Ferry (US), Logicalis, Larko Group ...... Chicago, IL ...... September 10, 2019. 96,188 ...... Nexans, Nexans Energy USA ...... Chester, NY ...... September 11, 2019. 96,188A ...... Nexans, Nexans Energy USA ...... Middletown, NY ...... September 11, 2019. 96,194 ...... Carl Zeiss Meditec, Inc., Carl Zeiss Meditec AG, Randstad, Briand Exec- Dublin, CA ...... September 15, 2019. utive Search, etc. 96,555 ...... Federal-Mogul Piston Rings LLC, Federal-Mogul Powertrain, Tenneco Sparta, MI ...... October 9, 2019. Powertrain. 96,558 ...... FreightCar Alabama, LLC, a subsidiary of FreightCar America, Inc ...... Cherokee, AL ...... October 15, 2019. 96,569 ...... Telsmith Inc., a division of ASTEC Industries Inc ...... Mequon, WI ...... October 15, 2019. 96,572 ...... Metro Decor LLC ...... Warren, OH ...... October 23, 2019. 96,573 ...... Tenneco Inc., Pistons Business Unit Federal Mogul Powertrain LLC ...... South Bend, IN ...... October 26, 2019. 96,574 ...... Phillips-Medisize ...... Eau Claire, WI ...... October 27, 2019. 96,577 ...... Metaldyne BSM LLC, AAM Fremont Manufacturing Facility, Driveline Di- Fremont, IN ...... October 27, 2019. vision. 96,582 ...... Aquafine Corporation ...... Valencia, CA ...... October 29, 2019. 96,583 ...... Dentsply Sirona, Lab/Prosthetics Dentsply Prosthetics US LLC ...... York, PA ...... November 2, 2019. 96,586 ...... Emerson Electric Company, Machine Automation Solutions ...... Charlottesville, VA ...... October 30, 2019. 96,589 ...... Pall Filter Specialists, Inc ...... Grand Island, NE ...... November 2, 2019.

The following certifications have been are certified eligible to apply for TAA) issued. The requirements of Section of the Trade Act have been met. 222(b) (supplier to a firm whose workers

TA–W No. Subject firm Location Impact date

96,003 ...... thyssenKrupp Materials, LLC, thyssenKrupp Materials NA, Inc ...... Hutchinson, KS ...... June 18, 2019. 96,043 ...... GKN Aerospace Precision Machining, Inc., GKN Aerospace ...... Wellington, KS ...... July 7, 2019. 96,078 ...... Cadence Aerospace, Giddens Industries Division, Technipower, JSG Everett, WA ...... July 14, 2019. Agency, Terra Staffing, etc. 96,078A ...... Precision Machine Works, Inc., Cadence Aerospace, Archbright, Insight Tacoma, WA ...... July 14, 2019. Global, etc. 96,134 ...... Trulife, Inc., Express Employment Professionals ...... Bellingham, WA ...... August 8, 2019. 96,145 ...... TECT Aerospace Wellington, Inc., TAD GPS, Summit Employment Pro- Wellington, KS ...... August 17, 2019. fessionals, The Arnold Group, etc. 96,145A ...... TECT Hypervelocity, Inc., Summit Employment Professionals, The Ar- Park City, KS ...... August 17, 2019. nold Group, etc. 96,145B ...... TECT Aerospace, LLC ...... Wichita, KS ...... August 17, 2019.

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TA–W No. Subject firm Location Impact date

96,167 ...... Aero-Tech Engineering, Inc ...... Maize, KS ...... August 31, 2019.

The following certifications have been 222(b) (downstream producer to a firm apply for TAA) of the Trade Act have issued. The requirements of Section whose workers are certified eligible to been met.

TA–W No. Subject firm Location Impact date

96,141 ...... Boeing Distribution Services, Inc., The Boeing Company, Adecco, Miami, FL ...... August 14, 2019. Aerotek, Affinity Resources, etc. 96,141A ...... Boeing Distribution Services, Inc., The Boeing Company, Aerotek ...... Chandler, AZ ...... August 14, 2019. 96,141B ...... Boeing Distribution Services, Inc., The Boeing Company ...... Carson, CA ...... August 14, 2019. 96,141C ...... Boeing Distribution Services, Inc., The Boeing Company, Aerotek ...... Enfield, CT ...... August 14, 2019. 96,141D ...... Boeing Distribution Services, Inc., The Boeing Company ...... Wichita, KS ...... August 14, 2019. 96,141E ...... Boeing Distribution Services, Inc., The Boeing Company, Aerotek, Rob- OaˆÖTM Fallon, MO ...... August 14, 2019. ert Half, Randstad. 96,141F ...... Boeing Distribution Services, Inc., The Boeing Company ...... Parsippany, NJ ...... August 14, 2019. 96,141G ...... Boeing Distribution Services, Inc., The Boeing Company, Aerotek ...... Cornwall, NY ...... August 14, 2019. 96,141H ...... Boeing Distribution Services, Inc., The Boeing Company ...... Westbury, NY ...... August 14, 2019. 96,141I ...... Boeing Distribution Services, Inc., The Boeing Company, Adecco ...... Greensboro, NC ...... August 14, 2019. 96,141J ...... Boeing Distribution Services, Inc., The Boeing Company ...... Boothwyn, PA ...... August 14, 2019. 96,141K ...... Boeing Distribution Services, Inc., The Boeing Company ...... Philadelphia, PA ...... August 14, 2019. 96,141L ...... Boeing Distribution Services, Inc., The Boeing Company ...... Coppell, TX ...... August 14, 2019. 96,141M ...... Boeing Distribution Services, Inc., The Boeing Company ...... Fort Worth, TX ...... August 14, 2019. 96,141N ...... Boeing Distribution Services, Inc., The Boeing Company ...... Houston, TX ...... August 14, 2019. 96,141O ...... Boeing Distribution Services, Inc., The Boeing Company ...... Kent, WA ...... August 14, 2019. 96,171 ...... Textron Aviation Inc., Textron, PDS Tech, APA Services, Aviation Con- Independence, KS ...... August 31, 2019. sulting Experts Inc.

The following certifications have been International Trade Commission) of the issued. The requirements of Section Trade Act have been met. 222(e) (firms identified by the

TA–W No. Subject firm Location Impact date

96,571 ...... Pactiv LLC ...... Abilene, TX ...... September 10, 2019. 96,575 ...... Nan Ya Plastics Corporation USA ...... Wharton, TX ...... September 10, 2019. 96,578 ...... Greenfield Cabinetry, LLC, a subsidiary of the Corsi Group, Inc ...... Elkins, WV ...... April 17, 2019. 96,580 ...... Sonoco Products, Plastics/Perimeter of the Store ...... Yakima, WA ...... September 10, 2019. 96,588 ...... Plastic Ingenuity, Inc ...... Maumelle, AR ...... September 10, 2019. 96,596 ...... Mercury Plastics, Inc ...... Chicago, IL ...... September 10, 2019. 96,598 ...... Mercury Plastics, Inc., Felpak ...... Franklin Park, IL ...... September 10, 2019. 96,602 ...... Solo Cup Operating Corporation, an affiliated entity of Dart Container Urbana, IL ...... September 10, 2019. Corporation. 96,604 ...... Solo Cup Operating Corporation, an affiliated entity of Dart Container Chicago, IL ...... September 10, 2019. Corporation.

Negative Determinations for Worker criteria for TAA have not been met for total/partial separation or threat of total/ Adjustment Assistance the reasons specified. partial separation), or (e) (firms The investigation revealed that the identified by the International Trade In the following cases, the requirements of Trade Act section Commission), have not been met. investigation revealed that the eligibility 222(a)(1) and (b)(1) (significant worker

TA–W No. Subject firm Location Impact date

95,855 ...... Lipan Services LLC ...... San Angelo, TX. 95,856 ...... Rialto Services LLC ...... San Angelo, TX.

The investigation revealed that the acquisition of articles or services from a certified eligible to apply for TAA), and criteria under paragraphs (a)(2)(A)(i) foreign country), (b)(2) (supplier to a (e) (International Trade Commission) of (decline in sales or production, or both), firm whose workers are certified eligible section 222 have not been met. or (a)(2)(B) (shift in production or to apply for TAA or downstream services to a foreign country or producer to a firm whose workers are

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TA–W No. Subject firm Location Impact date

94,612 ...... Frank Morrow Company ...... Providence, RI.

The investigation revealed that the services from a foreign country), (b)(2) for TAA), and (e) (International Trade criteria under paragraphs (a)(2)(A) (supplier to a firm whose workers are Commission) of section 222 have not (increased imports), (a)(2)(B) (shift in certified eligible to apply for TAA or been met. production or services to a foreign downstream producer to a firm whose country or acquisition of articles or workers are certified eligible to apply

TA–W No. Subject firm Location Impact date

95,341 ...... Fishpeople Seafood Inc., BBSI Staffing ...... Toledo, OR. 95,536 ...... Johnson Controls, Inc., Building Technologies & Solutions Division, Plymouth, MN. Johnson Controls International. 95,564 ...... MSX International RSN LLC, Pacific (BC) Topco 5 Limited ...... Center Line, MI. 95,802 ...... Caldwell Corporation ...... Emporium, PA. 95,813 ...... United States Steel Corporation, Minnesota Ore Operations, G4S Se- Iron Mountain, MN. cure Solutions and Cleaning Specialist. 95,837 ...... Echo Canyon Crude Trucking, LLC, American Midstream Partners, San Angelo, TX. Crude Oil Trucking, Echo Canyon Pipeline, etc. 95,885 ...... Schlumberger Technology Corporation, Schlumberger Holdings Corpora- Denton, TX. tion, Amerit Fleet Solutions, Onsite Personnel. 95,932 ...... Triumph Aerospace Structures, Triumph Groups, Johnson Services Tulsa, OK. Group, Aerostructure, Chipton Ross, etc. 96,034 ...... Selmet, Inc., Consolidated Precision Products (CPP) ...... Albany, OR. 96,116 ...... Motorola Mobility LLC, Lenovo Group Limited, SDI ...... Chicago, IL. 96,151 ...... United States Gypsum Company, United States Gypsum Corporation, Norfolk, VA. Elite Staffing. 96,162 ...... ASARCO, LLC, ASARCO USA Inc., Staff Matters Inc ...... Amarillo, TX.

Determinations Terminating on the Department’s website, as The following determinations Investigations of Petitions for Trade required by Section 221 of the Act (19 terminating investigations were issued Adjustment Assistance U.S.C. 2271), the Department initiated because the petitioner has requested After notice of the petitions was investigations of these petitions. that the petition be withdrawn. published in the Federal Register and

TA–W No. Subject firm Location Impact date

96,071 ...... BAE Systems Controls Inc., Electronic Systems Division, BAE Systems, Fort Wayne, IN. Inc.

The following determinations in cases where the petition regarding the terminating investigations were issued investigation has been deemed invalid.

TA–W No. Subject firm Location Impact date

96,186 ...... Klean Karpet ...... Atlanta, GA.

The following determinations behalf the petition was filed is covered terminating investigations were issued under an existing certification. because the worker group on whose

TA–W No. Subject firm Location Impact date

95,800 ...... Xerox Corporation, Billing & Customer Support Division ...... Webster, NY. 96,132 ...... Southwick LLC, Southwick Apparel Division, Golden Fleece Manufac- Haverhill, MA. turing/Brooks Brothers. 96,158 ...... Matthew Warren Spring, Plant 1, MW Industries, Inc ...... Logansport, IN. 96,158A ...... Matthew Warren Spring, Plant 2, MW Industries, Inc ...... Logansport, IN. 96,158B ...... Matthew Warren Spring, Plant 3, MW Industries, Inc ...... Logansport, IN.

I hereby certify that the 2020 through November 30, 2020. These www.doleta.gov/tradeact/petitioners/ aforementioned determinations were determinations are available on the taa_search_form.cfm under the issued during the period of November 1, Department’s website https:// searchable listing determinations or by

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calling the Office of Trade Adjustment for Reconsideration, summaries of where affirmative determinations and Assistance toll free at 888–365–6822. Revised Certifications of Eligibility, certificates of eligibility were issued Signed at Washington, DC, this 9th day of summaries of Revised Determinations initially, but a minor error was December 2020. (after Affirmative Determination discovered after the certification was Hope D. Kinglock, Regarding Application for issued. The revised certifications are Reconsideration), summaries of Certifying Officer, Office of Trade Adjustment issued pursuant to the Secretary’s Assistance. Negative Determinations (after authority under section 223 of the Act Affirmative Determination Regarding [FR Doc. 2020–28207 Filed 12–21–20; 8:45 am] and 29 CFR 90.16. Revised Application for Reconsideration), Certifications of Eligibility are final BILLING CODE 4510–FN–P summaries of Revised Determinations determinations for purposes of judicial (on remand from the Court of review pursuant to section 284 of the DEPARTMENT OF LABOR International Trade), and summaries of Negative Determinations (on remand Act (19 U.S.C. 2395) and 29 CFR 90.19(a). Employment and Training from the Court of International Trade) Administration regarding eligibility to apply for trade Revised Certifications of Eligibility adjustment assistance under Chapter 2 Post-Initial Determinations Regarding of the Act (‘‘TAA’’) for workers by (TA– The following revised certifications of Eligiblity To Apply for Trade W) number issued during the period of eligibility to apply for TAA have been Adjustment Assistance November 1, 2020 through November issued. The date following the company 30, 2020. Post-initial determinations are name and location of each In accordance with Sections 223 and issued after a petition has been certified determination references the impact 284 (19 U.S.C. 2273 and 2395) of the or denied. A post-initial determination date for all workers of such Trade Act of 1974 (19 U.S.C. 2271, et may revise a certification, or modify or determination, and the reason(s) for the seq.) (‘‘Act’’), as amended, the affirm a negative determination. determination. Department of Labor herein presents Notice of Affirmative Determinations Notice of Revised Certifications of The following revisions have been Regarding Application for Eligibility issued. Reconsideration, summaries of Negative Revised certifications of eligibility Determinations Regarding Applications have been issued with respect to cases

TA–W No. Subject firm Location Impact date Reason(s)

95,068 ...... Matthew Warren Logansport, IN ...... 8/12/2018 Worker Group Clarification. Spring. 95,068A ...... Matthew Warren Logansport, IN ...... 8/12/2018 Worker Group Clarification. Spring. 95,068B ...... Matthew Warren Logansport, IN ...... 8/12/2018 Worker Group Clarification. Spring. 95,068C ...... Matthew Warren Logansport, IN ...... 8/12/2018 Worker Group Clarification. Spring. 95,935R ...... The Boeing Com- Working in Multiple Cities Throughout 5/21/2019 Increased Aggregate Imports. pany. Missouri, MO.

I hereby certify that the DEPARTMENT OF LABOR or partial separations began or aforementioned determinations were threatened to begin and the subdivision issued during the period of November 1, Employment and Training of the firm involved. 2020 through November 30, 2020. These Administration The petitioners or any other persons determinations are available on the showing a substantial interest in the Investigations Regarding Eligibility To Department’s website https:// subject matter of the investigations may Apply for Worker Adjustment request a public hearing provided such www.doleta.gov/tradeact/petitioners/ Assistance taa_search_form.cfm under the request is filed in writing with the searchable listing determinations or by Petitions have been filed with the Administrator, Office of Trade calling the Office of Trade Adjustment Secretary of Labor under Section 221(a) Adjustment Assistance, at the address Assistance toll free at 888–365–6822. of the Trade Act of 1974 (‘‘the Act’’) and shown below, no later than January 4, 2021. Signed at Washington, DC, this 9th day of are identified in the Appendix to this December 2020. notice. Upon receipt of these petitions, Interested persons are invited to the Administrator of the Office of Trade submit written comments regarding the Hope D. Kinglock, Adjustment Assistance, Employment subject matter of the investigations to Certifying Officer, Office of Trade Adjustment and Training Administration, has the Administrator, Office of Trade Assistance. instituted investigations pursuant to Adjustment Assistance, at the address [FR Doc. 2020–28209 Filed 12–21–20; 8:45 am] Section 221(a) of the Act. shown below, not later than January 4, BILLING CODE 4510–FN–P The purpose of each of the 2021. investigations is to determine whether The petitions filed in this case are the workers are eligible to apply for available for inspection at the Office of adjustment assistance under Title II, the Administrator, Office of Trade Chapter 2, of the Act. The investigations Adjustment Assistance, Employment will further relate, as appropriate, to the and Training Administration, U.S. determination of the date on which total Department of Labor, Room N–5428,

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200 Constitution Avenue NW, Signed at Washington, DC, this 9th day of Washington, DC 20210. December 2020. Hope D. Kinglock, Certifying Officer, Office of Trade Adjustment Assistance. Appendix

48 TAA PETITIONS INSTITUTED BETWEEN 11/1/20 AND 11/30/20

Subject firm Date of Date of TA–W (petitioners) Location institution petition

96572 ...... Metro Decor LLC (Workers) ...... Warren, OH ...... 11/05/20 10/23/20 96576 ...... IAC Group (Company Official) ...... Greencastle, IN ...... 11/06/20 10/27/20 96583 ...... Dentsply Sirona ( ) ...... York, PA ...... 11/02/20 11/02/20 96584 ...... Hunter Douglas (State Workforce Offi) ..... Cumberland, MD ...... 11/02/20 10/30/20 96585 ...... Lear Corporation (State Workforce Offi) ... Rochester Hills, MI ...... 11/02/20 10/30/20 96586 ...... Emerson Electric Company ( ) ...... Charlottesville, VA ...... 11/02/20 10/30/20 96587 ...... Shoal Creek Mine (Union Official) ...... Oakman, AL ...... 11/02/20 10/30/20 96588 ...... Plastic Ingenuity, Inc. (State Workforce Maumelle, AR ...... 11/03/20 11/02/20 Offi). 96589 ...... Pall Filter Specialists, Inc. (State Work- Grand Island, NE ...... 11/03/20 11/02/20 force Offi). 96590 ...... Allegro MicroSystems (Company Official) Marlborough, MA ...... 11/03/20 11/02/20 96591 ...... ABB Inc. (American Job Center) ...... Morristown, TN ...... 11/05/20 11/04/20 96592 ...... The Hall China Company (State Work- East Liverpool, OH ...... 11/06/20 11/05/20 force Offi). 96593 ...... Sodecia (Company Official) ...... Lake Orion, MI ...... 11/06/20 11/05/20 96594 ...... Pactiv LLC (State Workforce Offi) ...... Franklin Park, IL ...... 11/09/20 11/06/20 96595 ...... Pactiv LLC (State Workforce Offi) ...... Bridgeview, IL ...... 11/09/20 11/06/20 96596 ...... Mercury Plastics, Inc. (State Workforce Chicago, IL ...... 11/09/20 11/06/20 Offi). 96597 ...... Pactiv LLC (State Workforce Offi) ...... Bedford Park, IL ...... 11/09/20 11/06/20 96598 ...... Mercury Plastics, Inc. (State Workforce Franklin Park, IL ...... 11/09/20 11/06/20 Offi). 96599 ...... Klockner Pentaplast of America Inc. Beaver, WV ...... 11/09/20 11/04/20 (State Workforce Offi). 96600 ...... Kinyo Virginia/DYC (State Workforce Offi) Virginia Beach, VA ...... 11/09/20 11/06/20 96601 ...... Ex-Tech Plastics, Inc. (State Workforce Richmond, IL ...... 11/09/20 11/06/20 Offi). 96602 ...... Solo Cup Operating Corporation (State Urbana, IL ...... 11/09/20 11/06/20 Workforce Offi). 96603 ...... D & W Fine Pack, LLC (State Workforce Elk Grove Village, IL ...... 11/09/20 11/06/20 Offi). 96604 ...... Solo Cup Operating Corporation (State Chicago, IL ...... 11/09/20 11/06/20 Workforce Offi). 96606 ...... Broadwind Heavy Fabrications (State Abilene, TX ...... 11/10/20 11/09/20 Workforce Offi). 96607 ...... Pactiv Packaging Inc (State Workforce Mineral Wells, WV ...... 11/10/20 11/04/20 Offi). 96608 ...... Methode Electronics (Company Official) .. Carthage, IL ...... 11/12/20 11/10/20 96609 ...... Wabel Tool Company (State Workforce Decatur, IL ...... 11/12/20 11/10/20 Offi). 96610 ...... Kennametal Inc. (American Job Center) .. Johnson City, TN ...... 11/12/20 11/10/20 96611 ...... Damascus Steel, LLC (Company Official) New Brighton, PA ...... 11/13/20 11/12/20 96612 ...... Howmet (Union Official) ...... Niles, OH ...... 11/16/20 11/13/20 96613 ...... Tenet/Baptist Health Systems (State San Antonio, TX ...... 11/17/20 11/16/20 Workforce Offi). 96614 ...... Vishay Dale Electronics, LLC (State Yankton, SD ...... 11/17/20 11/16/20 Workforce Offi). 96615 ...... Alpha Surgical, Inc. (State Workforce Offi) North Providence, RI ...... 11/17/20 11/16/20 96616 ...... Vanguard Home Medical Equipment Warwick, RI ...... 11/17/20 11/16/20 (State Workforce Offi). 96617 ...... HKR USA Hikari (State Workforce Offi) ... Orangeburg, SC ...... 11/18/20 11/17/20 96618 ...... BCS Access Systems US LLC (Company Auburn, NY ...... 11/18/20 11/17/20 Official). 96619 ...... Mondi Akrosil LLC. (Company Official) ..... Pleasant Prairie, WI ...... 11/19/20 11/18/20 96620 ...... McKesson Medical (State Workforce Offi) Irving, TX ...... 11/20/20 11/19/20 96621 ...... Eaton Corporation (Union Official) ...... Auburn, IN ...... 11/23/20 11/19/20 96622 ...... Paul Hughes (Company Official) ...... Council Bluffs, IA ...... 11/23/20 11/22/20 96623 ...... BuzziSpace Inc. (State Workforce Offi) .... High Point, NC ...... 11/23/20 11/20/20 96624 ...... Paulsboro Refining Company, LLC (State Paulsboro, NJ ...... 11/24/20 11/23/20 Workforce Offi). 96625 ...... Bettering Builders (Company Official) ...... Soddy Daisy, TN ...... 11/24/20 11/23/20 96626 ...... Bard Davol (State Workforce Offi) ...... Warwick, RI ...... 11/24/20 11/23/20

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48 TAA PETITIONS INSTITUTED BETWEEN 11/1/20 AND 11/30/20—Continued

Subject firm Date of Date of TA–W (petitioners) Location institution petition

96627 ...... Follett Corporation (State Workforce Offi) Westchester, IL ...... 11/24/20 11/20/20 96628 ...... Acuity Brands Lighting INC (State Work- Fishers, IN ...... 11/27/20 11/25/20 force Offi). 96629 ...... Buhler Versatile USA, Inc. (State Work- Willmar, MN ...... 11/27/20 11/25/20 force Offi).

[FR Doc. 2020–28208 Filed 12–21–20; 8:45 am] automated collection techniques or Total Estimated Number of BILLING CODE P other forms of information technology. Respondents: 30. FOR FURTHER INFORMATION CONTACT: Total Estimated Number of Mara Blumenthal by telephone at 202– Responses: 210. DEPARTMENT OF LABOR 693–8538, or by email at DOL_PRA_ Total Estimated Annual Time Burden: [email protected]. 210 hours. Office of the Secretary Total Estimated Annual Other Costs SUPPLEMENTARY INFORMATION: Sections Burden: $0. Agency Information Collection 410 and 423 of the Robert T. Stafford Activities; Submission for OMB Disaster Relief and Emergency Authority: 44 U.S.C. 3507(a)(1)(D). Review; Comment Request; Disaster Assistance Act provide for Disaster Dated: December 17, 2020. Unemployment Assistance Activities Unemployment Assistance (DUA) to Mara Blumenthal, Report eligible applicants who are unemployed Senior PRA Analyst. as a direct result of a major disaster. [FR Doc. 2020–28267 Filed 12–21–20; 8:45 am] ACTION: Notice of availability; request State Workforce Agencies, through BILLING CODE 4510–FW–P for comments. individual agreements with the Secretary of Labor, act as agents of the SUMMARY: The Department of Labor Federal government in providing DUA. OFFICE OF THE FEDERAL REGISTER (DOL) is submitting this Employment Form ETA 902 is a monthly report that and Training Administration (ETA)- a State submits on DUA program Publication Procedures for Federal sponsored information collection activities once the President declares a request (ICR) to the Office of Register Documents During a Funding disaster. The Social Security Act section Hiatus Management and Budget (OMB) for 303(a)(6) authorizes this information review and approval in accordance with collection. For additional substantive AGENCY: Office of the Federal Register. the Paperwork Reduction Act of 1995 information about this ICR, see the ACTION: Notice of special procedures. (PRA). Public comments on the ICR are related notice published in the Federal invited. Register on April 7, 2020 (85 FR 19505). SUMMARY: In the event of an DATES: The OMB will consider all This information collection is subject appropriations lapse, the Office of the written comments that agency receives to the PRA. A Federal agency generally Federal Register (OFR) would be on or before January 21, 2021. cannot conduct or sponsor a collection required to publish documents directly ADDRESSES: Written comments and of information, and the public is related to the performance of recommendations for the proposed generally not required to respond to an governmental functions necessary to information collection should be sent information collection, unless the OMB address imminent threats to the safety of within 30 days of publication of this approves it and displays a currently human life or protection of property and notice to www.reginfo.gov/public/do/ valid OMB Control Number. In addition, documents related to funded programs PRAMain. Find this particular notwithstanding any other provisions of if delaying publication until the end of information collection by selecting law, no person shall generally be subject the appropriations lapse would prevent ‘‘Currently under 30-day Review—Open to penalty for failing to comply with a or significantly damage the execution of for Public Comments’’ or by using the collection of information that does not funded functions at the agency. Since it search function. display a valid OMB Control Number. would be impracticable for the OFR to Comments are invited on: (1) Whether See 5 CFR 1320.5(a) and 1320.6. make case-by-case determinations as to the collection of information is DOL seeks PRA authorization for this whether certain documents are directly necessary for the proper performance of information collection for three (3) related to activities that qualify for an the functions of the Department, years. OMB authorization for an ICR exemption under the Antideficiency including whether the information will cannot be for more than three (3) years Act, the OFR will place responsibility have practical utility; (2) if the without renewal. The DOL notes that on agencies submitting documents to information will be processed and used information collection requirements certify that their documents are in a timely manner; (3) the accuracy of submitted to the OMB for existing ICRs authorized under the Act. the agency’s estimates of the burden and receive a month-to-month extension FOR FURTHER INFORMATION CONTACT: cost of the collection of information, while they undergo review. Katerina Horska, Director of Legal including the validity of the Agency: DOL–ETA. Affairs and Policy, or Miriam Vincent, methodology and assumptions used; (4) Title of Collection: Disaster Staff Attorney, Office of the Federal ways to enhance the quality, utility and Unemployment Assistance Activities Register, National Archives and Records clarity of the information collection; and Report. Administration, (202) 741–6030 or (5) ways to minimize the burden of the OMB Control Number: 1205–0051. [email protected]. collection of information on those who Affected Public: State, Local, and SUPPLEMENTARY INFORMATION: Due to the are to respond, including the use of Tribal Governments. possibility of a lapse in appropriations

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and in accordance with the provisions funded under prior year appropriations, Records Administration facility. We of the Antideficiency Act, as amended will not be published. invite you to comment on this proposed by Public Law 101–508, 104 Stat. 1388 In another opinion issued on information collection pursuant to the (31 U.S.C. 1341), the OFR announces December 13, 1995, Effect of Paperwork Reduction Act of 1995. special procedures for agencies Appropriations for Other Agencies and DATES: We must receive written submitting documents for publication in Branches on the Authority to Continue comments on or before February 22, the Federal Register. Department of Justice Functions During 2021. In the event of an appropriations the Lapse in the Department’s lapse, the OFR would be required to Appropriations, the OLC found that the ADDRESSES: Send comments by email to publish documents directly related to necessary-implication exception [email protected]. Because our the performance of governmental allowed unfunded agencies to provide buildings are temporarily closed during functions necessary to address support to funded agencies or programs the COVID–19 restrictions, we are not imminent threats to the safety of human under certain conditions. Based on OLC able to receive comments by mail during life or protection of property and interpretation of the December 12, 1995 this time. documents related to funded programs opinion, as this applies to the OFR, if an FOR FURTHER INFORMATION CONTACT: if delaying publication until the end of agency with current appropriations Tamee Fechhelm, Paperwork Reduction the appropriations lapse would prevent submits a document for publication and Act Officer, by email at or significantly damage the execution of certifies that delaying publication until [email protected] or by funded functions at the agency. Since it the end of the appropriations lapse telephone at 301.837.1694 with requests would be impracticable for the OFR to would prevent or significantly damage for additional information or copies of make case-by-case determinations as to the execution of funded functions at the the proposed information collection and whether certain documents are directly agency, then publication in the Federal supporting statement. related to activities that qualify for an Register will be a function or service SUPPLEMENTARY INFORMATION: Pursuant exemption under the Antideficiency excepted under the Anti-Deficiency Act. to the Paperwork Reduction Act of 1995 Act, the OFR will place responsibility At the onset of a funding hiatus, the (Pub. L. 104–13), NARA invites the on agencies submitting documents to OFR may suspend the regular three-day public and other Federal agencies to certify that their documents are publication schedule to permit a limited comment on proposed information authorized under the Act. number of exempt personnel to process collections. The comments and During a funding hiatus affecting one emergency documents. Agency officials suggestions should address one or more or more Federal agencies, the OFR will will be informed as to the schedule for of the following points: (a) Whether the remain open to accept and process filing and publishing individual proposed information collection is documents authorized to be published documents. necessary for NARA to properly perform OFR has posted frequently asked in the daily Federal Register in the its functions; (b) our estimate of the questions and transmittal letter absence of continuing appropriations. burden of the proposed information templates on the following website, An agency wishing to submit a collection and its accuracy; (c) ways we which will be updated as possible: document to the OFR during a funding could enhance the quality, utility, and https://www.archives.gov/federal- hiatus must attach a transmittal letter to clarity of the information we collect; (d) register/the-federal-register/shutdown- the document which certifies that ways we could minimize the burden on faqs. publication in the Federal Register is respondents of collecting the necessary: Authority: The authority for this action is information, including through Unfunded Agencies or Programs 44 U.S.C. 1502 and 1 CFR 2.4 and 5.1. information technology; and (e) whether • To safeguard human life, protect Oliver A. Potts, this collection affects small businesses. property, or Director of the Federal Register. We will summarize any comments you • Provide other emergency services [FR Doc. 2020–28299 Filed 12–18–20; 8:45 am] submit and include the summary in our request for OMB approval. All consistent with the performance of BILLING CODE 1301–00–P functions and services exempted under comments will become a matter of the Antideficiency Act. public record. In this notice, we solicit comments NATIONAL ARCHIVES AND RECORDS Funded Agencies or Programs concerning the following information ADMINISTRATION • Because delaying publication until collection: the end of the appropriations lapse [NARA–2021–011] Title: Researcher Application. would prevent or significantly damage OMB number: 3095–0016. the execution of funded functions at the Agency Information Collection Agency form number: NA Form agency. Activities: Proposed Collection; 14003. Under the August 16, 1995 opinion of Comment Request Type of review: Regular. the Office of Legal Counsel of the AGENCY: National Archives and Records Affected public: Individuals or Department of Justice (OLC), Administration (NARA). households, business or other for-profit, Government Operations in the Event of ACTION: Notice of proposed extension not-for-profit institutions, Federal, State, a Lapse in Appropriations, exempt request. Local or Tribal Government. functions and services would include Estimated number of respondents: activities such as those related to the SUMMARY: We propose to request an 17,500. constitutional duties of the President, extension from the Office of Estimated time per response: 8 food and drug inspection, air traffic Management and Budget (OMB) of a minutes. control, responses to natural or currently approved information Frequency of response: On occasion. manmade disasters, law enforcement collection used by individuals applying Estimated total annual burden hours: and supervision of financial markets. for a research card. Research cards are 2,333 hours. Documents related to normal or routine necessary for access to original archival Abstract: The information collection activities of Federal agencies, even if records in a National Archives and is prescribed by 36 CFR 1254.8. The

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collection is an application for a Call Report. The financial and statistical NATIONAL CREDIT UNION research card, which people need before information is essential to NCUA in ADMINISTRATION they can access original records in a carrying out its responsibility for NARA facility. Respondents are supervising corporate credit unions. The Agency Information Collection individuals who wish to use original Federal Credit Union Act, 12 U.S.C. Activities: Proposed Collection; archival records. NARA uses the 1762, specifically requires federal credit Comment Request; Fair Credit information to screen individuals, to unions to report the identity of credit Reporting Disclosure and identify which types of records they can union officials. Section 741.6(a) requires Recordkeeping Requirements use, and to allow further contact. federally-insured credit unions to AGENCY: National Credit Union submit a Report of Officials annually to Swarnali Haldar, Administration (NCUA). NCUA containing the annual Executive for Information Services/CIO. certification of compliance with security ACTION: Notice and request for comment. [FR Doc. 2020–28137 Filed 12–21–20; 8:45 am] requirements. The branch information is SUMMARY: The National Credit Union BILLING CODE 7515–01–P requested under the authority of § 741.6 Administration (NCUA), as part of a of the NCUA Rules and Regulations. continuing effort to reduce paperwork NCUA utilizes the information to and respondent burden, invites the NATIONAL CREDIT UNION monitor financial conditions in general public and other Federal ADMINISTRATION corporate credit unions and to allocate agencies to comment on the following supervision and examination resources. extension of a currently approved Submission for OMB Review; Type of Review: Revision of a collection, as required by the Paperwork Comment Request currently approved collection. Reduction Act of 1995. Affected Public: Private Sector: Not- AGENCY: National Credit Union DATES: Written comments should be Administration (NCUA). for-profit institutions. Estimated Total Annual Burden received on or before February 22, 2021 ACTION: Notice. Hours: 539. to be assured consideration. SUMMARY: The National Credit Union OMB Number: 3133–0186. ADDRESSES: Interested persons are Administration (NCUA) will be Title: Higher-Risk Mortgage invited to submit written comments on submitting the following information Appraisals. the information collection to Dawn collection requests to the Office of Abstract: Section 1471 of the Dodd- Wolfgang, National Credit Union Management and Budget (OMB) for Frank Act established Truth in Lending Administration, 1775 Duke Street, Suite review and clearance in accordance section 129H, which contains appraisal 6032, Alexandria, Virginia 22314; Fax with the Paperwork Reduction Act of requirements applicable to higher-risk No. 703–548–2279; or email at 1995 on or after the date of publication mortgages and prohibits a creditor from [email protected]. Given the of this notice. extending credit in the form of a higher- limited in-house staff because of the DATES: Comments should be received on risk mortgage loan to any consumer COVID–19 pandemic, email comments or before January 21, 2021 to be assured without meeting those requirements. A are preferred. of consideration. higher-risk mortgage is defined as a FOR FURTHER INFORMATION CONTACT: residential mortgage loan secured by a ADDRESSES: Written comments and Address requests for additional principal dwelling with an annual recommendations for the proposed information to Dawn Wolfgang at the percentage rate that exceeds the average information collection should be sent address above or telephone 703–548– prime offer rate for a comparable within 30 days of publication of this 2279. transaction as of the date the interest notice to www.reginfo.gov/public/do/ SUPPLEMENTARY INFORMATION rate is set by certain enumerated : PRAMain. Find this particular percentage point spreads. To implement OMB Number: 3133–0165. information collection by selecting this statutory requirement, a final rule Title: Fair Credit Reporting (FCRA). ‘‘Currently under 30-day Review—Open Type of Review: Extension of a was promulgated to amend 12 CFR part for Public Comments’’ or by using the currently approved collection. 1026, Regulation Z. search function. The recordkeeping and disclosure Abstract: The Fair Credit Reporting FOR FURTHER INFORMATION CONTACT: requirements prescribed under Act (FCRA) (15 U.S.C. 1681 et seq.) sets Copies of the submission may be § 1026.35 are necessary to protect standards for the collection, obtained by contacting Dawn Wolfgang consumers, and promote the safety and communication, and use of information at (703) 548–2279, emailing soundness of creditors making higher- bearing on a consumer’s [email protected], or viewing risk mortgage loans. creditworthiness, credit standing, credit the entire information collection request Type of Review: Extension of a capacity, character, general reputation, at www.reginfo.gov. currently approved collection. personal characteristics, or mode of SUPPLEMENTARY INFORMATION: Affected Public: Private Sector: Not- living. FCRA has been revised OMB Number: 3133–0067. for-profit institutions. numerous times since it took effect, Title: Corporate Credit Union Monthly Estimated Total Annual Burden notably by passage of the Consumer Call Report and Annual Report of Hours: 276. Credit Reporting Reform Act of 1996, Officers. By Melane Conyers-Ausbrooks, the Gramm-Leach-Bliley Act of 1999, Form: NCUA 5310. Secretary of the Board, the National and the Fair and Accurate Credit Abstract: Section 202(a)(1) of the Credit Union Administration, on Transactions Act of 2003. Federal Credit Union Act (Act) requires December 16, 2020. The Dodd-Frank Wall Street Reform federally insured credit unions to make and Consumer Protection Act (DFA) reports of condition to the NCUA Board Dated: December 17, 2020. amended a number of consumer upon dates selected by it. Corporate Dawn D. Wolfgang, financial protection laws, including credit unions report this information NCUA PRA Clearance Officer. most provisions of FCRA. In addition to monthly on NCUA Form 5310, also [FR Doc. 2020–28182 Filed 12–21–20; 8:45 am] substantive amendments, the DFA known as the Corporate Credit Union BILLING CODE 7535–01–P transferred rulemaking authority for

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most provisions of FCRA to the By Melane Conyers-Ausbrooks, respond to the collection of information Consumer Financial Protection Bureau Secretary of the Board, the National unless it displays a currently valid OMB (CFPB). Pursuant to the DFA and FCRA, Credit Union Administration, on control number. as amended, CFPB promulgated December 16, 2020. Title of Collection: Business Systems Regulation V, 12 CFR 1022, to Dated: December 17, 2020. Review Guide. OMB Number: 3145–NEW. implement those provisions of FCRA for Dawn D. Wolfgang, which CFPB has rulemaking authority. Type of Request: Request for approval NCUA PRA Clearance Officer. Regulation V contains several to establish an information collection. requirements that impose information [FR Doc. 2020–28184 Filed 12–21–20; 8:45 am] Proposed Project: The National collection requirements on federal BILLING CODE 7535–01–P Science Foundation Act of 1950 (Pub. L. credit unions (FCUs). 81–507) set forth NSF’s mission and The DFA did not transfer certain purpose: rulemaking authority under FCRA. NATIONAL SCIENCE FOUNDATION ‘‘To promote the progress of science; Specifically, the DFA did not transfer to to advance the national Agency Information Collection CFPB the authority to promulgate the health, prosperity, and welfare; to Activities: Comment Request; National requirement to properly dispose of secure the national defense.* * *’’ Science Foundation-Managed Honor The Act authorized and directed NSF consumer information; rules on identity Awards to initiate and support: theft red flags and corresponding b Basic scientific research and interagency guidelines on identity theft AGENCY: National Science Foundation. research fundamental to the engineering detection, prevention, and mitigation, ACTION: Submission for OMB Review; process; and rules on the duties of card issuers comment request. b Programs to strengthen scientific regarding changes of address. These and engineering research potential; SUMMARY: The National Science provisions are promulgated in NCUA’s b Science and engineering education Foundation (NSF) has submitted the Fair Credit Reporting regulation, 12 CFR programs at all levels and in all the following information collection 717, which applies to federal credit various fields of science and requirement to OMB for review and unions. engineering; clearance under the Paperwork The collection of information b Programs that provide a source of Reduction Act of 1995. This is the pursuant to Parts 1022 and 717 is information for policy formulation; and triggered by specific events and second notice for public comment; the b Other activities to promote these disclosures and must be provided to first was published in the Federal ends. consumers within the time periods Register, and no comments were Among Federal agencies, NSF is a established under the regulation. received. NSF is forwarding the leader in providing the academic Affected Public: Private Sector: Not- proposed submission to the Office of community with advanced for-profit institutions; Individuals or Management and Budget (OMB) for instrumentation needed to conduct Households. clearance simultaneously with the state-of-the-art research and to educate Estimated Number of Respondents: publication of this second notice. the next generation of scientists, FCU: 3,232; Consumer: 143,300. DATES: Written comments and engineers and technical workers. The Estimated Frequency of Response: recommendations for the proposed knowledge generated by these tools Upon occurrence of triggering action. information collection should be sent sustains U.S. leadership in science and Estimated Burden Hours per within 30 days of publication of this engineering (S&E) to drive the U.S. Response: FCU: 5.07; Consumer: 0.08. notice to www.reginfo.gov/public/do/ economy and secure the future. NSF’s Estimated Total Annual Burden PRAmain. Find this particular responsibility is to ensure that the Hours: 272,686 (FCU: 248,827; information collection by selecting research and education communities Consumer: 23,859). ‘‘Currently under 30-day Review—Open have access to these resources, and to Request for Comments: Comments for Public Comments’’ or by using the provide the support needed to utilize submitted in response to this notice will search function. them optimally, and implement timely be summarized and included in the FOR FURTHER INFORMATION CONTACT: upgrades. request for Office of Management and Suzanne H. Plimpton, Reports Clearance The scale of advanced Budget approval. All comments will Officer, National Science Foundation, instrumentation ranges from small become a matter of public record. The 2415 Eisenhower Avenue, Alexandria, research instruments to shared public is invited to submit comments VA 22314, or send email to splimpto@ resources or facilities that can be used concerning: (a) Whether the collection nsf.gov. Individuals who use a by entire communities. The demand for of information is necessary for the telecommunications device for the deaf such instrumentation is very high, and proper execution of the function of the (TDD) may call the Federal Information is growing rapidly, along with the pace agency, including whether the Relay Service (FIRS) at 1–800–877– of discovery. For major facilities and information will have practical utility; 8339, which is accessible 24 hours a shared infrastructure, the need is (b) the accuracy of the agency’s estimate day, 7 days a week, 365 days a year particularly high. This trend is expected of the burden of the collection of (including federal holidays). to accelerate in the future as increasing information, including the validity of Copies of the submission may be numbers of researchers and educators the methodology and assumptions used; obtained by calling 703–292–7556. rely on such large facilities, (c) ways to enhance the quality, utility, SUPPLEMENTARY INFORMATION: NSF may instruments, and databases to provide and clarity of the information to be not conduct or sponsor a collection of the reach to make the next intellectual collected; and (d) ways to minimize the information unless the collection of leaps. NSF currently provides support burden of the collection of the information displays a currently valid for facility construction from two information on the respondents, OMB control number and the agency accounts: The Major Research including the use of automated informs potential persons who are to Equipment and Facility Construction collection techniques or other forms of respond to the collection of information (MREFC) account, and the Research and information technology. that such persons are not required to Related Activities (R&RA) account. The

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MREFC account, established in FY effective in meeting administrative annual Major Facility Portfolio Risk 1995, is a separate budget line item that responsibilities and satisfying Federal Assessment and the assessment of provides an agency-wide mechanism, regulatory requirements, including various risks factors. permitting directorates to undertake those listed in NSF’s Proposal & Award Burden to the Public: The Foundation large facility projects that exceed 10% of Policies & Procedures Guide (PAPPG). estimates that approximately one and the Directorate’s annual budget; or These reviews are not considered half (1.5) Full Time Equivalents (FTEs) roughly $70M or greater. Smaller audits but are intended to be assistive in are necessary for each major facility projects continue to be supported from nature; aiding the Recipient in following project to respond to a BSR the R&RA Account. Facilities are good practices where appropriate and requirements on an annual basis; or defined as shared-use infrastructure, bringing them into compliance, if 2,824 hours per year. With an average of instrumentation and equipment that are needed. A team of BSR Participants is four (4) conducted a year, this equates accessible to a broad community of assembled to assess the Recipient’s to roughly 5 FTEs or 11,296 public researchers and/or educators. Facilities policies, procedures, and practices to burden hours annually. may be centralized or may consist of determine whether, taken collectively, Dated: December 17, 2020. distributed installations. They may these administrative business systems Suzanne H. Plimpton, used in managing the Facility meet NSF incorporate large-scale networking or Reports Clearance Officer, National Science computational infrastructure, multi-user award expectations and comply with Foundation. instruments or networks of such Federal regulations. [FR Doc. 2020–28220 Filed 12–21–20; 8:45 am] instruments, or other infrastructure, The BSR Guide is designed for use by instrumentation and equipment having both our customer community and NSF BILLING CODE 7555–01–P a major impact on a broad segment of staff for guidance in leading these a scientific or engineering discipline. reviews. The BSR Guide defines the NATIONAL SCIENCE FOUNDATION Historically, awards have been made for overall framework and structure and such diverse projects as accelerators, summarizes the details outlined in the Request for Information on Potential telescopes, research vessels and aircraft, internal operating guidelines and Concepts and Approaches for a and geographically distributed but procedures used by BSR Participants to National Strategic Computing Reserve networked sensors and instrumentation. execute the review process. (NSCR) The growth and diversification of Management principles and practices large facility projects require that NSF are specified for seven core functional AGENCY: Office of Science and remain attentive to the ever-changing areas (CFA) and are used by BSR Technology Policy (OSTP), Networking issues and challenges inherent in their Participants in performing these and Information Technology Research planning, construction, operation, evaluations. Roles and responsibilities and Development (NITRD) National management and oversight. Most of the NSF stakeholders involved in the Coordination Office (NCO), National importantly, dedicated, competent NSF process are outlined in the BSR Guide Science Foundation. and awardee staff are needed to manage as well as the expectations of the ACTION: Request for information. and oversee these projects; giving the Recipient. SUMMARY: OSTP and the National attention and oversight that good This version of the Business Systems Science and Technology Council’s practice dictates and that proper Guide aligns with the Uniform (NSTC) Subcommittees on the Future accountability to taxpayers and Guidance and the NSF Major Facilities Advanced Computing Ecosystem Congress demands. To this end, there is Guide. (FACE) and Networking and also a need for consistent, documented This Guide will be updated Information Technology Research and requirements and procedures to be periodically to reflect changes in Development (NITRD) request input understood and used by NSF program requirements, policies and/or from interested parties on the goals, managers and awardees for all such procedures. Award Recipients are value, and necessary approaches for major projects. expected to monitor and adopt the Use of the Information: Facilities are requirements and best practices establishing a National Strategic an essential part of the science and included in the Guide. Computing Reserve (NSCR). The NSCR engineering enterprise and supporting The submission of Award Recipient may be envisioned as a coalition of them is one major responsibility of the and Project administrative business experts and resource providers that National Science Foundation (NSF). process and procedural documentation could be mobilized quickly to provide NSF makes awards to external entities— used in support of operations of the critical computational resources primarily universities, consortia of Major Facilities is part of the collection (including compute, software, data, and universities or non-profit of information. This information is used technical expertise) in times of urgent organizations—to undertake to help NSF fulfill this responsibility in need. This Request for Information will construction, management and supporting merit-based research and help inform potential attributes of a operation of facilities. Such awards education projects in all the scientific NSCR. frequently take the form of cooperative and engineering disciplines. The DATES: Interested persons are invited to agreements. NSF does not directly Foundation also has a continuing submit comments on or before 11:59 construct or operate the facilities it commitment to provide oversight on p.m. (ET) on January 16, 2021. supports. However, NSF retains facilities design and construction which ADDRESSES: Comments submitted in responsibility for overseeing their must be balanced against monitoring its response to this notice may be sent by development, management and information collection so as to identify any of the following methods: successful performance. Business and address any excessive review and • Email: [email protected]. Email Systems Reviews (BSR) of the National reporting burdens. submissions should be machine- Science Foundation’s (NSF) Major NSF has approximately twenty-four readable and not be copy-protected. Facilities are designed to provide (24) Major Facilities in various stages of Submissions should include ‘‘RFI reasonable assurance that the business design, construction, operations and Response: National Strategic Computing systems (people, processes, and divestment. The need for a BSR and Reserve’’ in the subject line of the technologies) of NSF Recipients are review scope is based on NSF’s internal message.

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• Fax: (202) 459–9673, Attn: Ji Lee. • Worked together across institutional for NSCR computational resources be • Mail: Attn: Ji Lee, NCO, 2415 and organizational boundaries within considered? What should constitute Eisenhower Avenue, Alexandria, VA government, industry, and academia to eligibility to apply for computational 22314, USA. create a common portal to access resources? What kind of eligibility Instructions: Response to this RFI is computational resources and to coalesce restrictions/selection criteria would be voluntary. Each individual or institution ad hoc efforts in smaller ‘‘consortia’’ appropriate for users and the use cases is requested to submit only one around the country; of applications of NSCR? response. Submissions must not exceed • Ramped up quickly to meet urgent 5. Community Formation: What types 10 pages in 12 point or larger font, with computational resource requirements of community outreach and a page number provided on each page. not easily available through other communications will help enhance the Responses should include the name of means; this ramp-up included the likelihood of connecting the NSCR the person(s) or organization(s) filing development and adaptation of review, computational resources to the relevant the comment. Responses to this RFI may matching and on-boarding processes for computational, scientific, and be posted online at http:// accessing these resources; emergency-response communities? With www.nitrd.gov. Therefore, no business • Set up a communications and user what organizations and services should proprietary information, copyrighted engagement framework for a worldwide the NSCR coordinate to enhance its information, or personally identifiable community; and effectiveness? • information should be submitted in Accelerated explorations in basic 6. Partnership Agreements: What are response to this RFI. understanding of the SARS–CoV2 virus, key aspects of partnership agreements In accordance with FAR 15.202(3), its host interactions, strategies to (e.g., access to results, intellectual responses to this notice are not offers mitigate its spread, and early-stage drug property rights) that can help sustain and cannot be accepted by the development. the NSCR over time? Government to form a binding contract. With this RFI, we seek to aggregate 7. Relationship to Other Strategic Responders are solely responsible for all the lessons learned from the COVID–19 Reserves: Are there other strategic expenses associated with responding to HPC Consortium with other broader reserves that are relevant to NSCR? How this RFI. community input towards the potential can NSCR connect or interface with design of a NSCR effort. those reserves? What lessons can be FOR FURTHER INFORMATION CONTACT: Ji Information Requested: Responders learned from other strategic reserves Lee at [email protected], 202–459–9674, are asked to answer one or more of the that might inform the process of or by post mailing to 2415 Eisenhower following questions in the responses to standing up a NSCR? Avenue, Alexandria, VA 22314, USA. the RFI: Submitted by the National Science Individuals who use a 1. Deployment Scenarios: What are Foundation in support of the Office of telecommunications device for the deaf envisioned scenarios under which it Science and Technology Policy and the (TDD) may call the Federal Information would be beneficial to make NSCR Networking and Information Relay Service (FIRS) at 1–800–877–8339 computational resources available for Technology Research and Development between 8 a.m. and 8 p.m., Eastern time, use? What are relevant characteristics to National Coordination Office on Monday through Friday. consider regarding the design of triggers December 16, 2020. SUPPLEMENTARY INFORMATION: The for activating and deactivating the (Authority: 42 U.S.C. 1861.) prompt, successful, and nimble NSCR? What approaches might the deployment of computational resources NSCR utilize to test readiness for such Suzanne H. Plimpton, (including expertise) via the COVID–19 scenarios? Are there other barriers to Reports Clearance Officer, National Science High-Performance Computing (HPC) activating NSCR that would need to be Foundation. Consortium has demonstrated its addressed? [FR Doc. 2020–28142 Filed 12–21–20; 8:45 am] essential role in the Nation’s response to 2. Computational Resources: By what BILLING CODE 7555–01–P emergencies. This backdrop has led to means will the NSCR computational the conceptualization of a National resources be recruited, vetted, and Strategic Computing Reserve (NSCR), sustained for use when needed? What NATIONAL TRANSPORTATION comprising a coalition of experts and are appropriate incentives and SAFETY BOARD resource providers that could be mechanisms for compensation? What mobilized quickly to provide critical principles might be employed in Sunshine Act Meeting computational resources (including assessing the suitability of resources for compute, software, data, and technical inclusion in the NSCR? What types of TIME AND DATE: 9:30 a.m., Tuesday, expertise) in times of urgent need. research (e.g., fundamental research, January 12, 2021. Background Information: The Controlled Unclassified Information PLACE: Virtual. COVID–19 HPC Consortium (https:// research, proprietary research) should STATUS: The one item may be viewed by covid19-hpc-consortium.org) was the NSCR be provisioned to support? the public through webcast only. formed in March 2020 and offers an 3. NSCR Providers: How should the MATTER TO BE CONSIDERED: example of how the consortium rapidly resource providers’ contributions to 64964—Pipeline Investigation Report— delivered scientific insights. The NSCR be determined? What approaches Atmos Energy Corporation Natural Consortium brought together the Federal should guide the selection and Gas-Fueled Explosion, Dallas, Government, industry, and academic allocation of the NSCR computational Texas, February 23, 2018 leaders to provide access to the world’s resources to users, and what roles do CONTACT PERSON FOR MORE INFORMATION: most powerful computational resources resource providers have in determining Candi Bing at (202) 590–8384 or by in support of COVID–19 research. these approaches? By what means can email at [email protected]. Within its first week of existence, the the NSCR computational resource Media Information Contact: Keith Consortium instantiated an operational providers opt in or opt out on Holloway by email at keith.holloway@ framework for providing computational computational resource allocations? ntsb.gov or at (202) 314–6100. resources for rapid crisis response. The 4. NSCR Users: By what means and This meeting will take place virtually. Consortium effectively: with what principles should allocations The public may view it through a live

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or archived webcast by accessing a link adams.html. To begin the search, select For the Nuclear Regulatory Commission. under ‘‘Webcast of Events’’ on the NTSB ‘‘Begin Web-based ADAMS Search.’’ For Nader L. Mamish, home page at www.ntsb.gov. problems with ADAMS, please contact Director, Office of Internal Programs. There may be changes to this event the NRC’s Public Document Room (PDR) Attachment—Order Suspending Export due to the evolving situation concerning reference staff at 1–800–397–4209, 301– Licenses the novel coronavirus (COVID–19). 415–4737, or by email to pdr.resource@ Schedule updates, including weather- nrc.gov. The ADAMS accession number Order Modifying Licenses To Suspend related cancellations, are also available for each document referenced (if it is Certain Exports to the United Kingdom at www.ntsb.gov. available in ADAMS) is provided the (Effective January 1, 2021) The National Transportation Safety first time that it is mentioned in this Board is holding this meeting under the document. I Government in the Sunshine Act, 5 • Attention: The PDR, where you may ConverDyn (or ‘‘the licensee’’) holds U.S.C. 552(b). examine, and order copies of public specific licenses XSOU8846/01 and Dated: Friday, December 18, 2020. documents is currently closed. You may XSOU8789/07 issued by the U.S. Candi R. Bing, submit your request to the PDR via Nuclear Regulatory Commission (NRC) Federal Register Liaison Officer. email at [email protected] or call 1– pursuant to Sections 62 and 127 of the [FR Doc. 2020–28405 Filed 12–18–20; 4:15 pm] 800–397–4209 between 8:00 a.m. and Atomic Energy Act of 1954, as amended BILLING CODE 7533–01–P 4:00 p.m. (EST), Monday through (AEA) and 10 CFR part 110. These Friday, except Federal holidays. specific licenses authorize the export of source material to France, Germany, the FOR FURTHER INFORMATION CONTACT: Netherlands, and the United Kingdom NUCLEAR REGULATORY Lauren Mayros, Office of International COMMISSION (U.K.) under the terms of an Agreement Programs, U.S. Nuclear Regulatory for Cooperation in Peaceful Uses of [NRC–2020–0271] Commission, Washington, DC 20555– Nuclear Energy (123 Agreement) 0001; telephone: 301–287–9088, email: between the United States (U.S.) and the Order to ConverDyn Suspending [email protected]. European Atomic Energy Community Exports of Certain Source Material SUPPLEMENTARY INFORMATION: The (EURATOM). AGENCY: Nuclear Regulatory United States engages in significant II Commission. nuclear cooperation with other nations, On December 31, 2020, the formal ACTION: Order; issuance. including the authorized distribution of transition period marking the United source material, pursuant to the terms of Kingdom’s (U.K.) exit from the SUMMARY: The U.S. Nuclear Regulatory an Agreement for Cooperation in European Union (EU) will end. On this Commission (NRC) is issuing an order to Peaceful Uses of Nuclear Energy (123 date, the U.K. will also exit from ConverDyn suspending its authority to Agreement). ConverDyn currently holds EURATOM. On January 1, 2021, the export certain source material to the two specific licenses, XSOU8846/01 and U.S./U.K.123 Agreement will enter into United Kingdom (U.K.). This XSOU8789/07, authorizing the export of force. At that time, ConverDyn’s export suspension is required due to the U.K.’s source material to several countries licenses, XSOU8846/01 and XSOU8789/ exit from the European Atomic Energy including the U.K. ConverDyn’s export 07 will authorize exports to France, Community (EURATOM). Exports of licenses were issued under the legal Germany, and the Netherlands under EURATOM-obligated and Canadian- framework of the 123 Agreement the legal framework of the U.S./ obligated source material to the U.K. are between the U.S. and EURATOM. EURATOM 123 agreement and will currently not authorized. On December 31, 2020, the U.K. will authorize exports to the U.K. under the DATES: This Order is effective on exit from EURATOM, and on January 1, legal framework of the U.S./U.K. 123 January 1, 2021. 2021, a 123 Agreement between the U.S. Agreement. After the U.K. exits ADDRESSES: Please refer to Docket ID and the U.K. will enter into force. The EURATOM, the NRC is prohibited from NRC–2020–0271 when contacting the U.S. Government has already made authorizing any exports of EURATOM- NRC about the availability of arrangements with the Government of obligated material from the U.S. to the information regarding this document. the U.K. for this transition to occur on U.K. until EURATOM, pursuant to the You may obtain publicly available January 1, 2021 for all NRC-licensed U.S./EURATOM 123 agreement, information related to this document exports to the U.K. However, beginning provides its pre-approval to retransfer using any of the following methods: on January 1, 2021, the NRC is currently EURATOM-obligated material from the • Federal Rulemaking Website: Go to unable to authorize the export of U.S. to the U.K. The NRC is likewise https://www.regulations.gov and search EURATOM-obligated and Canadian- prohibited from authorizing any exports for Docket ID NRC–2020–0271. Address obligated material from the U.S. to the of Canadian-obligated material from the questions about Docket IDs in U.K., until pre-approval to retransfer U.S. to the U.K. until the Government of Regulations.gov to Jennifer Borges; such material to the U.K. is received Canada, pursuant to the U.S./Canada telephone: 301–287–9127; email: from EURATOM or the Canadian 123 Agreement, provides its pre- [email protected]. For technical government, respectively. approval to retransfer Canadian- questions, contact the individual listed obligated material to the U.K. This suspension is required as an in the FOR FURTHER INFORMATION The U.S. Government has already operation of law and only applies to CONTACT section of this document. made arrangements with the • NRC’s Agencywide Documents exports of EURATOM-obligated or Government of the U.K. for the Access and Management System Canadian-obligated source material to transition from the U.S./EURATOM 123 (ADAMS): You may obtain publicly the U.K. The NRC is reproducing the Agreement to the U.S./U.K. 123 available documents online in the text of the order as an attachment to this Agreement to automatically occur on ADAMS Public Documents collection at Federal Register notice. January 1, 2021, for all NRC-approved https://www.nrc.gov/reading-rm/ Dated: December 17, 2020. export licenses to the U.K. However, the

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U.S. Government cannot authorize the PENSION BENEFIT GUARANTY programs to pay premiums to PBGC. All export of EURATOM-obligated or CORPORATION plans covered by title IV pay a flat-rate Canadian-obligated material from the per-participant premium. An U.S. to the U.K. without prior approval Submission of Information Collection underfunded single-employer plan also for retransfer from EURATOM or the for OMB Review; Comment Request; pays a variable-rate premium based on Canadian government, respectively. Payment of Premiums the value of the plan’s unfunded vested benefits. Therefore, beginning on January 1, 2021, AGENCY: Pension Benefit Guaranty ConverDyn will no longer be authorized Pursuant to section 4007, PBGC has Corporation. issued its regulation on Payment of to export EURATOM-obligated and ACTION: Notice of request for OMB Premiums (29 CFR part 4007). Under Canadian-obligated material to the U.K. approval of revised collection of § 4007.3 of the premium payment under licenses XSOU8846/01 and information. regulation, the plan administrator of XSOU8789/07 until such prior approval each pension plan covered by title IV of SUMMARY: The Pension Benefit Guaranty is received. ERISA is required to file a premium Corporation (PBGC) is modifying the III payment and information prescribed by collection of information under its PBGC for each premium payment year. Accordingly, pursuant to Sections 62, regulation on Payment of Premiums Premium information is filed (OMB control number 1212–0009; 64, 123, 127, 161b, 161i, 183, and 186 electronically using ‘‘My Plan expiring December 31, 2022) and of the AEA, and 10 CFR 110.50(a)(1) and Administration Account’’ (‘‘My PAA’’) requests that the Office of Management (2) and 110.52, IT IS HEREBY through PBGC’s website. Under and Budget (OMB) approve the revised § 4007.10 of the premium payment ORDERED, EFFECTIVE January 1, 2021, collection of information under the THAT LICENSES XSOU8846/01 AND regulation, plan administrators are Paperwork Reduction Act for three required to retain records about XSOU8789/07 ARE MODIFIED AS years. This notice informs the public of FOLLOWS: premiums and information submitted in PBGC’s request and solicits public premium filings. A. The licensee’s authorization to export comment on the collection of Premium filings report (i) the flat-rate EURATOM-obligated material to the U.K. is information premium and related data (all plans), (ii) suspended, and such exports are prohibited, DATES: Comments must be submitted on the variable-rate premium and related until the licensee receives notice from the or before January 21, 2021. data (single-employer plans), and (iii) NRC that the United States Government has ADDRESSES: Written comments and additional data such as identifying obtained EURATOM’s pre-approval, recommendations for the proposed information and miscellaneous plan- pursuant to the U.S./EURATOM 123 related or filing-related data (all plans). Agreement, to retransfer EURATOM- information collection should be sent within 30 days of publication of this PBGC needs this information to identify obligated material to the U.K. When the the plans for which premiums are paid, licensee receives such notice from the NRC, notice to https://www.reginfo.gov/ public/do/PRAMain. Find this to verify whether the amounts paid are this provision of the Order will expire correct, to help PBGC determine the without any further action by the NRC. particular information collection by selecting ‘‘Currently under 30-day magnitude of its exposure in the event B. The licensee’s authorization to export of plan termination, to help track the Canadian-obligated material to the U.K. is Review—Open for Public Comments’’ or by using the search function. creation of new plans and transfer of suspended, and such exports are prohibited, participants and plan assets and until the licensee receives notice from the A copy of the request will be posted on PBGC’s website at https:// liabilities among plans, and to keep NRC that the United States Government has PBGC’s insured-plan inventory up to obtained Canada’s approval, pursuant to the www.pbgc.gov/prac/laws-and- regulation/federal-register-notices-open- date. That information and the retained U.S./Canada 123 Agreement, to retransfer records are also needed for audit Canadian-obligated material to the U.K. for-comment. It may also be obtained by writing to Disclosure Division, Office of purposes. When the licensee receives such notice from PBGC intends to modify the 2021 the General Counsel, Pension Benefit the NRC, this provision of the Order will premium filing to require certain plans Guaranty Corporation, 1200 K Street expire without any further action by the that transferred assets to another plan NW, Washington, DC 20005–4026, or NRC. (or received assets from another plan) at calling 202–326–4040 during normal The NRC finds that this action is the beginning of the plan year to report business hours. TTY users may call the additional information about the required by operation of law and the Federal Relay Service toll-free at 800– transfer. More specifically, such plans common defense and security of the 877–8339 and ask to be connected to will be required to report whether the United States. Therefore, in accordance 202–326–4040. transfer was de minimis and, in the case with 10 CFR 110.52(c), the licensee FOR FURTHER INFORMATION CONTACT: of a de minimis merger, whether the need not be afforded an opportunity to Melissa Rifkin (rifkin.melissa@ transferee plan had fewer assets than the reply and be heard prior to issuance of pbgc.gov), Attorney, Regulatory Affairs transferor plan. This information is this Order. Division, Office of the General Counsel, necessary to verify that the date For the Nuclear Regulatory Commission Pension Benefit Guaranty Corporation, reported as the ‘‘participant count date’’ 1200 K Street NW, Washington, DC Nader L. Mamish, (i.e., the date as of which participants 20005–4026; 202–229–6563. (TTY users are counted for premium purposes) is Director, Office of International Programs. may call the Federal relay service toll- correct. Dated at Rockville, Maryland this 16th day free at 800–877–8339 and ask to be PBGC also intends to update the of December 2020. connected to 202–229–6563.) premium rates and make conforming, [FR Doc. 2020–28160 Filed 12–21–20; 8:45 am] SUPPLEMENTARY INFORMATION: Section clarifying, and editorial changes. One BILLING CODE 7590–01–P 4007 of title IV of the Employee such change, to conform with the Retirement Income Security Act of 1974 Setting Every Community Up for (ERISA) requires pension plans covered Retirement Enhancement (SECURE) Act under title IV pension insurance of 2019, is adding the option of ‘‘CSEC

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plan’’ (meaning cooperative and small- Fellows on how their placements are currently appearing on the market employer charity plan) as a response to going and discuss preparation for future dominant or the competitive product the question of ‘‘Plan type.’’ events. list. The collection of information under President’s Commission on White Section II identifies the docket the regulation has been approved House Fellowships. number(s) associated with each Postal through December 21, 2022, by OMB Service request, the title of each Postal Alexys Stanley, under control number 1212–0009. On Service request, the request’s acceptance August 21, 2020, PBGC published in the Regulatory Affairs Director. date, and the authority cited by the Federal Register (at 85 FR 51759) a [FR Doc. 2020–28144 Filed 12–21–20; 8:45 am] Postal Service for each request. For each notice informing the public of its intent BILLING CODE 6325–44–P request, the Commission appoints an to request approval of the revised officer of the Commission to represent collection of information. PBGC did not the interests of the general public in the receive any comments. An agency may POSTAL REGULATORY COMMISSION proceeding, pursuant to 39 U.S.C. 505 not conduct or sponsor, and a person is (Public Representative). Section II also [Docket Nos. CP2019–198; CP2019–199; not required to respond to, a collection CP2020–141; CP2020–184; CP2020–189; establishes comment deadline(s) of information unless it displays a CP2020–192; CP2020–193; MC2021–48 and pertaining to each request. currently valid OMB control number. CP2021–50] The public portions of the Postal PBGC estimates that it will receive Service’s request(s) can be accessed via 31,245 premium filings per year from New Postal Products the Commission’s website (http:// 31,245 plan administrators under this www.prc.gov). Non-public portions of collection of information. PBGC further AGENCY: Postal Regulatory Commission. the Postal Service’s request(s), if any, estimates that the annual burden of this ACTION: Notice. can be accessed through compliance collection of information is 13,540 with the requirements of 39 CFR SUMMARY: The Commission is noticing a hours and $21,621,540. 3011.301.1 recent Postal Service filing for the Issued in Washington, DC, by. The Commission invites comments on Commission’s consideration concerning whether the Postal Service’s request(s) Stephanie Cibinic, a negotiated service agreement. This in the captioned docket(s) are consistent Deputy Assistant General Counsel for notice informs the public of the filing, with the policies of title 39. For Regulatory Affairs, Pension Benefit Guaranty invites public comment, and takes other Corporation. request(s) that the Postal Service states administrative steps. concern market dominant product(s), [FR Doc. 2020–28193 Filed 12–21–20; 8:45 am] DATES: Comments are due: December applicable statutory and regulatory BILLING CODE 7709–02–P 28, 2020 and December 29, 2020. requirements include 39 U.S.C. 3622, 39 ADDRESSES: Submit comments U.S.C. 3642, 39 CFR part 3030, and 39 electronically via the Commission’s CFR part 3040, subpart B. For request(s) OFFICE OF PERSONNEL Filing Online system at http:// that the Postal Service states concern MANAGEMENT www.prc.gov. Those who cannot submit competitive product(s), applicable President’s Commission on White comments electronically should contact statutory and regulatory requirements FOR FURTHER House Fellowships Advisory the person identified in the include 39 U.S.C. 3632, 39 U.S.C. 3633, Committee: Closed Meeting INFORMATION CONTACT section by 39 U.S.C. 3642, 39 CFR part 3035, and telephone for advice on filing 39 CFR part 3040, subpart B. Comment AGENCY: President’s Commission on alternatives. deadline(s) for each request appear in White House Fellowships, Office of FOR FURTHER INFORMATION CONTACT: section II. Personnel Management. David A. Trissell, General Counsel, at 1. Docket No(s).: CP2019–198; Filing ACTION: Notice of meeting. 202–789–6820. Title: USPS Notice of Amendment to Priority Mail Contract 543, Filed Under SUPPLEMENTARY INFORMATION: SUMMARY: The President’s Commission The Seal; Filing Acceptance Date: December on White House Fellowships (PCWHF) December 28, 2020 comment due date 16, 2020; Filing Authority: 39 CFR was established by an Executive Order applies to Docket Nos. CP2019–198; 3035.105; Public Representative: in 1964. The PCWHF is an advisory CP2019–199; CP2020–141; CP2020–184; Christopher C. Mohr; Comments Due: committee composed of Special CP2020–189. December 28, 2020. Government Employees appointed by The December 29, 2020 comment due 2. Docket No(s).: CP2019–199; Filing the President. date applies to Docket Nos. CP2020– Title: USPS Notice of Amendment to 192; CP2020–193; MC2021–48 and FOR FURTHER INFORMATION CONTACT: Priority Mail Contract 544, Filed Under CP2021–50. Elizabeth D. Pinkerton, 712 Jackson Seal; Filing Acceptance Date: December Place NW, Washington, DC 20503, Table of Contents 16, 2020; Filing Authority: 39 CFR Phone: 202–395–4522. 3035.105; Public Representative: I. Introduction Christopher C. Mohr; Comments Due: SUPPLEMENTARY INFORMATION: II. Docketed Proceeding(s) The meeting is closed. December 28, 2020. Name of Committee: President’s I. Introduction 3. Docket No(s).: CP2020–141; Filing Commission on White House The Commission gives notice that the Title: Notice of the United States Postal Fellowships Mid-Year Meeting. Postal Service filed request(s) for the Service of Filing Modifications to Date: January 4–5, 2021. Commission to consider matters related Inbound Competitive Multi-Service Time: 8:00 a.m.–5:30 p.m. to negotiated service agreement(s). The IRA–USPS Agreement; Filing Place Eisenhower Executive Office request(s) may propose the addition or Acceptance Date: December 16, 2020; Building, 1650 Pennsylvania Ave. NW, removal of a negotiated service 1 See Docket No. RM2018–3, Order Adopting Washington, DC 20502. agreement from the market dominant or Final Rules Relating to Non-Public Information, Agenda: The Commission holds a the competitive product list, or the June 27, 2018, Attachment A at 19–22 (Order No. mid-year meeting to talk with current modification of an existing product 4679).

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Filing Authority: 39 CFR 3035.105; Christopher C. Mohr; Comments Due: 503), amended by the Privacy Act of Public Representative: Katalin K. December 29, 2020. 1974, (5 U.S.C. 552a) as amended, Clendenin; Comments Due: December This Notice will be published in the requires a Federal agency participating 28, 2020. Federal Register. in a computer matching program to 4. Docket No(s).: CP2020–184; Filing Erica A. Barker, publish a notice in the Federal Register for all matching programs. Title: Notice of the United States Postal Secretary. Service of Filing Modification One to The Privacy Act, as amended, International Priority Airmail, [FR Doc. 2020–28256 Filed 12–21–20; 8:45 am] regulates the use of computer matching Commercial ePacket, Priority Mail BILLING CODE 7710–FW–P by Federal agencies when records Express International, Priority Mail contained in a Privacy Act System of International & First-Class Package Records are matched with other Federal, International Service Contract 2 RAILROAD RETIREMENT BOARD State, or local government records. It requires Federal agencies involved in Negotiated Service Agreement; Filing Privacy Act of 1974, as Amended; computer matching programs to: Acceptance Date: December 16, 2020; Notice of Computer Matching Program (1) Negotiate written agreements with Filing Authority: 39 CFR 3035.105; (Railroad Retirement Board and Social the other agency or agencies Public Representative: Gregory S. Security Administration, Match participating in the matching programs; Stanton; Comments Due: December 28, Number 1007) 2020. (2) Obtain the approval of the 5. Docket No(s).: CP2020–189; Filing AGENCY: Railroad Retirement Board matching agreement by the Data Title: Notice of the United States Postal (RRB). Integrity Boards (DIB) of the Service of Filing Modification Two to ACTION: Notice of a modified matching participating Federal agencies; International Priority Airmail, program. (3) Publish notice of the computer Commercial ePacket, Priority Mail matching program in the Federal Express International, Priority Mail SUMMARY: As required by the Privacy Register; International & First-Class Package Act of 1974, as amended, the RRB is (4) Furnish detailed reports about International Service Contract 5 issuing public notice of its renewal of an matching programs to Congress and Negotiated Service Agreement; Filing ongoing computer-matching program OMB; Acceptance Date: December 16, 2020; with the Social Security Administration (5) Notify applicants and beneficiaries Filing Authority: 39 CFR 3035.105; (SSA). The purpose of this notice is to that their records are subject to Public Representative: Kenneth R. advise individuals applying for or matching; and Moeller; Comments Due: December 28, receiving benefits under the Railroad (6) Verify match findings before 2020. Retirement Act of the use made by RRB reducing, suspending, terminating, or 6. Docket No(s).: CP2020–192; Filing of this information obtained from SSA denying a person’s benefits or Title: Notice of the United States Postal by means of a computer match. The RRB payments. The last notice for this Service of Filing Modification One to is also issuing public notice, on behalf matching program was published at 73 International Priority Airmail, of the SSA, of their intent to conduct a FR 31516–31517 (June 2, 2008). B. RRB Computer Matches Subject to Commercial ePacket, Priority Mail computer-matching program based on the Privacy Act Express International, Priority Mail information provided to them by the We have taken appropriate action to International & First-Class Package RRB. ensure that all of our computer International Service with Reseller DATES: This matching program becomes matching programs comply with the Contract 2 Negotiated Service effective as proposed without further requirements of the Privacy Act, as Agreement; Filing Acceptance Date: notice on January 21, 2021. We will file amended. December 16, 2020; Filing Authority: 39 a report of this computer-matching CFR 3035.105; Public Representative: program with the Committee on Participating Agencies Kenneth R. Moeller; Comments Due: Homeland Security and Governmental Railroad Retirement Board (RRB) and December 29, 2020. Affairs of the Senate; the Committee on the Social Security Administration 7. Docket No(s).: CP2020–193; Filing Oversight and Government Reform of (SSA), Match #1007. Title: Notice of the United States Postal the House of Representatives; and the Service of Filing Modification One to Office of Information and Regulatory Authority for Conducting the Matching Priority Mail Express International, Affairs, Office of Management and Program Priority Mail International, First-Class Budget (OMB). Section 7(b)(7) of the Railroad Package International Service & ADDRESSES: Interested parties may Retirement Act (45 U.S.C. 231f(b)(7)) Commercial ePacket Contract 5 comment on this publication by writing provides that the Social Security Negotiated Service Agreement; Filing to Ms. Stephanie Hillyard, Secretary to Administration shall supply Acceptance Date: December 16, 2020; the Board, Railroad Retirement Board, information necessary to administer the Filing Authority: 39 CFR 3035.105; 844 North Rush Street, Chicago, Illinois Railroad Retirement Act. Sections 202, Public Representative: Kenneth R. 60611–2092. 205(o) and 215(f) of the Social Security Moeller; Comments Due: December 29, FOR FURTHER INFORMATION CONTACT: Mr. Act (42 U.S.C. 402, 405(o) and 415(f)) 2020. Timothy Grant, Associate Chief relate to benefit provisions, inclusion of 8. Docket No(s).: MC2021–48 and Information Officer, Railroad Retirement railroad compensation together with CP2021–50; Filing Title: USPS Request Board, 844 North Rush Street, Chicago, wages for payment of benefits under to Add Priority Mail Contract 684 to Illinois 60611–2092, telephone 312– certain circumstances, and the re- Competitive Product List and Notice of 751–4869 or email at [email protected]. computation of benefits. Filing Materials Under Seal; Filing SUPPLEMENTARY INFORMATION: Acceptance Date: December 16, 2020; Purpose Filing Authority: 39 U.S.C. 3642, 39 CFR A. General The RRB will, on a daily basis, obtain 3040.130 through 3040.135, and 39 CFR The Computer Matching and Privacy from SSA a record of the wages reported 3035.105; Public Representative: Protection Act of 1988, (Pub. L. 100– to SSA for persons who have applied for

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benefits under the Railroad Retirement under the Railroad Retirement Act be Compensation, September 30, 2014 Act and a record of the amount of considered as wages under the Social (79 FR 58877) benefits paid by that agency to persons Security Act for the purposes of 2. RRB–22, Railroad Retirement, who are receiving or have applied for determining entitlement under the Survivor, Pensioner Benefit System, benefits under the Railroad Retirement Social Security Act if the person has May 15, 2015 (80 FR 28018) Act. The wage information is needed to less than 10 years of railroad service or compute the amount of the tier I annuity has 10 or more years of service but does The applicable SSA Privacy Act component provided by sections 3(a), not have a current connection with the Systems of Records used and their 4(a) and 4(f) of the Railroad Retirement railroad industry at the time of his/her Federal Register citation used in the Act (45 U.S.C. 231b(a), 45 U.S.C. 231c(a) death. matching program are: and 45 U.S.C. 231c(f)). The benefit Categories of Individuals information is needed to adjust the tier 1. SSA 60–0058, Master Files of Social I annuity component for the receipt of All applicants for benefits under the Security Number (SSN) Holders and the Social Security benefit. This Railroad Retirement Act and current SSN Applications (the Enumeration information is available from no other beneficiaries will have a record of any System); 75 FR 82121 (December source. social security wages and the amount of 29, 2010) Second, the RRB will receive from any social security benefits furnished to 2. SSA/OS, 60–0059, Earnings the RRB by SSA. In addition, all persons SSA the amount of certain social Recording and Self-Employment who ever worked in the railroad security benefits which the RRB pays on Income System (MEF); 71 FR 1819 behalf of SSA. Section 7(b)(2) of the industry after 1936 will have a record of (January 11, 2006) Railroad Retirement Act (45 U.S.C. their service and compensation 231f(b)(2)) provides that the RRB shall furnished to SSA by RRB. 3. SSA/ORSIS 60–0090, Master Beneficiary Record (MBR); 71 FR make the payment of certain social Categories of Records security benefits. The RRB also requires 1826 (January 11, 2006) 1. Name, social security number, RRB this information in order to adjust the 4. SSA/ODISSIS 60–103, Supplemental claim number, annuity beginning date, amount of any annuity due to the Security Income Record and Special receipt of a social security benefit. date of birth, sex, last employer identification number, amount of daily Veteran Benefits; 71 FR 1830 Section 10(a) of the Railroad Retirement (January 11, 2006) Act (45 U.S.C. 231i(a)) permits the RRB pay rate, separation allowance or to recover any overpayment from the severance payment, creditable service 5. SSA/OPB 60–0269, Prisoner Update accrual of social security benefits. This and compensation after 1937, home Processing System (PUPS); 64 FR information is not available from any address, date of death, and electronic 11076 (March 8, 1999) mail address. other source. This matching program will become Third, once a year the RRB will 2. Information pertaining to the effective January 19, 2021 or 40 days receive from SSA a copy of SSA’s payment or denial of an individual’s after a copy of the agreement, as Master Benefit Record for earmarked claim for benefits under the Railroad RRB annuitants. Section 7(b)(7)) of the Retirement Act: Name, address, social approved by the Data Integrity Board of Railroad Retirement Act (45 U.S.C. security number, claim number, proofs each agency, is sent to Congress and the 231f(b)(7)) requires that SSA provide the of age, marriage, relationship, death, Office of Management and Budget, or 30 requested information. The RRB needs military service, creditable earnings and days after publication of this notice in this information to make the necessary service months (including military the Federal Register, whichever date is cost-of-living computation adjustments service), entitlement to benefits under latest. The matching program will quickly and accurately for those RRB the Social Security Act, programs continue for 18 months after the annuitants who are also SSA administered by the Veterans effective date and may be extended for beneficiaries. Administration, or other benefit an additional 12 months, if the SSA will receive weekly from RRB systems, rates, effective dates, medical conditions specified in 5 U.S.C. earnings information for all railroad reports, correspondence and telephone 552a(o)(2)(D) have been met. This employees. SSA will match the inquiries to and about the beneficiary, matching program expires on January identifying information of the records suspension and termination dates, 19, 2022. furnished by the RRB against the health insurance effective date, option, identifying information contained in its premium rate and deduction, direct By authority of the Board. Master Benefit Record and its Master deposit data, employer pension Stephanie Hillyard, Earnings File. If there is a match, SSA information, citizenship status and legal Secretary to the Board. will use the RRB earnings to adjust the residency status (for annuitants living [FR Doc. 2020–28214 Filed 12–21–20; 8:45 am] amount of Social Security benefits in its outside the United States), and tax BILLING CODE 7905–01–P Annual Earnings Reappraisal Operation. withholding information (instructions of This information is available from no annuitants regarding number of other source. exemptions claimed and additional The SSA will also receive daily from amounts to be withheld, as well as RRB earnings information on selected actual amounts withheld for tax individuals. The transfer of information purposes). may be initiated either by RRB or by SSA. SSA needs this information to Systems of Records determine eligibility to Social Security The applicable RRB Privacy Act benefits and, if eligibility is met, to Systems of Records and their Federal determine the benefit amount payable. Register citation used in the matching Section 18 of the Railroad Retirement program are: Act (45 U.S.C. 231q(2)) requires that 1. RRB–5, Master File of Railroad earnings considered as compensation Employees’ Creditable

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SECURITIES AND EXCHANGE specified terms and conditions, any self- towards meeting these CAT NMS Plan COMMISSION regulatory organization, member requirements. Section 6.6(c)(ii)(B) of the thereof, or specified security, if the CAT NMS Plan requires that for each [Release No. 34–90688] Commission determines that such ‘‘milestone’’ still in progress at the end Order Granting Temporary Conditional exemption is consistent with the public of a given calendar quarter, the Exemptive Relief Pursuant to Section interest, the protection of investors, the Participants must submit, among other 36 of the Securities Exchange Act of maintenance of fair and orderly markets things, a description of ‘‘any other 1934 (‘‘Exchange Act’’) and Rule 608(e) and the removal of impediments to, and factual indicators that demonstrate the of Regulation NMS Under the perfection of the mechanism of, a current level of completion with respect Exchange Act, Relating to Certain national market system.’’ 4 to the milestone.’’ As a condition of the Requirements of the National Market For the reasons set forth below, this exemptive relief granted in this Order, System Plan Governing the Order grants the Participants temporary the Participants are required to include Consolidated Audit Trail conditional exemptive relief from a description of specific factual certain requirements of the CAT NMS indicators that demonstrate the current December 16, 2020. Plan, until the dates specified below. level of completion with respect to the I. Introduction The Commission is granting temporary ‘‘Full Implementation of CAT NMS Plan conditional exemptive relief from Requirements’’ milestone 7 within the BOX Exchange LLC, Cboe BYX certain CAT NMS Plan requirements in Quarterly Progress Reports required by Exchange, Inc., Cboe BZX Exchange, order to allow Participants more time to the CAT NMS Plan. These factual Inc., Cboe EDGA Exchange, Inc., Cboe meet such requirements and to allow indicators, as they apply to each CAT EDGX Exchange, Inc., Cboe C2 Participants to prioritize and focus NMS Plan requirement, are discussed in Exchange, Inc., Cboe Exchange, Inc., resources on implementation of other greater detail below. Financial Industry Regulatory outstanding CAT NMS Plan A. Timeframes for Lifecycle Linkages Authority, Inc., Investors Exchange LLC, requirements. MEMX LLC, Miami International The CAT NMS Plan requires specific Securities Exchange LLC, MIAX II. Discussion and Exemptive Relief timeframes for the identification, Emerald, LLC, MIAX PEARL, LLC, Participants and Industry Members communication and correction of errors NASDAQ BX, LLC, Nasdaq GEMX, LLC, have devoted and continue to expend from the time an order event is received Nasdaq ISE, LLC, Nasdaq MRX, LLC, substantial resources and efforts in the by the processor, including, by Noon NASDAQ PHLX LLC, The NASDAQ ongoing development of the CAT. The Eastern Time T+1 (transaction date + Stock Market LLC, New York Stock Commission believes that granting the one day), ‘‘[i]nitial data validation, Exchange LLC, NYSE American LLC, temporary exemptive relief until July lifecycle linkages and communication of NYSE Arca, Inc., NYSE Chicago, Inc., 31, 2023,5 except where otherwise noted errors to CAT Reporters.’’ 8 This means NYSE National, Inc., and Long Term below, would provide Participants the that by 12pm EST the day after a Stock Exchange, Inc. (collectively, the time to develop the necessary transaction, the Plan Processor must ‘‘Participants’’ or ‘‘SROs’’) are technological, system or procedural have completed initial data validation, responsible for implementing the changes to meet the CAT NMS Plan made lifecycle linkages (i.e., completed National Market System Plan Governing requirements discussed below. The processing and linkage of the initial the Consolidated Audit Trail (‘‘CAT Commission believes that granting transaction data) and communicated 1 NMS Plan’’). When fully implemented, temporary conditional exemptive relief errors to CAT Reporters. However, the the consolidated audit trail (‘‘CAT’’) is from specific CAT NMS Plan Commission understands that the Plan designed to capture customer and order requirements as discussed below is, Processor is currently unable to event information for Eligible pursuant to Section 36 of the Exchange establish lifecycle linkages by the noon 2 Securities across all markets, from the Act, appropriate in the public interest EST T+1 deadline as required by the time of order inception through routing, and consistent with the protection of CAT NMS Plan, but the Plan Processor cancellation, modification, or execution investors, and that pursuant to Rule does have the ability to provide an in a single, consolidated data source. 608(e), this exemptive relief is interim CAT Order ID and lifecycle Section 36 of the Exchange Act grants consistent with the public interest, the linkages by 9 p.m. EST T+1. To allow the Commission the authority, with protection of investors, the maintenance certain limitations, to ‘‘conditionally or of fair and orderly markets and the towards implementing the CAT NMS Plan unconditionally exempt any person, requirements). See also Securities Exchange Act removal of impediments to, and the Release No. 88890 (May 15, 2020), 85 FR 31322 security, or transaction . . . from any perfection of a national market system. provision or provisions of [the Exchange (May 22, 2020). In addition to the conditions specific 7 See CAT NMS Plan at Section 1.1 (defining Act] or of any rule or regulation to the exemptive relief described below, ‘‘Full Implementation of CAT NMS Plan thereunder, to the extent that such Requirements’’ milestone). The Commission the Commission is granting the believes that these factual indicators relate to the exemption is necessary or appropriate exemptive relief described herein in the public interest, and is consistent Full Implementation of CAT NMS Plan Requirements milestone because this milestone 3 conditioned on the Participants with the protection of investors.’’ providing information in Quarterly ‘‘means the point at which Participants have Under Rule 608(e) of Regulation NMS, satisfied all of their obligations to build and Progress Reports 6 regarding the progress the Commission may ‘‘exempt from implement the CAT, such that all CAT system [Rule 608], either unconditionally or on functionality required by Rule 613 and the CAT 4 17 CFR 242.608(e). NMS plan has been developed, successfully tested 5 This date is approximately one year after the and fully implemented[.]’’ Id. 1 The CAT NMS Plan was approved by the date by which the Participants previously estimated 8 See CAT NMS Plan at Section 6.1 of Appendix Commission, as modified, on November 15, 2016. that the CAT would be fully implemented, July 11, D. Section 6.1 of Appendix continues to provide the See Securities Exchange Act Release No. 79318 2022. See Securities Exchange Act Release No. following timelines: (1) ‘‘8:00 a.m. Eastern Time (November 15, 2016), 81 FR 84696 (November 23, 88890 (May 15, 2020), 85 FR 31322, 31334 (May 22, T+3 (transaction date + three days)—Resubmission 2016) (‘‘CAT NMS Plan Approval Order’’). 2020). of corrected data; and’’ (2) ‘‘8:00 a.m. Eastern Time 2 Unless otherwise noted, capitalized terms are 6 See CAT NMS Plan at Section 6.6(c)(ii) T+5 (transaction date + five days)—Corrected data used as defined in the CAT NMS Plan. (requiring Participants to file quarterly progress available to Participant regulatory staff and the 3 15 U.S.C. 78mm(a)(1). reports with the Commission tracking progress SEC.’’

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the Participants more time to make the time to develop the changes necessary that requires the information collected technological changes necessary to meet to handle the re-processing of all by the Central Repository pursuant to the requirements of Section 6.1 of corrections received after T+5, the paragraphs (c)(7) and (e)(7) of SEC Rule Appendix D, the Commission believes it Commission believes it is appropriate to 613 to be provided to regulators in a is appropriate to grant temporary grant temporary exemptive relief, until linked manner, insofar as this provision exemptive relief, until July 31, 2023, July 31, 2021, from the requirement in applies to linking Participant Data and from the requirement that the Section 3 and Section 6.2 of Appendix Industry Member Data with SIP Data as Participants make lifecycle linkages of D of the CAT NMS Plan that the required by Section 6.5(b)(i). As a transaction data available by noon EST Participants process and assemble the condition of this relief, and for purposes T+1. This relief is conditioned on the complete lifecycle for corrected of the Quarterly Progress Reports, Participants providing an interim CAT Reportable Events received by the Plan factual indicators that demonstrate the Order ID and lifecycle linkages by 9 Processor after T+5. As a condition of current level of completion with respect p.m. EST T+1. Furthermore, as a this relief, and for purposes of the to this CAT NMS Plan requirement must condition of this relief, and for purposes Quarterly Progress Reports, factual include the release of updated of the Quarterly Progress Reports, indicators that demonstrate the current specifications and/or scenarios factual indicators that demonstrate the level of completion with respect to this documents relating to the linkage of current level of completion with respect CAT NMS Plan requirement must Participant Data and Industry Member to this CAT NMS Plan requirement must include a description of progress made Data with SIP Data, such that SIP Data include a description of any with respect to the re-processing of all is incorporated in the lifecycle of an improvements to the time by which the corrections received after T+5 prior to order. The Commission believes that Plan Processor is capable of providing the expiration of the exemptive relief on this condition would allow the an interim CAT Order ID and lifecycle July 31, 2021. The Commission believes Commission to monitor the progress linkages. The Commission believes that that this condition would allow the made towards meeting this CAT NMS this condition would allow the Commission to monitor the progress Plan requirement prior to the expiration Commission to monitor the progress made towards meeting this CAT NMS of the exemptive relief. made towards meeting this CAT NMS Plan requirement prior to the expiration D. Reporting of Port-Level Settings Plan requirement prior to the expiration of the exemptive relief. Applicable to Orders of the exemptive relief. C. Linkage of Participant Data and Port-level settings are special B. Re-Processing of Corrections Received Industry Member Data With SIP Data handling instructions associated with a After T+5 Section 6.5(b)(i) of the CAT NMS Plan port connection to another Industry Section 3 of Appendix D of the CAT requires, among other things, that the Member or Participant and are used by NMS Plan requires that all CAT Data CAT Data and data from the Securities Industry Members and Participants to reported to the Central Repository must Information Processor (the ‘‘SIP’’) that is instruct how to handle an Order (e.g., be processed and assembled to create collected by the Central Repository certain routing instructions) that are the complete lifecycle of each (‘‘SIP Data’’) when available to the sent through that port connection. The Reportable Event.9 Furthermore, Section Participant regulatory staff and the SEC CAT NMS Plan requires Industry 6.2 of Appendix D of the CAT NMS Plan ‘‘shall be linked,’’ such that the Members to report the ‘‘Material Terms states that if corrections are received Participant and Industry Member Data of an Order,’’ including ‘‘any special after T+5 (transaction date + 5 days), (‘‘Transaction Data’’) collected by CAT handling instructions’’ 11 to the Central Participants’ regulatory staff and the and the SIP Data collected by CAT are Repository for certain events in an SEC must be notified and informed as part of the lifecycle of a single Order.10 Order’s lifecycle.12 The Commission to how re-processing will be completed. However, the Commission understands believes that the CAT NMS Plan’s The Commission understands that the that the CAT Plan Processor is unable to requirement to report ‘‘Material Terms Participants believe that re-processing ‘‘link’’ Participant Data and Industry of an Order’’ including ‘‘any special data for corrections made after T+5 Member Data with SIP Data as required handling instructions’’ requires the could negatively impact current by Section 6.5(b)(i) of the CAT NMS reporting of port-level settings because development timelines and thus impede Plan. Rather, the Commission port-level settings provide instructions regulatory use of CAT Data, and that understands that the CAT Plan on how orders should be handled.13 Put Section 3 of Appendix D does not Processor is only able to provide a another way, port-level settings are require the re-processing of all data regulatory user a side-by-side view of— special handling instructions, and corrections made after T+5, but that the instead of a linkage between—both the therefore these settings must be Participants do plan to establish transactional data in CAT and SIP Data reported, consistent with the two-sided procedures to identify when and how through an online targeted query tool or reporting obligations of CAT, by both such data will be re-processed. a user-defined direct query. the sender and receiver. For example, an However, under the CAT NMS Plan, In order to provide Participants more instruction that prevents an order from corrections received after T+5 are time to develop the changes necessary trading with another order from the required to be re-processed, with the to meet the requirements of Section same broker-dealer (self-trade match Participants’ regulatory staff and SEC 6.5(b)(i), the Commission believes it is notified and informed as to how re- appropriate to, until July 31, 2023, grant 11 See CAT NMS Plan at Section 1.1. processing will be completed; it does a temporary exemption to the 12 See CAT NMS Plan at Sections 1.1 and not provide that re-processing is Participants from the requirement in 6.4(d)(i), (ii), (iii), and (iv). 13 CAT NMS FAQ (D34) regarding the optional. To provide the Participants Section 6.5(b)(i) of the CAT NMS Plan requirement to report material terms of an order that are communicated via default or implicit 9 See, e.g., CAT NMS Plan, supra note 1, at 10 Section 3 of Appendix D of the CAT NMS Plan handling instructions states that generally, the party Section 3 of Appendix D. Pursuant to Section 6.1 requires that ‘‘[a]ll CAT Data reported to the Central who ‘‘applies’’ the default or implicit handling of Appendix D, the Plan Processor is required to Repository must be processed and assembled to instruction to the order is required to report any made available corrected data to Participant create the complete lifecycle of each Reportable material terms in that instruction to CAT. See CAT regulatory staff and the SEC at 8:00 a.m. EST five Event,’’ and ‘‘CAT Data’’ explicitly includes ‘‘SIP NMS FAQ D34, available at: https:// days after a transaction date. Data.’’ www.catnmsplan.com/faq.

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prevention) is reportable as a special Commission understands that the demonstrate the current level of handling instruction even if the Participants do not currently have the completion with respect to this CAT exchange does not need to apply the ability to create lifecycles in certain NMS Plan requirement must include a instruction because there is not another representative order scenarios, description of progress made regarding order from the same broker-dealer that particularly because of the difficulty of the release of updated specifications would trade with the incoming order. linking representative orders for and/or scenarios documents relating to The Commission understands, Industry Members with separate order the reporting of all representative however, that Participants and/or management systems and execution orders. The Commission believes that Industry Members would have to make management systems that do not this condition would allow the technological changes to ensure the currently have a systematic or direct Commission to monitor the progress accurate and reliable reporting of port- link between them.15 While the made towards meeting this CAT NMS level settings, and therefore, the Commission has granted exemptive Plan requirement prior to the expiration Commission believes it is appropriate relief relating to the timing of CAT NMS of the exemptive relief. to, until July 31, 2023, exempt the Plan reporting requirements for Industry F. Participant Reporting of Rejected Participants from requiring that both the Members,16 including the phased Orders CAT Reporter sending an Order and the reporting of representative orders, the CAT Reporter receiving an Order report exemptive relief that was granted relates The CAT NMS Plan requires port-level settings as part of the Material solely to the timing and phasing of Participants to record and report to the Terms of an Order. In order to monitor reporting and not the substantive Central Repository the receipt of an the Participants’ progress on compliance requirements of the CAT NMS Plan.17 order and the time at which the order with the CAT NMS Plan’s reporting In order to allow time for Participants is received pursuant to Section 6.3(d) of requirements, this exemptive relief is and Industry Members to develop the the CAT NMS Plan. This requirement conditioned on the Participants capability of meeting CAT NMS Plan applies to when an order is received, engaging both the Commission and requirements relating to representative which means that an order that a Industry Members on a plan to address orders, the Commission believes it is Participant receives, but then rejects the reporting of port-level settings on an appropriate to grant temporary (‘‘rejected orders’’) is a CAT Reportable exchange-by-exchange basis. exemptive relief, until July 31, 2023, event, and that the receipt of that order Furthermore, as a condition of this from the CAT NMS Plan requirement and the time at which that order was relief, and for purposes of the Quarterly that the Plan Processor create the received also must be reported, Progress Reports, factual indicators lifecycle between customer orders to pursuant to Section 6.3(d). Additionally, must include the release of updated ‘‘representative’’ orders created in firm similar to all other CAT Data, rejected specifications and/or scenarios accounts for the purpose of facilitating orders that are reported to the Central documents relating to the reporting of a customer order, conditioned on the Repository must be processed and Participants continuing to require assembled to create the complete port-level settings by both the sender 18 and receiver of an Order as a special Industry Member reporting of lifecycle of each Reportable Event. handling instruction to demonstrate the representative orders as described in the However, the Commission understands current level of completion with respect Phased Industry Member Reporting that the Participants are currently only to the CAT NMS Plan requirement that Order. The Commission believes that able to report some but not all rejected special handling instructions, including granting relief until July 31, 2023 is orders, as required by Section 6.3(d). In order to provide Participants more port-level settings, be reported as appropriate because this would provide time to develop the changes necessary Material Terms of an Order. The Participants the time necessary to determine how all representative orders to meet the requirements of Section Commission believes that these 6.3(d) of the CAT NMS Plan as they conditions would allow the Commission are to be reported to CAT and time for Industry Members to make any changes relate to rejected orders, the to monitor the progress made towards Commission believes it is appropriate meeting this CAT NMS Plan necessary to report all representative orders. As a condition of this relief, and to, until December 13, 2021, grant a requirement prior to the expiration of temporary exemption to the Participants the exemptive relief. for purposes of the Quarterly Progress Reports, factual indicators that from the requirement in Section 6.3(d) E. Lifecycle Linkage Between Customer of the CAT NMS Plan that requires the 19 Orders and ‘‘Representative’’ Orders principal, agency average price and omnibus Participants to report rejected orders. accounts, by an Industry Member for the purpose As a condition to this relief, and for The CAT NMS Plan requires that the of working one or more customer or client orders. Plan Processor must be able to link all purposes of the Quarterly Progress See Securities Exchange Act Release No. 88702 Reports, factual indicators that related order events from all CAT (April 20, 2020), 85 FR 23075, 23076 n.26 (April 24, demonstrate the current level of Reporters involved in the lifecycle of an 2020) (‘‘Phased Industry Member Reporting completion with respect to this CAT order, and this requirement applies to, Order’’). 15 See Industry Member Specifications, FINRA NMS Plan requirement must include a among other things, ‘‘representative’’ CAT, available at: https://www.catnmsplan.com/ description of any updates to orders. Specifically, the CAT NMS Plan specifications/im. specifications and/or scenarios states that the Central Repository must 16 In the Phased Industry Member Reporting documents relating to the capture and be able to create the lifecycle between Order, see supra note 14, the Commission granted customer orders to ‘‘representative’’ exemptive relief from requirements in Sections 6.4, 6.7(a)(v) and 6.7(a)(vi) of the CAT NMS Plan related 18 See CAT NMS Plan at Appendix D, Section 3. orders created in firm accounts for the to Industry Member reporting of Industry Member 19 The Commission understands that Industry purpose of facilitating a customer order Data to the Central Repository. Member Specifications accommodates the reporting (e.g., linking a customer order handled 17 As a condition to the exemptive relief granted of rejected orders through ‘‘New Order Event’’ on a riskless principal basis to the in the Phased Industry Member Reporting Order, reporting, and that if an Industry Member receives 14 the Participants represented that the full scope of an order, the Industry Member must report the street-side proprietary order). The CAT Data will be required to be reported to the CAT receipt of the order and time of order receipt. See when Phase 2e has been implemented (by July 11, FINRA CAT, Industry Member Specifications, 14 See CAT NMS Plan at Section 3, Appendix D. 2022), subject to any applicable exemptive relief or available at: https://www.catnmsplan.com/ A representative order is an order originated in a amendments to the CAT NMS Plan. See id. at specifications/im; FINRA CAT, FAQ D3, available firm owned or controlled account, including 23076, 23079, 23080, 23081, 23083. at: https://www.catnmsplan.com/faq.

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reporting of rejected orders. The orders, until December 13, 2021, subject are securities issued by an actively Commission believes that this condition to the conditions described above. managed open-end management 4 would allow the Commission to monitor By the Commission. investment company. The Exchange is the progress made towards meeting this J. Matthew DeLesDernier, submitting this proposal as required by Rule 14.11(m)(2)(A), which provides CAT NMS Plan requirement prior to the Assistant Secretary. expiration of the exemptive relief. that the Exchange must file separate [FR Doc. 2020–28146 Filed 12–21–20; 8:45 am] proposals under Section 19(b) of the Act III. Conclusion BILLING CODE 8011–01–P before listing and trading of a series of For the reasons discussed above, the Tracking Fund Shares. The text of the proposed rule change Commission believes that granting SECURITIES AND EXCHANGE is also available on the Exchange’s temporary exemptive relief, pursuant to COMMISSION website (http://markets.cboe.com/us/ Section 36 of the Exchange Act, is [Release No. 34–90684; File No. SR– equities/regulation/rule_filings/bzx/), at appropriate in the public interest and CboeBZX–2020–091] the Exchange’s Office of the Secretary, consistent with the protection of and at the Commission’s Public investors, and that pursuant to Rule Self-Regulatory Organizations; Cboe Reference Room. 608(e), granting temporary exemptive BZX Exchange, Inc.; Notice of Filing relief is consistent with the public and Immediate Effectiveness of a II. Self-Regulatory Organization’s interest, the protection of investors, the Proposed Rule Change To List and Statement of the Purpose of, and maintenance of fair and orderly markets Trade Shares of the Invesco Focused Statutory Basis for, the Proposed Rule and the removal of impediments to, and Discovery Growth ETF and the Invesco Change the perfection of a national market Select Growth ETF, Each a Series of In its filing with the Commission, the system. the Invesco Actively Managed Exchange included statements Accordingly, it is hereby ordered, Exchange-Traded Fund Trust, Under concerning the purpose of and basis for pursuant to Section 36(a)(1) of the Rule 14.11(m) (Tracking Fund Shares) the proposed rule change and discussed 20 any comments it received on the Exchange Act, and Rule 608(e) of the December 16, 2020. proposed rule change. The text of these Exchange Act 21 that the Participants are Pursuant to Section 19(b)(1) of the statements may be examined at the granted an exemption, from: (1) The Securities Exchange Act of 1934 (the places specified in Item IV below. The requirement in Section 6.1 of Appendix ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange has prepared summaries, set D of the CAT NMS Plan that requires notice is hereby given that on December forth in sections A, B, and C below, of Participants to make lifecycle linkages 14, 2020, Cboe BZX Exchange, Inc. (the the most significant aspects of such of transaction data available by noon ‘‘Exchange’’ or ‘‘BZX’’) filed with the statements. EST T+1, until July 31, 2023; (2) the Securities and Exchange Commission requirement in Sections 3 and 6.2 of (the ‘‘Commission’’) the proposed rule A. Self-Regulatory Organization’s Appendix D of the CAT NMS Plan that change as described in Items I and II Statement of the Purpose of, and the Participants process and assemble below, which Items have been prepared Statutory Basis for, the Proposed Rule the complete lifecycle for corrected by the Exchange. The Commission is Change publishing this notice to solicit Reportable Events received by the Plan 1. Purpose Processor made after T+5, until July 31, comments on the proposed rule change 2021; (3) the requirement in Section from interested persons. The Exchange proposes to list and 6(b)(i) of the CAT NMS Plan that trade shares of the Invesco Focused I. Self-Regulatory Organization’s Discovery Growth ETF and the Invesco requires the Participants to ensure that Statement of the Terms of Substance of information collected pursuant to Select Growth ETF pursuant to Rule the Proposed Rule Change 5 paragraphs (c)(7) and (e)(7) of SEC Rule 14.11(m), Tracking Fund Shares, which 613 shall be linked when made The Exchange proposes to list and are securities issued by an actively available to the Participant regulatory trade shares of the Invesco Focused managed open-end management staff and the SEC, until July 31, 2023; (4) Discovery Growth ETF and the Invesco 4 the requirement in Sections 6.3(d)(i)(F), Select Growth ETF pursuant to Rule Rule 14.11(m) was approved along with the 14.11(m), Tracking Fund Shares,3 which listing and trading of three series of Tracking Fund (ii)(G), (iii)(F), (iv)(E) and 6.4(d)(i) of the Shares by the Commission on May 15, 2020. See Securities Exchange Act Release No. 88887 (May CAT NMS Plan that the Participants 1 report, and amend their Compliance 15 U.S.C. 78s(b)(1). 15, 2020), 85 FR 30990 (May 21, 2020) (the 2 17 CFR 240.19b–4. ‘‘Tracking Fund Shares Approval Order’’). Rules to require Industry Members 3 As defined in Rule 14.11(m)(3)(A), the term 5 As defined in Rule 14.11(m)(3)(A), the term report the Material Terms of an Order ‘‘Tracking Fund Share’’ means a security that: (i) ‘‘Tracking Fund Share’’ means a security that: (i) that are communicated in port-level Represents an interest in an investment company Represents an interest in an investment company settings or instructions, until July 31, (‘‘Investment Company’’) registered under the (‘‘Investment Company’’) registered under the Investment Company Act of 1940 (the ‘‘1940 Act’’) Investment Company Act of 1940 (the ‘‘1940 Act’’) 2023; (5) the requirement in Section 3, organized as an open-end management investment organized as an open-end management investment Appendix D of the CAT NMS Plan that company, that invests in a portfolio of securities company, that invests in a portfolio of securities the Participants create the lifecycle selected by the Investment Company’s investment selected by the Investment Company’s investment adviser consistent with the Investment Company’s adviser consistent with the Investment Company’s between customer orders to investment objectives and policies; (ii) is issued in investment objectives and policies; (ii) is issued in representative orders created in firm a specified aggregate minimum number in return for a specified aggregate minimum number in return for accounts for the purpose of facilitating a deposit of a specified Tracking Basket and/or a a deposit of a specified Tracking Basket and/or a a customer order, until July 31, 2023, cash amount with a value equal to the next cash amount with a value equal to the next determined Net Asset Value (‘‘NAV’’); (iii) when determined Net Asset Value (‘‘NAV’’); (iii) when and (6) the requirement in Section aggregated in the same specified minimum number, aggregated in the same specified minimum number, 6.3(d) of the CAT NMS Plan that may be redeemed at a holder’s request, which may be redeemed at a holder’s request, which requires Participants to report rejected holder will be paid a specified Tracking Basket and/ holder will be paid a specified Tracking Basket and/ or a cash amount with a value equal to the next or a cash amount with a value equal to the next determined NAV; and (iv) the portfolio holdings for determined NAV; and (iv) the portfolio holdings for 20 15 U.S.C. 78mm(a)(1). which are disclosed within at least 60 days which are disclosed within at least 60 days 21 17 CFR 242.608(e). following the end of every fiscal quarter. following the end of every fiscal quarter.

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investment company.6 The Exchange is public information regarding such Exchange. The Exchange will obtain a submitting this proposal as required by portfolio and/or Tracking Basket. The representation from the issuer of the Rule 14.11(m)(2)(A), which provides Funds’ sub-adviser, Invesco Advisers, Shares of each Fund that the NAV per that the Exchange must file separate Inc. (the ‘‘Sub-Adviser’’), is not share of each Fund will be calculated proposals under Section 19(b) of the Act registered as a broker-dealer but is daily 11 and will be made available to all before listing and trading of a series of affiliated with broker-dealers. Sub- market participants at the same time. Tracking Fund Shares. Adviser personnel who make decisions Each Fund’s investments will be The Shares will be offered by the regarding a Fund’s Fund Portfolio and/ consistent with its investment objective Trust, which was organized as a or Tracking Basket or who have access and will not be used to enhance Delaware statutory trust on November 6, to information regarding the Fund leverage. 2007. The Trust is registered with the Portfolio and/or the Tracking Basket or Invesco Focused Discovery Growth ETF Commission as an open-end investment changes thereto are subject to company and has filed a registration procedures designed to prevent the use The Fund’s holdings will conform to statement on behalf of the Funds on and dissemination of material the permissible investments as set forth Form N–1A with the Commission.7 nonpublic information regarding the in the Exemptive Relief and the Invesco Capital Management LLC (the Fund’s portfolio and/or Tracking Basket. holdings will be consistent with all ‘‘Adviser’’) will be the investment In the event that (a) the Adviser or a requirements in the Exemptive Relief.12 adviser to the Funds. The Adviser is not Sub-Adviser becomes registered as a Any foreign common stocks held by the registered as a broker-dealer, but is broker-dealer or newly affiliated with a Fund will be traded on an exchange that affiliated with broker-dealers. The broker-dealer; or (b) any new adviser or is a member of the Intermarket Adviser represents that a fire wall exists sub-adviser is a registered broker-dealer Surveillance Group (‘‘ISG’’) 13 or with and will be maintained between the or becomes newly affiliated with a which the Exchange has in place a respective personnel at the Adviser and broker-dealer; it will implement and comprehensive surveillance sharing affiliated broker-dealers with respect to maintain a fire wall with respect to its agreement. access to information concerning the relevant personnel or such broker-dealer The Fund seeks capital appreciation composition and/or changes to each affiliate, as applicable, regarding access as its investment objective. The Fund Fund’s portfolio and Tracking Basket.8 to information concerning the seeks to achieve its investment objective Personnel who make decisions on a composition and/or changes to the Fund by investing primarily in exchange- Fund’s portfolio composition and/or Portfolio and/or Tracking Basket, and traded common stocks of U.S. Tracking Basket or who have access to will be subject to procedures designed companies that the Sub-Adviser expects nonpublic information regarding the to prevent the use and dissemination of to have above average growth rates. The Fund Portfolio 9 and/or the Tracking material non-public information Fund seeks to invest in newer Basket or changes thereto are subject to regarding such portfolio and/or companies or in more established procedures designed to prevent the use Tracking Basket. Any person or entity, companies that are in the early growth and dissemination of material non- including any service provider for the phase of their business cycle, which is Funds, who has access to nonpublic typically marked by above average 6 Rule 14.11(m) was approved along with the information regarding a Fund Portfolio growth rates. The Fund may invest in listing and trading of three series of Tracking Fund or Tracking Basket or changes thereto securities of issuers of all capitalization Shares by the Commission on May 15, 2020. See for a Fund or Funds will be subject to sizes; however, it will primarily hold Securities Exchange Act Release No. 88887 (May securities of mid-capitalization issuers. 15, 2020), 85 FR 30990 (May 21, 2020) (the procedures designed to prevent the use ‘‘Tracking Fund Shares Approval Order’’). and dissemination of material In selecting investments for the Fund, 7 The Trust is registered under the 1940 Act. On nonpublic information regarding the September 25, 2020, the Trust filed post-effective applicable Fund Portfolio or Tracking 11 The Exemptive Relief and Registration amendments to its registration statement on Form Basket or changes thereto. Further, any Statement provide that the Funds may calculate the N–1A relating to each Fund (File No. 811–22148) NAV per Share more than once daily (e.g., at 12:00 (the ‘‘Registration Statement’’). The descriptions of such person or entity that is registered p.m. ET and 4:00 p.m. ET), however, this proposal the Funds and the Shares contained herein are as a broker-dealer or affiliated with a is not intended to allow the calculation of more based, in part, on information included in the broker-dealer, has erected and will than one NAV. The Exchange will submit and Registration Statement. The Commission has issued maintain a ‘‘fire wall’’ between the receive approval for a separate proposal prior to the an order granting certain exemptive relief to the Funds calculating the NAV per Share more than Trust (the ‘‘Exemptive Relief’’) under the 1940 Act. person or entity and the broker-dealer once daily. See Investment Company Act of 1940 Release No. with respect to access to information 12 Pursuant to the Exemptive Relief, the Fund’s 34127 (December 2, 2020). concerning the composition and/or permissible investments include only the following 8 As defined in Rule 14.11(m)(3)(E), the term changes to such Fund Portfolio or instruments: ETFs, exchange-traded notes, ‘‘Tracking Basket’’ means the identities and Tracking Basket. Each Fund intends to exchange-traded common stocks, common stocks quantities of the securities and other assets listed on a foreign exchange that trade on such included in a basket that is designed to closely track qualify each year as a regulated exchange contemporaneously with the Shares the daily performance of the Fund Portfolio, as investment company under Subchapter (‘‘foreign common stocks’’), exchange-traded provided in the exemptive relief under the 1940 Act M of the Internal Revenue Code of 1986, preferred stocks, exchange-traded American applicable to a series of Tracking Fund Shares. as amended. Depositary Receipts (‘‘ADRs’’), exchange-traded real Although the Exemptive Relief and Registration estate investment trusts, exchange-traded Statement utilize the term ‘‘Substitute Basket,’’ the The Shares will conform to the initial commodity pools, exchange-traded metals trusts, function and purpose of the Substitute Basket is the and continued listing criteria under exchange-traded currency trusts, and exchange- same as contemplated by Rule 14.11(m)(3)(E) (i.e., Rule 14.11(m) as well as all terms in the traded futures that trade contemporaneously with the Substitute Basket is composed of securities and Exemptive Relief. The Exchange the Shares, as well as cash and cash equivalents. other assets included in a basket that is designed With the exception of foreign common stocks and to closely track the daily performance of the Fund represents that, for initial and/or cash and cash equivalents, all holdings of the Fund Portfolio). For ease of reference, the Substitute continued listing, each Fund will be in will be listed on a U.S. national securities exchange. Basket is referred to as a Tracking Basket herein. compliance with Rule 10A–3 under the 13 For a list of the current members of ISG, see 9 As defined in Rule 14.11(m)(3)(B), the term Act.10 A minimum of 100,000 Shares of www.isgportal.com. The Exchange notes that all ‘‘Fund Portfolio’’ means the identities and each Fund will be outstanding at the components, except the cash and cash equivalent quantities of the securities and other assets held by components, of the Funds may trade on markets the Investment Company that will form the basis for commencement of trading on the that are members of ISG or with which the the Investment Company’s calculation of net asset Exchange has in place a comprehensive value at the end of the business day. 10 See 17 CFR 240.10A–3. surveillance sharing agreement.

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the Sub-Adviser looks for companies Exchange, make trading in the Shares Commission,17 the substantive function with high growth potential using a inadvisable. These may include: (i) The of the Tracking Basket is the same. The ‘‘bottom-up’’ stock selection process. extent to which trading is not occurring Tracking Basket will only include The ‘‘bottom-up’’ approach focuses on in the securities and/or the financial securities in which the applicable Fund fundamental analysis of individual instruments composing the Tracking may itself invest. Intraday pricing issuers before considering the impact of Basket or Fund Portfolio; or (ii) whether information for all constituents of the overall economic, market or industry other unusual conditions or Tracking Basket that are exchange- trends. This approach includes analysis circumstances detrimental to the traded, which includes all eligible of a company’s financial statements and maintenance of a fair and orderly instruments except cash and cash management structure and market are present; and (b) if the equivalents, will be available on the consideration of the company’s Exchange becomes aware that one of the exchanges on which they are traded and operations, product development, and following is not being made available to through subscription services. Intraday its industry position. all market participants at the same time: pricing information for cash equivalents the net asset value, the Tracking Basket, will be available through subscription Invesco Select Growth ETF or the Fund Portfolio with respect to a services and/or pricing services. The The Fund’s holdings will conform to series of Tracking Fund Shares, then the Exchange notes that each Fund’s NAV the permissible investments as set forth Exchange will halt trading in such series will form the basis for creations and in the Exemptive Relief and the until such time as the net asset value, redemptions for the Funds and creations holdings will be consistent with all the Tracking Basket, or the Fund and redemptions will work in a manner requirements in the Exemptive Relief.14 Portfolio is available to all market substantively identical to that of series Any foreign common stocks held by the participants, as applicable. of Managed Fund Shares. The Adviser Fund will be traded on an exchange that expects that the Shares of the Funds Trading Rules is a member of ISG or with which the will generally be created and redeemed Exchange has in place a comprehensive The Exchange deems Tracking Fund in-kind, with limited exceptions. The surveillance sharing agreement.15 Shares to be equity securities, thus names and quantities of the instruments The Fund seeks capital appreciation rendering trading in the Shares subject that constitute the basket of securities as its investment objective. The Fund to the Exchange’s existing rules for creations and redemptions will be seeks to achieve its investment objective governing the trading of equity the same as a Fund’s Tracking Basket, by investing primarily in exchange- securities.16 As provided in Rule except to the extent purchases and traded common stocks of U.S. 14.11(m)(2)(C), the minimum price redemptions are made entirely or in part companies that the Sub-Adviser variation for quoting and entry of orders on a cash basis. In the event that the believes have potential for earnings or in securities traded on the Exchange is value of the Tracking Basket is not the revenue growth driven by long-term $0.01. The Exchange has appropriate same as a Fund’s NAV, the creation and secular trends and themes. The Fund rules to facilitate trading in Tracking redemption baskets will consist of the may invest in securities of issuers of all Fund Shares during all trading sessions. securities included in the Tracking capitalization sizes; however, it will Basket plus or minus an amount of cash Tracking Basket for the Proposed Funds primarily hold securities of large and equal to the difference between the NAV mid-capitalization issuers. The Fund For the Funds, the Tracking Basket and the value of the Tracking Basket, as usually will hold a relatively small will include a significant percentage of further described below. number of stocks (approximately 20–30) the securities held in the Fund Portfolio, The Tracking Basket will be and may invest more than 25% of its but will exclude certain securities held constructed utilizing a risk model, assets in a given sector. in the Fund Portfolio (or modify their which includes a covariance matrix, Trading Halts weightings), such as those the Fund’s based on an optimization process to portfolio managers are actively looking minimize deviations in the return of the Rule 14.11(m)(4)(B)(iv) provides that to purchase or sell, or securities which, Tracking Basket relative to the Fund. (a) the Exchange may consider all if disclosed, could increase the risk of The proprietary optimization process relevant factors in exercising its front-running or free-riding. By design, mathematically seeks to minimize key discretion to halt trading in a series of the behavior of the Tracking Basket will parameters that the Adviser believes are Tracking Fund Shares. Trading may be be highly correlated with the behavior important to the effectiveness of the halted because of market conditions or of a Fund Portfolio. A process Tracking Basket as a hedge, including for reasons that, in the view of the developed by the Adviser will be used tracking error (standard deviation of to optimize the Tracking Basket, which return differentials between the 14 Pursuant to the Exemptive Relief, the Fund’s the Adviser expects will cause the permissible investments include only the following Tracking Basket and the Fund) and instruments: ETFs, exchange-traded notes, performance of the Tracking Basket to creation/redemption transaction costs.18 exchange-traded common stocks, foreign common closely track the performance of the In general, the optimization process stocks, exchange-traded preferred stocks, ADRs, Fund Portfolio. The Exchange notes that attempts to keep the characteristics of exchange-traded real estate investment trusts, although the Tracking Basket exchange-traded commodity pools, exchange-traded the Tracking Basket in line with those metals trusts, exchange-traded currency trusts, and methodology used by the Fund is not of the Fund. Typically, the Tracking exchange-traded futures that trade identical to the Tracking Basket Basket is expected to be rebalanced on contemporaneously with the Shares, as well as cash methodology in a proposal to list and schedule with the public disclosure of and cash equivalents. With the exception of foreign trade shares of Tracking Fund Shares common stocks and cash and cash equivalents, all the Fund’s holdings; however, a new holdings of the Fund will be listed on a U.S. that was previously approved by the optimized Tracking Basket may be national securities exchange. generated as frequently as daily, and 15 For a list of the current members of ISG, see 16 With respect to trading in Tracking Fund therefore, rebalancing may occur more www.isgportal.com. The Exchange notes that all Shares, all of the BZX Member obligations relating frequently at the Adviser’s discretion. In components, except the cash and cash equivalent to product description and prospectus delivery components, of the Funds may trade on markets requirements will continue to apply in accordance that are members of ISG or with which the with Exchange rules and federal securities laws, 17 See Tracking Fund Shares Approval Order. Exchange has in place a comprehensive and the Exchange will continue to monitor its 18 Tracking error measures the deviations surveillance sharing agreement. Members for compliance with such requirements. between the Tracking Basket and Fund.

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determining whether to rebalance a new and its Tracking Basket will be such NAV, and a calculation of the optimized Tracking Basket, the Adviser sufficiently small such that the Tracking premium or discount of the closing will consider various factors, including Basket will provide Authorized price or bid/ask price against such NAV. liquidity of the securities in the Participants, arbitrageurs, and certain The website will also disclose the Tracking Basket, tracking error, and the other market participants (collectively, percentage weight overlap between the cost to create and trade the Tracking ‘‘Market Makers’’) with a reliable holdings of the Tracking Basket Basket.19 For example, if the Adviser hedging vehicle that they can use to compared to the Fund holdings for the determines that a new Tracking Basket effectuate low-risk arbitrage trades in prior business day and any information would reduce the variability of return Fund Shares. The Exchange believes regarding the bid/ask spread for each differentials between the Tracking that the disclosures provided by the Fund as may be required for other ETFs Basket and the Fund when balanced Funds will allow Market Makers to under Rule 6c–11 under the 1940 Act, against the cost to trade the new understand the relationship between the as amended. Price information for the Tracking Basket, rebalancing may be performance of a Fund and its Tracking exchange-listed instruments held by the appropriate. The Adviser will Basket. Market Makers will be able to Funds, including both U.S. and non- periodically review the Tracking Basket estimate the value of and hedge U.S. listed equity securities and U.S. parameters and Tracking Basket positions in a Fund’s Shares, which the exchange-listed futures will be available performance and process. Exchange believes will facilitate the through major market data vendors or As noted above, each Fund will also arbitrage process and help ensure that securities exchanges listing and trading disclose the entirety of its portfolio the Fund’s Shares normally will trade at such securities. holdings, including the name, identifier, market prices close to their NAV. The The Exchange represents that the market value and weight of each Exchange also believes that competitive Shares of the Funds will continue to security and instrument in the portfolio, market making, where traders are comply with all other requirements at a minimum within at least 60 days looking to take advantage of differences applicable to Tracking Fund Shares, following the end of every fiscal quarter. in bid-ask spread, will aid in keeping including the dissemination of key The Exchange notes that the concept of spreads tight. information such as the Tracking the Tracking Basket employed under 2. Statutory Basis Basket, the Fund Portfolio, and NAV, this structure is designed to provide The Exchange believes that the suspension of trading or removal, investors with the traditional benefits of trading halts, surveillance, minimum ETFs while protecting the Funds from proposal is consistent with Section 6(b) 21 price variation for quoting and order the potential for front running or free of the Act in general and Section 6(b)(5) of the Act 22 in particular in that entry, an information circular informing riding of portfolio transactions, which members of the special characteristics could adversely impact the performance it is designed to prevent fraudulent and manipulative acts and practices, to and risks associated with trading in the of a Fund. Shares, and firewalls as set forth in the The Exchange believes that the promote just and equitable principles of trade, to foster cooperation and Rules applicable to Tracking Fund particular instruments that may be Shares and the order approving such included in each of the Fund’s coordination with persons engaged in facilitating transactions in securities, to rules. Moreover, U.S.-listed equity respective Fund Portfolio and Tracking securities held by the Funds will trade Basket do not raise any concerns related remove impediments to and perfect the mechanism of a free and open market on markets that are a member of ISG or to the Tracking Baskets being able to with which the Exchange has in place closely track the NAV of the Funds and a national market system and, in general, to protect investors and the a comprehensive surveillance sharing because such instruments include only agreement. All statements and instruments that trade on an exchange public interest. The Exchange notes that a significant representations made in this filing contemporaneously with the Shares.20 amount of information about each Fund regarding the description of the In addition, each Fund’s Tracking and its Fund Portfolio will be publicly portfolio or reference assets, limitations Basket will be optimized so that it available at all times. Each Fund will on portfolio holdings or reference assets, reliably and consistently correlates to disclose the Tracking Basket, which is dissemination and availability of the performance of the Fund. reference asset (as applicable), or the The Adviser anticipates that the designed to closely track the daily performance of the Fund Portfolio, on a applicability of Exchange listing rules returns between a Fund and its specified in this filing shall constitute respective Tracking Basket will have a daily basis. Each Fund will at a minimum publicly disclose the entirety continued listing requirements for the consistent relationship and that the Shares. The issuer has represented to deviation in the returns between a Fund of its portfolio holdings, including the name, identifier, market value and the Exchange that it will advise the Exchange of any failure by a Fund or 19 The Adviser uses a trading cost model to weight of each security and instrument develop estimates of costs to trade a new Tracking in the portfolio within at least 60 days Shares to comply with the continued Basket. There are essentially two elements to this following the end of every fiscal quarter listing requirements, and, pursuant to cost: (1) The cost to purchase securities constituting in a manner consistent with normal its obligations under Section 19(g)(1) of the Tracking Basket, i.e., the cost to put on the the Act, the Exchange will surveil for hedge for the Authorized Participant, and (2) the disclosure requirements otherwise cost of any adjustments that need to be made to the applicable to open-end investment compliance with the continued listing composition of the Tracking Basket, i.e., the cost to companies registered under the 1940 requirements. FINRA conducts certain the Authorized Participant to change or maintain Act. The website will include additional cross-market surveillances on behalf of the hedge position. The inclusion of the trading cost the Exchange pursuant to a regulatory model in the optimization process is intended to quantitative information updated on a result in a Tracking Basket that is cost effective and daily basis, including, on a per Share services agreement. The Exchange is liquid without compromising its tracking ability. basis for each Fund, the prior business responsible for FINRA’s performance 20 The Exchange notes that to the extent that the day’s NAV and the closing price or bid/ under this regulatory services Fund Portfolio or Tracking Basket include any ask price at the time of calculation of agreement. If a Fund is not in foreign common stocks, such securities will be traded on an exchange that is a member of ISG or compliance with the applicable listing with which the Exchange has in place a 21 15 U.S.C. 78f. requirements, the Exchange will comprehensive surveillance sharing agreement. 22 15 U.S.C. 78f(b)(5). commence delisting procedures with

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respect to such Fund under Exchange with which the Exchange has in place computer screens and other electronic Rule 14.12. a comprehensive surveillance sharing services. Information regarding the The Exchange believes that the agreement. All futures contracts that the previous day’s closing price and trading proposal is designed to prevent Funds may invest in will be traded on volume information for the Shares will fraudulent and manipulative acts and a U.S. futures exchange. The Exchange be published daily in the financial practices in that the Rules relating to or FINRA, on behalf of the Exchange, or section of newspapers. Quotation and listing and trading of Tracking Fund both, will communicate as needed last sale information for the Shares will Shares provide specific initial and regarding trading in the Shares, be available via the CTA high-speed continued listing criteria required to be underlying U.S. exchange-listed equity line. The Exchange deems Tracking met by such securities. securities, and U.S. exchange-listed Fund Shares to be equity securities, thus Rules 14.11(m)(4)(B)(iii) and (iv) futures with other markets and other rendering trading in the Shares subject provide that the Exchange will consider entities that are members of ISG, and the to the Exchange’s existing rules the suspension of trading in and will Exchange or FINRA, on behalf of the governing the trading of equity commence delisting proceedings for a Exchange, or both, may obtain trading securities. As provided in Rule Fund pursuant to Rule 14.12 under any information regarding trading such 14.11(m)(2)(C), the minimum price of the circumstances described above instruments from such markets and variation for quoting and entry of orders and that the Exchange may consider all other entities. In addition, the Exchange in securities traded on the Exchange is relevant factors in exercising its may obtain information regarding $0.01. discretion to halt trading in a series of trading in the Shares, underlying equity For the above reasons, the Exchange Tracking Fund Shares. Trading may be securities, and U.S. exchange-listed believes that the proposed rule change halted because of market conditions or futures from markets and other entities is consistent with the requirements of for reasons that, in the view of the that are members of ISG or with which Section 6(b)(5) of the Act. Exchange, make trading in the Shares the Exchange has in place a inadvisable. comprehensive surveillance sharing B. Self-Regulatory Organization’s Additionally, the Exchange believes agreement. Statement on Burden on Competition that the requirements related to As provided in Rule 14.11(m)(2)(D), The Exchange does not believe that information protection enumerated the Adviser will upon request make the proposed rule change will impose under Rule 14.11(m)(2)(F) will act as a available to the Exchange and/or any burden on competition that is not strong safeguard against any misuse and FINRA, on behalf of the Exchange, the necessary or appropriate in furtherance improper dissemination of information daily Fund Portfolio of each Fund. The of the purpose of the Act. Rather, the related to a Fund Portfolio, the Tracking Exchange believes that the ability to Exchange notes that the proposed rule Basket, or changes thereto. The access the information on an as needed change will facilitate the listing of requirement that any person or entity, basis will provide it with sufficient several new series of actively-managed including a custodian, Reporting information to perform the necessary exchange-traded product, thus Authority, distributor, or administrator, regulatory functions associated with enhancing competition among both who has access to nonpublic listing and trading the Shares on the market participants and listing venues, information regarding the Fund Exchange, including the ability to to the benefit of investors and the Portfolio or the Tracking Basket or monitor compliance with the initial and marketplace. changes thereto, must be subject to continued listing requirements as well procedures designed to prevent the use as the ability to surveil for manipulation C. Self-Regulatory Organization’s and dissemination of material of the Shares. Statement on Comments on the nonpublic information regarding the In addition, Form N–PORT requires Proposed Rule Change Received From applicable Fund Portfolio or the reporting of a fund’s complete portfolio Members, Participants, or Others Tracking Basket or changes thereto will holdings on a position-by-position basis The Exchange has neither solicited act to prevent any individual or entity on a quarterly basis within 60 days after nor received written comments on the from sharing such information fiscal quarter end. Investors can obtain proposed rule change. externally. a fund’s Statement of Additional The Exchange believes that its Information, its Shareholder Reports, its III. Date of Effectiveness of the surveillance procedures are adequate to Form N–CSR, filed twice a year, and its Proposed Rule Change and Timing for properly monitor the trading of the Form N–CEN, filed annually. A fund’s Commission Action Shares on the Exchange during all SAI and Shareholder Reports are Because the foregoing proposed rule trading sessions and to deter and detect available free upon request from the change does not: (i) Significantly affect violations of Exchange rules and the Investment Company, and those the protection of investors or the public applicable federal securities laws. documents and the Form N–PORT, interest; (ii) impose any significant Trading of the Shares through the Form N–CSR, and Form N–CEN may be burden on competition; and (iii) become Exchange will be subject to the viewed on-screen or downloaded from operative for 30 days from the date on Exchange’s surveillance procedures for the Commission’s website at which it was filed, or such shorter time derivative products, including Tracking www.sec.gov. The Exchange also notes as the Commission may designate, it has Fund Shares. If a Fund is not in that the Exemptive Relief provides that become effective pursuant to Section compliance with the applicable listing the Funds will comply with Regulation 19(b)(3)(A) of the Act 23 and Rule 19b– requirements, the Exchange will Fair Disclosure, which prohibits 4(f)(6) thereunder.24 commence delisting procedures under selective disclosure of any material non- Exchange Rule 14.12. In addition, the public information, which otherwise do 23 15 U.S.C. 78s(b)(3)(A). Exchange also has a general policy not apply to issuers of Tracking Fund 24 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– prohibiting the distribution of material, Shares. 4(f)(6)(iii) requires a self-regulatory organization to non-public information by its Information regarding market price give the Commission written notice of its intent to file the proposed rule change, along with a brief employees. Any foreign common stocks and trading volume of the Shares will be description and text of the proposed rule change, held by the Fund will be traded on an continually available on a real-time at least five business days prior to the date of filing exchange that is a member of ISG or basis throughout the day on brokers’ Continued

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A proposed rule change filed under Electronic Comments SECURITIES AND EXCHANGE Rule 19b–4(f)(6) 25 normally does not COMMISSION • Use the Commission’s internet become operative for 30 days after the [Release No. 10905; Release No. 90693] date of the filing. However, pursuant to comment form (http://www.sec.gov/ rules/sro.shtml); or Rule 19b–4(f)(6)(iii),26 the Commission Order Approving Public Company may designate a shorter time if such • Send an email to rule-comments@ Accounting Oversight Board Budget action is consistent with the protection sec.gov. Please include File Number SR– and Annual Accounting Support Fee of investors and the public interest. The CboeBZX–2020–091 on the subject line. for Calendar Year 2021 Exchange has asked the Commission to Paper Comments December 16, 2020. waive the 30-day operative delay. The The Sarbanes-Oxley Act of 2002, as proposed rule change is substantially • Send paper comments in triplicate amended (the ‘‘Sarbanes-Oxley Act’’),1 similar to other Tracking Fund Shares to Secretary, Securities and Exchange established the Public Company 27 the Commission previously approved Commission, 100 F Street NE, Accounting Oversight Board (‘‘PCAOB’’) and does not raise any novel regulatory Washington, DC 20549–1090. to oversee the audits of companies that issues. Accordingly, the Commission All submissions should refer to File are subject to the securities laws, and waives the 30-day operative delay and Number SR–CboeBZX–2020–091. This related matters, in order to protect the designates the proposal operative upon file number should be included on the interests of investors and further the filing.28 public interest in the preparation of subject line if email is used. To help the informative, accurate, and independent At any time within 60 days of the Commission process and review your audit reports. Section 982 of the Dodd- filing of the proposed rule change, the comments more efficiently, please use Commission summarily may Frank Wall Street Reform and Consumer only one method. The Commission will Protection Act (the ‘‘Dodd-Frank Act’’) 2 temporarily suspend such rule change if post all comments on the Commission’s it appears to the Commission that such amended the Sarbanes-Oxley Act to internet website (http://www.sec.gov/ provide the PCAOB with explicit action is necessary or appropriate in the rules/sro.shtml). Copies of the authority to oversee auditors of broker- public interest, for the protection of submission, all subsequent dealers registered with the Securities investors, or otherwise in furtherance of amendments, all written statements and Exchange Commission (the the purposes of the Act. If the with respect to the proposed rule ‘‘Commission’’). The PCAOB is to Commission takes such action, the change that are filed with the accomplish these goals through the Commission will institute proceedings Commission, and all written registration of public accounting firms, to determine whether the proposed rule communications relating to the standard setting, inspections, and change should be approved or proposed rule change between the investigation and disciplinary programs. disapproved. Commission and any person, other than The PCAOB is subject to the comprehensive oversight of the IV. Solicitation of Comments those that may be withheld from the public in accordance with the Commission. Interested persons are invited to provisions of 5 U.S.C. 552, will be Section 109 of the Sarbanes-Oxley Act provides that the PCAOB shall establish submit written data, views, and available for website viewing and a reasonable annual accounting support arguments concerning the foregoing, printing in the Commission’s Public fee, as may be necessary or appropriate including whether the proposed rule Reference Room, 100 F Street NE, to establish and maintain the PCAOB. change is consistent with the Act. Washington, DC 20549 on official Under Section 109(f) of the Sarbanes- Comments may be submitted by any of business days between the hours of Oxley Act, the aggregate annual the following methods: 10:00 a.m. and 3:00 p.m. Copies of the accounting support fee shall not exceed filing also will be available for the PCAOB’s aggregate ‘‘recoverable of the proposed rule change, or such shorter time inspection and copying at the principal budget expenses,’’ which may include as designated by the Commission. The Exchange office of the Exchange. All comments has satisfied this requirement. operating, capital, and accrued items. received will be posted without change. 25 17 CFR 240.19b–4(f)(6). The PCAOB’s annual budget and 26 17 CFR 240.19b–4(f)(6)(iii). Persons submitting comments are accounting support fee are subject to 27 See Securities Exchange Act Release No. 88887 cautioned that we do not redact or edit approval by the Commission. In (May 15, 2020), 85 FR 30990 (May 21, 2020) (SR– personal identifying information from addition, the PCAOB must allocate the CboeBZX–2019–107) (Notice of Filing of comment submissions. You should annual accounting support fee among Amendment No. 5 and Order Granting Accelerated submit only information that you wish issuers and among brokers and dealers. Approval of a Proposed Rule Change, as Modified Section 109(b) of the Sarbanes-Oxley by Amendment No. 5, to Adopt Rule 14.11(m), to make available publicly. All Tracking Fund Shares, and to List and Trade Shares submissions should refer to File Act directs the PCAOB to establish a of the Fidelity Blue Chip Value ETF, Fidelity Blue Number SR–CboeBZX–2020–091 and budget for each fiscal year in accordance Chip Growth ETF, and Fidelity New Millennium should be submitted on or before with the PCAOB’s internal procedures, ETF). See also Securities Exchange Act Release No. January 12, 2021. subject to approval by the Commission. 90530 (November 30, 2020), 85 FR 78366 Rule 190 of Regulation P (the ‘‘budget (December 4, 2020) (SR–CboeBZX–2020–085) For the Commission, by the Division of rule’’) governs the Commission’s review (Notice of Filing and Immediate Effectiveness of a Trading and Markets, pursuant to delegated Proposed Rule Change Relating to List and Trade and approval of PCAOB budgets and authority.29 Shares of the Fidelity Growth Opportunities ETF, annual accounting support fees.3 The Fidelity Magellan ETF, Fidelity Real Estate J. Matthew DeLesDernier, budget rule provides, among other Investment ETF, and Fidelity Small-Mid Cap Assistant Secretary. things, a timetable for the preparation Opportunities ETF). and submission of the PCAOB budget 28 For purposes only of waiving the 30-day [FR Doc. 2020–28148 Filed 12–21–20; 8:45 am] operative delay, the Commission has also BILLING CODE 8011–01–P considered the proposed rule’s impact on 1 15 U.S.C. 7201 et seq. efficiency, competition, and capital formation. See 2 Public Law 111–203, 124 Stat. 1376 (2010). 15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12). 3 17 CFR 202.190.

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and for Commission actions related to significant differences between actual SECURITIES AND EXCHANGE each budget, a description of the and budgeted amounts and anticipated COMMISSION information that should be included in cost-savings. Separately, the [Release No. 34–90691; File No. SR– each budget submission, limits on the Commission directs the PCAOB to CboeBZX–2020–093] PCAOB’s ability to incur expenses and continue its written quarterly updates obligations except as provided in the on recent activities, including strategic Self-Regulatory Organizations; Cboe approved budget, procedures relating to initiatives, for the PCAOB’s Office of BZX Exchange, Inc.; Notice of Filing supplemental budget requests, Economic and Risk Analysis, Office of and Immediate Effectiveness of a requirements for the PCAOB to furnish Data, Security, and Technology, and Proposed Rule Change To List and on a quarterly basis certain budget- Division of Registration and Inspections. Trade Shares of the ProShares Short related information, and a list of The PCAOB Board will make itself VIX Short-Term Futures ETF and the definitions that apply to the rule and to ProShares Ultra VIX Short-Term general discussions of PCAOB budget available to meet with the Commissioners on these and other Futures ETF, Each a Series of matters. ProShares Trust II, Under Rule topics. The PCAOB should also submit In accordance with the budget rule, in 14.11(f)(4), Trust Issued Receipts March 2020 the PCAOB provided the its 2020 annual report to the Commission with a narrative Commission by March 31, 2021. December 16, 2020. description of its program issues and The Commission understands that the Pursuant to Section 19(b)(1) of the outlook for the 2021 budget year. In Office of Management and Budget Securities Exchange Act of 1934 1 2 response, the Commission provided the (‘‘OMB’’) has determined that the 2021 (‘‘Act’’), and Rule 19b–4 thereunder, PCAOB with economic assumptions and budget of the PCAOB is subject to notice is hereby given that on December general budgetary guidance for the 2021 sequestration under the Budget Control 14, 2020, Cboe BZX Exchange, Inc. (‘‘Exchange’’ or ‘‘BZX’’) filed with the budget year. The PCAOB subsequently Act of 2011.4 For 2020, the PCAOB delivered a preliminary budget and Securities and Exchange Commission sequestered $16.8 million. That amount budget justification to the Commission. (‘‘Commission’’) the proposed rule will become available in 2021. For 2021, Staff from the Commission’s Office of change as described in Items I and II the Chief Accountant and Office of the sequestration amount will be 5.7% below, which Items have been prepared Financial Management dedicated a or $16.4 million. Consequently, we by the Exchange. The Exchange filed the substantial amount of time to the review expect the PCAOB will have proposal as a ‘‘non-controversial’’ and analysis of the PCAOB’s programs, approximately $0.4 million in excess proposed rule change pursuant to projects, and budget estimates and funds available from the 2020 Section 19(b)(3)(A)(iii) of the Act 3 and attended several meetings with staff of sequestration for spending in 2021. Rule 19b–4(f)(6) thereunder.4 The the PCAOB to further develop the Accordingly, the PCAOB has reduced its Commission is publishing this notice to understanding of the PCAOB’s budget accounting support fee for 2021 by solicit comments on the proposed rule and operations. During the course of approximately $0.4 million. change from interested persons. this review, Commission staff relied The Commission has determined that I. Self-Regulatory Organization’s upon representations and supporting the PCAOB’s 2021 budget and annual Statement of the Terms of Substance of documentation from the PCAOB. Based accounting support fee are consistent the Proposed Rule Change on this review, the Commission issued with Section 109 of the Sarbanes-Oxley a ‘‘passback’’ letter to the PCAOB on The Exchange proposes to list and Act. Accordingly, October 28, 2020. On November 19, trade Shares of the ProShares Short VIX 2020, the PCAOB adopted its 2021 It is ordered, pursuant to Section 109 Short-Term Futures ETF (the ‘‘Short budget and accounting support fee of the Sarbanes-Oxley Act, that the Fund’’) and the ProShares Ultra VIX during an open meeting, and PCAOB budget and annual accounting Short-Term Futures ETF (the ‘‘Ultra subsequently submitted that budget to support fee for calendar year 2021 are Fund’’, and collectively the ‘‘Funds’’) the Commission for approval. approved. under Rule 14.11(f)(4), which governs After considering the above, the the listing and trading of Trust Issued By the Commission. Commission did not identify any Receipts 5 on the Exchange.6 The proposed disbursements in the 2021 J. Matthew DeLesDernier, Exchange notes that the Funds have budget adopted by the PCAOB that are Assistant Secretary. previously been approved by the not properly recoverable through the [FR Doc. 2020–28156 Filed 12–21–20; 8:45 am] Commission and are currently listed on 7 annual accounting support fee, and the BILLING CODE 8011–01–P Arca. This proposal is substantively Commission believes that the aggregate proposed 2021 annual accounting 1 15 U.S.C. 78s(b)(1). support fee does not exceed the 2 17 CFR 240.19b–4. PCAOB’s aggregate recoverable budget 3 15 U.S.C. 78s(b)(3)(A)(iii). 4 expenses for 2021. 17 CFR 240.19b–4(f)(6). 5 Rule 14.11(f)(4) applies to Trust Issued Receipts Significant uncertainty surrounding that invest in ‘‘Financial Instruments.’’ The term the impact of COVID–19 on the ‘‘Financial Instruments,’’ as defined in Rule PCAOB’s operations reinforces the 14.11(f)(4)(A)(iv), means any combination of importance of continued coordination investments, including cash; securities; options on securities and indices; futures contracts; options on between the SEC and PCAOB. The futures contracts; forward contracts; equity caps, Commission directs the PCAOB during collars and floors; and swap agreements. 2021 to continue to schedule monthly 6 The Commission approved BZX Rule 14.11(f)(4) meetings, as necessary, with the in Securities Exchange Act Release No. 68619 4 OMB Report to the Congress on the Joint Commission’s staff to discuss important (January 10, 2013), 78 FR 3489 (January 16, 2013) Committee Reductions for Fiscal Year 2021, (SR–BATS–2012–044). policy initiatives, changes related to February 10, 2020, available at https:// 7 See Securities Exchange Act No. 64470 (May 11, program areas, and significant impacts www.whitehouse.gov/wp-content/uploads/2020/02/ 2011) 76 FR 28493 (May 15, 2011) (SR–NYSEArca– to the PCAOB’s 2021 budget, including JC-sequestration_report_FY21_2-10-20.pdf. Continued

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identical to the Original Proposal with Receipts 8 on the Exchange.9 The Distribution Co. (‘‘Distributor’’) serves updates from the Prior Proposal, and the Exchange notes that the Funds have as Distributor of the Shares. Wilmington issuer represents that all material previously been approved by the Trust Company, a Delaware banking representations contained within the Commission and are currently listed on corporation, is the sole trustee of the Original Proposal as updated by the Arca.10 This proposal is substantively Trust. Prior Proposal remain true. Further, the identical to the Original Proposal with The Short Fund seeks, on a daily Funds are already trading on the updates from the Prior Proposal, and the basis, to provide investment results Exchange pursuant to unlisted trading issuer represents that all material (before fees and expenses) that representations contained within the privileges, as provided in Rule 14.11(j). correspond to one-half the inverse Original Proposal as updated by the (¥0.5x) of the daily performance, at the The text of the proposed rule change Prior Proposal remain true. Further, the time of the net asset value (‘‘NAV’’) is also available on the Exchange’s Funds are already trading on the calculation, of a benchmark that seeks to website (http://markets.cboe.com/us/ Exchange pursuant to unlisted trading equities/regulation/rule_filings/bzx/), at privileges, as provided in Rule 14.11(j). offer exposure to market volatility the Exchange’s Office of the Secretary, The Sponsor, a Maryland limited through publicly traded futures markets. and at the Commission’s Public liability company, serves as the Sponsor The Ultra Fund seeks, on a daily basis, Reference Room. of Trust. The Sponsor is a commodity to provide investment results (before pool operator.11 Bank of New York fees and expenses) that correspond to II. Self-Regulatory Organization’s Mellon serves as the administrator (the one and one-half times (1.5x) the daily Statement of the Purpose of, and ‘‘Administrator’’), custodian and performance, at the time of NAV Statutory Basis for, the Proposed Rule transfer agent of the Funds and their calculation, of a benchmark that seeks to Change respective Shares. SEI Investments offer exposure to market volatility through publicly traded futures markets. In its filing with the Commission, the 8 Rule 14.11(f)(4) applies to Trust Issued Receipts The benchmark for the Funds is the S&P Exchange included statements that invest in ‘‘Financial Instruments.’’ The term 500 VIX Short-Term Futures Index concerning the purpose of and basis for ‘‘Financial Instruments,’’ as defined in Rule (ticker symbol SPVIXSTR, the 14.11(f)(4)(A)(iv), means any combination of 12 the proposed rule change and discussed investments, including cash; securities; options on ‘‘Index’’). The Index utilizes prices of any comments it received on the securities and indices; futures contracts; options on the next two near-term VIX futures proposed rule change. The text of these futures contracts; forward contracts; equity caps, contracts to replicate a position that statements may be examined at the collars and floors; and swap agreements. rolls the nearest month VIX futures 9 The Commission approved BZX Rule 14.11(f)(4) places specified in Item IV below. The in Securities Exchange Act Release No. 68619 contracts to the next month on a daily Exchange has prepared summaries, set (January 10, 2013), 78 FR 3489 (January 16, 2013) basis in equal fractional amounts. The forth in sections A, B, and C below, of (SR–BATS–2012–044). Ultra Fund will take long positions in 10 the most significant aspects of such See Securities Exchange Act No. 64470 (May futures contracts based on the Cboe 11, 2011) 76 FR 28493 (May 15, 2011) (SR– statements. NYSEArca–2011–23) (Proposal to list and trade Volatility Index (‘‘VIX’’), while the Shares of the ProShares Short VIX Short-Term Short Fund will take short positions in A. Self-Regulatory Organization’s Futures ETF and the ProShares Ultra VIX Short- futures contracts based on the VIX. Statement of the Purpose of, and Term Futures ETF (the ‘‘Original Proposal’’)). See Statutory Basis for, the Proposed Rule also Securities Exchange Act No. 65134 (August 15, The Index is comprised of, and the 2011) 76 FR 52037 (August 19, 2011) (SR– value of the Funds will be based on, VIX Change NYSEArca–2011–23) (Order approving the listing futures contracts traded on the Cboe and trading of the ProShares Short VIX Short-Term 1. Purpose Futures ETF and the ProShares Ultra VIX Short- Futures Exchange, Inc. (‘‘CFE’’) Term Futures ETF). See also Securities Exchange (hereinafter referred to as ‘‘VIX Futures The Exchange proposes to list and Act No. 83000 (April 5, 2018) 83 FR 15659 (April Contracts’’). VIX Futures Contracts are trade Shares of the ProShares Short VIX 11, 2018) (SR–NYSEArca–2018–17) (Notice of filing and immediate effectiveness to amend certain measures of the market’s expectation of Short-Term Futures ETF (the ‘‘Short representations made in the Prior Proposal relating the level of VIX at certain points in the Fund’’) and the ProShares Ultra VIX to Shares of the ProShares Short VIX Short-Term future, and as such will behave Short-Term Futures ETF (the ‘‘Ultra Futures ETF and the ProShares Ultra VIX Short- differently than current or spot VIX Fund’’, and collectively the ‘‘Funds’’) Term Futures ETF (the ‘‘Prior Proposal’’)). values.13 The Funds are not linked to 11 The Trust filed on behalf of the Funds a under Rule 14.11(f)(4), which governs registration statement on Form S–3 under the the VIX, and in many cases the Index, the listing and trading of Trust Issued Securities Act of 1933 (File No. 333–231875) and by extension the Funds, could (‘‘Registration Statement’’) on May 11, 2020 that was declared effective on September 9, 2020. The 12 Funds’ prospectus containing the previous Standard & Poor’s Financial Services LLC, the investment objectives for the Funds was filed index sponsor with respect to the Index, is not a broker-dealer and has implemented procedures 2011–23) (Proposal to list and trade Shares of the pursuant to Rule 424(b)(3) on February 15, 2018. A prospectus containing the new objectives, as designed to prevent the use and dissemination of ProShares Short VIX Short-Term Futures ETF and material, non-public information regarding the the ProShares Ultra VIX Short-Term Futures ETF described in the Prior Proposal, was filed pursuant to Rule 424(b)(3) on February 28, 2018 (the ‘‘Prior Index. (the ‘‘Original Proposal’’)). See also Securities 13 Registration Statement’’). The description of the VIX is the ticker symbol for the Cboe Volatility Exchange Act No. 65134 (August 15, 2011) 76 FR Funds and the Shares contained in the Prior Index, a popular measure of implied volatility. 52037 (August 19, 2011) (SR–NYSEArca–2011–23) Proposal are based on the Prior Registration According to the Registration Statement, the goal of (Order approving the listing and trading of the Statement. As noted above, all material the VIX is to estimate the implied volatility of the ProShares Short VIX Short-Term Futures ETF and representations contained within the Original S&P 500 over the next 30 days. A relatively high the ProShares Ultra VIX Short-Term Futures ETF). Proposal as updated by the Prior Proposal remain level of the VIX corresponds to a more volatile U.S. See also Securities Exchange Act No. 83000 (April true. The change to each Fund’s investment equity market as expressed by more costly options 5, 2018) 83 FR 15659 (April 11, 2018) (SR– objective as described in the Prior Proposal was on the S&P 500 Index. The VIX represents one measure of the market’s expectation of the volatility NYSEArca–2018–17) (Notice of filing and implemented effective as of the close of business on February 27, 2018. The Sponsor issued a press over the next 30 day period. It is a composite value immediate effectiveness to amend certain release dated February 26, 2018 regarding the of options on the S&P 500 Index. The formula used representations made in the Prior Proposal relating Sponsor’s plans to reduce the target exposure for to calculate the composite value utilizes current to Shares of the ProShares Short VIX Short-Term the Funds. See http://www.proshares.com/news/ market prices for a series of out-of-the-money calls Futures ETF and the ProShares Ultra VIX Short- proshare_capital_management_llc_plans_to_ and puts for the front month and second month Term Futures ETF (the ‘‘Prior Proposal’’)). reduce_target_exposure_on_two_etfs.html. expirations.

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significantly underperform or Contracts based on components of the implemented and will maintain a ‘‘fire outperform the VIX. Index to pursue its investment objective. wall’’ with respect to such broker-dealer While the VIX represents a measure of In the event position accountability regarding access to information the current expected volatility of the rules are reached with respect to VIX concerning the composition and/or S&P 500 over the next 30 days, the Futures Contracts, ProShare Capital changes to the portfolio. In the event prices of VIX Futures Contracts are Management LLC (‘‘the Sponsor’’), may, that (a) the Sponsor becomes a broker- based on the current expectation of in its commercially reasonable dealer or newly affiliated with a broker- what the expected 30-day volatility will judgment, cause such Fund to obtain dealer, or (b) any new sponsor is a be at a particular time in the future (on exposure through swaps referencing the broker-dealer or becomes affiliated with the expiration date). For example, a VIX relevant Index or particular VIX Futures a broker-dealer, it will implement and Futures Contract purchased in March Contracts, or invest in other futures maintain a fire wall with respect to its that expires in May, in effect, is a contracts or swaps not based on the relevant personnel or such broker-dealer forward contract on what the level of particular VIX Futures Contracts if such affiliate, as applicable, regarding access the VIX, as a measure of 30-day implied instruments tend to exhibit trading to information concerning the volatility of the S&P 500, will be on the prices or returns that correlate with the composition and/or changes to the May expiration date. The forward Index or any VIX Futures Contract and portfolio, and will be subject to volatility reading of the VIX may not will further the investment objective of procedures designed to prevent the use correlate directly to the current such Fund.15 The Funds may also invest and dissemination of material non- volatility reading of the VIX because the in swaps if the market for a specific VIX public information regarding such implied volatility of the S&P 500 at a Futures Contract experiences portfolio. future expiration date may be different emergencies (e.g., natural disaster, Each of the Funds uses investment from the current implied volatility of terrorist attack or an act of God) or techniques that include the use of any the S&P 500. As a result, the Index and disruptions (e.g., a trading halt or a flash one or a combination of VIX Futures the Funds should be expected to crash) that prevent a Fund from Contracts and may, if applicable, perform very differently from one-half obtaining the appropriate amount of include swaps. The Funds’ investment the inverse of the daily performance or investment exposure to the affected VIX techniques may involve a small a multiple of the daily performance of Futures Contracts directly or to other investment relative to the amount of the Index over all periods of time. To futures contracts.16 Each Fund also may investment exposure assumed and may illustrate, on December 4, 2019, the VIX invest in Cash and Cash Equivalents 17 result in losses exceeding the amounts closed at a price of 14.8 and the price such as U.S. Treasury securities or other invested. Such techniques, particularly of the February 2020 VIX Futures high credit quality short-term fixed- when used to create leverage, may Contracts expiring on February 19, 2020 income or similar securities (including expose the Funds to potentially was 18.125. In this example, the price shares of money market funds, bank dramatic changes (losses or gains) in the of the VIX represented the 30-day deposits, bank money market accounts, value of their investments and imperfect implied, or ‘‘spot,’’ volatility (the certain variable rate-demand notes and correlation between the value of the volatility expected for the period from repurchase agreements collateralized by investments and the security or Index. December 5, 2019 to January 5, 2020) of government securities) that may serve as The Funds do not seek to achieve the S&P 500 and the February 2020 VIX collateral for the futures contracts. their stated investment objective over a Futures Contracts represented forward If the Sponsor to the Trust issuing the period greater than one day because implied volatility (the volatility Trust Issued Receipts is affiliated with mathematical compounding prevents the Funds from perfectly achieving such expected for the period from February a broker-dealer, such Sponsor to the results. Accordingly, results over 19 to March 19, 2020) of the S&P 500. Trust shall erect and maintain a ‘‘fire If the Short Fund is successful in wall’’ between the Sponsor and the periods of time greater than one day broker-dealer with respect to access to typically will not be a simple one-half meeting its objective, its value (before ¥ fees and expenses) should gain information concerning the composition of the inverse correlation ( 50%) or approximately half as much on a and/or changes to such Trust portfolio. multiple correlation (+150%) of the percentage basis as its Index when the The Sponsor is not a broker-dealer, but period return of the Index and may Index declines on a given day. is affiliated with a broker-dealer and has differ significantly. According to the Registration Conversely, its value (before fees and Statement, each Fund is not actively expenses) should lose approximately Market Conditions ‘‘includes, but is not limited to, the absence of trading halts in the applicable managed by traditional methods, which half as much on a percentage basis as financial markets generally; operational issues typically involve effecting changes in the Index when the Index rises on a causing dissemination of inaccurate market the composition of a portfolio on the information or system failures; or force majeure given day. basis of judgments relating to economic, If the Ultra Fund is successful in type events such as natural or man-made disaster, act of God, armed conflict, act of terrorism, riot or financial and market considerations meeting its objective, its value (before labor disruption, or any similar intervening with a view toward obtaining positive fees and expenses) should gain circumstance.’’ results under all market conditions. approximately 1.5 times as much on a 15 To the extent practicable, the Funds will invest Rather, each Fund seeks to remain fully percentage basis as its Index when the in swaps cleared through the facilities of a invested at all times in investment Index rises on a given day. Conversely, centralized clearing house. 16 According to the Registration Statement, the positions that, in combination, provide its value (before fees and expenses) Sponsor will also attempt to mitigate the Funds’ exposure to its Index consistent with its should lose approximately 1.5 times as credit risk by transacting only with large, well- investment objective even during much on a percentage basis as its Index capitalized institutions using measures designed to periods in which that benchmark is flat when the Index declines on a given day. determine the creditworthiness of a counterparty. The Sponsor will take various steps to limit or moving in a manner which causes the Each Fund will under Normal Market counterparty credit risk, as described in the Conditions 14 invest in VIX Futures value of a Fund to decline. Registration Statement. In seeking to achieve each Fund’s 17 For purposes of this proposal, the term ‘‘Cash 14 For the purpose of this filing, the term ‘‘Normal and Cash Equivalents’’ shall have the definition investment objective, the Sponsor uses Market Conditions’’ shall have the same definition provided in Exchange Rule 14.11(i)(4)(C)(iii), a mathematical approach to investing. as Rule 14.11(i)(3)(D), which provides that Normal applicable to Managed Fund Shares. Using this approach, the Sponsor

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determines the type, quantity and mix rolls continuously throughout each The procedures by which an of investment positions that the Sponsor month from the first month VIX Futures authorized participant can redeem one believes in combination should produce Contract into the second month VIX or more Creation Units mirror the returns consistent with such Fund’s Futures Contract. procedures for the purchase of Creation objective. The Sponsor relies upon a The Index rolls on a daily basis. Units. On any Business Day, an pre-determined model to generate According to the Registration Statement, authorized participant may place an orders that result in repositioning the one of the effects of daily rolling is to order with the Distributor to redeem one Funds’ investments in accordance with maintain a constant weighted average or more Creation Units. The redemption their respective investment objectives. maturity for the underlying futures proceeds from a Fund consist of the The S&P 500 VIX Short-Term Futures contracts. Unlike equities, which cash redemption amount. The cash Index typically entitle the holder to a redemption amount is equal to the NAV According to the Registration continuing stake in a corporation, of the number of Creation Unit(s) of a Statement, the Index is intended to futures contracts normally specify a Fund requested in the authorized reflect the returns that are potentially certain date for the delivery of the participant’s redemption order as of the available through an unleveraged underlying asset or financial instrument time of the calculation of a Fund’s NAV investment in the VIX Futures Contracts or, in the case of futures contracts on the redemption order date, less comprising the Index (the ‘‘Index relating to indices such as the VIX, a applicable transaction fees. Components’’). certain date for payment in cash of an Unlike the Index, the VIX, which is Availability of Information Regarding amount determined by the level of the not a benchmark for any Fund, is the Shares underlying index. The Index operates by calculated based on the prices of put The NAV for the Funds’ Shares will selling, on a daily basis, Index and call options on the S&P 500, which be calculated by the Administrator once Components with a nearby settlement are traded on Cboe Exchange, Inc. a day and will be disseminated daily to date and purchasing Index Components The S&P 500 VIX Short-Term Futures all market participants at the same Index employs rules for selecting the with a longer-dated settlement date. The time.20 Pricing information will be Index Components and a formula to roll for each contract occurs on each available on each Fund’s website calculate a level for the Index from the Business Day according to a pre- including: (1) The prior Business Day’s prices of these components. Currently, determined schedule that has the effect reported NAV, the closing market price the Index Components represent the of keeping constant the weighted or the bid/ask price, daily trading prices of the two near-term VIX futures average maturity of the relevant Index volume, and a calculation of the months, replicating a position that rolls Components. This process is known as premium and discount of the closing the nearest month VIX Futures Contract ‘‘rolling’’ a futures position, and the market price or bid/ask price against the to the next month VIX Futures Contract Index is a ‘‘rolling index’’. The constant NAV; and (2) data in chart format on a daily basis in equal fractional weighted average maturity for the displaying the frequency distribution of amounts. This results in a constant futures underlying the Index is one discounts and premiums of the daily weighted average maturity of one month. closing price against the NAV, within month. The roll period begins on the Because the Index incorporates this appropriate ranges, for each of the four Tuesday prior to the monthly CFE VIX process of rolling futures positions on a previous calendar quarters. Futures Contracts settlement date and daily basis, and the Funds, in general, The intraday, closing, and settlement runs through the Tuesday prior to the also roll their positions on a daily basis, prices of the Index Components are also subsequent month’s CFE VIX Futures the daily roll is not anticipated to be a readily available from the websites of Contract settlement date. significant source of tracking error CFE (www.cfe.cboe.com), automated between the Funds and the Index. The quotation systems, published or other Calculation of the Index Index is based on VIX Futures Contracts public sources, or on-line information The level of the Index is calculated in and not the VIX, and as such neither the services such as Bloomberg or Reuters. accordance with the method described Funds nor the Index are expected to Complete real-time data for component in the Registration Statement. The level track the VIX. futures underlying the Index is available of the Index will be published at least by subscription from Reuters and Purchases and Redemptions of Creation every 15 seconds both in real time from Bloomberg. Specifically, the level of the Units 9:30 a.m. to 4:00 p.m., E.T. and at the Index will be published at least every 15 close of trading on each Business Day 18 The Funds will create and redeem seconds both in real time from 9:30 a.m. by Bloomberg L.P. and Reuters. Shares from time to time in one or more to 4:00 p.m. E.T. and at the close of The Index Components comprising Creation Units. A Creation Unit is a trading on each Business Day by the Index represent the prices of certain block of 50,000 Shares. Except when Bloomberg and Reuters. The CFE also VIX Futures Contracts. The Index takes aggregated in Creation Units, the Shares provides delayed futures information on a daily rolling long position in contracts are not redeemable securities. current and past trading sessions and of specified maturities and is intended On any Business Day, an authorized market news free of charge on its to reflect the returns that are potentially participant may place an order with the website. The specific contract available through an unleveraged Distributor to create one or more specifications for component futures investment in those contracts. The Creation Units.19 The total cash Index measures the return from a rolling payment required to create each 20 According to the Registration Statement, net long position in the first and second asset value means the total assets of the Funds Creation Unit is the NAV of 50,000 including, but not limited to, all Cash and Cash month VIX Futures Contracts. The Index Shares of each Fund on the purchase Equivalents or other debt securities less total order date plus the applicable liabilities of the Funds, each determined on the 18 A ‘‘Business Day’’ means any day other than a transaction fee. basis of generally accepted accounting principles in day when any of BZX, Cboe, CFE or other exchange the United States, consistently applied under the material to the valuation or operation of the Funds, accrual method of accounting. Each Fund’s NAV is or the calculation of the VIX, options contracts 19 Authorized participants have a cut-off time of calculated once each trading day as of 4 p.m. (E.T.), underlying the VIX, VIX Futures Contracts or the 2:00 p.m. E.T. to place creation and redemption or an earlier time as set forth on Index is closed for trading. orders. www.proshares.com.

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underlying the Index are also available In addition, the IIV is available day in which an interruption to the on such websites, as well as other through on-line information services dissemination of the IIV, the value of financial informational sources. such as Bloomberg and Reuters. the Index, the VIX or the value of the Quotation and last-sale information The IIV disseminated during Regular underlying VIX Futures Contracts regarding the Shares will be Trading Hours should not be viewed as occurs. If an interruption to the disseminated through the facilities of an actual real time update of the NAV, dissemination of the IIV, the value of an the Consolidated Tape Association which is calculated only once a day. Index, the VIX or the value of the (‘‘CTA’’). Quotation and last-sale The IIV also should not be viewed as a underlying VIX Futures Contracts information regarding VIX Futures precise value of the Shares. persists past the trading day in which it Contracts will be available from the The Exchange believes that occurred, the Exchange will halt trading exchanges on which such instruments dissemination of the IIV provides no later than the beginning of the are traded. Quotation and last-sale additional information regarding the trading day following the interruption. information for swaps will be available Funds that is not otherwise available to In addition, if the Exchange becomes from nationally recognized data services the public and is useful to professionals aware that the NAV with respect to the providers, such as Reuters and and investors in connection with the Shares is not disseminated to all market Bloomberg, through subscription related Shares trading on the Exchange participants at the same time, it will halt agreements or from a broker-dealer who or the creation or redemption of such trading in the Shares until such time as makes markets in such instruments. Shares. the NAV is available to all market Quotation and last-sale information for Additional information regarding the participants. swaps are available through third-party Funds and the Shares, including Suitability pricing services or broker-dealers who investment strategies, risks, creation and make markets in such instruments. redemption procedures, fees, portfolio Currently, Interpretation and Policy Pricing information regarding Cash and holdings disclosure policies, .01 of Exchange Rule 3.7 Cash Equivalents in which the Funds distributions and taxes is included in (Recommendations to Customers) may invest is generally available the Registration Statement. provides that a member, in recommending a transaction in through nationally recognized data Initial and Continued Listing services providers, such as Reuters and connection with products listed Bloomberg, through subscription The Shares of each Fund will conform pursuant to Chapter XIV, must have agreements. to the initial and continued listing reasonable grounds to believe that the In addition, the Funds’ website at criteria under BZX Rule 14.11(f)(4). The recommendation is suitable for the www.proshares.com will display the Exchange represents that, for initial and customer based on any facts disclosed end of day closing Index level, and NAV continued listing, the Funds and the by the customer as to its other security per Share for the applicable Fund. The Trust must be in compliance with Rule holdings and as to its financial situation Funds will provide website disclosure 10A–3 under the Act. A minimum of and needs. Further, the rule provides, of portfolio holdings daily and will 100,000 Shares of each Fund will be that no member shall recommend to a include, as applicable, the notional outstanding at the commencement of customer a transaction in any such value (in U.S. dollars) of VIX Futures trading on the Exchange. The Exchange product unless the member has a Contracts, swaps, as well as Cash and will obtain a representation from the reasonable basis for believing at the time Cash Equivalents held in the portfolio of issuer of the Shares that the NAV per of making the recommendation that the the Funds. This website disclosure of Share for each Fund will be calculated customer has such knowledge and the portfolio composition of the Funds daily and will be made available to all experience in financial matters that he will occur at the same time as the market participants at the same time. may reasonably be expected to be capable of evaluating the risks of the disclosure by the Funds of the portfolio Trading Halts composition to authorized participants recommended transaction and is so that all market participants are With respect to trading halts, the financially able to bear the risks of the provided portfolio composition Exchange may consider all relevant recommended position. information at the same time. Therefore, factors in exercising its discretion to Prior to the commencement of the same portfolio information will be halt or suspend trading in the Shares of trading, the Exchange will inform its members of the suitability requirements provided on the public website as well the Funds. The Exchange will halt of, Interpretation and Policy .01 of as in electronic files provided to trading in the Shares under the Exchange Rule 3.7 in an Information authorized participants. conditions specified in BZX Rule 11.18. In addition, in order to provide Trading may be halted because of Circular. Specifically, members will be updated information relating to the market conditions or for reasons that, in reminded in the Information Circular Funds for use by investors and market the view of the Exchange, make trading that, in recommending transactions in professionals, an updated Intraday in the Shares inadvisable. These may the Shares, they must have a reasonable Indicative Value (‘‘IIV’’) will be include: (1) The extent to which trading basis to believe that (1) the recommendation is suitable for a calculated. The IIV is an indicator of the is not occurring in the securities and/or customer given reasonable inquiry value of the VIX Futures Contracts, the financial instruments composing the concerning the customer’s investment swaps, and Cash and/or Cash daily disclosed portfolio of the Funds; objectives, financial situation, needs, Equivalents less liabilities of a Fund at or (2) whether other unusual conditions and any other information known by the time the IIV is disseminated. The IIV or circumstances detrimental to the such member, and (2) the customer can will be calculated and widely maintenance of a fair and orderly evaluate the special characteristics, and disseminated by one or more major market are present. Trading in the is able to bear the financial risks, of an market data vendors every 15 seconds Shares also will be subject to Rule investment in the Shares. In connection throughout Regular Trading Hours.21 14.11(f)(4)(C)(ii), which sets forth circumstances under which Shares of a with the suitability obligation, the 21 As defined in Rule 1.5(w), the term ‘‘Regular Fund may be halted. Information Circular will also provide Trading Hours’’ means the time between 9:30 a.m. The Exchange represents that the that members must make reasonable and 4:00 p.m. E.T. Exchange may halt trading during the efforts to obtain the following

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information: (1) The customer’s allow trading in the Shares during all commence delisting procedures under financial status; (2) the customer’s tax trading sessions on the Exchange and Exchange Rule 14.12. In addition, the status; (3) the customer’s investment has the appropriate rules to facilitate Exchange also has a general policy objectives; and (4) such other transactions in the Shares during all prohibiting the distribution of material, information used or considered to be trading sessions. The Exchange believes non-public information by its reasonable by such member or that its surveillance procedures are employees. registered representative in making adequate to properly monitor the recommendations to the customer. trading of the Shares on the Exchange Information Circular In addition, FINRA has implemented during all trading sessions and to deter Prior to the commencement of increased sales practice and customer and detect violations of Exchange rules trading, the Exchange will inform its margin requirements for FINRA and the applicable federal securities members in an Information Circular of members applicable to inverse and laws. All of the VIX Futures Contracts the special characteristics and risks leveraged ETFs (which include the held by the Funds will trade on markets associated with trading the Shares. Shares) and options on leveraged ETFs, that are a member of ISG or affiliated Specifically, the Information Circular as described in FINRA Regulatory with a member of ISG or with which the will discuss the following: (1) The Notices 09–31 (June 2009), 09–53 Exchange has in place a comprehensive procedures for purchases and (August 2009) and 09–65 (November surveillance sharing agreement.22 The redemptions of Shares in Creation Units 2009) (the ‘‘FINRA Regulatory Exchange, FINRA, on behalf of the (and that Shares are not individually Notices’’). Members that carry customer Exchange, or both will communicate redeemable); (2) BZX Rule 3.7, which accounts will be required to follow the regarding trading in the Shares and the imposes suitability obligations on FINRA guidance set forth in these underlying listed instruments, including Exchange members with respect to notices. As noted above, each Fund will listed derivatives held by the Funds, recommending transactions in the seek daily investment results, before with the ISG, other markets or entities Shares to customers; (3) how fees and expenses, that correspond to who are members or affiliates of the ISG, information regarding the IIV and the the Index. The Funds do not seek to or with which the Exchange has entered Disclosed Portfolio is disseminated; (4) achieve their respective primary into a comprehensive surveillance the risks involved in trading the Shares investment objective over a period of sharing agreement. In addition, the outside of Regular Trading Hours 23 time greater than a single day. The Exchange, FINRA, on behalf of the when an updated IIV will not be return of the Funds for a period longer Exchange, or both may obtain calculated or publicly disseminated; (5) than a single day will not be a simple information regarding trading in the the requirement that members deliver a multiple (one-half of the inverse Shares and the underlying listed prospectus to investors purchasing correlation (¥50%) with respect to the instruments, including listed newly issued Shares prior to or ProShares Short VIX Short-Term derivatives, held by the Funds from concurrently with the confirmation of a Futures ETF or multiple correlation markets and other entities that are transaction; and (6) trading information. (+150%) with respect to the ProShares members of ISG or with which the Ultra VIX Short-Term Futures ETF) of Exchange has in place a comprehensive The Information Circular will advise the period return of the Index because surveillance sharing agreement. The ETP Holders, prior to the the return of each Fund is the result of Exchange also has a general policy commencement of trading, of the its return for each day compounded prohibiting the distribution of material, prospectus delivery requirements over the period and usually will differ non-public information by its applicable to the Funds. The Exchange in amount and possibly even direction employees. All statements and notes that investors purchasing Shares for the same period. These differences representations made in this filing directly from the Funds will receive a can be significant. regarding the Index composition, prospectus. Members purchasing Shares description of the portfolio or reference from the Funds for resale to investors Trading Rules assets, limitations on portfolio holdings will deliver a prospectus to such The Exchange deems the Shares to be or reference assets, dissemination and investors. The Information Circular will equity securities, thus rendering trading availability of the Index, reference asset, reference the FINRA Regulatory Notices in the Shares subject to the Exchange’s and IIV, and the applicability of regarding sales practice and customer existing rules governing the trading of Exchange rules specified in this filing margin requirements for FINRA equity securities. The Exchange will shall constitute continued listing members applicable to leveraged ETFs allow trading in the Shares during all requirements for the Funds. The issuer and options on leveraged ETFs. The trading sessions and has the appropriate has represented to the Exchange that it Information Circular will also discuss rules to facilitate transactions in the will advise the Exchange of any failure any exemptive, no-action and Shares during all trading sessions. As by the Funds or the Shares to comply interpretive relief granted by the provided in BZX Rule 11.11(a), the with the continued listing requirements, Commission from any rules under the minimum price variation for quoting and, pursuant to its obligations under Act. and entry of orders in securities traded Section 19(g)(1) of the Act, the Exchange In addition, the Information Circular on the Exchange is $0.01, with the will surveil for compliance with the will reference that the Funds are subject exception of securities that are priced continued listing requirements. If the to various fees and expenses described less than $1.00, for which the minimum Funds or the Shares are not in in the Registration Statement. The price variation for order entry is compliance with the applicable listing Information Circular will also reference $0.0001. requirements, the Exchange will that the Commodity Futures Trading Surveillance Commission has regulatory jurisdiction 22 For a list of the current members and affiliate over futures contracts traded on U.S. Trading of the Shares through the members of ISG, see www.isgportal.com. The markets. Exchange will be subject to the Exchange notes that not all components of the Funds’ holdings may trade on markets that are Exchange’s surveillance procedures for members of ISG or with which the Exchange has in 23 As defined in Rule 1.5(w), ‘‘Regular Trading derivative products, including Trust place a comprehensive surveillance sharing Hours’’ means the time between 9:30 a.m. and 4:00 Issued Receipts. The Exchange will agreement. p.m. Eastern Time.

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The Information Circular will also instruments, including listed 14.11(f)(4)(C)(ii), which sets forth disclose the trading hours of the Shares derivatives, held by the Funds from circumstances under which Shares of of the Funds and that the NAV for the markets and other entities that are the Funds may be halted. In addition, as Shares is calculated after 4:00 p.m. E.T. members of ISG or with which the noted above, investors will have ready each trading day. The Information Exchange has in place a comprehensive access to information regarding the Circular will disclose that information surveillance sharing agreement. In Funds’ holdings, the IIV, the Index about the Shares of the Funds is addition, the Exchange also has a value, and quotation and last sale publicly available on the Funds’ general policy prohibiting the information for the Shares. website. distribution of material, non-public information by its employees. Quotation and last-sale information 2. Statutory Basis regarding the Shares will be The proposed rule change is designed The Exchange believes that the disseminated through the facilities of to promote just and equitable principles proposal is consistent with Section 6(b) the CTA. Quotation and last-sale of trade and to protect investors and the of the Act 24 in general and Section public interest in that the Exchange will information regarding VIX Futures 6(b)(5) of the Act 25 in particular in that obtain a representation from the issuer Contracts will be available from the it is designed to prevent fraudulent and of the Shares that the NAV will be exchanges on which such instruments manipulative acts and practices, to calculated daily and that the NAV and are traded. Quotation and last-sale promote just and equitable principles of the Funds’ holdings will be made information for swaps will be available trade, to foster cooperation and from nationally recognized data services coordination with persons engaged in available to all market participants at the same time. In addition, a large providers, such as Reuters and facilitating transactions in securities, to Bloomberg, through subscription remove impediments to and perfect the amount of information is publicly agreements or from a broker-dealer who mechanism of a free and open market available regarding the Funds and the makes markets in such instruments. and a national market system and, in Shares, thereby promoting market general, to protect investors and the transparency. Moreover, the IIV will be Quotation and last-sale information for public interest. disseminated by one or more major swaps will be valued on the basis of The Exchange believes that the market data vendors at least every 15 quotations or equivalent indication of proposed rule change is designed to seconds during Regular Trading Hours. value supplied by a third- party pricing prevent fraudulent and manipulative On each Business Day, before service or broker-dealer who makes acts and practices in that the Shares will commencement of trading in Shares markets in such instruments. Pricing be listed and traded on the Exchange during Regular Trading Hours, the information regarding Cash Equivalents pursuant to the initial and continued Funds will disclose on their website the in which the Fund may invest is listing criteria under Rule 14.11(f)(4). If holdings that will form the basis for the generally available through nationally the Sponsor to the Trust issuing the Fund’s calculation of NAV at the end of recognized data services providers, such Trust Issued Receipts is affiliated with the Business Day. Pricing information as Reuters and Bloomberg, through a broker-dealer, such Sponsor to the will be available on the Funds’ website subscription agreements. Trust shall erect and maintain a ‘‘fire including: (1) The prior Business Day’s The proposed rule change is designed wall’’ between the Sponsor and the reported NAV, the closing market price broker-dealer with respect to access to or the bid/ask price, daily trading to perfect the mechanism of a free and information concerning the composition volume, and a calculation of the open market and, in general, to protect and/or changes to the Funds’ portfolio. premium and discount of the closing investors and the public interest in that The Sponsor is not a broker-dealer, but market price or bid/ask price against the it will facilitate the listing and trading is affiliated with a broker-dealer dealer NAV; and (2) data in chart format of an exchange-traded product that will and has implemented and will maintain displaying the frequency distribution of enhance competition among market a ‘‘fire wall’’ with respect to such discounts and premiums of the daily participants, to the benefit of investors broker-dealer regarding access to closing price against the NAV, within and the marketplace. As noted above, information concerning the composition appropriate ranges, for each of the four the Exchange has in place surveillance and/or changes to the portfolio. In the previous calendar quarters. procedures relating to trading in the event that (a) the Sponsor becomes a Additionally, information regarding Shares and may obtain information via broker-dealer or newly affiliated with a market price and trading of the Shares ISG from other exchanges that are broker-dealer, or (b) any new sponsor is will be continually available on a real- members of ISG or with which the a broker-dealer or becomes affiliated time basis throughout the day on Exchange has entered into a with a broker-dealer, it will implement brokers’ computer screens and other comprehensive surveillance sharing and maintain a fire wall with respect to electronic services, and quotation and agreement. In addition, as noted above, its relevant personnel or such broker- last sale information for the Shares will investors will have ready access to dealer affiliate, as applicable, regarding be available on the facilities of the CTA. information regarding the Funds’ access to information concerning the The website for the Funds will include holdings, the IIV, and quotation and last composition and/or changes to the a form of the prospectus for each Fund sale information for the Shares. The and additional data relating to NAV and portfolio, and will be subject to Information Circular will also reference other applicable quantitative procedures designed to prevent the use the FINRA Regulatory Notices regarding information. Trading in Shares of the and dissemination of material non- sales practice and customer margin Funds will be halted under the public information regarding the requirements for FINRA members portfolio. The Exchange, FINRA, on conditions specified in Exchange Rule 11.18. Trading may also be halted applicable to leveraged ETFs and behalf of the Exchange, or both may options on leveraged ETFs. obtain information regarding trading in because of market conditions or for the Shares and the underlying listed reasons that, in the view of the For the above reasons, the Exchange Exchange, make trading in the Shares believes that the proposed rule change 24 15 U.S.C. 78f. inadvisable. Finally, trading in the is consistent with the requirements of 25 15 U.S.C. 78f(b)(5). Shares will be subject to Section 6(b)(5) of the Act.

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B. Self-Regulatory Organization’s Commission to list and trade on NYSE Commission, and all written Statement on Burden on Competition Arca, Inc.30 The Exchange states that communications relating to the The Exchange does not believe that this proposal is substantively identical proposed rule change between the the proposed rule change will impose to the Original Proposal, including Commission and any person, other than any burden on competition that is not changes from the Prior Proposal, and the those that may be withheld from the public in accordance with the necessary or appropriate in furtherance issuer represents that all material representations contained within the provisions of 5 U.S.C. 552, will be of the purpose of the Act. The Exchange Original Proposal, as updated by the available for website viewing and notes that the proposed rule change, Prior Proposal, remain true. For these printing in the Commission’s Public rather will facilitate the transfer from reasons, the Commission believes that Reference Room, 100 F Street NE, Arca and listing of additional exchange- waiver of the 30-day operative delay is Washington, DC 20549 on official traded products on the Exchange, which consistent with the protection of business days between the hours of will enhance competition among listing investors and the public interest. 10:00 a.m. and 3:00 p.m. Copies of the venues, to the benefit of issuers, Accordingly, the Commission waives filing also will be available for investors, and the marketplace more the 30-day operative delay and inspection and copying at the principal broadly. designates the proposed rule change office of the Exchange. All comments C. Self-Regulatory Organization’s operative upon filing.31 received will be posted without change. Statement on Comments on the At any time within 60 days of the Persons submitting comments are Proposed Rule Change Received From filing of such proposed rule change, the cautioned that we do not redact or edit Members, Participants, or Others Commission summarily may personal identifying information from temporarily suspend such rule change if comment submissions. You should The Exchange has neither solicited it appears to the Commission that such submit only information that you wish nor received written comments on the action is necessary or appropriate in the to make available publicly. All proposed rule change. public interest, for the protection of submissions should refer to File III. Date of Effectiveness of the investors, or otherwise in furtherance of Number SR–CboeBZX–2020–093 and Proposed Rule Change and Timing for the purposes of the Act. should be submitted on or before January 12, 2021. Commission Action IV. Solicitation of Comments For the Commission, by the Division of Because the foregoing proposed rule Interested persons are invited to change does not: (i) Significantly affect Trading and Markets, pursuant to delegated submit written data, views, and 32 the protection of investors or the public authority. arguments concerning the foregoing, J. Matthew DeLesDernier, interest; (ii) impose any significant including whether the proposed rule Assistant Secretary. burden on competition; and (iii) become change is consistent with the Act. operative for 30 days from the date on Comments may be submitted by any of [FR Doc. 2020–28151 Filed 12–21–20; 8:45 am] which it was filed, or such shorter time the following methods: BILLING CODE 8011–01–P as the Commission may designate, it has become effective pursuant to Section Electronic Comments 19(b)(3)(A) of the Act 26 and Rule 19b– • Use the Commission’s internet SECURITIES AND EXCHANGE 4(f)(6) thereunder.27 comment form (http://www.sec.gov/ COMMISSION A proposed rule change filed under rules/sro.shtml); or [Release No. 34–90685; File No. SR– Rule 19b–4(f)(6) 28 normally does not • Send an email to rule-comments@ CboeBZX–2020–092] become operative for 30 days after the sec.gov. Please include File Number SR– date of the filing. However, pursuant to CboeBZX–2020–093 on the subject line. Self-Regulatory Organizations; Cboe Rule 19b–4(f)(6)(iii),29 the Commission BZX Exchange, Inc.; Notice of Filing Paper Comments may designate a shorter time if such and Immediate Effectiveness of a action is consistent with the protection • Send paper comments in triplicate Proposed Rule Change To List and of investors and the public interest. The to Secretary, Securities and Exchange Trade Shares of the ProShares VIX Exchange has asked the Commission to Commission, 100 F Street NE, Short-Term Futures ETF and the waive the 30-day operative delay so that Washington, DC 20549–1090. ProShares VIX Mid-Term Futures ETF, the proposal may become operative All submissions should refer to File Each a Series of ProShares Trust II, immediately upon filing. The Exchange Number SR–CboeBZX–2020–093. This Under Rule 14.11(f)(4) (Trust Issued states that waiver of the 30-day file number should be included on the Receipts) operative delay will allow the Funds to subject line if email is used. To help the December 16, 2020. transfer listing to the Exchange as soon Commission process and review your Pursuant to Section 19(b)(1) of the as is practicable and minimize the comments more efficiently, please use Securities Exchange Act of 1934 amount of time that the Funds’ listing only one method. The Commission will (‘‘Act’’),1 and Rule 19b–4 thereunder,2 venue will be in transition. The Funds post all comments on the Commission’s notice is hereby given that on December have previously been approved by the internet website (http://www.sec.gov/ 14, 2020, Cboe BZX Exchange, Inc. rules/sro.shtml). Copies of the (‘‘Exchange’’ or ‘‘BZX’’) filed with the 26 15 U.S.C. 78s(b)(3)(A). submission, all subsequent 27 Securities and Exchange Commission 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– amendments, all written statements (‘‘Commission’’) the proposed rule 4(f)(6)(iii) requires a self-regulatory organization to with respect to the proposed rule give the Commission written notice of its intent to change as described in Items I and II file the proposed rule change, along with a brief change that are filed with the below, which Items have been prepared description and text of the proposed rule change, by the Exchange. The Exchange filed the at least five business days prior to the date of filing 30 See supra note. proposal as a ‘‘non-controversial’’ of the proposed rule change, or such shorter time 31 For purposes only of waiving the 30-day as designated by the Commission. The Exchange operative delay, the Commission has also has satisfied this requirement. considered the proposed rule’s impact on 32 17 CFR 200.30–3(a)(12). 28 17 CFR 240.19b–4(f)(6). efficiency, competition, and capital formation. See 1 15 U.S.C. 78s(b)(1). 29 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f). 2 17 CFR 240.19b–4.

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proposed rule change pursuant to statements may be examined at the discussed in further detail below, the Section 19(b)(3)(A)(iii) of the Act 3 and places specified in Item IV below. The S&P 500 VIX Short-Term Futures Index Rule 19b–4(f)(6) thereunder.4 The Exchange has prepared summaries, set utilizes prices of the next two near-term Commission is publishing this notice to forth in sections A, B, and C below, of Cboe Volatility Index (‘‘VIX’’) futures solicit comments on the proposed rule the most significant aspects of such contracts to replicate a position that change from interested persons. statements. rolls the nearest month VIX futures to the next month on a daily basis in equal I. Self-Regulatory Organization’s A. Self-Regulatory Organization’s fractional amounts, while the S&P 500 Statement of the Terms of Substance of Statement of the Purpose of, and VIX Mid-Term Futures Index measures the Proposed Rule Change Statutory Basis for, the Proposed Rule Change the return of a daily rolling long The Exchange proposes to list and position in the fourth, fifth, sixth and trade Shares of the ProShares VIX Short- 1. Purpose seventh month of VIX futures contracts. Term Futures ETF and the ProShares The Exchange proposes to list and The Funds will invest in futures VIX Mid-Term Futures ETF (each a trade Shares of the ProShares VIX Short- contracts based on the VIX to pursue ‘‘Fund’’ and, collectively, the ‘‘Funds’’) Term Futures ETF and the ProShares their respective investment objectives. under Rule 14.11(f)(4), which governs VIX Mid-Term Futures ETF (each a Each Fund also may invest in Cash and the listing and trading of Trust Issued ‘‘Fund’’ and, collectively, the ‘‘Funds’’) Cash Equivalents 12 such as U.S. 5 6 Receipts on the Exchange. The under Rule 14.11(f)(4), which governs Treasury securities or other high credit Exchange notes that the Funds have the listing and trading of Trust Issued quality short-term fixed-income or previously been approved by the Receipts 8 on the Exchange.9 The similar securities (including shares of Commission and are currently listed on Exchange notes that the Funds have money market funds, bank deposits, Arca.7 This proposal is substantively previously been approved by the bank money market accounts, certain identical to the Prior Proposal and the Commission and are currently listed on variable rate-demand notes and issuer represents that all material Arca.10 This proposal is substantively repurchase agreements collateralized by representations contained within the identical to the Prior Proposal and the government securities) that may serve as Prior Proposal remain true. Further, the issuer represents that all material collateral for the futures contracts. Funds are already trading on the representations contained within the ProShare Capital Management LLC Exchange pursuant to unlisted trading Prior Proposal remain true. Further, the (the ‘‘Sponsor’’), a Maryland limited privileges, as provided in Rule 14.11(j). Funds are already trading on the liability company, serves as the Sponsor The text of the proposed rule change Exchange pursuant to unlisted trading of ProShares Trust II (the ‘‘Trust’’). The is also available on the Exchange’s privileges, as provided in Rule 14.11(j). Sponsor is a commodity pool website (http://markets.cboe.com/us/ The Funds seek to provide investment operator.13 Bank of New York Mellon equities/regulation/rule_filings/bzx/), at results (before fees and expenses) that serves as the administrator (the the Exchange’s Office of the Secretary, match the performance of a benchmark ‘‘Administrator’’), custodian and and at the Commission’s Public that seeks to offer exposure to market transfer agent of the Funds and their Reference Room. volatility through publicly traded respective Shares. SEI Investments II. Self-Regulatory Organization’s futures markets. The benchmark for Distribution Co. (‘‘Distributor’’) serves Statement of the Purpose of, and ProShares VIX Short-Term Futures ETF as Distributor of the Shares. Wilmington Statutory Basis for, the Proposed Rule is the S&P 500 VIX Short-Term Futures Trust Company, a Delaware banking Change Index (ticker symbol SPVIXSTR) and corporation, is the sole trustee of the the benchmark for ProShares VIX Mid- Trust. In its filing with the Commission, the Term Futures ETF is the S&P 500 VIX If the Sponsor to the Trust issuing the Exchange included statements Mid-Term Futures Index (ticker symbol Trust Issued Receipts is affiliated with concerning the purpose of and basis for SPVIXMTR, each an ‘‘Index’’, and, a broker-dealer, such Sponsor to the the proposed rule change and discussed collectively, the ‘‘Indexes’’).11 As Trust shall erect a ‘‘fire wall’’ between any comments it received on the the Sponsor and the broker-dealer with proposed rule change. The text of these 8 Rule 14.11(f)(4) applies to Trust Issued Receipts respect to access to information that invest in ‘‘Financial Instruments.’’ The term concerning the composition and/or 3 15 U.S.C. 78s(b)(3)(A)(iii). ‘‘Financial Instruments,’’ as defined in Rule 14.11(f)(4)(A)(iv), means any combination of changes to such Trust portfolio. The 4 17 CFR 240.19b–4(f)(6). investments, including cash; securities; options on 5 Rule 14.11(f)(4) applies to Trust Issued Receipts Sponsor is not a broker-dealer, but is securities and indices; futures contracts; options on affiliated with a broker-dealer and has that invest in ‘‘Financial Instruments.’’ The term futurescontracts; forward contracts; equity caps, ‘‘Financial Instruments,’’ as defined in Rule collars and floors; and swap agreements. implemented and will maintain a ‘‘fire 14.11(f)(4)(A)(iv), means any combination of 9 The Commission approved BZX Rule 14.11(f)(4) wall’’ with respect to such broker-dealer investments, including cash; securities; options on in Securities Exchange Act Release No. 68619 securities and indices; futures contracts; options on regarding access to information (January 10, 2013), 78 FR 3489 (January 16, 2013) concerning the composition and/or futures contracts; forward contracts; equity caps, (SR–BATS–2012–044). collars and floors; and swap agreements. 10 See Securities Exchange Act No. 63317 6 The Commission approved BZX Rule 14.11(f)(4) (November 16, 2010) 75 FR 71158 (November 22, 12 For purposes of this proposal, the term ‘‘Cash in Securities Exchange Act Release No. 68619 2010) (SR–NYSEArca–2010–101) (Proposal to list and Cash Equivalents’’ shall have the definition (January 10, 2013), 78 FR 3489 (January 16, 2013) and trade Shares of the ProShares VIX Short-Term provided in Exchange Rule 14.11(i)(4)(C)(iii), (SR–BATS–2012–044). Futures ETF and the ProShares VIX Mid-Term applicable to Managed Fund Shares. 7 See Securities Exchange Act No. 63317 Futures ETF (the ‘‘Prior Proposal’’)). See also 13 The ProShares VIX Short-Term Futures ETF (November 16, 2010) 75 FR 71158 (November 22, Securities Exchange Act No. 63610 (December 27, has filed a registration statement on Form S–3 2010) (SR–NYSEArca–2010–101) (Proposal to list 2010) 76 FR 199 (January 3, 2011) (SR–NYSEArca– under the Securities Act of 1933, dated May 11, and trade Shares of the ProShares VIX Short-Term 2010–101) (Order approving the listing and trading 2020 (File No. 333–238175) and the ProShares VIX Futures ETF and the ProShares VIX Mid-Term of the ProShares VIX Short-Term Futures ETF and Mid-Term Futures ETF has filed a registration Futures ETF (the ‘‘Prior Proposal’’)). See also the ProShares VIX Mid-Term Futures ETF). statement on Form S–1 under the Securities Securities Exchange Act No. 63610 (December 27, 11 Standard & Poor’s Financial Services LLC is the Exchange Act of 1933, dated August 12, 2020 (File 2010) 76 FR 199 (January 3, 2011) (SR–NYSEArca– index sponsor with respect to the Indexes and has No.: 333–244420) (collectively, the ‘‘Registration 2010–101) (Order approving the listing and trading implemented procedures designed to prevent the Statement’’). The description of the Funds and the of the ProShares VIX Short-Term Futures ETF and use and dissemination of material, non-public Shares contained herein are based on the the ProShares VIX Mid-Term Futures ETF). information regarding the Indexes. Registration Statement.

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changes to the portfolio. In the event VIX Futures Contracts market’s measure of the expected that (a) the Sponsor becomes a broker- The Indexes are comprised of, and the volatility (i.e., the rate and magnitude of dealer or newly affiliated with a broker- value of the Funds will be based on, VIX variations in performance) of the S&P dealer, or (b) any new sponsor is a Futures Contracts. VIX Futures 500 over the next 30 days. Each Index broker-dealer or becomes affiliated with Contracts are measures of the market’s seeks to reflect the returns that are a broker-dealer, it will implement a fire expectation of the level of VIX at certain potentially available from holding an wall with respect to its relevant points in the future, and as such will unleveraged long position in certain VIX personnel or such broker-dealer affiliate, behave differently than current, or spot, Futures Contracts. as applicable, regarding access to VIX.15 The Funds are not linked to the Unlike the Indexes, the VIX, which is information concerning the composition VIX, and in many cases the Indexes, and not a benchmark for either Fund, is and/or changes to the portfolio, and will by extension the Funds, will calculated based on the prices of put be subject to procedures designed to significantly underperform the VIX. and call options on the S&P 500, which prevent the use and dissemination of While the VIX represents a measure of are traded on Cboe Exchange, Inc. material non-public information the current expected volatility of the The S&P 500 VIX Short-Term Futures regarding such portfolio. S&P 500 over the next 30 days, the Index employs rules for selecting the According to the Registration prices of VIX Futures Contracts are Index Components and a formula to Statement, if a Fund is successful in based on the current expectation of calculate a level for the Index from the meeting its objective, its value (before what the expected 30-day volatility will prices of these components. fees and expenses) should gain be at a particular time in the future (on Specifically, the Index Components approximately as much on a percentage the expiration date). For example, a VIX represent the prices of the two near-term basis as the level of its corresponding Futures Contract purchased in March VIX futures months, replicating a Index when the Index rises. Conversely, that expires in May, in effect, is a position that rolls the nearest month its value (before fees and expenses) forward contract on what the level of VIX Futures Contract to the next month should lose approximately as much on the VIX, as a measure of 30-day implied VIX Futures Contract on a daily basis in a percentage basis as the level of its volatility of the S&P 500, will be on the equal fractional amounts. This results in corresponding Index when the Index May expiration date. The forward a constant weighted average maturity of declines. Each Fund acquires exposure volatility reading of the VIX may not one month. The roll period begins on through VIX futures contracts traded on correlate directly to the current the Tuesday prior to the monthly CFE the Cboe Futures Exchange (‘‘VIX volatility reading of the VIX because the VIX Futures Contracts settlement date Futures Contracts’’) (‘‘CFE’’), such that implied volatility of the S&P 500 at a and runs through the Tuesday prior to each Fund typically has exposure future expiration date may be different the subsequent month’s CFE VIX intended to approximate the benchmark from the current implied volatility of Futures Contract settlement date. The S&P 500 VIX Mid Term Futures at the time of its net asset value the S&P 500. To illustrate, on December Index also employs rules for selecting (‘‘NAV’’) calculation.14 4, 2019, the VIX closed at a price of 14.8 the Index Components and a formula to According to the Registration and the price of the February 2020 VIX calculate the level of the Index from the Statement, each Fund is not actively Futures Contracts expiring on February prices of these components. Currently, managed by traditional methods, which 19, 2020 was 18.125. In this example, typically involve effecting changes in the price of the VIX represented the 30- the Index Components represent the the composition of a portfolio on the day implied, or ‘‘spot,’’ volatility (the prices for four contract months of VIX basis of judgments relating to economic, volatility expected for the period from Futures Contracts, representing a financial and market considerations December 5, 2019 to January 5, 2020) of market-based estimation of constant with a view toward obtaining positive the S&P 500 and the February 2020 VIX maturity, five month forward implied results under all market conditions. Futures Contracts represented forward VIX values. The S&P 500 VIX Mid-Term Rather, each Fund seeks to remain fully implied volatility (the volatility Futures Index measures the return from invested at all times in investment expected for the period from February a rolling long position in the fourth, positions that, in combination, provide 19 to March 19, 2020) of the S&P 500. fifth, sixth and seventh month VIX exposure to its Index consistent with its Futures Contracts, and rolls investment objective, even during The S&P 500 VIX Short-Term Futures continuously throughout each month periods in which that benchmark is flat Index and S&P 500 VIX Mid-Term while maintaining positions in the fifth or moving in a manner which causes the Futures Index and sixth month contracts. This results value of a Fund to decline. According to the Registration in a constant weighted average maturity In seeking to achieve each Fund’s Statement, the Indexes act as a measure of five months. investment objective, the Sponsor uses of the implied volatility of the S&P 500 Calculation of the Indexes a mathematical approach to investing. as reflected by the price of certain VIX Using this approach, the Sponsor Futures Contracts (the ‘‘Index The level of each Index is calculated determines the type, quantity and mix Components’’), with the price of each in accordance with the method of investment positions that the Sponsor VIX Futures Contract reflecting the described in the Registration Statement. believes in combination should produce The level of each Index will be daily returns consistent with such 15 VIX is the ticker symbol for the Cboe Volatility published at least every 15 seconds both Fund’s objective. The Sponsor relies Index, a popular measure of implied volatility. The in real time from 9:30 a.m. to 4:00 p.m., upon a pre-determined model to goal of the VIX is to estimate the implied volatility E.T. and at the close of trading on each of the S&P 500 over the next 30 days. A relatively Business Day 16 by Bloomberg L.P. and generate orders that result in high level of the VIX corresponds to a more volatile repositioning the Funds’ investments in U.S. equity market as expressed by more costly Reuters. accordance with their respective options on the S&P 500 Index. The VIX represents one measure of the market’s expectation of over the 16 A ‘‘Business Day’’ means any day other than a investment objectives. next 30 day period. It is a blend of prices for a range day when any of BZX, Cboe, CFE or other exchange of options on the S&P 500 Index. The formula material to the valuation or operation of the Funds, 14 Terms relating to the Funds, the Shares and the utilizes current market prices for a series of out-of- or the calculation of the VIX, options contracts Indexes referred to, but not defined, herein are the-money calls and puts for the near and next-term underlying the VIX, VIX Futures Contracts or the defined in the Registration Statement. expirations. Indexes is closed for regular trading.

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The Index Components comprising as such, neither the Funds nor the appropriate ranges, for each of the four each Index represent the prices of Indexes are expected to track the VIX. previous calendar quarters. The closing certain futures contracts on the VIX. prices and settlement prices of the Index Purchases and Redemptions of Creation Each Index takes a daily rolling long Components are also readily available Units position in contracts of specified from the websites of CFE (http:// maturities and is intended to reflect the The Funds will create and redeem www.cfe.cboe.com), automated returns that are potentially available Shares from time to time in one or more quotation systems, published or other through an unleveraged investment in Creation Units. A Creation Unit is a public sources, or on-line information those contracts. The S&P 500 VIX Short- block of 25,000 Shares. Except when services such as Bloomberg or Reuters. Term Futures Index measures the return aggregated in Creation Units, the Shares Complete real-time data for component from a rolling long position in the first are not redeemable securities. futures underlying the Indexes is and second month VIX Futures On any Business Day, an authorized available by subscription from Reuters Contracts. The Index rolls continuously participant may place an order with the and Bloomberg. Specifically, the level of throughout each month from the first Distributor to create one or more each Index will be published at least month VIX Futures Contracts into the Creation Units.17 The total cash every 15 seconds both in real time from second month VIX Futures Contracts. payment required to create each 9:30 a.m. to 4:00 p.m. E.T. and at the The S&P 500 VIX Mid-Term Futures Creation Unit is the NAV of 25,000 close of trading on each Business Day by Index measures the return from a rolling Shares of the Funds on the purchase Bloomberg and Reuters. The CFE also long position in the fourth, fifth, sixth order date plus the applicable provides delayed futures information on and seventh month VIX Futures transaction fee. current and past trading sessions and Contracts. The Index rolls continuously The procedures by which an market news free of charge on its throughout each month from the fourth authorized participant can redeem one website. The specific contract month contract into the seventh month or more Creation Units mirror the specifications for component futures contract while maintaining positions in procedures for the purchase of Creation underlying the Indexes are also the fifth month and sixth month Units. On any Business Day, an available on such websites, as well as contracts. authorized participant may place an other financial informational sources. The Indexes roll on a daily basis. One order with the Distributor to redeem one Quotation and last-sale information of the effects of daily rolling is to or more Creation Units. The redemption regarding the Shares will be maintain a constant weighted average proceeds from a Fund consist of the disseminated through the facilities of the Consolidated Tape Association maturity for the underlying futures cash redemption amount. The cash (‘‘CTA’’). Information relating to VIX contracts. Unlike equities, which redemption amount is equal to the NAV Futures Contracts will be available from typically entitle the holder to a of the number of Creation Unit(s) of a the exchange on which such continuing stake in a corporation, Fund requested in the authorized instruments are traded. Pricing futures contracts normally specify a participant’s redemption order as of the information regarding VIX Futures certain date for the delivery of the time of the calculation of a Fund’s NAV Contracts is generally available through underlying asset or financial instrument on the redemption order date, less nationally recognized data services or, in the case of futures contracts applicable transaction fees. providers through subscription relating to indices such as the VIX, a Availability of Information Regarding agreements. Pricing information certain date for payment in cash of an the Shares regarding Cash and Cash Equivalents in amount determined by the level of the The NAV for the Funds’ Shares will which the Funds may invest is generally underlying index. The Indexes operate available through nationally recognized by selling, on a daily basis, Index be calculated by the Administrator once a day and will be disseminated daily to data services providers, such as Reuters Components with a nearby settlement and Bloomberg, through subscription date and purchasing Index Components all market participants at the same time.18 Pricing information will be agreements. with a longer-dated settlement date. The In addition, the Funds’ website at roll for each contract occurs on each available on the Fund’s website including: (1) The prior Business Day’s www.proshares.com will display the Business Day according to a pre- end of day closing Index levels, and determined schedule that has the effect reported NAV, the closing market price or the bid/ask price, daily trading NAV per share for the Funds. The of keeping constant the weighted Funds will provide website disclosure average maturity of the relevant futures volume, and a calculation of the premium and discount of the closing of portfolio holdings daily and will contracts. This process is known as include, as applicable, the notional market price or bid/ask price against the ‘‘rolling’’ a futures position, and each value (in U.S. dollars) of VIX Futures NAV; and (2) data in chart format Index is a ‘‘rolling index’’. The constant Contracts and characteristics of such displaying the frequency distribution of weighted average maturity for the instruments and Cash and Cash discounts and premiums of the daily futures underlying the S&P 500 VIX Equivalents, and amount of cash held in closing price against the NAV, within Short-Term Futures Index is one month the portfolio of the Funds. This website and for the futures underlying the S&P disclosure of the portfolio composition 17 Authorized participants have a cut-off time of 500 VIX Mid-Term Futures Index is five 2:00 p.m. E.T. to place creation and redemption of the Funds will occur at the same time months. orders. as the disclosure by the Funds of the Because the Indexes incorporate this 18 According to the Registration Statement, net portfolio composition to authorized process of rolling futures positions on a asset value means the total assets of the Funds participants so that all market including, but not limited to, all Cash and Cash daily basis, and the Funds, in general, Equivalents or other debt securities less total participants are provided portfolio also roll their positions on a daily basis, liabilities of the Funds, each determined on the composition information at the same the daily roll is not anticipated to be a basis of generally accepted accounting principles in time. Therefore, the same portfolio significant source of tracking error the United States, consistently applied under the information will be provided on the accrual method of accounting. Each Fund’s NAV is between either Fund and its respective calculated once each trading day as of 4 p.m. (E.T.), public website as well as in electronic Index. The Indexes are based on VIX or an earlier time as set forth on files provided to authorized Futures Contracts and not the VIX, and, www.proshares.com. participants. Accordingly, each investor

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will have access to the current portfolio halt or suspend trading in the Shares of trading of the Shares on the Exchange composition of the Funds through the the Funds. The Exchange will halt during all trading sessions and to deter Funds’ website. trading in the Shares under the and detect violations of Exchange rules In addition, in order to provide conditions specified in BZX Rule 11.18. and the applicable federal securities updated information relating to the Trading may be halted because of laws. All of the VIX Futures Contracts Funds for use by investors and market market conditions or for reasons that, in held by the Funds will trade on markets professionals, an updated Intraday the view of the Exchange, make trading that are a member of ISG or affiliated Indicative Value (‘‘IIV’’) will be in the Shares inadvisable. These may with a member of ISG or with which the calculated. The IIV is an indicator of the include: (1) The extent to which trading Exchange has in place a comprehensive value of the VIX Futures Contracts and is not occurring in the securities and/or surveillance sharing agreement.20 The Cash and/or Cash Equivalents less the financial instruments composing the Exchange, FINRA, on behalf of the liabilities of a Fund at the time the IIV daily disclosed portfolio of the Funds; Exchange, or both will communicate is disseminated. The IIV will be or (2) whether other unusual conditions regarding trading in the Shares and the calculated and widely disseminated by or circumstances detrimental to the underlying listed instruments, including one or more major market data vendors maintenance of a fair and orderly listed derivatives held by the Funds, every 15 seconds throughout Regular market are present. Trading in the with the ISG, other markets or entities Trading Hours.19 Shares also will be subject to Rule who are members or affiliates of the ISG, In addition, the IIV is published on 14.11(f)(4)(C)(ii), which sets forth or with which the Exchange has entered the Exchange’s website and is available circumstances under which Shares of a into a comprehensive surveillance through on-line information services Fund may be halted. sharing agreement. In addition, the such as Bloomberg and Reuters. The Exchange represents that the Exchange or FINRA may obtain The IIV disseminated during Regular Exchange may halt trading in the Shares information regarding trading in the Trading Hours should not be viewed as of a Fund during the day in which an Shares and the underlying listed an actual real time update of the NAV, interruption to the dissemination of the instruments, including listed which is calculated only once a day. IIV, the value of an Index, the VIX or the derivatives, held by the Funds from The IIV also should not be viewed as a value of the underlying VIX Futures markets and other entities that are precise value of the Shares. Contracts occurs. If an interruption to members of ISG or with which the The Exchange believes that the dissemination of the IIV, the value Exchange has in place a comprehensive dissemination of the IIV provides of an Index, the VIX or the value of the surveillance sharing agreement. All additional information regarding the underlying VIX Futures Contracts statements and representations made in Funds that is not otherwise available to persists past the trading day in which it this filing regarding index composition, the public and is useful to professionals occurred, the Exchange will halt trading description of the portfolio or reference and investors in connection with the no later than the beginning of the assets, limitations on portfolio holdings related Shares trading on the Exchange trading day following the interruption. or reference assets, dissemination and or the creation or redemption of such In addition, if the Exchange becomes availability of an index, reference asset, Shares. aware that the NAV with respect to the and IIVs, and the applicability of Additional information regarding the Shares is not disseminated to all market Exchange rules specified in this filing Funds and the Shares, including participants at the same time, it will halt shall constitute continued listing investment strategies, risks, creation and trading in the Shares until such time as requirements for the Funds. The issuer redemption procedures, fees, portfolio the NAV is available to all market has represented to the Exchange that it holdings disclosure policies, participants. will advise the Exchange of any failure distributions and taxes is included in Trading Rules by the Funds or the Shares to comply the Registration Statement. with the continued listing requirements, The Exchange deems the Shares to be and, pursuant to its obligations under Initial and Continued Listing equity securities, thus rendering trading Section 19(g)(1) of the Act, the Exchange The Shares of each Fund will conform in the Shares subject to the Exchange’s will surveil for compliance with the to the initial and continued listing existing rules governing the trading of continued listing requirements. If the criteria under BZX Rule 14.11(f)(4). The equity securities. The Exchange will Funds or the Shares are not in Exchange represents that, for initial and allow trading in the Shares during all compliance with the applicable listing continued listing, the Funds and the trading sessions on the Exchange and requirements, the Exchange will Trust must be in compliance with Rule has the appropriate rules to facilitate commence delisting procedures under 10A–3 under the Act. A minimum of transactions in the Shares during all Exchange Rule 14.12. In addition, the 100,000 Shares of each Fund will be trading sessions. As provided in BZX Exchange also has a general policy outstanding at the commencement of Rule 11.11(a), the minimum price prohibiting the distribution of material, trading on the Exchange. The Exchange variation for quoting and entry of orders non-public information by its will obtain a representation from the in securities traded on the Exchange is employees. $0.01, with the exception of securities issuer of the Shares that the NAV per Information Circular Share for each Fund will be calculated that are priced less than $1.00, for daily and will be made available to all which the minimum price variation for Prior to the commencement of market participants at the same time. order entry is $0.0001. trading, the Exchange will inform its Surveillance members in an Information Circular of Trading Halts the special characteristics and risks Trading of the Shares through the With respect to trading halts, the Exchange will be subject to the 20 Exchange may consider all relevant For a list of the current members and affiliate Exchange’s surveillance procedures for members of ISG, see www.isgportal.com. The factors in exercising its discretion to derivative products, including Trust Exchange notes that not all components of the Fund’s holdings may trade on markets that are 19 As defined in Rule 1.5(w), the term ‘‘Regular Issued Receipts. The Exchange believes members of ISG or with which the Exchange has in Trading Hours’’ means the time between 9:30 a.m. that its surveillance procedures are place a comprehensive surveillance sharing and 4:00 p.m. E.T. adequate to properly monitor the agreement.

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associated with trading the Shares. prevent fraudulent and manipulative disseminated by one or more major Specifically, the Information Circular acts and practices in that the Shares will market data vendors at least every 15 will discuss the following: (1) The be listed and traded on the Exchange seconds during Regular Trading Hours. procedures for purchases and pursuant to the initial and continued On each Business Day, before redemptions of Shares in Creation Units listing criteria in Exchange Rule commencement of trading in Shares (and that Shares are not individually 14.11(f). The Exchange believes that its during Regular Trading Hours, the redeemable); (2) BZX Rule 3.7, which surveillance procedures are adequate to Funds will disclose on their website the imposes suitability obligations on properly monitor the trading of the holdings that will form the basis for Exchange members with respect to Shares on the Exchange during all each Fund’s calculation of NAV at the recommending transactions in the trading sessions and to deter and detect end of the Business Day. Pricing Shares to customers; (3) how violations of Exchange rules and the information will be available on the information regarding the IIV and each applicable federal securities laws. If the Funds’ website including: (1) The prior Fund’s holdings is disseminated; (4) the Sponsor to the Trust issuing the Trust Business Day’s reported NAV, the risks involved in trading the Shares Issued Receipts is affiliated with a closing market price or the bid/ask outside of Regular Trading Hours when broker-dealer, such Sponsor to the Trust price, daily trading volume, and a an updated IIV will not be calculated or shall erect and maintain a ‘‘fire wall’’ calculation of the premium and publicly disseminated; (5) the between the Sponsor and the broker- discount of the closing market price or requirement that members deliver a dealer with respect to access to bid/ask price against the NAV; and (2) prospectus to investors purchasing information concerning the composition data in chart format displaying the newly issued Shares prior to or and/or changes to the Funds’ portfolios. frequency distribution of discounts and concurrently with the confirmation of a The Sponsor is not a broker-dealer, but premiums of the daily closing price transaction; and (6) trading information. is affiliated with a broker-dealer dealer against the NAV, within appropriate In addition, the Information Circular and has implemented and will maintain ranges, for each of the four previous will advise members, prior to the a ‘‘fire wall’’ with respect to such calendar quarters. Additionally, commencement of trading, of the broker-dealer regarding access to information regarding market price and prospectus delivery requirements information concerning the composition trading of the Shares will be continually applicable to the Funds. Members and/or changes to the portfolio. In the available on a real-time basis throughout purchasing Shares from the Funds for event that (a) the Sponsor becomes a the day on brokers’ computer screens resale to investors will deliver a broker-dealer or newly affiliated with a and other electronic services, and prospectus to such investors. The broker-dealer, or (b) any new sponsor is quotation and last sale information for Information Circular will also discuss a broker-dealer or becomes affiliated the Shares will be available on the any exemptive, no-action and with a broker-dealer, it will implement facilities of the CTA. The website for the interpretive relief granted by the and maintain a fire wall with respect to Funds will include a form of the Commission from any rules under the its relevant personnel or such broker- prospectus for each Fund and additional Act. dealer affiliate, as applicable, regarding data relating to NAV and other In addition, the Information Circular access to information concerning the applicable quantitative information. will reference that the Funds are subject composition and/or changes to the Trading in Shares of the Funds will be to various fees and expenses described portfolio, and will be subject to halted under the conditions specified in in the Registration Statement. The procedures designed to prevent the use Exchange Rule 11.18. Trading may also Information Circular will also disclose and dissemination of material non- be halted because of market conditions the trading hours of the Shares of the public information regarding the or for reasons that, in the view of the Funds and the applicable NAV portfolio. The Exchange, FINRA, on Exchange, make trading in the Shares calculation time for the Shares. The behalf of the Exchange, or both may inadvisable. Finally, trading in the Information Circular will disclose that obtain information regarding trading in Shares will be subject to information about the Shares of the the Shares and the underlying VIX 14.11(f)(4)(C)(ii), which sets forth circumstances under which Shares of Funds will be publicly available on the Futures Contracts via the ISG from other the Funds may be halted. In addition, as Funds’ website. exchanges who are members or affiliates noted above, investors will have ready of the ISG or with which the Exchange 2. Statutory Basis access to information regarding the has entered into a comprehensive The Exchange believes that the Funds’ holdings, the Indexes, the IIV, surveillance sharing agreement. In proposal is consistent with Section 6(b) and quotation and last sale information addition, the Exchange also has a of the Act 21 in general and Section for the Shares. 6(b)(5) of the Act 22 in particular in that general policy prohibiting the Quotation and last-sale information it is designed to prevent fraudulent and distribution of material, non-public regarding the Shares will be manipulative acts and practices, to information by its employees. disseminated through the facilities of promote just and equitable principles of The proposed rule change is designed the CTA. Quotation and last-sale trade, to foster cooperation and to promote just and equitable principles information regarding VIX Futures coordination with persons engaged in of trade and to protect investors and the Contracts will be available from the facilitating transactions in securities, to public interest in that the Exchange will exchanges on which such instruments remove impediments to and perfect the obtain a representation from the issuer are traded. Pricing information mechanism of a free and open market of the Shares that the NAV will be regarding Cash and Cash Equivalents in and a national market system and, in calculated daily and that the NAV and which the Funds will invest is generally general, to protect investors and the the Funds’ holdings will be made available through nationally recognized public interest. available to all market participants at data services providers, such as Reuters The Exchange believes that the the same time. In addition, a large and Bloomberg, through subscription proposed rule change is designed to amount of information is publicly agreements. available regarding the Funds and the The proposed rule change is designed 21 15 U.S.C. 78f. Shares, thereby promoting market to perfect the mechanism of a free and 22 15 U.S.C. 78f(b)(5). transparency. Moreover, the IIV will be open market and, in general, to protect

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investors and the public interest in that A proposed rule change filed under Paper Comments it will facilitate the listing and trading Rule 19b–4(f)(6) 25 normally does not • of exchange-traded products that will become operative for 30 days after the Send paper comments in triplicate enhance competition among market date of the filing. However, pursuant to to Secretary, Securities and Exchange participants, to the benefit of investors Rule 19b–4(f)(6)(iii),26 the Commission Commission, 100 F Street NE, and the marketplace. As noted above, may designate a shorter time if such Washington, DC 20549–1090. the Exchange has in place surveillance action is consistent with the protection All submissions should refer to File of investors and the public interest. The procedures relating to trading in the Number SR–CboeBZX–2020–092. This Exchange has asked the Commission to Shares and may obtain information via file number should be included on the ISG from other exchanges that are waive the 30-day operative delay so that subject line if email is used. To help the members of ISG or with which the the proposal may become operative Commission process and review your Exchange has entered into a immediately upon filing. The Exchange comprehensive surveillance sharing states that waiver of the 30-day comments more efficiently, please use agreement. In addition, as noted above, operative delay will allow the Funds to only one method. The Commission will investors will have ready access to transfer listing to the Exchange as soon post all comments on the Commission’s information regarding each Fund’s as is practicable and minimize the internet website (http://www.sec.gov/ holdings, the IIV, and quotation and last amount of time that the Funds’ listing rules/sro.shtml). Copies of the sale information for the Shares. venue will be in transition. The Funds submission, all subsequent For the above reasons, the Exchange have previously been approved by the amendments, all written statements believes that the proposed rule change Commission to list and trade on NYSE with respect to the proposed rule is consistent with the requirements of Arca, Inc.27 The Exchange states that change that are filed with the Section 6(b)(5) of the Act. this proposal is substantively identical Commission, and all written to the Prior Proposal and the issuer communications relating to the B. Self-Regulatory Organization’s represents that all material proposed rule change between the Statement on Burden on Competition representations contained within the Commission and any person, other than The Exchange does not believe that Prior Proposal remain true. For these those that may be withheld from the the proposed rule change will impose reasons, the Commission believes that public in accordance with the any burden on competition that is not waiver of the 30-day operative delay is provisions of 5 U.S.C. 552, will be consistent with the protection of necessary or appropriate in furtherance available for website viewing and investors and the public interest. of the purpose of the Act. The Exchange printing in the Commission’s Public notes that the proposed rule change, Accordingly, the Commission waives Reference Room, 100 F Street NE, rather will facilitate the transfer from the 30-day operative delay and Washington, DC 20549 on official Arca and listing of additional exchange- designates the proposed rule change 28 business days between the hours of traded products on the Exchange, which operative upon filing. will enhance competition among listing At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of the venues, to the benefit of issuers, filing of such proposed rule change, the filing also will be available for investors, and the marketplace more Commission summarily may inspection and copying at the principal broadly. temporarily suspend such rule change if office of the Exchange. All comments it appears to the Commission that such received will be posted without change. C. Self-Regulatory Organization’s action is necessary or appropriate in the Persons submitting comments are Statement on Comments on the public interest, for the protection of cautioned that we do not redact or edit Proposed Rule Change Received From investors, or otherwise in furtherance of personal identifying information from Members, Participants, or Others the purposes of the Act. comment submissions. You should The Exchange has neither solicited IV. Solicitation of Comments submit only information that you wish nor received written comments on the to make available publicly. All proposed rule change. Interested persons are invited to submit written data, views, and submissions should refer to File III. Date of Effectiveness of the arguments concerning the foregoing, Number SR–CboeBZX–2020–092 and Proposed Rule Change and Timing for including whether the proposed rule should be submitted on or before Commission Action change is consistent with the Act. January 12, 2021. Because the foregoing proposed rule Comments may be submitted by any of For the Commission, by the Division change does not: (i) Significantly affect the following methods: of Trading and Markets, pursuant to 29 the protection of investors or the public Electronic Comments delegated authority. interest; (ii) impose any significant • Use the Commission’s internet J. Matthew DeLesDernier, burden on competition; and (iii) become comment form (http://www.sec.gov/ Assistant Secretary. operative for 30 days from the date on rules/sro.shtml); or [FR Doc. 2020–28149 Filed 12–21–20; 8:45 am] which it was filed, or such shorter time • Send an email to rule-comments@ BILLING CODE 8011–01–P as the Commission may designate, it has sec.gov. Please include File Number SR– become effective pursuant to Section CboeBZX–2020–092 on the subject line. 19(b)(3)(A) of the Act 23 and Rule 19b– 24 4(f)(6) thereunder. as designated by the Commission. The Exchange has satisfied this requirement. 23 15 U.S.C. 78s(b)(3)(A). 25 17 CFR 240.19b–4(f)(6). 24 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 26 17 CFR 240.19b–4(f)(6)(iii). 4(f)(6)(iii) requires a self-regulatory organization to 27 See supra note 10. give the Commission written notice of its intent to 28 For purposes only of waiving the 30-day file the proposed rule change, along with a brief operative delay, the Commission has also description and text of the proposed rule change, considered the proposed rule’s impact on at least five business days prior to the date of filing efficiency, competition, and capital formation. See of the proposed rule change, or such shorter time 15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE Rule 14.11(m)(2)(A), which provides proposals under Section 19(b) of the Act COMMISSION that the Exchange must file separate before listing and trading of a series of proposals under Section 19(b) of the Act Tracking Fund Shares. [Release No. 34–90686; File No. SR– The Shares will be offered by the CboeBZX–2020–090] before listing and trading of a series of Tracking Fund Shares. Trust, which was organized as a Self-Regulatory Organizations; Cboe The text of the proposed rule change Delaware statutory trust on November 6, BZX Exchange, Inc.; Notice of Filing is also available on the Exchange’s 2007. The Trust is registered with the and Immediate Effectiveness of a website (http://markets.cboe.com/us/ Commission as an open-end investment _ Proposed Rule To List and Trade equities/regulation/rule filings/bzx/), at company and has filed a registration Shares of the Invesco Real Assets ESG the Exchange’s Office of the Secretary, statement on behalf of the Funds on ETF and the Invesco US Large Cap and at the Commission’s Public Form N–1A with the Commission.7 Core ESG ETF, Each a Series of the Reference Room. Invesco Capital Management LLC (the Invesco Actively Managed Exchange- II. Self-Regulatory Organization’s ‘‘Adviser’’) will be the investment Traded Fund Trust, Under Rule Statement of the Purpose of, and adviser to the Funds. The Adviser is not 14.11(m) (Tracking Fund Shares) Statutory Basis for, the Proposed Rule registered as a broker-dealer, but is Change affiliated with broker-dealers. The December 16, 2020. Adviser represents that a fire wall exists Pursuant to Section 19(b)(1) of the In its filing with the Commission, the and will be maintained between the Securities Exchange Act of 1934 (the Exchange included statements respective personnel at the Adviser and ‘‘Act’’),1 and Rule 19b–4 thereunder,2 concerning the purpose of and basis for affiliated broker-dealers with respect to notice is hereby given that on December the proposed rule change and discussed access to information concerning the 15, 2020, Cboe BZX Exchange, Inc. (the any comments it received on the composition and/or changes to each ‘‘Exchange’’ or ‘‘BZX’’) filed with the proposed rule change. The text of these Fund’s portfolio and Tracking Basket.8 Securities and Exchange Commission statements may be examined at the Personnel who make decisions on a (the ‘‘Commission’’) the proposed rule places specified in Item IV below. The Fund’s portfolio composition and/or change as described in Items I and II Exchange has prepared summaries, set Tracking Basket or who have access to below, which Items have been prepared forth in sections A, B, and C below, of nonpublic information regarding the by the Exchange. The Commission is the most significant aspects of such Fund Portfolio 9 and/or the Tracking publishing this notice to solicit statements. Basket or changes thereto are subject to comments on the proposed rule change A. Self-Regulatory Organization’s procedures designed to prevent the use from interested persons. Statement of the Purpose of, and and dissemination of material non- I. Self-Regulatory Organization’s Statutory Basis for, the Proposed Rule public information regarding such Statement of the Terms of Substance of Change portfolio and/or Tracking Basket. The the Proposed Rule Change Funds’ sub-adviser, Invesco Advisers, 1. Purpose Inc. (the ‘‘Sub-Adviser’’), is not The Exchange proposes to list and The Exchange proposes to list and registered as a broker-dealer but is trade shares of the Invesco Real Assets trade shares of the Invesco Real Assets affiliated with broker-dealers. Sub- ESG ETF and the Invesco US Large Cap ESG ETF and the Invesco US Large Cap Adviser personnel who make decisions Core ESG ETF pursuant to Rule Core ESG ETF pursuant to Rule regarding a Fund’s Fund Portfolio and/ 3 14.11(m), Tracking Fund Shares, which 14.11(m), Tracking Fund Shares,5 which or Tracking Basket or who have access are securities issued by an actively are securities issued by an actively to information regarding the Fund managed open-end management managed open-end management Portfolio and/or the Tracking Basket or 4 investment company. The Exchange is investment company.6 The Exchange is changes thereto are subject to submitting this proposal as required by submitting this proposal as required by procedures designed to prevent the use Rule 14.11(m)(2)(A), which provides and dissemination of material 1 15 U.S.C. 78s(b)(1). that the Exchange must file separate nonpublic information regarding the 2 17 CFR 240.19b–4. 3 Fund’s portfolio and/or Tracking Basket. As defined in Rule 14.11(m)(3)(A), the term 5 As defined in Rule 14.11(m)(3)(A), the term ‘‘Tracking Fund Share’’ means a security that: (i) ‘‘Tracking Fund Share’’ means a security that: (i) 7 Represents an interest in an investment company Represents an interest in an investment company The Trust is registered under the 1940 Act. On (‘‘Investment Company’’) registered under the (‘‘Investment Company’’) registered under the September 25, 2020, the Trust filed post-effective Investment Company Act of 1940 (the ‘‘1940 Act’’) Investment Company Act of 1940 (the ‘‘1940 Act’’) amendments to its registration statement on Form organized as an open-end management investment organized as an open-end management investment N–1A relating to each Fund (File No. 811–22148) company, that invests in a portfolio of securities company, that invests in a portfolio of securities (the ‘‘Registration Statement’’). The descriptions of selected by the Investment Company’s investment selected by the Investment Company’s investment the Funds and the Shares contained herein are adviser consistent with the Investment Company’s adviser consistent with the Investment Company’s based, in part, on information included in the investment objectives and policies; (ii) is issued in investment objectives and policies; (ii) is issued in Registration Statement. The Commission has issued a specified aggregate minimum number in return for a specified aggregate minimum number in return for an order granting certain exemptive relief to the a deposit of a specified Tracking Basket and/or a a deposit of a specified Tracking Basket and/or a Trust (the ‘‘Exemptive Order’’) under the 1940 Act. cash amount with a value equal to the next cash amount with a value equal to the next See Investment Company Act of 1940 Release No. determined Net Asset Value (‘‘NAV’’); (iii) when determined Net Asset Value (‘‘NAV’’); (iii) when 34076 (October 27, 2020). aggregated in the same specified minimum number, aggregated in the same specified minimum number, 8 As defined in Rule 14.11(m)(3)(E), the term may be redeemed at a holder’s request, which may be redeemed at a holder’s request, which ‘‘Tracking Basket’’ means the identities and holder will be paid a specified Tracking Basket and/ holder will be paid a specified Tracking Basket and/ quantities of the securities and other assets or a cash amount with a value equal to the next or a cash amount with a value equal to the next included in a basket that is designed to closely track determined NAV; and (iv) the portfolio holdings for determined NAV; and (iv) the portfolio holdings for the daily performance of the Fund Portfolio, as which are disclosed within at least 60 days which are disclosed within at least 60 days provided in the exemptive relief under the 1940 Act following the end of every fiscal quarter. following the end of every fiscal quarter. applicable to a series of Tracking Fund Shares. 4 Rule 14.11(m) was approved along with the 6 Rule 14.11(m) was approved along with the 9 As defined in Rule 14.11(m)(3)(B), the term listing and trading of three series of Tracking Fund listing and trading of three series of Tracking Fund ‘‘Fund Portfolio’’ means the identities and Shares by the Commission on May 15, 2020. See Shares by the Commission on May 15, 2020. See quantities of the securities and other assets held by Securities Exchange Act Release No. 88887 (May Securities Exchange Act Release No. 88887 (May the Investment Company that will form the basis for 15, 2020), 85 FR 30990 (May 21, 2020) (the 15, 2020), 85 FR 30990 (May 21, 2020) (the the Investment Company’s calculation of net asset ‘‘Tracking Fund Shares Approval Order’’). ‘‘Tracking Fund Shares Approval Order’’). value at the end of the business day.

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In the event that (a) the Adviser or a requirements in the Exemptive Relief.11 Invesco US Large Cap Core ESG ETF Sub-Adviser becomes registered as a Any foreign common stocks held by the The Fund’s holdings will conform to broker-dealer or newly affiliated with a Fund will be traded on an exchange that the permissible investments as set forth broker-dealer; or (b) any new adviser or is a member of the Intermarket in the Exemptive Relief and the 12 sub-adviser is a registered broker-dealer Surveillance Group (‘‘ISG’’) or with holdings will be consistent with all or becomes newly affiliated with a which the Exchange has in place a requirements in the Exemptive Relief.13 broker-dealer; it will implement and comprehensive surveillance sharing Any foreign common stocks held by the maintain a fire wall with respect to its agreement. Fund will be traded on an exchange that The Fund seeks capital appreciation relevant personnel or such broker-dealer is a member of ISG or with which the as its investment objective with a affiliate, as applicable, regarding access Exchange has in place a comprehensive secondary objective of current income. to information concerning the surveillance sharing agreement.14 composition and/or changes to the Fund The Fund seeks to achieve its The Fund seeks capital appreciation Portfolio and/or Tracking Basket, and investment objective by investing as its investment objective. The Fund will be subject to procedures designed primarily in exchange-traded equity seeks to achieve its investment objective to prevent the use and dissemination of securities of ‘‘real assets’’ companies (as by investing, under Normal Market identified below) located in North material non-public information Conditions,15 at least 80% of its net America that meet high environmental, regarding such portfolio and/or assets (plus any borrowings for social and governance (‘‘ESG’’) Tracking Basket. Any person or entity, investment purposes) in exchange- standards, as determined by the Sub- including any service provider for the traded equity securities of U.S. large Adviser. Real assets are characterized by Funds, who has access to nonpublic capitalization issuers. Additionally, the having physical attributes, including information regarding a Fund Portfolio Fund seeks to achieve its investment real estate, infrastructure, natural or Tracking Basket or changes thereto objective by investing mainly in for a Fund or Funds will be subject to resources and timber. The Sub-Adviser common stock of U.S. companies that procedures designed to prevent the use considers ‘‘real assets’’ companies to be meet high ESG standards, as determined and dissemination of material those that own, operate, or derive a by the Sub-Adviser. nonpublic information regarding the significant portion of their value from applicable Fund Portfolio or Tracking real assets or the production thereof. In Trading Halts Basket or changes thereto. Further, any selecting equity securities for the Fund, Rule 14.11(m)(4)(B)(iv) provides that such person or entity that is registered the investment team uses fundamental (a) the Exchange may consider all as a broker-dealer or affiliated with a analysis to identify securities that relevant factors in exercising its broker-dealer, has erected and will adhere to ESG principals described discretion to halt trading in a series of maintain a ‘‘fire wall’’ between the herein and are viewed to have relatively Tracking Fund Shares. Trading may be person or entity and the broker-dealer favorable long-term prospects. Some of halted because of market conditions or with respect to access to information the factors that the investment team for reasons that, in the view of the concerning the composition and/or considers include, but are not limited Exchange, make trading in the Shares changes to such Fund Portfolio or to: Assessment of long term inadvisable. These may include: (i) The Tracking Basket. Each Fund intends to fundamental growth, sustainable extent to which trading is not occurring qualify each year as a regulated dividends, attractive physical and in the securities and/or the financial investment company under Subchapter locational attributes and capital instruments composing the Tracking M of the Internal Revenue Code of 1986, structure viability. As a result of the Basket or Fund Portfolio; or (ii) whether as amended. analysis, the investment team generally other unusual conditions or The Shares will conform to the initial favors companies with a balanced mix circumstances detrimental to the and continued listing criteria under of the factors above. The investment Rule 14.11(m) as well as all terms in the team will consider selling a security 13 Pursuant to the Exemptive Relief, the Fund’s Exemptive Order. The Exchange when it no longer meets the investment permissible investments include only the following represents that, for initial and/or criteria, or a more attractive alternative instruments: ETFs, exchange-traded notes, continued listing, each Fund will be in is identified. The Fund may invest in exchange-traded common stocks, foreign common stocks, exchange-traded preferred stocks, ADRs, compliance with Rule 10A–3 under the companies of any market capitalization. 10 exchange-traded real estate investment trusts, Act. A minimum of 100,000 Shares of exchange-traded commodity pools, exchange-traded each Fund will be outstanding at the 11 Pursuant to the Exemptive Relief, the Fund’s metals trusts, exchange-traded currency trusts, and commencement of trading on the permissible investments include only the following exchange-traded futures that trade Exchange. The Exchange will obtain a instruments: ETFs, exchange-traded notes, contemporaneously with the Shares, as well as cash representation from the issuer of the exchange-traded common stocks, common stocks and cash equivalents. With the exception of foreign listed on a foreign exchange that trade on such common stocks and cash and cash equivalents, all Shares of each Fund that the NAV per exchange contemporaneously with the Shares holdings of the Fund will be listed on a U.S. share of each Fund will be calculated (‘‘foreign common stocks’’), exchange-traded national securities exchange. daily and will be made available to all preferred stocks, exchange-traded American 14 For a list of the current members of ISG, see market participants at the same time. Depositary Receipts (‘‘ADRs’’), exchange-traded real www.isgportal.com. The Exchange notes that all estate investment trusts, exchange-traded components, except the cash and cash equivalent Each Fund’s investments will be commodity pools, exchange-traded metals trusts, components, of the Funds may trade on markets consistent with its investment objective exchange-traded currency trusts, and exchange- that are members of ISG or with which the and will not be used to enhance traded futures that trade contemporaneously with Exchange has in place a comprehensive leverage. the Shares, as well as cash and cash equivalents. surveillance sharing agreement. With the exception of foreign common stocks and 15 As defined in Rule 14.11(m)(3)(D), the term Invesco Real Assets ESG ETF cash and cash equivalents, all holdings of the Fund ‘‘Normal Market Conditions’’ includes, but is not will be listed on a U.S. national securities exchange. limited to, the absence of trading halts in the The Fund’s holdings will conform to 12 For a list of the current members of ISG, see applicable financial markets generally; operational the permissible investments as set forth www.isgportal.com. The Exchange notes that all issues (e.g., systems failure) causing dissemination in the Exemptive Relief and the components, except the cash and cash equivalent of inaccurate market information; or force majeure components, of the Funds may trade on markets type events such as natural or manmade disaster, holdings will be consistent with all that are members of ISG or with which the act of God, armed conflict, act of terrorism, riot or Exchange has in place a comprehensive labor disruption or any similar intervening 10 See 17 CFR 240.10A–3. surveillance sharing agreement. circumstance.

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maintenance of a fair and orderly traded, which includes all eligible example, if the Adviser determines that market are present; and (b) if the instruments except cash and cash a new Tracking Basket would reduce the Exchange becomes aware that one of the equivalents, will be available on the variability of return differentials following is not being made available to exchanges on which they are traded and between the Tracking Basket and the all market participants at the same time: through subscription services. Intraday Fund when balanced against the cost to The net asset value, the Tracking Basket, pricing information for cash equivalents trade the new Tracking Basket, or the Fund Portfolio with respect to a will be available through subscription rebalancing may be appropriate. The series of Tracking Fund Shares, then the services and/or pricing services. The Adviser will periodically review the Exchange will halt trading in such series Exchange notes that each Fund’s NAV Tracking Basket parameters and until such time as the net asset value, will form the basis for creations and Tracking Basket performance and the Tracking Basket, or the Fund redemptions for the Funds and creations process. Portfolio is available to all market and redemptions will work in a manner As noted above, each Fund will also participants, as applicable. substantively identical to that of series disclose the entirety of its portfolio of Managed Fund Shares. The Adviser Trading Rules holdings, including the name, identifier, expects that the Shares of the Funds market value and weight of each The Exchange deems Tracking Fund will generally be created and redeemed security and instrument in the portfolio, Shares to be equity securities, thus in-kind, with limited exceptions. The at a minimum within at least 60 days rendering trading in the Shares subject names and quantities of the instruments following the end of every fiscal quarter. to the Exchange’s existing rules that constitute the basket of securities The Exchange notes that the concept of governing the trading of equity for creations and redemptions will be the Tracking Basket employed under 16 securities. As provided in Rule the same as a Fund’s Tracking Basket, this structure is designed to provide 14.11(m)(2)(C), the minimum price except to the extent purchases and investors with the traditional benefits of variation for quoting and entry of orders redemptions are made entirely or in part ETFs while protecting the Funds from in securities traded on the Exchange is on a cash basis. In the event that the the potential for front running or free $0.01. The Exchange has appropriate value of the Tracking Basket is not the riding of portfolio transactions, which rules to facilitate trading in Tracking same as a Fund’s NAV, the creation and could adversely impact the performance Fund Shares during all trading sessions. redemption baskets will consist of the of a Fund. Tracking Basket for the Proposed Funds securities included in the Tracking The Exchange believes that the Basket plus or minus an amount of cash For the Funds, the Tracking Basket particular instruments that may be equal to the difference between the NAV will consist of a combination of the included in each of the Fund’s and the value of the Tracking Basket, as Fund’s recently disclosed portfolio respective Fund Portfolio and Tracking further described below. holdings and representative ETFs. The Basket do not raise any concerns related The Tracking Basket will be Exchange notes that the Tracking Basket to the Tracking Baskets being able to constructed utilizing a covariance methodology used by the Fund is closely track the NAV of the Funds matrix based on an optimization process substantively identical to a proposal because such instruments include only to minimize deviations in the return of previously approved by the instruments that trade on an exchange the Tracking Basket relative to the Fund. 21 Commission.17 ETFs selected for contemporaneously with the Shares. The proprietary optimization process inclusion in the Tracking Basket will be In addition, each Fund’s Tracking mathematically seeks to minimize three consistent with the Fund’s objective and Basket will be optimized so that it key parameters that the Adviser believes selected based on certain criteria, reliably and consistently correlates to are important to the effectiveness of the including, but not limited to, liquidity, the performance of the Fund. assets under management, holding Tracking Basket as a hedge: Tracking The Adviser anticipates that the limits and compliance considerations. error (standard deviation of return returns between a Fund and its Representative ETFs can provide a differentials between the Tracking respective Tracking Basket will have a Basket and the Fund), turnover cost, and consistent relationship and that the useful mechanism to reflect a Fund’s 19 holdings’ exposures within the Tracking basket creation cost. Typically, the deviation in the returns between a Fund Basket without revealing a Fund’s exact Tracking Basket is expected to be and its Tracking Basket will be positions.18 Intraday pricing rebalanced on schedule with the public sufficiently small such that the Tracking information for all constituents of the disclosure of the Fund’s holdings; Basket will provide authorized Tracking Basket that are exchange- however, a new optimized Tracking participants, arbitrageurs, and certain Basket may be generated as frequently other market participants (collectively, 16 With respect to trading in Tracking Fund as daily, and therefore, rebalancing may ‘‘Market Makers’’) with a reliable Shares, all of the BZX Member obligations relating occur more frequently at the Adviser’s hedging vehicle that they can use to to product description and prospectus delivery discretion. In determining whether to effectuate low-risk arbitrage trades in requirements will continue to apply in accordance rebalance a new optimized Tracking with Exchange rules and federal securities laws, Fund Shares. The Exchange believes and the Exchange will continue to monitor its Basket, the Adviser will consider Members for compliance with such requirements. various factors, including liquidity of the Tracking Basket, i.e., the cost to put on the 17 See Tracking Fund Shares Approval Order. the securities in the Tracking Basket, hedge for the Authorized Participant, and (2) the 18 The set of ETFs that are ‘‘representative’’ to be tracking error, and the cost to create and cost of any adjustments that need to be made to the composition of the Tracking Basket, i.e., the cost to used in the Tracking Basket will depend on certain trade the Tracking Basket.20 For factors, including the Fund’s investment objective, the Authorized Participant to change or maintain past holdings, and benchmark, and may change the hedge position. The inclusion of the trading cost from time to time. For example, a U.S. diversified 19 Tracking error measures the deviations model in the optimization process is intended to fund benchmarked to a diversified U.S. index between the Tracking Basket and Fund. Turnover result in a Tracking Basket that is cost effective and would use liquid U.S. exchange-traded ETFs to cost and basket creation cost are measures of the liquid without compromising its tracking ability. capture size (large, mid or small capitalization), cost to create and maintain the Tracking Basket as 21 The Exchange notes that to the extent that the style (growth or value) and/or sector exposures in a hedge. Fund Portfolio or Tracking Basket include any the Fund’s portfolio. Leveraged and inverse ETFs 20 The Adviser uses a trading cost model to foreign common stocks, such securities will be will not be included in the Tracking Basket. ETFs develop estimates of costs to trade a new Tracking traded on an exchange that is a member of ISG or may constitute no more than 50% of the Tracking Basket. There are essentially two elements to this with which the Exchange has in place a Basket’s assets. cost: (1) The cost to purchase securities constituting comprehensive surveillance sharing agreement.

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that the disclosures provided by the Fund as may be required for other ETFs continued listing criteria required to be Funds will allow Market Makers to under Rule 6c–11 under the 1940 Act, met by such securities. understand the relationship between the as amended. Price information for the Rules 14.11(m)(4)(B)(iii) and (iv) performance of a Fund and its Tracking exchange-listed instruments held by the provide that the Exchange will consider Basket. Market Makers will be able to Funds, including both U.S. and non- the suspension of trading in and will estimate the value of and hedge U.S. listed equity securities and U.S. commence delisting proceedings for a positions in a Fund’s Shares, which the exchange-listed futures will be available Fund pursuant to Rule 14.12 under any Exchange believes will facilitate the through major market data vendors or of the circumstances described above arbitrage process and help ensure that securities exchanges listing and trading and that the Exchange may consider all the Fund’s Shares normally will trade at such securities. relevant factors in exercising its market prices close to their NAV. The The Exchange represents that the discretion to halt trading in a series of Exchange also believes that competitive Shares of the Funds will continue to Tracking Fund Shares. Trading may be market making, where traders are comply with all other requirements halted because of market conditions or looking to take advantage of differences applicable to Tracking Fund Shares, for reasons that, in the view of the in bid-ask spread, will aid in keeping including the dissemination of key Exchange, make trading in the Shares spreads tight. information such as the Tracking inadvisable. Basket, the Fund Portfolio, and NAV, Additionally, the Exchange believes 2. Statutory Basis suspension of trading or removal, that the requirements related to The Exchange believes that the trading halts, surveillance, minimum information protection enumerated proposal is consistent with Section 6(b) price variation for quoting and order under Rule 14.11(m)(2)(F) will act as a of the Act 22 in general and Section entry, an information circular informing strong safeguard against any misuse and 6(b)(5) of the Act 23 in particular in that members of the special characteristics improper dissemination of information it is designed to prevent fraudulent and and risks associated with trading in the related to a Fund Portfolio, the Tracking manipulative acts and practices, to Shares, and firewalls as set forth in the Basket, or changes thereto. The promote just and equitable principles of Rules applicable to Tracking Fund requirement that any person or entity, trade, to foster cooperation and Shares and the order approving such including a custodian, Reporting coordination with persons engaged in rules. Moreover, U.S.-listed equity Authority, distributor, or administrator, facilitating transactions in securities, to securities held by the Funds will trade who has access to nonpublic remove impediments to and perfect the on markets that are a member of ISG or information regarding the Fund mechanism of a free and open market with which the Exchange has in place Portfolio or the Tracking Basket or and a national market system and, in a comprehensive surveillance sharing changes thereto, must be subject to general, to protect investors and the agreement.24 All statements and procedures designed to prevent the use public interest. representations made in this filing and dissemination of material The Exchange notes that a significant regarding the description of the nonpublic information regarding the amount of information about each Fund portfolio or reference assets, limitations applicable Fund Portfolio or the and its Fund Portfolio will be publicly on portfolio holdings or reference assets, Tracking Basket or changes thereto will available at all times. Each Fund will dissemination and availability of act to prevent any individual or entity disclose the Tracking Basket, which is reference asset (as applicable), or the from sharing such information designed to closely track the daily applicability of Exchange listing rules externally. performance of the Fund Portfolio, on a specified in this filing shall constitute The Exchange believes that its daily basis. Each Fund will at a continued listing requirements for the surveillance procedures are adequate to minimum publicly disclose the entirety Shares. The issuer has represented to properly monitor the trading of the of its portfolio holdings, including the the Exchange that it will advise the Shares on the Exchange during all name, identifier, market value and Exchange of any failure by a Fund or trading sessions and to deter and detect weight of each security and instrument Shares to comply with the continued violations of Exchange rules and the in the portfolio within at least 60 days listing requirements, and, pursuant to applicable federal securities laws. following the end of every fiscal quarter its obligations under Section 19(g)(1) of Trading of the Shares through the in a manner consistent with normal the Act, the Exchange will surveil for Exchange will be subject to the disclosure requirements otherwise compliance with the continued listing Exchange’s surveillance procedures for applicable to open-end investment requirements. FINRA conducts certain derivative products, including Tracking companies registered under the 1940 cross-market surveillances on behalf of Fund Shares. If a Fund is not in Act. The website will include additional the Exchange pursuant to a regulatory compliance with the applicable listing quantitative information updated on a services agreement. The Exchange is requirements, the Exchange will daily basis, including, on a per Share responsible for FINRA’s performance commence delisting procedures under basis for each Fund, the prior business under this regulatory services Exchange Rule 14.12. In addition, the day’s NAV and the closing price or bid/ agreement. If a Fund is not in Exchange also has a general policy ask price at the time of calculation of compliance with the applicable listing prohibiting the distribution of material, such NAV, and a calculation of the requirements, the Exchange will non-public information by its premium or discount of the closing commence delisting procedures with employees. Any foreign common stocks price or bid/ask price against such NAV. respect to such Fund under Exchange held by the Fund will be traded on an The website will also disclose the Rule 14.12. exchange that is a member of ISG or percentage weight overlap between the The Exchange believes that the with which the Exchange has in place holdings of the Tracking Basket proposal is designed to prevent a comprehensive surveillance sharing compared to the Fund Holdings for the fraudulent and manipulative acts and agreement. All futures contracts that the prior business day and any information practices in that the Rules relating to Funds may invest in will be traded on regarding the bid/ask spread for each listing and trading of Tracking Fund a U.S. futures exchange. The Exchange Shares provide specific initial and or FINRA, on behalf of the Exchange, or 22 15 U.S.C. 78f. both, will communicate as needed 23 15 U.S.C. 78f(b)(5). 24 See supra note 14. regarding trading in the Shares,

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underlying U.S. exchange-listed equity line. The Exchange deems Tracking may designate a shorter time if such securities, and U.S. exchange-listed Fund Shares to be equity securities, thus action is consistent with the protection futures with other markets and other rendering trading in the Shares subject of investors and the public interest. The entities that are members of ISG, and the to the Exchange’s existing rules Exchange has asked the Commission to Exchange or FINRA, on behalf of the governing the trading of equity waive the 30-day operative delay. The Exchange, or both, may obtain trading securities. As provided in Rule proposed rule change is substantially information regarding trading such 14.11(m)(2)(C), the minimum price similar to other Tracking Fund Shares instruments from such markets and variation for quoting and entry of orders the Commission previously approved 29 other entities. In addition, the Exchange in securities traded on the Exchange is and does not raise any novel regulatory may obtain information regarding $0.01. issues. Accordingly, the Commission trading in the Shares, underlying equity For the above reasons, the Exchange waives the 30-day operative delay and securities, and U.S. exchange-listed believes that the proposed rule change designates the proposal operative upon futures from markets and other entities is consistent with the requirements of filing.30 that are members of ISG or with which Section 6(b)(5) of the Act. At any time within 60 days of the filing of the proposed rule change, the the Exchange has in place a B. Self-Regulatory Organization’s comprehensive surveillance sharing Commission summarily may Statement on Burden on Competition agreement. temporarily suspend such rule change if As provided in Rule 14.11(m)(2)(D), The Exchange does not believe that it appears to the Commission that such the Adviser will upon request make the proposed rule change will impose action is necessary or appropriate in the available to the Exchange and/or any burden on competition that is not public interest, for the protection of FINRA, on behalf of the Exchange, the necessary or appropriate in furtherance investors, or otherwise in furtherance of daily Fund Portfolio of each Fund. The of the purpose of the Act. Rather, the the purposes of the Act. If the Exchange believes that the ability to Exchange notes that the proposed rule Commission takes such action, the access the information on an as needed change will facilitate the listing of Commission will institute proceedings basis will provide it with sufficient several new series of actively-managed to determine whether the proposed rule information to perform the necessary exchange-traded products, thus change should be approved or regulatory functions associated with enhancing competition among both disapproved. listing and trading the Shares on the market participants and listing venues, IV. Solicitation of Comments Exchange, including the ability to to the benefit of investors and the monitor compliance with the initial and marketplace. Interested persons are invited to continued listing requirements as well submit written data, views, and C. Self-Regulatory Organization’s as the ability to surveil for manipulation arguments concerning the foregoing, Statement on Comments on the of the Shares. including whether the proposed rule In addition, Form N–PORT requires Proposed Rule Change Received From change is consistent with the Act. reporting of a fund’s complete portfolio Members, Participants, or Others Comments may be submitted by any of holdings on a position-by-position basis The Exchange has neither solicited the following methods: nor received written comments on the on a quarterly basis within 60 days after Electronic Comments fiscal quarter end. Investors can obtain proposed rule change. • Use the Commission’s internet a fund’s Statement of Additional III. Date of Effectiveness of the Information, its Shareholder Reports, its comment form (http://www.sec.gov/ Proposed Rule Change and Timing for rules/sro.shtml); or Form N–CSR, filed twice a year, and its Commission Action • Form N–CEN, filed annually. A fund’s Send an email to rule-comments@ SAI and Shareholder Reports are Because the foregoing proposed rule sec.gov. Please include File Number SR– available free upon request from the change does not: (i) Significantly affect CboeBZX–2020–090 on the subject line. Investment Company, and those the protection of investors or the public Paper Comments documents and the Form N–PORT, interest; (ii) impose any significant • Send paper comments in triplicate Form N–CSR, and Form N–CEN may be burden on competition; and (iii) become to Secretary, Securities and Exchange viewed on-screen or downloaded from operative for 30 days from the date on Commission, 100 F Street NE, the Commission’s website at which it was filed, or such shorter time Washington, DC 20549–1090. www.sec.gov. The Exchange also notes as the Commission may designate, it has become effective pursuant to Section that the Exemptive Relief provides that 29 25 See Securities Exchange Act Release No. 88887 the Funds will comply with Regulation 19(b)(3)(A) of the Act and Rule 19b– (May 15, 2020), 85 FR 30990 (May 21, 2020) (SR– Fair Disclosure, which prohibits 4(f)(6) thereunder.26 CboeBZX–2019–107) (Notice of Filing of selective disclosure of any material non- A proposed rule change filed under Amendment No. 5 and Order Granting Accelerated Rule 19b–4(f)(6) 27 normally does not Approval of a Proposed Rule Change, as Modified public information, which otherwise do by Amendment No. 5, to Adopt Rule 14.11(m), not apply to issuers of Tracking Fund become operative for 30 days after the Tracking Fund Shares, and to List and Trade Shares Shares. date of the filing. However, pursuant to of the Fidelity Blue Chip Value ETF, Fidelity Blue Information regarding market price Rule 19b–4(f)(6)(iii),28 the Commission Chip Growth ETF, and Fidelity New Millennium ETF). See also Securities Exchange Act Release No. and trading volume of the Shares will be 90530 (November 30, 2020), 85 FR 78366 25 continually available on a real-time 15 U.S.C. 78s(b)(3)(A). (December 4, 2020) (SR–CboeBZX–2020–085) basis throughout the day on brokers’ 26 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– (Notice of Filing and Immediate Effectiveness of a computer screens and other electronic 4(f)(6)(iii) requires a self-regulatory organization to Proposed Rule Change Relating to List and Trade give the Commission written notice of its intent to Shares of the Fidelity Growth Opportunities ETF, services. Information regarding the file the proposed rule change, along with a brief Fidelity Magellan ETF, Fidelity Real Estate previous day’s closing price and trading description and text of the proposed rule change, Investment ETF, and Fidelity Small-Mid Cap volume information for the Shares will at least five business days prior to the date of filing Opportunities ETF). of the proposed rule change, or such shorter time 30 For purposes only of waiving the 30-day be published daily in the financial as designated by the Commission. The Exchange section of newspapers. Quotation and operative delay, the Commission has also has satisfied this requirement. considered the proposed rule’s impact on last sale information for the Shares will 27 17 CFR 240.19b–4(f)(6). efficiency, competition, and capital formation. See be available via the CTA high-speed 28 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).

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All submissions should refer to File SECURITIES AND EXCHANGE Commission is publishing this notice to Number SR–CboeBZX–2020–090. This COMMISSION solicit comments on Partial Amendment file number should be included on the No. 1 from interested persons and, for [Release No. 34–90701; File No. SR–OCC– the reasons discussed below, is hereby subject line if email is used. To help the 2020–806] Commission process and review your providing notice of no objection to the comments more efficiently, please use Self-Regulatory Organizations; The Advance Notice. only one method. The Commission will Options Clearing Corporation; Notice II. Background 8 post all comments on the Commission’s of Filing of Partial Amendment No. 1 and Notice of No Objection To The Advance Notice concerns internet website (http://www.sec.gov/ changes to OCC’s RWD Plan. As Advance Notice, as Modified by Partial rules/sro.shtml). Copies of the described in greater detail below, OCC Amendment No. 1, Related to submission, all subsequent proposes to (1) update the RWD Plan to Proposed Changes To Update the amendments, all written statements reflect changes to OCC’s capital Options Clearing Corporation’s with respect to the proposed rule structure resulting from the disapproval Recovery and Orderly Wind-Down Plan change that are filed with the of OCC’s previously approved ‘‘Capital Commission, and all written December 17, 2020. Plan’’ 9 and the subsequent approval of communications relating to the OCC’s ‘‘Capital Management Policy,’’ 10 proposed rule change between the I. Introduction and (2) implement changes identified Commission and any person, other than On October 20, 2020, the Options during OCC’s annual review of the RWD those that may be withheld from the Clearing Corporation (‘‘OCC’’) filed with Plan. The changes arise out of OCC’s public in accordance with the the Securities and Exchange annual review of the RWD Plan and provisions of 5 U.S.C. 552, will be Commission (‘‘Commission’’) advance include factual updates (e.g., market available for website viewing and notice SR–OCC–2020–806 (‘‘Advance share and contract volume data) and printing in the Commission’s Public Notice’’)pursuant to Section 806(e)(1) of streamlined discussions in the RWD Reference Room, 100 F Street NE, Title VIII of the Dodd-Frank Wall Street Plan (e.g., replacement of detailed Washington, DC 20549 on official Reform and Consumer Protection Act, overview of OCC’s risk management business days between the hours of entitled Payment, Clearing and program with a more concise summary). Capital Management Policy Updates. 10:00 a.m. and 3:00 p.m. Copies of the Settlement Supervision Act of 2010 1 As a result of the implementation of the filing also will be available for (‘‘Clearing Supervision Act’’) and Rule 2 Capital Management Policy, OCC is inspection and copying at the principal 19b–4(n)(1)(i) under the Securities Exchange Act of 1934 (‘‘Exchange proposing changes to Chapters 2, 5, and office of the Exchange. All comments Act’’) 3 to make changes to OCC’s 6 of its RWD Plan. In Chapter 2, OCC received will be posted without change. Recovery and Orderly Wind-Down Plan is proposing to revise its discussion of Persons submitting comments are (‘‘RWD Plan’’).4 The Advance Notice fee management for consistency with cautioned that we do not redact or edit was published for public comment in the Capital Management Policy. In personal identifying information from the Federal Register on November 18, Chapter 5, OCC is proposing to (i) comment submissions. You should 2020,5 and the Commission has received replace its discussion of the submit only information that you wish no comments regarding the changes Replenishment Plan established under to make available publicly. All proposed in the Advance Notice.6 On the disapproved Capital Plan with a submissions should refer to File November 18, 2020, OCC filed a partial discussion of the replenishment Number SR–CboeBZX–2020–090 and amendment (‘‘Partial Amendment No. structure adopted under the Capital should be submitted on or before 1’’) to modify the Advance Notice.7 The Management Policy; (ii) replace January 12, 2021. references to the discretionary use of 1 OCC’s current and/or retained earnings For the Commission, by the Division of 12 U.S.C. 5465(e)(1). 2 17 CFR 240.19b–4(n)(1)(i). with references to the mandatory Trading and Markets, pursuant to delegated 3 15 U.S.C. 78a et seq. contribution—immediately following authority.31 4 See Notice of Filing infra note 5, at 85 FR 73553. the use of margin, deposits in lieu of J. Matthew DeLesDernier, 5 Securities Exchange Act Release No. 90416 margin and the Clearing Fund deposits Assistant Secretary. (Nov. 13, 2020), 85 FR 73553 (Nov. 18, 2020) (File of the suspended Clearing Member—of No. SR–OCC–2020–806) (‘‘Notice of Filing’’). On [FR Doc. 2020–28150 Filed 12–21–20; 8:45 am] October 20, 2020, OCC also filed a related proposed OCC’s current and retained earnings BILLING CODE 8011–01–P rule change (SR–OCC–2020–013) with the greater than 110% of OCC’s annually- Commission pursuant to Section 19(b)(1) of the established ‘‘Target Capital Exchange Act and Rule 19b–4 thereunder Requirement;’’ (iii) update the (‘‘Proposed Rule Change’’). 15 U.S.C. 78s(b)(1) and 17 CFR 240.19b–4, respectively. In the Proposed description of how OCC could increase Rule Change, which was published in the Federal the minimum required cash Register on November 9, 2020, OCC seeks approval of proposed changes to its rules necessary to an error in the proposed rule text and updates the implement the Advance Notice. Securities list of vendor agreements attached to the RWD Plan, Exchange Act Release No. 90315 (Nov. 3, 2020), 85 but did not change the purpose of or basis for the FR 71384 (Nov. 9, 2020) (File No. SR–OCC–2020– Advance Notice. References to the Advance Notice 013). The comment period for the related Proposed from this point forward refer to the Advance Notice, Rule Change filing closed on November 30, 2020. as amended by Partial Amendment No. 1. 6 Since the proposal contained in the Advance 8 Capitalized terms used but not defined herein Notice was also filed as a proposed rule change, all have the meanings specified in OCC’s Rules and By- public comments received on the proposal are Laws, available at https://www.theocc.com/about/ considered regardless of whether the comments are publications/bylaws.jsp. submitted on the Proposed Rule Change or the 9 See Securities Exchange Act Release No. 85121 Advance Notice. (Feb. 13, 2019), 84 FR 5157 (Feb. 20, 2019) (File No. 7 In Partial Amendment No. 1, OCC corrects and SR–OCC–2015–02). updates a confidential Exhibit 5 to the materials 10 See Securities Exchange Act Release No. 86725 filed on October 20, 2020 regarding File No. SR– (Aug. 21, 2019), 84 FR 44952 (Aug. 27, 2019) (File 31 17 CFR 200.30–3(a)(12). OCC–2020–806. Partial Amendment No. 1 corrects No. SR–OCC–2019–007).

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contribution to the Clearing Fund to investment counterparties, and vendors) III. Commission Findings and Notice of reflect enhancements to OCC’s liquidity as well as changes to OCC’s retirement No Objection risk management framework that the plan obligations. In Chapter 3, the RWD 11 Although the Clearing Supervision Commission approved in 2020; and Plan lists OCC’s internal support Act does not specify a standard of (iv) include a discussion of the functions. OCC is proposing the review for an advance notice, the stated mandatory contribution of any unvested addition of two new internal support purpose of the Clearing Supervision Act portions of OCC’s Executive Deferred functions to that list and the removal of is instructive: To mitigate systemic risk Compensation Plan (‘‘EDCP’’) in the Office of the Corporate Executive in the financial system and promote proportion to any charges against the from the list. The net result of the financial stability by, among other mutualized portion of OCC’s Clearing proposed changes would bring the total things, promoting uniform risk Fund. OCC also proposes to revise the number of internal support functions management standards for SIFMUs and list of ‘‘Recovery Trigger Events’’ in listed from fourteen to sixteen. OCC also strengthening the liquidity of SIFMUs.12 Chapter 5 to: (a) Delete one of the proposes to update the descriptions of Section 805(a)(2) of the Clearing Recovery Trigger Events that was all OCC’s internal support functions so Supervision Act authorizes the derived from a defined term in the they align with OCC’s internal Commission to prescribe regulations Capital Plan; (b) consolidate two other descriptions of such functions. Recovery Trigger Events into a single, In Chapter 6, OCC is proposing to (i) containing risk management standards operational loss-related recovery trigger; update references to OCC’s internal for the payment, clearing, and and (c) add a qualification onto an support functions; and (ii) certain settlement activities of designated existing liquidity loss-related recovery references to headcount. In Chapter 7, clearing entities engaged in designated OCC is proposing to update staff titles activities for which the Commission is trigger. In Chapter 6, OCC is proposing 13 to update discussion of the tools by to reflect changes in related office titles. the supervisory agency. Section 805(b) which OCC could recapitalize in certain In Chapter 8, OCC is proposing to of the Clearing Supervision Act recovery and wind-down scenarios. update lists of (i) Clearing Members; (ii) provides the following objectives and Further, OCC is proposing to revise the Board participation; (iii) settlement principles for the Commission’s risk list of Wind-Down Plan Trigger Events bank and letter of credit bank; (iv) management standards prescribed under OCC’s vendors and service providers; Section 805(a): 14 (‘‘WDP Triggers’’). Specifically, OCC • proposes to consolidate two current (v) updates to the extreme hypothetical To promote robust risk scenarios designed by OCC that, if such management; WDP Triggers into a single WDP Trigger • scenarios occurred, could cause OCC to to promote safety and soundness; related to OCC’s financial resource • activate the RWD Plan; and (vi) key to reduce systemic risks; and requirements and to consolidate two • other WDP Triggers into a single WDP agreements. to support the stability of the Trigger related to operational Administrative and Streamlining broader financial system. disruption. Similar to the changes OCC Changes. In addition to the updates Section 805(c) provides, in addition, proposes in Chapter 5, the changes described above, OCC is also proposing that the Commission’s risk management proposed in Chapter 6 would be several administrative and streamlining standards may address such areas as designed to reflect OCC’s current changes throughout the RWD Plan. OCC risk management and default policies 15 replenishment plan under the Capital proposes to align the executive and procedures, among other areas. Management Policy. summary and overview section of the The Commission has adopted risk Annual Review Updates. As a result RWD Plan with the changes described management standards under Section of its annual review and update process, above. OCC also proposes moving 805(a)(2) of the Clearing Supervision OCC is proposing changes to Chapters 2, annual report excerpts from Chapter 2 to Act and Section 17A of the Exchange 3, 5, 6, 7, and 8 of its RWD Plan. In an appendix to the RWD Plan, replace Act (the ‘‘Clearing Agency Rules’’).16 Chapter 2, OCC is proposing to update the current overview of OCC’s risk The Clearing Agency Rules require, (i) market share and contract volume management program with a more among other things, each covered data; (ii) lists of the securities options concise summary, and update a clearing agency to establish, implement, exchanges and other markets for which summary description of OCC’s maintain, and enforce written policies OCC provides clearing services; (iii) interconnections with external vendors and procedures that are reasonably organizational charts, headcount and a list of vendors that provide OCC designed to meet certain minimum numbers, discussions of OCC’s critical technology and information requirements for its operations and risk management structure and descriptions reporting services. In Chapter 4, OCC management practices on an ongoing of management roles and proposes to update certain factual basis.17 As such, it is appropriate for the responsibilities; (iv) updated references and make other minor Commission to review advance notices descriptions of OCC’s Board’s changes to reflect the use of a single against the Clearing Agency Rules and responsibilities and procedures, lists of term for Critical Services that are the objectives and principles of these Board members and descriptions of currently identified separately. OCC risk management standards as described OCC’s Board committees’ roles and also proposes to revise the mapping of responsibilities; and (v) graphs of total Critical Services to Support Functions 12 See 12 U.S.C. 5461(b). 13 monthly deposits to OCC’s Clearing in Chapter 4 to reflect the categorization 12 U.S.C. 5464(a)(2). 14 12 U.S.C. 5464(b). Fund. OCC is also proposing revisions of Support Functions as either ‘‘primary,’’ ‘‘secondary,’’ or ‘‘non- 15 12 U.S.C. 5464(c). to reflect certain program changes that 16 critical.’’ In Chapter 5, OCC proposes to 17 CFR 240.17Ad–22. See Securities Exchange have occurred at OCC since the initial Act Release No. 68080 (Oct. 22, 2012), 77 FR 66220 approval of the RWD Plan in 2018 (e.g., (i) clean up references to its by-laws that (Nov. 2, 2012) (S7–08–11). See also Covered changes to cross-margining are now rules; (ii) consolidate two Clearing Agency Standards, 81 FR 70786. The Commission established an effective date of arrangements, credit facilities, recovery triggers into a single, operational loss-related recovery trigger; December 12, 2016 and a compliance date of April 11, 2017 for the Covered Clearing Agency 11 See Securities Exchange Act Release No. 89014 and (iii) add qualifying language to an Standards. OCC is a ‘‘covered clearing agency’’ as (Jun. 4, 2020), 85 FR 35446 (Jun. 10, 2020) (File No. existing liquidity loss-related recovery defined in Rule 17Ad–22(a)(5). SR–OCC–2020–003). trigger. 17 17 CFR 240.17Ad–22.

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in Section 805(b) of the Clearing services (including clearance and framework for comprehensively Supervision Act. As discussed below, settlement services) during, through, managing legal, credit, liquidity, the Commission believes the changes and following periods of extreme stress operational, general business, proposed in the Advance Notice are giving rise to the need for recovery.23 investment, custody, and other risks consistent with the objectives and As described above, OCC proposes to that arise in or are borne by the covered principles described in Section 805(b) of (1) update the RWD Plan to reflect clearing agency, which includes plans the Clearing Supervision Act,18 and in changes to OCC’s capital structure for the recovery and orderly wind-down the Clearing Agency Rules, in particular resulting from the disapproval of OCC’s of the covered clearing agency 24 Rule 17Ad–22(e)(3)(ii).19 previously approved ‘‘Capital Plan’’ necessitated by credit losses, liquidity and the subsequent approval of OCC’s shortfalls, losses from general business A. Consistency With Section 805(b) of 25 ‘‘Capital Management Policy,’’ and (2) risk, or any other losses.30 the Clearing Supervision Act implement changes identified during The Commission believes that the OCC’s annual review of the RWD Plan. The Commission continues to believe proposal contained in OCC’s Advance Consistent with the Commission’s prior that the RWD Plan (i) clearly describes Notice is consistent with the stated statements regarding disclosure of OCC’s recovery tools, which enhance objectives and principles of Section documents describing a covered OCC’s ability to recover from credit 805(b) of the Clearing Supervision Act. clearing agency’s recovery and wind- losses, liquidity shortfalls, general Specifically, as discussed below, the down plans, the Commission believes business risk losses, or other losses, Commission believes that the changes that such recovery and wind-down consistent with Rule 17Ad–22(e)(3)(ii); proposed in the Advance Notice are plans should be updated regularly or and (ii) supports OCC’s ability to use consistent with promoting robust risk more frequently as necessary.26 OCC risk management and recovery tools management, promoting safety and also proposes to update and streamline effectively to bring about a recovery by soundness, reducing systemic risks, and the data and descriptions provided in identifying in advance which tools may supporting the stability of the broader the RWD Plan.27 The Commission be most effective for different situations financial system.20 believes that keeping the RWD Plan or needs, consistent with Rule 17Ad– The Commission believes that the updated with current information, and 22(e)(3)(ii).31 As described above, the proposed changes to OCC’s RWD Plan refining the descriptions to make it RWD Plan sets forth OCC’s plans to are consistent with promoting robust more concise, makes it a more accurate recover or wind-down its operations as risk management, in particular risks and useful document. As such, the a result of severe financial or arising out of severe financial or Commission believes that the proposal operational stress in an orderly fashion. operational stress that could be would promote both robust risk The proposed updates will make the presented to OCC as well as promoting management and safety and soundness, information provided in the RWD Plan safety and soundness, reducing systemic reduce systemic risk, and support the more accurate and useful. The revised risk, and supporting the broader broader financial system consistent with RWD Plan would, in turn, provide a financial system. As a central Section 805(b) of the Clearing 21 more accurate and usable playbook for counterparty and SIFMU, it is Supervision Act.28 OCC or source of information for a imperative for OCC to have a plan in Accordingly, and for the reasons resolution authority. Accordingly, the place to address extreme stresses or stated above, the Commission believes Commission believes that the proposed crises with the aim of maintaining the changes proposed in the Advance changes to the RWD Plan are consistent OCC’s viability and ability to provide Notice are consistent with Section with Rule 17Ad–22(e)(3)(ii) under the critical services. In the event that OCC’s 805(b) of the Clearing Supervision Exchange Act.32 recovery efforts are not successful, the Act.29 RWD Plan would seek to increase the IV. Conclusion possibility that a resolution of OCC’s B. Consistency With Rule 17Ad– operations could be conducted in an 22(e)(3)(ii) Under the Exchange Act It is therefore noticed, pursuant to orderly manner. The Commission Rule 17Ad–22(e)(3)(ii) under the Section 806(e)(1)(I) of the Clearing continues to believe that OCC specifying Exchange Act requires that a covered Supervision Act, that the Commission the steps that it would take in either a clearing agency establish, implement, does not object to Advance Notice (SR– recovery or orderly wind-down would maintain, and enforce written policies OCC–2020–806) and that OCC is enhance OCC’s ability to address and procedures reasonably designed to authorized to implement the proposed circumstances specific to an extreme maintain a sound risk management change as of the date of this notice or stress event.22 The Commission also the date of an order by the Commission continues to believe that, by increasing 23 See id. approving proposed rule change SR– the likelihood that recovery would be 24 See Securities Exchange Act Release No. 85121 OCC–2020–013, as modified by Partial orderly, efficient, and successful, the (Feb. 13, 2019), 84 FR 5157 (Feb. 20, 2019) (File No. Amendment No. 1, whichever is later. RWD Plan enhances OCC’s ability to SR–OCC–2015–02). 25 By the Commission. maintain the continuity of its critical See Securities Exchange Act Release No. 86725 (Aug. 21, 2019), 84 FR 44952 (Aug. 27, 2019) (File Vanessa A. Countryman, No. SR–OCC–2019–007). 18 12 U.S.C. 5464(b). 26 See Securities Exchange Act Release No. 34– Secretary. 19 17 CFR 240.17Ad–22(e)(3)(ii). 78961 (Oct. 13, 2016), 81 FR 70786, 70808 (Oct. 13, [FR Doc. 2020–28258 Filed 12–21–20; 8:45 am] 20 2016) (File No. S7–03–14). 12 U.S.C. 5464(b). BILLING CODE 8011–01–P 21 See Financial Stability Oversight Council 27 For example, OCC is proposing to update its (‘‘FSOC’’) 2012 Annual Report, Appendix A, market share and contract volume data, lists of the available at https://www.treasury.gov/initiatives/ securities options exchanges and other markets for 30 17 CFR 240.17Ad–22(e)(3)(ii). fsoc/Documents/2012%20Annual%20Report.pdf. which OCC provides clearing services, 31 See Securities Exchange Act Release No. 83918 22 See Securities Exchange Act Release No. 83918 organizational charts, and headcount numbers. OCC (Aug. 23, 2018), 83 FR 44091, 44095 (Aug. 29, 2018) (Aug. 23, 2018), 83 FR 44091, 44094 (Aug. 29, 2018) also proposes to replace the detailed overview of (File No. SR–OCC–2017–021); Securities Exchange (File No. SR–OCC–2017–021); Securities Exchange OCC’s risk management program with a more Release No. 83928 (Aug. 23, 2018), 83 FR 44109, Release No. 83928 (Aug. 23, 2018), 83 FR 44109, concise summary. 44113 (Aug. 29, 2018) (File No. SR–OCC–2017– 44112 (Aug. 29, 2018) (File No. SR–OCC–2017– 28 12 U.S.C. 5464(b). 810). 810). 29 12 U.S.C. 5464(b). 32 17 CFR 240.17Ad–22(e)(3)(ii).

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SECURITIES AND EXCHANGE II. Description of the Proposal 6 corporate bonds, U.S. and foreign COMMISSION NYSE Arca Rule 8.900–E(b)(1) equities, and commodities. requires the Exchange to file separate The AdvisorShares Q Dynamic [Release No. 34–90683; File No. SR– proposals under Section 19(b) of the Act Growth ETF is an actively managed ETF NYSEArca–2020–94] before listing and trading any series of that is primarily a ‘‘fund of funds.’’ It Managed Portfolio Shares on the will seek to achieve long-term growth by Self-Regulatory Organizations; NYSE Exchange; thus, the Exchange submitted investing in ETFs representing all asset Arca, Inc.; Order Approving a this proposal to list and trade the classes, including, but not limited to, Proposed Rule Change, as Modified by Shares. The Shares will be issued by the treasury bonds, municipal bonds, Amendments No. 1 and No. 2, To List AdvisorShares Trust (‘‘Trust’’), a investment grade corporate bonds, high- and Trade Shares of the statutory trust organized under the laws yield U.S. corporate bonds, U.S. and AdvisorShares Q Portfolio Blended of the State of Delaware and registered foreign equities, commodities, and Allocation ETF and AdvisorShares Q with the Commission as an open-end volatility products. Each Fund’s investments, including Dynamic Growth ETF Under NYSE management investment company.7 The derivatives, will be consistent with its Arca Rule 8.900–E investment adviser to each Fund will be investment objective and will not be AdvisorShares Investments, LLC December 16, 2020. used to enhance leverage (although (‘‘Adviser’’). The investment sub- certain derivatives and other I. Introduction advisor to each Fund will be investments may result in leverage). ThinkBetter, LLC. Foreside Fund On October 20, 2020, NYSE Arca, Inc. Each Fund’s investments will not be Services, LLC (‘‘Distributor’’) will serve (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed used to seek performance that is the with the Securities and Exchange as the distributor of the Shares. Each Fund’s holdings will conform to multiple or inverse multiple (e.g., 2X or Commission (‘‘Commission’’), pursuant –3X) of the Fund’s benchmark. to Section 19(b)(1) 1 of the Securities the permissible investments as set forth Exchange Act of 1934 (‘‘Act’’) 2 and Rule in the Exemptive Application and III. Discussion and Commission 19b–4 thereunder,3 a proposed rule Exemptive Order. Pursuant to the Findings change to list and trade shares Exemptive Order, the only permissible After careful review, the Commission (‘‘Shares’’) of the following funds under investments for the Funds are the finds that the proposed rule change, as NYSE Arca Rule 8.900–E (Managed following, all of which trade on a U.S. modified by Amendments No. 1 and No. Portfolio Shares): AdvisorShares Q exchange contemporaneously with the 2, to list and trade the Shares is Shares: Exchange-traded funds Portfolio Blended Allocation ETF and consistent with the Act and the rules (‘‘ETFs’’), exchange-traded notes, AdvisorShares Q Dynamic Growth ETF and regulations thereunder applicable to exchange-listed common stocks, (each a ‘‘Fund’’ and, collectively, the a national securities exchange.9 In exchange-traded American Depositary ‘‘Funds’’). The proposed rule change particular, the Commission finds that Receipts, exchange-traded real estate was published for comment in the the proposed rule change, as modified investment trusts, exchange-traded Federal Register on November 9, 2020.4 by Amendment No. 1, is consistent with commodity pools, exchange-traded On December 9, 2020, the Exchange Section 6(b)(5) of the Act,10 which metals trusts, exchange-traded currency filed Amendment No. 1 to the proposed requires, among other things, that the trusts and exchange-traded futures, as rule change, which replaced and Exchange’s rules be designed to prevent superseded the proposed rule change as well as cash and cash equivalents (short-term U.S. Treasury securities, fraudulent and manipulative acts and originally filed, and on December 10, practices, to promote just and equitable 2020, the Exchange filed Amendment government money market funds, and repurchase agreements).8 principles of trade, to remove No. 2 to the proposed rule change.5 The The AdvisorShares Q Portfolio impediments to and perfect the Commission has received no comment Blended Allocation ETF is an actively mechanism of a free and open market letters on the proposal. This order managed ETF that is primarily a ‘‘fund and a national market system, and, in approves the proposed rule change, as of funds.’’ Its investment objective is to general, to protect investors and the modified by Amendments No. 1 and No. seek to maximize total return over the public interest. 2. long-term. The Fund will invest in ETFs The Adviser is not registered as a representing all asset classes, including, broker-dealer but is affiliated with a 11 1 15 U.S.C. 78s(b)(1). but not limited to, treasury bonds, broker-dealer. The Adviser has 2 15 U.S.C. 78a. implemented and will maintain a ‘‘fire 3 municipal bonds, investment grade 17 CFR 240.19b–4. corporate bonds, high-yield U.S. wall’’ with respect to its broker-dealer 4 See Securities Exchange Act Release No. 90323 affiliate regarding access to information (November 3, 2020), 85 FR 71366. 6 concerning the composition and/or 5 In Amendment No. 1, the Exchange: (1) Updated Additional information regarding the Fund, the the status of the application for exemptive relief Trust (defined infra), and the Shares can be found changes to a Fund’s portfolio and filed by the Trust (defined below); (2) modified its in Amendments No. 1 and No. 2, supra note 5, and Creation Basket.12 Any person related to representation regarding the use of the Funds’ the Registration Statement, infra note 7. the Adviser or the Trust who makes 7 investments; (3) supplemented its description of the The Trust is registered under the Investment decisions pertaining to a Fund’s Funds’ NAVs; (4) disclosed the minimum number Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 of shares that would be outstanding at the Act’’). On September 11, 2020, the Trust filed a portfolio composition or that has access commencement of trading on the Exchange; and (5) registration statement on Form N–1A under the to information regarding a Fund’s made technical changes. In Amendment No. 2, the Securities Act of 1933 and the 1940 Act for the portfolio or changes thereto or the Exchange clarified its representation regarding the Funds (File Nos. 333–157876 and 811–22110) minimum number of Shares outstanding at the (‘‘Registration Statement’’). The Commission issued 9 commencement of trading on the Exchange. an order granting exemptive relief to the Trust In approving this proposed rule change, the Because Amendments No. 1 and No. 2 do not (‘‘Exemptive Order’’) under the 1940 Act on Commission has considered the proposed rule’s materially alter the substance of the proposed rule December 8, 2020 (Investment Company Act impact on efficiency, competition, and capital change, Amendment No. 2 is not subject to notice Release No. 31431). The Exemptive Order was formation. See 15 U.S.C. 78c(f). and comment. Both amendments are available on granted in response to the Trust’s application for 10 15 U.S.C. 78f(b)(5). the Commission’s website at: https://www.sec.gov/ exemptive relief (‘‘Exemptive Application’’) (File 11 See Amendment No. 1, supra note 5, at 5. comments/sr-nysearca-2020-94/ No. 812–15146). 12 See id. See also NYSE Arca Rule 8.900–E(c)(5) srnysearca202094.htm. 8 See Amendment No. 1, supra note 5, at 6, n.7. (defining ‘‘Creation Basket’’).

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Creation Basket will be subject to disseminating or disclosing, for a widely disseminated by the Reporting procedures designed to prevent the use purpose unnecessary to the performance Authority and/or one or more major and dissemination of material non- of FINRA job responsibilities any market data vendors in one second public information regarding such nonpublic information obtained in the intervals during the Exchange’s Core portfolio or changes thereto and the course of his or her employment. Trading Session and will be Creation Basket.13 Further, any person The Commission also finds that the disseminated to all market participants or entity, including an AP proposal is consistent with Section at the same time.24 Moreover, the Representative,14 custodian, Reporting 11A(a)(1)(C)(iii) of the Act,19 which sets Funds’ website, Authority, distributor, or administrator, forth Congress’s finding that it is in the www.advisorshares.com, will include a who has access to information regarding public interest and appropriate for the form of the prospectus for each Fund the Fund’s portfolio composition or protection of investors and the that may be downloaded. The Funds’ changes thereto or its Creation Basket, maintenance of fair and orderly markets website will include additional must be subject to procedures designed to assure the availability to brokers, quantitative information updated on a to prevent the use and dissemination of dealers, and investors of information daily basis, including, for each Fund, material nonpublic information with respect to quotations for, and the prior Business Day’s NAV, market regarding the applicable Fund portfolio transactions in, securities. For the closing price or mid-point of the bid/ask or changes thereto or the Creation reasons discussed below, the spread at the time of calculation of such Basket.15 Moreover, if any such person Commission believes that the proposal NAV (‘‘Bid/Ask Price’’),25 and a or entity is registered as a broker-dealer is reasonably designed to promote fair calculation of the premium and or affiliated with a broker-dealer, such disclosure of information that may be discount of the market closing price or person or entity must erect and necessary to price the Shares Bid/Ask Price against the NAV. The maintain a ‘‘fire wall’’ between the appropriately and to prevent trading in website and information will be person or entity and the broker-dealer the Shares when a reasonable degree of publicly available at no charge.26 with respect to access to information certain pricing transparency cannot be Additionally, the Exchange’s rules concerning the composition of and/or assured and, as such, the Commission regarding trading halts should help changes to such Fund’s portfolio or believes the proposal is reasonably ensure the maintenance of fair and Creation Basket.16 designed to maintain a fair and orderly orderly markets for the Shares. Trading The Exchange states that trading in market for trading the Shares. in the Shares will be subject to NYSE the Shares will be subject to the Specifically, as required by NYSE Arca Arca Rule 8.900–E(d)(2)(C), which sets Exchange’s surveillance procedures for Rule 8.900–E(d)(1)(B), the Exchange will forth circumstances under which derivative products, and that its obtain a representation from the issuer trading in the Shares will be halted. surveillance procedures are adequate to that the net asset value (‘‘NAV’’) per NYSE Arca Rule 8.900–E(d)(2)(C)(i) properly monitor the trading of the Share of each Fund will be calculated provides that the Exchange may Shares on the Exchange during all daily and will be made available to all consider all relevant factors in trading sessions and to deter and detect market participants at the same time.20 exercising its discretion to halt trading violations of Exchange rules and the Information regarding market price and in a series of Managed Portfolio Shares. applicable federal securities laws.17 trading volume of the Shares will be Trading may be halted because of NYSE Arca Rule 8.900–E(b)(3) requires continually available on a real-time market conditions or for reasons that, in each Fund’s investment adviser to, upon basis throughout the day on brokers’ the view of the Exchange, make trading request by the Exchange, or the computer screens and other electronic in the series of Managed Portfolio Financial Industry Regulatory Authority services.21 Quotation and last-sale Shares inadvisable. These may include: (‘‘FINRA’’) on behalf of the Exchange, to information for the Shares will be (a) The extent to which trading is not make available the daily portfolio available via the Consolidated Tape occurring in the securities and/or the holdings of each series of Managed Association high-speed line.22 In financial instruments composing the Portfolio Shares. The Exchange states addition, the Verified Intraday portfolio; or (b) whether other unusual that it has a general policy prohibiting Indicative Value (‘‘VIIV’’), as defined in conditions or circumstances detrimental the distribution of material, non-public NYSE Arca Rule 8.900–E(c)(2),23 will be to the maintenance of a fair and orderly information by its employees.18 market are present.27 Further, NYSE Similarly, FINRA Rule 9910(d) generally 19 15 U.S.C. 78k–1(a)(1)(C)(iii). prohibits FINRA employees from 20 See Amendment No. 1, supra note 5, at 14. issuance, redemption, or trading of Managed 21 See id. at 11. Portfolio Shares. A series of Managed Portfolio 22 See id. Shares may have more than one Reporting 13 See Amendment No. 1, supra note 5, at 5. Authority, each having different functions. 23 NYSE Arca Rule 8.900–E(c)(2) defines the term Furthermore, the Exchange represents that in the 24 See Amendment No. 1, supra note 5, at 11–12. event that (a) the Adviser or any sub-adviser ‘‘Verified Intraday Indicative Value’’ as the indicative value of a Managed Portfolio Share based 25 The Bid/Ask Price of the Shares will be the becomes registered as a broker-dealer or becomes mid-point between the current national best bid and newly affiliated with a broker-dealer, or (b) any new on all of the holdings of a series of Managed Portfolio Shares as of the close of business on the offer at the time of calculation of a Fund’s NAV. adviser or sub-adviser is a registered broker-dealer The records relating to Bid/Ask Prices will be or becomes affiliated with a broker-dealer, the prior business day and, for corporate actions, based on the applicable holdings as of the opening of retained by the Funds or their service providers. Adviser will implement and maintain a fire wall See Amendment No. 1, supra note 5, at 11, n.15. with respect to personnel of the broker-dealer or business on the current business day, priced and 26 See id. at 11. broker-dealer affiliate regarding access to disseminated in one second intervals during the 27 information concerning the composition and/or Core Trading Session by the Reporting Authority. The Exemptive Application provides that the changes to the portfolio and/or Creation Basket. See NYSE Arca Rule 8.900–E(c)(8) defines the term Investment Company or their agent will request that id. ‘‘Reporting Authority’’ with respect to a particular the Exchange halt trading in the applicable series series of Managed Portfolio Shares as the Exchange, of Managed Portfolio Shares where: (i) The intraday 14 See NYSE Arca Rule 8.900–E(c)(5) (defining an institution, or a reporting service designated by indicative values calculated by the calculation ‘‘AP Representative’’). the Exchange or by the exchange that lists a engines differ by more than 25 basis points for 60 15 See Amendment No. 1, supra note 5, at 5–6. particular series of Managed Portfolio Shares (if the seconds in connection with pricing of the VIIV; or See also NYSE Arca Rule 8.900–E(b)(5). Exchange is trading such series pursuant to unlisted (ii) holdings representing 10% or more of a series 16 See Amendment No. 1, supra note 5, at 6. See trading privileges), as the official source for of Managed Portfolio Shares’ portfolio have become also NYSE Arca Rule 8.900–E(b)(5). calculating and reporting information relating to subject to a trading halt or otherwise do not have 17 See Amendment No. 1, supra note 5, at 14. such series, including, but not limited to, the NAV, readily available market quotations. Any such 18 See id. the VIIV, or other information relating to the requests will be one of many factors considered in

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Arca Rule 8.900–E(d)(2)(C)(ii) provides (5) FINRA, on behalf of the Exchange, thereunder applicable to a national that, if the Exchange becomes aware or the regulatory staff of the Exchange, securities exchange. that: (i) The VIIV of a series of Managed or both, will communicate as needed IV. Conclusion Portfolio Shares is not being calculated regarding trading in the Shares and or disseminated in one second intervals, certain exchange-traded instruments It is therefore ordered, pursuant to as required; (ii) the NAV with respect to with other markets and other entities Section 19(b)(2) of the Act,37 that the a series of Managed Portfolio Shares is that are members of the Intermarket proposed rule change (SR–NYSEArca– not disseminated to all market Surveillance Group (‘‘ISG’’), and FINRA, 2020–94), as modified by Amendments participants at the same time; (iii) the on behalf of the Exchange, or the No. 1 and No. 2, be, and it hereby is, holdings of a series of Managed regulatory staff of the Exchange, or both, approved. Portfolio Shares are not made available may obtain trading information For the Commission, by the Division of on at least a quarterly basis as required regarding trading such securities from Trading and Markets, pursuant to delegated under the 1940 Act; or (iv) such such markets and other entities. In authority.38 holdings are not made available to all addition, the Exchange may obtain J. Matthew DeLesDernier, market participants at the same time information regarding trading in the Assistant Secretary. (except as otherwise permitted under Shares and certain exchange-traded [FR Doc. 2020–28147 Filed 12–21–20; 8:45 am] the applicable Exemptive Order or no- instruments from markets and other BILLING CODE 8011–01–P action relief granted by the Commission entities that are members of ISG or with or Commission staff to the Investment which the Exchange has in place a Company with respect to the series of comprehensive surveillance sharing SECURITIES AND EXCHANGE Managed Portfolio Shares), it will halt agreement.32 COMMISSION trading in such series until such time as (6) The Exchange represents that, for [Release No. 34–90689] the VIIV, the NAV, or the holdings are initial and/or continued listing, each available, as required. Fund will be in compliance with Rule Order Granting Temporary Exemptive In support of this proposal, the 10A–3 under the Act.33 Relief, Pursuant to Section 36 of the Exchange has also made the following This approval order is based on all of Securities Exchange Act of 1934 representations: the Exchange’s statements and (‘‘Exchange Act’’) and Rule 608(e) of (1) The Shares will conform to the representations set forth above and in Regulation NMS Under the Exchange initial and continued listing criteria Amendments No. 1 and No. 2. Act, From Section 8.1.1 and Section under NYSE Arca Rule 8.900–E, as well Additionally, the Exchange states that 8.1.2 of Appendix D of the National 28 as all terms in the Exemptive Order. all statements and representations made Market System Plan Governing the (2) The Exchange states that a in its proposal regarding (a) the Consolidated Audit Trail minimum of 100,000 Shares of each description of the portfolio or reference Fund will be outstanding at the assets, (b) limitations on portfolio December 16, 2020. commencement of trading on the holdings or reference assets, or (c) the 29 I. Introduction Exchange. applicability of Exchange rules shall (3) The Exchange deems the Shares to constitute continued listing By letter dated December 1, 2020 be equity securities, thus rendering requirements for listing the Shares on (‘‘Participant Letter’’), BOX Exchange trading in the Shares subject to the the Exchange, as provided under NYSE LLC, Cboe BYX Exchange, Inc., Cboe Exchange’s existing rules governing the BZX Exchange, Inc., Cboe C2 Exchange, 30 Arca Rule 8.900–E(b)(1). The issuer of trading of equity securities. the Shares will be required to represent Inc., Cboe EDGA Exchange, Inc., Cboe (4) Prior to the commencement of to the Exchange that it will advise the EDGX Exchange, Inc., Cboe Exchange, trading, the Exchange will inform its Exchange of any failure by a Fund to Inc., Financial Industry Regulatory Equity Trading Permit Holders (‘‘ETP comply with the continued listing Authority, Inc. (‘‘FINRA’’), Investors Holders’’) in an Information Bulletin requirements, and, pursuant to its Exchange LLC, Long-Term Stock (‘‘Bulletin’’) of the special obligations under Section 19(g)(1) of the Exchange, Inc., MEMX LLC, Miami characteristics and risks associated with Act, the Exchange will surveil for International Securities Exchange LLC, trading the Shares.31 compliance with the continued listing MIAX Emerald, LLC, MIAX PEARL, LLC, NASDAQ BX, Inc., Nasdaq GEMX, order to determine whether to halt trading in a requirements. If a Fund is not in compliance with the applicable listing LLC, Nasdaq ISE, LLC, Nasdaq MRX, series of Managed Portfolio Shares, and the LLC, NASDAQ PHLX LLC, The Exchange retains sole discretion in determining requirements, the Exchange will whether trading should be halted. As provided in commence delisting procedures under NASDAQ Stock Market LLC, New York the Exemptive Application, each series of Managed Stock Exchange LLC, NYSE American NYSE Arca Rule 5.5–E(m).34 Portfolio Shares would employ a pricing LLC, NYSE Arca, Inc., NYSE Chicago, For the foregoing reasons, the verification agent to continuously compare two Inc., and NYSE National, Inc. intraday indicative values during regular trading Commission finds that the proposed (collectively, the ‘‘Participants’’) request hours in order to ensure the accuracy of the VIIV. rule change, as modified by See id. at 13, n.19. that the Securities and Exchange Amendments No. 1 and No. 2, is 28 See id. at 14. Commission (the ‘‘Commission’’), 29 See Amendment No. 2, supra note 5, at 3. consistent with Section 6(b)(5) of the 35 pursuant to the Commission’s authority 30 See Amendment No. 1, supra note 5, at 13. Act and Section 11A(a)(1)(C)(iii) of 1 36 under Section 36 of the Exchange Act 31 the Act and the rules and regulations The Bulletin will discuss the following: (1) The and Rule 608(e) of Regulation NMS procedures for purchases and redemptions of under the Exchange Act,2 grant Shares; (2) NYSE Arca Rule 9.2–E(a), which information; and (6) that the portfolio holdings of imposes a duty of due diligence on its ETP Holders the Shares are not disclosed on a daily basis. See exemptive relief from the national to learn the essential facts relating to every id. at 14–15. market system plan governing the customer prior to trading the Shares; (3) how 32 See id. at 14. information regarding the VIIV is disseminated; (4) 33 37 the requirement that ETP Holders deliver a See id. at 6, n.6. 15 U.S.C. 78s(b)(2). prospectus to investors purchasing newly issued 34 See id. at 14. 38 17 CFR 200.30–3(a)(12). Shares prior to or concurrently with the 35 15 U.S.C. 78f(b)(5). 1 15 U.S.C. 78mm. confirmation of a transaction; (5) trading 36 15 U.S.C. 78k–1(a)(1)(C)(iii). 2 17 CFR 242.608(e).

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consolidated audit trail (the ‘‘CAT NMS A. Error Correction Rate Functionality that providing the CAT Reporter 3 Plan’’). Specifically, the Participants The Participants state that the OTQT correction rate over time through the request that the Commission provide must ‘‘provide authorized users with the OTQT would in many ways be 17 temporary exemptive relief from certain ability to retrieve CAT Data via an duplicative. requirements of the CAT NMS Plan that online query screen that includes the B. Search Return Functionality and relate to the online targeted query tool ability to choose from a variety of pre- Simultaneous Query Functionality (‘‘OTQT’’) described in Section defined selection criteria,’’ 9 including, 6.10(c)(i) of the CAT NMS Plan.4 among other things, the ‘‘CAT Reporter The Participants state that Section For the reasons set forth below, this correction rate over time.’’ 10 The 8.1.2 of Appendix D of the CAT NMS Order grants the Participants’ request for Participants request temporary Plan sets forth various performance temporary exemptive relief from the exemptive relief from compliance with requirements for OTQT searches. One of above-described provisions of the CAT the requirement in Section 8.1.1 of these requirements sets forth timeframes NMS Plan, subject to certain conditions. Appendix D of the CAT NMS Plan that in which results must be returned for authorized users must be able to various types of queries (‘‘Search Return II. Request for Relief conduct targeted queries through the Functionality’’).18 Another requirement set forth in Section 8.1.2 of Appendix D In their letter, the Participants explain OTQT with respect to the CAT Reporter correction rate over time (the ‘‘Error is that the OTQT must ‘‘be able to that Section 6.10(c)(i) of the CAT NMS 11 process up to 300 simultaneous query 5 Correction Rate Functionality’’). The Plan requires the Plan Processor to requests with no performance provide Participants and the Participants state that the Plan Processor needs additional time to incorporate the degradation’’ (‘‘Simultaneous Query Commission with access to all CAT 19 Error Correction Rate Functionality to Functionality’’). Data 6 stored in the Central Repository 7 the OTQT.12 Specifically, the According to the Participant Letter, through three different methods: (1) The Participants believe that regulators will the OTQT provided by the Plan OTQT, (2) user-defined direct queries, able to perform searches with respect to Processor is based on a data mart model and (3) and bulk extracts.8 Sections the CAT Reporter correction rate over that ‘‘supports multi-day/month/year 8.1.1 and 8.1.2 of Appendix D of the time by April 30, 2021.13 The queries on any field in the CAT and can CAT NMS Plan set forth certain Participants therefore request that any return all records to the regulatory user functionality requirements for the 20 exemptive relief granted by the for further filtering and analytics.’’ OTQT from which the Participants seek Commission with respect to the Error The Participants state that this model relief. Correction Rate Functionality extend has been used by FINRA in its until April 30, 2021.14 surveillance and market oversight 3 The Commission approved the CAT NMS Plan, To support their request, the operations for approximately five years as modified, on November 15, 2016. See Securities Exchange Act Release Nos. 79318 (November 15, Participants state that the Participants that ‘‘has proven to be an effective and 2016), 81 FR 84696 (November 23, 2016) (‘‘CAT and the Commission currently have reliable surveillance tool that produces NMS Plan Approval Order’’). The CAT NMS Plan access to ‘‘a variety of fields of timely results for regulatory use functions as the limited liability company processed CAT Data and/or validated cases.’’ 21 ‘‘[I]f the user requests data for agreement of the jointly owned limited liability company formed under Delaware state law through (unlinked) data’’ via existing Plan a single symbol during a specified time which the Participants conduct activities related to Processor tools called DIVER and period on a single trade date, all data for the consolidated audit trail (the ‘‘Company’’). MIRS.15 The Participants further that date and symbol (hundreds of 4 See id. at Appendix D, Section 8.1.1. See also represent that, by December 2020, the millions of records) must be scanned to Letter from Michael Simon, CAT NMS Plan Participants and the Commission will locate the specific records requested.’’ 22 Operating Committee Chair, to Vanessa Countryman, Secretary, Commission, dated have access to information regarding the A data mart is then created which December 1, 2020, available at https:// CAT Reporter correction rate over time allows a regulatory user to perform any catnmsplan.com/sites/default/files/2020-12/ for ‘‘compliance review purposes’’ subsequent filtering and analysis.23 The 12.01.20-CAT-Exemption-Request-OTQT.pdf either through the CAT Reporter Portal Participants state that, once a data mart (‘‘Participant Letter’’). The Participants state that this exemptive relief request amends and replaces or through another existing Plan has been created, the results from any 16 in its entirety the request previously submitted to Processor tool called BDSQL, such subsequent filtering and analysis are the Commission on November 16, 2020. See id. at returned ‘‘well within the timeframes 2 n.5. 9 See CAT NMS Plan, supra note 3, at set forth in Section 8.1.2 of Appendix 5 ‘‘Plan Processor’’ is a defined term under the 6.10(c)(i)(A). CAT NMS Plan and means ‘‘the Initial Plan 10 See id. at Appendix D, Section 8.1.1. See also 17 See id. at 3. Processor or any other Person selected by the Participant Letter, supra note 4, at 2. 18 See id. at 3. See also CAT NMS Plan, supra Operating Committee pursuant to SEC Rule 613 and 11 See Participant Letter, supra note 4, at 2–3. The Sections 4.3(b)(i) and 6.1, and with regard to the Participants describe this functionality as ‘‘Error note 3, at Appendix D, Section 8.1.2 (setting out the Initial Plan Processor, the Selection Plan, to Correction Time Functionality,’’ but the following timeframes: (1) ‘‘Within 1 minute for all perform the CAT processing functions required by Commission believes that the term ‘‘Error trades and related lifecycle events for a specific SEC Rule 613 and set forth in this Agreement.’’ See Correction Rate Functionality’’ more accurately Customer or CAT Reporter with the ability to filter CAT NMS Plan, supra note 3, at Section 1.1. describes the functionality. by security and time range for a specified time window up to and including an entire day,’’ (2) 6 ‘‘CAT Data’’ is a defined term under the CAT 12 See Participant Letter, supra note 4, at 3. ‘‘within 30 minutes for all trades and related NMS Plan and means ‘‘data derived from 13 See id. at 3. The Participants note that this lifecycle events for a specific Customer or CAT Participant Data, Industry Member Data, SIP Data, schedule would align the release of the Error Reporter in a specified date range (maximum 1 and such other data as the Operating Committee Correction Rate Functionality with other month),’’ and (3) ‘‘within 6 hours for all trades and may designate as ‘‘CAT Data’’ from time to time.’’ functionality releases that will add data for OTQT See id. queries concerning ‘‘the new equity exchange order related lifecycle events for a specific Customer or CAT Reporter in a specified date range (maximum 7 ‘‘Central Repository’’ is a defined term under the book and volume concentration using equity 12-month duration from the most recent 24 CAT NMS Plan and means ‘‘the repository exchange data.’’ See id. at 3. months)’’). responsible for the receipt, consolidation, and 14 See id. at 2. 19 See Participant Letter, supra note 4, at 4. See retention of all information reported to the CAT 15 See id. at 3. The Participants note that ‘‘DIVER’’ pursuant to SEC Rule 613 and this Agreement.’’ See and ‘‘MIRS’’ are FINRA CAT’s versions of the also CAT NMS Plan, supra note 3, at Section 8.1.2. 20 id. OTQT. See id. at 2 n.6 See Participant Letter, supra note 4, at 4. 8 See Participant Letter, supra note 4, at 2; see 16 ‘‘BDSQL’’ is the name used by FINRA to 21 See id. at 4–5. also CAT NMS Plan, supra note 3, at Section describe its proprietary user-defined direct query 22 See id. at 4. 6.10(c)(i). tool. 23 See id.

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D.’’ 24 In some instances, however, the time required to populate data marts in This would be inconsistent with the Participants acknowledge that the the OTQT.31 plain meaning of the CAT NMS Plan amount of time required by the OTQT language concerning query response III. Discussion to populate a data mart is longer than time requirements and would the timeframes set forth in the CAT As the Participants note, Sections undermine the purpose of the NMS Plan.25 They state, for example, 6.10(c) and Appendix D, Section 8.1.1 of performance standard. that ‘‘[i]t typically currently takes up to the CAT NMS Plan require the OTQT to Appendix D, Section 8.1.2 of the CAT four minutes for queries for a single day ‘‘provide authorized users with the NMS Plan sets forth requirements for involving equities trades and up to six ability to retrieve CAT Data via an ‘‘related lifecycle events’’ and ‘‘complex minutes for options trade queries for a online query screen that includes the queries.’’ ‘‘Related lifecycle events’’ are single day for the OTQT to create and ability to choose from a variety of pre- covered by the 1 minute, 30 minute, and return a data mart in response to defined selection criteria,’’ 32 including, 6 hour requirements in the CAT NMS targeted search requests with a required among other things, the ‘‘CAT Reporter Plan set forth above,36 whereas response time of one minute under correction rate over time’’ (or, the ‘‘Error Appendix D, Section 8.1.2 of the CAT 33 Section 8.1.2 of Appendix D.’’ 26 Correction Rate Functionality’’). NMS Plan separately provides that Section 8.1.2 of Appendix D of the CAT ‘‘[f]or the complex queries that either The Participants therefore request NMS Plan further sets forth minimum scan large volumes of data (e.g., temporary exemptive relief from performance requirements for OTQT multiple trade dates) or return large compliance with the Search Return searches that include equities and result sets (≤1M records), the response Functionality and the Simultaneous options trade data only in the search time must generally be available within Query Functionality requirements of criteria, including returning results 24 hours of the submission of the Section 8.1.2 of Appendix D of the CAT within the following timeframes: (1) request.’’ 37 Under the CAT NMS Plan, NMS Plan until July 31, 2023.27 During ‘‘within 1 minute for all trades and therefore, queries for ‘‘related lifecycle the period of the exemption, the related lifecycle events for a specific events’’ are not ‘‘complex queries’’ and Participants assert that they will Customer or CAT Reporter with the thus the 24 hour requirement does not ‘‘continue to assess the performance of ability to filter by security and time apply. If queries including ‘‘related the OTQT and look for opportunities to range for a specified time window up to lifecycle events’’ were ‘‘complex further reduce the time that it takes to and including an entire day’’; (2) queries,’’ then any query that included build the data mart in response to OTQT ‘‘within 30 minutes for all trades and ‘‘related lifecycle events’’ would be queries on a consistent basis.’’ 28 In this related lifecycle events for a specific subject to the 24 hour requirement. This respect, the Participants represent that Customer or CAT Reporter in a specified is not consistent with the language of they have been working with the Plan date range (maximum 1 month)’’; and the CAT NMS Plan. Rather, based on the Processor to reduce the time that it takes (3) ‘‘within 6 hours for all trades and language of the CAT NMS Plan, ‘‘related to populate an OTQT data mart.29 They related lifecycle events for a specific lifecycle events’’ are included in, and explain that the Plan Processor runs Customer or CAT Reporter in a specified thus are subject to, the 1 minute, 30 ‘‘multiple benchmark queries each day date range (maximum 12-month minute, and 6 hour requirements for that are designed to measure system duration from the most recent 24 OTQT searches that include equities performance given CAT Data sets and 34 months).’’ and options trade data only as search query usage, including the times to The timeframe for ‘‘returning results’’ criteria. Interpreting any query that create data marts for various types of in Section 8.1.2 of Appendix D (i.e., the includes ‘‘related lifecycle events’’ as a queries and responses during time to ‘‘return results’’ or the ‘‘Search ‘‘complex query’’ contradicts the simultaneous querying,’’ and shares its Return Functionality’’) begins with the presence of ‘‘related lifecycle events’’ in results with the Participants and the submission of the query in the OTQT the CAT NMS Plan language setting Commission to identify areas for and ends with the return of the results forth the 1 minute, 30 minute, and 6 potential performance enhancements.30 of the query to the user; it does not hour requirements. The Participant Letter further states that begin with the population of a data Appendix D, Section 8.1.2 also such efforts have already reduced the mart. ‘‘Returning results’’ captures the requires that ‘‘[t]he online targeted entirety of the time it takes to generate query tool must be able to process up to 24 See id. With respect to complex queries, the results in response to the user’s initial 300 simultaneous query requests with Participants state that the OTQT returns data marts query. If the query response time to regulatory users ‘‘well before’’ the 24-hour time no performance degradation’’ (or, the limit set forth in the CAT NMS Plan. See id.; see requirements for ‘‘returning results’’ ‘‘Simultaneous Query Functionality’’).38 also CAT NMS Plan, supra note 3, at Appendix D, begins at a time later than the time the As stated above, the timeframe for Section 8.1.2. However, the Participants also state query was submitted, query response ‘‘returning results’’ begins with the that ‘‘a request for related lifecycles makes a query times would fail to fully reflect the total complex.’’ See Participant Letter, supra note 4, at submission of the query in the OTQT 5 n.18. The Commission does not agree that a time necessary for the OTQT to generate and ends with the return of the results request for related lifecycles makes a query results, and display them to the user.35 of the query to the user. The complex. See Part III infra for further discussion of Commission understands that the the OTQT requirements set forth in the CAT NMS 31 See id. Participants have not yet determined the Plan. In addition, and as discussed in Part III infra, 32 See CAT NMS Plan, supra note 3, at the Commission believes that the timeframe for 6.10(c)(i)(A). meaning of ‘‘performance degradation,’’ ‘‘returning results’’ in Section 8.1.2 of Appendix D 33 See id. at Appendix D, Section 8.1.1. of the CAT NMS Plan begins with the submission 34 See id. at Appendix D, Section 8.1.2. 8.1.1. Since the CAT NMS Plan requires the OTQT of the query in the OTQT and ends with the return to record the date and time the query request is of the results of the query to the user inclusive of 35 Appendix D, Section 8.1.1 requires that the OTQT ‘‘must provide a record count of the result submitted, the query response times set forth in the related linkages. CAT NMS Plan should be based on this 25 See Participant Letter, supra note 4, at 4. set, the date and time the query request is submitted, and the date and time the result set is information. 26 See id. at 4–5. 36 provided to the users.’’ It also requires that the See, e.g., note 34 supra. 27 See id. at 6. OTQT must ‘‘log submitted queries and parameters 37 See CAT NMS Plan, supra note 3, at Appendix 28 See id. used in the query, the user ID of the submitter, the D, Section 8.1.2. 29 See id. at 5. date and time of the submission, as well as the 38 See CAT NMS Plan, supra note 3, at Appendix 30 See id. delivery of results.’’ See id. at Appendix D, Section D, Section 8.1.1.

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but the Commission believes investors, the maintenance of fair and and/or validated (unlinked) data via the ‘‘performance degradation’’ on query orderly markets and the removal of OTQT,45 and information regarding the requests should be based on the ability impediments to, and the perfection of CAT Reporter correction rate over time of the OTQT to meet the above- the mechanisms of, a national market will likewise be available for described timeframes set forth by system. The OTQT is an important compliance review purposes through Appendix D, Section 8.1.2 of the CAT regulatory tool required by the CAT the CAT Reporter Portal and/or the Plan NMS Plan.39 Performance degradation is NMS Plan; it is one of only three access Processor’s BDSQL tool by December a deterioration in performance as methods that regulators have to query 2020.46 measured according to a certain CAT Data, and it is the only method that With respect to the Search Return standard. The Commission believes it is can be used by regulatory staff without Functionality and the Simultaneous reasonable to assess ‘‘performance programming experience to directly Query Functionality requirements, the degradation’’ based on a measurement access the CAT using tools provided by Participants request that temporary of performance against the CAT NMS the Plan Processor. Thus, it is consistent exemptive relief be granted until July Plan and service level agreement with the public interest, the protection 31, 2023. The Commission believes this (‘‘SLA’’) requirements,40 because the of investors, and the maintenance of fair deadline will give the Participants and Participants are already required to meet and orderly markets that all facets of the the Plan Processor sufficient time to these standards. Thus, if the OTQT is OTQT are implemented consistent with develop the necessary systems and able to process up to 300 simultaneous the CAT NMS Plan. The Commission technology. query requests while meeting the CAT understands that implementing the The Commission is also conditioning NMS Plan and SLA requirements, there above-described functionality will this temporary exemptive relief on the would be no ‘‘performance require software development and following: degradation.’’ 41 architectural changes to the existing First, as a condition to this exemptive Section 36 of the Exchange Act grants OTQT. Providing the requested relief, the Participants would be the Commission the authority, with temporary exemptive relief will give the required to satisfy all other certain limitations, to ‘‘conditionally or Participants additional time to properly requirements of the Full unconditionally exempt any person, implement the above-described Implementation of Core Equity security, or transaction . . . from any functionality. The Commission believes Reporting Requirements milestone by provision or provisions of [the Exchange that the long-term benefits of allowing December 31, 2020.47 Act] or of any rule or regulation the Participants sufficient time to Second, to better enable the thereunder, to the extent that such correctly implement these facets of the Commission to monitor progress exemption is necessary or appropriate OTQT outweigh any concerns regarding towards the reduction of query response in the public interest, and is consistent the impact of delayed implementation. times, the Participants would be with the protection of investors.’’ 42 Rule The Commission also believes that required, as a condition to this 608(e) of Regulation NMS under the providing the requested exemptive relief exemptive relief, to perform the Exchange Act authorizes the on the schedule proposed by the following benchmark queries to Commission to exempt, either Participants is appropriate. With respect measure, on a monthly basis, the unconditionally or on specified terms to the Error Correction Rate timeframes in which the OTQT returns and conditions, any self-regulatory Functionality requirements, the results for the following types of organization, member thereof, or Participants request that temporary queries: (1) All trades and related specified security, from the provisions exemptive relief be granted until April lifecycle linkages and/or events for a of the rule if the Commission 30, 2021. This schedule will align the specific Customer or CAT Reporter with determines that such exemption is release of the Error Correction Rate the ability to filter by security and time consistent with the public interest, the Functionality with another planned range for a specified time window up to protection of investors, the maintenance functionality release,44 while still and including an entire day; (2) all of fair and orderly markets and the providing a certain deadline that will trades and related lifecycle linkages removal of impediments to, and encourage progress towards the and/or events for a specific Customer or perfection of the mechanisms of, a implementation of the required OTQT CAT Reporter in a specified date range national market system.43 functionality. The Commission believes The Commission believes that, that such alignment will enable the 45 See id. at 3. pursuant to Section 36 of the Exchange SROs to leverage planned functionality 46 See id. at 3. However, the Error Correction Rate Functionality is still critical, as it will facilitate a Act, the temporary exemptive relief release activities—including user requested by the Participants is regulatory user’s ability to determine the quality of acceptance testing, documentation, and CAT Data for regulatory use (versus compliance appropriate in the public interest and approvals—for the release of the Error review purposes). consistent with the protection of Correction Rate Functionality. 47 See note 13 supra. To the extent that the investors, and that, pursuant to Rule Moreover, the Commission believes that Participants are availing themselves of exemptive 608(e) under the Exchange Act, the relief from a CAT NMS Plan requirement, including granting the requested exemptive relief requirements relating to Error Correction Rate temporary exemptive relief requested by on the schedule proposed by the Functionality, Search Return Functionality, and the Participants is consistent with the Participants would have only a limited Simultaneous Query Functionality, such public interest, the protection of requirement shall not be included in the impact on regulators’ utilization of the requirements for the Full Implementation of Core OTQT. As stated in the Participant Equity Reporting Requirements milestone, provided 39 See, e.g., notes 34–37 and associated text supra. Letter, the Participants and the that the conditions of the exemption are satisfied. 40 See CAT NMS Plan, supra note 3, at Appendix Commission currently have access to a However, to meet the Full Implementation of Core D, Section 8.5 (requiring the establishment of SLAs Equity Reporting Requirements milestone, all other for ‘‘query performance and response times’’). variety of fields of processed CAT Data functionality required by Section 8.1.1 and Section 41 The OTQT is required at all times to meet the 8.1.2 of Appendix D of the CAT NMS Plan must CAT NMS Plan requirement to process up to 300 44 This release will include, among other things, incorporate the relevant equities transaction data simultaneous query requests with no performance industry member reporting of new equity exchange and be available to Participants and to the degradation. order book and volume concentration data and Commission. See CAT NMS Plan, supra note 3, at 42 15 U.S.C. 78mm(a)(1). expanded OTQT functionality related to this data. Section 1.1 (‘‘Full Implementation of Core Equity 43 17 CFR 242.608(e). See id. at 3. Requirements’’ definition).

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(maximum 1 month); and (3) all trades queries. These measurements should be L/PD, SA–5, Suite 5H03, Washington, and related lifecycle linkages and/or provided to the Operating Committee on DC 20522–0505. events for a specific Customer or CAT a monthly basis and should be clearly SUPPLEMENTARY INFORMATION: The Reporter in a specified date range set forth as factual indicators in the foregoing determinations were made (maximum 12-month duration from the Quarterly Progress Reports required by pursuant to the authority vested in me most recent 24 months). For each Section 6.6(c) of the CAT NMS Plan. by the Act of October 19, 1965 (79 Stat. benchmark query, the Participants IV. Conclusion 985; 22 U.S.C. 2459), Executive Order should provide the average, standard 12047 of March 27, 1978, the Foreign deviation, maximum, and minimum Accordingly, it is hereby ordered, Affairs Reform and Restructuring Act of timeframes in which the OTQT returns pursuant to Section 36(a)(1) of the 1998 (112 Stat. 2681, et seq.; 22 U.S.C. results, as the Commission believes it is Exchange Act 50 and Rule 608(e) under 51 6501 note, et seq.), Delegation of important to capture not only the Exchange Act, that the Authority No. 234 of October 1, 1999, information regarding the average Commission grants the Participants’ and Delegation of Authority No. 236–3 timeframes in which the OTQT returns request for temporary exemptive relief, of August 28, 2000. results, but also information regarding as set forth in the Participant Letter and the variability and consistency of the subject to the conditions described Marie Therese Porter Royce, timeframes in which the OTQT returns herein, from the requirements in Section Assistant Secretary, Educational and Cultural results. In addition, for each benchmark 8.1.1 of Appendix D of the CAT NMS Affairs, Department of State. query, the Participants should use all Plan with respect to the Error Correction [FR Doc. 2020–28165 Filed 12–21–20; 8:45 am] available CAT Data, including Rate Functionality until April 30, 2021 BILLING CODE 4710–05–P Participant data submitted by FINRA and from the requirements in Section and national securities exchanges, data 8.1.2 of Appendix D of the CAT NMS submitted by Industry Members,48 and Plan with respect to the Search Return DEPARTMENT OF TRANSPORTATION other data. Finally, the Participants Functionality and the Simultaneous should provide monthly reports Query Functionality until July 31, 2023. Federal Aviation Administration regarding any actual queries done by By the Commission. [Docket No. FAA–2020–0997] regulatory users with the average, J. Matthew DeLesDernier, standard deviation, maximum, and Assistant Secretary. Agency Information Collection minimum timeframes in which the [FR Doc. 2020–28153 Filed 12–21–20; 8:45 am] Activities: Requests for Comments; OTQT returns results for actual queries. BILLING CODE 8011–01–P Clearance of Renewed Approval of All of the above-described Information Collection: Noise measurements should be provided to Certification Standards for Subsonic the Operating Committee on a monthly DEPARTMENT OF STATE Jet Airplanes and Subsonic Transport basis and should be clearly set forth as Category Large Airplanes factual indicators in the Quarterly [Public Notice: 11284] Progress Reports required by Section AGENCY: Federal Aviation 6.6(c) of the CAT NMS Plan. This Notice of Determinations; Culturally Administration (FAA), DOT. condition will permit the Commission Significant Objects Being Imported for ACTION: Notice and request for and the public to track the Participants’ Exhibition—Determinations: comments. progress towards meeting the above- ‘‘Fotoclubismo: Brazilian Modernist described CAT NMS Plan requirements Photography, 1946–1964’’ Exhibition SUMMARY: In accordance with the Paperwork Reduction Act of 1995, FAA and providing regulators with an SUMMARY: Notice is hereby given of the effective OTQT by the July 31, 2023 following determinations: I hereby invites public comments about our deadline.49 determine that certain objects being intention to request the Office of Third, to better enable the imported from abroad pursuant to Management and Budget (OMB) Commission to monitor their progress agreements with their foreign owners or approval to renew an information towards meeting the parallel processing custodians for temporary display in the collection. The Federal Register Notice requirements of the CAT NMS Plan, the exhibition ‘‘Fotoclubismo: Brazilian with a 60-day comment period soliciting Participants would also be required, as Modernist Photography, 1946–1964’’ at comments on the following collection of a condition to this exemptive relief, to The Museum of Modern Art, New York, information was published on October measure on a monthly basis, using New York, and at possible additional 21, 2020. benchmark queries, the time it takes to exhibitions or venues yet to be DATES: Written comments should be provide results to users from OTQT determined, are of cultural significance, submitted by January 21, 2021. searches that are run concurrently with and, further, that their temporary ADDRESSES: Interested persons are either 50–100, 100–200, or 200–300 exhibition or display within the United invited to submit written comments on queries, and to evaluate whether such States as aforementioned is in the the proposed information collection to results otherwise meet current CAT national interest. I have ordered that the Office of Information and Regulatory NMS Plan and SLA performance Public Notice of these determinations be Affairs, Office of Management and requirements for targeted and complex published in the Federal Register. Budget. Comments should be addressed FOR FURTHER INFORMATION CONTACT: Chi to the attention of the Desk Officer, 48 ‘‘Industry Member’’ is a defined term under the D. Tran, Program Administrator, Office Department of Transportation/FAA, and CAT NMS Plan and means ‘‘means a member of a _ national securities exchange or a member of a of the Legal Adviser, U.S. Department of sent via electronic mail to oira national securities association.’’ See CAT NMS State (telephone: 202–632–6471; email: [email protected], or faxed to Plan, supra note 3, at Section 1.1. [email protected]). The mailing (202) 395–6974, or mailed to the Office 49 Pursuant to Section 6.6(c)(ii) of the CAT NMS address is U.S. Department of State, of Information and Regulatory Affairs, Plan, Quarterly Progress Reports must be filed with the Commission and made publicly available on Office of Management and Budget, each SRO’s website or collectively on the CAT NMS 50 15 U.S.C. 78mm(a)(1). Docket Library, Room 10102, 725 17th Plan website. 51 17 CFR 242.608(e). Street NW, Washington, DC 20503.

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FOR FURTHER INFORMATION CONTACT: applicant wants to certificate an aircraft Association (IATA) Level 2 airports in Sandy Liu by email at: sandy.liu@ type. Without this data collection, the the United States with regard to the faa.gov; phone: 202–267–4748 FAA would be unable to make the Summer 2021 scheduling season ending SUPPLEMENTARY INFORMATION: The required noise certification compliance on October 30, 2021. Two options are collection involves the noise finding. presented for comment: Continuation of certification regulations of 14 CFR part Respondents: Aircraft manufacturer/ the existing relief that the FAA has 36 for aircraft. This includes applicant seeking type certification; provided at these airports through information collection requirements for Frequency: Estimated 14 total March 27, 2021, on the same terms the noise certification of subsonic applicants per year; currently in effect; and a proposal by the aircraft—jet airplanes and subsonic Estimated Average Burden per Worldwide Airport Slot Board (WASB), transport category large airplanes, small Response: Estimated 200 hours per which includes representatives of IATA, propeller driven airplanes and applicant for the compliance report; and the Airports Council International- Estimated Total Annual Burden: rotorcraft. The information collected are World (ACI World), and the Worldwide $25,000 per applicant or cumulative the results of noise certification tests Airport Coordinators Group (WWACG). total $350,000 per year for 14 that demonstrate compliance with 14 The FAA invites comment on these two applicants. different approaches for the Summer CFR part 36. The original information Public Comments Invited: You are collection was implemented to show 2021 scheduling season and anticipates asked to comment on any aspect of this subsequently providing notice of its compliance in accordance with the information collection, including (a) Aircraft Noise Abatement Act of 1968; final decision. Commenters may also Whether the proposed collection of propose different or additional options that statute is now part of the overall information is necessary for FAA’s codification of the FAA’s regulatory for relief. The FAA further invites performance; (b) the accuracy of the comment on whether the proposal authority over aircraft noise in 49 U.S.C. estimated burden; (c) ways for FAA to 44715. The noise compliance report is adopted by the FAA should make relief enhance the quality, utility and clarity available for the full duration of the used by the FAA in making a finding of the information collection; and (d) that the airplane is in noise compliance Summer 2021 scheduling season, which ways that the burden could be ends on October 30, 2021. with the regulations. These compliance minimized without reducing the quality DATES: reports are required only once when an of the collected information. The agency Submit comments on or before applicant wants to certificate an aircraft will summarize and/or include your December 29, 2020. type. Without this data collection, the comments in the request for OMB’s ADDRESSES: Send comments on this FAA would be unable to make the clearance of this information collection. proposal to the U.S. Department of required noise certification compliance Transportation, Docket Operations, 1200 finding. Issued in Washington, DC, on December New Jersey Avenue SE, West Building 17, 2020. OMB Control Number: 2120–0659. Ground Floor, Room W12–140, Title: Noise Certification Standards Sandy Liu, Washington, DC 20590–0001; telephone: for Subsonic Jet Airplanes and Subsonic Engineer, Office of Environment and Energy, (800) 647–5527, or (202) 366–9826. You Transport Category Large Airplanes. Noise Division (AEE–100). must identify FAA Docket Number Form Numbers: None. [FR Doc. 2020–28225 Filed 12–21–20; 8:45 am] FAA–2020–0862 at the beginning of Type of Review: Renewal of an BILLING CODE 4910–13–P your comments. You may also submit information collection. comments through the internet at Background: The Federal Register https://www.regulations.gov. DEPARTMENT OF TRANSPORTATION Notice with a 60-day comment period FOR FURTHER INFORMATION CONTACT: soliciting comments on the following Federal Aviation Administration Bonnie Dragotto, Office of the Chief collection of information was published Counsel, Regulations Division, Federal on October 21, 2020 (85 FR 67089). The [Docket No. FAA–2020–0862] Aviation Administration, 800 aircraft noise information collected are COVID–19 Related Relief Concerning Independence Avenue SW, Washington, the results of noise certification tests DC 20591; telephone: (202) 267–3808; that demonstrate compliance with 14 Operations at Chicago O’Hare International Airport, John F. Kennedy email: [email protected]. CFR part 36. The original information SUPPLEMENTARY INFORMATION: collection was implemented to show International Airport, Los Angeles compliance in accordance with the International Airport, Newark Liberty Current Slot Usage and Related Relief Aircraft Noise Abatement Act of 1968; International Airport, New York Due to COVID–19 LaGuardia Airport, Ronald Reagan that statute is now part of the overall In a notice published in the Federal codification of the FAA’s regulatory Washington National Airport, and San Francisco International Airport for the Register on October 7, 2020 (85 FR authority over aircraft noise in 49 U.S.C. 1 Summer 2021 Scheduling Season 63335), the FAA made available to slot 44715. For the recent NPRM, the FAA holders at John F. Kennedy proposes to revise this PRA collection to AGENCY: Federal Aviation International Airport (JFK), New York include noise test data collections of Administration (FAA), Department of LaGuardia Airport (LGA), and Ronald supersonic aircraft, for an increased Transportation (DOT). estimate of 16 total noise certification ACTION: Notice of proposed extension of 1 The FAA has authority for developing ‘‘plans projects per year. Each applicant’s a limited, conditional waiver of the and policy for the use of the navigable airspace and collected information is incorporated for assigning ‘‘by regulation or order the use of the minimum slot usage requirement. airspace necessary to ensure the safety of aircraft into a noise compliance report that is and the efficient use of airspace.’’ 49 U.S.C. provided to and approved by the FAA. SUMMARY: Due to ongoing coronavirus 40103(b)(1). The FAA manages slot usage The noise compliance report is used by disease 2019 (COVID–19)-related requirements under the authority of 14 CFR 93.227 the FAA in making a finding that the impacts on demand for air travel, the at DCA and under the authority of Orders at JFK and LGA. See Operating Limitations at John F. airplane is in noise compliance with the FAA seeks comment on providing Kennedy International Airport, 85 FR 58258 (Sep. regulations. These compliance reports additional relief at slot-controlled and 18, 2020); Operating Limitations at New York are required only once when an designated International Air Transport LaGuardia Airport, 85 FR 58255 (Sep. 18, 2020).

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Reagan Washington National Airport International Airport (ORD), Newark 1.6 million deaths globally since the (DCA) a waiver from the minimum slot Liberty International Airport (EWR), Los start of the public health emergency.3 usage requirements due to continuing Angeles International Airport (LAX), International travel advisories issued COVID–19 impacts through March 27, and San Francisco International Airport by the U.S. Department of State’s Global 2021,2 subject to each of the following (SFO)—the FAA determined to extend Health Advisory remain in effect conditions: through March 27, 2021 its policy for worldwide, including designations of (1) All slots not intended to be prioritizing flights canceled due to either Level 3—Reconsider Travel or operated must be returned at least four COVID–19 for purposes of establishing Level 4—Do Not Travel for more than weeks prior to the date of the FAA- a carrier’s operational baseline in the 175 destinations.4 The U.S. Department approved operation to allow other next corresponding season, subject to of State advises that challenges to any carriers an opportunity to operate these the following conditions: international travel at this time may slots on an ad hoc basis without historic (1) All schedules as initially include mandatory quarantines, travel precedence. submitted by carriers and approved by restrictions, and closed borders. The (2) The waiver does not apply to slots the FAA and not intended to be U.S. Department of State notes further newly allocated for initial use during operated must be returned at least four that foreign governments may the Winter 2020/2021 season. New weeks prior to the date of the FAA- implement restrictions with little notice, allocations meeting minimum usage approved operation to allow other even in destinations that were requirements remain eligible for historic carriers an opportunity to operate these previously low risk.5 Accordingly, the precedence. The waiver does not apply times on an ad hoc basis without U.S. Department of State warns to historic in-kind slots within any 30- historic precedence. Americans choosing to travel minute or 60-minute time period, as (2) The priority for FAA schedules internationally that their trip may be applicable, in which a carrier seeks and approved for Winter 2020/2021 does not disrupted severely and it may be obtains a similar new allocation (i.e., apply to net-newly approved operations difficult to arrange travel back to the arrival or departure, air carrier or for initial use during the Winter 2020/ United States.6 commuter, if applicable). 2021 season. New approved times (3) The waiver does not apply to slots Moreover, international travel would remain eligible for priority newly transferred on an uneven basis recommendations from the Centers for consideration in Winter 2021/2022 if (i.e., via one-way slot transaction/lease) Disease Control and Prevention (CDC) actually operated in Winter 2020/2021 after October 15, 2020, for the duration categorize nearly 175 countries, areas, according to established processes. and territories worldwide under Level of the transfer. Slots transferred prior to 7 this date may benefit from the waiver if Consistent with the policy for slot- 4—COVID–19 Risk Is Very High. all other conditions are met. Slots controlled airports, limited exceptions Within the United States, the CDC granted historic precedence for may be granted from either or both of reported 16,756,581 total cases and subsequent seasons based on this relief these conditions at Level 2 airports 306,427 deaths from COVID–19 as of are not eligible for transfer if the slot under extraordinary circumstances if a December 17, 2020, with 1,485,010 new 8 holder ceases all operations at the government’s official action (e.g., travel cases in the prior seven days. The CDC airport. prohibition or other restriction due to advises prospective domestic travelers Additionally, an exception may be COVID–19), prevents the operation of a to consider whether their destination granted and the waiver therefore flight on a particular route that a carrier has requirements or restrictions for applied, if a government’s official action otherwise intended to operate. This travelers, and notes that State, local, and (e.g., travel prohibition or other exception applies under extraordinary territorial governments may have travel restriction due to COVID–19), prevents circumstances only in which a carrier is restrictions in place, including testing the operation of a flight on a particular able to demonstrate an inability to requirements, stay-at-home orders, and route that a carrier otherwise intended operate a particular flight or comply quarantine requirements upon arrival. A to operate. This exception is being with the conditions of the proposed national emergency related to COVID– administered by the FAA in waiver due to an official governmental 19 remains in effect pursuant to the coordination with the Office of the prohibition or restriction. If the President’s March 13, 2020 Secretary of Transportation (OST). This exception is determined not to apply, Proclamation.9 exception applies under extraordinary carriers are expected to meet the circumstances only in which a carrier is conditions for relief or operate 3 COVID–19 weekly epidemiological update, able to demonstrate an inability to consistent with standard expectations December 15, 2020, available at: https:// for the Level 2 environment. This www.who.int/emergencies/diseases/novel- operate a particular flight or comply coronavirus-2019/situation-reports See also https:// with the conditions of the proposed limited, conditional relief remains covid19.who.int/for WHO COVID–19 Dashboard waiver due to an official governmental available through March 27, 2021. with the most current number of cases reported. 4 prohibition or restriction. Current COVID–19 Situation https://travel.state.gov/content/travel/en/ In addition, at designated IATA Level traveladvisories/traveladvisories.html/. 2 U.S. airports—Chicago O’Hare Since the FAA’s October 7, 2020 5 https://travel.state.gov/content/travel/en/ notice was published, COVID–19 has traveladvisories/ea/covid-19-information.html. 6 Id. 2 Although DCA and LGA are not designated as continued to cause disruption globally 7 https://www.cdc.gov/coronavirus/2019-ncov/ IATA Level 3 slot-controlled airports given that and within the United States. The travelers/map-and-travel-notices.html. these airports primarily serve domestic 8 destinations, the FAA limits operations at these World Health Organization (WHO) CDC COVID Data Tracker, updated October 2, airports via rules at DCA and an Order at LGA that reports COVID–19 cases in more than 2020, available at https://covid.cdc.gov/covid-data- _ _ are equivalent to IATA Level 3. See FN 1. The FAA 200 countries, areas, and territories tracker/?CDC AA refVal=https%3A%2F%2Fwww.cdc.gov%2 reiterates that the relief provided in the March 16, worldwide. For the week ending 2020, notice (85 FR 15018), the April 17, 2020, Fcoronavirus%2F2019-ncov%2Fcases- _ notice (85 FR 21500), and the October 7, 2020, December 13, 2020, the WHO reported updates%2Fcases-in-us.html#cases notice (85 FR 63335), extends to all allocated slots, approximately 4.3 million new COVID– casesinlast7days. including slots allocated by exemption. As 19 cases and over 75,000 new deaths, 9 https://www.whitehouse.gov/presidential- proposed in this notice, either option would bringing the cumulative total to 70.5 actions/proclamation-declaring-national- similarly apply to all allocated slots, including slots emergency-concerning-novel-coronavirus-disease- allocated by exemption. million reported COVID–19 cases and covid-19-outbreak/.

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On May 15, 2020, the President When making decisions concerning March 27, 2021. As part of this option, announced the establishment of historical rights to allocated slots, the FAA would also extend through Operation Warp Speed (OWS), a including whether to grant a waiver of October 30, 2021 its COVID–19-related national program to accelerate the the usage requirement, the FAA seeks to policy for prioritizing flights canceled or development, manufacturing, and ensure the efficient use of valuable otherwise not operated as originally distribution of COVID–19 vaccines, aviation infrastructure and maximize intended at designated IATA Level 2 therapeutics, and diagnostics.10 On the benefits to airport users and the airports in the United States on a December 11, 2020, the Food and Drug traveling public. This minimum usage conditional basis, for purposes of Administration (FDA) granted an requirement is expected to establishing a carrier’s operational emergency use authorization for a accommodate routine cancelations baseline in the next corresponding COVID–19 vaccine and phased under all but the most unusual season (i.e., Summer 2022). The distribution of that vaccine is now circumstances. Carriers proceed at risk proposed extension would be made underway in the United States; FDA if, at any time prior to a final decision, available on the same terms announced also is nearing potential authorization of they make decisions in anticipation of in the FAA’s October 7, 2020 decision a second vaccine.11 Vaccine distribution the FAA granting a slot usage waiver. (85 FR 63335), as summarized also has begun on a limited basis previously in this notice in the section Discussion of Proposals for Additional elsewhere in the world. titled Current Slot Usage and Related Relief Relief Due to COVID–19. Standard Applicable to This Waiver At the present time, COVID–19 As explained in the FAA’s October 7, Proceeding continues to present a highly unusual 2020 decision, the FAA believes the The FAA reiterates the standards and unpredictable condition that is relief provided on a conditional basis applicable to petitions for waivers of the beyond the control of carriers. through the end of the Winter 2020/ minimum slot usage requirements in According to data submitted by Airlines 2021 season at slot-controlled and effect at DCA, JFK, and LGA, as for America (A4A), passenger demand designated IATA Level 2 airports in the discussed in the FAA’s initial decision has weakened dramatically as a result of United States addresses ongoing extending relief due to COVID–19 the recent COVID–19 resurgence and a COVID–19-related impacts. The FAA impacts.12 return to 2019 passenger volumes is not continues to believe this approach At JFK and LGA, each slot must be expected until calendar year 2023 or provides carriers with flexibility during used at least 80 percent of the time.13 2024.17 The ultimate duration and this unprecedented situation, supports Slots not meeting the minimum usage severity of COVID–19 impacts on the long-term viability of carrier requirements will be withdrawn. The passenger demand in the United States operations at slot-controlled airports FAA may waive the 80 percent usage and internationally remain unclear even while also supporting economic requirement in the event of a highly as the distribution of a vaccine is recovery, and reduces the potential to unusual and unpredictable condition underway in certain parts of the world. suppress flight operations for which that is beyond the control of the slot- Since the FAA’s determination in demand exists. The FAA believes an holding air carrier and which affects October 2020 to extend relief on a extension of the current waiver would carrier operations for a period of five conditional basis through March 27, also be generally consistent with the consecutive days or more.14 2021, the FAA has received submissions approach taken by other jurisdictions to At DCA, any slot not used at least 80 from stakeholders regarding whether the date. percent of the time over a two-month FAA should extend additional relief WASB Proposal beyond March 27, 2021.18 The FAA period also will be recalled by the Another option for consideration is FAA.15 The FAA may waive this seeks comment on two proposals with respect to continuing relief with regard the WASB proposal. WASB is a forum minimum usage requirement in the for bringing together representatives event of a highly unusual and to the Summer 2021 scheduling season, which ends on October 30, 2021. from the airport, airline, and slot unpredictable condition that is beyond coordinator communities to develop the control of the slot-holding carrier Commenters may also suggest other options for consideration. Absent positions on slot management rules and and which exists for a period of nine or standards to be applied globally in the 16 further relief, the existing relief will more days. Worldwide Airport Slot Guidelines expire on March 27, 2021 and standard (WASG).19 The WASB proposal 10 requirements and policies will apply. https://www.hhs.gov/about/news/2020/05/15/ includes the following provisions, trump-administration-announces-framework-and- leadership-for-operation-warp-speed.html. Extension of Current Relief Made which are described herein as they 11 https://www.fda.gov/emergency-preparedness- Available by the FAA on a Conditional would be applied in the United States: and-response/coronavirus-disease-2019-covid-19/ Basis • Slot holders that ensure the return covid-19-vaccines. As one option for consideration, the of any slot as allocated by the FAA for 12 See 85 FR 15018 (Mar. 16, 2020). the duration of the Summer 2021 season 13 Operating Limitations at John F. Kennedy FAA is proposing to extend through October 30, 2021, the COVID–19-related (identified by Slot ID and/or flight International Airport, 85 FR 58258 (Sep. 18, 2020); number, as appropriate) on or before Operating Limitations at New York LaGuardia limited waiver of the minimum slot Airport, 85 FR 47065 at 58255 (Sep. 18, 2020). usage requirement at JFK, LGA, and February 8, 2021 (approximately 7 14 At JFK, historical rights to operating DCA that the FAA has already made weeks before the start of the season) authorizations and withdrawal of those rights due would retain historic precedence for available on a conditional basis through to insufficient usage will be determined on a that slot in the Summer 2022 scheduling seasonal basis and in accordance with the schedule season; newly allocated slots are not approved by the FAA prior to the commencement 17 See December 7, 2020 presentation by Airlines of the applicable season. See JFK Order, 85 FR for America titled ‘‘Tracking the Impacts of COVID– eligible for this provision; eligible slots 58260. At LGA, any operating authorization not 19,’’ a copy of which has been placed in the docket used at least 80 percent of the time over a two- for this notice. 19 The detailed proposal can be accessed in the month period will be withdrawn by the FAA. See 18 Copies of all submissions to the DOT and FAA docket for this notice and at the following website: LGA Order, 85 FR at 58257. concerning the continuation of COVID-related relief https://www.iata.org/contentassets/ 15 See 14 CFR 93.227(a). have been placed in the docket associated with this 37a569b171504493be1d2ddd7d53f1f2/wasb- 16 See 14 CFR 93.227(j). notice. recommendation-s21airportslotalleviation.pdf.

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returned before the deadline would be on further relief for prioritizing flights commercial or financial information available for re-allocation on a non- canceled due to COVID–19 at that is customarily treated as private, permanent basis for operation during designated IATA Level 2 airports. The that you actually treat as private, and the Summer 2021 season; slots operated FAA further notes that certain that is relevant or responsive to this as approved on a non-historic basis in provisions and concepts of the detailed notice, it is important that you clearly Summer 2021 would have priority over WASB proposal would not necessarily designate the submitted comments, or new demands for the same timings in apply in the United States to the extent any relevant portions thereof, as CBI. the next equivalent season, subject to that there are established differences in Please mark each page of your capacity availability and any other legal effect under established rules and orders submission containing CBI as conditions; governing slot management in the ‘‘PROPIN.’’ Comments containing • For slots not returned by February United States. For example, traditional PROPIN may be submitted by email to 8, 2021, the usual minimum slot usage concepts of ‘‘series of slots’’ and the Air Traffic Organization Slot threshold of 80 percent would be provision 8.7.2.2 of the WASG have not Administration Office at 9-FAA-Slot- reduced to 50 percent during the been adopted in the United States.20 [email protected]. The FAA will treat such Summer 2021 scheduling season; and, The FAA received written submissions marked submissions as confidential • For slots not returned by February from IATA, A4A, Delta Air Lines, Inc., under FOIA, and will not place 8, 2021, an exception from the reduced and Virgin Atlantic Airways, Ltd. confidential content in the public slot usage threshold of 50 percent would expressing support for FAA adoption of docket for this notice. Any commentary be available under circumstances that this proposal. that the FAA receives that is not may prevent airlines from operating Additional Submission Regarding Relief specifically designated as CBI will be scheduled flights for reasons other than Beyond March 27, 2021 placed in the public docket for this commercial cancellations for the notice. The FAA will take the necessary duration of the circumstance plus up to In addition, the FAA has received an steps to protect properly designated a 6-week recovery period; as proposed, alternative proposal concerning relief information to the extent allowable by the FAA would accept as valid beyond March 27, 2021 from Southwest law. All routine slot administration justification for the non-utilization of Airlines Co., which takes no position on matters unrelated to this proceeding, slots, any government restrictions that the WASB proposal relative to JFK, including schedule updates, requested prevent or severely restrict travel to opposes the WASB proposal relative to changes, and information requests, specific airports, destinations (including DCA and LGA, and suggests extending should continue to be submitted to the FAA’s current relief at DCA and intermediate points) or countries for [email protected]. LGA for an additional half season at which the slot was held, such as the After receiving and reviewing most, through June 27, 2021. This following examples— comments, the FAA anticipates Æ submission has been placed in the Government travel restrictions subsequently providing notice of its docket associated with this notice. based on nationality, closed borders, final decision. government advisories related to Invitation for Comment COVID–19 that warn against all but Issued in Washington, DC, on December 17, 2020. essential travel, or complete bans on The FAA seeks views and information flights from/to certain countries or regarding these or other proposals. The Lorelei Dinges Peter, geographic areas; FAA further invites comment on Assistant Chief Counsel for Regulations. Æ Severe government restrictions whether the proposal adopted by the Virginia T. Boyle, related to COVID–19 on the maximum FAA should make relief available for the Acting Vice President, System Operations number of arriving or departing full duration of the Summer 2021 Services. passengers on a specific flight or scheduling season, which ends on [FR Doc. 2020–28324 Filed 12–18–20; 12:15 pm] October 30, 2021. Written views and through a specific airport; BILLING CODE 4910–13–P Æ Government restrictions on supporting data may be submitted no movement or quarantine/isolation later than December 29, 2020 to the measures within the country or region docket associated with this notice as DEPARTMENT OF TRANSPORTATION where the airport or destination explained previously in this notice. (including intermediate points) is Information submitted to the FAA may Federal Aviation Administration be subject to disclosure under the located; [Docket No. FAA–2020–0563] Æ Government-imposed closure of Freedom of Information Act. businesses essential to support aviation The FAA recognizes that commenters Agency Information Collection activities (e.g., closure of hotels); and may seek to submit business Activities: Requests for Comments; Æ Unforeseeable restrictions on information that is both customarily and Clearance of Renewed Approval of airline crew, including sudden bans on actually treated as confidential. Information Collection: Aircraft Noise entry or crew stranded in unexpected Confidential Business Information (CBI) Certification Documents for locations due to quarantine measures. is commercial or financial information International Operations • The following conditions would that is both customarily and actually apply: treated as private by its owner. Under AGENCY: Federal Aviation Æ Relief would not apply to slots held the Freedom of Information Act (FOIA) Administration (FAA), DOT. by an airline that permanently ceases (5 U.S.C. 552), CBI is exempt from ACTION: Notice and request for operations at the airport; and, public disclosure. If your comments comments. Æ New uneven transfers would not be responsive to this notice contain eligible for the pre-season return SUMMARY: In accordance with the provision, but would be eligible for 20 https://www.iata.org/en/policy/slots/slot- Paperwork Reduction Act of 1995, FAA other slot relief measures during the guidelines/ The FAA reiterates that under current invites public comments about our policy and procedures, the FAA continues to apply Summer 2021 season. version 9 of the Worldwide Slot Guidelines (Jan. 1, intention to request the Office of The FAA notes that the WASB 2019), a copy of which has been placed in the Management and Budget (OMB) proposal is silent concerning a position docket for this notice. approval to renew an information

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collection. The Federal Register Notice Type of Review: Renewal of an the regulations require casinos to with a 60-day comment period soliciting information collection. develop and implement written anti- comments on the following collection of Background: The Federal Register money laundering programs reasonably information was published on June 5, Notice with a 60-day comment period designed to ensure and monitor 2020. The collection aids to make the soliciting comments on the following compliance with the requirements set aircraft noise certification information collection of information was published forth in the Bank Secrecy Act easily accessible to the flight crew and on June 5, 2020 (85 FR 34711). On regulations. Although no changes are presentable upon request to the March 2, 2010, the FAA published the proposed to the information collection appropriate foreign officials for final rule Notice No. 91–312, Aircraft itself, this request for comments covers international airline operation of U.S. Noise Certification Documents for a future expansion of the scope of the carriers. The information to be collected International Operations (75 FR 9327). It annual hourly burden and cost estimate upholds the U.S. obligations under the requires operators that fly outside the associated with these regulations. This Convention on International Civil United States, using aircraft subject to request for comments is made pursuant Aviation and for which FAA policy ICAO, Annex 16, Volume 1, to carry to the Paperwork Reduction Act of 1995. comply with International Civil aircraft noise certification information DATES: Written comments are welcome, Aviation Organization (ICAO) Standards on board the aircraft. This collection is and must be received on or before and Recommended Practices to the needed to ensure consistent February 22, 2021. maximum extent practicable. Thus the international compliance with the ADDRESSES: Comments may be FAA has adopted ICAO’s Standards and ICAO, Annex 16, Volume 1, submitted by any of the following Recommended Practices as US Amendment 8 that requires certain methods: regulations as a means of compliance noise information be carried on board • Federal E-rulemaking Portal: http:// with Annex 16 and requires noise the aircraft. This information must be www.regulations.gov. Follow the documentation be carried on board easily accessible to the flight crew and instructions for submitting comments. aircraft that leave the United States. presentable upon request to the Refer to Docket Number FINCEN–2020– DATES: Written comments should be appropriate foreign National Aviation 0015 and the specific Office of submitted by January 21, 2021. Authority (NAA) officials. The Management and Budget (OMB) control collection is mandatory based on U.S. ADDRESSES: Interested persons are number 1506–0051. regulations and international standards. • Mail: Policy Division, Financial invited to submit written comments on Respondents: Operators of U.S. the proposed information collection to Crimes Enforcement Network, P.O. Box registered civil aircraft flying outside 39, Vienna, VA 22183. Refer to Docket the Office of Information and Regulatory the United States. Affairs, Office of Management and Number FINCEN–2020–0015 and OMB Frequency: 70 airplanes. control number 1506–0051. Budget. Comments should be addressed Estimated Average Burden per to the attention of the Desk Officer, Please submit comments by one Response: 25 minutes (0.42 hours). method only. Comments will also be Department of Transportation/FAA, and Estimated Total Annual Burden: $25 sent via electronic mail to oira_ × incorporated into FinCEN’s review of per airplane 70 airplanes affected = existing regulations, as provided by [email protected], or faxed to $1,750. (202) 395–6974, or mailed to the Office Treasury’s 2011 Plan for Retrospective of Information and Regulatory Affairs, Issued in Washington, DC, on December Analysis of Existing Rules. All 17, 2020. Office of Management and Budget, comments submitted in response to this Docket Library, Room 10102, 725 17th Sandy Liu, notice will become a matter of public Street NW, Washington, DC 20503. Engineer, Noise Division, Office of record. Therefore, you should submit Environment and Energy, Noise Division only information that you wish to make Public Comments Invited: You are (AEE–100). publicly available. asked to comment on any aspect of this [FR Doc. 2020–28226 Filed 12–21–20; 8:45 am] information collection, including (a) FOR FURTHER INFORMATION CONTACT: The Whether the proposed collection of BILLING CODE 4910–13–P FinCEN Regulatory Support Section at information is necessary for FAA’s 1–800–767–2825 or electronically at performance; (b) the accuracy of the [email protected]. estimated burden; (c) ways for FAA to DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: enhance the quality, utility and clarity Financial Crimes Enforcement Network I. Statutory and Regulatory Provisions of the information collection; and (d) The legislative framework generally ways that the burden could be Agency Information Collection referred to as the Bank Secrecy Act minimized without reducing the quality Activities; Proposed Renewal; (BSA) consists of the Currency and of the collected information. The agency Comment Request; Renewal Without Financial Transactions Reporting Act of will summarize and/or include your Change of Anti-Money Laundering 1970, as amended by the Uniting and comments in the request for OMB’s Program Requirements for Casinos clearance of this information collection. Strengthening America by Providing AGENCY: Financial Crimes Enforcement Appropriate Tools Required to Intercept FOR FURTHER INFORMATION CONTACT: Network (FinCEN), Treasury. and Obstruct Terrorism Act of 2001 Sandy R. Liu by email at: sandy.liu@ (USA PATRIOT Act) (Pub. L. 107–56) faa.gov; phone: 202–267–4748. ACTION: Notice and request for comments. and other legislation. The BSA is SUPPLEMENTARY INFORMATION: codified at 12 U.S.C. 1829b, 12 U.S.C. OMB Control Number: 2120–0737. SUMMARY: As part of its continuing effort 1951–1959, 31 U.S.C. 5311–5314 and Title: Aircraft Noise Certification to reduce paperwork and respondent 5316–5332, and notes thereto, with Documents for International Operations. burden, FinCEN invites comments on implementing regulations at 31 CFR Form Numbers: None. Reference: the proposed renewal, without change, Chapter X. ICAO Annex 16, Vol.1—Aircraft Noise, of a currently approved information The BSA authorizes the Secretary of Eighth edition (July 2017) Attachment G collection found in existing Bank the Treasury, inter alia, to require for format. Secrecy Act regulations. Specifically, financial institutions to keep records

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and file reports that are determined to • Propose for review and comment a burden and cost estimates of these have a high degree of usefulness in future expansion of the scope of the requirements. criminal, tax, and regulatory matters, or PRA burden (the ‘‘future annual PRA Part 1. Breakdown of the Casinos 8 in the conduct of intelligence or burden’’). Covered by This Notice counter-intelligence activities to protect Frequency: As required. The breakdown of casinos, by type, against international terrorism, and to Estimated Number of Respondents: covered by this notice is reflected in implement anti-money laundering 993 casinos.6 (AML) programs and compliance Table 1 below: Estimated Recordkeeping Burden: procedures.1 Regulations implementing the BSA appear at 31 CFR Chapter X. Part 1 of this notice describes the TABLE 1—BREAKDOWN OF CASINOS The authority of the Secretary to breakdown of the estimated number of COVERED BY THIS NOTICE, BY TYPE administer the BSA has been delegated casinos, by type. Part 2 proposes for OF FINANCIAL INSTITUTION to the Director of FinCEN.2 review and comment a renewal of the estimate of the traditional annual PRA Section 352 of the USA PATRIOT Act Type of casino Number of added subsection (h) to 31 U.S.C. 5318 hourly burden, which includes an casinos of the BSA. Section 352 mandates that annual hourly burden estimate per casino similar to the estimate used in Casino ...... 9 466 financial institutions establish AML Tribal Casino ...... 10 527 programs in order to guard against the past, with the incorporation of a money laundering. Such AML programs more robust cost estimate. The scope Total number of casinos ...... 11 993 must include, at a minimum, the and methodology used in the past following: (a) The development of assigned a total annual hourly burden Part 2. Traditional Annual PRA Burden internal policies, procedures, and estimate, per casino, to multiple and Cost recordkeeping requirements within the controls, (b) the designation of a The scope of the traditional annual compliance officer, (c) an ongoing regulations, rather than assigning an annual hourly burden estimate, per PRA burden and cost estimates in this employee training program, and (d) an renewal encompasses all of the independent audit function to test casino, to each unique AML recordkeeping requirement.7 In the past, recordkeeping requirements included in programs. Pursuant to section 352, the AML program requirements for FinCEN issued a regulation requiring one annual hourly burden estimate per casino was used to encompass all of the casinos, notably: Maintaining and casinos to develop and implement updating the written AML program 3 recordkeeping requirements included in written AML programs. This notice (Action A); storing the written AML only proposes to renew the OMB control the AML program requirements for casinos. Part 3 of this notice proposes program (Action B); producing a copy of number associated with the casino AML the written AML program if requested program regulations.4 for review and comment a methodology for a future estimate of an annual PRA by regulatory examiners or law II. Paperwork Reduction Act of 1995 burden. The estimate would include the enforcement (Action C); and complying (PRA) 5 PRA burden and cost broken down by with the requirements in 31 CFR 1021.210(b)(2)(v) and (vi) (Action D). Title: AML program requirements for each recordkeeping requirement in the The prior renewal did not break the casinos (31 CFR 1021.210, 31 CFR casino AML program regulations. requirements down into a burden 1021.410(b)(10)). Finally, Part 4 solicits input from the estimate for each recordkeeping OMB Control Number: 1506–0051. public about: (a) The accuracy of the requirement, but instead estimated that Report Number: Not applicable. traditional annual PRA burden estimate; all of the requirements combined would Abstract: FinCEN is issuing this (b) the more granular calculation needed require 100 hours.12 In future estimates, notice to renew the OMB control to establish a future annual PRA burden, FinCEN intends to estimate burden number for the AML program regulatory of the hourly and cost burden per casino based on each individual requirement requirements for casinos. AML program recordkeeping requirement; (c) the criteria, metrics, set out in 31 CFR 1021.210. Affected Public: Businesses or other For purposes of the estimate of the for-profit institutions, and non-profit and most appropriate questions FinCEN should consider when researching the AML program traditional annual PRA institutions. burden, FinCEN has made the following Type of Review: information to estimate the future • annual PRA burden; and (d) any other assumptions: Renewal without change of a (a) The written AML program is currently approved information comments about the regulations and the current and proposed future hourly stored as an electronic file. The collection. estimated annual burden (5 minutes per • Propose for review and comment a 6 Table 1, infra, below sets forth a breakdown of renewal of the portion of the PRA 8 the types of casinos covered by this notice. Card clubs are not included in the breakdown burden that has been subject to notice of casinos covered by this notice. The omission of 7 The casino AML program regulations have two card clubs in the total number of casinos in Table and comment in the past (the unique requirements. Specifically, 31 CFR 1 will reduce the total hourly burden estimate in ‘‘traditional annual PRA burden’’). 1021.210(b)(2)(v) provides that a casino must Table 2, infra, from its actual number. establish procedures for using all available 9 information to determine, when required by the According to numbers provided to FinCEN by 1 Section 358 of the USA PATRIOT Act added BSA regulatory requirements, the name, address, the American Gaming Association (AGA), there are language expanding the scope of the BSA to social security number, and other information, and 466 commercial casinos as of October 20, 2020. intelligence or counter-intelligence activities to 10 verification of the same, of a person; the occurrence According to numbers provided to FinCEN by protect against international terrorism. of any transactions or patterns of transactions the AGA, there are 527 tribal properties as of 2 Treasury Order 180–01 (re-affirmed Jan. 14, required to be reported pursuant to 31 CFR October 20, 2020. 2020). 1021.320; and whether any record as described in 11 According to numbers provided to FinCEN by 3 31 CFR 1021.210. subpart D of part 1010 or part 1021 must be made the AGA, the total number of casinos includes 223 4 Card clubs are included in the casino AML and retained. 31 CFR 1021.210(b)(2)(vi) provides commercial and tribal casinos in Nevada as of program regulations, and any reference to casinos that, for those casinos that have automated data October 20, 2020. This number does not include used in BSA regulations includes card clubs, unless processing systems, their AML compliance program restricted locations, i.e., those with 15 slot specifically noted. See 31 CFR 1010.100(t)(5)(iii). must provide for the use of automated programs to machines or fewer. 5 Public Law 104–13, 44 U.S.C. 3506(c)(2)(A). aid in ensuring compliance. 12 See 82 FR 31636 (July 7, 2017).

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financial institution) represents the law enforcement agencies, upon their time required to make the program administrative burden involved in request. FinCEN estimates the annual available to the requestor for inspection processing the storage of the written burden of producing the written (for example, the actual electronic program, and not just the time of actual program at 5 minutes per financial transmission), which would be nearly electronic storage, which would be institution. The estimated annual instantaneous. nearly instantaneous. burden represents the administrative The estimated burden associated with (b) Producing the written AML burden involved in producing the each portion of the traditional annual program electronically to regulatory or program upon request, and not just the PRA estimate is as follows:

TABLE 2—BURDEN ASSOCIATED WITH EACH PORTION OF THE TRADITIONAL ANNUAL PRA ESTIMATE

Total hourly Action Instances per year Time per instance Number of casinos 13 burden

A. Maintaining and updating the written AML 1 per casino ...... 1 hour 14 ...... 993 993 program. B. Storing the written AML program ...... 1 per casino ...... 5 minutes ...... 993 * 83 C. Producing the AML program upon request 1 per casino ...... 5 minutes ...... 993 * 83 D. Ongoing Compliance with the require- 1 per casino ...... 99 hours ...... 993 98,307 ments in 31 CFR 1021.210(b)(2)(v) and (vi).

Total Hourly Burden ...... 99,466 * 82.75 rounded to 83.

To calculate the hourly costs of the work and cross-checking all or a sample FinCEN calculated the fully-loaded burden estimate, FinCEN identified of the work product against supporting hourly wage for each of these three roles three roles and corresponding staff documentation); and (iii) clerical work by using the median wage estimated by positions involved in maintaining an (engaging in research and administrative the U.S. Bureau of Labor Statistics AML program: (i) General supervision review and filing and producing the (BLS),15 and computing an additional (providing process oversight); (ii) direct AML program on request). benefits cost as follows: supervision (reviewing operational-level

TABLE 3—FULLY-LOADED HOURLY WAGE BY ROLE AND BLS JOB POSITION FOR ALL FINANCIAL INSTITUTIONS COVERED BY THIS NOTICE

Median Benefit Fully-loaded Role BLS-code BLS-name hourly wage factor hourly wage

General supervision ...... 11–3031 Financial Manager ...... $62.45 1.50 $93.68 Direct supervision ...... 13–1041 Compliance Officer ...... 33.20 1.50 49.80 Clerical work (research, review, and filing and 43–3099 Financial Clerk...... 20.40 1.50 30.60 producing the program upon request).

FinCEN estimates that, in general and portion of the traditional annual PRA AML program documentation, the cost on average,16 each role would spend burden, as follows: of each hour of burden is estimated to different amounts of time on each For Action A set out in Table 2 above, be $48.00, as shown in Table 4 below. annually maintaining and updating the

TABLE 4—WEIGHTED AVERAGE HOURLY COST OF MAINTAINING AND UPDATING AML PROGRAM DOCUMENTATION

General supervision Direct supervision Clerical work (case review) Weighted average % time Hourly cost % time Hourly cost % time Hourly cost hourly cost

10 $9.37 60 $29.88 30 $9.18 *$48.00 *$48.43 rounded to $48.00.

13 As set out in Table 1 above. 2019, available at https://www.bls.gov/oes/ benefit/wages ratio, or 1.50. Multiplying each 14 We are estimating the annual recordkeeping tables.htm. The most recent data from the BLS hourly wage by the benefit factor produces the burden per recordkeeper as 1 hour for casinos, corresponds to May 2019. For the benefits fully-loaded hourly wage per position. consistent with our calculation of 1 hour for component of total compensation, see U.S. Bureau 16 By ‘‘in general,’’ FinCEN means without regard maintaining and updating the written AML program of Labor Statistics, Employer’s Cost per Employee to outliers (e.g., financial institutions with AML in the 60-day notice to renew AML programs for Compensation as of December 2019, available at programs with complexities that are uncommonly certain financial institutions (85 FR 49418 (Aug. 13, https://www.bls.gov/news.release/ecec.nr0.htm. The 2020)). ratio between benefits and wages for financial higher or lower than those of the population at 15 The U.S. Bureau of Labor Statistics, activities is $15.95 (hourly benefits)/$32.05 (hourly large). By ‘‘on average,’’ FinCEN means the mean Occupational Employment Statistics-National, May wages) = 0.50. The benefit factor is 1 plus the of the distribution of each subset of the population.

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For Actions B, C, and D set out in • Action B—storing the AML • Action D—complying with Table 2 above, the cost of each hour of program. requirements in 31 CFR burden is estimated to be $33.00, as • Action C—producing of the AML 1021.210(b)(2)(v) and (vi). shown in Table 5 below: program upon request.

TABLE 5—WEIGHTED AVERAGE HOURLY COST OF STORING AND PRODUCING AML PROGRAM DOCUMENTATION UPON REQUEST, AND COMPLYING WITH REQUIREMENTS IN 31 CFR 1021.210(b)(2)(v) AND (vi)

General supervision Direct supervision Clerical work (recordkeeping) Weighted average % time Hourly cost % time Hourly cost % time Hourly cost hourly cost

1 $0.94 9 $4.48 90 $27.54 *$33.00 * $32.96 rounded to $33.00.

The total cost of the traditional annual PRA burden would be $3,297,273 as reflected in Table 6 below:

TABLE 6—TOTAL COST OF TRADITIONAL ANNUAL PRA BURDEN

Total burden Hourly cost Action in hours Total cost (Table 2) $ Source

A. Maintaining and updating the written AML program ...... 993 $48.00 Table 4 ...... $47,664 B. Storing the written AML program ...... * 83 33.00 Table 5 ...... 2,739 C. Producing the written AML program upon request ...... * 83 33.00 Table 5 ...... 2,739 D. Ongoing compliance with the requirements in 31 CFR 1021.210(b)(2)(v) 98,307 33.00 Table 6...... 3,244,131 and (vi).

Total Cost ...... 3,297,273 * 82.75 rounded to 83.

Part 3. Future Annual PRA Burden numbers and related regulations renewals associated with other BSA In the future, FinCEN intends to be renewed in this notice, FinCEN regulatory requirements. more granular in estimating the annual generally does not intend to estimate (a) FinCEN intends to include the PRA burden, by calculating the burden burden hours and cost applicable to following within a future annual PRA and cost attributed to certain, but not these two key elements in the future burden estimate for casinos: i. Any generic BSA-related education all, activities necessary to implement annual PRA burden. and training provided to all levels of the the four key elements of an AML The future annual PRA burden organization, and any training provided program.17 calculation will include the estimated to appropriate personnel on BSA issues The burden hours and cost of two of burden and cost to implement the other in excess of that required by their job- the key elements of an AML program two key elements of an AML program specific responsibilities under their (internal controls, and designation of a ((c) BSA training, and (d) independent audit) relating to the regulations and financial institution’s AML program. BSA compliance officer) are accounted ii. The burden and cost of any internal corresponding OMB control number for individually across all of the 42 or external independent review of being renewed in this notice. The future OMB control numbers FinCEN compliance with BSA-specific annual PRA burden calculation also will maintains for the various BSA obligations. regulatory requirements because those include the estimated burden and cost iii. The annual burden and cost of requirements necessitate that internal for a casino to (a) provide procedures to implementation of a compliance controls be put in place and that a BSA determine customer identification program that includes procedures to compliance officer be designated. For information, and the occurrence of determine customer identification that reason, for the OMB control suspicious activity transactions, and (b) information and the occurrence of use automated programs to aid in suspicious activity transactions. 17 Although FinCEN is providing information ensuring compliance, if the casino has iv. For casinos that have automated about burden and cost with respect to the four key automated data processing systems. data processing systems, the annual cost elements of an AML program, FinCEN wants to These additional two elements are emphasize that the four key elements of an AML and burden of implementation of a program are statutory requirements. The four key requirements of the casino AML compliance program that provides for elements of an AML program are: (a) Establishing program regulations, which are being the use of automated programs to aid in policies, procedures, and internal controls renewed in this notice. reasonably designed to ensure compliance with the ensuring compliance. BSA; (b) designating a person to ensure day to day To further clarify, below are lists of (b) FinCEN does not intend to include compliance with the AML program and the BSA; actions FinCEN intends to (1) include in the following as part of a future annual (c) providing education and training to appropriate a future annual PRA burden estimate PRA burden estimate: personnel concerning their responsibilities under the AML program; and (d) implementing an relating to the regulations and OMB i. The annual PRA burden and cost of independent review to monitor and maintain an control number renewed in this notice, the policies, procedures, and internal adequate AML program. and (2) cover in OMB control number controls established in the AML

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program to ensure compliance with the written AML program (Action B); 5 (3) How much time does the casino’s BSA; 18 minutes per casino, for producing a compliance department spend on ii. the designation of a person to copy of the AML program if requested creating AML related training content, ensure day to day compliance with the by regulatory examiners or law or is the training function conducted by financial institution’s AML program and enforcement (Action C); and 99 hours a team outside of the casino’s the BSA; 19 and per casino, for complying with the compliance department? iii. AML education and training requirements in 31 CFR (4) How much time is spent provided to personnel relating to their 1021.210(b)(2)(v) and (vi) (Action D). identifying the proper audience for job specific responsibilities.20 Estimated Number of Respondents: training? FinCEN does not have the necessary 993, as set out in Table 1. (5) How much time is spent tracking, information to provide a tentative Estimated Total Annual and reporting on, AML-related training? estimate for the PRA hourly burdens Recordkeeping Burden: The estimated Independent Review: and costs it intends to address in the total annual PRA burden is 99,466 (1) How much of the casino’s future. In addition, FinCEN does not hours, as set out in Table 2. compliance department’s time is spent have all the necessary information to Estimated Total Annual on responding to inquiries or correcting more accurately estimate the traditional Recordkeeping Cost: The estimated total deficiencies related to the independent annual PRA burden. For that reason, annual PRA cost is $3,297,273, as set review of the AML program? FinCEN is relying on estimates used in out in Table 6. (2) If the independent review is prior renewals of this OMB control conducted by an internal audit An Agency may not conduct or number and the applicable regulations. department, how much of the internal sponsor, and a person is not required to FinCEN further recognizes that after audit department’s time is spent respond to, a collection of information receiving public comments as a result of creating and implementing the required unless the collection of information this notice, future traditional annual testing plan for the independent review? displays a valid OMB control number. PRA hourly burden and cost estimates Updating and Maintaining a Written Records required to be retained under may vary significantly. FinCEN intends AML Program: the BSA must be retained for five years. to conduct more granular studies of the On average, how many times per year actions included in the proposed scope Part 4. Request for Comments does your casino update its AML program? of the annual PRA burden in the near (a) Specific request for comments on future, to arrive at more accurate The future annual PRA hourly burden the traditional annual PRA hourly and cost estimate of the recordkeeping estimates of net BSA hourly burden and burden and cost. cost.21 The data obtained in these necessary to comply with the AML FinCEN invites comments on any program requirements for casinos must studies also may result in a significant aspect of the traditional annual PRA variation of the estimated traditional take into consideration only the effort burden, as set out in Part 2 of this involved in obtaining those data annual PRA burden. notice. In particular, FinCEN seeks Estimated Recordkeeping Burden: The elements that are used exclusively for comments on the adequacy of: (i) average estimated annual PRA burden, complying with requirements under 31 FinCEN’s assumptions underlying its measured in hours per respondent, is: 1 CFR 1021.210. Given the complexity in burden estimate; (ii) the estimated hour per casino, for maintaining and determining what portion of the effort to number of hours required by each updating the AML program (Action A); include in the estimate, FinCEN seeks portion of the burden; and (iii) the 5 minutes per casino, for storing the comments from the public regarding any organizational roles of the casino questions we should consider posing in engaged in each portion of the burden, 18 As noted above, the burden hours and cost of future notices, in addition to the internal controls will be accounted for individually the roles’ estimated hourly specific questions for comment outlined across all of the 42 OMB control numbers FinCEN remuneration, and the estimated directly below. FinCEN welcomes any maintains for the various BSA regulatory proportion of time spent by each role on suggestions as to how to derive these requirements because those requirements the requirements. FinCEN encourages necessitate that internal controls be put in place. estimates by using publicly available 19 As noted above, the burden hours and cost of commenters to include any publicly financial information. a BSA compliance officer will be accounted for available sources for alternative (c) Specific questions for comment individually across all of the 42 OMB control estimates or methodologies. associated with implementing a numbers FinCEN maintains for the various BSA (b) Specific request for comments on regulatory requirements because those requirements compliance program that includes necessitate that a BSA compliance officer be the appropriate criteria, methodology, procedures to determine customer designated. and questionnaire required to obtain identification information and the 20 As noted above, generic BSA-related training information to more precisely estimate occurrence of suspicious activity provided to all levels of the organization will be the future annual PRA hourly burden included in future burden and cost estimates transactions, when required by BSA corresponding to the OMB control numbers being and cost. regulations. renewed in this notice. Job-specific training related FinCEN invites comments on the most to specific BSA requirements, will be covered in the appropriate and comprehensive means (1) Customer Identification Procedures OMB control numbers corresponding to those to question financial institutions about • On average, how long does it take specific BSA requirements. the annual hourly burden and cost. For 21 Net hourly burden and cost are the burden and your casino to establish procedures for cost a financial institution incurs to comply with example, as it relates to training, using all available information to requirements that are unique to the BSA, and that independent review, and maintaining determine and verify the name, address, do not support any other business purpose or and updating the AML program: social security number, and other regulatory obligation of the financial institution. Training: information, of a person? Burden for purposes of the PRA does not include • the time and financial resources needed to comply (1) How much time is spent on Does your casino have a review and with an information collection, if the time and creating and implementing the AML approval process involving senior resources are for things a business (or other person) training plan? management to evaluate the procedures does in the ordinary course of its activities if the used for determining and verifying agency demonstrates that the reporting activities (2) How much time is spent on needed to comply are usual and customary. 5 CFR delivering instructor led training or customer identification information? On 1320.3(b)(2). creating web- based training? average, how long does the review

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process take and how many approvals performance of the functions of the Please refer to ‘‘OMB Control No. 2900– are necessary? agency, including whether the 0059’’ in any correspondence. • How frequently does your casino information shall have practical utility; SUPPLEMENTARY INFORMATION: collect and verify the name, address, (ii) the accuracy of the agency’s estimate social security number, and other of the burden of the collection of Authority: 38 U.S.C. 1310 & 1315. information, of a person? information; (iii) ways to enhance the Title: Statement of Person Claiming to • On average how many new quality, utility, and clarity of the Have Stood in Relation to Parent. accounts does your casino open per information to be collected; (iv) ways to year? minimize the burden of the collection of OMB Control Number: 2900–0059. • How many accounts are for new information on respondents, including Type of Review: Reinstatement of a customers? through the use of automated collection previously approved collection. • How long does it take your casino techniques or other forms of information Abstract: 38 U.S.C. 1315 established to open a new account for an existing technology; and (v) estimates of capital Dependency Indemnity Compensation customer? or start-up costs and costs of operation, • How long does it take your casino to Parents (known as Parents’ DIC). maintenance, and purchase of services Parent’s DIC is a monthly benefit to conduct identity verification to provide information. procedures for a new personal or payable to the parent(s) of a deceased business account? Michael G. Mosier, Veteran. The payable monthly benefit is • Is the collection of customer Deputy Director, Financial Crimes based on the parent’s (parents’) annual identification information exclusively to Enforcement Network. income. Additional funds are payable to comply with customer identification [FR Doc. 2020–28255 Filed 12–21–20; 8:45 am] the parent(s) if they are in a patient in requirements, or is it also to comply BILLING CODE 4810–02–P a nursing home, blind, so nearly blind with other regulatory requirements or or significantly disabled as to need or for other business reasons? require the regular aid and attendance of another person. (2) Suspicious Activity Procedures DEPARTMENT OF VETERANS AFFAIRS 38 CFR 3.59 defines the term parent • On average, how long does it take as ‘‘. . . a natural mother or father your casino to establish procedures for [OMB Control No. 2900–0059] using all available information, (including the mother of an illegitimate including your automated systems and Agency Information Collection Activity child or the father of an illegitimate your surveillance system and Under OMB Review: Statement of child if the usual family relationship surveillance logs, to determine the Person Claiming To Have Stood in existed), mother or father through occurrence of any transactions or Relation of Parent (VA Form 21P–524) adoption, or a person who for a period of not less than 1 year stood in the patterns of transactions required to be AGENCY: Veterans Benefits relationship of a parent to a Veteran at reported as suspicious? Administration, Department of Veterans • any time before his or her entry into Does your casino have a review and Affairs. approval process involving senior active service.’’ ACTION: Notice. management to evaluate the procedures The information collected will be used for determining suspicious SUMMARY: In compliance with the used by VBA to evaluate a claimant’s activity? On average, how long does the Paperwork Reduction Act (PRA) of parental relationship to a deceased review process take and how many 1995, this notice announces that the Veteran when the claimant is not the approvals are necessary? Veterans Benefits Administration, Veteran’s natural mother or father or (d) Specific questions for comment Department of Veterans Affairs, will adopted mother or father. associated with implementation of a submit the collection of information Federal Register Notice with a 60-day compliance program that provides for abstracted below to the Office of comment period soliciting comments on the use of automated programs to aid in Management and Budget (OMB) for ensuring compliance, for casinos that review and comment. The PRA this collection of information was have automated data processing submission describes the nature of the published at 85 FR, 197 on October 9th, systems: 2020, page 64231. • information collection and its expected Does your casino use automated cost and burden and it includes the Affected Public: Individuals or data processing systems? actual data collection instrument. Households. • How does your casino use its automated data processing systems to DATES: Written comments and Estimated Annual Burden: 800. aid in ensuring compliance? recommendations for the proposed Estimated Average Burden per information collection should be sent • Does your casino have a review and Respondent: 2 Hours (120) minutes. approval process involving senior within 30 days of publication of this Frequency of Response: One time. management to evaluate the use of its notice to www.reginfo.gov/public/do/ automated data processing systems? On PRAMain. Find this particular Estimated Number of Respondents: average, how long does the review information collection by selecting 200. process take and how many approvals ‘‘Currently under 30-day Review—Open for Public Comments’’ or by search By direction of the Secretary. are necessary? Danny S. Green, (e) General request for comments. function. Refer to ‘‘OMB Control No. Comments submitted in response to 2900–0059. VA PRA Clearance Officer, Office of Quality, this notice will be summarized and/or FOR FURTHER INFORMATION CONTACT: Performance and Risk, Department of included in the request for OMB Danny S. Green, Enterprise Records Veterans Affairs. approval. All comments will become a Service (005R1B), Department of [FR Doc. 2020–28185 Filed 12–21–20; 8:45 am] matter of public record. Comments are Veterans Affairs, 810 Vermont Avenue BILLING CODE 8320–01–P invited on: (i) Whether the collection of NW, Washington, DC 20420, (202) 421– information is necessary for the proper 1354 or email [email protected].

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DEPARTMENT OF VETERANS ways to minimize the burden of the closely represent the overall population. AFFAIRS collection of information on Weighting models will rely on respondents, including through the use beneficiary age and gender. [OMB Control No. 2900–NEW] of automated collection techniques or Affected Public: Individuals. Estimated Annual Burden: 180 hours. Agency Information Collection the use of other forms of information technology. Estimated Average Burden per Activity: Survey of Individuals Using Respondent: 10 minutes. Their Entitlement to Educational Authority: 44 U.S.C. 3501–21. Title: Survey of Individuals Using Frequency of Response: One time. Assistance Under the Educational Their Entitlement To Educational Estimated Number of Respondents: Assistance Programs Administered by Assistance Under The Educational 1,080. the Secretary of Veterans Affairs Assistance Programs Administered By By direction of the Secretary. AGENCY: Veterans Benefits The Secretary of Veterans Affairs. Danny S. Green, Administration, Department of Veterans OMB Control Number: 2900–NEW. VA PRA Clearance Officer, Office of Quality, Affairs. Type of Review: New data collection. Performance and Risk, Department of Abstract: The Educational Assistance ACTION: Notice. Veterans Affairs. Program Feedback Survey is designed to [FR Doc. 2020–28183 Filed 12–21–20; 8:45 am] measure experience of beneficiaries of SUMMARY: Veterans Benefits BILLING CODE 8320–01–P Administration, Department of Veterans educational assistance programs Affairs, Department of Veterans Affairs administered by the Veterans Affairs (VA), is announcing an opportunity for (VA), including under chapters 30, 32, DEPARTMENT OF VETERANS public comment on the proposed new 33, and 35 of title 38 United States AFFAIRS collection of certain information by the Code. The information will help the VA agency. Under the Paperwork Reduction improve programs and better serve Solicitation of Nomination for Act (PRA) of 1995, Federal agencies are Veterans interested in educational Appointment to the Veterans’ Advisory required to publish notice in the assistance. Educational Assistance Committee on Rehabilitation Federal Register concerning each new Program feedback data will be collected ACTION: proposed collection of information, and using an online transactional survey or Notice. paper disseminated via an invitation allow 60 days for public comment in SUMMARY: The Department of Veterans email or mailed letter sent to selected response to the notice. Affairs (VA), Veterans Benefits beneficiaries. The survey questionnaire DATES: Written comments and Administration (VBA), is seeking includes 52 questions, though in recommendations on the proposed nominations of qualified candidates to actuality due to branching depending on collection of information should be responses to each question respondents be considered for appointment as received on or before February 22, 2021. will complete anywhere from 8–49 members of the Veterans’ Advisory ADDRESSES: Submit written comments questions (8 if respondents passed their Committee on Rehabilitation on the collection of information through benefit to dependents; 39–49 questions (hereinafter referred to as ‘‘the Federal Docket Management System for all other respondents). The survey Committee’’). (FDMS) at www.Regulations.gov or to contains general rating-scale questions DATES: Nominations for membership on Nancy J. Kessinger, Veterans, Veterans (e.g., a scale of 1–5 from Very the Committee must be received by Benefits Administration (20M33), dissatisfied to Very satisfied; or Not at January 14, 2021, no later than 4:00 Department of Veterans Affairs, 810 all effective to Extremely effective) to p.m., eastern standard time. Packages Vermont Avenue NW, Washington, DC assess satisfaction with educational received after this time will not be 20420 or email to nancy.kessinger@ assistance programs, resources, training considered for the current membership va.gov. Please refer to ‘‘OMB Control as well as questions assessing cycle. No. 2900–NEW’’ in any correspondence. education/training outcomes ADDRESSES: All nomination packages During the comment period, comments (completion of program, current income should be emailed to the Designated may be viewed online through FDMS. level) and has been approved by the Federal Officer, Latrese Arnold at FOR FURTHER INFORMATION CONTACT: Education Service leadership. These [email protected]. Danny S. Green at (202) 421–1354. questions have been mapped to the SUPPLEMENTARY INFORMATION: In SUPPLEMENTARY INFORMATION: Under the Public Law 114–315 (December 15, carrying out the duties set forth, the PRA of 1995, Federal agencies must 2016) section 414. After the survey has Committee responsibilities include, but obtain approval from the Office of been distributed, recipients will have are not limited to, submitting to the Management and Budget (OMB) for each two weeks to complete the survey. Secretary an annual report on the collection of information they conduct Invitees will receive a reminder email or rehabilitation programs and activities of or sponsor. This request for comment is mailed letter after one week. The sample the VA. being made pursuant to Section will be distributed across four Membership Criteria: VBA is 3506(c)(2)(A) of the PRA. Education Benefit Programs: Post-9/11 requesting nominations for upcoming With respect to the following GI Bill (Chapter 33), Montgomery GI vacancies on the Committee. Members collection of information, VBA invites Bill—Active Duty (Chapter 30), Veterans of the Committee are appointed by the comments on: (1) Whether the proposed Education Assistance Program (VEAP; Secretary from the general public, collection of information is necessary Chapter 32), and Survivors’ and including but not limited to: for the proper performance of VBA’s Dependents’ Educational Assistance (1) Veterans with service-connected functions, including whether the (DEA; Chapter 35). The overall sample disabilities; information will have practical utility; size is determined so that the reliability (2) Persons who have distinguished (2) the accuracy of VBA’s estimate of the of survey estimate is 3% Margin of Error themselves in the public and private burden of the proposed collection of at a 95% Confidence Level. Once data sectors in the fields of rehabilitation information; (3) ways to enhance the collection is completed, the participant medicine, vocational guidance, quality, utility, and clarity of the responses in the survey will be vocational rehabilitation, and information to be collected; and (4) weighted so that the samples more employment and training programs

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(3) Ex officio members of the invited to serve a three-year term. The (3) the nominee’s curriculum vitae; Committee shall include one Secretary may reappoint a member for (4) a summary of the nominee’s representative from the Veterans Health an additional term of service. In experience and qualifications relative to Administration and one from the accordance with Federal Travel the membership considerations Veterans Benefits Administration; one Regulation, Committee members will described above; and representative each from the receive travel expenses and a per diem Rehabilitation Services Administration allowance for any travel made in (5) a statement confirming that he/she of the Department of Education, and the association with duties as members of is not a federally-registered lobbyist. National Institute for Handicapped the Committee and within federal travel The Department makes every effort to Research of the Department of guidelines. Self- nominations are ensure that the membership of VA Education; and one representative of the acceptable. Any letters of nomination Federal advisory committees is balanced Assistant Secretary for Veterans’ from organizations or other individuals in terms of points of view represented Employment and Training of the should accompany the package when it and the committee’s function. Department of Labor. is submitted. Non-Veterans are also Appointments to this Committee shall Authority: The Committee was eligible for nomination. established pursuant to 38 U.S.C. 3121, Requirements for Nomination be made without discrimination based to advise the Secretary of VA with submission: Nominations should be on a person’s race, color, religion, sex, respect to the administration of typed (one nomination per nominator). sexual orientation, gender identity, Veterans’ rehabilitation programs. Nomination package should include: national origin, age, disability, or Nominations of qualified candidates are (1) A letter of nomination that clearly genetic information. Nominations must being sought to fill upcoming vacancies states the name and affiliation of the state that the nominee appears to have on the Committee. nominee, the basis for the nomination no conflict of interest that would To the extent possible, the Secretary (i.e., specific attributes which qualify preclude membership. An ethics review seeks members who have diverse the nominee for service in this is conducted for each selected nominee. professional and personal qualifications. capacity), and a statement from the Dated: December 17, 2020. We ask that nominations include nominee indicating that he/she is a U.S. information of this type so that VA can citizen and is willingness to serve as a LaTonya L. Small, ensure a balanced Committee member of the Committee; Federal Advisory Committee Management membership. (2) the nominee’s contact information, Officer. Individuals appointed to the including name, mailing address, [FR Doc. 2020–28254 Filed 12–21–20; 8:45 am] Committee by the Secretary shall be telephone numbers, and email address; BILLING CODE P

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Part II

Department of the Treasury

Office of the Comptroller of the Currency 12 CFR Parts 2, 5, 7, et al. Activities and Operations of National Banks and Federal Savings Associations; Final Rule

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DEPARTMENT OF THE TREASURY economic growth for consumers, the organization of part 7.5 As a businesses and communities. companion to the proposed rule, the Office of the Comptroller of the These reviews are in addition to the OCC also issued an Advance Notice of Currency OCC’s decennial review of its Proposed Rulemaking (ANPR) inviting regulations as required by the Economic ideas for revisions on the OCC’s rules on 12 CFR Parts 4, 5, 7, 145, and 160 Growth and Regulatory Paperwork electronic banking activities located at Reduction Act (EGRPRA).2 These subpart E of 12 CFR part 7 and 12 CFR [Docket ID OCC–2020–0003] reviews also consider, where part 155.6 appropriate, opportunities to integrate The OCC also proposed more general RIN 1557–AE74 rules that apply to national banks with changes throughout part 7 including Activities and Operations of National similar rules that apply to Federal removing outdated or superfluous Banks and Federal Savings savings associations in light of the regulations; consolidating related Associations transfer to the OCC of all functions of regulations into one section; and making the former Office of Thrift Supervision various technical changes throughout AGENCY: Office of the Comptroller of the (OTS) relating to Federal savings part 7. In addition, the OCC proposed to Currency, Treasury. association by Title III of the Dodd- integrate a number of rules in part 7 to ACTION: Final rule. Frank Wall Street Reform and Consumer include Federal savings associations. Protection Act (Dodd-Frank Act).3 The OCC notes that pursuant to SUMMARY: The Office of the Comptroller As part of this process, the Office of section 4(b) of the International Banking of the Currency is issuing a final rule to the Comptroller of the Currency (OCC) Act,7 many of the provisions in part 7 revise and reorganize its regulations published a notice of proposed apply to Federal branches and agencies. relating to the activities and operations rulemaking (proposal or proposed rule) This act provides that, subject to certain of national banks and Federal savings on July 7, 2020 to revise and reorganize exceptions, the operations of a foreign associations and to amend its rules subparts A through D of 12 CFR part 7, bank at a Federal branch or agency shall 4 relating Federal savings association Activities and Operations. The OCC be conducted with the same rights and corporate governance. This rule clarifies proposed to update part 7 to address privileges as a national bank at the same and codifies recent OCC interpretations, developing issues and industry location and shall be subject to all the integrates certain regulations for practices, to clarify OCC interpretive same duties, restrictions, penalties, national banks and Federal savings positions, and to integrate certain liabilities, conditions, and limitations associations, and updates or eliminates national bank rules by adding Federal that would apply under the National outdated regulatory requirements that savings associations. As examples, the Bank Act to a national bank doing proposed revisions to subpart A no longer reflect the modern financial business at the same location.8 This included new regulations covering tax system. Additionally, this rule includes final rule amends some of the equity finance transactions, derivatives related technical changes throughout provisions in part 7 to include Federal activities, and payment system these and other OCC regulations. branches and agencies for ease of memberships. The proposed revisions to DATES: The rule is effective April 1, reference. However, the lack of subpart B addressed corporate 2021. inclusion of Federal branches and governance issues, such as expanding agencies in a particular provision does FOR FURTHER INFORMATION CONTACT: Beth the ability of national banks to choose not necessarily indicate that the Kirby, Assistant Director, Valerie Song, corporate governance provisions under provisions is inapplicable to Federal Assistant Director, Heidi M. Thomas, State or other law, clarifying permissible branches and agencies. Special Counsel, or Chris Rafferty, anti-takeover provisions, and adding Attorney, Chief Counsel’s Office, (202) provisions relating to capital stock- The OCC received 16 comment letters 649–5490, Office of the Comptroller of related activities of national banks. The on the proposal from banking the Currency, 400 7th Street SW, OCC also proposed to update and organizations and other interested Washington, DC 20219. integrate rules relating to bank hours parties. These comments and the OCC’s response are discussed in the next SUPPLEMENTARY INFORMATION: and closings in subpart C and to update rules relating to loan production and section of this SUPPLEMENTARY I. Background deposit production offices and remote INFORMATION. As described in more detail below, the OCC is adopting the The Office of the Comptroller of the service units in subpart D and to move proposal as a final rule with Currency (OCC) periodically reviews its these sections to subpart A to improve accompanying modifications where regulations to eliminate outdated or noted. The final rule becomes effective otherwise unnecessary regulatory 2 Public Law 104–208 (1996), codified at 12 U.S.C. 3311(b). Section 2222 of EGRPRA requires on April 1, 2021. provisions and, where possible, to that, at least once every 10 years, the OCC along clarify or revise requirements imposed with the other Federal banking agencies and the 5 Federal Financial Institutions Examination Council The OCC has separately issued a final rule that on national banks and Federal savings amends 12 CFR 7.4001. See 84 FR 33530 (June 2, associations.1 The elimination of (FFIEC) conduct a review of their regulations to identify outdated or otherwise unnecessary 2020) (Permissible Interest on Loans That Are Sold, unnecessary regulatory impediments regulatory requirements imposed on insured Assigned, or Otherwise Transferred). The OCC also together with efforts to revise depository institutions. Specifically, EGRPRA issued an interim final rule that amends 12 CFR regulations to reflect changes in the requires the agencies to categorize and publish their 7.1001 and 7.1003, which this rulemaking finalizes. regulations for comment, eliminate unnecessary See 85 FR 31943 (May 28, 2020) (Director, financial industry help to promote regulations to the extent that such action is Shareholder, and Member Meetings). Further, the appropriate, and submit a report to Congress OCC has issued a final rule that adds a new 1 For example, the OCC recently issued a final summarizing their review. The agencies completed § 7.1031, National Banks and Federal Savings rule relating to policies and procedures for their second EGRPRA review on March 2017 and Associations as Lenders). See 85 FR 68742 (October corporate activities and transactions involving published their report in the Federal Register. 82 30, 2020). national banks and Federal savings associations, 12 FR 15900 (March 30, 2017). 6 See 85 FR 40827 (July 7, 2020) (National Bank CFR part 5, that updates and clarifies these policies 3 Public Law 111–203, 124 Stat. 1376 (2010) and Federal Savings Association Digital Activities). and procedures and eliminate unnecessary (transferring to the OCC all functions of the former 7 12 U.S.C. 3101 et seq. (Pub. L. 95–369). requirements consistent with safety and soundness. OTS relating to Federal savings associations). 8 12 U.S.C. 3102(b) (Pub. L. 95–369). See also 12 See 85 FR 80404 (Dec. 11, 2020). 4 85 FR 40794 (July 7, 2020). CFR 28.13.

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II. Description of the Proposed Rule list of electronic activities that are permissible finder activities for national incidental to the business of banking. banks in one rule. Subpart A—National Banks and Federal The proposed rule inadvertently The OCC received one comment letter Savings Association Powers removed this list and the final rule on § 7.1002. The commenter Activities That Are Part of, or Incidental restores it as § 7.5001, with conforming recommended revising the list of to, the Business of Banking (New changes to the cross-reference to new examples to reflect how finder authority § 7.1000) § 7.1000. The OCC notes that it is is exercised in the modern financial Section 7.5001 identifies the criteria reviewing this list in the broader context system. The commenter specifically the OCC uses to determine whether an of potential changes to all of subpart E suggested that the OCC consider electronic activity is authorized for pursuant to the ANPR on National Bank consolidating the finder authority in national banks as part of, or incidental and Federal Savings Association Digital §§ 7.1002 and 7.5002. The OCC to, the business of banking under 12 Activities and may make further disagrees with this recommendation. U.S.C. 24(Seventh) or other statutory changes in the future.10 The cross-reference sufficiently clarifies authority. While this section details that additional finder activities are National Bank and Federal Savings listed in that section. Further, the OCC’s those criteria in the context of electronic Association Acting as Finder (§ 7.1002) activities, the OCC uses these same ANPR on National Bank and Federal criteria to determine whether any The OCC proposed a technical change Savings Association Digital Activities activity is part of, or incidental to, the to its regulation at § 7.1002 relating to requested comment on the electronic business of banking. To confirm the when a national bank acts as a finder finder activities list in 12 CFR 13 broader applicability of the criteria and invited comment on the inclusion 7.5002(a)(1). Through that rulemaking listed in § 7.5001, the OCC proposed to of Federal savings association finder process, the OCC will consider further remove the word ‘‘electronic’’ from this activities in part 7. For the reasons revisions related to electronic finder section and move § 7.5001 to subpart A discussed below, the OCC is adopting activities. A cross-reference will capture of part 7 as new § 7.1000. As part of this this technical change and also is these possible revisions without again move, the proposal redesignated current amending § 7.1002 to include Federal having to revise § 7.1002. The OCC also § 7.1000 as § 7.1024. These changes savings association finder activities. may consider consolidating the finder better organize OCC rules and clarify The OCC has long permitted a authority in §§ 7.1002 and 7.5002 that the criteria of this new § 7.1000 national bank to act as a finder to bring during the subpart E revision process. apply to any potential national bank together buyers and sellers of financial The commenter further suggested that activity and not just those that are and nonfinancial products and the final rule add to the list in electronic in nature. Further, the OCC services.11 The OCC’s regulations § 7.1002(b) the making or receiving of a believes that new § 7.1000 belongs at the include two separate rules relating to referral to or from a third party for a fee, beginning of part 7 because it provides permissible national bank finder and more generally suggested that the the framework for all national bank activities. Section 7.1002, which rule permit banks to accept reasonable powers that follow in subpart A. codifies OCC interpretive letters, finder fees. The OCC notes that § 7.1002 The OCC also proposed a technical provides that finder activities are part of contemplates making referrals for a fee, change to redesignated § 7.1000(c)(1). the business of banking.12 This section and the list of examples in § 7.1002 The current rule provides a four factor also describes permissible finder includes ‘‘[a]rranging for third-party test to determine whether an activity is activities; provides an illustrative, non- providers to offer reduced rates to those part of the business of banking. exclusive list of permissible finder customers referred by the bank.’’ 14 The However, this four-factor test is not activities; clarifies that a national bank’s OCC also believes that continuing to necessary for activities that are finder authority does not allow it to limit fees to those permitted by Federal specifically included in 12 U.S.C. engage in brokerage activities that have law is appropriate. Therefore, the final 24(Seventh) or other statutory authority not been found to be permissible for rule does not add a reasonableness because they are by express statutory national banks; and authorizes a requirement. However, the OCC notes language within the business of national bank to advertise and accept that the reasonableness of fees received banking. Therefore, the proposed rule fees for finder services unless otherwise may raise other concerns and that added language to clarify that this four- prohibited by Federal law. Section § 7.4002(b) provides considerations for factor test applies to activities not 7.5002 provides that a national bank national banks in setting non-interest specifically included in 12 U.S.C. generally may perform, provide, or charges and fees. 24(Seventh) or other statutory authority. deliver through electronic means and The commenter’s recommendation to This clarification reflects the OCC’s facilities any activity, function, product, add receiving a referral for a fee also long-standing use of the four-factor test or service that is otherwise permissible. involves adding a bank receiving and to determine whether an activity not Section 7.5002(a)(1) clarifies that a paying for finder services from a third expressly included in a statute is within national bank may act as an electronic party. Longstanding OCC interpretations the business of banking.9 finder and includes a list of permissible confirm that banks may pay for finder The OCC received one comment that electronic finder activities. services, subject to fact-specific supported new § 7.1000. Therefore, the The OCC proposed amending its considerations.15 However, § 7.1002 OCC is adopting § 7.1000 as proposed. regulations by adding a new covers banks acting as finders, and the The final rule also corrects a technical § 7.1002(b)(8) that would cross-reference proposal did not address the authority error in the proposed rule. Current the permissible electronic finder § 7.5001(d)(3) contains an illustrative activities listed in § 7.5002(a)(1). This 13 See 85 FR 40827, at 40830. 14 change would reference all examples of 12 CFR 7.1002(b)(3). 9 The Supreme Court has held that the business 15 See, e.g., OCC Interpretive Letter No. 504 (May of banking is not limited to the enumerated powers 18, 1990) (describing how ‘‘finder’s fees [paid by a 10 listed in 12 U.S.C. 24(Seventh) but encompasses See 85 FR 40827. bank] must be high enough to be attractive to more broadly activities that are part of or incidental 11 See, e.g., OCC Interpretive Letter No. 607 (Aug. potential sources of referrals, yet not so high as to to the business of banking. NationsBank of N.C., 24, 1992). be financially detrimental to the Bank or create an N.A. v. Variable Annuity Life Ins. Co., 513 U.S. 251, 12 See, e.g., OCC Interpretive Letter No. 824 (Feb. appearance of profit sharing, which could lead to 258–60 (1995). 27, 1998). the inference of a joint venture or partnership’’).

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of banks to be finder clients. a Federal savings association may recommendation to incorporate Federal Accordingly, the OCC does not believe engage in finder activities only to the savings associations in § 7.1002. that the final rule should add provisions extent that the activities are incidental The OCC agrees that the authority of on banks receiving and paying for finder to Federal savings association powers Federal savings associations to act as services. authorized under the Home Owners’ finders should be codified in the OCC’s The same commenter recommended Loan Act (HOLA) (12 U.S.C. 1461 et regulations. Therefore, the final rule the OCC confirm that payment or 19 seq). The former OTS determined that, clarifies that Federal savings collection of finder fees as a share of if certain factors are met, a Federal revenue is permitted. Section 7.1002(d) associations may act as finders to the savings association may collect fees for extent those activities are incidental to permits finder fees that do not violate referring customers to third parties 20 Federal law and does not expressly their expressly authorized powers under and may provide services and products HOLA. In determining whether an prohibit specific fee arrangements. The to customers indirectly through a third- activity is incidental, the OCC considers OCC has permitted collection and party discount program 21 as activities whether (1) the activity facilitates or is payment of finder fees as a share of incidental to their statutorily similar to the conduct of an activity that revenue in certain contexts.16 However, enumerated powers. The OCC also has Congress expressly authorized, (2) the revenue sharing arrangements may raise recognized Federal savings association activity relates to Federal savings supervisory and legal concerns, finder authority in its Retail Nondeposit associations’ intended role as financial including whether they result in a joint Investment Products Booklet of the intermediaries, (3) the activity is venture and unlimited liability, which Comptroller’s Handbook.22 necessary to enable the Federal savings national banks do not have the power to As noted above, the OCC did not assume.17 Rather than codify the association to remain competitive and propose amendments to § 7.1002 related relevant in the modern economy, and permissibility of any specific fee to Federal savings associations but (4) the activity is consistent with the arrangement, the OCC believes that invited comment on whether it should purpose and function Congress continuing to permit banks to accept add a separate provision to § 7.1002 to envisioned for Federal savings fees except as otherwise prohibited by set forth Federal savings association associations.23 Each factor need not Federal law is appropriate. As described finder authority. In the preamble to the support the permissibility of an activity, above, the final rule does not add proposed rule, the OCC offered options and the relative weights of each factor provisions on banks paying finder to integrate Federal savings associations may vary.24 services, whether those fees are based into § 7.1002. It described a provision on revenue or not. for a Federal savings association to The source of finder authority for The commenter further recommended engage in finder activities to the extent Federal savings associations is more that the final rule codify prior OCC that those activities are incidental to limited and fact-specific than for interpretations finding that the sharing Federal savings association powers national banks. The former OTS’ of revenue or profit alone in a referral expressly authorized under the HOLA. approval of referral fees dealt with relationship would not constitute a joint The OCC also suggested a list of Federal referrals to registered investment venture under State law if the parties savings association finder activities that advisors and considered how those express an intent not to create a joint the former OTS or the OCC have services related to a Federal savings venture. The proposal did not address determined are permissible, such as association’s expressly authorized joint ventures, and we are not inclined collecting fees for referring customers to powers.25 Similarly, the former OTS’s to address it in this rulemaking. approval of the third-party discount The commenter also recommended third parties and providing services and program considered how the product that the OCC confirm that a bank is not products indirectly to customers offerings would facilitate expressly required to disclose finder fees paid or through a third-party discount program. The OCC specifically requested authorized activities of Federal savings collected. The proposal did not address 26 fee disclosure, and the OCC is not comment on what other Federal savings associations. The final rule includes inclined to adopt this recommendation. association finder activities the OCC both referrals and third-party discount We also note that OCC precedent could add to this list. programs as illustrative examples of the requires disclosure of finder fees in No commenters directly responded to types of finder services that a Federal certain contexts and inadequate the request for input on Federal savings savings association may provide. disclosure may raise supervisory and association finder activities. However, However, certain referral and discount legal concerns.18 one commenter recommended that the programs may not be within the While finder activities are part of the rule include new examples of how incidental powers of Federal savings business of banking for a national bank, national banks and Federal savings associations. Therefore, the final rule associations have exercised finder clarifies that the examples are 16 See, e.g., id.; OCC Interpretive Letter No. 824. authority. Because the current rule is permissible if they are incidental to a 17 See, e.g., OCC Interpretive Letter No. 504 limited to national banks, the OCC Federal savings association’s express (‘‘National banks are not permitted to be members interprets this comment as a powers. It also states that the OCC may of general partnerships or, by extension, joint ventures.’’); Merchants’ Nat. Bank of Cincinnati v. Wehrmann, 202 U.S. 295, 301 (1906) (describing the 19 The OCC and the predecessor agencies 23 See OTS Op. Ch. Couns. (May 5, 2000). All assumption of unlimited personal liability as previously responsible for the supervision of precedents (orders, resolutions, determinations, ‘‘precisely what a national bank has no authority to Federal savings associations ‘‘have long recognized agreements, regulations, interpretive rules, do’’); OCC Interpretive Letter No. 1022 (Feb. 15, that federal savings associations possess ‘incidental’ interpretations, guidelines, procedures, and other 2005). powers, i.e., powers that are incident to the express advisory materials) made, prescribed, or allowed to 18 See, e.g., OCC Interpretive Letter No. 850 (Jan. powers of federal savings associations as set forth become effective by the former OTS or its Director 27, 1999) (citing OCC precedent on disclosure of in the Home Owners’ Loan Act.’’ OTS Op. Acting that apply to Federal savings associations remain finder fees in connection with the marketing of trust Ch. Couns. at 3 (Mar. 25, 1994). effective until the OCC modifies, terminates, sets services); OCC Corporate Decision No. 2002–11 20 OTS Op. Ch. Couns. (May 5, 2000). aside, or supersedes those precedents. 12 U.S.C. (June 28, 2002) (describing potential conflicts of 21 OTS Op. Ch. Couns. (Aug. 5, 2008). 5414(b). interest from receiving finder fees and the OCC’s 22 OCC, Comptroller’s Handbook: Retail 24 See OTS Op. Ch. Couns. (May 5, 2000). expectation that the bank’s ‘‘interest in promoting Nondeposit Investment Products Booklet at 9 (Jan. 25 See id. specific’’ products and services be disclosed). 2015). 26 OTS Op. Ch. Couns. (Aug. 5, 2008).

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determine that other activities are bank or its operating subsidiary. This subsidiary’s business. Otherwise, the permissible. paragraph defines a third party to commenter stated, the proposed rule Consistent with the current rule’s include a person who satisfies the will result in competitive inequality and treatment of national banks, the final requirements of § 7.1012(c)(2) or one thus be detrimental to the dual banking rule permits Federal savings who customarily delivers loan proceeds system. The OCC disagrees with this associations to advertise the availability directly from bank funds under commenter and does not believe it of and accept a fee for finder services, accepted industry practice, such as an needs to alter proposed paragraph (c) to unless otherwise prohibited by Federal attorney or escrow agent at a real estate be consistent with OCC precedent. The law, and does not enable a Federal closing. provision in the proposed regulation savings association to engage in The OCC proposed amending § 7.1003 that the operating subsidiary ‘‘provides brokerage activities that have not been to incorporate an OCC interpretation similar services on substantially similar found to be permissible for Federal that further clarifies when the OCC terms and conditions to customers of savings associations. considers money to be lent at a location unaffiliated entities including As a result of adding Federal savings other than the main office. Specifically, unaffiliated banks’’ should be associations to § 7.1002, the final rule proposed paragraph (c) provided that a understood to include the requirement revises paragraph (a) to include the national bank operating subsidiary may that the bank act substantially similarly general description of finder activity distribute loan proceeds from its own in soliciting business from customers currently included in paragraph (b) and funds or bank funds directly to the and noncustomers. Therefore, the the statement of authority for both borrower in person at offices the proposed change adequately reflects national bank and Federal savings operating subsidiary established OCC precedent. association finder activity. Paragraph without violating 12 U.S.C. 36, 12 The second commenter supported the (b)(1) includes the nonexclusive list of U.S.C. 81, and 12 CFR 5.30 if the proposed changes but suggested that permissible finder activities for national operating subsidiary provides similar § 7.1003 be broadened to apply equally banks. Paragraph (b)(2) includes the services on substantially similar terms to facilities of either the national bank nonexclusive list of permissible finder and conditions to customers of or its operating subsidiary. The OCC activities for Federal savings unaffiliated entities, including believes that even if a facility of the associations. Paragraphs (c) and (d) unaffiliated banks.27 Based on Supreme national bank itself attempted to 28 remain unchanged except for the Court precedent, OCC interpretations provide services to both customers and addition of Federal savings associations. have recognized that a facility must noncustomers on substantially similar Money Lent by a National Bank at provide a convenience to bank terms and conditions, the public would Banking Offices or at Facilities Other customers that gives the bank a still perceive it as favoring bank Than Banking Offices (§ 7.1003) competitive advantage in obtaining customers and would associate it with customers for the facility to be Twelve U.S.C. 81 provides that a the bank, thus giving it a competitive considered a branch for purposes of 12 advantage in attracting bank customers. national bank must transact business in 29 U.S.C. 36 and 12 CFR 5.30. The OCC Thus, the OCC declines to extend this the place specified in its organization has found that a facility where members certificate and in any branches provision to include national bank of the public, customers, and facilities. established or maintained in accordance noncustomers alike receive substantially with 12 U.S.C. 36. The OCC interprets For the reasons discussed above, the similar services on substantially similar OCC is adopting § 7.1003 as proposed, 12 U.S.C. 81 to mean that money is terms is not a facility created to attract deemed to be lent at a bank’s main with a clarifying change to the section bank customers and thus the heading, clarifying changes throughout office unless there is a sufficient nexus establishment of this type of facility tying the transaction to another location, to reference ‘‘national banks’’ instead of offers no competitive advantage to the ‘‘banks,’’ and the removal of an in which case that location must be 30 national bank. Proposed paragraph (c) unnecessary comma in paragraph (c). licensed as a branch office. reflects this OCC precedent. Twelve U.S.C. 36 and 12 CFR 5.30 The OCC received two comments on Establishment of a Loan Production define ‘‘branch’’ as a place of business this proposed change. One commenter Office by a National Bank (§ 7.1004) established by the national bank where stated that if the distribution of loan ‘‘deposits are received, or checks paid, Credit Decisions at Other Than Banking proceeds by national bank operating Offices of a National Bank (§ 7.1005) or money lent.’’ Section 7.1003 provides subsidiaries does not constitute lending that for purposes of what constitutes a money then, consistent with OCC Section 7.1004 provides that a branch within the meaning of 12 U.S.C. precedent, the rule should also require national bank may use the services of 36 and 12 CFR 5.30, ‘‘money’’ is deemed that the operating subsidiary actively persons not employed by the bank for to be ‘‘lent’’ only at the place, if any, solicit and service noncustomers and originating loans. It also provides that where the borrower in-person receives that providing services to noncustomers an employee or agent of a national bank loan proceeds directly from bank funds comprise the predominate share of the or its subsidiary may originate a loan at either (1) from the lending bank or its a site other than the main office or a operating subsidiary or (2) at a facility 27 See Interpretive Letter No. 814 (Nov. 3, 1997). branch office of the bank without that is established by the lending bank 28 In First National Bank in Plant City v. violating the branching and place of or its operating subsidiary. Section Dickinson, the Supreme Court explained that business requirements of 12 U.S.C. 36 7.1003(b) further provides that a because the purpose of 12 U.S.C. 36 is to maintain and 12 U.S.C. 81 if the loan is approved competitive equality, it is relevant in construing the borrower may receive loan proceeds term ‘‘branch’’ to consider whether the facility gives and made at the main office or a branch directly from bank funds in person at a the bank an advantage in its competition for office of the bank or at an office of an place that is not the bank’s main office customers. First National Bank in Plant City v. operating subsidiary located on the and is not licensed as a branch without Dickinson, 396 U.S. 122, 136–137 (1969). premises of, or contiguous to, the main violating 12 U.S.C. 36, 12 U.S.C. 81, and 29 See OCC Interpretive Letter No. 635 (July 23, office or branch office of the bank. 1993). See also 61 FR 60342, at 60347 (Nov. 27, 12 CFR 5.30, provided that a third party 1996). Section 7.1005 provides that a national is used to deliver the funds and the 30 See OCC Interpretive Letter No. 814 (Nov. 3, bank and its operating subsidiary may place is not established by the lending 1997). make a credit decision regarding a loan

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application at a site other than the main at a loan production office. The OCC proposal incorporated OCC office or a branch office of the bank proposed to redesignate former interpretations of what constitutes a provided that ‘‘money’’ is not ‘‘lent’’ at paragraph (a) as paragraph (b) and branch and a non-branch office and those other sites within the meaning of amend it to reference loan production does not raise new preemption issues. § 7.1003. activities instead of originating loans. Lastly, this commenter stated that the Section 7.1004 is not intended to One commenter opposed combining proposed rule enables banks to avoid prescribe where a bank must perform §§ 7.1004 and 7.1005, stating this would Community Reinvestment Act (CRA) certain activities but rather to help allow national bank LPOs to conduct obligations associated with licensed avoid violations of the branching laws both loan origination and loan approval branches by expanding what can occur by defining a ‘‘safe harbor’’ for loan at an office accessible to the public at non-branch national bank offices. origination activities that will not without causing that LPO to be a branch However, the new CRA regulation constitute branching.31 Section 7.1005, because under the rule it would not be provides that ‘‘[a] bank must delineate in turn, which addresses credit engaged in lending money. This an assessment area encompassing each decisions made at a site other than commenter contends that OCC location where the bank maintains a offices of the bank, is based on OCC interpretive rulings and regulations main office, a branch, or a non-branch precedent finding that it is permissible have consistently maintained that deposit-taking facility that is not an for loans originated at an LPO to be money is lent at an office that conducts ATM ....’’36 Thus, national banks approved at separate back office both loan origination and loan approval cannot use non-branch locations to facilities not located on the premises of, because the combination or aggregation or contiguous to, a main or branch office of these activities constitutes the avoid complying with the CRA. of the bank.32 When the OCC adopted substantial equivalent of lending money For the reasons discussed above, the § 7.1005, it noted that it was retaining for purposes of the definition of branch OCC adopts § 7.1004 as proposed. § 7.1004 despite the potential tension (‘‘aggregation theory’’). The commenter Loan Agreement Providing for a between the two sections because therefore claims that although the OCC National Bank Share in Profits, Income, § 7.1004 is a judicially recognized safe stated that proposed § 7.1004 was not or Earnings or for Stock Warrants harbor and that it did not view a lending intended to ‘‘affect the scope of (§ 7.1006) related activity that falls outside the activities that are permissible for a scope of § 7.1004, as with § 7.1005, as national bank to perform at a non- Section 7.1006 permits a national necessarily violating branching branch location,’’ this revision does bank to take as consideration for a loan: statutes.33 expand the scope of permissible LPO (1) A share in the profit, income, or The OCC proposed amending § 7.1004 activities and thereby narrows the scope earnings from a business enterprise of a to describe the permitted activities as of activities subject to branching borrower or (2) a stock warrant issued ‘‘loan production activities,’’ and to restrictions. by the business enterprise of a borrower remove § 7.1005 to simplify and The OCC disagrees with this provided the bank does not exercise the streamline its rules. As proposed, commenter. The proposed revisions to warrant. This arrangement is known as paragraph (a) of § 7.1004 provided that §§ 7.1004 and 7.1005 are consistent with an ‘‘equity kicker.’’ Section 7.1006 a national bank or its operating the OCC’s precedent and practice for the further provides that the national bank subsidiary may engage in loan last two decades. may take the share or stock warrant in production activities at a site other than The OCC abandoned in the 1990s the addition to, or in lieu of, interest. the main office or a branch office of the aggregation theory relied upon by the However, the national bank may not bank. Proposed paragraph (a) permitted commenter.34 Current § 7.1004 is a safe condition the borrower’s ability to repay a national bank or its operating harbor based on specific judicial principal on the value of the profit, subsidiary to solicit loan customers, precedent.35 The proposed revisions income, earnings of the business market loan products, assist persons in remove the § 7.1004 safe harbor because enterprise or upon the value of the completing application forms and it is redundant with the broader warrant received. related documents to obtain a loan, permissibility standard in § 7.1005. originate and approve loans, make Because proposed § 7.1004 is The former OTS and its predecessor, credit decisions regarding a loan consistent with the OCC precedent the Federal Home Loan Bank Board, application, and offer other lending- discussed, no changes are needed in permitted a Federal savings association related services such as loan response to this comment. to take a share of profit, income, or information and applications at a loan This commenter also stated that the earnings as consideration for a loan. production office without violating 12 proposed ‘‘non-branch’’ rules conflict OTS found this to be not inconsistent U.S.C. 36 and 12 U.S.C. 81, provided with the limits on National Bank Act with Federal savings association lending 37 that ‘‘money’’ is not deemed to be ‘‘lent’’ preemption prescribed by Congress that authority under HOLA to maintain at that site within the meaning of provide that National Bank Act parity with the commercial lending 38 § 7.1003 and the site does not accept preemption does not apply to agents, practices of national banks. In deposits or pay withdrawals. This affiliates or subsidiaries of national addition, the former OTS permitted a description of activities is not intended banks. The OCC disagrees with this Federal savings association to acquire to alter the description of ‘‘money lent’’ comment. The Dodd-Frank Act’s limits warrants as an incidental power of its in § 7.1003 nor affect the scope of on preemption for agents, affiliates, or authority to make secured loans for activities that are permissible for a subsidiaries of national banks are not commercial, corporate, or business national bank to perform at a non- implicated by this rulemaking. The purposes under HOLA and applied the branch location. Rather, the OCC proposed this description to clarify the 34 OCC Interpretive Letter No. 667 (Oct. 12, 1994); 36 12 CFR 25.09; 85 FR 34734, at 34798 (June 5, activities a national bank may conduct OCC Interpretive Letter No. 902 (Nov. 16 2000); 61 2020). FR 4849, at 4851 (Feb. 9, 1996); 60 FR 11924, at 37 12 U.S.C. 1464(c)(2). 11926 (March 3, 1995). 38 Unpublished letter from Jordan Luke, Gen. 31 OCC Interpretive Letter No. 634 (July 23, 1993). 35 See Indep. Bankers Ass’n of America v. Couns., Federal Home Loan Bank Board (Dec. 19, 32 OCC Interpretive Letter No. 667 (Oct. 12, 1994). Heimann, 627 F.2d 486, 487 (D.C. Cir. 1980), as 1988), available on Westlaw: OTS, 1988 WL 33 61 FR 4849, at 4851 (Feb. 9, 1996). discussed in 61 FR 4849, at 4851 (Feb. 9, 1996). 1022319.

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same restrictions on exercising those in stock collateral under applicable may purchase stock of a SBIC and warrants as applied to national banks.39 State laws,43 including by being listed receive benefits of the stock ownership. The OCC proposed to amend § 7.1006 as nominee. In contrast, specifically This section further provides that the to include Federal savings associations identifying only a single method to receipt and retention of a dividend from and to codify these interpretations to perfect an interest in stock collateral as a SBIC in the form of stock of a clarify this authority and to better in § 7.1009 could lead a bank to believe corporate borrower of the SBIC is not a provide parity with national banks. The that being listed as nominee is the only purchase of stock within the meaning of OCC received no comments on the acceptable method for perfection. 12 U.S.C. 24(Seventh). proposed change and adopts it in the Therefore, the OCC is removing § 7.1009 The OCC proposed to amend § 7.1015 final rule as proposed. as proposed. to provide that a national bank may invest in a SBIC or in any entity National Bank Holding Collateral Stock Postal Services by National Banks and established solely to invest in SBICs, as Nominee (§ 7.1009) Federal Savings Associations (§ 7.1010) and that purchasing stock in a SBIC is Section 7.1009 states that a national Section 7.1010 provides that a one example of this type of investment. bank may transfer stock it has received national bank may operate and receive This amendment more closely aligns as collateral for a loan into the bank’s income from a postal substation on § 7.1015 to 15 U.S.C. 682(b). In addition, name as nominee.40 The OCC proposed banking premises. It describes the OCC proposed to amend § 7.1015 to to delete this provision as unnecessary. permissible services and states that a provide that a national bank’s SBIC The OCC permits a bank to perfect its national bank may advertise to attract investments are subject to appropriate security interests in collateral under customers to the bank. It also requires capital limitations. applicable State laws consistent with the bank to operate the substation in Fifteen U.S.C. 682(b)(2) provides a 41 the Uniform Commercial Code. In accordance with the rules and Federal savings association with similar situations where a bank holds stock as regulations of the United States Postal authority to invest in SBICs.46 This collateral, one method to perfect that Service (USPS) and to keep books and authority is codified in OCC regulations interest under State law is to list the records on the substation, which are at 12 CFR 160.30. To clarify this bank as nominee on the stock certificate. subject to inspection by the USPS, authority, the OCC proposed to add a However, recent versions of the Uniform separate from those of other banking reference to Federal savings association 42 Commercial Code provide other operations. SBIC authority in § 7.1015 and cross- potentially less burdensome methods to The OCC proposed to amend § 7.1010 reference to 12 CFR 160.30. perfect an interest in securities to also apply to Federal savings The OCC also proposed to amend collateral, for example, by obtaining associations. This would be consistent § 7.1015 to clarify that a national bank control over a brokerage account with the position taken in agency or Federal savings association may holding the stock. Therefore, the OCC guidance.44 The OCC also proposed to invest in a SBIC that is either (1) already believes that § 7.1009 is not necessary. replace the phrase ‘‘operate a postal organized and has obtained a license Removing this provision streamlines the substation’’ with ‘‘provide postal from the Small Business Administration rule while not substantively changing services’’ because the term ‘‘postal or (2) in the process of being organized. the methods national banks may use to substation’’ is no longer used in USPS The OCC has previously interpreted this perfect their interests in stock or other regulations. This change in terminology authority to permit a national bank to securities obtained as collateral for clarifies that national banks and Federal invest in a SBIC that is in the process loans, which continue to include being savings associations may offer a limited of being organized.47 listed as nominee if permitted under menu of postal services and are not The OCC did not receive any State law. required to operate full-service post comments on the proposed amendments The OCC received one comment on offices. to this section. Therefore, the OCC this provision. The commenter argued The OCC received no comments on adopts these changes as proposed. that removing the provision may cause these proposed amendments and adopts However, the OCC received one national banks to believe the OCC is § 7.1010 as proposed. comment requesting that the OCC now requiring the use of the least National Bank and Federal Savings clarify that a national bank may retain burdensome method for perfecting stock Association Investments in Small an investment in a SBIC that has collateral and it is now impermissible to Business Investment Companies surrendered its license to operate as a hold collateral stock as nominee. The (§ 7.1015) SBIC during its wind-down period so commenter requested that the OCC long as it does not make new Fifteen U.S.C. 682(b)(1) permits a retain the provision in the rule. investments (other than investments in The OCC disagrees with the national bank to invest in one or more small business investment companies cash equivalents). The commenter commenter’s suggestion. Nothing in the further noted that this change would former provision or in removing the (SBICs) or in any entity established solely to invest in SBICs, provided that align with the Volcker Rule provision requires a national bank to implementing regulations, which use the least burdensome method for the total amount of all SBIC investments does not exceed five percent of the exclude SBICs from the definition of perfecting its interest in stock collateral ‘‘covered fund,’’ and which were or prohibits other methods of perfection. bank’s capital and surplus.45 Section 7.1015 provides that a national bank recently revised to make clear that this As explained above, the OCC permits a exclusion would continue to apply bank to use any legally acceptable where a SBIC issuer has voluntarily method to perfect its security interests 43 See OCC, Comptroller’s Handbook: Asset-Based Lending at 21–22 (2017). 44 The former OTS previously concluded that 46 As with national banks, Federal savings 39 Id. Federal savings associations are authorized to associations also may invest in SBICs pursuant to 40 See 12 U.S.C. 24(Seventh). operate a postal substation on premises. See OTS their community development investment 41 See OCC, Comptroller’s Handbook: Asset-Based Op. Acting Ch. Couns. (Mar. 25, 1994). authority. See 12 U.S.C. 1464(c)(4)(B) and 12 CFR Lending at 21–22 (2017). 45 National banks also may invest in SBICs 5.59 (Service corporations of Federal savings 42 Primarily Articles 8 and 9, which have been pursuant to their community development associations). substantively adopted by all U.S. jurisdictions. See investment authority See 12 U.S.C. 24(Eleventh); 12 47 See OCC Interpretive Letter No. 832 (June 18, https://www.uniformlaws.org/acts/ucc. CFR part 24. 1998).

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surrendered its license to operate as a it updated its regulation that Federal understands that the inclusion of this SBIC in accordance with 13 CFR savings associations were not language in § 7.1016 regarding Federal 107.1900 and does not make new traditionally involved in international branches and agencies and not in other investments (other than investments in banking transactions, which utilized sections in part 7 may introduce cash equivalents) after such voluntary these independent undertakings, as confusion. Instead, the OCC expects to surrender. Further, the commenter were national banks.49 The OTS stated add this language to § 7.1016 and other suggested that introducing similar that the approval requirement provided provisions of part 7, as appropriate, in clarity into part 7 would provide ‘‘the appropriate balance between giving a future rulemaking.52 certainty to banks wanting to invest in thrifts greater flexibility to potentially One commenter recommended that SBICs and would increase investment in engage in new types of transactions the OCC reinforce that the risk small businesses. while at the same time ensuring that management considerations outlined for The OCC agrees with the commenter thrifts have properly evaluated the risks letters of credit and independent that it would be helpful to clarify that posed by a particular transaction undertakings in § 7.1016 are not a bank may retain an interest in a SBIC consistent with prudent banking mandatory safety and soundness during its wind-down period. This practice.’’ 50 conditions by removing them from the change would align with the Volcker The OCC proposed to apply § 7.1016 text of the rule. The OCC disagrees. Rule implementing regulations, and it to Federal savings associations and to Section 7.1016(b) provides safety and would provide certainty to banks remove §§ 160.50 and 160.120 because soundness considerations for banks that planning to invest in SBICs. Therefore, of the similarities between the national issue independent undertakings. the OCC is revising its final rule to bank and Federal savings association Section 7.1016(b)(1) states that, as a clarify that a national bank may retain independent undertaking regulations. matter of safety and soundness, banks an investment in a SBIC that has The OCC also proposed technical that issue independent undertakings surrendered its license to operate as a changes to the footnote to § 7.1016 to should not be exposed to undue risk SBIC during its wind-down period so reflect updates to the laws and rules of and should, at a minimum, consider the long as it does not make new practice cited. The OCC did not receive following before issuing independent investments in a SBIC that is winding any comments on these amendments undertakings: (1) Whether the terms down (other than investments in cash and adopts them as proposed. make clear the independence of the equivalents). The OCC also proposed to clarify that undertaking; (2) whether the amount of Federal branches and agencies of foreign Independent Undertakings Issued by a the undertaking is limited; (3) whether banks may issue letters of credit and the undertaking is limited in duration National Bank or Federal Savings other independent undertakings, Association To Pay Against Documents or, if not, whether the bank has an consistent with the conditions outlined ability to end the undertaking or (§ 7.1016) 51 in § 7.1016. Two commenters demand cash collateral from the Pursuant to 12 CFR 7.1016, a national requested clarification as to whether the applicant; and (4) whether the bank may issue letters of credit and proposed reference to Federal branches undertaking will be collateralized or other independent undertakings within and agencies in § 7.1016 implies that include a reimbursement right. Section the scope of the applicable laws or rules other sections in part 7 are not intended 7.1016(b) provides additional of practice. Section 7.1016(b) provides to apply to Federal branches and considerations in special circumstances that a national bank entering into an agencies. One commenter recommended to protect against credit, operational, independent undertaking should not that the final rule clarify that nothing in and market risk. Section 7.1016(b)(3) expose itself to undue risk and also proposed § 7.1016 is meant to imply states that the national bank or Federal outlines certain safety and soundness that other sections of part 7 do not apply savings association should possess considerations for these activities. equally to Federal branches and operational expertise that is Section 7.1016 also describes specific agencies as to national banks and commensurate with the sophistication required or recommended protections Federal savings associations, consistent of its independent undertaking for certain undertakings, provides that a with the International Banking Act. activities. By using the word ‘‘should,’’ national bank should possess After considering these comments, the these provisions clearly indicate that the operational expertise that is OCC has decided to remove the listed safety and soundness commensurate with the sophistication language regarding Federal branches considerations are not mandatory. of its independent undertaking and agencies. Although the OCC did not Furthermore, the OCC finds that it is activities, and requires a bank to intend the clarification that Federal helpful to include these recommended accurately reflect its undertakings in its branches and agencies of foreign banks considerations in the rule text so that records. may issue letters of credit and other national banks and Federal savings Pursuant to § 160.50, a Federal independent undertakings, consistent associations understand what the OCC savings association may issue letters of with the conditions outlined in may consider to be undue risk. credit and may issue other independent § 7.1016, to affect the applicability of undertakings as are approved by the the International Banking Act and 12 Financial Literacy Programs Not OCC, subject to the restrictions in CFR 28.13 to other sections of part 7, it Branches of National Banks (§ 7.1021) § 160.120. Section 160.120 contains Twelve CFR 7.1021 provides that a 49 provisions that are largely similar to the Id. national bank may participate in a 50 Id. provisions applicable to national banks financial literacy program on the in § 7.1016.48 However, §§ 160.50 and 51 Section 4(b) of the International Banking Act, 12 U.S.C. 3102(b) (Pub. L. 95–369) provides that the 160.120 provide that, unless it is a letter operations of a foreign bank at a Federal branch or 52 As indicated below, the final rule adds Federal of credit, a Federal savings association agency shall be conducted with the same rights and branches and agencies to § 7.3000, National bank only may issue independent privileges as a national bank at the same location and Federal savings association hours. Because of undertakings that have been approved and shall be subject to all the same duties, the difference in corporate structure of these restrictions, penalties, liabilities, conditions, and entities as compared to national branches and by the OCC. The OTS explained when limitations that would apply under the National Federal savings associations, it is necessary to have Bank Act to a national bank doing business at the separate language for Federal branches and agencies 48 See 61 FR 50951, at 50958 (Sept. 30, 1996). same location. See also 12 CFR 28.13. in this provision.

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premises of, or at a facility used by, a event, subject to certain safeguards to person transporting items related to school. Section 7.1021 also provides prevent operation of the program as a branching functions to the bank would that the school premises or facility will branch—such as having a school official be a messenger service, and messenger not be considered a branch of the bank accept the checks and deposit them in services are considered branches unless if: (1) The bank does not establish and a portable lockbox which the branch they are established by a third-party.53 operate the school premises or facility employee could then be responsible for If the service is being performed by a on which the financial literacy program bringing to the branch. Further, this bank employee as part of his duties, it is conducted; and (2) the principal commenter recommended removing is not established by a third party. purpose of the program is educational. language from the proposal indicating Fourth, the OCC is retaining the Facilities or premises are only that the OCC would consider the facts language regarding the agency’s considered to be branches of a national and circumstances on a case-by-case commitment on a case-by-case basis to bank if they are established and basis in determining whether other evaluate situations outside of the safe operated by the national bank. The financial literacy programs outside of harbor. This language is meant to clarify proposal provided that the OCC would the safe harbor constitute a branch. that premises and facilities in such consider establishment and operation in Additionally, this commenter suggested situations will not automatically be this context on a case by case basis, not referring to the messenger service found to be branches. This language is considering the facts and circumstances. safe harbor as a ‘‘test’’ in order to avoid not meant to impose an obligation on However, the proposal stated that the the implication of additional banks to always submit a request to the premises or facility would not be a compliance and audit requirements for OCC for a determination before branch of the national bank if the bank the operation of financial literacy implementing a financial literacy met the safe harbor test in 12 CFR programs. program outside of the scope of the safe 7.1012(c)(2) applicable to messenger The OCC disagrees with this harbor. Banks may forgo asking for an services established by third parties. commenter’s recommendations for the OCC interpretation if they are The proposal also stated that the factor reasons set forth below and thus adopts comfortable with how their program discussed in § 7.1012(c)(2)(i) could be § 7.1021 as proposed. First, the OCC would fit into the OCC’s expectations met if bank employee participation in believes that cross referencing the and precedent. the financial literacy program consisted messenger service regulation at § 7.1012 Finally, the OCC clarifies that, by use of managing the program or conducting is the best approach for § 7.1021 because of the term ‘‘test,’’ it does not mean to or engaging in financial education the safe harbor for a messenger service impose any extra audit or other activities provided the school or other may evolve through regulatory changes, compliance requirements on these organization retained control over the statutory changes, new judicial programs or to suggest that these program and over the premises or decisions, or new OCC interpretations. programs must be subjected to facilities at which the program is held. By using a cross reference, the OCC measurement, ratings, or other Further, the OCC proposed expanding automatically incorporates into the performance measures. The OCC has the scope of financial literacy programs financial literacy regulation all routinely referred to safe harbors as beyond schools to encompass other evolutions of the messenger service ‘‘tests’’ in interpretive letters, guidance, community-based organizations, such as precedent. and regulations without the implication non-profit organizations, that provide Second, the OCC disagrees with the of additional obligations. financial literacy programs. Finally, the commenter’s suggestion that a bank For the reasons explained above, the proposal moved the definition of employee may manage the financial OCC is adopting § 7.1021 as proposed. financial literacy program to the literacy program or engage in other beginning of the section to clarify that, financial education activities without National Banks’ Authority To Buy and while a financial literacy program is a the facility being considered a branch so Sell Exchange, Coin, and Bullion program for which the primary purpose long as the school or organization (§ 7.1022) Federal Savings Associations, is educational, this is not a factor in retains control over the program and Prohibition on Industrial or Commercial determining whether the premises or over the premises or facilities at which Metal Dealing or Investing (§ 7.1023) facility is a branch for purposes of the program is held. Whether a third The OCC proposed a technical change section 36. party other than a national bank owns to §§ 7.1022 and 7.1023. Section 7.1022 One commenter provided or rents the facility involved is only one prohibits a national bank from acquiring recommendations for simplifying the factor in the safe harbor described in or selling industrial or commercial requirements for operating financial § 7.1012(c)(2) for a messenger service to metal for purposes of dealing or literacy programs. This commenter be clearly ‘‘established’’ by a third- investing. Section 7.1022 excludes suggested incorporating the relevant party. The OCC does not believe it is industrial and commercial metals from standards for operating a financial appropriate to disregard all the other the national bank authority to ‘‘buy and literacy program within the messenger factors necessary to qualify for the safe sell exchange, coin, and bullion.’’ service safe harbor directly into the rule, harbor when considering school literacy Section 7.1023 similarly prohibits a without cross-referencing the messenger programs as analysis of other factors in Federal savings association from dealing service rule. This commenter also § 7.1012 may be determinative under or investing in industrial or commercial suggested that § 7.1021 directly state, as some circumstances. However, it will metal. Both sections require a national a stand-alone provision, that a bank continue to evaluate programs that do bank and a Federal savings association employee may manage the financial not fulfill all the factors of the safe to dispose of any industrial or literacy program or engage in other harbor on an individual basis. commercial metal held as a result of financial education activities, provided Third, the OCC disagrees with the dealing or investing in that metal as the organization retains control over the commenter’s recommendation of setting soon as practicable, but not later than program and premises at which the forth a provision that expressly permits one year from the effective date of the program is held. Along the same lines, a bank employee to accept checks at a this commenter recommended expressly financial literacy program event, subject 53 See First Nat’l Bank of Plant City v. Dickinson, permitting a bank employee to accept to certain safeguards to prevent 396 U.S. 122 (1969); Brown v. Clarke, 878 F.2d 627 checks at a financial literacy program operation of the program as a branch. A (2d Cir. 1989).

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regulation. The OCC may grant up to criteria and standards that are and 50 of the Internal Revenue Code, four separate one-year extensions if the substantially equivalent to the Revenue Procedure 2007–65 and bank makes a good faith effort to underwriting and credit approval Revenue Procedure 2014–12, and dispose of the metal and the retention criteria and standards used for whether the proposed rule would make of the metal for an additional year is not traditional loans. This is consistent with renewable energy TEF transactions non- inconsistent with the safe and sound the notion that a permissible TEF compliant with these laws and IRS operation of the bank. The OCC transaction is the functional equivalent Procedures. The OCC is familiar with proposed to replace the phrase ‘‘one of a loan. sections 49 and 50 of the Internal year from the effective date of this One commenter stated that there is an Revenue Code, Revenue Procedures regulation’’ with the actual effective existing rental affordability crisis and 2007–65 and 2014–12, as well as other date of that final rule, April 1, 2018 in therefore the OCC should not impose IRS rules and guidance on tax credits, each section. The OCC received no burdensome requirements and and believes the TEF provision would comments on this technical change and restrictions on tax equity finance not prevent a national bank or Federal adopts it as proposed. transactions that might reduce low savings association from complying income housing tax credit investment. with IRS rules, procedures, and Tax Equity Finance Transactions by The OCC believes the clarity and safety standards. Therefore, OCC is finalizing National Banks and Federal Savings and soundness benefits of § 7.1025 § 7.1025(a) as proposed. Associations (New § 7.1025) outweigh any potential burden. The OCC proposed to define a ‘‘tax The OCC proposed a new § 7.1025 Moreover, § 7.1025 provides an equity finance transaction’’ in that codifies the authority of national additional authority for national banks § 7.1025(b)(1) as a transaction in which banks and Federal savings associations and Federal savings associations to a national bank or Federal savings to engage in tax equity finance (TEF) make TEF transactions. It does not limit association provides equity financing to transactions under 12 U.S.C. or impede a national bank or Federal fund a project that generates tax credits 24(Seventh) and 1464 lending authority, savings association from participating in and other tax benefits and the use of an respectively.54 As defined in proposed transactions under other existing equity-based structure allows the paragraph (b)(1), a TEF transaction is a authorities. Therefore, if a national bank transfer of those credits to the bank or transaction in which a national bank or or Federal savings association wishes to savings association. The OCC received Federal savings association provides engage in a low income housing tax two comments on this provision. One equity financing to fund a project that credit investment under existing public commenter suggested that the OCC generates tax credits and other tax welfare investment or community should review current draft legislation benefits and the use of an equity-based development authority, it could do so as for impacts on the terms ‘‘generation’’ structure allows the transfer of those tax long as it meets the requirements of and ‘‘renewable’’ if energy storage is credits and other tax benefits to the those existing authorities. added to section 48 of the Internal bank or savings association. Relatedly, the OCC received eight Revenue Code. Proposed § 7.1025(b)(1) Specifically, the OCC proposed in comments requesting that the OCC defines a tax equity finance transaction paragraph (a) of § 7.1025 that a national confirm that TEF authority is separate in part to mean a transaction that bank and Federal savings association and apart from the public welfare generates tax credits and other benefits. may engage in a TEF transaction investment authority and community In response, the OCC notes that, because pursuant to 12 U.S.C. 24(Seventh) and development investment authority. As the definition does not limit tax equity 1464, respectively, if the transaction is indicated above, the authority granted finance transactions to only those that the functional equivalent of a loan, as under § 7.1025 operates in addition to relate to energy generation, if section 48 provided in proposed paragraph (c), and the existing public welfare investment were amended to add energy storage, if the TEF transaction satisfies the authority and community development national banks and Federal savings applicable conditions of proposed investment authority under 12 U.S.C. associations would be able to engage in paragraph (d). Paragraphs (c) and (d) are 24(Eleventh), 12 U.S.C. 1464(c)(3)(A), 12 transactions involving energy storage described below in the context of the CFR part 24, 12 CFR 160.30, and 12 CFR that met the requirements of § 7.1025. comments received. 160.36, and will not be a replacement Another commenter noted that a TEF The OCC received eight comments on authority. To the extent an investment structure may involve other tax benefits this section. One commenter stated that would qualify under multiple in addition to tax credits, such as the proposed rule would increase authorities, the national bank or Federal deductions and other items that fall administrative compliance burden and savings association may determine under the category of tax equity. The suggested the OCC should not codify a which authority it is using to engage in OCC acknowledges that tax benefits may rule that addresses the underwriting the transaction. To eliminate any take many forms and is revising process but rather should generally confusion on this point, the final rule proposed § 7.1025(b)(1), redesignated as require the institutions it regulates to adds a sentence to § 7.1025(a) indicating § 7.1025(b)(3) in the final rule, to change establish safety and soundness that the authority under § 7.1025 is ‘‘generates tax credits and other tax standards consistent with other pursuant to 12 U.S.C. 24(Seventh) and benefits’’ to ‘‘generates tax credits or extensions of credit. The OCC disagrees 1464 lending authority and is separate other tax benefits.’’ with this comment. Proposed § 7.1025 from, and does not limit, other The OCC also requested comment on distills current precedent and standards. investment authorities available to whether national banks and Federal Rather than attempt to prescribe the national banks and Federal savings savings associations are currently underwriting process for national banks associations. participating in TEF transactions and Federal savings associations, the One commenter supported the intent through fund-based structures and, if proposal required national banks and of the proposed rule but suggested the not, whether national banks and Federal Federal savings associations to use OCC needs to familiarize itself with, and savings associations would want to underwriting and credit approval contemplate the impact of, certain participate in TEF transactions through Internal Revenue Service (IRS) rules and fund-based structures. A fund-based 54 For a discussion of existing precedent on such standards relating to TEF transactions structure is a structure in which a authority, see 85 FR 40794 (July 7, 2020). and structures, including sections 49 national bank or Federal savings

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association invests in a fund that is savings association’s allowance for loan including holding the investment to invested or will invest in multiple TEF and lease losses or adjusted allowances comply with the 15-year recapture transactions. Seven commenters for credit losses, as applicable, not period for LIHTC investments. responded to this question and included in the bank’s or savings Three commenters suggested that a suggested that the final rule should association’s tier 2 capital, for purposes requirement that the sponsor have a call allow TEF investments through of the calculation of risk-based capital, option would have adverse tax investment funds or other funds-based as reported in the national bank’s or consequences in certain TEF structures. For the reasons discussed by savings association’s Call Report. The transactions and suggested removing commenters, including diversifying risk, OCC received no comments on that requirement. However, proposed enabling smaller investments, and proposed § 7.1025(b)(2) and is finalizing § 7.1025(c)(2) does not require that a permitting less experienced national it as proposed. sponsor must have a call option in order banks and Federal savings associations Under proposed § 7.1025(c), a TEF to comply with § 7.1025; it requires only to participate alongside more transaction would qualify as the that the transaction is of limited tenure experienced TEF investors, the OCC functional equivalent of a loan if it and is not indefinite, such as a limited will permit TEF investments through meets seven requirements that derive investment interest requirement by law investment funds as long as the from OCC interpretations. First, to obtain continuing tax benefits. The investment meets all of the paragraph (c)(1) provides that the TEF OCC used a call option as an example requirements and conditions of transaction structure must be necessary in the preamble to the proposed rule as § 7.1025. The OCC is revising proposed for making the tax credits and other tax one way a national bank or Federal § 7.1025(b)(1), redesignated as benefits available to the national bank or savings association could comply with § 7.1025(b)(3) in the final rule, to change Federal savings association. One the limited tenure requirement. The ‘‘. . . to fund a project that generates tax commenter suggested that the OCC OCC did not intend this to be an credits . . .’’ to ‘‘. . . to fund a project should clarify that the tax equity finance exhaustive list. or projects that generate tax credits transaction structure may be necessary One commenter suggested the OCC . . . .’’ for making the tax credits or other tax clarify in the final rule that TEF The OCC is adopting the proposed benefits available. The OCC investments may be retained for the definition of ‘‘tax equity finance acknowledges that tax benefits may take duration needed to obtain the expected transaction’’ with these two changes many forms and is revising proposed rate of return consistent with market discussed above. § 7.1025(c)(1) to change ‘‘making the tax practices for such an investment. The The proposed rule included an credits and other tax benefits available’’ OCC agrees with the commenter and is aggregate total dollar limitation on TEF to ‘‘making the tax credits or other tax revising § 7.1025(c)(2) to require that the transactions that a national bank or benefits available.’’ With this revision, transaction is of limited time and is not Federal savings association could the OCC is finalizing § 7.1025(c)(1). indefinite, including retaining a limited engage in based on a percentage of a Second, paragraph (c)(2) provides that investment interest that is (1) required national bank or Federal savings the TEF transaction must be of limited by law to obtain continuing tax benefits association’s capital and surplus. The tenure and not indefinite. Under this or (2) needed to obtain the expected rate OCC proposed to define ‘‘capital and requirement, a national bank or Federal of return. surplus’’ in § 7.1025(b)(2) by cross- savings association would need to be One commenter suggested proposed referencing to its definition in the OCC’s able to achieve its targeted return in a § 7.1025 could result in the sale of an investment at a price lower than the lending limit rule at 12 CFR part 32.55 reasonable time, and the TEF bank could otherwise obtain. Although As defined in the lending limit rule, for transaction would need to have a a national bank or Federal savings qualifying community banking defined termination point. A national association may exit a TEF transaction organizations that have elected to use bank or Federal savings association through a sale to a third party, the OCC the community bank leverage ratio could satisfy this requirement if the TEF does not expect that sale to be framework as set forth under the OCC’s transaction will terminate within a immediate if it would result in fire sale Capital Adequacy Standards at 12 CFR reasonable time of the transaction’s initiation or if a project sponsor has an pricing. One commenter suggested the part 3, ‘‘capital and surplus’’ means a option to purchase a national bank’s or OCC should clarify that it is permissible qualifying community banking Federal savings association’s interest at to have a purchase option price that organization’s tier 1 capital, as used or near fair market value. The national includes an amount necessary for a under 12 CFR 3.12, plus a qualifying bank or Federal savings association national bank or Federal savings community banking organization’s cannot control whether it retains the association to achieve its expected rate allowance for loan and lease losses or interest indefinitely. The proposed rule of return. The OCC notes that an option adjusted allowances for credit losses, as permitted a national bank or Federal to purchase may include an amount applicable, as reported in the savings association to retain a limited necessary for a national bank or Federal Consolidated Reports of Condition and investment interest if that interest is savings association to achieve its Income (Call Report). For all other required by law to obtain continuing tax expected rate of return, and the OCC national banks and Federal savings benefits from the TEF transaction. The believes this would be consistent with associations, ‘‘capital and surplus’’ OCC received five comments on this the requirements and conditions of means a national bank’s or savings requirement. § 7.1025. association’s tier 1 and tier 2 capital, Three commenters requested One commenter requested the OCC calculated under the risk-based capital clarification that the 15-year holding explicitly permit other structures that standards applicable to the institution period for LIHTC investments would are required by law to obtain tax as reported in the Call Report, plus the not violate the limited tenure benefits. This commenter cited to balance of a national bank’s or Federal requirement. The OCC confirms that Internal Revenue Service Revenue under § 7.1025(c)(2), a national bank or Procedure 2014–12, which the 55 The OCC recently amended the definition of ‘‘capital and surplus’’ in 12 CFR 32.2 in its recent Federal savings association may hold an commenter stated provides a safe harbor community bank leverage ratio rule. See 84 FR investment in order to obtain and retain for an exit structure in which the 61776 (November 13, 2019). tax benefits as required by law, investor ‘‘puts’’ its interest back to the

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project instead of the sponsor having an of ‘‘implied rate of return’’ so that the association must be a passive investor in option to purchase the interest at or near final rule does not render moot the the transaction and must not be able to fair market value. The OCC agrees with decision in this case that recognized the direct the affairs of the project company. the commenter that transaction congressional purposes underlying This means that the national bank or structures that provide different exit Federal tax credits and held that a Federal savings association is not able to options may satisfy § 7.1025(c) as long pretax profit was not required for direct day-to-day operations of the as the national bank or Federal savings economic substance purposes. The OCC project. However, the OCC does not association does not control whether it does not believe that § 7.1025(c)(3) consider temporary management retains the interest indefinitely. renders this case moot. Consistent with activities in the context of foreclosure or However, the safe harbor provided in Sacks,57 § 7.1025(c)(3) does not require similar proceedings as violating this IRS Revenue Procedure 2014–12, in a pretax profit, rather, it simply requires requirement. One commenter suggested which the national bank or Federal an expected rate of return that that the OCC should clarify in the final savings association would have a put contemplates the tax credit and other rule that customary protective rights option that it could have the sponsor benefits. and covenants are permitted and do not purchase the interest at or near market One commenter suggested that in violate the ‘‘passive investor’’ value, would not satisfy, by itself, the matters concerning any residual stake in requirement of § 7.1025(c)(6). The OCC requirements of § 7.1025(c)(2) because a the project, the IRS true lease authority agrees that customary protective rights put option alone would allow the must be understood, and the OCC and covenants are permitted and do not national bank or Federal savings should not force or cause a renewable violate § 7.1025(c)(6). However, the OCC association to decide whether it would energy project sponsor to violate IRS does not believe changing the proposed hold the investment indefinitely (i.e., let requirements. Proposed § 7.1025(c)(3) rule text is necessary. TEF transactions the put expire). The national bank or does not contain residual stake are the functional equivalent of loans Federal savings association could language. Rather, as the preamble to the and many of the same terms, conditions, couple the put option with another exit proposed rule explained, a national and covenants found in lending and mechanism in which both the IRS safe bank’s or Federal savings association’s lease financing transactions are harbor and the requirements of the TEF underwriting should not place undue permissible for TEF transactions. In provision are met, such as a put option reliance on the value of any residual some cases, these terms, conditions, and coupled with a contract provision stake in the project. The OCC does not covenants may be necessary to comply providing that after a certain amount of believe that this language in any way with the requirement in § 7.1025(c)(5) time has passed or a certain rate of would cause or force a project sponsor that underwriting and credit approval return has been reached, the interest to violate IRS requirements. With the criteria and standards must be will revert from the national bank or revision discussed above, the OCC is substantially the same as those used for Federal savings association to the finalizing § 7.1025(c)(3). traditional commercial loans. The OCC sponsor. With the change described Fourth, paragraph (c)(4) provides that is finalizing § 7.1025(c)(6) as proposed. above, the OCC is finalizing the national bank or Federal savings Seventh, paragraph (c)(7) provides § 7.1025(c)(2). association must not rely on that the national bank or Federal savings Third, paragraph (c)(3) provides that appreciation of value in the project or association must appropriately account the tax benefits and other payments property rights underlying the project for the transaction initially and on an received by the national bank or Federal for repayment. As discussed in OCC ongoing basis and document savings association from the TEF Interpretive Letter No. 1139 (November contemporaneously its accounting transaction must repay the investment 13, 2013), wind turbines, solar panels, assessment and conclusion. Although and provide an implied rate of return. and other ancillary equipment are not TEF transactions can be the functional As a result of this proposed considered real property under 12 equivalent of loans pursuant to a requirement, the national bank’s or U.S.C. 29, and acquisition of interests in national bank’s or Federal savings Federal savings association’s real estate incidental to the provision of association’s lending authority, the underwriting could not place undue financing is not inconsistent with 12 accounting treatment of tax equity reliance on the value of any residual U.S.C. 29. The OCC received no investments may differ from the stake in the project and the proceeds of comments on this requirement and is treatment of a loan. Two commenters disposition following the expiration of finalizing § 7.1025(c)(4) as proposed. noted that investments in housing credit the tax credits’ compliance period. The Fifth, paragraph (c)(5) provides that transactions are structured as equity OCC received two comments on the national bank or Federal savings investments and requested that those proposed § 7.1025(c)(3). One commenter association must use underwriting and investments be treated as equity suggested that the OCC should clarify in credit approval criteria and standards investments and not loans for Federal the final rule that the calculation of the that are substantially equivalent to the income purposes. The OCC rate of return is the expected rate of underwriting and credit approval acknowledges that although a return at the time the investment is criteria and standards used for a transaction may be the functional initially made and revise § 7.1025(c)(3) traditional commercial loan. To comply equivalent of a loan for permissibility to refer to the expected rate of return at with this requirement, the documents purposes, it may be treated as an equity original underwriting. The OCC agrees governing the TEF transaction should investment for accounting or tax with the commenter and is revising contain terms and conditions equivalent purposes. Section 7.1025(c) provides § 7.1025(c)(3) to refer to the expected to those found in documents governing that a national bank or Federal savings rate of return at the time of typical lending relationships and association must appropriately account underwriting. transactions. The OCC received no for the transaction initially and on an One commenter suggested that the comments on this requirement and is ongoing basis and document its OCC consider Sacks v. Commissioner, finalizing § 7.1025(c)(5) as proposed. accounting assessment and conclusion. Internal Revenue Service 56 and its use Sixth, paragraph (c)(6) provides that The OCC is finalizing § 7.1025(c)(7) as the national bank or Federal savings proposed. 56 Sacks v. Commissioner, Internal Review Proposed paragraph (d) provides that Service, 69 F.3d 982, 991 (9th Cir. 1995). 57 See 69 F.3d at 991. a national bank or Federal savings

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association only may engage in TEF project company’s hedging counterparty § 7.1025(d)(1) simply requires that a transactions if it meets the following does not need to be an unaffiliated third national bank or Federal savings four additional requirements. First, party and may be the national bank or association must not control the sale of proposed paragraph (d)(1) provides that Federal savings association itself or an energy from the project. In the preamble the national bank or Federal savings affiliate of the national bank or Federal to the proposed rule, the OCC provided association cannot control the sale of savings association. The OCC confirms a couple of examples of how a national energy, if any, from the project. To that a project company’s hedging bank or Federal savings association may satisfy this requirement, a national bank counterparty need not be an unaffiliated satisfy the requirement, but these or Federal savings association could third party and may be an affiliate of the examples are illustrative only. The enter into a long-term contract with national bank or Federal savings terms ‘‘creditworthy’’ and ‘‘sell’’ do not creditworthy counterparties to sell association so long as the sale meets the appear in the proposed rule text and energy from the project, as articulated in requirements of § 7.1025 and any instead are used in the proposed rule’s OCC Interpretive Letter 1139, or have applicable affiliate transactions laws preamble to describe examples of how the project sponsor bear responsibility and regulations, including 12 U.S.C. a national bank or Federal savings for selling generated power into the 371c and 371c–1, and 12 CFR part 223, association may satisfy the requirement energy market so long as those sales are and is conducted in a safe and sound in § 7.1025(d)(1). The OCC is finalizing stabilized by a hedge contract that manner (e.g., the counterparty is § 7.1025(d)(1) as proposed. provides reasonable price and cash flow creditworthy). However, a national bank Second, proposed paragraph (d)(2) certainty, as articulated in OCC or Federal savings association itself may provides that the national bank or Interpretive Letter No. 1141 (April 22, not be the hedging counterparty for one Federal savings association must limit 2014). One commenter suggested that of its TEF investments. the total dollar amount of TEF the final rule should clarify that One commenter requested the OCC transactions to no more than five national banks and Federal savings clarify that the right of a national bank percent of its capital and surplus unless associations have appropriate flexibility or Federal savings association to the OCC determines, by written in satisfying this requirement and that prohibit certain sales does not constitute approval of a written request by the the OCC should not require a long-term inappropriate control of the right to sell national bank or Federal savings contract or hedge if the national bank or power. The OCC confirms a national association to exceed the five percent Federal savings association has bank or Federal savings association may limit, that a higher aggregate limit will otherwise determined that exposure to prohibit certain sales or institute certain not pose an unreasonable risk to the cash flow certainty has been adequately credit or other requirements for third national bank or Federal savings mitigated. The OCC confirms that party purchasers of the energy if done association and that the TEF national banks and Federal savings pursuant to prudent underwriting to transactions in the national bank’s or associations have flexibility to satisfy ensure the project’s success and not in Federal savings association’s portfolio this requirement. Proposed an attempt to control, influence, or will not be conducted in an unsafe or § 7.1025(d)(1) requires that national manipulate the energy market. One unsound manner. In no case may a banks and Federal savings associations commenter requested the OCC recognize bank’s or Federal savings association’s cannot control the sale of energy from that a TEF project may sell a portion of total dollar amount of TEF transactions a project, but the provision does not the electricity that it generates into the exceed fifteen percent of its capital and merchant market, and not pursuant to a surplus. As provided for public welfare prescribe that certain agreements or power purchase agreement or a hedge investments under 12 U.S.C. arrangements must be used. Although, contract, and permit a national bank or 24(Eleventh) and 12 CFR part 24, a the preamble for proposed § 7.1025(d)(1) Federal savings association to invest in national bank is generally subject to a lists two examples of ways a national such projects as long as it has five percent aggregate investment limit bank or Federal savings association reasonably determined that any and this limit encourages a national could comply with the requirement, merchant sales by the project company bank to maintain appropriate risk these examples are not the only ways a contribute favorably to the overall diversification.58 The OCC specifically national bank or Federal savings financial health of the project company. requested comment on whether the OCC association could satisfy this The OCC confirms a TEF project may should use an alternate measure when requirement. sell energy into a merchant market as calculating the aggregate investment One commenter suggested the OCC long as the national bank or Federal limit and whether the proposed five should confirm that contracts for the savings association is not controlling the percent aggregate investment limit is sale of energy can be entered into with sale of the energy and the TEF appropriate. One commenter suggested affiliates of the national bank or Federal transaction otherwise complies with the that the final rule should not impose a savings association participating in the requirements and conditions of cap on TEF transactions and instead TEF transaction, so long as such § 7.1025. should continue to be subject to the contracts are consistent with the TEF One commenter suggested that certain limits set forth in 12 CFR part 32 and requirements and do not create negative terms, such as ‘‘long term,’’ other concentration risk limits, which tax consequences. The OCC confirms ‘‘creditworthy,’’ and ‘‘sell’’ make the are appropriate and adequate to any that a national bank or Federal savings provision unworkable given market concentration or similar risks presented association may enter into energy sale realities. The OCC recognizes that there by TEF transactions. One commenter contracts with affiliates as long as the may be changes in market practice and also suggested that only a small number requirements of § 7.1025 are met and standards in the evolving space of TEF of national banks and Federal savings any transaction with an affiliate transactions, and renewable energy associations are able to participate in complies with 12 U.S.C. 371c, 12 U.S.C. transactions in particular. For that TEF transactions and that these banks 371c–1, 12 CFR part 223, and any other reason, § 7.1025(d)(1) does not prescribe would quickly hit this arbitrary five applicable laws and regulations how a national bank or Federal savings percent limit. The OCC is retaining the regarding affiliate transactions. association must comply with the proposed five percent aggregate limit, Similarly, one commenter requested requirement not to control energy from that the OCC explicitly confirm that the the sale of the project. Rather, 58 12 U.S.C. 24(Eleventh); 12 CFR 24.4(a).

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which can be increased up to 15 percent are necessary for subsequent TEF transaction. The OCC is finalizing with written approval from the OCC. transactions or whether after-the-fact § 7.1025(d)(4) as proposed. The OCC interpretations that this notices would be sufficient, and may The OCC requested comment on provision is codifying include a three revise § 7.1025 as appropriate at that whether national banks or Federal percent cap on TEF transactions.59 The time. A well-managed national bank or savings associations routinely obtain OCC believes that a limit is necessary Federal savings association engaging in legal opinions regarding the availability but that the limit can be safely increased TEF transactions under § 7.1025 of tax credits in connection with these to five percent. Although TEF authority must provide prior notice as types of finance transactions. One transactions will be subject to the legal required by § 7.1025 whether engaging commenter suggested that a national lending limits on loans to one borrower in the activity at the bank or savings bank or Federal savings association as the commenter correctly pointed out, association-level or through an should not be required to obtain a legal the OCC believes maintaining the operating subsidiary. The OCC is opinion on the tax benefits of a TEF aggregate transaction limitation will finalizing § 7.1025(d)(3) as proposed, transaction, but rather the OCC should allow the OCC to assess how the with one clarifying change. The final require a good faith, reasoned basis for authority is implemented and any safety rule clarifies that the notice is to be making that determination. The and soundness concerns that may arise. provided to the appropriate OCC commenter suggested that it is not The OCC is finalizing § 7.1025(d)(2) as supervisory office, and adds a definition market practice to obtain a legal opinion proposed. of this term at § 7.1025(b)(1) to mean the that says a TEF structure is ‘‘necessary’’ Third, proposed paragraph (d)(3) OCC office that is responsible for the in order for the tax benefits to be provides that the national bank or supervision of a national bank or available. Instead, the commenter Federal savings association must have Federal savings association, as suggested the OCC should recognize provided written notification to the OCC that national banks and Federal savings described in subpart A of 12 CFR part prior to engaging in each TEF associations employ a range of 4.61 transaction that includes its evaluation approaches to evaluating the tax of the risks posed by the transaction. Fourth, proposed paragraph (d)(4) benefits of TEF transactions. The OCC received four comments on provides that the national bank or The OCC agrees with the commenter this requirement. The commenters Federal savings association must be able that there should be flexibility related to suggested that the OCC should not to identify, measure, monitor, and the legal analysis underlying the tax require national banks and Federal control the associated risks of its tax availability determination. However, the savings associations to provide prior equity finance transaction activities OCC believes that the final rule should written notification and instead should individually and as a whole on an require the national bank or Federal be allowed to provide after-the-fact ongoing basis to ensure that it conducts savings association to have a reasonable notification or follow the post- such activities in a safe and sound basis for determining the availability of notification procedures available under manner. The OCC received one tax credits in connection with TEF the public welfare investment comment related to this provision transactions. Therefore, the OCC is authority.60 One commenter also regarding the use of the word ‘‘control.’’ including in the final rule a more suggested that prior notice for each The commenter suggested that the final flexible provision. Specifically, new transaction is overly burdensome and of rule should eliminate the word § 7.1025(d)(5) requires a national bank little value to examiners, and, if ‘‘control’’ or otherwise acknowledge or Federal savings association to obtain necessary, the OCC should limit it to that it is not meant to suggest that a legal opinion, or to have other good when a bank first engages in TEF national banks and Federal savings faith, reasoned bases for making the activity and not require it for each associations should have more than the determination that tax credits or other subsequent transaction. The OCC limited control over TEF transaction tax benefits are available before disagrees with these comments. A activities that is consistent with the engaging in a TEF transaction. A legal national bank or Federal savings passive nature of these investments. The opinion includes either an outside association may use the appropriate OCC clarifies that use of the word counsel opinion or an opinion provided post-investment notification procedures ‘‘control’’ in relation to risk by a national bank or Federal savings for investments made pursuant to the management of TEF activities is association’s internal or in-house public welfare investment authority or consistent with the passive nature of counsel. Although a legal opinion is not other applicable existing authorities, but these transactions and a national bank the only means to fulfill this to the extent that a national bank or or Federal savings association satisfying requirement, a good faith, reasoned Federal savings association is using TEF this condition would not be in conflict basis requires more than simply authority under § 7.1025, it must with the passivity requirement of accepting a statement from a person or comply with the requirements and § 7.1025(c)(6). Similar to how a national entity promoting an investment. A conditions contained in the provision, bank or Federal savings association national bank or Federal savings including prior written notification, identifies, measures, monitors, and association may not rely solely on the before engaging in each transaction. controls risks related to loans and other assurances of a person or entity Examiner-in-Charge (EIC) non-objection extensions of credit but does not promoting a TEF transaction that tax was required under the OCC’s existing exercise control over the business of the credits will be available. interpretations for TEF transactions. The borrower, a national bank or Federal Proposed paragraph (e) provides that OCC is not creating a new requirement savings association would identify, the TEF transaction must be subject to but, rather, is modifying the non- measure, monitor and control risks the substantive legal requirements of a objection requirement to a less onerous related to the transaction but would not loan, including the lending limits notice requirement. The OCC may be exercising control over the operations prescribed by 12 U.S.C. 84, as assess over time whether prior notices of the project or projects underlying the implemented by 12 CFR part 32, and, if the active investor or project sponsor of 59 OCC Interpretive Letter 1139 (Nov. 13, 2013); 61 This final rule also makes technical changes to the transaction is an affiliate of the OCC Interpretive Letter 1141 (Apr. 22, 2014). part 4, subpart A. See the ‘‘Technical Changes’’ national bank or Federal savings 60 12 CFR 24.5(a). section of this SUPPLEMENTARY INFORMATION. association, the restrictions on

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transactions with affiliates prescribed by not dependent on the end-user segment join payment systems.63 The OCC 12 U.S.C. 371c and 371c-1, as and underlying asset. Therefore, the proposed a new rule that would codify implemented by 12 CFR part 223. If a OCC is finalizing § 7.1025 without a OCC interpretations regarding national national bank or Federal savings prohibition on residential TEF bank membership in payment systems association is relying on its lending transactions. and apply this new provision to Federal authority to participate in a TEF One commenter also requested that savings associations. Specifically, transaction, the TEF transaction would the OCC confirm there is no prohibition proposed § 7.1026 required a national be subject to regulatory requirements on, and that tax credit availability bank or Federal savings association to applicable to loans, including any would not be affected by, national banks provide 30-day prior notice to the OCC applicable legal lending limits and funding a portion of their TEF before joining a payment system if the affiliate transaction restrictions to the investment during late stage bank or savings association would be extent applicable. However, the construction if required to qualify for exposed to open-ended liability. The regulatory capital treatment of a the tax benefits and adequate national bank or Federal savings national bank or Federal savings protections are in place. The OCC association would need to provide the association’s participation in a TEF confirms that there is no prohibition on OCC with a 30-day after-the-fact notice transaction would be determined national banks or Federal savings before joining any other payment system according to the regulatory capital rule associations funding a portion of their where the bank or savings association is (12 CFR part 3). The OCC received no TEF investment during late stage not exposed to open-ended liability. comments on § 7.1025(e) and is construction if required to qualify for These notices must contain finalizing this provision as proposed. the tax benefits and adequate representations that the national bank or The OCC specifically requested protections are in place. However, the Federal savings association has comment on whether the final rule OCC cannot opine on whether late stage identified and evaluated the risks posed should prohibit a national bank or investment would affect the availability by membership in the payment system Federal savings association from of the tax credit and such inquiries and will measure, monitor, and control entering into TEF transactions for should be directed to the IRS. those risks after membership. The projects involving residential Further, the OCC requested comment proposal permitted a national bank or installation TEF transactions not on whether national banks and Federal Federal savings association to consider involving utility-scale standalone savings associations should have other its liability to a particular payment power-generation facilities. One contractual remedies available before system to be limited if the bank or commenter suggested that the final rule entering into a TEF transaction. Two savings association obtains an should not prohibit these transactions commenters suggested that the final rule independent legal opinion confirming so as not to arbitrarily reserve it for only should not prescribe any particular this limited liability prior to joining the one segment of the market. The OCC contractual remedies for TEF payment system. Finally, the proposal concurs with this comment and will not transactions, including guarantees or required a national bank or Federal limit TEF transactions to only those indemnities, but rather, should allow savings association to notify its involving standalone utility-scale power national banks and Federal savings appropriate OCC supervisory office if its generation facilities in the final rule. A associations the flexibility to choose the ongoing review identifies a safety and national bank or Federal savings most appropriate remedies for a given soundness concern as soon as that association may participate in a TEF transaction. Another commenter concern is identified and to take transaction if it meets the requirements suggested that requiring certain appropriate actions to remediate the and conditions of § 7.1025 and the OCC contractual provisions is not necessary, risk. Several commenters expressed has not raised safety and soundness noting that it is common for national general support for the proposed concerns related to the particular banks and Federal savings association to approach for joining payment systems transaction. require such remedies as a business and, as explained further below, the The OCC also requested comment on practice when making other investments OCC is adopting the proposal largely as whether the final rule should permit even though the OCC does not require proposed. national banks or Federal savings them and that such remedies are best Definitions. In proposed § 7.1026(b), associations to invest in TEF left up to national banks and Federal the OCC defined several terms used transactions involving detached single- savings associations. The OCC agrees throughout the new section. First, the family residences, multi-family with these commenters that national proposal defined ‘‘appropriate OCC residences, or non-utility commercial banks and Federal savings associations supervisory office’’ as the OCC office buildings. Five commenters suggested should be afforded the flexibility to that is responsible for the supervision of that the OCC should permit national choose contractual remedies as a national bank or Federal savings banks and Federal savings associations appropriate. Therefore, the OCC is association, as described in subpart A of from entering into these transactions, finalizing § 7.1025 without requiring 12 CFR part 4. The OCC received no with one commenter suggesting the OCC specific contractual remedies. comments on this definition and is should affirm longstanding OCC National Bank and Federal Savings adopting it as proposed. precedent that the legal permissibility of Association Payment System Second, because different payment a TEF transaction is agnostic as to end- Memberships (New § 7.1026) systems may use different terminology, user segment and underlying asset. The the OCC defined ‘‘member’’ to include OCC confirms that it will not prohibit a Section 7.1026 Payment System Memberships. National banks may join a national bank or Federal savings national bank or Federal savings association designated as a ‘‘member,’’ a association from entering into TEF payment systems.62 OTS precedent also permits Federal savings associations to ‘‘participant,’’ or other similar role by a projects involving detached single- payment system, including by a family residences, multi-family payment system that requires the residences, or non-utility-scale 62 See, e.g., OCC Conditional Approval Letter No. 220 (Dec. 2, 1996); OCC Interpretive Letter No. 993 commercial buildings. As is the case (May 16, 1997); OCC Interpretive Letter No. 1140 63 See, e.g., 12 CFR 145.17; OTS Op. Ch. Couns. with loans and leases, the legal (Jan. 13, 2014); OCC Interpretive Letter No. 1157 (Sept. 15, 1995); OTS Op. Ch. Couns. (Dec. 22, permissibility of a TEF transaction is (Nov. 12, 2017). 1995).

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national bank or Federal savings the payment system. The OCC pointed excluded derivatives clearing association to share in operational to examples listed in OCC Interpretive organizations registered under the losses or maintain a reserve with the Letter 1140 65 and requested comment Commodity Exchange Act 67 and payment system to offset potential on whether these examples should be clearing agencies registered under the liability for operational losses. The OCC included in the definition of Securities Exchange Act of 1934,68 and received one comment that indirect ‘‘operational loss.’’ The OCC also asked foreign organizations that would be members of payment systems should whether other examples should be considered a derivatives clearing not be included in the definition of included in that list. One commenter organization or clearing agency were it ‘‘member’’ unless they are bound by the supported including the examples in the operating in the United States.69 This rules of the payment system and such text of the regulation and recommended definition therefore includes payment rules, including any open-ended adding cybersecurity breaches. A systems that operate either in the U.S. liabilities imposed, purport to extend to second comment letter also supported or in a foreign jurisdiction. The OCC such indirect members. The OCC agrees adding cybersecurity breaches but did requested comment on whether this with this commenter that it would be not believe the list of examples should definition appropriately encompasses appropriate to include indirect members be included in the definition of both foreign and domestic payment only in these specific circumstances ‘‘operational loss’’ in the regulatory text. systems that national banks and Federal and, thus, is amending the definition of The OCC believes that adding the non- savings associations may join. One ‘‘member’’ in the final rule to reflect this exhaustive list of examples to the body commenter requested that the OCC comment. of the regulation will provide greater provide guidance for banks and savings Third, the OCC defined ‘‘open-ended clarity. The OCC also agrees that it is liability’’ as liability for operational associations applying this definition to appropriate to add cybersecurity international clearing organizations or losses that is not capped under the rules breaches to the list. Thus, the final rule of the payment system and includes agencies that may not meet the technical defines operational loss to mean a requirements necessary to register under indemnifications provided to third charge resulting from sources other than the Commodity Exchange Act or parties as a condition of membership in defaults by other members of the Securities Exchange Act of 1934. The the payment system. For example, as a payment system. The final rule also OCC notes that the carve-out for clearing condition of membership in particular adds examples of these operational organizations and clearing agencies payment systems, national banks and losses. This nonexclusive list cites reflects that OCC precedent Federal savings associations may losses due to: employee misconduct, distinguishes between companies and provide open-ended indemnifications to fraud, misjudgment, or human error; Federal Reserve Banks that act as organizations performing payments, management failure; information 70 service providers for the payment systems failures; disruptions from clearing, and settlement functions. 64 systems. This definition is consistent internal or external events that result in While the proposed rule would codify with the definition of open-ended the degradation or failure of services OCC precedent related to payment liability in OCC Interpretive Letter 1140. provided by the payment system; system memberships, it would not affect The OCC received one comment on security breaches or cybersecurity OCC precedent applicable to this definition expressing concern that it events; or payment or settlement delays, memberships in clearing and settlement did not clearly include a situation in constrained liquidity, contagious organizations. For example, a national which the indemnification giving rise to disruptions, and resulting litigation. bank or Federal savings association an open-ended liability is imposed Finally, the OCC defined ‘‘payment wishing to join a foreign organization directly upon the participant by the system’’ in § 7.1026 to mean a ‘‘financial subject to OCC Interpretive Letter Nos. Federal Reserve Bank, which is acting as market utility’’ as defined in 12 U.S.C. 929 or 1102 would continue to follow a service provider to payment system 5462(6), wherever operating, and that the process outlined in that precedent participants. The OCC agrees with this includes both retail and wholesale rather than the process outlined in commenter that the participant would payment systems. Section 5462(6) § 7.1026. The OCC believes this is be exposed to open-ended liability in provides that ‘‘a financial market sufficiently clear in the proposed rule that case and is modifying the definition utility’’ means ‘‘any person that of ‘‘open-ended liability’’ to reflect the manages or operates a multilateral controlled by such entities, provided that the situation described by the commenter. system for the purpose of transferring, exclusions in this clause apply only with respect to As a result, open-ended liability in the the activities that require the entity to be so clearing, or settling payments, final rule means liability for operational registered’’ nor ‘‘any broker, dealer, transfer agent, securities, or other financial or investment company, or any futures commission losses that is not capped under the rules transactions among financial merchant, introducing broker, commodity trading of the payment system, and includes institutions or between financial advisor, or commodity pool operator, solely by indemnifications of third parties reason of functions performed by such institution institutions and the person’’ with provided as a condition of membership as part of brokerage, dealing, transfer agency, or certain exclusions.66 This definition investment company activities, or solely by reason in the payment system. of acting on behalf of a financial market utility or Fourth, although memberships in 65 OCC Interpretive Letter No. 1140 (Jan. 13, a participant therein in connection with the payment systems expose national banks 2014). furnishing by the financial market utility of services to its participants or the use of services of the and Federal savings associations to a 66 Financial market utility ‘‘does not include: financial market utility by its participants, provided designated contract markets, registered futures variety of risks, OCC legal precedent that services performed by such institution do not associations, swap data repositories, and swap only has addressed whether a national constitute critical risk management or processing execution facilities registered under the Commodity functions of the financial market utility.’’ 12 U.S.C. bank may assume open-ended liability Exchange Act, or national securities exchanges, 5462(6)(B). for operational losses at the payment national securities associations, alternative trading 67 system. The OCC defined ‘‘operational systems, security-based swap data repositories, and 7 U.S.C. 1 et seq. 68 loss’’ as a charge resulting from sources swap execution facilities registered under the 15 U.S.C. 78a et seq. Securities Exchange Act of 1934, solely by reason 69 The OCC maintains separate precedent relevant other than defaults by other members of of their providing facilities for comparison of data to memberships in these organizations. See, e.g., respecting the terms of settlement of securities or OCC Interpretive Letter No. 929 (Feb. 11, 2002); 64 OCC Interpretive Letter No. 1157 (Nov. 12, futures transactions effected on such exchange or by OCC Interpretive Letter No. 1102 (Oct. 14, 2008). 2017). means of any electronic system operated or 70 Id.

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and, therefore, finalizes this definition notification requirements in proposed proposed § 7.1026(e) required the as proposed. § 7.1026(e)(2) and (3) after joining the national bank or Federal savings Notice requirements. Proposed system. For after-the-fact notices association to (1) identify and evaluate § 7.1026(c) required a national bank or pursuant to paragraph (c)(2), the the risks posed by membership in the Federal savings association to provide proposed rule required a national bank payment system, taking into account written notice to the appropriate OCC or Federal savings association to include whether the liability of the bank or supervisory office at least 30 days prior a representation that either the rules of savings association is limited, and (2) to joining a payment system that would the payment system do not impose measure, monitor, and control those expose it to open-ended liability. If the liability for operational losses on risks. The preamble to the proposal payment system does not expose the members or that the national bank’s or explained that national banks and national bank or Federal savings Federal savings association’s liability for Federal savings associations should association to open-ended liability, the operational losses is limited by the rules review the standards outlined in OCC proposed rule required the national of the payment system to specific and Interpretive Letter 1140 and OCC bank or Federal savings association to appropriate limits that do not exceed Banking Circular 235 to assist with the provide after-the-fact written notice the lower of the legal lending limit requirements in paragraph (e). The within 30 days of joining a payment specified by 12 CFR part 32 or a limit proposal also required a national bank system. The OCC believes membership established for the national bank or or Federal savings association to notify in a payment system that exposes Federal savings association by the OCC. the appropriate OCC supervisory office members to open-ended liability creates One comment letter noted that the if its ongoing risk management additional risks for national banks and proposed notice requires that national identifies a safety and soundness Federal savings associations. Thus, the banks and Federal saving associations concern, such as a material change to OCC believes prior notice to the OCC is complete their risk assessment of the the bank’s or savings association’s appropriate in these situations.71 payment system before joining. liability or indemnification One comment letter supported this However, this commenter explained responsibilities, as soon as that concern process. A second commenter, however, that some aspects of a national bank’s or is identified and to take appropriate argued that the proposal may make it Federal savings association’s risk actions to remediate the risk. The OCC more difficult for a national bank or management processes may occur after received several comments related to Federal savings association to join a joining. Specifically, the commenter this section. new payment system because it would cited integration with a payment First, several commenters responded impose an additional regulatory burden system’s IT functions. The OCC favorably to the OCC’s question about not required for non-OCC regulated recognizes that full access to the whether the characteristics from institutions. The OCC does not agree payment system’s IT infrastructure may Interpretive Letter 1140 should be with this commenter. As explained be necessary to analyze fully its included in the final rule. In above and in the preamble to the potential risks. However, the OCC still Interpretive Letter 1140, the OCC proposed rule, the notice requirement expects banks and savings associations identified key components of a payment for payment system memberships to identify in advance these limitations. system that appropriately mitigates risk codifies existing requirements from a Thus, the OCC is finalizing paragraph and indicated it would expect a national series of interpretive letters governing (d) as proposed, with a minor change in bank to consider these characteristics national bank payment system wording of the section heading in when analyzing the payment system. memberships. Since the publication of The OCC also explained in Interpretive paragraph (d)(2). these interpretive letters, OCC-regulated Letter 1140 the characteristics of an Safety and soundness procedures. institutions have continued to join new effective risk management program at a The OCC relies upon a number of payment systems. The OCC believes that national bank. These commenters resources to communicate in detail its this clarity facilitates payment systems thought doing so would provide greater safety and soundness guidance for memberships by OCC-regulated certainty about the OCC’s expectations. national bank and Federal savings institutions rather than hindering them Although not an exhaustive list, the association memberships in payment and therefore the OCC adopts paragraph OCC agrees that listing the risk systems.72 At a minimum, the OCC (c) as proposed. management program criteria from Content of notice. Proposed believes a national bank or Federal Interpretive Letter 1140 in the § 7.1026(d) provided that all notices savings association must be able to regulatory text would assist banks and filed under § 7.1026(c) must include identify, evaluate, and control its risks savings associations as they conduct representations that the national bank or from membership in a particular reviews of payment system payment system before joining the Federal savings association has 73 memberships. The OCC is including in complied with the safety and soundness system and on an ongoing basis. As a the final rule a new paragraph (f) that review required by proposed prerequisite to joining a payment system recites the criteria it previously outlined § 7.1026(e)(1) before joining the and on a continual basis after joining, in Interpretive Letter 1140. One commenter also asked the OCC to payment system and will comply with 72 See, e.g., FFIEC IT Examination Handbook on provide additional guidance about the safety and soundness review and the Retail Payment Systems (Apr. 2016); FFIEC IT Examination Handbook on Wholesale Payment which of these criteria are most 71 The proposed notice requirement would not Systems (July 2004); Comptroller’s Handbook: important and the circumstances under apply to existing payment system memberships. Payment Systems and Funds Transfer Activities which each component should be However, as explained below, the proposed rule (March 1990); OCC Banking Circular 235 (May 10, considered in the analysis of a bank or required national banks and Federal savings 1989). associations to continuously inform the OCC of 73 For example, OCC Banking Circular 235 states savings association. The OCC does not changes to bank or savings association operations ‘‘Management of each national bank is responsible believe it would be appropriate to that would affect the institution’s risk profile. Thus, for assessing risk in each payment, clearing, and identify further individual scenarios in the OCC would be made aware of any payment settlement system in which the bank participates. which specific factors would apply system membership at a bank or savings association Management must adopt adequate policies, even though the specific timing and information procedures, and controls with respect to these because national banks and Federal required by this proposed rule would not apply to activities.’’ The OCC applied this Banking Circular savings associations are best positioned existing payment systems memberships. to Federal savings associations on Oct. 1, 2014. to evaluate the applicability and

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importance of each factor given the prior to joining the payment system. conduct the appropriate safety and wide variety of global payment systems That legal opinion must describe how soundness analysis and provide the as well as the varied complexity of and the payment system allocates liability appropriate OCC supervisory office with risk tolerances at individual banks and for operational losses and conclude the the 30-day prior notice required by savings associations. The OCC expects potential liability for the national bank § 7.1026(c)(1). As the OCC explained in banks and savings associations to or Federal savings association is limited the preamble to the proposed rule, a review the standards and identify the to specific and appropriate limits that national bank or Federal savings components that are applicable to the do not exceed the legal lending limit association that obtains a legal opinion payment system and financial specified by 12 CFR part 32 or a lower may consider its open-ended liability to institution at issue. Thus, the OCC is not limit established for the national bank be limited so long as there were no including this information in the final or Federal savings association by the material changes to the liability or rule. OCC. This legal opinion would enable indemnification requirements of the Finally, a commenter asked that the OCC to verify that the liability of the national bank or Federal savings where the open-ended liability derives national bank or Federal savings association after the bank or savings from a Federal Reserve Bank acting as association is limited even though the association joined the payment system. a service provider to the payment rules of the payment system do not If there is a material change, the system participant, the OCC clarify that provide any limits. national bank or Federal savings due diligence and risk management Two commenters objected to the association may no longer rely on that activities should be related to the entity independent legal opinion requirement. written legal opinion to demonstrate providing the service for which the These commenters argued that the OCC that its liability is limited and must indemnity or open-ended liability is should instead require national banks notify the appropriate OCC supervisory imposed. The OCC agrees that national and Federal savings associations to office and remediate its risks as banks and Federal savings associations follow a lower standard and provide just described in § 7.1026(e)(3). should evaluate the risks that derive a reasonable basis for concluding that its One commenter asked for clarification from all aspects of the payment system liability is limited. These commenters that, once a bank or savings association membership, including the risks from also suggested that an opinion from in- has joined a payment system and service providers to whom the payment house counsel should suffice. The OCC obtained a legal opinion, it does not system member must indemnify or does not agree that lowering the need to undertake that process again provide open-ended liability as a unless there is a material change to the condition of membership. However, the standard would be appropriate. liability or indemnification provisions OCC expects the due diligence and risk However, the OCC believes it is applicable to the bank or savings management analysis to apply whether important to make clear that the legal association. The OCC intended this the payment system membership opinion is not required to join any result and, thus, is modifying the final introduces open-ended liability or not. payment system; it is only required for rule to clarify that, so long as there are The OCC believes that the language in the bank or savings association to treat paragraph (e) of the proposal is its liability as limited when the payment no material changes to the liability or sufficiently clear and is adopting this systems rules indicate open-ended indemnification requirements section as proposed. liability. The OCC, however, is applicable to the bank or savings The OCC noted in the preamble to the persuaded by the commenters’ view that association since the issuance of the proposed rule that a national bank’s or an in-house legal opinion is sufficient. written legal opinion, the bank or Federal savings association’s liability Thus, the OCC is amending the final savings association may consider its will vary from payment system to rule to remove the requirement that the open-ended liability to be limited. payment system. The rules of some legal opinion be independent of the Establishment and Operation of a payment systems may expose members bank or savings association. The final Remote Service Unit by a National Bank to open-ended liability for operational rule does, however, specifically provide (New § 7.1027/Former § 7.4003) losses but, in reality, the national bank’s for a written opinion. Even with this or Federal savings association’s liability change, the OCC expects that this option Section 7.4003 provides that a may be capped in some other way. For will be exercised rarely. In fact, the OCC national bank can establish and operate example, a jurisdiction could have a law believes that this option will be a remote service unit (RSU) pursuant to that prohibits open-ended liability or available only in unusual 12 U.S.C. 24(Seventh). This section also restricts the amount of liability to the circumstances, typically for a payment states that an RSU does not constitute a assets of the entity located in that system that operates in a foreign branch under 12 U.S.C. 36(j) and is not jurisdiction. If that law applies to the jurisdiction where the laws of that subject to State geographic or payment system, it could effectively cap jurisdiction effectively limit the liability operational restrictions or licensing a member’s operational liability. In of the national bank or Federal savings laws. Section 7.4003 defines an RSU as other situations, a member may association. The OCC is offering the an automated facility, operated by a negotiate a separate agreement with a written legal opinion as an additional customer of a bank, that conducts payment system that allows the member option for institutions wishing to join a banking functions, such as receiving to limit its potential liability and, as a payment system in which the rules do deposits, paying withdrawals, or result, the risks of membership in that not limit the liability of members, but lending money. This section provides payment system. In recognition of these the national bank or Federal savings examples of an RSU, specifically listing situations, the proposed rule permitted association believes another factor an automated teller machine (ATM), a national bank or Federal savings effectively limits its potential liability. If automated loan machine, automated association to consider its open-ended a payment system’s rules impose open- device for receiving deposits, personal liability to a particular payment system ended liability, national banks and computer, telephone, and other similar to be limited for purposes of the review Federal savings associations still may electronic devices. Finally, this section required by proposed § 7.1026(e)(1) and join the payment system even if they do provides that an RSU may be equipped (2) if the bank or savings association not elect—or are unable to obtain—a with a telephone or tele-video device obtains an independent legal opinion written legal opinion provided that they that allows contact with bank personnel.

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The OCC proposed to amend § 7.4003 within the definition of an RSU and to the National Bank Act. Accordingly, to expand the definition of an RSU to thus are exempted from the 12 U.S.C. 36 the OCC adopts these changes as include either an automated or branching restrictions. proposed. unstaffed facility and to add drop boxes Interpreting 12 U.S.C. 36(j) in a way to the list of RSU examples. Although that defines ATMs and RSUs in a Establishment and Operation of a the OCC has historically treated drop distinct manner is a better reading of the Deposit Production Office by a National boxes as branches, the OCC believes that plain language of 12 U.S.C. 36(j) and Bank (New § 7.1028/Former § 7.4004) leads to the logical conclusion that non- interpreting both the terms ATM and Section 7.4004 provides that a automated, unstaffed facilities such as RSU to require automation leads to national bank or its operating subsidiary drop boxes should be included in the incongruous results where a non- may engage in deposit production automated facility such as a drop box is definition of RSU. Specifically, activities at a site other than the main considered a branch but an automated interpreting ‘‘automated teller machine’’ office or a branch of the bank, and facility such as an ATM is not, despite and ‘‘remote service unit’’ to be further provides that a deposit a drop box functioning less like a full synonymous (i.e., automated, unstaffed production office (DPO) may solicit branch than an ATM. The OCC also facilities) would construe two different proposed to move § 7.4003 to subpart A phrases to have the same meaning and deposits, provide information about of part 7 as new § 7.1027 so that it renders the second phrase useless. deposit products, and assist persons in would be in the same subpart as other Congress included the term completing application forms and branching provisions of part 7. ‘‘automated’’ in the phrase ‘‘automated related documents to open a deposit The OCC received one comment on teller machine’’ but did not include the account. Section 7.4004 specifically the proposed amendments to § 7.4003. term ‘‘automated’’ in the phrase ‘‘remote states that a DPO is not a branch so long The commenter opposes the changes to service unit,’’ suggesting that Congress as the site does not receive deposits, pay § 7.4003 and states that excluding drop did not necessarily intend for the term withdrawals, or make loans. It further boxes from the definition of branch by ‘‘remote service unit’’ to only apply to states that all deposit and withdrawal including them in the definition of RSU automated facilities. Though the OCC transactions of a bank customer using a is inconsistent with Supreme Court has historically treated drop boxes as DPO must be performed by the precedent. The commenter states that branches based on the fact that drop customer, either in person at the main the change is inconsistent with OCC boxes are not automated, the agency is office or a branch office of the bank or precedent and the OCC does not have now adopting a new position based on by mail, electronic transfer, or a similar the authority to include drop boxes and a reading of the plain language of the method of transfer. Finally, this section other unstaffed facilities within the statute that avoids rendering statutory states that a national bank may use the RSU/ATM exclusion. The commenter language superfluous and producing services of, and compensate, persons also states that when Congress amended illogical results whereby drop boxes are not employed by the bank in its deposit 12 U.S.C. 36(j) to exclude ATMs and considered branches despite having less production activities. As with § 7.4003, RSUs from the definition of branch, it branch-like functionality than ATMs. the OCC proposed to move § 7.4004 to chose to only exclude automated The OCC also disagrees with the subpart A of part 7 as new § 7.1028 to facilities and purposefully chose not to commenter’s statement that the place it in the same subpart as other exclude drop boxes or other unstaffed proposed amendments to § 7.4003 interpretations regarding branching and facilities that lack automation. Finally, constitute a ‘‘preemption non-branching functions. This change the commenter states that regardless of determination’’ under the National Bank improves the organization of part 7. The where the RSU regulations are placed, Act. Case law is clear that it is Federal OCC proposed no other changes to this to the extent that the OCC maintains law, not State law, that determines what section except for a non-substantive that State operational and licensing is considered a ‘‘branch’’ of a national change to its wording. The OCC restrictions are preempted with respect bank for the purposes of 12 U.S.C. received no comments on new § 7.1028 to non-branch offices, then, in 36(j).75 The OCC is merely clarifying and adopts it as proposed. expanding the scope of permissible non- how it interprets the ambiguous branch office activities, the OCC is language in 12 U.S.C. 36(j). As noted Combination of National Bank Loan making a ‘‘preemption determination’’ above, Congress did not define Production Office, Deposit Production under the National Bank Act that must ‘‘automated teller machine’’ or ‘‘remote Office, and Remote Service Unit (New comply with the procedural and service unit’’ in 12 U.S.C. 36(j), so the § 7.1029/Former § 7.4005) substantive requirements applicable to OCC must interpret these phrases to Section 7.4005 provides that a such determinations. 76 resolve this silence. This is not a location at which a national bank These comments misunderstand the ‘‘preemption determination’’ pursuant interaction between judicial precedent operates a loan production office (LPO), a DPO, and an RSU is not a ‘‘branch’’ and the insertion of the term ‘‘remote 75 See First National Bank in Plant City, Florida service unit’’ into 12 U.S.C. 36(j) and v. Dickinson, 396 U.S. 122, 133–34 (1969) (rejecting within the meaning of 12 U.S.C. 36(j) by ignore the plain language of 12 U.S.C. the contention by amicus curiae National virtue of that combination of operations 36(j). The Supreme Court decision in Association of Supervisors of State Banks that State because none of these locations law definitions of what constitutes ‘‘branch individually constitutes a branch. The First National Bank in Plant City, banking’’ must control the content of the Federal Florida v. Dickinson, 396 U.S. 122 definition of ‘‘branch.’’). OCC proposed to add language (1969) (Plant City), which held that a 76 See Chevron U.S.A., Inc. v. Nat. Res. Def. regarding the extent of the permissible drop box constituted a branch, was Council, Inc., 467 U.S. 837, 843 (1984) (‘‘[I]f the interaction between bank personnel and statute is silent or ambiguous with respect to the the RSU at a facility that combines an decided before Congress amended 12 specific issue, the question for the court is whether U.S.C. 36(j) to exclude RSUs and ATMs the agency’s answer is based on a permissible LPO or a deposit production office with from the definition of branch.74 construction of the statute.’’); see also Robinson v. an RSU. Specifically, the OCC proposed Therefore, the Plant City decision did Shell Oil Co., 519 U.S. 337, 341 (1997) (‘‘The to add language that provides that an not address whether drop boxes fit plainness or ambiguity of statutory language is RSU at a combined location must be determined by reference to the language itself, the primarily operated by the customer with specific context in which that language is used, and 74 EGRPRA, Section 2204 (1996). the broader context of the statute as a whole.’’). at most delimited assistance from bank

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personnel.77 The OCC also proposed to derivatives interpretive letters. The a customer-driven transaction does not move § 7.4005 to subpart A of part 7, as proposed rule also defined certain terms include ‘‘a transaction the principal new § 7.1029. The OCC received no for the first time to promote purpose of which is to deliver to a comments on these changes and adopts transparency and consistency among national bank assets that the national them as proposed. institutions. For the reasons described bank could not invest in directly’’ does below, the OCC is adopting these not prohibit physically settled Permissible Derivatives Activities for definitions as proposed. derivatives. National Banks (New § 7.1030) • Customer-driven. The proposed rule The OCC intended the proposed The proposal included a new § 7.1030 defined ‘‘customer-driven’’ to mean a definition to reflect the term ‘‘customer- addressing derivatives activities transaction entered into for a customer’s driven’’ as it has been used in prior OCC permissible for national banks.78 This valid and independent business interpretations, and the OCC does not new section incorporated and purpose. As explained in the preamble believe any changes to the definition are streamlined the framework in OCC to the proposed rule,80 this approach is necessary in response to the commenter. interpretive letters discussing bank- consistent with the definition used in First, the definition does not prohibit permissible derivatives activities.79 The OCC interpretive letters.81 The preamble customer-driven mirror trades through proposed rule addressed five functional explained that this focus on the affiliates as described in Interpretive categories of permissible derivatives customer recognizes that a number of Letter 1018.83 National banks should be activities: (1) Derivatives referencing derivatives activities are permissible for aware that these activities are subject to underlyings a national bank may a national bank because the bank is sections 23A and 23B of the Federal purchase directly as an investment; (2) acting as a financial intermediary for the Reserve Act and 12 CFR part 32.84 derivatives with any underlying to customer. A customer-driven Second, the OCC does not believe any hedge the risks arising from bank- transaction would not include a changes to the definition of ‘‘customer- permissible activities; (3) derivatives transaction entered into for the purpose driven’’ are necessary to confirm that a with any underlying that are customer- of speculating in derivative, currency, national bank, rather than its customer, driven, cash-settled and either perfectly- commodity, or security prices.82 may not have a speculative purpose. matched or portfolio-hedged; (4) Similarly, a customer-driven transaction The proposed definition applies to a derivatives with any underlying that are would not include a transaction the transaction entered into for a customer’s customer-driven and physically-settled principal purpose of which is to deliver ‘‘valid and independent business by transitory title transfer; and (5) to a national bank assets that the purpose.’’ The OCC recognizes that bank derivatives with any underlying that are national bank could not invest in customers’ valid and independent customer-driven, physically-settled directly. business purposes may include the (other than by transitory title transfer), The OCC received one comment on customer obtaining directional exposure and physically-hedged. The OCC is this proposed definition. The to an underlying, for example, as part of adopting § 7.1030 with the substantive commenter said that the final rule the customer’s investment strategy.85 and technical changes described below. should clarify that ‘‘customer-driven’’ The requirement that a transaction be Authority. Under the proposal, derivatives activities continue to ‘‘customer-driven’’ applies only to the paragraph (a) of new § 7.1030 specified include the types of permissible national bank; it does not apply to the that the section is issued pursuant to 12 derivatives transactions described in bank’s customer. Therefore, the OCC U.S.C. 24(Seventh). Paragraph (a) Interpretive Letter 1018. The commenter does not believe that any changes to the further specified that a national bank also said the final rule should make definition of ‘‘customer-driven’’ are may only engage in derivatives clear that, while speculation cannot be necessary to confirm that the rule does transactions in accordance with the the purpose for which the national bank not limit a national bank’s customer’s requirements of this section. The OCC enters into the transaction, no such valid and independent business did not receive any comments on this limitation is imposed as to the purpose purpose. paragraph and is adopting paragraph (a) for which the customer enters into the Third, the OCC declines to adopt the as proposed. transaction and that the OCC should commenter’s proposed interpretation Definitions. In paragraph (b), the confirm that an otherwise bank- that a derivative transaction entered into proposed rule incorporated several permissible derivative transaction by a national bank as a financial terms that are commonly used in OCC entered into by a national bank as a intermediary would be viewed as financial intermediary would be viewed ‘‘customer-driven,’’ so long as the 77 This language is based on published OCC as ‘‘customer-driven,’’ so long as the national bank and its customer have precedent. See OCC Interpretive Letter No. 1165 national bank and its customer have bilaterally negotiated and agreed to the (June 28, 2019). bilaterally negotiated and agreed to the terms of the transaction, regardless of 78 Permissible financial derivatives transactions for Federal savings associations are addressed terms of the transaction, regardless of the execution mechanism selected by separately in 12 CFR 163.172. the execution mechanism selected by the bank and its customer. A national 79 OCC legal interpretations have confirmed the bank and its customer. Finally, the bank may use both over-the-counter certain derivatives activities are permissible for commenter said that the limitation in trades or trading platforms to execute national banks under 12 U.S.C. 24(Seventh). the proposed definition specifying that Congress has recognized national banks’ authority to engage in derivatives activities in various 83 Interpretive Letter 1018 specified that the bank statutes. See, e.g., 12 U.S.C. 84 (incorporating credit 80 85 FR 40794, at 40804. would only mirror derivative transactions with exposure from derivatives into the legal lending 81 E.g., OCC Interpretive Letter No. 1160 (Aug. 22, subsidiaries and affiliates that are customer-driven limit); Gramm-Leach-Bliley Act, Public Law 106– 2018). and bank permissible. OCC Interpretive Letter No. 102, 113 Stat. 1338, section 206(a)(6) (defining 82 OCC interpretations have specified that 1018 (Feb. 10, 2005). ‘‘identified banking product’’ to include any swap customer-driven derivatives transactions do not 84 See also Margin and Capital Requirements for agreement except an equity swap with a retail include transactions entered into by the bank for Covered Swap Entities, 85 FR 39754, at 39764 (July customer); 12 U.S.C. 371c (defining ‘‘covered the purpose of speculating in the underlying 1, 2020) (discussing the views of the Board of transaction’’ between a bank and its affiliates to commodity or security prices. See e.g., OCC Governors of the Federal Reserve System (Federal include a derivative transaction); Dodd-Frank Act Interpretive Letter No. 1033 (Jun. 14, 2005); OCC Reserve Board) on the application of sections 23A section 716 (15 U.S.C. 8305); Dodd-Frank Act Interpretive Letter No. 892 (Sept. 13, 2000); OCC and 23B to swaps between a bank and its affiliate). section 731 (7 U.S.C. 6s); Dodd-Frank Act section Interpretive Letter No. 684 (Aug. 4, 1995); OCC No- 85 See, e.g., OCC Interpretive Letter No. 1090 (Oct. 764 (15 U.S.C. 78o–10). Objection Letter 90–1 (Feb. 16, 1990). 25, 2007).

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customer-driven transactions. However, so as to offset the market risk of such risks resulting from the offsetting the fact that a trade is bilaterally transactions, may not fall within either derivatives transactions. negotiated does not, on its own, mean technical definition, and thus would not The commenter also proposed that the that the trade is customer-driven (i.e., is be bank-permissible. This commenter OCC adopt a unified term such as entered into for a customer’s valid and further argued that, if the final rule ‘‘appropriately hedged’’ in lieu of independent business purpose and does maintains the distinction between ‘‘perfectly-matched’’ and ‘‘portfolio- not have the principal purpose of ‘‘perfectly-matched’’ and ‘‘portfolio- hedged.’’ The commenter suggested that delivering to a national bank assets that hedged,’’ it should expressly confirm such a definition should permit the national bank could not invest in that any derivative transaction the risks ‘‘appropriate and effective’’ hedging but directly). For example, a bilaterally of which are appropriately offset, does not specifically propose how this negotiated transaction between a whatever the technique, will fall under term should be defined. The definitions national bank and a third party that, one of these two definitions. The ‘‘perfectly-matched’’ and ‘‘portfolio- under the facts and circumstances, has commenter argued that, if a permissible hedged’’ encompass the methods of the purpose of giving the national bank hedging technique does not fall within hedging a national bank’s market risk speculative exposure to underlying the definition of ‘‘perfectly-matched,’’ arising from permissible derivatives commodity or security prices would not then it should be assumed to fall within financial intermediation activities— be considered customer-driven under the definition of ‘‘portfolio-hedged.’’ whether at the individual transaction this definition. level through back-to-back transactions Finally, the OCC confirms that the The OCC disagrees with the or at the level of net risks within a language in the definition of ‘‘customer- commenter’s view that these definitions derivatives portfolio. The OCC believes driven’’ stating that the principal are unnecessary and that they create that incorporating and defining these purpose of the transaction cannot be to ambiguity. OCC interpretations have longstanding hedging approaches deliver to a national bank assets that the long used the terms ‘‘portfolio-hedged’’ reflecting the OCC’s interpretive letters national bank could not invest in and ‘‘perfectly-matched’’ in analyzing will not cast doubt on the permissibility directly does not preclude a bank from the permissibility of national bank of currently-recognized national bank engaging in permissible physically- derivatives activities, and the derivatives activities; furthermore, it settled derivatives activities. Paragraphs distinction between these two activities reflects the OCC’s established (c)(4) and (5) of the final rule explicitly is well-established and useful to the expectation that, for derivatives permit national banks to engage in OCC’s supervisory activities. The activities relying on portfolio hedging customer-driven physically-settled commenter describes certain types of for their permissibility, the national derivatives financial intermediation transactions that they believe may not bank should have the appropriate transactions. For the foregoing reasons, fall into the definition of either hedging skills and sophistication to the OCC is adopting the definition of perfectly-matched or portfolio-hedged, manage the net risks of its derivatives ‘‘customer-driven’’ as proposed. such as using two or more derivatives to portfolio. Accordingly, the final rule • Perfectly-matched. The proposal hedge a single customer transaction.87 retains the definitions for ‘‘perfectly- included a definition of ‘‘perfectly- The OCC agrees these transactions matched’’ and ‘‘portfolio-hedged’’ as matched’’ that was substantially similar generally would not fall into the proposed. to prior OCC interpretive letters. definition of perfectly-matched, as OCC The commenter further said that, if Specifically, the proposal defined interpretive letters have used this the distinction between perfectly- perfectly-matched to mean two back-to- definition consistently to describe matched and portfolio hedged is back derivative transactions that offset mirror transactions with matching retained, the definition of ‘‘perfectly- risk with respect to all economic terms economic terms. Customer-driven matched’’ should be revised to treat (e.g., amount, maturity, duration, and intermediation transactions that are not corresponding transactions as perfectly- underlying). The preamble to the perfectly-matched are still permissible if matched hedges so long as they proposal specified that, consistent with they are conducted as part of a portfolio- substantially offset risk with respect to OCC interpretive letters, this definition hedged derivatives program. As all material terms, so as to make clear would allow transactions to be described further below, national banks that differences between the transaction considered ‘‘perfectly-matched’’ despite may permissibly conduct such with little or no effect on market risk a difference in price between two transactions as part of a portfolio- (e.g., different maturity dates between derivatives when that difference reflects hedged derivatives program if the the customer derivative and the the bank’s intermediation fee (in the portfolio of transactions is hedged based offsetting future, or different margin form of a spread).86 on net unmatched positions or arrangements) do not bar the The OCC received one comment on exposures in the portfolio. In response transactions from being treated as this proposed definition. First, this to the commenter’s example of hedging perfectly-matched.88 The OCC disagrees commenter said the OCC should adopt a single derivative with multiple with this proposed interpretation. OCC a broader concept of ‘‘appropriately offsetting derivatives, the OCC confirms precedents have long defined perfectly- hedged’’ rather than distinguishing that a national bank would not be matched transactions as transactions between the definitions of ‘‘perfectly- precluded from managing derivatives that offset risk with respect to all matched’’ and ‘‘portfolio-hedged,’’ within a portfolio-hedged program on economic terms (e.g., amount, maturity, which the commenter viewed as such a basis. The transactions may be duration, and underlying). The OCC has unnecessary. This commenter argued permissible as portfolio-hedged described a perfectly-matched that a bifurcated definitional approach derivatives transactions as long as the could potentially create ambiguity as to bank appropriately hedges net residual 88 The commenter also discussed physically- whether there may be certain types of hedged transactions that are hedged on a derivative transactions that, while transaction-by-transaction basis. This example is 87 The commenter also raised the example of discussed below in relation to the permitted appropriately hedged in some manner hedging an equity derivative by holding physical physical hedging activities under § 7.1030(c)(5). As equity positions. This example is discussed below discussed below, such transactions are not 86 OCC Interpretive Letter No. 1110 (Jan. 30, in the section addressing physical hedging considered perfectly-matched under the final rule 2009). activities. but are addressed in § 7.1030(c)(5).

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transaction as one that does not expose hedging’’ and ‘‘physically-hedged’’ to reference asset, rate, obligation, or index the national bank to price risk mean holding title to or acquiring on which the payment obligation(s) associated with the underlying so that ownership of an asset (for example, by between counterparties to a derivatives the main risk to the bank is credit risk.89 warehouse receipt or book entry) to transaction is based. The OCC included Two transactions with different solely manage the risks arising out of ‘‘underlying’’ as a defined term because economic terms could expose the permissible customer-driven derivatives the notice requirement in paragraph national bank to other risks. For transactions. The OCC intended this 7.1030(d) is triggered when a national example, two transactions with different definition to be consistent with the bank expands its derivatives activities to maturity dates could expose the description of commodities physical include additional types of underlyings. national bank to price risk in the time hedging activities that the OCC has The OCC received one comment on this period between the two maturity dates. identified as permissible in prior definition. The commenter said the OCC Accordingly, the OCC is not expanding interpretive letters and in OCC Bulletin should clarify that the definition of the definition of ‘‘perfectly-matched’’ to 2015–35 (Aug. 4, 2015). Under the ‘‘underlying’’ should be construed incorporate such transactions. However, proposal, this definition also applies to broadly and flexibly over time, so as not as described above, such transactions physical hedging of customer-driven to inadvertently introduce ambiguity may be permissible as part of a derivatives referencing securities. The with respect to whether a particular portfolio-hedged derivatives program if OCC did not receive any comments on asset or quantitative measure may the national bank appropriately the definition of ‘‘physically-hedged’’ constitute an underlying of a manages net unmatched exposures in and is adopting the definition as permissible derivative transaction. the derivatives portfolio. proposed. However, the commenter did not • Portfolio-hedged. The proposal • Physical settlement or physically- provide examples of any particular asset included a definition of portfolio- settled. The proposal defined ‘‘physical or quantitative measure that would not hedged that was substantially similar to settlement’’ or ‘‘physically settled’’ to be encompassed within the proposed prior OCC interpretive letters. mean accepting title to or acquiring definition. The OCC does not believe Specifically, the OCC proposes to define ownership of an asset. The preamble to any changes to the definition of ‘‘portfolio-hedged’’ to mean that a the proposal explained that physical underlying are necessary to provide portfolio of derivatives transactions is settlement stands in contrast to cash- appropriate flexibility over time. The hedged based on net unmatched settled transactions, in which proposed definition encompasses any positions or exposures in the portfolio. counterparties do not exchange the ‘‘asset, rate, obligation, or index,’’ which The proposed definition refers to underlying assets. The preamble to the the OCC believes sufficiently unmatched ‘‘positions or exposures’’ to proposal also explained that physical encompasses the underlyings used by clarify that hedging on a portfolio basis settlement includes transitory title national banks as part of their may involve hedging based on various transfer, which is discussed below. The permissible derivatives financial risk exposures with different OCC did not receive any comments on intermediation activities, and that these instruments in accordance with the definition of ‘‘physical settlement’’ categories are in and of themselves applicable policies and procedures and or ‘‘physically-settled’’ and is adopting sufficiently flexible. Accordingly, the the definition as proposed. final rule adopts the definition of risk limits of the national bank. This • definition is consistent with OCC Transitory title transfer. The underlying as proposed. interpretations that have typically used proposal defined ‘‘transitory title The OCC requested comment on ‘‘portfolio-hedged’’ to describe the transfer’’ to mean a transaction that is whether the final rule should include a settled by accepting and immediately practice of hedging based on net definition of the term ‘‘derivative’’ and relinquishing title to an asset. The residual risk position in a portfolio of whether a definition of this term would proposal explained that this definition positions.90 The OCC has explained that be necessary to appropriately scope the is intended to be consistent with prior this method of hedging can reduce proposed provision and whether any OCC interpretive letters, which explain transactional costs and operational risks definition would be workable in that transitory title transfer is a means because fewer transactions need to be practice. The OCC received one of physical settlement in which a comment that did not support defining executed relative to the number of counterparty only briefly holds title to ‘‘derivative’’ in the final rule. This transactions executed under perfectly- the underlying asset.92 The preamble commenter said that there is no need for matched hedging (in which the national explained that, consistent with prior the rule to define ‘‘derivative,’’ as there bank must offset each transaction on an OCC interpretations, transitory title is generally a common understanding of individual basis).91 As described above, transfer does not entail a national bank the term, as reflected in existing a national bank would not be precluded taking physical possession of a precedent. The OCC agrees that there is from managing derivatives within a commodity.93 The OCC did not receive a common understanding of the term portfolio-hedged program on a more any comments on the definition of ‘‘derivative’’ and notes that prior OCC specific basis (for example, by managing transitory title transfer and is adopting interpretations generally have not the risk of a particular derivative the definition as proposed. defined the term. Accordingly, the final transaction by entering into two or more • Underlying. The proposal defined rule does not include a specific offsetting transactions). The OCC did the term ‘‘underlying’’ to mean the definition of the term ‘‘derivative.’’ The not receive any additional comments on OCC intends to implement the rule the definition of portfolio-hedged and is 92 See, e.g., OCC Interpretive Letter No. 962 (Apr. based on the common industry and adopting the definition as proposed. 21, 2003). supervisory understanding regarding the • Physical hedging or physically- 93 See, e.g., OCC Interpretive Letter No. 1073; type of transactions that constitute hedged. The proposal defined ‘‘physical OCC Interpretive Letter No. 1060; OCC Interpretive Letter No. 1025 (Apr. 25, 2005); OCC Interpretive derivatives. Letter No. 962; OCC Interpretive Letter No. 684. See Permissible Derivatives Activities 89 See, e.g., OCC Interpretive Letter No. 1060 also 81 FR 96353, at 96355 (Dec. 30, 2016) Generally. The proposal addressed five (Apr. 26, 2006). (explaining ‘‘transitory title transfer typically does 90 See e.g., OCC Interpretive Letter No. 1073 (Oct. not entail physical possession of a commodity; the categories of permissible derivatives 19, 2006); OCC Interpretive Letter No. 1060. ownership occurs solely to facilitate the underlying activities. For the reasons described 91 Id. transaction and lasts only for a moment in time.’’). below the final rule retains these five

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categories as proposed. These categories not receive any comments on this these letters have recognized that a are discussed below. section and is adopting it as proposed. national bank may engage in customer- • Derivatives Referencing • Derivatives Financial driven financial intermediation Underlyings in which a National Bank Intermediation for Customers. Sections derivatives activities that are physically- May Invest Directly. Section 7.1030(c)(1) 7.1030(c)(3) through (5) of the proposal settled (other than by transitory title of the proposed rule specified that a addressed derivatives financial transfer) and to physically hedge those national bank may engage in derivatives intermediation activities. These sections derivatives in certain circumstances.102 transactions with payments based on of the proposal were intended to reflect The OCC proposed to incorporate and underlyings that a national bank is the conclusions of OCC interpretive streamline the framework contained in permitted to purchase directly as an letters that have recognized that a its interpretive letters addressing investment. The OCC intended this national bank may act as a financial derivatives financial intermediation provision to reflect OCC interpretive intermediary in customer-driven 97 activities in paragraphs 7.1030(c)(3) letters that have recognized that derivatives transactions on a variety of through (5). These paragraphs are national banks may engage in reference assets as part of the business adopted largely as proposed but with derivatives activities where the of banking.98 These letters have the targeted changes discussed below. derivative references assets that a recognized national banks’ authority to The OCC received one comment national bank could purchase directly as enter into cash-settled, customer-driven addressing these sections. This an investment.94 The OCC did not derivatives transactions both on a commenter recommended revising receive any comments on paragraph perfectly-matched 99 and portfolio- § 7.1030(c) to allow national banks to (c)(1) and is adopting this paragraph as hedged basis.100 These letters have also physically hedge cash-settled proposed. As specified in the preamble recognized in this context the derivatives, in addition to physically- to the proposal, paragraph (c)(1) permissibility of physical settlement by settled derivatives. This commenter also addresses only derivatives on transitory title transfer.101 Additionally, said, to the extent the final rule underlyings that a national bank would continues to differentiate between cash- be permitted to purchase directly as fluctuations inherent in bank loan operations, U.S. and physically-settled trades, the final principal. For example, an underlying Treasury Bills, and certificates of deposit. These activities may be conducted under § 7.1030(c)(1) of rule should also confirm that, where a that a national bank could hold only as the final rule. national bank has a physically-settled a nonconforming investment under 12 97 A ‘‘customer-driven’’ transaction is one entered trade, the settlement of which it directs CFR part 1 or only in satisfaction of into for a customer’s valid and independent to an affiliate, the trade would be debts previously contracted would not business purposes. See, e.g., OCC Interpretive Letter deemed to be cash-settled. The final rule be a permissible underlying under this No. 1160; OCC Interpretive Letter No. 892. This definition is addressed in § 7.1030(b) of the rule. incorporates one change in response to paragraph. 98 this comment to clarify the rule’s • See, e.g., OCC Interpretive Letter No. 937 (Jun. Hedging Bank-Permissible 27, 2002); OCC Interpretive Letter No. 892; No- application to physical hedging Activities with Derivatives. Section Objection Letter 87–5 (Jul. 20, 1987). involving transactions other than 99 7.1030(c)(2) of the proposed rule See, e.g., OCC Interpretive Letter No. 1110 commodity derivatives. OCC provided that a national bank may (longevity indexes); OCC Interpretive Letter No. 1101 (Jul. 7, 2008) (certain risk indexes); OCC interpretive letters and guidance engage in derivatives transactions with Interpretive Letter No. 1089 (Oct. 15, 2007); addressing physical hedges of any underlying to hedge the risks (specific property indexes); OCC Interpretive Letter commodity derivatives are typically arising from bank-permissible activities No. 1081 (May 15, 2007) (specific property limited to hedges of physically-settled after providing notice to its EIC.95 The indexes); OCC Interpretive Letter No. 1079 (Apr. 19, 2007) (inflation indexes); OCC Interpretive Letter transactions.103 The OCC therefore preamble to the proposal explained that No. 1065 (Jul. 24, 2006) (petroleum products, disagrees with the commenter’s the OCC has recognized that a national agricultural oils, grains and grain derivatives, seeds, suggestion that OCC interpretations bank may hedge the risks of bank- fibers, foodstuffs, livestock/meat products, metals, generally permit physical hedging for permissible activities using derivatives wood products, plastics and fertilizer); OCC Interpretive Letter No. 1063 (Jun. 1, 2006) (hogs, on underlyings in which a national bank lean hogs, pork bellies, lumber, corrugated Letter No. 1025 (electricity); Interpretive Letter No. 96 may not invest directly. The OCC did cardboard, and polystyrene); OCC Interpretive 962 (electricity). The term ‘‘transitory title transfer’’ Letter No. 1059 (Apr. 13, 2006) (old corrugated means accepting and instantaneously relinquishing 94 See, e.g., OCC Interpretive Letter No. 494 (Dec. cardboard #11, polypropylene: injection molding title to the commodity, as a party in a ‘‘chain of 20, 1989); OCC Interpretive Letter No. 422 (Apr. 11, (copoly), polypropylene: All grades, Dow Jones AIG title’’ transfer. OCC Interpretive Letter No. 1025. 1988); OCC No Objection Letter No. 86–13 (Aug. 8, Commodity Index); OCC Interpretive Letter No. 102 See, e.g., OCC Interpretive Letter No. 1040; 1986). See also, ‘‘Report to Congress and the 1056 (Mar. 29, 2006) (frozen concentrate orange OCC Interpretive Letter No. 892; OCC Interpretive Financial Stability Oversight Council Pursuant to juice, polypropylene); OCC Interpretive Letter No. Letter No. 684. OCC interpretive letters have Section 620 of the Dodd-Frank Act’’ at 86–90 1039 (Sept. 13, 2005) (crude oil, natural gas, heating explained that physical delivery can help to reduce (September 2016), available at https:// oil, natural gasoline, gasoline, unleaded gas, gasoil, the risk in customer-driven commodity derivatives www.occ.treas.gov/publications-and-resources/ diesel, jet fuel, jet-kerosene, residual fuel oil, transactions if the activity is conducted in publications/banker-education/files/pub-report-to- naphtha, ethane, propane, butane, isobutane, crack accordance with safe and sound banking practices congress-sec-620-dodd-frank.pdf (Section 620 spreads, lightends, liquefied petroleum gases, and would achieve a more accurate and precise Report). natural gas liquids, distillates, oil products, coal, hedge than a cash-settled transaction. 95 In contrast, if a national bank engaged in emissions allowances, benzene, dairy, cattle, wheat, 103 See OCC Interpretive Letter No. 1040 (‘‘The hedging using derivatives on underlyings in which corn, soybeans, soybean meal, soybean oil, cocoa, Bank may conduct the proposed customer-driven, a national bank could invest directly, the bank coffee, cotton, orange juice, sugar, paper, rubber, physically settled emissions derivative business would not need to provide notice because this steel, aluminum, zinc, lead, nickel, tin, cobalt, and hedge risks arising from these permissible activity could be conducted under § 7.1030(c)(1) of iridium, rhodium, freight, high density banking activities as an extension of its existing the rule. polyethylene (plastic), ethanol, methanol, energy-related commodities derivatives business 96 The OCC has also long recognized that a newsprint, paper (linerboard), pulp (kraft), and . . . .’’); OCC Interpretive Letter No. 684 (‘‘the OCC national bank may hedge its risk using derivatives recovered paper (newsprint)). concludes that it is legally permissible for a on underlyings that a national bank would be 100 See, e.g., OCC Interpretive Letter No. 1073 national bank to hedge the financial exposure permitted to invest in directly. For example, a (aluminum, nickel, lead, zinc, and tin); OCC arising from otherwise permissible banking national bank may use futures contracts on Interpretive Letter No. 1060 (coal); OCC Interpretive activities in markets that involve physical delivery exchange, coin, or bullion to hedge activities Letter No. 1040 (emissions allowances); OCC of commodities and, in connection with such conducted pursuant to a national bank’s statutory Interpretive Letter No. 937 (electricity). hedging activities, to make or take physical delivery authority to buy and sell exchange, coin, or bullion. 101 See OCC Interpretive Letter No. 1073 of commodities . . . .); OCC Bulletin 2015–35, Similarly, a national bank may use futures to hedge (aluminum, nickel, lead, zinc, and tin); OCC Quantitative Limits on Physical Commodity against the risk of loss due to the interest rate Interpretive Letter No. 1060 (coal); OCC Interpretive Transactions (Aug. 4, 2015).

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cash-settled derivatives. However, the basis rather than on a ‘‘perfectly- activities in § 7.1030(e) and (c)(5) OCC recognizes that interpretive letters matched’’ basis.106 (prohibiting a national bank from taking addressing physical hedges of equity Relative to prior OCC interpretations, physical delivery of any commodity by derivatives do not always include the the final rule makes fewer distinctions receipt of physical quantities of the same condition.104 In light of prior based on the particular underlying or commodity on bank premises). interpretations’ treatment of equity how the national bank hedges its Notice requirement. Section 7.1030(d) derivatives transactions, the final rule derivatives financial intermediation of the proposal required a national bank removes the condition that a physical activity. While prior interpretations to provide written notice to its EIC prior hedge of a derivative other than a typically analyzed both the underlying to engaging in activity using derivatives commodity derivative must hedge a and the bank’s method for hedging the referencing assets that a national bank physically-settled transaction. The final customer-driven derivative (i.e., could not invest in directly. The OCC rule effects this change by removing perfectly-matched versus portfolio- intended this provision to be consistent ‘‘physically-settled (other than by hedged), the final rule permits with OCC interpretations that included transitory title transfer)’’ from customer-driven, cash-settled a process in which the national bank § 7.1030(c)(5) and including physical derivatives transactions on any provides notice to its EIC about the settlement as a requirement for physical underlying, whether perfectly-matched business and management practices the hedging involving commodities in new or portfolio-hedged. The OCC bank will employ in performing the § 7.1030(e)(5)(iii). These changes clarify recognizes that financial intermediation derivatives activity as financial that physical hedging involving in derivatives continues to evolve and intermediation.108 The OCC received securities is permissible for cash-settled that the markets for derivatives on one comment addressing the notice transactions, but physical hedging underlyings that the OCC has not process. This commenter said that the involving commodities is permissible previously addressed through notice requirements should be revised only to hedge physically-settled interpretations may have sufficient to ensure consistency in supervisory transactions. In response to the liquidity and depth to allow a bank to standards and to clarify that the proper comment regarding physically-settled conduct the activity as a financial role of supervisors in evaluating transactions where physical settlement intermediary. Similarly, the OCC derivatives activities relates to is directed to an affiliate, the OCC recognizes that these same factors may consistently applying safety and confirms that the type of transactions allow a national bank to hedge its soundness standards, not evaluating described in Interpretive Letter 949 are customer-driven derivatives activities in legal permissibility. Specifically, this permissible under the final rule as long evolving ways—whether by portfolio commenter said the final rule should as the transactions are cash-settled with hedging or physical hedging—consistent clearly distinguish between the legal respect to the national bank.105 with conducting the activity as a permissibility of derivatives Additionally, this commenter financial intermediary. Accordingly, the transactions (to be governed by § 7.1030 recommended that the OCC clarify the OCC is adopting these provisions with and the OCC’s legal interpretations application of the definitions ‘‘perfectly- the targeted changes described above. thereof) from firm-specific prudential The proposal requested comment on matched’’ and ‘‘portfolio-hedged’’ to concerns, to be reviewed by the EIC and whether the rule should reflect any physically-hedged derivatives supervisory team; require an EIC to additional safety and soundness transactions. The commenter described consult with OCC leadership before standards regarding the underlyings that that a derivative transaction that is raising any categorical safety and are permissible for financial physically hedged on an individual soundness concerns about an activity; intermediation in derivatives and how basis, such as a total return swap that is and provide for consistent and uniform national banks may hedge these standards with respect to evaluating the hedged via holding the underlying activities. The proposal specifically safety and soundness of certain types of equity position would not necessarily be requested comment on whether the derivatives activities as a categorical covered by the definition of ‘‘perfectly- regulation should include additional matter, with the EIC and supervisory matched’’ which is limited to two back- language relating to the liquidity of the team focusing only on idiosyncratic, to-back derivatives transactions. As market for permissible customer-driven bank-specific aspects of the relevant discussed above, the OCC believes it is derivatives activities. The OCC did not activity. preferable to retain the definition of receive any comments on this request First, the OCC believes the rule ‘‘perfectly-matched’’ as used in prior and is not adopting any additional appropriately identifies safety and OCC interpretations. However, to safety and soundness standards or soundness and legal permissibility address the commenter’s concern that language related to the underlyings that considerations. For example, paragraph the activities described in § 7.1030(c)(5) are permissible for derivatives financial (c) identifies the legally permissible will not be perfectly matched under this intermediation activities. As with any categories of derivatives activities, while definition, the final rule replaces the national bank permissible activity, paragraphs (d) and (e) establish the term ‘‘perfectly-matched’’ with ‘‘hedged general safety and soundness standards supervisory notice requirement and on a transaction-by-transaction basis.’’ apply to these activities.107 In addition, This change is consistent with prior the final rule adopts specific interpretations that describe physical 108 For example, OCC Interpretive Letter No. 1160 requirements for physical hedging contemplates that a bank would provide written hedging on a transaction-by-transaction notification to its EIC prior to commencing a 106 OCC Interpretive Letter No. 1040 (‘‘The Bank derivatives financial intermediation business for a 104 See OCC Interpretive Letter No. 892; OCC also proposes to hedge the market risk associated reference asset addressed in prior OCC interpretive Interpretive Letter No. 1090. with the proposed emissions derivatives letters. This process replaced the no-objection 105 OCC Interpretive Letter No. 949 provides that transactions on a transaction-by-transaction or process that was typically included in prior OCC the equity derivatives transactions under portfolio basis, primarily with physical emissions interpretive letters. See, e.g., OCC Interpretive consideration in that letter would be cash settled allowances.’’). Letter No. 1065. The notice provision of the final with respect to the national bank and ‘‘[i]f under the 107 As discussed below, the final rule includes rule also replaces the no-objection process terms of certain contracts the customer is permitted new paragraph (f), which explicitly provides that a contemplated in OCC interpretive letters addressing to elect physical settlement, an affiliate of the bank national bank must adhere to safe and sound hedging activities using derivatives on underlyings will make or receive physical delivery.’’ OCC banking practices in conducting the activities in which a national bank could not invest directly. Interpretive Letter No. 949 (Sept. 19, 2002). described in § 7.1030. See OCC Interpretive Letter No. 896 (Aug. 21, 2000).

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additional safety and soundness Specifically, the written notice must This commenter said that the final rule requirements, respectively. For further include a detailed description of the should not define categories of clarity, however, the final rule adds a proposed activity, including the ‘‘underlying’’ by regulation, but rather new paragraph (f) confirming that a relevant underlying(s); the anticipated should take a substantially more national bank must adhere to safe and start date of activity; and a detailed principles-based approach to sound banking practices in conducting description of the national bank’s risk determining when prior notice is the activities described in § 7.1030. The management system (policies, required that looks primarily to the risk provision specifically requires a bank to processes, personnel, and control management implications and have a risk management system systems) for identifying, measuring, challenges of any potential new (policies, processes, personnel, and monitoring, and controlling the risks of derivatives activity. Specifically, this control system) that effectively manages the activity. commenter said the final rule should (i.e., identifies, measures, monitors, and The notice requirement does not make clear that prior notice is required controls) these activities’ interest rate, impose a prior approval requirement. only when a national bank commences credit, liquidity, price, operational, Rather, the notice is designed to make a new activity or modifies an existing compliance, and strategic risks. This OCC supervisors aware of a national activity that would expose the bank to, provision clarifies that, in addition to bank’s derivatives activities so that such and require the bank to manage and being within a national bank’s legal activities can be appropriately scoped control, a material and substantially authority, derivatives activities must into OCC’s ongoing supervision and new type of market risk. The commenter also be conducted in a safe and sound oversight of the bank’s safety and also said that no notice should be manner. As part of their regular soundness. In addition, having required under the final rule where a supervisory activities, OCC supervisors awareness of a bank’s derivatives national bank engages in permissible consider both whether activities are safe activities will enable the OCC to raise derivatives activity that is hedged either and sound, as well as if they are questions as to whether the derivatives (1) using mirrored transactions that conducted in compliance with activity can be conducted in a safe and involve no market risk or (2) on a nearly applicable law. sound manner, or whether the perfectly-matched basis that involve The final rule does not require derivatives activity is within the scope only de minimis residual market risk. In supervisory staff to consult with OCC of those legally authorized for a national contrast, this commenter argued, where leadership before raising ‘‘categorical bank, before the bank activities a national bank is engaged in derivatives safety and soundness concerns’’ about a commence or at any time, as is the case activities that are hedged on a portfolio derivatives activity as the commenter with any other permissible bank basis pursuant to which the bank is suggested. Nor does the final rule activities. actively managing an inventory of prescribe uniform regulatory standards Like the proposal, § 7.1030(d)(1) of market risks, imposing a notice specific to evaluating the safety and the final rule requires a national bank to requirement is appropriate as it would soundness of certain types of derivatives provide its EIC notice prior to engaging facilitate supervisory review of a bank’s activities. Making assessments with in any of the derivatives hedging or risk management and internal controls respect to the safety and soundness of financial intermediation activities in implementing that hedging strategy. an activity is the key function of OCC described in § 7.1030(c)(2) through (5) The OCC disagrees and finds that, supervisors. The OCC has established for the first time. This notice even when a national bank believes it is generally applicable safety and requirement applies, for example, if a not exposed to a materially new type of soundness standards by regulation 109 bank has previously engaged in cash- market risk, there is supervisory value and has issued extensive guidance on settled derivatives with respect to a in receiving notice of the new activities. the examination process.110 Requiring particular underlying as described in The considerations identified by the additional internal processes before an § 7.1030(c)(3) but seeks to begin commenter—facilitating supervisory examiner may raise concerns regarding physically settling transactions as review of a bank’s risk management and an activity could interfere with this described in § 7.1030(c)(4) or (5). internal controls in implementing its important function. Accordingly, OCC Likewise, a national bank must provide hedging strategy—are relevant whether supervisors will examine national bank notice prior to first engaging in the activity is hedged on a perfectly- derivatives activities as part of their derivatives hedging activities pursuant matched or portfolio-hedged basis.111 regular and ongoing examination and to § 7.1030(c)(2) or expanding the bank’s Receiving a notice will allow supervision activities. derivatives hedging activities to include supervisors to incorporate the activities The OCC expects the notice a new category of underlying. Also like into their overall supervisory strategy. requirement in the final rule to enhance the proposal, under § 7.1030(d)(2) of the The OCC disagrees that notice should prudential supervision of national bank final rule, the bank must submit written not be required for derivatives derivatives activities by ensuring that notice at least 30 days before the transactions that the national bank banks evaluate the risks of the activities national bank commences the determines involve de minimis market both at inception and on an ongoing derivatives activity. risk. Receiving notices in such basis. In addition, the OCC expects that The OCC requested comment on circumstances is particularly important incorporating notice as a regulatory whether it was sufficiently clear when for banks that are engaging in requirement will ensure consistency in a notice would be required and what derivatives activities for the first time or notice practices across OCC-supervised would constitute a ‘‘new category of institutions. Like the proposal, the final underlying.’’ The OCC specifically 111 The notice requirement is expected to enhance rule requires the written notice to requested comments on whether the supervision by providing OCC supervisors with regulation text should list these comprehensive, up-to-date information on the include information that is substantially activities in which the national bank is engaged. similar to the information that is categories and, if so, whether the This information will assist OCC supervisors by discussed in Interpretive Letter 1160. regulation should specify that any new ensuring they have an opportunity to assess a derivatives activities not falling within bank’s ability to engage in derivatives activities in a safe and sound manner prior to the bank 109 one of the specified categories also 12 CFR part 30. commencing the activity and provide them ongoing 110 See, e.g., the Examination Process Series of the requires notice. The OCC received one information as those activities expand to new Comptroller’s Handbook (June 2018). comment in response to this request. categories.

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expanding a limited derivatives positions in the underlying except as quantities of the commodity on bank business to incorporate additional necessary for the orderly establishment premises. The OCC explained in the derivatives products. The OCC believes or unwinding of a hedging position; and preamble to the proposal that these that the notice process is a reasonable (4) the national bank does not acquire requirements apply to physical hedging requirement in light of its value to equity securities for hedging purposes activities involving commodities due to supervisors. The notice process requires that constitute more than five percent of the unique risks of physical commodity a limited amount of information that a class of voting securities of any activities.117 should be readily available to the bank issuer.113 The OCC did not receive any The OCC received one comment and does not require that the bank comments on these proposed addressing these requirements. First, receive approval prior to conducting the requirements for physical hedging this commenter said the final rule activity. Accordingly, the OCC activities. Because these requirements should require that any physical hedge continues to believe the notice process continue to accurately reflect OCC be ‘‘at least as effective as,’’ not more will provide an efficient notice standard supervisory expectations for physical effective than, a cash-settled hedge. for national banks engaging in hedging activities, the OCC is adopting Second, this commenter said, to better derivatives activities. For the foregoing the requirements as proposed. align the five percent limit with reasons, the OCC is adopting the notice Consistent with OCC interpretive financial risk management practices, requirement as proposed. letters and guidance concerning this limit should be calculated based on One commenter said that the final physical hedging with commodities in the type of market risk (i.e., the rule should make clear that national which a national bank could not invest denominator with respect to a given banks may continue to rely on guidance directly,114 the proposed rule imposed transaction should include all that they have previously received additional requirements on physical transactions that implicate substantially regarding the permissibility of hedging with commodities. Under the equivalent market risk). Third, the derivatives activities and need not proposed rule, a national bank would be commenter said the OCC should provide notice under proposed new permitted to engage in physical hedging expressly confirm that the five percent § 7.1030 to continue to engage in with commodities only if the national limit is intended to be calculated in the activities that were commenced under bank’s physical position in a particular same manner described in OCC Bulletin the prior interpretive and supervisory physical commodity (including, as 2015–35 and that the OCC should framework before the final rule became applicable, delivery point, purity, grade, provide greater clarity and specificity effective. As described in the proposal, chemical composition, weight, and size) regarding the derivatives that are national banks that have provided is no more than five percent of the gross included in the five percent test’s notice to or received statements of no- notional value of the national bank’s denominator because they ‘‘allow for objection from their EICs for particular derivatives that (1) are in that same physical settlement within 30 days.’’ derivatives activities consistent with the particular commodity and (2) allow for The OCC disagrees with the first two process in prior OCC interpretive letters physical settlement within 30 days. comments. The purpose of § 7.1030(e) of would not be required to submit new Title to commodities acquired and the proposal was to incorporate the notices for those activities. immediately sold in a transitory title OCC’s existing interpretations and Additional requirements for physical transaction would not count against this supervisory guidance into regulation. hedging activities. Section 7.1030(e) of five percent limit.115 Consistent with Under existing interpretations, a the proposal incorporated the practices OCC interpretive letters,116 the physical hedge should be more effective from prior interpretive letters and proposed rule permitted physical than a cash-settled hedge involving the guidance related to physical hedging hedging involving commodities only if same commodity in light of the with securities and commodities.112 The the physical position more effectively additional risks associated with proposal included certain modifications reduces risk than a cash-settled hedge physical hedging.118 In other words, if to these practices to promote involving the same commodity. The a national bank has a choice between consistency in the practices national proposal also specified that a national hedging with a cash-settled derivative or banks employ with respect to physical bank may not take physical delivery of a physical commodity, all else being hedging activities. Specifically, the any commodity by receipt of physical equal, the bank should choose the cash- proposal applied the framework in settled derivative that involves less risk interpretive letters addressing physical 113 Certain of the practices described in prior OCC to the bank. This general principle is hedging using securities to all physical interpretive letters were not included in the consistent with OCC interpretations that hedging activities involving underlyings proposed rule text because they are generally have found cash-settled transactions applicable safety and soundness standards that can in which a national bank could not be evaluated and addressed under other existing raise fewer supervisory concerns invest directly. Under the proposed sources of law, including, as applicable, 12 U.S.C. compared to physically-settled rule, a national bank could engage in 1818. For example, several interpretive letters transactions.119 Accordingly, the final physical hedging only if: (1) The discuss that a national bank should have rule continues to require a national bank appropriate risk management policies and national bank holds the underlying procedures for its physical hedging activities. In to utilize cash-settled transactions when solely to hedge risks arising from addition, several interpretive letters have also such transactions are equally effective derivatives transactions originated by specified that a bank may not engage in physical as physical hedges. customers for the customers’ valid and hedging activities for the purpose of speculating in Under existing OCC guidance, the five security or commodity prices. As described above, percent limit on physical hedging independent business purposes; (2) the customer-driven financial intermediation as defined physical hedging activities offer a cost- in the proposal (and adopted in the final rule) activities applies to a particular effective means to hedge risks arising would not include activities entered into for the from permissible banking activities; (3) purpose of speculation. 117 See 85 at 40809. See also Section 620 Report 114 See OCC Bulletin 2015–35; OCC Interpretive (describing the price risks and operational risks the national bank does not take Letter No. 684. specific to physical commodities activities). anticipatory or maintain residual 115 Consistent with OCC Interpretive Letter No. 118 See OCC Interpretive Letter No. 684; OCC 1040, this five percent limit would not apply to Interpretive Letter No. 632. 112 See OCC Bulletin 2015–35; OCC Interpretive physical hedging using emissions allowances. 119 See generally OCC Interpretive Letter No. Letter No. 935 (May 14, 2002); OCC Interpretive 116 See OCC Interpretive Letter No. 684; OCC 1039; OCC Interpretive Letter No. 632; No-Objection Letter No. 892; OCC Interpretive Letter No. 684. Interpretive Letter No. 632 (Jun. 30, 1993). Letter 87–5.

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commodity, as defined by the consistent with the safe and sound The OCC proposed to amend § 7.2000 commodity’s delivery point, purity, operation of the banking system. As part to reduce burden, provide greater grade, chemical composition, weight, of this process, the OCC proposed clarity, and modernize the national bank and size (as applicable).120 This updating and modernizing § 7.2000, charter with respect to corporate condition is intended to ensure a bank’s which provides a regulatory framework governance provisions. The proposed physical hedging activities remain a for national bank corporate governance. amendments also would address nominal portion of the national bank’s As described by the OCC in various anomalous results that may arise when risk management activities.121 Further, conditional approvals,123 ‘‘corporate a national bank eliminates its holding applying the limit based on a particular governance procedures’’ generally refer company. As a general matter, the OCC commodity ensures that the national to requirements involving the operation proposed changing the term ‘‘corporate bank keeps physical inventory of a and mechanics of the internal governance procedure’’ used in § 7.2000 particular commodity to levels organization of a national bank, to ‘‘corporate governance provisions’’ commensurate with its need to make or including relations among owners- and to revise paragraph (a) of § 7.2000 take physical delivery of that investors, directors, and officers, and do accordingly. As discussed in the commodity.122 It remains important that not include requirements that relate to proposal, the OCC believes that a national bank’s physical hedging the banking powers or activities of a ‘‘corporate governance procedure’’ may activities amount to no more than a national bank or relationships between be construed more narrowly than nominal portion of a bank’s risk a national bank and customers or third intended and omit corporate governance management activities and that the parties. Examples of corporate practices that are not procedural in inventory of a particular commodity is governance procedures include, but are nature. The OCC proposed revising limited to levels commensurate with the not limited to, share exchanges, anti- paragraph (a) to provide the corporate bank’s need to make or take physical takeover provisions, and the use of governance provisions in a national delivery of that commodity. blank check procedures in issuing bank’s articles of association and bylaws Accordingly, the final rule continues to preferred stock. The OCC issued and the bank’s conduct of its corporate apply the limit to each particular § 7.2000 in 1996 to provide national governance affairs must comply with physical commodity (including, as banks with increased flexibility to applicable Federal banking statutes and applicable, delivery point, purity, grade, structure their corporate governance regulations and safe and sound banking chemical composition, weight, and procedures consistent with the practices. The OCC received no size). The OCC believes that applying particular needs of the bank while comments on proposed paragraph (a) the limit based on a broader category, providing shareholders and others with and adopts it as proposed. As discussed such as all transactions that implicate adequate notice of the corporate in the proposal, the OCC does not substantially equivalent market risk, standards on which a bank will rely.124 intend this change to affect the would not be administrable and could The OCC has not substantively changed application of prior OCC interpretations lead to inconsistent calculation of the § 7.2000 since its adoption.125 of corporate governance procedures to § 7.2000. limit. Section 7.2000 currently provides that In response to the commenter’s third The OCC also proposed increasing a a national bank proposing to engage in national bank’s flexibility in choice of comment on the five percent limit, the a corporate governance procedure must OCC confirms that the limit is meant to corporate governance provisions in comply with applicable Federal banking three ways. First, the OCC proposed align with OCC Bulletin 2015–35. In statutes and regulations and safe and revising paragraph (b) of § 7.2000 to particular, a national bank’s physical sound banking practices. In addition, authorize a national bank to elect the position in a particular physical § 7.2000 provides that to the extent not corporate governance provisions of the commodity (including, as applicable, inconsistent with applicable Federal law of any State in which any branch of delivery point, purity, grade, chemical banking statutes or regulations, or bank the bank is located in addition to the composition, weight, and size) must not safety and soundness, a national bank law of the State in which the bank’s be more than five percent of the gross may elect to follow the corporate main office is located, to the extent not notional value of the bank’s derivatives governance procedures of the law of the inconsistent with applicable Federal that are in that particular physical State in which the main office of the banking statutes or regulations or safety commodity and allow for physical bank is located, the law of the State in and soundness. The OCC received no settlement within 30 days. Like OCC which the holding company of the bank comments on this change and adopts it Bulletin 2015–35, this limit applies to is incorporated, Delaware General as proposed. Accordingly, a national transactions that contemplate physical Corporation Law, or the Model Business bank is no longer limited to using the delivery within 30 days, i.e., the Corporation Act. Further, § 7.2000 corporate governance provisions of the denominator includes derivatives that requires that a national bank designate State where its main office is located. can or will physically settle within 30 in its bylaws the body of law selected For example, a national bank with its days. for its corporate governance procedures. main office in State A and branches in Subpart B—National Bank Corporate Finally, § 7.2000 describes the process State B and State C may elect to use the Practices for obtaining OCC staff positions on the corporate governance provisions of the ability of a national bank to engage in law of one of State A, State B, or State National Bank Corporate Governance a particular corporate governance C. (§ 7.2000) procedure. Second, the OCC proposed revising As noted, the OCC continually seeks paragraph (b) to authorize the national to update its regulations to stay current 123 See e.g., OCC Conditional Approval No. 859 bank to use the law of the State where with industry changes and technological (June 13, 2008); OCC Conditional Approval No. 696 one holding company of the bank is advances, subject to Federal law and (June 9, 2005). incorporated. The current rule indicates 124 61 FR 4849, at 4854 (Feb. 9, 1996). that a national bank may use the law of 125 Non-substantive amendments to § 7.2000 120 OCC Bulletin 2015–35. changed the address and telephone number of the the State where the holding company of 121 Id. OCC Communications Office. See 79 FR 15641 the bank is incorporated. This 122 Id. (March 21, 2014); 80 FR 28345 (May 18, 2015). amendment expressly recognizes the

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possibility that a national bank may be bank is subject to or may adopt the regulations pertaining to corporate controlled by more than one holding corporate governance provision; (4) governance provisions for Federal company and that those holding identification of all Federal banking savings associations in 12 CFR 5.21 and companies may be incorporated by statutes or regulations that are on the 5.22. Under current law, all Federal different States. Under this amendment, same subject as, or otherwise have a savings associations may elect to use the the bank is able to pick the law of the bearing on, the subject of the proposed corporate governance provisions of the State of any one of its holding State corporate governance provision; laws of the State where the home office companies. The OCC received no and (5) an analysis of how the proposed of the association is located. Federal comments on this change and adopts it corporate governance provision is not stock savings associations also may elect as proposed, with a technical change for inconsistent with applicable Federal the laws of the State where any holding consistency within paragraph (b). statutes or regulations nor with bank company of the association is Third, the OCC proposed adding a safety and soundness. The OCC received incorporated or chartered; Delaware new paragraph (c) that would allow a no comments on proposed paragraph (d) General Corporation law; or the Model national bank to continue to use the and adopts it as proposed. The OCC Business Corporation Act, provided that corporate governance provisions of the notes that this provision does not such procedures may be elected to the law of the State where its holding preclude a national bank from seeking extent not inconsistent with applicable company is incorporated even if the informal consultation with OCC staff. Federal statutes and regulations and holding company is later eliminated or However, if the bank wants to receive a safety and soundness, and such no longer controls the bank, and the written response from OCC staff, it must procedures are not prohibited by part 5. national bank is not located in that follow the procedure in this proposed One commenter stated that Federal State. This amendment removes an paragraph (d). mutual savings associations should have impediment to a national bank that may The final rule revises the heading of the same leeway in making a choice of choose to eliminate its holding company § 7.2000 to reflect the change in law as national banks. Accordingly, the or is no longer controlled by that terminology from corporate governance OCC is revising §§ 5.21 and 5.22 to holding company but wishes to retain procedures to corporate governance permit additional flexibility for Federal longstanding and familiar corporate provisions. The final rule also makes a savings associations to allow parity with governance provisions. The OCC technical change to the heading not national banks, as applicable and received one comment supporting previously proposed to clarify that this pursuant to permissible law. As a result proposed paragraph (c) and adopts it as provision applies to national banks. As of this final rule, Federal savings proposed. a result, the heading now reads associations also may elect to use the The OCC also proposed revising ‘‘National bank corporate governance.’’ corporate governance provisions of any current paragraph (c) of § 7.2000 The OCC requested comment on State in which a branch of the (proposed to be redesignated as whether a national bank also should be association is located and, in the case of § 7.2000(d)). Current paragraph (c) able to adopt a combination of corporate Federal stock savings associations, the provides that the OCC considers governance provisions from the laws of law of any State in which any current requests for the OCC staff’s position on several different States where the or former holding company of the the ability of a national bank to engage national bank and any holding association is incorporated or chartered. in a particular State corporate companies are located, thus potentially The final rule also changes ‘‘institution’’ governance procedure in accordance resulting in a national bank following to ‘‘association’’ in § 5.21 for with the no-objection procedures set corporate governance provisions that consistency. forth in OCC Banking Circular 205 or derive from a combination of States’ In addition, the OCC requested any subsequently published agency laws, or whether a national bank should comment on whether the final rule procedures, and that requests should be limited to electing and using the should change the term ‘‘corporate demonstrate how the proposed practice corporate governance provisions of a governance procedures’’ to ‘‘corporate is not inconsistent with applicable single State. The OCC received one governance provisions’’ in §§ 5.21 and Federal statutes or regulations and is comment on this request. The 5.22 to be consistent with the change in consistent with bank safety and commenter raised potential litigation terminology proposed for § 7.2000. The soundness. The OCC issued Banking issues with adopting a combination of OCC did not receive any comments on Circular 205 on July 26, 1985 and has corporate governance provisions, this request. For clarity and conformity, not modified it since. However, a questioning whether courts will respect the OCC is making this technical change national bank also may request the combined elections of law where there to §§ 5.21 and 5.22. views of the OCC on an interpretation are minimal contacts with a State whose The OCC received two additional of national banking statutes and law has been elected, and citing a trend comments regarding § 7.2000. One regulations independent of the process in court decisions on the validity of commenter requested that the OCC in Banking Circular 205, which has been choice of law as part of contractual review the form articles of association the more common approach since 1985. agreements. Given this concern and the and bylaws to confirm that they are In order to update paragraph (c), the lack of positive comments regarding this consistent with applicable Federal OCC proposed removing the change, as well as the possible banking statutes and regulations. The requirement that banks requesting the confusion for the bank, shareholders, commenter asserted that these forms OCC’s views on State corporate the OCC, and others that may arise with contain requirements that are not governance law use the no-objection the use of multiple States’ corporate mandated by Federal banking statutes procedure. The proposal also listed the governance laws, the OCC is not and regulations. As the commenter’s information that a request must contain. amending the final rule at this time to request does not specifically request any Similar to what is set forth in OCC permit the adoption of corporate specific revisions to § 7.2000, the OCC Banking Circular 205, this information, governance provisions from the laws of is adopting the amendments as includes: (1) The name of the bank; (2) several different States. proposed. However, the OCC notes that citations to the State statutes or Further, the OCC requested comment it periodically reviews its model articles regulations involved; (3) a discussion as on whether it should make, to the extent of association and bylaws in the to whether a similarly situated State appropriate, similar revisions to the ordinary course of business.

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Another commenter recommended provisions. Specifically, paragraph (a) of triggering event. Because no Federal that the OCC add a provision to part 7 § 7.2001 provides that a national bank banking statutes or regulations directly recognizing the authority of a national may, pursuant to 12 CFR 7.2000(b), or indirectly address these shareholder bank to adopt exculpatory clauses in adopt anti-takeover provisions included purchase rights, State poison pill laws their articles and/or bylaws under in State corporate governance law if the are not inconsistent with Federal law.131 applicable State law or the Model Code. provisions are not inconsistent with Requiring all shareholder actions to The commenter’s request for a provision Federal banking statutes or regulations be taken at a meeting. These State on national bank authority to adopt and not inconsistent with bank safety provisions provide, or permit the exculpatory clauses raises an issue that and soundness. corporation to provide in its certificate the OCC did not specifically address in Paragraph (b) of § 7.2001 sets forth the of incorporation or other governing the proposal. The proposed revisions type of anti-takeover provisions in State document, that all actions to be taken by were not intended to address or corporate governance provisions that shareholders must occur at a meeting sanction specific substantive provisions the OCC specifically has determined are and prohibit shareholders from taking of State corporate law. As the OCC did not inconsistent with Federal banking action by written consent. Certain not contemplate the commenter’s statutes or regulations.129 This list is not Federal banking statutes require requested provision in the proposed exclusive and the OCC may find that shareholder approval to be taken at a rule, the OCC declines to further revise other State anti-takeover laws are not meeting 132 while other sections require § 7.200 at this time. However, the inconsistent with Federal banking shareholder approval but do not specify agency may consider this and similar statutes or regulations. A national bank a meeting.133 There is no provision in issues in future rulemakings. may elect to follow these provisions, Federal law authorizing national bank subject to the bank safety and soundness shareholders to take action by written National Bank Adoption of Anti- limitation discussed below. consent in lieu of a meeting. Takeover Provisions (§ 7.2001) Restrictions on business combinations Furthermore, nothing in Federal law The OCC proposed to add a new with interested shareholders. These precludes a national bank’s articles of § 7.2001 to address the extent to which State provisions prohibit, or permit the association from requiring a meeting for a national bank may include anti- corporation to prohibit in its certificate any action. Therefore, this type of State takeover provisions in its articles of of incorporation or other governing provision is not inconsistent with association or bylaws.126 Anti-takeover document, the corporation from Federal law. provisions are examples of corporate engaging in a business combination Limits on shareholders’ authority to governance provisions 127 covered by 12 with an interested shareholder or any call special meetings. These State CFR 7.2000. As discussed above, under related entity for a specified period of provisions provide, or permit the § 7.2000(b) a national bank may elect to time (e.g., three years) from the date on corporation to provide in its certificate follow the corporate governance which the shareholder first becomes an of incorporation or other governing provisions of specified State law to the interested shareholder (subject to document, that only the board of extent it is (1) not inconsistent with certain exceptions, such as board directors, and not shareholders, have applicable Federal banking statutes or approval). An interested shareholder is the right to call special meetings of the regulations and (2) not inconsistent with one that owns an amount of stock shareholders or, if shareholders have the bank safety and soundness. specified in the State statute, e.g., at right, require a high percentage of The OCC received one comment least fifteen percent. Federal banking shareholders to call the meeting. related to proposed § 7.2001. The statutes and regulations do not address, Because Federal banking statutes or commenter raised several concerns directly or indirectly, this type of regulations do not address, directly or about how the provision would apply to restriction for national banks. Although indirectly, the right of shareholders of a mutual institutions. The OCC notes that Federal banking statutes authorize national bank to call special meetings, proposed § 7.2001 applies only to national banks to engage in specified these type of State laws are not 130 national banks, not Federal mutual consolidations and mergers, this inconsistent with Federal law. savings associations. Further, national authorization does not preclude a bank’s Shareholder removal of a director banks may only be organized as shareholders from adopting a provision only for cause. These State provisions corporations and not as banks in the that limits the consolidations and provide, or permit the corporation to mutual form of organization. The mergers into which the bank would provide in its certificate of proposal noted it did not apply to enter. Therefore, State restrictions on incorporation or other governing Federal savings associations and that business combinations with interested document, that shareholders may existing provisions on this subject shareholders are not inconsistent with remove a director only for cause, rather applicable to stock Federal savings Federal law. than both for cause and without cause. associations were not affected by the Poison pill. A ‘‘poison pill’’ is a State The National Bank Act and OCC proposal.128 Therefore, the OCC adopts statutory provision that provides, or that regulations do not have a specific § 7.2001 as proposed, with one permits the corporation to provide in its provision addressing director removal clarifying change to paragraph (d). certificate of incorporation or other As noted in the proposed rule, the governing document, that all 131 However, shareholders, including the hostile purpose of § 7.2001 is to provide the shareholders, other than the hostile acquiror, should consider the implications under OCC’s views about the permissibility of acquiror, have the right to purchase the Change in Bank Control Act or Bank Holding additional stock at a substantial Company Act if a shareholder, or shareholders several types of anti-takeover acting in concert, acquire sufficient shares to discount upon the occurrence of a constitute ‘‘control.’’ 126 OCC regulations currently include provisions 132 See 12 U.S.C. 71, 214a, 215, 215a, and 215a– addressing adoption of anti-takeover provisions by 129 Permitting the use of staggered boards is 2. stock Federal savings associations. See 12 CFR another anti-takeover provision. New § 7.2001 does 133 See 12 U.S.C. 30, 51a, 57, and 59. However, 5.22(g)(7), (h) and (j)(2)(i)(A). The OCC did not not include staggered boards because they are now 12 U.S.C. 21a provides that any action requiring propose to amend those provisions. expressly permitted under the National Bank Act. approval of the stockholders be obtained by 127 The final rule changes this terminology in 12 U.S.C. 71; 12 CFR 7.2024. approval by a majority vote of the voting shares at § 7.2000 to ‘‘corporate governance provisions.’’ 130 See 12 U.S.C 215, 215a, 215a–1, 215a–3, and a meeting, unless the statutory provision addressing 128 See 85 FR 40794, at 40810, note 108. 215c. the action requires greater level of approval.

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by shareholders. Removal only for cause association.137 A State corporate Paragraph (e) provides for OCC case- is consistent with the OCC’s model governance provision that interferes by-case review of anti-takeover national bank Articles of Association, with this express right to vote is provisions. The OCC reviewed each which provide for removal for cause and inconsistent with Federal law. type of State anti-takeover provision for failure to meet statutory director As indicated above, § 7.2000(b) described in paragraph (b) for qualifications.134 Therefore, State permits a national bank to elect to consistency with Federal banking provisions requiring shareholder follow a State corporate governance statutes and regulations only at a removal of a director only for cause are provision only if it is not inconsistent general level, without reviewing the not inconsistent with Federal law. with Federal law and bank safety and specific terms of a proposed provision Paragraph (c) of § 7.2001 sets forth the soundness. Paragraph (d) of § 7.2001 to be adopted by a particular bank. type of anti-takeover provisions in State addresses the impact of bank safety and While the OCC has concluded that the corporate governance provisions that soundness on adoption of anti-takeover types of provisions set out in paragraph the OCC has determined are provisions. (b) are not inconsistent with Federal inconsistent with Federal banking Anti-takeover provisions may make it banking statutes and regulations in statutes or regulations. A national bank harder for a bank to be acquired by general, the specific provision a may not elect to follow these provisions. another bank or by investors or to raise particular bank adopts may contain These provisions are set forth below. capital by discouraging share purchases features that could change the result of Supermajority voting requirements. by a potential acquiror. Thus, when a the OCC’s review. Similarly, some anti- These State statutory provisions require, bank is in a weak condition, anti- takeover provisions may be inconsistent or permit the corporation to require in takeover provisions the OCC has with bank safety and soundness for a its certificate of incorporation or other determined are not inconsistent with particular national bank because of its governing document, that a Federal law nevertheless would be individual circumstances, even if it is supermajority of the shareholders inconsistent with bank safety and not subject to the conditions listed in approve specified matters. A soundness if they would impair the paragraph (d). requirement that a supermajority vote of possibility of restoring the bank to In order to address the need for shareholders must approve some sound condition. These provisions individual determinations when transactions is inconsistent with Federal would then be impermissible. appropriate, paragraph (e) provides that law when applied to transactions for Accordingly, paragraph (d) provides the OCC may determine that a State which a Federal statute or regulation that any State corporate governance anti-takeover provision, as proposed or includes an express specific shareholder provision, including anti-takeover adopted by an individual national bank, approval level. Certain provisions of the is (1) inconsistent with Federal banking provisions, that would render more National Bank Act specify shareholder statutes or regulations, even if it is of a difficult or discourage an injection of approval by a two-thirds vote 135 and type included in paragraph (b) or (2) capital by purchase of bank stock, a other provisions require majority inconsistent with bank safety and merger, the acquisition of the bank, a shareholder approval.136 When a soundness other than as provided in tender offer, a proxy contest, the provision in the National Bank Act paragraph (d). The OCC may begin a assumption of control by a holder of a specifies the level of shareholder vote case-by-case review on its own large block of the bank’s stock, or the required for approval, it is inconsistent initiative. In addition, a bank that removal of the incumbent board of with Federal law to follow a State wishes the OCC to review the directors or management is inconsistent corporate governance provision that permissibility of the specific State anti- permits or requires a different level or with bank safety and soundness if: (1) takeover provisions it has adopted or an additional shareholder approval The bank is less than adequately proposes to adopt may request the requirement for a subset of capitalized (as defined in 12 CFR part OCC’s review, under the procedures set shareholders. 6); (2) the bank is in troubled condition forth at 12 CFR 7.2000(d). Restrictions on a shareholder’s right (as defined in 12 CFR 5.51(c)(7)); (3) Finally, paragraph (f) addresses the to vote all the shares it owns. These grounds for the appointment of a method a national bank, its State statutory provisions prohibit, or receiver under 12 U.S.C. 191 are shareholders, and its directors must use permit the corporation in its certificate present, as determined by the OCC; or to adopt each anti-takeover provision. In of incorporation or other governing (4) the bank is otherwise in less than general, the bank must follow the document to prohibit, a person from satisfactory condition, as determined by requirements for board of director and voting shares acquired that increase the OCC. The OCC notes that the final shareholder approval set out in the State their percentage of ownership of the rule adds ‘‘as determined by the OCC’’ corporate governance statute it is company’s stock above a certain level. to paragraph (d)(3) to clarify for a bank electing to follow. However, if the This type of provision is inconsistent when this condition would be present. provision is included in the bank’s with the National Bank Act, which However, paragraph (d) also provides articles of association, the bank’s expressly provides that each that an anti-takeover provision is not shareholders must approve the shareholder is entitled to one vote on inconsistent with bank safety and amendment of the articles pursuant to each share of stock held by the soundness if, at the time it adopts the 12 U.S.C. 21a, even if the State law does shareholder on all matters other than provision, the national bank: (1) Is not not require approval by the elections for directors, where subject to any of the foregoing shareholders. Further, if the State cumulative voting may be allowed if so conditions and (2) includes along with corporate governance law requires the provided in the articles of the provision a limitation that the provision to be in the company’s articles provision is not effective if one or more of incorporation, certificate of 134 See Articles of Association, Charters, and of the foregoing conditions occur or if incorporation, or similar document, the Bylaw Amendments (Forms), Comptroller’s the OCC otherwise directs the bank not national bank must include the Licensing Manual (June 19, 2017) (Model Articles to follow the provision for supervisory of Association, Article Fourth, last paragraph). provision in its articles of association. If 135 See 12 U.S.C. 30, 57, 59, 181, 214a, 215, 215a, reasons. the State corporate governance law does and 215a–2. not require the provision to be in the 136 See 12 U.S.C. 21a and 51a. 137 12 U.S.C. 61. company’s articles of incorporation,

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certificate of incorporation, or similar amendments related to shareholder national bank rule consistent with rules document but allows it to be in the meetings in one section. for Federal savings associations. bylaws, then the national bank must The OCC received one substantive Oath of National Bank Directors include the provision in either its comment letter that supported these (§ 7.2008) articles of association or in its bylaws. amendments. In response to a request However, if the State corporate for comment included in the preamble The OCC is making technical changes governance law requires shareholder to this interim final rule, this to § 7.2008 in this final rule not approval for changes to the commenter opposed any new risk included in the proposed rule. corporation’s bylaws, then the national management standards to mitigate any Currently, § 7.2008 provides that a bank must include the provision in its security risks arising from telephonic or notary public, including one who is a articles of association. electronic meetings, noting that new director but not an officer of the standards would be unnecessary given national bank, may administer the oath National Bank Director or Attorney as current safeguards and regulatory of directors, and that any person, other Proxy (§ 7.2002) requirements. The OCC is finalizing the than an officer of the bank, having an Twelve U.S.C. 61 prohibits an officer, amendments made by the interim final official seal and authorized by the State clerk, teller, or bookkeeper of the rule to §§ 7.2001 and 7.2003 with to administer oaths, also may administer national bank from acting as proxy for conforming and technical changes. The the oath. However, the statute governing shareholder voting. Section 7.2002 final rule replaces references in § 7.2003 the oath of bank directors, 12 U.S.C. 73, codifies this prohibition in OCC to ‘‘corporate governance procedures’’ to requires that the oath be taken before a regulations and provides that any ‘‘corporate governance provisions,’’ to notary public or any other State person or group of persons, except the conform to the change in this authorized officer other than an officer bank’s officers, clerks, tellers, or terminology made by § 7.2000 of this of the director’s bank. Further, OCC bookkeepers, may be designated to act final rule. The final rule also makes a instructions conform to the statute by as proxy. The OCC proposed to amend technical change to the heading to add requiring the director to take the oath this section to clarify that the proxy national banks. The OCC notes that it is before a notary public or other referenced in the section is for not imposing any new risk management authorized State official.141 The final shareholder voting, as provided in the standards for telephonic or electronic rule corrects the regulation to require statute. The OCC received no comments meetings though this final rule. that this oath be administered by a on this clarification and adopts it as Specifically, § 7.2003(c) permits a notary public or any person having an proposed with technical changes. The national bank to provide for telephonic official seal and authorized by the State final rule revises the section heading or electronic participation at to administer oaths, other than an and rule text to clarify that this shareholder meetings. Further, officer of the national bank, thereby provision applies to national banks. The paragraph (c) requires a national bank to conforming this rule to the statute. OCC intends no substantive changes to have procedures for telephonic or Further, the final rule clarifies that the § 7.2002. electronic participation in shareholder State-authorized officer not a notary meetings. A national bank may choose National Bank Shareholder Meetings; may be a director of the bank, as may these procedures from several sources: Board of Directors Meetings (§ 7.2003) the notary public under the current rule, (1) The corporate governance provisions The OCC is finalizing changes it made as long as that person is not also an it has elected to follow pursuant to officer of the bank. to part 7 in an interim final rule entitled § 7.2000(b), if those elected procedures Director, Shareholder, and Member include telephonic or electronic Quorum of a National Bank Board of Meetings, published in the Federal participation procedures; (2) the Directors; Proxies Not Permissible Register on May 28, 2020.138 Among Delaware General Corporation Law; or (§ 7.2009) other things, this interim final rule (3) the Model Business Corporation Act. Section 7.2009 requires a national amended § 7.2003 to permit national However, these procedures must not be bank to provide in its articles of banks to provide for telephonic or inconsistent with applicable Federal association or bylaws that a quorum of electronic participation at shareholder statutes and regulations and safety and the board of directors is at least a and board of directors meetings.139 To soundness. This provision ensures that majority of the entire board then in accomplish this, the OCC combined a national bank has procedures in place office. Section 7.2009 also prohibits former 12 CFR 7.2001, which provided for remote participation at shareholder bank officers from voting by proxy. The for procedures for notifying meetings even if the corporate OCC did not propose any substantive shareholders of shareholder meetings, governance law it has elected to follow changes to this section. However, the into former § 7.2003, which provided does not contain procedures for remote OCC received one comment on § 7.2009 the rule for annual shareholder meetings participation at shareholder meetings or requesting that the OCC revise it to that fall on a holiday; added new if it has not elected to follow any allow national banks to adopt the telephonic and electronic participation particular corporate governance law quorum requirements of the law of the language to 12 CFR 7.2003 as new pursuant to § 7.2000(b). To inform relevant State, the Delaware General paragraphs (c) and (d); and retitled shareholders of its choice of procedures, Corporate Law, or the Model Business § 7.2003 as ‘‘Shareholder meetings; this paragraph requires the national Corporation Act. Both the Model Board of directors meetings.’’ Former bank to indicate the use of these Business Corporation Act and Delaware § 7.2001 became § 7.2003(a). Former procedures in its bylaws. General Corporate Law permit corporate § 7.2003 become § 7.2003(b). Combining Paragraph (d) of § 7.2003 provides boards to deem one third of all members §§ 7.2001 and 7.2003 put all that a national bank may provide for sufficient to establish a quorum. telephonic or electronic participation at The OCC disagrees with this 138 85 FR 31943 (May 28, 2020). This rule was a meeting of its board of directors. This comment. The current requirement in effective May 28, 2020. provision codifies OCC Interpretive 139 The OCC finalized amendments made by this 140 interim final rule to part 5 in its recent Licensing Letter No. 860 and makes the 141 See ‘‘General Instructions—Oath of Bank Amendments final rule. See 85 FR 80404 (Dec. 11, Directors’’ at www.occ.gov/static/licensing/ 2020). 140 OCC Interpretive Letter No. 860 (Apr. 5, 1999). Instructions-Oaths-NB.pdf.

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§ 7.2009 that at least a majority of the One commenter also suggested that individual appointed to oversee the Board meet to constitute a quorum is the OCC repeal § 7.2010 in its entirety national bank’s day-to-day activities.144 designed to ensure the safety and or revise it to replace the current text This change provides national banks soundness of bank operations. Any with a statement that the standards of with flexibility in employee titles and lesser quorum requirement could result conduct applicable to directors are management organization. The OCC in greater absenteeism in managing the governed by the law of the State elected notes that 12 U.S.C. 24(Fifth) provides affairs of the bank and enable a smaller by the bank or the Model Business national banks with the authority to set minority of directors to dictate the Corporation Act. The OCC is not the duties of their officers. National direction of corporate affairs, which including this suggested revision in the banks should ensure that their employee would heighten risks to safety and final rule. The OCC has not previously titles do not create unnecessary soundness. The OCC did not propose an interpreted directors to be subject only confusion. amendment to the quorum requirements to the standards of conduct established Second, the final rule removes the of § 7.2009 and declines to do so in this by the law of the State elected by the provision in § 7.2012 that states that a final rule. bank or the Model Business Corporation person other than the president may Act and doing so may conflict with serve as chief executive officer, and this National Bank Directors’ other statutory or regulatory standards person is not required to be a director Responsibilities (§ 7.2010) applicable to bank directors. of the bank. This provision is Twelve CFR 7.2010 provides that the President as Director of a National Bank unnecessary. The position of chief business and affairs of a bank shall be (§ 7.2012) executive officer is not referenced in managed by or under the direction of statute and, as indicated above, national Twelve U.S.C. 76 provides that the the board of directors and that boards of banks have discretion to set the duties president of the bank must be a member directors should refer to published OCC of their officers. Further, this provision of the board and be chairman thereof, guidance for additional information would conflict with the first revision to but that the board may designate a regarding responsibilities of directors. this section. Because function rather director in lieu of the president to be The OCC did not propose substantive than title govern under this amendment, chairman, who must perform duties as changes to § 7.2010. the final rule requires a chief executive assigned by the board. Section 7.2012 officer that serves the function of Two commenters discussed the codifies this statutory requirement in second sentence of § 7.2010, which president to be a member of the board. the OCC’s rules by providing that The OCC also is making a technical states that the board of directors should pursuant to 12 U.S.C. 76, the president change to the section heading not refer to OCC published guidance for of a national bank must be a member of included in the proposed rule to reflect additional information regarding the board of directors, but a director that fact that § 7.2012 applies only to responsibilities of directors. One other than the president may be elected national banks. commenter stated that the sentence chairman of the board. This section might be read as codifying guidance and further provides that a person other than Indemnification of National Bank and suggested that the referenced guidance the president may serve as the chief Federal Savings Association-Affiliated may be incorrect, inconsistent, or omit executive officer, and that this person is Parties (§§ 7.2014, 145.121) information that is germane to the not required to be a director of the bank. duties and responsibilities of bank The OCC proposed amending and When first proposing this rule, the OCC reorganizing § 7.2014, Indemnification directors. Another commenter stated acknowledged that it was adding this that the reference to guidance in of institution-affiliate parties (by second sentence to provide that a national banks), applying revised § 7.2010 should be revised to avoid person other than the president or a suggesting that guidance has the force of § 7.2014 to Federal savings associations, director may serve as chief executive and removing § 145.121, law. This commenter recommended that 143 officer of a bank. Indemnification of directors, officers the OCC revise § 7.2010 to delete the The OCC proposed two changes to second sentence and establish any and employees (by Federal savings this section and did not receive any associations). As discussed below, the specific legal standards regarding comments. As a result, the OCC is director responsibilities through the OCC is adopting § 7.2014 as proposed, adopting these changes to § 7.2012 as with a technical change to the section rulemaking process. The OCC notes that proposed. First, the final rule provides § 7.2010 only refers boards of directors heading. that the person serving as, or in the Section 7.2014 addresses to OCC guidance for additional function of, president of a national information and does not suggest that indemnification of institution-affiliated bank, regardless of title, must be a parties (IAPs) by national banks in cases guidance has the force of law nor that member of the board of directors. This the guidance contains all pertinent involving an administrative proceeding change aligns the regulation with the or civil action initiated by a Federal information. This guidance may be OCC’s view that the bank officer helpful to boards of directors by banking agency, as well as cases that do positions in 12 U.S.C. 76 and other not involve a Federal banking agency. discussing existing legal requirements provisions of the National Bank Act applicable to directors and, consistent Under § 7.2014(a), a national bank only refer to functions rather than required may make or agree to make with the Interagency Statement titles. If a national bank does not have Clarifying the Role of Supervisory indemnification payments to an IAP an individual serving in the position of with respect to an administrative Guidance,142 outlining the OCC’s president but does have another officer supervisory expectations. proceeding or civil action initiated by a serving the function of president, the Federal banking agency if those individual serving in the function of payments are reasonable and consistent 142 Interagency Statement Clarifying the Role of president must be a member of the with the requirements of 12 U.S.C. Supervisory Guidance, https://www.occ.gov/news- board of directors. The person serving issuances/news-releases/2018/nr-ia-2018-97a.pdf (Sept. 11, 2018). The OCC, Federal Deposit the function of president is generally the 144 See OCC, ‘‘The Director’s Book: Role of Corporation (FDIC), and Federal Reserve Board Directors for National Banks and Federal Savings issued a proposed rule codifying this statement on 143 60 FR 11924 (March 3, 1995). This rule was Associations’’ (November 2020) available at November 5, 2020. 85 FR 70512. finalized in 1996. 61 FR 4849 (Feb. 9, 1996). www.OCC.gov.

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1828(k) and the implementing provided such payments are consistent made is later determined not to be regulations thereunder. Pursuant to with safe and sound banking practices. entitled to the indemnification. section 1828(k), the FDIC may prohibit, Additionally, pursuant to Pursuant to § 145.121(f), an by regulation or order, any § 7.2014(b)(2), a national bank may association that has a bylaw in effect indemnification payment made with provide for the payment of reasonable relating to indemnification of its regard to an administrative proceeding premiums for insurance covering the personnel must be governed solely by or civil action instituted by the expenses, legal fees, and liability of that bylaw, except that its authority to appropriate Federal banking agency that IAPs to the extent that these costs could obtain insurance must be governed by results in a final order under which the be indemnified under administrative § 145.121(d), which, as described above, IAP: (1) Is assessed a civil money proceedings or civil actions not initiated penalty; (2) is removed or prohibited authorizes the purchase of by a Federal banking agency, as indemnification insurance unless the from participating in conduct of the provided in § 7.2014(b)(1). affairs of the insured depository insurance pays for losses created by Twelve CFR 145.121 addresses willful or criminal misconduct. Section institution; or (3) is required to take indemnification of directors, officers 145.121(g) states that the certain affirmative actions in regards to and employees by Federal savings 145 indemnification provided for in an insured depository institution. associations. Section 145.121(b) requires § 145.121 for Federal savings Section 1828(k) defines a Federal savings association to associations is subject to and qualified ‘‘indemnification payment’’ to mean any indemnify any person against whom an by 12 U.S.C. 1821(k), which addresses payment (or any agreement to make any action is brought or threatened because payment) by any insured depository that person is or was a director, officer, personal liability for directors and institution to pay or reimburse an IAP or employee of the association. This officers in certain civil actions. for any liability or legal expense with indemnification is subject to the The OCC proposed adding Federal regard to any administrative proceeding requirements of § 145.121(c) and (g). savings associations to § 7.2014 so that or civil action instituted by the Section 145.121(c) provides that both charters would be required to appropriate Federal banking agency that indemnification only may be made comply with § 7.2014 and removing results in a final order under which the available to the IAP if (1) there is a final § 145.121. Because § 7.2014 applies to IAP: (1) Is assessed a civil money judgment on the merits in the IAP’s IAPs as well as officers, directors, and penalty; (2) is removed or prohibited favor; or (2) in the case of settlement, employees, and § 145.121 applies only from participating in conduct of the final judgment against the IAP, or final to officers, directors and employees, this affairs of the insured depository judgment in the IAP’s favor other than amendment enlarges the scope of institution; or (3) is required to take on the merits, if a majority of the indemnification rules for Federal certain affirmative actions in regards to disinterested directors of the Federal savings associations. As a result, the an insured depository institution.146 savings association determine that the OCC’s indemnification rules also would Section 7.2014(a) defines ‘‘institution- IAP was acting in good faith. It also affiliated party’’ by reference to 12 apply to certain Federal savings provides that the association give the association controlling shareholders, U.S.C. 1813(u). OCC at least 60 days’ notice of its Section 7.2014(b)(1) permits a independent contractors, consultants, intention to indemnify an IAP and national bank to indemnify IAPs for and other persons identified in 12 provides that the association may not damages and expenses, including the U.S.C. 1813(u). The OCC received no advancement of legal fees and expenses, indemnify the IAP if the OCC advises comments on this integration of Federal in cases involving an administrative the savings association in writing that savings associations into § 7.2014 and proceeding or civil action that is not the OCC objects. Section 145.121(g) therefore adopts this integration as initiated by a Federal banking agency in makes the indemnification subject to 12 proposed. accordance with the law of the State in U.S.C. 1821(k). Pursuant to § 145.121(d), a Federal The OCC also proposed other which the main office of the bank is amendments to § 7.2014. First, the OCC located, the law of the State in which savings association may obtain insurance to protect it and its directors, proposed amending current the bank’s holding company is § 7.2014(b)(1), redesignated as incorporated, or the relevant provisions officers, and employees from potential losses arising from claims for acts § 7.2014(a) and retitled, to provide that of the Model Business Corporation Act State law on indemnification may apply or Delaware General Corporation Law, committed in their capacity as directors, officers, or employees. However, a to all administrative proceedings or civil actions for which an IAP can be 145 In prohibiting such payments, the FDIC may Federal savings association may not take into account several factors listed in the obtain insurance that provides for indemnified, not just actions that are statute, such as whether there is a reasonable basis payment of losses incurred as a initiated by a person or entity not a to believe the IAP has committed fraud, breached consequence of willful or criminal Federal banking agency as under the a fiduciary duty, or committed insider abuse; is current rule. This revision clarifies the substantially responsible for the insolvency of the misconduct. depository institution; has violated any Federal or Pursuant to § 145.121(e), if a majority application of State law on State banking law or regulation that has had a of the directors of a Federal savings indemnification to actions initiated by material effect on the financial condition of the association conclude that, in connection Federal banking agencies. However, institution; or was in a position of managerial or current § 7.2014(a), redesignated as fiduciary responsibility. See 12 U.S.C. 1828(k)(2). with an action, a person may become The FDIC has forbidden certain indemnification entitled to indemnification, the § 7.2014(b), would still apply. payments by regulation. See 12 CFR 359.1(l)(1) directors may authorize payment of Specifically, under redesignated (definition of ‘‘prohibited indemnification § 7.2014(b), with respect to proceedings payment’’); 12 CFR 359.3 (forbidding prohibited reasonable costs and expenses arising indemnification payments, except as provided in from the defense or settlement of the or civil actions initiated by a Federal part 359). action. Before making advance payment banking agency, a national bank or 146 See 12 U.S.C. 1828(k)(5)(A); see also 12 U.S.C. of expenses, the savings association is Federal savings association only may 1818(b)(6) (defining affirmative actions that an IAP required to obtain an agreement that the make or agree to make indemnification may be required to take in regard to insured payments to an IAP that are reasonable depository institutions for purposes of section savings association will be repaid if the 1828(k)(5)(A)). person on whose behalf payment is and consistent with the requirements of

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section 1828(k) and implementing OCC disagrees with this comment. OCC extent the bank’s or savings regulations thereunder.147 determinations of whether association’s expenses have been The OCC also proposed a technical indemnification payments to IAPs are reimbursed by an insurance policy or change to redesignated § 7.2014(a). As ‘‘consistent with safety and soundness’’ fidelity bond.151 This requirement is indicated above, the current rule states are made on a case-by-case basis based similar to the requirement in that in cases involving an administrative on the specific facts and circumstances § 145.121(e) currently applicable to proceeding or civil action not initiated of a particular case, and do not depend Federal savings associations and by a Federal banking agency, a national on State law. In the absence of specific therefore will not impose any additional bank may indemnify an IAP in facts and circumstances, the OCC burdens on Federal savings associations. accordance with the law of the State in declines to expound in the final rule Further, FDIC regulations,152 State which the main office of the bank is upon how the OCC would evaluate the law,153 and the Model Business located, the law of the State in which safety and soundness of indemnification Corporation Act 154 contain similar the bank’s holding company is payments to IAPs. requirements for IAPs to reimburse incorporated, or the relevant provisions The commenter also suggested that institutions for funds to which they are of the Model Business Corporation Act the OCC include in the final rule under later found not to be entitled. As most or Delaware General Corporation Law, redesignated § 7.2014(a) a process for national banks are subject to the FDIC’s provided such payments are consistent appealing the OCC’s invalidation of indemnification regulations 155 or have with safe and sound banking practices. indemnification payments or an elected under 12 CFR 7.2000(b) to Because these sources of law are indemnification agreement on safety follow State corporate law imposing identical to the law a national bank may and soundness grounds. The OCC did reimbursement requirements for elect to follow pursuant to current not propose an appeals process, and advancement of funds, the OCC believes § 7.2000(b) or the law a Federal savings therefore is not including one in the that this change will not impose any association may elect to follow pursuant final rule. If a national bank or Federal additional burden on national banks to current § 5.21 or § 5.22, the OCC savings association disputes an OCC and will merely codify existing proposed to replace the language on invalidation of an indemnification practices. This change also will ensure sources of State law in this provision payment or agreement, it may file an that national banks, and Federal savings with a statement that the bank or appeal with the OCC pursuant to the associations, do not provide 149 savings association may indemnify an OCC’s Bank Appeals Process. indemnification to IAPs that is IAP for damages and expenses in For the reasons discussed above, the ultimately in contravention of the accordance with the law of the State the OCC adopts redesignated § 7.2014(a) as statutory limits of section 1828(k). bank or savings association has proposed. designated for its corporate governance Second, the OCC proposed amending One commenter suggested that the under the provisions of § 7.2000, § 5.21, § 7.2014(b)(2), redesignated as OCC confirm in the final rule that the or § 5.22, as applicable. Because the § 7.2014(d), to allow a national bank or written agreement required under OCC is enlarging the choice of law for Federal savings association to provide § 7.2014(c) may provide for the both national banks and Federal savings for the payment of reasonable insurance reimbursement of expenses, in addition associations in this final rule, this cross- premiums in connection with all actions to damages and other costs. The reference incorporates these new State involving an IAP that could be commenter noted that proposed law options.148 indemnified under § 7.2014, whether or § 7.2014(c) implies that expenses may One commenter suggested that the not initiated by a Federal banking be covered by a written agreement, OCC clarify in the final rule under agency. The OCC received no comments because it notes that the written redesignated § 7.2014(a) how the OCC on this change and adopts it as agreement may cover any portion of the would evaluate whether proposed. The OCC believes this change indemnification payment ‘‘except to the indemnification payments to IAPs are will resolve confusion regarding how extent that the bank’s or savings ‘‘consistent with safety and soundness.’’ current § 7.2014(b)(2) is applied. This association’s expenses have been For example, the commenter suggested change also will better align OCC reimbursed by an insurance policy or that the OCC confirm that the types of regulations on the payment of insurance fidelity bond.’’ The OCC does not indemnification permissible under premiums with the FDIC’s regulations believe that the final rule creates any Delaware General Corporation Law and 12 U.S.C. 1828(k).150 uncertainty regarding whether the generally would be permissible for Third, the OCC proposed adding a written agreement may provide for the national banks and Federal savings new paragraph (c) to require a national reimbursement of expenses, in addition associations, except where such bank or Federal savings association, to damages and other costs. As the payment would introduce safety and before advancing funds to an IAP under commenter notes, and the OCC agrees, soundness risk by measurably reducing § 7.2014, to obtain a written agreement the written agreement may cover any bank capital and/or liquidity levels. The that the IAP will reimburse the bank or portion of the indemnification payment savings association for any portion of ‘‘except to the extent that the bank’s or 147 The OCC also proposed to move the cross- indemnification that the IAP is savings association’s expenses have reference to the definition of IAP in redesignated ultimately found not to be entitled to been reimbursed by an insurance policy § 7.2014(b) to redesignated paragraph (a) and to under 12 U.S.C. 1828(k) and make stylistic changes to the wording of 151 redesignated § 7.2014(b). implementing regulations, except to the National banks are required to purchase fidelity coverage by 12 CFR 7.2013. 148 As explained supra, the OCC is amending 152 § 7.2000 to also allow national banks to follow the 149 Information about the OCC’s Bank Appeals See 12 CFR 359.5(a)(4). corporate governance provisions of the law of any Process is available at occ.gov. 153 See, e.g., 8 Del. C. section 145(e); Utah Code State in which any branch of the bank is located 150 The FDIC’s implementing regulations under section 16–10a–904; 805 Ill. Comp. Stat. 5/8.75(e); or where a holding company of the bank is section 1828(k), 12 CFR part 359, explicitly allow see also N.Y. Bus. Corp. Law section 725(a) incorporated even if the holding company is later the payment of insurance premiums in anticipation (requiring repayment, but not explicitly requiring a eliminated or no longer controls the bank and the of actions brought by a Federal banking agency, written agreement). national bank is not located in that State. The final provided the insurance is not used to reimburse the 154 See Model Bus. Corp. Act section 8.53(a). rule makes this same change to §§ 5.21 and 5.22 for cost of a judgment or civil monetary penalty. See 155 Federal savings associations are also subject to Federal savings associations. 12 CFR 359.1(l)(2). the FDIC’s indemnification regulations.

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or fidelity bond.’’ The OCC therefore at 12 U.S.C. 1813(u), and thus § 7.2014 national banks also may incorporate adopts § 7.2014(c) as proposed. applies not only to officers, directors, State indemnification law, they will be One commenter suggested that rather and employees of the bank, but also to subject to these State indemnification than amending § 7.2014, the OCC controlling shareholders, independent provisions as well. The OCC specifically should repeal the entire regulation and contractors, consultants, and other requested comment on whether, instead the comparable regulation for Federal persons identified in 12 U.S.C. 1813(u). of relying on State law, the final rule savings associations, § 145.121. The The OCC therefore has not made any should include the requirement from commenter noted that 12 CFR part 359 changes to the final rule in response to § 145.121 that, in the case of settlement, and 12 U.S.C. 1828(k) already govern these comments. final judgment against the IAP, or final indemnification to IAPs in The OCC believes that revised judgment in the IAP’s favor other than administrative and court proceedings § 7.2014 incorporates the provisions of on the merits, a majority of the brought by a Federal banking agency; current § 145.121 that should be disinterested directors determine that and the proposed language in 12 CFR applicable to both national banks and the IAP was acting in good faith before 7.2000 makes the separate Federal savings associations, while the institution may indemnify the IAP. indemnification provisions relating to maintaining appropriate flexibility for One commenter replied to the OCC’s non-part 359 proceedings unnecessary. both types of institutions. As noted request for comment, and did not The OCC disagrees with the above, revised § 7.2014 will apply to support including this requirement in commenter’s suggestion. The OCC actions brought by a Federal banking the final rule. The commenter argued believes that having OCC-specific agency and actions not brought by a that this requirement is generally more regulations provides clarity for OCC- Federal banking agency, as in § 145.121, restrictive than typical State law and supervised banks and savings while retaining the statutory limits of may discourage qualified candidates associations. The OCC therefore has not section 1828(k).156 Revised § 7.2014 also from serving on the board of a national made any changes to the final rule in includes the reimbursement agreement bank or Federal savings association, and response to this comment. requirement, as in § 145.121(e). that there is no compelling public The commenter also suggested that, if However, the OCC did not propose to interest served by subjecting national the OCC does not repeal § 7.2014, the include in § 7.2014 the provision in bank or Federal savings association OCC should delete language in § 7.2014 § 145.121 that requires Federal savings directors to greater risk of personal that reserves the power of the OCC to associations to indemnify persons liability than directors of other overturn any bank board decision on against whom an action is brought corporations. The OCC agrees with the indemnification and advancement of under certain circumstances, such as if commenter, and therefore, the OCC is expenses. The OCC disagrees with this they are successful on the merits of the not including the requirement in the comment. The OCC must retain action,157 nor the provision requiring a final rule. supervisory authority to object to board vote to authorize indemnification The OCC also did not propose to indemnification payments if they under certain circumstances.158 In place include in § 7.2014 the provision in threaten the safety and soundness of the of these requirements, revised § 7.2014 § 145.121 that requires a 60-day prior institution. The OCC notes that it would permits Federal savings associations to notice to the OCC before making an only exercise this authority under those incorporate State law on indemnification because it believes this circumstances. The OCC therefore has indemnification. Because State law provision is burdensome and not made any changes to the final rule governing indemnification generally unnecessary.161 However, the OCC in response to this comment. incorporates these aspects of current requested comment on whether the final This commenter also suggested that, if § 145.121, the OCC expects that Federal rule should include this prior notice the OCC does not repeal § 7.2014, the savings associations will continue to be requirement and, if so, what benefits OCC should include the right to subject to similar provisions governing prior approval would provide that advance expenses in both matters indemnification as before. For example, would outweigh any additional subject to 12 CFR part 359 and those State law generally requires mandatory regulatory burden. One commenter that are not. The commenter further indemnification if an employee is replied to the OCC’s request for suggested that the OCC should expand successful on the merits,159 as well as a comment and did not support including coverage for indemnification unrelated board vote authorizing indemnification this prior-notice requirement. The to part 359-type matters to those who in almost all circumstances.160 Because commenter argued, and the OCC agrees, may not fall under the definition of that the regulatory burden of such a IAPs, noting that State statutes typically 156 Section 145.121(g) subjects and qualifies the notice would outweigh any benefit. indemnification provided for by current § 145.121 cover potentially other individuals. The Therefore, the OCC is not including this OCC also disagrees with these to 12 U.S.C. 1821(k). In contrast, current § 7.2014 explicitly subjects national bank indemnification to requirement in the final rule. comments. Section 7.2014 already the restrictions of 12 U.S.C. 1828(k). Section includes the right to advance expenses 1828(k) directly addresses indemnification and is Restricting Transfer of National Bank in both matters subject to 12 CFR part applicable to any insured depository institution. Stock and Record Dates; Stock 359, which implements 12 U.S.C. See 12 U.S.C. 1828(k)(5)(A). Section 1821(k) Certificates (§ 7.2016) addresses personal liability for directors and 1828(k), and those that are not. As noted officers and is also applicable to any insured Facsimile Signatures on Bank Stock above, § 7.2014 addresses depository institution. Both of these statutes apply, Certificates (§ 7.2017) indemnification of IAPs by national and will continue to apply to national banks and banks in cases involving an Federal savings associations but proposed § 7.2014 Lost Stock Certificates (§ 7.2018) retains the citation to section 1828(k) as the more administrative proceeding or civil relevant citation for indemnification purposes. Sections 12 CFR 7.2016, 7.2017, and action initiated by a Federal banking 157 See § 145.121(b). 7.2018 contain specific requirements agency, as well as cases that do not 158 See § 145.121(c)(1)(ii)(C). related to national bank stock transfers involve a Federal banking agency. 159 See, e.g., 8 Del. C. 145(c); New York BCL and stock certificates. Many of these Further, the OCC believes the scope of section 723(a); 805 ILCS 5/8.75(c); Model Bus. Corp. requirements are mandated by 12 U.S.C. Act, section 8.52 (2016). the coverage for indemnification to IAPs 160 See, e.g., 8 Del. C. 145(d); New York BCL 52. However, some of these is appropriate and sufficiently broad. section 723(b); 805 ILCS 5/8.75(d); Model Bus. ‘‘IAP’’ has the same meaning as set forth Corp. Act, sections 8.53(c), 8.55 (2016). 161 See § 145.121(c)(2).

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requirements are outdated because holder of record of the stock; (3) the and the final rule removes § 7.2020 as national banks today rarely issue number and class of shares which the proposed. The OCC notes that removing physical stock certificates. certificate represents; (4) if the bank § 7.2020 would not limit the OCC’s Section 7.2016(a) states that, pursuant issues more than one class of stock, the authority over share repurchases. Share section 52, a national bank may impose respective rights, preferences, repurchases are considered reductions conditions on the transfer of its stock privileges, voting rights, powers, in capital and would continue to be reasonably calculated to simplify the restrictions, limitations, and subject to OCC and shareholder work of the bank with respect to stock qualifications of each class of stock approval under 12 U.S.C. 59 and 12 CFR transfers, voting at shareholders’ issued (unless incorporated by reference 5.46. meetings, and related matters and to to the articles of association); (5) protect the bank against fraudulent signatures of the president and cashier Capital Stock-Related Activities of a transfers. Consistent with the statute, of the bank, or such other officers as the National Bank (new § 7.2025) § 7.2016(b) allows a national bank to bylaws of the bank provide; and (6) the The OCC proposed new § 7.2025 to close its stock records for a reasonable seal of the bank. The OCC proposed to codify various OCC interpretations of period to ascertain shareholders for continue allowing banks to meet the the National Bank Act involving capital voting purposes. The board also may fix signature requirements of section 52 stock issuances and repurchases. The record dates, which should be through the use of electronic means or OCC received no comment on this new reasonable in proximity to the date by facsimiles, as is permitted by current section and adopts it as proposed. notice is given to shareholders of the § 7.2017. meeting. Section 7.2017 states that the Finally, the OCC proposed to remove Section 7.2025 explains the president and cashier of the bank, or § 7.2018 as unnecessary. Section 7.2018 shareholder approval requirements for other officers authorized by the bank’s states that if the bank’s articles of the issuance of authorized common bylaws, shall sign each stock certificate. association or bylaws do not provide for stock; the issuance, repurchase, and These signatures may be manual or replacing lost, stolen, or destroyed stock redemption of preferred stock pursuant facsimile and may be electronic. Each certificates, the bank may adopt to blank check procedures; and share certificate also must be sealed with the procedures under 12 CFR 7.2000. repurchase programs. Generally, an seal of the bank. Section 7.2000 generally permits increase or decrease in the amount of a To streamline OCC rules, the OCC national banks to adopt corporate national bank’s common or preferred proposed combining §§ 7.2016 and governance procedures 163 in stock is a change in permanent capital 7.2017 into one section, § 7.2016, that accordance with State law, to the extent subject to the notice and approval would apply to both stock transfers and not inconsistent with applicable Federal requirements of 12 CFR 5.46 and stock certificate requirements. The OCC laws and regulations or with bank safety applicable law.165 Section 7.2025(a) sets also proposed making OCC rules on and soundness. Therefore, this forth the general requirements for stock certificates more flexible. As noted provision is unnecessary. changes in permanent capital. above, section 12 U.S.C. 52 requires The OCC received no comments on Paragraphs (b) through (d) of § 7.2025 certain officers of the association to sign these changes to §§ 7.2016 and the provide more specific requirements for every bank stock certificate and for it to removal of §§ 7.2017 and 7.2018. shareholder approval of various types of be sealed with the seal of the Therefore, the OCC adopts these issuances and repurchases. Section association. However, banks now changes to § 7.2016 and removes 7.2025(e) identifies certain permissible generally hold stock in ‘‘book-entry’’ §§ 7.2017 and 7.2018 as proposed. The features for preferred stock. form, which is not a format that OCC also is making a technical change Issuance of previously approved and supports signatures or stamps. Although to the section heading not included in authorized common stock. The issuance section 52 places requirements on the proposed rule to reflect that fact that of common stock is governed by 12 physical stock certificates, the OCC does § 7.2016 applies only to national banks. U.S.C. 57, which provides that a not believe that the language of that Acquisition and Holding of Shares as national bank may, with the approval of section requires banks to actually issue Treasury Stock (§ 7.2020) the OCC, and by a vote of shareholders stock in certificated form. Notably, owning two-thirds of the stock of the section 52 also states that ‘‘[t]he capital The OCC proposed to remove 12 CFR bank, increase its capital stock to any stock of each association shall be . . . 7.2020. Section 7.2020 provides that a sum. The OCC has interpreted 12 U.S.C. transferable on the books of the national bank may repurchase its 57 to require a two-thirds shareholder association in such manner as may be outstanding shares and hold them as vote to amend the articles of association prescribed in the by-laws or articles of treasury stock as a capital reduction to increase the number of authorized association.’’ 162 This language allows under 12 U.S.C. 59 if the repurchase and shares.166 The OCC also has long banks to provide for book-entry transfer retention is for a ‘‘legitimate corporate interpreted section 57 to permit a purpose’’ and not for speculative in their by-laws or articles of national bank’s board of directors to purposes. The OCC issued § 7.2020 in association, even if this type of transfer issue common stock without obtaining 1996 as an exception to the provision in is incompatible with the use of additional shareholder approval at the 12 U.S.C. 83 that prohibited a national signatures and seals. Therefore, the OCC time of the issuance so long as the bank from being the ‘‘purchaser or proposed stating that a national bank issuance does not exceed the amount of holder’’ of its own shares. However, in may prescribe the manner in which its common stock previously approved and stock must be transferred in its by-laws 2000, Congress amended section 83 to remove this prohibition.164 Therefore, or articles of association. The OCC also 165 § 7.2020 is unnecessary. The OCC See generally 12 U.S.C. 51a, (preferred stock proposed specifying that a national bank issuance), 57 (increase in capital), and 59 (reduction that does issue stock in certificate form received no comments on this change of capital). must comply with the requirements of 166 See, e.g., Articles of Association, Charter, and section 52, including: (1) The name and 163 The proposed rule changed this terminology Bylaw Amendments, Comptroller’s Licensing in § 7.2000 to ‘‘corporate governance provisions.’’ Manual (June 2017), p. 3 (indicating that two-thirds location of the bank; (2) name and 164 Public Law 106–569, Title XII, section 1207(a), of a national bank’s shareholders must vote to 114 Stat. 3034 (American Homeownership and increase or decrease the authorized number of 162 See 12 U.S.C. 52, first paragraph. Economic Opportunity Act of 2000). common shares in the articles of association).

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authorized by shareholders.167 Section national bank to reduce capital, but it stock, if permitted by the corporate 7.2025(b) codifies this interpretation. does not specify when in the process the governance provisions adopted by the Specifically, paragraph (b) provides bank must obtain shareholder approval. bank under 12 CFR 7.2000. Paragraph that, in compliance with 12 U.S.C. 57, In Interpretive Letter 1162, the OCC (d) also provides that, to satisfy the a national bank may issue common determined that the holders of two- shareholder approval requirement of 12 stock up to an amount previously thirds of a national bank’s shares may U.S.C. 59, the repurchase program must approved and authorized in the national approve in advance redemptions of be approved in advance by the holders bank’s articles of association by holders blank check preferred stock by voting to of two-thirds of the national bank’s of two-thirds of the national bank’s amend the articles of association to shares, including through an shares without obtaining additional authorize the issuance and redemption amendment to the national bank’s shareholder approval for each of blank check preferred shares.170 articles of association that authorizes subsequent issuance within the Section 7.2025(c) codifies these the board of directors to implement authorized amount. interpretations and permits blank check share repurchase programs from time to Issuance, repurchase, and redemption procedures, if approved in advance by time under board-determined of preferred stock pursuant to certain the bank’s shareholders, that authorize parameters that can limit the frequency, procedures. Twelve U.S.C. 51a requires the issuance, repurchase, and type, aggregate limit, or purchase price a majority of shareholders vote to redemption of preferred stock without of repurchases. approve a national bank’s issuance of additional shareholder approval at the Preferred stock features. Section preferred stock. However, the statute time of issuance, repurchase, or 7.2025(e) clarifies that a national bank does not specify when in the process the redemption, if certain conditions are may issue and maintain noncumulative bank must obtain shareholder approval. met. Paragraph (c) provides that, subject preferred stock. This provision codifies In OCC Interpretive Letter 921, the OCC to the requirements of 12 U.S.C. 51a, a longstanding OCC interpretation that determined that a national bank could 51b, and 59, a national bank may adopt 12 U.S.C. 51b, by its terms, describes adopt, subject to required shareholder procedures to authorize the board of limitations on the portion of the approval, a provision in its articles of directors to issue, determine the terms preferred stock dividend which may be association or an amendment to its of, repurchase, or redeem one or more cumulative. It does not require that articles authorizing the bank’s board of series of preferred stock, if permitted by preferred stock dividends must always directors to issue preferred stock using the corporate governance provisions be cumulative.171 Specifically, blank check procedures (‘‘blank check adopted by the bank under 12 CFR § 7.2025(e) provides that a national preferred stock’’).168 Blank check 7.2000. This provision further provides bank’s preferred stock may be preferred stock refers to preferred stock that, to satisfy the shareholder approval cumulative or non-cumulative and may for which the board is empowered to requirements of 12 U.S.C. 51a and 59, or may not have voting rights on one or issue and determine the terms of shareholders must approve the adoption more series. authorized and unissued preferred of these procedures in advance through Subpart C—National Bank and Federal stock. To be permissible, blank check an amendment to the national bank’s Savings Association Operations preferred stock must be permitted by the articles of association, and that any corporate governance procedures amendment that authorizes both the National Bank and Federal Savings adopted by the bank under § 7.2000.169 issuance and the repurchase and Association Operating Hours and The OCC also determined that redemption of shares must be approved Closings (§ 7.3000) shareholders’ adoption or approval of a by holders of two-thirds of the national The OCC proposed to amend § 7.3000, blank check preferred stock article bank’s shares. National bank hours and closings, to constitutes the shareholder action Share repurchase programs. In include Federal savings associations, to required by 12 U.S.C. 51a and 51b to Interpretive Letter 1162, the OCC update it, and to make technical and issue and establish the terms of determined that the shareholder clarifying changes. The OCC received preferred stock. The subsequent approval requirement in 12 U.S.C. 59 one comment on § 7.3000, in support of issuance of the preferred stock within may be satisfied by a two-thirds the proposed updates to the types of the authorized limits would not require shareholder vote approving an emergency conditions that may result in additional shareholder approval. amendment to the bank’s articles of the declaration of a legal holiday. Interpretive Letter 921 did not association authorizing the board of Therefore, the OCC adopts the specifically address blank check directors to implement share repurchase amendments to § 7.3000 as proposed, preferred procedures that include the programs. A share repurchase program with technical changes to the section authority, and the shareholder action authorizes the board of directors to and paragraph (a) headings. required, to repurchase and redeem repurchase the national bank’s common Twelve U.S.C. 95(b)(1) specifically blank check preferred stock. or preferred stock from time to time authorizes the Comptroller to designate The redemption or repurchase of under board-determined parameters that a legal holiday because of emergency preferred stock is a reduction in capital. can limit the frequency, type, aggregate conditions occurring in any State or part Twelve U.S.C. 59 requires the approval limit, or purchase price of repurchases, of a State for national banks located in of two-thirds of shareholders for a without obtaining additional shareholder approval at the time the 171 In part, section 51b provides that preferred 167 A previous version of § 5.46 (1981) provided shares are repurchased. Section shareholders ‘‘shall be entitled to receive such that shareholder approval would not be required to 7.2025(d) codified this interpretation by cumulative dividends . . . as may be provided in increase common stock through the issuance of a the articles of association . . . and no dividends class of common up to an amount previously providing that, subject to the shall be declared or paid on common stock until approved by shareholders. Subsequent amendments requirements of 12 U.S.C. 59, a national cumulative dividends on preferred stock have been to § 5.46, which the OCC intended to simplify 12 bank may establish a program for the paid in full . . . .’’ The OCC has previously CFR part 5, omitted this language but did not repurchase, from time to time, of the interpreted section 51a as providing national banks change this interpretation. with broad authority to issue preferred stock, 168 OCC Interpretive Letter No. 921 (Dec. 13, national bank’s common or preferred including preferred stock bearing noncumulative 2001). dividends, notwithstanding the language of section 169 The final rule changes this terminology in 170 OCC Interpretive Letter No. 1162 (July 6, 51b. See OCC Letter from Martin Goodman, OCC § 7.2000 to ‘‘corporate governance provisions.’’ 2018). Assoc. Ch. Couns. (Oct. 3, 1977).

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that State or affected area. Section As proposed, in addition to adding temporarily closes pursuant to this 95(b)(1) also provides that when a State Federal savings associations, the final provision, it should notify the OCC of or State official authorized by law rule clarifies and updates the emergency such temporary closure as soon as designates any day as a legal holiday for closing provisions of § 7.3000. First, the feasible. This provision provides ceremonial or emergency reasons, that final rule clarifies that § 7.3000 also additional flexibility to OCC-regulated day is a legal holiday and a national applies to Federal branches and institutions during emergency bank located in that State or affected agencies of foreign banks. Although conditions and codifies similar language part of the State may close or remain current § 7.3000 applies to Federal currently included in the OCC’s open unless the Comptroller directs branches and agencies pursuant to Licensing Manual.174 otherwise by written order. Section section 4(b) of the International Banking Seventh, the final rule clarifies in 7.3000 implements this statutory Act, 12 U.S.C. 3102(b), the OCC believes § 7.3000(c) that a State legal holiday provision. Specifically, current it is appropriate to specify this may be for the entire State or part of the § 7.3000(b) provides that when the application in the rule.173 State, as indicated in 12 U.S.C. 95(b)(1). Comptroller, a State, or a legally Second, the final rule clarifies that the Eighth, as provided in the statute, the authorized State official declares a day Comptroller may declare ‘‘any day’’ a final rule provides in § 7.3000(c) that a legal holiday due to emergency legal holiday, instead of ‘‘a day,’’ to the Comptroller may by written order conditions, a national bank may more accurately reflect the statutory direct the affected institution to close or temporarily limit or suspend its language and to clarify that the remain open during a State legal holiday operations at its affected offices. Comptroller may declare more than one declared for ceremonial reasons, as with Alternatively, the bank may continue its day due to the emergency condition as a State legal holiday declared due to an operations, unless the Comptroller a legal holiday. emergency. Finally, the final rule adds a new directs otherwise by written order. This Third, the final rule amends paragraph, § 7.3000(e), to provide a rule provides that emergency conditions § 7.3000(b) to state that emergency definition of ‘‘State’’ that is consistent include natural disasters and civil and conditions may be ‘‘caused by acts of with the definition in 12 U.S.C. 95(b)(2). municipal emergencies, such as severe nature or of man.’’ This amendment mirrors the language in 12 U.S.C. Also as proposed, the final rule also flooding or a power emergency declared makes a number of technical changes to by a local power company or 95(b)(1) and clarifies the broad scope of possible emergency conditions that § 7.3000. The final rule replaces the government requesting that businesses word ‘‘country’’ with ‘‘United States’’ in in the affected area close. Section could justify a legal holiday. Fourth, the final rule updates the the phrase describing affected 7.3000(c) states that a State or a legally types of emergency conditions listed in geographic area to make this phrase authorized State official may declare a the rule to include disasters other than more precise; deletes the superfluous day a legal holiday for ceremonial natural disasters, public health or safety citation to 12 U.S.C. 95 in § 7.3000(b); reasons and provides that when a State emergencies, and cyber threats or other and deletes the superfluous first legal holiday is declared for ceremonial unauthorized intrusions, and updates sentence of current § 7.3000(c), which reasons, a national bank may choose to the list of examples to include states that a State or a legally authorized remain open or to close. Section pandemics, terrorist attacks, and cyber- State official may declare a day a legal 7.3000(d) provides that a national bank attacks on bank systems. holiday for ceremonial reasons. should assure that all liabilities or other Fifth, the final rule provides that the In making these changes, the OCC is obligations under the applicable law Comptroller may issue a declaration of reorganizing § 7.3000(b) and (c) so that due to the bank’s closing are satisfied, a legal holiday in anticipation of the all provisions relating to Comptroller e.g., notice to depositors about funds emergency condition, in addition to at declared legal holidays for emergency availability pursuant to 12 CFR the time of the emergency or soon conditions are in § 7.3000(b) and all 229.13(g)(4). thereafter. This codifies the current provisions related to State declared legal There is no equivalent statute or practice of the Comptroller in most holidays for emergency and ceremonial corresponding regulation for Federal cases, which permits national banks, reasons are in § 7.3000(c). This savings associations. However, a former Federal savings associations, and reorganization more clearly sets forth OTS regulation at 12 CFR 510.2(b) Federal branches and agencies to better the standards for Comptroller and State permitted the OTS to waive or relax any plan for the possible closing. declared legal holidays and corresponds limitations pertaining to the operations Sixth, the final rule provides that in better with the statutory text. of a Federal savings associations in any the absence of a Comptroller declaration Section 7.3000 also provides, in area affected by a determination by the of a bank holiday, a national bank, paragraph (a), that a national bank’s President of the United States that a Federal savings associations, or Federal board of directors should review its major disaster or emergency had branch or agency may choose to banking hours and, independently of occurred. Amending § 7.300 to include temporarily close offices in response to any other bank, take appropriate actions Federal savings associations clarifies for an emergency condition. If a bank, to establishing a schedule of its banking these institutions how a legal holiday is savings association, or branch or agency hours. As proposed, the final rule declared and the implications of a legal updates this provision by replacing holiday declaration, as well as provide (charging the OCC with assuring the safety and ‘‘banking hours’’ with ‘‘hours of consistency between national bank and soundness of institutions subject to its jurisdiction). operations for customers.’’ The final Federal savings association operations 173 As indicated previously in this preamble, rule also makes technical corrections to 172 section 4(b) of the International Banking Act, 12 on legal holidays. U.S.C. 3102(b), provides that the operations of a the section and paragraph heading to foreign bank at a Federal branch or agency shall be reflect this change in terminology. 172 We note that the Comptroller is directed under conducted with the same rights and privileges as a Furthermore, the final rule includes section 4 of the HOLA (12 U.S.C. 1463(a)(1)(A)) to national bank at the same location and shall be Federal savings associations and Federal provide for the ‘‘safe and sound operation’’ of subject to all the same duties, restrictions, penalties, Federal savings associations. The OTS relied on this liabilities, conditions, and limitations that would branches and agencies in this provision. HOLA authority when it issued § 510.2(b) (see 54 apply under the National Bank Act to a national FR 49411, at 49456 (Nov. 30, 1989) and this final bank doing business at the same location. See also 174 See Comptroller’s Licensing Manual, Branch rule furthers that objective. See also 12 U.S.C. 1(a) 12 CFR 28.13. Closings (June 2017).

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Because Federal branches and agencies denied those provisions by their rulemaking and, if practical, in typically do not have a board of enabling act. The OCC notes that the conjunction with a Federal Reserve directors, § 7.3000(a) provides that an proposal as well as the final rule do not Board review of Regulation MM. equivalent person or committee for a deny Federal mutual savings The same commenter indicated that, Federal branch or agency should review associations the benefit of State law. In while the right to vote shares above a that entity’s operating hours and take fact, as noted above in the preamble certain percentage limit and appropriate action to establish a discussion of § 7.2000, the final rule supermajority voting provisions may be schedule of operating hours for permits additional flexibility for Federal prohibited for national banks, these customers. savings associations with respect to a provisions normally are permitted for choice of corporate governance law to Federal savings associations. The Sharing National Bank or Federal allow parity with national banks. In commenter suggested that the OCC Savings Association Space and suggesting and adopting these changes, explicitly state these provisions are Employees (§ 7.3001) the OCC recognized the distinction permissible for Federal savings Section 7.3001 permits national banks between Federal savings associations associations. In response, the OCC notes and Federal savings associations to lease and national banks by considering that it has permitted certain anti- excess space on bank or savings choice of law issues for these different takeover and supermajority vote association premises to other charters separately. provisions for Federal savings businesses, share space jointly held Another commenter suggested the associations, either specifically with other businesses, offer its services OCC should explore further ways to provided by regulation or authorized by in space owned by or leased to other harmonize national bank and Federal the applicable State law, provided that businesses, and share employees when savings association regulations, any supermajority vote provisions are sharing space. The OCC proposed to add including potential Federal savings adopted by a percentage of the a cross-reference to redesignated association use of 12 U.S.C. 24 and 12 shareholder vote at least equal to the § 7.1024, National bank or Federal CFR part 24, to invest directly in public highest percentage that would be savings association ownership of welfare investments. The OCC regularly required to take any action under such property, in § 7.3001(a)(1) to clarify that reviews its regulations to determine provision.177 Also, the OCC generally the requirements of § 7.1024 apply to opportunities to harmonize Federal does not approve supermajority the sharing of office space and savings associations and national bank provisions that require approval of more employees pursuant to § 7.3001. The regulations, where appropriate. The than 80 percent of the voting shares.178 OCC did not receive any comments on OCC staff notes that 12 CFR 160.36 Electronic filings and procedures. One this change and adopts it as proposed. already permits Federal savings commenter encouraged the OCC to permit digital and remote filing Additional Issues and General associations to make de minimis procedures, such as electronic Comments investments in community development investments of the type permitted by 12 fingerprinting, digital signatures, and Application to Federal savings CFR part 24 for a national bank, and 12 virtual notarization. Specifically, the associations generally. The OCC U.S.C. 1464(c)(3)(A) and 12 CFR 160.30 commenter suggested that the received several comments on the authorize community development requirements for filing oaths of directors applicability of the proposed revisions investments by Federal savings should be modernized by permitting in the proposed rule to Federal savings associations. submissions in electronic form instead associations and, in particular, mutual A commenter suggested that any of the original hard copy; allowing the savings associations. One commenter attempt to revise the corporate notary to be a bank officer; and as an stated that national banks and Federal governance documents of a subsidiary alternative to notarization, allowing savings associations have different Federal stock savings association of a certification of oaths by the Secretary or enabling acts, and it is not clear that mutual holding company (MHC) should an Assistant Secretary of the financial applying national bank rules to Federal be harmonized with the Federal Reserve institution. The OCC notes that has savings associations is a good fit. The Board’s regulation on mutual holding already updated its licensing regulation OCC is cognizant of the fact that companies, Regulation MM.175 The to encourage the use of electronic national banks and Federal savings same commenter suggested that one of filings, including permitting digital associations have different enabling the principal problems with governance signatures in the OCC’s Central statutes and takes those differences into for mutual savings associations is a Application Tracking System (CATS). account when determining whether, and faulty assumption that depositor Further, the OCC is unable to update to when, to integrate the rules applicable members have an active interest in virtual notarization because notarization to national banks and Federal savings participating in the association’s is governed by State law. associations. In other areas, the OCC has corporate affairs.176 While the OCC Technical Changes retained different regulations for considered and is amending for Federal national banks and Federal savings In addition to the technical changes savings associations only the choice of associations, as dictated by provisions discussed above, the OCC proposed State law for the corporate governance of the National Bank Act and the HOLA, numerous technical changes throughout provisions, the OCC is not considering respectively. 12 CFR part 7. The OCC received no The same commenter noted that a general overhaul of all the Federal comments on these changes and adopts mutual associations are a distinct and mutual savings association governance them as proposed. Specifically, the final very different entity from a governance regulations in this rulemaking. The OCC rule: perspective and requested that mutual may consider revising other governance • Replaces the word ‘‘shall’’ with savings associations have the same provisions relating to Federal mutual ‘‘must,’’ ‘‘will,’’ or other appropriate leeway in making a choice of law as savings associations in a separate national banks. This commenter also 177 12 CFR 5.22(h). 175 12 CFR part 239. 178 stated that mutual savings associations See Articles of Association, Charters, and 176 Federal savings association mutual members Bylaw Amendments (Forms), Comptroller’s should not be denied the benefit of State have certain statutory and regulatory voting rights. Licensing Manual (June 19, 2017), Anti-Takeover law simply because national banks are See 12 U.S.C. 1464; 12 CFR 5.21. Provisions, p. 11.

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language, which is the more current rule Control No. 1557–0204. The OCC has Title of Information Collection: Bank writing convention for imposing an submitted the revised information Activities and Operations. obligation and is the recommended collection to OMB for review under Frequency: Event generated. drafting style of the Federal Register; section 3507(d) of the PRA (44 U.S.C. Affected Public: Businesses or other • Uniformly capitalizes the words 3507(d)) and section 1320.11 of the for-profit. ‘‘State’’ and ‘‘Federal’’ in conformance OMB’s implementing regulations (5 CFR Estimated number of respondents: with Federal Register drafting style; part 1320). 213. • Replaces the term ‘‘bank’’ and Total estimated annual burden: 586 ‘‘savings association’’ with ‘‘national Current Actions hours. bank’’ or ‘‘Federal savings association,’’ The information collection B. Regulatory Flexibility Act respectively, where appropriate; requirements are as follows: In general, the Regulatory Flexibility • Clarifies punctuation and update or • Tax Equity Finance Transactions— Act (RFA) (5 U.S.C. 601 et seq.) requires conform spelling of various terms; and Written requests are required to increase an agency, in connection with a final • Conforms paragraph heading style. the aggregate limit on tax equity finance rule, to prepare a Final Regulatory The OCC also is making technical transactions. Prior written notification Flexibility Analysis describing the changes to 12 CFR 5.30 to reflect to OCC is required for each tax equity impact of the rule on small entities changes made by the final rule. finance transaction. § 7.1025. (defined by the Small Business Specifically, the final rule removes drop • Payment Systems—Thirty (30) days Administration for purposes of the RFA boxes from the definition of branch in advance written notice is required to include commercial banks and § 5.30(d)(1)(i), pursuant to the change before joining a payment system that savings institutions with total assets of made by § 7.1027, and replaces the would expose the institution to open- $600 million or less and trust cross-reference to § 7.4003 in end liability. An after-the-fact written companies with total assets of $41.5 § 5.30(d)(i)(iii) with § 7.1027, as notice must be filed within 30 days of million or less). However, under section redesignated by this final rule. becoming a member of a payment 605(b) of the RFA, this analysis is not In addition, the OCC is making a system that does not expose the required if an agency certifies that the conforming change to the heading of institution to open-end liabilities with rule would not have a significant subpart B and technical changes to certain representations. Both notices economic impact on a substantial various section headings in subpart B to must include safety and soundness number of small entities and publishes better identify their application only to representations. § 7.1026. its certification and a short explanatory national banks. • Derivatives Activities—Thirty (30) statement in the Federal Register along Finally, the OCC is making technical days prior written notice is required with its rule. changes to 12 CFR 4.5 to replace before engaging in certain derivatives The OCC currently supervises outdated information on office locations hedging activities, expanding approximately 1,156 institutions and responsibilities. The OCC cross- derivatives hedging activities to include (commercial banks, trust companies, references 12 CFR part 4, subpart A, a new category of underlying, engaging Federal savings associations, and when using the term ‘‘appropriate OCC in certain customer-driven financial branches or agencies of foreign banks, supervisory office’’ in 12 CFR 7.1025 intermediation derivatives activities, collectively banks), of which 745 are and 7.1026. Twelve CFR part 4, subpart and expanding customer-driven small entities.179 Because the rule A, sets forth the physical addresses of financial intermediation derivatives applies to all OCC-supervised OCC offices, including supervisory activities to include a new category of depository institutions, the rule will offices. The OCC is updating one underlying. § 7.1030. affect all small OCC-supervised entities address in 12 CFR 4.5, Other OCC • State Corporate Governance— and thus, a substantial number of them. Supervisory Offices, to provide the Requests for OCC’s staff position on the However, almost all of the provisions in correct location of Midsize Bank ability of national bank to engage in the final rule clarify or codify existing Supervision (MBS) headquarters in 12 particular State corporate governance requirements, provide relief from CFR 4.5(a). The OCC also is amending provision must include name, citations, existing requirements, increase the description of MBS duties in 12 CFR discussion of similarly suited State flexibility, or reduce burden. One 4.5(a) to better reflect its current banks, identification of Federal banking provision in the final rule, § 7.2012, responsibilities. statutes and regulations, and analysis of which will require a person serving as, IV. Regulatory Analyses consistency with statutes, regulations, or in the function of, bank president, and safety and soundness. § 7.2000. regardless of title, to be a member of the A. Paperwork Reduction Act • Indemnification of institution- bank’s board of directors, could impose Certain provisions of the final rule affiliated parties—Administrative a new requirement on banks subject to contain ‘‘collection of information’’ proceeding or civil actions not initiated the prior notice requirement for any requirements within the meaning of the by a Federal banking agency—A written change in directors pursuant to 12 CFR Paperwork Reduction Act (PRA) of 1995 agreement that an IAP will reimburse 5.51. However, the number of banks that (44 U.S.C. 3501–3521). In accordance the institution for any portion of non- are subject to this prior notice with the requirements of the PRA, the reimbursed indemnification that the IAP requirement that do not currently have OCC may not conduct or sponsor, and is found not entitled to is required a respondent is not required to respond before advancing funds to an IAP. 179 Consistent with the General Principles of to, an information collection unless it Federal savings associations no longer Affiliation 13 CFR 121.103(a), the OCC counts the required to provide OCC prior notice of assets of affiliated financial institutions when displays a currently valid Office of determining if it should classify an institution as a Management and Budget (OMB) control indemnification. § 7.2014. small entity. The OCC used December 31, 2019, to number. • Issuing Stock in Certificate Form— determine size because a ‘‘financial institution’s The OCC reviewed the final rule and National banks must include certain assets are determined by averaging the assets reported on its four quarterly financial statements determined that it revises certain information, signatures and seal when for the preceding year.’’ See footnote 8 of the U.S. information collection requirements issuing stock in certificate form. Small Business Administration’s Table of Size previously cleared by OMB under OMB § 7.2016. Standards.

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a president serving on the board of believes that the overall effective date of F. Effective Date directors is limited. As a result, the final April 1, 2021 will provide OCC- The APA 183 requires that a rule will not impose new mandates on regulated institutions with adequate substantive rule must be published not more than a limited number of banks. time to comply with the rule. With less than 30 days before its effective Therefore, the OCC believes the costs respect to administrative compliance date, except for: (1) Substantive rules associated with the final rule, if any, requirements, the OCC has considered which grant or recognize an exemption would be minimal and thus the final the administrative burdens and the or relieve a restriction; (2) interpretative rule would not have a significant benefits of this final rule and believes rules and statements of policy; or (3) as economic impact on any small OCC- that any burdens are necessary for safety otherwise provided by the agency for supervised entities. For these reasons, and soundness and proper OCC good cause.184 Section 302(b) of the the OCC certifies that the final rule will supervision. As examples, the final rule, Riegle Community Development and not have a significant economic impact requires a person serving as, or in the Regulatory Improvement Act of 1994 on a substantial number of small entities function of, a bank president, regardless (RCDRIA) requires that regulations supervised by the OCC. Accordingly, a of title to be a member of the bank’s issued by a Federal banking agency 185 Final Regulatory Flexibility Analysis is board of directors (§ 7.2012) and imposing additional reporting, not required. contains notice requirements with disclosure, or other requirements on respect to payment system membership C. Unfunded Mandates Reform Act of insured depository institutions take and derivatives activities. The final 1995 effect on the first day of a calendar rule’s benefits include clarifying The OCC has analyzed the final rule quarter that begins on or after the date existing requirements, codifying of publication of the final rule, unless, under the factors in the Unfunded existing OCC interpretations and Mandates Reform Act of 1995 (UMRA), among other things, the agency guidance, removing unnecessary determines for good cause that the 2 U.S.C. 1501 et seq. Under this analysis provisions, and updating and regulations should become effective the OCC considered whether the final modernizing certain provisions. Further before such time.186 The April 1, 2021, rule includes a Federal mandate that discussion of the consideration by the effective date of this final rule meets may result in the expenditure by State, OCC of these administrative compliance both the APA and RCDRIA effective local, and tribal governments, in the requirements is found in other sections date requirements as it will take effect aggregate, or by the private sector, of of the final rule’s SUPPLEMENTARY at least 30 days after its publication date $100 million or more in any one year INFORMATION section. ($157 million as adjusted annually for of December 22, 2020 and on the first inflation). The UMRA does not apply to E. The Congressional Review Act day of a calendar quarter following regulations that incorporate For purposes of Congressional Review publication, April 1, 2021. However, the requirements specifically set forth in Act, the Office of Management and OCC notes that RCDRIA provides that law. Budget (OMB) makes a determination as insured depository institutions may As discussed above, the final rule to whether a final rule constitutes a comply with regulations that impose would not impose new mandates on ‘‘major’’ rule.180 If a rule is deemed a additional reporting, disclosure, or other more than a limited number of banks. ‘‘major rule’’ by OMB, the Congressional requirements before the regulation’s 187 Therefore, the OCC concludes that the Review Act generally provides that the effective date. final rule would not result in an rule may not take effect until at least 60 Pursuant to section 553(b)(B) of the expenditure of $157 million or more days following its publication.181 The APA, general notice and the opportunity annually by State, local, and tribal Congressional Review Act defines a for public comment are not required governments, or by the private sector. ‘‘major rule’’ as any rule that the with respect to a rulemaking when an As a result, the OCC finds that the final Administrator of the Office of ‘‘agency for good cause finds (and rule does not trigger the UMRA cost Information and Regulatory Affairs of incorporates the finding and a brief threshold. Accordingly, the OCC has not the OMB finds has resulted in or is statement of reasons therefor in the prepared the written statement likely to result in (1) an annual effect on rules issued) that notice and public described in section 202 of the UMRA. the economy of $100,000,000 or more; procedure thereon are impracticable, (2) a major increase in costs or prices for unnecessary, or contrary to the public D. Riegle Community Development and interest.’’ 188 As described in the final Regulatory Improvement Act of 1994 consumers, individual industries, Federal, State, or local government rule’s SUPPLEMENTARY INFORMATION Pursuant to section 302(a) of the agencies or geographic regions, or (3) a section, the final rule includes a number Riegle Community Development and significant adverse effects on of technical, clarifying, or conforming Regulatory Improvement Act of 1994 competition, employment, investment, amendments that the OCC did not (RCDRIA), 12 U.S.C. 4802(a), in productivity, innovation, or on the include in its proposed rule. Because determining the effective date and ability of United States-based these amendments are not substantive administrative compliance requirements enterprises to compete with foreign- and merely correct or clarify the rule, for new regulations that impose based enterprises in domestic and update the rule to reflect current law, or additional reporting, disclosure, or other export markets.182 fix citation and regulatory text format, requirements on insured depository OMB has determined that this final the OCC believes that public notice of institutions, the OCC must consider, rule is not a major rule. As required by these changes is unnecessary and consistent with principles of safety and the Congressional Review Act, the OCC therefore that it has good cause to adopt soundness and the public interest (1) will submit the final rule and other any administrative burdens that the appropriate reports to Congress and the 183 Codified at 5 U.S.C. 551 et seq. 184 final rule would place on depository Government Accountability Office for 5 U.S.C. 553(d). institutions, including small depository 185 For purposes of RCDRIA, ‘‘Federal banking review. agency’’ means the OCC, FDIC, and Board. See 12 institutions and customers of depository U.S.C. 4801. institutions and (2) the benefits of the 180 5 U.S.C. 801 et seq. 186 12 U.S.C. 4802(b). final rule. The has considered the 181 5 U.S.C. 801(a)(3). 187 12 U.S.C. 4802(b)(2). changes made by this final rule and 182 5 U.S.C. 804(2). 188 5 U.S.C. 553(b).

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these changes without notice and § 4.5 [Amended] described in paragraph (j)(2)(i)(B) of this comment. Furthermore, the final rule’s ■ 2. Amend § 4.5(a) by: section. If this election is selected, a amendment to 12 CFR part 4, subpart A, ■ a. Removing the second sentence; and Federal stock association must designate relates to the organization of the OCC. ■ b. Removing the phrase ‘‘1 South in its bylaws the provision or provisions Rules related to agency organization are Wacker Drive, Suite 2000, Chicago, IL from the body or bodies of law selected not subject to APA notice and 60606’’ and adding in its place the for its corporate governance provisions, comment.189 phrase ‘‘425 South Financial Place, and must file a notice containing a copy of such bylaws, within 30 days after List of Subjects Suite 1700, Chicago, IL 60605’’. adoption. The notice must indicate, 12 CFR Part 4 PART 5—RULES, POLICIES, AND where not obvious, why the bylaw PROCEDURES FOR CORPORATE provisions meet the requirements stated Administrative practice and ACTIVITIES in paragraph (j)(2)(i)(B) of this section. procedure, Freedom of Information, A Federal stock savings association that Individuals with disabilities, Minority ■ 3. The authority citation for part 5 has elected to follow the corporate businesses, Organization and functions continues to read as follows: governance provisions of the law of the (Government agencies), Reporting and Authority: 12 U.S.C. 1 et seq., 24a, 35, 93a, State in which its holding company is recordkeeping requirements, Women. 214a, 215, 215a, 215a–1, 215a–2, 215a–3, incorporated may continue to use those 12 CFR Part 5 215c, 371d, 481, 1462a, 1463, 1464, 1817(j), provisions even if the association is no 1831i, 1831u, 2901 et seq., 3101 et seq., 3907, longer controlled by that holding Administrative practice and and 5412(b)(2)(B). company. procedure, Federal savings associations, National banks, Reporting and § 5.21 [Amended] * * * * * recordkeeping requirements, Securities. ■ 4. Amend § 5.21 by: § 5.30 [Amended] ■ a. In paragraphs (j)(2)(i)(C) and 12 CFR Part 7 ■ (j)(3)(ii), removing the phrase ‘‘corporate 6. Amend § 5.30 by: Computer technology, Credit, governance procedures’’ wherever it ■ a. In paragraph (d)(1)(i), adding the Derivatives, Federal savings appears and adding in its place the word ‘‘or’’ after the phrase ‘‘temporary associations, Insurance, Investments, phrase ‘‘corporate governance facility,’’ and removing the phrase ‘‘, or Metals, National banks, Reporting and provisions’’; a drop box’’; and recordkeeping requirements, Securities, ■ b. In paragraph (j)(3)(ii): ■ b. In paragraph (d)(1)(iii), removing Security bonds. ■ i. Removing the phrase ‘‘the State the citation ‘‘12 CFR 7.4003’’ and where the home office of the adding in its place the citation ‘‘12 CFR 12 CFR Part 145 institution’’ and adding in its place ‘‘any 7.1027’’. Electronic funds transfers, Public State in which the home office or any PART 7—ACTIVITIES AND deposits, Federal savings associations. branch of the association’’; and ■ ii. Removing the phrase ‘‘such OPERATIONS 12 CFR Part 160 procedures’’ wherever it appears and ■ adding in its place the phrase ‘‘such 7. The authority citation for part 7 is Consumer protection, Investments, revised to read as follows: Manufactured homes, Mortgages, provisions’’. Reporting and recordkeeping ■ 5. Amend § 5.22 by: Authority: 12 U.S.C. 1 et seq., 25b, 29, 71, requirements, Savings associations, ■ a. Revising paragraph (j)(2)(ii); and 71a, 92, 92a, 93, 93a, 95(b)(1), 371, 371d, 481, ■ b. In paragraph (k)(1)(ii)(B), removing 484, 1462a, 1463, 1464, 1465, 1818, 1828, Securities. 3102(b), and 5412(b)(2)(B). For the reasons set out in the the phrase ‘‘corporate governance preamble, the OCC amends 12 CFR procedures’’ and adding in its place the § 7.1000 [Redesignated] phrase ‘‘corporate governance chapter I as follows: ■ 8. Redesignate § 7.1000 as § 7.1024. provisions’’. ■ PART 4—ORGANIZATION AND The revision reads as follows: 9. Add a new § 7.1000 to read as follows: FUNCTIONS, AVAILABILITY AND § 5.22 Federal stock savings association RELEASE OF INFORMATION, charter and bylaws. § 7.1000 Activities that are part of, or CONTRACTING OUTREACH * * * * * incidental to, the business of banking. PROGRAM, POST-EMPLOYMENT (j) * * * (a) Purpose. This section identifies the RESTRICTIONS FOR SENIOR (2) * * * criteria that the Office of the EXAMINERS (ii) Corporate governance election and Comptroller of the Currency (OCC) uses notice requirement. A Federal stock to determine whether an activity is ■ 1. The authority citation for part 4 association may elect to follow the authorized as part of, or incidental to, continues to read as follows: corporate governance provisions of: The the business of banking under 12 U.S.C. Authority: 5 U.S.C. 301, 552; 12 U.S.C. 1, laws of any State in which the home 24(Seventh) or other statutory authority. 93a, 161, 481, 482, 484(a), 1442, 1462a, 1463, office or any branch of the association (b) Restrictions and conditions on 1464 1817(a), 1818, 1820, 1821, 1831m, is located; the laws of any State in activities. The OCC may determine that 1831p–1, 1831o, 1833e, 1867, 1951 et seq., which a holding company of the activities are permissible under 12 2601 et seq., 2801 et seq., 2901 et seq., 3101 et seq., 3401 et seq., 5321, 5412, 5414; 15 association is incorporated or chartered; U.S.C. 24(Seventh) or other statutory U.S.C. 77uu(b), 78q(c)(3); 18 U.S.C. 641, Delaware General Corporation law; or authority only if they are subject to 1905, 1906; 29 U.S.C. 1204; 31 U.S.C. the Model Business Corporation Act, standards or conditions designed to 5318(g)(2), 9701; 42 U.S.C. 3601; 44 U.S.C. provided that such provisions may be provide that the activities function as 3506, 3510; E.O. 12600 (3 CFR, 1987 Comp., elected to the extent not inconsistent intended and are conducted safely and p. 235). with applicable Federal statutes and soundly, in accordance with other regulations and safety and soundness, applicable statutes, regulations, or 189 Id. and such provisions are not of the type supervisory policies.

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(c) Activities that are part of the negotiate and consummate. It is part of illustrative and not exclusive; the OCC business of banking. (1) An activity is the business of banking under 12 U.S.C. may determine that other activities are permissible for national banks as part of 24(Seventh) for a national bank to act as permissible pursuant to a Federal the business of banking if the activity is a finder. A Federal savings association savings association’s incidental powers: authorized under 12 U.S.C. 24(Seventh) may act as a finder to the extent those (i) Referring customers to a third or other statutory authority. In activities are incidental to the powers party; and determining whether an activity that is expressly authorized by the Home (ii) Providing services and products to not specifically included in 12 U.S.C. Owners’ Loan Act (HOLA) (12 U.S.C. customers indirectly through a third- 24(Seventh) or other statutory authority 1461 et seq). party discount program. is part of the business of banking, the (b) Permissible finder activities—(1) (c) Limitation. The authority to act as OCC considers the following factors: National banks. The following list a finder does not enable a national bank (i) Whether the activity is the provides examples of permissible finder or a Federal savings association to functional equivalent to, or a logical activities for national banks. This list is engage in brokerage activities that have outgrowth of, a recognized banking illustrative and not exclusive; the OCC not been found to be permissible for activity; may determine that other activities are national banks or Federal savings (ii) Whether the activity strengthens permissible pursuant to a national associations, respectively. the bank by benefiting its customers or bank’s authority to act as a finder: (d) Advertisement and fee. Unless its business; (i) Communicating information about otherwise prohibited by Federal law, a (iii) Whether the activity involves providers of products and services, and national bank or Federal savings risks similar in nature to those already proposed offering prices and terms to association may advertise the assumed by banks; and potential markets for these products and availability of, and accept a fee for, the (iv) Whether the activity is authorized services; services provided pursuant to this for State-chartered banks. (ii) Communicating to the seller an section. (2) The weight accorded each factor offer to purchase or a request for ■ 11. Amend § 7.1003 by: set out in paragraph (c)(1) of this section information, including forwarding ■ a. In paragraph (a): depends on the facts and circumstances completed applications, application ■ i. Revising the paragraph heading; of each case. fees, and requests for information to ■ ii. Adding the word ‘‘national’’ before (d) Activities that are incidental to the third-party providers; the word ‘‘bank’’ wherever it appears; business of banking. (1) An activity is (iii) Arranging for third-party ■ b. In paragraph (b): authorized for a national bank as providers to offer reduced rates to those ■ i. Adding the word ‘‘national’’ before incidental to the business of banking if customers referred by the national bank; the word ‘‘bank’’ in the paragraph it is convenient or useful to an activity (iv) Providing administrative, clerical, heading; that is specifically authorized for and record keeping functions related to ■ ii. Adding the word ‘‘national’’ before national banks or to an activity that is the national bank’s finder activity, the word ‘‘bank’’ wherever it appears; otherwise part of the business of including retaining copies of and banking. In determining whether an documents, instructing and assisting ■ iii. Adding the word ‘‘national’’ before activity is convenient or useful to such individuals in the completion of the word ‘‘bank’s’’; and activities, the OCC considers the documents, scheduling sales calls on ■ c. Adding paragraph (c). following factors: behalf of sellers, and conducting market The revisions and addition read as (i) Whether the activity facilitates the research to identify potential new follows: production or delivery of a bank’s customers for retailers; products or services, enhances the (v) Conveying between interested § 7.1003 Money lent by a national bank at bank’s ability to sell or market its parties expressions of interest, bids, banking offices or at facilities other than products or services, or improves the offers, orders, and confirmations banking offices. effectiveness or efficiency of the bank’s relating to a transaction; (a) In general. *** operations, in light of risks presented, (vi) Conveying other types of (c) Services on equivalent terms to innovations, strategies, techniques and information between potential buyers, those offered customers of unrelated new technologies for producing and sellers, and other interested parties; banks. An operating subsidiary owned delivering financial products and (vii) Establishing rules of general by a national bank may distribute loan services; and applicability governing the use and proceeds from its own funds or bank (ii) Whether the activity enables the operation of the finder service, funds directly to the borrower in person bank to use capacity acquired for its including rules that: at offices the operating subsidiary has banking operations or otherwise avoid (A) Govern the submission of bids and established without violating 12 U.S.C. economic loss or waste. offers by buyers, sellers, and other 36, 12 U.S.C. 81 and 12 CFR 5.30 (2) The weight accorded each factor interested parties that use the finder provided that the operating subsidiary set out in paragraph (d)(1) of this section service and the circumstances under provides similar services on depends on the facts and circumstances which the finder service will pair bids substantially similar terms and of each case. and offers submitted by buyers, sellers, conditions to customers of unaffiliated ■ 10. Revise § 7.1002 to read as follows: and other interested parties; and entities including unaffiliated banks. (B) Govern the manner in which ■ 12. Revise § 7.1004 to read as follows: § 7.1002 National bank and Federal buyers, sellers, and other interested savings association acting as finder. parties may bind themselves to the § 7.1004 Establishment of a loan (a) In general. A finder may identify terms of a specific transaction; and production office by a national bank. potential parties, make inquiries as to (viii) Acting as an electronic finder (a) In general. A national bank or its interest, introduce or arrange contacts or pursuant to § 7.5002(a)(1). operating subsidiary may engage in loan meetings of interested parties, act as an (2) Federal savings associations. The production activities at a site other than intermediary between interested parties, following list provides examples of the main office or a branch of the bank. and otherwise bring parties together for finder activities that are permissible for A national bank or its operating a transaction that the parties themselves Federal savings associations. This list is subsidiary may solicit loan customers,

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market loan products, assist persons in § 7.1012 [Amended] ■ d. Revising paragraphs (b)(1)(iv) and completing application forms and ■ 17. Amend § 7.1012 by: (b)(2)(i); and related documents to obtain a loan, ■ a. In paragraph (c)(1), removing the ■ e. In paragraph (b)(2)(ii), removing the originate and approve loans, make phrase ‘‘pick up from, and deliver’’ and word ‘‘bank’s’’ and adding in its place credit decisions regarding a loan adding in its place the phrase ‘‘pick up the phrase ‘‘national bank’s or Federal application, and offer other lending- from and deliver’’; and savings association’s’’. related services such as loan ■ b. In paragraph (c)(2)(vi), removing The revisions read as follows: information and applications at a loan the words ‘‘back office’’ and adding in production office without violating 12 § 7.1016 Independent undertakings issued its place the word ‘‘back-office’’. by a national bank or Federal savings U.S.C. 36 and 12 U.S.C. 81, provided ■ 18. Revise § 7.1015 to read as follows: association to pay against documents. that ‘‘money’’ is not deemed to be ‘‘lent’’ at that site within the meaning of § 7.1015 National bank and Federal (a) In general. A national bank or § 7.1003 and the site does not accept savings association investments in small Federal savings association may issue deposits or pay withdrawals. business investment companies. and commit to issue letters of credit and (b) Services of other persons. A (a) National banks. A national bank other independent undertakings within national bank may use the services of, may invest in a small business the scope of applicable laws or rules of 1 and compensate, persons not employed investment company (SBIC) or in any practice recognized by law. Under such by the bank in its loan production entity established solely to invest in independent undertakings, the national activities. SBICs, including purchasing the stock of bank’s or Federal savings association’s a SBIC, subject to appropriate capital obligation to honor depends upon the § 7.1005 [Removed and Reserved] limitations (see e.g., 15 U.S.C. 682(b)), presentation of specified documents and ■ 13. Remove and reserve § 7.1005. and may receive the benefits of such not upon nondocumentary conditions or stock ownership (e.g., stock dividends). resolution of questions of fact or law at § 7.1006 [Amended] The receipt and retention of a dividend issue between the applicant and the ■ 14. Amend § 7.1006 by: by a national bank from a SBIC in the beneficiary. A national bank or Federal ■ a. In the section heading, adding the form of stock of a corporate borrower of savings association also may confirm or phrase ‘‘or Federal savings association’’ the SBIC is not a purchase of stock otherwise undertake to honor or after the phrase ‘‘national bank’’; within the meaning of 12 U.S.C. purchase specified documents upon ■ b. Adding the phrase ‘‘or Federal 24(Seventh). their presentation under another savings association’’ after the phrase (b) Federal savings associations. person’s independent undertaking ‘‘national bank’’ wherever it appears in Federal savings associations may invest within the scope of such laws or rules. the first and second sentences; and in a SBIC or in any entity established (b) * * * (1) Terms. As a matter of ■ c. Adding the phrase ‘‘or savings solely to invest in SBICs as provided in safe and sound banking practice, association’’ after the phrase ‘‘provided 12 CFR 160.30. national banks and Federal savings that the bank’’ in the second sentence. (c) Qualifying SBIC. A national bank associations that issue independent or Federal savings association may undertakings should not be exposed to § 7.1009 [Removed and Reserved] invest in a SBIC that is either: undue risk. At a minimum, national ■ 15. Remove and reserve § 7.1009. (1) Already organized and has banks and Federal savings associations ■ 16. Revise § 7.1010 to read as follows: obtained a license from the Small should consider the following: Business Administration; or § 7.1010 Postal services by national banks * * * * * (2) In the process of being organized. (iv) The national bank or Federal and Federal savings associations. (d) SBIC wind-down. A national bank savings association either should be (a) In general. A national bank or or Federal savings association may fully collateralized or have a post-honor Federal savings association may provide retain an interest in a SBIC that has right of reimbursement from the postal services and receive income from voluntarily surrendered its license to applicant or from another issuer of an those services. The services performed operate as a SBIC in accordance with 13 independent undertaking. Alternatively, are those permitted under applicable CFR 107.1900 and does not make any if the national bank’s or Federal savings rules of the United States Postal Service new investments (other than association’s undertaking is to purchase and may include meter stamping of investments in cash equivalents, which, documents of title, securities, or other letters and packages and the sale of for the purposes of this paragraph (d), valuable documents, the bank or savings related insurance. The national bank or means high quality, highly liquid association should obtain a first priority Federal savings association may investments whose maturity right to realize on the documents if the advertise, develop, and extend the corresponds to the issuer’s expected or services to attract customers to the potential need for funds and whose 1 Examples of such laws or rules of practice institution. currency corresponds to the issuer’s include: The applicable version of Article 5 of the (b) Postal regulations. A national bank assets) after such voluntary surrender. Uniform Commercial Code (UCC) (1962, as or Federal savings association providing ■ 19. Amend § 7.1016 by: amended 1990) or revised Article 5 of the UCC (as postal services must do so in accordance ■ a. Revising the section heading and amended 1995); the Uniform Customs and Practice for Documentary Credits (International Chamber of with the rules and regulations of the paragraphs (a) and (b)(1) introductory Commerce (ICC) Publication No. 600 or any United States Postal Service. The text; applicable prior version); the Supplements to UCP national bank or Federal savings ■ b. In paragraphs (b)(1)(iii)(B) and (C), 500 & 600 for Electronic Presentation (eUCP v. 1.0, association must keep the books and (b)(2)(iii), and (b)(3) and (4), removing 1.1, & 2.0) (Supplements to the Uniform Customs and Practices for Documentary Credits for records of the postal services separate the word ‘‘bank’’ and adding in its place Electronic Presentation); International Standby from those of other banking operations. the phrase ‘‘national bank or Federal Practices (ISP98) (ICC Publication No. 590); the Under 39 U.S.C. 404 and regulations savings association’’; United Nations Convention on Independent issued under that statute (see 39 CFR ■ c. In paragraphs (b)(1)(iii)(B), Guarantees and Stand-by Letters of Credit (adopted by the U.N. General Assembly in 1995 and signed chapter I), the United States Postal (b)(2)(iii), and (b)(4), adding the phrase by the U.S. in 1997); and the Uniform Rules for Service may inspect the books and ‘‘or savings association’s’’ after the word Bank-to-Bank Reimbursements Under Documentary records pertaining to the postal services. ‘‘bank’s’’; Credits (ICC Publication No. 725).

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bank or savings association is not ■ B. Removing the phrase ‘‘the effective national bank or Federal savings otherwise to be reimbursed. date of this regulation’’ and adding in its association; (2) * * * place the phrase ‘‘April 1, 2018’’; and (2) The transaction is of limited (i) In the event that the undertaking is ■ ii. Removing, in the second sentence, tenure and is not indefinite, including to honor by delivery of an item of value the phrase ‘‘federal savings association’’ retaining a limited investment interest other than money, the national bank or and adding in its place the phrase that is required by law to obtain Federal savings association should ‘‘Federal savings association’’. continuing tax benefits or needed to ensure that market fluctuations that obtain the expected rate of return; affect the value of the item will not § 7.1024 [Amended] (3) The tax benefits and other cause the bank or savings association to ■ 23. Amend newly redesignated payments received by the national bank assume undue market risk; § 7.1024 by: or Federal savings association from the * * * * * ■ a. In paragraphs (c)(2)(i) and (ii) and transaction repay the investment and ■ 20. Revise § 7.1021 to read as follows: (d), removing the word ‘‘shall’’ and provide the expected rate of return at adding in its place the word ‘‘must’’; the time of underwriting; § 7.1021 Financial literacy programs not and (4) Consistent with paragraph (c)(3) of branches of national banks. ■ b. In paragraph (e), removing the word this section, the national bank or A financial literacy program is a ‘‘shall’’ and adding in its place the word Federal savings association does not program the principal purpose of which ‘‘may’’. rely on appreciation of value in the is to be educational for members of the ■ 24. Add § 7.1025 to read as follows: project or property rights underlying the community. The premises of, or a project for repayment; facility used by, a school or other § 7.1025 Tax equity finance transactions (5) The national bank or Federal organization at which a national bank by national banks and Federal savings savings association uses underwriting participates in a financial literacy associations. and credit approval criteria and program is not a branch for purposes of (a) Tax equity finance transactions. A standards that are substantially 12 U.S.C. 36 provided the bank does not national bank or Federal savings equivalent to the underwriting and establish and operate the premises or association may engage in a tax equity credit approval criteria and standards facility. The OCC considers finance transaction pursuant to 12 used for a traditional commercial loan; establishment and operation in this U.S.C. 24(Seventh) and 1464 only if the (6) The national bank or Federal context on a case by case basis, transaction is the functional equivalent savings association is a passive investor considering the facts and circumstances. of a loan, as provided in paragraph (c) in the transaction and is unable to direct However, the premises or facility is not of this section, and the transaction the affairs of the project company; and a branch of the national bank if the safe satisfies applicable conditions in (7) The national bank or Federal harbor test in § 7.1012(c)(2) applicable paragraph (d) of this section. The savings association appropriately to messenger services established by authority to engage in tax equity finance accounts for the transaction initially and third parties is satisfied. The factor transactions under this section is on an ongoing basis and has discussed in § 7.1012(c)(2)(i) can be met pursuant to 12 U.S.C. 24(Seventh) and documented contemporaneously its if bank employee participation in the 1464 lending authority and is separate accounting assessment and conclusion. financial literacy program consists of from, and does not limit, other (d) Conditions on tax equity finance managing the program or conducting or investment authorities available to transactions. A national bank or Federal engaging in financial education national banks and Federal savings savings association may engage in tax activities provided the school or other associations. equity finance transactions only if: organization retains control over the (b) Definitions. For purposes of this (1) The national bank or Federal program and over the premises or section: savings association cannot control the facilities at which the program is held. (1) Appropriate OCC supervisory sale of energy, if any, from the project; § 7.1022 [Amended] office means the OCC office that is (2) The national bank or Federal responsible for the supervision of a ■ savings association limits the total 21. Amend § 7.1022 by: national bank or Federal savings ■ a. In paragraph (d), removing the word dollar amount of tax equity finance association, as described in subpart A of ‘‘shall’’ and adding in its place the word transactions undertaken pursuant to this 12 CFR part 4; ‘‘may’’ wherever it appears; and section to no more than five percent of ■ b. In paragraph (e), in the first (2) Capital and surplus has the same its capital and surplus, unless the OCC sentence, removing the word ‘‘shall’’ meaning that this term has in 12 CFR determines, by written approval of a and adding in its place the word ‘‘must’’ 32.2. written request by the national bank or and removing the phrase ‘‘the effective (3) Tax equity finance transaction Federal savings association to exceed date of this regulation’’ and adding in its means a transaction in which a national the five percent limit, that a higher place the phrase ‘‘April 1, 2018’’. bank or Federal savings association aggregate limit will not pose an provides equity financing to fund a unreasonable risk to the national bank § 7.1023 [Amended] project or projects that generate tax or Federal savings association and that ■ 22. Amend § 7.1023 by: credits or other tax benefits and the use the tax equity finance transactions in ■ a. In paragraph (c), removing the word of an equity-based structure allows the the national bank’s or Federal savings ‘‘shall’’ and adding in its place the word transfer of those credits and other tax association’s portfolio will not be ‘‘may’’ and removing the words ‘‘federal benefits to the national bank or Federal conducted in an unsafe or unsound savings association’’ and adding in its savings association. manner; provided, however, that in no place the words ‘‘Federal savings (c) Functional equivalent of a loan. A case may a national bank or Federal association’’; and tax equity finance transaction is the savings association’s total dollar amount ■ b. In paragraph (d): functional equivalent of a loan if: of tax equity finance transactions ■ i. In the first sentence: (1) The structure of the transaction is undertaken pursuant to this section ■ A. Removing the word ‘‘shall’’ and necessary for making the tax credits or exceed 15 percent of its capital and adding in its place the word ‘‘must’’; other tax benefits available to the surplus;

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(3) The national bank or Federal (3) Open-ended liability refers to (i) The rules of the payment system do savings association has provided written liability for operational losses that is not not impose liability for operational notification to the appropriate OCC capped under the rules of the payment losses on members; or supervisory office, prior to engaging in system and includes indemnifications of (ii) The national bank’s or Federal each tax equity finance transaction that third parties provided as a condition of savings association’s liability for includes its evaluation of the risks membership in the payment system; operational losses is limited by the rules posed by the transaction; (4) Operational loss means a charge of the payment system to specific and (4) The national bank or Federal resulting from sources other than appropriate limits that do not exceed savings association can identify, defaults by other members of the the lower of: measure, monitor, and control the payment system. Examples of (A) The legal lending limit under 12 associated risks of its tax equity finance operational losses include losses that CFR part 32; or transaction activities individually and are due to: Employee misconduct, fraud, (B) The limit set for the bank or as a whole on an ongoing basis to ensure misjudgment, or human error; savings association by the OCC. that such activities are conducted in a management failure; information (e) Safety and soundness procedures. safe and sound manner; and systems failures; disruptions from (1) Prior to joining a payment system, a (5) The national bank or Federal internal or external events that result in national bank or Federal savings savings association obtains a legal the degradation or failure of services association must: (i) Identify and evaluate the risks opinion or has other good faith, provided by the payment system; posed by membership in the payment reasoned bases for making a security breaches or cybersecurity system, taking into account whether the determination that tax credits or other events; or payment or settlement delays, liability of the bank or savings tax benefits are available before constrained liquidity, contagious association is limited; and engaging in a tax equity finance disruptions, and resulting litigation; and transaction. (ii) Ensure that it can measure, (5) Payment system means ‘‘financial (e) Applicable legal requirements. The monitor, and control the risks identified market utility’’ as defined in 12 U.S.C. transaction is subject to the substantive pursuant to paragraph (e)(1)(i) of this 5462(6), wherever operating, and legal requirements of a loan, including section. includes both retail and wholesale the lending limits prescribed by 12 (2) After joining a payment system, a payment systems. Payment system does U.S.C. 84 and 12 U.S.C. 1464(u), as national bank or Federal savings not include a derivatives clearing appropriate, as implemented by 12 CFR association must manage the risks of the organization registered under the part 32, and if the active investor or payment system on an ongoing basis. Commodity Exchange Act, a clearing project sponsor of the transaction is an This ongoing risk management must: agency registered under the Securities affiliate of the bank, to the restrictions (i) Identify and evaluate the risks Exchange Act of 1934, or foreign on transactions with affiliates posed by membership in the payment organization that would be considered a prescribed by 12 U.S.C. 371c and 371c– system, taking into account whether the derivatives clearing organization or 1, as implemented by 12 CFR part 223. liability of the bank or savings clearing agency were it operating in the ■ 25. Add § 7.1026 to read as follows: association is limited; and United States. (ii) Measure, monitor, and control the § 7.1026 National bank and Federal (c) Notice requirements—(1) Prior risks identified pursuant to paragraph savings association payment system notice required. A national bank or (e)(2)(i) of this section. memberships. Federal savings association must (3) If the national bank or Federal (a) In general. National banks and provide written notice to its appropriate savings association identifies risks Federal savings associations may OCC supervisory office at least 30 days during the ongoing risk management become members of payment systems, prior to joining a payment system that required by paragraph (e)(2) of this subject to the requirements of this exposes it to open-ended liability. section that raise safety and soundness section. (2) After-the-fact notice. A national concerns, such as a material change to (b) Definitions. As used in this bank or Federal savings association the bank’s or savings association’s section: must provide written notice to its liability or indemnification (1) Appropriate OCC supervisory appropriate OCC supervisory office responsibilities, the national bank or office means the OCC office that is within 30 days of joining a payment Federal savings association must: responsible for the supervision of a system that does not expose it to open- (i) Notify the appropriate OCC national bank or Federal savings ended liability. supervisory office as soon as the safety association, as described in subpart A of (d) Content of notice—(1) In general. and soundness concern is identified; 12 CFR part 4; A notice required by paragraph (c) of and (2) Member includes a national bank this section must include (ii) Take appropriate actions to or Federal savings association representations that the national bank or remediate the risk. designated as a ‘‘member,’’ or (4) A national bank or Federal savings Federal savings association: ‘‘participant,’’ or other similar role by a association that believes its open-ended payment system, including by a (i) Has complied with the safety and liability is otherwise limited (e.g., by payment system that requires the soundness review requirements in negotiated agreements or laws of an national bank or Federal savings paragraph (e)(1) of this section; and appropriate jurisdiction) may consider association to share in operational (ii) Will comply with the safety and its liability to be limited for purposes of losses or maintain a reserve with the soundness review and notification the reviews required by paragraphs payment system to offset potential requirements in paragraphs (e)(2) and (e)(1) and (2) of this section so long as: liability for operational losses. This (3) of this section. (i) Prior to joining the payment definition includes indirect members (2) Payment system with limits on system, the bank or savings association only if they agree to be bound by the liability or no liability. A notice filed obtains a written legal opinion that: rules of the payment system and the under paragraph (c)(2) of this section (A) Describes how the payment rules of the payment system indicate also must include a representation that system allocates liability for operational indirect members are covered; either: losses; and

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(B) Concludes the potential liability authorities unambiguous and may they and processes to oversee and ensure the for operational losses for the national be amended or otherwise altered continuing effectiveness of the risk bank or Federal savings association is in without prior notification to all management process? The program fact limited to specific and appropriate members and an opportunity to should include a formal process for limits that do not exceed the lower of: withdraw? approval of payment system (1) The legal lending limit under 12 (x) Is the payment system governed by memberships as well as ongoing CFR part 32; or uniform, comprehensive and clear legal monitoring and measurement of activity (2) The limit set for the bank or standards in its operating jurisdiction against predetermined risk limits. savings association by the OCC; and that address payment and/or settlement (iv) Does the bank or savings (ii) There are no material changes to activities? association’s membership evaluation the liability or indemnification (xi) Is the payment system subject to process include assessments and requirements applicable to the bank or and in compliance (or observance) with analyses of: savings association since the issuance of the Committee on Payment and (A) The credit quality of the entity; the written legal opinion. Settlement Systems and the Technical (B) The entity’s risk management (f) Safety and soundness Committee of the International practices; considerations. (1) A national bank or Organization of Securities Commissions (C) Settlement and default procedures Federal savings association should (CPSS—IOSCO) Principles for Financial of the entity; evaluate, at a minimum, the following Market Infrastructures? (D) Any default or loss-sharing payment system characteristics when (xii) Is the payment system designated precedents and any other applicable conducting an analysis required by as a systemically important financial limits or restrictions of the entity; paragraph (e) of this section: market utility (SIFMU) by the Financial (E) Key risks associated with joining (i) Does the processing occur on a Stability Oversight Counsel (FSOC) or is the entity; and (F) The incremental effect of real-time gross settlement basis or it the international or foreign additional memberships in aggregate provide reasonable assurance (e.g., equivalent? exposure to payment system risk? prefunding, etc.) that members will (xiii) Does the payment system (v) Does the bank or savings meet settlement obligations? provide members with information (ii) How does the payment system’s association’s risk management program relevant to governance, risk include policies and procedures that rules limit its liability to members? management practices, and operations (iii) Does the payment system have identify and estimate the level of in a timely manner and with sufficient insurance coverage and/or self- potential operational risks, at both transparency and particularity for the insurance arrangements to cover inception of membership and on an on- bank to ascertain with reasonable operational losses? going basis? (iv) Do the payment system’s rules certainty the bank’s level of risk (vi) Does the bank or savings provide an unambiguous pro-rata loss exposure to the system? association have auditing procedures to (xiv) Is the payment system operated allocation methodology under its ensure the integrity of risk indemnity provisions and does the by or subject to oversight of a central measurement, control and reporting methodology provide members the bank or regulatory authority? systems? (xv) Is the payment system legally opportunity to reduce or eliminate (vii) Does the program include organized as a not-for-profit enterprise liability exposure by decreasing or mechanisms to monitor, estimate, and or is it owned and operated by a ceasing use of the payment system? maintain control over the bank or (v) Do the payment system’s rules government entity? savings association’s potential liabilities (xvi) Does the payment system have provide for unambiguous membership for operational losses on an ongoing withdrawal procedures that do not appropriate systems and controls for basis. This should include: require the prior approval of the system? communicating to members in a timely (A) Limits and other controls with (vi) Does the payment system have manner about material events that relate respect to each identified risk factor; appropriate admission and continuing to or could result in potential (B) Reports generated throughout the participation requirements for system operational losses, e.g. fraud, system processes that accurately present the participants? Such requirements should failures, natural disasters, etc.? nature and level(s) of risk taken and address, among other things: (xvii) Has the payment system ever demonstrate compliance with approved (A) The participants’ access to exercised its authority under polices and limits; and sufficient financial resources to meet indemnification provisions? (C) Identification of the business unit obligations arising from participation; (2) A national bank or Federal savings and/or individuals responsible for (B) The adequacy of participants’ association should consider, at a measuring and monitoring risk operational capacities to meet minimum, the following characteristics exposures, as well as those individuals obligations arising from participation; of its risk management program when responsible for monitoring compliance and conducting an analysis required by with policies and risk exposure limits. (C) The adequacy of the participants’ paragraph (e) of this section: (viii) Does a bank or savings own risk management processes. (i) Does the bank or savings association with memberships in (vii) Does the payment system have association have appropriate board multiple payment systems have the processes and controls in place to verify supervision and managerial and staff ability to monitor and report aggregate and monitor on an ongoing basis the expertise? risk exposures and measurement against compliance of each participant with (ii) Does the bank or savings risk limits both at the sponsoring admission and participation association have comprehensive business line level and the total requirements? policies and operating procedures with exposure organizationally? (viii) Does the payment system have respect to its risk identification, ■ 26. Add § 7.1027 to read as follows: written policies and procedures for measurement and management addressing participant failures to meet information systems that are routinely § 7.1027 Establishment and operation of a ongoing participation requirements? reviewed? remote service unit by a national bank. (ix) Are the payment system’s rules (iii) Does the bank or savings A remote service unit (RSU) is an relating to the system’s emergency association have effective risk controls automated or unstaffed facility, operated

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by a customer of a bank with at most operated by the customer with at most underlying that are customer-driven, delimited assistance from bank delimited assistance from bank physically-settled by transitory title personnel, that conducts banking personnel. transfer, and either perfectly-matched or functions such as receiving deposits, ■ 29. Add § 7.1030 to read as follows: portfolio-hedged; and paying withdrawals, or lending money. (5) Derivatives transactions as a A national bank may establish and § 7.1030 Permissible derivatives activities financial intermediary with any operate an RSU pursuant to 12 U.S.C. for national banks. underlying that are customer-driven, 24(Seventh). An RSU includes an (a) Authority. This section is issued physically-hedged, and either portfolio- automated teller machine, automated pursuant to 12 U.S.C. 24(Seventh). A hedged or hedged on a transaction-by- loan machine, automated device for national bank may only engage in transaction basis, and provided that: receiving deposits, personal computer, derivatives transactions in accordance (i) The national bank does not take telephone, other similar electronic with the requirements of this section. physical delivery of any commodity by devices, and drop boxes. An RSU may (b) Definitions. For purposes of this receipt of physical quantities of the be equipped with a telephone or tele- section: commodity on bank premises; and video device that allows contact with (1) Customer-driven means a (ii) Physical hedging activities meet bank personnel. An RSU is not a transaction is entered into for a the requirements of paragraph (e) of this ‘‘branch’’ within the meaning of 12 customer’s valid and independent section. U.S.C. 36(j), and is not subject to State business purpose (and a customer- (d) Notice procedure. (1) A national geographic or operational restrictions or driven transaction does not include a bank must provide notice to its licensing laws. transaction the principal purpose of Examiner-in-Charge prior to engaging in ■ 27. Add § 7.1028 to read as follows: which is to deliver to a national bank any of the following with respect to assets that the national bank could not derivatives transactions with payments § 7.1028 Establishment and operation of a invest in directly); based on underlyings that a national deposit production office by a national (2) Perfectly-matched means two bank. bank is not permitted to purchase back-to-back derivatives transactions directly as an investment: (a) In general. A national bank or its that offset risk with respect to all (i) Engaging in derivatives hedging operating subsidiary may engage in economic terms (e.g., amount, maturity, activities pursuant to paragraph (c)(2) of deposit production activities at a site duration, and underlying); this section; other than the main office or a branch (3) Portfolio-hedged means a portfolio (ii) Expanding the bank’s derivatives of the bank. A national bank or its of derivatives transactions that are hedging activities pursuant to paragraph operating subsidiary may solicit hedged based on net unmatched (c)(2) of this section to include a new deposits, provide information about positions or exposures in the portfolio; category of underlying for derivatives deposit products, and assist persons in (4) Physical hedging or physically- transactions; completing application forms and hedged means holding title to or (iii) Engaging in customer-driven related documents to open a deposit acquiring ownership of an asset (for financial intermediation derivatives account at a deposit production office example, by warehouse receipt or book- activities pursuant to paragraph (c)(3), (DPO). A DPO is not a branch within the entry) solely to manage the risks arising (4), or (5) of this section; and meaning of 12 U.S.C. 36(j) and 12 CFR out of permissible customer-driven (iv) Expanding the bank’s customer- 5.30(d)(1) so long as it does not receive derivatives transactions; driven financial intermediation deposits, pay withdrawals, or make (5) Physical settlement or physically- derivatives activities pursuant to loans. All deposit and withdrawal settled means accepting title to or paragraph (c)(3), (4), or (5) of this transactions of a bank customer using a acquiring ownership of an asset; section to include any new category of DPO must be performed by the (6) Transitory title transfer means underlyings. customer, either in person at the main accepting and immediately (2) The notice pursuant to paragraph office or a branch office of the bank, or relinquishing title to an asset; and (d)(1) of this section must be submitted by mail, electronic transfer, or a similar (7) Underlying means the reference in writing at least 30 days before the method of transfer. asset, rate, obligation, or index on which (b) Services of other persons. A the payment obligation(s) between national bank commences the activity national bank may use the services of, counterparties to a derivative and include the following information: and compensate, persons not employed transaction is based. (i) A detailed description of the by the bank in its deposit production (c) In general. A national bank may proposed activity, including the activities. engage in the following derivatives relevant underlyings; (ii) The anticipated start date of the ■ 28. Add § 7.1029 to read as follows: transactions after notice in accordance with paragraph (d) of this section, as activity; and § 7.1029 Combination of national bank applicable: (iii) A detailed description of the loan production office, deposit production (1) Derivatives transactions with bank’s risk management system office, and remote service unit. payments based on underlyings a (policies, processes, personnel, and A location at which a national bank national bank is permitted to purchase control systems) for identifying, operates a loan production office (LPO), directly as an investment; measuring, monitoring, and controlling a deposit production office (DPO), and (2) Derivatives transactions with any the risks of the activity. a remote service unit (RSU) is not a underlying to hedge the risks arising (e) Additional requirements for ‘‘branch’’ within the meaning of 12 from bank-permissible activities; physical hedging activities. (1) A U.S.C. 36(j) by virtue of that (3) Derivatives transactions as a national bank engaging in physical combination. Since an LPO, DPO, or financial intermediary with any hedging activities pursuant to paragraph RSU is not, individually, a branch under underlying that are customer-driven, (c)(5) of this section must hold the 12 U.S.C. 36(j), any combination of cash-settled, and either perfectly- underlying solely to hedge risks arising these facilities at one location does not matched or portfolio-hedged; from derivatives transactions originated create a branch. The RSU at such a (4) Derivatives transactions as a by customers for the customers’ valid combined location must be primarily financial intermediary with any and independent business purposes.

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(2) The physical hedging activities ■ iv. Removing the word ‘‘shall’’ and statutes or regulations include the must offer a cost-effective means to adding in its place the word ‘‘must’’; following: hedge risks arising from permissible ■ d. Redesignating paragraph (c) as (1) Restrictions on business banking activities. paragraph (d) and revising it; and combinations with interested (3) The national bank must not take ■ e. Adding a new paragraph (c). shareholders. State provisions that anticipatory or maintain residual The addition and revisions are as prohibit, or that permit the corporation positions in the underlying except as follows: to prohibit in its certificate of necessary for the orderly establishment incorporation or other governing § 7.2000 National bank corporate document, the corporation from or unwinding of a hedging position. governance. (4) The national bank must not engaging in a business combination acquire equity securities for hedging (a) In general. The corporate with an interested shareholder or any purposes that constitute more than 5 governance provisions in a national related entity for a specified period of percent of a class of voting securities of bank’s articles of association and bylaws time from the date on which the any issuer. and the bank’s conduct of its corporate shareholder first becomes an interested (5) With respect to physical hedging governance affairs must comply with shareholder, subject to certain involving commodities: applicable Federal banking statutes and exceptions such as board approval. An (i) A national bank’s physical position regulations and safe and sound banking interested shareholder is one that owns in a particular physical commodity practices. an amount of stock specified in the State (including, as applicable, delivery point, * * * * * provision. purity, grade, chemical composition, (c) Continued use of former holding (2) Poison pill. State provisions that weight, and size) must not be more than company State. A national bank that has provide, or that permit the corporation 5 percent of the gross notional value of elected to follow the corporate to provide in its certificate of the bank’s derivatives that are in that governance provisions of the law of the incorporation or other governing particular physical commodity and State in which its holding company is document, that all the shareholders, allow for physical settlement within 30 incorporated may continue to use those other than the hostile acquiror, have the days. Title to commodities acquired and provisions even if the bank is no longer right to purchase additional stock at a immediately sold by a transitory title controlled by that holding company. substantial discount upon the transfer does not count against the 5 (d) Request for OCC staff position. A occurrence of a triggering event. percent limit; national bank may request the views of (3) Requiring all shareholder actions (ii) The physical position must more OCC staff on the permissibility of a to be taken at a meeting. State effectively reduce risk than a cash- national bank’s adoption of a particular provisions that provide, or that permit settled hedge referencing the same State corporate governance provision. the corporation to provide in its commodity; and Requests must include the following certificate of incorporation or other (iii) The physical position hedges a information: governing document, that all actions to physically-settled customer-driven (1) The name of the national bank; be taken by shareholders must occur at commodity derivative transaction(s). (2) Citation to the State statutes or a meeting and that shareholders may not (f) Safe and sound banking practices. regulations involved; take action by written consent. A national bank must adhere to safe and (3) A discussion as to whether a (4) Limits on shareholders’ authority sound banking practices in conducting similarly situated State bank is subject to call special meetings. State provisions the activities described in this section. to or may adopt the corporate that provide, or that permit the The bank must have a risk management governance provision; corporation to provide in its certificate system (policies, processes, personnel, (4) Identification of all Federal of incorporation or other governing and control system) that effectively banking statutes or regulations that are document, that: manages (identifies, measures, monitors, on the same subject as, or otherwise (i) Only the board of directors, and and controls) these activities’ interest have a bearing on, the subject of the not the shareholders, have the right to rate, credit, liquidity, price, operational, proposed State corporate governance call special meetings of the compliance, and strategic risks. provision; and shareholders; or ■ 30. Revise the heading for subpart B (5) An analysis of how the proposed (ii) If shareholders have the right to to read as follows: practice is not inconsistent with call special meetings, a high percentage applicable Federal statutes or of shareholders is needed to call the Subpart B—Corporate Practices regulations and is not inconsistent with meeting. bank safety and soundness. (5) Shareholder removal of a director ■ 31. Amend § 7.2000 by: ■ 32. Add § 7.2001 to read as follows: only for cause. State provisions that ■ a. Revising the section heading and provide, or that permit the corporation paragraph (a); § 7.2001 National bank adoption of anti- to provide in its certificate of ■ b. In paragraph (b): takeover provisions. incorporation or other governing ■ i. Removing the word ‘‘procedures’’ (a) In general. Pursuant to § 7.2000(b), document, that shareholders may wherever it appears and adding in its a national bank may adopt anti-takeover remove a director only for cause, and place the word ‘‘provisions’’; provisions included in State corporate not both for cause and without cause. ■ ii. Removing the phrase ‘‘the state in governance law if the provisions are not (c) State anti-takeover provisions that which the main office of the bank’’ and inconsistent with Federal banking are inconsistent with Federal banking adding in its place the phrase ‘‘any State statutes or regulations and not statutes or regulations. The following in which the main office or any branch inconsistent with bank safety and State anti-takeover provisions are of the bank’’; soundness. inconsistent with Federal banking ■ iii. Removing the phrase ‘‘the state in (b) State anti-takeover provisions that statutes or regulations: which the holding company of the are not inconsistent with Federal (1) Supermajority voting bank’’ and adding in its place the phrase banking statutes or regulations. State requirements. State provisions that ‘‘any State in which a holding company anti-takeover provisions that are not require, or that permit the corporation to of the bank’’; and inconsistent with Federal banking require in its certificate of incorporation

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or other governing document, a (i) Inconsistent with Federal banking mail, unless the OCC determines that an supermajority of the shareholders to statutes or regulations, notwithstanding emergency circumstance exists. Where a approve specified matters are paragraph (b) of this section; or national bank is a wholly-owned inconsistent when applied to matters for (ii) Inconsistent with bank safety and subsidiary, the sole shareholder is which Federal banking statutes or soundness other than as provided in permitted to waive notice of the regulations specify the required level of paragraph (d) of this section. shareholder’s meeting. The articles of shareholder approval. (2) Review. The OCC may initiate a association, bylaws, or law applicable to (2) Restrictions on a shareholder’s review, or a bank may request OCC a national bank may require a longer right to vote all the shares it owns. State review pursuant to § 7.2000(d), of a period of notice. provisions that prohibit, or that permit State anti-takeover provision. (b) Annual meeting for election of the corporation in its certificate of (f) Method of adoption for anti- directors. When the day fixed for the incorporation or other governing takeover provisions—(1) Board and regular annual meeting of the document to prohibit, a person from shareholder approval. A national bank shareholders falls on a legal holiday in voting shares acquired that increase must follow the provisions for approval the State in which the bank is located, their percentage of ownership of the by the board of directors and approval the shareholders’ meeting must be held, company’s stock above a certain level of shareholders for the adoption of an and the directors elected, on the next are inconsistent when applied to anti-takeover provision in the State following banking day. shareholder votes governed by 12 U.S.C. corporate governance law it has elected (c) Virtual participation at 61. to follow. However, if the provision is shareholder meetings—(1) In general. A (d) Bank safety and soundness—(1) In included in the bank’s articles of national bank may provide for general. Except as provided in association, the bank’s shareholders telephonic or electronic participation at paragraph (d)(2) of this section, any must approve the amendment of the shareholder meetings. State corporate governance provision, articles pursuant to 12 U.S.C. 21a, even (2) Procedures. A national bank must including anti-takeover provisions, that if the State law does not require follow the procedures for telephonic or would render more difficult or approval by the shareholders. electronic participation in a shareholder discourage an injection of capital by (2) Documentation. If the State meeting of the corporate governance purchase of bank stock, a merger, the corporate governance law requires the provisions it has elected to follow acquisition of the bank, a tender offer, anti-takeover provision to be in the pursuant to § 7.2000(b), if those elected a proxy contest, the assumption of company’s articles of incorporation, provisions include telephonic or control by a holder of a large block of certificate of incorporation, or similar electronic participation procedures; the the bank’s stock, or the removal of the document, the national bank must Delaware General Corporation Law, Del. incumbent board of directors or include the provision in its articles of Code Ann. Tit. 8 (1991, as amended management is inconsistent with bank association. If the State corporate 1994, and as amended thereafter); or the safety and soundness if: governance law does not require the Model Business Corporation Act, (i) The bank is less than adequately provision to be in the company’s articles provided, however, that such capitalized (as defined in 12 CFR part of incorporation, certificate of procedures are not inconsistent with 6); incorporation, or similar document, but applicable Federal statutes and (ii) The bank is in troubled condition allows it to be in the bylaws, then the regulations and safety and soundness. (as defined in 12 CFR 5.51(c)(7)); national bank must include the The national bank must indicate the use (iii) Grounds for the appointment of a provision in either its articles of of these procedures in its bylaws. receiver under 12 U.S.C. 191, as association or in its bylaws, provided, (d) Virtual participation at board of determined by the OCC, are present; or however, that if the State corporate directors meetings. A national bank may (iv) The bank is otherwise in less than governance law requires shareholder provide for telephonic or electronic satisfactory condition, as determined by approval for changes to the participation at a meeting of its board of the OCC. corporation’s bylaws, then the national directors. (2) Exception. Anti-takeover bank must include the provision in its ■ 35. Revise the heading for § 7.2004 to provisions are not inconsistent with articles of association. read as follows: bank safety and soundness if, at the time ■ 33. Amend § 7.2002 by: the bank adopts the provisions: ■ a. Revising the section heading; § 7.2004 Honorary national bank directors (i) The bank is not subject to any of ■ b. Removing the word ‘‘bank’s’’ and or advisory boards. the conditions in paragraph (d)(1) of this adding in its place the phrase ‘‘national * * * * * section; and bank’s’’ wherever it appears; and ■ 36. Amend § 7.2005 by: (ii) The bank includes, in its articles ■ c. Adding the phrase ‘‘for shareholder ■ a. Revising the section heading and of association or its bylaws, as voting’’ after the word ‘‘proxy’’ applicable pursuant to paragraph (f) of the heading in paragraph (a); and wherever it appears. ■ b. Removing in paragraph (c)(3)(ii), this section, a limitation that would The revision reads as follows: make the provisions ineffective if: the word ‘‘shall’’ and adding in its place (A) The conditions in paragraph (d)(1) § 7.2002 National bank director or attorney the word ‘‘must’’. of this section exist; or as proxy. The revision reads as follows: (B) The OCC otherwise directs the * * * * * § 7.2005 Ownership of stock necessary to bank not to follow the provision for ■ 34. Revise § 7.2003 to read as follows: qualify as director of a national bank. supervisory reasons. (e) Case-by-case review—(1) OCC § 7.2003 National bank shareholder (a) In general. *** determination. Based on the substance meetings; Board of directors meetings. * * * * * of the provision or the individual (a) Notice of shareholders’ meetings. ■ 37. Amend § 7.2006 by: circumstances of a national bank, the A national bank must mail shareholders ■ a. Revising the section heading; and OCC may determine that a State anti- notice of the time, place, and purpose of ■ b. In the first sentence, removing the takeover provision, as proposed or all shareholders’ meetings at least 10 phrase ‘‘When electing directors, a adopted by a bank, is: days prior to the meeting by first class shareholder shall’’ and adding in its

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place the phrase ‘‘When electing § 7.2010 National bank directors’ written agreement that the institution- national bank directors, a shareholder responsibilities. affiliated party will reimburse the bank must’’. * * * * * or savings association, as appropriate, The revision reads as follows: ■ 42. Revise the heading of § 7.2011 to for any portion of that indemnification read as follows: that the institution-affiliated party is § 7.2006 Cumulative voting in election of ultimately found not to be entitled to national bank directors. § 7.2011 National bank compensation under 12 U.S.C. 1828(k) and 12 CFR * * * * * plans. chapter III, except to the extent that the ■ 38. Amend § 7.2007 by: * * * * * bank’s or savings association’s expenses ■ a. Revising the section heading; ■ 43. Revise § 7.2012 to read as follows: have been reimbursed by an insurance ■ b. In paragraph (a), adding the word policy or fidelity bond. ‘‘national’’ before the phrase ‘‘bank’s § 7.2012 President as director of a national (d) Insurance premiums. A national bank. articles of association’’ in the first bank or Federal savings association may sentence; and Pursuant to 12 U.S.C. 76, the person provide for the payment of reasonable ■ c. In paragraph (b), removing the serving as, or in the function of, premiums for insurance covering the phrase ‘‘If a vacancy occurs on the board president of a national bank, regardless expenses, legal fees, and liability of of directors,’’ and adding in its place the of title, must be a member of the board institution-affiliated parties to the extent phrase ‘‘If a vacancy occurs on the of directors. A director other than the that the expenses, fees, or liability could national bank’s board of directors,’’. person serving as, or in the function of, be indemnified under this section. The revision reads as follows: president may be elected chairman of ■ 46. Revise the heading of § 7.2015 to the board. read as follows: § 7.2007 Filling vacancies and increasing ■ 44. Revise the heading of § 7.2013 to board of directors of a national bank other read as follows: § 7.2015 National bank cashier. than by shareholder action. * * * * * * * * * * § 7.2013 Fidelity bonds covering national ■ 47. Amend § 7.2016 by: bank officers and employees. ■ 39. Amend § 7.2008 by: ■ a. Revising the section heading; ■ a. Revising the section heading and * * * * * ■ b. Redesignating paragraphs (a) and paragraph (a); and ■ 45. Revise § 7.2014 to read as follows: (b) as paragraphs (a)(1) and (2), ■ respectively, and adding a heading for b. In paragraph (b): § 7.2014 Indemnification of national bank ■ i. Removing the phrase ‘‘Each director paragraph (a); and and Federal savings association institution- ■ shall execute’’ and adding in its place c. Adding a new paragraph (b). affiliated parties. The revision and additions read as the phrase ‘‘Each national bank director (a) Indemnification under State law. follows: must execute’’ in the first sentence; and Subject to the limitations of paragraph ■ ii. Removing the phrase ‘‘A director (b) of this section, a national bank or § 7.2016 Restricting transfer of national shall take’’ and adding in its place the Federal savings association may bank stock and record dates; stock certificates. phrase ‘‘A national bank director must indemnify an institution-affiliated party take’’ in the second sentence. for damages and expenses, including the (a) Restricting transfer of stock and The revision reads as follows: advancement of expenses and legal fees, record dates—*** (b) Bank stock certificates. (1) A § 7.2008 Oath of national bank directors. in accordance with the law of the State the bank or savings association has national bank may prescribe the manner (a) Administration of the oath. The designated for its corporate governance in which its stock must be transferred in oath of directors must be administered pursuant to § 7.2000(b) (for national its bylaws or articles of association. A by: banks), 12 CFR 5.21(j)(3)(ii) (for Federal bank issuing stock in certificated form (1) A notary public, including one mutual savings associations), or 12 CFR must comply with the requirements of who is a director but not an officer of 5.22(j)(2)(ii) (for Federal stock savings 12 U.S.C. 52, including as to: the national bank; or (i) The name and location of the bank; associations), provided such payments (2) Any person, including one who is (ii) The name of the holder of record are consistent with safe and sound a director but not an officer of the of the stock represented thereby; banking practices. The term national bank, having an official seal (iii) The number and class of shares ‘‘institution-affiliated party’’ has the and authorized by the State to which the certificate represents; same meaning as set forth at 12 U.S.C. administer oaths. (iv) If the bank issues more than one 1813(u). class of stock, the respective rights, * * * * * (b) Administrative proceedings or civil preferences, privileges, voting rights, ■ 40. Amend § 7.2009 by: actions initiated by Federal banking powers, restrictions, limitations, and ■ a. Revising the section heading; and agencies. With respect to an qualifications of each class of stock ■ b. Removing the word ‘‘shall’’ and administrative proceeding or civil issued (unless incorporated by reference adding in its place the word ‘‘must’’. action initiated by any Federal banking to the articles of association); The revision reads as follows: agency, a national bank or Federal (v) Signatures of the president and savings association may only make or cashier of the bank, or such other § 7.2009 Quorum of a national bank board agree to make indemnification payments of directors; proxies not permissible. officers as the bylaws of the bank to an institution-affiliated party that are provide; and * * * * * reasonable and consistent with the (vi) The seal of the bank. ■ 41. Amend § 7.2010 by: requirements of 12 U.S.C. 1828(k) and (2) The requirements of paragraph ■ a. Revising the section heading; and 12 CFR chapter III. (b)(1)(v) of this section may be met ■ b. Removing the phrase ‘‘affairs of the (c) Written agreement required for through the use of electronic means or bank shall’’ and adding in its place the advancement. Before advancing funds by facsimile. phrase ‘‘affairs of a national bank must’’ to an institutional-affiliated party under in the first sentence. this section, a national bank or Federal §§ 7.2017 and 7.2018 [Removed] The revision reads as follows: savings association must obtain a ■ 48. Remove §§ 7.2017 and 7.2018.

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■ 49. Revise the heading of § 7.2019 to authorize the board of directors to issue, Comptroller of the Currency read as follows: determine the terms of, repurchase, and (Comptroller), may declare any day a redeem one or more series of preferred legal holiday if emergency conditions § 7.2019 Loans secured by a national stock, if permitted by the corporate exist. That day is a legal holiday for bank’s own shares. governance provisions adopted by the national banks, Federal savings * * * * * bank under § 7.2000. To satisfy the associations, and Federal branches or § 7.2020 [Removed] shareholder approval requirements of 12 agencies in the affected geographic area U.S.C. 51a and 59, the adoption of such (i.e., throughout the United States, in a ■ 50. Remove § 7.2020. procedures must be approved by State, or in part of a State), and national ■ 51. Revise the heading of § 7.2021 to shareholders in advance through an banks, Federal savings associations, and read as follows: amendment to the national bank’s Federal branches and agencies may temporarily limit or suspend operations § 7.2021 National bank preemptive rights. articles of association. Any amendment to a national bank’s articles of at their affected offices, unless the * * * * * association that authorizes both the Comptroller by written order directs ■ 52. Amend § 7.2022 by: issuance and the repurchase and otherwise. Emergency conditions may ■ a. Revising the section heading; and redemption of shares must be approved be caused by acts of nature or of man ■ b. Removing the word ‘‘state’’ and by holders of two-thirds of the national and may include natural and other adding in its place the word ‘‘State’’. bank’s shares. disasters, public health or safety The revision reads as follows: (d) Share repurchase programs. emergencies, civil and municipal emergencies, and cyber threats or other § 7.2022 National bank voting trusts. Subject to the requirements of 12 U.S.C. 59, a national bank may establish a unauthorized intrusions (e.g., severe * * * * * program for the repurchase, from time to flooding, a pandemic, terrorism, a cyber- ■ 53. Revise the heading of § 7.2023 to time, of the national bank’s common or attack on bank systems, or a power read as follows: preferred stock, if permitted by the emergency declared by a local power company or government requesting that § 7.2023 National bank reverse stock corporate governance provisions splits. adopted by the bank under § 7.2000. To businesses in the affected area close). The Comptroller may issue a * * * * * satisfy the shareholder approval requirement of 12 U.S.C. 59, the proclamation authorizing the emergency § 7.2024 [Amended] repurchase program must be approved closing in anticipation of the emergency in advance by the holders of two-thirds condition, at the time of the emergency ■ 54. Amend § 7.2024(a) and (c) by condition, or soon thereafter. In the removing the word ‘‘shall’’ and adding of the national bank’s shares, including through an amendment to the national absence of a Comptroller declaration of in its place the word ‘‘must’’ wherever a bank holiday, a national bank, Federal it appears. bank’s articles of association that authorizes the board of directors to savings associations, or Federal branch ■ 55. Add § 7.2025 to read as follows: repurchase the national bank’s common or agency may choose to temporarily close offices in response to an § 7.2025 Capital stock-related activities of or preferred stock from time to time a national bank. under board-determined parameters that emergency condition. The national can limit the frequency, type, aggregate bank, Federal savings associations, or (a) In general. A national bank must Federal branch or agency should notify obtain the necessary shareholder limit, or purchase price of repurchases. (e) Preferred Stock Features. A the OCC of such temporary closure as approval required by 12 U.S.C. 51a, 57, soon as feasible. or 59 for any change in its permanent national bank’s preferred stock may be cumulative or non-cumulative and may (c) Emergency and ceremonial capital. An increase or decrease in the closings declared by a State or State amount of a national bank’s common or or may not have voting rights on one or more series. official. In the event a State or a legally preferred stock is a change in permanent authorized State official declares any ■ capital subject to the notice and 56. Revise the heading for subpart C day to be a legal holiday for emergency approval requirements of 12 CFR 5.46 to read as follows: or ceremonial reasons in that State or and applicable law. A national bank part of the State, that same day is a legal may obtain the required shareholder Subpart C—National Bank and Federal Savings Association Operations holiday for national banks, Federal approval of changes in permanent savings associations, and Federal capital, as provided in paragraphs (b), ■ 57. Revise § 7.3000 to read as follows: branches or agencies or their offices in (c), and (d) of this section. the affected geographic area. National (b) Issuance of previously approved § 7.3000 National bank and Federal banks, Federal savings associations, and and authorized common stock. In savings association operating hours and Federal branches or agencies or their compliance with 12 U.S.C. 57, a closings. affected offices may close their affected national bank may issue common stock (a) Operating hours. The board of offices or remain open on such a State- up to an amount previously approved directors of a national bank or Federal designated holiday, unless the and authorized in the national bank’s savings association, or an equivalent Comptroller by written order directs articles of association by holders of two- person or committee of a Federal branch otherwise. thirds of the national bank’s shares or agency, should review its hours of (d) Liability. A national bank, Federal without obtaining additional operations for customers and, savings association, or Federal branch or shareholder approval for each independently of any other bank, agency should assure that all liabilities subsequent issuance within the savings association, or Federal branch or or other obligations under the authorized amount. agency, take appropriate action to applicable law due to its closing are (c) Issuance, repurchase, and establish a schedule of operating hours satisfied. redemption of preferred stock pursuant for customers. (e) Definition. For the purpose of this to certain procedures. Subject to the (b) Emergency closings declared by subpart, the term ‘‘State’’ means any of requirements of 12 U.S.C. 51a and 59, a the Comptroller. Pursuant to 12 U.S.C. the several States, the District of national bank may adopt procedures to 95(b)(1) and 1463(a)(1)(A), the Columbia, the Commonwealth of Puerto

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Rico, the Northern Mariana Islands, determined that the following electronic PART 145—FEDERAL SAVINGS Guam, the Virgin Islands, American activities are incidental to the business ASSOCIATIONS—OPERATIONS Samoa, the Trust Territory of the Pacific of banking, pursuant to § 7.1000. This Islands, or any other territory or list of activities is illustrative and not ■ 61. The authority citation for part 145 possession of the United States. exclusive; the OCC may determine that continues to read as follows: § 7.3001 [Amended] other activities are permissible pursuant Authority: 12 U.S.C. 1462a, 1463, 1464, to this authority. 1828, 5412(b)(2)(B). ■ 58. Amend § 7.3001 by: ■ a. In paragraph (a)(1), removing the (a) Website development where § 145.121 [Removed] incidental to other banking services; phrase ‘‘Lease excess space’’ and adding ■ 62. Remove § 145.121. in its place the phrase ‘‘Consistent with (b) Internet access and email provided § 7.1024, lease excess space’’; on a non-profit basis as a promotional PART 160—LENDING AND ■ b. In paragraph (c) introductory text, activity; INVESTMENT removing the word ‘‘shall’’ and adding (c) Advisory and consulting services in its place the word ‘‘must’’; and ■ 63. The authority citation for part 160 on electronic activities where the ■ c. In paragraph (c)(3), removing the continues to read as follows: word ‘‘state’’ and adding in its place the services are incidental to customer use of electronic banking services; and Authority: 12 U.S.C. 1462a, 1463, 1464, word ‘‘State’’. 1467a, 1701j–3, 1828, 3803, 3806, (d) Sale of equipment that is 5412(b)(2)(B); 42 U.S.C. 4106. § § 7.4003 through 7.4005 [Removed] convenient or useful to customer’s use ■ 59. Remove §§ 7.4003 through 7.4005. of related electronic banking services, § 160.50 [Removed] ■ 60. Revise § 7.5001 to read as follows: such as specialized terminals for ■ 64. Remove § 160.50. scanning checks that will be deposited § 160.120 [Removed] § 7.5001 Electronic activities that are electronically by wholesale customers of incidental to the business of banking. banks under the Check Clearing for the ■ 65. Remove § 160.120. In addition to the electronic activities 21st Century Act, Public Law 108–100 specifically permitted in § 7.5004 (sale Brian P. Brooks, (12 U.S.C. 5001–5018) (the Check 21 of excess electronic capacity and by- Acting Comptroller of the Currency. Act). products) and § 7.5006 (incidental non- [FR Doc. 2020–26225 Filed 12–21–20; 8:45 am] financial data processing), the OCC has BILLING CODE 4810–33–P

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Reader Aids Federal Register Vol. 85, No. 246 Tuesday, December 22, 2020

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING DECEMBER

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 457...... 79779 Presidential Documents 2 CFR 984...... 79383 Executive orders and proclamations 741–6000 376...... 81781 3565...... 77985 The United States Government Manual 741–6000 3474...... 82037 Proposed Rules: Other Services 3 CFR 930...... 81425 Electronic and on-line services (voice) 741–6020 Proclamations: 8 CFR Privacy Act Compilation 741–6050 10121...... 77343 208...... 80274, 82260 10122...... 78193 214...... 82750 10123...... 78195 ELECTRONIC RESEARCH 235...... 80274 10124...... 79375 274a...... 82750 World Wide Web 10125...... 79377 1003 ...... 80274, 81588, 81598, 10126...... 81329 82750 Full text of the daily Federal Register, CFR and other publications 10127...... 82871 1103...... 81698, 82750 is located at: www.govinfo.gov. Executive Orders: 1208 ...... 80274, 81698, 82260, Federal Register information and research tools, including Public 13618...... 79379 82750 Inspection List and electronic text are located at: 13960...... 78939 1216...... 82750 www.federalregister.gov. 13961...... 79379 1235...... 80274 13962...... 79777 1240 ...... 81588, 81598, 82750 E-mail 13963...... 81331 1244...... 82750 13964...... 81333 FEDREGTOC (Daily Federal Register Table of Contents Electronic 1245...... 82750 13965...... 81337 Mailing List) is an open e-mail service that provides subscribers Proposed Rules: 13966...... 81777 with a digital form of the Federal Register Table of Contents. The 103...... 77016 digital form of the Federal Register Table of Contents includes Administrative Orders: 235...... 77016 HTML and PDF links to the full text of each document. Memorandums: 1001...... 78240 Memorandum of 1003...... 78240 To join or leave, go to https://public.govdelivery.com/accounts/ August 12, 2016 1208...... 78240 USGPOOFR/subscriber/new, enter your email address, then (revoked by 1214...... 78240 follow the instructions to join, leave, or manage your Memorandum of 1240...... 78240 subscription. December 10, 1245...... 78240 PENS (Public Law Electronic Notification Service) is an e-mail 2020) ...... 81775 1246...... 78240 service that notifies subscribers of recently enacted laws. Memorandum of 1292...... 78240 December 3, 2020 ...... 78945 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 9 CFR and select Join or leave the list (or change settings); then follow Memorandum of 201...... 79779 the instructions. December 3, 2020 ...... 78947 Memorandum of 317...... 81339 FEDREGTOC and PENS are mailing lists only. We cannot December 9, 2020 ...... 81755 381...... 81339 respond to specific inquiries. Memorandum of 416...... 81340 Reference questions. Send questions and comments about the December 10, 417...... 81340 Federal Register system to: [email protected] 2020 ...... 817753 500...... 81340 Notices: 590...... 81340 The Federal Register staff cannot interpret specific documents or Notice of December 591...... 81340 regulations. 16, 2020 ...... 82869 Proposed Rules: Space Policy 439...... 80668 FEDERAL REGISTER PAGES AND DATE, DECEMBER Directive–6 of December 16, 10 CFR 76949–77342...... 1 2020 ...... 8287 430 ...... 79802, 81341, 81359, 77343–77984...... 2 81558 77985–78196...... 3 5 CFR 431...... 79802 78197–78698...... 4 Proposed Rules: 1021...... 78197 78699–78938...... 7 351...... 81839 Proposed Rules: 78939–79116...... 8 430...... 81839 Ch. I...... 78046, 81849 79117–79378...... 9 2641...... 77014 26...... 81847, 82391 30...... 82950 79379–79776...... 10 6 CFR 79777–80580...... 11 40...... 82950 19...... 82037 80581–81084...... 14 50 ...... 79434, 81848, 82950 Proposed Rules: 70...... 82950 81085–81336...... 15 5...... 80667 72...... 82950 81337–81776...... 16 430 ...... 77017, 78964, 80982 81777–82290...... 17 7 CFR 431...... 78967, 82952 82291–82870...... 18 16...... 82037 82871–83404...... 21 301...... 81085 12 CFR 83405–83738...... 22 407...... 79779 3...... 77345, 80404

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4...... 77345, 83686 382...... 79742 14...... 81781 58...... 82905 5...... 80404, 83686 399...... 78707 25...... 81781 79...... 79118 7...... 80404, 83686 401...... 79566 81...... 81781 34...... 79385 404...... 79566 101...... 82332 29 CFR 52...... 77345 413...... 79566 102...... 82332 2...... 82037 145...... 83686 414...... 79566 133...... 81781 2509...... 81658 160...... 83686 415...... 79566 172...... 81781 2550...... 81658, 82798 204...... 79821 417...... 79566 178...... 81781 2590...... 81097 208...... 77345 420...... 79566 184...... 81781 4044...... 78742, 81122 209...... 79389 431...... 79566 201...... 81781 211...... 77345 433...... 79566 310...... 81781 30 CFR 212...... 77345 435...... 79566 369...... 81781 Proposed Rules: 213...... 79390 437...... 79566 501...... 81781 250...... 79266 217...... 77345 440...... 79566 582...... 81781 550...... 79266 225...... 77345 450...... 79566 1301...... 82333 926...... 81862 226...... 79385, 79394 460...... 79566 1308...... 81388 938...... 81864 235...... 77345 Proposed Rules: 1318...... 82333 948...... 81436 238...... 77345 39 ...... 78277, 78279, 78805, Proposed Rules: 950...... 81866 246...... 78949 78808, 78971, 78974, 78977, 1...... 82393 304...... 77345 79435, 79438, 79440, 79443, 152...... 82395 31 CFR 324...... 77345 79930, 80686, 80689, 80693, 169...... 82980 Proposed Rules: 337...... 77345 80696, 81157, 81160, 81162, 882...... 82990 33...... 78572 347...... 77345 81427, 81851, 82970, 82972, 1270...... 82990 348...... 77345 82975, 82977 1306...... 78282 32 CFR 614...... 77364, 82881 71 ...... 78811, 79446, 79448, 1308...... 78047, 79450 117...... 83300 701...... 83405 79934, 81167, 81431, 81433 1310...... 82984 Proposed Rules: Ch. X...... 77987 310...... 81438 1003...... 83409 15 CFR 22 CFR 1013...... 79390 705...... 81060 120...... 79836 33 CFR 1026 ...... 79385, 79394, 79400, 744...... 83416 205...... 82037 117...... 77994, 82355 79404, 83411 774...... 78684 228...... 81390 165 ...... 77994, 78232, 79854, 1206...... 82150 Ch. V...... 79427 82356, 82357, 82915, 83448 1225...... 82150 16 CFR Proposed Rules: 1240...... 82150 Proposed Rules: Proposed Rules: 181...... 78813 1282...... 82881 165...... 77093 432...... 82391 306...... 81854 1750...... 82150 801...... 77042, 77053 34 CFR Proposed Rules: 802...... 77042, 77053 23 CFR 24...... 78258 75...... 82037 803...... 77042, 77053 Proposed Rules: 25...... 78258 76...... 82037 470...... 80898 35...... 78258 600...... 79856 17 CFR 635...... 80898 192...... 78258 602...... 79856 3...... 78718 655...... 80898 327...... 78794 668...... 79856 36...... 82313 673...... 79856 741...... 78269 37...... 82313 24 CFR 1282...... 82965 674...... 79856 210...... 80508 5...... 82037 682...... 79856 13 CFR 230...... 78224 92...... 82037 685...... 79856 232...... 78224 103...... 80581 100...... 78957 Proposed Rules: 239...... 83162 120...... 78205, 80581 214...... 78230, 80616 300...... 82994 240...... 78224 121...... 80581 266...... 83435 249...... 78224, 83162 578...... 82037 36 CFR Proposed Rules: 270...... 78224, 83162 Proposed Rules: Proposed Rules: 120...... 80676 274...... 83162 123...... 80676 5...... 78295 1224...... 77095 Proposed Rules: 92...... 78295 1225...... 77095 14 CFR 229...... 80232 93...... 78295 1236...... 77095 1...... 79823 230...... 79936, 80232 574...... 78295 37 CFR 25...... 81782 239...... 79936, 80232 960...... 78295 27...... 79826, 83415 240...... 79936 966...... 78295 1...... 82917 982...... 78295 2...... 81123 39 ...... 76949, 76951, 76953, 18 CFR 76955, 77991, 78215, 78699, 42...... 79120, 82923 25 CFR 78702, 78954, 79408, 79411, 385...... 81798 Proposed Rules: 38 CFR 79413, 79415, 79418, 79828, 19 CFR 80589, 80590, 81376, 81378, 90...... 78296 50...... 82037 81381, 81383, 81385, 81790, Ch. I...... 83432, 83433 150...... 79965 61...... 82037 81792, 81795, 82299, 82302, 62...... 82037 20 CFR 26 CFR 82305, 82307, 82896, 82899, Proposed Rules: 82901 404...... 78164 1 ...... 76960, 76976, 77365, 36...... 79142 61...... 79823 416...... 78164 77952, 79837, 79853, 81391, 38...... 82399 71 ...... 76958, 78705, 79117, 702...... 80601 82355 79422, 79425, 79833, 79835, Proposed Rules: 54...... 81097 39 CFR 80593, 80594, 80595, 80596, 401...... 79963 301...... 83446 20...... 83450 80598, 81096, 82904 702...... 80698 602...... 77952 111...... 83450 95...... 82310 501...... 78234, 79432 97...... 78219, 78221 21 CFR 28 CFR 3030...... 81124 101...... 79823 1...... 81781 26...... 76979 3040...... 81124 107...... 79823 5...... 81781 38...... 82037 3045...... 81124 187...... 78223 12...... 81781 50...... 81409 3050...... 81124

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3055...... 81124 422...... 81781 170...... 78236 173...... 78029, 83366 423...... 81781 305...... 82037 174...... 78029, 83366 40 CFR 426...... 81781 307...... 81781 175...... 78029, 83366 9...... 78743 440...... 81781 1050...... 82037 176...... 78029, 83366 50...... 82684 441...... 81781 1304...... 78787 177...... 83366 52 ...... 77996, 79129, 80616 447...... 81781 1324...... 81781 178...... 78029, 83366 60...... 78412 476...... 78748 1325...... 81781 179...... 83366 63...... 77384, 78412 480...... 78748 1326...... 81781 180...... 78029, 83366 79...... 78412 482...... 81781 1328...... 81781 218...... 80544 80...... 78412 484...... 78748 Proposed Rules: 219...... 81290 82...... 79863 485...... 81781 147...... 78572 221...... 80544 131...... 82936 486...... 77898 150...... 78572 225...... 79130 180 ...... 77999, 78002, 81799, 495...... 78748 153...... 78572 232...... 80544 82939 512...... 77404 155...... 78572 234...... 80648 257...... 80626 1001...... 77684 156...... 78572, 82586 240...... 81290 282...... 79872 1003...... 77684 158...... 78572 242...... 81290 320...... 77384 1004...... 81781 170...... 82586 Proposed Rules: 721...... 78743 1008...... 81781 184...... 78572 192...... 81440 1042...... 78412 Proposed Rules: 1225...... 81854 195...... 81440 1043...... 78412 431...... 82586 214...... 79973 47 CFR 1065...... 78412 435...... 82586 236...... 82400 1090...... 78412 438...... 82586 1...... 78005 270...... 83484 Proposed Rules: 440...... 82586 9...... 78018 271...... 83484 52...... 78050, 82995 457...... 82586 73...... 78022, 78028 385...... 80745 123...... 80713 1001...... 81439 76...... 78237, 81805 391...... 80745 158...... 78300 Proposed Rules: 571...... 78058, 79456 180...... 82998 43 CFR 54...... 78814 1039...... 78075 233...... 80713 1820...... 81141 64...... 83000 1108...... 78075 257 ...... 78980, 80718, 83478 2560...... 79879 73...... 83001 282...... 79972 5000...... 82359 97...... 78815 5400...... 82359 50 CFR 41 CFR 5420...... 82359 48 CFR 17 ...... 78029, 81144, 81813, 60–1...... 79324 5440...... 82359 302...... 81781 82376 102–34...... 82359 5450...... 82359 326...... 81781 217...... 83451 5460...... 82359 Proposed Rules: 223...... 81822 42 CFR 5470...... 82359 2...... 78815 224...... 81822 2...... 80626 5500...... 82359 3...... 78815 424...... 81411 10...... 80632 7...... 78815 622...... 78792, 79135 44 CFR 23...... 81781 13...... 78815 635 ...... 77007, 79136, 81837 51c ...... 81781 64...... 81142 15...... 78815 648 ...... 79139, 80661, 81152, 52i ...... 81781 Proposed Rules: 17...... 78815 81155, 81421, 82944, 82946 56...... 81781 206...... 80719 52...... 78792 660...... 79880 57...... 81781 227...... 78300 665...... 77406, 79928 63...... 81781 45 CFR 252...... 78300 679 ...... 77406, 78038, 79139, 124...... 81781 1...... 78770 81155, 82389, 83473 405...... 78748 3...... 81781 49 CFR Proposed Rules: 411...... 77491, 81781 63...... 81781 26...... 80646 17...... 77108, 77408 412...... 78748, 81781 75...... 81781 106...... 83366 218...... 83001 413...... 78748 87...... 81781 107...... 83366 223...... 79980 414...... 78770 147...... 81097 171...... 78029, 83366 229...... 81168 417...... 78748 153...... 76979 172...... 78029, 83366 679...... 78076, 78096

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text will also be made H.J. Res. 107/P.L. 116–225 listserv.gsa.gov/cgi-bin/ available at https:// wa.exe?SUBED1=PUBLAWS- LIST OF PUBLIC LAWS Further Additional Continuing www.govinfo.gov. Some laws Appropriations Act, 2021 (Dec. L&A=1 may not yet be available. This is a continuing list of 18, 2020; 134 Stat. 1098) public bills from the current S. 910/P.L. 116–221 H.J. Res. 110/P.L. 116–226 Note: This service is strictly session of Congress which National Sea Grant College Extension of Continuing for email notification of new have become Federal laws. Program Amendments Act of Appropriations Act, 2021 (Dec. laws. The text of laws is not This list is also available 2020 (Dec. 18, 2020; 134 20, 2020; 134 Stat. 1099) available through this service. online at https:// Stat. 1057) Last List December 21, 2020 www.archives.gov/federal- PENS cannot respond to register/laws. S. 945/P.L. 116–222 specific inquiries sent to this Holding Foreign Companies address. The text of laws is not Accountable Act (Dec. 18, Public Laws Electronic published in the Federal 2020; 134 Stat. 1063) Notification Service Register but may be ordered S. 1069/P.L. 116–223 (PENS) in ‘‘slip law’’ (individual pamphlet) form from the Digital Coast Act (Dec. 18, Superintendent of Documents, 2020; 134 Stat. 1067) PENS is a free email U.S. Government Publishing S. 1982/P.L. 116–224 notification service of newly Office, Washington, DC 20402 Save Our Seas 2.0 Act (Dec. enacted public laws. To (phone, 202–512–1808). The 18, 2020; 134 Stat. 1072) subscribe, go to https://

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