Vol. 84 Wednesday, No. 39 February 27, 2019

Pages 6313–6650

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 84, No. 39

Wednesday, February 27, 2019

Agency for Healthcare Research and Quality Education Department NOTICES NOTICES Meetings: Applications for New Awards: Conference Grants, 6403 Full-Service Community Schools Program, 6389–6395 Screening and Management of Unhealthy Alcohol Use in Meetings: Primary Care: Dissemination and Implementation of National Assessment Governing Board, 6395–6396 PCOR Evidence, 6402–6403 Energy Department Agriculture Department See Federal Energy Regulatory Commission See Animal and Plant Health Inspection Service NOTICES See Forest Service Application to Export Electric Energy: See National Agricultural Statistics Service Dynasty Power, Inc., 6396–6397 See Rural Utilities Service NextEra Energy Marketing, LLC, 6397–6398 NOTICES Agency Information Collection Activities; Proposals, Environmental Protection Agency Submissions, and Approvals, 6354–6355 RULES Air Quality State Implementation Plans; Approvals and Animal and Plant Health Inspection Service Promulgations: NOTICES New Mexico; Approval of Revised Statutes; Error Environmental Assessments; Availability, etc.: Correction, 6334–6338 Release of Biological Control of Brazilian Peppertree, Approval of Operating Permits Program: 6355–6356 Kansas; Reporting Emission Data, Emission Fees and Process Information, 6338–6339 Architectural and Transportation Barriers Compliance Pesticide Tolerances: Board Abamectin, 6339–6344 PROPOSED RULES NOTICES Air Quality State Implementation Plans; Approvals and Meetings: Promulgations: Access Board, 6359–6360 New Mexico; Approval of Revised Statutes; Error Correction, 6353 Bureau of Consumer Financial Protection Federal Aviation Administration NOTICES RULES Meetings: Airworthiness Directives: Community Bank Advisory Council, 6382–6383 Airbus SAS Airplanes, 6315–6323 Consumer Advisory Board, 6383 Special Conditions: Credit Union Advisory Council, 6382 Boeing Model 777-9 Airplanes; Post-Crash Fire Survivability, Airplane Level of Safety Provided by Coast Guard Composite Fuel-Tank Structure, 6313–6315 NOTICES NOTICES Meetings: Environmental Impact Statements; Availability, etc.: National Offshore Safety Advisory Committee, 6407–6408 Charlotte Douglas International Airport, Charlotte, Mecklenburg County, NC; Cancellation, 6462–6463 Commerce Department Intent to Release Airport Property: See Foreign-Trade Zones Board Deadhorse Airport, Deadhorse, AK, 6462 See International Trade Administration See National Oceanic and Atmospheric Administration Federal Emergency Management Agency NOTICES Commodity Futures Trading Commission Flood Hazard Determinations, 6416–6417, 6428–6430 NOTICES Flood Hazard Determinations; Changes, 6417–6420, 6422– Agency Information Collection Activities; Proposals, 6428, 6430–6433 Submissions, and Approvals, 6381–6382 Flood Hazard Determinations; Proposals, 6408–6413

Comptroller of the Currency Federal Energy Regulatory Commission RULES NOTICES Inflation Adjustments for Civil Money Penalties, 6313 Applications: Georgia Power Co.; Comment Period Extension, 6399– Defense Department 6400 See Navy Department Combined Filings, 6398–6401 NOTICES Initial Market-Based Rate Filings Including Requests for Privacy Act; Matching Program, 6388–6389 Blanket Section 204 Authorizations: Privacy Act; Systems of Records, 6383–6388 Northland Power Energy Marketing (US) Inc., 6399

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Institution of Section 206 Proceeding and Refund Effective Service Coordinators in Multifamily Housing, 6433–6434 Date: Cheyenne Light, Fuel and Power Co., 6399 Interior Department Records Governing Off-the-Record Communications, 6401– See Fish and Wildlife Service 6402 See Land Management Bureau Sacramento Municipal Utility District’s Proposed Whitewater Recreation Management Plan for the Upper Internal Revenue Service American River Hydroelectric Project; Comment Period RULES Extension, 6400 Centralized Partnership Audit Regime, 6468–6573 Federal Motor Carrier Safety Administration International Trade Administration NOTICES Qualification of Drivers; Exemption Applications: NOTICES Implantable Cardioverter Defibrillators, 6463–6464 Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Federal Reserve System Carbon and Alloy Steel Cut-to-Length Plate from the NOTICES Federal Republic of Germany, 6372–6373 Changes in Bank Control: Certain Steel Nails from Taiwan, 6361–6362 Acquisitions of Shares of a Bank or Bank Holding Large Diameter Welded Pipe from the Republic of Korea, Company, 6402 6369–6372 Large Diameter Welded Pipe from the Republic of Fish and Wildlife Service Turkey, 6367–6369 NOTICES Determination of Sales at Less Than Fair Value: Meetings: Large Diameter Welded Pipe from Canada, 6378–6380 International Wildlife Conservation Council, 6436–6438 Large Diameter Welded Pipe from Greece, 6364–6366 Large Diameter Welded Pipe from the Republic of Korea, Food and Drug Administration 6374–6376 NOTICES Large Diameter Welded Pipe from the Republic of Guidance: Turkey, 6362–6364 Quality Considerations for Continuous Manufacturing; Duty-Free Entry of Scientific Instruments; Applications: Draft Guidance for Industry; Availability, 6403–6405 Fermi Research Alliance, LLC., et al., 6366–6367 Export Trade Certificate of Review, 6376–6378 Foreign-Trade Zones Board NOTICES International Trade Commission Proposed Foreign-Trade Zone under Alternative Site NOTICES Framework: Investigations; Determinations, Modifications, and Rulings, Grand Junction, CO, 6360–6361 etc.: Subzone Application: Certain Modular LED Display Panels and Components Adams Warehousing, LLC, Foreign-Trade Zone 59, Thereof, 6439 Lincoln, NE, 6360 Justice Department Forest Service NOTICES NOTICES Agency Information Collection Activities; Proposals, Environmental Impact Statements; Availability, etc.: Submissions, and Approvals: Elk Creek Watershed Project; Klamath National Forest, Application for Import Quota for Ephedrine, CA; Withdrawal, 6357 Pseudoephedrine, and Phenylpropanolamine, 6439– Lower McCloud Fuels Management Project, Shasta- 6440 Trinity National Forest, CA; Withdrawal, 6357 Generic Clearance for Cognitive, Pilot and Field Studies Meetings: for Bureau of Justice Statistics Data Collection Idaho Panhandle Resource Advisory Committee, 6357– Activities, 6440–6441 6358 Virginia Resource Advisory Committee, 6356–6357 Land Management Bureau Health and Human Services Department NOTICES New Standard and Expanded Amenity Recreation Fees: See Agency for Healthcare Research and Quality Cedar City, Moab, Monticello and Vernal Field Offices, See Food and Drug Administration Utah, 6438–6439 See National Institutes of Health

Homeland Security Department National Agricultural Statistics Service See Coast Guard NOTICES See Federal Emergency Management Agency Requests for Nominations: Advisory Committee on Agriculture Statistics, 6358 Housing and Urban Development Department NOTICES National Credit Union Administration Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Funding Opportunity: HUD Standardized Grant Application Forms, 6434–6436 Community Development Revolving Loan Fund Access Previous Participation Certification, 6436 for Credit Unions, 6441–6444

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National Endowment for the Arts State Department RULES NOTICES Procedures for Disclosure of Records under the Freedom of Agency Information Collection Activities; Proposals, Information Act, 6344–6352 Submissions, and Approvals: Smart Traveler Enrollment Program, 6460–6461 National Foundation on the Arts and the Humanities Meetings: See National Endowment for the Arts Modernizing the Columbia River Treaty Regime, 6461

National Institutes of Health Surface Transportation Board NOTICES NOTICES Agency Information Collection Activities; Proposals, Construction and Operation Exemption: Submissions, and Approvals, 6406–6407 Texas Railway Exchange, LLC, Galveston County, TX, Meetings: 6461–6462 Center for Scientific Review, 6405–6406 National Institute on Aging, 6405 Transportation Department National Oceanic and Atmospheric Administration See Federal Aviation Administration PROPOSED RULES See Federal Motor Carrier Safety Administration Taking and Importing Marine Mammals: Incidental to Southeast Fisheries Science Center and Treasury Department Texas Parks and Wildlife Department Fisheries See Comptroller of the Currency Research, 6576–6649 See Internal Revenue Service NOTICES RULES Meetings: Freedom of Information Act Regulations, 6324–6334 Atlantic Bluefin Tuna Management Strategy Evaluation; NOTICES Conference Call, 6380 Agency Information Collection Activities; Proposals, Columbia Basin Partnership Task Force of the Marine Submissions, and Approvals: Fisheries Advisory Committee, 6380–6381 Iranian Financial Sanctions Regulations Report on Closure by U.S. Financial Institutions of Navy Department Correspondent Accounts and Payable-Through NOTICES Accounts, 6465 Certificate of Alternate Compliance: Request for Discharge from Personal Liability under USS DELAWARE, 6389 Internal Revenue Code, 6464–6465

Nuclear Regulatory Commission Veterans Affairs Department NOTICES NOTICES Guidance: Meetings: Seismic Qualification of Electrical and Active Mechanical Veterans’ Family, Caregiver, and Survivor Advisory Equipment and Functional Qualification of Active Committee, 6465–6466 Mechanical Equipment for Nuclear Power Plants, 6444–6445

Railroad Retirement Board Separate Parts In This Issue NOTICES Meetings; Sunshine Act, 6445 Part II Treasury Department, Internal Revenue Service, 6468–6573 Rural Utilities Service NOTICES Part III Meetings: Commerce Department, National Oceanic and Atmospheric Cardinal-Hickory Creek 345-kv Transmission Line Administration, 6576–6649 Project, 6358–6359

Securities and Exchange Commission Reader Aids NOTICES Agency Information Collection Activities; Proposals, Consult the Reader Aids section at the end of this issue for Submissions, and Approvals, 6450, 6456–6457 phone numbers, online resources, finding aids, and notice Applications for Deregistration, 6458–6460 of recently enacted public laws. Applications: To subscribe to the Federal Register Table of Contents OBP Capital LLC, et al., 6457–6458 electronic mailing list, go to https://public.govdelivery.com/ Self-Regulatory Organizations; Proposed Rule Changes: accounts/USGPOOFR/subscriber/new, enter your e-mail Cboe Exchange, Inc., 6445–6450 address, then follow the instructions to join, leave, or NYSE Arca, Inc., 6451–6456 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 19...... 6313 109...... 6313 14 CFR 25...... 6313 39 (3 documents) ...6315, 6317, 6321 26 CFR 301...... 6468 31 CFR 1...... 6324 40 CFR 52...... 6334 70...... 6338 180...... 6339 Proposed Rules: 52...... 6353 45 CFR 1148...... 6344 50 CFR Proposed Rules: 219...... 6576

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Rules and Regulations Federal Register Vol. 84, No. 39

Wednesday, February 27, 2019

This section of the FEDERAL REGISTER airworthiness standards for transport- DC, between 9 a.m. and 5 p.m., Monday contains regulatory documents having general category airplanes. This design feature through Friday, except Federal holidays. applicability and legal effect, most of which is composite fuel-tank structure as it FOR FURTHER INFORMATION CONTACT: are keyed to and codified in the Code of relates to post-crash fire survivability. Suzanne Lucier, Propulsion and Federal Regulations, which is published under The applicable airworthiness 50 titles pursuant to 44 U.S.C. 1510. Mechanical Systems Section, AIR–672, regulations do not contain adequate or Transport Standards Branch, Policy and The Code of Federal Regulations is sold by appropriate safety standards for this Innovation Division, Aircraft the Superintendent of Documents. design feature. These special conditions Certification Service, Federal Aviation contain the additional safety standards Administration, 2200 South 216th that the Administrator considers Street, Des Moines, Washington 98198; DEPARTMENT OF THE TREASURY necessary to establish a level of safety telephone and fax 206–231–3173; email equivalent to that established by the [email protected]. Office of the Comptroller of the existing airworthiness standards. Currency SUPPLEMENTARY INFORMATION: The FAA DATES: This action is effective on Boeing has determined that notice of, and 12 CFR Parts 19 and 109 on February 27, 2019. Send comments opportunity for prior public comment on or before April 15, 2019. on, these special conditions is Notice of Inflation Adjustments for ADDRESSES: Send comments identified impracticable because the substance of Civil Money Penalties by Docket No. FAA–2018–1017 using these special conditions has been published in the Federal Register for Correction any of the following methods: • Federal eRegulations Portal: Go to public comment in several prior In rule document 2018–27784, http://www.regulations.gov/ and follow instances with no substantive comments appearing on pages 66599 through the online instructions for sending your received. Therefore, the FAA has 66601, in the issue of Thursday, comments electronically. determined that prior public notice and December 27, 2018, make the following • Mail: Send comments to Docket comment are unnecessary, and finds corrections: Operations, M–30, U.S. Department of that, for the same reason, good cause exists for adopting these special ■ 1. On page 66600, in the table, in the Transportation (DOT), 1200 New Jersey Avenue SE, Room W12–140, West conditions upon publication in the second column, on the tenth line, ‘‘Tier Federal Register. 322,013,399’’ should read, ‘‘Tier 3’’. Building Ground Floor, Washington, ■ 2. On the same page, in the same DC, 20590–0001. Comments Invited • table, in the third column, on the tenth Hand Delivery or Courier: Take We invite interested people to take line, the blank space should be replaced comments to Docket Operations in part in this rulemaking by sending with, ‘‘2 2,013,399’’. Room W12–140 of the West Building written comments, data, or views. The Ground Floor at 1200 New Jersey [FR Doc. C1–2018–27784 Filed 2–26–19; 8:45 am] most helpful comments reference a Avenue SE, Washington, DC, between 9 BILLING CODE 1301–00–D specific portion of the special a.m. and 5 p.m., Monday through conditions, explain the reason for any Friday, except Federal holidays. recommended change, and include • Fax: Fax comments to Docket DEPARTMENT OF TRANSPORTATION supporting data. Operations at 202–493–2251. We will consider all comments we Federal Aviation Administration Privacy: The FAA will post all receive by the closing date for comments it receives, without change, comments. We may change these special 14 CFR Part 25 to http://www.regulations.gov/, conditions based on the comments we including any personal information the receive. [Docket No. FAA–2018–1017; Special commenter provides. Using the search Conditions No. 25–741–SC] function of the docket website, anyone Background can find and read the electronic form of Special Conditions: Boeing Model 777– On March 12, 2015, Boeing applied all comments received into any FAA 9 Airplanes; Post-Crash Fire for an amendment to Type Certificate docket, including the name of the Survivability, Airplane Level of Safety No. T00001SE to include the new 777– individual sending the comment (or Provided by Composite Fuel-Tank 9 airplane. This airplane, which is a signing the comment for an association, Structure derivative of the Boeing Model 777 business, labor union, etc.). DOT’s airplane currently approved under Type AGENCY: Federal Aviation complete Privacy Act Statement can be Certificate No. T00001SE, is a twin- Administration (FAA), DOT. found in the Federal Register published engine, transport-category airplane with ACTION: Final special conditions; request on April 11, 2000 (65 FR 19477–19478). seating for 495 passengers and a for comments. Docket: Background documents or maximum takeoff weight of 775,000 comments received may be read at pounds. SUMMARY: These special conditions are http://www.regulations.gov/ at any time. issued for The Boeing Company Follow the online instructions for Type Certification Basis (Boeing) Model 777–9 airplane. This accessing the docket or go to Docket Under the provisions of title 14, Code airplane will have a novel or unusual Operations in Room W12–140 of the of Federal Regulations (14 CFR) 21.101, design feature when compared to the West Building Ground Floor at 1200 Boeing must show that the Model 777– state of technology envisioned in the New Jersey Avenue SE, Washington, 9 airplane meets the applicable

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provisions of the regulations listed in carrying characteristics during a fuel-fed construction, the applicant must Type Certificate No. T00001SE, or the ground fire. These properties demonstrate that the airplane has applicable regulations in effect on the significantly delay wing collapse and sufficient post-crash survivability to date of application for the change, burn-through for a time interval that enable occupants to safely evacuate in except for earlier amendments as agreed usually exceeds evacuation times. In the event that the wings are exposed to upon by the FAA. addition, as an aluminum fuel tank is a large fuel-fed fire. Factors in fuel-tank If the Administrator finds that the heated with significant quantities of fuel survivability are the structural integrity applicable airworthiness regulations inside, fuel vapor accumulates in the of the wing and tank, flammability of (i.e., 14 CFR part 25) do not contain ullage space, exceeding the upper the tank, burn-through resistance of the adequate or appropriate safety standards flammability limit relatively quickly, wing skin, and the presence of auto- for the Boeing Model 777–9 airplane and thus reducing the threat of a fuel- ignition threats during exposure to a because of a novel or unusual design tank explosion prior to fuel-tank burn- fire. The FAA assessed post-crash feature, special conditions are through. The service history of survival time during the adoption of prescribed under the provisions of conventional aluminum airplanes has Amendment 25–111 for fuselage burn- § 21.16. shown that fuel-tank explosions caused through protection. Studies conducted Special conditions are initially by ground fires have been rare on by and on behalf of the FAA indicated applicable to the model for which they airplanes configured with flame that, following a survivable accident, are issued. Should the type certificate arrestors in the fuel-tank vent lines. Fuel prevention of fuselage burn-through for for that model be amended later to tanks constructed with composite approximately 5 minutes can include any other model that materials, a new technology, may or significantly enhance survivability. (See incorporates the same novel or unusual may not have equivalent capability. report numbers DOT/FAA/AR–99/57 Current regulations were developed design feature, or should any other and DOT/FAA/AR–02/49.) Research and have evolved under the assumption model already included on the same reveals little benefit in requiring wing- that wing construction would be of type certificate be modified to skin design to prevent wing-skin burn- aluminum materials, which provide incorporate the same novel or unusual through beyond five minutes, due to the inherent properties. Current regulations design feature, these special conditions effects of the fuel fire itself on the rest would also apply to the other model may not be adequate when applied to airplanes constructed of different of the airplane. That assessment was under § 21.101. carried out based on accidents involving In addition to the applicable materials. airplanes with conventional fuel tanks, airworthiness regulations and special Aluminum has the following and considering the ability of ground conditions, the Boeing Model 777–9 properties with respect to fuel tanks and personnel to rescue occupants. In airplane must comply with the fuel-vent fuel-fed external fires. addition, AC 20–135 indicates that, and exhaust-emission requirements of Aluminum is highly thermally when aluminum is used for fuel tanks, 14 CFR part 34, and the noise- conductive. It readily transmits the heat the tank should withstand the effects of certification requirements of 14 CFR of a fuel-fed external fire to fuel in the fire for 5 minutes without failure. part 36. tank. This has the benefit of rapidly The FAA issues special conditions, as driving the fuel-tank ullage to exceed Therefore, to be consistent with existing defined in 14 CFR 11.19, in accordance the upper flammability limit prior to capability and related requirements, the with § 11.38, and they become part of burn-through of the fuel-tank skin, or applicant airplane fuel tanks must be the type certification basis under heating of the wing upper surface above capable of resisting a post-crash fire for § 21.101. the auto-ignition temperature. This at least 5 minutes. In demonstrating greatly reduces the threat of fuel-tank compliance, the applicant must address Novel or Unusual Design Features explosion. a range of fuel loads from minimum to The Boeing Model 777–9 airplane will Aluminum panels at thicknesses maximum, as well as any other critical incorporate the following novel or previously used in wing lower surfaces fuel load. unusual design feature: of large transport-category airplanes These special conditions contain the Composite fuel-tank structure as it have been fire resistant as defined in 14 additional safety standards that the relates to post-crash fire survivability. CFR part 1, and Advisory Circular (AC) Administrator considers necessary to Discussion 20–135, ‘‘Powerplant Installation and establish a level of safety equivalent to Propulsion System Component Fire that established by the existing As with previous applicant airplane Protection Test Methods, Standards and airworthiness standards. designs with underwing-mounted Criteria.’’ engines, the wing tanks and center tanks The heat-absorption capacity of both Applicability are located in proximity to the aluminum and fuel prevent burn- As discussed above, these special passengers and near the engines. through and wing collapse for a time conditions are applicable to the Boeing Experience indicates post-crash interval that generally exceeds the Model 777–9 airplane. Should Boeing survivability is greatly influenced by the passenger evacuation time. size and intensity of any fire that occurs. The extensive use of composite apply at a later date for a change to the Tests conducted at the FAA Technical materials in the design of the Boeing type certificate to include another Center have shown the ability of Model 777–9 airplane wing and fuel- model incorporating the same novel or aluminum wing surfaces to withstand tank structure is considered a major unusual design feature, these special post-crash fire conditions. These tests change from conventional and conditions would apply to that model as have verified adequate dissipation of traditional methods of construction. The well. heat across wetted aluminum fuel-tank applicable airworthiness regulations do Conclusion surfaces so that localized hot spots do not contain specific standards for post- not occur, thus minimizing the threat of crash fire-safety performance of wing This action affects only a certain explosion. This inherent capability of and fuel-tank skin or structure. novel or unusual design feature on one aluminum to dissipate heat also allows To provide the same level of safety as model of airplane. It is not a rule of the wing lower surface to retain its load- exists with conventional airplane general applicability.

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List of Subjects in 14 CFR Part 25 SUMMARY: We are adopting a new Discussion Aircraft, Aviation safety, Reporting airworthiness directive (AD) for certain We issued a notice of proposed and recordkeeping requirements. Airbus SAS Model A318 series rulemaking (NPRM) to amend 14 CFR airplanes; Model A319 series airplanes; part 39 by adding an AD that would Authority Citation Model A320 series airplanes; and Model apply to certain Airbus SAS Model The authority citation for these A321 series airplanes. This AD was A318 series airplanes; Model A319 special conditions is as follows: prompted by a revision of an series airplanes; Model A320 series airworthiness limitation item (ALI) airplanes; and Model A321–111, –112, Authority: 49 U.S.C. 106(f), 106(g), 40113, document, which requires more 44701, 44702, 44704. –131, –211, –212, –213, –231, –232, restrictive maintenance requirements –251N, –253N, and –271N airplanes. The Special Conditions and airworthiness limitations. This AD The NPRM published in the Federal Accordingly, pursuant to the requires revising the operator’s Register on July 17, 2018 (83 FR 33159). authority delegated to me by the maintenance or inspection program, as The NPRM was prompted by a revision Administrator, the following special applicable, to incorporate new of an ALI document, which requires conditions are issued as part of the type maintenance requirements and more restrictive maintenance certification basis for Boeing Model airworthiness limitations. We are requirements and airworthiness 777–9 airplanes. issuing this AD to address the unsafe limitations. The NPRM proposed to In addition to complying with 14 CFR condition on these products. require revising the operator’s part 25 regulations governing the fire- DATES: This AD is effective April 3, maintenance or inspection program, as safety performance of the fuel tanks, 2019. applicable, to incorporate new wings, and nacelle, the Boeing Model The Director of the Federal Register maintenance requirements and 777–9 airplane must demonstrate approved the incorporation by reference airworthiness limitations. acceptable post-crash survivability in of a certain publication listed in this AD We issued a supplemental NPRM the event the wings are exposed to a as of April 3, 2019. (SNPRM) to amend 14 CFR part 39 by large fuel-fed ground fire. Boeing must ADDRESSES: For service information adding an AD that would apply to demonstrate that the wing and fuel-tank identified in this final rule, contact certain Airbus SAS Model A318 series design can endure an external fuel-fed Airbus SAS, Airworthiness Office— airplanes; Model A319 series airplanes; pool fire for at least 5 minutes. This EIAS, Rond-Point Emile Dewoitine No: Model A320 series airplanes; and Model must be demonstrated for minimum fuel 2, 31700 Blagnac Cedex, France; A321 series airplanes. The SNPRM loads (not less than reserve fuel levels) telephone +33 5 61 93 36 96; fax +33 5 published in the Federal Register on and maximum fuel loads (maximum- 61 93 44 51; email account.airworth- November 8, 2018 (83 FR 55830). We range fuel quantities), and other [email protected]; internet http:// issued the SNPRM to include revised identified critical fuel loads. www.airbus.com. You may view this restrictive requirements and add Considerations must include fuel-tank service information at the FAA, airplanes to the applicability. flammability, burn-through resistance, Transport Standards Branch, 2200 We are issuing this AD to address a wing structural-strength-retention South 216th St., Des Moines, WA. For safety-significant latent failure (that is properties, and auto-ignition threats information on the availability of this not annunciated), which, in during a ground-fire event for the material at the FAA, call 206–231–3195. combination with one or more other required duration. It is also available on the internet at specific failures or events, could result http://www.regulations.gov by searching in a hazardous or catastrophic failure Issued in Des Moines, Washington, on for and locating Docket No. FAA–2018– February 19, 2019. condition. 0554. Victor Wicklund, The European Aviation Safety Agency (EASA), which is the Technical Agent Manager, Transport Standards Branch, Policy Examining the AD Docket for the Member States of the European and Innovation Division, Aircraft You may examine the AD docket on Certification Service. Union, has issued EASA AD 2018–0180, the internet at http:// dated August 27, 2018 (referred to after [FR Doc. 2019–03343 Filed 2–26–19; 8:45 am] www.regulations.gov by searching for this as the Mandatory Continuing BILLING CODE 4910–13–P and locating Docket No. FAA–2018– Airworthiness Information, or ‘‘the 0554; or in person at Docket Operations MCAI’’), to correct an unsafe condition between 9 a.m. and 5 p.m., Monday DEPARTMENT OF TRANSPORTATION for certain Airbus SAS Model A318 through Friday, except Federal holidays. series airplanes; Model A319 series Federal Aviation Administration The AD docket contains this final rule, airplanes; Model A320 series airplanes; the regulatory evaluation, any and Model A321 series airplanes. The 14 CFR Part 39 comments received, and other MCAI states: information. The address for Docket The airworthiness limitations for the [Docket No. FAA–2018–0554; Product Operations (phone: 800–647–5527) is U.S. Department of Transportation, Airbus A320 family aeroplanes, which are Identifier 2018–NM–064–AD; Amendment approved by EASA, are currently defined and 39–19569; AD 2019–03–17] Docket Operations, M–30, West published in the A318/A319/A320/A321 Building Ground Floor, Room W12–140, ALS [Airworthiness Limitations Section] RIN 2120–AA64 1200 New Jersey Avenue SE, document(s). The airworthiness limitations Washington, DC 20590. applicable to the Certification Maintenance Airworthiness Directives; Airbus SAS FOR FURTHER INFORMATION CONTACT: Requirements (CMR), which are approved by Airplanes Sanjay Ralhan, Aerospace Engineer, EASA, are published in ALS Part 3. International Section, Transport Failure to accomplish these instructions AGENCY: Federal Aviation could result in an unsafe condition. Administration (FAA), Department of Standards Branch, FAA, 2200 South Previously, EASA issued AD 2017–0168 to Transportation (DOT). 216th St., Des Moines, WA 98198; require accomplishment of all maintenance telephone and fax 206–231–3223. ACTION: Final rule. tasks as described in ALS Part 3 at Revision SUPPLEMENTARY INFORMATION: 05.

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Since that [EASA] AD was issued, Airbus 1 work-hour per airplane. Since (4) Will not have a significant published the ALS, including new and/or operators incorporate maintenance or economic impact, positive or negative, more restrictive requirements, and new A321 inspection program changes for their on a substantial number of small entities models were certified and added to the affected fleet(s), we have determined under the criteria of the Regulatory Applicability of the ALS. For the reason described above, this that a per-operator estimate is more Flexibility Act. accurate than a per-airplane estimate. [EASA] AD retains the requirements of EASA List of Subjects in 14 CFR Part 39 AD 2017–0168, which is superseded, Therefore, we estimate the total cost per expands the Applicability and requires operator to be $7,650 (90 work-hours × Air transportation, Aircraft, Aviation accomplishment of the actions specified in $85 per work-hour) safety, Incorporation by reference, the ALS. Safety. Authority for This Rulemaking You may examine the MCAI in the Adoption of the Amendment Title 49 of the United States Code AD docket on the internet at http:// Accordingly, under the authority www.regulations.gov by searching for specifies the FAA’s authority to issue rules on aviation safety. Subtitle I, delegated to me by the Administrator, and locating Docket No. FAA–2018– the FAA amends 14 CFR part 39 as 0554. section 106, describes the authority of the FAA Administrator. Subtitle VII: follows: Comments Aviation Programs, describes in more PART 39—AIRWORTHINESS detail the scope of the Agency’s We gave the public the opportunity to DIRECTIVES participate in developing this final rule. authority. We have considered the comment We are issuing this rulemaking under ■ 1. The authority citation for part 39 received. United Airlines indicated its the authority described in Subtitle VII, continues to read as follows: support for the SNPRM. Part A, Subpart III, Section 44701: ‘‘General requirements.’’ Under that Authority: 49 U.S.C. 106(g), 40113, 44701. Conclusion section, Congress charges the FAA with § 39.13 [Amended] We reviewed the relevant data, promoting safe flight of civil aircraft in ■ 2. The FAA amends § 39.13 by adding considered the comment received, and air commerce by prescribing regulations the following new airworthiness determined that air safety and the for practices, methods, and procedures directive (AD): public interest require adopting this the Administrator finds necessary for final rule as proposed, except for minor safety in air commerce. This regulation 2019–03–17 Airbus SAS: Amendment 39– editorial changes. We have determined is within the scope of that authority 19569; Docket No. FAA–2018–0554; that these minor changes: because it addresses an unsafe condition Product Identifier 2018–NM–064–AD. • Are consistent with the intent that that is likely to exist or develop on (a) Effective Date was proposed in the SNPRM for products identified in this rulemaking This AD is effective April 3, 2019. addressing the unsafe condition; and action. • Do not add any additional burden This AD is issued in accordance with (b) Affected ADs upon the public than was already authority delegated by the Executive This AD affects AD 2017–25–04, proposed in the SNPRM. Director, Aircraft Certification Service, Amendment 39–19118 (82 FR 58098, as authorized by FAA Order 8000.51C. December 11, 2017) (‘‘AD 2017–25–04’’). Related Service Information Under 1 In accordance with that order, issuance CFR Part 51 (c) Applicability of ADs is normally a function of the This AD applies to the Airbus SAS Airbus has issued Airbus A318/A319/ Compliance and Airworthiness airplanes identified in paragraphs (c)(1), A320/A321 Airworthiness Limitations Division, but during this transition (c)(2), (c)(3), and (c)(4) of this AD, certificated Section (ALS) Part 3, Certification period, the Executive Director has in any category, with an original certificate Maintenance Requirements (CMR), delegated the authority to issue ADs of airworthiness or original export certificate Revision 06, dated June 13, 2018. The applicable to transport category of airworthiness issued on or before June 13, service information describes airplanes and associated appliances to 2018. (1) Model A318–111, –112, –121, and –122 maintenance instructions and the Director of the System Oversight airworthiness limitations, including airplanes. Division. (2) Model A319–111, –112, –113, –114, updated inspections and intervals, to be Regulatory Findings –115, –131, –132, and –133 airplanes. incorporated into the operator’s (3) Model A320–211, –212, –214, –216, maintenance or inspection program. This AD will not have federalism –231, –232, –233, –251N, and –271N This service information is reasonably implications under Executive Order airplanes. available because the interested parties 13132. This AD will not have a (4) Model A321–111, –112, –131, –211, have access to it through their normal substantial direct effect on the States, on –212, –213, –231, –232, –251N, –251NX, course of business or by the means the relationship between the national –252N, –252NX, –253N, –253NX, –271N, –271NX, –272N, and –272NX airplanes. identified in the ADDRESSES section. government and the States, or on the distribution of power and (d) Subject Costs of Compliance responsibilities among the various Air Transport Association (ATA) of We estimate that this AD affects 1,250 levels of government. America Code 05, Time Limits/Maintenance airplanes of U.S. registry. We estimate For the reasons discussed above, I Checks. the following costs to comply with this certify that this AD: (e) Reason AD: (1) Is not a ‘‘significant regulatory We have determined that revising the action’’ under Executive Order 12866, This AD was prompted by a revision of an operator’s maintenance or inspection (2) Is not a ‘‘significant rule’’ under airworthiness limitation item (ALI) program takes an average of 90 work- document, which requires more restrictive the DOT Regulatory Policies and maintenance requirements and airworthiness hours per operator, although we Procedures (44 FR 11034, February 26, limitations. We are issuing this AD to address recognize that this number may vary 1979), a safety-significant latent failure (that is not from operator to operator. In the past, (3) Will not affect intrastate aviation annunciated), which, in combination with we have estimated that this action takes in Alaska, and one or more other specific failures or events,

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could result in a hazardous or catastrophic Approval (DOA). If approved by the DOA, DEPARTMENT OF TRANSPORTATION failure condition. the approval must include the DOA- authorized signature. Federal Aviation Administration (f) Compliance (3) Required for Compliance (RC): If any Comply with this AD within the service information contains procedures or compliance times specified, unless already tests that are identified as RC, those 14 CFR Part 39 done. procedures and tests must be done to comply [Docket No. FAA–2018–0904; Product with this AD; any procedures or tests that are (g) Revision of Maintenance or Inspection Identifier 2018–NM–108–AD; Amendment not identified as RC are recommended. Those 39–19575; AD 2019–03–23] Program procedures and tests that are not identified Within 90 days after the effective date of as RC may be deviated from using accepted RIN 2120–AA64 this AD, revise the operator’s maintenance or methods in accordance with the operator’s inspection program, as applicable, to maintenance or inspection program without Airworthiness Directives; Airbus SAS incorporate the information specified in obtaining approval of an AMOC, provided Airplanes Airbus A318/A319/A320/A321 the procedures and tests identified as RC can Airworthiness Limitations Section (ALS) Part be done and the airplane can be put back in AGENCY: Federal Aviation 3, Certification Maintenance Requirements an airworthy condition. Any substitutions or Administration (FAA), Department of (CMR), Revision 06, dated June 13, 2018 changes to procedures or tests identified as Transportation (DOT). (‘‘ALS Part 3, CMR, R6’’). The initial RC require approval of an AMOC. ACTION: Final rule. compliance time for accomplishing the tasks (k) Related Information specified in ALS Part 3, CMR, R6, is at the SUMMARY: We are adopting a new applicable time specified in ALS Part 3, (1) Refer to Mandatory Continuing CMR, R6, or within 90 days after the effective Airworthiness Information (MCAI) EASA AD airworthiness directive (AD) for all date of this AD, whichever occurs later. 2018–0180, dated August 27, 2018, for Airbus SAS Model A330–200, –200 related information. This MCAI may be Freighter, and –300 series airplanes, and (h) Terminating Actions for AD 2017–25–04 found in the AD docket on the internet at Model A340–200, –300, –500, and –600 Accomplishing the actions required by http://www.regulations.gov by searching for series airplanes. This AD was prompted paragraph (g) of this AD terminates all of the and locating Docket No. FAA–2018–0554. by a report that certain sensor struts, in requirements of AD 2017–25–04. (2) For more information about this AD, contact Sanjay Ralhan, Aerospace Engineer, the case of down drive element (i) No Alternative Actions or Intervals International Section, Transport Standards disconnection, would be unable to After the operator’s maintenance or Branch, FAA, 2200 South 216th St., Des provide failure detection information for inspection program, as applicable, has been Moines, WA 98198; telephone and fax 206– flap movements. This AD requires revised as required by paragraph (g) of this 231–3223. repetitive inspections of certain drive AD, no alternative actions (e.g., inspections) (l) Material Incorporated by Reference station elements and sensor struts; an or intervals may be used unless the actions inspection of certain other drive station and intervals are approved as an alternative (1) The Director of the Federal Register approved the incorporation by reference elements if necessary; and corrective method of compliance (AMOC) in actions if necessary. We are issuing this accordance with the procedures specified in (IBR) of the service information listed in this paragraph (j)(1) of this AD. paragraph under 5 U.S.C. 552(a) and 1 CFR AD to address the unsafe condition on part 51. these products. (j) Other FAA AD Provisions (2) You must use this service information DATES: This AD is effective April 3, The following provisions also apply to this as applicable to do the actions required by 2019. this AD, unless this AD specifies otherwise. AD: The Director of the Federal Register (1) Alternative Methods of Compliance (i) Airbus A318/A319/A320/A321 (AMOCs): The Manager, International Airworthiness Limitations Section (ALS) Part approved the incorporation by reference Section, Transport Standards Branch, FAA, 3, Certification Maintenance Requirements of certain publications listed in this AD has the authority to approve AMOCs for this (CMR), Revision 06, dated June 13, 2018. as of April 3, 2019. AD, if requested using the procedures found (ii) [Reserved] ADDRESSES: For service information in 14 CFR 39.19. In accordance with 14 CFR (3) For service information identified in this AD, contact Airbus SAS, Airworthiness identified in this final rule, contact 39.19, send your request to your principal Airbus SAS, Airworthiness Office— inspector or local Flight Standards District Office—EIAS, Rond-Point Emile Dewoitine Office, as appropriate. If sending information No: 2, 31700 Blagnac Cedex, France; EAL, Rond-Point Emile Dewoitine No: directly to the International Section, send it telephone +33 5 61 93 36 96; fax +33 5 61 2, 31700 Blagnac Cedex, France; phone: to the attention of the person identified in 93 44 51; email account.airworth-eas@ +33 5 61 93 36 96; fax: +33 5 61 93 45 paragraph (k)(2) of this AD. Information may airbus.com; internet http://www.airbus.com. 80; email: airworthiness.A330-A340@ be emailed to: 9-ANM-116-AMOC- (4) You may view this service information airbus.com; internet: http:// [email protected]. at the FAA, Transport Standards Branch, www.airbus.com. You may view this 2200 South 216th St., Des Moines, WA. For (i) Before using any approved AMOC, service information at the FAA, notify your appropriate principal inspector, information on the availability of this material at the FAA, call 206–231–3195. Transport Standards Branch, 2200 or lacking a principal inspector, the manager South 216th St., Des Moines, WA. For of the local flight standards district office/ (5) You may view this service information certificate holding district office. that is incorporated by reference at the information on the availability of this (ii) AMOCs approved previously for AD National Archives and Records material at the FAA, call 206–231–3195. 2017–25–04, or AD 2014–22–08, Amendment Administration (NARA). For information on It is also available on the internet at 39–18013 (79 FR 67042, November 12, 2014), the availability of this material at NARA, call http://www.regulations.gov by searching that allow incorporation of ALS Part 3, CMR, 202–741–6030, or go to: http:// for and locating Docket No. FAA–2018– R6, are considered approved as AMOCs for www.archives.gov/federal-register/cfr/ibr- 0904. the corresponding provisions of this AD. locations.html. (2) Contacting the Manufacturer: For any Issued in Des Moines, Washington, on Examining the AD Docket requirement in this AD to obtain corrective February 14, 2019. You may examine the AD docket on actions from a manufacturer, the action must Michael Kaszycki, be accomplished using a method approved the internet at http:// by the Manager, International Section, Acting Director, System Oversight Division, www.regulations.gov by searching for Transport Standards Branch, FAA; or the Aircraft Certification Service. and locating Docket No. FAA–2018– European Aviation Safety Agency (EASA); or [FR Doc. 2019–03268 Filed 2–26–19; 8:45 am] 0904; or in person at Docket Operations Airbus SAS’s EASA Design Organization BILLING CODE 4910–13–P between 9 a.m. and 5 p.m., Monday

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through Friday, except Federal holidays. Union, has issued EASA AD 2018–0151, We received no comments on the NPRM The AD docket contains this final rule, dated July 16, 2018 (referred to after this or on the determination of the cost to the regulatory evaluation, any as the Mandatory Continuing the public. comments received, and other Airworthiness Information, or ‘‘the information. The address for Docket MCAI’’), to correct an unsafe condition Conclusion Operations (phone: 800–647–5527) is for all Airbus SAS Model A330–200 We reviewed the relevant data and U.S. Department of Transportation, Freighter series, Model A330–200 series, determined that air safety and the Docket Operations, M–30, West Model A330–300 series, Model A340– public interest require adopting this Building Ground Floor, Room W12–140, 200 series, Model A340–300 series, final rule as proposed, except for minor 1200 New Jersey Avenue SE, Model A340–500 series, and Model editorial changes. We have determined Washington, DC 20590. A340–600 series airplanes. The MCAI that these minor changes: FOR FURTHER INFORMATION CONTACT: states: • Are consistent with the intent that Vladimir Ulyanov, Aerospace Engineer, Design features of the track station 4 sensor was proposed in the NPRM for International Section, Transport struts, respectively installed on the right Standards Branch, FAA, 2200 South hand (RH) and left hand (LH) wings of an addressing the unsafe condition; and 216th St., Des Moines, WA 98198; aeroplane, ensure detection of any abnormal • Do not add any additional burden phone and fax: 206–231–3229. flap movement in case of a mechanical DSE upon the public than was already [drive station element] disconnection at the proposed in the NPRM. SUPPLEMENTARY INFORMATION: level of the flap track station 4 or flap track Discussion station 5. Evidence was collected revealing Related Service Information Under 1 that the track station 4 sensor strut, in case CFR Part 51 We issued a notice of proposed of a down drive element disconnection, rulemaking (NPRM) to amend 14 CFR would be unable to provide failure detection Airbus has issued the following part 39 by adding an AD that would information. service information. This condition, if not detected and apply to all Airbus SAS Model A330– • 200, –200 Freighter, and –300 series corrected, in the case of an additional failure Airbus Service Bulletin A330–27– on the remaining flap drive station, could airplanes, and Model A340–200, –300, 3226, dated April 5, 2018. lead to a complete flap disconnection, • –500, and –600 series airplanes. The possibly resulting in loss of control of the Airbus Service Bulletin A340–27– NPRM published in the Federal aeroplane. 4206, dated April 3, 2018. Register on November 5, 2018 (83 FR To address this potential unsafe condition, • Airbus Service Bulletin A340–27– 55303). The NPRM was prompted by a Airbus published the applicable SB [Airbus 5071, dated April 3, 2018. report that certain sensor struts, in the Service Bulletin A330–27–3226, dated April This service information describes case of down drive element 5, 2018; Airbus Service Bulletin A340–27– 4206, dated April 3, 2018; or Airbus Service procedures for repetitive detailed disconnection, would be unable to Bulletin A340–27–5071, dated April 3, 2018; inspections of the LH and RH track provide failure detection information. as applicable] to provide inspection station 4 drive station elements; The NPRM proposed to require instructions of the track station 4 and track repetitive general visual inspections of repetitive inspections of certain drive station 5 DSE and sensor struts of the LH and the LH and RH track station 4 sensor station elements and sensor struts; an RH wings. struts; a detailed inspection of the track inspection of certain other drive station For the reasons described above, this station 5 drive station elements if any elements if necessary; and corrective [EASA] AD requires repetitive [detailed] inspections of the LH and RH track station discrepancy is found during a general actions if necessary. 4 [DSE, repetitive general visual inspections visual inspection; and corrective actions We are issuing this AD to address of the LH and RH track station 4 sensor abnormal flap movement due to (i.e., replacement of affected parts). struts,] and [for certain airplanes, a one-time These documents are distinct since they mechanical drive station element detailed inspection of the LH or RH, as disconnection at flap track station 4 or applicable] track station 5 DSE * * * and, apply to different models. This service station 5 which could lead to depending on findings, accomplishment of information is reasonably available undetected down drive shaft applicable corrective action(s). because the interested parties have access to it through their normal course disconnection. Such a condition could You may examine the MCAI in the of business or by the means identified result in complete flap disconnection in AD docket on the internet at http:// in the ADDRESSES section. the case of additional failure on the www.regulations.gov by searching for remaining flap drive station, and could and locating Docket No. FAA–2018– Costs of Compliance ultimately result in loss of control of the 0904. airplane. We estimate that this AD affects 105 The European Aviation Safety Agency Comments airplanes of U.S. registry. We estimate (EASA), which is the Technical Agent We gave the public the opportunity to the following costs to comply with this for the Member States of the European participate in developing this final rule. AD:

ESTIMATED COSTS FOR REQUIRED ACTIONS *

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

Up to 7 work-hours × $85 per hour = $595 ...... $0 Up to $595 ...... Up to $62,475. * Table does not include estimated costs for reporting.

We estimate that it would take about The average labor rate is $85 per hour. on U.S. operators to be $8,925, or $85 1 work-hour per product to comply with Based on these figures, we estimate the per product. the reporting requirement in this AD. cost of reporting the inspection results We have received no definitive data that would enable us to provide cost

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estimates for the on-condition actions of ADs is normally a function of the (c) Applicability specified in this AD. Compliance and Airworthiness This AD applies to the Airbus SAS According to the manufacturer, some Division, but during this transition airplanes identified in paragraphs (c)(1) or all of the costs of this AD may be period, the Executive Director has through (c)(7) of this AD, certificated in any covered under warranty, thereby delegated the authority to issue ADs category, all manufacturer serial numbers. reducing the cost impact on affected applicable to transport category (1) Model A330–223F and –243F airplanes. individuals. We do not control warranty airplanes and associated appliances to (2) Model A330–201, –202, –203, –223, and coverage for affected individuals. As a the Director of the System Oversight –243 airplanes. result, we have included all known Division. (3) Model A330–301, –302, –303, –321, costs in our cost estimate. –322, –323, –341, –342, and –343 airplanes. Regulatory Findings (4) Model A340–211, –212, and –213 Paperwork Reduction Act airplanes. This AD will not have federalism (5) Model A340–311, –312, and –313 A federal agency may not conduct or implications under Executive Order sponsor, and a person is not required to airplanes. 13132. This AD will not have a (6) Model A340–541 airplanes. respond to, nor shall a person be subject substantial direct effect on the States, on (7) Model A340–642 airplanes. to penalty for failure to comply with a the relationship between the national (d) Subject collection of information subject to the government and the States, or on the requirements of the Paperwork distribution of power and Air Transport Association (ATA) of Reduction Act unless that collection of responsibilities among the various America Code 27, Flight controls. information displays a current valid levels of government. (e) Reason OMB control number. The control For the reasons discussed above, I This AD was prompted by a report that the number for the collection of information certify that this AD: required by this AD is 2120–0056. The right-hand (RH) and left-hand (LH) track (1) Is not a ‘‘significant regulatory station 4 sensor struts, in the case of down paperwork cost associated with this AD action’’ under Executive Order 12866, drive element disconnection, would be has been detailed in the Costs of (2) Is not a ‘‘significant rule’’ under unable to provide failure detection Compliance section of this document the DOT Regulatory Policies and information for flap movements. We are and includes time for reviewing Procedures (44 FR 11034, February 26, issuing this AD to address abnormal flap instructions, as well as completing and 1979), movement due to mechanical drive station reviewing the collection of information. (3) Will not affect intrastate aviation element disconnection at flap track station 4 Therefore, all reporting associated with or station 5 which could lead to undetected in Alaska, and this AD is mandatory. Comments down drive shaft disconnection. Such a (4) Will not have a significant concerning the accuracy of this burden condition could result in complete flap economic impact, positive or negative, and suggestions for reducing the burden disconnection in the case of additional on a substantial number of small entities should be directed to the FAA at 800 failure on the remaining flap drive station, under the criteria of the Regulatory Independence Ave. SW, Washington, and could ultimately result in loss of control Flexibility Act. DC 20591, ATTN: Information of the airplane. Collection Clearance Officer, AES–200. List of Subjects in 14 CFR Part 39 (f) Compliance Authority for This Rulemaking Air transportation, Aircraft, Aviation Comply with this AD within the safety, Incorporation by reference, compliance times specified, unless already Title 49 of the United States Code done. specifies the FAA’s authority to issue Safety. rules on aviation safety. Subtitle I, Adoption of the Amendment (g) Definitions section 106, describes the authority of For the purpose of this AD, the drive the FAA Administrator. Subtitle VII: Accordingly, under the authority station elements are defined as the down Aviation Programs, describes in more delegated to me by the Administrator, drive, down drive shaft, geared rotary detail the scope of the Agency’s the FAA amends 14 CFR part 39 as actuator (gearbox), geared rotary actuator authority. follows: (output lever and fork end), and drive strut. We are issuing this rulemaking under PART 39—AIRWORTHINESS (h) Detailed and General Visual Inspections the authority described in Subtitle VII, DIRECTIVES (1) At the applicable times specified in Part A, Subpart III, Section 44701: paragraphs (h)(1)(i) and (h)(1)(ii) of this AD, ‘‘General requirements.’’ Under that ■ 1. The authority citation for part 39 and thereafter not to exceed the applicable section, Congress charges the FAA with continues to read as follows: intervals specified in table 1 to paragraph promoting safe flight of civil aircraft in (h)(1) of this AD, do a detailed inspection of Authority: 49 U.S.C. 106(g), 40113, 44701. air commerce by prescribing regulations the LH and RH track station 4 drive station for practices, methods, and procedures § 39.13 [Amended] elements for corrosion or ruptured, loose, or the Administrator finds necessary for missing components (including any attached ■ safety in air commerce. This regulation 2. The FAA amends § 39.13 by adding bolts and nuts that are loose, broken, or is within the scope of that authority the following new airworthiness missing) and a general visual inspection of because it addresses an unsafe condition directive (AD): the LH and RH track station 4 sensor struts that is likely to exist or develop on 2019–03–23 Airbus SAS: Amendment 39– for corrosion or ruptured, loose, or missing components (including any attached bolts products identified in this rulemaking 19575; Docket No. FAA–2018–0904; Product Identifier 2018–NM–108–AD. that are loose, broken, or missing), in action. accordance with the Accomplishment This AD is issued in accordance with (a) Effective Date Instructions of Airbus Service Bulletin A330– authority delegated by the Executive This AD is effective April 3, 2019. 27–3226, dated April 5, 2018; Airbus Service Director, Aircraft Certification Service, Bulletin A340–27–4206, dated April 3, 2018; as authorized by FAA Order 8000.51C. (b) Affected ADs or Airbus Service Bulletin A340–27–5071, In accordance with that order, issuance None. dated April 3, 2018; as applicable.

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(i) For airplanes that, as of the effective or Airbus Service Bulletin A340–27–5071, to the attention of the person identified in date of this AD, have accumulated less than dated April 3, 2018; as applicable, or using paragraph (l)(2) of this AD. Information may 1,000 flight cycles since first flight: Before a method approved by the Manager, be emailed to: 9-ANM-116-AMOC- exceeding 24 months since first flight or International Section, Transport Standards [email protected]. Before using any within 18 months after the effective date of Branch, FAA; or EASA; or Airbus SAS’s approved AMOC, notify your appropriate this AD, whichever occurs later, but without EASA DOA. If approved by the DOA, the principal inspector, or lacking a principal exceeding 2,300 flight cycles since first flight. approval must include the DOA-authorized inspector, the manager of the local flight (ii) For airplanes that, as of the effective signature. standards district office/certificate holding date of this AD, have accumulated 1,000 or (3) If, during any detailed inspection district office. more flight cycles since first flight: Within required by paragraph (h)(2) of this AD, any (2) Contacting the Manufacturer: For any 1,000 flight cycles or 12 months, whichever corrosion is detected or any ruptured, loose, requirement in this AD to obtain corrective occurs first after the effective date of this AD. or missing components (including any (2) If, during any general visual inspection attached bolts and nuts that are loose, actions from a manufacturer, the action must required by paragraph (h)(1) of this AD, any broken, or missing) are detected, before be accomplished using a method approved corrosion is detected or any ruptured, loose, further flight, replace each affected part with by the Manager, International Section, or missing components (including any a serviceable part in accordance with the Transport Standards Branch, FAA; or using attached bolts that are loose, broken, or Accomplishment Instructions of Airbus a method approved by the Manager, missing) are detected, before further flight, Service Bulletin A330–27–3226, dated April International Section, Transport Standards accomplish a detailed inspection of the 5, 2018; Airbus Service Bulletin A340–27– Branch, FAA; or EASA; or Airbus SAS’s applicable LH or RH track station 5 drive 4206, dated April 3, 2018; or Airbus Service EASA DOA. If approved by the DOA, the station elements for corrosion or ruptured, Bulletin A340–27–5071, dated April 3, 2018; approval must include the DOA-authorized loose, or missing components (including any as applicable, or using a method approved by signature. attached bolts and nuts that are loose, the Manager, International Section, Transport (3) Required for Compliance (RC): If any broken, or missing) in accordance with the Standards Branch, FAA; or EASA; or Airbus service information contains procedures or Accomplishment Instructions of Airbus SAS’s EASA DOA. If approved by the DOA, tests that are identified as RC, those Service Bulletin A330–27–3226, dated April the approval must include the DOA- procedures and tests must be done to comply 5, 2018; Airbus Service Bulletin A340–27– authorized signature. with this AD; any procedures or tests that are 4206, dated April 3, 2018; or Airbus Service (j) Reporting not identified as RC are recommended. Those Bulletin A340–27–5071, dated April 3, 2018; procedures and tests that are not identified as applicable. At the applicable time specified in paragraph (j)(1) or (j)(2) of this AD: Report the as RC may be deviated from using accepted (i) Corrective Actions results (positive or negative) of each methods in accordance with the operator’s (1) If, during any detailed inspection inspection required by paragraphs (h)(1) and maintenance or inspection program without required by paragraph (h)(1) of this AD, any (h)(2) of this AD to Airbus Service Bulletin obtaining approval of an AMOC, provided corrosion is detected or any ruptured, loose, Reporting Online Application on Airbus the procedures and tests identified as RC can or missing components (including any World (https://w3.airbus.com/), or submit the be done and the airplane can be put back in attached bolts and nuts that are loose, results to Airbus in accordance with the an airworthy condition. Any substitutions or broken, or missing) are detected, before instructions of Airbus Service Bulletin A330– changes to procedures or tests identified as further flight, replace each affected part with 27–3226, dated April 5, 2018; Airbus Service RC require approval of an AMOC. a serviceable part in accordance with the Bulletin A340–27–4206, dated April 3, 2018; (4) Reporting Requirements: A federal Accomplishment Instructions of Airbus or Airbus Service Bulletin A340–27–5071, agency may not conduct or sponsor, and a Service Bulletin A330–27–3226, dated April dated April 3, 2018. person is not required to respond to, nor 5, 2018; Airbus Service Bulletin A340–27– (1) If the inspection was done on or after shall a person be subject to a penalty for 4206, dated April 3, 2018; or Airbus Service the effective date of this AD: Submit the failure to comply with a collection of Bulletin A340–27–5071, dated April 3, 2018; report within 90 days after the inspection. information subject to the requirements of as applicable, or using a method approved by (2) If the inspection was done before the the Paperwork Reduction Act unless that the Manager, International Section, Transport effective date of this AD: Submit the report collection of information displays a current Standards Branch, FAA; or the European within 90 days after the effective date of this valid OMB Control Number. The OMB Aviation Safety Agency (EASA); or Airbus AD. Control Number for this information SAS’s EASA Design Organization Approval (k) Other FAA AD Provisions collection is 2120–0056. Public reporting for (DOA). If approved by the DOA, the approval this collection of information is estimated to must include the DOA-authorized signature. The following provisions also apply to this be approximately 1 hour per response, (2) If, during any general visual inspection AD: required by paragraph (h)(1) of this AD, any (1) Alternative Methods of Compliance including the time for reviewing instructions, corrosion is detected or any ruptured, loose, (AMOCs): The Manager, International completing and reviewing the collection of or missing components (including any Section, Transport Standards Branch, FAA, information. All responses to this collection attached bolts that are loose, broken, or has the authority to approve AMOCs for this of information are mandatory. Comments missing) are detected, before further flight, AD, if requested using the procedures found concerning the accuracy of this burden and replace each affected part with a serviceable in 14 CFR 39.19. In accordance with 14 CFR suggestions for reducing the burden should part in accordance with the Accomplishment 39.19, send your request to your principal be directed to the FAA at: 800 Independence Instructions of Airbus Service Bulletin A330– inspector or local Flight Standards District Ave. SW, Washington, DC 20591, Attn: 27–3226, dated April 5, 2018; Airbus Service Office, as appropriate. If sending information Information Collection Clearance Officer, Bulletin A340–27–4206, dated April 3, 2018; directly to the International Section, send it AES–200.

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(l) Related Information DEPARTMENT OF TRANSPORTATION comments received, and other (1) Refer to Mandatory Continuing information. The address for Docket Airworthiness Information (MCAI) EASA AD Federal Aviation Administration Operations (phone: 800–647–5527) is 2018–0151, dated July 16, 2018, for related U.S. Department of Transportation, information. This MCAI may be found in the 14 CFR Part 39 Docket Operations, M–30, West AD docket on the internet at http:// [Docket No. FAA–2018–1003; Product Building Ground Floor, Room W12–140, www.regulations.gov by searching for and Identifier 2018–NM–133–AD; Amendment 1200 New Jersey Avenue SE, locating Docket No. FAA–2018–0904. 39–19567; AD 2019–03–15] Washington, DC 20590. (2) For more information about this AD, FOR FURTHER INFORMATION CONTACT: RIN 2120–AA64 contact Vladimir Ulyanov, Aerospace Vladimir Ulyanov, Aerospace Engineer, Engineer, International Section, Transport Airworthiness Directives; Airbus SAS International Section, Transport Standards Branch, FAA, 2200 South 216th Airplanes Standards Branch, FAA, 2200 South St., Des Moines, WA 98198; phone and fax: 216th St., Des Moines, WA 98198; 206–231–3229. AGENCY: Federal Aviation phone and fax: 206–231–3229. Administration (FAA), Department of (m) Material Incorporated by Reference SUPPLEMENTARY INFORMATION: Transportation (DOT). (1) The Director of the Federal Register Discussion ACTION: Final rule. approved the incorporation by reference We issued a notice of proposed (IBR) of the service information listed in this SUMMARY: We are adopting a new rulemaking (NPRM) to amend 14 CFR paragraph under 5 U.S.C. 552(a) and 1 CFR airworthiness directive (AD) for certain part 39 by adding an AD that would part 51. Airbus SAS Model A330–201, –202, and apply to certain Airbus SAS Model (2) You must use this service information –203 airplanes, and Model A330–301, A330–201, –202, and –203 airplanes, as applicable to do the actions required by –302, and –303 airplanes. This AD was and Model A330–301, –302, and –303 this AD, unless this AD specifies otherwise. prompted by reports of damaged drain airplanes. The NPRM published in the (i) Airbus Service Bulletin A330–27–3226, pipes located above the lower aft pylon Federal Register on December 6, 2018 dated April 5, 2018. fairing (LAPF), caused by a contact (83 FR 62738). The NPRM was (ii) Airbus Service Bulletin A340–27–4206, between the drain pipe and the two u- prompted by reports of damaged drain dated April 3, 2018. shape ribs of the LAPF. This AD pipes located above the LAPF, caused (iii) Airbus Service Bulletin A340–27– requires a special detailed inspection for by a contact between the drain pipe and 5071, dated April 3, 2018. damage, and corrective actions if the two u-shape ribs of the LAPF. The (3) For service information identified in necessary. We are issuing this AD to this AD, contact Airbus SAS, Airworthiness NPRM proposed to require a special address the unsafe condition on these detailed inspection for damage, and Office—EAL, Rond-Point Emile Dewoitine products. No: 2, 31700 Blagnac Cedex, France; phone: corrective actions if necessary. +33 5 61 93 36 96; fax: +33 5 61 93 45 80; DATES: This AD is effective April 3, We are issuing this AD to address email: airworthiness.A330–A340@ 2019. damaged drain pipes located above the airbus.com; internet: http://www.airbus.com. The Director of the Federal Register LAPF, which, combined with an (4) You may view this service information approved the incorporation by reference additional independent failure, could at the FAA, Transport Standards Branch, of certain publications listed in this AD lead to hydraulic leakage in the LAPF 2200 South 216th St., Des Moines, WA. For as of April 3, 2019. box, possibly resulting in a temporary uncontrolled fire and consequent information on the availability of this ADDRESSES: For service information material at the FAA, call 206–231–3195. identified in this final rule, contact reduced control of the airplane. The European Aviation Safety Agency (5) You may view this service information Airbus SAS, Airworthiness Office— (EASA), which is the Technical Agent that is incorporated by reference at the EAL, Rond-Point Emile Dewoitine No: for the Member States of the European National Archives and Records 2, 31700 Blagnac Cedex, France; phone: Union, has issued EASA AD 2018–0198, Administration (NARA). For information on +33 5 61 93 36 96; fax: +33 5 61 93 45 dated September 6, 2018 (referred to the availability of this material at NARA, call 80; email: airworthiness.A330-A340@ after this as the Mandatory Continuing 202–741–6030, or go to: http:// airbus.com; internet: http:// Airworthiness Information, or ‘‘the www.archives.gov/federal-register/cfr/ibr- www.airbus.com. You may view this MCAI’’), to correct an unsafe condition locations.html. service information at the FAA, for certain Airbus SAS Model A330– Transport Standards Branch, 2200 Issued in Des Moines, Washington, on 201, –202, and –203 airplanes, and South 216th St., Des Moines, WA. For February 14, 2019. Model A330–301, –302, and –303 information on the availability of this Michael Kaszycki, airplanes. The MCAI states: material at the FAA, call 206–231–3195. Acting Director, System Oversight Division, Some cases of damaged drain pipes, Part Aircraft Certification Service. It is also available on the internet at http://www.regulations.gov by searching Number F7173000700000, located above the [FR Doc. 2019–03256 Filed 2–26–19; 8:45 am] for and locating Docket No. FAA–2018– Lower Aft Pylon Fairing (LAPF) and BILLING CODE 4910–13–P dedicated to drain pylon compartment A in 1003. case of hydraulic fluid leakage, were Examining the AD Docket reported. Subsequent examination identified that the cracks were caused by a contact You may examine the AD docket on between the drain pipe and the two U-Shape the internet at http:// Ribs of the LAPF. This interference condition www.regulations.gov by searching for can be present during the installation of the and locating Docket No. FAA–2018– LAPF assembly to the pylon. The trailing 1003; or in person at Docket Operations edge assembly of the fairing has an internal frame bracket and shear clip which can cause between 9 a.m. and 5 p.m., Monday chafing with the hydraulic drain pipes. through Friday, except Federal holidays. This condition, if not detected and The AD docket contains this final rule, corrected, combined with an additional the regulatory evaluation, any independent failure as hydraulic leakage in

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pylon compartment A, could lead to Comments information describes procedures for hydraulic leakage in the LAPF box. In replacement of the pylon drain pipe addition, the hydraulic fluid may flow We gave the public the opportunity to participate in developing this final rule. clamp blocks of the LAPFs of the left- forward of the LAPF and leak above engine hand (LH) and right-hand (RH) pylons hot surfaces, possibly resulting in a We have considered the comment received. Air Line Pilots Association, and modification of the LAPFs. temporary uncontrolled fire in the pylon • Airbus Service Bulletin A330–54– compartment A, and consequent reduced International (ALPA) indicated its control of the aeroplane. support for the NPRM. 3042, dated May 17, 2018. This service To address this unsafe condition, Airbus information describes procedures for a Conclusion issued the inspection SB [Airbus Service special detailed inspection for damage Bulletin A330–54–3042, dated May 17, 2018] We reviewed the relevant data, (including but not limited to cracks and to provide instructions for a special detailed considered the comment received, and leaks of the pylon drain pipe, and inspection (SDI) of the LAPF drain pipes. determined that air safety and the contact, interference, and chafing of the For the reasons described above, this public interest require adopting this internal frame bracket and the shear clip [EASA] AD requires a one-time SDI final rule as proposed, except for minor of the trailing edge assembly of the (borescope inspection method) of the LAPF editorial changes. We have determined LAPF with the aircraft pylon drain of each pylon [for damage (including but not that these minor changes: pipe), and corrective actions. Corrective limited to cracks and leaks of the hydraulic • Are consistent with the intent that actions include replacement of the drain pipe, and contact, interference, and pylon drain pipe at the LH or RH pylon. chafing of the internal frame bracket and the was proposed in the NPRM for addressing the unsafe condition; and This service information is reasonably shear clip of the trailing edge assembly of the • LAPF with the aircraft hydraulic drain pipe)] Do not add any additional burden available because the interested parties and, depending on findings, replacement of upon the public than was already have access to it through their normal the LAPF drain pipes and clamp block, and proposed in the NPRM. course of business or by the means identified in the ADDRESSES section. rework of the U-shape ribs. Related Service Information Under 1 You may examine the MCAI in the CFR Part 51 Costs of Compliance AD docket on the internet at http:// Airbus has issued the following We estimate that this AD affects 10 www.regulations.gov by searching for service information. airplanes of U.S. registry. We estimate and locating Docket No. FAA–2018– • Airbus Service Bulletin A330–54– the following costs to comply with this 1003. 3041, dated May 17, 2018. This service AD:

ESTIMATED COSTS FOR REQUIRED ACTIONS

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

2 work-hours × $85 per hour = $170 ...... $0 $170 $1,700

We estimate the following costs to do of any required actions. We have no way that might need these on-condition any necessary on-condition actions that of determining the number of aircraft actions: would be required based on the results

ESTIMATED COSTS OF ON-CONDITION ACTIONS

Cost per Labor cost Parts cost product

29 work-hours × $85 per hour = $2,465 ...... $1,640 $4,105

According to the manufacturer, some We are issuing this rulemaking under In accordance with that order, issuance or all of the costs of this AD may be the authority described in Subtitle VII, of ADs is normally a function of the covered under warranty, thereby Part A, Subpart III, Section 44701: Compliance and Airworthiness reducing the cost impact on affected ‘‘General requirements.’’ Under that Division, but during this transition individuals. We do not control warranty section, Congress charges the FAA with period, the Executive Director has coverage for affected individuals. As a promoting safe flight of civil aircraft in delegated the authority to issue ADs result, we have included all known air commerce by prescribing regulations applicable to transport category costs in our cost estimate. for practices, methods, and procedures airplanes and associated appliances to the Administrator finds necessary for the Director of the System Oversight Authority for This Rulemaking safety in air commerce. This regulation Division. is within the scope of that authority Regulatory Findings Title 49 of the United States Code because it addresses an unsafe condition specifies the FAA’s authority to issue that is likely to exist or develop on This AD will not have federalism rules on aviation safety. Subtitle I, products identified in this rulemaking implications under Executive Order section 106, describes the authority of action. 13132. This AD will not have a the FAA Administrator. Subtitle VII: This AD is issued in accordance with substantial direct effect on the States, on Aviation Programs, describes in more authority delegated by the Executive the relationship between the national detail the scope of the Agency’s Director, Aircraft Certification Service, government and the States, or on the authority. as authorized by FAA Order 8000.51C. distribution of power and

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responsibilities among the various between the drain pipe and the two u-shape the approval must include the DOA levels of government. ribs of the LAPF. We are issuing this AD to authorized signature. For the reasons discussed above, I address damaged drain pipes located above (3) Required for Compliance (RC): If any certify that this AD: the LAPF, which, combined with an service information contains procedures or (1) Is not a ‘‘significant regulatory additional independent failure, could lead to tests that are identified as RC, those hydraulic leakage in the LAPF box, possibly procedures and tests must be done to comply action’’ under Executive Order 12866, resulting in a temporary uncontrolled fire with this AD; any procedures or tests that are (2) Is not a ‘‘significant rule’’ under and consequent reduced control of the not identified as RC are recommended. Those the DOT Regulatory Policies and airplane. procedures and tests that are not identified Procedures (44 FR 11034, February 26, as RC may be deviated from using accepted (f) Compliance 1979), methods in accordance with the operator’s (3) Will not affect intrastate aviation Comply with this AD within the maintenance or inspection program without in Alaska, and compliance times specified, unless already obtaining approval of an AMOC, provided (4) Will not have a significant done. the procedures and tests identified as RC can economic impact, positive or negative, (g) One-Time Inspections be done and the airplane can be put back in an airworthy condition. Any substitutions or on a substantial number of small entities Within 26 months after the effective date under the criteria of the Regulatory changes to procedures or tests identified as of this AD, accomplish a one-time special RC require approval of an AMOC. Flexibility Act. detailed inspection of the pylon drain pipes (j) Related Information List of Subjects in 14 CFR Part 39 (inside and outside) on the left-hand and right-hand pylons, located above both LAPFs, (1) Refer to Mandatory Continuing Air transportation, Aircraft, Aviation for contact with the U-shaped ribs of the Airworthiness Information (MCAI) EASA AD safety, Incorporation by reference, LAPF and damage (including but not limited 2018–0198, dated September 6, 2018, for Safety. to cracks and leaks of the pylon drain pipe, related information. This MCAI may be and contact, interference, and chafing of the found in the AD docket on the internet at Adoption of the Amendment internal frame bracket and the shear clip of http://www.regulations.gov by searching for Accordingly, under the authority the trailing edge assembly of the LAPF with and locating Docket No. FAA–2018–1003. delegated to me by the Administrator, the pylon drain pipe) in accordance with the (2) For more information about this AD, Accomplishment Instructions of Airbus the FAA amends 14 CFR part 39 as contact Vladimir Ulyanov, Aerospace Service Bulletin A330–54–3042, dated May Engineer, International Section, Transport follows: 17, 2018. Standards Branch, FAA, 2200 South 216th PART 39—AIRWORTHINESS (h) Corrective Actions St., Des Moines, WA 98198; phone and fax: 206–231–3229. DIRECTIVES If, during any inspection required by paragraph (g) of this AD, any damage is (k) Material Incorporated by Reference ■ 1. The authority citation for part 39 found, at the applicable time specified in (1) The Director of the Federal Register continues to read as follows: Airbus Service Bulletin A330–54–3042, approved the incorporation by reference dated May 17, 2018, accomplish the Authority: 49 U.S.C. 106(g), 40113, 44701. (IBR) of the service information listed in this applicable corrective actions on the affected paragraph under 5 U.S.C. 552(a) and 1 CFR § 39.13 [Amended] pylon in accordance with the part 51. Accomplishment Instructions of Airbus ■ 2. The FAA amends § 39.13 by adding (2) You must use this service information Service Bulletin A330–54–3042, dated May as applicable to do the actions required by the following new airworthiness 17, 2018; and Airbus Service Bulletin A330– this AD, unless this AD specifies otherwise. directive (AD): 54–3041, dated May 17, 2018. (i) Airbus Service Bulletin A330–54–3041, 2019–03–15 Airbus SAS: Amendment 39– (i) Other FAA AD Provisions dated May 17, 2018. (ii) Airbus Service Bulletin A330–54–3042, 19567; Docket No. FAA–2018–1003; The following provisions also apply to this dated May 17, 2018. Product Identifier 2018–NM–133–AD. AD: (3) For service information identified in (1) Alternative Methods of Compliance (a) Effective Date this AD, contact Airbus SAS, Airworthiness (AMOCs): The Manager, International This AD is effective April 3, 2019. Office—EAL, Rond-Point Emile Dewoitine Section, Transport Standards Branch, FAA, No: 2, 31700 Blagnac Cedex, France; phone: (b) Affected ADs has the authority to approve AMOCs for this +33 5 61 93 36 96; fax: +33 5 61 93 45 80; AD, if requested using the procedures found None. email: [email protected]; in 14 CFR 39.19. In accordance with 14 CFR internet: http://www.airbus.com. (c) Applicability 39.19, send your request to your principal (4) You may view this service information inspector or local Flight Standards District This AD applies to the Airbus SAS at the FAA, Transport Standards Branch, airplanes identified in paragraphs (c)(1) and Office, as appropriate. If sending information directly to the International Section, send it 2200 South 216th St., Des Moines, WA. For (c)(2) of this AD, certificated in any category, information on the availability of this all manufacturer serial numbers, except those to the attention of the person identified in paragraph (j)(2) of this AD. Information may material at the FAA, call 206–231–3195. on which Airbus modification 207430 has (5) You may view this service information been embodied in production, or Airbus be emailed to: 9-ANM-116- [email protected]. Before using any that is incorporated by reference at the Service Bulletin A330–54–3041 has been National Archives and Records embodied in service. approved AMOC, notify your appropriate principal inspector, or lacking a principal Administration (NARA). For information on (1) Model A330–201, –202, and –203 the availability of this material at NARA, call airplanes. inspector, the manager of the local flight standards district office/certificate holding 202–741–6030, or go to: http:// (2) Model A330–301, –302, and –303 www.archives.gov/federal-register/cfr/ibr- airplanes. district office. (2) Contacting the Manufacturer: For any locations.html. (d) Subject requirement in this AD to obtain corrective Issued in Des Moines, Washington, on Air Transport Association (ATA) of actions from a manufacturer, the action must February 14, 2019. America Code 54, Nacelles/pylons. be accomplished using a method approved Michael Kaszycki, by the Manager, International Section, Acting Director, System Oversight Division, (e) Reason Transport Standards Branch, FAA; or the Aircraft Certification Service. This AD was prompted by reports of European Aviation Safety Agency (EASA); or damaged drain pipes located above the lower Airbus SAS’s EASA Design Organization [FR Doc. 2019–03257 Filed 2–26–19; 8:45 am] aft pylon fairing (LAPF), caused by a contact Approval (DOA). If approved by the DOA, BILLING CODE 4910–13–P

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DEPARTMENT OF THE TREASURY Sections 1.1, 1.2, 1.4, and 1.7 all administrative, and in the nature of address the role of the FOIA Public records regularly produced for 31 CFR Part 1 Liaison in assisting requesters with requesters. Therefore, Treasury has RIN 1505–AC35 resolving disputes related to their FOIA determined that as long as a component requests, as required by the OPEN follows the OMB fee guidelines, it Freedom of Information Act Government Act of 2007. should have the discretion to establish Regulations The 2007 Act also required agencies its own fee structure. to assign tracking numbers to requests Further, the Appendices to the AGENCY: Department of the Treasury. that will take longer than 10 days to current regulation have been revised to ACTION: Final rule. process. This requirement is reflect changes in organizational implemented through § 1.4. SUMMARY: This rule adopts revisions to structure. Appendices pertaining to the The FOIA Improvement Act of 2016 United States Customs Service, United the Department’s regulations under the provides that agencies must allow a Freedom of Information Act (FOIA). The States Secret Service, Bureau of minimum of 90 days for requesters to Alcohol, Tobacco and Firearms, Federal regulations are being revised to update file an administrative appeal. The Act and streamline procedures and Law Enforcement Training Center, and also requires that agencies notify the Office of Thrift Supervision have incorporate certain changes brought requesters of the availability of dispute about by the amendments to the FOIA been deleted as these components are resolution services at various times no longer part of the Department of the under the OPEN Government Act of throughout the FOIA process. This final 2007 and the FOIA Improvement Act of Treasury. The Bureau of the Public Debt rule updates the Department’s and the Financial Management Service 2016. Additionally, the regulations are regulations to reflect those statutory being updated to reflect developments were merged in 2012 to form the Bureau changes (§§ 1.4 and 1.6). of the Fiscal Service (Appendix D in in the case law and to include current A number of changes have been made these revised regulations). Appendices cost figures to be used in calculating to the section on fees (§ 1.7). The for two new components have been and charging fees. This final rule definition of representative of the news follows publication of a proposed rule media has been updated to reflect added: the Alcohol and Tobacco Tax on October 26, 2018; it adopts the amendments to the FOIA under the and Trade Bureau (Appendix H) and the proposal without substantive change, OPEN Government Act of 2007. Further, Treasury Inspector General for Tax although certain sections have been § 1.7 has been updated to reflect Administration (Appendix I). renumbered and reorganized. amendments to the FOIA in 2007 and This final rule contains no substantive DATES: The final rule is effective March 2016 that limit the agency’s ability to changes to the proposed rule that 29, 2019. assess fees when certain timelines or Treasury published for comments on FOR FURTHER INFORMATION CONTACT: conditions are not met. The current October 26, 2018. However, the rule was Ryan Law, Deputy Assistant Secretary regulation also revises § 1.7 to conform renumbered and slightly reorganized so for Privacy, Transparency and Records, to a recent decision of the U.S. Court of that the section numbers would not 202–622–0930, extension 2 (this is not Appeals for the District of Columbia conflict with provisions in Subpart B of a toll-free number). Circuit addressing the ‘‘educational Part 1. Specifically, the rule was SUPPLEMENTARY INFORMATION: institution’’ fee category. See Sack v. renumbered to begin with § 1.0, § 1.6 Dept. of Defense, 823 F.3d687 (D.C. Cir. was redesignated as subsections (f) Discussion of the Final Rule 2016). Specifically, the definition of through (k) of § 1.4, and §§ 1.9 and 1.11 This rule adopts revisions to the ‘‘educational institution’’ is revised to were redesignated as subsections (e) and Department’s regulations under the reflect the holding in Sack that students (f) of § 1.0. FOIA to update and streamline the who make FOIA requests in furtherance Regulatory Flexibility Act language of several procedural of their coursework or other school- provisions and to incorporate certain of sponsored activities may qualify under The Regulatory Flexibility Act (RFA), the changes brought about by the this requester category. Therefore, the 5 U.S.C. 601 et seq., requires agencies to amendments to the FOIA under the requirement that such a requester show prepare an initial regulatory flexibility OPEN Government Act of 2007, Public that the request is made under the analysis (IRFA) to determine the Law 110–175, 121 Stat. 2524 and the auspices of the educational institution is economic impact of the rule on small FOIA Improvement Act of 2016, Public replaced with a requirement that the entities. A small entity is defined as Law 114–185, 130 Stat. 538. requester show that the request is made either a small business, a small Additionally, the regulations are being in connection with the requester’s role organization, or a small governmental updated to reflect developments in case at the educational institution. Section jurisdiction; an individual is not a small law and to include current cost figures 1.7 also revises the Department’s fee entity. Section 605(b) of the RFA allows to be used in calculating and charging schedule. The duplication charge for an agency to prepare a certification in fees. photocopying will decrease to $.15 per lieu of an IRFA if the rule will not have The revisions of the FOIA regulations page, while document search and a significant economic impact on a in 31 CFR subpart A of part 1 review charges have been established at substantial number of small entities. incorporate changes to the language and $21.00, $16.50, and $13.00 per quarter Pursuant to 5 U.S.C. 605(b), it is hereby structure of the regulations. Revised hour for executive, professional, and certified that this regulation will not provisions include § 1.0 (General administrative time, respectively. have a significant economic impact on Provisions), § 1.1 (Proactive disclosure Treasury components will be given a substantial number of small entities. of Department records), § 1.2 flexibility to publish their own fee Under the FOIA, agencies may recover (Requirements for making requests), schedules that deviate from the only the direct costs of searching for, § 1.3 (Responsibility for responding to Department’s fee schedule as reviewing, and duplicating the records requests), § 1.45 (Responses to requests), circumstances may warrant. Treasury processed for requesters. Thus, fees § 1.5 (Confidential commercial components differ in the grades of assessed by the Department are information), § 1.6 (Administrative employees that process FOIA requests, nominal. Further, the ‘‘small entities’’ appeals), and § 1.7 (Fees). whether executive, professional, or that make FOIA requests, as compared

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with individual requesters and other Subpart A—Freedom of Information reporting to such official, including requesters, are relatively few in number. Act immediate staff; (xvi) The Assistant Secretary (Tax Regulatory Planning and Review § 1.0 General provisions. Policy) and all offices reporting to such (a) This subpart contains the rules Executive Orders 13563 and 12866 official, including immediate staff; that the Department of the Treasury direct agencies to assess costs and (xvii) The Assistant Secretary follows in processing requests for benefits of available regulatory (Management) and all offices reporting records under the Freedom of alternatives and, if regulation is to such official, including immediate Information Act (FOIA), 5 U.S.C. 552 as necessary, to select regulatory staff; and amended. These regulations apply to all approaches that maximize net benefits (xix) The Inspector General and all components of the Department of the (including potential economic, offices reporting to such official, Treasury. Requests made by individuals environmental, public health and safety including immediate staff; for records about themselves under the effects, distributive impacts, and (2) The Alcohol and Tobacco Tax and Privacy Act of 1974, 5 U.S.C. 552a, are Trade Bureau; equity). Executive Order 13563 processed under subpart C of part 1 as emphasizes the importance of (3) The Bureau of Engraving and well as under this subpart. Printing; quantifying both costs and benefits, of (b) The components of the (4) The Bureau of the Fiscal Service; reducing costs, of harmonizing rules, Department of the Treasury for the (5) The Financial Crimes Enforcement and of promoting flexibility. This rule is purposes of this subpart are the Network; not a ‘‘significant regulatory action’’ following offices and bureaus: under Executive Order 12866. (1) The Departmental Offices, which (6) The Internal Revenue Service; (7) The Office of the Comptroller of List of Subjects in 31 CFR Part 1 include the offices of: (i) The Secretary of the Treasury, the Currency; Disclosure of records, Freedom of including immediate staff; (8) The United States Mint; Information Act, Other disclosure (ii) The Deputy Secretary of the (9) The Treasury Inspector General for provisions, Privacy Act. Treasury, including immediate staff; Tax Administration; (iii) The Chief of Staff, including (10) The Special Inspector General for For the reasons stated in the immediate staff; the Troubled Asset Relief Program. preamble, the Department of the (iv) The Executive Secretary of the (c) Any Treasury office which is now Treasury amends 31 CFR part 1 as Treasury and all offices reporting to in existence or may hereafter be follows: such official, including immediate staff; established, which is not specifically (v) The Under Secretary (International listed above and is not a subsidiary unit PART 1—DISCLOSURE OF RECORDS Affairs) and all offices reporting to such of a component of those listed above, official, including immediate staff; shall be deemed a part of the ■ 1. The authority citation for part 1 is (vi) The Under Secretary (Domestic Departmental Offices for the purpose of revised to read as follows: Finance) and all offices reporting to these regulations. Authority: 5 U.S.C. 301, 552, 552a, 553; such official, including immediate staff; (d) The head of each component is 31 U.S.C. 301, 321; 31 U.S.C. 3717. (vii) The Director of the Community hereby authorized to substitute the Development Financial Institution Fund ■ official designated and change the 2. Subpart A is revised to read as and all offices reporting to such official, address specified in the appendix to this follows: including immediate staff; subpart applicable to that component. Subpart A—Freedom of Information Act (viii) The Director of the Office of Components may issue supplementary Financial Research and all offices regulations applicable only to the Sec. reporting to such official, including 1.0 General provisions. component in question, which (except immediate staff; with respect to fee schedules) shall be 1.1 Proactive disclosures of Department (ix) The Under Secretary (Terrorism records. consistent with these regulations. and Financial Intelligence) and all 1.2 Requirements for making requests. Persons interested in the records of a offices reporting to such official, 1.3 Responsibility for responding to particular component should, therefore, requests. including immediate staff; (x) The Director of the Office of also consult the Code of Federal 1.4 Responses to requests. Regulations for any rules or regulations 1.5 Confidential commercial information. Foreign Assets Control and all offices reporting to such official, including promulgated specifically with respect to 1.6 Administrative appeals. that component (see Appendices to this 1.7 Fees. immediate staff; Appendix A to Subpart A of Part 1— (xi) The General Counsel and all subpart for cross references). In the Departmental Offices offices reporting to such official, event of any actual or apparent Appendix B to Subpart A of Part 1—Internal including immediate staff, but not inconsistency, these Departmental Revenue Service including legal counsel to the regulations shall govern. Appendix C to Subpart A of Part 1—Bureau components listed in paragraphs (b)(2) (e) Each component shall preserve all of Engraving and Printing through (10) of this section; correspondence pertaining to the Appendix D to Subpart A of Part 1—Bureau (xii) The Treasurer of the United requests that it receives under this of the Fiscal Service States, including immediate staff; subpart, as well as copies of all Appendix E to Subpart A of Part 1—United (xiii) The Assistant Secretary requested records, until disposition or States Mint (Legislative Affairs) and all offices destruction is authorized pursuant to Appendix F to Subpart A of Part 1—Office title 44 of the United States Code or the of the Comptroller of the Currency reporting to such official, including Appendix G to Subpart A of Part 1— immediate staff; General Records Schedule 4.2 of the Financial Crimes Enforcement Network (xiv) The Assistant Secretary (Public National Archives and Records Appendix H to Subpart A of Part 1—Alcohol Affairs) and all offices reporting to such Administration. Records that are and Tobacco Tax and Trade Bureau official, including immediate staff; identified as responsive to a request will Appendix I to Subpart A of Part 1—Treasury (xv) The Assistant Secretary not be disposed of or destroyed while Inspector General for Tax Administration (Economic Policy) and all offices they are the subject of a pending

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request, administrative appeal, or verification of identity provision set requester of that date. A record that is lawsuit under the FOIA. forth in section 1.26 of subpart C of this excluded from the requirements of the (f) Nothing in this subpart shall be part. FOIA pursuant to 5 U.S.C. 552(c), shall construed to entitle any person, as of (4) Where a request for records not be considered responsive to a right, to any service or to the disclosure pertains to a third party, a requester may request. of any record to which such person is receive greater access by submitting (b) Authority to grant or deny not entitled under the FOIA. either a notarized authorization signed requests. The head of a component, or by that individual or a declaration by designee, is authorized to grant or to § 1.1 Proactive disclosure of Department that individual made in compliance deny any requests for records that are records. with the requirements set forth in 28 maintained by that component. (a) Records that are required by the U.S.C. 1746, authorizing disclosure of (c) Re-routing of misdirected requests. FOIA to be made available for public the records to the requester, or When a component’s FOIA office inspection in an electronic format may submitting proof that the individual is determines that a request was be accessed through the Department’s deceased (e.g., a copy of a death misdirected within the agency, the website, http://www.treasury.gov, and/ certificate). As an exercise of its receiving component’s FOIA office must or on the website of the component that administrative discretion, each route the request to the FOIA office of maintains such records. The FOIA office component can require a requester to the proper component(s) within the of each component is responsible for supply additional information, if agency. determining which of the component’s necessary, in order to verify that a (d) Consultation, referral, and records are required to be made publicly particular individual has consented to coordination. When reviewing records available, as well as identifying disclosure. located by a component in response to additional records of interest to the (b) Description of records sought. a request, the component will determine public that are appropriate for public Requesters must describe the records whether another agency of the Federal disclosure, and for posting such records. sought in sufficient detail to enable Government is better able to determine Each component has a FOIA Public Department personnel to locate them whether the record is exempt from Liaison who can assist individuals in with a reasonable amount of effort. To disclosure under the FOIA. As to any locating records particular to that the extent possible, requesters should such record, the agency must proceed in component. A list of the Department’s include specific information that may one of the following ways: FOIA Public Liaisons is available at: assist a component in identifying the (1) Consultation. When records https://home.treasury.gov/footer/ requested records, such as the date, title originated with the component freedom-of-information-act. or name, author, recipient, subject processing the request, but contain (b) When a component receives three matter of the record, case number, file within them information of interest to or more requests for the same records, designation, or reference number. another agency or other Federal it shall make available for public Requesters should refer to the Government office, the agency inspection in an electronic format, any Appendices of this subpart for processing the request should typically records released in response to those additional component-specific consult with that other entity prior to requests. requirements. In general, requesters making a release determination. should include as much detail as (2) Referral. (i) When the component § 1.2 Requirements for making requests. possible about the specific records or processing the request believes that a (a) General information. (1) Requests the types of records that they are different agency is best able to should be addressed to the FOIA office seeking. If the requester fails to determine whether to disclose the of the component that maintains the reasonably describe the records sought, record, the component typically should requested records. The appendices to the component shall inform the refer the responsibility for responding to this subpart list the addresses of each requester what additional information is the request regarding that record to that FOIA office and the methods for needed or why the request is deficient. agency. Ordinarily, the agency that submitting requests to each component. Requesters who are attempting to originated the record is presumed to be Requesters are encouraged to submit reformulate or modify such a request the best agency to make the disclosure requests online (through FOIA.gov, may discuss their request with the determination. However, if the component web pages or by completing component’s designated FOIA contact component processing the request is in the ‘‘Submit an Online Request’’ form or the FOIA Public Liaison. When a the best position to respond regarding located at https://home.treasury.gov/ requester fails to provide sufficient the record, then the record may be footer/freedom-of-information-act. detail after having been asked to clarify handled as a consultation. (2) When a requester is unable to a request, the component shall notify (ii) Whenever a component refers any determine the appropriate Departmental the requester that the request has not part of the responsibility for responding component to which to direct a request, been properly made and that the request to a request to another agency, it must the requester may send the request to will be administratively closed. document the referral, maintain a copy Freedom of Information Act Request, of the record that it refers, and notify the Department of the Treasury, § 1.3 Responsibility for responding to requester of the referral, informing the Departmental Offices (DO), Director, requests. requester of the name(s) of the agency to FOIA and Transparency, 1500 (a) In general. The component that which the record was referred, Pennsylvania Avenue NW, Washington, first receives a request for a record and including that agency’s FOIA contact DC 20220. The FOIA and Transparency maintains that record is the component information. team will forward the request to the responsible for responding to the (3) Coordination. The standard component(s) that it determines to be request. In determining which records referral procedure is not appropriate most likely to maintain the records that are responsive to a request, a component where disclosure of the identity of the are sought. ordinarily will include only records in agency to which the referral would be (3) A requester who is making a its possession as of the date that it made could harm an interest protected request for records about himself or begins its search. If any other date is by an applicable exemption, such as the herself must comply with the used, the component shall inform the exemptions that protect personal

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privacy or national security interests. classified by another component or Office of Government Information For example, if a non-law enforcement agency of the Federal government, the Services to provide dispute resolution agency responding to a request for component shall refer the responsibility services. records on a living third party locates for responding to that portion of the (d) Aggregating requests. For the within its files records originating with request to the component or agency that purposes of identifying unusual a law enforcement agency, and if the classified the underlying information. circumstances under the FOIA, existence of that law enforcement components may aggregate requests in § 1.4 Responses to requests. interest in the third party was not cases where it reasonably appears that publicly known, then to disclose that (a) In general. Components ordinarily multiple requests, submitted either by a law enforcement interest could cause an will respond to requests according to requester or by a group of requesters unwarranted invasion of the personal their order of receipt. The Appendices acting in concert, constitute a single privacy of the third party. Similarly, if to this subpart contain the list of the request that would otherwise involve an agency locates within its files Departmental components that are unusual circumstances. Components material originating with an Intelligence designated to accept requests. In will not aggregate multiple requests that Community agency, and the instances involving misdirected involve unrelated matters. requests, i.e., where a request is sent to involvement of that agency in the matter (e) Expedited processing. (1) Requests one of the components designated in the is classified and not publicly and appeals will be processed on an Appendices but is actually seeking acknowledged, then to disclose or give expedited basis only upon request and records maintained by another attribution to the involvement of that when it is determined that they involve: component, the response time will Intelligence Community agency could (i) Circumstances in which the lack of cause national security harms. In such commence on the date that the request is received by the appropriate expedited processing could reasonably instances, in order to avoid harm to an be expected to pose an imminent threat interest protected by an applicable component, but in any event not later than ten working days after the request to the life or physical safety of an exemption, the agency that received the individual; request should coordinate with the is first received. (b) Multitrack processing. All (ii) An urgency to inform the public originating agency to seek its views on about an actual or alleged Federal the disclosability of the record. The components must designate a specific track for requests that are granted government activity, if made by a release determination for the record that person who is primarily engaged in is the subject of the coordination should expedited processing, in accordance with the standards set forth in disseminating information. The then be conveyed to the requester by the standard of ‘‘urgency to inform’’ agency that originally received the paragraph (e) of this section. A component may also designate requires that the records requested request. pertain to a matter of current exigency (4) Timing of responses to additional processing tracks that to the public and that delaying a consultations and referrals. All distinguish between simple and more response to a request for records would consultations and referrals will be complex requests based on the compromise a significant recognized handled according to the date that the estimated amount of work or time interest to and throughout the general FOIA request was initially received by needed to process the request. A the component or other agency of the component can consider factors such as public; or Federal government. the number of pages involved in (iii) The loss of substantial due (5) Agreements regarding processing the request or the need for process rights. consultations and referrals. Components consultations or referrals. Components (2) A request for expedited processing may establish agreements with other shall advise requesters of the track into may be made at any time. Requests must Treasury components or agencies of the which their request falls and, when be submitted to the component that Federal government to eliminate the appropriate, shall offer the requesters an maintains the records requested. The need for consultations or referrals with opportunity to narrow their request so time period for making the respect to particular types of records. that it can be placed in a different determination on the request for (e) Classified information. On receipt processing track. expedited processing under this section of any request involving classified (c) Unusual circumstances. Whenever shall commence on the date that the information, the component shall take the statutory time limits for processing component receives the request. appropriate action to ensure compliance a request cannot be met because of (3) A requester who seeks expedited with part 2 of this title and with all ‘‘unusual circumstances,’’ as defined in processing must submit a statement, other laws and regulations relating to the FOIA, and the component extends certified to be true and correct, proper handling of classified the time limits on that basis, the explaining in detail the basis for making information. Whenever a request component shall, before expiration of the request for expedited processing. As involves a record containing the twenty-day period to respond, notify a matter of administrative discretion, a information that has been classified or the requester in writing of the unusual component may waive the formal may be appropriate for classification by circumstances involved and of the date certification requirement. another component or agency under any by which processing of the request can (4) A requester seeking expedited applicable executive order concerning be expected to be completed. Where the processing under paragraph (e)(1)(ii) of the classification of records, the extension exceeds ten working days, the this section, who is not a full-time receiving component shall refer the component shall, as described by the member of the news media must responsibility for responding to the FOIA, provide the requester with an establish that he or she is a person request regarding that information to the opportunity to modify the request or whose primary professional activity or component or agency that classified the agree to an alternative time period for occupation is information information, or that should consider the processing. The component shall make dissemination. Such a requester also information for classification. Whenever available its designated FOIA contact or must establish a particular urgency to a component’s record contains its FOIA Public Liaison for this purpose. inform the public about the government information that has been derivatively The component must also alert activity involved in the request—one classified, i.e., it contains information requesters to the availability of the that extends beyond the public’s right to

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know about government activity exemption applied by the component in submission unless the submitter generally. denying the request; and requests and provides justification for a (5) A component shall notify the (3) An estimate of the volume of any longer designation period. requester within ten calendar days of records or information withheld, for (b) When notice to submitters is the receipt of a request for expedited example, by providing the number of required. (1) A component shall processing of its decision whether to pages or some other reasonable form of promptly provide written notice to a grant or deny expedited processing. If estimation. This estimation is not submitter whenever: expedited processing is granted, the required if the volume is otherwise (i) The requested confidential request shall be given priority, placed in indicated by deletions marked on commercial information has been the processing track for expedited records that are disclosed in part, or if designated in good faith by the requests, and shall be processed as soon the estimate would cause a harm submitter as information considered as practicable. If a component denies protected by one of the exemptions. protected from disclosure under expedited processing, any appeal of that (4) A statement that the denial may be Exemption 4; or decision that complies with the appealed under § 1.6(a) of this subpart, (ii) The component has a reason to procedures set forth in § 1.6 of this and a description of the requirements believe that the requested confidential subpart shall be acted on expeditiously. set forth therein. commercial information may be (f) Acknowledgments of requests. (5) A statement notifying the requester protected from disclosure under Upon receipt of a request that will take of the assistance available from the Exemption 4 of the FOIA. longer than ten business days to component’s FOIA Public Liaison and (2) The notice shall either describe the process, a component shall send the the dispute resolution services offered confidential commercial information requester an acknowledgment letter that by the Office of Government requested or include a copy of the assigns the request an individualized Information Services. requested records or portions of records tracking number. The component shall (j) Markings on released documents. containing the information. In cases also include in the acknowledgment a Records disclosed in part must be involving a voluminous number of brief description of the records sought to marked clearly to show the amount of submitters, notice may be made by allow requesters to more easily keep information deleted and the exemption posting or publishing the notice in a track of their requests. under which the deletion was made place or manner reasonably likely to (g) Grants of requests. Once a unless doing so would harm an interest accomplish it. (c) Exceptions to submitter notice component makes a determination to protected by an applicable exemption. requirements. The notice requirements grant a request in full or in part, it shall The location of the information deleted shall also be indicated on the record, if of this section shall not apply if: notify the requester in writing. The (1) The component determines that component also shall inform the technically feasible. (k) Use of record exclusions. (1) In the the confidential commercial information requester of any fees charged under § 1.7 is exempt from disclosure under the of this subpart and shall disclose the event a component identifies records that may be subject to exclusion from FOIA; requested records to the requester (2) The confidential commercial promptly upon payment of any the requirements of the FOIA pursuant to 5 U.S.C. 552(c), the component shall information lawfully has been applicable fees. The component must published or has been officially made also inform the requester of the consult with the Department of Justice, Office of Information Policy (OIP), available to the public; or availability of the FOIA Public Liaison (3) Disclosure of the confidential to offer assistance. before applying the exclusion. (2) A component invoking an commercial information is required by a (h) Adverse determinations of exclusion must maintain an statute other than the FOIA or by a requests. A component making an administrative record of the process of regulation issued in accordance with the adverse determination denying a request invocation and of the consultation with requirements of Executive Order 12600 in any respect shall notify the requester OIP. of June 23, 1987; of that determination in writing. (d) Opportunity to object to Adverse determinations, or denials of § 1.5 Confidential commercial information. disclosure. (1) A component will specify requests, include decisions that: The (a) Definitions—(1) Confidential a reasonable time period as determined requested record is exempt, in whole or commercial information means trade within its administrative discretion in part; the request does not reasonably secrets and commercial or financial within which the submitter must describe the records sought; the information obtained by the Department respond to the notice referenced above. information requested is not a record from a submitter that may be protected If a submitter has any objections to subject to the FOIA; the requested from disclosure under Exemption 4 of disclosure, it should provide the record does not exist, cannot be located, the FOIA. component a detailed written statement or has been destroyed; or the requested (2) Submitter means any person or that specifies all grounds for record is not readily reproducible in the entity from whom the Department withholding the particular confidential form or format sought by the requester. obtains confidential commercial commercial information under any Adverse determinations also include information, directly or indirectly. exemption of the FOIA. In order to rely denials involving fees or fee waiver (3) Designation of confidential on Exemption 4 as a basis for matters, and denials of requests for commercial information. A submitter of nondisclosure, the submitter must expedited processing. confidential commercial information explain why the information constitutes (i) Content of denial letter. The denial must use good faith efforts to designate a trade secret, or commercial or letter shall be signed by the head of the by appropriate markings, either at the financial information that is privileged component, or FOIA designee, and shall time of submission or within a or confidential. include, when applicable: reasonable time thereafter, any portion (2) A submitter who fails to respond (1) The name and title or position of of its submission that it considers to be within the time period specified in the the person responsible for the denial; protected from disclosure under notice shall be considered to have no (2) A brief statement of the reasons for Exemption 4. These designations will objection to disclosure of the the denial, including any FOIA expire ten years after the date of the information. An objection to disclosure

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received by the component after the component’s determination that is being information. A component ordinarily time period specified in the notice will appealed and the assigned request will collect all applicable fees before not be considered by the component. number. The requester should mark sending copies of records to a requester. Any information provided by a both the appeal letter and envelope, or Requesters must pay fees by check or submitter under this subpart may itself subject line of the electronic money order made payable to the be subject to disclosure under the FOIA transmission, ‘‘Freedom of Information Treasury of the United States, or by and/or protected from disclosure by Act Appeal.’’ other means specified at https:// applicable exemptions or by a statute (b) Adjudication of appeals. (1) The home.treasury.gov/footer/freedom-of- other than the FOIA. FOIA appeal official or designee information-act. (e) Analysis of objections. A specified in the appropriate Appendix (b) Definitions. For purposes of this component shall consider a submitter’s will act on all appeals under this section: objections and specific grounds for section. (1) Commercial-use request is a nondisclosure in deciding whether to (2) An appeal ordinarily will not be request for information for a use or a disclose the requested confidential adjudicated if the request becomes a purpose that furthers a commercial, commercial information. matter of FOIA litigation. trade, or profit interest, which can (f) Notice of intent to disclose. (3) On receipt of any appeal involving include furthering those interests Whenever a component decides to classified information, the FOIA appeal through litigation. disclose confidential commercial official or designee must take (2) Direct costs are those expenses that information over the objection of a appropriate action to ensure compliance a component expends in searching for submitter, the component shall provide with applicable classification rules. and duplicating (and, in the case of the submitter written notice, which (c) Decision on appeals. A decision on commercial-use requests, reviewing) shall include: an appeal must be made in writing by records in order to respond to a FOIA (1) A statement of the reasons why the component within 20 business days request. For example, direct costs each of the submitter’s disclosure after receipt of the appeal. A decision include the salary of the employee objections was not sustained; that upholds a component’s performing the work (i.e., the basic rate (2) Copies of the records that the determination must contain a statement of pay for the employee, plus 16 percent component intends to disclose or, in the that identifies the reasons for the of that rate to cover benefits) and the alternative, a description of the affirmance, including any FOIA cost of operating computers and other confidential commercial information to exemptions applied. The decision must electronic equipment, such as be disclosed; and provide the requester with notification photocopiers and scanners. Direct costs (3) A specified disclosure date, which of the statutory right to file a lawsuit do not include overhead expenses such shall be a reasonable time subsequent to and will inform the requester of the as the costs of space, and of heating or the notice. mediation services offered by the Office lighting a facility. Components shall (g) Notice of FOIA lawsuit. Whenever of Government Information Services of ensure that searches, review, and a requester files a lawsuit seeking to the National Archives and Records duplication are conducted in the most compel the disclosure of confidential Administration as a non-exclusive efficient and the least expensive commercial information, the component alternative to litigation. If a component’s manner. shall promptly notify the submitter. decision is remanded or modified on (3) Duplication is reproducing a copy (h) Requester notification. The appeal the requester will be notified of of a record or of the information component shall notify a requester that determination in writing. The contained in it, necessary to respond to whenever it provides the submitter with component will then further process the a FOIA request. Copies can take the notice and an opportunity to object to request in accordance with that appeal form of paper, audiovisual materials, or disclosure; whenever it notifies the determination and respond directly to electronic records, among others. submitter of its intent to disclose the the requester. Appeals that have not (4) Educational institution is any requested confidential commercial been postmarked or transmitted within school that operates a program of information; and whenever a submitter the specified time frame will be scholarly research. A requester in this files a lawsuit to prevent the disclosure considered untimely and will be category must show that the request is of the confidential commercial administratively closed with written made in connection with the requester’s information. notice to the requester. role at the educational institution. (d) Engaging in dispute resolution Components may seek assurance from § 1.6 Administrative appeals. services provided by Office of the requester that the request is in (a) Requirements for making an Government Information Services furtherance of scholarly research and appeal. Before seeking review by a court (OGIS). Mediation is a voluntary will advise requesters of their placement of a component’s adverse determination, process. If a component agrees to in this category. a requester generally must first submit participate in the mediation services (5) Noncommercial scientific a timely administrative appeal. A provided by OGIS, it will actively institution is an institution that is not requester may appeal any adverse engage as a partner to the process in an operated on a ‘‘commercial’’ basis, as determinations denying his or her attempt to resolve the dispute. defined in paragraph (b)(1) of this request to the official specified in the section, and that is operated solely for appropriate Appendix to this subpart. § 1.7 Fees. the purpose of conducting scientific Examples of adverse determinations are (a) In general. Components may research, the results of which are not provided in § 1.4(h) of this subpart. The charge for processing requests under the intended to promote any particular requester must make the appeal in FOIA in accordance with the provisions product or industry. A requester in this writing and to be considered timely it of this section or may issue their own category must show that the request is must be postmarked, or in the case of fee schedules as long as they are authorized by and is made under the electronic submissions, transmitted, consistent with the OMB Guidelines. In auspices of a qualifying institution and within 90 calendar days after the date of order to resolve any fee issues that arise that the records are sought to further the component’s final response. The under this section, a component may scientific research and not for a appeal letter should clearly identify the contact a requester for additional commercial use.

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(6) Representative of the news media provided below already account for the consider the use of other exemptions is any person or entity that actively direct costs associated with a given fee may be assessed as review fees. Review gathers information of potential interest type, components should not add any costs are properly charged even if a to a segment of the public, uses its additional costs to those charges. record ultimately is not disclosed. editorial skills to turn the raw materials (1) Search. (i) Search fees shall be Review fees will be charged at the same into a distinct work, and distributes that charged for all requests, subject to the rates as those charged for a search under work to an audience. The term ‘‘news’’ restrictions of paragraph (d) of this paragraph (c)(1)(ii) of this section. means information that is about current section. Components will charge search (d) Restrictions on charging fees. (1) events or that would be of current fees for all other requesters, subject to No search fees will be charged for interest to the public. Examples of news the restrictions of paragraph (d) of this requests by educational institutions, media entities include television or section. Components may properly noncommercial scientific institutions, radio stations broadcasting news to the charge for time spent searching even if or representatives of the news media public at large and publishers of they do not locate any responsive (unless the records are sought for periodicals that disseminate ‘‘news’’ records or if they determine that the commercial use). and make their products available records are entirely exempt from (2) If a component fails to comply through a variety of means to the disclosure. with the FOIA’s time limits in which to general public. A request for records (ii) For each quarter hour spent by respond to a request, it may not charge that supports the news-dissemination personnel searching for requested search fees, or, in the instances of function of the requester shall not be records, including electronic searches requests from requesters described in considered to be for a commercial use. that do not require new programming, paragraph (d)(1) of this section, may not ‘‘Freelance’’ journalists who the fees shall be as follows: executive— demonstrate a solid basis for expecting $21; professional—$16.50; and charge duplication fees, except as publication through a news media entity administrative—$13.00. described in paragraphs (d)(2)(i) through shall be considered as a representative (iii) In addition, requesters will be (iii) of this section. of the news media. A publishing charged the direct costs associated with (i) If a component has determined that contract would provide the clearest the creation of any new computer unusual circumstances as defined by the evidence that publication is expected; program required to locate the requested FOIA apply and the agency provided however, components shall also records. timely written notice to the requester in consider a requester’s past publication (2) Duplication. Duplication fees will accordance with the FOIA, a failure to record in making this determination. be charged to all requesters, subject to comply with the time limit shall be (7) Other requester refers to a the restrictions of paragraph (d) of this excused for an additional ten days. requester who does not fall within any section. A component shall honor a (ii) If a component has determined of the previously described categories. requester’s preference for receiving a that unusual circumstances as defined (8) Review is the examination of a record in a particular form or format by the FOIA apply, and more than 5,000 record located in response to a request where it is readily reproducible by the pages are necessary to respond to the in order to determine whether any component in the form or format request, the component may charge portion of it is exempt from disclosure. requested. Where photocopies are search fees, or, in the case of requesters Review time includes time spent supplied, the component will provide described in paragraph (d)(1) of this processing any record for disclosure, one copy per request at a cost of $0.15 section, may charge duplication fees if such as doing all that is necessary to per page. For copies of records the following steps are taken. The prepare the record for disclosure, produced on tapes, disks, other forms of component must have provided timely including the process of redacting the duplication, or other electronic media, written notice of unusual circumstances record and marking the appropriate components will charge the direct costs to the requester in accordance with the exemptions. Review time also includes of producing the copy, including FOIA and the component must have time spent obtaining and considering operator time. Where paper documents discussed with the requester via written any formal objection to disclosure made must be scanned in order to comply mail, email, or telephone (or made not by a confidential commercial with a requester’s preference to receive less than three good-faith attempts to do information submitter under § 1.5 of this the records in an electronic format, the so) how the requester could effectively subpart, but it does not include time requester shall pay the direct costs limit the scope of the request in spent resolving general legal or policy associated with scanning those accordance with 5 U.S.C. issues regarding the application of materials, including operator’s time. For 552(a)(6)(B)(ii). If this exception is exemptions. Review costs are properly other forms of duplication, components satisfied, the component may charge all charged even if a record ultimately is will charge the direct costs. applicable fees incurred in the (3) Review. Review fees will only be not disclosed. processing of the request. (9) Search is the process of looking for charged to requesters who make and retrieving records or information commercial-use requests. Review fees (iii) If a court has determined that responsive to a request. Search time will be assessed in connection with the exceptional circumstances exist as includes time devoted to page-by-page initial review of the record, i.e., the defined in the FOIA, a failure to comply or line-by-line identification of review conducted by a component to with the time limits shall be excused for information within records; and the determine whether an exemption the length of time provided by the court reasonable efforts expended to locate applies to a particular record or portion order. and retrieve information from electronic of a record. No charge will be made for (3) No search or review fees will be records. review at the administrative appeal charged for a quarter-hour period unless (c) Charging fees. Unless a component stage of exemptions applied at the more than half of that period is required has issued a separate fee schedule, or a initial review stage. However, when the for search or review. waiver or reduction of fees has been appellate authority determines that a (4) Except for requesters seeking granted under paragraph (k) of this particular exemption no longer applies, records for a commercial use, section, components shall charge the any costs associated with a component’s components will provide without following fees. Because the fee amounts re-review of the records in order to charge:

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(i) The first 100 pages of duplication discretion, the direct costs of providing request and the component may require (or the cost equivalent for other media); the service will be charged. Examples of that the requester make an advance and such services include certifying that payment of the full amount of any (ii) The first two hours of search. records are true copies, providing anticipated fee before the component (5) When, after first deducting the 100 multiple copies of the same document, begins to process a new request or free pages (or its cost equivalent) and or sending records by means other than continues to process a pending request, the first two hours of search, a total fee first class mail. or any pending appeal. Where a calculated under paragraph (c) of this (g) Charging interest. Components component has a reasonable basis to section is $25.00 or less for any request, may charge interest on any unpaid bill believe that a requester has no fee will be charged. starting on the 31st day following the misrepresented his or her identity in (e) Notice of anticipated fees in excess date of billing the requester. Interest order to avoid paying outstanding fees, of $25.00. When a component charges will be assessed at the rate it may require that the requester provide determines or estimates that the fees to provided in 31 U.S.C. 3717 and will proof of identity. be assessed in accordance with this accrue from the billing date until (4) In cases in which a component section will exceed $25.00, the payment is received by the component. requires advance payment, the request component shall notify the requester of Components will follow the provisions shall not be considered received and the actual or estimated amount of the of the Debt Collection Act of 1982 (Pub. further work will not be completed until fees, including a breakdown of the fees L. 97–365, 96 Stat. 1749), as amended, the required payment is received. If the for search, review or duplication, unless and its administrative procedures, requester does not pay the advance the requester has indicated a including the use of consumer reporting payment within 30 calendar days after willingness to pay fees as high as those agencies, collection agencies, and offset. the date of the component’s fee anticipated. If only a portion of the fee (h) Aggregating requests. When a determination letter, the request will be can be estimated readily, the component component reasonably believes that a closed. shall advise the requester accordingly. requester or a group of requesters acting (j) Other statutes specifically In cases in which a requester has been in concert is attempting to divide a providing for fees. The fee schedule of notified that the actual or estimated fees single request into a series of requests this section does not apply to fees are in excess of $25.00, the request shall for the purpose of avoiding fees, the charged under any statute that not be considered received and further component may aggregate those requests specifically requires an agency to set work will not be completed until the and charge accordingly. Components and collect fees for particular types of requester commits in writing to pay the may presume that multiple requests of records. In instances where records actual or estimated total fee. Such a this type made within a 30-day period responsive to a request are subject to a commitment must be made by the have been made in order to avoid fees. statutorily-based fee schedule program, requester in writing, must indicate a For requests separated by a longer the component will inform the requester given dollar amount the requester is period, components will aggregate them of the contact information for that willing to pay, and must be received by only where there is a reasonable basis source. the component within 30 calendar days for determining that aggregation is (k) Requirements for waiver or from the date of notification of the fee warranted in view of all the reduction of fees. (1) Requesters may estimate. If a commitment is not circumstances involved. Multiple seek a waiver of fees by submitting a received within this period, the requests involving unrelated matters written application demonstrating how requester shall be notified, in writing, will not be aggregated. disclosure of the requested information that the request shall be closed. (i) Advance payments. (1) For is in the public interest because it is Components will inform the requester of requests other than those described in likely to contribute significantly to their right to seek assistance from the paragraphs (i)(2) and (i)(3) of this public understanding of the operations appropriate component FOIA Public section, a component shall not require or activities of the government and is Liaison or other FOIA professional to the requester to make an advance not primarily in the commercial interest assist the requester in reformulating payment before work is commenced or of the requester. request in an effort to reduce fees. continued on a request. Payment owed (2) A component must furnish records Components are not required to accept for work already completed (i.e., responsive to a request without charge payments in installments. If the payment before copies are sent to a or at a reduced rate when it determines, requester has indicated a willingness to requester) is not an advance payment. based on all available information, that pay some designated amount of fees, but (2) When a component determines or disclosure of the requested information the component estimates that the total estimates that a total fee to be charged is in the public interest because it is fee will exceed that amount, the under this section will exceed $250.00, likely to contribute significantly to component will toll the processing of it may require that the requester make public understanding of the operations the request when it notifies the an advance payment up to the amount or activities of the government and is requester of the estimated fees in excess of the entire anticipated fee before not primarily in the commercial interest of the amount the requester has beginning to process the request. A of the requester. In deciding whether indicated a willingness to pay. The component may elect to process the this standard is satisfied the component Component will inquire whether the request prior to collecting fees when it must consider the factors described in requester wishes to revise the amount of receives a satisfactory assurance of full paragraphs (k)(2)(i) through (iii) of this fees the requester is willing to pay or payment from a requester with a history section: modify the request. Once the requester of prompt payment. (i) Disclosure of the requested responds, the time to respond will (3) Where a requester has previously information would shed light on the resume from where it was at the date of failed to pay a properly charged FOIA operations or activities of the the notification. fee to any component or agency within government. The subject of the request (f) Charges for other services. 30 calendar days of the billing date, a must concern identifiable operations or Although not required to provide component may require that the activities of the Federal Government special services, if a component chooses requester pay the full amount due, plus with a connection that is direct and to do so as a matter of administrative any applicable interest on that prior clear, not remote or attenuated.

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(ii) Disclosure of the requested interest is not the primary interest Offices will be made by the Director for FOIA information would be likely to furthered by the request. Components and Transparency, or the designee of such contribute significantly to public ordinarily will presume that when a official, with the exception of initial understanding of those operations or news media requester has satisfied the determinations by the Office of the Inspector activities. This factor is satisfied when requirements of paragraphs (k)(2)(i) and General and the Special Inspector General for the Troubled Asset Relief Program, which the following criteria are met: (ii) of this section, the request is not will be made by the designee of the (A) Disclosure of the requested primarily in the commercial interest of respective Inspector General. records must be meaningfully the requester. Disclosure to data brokers (b) Requests for records should be sent to: informative about government or others who merely compile and Freedom of Information Request, operations or activities. The disclosure market government information for Departmental Offices, Director, FOIA and of information that is already in the direct economic return will not be Transparency, Department of the Treasury, public domain, in either the same or a presumed to primarily serve the public 1500 Pennsylvania Avenue NW, Washington, substantially identical form, would not interest. DC 20220. Requests may also be submitted be meaningfully informative if nothing (3) Where only some of the records to via email at [email protected]. new would be added to the public’s be released satisfy the requirements for 4. Administrative appeal of initial understanding. a waiver of fees, a waiver shall be determination to deny records. (B) The disclosure must contribute to granted for those records. (a) Appellate determinations with respect the understanding of a reasonably broad (4) Requests for a waiver or reduction to records of the Departmental Offices or audience of persons interested in the of fees should be made when the request requests for expedited processing will be made by the Deputy Assistant Secretary for subject, as opposed to the individual is first submitted to the component and Privacy, Transparency, and Records, or the understanding of the requester. A should address the criteria referenced designee of such official, with the exception requester’s expertise in the subject area above. A requester may submit a fee of appellate determinations by the Office of as well as the requester’s ability and waiver request at a later time so long as the Inspector General and the Special intention to effectively convey the underlying record request is Inspector General for the Troubled Asset information to the public must be pending or on administrative appeal. Relief Program, which will be made by the considered. Components will presume When a requester who has committed to respective Inspector General or his or her that a representative of the news media pay fees subsequently asks for a waiver designee. will satisfy this consideration. of those fees and that waiver is denied, (b) Appeals should be addressed to: (iii) The disclosure must not be the requester shall be required to pay Freedom of Information Appeal, primarily in the commercial interest of any costs incurred up to the date the fee Departmental Offices, FOIA and Transparency, Department of the Treasury, the requester. To determine whether waiver request was received. 1500 Pennsylvania Avenue NW, Washington, (5) The requester shall be notified in disclosure of the requested information DC 20220. Appeals may also be submitted via is primarily in the commercial interest writing of the decision to grant or deny email at [email protected]. of the requester, components will the fee waiver. consider the following criteria: Appendix B to Subpart A of Part 1— (A) Components must identify Appendix A to Subpart A of Part 1— Internal Revenue Service Departmental Offices whether the requester has any 1. In general. This appendix applies to the commercial interest that would be 1. In general. This appendix applies to the Internal Revenue Service (IRS). See also 26 furthered by the requested disclosure. A Departmental Offices as defined in 31 CFR CFR 601.702. 1.1(b)(1). commercial interest includes any 2. Public reading room. The IRS no longer 2. Public Reading Room. The public commercial, trade, or profit interest. maintains physical reading rooms. reading room for the Departmental Offices is Requesters must be given an the Treasury Library. The library is located Documents for the public are found on opportunity to provide explanatory in the Freedman’s Bank Building (Treasury various websites at irs.gov including the information regarding this Annex), Room 1020, 1500 Pennsylvania electronic FOIA Reading Room located at consideration. Avenue NW, Washington, DC 20220. For https://www.irs.gov/uac/electronic-reading- (B) If there is an identified building security purposes, visitors are room. commercial interest, the component required to make an appointment by calling 3. Requests for records. Initial must determine whether that is the 202–622–0990. Treasury also maintains an determinations as to whether to grant requests for records of the IRS, grant primary interest furthered by the electronic reading room, which may be accessed at https://home.treasury.gov/footer/ expedited processing, grant a fee waiver, or request. A waiver or reduction of fees is freedom-of-information-act. determine requester category will be made by justified when the requirements of 3. Requests for records. those officials specified in 26 CFR 601.702. paragraphs (k)(2)(i) and (ii) of this (a) Initial determinations as to whether to Requests for records should be submitted section are satisfied and any commercial grant requests for records of the Departmental to the IRS using the information below:

IRS accepts FOIA requests by fax or by mail

If your request is for IRS Headquarters Office records concerning mat- ters of nationwide applicability, such as published guidance (regula- tions and revenue rulings), program management, operations, or policies, including National or Headquarters Offices of Chief Counsel records that are not available at the Electronic FOIA Reading Room site:. If your request is for your own records or other records controlled at IRS field locations including Division Counsel offices that are not available at the Electronic FOIA Reading Room site:. Fax: 877–807–9215, Mail: IRS FOIA Request, Stop 211, PO Box Fax: 877–891–6035, Mail: IRS FOIA Request, Stop 93A, Post Office 621506, Atlanta, GA 30362–3006. Box 621506, Atlanta GA 30362–3006.

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4. Administrative appeal of initial 4. Administrative appeal of initial Appeals may be delivered personally to the determination to deny records. Appellate determination to deny records. Appellate Communications Division, Comptroller of the determinations with respect to records of the determinations will be made by the Currency, 250 E Street SW, Washington, DC. Internal Revenue Service will be made by the Commissioner, Bureau of the Fiscal Service, Commissioner of Internal Revenue or the or that official’s delegate. Appeals may be Appendix G to Subpart A of Part 1— delegate of such officer. Appeals must be in mailed to: Freedom of Information Appeal Financial Crimes Enforcement Network writing and addressed to: IRS Appeals (FOIA), Commissioner, Bureau of the Fiscal 1. In general. This appendix applies to the Attention: FOIA Appeals, M/Stop 55202, Service, 401 14th Street SW, Washington, DC Financial Crimes Enforcement Network 5045 E Butler Ave., Fresno, CA 93727–5136. 20227. (FinCEN). Appeals may be delivered personally to the 2. Public reading room. FinCEN will Appendix C to Subpart A of Part 1— Office of the Commissioner, Bureau of the provide records on the online reading room Fiscal Service, 401 14th Street SW, Bureau of Engraving and Printing located on the FinCEN FOIA page or in the Washington, DC. 1. In general. This appendix applies to the Code of Federal Regulations. Bureau of Engraving and Printing (BEP). Appendix E to Subpart A of Part 1— 3. Requests for records. Initial 2. Public reading room. BEP’s public United States Mint determinations as to whether to grant reading room is located at 14th and C Streets requests for records of FinCEN will be made SW, Washington, DC 20228. Individuals 1. In general. This appendix applies to the by the Freedom of Information Act/Privacy United States Mint. wishing to visit the public reading room must Act Officer, FinCEN. Requests for records 2. Public reading room. The U.S. Mint will request an appointment by telephoning (202) may be mailed to: Freecom of Information provide a room on an ad hoc basis when 874–2500. The reading room is open on Act/Privacy Act Request, Financial Crimes necessary. Contact the Freedom of official business days from 10:00 a.m. to 4:00 Enforcement Network, Post Office Box 39, Information/Privacy Act Officer, United p.m. eastern standard time. Visitors shall Vienna, VA 22183. States Mint, Judiciary Square Building, 7th 4. Administrative appeal of initial comply with 31 CFR part 605, governing the Floor, 633 3rd Street NW, Washington, DC conduct of persons within the buildings and determination to deny records. Appellate 20220. determinations with respect to the records of grounds of the BEP. In addition, BEP also 3. Requests for records. Initial maintains an electronic reading room, which FinCEN will be made by the Director of determinations as to whether to grant FinCEN or the delegate of the Director. may be accessed at http://www.bep.gov/ requests for records of the United States Mint bepfoialibrary.html. Appeals should be mailed to: Freedom of will be made by the Freedom of Information/ Information Act Appeal, Post Office Box 39, 3. Requests for records. Initial Privacy Act Officer, United States Mint. determinations as to whether to grant or deny Vienna, VA 22183, or emailed to: Requests may be mailed or delivered in [email protected]. requests for records of the BEP or applicable person to: Freedom of Information Act fees will be made by the BEP Director Request, Freedom of Information/Privacy Act Appendix H to Subpart A of Part 1— delegate, i.e., Disclosure Officer. Requests Officer, United States Mint, Judiciary Square Alcohol and Tobacco Tax and Trade may be mailed or faxed to: FOIA/PA Request, Building, 7th Floor, 633 3rd Street NW, Bureau Disclosure Officer, Bureau of Engraving and Washington, DC 20220. Printing, Office of the Chief Counsel—FOIA 4. Administrative appeal of initial 1. In general. This appendix applies to the and Transparency Services, Washington, DC determination to deny records. Appellate Alcohol and Tobacco Tax and Trade Bureau 20228–0001, Fax Number: (202) 874–2951. determinations with respect to records of the (TTB). 4. Administrative Appeal of initial United States Mint will be made by the 2. Public reading room. The public reading determination to deny records. Appellate Director of the Mint. Appeals made by mail room for TTB is maintained at 1310 G Street determinations with respect to records of the should be addressed to: Freedom of NW, Washington, DC 20005. For building BEP will be made by the Director of the BEP Information Appeal, Director, United States security purposes, visitors are required to or the delegate of the Director for purposes Mint, Judiciary Square Building, 7th Floor, make an appointment by calling 202–882– of this section. Appeals may be mailed or 633 3rd Street NW, Washington, DC 20220. 9904. delivered in person to: FOIA/PA APPEAL, 3. Requests for records. Initial Director, Bureau of Engraving and Printing, Appendix F to Subpart A of Part 1— determinations as to whether to grant Office of the Director, 14th and C Streets SW, Office of the Comptroller of the requests for records of TTB will be made by Washington, DC 20228–0001. Currency the Director, Regulations and Rulings Division. Requests for records may be mailed Appendix D to Subpart A of Part 1— 1. In general. This appendix applies to the to: TTB FOIA Requester Service Center, 1310 Bureau of the Fiscal Service Office of the Comptroller of the Currency. G Street NW, Box 12, Washington, DC 20005. 2. Public reading room. The Office of the Requests may also be faxed to: 202–453– 1. In general. This appendix applies to the Comptroller of the Currency will make 2331. Bureau of the Fiscal Service. materials available through its Public 4. Administrative appeal of initial 2. Public reading room. The public reading Information Room at 250 E Street SW, determination to deny records. Appellate room for the Bureau of the Fiscal Service is Washington, DC 20219. determinations with respect to the records of the Treasury Library. The library is located 3. Requests for records. Initial TTB will be made by the Assistant in the Freedman’s Bank Building (Treasury determinations as to whether to grant Administrator (Headquarters Operations), Annex), Room 1020, 1500 Pennsylvania requests for records of the Office of the Alcohol and Tobacco Tax and Trade Bureau Avenue NW, Washington, DC 20220. For Comptroller of the Currency will be made by or the delegate of such official. Appeals may building security reasons, visitors are the Disclosure Officer or the official so be mailed or delivered in person to: FOIA required to make an appointment by calling designated. Requests may be mailed or Appeal, Assistant Administrator 202–622–0990. Fiscal Service also maintains delivered in person to: Freedom of (Headquarters Operations), Alcohol and an electronic reading room, which may be Information Act Request, Disclosure Officer, Tobacco Tax and Trade Bureau, 1310 G accessed at https://www.fiscal.treasury.gov/ Communications Division, 3rd Floor, Street NW, Box 12, Washington, DC 20005. foia/foia_readingroom.htm. Comptroller of the Currency, 250 E Street 3. Requests for records. Initial SW, Washington, DC 20219. Appendix I to Subpart A of Part 1— determinations whether to grant requests for 4. Administrative appeal of initial Treasury Inspector General for Tax records will be made by the Disclosure determination to deny records. Appellate Administration Officer, Bureau of the Fiscal Service. determinations with respect to records of the Requests may be mailed or delivered in Comptroller of the Currency will be made by 1. In general. This appendix applies to the person to: the Chief Counsel or delegates of such Treasury Inspector General for Tax Freedom of Information Request, official. Appeals made by mail shall be Administration (TIGTA). Disclosure Officer, Bureau of the Fiscal addressed to: Communications Division, 2. Public reading room. TIGTA will Service, 401 14th Street SW, Washington, DC Comptroller of the Currency, 250 E Street provide a room upon request when 20227. SW, Washington, DC 20219. necessary. Contact the Disclosure Branch,

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Office of Chief Counsel, TIGTA, at 202–622– www.regulations.gov or via email to approved SIP regulations and control 4068. [email protected]. Follow the online strategies are federally enforceable. 3. Requests for records. Initial instructions for submitting comments. B. New Mexico’s Submittals determinations as to whether to grant Once submitted, comments cannot be requests for records of TIGTA will be made On August 6, 2015, the New Mexico by the Disclosure Officer, TIGTA. Requests edited or removed from Regulations.gov. The EPA may publish any comment Environment Department (NMED) for records may be mailed to: Freedom of provided a demonstration of how the Information Act/Privacy Act Request, received to its public docket. Do not Treasury Inspector General for Tax submit electronically any information existing New Mexico SIP met the Administration, Office of Chief Counsel, you consider to be Confidential applicable section 110(a)(2) Disclosure Branch, 1401 H Street NW, Room Business Information (CBI) or other requirements for the revised primary 469, Washington, DC 20005. You may also information whose disclosure is annual fine particulate matter (PM2.5) view the How to Make a FOIA Request for restricted by statute. Multimedia National Ambient Air Quality Standard TIGTA Records at https://www.treasury.gov/ submissions (audio, video, etc.) must be (NAAQS) promulgated on December 14, tigta/important_foia_mafr.shtml. TIGTA’s accompanied by a written comment. 2012 (78 FR 3085, January 15,2013). FOIA email address is FOIA.Reading.Room@ Additionally, NMED provided updates tigta.treas.gov. The written comment is considered the official comment and should include to statutes originally approved into the 4. Administrative appeal of initial SIP on November 2, 1984 (49 FR 44099). determination to deny records. Appellate discussion of all points you wish to determinations with respect to the records of make. The EPA will generally not Sections 110(a)(2)(E)(ii) and 128 of the TIGTA will be made by the Chief Counsel, consider comments or comment CAA require SIPs to contain statutory or TIGTA, or the delegate of the Chief Counsel. contents located outside of the primary regulatory provisions that: (1) Any Appeals should be mailed to: Freedom of submission (i.e. on the web, cloud, or board or body which approves permits Information Act/Privacy Act Appeal, other file sharing system). For or enforcement orders under the CAA Treasury Inspector General for Tax have at least a majority of its members Administration, Office of Chief Counsel, additional submission methods, please contact Jeff Riley, (214) 665–8542, represent the public interest and not 1401 H Street NW, Room 469, Washington, derive any significant portion of their DC 20005. [email protected]. For the full EPA public comment policy, information income from persons subject to permits David F. Eisner, about CBI or multimedia submissions, or enforcement orders under the CAA; Assistant Secretary for Management. and general guidance on making and (2) any potential conflict of interest by members of such board or body or [FR Doc. 2019–03320 Filed 2–26–19; 8:45 am] effective comments, please visit https:// the head of an executive agency with BILLING CODE 4810–25–P www.epa.gov/dockets/commenting-epa- similar powers be adequately disclosed. dockets. EPA approved updates to statutes under Docket: The index to the docket for New Mexico Statutes Annotated 1978 ENVIRONMENTAL PROTECTION this action is available electronically at (NMSA) Chapter 10, Article 16 and AGENCY www.regulations.gov and in hard copy NMSA 1978 Chapter 74, Articles 1 & 2 at EPA Region 6, 1445 Ross Avenue, to satisfy the CAA sections 40 CFR Part 52 Suite 700, Dallas, Texas. While all 110(a)(2)(E)(ii) and 128 requirements. documents in the docket are listed in [EPA–R06–OAR–2015–0850; FRL–9989–09– However, the August 6, 2015 State Region 6] the index, some information may be submittal included other updated publicly available only at the hard copy statutes under NMSA 1978 Chapter 9, Air Plan Approval; New Mexico; location (e.g., copyrighted material), and Article 7A and NMSA 1978 Chapter 74, Approval of Revised Statutes; Error some may not be publicly available at Articles 1 & 2 that EPA did not act Correction either location (e.g., CBI). upon. See EPA’s proposal (82 FR 60933, FOR FURTHER INFORMATION CONTACT: Jeff December 26, 2017) and final approval AGENCY: Environmental Protection Riley, (214) 665–8542, Riley.Jeffrey@ (83 FR 12493, March 22, 2018) for Agency (EPA). epa.gov. To inspect the hard copy further detail. ACTION: Direct final rule. materials, please schedule an C. Error Corrections Under CAA Section appointment with Jeff Riley or Mr. Bill SUMMARY: Pursuant to the Federal Clean 110(k)(6) Deese at (214) 665–7253. Air Act (CAA or the Act), the Section 110(k)(6) of the CAA provides SUPPLEMENTARY INFORMATION: Environmental Protection Agency (EPA) EPA with the authority to make Throughout this document ‘‘we,’’ ‘‘us,’’ is approving revisions to New Mexico’s corrections to prior SIP actions that are and ‘‘our’’ means the EPA. State Implementation Plan (SIP) that subsequently found to be in error in the incorporate updates to the New Mexico I. Background same manner as the prior action, and to statutes. EPA is also correcting its do so without requiring any further A. CAA and SIPs previous approval of some statute submission from the State. On March 6, provisions as approval of these Section 110 of the CAA requires states 2013, the Eleventh Circuit Court of provisions into the SIP was in error. to develop and submit to the EPA a SIP Appeals issued a 2–1 decision relevant DATES: This rule is effective on May 28, to ensure that state air quality meets to EPA authority under Section 2019 without further notice, unless the National Ambient Air Quality 110(k)(6). See Alabama Environmental EPA receives relevant adverse comment Standards. These ambient standards Council v. EPA, 711 F.3d 1277 (11th Cir. by March 29, 2019. If the EPA receives currently address six criteria pollutants: 2013). The majority opinion found that such comment, the EPA will publish a carbon monoxide, nitrogen dioxide, CAA section 110(k)(6) permits EPA to timely withdrawal in the Federal ozone, lead, particulate matter, and revise a SIP provision approved ‘‘in Register informing the public that this sulfur dioxide. Each federally-approved error’’ without any further submission rule will not take effect. SIP protects air quality primarily by from the State, so long as EPA provides ADDRESSES: Submit your comments, addressing air pollution at its point of the State and the public with its error identified by Docket No. EPA–R06– origin through air pollution regulations determination and the basis thereof. OAR–2015–0850, at https:// and control strategies. The EPA This affirms EPA’s authority to use

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section 110(k)(6) to revise a prior action EPA issuing the standard. An air agency criteria established by section 110(a)(2) related to a state’s implementation plan. may cite existing EPA-approved of the CAA to determine if these See 711 F3d at 1287. provisions and/or adopt new or revised provisions are integral to meeting the While CAA section 110(k)(6) provides statutory authorities and regulations, as basic structural requirements of an air EPA with the authority to correct its necessary, in order to address each quality management program. Similarly, own ‘‘error,’’ nowhere does this element of the infrastructure SIP.1 In EPA has evaluated the SIP-approved provision or any other provision in the accordance with 40 CFR 51.231, the statutes under NMSA 1978 Chapter 74, CAA define what qualifies as ‘‘error.’’ infrastructure SIP submission should Articles 1 and 2 to determine if Thus, EPA believes that the term should identify the provisions of law or elements of our November 2, 1984 final be given its plain language, everyday regulations that the air agency approval were in error and should meaning, which includes all determines provide the necessary therefore be removed from the New unintentional, incorrect or wrong authority, and the air agency should Mexico SIP. Below is a summary of actions or mistakes. submit copies of those laws or EPA’s evaluation; see our Technical D. What criteria must be met for the regulations with the infrastructure SIP Support Document (TSD) prepared in EPA to approve this SIP revision? submission. conjunction with this SIP revision for more information concerning our Under section 110(a)(2) of the CAA, II. The EPA’s Evaluation states are required to develop and evaluation. maintain an air quality management As noted above, EPA’s March 22, EPA has determined that the State’s program that meets various basic 2018 final action approved updates to updates to the NMSA 1978 sections structural requirements, including, but statutes under NMSA 1978 Chapter 10, represented in Table 1 grant the not limited to: enforceable emission Article 16 and NMSA 1978 Chapter 74, Environmental Improvement Board limitations; an ambient monitoring Articles 1 & 2 to satisfy the CAA (EIB) and/or NMED with authority for program; an enforcement program; air sections 110(a)(2)(E)(ii) and 128 SIP development, enforcement, quality modeling capabilities; and requirements. However, the August 6, inspections, construction and operating adequate personnel, resources, and legal 2015 State submittal also included permits, air monitoring, development of authority as per 40 CFR 51.230. This updated statutes under NMSA 1978 air quality studies and modeling, ‘‘infrastructure SIP’’ requirement is met Chapter 9, Article 7A and NMSA 1978 reporting, consultation, assurance of through state submittal of SIPs that Chapter 74, Articles 1 & 2 that EPA did adequate implementation, and implement, maintain, and enforce a new not act upon. EPA has evaluated these addressing of environmental or revised NAAQS within 3 years of remaining updated statues against the emergencies.

TABLE 1—AUGUST 6, 2015 UPDATES TO NMSA 1978 CHAPTER 74, ARTICLE 2 SECTIONS FOR APPROVAL TO NEW MEXICO SIP

NMSA 1978 section Title Content

74–2–1 ...... Short Title ...... Identifies NMSA 1978 Chapter 74, Article 2 as Air Quality Control Act (AQCA). 74–2–2 ...... Definitions ...... Definitions used in AQCA. 74–2–3 ...... Environmental improvement board Establishes jurisdiction of EIB. 74–2–5 ...... Duties and powers; environmental Grants EIB authority for SIP development, enforcement, air moni- improvement board; local board. toring, reporting, assurance of adequate implementation. 74–2–7 ...... Permits ...... Provides EIB with authority for construction and operating permits. 74–2–10 ...... Emergency powers of the sec- Provides NMED with authority to address environmental emer- retary and the director. gencies. 74–2–11.1 ...... Limitations on regulations ...... Specifies limitations to EIB and local board authorities, jurisdictions. 74–2–17 ...... Continuing effect of existing laws, Establishes precedence of AQCA over any conflicting legislation. rules and regulations.

These sections establish an air quality find the State’s submitted revisions to EPA has determined that our management program for New Mexico these sections to be non-substantive and November 2, 1984 final approval of the that meets the various basic structural consistent with the CAA. EPA is NMSA 1978 sections represented in requirements of CAA section 110(a)(2), approving these revisions into the New Table 2 was done in error, and these and therefore their inclusion into the Mexico SIP. sections should therefore be removed SIP is warranted and appropriate. We from the New Mexico SIP.

TABLE 2—NMSA 1978 CHAPTER 74, ARTICLE 2 SECTIONS FOR REMOVAL FROM NEW MEXICO SIP

NMSA 1978 section Title Reason for removal

74–2–6 ...... Adoption of Regulations; Notice Administrative requirements, hearing board procedures. and Hearings. 74–2–8 ...... Variances ...... Inconsistent with federally-enforceable requirements. 74–2–9 ...... Variances—Judicial Review ...... Inconsistent with federally-enforceable requirements. 74–2–11 ...... Confidential Information ...... Duplicative of SIP-approved regulation (20.2.1.115 NMAC).

1 ‘‘Guidance on Infrastructure State Memorandum from Stephen D. Page, September 13, sipstatus/docs/Guidance_on_Infrastructure_SIP_ Implementation Plan (SIP) Elements under Clean 2013, https://www3.epa.gov/airquality/urbanair/ Elements_Multipollutant_FINAL_Sept_2013.pdf. Air Act sections 110(a)(1) and 110(a)(2),’’

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TABLE 2—NMSA 1978 CHAPTER 74, ARTICLE 2 SECTIONS FOR REMOVAL FROM NEW MEXICO SIP—Continued

NMSA 1978 section Title Reason for removal

74–2–12 ...... Enforcement ...... SIP-approved 74–2–4.D provides EIB & secretary with enforcement authority. 74–2–13 ...... Inspection ...... SIP-approved 74–2–5.1A provides department/local agency inspec- tion authority. 74–2–14 ...... Penalties ...... Inconsistent with federally-enforceable requirements. 74–2–15 ...... Additional Means of Enforcement. Inconsistent with federally-enforceable requirements. 74–2–16 ...... Declaratory Judgement on Regula- Inconsistent with federally-enforceable requirements. tions.

These elements are appropriate for receive relevant adverse comment on an Executive Orders 12866 (58 FR 51735, state and local agencies to adopt and amendment, paragraph, or section of October 4, 1993) and 13563 (76 FR 3821, implement, but it is not necessary or this rule and if that provision may be January 21, 2011); appropriate to make them federally severed from the remainder of the rule, • Is not an Executive Order 13771 (82 enforceable by incorporating them into we may adopt as final those provisions FR 9339, February 2, 2017) regulatory the applicable SIP. Moreover, inclusion of the rule that are not the subject of an action because SIP approvals are of sections 74–2–8, 74–2–9, 74–2–14, adverse comment. exempted under Executive Order 12866; 74–2–15, and 74–2–16 into the SIP • Does not impose an information IV. Incorporation by Reference present inconsistencies with the Act, collection burden under the provisions and Federal requirements. EPA is In this rule, the EPA is finalizing of the Paperwork Reduction Act (44 regulatory text that includes U.S.C. 3501 et seq.); removing these sections from the New • Mexico SIP, and will not act upon incorporation by reference. In Is certified as not having a updates to these sections contained in accordance with requirements of 1 CFR significant economic impact on a the State’s August 6, 2015 submittal. 51.5, the EPA is finalizing the substantial number of small entities Further, the State’s submittal incorporation by reference of the under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); identified NMSA 1978, section 74–2– revisions to the New Mexico statutes as • 15.1 (Primary Nonferrous Smelter described in the Final Action section Does not contain any unfunded Orders) as having been repealed by the above. The EPA has made, and will mandate or significantly or uniquely affect small governments, as described State in 1992. EPA will act accordingly continue to make, these materials in the Unfunded Mandates Reform Act to remove this section from the SIP. generally available through www.regulations.gov and at the EPA of 1995 (Public Law 104–4); • Does not have federalism III. Final Action Region 6 Office (please contact Jeff implications as specified in Executive We are approving revisions to the Riley, (214) 665–8542, Riley.Jeffrey@ Order 13132 (64 FR 43255, August 10, New Mexico SIP that pertain to updated epa.gov for more information). 1999); statutes under NMSA 1978 Chapter 74, Therefore, these materials have been • Is not an economically significant Article 2 contained in the State’s August approved by EPA for inclusion in the regulatory action based on health or 6, 2015 submittal. We are also making SIP, have been incorporated by safety risks subject to Executive Order an error correction to remove from the reference by EPA into that plan, are 13045 (62 FR 19885, April 23, 1997); New Mexico SIP certain statutes under fully federally enforceable under • Is not a significant regulatory action NMSA 1978 Chapter 74, Article 2 sections 110 and 113 of the CAA as of subject to Executive Order 13211 (66 FR originally approved in our November 2, the effective date of the final rulemaking 28355, May 22, 2001); 1984 rulemaking. of EPA’s approval, and will be • Is not subject to requirements of The EPA is publishing this rule incorporated by reference in the next section 12(d) of the National without prior proposal because we view update to the SIP compilation (62 FR Technology Transfer and Advancement this as a non-controversial amendment 27968, May 22, 1997). Act of 1995 (15 U.S.C. 272 note) because and anticipate no adverse comments. V. Statutory and Executive Order application of those requirements would However, in the proposed rules section Reviews be inconsistent with the CAA; and of this Federal Register publication, we • Does not provide EPA with the are publishing a separate document that Under the CAA, the Administrator is discretionary authority to address, as will serve as the proposal to approve the required to approve a SIP submission appropriate, disproportionate human SIP revision if relevant adverse that complies with the provisions of the health or environmental effects, using comments are received. This rule will Act and applicable Federal regulations. practicable and legally permissible be effective on May 28, 2019 without 42 U.S.C. 7410(k); 40 CFR 52.02(a). methods, under Executive Order 12898 further notice unless we receive relevant Thus, in reviewing SIP submissions, the (59 FR 7629, February 16, 1994). adverse comment by March 29, 2019. If EPA’s role is to approve state choices, In addition, the SIP is not approved we receive relevant adverse comments, provided that they meet the criteria of to apply on any Indian reservation land we will publish a timely withdrawal in the CAA. Accordingly, this action or in any other area where EPA or an the Federal Register informing the merely approves state law as meeting Indian tribe has demonstrated that a public that the rule will not take effect. Federal requirements and does not tribe has jurisdiction. In those areas of We will address all public comments in impose additional requirements beyond Indian country, the rule does not have a subsequent final rule based on the those imposed by state law. For that tribal implications and will not impose proposed rule. We will not institute a reason, this action: substantial direct costs on tribal second comment period on this action. • Is not a ‘‘significant regulatory governments or preempt tribal law as Any parties interested in commenting action’’ subject to review by the Office specified by Executive Order 13175 (65 must do so now. Please note that if we of Management and Budget under FR 67249, November 9, 2000).

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The Congressional Review Act, 5 purposes of judicial review nor does it Subpart GG—New Mexico U.S.C. 801 et seq., as added by the Small extend the time within which a petition Business Regulatory Enforcement for judicial review may be filed, and ■ 2. In § 52.1620(e), the table titled Fairness Act of 1996, generally provides shall not postpone the effectiveness of ‘‘EPA-Approved New Mexico Statutes’’ that before a rule may take effect, the such rule or action. This action may not is amended under ‘‘Chapter 74— agency promulgating the rule must be challenged later in proceedings to Environmental Improvement’’ by: submit a rule report, which includes a enforce its requirements. (See section ■ a. Revising the entries for Sections 74– copy of the rule, to each House of the 307(b)(2).) 2–1, 74–2–2, 74–2–3, and 74–2–5; Congress and to the Comptroller General ■ b. Removing the entry for Section 74– List of Subjects in 40 CFR Part 52 of the United States. The EPA will 2–6; submit a report containing this rule and Environmental protection, Air ■ c. Revising the entry for Section 74– other required information to the U.S. pollution control, Incorporation by 2–7; Senate, the U.S. House of reference, Nitrogen dioxide, Ozone, ■ d. Removing the entries for Sections Representatives, and the Comptroller Particulate matter, Reporting and 74–2–8 and 74–2–9; General of the United States prior to recordkeeping requirements, Sulfur ■ e. Revising the entry for 74–2–10; publication of the rule in the Federal oxides, Volatile organic compounds. ■ f. Removing the entry for Section 74– Register. A major rule cannot take effect Dated: February 14, 2019. 2–11; ■ until 60 days after it is published in the Anne Idsal, g. Revising the entry for Section 74– Federal Register. This action is not a Regional Administrator, Region 6. 2–11.1; ‘‘major rule’’ as defined by 5 U.S.C. ■ h. Removing the entries for Sections 804(2). 40 CFR part 52 is amended as follows: 74–2–12, 74–2–13, 74–2–14, 74–2–15, Under section 307(b)(1) of the CAA, 74–2–15.1, and 74–2–16; and petitions for judicial review of this PART 52—APPROVAL AND ■ i. Revising the entry for Section 74–2– action must be filed in the United States PROMULGATION OF 17. Court of Appeals for the appropriate IMPLEMENTATION PLANS The revisions read as follows: circuit by April 29, 2019. Filing a petition for reconsideration by the ■ 1. The authority citation for part 52 § 52.1620 Identification of plan. Administrator of this final rule does not continues to read as follows: * * * * * affect the finality of this rule for the Authority: 42 U.S.C. 7401 et seq. (e) * * *

EPA-APPROVED NEW MEXICO STATUTES

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

New Mexico Statutes

*******

Chapter 74—Environmental Improvement

******* 74–2–1 ...... Short Title ...... 8/6/2015 2/27/2019, [Insert Federal Register citation]. 74–2–2 ...... Definitions ...... 8/6/2015 2/27/2019, [Insert Federal Register citation]. 74–2–3 ...... Environmental improvement board ...... 8/6/2015 2/27/2019, [Insert Federal Register citation].

******* 74–2–5 ...... Duties and powers; environmental im- 8/6/2015 2/27/2019, [Insert Federal provement board; local board. Register citation]. 74–2–7 ...... Permits; permit appeals to the environ- 8/6/2015 2/27/2019, [Insert Federal mental improvement board or the local Register citation]. board; permit fees. 74–2–10 ...... Emergency powers of the secretary and 8/6/2015 2/27/2019, [Insert Federal the director. Register citation]. 74–2–11.1 ...... Limitations on regulations ...... 8/6/2015 2/27/2019, [Insert Federal Register citation]. 74–2–17 ...... Continuing effect of existing laws, rules 8/6/2015 2/27/2019, [Insert Federal and regulations. Register citation].

*******

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* * * * * II. Have the requirements for approval of a requirements and does not impose [FR Doc. 2019–02862 Filed 2–26–19; 8:45 am] part 70 revision been met? additional requirements beyond those BILLING CODE 6560–50–P III. What action is EPA taking? imposed by state law. For that reason, IV. Statutory and Executive Order Reviews this final action: I. Background • Is not a significant regulatory action ENVIRONMENTAL PROTECTION subject to review by the Office of AGENCY On December 19, 2018 (83 FR 65115), Management and Budget under EPA published a notice of proposed Executive Orders 12866 (58 FR 51735, 40 CFR Part 70 rulemaking (NPR) for the State of October 4, 1993) and 13563 (76 FR 3821, Kansas. In the NPR, EPA proposed [EPA–R07–OAR–2018–0828; FRL 9989–43– January 21, 2011); Region 7] approval of revisions to the Kansas OPP. • Is not an Executive Order 13771 (82 The revisions were submitted by the FR 9339, February 2, 2017) regulatory Approval of Operating Permits State of Kansas on January 22, 2018. action because Title V approvals are Program; Kansas; Reporting Emission Revisions to the program include exempted under Executive Order 12866. Data, Emission Fees and Process revoking Kansas Administrative • Does not impose an information Information Regulation (K.A.R.) 28–19–202; adding collection burden under the provisions new language to K.A.R. 28–19–517 of the Paperwork Reduction Act (44 AGENCY: Environmental Protection which parallels language in the revoked Agency (EPA). U.S.C. 3501 et seq.); K.A.R. 28–19–202; increasing the • Is certified as not having a ACTION: Final rule. annual emission fee from $37 dollars significant economic impact on a SUMMARY: The Environmental Protection per ton to $53 dollars per ton; increasing substantial number of small entities Agency (EPA) is taking final action to all application fees in K.A.R. 28–19– under the Regulatory Flexibility Act (5 approve revisions to the Operating 516; establishing a baseline emission U.S.C. 601 et seq.); Permits Program (OPP) for the State of fee; and adding additional clarifications • Does not contain any unfunded Kansas. This final action will amend the to the Program to address fees, refunds, mandate or significantly or uniquely Kansas rules to reorganize, clarify, and electronic submittal, and who is affect small governments, as described update the Class I emission fee, required to submit an annual emissions in the Unfunded Mandates Reform Act application fee, and emissions inventory inventory. A detailed discussion of of 1995 (Pub. L. 104–4); • regulations and ensure that Kansas’s Kansas’s OPP submission and EPA’s Does not have Federalism OPP is adequately funded. Approval of rationale for approving the OPP implications as specified in Executive these revisions ensures consistency submission were provided in the NPR Order 13132 (64 FR 43255, August 10, and the associated Technical Support 1999); between the State and federally- • approved rules and does not impact air Document in the docket for this Is not an economically significant quality. rulemaking and will not be restated regulatory action based on health or here. No comments were received safety risks subject to Executive Order DATES: This final rule is effective on regarding the NPR. 13045 (62 FR 19885, April 23, 1997); March 29, 2019. • Is not a significant regulatory action ADDRESSES: EPA has established a II. Have the requirements for approval subject to Executive Order 13211 (66 FR docket for this action under Docket ID of a part 70 revision been met? 28355, May 22, 2001); No. EPA–R07–OAR–2018–0828. All The state provided a public comment • Is not subject to requirements of the documents in the docket are listed on period for this OPP revision from National Technology Transfer and the https://www.regulations.gov September 7, 2017, to November 15, Advancement Act (NTTA) because this website. Although listed in the index, 2017, and received comments. In rulemaking does not involve technical some information is not publicly response to the comments, Kansas standards; and available, i.e., CBI or other information revised the rule prior to submitting to • Does not provide EPA with the whose disclosure is restricted by statute. the EPA. The revisions are consistent discretionary authority to address, as Certain other material, such as with applicable EPA requirements in appropriate, disproportionate human copyrighted material, is not placed on title V of the CAA and 40 CFR part 70. health or environmental effects, using the internet and will be publicly practicable and legally permissible available only in hard copy form. III. What action is EPA taking? methods, under Executive Order 12898 Publicly available docket materials are The EPA is taking final action to (59 FR 7629, February 16, 1994). available through https:// approve revisions to the Kansas OPP by In addition, this approval of the www.regulations.gov or please contact approving the State’s request to revoke revision to Kansas’s Title V Operating the person identified in the FOR FURTHER K.A.R. 28–19–202, Annual emissions Permit Program does not have tribal INFORMATION CONTACT section for fees; and to amend K.A.R. 28–19–516, implications and will not impose additional information. Class I operating permits, application substantial direct costs on tribal FOR FURTHER INFORMATION CONTACT: fees; and K.A.R. 28–19–517, Class I governments or preempt tribal law as Deborah Bredehoft, Environmental operating permits, annual emissions specified by Executive Order 13175 (65 Protection Agency, Air Planning and inventory and fees. Approval of these FR 67249, November 9, 2000). Development Branch, 11201 Renner revisions will ensure consistency The Congressional Review Act, 5 Boulevard, Lenexa, Kansas 66219 at between the state and federally- U.S.C. 801 et seq., as added by the Small (913) 551–7164, or by email at approved rules. EPA has determined Business Regulatory Enforcement [email protected]. that these changes will not adversely Fairness Act of 1996, generally provides SUPPLEMENTARY INFORMATION: impact air emissions. that before a rule may take effect, the Throughout this document ‘‘we,’’ ‘‘us,’’ agency promulgating the rule must IV. Statutory and Executive Order and ‘‘our’’ refer to EPA. submit a rule report, which includes a Reviews copy of the rule, to each House of the Table of Contents This final action merely approves Congress and to the Comptroller General I. Background state law as meeting Federal of the United States. EPA will submit a

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report containing this action and other ENVIRONMENTAL PROTECTION applies to them. Potentially affected required information to the U.S. Senate, AGENCY entities may include: the U.S. House of Representatives, and • Crop production (NAICS code 111). the Comptroller General of the United 40 CFR Part 180 • Animal production (NAICS code States prior to publication of the rule in 112). the Federal Register. A major rule [EPA–HQ–OPP–2018–0037; FRL–9987–32] • Food manufacturing (NAICS code cannot take effect until 60 days after it 311). Abamectin; Pesticide Tolerances • is published in the Federal Register. Pesticide manufacturing (NAICS This action is not a ‘‘major rule’’ as AGENCY: Environmental Protection code 32532). defined by 5 U.S.C. 804(2). Agency (EPA). B. How can I get electronic access to Under section 307(b)(1) of the Clean ACTION: Final rule. other related information? Air Act, petitions for judicial review of You may access a frequently updated this action must be filed in the United SUMMARY: This regulation establishes tolerances for residues of abamectin in electronic version of EPA’s tolerance States Court of Appeals for the regulations at 40 CFR part 180 through appropriate circuit by April 29, 2019. or on bananas and tea. Syngenta Crop Protection, LLC, requested these the Government Printing Office’s e-CFR Filing a petition for reconsideration by site at http://www.ecfr.gov/cgi-bin/text- the Administrator of this final rule does tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA). idx?&c=ecfr&tpl=/ecfrbrowse/Title40/ not affect the finality of this action for 40tab_02.tpl. the purposes of judicial review nor does DATES: This regulation is effective it extend the time within which a February 27, 2019. Objections and C. How can I file an objection or hearing petition for judicial review may be filed, requests for hearings must be received request? and shall not postpone the effectiveness on or before April 29, 2019, and must Under FFDCA section 408(g), 21 of such rule or action. This action may be filed in accordance with the U.S.C. 346a, any person may file an not be challenged later in proceedings to instructions provided in 40 CFR part objection to any aspect of this regulation enforce its requirements. (See section 178 (see also Unit I.C. of the and may also request a hearing on those 307(b)(2).) SUPPLEMENTARY INFORMATION). objections. You must file your objection ADDRESSES: List of Subjects in 40 CFR Part 70 The docket for this action, or request a hearing on this regulation identified by docket identification (ID) in accordance with the instructions Administrative practice and number EPA–HQ–OPP–2018–0037, is provided in 40 CFR part 178. To ensure procedure, Air pollution control, available at http://www.regulations.gov proper receipt by EPA, you must Intergovernmental relations, Operating or at the Office of Pesticide Programs identify docket ID number EPA–HQ– permits, Reporting and recordkeeping Regulatory Public Docket (OPP Docket) OPP–2018–0037 in the subject line on requirements. in the Environmental Protection Agency the first page of your submission. All Docket Center (EPA/DC), West William objections and requests for a hearing Dated: February 22, 2019. Jefferson Clinton Bldg., Rm. 3334, 1301 must be in writing, and must be James Gulliford, Constitution Ave. NW, Washington, DC received by the Hearing Clerk on or Regional Administrator, Region 7. 20460–0001. The Public Reading Room before April 29, 2019. Addresses for is open from 8:30 a.m. to 4:30 p.m., For the reasons stated in the mail and hand delivery of objections Monday through Friday, excluding legal preamble, EPA amends 40 CFR part 70 and hearing requests are provided in 40 holidays. The telephone number for the as set forth below: CFR 178.25(b). Public Reading Room is (202) 566–1744, In addition to filing an objection or PART 70—STATE OPERATING PERMIT and the telephone number for the OPP hearing request with the Hearing Clerk PROGRAMS Docket is (703) 305–5805. Please review as described in 40 CFR part 178, please the visitor instructions and additional submit a copy of the filing (excluding ■ 1. The authority citation for part 70 information about the docket available any Confidential Business Information continues to read as follows: at http://www.epa.gov/dockets. (CBI)) for inclusion in the public docket. FOR FURTHER INFORMATION CONTACT: Information not marked confidential Authority: 42 U.S.C. 7401 et seq. Michael Goodis, Registration Division pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior ■ 2. Amend appendix A to part 70 by (7505P), Office of Pesticide Programs, notice. Submit the non-CBI copy of your adding paragraph (g) under Kansas to Environmental Protection Agency, 1200 objection or hearing request, identified read as follows: Pennsylvania Ave. NW, Washington, DC 20460–0001; main telephone number: by docket ID number EPA–HQ–OPP– Appendix A to Part 70—Approval (703) 305–7090; email address: 2018–0037, by one of the following Status of State and Local Operating [email protected]. methods: • Federal eRulemaking Portal: http:// Permits Programs SUPPLEMENTARY INFORMATION: www.regulations.gov. Follow the online * * * * * I. General Information instructions for submitting comments. Kansas Do not submit electronically any A. Does this action apply to me? * * * * * information you consider to be CBI or (g) The Kansas Department of Health and You may be potentially affected by other information whose disclosure is Environment submitted revisions to Kansas this action if you are an agricultural restricted by statute. rules K.A.R. 28–19–202, K.A.R. 28–19–516, producer, food manufacturer, or • Mail: OPP Docket, Environmental and K.A.R. 28–19–517, on January 22, 2018. pesticide manufacturer. The following Protection Agency Docket Center (EPA/ The state effective date is January 5, 2018. list of North American Industrial DC), (28221T), 1200 Pennsylvania Ave. This revision is effective April 29, 2019. Classification System (NAICS) codes is NW, Washington, DC 20460–0001. * * * * * not intended to be exhaustive, but rather • Hand Delivery: To make special [FR Doc. 2019–03356 Filed 2–26–19; 8:45 am] provides a guide to help readers arrangements for hand delivery or BILLING CODE 6560–50–P determine whether this document delivery of boxed information, please

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follow the instructions at http:// of infants and children to the pesticide exposure level—generally referred to as www.epa.gov/dockets/contacts.html. chemical residue in establishing a a population-adjusted dose (PAD) or a Additional instructions on tolerance and to ‘‘ensure that there is a reference dose (RfD)—and a safe margin commenting or visiting the docket, reasonable certainty that no harm will of exposure (MOE). For non-threshold along with more information about result to infants and children from risks, the Agency assumes that any dockets generally, is available at http:// aggregate exposure to the pesticide amount of exposure will lead to some www.epa.gov/dockets. chemical residue. . . .’’ degree of risk. Thus, the Agency Consistent with FFDCA section II. Summary of Petitioned-For estimates risk in terms of the probability 408(b)(2)(D), and the factors specified in Tolerance of an occurrence of the adverse effect FFDCA section 408(b)(2)(D), EPA has expected in a lifetime. For more In the Federal Register of April 11, reviewed the available scientific data information on the general principles 2018 (83 FR 15528) (FRL–9975–57), and other relevant information in EPA uses in risk characterization and a EPA issued a document pursuant to support of this action. EPA has complete description of the risk FFDCA section 408(d)(3), 21 U.S.C. sufficient data to assess the hazards of assessment process, see http:// 346a(d)(3), announcing the filing of and to make a determination on www2.epa.gov/pesticide-science-and- pesticide petitions (PP 7E8636 and aggregate exposure for abamectin assessing-pesticide-risks/assessing- 7E8637) by Syngenta Crop Protection, including exposure resulting from the human-health-risk-pesticides. LLC, P.O. Box 18300, Greensboro, NC tolerances established by this action. A summary of the toxicological 27419. The petition requested that 40 EPA’s assessment of exposures and risks endpoints for abamectin used for human CFR part 180 be amended by associated with abamectin follows. risk assessment is discussed in Unit establishing tolerances for residues of III.B. of the final rule published in the A. Toxicological Profile the insecticide avermectin B1 (a mixture Federal Register of May 2, 2016 (81 FR of avermectins containing greater than EPA has evaluated the available 26147) (FRL–9945–29). or equal to 80% avermectin B1a (5-O- toxicity data and considered its validity, demethyl avermectin A1) and less than completeness, and reliability as well as C. Exposure Assessment or equal to 20% avermectin B1b (5-O- the relationship of the results of the 1. Dietary exposure from food and demethyl -25-de(1-methylpropyl)-25-(1- studies to human risk. EPA has also feed uses. In evaluating dietary methylethyl) avermectin A1)) in or on considered available information exposure to abamectin, EPA considered the raw agricultural commodities tea concerning the variability of the exposure under the petitioned-for (7E8636) at 1 parts per million (ppm) sensitivities of major identifiable tolerances as well as all existing and banana at 0.002 ppm (7E8637). That subgroups of consumers, including abamectin tolerances in 40 CFR 180.449. document referenced a summary of the infants and children. EPA assessed dietary exposures from petition prepared by Syngenta Crop A summary of the toxicological effects abamectin in food as follows: Protection, the registrant, which is of abamectin as well as specific i. Acute exposure. Quantitative acute available in the docket, http:// information on the studies received and dietary exposure and risk assessments www.regulations.gov. Two comments the nature of the adverse effects caused are performed for a food-use pesticide, were received on the notice of filing; by abamectin and the no-observed- if a toxicological study has indicated the however, neither comment refers to adverse-effect-level (NOAEL) and the possibility of an effect of concern abamectin in particular or pesticides in lowest-observed-adverse-effect-level occurring as a result of a 1-day or single general, and are therefore not relevant to (LOAEL) from the toxicity studies are exposure. this action. discussed in the final rule published in Such effects were identified for Based upon review of the data the Federal Register of May 2, 2016 (81 abamectin. In estimating acute dietary supporting the petition, EPA has FR 26147) (FRL–9945–29) and its exposure, EPA used food consumption modified the levels at which tolerances supporting documents. Because nothing information from the 2003–2008 United are being established for tea and banana has changed since the publication of States Department of Agriculture as well as the commodity definition for that rule, EPA is incorporating that (USDA) National Health and Nutrition tea. The reason for these changes are discussion into this preamble. Examination Survey, What We Eat in explained in Unit IV.C. America (NHANES/WWEIA). As to B. Toxicological Points of Departure/ residue levels in food, a refined acute III. Aggregate Risk Assessment and Levels of Concern dietary (food and drinking water) Determination of Safety Once a pesticide’s toxicological exposure assessment was conducted for Section 408(b)(2)(A)(i) of FFDCA profile is determined, EPA identifies all established food uses of abamectin. allows EPA to establish a tolerance (the toxicological points of departure (POD) Acute anticipated residues derived from legal limit for a pesticide chemical and levels of concern to use in field trial data were used. Empirical and residue in or on a food) only if EPA evaluating the risk posed by human 2018 DEEM default processing factors determines that the tolerance is ‘‘safe.’’ exposure to the pesticide. For hazards and PCT estimates were used, as Section 408(b)(2)(A)(ii) of FFDCA that have a threshold below which there available. No monitoring data were defines ‘‘safe’’ to mean that ‘‘there is a is no appreciable risk, the toxicological used. reasonable certainty that no harm will POD is used as the basis for derivation ii. Chronic exposure. The Agency result from aggregate exposure to the of reference values for risk assessment. selected a point of departure for chronic pesticide chemical residue, including PODs are developed based on a careful effects that is the same as the point of all anticipated dietary exposures and all analysis of the doses in each departure for acute effects and so is other exposures for which there is toxicological study to determine the relying on the acute assessment to be reliable information.’’ This includes dose at which no adverse effects are protective of chronic effects. The exposure through drinking water and in observed (the NOAEL) and the lowest Agency assessed chronic exposure for residential settings, but does not include dose at which adverse effects of concern purposes of providing background occupational exposure. Section are identified (the LOAEL). Uncertainty/ dietary exposure for use in the 408(b)(2)(C) of FFDCA requires EPA to safety factors are used in conjunction residential short-term assessments and give special consideration to exposure with the POD to calculate a safe to incorporate residues/exposure from

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the food handling establishment (FHE) the acute dietary risk assessment for the analysis. The average PCT figures for uses. In conducting the chronic dietary following crops: Almond: 80%; apple: each existing use is derived by exposure assessment EPA used the food 30%; apricot: 30%; avocado: 60%; bean, combining available public and private consumption data from the 2003–2008 dry: 2.5%; blackberry: 68%; market survey data for that use, USDA NHANES/WWEIA. As to residue boysenberry: 68%; cantaloupe: 45%; averaging across all observations, and levels in food, a refined chronic dietary celery: 70%; cherry: 20%; corn, sweet: rounding up to the nearest 5%, except (food and drinking water) exposure 57%; cotton: 30%; cucumber: 10%; for those situations in which the average assessment was conducted for all grape: 35%; grapefruit: 90%; hazelnut: PCT is less than 1% or less than 2.5%. established food uses of abamectin. 2.5%; honeydew: 35%; lemon: 55%; In those cases, the Agency would use Average residues from field trials were lettuce: 45%; loganberry: 68%; less than 1% or less than 2.5% as the used. Residues from use in FHE were nectarine: 20%; onion, bulb: 10%; average PCT value, respectively. The included. Empirical and default orange: 70%; peach: 25%; pear: 85%; maximum PCT figure is the highest processing factors and PCT estimates pecan: 2.5%; pepper: 30%; pistachio: observed maximum value reported were used, as available. 2.5%; plum/prune: 35%; potato: 20%; within the most recent 10 years of iii. Cancer. Based on the data pumpkin: 10%; raspberry: 68%; available public and private market summarized in Unit III.A., EPA has soybean: 11%; spinach: 45%; squash: survey data for the existing use and concluded that abamectin does not pose 15%; strawberry: 45%; tangerine: 55%; rounded up to the nearest multiple of a cancer risk to humans. Therefore, a tomato: 25%; walnut: 55%; and 5%, except where the maximum PCT is dietary exposure assessment for the watermelon: 15%. less than 2.5%, in which case, the purpose of assessing cancer risk is The PCT values that were used to Agency uses less than 2.5% as the unnecessary. refine the livestock commodities for the maximum PCT. iv. Anticipated residue and percent acute assessment were based on: Sweet The Agency believes that the three crop treated (PCT) information. Section corn (57%) for beef, goat, horse, and conditions discussed in Unit III.C.1.iv. 408(b)(2)(E) of FFDCA authorizes EPA sheep commodities; and the FHE uses have been met. With respect to to use available data and information on (5%) for hog and poultry meat and meat Condition a, PCT estimates are derived the anticipated residue levels of byproducts. from Federal and private market survey pesticide residues in food and the actual The following average PCT estimates data, which are reliable and have a valid levels of pesticide residues that have for abamectin were used in the chronic basis. The Agency is reasonably certain been measured in food. If EPA relies on dietary risk assessment for the following that the percentage of the food treated such information, EPA must require crops: Almond: 70%; apple: 10%; is not likely to be an underestimation. pursuant to FFDCA section 408(f)(1) apricot: 15%; avocado: 35%; bean, dry: As to Conditions b and c, regional 2.5%; blackberry: 56%; boysenberry: that data be provided 5 years after the consumption information and 56%; cantaloupe: 25%; celery: 45%; tolerance is established, modified, or consumption information for significant cherry: 5%; corn, sweet: 45%; cotton: left in effect, demonstrating that the subpopulations is taken into account 20%; cucumber: 5%; grape: 15%; levels in food are not above the levels through EPA’s computer-based model grapefruit: 70%; hazelnut: 2.5%; anticipated. For the present action, EPA for evaluating the exposure of honeydew: 20%; lemon: 40%; lettuce: will issue such data call-ins as are significant subpopulations including 20%; loganberry: 56%; nectarine: 20%; required by FFDCA section 408(b)(2)(E) several regional groups. Use of this onion, bulb: 2.5%; orange: 40%; peach: consumption information in EPA’s risk and authorized under FFDCA section 10%; pear: 70%; pecan: 1%; pepper: assessment process ensures that EPA’s 408(f)(1). Data will be required to be 15%; pistachio: 2.5%; plum/prune: exposure estimate does not understate submitted no later than 5 years from the 10%; potato: 5%; pumpkin: 5%; exposure for any significant date of issuance of these tolerances. raspberry: 56%; soybeans: 8%; spinach: subpopulation group and allows the Section 408(b)(2)(F) of FFDCA states 25%; squash: 5%; strawberry: 30%; Agency to be reasonably certain that no that the Agency may use data on the tangerine: 35%; tomato: 10%; walnuts: regional population is exposed to actual percent of food treated for 25%; and watermelons: 5%. residue levels higher than those assessing chronic dietary risk only if: The PCT values that were used to estimated by the Agency. Other than the • Condition a: The data used are refine the livestock commodities for the data available through national food reliable and provide a valid basis to chronic assessment were based on: consumption surveys, EPA does not show what percentage of the food Cotton (20%), soybean (8%), and sweet have available reliable information on derived from such crop is likely to corn (45%). The PCT for poultry and the regional consumption of food to contain the pesticide residue. hog commodities is based on the FHE • which abamectin may be applied in a Condition b: The exposure estimate PCT (5%) since the tolerances for FHE particular area. does not underestimate exposure for any uses result in residues considerably 2. Dietary exposure from drinking significant subpopulation group. higher than secondary residues from water. The Agency used screening level • Condition c: Data are available on hogs and poultry consuming treated water exposure models in the dietary pesticide use and food consumption in feed. exposure analysis and risk assessment a particular area, the exposure estimate In most cases, EPA uses available data for abamectin in drinking water. These does not understate exposure for the from United States Department of simulation models take into account population in such area. Agriculture/National Agricultural data on the physical, chemical, and fate/ In addition, the Agency must provide Statistics Service (USDA/NASS), transport characteristics of abamectin. for periodic evaluation of any estimates proprietary market surveys, and Further information regarding EPA used. To provide for the periodic California Department of Pesticide drinking water models used in pesticide evaluation of the estimate of PCT as Regulation (CalDPR) Pesticide Use exposure assessment can be found at required by FFDCA section 408(b)(2)(F), Reporting (PUR) for the chemical/crop http://www2.epa.gov/pesticide-science- EPA may require registrants to submit combination for the most recent 10 and-assessing-pesticide-risks/about- data on PCT. years. EPA uses an average PCT for water-exposure-models-used-pesticide. The following maximum PCT chronic dietary risk analysis and a Based on the Tier I Pesticide Root estimates for abamectin were used in maximum PCT for acute dietary risk Zone Model—Ground Water (PRZM–

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GW) and Tier I Screening Concentration aggregate assessment because they result this provision, EPA either retains the in Ground Water (SCI–GROW) models in the lowest MOEs: Adults (dermal) default value of 10X, or uses a different and the Tier II surface water from exposure to collegiate sports field additional safety factor when reliable concentration calculator (SWCC) turf; children 11 to less than 16 years data available to EPA support the choice computer model, the estimated drinking old (dermal) from exposure to golf of a different factor. water concentrations (EDWCs) of course turf; children 6 to less than 11 2. Prenatal and postnatal sensitivity. abamectin for acute exposures are years old (dermal) from exposure to golf An increase in qualitative susceptibility estimated to be 3.76 parts per billion course turf; and children 1 to less than was seen in the rabbit developmental (ppb) for surface water and 0.074 ppb 2 years old (dermal, inhalation, and toxicity study, where decreases in body for ground water, and for chronic incidental oral) from exposure to weight and food consumption were seen exposures are estimated to be 1.21 ppb carpets. in maternal animals at 2.0 mg/kg/day. In for surface water. Further information regarding EPA contrast, the fetal effects were much Modeled estimates of drinking water standard assumptions and generic more severe, consisting of cleft palate, concentrations were directly entered inputs for residential exposures may be clubbed foot, and death at 2.0 mg/kg/ into the dietary exposure model. For the found at http://www2.epa.gov/pesticide- day. The point of departure (0.25 mg/kg/ acute dietary risk assessment, the science-and-assessing-pesticide-risks/ day) selected from the dog studies is 8x Agency used a residue distribution file standard-operating-procedures- lower than the dose where rabbit fetal for water based upon the maximum residential-pesticide. effects were seen. Therefore, it is single application rate to ornamentals. 4. Cumulative effects from substances protective of fetal effects seen in the For the chronic dietary risk assessment, with a common mechanism of toxicity. rabbit developmental toxicity study. the water concentration of value 1.21 Section 408(b)(2)(D)(v) of FFDCA The rat reproduction toxicity and ppb was used to assess the contribution requires that, when considering whether developmental neurotoxicity studies to drinking water. to establish, modify, or revoke a demonstrated both qualitative and 3. From non-dietary exposure. The tolerance, the Agency consider quantitative susceptibility in the pups to term ‘‘residential exposure’’ is used in ‘‘available information’’ concerning the the effects of abamectin (decrease pup this document to refer to non- cumulative effects of a particular weights and increased postnatal pup occupational, non-dietary exposure pesticide’s residues and ‘‘other mortality). This observation is (e.g., for lawn and garden pest control, substances that have a common consistent with the finding that P-gp is indoor pest control, termiticides, and mechanism of toxicity.’’ not fully developed in rat pups until flea and tick control on pets). EPA has determined that abamectin postnatal day 28. Therefore, during the Abamectin is currently registered for and emamectin share characteristics to period from birth to postnatal day 28, the following uses that could result in support a testable hypothesis for a the rat pups are substantially more residential exposures: Golf course turf, common mechanism of action. susceptible to the effects of abamectin homeowner bait and bait station Following this determination, the than adult rats. However, in humans, products that include an outdoor Agency conducted a screening-level P-gp has been detected in the fetus at 22 granular bait formulation for use on fire cumulative risk assessment to determine weeks of pregnancy, and the human ant mounds, and several indoor ready- if cumulative exposures to these newborns have functioning P-gp. to-use baits of both dust and gel chemicals would pose a risk of concern. Therefore, human infants and children formulations. In addition, there is a This screening assessment indicates that are not expected to have enhanced pending action for use on professional that cumulative dietary and residential sensitivity as seen in rat pups. and collegiate sports fields that has been aggregate exposures for abamectin and 3. Conclusion. Currently, the toxicity incorporated into this review. emamectin are below the Agency’s endpoints and points of departure for all EPA assessed residential exposure levels of concern. No further cumulative exposure scenarios are selected from the using the following assumptions: For evaluation is necessary for abamectin subchronic and chronic oral toxicity residential handlers, both dermal and and emamectin. studies in the dogs. The points of inhalation short-term exposure is The Agency’s screening-level departure selected from the dog studies expected from the currently registered cumulative analysis can be found at are based on clear NOAELs and bait and bait station uses. Residential http://www.regulations.gov in the protective of all the adverse effects seen post-application exposure for adults and document titled ‘‘Avermectin in the studies conducted in human children (6 to <11 and 11 to <16) is Macrocyclic Lactones, Abamectin and relevant studies with rats, CD–1 mice, possible for the use of abamectin on golf Emamectin. Cumulative Screening Risk and rabbits. Therefore, EPA has courses and collegiate and professional Assessment’’ in docket ID number EPA– determined that the safety of infants and sports fields. Adults and children (6 to HQ–OPP–2018–0037. children would be adequately protected <11 and 11 to <16) performing physical if the FQPA SF were reduced to 1x. That D. Safety Factor for Infants and post-application activities may receive decision is based on the following Children dermal exposure to abamectin residues. findings: For the indoor liquid spray application 1. In general. Section 408(b)(2)(C) of i. The toxicity database for abamectin as a spot or crack and crevice treatment, FFDCA provides that EPA shall apply is complete. residential post-application exposures an additional tenfold (10X) margin of ii. The proposed mode of action are possible. However, for the outdoor safety for infants and children in the (MOA) is interaction with GABA liquid spray application, exposures are case of threshold effects to account for receptors leading to neurotoxicity. The expected to be negligible, and therefore, prenatal and postnatal toxicity and the findings of neurotoxic signs observed in were not quantitatively assessed. Adults completeness of the database on toxicity the abamectin database are consistent and children performing physical post- and exposure unless EPA determines with the proposed MOA. Signs of application activities on carpets and based on reliable data that a different neurotoxicity ranging from decreases in hard surfaces may receive exposure to margin of safety will be safe for infants foot splay reflex, mydriasis (i.e., abamectin residues. and children. This additional margin of excessive dilation of the pupil), The following residential post safety is commonly referred to as the curvature of the spine, decreased fore- application scenarios were used in the FQPA Safety Factor (SF). In applying and hind-limb grip strength, tip-toe gate,

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tremors, ataxia, or spastic movements of population group receiving the greatest abamectin is not expected to pose a the limbs are reported in various studies exposure. cancer risk to humans. with different durations of abamectin 2. Chronic risk. Using the exposure 6. Determination of safety. Based on exposure. In dogs, mydriasis was the assumptions described in this unit for these risk assessments, EPA concludes most common finding at doses as low as chronic exposure, EPA has concluded that there is a reasonable certainty that 0.5 mg/kg/day at one week of treatment. that chronic exposure to abamectin from no harm will result to the general No neuropathology was observed. food and water will utilize 13% of the population, or to infants and children Because the PODs used for assessing cPAD for children 1 to 2 years old, the from aggregate exposure to abamectin aggregate exposure to abamectin and the population group receiving the greatest residues. PODs for assessing cumulative exposure exposure. Based on the explanation in IV. Other Considerations for abamectin and emamectin are Unit III.C.3., regarding residential use protective of these neurotoxic effects in patterns, chronic residential exposure to A. Analytical Enforcement Methodology the U.S. population, as well as infants residues of abamectin is not expected. Adequate enforcement methods for and children, no additional data 3. Short-term risk. Short-term abamectin in plant and livestock concerning neurotoxicity is needed at aggregate exposure takes into account commodities are available in the this time to be protective of potential short-term residential exposure plus Pesticide Analytical Manual, Volume II neurotoxic effects. chronic exposure to food and water (PAM II). iii. As explained in Unit III.D.2 (considered to be a background B. International Residue Limits ‘‘Prenatal and postnatal sensitivity’’, the exposure level). enhanced susceptibility seen in the Abamectin is currently registered for In making its tolerance decisions, EPA rabbit developmental toxicity, the rat uses that could result in short-term seeks to harmonize U.S. tolerances with reproduction, and the rat developmental residential exposure, and the Agency international standards whenever neurotoxicity studies do not present a has determined that it is appropriate to possible, consistent with U.S. food risk concern. aggregate chronic exposure through food safety standards and agricultural iv. There are no residual uncertainties and water with short-term residential practices. EPA considers the identified in the exposure databases. exposures to abamectin. international maximum residue limits The chronic and acute dietary food Using the exposure assumptions (MRLs) established by the Codex exposure assessment are refined described in this unit for short-term Alimentarius Commission (Codex), as including use of anticipated residues, exposures, EPA has concluded the required by FFDCA section 408(b)(4). default processing factors, and percent The Codex Alimentarius is a joint crop treated; however, these refinements combined short-term food, water, and residential exposures result in aggregate United Nations Food and Agriculture are considered protective because field Organization/World Health trials are conducted to represent use MOEs of 790 for adults, 2,900 for children aged 11 to less than 16 years Organization food standards program, conditions leading to the maximum and it is recognized as an international residues in food when the product is old, 1,800 for children aged 6 to less than 11 years old, and 180 for children food safety standards-setting used in accordance with the label and organization in trade agreements to do not underestimate exposures. EPA 1–2 years old. Because EPA’s level of concern for abamectin is a MOE of 100 which the United States is a party. EPA made conservative (protective) may establish a tolerance that is assumptions in the ground and surface or below, these MOEs are not of concern. different from a Codex MRL; however, water modeling used to assess exposure FFDCA section 408(b)(4) requires that to abamectin in drinking water. EPA 4. Intermediate-term risk. Intermediate-term aggregate exposure EPA explain the reasons for departing used similarly conservative assumptions from the Codex level. to assess post-application exposure of takes into account intermediate-term residential exposure plus chronic The Codex has not established a MRL children. These assessments will not for abamectin on either tea or banana. underestimate the exposure and risks exposure to food and water (considered posed by abamectin. to be a background exposure level). C. Revisions to Petitioned-For Intermediate-term adverse effects Tolerances E. Aggregate Risks and Determination of were identified; however, abamectin is Safety The petitioner proposed a tolerance not registered for any use patterns that level of 0.002 ppm for residues in/on EPA determines whether acute and would result in intermediate-term banana. The tolerance is being chronic dietary pesticide exposures are residential exposure. Intermediate-term established at the level of the combined safe by comparing aggregate exposure risk is assessed based on intermediate- limit of quantitation (LOQs) for the estimates to the acute PAD (aPAD) and term residential exposure plus chronic residues of concern which is 0.006 ppm. chronic PAD (cPAD). For linear cancer dietary exposure. Because there is no The tolerance level for tea, dried is risks, EPA calculates the lifetime intermediate-term residential exposure being established at 1.0 ppm, which probability of acquiring cancer given the and chronic dietary exposure has alters the proposed tolerance of 1 ppm estimated aggregate exposure. Short-, already been assessed under the to adjust for significant figures and intermediate-, and chronic-term risks appropriately protective cPAD (which is commodity definition revision. are evaluated by comparing the at least as protective as the POD used to estimated aggregate food, water, and assess intermediate-term risk), no V. Conclusion residential exposure to the appropriate further assessment of intermediate-term Therefore, tolerances are established PODs to ensure that an adequate MOE risk is necessary, and EPA relies on the for residues of abamectin, in or on exists. chronic dietary risk assessment for banana at 0.006 ppm and tea, dried at 1. Acute risk. Using the exposure evaluating intermediate-term risk for 1.0 ppm. assumptions discussed in this unit for abamectin. acute exposure, the acute dietary 5. Aggregate cancer risk for U.S. VI. Statutory and Executive Order exposure from food and water to population. Based on the lack of Reviews abamectin will occupy 64% of the aPAD evidence of carcinogenicity in two This action establishes tolerances for children 1 to 2 years old, the adequate rodent carcinogenicity studies, under FFDCA section 408(d) in

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response to a petition submitted to the Mandates Reform Act (UMRA) (2 U.S.C. NATIONAL FOUNDATION ON THE Agency. The Office of Management and 1501 et seq.). ARTS AND THE HUMANITIES Budget (OMB) has exempted these types This action does not involve any National Endowment for the Arts of actions from review under Executive technical standards that would require Order 12866, entitled ‘‘Regulatory Agency consideration of voluntary 45 CFR Part 1148 Planning and Review’’ (58 FR 51735, consensus standards pursuant to section October 4, 1993). Because this action 12(d) of the National Technology RIN 3135–AA27 has been exempted from review under Transfer and Advancement Act Executive Order 12866, this action is (NTTAA) (15 U.S.C. 272 note). Procedures for Disclosure of Records not subject to Executive Order 13211, Under the Freedom of Information Act entitled ‘‘Actions Concerning VII. Congressional Review Act Regulations That Significantly Affect AGENCY: National Endowment for the Energy Supply, Distribution, or Use’’ (66 Pursuant to the Congressional Review Arts, National Foundation on the Arts FR 28355, May 22, 2001) or Executive Act (5 U.S.C. 801 et seq.), EPA will and the Humanities. Order 13045, entitled ‘‘Protection of submit a report containing this rule and ACTION: Final regulations. Children from Environmental Health other required information to the U.S. SUMMARY: This rule amends the National Risks and Safety Risks’’ (62 FR 19885, Senate, the U.S. House of Endowment for the Arts’ (Arts April 23, 1997), nor is it considered a Representatives, and the Comptroller Endowment) regulations implementing regulatory action under Executive Order General of the United States prior to the Freedom of Information Act (FOIA). 13771, entitled ‘‘Reducing Regulations publication of the rule in the Federal The new regulations are updated to and Controlling Regulatory Costs’’ (82 Register. This action is not a ‘‘major FR 9339, February 3, 2017). This action rule’’ as defined by 5 U.S.C. 804(2). reflect statutory changes to FOIA, the current organizational structure of the does not contain any information List of Subjects in 40 CFR Part 180 collections subject to OMB approval Arts Endowment, and current Arts Endowment policies and practices with under the Paperwork Reduction Act Environmental protection, respect to FOIA. Finally, the regulations (PRA) (44 U.S.C. 3501 et seq.), nor does Administrative practice and procedure, use current cost figures in calculating it require any special considerations Agricultural commodities, Pesticides and charging fees. under Executive Order 12898, entitled and pests, Reporting and recordkeeping ‘‘Federal Actions to Address requirements. DATES: These regulations are effective Environmental Justice in Minority February 27, 2019. Dated: February 8, 2019. Populations and Low-Income FOR FURTHER INFORMATION CONTACT: Populations’’ (59 FR 7629, February 16, Michael Goodis, Daniel Fishman, Attorney Advisor, 1994). Director, Registration Division, Office of National Endowment for the Arts, 400 Since tolerances and exemptions that Pesticide Programs. 7th St. SW, Washington, DC 20506, are established on the basis of a petition Telephone: 202–682–5514. Therefore, 40 CFR chapter I is under FFDCA section 408(d), such as SUPPLEMENTARY INFORMATION: the tolerance in this final rule, do not amended as follows: 1. Background require the issuance of a proposed rule, PART 180—[AMENDED] the requirements of the Regulatory On June 9, 2017 the Arts Endowment published a notice of proposed Flexibility Act (RFA) (5 U.S.C. 601 et ■ seq.), do not apply. 1. The authority citation for part 180 rulemaking (NPRM) for certain This action directly regulates growers, continues to read as follows: amendments to its FOIA Regulations (82 food processors, food handlers, and food Authority: 21 U.S.C. 321(q), 346a and 371. FR 26763). In the preamble of the retailers, not States or tribes, nor does NPRM, the Arts Endowment discussed ■ this action alter the relationships or 2. In § 180.449, add alphabetically the on pages 26763 and 26764 the major distribution of power and entries ‘‘Banana’’ and ‘‘Tea, dried’’ to changes proposed in that document to responsibilities established by Congress the table in paragraph (a) to read as the FOIA regulations. These included in the preemption provisions of FFDCA follows: the following: • section 408(n)(4). As such, the Agency § 180.449 Avermectin B1 and its delta-8,9- The addition of Arts Endowment- has determined that this action will not isomer; tolerances for residues. specific FOIA regulations at 45 CFR part have a substantial direct effect on States 1148. or tribal governments, on the (a) * * * • The requirements of the FOIA relationship between the national Improvement Act of 2016 (Pub. L. 114– government and the States or tribal Commodity Parts per 185). governments, or on the distribution of million Due to delays in issuing the final power and responsibilities among the regulation, on November 6, 2018 the various levels of government or between ***** Arts Endowment reopened comments the Federal Government and Indian Banana 1 ...... 0.006 on its draft for an additional 30 days to tribes. Thus, the Agency has determined ensure public input on the proposed that Executive Order 13132, entitled ***** rule (83 FR 55504). ‘‘Federalism’’ (64 FR 43255, August 10, Tea, dried 1 ...... 1.0 Public Comment: Edits made during 1999) and Executive Order 13175, the first comment period were entitled ‘‘Consultation and Coordination ***** considered and commented on by the with Indian Tribal Governments’’ (65 FR agency in the NPRM announcing the 1 There are no U.S. registrations for use of second comment period. Those changes 67249, November 9, 2000) do not apply abamectin on banana or tea. to this action. In addition, this action accepted by the agency were noted in does not impose any enforceable duty or * * * * * the second NPRM. No comments were contain any unfunded mandate as [FR Doc. 2019–03426 Filed 2–26–19; 8:45 am] received during the second comment described under Title II of the Unfunded BILLING CODE 6560–50–P period.

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Technical and Other Minor Changes: implications within the meaning of E.O. Executive Order 13771 These final regulations include 13132. Executive Order 13771 § 5 requires technical and other minor changes, Civil Justice Reform (Executive Order that agencies, in most circumstances, mainly to address incorrect or outdated 12988) remove or rescind two regulations for phone numbers or website addresses every regulation promulgated unless that appeared in the second NPRM. In This final rule meets the applicable they request and are specifically addition, the agency’s acronym (NEA) standards set forth in section 3(a) and exempted from that order’s has been removed and replaced with 3(b)(2) of E.O. 12988. Specifically, this requirements by the Director of the Arts Endowment where applicable. final rule is written in clear language Office of Management and Budget. The Arts Endowment now publishes designed to help reduce litigation. This final rule is not subject to the its final regulations. Indian Tribal Governments (Executive requirements of Executive Order 13771 2. Compliance Order 13175) because this final rule is not significant under Executive Order 12866. Regulatory Planning and Review Under the criteria in E.O. 13175, we Furthermore, the Arts Endowment has (Executive Order 12866) have evaluated this final rule and requested and has received an Executive Order (E.O.) 12866 determined that it would have no exemption from the Director of the established a process for review of rules potential effects on federally recognized Office of Management and Budget from by the Office of Information and Indian Tribes. the requirement that the agency rescind Regulatory Affairs, which is within the two regulations for every regulation it Takings (Executive Order 12630) Office of Management and Budget promulgates. (OMB). Only ‘‘significant’’ proposed and Under the criteria in E.O. 12630, this List of Subjects in 45 CFR Part 1148 final rules are subject to review under final rule does not have significant this Executive Order. ‘‘Significant,’’ as takings implications. Therefore, a Administrative practice and used in E.O. 12866, means takings implication assessment is not procedure, Archives and records, ‘‘economically significant.’’ It refers to required. Freedom of information. rules with (1) an impact on the economy ■ For the reasons stated in the preamble, of $100 million; or that (2) were Regulatory Flexibility Act of 1980 (5 the Arts Endowment amends 45 CFR inconsistent or interfered with an action U.S.C. 605(b)) chapter XI, subchapter B, by adding part taken or planned by another agency; (3) This final rule will not have a 1148 to read as follows: materially altered the budgetary impact significant adverse impact on a of entitlements, grants, user fees, or loan PART 1148—PROCEDURES FOR substantial number of small entities, DISCLOSURE OF RECORDS UNDER programs; or (4) raised novel legal or including small businesses, small policy issues. THE FREEDOM OF INFORMATION ACT governmental jurisdictions, or certain (FOIA) This final rule would not be a small not-for-profit organizations. significant policy change and OMB has Sec. not reviewed this rule under E.O. 12866. Unfunded Mandates Act of 1995 1148.1 What is the purpose and scope of We have made the assessments required (Section 202, Pub. L. 104–4) these regulations? by E.O. 12866 and determined that this 1148.2 How will the Arts Endowment make This final rule does not contain a final rule: (1) Will not have an effect of proactive disclosures? Federal mandate that will result in the $100 million or more on the economy; 1148.3 How can I make a FOIA request? expenditure by State, local, and tribal (2) will not adversely affect in a material 1148.4 How will the Arts Endowment governments, in the aggregate, or by the way the economy, productivity, respond to my request? private sector of $100 million or more 1148.5 When will the Arts Endowment competition, jobs, the environment, in any one year. respond to my request? public health or safety, or State, local, 1148.6 How will I receive responses to my or Tribal governments or communities; National Environmental Policy Act of requests? (3) will not create a serious 1969 (5 U.S.C. 804) 1148.7 How does the Arts Endowment inconsistency or otherwise interfere handle confidential commercial with an action taken or planned by The final rule will not have information? another agency; (4) does not alter the significant effect on the human 1148.8 How can I appeal a denial of my budgetary effects of entitlements, grants, environment. request? 1148.9 What are the Arts Endowment user fees, or loan programs or the rights Small Business Regulatory Enforcement or obligations of their recipients; and (5) policies regarding preservation of Fairness Act of 1996 (Sec. 804, Pub. L. records? does not raise novel legal or policy 104–121) 1148.10 How will fees be charged? issues. 1148.11 What other rules apply to Arts This final rule would not be a major Endowment FOIA requests? Federalism (Executive Order 13132) rule as defined in section 804 of the This final rule does not have Small Business Regulatory Enforcement Authority: 5 U.S.C. 552; 28 U.S.C. 1746; 31 U.S.C. 3717; E.O. 12600, 52 FR 23781, 3 CFR, federalism implications, as set forth in Fairness Act of 1996. This final rule will 1987 Comp. E.O. 13132. As used in this E.O., not result in an annual effect on the federalism implications mean economy of $100,000,000 or more, a § 1148.1 What is the purpose and scope of ‘‘substantial direct effects on the States, major increase in costs or prices, these regulations? on the relationship between the national significant adverse effects on This part contains the rules that the government and the States, or on the competition, employment, investment, Arts Endowment follows in processing distribution of power and productivity, innovation, or on the requests for records under the Freedom responsibilities among the various ability of United States-based of Information Act (FOIA), 5 U.S.C. 552. levels of government.’’ The Arts companies to compete with foreign These rules should be read in Endowment has determined that this based companies in domestic and conjunction with the text of the FOIA final rule will not have federalism export markets. and the Uniform Freedom of

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Information Fee Schedule and (c) Description of records sought. Chairperson or his/her designee is Guidelines published by the Office of Requesters must describe the records authorized to grant or to deny any Management and Budget (OMB sought in sufficient detail to enable Arts requests for records that are maintained Guidelines). Requests made by Endowment personnel to locate them by the Arts Endowment. individuals for records about with a reasonable amount of effort. To (c) Consultation and referral. When themselves under the Privacy Act of the extent possible, requesters should reviewing records located by the Arts 1974, 5 U.S.C. 552a, are processed in include specific information that may Endowment in response to a request, the accordance with the Arts Endowment’s help the Arts Endowment identify the Arts Endowment will determine Privacy Act regulations as well as under requested records, such as the date, title whether another agency of the Federal this part. or name, author, recipient, subject Government is better able to determine matter of the record, case number, file whether the record is exempt from § 1148.2 How will the Arts Endowment designation, or reference number. Before disclosure under the FOIA. As to any make proactive disclosures? submitting their requests, requesters such record, the Arts Endowment will Records that the Arts Endowment may contact the Arts Endowment’s proceed in one of the following ways: makes available for public inspection in designated FOIA contact or FOIA Public (1) Consultation. When records an electronic format may be accessed Liaison to discuss the records they seek originated with the Arts Endowment, through the Arts Endowment’s open and to receive assistance in describing but contain within them information of government page, available at https:// the records. Contact information for the interest to another agency or other www.arts.gov/open. The Arts Arts Endowment’s designated FOIA Federal Government office, the Arts Endowment will determine which of its contact and FOIA Public Liaison is Endowment will typically consult with records should be made publicly available on the Arts Endowment’s that other entity prior to making a available, identify additional records of FOIA website (https://www.arts.gov/ release determination. interest to the public that are foia-contacts), or can be obtained by (2) Referral. (i) When the Arts appropriate for public disclosure, and calling (202) 682–54184. If after Endowment believes that a different post and index such records. The Arts receiving a request, the Arts Endowment agency is best able to determine whether Endowment will ensure that its website determines that it does not reasonably to disclose the record, the Arts of posted records and indices is describe the records sought, the Arts Endowment typically should refer the reviewed and updated on an ongoing Endowment will inform the requester responsibility for responding to the basis. what additional information is needed request regarding that record to that agency. Ordinarily, the agency that § 1148.3 How can I make a FOIA request? or why the request is otherwise insufficient. Requesters who are originated the record is presumed to be (a) General information. To make a attempting to reformulate or modify the best agency to make the disclosure request for records, a requester should such a request may discuss their request determination. However, if the Arts write directly to the Arts Endowment at with the Arts Endowment’s designated Endowment and the originating agency National Endowment for the Arts, Office FOIA contact or FOIA Public Liaison. If jointly agree that the Arts Endowment is of General Counsel, 400 7th St. SW, a request does not reasonably describe in the best position to respond regarding Second Floor, Washington, DC 20506. the records sought, the Arts the record, then the record may be Requests may also be sent by facsimile Endowment’s response to the request handled as a consultation. to the General Counsel’s office at (202) may be delayed. (ii) Whenever the Arts Endowment 682–5572, or by email to [email protected]. (d) Format specifications. Requests refers any part of the responsibility for (b) Identity requirements. Depending may specify the preferred form or format responding to a request to another on the type of document you ask for, the (including electronic formats) for the agency, it will document the referral, Arts Endowment may require records you seek. The Arts Endowment maintain a copy of the record that it verification of your identity or the will accommodate your request if the refers, and notify the requester of the identity of a third party. record is readily reproducible in that referral, informing the requester of the (1) A requester who is making a form or format. name(s) of the agency to which the request for records about himself or (e) Contact information requirements. record was referred, including that herself must comply with the Arts Requesters must provide contact agency’s FOIA contact information. Endowment’s verification requirements information, such as their phone (d) Timing of responses to as set forth in § 1159.9 of this chapter. number, email address, and/or mailing consultations and referrals. The Arts (2) Where a request for records address, to assist the Arts Endowment Endowment will consider a FOIA pertains to another individual, a in communicating with them and request to be a perfected FOIA request requester may receive greater access by providing released records. if it complies with this section. All submitting either a notarized consultations and referrals received by authorization signed by that individual § 1148.4 How will the Arts Endowment the Arts Endowment will be handled in respond to my request? or a declaration made in compliance the order of the date that the first agency with the requirements set forth in 28 (a) In general. In determining which received the perfected FOIA request. U.S.C. 1746 by that individual records are responsive to a request, the (e) Agreements regarding authorizing disclosure of the records to Arts Endowment ordinarily will include consultations and referrals. The Arts the requester, or by submitting proof only records in its possession as of the Endowment may establish agreements that the individual is deceased (e.g., a date that it begins its search. If any other with other agencies to eliminate the copy of a death certificate or an date is used, the Arts Endowment will need for consultations or referrals with obituary). As an exercise of inform the requester of that date. A respect to particular types of records. administrative discretion, the Arts record that is excluded from the Endowment may require a requester to requirements of the FOIA pursuant to 5 § 1148.5 When will the Arts Endowment supply additional information if U.S.C. 552(c), is not considered respond to my request? necessary in order to verify that a responsive to a request. (a) In general. The Arts Endowment particular individual has consented to (b) Authority to grant or deny ordinarily will respond to requests disclosure. requests. The Arts Endowment according to their order of receipt.

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(b) Multitrack processing. The Arts basis whenever it is determined that access to the internet electronically, Endowment will designate a specific they involve: such as email or web portal. track for requests that are granted (i) Circumstances in which the lack of (b) Acknowledgments of requests. The expedited processing, in accordance expedited processing could reasonably Arts Endowment will acknowledge the with the standards set forth in be expected to pose an imminent threat request in writing and assign it an paragraph (e) of this section. The Arts to the life or physical safety of an individualized tracking number if it will Endowment may also designate individual; or take longer than 10 working days to additional processing tracks that (ii) An urgency to inform the public process. The Arts Endowment will distinguish between simple and more about an actual or alleged Federal include in the acknowledgment a brief complex requests based on the Government activity, if made by a description of the records sought to estimated amount of work or time person who is primarily engaged in allow requesters to more easily keep needed to process the request. Among disseminating information. track of their requests. the factors the Arts Endowment may (2) A request for expedited processing (c) Estimated dates of completion and consider are the number of records may be made at any time. Requests interim responses. Upon request, the requested, the number of pages involved based on paragraphs (e)(1)(i) and (ii) of Arts Endowment will provide an in processing the request and the need this section must be submitted to the estimated date by which the Arts for consultations or referrals. The Arts Arts Endowment’s Office of General Endowment expects to provide a Endowment will advise requesters of Counsel. When making a request for response to the requester. If a request the track into which their request falls expedited processing of an involves a voluminous amount of and, when appropriate, will offer the administrative appeal, the request material, or searches in multiple requesters an opportunity to narrow or should be submitted to the Arts locations, the Arts Endowment may modify their request so that it can be Endowment’s FOIA Appeals Office per provide interim responses, releasing the placed in a different processing track. § 1148.8(a). records on a rolling basis. (c) Unusual circumstances. Whenever (3) A requester who seeks expedited (d) Grants of requests. Once the Arts the Arts Endowment cannot meet the processing must submit a statement, Endowment determines it will grant a statutory time limit for processing a certified to be true and correct, request in full or in part, it will notify request because of ‘‘unusual explaining in detail the basis for making the requester in writing. The Arts circumstances,’’ as defined in the FOIA, the request for expedited processing. Endowment will also inform the and the Arts Endowment extends the For example, under paragraph (e)(1)(ii) requester of any fees charged under time limit on that basis, the Arts of this section, a requester who is not a § 1148.10 and will disclose the Endowment will, before expiration of full-time member of the news media requested records to the requester the 20 business day period to respond, must establish that the requester is a promptly upon payment of any notify the requester in writing of the person whose primary professional applicable fees. The Arts Endowment unusual circumstances involved and of activity or occupation is information will inform the requester of the the date by which the Arts Endowment dissemination, though it need not be the availability of its FOIA Public Liaison to estimates processing of the request will requester’s sole occupation. Such a offer assistance. be completed. Where the extension requester also must establish a (e) Adverse determinations of exceeds 10 working days, the Arts particular urgency to inform the public requests. If the Arts Endowment makes Endowment will, as described by the about the government activity involved an adverse determination denying a FOIA, provide the requester with an in the request—one that extends beyond request in any respect, it will notify the opportunity to modify the request or the public’s right to know about requester of that determination in arrange an alternative time period for government activity generally. The writing. Adverse determinations, or processing the original or modified existence of numerous articles denials of requests, include decisions request. The Arts Endowment will make published on a given subject can be that: the requested record is exempt, in available its designated FOIA contact or helpful in establishing the requirement whole or in part; the request does not FOIA Public Liaison for this purpose. that there be an ‘‘urgency to inform’’ the reasonably describe the records sought; The Arts Endowment will also alert public on the topic. As a matter of the information requested is not a requesters to the availability of the administrative discretion, the Arts record subject to the FOIA; the Office of Government Information Endowment may waive the formal requested record does not exist, cannot Services (OGIS) to provide dispute certification requirement. be located, or has been destroyed; or the resolution services. (4) The Arts Endowment will notify requested record is not readily (d) Aggregating requests. To satisfy the requester within 10 calendar days of reproducible in the form or format unusual circumstances under the FOIA, the receipt of a request for expedited sought by the requester. Adverse the Arts Endowment may aggregate processing of its decision whether to determinations also include denials requests in cases where it reasonably grant or deny expedited processing. If involving fees or fee waiver matters or appears that multiple requests, expedited processing is granted, the denials of requests for expedited submitted either by a requester or by a request must be given priority, placed in processing. group of requesters acting in concert, the processing track for expedited (f) Content of denial. The denial will constitute a single request that would requests, and must be processed as soon be signed by the Arts Endowment’s otherwise involve unusual as practicable. If a request for expedited General Counsel or designee and will circumstances. The Arts Endowment processing is denied, the Arts include: will not aggregate multiple requests that Endowment will act on any appeal of (1) The name and title or position of involve unrelated matters. that decision expeditiously. the person responsible for the denial; (e) Expedited processing. Consistent (2) A brief statement of the reasons for with 5 U.S.C. 552(a)(6)(E)(i), the Arts § 1148.6 How will I receive responses to the denial, including any FOIA Endowment may grant expedited my requests? exemption applied by the Arts processing under certain circumstances: (a) In general. The Arts Endowment, Endowment in denying the request; (1) The Arts Endowment will process to the extent practicable, will (3) An estimate of the volume of any requests and appeals on an expedited communicate with requesters having records or information withheld, such

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as the number of pages or some other unless the submitter requests and object to disclosure of information reasonable form of estimation, although provides justification for a longer under FOIA. such an estimate is not required if the designation period. (1) The Arts Endowment will specify volume is otherwise indicated by (c) When notice to submitters is a reasonable time period within which deletions marked on records that are required. The following rules and the submitter must respond to the notice disclosed in part or if providing an procedures determine when the Arts referenced in paragraph (c) of this estimate would harm an interest Endowment will provide written notice section. protected by an applicable exemption; to submitters of confidential commercial (4) A statement that: information that their information may (2) If a submitter has any objections to (i) The denial may be appealed under be disclosed under FOIA. disclosure, it must provide the Arts § 1148.8(a); (1) The Arts Endowment will Endowment a detailed written statement (ii) That the requester has 90 days to promptly provide written notice to the that specifies all grounds for file an appeal in order for it to be submitter of confidential commercial withholding the particular information considered timely, and that the Arts information whenever records under any exemption of the FOIA. In Endowment will not process or consider containing such information are order to rely on Exemption 4 as basis for appeals that were not filed within 90 requested under the FOIA if the Arts nondisclosure, the submitter must days of the receipt of an adverse Endowment determines that it may be explain why the information constitutes determination; and required to disclose the records, a trade secret or commercial or financial (iii) A description of the appeal provided: information that is confidential. requirements; and (i) The requested information has (3) A submitter who fails to respond (5) A statement notifying the requester been designated in good faith by the within the time period specified in of the assistance available from the Arts submitter as information considered paragraph (e)(1) of this section will be Endowment’s FOIA Public Liaison and protected from disclosure under considered to have no objection to the dispute resolution services offered Exemption 4; or disclosure of the information. The Arts by OGIS. (ii) The Arts Endowment has a reason Endowment is not required to consider (g) Use of record exclusions. In the to believe that the requested information any information received after the date event that the Arts Endowment may be protected from disclosure under of any disclosure decision. Any identifies records that may be subject to Exemption 4, but has not yet information provided by a submitter exclusion from the requirements of the determined whether the information is under this part may itself be subject to FOIA pursuant to 5 U.S.C. 552(c), the protected from disclosure. disclosure under the FOIA. Arts Endowment will confer with (2) The notice will either describe the (f) Analysis of objections. The Arts Department of Justice, Office of commercial information requested or Endowment must consider a submitter’s Information Policy (OIP), to obtain include a copy of the requested records objections and specific grounds for approval to apply the exclusion. The or portions of records containing the nondisclosure in deciding whether to Arts Endowment, when invoking an information. In cases involving a disclose the requested information. exclusion will maintain an voluminous number of submitters, the (g) Notice of intent to disclose. administrative record of the process of Arts Endowment may post or publish a Whenever the Arts Endowment decides invocation and approval of the notice in a place or manner reasonably to disclose information over the exclusion by OIP. likely to inform the submitters of the objection of a submitter, the Arts proposed disclosure, instead of sending § 1148.7 How does the Arts Endowment Endowment will provide the submitter individual notifications. handle confidential commercial written notice, which will include: information? (d) Exceptions to submitter notice (a) Definitions. The following requirements. The notice requirements (1) A statement of the reasons why definitions apply to this section. of this section do not apply if: each of the submitter’s disclosure (1) Confidential commercial (1) The Arts Endowment determines objections was not sustained; information means commercial or that the information is exempt under the (2) A description of the information to financial information obtained by the FOIA, and therefore will not be be disclosed or copies of the records as Arts Endowment from a submitter that disclosed; the Arts Endowment intends to release may be protected from disclosure under (2) The information has been lawfully them; and Exemption 4 of the FOIA, 5 U.S.C. published or has been officially made (3) A specified disclosure date, which 552(b)(4). available to the public; will be a reasonable time after the (2) Submitter means any person or (3) Disclosure of the information is notice. entity, including a corporation, State, or required by a statute other than the foreign government, but not including FOIA or by a regulation issued in (h) Notice of FOIA lawsuit. Whenever another Federal Government entity, that accordance with the requirements of a requester files a lawsuit seeking to provides confidential commercial Executive Order 12600 of June 23, 1987; compel the disclosure of confidential information, either directly or indirectly or commercial information, the Arts to the Federal Government. (4) The designation made by the Endowment will promptly notify the (b) Designation of confidential submitter under paragraph (b) of this submitter. commercial information. A submitter of section appears obviously frivolous. In (i) Requester notification. The Arts confidential commercial information such case, the Arts Endowment will Endowment will notify the requester must use good faith efforts to designate give the submitter written notice of any whenever it provides the submitter with by appropriate markings, at the time of final decision to disclose the notice and an opportunity to object to submission, any portion of its information within a reasonable number disclosure; whenever it notifies the submission that it considers to be of days prior to a specified disclosure submitter of its intent to disclose the protected from disclosure under date. requested information; and whenever a Exemption 4. These designations expire (e) Opportunity to object to disclosure. submitter files a lawsuit to prevent the 10 years after the date of the submission A submitter will have the opportunity to disclosure of the information.

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§ 1148.8 How can I appeal a denial of my Arts Endowment agrees to participate in States, or by another method as request? the dispute resolution services provided determined by the Arts Endowment. (a) Requirements for making an by OGIS, it will actively engage as a (b) Definitions. For purposes of this appeal. A requester may appeal any partner to the process in an attempt to section: adverse determinations to the Arts resolve the dispute. (1) Commercial use request is a Endowment’s office designated to (e) When appeal is required. Before request that asks for information for a receive FOIA appeals (‘‘FOIA Appeals seeking review by a court of the Arts use or a purpose that furthers a Office’’). Examples of adverse Endowment’s adverse determination, a commercial, trade, or profit interest, determinations are provided in requester generally must first submit a which can include furthering those § 1148.6(e). Requesters can submit timely administrative appeal. interests through litigation. The Arts appeals by mail by writing to Arts (f) Timing of appeal. After receiving Endowment’s decision to place a Endowment Chairman, c/o Office of the Arts Endowment’s adverse requester in the commercial use General Counsel, National Endowment determination, a requester has 90 category will be made on a case-by-case for the Arts, 400 7th Street SW, calendar days to file an appeal in order basis based on the requester’s intended use of the information. The Arts Washington, DC 20506, or online in for it to be considered timely. The Arts Endowment will notify requesters of accordance with instructions on the Endowment will not process or consider their placement in this category. Arts Endowment’s website (https:// appeals that were not filed within 90 www.arts.gov/freedom-information-act- (2) Direct costs are those expenses that calendar days of the date of an adverse the Arts Endowment incurs in searching guide). The requester must make the determination. appeal in writing and to be considered for and duplicating (and, in the case of timely it must be postmarked, or in the § 1148.9 What are the Arts Endowment commercial use requests, reviewing) case of electronic submissions, policies regarding preservation of records? records in order to respond to a FOIA transmitted, within 90 calendar days The Arts Endowment will preserve all request. For example, direct costs after the date of the adverse correspondence pertaining to the include the salary of the employee determination. The appeal should requests that it receives under this part, performing the work (i.e., the basic rate clearly identify the Arts Endowment’s as well as copies of all requested of pay for the employee, plus 16 percent determination that is being appealed records, until disposition or destruction of that rate to cover benefits) and the cost of operating computers and other and the assigned request number. To is authorized pursuant to title 44 of the electronic equipment, such as facilitate handling, the requester should United States Code or the General photocopiers and scanners. Direct costs mark both the appeal letter and Records Schedule 4.2 of the National do not include overhead expenses such envelope, or subject line of the Archives and Records Administration. as the costs of space, and of heating or electronic transmission, ‘‘Freedom of The Arts Endowment will not dispose of lighting a facility. Information Act Appeal.’’ or destroy records while they are the (b) Adjudication of appeals. (1) The (3) Duplication is reproducing a copy subject of a pending request, appeal, or of a record, or of the information Arts Endowment’s Chairperson or his/ lawsuit under the FOIA. her designee will act on behalf of the contained in it, necessary to respond to Arts Endowment’s Chief FOIA Officer § 1148.10 How will fees be charged? a FOIA request. Copies can take the form of paper, audiovisual materials, or on all appeals under this section. (a) In general. (1) The Arts (2) An appeal ordinarily will not be electronic records, among others. Endowment will charge for processing adjudicated if the request becomes a (4) Educational institution is any requests under the FOIA in accordance matter of FOIA litigation. school that operates a program of (c) Decisions on appeals. The Arts with the provisions of this section and scholarly research. A requester in this Endowment will provide its decision on with the OMB Guidelines. For purposes fee category must show that the request an appeal in writing. A decision that of assessing fees, the FOIA establishes is made in connection with his or her upholds the Arts Endowment’s three categories of requesters: role at the educational institution. The determination in whole or in part will (i) Commercial use requesters; Arts Endowment may seek verification contain a statement that identifies the (ii) Non-commercial scientific or from the requester that the request is in reasons for its decision, including any educational institutions or news media furtherance of scholarly research and FOIA exemptions applied. The decision requesters; and the Arts Endowment will advise will provide the requester with (ii) All other requesters. requesters of their placement in this notification of the statutory right to file (2) Different fees are assessed category. a lawsuit and will inform the requester depending on the category. Requesters (i) Example 1. A request from a professor of the dispute resolution services may seek a fee waiver. The Arts of architecture at a university for records offered by the Office of Government Endowment will consider requests for relating to Arts Endowment grants related to Information Services (OGIS) of the fee waiver in accordance with the architecture, written on letterhead of the National Archives and Records requirements in paragraph (k) of this Department of Geology, would be presumed Administration as a non-exclusive section. To resolve any fee issues that to be from an educational institution. arise under this section, the Arts (ii) Example 2. A request from the same alternative to litigation. If the Arts professor of architecture seeking translation Endowment’s decision is remanded or Endowment may contact a requester for grant information from the Arts Endowment modified on appeal, the Arts additional information. The Arts in furtherance of a murder mystery he is Endowment will notify the requester of Endowment will ensure that searches, writing would not be presumed to be an that determination in writing. The Arts review, and duplication are conducted institutional request, regardless of whether it Endowment will then further process in the most efficient and the least was written on institutional stationery. the request in accordance with that expensive manner. The Arts (iii) Example 3. A student who makes a Endowment ordinarily will collect all request in furtherance of their coursework or appeal determination and will respond other school-sponsored activities and directly to the requester. applicable fees before sending copies of provides a copy of a course syllabus or other (d) Engaging in dispute resolution records to a requester. Requesters must reasonable documentation to indicate the services provided by OGIS. Dispute pay fees by check or money order made research purpose for the request, would resolution is a voluntary process. If the payable to the Treasury of the United qualify as part of this fee category.

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(5) Noncommercial scientific policy issues regarding the application Transactional Billing Rate Schedule institution is an institution that is not of exemptions. established by NARA. operated on a ‘‘commercial’’ basis, as (8) Search is the process of looking for (2) Duplication. The Arts Endowment defined in paragraph (b)(1) of this and retrieving records or information will charge duplication fees to all section and that is operated solely for responsive to a request. Search time requesters, subject to the restrictions of the purpose of conducting scientific includes page-by-page or line-by-line paragraph (d) of this section. The Arts research the results of which are not identification of information within Endowment will honor a requester’s intended to promote any particular records and the reasonable efforts preference for receiving a record in a product or industry. A requester in this expended to locate and retrieve particular form or format where the Arts category must show that the request is information from electronic records. Endowment can readily reproduce it in authorized by and is made under the (c) Charging fees. In responding to the form or format requested. Where auspices of a qualifying institution and FOIA requests, the Arts Endowment photocopies are supplied, the Arts that the records are sought to further will charge the following fees unless a Endowment will provide one copy per scientific research and are not for a waiver or reduction of fees has been request at the cost of $.10 per single commercial use. The Arts Endowment granted under paragraph (k) of this sided page, and $.20 per double sided will advise requesters of their placement section. Because the fee amounts page. For copies of records produced on in this category. provided in paragraphs (c)(1) through tapes, disks, or other media, the Arts (6) Representative of the news media (3) of this section already account for Endowment will charge the direct costs is any person or entity that gathers the direct costs associated with a given of producing the copy, including information of potential interest to a fee type, the Arts Endowment will not operator time. Where paper documents segment of the public, uses its editorial add any additional costs to charges must be scanned in order to comply skills to turn the raw materials into a calculated under this section. with a requester’s preference to receive distinct work, and distributes that work (1) Searches. The following fee the records in an electronic format, the to an audience. The term ‘‘news’’ means policies apply to searches: requester must also pay the direct costs information that is about current events (i) Requests made by educational associated with scanning those or that would be of current interest to institutions, noncommercial scientific materials. For other forms of the public. Examples of news media institutions, or representatives of the duplication, the Arts Endowment will entities include television or radio news media are not subject to search charge the direct costs. stations that broadcast ‘‘news’’ to the fees. The Arts Endowment will charge (3) Review. The Arts Endowment will public at large and publishers of search fees for all other requesters, charge review fees to requesters who periodicals that disseminate ‘‘news’’ subject to the restrictions of paragraph make commercial use requests. Review and make their products available (d) of this section. The Arts Endowment fees will be assessed in connection with through a variety of means to the may properly charge for time spent the initial review of the record, i.e., the general public, including news searching even if the Arts Endowment review conducted by the Arts organizations that disseminate solely on does not locate any responsive records Endowment to determine whether an the internet. A request for records or if the Arts Endowment determines exemption applies to a particular record supporting the news-dissemination that the records are entirely exempt or portion of a record. No charge will be function of the requester will not be from disclosure. made for review at the administrative considered to be for a commercial use. (ii) For manual searches, the fee appeal stage of exemptions applied at ‘‘Freelance’’ journalists who charged will be the salary rate or rates the initial review stage. However, if a demonstrate a solid basis for expecting of the employee or employees particular exemption is deemed to no publication through a news media entity conducting the search. For computer longer apply, any costs associated with will be considered as a representative of searches, the fee charged will be the the Arts Endowment’s re-review of the the news media. A publishing contract actual direct cost of providing the records in order to consider the use of would provide the clearest evidence service, including the salary rate or rates other exemptions may be assessed as that publication is expected; however, of the operator(s) or programmer(s) review fees. Review fees will be charged the Arts Endowment may also consider conducting the search. The salary rate is at the same rates as those charged for a a requester’s past publication record in calculated as the particular employee’s search under paragraph (c)(1)(ii) of this making this determination. The Arts basic pay plus 16.1 percent. The Arts section. Endowment will advise requesters of Endowment may charge fees even if the (d) Restrictions on charging fees. The their placement in this category. documents are determined to be exempt Arts Endowment will adhere to the (7) Review is the examination of a from disclosure or cannot be located. following restrictions regarding fees it record located in response to a request (iii) The Arts Endowment will charge charges: in order to determine whether any the direct costs associated with (1) When the Arts Endowment portion of it is exempt from disclosure. conducting any search that requires the determines that a requester is an Review time includes processing any creation of a new computer program to educational institution, non-commercial record for disclosure, such as doing all locate the requested records. The Arts scientific institution, or representative that is necessary to prepare the record Endowment will notify the requester of of the news media, and the records are for disclosure, including the process of the costs associated with creating such not sought for commercial use, it will redacting the record and marking the a program, and the requester must agree not charge search fees. appropriate exemptions. Review costs to pay the associated costs before the (2) If the Arts Endowment fails to are properly charged even if a record costs may be incurred. comply with the FOIA’s time limits in ultimately is not disclosed. Review time (iv) For requests that require the which to respond to a request, it will also includes time spent both obtaining retrieval of records stored by the Arts not charge search fees, or, in the and considering any formal objection to Endowment at a Federal records center instances of requests from requesters disclosure made by a confidential operated by the National Archives and described in paragraph (d)(1) of this commercial information submitter Records Administration (NARA), the section, may not charge duplication under § 1148.7, but it does not include Arts Endowment will charge additional fees, except as described in paragraphs time spent resolving general legal or costs in accordance with the (d)(3) through (5) of this section.

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(3) If the Arts Endowment has for search, review or duplication, unless (g) Charging interest. The Arts determined that unusual circumstances the requester has indicated a Endowment may charge interest on any as defined by the FOIA apply and the willingness to pay fees as high as those unpaid bill starting on the 31st day Arts Endowment provided timely anticipated. If only a portion of the fee following the date of billing the written notice to the requester in can be estimated readily, the Arts requester. Interest charges will be accordance with the FOIA, a failure to Endowment will advise the requester assessed at the rate provided in 31 comply with the time limit shall be accordingly. If the request is not for U.S.C. 3717 and will accrue from the excused for an additional 10 working noncommercial use, the notice will billing date until payment is received by days. specify that the requester is entitled to the Arts Endowment. The Arts (4) If the Arts Endowment has the statutory entitlements of 100 pages Endowment will follow the provisions determined that unusual circumstances, of duplication at no charge and, if the of the Debt Collection Act of 1982 (Pub. as defined by the FOIA, apply and more requester is charged search fees, two L. 97–365, 96 Stat. 1749), as amended, than 5,000 pages are necessary to hours of search time at no charge, and and its administrative procedures, respond to the request, the Arts will advise the requester whether those including the use of consumer reporting Endowment may charge search fees, or, entitlements have been provided. agencies, collection agencies, and offset. in the case of requesters described in (2) If the Arts Endowment notifies the (h) Aggregating requests. When the paragraph (d)(1) of this section, may requester that the actual or estimated Arts Endowment reasonably believes charge duplication fees, if the following fees are in excess of $25.00, the request that a requester or a group of requesters steps are taken: will not be considered received and acting in concert is attempting to divide (i) The Arts Endowment provided further work will not be completed until a single request into a series of requests timely written notice of unusual the requester commits in writing to pay for the purpose of avoiding fees, the circumstances to the requester in the actual or estimated total fee, or Arts Endowment may aggregate those accordance with the FOIA; and designates some amount of fees the requests and charge accordingly. The (ii) The Arts Endowment discussed requester is willing to pay, or in the case Arts Endowment may presume that with the requester via written mail, of a noncommercial use requester who multiple requests of this type made email, or telephone (or made not less has not yet been provided with the within a 30 calendar day period have than three good-faith attempts to do so) requester’s statutory entitlements, been made in order to avoid fees. For how the requester could effectively limit designates that the requester seeks only requests separated by a longer period, the scope of the request in accordance that which can be provided by the the Arts Endowment will aggregate with 5. U.S.C. 552(a)(6)(B)(ii). If this statutory entitlements. The requester them only where there is a reasonable exception is satisfied, the Arts must provide the commitment or basis for determining that aggregation is Endowment may charge all applicable designation in writing, and must, when warranted in view of all the fees incurred in the processing of the applicable, designate an exact dollar circumstances involved. Multiple request. amount the requester is willing to pay. requests involving unrelated matters (5) If a court has determined that The Arts Endowment is not required to cannot be aggregated. exceptional circumstances exist, as accept payments in installments. (i) Advance payments. The following defined by the FOIA, a failure to comply (3) If the requester has indicated a policies and procedures apply to with the time limits shall be excused for willingness to pay some designated advanced payments of fees: the length of time provided by the court amount of fees, but the Arts Endowment (1) For requests other than those order. estimates that the total fee will exceed described in paragraph (i)(2) or (3) of (6) No search or review fees will be that amount, the Arts Endowment will this section, the Arts Endowment will charged for a quarter-hour period unless toll the processing of the request when not require the requester to make an more than half of that period is required it notifies the requester of the estimated advance payment before work is for search or review. fees in excess of the amount the commenced or continued on a request. (7) Except for requesters seeking requester has indicated a willingness to Payment owed for work already records for a commercial use, the Arts pay. The Arts Endowment will inquire completed (i.e., payment before copies Endowment will provide without whether the requester wishes to revise are sent to a requester) is not an advance charge: the amount of fees the requester is payment. (i) The first 100 pages of duplication willing to pay or modify the request. (2) When the Arts Endowment (or the cost equivalent for other media); Once the requester responds, the time to determines or estimates that a total fee and respond will resume from where it was to be charged under this section will (ii) The first two hours of search. at the date of the notification. exceed $250.00, it may require that the (8) No fee will be charged when the (4) The Arts Endowment will make requester make an advance payment up total fee, after deducting the 100 free available its FOIA Public Liaison or to the amount of the entire anticipated pages (or its cost equivalent) and the other designated FOIA contact to assist fee before beginning to process the first two hours of search, is equal to or any requester in reformulating a request request. The Arts Endowment may elect less than $25. to meet the requester’s needs at a lower to process the request prior to collecting (e) Notice of anticipated fees in excess cost. fees when it receives a satisfactory of $25.00. The following procedures (f) Charges for other services. assurance of full payment from a apply when the Arts Endowment Although not required to provide requester with a history of prompt anticipates fees to be in excess of special services, if the Arts Endowment payment. $25.00. chooses to do so as a matter of (3) Where a requester has previously (1) When the Arts Endowment administrative discretion, the direct failed to pay a properly charged FOIA determines or estimates that the fees to costs of providing the service will be fee to any agency within 30 calendar be assessed in accordance with this charged. Examples of such services days of the billing date, the Arts section will exceed $25.00, the Arts include certifying that records are true Endowment may require that the Endowment will notify the requester of copies, providing multiple copies of the requester pay the full amount due, plus the actual or estimated amount of the same document, or sending records by any applicable interest on that prior fees, including a breakdown of the fees means other than first class mail. request, and the Arts Endowment may

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require that the requester make an (i) Disclosure of the requested Endowment will determine whether advance payment of the full amount of information would shed light on the that is the primary interest furthered by any anticipated fee before the Arts operations or activities of the the request. A waiver or reduction of Endowment begins to process a new government. The subject of the request fees is justified when the requirements request or continues to process a must concern identifiable operations or of paragraphs (k)(2)(i) and (ii) of this pending request or any pending appeal. activities of the Federal Government section are satisfied and any commercial Where the Arts Endowment has a with a connection that is direct and interest is not the primary interest reasonable basis to believe that a clear, not remote or attenuated. furthered by the request. The Arts requester has misrepresented the (ii) Disclosure of the requested Endowment ordinarily will presume requester’s identity in order to avoid information is likely to contribute that when a news media requester has paying outstanding fees, it may require significantly to public understanding of satisfied the factors in paragraphs that the requester provide proof of those operations or activities. This (k)(2)(i) and (ii) of this section, the identity. factor is satisfied when the following request is not primarily in the (4) In cases in which the Arts criteria are met: commercial interest of the requester. Endowment requires advance payment, (A) Disclosure of the requested Disclosure to data brokers or others who the request will not be considered records must be meaningfully merely compile and market government received and further work will not be informative about government information for direct economic return completed until the required payment is operations or activities. The disclosure will not be presumed to primarily serve received. If the requester does not pay of information that already is in the the public interest. the advance payment within 30 public domain, in either the same or a calendar days after the date of the Arts substantially identical form, would not (3) Where only some of the records to Endowment’s fee determination, the be meaningfully informative if nothing be released satisfy the requirements for request will be closed. new would be added to the public’s a waiver of fees, a waiver will be (j) Other statutes specifically understanding. granted for those records. providing for fees. The fee schedule of (B) The disclosure must contribute to (4) Requests for a waiver or reduction this section does not apply to fees the understanding of a reasonably broad of fees should be made when the request charged under any statute that audience of persons interested in the is first submitted to the Arts specifically requires the Arts subject, as opposed to the individual Endowment and should address the Endowment to set and collect fees for understanding of the requester. A criteria referenced in paragraphs (k)(1) particular types of records. In instances requester’s expertise in the subject area through (3) of this section. A requester where records responsive to a request as well as the requester’s ability and may submit a fee waiver request at a are subject to a statutorily-based fee intention to effectively convey later time so long as the underlying schedule program, the Arts Endowment information to the public must be record request is pending or on will inform the requester of the contact considered. The Arts Endowment will administrative appeal. When a requester information for that program. presume that a representative of the who has committed to pay fees (k) Requirements for waiver or news media will satisfy this subsequently asks for a waiver of those reduction of fees. The following policies consideration. fees and that waiver is denied, the and procedures apply to fee waivers or (iii) The disclosure must not be requester must pay any costs incurred reductions of fees. primarily in the commercial interest of up to the date the fee waiver request (1) Requesters may seek a waiver of the requester. To determine whether was received. fees by submitting a written application disclosure of the requested information demonstrating how disclosure of the is primarily in the commercial interest § 1148.11 What other rules apply to Arts requested information is in the public of the requester, the Arts Endowment Endowment FOIA requests? interest because it is likely to contribute will consider the following criteria: Nothing in this part shall be significantly to public understanding of (A) The Arts Endowment will identify construed to entitle any person, as of the operations or activities of the whether the requester has any right, to any service or to the disclosure government and is not primarily in the commercial interest that would be of any record to which such person is commercial interest of the requester. furthered by the requested disclosure. A not entitled under the FOIA. (2) The Arts Endowment will furnish commercial interest includes any records responsive to a request without commercial, trade, or profit interest. Dated: February 22, 2019. charge or at a reduced rate when it Requesters will be given an opportunity Gregory Gendron, determines, based on all available to provide explanatory information Director of Administrative Services, National information, that the factors described regarding this consideration. Endowment for the Arts. in paragraphs (k)(2)(i) through (iii) of (B) If there is an identified [FR Doc. 2019–03387 Filed 2–26–19; 8:45 am] this section are satisfied: commercial interest, the Arts BILLING CODE 7537–01–P

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Proposed Rules Federal Register Vol. 84, No. 39

Wednesday, February 27, 2019

This section of the FEDERAL REGISTER is proposing to approve revisions to rule without prior proposal because the contains notices to the public of the proposed New Mexico’s State Implementation Agency views this as noncontroversial issuance of rules and regulations. The Plan (SIP) that incorporate updates to submittal and anticipates no adverse purpose of these notices is to give interested the New Mexico statutes. EPA is also comments. A detailed rationale for the persons an opportunity to participate in the correcting its previous approval of some approval is set forth in the direct final rule making prior to the adoption of the final rules. statute provisions as approval of these rule. If no relevant adverse comments provisions into the SIP was in error. are received in response to this action DATES: Written comments should be no further activity is contemplated. If ENVIRONMENTAL PROTECTION received on or before March 29, 2019. the EPA receives relevant adverse AGENCY ADDRESSES: Submit your comments, comments, the direct final rule will be identified by EPA–R06–OAR–2015– withdrawn and all public comments 40 CFR Part 52 0850, at https://www.regulations.gov or received will be addressed in a via email to [email protected]. For subsequent final rule based on this [EPA–R06–OAR–2015–0850; FRL–9989–08– proposed rule. The EPA will not Region 6] additional information on how to submit comments see the detailed institute a second comment period. Any Air Plan Approval; New Mexico; instructions in the ADDRESSES section of parties interested in commenting on this Approval of Revised Statutes; Error the direct final rule located in the rules action should do so at this time. Correction section of this Federal Register. For additional information, see the FOR FURTHER INFORMATION CONTACT: Jeff direct final rule which is located in the AGENCY: Environmental Protection rules section of this Federal Register. Agency (EPA). Riley, (214) 665–8542, Riley.Jeffrey@ epa.gov. Dated: February 14, 2019. ACTION: Proposed rule. SUPPLEMENTARY INFORMATION: In the Anne Idsal, SUMMARY: Pursuant to the Federal Clean final rules section of this Federal Regional Administrator, Region 6. Air Act (CAA or the Act), the Register, the EPA is approving portions [FR Doc. 2019–02861 Filed 2–26–19; 8:45 am] Environmental Protection Agency (EPA) of the State’s SIP submittal as a direct BILLING CODE 6560–50–P

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Notices Federal Register Vol. 84, No. 39

Wednesday, February 27, 2019

This section of the FEDERAL REGISTER displays a currently valid OMB control discrimination, disability, equal contains documents other than rules or number. employment, and a drug-free work proposed rules that are applicable to the place. public. Notices of hearings and investigations, Food and Nutrition Service Description of Respondents: State, committee meetings, agency decisions and Title: Federal-State Supplemental Territory, and Indian Tribal rulings, delegations of authority, filing of Nutrition Programs Agreement (Form Governments. petitions and applications and agency FNS–339) Reporting and Recordkeeping Number of Respondents: 129. statements of organization and functions are Frequency of Responses: Reporting: examples of documents appearing in this Burden. section. OMB Control Number: 0584–0332. Annually. Summary of Collection: The FNS–339 Total Burden Hours: 32.25. is an annual contract between the U.S. Ruth Brown, DEPARTMENT OF AGRICULTURE Department of Agriculture (USDA) and each State, Territory, and Indian Tribal Departmental Information Collection Clearance Officer. Submission for OMB Review; Government agency seeking to operate [FR Doc. 2019–03432 Filed 2–26–19; 8:45 am] Comment Request one or more of the following programs: The Special Supplemental Nutrition BILLING CODE 3410–30–P February 22, 2019. Program for Women, Infants and The Department of Agriculture has Children (WIC), the WIC Farmers’ DEPARTMENT OF AGRICULTURE submitted the following information Market Nutrition Program (FMNP), and collection requirement(s) to OMB for the Seniors Farmers’ Market Nutrition Submission for OMB Review; review and clearance under the Program (SFMNP). The Food and Comment Request Paperwork Reduction Act of 1995, Nutrition Service (FNS), of the USDA, is Public Law 104–13. Comments are authorized to administer the WIC and The Department of Agriculture has requested regarding (1) whether the the FMNP programs under the following submitted the following information collection of information is necessary authority: Section 17 of the Child collection requirement(s) to OMB for for the proper performance of the Nutrition Act (CNA) of 1966, as review and clearance under the functions of the agency, including amended, and the SFMNP under 7 Paperwork Reduction Act of 1995, whether the information will have U.S.C. 3007. Federal regulations at: 7 Public Law 104–13. Comments are practical utility; (2) the accuracy of the Code of Federal Regulations (CFR) requested regarding (1) whether the agency’s estimate of burden including 246.3(c), 248.3(c), and 249.3(c) require collection of information is necessary the validity of the methodology and that each State agency desiring to for the proper performance of the assumptions used; (3) ways to enhance administer the WIC, FMNP, and/or functions of the agency, including the quality, utility and clarity of the SFMNP programs must enter into a whether the information will have information to be collected; and (4) written agreement with the Department practical utility; (2) the accuracy of the ways to minimize the burden of the for administration of the program(s) in agency’s estimate of burden including collection of information on those who the jurisdiction of the State agency. the validity of the methodology and are to respond, including through the Likewise, a signed FNS–339 between assumptions used; (3) ways to enhance use of appropriate automated, the Department and the State agency is the quality, utility and clarity of the electronic, mechanical, or other a prerequisite to State agencies receiving information to be collected; and (4) technological collection techniques or federal funds in the administration of ways to minimize the burden of the other forms of information technology. one or more programs. collection of information on those who Comments regarding this information Need and Use of the Information: FNS are to respond, including through the collection received by March 29, 2019 uses the signed, FNS–339 to effectuate use of appropriate automated, will be considered. Written comments the use of federal funds for the electronic, mechanical, or other should be addressed to: Desk Officer for administration of the WIC, FMNP, and technological collection techniques or Agriculture, Office of Information and SFMNP programs. The Department other forms of information technology. Regulatory Affairs, Office of agrees to make funds available to the Comments regarding this information Management and Budget (OMB), OIRA_ State Agency for the administration of collection received by March 29, 2019 [email protected] or fax (202) the WIC, FMNP, and/or SFMNP in will be considered. Written comments 395–5806 and to Departmental accordance with federal regulations (7 should be addressed to: Desk Officer for Clearance Office, USDA, OCIO, Mail CFR parts 246, 248, and 249) and any Agriculture, Office of Information and Stop 7602, Washington, DC 20250– amendments thereto. The State agency Regulatory Affairs, Office of 7602. Copies of the submission(s) may agrees to accept Federal funds for Management and Budget (OMB), New be obtained by calling (202) 720–8958. expenditure in accordance with the Executive Office Building, 725 17th An agency may not conduct or applicable statutes and federal Street NW, Washington, DC 20502. sponsor a collection of information regulations, and any amendment Commenters are encouraged to submit unless the collection of information thereto, and to comply with all the their comments to OMB via email to: displays a currently valid OMB control provisions of such statutes and [email protected] or number and the agency informs regulations, and amendments thereto. fax (202) 395–5806 and to Departmental potential persons who are to respond to Likewise, by signing the FNS–339, the Clearance Office, USDA, OCIO, Mail the collection of information that such State agency agrees that it will comply Stop 7602, Washington, DC 20250– persons are not required to respond to with applicable laws, regulations and 7602. Copies of the submission(s) may the collection of information unless it policies governing civil rights, be obtained by calling (202) 720–8958.

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An agency may not conduct or DEPARTMENT OF AGRICULTURE the ecological and social benefits, cots sponsor a collection of information and risks of different land management unless the collection of information Submission for OMB Review; practices in northern Great Plains displays a currently valid OMB control Comment Request grasslands invaded by Kentucky number and the agency informs bluegrass. February 22, 2019. Need and Use of the Information: The potential persons who are to respond to The Department of Agriculture has the collection of information that such survey will collect information from a submitted the following information randomly selected subset of landowners persons are not required to respond to collection requirement(s) to OMB for the collection of information unless it in 9 Counties in North Dakota to asses review and clearance under the and identify sustainable management displays a currently valid OMB control Paperwork Reduction Act of 1995, number. practices of northern Great Plains Public Law 104–13. Comments are grasslands. The information gathered Animal and Plant Health Inspection requested regarding (1) whether the from the survey will enable researchers collection of information is necessary Service to more effectively transfer information for the proper performance of the to landowners to increase the impact of Title: Lacey Act Declaration functions of the agency, including this research on the agricultural Requirements; Plants and Plant whether the information will have community of the norther Great Plains. Products. practical utility; (2) the accuracy of the Description of Respondents: agency’s estimate of burden including OMB Control Number: 0579–0349. Individuals or households; Farms. the validity of the methodology and Number of Respondents: 718. Summary of Collection: The Lacey assumptions used; (3) ways to enhance Frequency of Responses: Reporting: Act, first enacted in 1900 and the quality, utility and clarity of the On occasion. significantly amended in 1988, is the information to be collected; and (4) Total Burden Hours: 180. United States’ oldest Wildlife Protection ways to minimize the burden of the Statute. The Act combats trafficking in collection of information on those who Ruth Brown, ‘‘illegal’’ wildlife, fish, or plants. The are to respond, including through the Departmental Information Collection Food, Conservation and Energy Act of use of appropriate automated, Clearance Officer. 2008, which took effect May 22, 2008, electronic, mechanical, or other [FR Doc. 2019–03347 Filed 2–26–19; 8:45 am] amended the Lacey Act by expanding its technological collection techniques or BILLING CODE 3410–03–P protection to a broader range of plants other forms of information technology. and plant products (Section 8204, Comments regarding this information DEPARTMENT OF AGRICULTURE Prevention of Illegal Logging Practices). collection received by March 29, 2019 will be considered. Written comments Need and Use of the Information: should be addressed to: Desk Officer for Animal and Plant Health Inspection Under the amended Lacey Act, Agriculture, Office of Information and Service importers are required to submit a Regulatory Affairs, Office of [Docket No. APHIS–2018–0075] declaration form (PPQ 505) for all Management and Budget (OMB), New plants. The PPQ 505B is the Executive Office Building, 725 17th Notice of Availability of an supplemental form which is provided Street NW, Washington, DC 20502. Environmental Assessment for the the declarer if additional space is Commenters are encouraged to submit Release of Biological Control of needed to enter the required their comments to OMB via email to: Brazilian Peppertree information. The declaration must [email protected] or AGENCY: Animal and Plant Health contain, among other things, the fax (202) 395–5806 and to Departmental Inspection Service, USDA. scientific name of the plant, value of the Clearance Office, USDA, OCIO, Mail ACTION: importation, quantity of the plant, and Stop 7602, Washington, DC 20250– Notice of availability. name of the country from which the 7602. Copies of the submission(s) may SUMMARY: We are advising the public plant was harvested. If species varies or be obtained by calling (202) 720–8958. that the Animal and Plant Health is unknown, importers will have to An agency may not conduct or Inspection Service has prepared an declare the name of each species that sponsor a collection of information environmental assessment relative to may have been used to produce the unless the collection of information permitting the release of Calophya product. This information will be used displays a currently valid OMB control latiforceps and Pseudophilothrips ichini to support investigations into illegal number and the agency informs for the biological control of Brazilian logging practices by the Justice potential persons who are to respond to peppertree, a significant invasive weed, Department and also acts as a deterrent the collection of information that such within the contiguous United States. to illegal logging practices worldwide. persons are not required to respond to Based on the environmental assessment the collection of information unless it and other relevant data, we have Description of Respondents: Business displays a currently valid OMB control or other for-profit. reached a preliminary determination number. that the release of these control agents Number of Respondents: 26,044. Agricultural Research Service will not have a significant impact on the Frequency of Responses: Title: Your Perspective on Your quality of the human environment. We Recordkeeping; Reporting: On occasion. Grasslands in the Northern Great Plains. are making the environmental Total Burden Hours: 338,019. OMB Control Number: 0518–NEW. assessment available to the public for Summary of Collection: The review and comment. Ruth Brown, Agricultural Research Service within DATES: We will consider all comments Departmental Information Collection the Department of Agriculture will that we receive on or before March 29, Clearance Officer. conduct a mail survey. This survey is a 2019. [FR Doc. 2019–03389 Filed 2–26–19; 8:45 am] key component of a project that will ADDRESSES: You may submit comments BILLING CODE 3410–34–P provide comprehensive evaluation of by either of the following methods:

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• Federal eRulemaking Portal: Go to The Animal and Plant Health collaborative relationships and to http://www.regulations.gov/#!docket Inspection Service’s (APHIS’) review provide advice and recommendations to Detail;D=APHIS-2018-0075. and analysis of the potential the Forest Service concerning projects • Postal Mail/Commercial Delivery: environmental impacts associated with and funding consistent with Title II of Send your comment to Docket No. the proposed release are documented in the Act. Additional RAC information, APHIS–2018–0075, Regulatory Analysis detail in an environmental assessment including the meeting agenda and the and Development, PPD, APHIS, Station (EA) entitled ‘‘Field Release of the meeting summary/minutes can be found 3A–03.8, 4700 River Road, Unit 118, Insects Calophya latiforceps (Hemiptera: at the following website: www.fs.fed.us/ Riverdale, MD 20737–1238. Calophyidae) and Pseudophilothrips r8/gwj. Supporting documents and any ichini (Thysanoptera: Phlaeothripidae) DATES: The meeting will be held on comments we receive on this docket for Classical Biological Control of March 15, 2019 from 10:00 a.m. to 6:00 may be viewed at http:// Brazilian Peppertree in the Contiguous p.m. www.regulations.gov/#!docket United States’’ (January 2018). We are All RAC meetings are subject to Detail;D=APHIS-2018-0075 or in our making the EA available to the public cancellation. For status of meeting prior reading room, which is located in Room for review and comment. We will to attendance, please contact the person 1141 of the USDA South Building, 14th consider all comments that we receive listed under FOR FURTHER INFORMATION Street and Independence Avenue SW, on or before the date listed under the CONTACT. Washington, DC. Normal reading room heading DATES at the beginning of this ADDRESSES: The meetings will be held at hours are 8 a.m. to 4:30 p.m., Monday notice. the George Washington and Jefferson through Friday, except holidays. To be The EA may be viewed on the National Forests Supervisor’s Office, sure someone is there to help you, Regulations.gov website or in our Conference Room, 5162 Valleypointe please call (202) 7997039 before coming. reading room (see ADDRESSES above for Parkway, Roanoke, Virginia. a link to Regulations.gov and Written comments may be submitted FOR FURTHER INFORMATION CONTACT: Dr. information on the location and hours of as described under SUPPLEMENTARY Colin D. Stewart, Assistant Director, the reading room). You may also request INFORMATION. All comments, including Pests, Pathogens, and Biocontrol paper copies of the EA by calling or names and addresses when provided, Permits, Permitting and Compliance writing to the person listed under FOR are placed in the record and are Coordination, PPQ, APHIS, 4700 River FURTHER INFORMATION CONTACT. Please available for public inspection and Road, Unit 133, Riverdale, MD 20737– refer to the title of the EA when copying. The public may inspect 1231; (301) 851–2327, email: requesting copies. comments received at the George [email protected]. The EA has been prepared in Washington and Jefferson National SUPPLEMENTARY INFORMATION: Brazilian accordance with: (1) The National Forests Supervisor’s Office. Please call peppertree (Schinus terebinthifolia) is Environmental Policy Act of 1969 ahead to facilitate entry into the an evergreen perennial shrub or small (NEPA), as amended (42 U.S.C. 4321 et building. tree found in various southern States seq.), (2) regulations of the Council on FOR FURTHER INFORMATION CONTACT: but grows primarily in Florida. This Environmental Quality for Rebecca Robbins, RAC Coordinator by noxious weed poses a serious threat to implementing the procedural provisions phone at (540) 265–5173 or via email at biodiversity in many ecosystems and of NEPA (40 CFR parts 1500–1508), (3) [email protected]. invades areas such as canal banks, USDA regulations implementing NEPA Individuals who use fallow farmlands, and natural (7 CFR part 1b), and (4) APHIS’ NEPA telecommunication devices for the deaf communities. Brazilian peppertree’s Implementing Procedures (7 CFR part (TDD) may call the Federal Information invasiveness can be attributed to its 372). Relay Service (FIRS) at 1–800–877–8339 tolerance to fire, drought, and shade. Done in Washington, DC, this 21st day of between 8:00 a.m. and 8:00 p.m., Since the late 1800s, Brazilian February 2019. Eastern Standard Time, Monday peppertree has been introduced as an Kevin Shea, through Friday. ornamental plant into many tropical and Administrator, Animal and Plant Health SUPPLEMENTARY INFORMATION: The subtropical regions around the world. Inspection Service. purpose of the meeting is to prioritize Brazilian peppertree was introduced in [FR Doc. 2019–03322 Filed 2–26–19; 8:45 am] and recommend projects for Title II Florida and Hawaii as an attractive BILLING CODE 3410–34–P funds. The committee will also use the ornamental and source for honeybee meeting to nominate and vote on a nectar. The dried fruits of Brazilian Chairperson. The meeting is open to the peppertree have been used as a spice for DEPARTMENT OF AGRICULTURE public. The agenda will include time for cooking and are sold in the United people to make oral statements of three States and elsewhere. In the United Forest Service minutes or less. Individuals wishing to States, Brazilian peppertree occurs in make an oral statement should request Florida, Texas, California, Hawaii, the Virginia Resource Advisory Committee in writing by March 6, 2019 to be Commonwealth of Puerto Rico, and the AGENCY: Forest Service, USDA. scheduled on the agenda. Anyone who U.S. Virgin Islands. ACTION: Notice of meeting. would like to bring related matters to The insects Calophya latiforceps, the attention of the committee may file ‘‘jumping plant-lice,’’ and SUMMARY: The Virginia Resource written statements with the committee Pseudophilothrips ichini were chosen as Advisory Committee (RAC) will meet in staff before or after the meeting. Written potential biological control agents. Both Roanoke, VA. The committee is comments and requests for time for oral agents are expected to reduce the authorized under the Secure Rural comments must be sent to Rebecca severity of infestations of Brazilian Schools and Community Self- Robbins, RAC Coordinator, George peppertree, and both are known to be Determination Act (the Act) and Washington and Jefferson NF highly host specific due to their operates in compliance with the Federal Supervisor’s Office, 5162 Valleypointe intimate relationships with their host Advisory Committee Act. The purpose Parkway, Roanoke, Virginia 24019; or by plants. of the committee is to improve email to [email protected].

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Meeting Accommodations: If you are DEPARTMENT OF AGRICULTURE DEPARTMENT OF AGRICULTURE a person requiring reasonable accommodation, please make requests Forest Service Forest Service in advance for sign language Idaho Panhandle Resource Advisory interpreting, assistive listening devices Shasta-Trinity National Forest; Committee or other reasonable accommodation for California; Lower McCloud Fuels access to the facility or proceedings by Management Project AGENCY: Forest Service, USDA. contacting the person listed in the ACTION: Notice of meetings. AGENCY: Forest Service, USDA. section titled FOR FURTHER INFORMATION CONTACT. All reasonable ACTION: Withdrawal of notice of intent SUMMARY: The Idaho Panhandle accommodation requests are managed to prepare an Environmental Impact Resource Advisory Committee (RAC) on a case by case basis. Statement. will meet in Coeur d’Alene, Idaho. The committee is authorized under the Dated: February 8, 2019. Secure Rural Schools and Community SUMMARY: The Shasta-Trinity National Joby P. Timm, Self-Determination Act (the Act) and Forest is withdrawing the Notice of Forest Supervisor. operates in compliance with the Federal Intent (NOI) to prepare an [FR Doc. 2019–03379 Filed 2–26–19; 8:45 am] Advisory Committee Act. The purpose Environmental Impact Statement (EIS) of the committee is to improve BILLING CODE 3411–15–P for the Lower McCloud Fuels collaborative relationships and to Management Project. The original NOI provide advice and recommendations to was published in the Federal Register DEPARTMENT OF AGRICULTURE the Forest Service concerning projects on March 22, 2016. No significant issues and funding consistent with Title II of Forest Service were identified during this scoping the Act. RAC information can be found period or any other opportunity to at the following website: http:// Klamath National Forest; California; comment. Upon further evaluation, it www.fs.usda.gov/main/ipnf/ Elk Creek Watershed Project also appears that there are no potential workingtogether/advisorycommittees. significant impacts to the human DATES: The meetings will be held on the AGENCY: Forest Service, USDA. environment associated with the following dates: project. As a result, the Forest is • Friday, March 8, 2019, at 9:00 a.m., ACTION: Withdrawal of Notice of Intent withdrawing its intent to prepare an EIS • Friday, March 29, 2019, at 9:00 to Prepare an Environmental Impact and is now preparing an Environmental a.m., and Statement. • Assessment (EA). All comments Friday, April 5, 2019, at 9:00 a.m. previously received regarding this All RAC meetings are subject to SUMMARY: The Klamath National Forest project will be retained and considered cancellation. For updated status of the is withdrawing the Notice of Intent meeting prior to attendance, please in the development of the EA. If it is (NOI) to prepare an Environmental contact the person listed under FOR determined that the project may have Impact Statement for the Elk Creek FURTHER INFORMATION CONTACT. significant impacts, the EIS process will Watershed Project. The original NOI ADDRESSES: be reinitiated and a NOI will be The meetings will be held at was published in the Federal Register the Idaho Panhandle National Forests published. on October 2, 2017. Supervisor’s Office, 3815 Schreiber The project is being canceled and will FOR FURTHER INFORMATION CONTACT: Way, Coeur d’Alene, Idaho. be combined with a new project for Questions concerning withdrawal of the Written comments may be submitted SUPPLEMENTARY which an Environmental Assessment NOI should be addressed to Emelia as described under INFORMATION. All comments, including will be prepared. Barnum at the following address: Shasta McCloud Management Unit, Shasta- names and addresses, when provided, FOR FURTHER INFORMATION CONTACT: Trinity National Forest, 204 W Alma St., are placed in the record and are Questions concerning this notice and available for public inspection and Mt. Shasta, CA 96067; via phone at 530– requests to be added to the project copying. The public may inspect 926–9600; or via email at mailing list should be directed to comments received at the Idaho ebarnumfs.fed.us. Individuals and Benjamin Daly, Happy Camp/Oak Knoll Panhandle National Forests Supervisor’s organizations that previously submitted Ranger District, via mail at 63822 State Office. Please call ahead to facilitate comments on this project will remain on Highway 96, P.O. Box 377, Happy entry into the building. the project mailing list and do not need Camp, CA 96039; via telephone at (530) FOR FURTHER INFORMATION CONTACT: to contact the Forest. 493–1734; or via email at bdaly@ Phillip Blundell, RAC Coordinator, by fs.fed.us. Individuals who use phone at 208–783–2101 or by email at telecommunication devices for the deaf [email protected]. Individuals who have previously (TDD) may call the Federal Information Individuals who use submitted comments on this project will Relay Service (FIRS) at 1–800–877–8339 telecommunication devices for the deaf remain on the project mailing list and between 8 a.m. and 8 p.m., Eastern (TDD) may call the Federal Information do not need to contact the Forest. Time, Monday through Friday. Relay Service (FIRS) at 1–800–877–8339 Dated: February 19, 2019. between 8:00 a.m. and 8:00 p.m., Dated: February 13, 2019. Allen Rowley, Eastern Standard Time, Monday Allen Rowley, Acting Associate Deputy Chief, National through Friday. Acting Associate Deputy Chief, National Forest System. SUPPLEMENTARY INFORMATION: The Forest System. [FR Doc. 2019–03358 Filed 2–26–19; 8:45 am] purpose of these meetings are to: [FR Doc. 2019–03360 Filed 2–26–19; 8:45 am] 1. Elect a RAC chair and decide upon BILLING CODE 3411–15–P BILLING CODE 3411–15–P operating procedures; 2. Review the RAC charter;

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3. Complete ethics training; and • Email: Scan the completed form The Committee, appointed by the 4. Discuss calling for project and email to: [email protected]. Secretary of Agriculture, consists of 22 proposals. • eFax: 855–493–0445. members representing a broad range of The meetings are open to the public. • Mail: Nominations should be disciplines and interests, including, but The agendas will include time for mailed to Kevin Barnes, Associate not limited to, producers, people to make oral statements of three Administrator, National Agricultural representatives of national farm minutes or less. Individuals wishing to Statistics Service, U.S. Department of organizations, agricultural economists, make an oral statement should request Agriculture, 1400 Independence Avenue rural sociologists, farm policy analysts, in writing by March 1, 2019, to be SW, Room 5041, South Building, educators, State agriculture scheduled on the agenda for the March Washington, DC 20250–2010. representatives, and agriculture-related 8, 2019 meeting; March 22, 2019, to be • Hand Delivery/Courier: Hand business and marketing experts. scheduled on the agenda for the March deliver to: Kevin Barnes, Associate Members serve staggered 2-year terms, 29, 2019 meeting; and March 29, 2019, Administrator, National Agricultural with terms for half of the Committee to be scheduled on the agenda for the Statistics Service, U.S. Department of members expiring in any given year. April 5, 2019 meeting. Anyone who Agriculture, 1400 Independence Avenue Nominations are being sought for 22 would like to bring related matters to SW, Room 5041, South Building, open Committee seats. Members can the attention of the committee may file Washington, DC 20250–2010. serve up to 3 terms for a total of 6 written statements with the committee FOR FURTHER INFORMATION CONTACT: consecutive years. The Chairperson of staff before or after the meetings. Kevin Barnes, Associate Administrator, the Committee shall be elected by Written comments and requests for time National Agricultural Statistics Service, members to serve a 1-year term. to make oral comments must be sent to (202) 720–4333. Equal opportunity practices, in line Phillip Blundell, RAC Coordinator, Post with USDA policies, will be followed in SUPPLEMENTARY INFORMATION: On all membership appointments to the Office Box 159, Smelterville, Idaho; by December 18, 2018, the Secretary of email to [email protected], or by Committee. To ensure that the Agriculture renewed the Advisory recommendations of the Committee facsimile at 208–783–2154. Committee charter for a two-year term to Meeting Accommodations: If you are have taken into account the needs of the expire on December 17, 2020. The a person requiring reasonable diverse groups served by USDA, purpose of the Committee is to advise accommodation, please make requests membership will include to the extent the Secretary of Agriculture on the in advance for sign language possible, individuals with demonstrated scope, timing, content, etc., of the interpreting, assistive listening devices ability to represent the needs of all periodic censuses and surveys of or other reasonable accommodation. For racial and ethnic groups, women and agriculture, other related surveys, and access to the facility or proceedings, men, and persons with disabilities. the types of information to obtain from please contact the person listed in the The duties of the Committee are respondents concerning agriculture. The section titled FOR FURTHER INFORMATION solely advisory. The Committee will Committee also prepares CONTACT. All reasonable make recommendations to the Secretary recommendations regarding the content accommodation requests are managed of Agriculture with regards to the of agricultural reports and presents the on a case by case basis. agricultural statistics programs of NASS, views and needs for data of major and such other matters as it may deem February 13, 2019. suppliers and users of agricultural advisable, or which the Secretary of Allen Rowley, statistics. Agriculture; Under Secretary for Acting Associate Deputy Chief, National Each person nominated to serve on Research, Education, and Economics; or Forest System. the committee is required to submit the the Administrator of NASS may request. [FR Doc. 2019–03359 Filed 2–26–19; 8:45 am] following form: AD–755 (Advisory The Committee will meet at least BILLING CODE 3411–15–P Committee Membership Background annually. All meetings are open to the Information, OMB Number 0505–0001), public. Committee members are available on the internet at https:// reimbursed for official travel expenses DEPARTMENT OF AGRICULTURE www.ocio.usda.gov/document/ad-755. only. This form may also be requested by Send questions, comments, and National Agricultural Statistics Service telephone, fax, or email using the requests for additional information to Notice of Invitation for Nominations to information above. Completed forms the email address, fax number, or the Advisory Committee on Agriculture may be faxed to the number above, address listed above. Statistics mailed, or completed and emailed Signed at Washington, DC, February 11, directly from the internet site. For more 2019. AGENCY: National Agricultural Statistics information on the Advisory Committee Kevin Barnes, Service (NASS), USDA. on Agriculture Statistics, see the NASS Associate Administrator, National ACTION: Notice. website at https://www.nass.usda.gov/ Agricultural Statistics Service. About_NASS/Advisory_Committee_on_ [FR Doc. 2019–03264 Filed 2–26–19; 8:45 am] SUMMARY: In accordance with the Agriculture_Statistics/index.php. The BILLING CODE 3410–20–P Federal Advisory Committee Act, this Committee draws on the experience and notice announces an invitation from the expertise of its members to form a Office of the Secretary of Agriculture for collective judgment concerning DEPARTMENT OF AGRICULTURE nominations to the Advisory Committee agriculture data collected and the on Agriculture Statistics. statistics issued by NASS. This input is Rural Utilities Service DATES: The nomination period for vital to keep current with shifting data interested candidates will close 30 days needs in the rapidly changing Cardinal-Hickory Creek 345-kv after publication of this notice. agricultural environment and keeps Transmission Line Project ADDRESSES: You may submit NASS informed of emerging issues in AGENCY: Rural Utilities Service, USDA. nominations by any of the following the agriculture community that can ACTION: Notice of public meetings. methods: affect agricultural statistics activities.

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SUMMARY: The Rural Utilities Service Statement (EIS) to meet its ARCHITECTURAL AND (RUS), an agency of the United States responsibilities under the National TRANSPORTATION BARRIERS Department of Agriculture, published a Environmental Policy Act (NEPA) and 7 COMPLIANCE BOARD notice of availability, public meetings, CFR 1794 related to providing financial and Section 106 notification on assistance to Dairyland Power Meetings December 7, 2018 (83 FR 63149) Federal Cooperative (DPC) for its share in the AGENCY: Architectural and Register for the Cardinal-Hickory Creek construction of a proposed 345-kilovolt Transportation Barriers Compliance 345-kV Transmission Line Project Draft (kV) transmission line and associated Board. Environmental Impact Statement (EIS). infrastructure connecting the Hickory ACTION: Notice of meetings. Meetings were scheduled for January Creek Substation in Dubuque County, 2019 and the public review period was Iowa, with the Cardinal Substation in SUMMARY: The Architectural and to conclude on February 5, 2019. the Town of Middle, Wisconsin (near Transportation Barriers Compliance On February 12, 2019 (84 FR 3412), Board (Access Board) plans to hold its RUS published a notice announcing an Madison, Wisconsin). The Project also regular committee and Board meetings extension of the public comment period includes a new intermediate 345/138-kV in Washington, DC, Monday through to April 1, 2019 due to the lapse in substation near the Village of Montfort Wednesday, March 11–13, 2019, at the federal funding. Previously cancelled in either Grant County or Iowa County, times and location listed below. Draft EIS public comment meetings in Wisconsin. The total length of the 345- January 2019 are rescheduled for six kV transmission lines associated with DATES: The schedule of events open to days in March. the proposed project will be the public is as follows: DATES: RUS will conduct six public approximately 125 miles. DPC and the Monday, March 11, 2019 meetings as follows: other project participants have identified proposed and alternate 10:00 a.m.–11:00 a.m.—Technical March 13 at 5–7 p.m.—Dodger Bowl Programs Committee Banquet Hall at 318 King St. in segments and locations for transmission Dodgeville, Wisconsin lines and associated facilities and for Tuesday, March 12, 2019 March 14 at 5–7 p.m.—Deer Valley the intermediate substation. Dairyland 9:30 a.m.–10:30 a.m.—Planning and Lodge at 401 W Industrial Dr. in Power Cooperative is requesting RUS to Evaluation Committee Barneveld, Wisconsin provide financing for its portion of the March 15 at 5–7 p.m.—Guttenberg proposed project. DPC is participating Wednesday, March 13, 2019 Municipal Bldg. at 502 S First St. in in the proposed project with two other 9:30 a.m.–10:30 a.m.—Ad Hoc Guttenberg, Iowa utilities, American Transmission Committee on Design Guidance March 18 at 5–7 p.m.—Cassville Middle Company LLC, and ITC Midwest LLC 10:30 a.m.–11:00 a.m.—Budget School at 715 E Amelia St. in (Utilities). Committee Cassville, Wisconsin 11:00 a.m.–Noon—Ad Hoc Committee March 19 at 5–7 p.m.—Peosta The purpose of the proposed project is to: (1) Address reliability issues on on Frontier Issues Community Center at 7896 Burds 1:30 p.m.–3:00 p.m.—Board Meeting Rd. in Peosta, Iowa the regional bulk transmission system, ADDRESSES: Meetings will be held at the March 20 at 5–7 p.m.—Madison (2) alleviate congestion that occurs in Access Board Conference Room, 1331 F Marriott West at 1313 John Q. certain parts of the transmission system Street NW, Suite 800, Washington, DC Hammons Dr. in Middleton, and remove constraints that limit the 20004. Wisconsin delivery of power, (3) expand the access FOR FURTHER INFORMATION CONTACT: All meetings will be held from 5:00 to of the transmission system to additional For 7:00 p.m. local time. A court reporter resources, (4) increase the transfer further information regarding the will be available. capability of the electrical system meetings, please contact David Capozzi, Written comments on this Draft EIS between Iowa and Wisconsin, (5) reduce Executive Director, (202) 272–0010 will be accepted until April 1, 2019. the losses in transferring power and (voice); (202) 272–0054 (TTY). A copy of the Draft EIS may be increase the efficiency of the SUPPLEMENTARY INFORMATION: At the viewed online at the following website: transmission system, and 6) respond to Board meeting scheduled on the https://www.rd.usda.gov/publications/ public policy objectives aimed at afternoon of Wednesday, March 13, the environmental-studies/impact- enhancing the nation’s transmission Access Board will consider the statements/cardinal-%E2%80%93- system and to support the changing following agenda items: • hickory-creek-transmission-line and generation mix. Approval of November 7, 2018 draft Dairyland Power Cooperative, 3521 East meeting minutes (vote) Avenue, South, La Crosse, WI 54602 RUS is the lead agency for the federal • Ad Hoc Committee Reports: Design and at local libraries in the project area. environmental review with U.S. Fish Guidance; Frontier Issues FOR FURTHER INFORMATION CONTACT: To and Wildlife Service (USFWS), U.S. • Planning and Evaluation Committee obtain copies of the Draft EIS or for Army Corps of Engineers (USACE), and • Technical Programs Committee further information, contact: Dennis the U.S. Environmental Protection • Budget Committee Rankin or Lauren Cusick, Agency (USEPA) serving as cooperating • Election Assistance Commission Environmental Protection Specialists, agencies, and the National Park Service Report U.S. Department of Agriculture, Rural (NPS) as a participating agency. • Election of Officers • Utilities Service, 1400 Independence Dated: February 21, 2019. Executive Director’s Report • Avenue SW, Room 2244, Stop 1571, Nicole Schindler, Public Comment (final 15 minutes of Washington, DC 20250–1571, or email the meeting) Acting Director, Engineering and [email protected] OR Environmental Staff Rural Utilities Service. Members of the public can provide [email protected]. comments either in-person or over the [FR Doc. 2019–03329 Filed 2–26–19; 8:45 am] SUPPLEMENTARY INFORMATION: RUS has telephone during the final 15 minutes of prepared a Draft Environmental Impact BILLING CODE P the Board meeting on Wednesday,

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March 13, 2019. Any individual The proposed subzone (852.84 acres) the FTZ Board’s standard 2,000-acre interested in providing comment is is located at 1655 Industrial Avenue, activation limit for a zone project. The asked to pre-register by sending an Sidney, Nebraska. No authorization for proposed zone would be adjacent to the email to [email protected] with production activity has been requested proposed U.S. Customs and Border the subject line ‘‘Access Board at this time. The proposed subzone Protection (CBP) user fee airport at the meeting—Public Comment’’ with your would be subject to the existing Grand Junction Regional Airport, which name, organization, state, and topic of activation limit of FTZ 59. currently has received preliminary comment included in the body of your In accordance with the Board’s approval from CBP. The application was email. All emails to register for public regulations, Christopher Kemp of the submitted pursuant to the provisions of comment must be received by FTZ Staff is designated examiner to the Foreign-Trade Zones Act, as Wednesday, March 6, 2019. review the application and make amended (19 U.S.C. 81a–81u), and the Commenters will be provided with a recommendations to the Executive regulations of the Board (15 CFR part call-in number and passcode before the Secretary. 400). It was formally docketed on meeting. Commenters will be called on Public comment is invited from February 21, 2019. The applicant is in the order by which they are pre- interested parties. Submissions shall be authorized to make the proposal under registered. Due to time constraints, each addressed to the Board’s Executive Title 7, Article 49.5 of the Colorado commenter is limited to two minutes. Secretary at the address below. The Revised Statutes. Commenters on the telephone will be in closing period for their receipt is April The applicant’s proposed service area a listen-only capacity until they are 8, 2019. Rebuttal comments in response under the ASF would be Delta, Garfield called on. to material submitted during the and Mesa Counties, Colorado in their All meetings are accessible to persons foregoing period may be submitted entirety and portions of Montrose and with disabilities. An assistive listening during the subsequent 15-day period to Rio Blanco Counties, Colorado, as system, Communication Access April 23, 2019. described in the application. If Realtime Translation (CART), and sign A copy of the application will be approved, the applicant would be able language interpreters will be available at available for public inspection at the to serve sites throughout the service area the Board meeting and committee Office of the Executive Secretary, based on companies’ needs for FTZ meetings. Foreign-Trade Zones Board, Room designation. The proposed service area Persons attending Board meetings are 21013, U.S. Department of Commerce, would be within and adjacent to the requested to refrain from using perfume, 1401 Constitution Avenue NW, proposed Grand Junctional Regional cologne, and other fragrances for the Washington, DC 20230–0002, and in the Airport CBP user fee airport. comfort of other participants (see ‘‘Reading Room’’ section of the Board’s The application indicates a need for www.access-board.gov/the-board/ website, which is accessible via zone services in the Grand Junction, Colorado area. Several firms have policies/fragrance-free-environment for www.trade.gov/ftz. indicated an interest in using zone more information). For further information, contact procedures for warehousing/distribution You may view the Wednesday, March Christopher Kemp at activities for a variety of products. The 13, 2019 meeting through a live webcast [email protected] or (202) application is not requesting any magnet from 1:30 p.m. to 3:00 p.m. at: 482–0862. www.access-board.gov/webcast. sites or subzones/usage-driven sites at Dated: February 21, 2019. this time. Specific production approvals David M. Capozzi, Andrew McGilvray, are not being sought at this time. Such Executive Director. Executive Secretary. requests would be made to the FTZ [FR Doc. 2019–03342 Filed 2–26–19; 8:45 am] [FR Doc. 2019–03424 Filed 2–26–19; 8:45 am] Board on a case-by-case basis. BILLING CODE 8150–01–P BILLING CODE 3510–DS–P In accordance with the FTZ Board’s regulations, Christopher Kemp of the FTZ Staff is designated examiner to DEPARTMENT OF COMMERCE DEPARTMENT OF COMMERCE evaluate and analyze the facts and information presented in the application Foreign-Trade Zones Board Foreign-Trade Zones Board and case record and to report findings [B–06–2019] and recommendations to the FTZ Board. [S–24–2019] Public comment is invited from Foreign-Trade Zone 59—Lincoln, Proposed Foreign-Trade Zone—Grand interested parties. Submissions shall be Nebraska; Application for Subzone; Junction, Colorado Under Alternative addressed to the FTZ Board’s Executive Adams Warehousing, LLC; Sidney, Site Framework Secretary at the address below. The Nebraska closing period for their receipt is April An application has been submitted to 29, 2019. Rebuttal comments in An application has been submitted to the Foreign-Trade Zones (FTZ) Board by response to material submitted during the Foreign-Trade Zones Board (the the Grand Junction Area Chamber of the foregoing period may be submitted Board) by Lincoln Foreign-Trade Zone, Commerce to establish a foreign-trade during the subsequent 15-day period to Inc., grantee of FTZ 59, requesting zone in the Grand Junction, Colorado May 13, 2019. subzone status for the facility of Adams area, under the alternative site A copy of the application will be Warehousing Company, LLC (Adams framework (ASF) adopted by the FTZ available for public inspection at the Warehousing), located in Sidney, Board (15 CFR Sec. 400.2(c)). The ASF Office of the Executive Secretary, Nebraska. The application was is an option for grantees for the Foreign-Trade Zones Board, Room submitted pursuant to the provisions of establishment or reorganization of zones 21013, U.S. Department of Commerce, the Foreign-Trade Zones Act, as and can permit significantly greater 1401 Constitution Avenue NW, amended (19 U.S.C. 81a–81u), and the flexibility in the designation of new Washington, DC 20230–0002, and in the regulations of the Board (15 CFR part ‘‘subzones’’ or ‘‘usage-driven’’ FTZ sites ‘‘Reading Room’’ section of the FTZ 400). It was formally docketed on for operators/users located within a Board’s website, which is accessible via February 21, 2019. grantee’s ‘‘service area’’ in the context of www.trade.gov/ftz.

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For further information, contact original request for review.4 No other Notification Regarding Administrative Christopher Kemp at party requested a review of these 80 Protective Order [email protected] or (202) companies. This notice also serves as a reminder 482–0862. Partial Rescission of Review to parties subject to administrative Dated: February 21, 2019. protective order (APO) of their Andrew McGilvray, Pursuant to 19 CFR 351.213(d)(1), responsibility concerning the return or Executive Secretary. Commerce will rescind an destruction of proprietary information [FR Doc. 2019–03425 Filed 2–26–19; 8:45 am] administrative review, in whole or in disclosed under APO in accordance BILLING CODE 3510–DS–P part, if the party that requested the with 19 CFR 351.305(a)(3), which review withdraws its request within 90 continues to govern business days of the publication of the notice of proprietary information in this segment DEPARTMENT OF COMMERCE initiation of the requested review. of the proceeding. Timely written Because all active requests for notification of the return or destruction International Trade Administration administrative review of the 80 of APO materials, or conversion to [A–583–854] companies listed in the Appendix were judicial protective order, is hereby withdrawn by Mid Continent within 90 requested. Failure to comply with the Certain Steel Nails From Taiwan: days of the date of publication of the regulations and terms of an APO is a Partial Rescission of Antidumping Initiation Notice, and no other violation which is subject to sanction. Duty Administrative Review; 2017– interested party requested a review of This notice is issued and published in 2018 these 80 companies, Commerce is accordance with sections 751(a)(1) and rescinding this review with respect to 777(i)(1) of the Tariff Act of 1930, as AGENCY: Enforcement and Compliance, these companies in accordance with 19 amended, and 19 CFR 351.213(d)(4). International Trade Administration, CFR 351.213(d)(1). The administrative Dated: February 22, 2019. Department of Commerce. review remains active with respect to James Maeder, SUMMARY: The Department of Commerce Liang Chyuan Industrial Co., Ltd., PT (Commerce) is rescinding the Associate Deputy Assistant Secretary for Enterprise, Inc. and its affiliated Antidumping and Countervailing Duty administrative review, in part, of the producer Pro-Team Coil Nail Enterprise, Operations performing the duties of Deputy antidumping duty order on certain steel Inc. (collectively, PT); Unicatch Assistant Secretary for Antidumping and nails from Taiwan for the period July 1, Industrial Co. Ltd., Hor Liang Industrial Countervailing Duty Operations. 2017, through June 30, 2018. Corp., and Romp Coil Nail Industries Appendix DATES: Applicable February 27, 2019. Inc. FOR FURTHER INFORMATION CONTACT: Companies Rescinded From Review Irene Gorelik, AD/CVD Operations, Assessment 1. All Precision Co., Ltd. Office VIII, Enforcement and 2. Aplus Pneumatic Corp. Commerce will instruct U.S. Customs Compliance, International Trade 3. Astrotech Steels Private Ltd. Administration, Department of and Border Protection (CBP) to assess 4. Basso Industry Corporation Commerce, 1401 Constitution Avenue antidumping duties on all appropriate 5. Bonuts Hardware Logistic Co. entries at a rate equal to the cash deposit 6. Challenge Industrial Co., Ltd. NW, Washington, DC 20230; telephone: 7. Chen Yu-Lan (202) 482–6905. of estimated antidumping duties required at the time of entry, or 8. Cheng Ch International Co. Ltd. SUPPLEMENTARY INFORMATION: 9. Chia Pao Metal Co. Ltd. withdrawal from warehouse, for 10. Chite Enterprises Co., Ltd. Background consumption, during the period July 1, 11. Concord Int’s Engineer Ing & Trading On September 10, 2018, based on 2017, through June 30, 2018, in 12. Crown Run Industrial Corp. timely requests for review for 86 accordance with 19 CFR 13. Daejin Steel Company Ltd. companies by Mid Continent Steel & 351.212(c)(1)(i). Commerce intends to 14. Dragon Iron Factory Co., Ltd. issue appropriate assessment 15. Easylink Industrial Co., Ltd. Wire, Inc. (Mid Continent), a domestic 16. ECI Taiwan Co., Ltd. 1 instructions to CBP 15 days after the producer and interested party, and 17. Encore Green Co., Ltd. 2 publication of this notice in the Federal various Taiwanese companies, 18. Faithful Engineering Products Co. Ltd. Commerce published in the Federal Register. 19. Fastenal Asia Pacific Ltd. Register a notice of initiation of an Notification to Importers 20. Four Winds Corporation administrative review of the 21. Fujian Xinhong Mech. & Elec. Co., Ltd. antidumping duty order on certain steel This notice serves as a final reminder 22. Fuzhou Royal Floor Co., Ltd. nails from Taiwan covering the period to importers of their responsibility 23. Fuzhou Top Golden Import & Export Co. 3 24. General Merchandise Consolidators July 1, 2017, through June 30, 2018. under 19 CFR 351.402(f)(2) to file a 25. Ginfa World Co. Ltd. On October 5, 2018, Mid Continent certificate regarding the reimbursement 26. Gloex Company withdrew its request for administrative of antidumping duties prior to 27. Hi-Sharp Industrial Corp. Ltd. review for 80 of the 86 companies in its liquidation of the relevant entries 28. Home Value Co., Ltd. during this review period. Failure to 29. Hyup Sung Indonesia 1 See Mid Continent’s Letter, ‘‘Request for comply with this requirement could 30. Inmax Industries Sdn. Bhd. Administrative Review,’’ dated July 31, 2018. result in Commerce’s presumption that 31. Inmax Sdn. Bhd. 2 See Requests for Administrative Review, dated reimbursement of the antidumping 32. Interactive Corp. July 31, 2018, from: Romp Coil Nails Industries Inc. 33. J C Grand Corporation (barcode 3736761–01), Hor Liang Industrial Corp. duties occurred and the subsequent 34. Jade Shuttle Enterprise Co., Ltd. (barcode 3737089–01); PT Enterprise Inc. and Pro- assessment of doubled antidumping 35. Jet Crown International Co., Ltd. Team Coil Nail Enterprise, Inc. (barcode 3737101– duties. 01); and Unicatch Industrial Co., Ltd. (barcode 36. Jia Jue Industry Co. Ltd. 3737114–01). 37. Jinhai Hardware Co., Ltd. 3 See Initiation of Antidumping and 4 See Mid Continent’s Letter, ‘‘Withdrawal of 38. Jinsco International Corp. Countervailing Duty Administrative Reviews, 83 FR Request for Administrative Reviews,’’ dated 39. Korea Wire Co., Ltd. 45596 (September 10, 2018) (Initiation Notice). October 5, 2018 (Mid Continent Withdrawal Letter). 40. Linkwell Industry Co., Ltd.

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41. Locksure Inc. Administration, U.S. Department of investigations of welded pipe from 42. Lu Kang Hand Tools Industrial Co., Ltd. Commerce, 1401 Constitution Avenue China, India, Korea, and Turkey, 43. Master United Corp. NW, Washington, DC 20230; telephone: Commerce received scope comments 44. Nailermate Enterprise Corporation (202) 482–2972 or (202) 482–3906, from interested parties. Commerce 45. Newrex Screw Corporation respectively. 46. Noble Shipping Pvt. Ltd. issued a Preliminary Scope Decision 4 47. NS International Ltd. SUPPLEMENTARY INFORMATION: Memorandum to address these 48. Pacific Concord Internaional Ltd. comments. In the Preliminary 49. Panther T&H Industry Co. Background Determination, Commerce set aside a 50. Patek Tool Co., Ltd. On August 27, 2018, Commerce period of time for parties to address 51. Point Edge Corp. published in the Federal Register the scope issues in scope case and rebuttal 52. President Industrial Inc. Preliminary Determination of sales at briefs. No interested parties submitted 53. Pronto Great China Corp. LTFV of welded pipe from Turkey, in scope comments in scope case or scope 54. Region Industries Co., Ltd. which we also postponed the final rebuttal briefs. Therefore, for this final 55. Region International Co. Ltd. 1 56. Region System Sdn. Bhd. determination until January 9, 2019. determination, the scope of this 57. Shanxi Pioneer Hardware Industrial Co., We invited interested parties to investigation remains unchanged from Ltd. comment on the Preliminary that published in the Preliminary 58. Shinn Chuen Corp. Determination. A summary of the events Determination. 59. Six-2 Fastener Imports Inc. that occurred since Commerce Analysis of Comments Received 60. Star World Product and Trading Co., Ltd. published the Preliminary 61. Taiwan Shan Yin Int’l Co. Ltd. Determination, as well as a full All issues raised in the case and 62. Taiwan Wakisangyo Co. Ltd. discussion of the issues raised by parties rebuttal briefs submitted by parties in 63. Techart Mechinal Corporation for this final determination, may be this investigation are addressed in the 64. Test-Rite Int’l Co., Ltd. found in the Issues and Decision Issues and Decision Memorandum 65. Trans-Top Enterprise Co., Ltd. accompanying this notice. A list of the 66. Transworld Transporation Co., Ltd. Memorandum, which is adopted by this 2 67. Trim International Inc. notice. issues addressed in the Issues and 68. Tsi-Translink (Taiwan) Co. Ltd. Commerce exercised its discretion to Decision Memorandum is attached to 69. U-Can-Do Hardware Corp. toll all deadlines affected by the partial this notice as Appendix II. The Issues 70. UJL Industries Co., Ltd. federal government closure from and Decision Memorandum is a public 71. Universal Power Shipping Ltd. December 22, 2018, through the document and is on file electronically 72. Vanguard International Co., Ltd. resumption of operations on January 29, via Enforcement and Compliance’s 73. VIM International Enterprise Co., Ltd. 2019.3 If the new deadline falls on a Antidumping and Countervailing Duty 74. Vision Exporters non-business day, in accordance with Centralized Electronic Service System 75. Wattson Fastner Group Inc. Commerce’s practice, the deadline will (ACCESS). ACCESS is available to 76. Wictory Co. Ltd. 77. Wumax Industry Co., Ltd. become the next business day. The registered users at https:// 78. Yeh Fong Hsin revised deadline for the final access.trade.gov, and it is available to 79. Yehdyi Enterprise Co., Ltd. determination of this investigation is all parties in the Central Records Unit, 80. Yu Tai World Co., Ltd. now February 19, 2019. room B–8024 of the main Department of Commerce building. In addition, a [FR Doc. 2019–03421 Filed 2–26–19; 8:45 am] Scope of the Investigation complete version of the Issues and BILLING CODE 3510–DS–P The product covered by this Decision Memorandum can be accessed investigation is welded pipe from directly at http://enforcement.trade.gov/ DEPARTMENT OF COMMERCE Turkey. For a full description of the frn/index.html. The signed and scope of this investigation, see the electronic versions of the Issues and International Trade Administration ‘‘Scope of the Investigation’’ in Decision Memorandum are identical in Appendix I of this notice. content. [A–489–833] Scope Comments Verification Large Diameter Welded Pipe From the During the course of this investigation As provided in section 782(i) of the Republic of Turkey: Final and the concurrent LTFV investigations Tariff Act of 1930, as amended, (the Determination of Sales at Less Than of welded pipe from Canada, Greece, the Act), in September and October 2018, Fair Value Republic of Korea (Korea), and the we conducted verifications of the sales AGENCY: Enforcement and Compliance, People’s Republic of China (China), and and cost information submitted by International Trade Administration, the concurrent countervailing duty Borusan Mannesmann Boru Sanayi ve Department of Commerce. Ticaret A.S. (Borusan) and HDM Celik 1 See Large Diameter Welded Pipe from the Boru Sanayi ve Ticaret A.S. (HDM SUMMARY: The Department of Commerce Republic of Turkey: Preliminary Determination of (Commerce) determines that imports of Sales at Less Than Fair Value and Postponement Celik) for use in our final determination. large diameter welded pipe (welded of Final Determination, 83 FR 43646 (August 27, We used standard verification pipe) from the Republic of Turkey 2018) (Preliminary Determination), and procedures, including an examination of (Turkey) are being, or are likely to be, accompanying Preliminary Decision Memorandum. relevant accounting and production 2 See Memorandum, ‘‘Issues and Decision sold in the United States at less than fair records, and original source documents Memorandum for the Final Affirmative 5 value (LTFV) for the period of Determination in the Less-Than-Fair-Value provided by Borusan and HDM Celik. investigation (POI) January 1, 2017, Investigation of Large Diameter Welded Pipe from 4 through December 31, 2017. the Republic of Turkey,’’ dated concurrently with, See Memorandum, ‘‘Scope Comments Decision and hereby adopted by, this notice (Issues and Memorandum for the Preliminary Determinations,’’ DATES: Applicable February 27, 2019. Decision Memorandum). dated June 19, 2018 (Preliminary Scope Decision FOR FURTHER INFORMATION CONTACT: 3 See Memorandum, ‘‘Deadlines Affected by the Memorandum). Partial Shutdown of the Federal Government,’’ 5 For discussion of our verification findings, see Rebecca M. Janz or William Miller, AD/ dated January 28, 2019. All deadlines in this Memorandum, ‘‘Verification of the Sales Response CVD Operations, Office II, Enforcement segment of the proceeding have been extended by of Borusan Mannesmann Boru Sanayi ve Ticaret and Compliance, International Trade 40 days. A.S. (Borusan) in the Antidumping Investigation of

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Changes Since the Preliminary average dumping margin for all-other facts otherwise available. Commerce Determination producers and exporters not calculated the all-others’ rate using a Based on our analysis of the individually investigated shall be equal weighted average of the estimated comments received and our findings at to the weighted average of the estimated weighted-average dumping margins verification, we made certain changes to weighted-average dumping margins calculated for the examined respondents the margin calculations for the established for exporters and producers using each company’s publicly-ranged respondents, Borusan and HDM Celik. individually investigated excluding values for the merchandise under For a discussion of these changes, see rates that are zero, de minimis, or consideration.6 the ‘‘Margin Calculations’’ section of the determined entirely under section 776 Issues and Decision Memorandum. of the Act. In this investigation, Final Determination Commerce calculated estimated The final estimated weighted-average All-Others Rate weighted-average dumping margins for Section 735(c)(5)(A) of the Act Borusan and HDM Celik that are not dumping margins are as follows: provides that the estimated weighted- zero, de minimis, or based entirely on

Cash deposit Weighted- rate average (adjusted for Exporter or producer dumping subsidy margin offset(s)) (percent) (percent)

Borusan Mannesmann Boru Sanayi ve Ticaret A.S ...... 4.55 0.00 HDM Celik Boru Sanayi ve Ticaret A.S ...... 5.05 4.05 All Others ...... 4.68 3.68

Disclosure dumping margin as follows: (1) The Consistent with our longstanding We intend to disclose the calculations cash deposit rate for the respondents practice, where the product under performed in this final determination listed above will be equal to the investigation is also subject to a within five days of the date of respondent-specific estimated weighted- concurrent countervailing duty publication of this notice to parties in average dumping margin determined in investigation, we will instruct CBP to this proceeding in accordance with 19 this final determination; (2) if the require a cash deposit equal to the CFR 351.224(b). exporter is not a respondent identified amount by which the normal value above but the producer is, then the cash exceeds the U.S. price, less the amount Continuation of Suspension of deposit rate will be equal to the of the countervailing duty determined to Liquidation respondent-specific estimated weighted- constitute any export subsidies.8 In accordance with section average dumping margin established for Therefore, in the event that a 735(c)(1)(B) of the Act, for this final that producer of the subject countervailing duty order is issued and determination, we will direct U.S. merchandise; and (3) the cash deposit suspension of liquidation is resumed in Customs and Border Protection (CBP) to rate for all other producers and the companion countervailing duty continue to suspend liquidation of all exporters will be equal to the all-others investigation on welded pipe from entries of welded pipe, as described in estimated weighted-average dumping Turkey, Commerce will instruct CBP to Appendix I of this notice, which are margin. These suspension of liquidation require cash deposits adjusted by the entered, or withdrawn from warehouse, instructions will remain in effect until amount of export subsidies, as for consumption on or after August 27, further notice. appropriate. These adjustments are 2018, the date of publication in the Further, we will instruct CBP to reflected in the final column of the rate Federal Register of the affirmative require a cash deposit equal to the chart, above. Until such suspension of Preliminary Determination. estimated amount by which the normal liquidation is resumed in the Pursuant to section 735(c)(1)(B)(ii) of value exceeds the U.S. price as shown companion countervailing duty the Act and 19 CFR 351.210(d), we will above, adjusted where appropriate for investigation, and so long as suspension instruct CBP to require a cash deposit export subsidies found in the final of liquidation continues under this for such entries of merchandise equal to determination of the companion antidumping duty investigation, the the estimated weighted-average countervailing duty investigation.7 cash deposit rates for this antidumping

Large Diameter Welded Pipe from the Republic of average of the estimated weighted-average dumping ‘‘Calculation of the All-Others Rate for the Final Turkey,’’ dated October 22, 2018; Memorandum, margins calculated for the examined respondents; Determination,’’ dated concurrently with this ‘‘Verification of the Sales Response of HDM Celik (B) a simple average of the estimated weighted- notice. Ticaret Sanayi A.S. (HDM Celik) in the average dumping margins calculated for the 7 See Modification of Regulations Regarding the Antidumping Investigation of Large Diameter examined respondents; and (C) a weighted average Welded Pipe from the Republic of Turkey,’’ dated of the estimated weighted-average dumping margins Practice of Accepting Bonds During the Provisional October 22, 2018; Memorandum, ‘‘Verification of calculated for the examined respondents using each Measures Period in Antidumping and the Cost Response of HDM Celik Boru Sanayi ve company’s publicly-ranged U.S. sale values for the Countervailing Duty Investigations, 76 FR 61042 Ticaret A.S. in the Antidumping Duty Investigation merchandise under consideration. Commerce then (October 3, 2011). of Large Diameter Welded Pipe from the Republic compares (B) and (C) to (A) and selects the rate 8 See, e.g., Welded Line Pipe from the Republic of of Turkey,’’ dated October 22, 2018; and closest to (A) as the most appropriate rate for all Turkey: Final Determination of Sales at Less Than Memorandum, ‘‘Verification of the Cost Response of other producers and exporters. See Ball Bearings Fair Value, 80 FR 61362 (October 13, 2015); and Borusan Mannesmann Boru Sanayi ve Ticaret A.S. and Parts Thereof from France, Germany, Italy, Notice of Final Determination of Sales at Less Than (BMB), in the Antidumping Duty Investigation of Japan, and the United Kingdom: Final Results of Large Diameter Welded Pipe (LDWP) from Turkey,’’ Antidumping Duty Administrative Reviews, Final Fair Value and Negative Critical Circumstances dated November 1, 2018. Results of Changed-Circumstances Review, and Determination: Bottom Mount Combination 6 With two respondents under examination, Revocation of an Order in Part, 75 FR 53661, 53663 Refrigerator-Freezers from the Republic of Korea, 77 Commerce normally calculates (A) a weighted (September 1, 2010); see also Memorandum, FR 17413 (March 26, 2012).

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duty investigation will be the rates sections 735(d) and 777(i)(1) of the Act purposes, the written description of the identified in the estimated weighted- and 19 CFR 351.210(c). scope of this investigation is dispositive. average dumping margin column in the Dated: February 19, 2019. Appendix II rate chart, above. Gary Taverman, List of Topics Discussed in the Issues and International Trade Commission Deputy Assistant Secretary for Antidumping Decision Memorandum Notification and Countervailing Duty Operations, I. Summary In accordance with section 735(d) of performing the non-exclusive functions and II. Background duties of the Assistant Secretary for III. Scope of the Investigation the Act, we will notify the International Enforcement and Compliance. Trade Commission (ITC) of the final IV. Margin Calculations affirmative determination of sales at Appendix I V. Adjustment for Countervailable Export LTFV. In addition, we are making Subsidies Scope of the Investigation VI. Discussion of the Issues available to the ITC all non-privileged 1. Allegation of a Particular Market and non-proprietary information related The merchandise covered by this investigation is welded carbon and alloy steel Situation (PMS) in Turkey to this investigation. We will allow the pipe (including stainless steel pipe), more 2. Borusan’s U.S. Date of Sale ITC access to all privileged and business than 406.4 mm (16 inches) in nominal 3. Borusan’s Late Delivery Penalty proprietary information in our files, outside diameter (large diameter welded 4. Borusan’s Affiliated Freight Expenses provided the ITC confirms that it will pipe), regardless of wall thickness, length, 5. Borusan’s Affiliated Freight Expense not disclose such information, either surface finish, grade, end finish, or Adjustments publicly or under an administrative stenciling. Large diameter welded pipe may 6. Borusan’s Domestic Warehousing protective order (APO), without the be used to transport oil, gas, slurry, steam, or Revenue written consent of the Assistant other fluids, liquids, or gases. It may also be 7. Borusan’s Fees for Vehicle Purchases used for structural purposes, including, but 8. Errors in Borusan’s Margin Calculations Secretary for Enforcement and 9. Borusan’s Cost Reporting Compliance. Because Commerce’s final not limited to, piling. Specifically, not included is large diameter welded pipe 10. Borusan’s Surrogate COPs determination is affirmative, in produced only to specifications of the 11. HDM Celik’s Extra Revenues accordance with section 735(b)(2) of the American Water Works Association (AWWA) 12. HDM Celik’s Depreciation and Unused Act, the ITC will make its final for water and sewage pipe. Vacation Expenses determination as to whether the Large diameter welded pipe used to VII. Recommendation domestic industry in the United States transport oil, gas, or natural gas liquids is [FR Doc. 2019–03317 Filed 2–26–19; 8:45 am] is materially injured, or threatened with normally produced to the American BILLING CODE 3510–DS–P material injury, by reason of imports, or Petroleum Institute (API) specification 5L. sales (or the likelihood of sales) for Large diameter welded pipe may also be importation of welded pipe from Turkey produced to American Society for Testing DEPARTMENT OF COMMERCE and Materials (ASTM) standards A500, A252, no later than 45 days after this final or A53, or other relevant domestic International Trade Administration determination. If the ITC determines specifications, grades and/or standards. Large that such injury does not exist, this diameter welded pipe can be produced to [A–484–803] proceeding will be terminated, and all comparable foreign specifications, grades cash deposits will be refunded. If the and/or standards or to proprietary Large Diameter Welded Pipe From ITC determines that such injury does specifications, grades and/or standards, or Greece: Final Determination of Sales at exist, Commerce will issue an can be non-graded material. All pipe meeting Less Than Fair Value antidumping duty order directing CBP the physical description set forth above is to assess, upon further instruction by covered by the scope of this investigation, AGENCY: Enforcement and Compliance, whether or not produced according to a Commerce, antidumping duties on all International Trade Administration, particular standard. Department of Commerce. imports of the subject merchandise Subject merchandise also includes large entered, or withdrawn from warehouse, diameter welded pipe that has been further SUMMARY: The Department of Commerce for consumption on or after the effective processed in a third country, including but (Commerce) determines that imports of date of the suspension of liquidation, as not limited to coating, painting, notching, large diameter welded pipe (welded discussed above in the ‘‘Continuation of beveling, cutting, punching, welding, or any pipe) from Greece are being, or are Suspension of Liquidation’’ section. other processing that would not otherwise likely to be, sold in the United States at remove the merchandise from the scope of Notification Regarding Administrative less than fair value (LTFV) for the the investigation if performed in the country period of investigation (POI) January 1, Protective Orders of manufacture of the in-scope large diameter 2017, through December 31, 2017. This notice serves as a reminder to welded pipe. Excluded from the scope are any products DATES: Applicable February 27, 2019. parties subject to an administrative covered by the existing antidumping duty FOR FURTHER INFORMATION CONTACT: protective order (APO) of their order on welded line pipe from the Republic responsibility concerning the Brittany Bauer, AD/CVD Operations, of Turkey. See Welded Line Pipe from the Office II, Enforcement and Compliance, disposition of proprietary information Republic of Korea and the Republic of disclosed under APO in accordance Turkey: Antidumping Duty Orders, 80 FR International Trade Administration, with 19 CFR 351.305(a)(3). Timely 75056 (December 1, 2015). U.S. Department of Commerce, 1401 written notification of return or The large diameter welded pipe that is Constitution Avenue NW, Washington, destruction of APO materials, or subject to this investigation is currently DC 20230; telephone: (202) 482–3860. conversion to judicial protective order, classifiable in the Harmonized Tariff SUPPLEMENTARY INFORMATION: Schedule of the United States (HTSUS) under is hereby requested. Failure to comply subheadings 7305.11.1030, 7305.11.1060, Background with the regulations and the terms of an 7305.11.5000, 7305.12.1030, 7305.12.1060, On August 27, 2018, Commerce APO is a sanctionable violation. 7305.12.5000, 7305.19.1030, 7305.19.1060, published in the Federal Register the Notification to Interested Parties 7305.19.5000, 7305.31.4000, 7305.31.6010, 7305.31.6090, 7305.39.1000 and Preliminary Determination of sales at This determination and this notice are 7305.39.5000. While the HTSUS subheadings LTFV of welded pipe from Greece, in issued and published pursuant to are provided for convenience and customs which we also postponed the final

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determination until January 9, 2019.1 Determination, Commerce set aside a Changes Since the Preliminary We invited interested parties to period of time for parties to address Determination comment on the Preliminary scope issues in scope case and rebuttal Based on our analysis of the Determination. A summary of the events briefs. No interested parties submitted comments received and our findings at that occurred since Commerce scope comments in scope case or scope verification, we made certain changes to published the Preliminary rebuttal briefs. Therefore, for this final the margin calculations for the Determination, as well as a full determination, the scope of this respondent. For a discussion of these discussion of the issues raised by parties investigation remains unchanged from changes, see the ‘‘Margin Calculations’’ for this final determination, may be that published in the Preliminary section of the Issues and Decision found in the Issues and Decision Determination. Memorandum. Memorandum, which is adopted by this notice.2 Analysis of Comments Received All-Others Rate Commerce exercised its discretion to Section 735(c)(5)(A) of the Act toll all deadlines affected by the partial All issues raised in the case and provides that the estimated weighted- federal government closure from rebuttal briefs submitted by parties in average dumping margin for all-other December 22, 2018, through the this investigation are addressed in the producers and exporters not resumption of operations on January 29, Issues and Decision Memorandum individually investigated shall be equal 2019.3 If the new deadline falls on a accompanying this notice. A list of the to the weighted average of the estimated non-business day, in accordance with issues addressed in the Issues and weighted-average dumping margins Commerce’s practice, the deadline will Decision Memorandum is attached to established for exporters and producers become the next business day. The this notice as Appendix II. The Issues revised deadline for the final individually investigated excluding and Decision Memorandum is a public rates that are zero, de minimis, or determination of this investigation is document and is on file electronically now February 19, 2019. determined entirely under section 776 via Enforcement and Compliance’s of the Act. Corinth is the only Scope of the Investigation Antidumping and Countervailing Duty respondent for which Commerce The product covered by this Centralized Electronic Service System calculated an estimated weighted- investigation is welded pipe from (ACCESS). ACCESS is available to average dumping margin that is not Greece. For a full description of the registered users at https:// zero, de minimis, or based entirely on scope of this investigation, see the access.trade.gov, and it is available to facts otherwise available. Therefore, for ‘‘Scope of the Investigation’’ in all parties in the Central Records Unit, purposes of determining the ‘‘all-others’’ Appendix I of this notice. room B–8024 of the main Department of rate, and pursuant to section Commerce building. In addition, a 735(c)(5)(A) of the Act, we are using the Scope Comments complete version of the Issues and estimated weighted-average dumping During the course of this investigation Decision Memorandum can be accessed margin calculated for Corinth, as and the concurrent LTFV investigations directly at http://enforcement.trade.gov/ referenced in the ‘‘Final Determination’’ of welded pipe from Canada, the frn/index.html. The signed and section below. Republic of Korea (Korea), the People’s electronic versions of the Issues and Final Determination Republic of China (China), and the Decision Memorandum are identical in Republic of Turkey (Turkey), and the The final estimated weighted-average content. concurrent countervailing duty dumping margins are as follows: investigations of welded pipe from Verification China, India, Korea, and Turkey, Weighted- Commerce received scope comments As provided in section 782(i) of the average Exporter or producer dumping from interested parties. Commerce Tariff Act of 1930, as amended, (the Act) margin issued a Preliminary Scope Decision from September to October 2018, we (percent) Memorandum 4 to address these conducted verification of the sales and comments. In the Preliminary cost information submitted by Corinth Corinth Pipeworks Pipe Industry Pipeworks Pipe Industry S.A. (Corinth) S.A ...... 9.96 1 See Large Diameter Welded Pipe from Greece: for use in our final determination. We All Others ...... 9.96 Preliminary Affirmative Determination of Sales at used standard verification procedures, Less Than Fair Value and Postponement of Final Disclosure Determination, 83 FR 43640 (August 27, 2018) including an examination of relevant (Preliminary Determination) and accompanying accounting and production records, and We intend to disclose the calculations Preliminary Decision Memorandum. See also Large performed in this final determination Diameter Welded Pipe from Greece: Amended original source documents provided by Preliminary Determination of Sales at Less Than Corinth.5 within five days of the date of Fair Value, 83 FR 48795 (September 27, 2018). publication of this notice to parties in 2 See Memorandum, ‘‘Issues and Decision 5 For discussion of our verification findings, see this proceeding in accordance with 19 Memorandum for the Final Affirmative the following memoranda: Memorandum, CFR 351.224(b). Determination in the Less-Than-Fair-Value ‘‘Verification of the Sales Response of CPW Investigation of Large Diameter Welded Pipe from Continuation of Suspension of Greece,’’ dated concurrently with, and hereby America Co. in the Antidumping Duty Investigation adopted by, this notice (Issues and Decision of Large Diameter Welded Pipe from Greece,’’ dated Liquidation Memorandum). October 24, 2018; Memorandum, ‘‘Verification of In accordance with section 3 See Memorandum, ‘‘Deadlines Affected by the the Cost Response of Corinth Pipeworks Pipe Partial Shutdown of the Federal Government,’’ Industry S.A. in the Less-than-Fair-Value 735(c)(1)(B) of the Act, for this final dated January 28, 2019. All deadlines in this Investigation of Large Diameter Welded Pipe from determination, we will direct U.S. segment of the proceeding have been extended by Greece,’’ dated October 26, 2018; and Customs and Border Protection (CBP) to 40 days. Memorandum, ‘‘Verification of the Sales Response continue to suspend liquidation of all 4 See Memorandum, ‘‘Scope Comments Decision of Corinth Pipeworks Pipe Industry S.A. in the entries of welded pipe, as described in Memorandum for the Preliminary Determinations,’’ Antidumping Duty Investigation of Large Diameter dated June 19, 2018 (Preliminary Scope Decision Welded Pipe from Greece,’’ dated November 5, Appendix I of this notice, which are Memorandum). 2018. entered, or withdrawn from warehouse,

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for consumption on or after August 27, for consumption on or after the effective processed in a third country, including but 2018, the date of publication in the date of the suspension of liquidation, as not limited to coating, painting, notching, Federal Register of the affirmative discussed above in the ‘‘Continuation of beveling, cutting, punching, welding, or any Preliminary Determination. other processing that would not otherwise Suspension of Liquidation’’ section. remove the merchandise from the scope of Pursuant to section 735(c)(1)(B)(ii) of the investigation if performed in the country the Act and 19 CFR 351.210(d), we will Notification Regarding Administrative Protective Orders of manufacture of the in-scope large diameter instruct CBP to require a cash deposit welded pipe. for such entries of merchandise equal to This notice serves as a reminder to The large diameter welded pipe that is the estimated weighted-average parties subject to an administrative subject to this investigation is currently dumping margin as follows: (1) The protective order (APO) of their classifiable in the Harmonized Tariff cash deposit rate for the respondents responsibility concerning the Schedule of the United States (HTSUS) under listed above will be equal to the disposition of proprietary information subheadings 7305.11.1030, 7305.11.1060, 7305.11.5000, 7305.12.1030, 7305.12.1060, respondent-specific estimated weighted- disclosed under APO in accordance 7305.12.5000, 7305.19.1030, 7305.19.1060, average dumping margin determined in with 19 CFR 351.305(a)(3). Timely 7305.19.5000, 7305.31.4000, 7305.31.6010, this final determination; (2) if the written notification of return or 7305.31.6090, 7305.39.1000 and exporter is not a respondent identified destruction of APO materials, or 7305.39.5000. While the HTSUS subheadings above but the producer is, then the cash conversion to judicial protective order, are provided for convenience and customs deposit rate will be equal to the is hereby requested. Failure to comply purposes, the written description of the respondent-specific estimated weighted- with the regulations and the terms of an scope of this investigation is dispositive. average dumping margin established for APO is a sanctionable violation. Appendix II that producer of the subject merchandise; and (3) the cash deposit Notification to Interested Parties List of Topics Discussed in the Issues and rate for all other producers and This determination and this notice are Decision Memorandum exporters will be equal to the all-others issued and published pursuant to I. Summary estimated weighted-average dumping sections 735(d) and 777(i)(1) of the Act II. Background and 19 CFR 351.210(c). III. Scope of the Investigation margin. These suspension of liquidation IV. Margin Calculations instructions will remain in effect until Dated: February 19, 2019. V. Discussion of the Issues further notice. Gary Taverman, 1. Adverse Facts Available International Trade Commission Deputy Assistant Secretary for Antidumping 2. Date of Sale and Countervailing Duty Operations, 3. Constructed Export Price Offset Notification 4. Freight Revenue Offset performing the non-exclusive functions and 5. Sales to Noble In accordance with section 735(d) of duties of the Assistant Secretary for 6. Cost Verification Findings the Act, we will notify the International Enforcement and Compliance. Trade Commission (ITC) of the final VI. Recommendation affirmative determination of sales at Appendix I [FR Doc. 2019–03315 Filed 2–26–19; 8:45 am] LTFV. In addition, we are making Scope of the Investigation BILLING CODE 3510–DS–P available to the ITC all non-privileged The merchandise covered by this and non-proprietary information related investigation is welded carbon and alloy steel to this investigation. We will allow the pipe (including stainless steel pipe), more DEPARTMENT OF COMMERCE ITC access to all privileged and business than 406.4 mm (16 inches) in nominal proprietary information in our files, outside diameter (large diameter welded International Trade Administration pipe), regardless of wall thickness, length, provided the ITC confirms that it will Fermi Research Alliance, LLC., et al.; not disclose such information, either surface finish, grade, end finish, or stenciling. Large diameter welded pipe may Notice of Decision on Application for publicly or under an administrative Duty-Free Entry of Scientific protective order (APO), without the be used to transport oil, gas, slurry, steam, or other fluids, liquids, or gases. It may also be Instruments written consent of the Assistant used for structural purposes, including, but Secretary for Enforcement and not limited to, piling. Specifically, not This is a decision pursuant to Section Compliance. Because Commerce’s final included is large diameter welded pipe 6(c) of the Educational, Scientific, and determination is affirmative, in produced only to specifications of the Cultural Materials Importation Act of accordance with section 735(b)(2) of the American Water Works Association (AWWA) 1966 (Pub. L. 89–651, as amended by Act, the ITC will make its final for water and sewage pipe. Pub. L. 106–36; 80 Stat. 897; 15 CFR determination as to whether the Large diameter welded pipe used to part 301). Related records can be viewed domestic industry in the United States transport oil, gas, or natural gas liquids is between 8:30 a.m. and 5:00 p.m. in is materially injured, or threatened with normally produced to the American Room 3720, U.S. Department of material injury, by reason of imports, or Petroleum Institute (API) specification 5L. Large diameter welded pipe may also be Commerce, 14th and Constitution Ave. sales (or the likelihood of sales) for produced to American Society for Testing NW, Washington, DC importation of welded pipe from Greece and Materials (ASTM) standards A500, A252, Docket Number: 18–006. Applicant: no later than 45 days after this final or A53, or other relevant domestic Fermi Research Alliance, LLC., Batavia, determination. If the ITC determines specifications, grades and/or standards. Large IL 60510. Instrument: Short Baseline that such injury does not exist, this diameter welded pipe can be produced to Near Detector (SBND) Liquid Argon proceeding will be terminated and all comparable foreign specifications, grades Time Projection Chamber (LArTPC). cash deposits will be refunded. If the and/or standards or to proprietary Manufacturer: The Scientific Facilities ITC determines that such injury does specifications, grades and/or standards, or Research Council (STFC), United exist, Commerce will issue an can be non-graded material. All pipe meeting Kingdom. Intended Use: See notice at 83 the physical description set forth above is antidumping duty order directing CBP covered by the scope of this investigation, FR 62838, December 6, 2018. to assess, upon further instruction by whether or not produced according to a Comments: None received. Decision: Commerce, antidumping duties on all particular standard. Approved. We know of no instruments imports of the subject merchandise Subject merchandise also includes large of equivalent scientific value to the entered, or withdrawn from warehouse, diameter welded pipe that has been further foreign instruments described below, for

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such purposes as this is intended to be DEPARTMENT OF COMMERCE respondents and all other producers/ used, that was being manufactured in exporters. The Issues and Decision the United States at the time of order. International Trade Administration Memorandum is a public document and Reasons: The instrument will be used [C–489–834] is on file electronically via Enforcement for a basic scientific research project and Compliance’s Antidumping and that will study neurtrinos, a type of Large Diameter Welded Pipe From the Countervailing Duty Centralized elementary particle. There are three Republic of Turkey: Final Affirmative Electronic Service System (ACCESS). known types of neutrinos in the Countervailing Duty Determination ACCESS is available to registered users universe, although there could be more at http://access.trade.gov, and is that have not yet been observed. The AGENCY: Enforcement and Compliance, available to all parties in the Central phenomena to be studied are the International Trade Administration, Records Unit, room B8024 of the main number of neutrino types and Department of Commerce. Department of Commerce building. In interaction cross-sections for the SUMMARY: The Department of Commerce addition, a complete version of the currently known neutrino types. Two (Commerce) determines that Issues and Decision Memorandum can detectors are required to perform the countervailable subsidies are being be accessed directly at http:// neutrino oscillation studies: The Short provided to producers and exporters of enforcement.trade.gov/frn/index.html. Baseline Near Detector (SBND) is one of large diameter welded pipe (welded The signed Issues and Decision these detectors. The primary objective of pipe) from the Republic of Turkey Memorandum and the electronic the SBN program is to look for evidence (Turkey). version of the Issues and Decision of neutrino oscillations, over distances DATES: Applicable February 27, 2019. Memorandum are identical in content. Commerce exercised its discretion to of 1 kilometer or less, and if found to FOR FURTHER INFORMATION CONTACT: Ross toll all deadlines affected by the partial measure the oscillation parameters. The Belliveau or Ajay Menon, AD/CVD federal government closure from SBND TPC is a complex and unique Operations, Office II, Enforcement and December 22, 2018, through the instrument. Justification for Duty-Free Compliance, International Trade resumption of operations on January 29, Entry: There are no instruments of the Administration, U.S. Department of 2019.3 same general category manufactured in Commerce, 1401 Constitution Avenue If the new deadline falls on a the United States. NW, Washington, DC 20230; telephone: non-business day, in accordance with Docket Number: 18–008. Applicant: (202) 482–4952, or (202) 482–1993, Commerce’s practice, the deadline will Lawrence Berkeley National Laboratory, respectively. become the next business day. The revised deadline for the final Berkeley, CA 94720. Instrument: In SUPPLEMENTARY INFORMATION: Vacuum Insertion Device (aka determination of this investigation is Undulator). Manufacturer: Hitachi Background now February 19, 2019. Metals America, LLC, Japan. Intended The petitioners in this investigation Period of Investigation Use: See notice at 83 FR 62838, are American Cast Iron Pipe Company, The period of investigation is January December 6, 2018. Comments: None Berg Steel Pipe Corp./Berg Spiral Pipe 1, 2017, through December 31, 2017. received. Decision: Approved. We know Corp, Dura-Bond Industries, Skyline of no instruments of equivalent Steel, Stupp Corporation, Greens Bayou Scope of the Investigation scientific value to the foreign Pipe Mill, LP, JSW Steel (USA) Inc., and The scope of the investigation is instruments described below, for such Trinity Products LLC (collectively, the welded pipe from Turkey. For a purposes as this is intended to be used, petitioners). In addition to the complete description of the scope of the that was being manufactured in the Government of Turkey, the mandatory investigation, see Appendix I. United States at the time of order. respondents in this investigation are Scope Comments Reasons: The instrument will be Borusan Mannesmann Boru Sanayi ve installed in Sector 2.0 of the Advanced Ticaret A.S. (Borusan) and HDM Celik During the course of this investigation Light Source (ALS) facility at Lawrence Boru Sanayi ve Ticaret A.S. (HDM and the concurrent less-than-fair-value Berkeley Laboratory, for use as a high Celik). investigations of large diameter welded brightness beamline source for the The events that occurred since pipe from Canada, Greece, Korea, the sector. Sector 2.0 of the ALS is Commerce published the Preliminary People’s Republic of China (China), and dedicated to the study and analysis of Determination 1 on June 29, 2018, are Turkey, and the concurrent protein crystallography. The objectives discussed in the Issues and Decision countervailing duty (CVD) pursued are to determine the atomic- Memorandum, which is hereby adopted investigations of large diameter welded resolution, three-dimensional structures by this notice.2 The Issues and Decision pipe from China, India, Korea, and of proteins and nucleic acids-the Memorandum also details the changes Turkey, Commerce received scope building blocks of life-as well as we made since the Preliminary comments from interested parties. complexes of these molecules, the Determination to the subsidy rates Commerce issued a Preliminary Scope interactions of which give rise to calculated for the mandatory Decision Memorandum to address these biological processes. Justification for comments.4 In the Preliminary Duty-Free Entry: There are no 1 See Large Diameter Welded Pipe from the instruments of the same general Republic of Turkey: Preliminary Affirmative 3 See memorandum to the Record from Gary category manufactured in the United Countervailing Duty Determination and Alignment Taverman, Deputy Assistant Secretary for of Final Determination with Final Antidumping Antidumping and Countervailing Duty Operations, States. Duty Determination, 83 FR 30697 (June 29, 2018) performing the non-exclusive functions and duties Dated: February 22, 2019. (Preliminary Determination), and accompanying of the Assistant Secretary for Enforcement and Preliminary Decision Memorandum. Compliance, ‘‘Deadlines Affected by the Partial Gregory W. Campbell, 2 See Memorandum, ‘‘Issues and Decision Shutdown of the Federal Government,’’ dated Director, Subsidies Enforcement, Enforcement Memorandum for the Final Determination in the January 28, 2019. All deadlines in this segment of and Compliance. Countervailing Duty Investigation of Large Diameter the proceeding have been extended by 40 days. Welded Pipe from the Republic of Turkey,’’ dated 4 See Memorandum, ‘‘Scope Comments Decision [FR Doc. 2019–03423 Filed 2–26–19; 8:45 am] concurrently with this determination (Issues and Memorandum for the Preliminary Determinations,’’ BILLING CODE 3510–DS–P Decision Memorandum). Continued

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Determination, Commerce set aside a Changes Since the Preliminary to parties in this proceeding in period of time for parties to address Determination accordance with 19 CFR 351.224(b). scope issues in scope case and rebuttal Based on our review and analysis of 5 Continuation of Suspension of briefs. No interested parties submitted the comments received from parties and Liquidation comments regarding the Preliminary corrections presented at verification, we As a result of our Preliminary Scope Decision Memorandum. made certain changes to the Determination and pursuant to section Therefore, for this final determination, respondents’ subsidy rate calculations. 703(d)(1)(B) and (d)(2) of the Act, the scope of this investigation remains As a result of these changes, Commerce Commerce instructed U.S. Customs and unchanged from that published in the has also revised the ‘‘all-others’’ rate. Border Protection (CBP) to suspend Preliminary Determination. For a discussion of these changes, see liquidation of entries of subject the Issues and Decision Memorandum Analysis of Subsidy Programs and merchandise as described in the scope and the Final Analysis Memoranda.8 Comments Received of the investigation section entered, or Final Determination withdrawn from warehouse, for The subsidy programs under In accordance with section consumption on or after the date of investigation and the issues raised in 705(c)(1)(B)(i)(I) of the Act, we publication of the Preliminary the case and rebuttal briefs by parties in calculated a rate for Borusan and HDM Determination in the Federal Register. this investigation are discussed in the Celik. Section 705(c)(5)(A)(i) of the Act In accordance with section 703(d) of the Issues and Decision Memorandum. A states that, for companies not Act, we issued instructions to CBP to list of the issues that parties raised, and individually investigated, we will discontinue the suspension of to which we responded in the Issues determine an ‘‘all others’’ rate equal to liquidation for CVD purposes for subject and Decision Memorandum, is attached the weighted-average countervailable merchandise entered, or withdrawn to this notice as Appendix II. subsidy rates established for exporters from warehouse, on or after October 26, 2018, but to continue the suspension of Methodology and producers individually investigated, excluding any zero and de liquidation of all entries from June 29, Commerce conducted this minimis countervailable subsidy rates, 2018, through October 25, 2018. If the U.S. International Trade investigation in accordance with section and any rates determined entirely under Commission (ITC) issues a final 701 of the Tariff Act of 1930, as section 776 of the Act. In the final affirmative injury determination, we amended (the Act). For each of the determination of this investigation, Commerce calculated a de minimis rate will issue a CVD order, reinstate the subsidy programs found suspension of liquidation under section countervailable, Commerce determines for Borusan. Therefore, the only rate that is not zero, de minimis, or based 706(a) of the Act, and require a cash that there is a subsidy, i.e., a financial deposit of estimated countervailing contribution by an ‘‘authority’’ that entirely on facts otherwise available is the rate calculated for HDM Celik. duties for such entries of subject gives rise to a benefit to the recipient, merchandise in the amounts indicated 6 Consequently, the rate calculated for and that the subsidy is specific. For a above. If the ITC determines that full description of the methodology HDM Celik is also assigned as the rate for ‘‘all other’’ producers and exporters. material injury, or threat of material underlying our final determination, see injury, does not exist, this proceeding the Issues and Decision Memorandum. Commerce determines the total estimated net countervailable subsidy will be terminated and all estimated Verification rates to be: duties deposited or securities posted as a result of the suspension of liquidation As provided in section 782(i) of the Subsidy rate will be refunded or canceled. Company (percent) Tariff Act of 1930, as amended (the Act), ITC Notification during July 2018, Commerce verified the subsidy information reported by the HDM C¸ elik Boru Sanayi ve In accordance with section 705(d) of Ticaret A.S 9 ...... 3.72 Government of Turkey, Borusan, and the Act, we will notify the ITC of our Borusan Mannesmann Boru determination. In addition, we are HDM Celik. We used standard 10 Sanayi ve Ticaret A.S ... * 0.92 making available to the ITC all non- verification procedures, including an All-Others ...... 3.72 examination of relevant accounting privileged and non-proprietary records and original source documents *(de minimis) information related to this investigation. provided by the respondents.7 Disclosure We will allow the ITC access to all privileged and business proprietary Commerce will disclose the information in our files, provided the dated June 19, 2018 (Preliminary Scope Decision calculations performed within five days Memorandum). ITC confirms that it will not disclose 5 See Large Diameter Welded Pipe from the of the date of publication of this notice such information, either publicly or Republic of Turkey: Preliminary Determination of under an administrative protective order Sales at Less than Fair Value and Postponement of 8 See Memoranda: ‘‘Countervailing Duty (APO), without the written consent of Final Determination, 83 FR 43646 (August 27, Investigation of Large Diameter Welded Pipe from 2018). Turkey: Final Determination Calculation the Assistant Secretary for Enforcement 6 See sections 771(5)(B) and (D) of the Act Memorandum for Borusan,’’ dated concurrently and Compliance. regarding financial contribution; section 771(5)(E) with this notice; and ‘‘Countervailing Duty Because the final determination in of the Act regarding benefit; and section 771(5A) of Investigation of Large Diameter Welded Pipe from this proceeding is affirmative, in the Act regarding specificity. Turkey: Final Determination Calculation accordance with section 705(b) of the 7 See Memoranda: ‘‘Verification of the Memorandum for HDM Celik,’’ dated concurrently Questionnaire Responses of the Government of with this notice. Act, the ITC will make its final Turkey (GOT),’’ dated September 17, 2018; 9 Commerce found the following company to be determination as to whether the ‘‘Verification of the Questionnaire Responses of cross-owned with HDM Celik: HDM Spiral Kaynakli domestic industry in the United States Verification of the Questionnaire Responses of Celik Boru A.S. is materially injured, or threatened with Borusan Mannesmann Boru Sanayi ve Ticaret A.S. 10 Commerce found the following companies to be (Borusan),’’ dated October 2, 2018; and cross-owned with Borusan: Borusan Mannesmann material injury, by reason of imports of ‘‘Verification of the Questionnaire Responses of Boru Yatirim Holding A.S., and Borusan Holding welded pipe from Turkey no later than HDM Celik (HDM Celik),’’ dated October 5, 2018. A.S. 45 days after our final determination. If

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the ITC determines that material injury and Materials (ASTM) standards A500, A252, Comment 4: Deducting Guarantee Fees in or threat of material injury does not or A53, or other relevant domestic Calculating the Benefit for the exist, the proceeding will be terminated specifications, grades and/or standards. Large Rediscount Program and all cash deposits will be refunded. diameter welded pipe can be produced to Comment 5: Verification Corrections for If the ITC determines that such injury comparable foreign specifications, grades Borusan and HDM Celik VI. Recommendation does exist, Commerce will issue a CVD and/or standards or to proprietary specifications, grades and/or standards, or order directing CBP to assess, upon [FR Doc. 2019–03344 Filed 2–26–19; 8:45 am] can be non-graded material. All pipe meeting BILLING CODE 3510–DS–P further instruction by Commerce, the physical description set forth above is countervailing duties on all imports of covered by the scope of this investigation, the subject merchandise, other than whether or not produced according to a DEPARTMENT OF COMMERCE those produced and exported by particular standard. Borusan because its rate is de minimis, Subject merchandise also includes large International Trade Administration that are entered, or withdrawn from diameter welded pipe that has been further warehouse, for consumption on or after processed in a third country, including but [C–580–898] the effective date of the suspension of not limited to coating, painting, notching, liquidation, as discussed above in the beveling, cutting, punching, welding, or any Large Diameter Welded Pipe From the ‘‘Continuation of Suspension of other processing that would not otherwise Republic of Korea: Final Affirmative Liquidation’’ section. remove the merchandise from the scope of the investigation if performed in the country Countervailing Duty Determination Notification Regarding Administrative of manufacture of the in-scope large diameter AGENCY: Enforcement and Compliance, Protective Orders welded pipe. International Trade Administration, Excluded from the scope are any products Department of Commerce. In the event that the ITC issues a final covered by the existing countervailing duty negative injury determination, this order on welded line pipe from the Republic SUMMARY: The Department of Commerce notice will serve as the only reminder of Turkey. See Welded Line Pipe from the (Commerce) determines that to parties subject to the APO of their Republic of Turkey: Countervailing Duty countervailable subsidies are being responsibility concerning the Order, 80 FR 75054 (December 1, 2015). provided to producers and exporters of destruction of proprietary information The large diameter welded pipe that is large diameter welded pipe (welded disclosed under APO in accordance subject to this investigation is currently pipe) from the Republic of Korea with 19 CFR 351.305(a)(3). Timely classifiable in the Harmonized Tariff (Korea). For information on the written notification of the return/ Schedule of the United States (HTSUS) under estimated subsidy rates, see the ‘‘Final destruction of APO materials or subheadings 7305.11.1030, 7305.11.1060, Determination’’ section of this notice. conversion to judicial protective order is 7305.11.5000, 7305.12.1030, 7305.12.1060, 7305.12.5000, 7305.19.1030, 7305.19.1060, DATES: Applicable February 27, 2019. hereby requested. Failure to comply 7305.19.5000, 7305.31.4000, 7305.31.6010, FOR FURTHER INFORMATION CONTACT: with the regulations and terms of an 7305.31.6090, 7305.39.1000 and George Ayache or Robert Palmer, AD/ APO is a violation which is subject to 7305.39.5000. While the HTSUS subheadings CVD Operations, Office VIII, sanction. are provided for convenience and customs This determination is issued and Enforcement and Compliance, purposes, the written description of the International Trade Administration, published pursuant to sections 705(d) scope of this investigation is dispositive. and 777(i) of the Act. U.S. Department of Commerce, 1401 Appendix II Constitution Avenue NW, Washington, Dated: February 19, 2019. DC 20230; telephone: (202) 482–2623 or Gary Taverman, List of Topics Discussed in the Issues and Decision Memorandum (202) 482–9068, respectively. Deputy Assistant Secretary for Antidumping SUPPLEMENTARY INFORMATION: and Countervailing Duty Operations, I. Summary performing the non-exclusive functions and II. Background Background duties of the Assistant Secretary for Case History Enforcement and Compliance. Period of Investigation The petitioners in this investigation Scope of the Investigation are American Cast Iron Pipe Company, Appendix I III. Subsidies Valuation Information Berg Steel Pipe Corp./Berg Spiral Pipe Scope of the Investigation A. Allocation Period Corp, Dura-Bond Industries, Skyline B. Attribution of Subsidies Steel, Stupp Corporation, Greens Bayou The merchandise covered by this C. Denominators investigation is welded carbon and alloy steel Pipe Mill, LP, JSW Steel (USA) Inc., and D. Loan Interest Rate Benchmarks and Trinity Products LLC (collectively, the pipe (including stainless steel pipe), more Discount Rates than 406.4 mm (16 inches) in nominal IV. Analysis of Programs petitioners). In addition to the outside diameter (large diameter welded A. Programs Determined to Be Government of Korea (GOK), the pipe), regardless of wall thickness, length, Countervailable mandatory respondents in this surface finish, grade, end finish, or B. Programs Determined Not To Provide investigation are Husteel Co., Ltd. stenciling. Large diameter welded pipe may (Husteel), Hyundai Steel Company be used to transport oil, gas, slurry, steam, or Countervailable Benefits During the POI other fluids, liquids, or gases. It may also be C. Programs Determined Not To Be Used (Hyundai Steel), and SeAH Steel used for structural purposes, including, but During the POI Corporation (SeAH Steel). not limited to, piling. Specifically, not D. Programs Determined To Be Not The events that occurred since included is large diameter welded pipe Countervailable in this Investigation Commerce published the Preliminary produced only to specifications of the V. Analysis of Comments Determination 1 on June 29, 2018, are American Water Works Association (AWWA) Comment 1: Using Production Data Provided by the Government of Turkey for water and sewage pipe. 1 Large diameter welded pipe used to in Analysis of Market Distortion See Large Diameter Welded Pipe from India: Comment 2: The Appropriate Methodology Preliminary Affirmative Countervailing Duty transport oil, gas, or natural gas liquids is Determination and Alignment of Final normally produced to the American To Calculate a ‘‘Tier 2’’ Benchmark Determination with Final Antidumping Duty Petroleum Institute (API) specification 5L. Comment 3: Application of Adverse Facts Determination, 83 FR 30690 (June 29, 2018) Large diameter welded pipe may also be Available to the Deduction From Taxable (Preliminary Determination), and accompanying produced to American Society for Testing Income for Export Revenue Program Preliminary Decision Memorandum.

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discussed in the Issues and Decision People’s Republic of China (China) and information, see ‘‘Use of Facts Memorandum, which is hereby adopted Turkey, and the concurrent Otherwise Available and Adverse by this notice.2 The Issues and Decision countervailing duty (CVD) Inferences’’ in the Issues and Decision Memorandum also details the changes investigations of large diameter welded Memorandum. we made since the Preliminary pipe from China, India, Korea and Verification Determination to the subsidy rates Turkey, Commerce received scope calculated for the mandatory comments from interested parties. As provided in section 782(i) of the respondents and all other producers/ Commerce issued a Preliminary Scope Act, during September 2018, Commerce exporters. The Issues and Decision Decision Memorandum 4 to address verified the subsidy information Memorandum is a public document and these comments. In the Preliminary reported by the GOK, Husteel, Hyundai is on file electronically via Enforcement Determination, Commerce set aside a Steel, and SeAH Steel. We used and Compliance’s Antidumping and period of time for parties to address standard verification procedures, Countervailing Duty Centralized scope issues in scope case and rebuttal including an examination of relevant Electronic Service System (ACCESS). briefs.5 No interested parties submitted accounting records and original source ACCESS is available to registered users comments regarding the Preliminary documents provided by the 8 at http://access.trade.gov, and is Scope Decision Memorandum. respondents. available to all parties in the Central Therefore, for this final determination, Changes Since the Preliminary Records Unit, Room B8024 of the main the scope of this investigation remains Determination Department of Commerce building. In unchanged from that published in the Based on our review and analysis of addition, a complete version of the Preliminary Determination. Issues and Decision Memorandum can the comments received from parties, be accessed directly at http:// Analysis of Subsidy Programs and verification, and the minor corrections enforcement.trade.gov/frn/index.html. Comments Received presented at verification, we made The signed and electronic versions of The subsidy programs under certain changes to the respondents’ the Issues and Decision Memorandum investigation and the issues raised in subsidy rate calculations. As a result of are identical in content. the case and rebuttal briefs by parties in these changes, Commerce has also Commerce exercised its discretion to this investigation are discussed in the revised the ‘‘all-others’’ rate. For a toll all deadlines affected by the partial Issues and Decision Memorandum. A discussion of these changes, see the federal government closure from list of the issues that parties raised, and Issues and Decision Memorandum. December 22, 2018, through the to which we responded in the Issues Final Determination resumption of operations on January 29, and Decision Memorandum, is attached In accordance with section 2019.3 If the new deadline falls on a to this notice at Appendix II. non-business day, in accordance with 705(c)(l)(B)(i) of the Act, we calculated Commerce’s practice, the deadline will Methodology a rate for Husteel and Hyundai Steel, two producers/exporters of subject become the next business day. The Commerce conducted this merchandise selected for individual revised deadline for the final investigation in accordance with section examination in this investigation. determination of this investigation is 701 of the Tariff Act of 1930, as Commerce assigned a rate based entirely now February 19, 2019. amended (the Act). For each of the on facts otherwise available with subsidy programs found Period of Investigation adverse inferences pursuant to section countervailable, Commerce determines 776 of the Act to SeAH Steel. The period of investigation is January that there is a subsidy, i.e. , a financial 1, 2017, through December 31, 2017. Section 705(c)(5)(A) of the Act contribution by an ‘‘authority’’ that provides that in the final determination, Scope of the Investigation gives rise to a benefit to the recipient, Commerce shall determine an estimated and that the subsidy is specific.6 For a The product covered by this all-others rate for companies not full description of the methodology investigation is welded pipe from Korea. individually examined. This rate shall underlying our final determination, see For a full description of the scope of this be an amount equal to the weighted the Issues and Decision Memorandum. average of the estimated subsidy rates investigation, see the ‘‘Scope of the In making these findings, Commerce established for those companies Investigation’’ in Appendix I of this relied, in part, on facts available. individually examined, excluding any notice. Further, because one or more zero and de minimis rates and any rates respondents did not act to the best of Scope Comments based entirely under section 776 of the their ability to respond to Commerce’s During the course of this investigation Act. Where the rates for the individually requests for information, an adverse and the concurrent less-than-fair-value investigated companies are all zero or inference was drawn, where investigations of large diameter welded de minimis , or determined entirely appropriate, in selecting from among the pipe from Canada, Greece, Korea, the using facts otherwise available, section facts otherwise available.7 For further 705(c)(5)(A)(ii) of the Act instructs 2 See Memorandum, ‘‘Large Diameter Welded Commerce to establish an all-others rate 4 See Memorandum, ‘‘Scope Comments Decision Pipe from Korea: Issues and Decision Memorandum using ‘‘any reasonable method.’’ for the Final Affirmative Determination of the Memorandum for the Preliminary Determinations,’’ Countervailing Duty Investigation,’’ dated dated June 19, 2018 (Preliminary Scope Decision According to section 705(c)(5)(A)(ii) of concurrently with this determination (Issues and Memorandum). Decision Memorandum). 5 See Large Diameter Welded Pipe from the 8 See Memoranda, ‘‘Verification of the 3 See Memorandum to the Record from Gary Republic of Korea: Preliminary Determination of Questionnaire Responses of the Government of Taverman, Deputy Assistant Secretary for Sales at Less than Fair Value and Postponement of Korea,’’ ‘‘Verification of the Questionnaire Antidumping and Countervailing Duty Operations, Final Determination, 83 FR 43651 (August 27, Responses of Husteel Co., Ltd.,’’ ‘‘Verification of the performing the non-exclusive functions and duties 2018). Questionnaire Responses of Hyundai Corporation,’’ of the Assistant Secretary for Enforcement and 6 See sections 771(5)(B) and (D) of the Act ‘‘Verification of the Questionnaire Responses of Compliance, ‘‘Deadlines Affected by the Partial regarding financial contribution; section 771(5)(E) Hyundai Steel Company,’’ and ‘‘Verification of the Shutdown of the Federal Government,’’ dated of the Act regarding benefit; and section 771(5A) of Questionnaire Responses of SeAH Steel Corporation January 28, 2019. All deadlines in this segment of the Act regarding specificity. and ESAB SeAH Corporation,’’ all dated October the proceeding have been extended by 40 days. 7 See sections 776(a),(b), and 782(d) of the Act. 26, 2018.

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the Act, one such ‘‘reasonable method’’ liquidation of all entries from June 29, to parties subject to an APO of their includes ‘‘averaging the weighted 2018, through October 25, 2018. responsibility concerning the average countervailable subsidy rates If the U.S. International Trade destruction of proprietary information determined for the exporters and Commission (ITC) issues a final disclosed under APO in accordance producers individually investigated.’’ affirmative injury determination, we with 19 CFR 351.305(a)(3). Timely Here, the countervailable subsidy rates will issue a CVD order, reinstate the written notification of the return/ for all of the individually investigated suspension of liquidation under section destruction of APO materials or respondents are zero or de minimis or 706(a) of the Act, and require a cash conversion to judicial protective order is are based on adverse facts available deposit of estimated countervailing hereby requested. Failure to comply (AFA). Therefore, consistent with duties for such entries of subject with the regulations and terms of an section 705(c)(5)(A)(ii) of the Act, we merchandise in the amounts indicated APO is a violation which is subject to have averaged the rates of the three above. If the ITC determines that sanction. individually investigated respondents to material injury, or threat of material This determination is issued and establish the estimated all others rate. injury, does not exist, this proceeding published pursuant to sections 705(d) This approach is also consistent with will be terminated and all estimated and 777(i) of the Act. 9 duties deposited or securities posted as our practice in other investigations. Dated: February 19, 2019 a result of the suspension of liquidation Commerce determines the total will be refunded or canceled. Gary Taverman, estimated net countervailable subsidy Deputy Assistant Secretary for Antidumping rates to be: ITC Notification and Countervailing Duty Operations, In accordance with section 705(d) of performing the non-exclusive functions and Subsidy rate the Act, Commerce will notify the ITC duties of the Assistant Secretary for Company (percent) Enforcement and Compliance. of its determination. In addition, we are Husteel Co., Ltd ...... * 0.01 making available to the ITC all non- Appendix I Hyundai Steel Company ...... * 0.44 privileged and non-proprietary Scope of the Investigation SeAH Steel Corporation ...... 27.42 information related to this investigation. We will allow the ITC access to all The merchandise covered by this All-Others Rate ...... 9.29 investigation is welded carbon and alloy steel privileged and business proprietary * (de minimis). pipe (including stainless steel pipe), more information in our files, provided the than 406.4 mm (16 inches) in nominal Disclosure ITC confirms that it will not disclose outside diameter (large diameter welded such information, either publicly or pipe), regardless of wall thickness, length, Commerce will disclose the under an administrative protective order surface finish, grade, end finish, or calculations performed within five days (APO), without the written consent of stenciling. Large diameter welded pipe may of the date of publication of this notice the Assistant Secretary for Enforcement be used to transport oil, gas, slurry, steam, or to parties in this proceeding in and Compliance. other fluids, liquids, or gases. It may also be Because the final determination in used for structural purposes, including, but accordance with 19 CFR 351.224(b). not limited to, piling. Specifically, not this proceeding is affirmative, in included is large diameter welded pipe Continuation of Suspension of accordance with section 705(b) of the Liquidation produced only to specifications of the Act, the ITC will make its final American Water Works Association (AWWA) As a result of our Preliminary determination as to whether the for water and sewage pipe. Determination and pursuant to section domestic industry in the United States Large diameter welded pipe used to is materially injured, or threatened with transport oil, gas, or natural gas liquids is 703(d)(1)(B) and (d)(2) of the Act, normally produced to the American Commerce instructed U.S. Customs and material injury, by reason of imports of welded pipe from Korea no later than 45 Petroleum Institute (API) specification 5L. Border Protection (CBP) to suspend Large diameter welded pipe may also be liquidation of entries of subject days after our final determination. If the produced to American Society for Testing merchandise as described in the scope ITC determines that material injury or and Materials (ASTM) standards A500, A252, of the investigation section entered, or threat of material injury does not exist, or A53, or other relevant domestic withdrawn from warehouse, for the proceeding will be terminated and specifications, grades and/or standards. Large consumption on or after the date of all cash deposits will be refunded. If the diameter welded pipe can be produced to publication of the Preliminary ITC determines that such injury does comparable foreign specifications, grades exist, Commerce will issue a CVD order and/or standards or to proprietary Determination in the Federal Register , specifications, grades and/or standards, or except for Husteel and Hyundai Steel.10 directing CBP to assess, upon further instruction by Commerce, can be non-graded material. All pipe meeting In accordance with section 703(d) of the the physical description set forth above is Act, we issued instructions to CBP to countervailing duties on all imports of covered by the scope of this investigation, discontinue the suspension of the subject merchandise, other than whether or not produced according to a liquidation for CVD purposes for subject those produced and exported by Husteel particular standard. merchandise entered, or withdrawn and Hyundai Steel because their rates Subject merchandise also includes large from warehouse, on or after October 26, are de minimis , that are entered, or diameter welded pipe that has been further 2018, but to continue the suspension of withdrawn from warehouse, for processed in a third country, including but consumption on or after the effective not limited to coating, painting, notching, date of the suspension of liquidation, as beveling, cutting, punching, welding, or any 9 See, e.g., Countervailing Duty Investigation of discussed above in the ‘‘Continuation of other processing that would not otherwise Certain Corrosion-Resistant Steel Products from remove the merchandise from the scope of Italy: Final Affirmative Determination and Final Suspension of Liquidation’’ section. the investigation if performed in the country Affirmative Critical Circumstances, in Part, 81 FR of manufacture of the in-scope large diameter 35326, 35327 (June 2, 2016). Notification Regarding Administrative welded pipe. 10 See Preliminary Determination, 83 FR at 30694. Protective Orders Because the rates for Husteel and Hyundai Steel The large diameter welded pipe that is were zero or de minimis in the Preliminary In the event that the ITC issues a final subject to this investigation is currently Determination, Commerce did not suspend entries negative injury determination, this classifiable in the Harmonized Tariff of merchandise from these companies. notice will serve as the only reminder Schedule of the United States (HTSUS) under

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subheadings 7305.11.1030, 7305.11.1060, U.S. Department of Commerce, 1401 registered users at https:// 7305.11.5000, 7305.12.1030, 7305.12.1060, Constitution Avenue NW, Washington, access.trade.gov, and to all parties in the 7305.12.5000, 7305.19.1030, 7305.19.1060, DC 20230; telephone: (202) 482–4136 or Central Records Unit, room B8024 of the 7305.19.5000, 7305.31.4000, 7305.31.6010, (202) 482–4952, respectively. main Department of Commerce 7305.31.6090, 7305.39.1000 and building. In addition, a complete 7305.39.5000. While the HTSUS subheadings SUPPLEMENTARY INFORMATION: version of the Preliminary Decision are provided for convenience and customs Scope of the Order purposes, the written description of the Memorandum can be found at http:// scope of this investigation is dispositive. The products covered by the order are enforcement.trade.gov/frn/. The signed certain carbon and alloy steel hot-rolled Preliminary Decision Memorandum and Appendix II or forged flat plate products not in coils, the electronic version of the Preliminary List of Topics Discussed in the Issues and whether or not painted, varnished, or Decision Memorandum are identical in Decision Memorandum coated with plastics or other non- content. A list of the topics discussed in I. Summary metallic substances from Germany. the Preliminary Decision Memorandum II. Background Products subject to the order are is attached as the Appendix to this III. Use of Facts Otherwise Available and currently classified in the Harmonized notice. Adverse Inferences Tariff Schedule of the United States Partial Rescission of Review IV. Subsidies Valuation (HTSUS) under item numbers: 2 V. Analysis of Programs 7208.40.3030, 7208.40.3060, On October 22, 2018, the petitioners VI. Analysis of Comments 7208.51.0030, 7208.51.0045, withdrew their review requests for the Comment 1: Application of Adverse Facts following companies: AG der Dillinger Available (AFA) to SeAH Steel for 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, Hu¨ ttenwerke (Dillinger); Perficon Steel Unreported Affiliates GmbH (Perficon); Reiner Brach GmbH & Comment 2: Application of AFA to SeAH 7211.14.0045, 7225.40.1110, Steel for SPP Pipe 7225.40.1180, 7225.40.3005, Co. KG (Reiner Brach); Rudolf Comment 3: Whether the Demand 7225.40.3050, 7226.20.0000, and Rafflenbeul Stahlwarenfabrik GmbH & Response Resources (DRR) Program is 7226.91.5000. Although the HTSUS Co (Rudolf Rafflenbeul); Tenova Countervailable subheadings are provided for (TAKRAF GmbH Lauchhammer) Comment 4: Whether Tax Credits under convenience and customs purposes, the (Tenova); ThyssenKrupp Steel Europe Restriction of Special Taxation Act written description of the merchandise AG (ThyssenKrupp Steel); (RSTA) Articles 25(2), 25(3), and 26 Are ThyssenKrupp Schulte GmbH subject to this scope is dispositive.1 Countervailable (TyssenKrupp Schulte); UPC Universal Comment 5: Whether a Benefit Exists in Methodology Piping GmbH (UPC); and VETTER the Modal Shift Program Umformtechnik GmbH (VETTER).3 In VII. Recommendation Commerce is conducting this review accordance with 19 CFR 351.213(d)(1), [FR Doc. 2019–03318 Filed 2–26–19; 8:45 am] in accordance with sections 751(a)(1)(B) and (2) of the Tariff Act of 1930, as Commerce is rescinding this review, in BILLING CODE 3510–DS–P amended (the Act). Pursuant to sections part, with respect to the following 776(a) and (b) of the Act, Commerce companies: Dillinger, Perficon, Reiner Brach, Rudolf Rafflenbeul, Tenova, DEPARTMENT OF COMMERCE preliminarily relied upon the facts otherwise available with adverse ThyssenKrupp Steel, ThyssenKrupp International Trade Administration inferences (AFA) to determine the Schulte, UPC, and VETTER. margin for Ilsenburger Grobblech [A–428–844] Preliminary Results of the Review GmbH, Salzgitter Mannesmann As a result of this review, Commerce Carbon and Alloy Steel Cut-to-Length Grobblech GmbH, Salzgitter Flachstahl preliminarily determines that a Plate From the Federal Republic of GmbH, and Salzgitter Mannesmann dumping margin of 174.03 percent Germany: Preliminary Results and International GmbH (collectively, exists for Salzgitter for the period Partial Rescission of the Antidumping Salzgitter), the sole remaining November 14, 2016, through April 30, Duty Administrative Review; 2016– mandatory respondent selected for 2018. 2018 review, because Salzgitter did not respond to Commerce’s questionnaire in Disclosure AGENCY: Enforcement and Compliance, this administrative review. For a Normally, Commerce discloses to International Trade Administration, complete explanation of the interested parties the calculations Department of Commerce. methodology and analysis underlying performed in connection with the SUMMARY: The Department of Commerce our preliminary application of AFA to preliminary results within five days of (Commerce) preliminary determines Salzgitter, see the Preliminary Decision the date of publication of the notice of that sales of certain carbon and alloy Memorandum. The Preliminary preliminary results in the Federal steel cut-to-length plate (CTL plate) Decision Memorandum is a public Register, in accordance with 19 CFR from the Federal Republic of Germany document and is on file electronically (Germany) were made at less than via Enforcement and Compliance’s 2 Enterprises LLC and Nucor Corporation, normal value during the period of Antidumping and Countervailing Duty domestic producers and certain of the petitioners in review (POR), November 14, 2016, Centralized Electronic Service System the underlying less-than-fair-value investigation (hereafter, the petitioners) through April 30, 2018. We invite (ACCESS). ACCESS is available to 3 See Letter from the petitioners, ‘‘Carbon and interested parties to comment on these Alloy Steel Cut-To-Length Plate from Germany preliminary results. 1 For a full description of the scope of the order, Withdrawal of Request for Administrative Review, see Memorandum entitled ‘‘Decision Memorandum dated October 22, 2018. The petitioners also DATES : Applicable February 27, 2019. for the Preliminary Results and Partial Rescission withdrew their review request for Ilsenburger FOR FURTHER INFORMATION CONTACT: of the 2016–2018 Administrative Review of the Grobblech GmbH (ILG). However, this company is David Goldberger or Ross Belliveau, Antidumping Duty Order on Certain Carbon and one of the Salzgitter entities and the petitioners Alloy Steel Cut-to-Length Plate from the Federal specifically indicated their intent to continue the AD/CVD Operations, Office II, Republic of Germany,’’ dated concurrently with, review with respect to Salzgitter. Accordingly, we Enforcement and Compliance, and hereby adopted by, this notice (Preliminary are not rescinding the administrative review with International Trade Administration, Decision Memorandum). respect to ILG.

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351.224(b). However, there are no manually (i.e., in paper form) with the and (4) the cash deposit rate for all other calculations to disclose in connection APO/Dockets Unit in Room 18022 and manufacturers or exporters will with these preliminary results because, stamped with the date and time of continue to be 21.04 percent, the ‘‘all in accordance with section 776 of the receipt by 5 p.m. ET on the due date. others’’ rate established in the Act, Commerce preliminarily applied Commerce intends to issue the final investigation.10 These deposit AFA to Salzgitter, the sole mandatory results of this administrative review, requirements, when imposed, shall respondent, and Commerce has including the results of its analysis of remain in effect until further notice. preliminarily determined as the AFA issues raised in any written briefs, not rate the highest dumping margin alleged later than 120 days after the date of Notification to Importers in the Petition.4 publication of this notice, unless the deadline is extended.7 This notice also serves as a Public Comment preliminary reminder to importers of Case briefs or other written comments Assessment Rates their responsibility under 19 CFR may be submitted to the Assistant Upon issuance of the final results, 351.402(f) to file a certificate regarding Secretary for Enforcement and Commerce shall determine, and U.S. the reimbursement of antidumping Compliance no later than 30 days after Customs and Border Protection (CBP) duties prior to liquidation of the the date of publication of this notice. shall assess, antidumping duties on all relevant entries during this review Rebuttal briefs, limited to issues raised appropriate entries covered by this period. Failure to comply with this in case briefs, may be submitted no later review.8 The final results of this review requirement could result in the than five days after the deadline date for shall be the basis for the assessment of Secretary’s presumption that 5 case briefs. Pursuant to 19 CFR antidumping duties on entries of reimbursement of antidumping duties 351.309(c)(2) and (d)(2), parties who merchandise covered by the final results occurred and the subsequent assessment submit case briefs or rebuttal briefs in of this review and for future deposits of of double antidumping duties. this administrative review are estimated duties, where applicable.9 For We are issuing and publishing these encouraged to submit with each the companies for which we are argument: (1) A statement of the issue; rescinding this review, antidumping results in accordance with sections (2) a brief summary of the argument; duties shall be assessed at rates equal to 751(a)(1) and 777(i)(1) of the Act, and 19 and (3) a table of authorities. the cash deposit of estimated CFR 351.221(b)(4). Pursuant to 19 CFR 351.310(c), antidumping duties required at the time Dated: February 21, 2019. interested parties who wish to request a of entry, or withdrawal from warehouse, hearing must submit a written request to Gary Taverman, for consumption, during the period Deputy Assistant Secretary for Antidumping the Assistant Secretary for Enforcement November 14, 2016, through April 30, and Compliance, U.S. Department of and Countervailing Duty Operations, 2018, in accordance with 19 CFR performing the non-exclusive functions and Commerce within 30 days after the date 351.212(c)(1)(i). We intend to issue of publication of this notice. Requests duties of the Assistant Secretary for instructions to CBP 15 days after the Enforcement and Compliance. should contain: (1) The party’s name, publication date of the final results of address, and telephone number; (2) the this review. Appendix number of participants; (3) whether any participant is a foreign national; and (4) Cash Deposit Requirements List of Topics Discussed in the Preliminary Decision Memorandum a list of issues parties intend to discuss. The following cash deposit Issues raised in the hearing will be requirements will be effective for all I. Summary limited to those raised in the respective shipments of the subject merchandise II. Background case and rebuttal briefs. If a request for entered, or withdrawn from warehouse, III. Partial Rescission of Administrative a hearing is made, Commerce intends to for consumption on or after the Review IV. Scope of the Order hold the hearing at the U.S. Department publication date of the final results of V. Application of Facts Available and of Commerce, 1401 Constitution Avenue this administrative review, as provided Adverse Inferences NW, Washington, DC 20230, at a time by section 751(a)(2)(C) of the Act: (1) 6 A. Use of Facts Available and date to be determined. Parties The cash deposit rate for Salzgitter will B. Application of Facts Available With an should confirm by telephone the date, be the rate established in the final time, and location of the hearing two Adverse Inference results of this review; (2) for previously C. Selection and Corroboration of Adverse days before the scheduled date. reviewed or investigated companies not All submissions, with limited Facts Available Rate participating in this review, the cash exceptions, must be filed electronically VI. Conclusion deposit rate will continue to be the using ACCESS. An electronically filed [FR Doc. 2019–03422 Filed 2–26–19; 8:45 am] company-specific rate published for the document must be received successfully most recently-completed segment of this BILLING CODE 3510–DS–P in its entirety by 5 p.m. Eastern Time proceeding in which the company was (ET) on the respective due date. reviewed; (3) if the exporter is not a firm Documents excepted from the electronic covered in this review, a prior review, submission requirements must be filed or the less-than-fair-value (LTFV) investigation, but the manufacturer is, 4 See Memorandum, ‘‘Placement of Initiation Checklist on Review Record’’ (Checklist the cash deposit rate will be the rate Memorandum), dated concurrently with this established for the most recently- 10 See Certain Carbon and Alloy Steel Cut-To- Notice. The Checklist Memorandum transmits the completed segment of this proceeding Initiation Checklist from the Less-Than-Fair-Value Length Plate from Austria, Belgium, France, the investigation, which includes information regarding for the producer of subject merchandise; Federal Republic of Germany, Italy, Japan, the the calculation of the margins alleged in the Republic of Korea, and Taiwan: Amended Final Petition. 7 See section 751(a)(3)(A) of the Act and 19 CFR Affirmative Antidumping Determinations for 5 See 19 CFR 351.309; see also 19 CFR 351.303 351.213(h). France, the Federal Republic of Germany, the (for general filing requirements). 8 See 19 CFR 351.212(b). Republic of Korea and Taiwan, and Antidumping 6 See 19 CFR 351.310(c). 9 See section 751(a)(2)(C) of the Act. Duty Orders, 82 FR 24096 (May 25, 2017).

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DEPARTMENT OF COMMERCE 2019.3 If the new deadline falls on a Decision Memorandum can be accessed non-business day, in accordance with directly at http://enforcement.trade.gov/ International Trade Administration Commerce’s practice, the deadline will frn/index.html. The signed and become the next business day. The electronic versions of the Issues and [A–580–897] revised deadline for the final Decision Memorandum are identical in Large Diameter Welded Pipe From the determination is now February 19, 2019. content. Republic of Korea: Final Determination Scope of the Investigation Verification of Sales at Less Than Fair Value The product covered by this As provided in section 782(i) of the AGENCY: Enforcement and Compliance, investigation is welded pipe from Korea. Tariff Act of 1930, as amended, (the International Trade Administration, For a full description of the scope of this Act), from September to October 2018, Department of Commerce. investigation, see the ‘‘Scope of the we conducted verification of the sales SUMMARY: The Department of Commerce Investigation’’ in Appendix I of this and cost information submitted by (Commerce) determines that large notice. Hyundai RB Co., Ltd. (Hyundai RB) and SeAH Steel Corporation (SeAH) for use diameter welded pipe (welded pipe) Scope Comments from the Republic of Korea (Korea) is in our final determination. We used During the course of this investigation standard verification procedures, being, or is likely to be, sold in the and the concurrent LTFV investigations United States at less than fair value including an examination of relevant of welded pipe from Canada, Greece, accounting and production records, and (LTFV) for the period of investigation India, the People’s Republic of China (POI) January 1, 2017, through original source documents provided by and the Republic of Turkey (Turkey), Hyundai RB and SeAH.5 December 31, 2017. and the concurrent countervailing duty DATES: Applicable February 27, 2019. investigations of welded pipe from Changes Since the Preliminary FOR FURTHER INFORMATION CONTACT: China, India, Korea and Turkey, Determination Sergio Balbontin, or Jesus Saenz, AD/ Commerce received scope comments Based on our analysis of the CVD Operations, Office VIII, from interested parties. Commerce comments received and our findings at Enforcement and Compliance, issued a Preliminary Scope Decision verification, we made certain changes to International Trade Administration, Memorandum 4 to address these the margin calculations for Hyundai RB U.S. Department of Commerce, 1401 comments. In the Preliminary and SeAH. For a discussion of these Constitution Avenue NW, Washington, Determination, Commerce set aside a changes, see the ‘‘Margin Calculations’’ DC 20230; telephone: (202) 482–6478 or period of time for parties to address section of the Issues and Decision (202) 482–8184. scope issues in scope case and rebuttal Memorandum. SUPPLEMENTARY INFORMATION: briefs. No interested parties submitted scope comments in scope case or scope Use of Adverse Facts Available Background rebuttal briefs. Therefore, for this final The respondent Samkang M&T Co., On August 27, 2018, Commerce determination, the scope of this Ltd (SKMT) failed to cooperate in this published in the Federal Register the investigation remains unchanged from investigation. Therefore, in the Preliminary Determination of sales at that published in the Preliminary Preliminary Determination, pursuant to LTFV of welded pipe from Korea, in Determination. sections 776(a)(1), 776(a)(2)(A)–(C), and 776(b) of the Act, Commerce assigned which we also postponed the final Analysis of Comments Received determination until January 9, 2019.1 SKMT a rate based on adverse facts All issues raised in the case and We invited interested parties to available (AFA). No party filed rebuttal briefs submitted by parties in comment on the Preliminary comments on our Preliminary this investigation are addressed in the Determination. A summary of the events Determination with respect to SKMT Issues and Decision Memorandum and there is no new information on the that occurred since Commerce accompanying this notice. A list of the published the Preliminary record that would cause us to revisit our issues addressed in the Issues and determination to apply AFA to SKMT. Determination, as well as a full Decision Memorandum is attached to discussion of the issues raised by parties this notice as Appendix II. The Issues 5 for this final determination, may be For a discussion of our verification findings, see and Decision Memorandum is a public the following memoranda: ‘‘Verification of the Cost found in the Issues and Decision document and is on file electronically Response of Hyundai RB Co., Ltd. in the Memorandum, which is adopted by this via Enforcement and Compliance’s Antidumping Duty Investigation of Large Diameter 2 Welded Pipe from Korea,’’ dated October 17, 2018; notice. Antidumping and Countervailing Duty Commerce exercised its discretion to ‘‘Verification of the Cost of Production and Centralized Electronic Service System Constructed Value response of SeAH Steel toll all deadlines affected by the partial (ACCESS). ACCESS is available to Corporation and its Affiliates in the Antidumping federal government closure from registered users at https:// Duty Investigation of Large Diameter Welded Pipe December 22, 2018, through the from Korea,’’ dated November 1, 2018; ‘‘Verification access.trade.gov, and it is available to of the Questionnaire Responses of Hyundai RB Co., resumption of operations on January 29, all parties in the Central Records Unit, Ltd. in the Antidumping Investigation of Large Room B–8024 of the main Department Diameter Welded Pipe from the Republic of Korea,’’ 1 See Large Diameter Welded Pipe from the of Commerce building. In addition, a dated November 5, 2018; ‘‘Verification of the Sales Republic of Korea: Preliminary Determination of Response of SeAH Steel Corporation in the Sales at Less Than Fair Value and Postponement complete version of the Issues and Antidumping Investigation of Large Diameter of Final Determination, 83 FR 43651 (August 27, Welded Pipe from Korea,’’ dated November 5, 2018; 2018) (Preliminary Determination), and 3 See Memorandum ‘‘Deadlines Affected by the and ‘‘Verification of the CEP Sales Questionnaire accompanying Preliminary Decision Memorandum. Partial Shutdown of the Federal Government,’’ Responses of SeAH Steel Corporation in the 2 See Memorandum, ‘‘Issues and Decision dated January 28, 2019. All deadlines in this Antidumping Investigation of Large Diameter Memorandum for the Final Affirmative segment of the proceeding have been extended by Welded Pipe from Korea,’’ dated November 6, 2018; Determination in the Less-Than-Fair-Value 40 days. ‘‘Verification of the Further Manufacturing Investigation of Large Diameter Welded Pipe from 4 See Memorandum, ‘‘Scope Comments Decision Response of SeAH Steel Corporation’s Affiliates the Republic of Korea,’’ dated concurrently with, Memorandum for the Preliminary Determinations,’’ Pusan Pipe of America and State Pipe in and hereby adopted by, this notice (Issues and dated June 19, 2018 (Preliminary Scope Decision Antidumping Duty Investigation of Large Diameter Decision Memorandum). Memorandum). Welded Pipe from Korea,’’ dated November 1, 2018.

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Accordingly, we continue to find that All-Others Rate Commerce calculated an estimated the application of AFA pursuant to weighted-average dumping margin that section 776(a) and (b) of the Act is Section 735(c)(5)(A) of the Act is not zero, de minimis, or based warranted with respect to SKMT. provides that the estimated weighted- entirely on facts otherwise available. However, in applying total AFA for the average dumping margin for all-other Commerce calculated the all-others’ rate final determination, Commerce has now producers and exporters not using a weighted average of the assigned to SKMT’s exports of the individually investigated shall be equal estimated weighted-average dumping to the weighted average of the estimated subject merchandise the rate of 20.39 margins calculated for the examined weighted-average dumping margins percent, which is the highest rate respondents using each company’s established for exporters and producers calculated in the petition 6 and which publicly-ranged values for the individually investigated excluding 8 has been corroborated to the extent merchandise under consideration. rates that are zero, de minimis, or practicable within the meaning of Final Determination 7 determined entirely under section 776 section 776(c) of the Act. of the Act. Hyundai RB and SeAH are The final estimated weighted-average the only respondents for which dumping margins are as follows:

Cash deposit Weighted- rate average (adjusted for Exporter or producer dumping subsidy margin offset(s)) (percent) (percent)

Hyundai RB Co., Ltd ...... 14.97 12.86 SeAH Steel Corporation ...... 7.03 4.92 Samkang M&T Co., Ltd ...... 20.39 18.28 All Others ...... 9.30 7.19

Disclosure dumping margin as follows: (1) The Consistent with our longstanding We intend to disclose the calculations cash deposit rate for the respondents practice, where the product under performed in this final determination listed above will be equal to the investigation is also subject to a within five days of the date of respondent-specific estimated weighted- concurrent countervailing duty publication of this notice to parties in average dumping margin determined in investigation, we instruct CBP to require this proceeding in accordance with 19 this final determination; (2) if the a cash deposit equal to the amount by CFR 351.224(b). exporter is not a respondent identified which the normal value exceeds the above but the producer is, then the cash U.S. price, less the amount of the Continuation of Suspension of deposit rate will be equal to the countervailing duty determined to Liquidation respondent-specific estimated weighted- constitute any export subsidies.10 In accordance with section average dumping margin established for Therefore, in the event that a 735(c)(1)(B) of the Act, for this final that producer of the subject countervailing duty order is issued and determination, we will direct U.S. merchandise; and (3) the cash deposit suspension of liquidation is resumed in Customs and Border Protection (CBP) to rate for all other producers and the companion countervailing duty continue to suspend liquidation of all exporters will be equal to the all-others investigation on welded pipe from entries of welded pipe, as described in estimated weighted-average dumping Korea, Commerce will instruct CBP to Appendix I of this notice, which are margin. These suspension-of-liquidation require cash deposits adjusted by the entered, or withdrawn from warehouse, instructions will remain in effect until amount of export subsidies, as for consumption on or after August 27, further notice. appropriate. These adjustments are 2018, the date of publication in the Further, we will instruct CBP to reflected in the final column of the rate Federal Register of the affirmative require a cash deposit equal to the chart, above. Until such suspension of Preliminary Determination. estimated amount by which the normal liquidation is resumed in the Pursuant to section 735(c)(1)(B)(ii) of value exceeds the U.S. price as shown companion countervailing duty the Act and 19 CFR 351.210(d), we will above, adjusted where appropriate, for investigation, and so long as suspension instruct CBP to require a cash deposit export subsidies found in the final of liquidation continues under this for such entries of merchandise equal to determination of the companion antidumping duty investigation, the the estimated weighted-average countervailing duty investigation.9 cash deposit rates for this antidumping

6 See Petitioners’ Letter ‘‘Large Diameter Welded average dumping margins calculated for the Determination,’’ dated concurrently with this Pipe from Canada, Greece, India, the People’s examined respondents; and (C) a weighted average notice. Republic of China, the Republic of Korea and the of the estimated weighted-average dumping margins 9 See Modification of Regulations Regarding the Republic of Turkey: Response to the Department’s calculated for the examined respondents using each Practice of Accepting Bonds During the Provisional January 30, 2018 Additional Questions Regarding company’s publicly-ranged U.S. sale values for the Measures Period in Antidumping and merchandise under consideration. Commerce then Volume VI of the Petition for the Imposition of Countervailing Duty Investigations, 76 FR 61042 compares (B) and (C) to (A) and selects the rate Antidumping and Countervailing Duties,’’ dated (October 3, 2011). closest to (A) as the most appropriate rate for all February 1, 2018 at Exhibit AD–KR–Supp2–3. 10 See, e.g., Welded Line Pipe from the Republic 7 other producers and exporters. See Ball Bearings For further discussion see Issues and Decision and Parts Thereof from France, Germany, Italy, of Turkey: Final Determination of Sales at Less Memorandum and Corroboration Memo. Japan, and the United Kingdom: Final Results of Than Fair Value, 80 FR 61362 (October 13, 2015), 8 With two respondents under examination, Antidumping Duty Administrative Reviews, Final and Notice of Final Determination of Sales at Less Commerce normally calculates (A) a weighted Results of Changed-Circumstances Review, and Than Fair Value and Negative Critical average of the estimated weighted-average dumping Revocation of an Order in Part, 75 FR 53661, 53663 Circumstances Determination: Bottom Mount margins calculated for the examined respondents; (September 1, 2010); see also Memorandum, Combination Refrigerator-Freezers from the (B) a simple average of the estimated weighted- ‘‘Calculation of the All-Others Rate for the Final Republic of Korea, 77 FR 17413 (March 26, 2012).

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duty investigation will be the rates sections 735(d) and 777(i)(1) of the Act 7305.12.5000, 7305.19.1030, 7305.19.1060, identified in the estimated weighted- and 19 CFR 351.210(c). 7305.19.5000, 7305.31.4000, 7305.31.6010, 7305.31.6090, 7305.39.1000 and average dumping margin column in the Dated: February 19, 2019. rate chart, above. 7305.39.5000. While the HTSUS subheadings Gary Taverman, are provided for convenience and customs International Trade Commission Deputy Assistant Secretary for Antidumping purposes, the written description of the Notification and Countervailing Duty Operations, scope of this investigation is dispositive. performing the non-exclusive functions and In accordance with section 735(d) of duties of the Assistant Secretary for Appendix II the Act, we will notify the International Enforcement and Compliance. List of Topics Discussed in the Issues and Trade Commission (ITC) of the final Decision Memorandum affirmative determination of sales at Appendix I I. Summary LTFV. In addition, we are making Scope of the Investigation II. Background available to the ITC all non-privileged The merchandise covered by this III. Scope of the Investigation and non-proprietary information related investigation is welded carbon and alloy steel IV. Margin Calculations to this investigation. We will allow the pipe (including stainless steel pipe), more V. Application of Adverse Facts Available ITC access to all privileged and business than 406.4 mm (16 inches) in nominal VI. Adjustment for Countervailed Export proprietary information in our files, outside diameter (large diameter welded Subsidies provided the ITC confirms that it will pipe), regardless of wall thickness, length, VII. Discussion of the Issues not disclose such information, either surface finish, grade, end finish, or General Issues publicly or under an administrative stenciling. Large diameter welded pipe may 1. Cost-Based Particular Market Situation be used to transport oil, gas, slurry, steam, or Allegation protective order (APO), without the other fluids, liquids, or gases. It may also be 2. Petitioners’ Proposed Regression written consent of the Assistant used for structural purposes, including, but Analysis Secretary for Enforcement and not limited to, piling. Specifically, not 3. Whether Subsidy Rates used to Adjust Compliance. Because Commerce’s final included is large diameter welded pipe the PMS are Accurate determination is affirmative, in produced only to specifications of the 4. PMS Adjustment for Stainless Steel Plate accordance with section 735(b)(2) of the American Water Works Association (AWWA) 5. Differential Pricing Act, the ITC will make its final for water and sewage pipe. 6. Direct Material/Conversion Costs determination as to whether the Large diameter welded pipe used to Hyundai RB 7. Hyundai RB’s G&A Expense Ratio domestic industry in the United States transport oil, gas, or natural gas liquids is normally produced to the American 8. Hyundai RB and Hyundai Steel is materially injured, or threatened with Petroleum Institute (API) specification 5L. Affiliation material injury, by reason of imports, or Large diameter welded pipe may also be 9. Hyundai RB’s Indirect Selling Expense sales (or the likelihood of sales) for produced to American Society for Testing Ratio importation of welded pipe from Korea and Materials (ASTM) standards A500, A252, 10. Hyundai RB’s Foreign Exchange Losses no later than 45 days after this final or A53, or other relevant domestic 11. Treatment of Company A’s Bad Debt determination. If the ITC determines specifications, grades and/or standards. Large Expenses that such injury does not exist, this diameter welded pipe can be produced to 12. Hyundai RB’s Scrap Offset proceeding will be terminated and all comparable foreign specifications, grades SeAH and/or standards or to proprietary 13. SeAH’s Indirect Selling Expenses for cash deposits will be refunded. If the specifications, grades and/or standards, or Non-Further Manufactured Sales ITC determines that such injury does can be non-graded material. All pipe meeting 14. SeAH’s Sale to Puerto Rico exist, Commerce will issue an the physical description set forth above is 15. Treatment of Refunds from Customs antidumping duty order directing CBP covered by the scope of this investigation, and Border Protection and Refund for to assess, upon further instruction by whether or not produced according to a Damaged Goods Commerce, antidumping duties on all particular standard. 16. SeAH Holdings Corporation’s imports of the subject merchandise Subject merchandise also includes large Unrecovered Costs entered, or withdrawn from warehouse, diameter welded pipe that has been further 17. SeAH’s Interest Income Offset processed in a third country, including but for consumption on or after the effective 18. Correction of Ministerial Errors in the not limited to coating, painting, notching, Preliminary Determination date of the suspension of liquidation, as beveling, cutting, punching, welding, or any 19. Correction of Minor Errors Reported at discussed above in the ‘‘Continuation of other processing that would not otherwise Verification Suspension of Liquidation’’ section. remove the merchandise from the scope of 20. Freight Revenue Cap the investigation if performed in the country VIII. Recommendation Notification Regarding Administrative of manufacture of the in-scope large diameter Protective Orders welded pipe. [FR Doc. 2019–03319 Filed 2–26–19; 8:45 am] This notice serves as a reminder to Excluded from the scope are any products BILLING CODE 3510–DS–P parties subject to an administrative covered by the existing antidumping duty protective order (APO) of their order on welded line pipe from the Republic of Korea. See Welded Line Pipe from the DEPARTMENT OF COMMERCE responsibility concerning the Republic of Korea and the Republic of disposition of proprietary information Turkey: Antidumping Duty Orders, 80 FR International Trade Administration disclosed under APO in accordance 75056 (December 1, 2015). Also excluded with 19 CFR 351.305(a)(3). Timely from the scope are any products covered by [Application No. 18–00002] the existing antidumping order on welded written notification of return or Export Trade Certificate of Review destruction of APO materials, or ASTM A–312 stainless steel pipe from Korea. See Welded ASTM A–312 Stainless Steel conversion to judicial protective order, ACTION: Notice of issuance of an Export is hereby requested. Failure to comply Pipe from South Korea: Antidumping Duty Order, 57 FR 62300 (December 30, 1992). Trade Certificate of Review to Alaska with the regulations and the terms of an The large diameter welded pipe that is Groundfish Commission (‘‘AGC’’), APO is a sanctionable violation. subject to this investigation is currently Application Number 18–00002. Notification to Interested Parties classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) under SUMMARY: The Secretary of Commerce, This determination and this notice are subheadings 7305.11.1030, 7305.11.1060, through the Office of Trade and issued and published pursuant to 7305.11.5000, 7305.12.1030, 7305.12.1060, Economic Analysis (‘‘OTEA’’), issued an

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Export Trade Certificate of Review to Export Conduct g. refuse to quote prices for, or to AGC on February 15, 2019. To engage in Export Trade in the market or sell, Export Product in Export Export Markets, AGC and its Members Markets; and FOR FURTHER INFORMATION CONTACT: h. engage in joint promotional Joseph Flynn, Director, OTEA, may undertake the following activities: 1. Each Member will from time to activities aimed at developing existing International Trade Administration, by or new Export Markets, such as telephone at (202) 482–5131 (this is not time independently determine in its sole discretion (i) the quantity of Export advertising and trade shows. a toll-free number) or email at etca@ 6. AGC may, for itself and on behalf trade.gov. Product that it makes available for sale in Export Markets, and (ii) whether any of its Members, contact non-member suppliers of Export Product to elicit SUPPLEMENTARY INFORMATION: Title III of portion of such quantity will be sold the Export Trading Company Act of independently by it, be sold in information relating to price, volume 1982 (15 U.S.C. 4001–21) (‘‘the Act’’) cooperation with some or all of the delivery schedules, terms of sale, and authorizes the Secretary of Commerce to other Members, or be made available to other matters relating to such suppliers’ issue Export Trade Certificates of AGC for sale in Export Markets. AGC sales or prospective sales in Export Review. An Export Trade Certificate of may not require any Member to export Markets. 7. Subject to the limitations set forth Review protects the holder and the any minimum quantity of Export in paragraph 1, above, AGC and its members identified in the Certificate Product. Members may agree on the quantities of from State and Federal government 2. AGC and/or its Members may enter Export Product and the prices at which antitrust actions and from private treble into agreements to act in certain AGC and its Members may sell Export damage antitrust actions for the export countries or markets as the Members’ Product in and for Export Markets, and conduct specified in the Certificate and exclusive or non-exclusive export may also agree on territorial and carried out in compliance with its terms intermediary for the quantity of Export customer allocations in Export Markets and conditions. The regulations Product dedicated by each Member for sale by AGC or any Member in that among the Members. implementing Title III are found at 15 8. AGC and its Members may enter CFR part 325 (2018). OTEA is issuing country or market. In any such agreement (i) AGC or the Member acting into exclusive and non-exclusive this notice pursuant to 15 CFR 325.6(b), agreements appointing third parties as which requires the Secretary of as the exclusive export intermediary may agree not to represent any other export intermediaries for the sale of Commerce to publish a summary of the Export Product in Export Markets. Such certification in the Federal Register. supplier of Export Product with respect to one or more Export Market, and (ii) agreements may contain the price, Under Section 305(a) of the Act and 15 quantity, territorial, and customer CFR 325.11(a), any person aggrieved by Members may agree that they will export the quantity of Export Product provisions for Export Markets contained the Secretary’s determination may, in paragraph 5, above. within 30 days of the date of this notice, dedicated for sale in such Export Markets only through AGC or the 9. AGC and its Members may solicit bring an action in any appropriate individual non-Member suppliers of district court of the United States to set Member acting as exclusive export intermediary, and that they will not Export Product to sell such Export aside the determination on the ground Product to AGC or Members for sale in that the determination is erroneous. export Export Product otherwise, either directly or through any other export Export Markets. Description of Certified Conduct intermediary. 10. AGC and its Members may 3. AGC and/or one or more of its prescribe conditions for withdrawal of A summary of AGC’s Export Trade Members may engage in joint bidding or Members from and admission of Certificate of Review follows. selling arrangements for Export Markets Members to AGC. 11. AGC may, for itself or on behalf Certificate Holder and allocate sales resulting from such arrangements among the Members. of its Members, establish and implement • AGC 4. The Members may refuse to deal a quality assurance program for Export with export intermediaries other than Product, including without limitation Members AGC and its Members. establishing, staffing, and operating a laboratory to conduct quality testing, • Ocean Peace, Inc., Seattle, WA; M/V 5. AGC may, for itself and on behalf promulgating quality standards or Savage, Inc., Seattle, WA; AK Victory, of its Members, by agreement with its or grades, inspecting Export Product Inc., Seattle, WA; The Fishing its Members’ distributors or agents, or samples and publishing guidelines for Company of Alaska, Inc., Seattle, WA; on the basis of its own determination: and reports of the results of laboratory Alaska Warrior, Inc., Seattle, WA; a. Establish the prices at which Export Product will be sold in Export Markets; testing. O’Hara Corporation, Rockland, ME; 12. AGC may conduct meetings of its O’Hara DISC, Inc., Rockland, ME b. establish standard terms of sale of Export Product; Members to engage in the activities Export Product c. establish standard quality grades for described in paragraphs 1 through 11 Export Product; above. • AGC and its Members plan to export d. establish target prices for sales of 13. AGC may compile for, collect the following six products, which are Export Product by its Members in from, and disseminate to its Members, frozen-at-sea (i.e., the export product Export Markets, with each Member and the Members may discuss among is frozen on the catcher-processor remaining free to deviate from such themselves, either in meetings trawl vessel while at-sea), and in target prices in its sole discretion; conducted by AGC or independently via headed and gutted (i.e., head and e. subject to the limitations set forth telephone and other available and viscera are removed) and round (i.e., in paragraph 1, above, establish the appropriate modes of communication, whole) forms: Atka mackerel, Pacific quantity of Export Product to be sold in the following types of information with Ocean perch, yellowfin sole, Pacific Export Markets respect to the export of Export Product cod, flathead sole, and rock sole f. allocate among the Members Export to Export Markets only: (‘‘Export Product,’’ or collectively, the Markets or customers in the Export a. Sales and marketing efforts, and ‘‘Export Products’’). Markets; activities and opportunities for sales of

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Export Product, including but not large diameter welded pipe (welded scope of this investigation, see the limited to selling strategies and pricing, pipe) from Canada is being, or is likely ‘‘Scope of the Investigation’’ in projected demand for Export Product, to be, sold in the United States at less Appendix I of this notice. standard or customary terms of sale in than fair value (LTFV) during the period Scope Comments Export Markets, prices and availability of investigation (POI) January 1, 2017, of Export Product from competitors, and through December 31, 2017. During the course of this investigation specifications for Export Product by DATES: Applicable February 27, 2019. and the concurrent LTFV investigations of welded pipe from Greece, India, the customers in Export Markets; FOR FURTHER INFORMATION CONTACT: b. Price, quality, quantity, source, and Susan S. Pulongbarit or Annathea Cook, People’s Republic of China (China) and delivery dates of Export Product AD/CVD Operations, Office V, the Republic of Turkey (Turkey), and available from the Members for export Enforcement and Compliance, the concurrent countervailing duty including but not limited to export International Trade Administration, investigations of large diameter welded inventory levels and geographic U.S. Department of Commerce, 1401 pipe from China, India, Korea and availability; Constitution Avenue NW, Washington, Turkey, Commerce received scope c. Terms and conditions of contracts DC 20230; telephone: (202) 482–4031or comments from interested parties. for sales to be considered and/or bid on (202) 482–0250, respectively. Commerce issued a Preliminary Scope by AGC and its Members; Decision Memorandum to address these SUPPLEMENTARY INFORMATION: d. Joint bidding or selling comments.4 In the Preliminary arrangements and allocation of sales Background Determination, Commerce set aside a resulting from such arrangements On August 27, 2018, Commerce period of time for parties to address among the Members, including each published in the Federal Register the scope issues in scope case and rebuttal Member’s share of the previous calendar Preliminary Determination of sales at briefs. No interested parties submitted year’s total foreign sales; LTFV of welded pipe from Canada, in scope comments in scope case or scope e. Expenses specific to exporting to which we also postponed the final rebuttal briefs. Therefore, for this final and within Export Markets, including determination until January 9, 2018.1 determination, the scope of this without limitation transportation, trans- We invited interested parties to investigation remains unchanged from or intermodal shipments, cold storage, comment on the Preliminary that published in the Preliminary insurance, inland freight to port, port Determination. A summary of the events Determination. storage, commissions, transactional that occurred since Commerce Analysis of Comments Received costs, documentation, financing, published the Preliminary customs duties, and taxes; All issues raised in the case and Determination, as well as a full rebuttal briefs submitted by parties in f. U.S. and foreign legislation discussion of the issues raised by parties regulations and policies affecting export this investigation are addressed in the for this final determination, may be Issues and Decision Memorandum sales; and found in the Issues and Decision g. AGC’s and/or its Members’ export accompanying this notice. A list of the Memorandum, which is adopted by this issues addressed in the Issues and operations, including without 2 notice. Decision Memorandum is attached to limitation, sales and distribution Commerce exercised its discretion to networks established by AGC or its this notice as Appendix II. The Issues toll all deadlines affected by the partial and Decision Memorandum is a public Members in Export Markets, and prior federal government closure from export sales by Members (including document and is on file electronically December 22, 2018, through the via Enforcement and Compliance’s export price information). resumption of operations on January 29, The effective date of the Certificate is Antidumping and Countervailing Duty 2019.3 If the tolled deadline falls on a October 22, 2018, the date on which Centralized Electronic Service System non-business day, in accordance with AGC’s application was deemed (ACCESS). ACCESS is available to Commerce’s practice, the deadline will submitted. registered users at https:// become the next business day. The Dated: February 21, 2019. access.trade.gov, and it is available to revised deadline for this final all parties in the Central Records Unit, Joseph Flynn, determination is now February 19, 2019. room B–8024 of the main Department of Director, Office of Trade and Economic Commerce building. In addition, a Analysis, International Trade Administration, Scope of the Investigation complete version of the Issues and U.S. Department of Commerce. The product covered by this Decision Memorandum can be accessed [FR Doc. 2019–03324 Filed 2–26–19; 8:45 am] investigation is welded pipe from directly at http://enforcement.trade.gov/ BILLING CODE 3510–DR–P Canada. For a full description of the frn/index.html. The signed and electronic versions of the Issues and 1 See Large Diameter Welded Pipe from Canada: DEPARTMENT OF COMMERCE Preliminary Determination of Sales at Less Than Decision Memorandum are identical in Fair Value, Postponement of Final Determination, content. International Trade Administration and Extension of Provisional Measures, 83 FR 43649 (August 27, 2018) (Preliminary Verification [A–122–863] Determination) and accompanying Preliminary As provided in section 782(i) of the Decision Memorandum. Tariff Act of 1930, as amended, (the Act) Large Diameter Welded Pipe From 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative from September to December 2018, we Canada: Final Affirmative Determination in the Less-Than-Fair-Value conducted verification of the sales and Determination of Sales at Less Than Investigation of Large Diameter Welded Pipe from cost information submitted by Evraz Inc. Fair Value Canada,’’ dated concurrently with, and hereby NA (Evraz) and Enbridge Inc. (Enbridge) adopted by, this notice (Issues and Decision AGENCY: Enforcement and Compliance, Memorandum). for use in our final determination. We International Trade Administration, 3 See Memorandum ‘‘Deadlines Affected by the Department of Commerce. Partial Shutdown of the Federal Government,’’ 4 See Memorandum, ‘‘Scope Comments Decision dated January 28, 2019. All deadlines in this Memorandum for the Preliminary Determinations,’’ SUMMARY: The Department of Commerce segment of the proceeding have been extended by dated June 19, 2018 (Preliminary Scope Decision (Commerce) determines that imports of 40 days. Memorandum).

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used standard verification procedures, Weighted- protective order (APO), without the including an examination of relevant average written consent of the Assistant accounting and production records, and Exporter or producer dumping Secretary for Enforcement and margin original source documents provided by (percent) Compliance. Because Commerce’s final Evraz and Enbridge.5 determination is affirmative, in Changes Since the Preliminary All Others ...... 12.32 accordance with section 735(b)(2) of the Determination Act, the ITC will make its final Disclosure determination as to whether the Based on our analysis of the domestic industry in the United States We intend to disclose the calculations comments received and our findings at is materially injured, or threatened with performed in this final determination verification, we made certain changes to material injury, by reason of imports, or within five days of the date of the margin calculations for the sales (or the likelihood of sales) for publication of this notice to parties in respondent. For a discussion of these importation of welded pipe from this proceeding in accordance with 19 changes, see the ‘‘Margin Calculations’’ Canada no later than 45 days after this CFR 351.224(b). section of the Issues and Decision final determination. If the ITC Memorandum. Continuation of Suspension of determines that such injury does not All-Others Rate Liquidation exist, this proceeding will be terminated and all cash deposits will be refunded. Section 735(c)(5)(A) of the Act In accordance with section If the ITC determines that such injury provides that the estimated weighted- 735(c)(1)(B) of the Act, for this final does exist, Commerce will issue an average dumping margin for all-other determination, we will direct U.S. antidumping duty order directing CBP producers and exporters not Customs and Border Protection (CBP) to individually investigated shall be equal continue to suspend liquidation of all to assess, upon further instruction by to the weighted average of the estimated entries of welded pipe from Canada, as Commerce, antidumping duties on all weighted-average dumping margins described in Appendix I of this notice, imports of the subject merchandise established for exporters and producers which are entered, or withdrawn from entered, or withdrawn from warehouse, individually investigated excluding warehouse, for consumption on or after for consumption on or after the effective rates that are zero, de minimis, or August 27, 2018, the date of publication date of the suspension of liquidation, as determined entirely under section 776 in the Federal Register of the discussed above in the ‘‘Continuation of of the Act. Evraz is the only respondent affirmative Preliminary Determination. Suspension of Liquidation’’ section. for which Commerce calculated an Pursuant to section 735(c)(1)(B)(ii) of Notification Regarding Administrative estimated weighted-average dumping the Act and 19 CFR 351.210(d), we will Protective Orders margin that is not zero, de minimis, or instruct CBP to require a cash deposit This notice serves as a reminder to based entirely on facts otherwise for such entries of merchandise equal to parties subject to an administrative available. Therefore, for purposes of the estimated weighted-average protective order (APO) of their determining the ‘‘all-others’’ rate, and dumping margin as follows: (1) The responsibility concerning the pursuant to section 735(c)(5)(A) of the cash deposit rate for a company listed disposition of proprietary information Act, we are using the estimated above will be equal to the respondent- disclosed under APO in accordance weighted-average dumping margin specific estimated weighted-average with 19 CFR 351.305(a)(3). Timely calculated for Evraz, as referenced in the dumping margin determined in this written notification of return or ‘‘Final Determination’’ section below. final determination; (2) if the exporter is destruction of APO materials, or not a respondent identified above but Final Determination conversion to judicial protective order, the producer is, then the cash deposit is hereby requested. Failure to comply The final estimated weighted-average rate will be equal to the respondent- with the regulations and the terms of an dumping margins are as follows: specific estimated weighted-average APO is a sanctionable violation. dumping margin established for that Weighted- producer of the subject merchandise; average Notification to Interested Parties Exporter or producer dumping and (3) the cash deposit rate for all other This determination is issued and margin producers and exporters will be equal to published in accordance with sections (percent) the all-others estimated weighted- 733(f) and 777(i)(1) of the Act and 19 average dumping margin. These 6 CFR 351.205(c). Evraz Inc. NA ...... 12.32 suspension of liquidation instructions will remain in effect until further notice. Dated: February 19, 2019. 5 For discussion of our verification findings, see Gary Taverman, the following memoranda: Memorandum, International Trade Commission Deputy Assistant Secretary for Antidumping ‘‘Verification of the Cost Response of Evraz Inc. NA Notification (Evraz) in the Less Than-Fair-Value Investigation of and Countervailing Duty Operations, Large Diameter Welded Pipe from Canada,’’ dated In accordance with section 735(d) of performing the non-exclusive functions and November 19, 2018; Memorandum, ‘‘Verification of the Act, we will notify the International duties of the Assistant Secretary for the Sales Response of Evraz in the Antidumping Enforcement and Compliance. Investigation of Large Diameter Welded Pipe from Trade Commission (ITC) of the final Canada,’’ dated December 3, 2018; Memorandum, affirmative determination of sales at Appendix I ‘‘Verification of the Sales Response of Enbridge Inc. LTFV. In addition, we are making in the Antidumping Investigation of Large Diameter available to the ITC all non-privileged Scope of the Investigation Welded Pipe from Canada,’’ dated December 10, and non-proprietary information related The merchandise covered by this 2018. investigation is welded carbon and alloy steel 6 to this investigation. We will allow the Commerce preliminarily determined that Evraz pipe (including stainless steel pipe), more Inc. NA, Evraz Inc. NA Canada, and the Canadian ITC access to all privileged and business than 406.4 mm (16 inches) in nominal National Steel Corporation are a single entity. See proprietary information in our files, outside diameter (large diameter welded Preliminary Decision Memorandum at ‘‘Affiliation provided the ITC confirms that it will and Collapsing.’’ We have received no comments on pipe), regardless of wall thickness, length, this issue and are continuing to treat these as a not disclose such information, either surface finish, grade, end finish, or single entity. publicly or under an administrative stenciling. Large diameter welded pipe may

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be used to transport oil, gas, slurry, steam, or DEPARTMENT OF COMMERCE the progress related to ICCAT’s bluefin other fluids, liquids, or gases. It may also be tuna MSE work, including recent used for structural purposes, including, but National Oceanic and Atmospheric meetings of ICCAT’s Standing not limited to, piling. Specifically, not Administration Committee on Research and Statistics included is large diameter welded pipe RIN 0648–XG814 (SCRS), ICCAT’s scientific branch. produced only to specifications of the Additionally, NMFS is interested in American Water Works Association (AWWA) Public Conference Call Regarding learning from stakeholders about for water and sewage pipe. Atlantic Bluefin Tuna Management preferred management objectives. NMFS Large diameter welded pipe used to Strategy Evaluation will provide reasonable opportunity for transport oil, gas, or natural gas liquids is public input and will announce the normally produced to the American AGENCY: National Marine Fisheries timing and format for such input at the Petroleum Institute (API) specification 5L. Service (NMFS), National Oceanic and beginning of the conference call. Large diameter welded pipe may also be Atmospheric Administration (NOAA), produced to American Society for Testing Commerce. Dated: February 21, 2019. and Materials (ASTM) standards A500, A252, Paul Doremus, ACTION: Notice of public conference call. or A53, or other relevant domestic Acting Director, Office of International Affairs specifications, grades and/or standards. Large SUMMARY: NMFS is holding a and Seafood Inspection, National Marine diameter welded pipe can be produced to stakeholder meeting by conference call Fisheries Service. comparable foreign specifications, grades to provide information on recent [FR Doc. 2019–03323 Filed 2–26–19; 8:45 am] and/or standards or to proprietary progress related to the International BILLING CODE 3510–22–P specifications, grades and/or standards, or Commission for the Conservation of can be non-graded material. All pipe meeting Atlantic Tunas (ICCAT) bluefin tuna the physical description set forth above is management strategy evaluation (MSE). DEPARTMENT OF COMMERCE covered by the scope of this investigation, NMFS will also receive input on issues National Oceanic and Atmospheric whether or not produced according to a to be considered at an upcoming particular standard. Administration intersessional meeting of ICCAT’s Panel Subject merchandise also includes large RIN 0648–XG819 diameter welded pipe that has been further 2, which will focus on initial operational management objectives for processed in a third country, including but Meeting of the Columbia Basin not limited to coating, painting, notching, the bluefin tuna MSE. The conference call is open to the public. Partnership Task Force of the Marine beveling, cutting, punching, welding, or any Fisheries Advisory Committee other processing that would not otherwise DATES: An operator-assisted conference remove the merchandise from the scope of call that is open to the public will be AGENCY: National Marine Fisheries the investigation if performed in the country held on February 28, 2019, from 1 p.m. Service (NMFS), National Oceanic and of manufacture of the in-scope large diameter to 2:30 p.m. EST. (phone number 800– Atmospheric Administration (NOAA), welded pipe. 857–9879; verbal password ‘‘ICCAT’’). Department of Commerce. The large diameter welded pipe that is Participants are strongly encouraged to ACTION: Notice of open public meeting. subject to this investigation is currently dial in 15 minutes prior to the meeting. classifiable in the Harmonized Tariff FOR FURTHER INFORMATION CONTACT: SUMMARY: This notice sets forth the Schedule of the United States (HTSUS) under Terra Lederhouse at (301) 427–8360. proposed schedule and agenda of a subheadings 7305.11.1030, 7305.11.1060, forthcoming meeting of the Marine SUPPLEMENTARY INFORMATION: The 7305.11.5000, 7305.12.1030, 7305.12.1060, Fisheries Advisory Committee’s International Commission for the 7305.12.5000, 7305.19.1030, 7305.19.1060, (MAFAC’s) Columbia Basin Partnership Conservation of Atlantic Tunas (ICCAT) 7305.19.5000, 7305.31.4000, 7305.31.6010, Task Force (CBP Task Force). The CBP is hosting an intersessional meeting of 7305.31.6090, 7305.39.1000 and Task Force will discuss the issues its Panel 2 on March 4–7, 2019, in 7305.39.5000. While the HTSUS subheadings outlined in the SUPPLEMENTARY Madrid, Spain. ICCAT’s Panel 2 is are provided for convenience and customs INFORMATION below. purposes, the written description of the responsible for keeping under review DATES: scope of this investigation is dispositive. the conservation and management of The meeting will be held March northern temperature tunas, including 18, 2019 from 12 to 4:30 p.m. MT and Appendix II albacore and Atlantic bluefin. At its on March 19, 2019 from 9 a.m. to 3 p.m. MT. List of Topics Discussed in the Preliminary March 4–7 intersessional meeting, Decision Memorandum ICCAT’s Panel 2 will seek to advance ADDRESSES: The meeting will be held at the Residence Inn Boise Downtown/City I. Summary ongoing development of a management II. Background strategy evaluation (MSE) for Atlantic Center at 400 S Capitol Blvd., Boise, ID III. Scope of the Investigation bluefin tuna. An MSE is a simulation 83702; 208–424–9999. IV. Margin Calculations that allows stakeholders (e.g., industry, FOR FURTHER INFORMATION CONTACT: V. Discussion of the Issues managers, scientists, and non- Katherine Cheney; NFMS West Coast Comment 1: Evraz and Enbridge Affiliation governmental organizations) to assess Region; 503–231–6730; email: Comment 2: Enbridge’s U.S. Sales how well different management [email protected]. Comment 3: Freight Revenue strategies, such as harvest control rules, SUPPLEMENTARY INFORMATION: Notice is Comment 4: Startup Adjustment could meet the objectives of the fishery. hereby given of a meeting of MAFAC’s Comment 5: Cost of Downgraded Pipe Specifically, in accordance with the CBP Task Force. The MAFAC was Comment 6: Parent Holding Company G&A outcomes from the 21st Special Meeting established by the Secretary of Expenses of ICCAT, the intersessional meeting Commerce (Secretary) and, since 1971, Comment 7: Major Input will focus on developing initial advises the Secretary on all living Comment 8: Impairment Loss operational management objectives for marine resource matters that are the VI. Recommendation the MSE. responsibility of the Department of [FR Doc. 2019–03316 Filed 2–26–19; 8:45 am] For the conference call, NMFS will Commerce. The MAFAC charter and BILLING CODE 3510–DS–P provide stakeholders with updates on meeting information are located online

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at https://www.fisheries.noaa.gov/topic/ of Information and Regulatory Affairs contain comments on the merits of the partners#marine-fisheries-advisory- (‘‘OIRA’’) in OMB, within 30 days of the ICR will be retained in the public committee-. The CBP Task Force reports notice’s publication Comments comment file and will be considered as to MAFAC and is being convened to regarding the burden estimated or any required under the Administrative develop recommendations for long-term other aspect of the information Procedure Act and other applicable goals to meet Columbia Basin salmon collection, including suggestions for laws, and may be accessible under the recovery, conservation needs, and reducing the burden, may be submitted Freedom of Information Act. harvest opportunities, in the context of directly to the Office of Information and FOR FURTHER INFORMATION CONTACT: habitat capacity and other factors that Regulatory Affairs (‘‘OIRA’’) in OMB, Melissa Chiang, Counsel, Office of affect salmon mortality. More within 30 days of the notice’s General Counsel, Commodity Futures information is available at the CBP Task publication, by either of the following Trading Commission, (202) 418–5578; methods. Please identify the comments Force web page: http://www.westcoast. email: [email protected]. fisheries.noaa.gov/columbia_river/ by ‘‘OMB Control No. 3038–0043.’’ index.html. • By email addressed to: SUPPLEMENTARY INFORMATION: [email protected] or Title: Rules Relating to Review of Matters To Be Considered • By mail addressed to: The Office of National Futures Association Decisions The meeting time and agenda are Information and Regulatory Affairs, in Disciplinary, Membership Denial, subject to change. Meeting topics Office of Management and Budget, Registration, and Member include finalizing and approving the Attention Desk Officer for the Responsibility Actions (OMB Control phase I recommendations on qualitative Commodity Futures Trading No. 3038–0043). This is a request for and quantitative goals for salmon and Commission, 725 17th Street NW, extension of a currently approved steelhead throughout the basin and Washington, DC 20503. information collection. discussing approaches and initiating the A copy of all comments submitted to Abstract: 17 CFR part 171 rules integration and scenario planning work OIRA should be sent to the Commodity require a registered futures association of phase II. Futures Trading Commission to provide fair and orderly procedures (Commission) by either of the following Special Accommodations for membership and disciplinary methods. The copies should refer to actions. The Commission’s review of The meeting is physically accessible ‘‘OMB Control No. 3038–0085.’’ • decisions of registered futures to people with disabilities. Requests for By mail addressed to: Christopher associations in disciplinary, sign language interpretation or other Kirkpatrick, Secretary of the membership denial, registration, and auxiliary aids should be directed to Commission, Commodity Futures member responsibility actions is Katherine Cheney, 503–231–6730, by Trading Commission, Three Lafayette governed by Section 17(h)(2) of the March 8, 2019. Centre, 1155 21st Street NW, Commodity Exchange Act, 7 U.S.C. Washington, DC 20581; 21(h)(2). The rules establish procedures Dated: February 22, 2019. • By Hand Delivery/Courier to the and standards for Commission review of Samuel D. Rauch III, same address; or such actions, and the reporting Deputy Assistant Administrator for Fisheries, • Through the Commission’s website requirements included in the procedural National Marine Fisheries Service. at http://comments.cftc.gov. Please rules are either directly required by [FR Doc. 2019–03380 Filed 2–26–19; 8:45 am] follow the instructions for submitting Section 17 of the Act or are necessary BILLING CODE 3510–22–P comments through the website. A copy of the supporting statement to the type of appellate review role for the collection of information Congress intended the Commission to undertake when it adopted that COMMODITY FUTURES TRADING discussed herein may be obtained by provision. COMMISSION visiting http://RegInfo.gov. All comments must be submitted in An agency may not conduct or Agency Information Collection English, or if not, accompanied by an sponsor, and a person is not required to Activities Under OMB Review English translation. Comments will be respond to, a collection of information posted as received to http:// unless it displays a currently valid OMB AGENCY: Commodity Futures Trading www.cftc.gov. You should submit only control number. The OMB control Commission. information that you wish to make numbers for the Commission’s ACTION: Notice. available publicly. If you wish the regulations were published on Commission to consider information December 30, 1981. See 46 FR 63035 SUMMARY: In compliance with the that you believe is exempt from (Dec. 30, 1981). The Federal Register Paperwork Reduction Act of 1995 disclosure under the Freedom of notice with a 60-day comment period (‘‘PRA’’), this notice announces that the Information Act, a petition for soliciting comments on this collection Information Collection Request (‘‘ICR’’) confidential treatment of the exempt of information was published on abstracted below has been forwarded to information may be submitted according November 14, 2018 (83 FR 56827). The the Office of Management and Budget to the procedures established in § 145.9 Commission received no relevant (‘‘OMB’’) for review and comment. The of the Commission’s regulations.1 The comments. ICR describes the nature of the Commission reserves the right, but shall Burden Statement: The respondent information collection and its expected have no obligation, to review, pre- burden for this collection is estimated to costs and burden. screen, filter, redact, refuse or remove average 1 hour per response. This DATES: Comments must be submitted on any or all of your submission from estimate includes the time needed to or before March 29, 2019. http://www.cftc.gov that it may deem to transmit decisions of disciplinary, ADDRESSES: Comments regarding the be inappropriate for publication, such as membership denial, registration, and burden estimated or any other aspect of obscene language. All submissions that member responsibility actions to the the information collection, including have been redacted or removed that Commission for review. The total suggestions for reducing the burden, estimated annual burden of 3 hours is may be submitted directly to the Office 1 17 CFR 145.9. determined by the following:

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Respondents/Affected Entities: Section 3 of the CUAC Charter states: BUREAU OF CONSUMER FINANCIAL Individuals or entities filing appeals ‘‘The purpose of the Advisory Council PROTECTION from disciplinary and membership is to advise the Bureau in the exercise decisions by National Futures of its functions under the federal Community Bank Advisory Council Association. consumer financial laws as they pertain Meeting Estimated number of respondents: 1. to community banks with total assets of AGENCY: Bureau of Consumer Financial Estimated number of responses: 3. $10 billion or less.’’ Estimated total annual burden on Protection. respondents: 3 hours. II. Agenda ACTION: Notice of public meeting. Frequency of collection: On occasion. SUMMARY: There are no capital costs or operating The Consumer Advisory Board will Under the Federal Advisory and maintenance costs associated with discuss policy issues related to financial Committee Act (FACA), this notice sets this collection. technology and other trends and themes forth the announcement of a public meeting of the Community Bank in consumer finance. A more detailed (Authority: 44 U.S.C. 3501 et seq.) Advisory Council (CBAC or Council) of meeting agenda will be published on the Dated: February 22, 2019. the Bureau of Consumer Financial Bureau’s website. Robert N. Sidman, Protection (Bureau). The notice also Deputy Secretary of the Commission. Persons who need a reasonable describes the functions of the Council. accommodation to participate should [FR Doc. 2019–03371 Filed 2–26–19; 8:45 am] DATES: The meeting date is Thursday, contact [email protected], BILLING CODE 6351–01–P March 14, 2018, from approximately 202–435–9EEO, 1–855–233–0362, or 9:30 a.m. to 5:15 p.m. eastern daylight 202–435–9742 (TTY) at least ten time. BUREAU OF CONSUMER FINANCIAL business days prior to the meeting or ADDRESSES: The meeting location is the PROTECTION event to request assistance. The request Bureau of Consumer Financial must identify the date, time, location, Protection, 1700 G Street NW, Credit Union Advisory Council Meeting and title of the meeting or event, the Washington, DC 20552. nature of the assistance requested, and FOR FURTHER INFORMATION CONTACT: Kim AGENCY: Bureau of Consumer Financial contact information for the requester. George, Outreach and Engagement Protection. The Bureau will strive to provide, but Associate, Consumer Advisory Board ACTION: Notice of public meeting. cannot guarantee that accommodation and Councils Office, External Affairs, at _ SUMMARY: Under the Federal Advisory will be provided for late requests. 202–435–7884, CFPB Committee Act (FACA), this notice sets Written comments will be accepted [email protected]. If forth the announcement of a public from interested members of the public you require this document in an meeting of the Credit Union Advisory and should be sent to CFPB_ alternative electronic format, please contact [email protected]. Council (CUAC or Council) of the [email protected], a Bureau of Consumer Financial minimum of seven (7) days in advance SUPPLEMENTARY INFORMATION: Protection (Bureau). The notice also of the meeting. The comments will be I. Background describes the functions of the Council. provided to the CUAC members for Section 2 of the CBAC Charter DATES: The meeting date is Thursday, consideration. provides that pursuant to the executive March 14, 2019, from approximately Individuals who wish to join the and administrative powers conferred on 9:30 a.m. to 5:15 p.m. eastern daylight the Bureau of Consumer Financial time. Credit Union Advisory Council must RSVP via this link https://consumer- Protection by section 1012 of the Dodd- ADDRESSES: The meeting location is the financial-protection-bureau.forms.fm/ Frank Wall Street Reform and Consumer Bureau of Consumer Financial spring-2018-cfpb-advisory-committee- Protection Act (Dodd-Frank Act), the Protection, 1700 G Street NW, Director established the Community Washington, DC 20552. meetings-in-washington-dc by noon, March 13, 2019. Members of the public Bank Advisory Council under agency FOR FURTHER INFORMATION CONTACT: Kim must RSVP by the due date. authority. George, Outreach and Engagement Section 3 of the CBAC Charter states: Associate, Consumer Advisory Board III. Availability ‘‘The purpose of the Advisory Council and Councils Office, External Affairs, at is to advise the Bureau in the exercise 202–435–7884, CFPB_ The Council’s agenda will be made of its functions under the federal [email protected]. If available to the public on Wednesday, consumer financial laws as they pertain you require this document in an February 27, 2019, via to community banks with total assets of alternative electronic format, please consumerfinance.gov. Individuals $10 billion or less.’’ contact [email protected]. should express in their RSVP if they II. Agenda SUPPLEMENTARY INFORMATION: require a paper copy of the agenda. The Consumer Advisory Board will I. Background A recording and summary of this meeting will be available after the discuss policy issues related to financial Section 2 of the CUAC Charter meeting on the Bureau’s website technology and other trends and themes provides that pursuant to the executive in consumer finance. A more detailed consumerfinance.gov. and administrative powers conferred on meeting agenda will be published on the the Bureau of Consumer Financial Dated: February 21, 2019. Bureau’s website. Protection by section 1012 of the Dodd- Kirsten Sutton, Persons who need a reasonable Frank Wall Street Reform and Consumer Chief of Staff, Bureau of Consumer Financial accommodation to participate should _ Protection Act (Dodd-Frank Act), the Protection. contact CFPB [email protected], Director established the Credit Union [FR Doc. 2019–03446 Filed 2–26–19; 8:45 am] 202–435–9EEO, 1–855–233–0362, or Advisory Council under agency 202–435–9742 (TTY) at least ten BILLING CODE 4810–AM–P authority. business days prior to the meeting or

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event to request assistance. The request Office, External Affairs, at 202–435– 2018-cfpb-advisory-committee- must identify the date, time, location, 7884, CFPB_CABandCouncilsEvents@ meetings-in-washington-dc by noon, and title of the meeting or event, the cfpb.gov. If you require this document March 13, 2019. Members of the public nature of the assistance requested, and in an alternative electronic format, must RSVP by the due date. contact information for the requester. please contact CFPB_Accessibility@ III. Availability The Bureau will strive to provide, but cfpb.gov. The Board’s agenda will be made cannot guarantee that accommodation SUPPLEMENTARY INFORMATION: will be provided for late requests. available to the public on Wednesday Written comments will be accepted I. Background February 27, 2019, via from interested members of the public consumerfinance.gov. Individuals _ Section 3 of the Charter of the and should be sent to CFPB Consumer Advisory Board states that: should express in their RSVP if they [email protected], a The purpose of the Board is outlined require a paper copy of the agenda. minimum of seven (7) days in advance in section 1014(a) of the Dodd-Frank A recording and summary of this of the meeting. The comments will be Act, which states that the Board shall meeting will be available after the provided to the CBAC members for ‘‘advise and consult with the Bureau in meeting on the Bureau’s website consideration. the exercise of its functions under the consumerfinance.gov. Individuals who wish to join the Federal consumer financial laws’’ and Dated: February 21, 2019. Community Bank Advisory Council ‘‘provide information on emerging Kirsten Sutton, must RSVP via this link https:// practices in the consumer financial consumer-financial-protection- Chief of Staff, Bureau of Consumer Financial products or services industry, including Protection. bureau.forms.fm/spring-2018-cfpb- regional trends, concerns, and other advisory-committee-meetings-in- [FR Doc. 2019–03445 Filed 2–26–19; 8:45 am] relevant information.’’ washington-dc by noon, March 13, 2019. BILLING CODE 4810–25–P To carry out the Board’s purpose, the Members of the public must RSVP by scope of its activities shall include the due date. providing information, analysis, and DEPARTMENT OF DEFENSE III. Availability recommendations to the Bureau. The The Council’s agenda will be made Board will generally serve as a vehicle Office of the Secretary for market intelligence and expertise for available to the public on Wednesday, [Docket ID: DOD–2019–OS–0014] February 27, 2019, via the Bureau. Its objectives will include identifying and assessing the impact on consumerfinance.gov. Individuals Privacy Act of 1974; System of consumers and other market should express in their RSVP if they Records require a paper copy of the agenda. participants of new, emerging, and A recording and summary of this changing products, practices, or AGENCY: Office of Secretary of Defense, meeting will be available after the services. DoD. meeting on the Bureau’s website II. Agenda ACTION: Notice of a modified system of consumerfinance.gov. records notice. The Consumer Advisory Board will Dated: February 21, 2019. discuss policy issues related to financial SUMMARY: The system contains Kirsten Sutton, technology and other trends and themes personnel, employment, and pay data Chief of Staff, Bureau of Consumer Financial in consumer finance. A more detailed on current and former military and Protection. meeting agenda will be published on the civilian personnel and survivors and [FR Doc. 2019–03447 Filed 2–26–19; 8:45 am] Bureau’s website. dependents of military personnel. BILLING CODE 4810–AM–P Persons who need a reasonable System data is used to conduct accommodation to participate should computer matches with various agencies contact [email protected], in accordance with the Computer BUREAU OF CONSUMER FINANCIAL 202–435–9EEO, 1–855–233–0362, or Matching and Privacy Protection Act of PROTECTION 202–435–9742 (TTY) at least ten 1988. This proposed routine use will Consumer Advisory Board Meetings business days prior to the meeting or enable the conducting of a match with event to request assistance. The request state public assistance agencies to AGENCY: Bureau of Consumer Financial must identify the date, time, location, continue. Protection. and title of the meeting or event, the DATES: Comments will be accepted on or ACTION: Notice of public meeting. nature of the assistance requested, and contact information for the requester. before March 29, 2019. This proposed SUMMARY: Under the Federal Advisory The Bureau will strive to provide, but action will be effective on the date Committee Act (FACA), this notice sets cannot guarantee that accommodation following the end of the comment forth the announcement of a public will be provided for late requests. period unless comments are received meeting of the Consumer Advisory Written comments will be accepted which result in a contrary Board (CAB or Board) of the Bureau of from interested members of the public determination. Consumer Financial Protection and should be sent to CFPB_ ADDRESSES: You may submit comments, (Bureau). The notice also describes the [email protected], a identified by docket number and title, functions of the Board. minimum of seven (7) days in advance by any of the following methods: DATES: The meeting date is Thursday, of the meeting. The comments will be * Federal Rulemaking Portal: http:// March 14, 2019, from approximately provided to the CAB members for www.regulations.gov. 9:30 a.m. to 5:15 p.m. eastern daylight consideration. Follow the instructions for submitting time. Individuals who wish to join the comments. FOR FURTHER INFORMATION CONTACT: Kim Consumer Advisory Board must RSVP * Mail: Department of Defense, Office George, Outreach and Engagement via this link https://consumer-financial- of the Chief Management Officer, Associate, Advisory Board and Councils protection-bureau.forms.fm/spring- Directorate of Oversight and

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Compliance, 4800 Mark Center Drive, published December 23, 2016 maintained and used to conduct Mailbox #24, Suite 08D09, Alexandria, (December 23, 2016, 81 FR 94424). longitudinal, statistical, and analytical VA 22350–1700. Dated: February 22, 2019. studies and computing demographic reports. No personal identifiers will be Instructions: All submissions received Aaron T. Siegel, must include the agency name and included in the demographic data Alternate OSD Federal Register Liaison reports. All requests for Service specific docket number for this Federal Register Officer, Department of Defense. document. The general policy for drug testing demographic data will be comments and other submissions from SYSTEM NAME AND NUMBER approved by the Service designated drug testing program office. All requests members of the public is to make these Defense Manpower Data Center Data for DoD wide drug testing demographic submissions available for public Base, DMDC 01 viewing on the internet at http:// data will be approved by the DoD www.regulations.gov as they are SECURITY CLASSIFICATION: Coordinator for Drug Enforcement received without change, including any Unclassified. Policy and Support, 1510 Defense personal identifiers or contact Pentagon, Washington, DC 20301–1510. information. SYSTEM LOCATION: DMDC web usage data will be used to Naval Postgraduate School Computer validate continued need for user access FOR FURTHER INFORMATION CONTACT: Ms. Center, Naval Postgraduate School, to DMDC computer systems and Luz D. Ortiz, Chief, Records, Privacy Monterey, CA 93943–5000. databases, to address problems and Declassification Division (RPDD), associated with web access, and to 1155 Defense Pentagon, Washington, DC SYSTEM MANAGER(S): ensure access is only for official 20311–1155, or by phone at (571) 372– Deputy Director, Defense Manpower purposes. 0478. Data Center, DoD Center Monterey Bay, 400 Gigling Road, Seaside, CA 93955– CATEGORIES OF INDIVIDUALS COVERED BY THE SUPPLEMENTARY INFORMATION: An SYSTEM: 6771. additional routine use needs to be All Army, Navy, Air Force, Marine added to the system of records notice AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Corps, and Coast Guard officer and due to a change in the process of 5 U.S.C. App. 3 (Pub. L. 95–452, as enlisted personnel serving on active transferring data in the execution of the amended (Inspector General Act of duty from July 1, 1968 and after or were Computer Matching Agreement (CMA 1978)); 10 U.S.C. 136, Under Secretary a member of a reserve component since #86) also known as the PARIS of Defense for Personnel and Readiness; July 1975 (hereafter the ‘‘Armed Agreement. CMA #86 helps identify 10 U.S.C. 1562, Database on Domestic Forces’’); retired Armed Forces individuals receiving both federal Violence Incidents; 20 U.S.C. 1070(f)(4), personnel; active and retired members compensation and pension benefits and Higher Education Opportunity Act; of the commissioned corps of the public assistance benefits under federal Public Law 106–265, Federal Long-Term National Oceanic and Atmospheric programs administered by the states and Care Insurance; 10 U.S.C. 2358, Administration (NOAA) and the Public to verify public assistance clients’ Research and Development Projects; and Health Service (PHS) (with Armed income circumstances declarations. E.O. 9397 (SSN), as amended. Forces above, hereafter referred to as the This agreement is in accordance with ‘‘Uniformed Services’’). All individuals the amended section 1903(r) of the PURPOSE(S) OF THE SYSTEM: examined to determine eligibility for Social Security Act which requires The purpose of the system of records military service at an Armed Forces states to maintain eligibility is to provide a single central facility Entrance and Examining Station from determination systems which provide within the Department of Defense to July 1, 1970, and later; Current and data matching through the Public assess manpower trends, support former DoD civilian employees since Assistance Reporting Information personnel and readiness functions, to January 1, 1972. Veterans using the System (PARIS) or a successor system. perform longitudinal statistical Veterans Education Assistance Program The Agreement is between DoD analyses, identify current and former (VEAP) from January 1977 through June (recipient/matching agency), the state DoD civilian and Armed Forces 1985; Participants in the Department of public assistance agencies (SPAAs— personnel for purposes of detecting Health and Human Services National source agencies) and the Department of fraud and abuse of pay and benefit Longitudinal Survey; Survivors of Health Human Services (HHS— programs, to register current and former retired Armed Forces personnel eligible facilitating agency). HHS no longer DoD civilian and Armed Forces for or currently receiving disability facilitates the transfer of data; the data personnel and their authorized payments or disability income transfer is made directly from the dependents for purposes of obtaining compensation from the Department of SPAAs to DoD. For this reason, the medical examination, treatment or other Veterans Affairs; surviving spouses of routine use of sharing this information benefits to which they are qualified. To active or retired deceased Armed Forces with the SPAAs must be added to the collect debts owed to the United States personnel; 100% disabled veterans and system of records notice. Government and state and local their survivors; and survivors of retired The proposed systems reports, as governments. Information will be used officers of NOAA and PHS eligible for, required by the Privacy Act, as by agency officials and employees, or or are currently receiving, Federal amended, were submitted on December authorized contractors, and other DoD payments due to the death of the retiree; 14, 2018, to the House Committee on Components in the preparation of Individuals receiving disability Oversight and Government Reform, the studies and policy as related to the compensation from the Department of Senate Committee on Homeland health and well-being of current and Veterans Affairs or who are covered by Security and Governmental Affairs, and past Armed Forces and DoD-affiliated a Department of Veterans Affairs’ the Office of Management and Budget personnel; to respond to Congressional insurance or benefit program; (OMB) pursuant to Section 6 of OMB and Executive branch inquiries; and to dependents of active and retired Circular No. A–108, ‘‘Federal Agency provide data or documentation relevant members of the Uniformed Services, Responsibilities for Review, Reporting, to the testing or exposure of individuals. selective service registrants; All Federal and Publication under the Privacy Act,’’ Armed Forces drug test records will be civilian retirees; All non-appropriated

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funded individuals employed by the under, gross annuity, length of service, for the purpose of identifying military Department of Defense; Individuals who annuity commencing date, former retired pay and survivor benefit were or may have been the subject of employing agency and home address. payments for use in the administration tests involving chemical or biological These records provided by OPM for of the DVA’s Compensation and Pension human subject testing; and individuals approved computer matching; Non- program (38 U.S.C. 5106). The inquiring or providing information to appropriated fund employment/ information is to be used to process all the Department of Defense concerning personnel records consist of Social DVA award actions more efficiently, such testing; Individuals with Security Number (SSN), name, and reduce subsequent overpayment authorized web access to DMDC work address; Military drug test records collection actions, and minimize computer systems and databases. containing the Social Security Number erroneous payments. (SSN), date of specimen collection, date e. To conduct computer matching CATEGORIES OF RECORDS IN THE SYSTEM: test results reported, reason for test, test programs regulated by the Privacy Act Computerized personnel/ results, base/area code, unit, service, of 1974, as amended (5 U.S.C. 552a), for employment/pay records consisting of status (active/reserve), and location the purpose of: name, Service Number, Selective code of testing laboratory; Names of (1) Providing full identification of Service Number, Social Security individuals, as well as DMDC assigned active duty Uniformed Service Number (SSN), DoD Identification identification numbers, and other user- personnel, including full time National Number, citizenship data, compensation identifying data, such as organization, Guard/Reserve support personnel, for data, demographic information such as Social Security Number (SSN), email use in the administration of DVA’s home town, age, sex, race, and address, phone number, of those having Compensation and Pension benefit educational level; civilian occupational web access to DMDC computer systems program. The information is used to information; performance ratings of DoD and databases, to include dates and determine continued eligibility for DVA civilian employees and military times of access. disability compensation to recipients members; reasons given for leaving returning to active duty so benefits can military service or DoD civilian service; RECORD SOURCE CATEGORIES: be adjusted or terminated as required civilian and military acquisition work Record sources are individuals via and steps taken by DVA to collect any force warrant location, training and job survey questionnaires, the Uniformed resulting over payment (38 U.S.C. specialty information; military Services, the Department of Veteran 5304(c)). personnel information such as rank, Affairs, the Office of Personnel (2) Providing identification of reserve assignment/deployment, length of Management, Environmental Protection duty, including full time support service, military occupation, aptitude Agency, Department of Health and National Guard/Reserve Armed Forces scores, post-service education, training, Human Services, Department of Energy, personnel, to the DVA, for the purpose and employment information for Executive Office of the President, and of deducting reserve time served from veterans; participation in various in- the Selective Service System. any DVA disability compensation paid service education and training or waiver of VA benefit. The law (10 programs; date of award of certification ROUTINE USES OF RECORDS MAINTAINED IN THE U.S.C. 12316) prohibits receipt of of military experience and training; SYSTEM, INCLUDING CATEGORIES OF USERS AND reserve pay and DVA compensation for THE PURPOSES OF SUCH USES: military hospitalization and medical the same time period, however, it does treatment, immunization, and In addition to those disclosures permit waiver of DVA compensation to pharmaceutical dosage records; home generally permitted under 5 U.S.C. draw reserve pay. and work addresses; and identities of 552a(b) of the Privacy Act of 1974, these f. To provide identifying Uniformed individuals involved in incidents of records may specifically be disclosed Service personnel data to the DVA for child and spouse abuse, and outside the DoD as a routine use the purpose of notifying such personnel information about the nature of the pursuant to 5 U.S.C. 552a(b)(3) as of information relating to educational abuse and services provided; follows: assistance as required by the Veterans CHAMPUS claim records containing 1. To the Department of Veterans Programs Enhancement Act of 1998 (38 enrollee, patient and health care facility, Affairs (DVA): U.S.C. 3011 and 3034). provided data such as cause of a. To provide Uniformed Service 2. To the Office of Personnel treatment, amount of payment, name personnel and pay data for present and Management (OPM): and Social Security or tax identification former Uniformed Service personnel for a. Consisting of personnel/ number of providers or potential the purpose of evaluating use of employment/financial data for the providers of care; Selective Service veterans’ benefits, validating benefit purpose of carrying out OPM’s System registration data; Primary and eligibility and maintaining the health management functions. Records secondary fingerprints of Military and well being of veterans and their disclosed concern pay, benefits, Entrance Processing Command family members. retirement deductions and any other (MEPCOM) applicants; Department of b. To provide identifying Armed information necessary for those Veterans Affairs disability payment Service personnel data to the DVA and management functions required by law records. Credit or financial data as its insurance program contractor for the (Pub. L. 83–598, 84–356, 86–724, 94– required for security background purpose of notifying separating eligible 455 and 5 U.S.C. 1302, 2951, 3301, investigations; Criminal history Reservists of their right to apply for 3372, 4118, 8347). information on individuals who Veteran’s Group Life Insurance coverage b. To conduct computer matching subsequently enter the military; Extracts under the Veterans Benefits programs regulated by the Privacy Act from Office of Personnel Management Improvement Act of 1996 (38 U.S.C. of 1974, as amended (5 U.S.C. 552a) for (OPM); OPM/CENTRAL–1, Civil Service 1968). the purpose of: Retirement and Insurance Records, c. To register eligible veterans and (1) Exchanging civil service and including postal workers covered by their dependents for DVA programs. Reserve personnel data to identify those Civil Service Retirement, containing d. Providing identification of former individuals of the Reserve forces Civil Service Claim number, date of Uniformed Service personnel and employed by the Federal government in birth, name, provision of law retired survivor’s financial benefit data to DVA a civilian position. The purpose of the

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match is to identify those particular U.S. national policy or security interests or Special Veterans’ Benefits (SVB). By individuals occupying critical positions (42 U.S.C. 653(e)). law (42 U.S.C. 1006 and 1383), the SSA as civilians and cannot be released for Note 2: is required to verify eligibility factors extended active duty in the event of Quarterly wage information is not and other relevant information provided mobilization. Employing Federal disclosed for those individuals by the SSI or SVB applicant from agencies are informed of the reserve performing intelligence or counter independent or collateral sources and status of those affected personnel so the intelligence functions and a obtain additional information as choice of terminating the position or the determination is made that disclosure necessary before making SSI or SVB reserve assignment can be made by the could endanger the safety of the determinations of eligibility, payment individual concerned. The authority for individual or compromise an ongoing amounts, or adjustments thereto. conducting the computer match is investigation or intelligence mission (42 b. To the Client Identification Branch contained in E.O. 11190, Providing for U.S.C. 653(n)). for the purpose of validating the the Screening of the Ready Reserve of a. To the Health Care Financing assigned Social Security Number for the Armed Forces. Administration (HCFA), DHHS for the individuals in DoD personnel and pay c. Matching for administrative purpose of monitoring HCFA files, using the SSA Enumeration purposes to include updated employer reimbursement to civilian hospitals for Verification System (EVS). addresses of Federal civil service Medicare patient treatment. The data c. To the Office of Disability and employees who are reservists and will ensure no Department of Defense Insurance Security Programs, for the demographic data on civil service physicians, interns, or residents are purpose of expediting disability employees who are reservists. counted for HCFA reimbursement to processing of wounded military service 3. To the Internal Revenue Service hospitals. members and veterans. (IRS) for the purpose of obtaining home b. To the Centers for Disease Control 6. To the Selective Service System addresses to contact Reserve component and the National Institutes of Mental (SSS) for the purpose of facilitating members for mobilization purposes and Health, DHHS, for the purpose of compliance of members and former for tax administration. For the purpose conducting studies concerned with the members of the Armed Forces, both of conducting aggregate statistical health and well being of Uniformed active and reserve, with the provisions analyses on the impact of Armed Forces Services personnel or veterans, to of the Selective Service registration personnel of actual changes in the tax include family members. regulations (50 U.S.C. App. 451 and laws and to conduct aggregate statistical c. To conduct computer matching E.O. 11623). analyses to life stream earnings of programs regulated by the Privacy Act 7. To the Department of Labor (DOL) current and former military personnel to of 1974, as amended (5 U.S.C. 552a), for to reconcile the accuracy of be used in studying the comparability of the Public Assistance Reporting unemployment compensation payments civilian and military pay benefits. To Information System (PARIS) for the made to former DoD civilian employees aid in administration of Federal Income purpose of determining continued and members of the Uniformed Services Tax laws and regulations, to identify eligibility and help eliminate fraud and by the states. To the Department of non-compliance and delinquent filers. abuse in benefit programs by identifying Labor to survey Armed Forces 4. To the Department of Health and individuals who are receiving Federal separations to determine the Human Services (DHHS): compensation or pension payments and effectiveness of programs assisting a. To the Office of the Inspector also are receiving payments pursuant to veterans to obtain employment. General, DHHS, for the purpose of Federal benefit programs being 8. To Federal and Quasi Federal identification and investigation of DoD administered by the States. civilian employees and Armed Forces 5. To the Social Security agencies, territorial, state, and local members who may be improperly Administration (SSA): governments to support personnel receiving funds under the Temporary a. To the Office of Research and functions requiring data on prior Armed Assistance for Needy Families (TANF). Statistics for the purpose of: Forces service credit for their employees b. To the Office of Child Support (1) Conducting statistical analyses of or for job applicants. Information Enforcement, Federal Parent Locator impact of military service and use of GI released includes name, Social Security Service, DHHS, pursuant to 42 U.S.C. Bill benefits on long term earnings. Number, and military or civilian 653 and 653a; to assist in locating (2) Obtaining current earnings data on address of individuals. To detect fraud, individuals for the purpose of individuals voluntarily leaving military waste and abuse pursuant to the establishing parentage; establishing, service or DoD civil employment so authority contained in the Inspector setting the amount of, modifying, or analytical personnel studies regarding General Act of 1978, as amended (Pub. enforcing child support obligations; or pay, retention and benefits may be L. 95–452) for the purpose of enforcing child custody or visitation conducted. determining eligibility for, and/or orders; and for conducting computer Note 3: continued compliance with, any Federal matching as authorized by E.O. 12953 to Earnings data obtained from the SSA benefit program requirements. facilitate the enforcement of child and used by DoD does not contain any 9. To state and local law enforcement support owed by delinquent obligors information identifying the individual investigative agencies to obtain military within the entire civilian Federal about whom the earnings data pertains. history information for the purpose of government and the Uniformed Services a. To conduct computer matching ongoing investigations. (active and retired). Identifying programs regulated by the Privacy Act 10. To Federal and Quasi Federal delinquent obligors will allow State of 1974, as amended (5 U.S.C. 552a) to agencies, territorial, state and local Child Support Enforcement agencies to the Bureau of Supplemental Security governments, and contractors and commence wage withholding or other Income for the purpose of verifying grantees for the purpose of supporting enforcement actions against the information provided to the SSA by research studies concerned with the obligors. applicants and recipients/beneficiaries, health and well being of Uniformed Note 1: who are retired members of the Service and retired personnel or Information requested by DHHS is not Uniformed Services or their survivors, veterans, to include family members. disclosed when it would contravene for Supplemental Security Income (SSI) DMDC will disclose information from

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this system of records for research 14. To Federal and State agencies, as instructions to the data files residing in purposes when DMDC: well as their contractors and grantees, other DMDC data bases. a. Determines the use or disclosure for purposes of providing military wage, (2) The Master File is retained does not violate legal or policy training, and educational information so permanently. At the end of the fiscal limitations under which the record was that Federal-reporting requirements, as year, a snapshot is taken and transferred provided, collected, or obtained; mandated by statute, such as the to the National Archives in accordance b. Determines the research purpose (1) Workforce Investment Act (29 U.S.C. with 36 CFR part 1228.270 and 36 CFR cannot be reasonably accomplished 2801, et seq.) and the Carl D. Perkins part 1234. unless the record is provided in Vocational and Applied Technology Act (3) Output records (electronic or individually identifiable form, and (2) (20 U.S.C. 2301, et seq.) can be satisfied. paper summary reports) are deleted or warrants the risk to the privacy of the 15. To Federal Agencies, including destroyed when no longer needed for individual that additional exposure of the Department of Education, to conduct operational purposes. Note: This the record might bring; computer matching programs regulated disposition instruction applies only to c. Requires the recipient to (1) by the Privacy Act of 1974, as amended record keeping copies of the reports establish reasonable administrative, (5 U.S.C. 552a), for the purpose of retained by DMDC. The DoD office technical, and physical safeguards to identifying dependent children of those requiring creation of the report should prevent unauthorized use or disclosure Armed Forces members killed in maintain its record keeping copy in of the record, and (2) remove or destroy Operation Iraqi Freedom and Operation accordance with NARA approved the information that identifies the Enduring Freedom (OIF/OEF) disposition instructions for such individual at the earliest time at which Afghanistan Only for possible benefits. reports. removal or destruction can be The DoD ‘Blanket Routine Uses’ set (4) System documentation accomplished consistent with the forth at the beginning of the Office of (codebooks, record layouts, and other purpose of the research project, unless the Secretary of Defense (OSD) system documentation) are retained the recipient has presented adequate compilation of systems of records permanently and transferred to the justification of a research or health notices apply to this system. National Archives along with the master nature for retaining such information, Note 5: file in accordance with 36 CFR part and (3) makes no further use or Military drug test information 1228.270 and 36 CFR part 1234. disclosure of the record except (A) in involving individuals participating in a emergency circumstances affecting the ADMINISTRATIVE, PHYSICAL, AND TECHNICAL drug abuse rehabilitation program shall health or safety of any individual, (B) SAFEGUARDS: be confidential and disclosed only for for use in another research project, Access to personal information is the purposes and under the under these same conditions, and with restricted to those requiring the records circumstances expressly authorized in written authorization of the Department, in the performance of their official 42 U.S.C. 290dd–2. This statute takes (C) for disclosure to a properly duties. Access to personal information precedence over the Privacy Act of identified person for the purpose of an is further restricted by the use of 1974, in regard to accessibility of such audit related to the research project, if Common Access Cards (CAC). Physical records except to the individual to information enabling research subjects entry is restricted by the use of locks, whom the record pertains. The DoD to be identified is removed or destroyed guards, and administrative procedures. ‘Blanket Routine Uses’ do not apply to at the earliest opportunity consistent All individuals granted access to this these types of records. with the purpose of the audit, or (D) system of records must complete when required by law; POLICIES AND PRACTICES FOR STORAGE OF Information Assurance and Privacy Act d. Secures a written statement RECORDS: training; all have been through the attesting to the recipient’s Electronic storage media. vetting process and have ADP ratings. understanding of, and willingness to RECORD ACCESS PROCEDURES: abide by these provisions. POLICIES AND PRACTICES FOR RETRIEVAL OF 11. To Federal and State agencies for RECORDS: Individuals seeking access to purposes of obtaining socioeconomic Records are retrieved by name, Social information about themselves contained information on Armed Forces personnel Security Number (SSN), DoD ID in this system should address written so analytical studies can be conducted number, occupation, or any other data inquiries to the Office of the Secretary with a view to assessing the present element contained in system. of Defense/Joint Staff Freedom of needs and future requirements of such Information Act Requester Service personnel. POLICIES AND PRACTICES FOR RETENTION AND Center, 1155 Defense Pentagon, 12. To Federal and state agencies for DISPOSAL OF RECORDS: Washington, DC 20301–1155. Written purposes of validating demographic The records are used to provide a requests should contain the name and data (e.g., Social Security Number, centralized system within the number of this system of records notice citizenship status, date and place of Department of Defense to assess along with the full name, Social birth, etc.) for individuals in Uniformed manpower trends, support personnel Security Number (SSN), date of birth, Service personnel and pay files so functions, perform longitudinal current address, and telephone number accurate information is available in statistical analyses, and conduct of the individual and be signed. In support of Uniformed Service scientific studies or medical follow-up addition, the requester must provide a requirements. programs and other related studies/ notarized statement or an unsworn 13. To the Bureau of Citizenship and analyses. Records are retained as declaration made in accordance with 28 Immigration Services, Department of follows: U.S.C. 1746, in the following format: Homeland Security, for purposes of (1) Input/source records are deleted or If executed within the United States, facilitating the verification of destroyed after data have been entered its territories, possessions, or individuals possibly eligible for into the master file or when no longer commonwealths: ‘‘I declare (or certify, expedited naturalization (Pub. L. 108– needed for operational purposes, verify, or state) under penalty of perjury 136, Section 1701, and E.O. 13269, whichever is later. Exception: Apply that the foregoing is true and correct. Expedited Naturalization). NARA-approved disposition Executed on (date). (Signature).’’

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If executed outside the United States: DEPARTMENT OF DEFENSE files, and survivor pay files (Office of ‘‘I declare (or certify, verify, or state) Personnel Management (OPM) civilian under penalty of perjury under the laws Office of the Secretary retired and survivor pay files will not be used). DMDC will return matched data of the United States of America that the [Docket ID: DOD–2019–OS–0015] foregoing is true and correct. Executed to the SPAA, which the SPAA will use on (date). (Signature).’’ Privacy Act of 1974; Matching Program to verify individuals’ continued Attorneys or other persons acting on eligibility to receive public assistance AGENCY: Office of the Secretary, behalf of an individual must provide benefits and, if ineligible, to take such Department of Defense (DoD). action as may be authorized by law and written authorization from the ACTION regulation to ensure fair and equitable individual for their representative to act : Notice of a new matching treatment in the delivery of and benefits on their behalf. program. attributable to funds provided by the SUMMARY: This Computer Matching Federal Government. HHS will support CONTESTING RECORD PROCEDURES: Agreement (CMA) identifies individuals each of SPAA’s efforts to ensure The Office of the Secretary of Defense receiving both federal compensation or appropriate participation in the rules for accessing records, contesting pension benefits and public assistance matching program and compliance with contents and appealing initial agency benefits under federal programs this agreement’s terms by assisting with determinations are published in Office administered by the states and verifies drafting the agreements and helping of the Secretary of Defense public assistance clients’ declarations of arrange signatures to the agreements. A Administrative Instruction 81; 32 CFR income circumstances. new routine use is concurrently being part 311; or may be obtained from the DATES: Comments will be accepted on or added to DoD System of Records Notice, system manager. before March 29, 2019. This proposed DMDC 01 to specifically address this action will be effective the day computer match. NOTIFICATION PROCEDURES: following the end of the comment Participating Agencies: The period unless comments are received Department of Defense (DoD), Defense Individuals seeking to determine which result in a contrary Manpower Data Center, DoD; whether information about themselves determination. Department of Health and Human is contained in this system should Services; and the State Public address written inquiries to the Privacy ADDRESSES: You may submit comments, identified by docket number and title, Assistance Agencies (SPAAs). Act Officer, Office of Freedom of Authority for Conducting the by any of the following methods: Information, Washington Headquarters Matching Program: Sections 402, 1137, • Federal Rulemaking Portal: http:// Services, 1155 Defense Pentagon, and 1903(r) of the Social Security Act www.regulations.gov. Washington, DC 20301–1155. Written (the Act), 42 U.S.C. §§ 602, a 1320b–7, Follow the instructions for submitting requests should contain the full name, and 1396b(r). comments. Social Security Number (SSN), date of Purpose(s): This matching program • Mail: Department of Defense, Office birth, current address, and telephone identifies individuals receiving both of the Chief Management Officer, number of the individual. In addition, federal compensation or pension Directorate of Oversight and the requester must provide a notarized benefits and public assistance benefits Compliance, 4800 Mark Center Drive, statement or an unsworn declaration under federal programs administered by Mailbox #24, Suite 08D09, Alexandria, made in accordance with 28 U.S.C. the states and to verify public assistance VA 22350–1700. 1746, in the following format: clients’ declarations of income Instructions: All submissions received circumstances. If executed within the United States, must include the agency name and Categories of Individuals: The its territories, possessions, or docket number for this Federal Register categories of individuals whose commonwealths: ‘‘I declare (or certify, document. The general policy for information is involved in the matching verify, or state) under penalty of perjury comments and other submissions from program are: that the foregoing is true and correct. members of the public is to make these Executed on (date). (Signature).’’ submissions available for public —Individuals who apply for or receive public assistance benefits under If executed outside the United States: viewing on the internet at http:// federal programs administered by the ‘‘I declare (or certify, verify, or state) www.regulations.gov as they are states (Medicaid, Temporary under penalty of perjury under the laws received without change, including any Assistance to Needy Families, and of the United States of America that the personal identifiers or contact Supplemental Nutrition Assistance foregoing is true and correct. Executed information. Program); and on (date). (Signature).’’ FOR FURTHER INFORMATION CONTACT: Ms. —Individuals who receive Attorneys or other persons acting on Cheryl D. Jenkins, Management Analyst, compensation from the DoD (military, behalf of an individual must provide Defense Privacy, Civil Liberties, and civilian, survivor, and retired). written authorization from the Transparency Division at (703) 571– Categories of Records: The categories individual for their representative to act 0070. of records involved in the matching on their behalf. SUPPLEMENTARY INFORMATION: Each program are DoD military and civilian participating State Public Assistance pay records, military retired pay EXEMPTIONS PROMULGATED FOR THE SYSTEM: Agency (SPAA) will provide the records, and survivor pay records. The None. Department of Defense, Defense matching program will compare the Manpower Data Center (DMDC) with Social Security Numbers (SSNs), using HISTORY: finder files containing identifying and all nine digits, in quarterly SPAA finder other data about public assistance files about individuals applying for November 23, 2011, 76 FR 72391. applicants or recipients, which DMDC public assistance benefits with DoD pay [FR Doc. 2019–03390 Filed 2–26–19; 8:45 am] will match against DoD military and records. The SPAA finder files will BILLING CODE 5001–06–P civilian pay files, military retired pay contain the client’s name, SSN, date of

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birth, address, sex, marital status, SUPPLEMENTARY INFORMATION: DEPARTMENT OF EDUCATION number of dependents, information Background and Purpose. Executive regarding the specific public assistance Order 11964 of January 19, 1977 and 33 Applications for New Awards; Full- benefit being received, and such other U.S.C. 1605 provide that the Service Community Schools Program data as considered necessary. The data requirements of the 72 COLREGS, as to AGENCY: Office of Elementary and elements that will be provided to a the number, position, range, or arc of Secondary Education, Department of SPAA about a DoD affiliated individual visibility of lights or shapes, as well as Education. whose nine digit SSN matches a SSN in to the disposition and characteristics of ACTION: Notice. a quarterly SPAA file include (as sound-signaling appliances, shall not applicable): individual’s name; SSN; apply to a vessel or class of vessels of SUMMARY: The Department of Education active or retired; if active, military the Navy where the Secretary of the (Department) is issuing a notice inviting service or employing agency; and applications for fiscal year (FY) 2019 for current work or home address; salary Navy shall find and certify that, by reason of special construction or the Full-Service Community Schools related information and such other data (FSCS) program, Catalog of Federal as considered necessary. purpose, it is not possible for such vessel(s) to comply fully with the Domestic Assistance (CFDA) number System of Records: Defense 84.215J. Manpower Data Center Data Base provisions without interfering with the (DMDC 01), 76 FR 72391 (Nov. 23, special function of the vessel(s). Notice DATES: 2011). of issuance of a Certificate of Alternate Applications Available: February 27, 2019. Dated: February 22, 2019. Compliance must be made in the Federal Register. Deadline for Notice of Intent to Apply: Aaron T. Siegel, March 18, 2019. Alternate OSD Federal Register Liaison In accordance with 33 U.S.C. 1605, Date of Pre-Application Webinar: For Officer, Department of Defense. the DAJAG (Admiralty and Maritime information about the pre-application [FR Doc. 2019–03420 Filed 2–26–19; 8:45 am] Law), under authority delegated by the webinar, visit the Full-Service BILLING CODE 5001–06–P Secretary of the Navy, hereby finds and Community Schools (FSCS) website at: certifies that USS DELAWARE (SSN https://innovation.ed.gov/what-we-do/ 791) is a vessel of special construction parental-options/full-service- DEPARTMENT OF DEFENSE or purpose, and that, with respect to the community-schools-program-fscs/ position of the following navigational Department of the Navy applicant-info-and-eligibility/. lights, it is not possible to comply fully Deadline for Transmittal of Certificate of Alternate Compliance for with the requirements of the provisions Applications: April 15, 2019. USS DELAWARE (SSN 791) enumerated in the 72 COLREGS without Deadline for Intergovernmental interfering with the special function of Review: June 27, 2019. AGENCY: Department of the Navy, DoD. the vessel: ADDRESSES: For the addresses for ACTION: Notice of issuance of Certificate obtaining and submitting an of Alternate Compliance. Rule 23(a) and Annex I, paragraph 2(a)(i), pertaining to the vertical application, please refer to our Common Instructions for Applicants to SUMMARY: The U.S. Navy hereby placement of the masthead light, and Department of Education Discretionary announces that a Certificate of Alternate Annex I, paragraph 2(f)(i), pertaining to Grant Programs, published in the Compliance has been issued for USS the masthead light being above and Federal Register on February 13, 2019 DELAWARE (SSN 791). Due to the clear of all other lights and obstructions; (84 FR 3768), and available at special construction and purpose of this Rule 30(a), Rule 21(e), and Annex I, www.govinfo.gov/content/pkg/FR-2019- vessel, the Deputy Assistant Judge paragraph 2(k), pertaining to the vertical 02-13/pdf/2019-02206.pdf. Advocate General (DAJAG) (Admiralty separation of the anchor lights, vertical and Maritime Law) has determined that FOR FURTHER INFORMATION CONTACT: it is a vessel of the Navy which, due to placement of the forward anchor light Michelle Johnson Armstrong, U.S. its special construction and purpose, above the hull, and the arc of visibility Department of Education, 400 Maryland cannot comply fully with the certain of all-around lights; Avenue SW, Room 3C118, Washington, provisions of the International Rule 23(a) and Annex I, paragraph DC 20202. Telephone: (202) 205–1729. Regulations for Preventing Collisions at 3(b), pertaining to the location of the Email: [email protected]. Sea, 1972 (72 COLREGS) without sidelights; and If you use a telecommunications interfering with its special functions as device for the deaf (TDD) or a text Rule 21(c), pertaining to the location telephone (TTY), call the Federal Relay a naval ship. The intended effect of this and arc of visibility of the sternlight. notice is to warn mariners in waters Service (FRS), toll free, at 1–800–877– where 72 COLREGS apply. The DAJAG (Admiralty and Maritime 8339. DATES: This Certificate of Alternate Law) further finds and certifies that SUPPLEMENTARY INFORMATION: these navigational lights are in closest Compliance is effective February 27, Full Text of Announcement 2019 and is applicable beginning possible compliance with the applicable February 14, 2019. provision of the 72 COLREGS. I. Funding Opportunity Description FOR FURTHER INFORMATION CONTACT: Authority: 33 U.S.C. 1605(c), E.O. 11964. Purpose of Program: The Full-Service Lieutenant Commander Matt Rector, Dated: February 21, 2019. Community Schools program is JAGC, U.S. Navy, Admiralty Attorney, authorized by sections 4621–4623 and Office of the Judge Advocate General, M.S. Werner, 4625 of the Elementary and Secondary Admiralty and Maritime Law Division Commander, Judge Advocate General’s Corps, Education Act, as amended by the Every (Code 11), 1322 Patterson Ave. SE, Suite U.S. Navy, Federal Register Liaison Officer. Student Succeeds Act (ESEA). This 3000, Washington Navy Yard, DC [FR Doc. 2019–03341 Filed 2–26–19; 8:45 am] program provides support for the 20374–5066, telephone number: 202– BILLING CODE 3810–FF–P planning, implementation, and 685–5040, or [email protected]. operation of full-service community

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schools that improve the coordination, efficacy of integrated student supports, preference priorities. Applicants must integration, accessibility, and expanded learning time and identify the priorities they are seeking effectiveness of services for children opportunities, and family and points for in order to receive those and families, particularly for children community engagement as intervention points. attending high-poverty schools, strategies.’’ 2 These priorities are: including high-poverty rural schools. Over the last decade, the field has Competitive Preference Priority 1— Background: Full-service community observed a wide range of practices Rural Districts-Small and Rural or Rural schools provide comprehensive coordinated and implemented in full- and Low-Income. (0 or 2 points). academic, social, and health services for service community schools. Assuming The Secretary gives priority to students, students’ family members, and strong social capital, stable leadership, applicants that include an LEA that is community members that are designed and a strong instructional program, full- currently eligible under the Small Rural to improve education outcomes for service community schools have been School Achievement (SRSA) program or children. The growing interest at the associated with improved attendance, the Rural and Low-Income School State and local level in community student achievement, and student (RLIS) program, authorized under title schools,1 also known as full-service behavior and youth development.3 V, part B (sections 5211 and 5221) of the community schools, coupled with this Priorities: This notice contains one ESEA. Applicants may determine competition, present an opportunity for absolute priority and four competitive whether a particular LEA is eligible for nationwide school improvement. The preference priorities. In accordance with these programs by referring to ESEA offers flexibilities at the State and 34 CFR 75.105(b)(2)(iv), the absolute information on the following local levels to implement strategies priority is from section 4625(b)(1)(A) of Department websites: for the SRSA supported by community schools, such the ESEA. The competitive preference program, https://www2.ed.gov/ as coordination of school and priorities are from sections programs/reapsrsa/eligible16/ community resources (ESEA sections 4625(b)(1)(B), 4625(b)(2), 4625(b)(3), index.html and for the RLIS program, 1114(b)(5) and 1115(b)(2)) and and 8101(21)(A)(i) of the ESEA and 34 https://www2.ed.gov/programs/ afterschool programming and support CFR 75.226(c). reaprlisp/eligibility.html. for a community school coordinator Absolute Priority: For FY 2019, and Note: An LEA includes a public charter (ESEA section 4108(a)(5)(H)). If a State any subsequent year in which we make school that operates as an LEA. educational agency (SEA) or local awards from the list of unfunded Competitive Preference Priority 2— educational agency (LEA) (as defined in applications from this competition, this Broadly Representative Consortiums. (0 this notice) lacks the resources to priority is an absolute priority. Under 34 or 1 point). implement community schools at scale, CFR 75.105(c)(3) we consider only The Secretary gives priority to an it can productively begin in applications that meet this priority. applicant that demonstrates that it is a neighborhoods where community This priority is: consortium comprised of a broad schools are most needed and, therefore, Eligible entities that will serve two or more full-service community schools representation of stakeholders. students are most likely to benefit. Full- Competitive Preference Priority 3— service community schools must be eligible for a schoolwide program (as defined in this notice) under section History of Effectiveness. (0 or 1 point). operated in a manner consistent with The Secretary gives priority to an 1114(b) of the ESEA as part of a nondiscrimination requirements applicant that demonstrates that it is a community- or district-wide strategy. contained in the U.S. Constitution and consortium with a history of Federal civil rights laws. The Competitive Preference Priorities: For FY 2019, and any subsequent year in effectiveness. Department, through the Full-Service Competitive Preference Priority 4— which we make awards from the list of Community Schools program, provides Evidence-Based Activities, Strategies, or unfunded applications from this catalytic support for the planning, Interventions. (0 or 5 points). competition, these priorities are implementation, operation, and The Secretary gives priority to an competitive preference priorities. Under coordination of effective services for application that is supported by 34 CFR 75.105(c)(2)(i), we award an children and families, particularly those promising evidence (as defined in this additional two points to an application in high-poverty urban and rural areas, at notice). that meets Competitive Preference the local level. Definitions: The definitions for Priority 1, and we award an additional According to a 2017 report, ‘‘Community-based organization,’’ point to an application that meets comprehensive community school ‘‘Eligible entity,’’ ‘‘Full-service Competitive Preference Priority 2. We interventions that incorporate most or community school,’’ ‘‘Local educational award an additional point to an all of four features, or pillars (integrated agency,’’ ‘‘Pipeline services,’’ and ‘‘State application that meets Competitive student supports; expanded learning educational agency’’ are from sections Preference Priority 3, and an additional time and opportunities; family and 4622 and 8101 of the ESEA. The five points to an application that meets community engagement; collaborative definitions for ‘‘Baseline,’’ Competitive Preference Priority 4. An leadership and practice), are associated ‘‘Experimental study,’’ ‘‘Nonprofit,’’ applicant may receive a maximum of with a range of positive student ‘‘Performance measure,’’ ‘‘Performance nine competitive preference priority outcomes. target,’’ ‘‘Project,’’ ‘‘Project component,’’ points. Applicants may apply under ‘‘A well-implemented community ‘‘Promising evidence,’’ ‘‘Quasi- any, all, or none of the competitive school leads to improvement in student experimental design study,’’ ‘‘Relevant and school outcomes and contributes to outcome,’’ and ‘‘What Works 2 Maier, A., Daniel, J., Oakes, J., & Lam, L. (2017). meeting the educational needs of low- Clearinghouse Handbook’’ are from 34 achieving students in high-poverty Community Schools as an Equitable School Improvement Strategy: A Review of the Evidence. CFR 77.1. The definition of ‘‘School schools. Strong research reinforces the Learning Policy Institute, p. v. eligible for a schoolwide program’’ is 3 Sebring, P.B., Allensworth, E., Bryk, A.S., from 34 CFR 200.25(b). 1 Maier, A., Daniel, J., Oakes, J., & Lam, L. (2017). Easton, J.Q., & Luppescu, S. (2006). The Essential Community Schools as an Equitable School Supports for School Improvement. Human Baseline means the starting point Improvement Strategy: A Review of the Evidence. Development (September), The Consortium on from which performance is measured Learning Policy Institute, December 2017. Chicago School Research. and targets are set.

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Community-based organization (b) Provides access to such services in seek to meet during the course of a means a public or private nonprofit (as school to students, families, and the project or as a result of a project. defined in this notice) organization of community, such as access during the Pipeline services means a continuum demonstrated effectiveness that— school year (including before- and after- of coordinated supports, services, and (a) Is representative of a community school hours and weekends), as well as opportunities for children from birth or significant segments of a community; during the summer. through entry into and success in and Local educational agency (LEA) postsecondary education, and career (b) Provides educational or related means: attainment. Such services shall include, services to individuals in the (a) In General. A public board of at a minimum, strategies to address community. education or other public authority through services or programs (including Eligible entity means a consortium of legally constituted within a State for integrated student supports) the one or more LEAs; or the Bureau of either administrative control or following: Indian Education; and one or more direction of, or to perform a service (a) High-quality early childhood community-based organizations, function for, public elementary schools education programs. nonprofit organizations, or other public or secondary schools in a city, county, (b) High-quality school and out-of- or private entities. township, school district, or other school-time programs and strategies. Experimental study means a study political subdivision of a State, or of or (c) Support for a child’s transition to that is designed to compare outcomes for a combination of school districts or elementary school, from elementary between two groups of individuals counties that is recognized in a State as school to middle school, from middle (such as students) that are otherwise an administrative agency for its public school to high school, and from high equivalent except for their assignment elementary schools or secondary school into and through postsecondary to either a treatment group receiving a schools. education and into the workforce, project component or a control group (b) Administrative Control and including any comprehensive readiness that does not. Randomized controlled Direction. The term includes any other assessment determined necessary. trials, regression discontinuity design public institution or agency having (d) Family and community studies, and single-case design studies administrative control and direction of engagement and supports, which may are the specific types of experimental a public elementary school or secondary include engaging or supporting families studies that, depending on their design school. at school or at home. and implementation (e.g., sample (c) Bureau of Indian Education (e) Activities that support attrition in randomized controlled trials Schools. The term includes an postsecondary and workforce readiness, and regression discontinuity design elementary school or secondary school which may include job training, studies), can meet What Works funded by the Bureau of Indian internship opportunities, and career Clearinghouse (WWC) standards Education but only to the extent that counseling. without reservations as described in the including the school makes the school (f) Community-based support for WWC Handbook (as defined in this eligible for programs for which specific students who have attended the schools notice): eligibility is not provided to the school in the area served by the pipeline, or (a) A randomized controlled trial in another provision of law and the students who are members of the employs random assignment of, for school does not have a student community, facilitating their continued example, students, teachers, classrooms, population that is smaller than the connection to the community and or schools to receive the project student population of the LEA receiving success in postsecondary education and component being evaluated (the assistance under the ESEA with the the workforce. treatment group) or not to receive the smallest student population, except that (g) Social, health, nutrition, and project component (the control group). the school shall not be subject to the mental health services and supports. (b) A regression discontinuity design jurisdiction of any State educational (h) Juvenile crime prevention and study assigns the project component agency (as defined in this notice) other rehabilitation programs. being evaluated using a measured than the Bureau of Indian Education. Project means the activity described variable (e.g., assigning students reading (d) Educational Service Agencies. The in an application. below a cutoff score to tutoring or term includes educational service Project component means an activity, developmental education classes) and agencies and consortia of those strategy, intervention, process, product, controls for that variable in the analysis agencies. practice, or policy included in a project. of outcomes. (e) State Educational Agency. The Evidence may pertain to an individual (c) A single-case design study uses term includes the State educational project component or to a combination observations of a single case (e.g., a agency in a State in which the State of project components (e.g., training student eligible for a behavioral educational agency is the sole teachers on instructional practices for intervention) over time in the absence educational agency for all public English learners and follow-on coaching and presence of a controlled treatment schools. for these teachers). manipulation to determine whether the Nonprofit, as applied to an agency, Promising evidence means that there outcome is systematically related to the organization, or institution, means that is evidence of the effectiveness of a key treatment. it is owned and operated by one or more project component in improving a Full-service community school means corporations or associations whose net relevant outcome, based on a relevant a public elementary school or secondary earnings do not benefit, and cannot finding from one of the following: school that-— lawfully benefit, any private (a) A practice guide prepared by (a) Participates in a community-based shareholder or entity. WWC reporting a ‘‘strong evidence effort to coordinate and integrate Performance measure means any base’’ or ‘‘moderate evidence base’’ for educational, developmental, family, quantitative indicator, statistic, or the corresponding practice guide health, and other comprehensive metric used to gauge program or project recommendation; services through community-based performance. (b) An intervention report prepared by organizations and public and private Performance target means a level of the WWC reporting a ‘‘positive effect’’ partnerships; and performance that an applicant would or ‘‘potentially positive effect’’ on a

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relevant outcome with no reporting of a services and that describes the roles the Applicable Regulations: (a) The ‘‘negative effect’’ or ‘‘potentially partner entities will assume. Education Department General negative effect’’ on a relevant outcome; (3) A description of the capacity of the Administrative Regulations in 34 CFR or eligible entity to coordinate and provide parts 75, 77, 79, 81, 82, 84, 86, 97, 98, (c) A single study assessed by the pipeline services at two or more full- and 99. (b) The Office of Management Department, as appropriate, that— service community schools. and Budget Guidelines to Agencies on (i) Is an experimental study, a quasi- (4) A comprehensive plan that Governmentwide Debarment and experimental design study, or a well- includes descriptions of the following: Suspension (Nonprocurement) in 2 CFR designed and well-implemented (a) The student, family, and school part 180, as adopted and amended as correlational study with statistical community to be served, including regulations of the Department in 2 CFR controls for selection bias (e.g., a study demographic information. part 3485. (c) The Uniform using regression methods to account for (b) A needs assessment that identifies Administrative Requirements, Cost differences between a treatment group the academic, physical, nonacademic, Principles, and Audit Requirements for and a comparison group); and health, mental health, and other needs Federal Awards in 2 CFR part 200, as (ii) Includes at least one statistically of students, families, and community adopted and amended as regulations of significant and positive (i.e., favorable) residents. the Department in 2 CFR part 3474. effect on a relevant outcome. (c) Annual measurable performance Quasi-experimental design study objectives and outcomes, including an Note: The regulations in 34 CFR part 79 apply to all applicants except federally means a study using a design that increase in the number and percentage recognized Indian Tribes. attempts to approximate an of families and students targeted for experimental study by identifying a services each year of the program, in Note: The regulations in 34 CFR part 86 comparison group that is similar to the order to ensure that children are— apply to institutions of higher education treatment group in important respects. (i) Prepared for kindergarten; only. This type of study, depending on design (ii) Achieving academically; and and implementation (e.g., establishment (iii) Safe, healthy, and supported by II. Award Information of baseline equivalence of the groups engaged parents. Type of Award: Discretionary grants. being compared), can meet WWC (d) Pipeline services, including Estimated Available Funds: standards with reservations, but cannot existing and additional pipeline $4,142,281. meet WWC standards without services, to be coordinated and provided Contingent upon the availability of reservations, as described in the WWC by the eligible entity and its partner funds and the quality of applications, Handbook. entities, including an explanation of— we may make additional awards in Relevant outcome means the student (i) Why such services have been subsequent years from the list of outcome(s) or other outcome(s) the key selected; unfunded applications from this project component is designed to (ii) How such services will improve competition. improve, consistent with the specific student academic achievement; and Estimated Range of Awards: goals of the program. (iii) How such services will address $275,000–$500,000 for each 12-month School eligible for a schoolwide the annual measurable performance budget period; $1,375,000–$2,500,000 program means any school eligible objectives and outcomes described for the entire project period. under 34 CFR 200.25(b) to operate a under (4)(c) of the application Estimated Average Size of Awards: schoolwide program. requirements. $450,000 for each 12-month period. State educational agency (SEA) means (e) Plans to ensure that each full- Maximum Award: We will not make the agency primarily responsible for the service community school site has a an award exceeding $2,500,000 for the State supervision of public elementary full-time coordinator of pipeline entire project period. schools and secondary schools. services at such school, including a Minimum Award: Under ESEA What Works Clearinghouse Handbook description of the applicable funding section 4625(d), the Secretary is (WWC Handbook) means the standards sources, plans for professional prohibited from making a grant under and procedures set forth in the WWC development for the personnel the Full-Service Community Schools Procedures and Standards Handbook, managing, coordinating, or delivering program in an amount that is less than Version 3.0 or Version 2.1 (incorporated pipeline services, and plans for joint $75,000 for each year of the grant. by reference, see 34 CFR 77.2). Study utilization and management of school Therefore, we will reject any application findings eligible for review under WWC facilities. that proposes an amount that is less standards can meet WWC standards (f) Plans for annual evaluation based than $75,000 for any budget period. without reservations, meet WWC upon attainment of the performance Estimated Number of Awards: 8. standards with reservations, or not meet objectives and outcomes described Note: The Department is not bound by any WWC standards. WWC practice guides under (4)(c) of the application estimates in this notice. and intervention reports include requirements. Project Period: Up to 60 months. findings from systematic reviews of (g) Plans for sustaining the programs evidence as described in the Handbook and services described in the III. Eligibility Information documentation. application after the grant period. 1. Eligible Applicants: A consortium Application Requirements: The (5) An assurance that the eligible of— following requirements are from section entity and its partner entities will focus (a)(i) One or more LEAs; or 4625(a) of the ESEA. In order to receive services on schools eligible for a (ii) The Bureau of Indian Education; funding, an applicant must include the schoolwide program under section and following in its application: 1114(b) of the ESEA. (b) One or more community-based (1) A description of the eligible entity. Applications that do not address the organizations, nonprofit organizations, (2) A memorandum of understanding application requirements are not eligible or other public or private entities. among all partner entities in the eligible for funding and will not be reviewed. A consortium must comply with the entity that will assist the eligible entity Program Authority: Section 4625 of provisions governing group applications to coordinate and provide pipeline the ESEA (20 U.S.C. 7275). in 34 CFR 75.127 through 75.129.

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2.a. Cost Sharing or Matching: To be out under the grant and the annual 4. Funding Restrictions: We reference eligible for an award, a portion of the measurable achievement objectives and regulations outlining funding services provided by the applicant must outcomes set out in section restrictions in the Applicable be supported through non-Federal 4625(a)(4)(C) of the ESEA. Grantees Regulations section of this notice. contributions, either in cash or in-kind must make the results of their annual 5. Recommended Page Limit: The donations. The applicant must propose evaluation publicly available, including application narrative is where you, the the amount of cash or in-kind resources by providing public notice of the applicant, address the selection criteria to be contributed for each year of the availability of such results. that reviewers use to evaluate your application. We recommend that you (1) grant. Note: Nothing in section 4625 of the ESEA The Bureau of Indian Education may shall be construed to alter or otherwise affect limit the application narrative to no meet the matching requirement using the rights, remedies, and procedures afforded more than 150 pages and (2) use the funds from other Federal sources. school or LEA employees under Federal, following standards: b. Supplement not Supplant: This State, or local laws (including applicable • A ‘‘page’’ is 8.5″ x 11″, on one side program is subject to supplement-not- regulations or court orders) under the terms only, with 1″ margins at the top, bottom, supplant funding requirements. of collective bargaining agreements, and both sides. Grantees must use FSCS grant funds to memoranda of understanding, or other • Double space (no more than three supplement, and not supplant, any agreements between such employees and lines per vertical inch) all text in the other Federal, State, and local funds that their employers. application narrative, including titles, would otherwise have been available to headings, footnotes, quotations, carry out activities authorized under IV. Application and Submission references, and captions, as well as all section 4625 of the ESEA. Information text in charts, tables, figures, and 3. Subgrantees: A grantee under this 1. Application Submission graphs. competition may not award subgrants to Instructions: For information on how to • Use a font that is either 12 point or entities to directly carry out project submit an application, please refer to larger or no smaller than 10 pitch activities described in its application. our Common Instructions for Applicants (characters per inch). • 4. Planning: Interagency collaborative to Department of Education Use one of the following fonts: efforts are highly complex undertakings Discretionary Grant Programs, Times New Roman, Courier, Courier that require extensive planning and published in the Federal Register on New, or Arial. communication among partners and key February 13, 2019 (84 FR 3768), and The recommended page limit does not stakeholders. Partnerships should be available at www.govinfo.gov/content/ apply to Part I, the cover sheet; Part II, based on identified needs and organized pkg/FR-2019-02-13/pdf/2019-02206.pdf. the budget section, including the around a set of mutually defined results 2. Submission of Proprietary narrative budget justification; Part IV, and outcomes. Under section 4625(c) of Information: Given the types of projects the assurances and certifications; or the the ESEA, applicants under this that may be proposed in applications for one-page abstract, the resumes, the program may not use more than 10 the FSCS program, your application bibliography, or the letters of support. percent of the total amount of grant may include business information that However, the recommended page limit funds for planning purposes during the you consider proprietary. In 34 CFR does apply to all of the application first year of the grant. Funding received 5.11, we define ‘‘business information’’ narrative. by grantees during the remainder of the 6. Notice of Intent to Apply: The and describe the process we use in project period must be devoted to Department will be able to develop a determining whether any of that program implementation. more efficient process for reviewing information is proprietary and, thus, 5. Use of Funds: Under section grant applications if it has a better protected from disclosure under 4625(e) of the ESEA, grantees must use understanding of the number of entities Exemption 4 of the Freedom of FSCS grant funds to: (1) Coordinate not that intend to apply for funding under Information Act (5 U.S.C. 552, as less than three existing pipeline this competition. Therefore, the amended). services, as of the date their grants are Secretary strongly encourages each awarded, and provide not less than two Because we plan to make successful potential applicant to notify the additional pipeline services, at two or applications available to the public, you Department of the applicant’s intent to more public elementary schools or may wish to request confidentiality of submit an application for funding by secondary schools; (2) to the extent business information. sending a short email message practicable, integrate multiple pipeline Consistent with Executive Order indicating the applicant’s intent to services into a comprehensive and 12600, please designate in your submit an application for funding. The coordinated continuum to achieve the application any information that you email need not include information annual measurable performance believe is exempt from disclosure under regarding the content of the proposed objectives and outcomes under section Exemption 4. In the appropriate application, only the applicant’s intent 4625(a)(4)(C) of the ESEA to meet the Appendix section of your application, to submit it. This email notification holistic needs of children; and (3) if under ‘‘Other Attachments Form,’’ should be sent to [email protected] with applicable, coordinate and integrate please list the page number or numbers ‘‘INTENT TO APPLY’’ in the subject services provided by community-based on which we can find this information. line by March 18, 2019. Applicants that organizations and government agencies For additional information please see 34 do not notify us of their intent to apply with services provided by specialized CFR 5.11(c). may still apply for funding. instructional support personnel. 3. Intergovernmental Review: This 6. Evaluation: Under section 4625(f) program is subject to Executive Order V. Application Review Information of the ESEA, grantees must conduct an 12372 and the regulations in 34 CFR 1. Selection Criteria: The selection annual evaluation of their project’s part 79. Information about criteria for this competition are from 34 progress in meeting the purpose of the Intergovernmental Review of Federal CFR 75.210. The maximum score for all FSCS program set out in section 4621(2) Programs under Executive Order 12372 of the selection criteria is 100 points. of the ESEA and use those evaluations is in the application package for this The maximum score for each criterion is to refine and improve activities carried competition. included in parentheses following the

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title of the specific selection criterion. (d) Quality of the Management Plan this competition the Department Each criterion also includes the factors (up to 20 points). conducts a review of the risks posed by that reviewers will consider in The Secretary considers the quality of applicants. Under 2 CFR 3474.10, the determining the extent to which an the management plan for the proposed Secretary may impose specific applicant meets the criterion. project. In determining the quality of the conditions and, in appropriate Points awarded under these selection management plan for the proposed circumstances, high-risk conditions on a criteria are in addition to any points an project, the Secretary considers the grant if the applicant or grantee is not applicant earns under the competitive following factors— financially stable; has a history of preference priorities in this notice. The (1) The adequacy of the management unsatisfactory performance; has a maximum score that an application may plan to achieve the objectives of the financial or other management system receive under the competitive proposed project on time and within that does not meet the standards in 2 preference priorities and the selection budget, including clearly defined CFR part 200, subpart D; has not criteria is 109 points. responsibilities, timelines, and fulfilled the conditions of a prior grant; The selection criteria are as follows: milestones for accomplishing project or is otherwise not responsible. (a) Quality of the Project Design (up tasks. 4. Integrity and Performance System: to 15 points). (2) The extent to which the time If you are selected under this The Secretary considers the quality of commitments of the project director and competition to receive an award that the design of the proposed project. In principal investigator and other key over the course of the project period determining the quality of the design of project personnel are appropriate and may exceed the simplified acquisition the proposed project, the Secretary adequate to meet the objectives of the threshold (currently $150,000), under 2 considers— proposed project. CFR 200.205(a)(2), we must make a (1) The extent to which the goals, (e) Quality of the Project Evaluation judgment about your integrity, business objectives, and outcomes to be achieved (up to 25 points). ethics, and record of performance under by the proposed project are clearly The Secretary considers the quality of Federal awards—that is, the risk posed specified and measurable. the evaluation to be conducted of the by you as an applicant—before we make (2) The extent to which the design of proposed project. In determining the an award. In doing so, we must consider the proposed project is appropriate to, quality of the evaluation, the Secretary any information about you that is in the and will successfully address, the needs considers the following factors— integrity and performance system (1) The extent to which the methods of the target population or other (currently referred to as the Federal of evaluation are thorough, feasible, and identified needs. Awardee Performance and Integrity (b) Quality of the Project Services (up appropriate to the goals, objectives, and Information System (FAPIIS)), to 25 points). outcomes of the proposed project. accessible through the System for The Secretary considers the quality of (2) The extent to which the methods Award Management. You may review the services to be provided by the of evaluation include the use of and comment on any information about proposed project. In determining the objective performance measures that are yourself that a Federal agency quality of project services, the Secretary clearly related to the intended outcomes previously entered and that is currently considers the quality and sufficiency of of the project and will produce in FAPIIS. strategies for ensuring equal access and quantitative and qualitative data to the treatment for eligible project extent possible. Please note that, if the total value of participants who are members of groups (3) The extent to which the methods your currently active grants, cooperative that have traditionally been of evaluation will provide valid and agreements, and procurement contracts underrepresented based on race, color, reliable performance data on relevant from the Federal Government exceeds national origin, gender, age, or outcomes. $10,000,000, the reporting requirements disability. In addition, the Secretary 2. Review and Selection Process: We in 2 CFR part 200, Appendix XII, considers the following— remind potential applicants that in require you to report certain integrity (1) The likely impact of the services reviewing applications in any information to FAPIIS semiannually. to be provided by the proposed project discretionary grant competition, the Please review the requirements in 2 CFR on the intended recipients of those Secretary may consider, under 34 CFR part 200, Appendix XII, if this grant services. 75.217(d)(3), the past performance of the plus all the other Federal funds you (2) The extent to which the services applicant in carrying out a previous receive exceed $10,000,000. to be provided by the proposed project award, such as the applicant’s use of VI. Award Administration Information involve the collaboration of appropriate funds, achievement of project partners for maximizing the objectives, and compliance with grant 1. Award Notices: If your application effectiveness of project services. conditions. The Secretary may also is successful, we notify your U.S. (c) Adequacy of Resources (up to 15 consider whether the applicant failed to Representative and U.S. Senators and points). submit a timely performance report or send you a Grant Award Notification The Secretary considers the adequacy submitted a report of unacceptable (GAN); or we may send you an email of resources for the proposed project. In quality. containing a link to access an electronic determining the adequacy of resources In addition, in making a competitive version of your GAN. We may notify for the proposed project, the Secretary grant award, the Secretary requires you informally, also. considers the following factors— various assurances, including those If your application is not evaluated or (1) The relevance and demonstrated applicable to Federal civil rights laws not selected for funding, we notify you. commitment of each partner in the that prohibit discrimination in programs 2. Administrative and National Policy proposed project to the implementation or activities receiving Federal financial Requirements: We identify and success of the project. assistance from the Department (34 CFR administrative and national policy (2) The extent to which the costs are 100.4, 104.5, 106.4, 108.8, and 110.23). requirements in the application package reasonable in relation to the number of 3. Risk Assessment and Specific and reference these and other persons to be served and to the Conditions: Consistent with 2 CFR requirements in the Applicable anticipated results and benefits. 200.205, before awarding grants under Regulations section of this notice.

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We reference the regulations outlining services and who receive services DEPARTMENT OF EDUCATION the terms and conditions of an award in during each year of the project period. National Assessment Governing the Applicable Regulations section of 6. Continuation Awards: In making a Board; Meeting this notice and include these and other continuation award under 34 CFR specific conditions in the GAN. The 75.253, the Secretary considers, among AGENCY: National Assessment GAN also incorporates your approved other things: Whether a grantee has Governing Board, Department of application as part of your binding made substantial progress in achieving Education. commitments under the grant. the goals and objectives of the project; 3. Open Licensing Requirements: ACTION: Notice; correction. whether the grantee has expended funds Unless an exception applies, if you are SUMMARY: The National Assessment awarded a grant under this competition, in a manner that is consistent with its approved application and budget; and, Governing Board published a document you will be required to openly license in the Federal Register on February 21, to the public grant deliverables created if the Secretary has established performance measurement 2019, announcing the schedule and in whole, or in part, with Department proposed agenda of a forthcoming grant funds. When the deliverable requirements, the performance targets in the grantee’s approved application. quarterly meeting of the National consists of modifications to pre-existing Assessment Governing Board to be works, the license extends only to those In making a continuation award, the convened on February 28, March 1, and modifications that can be separately Secretary also considers whether the March 2, 2019. The meeting agenda has identified and only to the extent that grantee is operating in compliance with been revised to reflect a change to the open licensing is permitted under the the assurances in its approved meeting schedule for Friday, March 1, terms of any licenses or other legal application, including those applicable 2019 by adding a closed session as restrictions on the use of pre-existing to Federal civil rights laws that prohibit detailed below. works. Additionally, a grantee or discrimination in programs or activities DATES: subgrantee that is awarded competitive Applicable February 27, 2019. receiving Federal financial assistance FOR FURTHER INFORMATION CONTACT: grant funds must have a plan to from the Department (34 CFR 100.4, disseminate these public grant Munira Mwalimu, Executive Officer/ 104.5, 106.4, 108.8, and 110.23). deliverables. This dissemination plan Designated Federal Official for the can be developed and submitted after VII. Other Information Governing Board, 800 North Capitol your application has been reviewed and Street NW, Suite 825, Washington, DC selected for funding. For additional Accessible Format: Individuals with 20002. Phone number: (202) 357–6906. information on the open licensing disabilities can obtain this document Fax: (202) 357–6945. Email: requirements please refer to 2 CFR and a copy of the application package in [email protected]. 3474.20. an accessible format (e.g., braille, large If you use a telecommunications 4. Reporting: (a) If you apply for a print, audiotape, or compact disc) on device for the deaf (TDD) or a text grant under this competition, you must request to the program contact person telephone (TTY), call the Federal Relay ensure that you have in place the listed under FOR FURTHER INFORMATION Service (FRS), toll free, at 1–800–877– necessary processes and systems to CONTACT. 8339. comply with the reporting requirements Electronic Access to This Document: SUPPLEMENTARY INFORMATION: in 2 CFR part 170 should you receive The official version of this document is Correction: funding under the competition. This the document published in the Federal In the Federal Register notice number does not apply if you have an exception Register. You may access the official FR Doc. 84 FR,35, Pages 5426–5427 (2 under 2 CFR 170.110(b). edition of the Federal Register and the pages) Document Number, 2019–02885 (b) At the end of your project period, Code of Federal Regulations at filed on February 20, 2019, the National you must submit a final performance Assessment Governing Board published www.govinfo.gov. At this site you can report, including financial information, a notice of its open and closed meetings view this document, as well as all other as directed by the Secretary. If you scheduled to take place on February 28, documents of this Department receive a multiyear award, you must March 1, and March 2, 2019. The notice submit an annual performance report published in the Federal Register, in is hereby amended to add a closed that provides the most current text or Portable Document Format session on Friday, March 1, 2019 from performance and financial expenditure (PDF). To use PDF you must have 8:00 a.m. to 8:25 a.m. to receive a information as directed by the Secretary Adobe Acrobat Reader, which is briefing from the Governing Board’s under 34 CFR 75.118. The Secretary available free at the site. search committee on applications may also require more frequent You may also access documents of the received for the Governing Board’s performance reports under 34 CFR Department published in the Federal Executive Director vacancy, and to 75.720(c). For specific requirements on Register by using the article search discuss a recommendation from the reporting, please go to www.ed.gov/ feature at www.federalregister.gov. Executive Committee to appoint the fund/grant/apply/appforms/ Specifically, through the advanced Executive Director. The Governing appforms.html. search feature at this site, you can limit Board’s discussions pertain solely to (c) Under 34 CFR 75.250(b), the your search to documents published by internal personnel rules and practices of Secretary may provide a grantee with the Department. an agency and information of a personal additional funding for data collection nature where disclosure would analysis and reporting. In this case the Dated: February 22, 2019. constitute a clearly unwarranted Secretary establishes a data collection Frank Brogan, invasion of personal privacy. As such, period. Assistant Secretary for Elementary and the discussions are protected by 5. Performance Measures: We have Secondary Education. exemptions 2 and 6 of § 552b(c) of Title established one performance measure [FR Doc. 2019–03427 Filed 2–26–19; 8:45 am] 5 of the United States Code. for the FSCS program: The percentage BILLING CODE 4000–01–P Following the closed session, the full and number of individuals targeted for Board meeting will meet from 8:25 a.m.

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to 8:30 a.m. to take a vote on the DEPARTMENT OF ENERGY Procedural Matters: Any person recommendation for appointment of the desiring to be heard in this proceeding [OE Docket No. EA–466] Executive Director. The remainder of should file a comment or protest to the the meeting agenda as published in the Application To Export Electric Energy; application at the address provided original notice is unchanged. Dynasty Power, Inc. above. Protests should be filed in accordance with Rule 211 of the Federal Access to Records of the Meeting: AGENCY: Office of Electricity, Energy Regulatory Commission’s (FERC) Pursuant to FACA requirements, the Department of Energy (DOE). Rules of Practice and Procedure (18 CFR public may also inspect the meeting ACTION: Notice of application. 385.211). Any person desiring to materials at www.nagb.gov beginning on become a party to this proceeding Thursday, February 28, 2019 by 10:00 SUMMARY: Dynasty Power, Inc. should file a motion to intervene at the a.m. Washington, DC Time. The official (Applicant or Dynasty Power) has above address in accordance with FERC verbatim transcripts of the public applied for authorization to transmit Rule 214 (18 CFR 385.214). Five (5) meeting sessions will be available for electric energy from the United States to copies of such comments, protests, or public inspection no later than 30 Mexico pursuant to the Federal Power motions to intervene should be sent to calendar days following the meeting. Act. the address provided above on or before Reasonable Accommodations: The DATES: Comments, protests, or motions the date listed above. Comments and other filings meeting site is accessible to individuals to intervene must be submitted on or concerning Dynasty Power’s application with disabilities. If you will need an before March 29, 2019. to export electric energy to Mexico auxiliary aid or service to participate in ADDRESSES: Comments, protests, should be clearly marked with OE the meeting (e.g., interpreting service, motions to intervene, or requests for more information should be addressed Docket No. EA–466. An additional copy assistive listening device, or materials in is to be provided directly to both Todd an alternate format), notify the contact to: Office of Electricity, Mail Code: OE– 20, U.S. Department of Energy, 1000 McRae, Dynasty Power Inc., 200, 638 person listed in this notice at least two 6th Ave. SW, Calgary, AB T2P 0S4, weeks before the scheduled meeting Independence Avenue SW, Washington, DC 20585–0350. Because of delays in Canada, and Bonnie A. Suchman, Esq., date. Although we will attempt to meet Suchman Law LLC, 8104 Paisley Place, a request received after that date, we handling conventional mail, it is recommended that documents be Potomac, Maryland 20854. may not be able to make available the A final decision will be made on this transmitted by overnight mail, by requested auxiliary aid or service application after the environmental electronic mail to Electricity.Exports@ because of insufficient time to arrange impacts have been evaluated pursuant hq.doe.gov, or by facsimile to 202–586– to DOE’s National Environmental Policy it. 8008. Act Implementing Procedures (10 CFR Electronic Access to This Document: SUPPLEMENTARY INFORMATION: The The official version of this document is part 1021) and after DOE determines Department of Energy (DOE) regulates that the proposed action will not have the document published in the Federal exports of electricity from the United an adverse impact on the sufficiency of Register. You may access the official States to a foreign country, pursuant to supply or reliability of the U.S. electric edition of the Federal Register and the sections 301(b) and 402(f) of the power supply system. Code of Federal Regulations at Department of Energy Organization Act Copies of this application will be www.govinfo.gov. At this site you can (42 U.S.C. 7151(b) and 7172(f)). Such made available, upon request, for public view this document, as well as all other exports require authorization under inspection and copying at the address documents of this Department section 202(e) of the Federal Power Act provided above, by accessing the published in the Federal Register, in (16 U.S.C. 824a(e)). program website at http://energy.gov/ text or PDF. To use PDF you must have On February 15, 2019, DOE received node/11845, or by emailing Angela Troy Adobe Acrobat Reader, which is an application from Dynasty Power for at [email protected]. available free at the site. authorization to transmit electric energy from the United States to Mexico as a Signed in Washington, DC, on February 19, 2019. You may also access documents of the power marketer for a five-year term Department published in the Federal using existing international Christopher Lawrence, Register by using the article search transmission facilities. Management and Program Analyst, feature at: www.federalregister.gov. In its application, the Applicant states Transmission Permitting and Technical Assistance, Office of Electricity. Specifically, through the advanced that it ‘‘does not own or control any search feature at this site, you can limit electric power generation or [FR Doc. 2019–03361 Filed 2–26–19; 8:45 am] your search to documents published by transmission facilities and does not BILLING CODE 6450–01–P the Department. have a franchised electric power service area.’’ The electric energy that the Authority: Pub. L. 107–279, Title III— DEPARTMENT OF ENERGY National Assessment of Educational Progress Applicant proposes to export to Mexico § 301. would be surplus energy purchased [OE Docket No. EA–385–A] from third parties such as electric Dated: February 22, 2019. utilities and Federal power marketing Application To Export Electric Energy; Lisa Stooksberry, agencies pursuant to voluntary Dynasty Power, Inc. Deputy Executive Director, National agreements. The existing international AGENCY: Office of Electricity, Assessment Governing Board (NAGB), U.S. transmission facilities to be utilized by Department of Energy (DOE). Department of Education. the Applicant have previously been ACTION: Notice of application. [FR Doc. 2019–03386 Filed 2–26–19; 8:45 am] authorized by Presidential permits BILLING CODE 4000–01–P issued pursuant to Executive Order SUMMARY: Dynasty Power, Inc. 10485, as amended, and are appropriate (Applicant or Dynasty Power) has for open access transmission by third applied to renew its authorization to parties. transmit electric energy from the United

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States to Canada pursuant to the Federal 385.211). Any person desiring to DATES: Comments, protests, or motions Power Act. become a party to this proceeding to intervene must be submitted on or DATES: Comments, protests, or motions should file a motion to intervene at the before March 29, 2019. to intervene must be submitted on or above address in accordance with FERC ADDRESSES: Comments, protests, before March 29, 2019. Rule 214 (18 CFR 385.214). Five (5) motions to intervene, or requests for ADDRESSES: Comments, protests, copies of such comments, protests, or more information should be addressed motions to intervene, or requests for motions to intervene should be sent to to: Office of Electricity, Mail Code: OE– more information should be addressed the address provided above on or before 20, U.S. Department of Energy, 1000 to: Office of Electricity, Mail Code: OE– the date listed above. Independence Avenue SW, Washington, 20, U.S. Department of Energy, 1000 Comments and other filings DC 20585–0350. Because of delays in Independence Avenue SW, Washington, concerning Dynasty Power’s application handling conventional mail, it is DC 20585–0350. Because of delays in to export electric energy to Canada recommended that documents be handling conventional mail, it is should be clearly marked with OE transmitted by overnight mail, by recommended that documents be Docket No. EA–385–A. An additional electronic mail to Electricity.Exports@ transmitted by overnight mail, by copy is to be provided directly to both hq.doe.gov, or by facsimile to 202–586– electronic mail to Electricity.Exports@ Todd McRae, Dynasty Power Inc., 200, 8008. hq.doe.gov, or by facsimile to 202–586– 638 6th Ave. SW, Calgary, AB T2P 0S4, SUPPLEMENTARY INFORMATION: The 8008. Canada, and Bonnie A. Suchman, Esq., Department of Energy (DOE) regulates SUPPLEMENTARY INFORMATION: The Suchman Law LLC, 8104 Paisley Place, exports of electricity from the United Department of Energy (DOE) regulates Potomac, Maryland 20854. States to a foreign country, pursuant to exports of electricity from the United A final decision will be made on this sections 301(b) and 402(f) of the States to a foreign country, pursuant to application after the environmental Department of Energy Organization Act sections 301(b) and 402(f) of the impacts have been evaluated pursuant (42 U.S.C. 7151(b) and 7172(f)). Such Department of Energy Organization Act to DOE’s National Environmental Policy exports require authorization under (42 U.S.C. 7151(b) and 7172(f)). Such Act Implementing Procedures (10 CFR section 202(e) of the Federal Power Act exports require authorization under part 1021) and after DOE determines (16 U.S.C. 824a(e)). section 202(e) of the Federal Power Act that the proposed action will not have On February 11, 2014, DOE issued (16 U.S.C. 824a(e)). an adverse impact on the sufficiency of Order No. EA–348–B, which authorized On December 7, 2012, DOE issued supply or reliability of the U.S. electric the entity then known as NextEra Order No. EA–385, which authorized power supply system. Energy Power Marketing, LLC and now the Applicant to transmit electric energy Copies of this application will be known as NextEra Energy Marketing, from the United States to Canada as a made available, upon request, for public LLC to transmit electric energy from the power marketer for a five-year term inspection and copying at the address United States to Canada as a power using existing international provided above, by accessing the marketer for a five-year term using transmission facilities. That program website at http://energy.gov/ existing international transmission authorization expired on September 26, node/11845, or by emailing Angela Troy facilities. That authorization expired on 2017. On February 15, 2019, Dynasty at [email protected]. February 11, 2019. On February 8, 2019, Power filed an application with DOE for NEM filed an application with DOE for renewal of the export authorization Signed in Washington, DC, on February 19, renewal of the export authorization contained in Order No. EA–385 for an 2019. contained in Order No. EA–348–B for an additional five-year term. Christopher Lawrence, additional five-year term. In its application, the Applicant states Management and Program Analyst, In its application, the Applicant states that it ‘‘does not own or control any Transmission Permitting and Technical that it ‘‘does not own any transmission electric power generation or Assistance, Office of Electricity. facilities.’’ The electric energy that the transmission facilities and does not [FR Doc. 2019–03362 Filed 2–26–19; 8:45 am] Applicant proposes to export to Canada have a franchised electric power service BILLING CODE 6450–01–P would be surplus energy purchased area.’’ The electric energy that the from third parties such as electric Applicant proposes to export to Canada utilities and Federal power marketing would be surplus energy purchased DEPARTMENT OF ENERGY agencies pursuant to voluntary from third parties such as electric agreements. The existing international utilities and Federal power marketing [OE Docket No. EA–348–C] transmission facilities to be utilized by agencies pursuant to voluntary the Applicant have previously been agreements. The existing international Application To Export Electric Energy; authorized by Presidential permits transmission facilities to be utilized by NextEra Energy Marketing, LLC issued pursuant to Executive Order the Applicant have previously been 10485, as amended, and are appropriate AGENCY: authorized by Presidential permits Office of Electricity, for open access transmission by third issued pursuant to Executive Order Department of Energy (DOE). parties. 10485, as amended, and are appropriate ACTION: Notice of application. Procedural Matters: Any person for open access transmission by third desiring to be heard in this proceeding parties. SUMMARY: NextEra Energy Marketing, should file a comment or protest to the Procedural Matters: Any person LLC, formerly known as FPL Energy application at the address provided desiring to be heard in this proceeding Power Marketing, Inc. and NextEra above. Protests should be filed in should file a comment or protest to the Energy Power Marketing, LLC accordance with Rule 211 of the Federal application at the address provided (Applicant or NEM) has applied to Energy Regulatory Commission’s (FERC) above. Protests should be filed in renew its authorization to transmit Rules of Practice and Procedure (18 CFR accordance with Rule 211 of the Federal electric energy from the United States to 385.211). Any person desiring to Energy Regulatory Commission’s (FERC) Canada pursuant to the Federal Power become a party to this proceeding Rules of Practice and Procedure (18 CFR Act. should file a motion to intervene at the

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above address in accordance with FERC Filed Date: 2/12/19. Description: § 4(d) Rate Filing: Neg Rule 214 (18 CFR 385.214). Five (5) Accession Number: 20190215–5109. Rate 2019–02–15 BHS (4) to be effective copies of such comments, protests, or Comments Due: 5 p.m. ET 3/8/19. 2/16/2019. motions to intervene should be sent to 284.123(g) Protests Due: 5 p.m. ET 4/ Filed Date: 2/15/19. the address provided above on or before 16/19. Accession Number: 20190215–5117. the date listed above. Docket Number: PR19–40–000. Comments Due: 5 p.m. ET 2/27/19. Comments and other filings Applicants: Cranberry Pipeline Docket Numbers: RP19–664–000. concerning NEM’s application to export Corporation. Applicants: Gulf South Pipeline electric energy to Canada should be Description: Tariff filing per Company, LP. clearly marked with OE Docket No. EA– 284.123(b)(2)+(g): Application for Rate Description: § 4(d) Rate Filing: 2018 348–C. An additional copy is to be Approval to be effective 2/19/2019. Fuel Tracker Filing—Petal to be provided directly to Gunnar Birgisson, Filed Date: 2/19/19. effective 4/1/2019. NextEra Energy Marketing, LLC, 801 Accession Number: 201902195172. Filed Date: 2/15/19. Pennsylvania Ave. NW, Suite 220, Comments Due: 5 p.m. ET 3/12/19. Accession Number: 20190215–5119. Washington, DC 20004. 284.123(g) Protests Due: 5 p.m. ET 4/ Comments Due: 5 p.m. ET 2/27/19. A final decision will be made on this 22/19. Docket Numbers: RP19–665–000. application after the environmental Docket Numbers: RP19–658–000. Applicants: Encana Marketing (USA) impacts have been evaluated pursuant Applicants: Iroquois Gas Inc., Newfield Exploration Mid- to DOE’s National Environmental Policy Transmission System, L.P. Continent, Inc. Act Implementing Procedures (10 CFR Description: § 4(d) Rate Filing: 021419 Description: Joint Petition for part 1021) and after DOE determines Negotiated Rates—Mercuria Energy Temporary Waivers of Capacity Release that the proposed action will not have America, Inc. R–7540–02 to be effective Regulations and Policies, et al. of an adverse impact on the sufficiency of 3/1/2019. Encana Marketing (USA) Inc., et al. supply or reliability of the U.S. electric Filed Date: 2/14/19. under RP19–665. power supply system. Accession Number: 20190214–5016. Filed Date: 2/15/19. Copies of this application will be Comments Due: 5 p.m. ET 2/26/19. Accession Number: 20190215–5178. Comments Due: 5 p.m. ET 2/25/19. made available, upon request, for public Docket Numbers: RP19–659–000. inspection and copying at the address Applicants: Black Marlin Pipeline Docket Numbers: RP19–620–001. provided above, by accessing the LLC. Applicants: Texas Gas Transmission, program website at http://energy.gov/ Description: Compliance filing LLC. node/11845, or by emailing Angela Troy Petition for Temporary Exemption from Description: Tariff Amendment: at [email protected]. Tariff Revision Filing—Order 587–Y. Amendment to Filing in Docket No. Signed in Washington, DC, on February 19, Filed Date: 2/14/19. RP19–620–000 to be effective 2/1/2019. 2019. Accession Number: 20190214–5034. Filed Date: 2/19/19. Accession Number: 20190219–5124. Christopher Lawrence, Comments Due: 5 p.m. ET 2/26/19. Comments Due: 5 p.m. ET 3/4/19. Management and Program Analyst, Docket Numbers: RP19–660–000. Docket Numbers: RP19–666–000. Transmission Permitting and Technical Applicants: Gas Transmission Applicants: National Fuel Gas Supply Assistance, Office of Electricity. Northwest LLC. Corporation. [FR Doc. 2019–03365 Filed 2–26–19; 8:45 am] Description: § 4(d) Rate Filing: Description: § 4(d) Rate Filing: GT&C BILLING CODE 6450–01–P Forward Haul Definitional Change to be 10.6 and Housekeeping Changes to be effective 3/18/2019. effective 3/21/2019. Filed Date: 2/14/19. DEPARTMENT OF ENERGY Filed Date: 2/19/19. Accession Number: 20190214–5122. Accession Number: 20190219–5014. Comments Due: 5 p.m. ET 2/26/19. Federal Energy Regulatory Comments Due: 5 p.m. ET 3/4/19. Commission Docket Numbers: RP19–661–000. Docket Numbers: RP19–667–000. Applicants: Northern Natural Gas Applicants: Algonquin Gas Combined Notice of Filings Company. Transmission, LLC. Description: Northern Natural Gas Take notice that the Commission has Description: § 4(d) Rate Filing: submits report of the penalty and daily Negotiated Rate—Norwich release to received the following Natural Gas delivery variance charge (DDVC) Pipeline Rate and Refund Report filings: Direct Energy 798673 eff 3/1/19 to be revenues that have been credited to effective 3/1/2019. Filings Instituting Proceedings shippers. Filed Date: 2/19/19. Filed Date: 2/13/19. Docket Number: PR19–38–000. Accession Number: 20190219–5052. Accession Number: 20190213–5185. Comments Due: 5 p.m. ET 3/4/19. Applicants: Interstate Power and Comments Due: 5 p.m. ET 2/25/19. Light Company. Docket Numbers: RP19–668–000. Description: Tariff filing per Docket Numbers: RP19–662–000. Applicants: WestGas InterState, Inc. 284.123(b),(e)/: SOC 2019 to be effective Applicants: Pine Prairie Energy Description: § 4(d) Rate Filing: 2/14/2019. Center, LLC. 20190219_CoverLetter to be effective 2/ Filed Date: 2/14/19. Description: § 4(d) Rate Filing: Pine 20/2019. Accession Number: 201902145031. Prairie Energy Center, LLC—Revisions Filed Date: 2/19/19. Comments/Protests Due: 5 p.m. ET 3/ to FERC Gas Tariff to be effective 3/18/ Accession Number: 20190219–5092. 7/19. 2019. Comments Due: 5 p.m. ET 3/4/19. Docket Number: PR19–39–000. Filed Date: 2/15/19. Docket Numbers: RP19–669–000. Applicants: Public Service Company Accession Number: 20190215–5039. Applicants: National Fuel Gas Supply of Colorado. Comments Due: 5 p.m. ET 2/27/19. Corporation. Description: Tariff filing per Docket Numbers: RP19–663–000. Description: § 4(d) Rate Filing: Fuel 284.123(b),(e)+(g): 2.15.19 SOR Update Applicants: Rockies Express Pipeline Tracker under GT&C 41 (Supply) to be to be effective 1/1/2019. LLC. effective 4/1/2019.

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Filed Date: 2/19/19. and Procedure (18 CFR 385.211 and 2019, as the end of the formal period to Accession Number: 20190219–5103. 385.214). Anyone filing a motion to file comments, motions to intervene, or Comments Due: 5 p.m. ET 3/4/19. intervene or protest must serve a copy protests on the application for surrender Docket Numbers: RP19–670–000. of that document on the Applicant. of license for Georgia Power Company’s Applicants: Empire Pipeline, Inc. Notice is hereby given that the Riverview Hydroelectric Project No. Description: § 4(d) Rate Filing: Fuel deadline for filing protests with regard 2350, located on the Chattahoochee Tracker under GT&C 23.6 (Empire) to be to the applicant’s request for blanket River in Chambers County, Alabama effective 4/1/2019. authorization, under 18 CFR part 34, of and Harris County, Georgia. Due to the Filed Date: 2/19/19. future issuances of securities and funding lapse at certain federal agencies Accession Number: 20190219–5108. assumptions of liability, is March 13, between December 22, 2018 and January 2019. Comments Due: 5 p.m. ET 3/4/19. 25, 2019, the Commission is extending The filings are accessible in the The Commission encourages electronic submission of protests and the comment period until March 4, Commission’s eLibrary system by 2019. clicking on the links or querying the interventions in lieu of paper, using the docket number. FERC Online links at http:// Dated: February 14, 2019. Any person desiring to intervene or www.ferc.gov. To facilitate electronic Kimberly D. Bose, protest in any of the above proceedings service, persons with internet access Secretary. who will eFile a document and/or be must file in accordance with Rules 211 [FR Doc. 2019–03330 Filed 2–26–19; 8:45 am] listed as a contact for an intervenor and 214 of the Commission’s BILLING CODE 6717–01–P Regulations (18 CFR 385.211 and must create and validate an 385.214) on or before 5:00 p.m. Eastern eRegistration account using the eRegistration link. Select the eFiling time on the specified date(s). Protests DEPARTMENT OF ENERGY may be considered, but intervention is link to log on and submit the necessary to become a party to the intervention or protests. Federal Energy Regulatory Persons unable to file electronically proceeding. Commission eFiling is encouraged. More detailed should submit an original and 5 copies information relating to filing of the intervention or protest to the [Docket No. EL19–41–000] requirements, interventions, protests, Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC service, and qualifying facilities filings Cheyenne Light, Fuel and Power can be found at: http://www.ferc.gov/ 20426. The filings in the above-referenced Company; Notice of Institution of docs-filing/efiling/filing-req.pdf. For Section 206 Proceeding and Refund other information, call (866) 208–3676 proceeding are accessible in the Effective Date (toll free). For TTY, call (202) 502–8659. Commission’s eLibrary system by clicking on the appropriate link in the Dated: February 21, 2019. above list. They are also available for On February 21, 2019, the Nathaniel J. Davis, Sr., electronic review in the Commission’s Commission issued an order in Docket Deputy Secretary. Public Reference Room in Washington, No. EL19–41–000, pursuant to section [FR Doc. 2019–03398 Filed 2–26–19; 8:45 am] DC. There is an eSubscription link on 206 of the Federal Power Act (FPA), 16 BILLING CODE 6717–01–P the website that enables subscribers to U.S.C. 824e (2012), instituting an receive email notification when a investigation into whether the annual document is added to a subscribed transmission revenue requirement DEPARTMENT OF ENERGY docket(s). For assistance with any FERC reduction proposed by Cheyenne Light, Online service, please email Fuel and Power Company may be unjust Federal Energy Regulatory [email protected]. or call and unreasonable. Cheyenne Light, Fuel Commission (866) 208–3676 (toll free). For TTY, call and Power Co., 166 FERC 61,121 (2019). (202) 502–8659. [Docket No. ER19–1069–000] The refund effective date in Docket Dated: February 21, 2019. Supplemental Notice That Initial No. EL19–41–000, established pursuant Nathaniel J. Davis, Sr., Market-Based Rate Filing Includes to section 206(b) of the FPA, will be the Deputy Secretary. Request for Blanket Section 204 date of publication of this notice in the Authorization; Northland Power [FR Doc. 2019–03400 Filed 2–26–19; 8:45 am] Federal Register. Energy Marketing (US) Inc. BILLING CODE 6717–01–P Any interested person desiring to be heard in Docket No. EL19–41–000 must This is a supplemental notice in the above-referenced proceeding of DEPARTMENT OF ENERGY file a notice of intervention or motion to Northland Power Energy Marketing (US) intervene, as appropriate, with the Inc.’s application for market-based rate Federal Energy Regulatory Federal Energy Regulatory Commission, authority, with an accompanying rate Commission 888 First Street NE, Washington, DC tariff, noting that such application [Project No. 2350–025] 20426, in accordance with Rule 214 of includes a request for blanket the Commission’s Rules of Practice and authorization, under 18 CFR part 34, of Georgia Power Company; Notice of Procedure, 18 CFR 385.214 (2018), future issuances of securities and Comment Period Extension within 21 days of the date of issuance of the order. assumptions of liability. On January 24, 2019, the Commission Any person desiring to intervene or to issued a notice through the FERC Dated: February 21, 2019. protest should file with the Federal eLibrary system 1 setting February 25, Nathaniel J. Davis, Sr., Energy Regulatory Commission, 888 Deputy Secretary. First Street NE, Washington, DC 20426, 1 Go to https://elibrary.ferc.gov/idmws/search/ [FR Doc. 2019–03403 Filed 2–26–19; 8:45 am] in accordance with Rules 211 and 214 intermediate.asp?link_file=yes&doclist=14738701 of the Commission’s Rules of Practice and select the file link to view the document. BILLING CODE 6717–01–P

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DEPARTMENT OF ENERGY 2019, the Commission is extending the West Virginia Transmission Company, comment period until March 4, 2019. LLC, PATH Allegheny Transmission Federal Energy Regulatory Dated: February 14, 2019. Company, LLC. Commission Kimberly D. Bose, Description: Compliance filing of Potomac-Appalachian Transmission Secretary. [Project No. 2101–159] Highline, LLC, et al. [FR Doc. 2019–03328 Filed 2–26–19; 8:45 am] Filed Date: 2/19/19. Sacramento Municipal Utility District’s BILLING CODE 6717–01–P Accession Number: 20190219–5245. Proposed Whitewater Recreation Comments Due: 5 p.m. ET 3/21/19. Management Plan for the Upper American River Hydroelectric Project DEPARTMENT OF ENERGY Docket Numbers: ER17–1743–003. No. 2101; Comment Period Extension Applicants: Doswell Limited Federal Energy Regulatory Partnership. On January 22, 2019, the Commission Commission Description: Compliance filing: issued a notice through the FERC Reactive Service Rate Schedule eLibrary system 1 setting February 21, Combined Notice of Filings #1 Compliance Filing to be effective 7/1/2017. 2019, as the end of the formal period to Take notice that the Commission Filed Date: 2/21/19. file comments, motions to intervene, received the following electric corporate Accession Number: 20190221–5184. and protests on P–2101–159: filings: Sacramento Municipal Utility District’s Docket Numbers: EC16–77–001. Comments Due: 5 p.m. ET 3/14/19. proposed whitewater recreation Applicants: BlackRock, Inc. Docket Numbers: ER19–952–001. management plan for the Upper Description: Request for Applicants: Alabama Power American River Hydroelectric Project Reauthorization and Extension of Company. No. 2101, located on the Rubicon River, Blanket Authorizations Under Section Description: Tariff Amendment: Silver Creek, and South Fork American 203 of the Federal Power Act, et al. of Raven Solar Amendment to Amendment River in El Dorado and Sacramento BlackRock, Inc. Filing to be effective 1/1/2019. counties, California. Due to the funding Filed Date: 2/19/19. Filed Date: 2/21/19. lapse at certain federal agencies between Accession Number: 20190219–5254. Accession Number: 20190221–5002. December 22, 2018, and January 25, Comments Due: 5 p.m. ET 3/12/19. Comments Due: 5 p.m. ET 3/14/19. 2019, the Commission is extending the Take notice that the Commission Docket Numbers: ER19–987–000. comment period until February 28, received the following exempt Applicants: Crystal Lake Wind Energy 2019. wholesale generator filings: I, LLC. Dated: February 15, 2019. Docket Numbers: EG19–59–000. Description: Supplement to February Nathaniel J. Davis, Sr., Applicants: Broadlands Wind Farm 5, 2019 Crystal Lake Wind Energy I, LLC Deputy Secretary. LLC. tariff filing. Description: Notice of Self- Filed Date: 2/15/19. [FR Doc. 2019–03147 Filed 2–26–19; 8:45 am] Certification of Exempt Wholesale BILLING CODE 6717–01–P Accession Number: 20190215–5182. Generator Status of Broadlands Wind Comments Due: 5 p.m. ET 3/8/19. Farm LLC. Docket Numbers: ER19–1080–000. Filed Date: 2/21/19. DEPARTMENT OF ENERGY Applicants: California Independent Accession Number: 20190221–5138. Comments Due: 5 p.m. ET 3/14/19. System Operator Corporation. Federal Energy Regulatory Description: § 205(d) Rate Filing: Commission Docket Numbers: EG19–60–000. 2019–02–20 EIM Implementation Applicants: Hidalgo Wind Farm II Agreement with NorthWestern to be LLC. [Project No. 2341–033] effective 4/22/2019. Description: Notice of Self- Filed Date: 2/21/19. Certification of Exempt Wholesale Georgia Power Company; Notice of Accession Number: 20190221–5003. Generator Status of Hidalgo Wind Farm Comment Period Extension Comments Due: 5 p.m. ET 3/14/19. II LLC. On January 24, 2019, the Commission Filed Date: 2/21/19. Docket Numbers: ER19–1081–000. issued a notice through the FERC Accession Number: 20190221–5139. Applicants: Southern California eLibrary system 1 setting February 25, Comments Due: 5 p.m. ET 3/14/19. Edison Company. 2019, as the end of the formal period to Docket Numbers: EG19–61–000. Description: § 205(d) Rate Filing: UFA file comments, motions to intervene, or Applicants: Lexington Chenoa Wind Sunshine Valley Solar, SCE CAISO, SA protests on the application for surrender Farm LLC. No. 230 & Cancel Letter Agmt SA No. of license for Georgia Power Company’s Description: Notice of Self- 191 to be effective 2/21/2019. Langdale Hydroelectric Project No. Certification of Exempt Wholesale Filed Date: 2/21/19. 2341, located on the Chattahoochee Generator Status of Lexington Chenoa Accession Number: 20190221–5004. River in the City of Valley, Chambers Wind Farm LLC. Comments Due: 5 p.m. ET 3/14/19. County, Alabama and Harris County, Filed Date: 2/21/19. Docket Numbers: ER19–1082–000. Georgia. Due to the funding lapse at Accession Number: 20190221–5140. Applicants: NorthWestern certain federal agencies between Comments Due: 5 p.m. ET 3/14/19. Corporation. December 22, 2018 and January 25, Take notice that the Commission Description: § 205(d) Rate Filing: SA received the following electric rate 299 7th Rev—NITSA with REC 1 Go to https://elibrary.ferc.gov/idmws/search/ filings: Advanced Silicon Materials, LLC to be _ intermediate.asp?link file=yes&doclist=14737973 Docket Numbers: ER09–1256–005; effective 4/1/2019. and select the file link to view the document. 1 Go to https://elibrary.ferc.gov/idmws/search/ ER12–2708–007. Filed Date: 2/21/19. intermediate.asp?link_file=yes&doclist=14738696 Applicants: Potomac-Appalachian Accession Number: 20190221–5005. and select the file link to view the document. Transmission Highline, LLC, PATH Comments Due: 5 p.m. ET 3/14/19.

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Docket Numbers: ER19–1083–000. Docket Numbers: ER19–1090–000. must file in accordance with Rules 211 Applicants: CPV Shore, LLC. Applicants: Midcontinent and 214 of the Commission’s Description: Request for Waiver of Independent System Operator, Inc. Regulations (18 CFR 385.211 and CPV Shore, LLC. Description: § 205(d) Rate Filing: 385.214) on or before 5:00 p.m. Eastern Filed Date: 2/21/19. 2019–02–21_SA 3251 NSP-Louise Solar time on the specified comment date. Accession Number: 20190221–5119. Project FCA (J523) to be effective 2/8/ Protests may be considered, but Comments Due: 5 p.m. ET 3/14/19. 2019. intervention is necessary to become a Docket Numbers: ER19–1084–000. Filed Date: 2/21/19. party to the proceeding. Applicants: Midcontinent Accession Number: 20190221–5230. eFiling is encouraged. More detailed Independent System Operator, Inc. Comments Due: 5 p.m. ET 3/14/19. information relating to filing Description: § 205(d) Rate Filing: Docket Numbers: ER19–1091–000. requirements, interventions, protests, 2019–02–21_SA 3248 OTP NSP Applicants: NextEra Energy service, and qualifying facilities filings Brooking Substation Relay MPFCA (J493 Transmission MidAtlantic, LLC. can be found at: http://www.ferc.gov/ J510) to be effective 2/7/2019. Description: § 205(d) Rate Filing: docs-filing/efiling/filing-req.pdf. For Filed Date: 2/21/19. Notice of Succession to be effective other information, call (866) 208–3676 Accession Number: 20190221–5146. 1/22/2019. (toll free). For TTY, call (202) 502–8659. Comments Due: 5 p.m. ET 3/14/19. Filed Date: 2/21/19. Dated: February 21, 2019. Docket Numbers: ER19–1085–000. Accession Number: 20190221–5238. Nathaniel J. Davis, Sr., Applicants: Midcontinent Comments Due: 5 p.m. ET 3/14/19. Deputy Secretary. Independent System Operator, Inc. Docket Numbers: ER19–1092–000. [FR Doc. 2019–03401 Filed 2–26–19; 8:45 am] Applicants: Antelope DSR 3, LLC. Description: § 205(d) Rate Filing: BILLING CODE 6717–01–P 2019–02–21_SA 3227 Certificate of Description: Baseline eTariff Filing: Concurrence Duke—AEP IMTC IA to be Master Interconnection Services effective 12/12/2018. Agreement to be effective 2/22/2019. DEPARTMENT OF ENERGY Filed Date: 2/21/19. Filed Date: 2/21/19. Accession Number: 20190221–5149. Accession Number: 20190221–5244. Federal Energy Regulatory Comments Due: 5 p.m. ET 3/14/19. Comments Due: 5 p.m. ET 3/14/19. Commission Docket Numbers: ER19–1086–000. Docket Numbers: ER19–1093–000. [Docket No. RM98–1–000] Applicants: Entergy Mississippi, LLC, Applicants: San Pablo Raceway, LLC. Entergy Louisiana, LLC. Description: Baseline eTariff Filing: Records Governing Off-the-Record Description: § 205(d) Rate Filing: Master Interconnection Services Communications; Public Notice ELL–EML-Southern Transmission Agreement to be effective 2/22/2019. Interconnection Agreement to be Filed Date: 2/21/19. This constitutes notice, in accordance effective 1/1/2019. Accession Number: 20190221–5250. with 18 CFR 385.2201(b), of the receipt Filed Date: 2/21/19. Comments Due: 5 p.m. ET 3/14/19. of prohibited and exempt off-the-record Accession Number: 20190221–5169. Docket Numbers: ER19–1094–000. communications. Comments Due: 5 p.m. ET 3/14/19. Applicants: Alabama Power Order No. 607 (64 FR 51222, Company. September 22, 1999) requires Docket Numbers: ER19–1087–000. Commission decisional employees, who Applicants: PJM Interconnection, Description: § 205(d) Rate Filing: Entergy Interconnection Agreement make or receive a prohibited or exempt L.L.C. off-the-record communication relevant Description: Tariff Cancellation: Filing to be effective 1/1/2019. Filed Date: 2/21/19. to the merits of a contested proceeding, Notice of Cancellation of ISA/SA No. to deliver to the Secretary of the 4408, Queue No. Z1–038 to be effective Accession Number: 20190221–5253. Comments Due: 5 p.m. ET 3/14/19. Commission, a copy of the 1/21/2019. communication, if written, or a Filed Date: 2/21/19. Docket Numbers: ER19–1095–000. summary of the substance of any oral Accession Number: 20190221–5189. Applicants: Georgia Power Company. communication. Comments Due: 5 p.m. ET 3/14/19. Description: § 205(d) Rate Filing: Prohibited communications are Docket Numbers: ER19–1088–000. Entergy Interconnection Agreement included in a public, non-decisional file Applicants: Midcontinent Filing to be effective 1/1/2019. associated with, but not a part of, the Independent System Operator, Inc. Filed Date: 2/21/19. decisional record of the proceeding. Description: § 205(d) Rate Filing: Accession Number: 20190221–5255. Unless the Commission determines that 2019–02–21_SA 3249 Poweshiek Comments Due: 5 p.m. ET 3/14/19. the prohibited communication and any Reasnor 161 kV MPFCA (J498 J499 J500) Docket Numbers: ER19–1096–000. responses thereto should become a part to be effective 2/8/2019. Applicants: Mississippi Power of the decisional record, the prohibited Filed Date: 2/21/19. Company. off-the-record communication will not Accession Number: 20190221–5194. Description: § 205(d) Rate Filing: be considered by the Commission in Comments Due: 5 p.m. ET 3/14/19. Entergy Interconnection Agreement reaching its decision. Parties to a Docket Numbers: ER19–1089–000. Filing to be effective 1/1/2019. proceeding may seek the opportunity to Applicants: Midcontinent Filed Date: 2/21/19. respond to any facts or contentions Independent System Operator, Inc. Accession Number: 20190221–5256. made in a prohibited off-the-record Description: § 205(d) Rate Filing: Comments Due: 5 p.m. ET 3/14/19. communication, and may request that 2019–02–21_SA 3250 NSP-Deuel The filings are accessible in the the Commission place the prohibited Harvest Wind Energy FCA (J526) to be Commission’s eLibrary system by communication and responses thereto effective 2/8/2019. clicking on the links or querying the in the decisional record. The Filed Date: 2/21/19. docket number. Commission will grant such a request Accession Number: 20190221–5222. Any person desiring to intervene or only when it determines that fairness so Comments Due: 5 p.m. ET 3/14/19. protest in any of the above proceedings requires. Any person identified below as

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having made a prohibited off-the-record CFR 1501.6, made under 18 CFR Commission’s website at http:// communication shall serve the 385.2201(e) (1) (v). www.ferc.gov using the eLibrary link. document on all parties listed on the The following is a list of off-the- Enter the docket number, excluding the official service list for the applicable record communications recently last three digits, in the docket number proceeding in accordance with Rule received by the Secretary of the field to access the document. For 2010, 18 CFR 385.2010. Commission. The communications assistance, please contact FERC Online Exempt off-the-record listed are grouped by docket numbers in Support at FERCOnlineSupport@ communications are included in the ascending order. These filings are ferc.gov or toll free at (866) 208–3676, or decisional record of the proceeding, available for electronic review at the for TTY, contact (202)502–8659. unless the communication was with a Commission in the Public Reference cooperating agency as described by 40 Room or may be viewed on the

Docket No. File date Presenter or requester

Prohibited: 1. CP18–5 ...... 2/11/19 Cabot Oil & Gas Corpora- tion. ER19–570 2. EL19–9–000 ...... 2/8/19 Congress Member Frank Pallone, Jr. Exempt: 1. P–2413 ...... 2/7/19 Congress Member Jody Hice.

Dated: February 21, 2019. B. Federal Reserve Bank of San members, agenda or minutes of the non- Nathaniel J. Davis, Sr., Francisco (Gerald C. Tsai, Director, confidential portions of this meeting Deputy Secretary. Applications and Enforcement) 101 should contact: Mrs. Heather Phelps, [FR Doc. 2019–03399 Filed 2–26–19; 8:45 am] Market Street, San Francisco, California Acting Committee Management Officer, BILLING CODE 6717–01–P 94105–1579: Office of Extramural Research, 1. Ivo A. Tjan, North Tustin, Education and Priority Populations, California; to retain voting shares of AHRQ, 5600 Fishers Lane, Rockville, FEDERAL RESERVE SYSTEM CommerceWest Bank, Irvine, California. Maryland 20850, Telephone: (301)427– Board of Governors of the Federal Reserve 1128. Change in Bank Control Notices; System, February 22, 2019. Agenda items for this meeting are Acquisitions of Shares of a Bank or Yao-Chin Chao, subject to change as priorities dictate. Bank Holding Company Assistant Secretary of the Board. SUPPLEMENTARY INFORMATION: A SEP is a The notificants listed below have [FR Doc. 2019–03364 Filed 2–26–19; 8:45 am] group of experts in fields related to health care research who are invited by applied under the Change in Bank BILLING CODE P Control Act (‘‘Act’’) (12 U.S.C. 1817(j)) AHRQ, and agree to be available, to and § 225.41 of the Board’s Regulation conduct on an as needed basis, Y (12 CFR 225.41) to acquire shares of DEPARTMENT OF HEALTH AND scientific reviews of applications for a bank or bank holding company. The HUMAN SERVICES AHRQ support. Individual members of factors that are considered in acting on the SEP do not attend regularly- the notices are set forth in paragraph 7 Agency for Healthcare Research and scheduled meetings and do not serve for of the Act (12 U.S.C. 1817(j)(7)). Quality fixed terms or a long period of time. The notices are available for Rather, they are asked to participate in immediate inspection at the Federal Notice of Meeting particular review meetings which Reserve Bank indicated. The notices require their type of expertise. AGENCY: Agency for Healthcare Research In accordance with section 10(a)(2) of also will be available for inspection at and Quality, HHS. the offices of the Board of Governors. the Federal Advisory Committee Act (5 ACTION: Interested persons may express their Notice. U.S.C. App. 2), announcement is made of an AHRQ SEP meeting on AHRQ– views in writing to the Reserve Bank SUMMARY: The Agency for Healthcare HS–18–002, ‘‘Screening and indicated for that notice or to the offices Research and Quality (AHRQ) is Management of Unhealthy Alcohol Use of the Board of Governors. Comments announcing a Special Emphasis Panel in Primary Care: Dissemination and must be received not later than March (SEP) meeting on AHRQ–HS–18–002, Implementation of PCOR Evidence 14, 2019. ‘‘Screening and Management of (R18).’’ A. Federal Reserve Bank of Unhealthy Alcohol Use in Primary Care: Each SEP meeting will commence in Minneapolis (Mark A. Rauzi, Vice Dissemination and Implementation of open session before closing to the public President), 90 Hennepin Avenue, PCOR Evidence (R18).’’ Minneapolis, Minnesota 55480–0291: for the duration of the meeting. The SEP 1. Scott Koop, Galesville, Wisconsin, DATES: April 1, 2019 (Open on April 1st meeting referenced above will be closed individually and acting in concert with from 8:30 a.m. to 8:45 a.m. and closed to the public in accordance with the Steve Koop, LaCrosse, Wisconsin, and for the remainder of the meeting). provisions set forth in 5 U.S.C. App. 2, Mark Kopp, Galesville, Wisconsin; all to ADDRESSES: Bethesda North Marriott section 10(d), 5 U.S.C. 552b(c)(4), and 5 retain shares of Gale Bank Holding Hotel & Conference Center, 5701 U.S.C. 552b(c)(6). Grant applications for Company, Inc., and thereby indirectly Marinelli Rd., Rockville, MD 20852. AHRQ–HS–18–002, ‘‘Screening and retain shares of Bluff View Bank, both FOR FURTHER INFORMATION CONTACT: Management of Unhealthy Alcohol Use of Galesville, Wisconsin. Anyone wishing to obtain a roster of in Primary Care: Dissemination and

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Implementation of PCOR Evidence U.S.C. App. 2), announcement is made all finished dosage forms where (R18)’’ are to be reviewed and discussed of an AHRQ SEP meeting on Conference appropriate, including those submitted at this meeting. The grant applications Grants (R13). in NDAs, ANDAs, drug master files, and the discussions could disclose Each SEP meeting will commence in biologics license applications (BLAs), confidential trade secrets or commercial open session before closing to the public and nonapplication over the counter property such as patentable material, for the duration of the meeting. The SEP products. Scientific principles described and personal information concerning meeting referenced above will be closed in this draft guidance may also be individuals associated with the grant to the public in accordance with the applicable to continuous manufacturing applications, the disclosure of which provisions set forth in 5 U.S.C. App. 2, technologies used for these drugs. would constitute a clearly unwarranted section 10(d), 5 U.S.C. 552b(c)(4), and 5 However, this draft guidance is not invasion of personal privacy. U.S.C. 552b(c)(6). Grant applications for intended to provide recommendations Conference Grants (R13) are to be specific to continuous manufacturing Francis D. Chesley, Jr., reviewed and discussed at this meeting. technologies used for biological Acting Deputy Director. The grant applications and the products under a BLA. [FR Doc. 2019–03382 Filed 2–26–19; 8:45 am] discussions could disclose confidential DATES: Submit either electronic or BILLING CODE 4160–90–P trade secrets or commercial property written comments on the draft guidance such as patentable material, and by May 28, 2019 to ensure that the personal information concerning Agency considers your comment on this DEPARTMENT OF HEALTH AND individuals associated with the grant HUMAN SERVICES draft guidance before it begins work on applications, the disclosure of which the final version of the guidance. Agency for Healthcare Research and would constitute a clearly unwarranted ADDRESSES: You may submit comments Quality invasion of personal privacy. on any guidance at any time as follows: Francis D. Chesley, Jr., Electronic Submissions Notice of Meeting Acting Deputy Director. Submit electronic comments in the AGENCY: Agency for Healthcare Research [FR Doc. 2019–03383 Filed 2–26–19; 8:45 am] following way: and Quality, HHS. BILLING CODE 4160–90–P • Federal eRulemaking Portal: ACTION: Notice. https://www.regulations.gov. Follow the SUMMARY: The Agency for Healthcare DEPARTMENT OF HEALTH AND instructions for submitting comments. Research and Quality (AHRQ) is HUMAN SERVICES Comments submitted electronically, announcing a Special Emphasis Panel including attachments, to https:// (SEP) meeting on Conference Grants Food and Drug Administration www.regulations.gov will be posted to (R13). the docket unchanged. Because your [Docket No. FDA–2019–D–0298] comment will be made public, you are DATES: April 4, 2019 (Open on April 4th Quality Considerations for Continuous solely responsible for ensuring that your from 10:00 a.m. to 10:15 a.m. and closed comment does not include any for the remainder of the meeting). Manufacturing; Draft Guidance for Industry; Availability confidential information that you or a ADDRESSES: Agency for Healthcare third party may not wish to be posted, Research and Quality (AHRQ), 5600 AGENCY: Food and Drug Administration, such as medical information, your or Fishers Lane, Rockville, MD 20850. HHS. anyone else’s Social Security number, or FOR FURTHER INFORMATION CONTACT: ACTION: Notice of availability. confidential business information, such Anyone wishing to obtain a roster of as a manufacturing process. Please note members, agenda or minutes of the non- SUMMARY: The Food and Drug that if you include your name, contact confidential portions of this meeting Administration (FDA or Agency) is information, or other information that should contact: Heather Phelps, Acting announcing the availability of a draft identifies you in the body of your Committee Management Officer, Office guidance for industry entitled ‘‘Quality comments, that information will be of Extramural Research, Education and Considerations for Continuous posted on https://www.regulations.gov. Priority Populations, AHRQ, 5600 Manufacturing.’’ This draft guidance • If you want to submit a comment Fishers Lane, Rockville, Maryland provides information regarding FDA’s with confidential information that you 20850, Telephone: (301) 427–1128. current thinking on the quality do not wish to be made available to the Agenda items for this meeting are considerations for continuous public, submit the comment as a subject to change as priorities dictate. manufacturing of small molecule, solid written/paper submission and in the SUPPLEMENTARY INFORMATION: An SEP is oral drug products that are regulated by manner detailed (see ‘‘Written/Paper a group of experts in fields related to the Center for Drug Evaluation and Submissions’’ and ‘‘Instructions’’). health care research who are invited by Research (CDER). The draft guidance Written/Paper Submissions the Agency for Healthcare Research and describes several key quality Quality (AHRQ), and agree to be considerations and provides Submit written/paper submissions as available, to conduct on an as needed recommendations for how applicants follows: basis, scientific reviews of applications should address these considerations in • Mail/Hand delivery/Courier (for for AHRQ support. Individual members new drug applications (NDAs), written/paper submissions): Dockets of the Panel do not attend regularly- abbreviated new drug applications Management Staff (HFA–305), Food and scheduled meetings and do not serve for (ANDAs), and supplemental NDAs and Drug Administration, 5630 Fishers fixed terms or a long period of time. ANDAs, for small molecule, solid oral Lane, Rm. 1061, Rockville, MD 20852. Rather, they are asked to participate in drug products that are produced via a • For written/paper comments particular review meetings which continuous manufacturing process. FDA submitted to the Dockets Management require their type of expertise. supports the development and Staff, FDA will post your comment, as In accordance with section 10(a)(2) of implementation of continuous well as any attachments, except for the Federal Advisory Committee Act (5 manufacturing for drug substances and information submitted, marked and

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identified, as confidential, if submitted Hampshire Ave., Hillandale Building, Establishment of Public Docket’’). FDA as detailed in ‘‘Instructions.’’ 4th Floor, Silver Spring, MD 20993– invites general comments on the quality Instructions: All submissions received 0002. Send one self-addressed adhesive considerations described in the draft must include the Docket No. FDA– label to assist that office in processing guidance, including comments on 2019–D–0298 for ‘‘Quality your requests. See the SUPPLEMENTARY control strategy, facility, and process Considerations for Continuous INFORMATION section for electronic validation considerations for continuous Manufacturing.’’ Received comments access to the draft guidance document. manufacturing of small molecule, solid will be placed in the docket and, except FOR FURTHER INFORMATION CONTACT: Sau oral drug products. for those submitted as ‘‘Confidential L. Lee, Center for Drug Evaluation and In addition to this draft guidance, Submissions,’’ publicly viewable at Research, Food and Drug pharmaceutical manufacturers with https://www.regulations.gov or at the Administration (HFD–600), 10903 New product-specific continuous Dockets Management Staff between 9 Hampshire Ave., Bldg. 22, Rm. 2130, manufacturing questions may submit a a.m. and 4 p.m., Monday through Silver Spring, MD 20993–0002, 301– proposal to the Emerging Technology Friday. 796–2905. program. Refer to FDA guidance for • Confidential Submissions—To industry, ‘‘Advancement of Emerging SUPPLEMENTARY INFORMATION: submit a comment with confidential Technology Applications for information that you do not wish to be I. Background Pharmaceutical Innovation and made publicly available, submit your Modernization’’ (September 2017) at FDA is announcing the availability of comments only as a written/paper https://www.fda.gov/ucm/groups/ a draft guidance for industry entitled submission. You should submit two fdagov-public/@fdagov-drugs-gen/ ‘‘Quality Considerations for Continuous copies total. One copy will include the documents/document/ucm478821.pdf. information you claim to be confidential Manufacturing.’’ The draft guidance was This draft guidance is being issued with a heading or cover note that states prepared by CDER’s Office of consistent with FDA’s good guidance ‘‘THIS DOCUMENT CONTAINS Pharmaceutical Quality, which is practices regulation (21 CFR 10.115). CONFIDENTIAL INFORMATION.’’ The committed to supporting and enabling The draft guidance, when finalized, will Agency will review this copy, including pharmaceutical innovation and represent the current thinking of FDA the claimed confidential information, in modernization as part of the Agency’s on ‘‘Quality Considerations for its consideration of comments. The mission to protect and promote public Continuous Manufacturing.’’ It does not second copy, which will have the health. While the implementation of establish any rights for any person and claimed confidential information emerging technology, such as is not binding on FDA or the public. redacted/blacked out, will be available continuous manufacturing, is critical to You can use an alternative approach if for public viewing and posted on modernizing pharmaceutical it satisfies the requirements of the https://www.regulations.gov. Submit manufacturing and improving quality, applicable statutes and regulations. This both copies to the Dockets Management FDA also recognizes that innovative guidance is not subject to Executive Staff. If you do not wish your name and approaches to manufacturing may Order 12866. contact information to be made publicly represent challenges to industry and available, you can provide this regulators. By the very nature of an II. Additional Issues for Consideration information on the cover sheet and not approach being innovative, a limited In addition to comments on the draft in the body of your comments and you knowledge and experiential base about guidance generally, FDA is requesting must identify this information as the technology may exist. comments and related supporting ‘‘confidential.’’ Any information marked Pharmaceutical companies may have information on the following topics: (1) as ‘‘confidential’’ will not be disclosed concerns that using continuous Data storage and handling from process except in accordance with 21 CFR 10.20 manufacturing could result in delays analytical technology systems, (2) and other applicable disclosure law. For while FDA reviewers and investigators potential approaches for situations more information about FDA’s posting familiarize themselves with the new where direct attribute measurement is of comments to public dockets, see 80 technologies and determine how they fit not possible (e.g., low-dose FR 56469, September 18, 2015, or access within existing regulatory approaches. compounds), (3) contract manufacturers the information at: https://www.gpo.gov/ This draft guidance provides employing continuous manufacturing, fdsys/pkg/FR-2015-09-18/pdf/2015- information regarding FDA’s current (4) risk-based reporting of routine model 23389.pdf. thinking on the quality considerations maintenance and updates, and (5) Docket: For access to the docket to for continuous manufacturing of small statistical approaches using large read background documents or the molecule, solid oral drug products that samples (e.g., Large N). FDA is seeking electronic and written/paper comments are regulated by CDER. The draft public comment on topics for potential received, go to https:// guidance describes several key quality inclusion in the final guidance or www.regulations.gov and insert the considerations and provides additional guidance and any other docket number, found in brackets in the recommendations for how applicants alternative approaches. heading of this document, into the should address these considerations in III. Paperwork Reduction Act of 1995 ‘‘Search’’ box and follow the prompts NDAs, ANDAs, and supplemental NDAs and/or go to the Dockets Management and ANDAs, for small molecule, solid This draft guidance contains Staff, 5630 Fishers Lane, Rm. 1061, oral drug products that are produced via information collection provisions that Rockville, MD 20852. a continuous manufacturing process. are subject to review by the Office of You may submit comments on any The draft guidance takes into account Management and Budget (OMB) under guidance at any time (see 21 CFR the comments that were submitted to the Paperwork Reduction Act of 1995 10.115(g)(5)). Docket No. FDA–2017–N–2697 (PRA) (44 U.S.C. 3501–3520). The Submit written requests for single (‘‘Submission of Proposed collections of information in 21 CFR copies of the draft guidance to the Recommendations for Industry on parts 210–211 have been approved Division of Drug Information, Center for Developing Continuous Manufacturing under OMB control number 0910–0139. Drug Evaluation and Research, Food of Solid Dosage Drug Products in The submission of INDs under 21 CFR and Drug Administration, 10001 New Pharmaceutical Manufacturing; 312.23 is approved by OMB control

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number 0910–0014. The submission of Contact Person: Greg Bissonette, Ph.D., DEPARTMENT OF HEALTH AND BLAs under 21 CFR 601.2 and 601.12 is Scientific Review Officer, Scientific Review HUMAN SERVICES approved by OMB control number Branch, National Institute on Aging, 7201 0910–0338. The submission of NDAs Wisconsin Avenue, Gateway Building, Suite National Institutes of Health and ANDAs under 21 CFR 314.50, 2W200, Bethesda, MD 20892, 301–402–1622, 314.70, 314.71, 314.94, and 314.97 is [email protected]. Center for Scientific Review; Notice of approved by OMB control number (Catalogue of Federal Domestic Assistance Closed Meetings 0910–0001. The information to be Program Nos. 93.866, Aging Research, included in a meeting request for a National Institutes of Health, HHS) Pursuant to section 10(d) of the Federal Advisory Committee Act, as product submitted in an IND, BLA, or Dated: February 21, 2019. NDA is approved by OMB control amended, notice is hereby given of the number 0910–0429 (‘‘Guidance for Melanie J. Pantoja, following meetings. Industry on Formal Meetings Between Program Analyst, Office of Federal Advisory The meetings will be closed to the the FDA and Sponsors or Applicants’’ Committee Policy. public in accordance with the (December 2017)). Information to be [FR Doc. 2019–03346 Filed 2–26–19; 8:45 am] provisions set forth in sections included in a meeting request for a BILLING CODE 4140–01–P 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., product submitted in an ANDA is as amended. The grant applications and approved by OMB control number the discussions could disclose 0910–0797 (‘‘Guidance on Controlled DEPARTMENT OF HEALTH AND confidential trade secrets or commercial Correspondence Related to Generic Drug HUMAN SERVICES property such as patentable material, Development’’ (December 2015)). and personal information concerning National Institutes of Health IV. Electronic Access individuals associated with the grant applications, the disclosure of which Persons with access to the internet National Institute on Aging: Notice of would constitute a clearly unwarranted may obtain the draft guidance at either Closed Meeting invasion of personal privacy. https://www.fda.gov/Drugs/Guidance ComplianceRegulatoryInformation/ Pursuant to section 10(d) of the Name of Committee: Center for Scientific Guidances/default.htm or https:// Federal Advisory Committee Act, as Review Special Emphasis Panel; Program www.regulations.gov. amended, notice is hereby given of the Projects: HIV Eradication and Substance Abuse. Dated: February 22, 2019. following meeting. Date: March 14, 2019. Lowell J. Schiller, The meeting will be closed to the Time: 2:00 p.m. to 5:00 p.m. Acting Associate Commissioner for Policy. public in accordance with the Agenda: To review and evaluate grant [FR Doc. 2019–03413 Filed 2–26–19; 8:45 am] provisions set forth in sections applications. BILLING CODE 4164–01–P 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Place: National Institutes of Health, 6701 as amended. The grant applications and Rockledge Drive, Bethesda, MD 20892 the discussions could disclose (Virtual Meeting). DEPARTMENT OF HEALTH AND confidential trade secrets or commercial Contact Person: Shiv A. Prasad, Ph.D., HUMAN SERVICES property such as patentable material, Scientific Review Officer, Center for and personal information concerning Scientific Review, National Institutes of National Institutes of Health individuals associated with the grant Health, 6701 Rockledge Drive, Room 5220, applications, the disclosure of which MSC 7852, Bethesda, MD 20892, 301–443– National Institute on Aging; Notice of would constitute a clearly unwarranted 5779, [email protected]. Closed Meeting invasion of personal privacy. This notice is being published less than 15 days prior to the meeting due to the timing Pursuant to section 10(d) of the Name of Committee: National Institute on limitations imposed by the review and Federal Advisory Committee Act, as Aging Initial Review Group; Behavior and funding cycle. amended, notice is hereby given of the Social Science of Aging Review Committee, following meeting. NIA–S. Name of Committee: Center for Scientific The meeting will be closed to the Date: June 5–6, 2019. Review Special Emphasis Panel; PAR 17– 158: Secondary Data Analyses For NIMH public in accordance with the Time: 11:00 a.m. to 11:00 a.m. Research Domain Criteria (R03). provisions set forth in sections Agenda: To review and evaluate grant Date: March 21, 2019. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., applications. Time: 2:00 p.m. to 6:00 p.m. as amended. The grant applications and Place: Hotel Kabuki, 1625 Post Street, San Agenda: To review and evaluate grant the discussions could disclose Francisco, CA 94155. applications. confidential trade secrets or commercial Contact Person: Carmen Moten, Ph.D., Place: National Institutes of Health, 6701 property such as patentable material, MPH, Scientific Review Officer, National Rockledge Drive, Bethesda, MD 20892 and personal information concerning Cancer Institute, 6116 Executive Blvd., Suite individuals associated with the grant (Telephone Conference Call). 602, MSC 8341, Rockville, MD 20852–8341, Contact Person: Julius Cinque, MS, applications, the disclosure of which 301–496–8589, [email protected]. would constitute a clearly unwarranted Scientific Review Officer, Center for (Catalogue of Federal Domestic Assistance invasion of personal privacy. Scientific Review, National Institutes of Program Nos. 93.866, Aging Research, Health, 6701 Rockledge Drive, Room 5186, Name of Committee: National Institute on National Institutes of Health, HHS) MSC 7846, Bethesda, MD 20892, (301) 435– Aging Initial Review Group; Neuroscience of 1252, [email protected]. Aging Review Committee, NIA–N. Dated: February 21, 2019. Date: June 4–5, 2019. Melanie J. Pantoja, (Catalogue of Federal Domestic Assistance Time: 11:00 a.m. to 11:00 a.m. Program Nos. 93.306, Comparative Medicine; Program Analyst, Office of Federal Advisory 93.333, Clinical Research, 93.306, 93.333, Agenda: To review and evaluate grant Committee Policy. applications. 93.337, 93.393–93.396, 93.837–93.844, Place: Hotel Kabuki, 1625 Post Street, San [FR Doc. 2019–03351 Filed 2–26–19; 8:45 am] 93.846–93.878, 93.892, 93.893, National Francisco, CA 94155. BILLING CODE 4140–01–P Institutes of Health, HHS)

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Dated: February 21, 2019. The meeting will be closed to the directed to the: Office of Management Melanie J. Pantoja, public in accordance with the and Budget, Office of Regulatory Affairs, Program Analyst, Office of Federal Advisory provisions set forth in sections [email protected] or by Committee Policy. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., fax to 202–395–6974, Attention: Desk [FR Doc. 2019–03348 Filed 2–26–19; 8:45 am] as amended. The grant applications and Officer for NIH. BILLING CODE 4140–01–P the discussions could disclose FOR FURTHER INFORMATION CONTACT: To confidential trade secrets or commercial request more information on the property such as patentable material, proposed project or to obtain a copy of DEPARTMENT OF HEALTH AND and personal information concerning the data collection plans and HUMAN SERVICES individuals associated with the grant instruments, contact: Ms. Dione applications, the disclosure of which Washington, Health Science Policy National Institutes of Health would constitute a clearly unwarranted Analyst, Office of Strategic Planning, invasion of personal privacy. National Institute on Aging; Notice of Initiative Development and Analysis, Closed Meeting Name of Committee: National Institute on 5601 Fishers Lane, Rockville, Maryland Aging Initial Review Group; Biological Aging 20892 or call non-toll-free number (240) Pursuant to section 10(d) of the Review Committee, NIA–B. 669–2100 or Email your request, Federal Advisory Committee Act, as Date: June 4–5, 2019. including your address to: amended, notice is hereby given of the Time: 11:00 a.m. to 11:00 a.m. [email protected]. Agenda: To review and evaluate grant following meeting. SUPPLEMENTARY INFORMATION: This The meeting will be closed to the applications. Place: Hotel Kabuki, 1625 Post Street, San proposed information collection was public in accordance with the Francisco, CA 94155. previously published in the Federal provisions set forth in sections Contact Person: Bita Nakhai, Ph.D., Register on December 14, 2018, page 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Scientific Review Branch, National Institute 64347 (83 FR 64347) and allowed 60 as amended. The grant applications and on Aging, Gateway Bldg., 2C212, 7201 days for public comment. No public the discussions could disclose Wisconsin Avenue, Bethesda, MD 20814, 301–402–7701, [email protected]. comments were received. The purpose confidential trade secrets or commercial of this notice is to allow an additional (Catalogue of Federal Domestic Assistance property such as patentable material, 30 days for public comment. and personal information concerning Program Nos. 93.866, Aging Research, National Institutes of Health, HHS) The National Institute of Allergy and individuals associated with the grant Infectious Diseases (NIAID), National applications, the disclosure of which Dated: February 21, 2019. Institutes of Health, may not conduct or would constitute a clearly unwarranted Melanie J. Pantoja, sponsor, and the respondent is not invasion of personal privacy. Program Analyst, Office of Federal Advisory required to respond to, an information Name of Committee: National Institute on Committee Policy. collection that has been extended, Aging Initial Review Group; Clinical Aging [FR Doc. 2019–03350 Filed 2–26–19; 8:45 am] revised, or implemented on or after Review Committee, NIA–C. BILLING CODE 4140–01–P October 1, 1995, unless it displays a Date: June 5–6, 2019. currently valid OMB control number. Time: 11:00 a.m. to 11:00 a.m. In compliance with Section Agenda: To review and evaluate grant DEPARTMENT OF HEALTH AND 3507(a)(1)(D) of the Paperwork applications. HUMAN SERVICES Place: Hotel Kabuki, 1625 Post Street, San Reduction Act of 1995, the National Francisco, CA 94155. National Institutes of Health Institutes of Health (NIH) has submitted Contact Person: Alicja L. Markowska, to the Office of Management and Budget Ph.D., DSC, National Institute on Aging, Submission for OMB Review; 30-Day (OMB) a request for review and National Institutes of Health, Gateway Comment Request Generic Clearance approval of the information collection Building 2C212, 7201 Wisconsin Avenue, for the Collection of Qualitative listed below. Bethesda, MD 20892, 301–496–9666, Proposed Collection: Generic [email protected]. Feedback on Agency Service Delivery (NIAID) Clearance for the Collection of (Catalogue of Federal Domestic Assistance Qualitative Feedback on Agency Service Program Nos. 93.866, Aging Research, AGENCY: National Institutes of Health, National Institutes of Health, HHS) Delivery (NIAID), 0925–0668, HHS. Expiration Date 2/28/2019, Dated: February 21, 2019. ACTION: Notice. EXTENSION, National Institute of Melanie J. Pantoja, Allergy and Infectious Diseases (NIAID). SUMMARY: Program Analyst, Office of Federal Advisory In compliance with the Need and Use of Information Committee Policy. Paperwork Reduction Act of 1995, the Collection: There are no changes being National Institutes of Health (NIH) has [FR Doc. 2019–03349 Filed 2–26–19; 8:45 am] requested for this submission. The submitted to the Office of Management BILLING CODE 4140–01–P proposed information collection activity and Budget (OMB) a request for review provides a means to garner qualitative and approval of the information customer and stakeholder feedback in DEPARTMENT OF HEALTH AND collection listed below. an efficient, timely manner, in HUMAN SERVICES DATES: Comments regarding this accordance with the Administration’s information collection are best assured commitment to improving service National Institutes of Health of having their full effect if received delivery. By qualitative feedback we within 30-days of the date of this mean information that provides useful National Institute on Aging: Notice of publication. Closed Meeting insights on perceptions and opinions ADDRESSES: Written comments and/or but are not statistical surveys that yield Pursuant to section 10(d) of the suggestions regarding the item(s) quantitative results that can be Federal Advisory Committee Act, as contained in this notice, especially generalized to the population of study. amended, notice is hereby given of the regarding the estimated public burden This feedback will provide information following meeting. and associated response time, should be about the NIAID’s customer or

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stakeholder perceptions, experiences will allow for ongoing, collaborative and OMB approval is requested for 3 and expectations, provide an early actionable communications between the years. There are no costs to respondents warning of issues with service, or focus NIAID and its customers and other than their time. The total attention on areas where stakeholders. It will also allow feedback estimated annualized burden hours are communication, training or changes in to contribute directly to the 2,511. operations might improve delivery of improvement of program management. products or services. These collections

ESTIMATED ANNUALIZED BURDEN HOURS

Annual Type of collection Number of frequency Hours per Total hours respondents per response response

Customer satisfaction surveys ...... 4,000 1 30/60 2,000 In-Depth Interviews (IDIs) or Small Discussion Groups ...... 50 1 90/60 75 Individual Brief Interviews ...... 50 1 15/60 13 Focus Groups ...... 30 1 2 60 Pilot testing surveys ...... 25 1 30/60 13 Conferences and Training Pre- and Post-surveys ...... 500 1 30/60 250 Website or Software Usability Tests ...... 50 1 2 100

Total ...... 4,725 4,725 ...... 2,511

Dated: February 14, 2019. close early if the Committee has Docket Management System at https:// Brandie K. Taylor Bumgardner, completed its business. www.regulations.gov/privacyNotice. Project Clearance Liaison, National Institute Comments and supporting Docket Search: For access to the of Allergy and Infectious Diseases, National documentation: To ensure your docket to read documents or comments Institutes of Health. comments are received by Committee related to this notice, go to http:// [FR Doc. 2019–03357 Filed 2–26–19; 8:45 am] members before the meetings, submit www.regulations.gov, and use ‘‘USCG– BILLING CODE 4140–01–P your written comments no later than 2019–0041’’ in the ‘‘Search’’ box, press March 11, 2019. Enter, and then click on the item you wish to view. ADDRESSES: All meetings will be held at DEPARTMENT OF HOMELAND Omni Riverfront Hotel, 701 Convention FOR FURTHER INFORMATION CONTACT: SECURITY Center Boulevard, New Orleans, Commander Jose Perez, Designated Louisiana 70130, (504) 524–8200, Federal Officer of the National Offshore Coast Guard https://www.omnihotels.com/hotels/ Safety Advisory Committee, new-orleans-riverfront. Commandant (CG–OES–2), U.S. Coast Guard, 2703 Martin Luther King Jr. [Docket No. USCG–2019–0041] For information on facilities or Avenue SE, Stop 7509, Washington, DC services for individuals with disabilities National Offshore Safety Advisory 20593–7509; telephone (202) 372–1410, or to request special assistance at the Committee fax (202) 372–8382 or email meetings, contact the individuals listed [email protected], or Mr. Patrick AGENCY: U.S. Coast Guard, Department in the FOR FURTHER INFORMATION Clark, telephone (202) 372–1358, fax of Homeland Security. CONTACT section as soon as possible. (202) 372–8382 or email ACTION: Notice of Federal advisory Instructions: You are free to submit [email protected]. committee meeting. comments at any time, including orally at the meetings, but if you want SUPPLEMENTARY INFORMATION: Notice of SUMMARY: The National Offshore Safety Committee members to review your this meeting is in compliance with the Advisory will meet in New Orleans, comment before the meetings, please Federal Advisory Committee Act, (Title Louisiana to discuss Committee matters submit your comments no later than 5 U.S.C. Appendix). The National relating to the safety of operations and March 11, 2019. We are particularly Offshore Safety Advisory Committee other matters affecting the offshore oil interested in the comments in the provides advice and recommendations and gas industry. All meetings will be ‘‘Agenda’’ section below. You must to the Department of Homeland Security open to the public. include ‘‘Department of Homeland on matters relating to activities directly DATES: Security’’ and docket number USCG– involved with or in support of the Meetings: The National Offshore 2019–0041. Written comments may also exploration of offshore mineral and Safety Advisory Committee and its be submitted using the Federal energy resources insofar as they relate to Subcommittee will meet on Tuesday, eRulemaking Portal at http:// matters within Coast Guard jurisdiction. March 19, 2019 and on Wednesday www.regulations.gov. If you encounter Agenda March 20, 2019. The Use of Offshore technical difficulties with comments Supply Vessels and Other Non-Purpose submission, contact the individual Day 1 Built Vessels for Restoration/Recovery listed in the FOR FURTHER INFORMATION The National Offshore Safety Activities Subcommittee will meet on CONTACT section below. Comments Advisory Committee’s The Use of Tuesday, March 19, 2019 from 1 p.m. to received will be posted without Offshore Supply Vessels and Other Non- 4 p.m. The full Committee will meet on alteration at http://www.regulations.gov, Purpose Built Vessels for Restoration/ Wednesday, March 20, 2019 from 8 a.m. including any personal information Recovery Activities Subcommittee will to 6 p.m. (All times are Central Time). provided. You may review the Privacy meet on March 19, 2019 from 1:00 p.m. Please note that these meetings may Act and Security Notice for the Federal to 4:00 p.m. (Central Time) to review,

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discuss and formulate recommendations committee discusses the issues and DATES: Comments are to be submitted to be presented to the full Committee prior to deliberations and voting. There on or before May 28, 2019. during the March 20, 2019 public will also be a public comment period at ADDRESSES: The Preliminary FIRM, and meeting. the end of the meeting. Speakers are where applicable, the FIS report for requested to limit their comments to 3 Day 2 each community are available for minutes. Please note that the public inspection at both the online location The National Offshore Safety comment period may end before the https://www.fema.gov/preliminaryflood Advisory Committee will hold a public period allotted, following the last call hazarddata and the respective meeting on March 20, 2019 from 8 a.m. for comments. Contact the individuals Community Map Repository address to 6 p.m. (Central Time) to review and listed in the FOR FURTHER INFORMATION listed in the tables below. Additionally, discuss the progress of, and any reports CONTACT section above to register as a the current effective FIRM and FIS and recommendations received from, speaker. report for each community are the above listed Subcommittee from Dated: February 19, 2019. accessible online through the FEMA their deliberations. The Committee will Jeffery G. Lantz, Map Service Center at https:// then use this information and consider msc.fema.gov for comparison. public comments in discussing and Director of Commercial Regulations and You may submit comments, identified Standards. formulating recommendations to the by Docket No. FEMA–B–1906, to Rick United States Coast Guard. Public [FR Doc. 2019–03352 Filed 2–26–19; 8:45 am] Sacbibit, Chief, Engineering Services comments or questions will be taken at BILLING CODE 9110–04–P Branch, Federal Insurance and the discretion of the Designated Federal Mitigation Administration, FEMA, 400 Officer during the discussion and C Street SW, Washington, DC 20472, DEPARTMENT OF HOMELAND recommendation portions of the (202) 646–7659, or (email) SECURITY meeting and during the public comment [email protected]. period, see Agenda item (5). A complete Federal Emergency Management FOR FURTHER INFORMATION CONTACT: Rick agenda for the March 20, 2019 full Agency Sacbibit, Chief, Engineering Services Committee meeting is as follows: Branch, Federal Insurance and (1) Welcoming remarks. Mitigation Administration, FEMA, 400 (2) General administration and [Docket ID FEMA–2019–0002; Internal Agency Docket No. FEMA–B–1906] C Street SW, Washington, DC 20472, acceptance of minutes from the (202) 646–7659, or (email) September 11, 2018 National Offshore Proposed Flood Hazard [email protected]; or visit Safety Advisory Committee public Determinations the FEMA Map Information eXchange meeting. (FMIX) online at https:// (3) Presentation on best practices for AGENCY: Federal Emergency www.floodmaps.fema.gov/fhm/fmx_ personnel transfers offshore. Management Agency, DHS. main.html. (4) Current business—Presentation and discussion of progress from The Use ACTION: Notice. SUPPLEMENTARY INFORMATION: FEMA of Offshore Supply Vessels and Other proposes to make flood hazard SUMMARY: Non-Purpose Built Vessels for Comments are requested on determinations for each community Restoration/Recovery Activities proposed flood hazard determinations, listed below, in accordance with section Subcommittee. which may include additions or 110 of the Flood Disaster Protection Act (5) New Business— modifications of any Base Flood of 1973, 42 U.S.C. 4104, and 44 CFR (a) Status of National Offshore Safety Elevation (BFE), base flood depth, 67.4(a). Advisory Committee recommendations Special Flood Hazard Area (SFHA) These proposed flood hazard to the U.S. Coast Guard. boundary or zone designation, or determinations, together with the (b) Presentation and discussion by the regulatory floodway on the Flood floodplain management criteria required Federal Emergency Management Agency Insurance Rate Maps (FIRMs), and by 44 CFR 60.3, are the minimum that on responding to a presidentially where applicable, in the supporting are required. They should not be declared disaster. Flood Insurance Study (FIS) reports for construed to mean that the community (c) Introduction of a new task the communities listed in the table must change any existing ordinances statement: Formation of a standing below. The purpose of this notice is to that are more stringent in their Regulatory Review Subcommittee seek general information and comment floodplain management requirements. (d) Presentation on lifeboat safety. regarding the preliminary FIRM, and The community may at any time enact (e) Bureau of Safety and where applicable, the FIS report that the stricter requirements of its own or Environmental Enforcement Update. Federal Emergency Management Agency pursuant to policies established by other (f) Maritime Administration Update. (FEMA) has provided to the affected Federal, State, or regional entities. (g) International Association of communities. The FIRM and FIS report These flood hazard determinations are Drilling Contractors Presentation. are the basis of the floodplain used to meet the floodplain (5) Public comment period. management measures that the management requirements of the NFIP A copy of all meeting documentation community is required either to adopt and are used to calculate the will be available at https:// or to show evidence of having in effect appropriate flood insurance premium homeport.uscg.mil/missions/ports-and- in order to qualify or remain qualified rates for new buildings built after the waterways/safety-advisory-committees/ for participation in the National Flood FIRM and FIS report become effective. nosac/meetings no later than March 11, Insurance Program (NFIP). In addition, The communities affected by the 2019. Alternatively, you may contact the FIRM and FIS report, once effective, flood hazard determinations are Commander Jose Perez or Mr. Patrick will be used by insurance agents and provided in the tables below. Any Clark as noted in the FOR FURTHER others to calculate appropriate flood request for reconsideration of the INFORMATION CONTACT section above. insurance premium rates for new revised flood hazard information shown Public comments or questions will be buildings and the contents of those on the Preliminary FIRM and FIS report taken throughout the meeting as the buildings. that satisfies the data requirements

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outlined in 44 CFR 67.6(b) is considered process for at least 60 days without a can be identified by the unique project an appeal. Comments unrelated to the mutually acceptable resolution of an number and Preliminary FIRM date flood hazard determinations also will be appeal. Additional information listed in the tables. Additionally, the considered before the FIRM and FIS regarding the SRP process can be found current effective FIRM and FIS report report become effective. online at https://www.floodsrp.org/pdfs/ for each community are accessible _ Use of a Scientific Resolution Panel srp overview.pdf. online through the FEMA Map Service (SRP) is available to communities in The watersheds and/or communities Center at https://msc.fema.gov for support of the appeal resolution affected are listed in the tables below. comparison. process. SRPs are independent panels of The Preliminary FIRM, and where experts in hydrology, hydraulics, and applicable, FIS report for each (Catalog of Federal Domestic Assistance No. other pertinent sciences established to community are available for inspection 97.022, ‘‘Flood Insurance.’’) review conflicting scientific and at both the online location https:// technical data and provide www.fema.gov/preliminaryfloodhazard Michael M. Grimm, recommendations for resolution. Use of data and the respective Community Assistant Administrator for Risk the SRP only may be exercised after Map Repository address listed in the Management, Department of Homeland FEMA and local communities have been tables. For communities with multiple Security, Federal Emergency Management engaged in a collaborative consultation ongoing Preliminary studies, the studies Agency.

Community Community map repository address

Floyd County, Iowa and Incorporated Areas Project: 16–07–2267S Preliminary Date: June 15, 2018

City of Charles City ...... City Hall, 105 Milwaukee Mall, Charles City, IA 50616. City of Floyd ...... City Hall, 617 Monroe Street, Floyd, IA 50435. City of Marble Rock ...... City Hall, 105 Main Street South, Marble Rock, IA 50653. City of Nora Springs ...... City Hall, 45 North Hawkeye Avenue, Nora Springs, IA 50458. City of Rockford ...... City Hall, 206 West Main Avenue, Rockford, IA 50468. City of Rudd ...... City Hall, 402 Chickasaw Street, Rudd, IA 50471. Unincorporated Areas of Floyd County ...... Floyd County Courthouse, 101 South Main Street, Suite 206, Charles City, IA 50616.

Winnebago County, Iowa and Incorporated Areas Project: 16–07–2071S Preliminary Date: June 15, 2018

City of Buffalo Center ...... City Hall, 201 2nd Avenue Southwest, Buffalo Center, IA 50424. City of Lake Mills ...... City Hall, 105 West Main Street, Lake Mills, IA 50450. City of Leland ...... City Hall, 316 Walnut Street, Leland, IA 50453. City of Rake ...... Town Hall, 101 East Grace Street, Rake, IA 50465. City of Scarville ...... City Hall, 121 Main Street, Scarville, IA 50473. City of Thompson ...... City Hall, 167 2nd Avenue West, Thompson, IA 50478. Unincorporated Areas of Winnebago County ...... Winnebago County Courthouse, 126 South Clark Street, Forest City, IA 50436.

Randolph County, Missouri and Incorporated Areas Project: 17–07–0185S Preliminary Date: July 13, 2018

City of Clark ...... City Hall, 401 Main Street, Clark, MO 65243. City of Huntsville ...... City Hall, 205 South Main Street, Huntsville, MO 65259. City of Moberly ...... City Hall, 101 West Reed Street, Moberly, MO 65270. Unincorporated Areas of Randolph County ...... Randolph County Courthouse, 372 Highway JJ, Suite A, Huntsville, MO 65259. Village of Cairo ...... Village Hall, 202 West Martin Street, Cairo, MO 65239. Village of Renick ...... Randolph County Courthouse, 372 Highway JJ, Suite A, Huntsville, MO 65259.

[FR Doc. 2019–03376 Filed 2–26–19; 8:45 am] ACTION: Notice. that a community is required either to BILLING CODE 9110–12–P adopt or to show evidence of having in SUMMARY: Flood hazard determinations, effect in order to qualify or remain which may include additions or qualified for participation in the Federal DEPARTMENT OF HOMELAND modifications of Base Flood Elevations Emergency Management Agency’s SECURITY (BFEs), base flood depths, Special Flood (FEMA’s) National Flood Insurance Hazard Area (SFHA) boundaries or zone Program (NFIP). In addition, the FIRM Federal Emergency Management designations, or regulatory floodways on and FIS report are used by insurance Agency the Flood Insurance Rate Maps (FIRMs) agents and others to calculate and where applicable, in the supporting appropriate flood insurance premium [Docket ID FEMA–2019–0002] Flood Insurance Study (FIS) reports rates for buildings and the contents of have been made final for the those buildings. Final Flood Hazard Determinations communities listed in the table below. DATES: The date of May 2, 2019 has been AGENCY: Federal Emergency The FIRM and FIS report are the basis established for the FIRM and, where Management Agency, DHS. of the floodplain management measures applicable, the supporting FIS report

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showing the new or modified flood www.floodmaps.fema.gov/fhm/fmx_ areas in accordance with 44 CFR part hazard information for each community. main.html. 60. ADDRESSES: The FIRM, and if SUPPLEMENTARY INFORMATION: The Interested lessees and owners of real applicable, the FIS report containing the Federal Emergency Management Agency property are encouraged to review the final flood hazard information for each (FEMA) makes the final determinations new or revised FIRM and FIS report community is available for inspection at listed below for the new or modified available at the address cited below for the respective Community Map flood hazard information for each each community or online through the Repository address listed in the tables community listed. Notification of these FEMA Map Service Center at https:// below and will be available online changes has been published in msc.fema.gov. through the FEMA Map Service Center newspapers of local circulation and 90 at https://msc.fema.gov by the date days have elapsed since that The flood hazard determinations are indicated above. publication. The Deputy Associate made final in the watersheds and/or FOR FURTHER INFORMATION CONTACT: Rick Administrator for Insurance and communities listed in the table below. Sacbibit, Chief, Engineering Services Mitigation has resolved any appeals (Catalog of Federal Domestic Assistance No. Branch, Federal Insurance and resulting from this notification. 97.022, ‘‘Flood Insurance.’’) Mitigation Administration, FEMA, 400 This final notice is issued in C Street SW, Washington, DC 20472, accordance with section 110 of the Michael M. Grimm, (202) 646–7659, or (email) Flood Disaster Protection Act of 1973, Assistant Administrator for Risk [email protected]; or visit 42 U.S.C. 4104, and 44 CFR part 67. Management, Department of Homeland the FEMA Map Information eXchange FEMA has developed criteria for Security, Federal Emergency Management (FMIX) online at https:// floodplain management in floodprone Agency.

Community Community map repository address

Tulsa County, Oklahoma and Incorporated Areas Docket No.: FEMA–B–1802

City of Tulsa ...... Stormwater Design Office, 2317 South Jackson Street, Suite 302, Tulsa, Oklahoma 74103.

Harris County, Texas and Incorporated Areas Docket No.: FEMA–B–1753

City of Houston ...... Public Works and Engineering Department, Floodplain Management Office, 1002 Washington Avenue, 3rd Floor, Houston, TX 77002. City of Missouri City ...... Development Services Department, 1522 Texas Parkway, Missouri City, TX 77489. City of South Houston ...... City Hall, 1018 Dallas Street, South Houston, TX 77587. Unincorporated Areas of Harris County ...... Harris County Engineering Department, Permit Division, 10555 North- west Freeway, Suite 120, Houston, TX 77092.

[FR Doc. 2019–03370 Filed 2–26–19; 8:45 am] where applicable, in the supporting each community are available for BILLING CODE 9110–12–P Flood Insurance Study (FIS) reports for inspection at both the online location the communities listed in the table https://www.fema.gov/preliminary below. The purpose of this notice is to floodhazarddata and the respective DEPARTMENT OF HOMELAND seek general information and comment Community Map Repository address SECURITY regarding the preliminary FIRM, and listed in the tables below. Additionally, where applicable, the FIS report that the the current effective FIRM and FIS Federal Emergency Management Federal Emergency Management Agency report for each community are Agency (FEMA) has provided to the affected accessible online through the FEMA communities. The FIRM and FIS report Map Service Center at https:// [Docket ID FEMA–2019–0002; Internal are the basis of the floodplain msc.fema.gov for comparison. Agency Docket No. FEMA–B–1905] management measures that the You may submit comments, identified Proposed Flood Hazard community is required either to adopt by Docket No. FEMA–B–1905, to Rick Determinations or to show evidence of having in effect Sacbibit, Chief, Engineering Services in order to qualify or remain qualified Branch, Federal Insurance and AGENCY: Federal Emergency for participation in the National Flood Mitigation Administration, FEMA, 400 Management Agency, DHS. Insurance Program (NFIP). In addition, C Street SW, Washington, DC 20472, ACTION: Notice. the FIRM and FIS report, once effective, (202) 646–7659, or (email) will be used by insurance agents and [email protected]. SUMMARY: Comments are requested on others to calculate appropriate flood FOR FURTHER INFORMATION CONTACT: Rick proposed flood hazard determinations, insurance premium rates for new Sacbibit, Chief, Engineering Services which may include additions or buildings and the contents of those Branch, Federal Insurance and modifications of any Base Flood buildings. Mitigation Administration, FEMA, 400 Elevation (BFE), base flood depth, C Street SW, Washington, DC 20472, Special Flood Hazard Area (SFHA) DATES: Comments are to be submitted (202) 646–7659, or (email) boundary or zone designation, or on or before May 28, 2019. [email protected]; or visit regulatory floodway on the Flood ADDRESSES: The Preliminary FIRM, and the FEMA Map Information eXchange Insurance Rate Maps (FIRMs), and where applicable, the FIS report for (FMIX) online at https://

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www.floodmaps.fema.gov/fhm/fmx_ The communities affected by the online at https://www.floodsrp.org/pdfs/ main.html. flood hazard determinations are srp_overview.pdf. SUPPLEMENTARY INFORMATION: FEMA provided in the tables below. Any The watersheds and/or communities proposes to make flood hazard request for reconsideration of the affected are listed in the tables below. determinations for each community revised flood hazard information shown The Preliminary FIRM, and where listed below, in accordance with section on the Preliminary FIRM and FIS report applicable, FIS report for each 110 of the Flood Disaster Protection Act that satisfies the data requirements community are available for inspection of 1973, 42 U.S.C. 4104, and 44 CFR outlined in 44 CFR 67.6(b) is considered at both the online location https:// 67.4(a). an appeal. Comments unrelated to the www.fema.gov/preliminaryfloodhazard These proposed flood hazard flood hazard determinations also will be data and the respective Community determinations, together with the considered before the FIRM and FIS Map Repository address listed in the floodplain management criteria required report become effective. tables. For communities with multiple by 44 CFR 60.3, are the minimum that Use of a Scientific Resolution Panel ongoing Preliminary studies, the studies are required. They should not be (SRP) is available to communities in can be identified by the unique project construed to mean that the community number and Preliminary FIRM date must change any existing ordinances support of the appeal resolution process. SRPs are independent panels of listed in the tables. Additionally, the that are more stringent in their current effective FIRM and FIS report experts in hydrology, hydraulics, and floodplain management requirements. for each community are accessible other pertinent sciences established to The community may at any time enact online through the FEMA Map Service review conflicting scientific and stricter requirements of its own or Center at https://msc.fema.gov for technical data and provide pursuant to policies established by other comparison. Federal, State, or regional entities. recommendations for resolution. Use of These flood hazard determinations are the SRP only may be exercised after (Catalog of Federal Domestic Assistance No. used to meet the floodplain FEMA and local communities have been 97.022, ‘‘Flood Insurance.’’) management requirements of the NFIP engaged in a collaborative consultation Michael M. Grimm, and are used to calculate the process for at least 60 days without a Assistant Administrator for Risk appropriate flood insurance premium mutually acceptable resolution of an Management, Department of Homeland rates for new buildings built after the appeal. Additional information Security, Federal Emergency Management FIRM and FIS report become effective. regarding the SRP process can be found Agency.

Community Community map repository address

Hamilton County, Florida and Incorporated Areas Project: 12–04–7914S Preliminary Date: September 28, 2018

Unincorporated Areas of Hamilton County ...... Hamilton County Building Department, 204 Northeast 1st Street, Jas- per, FL 32052.

Madison County, Florida and Incorporated Areas Project: 12–04–7914S Preliminary Date: September 28, 2018

City of Madison ...... City Hall, 321 Southwest Rutledge Street, Madison, FL 32340. Town of Lee ...... Town Hall, 286 Northeast County Road 255, Lee, FL 32059. Unincorporated Areas of Madison County ...... Madison County Courthouse Annex, 229 Southwest Pinckney Street, Madison, FL 32340.

Pasco County, Florida and Incorporated Areas Project: 13–04–1877S Preliminary Date: April 27, 2018

City of New Port Richey ...... City Hall, 5919 Main Street, New Port Richey, FL 34652. City of Port Richey ...... City Hall, Planning Department, 6333 Ridge Road, Port Richey, FL 34668. Unincorporated Areas of Pasco County ...... Pasco County Building Construction Services, 8731 Citizens Drive, Suite 230, New Port Richey, FL 34654.

Pinellas County, Florida and Incorporated Areas Project: 13–04–3188S Preliminary Date: June 29, 2018

City of Belleair Beach ...... City Hall, 444 Causeway Boulevard, Belleair Beach, FL 33786. City of Belleair Bluffs ...... City Hall, 2747 Sunset Boulevard, Belleair Bluffs, FL 33770. City of Clearwater ...... Municipal Services Building, Engineering Department, 100 South Myrtle Avenue, Suite 220, Clearwater, FL 33756. City of Dunedin ...... Technology Services Building, 737 Louden Avenue, Dunedin, FL 34698. City of Gulfport ...... City Hall, Building Department, 2401 53rd Street South, Gulfport, FL 33707. City of Indian Rocks Beach ...... City Hall, 1507 Bay Palm Boulevard, Indian Rocks Beach, FL 33785. City of Largo ...... City Hall, 201 Highland Avenue North, Largo, FL 33770. City of Madeira Beach ...... Building Department, 300 Municipal Drive, Madeira Beach, FL 33708. City of Oldsmar ...... City Hall, Planning and Redevelopment Department, 100 State Street West, Oldsmar, FL 34677. City of Pinellas Park ...... Planning and Development Services, 6051 78th Avenue North, Pinellas Park, FL 33781.

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Community Community map repository address

City of Safety Harbor ...... Building Official’s Department, 750 Main Street, Safety Harbor, FL 34695. City of Seminole ...... City Hall, Community Development Department, 9199 113th Street, Seminole, FL 33772. City of South Pasadena ...... Building Department, 6940 Hibiscus Avenue South, South Pasadena, FL 33707. City of St. Pete Beach ...... City Hall, Building Department, 155 Corey Avenue, St. Pete Beach, FL 33706. City of St. Petersburg ...... Municipal Services Center, 1 4th Street North, St. Petersburg, FL 33701. City of Tarpon Springs ...... Building Department, 324 East Pine Street, Tarpon Springs, FL 34689. City of Treasure Island ...... City Hall, Community Improvement Department, 120 108th Avenue, Treasure Island, FL 33706. Town of Belleair ...... Town Hall, 901 Ponce de Leon Boulevard, Belleair, FL 33756. Town of Belleair Shore ...... City Clerk’s Office, 1200 Gulf Boulevard, Belleair Shore, FL 33786. Town of Indian Shores ...... Building Department, 19305 Gulf Boulevard, Indian Shores, FL 33785. Town of Kenneth City ...... Town Hall, 6000 54th Avenue North, Kenneth City, FL 33709. Town of North Redington Beach ...... Town Hall, 190 173rd Avenue East, North Redington Beach, FL 33708. Town of Redington Beach ...... Redington Beach Building Department, 18001 Gulf Boulevard, Redington Shores, FL 33708. Town of Redington Shores ...... Town Hall, Building Department, 17425 Gulf Boulevard, Redington Shores, FL 33708. Unincorporated Areas of Pinellas County ...... Pinellas County Building Department, 440 Court Street, Clearwater, FL 33756.

Fulton County, Georgia and Incorporated Areas Project: 13–04–8403S Preliminary Date: June 15, 2017

City of Roswell ...... City Hall, 38 Hill Street, Suite 235, Roswell, GA 30075.

Allegany County, Maryland and Incorporated Areas Project: 09–03–0015S Preliminary Date: December 11, 2018

Town of Luke ...... City Building, 510 Grant Street, Luke, MD 21540. Unincorporated Areas of Allegany County ...... Allegany County Office Building, 701 Kelly Road, Cumberland, MD 21502.

Cheatham County, Tennessee and Incorporated Areas Project: 13–04–6204S and 13–04–1482S Preliminary Date: June 29, 2018

Town of Ashland City ...... City Hall, 101 Court Street, Ashland City, TN 37015. Town of Pleasant View ...... City Hall, 1008 Civic Court, Pleasant View, TN 37146. Unincorporated Areas of Cheatham County ...... Cheatham County Building and Codes Department, 111 Frey Street, Ashland City, TN 37015.

Coffee County, Tennessee and Incorporated Areas Project: 18–04–0023S Preliminary Date: June 29, 2018

City of Manchester ...... City Hall, Health and Codes Department, 200 West Fort Street, Man- chester, TN 37355. Unincorporated Areas of Coffee County ...... Coffee County Administration Plaza, Zoning and Codes Department, 1329 McArthur Street, Suite 2, Manchester, TN 37355.

Dickson County, Tennessee and Incorporated Areas Project: 13–04–1482S Preliminary Date: June 29, 2018

Town of Charlotte ...... City Hall, 22 Court Square, Charlotte, TN 37036. Town of Slayden ...... Mayor’s Personal Residence, 701 Schmittou Street, Slayden, TN 37165. Unincorporated Areas of Dickson County ...... Dickson County Courthouse, 4 Court Square, Charlotte, TN 37036.

Houston County, Tennessee and Incorporated Areas Project: 13–04–1482S Preliminary Date: June 29, 2018

City of Erin ...... City Hall, 15 Hill Street, Erin, TN 37061. City of Tennessee Ridge ...... Houston County Property Assessor, 4725 East Main Street, Room 105, Erin, TN 37061. Unincorporated Areas of Houston County ...... Houston County Courthouse, 4725 East Main Street, Erin, TN 37061.

Montgomery County, Tennessee and Incorporated Areas Project: 13–04–1482S Preliminary Date: June 29, 2018

City of Clarksville ...... Regional Planning Commission, 329 Main Street, Clarksville, TN 37040.

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Community Community map repository address

Unincorporated Areas of Montgomery County ...... Montgomery County Building and Codes Department, 350 Pageant Lane, Suite 309, Clarksville, TN 37040.

Robertson County, Tennessee and Incorporated Areas Project: 13–04–6204S Preliminary Date: June 29, 2018

Town of Coopertown ...... Coopertown City Hall, 2525 Burgess Gower Road, Springfield, TN 37172. Unincorporated Areas of Robertson County ...... Robertson County Planning and Zoning Building, 527 South Brown Street, Springfield, TN 37172.

Stewart County, Tennessee and Incorporated Areas Project: 13–04–1482S Preliminary Date: June 29, 2018

Town of Cumberland City ...... City Hall, 121 Main Street, Cumberland City, TN 37050. Town of Dover ...... City Hall, 625 Donelson Parkway, Dover, TN 37058. Unincorporated Areas of Stewart County Stewart County Mayor’s Office, 226 Lakeview Drive, Dover, TN 37058.

Sumner County, Tennessee and Incorporated Areas Project: 13–04–6204S Preliminary Date: June 29, 2018

City of Goodlettsville...... Planning and Zoning Department, 117 Memorial Drive, Suite B, Goodlettsville, TN 37072. City of Hendersonville ...... City Hall, 101 Maple Drive North, Hendersonville, TN 37075. City of Millersville ...... City Hall, 1246 Louisville Highway, Millersville, TN 37072. Unincorporated Areas of Sumner County ...... Sumner County Building and Codes Department, 355 North Belvedere Drive, Room 208, Gallatin, TN 37066.

Williamson County, Tennessee and Incorporated Areas Project: 13–04–6204S Preliminary Date: June 29, 2018

City of Brentwood ...... City Hall, 5211 Maryland Way, Brentwood, TN 37027. Town of Nolensville ...... Town Hall, 7218 Nolensville Road, Nolensville, TN 37135. Unincorporated Areas of Williamson County ...... Williamson County Engineering Department, 1320 West Main Street, Suite 400, Franklin, TN 37064.

City of Radford, Virginia (Independent City) Project: 18–03–0015S Preliminary Date: September 28, 2018

City of Radford ...... City Office, 10 Robertson Street, Radford, VA 24141.

[FR Doc. 2019–03375 Filed 2–26–19; 8:45 am] The FIRM and FIS report are the basis at https://msc.fema.gov by the date BILLING CODE 9110–12–P of the floodplain management measures indicated above. that a community is required either to FOR FURTHER INFORMATION CONTACT: Rick adopt or to show evidence of having in Sacbibit, Chief, Engineering Services DEPARTMENT OF HOMELAND effect in order to qualify or remain Branch, Federal Insurance and SECURITY qualified for participation in the Federal Mitigation Administration, FEMA, 400 Emergency Management Agency’s C Street SW, Washington, DC 20472, Federal Emergency Management (FEMA’s) National Flood Insurance (202) 646–7659, or (email) Agency Program (NFIP). In addition, the FIRM [email protected]; or visit and FIS report are used by insurance the FEMA Map Information eXchange [Docket ID FEMA–2019–0002] agents and others to calculate (FMIX) online at https:// appropriate flood insurance premium www.floodmaps.fema.gov/fhm/fmx_ Final Flood Hazard Determinations rates for buildings and the contents of main.html. those buildings. AGENCY: Federal Emergency SUPPLEMENTARY INFORMATION: The Management Agency, DHS. DATES: The date of March 21, 2019 has Federal Emergency Management Agency been established for the FIRM and, ACTION: Notice. (FEMA) makes the final determinations where applicable, the supporting FIS listed below for the new or modified SUMMARY: Flood hazard determinations, report showing the new or modified flood hazard information for each which may include additions or flood hazard information for each community listed. Notification of these modifications of Base Flood Elevations community. changes has been published in (BFEs), base flood depths, Special Flood ADDRESSES: The FIRM, and if newspapers of local circulation and 90 Hazard Area (SFHA) boundaries or zone applicable, the FIS report containing the days have elapsed since that designations, or regulatory floodways on final flood hazard information for each publication. The Deputy Associate the Flood Insurance Rate Maps (FIRMs) community is available for inspection at Administrator for Insurance and and where applicable, in the supporting the respective Community Map Mitigation has resolved any appeals Flood Insurance Study (FIS) reports Repository address listed in the tables resulting from this notification. have been made final for the below and will be available online This final notice is issued in communities listed in the table below. through the FEMA Map Service Center accordance with section 110 of the

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Flood Disaster Protection Act of 1973, new or revised FIRM and FIS report (Catalog of Federal Domestic Assistance No. 42 U.S.C. 4104, and 44 CFR part 67. available at the address cited below for 97.022, ‘‘Flood Insurance.’’) FEMA has developed criteria for each community or online through the Michael M. Grimm, floodplain management in floodprone FEMA Map Service Center at https:// areas in accordance with 44 CFR part msc.fema.gov. Assistant Administrator for Risk 60. The flood hazard determinations are Management, Department of Homeland Interested lessees and owners of real made final in the watersheds and/or Security, Federal Emergency Management property are encouraged to review the communities listed in the table below. Agency.

Community Community map repository address

Blount County, Alabama and Incorporated Areas Docket No.: FEMA–B–1749

City of Oneonta ...... City Hall, 202 3rd Avenue East, Oneonta, AL 35121. Town of Altoona ...... Town Hall, 2844 Main Street, Altoona, AL 35952. Town of Cleveland ...... Town Hall, 62732 U.S. Highway 231, Cleveland, AL 35049. Town of Highland Lake ...... Town Hall, 612 Lakeshore Drive, Highland Lake, AL 35121. Town of Locust Fork ...... Town Hall, 34 Town Hall Road, Locust Fork, AL 35097. Town of Nectar ...... Nectar Town Hall, 14795 State Highway 160, Cleveland, AL 35049. Town of Rosa ...... Rosa Town Hall, 35 Waterton Drive, Oneonta, AL 35121. Town of Snead ...... Town Hall, 87169 U.S. Highway 278, Snead, AL 35952. Town of Susan Moore ...... Susan Moore Town Hall, 39989 State Highway 75, Altoona, AL 35952. Unincorporated Areas of Blount County ...... Blount County Engineering Department, 6454 2nd Avenue West, Oneonta, AL 35121.

Etowah County, Alabama and Incorporated Areas Docket No.: FEMA–B–1749

Town of Altoona ...... Town Hall, 2844 Main Street, Altoona, AL 35952. Town of Walnut Grove ...... Town Hall, 4012 Gadsden Blountsville Road, Walnut Grove, AL 35990. Unincorporated Areas of Etowah County ...... Etowah County Engineer’s Office, 402 Tuscaloosa Avenue, Gadsden, AL 35901.

Jefferson County, Alabama and Incorporated Areas Docket No.: FEMA–B–1749

City of Adamsville ...... City Hall, 4828 Main Street, Adamsville, AL 35005. City of Birmingham ...... Department of Planning, Engineering, and Permits, 710 North 20th Street, 5th Floor, Birmingham, AL 35203. City of Clay ...... Clay City Hall, 2441 Old Springville Road, Birmingham, AL 35215. City of Fultondale ...... Business License, Permit, and Inspections Department, 1015 Old Walker Chapel Road, Fultondale, AL 35068. City of Gardendale ...... Inspections Services Department, 925 Main Street, Gardendale, AL 35071. City of Graysville ...... City Hall, 246 South Main Street, Graysville, AL 35073. City of Kimberly ...... City Hall, 9256 Stouts Road, Kimberly, AL 35091. City of Pinson ...... City Hall, 4410 Main Street, Pinson, AL 35126. City of Sumiton ...... City Hall, 416 State Street, Sumiton, AL 35148. City of Tarrant ...... City Hall, 1604 Pinson Valley Parkway, Tarrant, AL 35217. City of Warrior ...... City Hall, 215 Main Street North, Warrior, AL 35180. Town of Brookside ...... Town Hall, 2711 Municipal Lane, Brookside, AL 35036. Town of Cardiff ...... Jefferson County Land Development Office, 716 Richard Arrington Jr. Boulevard North, Room 260, Birmingham, AL 35203. Town of Maytown ...... Maytown Town Hall, 4509 Town Hall Drive, Mulga, AL 35118. Town of Morris ...... Town Hall, 8304 Stouts Road, Morris, AL 35116. Town of Mulga ...... Town Hall, 505 Mulga Loop Road, Mulga, AL 35118. Town of Sylvan Springs ...... Town Hall, 100 Rock Creek Road, Sylvan Springs, AL 35118. Town of Trafford ...... Town Hall, 9239 East Commercial Avenue, Trafford, AL 35172. Town of West Jefferson ...... West Jefferson Town Hall, 7000 West Jefferson Road, Quinton, AL 35130. Unincorporated Areas of Jefferson County ...... Jefferson County Land Development Office, 716 Richard Arrington Jr. Boulevard North, Room 260, Birmingham, AL 35203.

Marshall County, Alabama and Incorporated Areas Docket No.: FEMA–B–1749

City of Albertville ...... City Hall, 116 West Main Street, Albertville, AL 35950. City of Boaz ...... City Hall, 112 North Broad Street, Boaz, AL 35957. Town of Douglas ...... Town Hall, 55 Alabama Highway 168, Douglas, AL 35964. Unincorporated Areas of Marshall County ...... Marshall County Engineering Department, 424 Blount Avenue, Suite A337, Guntersville, AL 35976.

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Community Community map repository address

Conway County, Arkansas and Incorporated Areas Docket No.: FEMA–B–1763

City of Morrilton ...... City Hall, 119 North Division Street, Morrilton, AR 72110. City of Oppelo ...... City Hall, 8 Municipal Drive, Oppelo, AR 72110. City of Plumerville ...... City Hall, 303 West Main Street, Plumerville, AR 72127. Town of Menifee ...... Town Hall, 68 North Mustang Street, Menifee, AR 72107. Unincorporated Areas of Conway County ...... Conway County Courthouse, 117 South Moose Street, Morrilton, AR 72110.

Faulkner County, Arkansas and Incorporated Areas Docket No.: FEMA–B–1763

City of Conway ...... Street and Engineering Department, 100 East Robins Street, Conway, AR 72032. Unincorporated Areas of Faulkner County ...... Faulkner County Office of Emergency Management, 57 Acklin Gap Road, Conway, AR 72032.

Lonoke County, Arkansas and Incorporated Areas Docket No.: FEMA–B–1741

City of Cabot ...... City Hall, 101 North 2nd Street, Cabot, AR 72023. Unincorporated Areas of Lonoke County ...... Lonoke County Courthouse Annex, 210 North Center Street, Lonoke, AR 72086.

Pope County, Arkansas and Incorporated Areas Docket No.: FEMA–B–1763

City of Atkins ...... Pope County Conservation District, 420 North Hampton Avenue, Suite B, Russellville, AR 72802. Unincorporated Areas of Pope County ...... Pope County Conservation District, 420 North Hampton Avenue, Suite B, Russellville, AR 72802.

Orange County, California and Incorporated Areas Docket No.: FEMA–B–1673

City of Costa Mesa ...... City Hall, 77 Fair Drive, Costa Mesa, CA 92626. City of Dana Point ...... City Hall, 33282 Golden Lantern Street, Dana Point, CA 92629. City of Fountain Valley ...... City Hall, 10200 Slater Avenue, Fountain Valley, CA 92708. City of Huntington Beach ...... City Hall, 2000 Main Street, Huntington Beach, CA 92648. City of Irvine ...... City Hall, 1 Civic Center Plaza, Irvine, CA 92606. City of Laguna Beach ...... City Hall, 505 Forest Avenue, Laguna Beach, CA 92651. City of Laguna Niguel ...... City Hall, 30111 Crown Valley Parkway, Laguna Niguel, CA 92677. City of Newport Beach ...... City Hall, 100 Civic Center Drive, Newport Beach, CA 92660. City of San Clemente ...... City Hall, 100 Avenida Presidio, San Clemente, CA 92672. City of San Juan Capistrano ...... City Hall, 32400 Paseo Adelanto, San Juan Capistrano, CA 92675. City of Seal Beach ...... City Hall, 211 8th Street, Seal Beach, CA 90740. City of Westminster ...... City Hall, 8200 Westminster Boulevard, Westminster, CA 92683. Unincorporated Areas of Orange County ...... Orange County Flood Control Division, 300 North Flower Street, Santa Ana, CA 92703.

Dallas County, Texas and Incorporated Areas Docket No.: FEMA–B–1701

City of Dallas ...... Trinity Watershed Management, Flood Plain and Drainage Manage- ment, 320 East Jefferson Boulevard, Room 307 Dallas, TX 75203. City of Grand Prairie ...... City Development Center, 206 West Church Street, Grand Prairie, TX 75050. City of Irving ...... Capital Improvement Program Department, 825 West Irving Boulevard, Irving, TX 75060. Unincorporated Areas of Dallas County ...... Dallas County Public Works Department, 411 Elm Street, 4th Floor, Dallas, TX 75202.

Tarrant County, Texas and Incorporated Areas Docket Nos.: FEMA B–1282 and FEMA–B–1701

City of Arlington ...... City Hall, 101 West Abram Street, Arlington, TX 76010. City of Fort Worth ...... Department of Transportation and Public Works, 200 Texas Street, Fort Worth, TX 76102. City of Grand Prairie ...... Community Development Center, 206 West Church Street, Grand Prai- rie, TX 75050. City of Haltom City ...... City Hall, 5024 Broadway Avenue, Haltom City, TX 76117. City of Hurst ...... City Hall, 1505 Precinct Line Road, Hurst, TX 76054. City of North Richland Hills ...... City Hall 4301 City Point Drive, North Richland Hills, TX 76180. City of Richland Hills ...... City Hall, 3200 Diana Drive, Richland Hills, TX 76118.

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Community Community map repository address

City of Saginaw ...... City Hall, 333 West McLeroy Boulevard, Saginaw, TX 76179. Town of Edgecliff Village ...... Municipal Complex, 1605 Edgecliff Road, Edgecliff Village, TX 76134. Unincorporated Areas of Tarrant County ...... Tarrant County Transportation Department, Engineering, 100 East Weatherford Street, Suite 401, Fort Worth, TX 76196.

[FR Doc. 2019–03377 Filed 2–26–19; 8:45 am] and FIS report are used by insurance listed below for the new or modified BILLING CODE 9110–12–P agents and others to calculate flood hazard information for each appropriate flood insurance premium community listed. Notification of these rates for buildings and the contents of changes has been published in DEPARTMENT OF HOMELAND those buildings. newspapers of local circulation and 90 SECURITY DATES: The date of April 19, 2019 has days have elapsed since that been established for the FIRM and, publication. The Deputy Associate Federal Emergency Management where applicable, the supporting FIS Administrator for Insurance and Agency report showing the new or modified Mitigation has resolved any appeals [Docket ID FEMA–2019–0002] flood hazard information for each resulting from this notification. community. This final notice is issued in Final Flood Hazard Determinations ADDRESSES: The FIRM, and if accordance with section 110 of the AGENCY: Federal Emergency applicable, the FIS report containing the Flood Disaster Protection Act of 1973, Management Agency, DHS. final flood hazard information for each 42 U.S.C. 4104, and 44 CFR part 67. ACTION: Notice. community is available for inspection at FEMA has developed criteria for the respective Community Map floodplain management in floodprone SUMMARY: Flood hazard determinations, Repository address listed in the tables areas in accordance with 44 CFR part which may include additions or below and will be available online 60. modifications of Base Flood Elevations through the FEMA Map Service Center Interested lessees and owners of real (BFEs), base flood depths, Special Flood at https://msc.fema.gov by the date property are encouraged to review the Hazard Area (SFHA) boundaries or zone indicated above. new or revised FIRM and FIS report designations, or regulatory floodways on FOR FURTHER INFORMATION CONTACT: Rick available at the address cited below for the Flood Insurance Rate Maps (FIRMs) Sacbibit, Chief, Engineering Services each community or online through the and where applicable, in the supporting Branch, Federal Insurance and FEMA Map Service Center at https:// Flood Insurance Study (FIS) reports Mitigation Administration, FEMA, 400 msc.fema.gov. have been made final for the C Street SW, Washington, DC 20472, The flood hazard determinations are communities listed in the table below. made final in the watersheds and/or The FIRM and FIS report are the basis (202) 646–7659, or (email) communities listed in the table below. of the floodplain management measures [email protected]; or visit that a community is required either to the FEMA Map Information eXchange (Catalog of Federal Domestic Assistance No. (FMIX) online at https:// 97.022, ‘‘Flood Insurance.’’) adopt or to show evidence of having in _ effect in order to qualify or remain www.floodmaps.fema.gov/fhm/fmx main.html. Michael M. Grimm, qualified for participation in the Federal Assistant Administrator for Risk Emergency Management Agency’s SUPPLEMENTARY INFORMATION: The Management, Department of Homeland (FEMA’s) National Flood Insurance Federal Emergency Management Agency Security, Federal Emergency Management Program (NFIP). In addition, the FIRM (FEMA) makes the final determinations Agency.

Community Community map repository address

Baldwin County, Alabama and Incorporated Areas Docket No.: FEMA–B–1771

City of Bay Minette ...... City Hall, 301 D’Olive Street, Bay Minette, AL 36507. City of Daphne ...... City Hall, 1705 Main Street, Daphne, AL 36526. City of Fairhope ...... Building Department, 555 South Section Street, Fairhope, AL 36533. City of Foley ...... Community Development Building, 200 North Alston Street, Foley, AL 36535. City of Gulf Shores ...... Building Department, 205 Clubhouse Drive, Suite B, Gulf Shores, AL 36542. City of Orange Beach ...... Floodplain Administrator’s Office, 4101 Orange Beach Boulevard, Or- ange Beach, AL 36561. City of Robertsdale ...... City Hall, 22647 Racine Street, Robertsdale, AL 36567. City of Spanish Fort ...... Building Department, 7361 Spanish Fort Boulevard, Spanish Fort, AL 36527. Town of Elberta ...... Civic Center, 25070 Pine Street, Elberta, AL 36530. Town of Loxley ...... Town Hall, 1089 South Hickory Street, Loxley, AL 36551. Town of Magnolia Springs ...... Town Hall, 12191 Magnolia Springs Highway, Magnolia Springs, AL 36555. Town of Perdido Beach ...... Town Hall, 9212 County Road 97, Perdido Beach, AL 36530. Town of Silverhill ...... Town Hall, 15965 Silverhill Avenue, Silverhill, AL 36576. Town of Summerdale ...... Baldwin County Building Inspection Department, 201 East Section Ave- nue, Foley, AL 36535.

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Community Community map repository address

Unincorporated Areas of Baldwin County ...... Baldwin County Building Inspection Department, 201 East Section Ave- nue, Foley, AL 36535.

Sierra County, California and Incorporated Areas Docket No.: FEMA–B–1714

Unincorporated Areas of Sierra County...... Sierra County Department of Planning, 101 Courthouse Square, Downieville, CA 95936.

Caldwell County, Kentucky and Incorporated Areas Docket No.: FEMA–B–1709

City of Fredonia ...... City Hall, 312 Cassidy Avenue, Fredonia, KY 42411. City of Princeton ...... City Hall, 206 East Market Street, Princeton, KY 42445. Unincorporated Areas of Caldwell County ...... Caldwell County Courthouse, 100 East Market Street, Princeton, KY 42445.

Christian County, Kentucky and Incorporated Areas Docket No.: FEMA–B–1709

City of Hopkinsville ...... Christian County Community Development Services, 710 South Main Street, Hopkinsville, KY 42240. Unincorporated Areas of Christian County ...... Christian County Community Development Services, 710 South Main Street, Hopkinsville, KY 42240.

Trigg County, Kentucky and Incorporated Areas Docket No.: FEMA–B–1709

City of Cadiz ...... City Hall, 63 Main Street, Cadiz, KY 42211. Unincorporated Areas of Trigg County ...... Trigg County Courthouse Annex, 38 Main Street, Suite 101, Cadiz, KY 42211.

[FR Doc. 2019–03366 Filed 2–26–19; 8:45 am] premium rates for new buildings and section 206 of the Flood Disaster BILLING CODE 9110–12–P their contents. Protection Act of 1973, 42 U.S.C. 4105, DATES: Each LOMR was finalized as in and are in accordance with the National the table below. Flood Insurance Act of 1968, 42 U.S.C. DEPARTMENT OF HOMELAND ADDRESSES: Each LOMR is available for 4001 et seq., and with 44 CFR part 65. SECURITY inspection at both the respective For rating purposes, the currently Community Map Repository address effective community number is shown Federal Emergency Management listed in the table below and online and must be used for all new policies Agency through the FEMA Map Service Center and renewals. at https://msc.fema.gov. The new or modified flood hazard information is the basis for the [Docket ID FEMA–2019–0002] FOR FURTHER INFORMATION CONTACT: Rick floodplain management measures that Sacbibit, Chief, Engineering Services Changes in Flood Hazard the community is required either to Branch, Federal Insurance and Determinations adopt or to show evidence of being Mitigation Administration, FEMA, 400 already in effect in order to remain C Street SW, Washington, DC 20472, AGENCY: Federal Emergency qualified for participation in the (202) 646–7659, or (email) Management Agency, DHS. National Flood Insurance Program [email protected]; or visit ACTION: Notice. (NFIP). the FEMA Map Information eXchange This new or modified flood hazard SUMMARY: New or modified Base (FMIX) online at https:// _ information, together with the (1-percent annual chance) Flood www.floodmaps.fema.gov/fhm/fmx floodplain management criteria required Elevations (BFEs), base flood depths, main.html. by 44 CFR 60.3, are the minimum that Special Flood Hazard Area (SFHA) SUPPLEMENTARY INFORMATION: The are required. They should not be boundaries or zone designations, and/or Federal Emergency Management Agency construed to mean that the community regulatory floodways (hereinafter (FEMA) makes the final flood hazard must change any existing ordinances referred to as flood hazard determinations as shown in the LOMRs that are more stringent in their determinations) as shown on the for each community listed in the table floodplain management requirements. indicated Letter of Map Revision below. Notice of these modified flood The community may at any time enact (LOMR) for each of the communities hazard determinations has been stricter requirements of its own or listed in the table below are finalized. published in newspapers of local pursuant to policies established by other Each LOMR revises the Flood Insurance circulation and 90 days have elapsed Federal, State, or regional entities. Rate Maps (FIRMs), and in some cases since that publication. The Deputy This new or modified flood hazard the Flood Insurance Study (FIS) reports, Associate Administrator for Insurance determinations are used to meet the currently in effect for the listed and Mitigation has resolved any appeals floodplain management requirements of communities. The flood hazard resulting from this notification. the NFIP and are used to calculate the determinations modified by each LOMR The modified flood hazard appropriate flood insurance premium will be used to calculate flood insurance determinations are made pursuant to rates for new buildings, and for the

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contents in those buildings. The community or online through the FEMA (Catalog of Federal Domestic Assistance No. changes in flood hazard determinations Map Service Center at https:// 97.022, ‘‘Flood Insurance.’’) are in accordance with 44 CFR 65.4. msc.fema.gov. Michael M. Grimm, Interested lessees and owners of real Assistant Administrator for Risk property are encouraged to review the Management, Department of Homeland final flood hazard information available Security, Federal Emergency Management at the address cited below for each Agency.

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

Arizona: Maricopa City of Chandler The Honorable Jay Tibshraeny, Mayor, Municipal Utilities Department, Nov. 30, 2018 ...... 040040 (FEMA Dock- (18–09–0796P). City of Chandler, City Hall, 175 South Administration, 975 East et No.: B– Arizona Avenue, Chandler, AZ 85225. Armstrong Way, Building L, 1850). Chandler, AZ 85286. Maricopa City of Scottsdale The Honorable W.J. ‘‘Jim’’ Lane, Mayor, Planning Records, 7447 East Dec. 7, 2018 ...... 045012 (FEMA Dock- (18–09–0983P). City of Scottsdale, City Hall, 3939 North Indian School Road, Suite et No.: B– Drinkwater Boulevard, Scottsdale, AZ 100, Scottsdale, AZ 85251. 1850). 85251. Maricopa Unincorporated The Honorable Steve Chucri, Chairman, Flood Control District of Mari- Sep. 28, 2018 ...... 040037 (FEMA Dock- Areas of Maricopa Board of Supervisors, Maricopa Coun- copa County, 2801 West Du- et No.: B– County (17–09– ty, 301 West Jefferson Street, 10th rango Street, Phoenix, AZ 1839). 2756P). Floor, Phoenix, AZ 85003. 85009. Mohave (FEMA Town of Colorado The Honorable Joseph Allred, Mayor, Town Hall, 25 South Central Nov. 2, 2018 ...... 040059 Docket No.: City (18–09– Town of Colorado City, P.O. Box 70, Street, Colorado City, AZ B–1844). 1337X). Colorado City, AZ 86021. 86401. Mohave (FEMA Unincorporated The Honorable Gary Watson, Chairman, Mohave County Administration Nov. 2, 2018 ...... 040058 Docket No.: Areas of Mohave Board of Supervisors, Mohave County, Building, 700 West Beale B–1844). County (18–09– 700 West Beale Street, Kingman, AZ Street, Kingman, AZ 86402. 1337X). 86402. California: Orange (FEMA City of Fullerton (17– The Honorable Doug Chaffee, Mayor, City Hall, 303 West Common- Nov. 30, 2018 ...... 060219 Docket No.: 09–2449P). City of Fullerton, 303 West Common- wealth Avenue, Fullerton, CA B–1850). wealth Avenue, Fullerton, CA 92832. 92832. Orange (FEMA City of Fullerton (17– The Honorable Doug Chaffee, Mayor, City Hall, 303 West Common- Nov. 23, 2018 ...... 060219 Docket No.: 09–2450P). City of Fullerton, 303 West Common- wealth Avenue, Fullerton, CA B–1850). wealth Avenue, Fullerton, CA 92832. 92832. Orange (FEMA City of Irvine (18– The Honorable Donald P. Wagner, City Hall, 1 Civic Center Plaza, Oct. 5, 2018 ...... 060222 Docket No.: 09–0287P). Mayor, City of Irvine, 1 Civic Center Irvine, CA 92606. B–1839). Plaza, Irvine, CA 92606. Riverside City of Riverside The Honorable Rusty Bailey, Mayor, City Public Works Department, Oct. 22, 2018 ...... 060260 (FEMA Dock- (18–09–0497P). of Riverside, 3900 Main Street, River- 3900 Main Street, 4th Floor, et No.: B– side, CA 92522. Riverside, CA 92522. 1844). Riverside Unincorporated The Honorable Chuck Washington, Chair- Riverside County Flood Control Oct. 22, 2018 ...... 060245 (FEMA Dock- Areas of Riverside man, Board of Supervisors, Riverside and Water Conservation Dis- et No.: B– County (18–09– County, 4080 Lemon Street, 5th Floor, trict, 1995 Market Street, Riv- 1844). 0497P). Riverside, CA 92501. erside, CA 92501. Santa Clara Town of Los Altos The Honorable John Radford, Mayor, Town Hall, 26379 Fremont Oct. 9, 2018 ...... 060342 (FEMA Dock- Hills (17–09– Town of Los Altos Hills, 26379 Fremont Road, Los Altos Hills, CA et No.: B– 0578P). Road, Los Altos Hills, CA 94022. 94022. 1839). Solano (FEMA City of Fairfield (18– The Honorable Harry T. Price, Mayor, Public Works Department, En- Nov. 20, 2018 ...... 060370 Docket No.: 09–0734P). City of Fairfield, City Hall, 1000 Web- gineering Division, 1000 B–1846). ster Street, Fairfield, CA 94533. Webster Street, Fairfield, CA 94533. Solano (FEMA Unincorporated The Honorable Jim Spering, Chairman, Solano County Public Works Nov. 20, 2018 ...... 060631 Docket No.: Areas of Solano Board of Supervisors, Solano County, Department, 675 Texas B–1846). County (18–09– 675 Texas Street, Suite 6500, Fairfield, Street, Suite 5500, Fairfield, 0734P). CA 94533. CA 94533. Ventura (FEMA City of Simi Valley The Honorable Bob Huber, Mayor, City of City Hall, 2929 Tapo Canyon Sep. 27, 2018 ...... 060421 Docket No.: (18–09–0442P). Simi Valley, 2929 Tapo Canyon Road, Road, Simi Valley, CA B–1839). Simi Valley, CA 93063. 93063. Florida: Bay (FEMA Unincorporated Mr. Robert Majka, Jr., County Manager, Bay County Planning and Zon- Nov. 28, 2018 ...... 120004 Docket No.: Areas of Bay Bay County, 840 West 11th Street, ing, 707 Jenks Avenue, Suite B–1850). County (18–04– Panama City, FL 32401. B, Panama City, FL 32401. 2878P). Duval (FEMA City of Jacksonville The Honorable Lenny Curry, Mayor, City City Hall, 117 West Duval Sep. 21, 2018 ...... 120077 Docket No.: (18–04–0586P). of Jacksonville, 117 West Duval Street, Street, Jacksonville, FL B–1839). Suite 400, Jacksonville, FL 32202. 32202. St. Johns Unincorporated The Honorable Henry Dean, Chairman, St. Johns County Administra- Oct. 4, 2018 ...... 125147 (FEMA Dock- Areas of St. Johns St. Johns County Board of Commis- tion Building, 4020 Lewis et No.: B– County (18–04– sioners, 500 San Sebastian View, St. Speedway, St. Augustine, FL 1839). 0875P). Augustine, FL 32084. 32084. St. Johns Unincorporated The Honorable Henry Dean, Chairman, St. Johns County Administra- Oct. 5, 2018 ...... 125147 (FEMA Dock- Areas of St. Johns St. Johns County Board of Commis- tion Building, 4020 Lewis et No.: B– County (18–04– sioners, 500 San Sebastian View, St. Speedway, St. Augustine, FL 1839). 2412P). Augustine, FL 32084. 32084. Hawaii: Honolulu City and County of The Honorable Kirk Caldwell, Mayor, City Department of Planning and Oct. 30, 2018 ...... 150001 (FEMA Docket Honolulu (18–09– and County of Honolulu, 530 South Permitting, 650 South King No.: B–1844). 1196P). King Street, Room 300, Honolulu, HI Street, Honolulu, HI 96813. 96813.

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

Idaho: Ada (FEMA City of Meridian (18– The Honorable Tammy de Weerd, Mayor, Public Works Department, 33 Nov. 2, 2018 ...... 160180 Docket No.: 10–0001P). City of Meridian City Hall, 33 East East Broadway Avenue, B–1846). Broadway Avenue, Suite 300, Meridian, Suite 200, Meridian, ID ID 83642. 83642. Ada (FEMA Unincorporated The Honorable David L. Case, Chairman, Ada County Courthouse, 200 Nov. 2, 2018 ...... 160001 Docket No.: Areas of Ada Ada County Board of Commissioners, West Front Street, Boise, ID B–1846). County (18–10– 200 West Front Street, 3rd Floor, 83702. 0001P). Boise, ID 83702. Illinois: Cook (FEMA City of Chicago (17– The Honorable Rahm Emanuel, Mayor, Department of Buildings, Dec. 7, 2018 ...... 170074 Docket No.: 05–6422P). City of Chicago, 121 North LaSalle Stormwater Management, B–1850). Street, Room 406, Chicago, IL 60602. 121 North LaSalle Street, Room 906, Chicago, IL 60602. Cook (FEMA Village of Flossmoor The Honorable Paul Braun, Mayor, Vil- Public Works Service Center, Oct. 26, 2018 ...... 170091 Docket No.: (18–05–2185P). lage of Flossmoor, 2800 Flossmoor 1700 Central Park Avenue, B–1844). Road, Flossmoor, IL 60422. Flossmoor, IL 60422. Cook (FEMA Village of Franklin The Honorable Barrett F. Pedersen, Vil- Village Hall, 9500 Belmont Av- Dec. 7, 2018 ...... 170094 Docket No.: Park (17–05– lage President, Village of Franklin Park, enue, Franklin Park, IL B–1850). 6422P). 9500 Belmont Avenue, Franklin Park, 60131. IL 60131. Cook (FEMA Village of The Honorable Richard Hofeld, Mayor, Public Works, 17755 South Oct. 26, 2018 ...... 170109 Docket No.: Homewood (18– Village of Homewood, 2020 Chestnut Ashland Avenue, B–1844). 05–2185P). Road, Homewood, IL 60430. Homewood, IL 60430. Cook (FEMA Village of Schiller The Honorable Nick Caiafa, Mayor, Vil- Village Hall, 9526 West Irving Dec. 7, 2018 ...... 170159 Docket No.: Park (17–05– lage of Schiller Park, 9526 West Irving Park Road, Schiller Park, IL B–1850). 6422P). Park Road, Schiller Park, IL 60176. 60176. Peoria (FEMA City of Peoria (18– The Honorable Jim Ardis, Mayor, City of Public Works Department, Nov. 30, 2018 ...... 170536 Docket No.: 05–3106P). Peoria, 419 Fulton Street, Suite 401, 3505 North Dries Lane, Peo- B–1850). Peoria, IL 61602. ria, IL 61604. Indiana: Lake (FEMA City of Hammond The Honorable Thomas M. McDermott, City Hall, 5925 Calumet Ave- Nov. 14, 2018 ...... 180134 Docket No.: (18–05–0313P). Jr., Mayor, City of Hammond, City Hall, nue, Hammond, IN 46320. B–1846). 2nd Floor, 5925 Calumet Avenue, Hammond, IN 46320. Lake (FEMA Town of Munster President, Lee Ann Mellon, Town of Mun- Town Hall, 1005 Ridge Road, Nov. 14, 2018 ...... 180139 Docket No.: (18–05–0313P). ster, 1005 Ridge Road, Munster, IN Munster, IN 46321. B–1846). 46321. Iowa: Black Hawk City of Waterloo The Honorable Quentin M. Hart, Mayor, City Hall, 715 Mulberry Street, Nov. 28, 2018 ...... 190025 (FEMA Dock- (18–07–0911P). City of Waterloo, City Hall, 715 Mul- Waterloo, IA 50703. et No.: B– berry Street, Waterloo, IA 50703. 1850). Polk (FEMA City of West Des The Honorable Steven K. Gaer, Mayor, City Hall, 4200 Mills Civic Park- Dec. 7, 2018 ...... 190231 Docket No.: Moines (18–07– City of West, Des Moines, City Hall, way, West Des Moines, IA B–1850). 0853P). P.O. Box 65320, West Des Moines, IA 50265. 50265. Kansas: Johnson City of Olathe (18– The Honorable Michael Copeland, Mayor, City Hall, Planning Office, 100 Oct. 26, 2018 ...... 200173 (FEMA Docket 07–0607P). City of Olathe, 100 East Santa Fe East Santa Fe Street, 3rd No.: B–1846). Street, Olathe, KS 66061. Floor, Olathe, KS 66061. Massachusetts: Mid- City of Melrose (18– The Honorable Gail Infurna, Mayor, City City Hall, 562 Main Street, Mel- Dec. 3, 2018 ...... 250206 dlesex (FEMA 01–0626P). of Melrose, City Hall, 562 Main Street, rose, MA 02176. Docket No.: B– Melrose, MA 02176. 1850). Minnesota: Olmsted City of Rochester The Honorable Ardell F. Brede, Mayor, City Hall, 201 4th Street South- Oct. 18, 2018 ...... 275246 (FEMA Docket (18–05–0869P). City of Rochester, City Hall, 201 4th east, Rochester, MN 55904. No.: B–1844). Street Southeast, Room 281, Roch- ester, MN 55904. Missouri: Scott City of Scott City The Honorable Ron Cummins, Mayor, City Hall, 215 Chester Avenue, Oct. 3, 2018 ...... 290414 (FEMA Docket (18–07–0675P). City of Scott City, 215 Chester Avenue, Scott City, MO 63780. No.: B–1839). Scott City, MO 63780. Nebraska: Wash- City of Blair (18–07– The Honorable James Realph, Mayor, City Hall, 218 South 16th Nov. 26, 2018 ...... 310228 ington (FEMA 0575P). City of Blair, 2532 College Drive, Blair, Street, Blair, NE 68008. Docket No.: B– NE 68008. 1850). Nevada: Clark (FEMA City of Las Vegas The Honorable Carolyn G. Goodman, Public Works Department, 400 Oct. 5, 2018 ...... 325276 Docket No.: (18–09–1058P). Mayor, City of Las Vegas, City Hall, Stewart Avenue, 4th Floor, B–1839). 495 South Main Street, Las Vegas, NV Las Vegas, NV 89101. 89101. Clark (FEMA Unincorporated The Honorable Steve Sisolak, Chairman, Clark County, Office of the Di- Oct. 18, 2018 ...... 320003 Docket No.: Areas of Clark Board of Commissioners, Clark County, rector of Public Works, 500 B–1844). County (18–09– 500 South Grand Central Parkway, 6th South Grand Central Park- 0773P). Floor, Las Vegas, NV 89106. way, Las Vegas, NV 89155. Washoe (FEMA City of Sparks (18– The Honorable Geno Martini, Mayor, City City Hall, 431 Prater Way, Nov. 13, 2018 ...... 320021 Docket No.: 09–0662P). of Sparks, P.O. Box 857, Sparks, NV Sparks, NV 89431. B–1846). 89432. Ohio:

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

Fairfield (FEMA City of Lancaster The Honorable David S. Smith, Mayor, Municipal Building, 121 East Nov. 20, 2018 ...... 390161 Docket No.: (18–05–0226P). City of Lancaster, 104 East Main Chestnut Street, Suite 100, B–1850). Street, Room 101, Lancaster, OH Lancaster, OH 43130. 43130. Fairfield (FEMA Unincorporated The Honorable Dave Levacy, Chairman, Fairfield County, Regional Nov. 20, 2018 ...... 390158 Docket No.: Areas of Fairfield Fairfield County Board of Commis- Planning Commission, 210 B–1850). County (18–05– sioners, 210 East Main Street, Room East Main Street, Room 104, 0226P). 301, Lancaster, OH 43130. Lancaster, OH 43130. Lucas (FEMA City of Toledo (18– The Honorable Wade Kapszukiewicz, Department of Inspections, 1 Nov. 30, 2018 ...... 395373 Docket No.: 05–2876P). Mayor, City of Toledo, 1 Government Government Center, Suite B–1850). Center, 640 Jackson Street, Suite 1600, Toledo, OH 43604. 2200, Toledo, OH 43604. Oregon: Clatsop (FEMA City of Seaside (18– The Honorable Jay Barber, Mayor, City of City Hall, 989 Broadway, Sea- Sep. 24, 2018 ...... 410032 Docket No.: 10–0563P). Seaside, City Hall, 989 Broadway, Sea- side, OR 27138. B–1839). side, OR 97138. Clatsop (FEMA Unincorporated Mr. Scott Lee, Chair, Clatsop County Clatsop County, County Gov- Sep. 24, 2018 ...... 410027 Docket No.: Areas of Clatsop Board of Commissioners, County Gov- ernment Offices, 800 Ex- B–1839). County (18–10– ernment Offices, 800 Exchange Street, change Street, Suite 410, 0563P). Suite 410, Astoria, OR 97103. Astoria, OR 97103. Multnomah City of Portland (18– The Honorable Ted Wheeler, Mayor, City Bureau of Environmental Serv- Nov. 2, 2018 ...... 410183 (FEMA Dock- 10–0454P). of Portland, 1221 Southwest 4th Ave- ices, 1221 Southwest 4th Av- et No.: B– nue, Room 340, Portland, OR 97204. enue, Room 230, Portland, 1844). OR 97204. Virginia: Roanoke City of Roanoke The Honorable Sherman P. Lea, Sr., Engineering Department, Mu- Oct. 11, 2018 ...... 510130 (FEMA Docket (18–03–0502P). Mayor, City of Roanoke, 215 Church nicipal Building, 215 Church No.: B–1844). Avenue Southwest, Room 456, Roa- Avenue, Roanoke, VA noke, VA 24011. 24011. Wisconsin: Dane, City of Verona (18– The Honorable Luke Diaz, Mayor, City of City Hall, 111 Lincoln Street, Oct. 5, 2018 ...... 550092 FEMA Docket No.: 05–0637P). Verona, Verona City Center, 111 Lin- Verona, WI 53593. B–1844). coln Street, Verona, WI 53593.

[FR Doc. 2019–03373 Filed 2–26–19; 8:45 am] and FIS report are used by insurance listed below for the new or modified BILLING CODE 9110–12–P agents and others to calculate flood hazard information for each appropriate flood insurance premium community listed. Notification of these rates for buildings and the contents of changes has been published in DEPARTMENT OF HOMELAND those buildings. newspapers of local circulation and 90 SECURITY DATES: The date of May 16, 2019 has days have elapsed since that been established for the FIRM and, publication. The Deputy Associate Federal Emergency Management where applicable, the supporting FIS Administrator for Insurance and Agency report showing the new or modified Mitigation has resolved any appeals [Docket ID FEMA–2019–0002] flood hazard information for each resulting from this notification. community. This final notice is issued in Final Flood Hazard Determinations ADDRESSES: The FIRM, and if accordance with section 110 of the AGENCY: Federal Emergency applicable, the FIS report containing the Flood Disaster Protection Act of 1973, Management Agency, DHS. final flood hazard information for each 42 U.S.C. 4104, and 44 CFR part 67. ACTION: Notice. community is available for inspection at FEMA has developed criteria for the respective Community Map floodplain management in floodprone SUMMARY: Flood hazard determinations, Repository address listed in the tables areas in accordance with 44 CFR part which may include additions or below and will be available online 60. modifications of Base Flood Elevations through the FEMA Map Service Center Interested lessees and owners of real (BFEs), base flood depths, Special Flood at https://msc.fema.gov by the date property are encouraged to review the Hazard Area (SFHA) boundaries or zone indicated above. new or revised FIRM and FIS report designations, or regulatory floodways on FOR FURTHER INFORMATION CONTACT: Rick available at the address cited below for the Flood Insurance Rate Maps (FIRMs) Sacbibit, Chief, Engineering Services each community or online through the and where applicable, in the supporting Branch, Federal Insurance and FEMA Map Service Center at https:// Flood Insurance Study (FIS) reports Mitigation Administration, FEMA, 400 msc.fema.gov. have been made final for the C Street SW, Washington, DC 20472, The flood hazard determinations are communities listed in the table below. made final in the watersheds and/or The FIRM and FIS report are the basis (202) 646–7659, or (email) communities listed in the table below. of the floodplain management measures [email protected]; or visit that a community is required either to the FEMA Map Information eXchange (Catalog of Federal Domestic Assistance No. (FMIX) online at https:// 97.022, ‘‘Flood Insurance.’’) adopt or to show evidence of having in _ effect in order to qualify or remain www.floodmaps.fema.gov/fhm/fmx main.html. Michael M. Grimm, qualified for participation in the Federal Assistant Administrator for Risk Emergency Management Agency’s SUPPLEMENTARY INFORMATION: The Management, Department of Homeland (FEMA’s) National Flood Insurance Federal Emergency Management Agency Security, Federal Emergency Management Program (NFIP). In addition, the FIRM (FEMA) makes the final determinations Agency.

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Community Community map repository address

Pinal County, Arizona and Incorporated Areas Docket No.: FEMA–B–1766

City of Casa Grande ...... 510 East Florence Boulevard, Casa Grande, AZ 85122. City of Eloy ...... 626 North Main Street, Eloy, AZ 85131. Unincorporated Areas of Pinal County ...... Pinal County Engineering Department, 31 North Pinal Street, Building F, Florence, AZ 85132.

Cass County, Illinois and Incorporated Areas Docket No.: FEMA–B–1764

City of Beardstown ...... City Hall, 105 West Third Street, Beardstown, Illinois 62618. Unincorporated Areas of Cass County ...... Cass County Courthouse, 100 East Springfield Street, Virginia, Illinois 62691.

Calcasieu Parish, Louisiana and Incorporated Areas Docket No.: FEMA–B–1642

Unincorporated Areas of Calcasieu Parish ...... Planning and Development Department, 901 Lakeshore Drive, Lake Charles, LA 70601.

Charlevoix County, Michigan (All Jurisdictions) Docket Nos.: FEMA–B–1266 & FEMA–B–1773

City of Boyne City ...... City Hall, 319 North Lake Street, Boyne City, MI 49712. City of Charlevoix ...... City Hall, 210 State Street, Charlevoix, MI 49720. City of East Jordan ...... City Hall, 201 Main Street, East Jordan, MI 49727. Little Traverse Bay Bands of Odawa Indians ...... Little Traverse Bay Bands of Odawa Indians, Government Center, 7500 Odawa Circle, Harbor Springs, MI 49740. Township of Bay ...... Bay Township Hall, 05045 Boyne City Road, Boyne City, MI 49712. Township of Boyne Valley ...... Boyne Valley Township Hall, 2489 Railroad Street, Boyne Falls, MI 49713. Township of Charlevoix ...... Charlevoix Township Hall, 12491 Waller Road, Charlevoix, MI 49720. Township of Evangeline ...... Evangeline Township Hall, 02746 Wildwood Harbor Road, Boyne City, MI 49712. Township of Eveline ...... Eveline Township Hall, 08525 Ferry Road, East Jordan, MI 49727. Township of Hayes ...... Hayes Township Hall, 09195 Old U.S. Highway 31 North, Charlevoix, MI 49720. Township of Marion ...... Township of Marion, Charlevoix Public Library, 220 West Clinton Street, Charlevoix, MI 49720. Township of Melrose ...... Melrose Township Hall, 4289 Michigan 75 Highway North, Walloon Lake, MI 49796. Township of Norwood ...... Norwood Township Hall, 19759 Lake Street, Charlevoix, MI 49720. Township of Peaine ...... Peaine Township Hall, 36825 Kings Highway, Beaver Island, MI 49782. Township of South Arm ...... South Arm Township Hall, 2811 South Michigan 66, East Jordan, MI 49727. Township of St. James ...... Township of St. James Government Center, 37830 Kings Highway, Beaver Island, MI 49782.

Hughes County, Oklahoma and Incorporated Areas Docket No.: FEMA–B–1769

City of Holdenville ...... City Hall, 100 North Creek Street, Holdenville, OK 74848. City of Wetumka ...... City Hall, 202 North Main Street, Wetumka, OK 74883. Town of Allen ...... Town Hall, 216 East Broadway Street, Allen, OK 74825. Town of Atwood ...... Hughes County Emergency Management Director’s Office, 200 North Broadway Street, Holdenville, OK 74848. Town of Calvin ...... Hughes County Emergency Management Director’s Office, 200 North Broadway Street, Holdenville, OK 74848. Town of Dustin ...... Town Hall, 117 North Broadway Avenue, Dustin, OK 74839. Town of Horntown ...... Horntown Fire Department, 3319 Highway 75, Holdenville, OK 74848. Town of Lamar ...... Hughes County Emergency Management Director’s Office, 200 North Broadway Street, Holdenville, OK 74848. Town of Spaulding ...... Hughes County Emergency Management Director’s Office, 200 North Broadway Street, Holdenville, OK 74848. Town of Stuart ...... Town Hall, 834 Roosevelt Avenue, Stuart, OK 74570. Unincorporated Areas of Hughes County ...... Hughes County Emergency Management Director’s Office, 200 North Broadway Street, Holdenville, OK 74848.

Lincoln County, Oklahoma and Incorporated Areas Docket No.: FEMA–B–1638

Kickapoo Tribe of Oklahoma ...... Kickapoo Tribe of Oklahoma, Secondary Administration Building, 400 North Highway 102, McLoud, OK 74851.

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Community Community map repository address

Unincorporated Areas of Lincoln County ...... Lincoln County Courthouse, 811 Manvel Avenue, Suite 4, Chandler, OK 74834.

McIntosh County, Oklahoma and Incorporated Areas Docket No.: FEMA–B–1769

City of Checotah ...... City Hall, 414 West Gentry Avenue, Checotah, OK 74426. City of Eufaula ...... City Hall, 64 Memorial Drive, Eufaula, OK 74432. Unincorporated Areas of McIntosh County ...... McIntosh County Clerk’s Office, 110 North 1st Street, Eufaula, OK 74432.

Pottawatomie County, Oklahoma and Incorporated Areas Docket No.: FEMA–B–1769

City of McLoud ...... City Hall, 402 East Broadway, McLoud, OK 74851. City of Shawnee ...... City Hall Annex Building, 222 North Broadway Avenue, Shawnee, OK 74801. City of Tecumseh ...... City Hall, 114 North Broadway Street, Tecumseh, OK 74873. Town of Bethel Acres ...... Bethel Acres Town Hall, 18101 Bethel Road, Shawnee, OK 74801. Town of Earlsboro ...... Town Hall, 110 South Lamar Avenue, Earlsboro, OK 74840. Town of Johnson ...... Pottawatomie County Courthouse, 325 North Broadway Street, Shaw- nee, OK 74801. Absentee-Shawnee Tribe of Indians of Oklahoma ...... Absentee-Shawnee Tribal Complex, 2025 South Gordon Cooper Drive, Shawnee, OK 74801. Citizen Potawatomi Nation ...... Citizen Potawatomi Nation Transportation Building, 405 Transportation Drive, Shawnee, OK 74801. Kickapoo Tribe of Oklahoma ...... Kickapoo Tribe of Oklahoma Secondary Administration Building, 400 North Highway 102, McLoud, OK 74851. Sac and Fox Nation ...... Sac and Fox Nation Administration Building, 920883 South Highway 99, Building A, Stroud, OK 74079. Unincorporated Areas of Pottawatomie County ...... Pottawatomie County Courthouse, 325 North Broadway Street, Shaw- nee, OK 74801.

Waller County, Texas and Incorporated Areas Docket No.: FEMA–B–1753

City of Hempstead ...... City Hall, 1125 Austin Street, Hempstead, TX 77445. City of Prairie View ...... City Hall, 44500 Business Highway 290, Prairie View, TX 77446. Unincorporated Areas of Waller County ...... Waller County Road and Bridge Department, 775 Business Highway 290 East, Hempstead, TX 77445.

Washington County, Texas and Incorporated Areas Docket No.: FEMA–B–1753

Unincorporated Areas of Washington County ...... Washington County Courthouse Annex, 105 West Main Street, Suite 100, Brenham, TX 77833.

[FR Doc. 2019–03367 Filed 2–26–19; 8:45 am] (SFHA) boundaries or zone number is shown in the table below and BILLING CODE 9110–12–P designations, or the regulatory floodway must be used for all new policies and (hereinafter referred to as flood hazard renewals. determinations), as shown on the Flood DATES: These flood hazard DEPARTMENT OF HOMELAND Insurance Rate Maps (FIRMs), and determinations will be finalized on the SECURITY where applicable, in the supporting dates listed in the table below and Flood Insurance Study (FIS) reports, revise the FIRM panels and FIS report Federal Emergency Management prepared by the Federal Emergency in effect prior to this determination for Agency Management Agency (FEMA) for each the listed communities. community, is appropriate because of [Docket ID FEMA–2019–0002; Internal new scientific or technical data. The From the date of the second Agency Docket No. FEMA–B–1907] FIRM, and where applicable, portions of publication of notification of these the FIS report, have been revised to changes in a newspaper of local Changes in Flood Hazard circulation, any person has 90 days in Determinations reflect these flood hazard determinations through issuance of a which to request through the community that the Deputy Associate AGENCY: Federal Emergency Letter of Map Revision (LOMR), in Administrator for Insurance and Management Agency, DHS. accordance with Federal Regulations. Mitigation reconsider the changes. The ACTION: Notice. The LOMR will be used by insurance agents and others to calculate flood hazard determination information may be changed during the 90-day SUMMARY: This notice lists communities appropriate flood insurance premium where the addition or modification of rates for new buildings and the contents period. Base Flood Elevations (BFEs), base flood of those buildings. For rating purposes, ADDRESSES: The affected communities depths, Special Flood Hazard Area the currently effective community are listed in the table below. Revised

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flood hazard information for each location and local community map existing ordinances that are more community is available for inspection at repository address where the flood stringent in their floodplain both the online location and the hazard determination information is management requirements. The respective community map repository available for inspection is provided. community may at any time enact address listed in the table below. Any request for reconsideration of stricter requirements of its own or Additionally, the current effective FIRM flood hazard determinations must be pursuant to policies established by other and FIS report for each community are submitted to the Chief Executive Officer Federal, State, or regional entities. The accessible online through the FEMA of the community as listed in the table flood hazard determinations are in Map Service Center at https:// below. accordance with 44 CFR 65.4. msc.fema.gov for comparison. The modifications are made pursuant The affected communities are listed in Submit comments and/or appeals to to section 201 of the Flood Disaster the following table. Flood hazard the Chief Executive Officer of the Protection Act of 1973, 42 U.S.C. 4105, determination information for each community as listed in the table below. and are in accordance with the National community is available for inspection at Flood Insurance Act of 1968, 42 U.S.C. FOR FURTHER INFORMATION CONTACT: Rick both the online location and the Sacbibit, Chief, Engineering Services 4001 et seq., and with 44 CFR part 65. respective community map repository The FIRM and FIS report are the basis Branch, Federal Insurance and address listed in the table below. of the floodplain management measures Mitigation Administration, FEMA, 400 Additionally, the current effective FIRM that the community is required either to C Street SW, Washington, DC 20472, and FIS report for each community are adopt or to show evidence of having in (202) 646–7659, or (email) accessible online through the FEMA effect in order to qualify or remain [email protected]; or visit Map Service Center at https:// qualified for participation in the the FEMA Map Information eXchange msc.fema.gov for comparison. National Flood Insurance Program (FMIX) online at https:// (Catalog of Federal Domestic Assistance No. _ (NFIP). www.floodmaps.fema.gov/fhm/fmx These flood hazard determinations, 97.022, ‘‘Flood Insurance.’’) main.html. together with the floodplain Michael M. Grimm, SUPPLEMENTARY INFORMATION: The management criteria required by 44 CFR Assistant Administrator for Risk specific flood hazard determinations are 60.3, are the minimum that are required. Management, Department of Homeland not described for each community in They should not be construed to mean Security, Federal Emergency Management this notice. However, the online that the community must change any Agency.

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

Arizona: Maricopa ...... City of Avondale The Honorable Kenneth Development & Engineer- https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 040038 (18–09– N. Weise, Mayor, City ing Services Depart- advanceSearch. 0518P). of Avondale, 11465 ment, 11465 West Civic West Civic Center Center Drive, Avondale, Drive, Avondale, AZ AZ 85323. 85323. Maricopa ...... Unincorporated The Honorable Steve Flood Control District of https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 040037 Areas of Mari- Chucri, Chairman, Maricopa County, 2801 advanceSearch. copa County Board of Supervisors, West Durango Street, (18–09– Maricopa County, 301 Phoenix, AZ 85009. 0518P). West Jefferson Street, 10th Floor, Phoenix, AZ 85003. Florida: St. Johns ...... Unincorporated Mr. Henry Dean, Chair- St. Johns County Admin- https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 125147 Areas of St. man, St. Johns County istration Building, 4020 advanceSearch. Johns County Board of Commis- Lewis Speedway, St. (18–04– sioners, 500 San Se- Augustine, FL 32084. 6798P). bastian View, St. Au- gustine, FL 32084. Walton ...... Unincorporated Mr. Trey Nick, Commis- Walton County Court- https://msc.fema.gov/portal/ May 2, 2019 ...... 120317 Areas of Wal- sioner, Walton County, house Annex, 47 North advanceSearch. ton County 263 Chaffin Avenue, 6th Street, DeFuniak (18–04– DeFuniak Springs, FL Springs, FL 32435. 4592P). 32433. Kansas: Douglas ...... City of Lawrence The Honorable Stuart City Hall, 6 East 6th https://msc.fema.gov/portal/ Apr. 29, 2019 ..... 200090 (18–07– Boley, Mayor, City of Street, Lawrence, KS advanceSearch. 0976P). Lawrence, P.O. Box 66044. 708, Lawrence, KS 66044. Douglas ...... Unincorporated Mr. Mike Gaughan, Doug- Douglas County Zoning & https://msc.fema.gov/portal/ Apr. 29, 2019 ..... 200087 Areas of Doug- las County Commis- Codes Department, advanceSearch. las County sioner, 1st District, 2108 West 27th Street, (18–07– County Courthouse, Suite I, Lawrence, KS 0976P). 1100 Massachusetts 66047. Street, Lawrence, KS 66044. Johnson ...... City of Shawnee The Honorable Michelle City Hall, 11110 Johnson https://msc.fema.gov/portal/ Apr. 17, 2019 ..... 200177 (18–07– Distler, Mayor, City of Drive, Shawnee, KS advanceSearch. 1702P). Shawnee, City Hall, 66203. 11110 Johnson Drive, Shawnee, KS 66203.

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

Johnson ...... City of Shawnee The Honorable Michelle City Hall, 11110 Johnson https://msc.fema.gov/portal/ Apr. 17, 2019 ..... 200177 (18–07– Distler, Mayor, City of Drive, Shawnee, KS advanceSearch. 2005P). Shawnee, City Hall, 66203. 11110 Johnson Drive, Shawnee, KS 66203. Johnson ...... City of Shawnee The Honorable Michelle City Hall, 11110 Johnson https://msc.fema.gov/portal/ Apr. 17, 2019 ..... 200177 (18–07– Distler, Mayor, City of Drive, Shawnee, KS advanceSearch. 2117P). Shawnee, City Hall, 66203. 11110 Johnson Drive, Shawnee, KS 66203. Massachusetts: Middlesex ...... City of Lowell The Honorable William City Hall, 375 Merrimack https://msc.fema.gov/portal/ May 9, 2019 ...... 250201 (18–01– Samaras, Mayor, City Street, Lowell, MA advanceSearch. 1941P). of Lowell, City Hall, 375 01852. Merrimack Street, Low- ell, MA 01852. Middlesex ...... Town of Dracut The Honorable Jesse Town Hall, 62 Arlington https://msc.fema.gov/portal/ May 9, 2019 ...... 250190 (18–01– Forcier, Chairman, Street, Dracut, MA advanceSearch. 1941P). Town of Dracut Board 01826. of Selectmen, Town Hall, 62 Arlington Street, Dracut, MA 01826. Middlesex ...... Town of The Honorable Jay J. Town Hall, 1009 Main https://msc.fema.gov/portal/ May 9, 2019 ...... 250218 Tewksbury Kelly, Chairman, Town Street, Tewksbury, MA advanceSearch. (18–01– of Tewksbury Board of 01876. 1941P). Selectmen, Town Hall, 1009 Main Street, 2nd Floor, Tewksbury, MA 01876. Nebraska: Cass .... City of Louisville The Honorable Roger City Hall, 210 Main Street, https://msc.fema.gov/portal/ May 3, 2019 ...... 310031 (18–07– Behrns, Mayor, City of Louisville, NE 68037. advanceSearch. 0041P). Louisville, P.O. Box 370, Louisville, NE 68037. Nevada: Douglas .. Unincorporated The Honorable Steve Douglas County, Commu- https://msc.fema.gov/portal/ May 3, 2019 ...... 320008 Areas of Doug- Thaler, Chairman, nity Development, 1594 advanceSearch. las County Board of Commis- Esmeralda Avenue, (18–09– sioners, Douglas Coun- Minden, NV 89423. 1883P). ty, P.O. Box 218, Minden, NV 89423. Ohio: Montgomery City of Engle- Mr. William J. Singer, De- Government Center, 333 https://msc.fema.gov/portal/ May 6, 2019 ...... 390828 wood (18–06– velopment Director City West National Road, advanceSearch. 6276P). of Englewood, 333 Englewood, OH 45322. West National Road, Englewood, OH 45322. Oregon: Marion ...... City of Salem The Honorable Chuck Public Works Department, https://msc.fema.gov/portal/ May 9, 2019 ...... 410167 (18–10– Bennett, Mayor, City of 555 Liberty Street advanceSearch. 1215P). Salem, City Hall, 555 Southeast, Room 325, Liberty Street South- Salem, OR 97301. east, Room 220, Salem, OR 97301. Marion ...... Unincorporated Ms. Janet Carlson, Chair, Marion County Depart- https://msc.fema.gov/portal/ May 9, 2019 ...... 410154 Areas of Mar- Marion County Board of ment of Planning, 3150 advanceSearch. ion County Commissioners, P.O. Lancaster Drive North- (18–10– Box 14500, Salem, OR east, Salem, OR 97305. 1215P). 97309. Washington .... City of Hillsboro The Honorable Steve City Hall, 150 East Main https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 410243 (18–10– Callaway, Mayor, City Street, Hillsboro, OR advanceSearch. 0728P). of Hillsboro, Civic Cen- 97123. ter Building, 150 East Main Street, Hillsboro, OR 97123. Washington .... Unincorporated The Honorable Roy Rog- Washington County De- https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 410238 Areas of ers, Mayor, Washington partment of Land Use advanceSearch. Washington County, 155 North 1st and Transportation, 155 County (18– Avenue, Hillsboro, OR North 1st Avenue, Suite 10–0728P). 97124. 350, Hillsboro, OR 97124. Virginia: Fairfax ..... Unincorporated The Honorable Sharon Fairfax County Commu- https://msc.fema.gov/portal/ Apr. 11, 2019 ..... 515525 Areas of Fair- Bulova, Chairman, Fair- nity Map Repository/ advanceSearch. fax County fax County Board of Stormwater Planning, (18–03– Supervisors, 12000 12000 Government 1475P). Government Center Center Parkway, Suite Parkway, Suite 552, 449, Fairfax, VA 22035. Fairfax, VA 22035. Washington:

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

Grays Harbor City of Aberdeen The Honorable Erik Lar- City Hall, 200 East Market https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 530058 (18–10– son, Mayor, City of Ab- Street, Aberdeen, WA advanceSearch. 0100P). erdeen, City Hall, 200 98520. East Market Street, Ab- erdeen, WA 98520. Grays Harbor Unincorporated Ms. Vickie Raines, Com- Grays Harbor Administra- https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 530057 Areas of Grays missioner, Grays Har- tion Building, 100 West advanceSearch. Harbor County bor County, Administra- Broadway, Suite 31, (18–10– tion Building, 100 West Montesano, WA 98563. 0100P). Broadway, Suite 1, Montesano, WA 98563. Pierce ...... City of Tacoma The Honorable Victoria Municipal Building, 747 https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 530148 (18–10– Woodards, Mayor, City Market Street, Tacoma, advanceSearch. 1374P). of Tacoma, 747 Market WA 98402. Street, 12th Floor, Ta- coma, WA 98402. Yakima ...... Unincorporated The Honorable Ron An- Yakima County Public https://msc.fema.gov/portal/ Apr. 5, 2019 ...... 530217 Areas of Yak- derson, Chairman, Services, 128 North advanceSearch. ima County Board of Yakima Coun- 2nd Street, Yakima, WA (18–10– ty Commissioners, Yak- 98901. 0191P). ima County Court- house, 128 North 2nd Street, Room 232, Yak- ima, WA 98901.

[FR Doc. 2019–03369 Filed 2–26–19; 8:45 am] the currently effective community (FMIX) online at https:// BILLING CODE 9110–12–P number is shown in the table below and www.floodmaps.fema.gov/fhm/fmx_ must be used for all new policies and main.html. renewals. SUPPLEMENTARY INFORMATION: The DEPARTMENT OF HOMELAND DATES: These flood hazard SECURITY specific flood hazard determinations are determinations will be finalized on the not described for each community in Federal Emergency Management dates listed in the table below and this notice. However, the online Agency revise the FIRM panels and FIS report location and local community map in effect prior to this determination for repository address where the flood [Docket ID FEMA–2019–0002; Internal the listed communities. hazard determination information is Agency Docket No. FEMA–B–1904] From the date of the second available for inspection is provided. publication of notification of these Changes in Flood Hazard changes in a newspaper of local Any request for reconsideration of Determinations circulation, any person has 90 days in flood hazard determinations must be which to request through the submitted to the Chief Executive Officer AGENCY: Federal Emergency of the community as listed in the table Management Agency, DHS. community that the Deputy Associate Administrator for Insurance and below. ACTION: Notice. Mitigation reconsider the changes. The The modifications are made pursuant SUMMARY: This notice lists communities flood hazard determination information to section 201 of the Flood Disaster where the addition or modification of may be changed during the 90-day Protection Act of 1973, 42 U.S.C. 4105, Base Flood Elevations (BFEs), base flood period. and are in accordance with the National Flood Insurance Act of 1968, 42 U.S.C. depths, Special Flood Hazard Area ADDRESSES: The affected communities (SFHA) boundaries or zone are listed in the table below. Revised 4001 et seq., and with 44 CFR part 65. designations, or the regulatory floodway flood hazard information for each The FIRM and FIS report are the basis (hereinafter referred to as flood hazard community is available for inspection at of the floodplain management measures determinations), as shown on the Flood both the online location and the that the community is required either to Insurance Rate Maps (FIRMs), and respective community map repository adopt or to show evidence of having in where applicable, in the supporting address listed in the table below. effect in order to qualify or remain Flood Insurance Study (FIS) reports, Additionally, the current effective FIRM qualified for participation in the prepared by the Federal Emergency and FIS report for each community are National Flood Insurance Program Management Agency (FEMA) for each accessible online through the FEMA (NFIP). community, is appropriate because of Map Service Center at https:// These flood hazard determinations, new scientific or technical data. The msc.fema.gov for comparison. together with the floodplain FIRM, and where applicable, portions of Submit comments and/or appeals to management criteria required by 44 CFR the FIS report, have been revised to the Chief Executive Officer of the 60.3, are the minimum that are required. reflect these flood hazard community as listed in the table below. They should not be construed to mean determinations through issuance of a FOR FURTHER INFORMATION CONTACT: Rick that the community must change any Letter of Map Revision (LOMR), in Sacbibit, Chief, Engineering Services existing ordinances that are more accordance with Federal Regulations. Branch, Federal Insurance and stringent in their floodplain The LOMR will be used by insurance Mitigation Administration, FEMA, 400 management requirements. The agents and others to calculate C Street SW, Washington, DC 20472, community may at any time enact appropriate flood insurance premium (202) 646–7659, or (email) stricter requirements of its own or rates for new buildings and the contents [email protected]; or visit pursuant to policies established by other of those buildings. For rating purposes, the FEMA Map Information eXchange Federal, State, or regional entities. The

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flood hazard determinations are in respective community map repository (Catalog of Federal Domestic Assistance No. accordance with 44 CFR 65.4. address listed in the table below. 97.022, ‘‘Flood Insurance.’’) The affected communities are listed in Additionally, the current effective FIRM Michael M. Grimm, the following table. Flood hazard and FIS report for each community are Assistant Administrator for Risk determination information for each accessible online through the FEMA Management, Department of Homeland community is available for inspection at Map Service Center at https:// Security, Federal Emergency Management both the online location and the msc.fema.gov for comparison. Agency.

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

Alabama: Madison ...... City of Madison The Honorable Paul Fin- Engineering Department, https://msc.fema.gov/portal/ Apr. 11, 2019 ..... 010308 (19–04– ley, Mayor, City of 100 Hughes Road, advanceSearch. 0103P). Madison, 100 Hughes Madison, AL 35758. Road, Madison, AL 35758. Montgomery ... City of Mont- The Honorable Todd Engineering Department, https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 010174 gomery (17– Strange, Mayor, City of 25 Washington Avenue, advanceSearch. 04–6774P). Montgomery, 103 North Montgomery, AL 36104. Perry Street, Mont- gomery, AL 36104. Shelby ...... City of Helena The Honorable Mark R. City Hall, 816 Highway 52 https://msc.fema.gov/portal/ Apr. 18, 2019 ..... 010193 (18–04– Hall, Mayor, City of Hel- East, Helena, AL advanceSearch. 5164P). ena, 816 Highway 52 35080. East, Helena, AL 35080. Shelby ...... City of Pelham The Honorable Gary W. City Hall, 3162 Pelham https://msc.fema.gov/portal/ Apr. 18, 2019 ..... 010294 (18–04– Waters, Mayor, City of Parkway, Pelham, AL advanceSearch. 5164P). Pelham, 3162 Pelham 35124. Parkway, Pelham, AL 35124. Colorado: Arapahoe ...... City of Aurora The Honorable Bob Public Works Department, https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 080002 (18–08– LeGare, Mayor, City of 15151 East Alameda advanceSearch. 0814P). Aurora, 15151 East Ala- Parkway, Aurora, CO meda Parkway, Aurora, 80012. CO 80012. Broomfield ...... City and County The Honorable Randy Engineering Department, https://msc.fema.gov/portal/ May 10, 2019 ..... 085073 of Broomfield Ahrens, Mayor, City 1 Descombes Drive, advanceSearch. (18–08– and County of Broom- Broomfield, CO 80020. 0957P). field, 1 Descombes Drive, Broomfield, CO 80020. El Paso ...... Unincorporated The Honorable Darryl El Paso County Building https://msc.fema.gov/portal/ Apr. 18, 2019 ..... 080059 areas El Paso Glenn, President, El Department, 2880 Inter- advanceSearch. County (18– Paso County Board of national Circle, Colo- 08–0914P). Commissioners, 200 rado Springs, CO South Cascade Ave- 80910. nue, Suite 100, Colo- rado Springs, CO 80903. El Paso ...... Unincorporated The Honorable Darryl El Paso County Building https://msc.fema.gov/portal/ Apr. 17, 2019 ..... 080059 areas El Paso Glenn, President, El Department, 2880 Inter- advanceSearch. County (18– Paso County Board of national Circle, Colo- 08–1059P). Commissioners, 200 rado Springs, CO South Cascade Ave- 80910. nue, Suite 100, Colo- rado Springs, CO 80903. Jefferson ...... City of West- The Honorable Herb Atch- City Hall, 4800 West 92nd https://msc.fema.gov/portal/ May 10, 2019 ..... 080008 minster (18– ison, Mayor, City of Avenue, Westminster, advanceSearch. 08–0957P). Westminster, 4800 CO 80031. West 92nd Avenue, Westminster, CO 80031. Jefferson ...... Unincorporated The Honorable Casey Jefferson County Depart- https://msc.fema.gov/portal/ Apr. 26, 2019 ..... 080087 areas Jeffer- Tighe, Chairman, Jef- ment of Planning and advanceSearch. son County ferson County Board of Zoning, 100 Jefferson (18–08– Commissioners, 100 County Parkway, Suite 0875P). Jefferson County Park- 3550, Golden, CO way, Suite 5550, Gold- 80419. en, CO 80419. Florida: Charlotte ...... Unincorporated The Honorable Ken Charlotte County Depart- https://msc.fema.gov/portal/ Apr. 22, 2019 ..... 120061 areas Charlotte Doherty, Chairman, ment of Community De- advanceSearch. County (18– Charlotte County Board velopment, 18500 04–6671P). of Commissioners, Murdock Circle, Port 18500 Murdock Circle, Charlotte, FL 33948. Suite 536, Port Char- lotte, FL 33948.

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

Lee ...... Unincorporated Mr. Roger Desjarlais, Lee County Building De- https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 125124 areas Lee Manager, Lee County, partment, 1500 Monroe advanceSearch. County (18– 2120 Main Street, Fort Street, Fort Myers, FL 04–7249P). Myers, FL 33901. 33901. Monroe ...... Village of The Honorable Chris Building Department, https://msc.fema.gov/portal/ Apr 19, 2019 ...... 120424 Islamorada Sante, Mayor, Village of 86800 Overseas High- advanceSearch. (18–04– Islamorada, 86800 way, Islamorada, FL 7178P). Overseas Highway, 33036. Islamorada, FL 33036. Sarasota ...... Unincorporated The Honorable Nancy Sarasota County Planning https://msc.fema.gov/portal/ May 3, 2019 ...... 125144 areas Sarasota Detert, Chair, Sarasota and Development Serv- advanceSearch. County (18– County Board of Com- ices Department, 1001 04–4837P). missioners, 1660 Ring- Sarasota Center Boule- ling Boulevard, Sara- vard, Sarasota, FL sota, FL 34236. 34240. Louisiana: Ascen- Unincorporated The Honorable Kenny Ascension Parish Public https://msc.fema.gov/portal/ May 10, 2019 ..... 220013 sion. areas Ascen- Matassa, Ascension Works Department, 615 advanceSearch. sion Parish Parish President, 615 East Worthey Road, (18–06– East Worthey Road, Gonzales, LA 70737. 3150P). Gonzales, LA 70737. Mississippi: DeSoto ...... City of Hernando The Honorable N.C. Tom Planning Department, 475 https://msc.fema.gov/portal/ Apr. 26, 2019 ..... 280292 (18–04– Ferguson, Mayor, City West Commerce Street, advanceSearch. 4824P). of Hernando, 475 West Hernando, MS 38632. Commerce Street, Hernando, MS 38632. DeSoto ...... Unincorporated The Honorable Michael DeSoto County Planning https://msc.fema.gov/portal/ Apr. 26, 2019 ..... 280050 areas DeSoto Lee, Chairman, DeSoto Commission, 365 advanceSearch. County (18– County Board of Super- Losher Street, 04–4824P). visors, 365 Losher Hernando, MS 38632. Street, Suite 300, Hernando, MS 38632. Pennsylvania: Allegheny ...... Township of Mr. Miles Truitt, Interim Planning, Engineering and https://msc.fema.gov/portal/ Apr. 12, 2019 ..... 421106 South Fayette Manager, Township of Building Department, advanceSearch. (19–03– South Fayette, 515 Mil- 515 Millers Run Road, 0150P). lers Run Road, Morgan, Morgan, PA 15064. PA 15064. Allegheny ...... Township of The Honorable Mark D. Department of Planning https://msc.fema.gov/portal/ Apr. 12, 2019 ..... 421119 Upper St. Clair Christie, President, and Community Devel- advanceSearch. (19–03– Township of Upper St. opment, 1820 0150P). Clair Board of Commis- McLaughlin Run Road, sioners, 1820 Upper St. Clair, PA McLaughlin Run Road, 15241. Upper St. Clair, PA 15241. South Carolina: City of Charles- The Honorable John J. Public Services Depart- https://msc.fema.gov/portal/ May 13, 2019 ..... 455412 Charleston. ton (18–04– Tecklenburg, Mayor, ment, 2 George Street, advanceSearch. 7585P). City of Charleston, 80 Suite 2100, Charleston, Broad Street, Charles- SC 29401. ton, SC 29401. Texas: Bexar ...... Unincorporated The Honorable Nelson W. Bexar County Public https://msc.fema.gov/portal/ Apr. 22, 2019 ..... 480035 areas Bexar Wolff, Bexar County Works Department, 233 advanceSearch. County (18– Judge, 101 West Nueva North Pecos-La Trini- 06–3287P). Street, 10th Floor, San dad Street, Suite 420, Antonio, TX 78205. San Antonio, TX 78207. Denton ...... City of Aubrey The Honorable Janet City Hall, 107 South Main https://msc.fema.gov/portal/ Apr. 29, 2019 ..... 480776 (18–06– Meyers, Mayor, City of Street, Aubrey, TX advanceSearch. 2849P). Aubrey, 107 South 76227. Main Street, Aubrey, TX 76227. Harris ...... Unincorporated The Honorable Edward Harris County Permit De- https://msc.fema.gov/portal/ May 13, 2019 ..... 480287 areas of Harris Emmett, Harris County partment, 10555 North- advanceSearch. County (18– Judge, 1001 Preston west Freeway, Suite 06–2511P). Street, Suite 911, Hous- 120, Houston, TX ton, TX 77002. 77092. Rockwall ...... City of Rockwall The Honorable Jim Pruitt, City Hall, 385 South https://msc.fema.gov/portal/ Apr. 15, 2019 ..... 480547 (18–06– Mayor, City of Goliad Street, Rockwall, advanceSearch. 1450P). Rockwall, 385 South TX 75087. Goliad Street, Rockwall, TX 75087. Tarrant ...... City of Arlington The Honorable Jeff Wil- City Hall, 101 West https://msc.fema.gov/portal/ Apr. 19, 2019 ..... 485454 (18–06– liams, Mayor, City of Abram Street, Arlington, advanceSearch. 0363P). Arlington, P.O. Box TX 76010. 90231, Arlington, TX 76004.

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

Tarrant ...... City of North The Honorable Oscar Public Works Administra- https://msc.fema.gov/portal/ Apr. 15, 2019 ..... 480607 Richland Hills Trevino, Jr., Mayor, City tion and Engineering advanceSearch. (18–06– of North Richland Hills, Department, 4301 City 2611P). 4301 City Point Drive, Point Drive, North Rich- North Richland Hills, TX land Hills, TX 76180. 76180. Travis ...... City of Austin Mr. Spencer Cronk, Man- Watershed Protection De- https://msc.fema.gov/portal/ Apr. 29, 2019 ..... 480624 (18–06– ager, City of Austin, partment, 505 Barton advanceSearch. 3308P). P.O. Box 1088, Austin, Springs Road, Austin, TX 78767. TX 78704. Travis ...... City of The Honorable Victor Development Services https://msc.fema.gov/portal/ May 6, 2019 ...... 481028 Pflugerville Gonzales, Mayor, City Department, 201–B advanceSearch. (18–06– of Pflugerville, P.O. Box East Pecan Street, P.O. 2107P). 589. Pflugerville, TX Box 589, Pflugerville, 78691. TX 78691. Travis ...... Unincorporated The Honorable Sarah Travis County TNR, 700 https://msc.fema.gov/portal/ May 6, 2019 ...... 481026 areas Travis Eckhardt, Travis County Lavaca Street, 5th advanceSearch. County (18– Judge, 700 Lavaca Floor, Austin, TX 06–2107P). Street, Suite 2300, Aus- 78701. tin, TX 78701. Wilson ...... Unincorporated The Honorable Richard L. Wilson County Court- https://msc.fema.gov/portal/ May 2, 2019 ...... 480230 areas Wilson Jackson, Wilson County house Annex II, 800 advanceSearch. County (18– Judge, 1420 3rd Street, 10th Street, Building B, 06–3960P). Suite 101, Floresville, Floresville, TX 78114. TX 78114. Utah: Iron ...... City of Cedar The Honorable Maile Wil- City Hall, 10 North Main https://msc.fema.gov/portal/ May 20, 2019 ..... 490074 City (18–08– son, Mayor, City of Street, Cedar City, UT advanceSearch. 0328P). Cedar City, 10 North 84720. Main Street, Cedar City, UT 84720. Iron ...... Unincorporated The Honorable Michael Iron County Engineering https://msc.fema.gov/portal/ May 20, 2019 ..... 490073 areas Iron Bleak, Chairman, Iron and Surveying Depart- advanceSearch. County (18– County Board of Com- ment, 68 South 100 08–0328P). missioners, 68 South East, Parowan, UT 100 East, Parowan, UT 84761. 84761. Virginia: Prince Wil- City of Manassas Mr. William Patrick Pate, Engineering Department, https://msc.fema.gov/portal/ Apr. 25, 2019 ..... 510122 liam. (18–03– Manager, City of Ma- 8500 Public Works advanceSearch. 1933P). nassas, 9027 Center Drive, Manassas, VA Street, Manassas, VA 20110. 20110. Washington, DC: District of Colum- The Honorable Muriel Department of Energy https://msc.fema.gov/portal/ Apr. 29, 2019 ..... 110001 District of Colum- bia (18–03– Bowser, Mayor, District and Environment, 1200 advanceSearch. bia 1305P). of Columbia, 1350 1st Street Northeast, Pennsylvania Avenue 5th Floor, Washington, Northwest, Washington, DC 20002. DC 20004.

[FR Doc. 2019–03374 Filed 2–26–19; 8:45 am] have been made final for the final flood hazard information for each BILLING CODE 9110–12–P communities listed in the table below. community is available for inspection at The FIRM and FIS report are the basis the respective Community Map of the floodplain management measures Repository address listed in the tables DEPARTMENT OF HOMELAND that a community is required either to below and will be available online SECURITY adopt or to show evidence of having in through the FEMA Map Service Center effect in order to qualify or remain at https://msc.fema.gov by the date Federal Emergency Management qualified for participation in the Federal indicated above. Agency Emergency Management Agency’s FOR FURTHER INFORMATION CONTACT: Rick [Docket ID FEMA–2019–0002] (FEMA’s) National Flood Insurance Sacbibit, Chief, Engineering Services Program (NFIP). In addition, the FIRM Final Flood Hazard Determinations Branch, Federal Insurance and and FIS report are used by insurance Mitigation Administration, FEMA, 400 AGENCY: Federal Emergency agents and others to calculate C Street SW, Washington, DC 20472, Management Agency, DHS. appropriate flood insurance premium (202) 646–7659, or (email) ACTION: Notice. rates for buildings and the contents of [email protected]; or visit those buildings. the FEMA Map Information eXchange SUMMARY: Flood hazard determinations, DATES: The date of April 5, 2019 has (FMIX) online at https:// which may include additions or been established for the FIRM and, www.floodmaps.fema.gov/fhm/fmx_ modifications of Base Flood Elevations where applicable, the supporting FIS main.html. (BFEs), base flood depths, Special Flood report showing the new or modified SUPPLEMENTARY INFORMATION: Hazard Area (SFHA) boundaries or zone flood hazard information for each The designations, or regulatory floodways on community. Federal Emergency Management Agency the Flood Insurance Rate Maps (FIRMs) (FEMA) makes the final determinations and where applicable, in the supporting ADDRESSES: The FIRM, and if listed below for the new or modified Flood Insurance Study (FIS) reports applicable, the FIS report containing the flood hazard information for each

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community listed. Notification of these FEMA has developed criteria for The flood hazard determinations are changes has been published in floodplain management in floodprone made final in the watersheds and/or newspapers of local circulation and 90 areas in accordance with 44 CFR part communities listed in the table below. days have elapsed since that 60. (Catalog of Federal Domestic Assistance No. publication. The Deputy Associate Interested lessees and owners of real 97.022, ‘‘Flood Insurance.’’) Administrator for Insurance and property are encouraged to review the Mitigation has resolved any appeals Michael M. Grimm, new or revised FIRM and FIS report resulting from this notification. Assistant Administrator for Risk This final notice is issued in available at the address cited below for each community or online through the Management, Department of Homeland accordance with section 110 of the Security, Federal Emergency Management Flood Disaster Protection Act of 1973, FEMA Map Service Center at https:// Agency. 42 U.S.C. 4104, and 44 CFR part 67. msc.fema.gov.

Community Community map repository address

San Mateo County, California and Incorporated Areas Docket No.: FEMA–B–1604

City of Belmont ...... Public Works Department, One Twin Pines Lane, Belmont, CA 94002. City of Brisbane ...... Public Works, 50 Park Place, Brisbane, CA 94005. City of Burlingame ...... City Hall, 501 Primrose Road, Burlingame, CA 94010. City of East Palo Alto ...... Community and Economic Development Department, 1960 Tate Street, East Palo Alto, CA 94303. City of Foster City ...... Public Works, 610 Foster City Boulevard, Foster City, CA 94404. City of Menlo Park ...... City Hall, 701 Laurel Street, Menlo Park, CA 94025. City of Millbrae ...... City Hall, 621 Magnolia Avenue, Millbrae, CA 94030. City of Redwood City ...... City Hall, 1017 Middlefield Road, Redwood City, CA 94063. City of San Bruno ...... City Hall, 567 El Camino Real, San Bruno, CA 94066. City of San Carlos ...... Building Division, 600 Elm Street, San Carlos, CA 94070. City of San Mateo ...... Public Works Department, 330 West 20th Avenue, San Mateo, CA 94403. City of South San Francisco ...... City Hall, 400 Grand Avenue, South San Francisco, CA 94080. Unincorporated Areas of San San Mateo County Planning and Building Department, 455 County Center, Redwood City, CA 94063. Mateo County.

Eastland County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

City of Ranger ...... City Hall, 400 West Main Street, Ranger, TX 76470. Unincorporated Areas of Eastland Eastland County Judge’s Office, 100 West Main Street, Suite 203, Eastland, TX 76448. County.

Erath County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

Unincorporated Areas of Erath Erath County Courthouse, 100 West Washington Street, Stephenville, TX 76401. County.

Hood County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

City of DeCordova ...... DeCordova Bend Estates Country Club, 5301 Country Club Drive, Granbury, TX 76049. City of Granbury ...... Municipal Service Center, 401 North Park Street, Granbury, TX 76048. Unincorporated Areas of Hood Hood County Environmental Health Department, 201 West Bridge Street, Granbury, TX 76048. County.

Johnson County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

Unincorporated Areas of Johnson Johnson County Public Works Department, Johnson County Annex, 2 North Mill Street, Suite 305, County. Cleburne, TX 76033.

Palo Pinto County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

City of Gordon ...... City Hall, 105 South Main Street, Gordon, TX 76453. City of Graford ...... City Hall, 424 East Lee Avenue, Graford, TX 76449. City of Mineral Wells ...... City Clerk’s Office, 115 Southwest 1st Street, Mineral Wells, TX 76067. City of Mingus ...... City Hall, 229 South Mingus Boulevard, Mingus, TX 76463. City of Strawn ...... City Hall, 118 East Housley Street, Strawn, TX 76475. Unincorporated Areas of Palo Pinto Emergency Management Department, 109 North Oak Avenue, Mineral Wells, TX 76067. County.

Parker County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

City of Millsap ...... City Hall, 208 Fannin Street, Millsap, TX 76066. City of Mineral Wells ...... City Clerk’s Office, 115 Southwest 1st Street, Mineral Wells, TX 76067.

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Community Community map repository address

City of Weatherford ...... Utilities Service Center, 917 Eureka Street, Weatherford, TX 76086. Town of Cool ...... Cool Community Center, 150 South Farm to Market Road 113, Millsap, TX 76066. Unincorporated Areas of Parker Parker County Permitting Department, 1114 Santa Fe Drive, Weatherford, TX 76086. County.

Stephens County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

Unincorporated Areas of Stephens Stephens County Judge’s Office, 200 West Walker Street, Breckenridge, TX 76424. County.

Young County, Texas and Incorporated Areas Docket No.: FEMA–B–1745

Unincorporated Areas of Young Young County 911 Director’s Office, 516 4th Street, Room B5, Graham, TX 76450. County.

Marion County, West Virginia and Incorporated Areas Docket No.: FEMA–B–1763

City of Fairmont ...... J. Harper Meredith Building, 200 Jackson Street, 3rd Floor—Planning, Fairmont, WV 26554. Unincorporated Areas of Marion Marion County J. Harper Meredith Building, 200 Jackson Street, Room 403 Fairmont, WV 26554. County.

Monongalia County, West Virginia and Incorporated Areas Docket No.: FEMA–B–1763

City of Morgantown ...... City Hall, 389 Spruce Street, Morgantown, WV 26505. City of Westover ...... City Hall, 500 Dupont Road, Westover, WV 26501. Town of Granville ...... Town Hall, 1245 Main Street, Granville, WV 26534. Town of Star City ...... Municipal Building, 370 Broadway Avenue, Star City, WV 26505. Unincorporated Areas of Monongalia County Floodplain Permit Office, 243 High Street, Courthouse Room 110, Morganton, WV Monongalia County. 26505.

[FR Doc. 2019–03378 Filed 2–26–19; 8:45 am] will be used to calculate flood insurance and Mitigation has resolved any appeals BILLING CODE 9110–12–P premium rates for new buildings and resulting from this notification. their contents. The modified flood hazard determinations are made pursuant to DATES: Each LOMR was finalized as in DEPARTMENT OF HOMELAND section 206 of the Flood Disaster the table below. SECURITY Protection Act of 1973, 42 U.S.C. 4105, ADDRESSES: Each LOMR is available for and are in accordance with the National Federal Emergency Management inspection at both the respective Flood Insurance Act of 1968, 42 U.S.C. Agency Community Map Repository address 4001 et seq., and with 44 CFR part 65. listed in the table below and online For rating purposes, the currently [Docket ID FEMA–2019–0002] through the FEMA Map Service Center effective community number is shown Changes in Flood Hazard at https://msc.fema.gov. and must be used for all new policies Determinations FOR FURTHER INFORMATION CONTACT: Rick and renewals. Sacbibit, Chief, Engineering Services The new or modified flood hazard AGENCY: Federal Emergency Branch, Federal Insurance and information is the basis for the Management Agency, DHS. Mitigation Administration, FEMA, 400 floodplain management measures that ACTION: Notice. C Street SW, Washington, DC 20472, the community is required either to (202) 646–7659, or (email) adopt or to show evidence of being SUMMARY: New or modified Base [email protected]; or visit already in effect in order to remain (1-percent annual chance) Flood the FEMA Map Information eXchange qualified for participation in the Elevations (BFEs), base flood depths, (FMIX) online at https:// National Flood Insurance Program Special Flood Hazard Area (SFHA) www.floodmaps.fema.gov/fhm/fmx_ (NFIP). This new or modified flood hazard boundaries or zone designations, and/or main.html. regulatory floodways (hereinafter information, together with the referred to as flood hazard SUPPLEMENTARY INFORMATION: The floodplain management criteria required determinations) as shown on the Federal Emergency Management Agency by 44 CFR 60.3, are the minimum that indicated Letter of Map Revision (FEMA) makes the final flood hazard are required. They should not be (LOMR) for each of the communities determinations as shown in the LOMRs construed to mean that the community listed in the table below are finalized. for each community listed in the table must change any existing ordinances Each LOMR revises the Flood Insurance below. Notice of these modified flood that are more stringent in their Rate Maps (FIRMs), and in some cases hazard determinations has been floodplain management requirements. the Flood Insurance Study (FIS) reports, published in newspapers of local The community may at any time enact currently in effect for the listed circulation and 90 days have elapsed stricter requirements of its own or communities. The flood hazard since that publication. The Deputy pursuant to policies established by other determinations modified by each LOMR Associate Administrator for Insurance Federal, State, or regional entities.

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This new or modified flood hazard changes in flood hazard determinations (Catalog of Federal Domestic Assistance No. determinations are used to meet the are in accordance with 44 CFR 65.4. 97.022, ‘‘Flood Insurance.’’) Interested lessees and owners of real floodplain management requirements of Michael M. Grimm, the NFIP and are used to calculate the property are encouraged to review the Assistant Administrator for Risk appropriate flood insurance premium final flood hazard information available at the address cited below for each Management, Department of Homeland rates for new buildings, and for the Security, Federal Emergency Management contents in those buildings. The community or online through the FEMA Map Service Center at https:// Agency. msc.fema.gov.

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

Colorado: Denver (FEMA City and County of The Honorable Michael Hancock, Mayor, Department of Public Works, Jan. 11, 2019 ...... 080046 Docket No.: Denver (18–08– City and County of Denver, 1437 Ban- 201 West Colfax Avenue, B–1863). 1060P). nock Street, Room 350, Denver, CO Denver, CO 80202. 80202. Denver (FEMA City of Fountain (17– The Honorable Gabriel Ortega, Mayor, Pikes Peak Regional Develop- Jan. 15, 2019 ...... 080061 Docket No.: 08–0467P). City of Fountain, 116 South Main ment Center, 2880 Inter- B–1863). Street, Fountain, CO 80817. national Circle, Colorado Springs, CO 80910. El Paso (FEMA City of Manitou The Honorable Ken A. Jaray, Mayor, City City Hall, 606 Manitou Avenue, Dec. 20, 2018 ...... 080063 Docket No.: Springs (18–08– of Manitou Springs, 606 Manitou Ave- Manitou Springs, CO 80829. B–1855). 0141P). nue, Manitou Springs, CO 80829. El Paso (FEMA Unincorporated The Honorable Darryl Glenn, President, Pikes Peak Regional Develop- Jan. 15, 2019 ...... 080059 Docket No.: areas of El Paso El Paso County, Board of Commis- ment Center, 2880 Inter- B–1863). County (17–08– sioners, 200 South Cascade Avenue, national Circle, Colorado 0467P). Suite 100, Colorado Springs, CO Springs, CO 80910. 80903. Connecticut: New Haven City of New Haven The Honorable Toni N. Harp, Mayor, City Planning Department, 165 Jan. 18, 2019 ...... 090084 (FEMA (18–01–1588P). of New Haven, 165 Church Street, New Church Street, 5th Floor, Docket No.: Haven, CT 06510. New Haven, CT 06510. B–1863). Tolland (FEMA Town of Mansfield Mr. Derrik M. Kennedy, Manager, Town of Town Hall, 4 South Eagleville Jan. 11, 2019 ...... 090128 Docket No.: (18–01–0807P). Mansfield, 4 South Eagleville Road, Road, Mansfield, CT 06268. B–1863). Mansfield, CT 06268. Delaware: Kent (FEMA Town of Camden The Honorable Justin T. King, Mayor, Land Use Department, 1783 Jan. 9, 2019 ...... 100003 Docket No.: (18–03–0719P). Town of Camden, 1783 Friends Way, Friends Way, Camden, DE B–1863). Camden, DE 19934. 19934. Kent (FEMA Unincorporated The Honorable P. Brooks Banta, Presi- Kent County Inspections and Jan. 9, 2019 ...... 100001 Docket No.: areas of Kent dent and First District Commissioner, Enforcement Department, B–1863). County (18–03– Kent County Levy Court, 555 Bay 555 Bay Road, Dover, DE 0719P). Road, Dover, DE 19901. 19901. Florida: Collier (FEMA City of Marco Island The Honorable Jared Grifoni, Chairman, Building Services Department, Dec. 19, 2018 ...... 120426 Docket No.: (18–04–5420P). City of Marco Island Council, 50 Bald 50 Bald Eagle Drive, Marco B–1855). Eagle Drive, Marco Island, FL 34145. Island, FL 34145. Lee (FEMA City of Sanibel (18– The Honorable Kevin Ruane, Mayor, City Planning Department, 800 Dun- Dec. 19, 2018 ...... 120402 Docket No.: 04–4629P). of Sanibel, 800 Dunlop Road, Sanibel, lop Road, Sanibel, FL 33957. B–1855). FL 33957. Lee (FEMA Unincorporated Mr. Roger Desjarlais, Manager, Lee Lee County Building Depart- Jan. 17, 2019 ...... 125124 Docket No.: areas of Lee County, 2120 Main Street, Fort Myers, ment, 1500 Main Street, Fort B–1863). County (18–04– FL 33901. Myers, FL 33901. 5442P). Monroe (FEMA City of Marathon The Honorable Michelle Coldiron, Mayor, Planning Department, 9805 Jan. 23, 2019 ...... 120681 Docket No.: (18–04–5518P). City of Marathon, 9805 Overseas High- Overseas Highway, Mara- B–1863). way, Marathon, FL 33050. thon, FL 33050. Monroe (FEMA Unincorporated The Honorable David Rice, Mayor, Mon- Monroe County Building De- Dec. 26, 2018 ...... 125129 Docket No.: areas of Monroe roe County Board of Commissioners, partment, 2798 Overseas B–1855). County (18–04– 9400 Overseas Highway, Suite 210, Highway, Suite 300, Mara- 4989P). Marathon, FL 33050. thon, FL 33050. Monroe (FEMA Unincorporated The Honorable David Rice, Mayor, Mon- Monroe County Building De- Dec. 27, 2018 ...... 125129 Docket No.: areas of Monroe roe County Board of Commissioners, partment, 2798 Overseas B–1855). County (18–04– 9400 Overseas Highway, Suite 210, Highway, Suite 300, Mara- 4990P). Marathon, FL 33050. thon, FL 33050. Monroe (FEMA Unincorporated The Honorable David Rice, Mayor, Mon- Monroe County Building De- Dec. 26, 2018 ...... 125129 Docket No.: areas of Monroe roe County Board of Commissioners, partment, 2798 Overseas B–1855). County (18–04– 9400 Overseas Highway, Suite 210, Highway, Suite 300, Mara- 4991P). Marathon, FL 33050. thon, FL 33050. Monroe (FEMA Unincorporated The Honorable David Rice, Mayor, Mon- Monroe County Building De- Jan. 16, 2019 ...... 125129 Docket No.: areas of Monroe roe County Board of Commissioners, partment, 2798 Overseas B–1863). County (18–04– 9400 Overseas Highway, Suite 210, Highway, Suite 300, Mara- 5414P). Marathon, FL 33050. thon, FL 33050. Monroe (FEMA Unincorporated The Honorable David Rice, Mayor, Mon- Monroe County Building De- Jan. 16, 2019 ...... 125129 Docket No.: areas of Monroe roe County Board of Commissioners, partment, 2798 Overseas B–1863). County (18–04– 9400 Overseas Highway, Suite 210, Highway, Suite 300, Mara- 5417P). Marathon, FL 33050. thon, FL 33050.

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

Monroe (FEMA Village of Islamorada The Honorable Chris Sante, Mayor, Vil- Planning and Development De- Jan. 2, 2019 ...... 120424 Docket No.: (18–04–5481P). lage of Islamorada, 86800 Overseas partment, 86800 Overseas B–1863). Highway, Islamorada, FL 33036. Highway, Islamorada, FL 33036. Pinellas (FEMA Unincorporated The Honorable Kenneth T. Welch, Chair- Pinellas County Building Serv- Dec. 20, 2018 ...... 125139 Docket No.: areas of Pinellas man, Pinellas County Board of Com- ices Department, 440 Court B–1855). County (18–04– missioners, 315 Court Street, Clear- Street, Clearwater, FL 2032P). water, FL 33756. 33756. Polk (FEMA Unincorporated The Honorable R. Todd Dantzler, Chair- Polk County Floodplain Depart- Jan. 24, 2019 ...... 120261 Docket No.: areas of Polk man, Polk County Board of Commis- ment, 330 West Church B–1863). County (18–04– sioners, 330 West Church Street, Street, Bartow, FL 33831. 1818P). Bartow, FL 33831. Georgia: Walton Unincorporated The Honorable Kevin Little, Chairman, Walton County Planning and Dec. 20, 2018 ...... 130185 (FEMA Docket areas of Walton Walton County Board of Commis- Development Department, No.: B–1855). County (18–04– sioners, 111 South Broad Street, Mon- 303 South Hammond Drive, 3815P). roe, GA 30655. Suite 98, Monroe, GA 30655. Louisiana: Iberia (FEMA City of New Iberia The Honorable Freddie DeCourt, Mayor, Permits and Inspections De- Dec. 19, 2018 ...... 220082 Docket No.: (18–06–0845P). City of New Iberia, 457 East Main partment, 457 East Main B–1855). Street, Suite 300, New Iberia, LA Street, Suite 412, New Ibe- 70560. ria, LA 70560. Iberia (FEMA Unincorporated The Honorable Scott Saunier, Chief Ad- Iberia Parish Permits, Planning, Dec. 19, 2018 ...... 220078 Docket No.: areas of Iberia ministrative Officer, Iberia Parish, 300 Zoning and Building Depart- B–1855). Parish (18–06– Iberia Street, Suite 400, New Iberia, LA ment, 715–A Weldon Street, 0845P). 70560. New Iberia, LA 70560. Maine: Knox (FEMA Town of Owls Head The Honorable Thomas Von Malder, Building Department, 224 Ash Jan. 11, 2019 ...... 230075 Docket No.: B– (18–01–1542P). Chairman, Town of Owls Head Board Point Drive, Owls Head, ME 1863). of Selectmen, 224 Ash Point Drive, 04854. Owls Head, ME 04854. Massachusetts: Town of Rockport The Honorable Sarah J. Wilkinson, Chair, Department of Inspection Serv- Jan. 9, 2019 ...... 250100 Essex (FEMA (18–01–1042P). Town of Rockport Board of Selectmen, ices, 34 Broadway, Rockport, Docket No.: B– 34 Broadway, Rockport, MA 01966. MA 01966. 1863). Mississippi: Warren City of Vicksburg The Honorable George E. Flaggs, Jr., Inspections Department, 819 Jan. 2, 2019 ...... 280176 (FEMA Docket (18–04–5020P). Mayor, City of Vicksburg, 1401 Walnut South Street, Vicksburg, MS No.: B–1863). Street, Vicksburg, MS 39180. 39180. Nevada: Clark Unincorporated The Honorable Steve Sisolak, Chairman, Clark County Public Works De- Jan. 25, 2019 ...... 320003 (FEMA Docket areas of Clark Clark County Board of Commissioners, partment, 500 South Grand No.: B–1863). County (18–09– 500 South Grand Central Parkway, Las Central Parkway, Las Vegas, 0813P). Vegas, NV 89155. NV 89155. New Mexico: Unincorporated The Honorable Steven Michael Quezada, Bernalillo County Public Works Jan. 14, 2019 ...... 350001 Bernalillo (FEMA areas of Bernalillo Chairman, Bernalillo County Board of Division, 2400 Broadway Docket No.: B– County (18–06– Commissioners, 1 Civic Plaza North- Boulevard Southeast, Albu- 1863). 2313P). west, Albuquerque, NM 87102. querque, NM 87102. Pennsylvania: Columbia Town of Bloomsburg The Honorable William Kreisher, Mayor, Town Hall, 301 East 2nd Dec. 28, 2018 ...... 420339 (FEMA Dock- (18–03–0068P). Town of Bloomsburg, 301 East 2nd Street, Bloomsburg, PA et No.: B– Street, Bloomsburg, PA 17815. 17815. 1855). Columbia Township of The Honorable Roger W. Nuss, Chair- Township Hall, 153 Old Read- Dec. 28, 2018 ...... 420342 (FEMA Dock- Catawissa (18– man, Township of Catawissa Board of ing Road, Catawissa, PA et No.: B– 03–0068P). Supervisors, 153 Old Reading Road, 17820. 1855). Catawissa, PA 17820. South Carolina: Charleston Town of Sullivan’s The Honorable Patrick O’Neil, Mayor, Town Hall, 2056 Middle Street, Jan. 2, 2019 ...... 455418 (FEMA Dock- Island (18–04– Town of Sullivan’s Island, P.O. Box Sullivan’s Island, SC 29482. et No.: B– 5145P). 427, Sullivan’s Island, SC 29482. 1855). Charleston Town of Sullivan’s The Honorable Patrick O’Neil, Mayor, Town Hall, 2056 Middle Street, Jan. 2, 2019 ...... 455418 (FEMA Dock- Island (18–04– Town of Sullivan’s Island, P.O. Box Sullivan’s Island, SC 29482. et No.: B– 5277P). 427, Sullivan’s Island, SC 29482. 1855). South Dakota: Minnehaha City of Sioux Falls The Honorable Paul Ten Haken, Mayor, Planning and Development Dec. 20, 2018 ...... 460060 (FEMA Dock- (18–08–0836P). City of Sioux Falls, 224 West 9th Services Department, 231 et No.: B– Street, Sioux Falls, SD 57104. North Dakota Avenue, Sioux 1855). Falls, SD 57104. Stanley (FEMA City of Fort Pierre The Honorable Gloria Hanson, Mayor, Department of Public Works, Jan. 25, 2019 ...... 465419 Docket No.: (18–08–0148P). City of Fort Pierre, P.O. Box 700, Fort 08 East 2nd Avenue, Fort B–1863). Pierre, SD 57532. Pierre, SD 57532. Stanley (FEMA Unincorporated The Honorable Dana Iversen, Chair, Stanley County Department of Jan. 25, 2019 ...... 460287 Docket No.: areas of Stanley Stanley County Commission, P.O. Box Public Works, 08 East 2nd B–1863). County (18–08– 595, Fort Pierre, SD 57532. Avenue, Fort Pierre, SD 0148P). 57532. Tennessee: Wash- City of Johnson City The Honorable David Tomita, Mayor, City Public Works Department, 601 Jan. 2, 2019 ...... 475432 ington (FEMA (18–04–4923P). of Johnson City, P.O. Box 2150, John- East Main Street, Johnson Docket No.: B– son City, TN 37605. City, TN 37605. 1855). Texas:

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

Bell (FEMA City of Temple (18– The Honorable Tim Davis, Mayor, City of Department of Public Works, Jan. 9, 2019 ...... 480034 Docket No.: 06–1765P). Temple, 2 North Main Street, Suite Engineering Division, 3210 B–1863). 103, Temple, TX 76501. East Avenue H, Building A, Suite 107, Temple, TX 76501. Bell (FEMA Unincorporated The Honorable Jon H. Burrows, Bell Bell County Engineering De- Jan. 9, 2019 ...... 480706 Docket No.: areas of Bell County Judge, P.O. Box 768, Belton, partment, 206 North Main B–1863). County (18–06– TX 76513. Street, Belton, TX 76513. 1765P). Bexar (FEMA City of Universal City The Honorable John Williams, Mayor, City Stormwater Department, 2150 Jan. 14, 2019 ...... 480049 Docket No.: (18–06–1420P). of Universal City, 2150 Universal City Universal City Boulevard, B–1863). Boulevard, Universal City, TX 78148. Universal City, TX 78148. Bexar (FEMA Unincorporated The Honorable Nelson W. Wolff, Bexar Bexar County Public Works Dec. 24, 2018 ...... 480035 Docket No.: areas of Bexar County Judge, 101 West Nueva Street, Department, 233 North B–1863). County (18–06– 10th Floor, San Antonio, TX 78205. Pecos-La Trinidad Street, 1812P). Suite 420, San Antonio, TX 78207. Collin (FEMA City of Allen (18–06– Mr. Peter H. Vargas, Manager, City of Engineering and Traffic Depart- Jan. 7, 2019 ...... 480131 Docket No.: 1943P). Allen, 305 Century Parkway, Allen, TX ment, 305 Century Parkway, B–1863). 75013. Allen, TX 75013. Collin (FEMA City of Plano (18– The Honorable Harry LaRosiliere, Mayor, Engineering Department, 1520 Jan. 18, 2019 ...... 480140 Docket No.: 06–1563P). City of Plano, 1520 K Avenue, Plano, K Avenue, Plano, TX 75074. B–1863). TX 75074. Collin (FEMA City of Plano (18– The Honorable Harry LaRosiliere, Mayor, Engineering Department, 1520 Jan. 7, 2019 ...... 480140 Docket No.: 06–1943P). City of Plano, 1520 K Avenue, Plano, K Avenue, Plano, TX 75074. B–1863). TX 75074. Tarrant (FEMA City of Fort Worth The Honorable Betsy Price, Mayor, City Transportation and Public Dec. 28, 2018 ...... 480596 Docket No.: (18–06–1064P). of Fort Worth, 200 Texas Street, Fort Works Department, 200 B–1863). Worth, TX 76102. Texas Street, Fort Worth, TX 76102. Tarrant (FEMA City of Kennedale The Honorable Brian Johnson, Mayor, Planning and Development De- Jan. 3, 2019 ...... 480603 Docket No.: (18–06–3137X). City of Kennedale, 405 Municipal Drive, partment, 405 Municipal B–1863). Kennedale, TX 76060. Drive, Kennedale, TX 76060. Webb (FEMA City of Laredo (17– The Honorable Pete Saenz, Mayor, City Planning and Zoning Depart- Jan. 14, 2019 ...... 480651 Docket No.: 06–3048P). of Laredo, 1110 Houston Street, 3rd ment, 1120 San Bernardo B–1863). Floor, Laredo, TX 78040. Avenue, Laredo, TX 78040. Utah: Salt Lake City of Draper (18– The Honorable Troy K. Walker, Mayor, Community Development De- Dec. 26, 2018 ...... 490244 (FEMA Docket 08–0572P). City of Draper, 1020 East Pioneer partment, 1020 East Pioneer No.: B–1855). Road, Draper, UT 84020. Road, Draper, UT 84020. Virginia: Independent City of Roanoke Mr. Robert S. Cowell, Jr., Manager, City Engineering Division, 215 Jan. 4, 2019 ...... 510130 City (FEMA Dock- (18–03–1202P). of Roanoke, 215 Church Avenue Church Avenue Southwest, et No.: B–1855). Southwest, Room 364, Roanoke, VA Room 350, Roanoke, VA 24011. 24011. Wyoming: Sheridan (FEMA Town of Ranchester The Honorable Peter Clark, Mayor, Town Town Hall, 145 Coffeen Street, Dec. 20, 2018 ...... 560046 Docket No.: (18–08–0451P). of Ranchester, P.O. Box 695, Ranchester, WY 82839. B–1855). Ranchester, WY 82839. Sheridan (FEMA Unincorporated The Honorable Mike Nickel, Chairman, Sheridan County Public Works, Dec. 20, 2018 ...... 560047 Docket No.: areas of Sheridan Sheridan County Board of Commis- Planning and Engineering B–1855). County (18–08– sioners, 224 South Main Street, Suite Department, 224 South Main 0451P). B1, Sheridan, WY 82801. Street, Suite B8, Sheridan, WY 82801.

[FR Doc. 2019–03368 Filed 2–26–19; 8:45 am] requesting comment from all interested speech impairments may access this BILLING CODE 9110–12–P parties on the proposed collection of number through TTY by calling the toll- information. The purpose of this notice free Federal Relay Service at (800) 877– is to allow for 60 days of public 8339. comment. DEPARTMENT OF HOUSING AND FOR FURTHER INFORMATION CONTACT: For URBAN DEVELOPMENT DATES: Comments Due Date: April 29, copies of the proposed forms and other [Docket No. FR–7014–N–01] 2019. available information contact Jessica ADDRESSES: Interested persons are Grantling, Office of Asset Management 60-Day Notice of Proposed Information invited to submit comments regarding and Portfolio Oversight, Department of Collection: Service Coordinators in this proposal. Comments should refer to Housing and Urban Development, 451 Multifamily Housing the proposal by name and/or OMB 7th Street SW, Washington, DC 20410 by email [email protected] AGENCY: Office of the Assistant Control Number and should be sent to: telephone at 202–402–2521. This is not Secretary for Housing—Federal Housing Colette Pollard, Reports Management a toll-free number. Persons with hearing Commissioner, HUD. Officer, QDAM, Department of Housing or speech impairments may access this ACTION: Notice. and Urban Development, 451 7th Street SW, Room 4176, Washington, DC number through TTY by calling the toll- SUMMARY: HUD is seeking approval from 20410–5000; telephone 202–402–3400 free Federal Relay Service at (800) 877– the Office of Management and Budget (this is not a toll-free number) or email 8339. (OMB) for the information collection at [email protected] for a copy of Copies of available documents described below. In accordance with the the proposed forms or other available submitted to OMB may be obtained Paperwork Reduction Act, HUD is information. Persons with hearing or from Ms. Pollard.

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SUPPLEMENTARY INFORMATION: This B. Solicitation of Public Comment the proposal by name and/or OMB notice informs the public that HUD is This notice is soliciting comments Control Number and should be sent to seeking approval from OMB for the from members of the public and affected Colette Pollard, Reports Management information collection described in parties concerning the collection of Officer, QDAM, Department of Housing Section A. information described in Section A on and Urban Development, 451 7th Street SW, Room 4176, Washington, DC A. Overview of Information Collection the following: (1) Whether the proposed collection 20410–5000; telephone 202–402–3400 Title of Information Collection: of information is necessary for the (this is not a toll-free number) or email Service Coordinators in Multifamily proper performance of the functions of at [email protected] for a copy of Housing. the agency, including whether the the proposed form. Persons with hearing OMB Approval Number: 2502–0447. information will have practical utility; or speech impairments may access this OMB Expiration Date: 11/30/18. (2) The accuracy of the agency’s number through TTY by calling the toll- Type of Request: Reinstatement of estimate of the burden of the proposed free Federal Relay Service at (800) 877– with change, of previously approved collection of information; 8339. collection for which approval has (3) Ways to enhance the quality, Electronic Submission of Comments. expired. utility, and clarity of the information to Interested persons may also submit Form Numbers: HUD–91186, HUD– be collected; and comments electronically through the 91186–A, HUD–50080–SCMF, HUD– (4) Ways to minimize the burden of Federal eRulemaking Portal at 2530, HUD–2880, SF–424, SF–424-Supp the collection of information on those www.regulations.gov. HUD strongly and SF–LLL. who are to respond; including through encourages commenters to submit Description of the need for the the use of appropriate automated comments electronically. Electronic information and proposed use: The collection techniques or other forms of submission of comments allows the collection of information is necessary to information technology, e.g., permitting commenter maximum time to prepare ensure efficient and proper use of funds electronic submission of responses. and submit a comment, ensures timely for eligible activities. This information HUD encourages interested parties to receipt by HUD, and enables HUD to collection will assist HUD in better submit comment in response to these make them immediately available to the determining the need and eligibility questions. public. Comments submitted electronically through the when reviewing a new request for C. Authority funding. Further, without this www.regulations.gov website can be information, HUD staff cannot Section 3507 of the Paperwork viewed by other commenters and effectively assess the continued need for Reduction Act of 1995, 44 U.S.C. interested members of the public. renewals. The information will also Chapter 35. Commenters should follow the enable HUD and the grantees to more Dated: February 14, 2019. instructions provided on that site to effectively evaluate their program Vance T. Morris, submit comments electronically. performance, account for funds and Special Assistant to the Assistant Secretary Note: To receive consideration as public maintain appropriate program records. for Housing—Federal Housing Commissioner. comments, comments must be submitted Grant funds are taken to pay costs [FR Doc. 2019–03416 Filed 2–26–19; 8:45 am] through one of the methods specified above. Again, all submissions must refer to the previously incurred and are obtained BILLING CODE 4210–67–P through use of the electronic Line of docket number and title of the notice. Credit Control System (eLOCCS). FOR FURTHER INFORMATION CONTACT: Grantees are required to draw down DEPARTMENT OF HOUSING AND Christopher Walsh, Grants Management from eLOCCS monthly or quarterly. URBAN DEVELOPMENT Grantees will submit the revised form and Oversight Division, Office of [Docket No. FR–7018–N–01] HUD–50080–SCMF on a semi-annual Strategic Planning and Management, Department of Housing and Urban basis. Grantees will complete one 60 Day Notice of Proposed Information worksheet per draw down. Each Development, 451 Seventh St. SW, Collection Comment Request: HUD Room 3156, Washington, DC 20410 or worksheet will list every expense Standardized Grant Application Forms incurred during that month or quarter. by email [email protected] Grantees will be required to maintain AGENCY: Office of Strategic Planning and telephone 202–402–4353. This is not a detailed expense documentation in their Management, HUD. toll-free number. Persons with hearing or speech impairments may access this files. HUD may request copies of such ACTION: Notice. documentation if additional program number through TTY by calling the toll- review is warranted. The data reported SUMMARY: HUD is seeking approval from free Federal Relay Service at (800) 877– will allow HUD staff to track expenses the Office of Management and Budget 8339. and drawdown of funds for eligible (OMB) for the information collection Copies of the proposed data collection costs at intervals within the grant term. described below. In accordance with the form may be requested from Ms. Respondents: Multifamily Housing Paperwork Reduction Act, HUD is Pollard. assisted housing owners. requesting comment from all interested parties on the proposed collection of SUPPLEMENTARY INFORMATION: This Estimated Number of Respondents: notice informs the public that the 4,230. information. The purpose of this notice is to allow for 60 days of public Department is soliciting comments prior Estimated Number of Responses: comment. to submitting the proposed information 9,420. collection to OMB for review, as Frequency of Response: Quarterly to DATES: Comments Due Date: April 29, required by the Paperwork Reduction annually. 2019. Act of 1995 (44 U.S.C. Chapter 35, as Average Hours per Response: 1.5 ADDRESSES: Interested persons are amended). HUD is seeking approval hour. invited to submit comments regarding from OMB for the information collection Total Estimated Burden hours: 8,560. this proposal. Comments should refer to described in Section A.

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A. Overview of Information Collection processes for several HUD programs. collection in order to consolidate public Title of Proposal: HUD Standardized The policy of standardization is in input on these forms. Grant Application Forms. accordance with the provisions of the Public notification of the renewal of Type of Request: Extension of a Federal Financial Assistance these forms was made in December 20, currently approved collection. Improvement Act of 1999 (Pub. L. 106– 2017 as part of the Consolidated OMB Control Number, if applicable: 107, signed November 20, 1999). The Competive Grant Paperwork Reduction 2501–0017. HUD 424 Supplement, Survey on Act Notice (FR–6005–N–01, 82 FR Additional OMB control numbers Ensuring Equal Opportunity for 60410, published December 20, 2017). Applicants is completed by nonprofit applicable to government wide Members of affected public: standardized forms: organizations to provide HUD with an understanding of the population of Applicants for HUD competitively 4040–0004 SF 424 funded assistance. 4040–0007 SF 424–B applicants for Federal funds. 4040–0009 SF 424–D In addition, the collection references Estimation of the total numbers of SLLL—Grants.gov form a number of standard forms from the hours needed to prepare the information SFLLa Grants.gov form government wide SF Family of Forms. collection including number of 2501–0032 Applicant/Recipient These forms are used for all HUD respondents, frequency of response, and Disclosure/Update Report (HUD applications. However, the burden hours of response: The forms are used Form 2880) associated with those forms is not by entities when they apply for grants. Description of the need for the reflected in this collection because that As HUD receives roughly 14,000 information and proposed use: burden is reflected in Office of applications on an annual basis, we Approval is sought for extension of Management and Budget sponsored expect that there will be 14,000 HUD standardized forms which are used government-wide information respondents who may be completing by various HUD competitive grant collections. these forms. HUD estimates that the programs in the grant application In addition, HUD may combine into hourly rate of individuals completing process. The HUD Common Budget this collection OMB collection 2501– the form, at $60.74 per hour.1 The total Form—(HUD–CB), the Common Budget 0032, HUD Form 2880 Applicant/ estimated burden on respondents would Form Worksheet (HUD–CBW), and the Recipient Disclosure/Update Report thus reach $2,648,264.00 on an annual HUD Matrix (HUD–M) are used to offer which is being separately processed in basis. This is shown in the following standardized grant application advance of this publicaiton into this table.

Number of Hours per Form respondents Frequency respondent Total hours Cost per hour Total cost

SF424 ...... 14,000 ...... SF424B ...... 14,000 ...... SF424D ...... 2000 ...... SFLLL ...... 14,000 ...... SFLLLa ...... 12,000 ...... HUD424CB ...... 1,100 1 3 3,300 60.74 $200,442.00 HUD424CBW ...... 1,100 1 3 3,300 60.74 200,442.00 HUD424M ...... 200 1 5 1,000 60.74 60,740.00 HUD424SUP ...... 4,000 1 2 8,000 60.74 485,920.00 HUD2880 ...... 14,000 1 2 28,000 60.74 1,700,720.00

Total ...... 14,000 ...... 2,648,264.00

Estimation of the Cost to the Federal estimates the cost of the maximum hour by a GS 13 step 5 performing a Government: The following table shows burden on HUD staff would total at most review, and then by a GS 14 and a GS the estimated burden of Federal $5,011,267. This estimate assumes that 15 who will look at summary results on financial assistance review. HUD each form would be reviewed for one an annual basis.2

Estimated Estimated Estimated Total Estimated respondents Frequency number of burden hours burden hours Cost per hour estimated responses per review per year burden 2

14,000 ...... 1 76,400 1 76,400 $61.08 $21,191,100 14,000 ...... 1 76,400 .15 19,100 72.20 344,755 5,011,267

B. Solicitation of Public Comment affecting agencies concerning the collection of information is necessary proposed collection of information to: for the proper performance of the This notice is soliciting comments (1) Evaluate whether the proposed functions of the agency, including from members of the public and

1 Estimated cost for respondents is calculated $19.03 per hour for fringe benefits for a total $60.74 Washington-Baltimore-Arlington locality pay), plus from the June 2018 Department of Labor Bureau of per hour. 16% fringe benefit for a total of $61.08 per hour, Labor Statistics report on Employer Costs for 2 Federal staff time is estimated for a GS–13 step as well as 15 minutes each for a GS 14 and a GS Employee Compensation determined that the 5 hourly rate at $52.66 per hour (from the Office 15 based on similar calculations bringing the hourly rate of management, professional and related blended total to $100.91/hr. wages and salaries averaged $41.71 per hour plus of Personnel Management and the table with

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whether the information will have free Federal Relay Service at (800) 877– (1) Whether the proposed collection practical utility; (2) Evaluate the 8339. of information is necessary for the accuracy of the agency’s estimate of the FOR FURTHER INFORMATION CONTACT: proper performance of the functions of burden of the proposed collection of Devasia Karimpanal, Program Specialist, the agency, including whether the information; (3) Enhance the quality, Business Relations and Support information will have practical utility; utility, and clarity of the information to Contracts Division, Email: (2) The accuracy of the agency’s be collected; and (4) Minimize the [email protected]; estimate of the burden of the proposed burden of the collection of information Telephone: 202–402–7682; Department collection of information; on those who are to respond; including of Housing and Urban Development, (3) Ways to enhance the quality, through the use of appropriate 451 7th Street SW, Washington, DC utility, and clarity of the information to automated collection techniques or 20410. This is not a toll-free number. be collected; and other forms of information technology, Persons with hearing or speech (4) Ways to minimize the burden of e.g., permitting electronic submission of impairments may access this number the collection of information on those responses. through TTY by calling the toll-free who are to respond; including through the use of appropriate automated C. Authority Federal Relay Service at (800) 877–8339. Copies of available documents collection techniques or other forms of The Paperwork Reduction Act of submitted to OMB may be obtained information technology, e.g., permitting 1995, 44 U.S.C. Chapter 35, as amended. from Ms. Pollard. electronic submission of responses. Dated: February 11, 2019. SUPPLEMENTARY INFORMATION: This HUD encourages interested parties to Angie R. Scott, notice informs the public that HUD is submit comment in response to these Acting Director, Office of Strategic Planning seeking approval from OMB for the questions. and Management. information collection described in C. Authority Section A. [FR Doc. 2019–03417 Filed 2–26–19; 8:45 am] Section 3507 of the Paperwork BILLING CODE 4210–67–P A. Overview of Information Collection Reduction Act of 1995, 44 U.S.C. Title of Information Collection: Chapter 35. DEPARTMENT OF HOUSING AND Previous Participation Certification. Dated: February 14, 2019. URBAN DEVELOPMENT OMB Approval Number: 2502–0118. Vance T. Morris, OMB Expiration Date: 5–31–2019. Type of Request: Revision of a Special Assistant to the Secretary for [Docket No. FR–7014–N–02] Housing—Federal Housing Commissioner. currently approved collection. 60-Day Notice of Proposed Information Form Number: HUD Form 2530. [FR Doc. 2019–03418 Filed 2–26–19; 8:45 am] Collection: Previous Participation Description of the need for the BILLING CODE 4210–67–P Certification information and proposed use: The HUD–2530 process provides review and AGENCY: Office of the Assistant clearance for participants in HUD’s DEPARTMENT OF THE INTERIOR Secretary for Housing- Federal Housing multifamily insured and non-insured Commissioner, HUD. projects. The information collected Fish and Wildlife Service ACTION: Notice. (participants’ previous participation record) is reviewed to determine if they [FWS–HQ–R–2019–N005; SUMMARY: HUD is seeking approval from have carried out their past financial, FXGO1664091HCC0–FF09D00000–189] the Office of Management and Budget legal, and administrative obligations in (OMB) for the information collection a satisfactory and timely manner. The International Wildlife Conservation described below. In accordance with the HUD–2530 process requires a principal Council; Public Meeting Paperwork Reduction Act, HUD is to certify to their prior participation in requesting comment from all interested AGENCY: Fish and Wildlife Service, multifamily projects, and to disclose Interior. parties on the proposed collection of other information which could affect the ACTION: information. The purpose of this notice approval for the proposed participation. Notice of meeting. is to allow for 60 days of public Respondents (i.e. affected public): comment. SUMMARY: In accordance with the Multifamily project participants such as Federal Advisory Committee Act, the DATES: Comments Due Date: April 29, owners, managers, developers, U.S. Fish and Wildlife Service 2019. consultants, general contractors, and announces a public meeting of the nursing home owners and operators. International Wildlife Conservation ADDRESSES: Interested persons are Estimated Number of Respondents: invited to submit comments regarding Council, which provides advice and 9,000. recommendations to the Secretary of the this proposal. Comments should refer to Estimated Number of Responses: Interior regarding the benefits that result the proposal by name and/or OMB 9,000. from U.S. citizens traveling to foreign Control Number and should be sent to: Frequency of Response: 1. Colette Pollard, Reports Management Average Hours per Response: Three nations to engage in hunting. Officer, QDAM, Department of Housing hours for paper 2530 and 1 hour for DATES: The meeting will be March 14, and Urban Development, 451 7th Street electronic 2530. 2019, from 9 a.m. to 5 p.m. (Central SW, Room 4176, Washington, DC Total Estimated Burden: 12,000. Standard Time) and March 15, 2019, 20410–5000; telephone 202–402–3400 from 1:00 p.m. to 3:00 p.m. (Central (this is not a toll-free number) or email B. Solicitation of Public Comment Standard Time). For deadlines and at [email protected] for a copy of This notice is soliciting comments directions on registering to attend, the proposed forms or other available from members of the public and affected submitting written material, and giving information. Persons with hearing or parties concerning the collection of an oral presentation, please see Public speech impairments may access this information described in Section A on Input under SUPPLEMENTARY number through TTY by calling the toll- the following: INFORMATION.

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ADDRESSES: The meeting will be held at (b) Reviewing and making Species of Wild Flora and Fauna, with the DFW Airport Marriott South, 4151 recommendations for changes, when the goal of eliminating regulatory Centreport Drive, Fort Worth, TX 76155. needed, on all Federal programs and/or duplications. FOR FURTHER INFORMATION CONTACT: regulations, to ensure support of (h) Recommending methods for Cade London, Policy Advisor, by email hunting as: streamlining/expediting processing of (preferred) at [email protected]; by 1. An enhancement to foreign wildlife import permits. conservation and survival, and telephone at (703) 358–2584; by U.S. Meeting Agenda mail at USFWS—International Affairs, 2. An effective tool to combat illegal 5275 Leesburg Pike, Falls Church, VA trafficking and poaching. The council will convene to hear and (c) Recommending strategies to 22041; or via the Federal Relay Service discuss the following: benefit the U.S. Fish and Wildlife at 1–800–877–8339. Service’s permit office in receiving 1. Presentations made by conservation SUPPLEMENTARY INFORMATION: In timely country data and information so experts and officials, accordance with the Federal Advisory as to remove barriers that impact 2. Administrative topics, and Committee Act (5 U.S.C. Appendix 2), consulting with range states. 3. Public comment, response, and we, the U.S. Fish and Wildlife Service, (d) Recommending removal of barriers recommendations (if appropriate). announce a public meeting of the to the importation into the United States The final agenda will be posted on the International Wildlife Conservation of legally hunted wildlife. internet at https://www.fws.gov/iwcc. Council (council). The council provides (e) Ongoing review of import advice and recommendations to the suspension/bans and providing Attendance Secretary of the Interior regarding the recommendations that seek to resume If you plan to attend this meeting, you benefits that result from U.S. citizens the legal trade of those items, where must register by close of business on the traveling to foreign nations to engage in appropriate. date listed in Public Input. Please hunting. (f) Reviewing seizure and forfeiture submit your name, time of arrival, email actions/practices, and providing Background address, and phone number to the recommendations for regulations that Policy Advisor for International Affairs Formed in December 2017, the will lead to a reduction of unwarranted (see FOR FURTHER INFORMATION CONTACT). council is an advisory body whose actions. Space is limited and requests to attend duties include but are not limited to: (g) Reviewing the Endangered Species will be accommodated in the order they (a) Developing a plan for public Act’s foreign listed species and are received. engagement and education on the interaction with the Convention on benefits of international hunting. International Trade in Endangered Public Input

You must contact the Policy Advisor for International If you wish to . . . Affairs (see FOR FURTHER INFORMATION CON- TACT) no later than . . .

Attend the meeting ...... March 6, 2019. Submit written information before the meeting for the council to consider during the meet- March 6, 2019. ing. Give an oral presentation during the public comment period ...... March 6, 2019. Attend the meeting and request reasonable accommodations ...... March 4, 2019.

Members of the public requesting Giving an Oral Presentation email address, or other personal reasonable accommodations, such as identifying information in your hearing interpreters, may contact Mr. Requests to address the council comment, you should be aware that during the public comment period will London in writing (preferably by email) your entire comment—including your be accommodated in the order the or via the Federal Relay Service at 1– personal identifying information—may requests are received. Interested parties 800–877–8339 no later than March 4, be made publicly available at any time. must contact the Policy Advisor for 2019. International Affairs in writing While you can request in your comment that we withhold your personal Submitting Written Information (preferably via email; see FOR FURTHER INFORMATION CONTACT). Depending on identifying information from public Interested members of the public may the number of people who want to review, we cannot guarantee that we submit relevant information for the comment and the time available, the will be able to do so. All submissions council to consider during the public amount of time for individual oral from organizations or businesses, and meeting. Written statements must be comments may be limited. Registered from individuals identifying themselves received by the date in the table above speakers who wish to expand upon their as representatives or officials of so that the information may be made oral statements, or those who had organizations or businesses, will be available to the council for wished to speak but could not be made available for public disclosure in consideration prior to the meeting. accommodated on the agenda, may their entirety. submit written statements up to 30 days Submit written statements in the Meeting Minutes following formats: One hard copy with after the meeting. original signature, and/or one electronic Public Disclosure of Comments Detailed minutes of the meeting will copy via email (acceptable file formats be available for public inspection within are Adobe Acrobat PDF, MS Word, MS Written comments we receive become 90 days after the meeting. They will be PowerPoint, or rich text file). part of the administrative record posted on the internet at http:// associated with this action. Before www.fws.gov/iwcc. including your address, phone number,

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Authority: 5 U.S.C. Appendix 2. Klondike, Mineral, Utah Rims, Black Golden Age Passport, the America the Ariel Alvarez, Ridge, and Cameo Cliffs/Hook and Beautiful—The National Parks and Ladder. Fees for overnight use of Federal Recreational Lands—Access Assistant Director, International Affairs. individual campsites will be $25 per Pass (i.e., Interagency Access Pass), or a [FR Doc. 2019–03372 Filed 2–26–19; 8:45 am] night, and group campsites will be $5 Golden Access Passport will be entitled BILLING CODE 4333–15–P per person per night at these to a 50 percent fee reduction on all campgrounds. expanded amenity fees and free The Monticello Field Office will standard amenity fees, except those DEPARTMENT OF THE INTERIOR establish new campground fees at Grand associated with group reservations. Bureau of Land Management Flat, Moki Dugway, Shay Vista, and In December 2004, FLREA was signed Comb Wash Campgrounds. Fees for into law. FLREA provides authority for [LLUT934000–16XL5413AR–L12320000– overnight use of individual campsites the Secretaries of the Interior and FU0000–LVRDUT210000] will be $15 per night, and group Agriculture to establish, modify, charge, campsites will become a flat rate of $65 and collect recreation fees for use of Notice of Intent To Collect New per night at these campgrounds. some Federal recreation lands and Standard and Expanded Amenity The Vernal Field Office will establish waters, and contains specific provisions Recreation Fees at Sites in the Cedar new recreation fees at campgrounds, addressing public involvement in the City, Moab, Monticello and Vernal Field day use sites, and rental cabins. New establishment of recreation fees, Offices, Utah campground fees will be established at including a requirement that a AGENCY: Bureau of Land Management, Pelican Lake, McCoy Flats, Cliff Ridge, Recreation RAC have the opportunity to Interior. and Docs Beach. Fees for overnight use make recommendations regarding ACTION: Notice of intent. of individual campsites will be $10 per establishment of such fees. FLREA also night, and group campsites will be $35 directed the Secretaries of the Interior SUMMARY: Pursuant to applicable group site per night at these and Agriculture to publish six months’ provisions of the Federal Lands campgrounds. Fees for the Split advance notice in the Federal Register Recreation Enhancement Act (FLREA), Mountain Yurt Rentals will be $50 per whenever new recreation fee areas are the Moab, Monticello, Cedar City, and night and the John Jarvie Historic established under their respective Vernal Field Offices of the Bureau of Bunkhouse will be $60 per night. The jurisdictions. Land Management (BLM) are posting a following day use sites will be a no In an effort to meet increasing Notice of Intent to begin collecting fees minimum use fee:* McCoy Flats Day demands for services and increased for 20 campgrounds, 22 day use sites, Use Site, Pelican Lake Day Use Site, maintenance costs, the BLM Utah has and two rental cabins. Dinosaur Trackway Day Use Site, Red developed recreation fee business plans. DATES: All new fees will become Fleet Downhill Flow Day Use Site, The plans cover campgrounds, rental effective August 27, 2019. LaPoint Day Use Site, Dino-Daily Boat cabins, and day use areas within the SUPPLEMENTARY INFORMATION: The BLM Ramp (Put-In), and Dino-Daily Boat Moab, Monticello, Cedar City, and Utah new fee sites are listed below: Ramp (Take-Out). Vernal Field Offices. The plans will The Cedar City Field Office will Under Public Law 108–447, Sec. 803 implement new Standard and Expanded establish new recreation fees at (g) (2) (A/C) of the FLREA, developed Amenity Recreation Fees for developed campgrounds and day use sites. campgrounds and rental cabins qualify campgrounds, group use, rental cabins, Campgrounds include: Rocky Peak, Coal as sites wherein visitors can be charged and day use fees at the sites as indicated Creek, Mineral Mountains, South Creek, an ‘‘Expanded Amenity Recreation above. Shurtz Canyon, Center Cabin, and Fee.’’ Pursuant to FLREA and In response to increasing visitation on Hanging Rock. Fees at campgrounds implementing regulations at 43 CFR BLM-administered lands in Utah, the without water will be $5 per night and Subpart 2933, fees may be charged for new recreation fees will be used to with water will be $10 per night. Group overnight camping, rental of cabins, and replace aging infrastructure at sites and pavilions will have a day use group use reservations where specific campgrounds and day use sites, to or camping fee between $20-$210, amenities and services are provided. increase visitor services, and to improve depending on water and the size of the Specific visitor fees will be identified access to recreational opportunities group. Fees at the Three Peaks Model and posted at each campground, day use across the state. As analyzed in the Field Offices Port and Radio Control Car Track will site, or rental cabin. Under Public Law 108–447, Sec. 803 business plans, the campsite, group use, be $2 per day, with a $25 yearly pass, (f)(4) of the FLREA, all day use sites in rental cabins, and day use fees are and $220 for an exclusive use this Notice qualify as areas wherein consistent with other established fee reservation. There will be 13 day use visitors can be charged a ‘‘Standard sites in the regions including other BLM sites with a no minimum use fee.* Amenity Recreation Fee.’’ Pursuant to administered sites and those managed These day use sites include: Three FLREA and implementing regulations at by the United States Department of Peaks (Mountain Bike site, Equestrian 43 CFR Subpart 2933, fees may be Agriculture—Forest Service, United site, Disc Golf Course, and OHV site), charged for an area where there are Stated Department of the Interior— Rock Corral site, Parowan Gap site, significant opportunities for outdoor National Park Service, and Utah State Southview site, Thunderbird Gardens recreation, has substantial Federal Parks and Recreation. site, Shurtz Canyon site, Fiddlers investments, where fees can be In accordance with the BLM Canyon site, Enoch Bench site, Ironside efficiently collected, and contains recreation fee program policy, the Disc Golf Course, and Parowan Canyon specific amenities and services. Specific business plans explain agency Disc Golf Course. management direction, the need for fee The Moab Field Office will establish visitor fees will be identified and posted collection, and how the fees will be new campground fees at North at each day use site. People holding the America The used at the sites. The BLM notified and * Users pay what they feel their recreation Beautiful—The National Parks and involved the public at each stage of the experience is worth to them specifically for the use Federal Recreational Lands—Senior planning process. A 30-day public of these developed recreation areas. Pass (i.e., Interagency Senior Pass), a comment period on the draft

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campground and day use business plans information concerning the Commission finding no ‘‘extraordinary circumstances was announced on April 12, 2018 may also be obtained by accessing its that warrant denying the motion’’ under through a BLM public news release, internet server (https://www.usitc.gov). Commission Rule 210.21(a)(1), 19 CFR letters mailed to local governments and The public record for this investigation 210.21(a). major stakeholders, by providing may be viewed on the Commission’s No party filed a petition seeking information on the BLM website, and Electronic Docket Information System review of the subject ID. posting written notices at each fee site. (‘‘EDIS’’) (https://edis.usitc.gov). Upon review of the entire record, The draft business plans were publicly Hearing-impaired persons are advised including the ALJ’s ID, the Commission available for review and comment on that information on this matter can be has determined not to review the subject the BLM Utah business plan website obtained by contacting the ID. The investigation is hereby from April 11, 2018 until May 12, 2018. Commission’s TDD terminal, telephone terminated in its entirety. Following FLREA guidelines, the 202–205–1810. The authority for the Commission’s Utah Recreation RAC reviewed and SUPPLEMENTARY INFORMATION: On May determination is contained in Section recommended the new fee proposals at 31, 2018, the Commission instituted this 337 of the Tariff Act of 1930, as their meeting on May 22, 2018. Fee investigation based on a complaint (and amended (19 U.S.C. 1337), and in part amounts will be posted on-site, and amendment and supplement thereto) 210 of the Commission’s Rules of copies of the business plan will be filed by Ultravision. 83 FR 25044 (May Practice and Procedure (19 CFR part available at the Field Offices and the 31, 2018). The amended and 210). BLM Utah State Office, and posted supplemented complaint alleged a By order of the Commission. online. violation of 19 U.S.C. 1337, as amended Issued: February 21, 2019. Authority: 16 U.S.C. 6803 and 43 CFR (‘‘Section 337’’), in the importation into Lisa Barton, 2933. the United States, sale for importation, Secretary to the Commission. or sale within the United States after Edwin L. Roberson, [FR Doc. 2019–03340 Filed 2–26–19; 8:45 am] importation of certain modular LED State Director. display panels and components thereof BILLING CODE 7020–02–P [FR Doc. 2019–03385 Filed 2–26–19; 8:45 am] that infringe the asserted claims of U.S. BILLING CODE 4310–DQ–P Patent Nos. 9,349,306 (‘‘the ’306 patent’’) and 9,916,782 (‘‘the ’782 DEPARTMENT OF JUSTICE patent’’). The Commission’s notice of [OMB Number 1117–0047] INTERNATIONAL TRADE investigation named forty (40) parties as COMMISSION respondents, including but not limited Agency Information Collection to Shanghai Sansi Electronic [Investigation No. 337–TA–1114] Activities; Proposed eCollection, Engineering Co., Ltd. and Sansi North eComments Requested; Extension Certain Modular LED Display Panels America, LLC (collectively ‘‘Sansi’’), the Without Change of a Previously and Components Thereof; Notice of subjects of the present ID. Id.; Order No. Approved Collection; Application for Commission Determination Not To 29 at 2. The Office of Unfair Import Import Quota for Ephedrine, Review an Initial Determination Investigations (‘‘OUII’’) was also named Pseudoephedrine, and Terminating the Investigation in Its as a party to the investigation. Phenylpropanolamine; DEA Form 488 Entirety; Termination of Investigation The Commission determined not to review previous IDs that partially AGENCY: Drug Enforcement AGENCY: U.S. International Trade terminated the investigation with Administration, Department of Justice. Commission. respect to certain patent claims or ACTION: 30-Day notice. ACTION: Notice. certain parties. See, e.g., Comm’n Notice (Nov. 19, 2018); Comm’n Notice (Oct. 2, SUMMARY: The Department of Justice, SUMMARY: Notice is hereby given that 2018); Comm’n Notice (Sept. 28, 2018); Drug Enforcement Administration the U.S. International Trade Comm’n Notice (July 24, 2018). The (DEA), is submitting the following Commission (‘‘Commission’’) has Commission also determined not to information collection request to the determined not to review an initial review previous IDs that found certain Office of Management and Budget for determination (‘‘ID’’) (Order No. 29) respondents in default. See, e.g., review and approval in accordance with terminating the investigation in its Comm’n Notice (Sept. 26, 2018); the Paperwork Reduction Act of 1995. entirety based on withdrawal of the Comm’n Notice (Sept. 18, 2018); The proposed information collection operative complaint by Complainant Comm’n Notice (Sept. 17, 2018). was previously published in the Federal Ultravision Technologies, LLC of Dallas, On November 27, 2018, Ultravision Register, on December 14, 2018, Texas (‘‘Ultravision’’). moved to terminate the investigation in allowing for a 60 day comment period. FOR FURTHER INFORMATION CONTACT: Carl its entirety based on its withdrawal of DATES: Comments are encouraged and P. Bretscher, Office of the General the amended complaint, the operative will be accepted for 30 days until March Counsel, U.S. International Trade complaint in this investigation. Order 29, 2019. Commission, 500 E Street SW, No. 29 at 1. Consistent with FOR FURTHER INFORMATION CONTACT: If Washington, DC 20436, telephone 202– Commission Rule 210.21(a)(1), you have additional comments, 205–2382. Copies of non-confidential Ultravision stated in its motion that it especially on the estimated public documents filed in connection with this had entered into a confidential term burden or associated response time, investigation are or will be available for sheet agreement with Sansi. Id. at 2. suggestions, or need a copy of the inspection during official business On November 30, 2018, OUII filed a proposed information collection hours (8:45 a.m. to 5:15 p.m.) in the response supporting the motion. See id. instrument with instructions or Office of the Secretary, U.S. at 1. No other party filed a response to additional information, please contact International Trade Commission, 500 E the motion. Kathy L. Federico, Diversion Control Street SW, Washington, DC 20436, On January 31, 2019, the ALJ issued Division, Drug Enforcement telephone 202–205–2000. General the subject ID granting the motion and Administration; Mailing Address: 8701

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Morrissette Drive, Springfield, Virginia desires to import the List I chemicals reassessing ongoing statistical projects, 22152; Telephone: (202) 598–6812. Ephedrine, Pseudoephedrine, or across a number of areas of criminal Written comments and/or suggestions Phenylpropanolamine during the next justice, including law enforcement, may also be sent to the Office of calendar year must apply on DEA Form courts, corrections, and victimization. Management and Budget, Office of 488 for an import quota for each such This work will entail developing new Information and Regulatory Affairs, List I chemical. survey instruments, redesigning and/or Attention Department of Justice Desk 5. An estimate of the total number of modifying existing surveys, procuring Officer, Washington, DC 20503, or sent respondents and the amount of time administrative data from state and local to [email protected]. estimated for an average respondent to government entities, and creating or SUPPLEMENTARY INFORMATION: Written respond: The DEA estimates 49 modifying establishment surveys. BJS comments and suggestions from the respondents complete 126 DEA Form will engage in cognitive, pilot, and field public and affected agencies concerning 488 applications annually, and that each test activities to refine instrumentation the proposed collection of information form takes 0.5 hours to complete. and data collection methodologies, are encouraged. Your comments should Respondents complete a separate DEA inform BJS data collection protocols, address one or more of the following Form 488 for each List I chemical for develop accurate estimates of four points: which quota is sought. respondent burden, and minimize respondent burden associated with each —Evaluate whether the proposed 6. An estimate of the total public new or modified data collection. BJS collection of information is necessary burden (in hours) associated with the envisions using a variety of techniques, for the proper performance of the proposed collection: The DEA estimates including (but not limited to): Tests of functions of the agency, including this collection takes a total of 63 annual different types of survey and data whether the information will have burden hours. collection operations; focus groups; practical utility; If additional information is required, cognitive testing; pilot testing; —Evaluate the accuracy of the agency’s please contact: Melody Braswell, exploratory interviews; experiments estimate of the burden of the Department Clearance Officer, United with questionnaire design; and usability proposed collection of information, States Department of Justice, Justice testing of electronic data collection including the validity of the Management Division, Policy and Planning Staff, Two Constitution instruments. methodology and assumptions used; Following standard Office of —Evaluate whether and if so how the Square, 145 N Street NE, Suite 3E.405B, Washington, DC 20530. Management and Budget (OMB) quality, utility, and clarity of the requirements, BJS will submit a change Dated: February 22, 2019. information proposed to be collected request to OMB individually for every can be enhanced; and Melody Braswell, group of data collection activities —Minimize the burden of the collection Department Clearance Officer for PRA, U.S. undertaken under this generic of information on those who are to Department of Justice. clearance. BJS will provide OMB with a respond, including through the use of [FR Doc. 2019–03354 Filed 2–26–19; 8:45 am] copy of the individual instruments or appropriate automated, electronic, BILLING CODE 4410–09–P questionnaires (if one is used), as well mechanical, or other technological as other materials describing the project. collection techniques or other forms DATES: Comments are encouraged and of information technology, e.g., DEPARTMENT OF JUSTICE permitting electronic submission of will be accepted for 30 days until March [OMB Number 1121–0339] responses. 29, 2019. FOR FURTHER INFORMATION CONTACT: If Overview of This Information Agency Information Collection you have additional comments Collection Activities; Proposed eCollection especially on the estimated public eComments Requested; Extension of a burden or associated response time, 1. Type of Information Collection: Currently Approved Collection; Extension of a currently approved suggestions, or need a copy of the Comments Requested: Generic proposed information collection collection. Clearance for Cognitive, Pilot and Field 2. Title of the Form/Collection: instrument with instructions or Studies for Bureau of Justice Statistics additional information, please contact Application for Import Quota for Data Collection Activities Ephedrine, Pseudoephedrine, and Devon Adams, Bureau of Justice Phenylpropanolamine. AGENCY: Bureau of Justice Statistics, Statistics, 810 Seventh Street NW, 3. The agency form number, if any, Department of Justice. Washington, DC 20531 (email: [email protected]; telephone: and the applicable component of the ACTION: 30-Day notice. Department sponsoring the collection: 202–307–0765). DEA Form 488. The applicable SUMMARY: The Department of Justice SUPPLEMENTARY INFORMATION: Written component within the Department of (DOJ), Office of Justice Programs (OJP), comments and suggestions from the Justice is the Drug Enforcement Bureau of Justice Statistics (BJS), public and affected agencies concerning Administration, Diversion Control intends to request approval from the the proposed collection of information Division. Office of Management and Budget are encouraged. Your comments should 4. Affected public who will be asked (OMB) for a generic information address one or more of the following or required to respond, as well as a brief collection clearance that will allow BJS four points: abstract: to conduct a variety of cognitive, pilot, —Evaluate whether the proposed Affected public (Primary): Business or and field test studies. BJS will submit collection of information is necessary other for-profit. the request for review and approval in for the proper performance of the Affected public (Other): Not-for-profit accordance with the Paperwork functions of the Bureau of Justice institutions; Federal, State, local, and Reduction Act of 1995. Statistics, including whether the tribal governments. Over the next three years, BJS information will have practical utility; Abstract: Pursuant to 21 U.S.C. 952 anticipates undertaking a variety of new —Evaluate the accuracy of the agency’s and 21 CFR 1315.34, any person who surveys and data collections, as well as estimate of the burden of the

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proposed collection of information, the estimate to 52,000 to account for the A. Program Description including the validity of the additional efforts. The purpose of the CDRLF program is methodology and assumptions used; (6) An estimate of the total public to assist LICUs in providing basic —Evaluate whether and if so how the burden (in hours) associated with the financial services to their members to quality, utility, and clarity of the collection: The total respondent burden stimulate economic activities in their information to be collected can be for identified and future projects communities. Through the CDRLF enhanced; and covered under this generic clearance program, the NCUA provides financial —Minimize the burden of the collection over the 3-year clearance period is support in the form of loans to LICUs of information on those who are to approximately 25,000 hours. BJS serving predominantly low-income respond, including through the use of originally estimated that 20,000 burden members. These funds help improve appropriate automated, electronic, hours would be needed, but upon and expand the availability of financial mechanical, or other technological reviewing additional projects that were services to these members. The NCUA collection techniques or other forms identified after the 60-day notice was accepts loan applications on a of information technology, e.g., posted, BJS increased the estimate to continuous basis subject to funding permitting electronic submission of 25,000 to account for the additional availability. responses. efforts. The CDRLF program consists of Overview of This Information If additional information is required Congressional appropriations that are Collection contact: Melody Braswell, Department administered by the NCUA. Since its Clearance Officer, United States inception, Congress has appropriated (1) Type of Information Collection: Department of Justice, Justice approximately $13.4 million for Extension of a currently approved Management Division, Policy and revolving loans through the CDRLF collection. Planning Staff, Two Constitution program. The CDRLF’s revolving loan (2) The Title of the Form/Collection: Square, 145 N Street NE, 3E.405A, component received its last Generic Clearance for cognitive, pilot Washington, DC 20530. appropriation in fiscal year 2005 for and field studies for Bureau of Justice $200,000. Approximately $3.6 million Statistics data collection activities. Dated: February 22, 2019. Melody Braswell, will be available for loans under this (3) The agency form number, if any, NOFO as of January 1, 2019. and the applicable component of the Department Clearance Officer for PRA, U.S. Department sponsoring the collection: Department of Justice. 1. Permissible Uses of Loan Funds Form numbers not available for generic [FR Doc. 2019–03355 Filed 2–26–19; 8:45 am] The NCUA may consider requests for clearance. The applicable component BILLING CODE 4410–18–P loan funds for various uses. A non- within the Department of Justice is the exhaustive list of examples of Bureau of Justice Statistics, in the Office permissible uses or projects is defined of Justice Programs. in 12 CFR 705.4. The NCUA may (4) Affected public who will be asked NATIONAL CREDIT UNION consider other proposed uses of loan or required to respond, as well as a brief ADMINISTRATION funds that are not listed if it determines abstract: Administrators or staff of state Community Development Revolving the proposal to be consistent with the and local agencies or programs in the Loan Fund Access for Credit Unions purpose of the CDRLF program. The list relevant fields; administrators or staff of includes the following: non-government agencies or programs Funding Opportunity Title: i. Development of new products or in the relevant fields; individuals; Community Development Revolving services for members, including new or policymakers at various levels of Loan Fund (CDRLF) Loan Program. expanded share draft or credit card government. Catalog of Federal Domestic programs; (5) An estimate of the total number of Assistance (CFDA) Number: 44.002. ii. Partnership arrangements with respondents and the amount of time community-based service organizations estimated for an average respondent to Summary: The National Credit Union or government agencies; respond: We estimate that Administration (NCUA) is issuing this iii. Loan programs, including, but not approximately 50,000 respondents will Notice of Funding Opportunity (NOFO) limited to, microbusiness loans, payday be involved in exploratory, field test, to announce the availability of loan loan alternatives, education loans, and pilot, cognitive, and focus group work awards for low-income designated real estate loans; conducted under this clearance over the credit unions (LICUs) through the iv. Acquisition, expansion, or requested 3-year clearance period. The CDRLF program. The CDRLF program improvement of office space or average response time per respondent serves as a source of financial support equipment, including branch facilities, will be specific to each project covered in the form of loans that better enables ATMs, and electronic banking facilities; under the clearance. Specific estimates LICUs to support the communities in and of the number of respondents and the which they operate. CDRLF loan awards v. Operational programs such as average response time are not known for typically range from $250,000 to security and disaster recovery. each pilot study or development project $500,000. All awards made under this covered under a generic clearance at NOFO are subject to funds availability 2. Authority and Regulations this time. Project specific estimates will and are at the NCUA’s discretion. i. Authority: 12 U.S.C. 1756, be submitted to OMB separately for each Table of Contents 1757(5)(D), and (7)(I), 1766, 1782, 1784, project conducted under this clearance. 1785 and 1786; 12 CFR part 705. BJS originally estimated that 30,000 A. Program Description ii. Regulations: The regulation B. Federal Award Information respondents would be involved in the C. Eligibility Information governing the CDRLF program is found statistical activities covered under this D. Application and Submission Information at 12 CFR part 705. In general, this clearance. Upon reviewing additional E. Application Review Information regulation is used by the NCUA to projects that were identified after the F. Federal Award Administration govern the CDRLF program and set forth 60-day notice was posted, BJS increased G. Federal Awarding Agency Contacts the program requirements. Additional

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regulations related to the CDRLF iv. Demonstrated capability of the are general matching fund requirements. program are found at 12 CFR parts 701 credit union to provide financial and The NCUA, in its sole discretion, may and 741. For the purposes of this NOFO, related services to its members; and amend these requirements depending an Applicant is a Qualifying Credit v. Concurrence from the credit upon its evaluation of the Applicant, Union that submits a complete union’s NCUA regional office and/or the but in no case will the amended Application to the NCUA under the applicable the State Supervisory requirements be greater than the CDRLF program. The NCUA encourages Authority (SSA) for qualifying state- conditions listed below. Applicants to review the regulations, chartered credit unions. a. The amount of matching funds this NOFO, and other program materials 2. Maturity required must generally be in an amount for a complete understanding of the equal to the loan amount. program. Capitalized terms in this CDRLF loans will generally mature in b. Matching funds must be from non- NOFO are defined in the authorizing five years. A credit union may request governmental member or nonmember statutes, regulations, and program a shorter loan period, but in no case will share deposits. materials. the term exceed five years. c. Any loan monies matched by nonmember share deposits are not B. Federal Award Information 3. Interest Rate subject to the 20% limitation on The NCUA expects to award as many The interest rate on CDRLF loans is nonmember deposits defined in 12 CFR qualified credit unions as possible governed by the CDRLF Loan Interest 701.32. through this NOFO, subject to funding Rate Policy. The policy can be found on d. Participating Credit Unions must availability. CDRLF loans are typically the NCUA’s website at https:// maintain the outstanding loan amount made at lower than market interest www.ncua.gov/support-services/credit- in the total amount of share deposits for rates. union-resources-expansion/grants- the duration of the loan. Once the loan Approximately $3.6 million, derived loans/loans. CDRLF loans are generally is repaid, nonmember share deposits from prior-year appropriated and earned offered at a fixed rate for the full term. accepted to meet the matching funds, will be available for qualified 4. Repayment requirement are subject to requirements credit unions beginning January 1, 2019. defined in defined in 12 CFR 701.32. The amount of funding available for All loans must be repaid to the NCUA regardless of how they are accounted for ii. Criteria for Requiring Matching CDRLF loans fluctuate whenever Funds: The NCUA will use the previously scheduled loans are fully by the Participating Credit Union. i. Principal: The entire principal is following criteria to determine whether amortized and/or if Congress makes an to require an Applicant to have appropriation to the CDRLF revolving due at maturity. ii. Interest: Interest is due in semi- matching funds as a condition of its loan component. The NCUA reserves annual payments beginning six months loan. the right to: (i) Award more or less than after the initial distribution of the loan. a. CAMEL Composite Rating the amounts cited above; (ii) fund, in iii. Principal Prepayment: There is no b. CAMEL Management Rating whole or in part, any, all, or none of the penalty for principal prepayment. c. CAMEL Asset Quality Rating applications submitted in response to Principal prepayments may be made as d. Regional Director Concurrence this NOFO; and (iii) reallocate funds often as monthly. e. Net Worth Ratio from the amount that is anticipated to be available under this NOFO to other C. Eligibility Information iii. Documentation of Matching Funds: The NCUA may contact the programs, particularly if the NCUA 1. Eligible Applicants determines that the number of awards matching funds source to discuss the made under this NOFO is fewer than This NOFO is open to credit unions matching funds and the documentation projected. that meet the eligibility requirements that the Applicant has provided. If the The specific terms and conditions defined in 12 CFR part 705. A credit NCUA determines that any portion of governing a CDRLF award will be union must have a low-income the Applicant’s matching funds is established in the loan documents that designation, or equivalent in the case of ineligible under this NOFO, the NCUA, each Participating Credit Union must a Qualifying State-chartered Credit in its sole discretion, may permit the sign prior to disbursement of funds. The Union, in order to participate in the Applicant to offer alternative matching rest of this section contains general CDRLF program. Requirements for funds as a substitute for the ineligible award information regarding loans made obtaining the designation is defined in matching funds. In this case, the through the CDRLF program. 12 CFR 701.34. Applicant must provide acceptable alternative matching funds 1. Loan Amount 2. Matching Funds (if Applicable) documentation within 10 business days The NCUA makes loans based on the At its discretion, the NCUA may of the NCUA’s request. require the Applicant to submit a financial condition of the credit union. 3. Other Eligibility Requirements The applicable regulation does not functional plan to meet the matching provide a maximum limit on loan funds requirement depending on the i. Financial Viability: Applicants must applications for consideration, but in financial condition of the Applicant. meet the underwriting standards practice the NCUA discourages loan The NCUA anticipates that most established by the NCUA, including applications of higher than $500,000 to Applicants will not be required to those pertaining to financial viability, as mitigate risk. There is no minimum loan obtain matching funds. 12 CFR 705.5(g) set forth in the application and defined amount. CDRLF loan awards typically of the NCUA’s regulations describe the in 12 CFR 705.7(c). range from $250,000 to $500,000. The overall requirements for matching ii. Compliance with Past Agreements: amount of the loan will be based on the funds. In evaluating funding requests under following factors: i. Matching Funds Requirements: The this NOFO, the NCUA will consider an i. Funds availability; specific terms and covenants pertaining Applicant’s record of compliance with ii. Credit worthiness of the credit to any matching funds requirement will past agreements. The NCUA, in its sole union; be provided in the loan agreement of the discretion, will determine whether to iii. Financial need; Participating Credit Union. Following, consider an Application from an

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Applicant with a past record of an existing registration with SAM must 2. Evaluation Criteria noncompliance, including any recertify and maintain an active status The evaluation criteria is fully deobligation (i.e. removal of unused annually. The NCUA will not consider described in 12 CFR 705.7(c). The awards) of funds. an Applicant that does not have an NCUA will evaluate each Application a. Default Status: If an Applicant is in active SAM status. Such an Application that receives a substantive review on the default of a previously executed will be deemed incomplete and will be four criteria described in the regulation, agreement with the NCUA, the NCUA declined. this NOFO and the applicable guideline: will not consider an Application for iii. Employer Identification Number: financial performance, compatibility, funding under this NOFO. Each Application must include a valid feasibility, and examination information b. Undisbursed Funds: If an Applicant and current Employer Identification and applicable concurrence. Each is a prior awardee under the CDRLF Number (EIN) issued by the U.S. initiative, due to its structure and program and has unused awards as of Internal Revenue Service (IRS). The impact, have varying degrees of the date of Application, the NCUA will NCUA will not consider an Application evaluation criteria assigned which are request a narrative from the Applicant that does not include a valid and reflected in the guidelines for credit that addresses the reason for its record current EIN. Such an Application will union’s information. of noncompliance. The NCUA, in its be deemed incomplete and will be sole discretion, will determine whether declined. Information on how to obtain 3. Substantive Review the reason is sufficient to proceed with an EIN may be found on the IRS’s The purpose of the substantive review the review of the Application. website at www.irs.gov. is to determine whether the NCUA D. Application and Submission iv. Large Loans: An Applicant should support and fund the loan Information requesting a loan in excess of $300,000 request. During this phase of the review, is required to provide additional the NCUA reviews the credit union’s 1. Application Form narrative comments to support the prior financial and operational The application and related request. In addition, the NCUA may also performance, the collateral offered to documents can be found on the NCUA’s require a business plan. The business securitize the loan (if applicable), and website at https://www.ncua.gov/ plan should: Describe the community’s its longevity in operation. The NCUA services/Pages/resources-expansion/ need for financial products and services reserves the right to contact the grants-loans.aspx. Under this NOFO, and the Applicant’s need for funding; Applicant during its review for the Applications must be submitted online summarize the services, financial purpose of clarifying or confirming at https://www.cybergrants.com/ncua/ products, and services provided by the information contained in the applications. Applicant; describe the Applicant’s Application. If so contacted, the involvement with other entities; Applicant must respond within the time 2. Application Content describe the credit union’s marketing specified by the NCUA or the NCUA, in i. Data Universal Numbering System: strategy to reach members and the its sole discretion, may decline the The Data Universal Numbering System community; and include financial application without further (DUNS) number is a unique nine- projections. consideration. character number used to identify your v. Non-Federally Insured Applicants: organization. The federal government 4. Examination Information and Each Applicant that is a non-federally Applicable Concurrence uses the DUNS number to track how insured, state-chartered credit union federal money is allocated. Applicants must submit additional application The NCUA will not approve an award can obtain a DUNS number by visiting materials. These additional materials are to a credit union for which it’s NCUA the Dun & Bradstreet (D&B) website or more fully described in 12 CFR regional examining office or SSA, if calling 1–866–705–5711 to register or 705.7(b)(3) and in the Application. applicable, indicates it has safety and search for a DUNS number. Registering a. Examination by the NCUA: Non- soundness concerns. If the NCUA for a DUNS number is FREE. The NCUA federally insured, state-chartered credit regional office or SSA identifies a safety will not consider an Application that unions must agree to be examined by and soundness concern, the NCUA, in does not include a valid DUNS number the NCUA. The specific terms and conjunction with the regional office or issued by Dun and Bradstreet (D&B). covenants pertaining to this condition SSA, will assess whether the condition Such an Application will be deemed will be provided in the loan agreement of the Applicant is adequate to incomplete and will be declined. of the Participating Credit Union. undertake the activities for which ii. System for Award Management: All funding is requested, and the Applicants are required by federal law 3. Submission Dates and Times obligations of the loan and its to have an active registration with the The NCUA accepts applications on a conditions. The NCUA, in its sole federal government’s System for Award continuous basis subject to funding discretion, may defer decision on Management (SAM) prior to applying availability. funding an Application until the credit for funding. SAM is a web-based, union’s safety and soundness conditions government-wide application that E. Application Review Information improve. collects, validates, stores, and 1. Eligibility and Completeness Review disseminates business information 5. Funding Selection about the federal government’s trading The NCUA will review each The NCUA will make its funding partners in support of the contract Application to determine whether it is selections based on a consistent scoring awards, grants, and electronic payment complete and that the Applicant meets tier for each Applicant. The NCUA will processes. Applicants can register by the eligibility requirements described in consider the impact of the funding. In visiting www.sam.gov. An active SAM the Regulations and in this NOFO. An addition, the NCUA may consider the account status and CAGE number is incomplete Application or one that does geographic diversity of the Applicants required to apply for the NCUA’s not meet the eligibility requirements in its funding decisions. When loan CDRLF programs. The SAM registration will be declined without further demand is high, Applications will be process is FREE. Applicants that have consideration. ranked based on the aforementioned.

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F. Federal Award Adminsitration G. Federal Award Agency Contacts connection with items for inclusion in guides currently being developed or 1. Federal Award Notice 1. Methods of Contact improvements in all published guides The NCUA will notify each Applicant Further information can be found at are encouraged at any time. of its funding decision by email. https://www.ncua.gov/services/Pages/ ADDRESSES: You may submit comments Applicants that are approved for resources-expansion/grants-loans.aspx. by any of the following methods (unless funding will also receive instructions on For questions email: National Credit this document describes a different how to proceed with disbursement of Union Administration, Office of Credit method for submitting comments on a the award. Union Resources and Expansion at specific subject): [email protected]. • Federal Rulemaking Website: Go to 2. Administrative and National Policy 2. Information Technology Support http://www.regulations.gov and search Requirements for Docket ID: NRC–2019–0061. Address People who have visual or mobility i. Loan Agreement: Each Participating questions about Docket IDs in impairments that prevent them from Regulations.gov to Krupskaya Castellon; Credit Union under this NOFO must using the NCUA’s website should call enter into an Agreement with the NCUA telephone: 301–287–9221; email: (703) 518–6610 for guidance (this is not [email protected]. For before the NCUA will disburse the a toll free number). award funds. The Agreement documents technical questions, contact the include, for example, a promissory note, By the National Credit Union individual(s) listed in the FOR FURTHER loan agreement, repayment schedule, Administration Board on February 21, 2019. INFORMATION CONTACT section of this Gerard Poliquin, document. and security agreement (if applicable). • The Agreement will include the terms Secretary of the Board. Mail comments to: Office of and conditions of funding, including [FR Doc. 2019–03321 Filed 2–26–19; 8:45 am] Administration, Mail Stop: TWFN–7– A60M, U.S. Nuclear Regulatory but not limited to the: (i) award amount; BILLING CODE P (ii) interest rate; (iii) repayment Commission, Washington, DC 20555– requirements; (iv) accounting treatment; 0001, ATTN: Program Management, (v) impact measures; and (vi) reporting NUCLEAR REGULATORY Announcements and Editing Staff. • For additional direction on requirements. COMMISSION obtaining information and submitting ii. Failure to Sign Agreement: The [NRC–2019–0061] comments, see ‘‘Obtaining Information NCUA, in its sole discretion, may and Submitting Comments’’ in the rescind an award if the Applicant fails Seismic Qualification of Electrical and SUPPLEMENTARY INFORMATION section of to sign and return the agreement or any Active Mechanical Equipment and this document. other requested documentation, within Functional Qualification of Active FOR FURTHER INFORMATION CONTACT: Ian the time specified by the NCUA. Mechanical Equipment for Nuclear Tseng, Office of Nuclear Reactor iii. Multiple Disbursements: The Power Plants Regulation, telephone: 301–415–7964, NCUA may determine, in its sole AGENCY: Nuclear Regulatory email: [email protected], and Edward discretion, to fund a loan in multiple Commission. O’Donnell, Office of Nuclear Regulatory disbursements. In such cases, the ACTION: Research, telephone: 301–415–3317, process for disbursement will be Draft regulatory guide; request for comment. email: [email protected]. Both specified by the NCUA in the Loan are staff members of the U.S. Nuclear Agreement. SUMMARY: The U.S. Nuclear Regulatory Regulatory Commission, Washington, 3. Reporting Commission (NRC) is issuing for public DC 20555–0001. comment draft regulatory guide (DG), SUPPLEMENTARY INFORMATION: The reporting requirements are more DG–1328, ‘‘Seismic Qualification of I. Obtaining Information and fully described in 12 CFR 705.9. Electrical and Active Mechanical Submitting Comments Annually, each Participating Credit Equipment and Functional Qualification Union will submit a report to the of Active Mechanical Equipment for A. Obtaining Information NCUA. The report will address the Nuclear Power Plants.’’ This proposed Please refer to Docket ID NRC–2019– Participating Credit Union’s use of the guide, revision 4 to Regulatory Guide 0061 when contacting the NRC about loan funds; the impact of funding; and (RG) 1.100 of the same name, was the availability of information regarding explanation of any failure to meet revised to endorse industry consensus this action. You may obtain publically- objectives for use of proceeds, outcome, standards with certain exceptions and available information related to this or impact. The NCUA, in its sole clarifications. The guide describes action, by any of the following methods: discretion, may modify these methods that the staff of the NRC • Federal Rulemaking Website: Go to requirements. However, such reporting considers acceptable for use in the http://www.regulations.gov and search requirements will be modified only after seismic qualification of electrical and for Docket ID: NRC–2019–0061. notice to affected credit unions. active mechanical equipment and the • NRC’s Agencywide Documents i. Report Form: Applicable credit functional qualification of active Access and Management System unions will be notified regarding the mechanical equipment for nuclear (ADAMS): You may obtain publicly- submission of the report form. A power plants. available documents online in the Participating Credit Union is DATES: Submit comments by April 29, ADAMS Public Documents collection at responsible for timely and complete 2019. Comments received after this date http://www.nrc.gov/reading-rm/ submission of the report. The NCUA will be considered if it is practical to do adams.html. To begin the search, select will use such information to monitor so, but the NRC is able to ensure ‘‘Begin Web-based ADAMS Search.’’ For each Participating Credit Union’s consideration only for comments problems with ADAMS, please contact compliance with the requirements of its received on or before this date. the NRC’s Public Document Room (PDR) loan agreement and to assess the impact Although a time limit is given, reference staff at 1–800–397–4209, 301– of the CDRLF loan. comments and suggestions in 415–4737, or by email to pdr.resource@

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nrc.gov. The DG–1328 is available in clarifications the following industry The meeting will be open to the ADAMS under Accession No. consensus standards: (1) Institute of public and the agenda is as follows: ML18093A675. Electrical and Electronics Engineers I. Call to Order • NRC’s PDR: You may examine and (IEEE) Standard (Std) 344–2013, ‘‘IEEE II. Roll Call purchase copies of public documents at Standard for Seismic Qualification of III. New Business the NRC’s PDR, Room O1–F21, One Equipment for Nuclear Power a. Board Communication with NRRIT White Flint North, 11555 Rockville Generating Stations,’’ (2) IEEE Std b. OEO Reporting Structure Pike, Rockville, Maryland 20852. C37.98–2013, ‘‘Standard Qualification IV. Adjournment Testing of Protective Relays and B. Submitting Comments The person to contact for more Auxiliaries for Nuclear Facilities,’’ and information is Sylvia Zaragoza, Acting Please include Docket ID NRC–2019– (3) American Society of Mechanical Secretary to the Board, Phone No. 312– 0061 in your comment submission. Engineers (ASME) QME–1–2017, 751–4939. The NRC cautions you not to include ‘‘Qualification of Active Mechanical Dated: February 22, 2019. identifying or contact information that Equipment Used in Nuclear Facilities.’’ you do not want to be publicly For The Board. disclosed in your comment submission. III. Backfitting and Issue Finality Sylvia Zaragoza, The NRC posts all comment As discussed in the ‘‘Implementation’’ Acting Secretary to the Board. submissions at http:// section of DG–1328, the NRC has no [FR Doc. 2019–03470 Filed 2–25–19; 11:15 am] www.regulations.gov as well as enters current intention to impose this draft BILLING CODE 7905–01–P the comment submissions into ADAMS. regulatory guide on holders of current The NRC does not routinely edit operating licenses or combined licenses. comment submissions to remove Accordingly, the issuance of this draft identifying or contact information. regulatory guide, if finalized, would not SECURITIES AND EXCHANGE If you are requesting or aggregating constitute ‘‘backfitting’’ as defined in COMMISSION comments from other persons for Title 10 of the Code of Federal submission to the NRC, then you should Regulations (10 CFR) 50.109(a)(1) of the [Release No. 34–85169; File No. SR–CBOE– inform those persons not to include Backfit Rule or be otherwise 2019–012] identifying or contact information that inconsistent with the applicable issue they do not want to be publicly finality provisions in 10 CFR part 52. Self-Regulatory Organizations; Cboe disclosed in their comment submission. This draft regulatory guide may be Exchange, Inc.; Notice of Filing and Your request should state that the NRC applied to applications for operating Immediate Effectiveness of a Proposed does not routinely edit comment licenses and combined licenses Rule Change Relating To Amend its submissions to remove such information docketed by the NRC as of the date of Fees Schedule before making the comment issuance of the final regulatory guide, as submissions available to the public or well as future applications for operating February 21, 2019. entering the comment submissions into licenses and combined licenses Pursuant to Section 19(b)(1) of the ADAMS. submitted after the issuance of the Securities Exchange Act of 1934 (the regulatory guide. Such action would not ‘‘Act’’),1 and Rule 19b–4 thereunder,2 II. Additional Information constitute backfitting as defined in 10 notice is hereby given that on February The NRC is issuing for public CFR 50.109(a)(1) or be otherwise 11, 2019, Cboe Exchange, Inc. (the comment a DG in the NRC’s ‘‘Regulatory inconsistent with the applicable issue ‘‘Exchange’’ or ‘‘Cboe Options’’) filed Guide’’ series. This series was finality provision in 10 CFR part 52, with the Securities and Exchange developed to describe and make inasmuch as such applicants or Commission (the ‘‘Commission’’) the available to the public information potential applicants are not within the proposed rule change as described in regarding methods that are acceptable to scope of entities protected by the Backfit Items I, II, and III below, which Items the NRC staff for implementing specific Rule or the relevant issue finality have been prepared by the Exchange. parts of the NRC’s regulations, provisions in Part 52. The Commission is publishing this notice to solicit comments on the techniques that the staff uses in Dated at Rockville, Maryland, this 21st day evaluating specific issues or postulated of February, 2019. proposed rule change from interested events, and data that the staff needs in For the Nuclear Regulatory Commission. persons. its review of applications for permits Thomas H. Boyce, I. Self-Regulatory Organization’s and licenses. Statement of the Terms of Substance of The DG, entitled, ‘‘Seismic Chief, Regulatory Guidance and Generic Issues Branch, Division of Engineering, Office the Proposed Rule Change Qualification of Electrical and Active of Nuclear Regulatory Research. Mechanical Equipment and Functional Cboe Exchange, Inc. (the ‘‘Exchange’’ [FR Doc. 2019–03338 Filed 2–26–19; 8:45 am] Qualification of Active Mechanical or ‘‘Cboe Options’’) proposes to amend Equipment for Nuclear Power Plants,’’ is BILLING CODE 7590–01–P its fees schedule. The text of the proposed revision 4 of RG 1.100 of the proposed rule change is provided in same name. It is temporarily identified Exhibit 5. by its task number, DG–1328. The guide RAILROAD RETIREMENT BOARD The text of the proposed rule change describes methods that the NRC staff Sunshine Act: Notice of Public Meeting is also available on the Exchange’s considers acceptable for use in the website (http://www.cboe.com/ seismic qualification of electrical and Notice is hereby given that the AboutCBOE/CBOELegalRegulatory active mechanical equipment and the Railroad Retirement Board will hold a Home.aspx), at the Exchange’s Office of functional qualification of active meeting on March 5, 2019, 1:00 p.m. at the Secretary, and at the Commission’s mechanical equipment for nuclear the Board’s meeting room on the 8th Public Reference Room. power plants. floor of its headquarters building, 844 This proposed guide was revised to North Rush Street, Chicago, Illinois, 1 15 U.S.C. 78s(b)(1). endorse, with exceptions and 60611. 2 17 CFR 240.19b–4.

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II. Self-Regulatory Organization’s the most significant aspects of such By way of background, under VIP, the Statement of the Purpose of, and statements. Exchange credits each Trading Permit Statutory Basis for, the Proposed Rule A. Self-Regulatory Organization’s Holder (‘‘TPH’’) the per contract amount Change Statement of the Purpose of, and set forth in the VIP table for Public Customer orders (‘‘C’’ origin code) In its filing with the Commission, the Statutory Basis for, the Proposed Rule Change transmitted by that TPH (with certain Exchange included statements exceptions) which is executed concerning the purpose of and basis for 1. Purpose electronically on the Exchange, the proposed rule change and discussed The Exchange proposes to make a provided the TPH meets certain volume any comments it received on the number of changes to its Fees Schedule, thresholds in a month.4 The Exchange proposed rule change. The text of these effective February 1, 2019.3 proposes to amend the volume statements may be examined at the Volume Incentive Program thresholds for Tiers 4 and 5. The places specified in Item IV below. The proposed change is as follows: Exchange has prepared summaries, set The Exchange first proposes to amend forth in sections A, B, and C below, of the Volume Incentive Program (‘‘VIP’’).

Percentage Thresholds of National Customer Volume in All Underlying Symbols Excluding Underlying Symbol List A, Sector In- dexes, DJX, MXEA, MXEF, MNX, NDX, XSP and XSPAM Tier (Monthly) Current Proposed

1 ...... 0.00%–0.75% ...... No change. 2 ...... Above 0.75% to 2.00% ...... No change. 3 ...... Above 2.00% to 3.00% ...... No change. 4 ...... Above 3.00% to 4.00% ...... Above 3.00% to 3.75%. 5 ...... Above 4.00% ...... Above 3.75%.

The purpose of these changes is to transaction fees for all Customer following volume: (i) Volume resulting adjust for current volume trends while electronic executions that add liquidity from executions against a Customer’s maintaining an incremental incentive (i.e., ‘‘Maker’’ transactions). The resting orders and/or quotes and (ii) for TPHs to strive for the highest tier Exchange will charge $0.18 per contract volume resulting from a Customer’s level. on all Customer electronic executions if responses to auctions (i.e., HAL, HALO the original order size is 100 contracts and COA responses). The Exchange RUT Transaction Fee or greater and if it removes liquidity notes it similarly has clarified what The Exchange next proposes to (i.e., ‘‘Taker’’ transactions) in ETF and volume is considered Taker versus increase the transaction fee for Market- ETN options. Maker in Footnote 44 of the Fees Maker orders in RUT options. Currently, The Exchange also proposes to amend Schedule which relates to the Liquidity the Exchange charges $0.20 per contract Footnote 9 to make corresponding Provider Sliding Scale Adjustment for Market-Makers’ RUT orders. The changes to the footnote text regarding Table.6 Exchange proposes to increase the the proposed change described above SPXW Priority Surcharge transaction rate to $0.30 per contract. and also explicitly make clear what The Exchange notes the proposed rate transactions the Exchange would The Exchange proposes to amend the change is less than the amount assessed consider to be Maker (and therefore Customer Priority Surcharge for SPXW for similar transactions on another have no fees assessed) and Taker (and (‘‘SPXW Surcharge’’). Currently, the Exchange and is also similar to Market- therefore be assessed $0.18 per contract, Exchange assesses a SPXW Surcharge of Maker fees assessed for other if equal to or greater than 100 contracts). $0.10 per contract for Customer orders proprietary products.5 Particularly, the Exchange proposes to in SPXW that are executed provide that the Taker fee applies to electronically (with some exceptions).7 ETF and ETN Options Transaction Fee electronic volume only, but is not The Exchange proposes to extend the The Exchange proposes to amend the applied to the following: (i) Trades on SPXW Surcharge to all market fees for electronic Customer orders the open and (ii) QCC orders. The Taker participants other than Market-Makers, (origin code ‘‘C’’) for ETF and ETN fees would apply to the following which aligns its applicability to the options. Currently the Exchange waives volume: (i) Volume resulting from a same market participants as the SPX transaction fees for (1) all customer Customer’s orders and/or quotes Hybrid Execution Surcharge. orders executed in open outcry or AIM, removing other market participants’ In connection with the proposed and (2) customer electronic executions resting orders and/or quotes and (ii) change, and in order to make the Fees of 249 contracts or less in ETF and ETN volume resulting from a Customer’s Schedule easier to read, the Exchange options in Penny and Non-Penny primary orders in (i) unpaired auctions proposes to relocate the SPXW classes. The Exchange proposes to (i.e., Hybrid Agency Liaison (‘‘HAL’’) Surcharge to its own line item grouped amend the transaction fee for Customer and HAL on the Open (‘‘HALO’’)) and together with the SPX Hybrid Execution electronic executions in ETF and ETN (ii) Complex Order Auction (COA)). The Surcharge and rename the SPX Hybrid options such that it will waive the Maker fee waiver would apply to the Execution Surcharge, such that both

3 The Exchange initially filed the proposed fee Exchange withdrew that filing and submitted this 5 See Cboe BZX Fees Schedule. See also Cboe changes on February 1, 2019 (SR–CBOE–2019–009). filing. Options Fees Schedule, SPX Liquidity Provider On business date February 4, 2019, the Exchange 4 See Cboe Options Fees Schedule, Volume Sliding Scale. withdrew that filing and submitted SR–CBOE– Incentive Program. 6 See Cboe Options Fees Schedule, Footnote 44. 2019–010. On business date February 11, 2019, the 7 See Cboe Options Fees Schedule, Footnote 31.

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surcharges will be grouped together as Exchange notes that in October 2019, it believes the waiver encourages Firms to the ‘‘Execution Surcharge’’ (one for SPX is migrating the current Cboe Options do so and as such, proposes to renew and one for SPXW). The Exchange also trading platform onto new technology the waiver of the surcharge through June proposes to (i) update Footnote 31 of the and in connection with such migration, 30, 2019, at which time the Exchange Fees Schedule, which is currently is anticipating a new Trading Permit will again reevaluate whether the appended to the SPXW Surcharge, to structure. As such, the Exchange waiver has continued to prompt Firms eliminate references to the SPXW proposes to provide that any to close and roll over these positions. Customer Priority Surcharge and (ii) in commitment to Trading Permits under Accordingly, the Exchange proposes to its place, append Footnote 21 to the the TP Sliding Scales shall be in place delete the reference to the current SPXW surcharge (and add references to through September 2019, instead of the waiver period of December 31, 2018 ‘‘SPXW Execution Surcharge’’ in calendar year, and proposes to update from the Fees Schedule and replace it Footnote 21). The Exchange also Footnotes 24 and 25 accordingly. with June 30, 2019. proposes to amend Footnote 21 to Facility Fees eliminate the second and third Global Trading Hour Fees surcharge exemptions listed relating to The Exchange next proposes to amend In order to promote and encourage Market-Maker transactions. Particularly, certain facility fees. First, the Exchange trading during the Global Trading Hours Footnote 21 provides, among other proposes to increase fees for access (‘‘GTH’’) session, the Exchange things, that the SPX Execution badges. Currently, the Exchange charges previously waived GTH Trading Permit Surcharge will not apply to (i) $120 per Floor Manager Badge and $60 and Bandwidth Packet fees for one (1) executions by Market-Makers against per Clerk Badge. The Exchange proposes of each initial Trading Permits and one orders in the complex order auction to increase the Floor Manager Badge to (1) of each initial Bandwidth Packet, per (COA) and Simple Auction Liaison $130 per badge and the Clerk Badge to affiliated TPH. The Exchange notes that $70 per badge. The Exchange notes (SAL) systems in their appointed classes waiver expired December 31, 2018. The these fees have not been raised in and (ii) executions by Market-Makers Exchange also waived fees through several years. The Exchange also against orders in the electronic book, December 31, 2018 for a CMI and FIX proposes to eliminate the following Hybrid Agency Liaison (HAL) and the login ID if the CMI and/or FIX login ID Badge-related fees which are assessed complex order book in their appointed is related to a waived GTH Trading per occurrence: Badge Issuance, classes. The Exchange notes that since Permit and/or waived Bandwidth Replacement Badge, Unreturned neither the SPX Execution Surcharge packet. In order to continue to promote Security Access Badge, Temporary nor SPXW Execution Surcharge, even as trading during GTH, the Exchange Badge—Non Trading Permit Holder, amended, apply to Market-Maker wishes to renew these waivers through Temporary Badge—Trading Permit orders, this language is moot and June 30, 2019. obsolete. The Exchange therefore Holder, and Unreturned Temporary proposes to eliminate it from the Fees Badge. RLG, RLV, RUI, AWDE, FTEM, FXTM Schedule to avoid confusion. The The Exchange is also proposing to and UKXM Transaction Fees Exchange notes that the remaining two eliminate the fees relating to coat room In order to promote and encourage exemptions set forth under Footnote 21 services, as such service will be trading of seven FTSE Russell Index of the Fees Schedule currently apply to eliminated as of February 1, 2019. products (i.e., Russell 1000 Growth both the SPX and SPXW Execution Particularly, the $25 per month for Coat Index (‘‘RLG’’), Russell 1000 Value Surcharges. Room Checking and $15 per Occurrence for Lost or Damaged Trading Jackets fees Index (‘‘RLV’’), Russell 1000 Index Supplemental VIX Total Firm Discount will be eliminated. (‘‘RUI’’), FTSE Developed Europe Index The Exchange next proposes to (‘‘AWDE’’), FTSE Emerging Markets VIX and Sector License Index Surcharge eliminate its Supplemental VIX Total Index (‘‘FTEM’’), China 50 Index Firm Volume Discount (‘‘Supplemental The Exchange proposes to extend the ‘‘(FXTM’’) and FTSE 100 Index VIX Discount’’). The Supplemental VIX current waiver of the VIX and Sector (‘‘UKXM’’)), the Exchange had waived Discount allows VIX options transaction Index License Surcharge of $0.10 per all transaction fees (including the Floor fees for Clearing TPHs’ (including its contract for Clearing Trading Permit Brokerage Fee, Index License Surcharge Non-TPH Affiliates) proprietary orders Holder Proprietary (‘‘Firm’’) (origin and CFLEX Surcharge Fee) for each of to be discounted provided a Clearing codes ‘‘F’’ or ‘‘L’’) VIX and Sector Index these products. This waiver expired TPH reaches certain VIX firm volume orders that have a premium of $0.10 or December 31, 2018. To continue percentage thresholds during a calendar lower and have series with an promoting the trading of these options month. The Exchange no longer wishes expiration of seven (7) calendar days or classes, the Exchange proposes to renew to offer the Supplement VIX Discount less. The Exchange adopted the current the fee waiver through June 30, 2019. program and therefore proposes to waiver to reduce transaction costs on UKXM DPM Payment eliminate it from its Fees Schedule. expiring, low-priced VIX options as well as Sector Index options, which the The Exchange previously offered a Trading Permits Sliding Scale Program Exchange believed would encourage compensation plan to the Designated The Exchange proposes to amend its Firms to seek to close and/or roll over Primary Market-Maker(s) (‘‘DPM(s)’’) Market Maker and Floor Broker Trading such positions, including facilitating appointed in UKXM to offset its DPM Permit Sliding Scale Programs (‘‘TP customers to do so, in order to free up costs. Specifically, the Fees Schedule Sliding Scales’’). The TP Sliding Scales capital and encourage additional provides that DPM(s) appointed for an allow Market Makers and Floor Brokers trading. The Exchange had proposed to entire month in UKXM will receive a to pay reduced rates for their Trading waive the surcharge through December payment of $5,000 per month, through Permits if they commit in advance to a 31, 2018, at which time the Exchange December 31, 2018. The Exchange specific tier that includes a minimum had stated that it would evaluate proposes to renew the compensation number of eligible Market Maker and whether the waiver has in fact prompted plan through June 30, 2019 to continue Floor Broker Trading Permits, Firms to close and roll over these to incentivize the DPM(s) to continue to respectively, for each calendar year. The positions as intended. The Exchange serve as a DPM in this product.

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Footnote 42 References which provides increasingly higher surcharge amount is not changing. The The Exchange lastly proposes to credits. The Exchange believes it is Exchange believes it’s equitable and not delete all appended references to equitable and not unfairly unfairly discriminatory to apply the Footnote 42. The Exchange notes that discriminatory because the proposed SPXW Execution Surcharge to all effective, July 2, 2018, the Exchange changes to the qualifying volume market participants other than Market- eliminated the FLEX Asian & Cliquet thresholds apply to all TPHs uniformly. Makers because Market-Makers, unlike FLEX Trader Incentive Program, which The Exchange believes increasing the other market participants, take on a program was described in Footnote 42 fee for Market-Maker executions in RUT number of obligations, including of the Fees Schedule.8 Although, the is reasonable because the proposed rate quoting obligations, that other market program was eliminated (along with the change is less than the amount assessed participants do not have. The Exchange contents of Footnote 42), the Exchange for similar transactions on another believes the proposed updates to inadvertently omitted to delete Exchange and is also similar to Market- Footnotes 21 and 31 in connection with Maker fees assessed for other the proposed SPXW Execution appended references to Footnote 42 in 12 the Fees Schedule. The Exchange proprietary products. The Exchange Surcharge change provides clarity in the proposes to correct that oversight and believes that this proposed change is Fees Schedule and alleviates potential delete such references, which will avoid also equitable and not unfairly confusion, thereby removing potential confusion. discriminatory because the proposed impediments to and perfecting the changes will apply equally to all mechanism of a free and open market 2. Statutory Basis Market-Makers uniformly. and a national market system, and, in The Exchange believes the proposed The Exchange believes the proposed general, protecting investors and the rule change is consistent with the rule change to waive fees for Customer public interest. Securities Exchange Act of 1934 (the electronic executions in ETF and ETN The Exchange believes it’s reasonable ‘‘Act’’) and the rules and regulations options that add liquidity, but assess to eliminate the Supplemental VIX thereunder applicable to the Exchange $0.18 per contract for such executions Discount because it is not required to and, in particular, the requirements of that remove liquidity and are of an order provide such a discount. Additionally, Section 6(b) of the Act.9 Specifically, size of 100 contracts or greater, is the Exchange notes that Clearing TPHs the Exchange believes the proposed rule reasonable because Customers will pay have other opportunities to obtain a change is consistent with the Section nothing for these executions where they discount on VIX executions, such as via 6(b)(5) 10 requirements that the rules of add liquidity and will be paying the the Cboe Proprietary Product Sliding an exchange be designed to prevent same rate as is currently provided for Scale programs. The Exchange believes fraudulent and manipulative acts and under the fees schedule (i.e., $0.18 per it’s equitable and not unfairly practices, to promote just and equitable contract) when they remove liquidity. discriminatory because it applies principles of trade, to foster cooperation The Exchange believes the proposed uniformly to all Clearing TPHs. The Exchange believes amending the and coordination with persons engaged rule change is equitable and not unfairly TP Sliding Scales to provide that any in regulating, clearing, settling, discriminatory because the proposed commitment to Trading Permits under processing information with respect to, rule change applies to all Customers the TP Sliding Scales shall be in place and facilitating transactions in equally. Additionally, the proposed rule change is designed to encourage posted through September 2019, instead of the securities, to remove impediments to calendar year, is reasonable because the and perfect the mechanism of a free and liquidity to the Exchange. Particularly, the Exchange believes it’s equitable and discounted Trading Permit rates and tier open market and a national market levels are not changing. The Exchange system, and, in general, to protect not unfairly discriminatory to assess this fee for orders that remove liquidity believes this proposed rule change is investors and the public interest. reasonable, equitable and not unfairly Additionally, the Exchange believes the and not orders that add liquidity because the Exchange wants to discriminatory because, as discussed proposed rule change is consistent with above, the Exchange anticipates Section 6(b)(4) of the Act,11 which encourage market participation and price improvement. The Exchange modifying the current Trading Permit requires that Exchange rules provide for structure upon the migration of its the equitable allocation of reasonable believes the proposed updates to Footnote 9 provide clarity in the Fees trading system in October 2019. The dues, fees, and other charges among its Exchange notes that through September Trading Permit Holders and other Schedule and alleviates potential confusion as to what volume would be 2019, Floor Brokers and Market-Makers persons using its facilities. are still eligible to take advantage of First, the Exchange believes adjusting considered ‘‘Taker’’ vs ‘‘Maker’’ for purposes of this fee. The alleviation of these sliding scale programs, which the VIP volume thresholds for Tiers 4 offer discounts on Trading Permits. and 5 is reasonable because it adjusts for confusion removes impediments to and perfects the mechanism of a free and Additionally, the proposed rule change the current volume trends and makes it applies to all Markets-Makers and Floor slightly easier for TPHs to meet the open market and a national market system, and, in general, protects Brokers uniformly. qualifying criteria to achieve the highest The Exchange believes the proposed investors and the public interest. tier, Tier 5. The Exchange also notes rule change to eliminate per occurrence that the credits offered under VIP are The Exchange believes extending the applicability of the SPXW Execution badge issuance fees and coat room not changing. Rather, the rebalance of services fees are reasonable as TPHs will Surcharge to all market participants tiers still allows the Exchange to no longer be subject to these fees. other than Market-Makers is reasonable maintain an incremental incentive for Additionally, with respect to the coat as it aligns the applicability of the TPHs to strive for the highest tier level, room service fees, the Exchange notes surcharge to the same market such services will be eliminated as of 8 participants subject to the SPX Hybrid See Securities Exchange Act Release No. 83587 February 1, 2019. Additionally, the (July 3, 2018), 83 FR 31810 (July 9, 2018) (SR– Execution Surcharge and because the CBOE–2018–051). proposed elimination applies to all 9 15 U.S.C. 78f(b). 12 See Cboe BZX Fees Schedule. See also Cboe TPHs. The Exchange believes the 10 15 U.S.C. 78f(b)(5). Options Fees Schedule, SPX Liquidity Provider proposed increases to the Floor Manager 11 15 U.S.C. 78f(b)(4). Sliding Scale. and Clerk Badge fees are reasonable

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because they are a moderate increase, Surcharge and CFLEX Surcharge Fee, that is not necessary or appropriate in these fees have not been increased in because the respective fees are being furtherance of the purposes of the Act several years, and other badge-related waived in their entirety, which because the proposed changes are fees are being eliminated. Additionally promotes and encourages trading of intended to promote competition and the proposed fee increases applies to all these products which are still relatively better improve the Exchange’s TPHs who need to avail themselves of new and applies to all TPHs. competitive position and make Cboe these badges. The Exchange believes that it is Options a more attractive marketplace The Exchange believes it’s reasonable, equitable and not unfairly in order to encourage market appropriate to continue to waive the discriminatory to renew the participants to bring increased volume VIX and Sector Index License Surcharge compensation plan to the DPM to the Exchange (while still covering for Clearing Trading Permit Holder appointed in UKXM to continue to costs as necessary). Further, the Proprietary Sector Index and VIX orders offset its ongoing DPM costs and proposed changes only affect trading on that have a premium of $0.10 or lower continue to incentivize the DPM to the Exchange. To the extent that the and have series with an expiration of 7 continue to serve as a DPM in this proposed changes make Cboe Options a calendar days or less because the product. more attractive marketplace for market Exchange wants to continue Lastly, the Exchange believes participants at other exchanges, such encouraging Firms to roll and close over eliminating references to Footnote 42 market participants are welcome to these positions. Particularly, the (which footnote does not currently become Cboe Options market Exchange believes it’s reasonable to contain any language and is obsolete) participants. waive the entire $0.10 per contract alleviates potential confusion. The surcharge because without the waiver of alleviation of confusion removes C. Self-Regulatory Organization’s the surcharge, firms are less likely to impediments to and perfects the Statement on Comments on the engage in these transactions, as opposed mechanism of a free and open market Proposed Rule Change Received From to other VIX and Sector Index and a national market system, and, in Members, Participants, or Others transactions, due to the associated general, protects investors and the The Exchange neither solicited nor transaction costs. The Exchange believes public interest. received comments on the proposed it’s equitable and not unfairly B. Self-Regulatory Organization’s rule change. discriminatory to limit the waiver to Statement on Burden on Competition Clearing Trading Permit Holder III. Date of Effectiveness of the Proprietary orders because they The Exchange does not believe that Proposed Rule Change and Timing for contribute capital to facilitate the the proposed rule changes will impose Commission Action any burden on competition that are not execution of Sector Index customer The foregoing rule change has become orders and VIX customer orders with a necessary or appropriate in furtherance of the purposes of the Act. The effective pursuant to Section 19(b)(3)(A) premium of $0.10 or lower and series of the Act 13 and paragraph (f) of Rule with an expiration of 7 calendar days or Exchange does not believe that the 19b–4 14 thereunder. At any time within less. Finally, the Exchange believes it’s proposed rule change will impose any 60 days of the filing of the proposed rule reasonable, equitable and not unfairly burden on intramarket competition that change, the Commission summarily may discriminatory to provide that the is not necessary or appropriate in temporarily suspend such rule change if surcharge will be waived through June furtherance of the purposes of the Act it appears to the Commission that such 30, 2019, as it gives the Exchange because, while different fees and rebates action is necessary or appropriate in the additional time to evaluate if the waiver are assessed to different market public interest, for the protection of is continuing to have the desired effect participants in some circumstances, investors, or otherwise in furtherance of of encouraging these transactions. these different market participants have The Exchange believes renewing the different obligations and different the purposes of the Act. If the waiver of GTH Trading Permit and circumstances. For example, Clearing Commission takes such action, the Bandwidth Packet fees for one of each TPHs have clearing obligations that Commission will institute proceedings type of Trading Permit and Bandwidth other market participants do not have. to determine whether the proposed rule Packet, per affiliated TPH through June Market-Makers have quoting obligations change should be approved or 30, 2019 is reasonable, equitable and not that other market participants do not disapproved. unfairly discriminatory, because those have. There is also a history in the IV. Solicitation of Comments respective fees would be waived in their options markets of providing entirety, which promotes and preferential treatment to customers, as Interested persons are invited to encourages trading during the GTH they often do not have as sophisticated submit written data, views, and session and applies to all GTH TPHs. trading operations and systems as other arguments concerning the foregoing, The Exchange believes it’s also market participants, which often makes including whether the proposed rule reasonable, equitable and not unfairly other market participants prefer to trade change is consistent with the Act. discriminatory to waive fees for Login with customers. Further, the Exchange Comments may be submitted by any of IDs related to waived Trading Permits fees and rebates, both current and those the following methods: and/or Bandwidth Packets in order to proposed to be changed, are intended to Electronic Comments promote and encourage ongoing encourage market participants to bring participation in GTH and also applies to increased volume to the Exchange • Use the Commission’s internet all GTH TPHs. (which benefits all market participants), comment form (http://www.sec.gov/ The Exchange believes it is while still covering Exchange costs rules/sro.shtml); or reasonable, equitable and not unfairly (including those associated with the • Send an email to rule-comments@ discriminatory to renew the waiver of upgrading and maintenance of Exchange sec.gov. Please include File Number SR– all transaction fees for RLG, RLV, RUI, systems). CBOE–2019–012 on the subject line. AWDE, FTEM, FXTM and UKXM The Exchange does not believe that transactions, including the Floor the proposed rule changes will impose 13 15 U.S.C. 78s(b)(3)(A). Brokerage fee, the License Index any burden on intermarket competition 14 17 CFR 240.19b–4(f).

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Paper Comments 100 F Street NE, Washington, DC Please direct your written comment to • Send paper comments in triplicate 20549–2736. Charles Riddle, Acting Director/Chief to Secretary, Securities and Exchange Extension: Information Officer, Securities and Commission, 100 F Street NE, Form C Exchange Commission, c/o Candace Washington, DC 20549–1090. Kenner, 100 F Street NE, Washington, Notice is hereby given that, pursuant DC 20549 or send an email to: PRA_ All submissions should refer to File to the Paperwork Reduction Act of 1995 [email protected]. Number SR–CBOE–2019–012. This file (44 U.S.C. 3501 et seq.), the Securities Dated: February 22, 2019. number should be included on the and Exchange Commission subject line if email is used. To help the (‘‘Commission’’) is soliciting comments Eduardo A. Aleman, Commission process and review your on the collection of information Deputy Secretary. comments more efficiently, please use summarized below. The Commission [FR Doc. 2019–03394 Filed 2–26–19; 8:45 am] only one method. The Commission will plans to submit this existing collection BILLING CODE 8011–01–P post all comments on the Commission’s of information to the Office of internet website (http://www.sec.gov/ Management and Budget for extension rules/sro.shtml). Copies of the and approval. SECURITIES AND EXCHANGE submission, all subsequent COMMISSION Form C (17 CFR 239.900) is used by amendments, all written statements issuers offering securities in reliance on [SEC File No. 270–440, OMB Control No. with respect to the proposed rule the crowdfunding exemption in Section 3235–0496] change that are filed with the 4(a)(6) (15 U.S.C. 77d(a)(6)) of the Commission, and all written Proposed Collection; Comment Securities Act of 1933 (‘‘Securities Act’’) communications relating to the Request (15 U.S.C. 77a et seq.) Form C will also proposed rule change between the be used by issuers that have completed Upon Written Request, Copies Available Commission and any person, other than transactions in reliance on Section From: Securities and Exchange those that may be withheld from the 4(a)(6) to file annual reports or to Commission, Office of FOIA Services, public in accordance with the provide notice of the termination of 100 F Street NE, Washington, DC provisions of 5 U.S.C. 552, will be reporting obligations.. The information 20549–2736. available for website viewing and collected is intended to create a printing in the Commission’s Public Extension: framework for the filing and disclosure Reference Room, 100 F Street NE, Appendix F to Rule 15c3–1 requirements of Title III Section 4A of Washington, DC 20549 on official Notice is hereby given that pursuant the Jumpstart Our Business Startups Act business days between the hours of to the Paperwork Reduction Act of 1995 (Pub. L. 112–106, 126 Stat. 306) to 10:00 a.m. and 3:00 p.m. Copies of the (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the implement the exemption from filing also will be available for Securities and Exchange Commission Securities Act registration for offerings inspection and copying at the principal (‘‘Commission’’) is soliciting comments made in reliance on Section 4(a)(6). office of the Exchange. All comments on the existing collection of information Form C takes approximately 48.96969 received will be posted without change. provided for in appendix F to Rule hours per response and is filed by Persons submitting comments are 15c3–1 (‘‘Appendix F’’ or ‘‘Rule 15c3– approximately 5,852 respondents. We cautioned that we do not redact or edit 1f’’) (17 CFR 240.15c3–1f) under the estimate that 75% of the 48.96969 hours personal identifying information from Securities Exchange Act of 1934 (15 per response (36.72727 hours) is comment submissions. You should U.S.C. 78a et seq.). The Commission prepared by the issuer for a total annual submit only information that you wish plans to submit this existing collection reporting burden of 214,928 hours to make available publicly. All of information to the Office of (36.72727 hours per response × 5,852 submissions should refer to File Management and Budget (‘‘OMB’’) for responses). Number SR–CBOE–2019–012 and extension and approval. should be submitted on or before March Written comments are invited on: (a) Under appendix F, a class of broker- 20, 2019. Whether this proposed collection of dealers known as over-the counter information is necessary for the proper (‘‘OTC’’) derivatives dealers may apply For the Commission, by the Division of performance of the functions of the to the Commission for authorization to Trading and Markets, pursuant to delegated agency, including whether the authority.15 compute net capital charges for market information will have practical utility; Eduardo A. Aleman, and credit risk in accordance with (b) the accuracy of the agency’s estimate Deputy Secretary. appendix F in lieu of computing of the burden imposed by the collection securities haircuts under paragraph [FR Doc. 2019–03332 Filed 2–26–19; 8:45 am] of information; (c) ways to enhance the (c)(2)(vi) of Exchange Act Rule 15c3–1. BILLING CODE 8011–01–P quality, utility, and clarity of the At present, three OTC derivatives information collected; and (d) ways to dealers have been approved to use minimize the burden of the collection of SECURITIES AND EXCHANGE appendix F. Two OTC derivatives information on respondents, including COMMISSION dealers have applied to use appendix F, through the use of automated collection and the staff expects that one additional [SEC File No. 270–658 OMB Control No. techniques or other forms of information OTC derivatives dealer will apply to use 3235–0716] technology. Consideration will be given appendix F during the next three years. to comments and suggestions submitted The Commission estimates that the Proposed Collection; Comment in writing within 60 days of this three approved OTC derivatives dealers Request publication. and two OTC derivatives dealers with Upon Written Request Copies Available An agency may not conduct or pending applications (if approved) will From: Securities and Exchange sponsor, and a person is not required to spend an average of approximately Commission, Office of FOIA Services, respond to, a collection of information 1,000 hours each per year reporting unless it displays a currently valid information concerning their VAR 15 17 CFR 200.30–3(a)(12). control number. models and internal risk management

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systems, for an annual burden of 5,000 SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s hours. The Commission estimates that, COMMISSION Statement of the Purpose of, and the on average, a firm initially will take Statutory Basis for, the Proposed Rule approximately 1,000 hours to prepare an [Release No. 34–85170; File No. SR– Change application to use appendix F. For the NYSEArca-2019–04] 1. Purpose one firm expected to apply, this would NYSE Arca Rule 5.2–E(j)(3) permits result in an annual burden of 333 hours Self-Regulatory Organizations; NYSE the Exchange to list a series of Units per year amortized over three years. For Arca, Inc.; Notice of Filing of Proposed based on an index or portfolio of Rule Change Amending NYSE Arca the two years after it registers, the new underlying securities. Currently, Rule Rule 5.2–E(j)(3) To Adopt Generic registrant would spend an average of 5.2–E(j)(3) includes generic listing Listing Standards for Investment approximately 1,000 hours each year standards for Units based on an index reporting information concerning its Company Units Based on an Index of or portfolio of equity or fixed income VAR model and internal risk Municipal Bond Securities securities or a combination thereof. The management system, for an annual February 21, 2019. Exchange proposes to amend Rule 5.2– burden of 667 hours per year amortized E(j)(3) to add a new Commentary .02A over 3 years. Pursuant to Section 19(b)(1) 1 of the to provide generic listing standards for Written comments are invited on: (a) Securities Exchange Act of 1934 (the Units based on an index or portfolio of 2 3 Whether the proposed collection of ‘‘Act’’) and Rule 19b–4 thereunder, Municipal Securities.4 information is necessary for the proper notice is hereby given that, on February An index of Municipal Securities performance of the functions of the 8, 2019, NYSE Arca, Inc. (the typically does not meet the generic Commission, including whether the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with listing requirements for Units based on 5 information shall have practical utility; the Securities and Exchange an index of fixed-income securities. Commission (the ‘‘Commission’’) the Nonetheless, the Commission has (b) the accuracy of the Commission’s proposed rule change as described in previously approved proposed rule estimates of the burden of the proposed Items I, II, and III below, which Items changes relating to listing and trading collection of information; (c) ways to have been prepared by the self- on the Exchange of Units based on an enhance the quality, utility, and clarity regulatory organization. The index of Municipal Securities.6 Given of the information collected; and (d) Commission is publishing this notice to ways to minimize the burden of the 4 solicit comments on the proposed rule The term ‘‘Municipal Securities’’ has the collection of information on definition given to it in Section 3(a)(29) of the change from interested persons. respondents, including through the use Securities Exchange Act of 1934. 5 See Commentary .02(a)(2) to NYSE Arca Rule of automated collection techniques or I. Self-Regulatory Organization’s 5.2–E(j)(3). Municipal Securities are typically other forms of information technology. Statement of the Terms of Substance of issued in with individual maturities of relatively Consideration will be given to the Proposed Rule Change small size, although they generally are constituents comments and suggestions submitted in of a much larger municipal bond offering. Therefore, an index of Municipal Securities will writing within 60 days of this The Exchange proposes to amend NYSE Arca Rule 5.2–E(j)(3) (‘‘Rule 5.2– typically be unable to satisfy the requirement that publication. component fixed income securities that, in the E(j)(3)’’) to adopt generic listing aggregate, account for at least 75% of the weight of An agency may not conduct or standards for Investment Company the index each shall have a minimum principal sponsor, and a person is not required to Units (‘‘Units’’) based on an index of amount outstanding of $100 million or more. 6 respond to, a collection of information municipal bond securities. The See Securities Exchange Act Release Nos. 67985 under the PRA unless it displays a (October 4, 2012), 77 FR 61804 (October 11, 2012) proposed change is available on the (SR–NYSEArca–2012–92) (order approving currently valid OMB control number. Exchange’s website at www.nyse.com, at proposed rule change relating to the listing and Please direct your written comments the principal office of the Exchange, and trading of iShares 2018 S&P AMT-Free Municipal Series and iShares 2019 S&P AMT-Free Municipal to: Charles Riddle, Acting Director/Chief at the Commission’s Public Reference Series under NYSE Arca Equities Rule 5.2(j)(3), Information Officer, Securities and Room. Commentary .02); 67729 (August 24, 2012), 77 FR Exchange Commission, c/o Candace 52776 (August 30, 2012) (SR–NYSEArca–2012–92) II. Self-Regulatory Organization’s (notice of proposed rule change relating to the Kenner, 100 F Street NE, Washington, Statement of the Purpose of, and listing and trading of iShares 2018 S&P AMT-Free DC 20549, or send an email to: PRA_ Statutory Basis for, the Proposed Rule Municipal Series and iShares 2019 S&P AMT-Free [email protected]. Municipal Series under NYSE Arca Equities Rule Change 5.2(j)(3), Commentary .02); 72523, (July 2, 2014), 79 Dated: February 22, 2019. FR 39016 (July 9, 2014) (SR–NYSEArca–2014–37) Eduardo A. Aleman, In its filing with the Commission, the (order approving proposed rule change relating to self-regulatory organization included the listing and trading of iShares 2020 S&P AMT- Deputy Secretary. statements concerning the purpose of, Free Municipal Series under NYSE Arca Equities [FR Doc. 2019–03393 Filed 2–26–19; 8:45 am] Rule 5.2(j)(3), Commentary .02); 72172 (May 15, and basis for, the proposed rule change 2014), 79 FR 29241 (May 21, 2014) (SR–NYSEArca– BILLING CODE 8011–01–P and discussed any comments it received 2014–37) (notice of proposed rule change relating on the proposed rule change. The text to the listing and trading of iShares 2020 S&P AMT- Free Municipal Series under NYSE Arca Equities of those statements may be examined at Rule 5.2(j)(3), Commentary .02); 72464 (June 25, the places specified in Item IV below. 2014), 79 FR 37373 (July 1, 2014) (File No. SR– The Exchange has prepared summaries, NYSEArca–2014–45) (order approving proposed rule change governing the continued listing and set forth in sections A, B, and C below, trading of shares of the PowerShares Insured of the most significant parts of such California Municipal Bond Portfolio, PowerShares statements. Insured National Municipal Bond Portfolio, and PowerShares Insured New York Municipal Bond Portfolio); 75468 (July 16, 2015), 80 FR 43500 (July 1 15 U.S.C. 78s(b)(1). 22, 2015) (SR–NYSEArca–2015–25) (order 2 15 U.S.C. 78a. approving proposed rule change relating to the 3 17 CFR 240.19b–4. Continued

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the large number of prior approvals by the Commission has previously existing requirements of Commentary the Commission, the Exchange now approved for listing and trading a series .02 to Rule 5.2–E(j)(3) its constituent proposes to adopt generic listing of Units based on such indices where securities are sufficiently liquid to deter standards for Units based on an index the Exchange has demonstrated an manipulation of the index. Further, the of Municipal Securities that do not meet index is not susceptible to proposed alternative listing standard, the generic listing standards for Units manipulation.7 which would only be applicable to an based on an index of fixed-income The Exchange would apply existing index consisting entirely of Municipal securities. Commentary .02 to Rule 5.2–E(j)(3) and Securities and cash, includes many In the Exchange’s experience, indices proposed Commentary .02A to Rule 5.2– requirements that are more stringent of Municipal Securities are able to E(j)(3) in a ‘‘waterfall’’ manner. than those applicable to an index of satisfy all of the generic listing Specifically, every series of Units based fixed-income securities and cash. The requirements applicable to fixed-income on an index of fixed-income securities Exchange believes these heightened indices contained in Commentary .02 to and cash (including an index that requirements would deter potential Rule 5.2–E(j)(3) except the requirement contains Municipal Securities) would manipulation of such Municipal that component securities in an index initially be evaluated against the generic Securities indices even though the have a minimum original principal listing standards of existing index may include securities that have amount outstanding. Specifically, Commentary .02 to Rule 5.2–E(j)(3). If smaller original principal amounts Municipal Securities are generally the index underlying a series of Units outstanding. issued with individual maturities of satisfied the existing criteria of Comparison of Existing Quantitative relatively small size, although they Commentary .02 to Rule 5.2–E(j)(3), the Requirements for Fixed-Income Indices generally are constituents of a much Exchange would proceed with listing vs. Proposed Quantitative Requirements larger municipal bond offering. the Units. The Exchange would apply for Municipal Securities Indices Therefore, Municipal Securities are proposed Commentary .02A to Rule 5.2– unable to satisfy the rule’s requirement E(j)(3) only if (i) an index did not meet Below is a comparison of the existing that ‘‘at least 75% of the Fixed Income the requirements of Commentary .02 to quantitative requirements for Units Securities portion of the weight of the Rule 5.2–E(j)(3) and (ii) such index based on an index of fixed-income index or portfolio each shall have a contained only Municipal Securities securities versus the Exchange’s minimum original principal amount and cash. proposed alternative quantitative outstanding of $100 million or more.’’ The Exchange believes that if an requirements for Units based on an Notwithstanding the inability of a index of fixed-income securities and index of Municipal Securities: Municipal Securities index to meet this cash (including one that contains Original Principal Amount aspect of the generic listing standards, Municipal Securities) satisfies the Outstanding:

Existing Requirement for Fixed-Income Securities: Fixed Income Security components that in aggregate account for at least 75% of the Fixed Income Securities portion of the weight of the index or portfolio each shall have a minimum original principal amount outstanding of $100 million or more. Proposed Requirement for Municipal Securities: Municipal Security components that in aggregate account for at least 90% of the Municipal Securities portion of the weight of the index or portfolio each shall have a minimum original principal amount out- standing of at least $5 million and have been issued as part of a transaction of at least $20 million.

As discussed above, Municipal increase the percentage weight of an 5.2–E(j)(3), is to ensure that such index Securities are typically issued with index that must satisfy the original is sufficiently broad-based in scope as to individual maturities of relatively small principal amount outstanding minimize potential manipulation of the size, although they generally are requirement from 75% to 90%. index.8 However, based on empirical constituents of a much larger municipal The Exchange does not believe that analysis, the Exchange does not believe bond offering. In recognition of these reducing the minimum original that an index of Municipal Securities smaller offering sizes, the Exchange principal amount outstanding with lower original principal amounts proposes to reduce the minimum requirement for component securities outstanding is necessarily more original principal amount outstanding will make an index more susceptible to susceptible to manipulation.9 In 2016, requirement for component securities to manipulation. The Exchange believes Blackrock, Inc. analyzed the potential at least $5 million. Further, the that the requirement that component manipulation of Municipal Securities Exchange proposes that qualifying securities in a fixed-income index have and found that such manipulation ‘‘may securities must have been issued as part a minimum principal amount be uneconomical and is unsupported in of a transaction of at least $20 million. outstanding, in concert with the other Lastly, the Exchange proposes to requirements of Commentary .02 to Rule

listing and trading of iShares iBonds Dec 2021 (order approving proposed rule change relating to 9 See Letter from Samara Cohen, Managing AMT-Free Muni Bond ETF and iShares iBonds Dec the listing and trading of Vanguard Tax-Exempt Director, U.S. Head of iShares Capital Markets, 2022 AMT-Free Muni Bond ETF under NYSE Arca Bond Index Fund under NYSE Arca Equities Rule Joanne Medero, Managing Director, Government Equities Rule 5.2(j)(3)); 74730 (April 15, 2015), 76 5.2(j)(3)). Relations & Public Policy, and Deepa Damre, FR 22234 (April 21, 2015) (notice of proposed rule 7 See Footnote 5 [sic], supra. Managing Director, Legal & Compliance, BlackRock, change relating to the listing and trading of iShares iBonds Dec 2021 AMT-Free Muni Bond ETF and 8 See Securities Exchange Act Release No. 55783 Inc., to Brent J. Fields, Secretary, Commission, iShares iBonds Dec 2022 AMT-Free Muni Bond (May 17, 2007), 72 FR 29194 (May 24, 2007) (SR– dated October 18, 2017 in support of the Exchange’s ETF under NYSE Arca Equities Rule 5.2(j)(3), NYSEArca–2007–36) (order approving the adoption proposal to facilitate the listing and trading of Commentary .02); 74730 75376 (July 7, 2015), 80 FR of generic listing standards for Units based on an certain series of Units listed pursuant to NYSE Arca 40113 (July 13, 2015) (SR–NYSEArca–2015–18) index of fixed-income securities) at pg. 19–20. Rule 5.2–E(j)(3) (SR–NYSEArca–2017–56).

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practice.’’ 10 In addition, the Exchange a greater portion of the index meet this at least 90% of the weight of the index believes that its proposal to require that minimum size requirement. have a minimum original principal 90% of the weight of a Municipal The Exchange notes that the amount outstanding of at least $5 Securities Index meet the original Commission has previously approved million and have been issued as part of principal amount outstanding the listing and trading of several series a transaction of at least $20 million.11 requirement (as opposed to 75% for of Units where the underlying Maximum Weight of Component fixed-income indices) will further deter Municipal Securities index required potential manipulation by ensuring that that component securities representing Securities:

Existing Requirement for Fixed-Income Securi- No component fixed-income security (excluding Treasury Securities and GSE Securities) shall ties: represent more than 30% of the Fixed Income Securities portion of the weight of the index or portfolio, and the five most heavily weighted component fixed-income securities in the index or portfolio shall not in the aggregate account for more than 65% of the Fixed Income Securities portion of the weight of the index or portfolio. Proposed Requirement for Municipal Securities: No component Municipal Security shall represent more than 10% of the Municipal Securities portion of the weight of the index or portfolio, and the five most heavily weighted component Municipal Securities in the index or portfolio shall not in the aggregate account for more than 30% of the Municipal Securities portion of the weight of the index or portfolio.

The Exchange proposes to to 30% of the weight of such index and a Municipal Securities index underlying substantially reduce the maximum the top-five weighted component a series of Units could be subject to weight that any individual Municipal securities to account for up to 65% of manipulation by ensuring that no Security, or group of five Municipal the weight of such index. The Exchange individual Municipal Security, or group Securities, can have in a Municipal proposes to reduce these metrics to 10% of five Municipal Securities, represents Securities index. The current generic for individual Municipal Securities and an outsized weight of a Municipal listing rules for Units based on a fixed- 30% for the top-weighted Municipal Securities index. income index permit individual Securities in an index. The Exchange believes that its Diversification of Issuers: component securities to account for up proposal will reduce the likelihood that

Existing Requirement for Fixed-Income Securi- An underlying index or portfolio (excluding one consisting entirely of exempted securities) must ties: include a minimum of 13 non-affiliated issuers. Proposed Requirement for Municipal Securities: An underlying index or portfolio must include a minimum of 13 non-affiliated issuers.

The current generic listing rules for diversification will reduce the index of fixed-income securities contain Units based on an index of fixed-income likelihood that an index can be at least thirteen component securities. securities require that such index must manipulated by ensuring that securities As described above, a fixed-income include securities from at least thirteen from a variety of issuers are represented index comprised entirely of exempted non-affiliated 12 issuers. Notably, the in an index of Municipal Securities. securities (including Municipal current rules exempt indices consisting Number of Components: Securities) is not required to satisfy the entirely of exempted securities from issuer diversification test, thereby complying with this diversification Existing Requirement for Thirteen. allowing it to have no minimum number requirement. Municipal Securities are Fixed-Income Securities: of component securities. included in the definition of exempted Proposed Requirement for Five Hundred. The Exchange proposes to require that securities.13 Therefore, an index of Municipal Securities: a Municipal Securities Index contain at Municipal Securities that otherwise met least 500 component securities. The the requirements of Commentary .02 to The current generic listing rules for Exchange believes that such Rule 5.2–E(j)(3) would not be required Units based on an index of fixed-income requirement will ensure that a to satisfy any minimum issuer securities do not have an explicit Municipal Securities index is diversification requirement. requirement that an index contain a sufficiently broad-based and diversified Nonetheless, the Exchange proposes minimum number of securities. to make it less susceptible to that a Municipal Securities Index be However, given that such rules require manipulation. required to include securities from at an index to contain securities from at The Exchange proposes that the least 13 non-affiliated issuers. The least thirteen non-affiliated issuers, quantitative requirements described Exchange believes that requiring such there is a de facto requirement that an above would apply to a Municipal

10 See Id. at 3 and accompanying Footnote 11. manipulation of the corresponding index or ETF; 12 Rule 405 under the Securities Act of 1933 Blackrock stated ‘‘Our empirical analysis indicated and (4) market participants will use all intraday defines an affiliate as a person that directly, or that: (1) Given the over-the-counter dealer-centric data to come up with their own valuations indirectly through one or more intermediaries, market for municipal bonds, the bid-ask spread independently of pricing providers; ultimately, the controls or is controlled by, or is under common decreases with trade size; therefore, trading many price of an ETF at a point in time reflects these control with such person. Control, for this purpose, small lots to move matrix prices is likely to be estimates in a manner that balances supply and costly; (2) large trades move prices significantly and is the possession, direct or indirect, of the power demand.’’ this effect is incorporated into prices quickly; for to direct or cause the direction of the management 11 manipulation to work by affecting bond prices, the See Securities Exchange Act Release No. 84049 and policies of a person, whether through the trades must be large, implying greater dollar cost (September 6, 2018), 83 FR 46228 (September 12, ownership of voting securities, by contract, or and more likelihood of detection even if markets 2012) (SR–NYSEArca–2018–38) (order approving, otherwise. among other things, revisions to the continued were segmented; (3) while pricing agents apply 13 See Section 3(a)(12) of the Securities Exchange matrix pricing techniques to value non-traded listing criteria applicable to the iShares New York Act of 1934. bonds, the effect is likely too small to permit price AMT-Free Muni Bond ETF).

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Securities index underlying a series of Authority 14 or that makes decisions on under Section 6(b)(5) 15 that an Units on both an initial and continued the index composition, methodology exchange have rules that are designed to basis. and related matters, must implement prevent fraudulent and manipulative The Exchange proposes to amend and maintain, or be subject to, acts and practices, to promote just and Commentary .03 to NYSE Arca Rule procedures designed to prevent the use equitable principles of trade, to remove 5.2–E(j)(3) to specify that the Exchange and dissemination of material non- impediments to, and perfect the mechanism of a free and open market may approve a series of Units for listing public information regarding the and, in general, to protect investors and based on a combination of indexes, applicable Municipal Securities index. The Exchange proposes to adopt the public interest. including an index of Municipal Commentary .02A(c) which will require The Exchange believes that the Securities. To the extent that an index that one or more major market data proposed rule change is designed to of Municipal Securities is included in a vendors shall disseminate for each prevent fraudulent and manipulative combination, proposed Commentary .03 series of Units based on an index or acts and practices in that Units listed will specify that the Municipal portfolio of Municipal Securities an pursuant to proposed NYSE Arca Rule Securities index must meet all estimate, updated at least every 15 5.2–E(j)(3), Commentary .02A will be requirements of Commentary .02A. In seconds during the Core Trading subject to the existing trading addition, Commentary .03 will be Session, of the value of a share of each surveillances, administered by FINRA amended to specify that requirements series (the ‘‘Intraday Indicative Value’’). on behalf of the Exchange, which are related to index dissemination and The Intraday Indicative Value may be designed to detect violations of related continued listing standards will based, for example, upon current Exchange rules and applicable federal apply to indexes of Municipal information regarding the required securities laws. The Exchange Securities. The Exchange notes that a deposit of securities and cash amount to represents that these procedures are combination index that includes an permit creation of new shares of the adequate to properly monitor Exchange index of Municipal Securities will not series or upon the index value. The trading of the Shares in all trading be permitted to seek to provide Intraday Indicative Value may be sessions and to deter and detect investment results in a multiple of the calculated by the Exchange or by an violations of Exchange rules and direct or inverse performance of such independent third party throughout the applicable federal securities laws. combination index. day using prices obtained from FINRA, on behalf of the Exchange, will independent market data providers or communicate as needed regarding Additional Requirements other independent pricing sources such trading in the Shares with other markets that are members of the ISG or with In addition to the quantitative as a broker-dealer or price evaluation which the Exchange has in place a requirements described above, the services. If the Intraday Indicative Value comprehensive surveillance sharing Exchange proposes to adopt additional does not change during some or all of the period when trading is occurring on agreement. FINRA also can access data rules related to (i) index methodology obtained from the MSRB relating to and calculation, (ii) dissemination of the Exchange, then the last official calculated Intraday Indicative Value municipal bond trading activity for information, (iii) initial shares surveillance purposes in connection outstanding, (iv) hours of trading, (v) must remain available throughout Exchange trading hours. with trading in the Shares. FINRA, on surveillance procedures, and (vi) behalf of the Exchange, is able to access, disclosures. Such additional The Exchange proposes to adopt Commentary .02A(d) stating that a as needed, trade information for certain requirements are consistent with the minimum of 100,000 shares of a series fixed income securities held by a Fund requirements applicable to Units based of Units will be required to be reported to FINRA’s TRACE. on an index of U.S. equity securities, outstanding at commencement of Pursuant to proposed Commentary global equity securities and fixed- trading. .02A(b), if the index is maintained by a income securities. The Exchange proposes to adopt broker-dealer or fund advisor, the The Exchange proposes to adopt Commentary .02A(e) stating that the broker-dealer or fund advisor shall erect Commentary .02A(b) to Rule 5.2–E(j)(3) hours of trading for the Units will be as and maintain a ‘‘firewall’’ around the which will require that (i) if a Municipal specified in NYSE Arca Rule 7.34–E(a). personnel who have access to Securities index is maintained by a The Exchange proposes to adopt information concerning changes and broker-dealer or fund advisor, the Commentary .02A(f) specifying that adjustments to the index. Further, any broker-dealer or fund advisor shall erect Units that are listed or traded pursuant advisory committee, supervisory board, or similar entity that advises a Reporting and maintain a ‘‘firewall’’ around the to unlisted trading privileges will be Authority or that makes decisions on personnel who have access to subject to the Exchange’s written the index composition, methodology information concerning changes and surveillance procedures. and related matters, must implement adjustments to the index; (ii) the current Pursuant to NYSE Arca Rule 5.2– and maintain, or be subject to, index value for Units listed pursuant to E(j)(3)(A)(v), the Exchange will obtain a procedures designed to prevent the use proposed Commentary .02A(a) will be representation from an issuer of Units based on an index of Municipal and dissemination of material non- widely disseminated by one or more public information regarding the major market data vendors at least once Securities that the net asset value per share of the series will be calculated applicable index. per day and if the index value does not The index value of a series of Units change during some or all of the period daily and will be made available to all market participants at the same time. listed pursuant to proposed when trading is occurring on the NYSE Commentary .02A will be widely Arca Marketplace, the last official 2. Statutory Basis disseminated by one or more major calculated index value must remain The basis under the Act for this market data vendors at least once per available throughout NYSE Arca proposed rule change is the requirement day and if the index value does not Marketplace trading hours; and (iii) any change during some or all of the period advisory committee, supervisory board, 14 The term ‘‘Reporting Authority’’ has the or similar entity that advises a Reporting meaning given to it in NYSE Arca Rule 5.1–E(b)(16). 15 15 U.S.C. 78f(b)(5).

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when trading is occurring on the results in a multiple of the direct or inadvisable. If the IIV or the index Exchange, the last official calculated inverse performance of such values are not being disseminated as index value must remain available combination index. required, the Exchange may halt trading throughout Exchange trading hours. In In support of its proposed rule during the day in which the addition, the IIV for the Units will be change, the Exchange notes that the interruption to the dissemination of the disseminated by one or more major Commission has previously approved applicable IIV or an index value occurs. market data vendors, updated at least the listing and trading of several series If the interruption to the dissemination every 15 seconds during the Exchange’s of Units where the underlying of the applicable IIV or an index value Core Trading Session. Municipal Securities index required persists past the trading day in which it The Exchange believes that the that component securities representing occurred, the Exchange will halt proposed listing standard will ensure at least 90% of the weight of the index trading. Trading in Shares of the Funds that indices underlying a series of Units have a minimum original principal will be halted if the circuit breaker are sufficiently well-diversified to amount outstanding of at least $5 parameters in NYSE Arca Rule 7.12–E protect against index manipulation. On million and have been issued as part of have been reached or because of market an initial and continuous basis, each a transaction of at least $20 million.16 conditions or for reasons that, in the index will contain at least 500 Further, the Exchange notes that the view of the Exchange, make trading in component securities. In addition, on an other elements of the proposed rule are the Units inadvisable. In addition, initial and continued basis, at least 90% each the same or more restrictive than investors will have ready access to of the Municipal Securities portion of the generic listing rules applicable to information regarding the IIV, and the weight of the index or portfolio each Units based on an index of fixed-income quotation and last sale information for shall have a minimum original principal securities. The Exchange, therefore, the Units. amount outstanding of at least $5 believes that indices underlying a series The proposed rule change is designed million and have been issued as part of of Units listed pursuant to the proposed to perfect the mechanism of a free and a transaction of at least $20 million. generic rules will be sufficiently broad- open market and, in general, to protect Further, on an initial and continued based to deter potential manipulation. investors and the public interest in that basis, no component Municipal Security The proposed rule change is designed it will facilitate the listing and trading shall represent more than 10% of the to promote just and equitable principles of additional types of exchange-traded Municipal Securities portion of the of trade and to protect investors and the products based on municipal bond weight of the index or portfolio, and the public interest. The Exchange believes indexes that will enhance competition five most heavily weighted component that a large amount of information will among market participants, to the Municipal Securities in an index or be publicly available regarding Units benefit of investors and the marketplace. portfolio shall not in the aggregate listed pursuant to the proposed rule, The Exchange has in place surveillance account for more than 30% of the thereby promoting market transparency. procedures relating to trading in the Municipal Securities portion of the As described above, the IIV will be Units and may obtain information via weight of such index or portfolio. widely disseminated by one or more Lastly, on an initial and continued major market data vendors at least every ISG from other exchanges that are basis, an underlying index or portfolio 15 seconds during the Exchange’s Core members of ISG or with which the must include a minimum of 13 non- Trading Session. The current value of an Exchange has entered into a affiliated issuers. The Exchange believes index underlying a series of Units will comprehensive surveillance sharing that this significant diversification and be disseminated by one or more major agreement. In addition, investors will the lack of concentration among market data vendors at least once per have ready access to information constituent securities provides a strong day. Information regarding market price regarding the IIV and quotation and last degree of protection against index and trading volume of the Units will be sale information for the Units. Trade manipulation. continually available on a real-time price and other information relating to In addition, the Exchange represents basis throughout the day on brokers’ municipal bonds is available through that Units listed to the proposed generic computer screens and other electronic the MSRB’s EMMA system. listing rule will comply with all other services, and quotation and last sale B. Self-Regulatory Organization’s requirements applicable to Units information will be available via the Statement on Burden on Competition including, but not limited to, the CTA high-speed line. Prior to the applicable rules governing the trading of commencement of trading, the Exchange The Exchange does not believe that its equity securities, trading hours, trading will inform its ETP Holders in an proposal would impose any burden on halts, surveillance, information barriers Information Bulletin of the special competition that is not necessary or and the Information Bulletin to ETP characteristics and risks associated with appropriate in furtherance of the Holders, as set forth in Exchange rules trading the Units. If the Exchange purposes of the Act. The Exchange notes applicable to Units. becomes aware that the NAV is not that the proposed rule change will The Exchange believes that its being disseminated to all market facilitate the listing and trading of Units proposed amendments to Commentary participants at the same time, it will halt based on an index of Municipal .03 are consistent with the Act because trading in the Units until such time as Securities which will enhance any index of Municipal Securities the NAV is available to all market competition among market participants, included in a combination index will be participants. With respect to trading to the benefit of investors and the required to meet the requirements of halts, the Exchange may consider all marketplace. proposed Commentary .02A. In relevant factors in exercising its C. Self-Regulatory Organization’s addition, such index will be required to discretion to halt or suspend trading in Statement on Comments on the meet the index dissemination and the Units. Trading also may be halted Proposed Rule Change Received From continued listing requirements of because of market conditions or for Members, Participants, or Others Commentary .03. Lastly, a combination reasons that, in the view of the index that includes an index of Exchange, make trading in the Units No written comments were solicited Municipal Securities will not be or received with respect to the proposed permitted to seek to provide investment 16 See note 10[sic], infra [sic]. rule change.

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III. Date of Effectiveness of the inspection and copying at the principal We estimate that the transfer agent Proposed Rule Change and Timing for office of the Exchange. All comments industry submits 11,006 Rule 17Ad–16 Commission Action received will be posted without change. notices per year to appropriate qualified Within 45 days of the date of Persons submitting comments are registered securities depositories. The publication of this notice in the Federal cautioned that we do not redact or edit staff estimates that the average amount Register or up to 90 days (i) as the personal identifying information from of time necessary to create and submit Commission may designate if it finds comment submissions. You should each notice is approximately 15 minutes such longer period to be appropriate submit only information that you wish per notice. Accordingly, the estimated and publishes its reasons for so finding to make available publicly. All total industry burden is 2,752 hours per or (ii) as to which the self-regulatory submissions should refer to File year (15 minutes multiplied by 11,006 organization consents, the Commission Number SR–NYSEArca–2019–04 and notices filed annually rounded up from will: should be submitted on or before March 2,751.5 to 2,752). (A) By order approve or disapprove 20, 2019. Because the information needed by the proposed rule change, or For the Commission, by the Division of transfer agents to properly notify the (B) institute proceedings to determine Trading and Markets, pursuant to delegated appropriate registered securities whether the proposed rule change authority.17 depository is readily available to them should be disapproved. Eduardo A. Aleman, and the report is simple and Deputy Secretary. straightforward, the cost is relatively IV. Solicitation of Comments [FR Doc. 2019–03331 Filed 2–26–19; 8:45 am] minimal. The average internal Interested persons are invited to BILLING CODE 8011–01–P compliance cost to prepare and send a submit written data, views, and notice is approximately $70.75 (15 arguments concerning the foregoing, minutes at $283 per hour).1 This yields including whether the proposed rule SECURITIES AND EXCHANGE an industry-wide internal compliance change is consistent with the Act. COMMISSION cost estimate of $778,675 (11,006 Comments may be submitted by any of notices multiplied by $70.75 per notice the following methods: [SEC File No. 270–363, OMB Control No. rounded up from $778,674.5 to 3235–0413] $778,675). Electronic Comments Written comments are invited on: (a) • Proposed Collection; Comment Use the Commission’s internet Whether the proposed collection of Request comment form (http://www.sec.gov/ information is necessary for the proper rules/sro.shtml); or performance of the functions of the • Upon Written Request, Copies Available Send an email to rule-comments@ From: Securities and Exchange Commission, including whether the sec.gov. Please include File Number SR– Commission, Office of FOIA Services, information shall have practical utility; NYSEArca–2019–04 on the subject line. 100 F Street NE, Washington, DC (b) the accuracy of the Commission’s Paper Comments 20549–2736. estimates of the burden of the proposed collection of information; (c) ways to • Send paper comments in triplicate Extension: Rule 17Ad–16 enhance the quality, utility, and clarity to Secretary, Securities and Exchange of the information collected; and (d) Commission, 100 F Street NE, Notice is hereby given that, pursuant ways to minimize the burden of the Washington, DC 20549–1090. to the Paperwork Reduction Act of 1995 collection of information on All submissions should refer to File (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the respondents, including through the use Number SR–NYSEArca–2019–04. This Securities and Exchange Commission of automated collection techniques or file number should be included on the (‘‘Commission’’) is soliciting comments other forms of information technology. subject line if email is used. To help the on the existing collection of information Consideration will be given to Commission process and review your provided for in Rule 17Ad–16 (17 CFR comments and suggestions submitted in comments more efficiently, please use 240.17Ad–16) under the Securities writing within 60 days of this only one method. The Commission will Exchange Act of 1934 (15 U.S.C. 78a et publication. post all comments on the Commission’s seq.). The Commission plans to submit An agency may not conduct or internet website (http://www.sec.gov/ this existing collection of information to sponsor, and a person is not required to rules/sro.shtml). Copies of the the Office of Management and Budget respond to, a collection of information submission, all subsequent (‘‘OMB’’) for extension and approval. under the PRA unless it displays a amendments, all written statements Rule 17Ad–16 requires a registered currently valid OMB control number. with respect to the proposed rule transfer agent to provide written notice Please direct your written comments change that are filed with the to the appropriate qualified registered to: Charles Riddle, Director/Chief Commission, and all written securities depository when assuming or Information Officer, Securities and communications relating to the terminating transfer agent services on Exchange Commission, c/o Candace proposed rule change between the behalf of an issuer or when changing its Kenner, 100 F Street NE, Washington, Commission and any person, other than name or address. In addition, transfer DC 20549, or send an email to: PRA_ those that may be withheld from the agents that provide such notice shall [email protected]. public in accordance with the maintain such notice for a period of at provisions of 5 U.S.C. 552, will be least two years in an easily accessible place. This rule addresses the problem 1 The estimated hourly wages used in this available for website viewing and analysis were derived from reports prepared by the printing in the Commission’s Public of certificate transfer delays caused by Securities Industry and Financial Markets Reference Room, 100 F Street NE, transfer requests that are directed to the Association. See Securities Industry and Financial Washington, DC 20549 on official wrong transfer agent or the wrong Markets Association, Office Salaries in the address. Securities Industry—2013 (2013), modified to business days between the hours of account for an 1800-hour work year and multiplied 10:00 a.m. and 3:00 p.m. Copies of the by 5.35 to account for bonuses, firm size, employee filing also will be available for 17 17 CFR 200.30–3(a)(12). benefits and overhead.

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Dated: February 22, 2019. a hearing. Interested persons may Participant’’, which will have signed a Eduardo A. Aleman, request a hearing by writing to the participant agreement with the Deputy Secretary. Commission’s Secretary and serving Distributor. Shares will be listed and [FR Doc. 2019–03392 Filed 2–26–19; 8:45 am] applicants with a copy of the request, traded individually on a national BILLING CODE 8011–01–P personally or by mail. Hearing requests securities exchange, where share prices should be received by the Commission will be based on the current bid/offer by 5:30 p.m. on March 18, 2019, and market. Any order granting the SECURITIES AND EXCHANGE should be accompanied by proof of requested relief would be subject to the COMMISSION service on applicants, in the form of an terms and conditions stated in the affidavit, or for lawyers, a certificate of application. [Investment Company Act Release No. service. Pursuant to rule 0–5 under the 2. Each Fund will hold investment 33381; 812–14887] Act, hearing requests should state the positions selected to correspond OBP Capital LLC, et al.; Notice of nature of the writer’s interest, any facts generally to the performance of an Application bearing upon the desirability of a Underlying Index. In the case of Self- hearing on the matter, the reason for the Indexing Funds, an affiliated person, as February 21, 2019. request, and the issues contested. defined in section 2(a)(3) of the Act AGENCY: Securities and Exchange Persons who wish to be notified of a (‘‘Affiliated Person’’), or an affiliated Commission (‘‘Commission’’). hearing may request notification by person of an Affiliated Person (‘‘Second- ACTION: Notice. writing to the Commission’s Secretary. Tier Affiliate’’), of the Trust or a Fund, ADDRESSES: Secretary, Securities and of the Adviser, of any sub-adviser to or Notice of an application for an order Exchange Commission, 100 F Street NE, promoter of a Fund, or of the Distributor under section 6(c) of the Investment Washington, DC 20549–1090; will compile, create, sponsor or Company Act of 1940 (the ‘‘Act’’) for an Applicants: OBP Capital LLC, 116 South maintain the Underlying Index.2 exemption from sections 2(a)(32), Franklin Street, Rocky Mount, North 3. Shares will be purchased and 5(a)(1), 22(d), and 22(e) of the Act and Carolina 27804; Spinnaker ETF Series, redeemed in Creation Units and rule 22c–1 under the Act, under 116 South Franklin Street, Rocky generally on an in-kind basis. Except sections 6(c) and 17(b) of the Act for an Mount, North Carolina 27804. where the purchase or redemption will exemption from sections 17(a)(1) and FOR FURTHER INFORMATION CONTACT: include cash under the limited 17(a)(2) of the Act, and under section Thankam A. Varghese, Attorney-Adviser circumstances specified in the 12(d)(1)(J) for an exemption from at (202) 551–6446 or Parisa Haghshenas, application, purchasers will be required sections 12(d)(1)(A) and 12(d)(1)(B) of Branch Chief, at (202) 551–6723 to purchase Creation Units by the Act. The requested order would (Division of Investment Management, depositing specified instruments permit (a) index-based series of certain Chief Counsel’s Office). (‘‘Deposit Instruments’’), and open-end management investment SUPPLEMENTARY INFORMATION: The shareholders redeeming their shares companies (‘‘Funds’’) to issue shares will receive specified instruments redeemable in large aggregations only following is a summary of the application. The complete application (‘‘Redemption Instruments’’). The (‘‘Creation Units’’); (b) secondary market Deposit Instruments and the transactions in Fund shares to occur at may be obtained via the Commission’s website by searching for the file Redemption Instruments will each negotiated market prices rather than at correspond pro rata to the positions in net asset value (‘‘NAV’’); (c) certain number, or for an applicant using the Company name box, at http:// the Fund’s portfolio (including cash Funds to pay redemption proceeds, positions) except as specified in the under certain circumstances, more than www.sec.gov/search/search.htm or by calling (202) 551–8090. application. seven days after the tender of shares for 4. Because shares will not be redemption; (d) certain affiliated Summary of the Application individually redeemable, applicants persons of a Fund to deposit securities 1. Applicants request an order that request an exemption from Section into, and receive securities from, the would allow Funds to operate as index 5(a)(1) and Section 2(a)(32) of the Act Fund in connection with the purchase exchange traded funds (‘‘ETFs’’).1 Fund that would permit the Funds to register and redemption of Creation Units; and shares will be purchased and redeemed as open-end management investment (e) certain registered management at their NAV in Creation Units only. All companies and issue shares that are investment companies and unit orders to purchase Creation Units and redeemable in Creation Units only. investment trusts outside of the same all redemption requests will be placed 5. Applicants also request an group of investment companies as the by or through an ‘‘Authorized exemption from section 22(d) of the Act Funds (‘‘Funds of Funds’’) to acquire and rule 22c–1 under the Act as shares of the Funds. 1 Applicants request that the order apply to the secondary market trading in shares will Applicants: Spinnaker ETF Series (the initial fund and any additional series of the Trust, take place at negotiated prices, not at a ‘‘Trust’’), a Delaware statutory trust and any other existing or future open-end current offering price described in a registered under the Act as an open-end management investment company or existing or Fund’s prospectus, and not at a price management investment company and future series thereof (each, included in the term ‘‘Fund’’), each of which will operate as an ETF and based on NAV. Applicants state that (a) OBP Capital LLC (the ‘‘Initial Adviser’’), will track a specified index comprised of domestic secondary market trading in shares does a Delaware limited liability company and/or foreign equity securities and/or domestic not involve a Fund as a party and will registered as an investment adviser and/or foreign fixed income securities (each, an not result in dilution of an investment under the Investment Advisers Act of ‘‘Underlying Index’’). Any Fund will (a) be advised by the Initial Adviser or an entity controlling, 1940. controlled by, or under common control with the 2 Each Self-Indexing Fund will post on its website Filing Dates: The application was Initial Adviser (each such entity and any successor the identities and quantities of the investment filed on March 14, 2018, and amended thereto, an ‘‘Adviser’’) and (b) comply with the positions that will form the basis for the Fund’s on July 23, 2018 and November 5, 2018. terms and conditions of the application. For calculation of its NAV at the end of the day. purposes of the requested order, a ‘‘successor’’ is Applicants believe that requiring Self-Indexing Hearing or Notification of Hearing: An limited to an entity or entities that result from a Funds to maintain full portfolio transparency will order granting the requested relief will reorganization into another jurisdiction or a change help address, together with other protections, be issued unless the Commission orders in the type of business organization. conflicts of interest with respect to such Funds.

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in shares, and (b) to the extent different transactions in section 17(a) to permit a SECURITIES AND EXCHANGE prices exist during a given trading day, Fund to sell its shares to and redeem its COMMISSION or from day to day, such variances occur shares from a Fund of Funds, and to as a result of third-party market forces, engage in the accompanying in-kind [Investment Company Act Release No. such as supply and demand. Therefore, transactions with the Fund of Funds.3 33383] applicants assert that secondary market The purchase of Creation Units by a transactions in shares will not lead to Fund of Funds directly from a Fund will Notice of Applications for discrimination or preferential treatment be accomplished in accordance with the Deregistration Under Section 8(f) of the among purchasers. Finally, applicants policies of the Fund of Funds and will Investment Company Act of 1940 represent that share market prices will be based on the NAVs of the Funds. be disciplined by arbitrage February 22, 2019. opportunities, which should prevent 9. Section 6(c) of the Act permits the The following is a notice of shares from trading at a material Commission to exempt any persons or applications for deregistration under discount or premium from NAV. transactions from any provision of the section 8(f) of the Investment Company 6. With respect to Funds that effect Act if such exemption is necessary or Act of 1940 for the month of February creations and redemptions of Creation appropriate in the public interest and 2019. A copy of each application may be Units in kind and that are based on consistent with the protection of obtained via the Commission’s website certain Underlying Indexes that include investors and the purposes fairly by searching for the file number, or for foreign securities, applicants request intended by the policy and provisions of an applicant using the Company name relief from the requirement imposed by the Act. Section 12(d)(1)(J) of the Act box, at http://www.sec.gov/search/ section 22(e) in order to allow such provides that the Commission may search.htm or by calling (202) 551– Funds to pay redemption proceeds exempt any person, security, or 8090. An order granting each within fifteen calendar days following transaction, or any class or classes of application will be issued unless the the tender of Creation Units for persons, securities, or transactions, from SEC orders a hearing. Interested persons redemption. Applicants assert that the any provision of section 12(d)(1) if the may request a hearing on any requested relief would not be application by writing to the SEC’s exemption is consistent with the public inconsistent with the spirit and intent of Secretary at the address below and interest and the protection of investors. section 22(e) to prevent unreasonable, serving the relevant applicant with a undisclosed or unforeseen delays in the Section 17(b) of the Act authorizes the copy of the request, personally or by actual payment of redemption proceeds. Commission to grant an order mail. Hearing requests should be 7. Applicants request an exemption to permitting a transaction otherwise received by the SEC by 5:30 p.m. on permit Funds of Funds to acquire Fund prohibited by section 17(a) if it finds March 19, 2019, and should be shares beyond the limits of section that (a) the terms of the proposed accompanied by proof of service on 12(d)(1)(A) of the Act; and the Funds, transaction are fair and reasonable and applicants, in the form of an affidavit or, and any principal underwriter for the do not involve overreaching on the part for lawyers, a certificate of service. Funds, and/or any broker or dealer of any person concerned; (b) the Pursuant to Rule 0–5 under the Act, registered under the Exchange Act, to proposed transaction is consistent with hearing requests should state the nature sell shares to Funds of Funds beyond the policies of each registered of the writer’s interest, any facts bearing the limits of section 12(d)(1)(B) of the investment company involved; and (c) upon the desirability of a hearing on the Act. The application’s terms and the proposed transaction is consistent matter, the reason for the request, and conditions are designed to, among other with the general purposes of the Act. the issues contested. Persons who wish things, help prevent any potential (i) to be notified of a hearing may request undue influence over a Fund through For the Commission, by the Division of Investment Management, under delegated notification by writing to the control or voting power, or in Commission’s Secretary. connection with certain services, authority. transactions, and underwritings, (ii) Eduardo A. Aleman, ADDRESSES: The Commission: Secretary, U.S. Securities and Exchange excessive layering of fees, and (iii) Deputy Secretary. overly complex fund structures, which Commission, 100 F Street NE, [FR Doc. 2019–03325 Filed 2–26–19; 8:45 am] Washington, DC 20549–1090. are the concerns underlying the limits BILLING CODE 8011–01–P in sections 12(d)(1)(A) and (B) of the FOR FURTHER INFORMATION CONTACT: Act. Shawn Davis, Branch Chief, at (202) 8. Applicants request an exemption 551–6413 or Chief Counsel’s Office at from sections 17(a)(1) and 17(a)(2) of the (202) 551–6821; SEC, Division of Act to permit persons that are Affiliated Investment Management, Chief Persons, or Second Tier Affiliates, of the Counsel’s Office, 100 F Street NE, Funds, solely by virtue of certain Washington, DC 20549–8010. ownership interests, to effectuate BlackRock Master LLC [File No. 811– purchases and redemptions in-kind. The deposit procedures for in-kind 09049] purchases of Creation Units and the 3 The requested relief would apply to direct sales Summary: Applicant seeks an order redemption procedures for in-kind of shares in Creation Units by a Fund to a Fund of declaring that it has ceased to be an redemptions of Creation Units will be Funds and redemptions of those shares. Applicants, investment company. The applicant has the same for all purchases and moreover, are not seeking relief from section 17(a) transferred its assets to BlackRock redemptions and Deposit Instrument for, and the requested relief will not apply to, Advantage Small Cap Growth Fund, a and Redemption Instruments will be transactions where a Fund could be deemed an series of BlackRock Funds, and on Affiliated Person, or a Second-Tier Affiliate, of a valued in the same manner as those Fund of Funds because an Adviser or an entity March 2, 2018 made a final distribution investment positions currently held by controlling, controlled by or under common control to its shareholders based on net asset the Funds. Applicants also seek relief with an Adviser provides investment advisory value. Expenses of $587,364 incurred in from the prohibitions on affiliated services to that Fund of Funds. connection with the reorganization were

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paid by the applicant’s investment a public offering or engage in business JNL Strategic Income Fund LLC [File adviser or its affiliates. of any kind. No. 811–22730] Filing Date: The application was filed Filing Dates: The application was Summary: Applicant seeks an order on October 11, 2018. filed on September 14, 2018, and declaring that it has ceased to be an Applicant’s Address: 100 Bellevue amended on December 4, 2018. investment company. The applicant has Parkway, Wilmington, Delaware 19809. Applicant’s Address: 200 South transferred its assets to PPM Strategic Deutsche Funds Trust [File No. 811– Wacker Drive, Suite 500, Chicago, Income Fund, a series of PPM Funds, 05896] Illinois 60606. and, on July 2, 2018, made a liquidating distribution to its shareholders based on Summary: Applicant seeks an order Eagle Point Income Company LLC [File net asset value. Expenses of $8,722.72 declaring that it has ceased to be an No. 811–23361] incurred in connection with the investment company. On November 18, Summary: Applicant, a closed-end reorganization were paid by the 2014, applicant made a liquidating investment company, seeks an order applicant’s investment adviser. distribution to its shareholders, based declaring that it has ceased to be an Filing Dates: The application was on net asset value. Expenses of $2,265 investment company. Applicant has filed on October 24, 2018, and amended incurred in connection with the never made a public offering of its on November 19, 2018 and December 4, liquidation were paid by the applicant. securities and does not propose to make 2018. Filing Dates: The application was a public offering or engage in business Applicant’s Address: 225 West filed on August 8, 2018, and amended of any kind. Wacker Drive, Suite 1200, Chicago, on August 28, 2018 and December 20, Filing Dates: The application was Illinois 60606. 2018. filed on November 19, 2018, and Madison Strategic Sector Premium Applicant’s Address: 345 Park amended on December 17, 2018. Fund [File No. 811–21713] Avenue, New York, New York 10154. Applicant’s Address: 600 Steamboat Dreyfus U.S. Treasury Intermediate Road, Suite 202, Greenwich, Summary: Applicant, a closed-end Term Fund [File No. 811–04428] Connecticut 06830. investment company, seeks an order declaring that it has ceased to be an Summary: Applicant seeks an order GAMCO Mathers Fund [File No. 811– investment company. The applicant has declaring that it has ceased to be an 01311] transferred its assets to Madison investment company. On September 26, Summary: Applicant seeks an order Covered Call & Equity Strategy Fund 2017, applicant made a liquidating declaring that it has ceased to be an and, on October 8, 2018, made a final distribution to its shareholders, based investment company. On August 31, distribution to its shareholders based on on net asset value. Expenses of 2018, applicant made a liquidating net asset value. Expenses of $78,259 $4,613.46 incurred in connection with distribution to its shareholders, based incurred in connection with the the liquidation were paid by the on net asset value. Expenses of $10,000 reorganization were paid by the applicant’s investment adviser. incurred in connection with the applicant’s investment adviser. Filing Dates: The application was liquidation were paid by the applicant. Filing Date: The application was filed filed on November 21, 2018, and Applicant also has retained $40,959 for on October 15, 2018. amended on December 20, 2018 and the purpose of paying outstanding Applicant’s Address: 500 Science December 21, 2018. Drive, Madison, Wisconsin 53711. Applicant’s Address: c/o The Dreyfus liabilities in connection with the Corporation, 200 Park Avenue, New liquidation and winding up its Market Vectors Double Tax-Free York, New York 10166. operations. Municipal Income Fund [File No. 811– Filing Dates: The application was 22731] Dreyfus U.S. Treasury Long Term Fund filed on October 4, 2018, and amended Summary: Applicant, a closed-end [File No. 811–04429] on December 13, 2018. investment company, seeks an order Summary: Applicant seeks an order Applicant’s Address: One Corporate declaring that it has ceased to be an declaring that it has ceased to be an Center, Rye, New York 10580–1434. investment company. Applicant has investment company. On September 26, HIMCO Variable Insurance Trust [File never made a public offering of its 2017, applicant made a liquidating No. 811–22954] securities and does not propose to make distribution to its shareholders, based a public offering or engage in business on net asset value. Expenses of Summary: Applicant seeks an order of any kind. $4,105.80 incurred in connection with declaring that it has ceased to be an Filing Date: The application was filed the liquidation were paid by the investment company. The applicant has on December 19, 2018. applicant’s investment adviser. transferred its assets to Blackrock S&P Applicant’s Address: 666 Third Filing Dates: The application was 500 Index V.I. Fund and Blackrock Avenue, 9th Floor, New York, New York filed on November 21, 2018, and Managed Volatility V.I. Fund, each a 10017. amended on December 20, 2018. series of BlackRock Variable Series Morgan Stanley Income Securities Inc. Applicant’s Address: c/o The Dreyfus Funds, Inc., and, on April 23, 2018, [File No. 811–02349] Corporation, 200 Park Avenue, New made a liquidating distribution to its York, New York 10166. shareholders based on net asset value. Summary: Applicant, a closed-end Expenses of $530,576 incurred in investment company, seeks an order Duff & Phelps Diversified Income Fund connection with the liquidation were declaring that it has ceased to be an Inc. [File No. 811–22740] paid by the applicant’s investment investment company. The applicant has Summary: Applicant, a closed-end adviser. transferred its assets to Morgan Stanley investment company, seeks an order Filing Dates: The application was Institutional Fund Trust—Corporate declaring that it has ceased to be an filed on September 14, 2018, and Bond Portfolio and, on June 4, 2018, investment company. Applicant has amended on December 6, 2018. made a final distribution to its never made a public offering of its Applicant’s Address: One Hartford shareholders based on net asset value. securities and does not propose to make Plaza, Hartford, Connecticut 06155. Expenses of $158,400 incurred in

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connection with the reorganization were investment company. Applicant has certain debts or liabilities of the paid by the applicant. never made a public offering of its applicant. Filing Date: The application was filed securities and does not propose to make Filing Dates: The application was on December 18, 2018. a public offering or engage in business filed on November 14, 2018, and Applicant’s Address: Morgan Stanley of any kind. amended on December 14, 2018. Income Securities Inc., c/o Morgan Filing Dates: The application was Applicant’s Address: 177 West Stanley Investment Management Inc., filed on September 18, 2018, and Putnam Avenue, Greenwich, 522 Fifth Avenue, New York, New York amended on December 18, 2018. Connecticut 06830–5203. 10036. Applicant’s Address: 1290 Broadway, Wright Managed Income Trust [File No. NorthStar/Townsend Institutional Real Suite 1100, Denver, Colorado 80203. 811–03668] Estate Fund Inc. [File No. 811–23200] State Farm Mutual Fund Trust [File No. Summary: Applicant seeks an order Summary: Applicant, a closed-end 811–10027] declaring that it has ceased to be an investment company, seeks an order Summary: Applicant seeks an order investment company. On May 1, 2018, declaring that it has ceased to be an declaring that it has ceased to be an applicant made liquidating distributions investment company. Applicant has investment company. The applicant has to its shareholders based on net asset never made a public offering of its transferred its assets to BlackRock Large value. Expenses of $7,218 incurred in securities and does not propose to make Cap Series Funds, Inc., BlackRock connection with the liquidation were a public offering or engage in business Funds, BlackRock Funds III, BlackRock paid by the applicant’s investment of any kind. Index Funds, Inc., BlackRock Funds II, adviser. Applicant also has retained Filing Date: The application was filed BlackRock Funds VI, and BlackRock $4,392 for the purpose of paying certain on February 5, 2019. Financial Institutions Series Trust, and debts or liabilities of the applicant. Applicant’s Address: 590 Madison on November 20, 2018, made a final Filing Dates: The application was Avenue, 34th Floor, New York, New distribution to its shareholders based on filed on November 14, 2018, and York 10022. net asset value. Expenses of amended on December 14, 2018. $4,260,911.34 incurred in connection Applicant’s Address: 177 West Nuveen High Income December 2018 Putnam Avenue, Greenwich, Target Term Fund [File No. 811–23074] with the reorganization were paid by the applicant’s investment adviser. Connecticut 06830–5203. Summary: Applicant, a closed-end For the Commission, by the Division of investment company, seeks an order Filing Date: The application was filed on December 21, 2018. Investment Management, pursuant to declaring that it has ceased to be an delegated authority. investment company. On November 30, Applicant’s Address: State Farm Mutual Fund Trust, One State Farm Eduardo A. Aleman, 2018, applicant made liquidating Deputy Secretary. distributions to its shareholders based Plaza, Bloomington, Illinois 61710– [FR Doc. 2019–03391 Filed 2–26–19; 8:45 am] on net asset value. Expenses of 0001. BILLING CODE 8011–01–P 25,557.76 incurred in connection with Virtus Total Return Fund [File No. 811– the liquidation were paid by the 21680] applicant. Filing Date: The application was filed Summary: Applicant, a closed-end DEPARTMENT OF STATE investment company, seeks an order on February 7, 2019. [Public Notice 10670] Applicant’s Address: 333 West declaring that it has ceased to be an Wacker Drive, Chicago, Illinois 60606. investment company. The applicant has 60-Day Notice of Proposed Information transferred its assets to Virtus Total Collection: Smart Traveler Enrollment Oppenheimer Equity Fund [File No. Return Fund, Inc. (formerly, The Zweig Program 811–00490] Fund, Inc.) and, on April 3, 2017, made Summary: Applicant seeks an order a final distribution to its shareholders ACTION: Notice of request for public declaring that it has ceased to be an based on net asset value. Expenses of comment. investment company. The applicant has $409,000 incurred in connection with SUMMARY: The Department of State is transferred its assets to Oppenheimer the reorganization were paid by the seeking Office of Management and Main Street Fund, a series of applicant and the acquiring fund. Budget (OMB) approval for the Oppenheimer Main Street Funds, and, Filing Dates: The application was information collection described below. on March 16, 2017, made a final filed on October 9, 2018, and amended In accordance with the Paperwork distribution to its shareholders based on on December 10, 2018. Reduction Act of 1995, we are net asset value. Expenses of $26,500 Applicant’s Address: 101 Munson requesting comments on this collection incurred in connection with the Street, Greenfield, Massachusetts from all interested individuals and reorganization were paid by the 01301–9668. organizations. The purpose of this applicant. Wright Managed Equity Trust [File No. notice is to allow 60 days for public Filing Dates: The application was 811–03489] filed on October 2, 2018, and amended comment preceding submission of the on December 7, 2018. Summary: Applicant seeks an order collection to OMB. Applicant’s Address: 6803 South declaring that it has ceased to be an DATES: The Department will accept Tucson Way, Centennial, Colorado investment company. On May 1, 2018, comments from the public up to April 80112. applicant made liquidating distributions 29, 2019. to its shareholders based on net asset ADDRESSES: You may submit comments Reaves Global Utility & Energy Income value. Expenses of $21,393 incurred in by any of the following methods: Fund [File No. 811–22633] connection with the liquidation were • Web: Persons with access to the Summary: Applicant, a closed-end paid by the applicant’s investment internet may comment on this notice by investment company, seeks an order adviser. Applicant also has retained going to www.Regulations.gov. You can declaring that it has ceased to be an $13,176 for the purpose of paying search for the document by entering

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‘‘Docket Number: DOS–2019–0002’’ in including your personal information, modernization of the CRT regime. The the Search field. Then click the will be available for public review. meeting is open to the public, up to the ‘‘Comment Now’’ button and complete capacity of the room. Requests for Abstract of Proposed Collection the comment form. reasonable accommodation should be • Email: [email protected]. The Smart Traveler Enrollment made to the email listed above, on or • Regular Mail: Send written Program (STEP) makes it possible for before March 13, 2019. The Department comments to: U.S. Department of State, U.S. nationals to register on-line from will consider requests made after that CA/OCS/PMO, SA–17, 10th Floor, anywhere in the world. In the event of date, but might not be able to Washington, DC 20522–1710 a family emergency, natural disaster or accommodate them. Information about You must include the DS form international crisis, U.S. embassies and the meeting, can be found at https:// number (if applicable), information consulates rely on this registration www.state.gov/p/wha/ci/ca/topics/ collection title, and the OMB control information to provide registrants with c78892.htm or by emailing the email number in any correspondence. critical information and assistance. One address listed above. If you are unable FOR FURTHER INFORMATION CONTACT: of the main legal authorities for use of to attend in person, you can listen to the Direct requests for additional this form is 22 U.S.C. 2715. Town Hall via phone by calling 1–800– information regarding the collection Methodology 356–8278 and entering the passcode listed in this notice, including requests 326034#. Ninety-nine percent of responses are for copies of the proposed collection Mark W. Cullinane, instrument and supporting documents, received via electronic submission on the internet. The service is available on Director, Office of Canadian Affairs, to Derek Rivers at SA–17, 10th Floor, Department of State. Washington, DC 20522–1710, who may the Department of State, Bureau of [FR Doc. 2019–03353 Filed 2–26–19; 8:45 am] be reached on 202–485–6332 or at Consular Affairs website http:// [email protected]. travel.state.gov at https://step.state.gov/ BILLING CODE 4710–29–P step/. The paper version of the SUPPLEMENTARY INFORMATION: • collection permits respondents who do Title of Information Collection: not have internet access to provide the SURFACE TRANSPORTATION BOARD Smart Traveler Enrollment Program. • information to the U.S. embassy or [Docket No. FD 36186] OMB Control Number: 1405–0152. consulate by fax, mail or in person. • Type of Request: Extension of a Currently Approved Collection. Michelle Bernier-Toth, Texas Railway Exchange LLC— • Originating Office: Bureau of Managing Director, Bureau of Consular Construction and Operation Consular Affairs, Overseas Citizens Affairs, Department of State. Exemption—in Galveston County, Texas Services (CA/OCS). [FR Doc. 2019–03409 Filed 2–26–19; 8:45 am] • Form Number: DS–4024, 4024e. BILLING CODE 4710–06–P AGENCY: Surface Transportation Board. • Respondents: United States Citizens ACTION: Issuance of Draft Environmental and Nationals. Assessment; Request for comments. • Estimated Number of Respondents: DEPARTMENT OF STATE SUMMARY: 1,010,389. [Public Notice: 10681] The Surface Transportation • Estimated Number of Responses: Board’s (Board’s) Office of 1,010,389. Town Hall Meeting on Modernizing the Environmental Analysis (OEA) has • Average Time per Response: 20 Columbia River Treaty Regime prepared a Draft Environmental minutes. Assessment (Draft EA) in response to a • Total Estimated Burden Time: AGENCY: Department of State. petition for exemption filed on 336,796 hours. ACTION: Notice of meeting. November 21, 2018 by Texas Railway • Frequency: On occasion. Exchange LLC (TREX) to construct and • Obligation to Respond: Voluntary. SUMMARY: The Department of State operate an approximately 2,800-foot line We are soliciting public comments to (Department) will hold a Town Hall of railroad in the City of Galveston, permit the Department to: meeting, co-hosted by the Northwest Galveston County, Texas. The proposed • Evaluate whether the proposed Power and Conservation Council, in rail line would connect the Texas information collection is necessary for Kalispell, Montana, to discuss the International Terminals facility (the the proper functions of the Department. modernization of the Columbia River Terminal) on Galveston Bay with an • Evaluate the accuracy of our Treaty (CRT) regime. existing line of railroad operated by estimate of the time and cost burden for DATES: The meeting will be held on BNSF Railway Company by crossing an this proposed collection, including the March 20, 2019, from 5:30 p.m. to existing Union Pacific Railroad rail line. validity of the methodology and approximately 7:00 p.m., Mountain The proposed rail line would offer a assumptions used. Time. new alternative rail transportation • Enhance the quality, utility, and ADDRESSES: The meeting will be held at option for rail traffic entering and clarity of the information to be the Red Lion Hotel Grand Ballroom, 20 leaving the Terminal. collected. The Draft EA evaluates the potential • S Main St., Suite 150, Kalispell, MT Minimize the reporting burden on 59901. environmental impacts of two those who are to respond, including the alternative rail alignments, as well as use of automated collection techniques FOR FURTHER INFORMATION CONTACT: the No-Action Alternative and or other forms of information Julien Katchinoff, Deputy Negotiator, preliminarily concludes that technology. Office of Canadian Affairs, construction of the proposed rail line Please note that comments submitted [email protected], 202– connection would have no significant in response to this Notice are public 647–2228. environmental impacts if the Board record. Before including any detailed SUPPLEMENTARY INFORMATION: This imposes and TREX implements the personal information, you should be Town Hall is part of the Department’s recommended mitigation measures set aware that your comments as submitted, public engagement on the forth in the Draft EA. The entire Draft

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EA is available on the Board’s website 2301 Peger Rd., Fairbanks, AK 99709. capacity enhancements and other (www.stb.dot.gov) by clicking on the Telephone: (907) 451–2216. improvements (Proposed Action) at ‘‘Decisions & Notices’’ button that Written comments on the Sponsor’s Charlotte Douglas International Airport, appears in the drop down menu for request must be delivered or mailed to: Charlotte, NC. ‘‘ELIBRARY,’’ and searching by Service Molly Lamrouex, Compliance Manager, Date (February 22, 2019) or Docket Federal Aviation Administration, SUMMARY: The Federal Aviation Number (FD 36186). Airports Anchorage Regional Office, 222 Administration (FAA) announces that it has discontinued preparation of an DATES: The EA is available for public W 7th Avenue, Anchorage AK 99513, Environmental Impact Statement (EIS) review and comment. Comments must Telephone Number: (907) 271–5439/ for proposed capacity enhancements be postmarked by March 14, 2019. OEA FAX Number: (907) 271–2851. and other improvements (Proposed will consider and respond to comments FOR FURTHER INFORMATION CONTACT: Action) at Charlotte Douglas received on the Draft EA in the Final Molly Lamrouex, Compliance Manager, International Airport (CLT), Charlotte, EA. The Board will issue a final Federal Aviation Administration, NC. The Proposed Action initially decision on the proposed transaction Alaskan Region Airports District Office, presented to the FAA entailed: (1) A after issuance of the Final EA. 222 W 7th Avenue, Anchorage, AK Fourth 12,000-foot Parallel Runway 1– Filing Environmental Comments: 99513. Telephone Number: (907) 271– 19 and End-Around Taxiways; (2) Comments submitted by mail should be 5439/FAX Number: (907) 271–2851. Concourse B and Ramp Expansion; (3) addressed to: Josh Wayland, Surface SUPPLEMENTARY INFORMATION: The FAA Concourse C and Ramp Expansion; and Transportation Board, 395 E Street SW, invites public comment on the request (4) Daily North Parking Deck. Based on Washington, DC 20423. Comments on to release the aeronautical use only developments during the National the Draft EA may also be filed grant provision for a portion of lease Lot Environmental Policy Act, 42 U.S.C. electronically on the Board’s website, 1A, Block 700 at the Deadhorse Airport 4321 et seq. (NEPA), review process, the www.stb.dot.gov, by clicking on the ‘‘E (SCC) under the provisions of 49 U.S.C. project now subject to environmental FILING’’ link. Please refer Docket No. 47107(h)(2). The Alaska Department of review includes a fourth parallel FD 36186 in all comments, including Transportation and Public Facilities has runway of only 10,000 feet. The FAA electronic filings. requested from the FAA that a portion of airport property currently leased to determined that this was a sufficient FOR FURTHER INFORMATION CONTACT: Josh Deadhorse Aviation Center be released change to one of the proposed capacity Wayland by mail at the address above, for an interim non-aeronautical use. The enhancements, as described in greater by telephone at 202–245–0330, or by FAA has determined that the release of detail below in the Supplementary email at [email protected]. the property will not impact future Information section of this Notice, to By the Board, Victoria Rutson, aviation needs at the airport. The FAA warrant cancellation of the EIS and Director, Office of Environmental may approve the request, in whole or in conversion to an Environmental Analysis. part, no sooner than 30 days after the Assessment (EA). Regena Smith-Bernard, publication of this notice. DATES: Cancellation of this EIS is Clearance Clerk. The disposition of proceeds from the immediate. [FR Doc. 2019–03363 Filed 2–26–19; 8:45 am] non-aeronautical lease of the airport ADDRESSES: Mail all comments, property will be in accordance with BILLING CODE 4915–01–P statements, or questions concerning this FAA’s Policy and Procedures notice to: Mr. Tommy L. Dupree, Concerning the Use of Airport Revenue, Assistant Manager, Memphis Airports published in the Federal Register on District Office, 2600 Thousand Oaks DEPARTMENT OF TRANSPORTATION February 16, 1999 (64 FR 7696). Blvd., Suite 2250, Memphis, TN 38118. Federal Aviation Administration Issued in Anchorage, Alaska, on February You may also send comments to 19, 2019. [email protected]. Public Notice for Intent To Release Kristi Warden, In addition, one copy of any comment Airport Property Acting Director, Alaskan Airports Regional submitted to the FAA should be mailed Office, FAA, Alaskan Region. or delivered to Mr. Jack Christine, Chief AGENCY: Federal Aviation [FR Doc. 2019–03334 Filed 2–26–19; 8:45 am] Operating Officer, City of Charlotte Administration (FAA), DOT. BILLING CODE 4910–13–P Aviation Department, 5601 Wilkinson ACTION: Notice of intent to rule on Boulevard, Charlotte, NC 28208. request to release airport property for SUPPLEMENTARY INFORMATION: On March non-aeronautical use; Deadhorse Airport DEPARTMENT OF TRANSPORTATION 22, 2018, the FAA published in the (SCC), Deadhorse, Alaska. Federal Register a Notice of Intent (NOI) Federal Aviation Administration to prepare an EIS and to conduct public SUMMARY: The FAA proposes to rule and and agency scoping meetings (Volume invites public comment on the release of Notice of Cancellation of Environmental Impact Statement for 83, Number 05583, FR 12369–12640). land at the Deadhorse Airport, The FAA held two governmental agency Deadhorse, Alaska. Proposed Capacity Enhancements and Other Improvements at Charlotte scoping meetings for Federal, state, and DATES: Comments must be received on Douglas International Airport, local regulatory agencies in Raleigh, NC, or before March 29, 2019. Charlotte, Mecklenburg County, NC on April 24, 2018 and Charlotte, NC, on ADDRESSES: Documents are available for April 25, 2018, in addition to two public review by appointment at the FAA AGENCY: Federal Aviation scoping meetings for the general public Anchorage Airports Regional Office, Administration (FAA), Department of in Charlotte, NC, on April 24 and 26, Molly Lamrouex, Compliance Manager, Transportation (DOT). 2018. FAA issued a Notice to Proceed 222 W 7th Avenue, Anchorage, AK. ACTION: Notice of Cancellation of for the EIS April 24, 2017. Telephone: (907) 271–5439/Fax: (907) Preparation of Environmental Impact In October 2018, FAA conducted an 271–2851 and the Alaska Dept. of Statement (EIS) by the Federal Aviation EIS runway length analysis for the Transportation and Public Facilities, Administration (FAA) for proposed proposed 12,000-foot runway, and the

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analysis determined that only a 10,000- available on the project website at: ‘‘Public Participation’’ portion of the foot runway was required to meet the www.clteis.com. SUPPLEMENTARY INFORMATION section for purpose and need. The analysis was Issued in Memphis, Tennessee on February instructions on submitting comments. coordinated with the City of Charlotte 21, 2019. FOR FURTHER INFORMATION CONTACT: Ms. and its airline tenants. Given this Phillip J. Braden, Christine A. Hydock, Chief, Medical change to a major element of the Manager, Memphis Airports District Office, Programs Division, (202) 366–4001, sponsor’s Proposed Action, the FAA Southern Region. [email protected], FMCSA, began a process of reevaluating the [FR Doc. 2019–03434 Filed 2–26–19; 8:45 am] Department of Transportation, 1200 appropriate level of environmental BILLING CODE 4910–13–P New Jersey Avenue SE, Room W64–224, documentation for compliance with Washington, DC 20590–0001. Office NEPA, the Council on Environmental hours are from 8:30 a.m. to 5 p.m., ET, Quality Regulations for Implementing DEPARTMENT OF TRANSPORTATION Monday through Friday, except Federal the Procedural Provisions of NEPA (40 holidays. If you have questions Code of Federal Regulations parts 1500– Federal Motor Carrier Safety regarding viewing or submitting 1508), FAA Order 1050.1F, Administration material to the docket, contact Docket Environmental Impacts: Policies and [Docket No. FMCSA–2018–0403] Services, telephone (202) 366–9826. Procedures, and FAA Order 5050.4B, SUPPLEMENTARY INFORMATION: National Environmental Policy Act Qualification of Drivers; Exemption (NEPA) Implementing Instructions for I. Public Participation Applications; Implantable Cardioverter Airport Actions. This evaluation Defibrillators A. Submitting Comments focused on likely changes to environmental impacts anticipated to AGENCY: Federal Motor Carrier Safety If you submit a comment, please occur as a result of the runway length Administration (FMCSA), DOT. include the docket number for this notice (Docket No. FMCSA–2018–0403), change. ACTION: Notice of applications for In determining the appropriate level indicate the specific section of this exemption; request for comments. of environmental review going forward, document to which each comment the sponsor, at the request of the FAA, SUMMARY: FMCSA announces receipt of applies, and provide a reason for each has performed a preliminary noise applications from seven individuals for suggestion or recommendation. You analysis of the revised Proposed Action. an exemption from the prohibition in may submit your comments and In addition, the FAA has evaluated the Federal Motor Carrier Safety material online or by fax, mail, or hand potential changes in other anticipated Regulations (FMCSRs) against operation delivery, but please use only one of environmental impact categories. The of a commercial motor vehicle (CMV) by these means. FMCSA recommends that FAA has also considered potential persons with a current clinical diagnosis you include your name and a mailing mitigation for such impacts. In light of of myocardial infarction, angina address, an email address, or a phone this review, the FAA anticipates that pectoris, coronary insufficiency, number in the body of your document compliance with NEPA can adequately thrombosis, or any other cardiovascular so that FMCSA can contact you if there be achieved by preparation of an EA. disease of a variety known to be are questions regarding your The City of Charlotte will be responsible accompanied by syncope, dyspnea, submission. for the development of the EA in collapse, or congestive heart failure. If To submit your comment online, go to accordance with NEPA, all applicable granted, the exemptions would enable http://www.regulations.gov, put the federal regulations, and FAA guidance. these individuals with implantable docket number, FMCSA–2018–0403, in In addition, the FAA will work with the cardioverter defibrillators (ICDs) to the keyword box, and click ‘‘Search.’’ City of Charlotte to ensure an operate CMVs in interstate commerce. When the new screen appears, click on appropriate level of public involvement the ‘‘Comment Now!’’ button and type DATES: is provided as part of the EA process. Comments must be received on your comment into the text box on the Once completed, the City will forward or before March 29, 2019. following screen. Choose whether you the environmental document to the ADDRESSES: You may submit comments are submitting your comment as an FAA. The FAA remains the responsible identified by the Federal Docket individual or on behalf of a third party Federal agency for compliance with the Management System (FDMS) Docket ID and then submit. requirements of NEPA. In this capacity, FMCSA–2018–0403 using any of the If you submit your comments by mail FAA will make its own independent following methods: or hand delivery, submit them in an • evaluation of the environmental issues Federal eRulemaking Portal: Go to unbound format, no larger than 81⁄2 by and take responsibility for the scope and http://www.regulations.gov. Follow the 11 inches, suitable for copying and content of the EA. The FAA also will online instructions for submitting electronic filing. If you submit make a final decision on whether it can comments. comments by mail and would like to issue a satisfactory environmental • Mail: Docket Management Facility; know that they reached the facility, finding based upon the EA. The FAA U.S. Department of Transportation, 1200 please enclose a stamped, self-addressed will thereafter determine whether it may New Jersey Avenue SE, West Building postcard or envelope. take the federal actions necessary to Ground Floor, Room W12–140, FMCSA will consider all comments allow implementation of the project. All Washington, DC 20590–0001. and material received during the questions concerning the development, • Hand Delivery: West Building comment period. commencement, and public notices Ground Floor, Room W12–140, 1200 related to the EA, should be directed to New Jersey Avenue SE, Washington, B. Viewing Documents and Comments The City of Charlotte Aviation DC, between 9 a.m. and 5 p.m., ET, To view comments, as well as any Department, Mr. Jack Christine, Chief Monday through Friday, except Federal documents mentioned in this notice as Operating Officer, 5601 Wilkinson Holidays. being available in the docket, go to Boulevard, Charlotte, NC 28208. • Fax: 1–202–493–2251. http://www.regulations.gov. Insert the More information on the Proposed To avoid duplication, please use only docket number, FMCSA–2018–0319, in Action and the NEPA process is one of these four methods. See the the keyword box, and click ‘‘Search.’’

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Next, click the ‘‘Open Docket Folder’’ to operate a CMV in interstate not lose consciousness. Prior to and button and choose the document to commerce. [49 CFR part 391, since that event, the device has not review. If you do not have access to the APPENDIX A TO PART 391—MEDICAL deployed and he has maintained a internet, you may view the docket ADVISORY CRITERIA, section D. stable cardiac status. online by visiting the Docket Cardiovascular: § 391.41(b)(4), Management Facility in Room W12–140 paragraph 4.] The advisory criteria William Allan Spivey on the ground floor of the DOT West states that ICDs are disqualifying due to Mr. Spivey is a Class A CDL holder Building, 1200 New Jersey Avenue SE, risk of syncope. in North Carolina. A January 2019, letter Washington, DC 20590, between 9 a.m. III. Qualifications of Applicants from his cardiologist reports that his and 5 p.m., ET, Monday through Friday, ICD was implanted in March of 2018. except Federal holidays. Mark Caviola His cardiologist reports that he has C. Privacy Act Mr. Caviola is commercial motor never received shocks from his device, In accordance with 5 U.S.C. 553(c), vehicle driver who resides in New York at times has symptoms of shortness of DOT solicits comments from the public and operates in Connecticut. A June breath and occasional fatigue after to better inform its rulemaking process. 2018, Physician’s Statement from his extended walking, and his current DOT posts these comments, without cardiologist to the New York State cardiac condition is stable. Department of Motor Vehicles states edit, including any personal information Aaron J. Thomas the commenter provides, to that his ICD was implanted in 2005 and www.regulations.gov, as described in during his ICD treatment has had no Mr. Thomas is a commercial motor the system of records notice (DOT/ALL– therapies, history of syncope, or loss of vehicle driver in Georgia. A December 14 FDMS), which can be reviewed at consciousness, with symptoms only 2018, letter from his cardiologist reports www.dot.gov/privacy. limited to palpitations. that Mr. Thomas was implanted with an ICD in November of 2018, and is John J. Groff II. Background recovering well. He requires follow-up Under 49 U.S.C. 31136(e) and 31315, Mr. Groff is a Class A CDL holder in every six months for proper monitoring FMCSA may grant an exemption from Pennsylvania. A November 2018, report of his ICD and denies shortness of the FMCSRs for a five-year period if it from his cardiologist states that his breath or chest pain. finds such exemption would likely CRT–D device was implanted in August Request for Comments achieve a level of safety that is of 2018, and following placement he equivalent to, or greater than, the level showed likely improvement of his In accordance with 49 U.S.C. 31136(e) that would be achieved absent such ejection fraction to the 40–45 percent and 31315, FMCSA requests public exemption. The statute also allows the range. His cardiologist reports that he comment from all interested persons on Agency to renew exemptions at the end has never had required device therapies. the exemption petitions described in of the five-year period. FMCSA grants this notice. We will consider all exemptions from the FMCSRs for a two- Kevin L. Krueger comments received before the close of year period to align with the maximum Mr. Krueger is a commercial motor business on the closing date indicated duration of a driver’s medical vehicle driver in Nebraska. August and in the dates section of the notice. certification. December 2018 medical documentation Issued on: February 14, 2019. The seven individuals listed in this from his cardiologist reports that a dual Larry W. Minor, notice have requested an exemption chamber ICD was implanted in 2009 Associate Administrator for Policy. from 49 CFR 391.41(b)(4). Accordingly, and changed to a biventricular ICD in the Agency will evaluate the [FR Doc. 2019–03384 Filed 2–26–19; 8:45 am] January of 2018. His report indicated BILLING CODE 4910–EX–P qualifications of each applicant to ongoing monitoring of his device and determine whether granting the that he is tolerating medical therapy. exemption will achieve the required level of safety mandated by statute. Michael R. Miller DEPARTMENT OF THE TREASURY The physical qualification standard found in 49 CFR 391.41(b)(4) states that Mr. Miller is a Class A CDL holder in California. A January 2019 letter from Agency Information Collection a person is physically qualified to drive Activities; Submission for OMB a CMV if that person has no current his cardiologist reports that his ICD was implanted in September of 2018, and Review; Comment Request; Form clinical diagnosis of myocardial 5495—Request for Discharge From infarction, angina pectoris, coronary that he has not received any type of defibrillation since implantation, has Personal Liability Under Internal insufficiency, thrombosis, or any other Revenue Code Section 2204 or 6905 cardiovascular disease of a variety not had cardiovascular complaints and known to be accompanied by syncope, is compliant with his current medical AGENCY: Departmental Offices, U.S. dyspnea, collapse, or congestive cardiac regime. Department of the Treasury. failure. Anthony Saitta ACTION: Notice. In addition to the regulations, FMCSA has published advisory criteria 1 to Mr. Saitta is a commercial motor SUMMARY: The Department of the assist Medical Examiners in vehicle driver in New York. An undated Treasury will submit the following determining whether drivers with letter from his cardiologist reports that information collection requests to the certain medical conditions are qualified his ICD was implanted in 2007 and that Office of Management and Budget since implantation the device deployed (OMB) for review and clearance in 1 See http://www.ecfr.gov/cgi-bin/text-idx? once in 2016 inappropriately for atrial accordance with the Paperwork SID=e47b48a9ea42dd67d999246e23d97970&mc= tachycardia with rapid ventricular rate. Reduction Act of 1995, on or after the true&node=pt49.5.391&rgn=div5#ap49.5.391_171.a and https://www.gpo.gov/fdsys/pkg/CFR-2015- The letter states that Mr. Saitta reported date of publication of this notice. The title49-vol5/pdf/CFR-2015-title49-vol5-part391- no symptoms other than feeling the public is invited to submit comments on appA.pdf. shock from the device, and that he did these requests.

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DATES: Comments should be received on DEPARTMENT OF THE TREASURY Regulations, 31 CFR part 561 (the or before March 29, 2019 to be assured ‘‘IFSR’’), specifies that a U.S. financial of consideration. Agency Information Collection institution that maintained a Activities; Submission for OMB correspondent account or payable- ADDRESSES: Send comments regarding Review; Comment Request; Iranian through account for a foreign financial the burden estimate, or any other aspect Financial Sanctions Regulations institution whose name is added to the of the information collection, including Report on Closure by U.S. Financial Part 561 List on OFAC’s website suggestions for reducing the burden, to Institutions of Correspondent (www.treasury.gov/ofac) as subject to a (1) Office of Information and Regulatory Accounts and Payable-Through prohibition on the maintaining of such Affairs, Office of Management and Accounts accounts must file a report with OFAC Budget, Attention: Desk Officer for that provides full details on the closing Treasury, New Executive Office AGENCY: Departmental Offices, U.S. of each such account within 30 days of Building, Room 10235, Washington, DC Department of the Treasury. the closure of the account. This 20503, or email at OIRA_Submission@ ACTION: Notice. collection of information assists in OMB.EOP.gov and (2) Treasury PRA verifying that U.S. financial institutions Clearance Officer, 1750 Pennsylvania SUMMARY: The Department of the are complying with prohibitions on Ave. NW, Suite 8100, Washington, DC Treasury will submit the following maintaining correspondent accounts or 20220, or email at [email protected]. information collection requests to the Office of Management and Budget payable through accounts for foreign FOR FURTHER INFORMATION CONTACT: (OMB) for review and clearance in financial institutions listed on the Part Copies of the submissions may be accordance with the Paperwork 561 List. obtained from Jennifer Quintana by Reduction Act of 1995, on or after the Form: None. emailing [email protected], calling Affected Public: Businesses or other date of publication of this notice. The (202) 622–0489, or viewing the entire for-profits. public is invited to submit comments on information collection request at Estimated Number of Respondents: 1. these requests. www.reginfo.gov. Frequency of Response: On Occasion. DATES: Comments should be received on Estimated Total Number of Annual SUPPLEMENTARY INFORMATION: or before March 29, 2019 to be assured Responses: 1. of consideration. Internal Revenue Service (IRS) Estimated Time per Response: 2 ADDRESSES: Send comments regarding hours. Title: Form 5495—Request for the burden estimate, or any other aspect Estimated Total Annual Burden Discharge from Personal Liability under of the information collection, including Hours: 2. Internal Revenue Code Section 2204 or suggestions for reducing the burden, to Authority: 44 U.S.C. 3501 et seq. 6905. (1) Office of Information and Regulatory Dated: February 21, 2019. OMB Control Number: 1545–0432. Affairs, Office of Management and Budget, Attention: Desk Officer for Spencer W. Clark, Type of Review: Extension without Treasury PRA Clearance Officer. change of a currently approved Treasury, New Executive Office [FR Doc. 2019–03336 Filed 2–26–19; 8:45 am] collection. Building, Room 10235, Washington, DC 20503, or email at OIRA_Submission@ BILLING CODE 4810–25–P Description: Form 5495 provides OMB.EOP.gov and (2) Treasury PRA guidance under sections 2204 and 6905 Clearance Officer, 1750 Pennsylvania for executors of estates and fiduciaries Ave. NW, Suite 8100, Washington, DC DEPARTMENT OF VETERANS of decedent’s trusts. The form, filed after 20220, or email at [email protected]. AFFAIRS regular filing of an Estate, Gift, or FOR FURTHER INFORMATION CONTACT: Income tax return for a decedent, is Copies of the submissions may be Veterans’ Family, Caregiver, and used by the executor or fiduciary to obtained from Jennifer Quintana by Survivor Advisory Committee, Notice request discharge from personal liability emailing [email protected], calling of Meeting for any deficiency for the tax and (202) 622–0489, or viewing the entire periods shown on the form. The Department of Veterans Affairs information collection request at (VA) gives notice under the Federal Form: 5495. www.reginfo.gov. Advisory Committee Act that the Affected Public: Individuals and SUPPLEMENTARY INFORMATION: Veterans’ Family, Caregiver, and households. Survivor Advisory Committee will meet Estimated Number of Respondents: Departmental Offices (DO) on March 26–27, 2019. The meeting will 1,800. Title: Iranian Financial Sanctions be held at the Department of Veterans Frequency of Response: On Occasion. Regulations Report on Closure by U.S. Affairs, 810 Vermont Avenue NW, Financial Institutions of Correspondent Room 230, Washington, DC 20420. Both Estimated Total Number of Annual Accounts and Payable-Through sessions will begin at 9:00 a.m. (EST) Responses: 25,000. Accounts. each day. The session on March 26 will Estimated Time per Response: 12.26 OMB Control Number: 1505–0243. adjourn at approximately 5:00 p.m. The hours. Type of Review: Extension without session on the March 27 (in the Suite Estimated Total Annual Burden change of a currently approved 140 Conference Room) will adjourn at Hours: 306,500. collection. approximately 3:00 p.m. The meetings Authority: 44 U.S.C. 3501 et seq. Description: This application is are open to the public. submitted to extend the information The purpose of the Committee is to Dated: February 21, 2019. collection authority pertaining to the advise the Secretary of Veterans Affairs Spencer W. Clark, Iranian Financial Sanctions Regulations on matters related to: Veterans’ families, Treasury PRA Clearance Officer. set forth in 31 CFR part 561 (the caregivers, and survivors across all [FR Doc. 2019–03335 Filed 2–26–19; 8:45 am] ‘‘Regulations’’). Section 561.504(b) of generations, relationships, and Veterans BILLING CODE 4830–01–P the Iranian Financial Sanctions status; the use of VA care and benefits

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services by Veterans’ families, Care; update on Tragedy Assistance In the interest of time, each speaker will caregivers, and survivors, and possible Program (TAPS) and their collaboration be held to a 5-minute time limit. expansion of such care and benefits with VA’s Research Advisory Because the meeting is being held in services; Veterans’ family, caregiver, Committee on Gulf War Veterans’ a government building, a photo I.D. and survivor experiences; VA policies, Illnesses; and updates from the Office of must be presented at the Guard’s Desk regulations, and administrative Suicide Prevention and Office of as a part of the clearance process. To requirements related to the transition of Survivors. There will be opening prevent delays, you should allow an Servicemembers from the Department of remarks from VA senior leaders additional 30 minutes before the Defense (DoD) to enrollment in VA that including the Chief Veterans Experience meeting begins to clear security. If you impact Veterans’ families, caregivers, Officer and the Committee Chair and a are interested in attending, please and survivors; and factors that influence presentation on the Recommendations submit your name to Betty Moseley access to, quality of, and accountability this Committee submitted in November Brown by March 22, 2019 to help for services and benefits for Veterans’ 2018. Committee members will also expedite the security clearance process. families, caregivers, and survivors. discuss the committee work plan and Any member of the public seeking On March 26 and 27, the agenda will future activities. Public comments will additional information should contact include information on the pilot be received at 4:00 p.m. to 5:00 p.m. on Betty Moseley Brown at (202) 465–6199 research from the Center for Excellence, or at [email protected]. updates from the Veterans Experience March 26, 2019. Office (VEO) White House Hotline Individuals wishing to speak should Dated: February 22, 2019. (regarding comments from Veterans’ contact Dr. Betty Moseley Brown at Jelessa M. Burney, families, caregivers, and survivors), an [email protected] and are Federal Advisory Committee Management update on the Mission Act requested to submit a 1–2 page Officer. Implementation and Expansion of the summary of their comments for [FR Doc. 2019–03415 Filed 2–26–19; 8:45 am] Stipend Program to Pre-9/11/Inclusive inclusion in the official meeting record. BILLING CODE P

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Part II

Department of the Treasury

Internal Revenue Service 26 CFR Part 301 Centralized Partnership Audit Regime; Final Rule

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DEPARTMENT OF THE TREASURY concerning the regulations relating to (June 2017 NPRM) proposing rules section 1446, Ronald M. Gootzeit of the under section 6221 regarding the scope Internal Revenue Service Office of Associate Chief Counsel and election out of the centralized (International), (202) 317–4953 (not toll- partnership audit regime, section 6222 26 CFR Part 301 free numbers). regarding consistent treatment by [TD 9844] SUPPLEMENTARY INFORMATION: partners, section 6223 regarding the partnership representative, section 6225 RIN 1545–BO03; 1545–BO04 Background regarding partnership adjustments made This document contains final by the IRS and determination of the Centralized Partnership Audit Regime regulations under sections 6221 through amount of the partnership’s liability AGENCY: Internal Revenue Service (IRS), 6241 of the Internal Revenue Code (referred to as the imputed Treasury. (Code) to amend the Procedure and underpayment), section 6226 regarding Administration Regulations (26 CFR ACTION: Final regulation. the alternative to payment of the part 301) to implement the centralized imputed underpayment by the SUMMARY: This document contains final partnership audit regime enacted by partnership, section 6227 regarding regulations implementing the section 1101 of the Bipartisan Budget administrative adjustment requests centralized partnership audit regime. Act of 2015, Public Law 114–74 (BBA), (AARs), and section 6241 regarding These final regulations affect as amended by the Protecting definitions and special rules. The partnerships for taxable years beginning Americans from Tax Hikes Act of 2015, Treasury Department and the IRS after December 31, 2017 and ending Public Law 114–113, div Q (PATH Act), received written public comments in after August 12, 2018, as well as and sections 201 through 207 of the Tax response to the regulations proposed in partnerships that make the election to Technical Corrections Act of 2018, the June 2017 NPRM, and a public apply the centralized partnership audit contained in Title II of Division U of the hearing regarding the proposed regime to partnership taxable years Consolidated Appropriations Act of regulations was held on September 18, beginning on or after November 2, 2015, 2018, Public Law 115–141 (TTCA). 2017. and before January 1, 2018. Section 1101(a) of the BBA removed On November 30, 2017, the Treasury former subchapter C of chapter 63 of the Department and the IRS published in DATES: Code effective for partnership taxable Effective date: These regulations are the Federal Register (82 FR 56765) a years beginning after December 31, effective on February 27, 2019. notice of proposed rulemaking (REG– Applicability Date: For dates of 2017. Former subchapter C of chapter 63 119337–17) (November 2017 NPRM) of the Code contained the unified applicability, see §§ 301.6221(a)–1(c); proposing rules regarding international partnership audit and litigation rules 301.6222–1(e); 301.6225–1(i); 301.6225– provisions under the centralized enacted by the Tax Equity and Fiscal 2(g); 301.6225–3(e); 301.6226–1(g); partnership audit regime, including Responsibility Act of 1982, Public Law 301.6226–2(h); 301.6226–3(i); 301.6227– rules relating to the withholding of tax 97–248 (TEFRA) that were commonly on foreign persons, the withholding of 1(h); 301.6227–2(e); 301.6227–3(d); referred to as the TEFRA partnership tax to enforce reporting on certain 301.6231–1(h); 301.6232–1(f); procedures or simply TEFRA. Section foreign accounts, and the treatment of 301.6233(a)–1(d); 301.6233(b)–1(e); 1101(b) of the BBA also removed creditable foreign tax expenditures of a 301.6234–1(f); 301.6235–1(f); 301.6241– subchapter D of chapter 63 of the Code partnership. No written comments were 1(b); 301.6241–2(b); 301.6241–3(g); and part IV of subchapter K of chapter submitted in response to this NPRM, 301.6241–4(b); 301.6241–5(d); 1 of the Code, rules applicable to and no hearing was requested or held. 301.6241–6(c). electing large partnerships, effective for On December 19, 2017, the Treasury FOR FURTHER INFORMATION CONTACT: partnership taxable years beginning Department and the IRS published in Concerning the regulations under after December 31, 2017. Section the Federal Register (82 FR 60144) a sections 6221, 6226, 6235, and 6241, 1101(c) of the BBA replaced the TEFRA notice of proposed rulemaking (REG– Jennifer M. Black of the Office of partnership procedures and the rules 120232–17 and REG–120233–17) Associate Chief Counsel (Procedure and applicable to electing large partnerships (December 2017 NPRM) proposing Administration), (202) 317–6834; with a centralized partnership audit administrative and procedural rules concerning the regulations under regime that determines adjustments and, under the centralized partnership audit sections 6225, 6231, and 6234, Joy E. in general, determines, assesses, and regime, including rules addressing Gerdy-Zogby of the Office of Associate collects tax at the partnership level. assessment and collection, penalties and Chief Counsel (Procedure and Section 1101(g) of the BBA set forth the interest, periods of limitations on Administration), (202) 317–6834; effective dates for these statutory making partnership adjustments, and concerning the regulations under amendments, which are effective judicial review of partnership sections 6222, 6227, 6232, and 6233, generally for returns filed for adjustments. The regulations proposed Steven L. Karon of the Office of partnership taxable years beginning in the December 2017 NPRM also Associate Chief Counsel (Procedure and after December 31, 2017. provided rules addressing how pass- Administration), (202) 217–6834; On December 18, 2015, section 1101 through partners take into account concerning the regulations under of the BBA was amended by the PATH adjustments under the alternative to section 6225 relating to creditable Act. The amendments under the PATH payment of the imputed underpayment foreign tax expenditures, Larry R. Act are effective as if included in described in section 6226 and under Pounders, Jr. of the Office of Associate section 1101 of the BBA, and therefore, rules similar to section 6226 when a Chief Counsel (International), (202) subject to the effective dates in section partnership files an AAR under section 317–5465; concerning the regulations 1101(g) of the BBA. 6227. Written comments were received relating to chapters 3 and 4 of the On June 14, 2017, the Department of in response to the December 2017 Internal Revenue Code (other than the Treasury (Treasury Department) and NPRM. However, no hearing was section 1446), Subin Seth of the Office the IRS published in the Federal requested or held. of Associate Chief Counsel Register (82 FR 27334) a notice of On January 2, 2018, the Treasury (International), (202) 317–5003; and proposed rulemaking (REG–136118–15) Department and the IRS published in

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the Federal Register (82 FR 28398) final later in section 3.B.i of the Summary of language that was revised. All regulations under section 6221(b) Comments and Explanation of applicability dates were revised to providing rules for electing out of the Revisions. The Treasury Department provide that the final regulations will centralized partnership audit regime. and IRS will still consider comments on not apply to taxable years that ended On February 2, 2018, the Treasury whether any issues related to before the date the August 2018 NPRM Department and the IRS published in international rules and tax-exempt was filed with the Federal Register. To the Federal Register (83 FR 4868) a partners warrant guidance either under the extent comments recommended as a notice of proposed rulemaking (REG– the centralized partnership audit regime general matter that the regulations take 118067–17) (February 2018 NPRM) provisions or under the relevant into account the TTCA amendments, proposing rules for adjusting tax provisions of the Code directly related those comments were adopted as attributes under the centralized to those areas. described in this Summary of partnership audit regime. Written After careful consideration of all Comments and Explanation of comments were received in response to written public comments received in Revisions. the February 2018 NPRM. However, no response to the June 2017 NPRM, the hearing was requested or held. December 2017 NPRM, and the August 1. Scope of the Centralized Partnership On March 23, 2018, Congress enacted 2018 NPRM, as well as statements made Audit Regime the TTCA, which made a number of during the public hearings for the June Three comments were received technical corrections to the rules under 2017 NPRM and the August 2018 regarding the scope of the centralized the centralized partnership audit NPRM, the portions of the August 2018 partnership audit regime. All of the regime. The amendments under the NPRM described in this preamble are comments concerned former proposed TTCA are effective as if included in adopted as amended by this Treasury § 301.6221(a)–1, which was issued section 1101 of the BBA, and therefore, Decision. Comments received in before the TTCA was enacted. No subject to the effective dates in section response to the February 2018 NPRM or comments were received on proposed 1101(g) of the BBA. that otherwise concern basis and tax § 301.6221(a)–1 as revised subsequent to On August 9, 2018, the Treasury attribute rules under § 301.6225–4 or the TTCA in the August 2018 NPRM. Department and the IRS published in § 301.6226–4 will be addressed in future Prior to amendment by the TTCA, the Federal Register (83 FR 39331) final guidance. For purposes of this section 6221(a) provided that any regulations under section 6223 preamble, the regulations proposed in adjustment to items of income, gain, providing rules relating to partnership the June 2017 NPRM, the November loss, deduction, or credit of a representatives and final regulations 2017 NPRM, and the December 2017 partnership shall be determined at the under § 301.9100–22 providing rules for NPRM are collectively referred to as the partnership level. Former proposed electing into the centralized partnership ‘‘former proposed regulations.’’ The § 301.6221(a)–1(b)(1)(i) had defined the audit regime for taxable years beginning regulations proposed in the August 2018 phrase ‘‘items of income, gain, loss, on or after November 2, 2015, and NPRM are referred to as the ‘‘proposed deduction, or credit’’ to mean all items before January 1, 2018. Corresponding regulations.’’ and information required to be shown, temporary regulations under or reflected, on a return of the § 301.9100–22T were also withdrawn. Summary of Comments and partnership and any information On August 17, 2018, the Treasury Explanation of Revisions contained in the partnership’s books Department and the IRS published in Thirty written comments were and records for the taxable year. One the Federal Register (83 FR 41954) a received in response to the June 2017 comment stated the definition under notice of proposed rulemaking, notice of NPRM. Five statements were provided former proposed § 301.6221(a)–1(b)(1)(i) public hearing, and withdrawal and at the public hearing held on September included items on the partnership partial withdrawal of notices of 18, 2017. Four written comments were return or in the partnership’s books and proposed rulemaking (REG–136118–15) received in response to the December records regardless of whether (i) such (August 2018 NPRM) that withdrew the 2017 NPRM. No public hearing was items or information would affect the regulations proposed in the June 2017 held. Eight written comments were income that the partnership reports or NPRM, the November 2017 NPRM, the received in response to the August 2018 (ii) the particular tax characteristics of December 2017 NPRM, and the NPRM, and one statement was provided the separate partners would affect the February 2018 NPRM, and proposed at the public hearing held on October 9, ultimate tax liability. The comment regulations reflecting the technical 2018. All of these comments (both expressed concern that, by broadly corrections enacted in the TTCA as well written and provided orally at the defining the scope of the centralized as other changes as discussed in the public hearings) have been considered, partnership audit regime, the proposed preamble to the August 2018 NPRM. and revisions to the regulations were regulations would expand the number Written public comments were received made in response to the comments. The of partnerships and partners that in response to the August 2018 NPRM, written comments received are available encounter differences between the and a public hearing regarding the for public inspection at correct tax they would have paid if they proposed regulations was held on www.regulations.gov or upon request. had properly reported, and the amount October 9, 2018. In addition to changes in response to of the imputed underpayment. No In the preambles to the June 2017 the comments, editorial revisions were changes to the regulations were made in NPRM and November 2017 NPRM, also made to correct typographical response to this comment. comments were requested regarding errors, grammatical mistakes, and The TTCA amended section 6221(a) certain international and tax-exempt erroneous cross-references. Revisions by replacing the phrase ‘‘items of aspects of the centralized partnership were also made to clarify language in income, gain, deduction, loss or credit audit regime. No comments were the proposed regulations that was of a partnership for a partnership received in response to these requests, potentially unclear. Unless specifically taxable year (and any partner’s other than a comment regarding described in this Summary of distributive share thereof)’’ with the fiduciary issues under title I of the Comments and Explanation of term ‘‘partnership-related item.’’ The Employee Retirement Income Security Revisions, such revisions were not TTCA added a definition of Act of 1974 (ERISA), which is discussed intended to change the meaning of the ‘‘partnership-related item’’ to section

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6241(2). The August 2018 NPRM Summary of Comments and Explanation items or amounts shown, or required to adopted the TTCA amendments to of Revisions. be shown, on a return of a person other section 6221(a) and 6241 by moving the Former proposed § 301.6221(a)– than the partnership (or in that person’s majority of the regulation text under 1(b)(1)(i) provided as an example of an books and records) that result after former proposed § 301.6221(a)–1 to the ‘‘item of income, gain, loss, deduction, application of the Code to a partnership- definition of ‘‘partnership-related item’’ or credit’’ any items related to related item and that take into account under proposed § 301.6241–6. Because transactions between a partnership and the facts and circumstances specific to of these changes, the comment is any person including disguised sales, that person are not partnership-related generally no longer applicable to this guaranteed payments, section 704(c) items and, therefore, are not determined section of the regulations. allocations, and transactions to which at the partnership level under the In addition, the TTCA amendments section 707 applies. Former proposed centralized partnership audit regime. address the comment’s first concern that § 301.6221(a)–1(b)(1)(i)(H). One The changes in the final regulations to the scope of former proposed comment suggested that this provision the definition of partnership-related § 301.6221(a)–1(b)(1)(i) was overly inappropriately included partner items item address the concerns raised by the broad in that it was delineated without such as a disguised fee under section comment. First, § 301.6241–1(a)(6) regard to whether items or information 707(a)(2)(A) and the gain or loss a provides that only items or amounts adjusted at the partnership level affect partner may realize from a disguised reflected, or required to be reflected on the income of the partnership. Section sale under section 707(a)(2)(B). The the partnership’s return or in its books 6241(2)(B) broadly defines a comment recommended revising the and records are with respect to the partnership-related item as any item or regulations to refer to ‘‘items of a partnership. If such items are relevant to amount with respect to the partnership partnership related to . . . transactions determining chapter 1 tax such items which is relevant in determining the tax to which section 707 applies.’’ are partnership-related items. This rule liability of any person under chapter 1 Similarly, another comment expressed applies equally to items or amounts of the Code and any partner’s concern about situations where a relating to any transaction with, liability distributive share thereof. Section partner was not acting in the partner’s of, or basis in the partnership. Second, 6241(2)(B). Nothing within that capacity as a partner, but rather as a § 301.6241–1(a)(6) further provides that definition limits the term partnership- counterparty to a transaction with the items reflected, or required to be related item to income reported by the partnership. The comment suggested reflected on the return of a person other partnership. To the contrary, that the regulations clarify that a final than the partnership or in that person’s partnership-related items are any items determination of a transaction between books and records that result after with respect to the partnership that are a partnership and a partner following an application of the Code to a partnership- examination of the partnership is not related item are not with respect to a relevant to determining any person’s binding on any third person, including partnership and, thus, not partnership- chapter 1 tax, which could include a partner not acting in its capacity as a related items. Accordingly, only items partnership expenses, credits generated partner and who was not a party to the of the partnership, as suggested by the by partnership activity, assets and examination. comment, are partnership-related items liabilities of the partnership, and any These comments are addressed by the under § 301.6241–1(a)(6). other items concerning the partnership final regulations under § 301.6241– Proposed § 301.6221(a)–1(a) provided that are relevant to someone’s chapter 1 1(a)(6) regarding the definition of that any consideration necessary to tax, irrespective of the impact such partnership-related item. Proposed make a determination at the partnership items have on the partnership’s income. § 301.6241–6(b)(4) and (5) defined the level under the centralized partnership Furthermore, the core feature of the phrase ‘‘item or amount with respect to audit regime, including the period of centralized partnership audit regime is the partnership’’ to include an item or limitations on making partnership to provide a centralized method of amount that relates to a transaction with adjustments under section 6235 or facts examining items of a partnership. the partnership by a partner acting in its necessary to calculate an imputed Adjusting items on a partnership’s capacity as a partner or by an indirect underpayment under section 6225 were return or in the partnership’s books and partner acting in its capacity as an determined at the partnership level. The records, regardless of their effect on indirect partner as well as an item or final regulations under § 301.6221(a)– partnership income, in a centralized amount relating to a transaction that is 1(b) retain this concept, but with revised partnership proceeding at the described in section 707(a)(2), 707(b), or language. The final regulations provide partnership level is not only consistent 707(c). Accordingly, under the proposed that any legal or factual determinations with this centralized approach, but it regulations if an item or amount related underlying any adjustment or also results in efficiencies because one to a transaction that is described in determination made under the proceeding can be conducted that will section 707(a)(2), 707(b), or 707(c) and centralized partnership audit regime are bind all partners and the partnership. was relevant in determining chapter 1 also determined at the partnership level See section 6223(b). Nothing in the tax, that item was a partnership-related under the centralized partnership audit statute requires only items that affect item and must be determined at the regime. For instance, such the partnership’s income, as reported on partnership level. determinations include the period of the partnership’s return, to be adjusted As described more fully in section limitations on making adjustments at the partnership level. 1.B., the final regulations clarify that under the centralized partnership audit Regarding the comment’s second items or amounts relating to regime and any determinations concern that an imputed underpayment transactions of the partnership are items necessary to calculate the imputed is determined without regard to or amounts with respect to the underpayment or any modification of partners’ tax characteristics and that the partnership only if those items or the imputed underpayment under imputed underpayment amount differs amounts are shown, or required to be section 6225. from the amount of tax the partners shown, on the partnership return or are After consideration, the Treasury would have paid had the items been required to be maintained in the Department and the IRS have concluded reported correctly, those concerns are partnership’s books and records. The that the phrase ‘‘legal and factual addressed in section 3.A. of this final regulations further clarify that determinations underlying an

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adjustment or determination’’ instead of those penalty defenses would be appears on the partnership’s return’’ the phrase ‘‘any consideration necessary communicated to partners. Other from proposed § 301.6241–6(b). That to make a determination at the comments suggested that partners phrase derived from the parenthetical in partnership level’’ more clearly and should be able to raise their own section 6241(2)(B)(i) that follows ‘‘item accurately reflects the rule that facts and partner-level defenses. In response to or amount with respect to the legal conclusions that underlie these comments, former proposed partnership.’’ The Treasury Department adjustments to partnership-related § 301.6221(a)–1(c) was removed from and the IRS have determined that the items, tax, and penalties made at the the proposed regulations in the parenthetical language describes items partnership level are also determined at December 2017 NPRM. See section 3 of or amounts that appear on the the partnership level. The revised the preamble to the December 2017 partnership return, items or amounts language more clearly describes the rule NPRM. The December 2017 NRPM also that were required to appear on the and provides taxpayers with more proposed regulations under sections return but actually did not, and items or definitive guidance regarding the items 6225 and 6226 (former proposed amounts that factor into the determined at the partnership level. §§ 301.6225–2(d)(2)(viii) and 301.6226– determination of items or amounts that Additionally, this language is consistent 3(i)) which allowed partners to raise do appear on the partnership return. with language used in proposed their own partner-level defenses at the The Treasury Department and the IRS § 301.6241–6(b)(8), which was removed time partners took into account the have concluded that this parenthetical as described in section 2 of this partnership adjustments determined at does not extend the concept of ‘‘with Summary of Comments and Explanation the partnership level (either through the respect to the partnership’’ to items or of Revisions. modification process or as part of the amounts that are reported by third Lastly, the final regulations remove election under section 6226). For further parties and that are otherwise not the list of cross-references from the end discussion of the rules regarding defined as partnership-related items in of proposed § 301.6221(a)–1(a). The partner-level defenses under sections these final regulations. See § 301.6241– TTCA amended section 6221(a) to 6225 and 6226, see sections 3.D. and 1(a)(6)(vi)(A) and (B). provide that adjustments to partnership- 4.C.ii.I. of this preamble. See also Second, the final regulations replace related items are determined at the section 8.A. of this preamble regarding the list of eight categories of items or partnership level ‘‘except to the extent section 6233(a). amounts that were with respect to the otherwise provided in’’ subchapter C of partnership with a single, streamlined chapter 63. Because the statutory B. Partnership-Related Item paragraph, § 301.6241–1(a)(6)(iii) that language is clear that there are Proposed § 301.6241–6(a) defined the includes all the items and amounts from exceptions within subchapter C of term ‘‘partnership-related item’’ as any the prior list, except as described in this chapter 63 to the general rule under item or amount with respect to the section of this preamble. Third, the section 6221(a) and § 301.6221(a)–1, the partnership which is relevant to definition of partnership-related item list of cross-references from proposed determining the tax liability of any was moved from proposed § 301.6241– § 301.6221(a)–1(a) was no longer person under chapter 1 and any 6 and placed under the definition of necessary. partner’s distributive share of any such ‘‘partnership adjustment’’ in item or amount. Proposed § 301.6241– § 301.6241–1(a)(6) to more closely track A. Penalty Defenses 6(b) provided that an item or amount is the statutory structure of section Five comments were received with with respect to the partnership without 6241(2). respect to former proposed regard to whether the item or amount The final regulations under § 301.6221(a)–1(c), which provided that appeared on the partnership return if § 301.6241–1(a)(6)(iii) maintain the rule any defense to any penalty, addition to the item or amount was described in from the proposed regulations that items tax, or additional amount must be raised one of eight categories. Two categories or amounts shown or reflected, or by the partnership in a partnership-level described items or amounts that are required to be shown or reflected, on the proceeding under the centralized shown or reflected, or required to be return of the partnership are items or partnership audit regime, regardless of shown or reflected, on a return of the amounts with respect to the partnership. whether the defense relates to facts and partnership under section 6031 or are in The final regulations also clarify that circumstances relating to a person other the partnership’s books and records. items or amounts in the partnership’s than the partnership. Once the The other categories described items or book or records are items or amounts adjustments determined in the amounts relating to certain transactions with respect to the partnership if those partnership-level proceeding became with the partnership, items or amounts items or amounts are ‘‘required to be final, no defense to any penalty relating to liabilities of the partnership maintained’’ in the partnership’s books determined could be raised or taken into provided the item or amount was and records. The phrase ‘‘required to be account. Former proposed reported by a partner, and items or maintained’’ is added to account for § 301.6221(a)–1(c). amounts relating to basis in the items that may be maintained in the Several comments stated that the rule partnership. Imputed underpayments partnership’s books and records on a under former proposed § 301.6221(a)– and any legal or factual determinations voluntary basis. For example, a 1(c) was inequitable to partners because, necessary to make an adjustment to partnership may choose to maintain the among other reasons, partners had no items or amounts described in the other outside basis of each of its partners in control over whether the partnership categories were also defined as items or its books and records, even though the representative would raise a partner- amounts with respect to the partnership. Code does not require this information specific defense, especially in the case Proposed § 301.6241–6(b)(1) through (8). be maintained by the partnership. The of indirect partners who are less directly After careful consideration, the rule make clears that the voluntary connected to the partnership Treasury Department and the IRS have recording of an item in the partnership’s representative. Some comments revised the definition of ‘‘item or books is not determinative of the recommended the regulations clarify amount with respect to the meaning of the phrase ‘‘item or amount how partner-level defenses would be partnership.’’ First, the final regulations with respect to the partnership.’’ A raised in the partnership-level remove the language ‘‘without regard to partnership cannot convert an item or proceeding and how decisions regarding whether or not such item or amount amount that is not with respect to the

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partnership into an item or amount that known by the partnership, and are either by mailing a notice of deficiency is with respect to the partnership merely based on information only within the to the partner if factual determinations by including that item or amount in the partner’s control and outside of the were necessary at the partner level or by partnership’s books and records. This partnership’s control. directly assessing tax against the rule provides consistency among In an examination of items on a partner. The tax was assessed with partnerships and more certainty partner’s return, the IRS generally needs respect to the year that was audited by regarding what items in the books and information pertaining to the partner’s the IRS, and assessments were required records of a partnership constitute items specific facts and circumstances to to be made within one year of the or amounts with respect to the determine the correctness of the items. completion of the partnership-level partnership. The partner whose items are at issue is proceeding. The final regulations do not retain the normally the best source for that type of Under the centralized partnership separate categories of items relating to information. While a partnership may audit regime, adjustments to transactions with, liabilities of, and possess some information about a partnership-related items are similarly basis in the partnership. Instead, the particular partner’s facts and determined at the partnership level. In final regulations adopt a streamlined circumstances, obtaining information stark contrast to the TEFRA procedures, approach and provide that those items from the partnership is generally not as however, the tax attributable to those are only with respect to the partnership efficient as obtaining information from adjustments is also assessed and if those items are reflected, or required the partner. Obtaining such information collected at the partnership level in the to be reflected, on the partnership’s from the partner also preserves the form of an imputed underpayment return or required to be maintained in privacy interests of the partner. determined pursuant to section 6225. its books and records. The separate Therefore, from both a taxpayer and tax An imputed underpayment is assessed treatment under the proposed administration standpoint, an as if it were a tax imposed for the regulations for these types of items and examination of items for which adjustment year, generally the year in amounts was duplicative. Items or application of the Code depends on a which the adjustments are finally amounts relating to transactions with, partner’s particular facts and determined, instead of the year that was liabilities of, and basis in the circumstances is, in general, best subject to examination. Section 6225(d). partnership are items or amounts shown performed at the partner level, rather The partnership, not the partners, is or reflected, or would be required to be than the partnership level. liable for the imputed underpayment. A Under the TEFRA procedures, these shown or reflected, on the partnership partnership may elect the alternative to return or required to be maintained in types of items were considered affected payment of the imputed underpayment the partnership’s books and records. items and adjustments to those items under section 6226 and ‘‘push out’’ the Accordingly, describing separate were computational adjustments. The adjustments determined at the categories for such items was centralized partnership audit regime is partnership level, in which case the tax unnecessary and potentially confusing. intended to have a scope sufficient to Under § 301.6241–1(a)(6)(iii), an item address those items that would have attributable to the adjustments is or amount is with respect to the been considered partnership items, assessed and collected from the partnership only if the item or amount affected items, and computational partnership’s partners. Unlike the is shown or reflected, or required to be adjustments under TEFRA, including TEFRA procedures, however, under the shown or reflected, on the partnership the regulations. Joint Comm. on push out process, assessment and return or required to be maintained in Taxation, JCX–6–18, Technical collection is initiated by the partner, the partnership’s books and records. Explanation of the Revenue Provisions rather than by the IRS, by the partner Consistent with that interpretation, the of the House Amendment to the Senate taking into account the partnership final regulations provide an item or Amendment to H.R. 1625 (Rules adjustments and self-reporting any tax amount relating to transactions with, Committee Print 115–66), 37 (2018) due on the partner’s next filed return, liabilities of, and basis in the (JCX–6–18). One way to achieve a alleviating both the administrative and partnership is with respect to the sufficiently broad scope is to attempt to timing issues that arose in TEFRA. See partnership only if the item or amount define the term ‘‘partnership-related section 2.A of the preamble to the June is reported, or required to be reported, item’’ to include those items that would 2017 NPRM. on the partnership return or is required have been partnership items, affected When calculating an imputed to be maintained in the partnership’s items, and computational adjustments underpayment based on adjustments books and records. under TEFRA. For the following determined at the partnership level, The term partnership-related item reasons, however, this approach was not taxpayer favorable adjustments are includes a partner’s distributive share of adopted. generally disregarded and the highest items or amounts that are with respect The centralized partnership audit rate of tax is applied. This formula may to the partnership which are relevant in regime is a fundamentally distinct produce an amount that is larger than determining the chapter 1 tax of any system from TEFRA. While under both the cumulative amount of tax the person. Section 6241(2)(B)(ii). In taking sets of rules adjustments are made at the partners would have paid had the into account the partner’s distributive partnership level and those adjustments partners taken the adjustments into share of partnership-related items, a are binding on partners, the framework account separately, but it also relieves partner must apply the provisions of the for assessing and collecting tax resulting the IRS of the obligation to account for Code to each partnership-related item to from those adjustments is significantly specific partner facts and circumstances compute the partner’s ultimate tax different. Under TEFRA, tax attributable when initially determining the imputed liability. The application of the Code to to partnership items determined at the underpayment amount. During the the partner’s share of partnership- partnership level and tax attributable to modification phase, a partnership may, related items requires taking into affected items was assessed against the at its option, request that the imputed account facts and circumstances that are partners of the partnership through underpayment be modified to take into unique to a particular partner. Generally computational adjustments made by the account partner tax attributes and facts speaking, those facts and circumstances IRS with respect to the partner. and circumstances. See section 3.B. for are known only by the partner, are not Computational adjustments were made further discussion.

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When taking into account adjustments items or computational adjustments. involve the partners in the examination under section 6226, a partner The final regulations do this by defining to the extent the partner’s items and determines the increase or decrease in ‘‘with respect to the partnership’’ to amounts were at issue. Requiring the tax that would have occurred if the exclude items or amounts shown, or IRS to involve potentially the many adjustments were taken into account for required to be shown, on a return of a partners in the entity level examination the partner’s tax year correlating to the person other than the partnership (or in of the partnership would undermine the year that was audited. For intervening that person’s books and records) that efficiencies of the centralized years, any year between the audited year result after application of the Code to a partnership audit regime’s concept of and the current year, the partner must partnership-related item and that take the partnership representative and the determine the effect on tax attributes of into account the facts and circumstances binding nature of the partnership the adjustments and the resulting specific to that person. Because these representative on the outcome of the increase or decrease that would have items and amounts are not with respect entity level examination. Further, if the occurred for those years as well. The to the partnership, they are not IRS did not examine all of the various partner then adjusts her tax for the partnership-related items the IRS must items or amounts on the partners’ current year by the aggregate tax that adjust at the partnership level. Two returns during the partnership level would have resulted had the examples were added to the final proceeding, the IRS would, for each of adjustments been properly taken into regulations under § 301.6241–1(a)(6)(vi) the partners’ items and amount that account. Under TEFRA, it was the IRS’s to illustrate this rule. were also partnership-related items, be burden to determine tax at the partner The definition of ‘‘with respect to the precluded from adjusting those items at level. The centralized partnership audit partnership,’’ and by extension the partner level outside of the regime, under section 6226, shifts that partnership-related item, under the final centralized partnership audit regime. burden from the IRS to the partner. As regulations preserves the centralized This would lead to an unnecessary a result, it is neither necessary nor nature of the proceeding with respect to expansion of partnership-level efficient for the IRS to determine at the the partnership. During the partnership proceedings to encompass what could partnership level the facts and level proceeding under the centralized more simply and efficiently be resolved circumstances specific to a partner in partnership audit regime, the IRS at the partner level for one or a small order for that partner to determine the adjusts items that are germane to the group of partners. proper amount of tax in the case of a partnership as an entity—that is, items i. Comments Concerning Partnership- push out. reported by the partnership on its return The rules for calculating an imputed or items in its books and records Related Item underpayment under section 6225 and generally used for purposes of One comment recommended that all the computation rules under section completing the return. The partnership partners should be audited as a group, 6226 are sufficiently broad to ensure has access to this information, and it is but only about their financial that the tax attributable to items that therefore, in general, most efficient to involvement within the scope of the would have been partnership items, obtain this information from the partnership. According to the comment, affected items, and computational partnership in the partnership level outside interests and income should not adjustments under the TEFRA is proceeding. be determined at the partnership level. collected under the centralized This rule also protects the tax and Although it is not entirely clear what partnership audit regime. When the privacy interest of partners. Under the comment includes in the phrases partnership pays an imputed section 6223, partners are bound by ‘‘financial involvement within the scope underpayment, the application of actions taken by the partnership in the of the partnership’’ and ‘‘outside limitations and restrictions is assumed partnership proceeding and by any final interests and income’’, the Treasury and favorable adjustments are decision in the partnership proceeding. Department and the IRS understand this disregarded unless a partnership Unlike under TEFRA, individual comment to be a request to limit the demonstrates that partner tax attributes partners do not have a right to scope of the items that are ‘‘with respect should override those assumptions. In participate in the partnership level to the partnership’’ for purposes of this this way, the imputed underpayment administrative or judicial proceeding. If section. Another comment suggested determination, including any items based on the application of the that the scope of the term ‘‘partnership- modifications, sufficiently accounts for Code to a particular partner based on related item’’ should not be those types of items that would have that partner’s facts and circumstances unreasonably broad, particularly with been affected items or computational were items required to be determined at respect to partner-level items where the adjustments under TEFRA. Similarly, in the partnership level, the partner may underlying issue is primarily of interest the case of an election under section be unable to dispute adjustments to to the partner and not the partnership. 6226, the re-computation process those items. And even if the partner The comment expressed concern that necessarily involves the application of were able to dispute adjustments to the partnership could have little interest items that would have been affected those items, the partner would need to in disputing a proposed adjustment that items or computational adjustments. divulge private information in a would have little impact to the Because both the imputed proceeding in which the partnership partnership but could have a dramatic underpayment rules and the section was the party, not the partner itself. effect on a particular partner. 6226 rules sufficiently address items In addition, a rule that would require These comments were adopted as that would have been partnership items, that such items and amounts be reflected in the changes to the definition affected items, and computational determined at the partnership level of ‘‘with respect to the partnership’’ adjustments, it is both unnecessary and raises significant administrative described in this section of this over-inclusive to define partnership- concerns for the IRS. In general, the preamble. Under the final regulations, related item to encompass all of those partnership would in most cases lack outside interests and income and items. Accordingly, the final regulations the facts necessary to determine items or partner-level items are not ‘‘with respect clarify that the term partnership-related amounts that depend on the facts and to the partnership’’ to the extent those item does not include items or amounts circumstances of the partners. By are not items or amounts reflected, or that would have been TEFRA affected necessity, the IRS would be required to required to be reflected, on the

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partnership return or required to be partnership. In addition to responding the partnership return filed with the maintained in the partnership’s books to these comments, this section of the IRS. and records. In addition, the items or preamble describes changes to the The clarification of the term amounts that are ‘‘with respect to the language of § 301.6222–1(a)(2) regarding ‘‘partner’s return’’ also addresses the partnership’’ as defined in § 301.6241– partners that are partnerships with an comment’s suggestion that the 1(a)(6)(iii) are generally items election in effect under section 6221(b). regulations permit inconsistent concerning the partners’ financial treatment on an amended return A. Inconsistent Treatment on an involvement within the scope of the provided the IRS is notified of that Amended Return and Definition of partnership. Accordingly, adjustments inconsistent treatment. Under Partner’s Return for Purposes of to items concerning the partners’ § 301.6222–1(c)(1), the requirement that § 301.6222–1 financial involvement within the scope a partner treat a partnership-related item of the partnership would generally be One comment recommended that the consistently with the partnership’s determined at the partnership level, and regulations clarify that a partner may treatment of that item, and the effect of adjustments to items involving outside file an amended return in order to take inconsistent treatment, do not apply to interests and income or partner-level a position inconsistent with the filed partnership-related items identified as items that result after application of the partnership return as long as such inconsistent (or that may be Code to a partnership-related item and amended return includes a statement inconsistent) in a statement attached to that take into account facts and identifying the inconsistent treatment. the partner’s return on which the circumstances specific to the partner, to Under section 6222(a), a partner shall, partnership-related item is treated the extent provided for in this section, on the partner’s return, treat each inconsistently. As clarified in these final are not determined at the partnership partnership-related item in a manner regulations, the term partner’s return for level under the centralized partnership that is consistent with the treatment of purposes of § 301.6222–1 includes any audit regime. such item on the partnership return. amendment to the partner’s original In addition to the revisions described Proposed § 301.6222–1(a) provided that return. Accordingly, so long as a partner earlier in this section of this preamble, the treatment of partnership-related notifies the IRS of an inconsistent the term imputed underpayment was items on a partner’s return must be treatment, in the form and manner moved from the definition of ‘‘item or consistent with the treatment of such prescribed by the IRS, by attaching a amount is with respect to the items on the partnership return in all statement to the partner’s return— partnership’’ to the definition of respects, including the amount, timing, including an amended return—on partnership-related item under and characterization of such items. The which the partnership-related item is § 301.6241–1(a)(6)(ii). This change term ‘‘partner’s return’’ is not defined in treated inconsistently, the consistency clarifies that an imputed underpayment either section 6222(a) or proposed requirement under § 301.6222–1(a), and is always a partnership-related item. § 301.6222–1(a). the effect of inconsistent treatment First, an imputed underpayment is a Section 6222(a) and § 301.6222–1(a) under § 301.6222–1(b), do not apply to creation of the centralized partnership are designed to ensure consistent that partnership-related item. audit regime and can only arise under treatment of partnership-related items i. Limitations on Filing Amended the centralized partnership audit on partners’ returns and the partnership Returns Reporting Inconsistent regime. See sections 6225, 6226, and return filed with the IRS, except for Positions 6227. Second, the statute expressly cases where the partner notifies the IRS defines an imputed underpayment as an of the inconsistency. The requirement to When a partner on an amended return item or amount that is with respect to be consistent with the partnership treats a partnership-related item the partnership. Section 6241(2)(B)(i). return extends to each return filed by inconsistently with how the item was Third, an imputed underpayment is the partner that reflects, or is required treated on the partnership return, the relevant in determining the liability of to reflect, partnership-related items. partner is making a request for an any person under chapter 1, as defined This includes both original and administrative adjustment of that in § 301.6241–1(a)(6)(iv), because amended returns. Any other application partnership-related item. Accordingly, payment of the imputed underpayment of this requirement would render the the rule under proposed § 301.6227–1(a) by the partnership relieves the partners requirement of consistency meaningless. that provided a partner may not request of any chapter 1 liability attributable to For example, a partner could file a an administrative adjustment of a the reviewed year partnership return on April 15 taking a consistent partnership-related item was revised to adjustments. position, only to turn around on April account for situations in which on an 16 and file an amended return taking an amended return a partner treats a 2. Partner’s Return Must Be Consistent inconsistent position. partnership-related item inconsistently With Partnership Return To clarify that the consistency with the partnership return pursuant to Five comments were received requirement under section 6222(a) and § 301.6222–1(c)(1). concerning section 6222, regarding the proposed § 301.6222–1(a) applies to Section 6227(c) provides that in no requirement that a partner’s return be each return of the partner, the final event may a partnership file an AAR consistent with the partnership return. regulations provide that the term after a notice of an administrative The comments covered the following ‘‘partner’s return’’ for purposes of proceeding with respect to the taxable topics: Inconsistent treatment in the § 301.6222–1 includes any return, year is mailed under section 6231. case of an amended return, an statement, schedule, or list, and any Consistent with section 6227(c), administrative adjustment request, or amendment or supplement thereto, filed proposed § 301.6227–1(b) provided that where no partnership return is filed; the by the partner with respect to any tax no AAR may be filed after a NAP has form and method for identifying imposed by the Internal Revenue Code. been mailed by the IRS, except as inconsistent treatment; proceedings to Accordingly, pursuant to § 301.6222– provided in § 301.6231–1(f) (regarding adjust identified, inconsistently 1(a), a partner on either an original or withdrawal of a NAP). To give effect to reported items; and the election an amended return must treat this rule in the context of inconsistent regarding consistent treatment with a partnership-related items consistently treatment, the final regulations under schedule furnished to the partner by the with how those items were treated on § 301.6222–1(c)(5) provide that a partner

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may not notify the IRS that the partner elects to have the partners take into outcome of the application of the rule is treating an item inconsistently with account the adjustments, the partners under proposed § 301.6222–1(a)(3). The the partnership return for a taxable year must follow the procedures under comment observed that without a return after a NAP with respect to such § 301.6227–3. filed by the partnership, there would partnership taxable year has been When taking into account AAR not be a return with which to make the mailed by the IRS under section 6231. adjustments under § 301.6227–3, partner’s return consistent. To illustrate This rule clarifies that once the IRS partners must adhere to the consistency the application of § 301.6222–1(a)(3), initiates an administrative proceeding requirements under section 6222(a). See Example 7 was added under with respect to a partnership taxable § 301.6222–1(a)(4) (providing § 301.6222–1(a)(5). year, any adjustment to a partnership- consistency requirement applies to the In light of the comment, the final related item for that year must be treatment of a partnership-related item regulations under § 301.6222–1(b)(1) determined exclusively within that on an AAR). Nothing in sections 6222, include the clarification that where a partnership-level proceeding in 6223(b), or 6227, however, precludes a partnership has failed to file a return, accordance with section 6221(a). partner from notifying the IRS the any treatment of a partnership-related Neither the partnership, through filing partner is taking an adjustment into item on a partner’s return may be an AAR, nor a partner, by taking an account inconsistently with how the removed, and the IRS may determine inconsistent position, may adjust a adjusted item was treated in an AAR. any underpayment of tax resulting from partnership-related item outside of that While section 6227 imposes certain such adjustment. proceeding. Any actions taken by the requirements with respect to AARs, Lastly, the final regulations eliminate partnership and any final decision in none of those requirements contradict the phrase ‘‘unless the partner files a the proceeding are binding on the section 6222(c)’s exception to the notice of inconsistent treatment in partnership and all its partners. Section consistency requirement. Accordingly, accordance with proposed § 301.6222– 6223(b). the final regulations under § 301.6222– 1(c)’’ from proposed § 301.6222–1(a)(3). 1(c)(2) remove the language stating that This change clarifies that a partner’s B. Inconsistent Treatment in the Case of the provisions of § 301.6222–1(c)(1) do treatment of an item attributable to a an Administrative Adjustment Request not apply with respect to a partner’s partnership that has not filed a return is Proposed § 301.6222–1(c)(2) provided treatment of a partnership-related item per se inconsistent, even if the partner that the notification procedures under reflected on an AAR. In addition, the notifies the IRS of the inconsistent § 301.6222–1(c) do not apply to a final regulations under § 301.6227–1 treatment. The notification under partnership-related item the treatment remove the rule under proposed § 301.6222–1(c) turns off the of which is binding on the partner § 301.6227–1(f) regarding the binding consistency requirement, but it does not because of actions taken by the nature of an AAR. As a result of these change, as a factual matter, that the partnership, or because of any final changes, a partner may notify the IRS it partner reported inconsistently. decision in a proceeding with respect to is treating an AAR-adjusted item D. Form and Method for Identifying the partnership, under the centralized inconsistently in accordance with the Inconsistent Treatment of a Partnership- partnership audit regime. Accordingly, provisions of § 301.6222–1(c). Related Item under proposed § 301.6222–1(c)(2), the The final regulations under provisions of § 301.6222–1(c) did not § 301.6222–1(c)(2) maintain the Under proposed § 301.6222–1(c)(1), in apply with respect to the partner’s language stating that the provisions of addition to the requirement that a treatment of a partnership-related item § 301.6222–1(c)(1) do not apply to a statement identifying an inconsistent reflected on an AAR. This meant that a partner’s treatment of an item reflected treatment must be attached to the partner could not treat an item on a statement under section 6226 filed partner’s return on which the item is inconsistently with how such item was by the partnership with the IRS. A treated inconsistently, the statement treated on an AAR. One comment cross-reference to § 301.6226–1(e) was must be provided to the IRS according recommended that the regulations also added. In addition, the final to the forms, instructions, and other under § 301.6222–1(c)(2) be revised to regulations clarify that the provisions of guidance prescribed by the IRS. One permit a partner to notify the IRS of an § 301.6222–1(c)(1) do not apply to any comment asked about the form and inconsistent position taken with respect item the treatment of which is binding method for providing the IRS with the to an item reported on an AAR. This on the partner because of an action statement described in proposed comment was adopted. taken by the partnership or because of § 301.6222–1(c)(1) and suggested Under section 6223(b), all partners are a final decision in a proceeding under specific format guidance in the bound by actions taken by the the centralized partnership audit regime regulations would assist the public in partnership and by any final decision with respect to the partnership. Section reporting an inconsistent treatment. with respect to the partnership under 6223(b). Items reflected on a statement This comment was not adopted. the centralized partnership audit under section 6226 filed with the IRS The final regulations maintain the regime. In the case of an AAR, section are an example of such items. rule that a partner must provide the 6223(b) binds each partner to the statement described in § 301.6222– partnership’s making of the request C. Inconsistent Treatment When No 1(c)(1) in accordance with forms, itself and the mechanism by which the Partnership Return is Filed instructions, and other guidance adjustments requested are taken into Proposed § 301.6222–1(a)(3) provided prescribed by the IRS. Prescribing the account, including any election by the that a partner’s treatment of a form and method for notifying the IRS partnership to have the partners take partnership-related item attributable to a of inconsistent treatment through forms, into account the adjustments. partnership that does not file a return is instructions, and other sub-regulatory Accordingly, if the partnership takes per se inconsistent, unless the partner guidance allows the IRS the flexibility into account the adjustments by paying files a notice of inconsistent treatment to update its procedures for identifying an imputed underpayment, the partners in accordance with proposed an inconsistency as appropriate and must follow the rules under section § 301.6222–1(c). One comment necessary without the IRS having to 6225. If there is no imputed recommended that the regulations amend the regulations. This flexibility underpayment or if the partnership include an example to illustrate the preserves government resources and

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also expedites the guidance process for to include notifying partners in the the IRS conducts a proceeding with taxpayers to be aware of changes in IRS partnership-level proceeding, rather respect to the partnership under procedures. Accordingly, the final than engaging such partners through § 301.6222–1(c)(4)(i) and at the regulations do not provide a specific deficiency procedures. conclusion of that proceeding, the IRS form or method for identifying Proposed § 301.6222–1(c)(4)(i) accepts the partnership return as filed. inconsistent treatment. provided that the IRS may adjust an The comment suggested the regulations The same comment asked whether a identified, inconsistently reported item address what procedures apply for statement identifying inconsistent in a proceeding with respect to the collection of an imputed underpayment treatment can only be filed partner. The IRS is not required to make in that scenario or for collection of tax contemporaneously with the partner’s that adjustment. The IRS may instead from the partner that filed tax return. Proposed § 301.6222–1(c) choose to make the adjustment in a inconsistently. This comment was not provided that a statement does not proceeding with respect to the adopted. identify an inconsistency unless it is partnership. To the extent the comment First, because there is no partnership attached to the partner’s return on was suggesting the IRS must adjust an adjustment in the scenario described, which the partnership-related item is identified, inconsistently reported item there is also no imputed underpayment treated inconsistently. Because the plain in a proceeding with respect to the to collect from the partnership. language of proposed § 301.6222–1(c) partner, the comment was not correct. Additionally, because there is no made clear that the statement If the IRS conducts a proceeding with imputed underpayment, the partnership identifying inconsistent treatment must respect to the partnership, that cannot make a push out election. See be attached to a return, no change was proceeding will include only the IRS, section 4.A.iii of this preamble. With made in response to this comment. the partnership, and the partnership respect to collection of tax from the representative who is acting on behalf of partner, nothing in the regulations E. Proceeding To Adjust an Identified, the partnership. No partner, except a prevents the IRS, when it conducts a Inconsistently Reported Item partner that is the partnership proceeding with respect to the If a partner fails to satisfy the representative, or any other person may partnership under § 301.6222–1(c)(4)(i), requirements of § 301.6222–1(a), the IRS participate in the partnership from also conducting a proceeding with may adjust the inconsistently reported proceeding without permission of the respect to the partner to adjust an partnership-related item on the partner’s IRS. See § 301.6223–2(d)(1). identified, inconsistently reported item. return to make it consistent with the Accordingly, while a partner is not Accordingly, no changes were made in treatment of such item on the generally included in a proceeding with response to this comment. partnership return, unless the partner respect to the partnership under the provides notice of the inconsistent centralized partnership audit regime, F. Consistent Treatment With Schedule treatment in accordance with the IRS has the authority under Furnished to the Partner by the § 301.6222–1(c). See § 301.6222–1(b). § 301.6223–2(d)(1) to allow any other Partnership Under proposed § 301.6222–1(c)(4)(i), if person, including a partner who notified Under proposed § 301.6222–1(d)(1), a a partner notifies the IRS of an the IRS of inconsistent treatment, to partner is treated as having notified the inconsistent treatment of a partnership- participate in a partnership-level IRS of treating a partnership-related related item in accordance with proceeding. Because that authority item inconsistently if the partner proposed § 301.6222–1(c)(1) and the IRS exists under § 301.6223–2, a separate demonstrates that the treatment of such disagrees with that inconsistent rule within § 301.6222–1 to allow item on the partner’s return is consistent treatment, the IRS may adjust the notifying partners to be included in a with the treatment of that item on the identified, inconsistently reported item partnership-level proceeding is statement, schedule, or other form in a proceeding with respect to the unnecessary. Therefore, the revision to prescribed by the IRS and furnished to partner. Nothing in proposed proposed § 301.6222–1(c)(4) as the partner by the partnership, and the § 301.6222–1(c)(4)(i) precluded the IRS, recommended by the comment was not partner makes a valid election under however, from also conducting a adopted. proposed § 301.6222–1(d)(2). This proceeding with respect to the All partners, including partners that election must be filed no later than 60 partnership. have filed a notice of inconsistent days after the date of such notice. One comment recommended that treatment, are bound by the actions of Proposed § 301.6222–1(d)(2). One § 301.6222–1(c)(4)(i) provide that if the the partnership and any final decision comment recommended that the IRS does conduct a proceeding with in a proceeding with respect to the regulations provide that this 60-day respect to the partnership to adjust an partnership under the centralized period may be extended with approval identified, inconsistently reported item, partnership audit regime. See section by the IRS. This comment was not the IRS may include within that 6223(b). To clarify the application of adopted. proceeding the partner who provided this rule in the case of a partnership- The IRS may assess and collect any notice of inconsistent treatment. The level proceeding to adjust an identified, underpayment of tax resulting from an comment was concerned that the inconsistently reported item, proposed adjustment to conform an inconsistent regulations provided partners who § 301.6222–1(c)(4) was revised to position in the same manner as if the identified inconsistent treatment an provide that where the IRS conducts a underpayment were on account of a automatic right to contest the IRS’s proceeding with respect to the mathematical or clerical error appearing adjustment through deficiency partnership, and there is no proceeding on the partner’s return, except that the proceedings, which would result in with respect to the partner regarding an procedures under section 6213(b)(2) for more partner-level proceedings and identified, inconsistently reported requesting abatement of an assessment which would be contrary to the intent partnership-related item, the partner is do not apply. The 60-day period under of the centralized system. According to bound to actions by the partnership and § 301.6222–1(d)(2) is designed to allow the comment, the recommended rule any final decision in the partnership a partner to demonstrate consistency would allow the IRS to avoid proceeding. with the information furnished to the conducting separate partnership and Another comment suggested that the partner by the partnership and partner proceedings by allowing the IRS regulations clarify what happens when corresponds to the 60-day period the

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partner would have had to request whether the partnership-partner has One comment stated that the statute’s abatement if section 6213(b)(2) were made an election under section 6221(b) use of the highest marginal tax rate to applicable. Notably, section 6213(b)(2) to elect out of the provisions of the calculate the imputed underpayment is does not provide for any extensions of centralized partnership audit regime. unfair to taxpayers who may not be time. Accordingly, the 60-day period The final regulations clarify that the taxed at the highest marginal rate, under § 301.6222–1(d)(2) affords the rules of § 301.6222–1 apply to all particularly with respect to adjustments partner an opportunity to contest the partners including partnership-partners for qualified dividends or capital gains, IRS’s conforming adjustment the partner that have elected out of the centralized where a partner is subject to the would not have otherwise had. partnership audit regime and revise the alternative minimum tax, or where a Additionally, the 60-day period is a language referring to such partners to partner is a tax-exempt entity. To the reasonable amount of time for the better conform to similar references in extent the comment was suggesting that partner to demonstrate consistency with other regulation sections. the regulations use a rate different than the information it has received from the Proposed § 301.6222–1(b)(3) provided the rate prescribed in the statute to partnership. At the time the partner is a rule regarding the effect of compute an imputed underpayment, the notified by the IRS of the inconsistent inconsistent treatment where the comment was not adopted. Section treatment, the partner should be in partner is itself a partnership and also 6225(b)(1)(B)’s mandate to ‘‘apply the possession of any statements, schedules, provided a cross-reference to the rules highest rate of tax in effect for the or forms furnished to the partner by the under section 6232(d)(1)(B) and reviewed year under section 1 or 11’’ is partnership. If the partner were § 301.6232–1(d). To better conform the unambiguous, and there is no exception permitted to request abatement, the two sets of rules and to reduce any from application of the highest rate for partner would likewise only have 60 potential confusion between the any particular partnership or for any days. Furthermore, if the partnership is provisions, the final regulations specific type of partner, such as an made aware by the partner that an item eliminate the rule under § 301.6222– exception that takes into account unique was treated incorrectly on the 1(b)(3) in favor of providing only a circumstances of specific partners. partnership return or the schedules cross-reference to the rules under Because application of the highest rate furnished by the partnership, the section 6232(d)(1)(B) and § 301.6232– is established by statute, the regulations partnership has the ability to file an 1(d). also apply the highest rate of tax to AAR with respect to the partnership- determine an imputed underpayment related item. 3. Determination of an Imputed under section 6225(b). Another comment suggested guidance Underpayment, Modification of an A partnership and its partners may be is needed as to how the election under Imputed Underpayment, and able to reduce the rate used in proposed § 301.6222–1(d)(2) is made. Adjustments That Do Not Result in an computing an imputed underpayment Proposed § 301.6222–1(d)(2)(i) provided Imputed Underpayment by requesting modification under that the election must be filed in writing section 6225(c). For example, the with the IRS office set forth in the notice Twenty comments were received partnership may request modification that notified the partner of the concerning section 6225 and the rules under § 301.6225–2(d)(3) with respect to inconsistency. Proposed § 301.6222– regarding imputed underpayments. This partnership adjustments that are 1(d)(2)(ii) provided the election must be section 3 addresses the comments allocable to a tax-exempt entity or clearly identified as an election under concerning the determination of an modification under § 301.6225–2(d)(4) section 6222(c)(2)(B); signed by the imputed underpayment under proposed with respect to adjustments to capital partner making the election; § 301.6225–1; modification of an gains or qualified dividends that are accompanied by a copy of the incorrect imputed underpayment under proposed attributable to an individual. The statement and IRS notice that notified § 301.6225–2; and the rules regarding partnership may also make a push out the partner of the inconsistency; and how adjustments that do not result in an election under section 6226, allowing include any other information required imputed underpayment are taken into partners to take into account the in forms, instructions, or other guidance account in accordance with proposed adjustments and pay tax using their prescribed by the IRS. § 301.6225–3. As discussed in the respective marginal tax rates, including The comment did not suggest what Background, comments concerning the taking into account the effect of the further guidance should be provided in rules regarding basis and tax attributes alternative minimum tax. the regulations. Deferring further under proposed § 301.6225–4 will be Proposed § 301.6225–1(a)(1) provided guidance to forms, instructions, and addressed in future guidance. that each imputed underpayment other sub-regulatory guidance allows A. Determination of an Imputed determined under § 301.6225–1 is based the IRS the flexibility to update its Underpayment solely on partnership adjustments with procedures as appropriate and necessary respect to a single taxable year. One without the IRS having to amend the Section 6225(b)(1)(B) provides that comment recommended that the regulations. As discussed earlier in this the determination of any imputed regulations allow adjustments that move section of this preamble, this flexibility underpayment is made by ‘‘applying the income or expense from one year to preserves government resources and highest rate of tax in effect for the another to be netted for purposes of also expedites the guidance process for reviewed year under section 1 or 11.’’ computing the imputed underpayment taxpayers to be aware of changes in IRS Consistent with section 6225(b)(1)(B), amount. This comment was not procedures. Accordingly, proposed proposed § 301.6225–1 provided that an adopted. § 301.6222–1(d)(2) was not revised in imputed underpayment is determined The comment described an example response to this comment. by multiplying the total netted in which the IRS determines that the partnership adjustment by the highest partnership should have reported G. Effect of Inconsistent Treatment rate of federal income tax in effect for income in year 1 that was originally When Partner is a Partnership the reviewed year under section 1 or 11 reported in year 2. The increase in Proposed § 301.6222–1(a)(2) provided and increasing or decreasing that income for year 1 results in an imputed that the rules of § 301.6222–1 apply to product by certain adjustments to underpayment. The decrease in income a partnership-partner regardless of credits and creditable expenditures. in year 2 is an adjustment that does not

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result in an imputed underpayment when determining the imputed require determining the identity of the pursuant to § 301.6225–1(f)(1)(i), and underpayment. partners affected by the adjustment. the partnership and its partners take Furthermore, a timing adjustment, While in some cases a lack of partner into account the decrease in income in such as the one described in the turnover may make that determination the adjustment year pursuant to comment’s example, often has effects less burdensome, in other cases where § 301.6225–3. One partner in the that must be reflected in each taxable there is a high turnover of partners or comment’s example reports income year’s return. Allowing such where special allocations are involved, from other sources in the adjustment adjustments to net against each other the determination becomes more year; the other partner does not report could inappropriately negate those difficult. Establishing a rule that allows income from other sources. effects. For instance, an adjustment that netting of adjustments across tax years Section 6225(b) sets forth the rules for shifts a depreciation deduction from one as a general matter fails to take into determining an imputed underpayment. year to another year might have the account the differing make-up of The statutory structure of section effect of changing a taxpayer’s status partnerships and their partners. For 6225(b) is premised on the concept that from being in a loss posture to being in instance, assume a case where there is an imputed underpayment is a gain posture for the year from which a high turnover of partners, adjustments determined with respect to a reviewed the loss is being shifted. Although in are determined across multiple year and that adjustments with respect some cases a gain in one year might reviewed years, and the rules allow to the reviewed year result in such effectively offset a loss in another year, netting of those adjustments to form a imputed underpayment or are such a result cannot be known without single imputed underpayment. If the adjustments that do not result in an an analysis of each of the partners’ partnership requested to modify that imputed underpayment. Section specific circumstances. As discussed imputed underpayment, it would be 6225(a). Section 6225(b)(1)(A) expressly later in section 3.A.i. of this preamble, unclear which partners would be provides that ‘‘any imputed requiring the IRS to review each required to participate in modification underpayment with respect to any partner’s specific circumstance in order and if the partnership made a push out reviewed year shall be determined by to determine the imputed election with respect to the imputed the Secretary by appropriately netting underpayment is the type of inquiry that underpayment, it would be unclear all adjustments with respect to such the centralized partnership audit regime which partners would be furnished reviewed year . . . .’’ (emphasis added). was designed to avoid. statements under § 301.6226–2. The statute does not reference A rule that allows for automatic Lastly, as a practical matter, the IRS adjustments with respect to any year netting of adjustments across tax years may not examine each relevant other than the reviewed year. also ignores the limitation in section partnership taxable year. If an Accordingly, a rule that allows for the 6225(b)(4) and would create significant adjustment results in moving a netting of adjustments across tax years administrative burdens for the IRS. partnership-related item from one is not consistent with the statutory Section 6225(b)(4) provides that if any taxable year to another, the IRS may language of section 6225(b)(1)(A). adjustment would result in a decrease in examine the other taxable year, but the In addition, netting across multiple the amount of the imputed IRS is not required to. Providing a rule tax years would not constitute underpayment and could be subject to requiring the IRS to take into account ‘‘appropriately netting’’ within the any additional limitation under the other taxable years when netting meaning of section 6225(b)(1)(A). A Code if taken into account by any adjustments would effectively require fundamental federal income tax person, such adjustment should not be the IRS to examine all of the principle is that each taxable year taken into account in the netting process partnership’s open taxable years, which stands alone. Commissioner v. Sunnen, described in section 6225(b)(1)(A). This would result in a significant 333 U.S. 591 (1948) (‘‘Income taxes are provision codifies the presumption that, administrative burden to the IRS and levied on an annual basis. Each year is except as otherwise provided, taxpayer the partnership subject to the the origin of a new liability and of a favorable adjustments subject to any administrative proceeding. If netting separate cause of action.’’). A rule that possible limitation under the Code if across tax years was allowed, but the provides for netting across tax years taken into account by any person are IRS did not examine all relevant years, ignores this fundamental principle. For disregarded when determining an different partnerships would receive netting to be appropriate, it must take imputed underpayment. The statute different, and potentially distorted, into account general principles of does not require the IRS to determine netting results. For instance, a federal income tax laws as well as the whether taxpayer favorable adjustments partnership under examination for provisions of the Code. Allowing an are in fact subject to such limitations. A multiple taxable years could potentially adjustment from one taxable year to rule allowing for netting across tax years benefit from netting across those taxable offset or net with an adjustment from would, however, require the IRS to years, but a partnership under another taxable year when determining make such determinations. This would examination for only one taxable year an imputed underpayment contravenes have the effect of inappropriately would not receive the same benefit. The both the general tax principle that each expanding the number of tax years and determination of an imputed year stands alone and is not supported partnership adjustments potentially at underpayment amount for any one year by the plain language of section 6225. issue in the partnership-level should not be dependent on the number These principles are particularly proceeding. Not only would that result of partnership taxable years the IRS significant in the context of partnerships undermine the limitation under section examines. given that partners’ interests and the 6225(b)(4), it would also unnecessarily Accordingly, a rule that allows identity of partners can vary from year complicate the partnership examination, adjustments to net across taxable years to year. Because adjustments relating to creating potential burdens for both the is inconsistent with the statutory multiple years may affect items that are IRS and the partnership. language of section 6225(b)(1)(A), allocable to different partners or in A rule allowing adjustments to offset contravenes general tax principles, different amounts, it would be across years would also create creates administrative burdens for the particularly inappropriate to offset those administrative burdens for both the IRS IRS, and inappropriately affects the types of adjustments against each other and for taxpayers because it would timing and netting of certain

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partnership-related items. Therefore, the partnership examination. Because the partners. The regulations require that final regulations under § 301.6225– imputed underpayment determined at adjustments be placed into groupings 1(a)(1) maintain the requirement that an this phase in the examination is not and subgroupings based on how the imputed underpayment be based solely required to reflect the facts and adjusted items are treated pursuant to on partnership adjustments with respect circumstances of the ultimate partners, the Code, the regulations, forms, to a single taxable year. modifications may be necessary to more instructions, and other guidance and do closely reflect the proper tax treatment. not generally permit the netting of i. Grouping, Subgrouping, and Netting After the preliminary determination of Partnership Adjustments adjustments that might otherwise be of the imputed underpayment amount subject to limitations or restrictions Several comments provided under § 301.6225–1, the burden is under the tax laws. Accordingly, the recommendations regarding the shifted to the partnership to utilize the grouping and netting rules are designed grouping, subgrouping, and netting modification procedures under with regard to generally applicable rules under proposed § 301.6225–1(c), § 301.6225–2 if the partnership so provisions of the Code. For further (d), and (e). In order to determine an chooses. Modification is designed to discussion of the comment’s concerns imputed underpayment, each allow the partnership and its partners to regarding the grouping and netting rules partnership adjustment determined by arrive at an imputed underpayment and the interaction with generally the IRS is first placed into one of four amount that is closer to the correct applicable tax laws, see section 3.A.ii. of groupings pursuant to § 301.6225–1(c) amount of tax while maintaining the this preamble. according to the type of partnership- assessment and collection efficiencies of One comment suggested that the related item being adjusted: The a centralized audit process. See Joint regulations should allow partners to reallocation grouping, the credit Comm. on Taxation, JCS–1–16, General supply information to the partnership grouping, the creditable expenditure Explanations of Tax Legislation Enacted and require that the partnership and the grouping, or the residual grouping. in 2015, 65–66 (2016) (JCS–1–16). As an IRS apply this information in Adjustments are then subgrouped, if alternative to modification and paying calculating the imputed underpayment. appropriate, and netted to produce the an imputed underpayment, the The comment also suggested there be a total netted partnership adjustment. partnership can elect under section procedure for partners who are passive Proposed § 301.6225–1(b)(2), (d) and (e). 6226 to push out the adjustments to its investors with respect to the partnership One comment stated that the grouping partners. Both modification and the and netting procedures are broad, vague, to have an opportunity to claim passive push out election provide the losses for net partnership adjustments and generally err on the side of opportunity to establish that the correct on audits that increase income and maximizing tax revenue resulting from amount of tax is collected from the cause the partnership to pay tax on their an audit without regard to generally partnership and its partners. behalf. applicable provisions of the Code. The Accordingly, the final regulations under design of section 6225(a) and (b) and the § 301.6225–1 were not revised in As discussed earlier in this section of grouping and netting rules under response to the comment’s concern this preamble, the tax attributes of the § 301.6225–1 is to create an imputed about maximizing revenue. partnership’s partners generally do not underpayment amount that is based on With respect to the comment’s factor into the preliminary the highest rate of tax and that concerns that the grouping and netting determination of the imputed disregards any taxpayer favorable procedures are broad and vague and underpayment. Rather, the imputed adjustments which would otherwise disregard generally applicable tax laws, underpayment determined under reduce the imputed underpayment. to the extent those concerns related to § 301.6225–1 is computed without Given this formula, an imputed the scope of the centralized partnership regard to the partners’ tax underpayment determined under audit regime and what determinations circumstances, for example whether a § 301.6225–1 will likely reflect an and adjustments are made at the partner would be able to offset amount that is larger than the partnership level, see section 1 of this additional partnership income with cumulative amount of tax the partners preamble. To the extent the comment’s additional deductions or whether a would have paid if the partners took the concerns related to the fact that the partner’s tax attributes would reduce the partnership adjustments into account regulations do not address every amount of tax due as a result of the separately. possible grouping and netting scenario, adjustments. See section 6225(b)(1)(B), This formula is a feature of section the regulations do so intentionally. The (2) and (4). Modification as described 6225(a) and (b). The statute expressly Treasury Department and the IRS have under section 6225(c) and § 301.6225–2 disregards certain adjustments that may determined it is not reasonable to is the more appropriate stage of the be subject to limitations and that would identify within the regulations all examination for the IRS to take into otherwise reduce the imputed possible permutations of adjustments account specific partner tax attributes. underpayment and mandates the and partnership facts and circumstances Requiring the IRS to review the tax application of the highest applicable tax that might affect how an imputed attributes of each partner within the rate. Section 6225(b)(1)(B), (2) and (4). underpayment is calculated. context of the first phase of the The proposed regulations followed Accordingly, the regulations provide partnership examination would these statutory mandates. By removing general rules that apply to various undermine the centralized nature of the the obligation on the IRS to consider scenarios that could arise in the examination process. The comment’s’ partners’ facts and circumstances, such examination process. The general nature recommendation to allow partners to as whether adjustments that would of the grouping, subgrouping, and present information during the otherwise reduce the imputed netting rules also allow for the partnership audit and require the IRS to underpayment might be allowed at the regulations to adapt to future changes to incorporate that information into the partner level or whether adjustments the Code. imputed underpayment calculation might be taken into account by partners Notwithstanding the rules’ flexible would require the IRS to review and at a rate lower than the highest rate, nature, they are rooted in provisions of evaluate partner tax attributes in a way section 6225(b) shifts the burden from the Code and regulations that are that would significantly impede upon the IRS during this phase of a generally applicable to partnerships and the exam and create numerous

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administrative burdens for the required to take into account the decrease in ordinary income to be government. adjustments and any effects on the netted against the increase in capital Notwithstanding these challenges, partners’ tax attributes. At that stage, the gain, the partners may have overpaid tax proposed § 301.6225–1(c)(1) and (d)(1) partners could use passive losses to the with respect to the ordinary income. provided that the IRS may, in its extent permitted by the rules under The comment suggested that the discretion, place adjustments in § 301.6226–3 (regarding how partners Treasury Department and the IRS groupings and subgroupings in a take into account pushed out should ensure that the government does manner different from that described in adjustments). not seek an increase in tax collections the proposed regulations to Although the IRS is permitted to solely because the partnership bears the appropriately reflect the facts and consider partner tax attributes during burden for the tax. This comment was circumstances of each examination. the first phase of the partnership exam, not adopted because its conclusions are This rule is intended to allow the the statute and the regulations provide based on assumptions that may not partnership to provide information to clear guidance on the modification apply in all situations and section the IRS to demonstrate that certain process and specifically how a 6225(b)(1)(A) requires that adjustments partner tax attributes should be taken partnership may request that partners’ are ‘‘appropriately netted’’ taking into into account when grouping and tax attributes be taken into account to consideration the further limitation of subgrouping to achieve a more reduce the imputed underpayment. section 6225(b)(4) which does not appropriate netting of the adjustments. Limiting the requirement that the IRS permit the netting of adjustments that The regulations give the IRS the consider such information to the would reduce the imputed discretion to decide whether or not to modification stage is efficient for both underpayment with other adjustments. use this information in the initial the IRS and the partnership because it The comment’s suggestion presents the examination phase, that is, prior to ensures that the first phase of the exam same issues described earlier in this modification. This discretion is is focused on the substance of what section of the preamble regarding the necessary because the partnership and adjustments must be made at the introduction of partner tax information the IRS may not agree as to whether the partnership level, rather than on in the partnership level proceeding. groupings and subgroupings requested specific partner attributes. The comment’s conclusions that the by the partnership are appropriate. For these reasons, the comment partners may have overpaid tax with Requiring the IRS and the partnership to suggesting a rule that permits partners, respect to the decreased capital gain or resolve such disagreements within the as a matter of right, to present the decreased ordinary income may be context of the first phase of the information regarding their tax true in some cases. Without a review of partnership proceeding would take time attributes during the partnership audit the partners’ accounts or some and resources away from the audit and is not adopted. However, a partnership affirmation from the partners that they thereby recreate the same problems may request that the IRS take into did pay tax, the IRS cannot be certain associated with introducing partner tax account facts and circumstances relating this is true in all cases or any one attributes into the partnership level to its partners pursuant to the rules particular case. For example, a partner exam. If the partnership and the IRS do under § 301.6225–1(d)(1) and (e)(1), may have been in an overall loss not agree on the groupings and which may allow for more appropriate position for the taxable year, may not subgroupings recommended by the grouping and subgroupings of have originally reported the decreased partnership during the exam, the adjustments. The comment’s item, or may not have filed a return. As partnership is not without recourse. The recommendation that the IRS be discussed earlier in this section of this partnership may request during required to apply such information preamble, the initial phase of the modification that the IRS include one or during the netting process was not examination is not designed for the IRS more partnership adjustments in a adopted. The partnership may, however, to consider the specific circumstances of particular grouping or subgrouping or request during modification to reduce any partners. A rule requiring the IRS to request that certain partnership the amount of the imputed consider specific partner circumstances adjustments be treated as if no underpayment based on the partners’ would require the IRS to review each limitations or restrictions apply with the specific tax attributes. partner’s account and prior returns to result those adjustments may be Another comment stated the proposed ensure that the partner previously took subgrouped with other adjustments. See regulations create a divergence between an item into account and paid tax on § 301.6225–2(d)(6). the imputed underpayment amount and that item. Such a rule would create Accordingly, modification is generally the cumulative amount that the significant burden on the IRS during the the appropriate point in the reviewed year partners would have to initial exam phase and undermine a administrative phase at which partner pay if the adjustments were allocated to core aspect of the centralized tax attributes may be raised by the them. The comment described two partnership audit regime’s shifting of partnership and considered by the IRS. situations to illustrate this concern. In the burden from the IRS to the For example, the partnership and its the first situation, one adjustment partnership and its partners. As partners can utilize the amended return increases ordinary income, and another discussed earlier in this section of this procedure or the alternative procedure adjustment decreases capital gain. The preamble, a partnership may request to filing amended returns, which require comment concludes that because the that tax attributes are accounted for by partners to take the adjustments into proposed regulations do not allow the using the modification procedures or account in light of their individual tax decrease in capital gain to be netted the partnership may make the election attributes. Those procedures would against the increase in ordinary income, under section 6226. potentially allow partners to offset the partners may have overpaid tax with The comment also appears to passive income with any passive losses, respect to the capital gain. In the second conclude that if all partnership consistent with the procedure situation, one adjustment increases adjustments were netted, the imputed recommended by the comment. In the capital gain, and another adjustment underpayment would result in some alternative, the partnership may elect to decreases ordinary income. The number closer to the amount the push out the adjustments under section comment concludes that because the reviewed year partners would have to 6226, and the partners would be proposed regulations do not allow the pay if the adjustments were allocated to

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them. While this may be true in some no such limitations exist either under 1(d)(1) and (e)(1) as revised in the cases, it would not occur in all § 301.6225–1(d)(1) or (e)(1) or in the August 2018 NPRM. A partnership that situations. For instance, assume the modification phase. The partnership can wishes to request that the IRS take into partner in the first situation described also make the election under section account its partner’s tax circumstances, by the comment had not reported and 6226, and the partners will account for including that certain partners are paid tax with respect to the capital gain such limitations when taking into otherwise entitled to a capital loss that was then decreased on account the adjustments. deduction under section 1211(b), may examination. If the regulations The comment suggested specific utilize the discretionary grouping and permitted the decreased capital gain to approaches to ameliorate the concerns it subgrouping rules under § 301.6225– be fully netted against the increased raised. First, it suggested a rule that 1(d)(1) and (e)(1) or make a modification ordinary income, the result may lead to would allow an ordinary income request under § 301.6225–2(d)(6). little or no imputed underpayment, grouping to be reduced by a capital loss With respect to the recommendation even though the partner had not paid grouping to the extent of $3,000 per that the regulations apply the applicable tax on the capital gain that was reduced. direct or indirect individual partner. rate for net negative adjustments to the In that case, no tax was paid by the Second, it suggested a rule that would relevant negative subgrouping and allow partner on the capital gain (as originally apply the applicable rate for net this amount to reduce the imputed allocated to the partner) and no tax was negative adjustments to the relevant underpayment amount, this paid by the partnership with respect to subgrouping and allow this amount to recommendation was also not adopted; the increased ordinary income, even reduce the imputed underpayment however, the final regulations allow for though the partnership had additional amount. Neither of these specific the result requested by the comment ordinary income that should have been recommendations was adopted. depending on the facts and allocation to the partner. While the The Code permits corporate taxpayers circumstances. The comment suggests comment stated that the netting process to deduct capital losses to the extent of that the rate used in determining an under proposed § 301.6225–1 capital gains. Section 1211(a). In the imputed underpayment should be eliminated situations that would benefit case of taxpayers other than applied to negative adjustments that the taxpayer, the comment did not corporations, the Code allows a would otherwise be adjustments that do acknowledge that the statutory structure deduction for any capital loss exceeding not result in an imputed underpayment of section 6225 mandates this result. capital gain up to $3,000 ($1,500 in the and allow those negative adjustments to The comment also does not case of a married individual filing net with other positive adjustments in acknowledge that the netting process as separately). Section 1211(b). A rule an effort to calculate an amount that enacted in the statute and implemented allowing an offset of $3,000 against an would more closely reflect what the increase in ordinary income in the in the regulations also protects the IRS, partners would have paid if they had situations described by the comment for instance in cases where the partner properly reported the adjusted items. would require the IRS to first determine did not pay tax on an adjusted item. Section 6225(b)(1) provides that the that the partners in the partnership are During the initial phase of determining imputed underpayment is determined taxpayers other than corporations such the imputed underpayment, the rules by appropriately netting all partnership that the rules under section 1211(b) should not require the IRS to take steps adjustments and applying the highest apply. While this may be a relatively to ameliorate a potential discrepancy in rate of tax under section 1 or 11. Section simple determination in some cases, 6225(b)(3) requires that the partnership payment amounts based on facts requiring the IRS to engage in making adjustments are first separately applicable in one situation if the rule the determination contravenes the determined and netted as appropriate would result in distortions for taxpayers principle that partners’ tax attributes, within each category of items that are with different facts. including partner identity, are generally required to be taken into account As discussed earlier in this section of not accounted for in the initial imputed separately under section 702(a) or other this preamble, ‘‘appropriately netting’’ underpayment calculation. provision of the Code. When within the meaning of section To the extent the rule recommended ‘‘appropriately netting’’ under section 6225(b)(1)(A) means, as a general by the comment is based on the premise 6225(b)(1)(A), section 6225(b)(4) matter, that when netting partnership that each partner would be entitled to a requires that negative adjustments that adjustments for purposes of determining $3,000 capital loss, that premise is could be subject to any limitation or an imputed underpayment, all faulty. One, such a rule would require restriction if taken into account by any limitations under the Code should be the IRS to know whether there are no person be disregarded unless provided considered, including limitations that other capital gains (related or unrelated otherwise by regulation. The regulations would otherwise prevent the to the partnership) against which the incorporate this rule in § 301.6225– partnership from netting certain items. non-corporate partners would first be 1(d)(3). The regulations also provide the Section 6225(b)(4)’s rule regarding required to offset the additional capital ability, however, to take facts and taxpayer favorable adjustments subject loss. Two, the rule would require the circumstances into account to allow to additional limitations under the Code IRS to consider whether the partner was negative or downward adjustments, if taken into account by any person not an individual subject to the lower where appropriate, to be subgrouped supports this interpretation. Because deduction amount of $1,500 allowed by and thus netted with other adjustments. certain items could be subject to section 1211(b). This process would See § 301.6225–1(d)(1). For these limitations in the hands of certain become more burdensome as the reasons, the final regulations maintain partners, the statute requires that number of partners and tiers increased. the process for subgrouping and netting limitations be accounted for by Accordingly, this comment was not as provided for in the proposed assuming they exist for purposes of adopted. To extent that this comment regulations. determining the imputed underpayment recommended a rule that allowed more during the initial stage of the flexibility for the IRS to group ii. Subgrouping Principles examination. The partnership may adjustments according to the facts and Before being revised in the August ameliorate any discrepancies caused by circumstances of the partners, that rule 2018 NPRM, former proposed that assumption by demonstrating that is reflected in proposed § 301.6225– § 301.6225–1(d) had provided that after

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grouping the adjustments, partnership do not net against each other for Generally, under § 301.6225–1(d), adjustments are further subgrouped purposes of determining an imputed reallocation adjustments must be placed based on preferences, limitations, underpayment. into their own subgroupings, but there restrictions, and conventions, such as For example, under § 301.6225–1(c) a is an exception for when multiple source, character, holding period, or positive adjustment to intangible reallocation adjustments apply to a restrictions under the Code applicable drilling costs and a negative adjustment single partner or group of partners. to such items. One comment stated that to gain or loss from a sale of property Proposed § 301.6225–1(d)(3)(ii) the proposed grouping and subgrouping described in section 1231 are both provided that if a particular partner or rules under former proposed placed in the residual grouping. group of partners has two or more § 301.6225–1(d) unfairly removed many Pursuant to § 301.6225–1(d)(3)(i), each reallocation adjustments allocable to relevant distinctions between different adjustment is then placed in a separate such partner or group, such adjustments types of items and adjustments and subgrouping to reflect that one may be subgrouped in accordance with netted items that do not properly net adjustment is a negative adjustment and § 301.6225–1(d)(3)(i) and netted in against each other at the entity level, that the items being adjusted are accordance with § 301.6225–1(e). including intangible drilling costs, required to be separately stated Proposed § 301.6225–1(d)(3)(iv) section 1231 gains and losses, and pursuant to section 702(a). See section provided a similar rule with respect to whether a particular partner is 702(a)(3), § 1.702–1(a)(8)(i). Under recharacterization adjustments. considered active or passive in his or § 301.6225–1(e)(1), adjustments from In January 2017, a prior version of the her relationship to the partnership. separate subgroupings cannot be offset June 2017 NPRM was made publicly Another comment recommended that against one another. Accordingly, just as available but was not published in the the final regulations should also include a positive amount of intangible drilling Federal Register. The unpublished a clear statement that the netting costs would not be netted with a section version of the June 2017 NPRM process will be applied in accordance 1231 loss under section 702(a), a contained an example under former with generally applicable tax law. Both positive adjustment to intangible proposed § 301.6225–1(f) (former comments are addressed by the drilling costs would not net against a Example 3) which was not contained in amendments made by the TTCA to negative adjustment to 1231 gain or loss the June 2017 NPRM that was published section 6225(b). for purposes of determining an imputed in the Federal Register. One comment Section 202(a) of the TTCA added underpayment. recommended that former Example 3 be section 6225(b)(3) to provide that added back to the regulations. This Some items that are not separately partnership adjustments shall first be comment was not adopted. The stated pursuant to section 702(a) may separately determined (and netted as Treasury Department and the IRS nevertheless be subject to other appropriate) within each category of considered reviving former Example 3, limitations under the Code or may not items that are required to be taken into but because of the changes to section otherwise be allowed to net against account separately under section 702(a) 6225 in the TTCA, former Example 3 ordinary income. To account for those or other provision of the Code. Section did not comport with the statute or the 6225(b)(4) provides if any adjustment types of limitations, proposed proposed regulations. Instead of would (but for section 6225(b)(4)) result § 301.6225–1(d)(3)(i) further provided reviving former Example 3, a new in a decrease in the amount of the that if any adjustment could be subject example was added, Example 12, to imputed underpayment, and could be to any preference, limitation, or clarify subgrouping principles in the subject to any additional limitation restriction under the Code (or not case of facts similar to, but slightly under the provisions of the Code (or not allowed, in whole or in part, against different from, the facts in former allowed, in whole or in part, against ordinary income) if taken into account Example 3. ordinary income) if such adjustment by any person, the adjustment is placed One comment recommended that the were taken into account by any person, in its own separate subgrouping. For regulations clarify whether and under such adjustment shall not be taken into example, an increase in loss attributable what conditions positive and negative account when appropriately netting to a trade or business activity of the adjustments resulting from different partnership adjustments under section partnership may not be deductible in reallocation or recharacterization 6225(b)(1)(A) except to the extent the hands of a particular partner adjustments are permissibly placed in otherwise provided by the Secretary. because that partner did not materially the same subgrouping. The comment Former proposed § 301.6225–1(d) was participate in the partnership activity. stated that the language of both revised in the August 2018 NPRM to See section 469. Because the loss may proposed § 301.6225–1(d)(3)(ii) and (iv) account for the additions of sections be limited in the hands of a particular seemed to allow the inclusion in the 6225(b)(3) and (4). Proposed partner, the increase in loss is placed in same subgrouping of unrelated positive § 301.6225–1(d)(3)(i) provided that its own separate subgrouping to prevent and negative adjustments provided that adjustments are subgrouped, when any inappropriate netting against an all of the adjustments apply to a appropriate, according to how the adjustment increasing income of the particular partner or group of partners. adjustment would be required to be partnership. The comment suggested that the final taken into account separately under Accordingly, both the comment regulations include examples clarifying section 702(a) or any other provision of expressing concerns about the netting of the proper grouping and netting of the Code or regulations applicable to the items that do not properly net against adjustments pursuant to § 301.6225– adjusted partnership-related item. By each other at the entity level and the 1(d)(3). The addition of Example 12 separating adjustments into comment suggesting the regulations under § 301.6225–1(h) provides the subgroupings according to how and apply general principles of tax law were example suggested by the comment. As whether the adjustments would be addressed by the changes to section discussed earlier in this section of this separately stated pursuant to section 6225 in the TTCA and the subgrouping preamble, Example 12 clarifies 702(a), the rules under § 301.6225– rules under § 301.6225–1(d)(3)(i) as operation of the rule under § 301.6225– 1(d)(3)(i) ensure that items that do not revised in the August 2018 NPRM. As 1(d)(3)(ii) allowing for adjustments to be properly net against each other at the a result, the final regulations were not subgrouped together when the partnership level under section 702(a) revised in response to these comments. adjustments are allocable to a particular

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partner or group of partners. Although negative adjustment is taken into the adjustment year with the adjustment Example 12 illustrates these concepts in account by the partnership’s reviewed year partners bearing the liability for the the context of reallocation adjustments, year partners, rather than in the imputed underpayment. This comment the example’s analysis is equally adjustment year by its adjustment year was not adopted because it is contrary applicable to recharacterization partners. to the plain language of the statute. adjustments. The result demonstrated To the extent the comment was Section 6225(a)(1) refers to by Example 12 under § 301.6225–1(h) of expressing more general concerns about adjustments to partnership-related items the rule under § 301.6225–1(d)(3)(ii) for double taxation, proposed § 301.6225– ‘‘with respect to any reviewed year.’’ reallocation adjustment subgroupings 1(b)(4) was added in the August 2018 Section 6225(b)(1) provides that any would not be the result if the negative NPRM to provide that if the effect of a imputed underpayment ‘‘with respect to adjustments in that example were partnership adjustment under chapter 1 any reviewed year’’ shall be determined subject to limitations described in of the Code is reflected in another by appropriately netting all partnership section 6225(b)(4) and § 301.6225– adjustment taken into account in the adjustments ‘‘with respect to such 1(d)(3)(i). imputed underpayment determination, reviewed year.’’ In addition, section the IRS may treat an adjustment as zero 6225(d)(2) defines adjustment year to iii. Negative Adjustments for the purposes of calculating the mean, in the case of an examination, the Under § 301.6225–1(e), adjustments imputed underpayment. This rule is year in which an FPA is mailed under from each subgrouping (or grouping if designed to ensure that when section 6231 or in the case of there is no subgrouping within that calculating an imputed underpayment, adjustment pursuant to a decision in a grouping) are netted to produce either a an adjustment is not counted twice if proceeding under section 6234, the year net positive adjustment or a net negative the tax effect of that adjustment is in which the decision is final. adjustment with respect to each reflected by another adjustment made Accordingly, at the time of the grouping or subgrouping. When by the IRS. A partnership may request modification phase of the examination, determining an imputed underpayment, that the IRS utilize this rule to treat an the adjustment year will not yet be generally only net positive adjustments adjustment as zero if there is the determined. are taken into account, and net negative partnership is concerned about double If the comment’s suggestion were adjustments are generally treated as taxation. Accordingly, to the extent the adopted and adjustments were treated adjustments that do not result in an comment was raising concerns about as having arisen in the adjustment year, imputed underpayment. Adjustments to double taxation, no changes were made it is unclear whether the reviewed year credits and creditable expenditures are to the regulations in response to the partners’ or the adjustment year treated separately. See section 3.A.vi. of comment. partners’ tax attributes would be this preamble. The final regulations under relevant in the modification One comment suggested that the § 301.6225–1(b)(4) do, however, clarify determination. The modification period requirement that only net positive that the IRS has the discretion to treat will in every case come before the adjustments are taken into account in adjustments as zero for purposes of issuance of the FPA. As a result, the determining an imputed underpayment determining the imputed underpayment adjustment year will not yet have been will frequently result in double taxation if the effect of the adjustment under the determined, and therefore the of the same income items. The comment Code is reflected in another adjustment. adjustment year partners will not yet be cited to Example 4 under proposed The language requiring that the known. In addition, section 6225(c)(2) § 301.6225–1(h) (Example 3 in former adjustment must have previously been provides the ability for partners to file proposed § 301.6225–1(f)) to taken into account under § 301.6225–1 amended returns in modification. The demonstrate this point. In Example 4, was removed. This change provides the statute’s use of the phrase ‘‘amended the IRS determines that $125 of long- IRS the discretion to treat a partnership return’’ implies that a prior return must term capital gain should have been adjustment as zero in more situations. have been filed. A prior return could not reported as $125 of ordinary income, For instance, the effect of an adjustment have been filed for the adjustment year resulting in a $125 increase in ordinary may be reflected in an adjustment to an at this point in the examination because income and a corresponding $125 item treated inconsistently under the adjustment year would not yet be decrease in long-term capital gain (a section 6222(c). The final regulations determined. The partners from the $125 increase in long-term capital loss). under § 301.6225–1(b)(4) also remove reviewed year, therefore, must be the The increase in ordinary income results the language limiting the rule’s partners that utilize the modification in an imputed underpayment, and the application to chapter 1. Under the final procedures under section 6225(c)(2) increase in long-term capital loss is an regulations, the rule applies to the effect through the filing of amended returns adjustment that does not result in an of an adjustment under the Code in for the reviewed year. The reviewed imputed underpayment. general. This change also gives more year partners’ amended returns could To the extent the comment was flexibility to the IRS to treat partnership not take into account adjustment year suggesting that the example does not adjustments as zero for purposes of adjustments and apply them against specify what happens with respect to determining the imputed underpayment reviewed year returns. Accordingly, the the $125 increase in long-term capital amount. plain language of the statute indicates loss, the example was revised in the that adjustments for purposes of August 2018 NPRM to clarify that this iv. Other Suggestions Regarding determining an imputed underpayment loss is taken into account in accordance Grouping and Netting Adjustments are the adjustments with respect to a with § 301.6225–3. Under § 301.6225– One comment suggested that its reviewed year, not the adjustment year. 3(b), the partnership takes into account concerns with the grouping and netting Furthermore, section 6225(a)(1) the adjustment increasing long-term rules might be alleviated by allowing provides the partnership shall pay an capital loss in the adjustment year. the partnership to treat the partnership amount equal to such imputed Alternatively, the partnership may adjustment as if it arose during the underpayment in the adjustment year as request modification under section adjustment year rather than the provided in section 6232. In the case of 6225(c) or make a push out election reviewed year, which would adjustments that do not result in an under section 6226 to ensure that the synchronize the imposition of the tax in imputed underpayment, section

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6225(a)(2) provides that such Additionally, there is no authority nature of adjustments and the types of adjustments shall be taken into account within subchapter C of chapter 63 to the partners. in the adjustment year. Section allow the Treasury Department or the Moreover, it is not clear that the 6225(a)(2)’s explicit statement that IRS to require that reviewed year comment’s suggestion of accounting for adjustments not resulting in an imputed partners file amended returns, though the individual tax attributes of specific underpayment are taken into account in partners have the option to do so in partners and applying the Code’s rules the adjustment year, and the absence of modification. The partnership may also regarding those partners would yield an similar language in section 6225(a)(1) make the election under section 6226 appropriate netting of the adjustments makes clear that only those partnership which would result in adjustments for purposes of determining the imputed adjustments that do not result in an relating to the imputed underpayment underpayment at the partnership level. imputed underpayment are taken into for which the election was made being For example, the Code’s rules may account in the adjustment year. taken into account by the reviewed year apply differently to one individual Accordingly, a reasonable reading of partners. partner versus another individual the statutory language of section 6225(a) Another comment suggested treating partner. Treating all individual partners supports an interpretation that an audited partnership as an ‘‘entity’’ in the same manner would negate adjustments with respect to the rather than an ‘‘aggregate’’ solely for the operation of those rules. Accordingly, reviewed year should be treated as such purposes of calculating the imputed there is no reason to conclude that for purposes of determining an imputed underpayment based on majority treating adjustments according to how underpayment and not treated as ownership of the partnership (measured some but not all partners’ tax attributes adjustments arising in the adjustment by the partners’ interest in profits). would affect an adjustment is any more year. However, § 301.6225–3 does Specifically, the comment suggested reasonable than not taking into account provide that adjustments that do not that if more than 50% of the interest in any partners’ tax attributes. The statute result in an imputed underpayment are a partnership’s profit is held by one or provides a baseline assumption that taken into account in the adjustment more individuals, S corporations, or partners’ tax attributes are not taken into year, that is, when the imputed closely-held corporations, the account. The imputed underpayment underpayment is also required to be provisions of the Code that apply to that best reflects the facts and paid. To that extent, any adjustments individuals should apply for purposes circumstances of the partners should be that do not result in an imputed of determining the amount of any determined through application of the underpayment may mitigate the burden imputed underpayment. This comment permissive grouping and subgrouping of the imputed underpayment on was not adopted. rules under § 301.6225–1(d)(1), (e)(1) or adjustment year partners. As discussed earlier in this section of through modification. Accordingly, the Another comment stated that the time this preamble, section 6225 is final regulations do not adopt the shifting of the tax on partnership prescriptive as to how an imputed comment’s suggestion to base the examination adjustments from the underpayment is determined. The imputed underpayment determination reviewed year to the adjustment year is determination process expressly does on the identity of the majority of the inappropriate and that tax on not determine the imputed partnership. partnership examination adjustments underpayment as if the partnership Section 6225(b) only provides specific should arise in the reviewed year and were an individual or an entity. Instead, rules with respect to one type of not in the adjustment year. The the process for determining the imputed adjustment, that is, the rule that comment further states that the burden underpayment, including adjustments to distributive shares of of the payment in all cases should fall ‘‘appropriately netting all partnership partners not be netted under section directly on the reviewed year partners adjustments’’ under section 6225(b)(2). While it is true a and that the rules should require the 6225(b)(1)(A) in accordance with determination regarding an adjustment reviewed year partners to amend their § 301.6225–1 generally does not take described in section 6225(b)(2) is reviewed year tax returns to include into account partner tax attributes, usually made with some knowledge of their shares of the partnership including whether a partner is an the partners’ distributive shares, such a examination adjustments. The comment individual or a person subject to the determination does not account for the was not adopted because all of the Code provisions that apply to particular tax attributes of any specific changes recommended by the comment individuals. The IRS has the discretion partner. The IRS is not required to know would require amendments to the to take into account an attribute of a any other information about the specific statute. particular partner when grouping or partners at the initial examination phase Section 6225 provides that if the subgrouping the adjustments, but the to reallocate adjustments between adjustments result in an imputed IRS is not required to do so. § 301.6225– partners. Therefore, in order to underpayment, the partnership shall 1(d)(1), (e)(1). For instance, the IRS may effectuate the rule under section pay an amount equal to such imputed consider whether a certain ownership 6225(b)(2), there is no need to know underpayment in the adjustment year as percentage of the partnership was held whether a partner is an individual, a provided in section 6232. Accordingly, by individuals, S corporations, or corporation, a pass-thru partner, or the year partnerships must pay is, by closely-held corporations and group some other entity. Section 6225(b)’s lack statute, the adjustment year, and if the adjustments based on information of reference to any particular tax partnership pays the imputed submitted by the partnership. However, attributes of specific partners indicates underpayment without modification or a rule requiring the IRS to treat all that the determination of an imputed does not make an election under section partnership adjustments as if they were underpayment is not dependent on 6226, the statute is designed so that the being taken into account by an knowing any partner’s specific tax adjustment year partners bear the individual as the comment suggests is attributes. burden of that payment. See section inconsistent with the statutory The same comment suggested another 6241(4) and § 301.6241–4 (denying any requirement to net items appropriately. alternative in which the grouping and deduction to the partnership for any A rule that required the IRS to do so netting rules would account for current payment made by the partnership, would also potentially disadvantage year partner attributes for purposes of including the imputed underpayment). certain partnerships depending on the determining an imputed underpayment.

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The comment cited the amendment to The comment noted that the example an adjustment from another section 6225(a) by TTCA that provides does not specify what happens with subgrouping, the positive adjustment is if the partnership adjustments do not respect to the $125 increase in long-term not offset by the negative adjustment, result in an imputed underpayment, capital loss. As discussed earlier in and the result is a net positive such adjustments shall be taken into section 3.A.iii. of this preamble, the adjustment that forms the base for an account by the partnership in the example has been revised to clarify that imputed underpayment amount. adjustment year. This comment was not $125 increase in long-term capital loss Proposed § 301.6225–1(e)(2) and (3)(i). adopted. is taken into account in the adjustment These rules are adopted largely Section 6225 does not reference either year in accordance with § 301.6225–3. without change in the final regulations partner tax attributes or current year The comment also noted that it is in order to ensure that partners as a consideration in unknown whether the partnership will recharacterization adjustments are not determining the imputed be able to use the increased capital loss inappropriately netted when underpayment. As discussed earlier in in the future. To avoid this potential determining an imputed underpayment, this section of this preamble, the adverse consequence, the comment as required by section 6225(b)(1)(A). Treasury Department and the IRS have recommended that the regulations Allowing for the netting of the negative determined a reasonable interpretation permit a partnership to net adjustments adjustment against the positive of section 6225(b) supports a process in across different categories of gain or loss adjustment in the case of a which the determination of the imputed to reflect taxes that were previously recharacterization adjustment, as underpayment does not depend on paid. This comment was not adopted for suggested by the comment, could cause specific partners’ tax attributes. several reasons. the positive adjustment to be negated in Moreover, the comment’s reference to As an initial matter, implicit in the its entirety, which would defeat the ‘‘current year’’ is ambiguous; it could comment’s suggestion is that either the purpose of making the adjustment in the refer to any number of different time IRS or the partnership have knowledge first place. It would also result in the periods: the adjustment year, the actual of taxes previously paid by the partners. recharacterization adjustment not calendar year in which the imputed As discussed earlier in section 3.A.i. of properly being reflected in the imputed underpayment is being determined, the the preamble, facts and circumstances underpayment calculation. For instance, year the imputed underpayment is unique to specific partners are generally allowing the capital loss to fully offset proposed in a notice of proposed not taken into account in determining the ordinary income in Example 3 under partnership adjustment, the time during whether the adjustments result in an § 301.6225–1(h) would not adequately the modification period prior to imputed underpayment. The regulations reflect the fact that there was an issuance of the FPA, or, if the give the IRS wide latitude to consider underreporting of ordinary income by partnership contests the partnership such facts and circumstances, but the the partnership for that taxable year. adjustments in court, the year the court rules do not narrowly define the Furthermore, if there were no imputed decision is final. It is not administrable circumstances when that occurs. See underpayment because for the IRS to determine an imputed § 301.6225–1(d)(1) and (e)(1). The recharacterization adjustments were underpayment based on the potential regulations are designed to maintain allowed to net, there would be no tax attributes from time periods that are flexibility for both the IRS and the statutory basis for imposing an interest not fixed relative to the reviewed year partnership to allow for the particular charge on the partnership as suggested and that may result in different partners examination to accommodate the by the comment. being the relevant partners. The final unique circumstances of each Accordingly, the comment’s regulations reflect the amendments to examination. Based on these reasons suggestion to net adjustments across section 6225 by the TTCA, and therefore alone, the comment’s suggestion was different categories of gain or loss to the final regulations were not revised in not adopted. reflect taxes that were previously paid response to this comment. The comment’s suggestion was also was not adopted, though the effect of not adopted because it is inconsistent such adjustments may be mitigated, in v. Recharacterization Adjustments with the overall approach applied to whole or in part, under certain One comment recommended that the how recharacterization adjustments are circumstances through the modification grouping and subgrouping rules be taken into account in determining an procedures or by making a push out reconsidered due to the concern that imputed underpayment. Proposed election under section 6226. The final under the proposed regulations, the § 301.6225–1(c)(6)(iii) provided that a regulations under § 301.6225–1(e)(2) do inability to net certain overpayments recharacterization adjustment results in clarify, however, that positive and underpayments could lead to at least two separate adjustments: One adjustments and negative adjustments taxpayers not receiving an appropriate adjustment reversing the improper within the same subgrouping may only adjustment for taxes previously paid. characterization of the partnership- net within that same subgrouping. No The comment cited to Example 4 under related item, and the other adjustment netting is permitted across proposed § 301.6225–1(h) to highlight effectuating the proper characterization subgroupings. this concern. In Example 4, the IRS of the partnership-related item. determines that $125 of long-term Generally, one of those adjustments is a vi. Credits and Creditable Expenditures capital gain should have been reported positive adjustment and the other is a In determining whether partnership as $125 of ordinary income, resulting in negative adjustment, but each adjustments result in an imputed a $125 increase in ordinary income and adjustment is normally the same underpayment, adjustments to credits a corresponding $125 decrease in long- numerical amount ($125 in the case of are placed in the credit grouping term capital gain (effectively, a $125 Example 4 under proposed § 301.6225– described under § 301.6225–1(c)(3). One increase in long-term capital loss). The 1(h)). Under proposed § 301.6225– comment suggested that for increase in ordinary income results in 1(d)(3)(iv), the positive adjustment and administrative efficiency, it would make an imputed underpayment, and the the negative adjustment are each placed sense to group and order credits in increase in long-term capital loss is an into its own separate subgrouping. accordance with Form 3800 and adjustment that does not result in an Because an adjustment in one recommended that the regulations imputed underpayment. subgrouping may not be netted against provide for grouping and ordering

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credits in such a manner. This comment that do not result in an imputed including whether and to what extent was not adopted. underpayment, because any adjustment any partners actually benefited from the As discussed earlier in section 3.A.ii. to a credit would not result in an original credits. Accordingly, the final of this preamble, the subgrouping rules imputed underpayment. regulations include a credit recapture under § 301.6225–1(d)(3)(i), including With the exception of the rules under amount in the amount of the imputed the application of those rules to the § 301.6225–1 regarding foreign tax underpayment, and this amount is not credit grouping, take into account any creditable expenditures, the Treasury limited to the amount partners actually limitations or restrictions under the Department and the IRS have benefited from the recaptured credits Code. Therefore, to the degree the Code determined not to issue regulations unless the partnership can affirmatively would require certain credits to be regarding the treatment of creditable demonstrate to the satisfaction of the subgrouped within the credit grouping expenditures at this time. However, the IRS during exam either before issuance to reflect any limitations or restrictions, final regulations do clarify that the of the NOPPA or on modification the the rules under § 301.6225–1(d)(3)(i) general subgrouping principles under appropriate partner-level tax treatment. allow for that result. In addition, when § 301.6225–1(d)(3)(i) apply when The second situation described by the determining subgroupings the IRS may subgrouping adjustments to creditable comment involves a partnership take into account the facts and expenditures. The comments received adjustment that results in a credit that circumstances of a partnership and its with respect to creditable expenditures is incorporated into the imputed partners. It may be the case that the remain under consideration, and future underpayment calculation, presumably subgroupings with respect to a guidance will be issued when as a reduction to the imputed particular set of adjustments ultimately appropriate. The final regulations also underpayment and that may later be reflects the manner in which credits are clarify that a net positive adjustment to subject to recapture. The comment grouped and ordered on Form 3800, but creditable foreign tax expenditures is recommended that the regulations that may not always be the case. The excluded from the calculation of the require the partnership to notify regulations provide the necessary total netted partnership adjustment partners that they received the benefit of flexibility to achieve the result under § 301.6225–1(b)(2). such credits and that the partners may suggested by the comment without Comments were also requested be obligated to recapture those credits at binding the IRS and partnerships to a regarding how credit recapture a later date. The comment suggested this particular manner in which credits must situations should work under the notice could be provided as notes to the be subgrouped. centralized partnership audit regime. adjustment year Schedule K–1. This Additionally, because the Form 3800 One comment offered suggestions with comment was not adopted. The final and the underlying statutory rules it respect to two credit recapture regulations do not require that the reflects may change over time, it is situations. The first situation involved a partnership notify the partners of any unwise to link the regulatory rules for credit recapture that results from a risk of future credit recapture, though subgrouping with the form’s partnership adjustment. The comment the partnership is not prohibited from methodology for grouping credits. recommended in that situation that the doing so if the partnership determines Relying on the general subgrouping regulations should incorporate any that such notification would be rules under § 301.6225–1(d)(3)(i) gives credit recapture into the calculation of beneficial to the partners and the the IRS and partnerships the flexibility any imputed underpayment to the partnership. Except where required for to adapt to changes in the Code and any extent that the originating credits were the operation of the provisions of the form changes without needing to amend generated from partnership activities, centralized partnership audit regime, the regulations. but that this incorporation should be the Treasury Department and the IRS do Adjustments to creditable limited to partnerships with partners not generally regulate communications expenditures are placed in the that actually would have benefited from between the partnership and the creditable expenditure grouping the original credits. This partners, and therefore the final described under § 301.6225–1(c)(4). recommendation was partially adopted. regulations do not impose a requirement Proposed § 301.6225–1(c)(4)(B), A recapture of a credit generated by for notification by the partnership (d)(3)(iii), and (e)(3)(iii) provided partnership activities constitutes a concerning possible credit recaptures. specific rules relating to foreign partnership adjustment as defined Because a net negative adjustment to creditable tax expenditures. Aside from under § 301.6241–1(a)(6), and the credit a credit, that is, an increase in an item the general rule regarding what recapture would constitute a positive of credit, would generally be subject to constitutes a creditable expenditure, no adjustment under § 301.6225– limitations under the Code, the final additional rules relating to creditable 1(d)(2)(iii)(A) and be placed in the regulations under § 301.6225–1(e)(3)(ii) expenditures were proposed. credit grouping under § 301.6225– clarify that a net negative adjustment to The Treasury Department and the IRS 1(c)(3). The full amount of the credit a credit is treated as an adjustment that requested comments on the appropriate recapture would be taken into account does not result in an imputed treatment of creditable expenditures. in the determination of the imputed underpayment as described in One comment suggested any items that underpayment, unless the partnership § 301.6225–1(f)(1), unless the IRS may be treated as a credit when taken requests, subject to IRS approval, that determines otherwise. This rule ensures into account by a partner and not the credit recapture should be taken into that the total netted partnership otherwise limited (for instance, by their account differently during the adjustment is not inappropriately non-creditable status against the partnership-level proceeding or reduced by an increase in credit that alternative minimum tax) be credited pursuant to a modification request. See would subject to limitations in the against the imputed underpayment § 301.6225–1(d)(1), (e)(1), § 301.6225–2. hands of the partners of the partnership. amount. For other items which may be This rule is necessary because, as subject to limitations at the individual discussed earlier in this section of this B. Modification of an Imputed level, the comment suggested that the preamble, in general, the initial Underpayment regulations provide rules similar to determination of an imputed Proposed § 301.6225–2 provided the those rules proposed under proposed underpayment does not account for the rules and procedures regarding § 301.6225–3, regarding adjustments attributes of the partnership’s partners, modification of an imputed

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underpayment by the partnership. The amount is the correct amount of tax for The same comment also suggested Treasury Department and the IRS that partner after taking into account the that the modification procedures permit received multiple comments regarding partnership adjustment and includes a partnership to demonstrate how an proposed § 301.6225–2 focusing on the any allowable reductions that may offset adjustment would impact its partners following areas: (1) Modification in any additional income determined at and reduce an imputed underpayment general; (2) timing of modification the partnership level. without a need for the partners to file an requests and determinations; (3) Regarding the comment’s concern that amended return. The other proposed amended return modification; (4) the a partnership does not have an modification procedures provided alternative procedure to filing amended opportunity to challenge the IRS’s multiple opportunities for partnerships returns; (5) rate modification; (6) method of calculating a proposed to demonstrate the impact of modification pertaining to certain adjustment amount, proposed adjustments on specific partners. The passive losses of publicly traded § 301.6225–2(d)(6) provided a procedure alternative procedure to filing amended partnerships; (7) modification for modifying the composition of an returns is one way in which this type of pertaining to qualified investment imputed underpayment. Under modification may be achieved. Under entities; (8) closing agreement § 301.6225–2(d)(6), a partnership may § 301.6225–2(d)(2)(x), a partnership may modification; and (9) recommendations request that the IRS include one or more submit on behalf of a partner, in to add additional types of modifications. partnership adjustments in a particular accordance with forms, instructions, and other guidance prescribed by the i. Comments Pertaining to Modification grouping or subgrouping. If certain IRS, all information and payment of any in General negative partnership adjustments should be treated as if no limitations or tax, penalties, additions to tax, The modification provisions under restrictions in fact apply to the partners additional amounts, and interest that § 301.6225–2 are designed to determine to whom the adjustments are allocated would be required to be provided if the an imputed underpayment amount that and the partnership can establish this partner were filing an amended return. reflects, as closely as possible, the tax result, if approved, on modification, If the partnership avails itself of this the partners would have paid had they such negative adjustments may be procedure with respect to a partner, the correctly reported the adjusted items, properly grouped or subgrouped with partner does not need to also file an while at the same time maintaining the other adjustments and therefore allowed amended return in order for efficiencies of a streamlined to net against those adjustments in modification to be approved. The examination and collection process. See accordance with § 301.6225–1(e) to amended return procedures and the JCS–1–16 at 65–66. One comment alternative procedure to filing amended suggested, that the modification reduce the amount of the imputed underpayment. returns are discussed further in sections provisions do not operate as intended 3.B.iii. and 3.B.iv. of this preamble. because those provisions do not To the extent the comment was Other modification procedures also expressly permit a modification to suggesting that the modification provide the partnership with an reflect how the partners actually took an procedures do not provide the opportunity to demonstrate the effect of item into account, to account for partnership an opportunity to challenge adjustments on specific partners. For reductions that would be permitted to the substance of partnership instance, tax-exempt modification offset an increase under generally adjustments, the comment is correct but provides an opportunity for the applicable law, or to otherwise no change is made in response to the partnership to demonstrate that expressly challenge the IRS’s method of comment. The statutory modification partnership adjustments are allocable to calculating a proposed adjustment procedures are designed to allow the a partner that would not owe tax by amount. Except as described later in this partnership to modify the amount of the reason of its status as a tax-exempt section, no changes to the regulations imputed underpayment, not adjust the entity. Rate modification allows were made in response to this comment. substance of the partnership partnerships to demonstrate that The Treasury Department and the IRS adjustments that underlie the imputed partners would be subject to a lower rate do not agree with the comment’s underpayment. The substance of than the highest rate of tax applied to characterization of how the partnership adjustments are determined calculate the imputed underpayment. modification provisions operate because by the IRS on examination, and may be Because the partnership has many the modifications available under further revised in the IRS Appeals avenues within modification to § 301.6225–2 permit a partnership to Office (IRS Appeals) or by a court in a demonstrate the effect a partnership achieve the results sought by the proceeding for readjustment brought adjustment would have on specific comment. For instance, both the under section 6234. Although the partners, no new modification amended return procedure and the comment did not explicitly state it as procedures were adopted in response to alternative procedure to filing amended such, to the extent the comment was this comment. returns provide an opportunity for the recommending a rule under § 301.6225–2 Former proposed § 301.6225–2 partnership to request modification to that allows a modification to reflect a permitted a partnership to request reflect how an item was actually taken circumstance where a partner actually modification with respect to an indirect into account by its partners and to took an item into account in a manner partner (as defined in § 301.6241– account for offsetting reductions consistent with how that item was 1(a)(4)). See, for example, former permitted under generally applicable adjusted by the IRS during the proposed § 301.6225–2(d)(2). One law. When a partner files an amended partnership proceeding, this suggestion comment suggested that permitting return including his share of the was adopted. As discussed later in partnerships to modify their imputed partnership adjustments, the amended section 3.B.ix. of this preamble, the final underpayment to account for direct and return reflects a tax amount based on regulations under § 301.6225–2(d)(2)(ii) indirect partners is consistent with the how the partner originally reported the allow a partnership to request objective of determining an imputed partnership-related item prior to modification based on how adjusted underpayment amount that is as close as adjustment compared to how the items were taken into account by a possible to the tax due if the partnership partnership adjustment affects the partner prior to the item being adjusted and partners had correctly reported and partner’s original return. This tax by the IRS. paid. The comment further suggested

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that permitting modifications for direct solicitation of a vote by the partnership forms, instructions, or other guidance and indirect partners would also reduce representative. Additionally, if the prescribed by the IRS or as is otherwise the disincentives for partnerships to pay partnership and its partners impose requested by the IRS. The final the imputed underpayment and such a condition on the partnership regulations provide examples of such recommended the final regulations representative through an agreement information, including the information adopt rules permitting modification with the partnership representative, any that was described previously in with respect to indirect partners, failure to adhere to that agreement does proposed § 301.6225–2(c)(ii). The consistent with the proposed not affect actions taken by the information listed in the proposed regulations. partnership representative. See regulations pertained to items that are The final regulations are consistent § 301.6223–2(d). necessary to process the majority of with the comment’s request and adopt Second, the comment recommended modification requests. It is possible, the proposed rules allowing that the IRS agree to automatically grant however, that certain items may not be modification with respect to indirect a request for an extension of the 270-day necessary in every case, and if such partners, provided the indirect partner period for requesting modification if a items are not necessary, or if different is a relevant partner as defined in vote of the partners whether to request items are more appropriate, the IRS will § 301.6225–2(a). The August 2018 modification has been solicited. This describe the information required in NPRM introduced, the term ‘‘relevant comment was not adopted for the forms, instructions, or other guidance. partner’’ to describe any person for reasons discussed in section 3.B.ii. of In this way, the regulations provide the whom modification is requested by the this preamble. flexibility for the IRS to request what is partnership that is a reviewed year Lastly, the comment recommended needed for efficient and effective partner, including a pass-through that the Treasury Department and the processing of modification requests, partner, or an indirect partner. The term IRS share a suggestion with the while maintaining the flexibility to relevant partner does not include, Department of Labor that the adapt information requests in the future. however, any person that is a wholly- Department of Labor clarify that a The final regulations under owned entity disregarded as separate partnership representative will not be § 301.6225–2(c)(2)(i) also clarify that, from its owner for Federal income tax treated as a fiduciary with respect to any pursuant to section 6241(10), the purposes. No comments were received ERISA plan partner if the partnership partnership may be required to submit regarding the definition of relevant representative requests or fails to or file items required to be provided to partner. The final regulations maintain request a modification based on the the IRS under § 301.6225–2 in an the definition of relevant partner from results of a vote of the partners. The electronic format. The form and manner proposed § 301.6225–2(a). rules regarding who is treated as a for submission of anything required to Accordingly, under the final fiduciary with respect to any ERISA be submitted under § 301.6225–2 will be regulations a partnership may request plan are beyond the scope of these described in forms, instructions, and modification with respect to reviewed regulations. However, as requested, the other guidance prescribed by the IRS. year partners (direct partners), including comment has been forwarded to the Lastly, the final regulations under pass-through partners, and indirect Department of Labor. § 301.6225–2(c)(2)(i) clarify that the IRS partners. A partnership may not request Another comment recommended that will deny modification not only for the modification, however, with respect to a the IRS revise proposed § 301.6225– failure to substantiate a modification direct or indirect partner that is a 2(c)(2)(ii) to limit the required request but also for the failure to pay wholly-owned entity disregarded as information submitted with any anything required under § 301.6225–2. separate from its owner for Federal modification request to that specific income tax purposes. information relevant to the type of ii. Timing of Modification One comment noted some concerns modification requested. The comment Proposed § 301.6225–2(c)(3) provided regarding the interaction between the noted that requiring extensive and rules regarding the time for submitting centralized partnership audit regime detailed documentation for each modification information to the IRS. and ERISA. The comment expressed modification request will limit the One comment made three concerns about situations in which the ability of some partnerships to take recommendations regarding these rules. partnership representative must decide advantage of the modification First, the comment suggested that the whether to request a modification that procedure. The comment also urged the final regulations provide a specified benefits non-ERISA partners over ERISA IRS to establish realistic minimal time frame in which the IRS must partners and how that affects the documentation requirements for any respond to a request for modification. discharge of any fiduciary duties under modification request and create This suggestion was not adopted ERISA. To address these concerns, the additional specific relevant because the regulations under section comment made three recommendations. requirements for the various types of 6235 provide a time frame within which First, the comment recommended that modification requests permitted under the IRS will respond to a partnership’s the regulations provide that the the proposed regulations. The comment modification request. partnership representative may solicit a further noted that the ability of the IRS Pursuant to § 301.6235–1(a)(2) and vote of the partners in the partnership to request supplemental information (b), in the case of any modification of an in determining whether to request a prior to approval (as provided in imputed underpayment, no partnership modification. This recommendation was proposed § 301.6225–2(c)(4)) will adjustment may be made later than the not adopted. ensure that the IRS obtains date that is 270 days after the date on The decision whether to solicit a vote documentation they deem necessary for which everything required to be of the partners in the partnership as part a particular set of facts and submitted under § 301.6225–2 for of determining whether to request circumstances. This comment was modification is so submitted. The date modification or a particular type of adopted. on which everything required to be modification is fully within the The final regulations under submitted is so submitted is the date the authority of the partnership § 301.6225–2(c)(2)(ii) clarify that the modification period ends or expires. representative. Nothing in the final partnership representative must furnish § 301.6235–1(b)(2). Accordingly, in the regulations prevents or requires the to the IRS information as required by case of a modification request, the IRS

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must generally mail an FPA to make a of the partnership or the IRS. See consented to by the IRS. Nevertheless, if partnership adjustment within 270 days §§ 301.6225–2(c)(3)(ii); 301.6235–1(d). more information is required from the of the date the modification period Regardless of which 270-day period partnership, the IRS appreciates the ends. the comment was referring to, the need for partnerships to know when To the extent the comment was comment was not adopted. The final that information is due. The IRS plans requesting a deadline by which the IRS regulations do not provide that the IRS to establish appropriate procedures must respond to a request for will automatically agree to an extension through forms, instructions, or other modification prior to the time limit for of either period under any guidance. As a result, the regulations making adjustments under section 6235, circumstance. Whether an extension of were not revised in response to this the comment was not adopted. It is not the time to submit modification comment. information, or an extension of the time administrable for the IRS to impose a iii. Amended Returns deadline that would apply in every case to consider such information, is that is earlier than the statutory warranted is based on the facts and Proposed § 301.6225–2(d)(2) provided deadline imposed by section 6235. The circumstances. In some cases an rules regarding modification with facts and circumstances of each extension may be appropriate, for respect to amended returns filed by administrative proceeding, the example, where there is a pending partners. Proposed § 301.6225–2(d)(2)(i) partnership adjustments made during request and additional information provided that a partnership may request that proceeding, and the modifications would help clarify the issues. In other modification of an imputed underpayment based on an amended that are requested may differ greatly. cases an extension may not be return filed by a relevant partner Similarly, the complexity of the appropriate, for example, where it is provided all of the partnership modification process may range from clear that more information is likely to adjustments properly allocable to such simple and straight forward to highly be of little to no value. Accordingly, relevant partner are taken into account. complex. Finally, for those modification while the regulations allow for an One comment recommended that the requests that are more complex or that extension of both the period to submit regulations clarify whether modification require additional documentation, the modification information and the period will be allowed if a partner files an partnership may extend the time period in which the IRS has to consider such amended return taking into account for submitting modifications under information, neither extension is adjustments that make up one imputed § 301.6225–2(c)(3) to allow for automatic but rather must be based on the facts and circumstances of the underpayment, while not taking into additional time and any additional particular case. account adjustments that make up a documentation. For the reasons Lastly, the comment suggested the separate imputed underpayment which discussed in section 3.B.iii. of this regulations provide a time frame for a also affects that partner. This comment preamble, the IRS plans to adopt partnership to respond to an IRS request was not adopted because its procedures under which the IRS will for additional information during the recommendation contradicts the statute. respond to a request for modification in IRS’s review of a modification request. The requirement in proposed the FPA, including the planned time The comment recommended the time § 301.6225–2(d)(2)(i) that partners take frame for responses. It is important to frame for responding be a minimum of into account all partnership adjustments tax administration that these procedures 60 days and suggested that this issue is derives from section 6225(c)(2)(A)(ii). are developed in separate guidance to particularly significant if the request Section 6225(c)(2)(A)(ii) states that allow for additional flexibility as the occurs near the expiration of the 270- when partners file amended returns in IRS gains more experience with the day period. This comment was not modification, that return must ‘‘take centralized partnership audit regime adopted, but the IRS plans to adopt into account all adjustments’’ under and the modification process. The 270- procedures that will allow a partnership section 6225(a) that are ‘‘properly day period for mailing an FPA therefore time to provide additional information, allocable to such partners (and the effect acts as the outside time frame within when necessary, with respect to a of such adjustments on any tax which the IRS must respond to a request particular request for modification. attributes).’’ Section 6225(a) refers to for modification. Because this time Because not all modification requests ‘‘any adjustment by the Secretary to any frame exists elsewhere in the will require additional information from partnership-related items with respect regulations, the final regulations under the partnership, this time frame is not to any reviewed year of a partnership § 301.6225–2 do not provide a separate provided for in the regulations. In . . .’’ Section 6225(c)(2)(A)(ii)’s time frame for providing a response to addition, the response time may depend reference to ‘‘all adjustments’’ under a modification request. on the facts and circumstances. For section 6225(a) does not distinguish The comment also recommended that example, as the comment notes, if a between partnership adjustments that the final regulations provide that if there request for additional information result in an imputed underpayment and is a pending request for modification at occurs near the end of the 270-day partnership adjustments that do not the expiration of the 270-day period, the period to submit information, there result in an imputed underpayment. By IRS will automatically agree to an might not enough time to allow for a 60- not distinguishing between the types of extension of that period until at least 30 day response period. While it is true the partnership adjustments, the language of days after they provide their response. partnership and the IRS may agree to section 6225(c)(2)(A)(ii) indicates that It is not clear from the face of the extend the 270-day period, this will not all partnership adjustments must be comment which 270-day period the always be the case. Accordingly, a rule taken into account by partners filing comment was referring to—the 270-day establishing a 60-day time frame for modification amended returns, as period under § 301.6225–2(c)(3)(i) in responding to requests for additional opposed to only those adjustments that which everything required for information in every case is not are associated with the imputed modification must be submitted or the appropriate and would, in the example underpayment for which modification is 270-day period under § 301.6235–1(b) in noted in the comment, serve as an requested. Consistent with section which the IRS must mail an FPA to automatic extension of the 270-day 6225(c)(2)(A)(ii), the final regulations make a partnership adjustment. Both period to submit information that might under § 301.6225–2(d)(2)(i) require that periods may be extended at the request not be requested by the partnership or even in the case of multiple imputed

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underpayments, partners filing modification with respect to the adequate amount of time, partners modification amended returns must take amended return. should be allowed at least 270 days into account all partnership This rule is necessary to ensure that from the time of the receipt of an FPA adjustments, not just the adjustments the IRS collects the entire amount of tax to file amended returns. The comment associated the imputed underpayment that results from the partner’s share of further recommended that the 270-day for which modification is requested. partnership adjustments before period be tolled at any time during The comment also asked whether approving the partnership’s request that which a court proceeding pursuant to there are any specific requirements or the imputed underpayment be section 6234 is ongoing. Another limitations that apply in the case of an calculated without regard to those comment recommended that the final amended return modification request adjustments. Allowing a partner to enter regulations commit the IRS to freely made with respect to one imputed into an installment agreement grant extensions of the 270-day period underpayment, but not with respect to undermines the ability of the IRS to and other relevant periods and allow a separate imputed underpayment. collect tax on those adjustments both taxpayers to seek modification of the Nothing in the regulations imposes from the partnership, because the underpayment by filing an amended specific requirements or limitations on adjustments would no longer be return, or use the alternative procedure the partnership or its partners when reflected in the imputed underpayment, to filing amended returns, within 60 utilizing amended return modification and from the partner that may days after there has been a final with respect to only one imputed ultimately default on the installment determination in the partnership case. underpayment. The partnership and its agreement. If a partner ultimately does These comments were not adopted. partners must comply with all the not pay, the IRS may not be able to First, allowing modification requests, requirements under § 301.6225–2(d)(2) collect against that partner and likely including amended returns, after the with respect to any request for amended would be outside the time period within FPA is mailed or after there is a court return modification, including a request which it must make partnership decision with respect to the partnership made for only one imputed adjustments, preventing the IRS from adjustments is contrary to the statutory underpayment in the case of multiple collecting any additional imputed scheme under section 6225(c). The imputed underpayments. underpayment from the partnership. statutory scheme under section 6225, Similar concerns are presented by Proposed § 301.6225–2(d)(2)(ii)(A) section 6231, and section 6235 envision allowing a partner to enter into an offer provided that an amended return a process where the IRS first mails a in compromise. Moreover, a rule modification request will not be NOPPA to the partnership that includes permitting partners to request approved unless the partner filing the the proposed partnership adjustments installment agreements and offers in amended return has paid all tax, and proposed imputed underpayment, compromise as alternatives to full penalties, additions to tax, additional followed by a modification period, payment would increase the amounts, and interest due as a result of which is followed by the FPA. The administrative burden on the IRS by mailing of the NOPPA starts the 270 day taking into account the adjustments at requiring the IRS to evaluate whether period within which anything required the time such return is filed with the such requests were appropriate, slowing to be filed or submitted in the IRS. One comment suggested that the down the modification process in modification process must be filed or full payment requirement under general, and complicating the amended submitted to the IRS. After the close of § 301.6225–2(d)(2)(ii)(A) should be return process specifically. Accordingly, satisfied if the partner is in compliance the final regulations retain the rule that this 270-day period, which may be with available IRS administrative full payment of any tax, penalties, and extended with the consent of the IRS, if processes to make full payment, for interest due as a result of taking into modification is requested, the IRS has example, an installment payment account the partner’s allocable share of an additional 270 days to modify the agreement. Another comment adjustments is required in order for imputed underpayment as necessary to recommended that the regulations modification to be approved with reflect approved modifications and mail permit partners to submit requests for respect to a partner’s amended return. In the FPA, which will describe the final installment agreements or offers in addition, the final regulations under partnership adjustments and imputed compromise within the 270-day § 301.6225–2(c)(2)(i) clarify that a underpayment. After the FPA is issued, modification period. These comments failure by any person to make any there is no basis for the IRS to consider were not adopted. payments required with respect to a further modifications. The examination Section 6225(c)(2)(A)(iii) provides modification request within the time is complete and the partnership may that if one or more partners file restrictions described in § 301.6225–2(c) then pay the imputed underpayment or amended returns during modification, will result in a denial of a modification elect the push out. The partnership may such returns take into account the request. also challenge the partnership adjustments properly allocable to such Proposed § 301.6225–2(c)(3) provided adjustments in court. partners, and ‘‘payment of any tax due that all information required under Section 6225(c)(2), which provides is included with such returns,’’ the § 301.6225–2 with respect to a request the procedures for filing amended imputed underpayment is determined for modification must be submitted on returns and the alternative procedure to without regard to the adjustments so or before 270 days after the date the filing amended returns was enacted at taken into account. Payment of any tax NOPPA is mailed, unless that period is the same time as section 6225(c)(7). The due is a statutory requirement under extended with the permission of the amended return modification and the section 6225(c)(2)(A)(iii). Consistent IRS. Several comments recommended alternative procedure to filing amended with section 6225(c)(2)(A)(iii), proposed partners only be required to file returns are just two of many statutory § 301.6225–2(d)(2)(ii)(A) required full amended returns or make payments on modifications. Had Congress intended payment of any tax, penalties, and those returns after the issuance of the for there to be an exception to the 270- interest due at the time the amended FPA to allow the court to review the day period under section 6225(c)(7) for return is filed with the IRS. If payment partnership adjustments before amended return modification, as is not included with the amended modification is requested. One comment suggested by the comments, Congress return, the IRS will not approve recommended that, to provide an could have included such an exception

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when enacting both statutory readjustment of the partnership process. Accordingly, the regulations provisions. adjustments in the FPA and to elect the have not adopted this comments Second, extending the 270-day period push out under section 6226 with suggestion. beyond the date of the issuance of the respect to the imputed underpayment. Proposed § 301.6225–2(d)(2)(vii)(B) FPA could result in several tax The comment does not explain how a provided that if a relevant partner files administration issues for the IRS. rule that would allow the IRS to further an amended return for purposes of Section 6225(c)(8) provides that any alter the imputed underpayment after modification, such partner may not file modification of the imputed the partnership has elected push out or a subsequent amended return without underpayment amount ‘‘shall be made petitioned a court for a readjustment the permission of the IRS. One comment only upon approval of such would work. Such a rule would raise recommended that the regulations modification by the Secretary.’’ A numerous tax administration concerns clarify that the restriction in proposed request for amended return modification and potentially cause confusion for the § 301.6225–2(d)(2)(vii)(B) relates to only must therefore be approved by the IRS. partnership and its partners as to what those items related to a partnership If the partnership fails to comply with the IRS finally determined and when. adjustment. Similarly, another comment the requirements under the rules under In addition, the IRS is limited as to recommended that the IRS ease the § 301.6225–2, the IRS may decline to when it may make a partnership restriction on the ability of a taxpayer approve the request for modification. In adjustment. According to section using the amended return modification order to adopt the comment’s suggestion 6235(a)(2), ‘‘no adjustment under this procedure to file subsequent amended that amended returns and associated subchapter for any partnership taxable returns when the subsequent amended payments not be provided until after the year may be made after . . . in the case return does not affect the items included FPA is issued, the IRS would need to of any modification of an imputed in the partnership’s audit adjustments. wait to approve the modification request underpayment under section 6225(c), The comment stated that requiring a with respect to that amended return the date that is 270 days [including taxpayer to request permission from the until after the partnership and its extensions] . . . after the date on which IRS before filing an amended return is partners submitted what was required to everything required to be submitted to an administrative burden in terms of be provided under the modification the Secretary pursuant to such section is time and resources for both the taxpayer rules. This would prevent the IRS from so submitted.’’ In order to adopt the and the IRS. including its approval or disapproval of comment allowing an extension of the Another comment recommended that the modification request in the FPA, 270-day modification submission period the regulations not prohibit a partner delaying a determination with respect to beyond the issuance of the FPA, the IRS who has amended her return as part of the modification until some later date. would be required to issue two FPAs. the modification process from amending The FPA—the notice of final The first FPA would address the her return again without the permission partnership adjustment—is designed to partnership adjustments and the of the Service. This comment suggested be the final notice to the partnership imputed underpayment prior to revising the forms for filing amended from IRS, not an interim notice subject consideration of modifications. The returns to (1) include a check-box asking to further modifications or changes. second FPA would be issued at some whether the taxpayer filed a prior A partnership adjustment is defined later date before the expiration of the amended return for that same tax year under section 6241(2) as an adjustment period for making adjustments under that was the basis for a modification to a partnership-related item, and a section 6235. Nothing in section under section 6225(c) and (2) require partnership-related item is defined as 6235(a)(2) prevents the IRS from mailing any taxpayer who answers in the including an imputed underpayment. a second FPA; however, under section affirmative to attach to the subsequent An adjustment to an imputed 6231(c), if the partnership petitions the amended return an explanatory underpayment is, therefore, a original FPA under section 6234, the statement and certain related partnership adjustment as defined in Secretary may not mail another notice documents, such as the prior amended section 6241(2). The approval of a with respect to the same taxable year in return. Another comment recommended modification affects the amount of an the absence of fraud, malfeasance, or the regulations clarify that if a partner adjustment that is taken into account in misrepresentation of a material fact. In filed an amended return and paid tax on the imputed underpayment under the other words, in the situation its share of adjustments, and rules described in § 301.6225–2(b). contemplated by the comment, in which modification was approved with respect Therefore, the IRS must approve or a partnership petitioned the FPA, in to the amended return, the partner may disapprove of a modification before the general, the IRS could not issue a later claim a refund of the tax paid if the expiration of the time period for making second FPA to approve or deny partnership successfully appeals or adjustments under section 6235 or the modification issues because the IRS contests the adjustment. IRS will have lost its opportunity to do would be prevented from doing so The final regulations clarify that the so. Relatedly, and in addition to the under section 6231(c). restriction under § 301.6225– concern about the statute of limitations, Adopting the comment’s suggestion 2(d)(2)(vii)(B) only applies to if the IRS waits until after the issuance would prevent the IRS from exercising subsequent amended returns that of the FPA to make further adjustments the discretion to approve modification change the treatment of partnership to the imputed underpayment, for which Congress provided it adjustments previously taken into modification could extend for an authority in section 6225(c)(8). The IRS account on a prior amended return that indefinite period of time, which would needs this discretion to ensure that was filed during modification or are lead to uncertainty and administrative requests for modification are filed with respect to an imputed challenges for the partnership, the appropriate for the partnership and that underpayment that was taken into partners, and the IRS. This is the administrative proceeding process is account on a prior modification particularly true with respect any uniform between partnerships. Partners amended return. The final regulations adjustments after the mailing of the FPA also have other options, such as also removed the requirement that because the mailing of the FPA imbues subsequent amended returns, to address limited further amended returns filed the partnership with certain rights, such some concerns regarding making with respect to an imputed as the right to petition a court for a payments during the modification underpayment. The final regulations

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provide exceptions to this rule if the Comments and Explanation of amended return filed by a pass-through modification amended return or all Revisions, the final regulations under partner and the information that form modifications become inapplicable to § 301.6225–2(d)(2)(vii) now clarify that will need to contain. This comment was the reviewed year. For instance, a court partners may file additional amended not adopted. The form required for any could determine after the issuance of returns with respect to partnership amended return, including an amended the FPA that the IRS’s determination adjustments or imputed underpayments, return filed by a pass-through partner, was erroneous in whole or in part, and including in the case of denied and the information required on that there was no longer an imputed modification or court readjustment. To form will be set forth in forms, underpayment or the imputed file a subsequent amended return, the instructions, and other guidance underpayment should be reduced. In partners must do so in accordance with prescribed by the IRS. Setting forth this that case, the amended returns forms, instructions, and other guidance information in forms, instructions, and submitted during modification would prescribed by the IRS. A partner that other guidance gives the IRS the have been with respect to an imputed modifies using the alternative procedure flexibility to adapt the form and its underpayment that either no longer to filing amended returns as described contents without having to amend the existed or was altered. The in section 6225(c)(2)(B) that seeks a regulations. This flexibility preserves modifications in that case would either refund for an amount paid as part of government resources and expedites the be wholly or partially inapplicable. those procedures must follow the rules time in which taxpayers will know of Alternatively, during the modification of § 301.6225–2(d)(2)(vii)(B) and (C). changes to the statement requirements. process, after a partner files an amended There is no separate process for partners At the same time, the IRS recognizes the return for purposes of modification, the that modify using the alternative need of taxpayers to know of the IRS could deny modification under procedure to amended returns. information required in order to comply § 301.6225–2(c)(2)(i). In those cases, the Former proposed § 301.6225– with the regulations. The IRS plans to partner may file a subsequent amended 2(d)(2)(vii) provided that a pass-through develop and release drafts of forms and return to reverse the treatment of partner may elect, solely for the instructions for public inspection as partnership adjustments taken into purposes of modification, to take into they are completed. account as part of the request for account its share of the partnership Another comment recommended that modification that is no longer adjustments and make a payment on the regulations address the situation in applicable, subject to the period of behalf of its partners. If modification which a partner files an amended return limitations under section 6511. In was approved with respect to the pass- but incorrectly calculates the interest response to the comment, the final through partner, the partnership was not amount due and subsequently receives regulations also remove the requirement permitted to request modification based an additional assessment from the IRS. that the partners request permission on amended returns filed by upper-tier The comment expressed concern that before filing subsequent amended direct and indirect partners of the pass- the incorrect calculation of interest and returns. The final regulations also through partner. Former proposed resulting shortfall in payment may clarify that the restrictions on amended § 301.6225–2(d)(2)(vii). One comment result in an inadvertent denial of the returns also apply to other claims for suggested that the regulations should modification request. Another comment refund. permit a modification of a pass-through recommended a rule that a de minimis partner’s payment amount based on shortfall of interest or penalties One comment recommended amended returns filed by its upper-tier resulting from a good faith effort by a clarification about whether and how the owners. taxpayer to calculate the correct amount partner can file a request for refund if This suggestion was adopted in the shall not result in a denial of a the IRS denies a modification based on August 2018 NPRM revisions to modification request. a partner’s filing of an amended return § 301.6225–2(d)(2). Proposed The comment recommending a good and payment of tax (or the use of the § 301.6225–2(d)(2)(vi)(B), as revised in faith de minimis rule to address alternative procedure to filing amended the August 2018 NPRM, provided that situations in which a partner has a returns) or if the partnership files a in accordance with forms, instructions, shortfall of interest or penalties was not petition in court of the FPA which and other guidance, a pass-through adopted. First, allowing a good faith de results in an adjustment in the partner making a payment under minimis rule for interest or penalties is partnership’s favor. The same comment § 301.6225–2(d)(2)(vi)(A) may take into inconsistent with the centralized requested clarification on how a account modifications with respect to partnership audit regime’s approach of taxpayer who has filed an amended its direct and indirect partners to the allowing modification of the imputed return or executed a closing agreement extent that such modifications are underpayment if partners fully account under section 6225 would receive the requested by the partnership and for adjustments by taking them into benefit of the reduced tax liability of the approved by the IRS. Therefore, to the account, paying any resulting amounts revised adjustment amount. Pursuant to extent an upper-tier partner of the pass- due as if the partnership and partners section 7121, a closing agreement through partner has filed an amended had reported correctly the first time. approved by the IRS is final and return, the partnership has requested Because amended return modification is conclusive. Accordingly, as a general modification with respect to that occurring years after any tax would have rule, a partner may not request a refund amended return, and the modification is been due as a result of the partnership of amounts agreed to in, and paid with, provided, the pass-through partner may adjustment, partners with an a closing agreement, though the take into account that amended return underpayment must pay interest to determination of whether a partner in accordance with forms, instructions, compensate the government for the time could file further amended returns or or other guidance when making a value of money on the underpayments. claims for refund with respect to a year payment in modification. The final Similarly, partners that owe a penalty in which a closing agreement was regulations under § 301.6225– must pay that penalty to fully take into executed would depend on the facts and 2(d)(2)(vi)(B) retain this rule. account the adjustments and allow the circumstances and the agreed upon Another comment recommended that partnership the benefit of modification terms of the closing agreement. As the regulations provide more guidance for those adjustments. A de minimis discussed earlier in this Summary of regarding the form required for an rule that affirmatively blessed some

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dollar amount or percentage shortfall for comment suggested as an alternative collect, as amount related to the either interest or penalties would that the partners be allowed to attach an partnership adjustments without having encourage taxpayers to calculate their explanation or information statement to to delve into the specific tax attributes interest and penalties to fall within the their adjustment year return rather than of each partner. allowed de minimis range to avoid filing an amended return for the Modification, however, provides an disallowance but pay less than is reviewed year. These suggestions were opportunity for the partners and the required. It is inconsistent with the not adopted. partnership to demonstrate that specific collection of amounts determined due Section 6225(c)(2)(C) provides that in tax attributes of partners should have an on examination to systematically allow the case of a reallocation adjustment, effect on the imputed underpayment. a collection of less than all that is due. amended return modification applies With respect to reallocation Second, administering a rule that only if all the requirements of either adjustments, if partners seek to receive allowed partners to underpay what is amended return modification or the the benefit of modification, each owed under § 301.6225–2(d)(2)(ii)(A) as alternative procedure to filing amended partners subject to a reallocation long as they made a good faith effort and returns ‘‘are satisfied with respect to all adjustment must follow the statutory had only a de minimis short fall would partners affected by such adjustment.’’ requirement to file amended returns for result in untenable administrative The statute does not provide any all adjustments in a reallocation complexities for the IRS. The IRS must exception to this rule, including an adjustment. It may be the case that one review all modification requests within exception for situations in which there partner pays on modification and 270 days after the modification request is evidence of a net underpayment of another partner is entitled to a refund. has been submitted. The IRS will need tax. Accordingly, the final regulations However, such a result is unknown to quickly ensure that all relevant retain the rule that all partners affected until the partners demonstrate that fact partners have provided all information by a reallocation adjustment must file through modification. More and payments necessary to approve amended returns or utilize the importantly, section 6225(c)(2)(C) modification. A rule that includes a alternative to filing amended returns in expressly requires that all partners have good faith element would require the order for modification to be approved. taken into account all partnership IRS to engage in a partner-specific This rule ensures that all relevant adjustments and related tax attributes inquiry with respect to any shortfall that partners affected by the reallocation for the modification years and future might be within the de minimis range to adjustment take into account their years. This statutory mandate makes determine whether partner made a good appropriate shares of that adjustment clear that the purpose of this faith effort to comply. A rule that looks and thereby ensures such partners modification is not to ensure that there to the intent of the partner in receive the appropriate tax benefits for is a net tax payment with respect to the determining the amount of interest and the taxable year subject to the partnership adjustments, but instead to penalties is factually intense and would adjustment. ensure that the proper partners have require an inquiry into the state of mind Furthermore, payment and collection taken the adjustments into account of the partner or that partner’s tax of an underpayment is not the only correctly, including in all modification advisor. In a fraction of the time it issue required to be resolved by the years. The requirement that all partners would take to make such an inquiry, the filing of modification amended returns. affected by a reallocation file amended IRS could instead request and receive In some cases, the purpose of the returns is a necessary condition for full payment from the partner. amended returns is to take into account modification to be approved. Therefore, it is not administrable to the tax attributes that may have effects Similarly, the comment’s suggestion inject this additional, burdensome good on other modification years. Certainly, that partners attach a statement to their faith de minimis shortfall rule in the in some cases, the tax effect of adjustment year returns attesting to the final regulations, when the current adjustments taken into account in one fact that they had a net underpayment requirement of full pay is both more year may be offset by tax effect of as a result of the adjustments is not administrable and less burdensome on adjustments in another year or by workable. In an administrative the IRS and partners. another partner, but as described in proceeding, the adjustment year is the If the partnership representative section 3.A. of this preamble, the year in which the FPA is mailed under becomes aware of the shortfall before unmodified imputed underpayment is section 6231 or, if the partnership expiration of the 270-day period, the designed by statute to take into account challenges the adjustments in court, the partnership representative may request only the reviewed year and it does not year such decision becomes final. an extension of the 270-day period in take into account the specific tax Section 6225(d)(2). If a partner was one order to allow for full payment to be attributes of any partner or the effects of of the partners subject to a reallocation made before the modification period the partnership adjustments in adjustment and failed to file an ends. In this way, the partnership modification years or intervening years. amended return, none of the other representative can take steps to ensure An unmodified imputed underpayment amended returns from other partners that all requirements under § 301.6225– will often result in an amount that is subject to the reallocation adjustments 2(d)(2) were satisfied. higher than what the partners could be approved as a modification. As Proposed § 301.6225–2(d)(2)(ii)(C) collectively would have paid had they a result, the imputed underpayment provided that in the case of a taken the adjustments into account would be determined in the FPA reallocation adjustment, all partners properly in the reviewed year. The without reduction with respect to those affected by such adjustment must file unmodified imputed underpayment adjustments. Attaching a statement on amended returns in order for the IRS to protects the IRS’s interests in collecting the next filed return of the partner that approve modification with respect to at least the amount of tax that should failed to file an amended return would those amended returns. One comment have been paid by the partners without have no effect on the imputed suggested that the partners affected by having to separately examine and track underpayment already finally the reallocation adjustment should be all the partners. In other words, the determined. required to file amended returns only if unmodified imputed underpayment Recognizing the costs and burdens there is evidence of a net underpayment represents a simple way to allow the this rule may create for partnerships, of tax by the partners as a whole. The partnership to pay, and the IRS to partners, and the IRS in cases where it

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is clear one partner will not owe tax on pay tax on the portion of adjustments either only the loss partner or only the its share of a reallocation adjustment, allocable to that partner which are income partner take the adjustments the Treasury Department and the IRS subject to tax. The final regulations do into account, would undercut the included a rule within proposed not add an example to this effect statutory framework and directly § 301.6225–2(d)(2)(ii)(C) to mitigate the because the plain language of contradict the plain language of the potential impact of the requirement that § 301.6225–2(d)(2)(ii)(C) addresses the statute. A rule that does not account for all partners file amended returns. point raised by the comment. all aspects of a reallocation adjustment Proposed § 301.6225–2(d)(2)(ii)(C) One comment recommended that the would run contrary to the collection provided that modification may be regulations provide an additional mechanism of the centralized approved in the case of a reallocation modification method in the case of partnership audit regime with respect to adjustment even if a relevant partner reallocation adjustments that would reallocation adjustments. The statutory affected by the adjustment does not file allow a partner to whom a net negative framework requires either that the an amended return or utilize the adjustment is allocated to file an partnership pay an imputed alternative procedure provided the amended return (or use the alternative underpayment representing the partner takes into account its share of procedure to filing amended returns) to additional tax effects of the reallocation the adjustment through other claim a refund of tax arising from such adjustment in the adjustment year and modifications approved by the IRS or if adjustment, on the condition that the take the negative adjustment aspects a pass-through partner takes into partner to whom the net positive into account in that same year or all account the relevant adjustments. For adjustment is allocated, or the affected partners from the reviewed year instance, in the case of an adjustment partnership, has paid the tax must fully account for their share of the that reallocates a loss from one partner attributable to the net positive reallocation adjustment. to another, the IRS may determine that adjustment. Similarly, another comment One comment recommended that the the requirements of § 301.6225– recommended that the regulations regulations clarify whether a taxpayer 2(d)(2)(ii)(C) have been satisfied if one permit a modification of an imputed filing an amended return or requesting affected relevant partner files an underpayment where only the partner a closing agreement under section 6225 amended return taking into account the experiencing additional income (or less for purposes of modification is required adjustment and the other affected deduction, loss, or credit) as a result of to take into account and pay any relevant partner signs a closing a reallocation adjustment files an additional taxes due under chapters 2 agreement with the IRS taking into amended return. These comments were and 2A of the Code. This comment was account the adjustments. Proposed not adopted. adopted. The final regulations clarify § 301.6225–2(d)(2)(ii)(C). As discussed earlier in this section of that a partner filing an amended return this preamble, section 6225(c)(2)(C) or using the alternative procedure to One comment recommended that the provides that in the case of a filing amended returns only is required regulations clarify whether a tax-exempt reallocation adjustment, amended to pay tax due under chapter 1 of the partner eligible for tax-exempt return modification applies only if all Code with respect to the amended modification under § 301.6225–2(d)(3) the requirements of either amended return and the alternative procedure to and allocated a share of a reallocation return modification or the alternative filing amended returns. The exception adjustment must file an amended return procedure to filing amended returns to the limitation of tax to chapter 1 tax to satisfy the requirements under ‘‘are satisfied with respect to all partners is for a pass-through partner filing an § 301.6225–2(d)(2) in order for the IRS affected by such adjustment.’’ This rule amended return under § 301.6225– to approve a modification request with demonstrates that reallocation 2(d)(2)(vi) because the pass-through respect to such partner. The comment adjustments made by the IRS under the partner, but for § 301.6225–2(d)(2)(vi), recommended adding to the regulations centralized partnership audit regime are might otherwise not owe tax under either an explicit statement or an included in the calculation of the chapter 1. Nothing in the final example indicating that such a filing is imputed underpayment unless all regulations limits the IRS’s authority not necessary provided the IRS is partners affected by such adjustments under section 6241(9). The type of tax satisfied that the relevant partner take them into account. Section paid in a closing agreement, however, qualifies as a tax-exempt entity. This 6225(c)(2)(C) does not contain an will depend on the terms of the closing comment was partially adopted by exception to the rule that all partners agreement. The final regulations clarify adding a sentence to § 301.6225– take the adjustments into account. the type of tax paid in these situations 2(d)(2)(ii)(C) indicating the IRS may Consistent with section 6225(c)(2)(C)’s in §§ 301.6225–2(d)(2)(ii)(A) and (d)(8). determine the amended return requirement that all affected partners Another comment asked about the requirement in the context of take the reallocation adjustments into effect on the IRS’s approval of reallocation adjustment is satisfied to account, the IRS has exercised its modification in the case that a the extent an affected relevant partner discretionary authority under section partnership or partner fails to pay taxes meets the requirements of § 301.6225– 6225(c)(6) to permit modification in the under chapters 2 and 2A in 2(d)(3) regarding tax-exempt partners. case of a reallocation adjustment where modification. Because the final The satisfaction of the requirements of a relevant partner affected by such regulations clarify that a partner is only § 301.6225–2(d)(2) (amended return adjustment has met the requirements of required to pay chapter 1 tax in modification and the alternative another modification method and that amended return modification or in the procedure) is only satisfied to the extent modification has been approved by the alternative procedure to filing amended of the tax-exempt portion as defined in IRS. This regulatory exception fits returns, the failure to pay taxes under § 301.6225–2(d)(3)(iii). Therefore, if squarely within the statutory framework chapters 2 and 2A is irrelevant to the certain partnership adjustments of ensuring that all partners affected by approval or denial of modification. The allocable to tax-exempt partners are a partnership adjustment take into questions asked by the comment are subject to tax, and the partner wishes to account their share of that adjustment therefore moot, and no changes were take advantage of amended return and recognize the tax effects of such made in response to the comment. modification, the tax-exempt partner adjustments. Adopting the approach Section 6225(c)(2)(D) provides that may have to file an amended return to suggested by the comments, one where section 6501 and 6511 shall not apply

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with respect to returns filed in 6225(c)(2)(B), titled the alternative any other request for modification and modification. A comment was procedure to filing amended returns (the determine whether it is appropriate in concerned that amended returns filed alternative procedure), which has been the circumstances. after the expiration of the time period in referred to as the ‘‘pull in’’ or ‘‘push in.’’ Another comment recommended that section 6511 would be automatically Several comments recommended that the modifying partner using the ‘‘push rejected by IRS Service Centers, causing the Treasury Department and the IRS in’’ procedure deal directly with the IRS confusion and uncertainty about adopt these procedures in response to exam team during the partnership audit whether the amended return has, in fact the June 2017 NPRM, prior to the because many partners will not want to been filed, and if so, whether it was enactment of the TTCA. The August provide the details of their financial timely. The comment recommended 2018 NPRM proposed rules related to affairs to the partnership representative that the IRS develop a procedure for the the alternative procedure, adopting or the partnership. The regulations do filing of amended returns with the IRS those comments in response to the not provide specific details as to what personnel handling the partnership’s enactment of the TTCA, which included information will need to be provided to examination so that this person can the alternative procedure. the IRS under the alternative procedure, make sure that the return is filed and One comment suggested that the final but the IRS intends to develop such properly processed or alternatively that regulations should include a processes. The partnership, not the the regulations directed taxpayers to modification procedure whereby an partners, however, requests amended include a banner on the top of the imputed underpayment is reduced return modification, and the partnership may satisfy those requirements through amended return stating, in red ink, when the partnership provides the alternative procedure. Because the ‘‘Filed Pursuant to Section 6225(c),’’ to sufficient evidence that the adjustments partnership is responsible for making alert the Service Center that this underlying the imputed underpayment the modification request, the comment amended return should not be would have resulted in a smaller was not adopted at this time. The automatically rejected if it is otherwise imputed underpayment if they had been processes the IRS develops may untimely under section 6511. Another taken into account according to how the ultimately provide that the partners comment recommended that the final partners and the partnership actually submit some information directly to the regulations also require that the treated the partnership-related item. The reviewed-year partner include in the IRS, but the partners will likely be comment described this concept as affidavit filed with the amended return required to provide some information to similar to the ‘‘pull-in’’ procedure modification request the partner’s TIN the partnership representative to request included in the TTCA. The comment and contact information to enable the modification. Nothing in the regulations has not been adopted in its entirety IRS to locate easily the amended return prevents the partnership from working because no one modification provision and payment in its databases. The IRS with third parties or selecting a specifically allows the partnership to intends to develop a process through partnership representative that will not demonstrate that the imputed which the partners would file their share the details of the partners’ underpayment would be reduced if the amended returns, but the regulations do financial affairs directly with the partnership and partners had taken the not specify the details of that process. partnership. The partnership, the The IRS will develop forms and adjustment into account. The purpose of partnership representative, and the instructions directing the partnership the modification process is not only to partners will ultimately be required to and the partners as to how and where reduce the amount of the imputed meet filing requirements established in to file their amended returns submitted underpayment, but for those partners forms, instructions, and other guidance. in modification, and the IRS intends to that take the adjustments into account The same comment also request the relevant partner’s TIN as as part of the modification requested, recommended that partners who part of that process. they are required to pay any additional establish that they are owed a refund Prior to the enactment of the TTCA, tax, interest and penalties due and agree receive such refund through the section 6225(c)(2) stated that section to adjust their tax attributes in exchange alternative procedure rather than by 6511 did not apply with respect to for the IRS approving the modification. filing an amended return or relying on amended return modification, but it was As such, the regulations contain rules § 301.6225–3, which allows an silent on whether section 6501 related to the alternative procedure as adjustment that does not result in an limitations on assessment applied. If a defined in section 6225(c)(2)(B) and imputed underpayment to be taken into partner’s period under section 6501 was § 301.6225–2(d)(2)(x) and under that account in the adjustment year. The closed at the time of modification, the procedure the partnership may satisfy comment recommended that refunds in partner might not be able to participate the requirements of amended return the alternative procedure context only in amended return modification. One modification by submitting on behalf of be allowed after all relevant partners comment recommended that the IRS relevant partners, in accordance with have paid their tax and after the resolve this issue by allowing partners forms, instructions, and other guidance partnership has paid any remaining to extend the relevant section 6501 prescribed by the IRS, all information imputed underpayment. This comment periods. This comment was received in and payment of any tax, penalties, was not adopted. Requests for the response to the June 2017 NPRM, prior additions to tax, additional amounts, alternative procedure under § 301.6225– to the enactment of the TTCA. The and interest that would be required to 2(d)(2)(x) are not claims for refunds for TTCA explicitly provided that section be provided if the relevant partner were the reasons described later in this 6501 does not apply with respect to filing a modification amended return. section of this preamble. To the extent returns filed in modification, so the The partnership must also demonstrate the comment was suggesting that need for such extensions no longer that relevant partners have agreed to refunds could be claimed after the exists. take into account tax attributes issuance of the FPA, which is the point consistent with taking into account the after which the partnership would have iv. The Alternative Procedure To Filing partnership adjustments allocable to been able to pay the imputed Amended Returns that partner. The regulations provide underpayment, the partners may only The TTCA created an additional another modification under § 301.6225– do so pursuant to § 301.6225– statutory modification under section 2(d)(10), where the IRS will consider 2(d)(2)(vii).

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One comment recommended that if refunds. The alternative procedure relevant partner that is a C corporation partnerships and their partners will be provides a streamlined process for and adjustments with respect to capital permitted some simplified method of partners and the partnership generally gains or qualified dividends that are modification (without the need to file to those partners paying additional allocable to a relevant partner who is an amended returns), the regulations amounts of tax, in lieu of filing individual. One comment suggested that should fully explain that concept. This amended returns. This streamlined the rate modification procedures comment was made prior to the passage nature of the alternative procedure accommodate situations in which the of the TTCA and the issuance of the process also benefits the IRS. By sole adjustment is a recharacterization August 2018 NPRM. The preamble to limiting the alternative procedure to just of capital gain as ordinary income. In the August 2018 NPRM explains the those relevant partners that are making that situation, the adjustment increasing alternative procedure as enacted by the payments required under section ordinary income is a net positive TTCA. This section of the preamble to 6225(c)(2)(B)(i) (or that owe no adjustment that results in an imputed these regulations provides additional additional tax), the IRS should be able underpayment, and the adjustment explanation of the alternative to more quickly and efficiently process decreasing capital gain is a net negative procedure. In addition to the requests under the alternative adjustment that does not result in an regulations, the alternative procedure procedure. Partners that have been imputed underpayment. See will be further described in forms, allocated negative adjustments, § 301.6225–1. instructions and other guidance as the including reallocation or The comment recommended revising IRS processes surrounding the recharacterization adjustments, may the rate modification procedures to alternative procedure are developed take those adjustments into account provide that an individual partner may further. using the alternative procedure but by file an amended return, or use the Another comment requested doing so will forego any claim for alternative procedure, to establish that clarification on the interaction of the refund of any amounts related to taking the partner previously paid tax on the alternative procedure with other those adjustments into account. In other recharacterized gain at the lower rate provisions described in the proposed words, if, for instance, the partner had with the result that the portion of the regulations. For instance, the comment offsetting income against which the net positive adjustment allocable to stated the language under proposed negative adjustment might be netted, the such partner would be subject to tax § 301.6225–2(d)(2)(x) was unclear partner could utilize the alternative only at the difference between the whether a taxpayer reporting a negative procedure to make whatever payment highest tax rate and such lower rate. In reallocation or recharacterization resulted from the remaining offsetting addition, the comment recommended adjustment is eligible to use the income. If the partner would be entitled that the rate modification procedures alternative procedure. No changes were to a refund as a result of its allocated allow a corporate partner to demonstrate made to the regulations in response to adjustments, the partner must use the that it paid tax on capital gain with the this comment. amended return procedures to obtain result that the portion of the net positive There is nothing in the regulations that refund. Using the amended return adjustment allocable to the corporate that precludes the partnership from procedures allows the IRS to track the partner would be subject to tax at a zero requesting modification with respect to refund appropriately and ensure it is percent rate, as corporate tax rates on a relevant partner under the alternative processed efficiently. capital gains equal rates on ordinary procedure where the relevant partner The same comment also stated that it income. would otherwise be entitled to a refund was unclear if the alternative procedure Rate modification is designed to had the partner instead filed amended would trigger the restrictions on further address situations in which there is an returns. However, the regulations state amended returns described in adjustment to a particular type of that a request for modification under the § 301.6225–2(d)(2)(vii)(B). The final income that is allocable to an individual alternative procedure is not a claim for regulations under § 301.6225– or an adjustment that is allocated to a refund with respect to any person. As a 2(d)(2)(vii)(B) clarify that the corporate taxpayer. A partnership may result, a relevant partner may not make restrictions on subsequent amended demonstrate that a lower rate of tax a claim for refund via the alternative returns or claims for refund apply applies with respect to that income type procedure. This rule is based on the equally to the amended return process or based on the type of taxpayer. Section statutory requirement under section and the alternative procedure. A 6225(c)(4)(A) (flush language) limits the 6225(c)(2)(B)(i) that requires a partner to subsequent amended return or claim for rates that may apply by providing that pay any amount due under section refund is most likely to occur outside ‘‘[i]n no event shall the lower rate 6225(c)(2)(A)(iii) if the partnership the centralized partnership audit regime determined . . . be less than the highest requests the alternative procedure. If a process. Because the alternative rate in effect with respect to the income partner, after taking into account all procedure does not exist outside the and taxpayer . . . .’’ Proposed partnership adjustments allocable to the centralized partnership audit regime, § 301.6225–2(d)(4) provided a rule partner, would not owe any amount as there is no method by which a consistent with this statutory mandate. required in amended return partnership could use the alternative For instance, with respect to an modification under section procedure to obtain a refund of amounts adjustment attributable to a C 6225(c)(2)(A)(iii), the partner is not paid during modification. The partner corporation, the highest rate in effect for required to make a payment as part of may file a subsequent amended return, the reviewed year with respect to all C the alternative procedure. The fact that however, if the circumstances described corporations would apply to that a partner may utilize the alternative in § 301.6225–2(d)(2)(vii)(C) are met. adjustment, regardless of the rate that procedure without making a payment would apply to the C corporation based does not, however, allow the partner v. Rate Modification on the amount of that C corporation’s access to a refund through the Under § 301.6225–2(d)(4), a taxable income. The comment suggested alternative procedure. partnership may request modification a rule where the rate applied to the The alternative procedure as based on a lower rate of tax for the recharacterized income allocable to the described in section 6225(c)(2)(B) does reviewed year with respect to C corporation would be 0 percent not provide that the partners may obtain adjustments that are allocable to a because there is no reduced capital

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gains rate for C corporations. Zero is understand better what the corporation Revisions, the IRS recognizes that there lower than the highest rate applicable to took into account on its original return. may be concerns about the burden a fair a C corporation and as a result is not Proposed § 301.6225–2(b)(3) provided market value analysis might create on permitted by statute. Similarly, for the rules for calculating an imputed both the partnership and the IRS. The individual in the comment’s suggestion, underpayment in the case of a rate Treasury Department and the IRS for taxable year 2018 the highest rate is modification. The first step in considered using the authority under 37 percent and the highest rate for determining an imputed underpayment section 6225(c)(6) to expand capital gains is 20 percent. The in the case of a rate modification is to modification to use section 704(b) basis, difference between these two rates is 17 determine each relevant partner’s but the recommendation to use section percent, which is lower than the highest distributive share of the partnership 704(b) basis is also flawed. Not all rate for capital gains for an individual adjustments based on how each partnerships have section 704(b) basis and as a result not permitted by statute. adjustment subject to rate modification numbers to which the partnership and Accordingly, the comment was not would be properly allocated under the IRS could refer for modification adopted. section 702 to such relevant partner in purposes. Accordingly, the section In contrast, the amended return (or the reviewed year. Proposed 704(b) basis alternative would only be the alternative procedure to filing § 301.6225–2(b)(3)(iii)(A). In the case of available to certain partnerships, and amended returns) allows a partner to an adjusted item that was specially the IRS would prefer to provide an take into account the partner’s share of allocated to a partner or group of alternative option to the fair market adjusted items and apply the specific partners, however, each relevant value analysis that would be available to tax rate that applies to the partner’s partner’s distributive share is all partnerships. In addition, there is amount of taxable income. When taking determined based on the amount of net concern that some partners may not into account her share of the gain or loss to the partner that would have accurate records for section 704(b) adjustments, which includes both the have resulted if the partnership had sold basis. As discussed later in this section adjustment increasing ordinary income all of its assets at their fair market value of the preamble, the Treasury and the adjustment decreasing capital as of the close of the reviewed year. Department and the IRS did exercise the gain, the partner is able to offset Proposed § 301.6225–2(b)(3)(iv). authority under section 6225(c)(6) to One comment suggested that the additional partnership income with any provide an option for special allocation requirement to determine the partner’s permissible deductions. For example, a rate modification that would apply to all distributive share based on a partner may utilize the increase in partnerships. hypothetical sale of all partnership The comment suggested, as an capital loss to offset the capital gain that assets at fair market value as of the close alternative to defining fair market value, was originally reported and of the reviewed year is administratively that the regulations permit the subsequently recharacterized, thereby burdensome and difficult for partnership to request that adjustments reducing the partner’s tax on capital partnerships to apply many years after subject to the special allocation rule gains to potentially zero and paying tax the calculation date. The comment also under § 301.6225–2(b)(3)(iv) be placed on her share of ordinary income at the suggested that the lack of a definition in a specific imputed underpayment partner’s specific effective tax rate. for fair market value in the statute and separate from other adjustments. The To the extent the comment was in the regulations will generate comment suggested this process would suggesting that the Treasury Department significant disputes between the IRS allow for the adjustments to be allocated and IRS exercise its discretionary and partnerships. In order to simplify solely to the affected relevant partners authority under section 6225(c)(6), the the administration of this rule, the in the appropriate manner, and also Treasury Department and IRS decline to comment recommended that the recommended that the request to do so because adopting such a rule regulations should define fair market designate a specific imputed would present administrability concerns value solely for purposes of this rule as underpayment in this context be for the IRS. For example, the corporate a more easily determined amount, such considered separately from other partner described by the comment may as using section 704(b) basis. This modification requests. or may not have paid tax on capital gain comment was not adopted, although the The process suggested by the on the corporate partner’s original final regulations do provide an comment was arguably permissible return; there may have been offsetting alternative method for determining a under former proposed § 301.6225– capital losses. The most efficient way partner’s distributive share in the case 2(d)(6). Under former proposed from a tax administration perspective of special allocations as described later § 301.6225–2(d)(6), a partnership was for the partnership and the corporate in this section of this preamble. permitted to request during partner to demonstrate that the Section 6225(c)(4)(B)(ii) provides if an modification that one or more corporate partner previously paid tax on imputed underpayment is attributable to partnership adjustments taken into the capital gain is the amended return the adjustment of more than one item, account to calculate one general or process (or the alternative procedure). and any partner’s distributive share of specific imputed underpayment be By filing an amended return, the such items is not the same with respect taken into account to calculate a corporate partner can take into account to all such items, then the portion of the different specific imputed the adjusted amount of both ordinary imputed underpayment to which the underpayment. Former proposed income and capital loss, and assuming lower rate applies with respect to such § 301.6225–1(e)(2)(iii) had defined a those adjustments could offset on the partner shall be determined by reference specific imputed underpayment as an corporate return, the corporate partner to the amount which would have been imputed underpayment with respect to would owe no additional tax and the the partner’s distributive share of net adjustments to an item or items that adjustments taken into account by the gain or loss if the partnership had sold were allocated to one partner or a group corporate partner would be disregarded all of its assets at their fair market value of partners that had the same or similar from the total netted partnership as of the close of the reviewed year of characteristics or that participated in the adjustment. See § 301.6225–2(b)(2). An the partnership. As discussed later in same or similar transaction. In the case amended return, or an alternative this section of this Summary of of a special allocation to a group of procedure submission, allows the IRS to Comments and Explanation of partners, however, the partners may not

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necessarily share the same distributive shares. This rule provides that hold an indirect interest in the characteristics or have participated in an alternative to the fair market value partnership under examination. the same transaction. Accordingly under analysis for partnerships and partners In the August 2018 NPRM, the former proposed § 301.6225–1(e)(2)(iii), which comments suggested, and the Treasury Department and the IRS used certain specially allocated items may Treasury Department and the IRS agree, the authority under section 6225(c)(6) to have been eligible for placement in a may be too difficult or costly. The rule, create a second type of partner, a specific imputed underpayment while however, does not remove the ability of qualified relevant partner, that was others may not. a partnership to request modification eligible for modification under This discrepancy was addressed by based on section 6225(c)(4)(B)(ii). The § 301.6225–2(d)(5). A qualified relevant the revisions to proposed § 301.6225– final regulations also clarify that the partner is a relevant partner that meets 1(g)(2)(iii) in the August 2018 NPRM. distributive share referenced in section the requirements of a specified partner Proposed § 301.6225–1(g)(2)(iii) 6225(c)(4)(B)(i) is the distributive share for each year starting with the first provided that the IRS may designate a as determined in the NOPPA, and if no affected year through the last year for specific imputed underpayment with determination regarding that which a return was filed by the respect to adjustments to items that distributive share was made in the partnership. To address the were allocated to a partner or group of NOPPA, the rules of subchapter K of recommendation made by the comment partners that had the same or similar chapter 1 of the Code (subchapter K). to accommodate indirect partners, the characteristics, that participated in the The same comment also final regulations provide that an indirect same or similar transaction, ‘‘or on such recommended that the regulations partner may also be a qualified relevant other basis as the IRS determines clarify that if the IRS requires a partner, and therefore be eligible for properly reflects the facts and partnership to make the deemed sale modification under § 301.6225–2(d)(5), circumstances.’’ A partnership may calculation envisioned in proposed if the indirect partner is an individual, request designation of a specific § 301.6225–2(b)(3)(iv), the regulations estate, trust, closely held C corporation, or personal service corporation and has imputed underpayment during the provide that such action is not examination or during modification. See a specified passive activity loss with considered a revaluation for purposes of § 301.6225–2(d)(6). Accordingly, respect to the publicly traded section 704. This comment was because the process suggested by the partnership. adopted. A sentence has been added to comment is contemplated by the Former proposed § 301.6225–2(d)(5) the final regulations under § 301.6225– proposed regulations, no change was had provided that modification for 2(b)(3)(iv) to make clear that any made in the final regulations to certain passive losses of publicly traded calculation by the partnership that is response to this comment. partnerships applied equally with With respect to the comment’s request necessary for purposes of complying respect to a publicly traded partnership for an alternative to fair market value, with the rule under § 301.6225– subject to a proceeding under the the Treasury Department and the IRS 2(b)(3)(iv) is not a revaluation for centralized partnership audit regime recognize that a determination of fair purposes of section 704. and where a portion of the imputed market value may present challenges for vi. Certain Passive Losses of Publicly underpayment was attributable to a taxpayers and the IRS. For instance, Traded Partnerships publicly traded partnership that is a obtaining a fair market value analysis partnership-partner. Proposed may require the hiring of experts by the Proposed § 301.6225–2(d)(5) provided § 301.6225–2(d)(5) was revised in the taxpayer, thereby increasing the costs of rules for modification regarding certain August 2018 NPRM to provide that modification. Depending on the type of passive activity losses of publicly traded § 301.6225–2(d)(5) applies in the case of assets or the amount at issue, the IRS partnerships. Pursuant to proposed a publicly traded partnership that is a may need to employ its own experts to § 301.6225–2(d)(5), in the case of a relevant partner. The final regulations ensure that the taxpayer’s analysis is publicly traded partnership that is a provide that modification under correct. Recognizing these costs and relevant partner, an imputed § 301.6225–2(d)(5) applies only to the administrative burdens, the Treasury underpayment is determined without publicly traded partnership requesting Department and the IRS have exercised regard to the portion of any adjustment modification under § 301.6225–2 (that the authority under section 6225(c)(6) to the partnership demonstrates would be is, the partnership under examination). ‘‘provide for additional procedures to reduced by a specified passive activity This change makes the modification modify imputed underpayment amounts loss which is allocable to a ‘‘specified procedures under § 301.6225–2(d)(5) on the basis of such other factors as the partner.’’ Proposed § 301.6225– more administrable for the IRS because Secretary determines are necessary or 2(d)(5)(iii) defined specified partner as a only the partnership under examination appropriate’’ to carry out the purposes person that is a partner of a publicly may request modification under of section 6225(c). Pursuant to that traded partnership; that is an § 301.6225–2(d)(5). In this way, the authority, the final regulations under individual, estate, trust, closely held C change also makes modification § 301.6225–2(b)(3)(iv) allow a corporation, or personal service § 301.6225–2(d)(5) consistent with other partnership requesting rate corporation; and that has a specific types of modification. Because the final modifications in the case of special passive activity loss with respect to the regulations accommodate certain allocations to determine the distributive publicly traded partnership. One indirect partners of the publicly traded share for all adjustments to which the comment recommended that the partnership requesting modification, lower rate applies with respect to all definition of specified partner include this change should not substantially partners based on the test under either partnerships to accommodate persons affect the number of publicly traded section 6225(c)(4)(B)(i) or section that hold an indirect interest in a lower- partnerships and partners eligible for 6225(c)(4)(B)(ii). tier partnership that is under modification under § 301.6225–2(d)(5). The rule under the final regulations examination through one or more Another comment observed that allows partnerships and partners to upper-tier partnerships. The final section 6225(c)(5) required certain request modification based on what they regulations do not adopt this definition actions and calculations based on determine is the most appropriate of specified partner, but the final information that would not be known method to measure partners’ regulations do accommodate persons until the adjustment year. Pursuant to

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section 6225(d), the adjustment year in the most recent return. For example, the which modification is approved or the case of an administrative proceeding return filed prior to the issuance of the denied, the modification determination is the year in which a case is fully NOPPA could have preceded the must be made prior to the issuance of adjudicated under section 6234, or if no NOPPA by several months. After the the FPA. petition is filed under section 6234, NOPPA was issued and at the time the The comment stated that any post- when the FPA is mailed. A modification partnership is considering submitting a FPA modification request would cause request must be submitted within 270 modification request, the partnership the FPA and a denial of the days of the issuance of the NOPPA, could have filed the next year’s return modification request to be subject to which must be mailed before the FPA. reflecting the next year’s passive activity judicial review separately. This See section 6231(b)(2)(A). As a result of losses, which might differ from the statement is inaccurate. If the these rules, section 6225(c)(5) does not losses reported on the return filed prior partnership seeks judicial review under operate properly in the case of an to the issuance of the NOPPA. The section 6234 with respect to an FPA, in administrative proceeding. When the Treasury Department and the IRS have the absence of a showing of fraud, partnership submits modification under an interest in ensuring that the most malfeasance, or misrepresentation of a section 6225(c)(5), the partnership current tax amounts are used in material fact, the IRS is precluded from cannot know what the adjustment year determining whether a modification mailing another FPA to such is, much less what tax effects there request under § 301.6225–2(d)(5) should partnership with respect to such taxable might be in that year. The only be approved. Given this interest, the year. Section 6231(c). Accordingly, if circumstance in which section rule in the final regulations uses the the IRS issued an FPA within the time 6225(c)(5) operates properly with most recently filed return, rather than frames discussed earlier in section respect to the adjustment year is if an the comment’s suggestion to use the 3.B.iii. regarding amended return AAR has been issued. This is because return filed before the issuance of the payments, and the partnership seeks under section 6225(d) the adjustment NOPPA. judicial review of that FPA, the IRS year in the case of an AAR is the year In addition, the rule suggested by the would be prevented from issuing a later in which the AAR is filed. comment would require the partnership FPA dealing with the modification To address these incongruences, the to know what adjustments would be request. If the partnership submitted its comment recommended that the included in the NOPPA and make modification request after the regulations allow a publicly traded adjustments on its return to take such partnership had already received partnership to reduce an imputed adjustments into account, prior to the judicial review with respect to the underpayment based on a net decrease issuance of the NOPPA. If the adjustments in the FPA, the IRS in the passive activity loss allocable to adjustments in the NOPPA somehow generally could not mail an additional a specified partner in the reviewed year differed from the adjustments the FPA approving or denying the to the extent the partnership takes such partnership took into account on its modification request, and the loss into account in the taxable year return, the modification might be partnership would have no immediately preceding the year in denied because the partnership failed to determination concerning its which the NOPPA is issued. This take those adjustments into account. modification request which it could comment was not adopted, but the The comment’s suggestion, therefore, challenge in court under section 6234. concerns it raises were addressed in the has its own timing issues. The final Accordingly, this comment was not August 2018 NPRM. In the August 2018 regulations provide more flexibility for adopted. NPRM, the Treasury Department and the partnership to reflect the The same comment requested that the the IRS used the authority under section information known as of the last return IRS include the denial of any 6225(c)(6) to provide that the filed without requiring the partnership modification request in the FPA to partnership may request modification to predict what may or may not be in ensure that any Tax Court proceeding under § 301.6225–2(d)(5) with respect to the NOPPA and on which day the will also address the dispute regarding the adjustment year or the most recent NOPPA will be issued. Accordingly, the requested modification. This year for which the publicly traded although the final regulations did not comment was not adopted. Whether and partnership has filed a return under adopt the comment per se, the final how disputes regarding modification section 6031. regulations adopted an alternative requests are subject to judicial review by The Treasury Department and the IRS solution to the problem identified by the a court is not within the purview of the acknowledge that the most recent year comment. Treasury Department’s or the IRS’s for which a return was filed may not The same comment recommended regulatory authority. However, to assist always be the year immediately before that the final regulations allow a with any potential judicial review of the issuance of the NOPPA, as in the publicly traded partnership to request modification, the IRS plans to use the rule suggested by the comment. modification of the imputed FPA as the method for approving or However, using the taxable year for the underpayment after the end of the denying modification. The final most recently filed return allows the adjustment year. Specifically, the regulations do not specify, however, publicly traded partnership to refer to comment recommended that the final what is required to be included in the whatever return is the most recently regulations require the modification FPA for purposes of approving or filed, even if that return was filed request to be submitted within 74 days denying modification. The absence of a shortly after the issuance of the NOPPA. of the end of the adjustment year, which regulatory rule in this regard provides This flexibility allows the partnership to roughly aligns with the original due the IRS flexibility to allow for the take into account the information date of the partnership tax return. The differing circumstances of each known as of the most recent tax year. If procedure recommended by the administrative proceeding and varying the rule were to require the publicly comment is not administrable for the types of modification requests. traded partnership to take into account IRS for the same reasons discussed The final regulations in § 301.6225– information from a return filed before earlier in section 3.B.iii. regarding 2(d)(5) describe the requirements for the issuance of the NOPPA, as suggested accepting amended return payments modification by publicly traded by the comment, the return filed before after the issuance of the FPA. Because partnerships under section 6225(c)(5). the issuance of the NOPPA might not be the FPA is the mechanism through This section does not require the

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partnership requesting modification to return. The final regulations do not examination prior to the mailing of the provide any particular information specify the manner in which NOPPA. Therefore, all issues with about partners to the IRS, but the information must be reported under respect to the adjustments will generally partnership must meet the general § 301.6225–2(d)(5)(v). Rather, the be resolved at the administrative level requirement to provide all information regulations defer the manner of prior to the mailing of the NOPPA and necessary to approve the modification reporting to forms and instructions. This the start of the 270-day modification as described in § 301.6225–2(c)(2). provides flexibility to the IRS to gain period. Because a request for Specifically, § 301.6225–2(c)(2)(i) experience with the forms it intends to modification under § 301.6225–2(d)(7) provides that the IRS may set forth in develop for purposes of assisting will not be submitted until after the forms, instructions, and other guidance partnerships in complying with the NOPPA has been mailed, the the information necessary to request reporting requirements of § 301.6225– partnership and its QIE partners should modification. One comment requested 2(d)(5)(v) and to change those forms in know with certainty what adjustments that the partnership be able to provide response to taxpayer feedback, if are agreed and which are unagreed at summary information with respect to necessary, without needing to amend the time of the modification request. modification under § 301.6225–2(d)(5). the regulations. This timing will allow the partnership The comment specifically suggested that In light of the change to allow certain and its QIE partners to evaluate the best the regulations provide that a indirect partners to utilize modification method for modification and to partnership can substantiate the under § 301.6225–2(d)(5), the final determine whether modification under availability of specified passive activity regulations under § 301.6225–2(d)(5)(v) § 301.6225–2(d)(7) is appropriate. losses by providing summary schedules provide that the IRS may require Accordingly, a rule requiring the reflecting the specific allocations to reporting to an indirect partner that is granting of extensions of the 270-day each specified partner of the partnership a qualified relevant partner through period as a matter of course is not from the year such partner purchased forms, instructions, or other guidance. necessary. units through the year the partnership This rule allows the IRS flexibility to Moreover, whether an extension of receives the FPA. evaluate and adapt reporting the modification period is appropriate is This comment was received in requirements concerning indirect a determination best made on the facts response to the June 2017 NPRM, prior partners as the IRS and partnerships and circumstances of a particular case. to the addition of the definition of gain more experience with the A rule requiring automatic granting of qualified relevant partner. The centralized partnership audit regime. extensions would deprive the IRS of the definition of qualified relevant partner ability to evaluation an extension vii. Modification Relating to Qualified allows partners to be eligible for request based on the facts and Investment Entities modification under § 301.6225–2(d)(5) circumstances. Therefore, the final provided they are partners through the Proposed § 301.6225–2(d)(7) provided regulations do not require granting year for which the most recent that a partnership may request a extensions of the 270-day period as a partnership was filed. For purposes of modification of an imputed matter of course. Lastly, the regulations the comment, however, the Treasury underpayment based on deficiency provide the IRS with the authority to Department and the IRS view this dividends distributed as described in grant an extension of the 270-day period comment as suggesting that the section 860(f) by a relevant partner that when warranted, which also protects partnership would provide such is a qualified investment entity (QIE) the partnership in cases that it may be information for whatever years are under section 860(b). Under § 301.6225– initially unclear whether modification relevant for the modification. 2(c)(3)(i), the partnership must provide under § 301.6225–2(d)(7) is appropriate. The final regulations do not specify all information required to request Another comment suggested that the what specific information is required for modification (including modification for regulations require payment of a modification under § 301.6225–2(d)(5). deficiency dividends paid by a QIE deficiency dividend no later than 60 Therefore, the regulations do not partner) on or before 270 days after the days after the date the partnership address whether summary schedules issuance of the NOPPA. A partnership adjustments are finally determined, would be appropriate. The IRS intends may request an extension of this 270- rather than after the NOPPA is mailed to issue forms and instructions for day period, subject to the consent of the during the 270-day modification period. modification procedures which will IRS. Section 301.6225–2(c)(3)(ii). Another comment recommended that provide additional information on what Several comments suggested that it is the regulations provide that the will be required for modification not ideal for a QIE partner to pay a allowance of a deficiency dividend be procedures under § 301.6225–2(d)(5). deficiency dividend with respect to an agreed to in advance of a NOPPA, but Section 301.6225–2(d)(5)(v) requires amount or an adjustment that may not in the event of a challenge to the that the partnership report, in be final. The comments were underlying substantive adjustment in accordance with forms, instructions, specifically concerned that issues may IRS Appeals or in court, the allowance and other guidance prescribed by the be unresolved during the 270-day does not become effective until final IRS, to each specified partner or period after the issuance of the NOPPA resolution of the underlying challenge. qualified relevant partner the amount of because of possible review by IRS The final regulations do not adopt these the reduction in suspended passive loss Appeals. The comments recommended suggestions. carryovers. One comment suggested that that the IRS grant extensions of the 270- First, as discussed earlier in this the easiest way to do so is to incorporate day period under § 301.6225–2(c)(3)(i) section of this preamble, the IRS such reporting into the Schedules K–1 as a matter of course until all relevant Appeals process that the IRS intends to distributed to such partner at the end of issues concerning the adjustments have implement will already have the adjustment year. This comment was become final. determined which substantive received in response to the June 2017 The IRS plans to adopt procedures adjustments are agreed to prior to the NPRM. Therefore, it could not have under which the partnership will have issuance of the NOPPA. As a result, the taken into account the rule from the an opportunity to resolve with IRS most likely avenue for a substantive August 2018 NPRM that allowed for use Appeals any issues with respect to the challenge after modification will be in of the year of the most recently filed adjustments made during the court and not with IRS Appeals.

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Second, pursuant to section 6225(c)(7) expressed concern that some partners modifications and modification for a tax and § 301.6225–2(c)(3)(i), everything might not want to negotiate the details exemption based on foreign status be required to submitted with respect to a of their tax return through the verified using an expanded version of modification request must be provided partnership representative and the existing Forms W–8 and W–9. to the IRS within 270 days after the recommended that the regulations Former proposed § 301.6225–2(d)(3) mailing of the NOPPA. The 270-day outline procedures for partners to work provided rules regarding modifications period is designed to ensure a timely directly with the IRS to enter into with respect to adjustments allocable to resolution of the audit while also closing agreements as part of the partners that would not owe tax as a providing the partnership enough of an partnership audit. Although the IRS result of their status as a tax-exempt opportunity to modify an imputed may, pursuant to § 301.6223–2(d)(1), entity. Proposed § 301.6225–2(d)(3)(ii) underpayment reflected in a NOPPA. A allow a person that is not the defined tax-exempt entity to mean a rule allowing modifications after that partnership representative to participate person or entity defined in section 270-day period expires would in the examination of the partnership, 168(h)(2)(A), (C), or (D). A foreign undermine those goals. the IRS is not required to do so. The person or entity as defined in section Third, allowing modifications after centralized partnership audit regime is 168(h)(2)(C) includes a foreign the adjustments are finally determined designed to provide for a single, unified government or foreign organization. precludes the IRS from approving proceeding in which the IRS works Accordingly, to the extent an modifications in the FPA. As discussed solely with the partnership adjustment is allocable to a foreign in section 3.B.ii of this preamble, the representative who has the sole government or foreign organization, the IRS plans to adopt procedures under authority to bind the partnership and all partnership may request modification which it will approve or deny each its partners. Developing a regulatory with respect to such adjustment modification request in the FPA. procedure that would allow a single provided the requirements of Accordingly, the regulations do not partner to work directly with the IRS, § 301.6225–2(c) and (d)(3) are met. permit modifications to be submitted without working in conjunction with Proposed § 301.6225–2(d)(9), added in beyond the 270-day period described in the partnership representative, during the August 2018 NPRM, provided rules § 301.6225–2(c)(3)(i). the partnership examination would for tax treaty modifications. Under One comment recommended that the contravene the regime’s central design. proposed § 301.6225–2(d)(9), a regulations clarify that a partnership’s The partnership representative may partnership may request modification receipt of a NOPPA is not a request that the IRS work directly with with respect to a relevant partner’s ‘‘determination’’ that begins the 90- or a partner on a closing agreement or distributive share of an adjustment to a 120-day period for a QIE partner’s other issues, but it is solely within the partnership-related item if the relevant issuance and claiming of a deficiency IRS’s discretion to allow that. See partner was a foreign person who would dividend deduction under section 860. § 301.6223–2(d)(1). Accordingly, this have qualified, under an income tax Section 860(e)(1)–(4) provides that a comment was not adopted. treaty with the United States, for a ‘‘determination’’ means (1) a court reduction or exemption from tax with decision; (2) a closing agreement; (3) an ix. Requests for Additional respect to such partnership-related item agreement signed by the Secretary and Modifications in the reviewed year, would have by the QIE relating to the QIE liability Section 6225(c)(6) provides that the derived the item (within the meaning of for tax; or (4) a statement by the QIE ‘‘Secretary may by regulations or § 1.894–1(d)) had it been taken into attached to its amendment or guidance provide for additional account properly in the partnership’s supplement to a tax return. A NOPPA procedures to modify imputed reviewed year return, and is not does not fall into any of these four underpayment amounts on the basis of otherwise prevented under the income categories. Accordingly, a NOPPA is not such other factors as the Secretary tax treaty with the United States from a ‘‘determination’’ for purposes of determines are necessary or claiming such reduction or exemption section 860(e). Moreover, § 301.6225– appropriate’’ for the purposes of section with respect to the reviewed year at the 2(d)(7)(ii) requires that the partnership 6225(c). Proposed § 301.6225–2(d)(10) time of the modification request. provide documentation of the QIE provided that a partnership may request No comments were received on the partner’s ‘‘determination’’ described in a modification not otherwise described tax treaty modification rules proposed section 860(e) as part of the in § 301.6225–2(d), and the IRS will in the August 2018 NPRM. Proposed partnership’s request for modification. determine whether such modification is § 301.6225–2(d)(9) is retained and This rule makes clear that the accurate and appropriate. Additional simplified in the final regulations, with determination in this context is the types of modifications and the no change in substance. Accordingly, a determination with respect to the QIE documentation necessary to substantiate treaty modification is only available to partner, which does not, by definition, such modifications may be set forth in the extent the relevant partner would include the NOPPA mailed to the forms, instructions, or other guidance have qualified for the treaty benefit at partnership. Accordingly, because prescribed by the IRS. issue, whether a rate reduction or section 860(e), when read together with Several comments recommended that exemption from tax, had the item been proposed § 301.6225–2(c)(7)(ii), the Treasury Department and the IRS taken into account by the partner in the addresses the comment’s exercise the authority under section reviewed year. In general, that means a recommendation, the comment was not 6225(c)(6) to expand the available types foreign partner may submit a treaty adopted. of modifications under proposed modification only if the partner was, for § 301.6225–2(d). One comment the reviewed year, a treaty resident; viii. Closing Agreement Modification recommended additional modifications would have derived the item of income Proposed § 301.6225–2(d)(8) provided related to foreign partners, including a through the partnership, or tiers of that a partnership may request tax exemption based on section 892 and partnerships, if applicable, under the modification based on a closing a reduction in taxes based on eligibility tax laws of its country of residence; agreement between the IRS and the for reduced rates of withholding under would have been the beneficial owner of partnership or between the IRS and a a tax treaty. The comment further the item of income (not a nominee or relevant partner, or both. One comment recommended that these types of conduit); would have satisfied the

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limitation on benefits article under the One comment suggested that, to the These comments were received in treaty, if any; and met any other specific extent an adjustment amount and the response to the June 2017 NPRM. The requirement for claiming the benefit imputed underpayment with respect to August 2018 NPRM provided rules under the treaty, such as a stock that adjustment amount have already relating to the alternative procedure and ownership threshold in the case of a been reported and tax paid, also allowed for amended return claim for a reduced rate of tax on U.S. modifications should be permitted with modification without regard to sections source dividends. respect to the tax amount paid and not 6501 and 6511. These additions in the The final regulations do not address, be limited only to taxes paid in August 2018 NPRM allow for the types however, which form will be used for connection with an amended return. of modifications the comment was tax treaty modification, or for any type The comment offered two examples recommending. For example, under of modification. Prescribing the specific which might result in an imputed amended return modification as revised form used for a specific type of underpayment being determined on tax in the August 2018 NRPM, a partner modification in the regulations is that had already been paid. The first files amended returns for the first generally not ideal for either taxpayers example would occur if partners file tax affected year and other years to the or the IRS. The IRS may determine in returns with inconsistent positions extent tax attributes in those years are the future a different form is more under section 6222 that reflect the affected by taking the adjustments into appropriate or the form number or name income being adjusted in the account. Whether the partner pays may require revision. Having the examination. The second example additional amounts, demonstrates that flexibility to prescribe the form without presented by the comment is the on net there is no tax due, or is entitled needing to change the regulations saves situation in which two or more people to a net refund, provided the partner has government resources and allows for may be deemed by the IRS to have otherwise complied with the expedited guidance to taxpayers. formed a partnership when they have modification requirements, the imputed Another comment expressed concern individually reported the income being underpayment will be adjusted to that the determination of the imputed ascribed to the deemed partnership. remove that partner’s share of the underpayment with respect to This comment was adopted. The final adjustments if the IRS approves the adjustments to CFTEs could result in an regulations under § 301.6225–2(d)(2)(ii) modification. Accordingly, the final overpayment of taxes by partners under allow a partnership to satisfy the regulations do not adopt these the centralized partnership audit regime requirements of amended return comments because the final regulations to the extent that one or more partners modification by demonstrating that a provide other methods for would be eligible to take an additional partner previously took into account accomplishing the rules recommended foreign tax credit (FTC) as a result of such partnership adjustments and their by the comments. any adjustments made following the effect on tax attributes for all relevant One comment recommended that the conclusion of an audit. The comment years and made any necessary final regulations expand modification recommended that taxpayers should be payments. permitted to claim FTCs for which they Similarly, one comment procedures to allow modification based are eligible, provided that the taxpayer recommended that modification provide on closing agreements by and amongst can provide sufficient evidence to the for an alternative to closing agreements the partnership and the relevant IRS when claiming the credit. This that would allow the partnership to partners entered into in the course of a comment was not adopted. demonstrate that a partner’s share of an proceeding with the Competent The modification procedures provide adjustment was partially or fully Authority office, in particular to adequate opportunity for a partner to reversed and so the imputed facilitate the implementation of any take advantage of any new FTCs. For underpayment should therefore be mutual agreement by the IRS in a example, the partners may use amended reduced to give credit for taxes paid in manner that is consistent with the return modification or the alternative a later year. For instance, the purpose of tax treaties to avoid double procedure to take into account all partnership could demonstrate that a taxation. This modification might adjustments that might affect specific former partner would have paid tax on include mutual agreement procedures partners, including any new FTCs. capital gain on its partnership interest but may also include requests for Accordingly, no changes were made to and that amount of gain would have, assistance in the context of partner-level the regulations in response to this economically included the amount of an foreign tax credits and protective comment. adjustment. The partnership would claims. The comment also Two comments requested that the then, pursuant to this recommendation, recommended that the final regulations Treasury Department and the IRS use be permitted to demonstrate that the permit multiple closing agreements and the authority under section 6225(c)(6) to imputed underpayment should be provide procedures for cooperation expand modification and to authorize reduced by a refund in an intervening between the Competent Authority and an ‘‘Early Decision’’ procedure for year. partnership examination teams. This pushing out audit adjustments in tiered The same comment also comment was received in response to structures in order to address the recommended that the final regulations the June 2017 NPRM. The August 2018 administrative concerns of the IRS adopt an additional modification type NPRM provided for treaty modifications related to a tiered push out. This that would allow the partnership to that were not in the former proposed comment, which was submitted prior to demonstrate the impact of adjustments regulations, and the final regulations the amendments by the TTCA to section on one or more of its partners, maintain the added treaty modification 6226(b) and the August 2018 NPRM, specifically with respect to interest procedure. The final regulations do not was not adopted. Under the rule expense and foreign taxes paid. The adopt any new modifications that were proposed in the August 2018 NPRM, comment recommended that the not previously proposed in the August adjustments may be pushed out beyond partnership be able to demonstrate that 2018 NPRM, but maintain the the first tier of partners. See proposed the partner’s reporting of these items modifications based on closing § 301.6226–3(e) and section 4.C.iii. of was not as beneficial as assumed in the agreements and treaties. Nothing in the this preamble for further discussion of calculation of the imputed regulations limits the closing the tiered push out rules. underpayment. agreements in a way that would prevent

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a closing agreement, or multiple closing partner-level defenses as the IRS gains One comment recommended that the agreements, entered into during the more familiarity with the centralized rules be clarified regarding whether Competent Authority process from partnership audit regime. netting would be allowed with respect being considered in the modification to adjustments that do not result in an D. Adjustments That Do Not Result in process. imputed underpayment in multi-year an Imputed Underpayment C. Defenses to Penalties audits. The comment asks about a Proposed § 301.6225–3 addressed the particular example: If an audit of 2018 Proposed § 301.6225–2(d)(2)(viii) treatment of adjustments that do not results in an imputed underpayment in provided that a relevant partner may result in an imputed underpayment. 2018 and an overpayment in 2019 in raise a partner-level defense (as Proposed § 301.6225–3 provided that a regard to adjustment items, the described in § 301.6226–3(d)(3)) by first net negative adjustment resulting from a proposed regulations would not permit paying the penalty, addition to tax, or reallocation adjustment, which does not those amounts to be netted. As additional amount with the amended result in an imputed underpayment discussed in section 3.A. of this return filed under § 301.6225–2(d)(2) pursuant to § 301.6225–1(f), is taken preamble, partnership adjustments with and then filing a claim for refund in into account by the partnership in the respect to different reviewed years are accordance with forms, instructions and adjustment year as a separately stated not netted. If a multi-reviewed-year other guidance. One comment item or a non-separately stated item, as audit that resulted in an imputed recommended allowing the audited required by section 702 and is allocated underpayment with respect to one partnership to submit partner-level to adjustment year partners who are also reviewed year and adjustments that do defenses for both direct and indirect reviewed year partners with respect to not result in an imputed underpayment partners as part of the modification whom the amount was reallocated. with respect to a different reviewed year process. According to the comment, a One comment expressed concerns both had the same adjustment year, then with the application of proposed review by the IRS prior to requiring the expense associated with the § 301.6225–3(b)(4) to publicly traded payment of the proposed penalties imputed underpayment paid in the partnerships. According to this would permit an early determination adjustment year is taken into account by comment, the public trading of units of regarding the validity of any partner- the partnership in the adjustment year publicly traded partnerships depends level defense and reduce economic and and the adjustments that do not result on their fungibility, which requires that administrative burdens on taxpayers. in an imputed underpayment would all items affecting the partners’ section The comment suggested that because also be taken into account on the penalties can represent a large dollar 704(b) capital accounts be allocated pro adjustment year tax return. Expenses amount, the requirement that taxpayers rata. The comment suggested that an related to payment of an imputed must provide advance payment of allocation under proposed § 301.6225– underpayment are nondeductible under penalties, even in cases where they have 3(b)(4) could force an adjustment year section 6241(4). As a result, such items a valid penalty defense, can create a allocation to less than all of the public would be taken into account according significant economic burden on unit holders, potentially causing the to subchapter K principles in the partners. This comment was not units to be non-fungible. This comment adjustment year and the extent to which adopted. was not adopted at this time, but the Due to the limited time the IRS has to final regulations provide that the IRS any items net on the partnership or review modification requests, the may provide exceptions to the rule partners’ returns would depend on the Treasury Department and IRS have under § 301.6225–3(b)(4) pursuant to particular adjustments and the facts and determined that reviewing penalty forms, instructions, and other guidance circumstances of the partnership and defenses for specific partners in prescribed by the IRS. As the IRS gains partners. Instead, the partnership may addition to reviewing the amounts taken more experience with the centralized also take advantage of modification into account on amended returns or in partnership audit regime, the IRS may procedures and the election under the alternative procedure submissions is determine to create an exception section 6226 to allow partnership unadministrable in the time frame through forms, instructions, or other adjustments to be taken into account allowed. The core aspect of the guidance if doing so would benefit directly by the partners that may, modification procedures is to exclude taxpayers while fulfilling the depending on the facts and partnership adjustments from the requirements of the statute and circumstances, allow for different imputed underpayment calculation. remaining administrable for the IRS. netting results at the partner level. Whether a specific partner is then Having the flexibility to create such an Lastly, § 301.6225–3(b)(7) was added entitled to a refund of penalties paid exception through forms, instructions, to provide that partners that previously after taking the adjustments into and other guidance preserves took into account an adjustment that account is best determined outside the government resources and expedites the does not result in an imputed modification procedures and not subject process for the IRS to address taxpayer underpayment before a notice of to the time constraints of section needs and for taxpayers to be aware of administrative proceeding was mailed 6225(c)(7) and § 301.6225–2(c). The changes in IRS procedures. by the IRS or before an administrative final regulations, therefore, maintain the One comment recommended that the adjustment request was filed by the requirement that a partner must first pay regulations provide examples partnership do not take into account a any penalty due with the amended demonstrating the proper application of second time the same adjustment that return filed during modification and proposed § 301.6225–3(b)(4). The final does not result in an imputed then afterward file a claim for refund of regulations add two such examples underpayment. This rule addresses the penalty in order to raise a partner- under § 301.6225–3(d). One example situations where a partner took a level defense. However, to address the demonstrates the application of the rule position inconsistent with the concerns raised by the comment, the under § 301.6225–3(b)(4) in the context partnership return as filed and as a final regulations under § 301.6225– of a recharacterization adjustment the result of that inconsistent position 2(d)(2)(viii) give the IRS flexibility to other example demonstrates application previously took into account items that develop through future guidance of the rule in the context of a were later determined by the IRS (or by alternative procedures for raising reallocation adjustment. the partnership in an AAR) to be

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adjustments that do not result in an or upon request, an extension of the 45- (audited partnership) from the imputed underpayment, such as day period. These comments were not requirement to pay the imputed additional losses or deductions. The adopted. underpayment to which the election rule is designed to ensure that such The 45-day period for making an relates and shifts the collection of any partners do not take the same items into election under section 6226 is chapter 1 tax resulting from the account again in the adjustment year. established by statute. Pursuant to partnership adjustment to the partners section 6226(a)(1), section 6225 shall of the partnership. In light of the 4. Election for Alternative to Payment of not apply to an imputed underpayment collection nature of the push out regime, the Imputed Underpayment if the partnership ‘‘not later than 45 whether a revocation of a push out Twenty-two comments were received days after the date of the notice of final election should be granted largely concerning section 6226, the election for partnership adjustment’’ elects the depends on the facts and circumstances. an alternative to payment of the application of section 6226 with respect For example, a revocation may benefit imputed underpayment. This section of to such imputed underpayment and the IRS, the partnership, and its partners this Summary of Comments and furnishes statements to its partners for in the case of an agreement by the Explanation of Revisions addresses the reviewed year under section partnership to pay at the partnership comments concerning the mechanics 6226(a)(2). The partners must then take level in lieu of pushing out the and effect of making an election under into account the adjustments that adjustments to its partners. On the other proposed § 301.6226–1; the statements resulted in that imputed underpayment. hand, a revocation may prejudice the furnished to partners and filed with the Consistent with section 6226(a)(1), IRS and the partners if, for example, the IRS pursuant to proposed § 301.6226–2; proposed § 301.6226–1(c)(3) provided revocation is granted after statements and the rules regarding how that an election under § 301.6226–1 have already been furnished to the adjustments are taken into account by must be filed within 45 days of the date partners. In that case, some partners partners in accordance with proposed the FPA is mailed by the IRS and that may have already paid any resulting tax. § 301.6226–3. Comments concerning the time for filing such an election may If the revocation is significantly basis and tax attribute rules under not be extended. delayed, some partners may be time- proposed § 301.6226–4 will be Nothing in section 6226 provides for barred from filing refund claims. In addressed in future guidance. an exception to the 45-day period turn, any refund claim filed by a partner described in section 6226(a)(1), nor does would require additional processing by A. Mechanics and Effect of Making an section 6226 provide that the 45-day Election Under Section 6226 the IRS, which could become period may be extended by the IRS. administratively burdensome The comments received regarding the Accordingly, comments suggesting that particularly in the case of tiered mechanics and effect of making an the regulations provide that a push out structures. Also, the period to assess the election under section 6226 cover six election may be made later than 45 days imputed underpayment against the general topics: (1) The time for making after the date of the FPA, whether as a partnership may have expired at the the election; (2) revocations of the general rule or as a result of an time of the revocation request. election; (3) making the election when extension, were not adopted. Additionally, the audited partnership there are multiple imputed ii. Revocations of Elections Under may no longer be collectible and, if the underpayments or there is no imputed Section 6226 IRS granted a revocation, the IRS would underpayment; (4) notification by the be required to engage in unnecessary IRS that an election is invalid; (5) One comment suggested that, as an and costly additional collection making the election and filing a petition alternative to delaying or extending the procedures. Requiring consent of the for readjustment under section 6234; 45-day period for making the push out IRS before a revocation takes effect and (6) whether the election should be election, the regulations should provide ensures flexibility to appropriately mandatory. that the IRS will liberally grant address each circumstance and protects revocations of a push out election in partners that may have already received i. Time for Making the Election Under certain circumstances, such as in the Section 6226 pushed out statements. Accordingly, case of a settlement of an imputed comments recommending liberal or Under section 6226(a) and proposed underpayment. Another comment automatic approvals of requests to § 301.6226–1(c)(3), a partnership may suggested that the regulations should revoke push out elections were not make an election under section 6226 provide that the IRS will approve any adopted. (push out election) within 45 days of the request to revoke an election upon date on which the FPA is mailed by the completion of the administrative or iii. Making the Election When There Are IRS. This 45-day period cannot be judicial proceeding. These comments Multiple Imputed Underpayments or extended, and once made, the election were not adopted. When There Is No Imputed may only be revoked with the consent Section 6226(a) provides that an Underpayment of the IRS. See proposed § 301.6226– election under section 6226, once made, Under proposed § 301.6226–1(a), if an 1(c)(1), (3). ‘‘shall be revocable only with the FPA includes more than one imputed Several comments recommended consent of the Secretary.’’ Consistent underpayment (as described in changes to the 45-day period under with section 6226(a), § 301.6226–1(c)(1) proposed § 301.6225–1(g)), a proposed § 301.6226–1(c)(3). Some provides that an election under partnership may make an election under comments suggested that the § 301.6226–1 may only be revoked with § 301.6226–1 with respect to one or partnership should not be required to the consent of the IRS. The requirement more of the imputed underpayments make the push out election until after that a revocation only be made with the identified in the FPA. One comment there is a final determination of the consent of the IRS is mandated by the suggested that the regulations clarify partnership adjustments, either as a statute and is critical to the whether there are any requirements for, result of a defaulted FPA or, if a petition administration of the collection aspect or limitations on, a partnership’s ability is filed, a final court decision. Other of the push out regime. A push out to make a push out election for different comments recommended that the election relieves the partnership that imputed underpayments. Neither the regulations permit, either automatically made the election under section 6226 proposed regulations nor the final

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regulations under § 301.6226–1(a) an AAR for year 3. See 6227(c) and An election under section 6226 may contain any restrictions or limitations § 301.6227–1(b). The modification be invalid for a number of reasons and on a partnership’s ability to make an procedures may also provide a not every case will present a need to election under section 6226 for a mechanism for the partnership and its first communicate with the partnership. particular imputed underpayment partners to benefit from the change to For example, the partnership may make identified in an FPA. For each imputed year 3. For example, the partners may an election, but never furnish underpayment for which the file amended returns (or utilize the statements to its partners. Providing the partnership plans to make a push out alternative procedure to filing amending partnership with a preliminary election, the partnership must satisfy returns) to take into account the determination that the election is the provisions of §§ 301.6226–1 and adjustments to years 1, 2, and 3. See invalid in that case and an additional 301.6226–2, including the requirement § 301.6225–2(d)(2). See also section opportunity to furnish statements would under § 301.6226–1(c)(3)(ii)(D) that the 6225(c)(9) (allowing modification of undermine the 60-day period for election identify the imputed adjustments that do not result in an furnishing statements (see proposed underpayment to which the election imputed underpayment). Additionally, § 301.6226–2(b)), which is designed to relates. Because the regulatory text does nothing in the final regulations prevents support the IRS’s timely collection of not suggest there are any restrictions on the partnership from seeking a closing any additional reporting year tax and making a push out election with respect agreement with the IRS with respect to provide timely information to reviewed to different imputed underpayments, year 3 subject to rules generally year partners regarding any additional the comment seeking further applicable to closing agreements. reporting year tax. In such a case, the clarification on this point was not IRS should have the ability to determine iv. Notification That an Election Under adopted. the election is invalid and to Section 6226 Is Invalid One comment suggested that a immediately assess an imputed partnership should be allowed to make Under proposed § 301.6226–1(c)(1), underpayment without first notifying an election under section 6226 for a an election under § 301.6226–1 is valid the partnership. Accordingly, the taxable year for which there is no until the IRS determines that the comment’s suggestion was not adopted. imputed underpayment, but for which election is invalid. If an election is However, while nothing in the there is a tax effect favorable to the determined by the IRS to be invalid, the regulations requires the IRS to first partnership. The comment described an IRS will notify the partnership and the contact a partnership prior to making a example in which the IRS determines in partnership representative within 30 determination that an election under an examination of year 1 that the days of such determination and provide section 6226 is invalid, the IRS intends partnership should have reported the reasons for the determination. See to develop procedures under which the income originally reported in year 3 § 301.6226–1(d). Former proposed IRS will first contact partnerships prior ratably over years 1, 2, and 3. In the § 301.6226–1(c)(2) had provided that if to determining a push out election is example, the IRS determines an the IRS makes a final determination that invalid in certain cases. Those imputed underpayment with respect to an election under § 301.6226–1 is procedures, if adopted, will be set forth year 1, and the partnership makes a invalid, section 6225 applies with in future sub-regulatory guidance. push out election with respect to that respect to the imputed underpayment as The same comment also suggested imputed underpayment. The comment if the election were never made and the that the partnership should be able to suggested that a push out election partnership must pay the imputed seek review of a decision by the IRS that should be permitted for year 3 as well underpayment. The word ‘‘final’’ was a push out election is invalid in the to correct the perceived anomalous removed from former proposed United States Tax Court. The United result that could occur if the reviewed § 301.6226–1(c)(2) in the August 2018 States Tax Court is a court of limited year partners did not get the benefit of NPRM to clarify that the IRS may jurisdiction. See section 7442. The the decrease in income with respect to determine that an election is invalid, Treasury Department and the IRS do not year 3. and assess and collect the imputed have authority to confer jurisdiction on Pursuant to section 6226(a)(1), the underpayment to which the purported the United States Tax Court. Therefore, partnership may make a push out election related, without first being this comment was not adopted. election ‘‘with respect to an imputed required to make a proposed or initial underpayment.’’ Section 301.6226–1(a) determination of invalidity. This v. Effect of Filing a Petition for echoes the statutory language by clarification was adopted in the final Readjustment Under Section 6226 providing that a partnership may elect regulations under § 301.6226–1(d) Under proposed § 301.6226–1(e) under § 301.6226–1 an alternative to the (formerly proposed § 301.6226–1(c)(2)). (§ 301.6226–1(f) in the final regulations), payment by the partnership of ‘‘an Under § 301.6226–1(d), the IRS may a partnership that has made an election imputed underpayment.’’ Accordingly, determine an election is invalid without under § 301.6226–1 is not precluded to make a push out election under first notifying the partnership or from filing a petition under section section 6226(a)(1) and § 301.6226–1, providing the partnership an 6234(a). Section 6234(a) provides that a there must be at least one imputed opportunity to correct any failures to partnership may file a petition in the underpayment for the taxable year. To satisfy all of the provisions of Tax Court, a United States district court, the extent the comment was suggesting § 301.6226–1 and § 301.6226–2, or the Court of Federal Claims, within an election should be permitted for a including an opportunity to correct 90 days of the date on which an FPA is year in which there is no imputed errors in pursuant to § 301.6226–2(d). mailed under section 6231. A petition underpayment, the comment was not One comment suggested that the under section 6234 may be filed in a adopted. regulations require the IRS to notify the district court or the Court of Federal As the comment observed, the partnership of its intent to determine Claims only if the partnership filing the partnership has other options to make that a push out election is invalid and petition makes a jurisdictional deposit adjustments for year 3. The partnership provide the partnership with an in accordance with section 6234(b). in the example could file an AAR for opportunity to respond prior to making Proposed § 301.6234–1(b) provide that year 3, provided the period described in a final determination that the election is the jurisdictional deposit is the amount section 6227(c) permitted the filing of invalid. This comment was not adopted. of (as of the date of the filing of the

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petition) any imputed underpayment (as 6234(b) and proposed § 301.6234–1(b) is address included for each reviewed year shown on the FPA) and any penalties, addressed in section 9 of this Summary partner in the election under additions to tax, and additional amounts of Comments and Explanation of § 301.6226–1 as the address included in with respect to such imputed Revisions. each statement under § 301.6226–2. underpayment. Accordingly, the final regulations under vi. Elective Nature of Section 6226 One comment stated that the § 301.6226–1(c) clarify that an election proposed regulations provide no One comment suggested that the under § 301.6226–1 must include the explanation as to how or whether the regulations should make the election ‘‘the current or last address of each deposit amount under section 6234(b) under section 6226 mandatory, unless reviewed year partner that is known to may or should be adjusted to reflect a provided for otherwise in the the partnership.’’ push out election under section 6226. partnership agreement, in two The comment recommended the circumstances in order to mitigate a B. Statements Furnished to Partners and regulations should provide a partnership representative’s potential Filed With the IRS mechanism that would enable a conflict of interest and to provide The comments received regarding partnership to file a petition in a district protection to partners that are partners furnishing statements to partners and court or Court of Federal Claims and in the adjustment year but not partners filing the statements with the IRS cover still make an election under section in the reviewed year. The first five general areas: (1) The partners to 6226, without creating the risk of having circumstance is when the partnership whom the statements are furnished; (2) tax on the partnership adjustments paid representative is both a partner in the the timing of when the statements are twice. The comment suggested that one reviewed year and the adjustment year, furnished; (3) reasonable diligence in possible approach might be to reduce and the partnership representative’s identifying correct addresses; (4) the the deposit amount by the amount that interest during the adjustment year is effect of failing to properly furnish would be reported by partners that less than it was in the reviewed year. statements; and (5) the content of the receive push out statements. The The second circumstance is when the statements. aggregate partnership interest of any comment suggested that another i. Partners to Whom the Statements Are adjustment year partner or group of possible approach might be to ensure Furnished that there is a clear mechanism for the partners holding a 20 percent or greater partnership to obtain a refund of the interest in the partnership is 20 percent Section 6226(a)(2) requires a jurisdictional deposit before any or greater than the interest held by the partnership to furnish statements to amounts are paid under the push out by same partner or group of partners in the ‘‘each partner of the partnership for the partners. reviewed year. Because the approach reviewed year.’’ Consistent with the Nothing in the proposed regulations recommended by the comment is statute, proposed § 301.6226–2(a) limits a partnership’s ability to file a prohibited by statute, the comment’s provided that a partnership that makes petition in a district court or the Court recommendation was not adopted. an election under § 301.6226–1 must of Federal Claims if the partnership has Sections 6225 and 6226 provide that furnish to each reviewed year partner a made an election under section 6226 the default rule, absent an affirmative statement reflecting the partner’s share (provided the partnership has made the election by the partnership, is that the of partnership adjustments associated jurisdictional deposit required by partnership shall pay any imputed with the imputed underpayment for section 6234(b)). Proposed § 301.6226– underpayment resulting from the which the election under § 301.6226–1 1(e) expressly provided that a partnership adjustments. The was made. A ‘‘reviewed year partner’’ is partnership making the election under regulations cannot switch the default any person who held an interest in the § 301.6226–1 is not precluded from rule from one that imposes partnership partnership at any time during the filing a petition under section 6234(a) liability under section 6225 to one that reviewed year. See proposed (which includes petitions in the Tax requires a push out election under § 301.6241–1(a)(9). One comment Court as well as petitions in district section 6226. Additionally, a suggested that the partnership should courts and the Court of Federal Claims). partnership ‘‘elects the application of’’ only be required to furnish (or have the Accordingly, to the extent the comment section 6226 with respect to an imputed option to furnish) statements to partners was seeking clarification that a underpayment. Section 6226(a)(1). That that would owe additional tax as a partnership can both make an election election is statutory and, like under any result of the partnership adjustments. under section 6226 and file a petition other election under the Code, is a This comment was not adopted. under section 6234, the comment was choice by the partnership. It would not The statute does not impose any not adopted because the plain language be consistent with the elective nature of qualifications or limitations on which of § 301.6226–1(f) (proposed at section 6226 to require the partnership partners from the reviewed year must be § 301.6226–1(e) and renumbered to to make a push out election under any furnished push out statements. The § 301.6226–1(f)) makes clear that a circumstance. statute mandates that the partnership partnership can take both actions. furnish a statement ‘‘to each partner of Accordingly, no changes were made to vii. Election Must Include Address for the partnership for the reviewed year.’’ proposed § 301.6226–1 in response to Each Reviewed Year Partner Section 6226(a)(2). This statutory the comment. To the extent the Proposed § 301.6226–1(c) required requirement is unambiguous and as a comment was seeking to make clear that that an election under § 301.6226–1 result is not being altered in the final a partnership that makes a valid election must include each reviewed year regulations. under section 6226 with respect to an partner’s name, address, and TIN. Under In addition, the collection mechanism imputed underpayment is no longer § 301.6226–2(e), each statement of section 6226 is similar to tax liable for that imputed underpayment, furnished by the partnership to a reporting with respect to Schedules the plain language of section 6226(a) reviewed year partner must include ‘‘the K–1, in that the partnership furnishes and § 301.6226–1(b)(2) makes clear that current or last address of the reviewed statements to the partners, and the is the case. The comment’s suggestion year partner that is known to the partners are solely responsible for regarding the amount of the partnership.’’ A partnership should use determining and self-reporting any tax jurisdictional deposit under section the same standard for determining the due. Additionally, in most cases, the

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partnership will not know whether a reviewed year partners in accordance includes the date the statement was reviewed year partner will owe with § 301.6226–2. Because the furnished by the partnership (the additional tax for a particular year as a proposed regulations clearly required reporting year). Therefore, the date the result of a push out election. Therefore, that statements be furnished to all statement is furnished by the audited the partnership could not properly reviewed year partners, no changes were partnership determines which taxable furnish statements without obtaining made in response to this comment. year a partner (either direct or indirect) additional information about each will pay tax as a result of taking into ii. Timing of When the Statements Are partner’s tax situation and determining account the partnership adjustments Furnished to a high degree of certainty whether the (the additional reporting year tax). For information provided was accurate. Two comments were received example, if a reviewed year partner is Such an exercise would be burdensome regarding the timing of the statements furnished a push out statement on for the partnership, potentially invasive furnished by a partnership to its March 15, 2022 with respect to to partners, and pose significant tax reviewed year partners. The first reviewed year 2020, the partner must administration concerns. Furthermore, comment suggested that the regulations report and pay its additional reporting such a rule would require the IRS to should provide that a partnership will year tax on the partner’s return for the know which partners would ultimately not be required to furnish statements 2022 taxable year, which, for owe tax as a result of the election to under proposed § 301.6226–2 until after individuals, would be considered timely evaluate whether the partnership the partnership has exhausted its rights filed on April 17, 2023 (April 15, 2023 properly furnished statements. While a to challenge the audit adjustments is a Saturday). In contrast, when a partnership may know it is likely that a through an administrative or judicial partner receives a Schedule K–1, the particular partner will owe additional proceeding. partner is required to report the items tax under certain circumstances, Under proposed § 301.6226–2(b)(1), a on that Schedule K–1 on the tax return crafting a general rule with those partnership that makes an election for the taxable year that has just ended. partnerships and circumstances in mind under § 301.6226–1 must furnish For example, if a partner receives a would be unfair to partnerships that statements to its reviewed year partners Schedule K–1 on March 15, 2022 for the lack such knowledge or have a means of (and file those statements with the IRS) 2021 taxable year, the partner must obtaining it. In contrast, a rule requiring no later than 60 days after the date all report the items on that Schedule K–1 the partnership to furnish a statement to of the partnership adjustments to which on the partner’s return for the 2021 each reviewed year partner, regardless the statement relates are finally taxable year, which, for individuals, of whether that partner might owe tax determined. Partnership adjustments would be due on April 15, 2022. as a result of the pushed out become finally determined upon the These examples illustrate the adjustments, is more administrable for later of the expiration of the time to file impediments to aligning the push out the IRS, less burdensome to a petition under section 6234 or, if a statement due date with the Schedule partnerships, and required by the petition under section 6234 is filed, the K–1 due date or with providing statute. date when the court’s decision becomes extensions of the statement due date. The same comment also final. Proposed § 301.6226–2(b)(1)(i), First, reviewed year partners who recommended that the regulations (ii). Once the time to file a petition has simultaneously receive both a push out clarify how adjustments are expired, or if a petition is filed, the statement and a Schedule K–1 may be communicated to reviewed year court’s decision has become final, the required to report the items on those partners who dispose of their interest in partnership has exhausted its ability to statements in different taxable years. the partnership, including persons who challenge the partnership adjustments While the receipt of tax documents at were partners in the reviewed year but through administrative and judicial the same time of year might have some not the adjustment year and persons avenues. Accordingly, because the plain superficial appeal, there is a risk of who were only partners in the language of proposed § 301.6226–2(b)(1) causing confusion about when and how intervening years (the years after the reflected the rule suggested by this to take into account the information on reviewed year but before the adjustment comment, no changes were made in those documents. For instance, year). Persons who were only partners response to this comment. receiving the push out statement at the in the intervening years are by The second comment suggested that same time as the Schedule K–1 could definition not reviewed year partners, the due date for the statements under result in a belief by the partner that the and therefore the partnership is not proposed § 301.6226–2 should align partner is supposed to report the required to furnish statements to such with the due date for the partnership’s amounts on the push out statement in partners under § 301.6226–2. As a Schedule K–1s and that extensions of the same year as the items on the result, partners that were only partners the statement due date should be Schedule K–1, which would likely be during intervening years are not permitted to accommodate the incorrect. In addition, the reviewed year required to take into account complexity of the calculations necessary partners, to whom the push out partnership adjustments under for the accurate distribution of the statements must be furnished, may not § 301.6226–3. Therefore, to the extent adjustments among the partners. The be the same as the partners for whom the comment was suggesting statements comment stated that not having the Schedule K–1s are required. Therefore, should be furnished to partners from statement due date coincide with the requiring the statements to be furnished intervening years only, this suggestion Schedule K–1 due date would create at or around the same time may also was not adopted. confusion among the partners and likely create confusion for the partnership. Persons who were reviewed year result in less timely compliance. This Second, aligning the push out partners, but who are not partners comment was not adopted. statement due date with the Schedule during the adjustment year or some or Under section 6226(a) and (b), each K–1 due date or allowing extensions all of the intervening years, retain their reviewed year partner that is furnished would significantly delay the reporting status as reviewed year partners a statement takes into account the and payment of the additional reporting regardless of when they disposed of partnership adjustments reflected on year tax by reviewed year partners, their interest. The partnership is that statement by adjusting the partner’s which is contrary to the interests of required to furnish statements to its chapter 1 tax for the taxable year which sound tax administration. A delay in the

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reporting and payment of the additional audited partnership, accommodating, in beneficial for partnerships. For purposes reporting year tax would also increase part, the comment’s recommendation. of the final regulations, however, the the amount of interest partners would comment’s suggestion was not adopted, iii. Reasonable Diligence in Identifying be liable for under section 6226(c). For and the final regulations maintain the Correct Address of Reviewed Year rule that the partnership undertake example, if a reviewed year partner is Partner furnished a push out statement on reasonable diligence when a statement March 15, 2022 with respect to Under proposed § 301.6226–2(b)(2), a is returned undeliverable. reviewed year 2020 under proposed partnership must furnish statements to In addition, the final regulations § 301.6226–2 that statement reflects each reviewed year partner in under § 301.6226–2(b)(2) clarify that if adjustments that were finally accordance with the forms, instructions, after undertaking reasonable diligence determined on or after January 15, 2022 and other guidance prescribed by the the partnership identifies a correct (within the past 60 days). However, if IRS. If the partnership mails the address for the reviewed year partner, instead the regulations provided that a statement, the partnership must mail the the partnership must mail the statement statement may be furnished by the statement to the current or last address to the reviewed year partner at that Schedule K–1 due date for the year in of the reviewed year partner that is correct address. which the adjustments become finally known to the partnership. If a statement is returned as undeliverable, the iv. Effect of Failing To Properly Furnish determined (2022), the push out Statements statement would not need to be partnership must undertake reasonable furnished until March 15, 2023 diligence to identify a correct address Several comments suggested that the (assuming no extensions). Under such a for the reviewed year partner to which regulations clarify the effect of a rule, the reviewed year partner would the statement relates. Proposed partnership’s failure to properly furnish statements under § 301.6226–2 has on not be required to pay the additional § 301.6226–2(b)(2). One comment suggested the final the validity of an election under section reporting year tax until April 15, 2024, regulations clarify that a master limited 6226. One comment recommended a full year after the partner would pay partnership (a publicly traded clarification of whether a failure to under the proposed regulations. See partnership as defined in section 7704) undertake reasonable diligence under § 301.6226–3(b). satisfies the reasonable diligence proposed § 301.6226–2(b)(2) with Accordingly, it is in the interests of requirement under proposed respect to a single partner would make sound tax administration to require the § 301.6226–2(b) if the partnership the entire election under section 6226 push out statements to be furnished utilizes the same procedures it uses for invalid or only the portion allocable to expeditiously for all adjustments that undeliverable Schedule K–1s. that specific partner. Similarly, another are finally determined more than 60 According to the comment, a master comment recommended that the days from the end of the calendar year limited partnership (MLP) normally regulations clarify that a failure to because the additional reporting year sends the Schedule K–1 to the address furnish the statement to one partner tax is required to be paid with the return provided to the MLP by the partner’s would mean the push out election was for the year in which the statement is broker; MLPs provide call centers and still effective with respect to the other furnished. This reporting and payment web-based support that allow partners reviewed year partners, but that the system also benefits partners by to directly provide updated contact partnership would be liable for the tax ensuring that reviewed year partners are information to the partnership; and attributable to the partner who was not furnished the push out statement close MLPs typically do not attempt to update properly furnished a statement. in time to the final determination of the partners’ addresses by using public Pursuant to section 6226(a)(1), an partnership adjustments, allowing the name and address databases, but will election under section 6226 is made reviewed year partners to determine any update an address if mail is returned ‘‘with respect to an imputed additional reporting year tax, effects on with a forwarding address. underpayment.’’ Section 6226(a)(2) tax attributes, and make payments to The regulations under the centralized requires a partnership to furnish stop interest from continuing to run. partnership regime are rules of general statements to ‘‘each partner’’ of the For these reasons, the comment applicability for all partnerships. The partnership for the reviewed year. recommending alignment of the push procedure suggested by the comment Accordingly, the IRS may invalidate an out statement due date with the would be cost-prohibitive for many election under section 6226(a) for any Schedule K–1 due date was not partnerships. The Treasury Department failure to meet the requirements of adopted. The recommendation that the and the IRS decline to provide a safe § 301.6226–1, regarding how an election push out statement due date be subject harbor in the final regulations solely for must be made, or § 301.6226–2, to extension also was not adopted for partnerships with the means to operate regarding the manner in which the reasons described in this section of a call center. Additionally, it is not statements must be furnished. Because this preamble. administrable to create special rules for an election under section 6226(a) is In the case of a tiered structure, different categories of partnerships as ‘‘with respect to an imputed however, the comments’ this would result in a multitude of underpayment’’ and not with respect to recommendation to align the push out special rules that in some cases may be each specific partnership adjustment statement due date with the Schedule contradictory and under inclusive. It that resulted in that imputed K–1 due date is reflected in § 301.6226– may also create additional burdens for underpayment, an election under 3(e). Under § 301.6226–3(e)(3)(ii), pass- partnerships that cannot comply with a section 6226 is either valid or invalid through partners must furnish general rule designed with only a with respect to the entire imputed statements to their affected partners no specific type of partnership in mind. underpayment for which the election later than the extended due date for the As the IRS gains experience with the was purportedly made. return for the adjustment year of the centralized partnership audit regime Nothing in the regulations, however, audited partnership. This due date and the push out election in particular, requires the IRS to determine that a aligns the push out statements furnished the Treasury Department and the IRS purported election under section 6226 is by pass-through partners with the may consider whether further guidance invalid in situations where the extended Schedule K–1 due date for the regarding reasonable diligence would be partnership fails to fully comply with

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§ 301.6226–1 or § 301.6226–2. To the collecting the imputed underpayment adjustments allocable to a partner or contrary, pursuant to § 301.6226–1(c)(1), from the audited partnership. The group of partners if the partnership has a push out election is valid unless and benefit to the audited partnership by concerns about furnishing a statement to until the IRS determines that the making a push out election is that the that partner or group of partners. See election is invalid. Accordingly, if a partnership is no longer liable for the proposed § 301.6225–2(d)(6). For partnership makes an election under imputed underpayment to which the example, if the partnership lacks current § 301.6226–1 and furnishes statements election relates. One of the requirements address information for a specific to 99 out of 100 reviewed year partners, to obtain this benefit is that the partner, the partnership may request a the partnership’s push out election is partnership must furnish correct specific imputed underpayment for that valid unless and until the IRS statements to all of the partnership’s partner’s share of the adjustments, pay determines the election is invalid. reviewed year partners. Until the the specific imputed underpayment, Several comments suggested that the statements have been furnished and the and make a push out election for the regulations provide a safe harbor that partners determine their additional general imputed underpayment. would satisfy the requirement to furnish reporting year tax, the tax implications Two comments expressed concerns statements to all reviewed year partners. for each partner as a result of taking into about situations when the partner no Two comments suggested that the account the pushed out adjustments is longer exists or is deceased or when the regulations adopt a de minimis rule uncertain. The additional reporting year partnership does not have current providing that a failure to deliver a tax for each partner may differ greatly, contact information for a former partner. certain number of push out statements, ranging from an increase in tax, a One of these comments suggested that or statements representing a de minimis decrease in tax, or no liability at all. once a partnership has furnished amount of the pushed out adjustments, None of the rules suggested by the statements to its partners and to the IRS, would not invalidate a partnership’s comments—de minimis safe harbor, the partnership has fulfilled its election under section 6226. One substantial compliance, good faith obligations under section 6226. The comment recommended that the standard—takes into account the other comment specifically stated that regulations provide that a partnership’s asymmetric tax consequences of the neither the partnership nor the push out election will not be pushed out adjustments in the hands of remaining partners should have any invalidated if the partnership has the partners. For instance, a large liability for the imputed underpayment substantially complied with the percentage of adjustments may be or associated interest and penalties with regulatory requirements. Another allocated to one or a few partners and respect to adjustments allocable to comment suggested that the regulations a failure to furnish statements to this de partners that are no longer in existence provide that a partnership will be minimis number of partners would or who are deceased. deemed to have made a valid election impede the proper collection of a large Nothing in the statute or the proposed under section 6226 if the partnership percentage of additional reporting year regulations provides that the makes a good faith effort to furnish push tax. Similarly, relatively small partnership or any remaining partners out statements to all of its partners. numerical adjustments may have are liable for any amounts that are Another comment recommended that significant tax effects on partners. A de allocable to reviewed year partners who the regulations clarify that the minimis rule, whether based on the are no longer in existence or are obligation to furnish a statement to each number of statements or amount of deceased. Under section 6226(a) and reviewed year partner is deemed adjustments, would frustrate the proposed § 301.6226–1, there are only satisfied if the partnership in good faith collection aspect of section 6226. two requirements for a partnership to furnishes a statement to each partner to Additionally, a de minimis rule would make an election under section 6226. whom it was required to send a present tax administration challenges One, the partnership must make an Schedule K–1 for the reviewed year. because a partnership can pick and election under section 6226(a)(1) and These comments were not adopted. choose which statements to furnish to § 301.6226–1 within 45 days of the date As an initial matter, proposed which partners, so long as the number the FPA is mailed by the IRS. Two, the § 301.6226–2 did not require that the of statements furnished or the amount of partnership must furnish statements to statements be delivered in order for the the pushed out adjustments fell within each partner from the reviewed year in partnership’s election under section the de minimis amount. Good faith and the time and manner prescribed by 6226 to be valid. Rather, proposed substantial compliance rules present the § 301.6226–2. The plain language of § 301.6226–2(b)(2) required the same concerns. proposed § 301.6226–1(c)(1) made clear partnership to furnish statements to Other provisions in the regulations that if a valid election is made under partners in accordance with forms, mitigate against the concerns expressed § 301.6226–1, the partnership is not instructions, and other guidance; mail by the comments. As previously liable for the imputed underpayment to the statements to the current or last discussed in this section of this which the election applies. address of the partner that is known to preamble, under § 301.6226–2(b)(2) a Additionally, under proposed the partnership, and undertake partnership must send a push out § 301.6226–2(f), only a partner’s reasonable diligence to identify a correct statement to the current or last address allocable share of the partnership address for any returned statement. of the partner that is known to the adjustments are included on the Compliance with the regulations does partnership. Doing so is generally statement furnished to that reviewed not require actual delivery, which is sufficient for purposes of satisfying the year partner. Pursuant to § 301.6226–3, illustrated by proposed § 301.6226– address requirements of § 301.6226–2. only the adjustments reflected on the 2(b)(3), Example 1. Additionally, the general versus specific statement furnished to the reviewed With respect to the suggestion that the imputed underpayment rules also year partner must be taken into account regulations adopt a de minimis, mitigate concerns about being unable to by that partner. To the extent the substantial compliance, or good faith properly furnish a statement to a comment expressed concern about the rule for failure to properly furnish particular partner or group of partners. partnership lacking a current address for statements to partners, these suggestions The partnership may request that the a partner that no longer exists, is were not adopted. The push out regime IRS designate a specific imputed deceased or is otherwise a former is a collection mechanism in lieu of underpayment with respect to the partner, the proposed regulations

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provide that the partnership may partners. The ability to correct furnished to the partners and those furnish statements to the last address statements gives the partnership an partners would take into account the known to the partnership. Only if the opportunity to ensure statements were adjustments. If the IRS determines that statements are returned as undeliverable furnished properly and, to the extent a the correction of the errors was is the partnership required to undertake correction can cure the identified insufficient, the IRS could determine reasonable diligence to ascertain a defects, to take steps to ensure that an the partnership’s election under section current address. Accordingly, no election under section 6226 will not be 6226 was invalid, but the period of revisions to the final regulations were invalidated. The ability to correct errors limitations on assessing the imputed made in response to this comment. also ensures that partners have the underpayment may have expired by that correct information when the partners time. By requiring IRS permission v. Corrections of Errors in Statements take into account the adjustments before any corrected statements are As discussed in section 4.B.iv. of this reflected on the statements. furnished, the IRS can evaluate each preamble, several comments expressed Accordingly, the final regulations request based on the facts and concerns about the requirement to under § 301.6226–1(d) clarify that the circumstances and ensure that any furnish statements to all of the IRS may not invalidate an election proposed corrections are consistent with partnership’s reviewed year partners. based on errors that are timely corrected the determinations made during the Although those comments were not by the partnership in accordance with partnership proceeding and would not adopted, the ability to correct errors in § 301.6226–2(d). However, any errors in frustrate the collection of any amounts statements mitigates the potential effects any statements furnished by the owed as a result of the partnership of this rule. Proposed § 301.6226–2(e) partnership are subject to penalty under proceeding. Requiring IRS permission provided that the partnership must section 6722 and the regulations also incentivizes partnerships to submit provide correct information in the thereunder. See § 301.6226–2(a). In the correct statements by the due date, statements it furnishes to its partners case of errors discovered by the IRS, the which ensures that partners are and files with the IRS. Proposed IRS is under no obligation to require the provided timely and accurate § 301.6226–2(d)(2)(i) provided that if a partnership to provide additional information with which to take into partnership discovers an error in a information or to correct any errors account the adjustments. Because statement within 60 days of the discovered or brought to the IRS’s partners may have already taken into statement due date, the partnership attention at any time. The IRS may, account the adjustments, any must correct that error, and may do so instead, invalidate the election. corrections received by the partners without IRS consent. If a partnership One comment recommended changes after they have taken into account the discovers an error more than 60 days to the correction process under adjustments could detrimentally affect after the statement due date, the § 301.6226–2(d) and the timing of the those partners. partnership may only correct the error correction period. Specifically, the The same comment also suggested after receiving IRS consent. Proposed comment suggested with respect to that with respect to errors discovered by § 301.6226–2(d)(2)(ii). Additionally, errors discovered by a partnership, the the IRS, the IRS may not unreasonably when the IRS discovers an error in a partnership should have an automatic refuse to permit a partnership to issue statement, the IRS may require the obligation and right to issue corrected corrected statements if correction of the partnership to correct that error or to statements for errors discovered no later error results in a reduced tax liability by provide additional information. than 60 days after the extended due date the affected partners or to correct the Proposed § 301.6226–2(d)(3). of the audited partnership’s adjustment allocation of an adjustment between The correction rules under proposed year return. The comment also partners. This comment was not § 301.6226–2(d) were designed to suggested that for errors discovered by adopted. To extent this comment was require a partnership that identifies an the partnership after this date, the suggesting that the regulations require error in a statement to correct that error partnership must notify the IRS, and the IRS to require the partnership to expeditiously. Similarly, nothing in the unless the IRS objects within 90 days of correct errors the IRS discovers in these regulations prevents a partner that such notification, the partnership must circumstances, the comment was not receives a statement containing an error issue the corrected statements. The adopted. The IRS needs discretion to from alerting the partnership of the error comment suggested that if the IRS issues evaluate whether requiring the within the 60-day period so that the a denial within the 90-day period, such correction of errors is in the interest of audited partnership can correct the denial shall include an explanation for sound tax administration. For example, error. Even if the partnership corrects the denial, and the partnership shall the errors may be de minimis or the errors within the 60-day period, have the ability to challenge the correction of the errors may result in however, proposed § 301.6226–1(c)(2) decision with IRS Appeals. These barred assessments or require partners provided the IRS could invalidate the suggestions were not adopted. to file amended returns if they have election. It is not in the interest of sound tax already taken into account the In light of the comments in section administration to place a limit on the adjustments. To the extent the comment 4.B.iv of this preamble regarding the time the IRS has to consider whether to was suggesting that the IRS should not effect on the push out election of allow corrected statements after 60 days unreasonably withhold consent in failures to furnish correct statements, from the due date of the statements. For situations where the partnership has the Treasury Department and the IRS example, a partnership may request to discovered errors, the comment was also have revised the rule under proposed make a correction at a time when the not adopted. As stated earlier in this § 301.6226–1(c)(2). The 60-day period of limitations on assessing section of this preamble, the IRS needs correction period should serve as a additional tax for the affected partners the flexibility to evaluate requested period of time after the statements are was closed, but the period of limitations changes based on the facts and furnished to verify that the information for requesting a refund as to other circumstance of each request. on the statements was correct and to affected partners was still open. If the rectify any errors without adverse IRS was unable to process the request to vi. Contents of the Statements consequences regarding the push out issue corrected statements within 90 Under proposed § 301.6226–2(e), each election to the partnership or its days, the corrected statements would be statement described in proposed

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§ 301.6226–2 must include an if the adjustments were taken into return submitted, under section enumerated list of items, including the account in the first affected year. 6225(c)(2) by a reviewed year partner.’’ partner’s name and taxpayer Because the rule did not account for any The final regulations under § 301.6226– identification number (TIN) and any decrease in a reviewed year partner’s tax 3(b)(2) and (3) remove the language other information required by forms, for a taxable year, former proposed referring to the alternative procedure for instructions, and other guidance § 301.6226–3(b)(1) provided that a filing amended returns under section prescribed by the IRS. Several correction amount for any taxable year 6225(c)(2). Amounts assessed based on comments suggested that the IRS assign could not be less than zero and that any submissions under the alternative a unique control number or other amount less than zero could not reduce procedure more appropriately fall numerical code to a notice of final any other correction amount. within the amounts described in partnership adjustment and require that Section 206(e) of the TTCA amended § 301.6226–3(b)(2)(ii)(B) and all push out statements with respect to section 6226(b) to provide that, when a (b)(3)(ii)(B). Accordingly, treating such an imputed underpayment reflected on reviewed year partner takes into account amounts as akin to amounts shown on that FPA include that control number. the adjustments under section 6226(b), amended returns could have led to The IRS intends to adopt this suggestion the partner’s chapter 1 tax for the inaccurate correction amounts. As such, by assigning a unique control number to reporting year is adjusted by the the final regulations under § 301.6226– each examination under the centralized amounts the partner’s chapter 1 tax for 3(b)(2)(ii)(B) and (b)(3)(ii)(B) have been partnership audit regime and by using the first affected year or any intervening revised to clarify that the amounts that number for each form, letter, or year would increase or decrease if the under those provisions include not only other document used in the examination partner’s share of the adjustments were the amounts described in § 1.6664–2(d), as well as any forms or statements taken into account in the first affected but also any amounts not included on utilized for a push out election. The year. The TTCA amendments to section the return of a partner which are final regulations, however, do not 6226(b) were adopted in the August assessed against and collected from the include the audit control number as an 2018 NPRM. Proposed § 301.6226–3(b), partners. Such amounts include enumerated item under § 301.6226–2(e). as revised in the August 2018 NPRM, amounts paid as part of modification Requiring the control number through provided that each reviewed year under § 301.6225–2, including under the forms and instructions provides the partner’s chapter 1 tax for the reporting the alternative procedure or in IRS with the flexibility to gain year is increased or decreased by the accordance with a closing agreement. experience with the use of a unique additional reporting year tax, as Such amounts do not include, however, control number and to make changes, as appropriate. Under proposed any amounts paid with an amended necessary, without needing to amend § 301.6226–3(b)(2) and (3), the return filed as part of modification the regulations. This flexibility correction amounts are the amounts by because those amounts are included preserves government resources and which the partner’s chapter 1 tax would with the amounts shown on a return or also expedites the process for taxpayers increase or decrease if the partner’s amended return under § 301.6226– to be aware of changes in IRS taxable income for that year were 3(b)(2)(ii)(A) and (b)(3)(ii)(A). procedures. recomputed by taking into account the Several comments received prior to partner’s share of the partnership the TTCA amendments recommended C. Adjustments Taken Into Account by adjustments. Under proposed that the calculation of the additional Partners § 301.6226–3(b)(1), as revised, a reporting year tax under former The comments regarding how correction amount for the first affected proposed § 301.6226–3(b) be revised to adjustments are taken into account by year or any intervening year may be less account for potential decreases to a partners covered five general areas: (1) than zero, and any correction amount reviewed year partner’s chapter 1 tax The calculation of the additional less than zero may reduce any other had the adjustments been taken into reporting year tax; (2) penalties, correction amount. account. Certain comments stressed that additions to tax, and additional The final regulations under it was critical for taxpayers to receive amounts; (3) pass-through partners; (4) § 301.6226–3(b)(1) were further revised symmetrical treatment under section qualified investment entities and master to provide that nothing in § 301.6226–3 6226 with respect to adjustments for limited partnerships (MLPs); and (5) the entitles any partner to a refund of tax overpayments or other adjustments that examples under proposed § 301.6226– imposed by chapter 1 to which such would serve to reduce the additional 3(h). partner is not entitled. This language reporting year tax. One comment clarifies that the rules under section suggested that a decrease in tax in one i. Calculation of the Additional 6226 and 6227 are consistent insofar as year as a result of the adjustments Reporting Year Tax those rules concern the ability of a should be able to reduce the additional Former proposed § 301.6226–3(a) partner to claim a refund of an tax payable with respect to any other provided that the chapter 1 tax for each overpayment when taking into account taxable year. One comment specifically reviewed year partner for the reporting partnership adjustments. See recommended that former proposed year was increased by the additional § 301.6227–3(b)(1). Whether an § 301.6226–3(b) be revised to provide reporting year tax, which was generally overpayment exists is determined by the that the correction amount for a partner defined as the aggregate of the Code and existing law outside the scope is the amount by which the reviewed correction amounts determined under of these regulations. See section 5.D. of year partner’s chapter 1 tax would former proposed § 301.6226–3(b). Under this preamble for further discussion. increase or decrease for the first affected former proposed § 301.6226–3(b), the Proposed § 301.6226–3(b)(2) and (3) year and all intervening years. aggregate of the correction amounts was provided that when computing a The plain language of section 6226(b), determined by adding the amount by correction amount for the first affected as amended by the TTCA, and proposed which a reviewed year partner’s chapter year or any intervening year, partners § 301.6226–3(a) and (b), as revised in 1 tax would have increased for the first should account for the amount of tax the August 2018 NPRM, make clear that affected year with the amount by which shown on an amended return for such any decreases in tax that result from the partner’s chapter 1 tax for any year, ‘‘including an amended return taking into account the adjustments can intervening year would have increased filed, or alternative to an amended produce a correction amount, and in

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turn an additional reporting year tax, correction amounts and the additional automatic extensions in order to file that is less than zero. Accordingly, reporting year tax. Providing this refund claims was not adopted. because the recommendations made by additional guidance through forms and Two comments suggested that the the comments were reflected in the instructions allows for both the IRS and final regulations clarify whether a proposed regulations, no changes were taxpayers to gain experience with those partner must calculate and pay any necessary in response to those documents and to recommend and to additional taxes due under chapters 2 comments. make changes, as necessary and and 2A of the Code when taking into Another comment recommended that appropriate, without needing to amend account adjustments under section the regulations clarify how information the regulations. This informal guidance 6226(b). One comment specifically would be communicated to reviewed process preserves government resources asked about the application of chapters year partners to calculate a correction and expedites the process by which the 2 and 2A in the context of an election amount under section 6226(b)(2)(B) for IRS can respond to taxpayer needs and by the taxpayer to pay the safe harbor an intervening year and suggested that by which taxpayers are made aware of amount. Another comment asked about partners calculate only the net increase changes in IRS procedures. Accordingly, the consequences of failing to pay in tax in each intervening year. The no changes were made to the regulations chapter 2 or 2A tax if the regulations comment described an example of an in response to this comment. imposed such a requirement. adjustment that results from timing Two comments observed that an audit First, regarding the comment specific differences and recommended that the under the centralized partnership audit to the safe harbor amount, the safe push out statement include the regime may be concluded after the harbor amount was removed from the beneficial effect of deductions, if any, in statute of limitations for amending regulations in the December 2017 subsequent years. partner returns has expired. The NPRM, no comments were received Consistent with section 6226(b)(2)(B), comments recommended that the statute regarding its removal, and the final proposed § 301.6226–3(b)(3) provided of limitations should be automatically regulations do not include a safe harbor that a correction amount for an extended to allow partners time to file amount. Accordingly, inasmuch as this comment was concerned about the safe intervening year is the amount the an amended return and claim a refund. partner’s chapter 1 tax for such year harbor amount, this comment was not To the extent these comments were would increase or decrease after taking adopted. concerned about the inability to benefit into account any adjustments to tax Regarding the other comments, attributes that resulted from taking into from any decreases in tax that would section 6226(b)(1) provides that each account the partnership adjustments in have resulted from taking into account partner’s ‘‘tax imposed by chapter 1’’ the first affected year. Accordingly, in the adjustments under section 6226(b), shall be adjusted by the aggregate of the order to determine an intervening year those concerns are addressed by correction amounts determined under correction amount, the partner needs to proposed § 301.6226–3(b) as revised in section 6226(b)(2). Both section know the partnership adjustments for the August 2018 NPRM. As discussed 6226(b)(2)(A) and (B) describe the the reviewed year, which is information earlier in this section of this preamble, correction amounts as amounts by provided on the push out statement the plain language of § 301.6226–3(b) which the partner’s ‘‘tax imposed under furnished to the partner. See allows partners to account for increases chapter 1’’ would increase if the § 301.6226–2(e). No changes were made and decreases that would have resulted partner’s share of the adjustments were to the regulation to respond to the in the first affected year or any taken into account. Consistent with comment’s request for clarification on intervening year were the adjustments section 6226(b), proposed § 301.6226– this point. Regarding the comment’s taken into account in those years. 3(b) provided that each partner’s suggestion that the correction amount To the extent the comment was chapter 1 tax for the reporting year is for any intervening year be calculated addressing seeking refunds via amended increased or decreased by the amounts by reference to the partner’s net increase returns outside the push out process, by which the partner’s chapter 1 tax in tax, the rule under § 301.6226–3(b)(3) § 301.6225–2(d)(2) allows for would increase or decrease were the accommodates this suggestion because modification of the imputed adjustments taken into account. The it accounts for both increases and underpayment via partner amended plain language of the statute and the decreases that would have occurred in returns for taxable years for which the proposed regulations makes clear that a an intervening year. Therefore, no period of limitations would otherwise reviewed year partner only increases its changes were made to the regulations in be expired. See section 6225(c)(2)(D). To chapter 1 reporting year tax by the response to this suggestion. the extent the comment was seeking a aggregate of the correction amounts, The comment also recommended that mandatory extension of all partner which are calculated by reference to the the regulations provide that each (direct and indirect) statutes of amounts by which the partner’s chapter partner calculates the correction limitation to file amended returns and 1 tax would increase or decrease for the amounts as though drafting an amended claim a refund, it is not in the interests first affected year or any intervening return and that such calculation should of sound tax administration to provide year. Therefore, no changes were made be based on generally applicable rules for automatic extensions where other to § 301.6226–3(b) in response to this under the Code. The plain language of mechanisms provide adequate remedies comment. Furthermore, because the proposed § 301.6226–3(b)(2) and (3) for taxpayers. Under both the push out regulations do not require payment of provided precise rules for calculating process and the amended return chapter 2 or 2A taxes when a partner the correction amounts. Those rules are modification procedures, partners may takes into account adjustments under consistent with how underpayments benefit from decreases in tax that result section 6226(b), the consequences of and overpayments are generally from partnership adjustments. Creating failing to pay those taxes is beyond the calculated elsewhere in the Code and an additional automatic extension scope of the regulations. regulations and thus provide for the process to achieve the same results method the comment recommended. potentially leads to more administrative ii. Penalties, Additions to Tax, and See, for example, § 1.6664–2. Forms and burden for the IRS without any tangible Additional Amounts instructions will provide additional benefit for partners. Accordingly, the Former proposed § 301.6226–3(a) guidance for partners in computing comments’ recommendation for provided that a reviewed year partner

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must pay the partner’s share of any partnership in the partnership-level scenarios involving amended returns penalties, additions to tax, or additional proceeding, regardless of whether the and audit adjustments are not amounts determined at the partnership defense was based on facts and sufficiently similar to provide a relevant level reflected on the statement circumstances relating to a person other baseline against which to determine furnished to the partner under than the partnership. As discussed in how the centralized partnership audit § 301.6226–2. See former proposed section 1.A of this preamble, former procedures should be developed. § 301.6226–2(e)(7) and (f)(3). Example 1 proposed § 301.6221(a)–1(c) was Second, under the centralized in former proposed § 301.6226–3(g) removed from the regulations in the partnership audit regime, the illustrated the application of this rule. December 2017 NPRM. As part of the applicability of penalties, additions to In the example, the IRS determines an revisions in the December 2017 NPRM, tax, and additional amounts that relate imputed underpayment and a related the regulations under section 6226 to partnership adjustments is accuracy-related penalty in the amount (former proposed § 301.6226–3(i)) were determined at the partnership level. of $32. The partnership elects the also revised to provide that the Section 6221(a). A push out statement application of section 6226 with respect calculation of the partner’s penalty furnished to a partner under to the imputed underpayment and amount in the case of a push out § 301.6226–2 will include any penalties, furnishes a statement to partner A, a 25 election is based on the characteristics additions to tax, or additional amounts percent partner, reflecting A’s share of of, and facts and circumstances determined at the partnership level that the adjustments and A’s share of the $32 applicable to, the reviewed year partner. are applicable to the adjustments penalty amount ($8). The example In addition, a reviewed year partner pushed out to that partner. The concludes that A must pay its $8 share claiming that a penalty, addition to tax, applicability of such penalties, of the penalty with its reporting year or additional amount is not due because additions to tax, and additional amounts return. of a partner-level defense may raise that as set forth in the push out statement One comment expressed concern with defense, but must first pay the penalty furnished to the partner are binding on Example 1 under former proposed and file a claim for refund for the the partner pursuant to section 6223. § 301.6226–3(g), particularly the result reporting year. See proposed See § 301.6226–1(e). Therefore, when that a partner pays a penalty amount § 301.6226–3(d)(3), as revised in the taking into account the pushed out based on the amount of the August 2018 NPRM. adjustments, the applicability of any partnership’s imputed underpayment, One comment recommended that the penalties related to those adjustments rather than the amount of the partner’s regulations clarify that a partnership has already been determined. The increased tax liability. The comment that makes a push-out election will be imposition and amount of the penalty is recommended the regulations clarify able to avail itself of partner-level determined only upon the partner that penalties are not measured by defenses at the partnership level. For calculating the additional reporting year reference to the imputed underpayment the reasons discussed in section 8.A. of tax (or imputed underpayment in the amount determined at the partnership this preamble, this comment was not case of pass-through partners) and level. adopted. Under § 301.6233(a)–1(c)(1), a applying any relevant threshold This comment was addressed by partner-level defense may not be raised amounts. proposed § 301.6226–3(d), as revised in in a proceeding of the partnership, Because the IRS has already the December 2017 NPRM. As revised, including a partnership that makes an determined that a penalty applies, it is proposed § 301.6226–3(d)(2) provided election under section 6226, except as contrary to the interests of sound tax that a reviewed year partner calculates otherwise provided in guidance administration to allow partners to the amount of any penalty, addition to prescribed by the IRS. argue they are not liable for the penalty tax, or additional amount at the partner Two other comments recommended based on partner-specific reasons level by treating a correction amount that the regulations should provide a without first requiring payment of the determined under § 301.6226–3(b) as if mechanism for partners to raise partner- penalty. Allowing a partner to raise a it were an underpayment or level defenses prior to assessment, partner-level defense without prepaying understatement for the first affected year rather than requiring the partner to first the penalty would require the IRS to or intervening year, as applicable. If, pay the penalty and then file a claim for check each reviewed year partner’s after taking into account the partnership refund to raise the partner-level defense. return to see if a penalty defense was adjustments, the reviewed year partner One comment specifically suggested properly raised and open up an did not have an underpayment, or had that a partner could raise a partner-level examination of the partner to determine an underpayment that fell below the defense in the push out context by the validity of the defense. Such a applicable threshold for the imposition submitting a statement supporting that process would frustrate the collection of of a penalty, no penalty would be due defense with the partner’s reporting year the penalties, the applicability of which from the reviewed year partner. return. This comment further suggested was already determined at the Proposed § 301.6226–3(d)(2). that the requirement to pre-pay partnership level in an examination. Accordingly, the proposed regulations penalties is contrary to the procedures Requiring pre-payment of penalties make clear that a partner’s penalty is not in place for similar scenarios involving before defenses are raised ensures that based on the imputed underpayment amended returns and audit adjustments. partners raise only colorable penalty amount determined at the partnership These comments were not adopted. defense claims. For those that do not level, as recommended by the comment. First, to the extent the comment have such claims, it will ensure Example 1 under § 301.6226–3(h) was addresses procedures for amended immediate collection of the appropriate also revised to account for this rule returns and audit adjustments other amount of penalties. change. than partnership adjustments, those One comment observed that, as a procedures are beyond the scope of practical matter, it is unclear how a I. Penalty Defenses these regulations. The centralized limited partner would dispute penalties Former proposed § 301.6221(a)–1(c) partnership audit regime is a new set of determined at the partnership level, had provided that any defense to any procedures that does not have an particularly because the partner may penalty, addition to tax, or additional existing parallel in other areas of have no or limited information of amount must be raised by the procedural tax law, and, as such, other actions at the partnership level or

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control over such actions even if known. partners, the payment would be a partners’ amounts of penalties and The comment recommended clarifying payment towards the liability of the interest. Further, because penalties and what constitutes reasonable cause or partners, not the partnership. The interest are determined at the partner good faith under circumstances that will ability of a person to make a payment level, a partnership will generally not be be common among partnerships with towards another’s tax liability currently able to pay the exact amount of limited partners. exists outside of the centralized penalties and interest due with respect Proposed § 301.6226–3(d)(3) defined partnership audit regime, and the to each foreign partner. Therefore, there partner-level defenses as those defenses regime does not alter or affect this would be no basis for waiving the filing that are personal to the reviewed year ability. The partnership and its partners requirement for a foreign partner under partner and based on the facts and may enter into a business arrangement these circumstances, even in cases in circumstances applicable to that partner whereby the partnership makes a which the partnership is able to satisfy (for example, a reasonable cause and payment towards the partner’s penalty the tax due at source. For these reasons, good faith defense under section 6664(c) liabilities, or whereby the partnership the comment’s suggestion was not based on facts specific to a particular remits an amount to each partner to adopted and no changes were made to partner). Limited partners will have an compensate for any potential penalties, the regulations in response to the opportunity to raise defenses specific to additions to tax, or additional amounts. comment. their facts and circumstances. The Nothing in the regulations under III. Interest on Penalties, Additions to partners (limited partner or otherwise) § 301.6226–3 would disturb those types Tax, and Additional Amounts should have all of the information of arrangements. needed to adequately raise a partner- At the same time, the regulations do Section 6226(c)(2) provides that in the level defense because that defense is not provide a specific method for case of a push out election, interest shall based on the facts and circumstances making such payments. Creating and be determined at the partner level from applicable to the specific partner raising monitoring a separate system to allow the due date of the return for the taxable the defense. The partner does not need for partnerships to pay penalties on year to which the increase in chapter 1 new information regarding partnership- behalf of its partners would be tax is attributable. Proposed § 301.6226– level actions or control over burdensome for the IRS, partnerships, 3(c)(1) provided that interest on each partnership-level information that the and partners. As discussed earlier in correction amount greater than zero is partner did not have access to at the this section of the preamble, under calculated from the due date (without time it took a position on its return proposed § 301.6226–3(d)(2) a partner’s extension) of the reviewed year reflecting the items from the partnership penalty amount is calculated based on partner’s return for the applicable subject to penalty. The centralized the facts and circumstances unique to taxable year until the amount is paid. partnership audit regime does not alter each partner. For the partnership to For purposes of calculating interest on the existing law under the Code, fully pay the amount of penalties owed any penalties, additions to tax, or regulations, or applicable case law by its partners, the partnership would additional amounts, proposed relating to reasonable cause and good need to obtain detailed information § 301.6226–3(c)(2) similarly provided faith determinations. Furthermore, as about each partner’s personal tax that such interest is calculated from the discussed in section 8.A of the situation, which is burdensome for the due date (without extension) of the preamble, any defense that is based on partnership and potentially invasive to reviewed year partner’s return for the the conduct or actions of the the partners. This information would applicable taxable year until the amount partnership is a partnership-level also have to be transmitted to the IRS to is paid. defense that must be raised by the verify the correct penalty amount was One comment observed that section partnership during the partnership paid and reflected in each partner’s 6226(c)(2) is silent as to whether the due proceeding. See proposed account. For these reasons, this date of the return for the purpose of § 301.6233(a)–1(c)(2)(v). comment was not adopted. calculating interest is determined with Another comment similarly suggested or without regard to any extension of II. Partnership Payment of Penalties on that the IRS create a process by which time for filing, and noted that the statute Behalf of Partners the partnership could pay both interest does not differentiate between interest One comment recommended that the and penalties on behalf of its foreign on tax and interest on penalties and partnership have the option of paying partners so that those foreign partners additions to tax. The comment penalties at the partnership level while would not need to obtain a TIN to file recommended the regulations adopt a pushing out the partnership adjustments a U.S. tax return to report and pay bifurcated approach under which to its partners. The comment noted that interest and penalties. The comment interest would run on the correction pushing out penalties may require long suggested that the IRS could require, as amounts from the due date of the return and complex explanations regarding part of that process, the partnership to without regard to extensions while why the penalties apply, which could obtain documentation from the foreign interest on penalties would run from the be burdensome to the partnership, partner authorizing the partnership to due date of the return including any partners, and the IRS, and may cause make the payment on the foreign extensions. The comment observed a friction among the partners. partner’s behalf. The comment also similar bifurcated approach exists for Section 6226(c)(1) provides that any recommended that the regulations make calculating interest on tax and certain penalties, additions to tax, or additional clear such a payment would not penalties outside the partnership amounts shall be determined as preclude the partnership from making a context. provided under section 6221, and the push out election with respect to the After consideration, the Treasury partners of the partnership for the adjustments. This comment was not Department and the IRS have adopted reviewed year shall be liable for any adopted. this comment to be consistent with the such penalty, addition to tax, or As discussed earlier in this section of method of calculating interest on additional amount. If the partnership this preamble, there are administrative penalties outside of the centralized were to pay any penalties, additions to difficulties involved with adopting a partnership audit regime pursuant to tax, or additional amounts in lieu of specific method for a partnership to section 6601(e)(2)(B). Accordingly, pushing out those amounts to its determine and pay over to the IRS its § 301.6226–3(c)(2) now provides that

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interest on any penalties, additions to decrease by reason of the adjustment to as if such partner was a reviewed year tax, or additional amounts is calculated tax attributes. An adjustment to a tax non-pass-through partner. If a pass- from the due date (including any attribute is any tax attribute which through partner failed to take into extension) of the reviewed year ‘‘would have been affected’’ if the account the adjustments in accordance partner’s return for the applicable tax adjustments ‘‘were taken into account’’ with former proposed § 301.6226– year until the amount is paid. in the first affected year. Under the 3(e)(1), the pass-through partner was language of section 6226(b)(2) and (3), required to pay an amount calculated IV. Interest on the Additional Reporting adjustments are not actually taken into like an imputed underpayment plus any Year Tax account like they would be if an applicable penalties and interest. Section 6226(c)(2) provides that amended return was filed under Section 204(a) of the TTCA added to interest in the case of a section 6226 § 301.6225–2(d)(2). Similarly, the the Code section 6226(b)(4), which election is determined at the partner increases or decreases do not actually provides that a partnership or S level, from the due date of the return for occur as they would in the amended corporation that receives a statement the taxable year to which the increase in return context and tax attributes are not under section 6226(a)(2) must file a chapter 1 tax is attributable, and at the actually adjusted as part of this partnership adjustment tracking report underpayment rate under section calculation. Accordingly, in the case of with the IRS and furnish statements 6621(a)(2) (substituting 5 percent for 3 an increase in tax that would result in under rules similar to the rules of percent). As explained in section 4.A of the first affected year or any intervening section 6226(a)(2). If the partnership or the preamble to the August 2018 NPRM, year if the adjustments were taken into S corporation fails to furnish such while the TTCA amended section account, no overpayment results for any statements, the partnership or S 6226(b) to provide that both increases year because there is an increase in tax, corporation must compute and pay an and decreases in chapter 1 tax are used not a decrease. In the case of a decrease imputed underpayment under rules in computing a partner’s additional in tax that would result in the first similar to the rules of section 6225. The reporting year tax, the TTCA did not affected year or any intervening year if rules under former proposed similarly amend the reference to the adjustments were taken into § 301.6226–3(e) were revised in the ‘‘increases’’ in section 6226(c)(2). The account, there is no overpayment August 2018 NPRM to reflect the result of the changes to section 6226 is because the determination of a decrease amendment to section 6226(b)(4). See that interest only applies to the in tax is merely by reference to the section 4.A. of the preamble to the increases in the chapter 1 tax that would relevant year to be taken into account as August 2018 NPRM. have resulted from taking into account part of the total additional reporting Three comments were received the partnership adjustments under year tax. Therefore, no overpayment regarding proposed § 301.6226–3(e). The section 6226. No provision under the interest is due and owing to the partner. comments focused on three topics: (1) centralized partnership audit regime The statements furnished under provides for interest on a decrease in iii. Pass-Through Partners proposed § 301.6226–3(e)(3); (2) the chapter 1 tax that would have resulted The June 2017 NPRM reserved on the computation of an imputed in the first affected year or any issue of how a pass-through partner underpayment under proposed intervening year if the adjustments were takes into account its share of § 301.6226–3(e)(4); and (3) the payment taken into account in those years. adjustments reflected on a statement of the additional reporting year tax by Accordingly, proposed § 301.6226– furnished to the pass-through partner affected partners in accordance with 3(c)(1) provided that interest on the under § 301.6226–2. In response to the proposed § 301.6226–3(e)(4)(iv). correction amounts determined under June 2017 NPRM, multiple comments I. Statements Furnished Under proposed § 301.6226–3(b) is only recommended that pass-through § 301.6226–3(e)(3) calculated for taxable years for which partners take into account adjustments there is a correction amount greater than by pushing out those adjustments to the Proposed § 301.6226–3(e)(1) provided zero, that is, taxable years for which next tier of partners and suggested that each pass-through partner that is there would have been an increase in approaches to achieve this result. furnished a statement described in chapter 1 tax if the adjustments were After careful consideration of those § 301.6226–2 with respect to taken into account. comments, the December 2017 NPRM adjustments of an audited partnership One comment suggested that the final adopted an approach that required a must file and furnish statements to its regulations clarify that the IRS will pay pass-through partner to take into affected partners. Affected partners are interest on any refunds issued on prior account adjustments reflected on a push persons that held an interest in the pass- overpayments resulting from a out statement by either furnishing through partner at any time during the taxpayer’s statements filed under statements to its own partners or by taxable year of the pass-through partner section 6226 with their reporting year paying an amount calculated like an to which the adjustments in the return. The comment expressed the imputed underpayment with respect to statement relate. Consistent with section belief that the rule under section the adjustments, plus any applicable 6226(b)(4)(B), proposed § 301.6226– 6226(c)(2) is only intended to increase penalties and interest. See former 3(e)(3)(ii) provided that a pass-through the normal statutory rate of interest proposed § 301.6226–3(e)(1). The partner must furnish such statements no imposed, not to exclude interest on regulations created an iterative process later than the extended due date for the overpayments. under which any pass-through partner return for the adjustment year of the The additional reporting year tax is receiving a statement from another pass- audited partnership. One comment calculated under section 6226(b)(2) by through partner must also take into recommended that the regulations reference to the amount that a partner’s account the adjustments on the provide a process by which a pass- chapter 1 tax ‘‘would’’ increase or statement by furnishing statements to its through partner could apply to the IRS decrease if the partner’s share of own partners or paying an amount for a discretionary short-term extension adjustments ‘‘were taken into account’’ calculated like an imputed of the time period set out in proposed in the first affected year or in the case underpayment. Any ultimate, non-pass- § 301.6226–3(e)(3)(ii). This extension of an intervening year, the amount by through partner was required to take would address exceptional or unusual which such tax would increase or into account its share of the adjustments circumstances in which a pass-through

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partner is unable to furnish the regulations. This flexibility is instructions, or other guidance if the IRS statements to all its affected partners particularly important as the IRS gains determines such identification is within the specified time frame. This experience with the centralized appropriate for foreign persons. This comment was not adopted. partnership audit regime. Flexibility flexibility gives the IRS and Section 6226(b)(4)(B) expressly also preserves government resources partnerships time to evaluate whether provides that statements under section and will expedite the process for the IRS an alternative form of identification is 6226(b)(4)(A) ‘‘shall be furnished by not to respond to taxpayer needs and for administrable and beneficial without later than the due date for the return for taxpayers to be aware of changes in IRS needing to amend the regulations to the adjustment year of the audited procedures. allow for alternative identification, partnership.’’ The statute does not Under § 301.6226–3(e)(3)(iii), each which preserves government resources provide for an extension beyond the statement furnished by a pass-through and expedites the process by which the extended due date of the adjustment partner must include correct IRS responds to taxpayer needs and year return. Under proposed information concerning certain taxpayers become aware of changes in § 301.6226–3(e)(3)(ii), the adjustment enumerated items. These items include IRS procedures. year return due date is the extended due the name and TIN of the affected partner The same comment also date under section 6081 regardless of to whom the statement is being recommended that to the extent whether the audited partnership is furnished as well as any other practicable, the IRS identify as soon as required to file a return for the information required by forms, possible any additional information that adjustment year or timely files a request instructions, and other guidance may be required in additional forms, for an extension under section 6081 and prescribed by the IRS. One comment instructions, or other guidance for the regulations thereunder. As a suggested that the regulations should statements under § 301.6226–3(e)(3). threshold matter, the language of section clarify whether a statement provided The comment suggested regulations or 6226(b)(4)(B), providing that statements under proposed § 301.6226–3(e) would drafts of forms or instructions could ‘‘shall be furnished not later than’’ the be effective without the TIN of the identify such additional information, due date suggests that discretionary affected partner if the affected partner is which would allow partnerships to extensions are not permissible. a foreign person not otherwise required timely, completely, and accurately Furthermore, the due date for furnishing to obtain a TIN. The comment observed collect necessary data from partners to statements to affected partners must be that foreign persons generally are not comply with requirements and avoid fixed for all pass-through partners for required to obtain a U.S. TIN, the risk that the IRS would deny a push the IRS to ensure statements are particularly if they will not claim the out election due to incomplete or furnished timely and payments are benefits of a U.S. tax treaty. inaccurate or untimely data. timely made. In addition, the ultimate Proposed § 301.6226–3(e)(3)(iii) As discussed earlier in this section of affected partners are obligated to file required each statement furnished by a the preamble, maintaining the ability to and pay additional reporting year tax by pass-through partner to include the require additional information on forms, the extended due date of the audited correct TIN of the affected partner. This instructions, or other guidance gives the partnership. Extending the due date for information is critical to the IRS the flexibility to adapt statements furnishing statements to affected administration of the push out regime without having to amend the partners for any pass-through partner because it allows the IRS to identify the regulations. At the same time, the IRS would cause delays for upper tier person to whom the statement is recognizes the need of taxpayers to affected partners and potentially subject furnished, and it provides the IRS with know of the information required to not ultimate affected partners to penalties the ability to match the adjustments on jeopardize compliance with the for filing or paying additional reporting that statement with the return filed by regulations. The IRS plans to develop year tax more than 30 days after the the affected partner. In response to this and release drafts of forms and extended due date. Therefore, the comment, however, the final regulations instructions for public inspection as regulations do not provide for require that a push out statement soon as possible. discretionary extensions of the time furnished under § 301.6226–3(e) include In addition to the changes described period that was set forth in proposed the partner’s TIN ‘‘or alternative form of earlier in this Summary of Comments § 301.6226–3(e)(3)(ii). identification as prescribed by forms, and Explanation of Revisions, two other Another comment observed that the instructions, or other guidance.’’ See clarifying changes were made to proposed regulations did not specify also § 301.6226–2(e) (imposing the same § 301.6226–3. First, § 301.6226– who at the IRS must receive the requirement for push out statements 3(e)(3)(iii)(M) was clarified to provide statements furnished by a pass-through furnished to reviewed year partners). In that the information required to be partner and recommended that the final addition, the election under § 301.6226– included in statements furnished to regulations clearly state to whom at the 1 by the audited partnership must affected partners regarding the IRS pass-through partner statements include the TIN ‘‘or alternative form of applicability of penalties, additions to should be directed. This comment was identification as prescribed by forms, tax, or additional amounts are the not adopted, but the regulations were instructions, or other guidance’’ for each determinations made at the audited revised to provide that a pass-through reviewed year partner of the partnership level pertaining to the partner must file and furnish statements partnership. See § 301.6226–1(c)(3)(ii). applicability of penalties, additions to to its affected partners in accordance The addition of the quoted language in tax, or additional amounts. This change with forms, instructions, or other each section contemplates that there reinforces the notion that the guidance prescribed by the IRS. may be situations in which an applicability of penalties is determined Providing the method for filing and alternative form of identification for at the audited partnership level and that furnishing statements in forms, certain partners is warranted. penalties attach to adjustments as they instructions, and other guidance Accordingly, as the IRS gains are pushed out through the tiers. An provides the IRS with the flexibility to experience with the centralized affected partner that pays an imputed change the filing and furnishing partnership audit regime, the IRS may underpayment or additional reporting procedures as appropriate and necessary allow for the use of an alternative form year tax independently determines the without needing to amend the of identification through forms, amount of any penalty applicable to

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adjustments that are taken into account (9)). Section 6226(b)(4)(A)(ii)(II) does applied by a pass-through partner was by the affected partner. not explicitly carve out section incorrectly applied, the IRS would have In addition, § 301.6226–3(e)(4)(iv)(B) 6225(c)(8), which provides that any to expend time and resources to correct was clarified to provide that when modification of the imputed the incorrectly claimed modification, determining interest on an imputed underpayment amount under section resulting in additional delays in the underpayment paid by a pass-through 6225(c) shall be made only upon collection of amounts due as a result of partner, the imputed underpayment is approval of such modification by the the examination and the push out treated as if it were a correction amount Secretary. Consistent with section election. for the first affected year. This change 6225(c)(8), proposed § 301.6226– conforms the language in § 301.6226– III. Payment of Additional Reporting 3(e)(4)(iii) only allows modifications Year Tax by Affected Partners 3(e)(4)(iv)(B) with the language in approved by the IRS under proposed § 301.6226–3(c) regarding interest on § 301.6225–2 to be taken into account in Proposed § 301.6226–3(e)(3)(iv) correction amounts. calculating an imputed underpayment provided that affected partners that are not pass-through partners must take into II. Modifications Available to Pass- with respect to a pass-through partner. Modifications approved by the IRS account their share of adjustments Through Partner Paying an Imputed reflected on a statement furnished under Underpayment under § 301.6225–2 are only those modifications requested by the audited proposed § 301.6226–3(e)(3) in If a pass-through partner does not partnership and approved during the accordance with proposed § 301.6226– furnish statements, the pass-through administrative proceeding with respect 3(e). When taking into account the partner must compute and pay an to the audited partnership. See adjustments, an affected partner that is imputed underpayment in accordance § 301.6225–2(b). A pass-through partner not a pass-through partner bases its with proposed § 301.6226–3(e)(4). may not use modifications that were not reporting year on the date the audited Section 6226(b)(4)(A)(ii)(II); proposed requested or approved in the partnership furnished its statements to § 301.6226–3(e)(2). Pursuant to administrative proceeding with respect its reviewed year partners. As a result, proposed § 301.6226–3(e)(4)(iii), this to the audited partnership in calculating the reporting year of an affected partner imputed underpayment is computed in its imputed underpayment under that is not a pass-through partner will be the same manner as an imputed proposed § 301.6226–3(e)(4). the same taxable year as the reporting underpayment under section 6225 and year of a reviewed year partner that is § 301.6225–1. In calculating an imputed Allowing a pass-through partner to also not a pass-through partner. underpayment under proposed apply modifications that were not As discussed in section 1 of the § 301.6226–3(e)(4)(iii), a modification is previously requested or approved in Explanation of Provisions in the taken into account if it was approved by calculating its imputed underpayment is preamble to the December 2017 NPRM, the IRS under § 301.6225–2 with respect contrary to the centralized nature of an there may be circumstances in which a to the pass-through partner (or any administrative proceeding under the statement is not furnished to an affected relevant partner holding its interest in centralized partnership audit regime. partner that is not a pass-through the audited partnership through the Partnership adjustments are determined partner in time for the partner to report pass-through partner) and it is reflected at the partnership level. Section 6221(a). and pay the additional reporting year on the statement furnished to the pass- The imputed underpayment is a tax by the unextended due date of the through partner. Any modification that partnership-related item and therefore partner’s return for the reporting year. was not approved by the IRS under modifications to the imputed To account for this situation, proposed § 301.6225–2 may not be taken into underpayment are determined at the § 301.6226–3(e)(3)(iv) provided that the account. Proposed § 301.6226– partnership level. The modification IRS will not impose any additions to tax 3(e)(4)(iii). provisions under § 301.6225–2 are the under section 6651 related to any One comment suggested that it was appropriate method for determining additional reporting year tax if an unclear under proposed § 301.6226– whether and to what extent a affected partner that is not a pass- 3(e)(4) whether a pass-through partner modification should be allowed. through partner reports and pays any that elects to pay an imputed Allowing pass-through partners to raise, additional reporting year tax within 30 underpayment is only permitted to for the first time, modifications during days of the extended due date for the make modifications that are included on the push out is inconsistent with return for the adjustment year of the the information statement furnished to making such determinations at the audited partnership. the pass-through partner or whether the partnership level. Allowing such One comment recommended that the pass-through partner also may make modifications would create significant 30-day period under proposed modifications based on the pass-through administrative burdens for the IRS. For § 301.6226–3(e)(3)(iv) should be partner’s own partners (to the extent one, the IRS would have to expend extended to at least 60 days and that such modification is not already increased time and resources to review there be a mechanism for requesting and reflected on the information statement). any modifications applied during push obtaining an extension of this deadline The comment recommended that the out that were not previously evaluated when needed. This comment was not pass-through partner be permitted to and approved during the modification adopted. make modifications based on its own process at the audited partnership level. While it may be difficult to accurately partners to the extent the pass-through This concern would be exacerbated in compute and pay the additional partner would be permitted to make situations where there are multiple tiers reporting year tax in situations where modifications under section 6225 if it of entities applying multiple types of the affected partner receives the were the partnership directly under additional modifications. For instance, a statement close in time to the extended audit. This comment was not adopted. pass-through partner might raise again a due date of the reporting year return, the Section 6226(b)(4)(A)(ii)(II) provides modification that was rejected by the affected partner has options available to that a partnership may compute and pay IRS at the audited partnership level mitigate any additions to tax under an imputed underpayment under rules during the modification process, section 6651. First, the regulations similar to the rules of section 6225 causing further administrative delay and under § 301.6226–3(e)(3)(iv) provide a (other than section 6225(c)(2), (7), and burden. Furthermore, if a modification 30-day period in which the IRS will not

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impose a section 6651 penalty. Second, be added to § 301.6226–3(h) to show the amount and the additional reporting the affected partner may make an proper treatment of two situations. The year tax can be less than zero. estimated tax payment prior to the due first situation involved the IRS When the partner in the first date for the reporting year and use that approving a modification based on a hypothetical calculates the correction payment as a credit against any partner filing an amended return, the amount for the year that was amended, potential liability for the additional partnership challenging the IRS’s the partner recomputes its tax for the reporting year tax to avoid failure to pay adjustment in Tax Court, and the year by starting with the amount of tax penalties. amount of the adjustment being shown on the amended return, which Third, the affected partner may also subsequently reduced. The second had been based on the full amount of request that any additions to tax under situation involved the IRS determining the adjustment (prior to its reduction by section 6651 be abated due to at the partnership level a 20 percent the court decision). The partner then reasonable cause. Nothing in the accuracy-related penalty with respect to determines the amount the partner’s regulations under the centralized the partnership adjustments and the IRS chapter 1 tax would have increased or partnership audit regime alters the approving a modification based on a decreased were the reduced adjustment mechanisms by which a taxpayer may partner’s status as a tax-exempt entity. taken into account for that year. If the raise a reasonable cause defense in The comment suggested that the partner’s tax for the amended year response to a proposed penalty. Existing example illustrate how the amount of decreases as a result of the reduced regulations under § 301.6651–1(c)(1) the penalty is calculated in this adjustment, that decrease in tax and the Internal Revenue Manual situation after allowance for the produces a negative correction amount, provide procedures for raising a modification with respect to the tax- which in turn produces a negative reasonable cause defense to avoid an exempt entity and how the penalty is additional reporting year tax. The addition to tax under section 6651. If an allocated among all partners, including negative additional reporting year tax addition to tax under section 6651 is the tax-exempt entity. would then reduce the partner’s tax for asserted because a taxpayer did not pay These hypotheticals were described the reporting year. the entire additional reporting year tax within the portion of the comment The second situation is addressed by within 30 days of the extended due date addressing section 6226. Therefore, proposed § 301.6226–3(d) as previously of the audited partnership’s adjustment notwithstanding that the comment did revised in the December 2017 NPRM. As year return, the taxpayer may follow not explicitly state that the partnership discussed earlier in this section of the those existing procedures to raise any in the hypothetical made a push out preamble, proposed § 301.6226–3(d)(2) reasonable cause and good faith defense election, for purposes of addressing provided that each reviewed year that may be applicable to the taxpayer’s these comments it is assumed that the partner calculates its penalty amount by delay in payment. partnership did make the push out treating the correction amounts election. After careful consideration, the determined under § 301.6226–3(b) as if iv. Qualified Investment Entities and Treasury Department and the IRS have they were underpayments or MLPs declined to add these examples because, Proposed § 301.6226–3(b)(4) provided as described in this section of the understatements for the first affected rules for qualified investment entities preamble, both situations describe fact year or any intervening year. This rule (QIEs), such as real estate investment patterns that are addressed by a straight is different from the rule initially set trusts and regulated investment forward application of the proposed forth in former proposed § 301.6226– companies, to utilize the deficiency regulations, as revised in the December 2(f)(3). Under the former rule, to which dividend procedures under section 860 2017 and August 2018 NPRMs, and thus the comment’s recommendation related, when taking into account the the examples would not help clarify any each partner was allocated their share of adjustments under section 6226(b). One aspect of the rules. the penalty that was calculated at the comment recommended that the The first situation is addressed by partnership level. Under the rule in Treasury Department and the IRS adopt proposed § 301.6226–3(b)(2) and (3), proposed § 301.6226–3(d), however, a the rules as proposed in § 301.6226– which provided that in calculating a partner’s penalty calculation is based on 3(b)(4) without change in the final correction amount, decreases in tax the characteristics of, and facts and regulations. This comment was adopted. should be taken into account and that circumstances applicable to, the Another comment recommended that amounts shown on amended return reviewed year partner. Accordingly, in the case of an MLP, the safe harbor filed during modification should be while the applicability of the accuracy- calculation for a partner should take accounted for in the calculation. As related penalty in the second into account the partner’s share of described earlier in section C.i. of this hypothetical described by the comment specified passive activity losses within preamble, proposed § 301.6226–3(b)(2) was determined at the partnership level, the meaning of section 6225(c)(5)(B). As and (3) was revised in the August 2018 if as a result of taking into account the discussed earlier in this section of the NPRM to reflect the amendments to adjustments under § 301.6226–3(b), the preamble, the safe harbor amount was section 6226(b) by the TTCA. As tax-exempt entity would not have an removed from the regulations in the amended, section 6226(b) provides that underpayment or understatement for December 2017 NPRM, no comments when a reviewed year partner takes into which a penalty was applicable, the were received regarding its removal, and account pushed out adjustments, the penalty amount calculated by the tax- the final regulations do not include a partner’s chapter 1 tax for the reporting exempt entity pursuant to § 301.6226– safe harbor amount. Accordingly, this year is adjusted by the amounts the 3(d)(2) would be zero. Whether comment was not adopted. partner’s chapter 1 tax for the first modification was requested or approved affected year or any intervening year with the tax-exempt entity would not v. Examples Under Proposed would increase or decrease if the affect this determination. § 301.6226–3(h) partner’s share of the adjustments were The same comment also Proposed § 301.6226–3(h) provided taken into account in the first affected recommended adding an example to examples that illustrated the rules of year. As a result, under proposed show the proper application of partner proposed § 301.6226–3. One comment § 301.6226–3(b)(2) and (3) as revised in and partnership-level tax attributes to recommended that additional examples the August 2018 NPRM, a correction the calculation of a correction amount

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for an intervening year. This elects to make a push out election with See section 4.B. of the preamble to the recommendation was also not adopted. respect to the $40 imputed August 2018 NPRM. Former proposed § 301.6241–1(a)(10) underpayment and furnishes a 5. Administrative Adjustment Requests had defined the term tax attribute to statement to F reflecting F’s share of the include both the tax attributes of the $200 partnership adjustment and Four comments were received partnership and the tax attributes of its reflecting the approval of F’s amended concerning administrative adjustment partners. This definition was changed in return modification. requests under section 6227. The the August 2018 NPRM to remove Former proposed § 301.6226–3(g) had comments addressed the following references to the partnership or the provided that F computes its correction topics: (1) The requirement that the partner. This change allows ‘‘tax amounts for the first affected year and partnership representative must sign an attribute’’ to apply to the partnership or the intervening years and that F AAR; (2) the ability to report multiple to a partner depending on the particular ‘‘computes any additional chapter 1 tax imputed underpayments in a single context within which it is used. See for those years using the returns for AAR; (3) the modifications available in section 11.A. of the preamble to the 2020, 2021, and 2022 taxable years as the case of an AAR; (4) how partners August 2018 NPRM. As a result, the amended during the modification take into account adjustments requested definition of tax attribute in proposed process.’’ One comment found the in an AAR; (5) the availability of the § 301.6241–1(a)(10), as revised, did not quoted language ambiguous and safe harbor amount; (6) the application refer to either the partnership or its recommended the language be revised of section 905(c); and (7) how partners. to provide that ‘‘F’s computation will partnerships that have elected out of the Former proposed § 301.6226–3(b)(3) take into account the additional chapter centralized partnership audit regime file had provided that an intervening year 1 tax that F reported and paid pursuant amended returns. In addition to correction amount was derived by to the modification process on amended addressing the comments, this section of recomputing a partner’s taxable income returns for the 2020, 2021, and 2022 the preamble explains a change to the by taking into account any adjustments taxable years.’’ This comment has been rules regarding whether an AAR is valid to tax attributes. After the change to the adopted. if it fails to include required statements definition to tax attribute, proposed Although F takes into account the and interest with respect to imputed § 301.6226–3(b)(3) was revised to make chapter 1 tax F reported and paid with underpayments reported on an AAR. clear that in the context of calculating its amended returns, F still must A. Requirement That the Partnership an intervening year correction amount, compute the correction amounts for Representative Signs an AAR it is the ‘‘tax attributes of the partner’’ each year under § 301.6226–3(b). F that are relevant, not the tax attributes cannot assume F’s additional reporting Proposed § 301.6227–1(c) provided of the partnership. As a result, under year tax is zero because of the fact F the form and manner for making an proposed § 301.6226–3(b)(3) as revised filed an amended return and took into AAR under the centralized partnership in the August 2018 NPRM, partnership- account the adjustments during the audit regime, including the rule that an level tax attributes no longer factor into modification process. For example, F AAR must be signed under penalties of the calculation of an intervening year may have inadvertently taken the perjury by the partnership correction amount. See proposed adjustments into account incorrectly representative. One comment § 301.6226–3(h), Example 7; section 4.A. when filing its amended returns or filed recommended that the regulations of the preamble to the August 2018 a subsequent amended return, and as a remove the requirement that the NPRM. Given these revisions, an result F may compute an additional partnership representative sign an AAR example showing the application of reporting year tax that is greater than (or and instead allow any person partnership-level tax attributes would possibly less than) zero when F authorized to sign the original no longer be accurate for computing an performs the calculation under partnership return to sign the AAR. This intervening correction amount under § 301.6226–3(b) for the reporting year. comment was not adopted. § 301.6226–3(b)(3). The comment also recommended Under section 6223(b), the The Treasury Department and the IRS changing the language ‘‘[t]he time to file partnership and all partners of such have also declined to add an example a petition expires on’’ in Examples 2–4 partnership are bound by actions taken illustrating the application of a partner’s and 6–9 under proposed § 301.6226– under the centralized partnership audit tax attributes to the calculation of its 3(h) to ‘‘[t]he last day to file a petition regime by the partnership. See correction amount for an intervening is.’’ Under § 301.6226–2(b)(1)(i), if a § 301.6223–2(a). The filing of an AAR year. Creating an example involving the petition is not filed under section 6234, under section 6227 is an action under tax attributes of a specific partner would the adjustments become finally the centralized partnership audit necessitate a description of that determined upon the expiration of the regime. Under section 6223(a), the particular partner’s tax profile and time to file a petition under section partnership representative has the sole would require a number of assumptions 6234. Although this is determined in authority to act on behalf of the that would strip the example of its relation to the last day to file a petition partnership under the centralized utility. under section 6234, the language in the partnership audit regime. Consequently, Example 5 of proposed § 301.6226– examples mirrors the regulatory only the partnership representative has 3(h) described a situation in which the language under § 301.6226–2(b)(1)(i). the authority to file an AAR under IRS determines a $200 partnership Changing the language in the examples section 6227, and the final regulations adjustment with respect to taxable year to differ from the language in the rule maintain the requirement that the 2020 and a resulting $40 imputed could create confusion and ambiguity. partnership representative sign an AAR. underpayment. During the modification Accordingly, this comment was not The comment expressed concern that, process, Partner F files amended returns adopted. in some circumstances, obtaining the for 2020, 2021, and 2022 taking into Lastly, several comments noted signature of the partnership account F’s share of the $200 typographical errors and incorrect cross- representative could be difficult or partnership adjustment, and the IRS references in the examples under former impossible. For example, if the approves that modification. See proposed § 301.6226–3. These errors partnership representative is deceased § 301.6225–2(d)(2). The partnership were fixed in proposed § 301.6226–3(h). or where a partnership representative

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whose designation is being revoked with § 301.6227–3. Proposed Notwithstanding these revisions, the refuses to sign the AAR. The regulations § 301.6227–2(c). regulations continue to refer to the form under section 6223 and 6227 One comment observed that it was for filing an AAR and its instructions for accommodate the concern illustrated in unclear whether the references to ‘‘an purposes of instructing how a these examples. Under § 301.6223– imputed underpayment’’ in proposed partnership requests adjustments in an 1(e)(2)(ii), a partnership may revoke a § 301.6227–2(a)(1) and to ‘‘the imputed AAR that result in an imputed designation of a partnership underpayment’’ in proposed underpayment. representative by filing a valid AAR in § 301.6227–2(c) imply that there can be only one imputed underpayment in an C. Modifications Available in the Case accordance with section 6227. The of an AAR revocation must include a designation AAR, or whether more than one of a successor partnership imputed underpayment can be Proposed § 301.6227–2(a)(2) provided representative. § 301.6223–1(e)(1). Both calculated in an AAR. The comment that a partnership may apply the revocation and the designation are recommended the regulations should modifications to the amount of the effective on the date the partnership clarify that a single AAR can result in imputed underpayment determined files the AAR. § 301.6223–1(e)(3). multiple imputed underpayments, some under proposed § 301.6227–2(a)(1) using only certain, enumerated Proposed § 301.6227–1(a) provided of which can be paid while others are modifications as described in proposed that when the partnership changes the pushed out, and that adjustments that § 301.6225–2 or as provided in forms, designation of the partnership do not result in an imputed instructions, or other guidance representative in conjunction with the underpayment can be pushed out. Neither section 6227 nor the prescribed by the IRS with respect to filing of an AAR in accordance with regulations thereunder prohibit a AARs. A partnership may not modify an § 301.6223–1(e), the change in partnership from filing multiple AARs imputed underpayment resulting from designation is treated as occurring prior for the same taxable year to request adjustments requested in an AAR except to the filing of the AAR. Under this rule, multiple adjustments to partnership- as described in proposed § 301.6227– the prior partnership representative is related items. To allow the IRS to 2(a)(2). revoked and a new partnership respond to issues that arise in Proposed § 301.6225–2(d)(10) representative is designated prior to the implementing the new partnership audit provided a catch-all provision for other time the AAR is filed, with the result regime, proposed § 301.6227–1(c) modifications under which a that the newly designated partnership required that an AAR must be filed with partnership may request a modification representative is the partnership the IRS in accordance with the forms, not described in proposed § 301.6225– representative of record at the time the instructions, and other guidance 2(d), and the IRS will determine AAR is filed. This rule was designed to prescribed by the IRS. The current whether such modification is accurate address the circumstances described by version of the form prescribed by the and appropriate. Similarly, proposed the comment when it may be difficult to IRS for filing an AAR is not designed to § 301.6225–2(d)(10) provided that obtain the signature of the prior accommodate the reporting of multiple additional types of modifications, and partnership representative and to make imputed underpayments. A partnership the documentation necessary to clear that it is the newly designated may file multiple AARs to allocate substantiate such modifications, may be partnership representative that signs an adjustments into separate imputed set forth in forms, instructions, or other AAR. Because § 301.6227–1(a), in underpayments. For example, the guidance. connection with the regulations under partnership may file one AAR reporting One comment suggested that the section 6223, adequately address the an imputed underpayment that the regulations should be more flexible concerns raised by the comment, the partnership pays, while filing another regarding the types of modifications that comment was not adopted. AAR reporting an imputed are allowed in the case of an AAR. B. Multiple Imputed Underpayments underpayment for which the Specifically, the comment partnership elects to push out the recommended that proposed Proposed § 301.6227–1(a) provided adjustments associated with that § 301.6227–2(a)(2) be revised to allow that when filing an AAR, the imputed underpayment. Accordingly, a for the catch-all provision under partnership must determine whether the partnership, by filing multiple AARs, proposed § 301.6225–2(d)(10) on the adjustments requested in the AAR result can achieve the result requested by the condition that the IRS approves of the in an imputed underpayment. Under comment—that is, the ability to pay an relevant modification upon review of proposed § 301.6227–2(a)(1), the imputed underpayment with respect to the AAR. This comment was not determination of whether adjustments certain adjustments and push out other adopted. requested in an AAR result in an adjustments associated with a different Both proposed § 301.6225–2(d)(10), in imputed underpayment and the imputed underpayment. the context of an audit, and proposed determination of the amount of the In response to the comment, the § 301.6227–2(a)(2), in the context of an imputed underpayment is made in regulations have been revised to refer to AAR, provide that the IRS may set forth accordance with the rules under ‘‘an’’ or ‘‘any’’ imputed underpayment, additional modifications in forms, § 301.6225–1. Generally, a partnership as appropriate, to accommodate future instructions, or other guidance. To the must pay any imputed underpayment cases in which an AAR may result in extent the comment was recommending determined under § 301.6227–2(a) more than one imputed underpayment. that adoption of the § 301.6225–2(d)(10) resulting from the adjustments In addition, §§ 301.6227–2(c) and catch-all provision in § 301.6227–2(a)(2) requested in an AAR on the date the 301.6227–3(a) have been revised to would allow the IRS to set forth other partnership files the AAR. Proposed clarify that in the case of an election to modifications not specifically described § 301.6227–2(b). In lieu of paying the have the reviewed year partners take in proposed § 301.6227–2(a)(2), that imputed underpayment under into account the adjustments in an AAR, ability is already provided for by the § 301.6227–2(b), the partnership may such partners take into account only plain language of § 301.6227–2(a)(2). elect to have each reviewed year partner those adjustments that are associated To the extent the comment was take into account the adjustments with the imputed underpayment to recommending a rule in which a requested in the AAR in accordance which the election relates. partnership could request a

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modification in an AAR on the § 301.6227–2(a)(2) provides the ability the additional reporting year tax to condition that modification is only for the IRS to expand the set of allowed reduce a partner’s chapter 1 tax for the allowed upon approval by the IRS, the modifications through the use of forms, reporting year. comment was not adopted. The final instructions, or other guidance. Finally, minor revisions were made to regulations adopt the rule that a clarify that any adjustment that does not D. Partners Taking Into Account result in an imputed underpayment is partnership may not modify an imputed Adjustments Requested in an AAR underpayment resulting from taken into account by reviewed year adjustments requested in an AAR except Former proposed § 301.6227–3 partners. included a reserved paragraph regarding for the modifications described in E. Availability of Safe Harbor for proposed § 301.6227–2(a)(2). Under how a reviewed year partner that is a pass-through partner takes into account Partners Taking Into Account proposed § 301.6227–2(a)(2)(i), the Adjustments partnership is not required to seek its share of adjustments requested in an approval from the IRS prior to applying AAR. In response to the June 2017 The June 2017 NPRM requested modifications to the amount of any AAR NRPM, one comment recommended that comments on whether the election to imputed underpayment. This rule the regulations should allow a pass- pay a safe harbor amount under former permits a partnership to determine an through partner to push out its share of proposed § 301.6226–3 should be imputed underpayment that results adjustments to the next tier of partners. available in the case of a partner that from the adjustments requested in an The December 2017 NPRM contained must take into account adjustments AAR and apply modifications when proposed rules under § 301.6227–3 requested in an AAR under proposed calculating the amount of the imputed allowing for pass-through partners to § 301.6227–3. One comment underpayment the partnership needs to take into account adjustments requested recommended that the regulations pay when filing the AAR. The Treasury in an AAR by either making a payment require a partnership filing an AAR to Department and the IRS have or pushing out the adjustments to the calculate a safe harbor amount for each determined that this procedure is more next tier of partners, similar to the rules partner required to take into account the administrable for the IRS and allows under proposed § 301.6226–3(e). The adjustments requested in the AAR and partnerships to more effectively file rules under proposed § 301.6227–3 were include such safe harbor amount in the AARs and take any adjustments into further revised in the August 2018 statement furnished to the partner. account. The partnership does not have NPRM to reflect the amendments by For the reasons discussed in section 4 section 204 of the TTCA and the to wait for an IRS determination of the preamble to the December 2017 corresponding changes to proposed regarding specific modifications before NPRM, the safe harbor amount was § 301.6226–3(e). See section 5 of the determining the amount of the imputed removed from the regulations. No preamble to the August 2018 NPRM. As underpayment as modified, which comments were received regarding its a result, the comment was adopted in would significantly hamper the AAR removal, and the final regulations do the August 2018 NPRM and is also process. not include a safe harbor amount. included in the final regulations. Accordingly, this comment was not Because the partnership applies Example 2 under proposed adopted. modifications prior to the IRS reviewing § 301.6227–3(b)(2), regarding how and approving such modifications, the partners other than pass-through F. Application of Section 905(c) specifically enumerated modifications partners take into account AAR One comment recommended rules for in the regulations are limited to the adjustments, was revised to remove the how a partnership subject to the types of modifications for which the IRS language indicating that the partner may centralized partnership audit regime can already has procedures and systems in make a claim for refund with respect to fulfill the requirements of section place. This permits the IRS, when it the overpayment of $25. Instead, the 905(c), including the rules relating to reviews an AAR, to utilize those final regulations provide that the the assessment and collection of interest procedures and systems to determine partner may make a claim for refund on certain refunds of creditable foreign the accuracy and appropriateness of the with respect to ‘‘any overpayment.’’ taxes. The final regulations under modification that was applied in the Section 301.6227–3(b)(1) provides that section 6227 do not provide rules AAR. The limitation on the types of nothing in the rules under § 301.6227– regarding the application of section modifications, in addition to the 3 entitles any partner to a refund of 905(c), but do include a reserved detailed information required under chapter 1 tax to which such partner is paragraph regarding notice of change to § 301.6227–2(a)(2)(ii), is designed to not entitled. Whether an overpayment amounts of creditable foreign tax provide partnerships the ability to exists is determined under provisions of expenditures. See § 301.6227–1(g). The reasonably modify an imputed the Code and relevant case law outside recommendations put forth by the underpayment resulting from the scope of these regulations. comment remain under consideration. adjustments requested in an AAR while Generally, an overpayment and the not creating undue delay for the amount of a refund of an overpayment G. Partnerships That Have Elected Out partnership and its partners to take the cannot exceed the amount of tax paid. of the Centralized Partnership Audit adjustments into account. Also, by See section 6511(b)(2), Jones v. Liberty Regime providing certainty regarding the Glass, 332 U.S. 524, 531 (1947). No One comment suggested that the permissible types of modifications, a refund or credit can be made unless it regulations address how a partnership partnership will be able to efficiently has first been determined that the that has a valid election under section use its time and resources in taxpayer has made an overpayment of 6221(b) in effect for a particular taxable determining whether it will pay an tax for the period at issue. Lewis v. year should report changes to its imputed underpayment or elect to have Reynolds, 284 U.S. 281, 283 (1932). original partnership return from that its partners take into account the Example 2 was also revised to clarify year. Section 6227 is the mechanism for adjustments. Finally, as the IRS gains that the partner’s chapter 1 tax for 2022 partnerships that are subject to the more experience with modifications in is ¥$25, that is, negative $25. This centralized partnership audit regime to connection with an AAR under the change conforms Example 2 to the rules file an AAR to correct errors on a centralized partnership audit regime, under § 301.6226–3(b) which allow for partnership for a prior year. A

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partnership that has made a valid statements to its affected partners. This § 301.6231–1(b)(1) was issued, section election under section 6221(b) in rule applies to both adjustments that do 206(h) of the TTCA amended section accordance with § 301.6221(b)–1 is not not result in an imputed underpayment 6231(b) to provide that a NOPPA shall subject to such regime. Accordingly, a pursuant to § 301.6225–1(f)(1)(i) and not be mailed later than the date partnership that has elected out of the adjustments that do not result in an determined under section 6235(a)(1). centralized partnership audit regime is imputed underpayment pursuant to Prior to this amendment, the statute did not subject to section 6227 and therefore § 301.6225–1(f)(1)(ii). This rule also not limit the period for the IRS to does not file an AAR to correct errors on applies in situations where the pass- propose adjustments under the its original return. The manner in which through partner pays an imputed centralized partnership audit regime. a partnership that has elected out underpayment. The final regulations Because former proposed § 301.6231–1 should report changes to its original under § 301.6227–1(e)(2) additionally comported with the TTCA amendments return is outside the scope of these clarify that when a partnership pays an to section 6231, former proposed regulations. imputed underpayment and there are § 301.6231–1 was not revised when the adjustments that did not result in that regulations were re-proposed in the H. Whether an AAR Is Valid Without imputed underpayment pursuant to August 2018 NPRM. Statements § 301.6225–1(f)(1)(i), only the One comment received prior to the Proposed § 301.6227–1(c)(2) provided adjustments that did not result in an issuance of former proposed that a valid AAR must include the imputed underpayment are to be § 301.6231–1 and before the TTCA adjustments requested, the statements included in the statements to its affected amendments to section 6231(b) described in § 301.6227–1(e) if a partners. recommended that the regulations reviewed year partner is required to take clarify that a NOPPA must be issued into account the adjustments requested, J. Interest With Respect to an Imputed within the three-year period specified in and other information prescribed by the Underpayment Resulting From AAR section 6235(a)(1). Because the statute IRS in forms, instructions, or other Adjustments and the plain language of proposed guidance. The final regulations clarify Proposed § 301.6227–2(b)(2) provided § 301.6231–1 reflect the rule suggested that in the case of a failure to provide that interest on an imputed by this comment, the final regulations the information required under underpayment resulting from adopt the language of the proposed § 301.6227–1(c)(2), the IRS may, but is adjustments requested in an AAR is regulations without change. not required to, invalidate an AAR or determined under chapter 67 of the Section 6227(c) provides that a readjust items that were adjusted in the Code for the period beginning on the partnership has three years from the AAR. date after the due date of the later of the filing of the partnership Conversely, the word ‘‘valid’’ was partnership return for the reviewed year return or the due date of the partnership added to § 301.6227–2(b)(1) to clarify (determined without regard to return (excluding extensions) to file an that only a valid election under extension) and ending on the earlier of AAR for a taxable year. However, a § 301.6227–2(c) turns off the the date payment of the imputed partnership may not file an AAR for a partnership’s obligation to pay an underpayment is made, or the due date partnership taxable year after the IRS imputed underpayment resulting from of the partnership return for the has mailed a NAP under section 6231 adjustments requested in an AAR. adjustment year. In the case of any with respect to that taxable year. Section I. Adjustments That Do Not Result in an failure to pay an imputed underpayment 6227(c); § 301.6227–1(b). Proposed Imputed Underpayment by the due date of the partnership return § 301.6231–1(f) provided that the IRS for the adjustment year, interest is may, without consent of the Under § 301.6225–1(f)(1), two determined in accordance with section partnership, withdraw any NAP or situations occur where there may be 6233(b)(2). Proposed § 301.6227–2(b)(2). NOPPA, and any NAP or NOPPA that adjustments that do not result in an To conform the rules under proposed has been withdrawn by the IRS has no imputed underpayment. Under § 301.6227–2(b)(2) with the rules under effect for purposes of subchapter C of § 301.6225–1(f)(1)(i), a partnership proposed §§ 301.6232–1(b), chapter 63. If the IRS withdraws a NAP adjustment does not result in an 301.6233(a)–1(b), and 301.6233(b)–1(c), with respect to a partnership taxable imputed underpayment if the result of the final regulations provide that year under proposed § 301.6231–1(f), netting with respect to any grouping or interest on an imputed underpayment the prohibition under section 6227(c) on subgrouping that includes the particular resulting from adjustments requested in filing an AAR after the mailing of a NAP partnership adjustment is a net negative an AAR ends on the date the AAR is no longer applies with respect to such adjustment. Under § 301.6225–1(f)(1)(ii), filed. In the case of any failure to pay taxable year. a partnership adjustment does not result an imputed underpayment on the date One comment stated that the rule in an imputed underpayment if the the AAR is filed, interest is determined under proposed § 301.6231–1(f) lifting calculation under § 301.6225–1(b)(1) in accordance with section 6233(b)(2) the prohibition on filing an AAR after a resulted in an amount that is zero or less and § 301.6233(b)–1(c). NAP is meaningless if the three-year than zero. Proposed § 301.6227–3(c)(2) period of limitations under section provided rules regarding how a pass- 6. Notices of Proceedings and 6227(c) to file an AAR has already through partner takes into account Adjustments expired. The comment suggested that adjustments that do not result in an Former proposed § 301.6231–1(b)(1) the language in proposed § 301.6231– imputed underpayment. The proposed provided that a notice of proposed 1(f) be revised to provide that a NAP rule was unclear as to whether the rule partnership adjustment (NOPPA) is that has been withdrawn by the IRS has applied to both types of situations. The timely if it is mailed before the no effect for purposes of subchapter C final regulations under § 301.6227– expiration of the period for making or chapter 63 ‘‘except for suspension of 3(c)(2) clarify that a pass-through adjustments under section 6235(a)(1), the period of limitations under section partner must take into account AAR including any extensions of that period 6227 as provided in § 301.6227–1(b).’’ adjustments that, with respect to that under section 6235(b) and after applying The comment suggested a pass-through partner, do not result in an any of the special rules in section corresponding change to proposed imputed underpayment by furnishing 6235(c). After former proposed § 301.6227–1(b) to provide that the

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period of limitations for filing an AAR withdrawal of the NAP remains in assessment procedures under is suspended while a NAP is effect. To conform these two sets of § 301.6232–1(d)(1)(i) will be narrowly outstanding. These suggestions have not rules, the final regulations under construed and applied. The comment been adopted. § 301.6231–1(f) clarify that a withdrawn suggested as an example that the First, section 6227 does not authorize NAP has no effect for purposes of regulations make clear that an the Treasury Department or the IRS to subchapter C of chapter 63 except as assessment against a partner of a suspend the period of limitations within described in § 301.6223–1(d)(2) and partnership-partner will not be treated which a partnership may file an AAR. (e)(2). as a mathematical or clerical error By way of contrast, other statutory In addition, proposed § 301.6231–1(f) where the partner has reported the items provisions within subchapter C of was revised to clarify that if the IRS at issue consistently with the chapter 63, such as section 6235(b) and withdraws a NAP or NOPPA, the NAP partnership-partner, even though the section 6225(c)(7), do provide authority or NOPPA is treated as if it were never partnership-partner may not have been for the IRS to extend certain time issued, in addition to the NAP or consistent with the partnership in periods. The absence of similar NOPPA not having any effect for which it is a partner. These suggestions authority in section 6227 indicates the purposes of subchapter C of chapter 63. were not adopted. IRS does not have the authority to This change conforms the language of Nothing in the statute indicates that suspend the period of limitations under the final regulations under § 301.6231– section 6232(d) should be construed or section 6227(c). 1(f) more closely with the language of applied to a particular degree. More Moreover, because of the required section 6227(c). specifically, a rule providing that timing of an examination under the Lastly, the final regulations under section 6232(d) will be applied and centralized partnership audit regime, it § 301.6231–1(f) clarify that the construed narrowly would be vague and is likely that in many cases when a NAP withdrawal of a NAP or NOPPA not give helpful guidance to taxpayers is withdrawn, there will still be time left obviates the limitation under or the IRS. For these reasons, the on the period of limitations to file a § 301.6222–1(c)(5) providing that a comment’s suggestion regarding timely AAR. In order for a NOPPA to be partner may not treat an item construing and applying section 6232(d) timely mailed, it generally must be inconsistently after a NAP has been narrowly was not adopted, and the issued within three years of the date on mailed with respect to a partnership regulations do not include a statement which the partnership return for such taxable year. This change clarifies that to that effect. taxable year was filed or the return due if the IRS withdraws a NAP, a partner Regarding the comment’s example of date for the taxable year. Section may treat an item inconsistently from a rule that might reflect a narrow 6235(a)(1). To allow for sufficient time how the item was treated on the construction of the regulations, this to examine the partnership taxable year partnership return after the withdrawal suggestion was also not adopted. and to mail a timely NOPPA, the IRS of the NAP. Proposed § 301.6232–1(d)(1)(iii) will normally mail the NAP early on in provided that in the case of a 7. Assessment, Collection, and Payment that three-year period. partnership-partner that has an election of Imputed Underpayments The period for filing a timely AAR under section 6221(b) in effect, any tax under section 6227(c) runs concurrently Proposed § 301.6232–1(d)(1)(i) resulting from an adjustment due to the with the three-year period for mailing a provided that a notice to a partnership partnership-partner’s failure to comply NOPPA. If after the issuance of the NAP that, on account of a mathematical or with section 6222(a) may be assessed a partnership finds that it agrees with clerical error appearing on the with respect to the reviewed year the adjustments the IRS has raised with partnership return or as a result of a partners of the partnership-partner (or the partnership during the examination, failure by a partnership-partner to indirect partners of the partnership- the partnership may also find that it is comply with section 6222(a), the IRS partner). Such tax may be assessed in more efficient for both the partnership has adjusted or will adjust partnership- the same manner as if the tax were on and the IRS to file an AAR, rather than related items to correct the error or to account of a mathematical or clerical have those adjustments be made in the make the items consistent under section error appearing on the reviewed year context of the partnership-level exam. In 6222(a) and has assessed or will assess partner’s or indirect partner’s return, such a case, the partnership may inform any imputed underpayment resulting except that the procedures under the IRS of its desire to file an AAR, and from the adjustment is not considered section 6213(b)(2) for requesting an the IRS can determine whether it is an FPA under section 6231(a)(3). A abatement of such assessment do not appropriate, in the view of the IRS, to petition for readjustment under section apply. Proposed § 301.6232–1(d)(1)(iii). withdraw the NAP in light of all of the 6234 may not be filed with respect to For all other partnership-partners, the facts and circumstances. It is incumbent such notice, and the limitations under IRS may assess an imputed upon the partnership to inform the IRS proposed § 301.6232–1(c) (providing underpayment against such partnership- of its desire to file an AAR at the earliest that generally no assessment can be partner on account of a failure to meet possible point in the exam to ensure the made before the mailing of an FPA or, the consistency requirements under NAP can be withdrawn with sufficient if applicable, a final court decision) do section 6222(a). See § 301.6232– time in the section 6227(c) period to file not apply to an assessment under 1(d)(1)(i). The rule suggested by the an AAR. § 301.6232–1(d)(1)(i). A partnership comment thus would apply in the case Proposed § 301.6231–1(f) provided generally may request abatement of such of partnership-partners that have an that a NAP that has been withdrawn by assessments, but abatement is not election under section 6221(b) in effect the IRS has no effect for purposes of available where an adjustment that is and that fail to meet the requirements of subchapter C of chapter 63. Under the subject of a notice described in section 6222(a). § 301.6223–1(d)(2) and (e)(2), however, proposed § 301.6232–1(d)(1)(i) is due to Section 6232(d) provides that any if the IRS withdraws a NAP pursuant to the failure of a partnership-partner to adjustment on account of a failure of a § 301.6231–1(f), any valid resignation or comply with section 6222(a). Proposed partnership that is a partner in another revocation of a partnership § 301.6232–1(d)(1)(ii). partnership to meet the requirements of representative designation or designated One comment recommended that the section 6222(a) shall be treated as an individual appointment prior to the regulations include a statement that the adjustment based on mathematical or

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clerical error, and rules similar to those tax in the reporting year, but nothing underpayment of tax or understatement under section 6213(b)(1) shall apply. In would give the partnership-partner the for such year. Proposed § 301.6233(a)– the case of partnership-partners that ability to claim a refund of any imputed 1(c)(2) provided rules that apply in the have an election in effect under section underpayment paid. Accordingly, it is case of penalties imposed under 6221(b), sections 6213 and 6232 allow the burden of a partnership-partner to sections 6662, 6662A, and 6663 with the IRS to assess tax against the partners ensure it has complied with the respect to partnership adjustments. of such partnership-partner, without provisions of section 6222(a), either by A. Defenses to Penalties providing for a method to seek treating items consistently with the abatement of that assessment. Section manner in which they are treated on the Proposed § 301.6233(a)–1(c)(1) 6232(d)(1)(B) provides that any partnership return or by notifying the provided that a partner-level defense (as adjustment on account of a failure by a IRS of any inconsistency, in order to described in § 301.6226–3(d)(3)) may partnership-partner to meet the preclude an assessment of an imputed not be raised in a proceeding of the consistency requirements under section underpayment under section partnership. As discussed in section 6222(a) is treated as an adjustment due 6232(d)(1)(B). 4.C.ii.I of this preamble, one comment to a mathematical or clerical error. Under § 301.6232–(d)(1)(ii)(B), a recommended that the regulations Accordingly, an assessment that follows partnership-partner that has failed to clarify that a partnership that makes a any adjustment to the partnership- comply with section 6222(a) may, prior push-out election will be able to avail partner’s return pursuant to section to assessment, correct an inconsistency itself of partner-level defenses at the 6232(d) is not subject to the prohibition by filing an AAR under section 6227 or partnership level. Another comment under section 6213(a), which would filing an amended partnership return recommended that the regulations otherwise require a notice of deficiency and furnishing amended statements, as should provide a mechanism for to be mailed to the taxpayer. appropriate. To clarify that an AAR in partners to raise partner-level defenses Additionally, section 6232(d)(1)(B) such a situation is only permitted to the prior to assessment, rather than explicitly provides that the provisions extent allowed under section 6227, requiring the partner to first pay the under section 6213(b)(2), permitting including the timing restrictions under penalty and then file a claim for refund abatement of such assessment, do not section 6227(c), the final regulations to raise the partner-level defense. The apply. Therefore, the IRS may assess tax under § 301.6232–(d)(1)(ii)(B) provide comment stated the post-payment against the partners of a partnership- that the partnership may file an AAR process would be unduly burdensome partner where the partnership-partner ‘‘in accordance with’’ section 6227. on partners and that a pre-payment reported inconsistently and has an In the situation where an imputed process would not impair the audit election in effect under section 6221(b) underpayment has been assessed process for the IRS. These comments without first having to issue a notice of pursuant to § 301.6232–(d)(1)(ii)(B) were not adopted. deficiency to the partner, and abatement against a partnership-partner but such Section 6233 provides that penalties of the assessment under section partnership-partner had in fact are determined as if the partnership had 6213(b)(2) is not available. Accordingly, complied with the provisions of section been an individual subject to chapter 1 no changes were made in response to 6222(a), the partnership may be able to tax for the reviewed year. In this comment. seek a refund of the any imputed determining whether a penalty applies The same comment also suggested underpayment paid on the ground that during the partnership proceeding, that the regulations explain how a the adjustment should not have been therefore, it is only the conduct of the taxpayer may properly challenge a treated as being on account of partnership that is relevant. Allowing mathematical or clerical error mathematical or clerical error. Any the partnership or partners to raise assessment made by the IRS under ability to seek a refund in this situation, partner-level defenses and requiring the proposed § 301.6232–(d)(1)(ii)(B) where however, is outside the scope of these IRS to evaluate a partner’s facts and the normal abatement procedures are regulations. For these reasons, no circumstances during the partnership unavailable. This comment was not changes were made to the regulations proceeding contravenes that purpose of adopted. under § 301.6232–1(d) in response to the centralized partnership audit In the case where an imputed this comment. regime. Such a rule would also underpayment has been assessed significantly impair the IRS’s audit 8. Interest and Penalties Related to pursuant to § 301.6232–(d)(1)(ii)(B) process. As discussed in section 3 of Imputed Underpayments against a partnership-partner that has this preamble regarding the not complied with section 6222(a), the Proposed § 301.6233(a)–1(a) provided determination of imputed partnership-partner may be able to file that except to the extent provided in underpayments, an examination under an AAR subsequent to that assessment section 6226(c) and the regulations the centralized partnership audit regime in accordance with the provisions of thereunder, in the case of a partnership is a centralized proceeding wherein sections 6222 and 6227. While the AAR adjustment for a reviewed year, a partner tax attributes are generally may readjust the partnership-related partnership is liable for interest and for unaccounted for. Requiring the IRS to items at issue which resulted in the any penalty, addition to tax, or evaluate the specific facts and imputed underpayment, in effect additional amount as provided in circumstances of each partner providing an opportunity to the proposed § 301.6233(a)–1(c). Proposed undermines the centralized nature of partnership to contest the adjustments, § 301.6233(a)–1(c)(1) provided that in the proceeding and could significantly such readjustments would be required accordance with section 6221(a), the delay the examination. to be taken into account by the applicability of any penalties, additions Moreover, section 6233 treats an partnership’s partners pursuant to the to tax, and additional amounts that imputed underpayment as if it were an rules under section 6227 because the relate to a partnership adjustment is actual underpayment or understatement readjustments would necessarily be determined at the partnership level as if for the reviewed year. A partner-level adjustments that would not result in an the partnership had been an individual defense by itself cannot reduce the imputed underpayment. See subject to tax imposed by chapter 1 of amount of an imputed underpayment. §§ 301.6227–1(a), 301.6227–3(a). Those the Code for the reviewed year, and the Even if the partner-level defense were readjustments may reduce the partner’s imputed underpayment were an actual sufficient to provide penalty relief, that

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relief does not affect the amount of the to group adjustments by character for understatement, but also respects the imputed underpayment. A partner-level purposes of calculating the portion of framework for calculating the imputed defense can only be relevant in the imputed underpayment subject to underpayment established under situations where the imputed the penalty. This comment was partially section 6225 and the regulations underpayment is reduced because a adopted. thereunder. The revised rule is also partner takes into account the Section 6233(a)(3) provides that any more streamlined, removes references to adjustments that resulted in the penalty, addition to tax, or additional specific penalty rates to allow for any imputed underpayment, for example as amount shall be determined at the future statutory changes, and eliminates part of modification, or where there is partnership level as if such partnership unnecessary steps and terminology. For no partnership-level liability for the had been an individual subject to tax example, the revised rule eliminates the imputed underpayment because of an under chapter 1 for the reviewed year term decreasing adjustment and instead election by the partnership under and the imputed underpayment were an uses the term ‘‘negative adjustment’’ as section 6226 to have its partners take actual underpayment (or defined in § 301.6225–1(d)(2). into account the adjustments. Only understatement) for such year. Section Section 301.6233(a)–1(c)(2) provides upon taking into account the 6662, which imposes accuracy-related the rules for calculating penalties under adjustments will a partner know the penalties on underpayments, applies to section 6662, 6662A or 6663. Section amount of the penalty the partner is the portion of an underpayment 301.6233(a)–1(c)(2)(iii) provides the liable for and therefore whether a attributable to certain circumstances rules for applying negative adjustments. defense to the penalty is needed. such as negligence or disregard of rules As a threshold matter, the rule provides Accordingly, comments suggesting that or regulations or a substantial that adjustments that do not result in an the partnership be permitted to raise understatement of income tax. To imputed underpayment and partner-level defenses to reduce a determine the portion of an imputed adjustments that are disregarded in penalty imposed against the partnership underpayment to which a penalty determining the imputed underpayment were not adopted. For discussion of applied, proposed § 301.6233(a)–1(c) are not taken into account when partner-level defenses in the context of applied rules similar to the ordering determining the amount of penalties. modification and the push out election, rules under § 1.6664–3 by disregarding The rule generally provides that if any see sections 3.C and 4.C.ii.I of this the grouping and subgrouping rules grouping or subgrouping as determined preamble. under § 301.6225–1 and by applying under § 301.6225–1 or § 301.6225–2 decreasing adjustments to offset any contains a negative adjustment and at B. Determining the Portion of the positive adjustments to which no least one positive adjustment subject to Imputed Underpayment to Which the penalty was imposed, followed by penalty, the negative adjustment is first Penalty Applies adjustments to which 20 a percent used to offset any positive adjustment to Proposed § 301.6233(a)–1(c)(2)(ii) penalty was imposed, and so forth. which no penalties have been imposed provided rules for determining the While the rules under proposed within that grouping or subgrouping. If portion of the imputed underpayment to § 301.6233(a)–1(c) were consistent with any amount of negative adjustments which a penalty applies where there the rules § 1.6664–3, this consistency remains after offsetting positive exists (1) at least one adjustment with did not allow for important distinctions adjustments to which no penalties have respect to which no penalty has been between the calculation of an been imposed, the remaining amount of imposed and at least one adjustment underpayment and the calculation of negative adjustment is applied within with respect to which a penalty has the imputed underpayment. For the grouping or subgrouping against been imposed or (2) at least two example, in computing an imputed positive adjustments to which a penalty adjustments with respect to which underpayment, negative adjustments are has been imposed at the lowest rate. If penalties have been imposed and the generally not taken into consideration in after this step, any amount of negative penalties have different rates. In general, determining the imputed underpayment adjustment remains, the process is to determine the portion of the imputed unless the negative adjustment is in a repeated iteratively with respect to underpayment to which the penalty grouping or subgrouping under higher rates in ascending order of rate. applies, all partnership adjustments that § 301.6225–1 that results in a net Additionally, the regulations provide resulted in the imputed underpayment positive adjustments because only net special rules for the application of were grouped together according to positive adjustments are totaled to negative credits. All adjustments to whether they were adjustments with determine the total netted partnership credits and adjustments treated as respect to which a penalty has been adjustment, which forms the base for an adjustments to credits are treated as imposed and according to rate of imputed underpayment prior to grouped in the credit grouping without penalty. The adjustments were then application of any adjustments to regard to whether the adjustments were multiplied by the rate that applied in credits. subgrouped for purposes of § 301.6225– calculating the imputed underpayment Section 301.6233(a)–1(c) has been 1 (or § 301.6225–2 in the case of and added together to produce the revised to account for these distinctions modification). If negative credit portion of the imputed underpayment to and to apply the ordering rules under adjustments remain after the application which the penalty applies. § 1.6664–3 within each grouping or of negative adjustments in accordance One comment observed that under subgrouping determined in accordance with § 301.6233(a)–1(c)(2)(iii)(A), proposed § 301.6233(a)–1(c)(2)(ii)(D) with § 301.6225–1. Because the revised negative credit amounts are first applied and (E) negative or decreasing rule uses the groupings and to reduce the portion of the imputed adjustments were applied first to subgroupings determined under section understatement not subject to penalty adjustments to which no penalties have 6225, in general the character of the then to reduce the portion of the been imposed and then to adjustments adjustments within each grouping will imputed understatement subject to subject to the lowest penalty and be the same, as suggested by the penalty iteratively in ascending order of suggested that this rule applies such comment. See § 301.6225–1(d). The rate. adjustments in a manner that maximizes revised rule maintains the treatment of Section 301.6233(a)–1(c)(2)(ii) penalties. The comment recommended an imputed underpayment as if it were provides the mechanical steps for that the proposed regulations be revised an actual underpayment or calculating any penalty after any

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negative adjustments have been applied § 301.6233(a)–1(c) is the interest that amount of the imputed underpayment in accordance with 301.6233(a)– would be imposed under chapter 67 of that would be reported by partners that 1(c)(2)(iii). The steps are applied the Code treating the partnership return receive 6226 statements, this suggestion separately for each particular penalty for the reviewed year as the return of tax was not adopted. The plain language of imposed with respect to the to with respect to which such penalty is section 6234(b)(1) makes clear that a adjustments. imposed. To the extent the comment petition for readjustment may be filed in First, all adjustments that are not was suggesting a rule that is not district court or the Court of Federal adjustments to credits or treated as consistent with chapter 67 of the Code, Claims only if the partnership makes a adjustments to credits that are subject to the comment was not adopted. jurisdictional deposit. The statute does a particular penalty and to which the not provide authority to alter this 9. Judicial Review of Partnership highest rate of tax in effect for the jurisdictional requirement by regulation Adjustments reviewed year under section 1 or 11 was for any partnerships, including applied are totaled. Second, the total Section 6234(a) provides that a partnerships that make the election from step one is multiplied by the partnership may file a petition in the under section 6226. The election under highest rate of tax in effect for the Tax Court, a United States district court, section 6226 is made with respect to an reviewed year under section 1 or 11. or the Court of Federal Claims, within imputed underpayment, and therefore Third, the first and second steps are 90 days of the date on which an FPA is the deposit required under section repeated for any other tax rates used to mailed under section 6231. A petition 6234(b)(1) must equal the entire calculate the imputed underpayment, under section 6234 may be filed in a imputed underpayment to which the for example, rates applied as part of the district court or the Court of Federal election relates (in addition to penalties modification process. Fourth, all of the Claims only if the partnership filing the and interest). An election under section results from completing the first three petition makes a jurisdictional deposit 6226 is not with respect to a portion of steps are totaled. Fifth, all adjustments in accordance with section 6234(b). The an imputed underpayment; likewise, a in the credit grouping are netted. The jurisdictional deposit is the amount of deposit under section 6234(b)(1) cannot total from step four is increased by any (as of the date of the filing of the be for a portion of the imputed remaining positive adjustments to petition) any imputed underpayment (as underpayment. credits or decreased by negative shown on the FPA) and any penalties, Moreover, a rule allowing for a adjustments to credits in accordance additions to tax, and additional amounts reduction in the deposit amount for with the rules in § 301.6233(a)– with respect to such imputed those partners that are furnished 1(c)(2)(iii). This result is the portion of underpayment. See proposed statements under section 6226 would the imputed underpayment subject to § 301.6234–1(b). not work as a practical matter. First, to penalty. Sixth, the total from step five Under proposed § 301.6226–1(e), a the extent the comment was suggesting is multiplied by the penalty rate for the partnership that has made an election a rule that allows a reduction of the penalty to provide the total penalty under § 301.6226–1 is not precluded deposit equal to each partner’s share of amount. from filing a petition under section the adjustments, this rule would reduce 6234(a). One comment stated that the the deposit amount to zero, provided all C. Interest on Penalties, Additions to proposed regulations provided no partners properly were furnished Tax, and Additional Amounts explanation as to how or whether the statements. This would effectively As discussed earlier in section deposit amount under section 6234(b) eliminate the deposit requirement for 4.C.ii.III. of this preamble, one comment may or should be adjusted to reflect a partnerships making an election under recommended that the regulations adopt push out election under section 6226. section 6226. There is nothing in the a bifurcated approach under which The comment recommended the statute that allows any partnership, interest would run on tax from the due regulations should provide a including a partnership making the date of the return without regard to mechanism that would enable a election under section 6226, to be extensions while interest on penalties partnership to file a petition in a district exempt from the jurisdictional would run from the due date of the court or Court of Federal Claims and requirements of section 6234(b). return including any extensions. The still make an election under section Second, to the extent the comment comment recommended that proposed 6226, without creating the risk of having was suggesting a rule that would reduce § 301.6233(a)–1(b) be revised to provide tax on the partnership adjustments paid the deposit by the tax paid by partners that the interest imposed on penalties twice. The comment suggested that one furnished statements, this rule would and additions to tax (other than possible approach might be to reduce also not work given the timing of when assessable penalties) on an imputed the deposit amount by the amount that statements must be furnished. Pursuant underpayment begins on the day after would be reported by partners that to § 301.6226–2(b)(1), all statements the due date of the partnership return receive statements based on an election must be furnished no later than 60 days (including any extensions). This under section 6226. The comment after the date all of the partnership comment was partially adopted. suggested that another approach might adjustments to which the statement Proposed § 301.6233(a)–1(b) provided be to provide a clear mechanism for relates are finally determined. rules regarding interest on an imputed having the partnership obtain a refund Partnership adjustments are finally underpayment, but did not provide of the imputed tax deposit before any determined upon the later of the rules regarding interest on penalties, amounts are paid by the push out expiration of the time to file a petition additions to tax, or additional amounts partners under section 6226. under section 6234, or if a petition with respect to the imputed The comment’s suggestion regarding under section 6234 is filed, the date underpayment. In light of the comment, whether a partnership can make an when the court’s decision becomes the final regulations under election under section 6226 and also file final. The deposit under section § 301.6233(a)–1(b) clarify that interest a petition under section 6234 is 6234(b)(1) must be made when a with respect to penalties, additions to addressed in section 4.A.v of this petition is filed. The deposit cannot be tax, or additional amounts with respect preamble. With respect to the reduced at the time by the amount the to an imputed underpayment comment’s suggestion that the tax partners will pay because statements determined under the rules of partnership deposit be reduced by the are not furnished until later in the

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process and even then the tax is not under § 301.7701–2(b) and that has at One comment was received regarding known until the partner files its return least two members. the application of the centralized for the reporting year, which depending Section 6241(1) defines the term partnership audit regime to pass- on timing of the FPA could be more partnership to mean any partnership through partners as a result of the than a year after the deadline for required to file a return under section proposed regulations. Proposed petitioning a court under section 6031(a), which applies to every § 301.6226–3 provided that a pass- 6234(a). For these reasons, the partnership as defined in section 761(a). through partner that is furnished a comment’s suggestion regarding a Certain unincorporated organizations statement described in § 301.6226–2 reduction in the amount of the deposit may elect under section 761(a) to not be must comply with proposed § 301.6226– were not adopted, and the regulations subject to subchapter K. Proposed 3(e). The term ‘‘pass-through partner’’ were not changed in response to those § 301.6241–5(a) provided that an entity includes partnerships that made an suggestions. that files a partnership return for any election under section 6221(b) for the With respect to the comment’s taxable year is subject to the centralized taxable year. One comment suggested recommendation that there be a clear partnership audit regime with respect to that there may be uncertainty with mechanism for having the partnership such taxable year even if it is respect to how a partnership that has obtain a refund of the tax deposit, the determined that the person filing the elected out of the centralized comment’s concern that the deposit partnership return was not a partnership partnership audit regime complies with made in conjunction with a section for such taxable year. Proposed the requirements of the regime. For 6226 election would result in double § 301.6241–5(c)(2) provided an example, the elected out partnership taxation is misplaced; however, the exception from this rule for entities for may not have designated a partnership regulations were revised to clarify which a partnership return was filed for representative prior to receiving a operation of the deposit rules. Under the sole purpose of making the election statement described in § 301.6226–2. § 301.6234–1(c), the amount deposited described in section 761(a). The comment recommended that the One comment suggested there was an under section 6234(b)(1) is not treated Treasury Department and the IRS inconsistency between the definition of as a payment of tax (except with respect should issue further guidance on elected ‘‘pass-through partner’’ under proposed to chapter 67 of the Code). If the out partnerships, including providing § 301.6241–1(a)(5), which defines partnership makes a valid election guidance that confirms an elected out partnership by reference to § 301.7701– partnership receiving a statement under section 6226, no amount may be 2(c)(1), and the exception under assessed against the partnership, and described in § 301.6226–2 and proposed § 301.6241–5(c)(2) for entities complying with § 301.6226–3(e) will not instead the partners must take the that have elected out of subchapter K. adjustments into account. To conform be deemed subject to the centralized The comment observed that the partnership audit regime for other these two sets of rules, the final definition of partnership under purposes. regulations under § 301.6234–1(e) § 301.7701–2(c)(1) arguably includes A partnership that has made an clarify that a partnership is entitled to business organizations that have elected election under section 6221(b) is not a return of any deposit that is in an out of subchapter K under section subject to the requirements of the amount in excess of the amount 761(a). As a result, the term ‘‘pass- centralized partnership audit regime as assessed against the partnership. To through partner’’ would include entities a partnership. For example, the obtain a return of this excess deposit, that may not be partnerships within the partnership is not required to select a the partnership must notify the IRS in meaning of section 6031(a) because partnership representative. A writing in accordance with forms, those entities are required to file partnership that has made an election instructions, and other guidance partnership returns. To remedy this under section 6221(b) may still be prescribed by the IRS. inconsistency, the comment subject to the requirements of the 10. Definitions and Special Rules recommended that the definition of centralized partnership audit regime in ‘‘pass-through partner’’ in proposed its capacity as a partner in a partnership Five comments were received § 301.6241–1(a)(5) be revised to that is subject to the centralized regarding the definition of pass-through eliminate the reference to § 301.7701– partnership audit regime. For example, partner under proposed § 301.6241–1, 2(c)(1) and instead refer to the definition sections 6222, 6223, 6226(b)(4)(C), the rules regarding cease to exist of ‘‘partnership’’ under section 6241(1), 6241(7), and the regulations thereunder determinations in accordance with that is, ‘‘a partnership required to file a apply to all partners in a partnership proposed § 301.6241–3, and the rules return under section 6031(a).’’ subject to the centralized partnership regarding the nondeductibility of The Treasury Department and the IRS audit regime, including any pass- payments made under the centralized agree with the comment that there was through partner. Pass-through partners partnership audit regime as provided in an inconsistency in the definition of that must comply with these provisions proposed § 301.6241–4. ‘‘pass-through partner.’’ The approach include partnerships subject to the A. Definitions recommended in the comment was centralized partnership audit regime as adopted and remedied this partnerships as well as those that made Proposed § 301.6241–1 defined inconsistency. The revision clarifies that an election under 6221(b) and other certain terms for purposes of the business organizations that have elected entities such as S corporations and centralized partnership audit regime. out of subchapter K are not ‘‘pass- trusts. Proposed § 301.6241(a)(5) defined a through partners.’’ This change is For example, under § 301.6226–3(e) a ‘‘pass-through partner’’ as ‘‘a pass- consistent with the definition of pass-through partner that receives a through entity that holds an interest in ‘‘partnership’’ under section 6241(1). push out statement from an audited a partnership’’ and a ‘‘pass-through Accordingly, the definition of ‘‘pass- partnership must furnish statements to entity’’ to include a partnership through partner’’ under § 301.6241– its owners or, if it fails to furnish described in § 301.7701–2(c)(1), among 1(a)(5) refers to a partnership that is statements to its owners, pay an other types of entities. A partnership as required to file a return under section imputed underpayment. This rule described in § 301.7701–2(c)(1) means a 6031(a), consistent with the definition applies regardless of whether or not the business entity that is not a corporation of partnership under section 6241(1). pass-through partner is subject to the

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centralized partnership audit regime in however, will retain its discretion as to notify the partnership and its former its capacity as a partnership. Nothing in whether to determine that a partnership partners within 30 days of such proposed § 301.6226–3(e) indicated that has ceased to exist, even if the facts determination. The final regulations a pass-through partner not otherwise would indicate that the partnership clarify that a failure by the IRS to send subject to the centralized partnership meets the criteria in § 301.6241– a notification required under audit regime becomes subject to other 3(b)(1)(i) and (ii). The cease-to-exist § 301.6241–3(b)(1) to the former provisions of the regime simply because rules are inherently related to collection partners of the partnership does not it must comply with § 301.6226–3(e) in issues with respect to amounts not paid invalidate a determination that the its capacity as a partner. Therefore, the as a result of an administrative partnership has ceased to exist. In Treasury Department and the IRS have proceeding under the centralized addition, one comment suggested that declined to provide further guidance partnership audit regime. Where a the IRS should also notify the regarding the application of the taxpayer or partnership properly owes partnership representative (and centralized partnership audit regime to amounts to the U.S. government, the IRS designated individual, if applicable). To partnerships that have made an election should be provided broad latitude, the extent the comment is referring to out of the centralized partnership audit within the statutory limits, to ensure the partnership representative of the regime under section 6221(b). that such amounts are ultimately audited partnership, the comment has collected. To that end, it is B. Treatment Where a Partnership been adopted. In the case of a administratively necessary for the IRS to Ceases To Exist determination that the partnership has retain its discretion to make a ceased to exist, the IRS will notify the Several comments were received determination about whether a regarding the treatment of partnership partnership ceases to exist. Cease to partnership, the former partners of the adjustments where a partnership ceases exist is not the only collection tool partnership, and when an audited to exist under section 6241(7). The available to the IRS. The Treasury partnership has ceased to exit, the comments pertained to two general Department and the IRS therefore partnership representative (and areas: (1) The determination that a decline to create an additional designated individual, if applicable) for partnership has ceased to exist; and (2) unnecessary administrative rule that the reviewed year. This rule is the definition of ‘‘former partners’’ would compel the IRS to make a consistent with the other notification under proposed § 301.6241–3(d). determination if requested by a provisions throughout the centralized partnership audit regime, which provide i. Determination That Partnership Has taxpayer. Accordingly, no changes were notification to the partnership Ceased To Exist made to the final regulations as a result of this comment. representative and designated Proposed § 301.6241–3 provided that, Although the regulations do not individual, if applicable. To the extent if the IRS determined a partnership require the IRS to make a cease-to-exist the comment was referring to a ceased to exist (as described in determination upon a formal request, partnership that received a push out proposed § 301.6241–3(b)(2)) before the the regulations have been revised to statement, the comment was not partnership adjustments take effect (as provide that a partnership does not adopted. The partnership representative described in proposed § 301.6241–3(c)), cease to exist for purposes of section from the reviewed year or any other year the partnership adjustments are taken 6241(7) without the IRS determining the of a partnership that received a push out into account by the former partners (as partnership has ceased to exist. Under statement has no connection to the described in proposed § 301.6241–3(d)) proposed § 301.6241–3(b), cease to exist unpaid, current liability and notification in accordance with proposed was defined as a situation where the would not be appropriate or necessarily § 301.6241–3(e). Proposed § 301.6241– partnership terminates under section beneficial to the partnership. In 3(b)(1) provided that a determination 708(b)(1) or is unable to pay, in full, any addition, there would be administrative that a partnership had ceased to exist amount due under subchapter C of complexity for the IRS in determining was within the sole discretion of the chapter 63. It was not clear from the the appropriate partnership IRS, and the IRS was not required to proposed regulations whether a representative for a partnership partner determine that a partnership has ceased partnership meeting those criteria could to notify because the IRS will only have to exist, even if the partnership meets cease to exist without an accompanying been in contact with the partnership the definition of cease to exist in determination to that effect by the IRS. representative of the audited proposed § 301.6241–3(b)(2). The final regulations under § 301.6241– partnership, not partnership One comment stated that the language 3(b) make clear that a partnership ceases representatives of other partnerships not in proposed § 301.6241–3(b)(1) and (2) to exist if the partnership terminates subject to an administrative proceeding. was ambiguous and allowed for within the meaning of section 708(b)(1) excessive latitude and a potential for or the partnership does not have the The same comment also suggested abuse of discretion in making such a ability to pay, in full, any amount due that the partnership should be allowed cease-to-exist determination. The under subchapter C of chapter 63, but to appeal a determination that the comment suggested that the IRS, upon only if the IRS makes a determination partnership has ceased to exist to the formal request, should be compelled to that the partnership has ceased to exist IRS Office of Appeals within 60 days of consider the facts and circumstances of under one of those two situations. The the receipt of the IRS’s determination a cease-to-exist determination. final regulations provide certainty to that the partnership has ceased to exist. If the IRS receives a letter requesting both taxpayers and the IRS about when This comment was not adopted. As that the IRS determine that a specific a partnership ceases to exist and make discussed in section 11 of this Summary partnership has ceased to exist and the cease-to-exist rules more of Comments and Explanation of providing detailed facts to support such administrable for the IRS by eliminating Revisions, any guidance regarding the a determination, the IRS will consider any confusion about whether a availability of review by the IRS Office the circumstances in the letter and partnership has ceased to exist. of Appeals will be provided outside of whether it is in the interest of sound tax Proposed § 301.6241–3(b)(1) provided these regulations to preserve flexibility administration to determine that the that if the IRS determines that a and allow the IRS to revise its partnership has ceased to exist. The IRS, partnership ceased to exist, the IRS will procedures as it gains experience with

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the centralized partnership audit adjustments. The comment suggested preamble, the term ‘‘former partners’’ regime. that the final regulations add the ability was defined under proposed Former proposed § 301.6241– for the IRS to assess the transferees of § 301.6241–3(d)(1)(i) as the partners for 3(b)(2)(iii) had provided that the IRS the former partners and the owners of the adjustment year that corresponds to could not determine that a partnership the partnership. the partnership taxable year to which ceased to exist with respect to a Under section 6232(f), as added by the the partnership adjustment relates. The partnership adjustment after the TTCA after the comment was received, final regulations under § 301.6241– expiration of the period of limitations if the partnership does not pay any 3(d)(1)(i) clarify that the term ‘‘former on collection applicable to the amount amount of the imputed underpayment partners’’ means, for a partnership that due resulting from such adjustment. or specified similar amount (as defined has ceased to exist, the partners of the One comment observed that the in section 6232(f)(2)) within 10 days partnership during the adjustment year reference to the ‘‘period of limitations after the date on which the IRS provides (as defined in § 301.6241–1(a)(2)) that on collection applicable to the amount notice and demand for such payment, corresponds to the reviewed year for due’’ did not specify whether the period the IRS may assess upon each partner of which the adjustments were made. of limitations related to the partnership the partnership (as of the close of the or the partner. In the August 2018 adjustment year) or, if the partnership C. Payments Nondeductible NPRM, former proposed § 301.6241– has ceased to exist, the former partners Proposed § 301.6241–4 provided that 3(b)(2)(iii) was revised to provide that of the partnership, a tax equal to such no deduction is allowed under subtitle the relevant period of limitations is the partner’s proportionate share of such A of the Code for any payment required period of limitations on collection amount (including any penalties and to be made by a partnership under the applicable to the assessment made interest). Section 6232(f) provides the centralized partnership audit regime, against the partnership for the amount IRS with the ability to directly make which includes any imputed due resulting from such adjustment. assessments against the partners of a underpayment or any interest, penalties, Because the plain language of proposed partnership that fails to pay an imputed additions to tax, or additional amounts § 301.6241–3(b)(2)(iii) resolves the underpayment or specified similar with respect to an imputed ambiguity identified by the comment, amount much like the assessment underpayment. Former proposed no further changes were made in the authority suggested by the comment. In § 301.6225–1(a) provided that a final regulations in response to this addition, nothing in proposed partnership’s expenditure for the comment. § 301.6241–3 limits or otherwise imputed underpayment ‘‘and the modifies the IRS’s existing tools under adjustments that result in the imputed ii. Definition of Former Partners the Code, related case law, or any other underpayment’’ are taken into account Proposed § 301.6241–3(d) defined the law with respect to transferee liability. by the partnership in accordance with term ‘‘former partners’’ as the Accordingly, no changes were made to § 301.6241–4.’’ One comment suggested adjustment year partners of the the final regulations in response to this that, because of the cross reference to partnership that ceased to exist, unless comment. For these reasons, the § 301.6241–4 in former proposed there are no adjustment year partners in clarification recommended by the § 301.6225–1(a), that the regulations which case the former partners are the comment was not adopted. under § 301.6241–4 be revised to partners of the partnership during the Another comment suggested that the address the treatment of the adjustments last taxable year for which a partnership definition of ‘‘former partners’’ under that result in the imputed return under section 6031 was filed proposed § 301.6241–3(d) should underpayment. This comment was not with respect to such partnership. If the include the reviewed year partners of adopted. IRS determined that the partnership the partnership that has ceased to exist Proposed § 301.6241–4 addressed the ceased to exist prior to the partnership in situations where the partnership has deductibility of payments required adjustments taking effect, the former made an election under section 6226. under the centralized partnership audit partners of the partnership take into Proposed § 301.6241–3(b)(2)(i)(A) regime and did not address the account the partnership adjustments as provided that the IRS may not treatment of adjustments that were if the partnership had made an election determine that a partnership has ceased taken into account in determining the under section 6226 to push out the to exist solely because the partnership amount of such payments. In the August adjustments to the former partners. See has a valid election under section 6226 2018 NPRM, former proposed proposed § 301.6241–3(e). in effect with respect to any imputed § 301.6225–1(a) was revised to remove One comment expressed concern that, underpayment. If the partnership makes the erroneous cross-reference to the once a partnership was placed under a valid election under section 6226, the adjustments being taken into account examination, the partners could transfer partnership is not liable for the imputed under § 301.6241–4. To the extent the their partnership interests to defunct underpayment to which the election comment was recommending that corporations or otherwise uncollectible relates. See section 6226(a) and revision, the comment was addressed by entities such that the IRS would be § 301.6226–1(b)(2). As a result, the IRS the revisions in the August 2018 NPRM. unable to collect from the ‘‘former cannot determine the partnership ceases To the extent the comment was partners’’ under the provisions of to exist with respect to that imputed recommending guidance on the proposed § 301.6241–3. Similarly, the underpayment (see § 301.6241–3(b)(2)), treatment of partnership adjustments in comment expressed concern that if the and the cease to exist provisions under the context of adjusting tax attributes, partnership was able to pay some but proposed § 301.6241–3 will not apply to those rules were provided in proposed not all of the amounts due under the such partnership with respect to that §§ 301.6225–4 and 301.6226–4. centralized partnership audit regime imputed underpayment. Therefore, this and the IRS did not determine that the comment was not adopted. D. Extension to Entities Filing partnership had ceased to exist, the Although this comment was not Partnership Returns partners would benefit from the adopted, a clarification was made to the Proposed § 301.6241–5(c)(2) provided improper treatment of the items and the definition of ‘‘former partners’’ under that the centralized partnership audit partnership will not have paid the proposed § 301.6241–3(d)(1)(i). As regime would not apply to a taxable amounts owed as a result of the stated earlier in this section of the year for which a partnership return was

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filed for the sole purpose of making an and the IRS continue to gain experience Department and the IRS participated in election described in section 761(a) with the centralized partnership audit their development. (regarding election out of subchapter K regime and implement rules under the List of Subjects in 26 CFR Part 301 for certain unincorporated new TCJA provisions, guidance will be organizations). The final regulations issued if it is later determined that Employment taxes, Estate taxes, under § 301.6241–5(c)(2) retain this rule doing so would be appropriate. For Excise taxes, Gift taxes, Income taxes, but clarify that the centralized these reasons, this comment was not Penalties, Reporting and recordkeeping partnership audit regime will not apply adopted. requirements. to a taxable year in which a valid Amendments to the Regulations section 761(a) election is made. This 13. Effective Date of Centralized change was made to clarify that the Partnership Audit Regime Accordingly, 26 CFR part 301 is election under section 761(a) must be Several comments recommended that amended as follows: the effective date of the centralized valid in order for the rules under PART 301—PROCEDURE AND § 301.6241–5 not to apply to a partnership audit regime be delayed. ADMINISTRATION partnership return that is filed with These comments were not adopted respect to a taxable year. because the effective date for the ■ Paragraph 1. The authority citation statutory provisions governing the 11. Comments Concerning IRS Appeals for part 301 is amended by adding centralized partnership audit regime is Office entries for §§ 301.6221(a)–1, 301.6222– established by statute. See BBA section 1, 301.6225–1, 301.6225–2, 301.6225–3, Several comments were received 1101(g). 301.6226–1, 301.6226–2, 301.6226–3, regarding the interaction between the Special Analyses 301.6227–1, 301.6227–2, 301.6227–3, centralized partnership audit regime 301.6231–1, 301.6232–1, 301.6233(a)–1, and the IRS Appeals. For example, This regulation is not subject to 301.6233(b)–1, 301.6234–1, 301.6235–1, certain comments suggested the review under section 6(b) of Executive 301.6241–1, 301.6241–2, 301.6241–3, regulations clarify the rules regarding a Order 12866 pursuant to the 301.6241–4, 301.6241–5, and 301.6241– partnership’s ability to raise various Memorandum of Agreement (April 11, 6 in numerical order to read in part as issues and determinations with IRS 2018) between the Treasury Department follows: Appeals, including the timing of any and the Office of Management and involvement by IRS Appeals. Budget regarding review of tax Authority: 26 U.S.C. 7805 * * * Procedures governing IRS Appeals are Section 301.6221(a)–1 also issued under 26 regulations. Therefore, a regulatory U.S.C. 6221. beyond the scope of these regulations. impact assessment is not required. Section 301.6222–1 also issued under 26 Accordingly, except as described in Because the final regulations would U.S.C. 6222 and 6223. sections 3.B.i., 3.B.vii., 4.B.v., and not impose a collection of information * * * * * 10.B.i. of this preamble, neither this on small entities, the Regulatory Section 301.6225–1 also issued under 26 preamble nor the regulations address Flexibility Act (5 U.S.C. chapter 6) does U.S.C. 6225. IRS Appeals procedures in the context not apply. Section 301.6225–2 also issued under 26 of the centralized partnership audit Pursuant to section 7805(f) of the U.S.C. 6223 and 6225. regime. These procedures are expected Code, the notice of proposed rulemaking Section 301.6225–3 also issued under 26 to be addressed in future guidance. preceding these regulations was U.S.C. 6225. submitted to the Chief Counsel for * * * * * 12. Effect of Provisions Enacted Under Section 301.6226–1 also issued under 26 the Tax Cuts and Jobs Act Advocacy of the Small Business Administration for comment on its U.S.C. 6223 and 6226. One comment suggested that the final impact on small business, and no Section 301.6226–2 also issued under 26 regulations include guidance on the U.S.C. 6226. comments were received. Section 301.6226–3 also issued under 26 effect of the new partnership-related U.S.C. 6226. provisions of the Tax Cuts and Jobs Act, Statement of Availability of IRS formally known as ‘‘An Act to provide Documents * * * * * Section 301.6227–1 also issued under 26 for reconciliation pursuant to titles II IRS Revenue Procedures, Revenue U.S.C. 6223 and 6227. and V of the concurrent resolution on Rulings, Notices and other guidance Section 301.6227–2 also issued under 26 the budget for fiscal year 2018,’’ Public cited in this preamble are published in U.S.C. 6227. Law 115–97 (TCJA), including examples the Internal Revenue Bulletin (or Section 301.6227–3 also issued under 26 of how adjustments to partnership- Cumulative Bulletin) and are available U.S.C. 6227. related items and tax attributes specific from the Superintendent of Documents, * * * * * to the new TCJA provisions are treated U.S. Government Publishing Office, Section 301.6231–1 also issued under 26 under sections 6225 and 6226 by Washington, DC 20402, or by visiting U.S.C. 6231. partnerships and their partners. the IRS website at www.irs.gov. * * * * * The Treasury Department and the IRS Section 301.6232–1 also issued under 26 have determined not to provide Drafting Information U.S.C. 6232. guidance on how the provisions of the The principal authors of these final * * * * * TCJA, including any partnership-related regulations are Jennifer M. Black of the Section 301.6233(a)–1 also issued under 26 provisions, interact with the centralized Office of the Associate Chief Counsel U.S.C. 6233. partnership audit regime. The TCJA (Procedure and Administration), Steven Section 301.6233(b)–1 also issued under 26 L. Karon of the Office of the Associate U.S.C. 6233. provisions are substantive tax rules that Section 301.6234–1 also issued under 26 work independently of the procedural Chief Counsel (Procedure and U.S.C. 6234. rules of the centralized partnership Administration), and Joy E. Gerdy Section 301.6235–1 also issued under 26 audit regime. Therefore, no change Zogby of the Office of the Associate U.S.C. 6235. would necessarily be required as a Chief Counsel (Procedure and Section 301.6241–1 also issued under 26 result of these substantive provisions. Administration). However, other U.S.C. 6241. However, as the Treasury Department personnel from the Treasury * * * * *

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Section 301.6241–2 also issued under 26 general. The treatment of partnership- including any statements filed pursuant U.S.C. 6241. related items (as defined in § 301.6241– to section 6226. Section 301.6241–3 also issued under 26 1(a)(6)(ii)) on a partner’s return must be (5) Examples. The following examples U.S.C. 6241. illustrate the rules of this paragraph (a). Section 301.6241–4 also issued under 26 consistent with the treatment of such U.S.C. 6241. items on the partnership return in all For purposes of these examples, each Section 301.6241–5 also issued under 26 respects, including the amount, timing, partnership is subject to the provisions U.S.C. 6241. and characterization of such items. A of subchapter C of chapter 63 of the * * * * * partner has not satisfied the requirement Code (subchapter C of chapter 63), and Section 301.6241–6 also issued under 26 of this paragraph (a) if the treatment of each partnership and its partners are U.S.C. 6241. the partnership-related item on the calendar year taxpayers, unless * * * * * partner’s return is consistent with how otherwise stated. ■ Par. 2. Section 301.6221(a)–1 is added such item was treated on a schedule or (i) Example 1. A is a partner in Partnership to read as follows: other information furnished to the during 2018 and 2019. In December 2018, partner by the partnership but Partnership receives an advance payment for § 301.6221(a)–1 Determination at inconsistent with the treatment of the services to be performed in 2019 and reports partnership level. item on the partnership return actually this amount as income on its partnership (a) In general. Except as otherwise filed. For rules relating to the election return for 2018. A includes its distributive provided under subchapter C of chapter share of income from the advance payment to be treated as having reported the on A’s income tax return for 2019 and not on 63 of the Internal Revenue Code inconsistency where the partner treats a A’s income tax return for 2018. A has not (subchapter C of chapter 63) and the partnership-related item consistently satisfied the requirements of paragraph (a) of regulations in this part, any adjustment with an incorrect schedule or other this section because A’s treatment of the to a partnership-related item (as defined information furnished by the income attributable to Partnership is in § 301.6241–1(a)(6)(ii)) is determined, partnership, see paragraph (d) of this inconsistent with the treatment of that item any tax imposed by chapter 1 of the section. For purposes of this section, the by Partnership on its partnership return. Internal Revenue Code (Code) term partner’s return includes any (ii) Example 2. B is a partner in Partnership during 2018. Partnership attributable thereto is assessed and return, statement, schedule, or list, and collected, and the applicability of any incurred start-up costs before it was actively any amendment or supplement thereto, engaged in its business. Partnership penalty, addition to tax, or additional filed by the partner with respect to any capitalized these costs on its 2018 amount that relates to an adjustment to tax imposed by the Internal Revenue partnership return. B deducted his any partnership-related item is Code (Code). distributive share of the start-up costs on B’s determined at the partnership level (2) Partner that is a partnership with 2018 income tax return. B has not satisfied under subchapter C of chapter 63. an election in effect under section the requirements of paragraph (a) of this (b) Legal and factual determinations 6221(b). The rules of this section apply section because B’s treatment of the start-up at the partnership level. Except as costs is inconsistent with the treatment of to all partners, including a partnership- that item by Partnership on its partnership otherwise provided under subchapter C partner (as defined in § 301.6241– of chapter 63, any legal or factual return. 1(a)(7)) that has an election in effect (iii) Example 3. C is a partner in determinations underlying any under section 6221(b) for any taxable Partnership during 2018. Partnership reports adjustment or determination made in year. Accordingly, unless the a loss of $100,000 on its partnership return accordance with paragraph (a) of this requirements of paragraph (c) of this for 2018. On the 2018 Schedule K–1 attached section are also determined at the section are satisfied, a partnership- to the partnership return, Partnership reports partnership level under subchapter C of partner must treat partnership-related $5,000 as C’s distributive share of that loss. chapter 63. For instance, determinations On the 2018 Schedule K–1 furnished to C, items of a partnership in which it is a however, Partnership reports $15,000 as C’s under this paragraph (b) include any partner consistent with the treatment of determinations necessary to calculate distributive share of the loss. C reports the such items on the partnership return $15,000 loss on C’s 2018 income tax return. the imputed underpayment or any filed by the partnership in which it is C has not satisfied the requirements of modification of the imputed a partner. paragraph (a) of this section because C underpayment under section 6225 and (3) Partnership does not file a return. reported C’s distributive share of the loss in the period of limitations on making A partner’s treatment of a partnership- a manner that is inconsistent with how C’s adjustments under subchapter C of distributive share of the loss was reported on related item attributable to a partnership the 2018 partnership return actually filed. chapter 63. that does not file a return is per se (c) Applicability date—(1) In general. See, however, paragraph (d) of this section inconsistent. Except as provided in paragraph (c)(2) for the election to be treated as having of this section, this section applies to (4) Treatment of items on a reported the inconsistency where the partner treats an item consistently with an incorrect partnership taxable years beginning partnership return. For purposes of this section, the treatment of a partnership- schedule. after December 31, 2017, and ending (iv) Example 4. D was a partner in after August 12, 2018. related item on a partnership return includes— Partnership during 2018. Partnership reports (2) Election under § 301.9100–22 in a loss of $100,000 on its partnership return effect. This section applies to any (i) The treatment of such item on the for 2018. In 2020, Partnership files an AAR partnership taxable year beginning after partnership’s return of partnership under section 6227 reporting that the amount November 2, 2015, and before January 1, income filed with the Internal Revenue of the loss on its 2018 partnership return is 2018, for which a valid election under Service (IRS) under section 6031, and $90,000, rather than $100,000 as originally § 301.9100–22 is in effect. any amendment or supplement thereto, reported. Pursuant to section 6227, including an administrative adjustment Partnership elects to have its partners take ■ Par. 3. Section 301.6222–1 is added to the adjustment into account, and furnishes D read as follows: request (AAR) filed pursuant to section 6227; and a statement showing D’s share of the reduced loss for 2018. D fails to take his share of the § 301.6222–1 Partner’s return must be (ii) The treatment of such item on any reduced loss for 2018 into account in consistent with partnership return. statement, schedule or list, and any accordance with section 6227. D has not (a) Consistent treatment of amendment or supplement thereto, filed satisfied the requirements of paragraph (a) of partnership-related items—(1) In by the partnership with the IRS, this section because D has not taken into

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account his share of the loss in a manner (2) Assessment and collection of tax. (c) Notification to the IRS when items consistent with how Partnership treated such The IRS may assess and collect any attributable to a partnership are treated items on the partnership return actually filed. underpayment of tax resulting from an inconsistently—(1) In general. (v) Example 5. E was a partner in Paragraphs (a) and (b) of this section Partnership during 2018. In 2021, adjustment described in paragraph (b)(1) Partnership receives a notice of final of this section in the same manner as if (regarding the consistent treatment of partnership adjustment (FPA) in an the underpayment of tax were on partnership-related items and the effect administrative proceeding under subchapter account of a mathematical or clerical of inconsistent treatment) do not apply C of chapter 63 with respect to Partnership’s error appearing on the partner’s return, to partnership-related items identified 2018 taxable year. The FPA reflects an except that the procedures under as inconsistent (or that may be imputed underpayment. Partnership properly section 6213(b)(2) for requesting inconsistent) in a statement that the elects the application of section 6226 with abatement of an assessment do not partner provides to the IRS according to respect to the imputed underpayment and the forms, instructions, and other files with the IRS and furnishes to E a apply. statement of E’s share of adjustments with (3) Effect when partner is a guidance prescribed by the IRS. Instead, respect to Partnership’s 2018 taxable year. E partnership. For the effect of a failure to the procedures in paragraph (c)(3) of fails to take his share of the adjustments into satisfy the requirements of paragraph (a) this section apply. A statement does not account in accordance with section 6226. E of this section where the partner is itself identify an inconsistency for purposes has not satisfied the requirements of a partnership (a partnership-partner), of this paragraph (c) unless it is attached paragraph (a) of this section because E has to the partner’s return on which the not taken into account his share of see section 6232(d)(1)(B) and § 301.6232–1(d). partnership-related item is treated adjustments with respect to Partnership’s inconsistently. 2018 taxable year in a manner consistent (4) Examples. The following examples with how Partnership treated such items on (2) Coordination with section 6223. illustrate the rules of this paragraph (b). Paragraph (c)(1) of this section is not the section 6226 statement filed with the IRS. For purposes of these examples, each (vi) Example 6. F was a partner in applicable to a partnership-related item Partnership during 2018. F has a valid partnership is subject to the provisions the treatment of which is binding on the election under section 6221(b) in effect with of subchapter C of chapter 63, and each partner because of actions taken by the respect to F’s 2018 partnership taxable year. partnership and its partners are calendar partnership under subchapter C of Notwithstanding F’s election under section year taxpayers, unless otherwise stated. chapter 63 or because of a final decision 6221(b) for its 2018 taxable year, F is subject (i) Example 1. H, an individual, is a in a proceeding with respect to the to section 6222 for taxable year 2018. F must partner in Partnership. On its partnership treat, on its 2018 partnership return, any partnership under subchapter C of return for taxable year 2018, Partnership items attributable to F’s interest in chapter 63. For instance, the provisions reports $100,000 in ordinary income. On the Partnership in a manner that is consistent of paragraph (c)(1) of this section do not Schedule K–1 attached to the partnership with the treatment of those items on the 2018 apply with respect to the partner’s partnership return actually filed by return, as well as on the Schedule K–1 treatment of a partnership-related item furnished to H, Partnership reports $15,000 Partnership. reflected on a statement described in (vii) Example 7. G was a partner in as H’s distributive share of the $100,000 in ordinary income. H reports only $5,000 of the § 301.6226–2 filed by the partnership Partnership during 2018. G’s taxable year with the IRS. See § 301.6226–1(e) ends on the same day as Partnership’s 2018 $15,000 of ordinary income on his 2018 taxable year. Partnership did not file a income tax return. The IRS may determine (regarding the binding nature of partnership return for its 2018 taxable year. the amount of tax that results from adjusting statements described in § 301.6226–2). G files an income tax return for its 2018 the ordinary income attributable to H’s Any underpayment resulting from the taxable year and reports G’s share of a loss interest in Partnership reported on H’s 2018 inconsistent treatment of an item attributable to G’s interest in Partnership. income tax return from $5,000 to $15,000 and described in this paragraph (c)(2) may Because Partnership failed to file a assess that resulting underpayment in tax as be assessed and collected in accordance partnership return, G’s treatment of such loss if it were on account of a mathematical or with paragraph (b)(2) of this section. is per se inconsistent pursuant to paragraph clerical error appearing on H’s return. H may (3) Partner protected only to extent of (a)(3) of this section. not request an abatement of that assessment under section 6213(b). notification. A partner who reports the (b) Effect of inconsistent treatment— (ii) Example 2. J was a partner in inconsistent treatment of a partnership- (1) Determination of underpayment of Partnership during 2018. In 2021, related item is not subject to paragraphs tax resulting from inconsistent Partnership receives an FPA in an (a) and (b) of this section only with treatment. If a partner fails to satisfy the administrative proceeding under subchapter respect to those items identified in the requirements of paragraph (a) of this C of chapter 63 with respect to Partnership’s statement described in paragraph (c)(1) section, unless the partner provides 2018 taxable year. The FPA reflects an of this section. Thus, if a partner notice in accordance with paragraph (c) imputed underpayment. Partnership properly notifying the IRS with respect to one of this section, the IRS may adjust the elects the application of section 6226 with partnership-related item does not report inconsistently reported partnership- respect to the imputed underpayment and the inconsistent treatment of another related item on the partner’s return to files with the IRS and furnishes to J a statement of J’s share of adjustments with partnership-related item, the IRS may make it consistent with the treatment of respect to Partnership’s 2018 taxable year. J determine the amount of tax that results such item on the partnership return (or fails to report one adjustment reflected on the from adjusting the unidentified, where no partnership return was filed, statement, J’s share of a decrease in the inconsistently reported item on the remove any treatment of such items amount of losses for 2018, on J’s return as partner’s return to make it consistent from the partner’s return) and determine required by section 6226. The IRS may with the treatment of such item on the any underpayment of tax that results determine the amount of tax that results from partnership return and assess the from that adjustment. For purposes of adjusting the decrease in the amount of resulting underpayment of tax in this section, except as provided in losses on J’s return to be consistent with the accordance with paragraph (b)(2) of this paragraph (b)(3) of this section, the amount included on the section 6226 statement filed with the IRS and may assess section. underpayment of tax is the amount by the resulting underpayment in tax as if it (4) Adjustment after notification—(i) which the correct tax, as determined by were on account of a mathematical or clerical In general. If a partner notifies the IRS making the partner’s return consistent error appearing on J’s return. J may not of the inconsistent treatment of a with the partnership return, exceeds the request an abatement of that assessment partnership-related item in accordance tax shown on the partner’s return. under section 6213(b). with paragraph (c)(1) of this section and

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the IRS disagrees with the inconsistent of the deduction in accordance with (2) Time and manner of making treatment, the IRS may adjust the paragraph (c)(1) of this section, but not the election—(i) In general. An election identified, inconsistently reported item inconsistent treatment of the gain. Because K under paragraph (d) of this section must in a proceeding with respect to the did not notify the IRS of the inconsistent be filed in writing with the IRS office set treatment of the gain in accordance with partner. Nothing in this paragraph paragraph (c)(1) of this section, the IRS may forth in the notice that notified the (c)(4)(i) precludes the IRS from also determine the amount of tax that results from partner of the inconsistency no later conducting a proceeding with respect to adjusting the gain reported on K’s 2018 than 60 days after the date of such the partnership. If the IRS conducts a income tax return in order to make the notice. proceeding with respect to the treatment of that gain consistent with how (ii) Contents of election. The election partnership regarding the identified, the gain was treated on Partnership’s described in paragraph (d)(2)(i) of this inconsistently reported item, each partnership return. Pursuant to paragraph section must be— partner of the partnership, including (c)(3) of this section, the IRS may assess and (A) Clearly identified as an election collect the underpayment of tax resulting any partner that notified the IRS of under section 6222(c)(2)(B); from the adjustment to the gain as if it were (B) Signed by the partner making the inconsistent treatment in accordance on account of a mathematical or clerical error with paragraph (c)(1) of this section, is appearing on K’s return. election; bound by actions taken by the (ii) Example 2. L is a partner in (C) Accompanied by a copy of the partnership and by any final decision in Partnership during 2018. On its 2018 statement, schedule, or other form the proceeding with respect to the partnership return, Partnership treats partner furnished to the partner by the partnership. See paragraph (c)(2) of this L’s distributive share of ordinary loss partnership and a copy of the IRS notice attributable to Partnership as $8,000. L, section. that notified the partner of the however, claims an ordinary loss of $9,000 as inconsistency; and (ii) Adjustments in partner attributable to Partnership on its 2018 proceeding. In a proceeding with (D) Include any other information income tax return and notifies the IRS of the required in forms, instructions, or other respect to a partner described in inconsistent treatment in accordance with paragraph (c)(4)(i) of this section, the paragraph (c)(1) of this section. As a result of guidance prescribed by the IRS. (iii) Treatment of partnership-related IRS may adjust any identified, the notice of inconsistent treatment, the IRS item is unclear. Generally, the inconsistently reported partnership- conducts a separate proceeding under requirement described in paragraph related item to make the item consistent subchapter B of chapter 63 of the Internal Revenue Code with respect to L’s 2018 (d)(2)(ii)(C) of this section will be with the treatment of that item on the income tax return, a proceeding to which satisfied by attaching a copy of the partnership return or determine that the Partnership is not a party. During the statement, schedule, or other form correct treatment of such item differs proceeding, the IRS determines that the furnished to the partner by the from the treatment on the partnership proper amount of L’s distributive share of the partnership to the election (in addition return and instead adjust the item to ordinary loss from Partnership is $3,000. to a copy of the IRS notice that notified reflect the correct treatment, During the same proceeding, the IRS also the partner of the inconsistency). notwithstanding the treatment of that determines that L overstated a charitable However, if it is not clear from the item on the partnership return. The IRS contribution deduction in the amount of $2,500 on its 2018 income tax return. The statement, schedule, or other form may also adjust any item on the determination of the adjustment of L’s share furnished by the partnership that the partner’s return, including items that are of ordinary loss is not binding on partner’s treatment of the partnership- not partnership-related items. Any final Partnership. The charitable contribution related item on the partner’s return is decision with respect to an inconsistent deduction is not attributable to Partnership consistent, the election must also position in a proceeding to which the or to another partnership subject to the include an explanation of how the partnership is not a party is not binding provisions of subchapter C of chapter 63. The treatment of such item on the statement, on the partnership. IRS may determine the amount of tax that results from adjusting the $9,000 ordinary schedule, or other form furnished by the (5) Limitation on treating partnership- loss deduction to $3,000 and from adjusting related items inconsistently after notice partnership is consistent with the the charitable contribution deduction. treatment of the item on the partner’s of administrative proceeding. After a Pursuant to paragraph (c)(4)(ii) of this notice of administrative proceeding return, including with respect to the section, the IRS is not limited to only characterization, timing, and amount of with respect to a partnership taxable adjusting the ordinary loss of $9,000, as year has been mailed by the IRS under originally reported on L’s partner return, to such item. (3) Example. M is a partner in section 6231, a partner may not notify $8,000, as originally reported by Partnership Partnership for 2018. Partnership is the IRS the partner is treating a on its partnership return, nor is the IRS subject to subchapter C of chapter 63, partnership-related item on the partner’s prohibited from adjusting the charitable contribution deduction in the proceeding and both Partnership and M are return inconsistently with how such with respect to L. calendar year taxpayers. On its 2018 item was treated on the partnership partnership return, Partnership reports return for such taxable year, except as (d) Partner receiving incorrect that M’s distributive share of ordinary provided in § 301.6225–2. information—(1) In general. A partner is (6) Examples. The following examples treated as having complied with section income attributable to Partnership is illustrate the rules of this paragraph (c). 6222(c)(1)(B) and paragraph (c)(1) of this $1,000. Partnership furnishes to M a For purposes of these examples, each section with respect to a partnership- Schedule K–1 for 2018 showing $500 as partnership is subject to the provisions related item if the partner— M’s distributive share of ordinary of subchapter C of chapter 63, and each (i) Demonstrates that the treatment of income. M reports $500 of ordinary partnership and partner is a calendar such item on the partner’s return is income attributable to Partnership on its year taxpayer, unless otherwise stated. consistent with the treatment of that 2018 income tax return consistent with item on the statement, schedule, or the Schedule K–1 furnished to M. The (i) Example 1. K is a partner in Partnership other form prescribed by the IRS and IRS notifies M that M’s treatment of the during 2018. K treats a deduction and a ordinary income attributable to capital gain attributable to Partnership on K’s furnished to the partner by the 2018 income tax return in a manner that is partnership; and Partnership on its 2018 income tax inconsistent with the treatment of those (ii) The partner makes an election in return is inconsistent with how items by Partnership on its 2018 partnership accordance with paragraph (d)(2) of this Partnership treated the ordinary income return. K reports the inconsistent treatment section. allocated to M on its 2018 partnership

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return. Within 60 days of receiving the partnership waives its right to such FPA (2) Calculation of the total netted notice from the IRS of the inconsistency, under section 6232(d)(2). See partnership adjustment. For purposes of M files an election with the IRS in § 301.6232–1(d)(2). For the alternative to determining an imputed underpayment accordance with paragraph (d)(2) of this payment of the imputed underpayment under paragraph (b)(1) of this section, section. Because M made a valid by the partnership, see § 301.6226–1. If the total netted partnership adjustment election under section 6222(c)(2)(B) and a partnership pays an imputed is the sum of all net positive paragraph (d)(1) of this section, M is underpayment, the partnership’s adjustments in the reallocation grouping treated as having notified the IRS of the expenditure for the imputed described in paragraph (c)(2) of this inconsistency with respect to the underpayment is taken into account by section and the residual grouping ordinary income attributable to the partnership in accordance with described in paragraph (c)(5) of this Partnership under paragraph (c)(1) of § 301.6241–4. For interest and penalties section. this section. with respect to an imputed (3) Adjustments to items for which tax (e) Applicability date—(1) In general. underpayment, see section 6233. has been collected under chapters 3 and Except as provided in paragraph (e)(2) (3) Imputed underpayment set forth in 4 of the Internal Revenue Code. A of this section, this section applies to notice of proposed partnership partnership adjustment is disregarded partnership taxable years beginning adjustment. An imputed underpayment for purposes of calculating the imputed after December 31, 2017, and ending set forth in a notice of proposed underpayment under paragraph (b) of after August 12, 2018. partnership adjustment (NOPPA) under this section to the extent that the IRS (2) Election under § 301.9100–22 in section 6231(a)(2) is determined in has collected the tax required to be effect. This section applies to any accordance with paragraph (b) of this withheld under chapter 3 or chapter 4 partnership taxable year beginning after section without regard to any (as defined in § 301.6241–6(b)(2)(ii) and November 2, 2015, and before January 1, modification under § 301.6225–2. (iii)) that is attributable to the 2018, for which a valid election under Modifications under § 301.6225–2, if partnership adjustment. See § 301.6241– § 301.9100–22 is in effect. allowed by the IRS, may change the 6(b)(3) for rules that apply when a ■ Par. 4. Section 301.6225–1 is added to amount of an imputed underpayment partnership pays an imputed read as follows: set forth in the NOPPA and determined underpayment that includes a in accordance with paragraph (b) of this partnership adjustment to an amount § 301.6225–1 Partnership adjustment by subject to withholding (as defined in the Internal Revenue Service. section. Only the partnership adjustments set forth in a NOPPA are § 301.6241–6(b)(2)(i)) under chapter 3 or (a) Imputed underpayment based on chapter 4 for which such tax has not yet partnership adjustments—(1) In general. taken into account for purposes of determining an imputed underpayment been collected. In the case of any partnership (4) Treatment of adjustment as zero under this section and for any adjustments (as defined in § 301.6241– for purposes of calculating the imputed modification under § 301.6225–2. 1(a)(6)) by the Internal Revenue Service underpayment. If the effect of one (b) Determination of an imputed (IRS), if the adjustments result in an partnership adjustment is reflected in imputed underpayment (as determined underpayment—(1) In general. In the one or more other partnership in accordance with paragraph (b) of this case of any partnership adjustment by adjustments, the IRS may treat the one section), the partnership must pay an the IRS, an imputed underpayment is adjustment as zero solely for purposes amount equal to such imputed determined by– of calculating the imputed underpayment in accordance with (i) Grouping the partnership underpayment. paragraph (a)(2) of this section. If the adjustments in accordance with (c) Grouping of partnership adjustments do not result in an imputed paragraph (c) of this section and, if adjustments—(1) In general. To underpayment (as described in appropriate, subgrouping such determine an imputed underpayment paragraph (f) of this section), such adjustments in accordance with under paragraph (b) of this section, adjustments must be taken into account paragraph (d) of this section; partnership adjustments are placed into by the partnership in the adjustment (ii) Netting the adjustments in one of four groupings. These groupings year (as defined in § 301.6241–1(a)(1)) accordance with paragraph (e) of this are the reallocation grouping described in accordance with § 301.6225–3. section; in paragraph (c)(2) of this section, the Partnership adjustments may result in (iii) Calculating the total netted credit grouping described in paragraph more than one imputed underpayment partnership adjustment in accordance (c)(3) of this section, the creditable pursuant to paragraph (g) of this section. with paragraph (b)(2) of this section; expenditure grouping described in Each imputed underpayment (iv) Multiplying the total netted paragraph (c)(4) of this section, and the determined under this section is based partnership adjustment by the highest residual grouping described in solely on partnership adjustments with rate of Federal income tax in effect for paragraph (c)(5) of this section. respect to a single taxable year. the reviewed year under section 1 or 11; Adjustments in groupings may be (2) Partnership pays the imputed and placed in subgroupings, as appropriate, underpayment. An imputed (v) Increasing or decreasing the in accordance with paragraph (d) of this underpayment (determined in product that results under paragraph section. The IRS may, in its discretion, accordance with paragraph (b) of this (b)(1)(iv) of this section by— group adjustments in a manner other section and included in a notice of final (A) Any amounts treated as net than the manner described in this partnership adjustment (FPA) under positive adjustments (as defined in paragraph (c) when such grouping section 6231(a)(3)) must be paid by the paragraph (e)(4)(i) of this section) under would appropriately reflect the facts partnership in the same manner as if the paragraph (e)(3)(ii) of this section; and and circumstances. For requests to imputed underpayment were a tax (B) Except as provided in paragraph modify the groupings, see § 301.6225– imposed for the adjustment year in (e)(3)(ii) of this section, any amounts 2(d)(6). accordance with § 301.6232–1. The FPA treated as net negative adjustments (as (2) Reallocation grouping—(i) In will include the amount of any imputed defined in paragraph (e)(4)(ii) of this general. Any adjustment that allocates underpayment, as modified under section) under paragraph (e)(3)(ii) of this or reallocates a partnership-related item § 301.6225–2 if applicable, unless the section. to and from a particular partner or

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partners is a reallocation adjustment. adjustment to a creditable foreign tax (2) Definition of negative adjustments Except in the case of an adjustment to expenditure (CFTE) as defined in and positive adjustments—(i) In general. a credit (as described in paragraph (c)(3) § 1.704–1(b)(4)(viii)(b) of this chapter, For purposes of this section, partnership of this section) or to a creditable including any reallocation adjustment to adjustments made by the IRS are treated expenditure (as described in paragraph a CFTE. as follows: (c)(4) of this section), reallocation (5) Residual grouping—(i) In general. (A) An increase in an item of gain is adjustments are placed in the Any adjustment to a partnership-related treated as an increase in an item of reallocation grouping. Adjustments that item not described in paragraph (c)(2), income; reallocate a credit to and from a (3), or (4) of this section is placed in the (B) A decrease in an item of gain is particular partner or partners are placed residual grouping. treated as a decrease in an item of in the credit grouping (see paragraph (ii) Adjustments to partnership- income; (c)(3) of this section), and adjustments related items that are not allocated (C) An increase in an item of loss or that reallocate a creditable expenditure under section 704(b). The residual deduction is treated as a decrease in an to and from a particular partner or grouping includes any adjustment to a item of income; and partners are placed in the creditable partnership-related item that derives (D) A decrease in an item of loss or expenditure grouping (see paragraph from an item that would not have been deduction is treated as an increase in an (c)(4) of this section). required to be allocated by the item of income. (ii) Each reallocation adjustment partnership to a reviewed year partner (ii) Negative adjustment. A negative results in at least two separate under section 704(b). adjustment is any adjustment that is a adjustments. Each reallocation (6) Recharacterization adjustments— decrease in an item of income, a adjustment generally results in at least (i) Recharacterization adjustment partnership adjustment treated under two separate adjustments. One defined. An adjustment that changes the paragraph (d)(2)(i) of this section as a adjustment reverses the effect of the character of a partnership-related item is decrease in an item of income, or an improper allocation of a partnership- a recharacterization adjustment. For increase in an item of credit. related item, and the other adjustment instance, an adjustment that changes a (iii) Positive adjustment—(A) In effectuates the proper allocation of the loss from ordinary to capital or from general. A positive adjustment is any partnership-related item. Generally, a active to passive is a recharacterization adjustment that is not a negative reallocation adjustment results in one adjustment. adjustment as defined in paragraph positive adjustment (as defined in (ii) Grouping recharacterization (d)(2)(ii) of this section. paragraph (d)(2)(iii) of this section) and adjustments. A recharacterization (B) Treatment of adjustments that one negative adjustment (as defined in adjustment is placed in the appropriate cannot be allocated under section paragraph (d)(2)(ii) of this section). grouping as described in paragraphs 704(b). For purposes of determining an (3) Credit grouping. Each adjustment (c)(2) through (5) of this section. imputed underpayment under this to a partnership-related item that is (iii) Recharacterization adjustments section, an adjustment described in reported or could be reported by a result in two partnership adjustments. paragraph (c)(5)(ii) of this section that partnership as a credit on the In general, a recharacterization could result in an increase in income or partnership’s return, including a adjustment results in at least two decrease in a loss, deduction, or credit reallocation adjustment, is placed in the separate adjustments in the appropriate for any person without regard to any credit grouping. grouping under paragraph (c)(6)(ii) of particular person’s specific (4) Creditable expenditure grouping— this section. One adjustment reverses circumstances is treated, to the extent (i) In general. Each adjustment to a the improper characterization of the appropriate, either as a positive creditable expenditure, including a partnership-related item, and the other adjustment to income or to a credit. reallocation adjustment to a creditable adjustment effectuates the proper (3) Subgrouping rules—(i) In general. expenditure, is placed in the creditable characterization of the partnership- Except as otherwise provided in this expenditure grouping. related item. A recharacterization paragraph (d)(3), an adjustment is (ii) Adjustment to a creditable adjustment results in two adjustments subgrouped according to how the expenditure—(A) In general. For regardless of whether the amount of the adjustment would be required to be purposes of this section, an adjustment partnership-related item is being taken into account separately under to a partnership-related item is treated adjusted. Generally, recharacterization section 702(a) or any other provision of as an adjustment to a creditable adjustments result in one positive the Code, regulations, forms, expenditure if any person could take the adjustment and one negative instructions, or other guidance item that is adjusted (or item as adjusted adjustment. prescribed by the IRS applicable to the if the item was not originally reported (d) Subgroupings—(1) In general. If all adjusted partnership-related item. A by the partnership) as a credit. See partnership adjustments are positive negative adjustment must be placed in § 1.704–1(b)(4)(ii) of this chapter. For adjustments, this paragraph (d) does not the same subgrouping as another instance, if the adjustment is a apply. If any partnership adjustment adjustment if the negative adjustment reduction of qualified research within any grouping described in and the other adjustment would have expenses, the adjustment is to a paragraph (c) of this section is a been properly netted at the partnership creditable expenditure for purposes of negative adjustment, the adjustments level and such netted amount would this section because any person within that grouping are subgrouped in have been required to be allocated to the allocated the qualified research accordance with this paragraph (d). The partners of the partnership as a single expenses by the partnership could claim IRS may, in its discretion, subgroup partnership-related item for purposes of a credit with respect to their allocable adjustments in a manner other than the section 702(a), other provision of the portion of such expenses under section manner described in this paragraph (d) Code, regulations, forms, instructions, 41, rather than a deduction under when such subgrouping would or other guidance prescribed by the IRS. section 174. appropriately reflect the facts and For purposes of creating subgroupings (B) Creditable foreign tax circumstances. For requests to modify under this section, if any adjustment expenditures. The creditable the subgroupings, see § 301.6225– could be subject to any preference, expenditure grouping includes each 2(d)(6). limitation, or restriction under the Code

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(or not allowed, in whole or in part, CFTEs are included within the same (e)(3)(ii) and (iii) of this section, each against ordinary income) if taken into subgrouping only if each adjustment net positive adjustment (as defined in account by any person, the adjustment relates to CFTEs in the same separate paragraph (e)(4)(i) of this section) with is placed in a separate subgrouping from category, and each adjusted partnership- respect to a particular grouping or all other adjustments within the related item would be allocated to the subgrouping that results after netting the grouping. partners in the same ratio had those adjustments in accordance with this (ii) Subgrouping reallocation items been properly reflected on the paragraph (e) is included in the adjustments—(A) Reallocation partnership return for the reviewed calculation of the total netted adjustments in the reallocation year. partnership adjustment under paragraph grouping. Each positive adjustment and (C) [Reserved] (b)(2) of this section. Each net negative each negative adjustment resulting from (iv) Subgrouping recharacterization adjustment (as defined in paragraph a reallocation adjustment as described adjustments. Each positive adjustment (e)(4)(ii) of this section) with respect to in paragraph (c)(2)(ii) of this section is and each negative adjustment resulting a grouping or subgrouping that results placed in its own separate subgrouping from a recharacterization adjustment as after netting the adjustments in within the reallocation grouping. For described in paragraph (c)(6) of this accordance with this paragraph (e) is instance, if the reallocation adjustment section is placed in its own separate excluded from the calculation of the reallocates a deduction from one partner subgrouping within the residual total netted partnership adjustment to another partner, the decrease in the grouping. If a particular partner or group under paragraph (b)(2) of this section. deduction (positive adjustment) of partners has two or more Adjustments underlying a net negative allocated to the first partner is placed in recharacterization adjustments allocable adjustment described in the preceding a subgrouping within the reallocation to such partner or group, such sentence are adjustments that do not grouping separate from the increase in adjustments may be subgrouped in result in an imputed underpayment (as the deduction (negative adjustment) accordance with paragraph (d)(3)(i) of described in paragraph (f) of this allocated to the second partner. this section and netted in accordance section). Notwithstanding the requirement that with paragraph (e) of this section. (ii) Credit grouping. Any net positive reallocation adjustments be placed into (e) Netting adjustments within each adjustment or net negative adjustment separate subgroupings, if a particular grouping or subgrouping—(1) In general. in the credit grouping (including any partner or group of partners has two or All adjustments within a subgrouping such adjustment with respect to a more reallocation adjustments allocable determined in accordance with subgrouping within the credit grouping) to such partner or group, such paragraph (d) of this section are netted is excluded from the calculation of the adjustments may be subgrouped in in accordance with this paragraph (e) to total netted partnership adjustment. A accordance with paragraph (d)(3)(i) of determine whether there is a net net positive adjustment described in this section and netted in accordance positive adjustment (as defined in this paragraph (e)(3)(ii) is taken into with paragraph (e) of this section. paragraph (e)(4)(i) of this section) or net account under paragraph (b)(1)(v) of this (B) Reallocation adjustments in the negative adjustment (as defined in section. A net negative adjustment credit grouping. In the case of a paragraph (e)(4)(ii) of this section) for described in this paragraph (e)(3)(ii), reallocation adjustment to a credit, that subgrouping. If paragraph (d) of this including a negative adjustment to a which is placed in the credit grouping section does not apply because a credit resulting from a reallocation pursuant to paragraph (c)(3) of this grouping only includes positive adjustment that was placed in a separate section, the decrease in credits allocable adjustments, all adjustments in that subgrouping pursuant to paragraph to one partner or group of partners is grouping are netted in accordance with (d)(3)(ii)(B) of this section, is treated as treated as a positive adjustment, and the this paragraph (e). For purposes of this an adjustment that does not result in an increase in credits allocable to another paragraph (e), netting means summing imputed underpayment in accordance partner or group of partners is treated as all adjustments together within each with paragraph (f)(1)(i) of this section, a negative adjustment. Each positive grouping or subgrouping, as unless the IRS determines that such net adjustment and each negative appropriate. negative adjustment should be taken adjustment resulting from a reallocation (2) Limitations on netting into account under paragraph (b)(1)(v) adjustment to credits is placed in its adjustments. Positive adjustments and of this section. own separate subgrouping within the negative adjustments may only be (iii) Treatment of creditable credit grouping. netted against each other if they are in expenditures—(A) Creditable foreign tax (iii) Subgroupings within the the same grouping in accordance with expenditures. A net decrease to a CFTE creditable expenditure grouping—(A) In paragraph (c) of this section. If a in any CFTE subgrouping (as described general. Each adjustment in the negative adjustment is in a subgrouping in paragraph (d)(3)(iii) of this section) is creditable expenditure grouping in accordance with paragraph (d) of this treated as a net positive adjustment described in paragraph (c)(4) of this section, the negative adjustment may described in paragraph (e)(3)(ii) of this section is subgrouped in accordance only net with a positive adjustment also section and is excluded from the with paragraphs (d)(3)(i) and (iii) of this in that same subgrouping in accordance calculation of the total netted section. For rules related to creditable with paragraph (d) of this section. An partnership adjustment under paragraph expenditures other than CFTEs, see adjustment in one grouping or (b)(2) of this section. A net increase to paragraph (d)(3)(iii)(C) of this section. subgrouping may not be netted against a CFTE in any CFTE subgrouping is (B) Subgroupings for adjustments to an adjustment in any other grouping or treated as a net negative adjustment CFTEs. Each adjustment to a CFTE is subgrouping. Adjustments from one described in paragraph (e)(3)(i) of this subgrouped based on the separate taxable year may not be netted against section. For rules related to creditable category of income to which the CFTE adjustments from another taxable year. expenditures other than CFTEs, see relates in accordance with section (3) Results of netting adjustments paragraph (e)(3)(iii)(B) of this section. 904(d) and the regulations in part 1 of within groupings or subgroupings—(i) (B) [Reserved] this chapter, and to account for any Groupings other than the credit and (4) Net positive adjustment and net different allocation of the CFTE between creditable expenditure groupings. negative adjustment defined—(i) Net partners. Two or more adjustments to Except as described in paragraphs positive adjustment. A net positive

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adjustment means an amount that is particular imputed underpayment is determine that partnership adjustments greater than zero which results from based on the facts and circumstances that could be taken into account to netting adjustments within a grouping and nature of the partnership calculate one or more specific imputed or subgrouping in accordance with this adjustments. See § 301.6225–2(d)(6) for underpayments under this paragraph paragraph (e). A net positive adjustment modification of the number and (g)(2)(iii)(A) for a partnership taxable includes a positive adjustment that was composition of imputed year are more appropriately taken into not netted with any other adjustment. A underpayments. account in determining the general net positive adjustment includes a net (2) Types of imputed imputed underpayment for such taxable decrease in an item of credit. underpayments—(i) In general. There year. For instance, the IRS may (ii) Net negative adjustment. A net are two types of imputed determine that it is more appropriate to negative adjustment means any amount underpayments: A general imputed calculate only the general imputed which results from netting adjustments underpayment (described in paragraph underpayment if, when calculating the within a grouping or subgrouping in (g)(2)(ii) of this section) and a specific specific imputed underpayment accordance with this paragraph (e) that imputed underpayment (described in requested by the partnership, there is an is not a net positive adjustment (as paragraph (g)(2)(iii) of this section). increase in the number of the defined in paragraph (e)(4)(i) of this Each type of imputed underpayment is partnership adjustments that after section). A net negative adjustment separately calculated in accordance grouping and netting result in net includes a negative adjustment that was with this section. negative adjustments and are not netted with any other adjustment. (ii) General imputed underpayment. disregarded in calculating the specific (f) Partnership adjustments that do The general imputed underpayment is imputed underpayment. not result in an imputed calculated based on all adjustments (B) Adjustments that do not result in underpayment—(1) In general. Except (other than adjustments that do not an imputed underpayment associated as otherwise provided in paragraph (e) result in an imputed underpayment with a specific imputed underpayment. of this section, a partnership adjustment under paragraph (f) of this section) that If the IRS designates a specific imputed does not result in an imputed are not taken into account to determine underpayment, the IRS will designate underpayment if— a specific imputed underpayment under which adjustments that do not result in (i) After grouping, subgrouping, and paragraph (g)(2)(iii) of this section. an imputed underpayment, if any, are netting the adjustments as described in There is only one general imputed appropriate to associate with that paragraphs (c), (d), and (e) of this underpayment in any administrative specific imputed underpayment. If the section, the result of netting with proceeding. If there is one imputed adjustments underlying that specific respect to any grouping or subgrouping underpayment in an administrative imputed underpayment are reallocation that includes a particular partnership proceeding, it is a general imputed adjustments or recharacterization adjustment is a net negative adjustment underpayment and may take into adjustments, the net negative (as described in paragraph (e)(4)(ii) of account adjustments described in adjustment that resulted from the this section); or paragraph (g)(2)(iii) of this section, if reallocation or recharacterization is (ii) The calculation under paragraph any, and all adjustments that do not associated with the specific imputed (b)(1) of this section results in an result in that general imputed underpayment. Any adjustments that do amount that is zero or less than zero. underpayment (as described in not result in an imputed underpayment (2) Treatment of an adjustment that paragraph (f) of this section) are that are not associated with a specific does not result in an imputed associated with that general imputed imputed underpayment under this underpayment. Any adjustment that underpayment. paragraph (g)(2)(iii)(B) are associated does not result in an imputed (iii) Specific imputed with the general imputed underpayment (as described in underpayment—(A) In general. The IRS underpayment. paragraph (f)(1) of this section) is taken may, in its discretion, designate a (h) Examples. The following examples into account by the partnership in the specific imputed underpayment with illustrate the rules of this section. For adjustment year in accordance with respect to adjustments to a partnership- purposes of these examples, unless § 301.6225–3. If the partnership makes related item or items that were allocated otherwise stated, each partnership is an election pursuant to section 6226 to one partner or a group of partners that subject to the provisions of subchapter with respect to an imputed had the same or similar characteristics C of chapter 63 of the Code, each underpayment, the adjustments that do or that participated in the same or partnership and its partners are calendar not result in that imputed similar transaction or on such other year taxpayers, all partners are U.S. underpayment that are associated with basis as the IRS determines properly persons, the highest rate of income tax that imputed underpayment (as reflects the facts and circumstances. The in effect for all taxpayers is 40 percent described in paragraph (g)(2)(iii)(B) of IRS may designate more than one for all relevant periods, and no this section) are taken into account by specific imputed underpayment with partnership requests modification under the reviewed year partners in respect to any partnership taxable year. § 301.6225–2. accordance with § 301.6226–3. For instance, in a single partnership (g) Multiple imputed underpayments (1) Example 1. Partnership reports on its taxable year there may be a specific 2019 partnership return $100 of ordinary in a single administrative proceeding— imputed underpayment with respect to income and an ordinary deduction of ¥$70. (1) In general. The IRS, in its discretion, adjustments related to a transaction The IRS initiates an administrative may determine that partnership affecting some, but not all, partners of proceeding with respect to Partnership’s adjustments for the same partnership the partnership (such as adjustments 2019 taxable year and determines that taxable year result in more than one that are specially allocated to certain ordinary income was $105 instead of $100 ($5 adjustment) and that the ordinary imputed underpayment. The partners) and a second specific imputed ¥ ¥ ¥ determination of whether there is more underpayment with respect to deduction was $80 instead of $70 ( $10 adjustment). Pursuant to paragraph (c) of this than one imputed underpayment for any adjustments resulting from a section, the adjustments are both in the partnership taxable year, and if so, reallocation of a distributive share of residual grouping. The ¥$10 adjustment to which partnership adjustments are income from one partner to another the ordinary deduction would not have been taken into account to calculate any partner. The IRS may, in its discretion, netted at the partnership level with the $5

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adjustment to ordinary income and would section, the adjustments in the residual adjustments for 2019 and 2020 are not netted not have been required to be allocated to the grouping are summed for a total netted with each other. The 2019 adjustment of $25 partners of the partnership as a single partnership adjustment of $355. Under is the only adjustment for that year and a net partnership-related item for purposes of paragraph (b)(1)(iv) of this section, the total positive adjustment under paragraph (e)(4)(i) section 702(a), other provision of the Code, netted partnership adjustment is multiplied of this section, and therefore the total netted regulations, forms, instructions, or other by 40 percent (highest tax rate in effect), partnership adjustment for 2019 is $25 guidance prescribed by the IRS. Because the which results in $142. Under paragraph pursuant to paragraph (b)(2) of this section. ¥$10 adjustment to the ordinary deduction (b)(1)(v) of this section, the $142 is increased The $25 total netted partnership adjustment would result in a decrease in the imputed by the $2 credit adjustment, resulting in an is multiplied by 40 percent resulting in an underpayment if netted with the $5 imputed underpayment of $144. imputed underpayment of $10 for adjustment to ordinary income and because (4) Example 4. Partnership reported on its Partnership’s 2019 taxable year. The $25 it might be limited if taken into account by 2019 partnership return long-term capital increase in the deduction for 2020, a net any person, the ¥$10 adjustment must be gain of $125. In an administrative proceeding negative adjustment under paragraph placed in a separate subgrouping from the $5 with respect to Partnership’s 2019 taxable (e)(4)(ii) of this section, is an adjustment that adjustment to ordinary income. See year, the IRS determines the long-term does not result in an imputed underpayment paragraph (d)(3)(i) of this section. The total capital gain should have been reported as for that year. Therefore, there is no imputed netted partnership adjustment is $5, which ordinary income of $125. There are no other underpayment for 2020. results in an imputed underpayment of $2. adjustments for the 2019 taxable year. This (6) Example 6. On its partnership return The ¥$10 adjustment to the ordinary recharacterization adjustment results in two for the 2020 taxable year, Partnership deduction is a net negative amount and is an adjustments in the residual grouping reported ordinary income of $100 and a adjustment that does not result in an imputed pursuant to paragraph (c)(6) of this section: capital gain of $50. Partnership had four underpayment which is taken into account an increase in ordinary income of $125 ($125 equal partners during the 2020 tax year, all by Partnership in the adjustment year in adjustment) as well as a decrease of long- of whom were individuals. On its accordance with § 301.6225–3. term capital gain of $125 (¥$125 partnership return for the 2020 tax year, the (2) Example 2. The facts are the same as adjustment). The decrease in long-term capital gain was allocated to partner E and Example 1 in paragraph (h)(1) of this section, capital gain is a negative adjustment under the ordinary income was allocated to all except that the ¥$10 adjustment to the paragraph (d)(2)(ii) of this section and the partners based on their interests in ordinary deduction would have been netted increase in ordinary income is a positive Partnership. In an administrative proceeding at the partnership level with the $5 adjustment under paragraph (d)(2)(iii) of this with respect to Partnership’s 2020 taxable adjustment to ordinary income and would section. Under paragraph (d)(3)(i) of this year, the IRS determines that for 2020 the have been required to be allocated to the section, the adjustment to long-term capital capital gain allocated to E should have been partners of the partnership as a single gain is placed in a subgrouping separate from $75 instead of $50 and that Partnership partnership-related item for purposes of the adjustment to ordinary income because should have recognized an additional $10 in section 702(a), other provision of the Code, the reduction of long-term capital gain is ordinary income. In the NOPPA mailed by regulations, forms, instructions, or other required to be taken into account separately the IRS, the IRS may determine pursuant to guidance prescribed by the IRS. Therefore, pursuant to section 702(a). The $125 decrease paragraph (g) of this section that there is a the $5 adjustment and the ¥$10 adjustment in long-term capital gain is a net negative general imputed underpayment with respect must be placed in the same subgrouping adjustment in the long-term capital to the increase in ordinary income and a within the residual grouping. The $5 subgrouping and, as a result, is an adjustment specific imputed underpayment with respect adjustment and the ¥$10 adjustments are that does not result in an imputed to the increase in capital gain specially then netted in accordance with paragraph (e) underpayment under paragraph (f) of this allocated to E. of this section. Such netting results in a net section and is taken into account in (7) Example 7. On its partnership return negative adjustment (as defined under accordance with § 301.6225–3. The $125 for the 2020 taxable year, Partnership paragraph (e)(4)(ii) of this section) of ¥$5. increase in ordinary income results in a net reported a recourse liability of $100. During Pursuant to paragraph (f) of this section, the positive adjustment under paragraph (e)(4)(i) an administrative proceeding with respect to ¥$5 net negative adjustment is an of this section. Because the ordinary Partnership’s 2020 taxable year, the IRS adjustment that does not result in an imputed subgrouping is the only subgrouping determines that the $100 recourse liability underpayment. Because the only net resulting in a net positive adjustment, $125 should have been reported as a $100 adjustment is an adjustment that does not is the total netted partnership adjustment nonrecourse liability. Under paragraph result in an imputed underpayment, there is under paragraph (b)(2) of this section. Under (d)(2)(iii)(B) of this section, the adjustment to no imputed underpayment. paragraph (b)(1)(iv) of this section, $125 is the character of the liability is an adjustment (3) Example 3. Partnership reports on its multiplied by 40 percent resulting in an to an item that cannot be allocated under 2019 partnership return ordinary income of imputed underpayment of $50. section 704(b). The adjustment therefore is $300, long-term capital gain of $125, long- (5) Example 5. Partnership reported a $100 treated as a $100 increase in income because term capital loss of ¥$75, a depreciation deduction for certain expenses on its 2019 such recharacterization of a liability could deduction of ¥$100, and a tax credit that can partnership return and an additional $100 result in up to $100 in taxable income if be claimed by the partnership of $5. In an deduction with respect to the same type of taken into account by any person. The $100 administrative proceeding with respect to expenses on its 2020 partnership return. The increase in income is a positive adjustment Partnership’s 2019 taxable year, the IRS IRS initiates an administrative proceeding in the residual grouping under paragraph determines that ordinary income is $500 with respect to Partnership’s 2019 and 2020 (c)(5)(ii) of this section. There are no other ($200 adjustment), long-term capital gain is taxable years and determines that Partnership adjustments for the 2020 partnership taxable $200 ($75 adjustment), long-term capital loss reported a portion of the expenses as a year. The $100 positive adjustment is treated is ¥$25 ($50 adjustment), the depreciation deduction in 2019 that should have been as a net positive adjustment under paragraph deduction is ¥$70 ($30 adjustment), and the taken into account in 2020. Therefore, for (e)(4)(i) of this section, and the total netted tax credit is $3 ($2 adjustment). Pursuant to taxable year 2019, the IRS determines that partnership adjustment under paragraph paragraph (c) of this section, the adjustment Partnership should have reported a (b)(2) of this section is $100. Pursuant to to the tax credit is in the credit grouping deduction of $75 with respect to the paragraph (b)(1) of this section, the total under paragraph (c)(3) of this section. The expenses ($25 adjustment in the 2019 netted partnership adjustment is multiplied remaining adjustments are part of the residual grouping). For 2020, the IRS by 40 percent for an imputed underpayment residual grouping under paragraph (c)(5) of determines that Partnership should have of $40. this section. Pursuant to paragraph (d)(2) of reported a deduction of $125 with respect to (8) Example 8. Partnership reports on its this section, all of the adjustments in the these expenses (¥$25 adjustment in the 2020 2019 partnership return $400 of CFTEs in the residual grouping are positive adjustments. residual grouping). There are no other general category under section 904(d). The Because there are no negative adjustments, adjustments for the 2019 and 2020 IRS initiates an administrative proceeding there are no subgroupings within the residual partnership taxable years. Pursuant to with respect to Partnership’s 2019 taxable grouping. Under paragraph (b)(2) of this paragraph (e)(2) of this section, the year and determines that the amount of

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CFTEs was $300 instead of $400 (¥$100 account by the partnership in the adjustment separate subgrouping. However, adjustment to CFTEs). No other adjustments year in accordance with § 301.6225–3. The notwithstanding the general requirement that are made for the 2019 taxable year. The net decrease to CFTEs in the general- reallocation adjustments be subgrouped ¥$100 adjustment to CFTEs is placed in the category, A-allocation subgrouping, is treated separately, the reallocation adjustments creditable expenditure grouping described in as a positive adjustment to (decrease in) allocated to A and B may be subgrouped in paragraph (c)(4) of this section. Pursuant to credits in the credit grouping under accordance with paragraph (d)(3)(i) of this paragraph (e)(3)(iii) of this section, the paragraph (c)(3) of this section, resulting in section because there are two reallocation decrease to CFTEs in the creditable an imputed underpayment of $100 under adjustments allocated to each of A and B, expenditure grouping is treated as a positive paragraph (b)(1) of this section. respectively. Pursuant to paragraph (d)(3)(i) adjustment to (decrease in) credits in the (11) Example 11. Partnership has two of this section, because the partnership credit grouping under paragraph (c)(3) of this partners, A and B. Partnership owns two adjustment allocated to A would not have section. Because no other adjustments have entities, DE1 and DE2, that are disregarded as been netted at the partnership level and been made, the $100 decrease in credits separate from their owner for Federal income would not have been allocated to A as a produces an imputed underpayment of $100 tax purposes and are operating in and paying single partnership-related item for purposes under paragraph (b)(1) of this section. taxes to foreign jurisdictions. The partnership of section 702(a), other provisions of the (9) Example 9. Partnership reports on its agreement provides that all items from DE1 Code, regulations, forms, instructions, or 2019 partnership return $400 of CFTEs in the and DE2 are allocable to A and B in the other guidance prescribed by the IRS, the passive category under section 904(d). The following manner. Items related to DE1: To positive adjustment and the negative IRS initiates an administrative proceeding A 75 percent and to B 25 percent. Items adjustment allocated to A remain in separate with respect to Partnership’s 2019 taxable related to DE2: To A 25 percent and to B 75 subgroupings. For the same reasons with year and determines that the CFTEs reported percent. On Partnership’s 2018 return, respect to the adjustments allocated to B, the by Partnership were general category instead Partnership reports CFTEs in the general positive adjustment and the negative of passive category CFTEs. No other category of $300, $100 with respect to DE1 adjustment allocated to B also remain in adjustments are made. Under the rules in and $200 with respect to DE2. Partnership separate subgroupings. As a result, the paragraph (c)(6) of this section, an allocates the $300 of CFTEs $125 and $175 reallocation grouping would have four adjustment to the category of a CFTE is to A and B respectively. During an subgroupings, one for each adjustment: The treated as two separate adjustments: An administrative proceeding with respect to decrease in ordinary income allocated to B increase to general category CFTEs of $400 Partnership’s 2018 taxable year, the IRS (¥$30 adjustment), the increase in ordinary and a decrease to passive category CFTEs of determines that Partnership understated the income allocated to A ($30 adjustment), the $400. Both adjustments are included in the amount of creditable foreign tax paid by DE2 decrease in long term capital loss allocated creditable expenditure grouping under by $40 and overstated the amount of to B ($70 adjustment), and the increase long paragraph (c)(4) of this section, but they are creditable foreign tax paid by DE1 by $80. No term capital loss allocated to A (¥$70 included in separate subgroupings. other adjustments are made. Because the two adjustment). Pursuant to paragraph (e) of this Therefore, the two amounts do not net. adjustments each relate to CFTEs that are section, no netting may occur between Instead, the $400 increase to CFTEs in the subject to different allocations, the two subgroupings. Accordingly, the ordinary general category subgrouping is treated as a adjustments are in different subgroupings income allocated to A ($30 adjustment) and net negative adjustment under paragraph under paragraph (d)(3)(iii)(B) of this section. the long term capital loss allocated to B ($70 (e)(3)(iii)(A) of this section and is an The adjustment reducing the CFTEs related adjustment) are both net positive adjustment that does not result in an imputed to DE1 results in a decrease in CFTEs within adjustments. These net positive adjustments underpayment under paragraph (f) of this that subgrouping and under paragraph are added together to determine the total section. The decrease to CFTEs in the passive (e)(3)(iii)(A) of this section is treated as a netted partnership adjustment of $100. The category subgrouping of the creditable decrease in credits in the credit grouping total netted partnership adjustment is expenditure grouping results in a decrease in under paragraph (c)(3) of this section and multiplied by 40 percent, which results in an CFTEs. Therefore, pursuant to paragraph results in an imputed underpayment of $80 imputed underpayment of $40. The ordinary (e)(3)(iii)(A) of this section, it is treated as a under paragraph (b)(1) of this section. The income allocated to B (¥$30 adjustment) and positive adjustment to (decrease in) credits in increase of $40 of general category CFTE the long term capital loss allocated to A the credit grouping under paragraph (c)(3) of related to the DE2 subgrouping results in an (¥$70 adjustment) are net negative this section, which results in an imputed increase in CFTEs within that subgrouping adjustments treated as adjustments that do underpayment of $400 under paragraph (b)(1) and is treated as a net negative adjustment, not result in an imputed underpayment taken of this section. which does not result in an imputed into account by the partnership pursuant to (10) Example 10. Partnership has two underpayment and is taken into account in § 301.6225–3. partners, A and B. Under the partnership the adjustment year in accordance with agreement, $100 of the CFTE is specially § 301.6225–3. (i) Applicability date—(1) In general. allocated to A for the 2019 taxable year. The (12) Example 12. Partnership has two Except as provided in paragraph (i)(2) of IRS initiates an administrative proceeding partners, A and B. For the 2019 taxable year, this section, this section applies to with respect to Partnership’s 2019 taxable Partnership allocated $70 of long term capital partnership taxable years beginning year and determines that $100 of CFTE loss to B as well as $30 of ordinary income. after December 31, 2017, and ending should be reallocated from A to B. Because In an administrative proceeding with respect after August 12, 2018. the adjustment reallocates a creditable to Partnership’s 2019 taxable year, the IRS (2) Election under § 301.9100–22 in expenditure, paragraph (c)(4) of this section determines that the $30 of ordinary income provides that it is included in the creditable and the $70 of long term capital loss should effect. This section applies to any expenditure grouping rather than the be reallocated from B to A. The partnership partnership taxable year beginning after reallocation grouping. The partnership adjustments are a decrease of $30 of ordinary November 2, 2015 and before January 1, adjustment is a ¥$100 adjustment to general income (¥$30 adjustment) allocated to B and 2018, for which a valid election under category CFTE allocable to A and an increase a corresponding increase of $30 of ordinary § 301.9100–22T is in effect. of $100 to general category CFTE allocable to income ($30 adjustment) allocated to A, as ■ Par. 5. Section 301.6225–2 is added to B. Pursuant to paragraph (d)(3)(iii) of this well as a decrease of $70 of long term capital read as follows: section, the ¥$100 adjustment to general loss ($70 adjustment) allocated to B and a category CFTE and the increase of $100 to corresponding increase of $70 of long term § 301.6225–2 Modification of imputed general category CFTE are included in capital loss (¥$70 adjustment) allocated to underpayment. separate subgroupings in the creditable A. See paragraph (c)(2)(ii) of this section. expenditure grouping. The $100 increase in Pursuant to paragraph (d)(3)(ii)(A) of this (a) Partnership may request general category CFTEs, B-allocation section, for purposes of determining the modification of an imputed subgrouping, is a net negative adjustment, imputed underpayment, each positive underpayment. A partnership that has which does not result in an imputed adjustment and each negative adjustment received a notice of proposed underpayment and is therefore taken into allocated to A and B is placed in its own partnership adjustment (NOPPA) under

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section 6231(a)(2) from the Internal number and composition of imputed (A) Paragraph (d)(4) of this section Revenue Service (IRS) may request underpayments, including the (rate modification); modification of a proposed imputed placement of adjustments in groupings (B) Paragraph (d)(8) of this section underpayment set forth in the NOPPA and subgroupings (if applicable) (as (closing agreements), if applicable; in accordance with this section and any described in paragraph (b)(4) of this (C) Paragraph (d)(9) of this section forms, instructions, and other guidance section), as well as to the extent of other (tax treaty modifications), if applicable; prescribed by the IRS. The effect of modifications allowed under rules and modification on a proposed imputed provided in forms, instructions, or other (D) Paragraph (d)(10) of this section underpayment is described in paragraph guidance prescribed by the IRS (as (other modifications), if applicable. (b) of this section. Unless otherwise described in paragraph (b)(5) of this (ii) Determination of the imputed described in paragraph (d) of this section). If a partnership requests more underpayment in the case of rate section, a partnership may request any than one modification under this modification. Except as described in type of modification of an imputed section, modifications are taken into paragraph (b)(3)(iv) of this section, in underpayment described in paragraph account in the following order: the case of an approved modification (d) of this section in the time and (i) Modifications that affect the extent described under paragraph (b)(3)(i) of this section, the imputed underpayment manner described in paragraph (c) of to which an adjustment factors into the is the sum of the total netted this section. A partnership may request determination of the imputed partnership adjustment consisting of the modification with respect to a underpayment under paragraph (b)(2) of net positive adjustments not subject to partnership adjustment (as defined in this section; rate reduction under paragraph (b)(3)(i) § 301.6241–1(a)(6)) that does not result (ii) Modification of the number and of this section (taking into account any in an imputed underpayment (as composition of imputed underpayments approved modifications under described in § 301.6225–1(f)(1)(ii)) as under paragraph (b)(4) of this section; described in paragraph (e) of this paragraph (b)(2) of the section), plus the and rate-modified netted partnership section. Only the partnership (iii) Modifications that affect the tax representative may request modification adjustment determined under paragraph rate under paragraph (b)(3) of this (b)(3)(iii) of this section, reduced or under this section. See section 6223 and section. § 301.6223–2 for rules regarding the increased by any adjustments to credits (2) Modifications that affect (taking into account any modifications binding authority of the partnership partnership adjustments for purposes of representative. For purposes of this under paragraph (b)(4) of this section). determining the imputed The total netted partnership adjustment section, the term relevant partner means underpayment. If the IRS approves any person for whom modification is not subject to rate reduction under modification with respect to a paragraph (b)(3)(i) of this section (taking requested by the partnership that is— partnership adjustment, such (1) A reviewed year partner (as into account any approved partnership adjustment is excluded defined in § 301.6241–1(a)(9)), modifications under paragraph (b)(2) of from the determination of the imputed including any pass-through partner (as the section) is determined by underpayment as determined under defined in § 301.6241–1(a)(5)), except multiplying the partnership adjustments § 301.6225–1(b). This paragraph (b)(2) for any reviewed year partner that is a included in the total netted partnership applies to modifications under— wholly-owned entity disregarded as adjustment that are not subject to rate (i) Paragraph (d)(2) of this section separate from its owner for Federal modification under paragraph (b)(3)(i) of income tax purposes; or (amended returns and the alternative this section (including any partnership (2) An indirect partner (as defined in procedure to filing amended returns); adjustment that remains after applying § 301.6241–1(a)(4)) except for any (ii) Paragraph (d)(3) of this section paragraph (b)(3)(iii) of this section) by indirect partner that is a wholly-owned (tax-exempt status); the highest tax rate (as described in entity disregarded as separate from its (iii) Paragraph (d)(5) of this section § 301.6225–1(b)(1)(iv)). owner for Federal income tax purposes. (specified passive activity losses); (iii) Calculation of rate-modified (b) Effect of modification–(1) In (iv) Paragraph (d)(7) of this section netted partnership adjustment in the general. A modification of an imputed (qualified investment entities); case of a rate modification. The rate- underpayment under this section that is (v) Paragraph (d)(8) of this section modified netted partnership adjustment approved by the IRS may result in an (closing agreements), if applicable; is determined as follows— increase or decrease in the amount of an (vi) Paragraph (d)(9) of this section (A) Determine each relevant partner’s imputed underpayment set forth in the (tax treaty modifications), if applicable; distributive share of the partnership NOPPA. A modification under this and adjustments subject to an approved section has no effect on the amount of (vii) Paragraph (d)(10) of this section modification under paragraph (b)(3)(i) of any partnership adjustment determined (other modifications), if applicable. this section based on how each under subchapter C of chapter 63 of the (3) Modifications that affect the tax adjustment subject to rate modification Internal Revenue Code (subchapter C of rate—(i) In general. If the IRS approves was allocated in the NOPPA, or if the chapter 63). See paragraph (e) of this a modification with respect to the tax appropriate allocation was not section for the effect of modification on rate applied to a partnership addressed in the NOPPA, how the adjustments that do not result in an adjustment, such modification results in adjustment would be properly allocated imputed underpayment. A modification a reduction in tax rate applied to the under subchapter K of chapter 1 of the may increase or decrease an imputed total netted partnership adjustment with Internal Revenue Code (subchapter K) to underpayment by affecting the extent to respect to the partnership adjustments such relevant partner in the reviewed which adjustments factor into the in accordance with this paragraph (b)(3). year (as defined in § 301.6241–1(a)(8)). determination of the imputed A modification of the tax rate does not (B) Multiply each partnership underpayment (as described in affect how the partnership adjustment adjustment determined under paragraph paragraph (b)(2) of this section), the tax factors into the calculation of the total (b)(3)(iii)(A) of this section by the tax rate that is applied in calculating the netted partnership adjustment. This rate applicable to such adjustment based imputed underpayment (as described in paragraph (b)(3) applies to on the approved modification described paragraph (b)(3) of this section), and the modifications under— under paragraph (b)(3)(i) of this section.

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(C) Add all of the amounts calculated subject to any other modifications substantiate a particular type of under paragraph (b)(3)(iii)(B) of this approved by the IRS under this section. modification, the manner for submitting section with respect to each partnership (5) Other modifications. The effect of documents and other information to the adjustment subject to an approved other modifications described in IRS, and recordkeeping requirements. modification described under paragraph paragraph (d)(10) of this section, Pursuant to section 6241(10), the IRS (b)(3)(i) of this section. including the order that such may require the partnership to file or (iv) Rate modification in the case of modification will be taken into account submit anything required to be filed or special allocations. If an imputed for purposes of paragraph (b)(1) of this submitted under this section to be filed underpayment results from adjustments section, may be set forth in forms, or submitted electronically. The IRS to more than one partnership-related instructions, or other guidance will deny a request for modification if item and any relevant partner for whom prescribed by the IRS. a partnership fails to provide modification described under paragraph (c) Time, form, and manner for information the IRS determines is (b)(3)(i) of this section is approved has requesting modification—(1) In general. necessary to substantiate a request for a distributive share of such items that is In addition to the requirements modification, or if the IRS determines not the same with respect to all such described in paragraph (d) of this there is a failure by any person to make items, the imputed underpayment as section, a request for modification under any required payment, within the time modified based on the modification this section must be submitted in restrictions described in paragraph (c) of types described under paragraph accordance with, and include the this section. (b)(3)(i) of this section is determined as information required by, the forms, (ii) Information to be furnished for described in paragraphs (b)(3)(ii) and instructions, and other guidance any modification request. In the case of (iii) of this section except that each prescribed by the IRS. The partnership any modification request, the relevant partner’s distributive share is representative must submit any request partnership representative must furnish for modification and all relevant determined based on the amount of net to the IRS such information as is information (including information gain or loss to the partner that would required by forms, instructions, and required under paragraphs (c)(2) and (d) have resulted if the partnership had sold other guidance prescribed by the IRS or of this section) to the IRS within the all of its assets at their fair market value that is otherwise requested by the IRS time described in paragraph (c)(3) of as of the close of the reviewed year related to the requested modification. this section. The IRS will notify the appropriately adjusted to reflect any Such information may include a partnership representative in writing of approved modification under detailed description of the partnership’s paragraphs (d)(2), (3), and (5) through the approval or denial, in whole or in structure, allocations, ownership, and (10) of this section with respect to any part, of any request for modification. A ownership changes, its relevant partners relevant partner. Notwithstanding the request for modification, including a for each taxable year relevant to the preceding sentence, the partnership may request by the IRS for information request for modification, as well as the request that the IRS apply the rule in related to a request for modification, partnership agreement as defined in paragraph (b)(3)(iii)(A) of this section and the determination by the IRS to § 1.704–1(b)(2)(ii)(h) of this chapter for when determining each relevant approve or not approve all or a portion each taxable year relevant to the partner’s distributive share for purposes of a request for modification, is part of modification request. In the case of any of this paragraph (b)(3)(iv). Upon the administrative proceeding with modification request with respect to a request by the IRS, the partnership may respect to the partnership under be required to provide the relevant subchapter C of chapter 63 and does not relevant partner that is an indirect partners’ capital account calculation constitute an examination, inspection, partner, the partnership representative through the end of the reviewed year, a or other administrative proceeding with must provide to the IRS any information calculation of asset liquidation gain or respect to any other person for purposes that the IRS may require relevant to any loss, and any other information of section 7605(b). pass-through partner or wholly-owned necessary to determine whether rate (2) Partnership must substantiate entity disregarded as separate from its modification is appropriate, consistent facts supporting a request for owner for Federal income tax purposes with the rules of paragraph (c)(2) of this modification—(i) In general. A through which the relevant partner section. Any calculation by the partnership requesting modification holds its interest in the partnership. For partnership that is necessary to comply under this section must substantiate the instance, if the partnership requests with the rules in this paragraph facts supporting such a request to the modification with respect to an (b)(3)(iv) is not considered a revaluation satisfaction of the IRS. The documents amended return filed by a relevant for purposes of section 704. and other information necessary to partner pursuant to paragraph (d)(2) of (4) Modification of the number and substantiate a particular request for this section, the partnership composition of imputed modification are based on the facts and representative may be required to underpayments. Once approved by the circumstances of each request, as well provide to the IRS information that IRS, a modification under paragraph as the type of modification requested would have been required to have been (d)(6) of this section affects the manner under paragraph (d) of this section, and filed by pass-through partners through in which adjustments are placed into may include tax returns, partnership which the relevant partner holds its groupings and subgroupings (as operating documents, certifications in interest in the partnership as if those described in § 301.6225–1(c) and (d)) or the form and manner required with pass-through partners had also filed whether the IRS designates one or more respect to the particular modification, their own amended returns. specific imputed underpayments (as and any other information necessary to (3) Time for submitting modification described in § 301.6225–1(g)). If the IRS support the requested modification. The request and information—(i) approves a request for modification IRS may, in forms, instructions, or other Modification request. Unless the IRS under this paragraph (b)(4), the imputed guidance, set forth procedures with grants an extension of time, all underpayment and any specific imputed respect to information and documents information required under this section underpayment affected by or resulting supporting the modification, including with respect to a request for from the modification is determined procedures to require particular modification must be submitted to the according to the rules of § 301.6225–1 documents or other information to IRS in the form and manner prescribed

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by the IRS on or before 270 days after amended returns as described in of taking into account the relevant the date the NOPPA is mailed. paragraph (d)(2)(x) of this section. The partner’s distributive share of all (ii) Extension of the 270-day period. partnership may not request an partnership adjustments in the first The IRS may, in its discretion, grant a additional modification of any imputed affected year. A modification year may request for extension of the 270-day underpayment for a partnership taxable be a taxable year before or after the first period described in paragraph (c)(3)(i) of year under this section with respect to affected year, depending on the effect on this section provided the partnership any relevant partner that files an the relevant partner’s tax attributes of submits such request to the IRS, in the amended return (or utilizes the taking into account the relevant form and manner prescribed by forms, alternative procedure to filing amended partner’s distributive share of the instructions, or other guidance returns) under paragraph (d)(2) of this partnership adjustments in the first prescribed by the IRS before expiration section or with respect to any affected year. of such period, as extended by any prior partnership adjustment allocated to (C) Amended returns for partnership extension granted under this paragraph such relevant partner. adjustments that reallocate distributive (c)(3)(ii). (ii) Requirements for approval of a shares. Except as described in this (iii) Expiration of the 270-day period modification request based on amended paragraph (d)(2)(ii)(C), in the case of by agreement. The 270-day period return. Except as otherwise provided partnership adjustments that reallocate described in paragraph (c)(3)(i) of this under the alternative procedure the distributive shares of any section (including any extensions under described in paragraph (d)(2)(x) of this partnership-related item from one paragraph (c)(3)(ii) of this section) section, an amended return partner to another, a modification under expires as of the date the partnership modification request under paragraph paragraph (d)(2) of this section will be and the IRS agree, in the form and (d)(2) of this section will not be approved only if all partners affected by manner prescribed by form, approved unless the provisions of this such adjustments file amended returns instructions, or other guidance paragraph (d)(2)(ii) are satisfied. The in accordance with paragraph (d)(2) of prescribed by the IRS to waive the 270- partnership may satisfy the this section. The IRS may determine day period after the mailing of the requirements of paragraph (d)(2) of this that the requirements of this paragraph NOPPA and before the IRS may issue a section by demonstrating in accordance (d)(2)(ii)(C) are satisfied even if not all notice of final partnership adjustment. with forms, instructions, and other relevant partners affected by such See section 6231(b)(2)(A); § 301.6231– guidance provided by the IRS that a adjustments file amended returns 1(b)(2). relevant partner has previously taken provided any relevant partners affected (4) Approval of modification by the into account the partnership by the reallocation not filing amended IRS. Notification of approval will be adjustments described in paragraph returns take into account their provided to the partnership only after (d)(2)(i) of this section, made any distributive share of the adjustments receipt of all relevant information required adjustments to tax attributes through other modifications approved (including any supplemental resulting from the partnership by the IRS (including the alternative information required by the IRS) and all adjustments for the years described in procedure to filing amended returns necessary payments with respect to the paragraph (d)(2)(ii)(B) of this section, under paragraph (d)(2)(x) of this section) particular modification requested before and made all required payments under or if a pass-through partner takes into expiration of the 270-day period in paragraph (d)(2)(ii)(A) of this section. account the relevant adjustments in paragraph (c)(3)(i) of this section plus (A) Full payment required. An accordance with paragraph (d)(2)(vi) of any extension granted by the IRS under amended return modification request this section. For instance, in the case of paragraph (c)(3)(ii) of this section. under paragraph (d)(2) of this section adjustments that reallocate a loss from (d) Types of modification—(1) In will not be approved unless the relevant one partner to another, the IRS may general. Except as otherwise described partner filing the amended return has determine that the requirements of this in this section, a partnership may paid all tax, penalties, additions to tax, paragraph (d)(2)(ii)(C) have been request one type of modification or additional amounts, and interest due as satisfied if one affected relevant partner more than one type of modification a result of taking into account all files an amended return taking into described in paragraph (d) of this partnership adjustments in the first account the adjustments and the other section. affected year (as defined in § 301.6226– affected relevant partner signs a closing (2) Amended returns by partners—(i) 3(b)(2)) and all modification years (as agreement with the IRS taking into In general. A partnership may request a described in paragraph (d)(2)(ii)(B) of account the adjustments. Similarly, in modification of an imputed this section) at the time such return is the case of adjustment that reallocate underpayment based on an amended filed with the IRS. Except for a pass- income from one partner to another, the return filed by a relevant partner through partner calculating its payment IRS may determine that the provided all of the partnership amount pursuant to paragraph (d)(2)(vi) requirements of this paragraph adjustments properly allocable to such of this section, for purposes of this (d)(2)(ii)(C) have been satisfied to the relevant partner are taken into account paragraph (d)(2)(ii)(A), the term tax extent an affected relevant partner meets and any amount due is paid in means tax imposed by chapter 1 of the the requirements of paragraph (d)(3) of accordance with paragraph (d)(2) of this Internal Revenue Code (chapter 1). this section (regarding tax-exempt section. Only adjustments to (B) Amended returns for all relevant partners) and through such modification partnership-related items or adjustments taxable years must be filed. fully takes into account all adjustments to a relevant partner’s tax attributes Modification under paragraph (d)(2) of reallocated to the affected relevant affected by adjustments to partnership- this section will not be approved by the partner. related items may be taken into account IRS unless a relevant partner files an (iii) Form and manner for filing on an amended return under paragraph amended return for the first affected amended returns. A relevant partner (d)(2) of this section. A partnership may year and any modification year. A must file all amended returns required request a modification for purposes of modification year is any taxable year for modification under paragraph (d)(2) paragraph (d)(2) of this section by with respect to which any tax attribute of this section with the IRS in submitting a modification request based (as defined in § 301.6241–1(a)(10)) of accordance with forms, instructions, on the alternative procedure to filing the relevant partner is affected by reason and other guidance prescribed by the

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IRS. Except as otherwise provided and other guidance provided by the IRS paragraph (d)(2) of this section. Such under the alternative procedure and solely for purposes of modification determinations include a court decision described in paragraph (d)(2)(x) of this under paragraph (d)(2) of this section, that changes the partnership section, the IRS will not approve take into account its share of the adjustments for which modification was modification under paragraph (d)(2) of partnership adjustments and determine requested or a settlement between the this section unless prior to the and pay an amount calculated in the IRS and the partnership pursuant to expiration of the 270-day period same manner as the amount computed which the partnership is not liable for described in paragraph (c)(3) of this under § 301.6226–3(e)(4)(iii) subject to all or a portion of the imputed section, the partnership representative paragraph (d)(2)(vi)(B) of this section. underpayment for which modification provides to the IRS, in the form and (B) Modifications with respect to was requested. Any amended return or manner prescribed by the IRS, an upper-tier partners of the pass-through claim for refund filed under this affidavit from each relevant partner partner. In accordance with forms, paragraph (d)(2)(vii) is subject to the signed under penalties of perjury by instructions, and other guidance period of limitations under section such partner stating that all of the provided by the IRS, for purposes of 6511. amended returns required to be filed determining and calculating the amount (viii) Penalties. The applicability of under paragraph (d)(2) of this section a pass-through partner must pay under any penalties, additions to tax, or has been filed (including the date on paragraph (d)(2)(vi)(A) of this section, additional amounts that relate to an which such amended returns were filed) the pass-through partner may take into adjustment to a partnership-related item and that the full amount of tax, account modifications with respect to is determined at the partnership level in penalties, additions to tax, additional its direct and indirect partners to the accordance with section 6221(a). amounts, and interest was paid extent that such modifications are However, the amount of penalties, (including the date on which such requested by the partnership requesting additions to tax, and additional amounts amounts were paid). modification and approved by the IRS a relevant partner must pay under (iv) Period of limitations. Generally, under this section. paragraph (d)(2)(ii)(A) of this section for the period of limitations under sections (vii) Limitations on amended the first affected year and for any 6501 and 6511 do not apply to an returns—(A) In general. A relevant modification year is based on the amended return filed under paragraph partner may not file an amended return underpayment or understatement of tax, (d)(2) of this section provided the or claim for refund that takes into if any, reflected on the amended return amended return otherwise meets the account partnership adjustments except filed by the relevant partner under requirements of paragraph (d)(2) of this as described in paragraph (d)(2) of this paragraph (d)(2) of this section. For section. section. instance, if after taking into account the (v) Amended returns in the case of (B) Further amended returns adjustments, the return of the relevant adjustments allocated through certain restricted. Except as described in partner for the first affected year or any pass-through partners. A request for paragraph (d)(2)(vii)(C) of this section, if modification year reflects an modification related to an amended a relevant partner files an amended underpayment or an understatement return of a relevant partner that is an return under paragraph (d)(2) of this that falls below the applicable threshold indirect partner holding its interest in section, or satisfies paragraph (d)(2) of for the imposition of a penalty under the partnership (directly or indirectly) this section by following the alternative section 6662(d), no penalty would be through a pass-through partner that procedure under paragraph (d)(2)(x) of due from that relevant partner for such could be subject to tax imposed by this section (the alternative procedure), year. Unless forms, instructions or other chapter 1 (chapter 1 tax) on the such partner may not file a subsequent guidance provided by the IRS allow for partnership adjustments that are amended return or claim for refund to an alternative procedure for raising a properly allocated to such pass-through change the treatment of partnership partner-level defense (as described in partner will not be approved unless the adjustments taken into account through § 301.6226–3(d)(3)), a relevant partner partnership— amended return or the alternative may raise a partner-level defense by first (A) Establishes that the pass-through procedure. paying the penalty, addition to tax, or partner is not subject to chapter 1 tax on (C) Subsequent returns in the case of additional amount with the amended the adjustments that are properly changes to partnership adjustments or return filed under paragraph (d)(2) of allocated to such pass-through partner; denial of modification. Notwithstanding this section and then filing a claim for or paragraph (d)(2)(vii)(B) of this section, a refund in accordance with forms, (B) Requests modification with relevant partner that has previously instructions, and other guidance. respect to the adjustments resulting in filed an amended return under (ix) Effect on tax attributes binding. chapter 1 tax for the pass-through paragraph (d)(2) of this section, or Any adjustments to the tax attributes of partner, including full payment of such satisfied the requirements of paragraph any relevant partner which are affected chapter 1 tax for the first affected year (d)(2) of this section through the by modification under paragraph (d)(2) and all modification years under alternative procedure, to take of this section are binding on the paragraph (d)(2) of this section or in partnership adjustments into account relevant partner with respect to the first accordance with forms, instructions, or may, in accordance with forms, affected year and all modification years other guidance prescribed by the IRS. instructions, and other guidance (as defined in paragraph (d)(2)(ii)(B) of (vi) Amended returns in the case of prescribed by the IRS, file a subsequent this section). A failure to adjust any tax pass-through partners—(A) Pass- return or claim for refund if a attribute in accordance with this through partners may file amended determination is made by a court or by paragraph (d)(2)(ix) is a failure to treat returns. A relevant partner that is a the IRS that results in a change to the a partnership-related item in a manner pass-through partner, including a partnership adjustments taken into which is consistent with the treatment partnership-partner (as defined in account in modification under of such item on the partnership return § 301.6241–1(a)(7)) that has a valid paragraph (d)(2) of this section or a within the meaning of section 6222. The election under section 6221(b) in effect denial of modification by the IRS under provisions of section 6222(c) and for a partnership taxable year, may, in paragraph (c)(2)(i) of this section with § 301.6222–1(c) (regarding notification accordance with forms, instructions, respect to a modification request under of inconsistent treatment) do not apply

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with respect to tax attributes under this exempt partner with respect to which (1) The specified partner’s taxable paragraph (d)(2)(ix). the partner would not be subject to tax year in which or with which the (x) Alternative procedure to filing for the reviewed year (tax-exempt adjustment year (as defined in amended returns—(A) In general. A portion) may form the basis of a § 301.6241–1(a)(1)) of the partnership partnership may satisfy the modification of the imputed ends, reduced to the extent any such requirements of paragraph (d)(2) of this underpayment under paragraph (d)(3) of partner has utilized any portion of its section by submitting on behalf of a this section. A modification under affected year loss to offset income or relevant partner, in accordance with paragraph (d)(3) of this section will not gain relating to the ownership or forms, instructions, and other guidance be approved by the IRS unless the disposition of its interest in such provided by the IRS, all information and partnership provides documentation in publicly traded partnership during payment of any tax, penalties, additions accordance with paragraph (c)(2) of this either the adjustment year or any other to tax, additional amounts, and interest section to support the tax-exempt year; or that would be required to be provided partner’s status and the tax-exempt (2) If the adjustment year has not yet if the relevant partner were filing an portion of the partnership adjustment been determined, the most recent year amended return under paragraph (d)(2) allocable to the tax-exempt partner. for which the publicly traded of this section, except as otherwise (4) Modification based on a rate of tax partnership has filed a return under provided in relevant forms, instructions, lower than the highest applicable tax section 6031, reduced to the extent any and other guidance provided by the IRS. rate. A partnership may request such partner has utilized any portion of A relevant partner for which the modification based on a lower rate of its affected year loss to offset income or partnership seeks modification under tax for the reviewed year with respect to gain relating to the ownership or paragraph (d)(2)(x) of this section must adjustments that are attributable to a disposition of its interest in such agree to take into account, in accordance relevant partner that is a C corporation publicly traded partnership during any with forms, instructions, and other and adjustments with respect to capital year. guidance provided by the IRS, gains or qualified dividends that are (iii) Specified partner. A specified adjustments to any tax attributes of such attributable to a relevant partner who is partner is a person that for each taxable relevant partner. A modification request an individual. In no event may the year beginning with the first affected submitted in accordance with the lower rate determined under the year through the person’s taxable year in alternative procedure under paragraph preceding sentence be less than the which or with which the partnership (d)(2)(x) of this section is not a claim for highest rate in effect for the reviewed adjustment year ends satisfies the refund with respect to any person. year with respect to the type of income following three requirements– (B) Modifications with respect to and taxpayer. For instance, with respect (A) The person is a partner of the reallocation adjustments. A submission to adjustments that are attributable to a publicly traded partnership requesting made in accordance with paragraph C corporation, the highest rate in effect modification under this section; (d)(2)(x) of this section with respect to for the reviewed year with respect to all (B) The person is an individual, any relevant partner is treated as if such C corporations would apply to that estate, trust, closely held C corporation, relevant partner filed an amended adjustment, regardless of the rate that or personal service corporation; and return for purposes of paragraph would apply to the C corporation based (C) The person has a specified passive (d)(2)(ii)(C) of this section (regarding the on the amount of that C corporation’s activity loss with respect to the publicly requirement that all relevant partners taxable income. For purposes of this traded partnership. affected by a reallocation must file an paragraph (d)(4), an S corporation is (iv) Qualified relevant partner. A amended return to be eligible to for the treated as an individual. qualified relevant partner is a relevant modification under paragraph (d)(2) of (5) Certain passive losses of publicly partner that meets the three this section) provided the submission is traded partnerships—(i) In general. In requirements to be a specified partner with respect to the first affected year the case of a publicly traded partnership (as described in paragraphs and all modification years of such (as defined in section 469(k)(2)) (d)(5)(iii)(A), (B), and (C) of this section) relevant partner as required under requesting modification under this for each year beginning with the first paragraph (d)(2) of this section. section, an imputed underpayment is affected year through the year described (3) Tax-exempt partners—(i) In determined without regard to any in paragraph (d)(5)(ii)(B)(2) of this general. A partnership may request adjustment that the partnership section. Notwithstanding the preceding modification of an imputed demonstrates would be reduced by a sentence, an indirect partner of the underpayment with respect to specified passive activity loss (as publicly traded partnership requesting partnership adjustments that the defined in paragraph (d)(5)(ii) of this modification under this section may partnership demonstrates to the section) which is allocable to a specified also be a qualified relevant partner satisfaction of the IRS are allocable to a partner (as defined in paragraph under this paragraph (d)(5)(iv) if that relevant partner that would not owe tax (d)(5)(iii) of this section) or qualified indirect partner meets the requirements by reason of its status as a tax-exempt relevant partner (as defined in of paragraph (d)(5)(iii)(B) and (C) of this entity (as defined in paragraph (d)(3)(ii) paragraph (d)(5)(iv) of this section). section for each year beginning with the of this section) in the reviewed year (ii) Specified passive activity loss. A first affected year through the year (tax-exempt partner). specified passive activity loss carryover described in paragraph (d)(5)(ii)(B)(2) of (ii) Definition of tax-exempt entity. amount for any specified partner or this section. For purposes of paragraph (d)(3) of this qualified relevant partner of a publicly (v) Partner notification requirement to section, the term tax-exempt entity traded partnership is the lesser of the reduce passive losses. If the IRS means a person or entity defined in section 469(k) passive activity loss of approves a modification request under section 168(h)(2)(A), (C), or (D). that partner which is separately paragraph (d)(5) of this section, the (iii) Modification limited to portion of determined with respect to such partnership must report, in accordance partnership adjustments for which tax- partnership— with forms, instructions, or other exempt partner not subject to tax. Only (A) At the end of the first affected year guidance prescribed by the IRS, to each the portion of the partnership (affected year loss); or specified partner the amount of that adjustments properly allocated to a tax- (B) At the end of— specified partner’s reduction of its

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suspended passive activity loss (7) Partnerships with partners that are under § 301.6225–1. Any required carryovers at the end of the adjustment ‘‘qualified investment entities’’ payment under the closing agreement year to take into account the amount of described in section 860—(i) In general. may include amounts of tax, including any passive activity losses applied in A partnership may request a tax under chapters other than chapter 1, connection with such modification modification of an imputed interest, penalties, additions to tax and request. In the case of a qualified underpayment based on the partnership additional amounts. Generally, the IRS relevant partner, the partnership must adjustments allocated to a relevant will not approve any additional report, in accordance with forms, partner where the modification is based modification under this section with instructions, or other guidance on deficiency dividends distributed as respect to a relevant partner to which a prescribed by the IRS, to each qualified described in section 860(f) by a relevant modification under this paragraph (d)(8) relevant partner the amount of that partner that is a qualified investment has been approved. qualified relevant partner’s reduction of entity (QIE) under section 860(b) (which (9) Tax treaty modifications. A its suspended passive activity loss includes both a regulated investment partnership may request a modification carryovers at the end of the taxable year company (RIC) and a real estate under this paragraph (d)(9) with respect for which the partnership’s next return investment trust (REIT)). Modification to a relevant partner’s distributive share is due to be filed under section 6031 to under paragraph (d)(7) of this section is of an adjustment to a partnership- be taken into account by the qualified available only to the extent that the related item if, in the reviewed year, the relevant partner on the partner’s return deficiency dividends take into account relevant partner was a foreign person for the year that includes the end of the adjustments described in § 301.6225–1 who qualified under an income tax partnership’s taxable year for which the that are also adjustments within the treaty with the United States for a partnership’s next return is due to be meaning of section 860(d)(1) or (d)(2) reduction or exemption from tax with filed under section 6031. In the case of (whichever applies). respect to such partnership-related item. an indirect partner that is a qualified (ii) Documentation of deficiency A partnership requesting modification relevant partner, the IRS may prescribe dividend. The partnership must provide under this section may also request a additional guidance through forms, documentation in accordance with treaty modification under this paragraph instructions, or other guidance to paragraph (c) of this section of the (d)(9) regardless of the treaty status of its require reporting under this paragraph ‘‘determination’’ described in section partners if, in the reviewed year, the (d)(5)(v). The reduction in suspended 860(e). Under section 860(e)(2), § 1.860– partnership itself was an entity eligible passive activity loss carryovers as 2(b)(1)(i) of this chapter, and paragraph for such treaty benefits. reported to a specified partner or (d)(8) of this section, a closing (10) Other modifications. A qualified relevant partner under this agreement entered into by the QIE partnership may request a modification paragraph (d)(5)(v) is a determination of partner pursuant to section 7121 and not otherwise described in paragraph (d) the partnership under subchapter C of paragraph (d)(8) of this section is a of this section, and the IRS will chapter 63 and is binding on the determination described in section determine whether such modification is specified partners and qualified relevant 860(e), and the date of the accurate and appropriate in accordance partners under section 6223. determination is the date in which the with paragraph (c)(4) of this section. (6) Modification of the number and closing agreement is approved by the Additional types of modifications and composition of imputed IRS. In addition, under section the documentation necessary to underpayments—(i) In general. A 860(e)(4), a determination also includes substantiate such modifications may be partnership may request modification of a Form 8927, Determination Under set forth in forms, instructions, or other the number or composition of any Section 860(e)(4) by a Qualified guidance prescribed by the IRS. imputed underpayment included in the Investment Entity, properly completed (e) Modification of adjustments that NOPPA by requesting that the IRS and filed by the RIC or REIT pursuant do not result in an imputed include one or more partnership to section 860(e)(4). To establish the underpayment. A partnership may adjustments in a particular grouping or date of the determination under section request modification of adjustments that subgrouping (as described in 860(e)(4) and the amount of deficiency do not result in an imputed § 301.6225–1(c) and (d)) or specific dividends actually paid, the partnership underpayment (as described in imputed underpayments (as described must provide a copy of Form 976, Claim § 301.6225–1(f)(1)(ii)) using in § 301.6225–1(g)) different from the for Deficiency Dividends Deductions by modifications described in paragraph grouping, subgrouping, or imputed a Personal Holding Company, Regulated (d)(2) of this section (amended returns underpayment set forth in the NOPPA. Investment Company, or Real Estate and the alternative procedure to filing For example, a partnership may request Investment Trust, properly completed amended returns), paragraph (d)(6) of under paragraph (d)(6) of this section by or on behalf of the QIE pursuant to this section (number and composition of that one or more partnership section 860(g), together with a copy of the imputed underpayment), paragraph adjustments taken into account to each of the required attachments for (d)(8) of this section (closing determine a general imputed Form 976. agreements), or, if applicable, paragraph underpayment set forth in the NOPPA (8) Closing agreements. A partnership (d)(10) of this section (other be taken into account to determine a may request modification based on a modifications). specific imputed underpayment. closing agreement entered into by the (f) Examples. The following examples (ii) Request for particular treatment IRS and the partnership or any relevant illustrate the rules of this section. For regarding limitations or restrictions. A partner, or both if appropriate, pursuant purposes of these examples, each modification request under paragraph to section 7121. If modification under partnership is subject to the provisions (d)(6) of this section includes a request this paragraph (d)(8) is approved by the of subchapter C of chapter 63, each that one or more partnership IRS, any partnership adjustment that is partnership and its relevant partners are adjustments be treated as if no taken into account under such closing calendar year taxpayers, all relevant limitations or restrictions under agreement and for which any required partners are U.S. persons (unless § 301.6225–1(d) apply and as a result payment under the closing agreement is otherwise stated), the highest rate of such adjustments may be subgrouped made will not be taken into account in income tax in effect for all taxpayers is with other adjustments. determining the imputed underpayment 40 percent for all relevant periods, and

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no partnership requests modification NOPPA to Partnership for its 2019 taxable and § 301.6226–3(e)(4)(iii) that, pursuant to under this section except as provided in year proposing a single partnership paragraph (d)(2)(vi)(B) of this section, takes the example. adjustment increasing Partnership’s ordinary into account the modification under income by $100, resulting in a $40 imputed paragraph (d)(3) of this section approved by (1) Example 1. Partnership has two underpayment ($100 total netted partnership the IRS with respect to B’s partner C, a tax- partners during its 2019 partnership taxable adjustment multiplied by 40 percent). exempt entity. B makes a payment pursuant year: P and S. P is a partnership, and S is an Partnership timely requests modification to paragraph (d)(2)(ii)(A) of this section, and S corporation. P has four partners during its under paragraph (d)(3) of this section with the IRS approves the requested modification. 2019 partnership taxable year: A, C, T and respect to B’s partner, C, a tax-exempt entity. Partnership’s total netted partnership DE. A is an individual, C is a C corporation, In accordance with paragraph (d)(3)(iii) of adjustment is reduced by $50 (the amount T is a trust, and DE is a wholly-owned entity this section, Partnership’s partnership taken into account by B). Partnership’s total disregarded as separate from its owner for representative provides the IRS with netted partnership adjustment (determined in Federal income tax purposes. The owner of documentation substantiating to the IRS’s accordance with § 301.6225–1) is $50, and DE is B, an individual. T has two satisfaction that C held a 25 percent indirect the imputed underpayment, after beneficiaries during its 2019 taxable year: F interest in Partnership through its interest in modification, is $20. and G, both individuals. S has 3 shareholders B during the 2019 taxable year, that C was (6) Example 6. The facts are the same as during its 2019 taxable year: H, J, and K, all a tax-exempt entity defined in paragraph in Example 3 in paragraph (f)(3) of this individuals. For purposes of this section, if (d)(3)(ii) of this section during the 2019 section, except that in addition to the Partnership requests modification with taxable year, and that C was not subject to modification with respect to tax-exempt respect to A, B, C, F, G, H, J, and K, those tax with respect to its entire allocable share entity C, which reduced the imputed persons are all relevant partners (as defined of the partnership adjustment allocated to B underpayment by excluding from the in paragraph (a) of this section). P, S, and DE (which is $25 (50 percent × 50 percent × determination of the imputed underpayment are not relevant partners (as defined in $100)). The IRS approves the modification $25 of the $100 partnership adjustment paragraph (a) of this section) because DE is and, in accordance with paragraph (b)(2) of reflected in the NOPPA, Partnership timely a wholly-owned entity disregarded as this section, the $25 increase in ordinary requests modification under paragraph (d)(2) separate from its owner for Federal income income allocated to C, through B, is not of this section with respect to an amended tax purposes and modification was not included in the calculation of the total netted return filed by individual D, and, in requested with respect to P and S. partnership adjustment (determined in accordance with paragraph (d)(2)(iii) of this (2) Example 2. The IRS initiates an accordance with § 301.6225–1). Partnership’s section, Partnership’s partnership administrative proceeding with respect to total netted partnership adjustment is representative provides the IRS with Partnership’s 2019 taxable year. The IRS reduced to $75 ($100 adjustment less C’s documentation demonstrating that D filed the mails a NOPPA to Partnership for the 2019 share of the adjustment, $25), and the 2019 return and paid all tax and interest due. partnership taxable year proposing a single imputed underpayment is reduced to $30 D’s amended return for D’s 2019 taxable year partnership adjustment increasing ordinary (total netted partnership adjustment of $75, takes into account D’s share of the income by $100, resulting in a $40 imputed after modification, multiplied by 40 percent). partnership adjustment (50 percent of B’s 50 underpayment ($100 multiplied by the 40 (4) Example 4. The facts are the same as percent interest in Partnership, or $25) and percent tax rate). Partner A, an individual, in Example 3 in paragraph (f)(3) of this D paid the tax and interest due as a result of held a 20 percent interest in Partnership section, except $10 of the $25 of the taking into account D’s share of the during 2019. Partnership timely requests adjustment allocated to C is unrelated partnership adjustment in accordance with modification under paragraph (d)(2) of this business taxable income (UBTI) as defined in paragraph (d)(2) of this section. No tax section based on A’s filing an amended section 512 because it is debt-financed attribute in any other taxable year of D is return for the 2019 taxable year taking into income within the meaning of section 514 affected by D taking into account D’s share account $20 of the partnership adjustment (no section 512 UBTI modifications apply) of the partnership adjustment for 2019. The and paying the tax and interest due with respect to which C would be subject to IRS approves the modification and the $25 attributable to A’s share of the increased tax if taken into account by C. As a result, increase in ordinary income allocable to D is income and the tax rate applicable to A for the modification under paragraph (d)(3) of not included in the calculation of the total the 2019 tax year. No tax attribute in any this section with respect to C relates only to netted partnership adjustment (determined in other taxable year of A is affected by A’s $15 of the $25 of ordinary income allocated accordance with § 301.6225–1). As a result, taking into account A’s share of the to C that is not UBTI. Therefore, only a Partnership’s total netted partnership partnership adjustment for 2019. In modification of $15 ($25 less $10) of the total adjustment is $50 ($100, less $25 allocable to accordance with paragraph (d)(2)(iii) of this $100 partnership adjustment may be C, less $25 taken into account by D), and the section, Partnership’s partnership approved by the IRS under paragraph (d)(3) imputed underpayment, after modification, is representative provides the IRS with of this section and, in accordance with $20. documentation demonstrating that A filed paragraph (b)(2) of this section, excluded (7) Example 7. The IRS initiates an the 2019 return and paid all tax and interest when determining the imputed administrative proceeding with respect to due. The IRS approves the modification and, underpayment for Partnership’s 2019 taxable Partnership’s 2019 taxable year. All of in accordance with paragraph (b)(2) of this year. The total netted partnership adjustment Partnership’s partners during its 2019 taxable section, the $20 increase in ordinary income (determined in accordance with § 301.6225– year are individuals. The IRS mails a NOPPA allocable to A is not included in the 1) is reduced to $85 ($100 less $15), and the to Partnership for the 2019 taxable year calculation of the total netted partnership imputed underpayment is reduced to $34 proposing three partnership adjustments. The adjustment (determined in accordance with (total netted partnership adjustment of $85, first partnership adjustment is an increase to § 301.6225–1). Partnership’s total netted after modification, multiplied by 40 percent). ordinary income of $75 for 2019. The second partnership adjustment is reduced to $80 (5) Example 5. The facts are the same as partnership adjustment is an increase in the ($100 adjustment less $20 taken into account in Example 3 in paragraph (f)(3) of this depreciation deduction allowed for 2019 of by A), and the imputed underpayment is section, except that Partnership also timely $25, which under § 301.6225–1(d)(2)(i) is reduced to $32 (total netted partnership requests modification under paragraph (d)(2) treated as a $25 decrease in income. The adjustment of $80 after modification of this section with respect to an amended third adjustment is an increase in long-term multiplied by 40 percent). return filed by B, and, in accordance with capital gain of $10 for 2019. Under the (3) Example 3. The IRS initiates an (d)(2)(iii) of this section, Partnership’s partnership agreement in effect for administrative proceeding with respect to partnership representative provides the IRS Partnership’s 2019 taxable year, the long- Partnership’s 2019 taxable year. Partnership with documentation demonstrating that B term capital gain and the increase in has two equal partners during its entire 2019 filed the 2019 return and paid all tax and depreciation would be specially allocated to taxable year: an individual, A, and a interest due. B reports 50 percent of the B and the increase in ordinary income would partnership-partner, B. During all of 2019, B partnership adjustments ($50) on its be specially allocated to A. In accordance has two equal partners: a tax-exempt entity, amended return, and B calculates an amount with § 301.6225–1(c) and (d), the three C, and an individual, D. The IRS mails a under paragraph (d)(2)(vi)(A) of this section adjustments are placed into three separate

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subgroupings within the residual grouping and the $30 increase in loss attributable to by a partnership in the adjustment year because the partnership adjustments would Property B were included in the same (as defined in § 301.6241–1(a)(1)) in not have been netted at the partnership level subgrouping and netted, then taking the $30 accordance with paragraph (b) of this and would not have been required to be increase in loss into account would result in section. allocated to the partners of the partnership as a decrease in the amount of the imputed a single, net partnership-related item for underpayment. Also, the $30 increased loss (b) Treatment of adjustments by the purposes of section 702(a), other provisions might be limited or restricted if taken into partnership—(1) In general. Except as of the Code, regulations, forms, instructions, account by any person under the passive described in paragraphs (b)(2) through or other guidance prescribed by the IRS. activity rules under section 469. For instance, (7) of this section, a partnership Accordingly, the total netted partnership under section 469, rental activities of the two adjustment that does not result in an adjustment is $85 ($75 net positive properties could be treated as two activities, imputed underpayment is taken into adjustment to ordinary income plus $10 net which could limit a partner’s ability to claim account as a reduction in non-separately the loss. In addition to the potential positive adjustment to long term capital stated income or as an increase in non- gain), and the imputed under payment is $34 limitations under section 469, there are other ($85 multiplied by 40 percent). The net potential limitations that might apply if the separately stated loss for the adjustment negative adjustment to depreciation is an $30 loss were taken into account by any year depending on whether the adjustment that does not result in an imputed person. Therefore, in accordance with adjustment is to a partnership-related underpayment subject to treatment under § 301.6225–1(d), the two adjustments are item that is an item of income or loss. § 301.6225–3. Partnership requests a placed in separate subgroupings within the (2) Separately stated items. In the case modification under paragraph (d)(6) of this residual grouping, the total netted of a partnership adjustment to section to determine a specific imputed partnership adjustment is $100, the imputed partnership-related item that is required underpayment with respect to the $75 underpayment is $40 ($100 × 40 percent), adjustment to ordinary income allocated to and the $30 increase in loss is an adjustment to be separately stated under section A. The specific imputed underpayment is that does not result in an imputed 702, the adjustment is taken into with respect to $75 of the increase in income underpayment under § 301.6225–1(f). account by the partnership in the specially allocated to A and the general Partnership requests modification under adjustment year as a reduction in such imputed underpayment is with respect to $10 paragraph (d)(6) of this section, separately stated item or as an increase of the increase in capital gain and the $25 substantiating to the satisfaction of the IRS in such separately stated item increase in depreciation deduction specially that C1 and C2 are publicly traded C depending on whether the adjustment is allocated to B. If the modification is corporations, and therefore, the passive a reduction or an increase to the activity loss limitations under section 469 of approved by the IRS, the specific imputed separately stated item. underpayment would consist of the $75 the Code do not apply. Partnership also increase in ordinary income, and thus the substantiates to the satisfaction of the IRS (3) Credits. In the case of an total netted partnership adjustment for the that no other limitation or restriction applies adjustment to a partnership-related item specific imputed underpayment would be that would prevent the grouping of the $100 that is reported or could be reported by $75. The specific imputed underpayment is with the $30 loss. The IRS approves a partnership as a credit on the thus $30 ($75 multiplied by 40 percent). The Partnership’s modification request and places partnership’s return for the reviewed general imputed underpayment would the $100 of income and the $30 loss into the year (as defined in § 301.6241–1(a)(8)), subgrouping in the residual grouping under consist of two adjustments: The long term the adjustment is taken into account by capital gain adjustment and the depreciation the rules described in § 301.6225–1(c)(5). Under § 301.6225–1(e), because the two the partnership in the adjustment year adjustment. The long term capital gain as a separately stated item. adjustment and the depreciation adjustment adjustments are in one subgrouping, they are would be placed in different subgroupings netted together, resulting in a total netted (4) Reallocation adjustments. A under § 301.6225–1(d) because they are partnership adjustment of $70 ($100 plus partnership adjustment that reallocates ¥$30) and an imputed underpayment of $28 a partnership-related item to or from a treated separately under section 702. × Accordingly, the long term capital gain ($70 40 percent). After modification, none particular partner or partners that also adjustment and the depreciation adjustment of the adjustments is an adjustment that does does not result in an imputed are not netted, and the long term capital gain not result in an imputed underpayment under § 301.6225–1(f) because the $30 loss is underpayment pursuant to § 301.6225– adjustment would be a net positive 1(f) is taken into account by the adjustment while the depreciation now netted with the $100 of income in a net positive adjustment for the residual grouping. partnership in the adjustment year as a adjustment would be a net negative separately stated item or a non- adjustment. The long term capital gain net (g) Applicability date—(1) In general. separately stated item, as required by positive adjustment would be the only net Except as provided in paragraph (g)(2) section 702. Except as provided in positive adjustment, resulting in a total of this section, this section applies to forms, instructions, and other guidance netted partnership adjustment of $10. The partnership taxable years beginning prescribed by the Internal Revenue general imputed underpayment is $4 ($10 after December 31, 2017, and ending multiplied by 40 percent), and the net Service (IRS), the portion of an negative adjustment to depreciation of $25 after August 12, 2018. (2) Election under § 301.9100–22 in adjustment allocated under this would be an adjustment that does not result paragraph (b)(4) is allocated to in an imputed underpayment under effect. This section applies to any partnership taxable year beginning after adjustment year partners (as defined in § 301.6225–1(f) associated with the general § 301.6241–1(a)(2)) who are also imputed underpayment. November 2, 2015, and before January 1, (8) Example 8. Partnership has two 2018, for which a valid election under reviewed year partners (as defined in reviewed year partners, C1 and C2, both of § 301.9100–22 is in effect. § 301.6241–1(a)(9)) with respect to whom the amount was reallocated. which are C corporations. The IRS mails to ■ Par. 6. Section 301.6225–3 is added to Partnership a NOPPA with two adjustments, (5) Adjustments taken into account by read as follows: both based on rental real estate activity. The partners as part of the modification first adjustment is an increase of rental real § 301.6225–3 Treatment of partnership process. If, as part of modification under estate income of $100 attributable to Property adjustments that do not result in an § 301.6225–2, a relevant partner (as A. The second adjustment is an increase of imputed underpayment. defined in § 301.6225–2(a)) takes into rental real estate loss of $30 attributable to Property B. The Partnership did not treat the (a) In general. Partnership account a partnership adjustment that leasing arrangement with respect to Property adjustments (as defined in § 301.6241– does not result in an imputed A and Property B as an appropriate economic 1(a)(6)) that do not result in an imputed underpayment, and the IRS approves unit for purposes of section 469. If the $100 underpayment (as described in the modification, such partnership increase in income attributable to Property A § 301.6225–1(f)) are taken into account adjustment is not taken into account by

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the partnership in the adjustment year taken into account in accordance with this $300 in ordinary income reportable in its in accordance with § 301.6225–1(a). section. On March 1, 2021, the IRS mails a 2021 taxable year unrelated to the (6) Effect of election under section notice of final partnership adjustment (FPA), administrative proceeding with respect to and because Partnership does not file a Partnership’s 2019 partnership taxable year. 6226. If a partnership makes a valid ¥ election under § 301.6226–1 with petition for readjustment with respect to the Because the $50 net negative adjustment is FPA, the adjustments are finally determined due to a reallocation, the adjustment must be respect to an imputed underpayment, a in 2021, and the adjustment year is taken into account under paragraph (b)(4) of partnership adjustment that does not determined to be 2021 pursuant to this section. Because the net negative result in an imputed underpayment and § 301.6241–1(a)(1). Pursuant to paragraph (a) adjustment was determined to have been that is associated with such imputed of this section, Partnership takes into account entirely allocable to A, and because A was a underpayment as described in the ¥$100 adjustment that does not result in reviewed year partner and is also an § 301.6225–1(g) is taken into account by an imputed underpayment on its 2021 adjustment year partner, the net negative ¥ the reviewed year partners in partnership return. In addition to the $100 adjustment is taken into account by accordance with § 301.6226–3 and is not adjustment to partnership’s 2019 taxable year Partnership by allocating the entire taken into account under this section, adjustment to A on its 2021 tax return. The taken into account under this section. Partnership has an additional $300 in long ¥ (7) Adjustments taken into account $50 negative adjustment does not reduce term capital gain reportable in its 2021 the $300 in ordinary income. previously by partners. If, prior to the taxable year. The ¥$100 negative adjustment mailing of a notice of administrative and the $300 long term capital gain are (e) Applicability date—(1) In general. proceeding by the IRS or the filing of an Partnership’s only long term capital gains Except as provided in paragraph (e)(2) administrative adjustment request by and losses for its 2021 taxable year. Because of this section, this section applies to the partnership, a partner has the ¥$100 net negative adjustment is an partnership taxable years beginning previously taken into account an adjustment to long term capital gain, which after December 31, 2017, and ending adjustment that does not result in an is a separately stated item under section after August 12, 2018. 702(a)(2), the ¥$100 negative adjustment (2) Election under § 301.9100–22 in imputed underpayment that would have must be taken into account in accordance been taken into account under this effect. This section applies to any with paragraph (b)(2) of this section. partnership taxable year beginning after section, such partnership adjustment is Partnership includes both the ¥$100 not taken into account by such partner. negative adjustment and the $300 in long November 2, 2015, and before January 1, (c) Treatment of adjustment year term capital gain as separately stated items 2018, for which a valid election under partners. The rules under subchapter K on its 2021 tax return. § 301.9100–22 is in effect. of chapter 1 of the Internal Revenue (2) Example 2. The facts are the same as ■ Par. 7. Section 301.6226–1 is added to Code with respect to the treatment of in Example 1 in paragraph (d)(1) of this read as follows: partners apply in the case of section, except that the IRS proposes a § 301.6226–1 Election for an alternative to adjustments taken into account by the reallocation adjustment instead of a recharacterization adjustment. The IRS the payment of the imputed underpayment. partnership under this section. determines that the ¥$100 ordinary loss that (a) In general. A partnership may elect (d) Examples. The following examples the Partnership allocated equally to A and B illustrate the rules of this section. For under this section an alternative to the should instead all be allocated all to A. The payment by the partnership of an purposes of these examples, unless IRS mails a NOPPA for the 2019 partnership otherwise provided, each partnership is taxable year proposing a reallocation imputed underpayment determined subject to the provisions of subchapter adjustment resulting in a $50 increase in under section 6225. In addition, a C of chapter 63 of the Internal Revenue ordinary loss allocated to A (negative partnership making a valid election Code, each partnership and its relevant adjustment) and a $50 decrease in ordinary under paragraph (c) of this section is no partners are calendar year taxpayers, all loss allocated to B (positive adjustment). longer liable for the imputed Because the adjustments are the result of a relevant partners are U.S. persons underpayment (as defined in reallocation, they are placed in separate § 301.6241–1(a)(3)) to which the (unless otherwise stated), the highest subgroupings pursuant to § 301.6225–1(d). rate of income tax in effect for all election applies. If a notice of final Because the adjustments are in different partnership adjustment (FPA) mailed taxpayers is 40 percent for all relevant subgroupings, the adjustments are not netted periods, and no partnership requests under § 301.6225–1(e), resulting in a net under section 6231 includes more than modification. negative adjustment of ¥$50 allocated to A one imputed underpayment (as and a net positive adjustment of $50 to B. described in § 301.6225–1(g)), a (1) Example 1. For all of Partnership’s Pursuant to § 301.6225–1(b), the total netted partnership may make an election under 2019, 2020, and 2021 partnership taxable partnership adjustment includes the $50 net this section with respect to one or more years, Partnership has two equal partners, A positive adjustment, and the imputed and B. The IRS initiates an administrative imputed underpayments included in the proceeding with respect to Partnership’s underpayment is $20 ($50 total netted FPA. partnership adjustment × 40 percent). (b) Effect of election—(1) Reviewed 2019 partnership taxable year. The IRS mails ¥ a notice of proposed partnership adjustment Pursuant to § 301.6225–1(f), the $50 net year partners. If a partnership makes a (NOPPA) to Partnership for the 2019 negative adjustment is an adjustment that valid election under this section with does not result in an imputed underpayment partnership taxable year proposing a respect to any imputed underpayment, recharacterization adjustment, changing a and is taken into account in accordance with this section. On March 1, 2021, the IRS mails the reviewed year partners (as defined $100 ordinary loss to a $100 long term capital in § 301.6241–1(a)(9)) must take into loss. Under § 301.6225–1, this an FPA, and because Partnership does not recharacterization adjustment results in two file a petition for readjustment with respect account their share of the partnership adjustments: A $100 increase to ordinary to the FPA, the adjustments are finally adjustments (as defined in § 301.6241– income (positive adjustment) and a ¥$100 determined in 2021, and the adjustment year 1(a)(6)) that are associated with that decrease in long term capital gain (negative is determined to be 2021 pursuant to imputed underpayment and are liable adjustment). Under § 301.6225–1(b), the $100 § 301.6241–1(a)(1). Pursuant to paragraph (a) for any tax, penalties, additions to tax, positive adjustment is the total netted of this section, Partnership takes into account additional amounts, and interest as the ¥$50 adjustment that does not result in partnership adjustment, which is multiplied described in § 301.6226–3. See by the highest rate of 40 percent, resulting in an imputed underpayment on its 2021 a $40 imputed underpayment. Under partnership return. In addition to the ¥$50 § 301.6226–2(f) regarding the § 301.6225–1(f), the ¥$100 negative net negative adjustment to partnership’s 2019 determination of each reviewed year adjustment is an adjustment that does not taxable year taken into account under this partner’s share of the partnership result in an imputed underpayment and is section, Partnership also has an additional adjustments, including the effect of any

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modification approved by the Internal of each reviewed year partner of the petition under section 6234(a). See Revenue Service (IRS) under partnership; § 301.6226–2(b)(3)(iii). § 301.6225–2. (F) The current or last address of each (g) Applicability date—(1) In general. (2) Partnership. A partnership making reviewed year partner that is known to Except as provided in paragraph (g)(2) a valid election under this section is not the partnership; and of this section, this section applies to liable for the imputed underpayment to (G) Any other information prescribed partnership taxable years beginning which the election applies (and no by the IRS in forms, instructions, and after December 31, 2017, and ending assessment of tax, levy, or proceeding in other guidance. after August 12, 2018. any court for the collection of such (d) Determining an election is invalid. (2) Election under § 301.9100–22 in imputed underpayment may be made The IRS may determine an election to be effect. This section applies to any against such partnership). Any invalid without first notifying the partnership taxable year beginning after adjustments that do not result in an partnership or providing the partnership November 2, 2015, and before January 1, imputed underpayment described in an opportunity to correct any failure to 2018, for which a valid election under § 301.6225–1(f) that are associated with satisfy all of the provisions of this § 301.9100–22 is in effect. an imputed underpayment (as described section and § 301.6226–2. If an election ■ Par. 8. Section 301.6226–2 is added to in § 301.6225–1(g)) for which an under this section is determined by the read as follows: election under this section is made are IRS to be invalid, the IRS will notify the not taken into account by the § 301.6226–2 Statements furnished to partnership and the partnership partners and filed with the IRS. partnership in the adjustment year (as representative within 30 days of the (a) In general. A partnership that defined in § 301.6241–1(a)(1)) and determination that the election is instead each reviewed year partners’ makes an election under § 301.6226–1 invalid and the reason for the must furnish to each reviewed year share of the adjustments determined in determination that the election is accordance with § 301.6226–2(f) must partner (as defined in § 301.6241– invalid. If the IRS makes a 1(a)(9)) and file with the Internal be included on the statement described determination that an election under in § 301.6226–2. Revenue Service (IRS) a statement that this section is invalid, section 6225 includes the items required by (c) Time, form, and manner for applies with respect to the imputed making the election—(1) In general. An paragraphs (e) and (f) of this section underpayment as if the election was with respect to each reviewed year election under this section is valid only never made, the IRS may assess the if all of the provisions of this section partner’s share of partnership imputed underpayment against the adjustments (as defined in § 301.6241– and § 301.6226–2 (regarding statements partnership (without regard to the filed with the IRS and furnished to 1(a)(6)) associated with the imputed limitations under section 6232(b)), and underpayment for which an election reviewed year partners) are satisfied. An the partnership must pay the imputed election under this section is valid until under § 301.6226–1 is made. The underpayment under section 6225 and statements furnished to the reviewed the IRS determines that the election is any penalties and interest under section invalid. An election under this section year partners under this section are in 6233. The IRS may not determine that addition to, and must be filed and may only be revoked with the consent an election is invalid based on errors of the IRS. furnished separate from, any other timely corrected by the partnership in statements required to be filed with the (2) Time for making the election. An accordance with § 301.6226–2(d). election under this section must be filed IRS and furnished to partners, including (e) Binding nature of statements. The any statements under section 6031(b). A within 45 days of the date the FPA is election under this section, which mailed by the IRS. The time for filing separate statement under this section includes filing and furnishing must be furnished to each reviewed year such an election may not be extended. statements described in § 301.6226–2, (3) Form and manner of the election— partner with respect to each reviewed are actions of the partnership under (i) In general. An election under this year (as defined in § 301.6241–1(a)(8)) section 6223 and, unless determined section must be signed by the subject to an election under § 301.6226– otherwise by the IRS, the partner’s share partnership representative and filed in 1. A failure to furnish a correct of the adjustments and the applicability accordance with forms, instructions, statement in accordance with this of any penalties, additions to tax, and and other guidance prescribed by the section is subject to penalty under additional amounts as set forth in the IRS and include the information section 6722. See section 6724(d)(2). statement are binding on the partner specified in paragraph (c)(3)(ii) of this (b) Time and manner for furnishing pursuant to section 6223. Accordingly, section. the statements to partners—(1) In (ii) Contents of the election. An a partner may not treat any partnership- general. The statements described in election under this section must include related items (as defined in § 301.6241– paragraph (a) of this section must be the following correct information— 1(a)(6)(ii)) reflected on a statement furnished to the reviewed year partners (A) The name, address, and taxpayer described in § 301.6226–2 on the no later than 60 days after the date all identification number (TIN) of the partner’s return inconsistently with how of the partnership adjustments to which partnership; those items are treated on the statement the statement relates are finally (B) The taxable year to which the that is filed with the IRS. See determined. The partnership election relates; § 301.6222–1(c)(2) (regarding adjustments are finally determined (C) A copy of the FPA to which the partnership-related items the treatment upon the later of: election relates; of which a partner is bound to under (i) The expiration of the time to file (D) In the case of an FPA that includes section 6223). a petition under section 6234; or more than one imputed underpayment, (f) Coordination with section 6234 (ii) If a petition under section 6234 is identification of the imputed regarding judicial review. Nothing in filed, the date when the court’s decision underpayment to which the election this section affects the rules regarding becomes final. applies; judicial review of a partnership (2) Address used for reviewed year (E) The name and TIN (or alternative adjustment. Accordingly, a partnership partners. The partnership must furnish form of identification as prescribed by that makes an election under this the statements described in paragraph forms, instructions, or other guidance) section is not precluded from filing a (a) of this section to each reviewed year

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partner in accordance with the forms, 1 with respect to the imputed underpayment. of the IRS in accordance with the forms, instructions, and other guidance Partnership timely files a petition for instructions, and other guidance prescribed by the IRS. If the partnership readjustment under section 6234 with the prescribed by the IRS. The partnership mails the statement, it must mail the Tax Court. The IRS prevails, and the Tax may not furnish corrected statements Court sustains all of the adjustments in the statement to the current or last address FPA with respect to the 2020 taxable year. unless it receives consent of the IRS to of the reviewed year partner that is The time to appeal the Tax Court decision make the correction. known to the partnership. If a statement expires, and the Tax Court decision becomes (3) Error discovered by the IRS. If the is returned to the partnership as final on April 10, 2025. Under paragraph IRS discovers an error in the statements undeliverable, the partnership must (b)(1)(ii) of this section, the adjustments in furnished or filed under paragraphs (b) undertake reasonable diligence to the FPA are finally determined on April 10, and (c) of this section and § 301.6226– identify a correct address for the 2025, and Partnership must furnish the 3(e)(3) or the IRS cannot determine reviewed year partner to which the statements described in paragraph (a) of this whether the statements furnished or section to its reviewed year partners and statement relates and, if a correct filed by the partnership are correct electronically file the statements with the IRS because of a failure by the partnership address is identified, mail the statement no later than June 9, 2025. See paragraph (c) to the reviewed year partner at the of this section for the rules regarding filing to comply with any requirement under correct address. the statements with the IRS. this section or § 301.6226–3(e), the IRS (3) Examples. The following examples may require the partnership to correct (c) Time and manner for filing the illustrate the rules of this paragraph (b). such errors in accordance with statements with the IRS. No later than paragraph (d)(1) of this section or to (i) Example 1. During Partnership’s 2020 60 days after the date the partnership taxable year, A, an individual, was a partner provide additional information as adjustments are finally determined (as necessary. Failure by the partnership to in Partnership and had an address at 123 described in paragraph (b)(1) of this Main St. On February 1, 2021, A sells his correct an error or to provide interest in Partnership and informs section), the partnership must information when required by the IRS Partnership that A moved to 456 Broad St. electronically file with the IRS the may be treated by the IRS as a failure On March 15, 2021, Partnership mails A’s statements that the partnership to properly furnish correct statements to statement under section 6031(b) for the 2020 furnishes to each reviewed year partner partners and file the correct statements taxable year to 456 Broad St. On June 1, 2023, under this section, along with a with the IRS as described in paragraphs A moves again but does not inform transmittal that includes a summary of Partnership of A’s new address. In 2023, the (b) and (c) of this section or in the statements filed and such other § 301.6226–3(e)(3). Whether the IRS IRS initiates an administrative proceeding information required in forms, with respect to Partnership’s 2020 taxable requires the partnership to correct any year and mails a notice of final partnership instructions, and other guidance errors discovered by the IRS or provide adjustment (FPA) to Partnership for that year prescribed by the IRS. additional information is discretionary that includes a single imputed (d) Correction of statements—(1) In on the part of the IRS and the IRS is underpayment. Partnership makes a timely general. A partnership corrects an error under no obligation to require the election under section 6226 in accordance in a statement furnished under partnership to provide additional with § 301.6226–1 with respect to the paragraph (b) of this section or filed imputed underpayment and on May 31, information or to correct any errors under paragraph (c) of this section by discovered or brought to the IRS’s 2024, timely mails a statement described in filing the corrected statement with the paragraph (a) of this section to A at 456 attention at any time. Broad St. Although the statement was mailed IRS in the manner prescribed in (4) Adjustments in the corrected to the last address for A that was known to paragraph (c) of this section and statements taken into account by the Partnership, it is returned to Partnership as furnishing a copy of the corrected reviewed year partners. The adjustments undeliverable because unknown to statement to the reviewed year partner included on a corrected statement are Partnership, A had moved. After undertaking to whom the statement relates in taken into account by a reviewed year reasonable diligence to obtain the correct accordance with the forms, instructions, partner in accordance with § 301.6226– address of A, Partnership is unable to and other guidance prescribed by the ascertain the correct address. Therefore, 3 for the reporting year (as defined in IRS. § 301.6226–3(a)). pursuant to paragraph (b)(2) of this section, (2) Error discovered by partnership— Partnership properly furnished the statement (e) Content of the statements. Each to A when it mailed the statement to 456 (i) Discovery within 60 days of statement described in paragraph (a) of Broad St. statement due date. If a partnership this section must include the following (ii) Example 2. The facts are the same as discovers an error in a statement within correct information: in Example 1 in paragraph (b)(3)(i) of this 60 days of the due date for furnishing (1) The name and TIN (or alternative section, except that A lives at 789 Forest Ave the statements to partners and filing the form of identification as prescribed by during all of 2024 and reasonable diligence statements with the IRS (as described in forms, instructions, or other guidance) would have revealed that 789 Forest Ave is paragraphs (b) and (c) of this section of the reviewed year partner to whom the correct address for A, but Partnership did and § 301.6226–3(e)(3)(ii)), the not undertake such diligence. Because the the statement is being furnished; statement was returned as undeliverable and partnership must correct the error in (2) The current or last address of the Partnership did not undertake reasonable accordance with paragraph (d)(1) of this reviewed year partner that is known to diligence to obtain the correct address for A, section and does not have to seek the partnership; Partnership failed to properly furnish the consent of the IRS prior to doing so. (3) The reviewed year partner’s share statement with respect to A pursuant to (ii) Error discovered more than 60 of items as originally reported for the paragraph (b)(2) of this section. days after statement due date. If a reviewed year to the partner on (iii) Example 3. Partnership is a calendar partnership discovers an error more statements furnished to the partner year taxpayer. The IRS initiates an than 60 days after the due date for under section 6031(b) and, if applicable, administrative proceeding with respect to furnishing the statements to partners Partnership’s 2020 taxable year. On January section 6227; 1, 2024, the IRS mails an FPA with respect and filing the statements with the IRS (4) The reviewed year partner’s share to the 2020 taxable year to Partnership that (as described in paragraphs (b) and (c) of partnership adjustments determined includes a single imputed underpayment. of this section and § 301.6226– under paragraph (f)(1) of this section; Partnership makes a timely election under 3(e)(3)(ii)), the partnership may only (5) Modifications approved by the IRS section 6226 in accordance with § 301.6226– correct the error after receiving consent with respect to the reviewed year

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partner (or with respect to any indirect to any indirect partner that holds its accordance with paragraph (b) of this partner (as defined in § 301.6241– interest in the partnership through its section). In addition to being liable for 1(a)(4)) that holds its interest in the interest in the reviewed year partner) the additional reporting year tax, a partnership through its interest in the under § 301.6225–2 are disregarded for reviewed year partner must also reviewed year partner); purposes of determining each partner’s calculate and pay for the reporting year (6) The applicability of any penalty, share of the adjustments under any penalties, additions to tax, and addition to tax, or additional amount paragraph (f)(1) of this section. additional amounts (as determined determined at the partnership level that (g) Coordination with other provisions under paragraph (d) of this section). relates to any adjustments allocable to under subtitle A of the Code—(1) Finally, a reviewed year partner must the reviewed year partner and the Statements furnished to qualified also calculate and pay for the reporting adjustments to which the penalty, investment entities described in section year any interest (as determined under addition to tax, or additional amount 860. If a reviewed year partner is a paragraph (c) of this section). relates, the section of the Internal qualified investment entity within the (b) Determining the aggregate of the Revenue Code (Code) under which each meaning of section 860(b) and the correction amounts—(1) In general. For penalty, addition to tax, or additional partner receives a statement described purposes of paragraph (a) of this section, amount is imposed, and the applicable in paragraph (a) of this section, the the aggregate of the correction amounts rate of each penalty, addition to tax, or partner may be able to avail itself of the is the sum of the correction amounts additional amount determined at the deficiency dividend procedure described in paragraphs (b)(2) and (3) of partnership level; described in § 301.6226–3(b)(4). this section. A correction amount under (7) The date the statement is (2) Liability for tax under section paragraph (b)(2) or (3) of this section furnished to the reviewed year partner; 7704(g)(3). An election under this may be less than zero, and any (8) The partnership taxable year to section has no effect on a partnership’s correction amount that is less than zero which the adjustments relate; and liability for any tax under section may reduce any other correction amount (9) Any other information required by 7704(g)(3) (regarding the exception for with the result that the aggregate of the forms, instructions, and other guidance electing 1987 partnerships from the correction amounts under this prescribed by the IRS. general rule that certain publicly traded paragraph (b)(1) may also be less than (f) Determination of each partner’s partnerships are treated as share of adjustments—(1) Adjustments zero. However, nothing in this section corporations). entitles any partner to a refund of and other amounts—(i) In general. (3) Adjustments subject to chapters 3 Except as described in paragraph chapter 1 tax to which such partner is and 4 of the Internal Revenue Code. A not entitled. See paragraphs (c) and (d) (f)(1)(ii) or (iii) or (f)(2) of this section, partnership that makes an election the adjustments set forth in the of this section requiring a separate under § 301.6226–1 with respect to an determination of interest and penalties, statement described in paragraph (a) of imputed underpayment must pay the this section are reported to the reviewed additions to tax, and additional amounts amount of tax required to be withheld on the correction amount for each year partner in the same manner as each under chapter 3 or chapter 4, if any, in adjusted partnership-related item was applicable taxable year (as defined in accordance with § 301.6241–6(b)(4). paragraph (c)(1) of this section) without originally allocated to the reviewed year (h) Applicability date—(1) In general. regard to the correction amount for any partner on the partnership return for the Except as provided in paragraph (h)(2) other applicable taxable year. reviewed year. of this section, this section applies to (2) Correction amount for the first (ii) Adjusted partnership-related item partnership taxable years beginning affected year—(i) In general. The not reported on the partnership’s return after December 31, 2017, and ending correction amount for the taxable year of for the reviewed year. Except as after August 12, 2018. described in paragraph (f)(1)(iii) of this (2) Election under § 301.9100–22 in the partner that includes the end of the section, if the adjusted partnership- effect. This section applies to any reviewed year (the first affected year) is related item was not reported on the partnership taxable year beginning after the amount by which the reviewed year partnership return for the reviewed November 2, 2015, and before January 1, partner’s chapter 1 tax would increase year, each reviewed year partner’s share 2018, for which a valid election under or decrease for the first affected year if of the adjustments must be determined § 301.9100–22 is in effect. the partner’s taxable income for such year was recomputed by taking into in accordance with how such ■ Par. 9. Section 301.6226–3 is added to account the reviewed year partner’s partnership-related items would have read as follows: been allocated under rules that apply share of the partnership adjustments (as with respect to partnership allocations, § 301.6226–3 Adjustments taken into defined in § 301.6241–1(a)(6)) reflected including under the partnership account by partners. on the statement described in agreement. (a) Effect of taking adjustments into § 301.6226–2 with respect to the (iii) Adjustments that specifically account on tax imposed by chapter 1. partner. allocate items. If an adjustment involves Except as otherwise provided in this (ii) Calculation of the correction an allocation of a partnership-related section, the tax imposed by chapter 1 of amount for the first affected year. The item to a specific partner or in a specific the Internal Revenue Code (chapter 1 correction amount is the amount of manner, including a reallocation of such tax) for each reviewed year partner (as chapter 1 tax that would have been an item, the reviewed year partner’s defined in § 301.6241–1(a)(9)) for the imposed for the first affected year if the share of the adjustment set forth in the taxable year that includes the date a items as adjusted in the statement statement is determined in accordance statement was furnished in accordance described in § 301.6226–2 had been with the adjustment as finally with § 301.6226–2 (the reporting year) is reported as such on the return for the determined (as described in paragraph increased by the additional reporting first affected year less the sum of: (b)(1) of this section). year tax, or if the additional reporting (A) The amount of chapter 1 tax (2) Treatment of modifications year tax is less than zero, decreased by shown by the partner on the return for disregarded. Any modifications such amount. The additional reporting the first affected year (which includes approved by the IRS with respect to the year tax is the aggregate of the amounts shown on an amended return reviewed year partner (or with respect correction amounts (determined in for such year, including an amended

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return filed under section 6225(c)(2) by return filed under section 6225(c)(2) by due date (without extension) of the the reviewed year partner); plus a reviewed year partner); plus reviewed year partner’s return for such (B) Amounts not included in (B) Amounts not included in applicable taxable year until the amount paragraph (b)(2)(ii)(A) of this section but paragraph (b)(3)(ii)(A) of this section but is paid. For purposes of this paragraph previously assessed or collected previously or collected (including the (c)(1), the term applicable taxable year (including the amounts defined in amounts defined in § 1.6664–2(d) of this means the reviewed year partner’s § 1.6664–2(d) of this chapter and any chapter and any amounts paid by the taxable year affected by taking into amounts paid by the partner in partner in accordance with § 301.6225– account adjustments as described in accordance with § 301.6225–2); less 2); less paragraph (b) of this section (for (C) The amount of rebates made (as (C) The amount of rebates made (as instance, the first affected year and any defined in § 1.6664–2(e) of this chapter). defined in § 1.6664–2(e) of this chapter). intervening year in which there is a (iii) Formulaic expression of the (iii) Formulaic expression of the correction amount greater than zero). correction amount for the first affected correction amount for the intervening For purposes of calculating interest year. The correction amount also may be years. The correction amount also may under this paragraph (c), a correction expressed as— be expressed as— amount under paragraph (b)(2) or (3) of ¥ ¥ Correction amount = A (B + C D) Correction amount = A¥(B + C¥D) this section for an applicable taxable Where: year that is less than zero does not Where: A = the amount of chapter 1 tax that would reduce the correction amount for any A = the amount of chapter 1 tax that would have been imposed had the items as other applicable taxable year. adjusted been properly reported on the have been imposed for the intervening (2) Interest on penalties. Interest on return for the first affected year; year; any penalties, additions to tax, or B = the amount shown as chapter 1 tax on B = the amount shown as chapter 1 tax on additional amounts determined under the return for the intervening year the return for the first affected year paragraph (d) of this section is (taking into account amended returns); (taking into account amended returns); C = amounts previously assessed or calculated at the rate set forth in C = amounts previously assessed or paragraph (c)(3) of this section from the collected; and collected; and D = the amount of rebates made. D = the amount of rebates made. due date (including any extension) of the reviewed year partner’s return for (4) Coordination of sections 860 and (3) Correction amount for the the applicable taxable year until the intervening years—(i) In general. The 6226. If a qualified investment entity amount is paid. correction amount for all taxable years (QIE) within the meaning of section (3) Rate of interest. For purposes of after the first affected year and before 860(b) receives a statement described in paragraph (c) of this section, interest is the reporting year (the intervening § 301.6226–2(a) and correctly makes a calculated using the underpayment rate years) is the aggregate of the correction determination within the meaning of under section 6621(a)(2) by substituting amounts determined for each section 860(e)(4) that one or more of the ‘‘5 percentage points’’ for ‘‘3 percentage intervening year. Determining the adjustments reflected in the statement is points’’ in section 6621(a)(2)(B). correction amount for each intervening an adjustment within the meaning of (d) Penalties—(1) Applicability year is a year-by-year determination. section 860(d) with respect to that QIE determined at the partnership level. In The correction amount for each for a taxable year, the QIE may the case of a partnership that makes an intervening year is the amount by which distribute deficiency dividends within election under section 6226, the the reviewed year partner’s chapter 1 the meaning of section 860(f) for that applicability of any penalty, addition to tax for such year would increase or taxable year and avail itself of the tax, and additional amount that relates decrease if the partner’s taxable income deficiency dividend procedures set forth to an adjustment to any partnership- for such year was recomputed by taking in section 860. If the QIE utilizes the related item is determined at the into account any adjustments to tax deficiency dividend procedures with partnership level in accordance with attributes (as defined in § 301.6241– respect to adjustments in a statement section 6221(a). The partnership’s 1(a)(10)) of the partner under paragraph described in § 301.6226–2(a), the QIE reviewed year partners are liable for (b)(3) of this section. may claim a deduction for deficiency such penalties, additions to tax, and (ii) Calculation of the correction dividends against the adjustments additional amounts as determined amount for the intervening years. The furnished to the QIE in the statement in under paragraph (d)(2) of this section. correction amount for each intervening calculating any correction amounts (2) Amount calculated at partner year is the amount of chapter 1 tax that under paragraphs (b)(2) and (3) of this level. A reviewed year partner calculates would have been imposed for the section, and interest on such correction the amount of any penalty, addition to intervening year if any tax attribute of amounts under paragraph (c) of this tax, or additional amount relating to the the partner for the intervening year had section, to the extent that the QIE makes partnership adjustments taken into been adjusted after taking into account deficiency dividend distributions under account under paragraph (b)(1) of this the reviewed year partner’s share of the section 860(f) and complies with all section as if the correction amount were adjustments for the first affected year as requirements of section 860 and the an underpayment or understatement of described in paragraph (b)(2) of this regulations under part 1 of this chapter. the reviewed year partner for the first section (and if any tax attribute of the (c) Interest—(1) Interest on the affected year or intervening year, as partner for the intervening year had correction amounts. Interest on the applicable. The calculation of any been adjusted, after taking into account correction amounts determined under penalty, addition to tax, or additional any adjustments to tax attributes of the paragraph (b) of this section is the amount is based on the characteristics partner in any prior intervening year(s)) aggregate of all interest calculated for of, and facts and circumstances exceeds less the sum of— each applicable taxable year in which applicable to, the reviewed year partner (A) The amount of chapter 1 tax there was a correction amount greater for the first affected year or intervening shown by the partner on the return for than zero at the rate set forth in year, as applicable after taking into the intervening year (which includes paragraph (c)(3) of this section. For each account the partnership adjustments amounts shown on an amended return applicable taxable year, interest on the reflected on the statement. If after taking for such year, including an amended correction amount is calculated from the into account the partnership

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adjustments in accordance with this without regard to the limitations under (B) The adjustment year of the audited section, the reviewed year partner does section 6232(b). See § 301.6232–1(c)(2). partnership; not have an underpayment, or has an A failure to furnish statements in (C) The extended due date for the understatement that falls below the accordance with paragraph (e)(3) of this return for the adjustment year of the applicable threshold for the imposition section is treated as a failure to timely audited partnership (as described in of a penalty, no penalty is due from that pay an imputed underpayment required paragraph (e)(3)(ii) of this section); reviewed year partner under this under paragraph (e)(4)(i) of this section, (D) The date on which the audited paragraph (d)(2). For penalties in the unless the pass-through partner partnership furnished its statements case of a pass-through partner that computes and pays an imputed required under § 301.6226–2(b); makes a payment under paragraph (e)(4) underpayment in accordance with (E) The name and TIN of the of this section, see paragraph (e)(4)(iv) paragraph (e)(4) of this section. See partnership that furnished the statement of this section. section 6651(i). to the pass-through partner if different (3) Partner-level defenses to penalties. (ii) Failures relating to partnership from the audited partnership; A reviewed year partner (including a adjustment tracking report. Failure to (F) The name and TIN of the pass- pass-through partner (as defined in timely file the partnership adjustment through partner; § 301.6241–1(a)(5))) claiming that a tracking report as required in paragraph (G) The pass-through partner’s taxable penalty, addition to tax, or additional (e)(1) of this section, or filing such year to which the adjustments reflected amount that relates to a partnership report without showing the information on the statements described in adjustment reflected on a statement required under paragraph (e)(1) of this paragraph (e)(3) of this section relates; described in § 301.6226–2 (or paragraph section, is subject to the penalty (H) The name and TIN (or alternative (e)(3) of this section) is not due because imposed by section 6698. form of identification as prescribed by of a partner-level defense must first pay (3) Furnishing statements to forms, instructions, or other guidance) the penalty and file a claim for refund partners—(i) In general. A pass-through of the affected partner to whom the for the reporting year. Partner-level partner described in paragraph (e)(1) of statement is being furnished; defenses are limited to those that are this section must furnish a statement (I) The current or last address of the personal to the reviewed year partner that includes the items required by affected partner that is known to the (for example, a reasonable cause and paragraph (e)(3)(iii) of this section to pass-through partner; good faith defense under section 6664(c) each partner that held an interest in the (J) The affected partner’s share of that is based on the facts and pass-through partner at any time during items as originally reported to such circumstances applicable to the the taxable year of the pass-through partner under section 6031(b) and, if partner). partner to which the adjustments in the applicable, section 6227, for the taxable (e) Pass-through partners—(1) In statement furnished to the pass-through year to which the adjustments reflected general. Except as provided in partner relate (affected partner). The on the statement furnished to the pass- paragraph (e)(6) of this section, if a pass- statements described in this paragraph through partner relate; through partner is furnished a statement (e)(3) must be filed with the IRS by the (K) The affected partner’s share of described in § 301.6226–2 (including a due date prescribed in paragraph partnership adjustments determined statement described in paragraph (e)(3) (e)(3)(ii) of this section. Except as under § 301.6226–2(f)(1) as if the of this section) with respect to otherwise provided in paragraphs affected partner were the reviewed year adjustments of a partnership that made (e)(3)(ii), (iii), and (v) of this section, the partner and the pass-through partner an election under § 301.6226–1 (audited rules applicable to statements described were the partnership; partnership), the pass-through partner in § 301.6226–2 are applicable to (L) Modifications approved by the IRS must file with the IRS a partnership statements described in this paragraph with respect to the affected partner that adjustment tracking report in (e)(3). holds its interest in the audited accordance with forms, instructions, or (ii) Time for filing and furnishing the partnership through the pass-through other guidance prescribed by the IRS on statements. In accordance with forms, partner; or before the due date described in instructions, and other guidance (M) The applicability of any penalties, paragraph (e)(3)(ii) of this section, and prescribed by the IRS, the pass-through additions to tax, or additional amounts file and furnish statements in partner must file with the IRS and determined at the audited partnership accordance with paragraph (e)(3) of this furnish to its affected partners the level that relate to any adjustments section. The pass-through partner must statements described in paragraph (e)(3) allocable to the affected partner and the comply with paragraph (e) of this of this section no later than the adjustments allocated to the affected section with respect to each statement extended due date for the return for the partner to which such penalties, furnished to the pass-through partner. adjustment year (as defined in additions to tax, or additional amounts (2) Failure to file and furnish required § 301.6241–1(a)(1)) of the audited relate, the section of the Internal documents—(i) Failure to timely file partnership. For purposes of this Revenue Code under which each and furnish statements. If any pass- section, the extended due date is the penalty, addition to tax, or additional through partner fails to timely file and extended due date under section 6081 amount is imposed, and the applicable furnish correct statements in accordance regardless of whether the audited rate of each penalty, addition to tax, or with paragraph (e)(3) of this section, the partnership is required to file a return additional amount; and pass-through partner must compute and for the adjustment year or timely files a (N) Any other information required by pay an imputed underpayment, as well request for an extension under section forms, instructions, and other guidance as any penalties, additions to tax, 6081. prescribed by the IRS. additional amounts, and interest with (iii) Contents of statements. Each (iv) Affected partner must take into respect to the adjustments reflected on statement described in paragraph (e)(3) account the adjustments. A statement the statement furnished to the pass- of this section must include the furnished to an affected partner in through partner in accordance with following correct information— accordance with paragraph (e)(3) of this paragraph (e)(4) of this section. The IRS (A) The name and taxpayer section is treated as if it were a may assess such imputed underpayment identification number (TIN) of the statement described in § 301.6226–2. An against such pass-through partner audited partnership; affected partner that is a pass-through

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partner must take into account the under paragraph (e)(4)(iii) of this underpayment were a correction adjustments reflected on such a section. The pass-through partner must amount for the first affected year. statement in accordance with this also pay any penalties, additions to tax, (v) Adjustments that do not result in paragraph (e). An affected partner that is additional amounts, and interest as an imputed underpayment. not a pass-through partner must take determined under paragraph (e)(4)(iv) of Adjustments taken into account under into account the adjustments reflected this section. A failure to timely pay an paragraph (e)(4) of this section that do on such a statement in accordance with imputed underpayment required under not result in an imputed underpayment this section by treating references to this paragraph (e)(4) is subject to (as defined in § 301.6225–1(f)) are taken ‘‘reviewed year partner’’ as ‘‘affected penalty under section 6651(i). into account by the pass-through partner partner’’. For purposes of this paragraph (ii) Time of payment. A pass-through in accordance with § 301.6225–3 in the (e)(3)(iv), an affected partner that is not partner must file a partnership taxable year of the pass-through partner a pass-through partner takes into adjustment tracking report and compute that includes the date the imputed account the adjustments in accordance and pay the imputed underpayment and underpayment required under with this section by determining its any penalties, additions to tax, paragraph (e)(4)(i) of this section is paid. reporting year based on the date upon additional amounts, and interest, as If, after making the computation which the audited partnership described in paragraph (e)(4)(i) of this described in paragraph (e)(4)(iii) of this furnished its statements to its reviewed section, in accordance with forms, section, no imputed underpayment year partners (as described in paragraph instructions, and other guidance no later exists and therefore no payment is (a) of this section). No addition to tax than the extended due date for the required under paragraph (e)(4)(i) of this under section 6651 related to any return for the adjustment year of the section, the adjustments that did not additional reporting year tax will be audited partnership. result in an imputed underpayment are imposed if an affected partner that is not (iii) Computation of the imputed taken into account by the pass-through a pass-through partner reports and pays underpayment. The imputed partner in accordance with § 301.6225– the additional reporting year tax within underpayment under paragraph (e)(4)(i) 3 in the taxable year of the pass-through 30 days of the extended due date for the of this section is computed in the same partner that includes the date the return for the adjustment year of the manner as an imputed underpayment statement described in § 301.6226–2 (or audited partnership (as described in under section 6225 and § 301.6225–1, paragraph (e)(3) of this section) is paragraph (e)(3)(ii) of this section). except that adjustments reflected on the furnished to the pass-through partner. (vi) Coordination with chapters 3 and (v) Adjustments subject to chapters 3 statement furnished to the pass-through and 4 of the Internal Revenue Code. If 4. If a pass-through partner pays an partner under § 301.6226–2 are treated a pass-through partner furnishes imputed underpayment described in as partnership adjustments (as defined statements to its affected partners in paragraph (e)(4)(i) of this section, in § 301.6241–1(a)(6)) for the first accordance with paragraph (e)(3) of this § 301.6241–6(b)(3) applies to the pass- affected year. Any modification section, the pass-through partner must through partner by substituting ‘‘pass- approved by the IRS under § 301.6225– comply with the requirements of through partner’’ for ‘‘partnership’’ 2 with respect to the pass-through § 301.6241–6(b)(4), and an affected where § 301.6241–6(b)(3) refers to the partner (including any modifications partner must comply with the partnership that pays the imputed with respect to a relevant partner (as requirements of paragraph (f) of this underpayment. defined in § 301.6225–2(a)) that holds section. For purposes of applying both (5) Treatment of pass-through § 301.6241–6(b)(4) and paragraph (f) of its interest in the audited partnership partners that are not partnerships—(i) S this section, as appropriate, references through its interest in the pass-through corporations. For purposes of this to the ‘‘partnership’’ should be replaced partner) reflected on the statement paragraph (e), an S corporation is with references to the ‘‘pass-through furnished to the pass-through partner treated as a partnership and its partner’’; references to the ‘‘reviewed under § 301.6226–2 (or paragraph (e)(3) shareholders are treated as partners. year partner’’ should be replaced with of this section) is taken into account in (ii) Trusts and estates. Except as references to the ‘‘affected partner’’; calculating the imputed underpayment provided in paragraph (g) of this references to the statement required under this paragraph (e)(4)(iii). Any section, for purposes of paragraph (e) of under paragraph (a) of this section and modification that was not approved by this section, a trust and its beneficiaries, its due date should be replaced with the IRS under § 301.6225–2 may not be and an estate and its beneficiaries are references to the statement required taken into account in calculating the treated in the same manner as a under paragraph (e)(3) of this section imputed underpayment under this partnership and its partners. and its due date described in paragraph paragraph (e)(4)(iii). (6) Pass-through partners subject to (e)(3)(ii) of this section; references to the (iv) Penalties and interest—(A) chapter 1 tax. A pass-through partner ‘‘reporting year’’ should be read in Penalties. A pass-through partner must that is subject to tax under chapter 1 of accordance with paragraph (e)(3)(iv) of compute and pay any applicable the Code on the adjustments (or a this section; and references to the penalties, additions to tax, and portion of the adjustments) reflected on partnership return should be read as additional amounts on the imputed the statement furnished to such partner references to the return for the underpayment calculated under under § 301.6226–2 (or paragraph (e)(3) adjustment year of the audited paragraph (e)(4)(iii) of this section as if of this section) takes the adjustments partnership as described in paragraph such amount were an imputed into account under this paragraph (e)(6) (e)(3)(ii) of this section. underpayment for the pass-through when the pass-through partner (4) Pass-through partner pays an partner’s first affected year. See calculates and pays the additional imputed underpayment—(i) In general. § 301.6233(a)–1(c). reporting year tax as determined under If a pass-through partner described in (B) Interest. A pass-through partner paragraph (b) of this section and paragraph (e)(1) of this section does not must pay interest on the imputed furnishes statements to its partners in furnish statements in accordance with underpayment calculated under accordance with paragraph (e)(3) of this paragraph (e)(3) of this section, the pass- paragraph (e)(4)(iii) of this section in section. Notwithstanding the prior through partner must compute and pay accordance with paragraph (c) of this sentence, a pass-through partner is only an imputed underpayment determined section as if such imputed required to include on a statement

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under paragraph (e)(3) of this section must take into account the adjustments additional reporting year tax as determined the adjustments that would be required reflected on that statement in in accordance with paragraph (b) of this to be included on statements furnished accordance with this section as if the section, in addition to A’s penalties and to owners or beneficiaries under owner were the reviewed year partner. interest. A computes his additional reporting year tax as follows. First, A determines the sections 6037 and 6034A, as applicable, (h) Examples. The following examples correction amount for the first affected year if the pass-through partner had correctly illustrate the rules of this section. For (the 2020 taxable year) by taking into account reported the items for the year to which purposes of these examples, unless A’s share of the partnership adjustment the adjustments relate. If the pass- otherwise stated, each partnership is (¥$100 reduction in charitable contribution) through partner fails to comply with the subject to subchapter C of chapter 63 of for the 2020 taxable year. A determines the requirements of this paragraph (e)(6), the Code, each partnership and partner amount by which his chapter 1 tax for 2020 the pass-through partner must compute has a calendar year taxable year, no would have increased or decreased if the and pay an imputed underpayment, as modifications are requested by any $100 adjustment to the charitable well as any penalties, additions to tax, partnership under § 301.6225–2, no contribution from Partnership were taken into account for that year. There is no additional amounts, and interest with penalties, additions to tax, or additional adjustment to tax attributes in A’s respect to the adjustments reflected on amounts are determined at the intervening years as a result of the the statement furnished to such partner partnership level, all persons are U.S. adjustment to the charitable contribution for in accordance with paragraph (e)(4) of persons, the highest rate of income tax 2020. Therefore, A’s aggregate of the this section. in effect for is 40 percent for all relevant correction amounts is the correction amount (f) Partners subject to withholding periods, the highest rate of income tax for 2020, A’s first affected year. In addition under chapters 3 and 4. A reviewed in effect for corporations is 20 percent to the aggregate of the correction amounts year partner that is subject to for all relevant periods, and the highest being added to the chapter 1 tax that A owes for 2026, the reporting year, A must calculate withholding under § 301.6241–6(b)(4) rate of tax for individuals for capital must file an income tax return for the a 20 percent accuracy-related penalty on A’s gains is 15 percent for all relevant underpayment attributable to the $100 reporting year to report its additional periods. adjustment to the charitable contribution, as reporting year tax and its share of any (1) Example 1. On its partnership return well as interest on the correction amount for penalties, additions to tax, additional for the 2020 tax year, Partnership reported the first affected year and the penalty amounts, and interest (notwithstanding ordinary income of $1,000 and charitable determined in accordance with paragraph (c) any filing exception in § 1.6012– contributions of $400. On June 1, 2023, the of this section. Interest on the correction 1(b)(2)(i) or § 1.6012–2(g)(2)(i) of this IRS mails a notice of final partnership amount for the first affected tax year runs chapter). The amount of tax paid by a adjustment (FPA) to Partnership for from April 15, 2021, the due date of A’s 2020 partnership under § 301.6241–6(b)(4) is Partnership’s 2020 year disallowing the return (the first affected tax year) until A allowed as a credit under section 33 to charitable contribution in its entirety and pays this amount. In addition, interest runs the reviewed year partner to the extent determining that a 20 percent accuracy- on the penalty from April 15, 2021, the due date of A’s 2020 return for the first affected that the tax is allocable to the reviewed related penalty under section 6662(b) applies to the disallowance of the charitable year until A pays this amount. On his 2026 year partner (within the meaning of contribution, and setting forth a single income tax return, A must report the § 1.1446–3(d)(2) of this chapter) or is imputed underpayment with respect to such additional reporting year tax determined in actually withheld from the reviewed adjustments. Partnership makes a timely accordance with paragraph (b) of this section, year partner (within the meaning of election under section 6226 in accordance which is the correction amount for 2020, plus § 1.1464–1(a) or § 1.1474–3 of this with § 301.6226–1 with respect to the the accuracy-related penalty determined in chapter). The credit is allowed against imputed underpayment in the FPA for accordance with paragraph (d) of this section, the reviewed year partner’s income tax Partnership’s 2020 year and files a timely and interest determined in accordance with liability for its reporting year. The petition in the Tax Court challenging the paragraph (c) of this section on the correction reviewed year partner must substantiate partnership adjustments. The Tax Court amount for 2020 and the penalty. determines that Partnership is not entitled to (2) Example 2. On its partnership return the credit by attaching the applicable any of the claimed $400 in charitable for the 2020 tax year, Partnership reported an Form 1042–S, Foreign Person’s U.S. contributions and upholds the applicability ordinary loss of $500. On June 1, 2023, the Source Income Subject to Withholding, of the penalty. The decision regarding IRS mails an FPA to Partnership for the 2020 or Form 8805, Foreign Partner’s Partnership’s 2020 tax year becomes final on taxable year determining that $300 of the Information Statement of Section 1446 December 15, 2025. Pursuant to § 301.6226– $500 in ordinary loss should be Withholding Tax, to its income tax 2(b), the partnership adjustments are finally recharacterized as a long-term capital loss. return for the reporting year, as well as determined on December 15, 2025. On Partnership has no long-term capital gain for satisfying any other requirements February 2, 2026, Partnership files the its 2020 tax year. The FPA for Partnership’s prescribed by the IRS in forms and statements described under § 301.6226–2 2020 tax year reflects an adjustment of an instructions. with the IRS and furnishes to partner A, an increase in ordinary income of $300 (as a (g) Treatment of disregarded entities individual who was a partner in Partnership result of the disallowance of the during 2020, a statement described in recharacterization of $300 from ordinary loss and wholly-owned grantor trusts. In the § 301.6226–2. A had a 25 percent interest in to long-term capital loss) and an imputed case of a reviewed year partner that is Partnership during all of 2020 and was underpayment related to that adjustment, as a wholly-owned entity disregarded as allocated 25 percent of all items from well as an adjustment of an additional $300 separate from its owner for Federal Partnership for that year. The statement in long-term capital loss for 2020 which does income tax purposes in the reviewed shows A’s share of ordinary income reported not result in an imputed underpayment year or a trust that is wholly owned by on Partnership’s return for the reviewed year under § 301.6225–1(f). Partnership makes a only one person in the reviewed year, of $250 and A’s share of the charitable timely election under section 6226 in whether the grantor or another person, contribution reported on Partnership’s return accordance with § 301.6226–1 with respect to and where the trust reports the owner’s for the reviewed year of $100. The statement the imputed underpayment in the FPA and information to payors under § 1.671– also shows an adjustment to A’s share of the does not file a petition for readjustment charitable contribution, a reduction of $100 under section 6234. Accordingly, under 4(b)(2)(i)(A) of this chapter and that is resulting in $0 charitable contribution § 301.6226–1(b)(2) and § 301.6225–3(b)(6), furnished a statement described in allocated to A from Partnership for 2020. In the adjustment year partners (as defined in § 301.6226–2 (or paragraph (e)(3) of this addition, the statement reports that a 20 § 301.6241–1(a)(2)) do not take into account section), the owner of the disregarded percent accuracy-related penalty under the $300 long-term capital loss that does not entity or wholly-owned grantor trust section 6662(b) applies. A must pay the result in an imputed underpayment. Rather,

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the $300 long-term capital loss is taken into August 31, 2023. On September 30, 2023, the FPA reflects the partnership adjustment account by the reviewed year partners. The Partnership files the statements described increasing ordinary income by $10. The FPA time to file a petition expires on August 30, under § 301.6226–2 with the IRS and reflects a general imputed underpayment 2023. Pursuant to § 301.6226–2(b), the furnishes to partner C, a nonresident alien with respect to the increase in ordinary partnership adjustments become finally individual who was a partner in Partnership income and a specific imputed determined on August 31, 2023. On during 2020 (and remains a partner in underpayment with respect to the increase in September 30, 2023, Partnership files with Partnership in 2023), a statement described long-term capital gain allocated to F, G, and the IRS statements described in § 301.6226– in § 301.6226–2. C had a 50 percent interest H. In addition, the FPA reflects a $30 2 and furnishes statements to all of its in Partnership during all of 2020 and was partnership adjustment that does not result reviewed year partners in accordance with allocated 50 percent of all items from in an imputed underpayment, that is, the § 301.6226–2. One partner of Partnership in Partnership for that year. The statement reduction of $30 in long-term capital gain 2020, B (an individual), had a 25 percent shows C’s share of U.S. source dividend with respect to E that is associated with the interest in Partnership during all of 2020 and income reported on Partnership’s return for specific imputed underpayment in was allocated 25 percent of all items from the reviewed year of $1,000 and an accordance with § 301.6225–1(g)(2)(iii)(B). Partnership for that year. The statement filed adjustment to U.S. source dividend income Partnership makes a timely election under with the IRS and furnished to B shows B’s of $1,000. In addition, the statement reports section 6226 in accordance with § 301.6226– allocable share of the ordinary loss reported that a 20 percent accuracy-related penalty 1 with respect to the specific imputed on Partnership’s return for the 2020 taxable under section 6662(b) applies. Under underpayment relating to the reallocation of year as $125. The statement also shows an § 301.6241–6(b)(4)(i), because the additional long-term capital gain. Partnership does not adjustment to B’s allocable share of the $1,000 in U.S. source dividend income file a petition for readjustment under section ordinary loss in the amount of ¥$75, allocated to C is an amount subject to 6234. The time to file a petition expires on resulting in a corrected ordinary loss withholding (as defined in § 301.6241– August 30, 2023. Pursuant to § 301.6226– allocated to B of $50 for taxable year 2020 6(b)(2)), Partnership must pay the amount of 2(b), the partnership adjustments become ($125 originally allocated to B less $75 which tax required to be withheld on the finally determined on August 31, 2023. is B’s share of the adjustment to the ordinary adjustment. See §§ 1.1441–1(b)(1) and Partnership timely pays the general imputed loss). In addition, the statement shows an 1.1441–5(b)(2)(i)(A) of this chapter. Under underpayment that resulted from the increase to B’s share of long-term capital loss § 301.6241–6(b)(4)(ii), Partnership may partnership adjustment to ordinary income. in the amount of $75 (B’s share of the reduce the amount of withholding tax it must On September 30, 2023, Partnership files adjustment that did not result in the imputed pay because it has valid documentation from with the IRS statements described in underpayment with respect to Partnership). B 2020 that establishes that C was entitled to § 301.6226–2 and furnishes statements to its must pay the additional reporting year tax as a reduced rate of withholding in 2020 on U.S. partners reflecting their share of the determined in accordance with paragraph (b) source dividend income of 10 percent partnership adjustments as finally of this section. B computes his additional pursuant to a treaty. Partnership withholds determined in the FPA that relate to the reporting year tax as follows. First, B $100 of tax from C’s distributive share, remits specific imputed underpayment, that is, the determines the correction amount for the first the tax to the IRS, and files the necessary reallocation of long-term capital gain. The affected year (the 2020 taxable year) by taking return and information returns required by statements for F, G, and H each reflect a into account B’s share of the partnership § 1.1461–1 of this chapter. On his 2023 partnership adjustment of an additional $10 adjustments (a $75 reduction in ordinary loss return, C must report the additional reporting of long-term capital gain for 2020. The and an increase of $75 in long-term capital year tax determined in accordance with statement for E reflects a partnership loss) for the 2020 taxable year. B determines paragraph (b) of this section, the accuracy- adjustment of a reduction of $30 of long-term the amount by which his chapter 1 tax for related penalty determined in accordance capital gain for 2020. Because E, F, G, and 2020 would have increased or decreased if with paragraph (d) of this section, and H are all individuals, all partners must report the $75 adjustment to ordinary loss and the interest determined in accordance with the additional reporting year tax as $75 adjustment to long-term capital loss from paragraph (c) of this section on the correction determined in accordance with paragraph (b) Partnership were taken into account for that amount for the first affected year, the of this section in the partners’ reporting year, year. Second, B determines if there is any correction amount for any intervening year, which is 2023. They compute their increase or decrease in chapter 1 tax for any and the penalty. Under paragraph (f) of this additional reporting year tax as follows. First, intervening year as a result of the adjustment section, C may claim the $100 withholding they determine the correction amount for the to the ordinary and capital losses for 2020. tax paid by Partnership pursuant to first affected year (the 2020 taxable year) by B’s aggregate of the correction amounts is the § 301.6241–6(b)(4)(i) as a credit under section taking into account their share of the correction amount for 2020, B’s first affected 33 against C’s income tax liability on his partnership adjustments for the 2020 taxable year plus any correction amounts for any 2023 return. year. They each determine the amount by intervening years. B is also liable for any (4) Example 4. On its partnership return which their chapter 1 tax for 2020 would interest on the correction amount for the first for the 2020 tax year, Partnership reported have increased or decreased if the adjustment affected year and for any intervening year as ordinary income of $100 and a long-term to long-term capital gain from Partnership determined in accordance with paragraph (c) capital gain of $40. Partnership had four were taken into account for that year. of this section. equal partners during the 2020 tax year: E, F, Second, they determine if there is any (3) Example 3. On its partnership return G, and H, all of whom were individuals. On increase or decrease in chapter 1 tax for any for the 2020 tax year, Partnership, a domestic its partnership return for the 2020 tax year, intervening year as a result of the adjustment partnership, reported U.S. source dividend the entire long-term capital gain was to the long-term capital gain for 2020. Their income of $2,000. On June 1, 2023, the IRS allocated to partner E and the ordinary aggregate of the correction amounts is the mails an FPA to Partnership for Partnership’s income was allocated to all partners based on sum of the correction amount for 2020, their 2020 year increasing the amount of U.S. their equal (25 percent) interest in first affected year and any correction source dividend income to $4,000 and Partnership. The IRS initiates an amounts for any intervening years. They are determining that a 20 percent accuracy- administrative proceeding with respect to also liable for any interest on the correction related penalty under section 6662(b) applies Partnership’s 2020 taxable year and amount for the first affected year and for any to the increase in U.S. source dividend determines that the long-term capital gain intervening year as determined in accordance income. Partnership makes a timely election should have been allocated equally to all four with paragraph (c) of this section. under section 6226 in accordance with partners and that Partnership should have (5) Example 5. On its partnership return § 301.6226–1 with respect to the imputed recognized an additional $10 in ordinary for the 2020 taxable year, Partnership underpayment in the FPA for Partnership’s income. On June 1, 2023, the IRS mails an reported a long-term capital loss of $500. 2020 year and does not file a petition for FPA to Partnership reflecting the reallocation During an administrative proceeding with readjustment under section 6234. The time to of the $40 long-term capital gain so that F, respect to Partnership’s 2020 taxable year, file a petition expires on August 30, 2023. G, and H each have $10 increase in long-term the IRS mails a notice of proposed Pursuant to § 301.6226–2(b), the partnership capital gain and E has a $30 reduction in partnership adjustment (NOPPA) in which it adjustments become finally determined on long-term capital gain for 2020. In addition, proposes to disallow $200 of the reported

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$500 long-term capital loss, the only individual) and J (a partnership). For the IRS statements described in § 301.6226–2 and adjustment. Accordingly, the imputed 2020 tax year, J has two equal partners—K furnishes statements to its partners reflecting underpayment reflected in the NOPPA is $80 and L—both individuals. On June 1, 2023, their share of the partnership adjustments as ($200 × 40 percent). F, a C corporation the IRS mails an FPA to Partnership for finally determined in the FPA. The partner with a 50 percent interest in Partnership’s 2020 year increasing statements to M and N reflect a partnership Partnership, received 50 percent of all long- Partnership’s ordinary income by $500,000 adjustment of $6,000 of ordinary income for term capital losses for 2020. As part of the and asserting an imputed underpayment of the 2020 tax year. On February 1, 2024, N modification process described in $200,000. Partnership makes a timely takes the adjustments into account under § 301.6225–2(d)(2), F files an amended return election under section 6226 in accordance paragraph (e)(3) of this section by filing a for 2020 taking into account F’s share of the with § 301.6226–1 with respect to the partnership adjustment tracking report and partnership adjustment ($100 reduction in imputed underpayment in the FPA for furnishing a statement to O reflecting her long-term capital loss) and pays the tax owed Partnership’s 2020 year and does not file a share of the adjustments reported to N on the for 2020, including interest. Also as part of petition for readjustment under section 6234. statement it received from Partnership. M the modification process, F also files The time to file a petition expires on August does not furnish statements and instead amended returns for 2021 and 2022 and pays 30, 2023. Pursuant to § 301.6226–2(b), the chooses to calculate and pay an imputed additional tax (and interest) for these years partnership adjustments become finally underpayment under paragraph (e)(4) of this because the reduction in long-term capital determined on August 31, 2023. Therefore, section equal to $1,200 ($6,000 × 40 percent) loss for 2020 affected the tax due from F for Partnership’s adjustment year is 2023, the on the adjustments reflected on the statement 2021 and 2022. See § 301.6225–2(d)(2). The due date of the adjustment year return is it received from Partnership plus interest on reduction of the long-term capital loss in March 15, 2024 and the extended due date the amount calculated in accordance with 2020 did not affect any other taxable year of for the adjustment year return is September paragraph (e)(4)(iv)(B) of this section. On her F. This is the only modification requested. 16, 2024. On October 12, 2023, Partnership 2023 return, O properly takes the The IRS approves the modification with timely files with the IRS statements adjustments into account under this section. respect to F and on June 1, 2023, mails an described in § 301.6226–2 and timely Therefore, O reports and pays the additional FPA to Partnership for Partnership’s 2020 furnishes statements to its partners reflecting reporting year tax determined in accordance year reflecting the partnership adjustment their share of the partnership adjustments as with paragraph (b) of this section, which is reducing the long-term capital loss in the finally determined in the FPA. The the correction amount for 2020 plus any amount of $200. The FPA also reflects the statements to M and J each reflect a correction amounts for 2021 and 2022 (if the modification to the imputed underpayment partnership adjustment of $250,000 of adjustments in 2020 resulted in any changes based on the amended returns filed by F ordinary income. M takes her share of the to the tax attributes of O in those years), and taking into account F’s share of the reduction adjustments reflected on the statements pays interest determined in accordance with in the long-term capital loss. Therefore, the furnished by Partnership into account on M’s paragraph (c) of this section on the correction imputed underpayment in the FPA is $40 return for the 2023 tax year in accordance amounts for each of those years. ($100 × 40 percent). Partnership makes a with paragraph (b) of this section. On April (8) Example 8. On its partnership return timely election under section 6226 in 1, 2024, J files the adjustment tracking report for the 2020 tax year, Partnership reported accordance with § 301.6226–1 with respect to and files and furnishes statements to K and $1,000 of ordinary loss. Partnership has two the imputed underpayment in the FPA for L reflecting each partner’s share of the equal partners for the 2020 tax year: P and Partnership’s 2020 year and files a timely adjustments reflected on the statements Q, both S corporations. For the 2020 tax year, petition in the Tax Court challenging the Partnership furnished to J. K and L must take P had one shareholder, R, an individual. For partnership adjustments. The Tax Court their share of adjustments reflected on the the 2020 tax year, Q had two shareholders, upholds the determinations in the FPA and statements furnished by J into account on S and T, both individuals. On June 1, 2023, the decision regarding Partnership’s 2020 tax their returns for the 2023 tax year in the IRS mails an FPA to Partnership for year becomes final on December 15, 2025. accordance with paragraph (b) of this section Partnership’s 2020 year determining $500 of Pursuant to § 301.6226–2(b), the partnership by treating themselves as reviewed year the $1,000 of ordinary loss should be adjustments are finally determined on partners for purposes of paragraph (b). recharacterized as $500 of long-term capital December 15, 2025. On February 1, 2026, (7) Example 7. On its partnership return loss and $500 of the ordinary loss should be Partnership files the statements described for the 2020 tax year, Partnership reported disallowed. The FPA asserts an imputed under § 301.6226–2 with the IRS and that it placed Asset, which had a depreciable underpayment of $400 ($1,000 × 40 percent) furnishes to its partners statements reflecting basis of $210,000, into service in 2020 and with respect to the $1,000 reduction to their shares of the partnership adjustment. depreciated Asset over 5 years, using the ordinary loss and reflecting an adjustment The statement issued to F reflects F’s share straight-line method. Accordingly, that does not result in an imputed of the partnership adjustment for Partnership claimed depreciation of $42,000 underpayment of a $500 capital loss. Partnership’s 2020 taxable year as finally in each year related to Asset. Partnership has Partnership makes a timely election under determined by the Tax Court. The statement two equal partners for the 2020 tax year: M section 6226 in accordance with § 301.6226– shows F’s share of the long-term capital loss (a partnership) and N (an S corporation). For 1 with respect to the imputed underpayment adjustment for the reviewed year of $100, as the 2020 tax year, N has one shareholder, O, in the FPA for Partnership’s 2020 year and well as the $100 long-term capital loss taken who is an individual. On June 1, 2023, the does not file a petition for readjustment into account by F as part of the amended IRS mails an FPA to Partnership for under section 6234. The time to file a return modification. Accordingly, in Partnership’s 2020 year. In the FPA, the IRS petition expires on August 30, 2023. accordance with paragraph (b) of this section, determines that Asset should have been Pursuant to § 301.6226–2(b), the partnership when F computes its correction amounts for depreciated over 7 years instead of 5 years adjustments become finally determined on the first affected year (the 2020 taxable year) and adjusts the depreciation for the 2020 tax August 31, 2023. On October 12, 2023, and the intervening years (the 2021 through year to $30,000 instead of $42,000 resulting Partnership timely files with the IRS 2026 taxable years), F computes any increase in a $12,000 adjustment. This adjustment statements described in § 301.6226–2 and or decrease in chapter 1 tax for those years results in an imputed underpayment of furnishes statements to its partners reflecting using the returns for the 2020, 2021, and $4,800 ($12,000 × 40 percent). Partnership their share of the partnership adjustments as 2022 taxable years as amended during the makes a timely election under section 6226 finally determined in the FPA. The modification process and taking into account in accordance with § 301.6226–1 with respect statements to P and Q each reflect a any chapter 1 tax paid with those amended to the imputed underpayment in the FPA for partnership adjustment of $500 increase in returns. F also takes into account the interest Partnership’s 2020 year and does not file a ordinary income and a $250 increase in paid with F’s amended returns when petition for readjustment under section 6234. capital loss in accordance with § 301.6225– determining the interest under paragraph (c) The time to file a petition expires on August 3(b)(6). P takes the adjustments into account of this section that must be paid in the 30, 2023. Pursuant to § 301.6226–2(b), the under paragraph (e)(3) of this section by reporting year. partnership adjustments become finally timely filing a partnership adjustment (6) Example 6. Partnership has two equal determined on August 31, 2023. On October tracking report and furnishing a statement to partners for the 2020 tax year: M (an 12, 2023, Partnership timely files with the R. Q timely filed a partnership adjustment

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tracking report, but chooses not to furnish finally determined in the FPA. The account by the reviewed year partners statements and instead must calculate and statements to U and V each reflect a in accordance with § 301.6227–3. A pay an imputed underpayment under partnership adjustment of a $250 increase in partner may not make a request for an paragraph (e)(4) of this section as well as long-term capital gain. V timely files the administrative adjustment of a interest on the imputed underpayment adjustment tracking report but fails to furnish determined under paragraph (e)(4)(iv)(B) of statements and therefore must calculate and partnership-related item except in this section. After applying the rules set forth pay an imputed underpayment under accordance with § 301.6222–1 or if the in § 301.6225–1, Q calculates the imputed paragraph (e)(4) of this section as well as partner is doing so on behalf of the underpayment that it is required to pay of interest on the imputed underpayment partnership in the partner’s capacity as $200 ($500 adjustment to ordinary income × determined under paragraph (e)(4)(iv)(B) of the partnership representative 40 percent). Q also has one adjustment that this section. On February 3, 2025, V pays an designated under section 6223. In does not result in an imputed imputed underpayment of $43.75 (($125 × 20 addition, a partnership may not file an underpayment—the $250 increase to capital percent for the adjustments allocable to X) + × AAR solely for the purpose of changing loss. Pursuant to paragraph (e)(1) of this ($125 15 percent for the adjustments the designation of a partnership section, Q files the partnership adjustment allocable to W)) which takes into account the tracking report and pay the amounts due rate modifications approved by the IRS with representative or changing the under paragraph (e)(4) of this section by respect to Y and Z. V must also pay any appointment of a designated individual. September 15, 2024, the extended due date interest on the amount as determined in See § 301.6223–1 (regarding designation of Partnership’s return for the adjustment accordance with paragraph (e)(4)(iv)(B) of of the partnership representative). When year, 2023. Pursuant to paragraph (e)(4)(v) of this section. V must file the adjustment the partnership changes the designation this section, on its 2024 return, the year in tracking report and pay the amounts due of the partnership representative (or which Q made its payment of the imputed under paragraph (e)(4) of this section no later appointment of the designated underpayment, Q reports and allocates the than September 15, 2025, the extended due individual) in conjunction with the $250 capital loss to its shareholders for its date of Partnership’s return for the 2024 year, filing of an AAR in accordance with 2024 taxable year as a capital loss as which is the adjustment year. provided in § 301.6225–3. § 301.6223–1(e), the change in (i) Applicability date—(1) In general. designation (or appointment) is treated (9) Example 9. On its partnership return Except as provided in paragraph (i)(2) of for the 2020 tax year, Partnership reported a as occurring prior to the filing of the $1,000 long-term capital gain on the sale of this section, this section applies to AAR. For rules regarding a notice of Stock. Partnership has two equal partners for partnership taxable years beginning change to the amount of creditable the 2020 tax year: U (an individual) and V after December 31, 2017, and ending foreign tax expenditures see paragraph (a partnership). For the 2020 tax year, V has after August 12, 2018. (g) of this section. two equal partners: W (an individual) and X (2) Election under § 301.9100–22 in (b) Time for filing an AAR. An AAR (a partnership). For the 2020 tax year, X has effect. This section applies to any may only be filed by a partnership with two equal partners: Y and Z, both of which partnership taxable year beginning after respect to a partnership taxable year are C corporations. On June 1, 2023, the IRS November 2, 2015, and before January 1, after a partnership return for that mails a NOPPA to Partnership for 2018, for which a valid election under Partnership’s 2020 year proposing a $500 taxable year has been filed with the increase in the long-term capital gain from § 301.9100–22 is in effect. Internal Revenue Service (IRS). A the sale of Stock and an imputed ■ Par. 10. Section 301.6227–1 is added partnership may not file an AAR with underpayment of $200 ($500 × 40 percent). to read as follows: respect to a partnership taxable year On July 17, 2023, Partnership timely submits more than three years after the later of a request to modify the rate used in § 301.6227–1 Administrative adjustment the date the partnership return for such request by partnership. calculating the imputed underpayment under partnership taxable year was filed or the § 301.6225–2(d)(4). Partnership submits (a) In general. A partnership may file last day for filing such partnership sufficient information demonstrating that a request for an administrative return (determined without regard to $375 of the $500 adjustment is allocable to adjustment with respect to any extensions). Except as provided in individuals (50 percent of the $500 partnership-related item (as defined in adjustment allocable to U and 25 percent of § 301.6231–1(f), an AAR (including a § 301.6241–1(a)(6)(ii)) for any request filed by a partner in accordance the $500 adjustment allocable to W) and the partnership taxable year. When filing an remaining $125 is allocable to C corporations with § 301.6222–1) may not be filed for (the indirect partners Y and Z). The IRS administrative adjustment request a partnership taxable year after a notice approves the modification and the imputed (AAR), the partnership must determine of administrative proceeding with underpayment is reduced to $81.25 (($375 × whether the adjustments requested in respect to such taxable year has been 15 percent) + ($125 × 20 percent)). See the AAR result in an imputed mailed by the IRS under section 6231. § 301.6225–2(b)(3). No other modifications underpayment in accordance with (c) Form and manner for filing an are requested. On February 28, 2024, the IRS § 301.6227–2(a) for the reviewed year AAR—(1) In general. An AAR by a mails an FPA to Partnership for Partnership’s (as defined in § 301.6241–1(a)(8)). If the partnership, including any required 2020 year determining a $500 increase in the adjustments requested in the AAR result statements, forms, and schedules as long-term capital gain on the sale of Stock in an imputed underpayment, the and asserting an imputed underpayment of described in this section, must be filed $81.25 after taking into account the approved partnership must take the adjustments with the IRS in accordance with the modifications. Partnership makes a timely into account under the rules described forms, instructions, and other guidance election under section 6226 in accordance in § 301.6227–2(b) unless the prescribed by the IRS, and must be with § 301.6226–1 with respect to the partnership makes an election under signed under penalties of perjury by the imputed underpayment in the FPA for § 301.6227–2(c), in which case each partnership representative (as described Partnership’s 2020 year and does not file a reviewed year partner (as defined in in §§ 301.6223–1 and 301.6223–2). petition for readjustment under section 6234. § 301.6241–1(a)(9)) must take the (2) Contents of AAR filed with the The time to file a petition expires on May 28, adjustments into account in accordance IRS. A partnership must include the 2024. Pursuant to § 301.6226–2(b), the with § 301.6227–3. If the adjustments information described in this paragraph partnership adjustments become finally determined on May 29, 2024. On July 26, requested in the AAR are adjustments (c)(2) when filing an AAR with the IRS. 2024, Partnership timely files with the IRS described in § 301.6225–1(f)(1) that do In the case of a failure by the statements described in § 301.6226–2 and not result in an imputed underpayment partnership to provide the information furnishes statements to its partners reflecting (as determined under § 301.6227–2(a)), described in this paragraph (c)(2), the their share of the partnership adjustments as such adjustments must be taken into IRS may, but is not required to,

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invalidate an AAR or readjust any items reviewed year. If the partnership pays § 301.6227–2 Determining and accounting that were adjusted on the AAR. An AAR an imputed underpayment under for adjustments requested in an filed with the IRS must include— § 301.6227–2(b) with respect to the administrative adjustment request by the partnership. (i) The adjustments requested; adjustments requested in the AAR, the (ii) If a reviewed year partner is reviewed year partner’s share of the (a) Determining whether adjustments required to take into account the adjustments requested in the AAR only result in an imputed underpayment—(1) adjustments requested under includes any adjustments that did not Determination of an imputed § 301.6227–3, statements described in result in the imputed underpayment, as underpayment. The determination of paragraph (e) of this section, including determined under § 301.6227–2(a). whether adjustments requested in an any transmittal with respect to such administrative adjustment request statements required by forms, (ii) Adjusted partnership-related item (AAR) result in an imputed instructions, and other guidance not reported on the partnership’s return underpayment in the reviewed year (as prescribed by the IRS; and for the reviewed year. Except as defined in § 301.6241–1(a)(8)) and the (iii) Other information prescribed by provided in paragraph (e)(2)(iii) of this determination of the amount of any the IRS in forms, instructions, or other section, if the adjusted partnership- imputed underpayment is made in guidance. related item was not reported on the accordance with the rules under (d) Copy of statement furnished to partnership return for the reviewed § 301.6225–1. reviewed year partners in certain cases. year, each reviewed year partner’s share (2) Modification of imputed If a reviewed year partner is required to of the adjustments must be determined underpayment for purposes of this take into account adjustments requested in accordance with how such items section. A partnership may apply in an AAR under § 301.6227–3, the would have been allocated under rules modifications to the amount of an partnership must furnish a copy of the that apply with respect to partnership imputed underpayment determined statement described in paragraph (e) of allocations, including under the under paragraph (a)(1) of this section this section to the reviewed year partner partnership agreement. using only the provisions under to whom the statement relates in (iii) Allocation adjustments. If an § 301.6225–2(d)(3) (regarding tax- accordance with the forms, instructions adjustment involves allocation of a exempt partners), § 301.6225–2(d)(4) and other guidance prescribed by the partnership-related item to a specific (regarding modification of applicable IRS. If the partnership mails the partner or in a specific manner, tax rate), § 301.6225–2(d)(5) (regarding statement, it must mail the statement to including a reallocation of an item, the specified passive activity losses), the current or last address of the reviewed year partner’s share of the § 301.6225–2(d)(6)(ii) (regarding reviewed year partner that is known to adjustment requested in the AAR is limitations or restrictions in the the partnership. The statement must be determined in accordance with the grouping of adjustments), § 301.6225– furnished to the reviewed year partner AAR. 2(d)(7) (regarding certain qualified on the date the AAR is filed with the investment entities), § 301.6225–2(d)(9) IRS. (f) Administrative proceeding for a (regarding tax treaty modifications), or (e) Statements—(1) Contents. Each taxable year for which an AAR is filed. as provided in forms, instructions, or statement described in this paragraph Within the period described in section other guidance prescribed by the IRS (e) must include the following correct 6235, the IRS may initiate an with respect to AARs. The partnership information: administrative proceeding with respect may not modify an imputed (i) The name and TIN of the reviewed to the partnership for any partnership underpayment resulting from year partner to whom the statement is taxable year regardless of whether the adjustments requested in an AAR except being furnished; partnership filed an AAR with respect as described in this paragraph (a)(2). (ii) The current or last address of the to such taxable year and may adjust any When applying modifications to the partner that is known to the partnership; partnership-related item, including any amount of an imputed underpayment (iii) The reviewed year partner’s share partnership-related item adjusted in an under this paragraph (a)(2): of items as originally reported on AAR filed by the partnership. The (i) The partnership is not required to statements furnished to the partner amount of an imputed underpayment seek the approval from the Internal under section 6031(b) and, if applicable, determined by the partnership under Revenue Service (IRS) prior to applying section 6227; § 301.6227–2(a)(1), including any modifications to the amount of any (iv) The reviewed year partner’s share modifications determined by the imputed underpayment under of the adjustments as described under partnership under § 301.6227–2(a)(2), paragraph (a)(1) of this section reported paragraph (e)(2) of this section; may be re-determined by the IRS. on the AAR; and (v) The date the statement is (g) [Reserved] (ii) As part of the AAR filed with the furnished to the partner; IRS in accordance with forms, (vi) The partnership taxable year to (h) Applicability date—(1) In general. instructions, and other guidance which the adjustments relate; and Except as provided in paragraph (h)(2) prescribed by the IRS, the partnership (vii) Any other information required of this section, this section applies to must— by forms, instructions, and other partnership taxable years beginning (A) Notify the IRS of any guidance prescribed by the IRS. after December 31, 2017, and ending modification; (2) Determination of each partner’s after August 12, 2018. (B) Describe the effect of the share of adjustments—(i) In general. (2) Election under § 301.9100–22 in modification on the imputed Except as provided in paragraphs effect. This section applies to any underpayment; (e)(2)(ii) and (iii) of this section, each partnership taxable year beginning after (C) Provide an explanation of the reviewed year partner’s share of the November 2, 2015, and before January 1, basis for such modification; and adjustments requested in the AAR is 2018, for which a valid election under (D) Provide documentation to support determined in the same manner as each § 301.9100–22 is in effect. the partnership’s eligibility for the adjusted partnership-related item was modification. originally allocated to the reviewed year ■ Par. 11. Section 301.6227–2 is added (b) Adjustments resulting in an partner on the partnership return for the to read as follows: imputed underpayment taken into

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account by the partnership—(1) In taken into account by reviewed year § 301.6227–3 Adjustments requested in an general. Except in the case of a valid partners. In lieu of paying an imputed administrative adjustment request taken election under paragraph (c) of this underpayment under paragraph (b) of into account by reviewed year partners. section, a partnership must pay any this section, the partnership may elect (a) In general. Each reviewed year imputed underpayment (as determined to have each reviewed year partner (as partner (as defined in § 301.6241– under paragraph (a) of this section) defined in § 301.6241–1(a)(9)) take into 1(a)(9)) is required to take into account resulting from the adjustments account the adjustments requested in its share of adjustments requested in an requested in an AAR on the date the the AAR that are associated with such administrative adjustment request (AAR) that either do not result in an partnership files the AAR. For the rules imputed underpayment in accordance applicable to the partnership’s imputed underpayment (as described in with § 301.6227–3. A partnership makes expenditure for an imputed § 301.6225–1(f)(1)) or are associated an election under this paragraph (c) at underpayment, as well as any penalties with an imputed underpayment for and interest paid by the partnership the time the AAR is filed in accordance which the partnership makes an with respect to an imputed with the forms, instructions, and other election under § 301.6227–2(c). Each underpayment, see § 301.6241–4. guidance prescribed by the IRS. If the reviewed year partner receiving a (2) Penalties and interest. The IRS partnership makes a valid election in statement furnished in accordance with may impose a penalty, addition to tax, accordance with this paragraph (c), the § 301.6227–1(d) must take into account and additional amount with respect to partnership is not liable for, nor adjustments reflected in the statement any imputed underpayment determined required to pay, the imputed in the reviewed year partner’s taxable under this section in accordance with underpayment to which the election year that includes the date the statement section 6233(a)(3) (penalties determined relates. Rather, each reviewed year is furnished (reporting year) in from the reviewed year). In addition, the partner must take into account their accordance with paragraph (b) of this IRS may impose a penalty, addition to share of the adjustments requested in section. tax, and additional amount with respect the AAR that are associated with such (b) Adjustments taken into account by to a failure to pay any imputed imputed underpayment in accordance the reviewed year partner in the underpayment on the date an AAR is with § 301.6227–3. If an election is reporting year—(1) In general. Except as filed in accordance with section made under this paragraph (c) with provided in paragraph (c) of this 6233(b)(3) (penalties with respect to the respect to an imputed underpayment, section, a reviewed year partner that is adjustment year return). Interest on an modifications applied under paragraph furnished a statement described in imputed underpayment is determined (a)(2) of this section to such imputed paragraph (a) of this section must treat under chapter 67 of the Internal underpayment are disregarded and all the statement as if it were issued under Revenue Code for the period beginning section 6226(a)(2) and, on or before the on the date after the due date of the adjustments requested in the AAR that are associated with such imputed due date for the reporting year must partnership return for the reviewed year report and pay the additional reporting underpayment must be taken into (as defined in § 301.6241–1(a)(8)) year tax (as defined in § 301.6226–3(a)), account by each reviewed year partner (determined without regard to if any, determined after taking into in accordance with § 301.6227–3. extension) and ending on the date the account that partner’s share of the AAR is filed. See § 301.6233(a)–1(b). In (d) Adjustments not resulting in an adjustments requested in the AAR in the case of any failure to pay an imputed underpayment. If any accordance with § 301.6226–3. A imputed underpayment on the date the adjustments requested in an AAR are reviewed year partner may, in AAR is filed, interest is determined in adjustments that do not result in an accordance with § 301.6226–3(a), reduce accordance with section 6233(b)(2) and imputed underpayment (as determined chapter 1 tax for the reporting year § 301.6233(b)–1(c). under paragraph (a) of this section), the where the additional reporting year tax (3) Coordination with chapters 3 and partnership must furnish statements to is less than zero. For purposes of 4 of the Internal Revenue Code—(i) paragraph (b) of this section, the rule Coordination when partnership pays an each reviewed year partner and file such statements with the IRS in accordance under § 301.6226–3(c)(3) (regarding the imputed underpayment. If a partnership increased rate of interest) does not pays an imputed underpayment with § 301.6227–1. Each reviewed year partner must take into account its share apply. Nothing in this section entitles resulting from adjustments requested in any partner to a refund of tax imposed an AAR under paragraph (b)(1) of this of the adjustments that do not result in by chapter 1 of the Internal Revenue section, the rules in § 301.6241–6(b)(3) an imputed underpayment requested in Code (chapter 1 tax) to which such apply to treat the partnership as having the AAR in accordance with partner is not entitled. For instance, a paid the amount required to be withheld § 301.6227–3. partnership-partner (as defined in under chapter 3 or chapter 4 (as defined (e) Applicability date—(1) In general. § 301.6241–1(a)(7)) may not claim a in § 301.6241–6(b)(2)). Except as provided in paragraph (e)(2) refund with respect to its share of any (ii) Coordination when partnership of this section, this section applies to adjustment. elects to have adjustments taken into partnership taxable years beginning (2) Examples. The following examples account by reviewed year partners. If a after December 31, 2017, and ending illustrate the rules of paragraph (b) of partnership elects under paragraph (c) after August 12, 2018. this section. of this section to have its reviewed year partners take into account adjustments (2) Election under § 301.9100–22 in (i) Example 1. In 2022, partner A, an requested in an AAR, the rules in effect. This section applies to any individual, received a statement described in § 301.6226–2(g)(3) apply to the partnership taxable year beginning after paragraph (a) of this section from Partnership November 2, 2015, and before January 1, with respect to Partnership’s 2020 taxable partnership, and the rules in year. Both A and Partnership are calendar § 301.6226–3(f) apply to the reviewed 2018, for which a valid election under year taxpayers and A is not claiming any year partners that take into account the § 301.9100–22 is in effect. refundable tax credit in 2020. The only adjustments pursuant to § 301.6227–3. ■ Par. 12. Section 301.6227–3 is added adjustment shown on the statement is an (c) Election to have adjustments increase in ordinary loss. Taking into account resulting in an imputed underpayment to read as follows: the adjustment, A determines that his

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additional reporting year tax for 2022 (the pass-through partner must take such (xii) Any other information required reporting year) is -$100 (that is, a reduction adjustments into account under this by forms, instructions, and other of $100.) A’s chapter 1 tax for 2022 (without paragraph (c)(2) even in situations guidance prescribed by the IRS. regard to any additional reporting year tax) (4) Affected partners must take into is $150. Applying the rules in paragraph where the pass-through partner pays an (b)(1) of this section, A’s chapter 1 tax for imputed underpayment in accordance account the adjustments. A statement 2022 is reduced to $50 ($150 chapter 1 tax with § 301.6226–3(e)(4)(iii). The pass- furnished to an affected partner in without regard to the additional reporting through partner must provide the accordance with paragraph (c)(1) or (2) year tax plus -$100 additional reporting year information described in paragraph of this section is to be treated by the tax). (c)(3) of this section in lieu of the affected partner as if it were a statement (ii) Example 2. The facts are the same as information described in § 301.6226– described in paragraph (a) of this in Example 1 in paragraph (b)(2)(i) of this 3(e)(3)(iii) on the statements the pass- section. The affected partner must take section, except A’s chapter 1 tax for 2022 into account its share of the adjustments (without regard to any additional reporting through partner furnishes to its affected year tax) is $75. Applying the rules in partners (as defined in § 301.6226– reflected on such a statement in paragraph (b)(1) of this section, A’s chapter 3(e)(3)(i)). accordance with this section by treating 1 tax for 2022 is reduced by the -$100 of (3) Contents of statements. Each references to ‘‘reviewed year partner’’ as additional reporting year tax. Accordingly, statement described in paragraph (c)(1) ‘‘affected partner.’’ When taking into A’s chapter 1 tax for 2022 is -$25 ($75 or (2) of this section must include the account the adjustments as described in chapter 1 tax without regard to any following correct information— § 301.6226–3(e)(3)(iv), the rules under additional reporting year tax plus -$100 of § 301.6226–3(c)(3) (regarding the additional reporting year tax), A owes no (i) The name and taxpayer chapter 1 tax for 2022, and A may make a identification number (TIN) of the increased rate of interest) do not apply. claim for refund with respect to any partnership that filed the AAR with (d) Applicability date—(1) In general. overpayment. respect to the adjustments reflected on Except as provided in paragraph (d)(2) the statements described in paragraph of this section, this section applies to (c) Reviewed year partners that are partnership taxable years beginning pass-through partners—(1) In general. (c)(1) of this section; after December 31, 2017, and ending Except as provided in paragraph (c) of (ii) The adjustment year (as defined in § 301.6241–1(a)(1)) of the partnership after August 12, 2018. this section, if a statement described in (2) Election under § 301.9100–22 in paragraph (a) of this section (including described in paragraph (c)(3)(i) of this section; effect. This section applies to any a statement described in this paragraph partnership taxable year beginning after (c)(1)) is furnished to a reviewed year (iii) The extended due date for the return for the adjustment year of the November 2, 2015, and before January 1, partner that is a pass-through partner (as 2018, for which a valid election under defined in § 301.6241–1(a)(5)), the pass- partnership described in paragraph (c)(3)(i) of this section (as described in § 301.9100–22 is in effect. through partner must take into account ■ the adjustments reflected on that § 301.6226–3(e)(3)(ii)); Par. 13. Section 301.6231–1 is added statement in accordance with (iv) The date on which the to read as follows: § 301.6226–3(e) by treating the partnership described in paragraph § 301.6231–1 Notice of proceedings and partnership that filed the AAR as the (c)(3)(i) of this section furnished its adjustments. partnership that made an election under statements required under § 301.6227– (a) Notices to which this section § 301.6226–1. A pass-through partner 1(d); applies. In the case of any that furnishes statements in accordance (v) The name and TIN of the administrative proceeding under with § 301.6226–3(e)(3) must provide partnership that furnished the statement subchapter C of chapter 63 of the the information described in paragraph to the pass-through partner if different Internal Revenue Code (subchapter C of (c)(3) of this section in lieu of the from the partnership described in chapter 63), including an administrative information described in § 301.6226– paragraph (c)(3)(i) of this section; proceeding with respect to an 3(e)(3)(iii) on the statements the pass- (vi) The name and TIN of the pass- administrative adjustment request through partner furnishes to its partners. through partner; (AAR) filed by a partnership under A pass-through partner that computes (vii) The pass-through partner’s section 6227, the following notices must and pays an imputed underpayment in taxable year to which the adjustments be mailed to the partnership and the accordance with § 301.6226–3(e)(4)(iii) set forth in the statement described in partnership representative (as described may not apply any modifications to the paragraph (c)(1) of this section relate; in section 6223 and § 301.6223–1)— amount of imputed underpayment. For (viii) The name and TIN of the (1) Notice of any administrative purposes of this paragraph (c)(1), the affected partner to whom the statement proceeding initiated at the partnership statement furnished to the pass-through is being furnished; level with respect to an adjustment of partner by the partnership filing the (ix) The current or last address of the any partnership-related item (as defined AAR is treated as if it were a statement affected partner that is known to the in § 301.6241–1(a)(6)(ii)) for any issued under section 6226(a)(2) and pass-through partner; partnership taxable year under described in § 301.6226–2. (x) The affected partner’s share of subchapter C of chapter 63 (notice of (2) Adjustments that do not result in items as originally reported to such administrative proceeding (NAP)); an imputed underpayment. If partner under section 6031(b) and, if (2) Notice of any proposed adjustments on a statement received by applicable, section 6227, for the taxable partnership adjustment resulting from the pass-through partner under year to which the adjustments reflected an administrative proceeding under paragraph (a) or (c)(1) of this section do on the statement furnished to the pass- subchapter C of chapter 63 (notice of not result in an imputed underpayment through partner relate; proposed partnership adjustment for the pass-through partner (as (xi) The affected partner’s share of (NOPPA)); and described in § 301.6225–1(f)(1)), the partnership adjustments determined (3) Notice of any final partnership pass-through partner must take the under § 301.6227–1(e)(2) as if the adjustment resulting from an adjustments that do not result in an affected partner were the reviewed year administrative proceeding under imputed underpayment into account in partner and the partnership were the subchapter C of chapter 63 (notice of accordance with § 301.6226–3(e)(3). The pass-through partner; final partnership adjustment (FPA)).

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(b) Time for mailing notices—(1) treated as if it were never issued, and under § 301.6227–2(b), payment of the Notice of proposed partnership the withdrawn NAP or NOPPA has no imputed underpayment is due on the adjustment. A NOPPA is timely if it is effect for purposes of subchapter C of date the AAR is filed. The IRS may mailed before the expiration of the chapter 63. For instance, if the IRS assess the amount of the imputed period for making adjustments under withdraws a NAP with respect to a underpayment reflected on the AAR on section 6235(a)(1) (including any partnership taxable year, the limitation the date the AAR is filed. For interest extensions under section 6235(b) and under § 301.6222–1(c)(5) regarding with respect to an imputed any special rules under section 6235(c)). inconsistent treatment, and the underpayment, see § 301.6233(a)–1(b). (2) Notice of final partnership prohibition under section 6227(c) on (c) Limitation on assessment—(1) In adjustment. An FPA may not be mailed filing an AAR, after the mailing of a general. Except as otherwise provided earlier than 270 days after the date on NAP no longer applies with respect to by this section or subtitle F of the Code which the NOPPA is mailed unless the such taxable year. (except for subchapter B of chapter 63), partnership agrees, in writing, with the (g) Rescission of FPA. The IRS may, no assessment of an imputed Internal Revenue Service (IRS) to waive with the consent of the partnership, underpayment may be made (and no the 270-day period. See § 301.6225– rescind any FPA. An FPA that is levy or proceeding in any court for the 2(c)(3)(iii) for the effect of a waiver rescinded is not an FPA for purposes of collection of an imputed underpayment under this paragraph (b)(2) on the 270- subchapter C of chapter 63, and the may be made, begun, or prosecuted) period for requesting a modification partnership cannot bring a proceeding before— under section 6225(c). See § 301.6232– under section 6234 with respect to such (i) The close of the 90th day after the 1(d)(2) for the rules regarding a waiver FPA. day on which a notice of a final of the limitations on assessment under (h) Applicability date—(1) In general. partnership adjustment (FPA) under § 301.6232–1(c). Except as provided in paragraph (h)(2) section 6231(a)(3) was mailed; and (c) Last known address. A notice of this section, this section applies to (ii) If a petition for readjustment is described in paragraph (a) of this partnership taxable years beginning filed under section 6234 with respect to section is sufficient if mailed to the last after December 31, 2017, and ending such FPA, the decision of the court has known address of the partnership after August 12, 2018. become final. representative and the partnership (even (2) Election under § 301.9100–22 in (2) Specified similar amount. The if the partnership or partnership effect. This section applies to any limitations under paragraph (c)(1) of representative has terminated its partnership taxable year beginning after this section do not apply in the case of existence). November 2, 2015, and before January 1, a specified similar amount as defined in (d) Notice mailed to partnership 2018, for which a valid election under section 6232(f)(2). representative—(1) In general. A notice § 301.9100–22 is in effect. (d) Exceptions to restrictions on described in paragraph (a) of this ■ Par. 14. Section 301.6232–1 is added adjustments and assessments—(1) section will be treated as mailed to the to read as follows: Adjustments treated as mathematical or partnership representative if the notice clerical errors—(i) In general. A notice is mailed to the partnership § 301.6232–1 Assessment, collection, and to a partnership that, on account of a representative that is reflected in the payment of imputed underpayment. mathematical or clerical error appearing IRS records as of the date the letter is (a) In general. An imputed on the partnership return or as a result mailed. underpayment determined under of a failure by a partnership-partner (as (2) No partnership representative in subchapter C of chapter 63 of the defined in § 301.6241–1(a)(7)) to comply effect. In any case in which no Internal Revenue Code (Code) is with section 6222(a), the IRS has partnership representative designation assessed and collected in the same adjusted or will adjust partnership- is in effect in accordance with manner as if the imputed underpayment related items (as defined in § 301.6241– § 301.6223–1(f), a notice described in were a tax imposed by subtitle A of the 1(a)(6)(ii)) to correct the error or to make paragraph (a) of this section mailed to Code for the adjustment year (as defined the items consistent under section ‘‘PARTNERSHIP REPRESENTATIVE’’ at in § 301.6241–1(a)(1)) except that the 6222(a) and has assessed or will assess the last known address of the deficiency procedures under subchapter any imputed underpayment partnership satisfies the requirements of B of chapter 63 of the Code do not apply (determined in accordance with this section. to an assessment of an imputed § 301.6225–1) resulting from the (e) Restrictions on additional FPAs underpayment. Accordingly, no notice adjustment is not considered an FPA after petition filed. The IRS may mail under section 6212 is required for, and under section 6231(a)(3). A petition for more than one FPA to any partnership the restrictions under section 6213 do readjustment under section 6234 may for any partnership taxable year. not apply to, the assessment of any not be filed with respect to such notice. However, except in the case of fraud, imputed underpayment. See paragraph The limitations under section 6232(b) malfeasance, or misrepresentation of a (c) of this section for limitations on and paragraph (c) of this section do not material fact, the IRS may not mail an assessment and paragraph (d) of this apply to an assessment under this FPA to a partnership with respect to a section for exceptions to restrictions on paragraph (d)(1)(i). For the definition of partnership taxable year after the adjustments. mathematical or clerical error generally, partnership has filed a timely petition (b) Payment of the imputed see section 6213(g)(2). For application of for readjustment under section 6234 underpayment. Upon receipt of notice mathematical or clerical error in the with respect to an FPA issued with and demand from the Internal Revenue case of inconsistent treatment by a respect to such partnership taxable year. Service (IRS), an imputed partner that fails to give notice, see (f) Withdrawal of NAP or NOPPA. The underpayment must be paid by the § 301.6222–1(b). IRS may, without consent of the partnership at the place and time stated (ii) Request for abatement—(A) In partnership, withdraw any NAP or in the notice. In the case of an general. Except as provided in NOPPA. Except as described in adjustment requested in an paragraph (d)(1)(ii)(B) of this section, a § 301.6223–1(d)(2) and (e)(2), if the IRS administrative adjustment request partnership that is mailed a notice withdraws a NAP or NOPPA under this (AAR) under section 6227(b)(1) that is described in paragraph (d)(1)(i) of this paragraph (f), the NAP or NOPPA is taken into account by the partnership section may file with the IRS, within 60

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days after the date of such notice, a which the partnership is liable under which such penalty, addition to tax, or request for abatement of any assessment section 6225 with respect to such FPA additional amount is imposed. of an imputed underpayment specified cannot exceed the amount determined (c) Penalties with respect to in such notice. Upon receipt of the in such FPA. partnership adjustments for the request, the IRS must abate the (f) Applicability date—(1) In general. reviewed year—(1) In general. In assessment. Any subsequent assessment Except as provided in paragraph (f)(2) of accordance with section 6221(a), the of an imputed underpayment with this section, this section applies to applicability of any penalties, additions respect to which abatement was made is partnership taxable years beginning to tax, and additional amounts that subject to the provisions of subchapter after December 31, 2017, and ending relate to an adjustment to any C of chapter 63 of the Code, including after August 12, 2018. partnership-related item for the the limitations under paragraph (c) of (2) Election under § 301.9100–22 in reviewed year is determined at the this section. effect. This section applies to any partnership level as if the partnership (B) Adjustments with respect to partnership taxable year beginning after had been an individual subject to tax inconsistent treatment by a partnership- November 2, 2015, and before January 1, imposed by chapter 1 of the Code for the partner. If an adjustment that is the 2018, for which a valid election under reviewed year, and the imputed subject of a notice described in § 301.9100–22 is in effect. underpayment were an actual paragraph (d)(1)(i) of this section is due ■ Par. 15. Section 301.6233(a)–1 is underpayment of tax or understatement to the failure of a partnership-partner to added to read as follows: for such year. Nothing in this paragraph comply with section 6222(a), paragraph (c)(1) affects the application of any (d)(1)(ii)(A) of this section does not § 301.6233(a)–1 Interest and penalties penalty, addition to tax, or additional apply, and abatement of any assessment determined from reviewed year. amount that may apply to the specified in such notice is not available. (a) Interest and penalties with respect partnership or to any reviewed year However, prior to assessment, a to the reviewed year. Except to the partner (as defined in § 301.6241– partnership-partner that has failed to extent provided in section 6226(c), in 1(a)(9)) or to any indirect partner (as comply with section 6222(a) may the case of a partnership adjustment (as defined in § 301.6241–1(a)(4)) that is correct the inconsistency by filing an defined in § 301.6241–1(a)(6)) for a unrelated to an adjustment to a administrative adjustment request in reviewed year (as defined in partnership-related item under accordance with section 6227 or filing § 301.6241–1(a)(8)), a partnership is subchapter C of chapter 63 of the Code. an amended partnership return and liable for— Except as provided in § 301.6225–2(d), furnishing amended statements, as (1) Interest computed in accordance a partner-level defense (as described in appropriate. with paragraph (b) of this section; and § 301.6226–3(d)(3)) may not be raised in (iii) Partnerships that have an election (2) Any penalty, addition to tax, or a proceeding of the partnership. under section 6221(b) in effect. In the additional amount as provided under (2) Determination of the amount of case of a partnership-partner that has an paragraph (c) of this section. accuracy-related penalty and fraud election under section 6221(b) in effect (b) Computation of interest with penalty—(i) In general. The amount of for the reviewed year (as defined in respect to partnership adjustments for any penalty under part II of subchapter § 301.6241–1(a)(8)), any tax resulting the reviewed year—(1) Interest on an A of chapter 68 of the Code (accuracy- from an adjustment due to the imputed underpayment. The interest related or fraud penalties) that relates to partnership-partner’s failure to comply imposed on an imputed underpayment any partnership adjustment for the with section 6222(a) may be assessed resulting from partnership adjustments reviewed year is determined in with respect to the reviewed year for the reviewed year is the interest that accordance with this paragraph (c)(2). If partners (as defined in § 301.6241– would be imposed under chapter 67 of in determining the imputed 1(a)(9)) of the partnership-partner (or the Internal Revenue Code (Code) if the underpayment under § 301.6225–1 (or indirect partners of the partnership- imputed underpayment were treated as § 301.6225–2 in the case of partner, as defined in § 301.6241– an underpayment of tax for the modification), any grouping or 1(a)(4)). Such tax may be assessed in the reviewed year. The interest imposed on subgrouping contains a negative same manner as if the tax were on an imputed underpayment under adjustment (as defined in § 301.6225– account of a mathematical or clerical paragraph (b) of this section begins on 1(d)(2)(ii)) and at least one positive error appearing on the reviewed year the day after the due date of the adjustment (as defined in § 301.6225– partner’s or indirect partner’s return, partnership return (without regard to 1(d)(2)(iii)) that is subject to penalty, except that the procedures under extension) for the reviewed year and first apply the rules for allocating section 6213(b)(2) for requesting an ends on the earlier of— negative adjustments in paragraph abatement of such assessment do not (i) The date prescribed for payment (c)(2)(iii) of this section. Then, apply the apply. (as described in § 301.6232–1(b)); rules in paragraph (c)(2)(ii) of this (2) Partnership may waive limitations. (ii) The due date of the partnership section to calculate penalty amounts. If A partnership may at any time by a return (without regard to extension) for there are no negative adjustments, do signed notice in writing filed with the the adjustment year (as defined in not apply the rules in paragraph IRS waive the limitations under § 301.6241–1(a)(1)); or (c)(2)(iii) of this section and instead paragraph (c) of this section (whether or (iii) The date the imputed apply only the rules in paragraph not an FPA under section 6231(a)(3) has underpayment is fully paid. (c)(2)(ii) of this section. For all purposes been mailed by the IRS at the time of the (2) Interest on penalties with respect under paragraph (c)(2) of this section, waiver). to the reviewed year. The interest adjustments that do not result in the (e) Limit on amount of imputed imposed on any penalties, additions to imputed underpayment (as described in underpayment where no proceeding is tax, and additional amounts determined § 301.6225–1(f)) and adjustments begun. If no proceeding under section under paragraph (c) of this section is the excluded from the determination of the 6234 is begun with respect to an FPA interest that would be imposed under imputed underpayment under under section 6231(a)(3) before the close chapter 67 of the Code treating the § 301.6225–2(b)(2) are disregarded. of the 90th day after the day on which partnership return for the reviewed year (ii) Calculating the portion of an such FPA was mailed, the amount for as the return of tax with respect to imputed underpayment subject to

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penalty and penalty amounts. To (iii) Allocating negative penalty, but not below zero, in determine the portion of an imputed adjustments—(A) In general. Negative accordance with the following rules: underpayment subject to a penalty and adjustments offset positive adjustments (i) The amount of remaining negative the amount of a particular penalty, within the same grouping or, if the adjustments in the credit grouping are apply the following steps to all negative adjustment is in a subgrouping, first applied to the portion of the adjustments subject to penalty within that same subgrouping. For imputed underpayment to which no remaining after application of negative purposes of applying this paragraph penalty has been imposed, as calculated adjustments (as described in paragraph (c)(2)(iii), all adjustments to credits and in accordance with paragraph (c)(2)(iii) of this section) and to all adjustments treated as adjustments to (c)(2)(iii)(C)(3) of this section. adjustments subject to penalty credits are treated as grouped in the (ii) Any amount of negative contained in groupings or subgroupings credit grouping without regard to adjustment in the credit grouping that do not contain a negative whether the adjustments were remaining after application of paragraph adjustment. subgrouped for purposes of § 301.6225– (c)(2)(iii)(C)(2)(i) of this section is (A) For purposes of applying this 1 (or § 301.6225–2 in the case of applied to the portion of the imputed paragraph (c)(2)(ii)(A), disregard modification). Adjustments that do not underpayment to which a penalty has adjustments to credits or adjustments result in the imputed underpayment are been imposed at the lowest penalty rate treated as adjustments to credits. Total disregarded as provided in paragraph as calculated in accordance with all adjustments to which a particular (c)(2) of this section. Negative paragraph (c)(2)(ii) of this section. penalty was imposed and to which the adjustments are allocated in accordance (iii) Any amount of negative highest rate of tax in effect for the with the following rules: adjustments in the credit grouping remaining after application of paragraph reviewed year under section 1 or 11 was (1) Negative adjustments are first (c)(2)(iii)(C)(1)(ii) of this section is applied when calculating the imputed applied to offset positive adjustments to applied to the portion of the imputed underpayment. See § 301.6225– which no penalties have been imposed. underpayment to which a penalty has 1(b)(1)(iv). (2) Any amount of negative been imposed at the next highest rate in (B) Multiply the total in paragraph adjustments remaining after application ascending order of rate in accordance (c)(2)(ii)(A) of this section by the highest of paragraph (c)(2)(iii)(A)(1) of this rate of tax in effect for the reviewed year with paragraph (c)(2)(iii) of this section section are applied to offset adjustments until no negative amount remains. under section 1 or 11. to which a penalty has been imposed at (C) If the imputed underpayment was (3) Calculating the portion of the the lowest penalty rate. imputed underpayment to which no modified in accordance with (3) Any amount of negative § 301.6225–2(b)(3), repeat the steps in penalty was imposed before the adjustments remaining after application application of negative adjustments to paragraphs (c)(2)(ii)(A) and (B) of this of paragraph (c)(2)(iii)(A)(2) of this section for every tax rate applied in credits. To determine the portion of the section are applied to offset adjustments imputed underpayment that is not calculating the imputed underpayment to which a penalty has been imposed at by substituting the applicable tax rate subject to penalty for purposes of the next highest rate in ascending order paragraph (c)(2)(iii)(C)(2)(i) of this determined under § 301.6225–2(b)(3) for of rate until no amount of negative the highest rate of tax in effect for the section, apply the rules in paragraphs adjustments remain or no positive (c)(2)(ii)(A) through (E) of this section of reviewed year under section 1 or 11. adjustments to which a penalty has been (D) Total all amounts determined after this section but substitute adjustment to imposed remain. completing the steps in paragraphs which no penalty was imposed for (B) Allocation of negative adjustment (c)(2)(ii)(A) through (C) of this section. adjustments to which a particular (E) Adjust the amount calculated in within a penalty rate. The Internal penalty was imposed. paragraph (c)(2)(ii)(D) of this section by: Revenue Service (IRS) may provide (iv) Special rules—(A) Fraud (1) Increasing by the net adjustments additional guidance regarding the penalties under section 6663. If any subject to the penalty in the credit ordering or allocation of negative portion of an imputed underpayment is grouping (as described in paragraph adjustments for purposes of paragraph determined by the IRS to be attributable (c)(2)(iii)(C)(1) of this section) after (c)(2)(iii)(A) of this section where more to fraud, the entire imputed application of paragraph (c)(2)(iii)(A) of than one penalty is imposed at the same underpayment is treated as attributable this section; or penalty rate. to fraud. This paragraph (c)(2)(iv)(A) (2) Decreasing in accordance with the (C) Adjustments remaining after does not apply to any portion of the rules in paragraph (c)(2)(iii)(C)(2) of this allocation of negative adjustments—(1) imputed underpayment the partnership section by the amount of negative In general. For purposes of paragraph establishes by a preponderance of the adjustments in the credit grouping if, (c)(2)(ii) of this section, any positive evidence is not attributable to fraud. after application of paragraph adjustment to which a penalty has been (B) Substantial understatement (c)(2)(iii)(A) of this section, only imposed that has not been fully offset by penalty under section 6662(d)—(1) In negative adjustments in the credit a negative adjustment after application general. For purposes of application of grouping remain. of paragraph (c)(2)(iii)(A) of this section the penalty under section 6662(d) (3) The result after completing the is a net adjustment subject to penalty (substantial understatement of income calculation in paragraphs (c)(2)(ii)(E)(1) remaining after allocation of negative tax), the imputed underpayment is and (2) of this section is the portion of adjustments. treated as an understatement under the imputed underpayment to which the (2) Additional rules regarding section 6662(d)(2). To determine particular penalty was imposed. allocation of negative credit amounts. If, whether an imputed underpayment (F) Multiply the total calculated in after application of paragraph treated as an understatement under this paragraph (c)(2)(ii)(E) of this section by (c)(2)(iii)(A) of this section, an amount paragraph (c)(2)(iv)(B)(1) is a substantial the penalty rate applicable to the of negative adjustments remain in the understatement under section particular penalty. This is the total credit grouping, the amount of 6662(d)(1), the rules of section penalty amount for adjustments to remaining negative adjustments may 6662(d)(1)(A) apply by treating the which the particular penalty was reduce the portion of the imputed amount described in paragraph imposed. underpayment that is subject to a (c)(2)(iv)(B)(2) of this section as the tax

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required to be shown on the return for $50 (($100 × 40 percent) + $10), and the (F) Example 6. The facts are the same as the taxable year under section penalty is $10 ($50 × 20 percent). in Example 5 in paragraph (c)(2)(v)(E) of this 6662(d)(1)(A)(i). (C) Example 3. The facts are the same as section, except in addition to the in Example 2 in paragraph (c)(2)(v)(B) of this modification with respect to C’s tax-exempt (2) Amount of tax required to be section, except that there is also a negative status, Partnership requests a modification shown on the return. The amount adjustment to ordinary income of $50 that under § 301.6225–2(d)(2) (regarding amended described in this paragraph was subgrouped under § 301.6225–1 with the returns) with respect to the $100,000 of (c)(2)(iv)(B)(2) is the tax that would $100 positive adjustment to ordinary. additional income allocated to D. In result by treating the net income or loss Because the $50 negative adjustment to accordance with the rules under § 301.6225– of the partnership for the reviewed year, ordinary income was subgrouped under 2(d)(2), D files an amended return for D’s reflecting any partnership adjustments § 301.6225–1 with the $100 positive 2019 taxable year taking into account as finally determined, as taxable income adjustment to ordinary income, in $100,000 of additional ordinary income. In determining the portion of the imputed described in section 1(c) (determined addition, in accordance with § 301.6225– underpayment subject to penalty, the $50 2(d)(2)(viii), D takes into account on D’s without regard to section 1(h)). negative adjustment is applied to offset part return the 20-percent accuracy-related (C) Reportable transaction of the $100 positive adjustment to ordinary penalty for negligence or disregard of rules or understatement under section 6662A. income ($100¥$50 = $50). Accordingly, the regulations that relates to the ordinary For purposes of application of the portion of the imputed underpayment to income adjustment. D’s tax attributes for penalty under section 6662A (reportable which the 20-percent accuracy-related other taxable years are not affected. The IRS penalty applies is $30 (($50 × 40 percent) + approves the modification request. As a transaction understatement penalty), the × $10), and the penalty is $6 ($30 20 percent). result, Partnership’s total netted partnership portion of an imputed underpayment (D) Example 4. The facts are the same as attributable to an item described under adjustment under § 301.6225–1(b)(2) is in Example 3 in paragraph (c)(2)(v)(C) of this $200,000 ($400,000 less $100,000 allocable to section 6662A(b)(2) is treated as a section, except that the $300 adjustment to C and $100,000 taken into account by D). The reportable transaction understatement long-term capital gain is due to a gross imputed underpayment, after modification, is under section 6662A(b). valuation misstatement. A 40-percent $80,000 ($200,000 × 40 percent), and the (D) Reasonable cause and good faith. accuracy-related penalty under section penalty is $16,000 ($80,000 × 20 percent). 6662(a) and (h) applies to the portion of the For purposes of determining whether a (d) Applicability date—(1) In general. partnership satisfies the reasonable imputed underpayment attributable to the gross valuation misstatement. The portion of Except as provided in paragraph (d)(2) cause and good faith exception under the imputed underpayment to which the 20 of this section, this section applies to section 6664(c) or (d) with respect to a percent accuracy-related penalty applies partnership taxable years beginning penalty under section 6662, section remains $30, and the 20-percent accuracy- after December 31, 2017, and ending 6662A, or section 6663, the partnership related penalty remains $6. The portion of after August 12, 2018. is treated as the taxpayer. See § 1.6664– the imputed underpayment to which the 40- (2) Election under § 301.9100–22 in 4 of this chapter. Accordingly, the facts percent gross valuation misstatement penalty effect. This section applies to any and circumstances taken into account to applies is $120 ($300 × 40 percent), and the gross valuation misstatement penalty is $48 partnership taxable year beginning after determine whether the partnership has × November 2, 2015, and before January 1, established reasonable cause and good ($120 40 percent). The total accuracy- related penalty under section 6662(a) is $54. 2018, for which a valid election under faith are the facts and circumstances (E) Example 5. Partnership has four equal § 301.9100–22 is in effect. applicable to the partnership. partners during its 2019 taxable year: Two ■ Par. 16. Section 301.6233(b)–1 is (v) Examples. The following examples partners are partnerships, A and B; one added to read as follows: illustrate the rules of paragraph (c) of partner is a tax-exempt entity, C; and the this section. For purposes of these fourth partner is an individual, D. In an § 301.6233(b)–1 Interest and penalties with examples, each partnership has a administrative proceeding with respect to respect to the adjustment year return. calendar taxable year, and the highest Partnership’s 2019 taxable year, the IRS (a) Interest and penalties with respect tax rate in effect for all taxpayers is 40 timely mails a notice of proposed partnership to failure to pay imputed underpayment adjustment (NOPPA) to Partnership for its percent for all relevant periods. 2019 taxable year proposing a single on the date prescribed. In the case of (A) Example 1. In an administrative partnership positive adjustment to any failure to pay an imputed proceeding with respect to Partnership’s Partnership’s ordinary income by $400,000. underpayment on the date prescribed 2018 partnership return, the IRS makes a The $400,000 positive adjustment is due to for such payment (as described in positive adjustment to ordinary income of negligence or disregard of rules or regulations § 301.6232–1(b)), a partnership is liable $100. The $100 adjustment is due to under section 6662(c). A 20-percent for— negligence or disregard of rules or regulations accuracy-related penalty under section (1) Interest as determined under under section 6662(c), and a 20-percent 6662(a) and (c) applies to the portion of the paragraph (c) of this section; and accuracy-related penalty applies under imputed underpayment attributable to the (2) Any penalty, addition to tax, or section 6662(a). The IRS also makes a negligence or disregard of the rules or additional amount as determined under positive adjustment to long-term capital gain regulations. In the NOPPA, the IRS of $300, but no penalty applies with respect determines an imputed underpayment of paragraph (d) of this section. to that adjustment. These are the only $160,000 ($400,000 × 40 percent) and that the (b) Imputed underpayments to which adjustments. The portion of the imputed 20-percent penalty applies to the entire this section applies. This section applies underpayment to which the 20-percent imputed underpayment. The penalty is to the portion of an imputed penalty applies is $40 ($100 × 40 percent), $32,000 ($160,000 × 20 percent). Partnership underpayment determined by the and the penalty is $8 ($40 × 20 percent). requests modification under § 301.6225– Internal Revenue Service (IRS) under (B) Example 2. The facts are the same as 2(d)(3) (regarding tax-exempt partners) with section 6225(a)(1), or an imputed in Example 1 in paragraph (c)(2)(v)(A) of this respect to the amount of additional income underpayment resulting from section, except that the IRS makes a positive allocated to C, and the IRS approves the adjustments requested by a partnership adjustment to credits of $10. The adjustment modification request. As a result, in an administrative adjustment request to credits is due to negligence or disregard of Partnership’s total netted partnership rules or regulations under section 6662(c), adjustment under § 301.6225–1(b)(2) is under section 6227, that is not paid by and a 20-percent accuracy-related penalty $300,000 ($400,000 less $100,000 allocable to the date prescribed for payment under applies under section 6662(a). The portion of C). The imputed underpayment is $120,000 § 301.6232–1(b). the imputed underpayment to which the 20- (($300,000) × 40 percent), and the penalty is (c) Interest. Interest determined under percent accuracy-related penalty applies is $24,000 ($120,000 × 20 percent). this paragraph (c) is the interest that

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would be imposed under chapter 67 of readjustment under this section with (2) Election under § 301.9100–22 in the Internal Revenue Code (Code) by respect to any partnership adjustment effect. This section applies to any treating any unpaid amount of the may be filed in a district court of the partnership taxable year beginning after imputed underpayment as an United States or the Court of Federal November 2, 2015, and before January 1, underpayment of tax imposed for the Claims only if the partnership filing the 2018, for which a valid election under adjustment year (as defined in petition deposits with the Internal § 301.9100–22 is in effect. § 301.6241–1(a)(1)). The interest under Revenue Service (IRS), on or before the ■ Par. 18. Section 301.6235–1 is added this paragraph (c) begins on the date date the petition is filed, the amount of to read as follows: prescribed for payment (as described in (as of the date of the filing of the § 301.6232–1(b)) and ends on the date petition) any imputed underpayment (as § 301.6235–1 Period of limitations on payment of the imputed underpayment shown on the FPA) and any penalties, making adjustments. is made. additions to tax, and additional amounts (a) In general. Except as provided in (d) Penalties. If a partnership fails to with respect to such imputed section 6235(c), section 905(c), or pay an imputed underpayment by the underpayment. If there is more than one paragraph (d) of this section (regarding date prescribed for payment (as imputed underpayment reflected in the extensions), no partnership adjustment described in § 301.6232–1(b)), section FPA, the partnership must deposit the (as defined in § 301.6241–1(a)(6)) for 6651(a)(2) applies to such failure, and amount of each imputed underpayment any partnership taxable year may be any unpaid amount of the imputed to which the petition for readjustment made after the later of the date that is— underpayment is treated as if it were an relates and the amount of any penalties, (1) 3 years after the latest of— underpayment of tax for purposes of additions to tax, and additional amounts (i) The date on which the partnership part II of subchapter A of chapter 68 of with respect to each such imputed return for such taxable year was filed; the Code. For purposes of this section, underpayment. (ii) The return due date (as defined in the penalty under 6651(a)(2) is applied (c) Treatment of deposit as payment section 6241(3)) for the taxable year; or (iii) The date on which the by treating the unpaid amount of the of tax. Any amount deposited in partnership filed an administrative imputed underpayment as the unpaid accordance with paragraph (b) of this adjustment request with respect to such amount shown as tax on a return section, while deposited, will not be taxable year under section 6227; required under subchapter A of chapter treated as a payment of tax for purposes 61 of the Code. (2) The date described in paragraph of the Internal Revenue Code (Code). (b) of this section with respect to a (e) Applicability date—(1) In general. Notwithstanding the preceding Except as provided in paragraph (e)(2) request for modification; or sentence, an amount deposited in (3) The date described in paragraph of this section, this section applies to accordance with paragraph (b) of this partnership taxable years beginning (c) of this section with respect to a section will be treated as a payment of notice of proposed partnership after December 31, 2017, and ending tax for purposes of chapter 67 of the after August 12, 2018. adjustment. Code (relating to interest). Interest will (b) Modification requested under (2) Election under § 301.9100–22 in be allowed and paid in accordance with effect. This section applies to any section 6225(c)—(1) In general. For section 6611. purposes of paragraph (a)(2) of this partnership taxable year beginning after (d) Effect of decision dismissing November 2, 2015, and before January 1, section, in the case of any request for action. If an action brought under this modification of any imputed 2018, for which a valid election under section is dismissed other than by § 301.9100–22 is in effect. underpayment under section 6225(c), reason of a rescission of the FPA under the date by which the Internal Revenue ■ Par. 17. Section 301.6234–1 is added section 6231(d) and § 301.6231–1(g), the Service (IRS) may make a partnership to read as follows: decision of the court dismissing the adjustment is the date that is 270 days § 301.6234–1 Judicial review of action is considered as its decision that (plus the number of days of an partnership adjustment. the FPA is correct. extension of the period for requesting (a) In general. Within 90 days after the (e) Amount deposited may be applied modification (as described in date on which a notice of a final against assessment. If the limitations on § 301.6225–2(c)(3)(i)) agreed to by the partnership adjustment (FPA) under assessment under section 6232(b) and IRS under section 6225(c)(7) and section 6231(a)(3) with respect to any § 301.6232–1(c) no longer apply with § 301.6225–2(c)(3)(ii)) after the date on partnership taxable year is mailed, a respect to an imputed underpayment for which everything required to be partnership may file a petition for a which a deposit under paragraph (b) of submitted to the IRS pursuant to section readjustment of any partnership this section was made, the IRS may 6225(c) is so submitted. adjustment (as defined in § 301.6241– apply the amount deposited against any (2) Date on which everything is 1(a)(6)) reflected in the FPA for such such imputed underpayment that is required to be submitted—(i) In general. taxable year (without regard to whether assessed. In the case of a deposit made For purposes of paragraph (b)(1) of this an election under section 6226 has been under this section that is in an amount section, the date on which everything made with respect to any imputed in excess of the amount assessed against required to be submitted to the IRS underpayment (as defined in the partnership (excess deposit), a pursuant to section 6225(c) is so § 301.6241–1(a)(3)) reflected in such partnership may obtain a return of the submitted is the earlier of— FPA) with— excess deposit by making a request in (A) The date the period for requesting (1) The Tax Court; writing in accordance with forms, modification ends (including (2) The district court of the United instructions, or other guidance extensions) as described in § 301.6225– States for the district in which the prescribed by the IRS. 2(c)(3)(i) and (ii); or partnership’s principal place of business (f) Applicability date—(1) In general. (B) The date the period for requesting is located; or Except as provided in paragraph (f)(2) of modification expires as a result of a (3) The Court of Federal Claims. this section, this section applies to waiver of the prohibition on mailing a (b) Jurisdictional requirement for partnership taxable years beginning notice of final partnership adjustment bringing action in district court or Court after December 31, 2017, and ending (FPA) under § 301.6231–1(b)(2). See of Federal Claims. A petition for after August 12, 2018. § 301.6225–2(c)(3)(iii).

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(ii) Incomplete submission has no partnership adjustments under section than the date under paragraph (a)(1) of this effect. A determination by the IRS that 6235(a) for Partnership’s 2020 taxable year to section (December 31, 2025, as extended the information submitted as part of a December 31, 2025. In addition, on June 2, under paragraph (d) of this section) and the request for modification is incomplete 2025, the IRS mails to Partnership and PR a date under paragraph (a)(3) of this section timely NOPPA under section 6231(a)(2). (April 28, 2026), October 29, 2026 is the date has no effect on the applicability of Pursuant to § 301.6225–2(c)(3)(i), the period on which the period for making partnership paragraph (b)(2) of this section. for requesting modification expires on adjustments expires under section 6235. (c) Notice of proposed partnership February 27, 2026 (270 days after June 2, (6) Example 6. The facts are the same as adjustment. For purposes of paragraph 2025, the date the NOPPA is mailed), but PR in Example 5 in paragraph (e)(5) of this (a)(3) of this section, the date by which does not submit a request for modification on section, except PR completes its submission the IRS may make a partnership or before this date. Under paragraph (c) of of information to support a request for adjustment is the date that is 330 days this section, the date for purposes of modification on July 1, 2025, but does not paragraph (a)(3) of this section is April 28, execute a waiver pursuant to § 301.6231– (plus the number of days of an 1(b)(2). Therefore, pursuant to paragraph extension of the modification period (as 2026, the date that is 330 days from the mailing of the NOPPA. Because April 28, (b)(2) of this section, February 27, 2026, the described in § 301.6225–2(c)(3)(i)) 2026 is later than the date under paragraph date the period requesting modification agreed to by the IRS under section (a)(1) of this section (December 31, 2025, as expires, is the date on which everything 6225(c)(7) and § 301.6225–2(c)(3)(ii)) extended under paragraph (d) of this section), required to be submitted pursuant to section after the date the last notice of proposed and because no modification was requested, 6225(c) is so submitted. As a result, the 270- partnership adjustment (NOPPA) under paragraph (a)(2) of this section is not day period described in paragraph (b)(1) of section 6231(a)(2) is mailed, regardless applicable, April 28, 2026 is the date on this section expires on November 24, 2026. Because November 24, 2026 is later than the of whether modification is requested by which the period for making partnership adjustments expires under section 6235. date under paragraph (a)(1) of this section the partnership under section 6225(c). (December 31, 2025, as extended under (d) Extension by agreement. The (4) Example 4. The facts are the same as in Example 3 in paragraph (e)(3) of this paragraph (d) of this section) and the date periods described in paragraphs (a), (b), section, except that PR notifies the IRS that under paragraph (a)(3) of this section (April and (c) of this section (including any Partnership will be requesting modification. 28, 2026), November 24, 2026 is the date on extension of those periods pursuant to On January 5, 2026, PR and the IRS agree to which the period for making partnership this paragraph (d)) may be extended by extend the period for requesting modification adjustments expires under section 6235. an agreement, in writing, entered into pursuant to section 6225(c)(7) and (f) Applicability date—(1) In general. by the partnership and the IRS before § 301.6225–2(c)(3)(ii) for 45 days—from Except as provided in paragraph (f)(2) of the expiration of such period. February 27, 2026 to April 13, 2026. PR this section, this section applies to (e) Examples. The following examples submits the request for modification to the partnership taxable years beginning illustrate the rules of this section. For IRS on April 13, 2026. Therefore, the date after December 31, 2017, and ending purposes of these examples, each determined under paragraph (b) of this section is February 22, 2027, which is 270 after August 12, 2018. partnership has a calendar taxable year. days after the date everything required to be (2) Election under § 301.9100–22 in (1) Example 1. Partnership timely files its submitted was so submitted pursuant to effect. This section applies to any partnership return for the 2020 taxable year paragraph (b)(2) of this section plus the partnership taxable year beginning after on March 1, 2021. On September 1, 2023, additional 45-day extension of the period for November 2, 2015, and before January 1, Partnership files an administrative requesting modification agreed to by PR and 2018, for which a valid election under adjustment request (AAR) under section 6227 the IRS. Because February 22, 2027 is later § 301.9100–22 is in effect. with respect to its 2020 taxable year. As of than the date under paragraph (a)(1) of this ■ Par. 19. Section 301.6241–1 is added September 1, 2023, the IRS has not initiated section (December 31, 2025, as extended an administrative proceeding under under paragraph (d) of this section) and the to read as follows: subchapter C of chapter 63 of the Internal date under paragraph (a)(3) of this section § 301.6241–1 Definitions. Revenue Code with respect to Partnership’s (June 12, 2026, which is 330 days from the 2020 taxable year. Therefore, as of September date the NOPPA was mailed plus the 45-day (a) Definitions. For purposes of 1, 2023, under paragraph (a)(1) of this extension under section 6225(c)(7)), February subchapter C of chapter 63 of the section, the period for making partnership 22, 2027 is the date on which the period for Internal Revenue Code (Code) and the adjustments with respect to Partnership’s making partnership adjustments expires regulations in this part under sections 2020 taxable year expires on September 1, under section 6235. 6221 through 6241 of the Code— 2026. (5) Example 5. The facts are the same as (1) Adjustment year. The term (2) Example 2. Partnership timely files its in Example 4 in paragraph (e)(4) of this adjustment year means the partnership partnership return for the 2020 taxable year section, except that PR does not request an taxable year in which— on the due date, March 15, 2021. On extension of the period for requesting (i) In the case of an adjustment February 1, 2023, the IRS mails to modification. On February 1, 2026, PR pursuant to the decision of a court in a Partnership and the partnership submits a request for modification and PR, proceeding brought under section 6234, representative of Partnership (PR) a notice of and the IRS agree in writing to waive the administrative proceeding under section prohibition on mailing an FPA pursuant to such decision becomes final; 6231(a)(1) with respect to Partnership’s 2020 § 301.6231–1(b)(2). Pursuant to § 301.6225– (ii) In the case of an administrative taxable year. Assuming no AAR has been 2(c)(3)(iii), the period for requesting adjustment request (AAR) under section filed with respect to Partnership’s 2020 modification expires as of February 1, 2026, 6227, such AAR is filed; or taxable year and the IRS has not yet mailed rather than February 27, 2026. Accordingly, (iii) In any other case, a notice of final a NOPPA under section 6231(a)(2) with under paragraph (b)(2) of this section, the partnership adjustment is mailed under respect to Partnership’s 2020 taxable year, date on which everything required to be section 6231 or, if the partnership the period for making partnership submitted pursuant to section 6225(c) is so waives the restrictions under section adjustments for Partnership’s 2020 taxable submitted is February 1, 2026, and the 270- 6232(b) (regarding limitations on year expires on the date determined under day period described in paragraph (b)(1) of assessment), the waiver is executed by paragraph (a)(1) of this section, March 15, this section begins to run on that date. 2024. Therefore, the date for purposes of paragraph the IRS. (3) Example 3. The facts are the same as (a)(2) of this section is October 29, 2026, (2) Adjustment year partner. The term in Example 2 in paragraph (e)(2) of this which is 270 days after February 1, 2026, the adjustment year partner means any section, except that on June 1, 2023, pursuant date on which everything required to be person who held an interest in a to paragraph (d) of this section, PR signs an submitted under section 6225(c) is so partnership at any time during the agreement extending the period for making submitted. Because October 29, 2026 is later adjustment year.

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(3) Imputed underpayment. Except as partnership’s taxable year or is required (B) The character, timing, and source otherwise provided in this paragraph to be maintained in the partnership’s of the partnership’s activities; (a)(3), the term imputed underpayment books or records. Items or amounts (C) The character, timing, source, means the amount determined in relating to any transaction with, liability value, and amount of any contributions accordance with section 6225 of the of, or basis in the partnership are with to, and distributions from, the Code, § 301.6225–1, and, if applicable, respect to the partnership only if those partnership; § 301.6225–2. In the case of an election items or amounts are described in the (D) The partnership’s basis in its under section 6226, the term imputed preceding sentence. An item or amount assets, the character and type of the underpayment means the amount shown or required to be shown on a assets, and the value (or revaluation determined in accordance with return of a person other than the such as under § 1.704–1(b)(2)(iv)(f) or (s) § 301.6226–3(e)(4). In the case of an partnership (or in that person’s books of this chapter) of the assets; administrative adjustment request, the and records) that results after (E) The amount and character of term imputed underpayment means the application of the Code to a partnership- partnership liabilities and any changes amount determined in accordance with related item based upon the person’s to those liabilities from the preceding § 301.6227–2 or § 301.6227–3(c). specific facts and circumstances, tax year; (4) Indirect partner. The term indirect including an incorrect application of the (F) The category, timing, and amount partner means any person who has an Code or taking into account erroneous of the partnership’s creditable interest in a partnership through their facts and circumstances of the partner, expenditures; interest in one or more pass-through is not an item or amount with respect (G) Any item or amount resulting partners (as defined in paragraph (a)(5) to the partnership. For instance, a from a partnership termination; of this section) or through a wholly- deduction shown on the return of a (H) Any item or amount of the owned entity disregarded as separate partner that results after applying a partnership resulting from an election from its owner for Federal income tax limitation under the Code (such as under section 754; purposes. section 170(b)) at the partner level to a (I) Partnership allocations and any (5) Pass-through partner. The term partnership-related item based on the special allocations; and pass-through partner means a pass- partner’s facts and circumstances is not (J) The identity of a person as a through entity that holds an interest in an item or amount with respect to the partner in the partnership. a partnership. A pass-through entity is partnership, even though the (vi) Examples. The following a partnership required to file a return corresponding expense on the return of examples illustrate the provisions of under section 6031(a), an S corporation, the partnership is an item or amount this section. For purposes of these a trust (other than a wholly-owned trust with respect to the partnership. examples, Partnership is subject to the disregarded as separate from its owner Likewise, an amount on the return of a provisions of subchapter C of chapter 63 for Federal income tax purposes), and a partner that is after either an incorrect and all taxpayers are calendar year decedent’s estate. For purposes of this application of a limitation under the taxpayers. paragraph (a)(5), a pass-through entity is Code or based on facts and (A) Example 1. Partnership enters into a not a wholly-owned entity disregarded circumstances of the partner that are transaction with A to purchase widgets for as separate from its owner for Federal erroneous, or both (such as an incorrect $100 in taxable year 2020. Partnership pays income tax purposes. application of section 170(b)) at the A $100 for the widgets. Any deduction or expense of the Partnership for the purchase (6) Partnership adjustment—(i) In partner level to a partnership-related general. The term partnership of the widgets is an item or amount with item is not an item or amount with respect to Partnership because it is shown on adjustment means any adjustment to a respect to the partnership. Similarly, a partnership-related item and includes Partnership’s return and is relevant to partner’s adjusted basis is not with determining the liability of any person under any portion of an adjustment to a respect to the partnership because it is chapter 1 pursuant to paragraphs (a)(6)(iii) partnership-related item. an item or amount shown in the and (iv) of this section. Therefore, the (ii) Partnership-related item. The term partner’s books or records that results deduction or expense is a partnership-related partnership-related item means— item. However, the income to A resulting (A) Any item or amount with respect after application of the Code to partnership-related items taking into from the transaction with Partnership is not to the partnership (as defined in an item or amount with respect to account the facts and circumstances paragraph (a)(6)(iii) of this section) Partnership under paragraph (a)(6)(iii) of this which is relevant in determining the tax specific to that partner. section because although the amount of liability of any person under chapter 1 (iv) Relevant in determining the tax income relates to a transaction with of the Code (chapter 1) (as defined in liability of any person under chapter 1. Partnership and Partnership is required to paragraph (a)(6)(iv) of this section); For purposes of this section, an item or show a deduction or expense related to the (B) Any partner’s distributive share of amount with respect to the partnership payment to A, the amount of income to A is is relevant in determining the tax not shown or required to be shown on any such item or amount; and Partnership’s return. It is only required to be (C) Any imputed underpayment liability of any person under chapter 1 without regard to the application of shown of the return of A, a person other than determined under subchapter C of Partnership and requires determinations chapter 63 of the Code (subchapter C of subchapter C of chapter 63 and without about A’s reporting of the item. Accordingly, chapter 63). regard to whether such item or amount, the amount of income shown, or required to (iii) Item or amount with respect to or an adjustment to such item or be shown, by A on his return is not a the partnership. For purposes of amount, has an effect on the tax liability partnership-related item. paragraph (a)(6)(ii) of this section, an of any particular person under (B) Example 2. B loans Partnership $100 in item or amount is with respect to the chapter 1. Partnership’s 2020 taxable year. Partnership partnership if the item or amount is (v) Examples of partnership-related makes an interest payment to B in 2020 of items. The term partnership-related item $5. Partnership’s liability relating to the loan shown or reflected, or required to be by B to Partnership and the $5 of interest shown or reflected, on a return of the includes— expense paid by the Partnership are items or partnership under section 6031 or the (A) The character, timing, source, and amounts that are with respect to Partnership forms and instructions prescribed by the amount of the partnership’s income, because they were shown on Partnership’s Internal Revenue Service (IRS) for the gain, loss, deductions, and credits; return and are relevant in determining the

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liability of any person under chapter 1 partnership adjustment in a proceeding with (i) 60 days after the suspension ends, pursuant to paragraphs (a)(6)(iii) and (iv) of respect to D and determine and assess any for adjustments or assessments; and this section. However, the treatment of the underpayment that results from conforming (ii) 6 months after the suspension loan by B and the amount of interest income D’s treatment to the treatment of the ends, for collection. received by B are not items or amounts with contributions by Partnership and applying (2) Interaction with section 6232(b). respect to Partnership under paragraph the limit in section 170(b)(1)(A). See (a)(6)(iii) of this section because although § 301.6222–1(b). The filing of a proof of claim or request they relate to a transaction with or liability for payment (or the taking of any other of Partnership and Partnership’s treatment of (7) Partnership-partner. The term action) in a Title 11 case is not be the loan is shown on Partnership’s return, B’s partnership-partner means a treated as an action prohibited by treatment of the loan and the amount of partnership that holds an interest in section 6232(b) (regarding limitations on interest income to B are shown, or required another partnership. assessment). to be shown, on the return of B, a person (8) Reviewed year. The term reviewed (3) Suspension of the time for judicial other than Partnership and require year means the partnership taxable year review. In a Title 11 case, the running determinations about B’s reporting of the items. Accordingly, the loan as treated by B to which a partnership adjustment of the period specified in section 6234 and the amount of interest income to B is not relates. (regarding judicial review of partnership a partnership-related item. (9) Reviewed year partner. The term adjustments) is suspended during the (C) Example 3. On its partnership return reviewed year partner means any person period during which the partnership is for the 2020 tax year, Partnership reported who held an interest in a partnership at prohibited by reason of the Title 11 case $200 of non-cash charitable contributions any time during the reviewed year. from filing a petition under section related to its contribution of merchandise. (10) Tax attribute. A tax attribute is 6234, and for 60 days thereafter. Partnership has two equal partners for the anything that can affect the amount or (4) Actions not prohibited. The filing 2020 tax year: C and D, both individuals. of a petition under Title 11 does not Partnership correctly reports $100 in non- timing of a partnership-related item (as cash charitable contributions to both C and defined in paragraph (a)(6)(ii) of this prohibit the following actions: D for the 2020 taxable year. On her return for section) or that can affect the amount of (i) An administrative proceeding with the 2020 taxable year, C erroneously deducts tax due in any taxable year. Examples of respect to a partnership under the entire $100 of non-cash charitable tax attributes include, but are not subchapter C of chapter 63; contributions, even though C’s deduction for limited to, basis and holding period, as (ii) The mailing of any notice with charitable contributions would be limited by well as the character of items of income, respect to a proceeding with respect to section 170(b)(1)(A) to $50 because of C’s gain, loss, deduction, or credit and a partnership under subchapter C of income. The $100 of non-cash charitable carryovers and carrybacks of such items. chapter 63, including: contribution reported by Partnership to C is (A) A notice of administrative a partnership-related item. However, the (b) Applicability date—(1) In general. Except as provided in paragraph (b)(2) proceeding; amount of the deduction taken by C on her (B) A notice of proposed partnership return for 2020 and the amount of that of this section, this section applies to adjustment; and deduction allowed after application of the partnership taxable years beginning (C) A notice of final partnership limitation contained in section 170(b)(1)(A) after December 31, 2017, and ending adjustment; to the $100 in non-cash charitable after August 12, 2018. (iii) A demand for tax returns; contributions reported by Partnership to C is (2) Election under § 301.9100–22 in not a partnership-related item under (iv) The assessment of any tax, paragraph (a)(6)(ii) of this section because it effect. This section applies to any including the assessment of any is not with respect to the partnership. partnership taxable year beginning after imputed underpayment with respect to (D) Example 4. The facts are the same as November 2, 2015, and before January 1, a partnership; and in Example 3 in paragraph (a)(6)(vi)(C) of this 2018, for which a valid election under (v) The issuance of notice and section. On his return for the 2020 taxable § 301.9100–22 is in effect. demand for payment of an assessment year, D also deducts the entire $100 in ■ Par. 20. Section 301.6241–2 is added under subchapter C of chapter 63 (but charitable contributions but treats the charitable contributions as if they were cash to read as follows: see section 362(b)(9)(D) of Title 11 of the contributions, instead of non-cash United States Code regarding the timing § 301.6241–2 Bankruptcy of the of when a tax lien takes effect by reason contributions. D does not file a notice of partnership. inconsistent treatment under section 6222. If of such assessment). D had treated the $100 in charitable (a) Coordination between Title 11 and (b) Applicability date—(1) In general. contributions as non-cash contributions, D’s proceedings under subchapter C of Except as provided in paragraph (b)(2) deduction for the charitable contributions chapter 63—(1) In general. If a of this section, this section applies to from Partnership would have be limited by partnership is a debtor in a case under partnership taxable years beginning section 170(b)(1)(A) due to D’s income. D’s Title 11 of the United States Code (Title after December 31, 2017, and ending deduction of the $100 in charitable 11 case), the running of any period of after August 12, 2018. contributions is an item or amount shown on limitations under section 6235 with D’s return, derives from the charitable (2) Election under § 301.9100–22 in contributions reported by the partnership, respect to the time for making a effect. This section applies to any and is subject to the application of the partnership adjustment (as defined in partnership taxable year beginning after limitation under section 170(b)(1)(A). § 301.6241–1(a)(6)) and under sections November 2, 2015, and before January 1, Therefore, D’s deduction is not an item or 6501 and 6502 with respect to the 2018, for which a valid election under amount with respect to the partnership. The assessment or collection of any imputed § 301.9100–22 is in effect. charitable contribution reported by the underpayment (as defined in ■ Par. 21. Section 301.6241–3 is added partnership and its character are items or § 301.6241–1(a)(3)) determined under to read as follows: amounts with respect to the partnership subchapter C of chapter 63 of the pursuant to paragraph (a)(6)(iii) of this Internal Revenue Code (subchapter C of § 301.6241–3 Treatment where a section. An adjustment to the character of the partnership ceases to exist. contributions is a partnership adjustment. chapter 63) is suspended during the Because D’s treatment of the charitable period the Internal Revenue Service (a) Former partners take adjustments contributions is inconsistent with the (IRS) is prohibited by reason of the Title into account—(1) In general. If the treatment of that item by Partnership on its 11 case from making the adjustment, Internal Revenue Service (IRS) partnership return, the IRS may make that assessment, or collection until— determines that any partnership

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(including a partnership-partner as (i) A valid election under section 6226 (described in paragraph (d) of this defined in § 301.6241–1(a)(7)) ceases to in effect with respect to any imputed section) in accordance with paragraph exist (as defined in paragraph (b) of this underpayment (as defined in (e) of this section. section) before any partnership § 301.6241–1(a)(3)); (d) Former partners—(1) Adjustment adjustment (as defined in § 301.6241– (ii) Received a statement under year partners—(i) In general. Except as 1(a)(6)) under subchapter C of chapter section 6226(a)(2) (or § 301.6226–3(e)) described in paragraphs (d)(1)(ii) and 63 of the Internal Revenue Code and has furnished statements to its (d)(2) of this section, the term former (subchapter C of chapter 63) takes effect partners in accordance with § 301.6226– partners means, for a partnership that (as described in paragraph (c) of this 3(e)(3); or has ceased to exist, the partners of the section), the partnership adjustment is (iii) Not paid any amount required to partnership during the adjustment year taken into account by the former be paid under subchapter C of chapter (as defined in § 301.6241–1(a)(1)) that partners (as described in paragraph (d) 63. corresponds to the reviewed year for of this section) of the partnership in (3) Year in which a partnership ceases which the adjustments were made. accordance with paragraph (e) of this to exist. If a partnership terminates (ii) Partnership-partner ceases to section. under section 708(b)(1), the partnership exist. If the adjustment year partner is a (2) Partnership no longer liable for ceases to exist on the last day of the partnership-partner that the IRS has any unpaid amounts resulting from a partnership’s final taxable year. If a determined ceased to exist, the partners partnership adjustment. A partnership partnership does not have the ability to of such partnership-partner during the that ceases to exist is no longer liable for pay, the partnership ceases to exist on partnership-partner’s taxable year that any unpaid amounts resulting from a the date that the IRS makes a includes the end of the adjustment year determination under paragraph (b)(1) of partnership adjustment required to be of the partnership that is subject to a this section that the partnership ceases taken into account by a former partner proceeding under subchapter C of to exist. under this section. chapter 63 are the former partners for (4) Limitation on IRS determination purposes of this section. If the (3) Application of this section to that partnership ceases to exist. In no partnership-partner ceased to exist partnership-partners. This section event may the IRS determine that a before the partnership-partner’s taxable applies to a partnership-partner and its partnership ceases to exist with respect year that includes the end of the former partners, regardless of whether to a partnership adjustment after the adjustment year of the partnership that the partnership-partner has an election expiration of the period of limitations is subject to a proceeding under under section 6221(b) in effect for any on collection applicable to the subchapter C of chapter 63, the former relevant partnership taxable year. assessment made against the partners for purposes of this section are (b) Cease to exist defined—(1) In partnership for the amount due the partners of such partnership-partner general. If a partnership ceases to exist, resulting from such adjustment. during the last partnership taxable year the IRS will notify the partnership and (c) Partnership adjustment takes for which the a partnership return of the the former partners (as defined in effect—(1) Full payment of amounts partnership-partner under section 6031 paragraph (d) of this section), in writing, resulting from a partnership adjustment. is filed. within 30 days of such determination For purposes of this section, a (2) No adjustment year partners. If using the last known address of the partnership adjustment under there are no adjustment year partners of partnership and the former partners. A subchapter C of chapter 63 takes effect a partnership that ceases to exist, the failure by the IRS to send a notification when there is full payment of amounts term former partners means the partners under this paragraph (b)(1) to a former resulting from a partnership adjustment. of the partnership during the last partner of the partnership does not For purposes of this section, full taxable year for which a partnership invalidate the determination by the IRS payment of amounts resulting from a return under section 6031 was filed that the partnership ceases to exist. If an partnership adjustment means all with respect to such partnership. For audited partnership (as defined in amounts due under subchapter C of instance, if a partnership terminates § 301.6226–3(e)(1)) ceases to exist, the chapter 63 resulting from the under section 708(b)(1) before the IRS will also notify the partnership partnership adjustment are fully paid by adjustment year and files a final representative for the reviewed year. For the partnership. partnership return for the partnership purposes of this section, a partnership (2) Partial payment of amount due by taxable year of such partnership, the ceases to exist if the IRS makes a the partnership. If a partnership pays former partners for purposes of this determination that a partnership ceases part, but not all, of any amount due section are the partners of the to exist because: resulting from a partnership adjustment partnership during the partnership (i) The partnership terminates within before the partnership ceases to exist, taxable year for which a final the meaning of section 708(b)(1); or the former partners (as defined in partnership return is filed. (ii) The partnership does not have the paragraph (d) of this section) of the (e) Taking adjustments into account— ability to pay, in full, any amount due partnership that has ceased to exist are (1) In general. For purposes of under the provisions of subchapter C of not required to take into account any paragraph (a) of this section, a former chapter 63 for which the partnership is partnership adjustment to the extent partner of a partnership that ceases to or becomes liable. For purposes of this amounts have been paid by the exist takes a partnership adjustment into section, a partnership does not have the partnership with respect to such account as if the partnership had made ability to pay if the IRS determines that adjustment. The notification that the an election under section 6226 the amount due with respect to the IRS has determined that the partnership (regarding the alternative to payment of partnership is not collectible based on has ceased to exist will include the imputed underpayment). A former the information the IRS has at the time information regarding the portion of the partner must take into account the of such determination. partnership adjustments with respect to former partner’s share of a partnership (2) Exceptions. For purposes of this which appropriate amounts have not adjustment as set forth in the statement section, the IRS will not determine that already been paid by the partnership described in paragraph (e)(2) of this a partnership ceases to exist solely and therefore must be taken into section in accordance with § 301.6226– because the partnership has— account by the former partners 3.

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(2) Statements furnished to former payment. On September 1, 2029, the IRS any amount required to be paid under partners. If a partnership is notified by determines Partnership ceases to exist for subchapter C of chapter 63, including the IRS that the partnership has ceased purposes of this section because the any imputed underpayment (as defined to exist as described in paragraph (b)(1) Partnership does not have the ability to pay in § 301.6241–1(a)(3)), or interest, under paragraph (b)(1)(ii) of this section. of this section, the partnership must Under § 301.6241–1(a)(1), the adjustment penalties, additions to tax, or additional furnish to each former partner a year is 2025 and A and B, both individuals, amounts with respect to an imputed statement reflecting such former are the only adjustment year partners of underpayment, is treated as an partner’s share of the partnership Partnership during 2025. Accordingly, under expenditure described in section adjustment required to be taken into paragraph (d)(1) of this section, A and B are 705(a)(2)(B). account under this section and file a former partners. Therefore, A and B are (b) Applicability date—(1) In general. copy of such statement with the IRS in required to take their share of the partnership Except as provided in paragraph (b)(2) accordance with the rules under adjustments determined in the FPA into of this section, this section applies to § 301.6226–2, except that— account under paragraph (e) of this section. partnership taxable years beginning (i) The adjustments are taken into (2) Example 2. The IRS initiates a proceeding under subchapter C of chapter 63 after December 31, 2017, and ending account by the applicable former with respect to the 2020 partnership taxable after August 12, 2018. partner (as described in paragraph (d) of year of P, a partnership. G, a partnership that (2) Election under § 301.9100–22 in this section), rather than the reviewed has an election under section 6221(b) in effect. This section applies to any year partners (as defined in § 301.6241– effect for the 2020 taxable year, is a partner partnership taxable year beginning after 1(a)(9)); and of P during 2020 and for every year November 2, 2015, and before January 1, (ii) The partnership must furnish thereafter. On February 3, 2025, the IRS mails 2018, for which a valid election under statements to the former partners and P an FPA that determines partnership § 301.9100–22 is in effect. file the statements with the IRS no later adjustments that result in a single imputed ■ Par. 23. Section 301.6241–5 is added than 30 days after the date of the underpayment. P does not timely file a to read as follows: notification to the partnership that the petition under section 6234 and does not make a timely election under section 6226. IRS has determined that the partnership On May 6, 2025, the IRS mails P notice and § 301.6241–5 Extension to entities filing has ceased to exist. demand for payment of the amount due partnership returns. (3) Authority to issue statements. If resulting from the adjustments determined in (a) Entities filing a partnership return. any statements required by paragraph the FPA. P does not make a payment. On Except as described in paragraph (c) of (e) of this section are not timely September 1, 2025, the IRS determines P this section, an entity that files a furnished to a former partner and filed ceases to exist for purposes of this section partnership return for any taxable year with the IRS in accordance with because P does not have the ability to pay is subject to the provisions of paragraph (e)(2)(ii) of this section, the under paragraph (b)(1)(ii) of this section. G terminated under section 708(b)(1) on subchapter C of chapter 63 of the IRS may notify the former partner in Internal Revenue Code (subchapter C of writing of such partner’s share of the December 31, 2024. On September 1, 2025, the IRS determines that G ceased to exist in chapter 63) with respect to such taxable partnership adjustments based on the 2024 for purposes of this section in year even if it is determined that the information reasonably available to the accordance with paragraph (b)(1)(i) of this entity filing the partnership return was IRS at the time such notification is section. J and K, individuals, were the only not a partnership for such taxable year. provided. For purposes of paragraph (e) partners of G during 2024. Therefore, under Accordingly, any partnership-related of this section, a notification to a former paragraph (d)(1)(ii) of this section, J and K, item (as defined in § 301.6241– partner under this paragraph (e)(3) is the partners of G during G’s 2024 partnership 1(a)(6)(ii)) and any person holding an treated the same as a statement required taxable year, are the former partners of G for purposes of this section. Therefore, J and K interest in the entity, either directly or to be furnished and filed under indirectly, at any time during that paragraph (e)(2) of this section. are required to take into account their share of the adjustments contained in the statement taxable year are subject to the provisions (f) Examples. The following examples furnished by P to G in accordance with of subchapter C of chapter 63 for such illustrate the provisions of this section. paragraph (e) of this section. taxable year. For purposes of the examples, all (b) Partnership return filed but no partnerships and partners are calendar (g) Applicability date—(1) In general. Except as provided in paragraph (g)(2) entity found to exist. Paragraph (a) of year taxpayers and each partnership is this section also applies where a subject to the provisions of subchapter of this section, this section applies to partnership taxable years beginning partnership return is filed for a taxable C of chapter 63 of the Code (unless year, but the IRS determines that no otherwise stated). after December 31, 2017, and ending after August 12, 2018. entity existed at all for such taxable (1) Example 1. The IRS initiates a (2) Election under § 301.9100–22 in year. For purposes of applying proceeding under subchapter C of chapter 63 effect. This section applies to any paragraph (a) of this section, the with respect to the 2020 partnership taxable partnership taxable year beginning after partnership return is treated as if it were year of Partnership. During 2023, in filed by an entity. accordance with section 6235(b), Partnership November 2, 2015, and before January 1, extends the period of limitations on 2018, for which a valid election under (c) Exceptions. Paragraph (a) of this adjustments under section 6235(a) until § 301.9100–22 is in effect. section does not apply to— December 31, 2025. On February 1, 2025, the ■ Par. 22. Section 301.6241–4 is added (1) Any taxable year for which an IRS mails Partnership a notice of final to read as follows: election under section 6221(b) is in partnership adjustment (FPA) that effect, treating the return as if it were determines partnership adjustments that § 301.6241–4 Payments nondeductible. filed by a partnership for the taxable result in a single imputed underpayment. (a) Payments nondeductible. No year to which the election relates; and Partnership does not timely file a petition deduction is allowed under subtitle A of (2) Any taxable year for which a valid under section 6234 and does not make a valid election under section 6226. On June 2, the Internal Revenue Code (Code) for section 761(a) election is made 2025, the IRS mails Partnership notice and any payment required to be made by a (regarding election out of subchapter K demand for payment of the amount due partnership under subchapter C of of chapter 1 of the Internal Revenue resulting from the adjustments determined in chapter 63 of the Code (subchapter C of Code for certain unincorporated the FPA. Partnership fails to make a chapter 63). Payment by a partnership of organizations).

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(d) Applicability date—(1) In general. chapter. Partnership withheld $15 from the of income, the portion of the dividend Except as provided in paragraph (d)(2) $100 of royalty income allocable to A based income allocable to A will be disregarded in of this section, this section applies to on its incorrect belief that A is entitled to a the calculation of the total netted partnership partnership taxable years beginning reduced rate of withholding under the U.S.- adjustment to the extent that the chapter 3 Country A Income Tax Treaty. In 2020, the tax has been collected with respect to such after December 31, 2017, and ending IRS determines in an examination of income. See § 301.6225–1(b)(3). after August 12, 2018. Partnership’s Form 1042, Annual (b) Coordination with chapters 3 and (2) Election under § 301.9100–22 in Withholding Tax Return for U.S. Source effect. This section applies to any Income of Foreign Persons, that Partnership 4—(1) In general. In the case of any tax partnership taxable year beginning after should have withheld $30 instead of $15 on imposed under chapter 3 or chapter 4 November 2, 2015, and before January 1, the $100 of royalty income allocable to A that is determined with respect to a 2018, for which a valid election under because Partnership failed to obtain partnership adjustment determined § 301.9100–22 is in effect. documentation from A establishing a valid under subchapter C of chapter 63 for ■ treaty claim for a reduced rate of purposes of chapter 1, such tax is Par. 24. Section 301.6241–6 is added withholding. The tax imposed on Partnership to read as follows: determined with respect to the reviewed for its failure to withhold on that income, year (as defined in § 301.6241–1(a)(8)) however, is not a tax imposed by chapter 1. § 301.6241–6 Coordination with other and is imposed (or required to be chapters of the Internal Revenue Code. Rather, it is a tax imposed by chapter 3, which is not a partnership-related item under deducted and withheld) with respect to (a) Coordination with other § 301.6241–1(a)(6)(ii). Therefore, in the adjustment year (as defined in chapters—(1) In general. Subchapter C accordance with section 6221(a), the § 301.6241–1(a)(1)). of chapter 63 of the Internal Revenue adjustment to increase Partnership’s (2) Definitions. The following Code (subchapter C of chapter 63) only withholding tax liability by $15 is not definitions apply for purposes of this applies to tax imposed by chapter 1 of determined under subchapter C of chapter paragraph (b) and the regulations under the Internal Revenue Code (Code) and 63, and instead must be determined as part subchapter C of chapter 63. not to any tax imposed (including any of the Form 1042 examination. (i) Amount subject to withholding. amount required to be deducted or (ii) Example 2. Partnership, a partnership The term amount subject to withholding withheld) under any chapter of the Code created or organized in the United States, has two equal partners, A and B. A is a means an amount subject to other than chapter 1 of the Code nonresident alien who is a resident of withholding (as defined in § 1.1441–2(a) (chapter 1), including chapter 2, 2A, 3, Country A, and B is a U.S. citizen. In 2018, of this chapter), a withholdable payment or 4 of the Code. Accordingly, for Partnership earned $100 of U.S. source (as defined in § 1.1473–1(a) of this purposes of determining taxes imposed dividend income. Partnership was required chapter), or the allocable share of under chapters of the Code other than to report the dividend income on its 2018 effectively connected taxable income (as chapter 1, the Internal Revenue Service Form 1065, U.S. Return of Partnership computed under § 1.1446–2(b) of this (IRS) may make an adjustment to any Income, and withhold 30 percent of the gross chapter). partnership-related item (as defined in amount of the dividend income allocable to (ii) Chapter 3. The term chapter 3 § 301.6241–1(a)(6)(ii)) in a proceeding A unless Partnership had documentation that means sections 1441 through 1464 of it could rely on to establish that A was that is not under subchapter C of entitled to a reduced rate of withholding. See the Code, but does not include section chapter 63. To the extent an adjustment §§ 1.1441–1(b)(1) and 1.1441–5(b)(2)(i)(A) of 1443(b) of the Code. or determination is made under this chapter. In 2020, in an examination of (iii) Chapter 4. The term chapter 4 subchapter C of chapter 63 for purposes Partnership’s Form 1042, the IRS determines means sections 1471 through 1474 of of chapter 1 and is relevant in that Partnership earned but failed to report the Code. determining tax imposed under a the $100 of U.S. source dividend income in (3) Partnership pays an imputed chapter of the Code other than chapter 2018. The adjustment to increase underpayment. If a partnership pays an 1, such adjustment or determination Partnership’s dividend income by $100 is an imputed underpayment (as determined must be taken into account for purposes adjustment to a partnership-related item. The under § 301.6225–1(b)) and the total tax imposed on Partnership for its failure to netted partnership adjustment (as of determining such tax. withhold on that income, however, is not a (2) Examples. The following examples tax imposed by chapter 1; rather, it is a tax calculated under § 301.6225–1(b)(2)) illustrate the rules of paragraph (a) of imposed by chapter 3. Pursuant to includes a partnership adjustment to an this section as applied to cases in which § 301.6221(a)–1(a), only chapter 1 tax amount subject to withholding, the a partnership has a withholding attributable to adjustments to partnership- partnership is treated as having paid (at obligation under chapter 3 or chapter 4 related items is assessed under subchapter C the time that the imputed with respect to income that the of chapter 63. Therefore, because the tax underpayment is paid) the amount partnership earns. For purposes of these imposed with respect to the adjustment is a required to be withheld with respect to examples, each partnership is subject to chapter 3 tax, under paragraph (a)(1) of this that partnership adjustment under the provisions of subchapter C of section, the IRS may determine, assess, and chapter 3 or chapter 4 for purposes of collect chapter 3 tax attributable to an chapter 63 of the Code, and the adjustment to a partnership-related item applying §§ 1.1463–1 and 1.1474–4 of partnership and its partners are calendar without conducting a proceeding under this chapter. See § 301.6225–1(b)(3) for year taxpayers. subchapter C of chapter 63. Accordingly, the the coordination rule that applies for (i) Example 1. Partnership, a partnership IRS may determine the chapter 3 tax in the calculating an imputed underpayment created or organized in the United States, has examination of Partnership’s Form 1042 by when an adjustment is made to an two equal partners, A and B. A is a adjusting Partnership’s withholding tax amount subject to withholding for nonresident alien who is a resident of liability by an additional $15 for failing to which tax has been collected under Country A, and B is a U.S. citizen. In 2018, withhold on the $50 of dividend income chapter 3 or chapter 4. Partnership earned $200 of U.S. source allocable to A. However, the IRS must initiate (4) Partnership makes an election royalty income. Partnership was required to an administrative proceeding under under section 6226 with respect to an subchapter C of chapter 63 to make any withhold 30 percent of the gross amount of imputed underpayment—(i) In general. the royalty income allocable to A unless adjustments for purposes of chapter 1 Partnership had documentation that it could attributable to the income. If the IRS A partnership that makes an election rely on to establish that A was entitled to a subsequently initiates an administrative under § 301.6226–1 with respect to an reduced rate of withholding. See §§ 1.1441– proceeding under subchapter C of chapter 63 imputed underpayment must pay the 1(b)(1) and 1.1441–5(b)(2)(i)(A) of this and makes an adjustment to the same item amount of tax required to be withheld

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under chapter 3 or chapter 4 on the adjustment that would have been partnership must report the information amount of any adjustment set forth in subject to a reduced rate of tax in the on the return and information returns in the statement described in § 301.6226– reviewed year. For this purpose, the the manner prescribed by the IRS in 2(a) to the extent that it is an adjustment partnership may rely on documentation forms, instructions, and other guidance. to an amount subject to withholding, that the partnership possesses that is (iv) Partners subject to withholding. A and the IRS has not already collected valid with respect to the reviewed year reviewed year partner that is subject to tax attributable to the adjustment under (determined without regard to the withholding under paragraph (b)(4)(i) of chapter 3 or chapter 4. The partnership expiration after the reviewed year of any this section must follow the rules under must pay the amount due under this validity period prescribed in § 1.1441– § 301.6226–3(f). paragraph (b)(4)(i) on or before the due 1(e)(4)(ii), § 1.1446–1(c)(2)(iv)(A), or date of the partnership return for the § 1.1471–3(c)(6)(ii) of this chapter), or (c) Applicability date—(1) In general. adjustment year (without regard to new documentation that the partnership Except as provided in paragraph (c)(2) extension), and must make the payment obtains from the reviewed year partner of this section, this section applies to in the manner prescribed by the IRS in that includes a signed affidavit stating partnership taxable years beginning forms, instructions, and other guidance. that the information and representations after December 31, 2017, and ending For the rules governing partners subject associated with the documentation are after August 12, 2018. to the taxes imposed by chapters 3 and accurate with respect to the reviewed (2) Election under § 301.9100–22 in 4 when the partner receives a statement year. effect. This section applies to any under § 301.6226–2, see § 301.6226–3(f). (iii) Reporting requirements. A partnership taxable year beginning after partnership required to pay tax under See § 301.6226–3(e)(3)(v) for the November 2, 2015, and before January 1, paragraph (b)(4)(i) of this section must application of the rules of this 2018, for which a valid election under file the appropriate return and issue paragraph (b)(4) to pass-through § 301.9100–22 is in effect. partners (as defined in § 301.6241– information returns as required by 1(a)(5)). regulations under chapter 3 or chapter Kirsten Wielobob, (ii) Reduced rate of tax. A partnership 4. For return and information return Deputy Commissioner for Services and may reduce the amount of tax it is requirements, see §§ 1.1446–3(d)(1)(iii); Enforcement. required to pay under paragraph (b)(4)(i) 1.1461–1(b), (c); and 1.1474–1(c), (d) of Approved: December 17, 2018. of this section to the extent that it can this chapter. The partnership must file associate valid documentation from a the return and issue information returns David J. Kautter, reviewed year partner pursuant to the for the year that includes the date on Assistant Secretary of the Treasury (Tax regulations under chapter 3 or chapter which the partnership pays the tax Policy). 4 (other than pursuant to § 1.1446–6 of required to be withheld under [FR Doc. 2018–28140 Filed 2–21–19; 11:15 am] this chapter) with the portion of the paragraph (b)(4)(i) of this section. The BILLING CODE 4830–01–P

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Part III

Department of Commerce

National Oceanic and Atmospheric Administration 50 CFR Part 219 Taking and Importing Marine Mammals; Taking Marine Mammals Incidental to Southeast Fisheries Science Center and Texas Parks and Wildlife Department Fisheries Research; Proposed Rule

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DEPARTMENT OF COMMERCE Protected Resources, National Marine active acoustic survey sources. TPWD Fisheries Service, 1315 East-West has requested take of dolphins from four National Oceanic and Atmospheric Highway, Silver Spring, MD 20910. stocks, by mortality or serious injury, Administration Instructions: Comments sent by any incidental to gillnet fishing in Texas other method, to any other address or bays. For both applicants, the 50 CFR Part 219 individual, or received after the end of regulations would be valid from 2018 to [Docket No. 161109999–8999–01] the comment period, may not be 2023. considered by NMFS. All comments Legal Authority for the Proposed Action RIN 0648–BG44 received are a part of the public record and will generally be posted for public Section 101(a)(5)(A) of the MMPA (16 Taking and Importing Marine viewing on www.regulations.gov U.S.C. 1371(a)(5)(A)) directs the Mammals; Taking Marine Mammals without change. All personal identifying Secretary of Commerce to allow, upon Incidental to Southeast Fisheries information (e.g., name, address), request, the incidental, but not Science Center and Texas Parks and confidential business information, or intentional taking of small numbers of Wildlife Department Fisheries otherwise sensitive information marine mammals by U.S. citizens who Research submitted voluntarily by the sender will engage in a specified activity (other than commercial fishing) within a specified AGENCY: National Marine Fisheries be publicly accessible. NMFS will Service (NMFS), National Oceanic and accept anonymous comments (enter geographical region for up to five years if, after notice and public comment, the Atmospheric Administration (NOAA), ‘‘N/A’’ in the required fields if you wish agency makes certain findings and Commerce. to remain anonymous). Attachments to electronic comments will be accepted in issues regulations that set forth ACTION: Proposed rule; request for permissible methods of taking pursuant comments. Microsoft Word, Excel, or Adobe PDF file formats only. to that activity, as well as monitoring SUMMARY: NMFS’ Office of Protected and reporting requirements. FOR FURTHER INFORMATION CONTACT: Section 101(a)(5)(A) of the MMPA and Resources has received a request from Jaclyn Daly, Office of Protected NMFS’ Southeast Fisheries Science the implementing regulations at 50 CFR Resources, NMFS, (301) 427–8401. part 216, subpart I provide the legal Center (SEFSC) for authorization to take Electronic copies of the application and marine mammals incidental to fisheries basis for issuing this proposed rule supporting documents, as well as a list containing five-year regulations and research conducted in the Atlantic of the references cited in this document, Ocean along the southeastern U.S. coast Letters of Authorization. As directed by may be obtained online at: this legal authority, this proposed rule and select estuaries, the Gulf of Mexico www.nmfs.noaa.gov/pr/permits/ and select estuaries, and the Caribbean contains mitigation, monitoring, and incidental/research.htm. In case of reporting requirements. Sea over the course of five years from problems accessing these documents, the date of issuance. We have also please call the contact listed above. Summary of Major Provisions Within received a request from the Texas Parks SUPPLEMENTARY INFORMATION: the Proposed Regulations and Wildlife Department (TPWD) for Following is a summary of the major authorization to take marine mammals Purpose and Need for Regulatory provisions for the SEFSC within the incidental to fisheries research in Texas Action proposed rulemaking. The SEFSC is bay systems. Pursuant to the Marine This proposed rule, to be issued required to: Mammal Protection Act (MMPA), NMFS under the authority of the MMPA (16 • Delay setting or haul in gear if is requesting comments on its proposal U.S.C. 1361 et seq.), establishes a marine mammal interaction may occur. to issue regulations to the SEFSC and, framework for authorizing the take of • Monitor prior to and during sets for separately, TPWD, to incidentally take marine mammals incidental to fisheries- signs of potential marine mammal marine mammals during the specified independent research conducted by the interaction. • activities. NMFS will consider public SEFSC (in the Atlantic Ocean and Implement the ‘‘move-on rule’’ comments prior to making any final associated estuaries, Gulf of Mexico and mitigation strategy during select surveys decision on the issuance of the associated estuaries, and Caribbean Sea) (note: this measure does not apply to requested MMPA authorizations and bottlenose dolphins). and TPWD (in Texas bays and • agency responses will be summarized in estuaries). SEFSC and TPWD fisheries Limit gear set times (varies based on the final notice of our decision. research has the potential to take marine gear type). • Haul gear immediately if marine DATES: Comments and information must mammals due to possible physical mammals may interact with gear. be received no later than March 29, interaction with fishing gear (e.g., • 2019. Utilize dedicated marine mammal trawls, gillnets, hook-and-line gear) observations during select surveys. ADDRESSES: You may submit comments andexposure to noise generated by • Prohibit chumming. on this document, identified by NOAA– SEFSC sonar devices (e.g., • Continue investigation on the NMFS–2019–0016, by any of the echosounders, side-scan sonar). The effectiveness of modifying lazy lines to following methods: SEFSC submitted an application to reduce bottlenose dolphin entanglement • Electronic submission: Submit all NMFS requesting five-year regulations risk. electronic public comments via the and a letter of authorization (LOA) to • Establish and convene the South Federal e-Rulemaking Portal. Go to take multiple species and stocks of Carolina Department of Natural www.regulations.gov/#!docket marine mammals in the three specified Resources (SCDNR) Working Group to Detail;D=NOAA-NMFS-2019-0016, click research areas (Atlantic, Gulf of Mexico, better understand bottlenose dolphin the ‘‘Comment Now!’’ icon, complete and Caribbean). The SEFSC has entanglement events and apply effective the required fields, and enter or attach requested take, by mortality, serious mitigation strategies. your comments. injury, and Level A harassment, Following is a summary of the major • Mail: Submit written comments to incidental to the use of various types of provisions for the TPWD within the Jolie Harrison, Chief, Permits and fisheries research gear and Level B proposed rulemaking. The TPWD is Conservation Division, Office of harassment incidental to the use of required to:

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• Set only new or fully repaired gill the potential to disturb a marine mortality, serious injury, and Level A nets thereby eliminating holes. mammal or marine mammal stock in the harassment (hereafter referred as ‘‘M/SI’’ • Set gillnets with minimal slack and wild by causing disruption of behavioral assuming worst case scenario) and 34 a short marker buoy attached to the patterns, including, but not limited to, species of marine mammals by Level B deep end of the net. migration, breathing, nursing, breeding, harassment. • Conduct dedicated marine mammal feeding, or sheltering (Level B On July 29, 2015, NMFS received an observations at least 15 minutes prior to harassment). application from TPWD requesting setting nets and avoid setting nets if authorization for take of marine National Environmental Policy Act dolphins are observed at or approaching mammals incidental to fishery- the sampling station. To comply with the National independent monitoring activities in • Minimize soak time by utilizing the Environmental Policy Act of 1969 Texas. On January 6, 2017 (82 FR 1721), ‘‘last out/first in’’ strategy for gillnets set (NEPA; 42 U.S.C. 4321 et seq.) and we published a notice of receipt of the in grids where marine mammals have NOAA Administrative Order (NAO) TPWD’s application in the Federal been encountered within the last 5 216–6A, NMFS must review our Register, requesting comments and years. proposed action (i.e., the issuance of an information related to the TPWD’s • Avoid fishing grids where dolphins incidental harassment authorization) request for thirty days. We received have interacted with gear on more than with respect to potential impacts on the comments from the Marine Mammal one occasion or where multiple adjacent human environment. Commission and the Texas Chapter of grids have had at least one dolphin Accordingly, NMFS is preparing an the Coastal Conservation Association encounter. Environmental Assessment (EA) to which we considered in the • Modify gillnets to avoid more than consider the environmental impacts development of this proposed rule and a 4 inch (in.) gap between float/lead line associated with the issuance of the are available on the internet at: https:// and net when net is set. proposed regulations to SEFSC and www.fisheries.noaa.gov/permit/ TPWD. NMFS’ Draft Programmatic Background incidental-take-authorizations-under- Environmental Assessment (PEA) for marine-mammal-protection-act. In Sections 101(a)(5)(A) and (D) of the Fisheries and Ecosystem Research response to comments, TPWD submitted MMPA (16 U.S.C. 1361 et seq.) direct Conducted and Funded by the a subsequent application on May 11, the Secretary of Commerce (as delegated Southeast Fisheries Science Center was 2017, which we deemed adequate and to NMFS) to allow, upon request, the made available for public comment from complete. incidental, but not intentional, taking of April 20 through May 20, 2016 (81 FR small numbers of marine mammals by 23276). NMFS is modifying the draft EA Description of the Specified Activity U.S. citizens who engage in a specified to include TPWD gillnet fishing. We SEFSC Overview activity (other than commercial fishing) will review all comments submitted in within a specified geographical region if response to this notice as we complete The SEFSC is the research arm of certain findings are made and either the NEPA process, prior to making a NMFS in the Southeast Region. The regulations are issued or, if the taking is final decision on the incidental take SEFSC plans, develops, and manages a limited to harassment, a notice of a authorization request. multidisciplinary program of basic and proposed authorization is provided to applied research to generate the Summary of Request the public for review. information necessary for the An authorization for incidental On May 4, 2015, NMFS Office of conservation and management of the takings shall be granted if NMFS finds Protected Resources (OPR) received an region’s living marine resources, that the taking will have a negligible application from the SEFSC for a including the region’s marine and impact on the species or stock(s), will rulemaking and associated 5-year Letter anadromous fish and invertebrate not have an unmitigable adverse impact of Authorization (LOA) to take marine populations to ensure they remain at on the availability of the species or mammals incidental to fisheries sustainable and healthy levels. The stock(s) for subsistence uses (where research activities conducted by the SEFSC collects a wide array of relevant), and if the permissible SEFSC and 18 cooperating research information necessary to evaluate the methods of taking and requirements partners in the Atlantic Ocean Research status of exploited fishery resources and pertaining to the mitigation, monitoring Area (ARA), Gulf of Mexico Research the marine environment from fishery and reporting of such takings are set Area (GOMRA), and Caribbean Research independent (i.e., non-commercial or forth. Area (CRA). The SEFSC submitted a recreational fishing) platforms. Surveys NMFS has defined ‘‘negligible revised draft in October 2015, followed are conducted from NOAA-owned and impact’’ in 50 CFR 216.103 as an impact by another revision on April 6, 2016, operated vessels, NOAA chartered resulting from the specified activity that which we deemed adequate and vessels, or research partner-owned or cannot be reasonably expected to, and is complete. On April 22, 2016 (81 FR chartered vessels in the state and not reasonably likely to, adversely affect 23677), we published a notice of receipt Federal waters of the Atlantic Ocean the species or stock through effects on of the SEFSC’s application in the south of Virginia, Gulf of Mexico, and annual rates of recruitment or survival. Federal Register, requesting comments Caribbean Sea. All work will occur The MMPA states that the term ‘‘take’’ and information related to the SEFSC’s within the Exclusive Economic Zone means to harass, hunt, capture, kill or request for thirty days. We received (EEZ) except two surveys which may attempt to harass, hunt, capture, or kill joint comments from The Humane occur outside the EEZ. any marine mammal. Society of the United States and Whale The SEFSC plans to administer, fund, Except with respect to certain and Dolphin Conservation, which we or conduct 74 fishery-independent activities not pertinent here, the MMPA considered in development of this survey programs over the five-year defines ‘‘harassment’’ as any act of proposed rule and are available on the period the proposed regulations would pursuit, torment, or annoyance which (i) internet at: www.nmfs.noaa.gov/pr/ be effective (see Table 1–1 in the has the potential to injure a marine permits/incidental/research.htm. The SEFSC’s application). The SEFSC works mammal or marine mammal stock in the SEFSC request is for the take of 15 with 18 Federal, state, or academic wild (Level A harassment); or (ii) has species of marine mammals by partners to conduct these surveys (see

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Table 1–1 in SEFSC’s application for a monitoring program to assess the concerning the geology, oceanography, list of cooperating research partners). Of relative abundance and size of finfish and physical environment influencing the 74 surveys, only 38 involve gear and and shellfish in ten Texas bay systems species distribution within each of the equipment with the potential to take using gillnets set perpendicular to the research areas can be found in Chapter marine mammals. Gear types include shoreline. Gill nets are set overnight 3 of the Draft PEA. towed trawl nets fished at various levels during each spring and fall season for a Atlantic Research Area in the water column, seine nets, traps, total of four weeks per year. Bottlenose longline and other hook and line gear. dolphins have the potential to become The ARA constitutes more than Surveys using any type of seine net (e.g., entangled in gillnet gear which can 530,000 square miles (mi2) from North gillnets), trawl net, or hook and line result in M/SI harassment. Carolina to Florida. Three key features (e.g., longlines) have the potential for of the ARA include the NE LME Specified Geographic Region—SEFSC marine mammal interaction (e.g., (however SEFSC research is only entanglement, hooking) resulting in M/ The SEFSC conducts research in three conducted south of Virginia), SE LME, SI harassment. In addition, the SEFSC research areas: The Atlantic Ocean from and Gulf Stream. The NE LME conducts hydrographic, oceanographic, North Carolina to Florida and associated encompasses approximately 115,831 and meteorological sampling concurrent estuaries (ARA), the Gulf of Mexico and mi2, and is structurally complex, with with many of these surveys which associated estuaries (GOMRA), and the marked temperature changes, winds, requires the use of active acoustic Caribbean around Puerto Rico and the river runoff, estuarine exchanges, tides devices (e.g., side-scan sonar, US Virgin Islands (CRA). Research and complex circulation regimes. The echosounders). These active sonars surveys occur both inside and outside Shelf-Slope Front is associated with a result in elevated sound levels in the the U.S. Exclusive Economic Zone southward flow of cold, fresh water water column, resulting in the potential (EEZ), and sometimes span across from the Labrador Sea. The Mid-Shelf to behaviorally disturb marine mammals multiple ecological, physical, and Front follows the 50-m isobath (Ullman resulting in Level B harassment. political boundaries (see Figure1–2 in and Cornillon 1999). The Nantucket Many SEFSC surveys only occur at the SEFSC’s application for map). With Shoals Front hugs the namesake bank/ certain times of the year to align with respect to gear, Appendix B in the shaols along 20–30-m isobaths. The the target species and age class being SEFSC Draft Programmatic Wilkinson Basin Front and Jordan Basin researched (see Table 1–1 in SEFSC’s Environmental Assessment (PEA) Front separate deep basins from Georges application); however, in general, the includes a table and figures showing the Bank and Browns Bank (Mavor and SEFSC conducts some type of sampling spatial and temporal distribution of Bisagni 2001). The SE LME extends year round in various locations. Specific fishing gears used during SEFSC from the Straits of Florida to Cape dates and duration of individual surveys research. Hatteras, North Carolina in the Atlantic are inherently uncertain because they The three research areas fully or Ocean. It is characterized by a temperate are based on congressional funding partially encompass four Large Marine climate and has a surface area of about levels, weather conditions, and ship Ecosystems (LMEs): The Northeast U.S. 300,000 km2, of which 2.44 percent is contingencies. For example, some Continental Shelf LME (NE LME), the protected. It contains 0.27 percent of the surveys are only conducted every two or Southeast U.S. Continental Shelf LME world’s coral reefs and 18 estuaries and three years or when funding is available. (SE LME), the Gulf of Mexico LME, river systems. These estuarine and river Timing of the surveys is a key element (GOM LME), and the Caribbean Sea systems, such as the Albemarle-Pamlico of their design. Oceanic and LME (CS LME). LMEs are large areas of Sound (the second largest estuary in the atmospheric conditions, as well as ship coastal ocean space, generally include nation) contain nearshore and barrier contingencies, often dictate survey greater than 200,000 square kilometers islands, fresh and estuarine waters, and schedules even for routinely-conducted (km2) of ocean surface area and are extensive coastal marshes that provide surveys. In addition, cooperative located in coastal waters where primary unique habitats for living marine research is designed to provide productivity is typically higher than in resources, including marine mammals flexibility on a yearly basis in order to open ocean areas. LME physical (Aquarone 2009). Adjacent to the SE address issues as they arise. Some boundaries are based on four ecological LME is the warm, saline, northward cooperative research projects last criteria: bathymetry, hydrography, flowing Gulf Stream which is bounded multiple years or may continue with productivity, and trophic relationships. by two fronts; the inshore Gulf Stream modifications. Other projects only last NOAA has implemented a management Front and the offshore Gulf Stream one year and are not continued. Most approach designed to improve the long- Front (see Figure 2–2). The inshore Gulf cooperative research projects go through term sustainability of LMEs and their Stream Front extends over the upper an annual competitive selection process resources by using practices that focus continental slope and shelf break, to determine which projects should be on ensuring the sustainability of the approximately aligned with the 50- funded based on proposals developed productive potential for ecosystem meter isobath (Atkinson and Menzel by many independent researchers and goods and services. Figure 2–1 in the 1985), while the offshore Gulf Stream fishing industry participants. The exact SEFSC’s application shows the location Front runs parallel to it approximately location of survey effort also varies year and boundaries of the three research 100 kilometers offshore. The Gulf to year (albeit in the same general area) areas with respect to LME boundaries. Stream forms a semi-permanent offshore because they are often based on We note here that, while the SEFSC deflection near a deepwater bank randomized sampling designs. Year- specified geographical region extends southeast of Charleston, South Carolina, round, in all research areas, there is one outside of the U.S. EEZ, into the called the ‘Charleston Bump’ at 31.5 or more than one survey planned that Mexican EEZ (not including Mexican degrees north. The Mid-Shelf Front is has the potential to take marine territorial waters), the MMPA’s aligned approximately with the 35-to-40 mammals. authority does not extend into foreign meter isobaths. Other shelf fronts territorial waters. The following separate a mixture of water masses TPWD Overview provides a brief introduction to the formed by wintertime cold air TPWD conducts a long-term characteristics of each research area. outbreaks, river discharge, tidal mixing standardized fishery-independent Additional descriptive material and wind-induced coastal upwelling

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(Pietrafesa et al. 1985, Belkin et al. Caribbean Sea through the passages provide management information to 2009). between the Lesser Antilles islands. support national and regional programs Run-off from two of the largest river of NMFS and to respond to the needs of Gulf of Mexico Research Area systems in the world, the Amazon and Regional Fishery Management Councils The GOMRA encompasses more than the Orinoco, as well as numerous other (FMCs), interstate and international 800,000 mi2. The SEFSC conducts large rivers, dominates the north coast fishery commissions, Fishery fisheries research in portions of the of South America (Muller-Karger 1993). Development Foundations, government GOM LME, a deep marginal sea Unlike the ARA and GOMRA, the agencies, and the general public. SEFSC bordered by Cuba, Mexico, and the U.S. SEFSC does not conduct research in develops the scientific information It is the largest semi-enclosed coastal estuarine waters within the CRA. required for fishery resource sea of the western Atlantic, conservation, fishery development and TPWD Specified Geographic Area encompassing more than 1.5 million utilization, habitat conservation, and 2 km , of which 1.57 percent is protected, TPWD conducts fisheries research protection of marine mammals and as well as 0.49 percent of the world’s using gillnets in ten Texas bay systems: endangered marine species. Research is coral reefs and 0.02 percent of the Laguna Madre, Corpus Christi Bay, pursued to address specific needs in world’s sea mounts (Sea Around Us Aransas Bay, San Antonio Bay, population dynamics, fishery biology 2007). The continental shelf is very Matagorda Bay, East Matagorda Bay, and economics, engineering and gear extensive, comprising about 30 percent Cedar Lakes, West Bay, Galveston Bay, development, and protected species of the total area and is topographically and Sabine Lake (see Figure 1 and 2 in biology. Specifically, research includes very diverse (Heileman and Rabalais TPWD’s application). These systems are monitoring fish stock recruitment, 2009). Oceanic water enters this LME wide and shallow with little tidal abundance, survival and biological from the Yucatan channel and exits elevation change. rates, geographic distribution of species through the Straits of Florida, creating Detailed Description of Activities and stocks, ecosystem process changes, the Loop Current, a major and marine ecological research. oceanographic feature and part of the SEFSC Gulf Stream System (Lohrenz et al. To carry out this research, the SEFSC 1999) (see Figure 2–4). The LME is The Federal government has a trust proposes to administer or conduct 74 strongly influenced by freshwater input responsibility to protect living marine survey programs during the 5-year from rivers, particularly the Mississippi- resources in waters of the U.S., also period the proposed regulations would Atchafalaya, which accounts for about referred to as Federal waters. These be effective; however, only 44 surveys two-thirds of the flows into the Gulf waters generally lie 3 to 200 nautical have the potential to take marine (Richards & McGowan 1989) while miles (nm) from the shoreline. Those mammals from gear interaction or freshwater discharges from the waters 3–12 nm offshore comprise acoustic harassment. Surveys would be Mississippi River estuary and rivers of territorial waters and those 12-to-200 carried out by SEFSC scientists alone or the Florida Panhandle contribute to the nm offshore comprise the Exclusive in combination with Federal, state, or development and maintenance of 6 Economic Zone (EEZ), except where academic partners while some surveys major oceanic fronts. Similar to the other nations have adjacent territorial would be carried out solely by ARA, the GOMRA includes forty-seven claims. NOAA also conducts research to cooperating research partners. Surveys major estuaries, many of which support foster resource protection in state waters not conducted by SEFSC staff are numerous recreational and commercial (i.e., estuaries and oceanic waters with included here because they are funded fisheries and are home to resident 3 nm of shore). The U.S. government or have received other support (e.g., bottlenose dolphin stocks. has also entered into a number of gear) by the SEFSC. SEFSC scientists international agreements and treaties conduct fishery-independent research Caribbean Research Area related to the management of living onboard NOAA-owned and operated The CRA is the smallest of the SEFSC marine resources in international waters vessels or chartered vessels while research areas (approximately 400,000 outside of the U.S. EEZ (i.e., the high partners conduct research aboard mi2) and includes portions of the CS seas). To carry out its responsibilities NOAA, their own or chartered vessels. LME. The CS LME is a tropic sea over Federal and international waters, Table 1 provides a summary of annual bounded by North America (South Congress has enacted several statutes projects including survey name, entity Florida), Central and South America, authorizing certain Federal agencies to conducting the survey, location, gear and the Antilles chain of islands. The administer programs to manage and type, and effort. The information LME has a surface area of about 3.3 protect living marine resources. Among presented here augments the more million km2, of which 3.89 percent is these Federal agencies, NOAA has the detailed table included in the SEFSC’s protected (Heileman and Mahon 2009). primary responsibility for protecting application. In the subsequent section, It contains 7.09 percent of the world’s marine finfish and shellfish species and we describe relevant active acoustic coral reefs and 1.35 percent of the their habitats. Within NOAA, NMFS has devices, which are commonly used in world’s sea mounts. The average depth been delegated primary responsibility SEFSC survey activities. Appendix A of is 2,200 meters, with the Cayman for the science-based management, the SEFSC’s application contains Trench being the deepest part at 7,100 conservation, and protection of living detailed descriptions, pictures, and meters. Most of the Caribbean islands marine resources. diagrams of all research gear and vessels are influenced by the nutrient-poor The SEFSC conducts multi- used by the SEFSC and partners under North Equatorial Current that enters the disciplinary research programs to this proposed rulemaking.

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TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

Gulf of Mexico Research Area

HMS—GOM Shark SEFSC—FL Panhandle Annual Apr–Oct, 30 DAS, USCG Class I: R/V Set gillnet ...... SEFSC—16–20 sets/ Pupping & Nursery Sur- in St. Andrew Bay and (approximately 4 days/ Mokarran, R/V Pristis. month, up to 120 sets vey (GULFSPAN), St. Joseph Bay, 1–10 month), daytime oper- total. (SEFSC, USM/GCRL, m depths. ations only. UWF, FSU/CML) 1 * UWF is inactive. Mississippi Sound, 1–9 m Annual Apr–Oct, 8 DAS USCG Class I: Small Set gillnet ...... 3 sets/month, 21 sets depths. (1/month), daytime op- vessel. total. erations only. Perdido Bay, Pensacola Annual May–Sep, 10 USCG Class I: State ves- Set gillnet ...... 10 sets/month, 50 sets Bay, Choctawhatchee DAS (2/month), day- sel. total. Bay, and Santa Rosa time operations only. Sound, 1.5–6 m depths. Northwest FL state Annual ...... USCG Class I: R/V Set gillnet ...... 74 sets/yr total. waters, 0.7–7 m Naucrates. depths. (A) Apalachee Bay ...... (A) Jan–Dec, 12 DAS (1/ (A) 24 sets. month). (B) Alligator Pt.-Anclote (B) June & July, 20 DAS, (B) 50 sets. Keys. daytime operations Bottom longline. 74 sets/yr total. only. (A) 24 total. (B) 50 total. State waters of south- Annual May–Sep, 15 USCG Class I: State ves- Set gillnet ...... 16 sets/month (within two west FL within Pine Is- DAS, daytime oper- sel. designated 10 km 2 land Sound in the ations only. grids), 80 sets total. Charlotte Harbor estu- ary. Depth ranges 0.6– 4.6 m depth. IJA Coastal Finfish Gillnet Mississippi Sound and Annual, Jan–Dec, 24 USCG Class I: Small Sinking gillnet, shallow 8 sets/month, 96 sets Survey, (MDMR) 1. estuaries; 0.2–2 m DAS, daytime oper- vessel. deployment. total. depths. ations only. Smalltooth Sawfish Abun- Ten Thousand Islands, Annual, Mar–Nov, 56 USCG Class I: R/V Set gillnet, shallow de- ~20 sets/month, 180– dance Survey, FL backcountry region, DAS (6–7 DAS/trip), Pristis. ployment. 200 sets total. (SEFSC) 1. including areas in Ev- daytime operations erglades National Park only. and Ten Thousand Is- land National Wildlife Refuge in 0.2–1.0 m depths. Pelagic Longline Sur- U.S. GOM ...... Intermittent, Feb–May, 30 USCG R/V: R/V Oregon Pelagic longline ...... 100–125 sets. vey—GOM, (SEFSC) 1. DAS, 24 hour oper- II. CTD profiler ...... 100–125 casts. ations (set/haul any- time day or night). Shark and Red Snapper Randomly selected sites Annually, July–Sep, 60 USCG R/V: R/V Oregon Bottom longline ...... 175 sets Bottom Longline Sur- from FL to Brownsville, DAS, 24 hour oper- II, R/V Gordon Gunter;. CTD profiler and rosette 175 casts. vey-GOM, (SEFSC) 1. TX between bottom ations (set/haul any- USCG Small R/V: R/V water sampler. depths 9–366 m. time day or night). Caretta, R/V Gandy. SEAMAP—GOM Bottom AL—MS Sound, Mobile Annually, Apr–May, USCG Class III: R/V E.O. Bottom longline ...... AL—32 sets. Longline Survey, Bay, and near Dauphin June–July, Aug–Sep. Wilson, R/V Alabama MS—40. (ADCNR, USM–GCRL, Island. AL—8 DAS, day oper- Discovery, R/V De- LA—98. LDWF, TPWD) 1. MS—MS Sound, south of ations only. fender I, R/V Tom TX—20. the MS Barrier Islands, MS—16 DAS, day oper- McIlwain, RV Jim CTD Profiler ...... AL—32 casts. Chandeleur, and Bret- ations only. Franks, R/V Nueces, LA—40. on Sound, and the LA—30 DAS, day oper- R/V SanJacinto. Water quality and chem- MS—40 casts. area east of the ations only. USCG R/V: R/V Blazing istry (YSI instruments, TX—20. Chandeleur Islands. TX—10 DAS, day oper- Seven (2011–2014). Niskin bottles, turbidity LA—LA waters west of ations only. meter). the MS River. TX—near Aransas Pass and Bolivar Roads Ship Channel. IJA Biloxi Bay Beam MS state waters in Biloxi Annually, Jan–Dec, 25 USCG Class I: R/V Grav Modified beam trawl ...... 11 trawls/month, 132 Trawl Survey, Bay, 1–5 ft depths. DAS, day operations I, R/V Grav II, R/V trawls total. (MDMR) 1. only. Grav IV. IJA Inshore Finfish Trawl MS state waters from Annually, Jan–Dec, 12 USCG Class I: small ves- Otter trawl ...... 72 trawls. Survey, (MDMR) 1. Bay St. Louis, to ap- DAS, day operations sel R/V Geoship. proximately 2 miles only. south Cat Island, 5–25 ft depths. IJA Open Bay Shellfish TX state waters in Gal- Annually, Jan–Dec, 120 USCG Class I: small ves- Otter trawl ...... 90 trawls/month, 1080 Trawl Survey, (TPWD) 1. veston, Matagorda, DAS, day operations sel. trawls total. Aransas, and Corpus only. USCG Class II: R/V Trin- Water quality and chem- Christi Bays and the ity Bay, R/V Copano istry (YSI instruments, lower Laguna Madre, Bay, R/V RJ Kemp. Niskin bottles, turbidity 3–30 ft depths. meter).

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TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

Oceanic Deep-water U.S. GOM waters >500 Intermittent due to fund- USCG R/V: R/V Gunter, High Speed Midwater 60 trawls (2–3 per day). Trawl—GOM, m deep. ing, 20 DAS, 24 hour R/V Pisces. Trawl, Aleutian Wing (SEFSC) 1. operations. Trawl. * conducted in 2009 & CTD profiler and rosette 60 casts. 2010 and in the future water sampler. Tow speed: 0. as funding allows. Duration: 60–90 min. St. Andrew Bay Juvenile St. Andrew Bay, FL, up Annually, May–Nov, 28 USCG Class I: Boston Benthic Trawl ...... 13 trawls per week, 24 Reef Fish Trawl Sur- to 2 m depths. DAS, day operations Whaler. weeks, 312 trawls vey, (SEFSC) 1. only, (one day/week). total. Small Pelagics Trawl Sur- U.S. GOM in depths of Annually, Oct–Nov, 40 USCG R/V: R/V Gordon High-opening bottom 150–200 trawls. vey, (SEFSC) 1. 50–500 m. DAS, 24 hour oper- Gunter, R/V Pisces. trawl. ations (set/haul any- time day or night). Simrad ME70 Multi-Beam Continuous. echosounder. EK60 Multi-frequency Continuous. single-beam active acoustics. ADCP ...... Continuous. CTD profiler and rosette 250 casts. water sampler. SEAMAP–GOM Shrimp/ U.S. GOM from FL to Annually, summer (June USCG Class II: R/V Trin- Otter trawl ...... Effort evenly divided be- Groundfish Trawl Sur- Mexico in depths of & July) and fall (Oct– ity Bay, R/V Copano tween seasons unless vey, (SEFSC, FFWCC, 30–360 ft. Nov), effort evenly di- Bay, R/V RJ Kemp. noted. ADCNR, USM/GCRL, vided between sea- USCG Class III: R/V A.E. SEFSC—345 trawls LDWF) 1. sons unless noted; all Verrill, R/V Alabama (summer), 325 (fall). surveys have 24 hour Discovery, R/V Sabine FL—160 (summer only). operations-set/haul Lake, R/V Nueces, R/V AL—16–24. anytime day or night. San Jacinto, R/V San MS—60. SEFSC—80 DAS ...... Antonio, R/V LA—32. FL—20 DAS (summer Matagorda Bay. only). USCG R/V: R/V Oregon CTD profiler and ro- SEFSC—395 casts AL—6 DAS ...... II, R/V Tommy Munro, sette water sampler (summer), 305 (fall). MS—6 DAS ...... R/V Weatherbird II, R/ TPWD uses YSI FL—200 (summer only). LA—5 DAS ...... V Pelican, R/V Blazing Datasonde 6600 v2–4. AL—20. Seven (2011–2014), R/ MS—81. V Point Sur. LA—39. SEFSC BRD Evaluations, State and Federal near- Annually, May & Aug USCG Class III: R/V Western jib shrimp trawls 20 paired trawls each (SEFSC) 1. shore and offshore (one week/month), 14 Caretta. season, 40 paired waters off FL, AL, MS, DAS, night operations trawls total. and LA at depths of only. 10–35 m. Also Mis- sissippi Sound at depths of 3–6 m. SEFSC–GOM TED Eval- State and Federal near- Annually, May, Aug, & USCG Class I & II: Western jib shrimp trawls 30 paired trawls per sea- uations, (SEFSC) 1. shore and offshore Sep (one week/month), NOAA small boats. son, 90 paired trawls waters off FL, AL, MS, 21 DAS, day oper- USCG Class III: R/V total. and LA at depths of ations only. Caretta. 10–35 m. Also Mis- sissippi Sound at depths of 3–6 m. SEFSC Skimmer Trawl Conducted in Mississippi Annually until 2016 (ten- USCG Class III: R/V Skimmer trawls ...... 600 paired trawls. TED Testing, Sound, Chandeleur tative depending on Caretta. (SEFSC) 1. Sound, and Breton funding and need) Sound at depths of 2– May–Dec, 5–15 DAS/ 6 m. month, 60 DAS total, 24 hour operations-set/ haul anytime day or night. SEFSC Small Turtle TED State waters in St. An- Annually , 21 DAS, day USCG Class III: R/V Western jib shrimp trawls 100 paired trawls. Testing and Gear Eval- drews Bay, FL and off operations only. Caretta. are utilized during TED uations, (SEFSC) 1. Shell Island and/or evaluations. Panama City Beach, FL at depths of 7–10 m. IJA Biloxi Bay Seine Sur- MS state waters in Biloxi Annually, Jan–Dec, 25 USCG Class I & II: R/V Bag seine ...... 11 sets/month, 132 sets vey, (MDMR) 1. Bay, 1–5 ft depths. DAS, day operations Grav I, R/V Grav II, R/ total. only. V Grav IV, small ves- sel. IJA Oyster Dredge Moni- MS state waters, at com- Annually, Jan–Dec, 12 USCG Class I: R/V Oyster dredge ...... 38 tows. toring Survey, (MDMR). mercially important DAS, day operations Rookie. oyster reefs: Pass only. USCG Class II: R/V Christian Complex, Silvership. Pass Marianne Reef, Telegraph Reef and St. Joe Reef, in 5–15 ft depths.

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TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

IJA Shoreline Shellfish TX state waters in Gal- Annually, Jan–Dec, 120 N/A ...... Bag seine ...... 100 sets/month, 1200 Bag Seine Survey, veston, Matagorda, DAS, day operations total. (TPWD) 1. Aransas, and Corpus only. Christi Bays and the lower Laguna Madre, 0–6 ft depths. Marine Mammal and Eco- Northern GOM ...... Every three years, June– USCG R/V: R/V Gordon CTD profiler and rosette 60 casts. system Assessment Sep, 60 DAS, 24 hour Gunter. water sampler. Survey-GOM, operations (set/haul (SEFSC) 1. anytime day or night). Expendable 300 units. bathythermographs. ADCP ...... Continuous. Simrad ME70 Multi-Beam Continuous. echosounder. EK60 Multi-frequency Continuous. single-beam active acoustics. Passive acoustic arrays Continuous. Northeast GOM MPA Sur- Madison-Swanson, Annually, Feb–Mar, 60 USCG Class III: R/V 4-camera array ...... 100—200 deployments vey, (SEFSC). Steamboat Lumps, and DAS, day operations Caretta. CTD Profiler ...... 100—200 casts. *Currently Inactive ...... The Edges marine re- only. serves on the West Florida Shelf. Panama City Laboratory Penscecola, FL to Cedar Annually, May–Sep, 40 USCG Class II: R/V Har- 4-camera array ...... 200 deployments. Reef Fish (Trap/Video) Key, FL. DAS, day operations old B, Survey, (SEFSC). only. USCG Class III: R/V Chevron fish trap out- 100 sets. Caretta, R/V Defender, fitted with one GoPro R/V Apalachee. video camera. CTD profiler ...... 200 casts. SEAMAP–GOM Finfish State and Federal waters AL: Annually, two inter- USCG Class III: R/V Es- Bandit gear ...... AL: 120 sets per season, Vertical Line Survey, off Alabama at sam- vals: spring (Apr/May) cape, R/V Lady Ann, 240 sets total. (ADCNR, LDWF, USM/ pling depths from 60 to and summer (July– R/V Defender I. LA: 100 sets total. GCRL). 500 ft and LA waters Sep), 9 DAS, day op- USCG R/V: R/V Blazing TX: 165 sets total. west of the Mississippi erations only. Seven (2011–2014), River across three LA and TX: Annually, Poseidon, Trident R/V depth strata (60–120 ft, April–Oct. Sabine, San Jacinto, 120–180 ft, and 180– San Antonio, Nueces, 360 ft) and selected Laguna. areas of Texas at three depth strata (33–66 ft, 66–132 ft, and 132– 495 ft). Stations are sampled during day- light hours. State and Federal waters Annually, Mar–Oct, 16 USCG Class III: R/V Jim Bandit gear ...... 15 stations/season—45 off MS. Sampling DAS (4 days/month), Franks. stations total, 3 sets depths 5–55 fathoms.. day operations only. per station, 135 sets Stations are sampled total. during daylight hours. SEAMAP–GOM Plankton State and Federal waters AL: Annually, Aug–Sep, USCG Class III: R/V A.E. Bongo net ...... AL: 6 tows. Survey, (ADCNR, off the coast of AL, 2 DAS, day operations Verrill, R/V Alabama LA: 9 tows. LDWF, USM/GCRL). MS, LA, and FL. only. Discovery, R/V MS: 20 tows. LA: Annually, June, Sep, Acadiana. Neuston net ...... AL: 6 tows. 2 DAS, day operations USCG R/V: R/V Blazing LA: 9 tows. only. Seven (2011–2014), R/ MS/FL: 20 tows. MS: Annually, May and V Point Sur; R/V De- CTD Profiler ...... AL: 6 casts. Sep, 4 DAS, 24 hour fender. LA: 9 casts. operations. MS/FL: 20 casts. SEAMAP–GOM Plankton Coastal, shelf and open Annually, Feb–Mar (win- USCG R/V: R/V Oregon Bongo net ...... 650 tows. Survey, (SEFSC). ocean waters of the ter), 30 DAS;. II, R/V Gordon Gunter, Neuston net ...... 650 tows. GOM. Apr–May (spring), 60 R/V Pisces. MOCNESS ...... 378 tows. DAS;. Methot juvenile fish net .. 126 tows. Aug–Sep (fall), 36 DAS .. CTD profiler and rosette 756 casts. 24 hour operations (set/ water sampler. haul anytime day or night). SEAMAP–GOM Reef Fish West FL shelf from 26°N Annual, July–Sep, 50 USCG Class I & II: R/V 2-camera array ...... 150 deployments. Monitoring, (FFWCC). to Dry Tortugas, FL. DAS, daylight hours. No Frills, R/V Gulf Chevron fish trap ...... 300–450 sets. Mariner, R/V Sonic, R/ CTD profiler ...... 300 casts. V Johnson, chartered fishing vessels. USCG Small R/V: R/V Bellows, R/V Apalachee. USCG R/V: R/V Weatherbird.

VerDate Sep<11>2014 21:18 Feb 26, 2019 Jkt 247001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 E:\FR\FM\27FEP2.SGM 27FEP2 amozie on DSK3GDR082PROD with PROPOSALS2 Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Proposed Rules 6583

TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

SEAMAP–GOM Reef Fish Gulf-wide survey from Annual, Apr–July, 60 USCG Class III: R/V 4-camera array ...... 400–600 deployments. Survey, (SEFSC). Brownsville, TX to Key DAS, 24 hour oper- Caretta, R/V Gandy. Chevron trap (discon- 50–100 sets. West, FL, in depths of ations on large vessels USCG R/V: R/V Pisces, tinued use in 2013). 15–500 ft. Approxi- (cameras, traps, ban- R/V Oregon II. CTD Profiler ...... 400–600 casts. mately 7.0% of this dit—daytime only), 12 USCG R/V: Southern Bandit Reels ...... 120 sets. survey effort (458 sta- hour operations on Journey. Acoustic Doppler Current Continuous. tions) occurs within the small vessels (daytime NOAA Ship: Gordon Profiler. Florida Garden Banks only). Hunter. Simrad ME70 Multi-beam Continuous. NMS. echosounder. EK60 Multi-frequency Continuous. single-beam active acoustics. IJA Oyster Visual Moni- MS state waters, 5–15 ft Annually, Sep/Oct to Apr/ USCG Class I & II: R/V SCUBA divers ...... ∼ 20 dives. toring Survey, (MDMR). depths. May of following year, Silvership, R/V Rookie. 12 DAS, day oper- ations only. Reef Fish Visual Census Dry Tortugas area in the Biannually, May–Sept, 25 USCG Class II & III: SCUBA divers with meter 300 stations (4 dives per Survey—Dry Tortugas, GOM, <33m deep. DAS, day operations Chartered dive vessel. sticks, 30 cm rule and station). Flower Gardens only. digital camera. (SEFSC). Tortugas Ecological Re- Tortugas South Ecologi- Biannually, summer USCG Class II & III: SCUBA divers, transect 16 stations, each station serve Survey, cal Reserve, Florida (June or July), 6 days, Chartered vessel. tape, clipboards/pencils. done 2–3 times. (SEFSC) *. Keys National Marine day and night 12 hour *Currently inactive since Sanctuary. operations. 2015.. *Survey has been dis- continued since 2015.

Atlantic Research Area

ACFCMA American Eel Goose Creek Reservoir Annually, Feb–Apr, 32 USCG Class A: John Fyke net ...... 1 station per day, 40 col- Fyke Net Survey, or the Cooper River, DAS, day operations Boat—no motor, walk/ lections total. (SCDNR). near Charleston, SC, only. wade to work net. 1–7 ft depths. Thermometer ...... 32 casts. ACFCMA American Shad Santee, Edisto, Annual, Jan–Apr, (2–3 USCG Class I: R/V Ba- Drift gillnet ...... 4–5 sets/trip, 120 sets Drift Gillnet Survey, Waccamaw, trips/week), 40 DAS, teau R/V McKee Craft. total. (SCDNR) 1. Combahee Rivers, SC. day operations only. RecFIN Red Drum Tram- Coastal estuaries and riv- Annually, Jan–Dec, 120– USCG Class I: Florida Trammel net ...... 1000 sets/yr covering mel Net Survey, ers of SC in depths of 144 DAS (14–18 days/ Mullet Skiffs. 225 stations/yr. Oper- (SCDNR). 6 ft or less along month), day operations ates in 7–9 strata/ shoreline.. only. month. HMS Chesapeake Bay Chesapeake Bay and Annually, May–Oct (5 USCG Class III: R/V Bay Bottom longline ...... 50 sets. and Coastal Virginia state and Federal days/month), 30 DAS, Eagle. Hydrolab MS5 Sonde ..... 50 casts. Bottom Longline Shark waters off Virginia. day operations only. Survey, (VIMS) 1. MARMAP Reef Fish Long South Atlantic Bight (be- Annually 1996–2012 *, USCG Small R/V: R/V Bottom longline ...... 60 sets. Bottom Longline Sur- tween 27°N and 34°N, Aug–Oct, 10–20 DAS, Lady Lisa. CTD profiler ...... 60 casts. vey, (SCDNR) 1. but mostly off GA and day operations only. SC). Sampling occurs *Halted in 2012 but will in Federal waters. resume annually if Depths from ∼ 500 to funding obtained. 860 ft. MARMAP/SEAMAP–SA South Atlantic Bight (be- Annually, year-round but USCG R/V: R/V Palmetto Chevron fish trap out- 600 sets. Reef Fish Survey, tween 27°N and 34°N). primarily Apr–Oct, 70– fitted with two cameras. (SCDNR) 1. 120 DAS, day oper- *Inactive 2012–2014 ...... ations only. Bottom longline ...... 60 sets...... Bandit reels ...... 400 sets...... CTD profiler ...... 300 casts.. Pelagic Longline Survey- Cape Hatteras, NC to Intermittent, Feb–May, 30 USCG R/V: R/V Oregon Pelagic Longline ...... 100–125 sets. SA, (SEFSC) 1. Cape Canaveral, FL. DAS, 24 hour oper- II. CTD profiler ...... 100–125 casts. (See also effort con- ations (set/haul any- ducted in the GOMRA). time day or night). Shark and Red Snapper Cape Hatteras, NC to Annually, July–Sep, 60 USCG Class III: R/V Bottom longline ...... 70 sets. Bottom Longline Sur- Cape Canaveral, FL DAS, 24 hour oper- Caretta. vey-SA, (SEFSC) 1. between bottom depths ations (set/haul any- USCG R/V: R/V Oregon CTD profiler and rosette 70 casts. (See also effort con- 9–183 m. time day or night). II, R/V Gordon Gunter. water sampler. 0–20 tows. ducted in the GOMRA). Neuston and bongo effort if needed to augment SEAMAP plankton ob- jectives.

VerDate Sep<11>2014 21:18 Feb 26, 2019 Jkt 247001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 E:\FR\FM\27FEP2.SGM 27FEP2 amozie on DSK3GDR082PROD with PROPOSALS2 6584 Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Proposed Rules

TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

SEAMAP–SA Red Drum NC: Pamlico Sound or in Annually ...... USCG Class II: 26 ft out- Bottom longline ...... NC: 75–100 sets total. Bottom Longline Sur- the nearshore waters NC: mid-July to mid-Oct board. SC: 360 sets. vey, (NCDEQ, SCDNR, of Ocracoke Inlet. (2 days/week for 12 USCG Class III: R/V GA: 200–275 sets. GDNR) 1. SC: Estuaries out to 10 weeks), 24 DAS, 12 Marguerite, R/V Silver YSI (Dissolved oxygen, NC: 75–100 casts. miles in Winyah Bay, hour operations, begin- Crescent. salinity, temperature). SC: 360 casts. Charleston Harbor, St. ning at dusk. GA: 200–275 casts. Helena Sound, and SC: Aug–Dec, day oper- Port Royal Sound. ations only 36 DAS GA: State and Federal GA: Apr–Dec (6 days/ waters off the coast of month), 54 DAS, day GA and NE FL, operations only. (∼32°05′N latitude to the north, 29°20′N lati- tude to the south, 80°30′W longitude to the east, and the coastline to the west.). ACFCMA Ecological Mon- Georgia state waters out Annually, Jan–Dec (7 USCG Class III: R/V Otter trawl ...... 42 trawls/month, 504 itoring Trawl Survey, to three nm, 10–35 ft days/month), 84 DAS, Anna. trawls total. (GDNR) 1. depths. day operations only. YSI 85 (Dissolved oxy- 504 casts total. gen, salinity, tempera- ture). ACFCMA Juvenile Stage Creeks and rivers of Annually, Dec–Jan (3 USCG Class I: 19 ft Otter trawl ...... 18 trawls/month, 216 Trawl Survey, (GDNR) 1. three Georgia sound days/month), 36 DAS, Cape Horn; 25 ft trawls total. systems (Ossabaw, Al- day operations only. Parker. tamaha, and St. An- drew). YSI 85 (Dissolved oxy- 216 casts total. gen, salinity, tempera- ture). Atlantic Striped Bass Tag- North of Cape Hatteras, Annually, Jan–Feb, 14 USCG R/V: R/V Oregon 65 ft high-opening bottom 200–350 trawls. ging Bottom Trawl Sur- NC, in state and Fed- DAS, 24 hour oper- II, R/V Cape Hatteras, trawls. vey, (USFWS) 1. eral waters, 30–120 ft ations (set/haul any- R/V Savannah. depths. time day or night). Juvenile Sport Fish Trawl Florida Bay, FL ...... Annually, May–Nov, 35 USCG Class I: R/V Otter trawl ...... ¥500 trawls. Monitoring in Florida DAS, day operations Batou. Bay, (SEFSC) 1. only. Oceanic Deep-water Southeastern U.S. Atlan- Intermittent due to fund- USCG R/V: NOAA ships High Speed Midwater 60 trawls (2–3 per day). Trawl Survey tic waters >500 m ing, 20 DAS, 24 hour Trawl, Aleutian Wing (SEFSC) 1. deep. operations (trawls may Trawl. *Currently Inactive ...... be set and retrieved day or night), *conducted as funding al- lows. CTD profiler and rosette 60 casts. water sampler. SEAMAP–SA NC Pamlico Pamlico Sound and the Annually, June & Sep, 20 USCG Class III: R/V Otter trawl: paired mon- 54 trawls each month, Sound Trawl Survey, Pamlico, Pungo, and DAS (10 days/month), Carolina Coast. goose-type Falcon bot- 108 trawls total. (NCDENR) 1. Neuse rivers in waters day operations only. tom trawls. ≥6 ft deep. Ponar grab ...... 54 casts each month, 108 total. YSI 556 (Dissolved oxy- 54 casts each month, gen, salinity, tempera- 108 total. ture). Secchi disk ...... 54 casts each month, 108 total. SEAMAP–SA Coastal Cape Hatteras, NC to Annually, Apr–May USCG Small R/V: R/V Otter trawl: paired mon- 300–350 trawls total, Trawl Survey, Cape Canaveral, FL in (spring), July–Aug Lady Lisa. goose-type Falcon bot- evenly divided between (SCDNR) 1. nearshore oceanic (summer), and Oct– tom trawls. seasons. waters of 15–30 ft Nov (fall), 60–65 DAS, depth. day operations only. SEABIRD electronic CTD 300–350 casts. SEFSC–SA TED Evalua- State and Federal waters Annually, Nov–Apr, 10 USCG Class III: R/V Otter trawl: Mongoose 50 paired trawls. tions, (SEFSC) 1. off Georgia and east- DAS, 24 hour oper- Georgia Bulldog. shrimp trawls. ern FL. ations-set/haul anytime day or night. In-Water Sea Turtle Re- Winyah Bay, SC to St. Annually, mid-May USCG Class III: R/V Paired flat net bottom 400–450 trawls. search (SCDNR) 1. Augustine, FL in water through late Jul to Georgia Bulldog. trawls (NMFS Turtle depths of 15–45 ft. early Aug, 24–30 DAS, USCG Small R/V: R/V Nets per Dickerson et day operations only. Lady Lisa. al. 1995) with tickler chains.

VerDate Sep<11>2014 21:18 Feb 26, 2019 Jkt 247001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 E:\FR\FM\27FEP2.SGM 27FEP2 amozie on DSK3GDR082PROD with PROPOSALS2 Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Proposed Rules 6585

TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

ACFCMA American Eel Georgia state waters in Annually. Sampling USCG Class I: 19 ft Eel traps/pots with float .. 30 stations (180 sets/ Pot Survey for Yellow- the Altamaha River monthly Nov–Apr. Cape Horn, 18 ft skiff. month; 30 traps set phase Eels, (GADNR). System. Sampling is based on water temp. each of 6 days). conducted during day- 36 DAS (6 days/ light hours. Depth month), day operations ranges from 2 to 20 ft. only. Beaufort Bridgenet Plank- Pivers Island Bridge, Annually, Nov–May None ...... Plankton net ...... 125 tows. ton Survey, (SEFSC). NOAA Beaufort facility, (some years monthly Beaufort, NC. Jan–Dec), night oper- ations only sampling occurs once per week, n + 4 tows per night. Integrated Biscayne Bay Western shoreline of Bis- Twice annually, May–Oct USCG Class II & III ves- Human divers ...... 100 dives Ecological Assessment cayne Bay, FL. (wet season) and Nov– sels. Throw trap ...... 372 casts. and Monitoring Project Apr (dry season), 14 (IBBEAM) Project, DAS, day operations (SEFSC). only. Intraspecific Diversity in Florida Bay, Whitewater Annually, June–Aug, 16 USCG Class I: R/V Pri- Miniature roller-frame 40 trawls. Pink Shrimp Survey, Bay, Fakahatchee Bay, DAS, day operations vateer. trawl. (SEFSC). Biscayne Bay, Sanibel only. Dip net ...... 40 samples. *Currently inactive ...... shrimp fishery, Bag seine ...... 40 sets. Tortugas shrimp fish- ery. Marine Mammal and Eco- Southeastern U.S. Atlan- Every three years, June– USCG R/V: R/V Gordon CTD profiler and rosette 60 casts. system Assessment tic. Sep, 60 DAS, 24 hour Gunter. water sampler. Survey-SA, (SEFSC) 1. operations. Expendable 300 units. bathythermographs. Acoustic Doppler Current Continuous. Profiler. Simrad ME70 Multi-Beam Continuous. echosounder. EK60 Multi-frequency Continuous. single-beam active acoustics. Passive acoustic arrays Continuous. RecFIN Red Drum Coastal estuaries and riv- Annually, Jan–Dec, 60– USCG Class I: Small 18 ft elecrofishing boat ... 360 stations per year (30 Electrofishing Survey, ers of SC in depths of 72 DAS (5–6 days/ vessels. sites/month). (SCDNR). 6 ft or less in low salin- month), day operations ity waters (0–12 ppt). only. St. Lucie Rod-and-Reel Nearshore reef, inlet, and Annually, Jan–Dec, USCG Class I: Small Rod and reel gear ...... 468 stations per year: 3/ Fish Health Study, estuary of St. Lucie weekly, 156 DAS, day vessels. day × 3 day/wk. (SEFSC) 1. River, FL inlet system operations only. *Currently inactive ...... (Jupiter or Ft. Pierce, FL). SEAMAP–SA Gag In- In the vicinity of Annually, Mar–June, 100 USCG Class I: Small Witham collectors ...... 15 sets (4 collectors at gress Study, (SCDNR). Swansboro, NC; Wil- DAS, day operations vessels. each set), 60 sets *Inactive since 2016 ...... mington, NC; George- only. total. town, SC; Charleston, SC; Beaufort, SC; Sa- vannah, GA; and Brunswick, GA. Southeast Fishery Inde- Cape Hatteras, NC, to Annually, Apr–Oct, 30–80 USCG R/V: R/V Nancy Chevron fish trap out- 1000 deployments. pendent Survey St. Lucie Inlet, FL. DAS, 24 hour oper- Foster, R/V Pisces, R/ fitted with 2 high-defini- (SEFIS) (SEFSC) 1. Fifteen survey stations ations (cameras & V Savannah. tion video cameras. occur within Gray’s traps-daytime oper- Reef NMS. ations, acoustics—any- time day or night). CTD profiler ...... 100–200 casts. Simrad ME70 Multi-Beam Continuous. echosounder. Multi-frequency single- Continuous. beam active acoustics. U.S. South Atlantic MPA Jacksonville, FL to Cape Annually, May–Aug, 14 USCG R/V: R/V Pisces, ROV Phantom S2 vehicle 10–40 deployments. Survey, (SEFSC) 1. Fear, NC on or near DAS, 24 hour oper- R/V Nancy Foster, R/V with tether attached to the continental shelf ations (ROV daytime Spree. CTD cable. edge at depths be- operations, acoustics— CTD profiler ...... 28 casts. tween 80 and 600 m. anytime day or night). Simrad ME70 Multi-Beam Every other night for 6– echosounder. 12 hrs. EK60 Multi-frequency Every other night for 6– single-beam active 12 hrs. acoustics.

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TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

FL/Dry Tortugas Coral Survey area encom- Quarterly-annually, May– USCG Class I & II: small SCUBA divers with 300 dives. Reef Benthic Survey, passes Federal and Oct, 100 DAS. vessels. measuring devices, (SEFSC). territorial waters from cameras, and hand Dry Tortugas to Martin tools. County, FL. Surveys occur within the Florida Keys NMS (150 sta- tions). Demographic Monitoring Florida Keys National 3x per year, ∼35 DAS ..... USCG Class I ...... SCUBA divers ...... 30 fixed plots. of Acropora Species, Marine Sanctuary. (SEFSC). Reef Fish Visual Census Florida Keys NMS and Annually, May–Sep, 25 USCG Class I: R/V Aldo SCUBA divers with meter 300 dives. Survey—Florida Keys/ SE Florida Shelf, <33 DAS, day operations Leopold. sticks, 30 cm rule and SE Florida Shelf, m deep. only. digital camera. (SEFSC).

Caribbean Research Area.

Caribbean Plankton Re- Caribbean and Mexican Bi-annually, Feb or June, USCG R/V: R/V Gordon Bongo net ...... 75 tows cruitment Experiment, waters. 15 DAS, 24 hour oper- Gunter, R/V Nancy MOCNESS ...... 75 tows (SEFSC). ations, anytime day or Foster. CTD profiler and rosette 75 casts. night. water sampler. Caribbean Reef Fish Sur- PR and USVI, continental Every two years, Mar– USCG R/V: R/V Pisces, Bandit Reels ...... 300 sets. vey, (SEFSC) 1. shelf waters. June, 40 DAS, 24 hour R/V Oregon II. 4-camera array ...... 150 deployments. operations. Chevron traps ...... 100 sets. CTD profiler ...... 300 casts. Simrad ME70 Multi-Beam Continuous. echosounder. Acoustic Doppler Current Continuous. Profiler. EK60 Multi-frequency Continuous. single-beam active acoustics. Marine Mammal and Eco- U.S. Caribbean Sea ...... Every three years, June– USCG R/V: R/V Gordon CTD profiler and rosette 60 casts. system Assessment Sep, 60 DAS, 24 hour Gunter. water sampler. Survey-C, (SEFSC) 1. operations-acoustics— anytime day or night. Expendable 300 units. bathythermographs Acoustic Doppler Current Continuous. Profiler. Simrad ME70 Multi-Beam Continuous. echosounder. EK60 Multi-frequency Continuous. single-beam active acoustics. Passive acoustic arrays Continuous. SEAMAP–C Reef Fish USVI and PR territorial Annually, Jan–Dec, ...... USCG Class I & III: ...... Camera array—two PR: 120 per coast total Survey (PR–DNER, and Federal waters at (Day operations only) ..... Three chartered vessels GoPro cameras and of 240. USVI–DFW). 15–300 ft depths. PR: 70 DAS for each four lasers set on an USVI: 72 per island, 144 *Began 2017 coast. aluminum frame. total. USVI: ∼30 DAS. SEAMAP–C Lane Snap- East, west, and south Annually beginning July USCG Class III: Two Bottom longline ...... 45 sets/season, 180 sets per Bottom Longline coasts of PR in terri- 2015, (summer, winter, chartered vessels. total. Survey, (PR–DNER) 1. torial and Federal fall, spring), 120 DAS waters at depths rang- (30 days/season), night ing from 15–300 ft. operations only. SEAMAP–C Yellowtail East, west, and south Annually beginning 2014, USCG Class I & III: Rod-and-reel gear ...... 120 stations (360 lines Snapper Rod-and-Reel coasts of PR in terri- (4 sampling seasons), Three chartered ves- total). Survey, (PR–DNER) 1. torial and Federal 120 DAS, night oper- sels. waters at depths rang- ations only. ing from 15–300 ft. Caribbean Coral Reef Federal and territorial Annual to triennial, May– USCG Class I & II: Small SCUBA divers with 300 dives. Benthic Survey, waters around PR, Oct, 30 DAS, day op- vessel <28 ft. measuring devices and (SEFSC). USVI, and Navassa. erations only. hand tools. Reef Fish Visual Census PR and USVI waters Annually, May–Sept, 25 USCG Class I & II: Small SCUBA divers with meter 300 dives. Survey—U.S. Carib- <100 ft deep. DAS, day operations vessel <24 ft. sticks, 30 cm rule and bean, (SEFSC). only. digital camera. SEAMAP–C Queen PR and USVI territorial Annually, ...... USCG Class I & III: SCUBA divers, SCUBA PR: 100 dives. Conch Visual Survey, waters in 10–90 ft PR: July–Nov, 35 DAS ... Three chartered ves- gear and underwater USVI: 62 dives. (PR–DNER, USVI– depths, some sampling USVI: June–Oct, 62 sels. scooters. DFW). occurs in Federal DAS, day operation waters. only. SEAMAP–C Spiny Lob- PR territorial waters in 6– Every four years ...... USCG Class I & III: Fifty-six modified Witham 6 stations along the west ster Post Larvae Settle- 90 ft depths. West cost of PR: Jan– Three chartered ves- pueruli collectors. coast platform per ment Surveys, (PR– Dec, 84 DAS. sels. depth and distance DNER). R/V Erdman. from the shoreline.

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TABLE 1—SUMMARY DESCRIPTION OF FISHERIES AND ECOSYSTEM RESEARCH ACTIVITIES CONDUCTED OR FUNDED BY THE SEFSC IN THE GOMRA, ARA, AND CRA—Continued

Season, frequency, Survey name General area of yearly days at sea Vessel used Gear used Number of stations (research agency) operation (DAS)

SEAMAP–C Spiny Lob- PR and USVI territorial Annually, ...... USCG Class I & III: Juvenile lobster artificial 10 shelters, continuous ster Artificial Habitat waters in 6–90 ft PR: Jan–Dec, 84 DAS ... Three chartered ves- shelters. deployment. Survey, (PR–DNER, depths. USVI: Jan–Dec, 20 DAS, sels. SCUBA divers, SCUBA PR: 60 dives. USVI–DFW). day operations only. gear and underwater USVI: 20 dives. scooters. 1 These surveys have the potential to take marine mammals through M/SI and/or Level B harassment. * Inactive projects are currently not conducted but could resume if funds became available.

Gillnets—A gillnet is a wall of netting calls for a short, 10 minute soak time capture target species at or near the that hangs in the water column, before the net is hauled. seafloor. Skimmer trawls are used at the typically made of monofilament or A total of six survey programs (3 in surface. Contrary to skimmer trawls, multifilament nylon. Mesh sizes are GOMRA, 3 in ARA) utilize gillnets to bottom trawls are not usually visible designed to allow fish to get only their accomplish the SEFSC’s research after they are deployed because they head through the netting, but not their objectives (see Table 1–1 in SEFSC’s operate at or near the sea floor and the body. The fish’s gills then get caught in application). In total, 545 set gillnet optical properties of the water limit the the mesh as the fish tries to back out of deployments and 96 sinking gillnet ability to see the bottom from the the net. A variety of regulations and deployments would be made in the surface. Pelagic trawls are designed to factors determine the mesh size, length, GOMRA, primarily in bays, sounds, and operate at various depths within the and height of commercial gillnets, estuaries. These surveys occur year- water column and are most commonly including area fished and target species. round and each set typically lasts up to set at the surface or mid-water depths. Gillnets can be fished floating or 1 hour with the exception of the gillnets The trawl gear may be constructed and sinking, and stationary or drifting. Set fished in shallow waters (0.2 to 1 m) for rigged for various target species and to gillnets are attached to poles fixed in the the Smalltooth Sawfish Abundance operate over different types of bottom substrate or an anchor system to prevent Survey which can last 1 to 4 hours. In surfaces. movement of the net (i.e., stationary) the ARA, 120 drift gillnet sets would be Trawls typically used in estuaries while drift gillnets are free-flowing but deployed in rivers and estuaries for the include semi-balloon shrimp trawls kept afloat at the proper depth using a American Shad Drift Gillnet Survey (fished near creeks and rivers of Georgia system of weights and buoys attached to conducted by the SCDNR. Sound) and miniature roller-frame the headrope, footrope, or floatline. Trawl nets—A trawl is a funnel- trawls (fished at various South Florida shaped net towed behind a boat to estuaries). In coastal waters, the types of A trammel net is a type of gillnet. capture fish. The codend (or bag) is the trawls (and operating depths) SEFSC However, unlike single wall gillnets, fine-meshed portion of the net most and partners typically use include which will catch a narrow range of fish distant from the towing vessel where modified beam trawls (1–5 ft), otter sizes, a trammel net is a type of gillnet fish and other organisms larger than the trawls (3–360 ft), benthic trawls (up to that will catch a wide variety of fish mesh size are retained. In contrast to 7 ft), western jib shrimp trawls (10–20 sizes. Essentially, a trammel net is three commercial fishery operations, which ft), and skimmer trawls (7–20 ft). layers of netting tied together on a generally use larger mesh to capture Typical offshore trawls (and operating common floatline and common leadline. marketable fish, research trawls often depths) include high speed midwater The two outer layers of netting (known use smaller mesh to enable estimates of trawls (> 1,600 ft), Aleutian wing trawls as walls or brails) are constructed out of the size and age distributions of fish in (> 1,600 ft), and high-opening bottom large mesh netting (12 in to 18 in a particular area. The body of a trawl net trawls (160 to 1,600 ft). square) with a twine size of #9 is generally constructed of relatively All trawls have a lazy line attached to multifilament nylon or 0.81 millimeter coarse mesh that functions to gather the codend. The lazy line floats free (mm) to 0.90 mm monofilament. The schooling fish so that they can be during active trawling, and as the net is light-weight or fine netting sandwiched collected in the codend. The opening of hauled back, it is retrieved with a boat- between the two walls is usually small the net, called the mouth, is extended or grappling-hook to assist in guiding mesh multifilament or monofilament horizontally by large panels of wide and emptying the trawl nets. Twisted, gill netting. Trammel nets have a large mesh called wings. The mouth of the three-strand, polypropylene is the most amount of lightweight gill netting hung net is held open by hydrodynamic force commonly used type of rope for lazy in the nets, and fish will be caught by exerted on the trawl doors attached to lines due to cost, strength, handling, gilling or by tangling in the excess the wings of the net. As the net is towed and low specific gravity (0.91), which netting. through the water, the force of the water allows it to float. Trammel nets are only used by the spreads the trawl doors horizontally Active acoustic devices (described SCDNR in the ARA. The SCDNR sets apart. The top of a net is called the later) incorporated into the research trammel nets in depths of 6 ft or less headrope, and the bottom is called the vessel and the trawl gear monitor the along a shoreline. Scientists monitor the footrope. position and status of the net, speed of immediate area 15 minutes prior to The SEFSC uses several types of trawl the tow, and other variables important deploying the gear. Before the net is set, nets: Aleutian Wing Trawl, otter trawls, to the research design. Gear details, while the net is being deployed, during semi-balloon shrimp trawl, mongoose schematics, and photos associated with the soak, and during haulback, the trawl, western jib shrimp trawls, each of these trawl net categories can be scientists monitor the net and waters skimmer trawls, roller frame trawl, and found in Table 1–1 of the SEFSC’s around the net, maintaining a lookout modified beam trawl. Bottom trawls application and Appendix A of the for protected species. Survey protocol (e.g., shrimp trawls) are designed to SEFSC’s Draft PEA.

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For research purposes, the speed and Plankton sampling nets usually consist edge of the dredge is a long bar with duration of the tow and the of fine mesh attached to a weighted teeth that are dragged on the seafloor to characteristics of the net must be frame. The frame spreads the mouth of pick up oysters and deposit them into standardized to allow meaningful the net to cover a known surface area. the chain mesh netting. The oyster comparisons of data collected at 1. Bongo nets are used by the SEFSC dredge used for the Mississippi different times and locations. Typically, during various plankton surveys Department of Marine Resource Oyster tow speed ranges from 2–4 knots (kts) conducted throughout the three research surveys consists of a nine-tooth bar while duration can range from thirty areas. Bongo nets are also used to collect about 20 inches wide with teeth 4 in. seconds to 3 hours at target depth; additional data during shark and finfish long and spaced 2 in. apart. There are however most trawls last less than 30 surveys. Bongo nets consist of two no documented takes of marine minutes. The shorter trawls (30 seconds cylindrical nets that come in various mammals incidental to SEFSC research to 30 minutes) occur in estuaries and diameters and fine mesh sizes (Figure using oyster dredges. coastal waters less than 500 meters in A–13). The bongo nets are towed Hook and Line Gear—A variety of depth while the longer trawls (1–3 through the water at an oblique angle to SEFSC surveys use hook-and-line gears hours) are reserved for offshore, sample plankton over a range of depths. to sample fish either in the water deepwater research. The only During each plankton tow, the bongo column or in benthic environments. exceptions to this are the BRD nets are deployed to a depth of These gear types include baited hooks Evaluation Survey designed to test approximately 210 m and are then deployed on longlines as well as rod- various gear for the shrimp fishery in retrieved at a controlled rate so that the and-reel and bandit gear deployments. the Gulf of Mexico and the SEFSC- volume of water sampled is uniform 1. Longline—Longlines are basically South Atlantic (SA) Turtle Exclusion across the range of depths. In shallow strings of baited hooks that are either Device (TED) Evaluation Survey areas, the sampling protocol is adjusted anchored to the bottom, for targeting designed to test bycatch reduction to prevent contact between the bongo groundfish, or are free-floating, for devices and TEDs for commercial nets and the seafloor. A collecting targeting pelagic species and represent a fishing vessels in the Atlantic Ocean. A bucket, attached to the end of the net, passive fishing technique. Pelagic total of 40 paired BRD Evaluation is used to contain the plankton sample. longlines, which notionally fish near the Survey trawls occur annually in May When the net is retrieved, the collecting surface with the use of floats, may be and August in state and Federal bucket can be detached and easily deployed in such a way as to fish at nearshore and offshore waters, transported to a laboratory. Some bongo different depths in the water column. including Mississippi Sound. Each nets can be opened and closed using For example, deep-set longlines trawl can last up to 2 hours. Fifty paired remote control to enable the collection targeting tuna may have a target depth SEFSC–SA TED Evaluation Survey of samples from particular depth ranges. of 400 m, while a shallow-set longline trawls occur annually from November A group of depth-specific bongo net targeting swordfish is set at 30–90 m through April in state and Federal samples can be used to establish the depth. We refer here to bottom and waters off Georgia and Florida, and each vertical distribution of zooplankton pelagic longlines. Any longline trawl can last up to 4 hours. species in the water column at a site. generally consists of a mainline from Bag seines—Bag seines used in the Bongo nets are generally used to collect which leader lines (gangions) with GOMRA during the Inter-jurisdictional zooplankton for research purposes and baited hooks branch off at a specified Fisheries Act (IJA) Biloxi Bay Seine are not used for commercial harvest. interval and is left to passively fish, or Survey and IJA Shoreline Shellfish Bag There are no documented takes of soak, for a set period of time before the Seine Survey are 50–60 feet long with marine mammals incidental to SEFSC vessel returns to retrieve the gear. 6 ft deep lateral wings (1⁄2 in stretch research using bongo nets. Longlines are marked by two or more nylon multifilament mesh) and 6 ft wide 2. Neuston net—Neuston nets are floats that act as visual markers and may central bag. They are both fished by used to collect zooplankton that lives in also carry radio beacons; aids to hand with the Biloxi Bay survey having the top few centimeters of the sea detection are of particular importance a 20 minute soak time and the shoreline surface (the neuston layer). This for pelagic longlines, which may drift a survey having a 2–3 minute soak time. specialized net has a rectangular mouth significant distance from the Bag seines used in the Intraspecific opening (usually 2 or 3 times as wide as deployment location. Pelagic longlines Diversity Pink Shrimp Survey (also in deep, i.e. 60 cm by 20 cm). They are are generally composed of various the GOMRA) are 9 ft long and taper generally towed half submerged at 1–2 diameter monofilament line and are from 50 to 10 in at the closed codend. kts from the side of the vessel on a boom generally much longer, and with more Bag seines and similar gear are not to avoid the ship’s wake. There are no hooks, than are bottom longlines. considered to pose any risk to protected documented takes of marine mammals Bottom longlines may be of species because of their small size, slow incidental to SEFSC research using monofilament or multifilament natural deployment speeds, and/or structural bongo nets. or synthetic lines. details of the gear and are therefore not 3. Other small nets—The SEFSC also Longline vessels fish with baited subject to specific mitigation measures. uses Methot juvenile fish nets, Multiple hooks attached to a mainline (or However, the officer on watch and crew Opening/Closing Net and groundline). The length of the longline monitor for any unusual circumstances Environmental Sensing System and the number of hooks depend on the that may arise at a sampling site and use (MOCNESS), and bag seines. A species targeted, the size of the vessel, their professional judgment and complete description of this gear and and the purpose of the fishing activity. discretion to avoid any potential risks to SEFSC operational protocols can be Hooks are attached to the mainline by marine mammals during deployment of found in Appendix A of the SEFSC’s another thinner line called a gangion. all research equipment. Draft PEA. There are no documented The length of the gangion and the Plankton nets—SEFSC research takes of marine mammals and NMFS distance between gangions depends on activities include the use of several incidental to research using this gear. the purpose of the fishing activity. plankton sampling nets that employ Oyster Dredge—Oyster dredges are Depending on the fishery, longline gear very small mesh to sample plankton constructed from a metal frame with can be deployed on the seafloor (bottom from various parts of the water column. metal chain netting. Along the front longline), in which case weights are

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attached to the mainline, or near the wings that are 18.8 x 9 feet and bag City Reef Fish survey to help conduct surface of the water (pelagic longline), netting of 700 micron mesh. line surveys and identify cryptic and in which case buoys are attached to the 2. Chevron traps, shrimp cages, eel rare fish species in the Gulf of Mexico. mainline to provide flotation and keep traps and throw traps—Chevron fish Description of Active Acoustic Sound the baited hooks suspended in the traps are wire mesh fish cages that are Sources—A wide range of active water. used to sample fish populations (Figure acoustic devices are used in SEFSC Target species for pelagic longline A–23). The SEFSC uses several different fisheries surveys for remotely sensing surveys conducted by the SEFSC are chevron fish traps of various bathymetric, oceanographic, and pelagic sharks and finfish species. These dimensions that are baited to attract biological features of the environment. pelagic longline protocols have a five- target species. Shrimp cages come in Most of these sources involve relatively nautical mile mainline with 100 various shapes and are constructed of 1- high frequency, directional, and brief gangions. The time period between inch PVC poles that were oriented repeated signals tuned to provide completing deployment and starting vertically attached to two fiberglass sufficient focus and resolution on retrieval of the longline gear is referred hoops and wrapped in 2mm mesh specific objects. SEFSC active acoustic to as the soak time. Soak time is an netting. They work by being lowered sources include various echosounders important parameter for calculating from a vessel or shore onto the bottom (e.g., multibeam systems), scientific fishing effort and is typically three of the sea floor where they are baited sonar systems, positional sonars (e.g., hours for SEFSC surveys. Short soak and left for a certain amount of time and net sounders for determining trawl times can help reduce longline then later retrieved. The SEFSC uses 16 position), and environmental sensors 1 interactions with sea turtles and marine x 20 x 11 inch eel traps with ⁄2-inch (e.g., current profilers). The SEFSC also mammals. Bottom longlines used by the metal mesh. The openings for the uses passive listening sensors (i.e., SEFSC to survey species in deeper internal funnels are 2 x 3 inches and the remotely and passively detecting sound water, including sablefish, have a one- trap is baited with horseshoe crabs and rather than producing it), which do not mile long monofilament mainline that is shrimp heads. Throw traps are small have the potential to impact marine anchored on the seafloor with weights at open ended boxes of aluminum with 1 mammals. 2 the mid-point and ends. The line is m walls and a depth of 45 cm. Research Underwater acoustic sources typically marked at the surface by radar high using any of these traps or cages has used for scientific purposes operate by creating an oscillatory overpressure flyers. little to no potential to result in marine through rapid vibration of a surface, 2. Bandit Reels—Bandit reels are mammal harassment. Conductivity, temperature, and depth using either electromagnetic forces or heavy duty fishing reels that are used profilers (CTD)—A CTD profiler the piezoelectric effect of some for deep sea fishing. These are used by measures these parameters and is the materials. A vibratory source based on the SEFSC to sample fish in the primary research tool for determining the piezoelectric effect is commonly nearshore reef inlet and estuary of the chemical and physical properties of referred to as a transducer. Transducers St. Lucie River, Florida. The SEFSC uses seawater. A CTD profiler may be a fairly are usually designed to excite an a bandit reel with a vertical mainline small device or it may be deployed with acoustic wave of a specific frequency, and 10 gangions that is either deployed a variety of other oceanographic sensors often in a highly directive beam, with from the vessel and marked at the and water sampling devices in a large (1 the directional capability increasing surface by a buoy or is fished while to 2 meter diameter) metal rosette with operating frequency. The main maintaining an attachment to the reel. wheel. The CTD profiler is lowered parameter characterizing directivity is The hook sizes used are 8/0, 11/0, or 15/ through the water column on a cable, the beam width, defined as the angle 0 circle hooks with 0 offset. and CTD data are collected either within subtended by diametrically opposite Traps and pots—Traps and pots are the device or via a cable connecting to ‘‘half power’’ (-3 dB) points of the main submerged, three-dimensional devices, the ship. The data from a suite of lobe. For different transducers at a often baited, that permit organisms to samples collected at different depths are single operating frequency, the beam enter the enclosure but make escape often called a depth profile, and are width can vary from 180 ° (almost extremely difficult or impossible. Most plotted with the value of the variable of omnidirectional) to only a few degrees. traps are attached by a rope to a buoy interest on the x-axis and the water Transducers are usually produced with on the surface of the water and may be depth on the y-axis. Depth profiles for either circular or rectangular active deployed in series. The trap entrance different variables can be compared in surfaces. For circular transducers, the can be regulated to control the order to glean information about beam width in the horizontal plane maximum size of animal that can enter, physical, chemical, and biological (assuming a downward pointing main and the size of the mesh in the body of processes occurring in the water beam) is equal in all directions, whereas the trap can regulate the minimum size column. rectangular transducers produce more that is retained. In general, the species Remotely Operated Vehicle—The complex beam patterns with variable caught depends on the type and Super Phantom S2 (Figure A–26) is a beam width in the horizontal plane. In characteristics of the pot or trap used. powerful, versatile remotely operated general, the more narrow the beam, the The SEFSC uses fyke nets and various vehicle (ROV) with high reliability and shorter distance to which the sound types of small traps and cages. mobility. This light weight system can propagates. 1. Fyke nets—A fyke net is a fish trap be deployed by two operators and is The types of active sources employed that consists of cylindrical or cone- designed as an underwater platform in fisheries acoustic research and shaped netting bags that are mounted on which provides support services monitoring may be considered in two rings or other rigid structures and fixed including color video, digital still broad categories here (Category 1 and on the bottom by anchors, ballast or photography, navigation instruments, Category 2), based largely on their stakes (Figure A–19). Fyke traps are laser scaling device, lights, position respective operating frequency (i.e., often outfitted with wings and/or information of the ROV and support within or outside the known audible leaders to guide fish towards the ship, vehicle heading, vehicle depth, range of marine species) and other entrance of the bags. The Fyke nets used and a powered tilt platform. The Mini output characteristics (e.g., signal by the SEFSC are constructed with ROV is used during the SEFSC Panama duration, directivity). As described

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below, these operating characteristics reaction by marine mammals to acoustic detected by odontocete cetaceans and result in differing potential for acoustic signals at frequencies above 180 kHz. high frequency specialists. Category 2 impacts on marine mammals. These studies generally indicate only sources are described further in detail Before identifying the active acoustic that sub-harmonics could be detectable below because, unlike Category 1 sources used by the SEFSC, we further by certain species at distances up to sources, they have the potential to take describe scientific sonar sound source several hundred meters. However, this a marine mammal by Level B characteristics here relevant to our detectability is in reference to ambient (behavioral) harassment. analysis. Specifically, we look at the noise, not any harassment threshold for The acoustic system used during a following two ways to characterize assessing the potential for Level B particular survey is optimized for sound: By its temporal (continuous or incidental take for these sources. Source surveying under specific environmental intermittent) and its pulse properties levels of the secondary peaks conditions (e.g., depth and bottom type). (i.e., impulsive or non-impulsive). considered in these studies—those Lower frequencies of sound travel Continuous sounds are those whose within the hearing range of some marine further in the water than in air but sound pressure level remains above that mammals—range from 135–166 dB, provide lower resolution (i.e., are less of the ambient sound, with negligibly meaning that these sub-harmonics precise). Pulse width and power may small fluctuations in level (NIOSH, would either be below the threshold for also be adjusted in the field to 1998; ANSI, 2005), while intermittent behavioral harassment (160 dB) or accommodate a variety of sounds are defined as sounds with would attenuate to such a level within environmental conditions. Signals with interrupted levels of low or no sound a few meters. Beyond these important a relatively long pulse width travel (NIOSH, 1998). study details, these high-frequency (i.e., further and are received more clearly by Sounds can also be characterized as Category 1) sources and any energy they the transducer (i.e., good signal-to-noise either impulsive or non-impulsive. may produce below the primary ratio) but have a lower range resolution. Impulsive sounds are typically frequency that could be audible to Shorter pulses provide higher range transient, brief (< 1 sec), broadband, and marine mammals would be dominated resolution and can detect smaller and consist of a high peak pressure with by a few primary sources that are more closely spaced objects in the rapid rise time and rapid decay (ANSI, operated near-continuously, and the water. Similarly, higher power settings 1986; NIOSH, 1998). Impulsive sounds, potential range above threshold would may decrease the utility of collected by definition, are intermittent. Non- be so small as to essentially discount data. Power level is also adjusted impulsive sounds can be broadband, them. Therefore, Category 1 sources are according to bottom type, as some narrowband or tonal, brief or prolonged, not expected to have any effect on bottom types have a stronger return and and typically do not have a high peak marine mammals and are not require less power to produce data of sound pressure with rapid rise/decay considered further in this document. sufficient quality. Power is typically set time that impulsive sounds do (ANSI Category 2 acoustic sources, which to the lowest level possible in order to 1995; NIOSH 1998). Non-impulsive would be present on many vessels receive a clear return with the best data. sounds can be intermittent or operating under this rulemaking include Survey vessels may be equipped with continuous. Scientific sonars, such as a variety of single, dual, and multi-beam multiple acoustic systems; each system the ones used by the SEFSC, are echosounders (many with a variety of has different advantages that may be characterized as intermittent and non- modes), sources used to determine the utilized depending on the specific impulsive. Discussion on the orientation of trawl nets, and several survey area or purpose. In addition, appropriate harassment threshold current profilers with lower output many systems may be operated at one of associated with these types of sources frequencies than Category 1 sources. two frequencies or at a range of based on these characteristics can be Category 2 active acoustic sources have frequencies. Characteristics of these found in the Estimated Take section. moderate to high output frequencies (10 sources are summarized in Table 2. Category 1 active fisheries acoustic to 180 kHz) that are generally within the 1. Multi-Frequency Narrow Beam sources include those with high output functional hearing range of marine Scientific Echosounders (Simrad frequencies (>180 kHz) that are outside mammals and therefore have the EK60)—Echosounders and sonars work the known functional hearing capability potential to cause behavioral by transmitting acoustic pulses into the of any marine mammal. Example harassment. However, while likely water that travel through the water Category 1 sources include short range potentially audible to certain species, column, reflect off the seafloor, and echosounders and acoustic Doppler these sources have generally short ping return to the receiver. Water depth is current profilers). These sources also durations and are typically highly measured by multiplying the time generally have short duration signals directional (i.e., narrow beam width) to elapsed by the speed of sound in water and highly directional beam patterns, serve their intended purpose of (assuming accurate sound speed meaning that any individual marine mapping specific objects, depths, or measurement for the entire signal path), mammal would be unlikely to even environmental features. These while the returning signal itself carries detect a signal. characteristics reduce the likelihood information allowing ‘‘visualization’’ of While sounds that are above the and or spatial extent of an animal the seafloor. Multi-frequency split-beam functional hearing range of marine receiving or perceiving the signal. In sensors are deployed from SEFSC animals may be audible if sufficiently addition, sources with relatively lower survey vessels to acoustically map the loud (e.g., M

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acoustic survey activity, ranging from horizontally in the water column as well waves it receives is called the Doppler studies of small plankton to large fish as straight down. Multibeam shift. The instrument uses this shift to schools in a variety of environments echosounders and sonars are used for calculate how fast the particle and the from shallow coastal waters to deep mapping seafloor bathymetry, water around it are moving. Sound ocean basins. Simultaneous use of estimating fish biomass, characterizing waves that hit particles far from the several discrete echosounder fish schools, and studying fish behavior. profiler take longer to come back than frequencies facilitates accurate estimates The multi-beam echosounders used by waves that strike close by. By measuring of the size of individual fish and can the SEFSC emit frequencies in the 70– the time it takes for the waves to return also be used for species identification 120 kHz range. to the sensor and the Doppler shift, the based on differences in frequency- 3. Acoustic Doppler Current Profiler profiler can measure current speed at dependent acoustic backscattering (ADCP)—An ADCP is a type of sonar many different depths with each series between species. The SEFSC uses used for measuring water current of pings (WHOI 2011). devices that transmit and receive at six velocities simultaneously at a range of frequencies from 18 to 333 kHz. depths. It can be mounted to a mooring 4. Trawl Monitoring Systems (Simrad 2. Multibeam Echosounder and or to the bottom of a boat. The ADCP ITI)—Trawl monitoring systems allow Sonars (Simrad ME70, MS70, SX90)— works by transmitting ‘‘pings’’ of sound continuous monitoring of net Multi-beam echosounders and sonars at a constant frequency into the water. dimensions during towing to assess work by transmitting acoustic pulses As the sound waves travel, they ricochet consistency, maintain quality control, into the water then measuring the time off particles suspended in the moving and provide swept area for biomass required for the pulses to reflect and water and reflect back to the instrument calculations. Transponders are typically return to the receiver and the angle of (WHOI 2011). Sound waves bounced located in various positions on the trawl the reflected signal. However, the use of back from a particle moving away from or cables connecting the trawl to the multiple acoustic ‘‘beams’’ allows the profiler have a slightly lowered ship. Data are monitored in real time to coverage of a greater area compared to frequency when they return and make adjustments in ship speed or single beam sonar. The sensor arrays for particles moving toward the instrument depth of trawl to meet survey protocols. multibeam echosounders and sonars are send back higher frequency waves. The This system operates in the 27- 33 kHz usually mounted on the keel of the difference in frequency between the range, below the functional hearing vessel and have the ability to look waves the profiler sends out and the range of all marine mammals. TABLE 2—OPERATING CHARACTERISTICS OF SEFSC ACTIVE ACOUSTIC SOURCES

Effective exposure Effective exposure Operating Maximum source area: area: Active acoustic system frequencies level (dB re: 1μPa Nominal beamwidth Sea surface to Sea surface to (kHz) @1 m) 200 m depth 160 dB threshold (km2) depth (km2)

Simrad EK60 narrow beam echosounder ...... 18, 38, 70, 224 11 ° @18 kHz, 7 ° @38 kHz 0.0142 0.1411 120, 200*, 333* Simrad ME70 multibeam echosounder ...... 70–120 205 140 ° 0.0201 0.0201 Teledyne RD Instruments ADCP, Ocean Sur- veyor ...... 75 223.6 N/A 0.0086 0.0187 Simrad EQ50 ...... 50, 200* 210 16 @50kHz, 7 @200kHz 0.0075 0.008 Simrad ITI Trawl Monitoring System ...... 27–33 <200 40 ° × 100 ° 0.0032 0.0032 * Devices working at this frequency is outside of known marine mammal hearing range and is not considered to have the potential to result in marine mammal harassment.

SEFSC Vessels Used for Survey all vessels over 65 ft used during Texas Water Development Board, and Activities fisheries research. Texas Commission on Environmental Quality), universities, non-governmental The SEFSC and its research partners TPWD Gillnet Research organizations, and the private sector. use a variety of different types and sizes TPWD conducts a long-term The current sampling protocol began of vessels to meet their needs and standardized fishery-independent in the spring of 1983 for seven of the ten objectives. Vessels may be owned and monitoring program to assess the bay systems; the remaining three bay operated by NMFS, owned and operated relative abundance and size of finfish systems were gradually added. The by the cooperative partners, or and shellfish in Texas bays. TPWD is number of gill net sets was standardized chartered. Vessels vary in size, mandated by the Texas Legislature to in 1985. The monitoring program including, small fishing vessels (U.S. conduct continuous research and study utilizes a stratified random sample Coast Guard [USCG] Class A—up to 16 the supply, economic value, design, with each bay system as an ft. and Class I—16 to <26 ft.), medium environment, and breeding habits of the independent stratum. Gill net sample vessels (USCG Class II—26 to <40 ft. various species of finfish, shrimp and locations are randomly selected from and Class III—40 to 65 ft.), USCG Small oysters under Parks and Wildlife Code grids (1 minute latitude by 1 minute Research Vessel (R/V) (>65 ft. and <300 sections 66.217, 76.302 and 77.004. longitude), with each selected grid gross tons) and USCG Research Vessel Results from this program are primarily further subdivided into 144 5-second (R/V) (>65 ft. and >300 gross tons). used by the agency to manage Texas’ gridlets. Sample sites are then randomly Several Motor Vessels (M/V) >65 feet marine finfish and shellfish resources. selected from gridlets containing less and USCG Research Vessels are also Data are also available for use by other than 15.2 m of shoreline. chartered and used by partner agencies. agencies (e.g., USFWS, Gulf of Mexico TPWD utilizes gill nets to conduct Please see Appendix A of the SEFSC’s Fishery Management Council, Gulf fishery-independent modeling on Draft PEA for detailed information on States Marine Fisheries Commission, relative abundance, diversity, and age

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and size distributions of adult and the net, TPWD pulls it as taut as visually and many observations are subadult finfish in Texas waters. possible with one person pulling on the ambiguous. For example, NMFS’ Samples collected also provide data for net while the anchor is set. Atlantic SARs assess Mesoplodon spp. genetic, life history and age and growth Gill nets are set overnight during each and Kogia spp. as guilds. Here, we analyses. Statistically, gill nets provide spring and fall season. The spring consider pilot whales, beaked whales for the lowest variability and the best season begins with the second full week (excluding the northern bottlenose fishery-independent measure of adult in April and extends for ten weeks. The whale), and Kogia spp. as guilds. That and subadult finfish abundance with a fall season begins with the second full is, where not otherwise specified, low coefficient of variation for most week in September and extends for ten references to ‘‘pilot whales’’ includes species requiring a low sample size. weeks. Nets are set within one hour both the long-finned and short-finned Standardized sampling methods have before sunset and retrieved within 4 pilot whale, ‘‘beaked whales’’ includes low operational bias allowing hours after the following sunrise. Soak the Cuvier’s, Blainville’s, Gervais, comparison between and among bay times vary from approximately 12–14 Sowerby’s, and True’s beaked whales, systems and years. hours. Gill nets are set overnight to and ‘‘Kogia spp.’’ includes both the Gill nets are typically set in shallow eliminate day-use disturbances (boaters dwarf and pygmy sperm whale. open bay systems with little to no tidal running the shoreline) that can alter Table 3a lists all species (n = 33) with movement. In this type of system, long normal fish behavior and movement expected potential for occurrence in gill net soak times are needed to catch patterns, reduce the amount of ARA, GOMRA, and CRA and a statistically-significant number of fish. disturbance by and to anglers and summarizes information related to the The average number of fish caught in boaters (user conflicts), and increase population or stock, including the overnight gill net sets is 90 fish per boater safety (reduced likelihood of regulatory status under the MMPA and gill net which equates to 1 fish per 27 striking nets). TPWD sets two to three ESA and potential biological removal ft2 or 6.7 ± 0.07 fish per hour (CPUE) of nets on two separate nights for each of (PBR), where known. PBR is defined by all species per hour. CPUE for two the 10 bay systems where they fish the MMPA as the maximum number of important recreational species, red which are separated by at least 1 km and animals, not including natural drum and spotted seatrout, is 0.97 ± .02 usually miles apart. No more than one mortalities, that may be removed from a and 0.68 ± .01 respectively. gill net is set in the same grid on the marine mammal stock while allowing Each gillnet is 183 m (600 ft) long, 1.2 same night, nor set more than two times that stock to reach or maintain its m (3 ft) deep, and comprised of four 45 in the same grid in a season. Fishing optimum sustainable population (as m (150 ft) long panels. Each panel is a effort is evenly distributed between described in NMFS’ SARs). The use of different sized mesh: 7.6 cm (3 in.), 10.2 spring and fall season. Up to 90 sets per PBR in this analysis is described in later cm (4 in.), 12.7 cm (5 in.), and 15.2 cm area could occur each year the proposed detail in the Negligible Impact Analyses (6 in.) to capture different sized fish. regulations would be valid. This and Determination section. Excluding Each panel is sewn to the next panel; sampling rate proposed for the next five bottlenose dolphins, species with therefore, there are no gaps between years is identical to past sampling potential occurrence in the ARA and panels. Currently, the float line and net efforts. GOMRA constitute 56 managed stocks mesh are tied together at 8 in. intervals. under the MMPA. Bottlenose dolphins Description of Marine Mammals in the This results in a 6–8 in gap between the contribute an additional 17 stocks in the Area of the Specified Activity float line and the mesh when the net is ARA (1 offshore, 5 coastal, and 11 set. TPWD will modify this design so Sections 3 and 4 of the SEFSC’s estuarine), 36 stocks in the GOMRA (1 that the float line and net mesh are tied application summarize available offshore, 1 continental shelf, 3 coastal, together at 4 in. intervals. This will information regarding status and trends, and 31 bays, sounds, and estuaries reduce the gap to approximately one to distribution and habitat preferences, (BSE)), and 1 stock in the CRA for a total two inches. This gear modification and behavior and life history, of the of 54 bottlenose dolphin stocks. In total, would also be done for the lead line to potentially affected species. Additional 110 stocks have the potential to occur in reduce gaps between the lead line and information regarding population trends the SEFSC research area. net mesh. Reducing gaps between the and threats may be found in NMFS’ Species that could occur in a given lines and mesh are designed to Stock Assessment Reports (SAR; https:// research area but are not expected to minimize the potential of a dolphin www.fisheries.noaa.gov/national/ have the potential for interaction with getting its pectoral fins or flukes caught marine-mammal-protection/marine- SEFSC research gear or that are not in these gaps. mammal-stock-assessment-reports- likely to be harassed by SEFSC’s use of Gill nets are set perpendicular to the region) and more general information active acoustic devices are listed here shoreline with the smaller mesh end (3″ about these species (e.g., physical and but omitted from further analysis. These mesh panel) of the net anchored to the behavioral descriptions) may be found include extralimital species, which are shoreline and the progressively larger on NMFS’ website (https:// species that do not normally occur in a mesh (up to 6″ mesh panel) extending www.fisheries.noaa.gov/find-species). given area but for which there are one baywards for 600 ft. All gill net are set Additional species and stock or more occurrence records that are in water depths ranging from 0.0–1.1 m information can be found in NMFS’ considered beyond the normal range of on the shallow end of the net and from Draft PEA (https:// the species. Extralimital or rarely 0.1–4.6 m (0.33 to 15 ft) on the deep end www.fisheries.noaa.gov/node/23111). In sighted species within the SEFSC’s ARA of the net. However, 86 percent of gill some cases, species are treated as guilds. include the North Atlantic bottlenose net sets occur at a deep-end depth of 1.5 In general ecological terms, a guild is a whale (Hyperoodon ampullatus), m (4 ft) or less. Where depths are greater group of species that have similar Bryde’s whale (B. edeni), Atlantic white- than 4 ft, the top of the gillnet will be requirements and play a similar role sided dolphins (Lagenorhynchus submerged because it is only 3 ft high. within a community. However, for acutus), white-beaked dolphins A marker bouy is typically attached to purposes of stock assessment or (Lagenorhynchus albirostris), Sowerby’s the float line at the intersection of each abundance prediction, certain species beaked whale (Mesoplodon bidens), mesh panel (150 ft) with sufficant length may be treated together as a guild harp seal (Pagophilus groenlandicus), line to reach the surface. When setting because they are difficult to distinguish and hooded seal (Cystophora cristata).

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Extralimital or rarely sighted species in some species, this geographic area may ‘‘communities’’ in the few GOM areas the GOMRA include the North Atlantic extend beyond U.S. waters. For some that have been studied (Waring et al. right whale (Eubalaena glacialis), blue species, survey abundance (as compared 2007). This finding was then whale, fin whale (B. physalus), sei to stock or species abundance) is the generalized to all enclosed inshore GOM whale, minke whale (B. acutorostrata), total number of individuals estimated waters where bottlenose dolphins exist. humpback whale (Megaptera within the survey area, which may or A ‘‘community’’ consists of resident novaeangliae), and Sowerby’s beaked may not align completely with a stock’s dolphins that regularly share large whale. In the CRA, extralimital or rarely geographic range as defined in the portions of their ranges, and interact sighted species include blue whale, fin SARs. These surveys may also extend with each other to a much greater extent whale, sei whale, Bryde’s whale, minke beyond U.S. waters. than with dolphins in adjacent waters. whale, harbor seal (Phoca vitulina), gray To provide a background for how The term emphasizes geographic, and seal (Halichoerus grypus), harp seal, and estuarine bottlenose dolphin stocks are social relationships of dolphins. hooded seal. In addition, Caribbean identified, we provide the following Bottlenose dolphin communities do not excerpt from the Bottlenose Dolphin manatees (Trichechus manatus) may be necessarily constitute closed Stock Structure Research Plan for the found in all three research areas. demographic populations, as Central Northern Gulf of Mexico However, manatees are managed by the individuals from adjacent communities (NMFS, 2007) which more specifically U.S. Fish and Wildlife Service and are may interbreed. not considered further in this document. describes the stock structure of Marine mammal abundance estimates bottlenose dolphins within the bays, All values presented in Table 3a and presented in this document represent sounds, and estuaries of the Gulf of 3b are the most recent available at the the total number of individuals that Mexico: The distinct stock status for time of publication and are available in make up a given stock or the total each of the 31 inshore areas of the most recent SAR for that stock, number estimated within a particular contiguous, enclosed, or semi-enclosed including draft 2018 SARs (Hayes et al., study or survey area. NMFS’ stock bodies of waters is community-based. 2018) available at https:// abundance estimates for most species That is, stock delineation is based on www.fisheries.noaa.gov/national/ represent the total estimate of the finding, through photo- marine-mammal-protection/draft- individuals within the geographic area, identification (photo-ID) studies, of marine-mammal-stock-assessment- if known, that comprises that stock. For relatively discrete dolphin reports) . TABLE 3a—MARINE MAMMALS POTENTIALLY PRESENT IN THE ATLANTIC, GULF OF MEXICO, AND CARIBBEAN RESEARCH AREAS DURING FISHERY RESEARCH

Research area ESA status (L/NL), Stock abundance (CV, 3 Annual M/ Common name Scientific name MMPA stock 2 PBR 4 MMPA Nmin) SI ARA GOM CRA strategic (Y/N) 1

Order Cetartiodactyla—Cetacea—Suborder Mysticeti (baleen whales)

Family Balaenopteridae (rorquals): North Atlantic right Eubalaena glacialis .... Western North Atlantic X ...... L, Y 451 (0, 445) ...... 0.9 5.56 whale. Humpback whale Megaptera Gulf of Maine 5 ...... X X X NL, Y 896 (0, 896 ) ...... 14.6 9.8 novaeangliae. Blue whale ...... Balaenoptera Western North Atlantic X ...... L, Y unk (unk, 440, 2010) 0.9 unk musculus. Fin whale ...... Balaenoptera physalis Western North Atlantic X ...... L, Y 1,618 (0.33, 1,234) .... 2.5 2.65 Minke whale ...... Balaenoptera Canadian East Coast X X X NL, N 2,591 (0.81, 1,425) .... 14 7.5 acutorostrata. Bryde’s whale ...... Balaenoptera edeni .... Northern Gulf of Mex- ...... X ...... NL,6 Y 33 (1.07, 16) ...... 0.03 0.7 ico. Sei whale ...... Balaenoptera borealis Nova Scotia ...... X ...... L, Y 357 (0.52, 236) ...... 0.5 0.6

Order Cetartiodactyla—Cetacea—Suborder Odontoceti (toothed whales)

Family Physeteridae: Sperm whale ...... Physeter North Atlantic ...... X ...... L, Y 2,288 (0.28,1,815) ..... 3.6 0.8 macrocephalus. Northern Gulf of Mex- ...... X ...... L, Y 763 (0.38, 560) ...... 1.1 0 ico. Puerto Rico and U.S...... X L, Y unk ...... unk unk Virgin Islands. Family Kogiidae: Pygmy sperm Kogia breviceps ...... Western North Atlantic X ...... X NL, N 3,785 (0.47, 2,598) 7 .. 21 3.5 whale. Northern Gulf of Mex- ...... X ...... NL, N 186 (1.04, 90) 8 ...... 0.9 0.3 ico. Dwarf sperm K. sima ...... Western North Atlantic X ...... X NL, N 3,785 (0.47, 2,598) 7 .. 21 3.5 whale. Northern Gulf of Mex- ...... X ...... NL, N 186 (1.04, 90) 8 ...... 0.9 0 ico. Family Ziphiidae (beaked whales): Cuvier’s beaked Ziphius cavirostris ...... Western North Atlantic X ...... NL, N 6,532 (0.32, 5,021) .... 50 0.4 whale.

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TABLE 3a—MARINE MAMMALS POTENTIALLY PRESENT IN THE ATLANTIC, GULF OF MEXICO, AND CARIBBEAN RESEARCH AREAS DURING FISHERY RESEARCH—Continued

Research area ESA status (L/NL), Stock abundance (CV, 3 Annual M/ Common name Scientific name MMPA stock 2 PBR 4 ARA GOM CRA MMPA Nmin) SI strategic (Y/N) 1

Northern Gulf of Mex- ...... X ...... NL, N 74 (1.04, 36) ...... 0.4 0 ico. Puerto Rico and U.S...... X NL, N Unk ...... unk unk Virgin Islands. Blainville’s beaked Mesoplodon Western North Atlantic X ...... X NL, N 7,092 (0.54, 4,632) 9 .. 46 0.2 whale. densirostris. Northern Gulf of Mex- ...... X ...... NL, N 149 (0.91, 77) ...... 0.8 0 ico. Gervais’ beaked Mesoplodon Western North Atlantic X ...... X NL, N 7,092 (0.54, 4,632) 9 .. 46 0 whale. europaeus. Northern Gulf of Mex- ...... X ...... NL, N 149 (0.91, 77) ...... 0.8 0 ico. Sowerby’s beaked Mesoplodon bidens .... Western North Atlantic X ...... X NL, N 7,092 (0.54, 4,632) 9 .. 46 0 whale. True’s beaked Mesoplodon mirus ..... Western North Atlantic X ...... X NL, N 7,092 (0.54, 4,632) 9 .. 46 0 whale. Family Delphinidae (dolphins): Melon-headed Peponocephala Western North Atlantic X ...... X NL, N unk ...... unk 0 whales. electra. Northern Gulf of Mex- ...... X ...... NL, N 2,235 (0.75, 1,274) .... 13 0 ico. Risso’s dolphin .... Grampus griseus ...... Western North Atlantic X ...... X NL, N 18,250 (0.46, 12,619) 126 49.9 Northern Gulf of Mex- ...... X ...... NL, N 2,442 (0.57, 1,563) .... 16 7.9 ico. Short-finned pilot Globicephala Western North Atlantic X ...... NL, N 28,924 (0.24, 23,637) 236 168 whales. macrorhynchus. Northern Gulf of Mex- ...... X ...... NL, N 2,415 (0.66, 1,456) .... 15 0.5 ico. Puerto Rico and U.S...... X NL, N unk ...... unk unk Virgin Islands. Long-finned pilot Globicephala melas ... Western North Atlantic X ...... NL, N 5,636 (0.63, 3,464) .... 35 27 whales.

Bottlenose dolphin Tursiops truncatus ..... See table 3b.

Common dolphin Delphinus delphis ...... Western North Atlantic X ...... NL, N 70,184 (0.28, 55,690) 557 406 Atlantic spotted Stenella frontalis ...... Western North Atlantic X ...... NL, N 44,715 (0.43, 31,610) 316 0 dolphin. Northern Gulf of Mex- ...... X ...... NL, N unk ...... unk 42 ico. Puerto Rico and U.S...... X NL, N unk ...... unk unk Virgin Islands. Pantropical spot- Stenella attenuata ...... Western North Atlantic X ...... X NL, N 3,333 (0.91, 1,733) .... 17 0 ted dolphin. Northern Gulf of Mex- ...... X ...... 50,880 (0.27, 40,699) 407 4.4 ico. Striped dolphin .... Stenella coeruleoalba Western North Atlantic X ...... X NL, N 54,807 (0.3, 42,804) .. 428 0 Northern Gulf of Mex- ...... X ...... NL, N 1,849 (0.77, 1,041) .... 10 0 ico. Fraser’s dolphin .. Lagenodelphis hosei .. Western North Atlantic X ...... X NL, N unk ...... unk 0 Gulf of Mexico ...... X ...... NL, N unk ...... undet 0 Rough-toothed Steno bredanensis ..... Western North Atlantic X ...... X NL, N 136 (1.0, 67) ...... 0.7 0 dolphin. Northern Gulf of Mex- ...... X ...... NL, N 624 (0.99, 311) ...... 2.5 0.8 ico. Clymene dolphin Stenella clymene ...... Western North Atlantic X ...... X NL, N unk ...... undet 0 Northern Gulf of Mex- ...... X ...... NL, N 129 (1.0, 64) ...... 0.6 0 ico. Spinner dolphin ... Stenella longirostris ... Western North Atlantic X ...... NL, N unk ...... unk 0 Northern Gulf of Mex- ...... X ...... NL, N 11,441 (0.83, 6,221) .. 62 0 ico. Puerto Rico and U.S...... X NL, N unk ...... unk unk Virgin Islands. Killer whale ...... Orcinus orca ...... Western North Atlantic X ...... X NL, N unk ...... unk 0 Northern Gulf of Mex- ...... X ...... NL, N 28 (1.02, 14) ...... 0.1 0 ico. Pygmy killer Feresa attenuata ...... Western North Atlantic X ...... X NL, N unk ...... unk 0 whale. Northern Gulf of Mex- ...... X ...... NL, N 152 (1.02, 75) ...... 0.8 0 ico. False killer whale Pseudorca crassidens Western North Atlantic X ...... X NL, N 442 (1.06, 212) ...... 2.1 unk Northern Gulf of Mex- ...... X ...... NL, N unk ...... undet 0 ico. Family Phocoenidae (porpoises):

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TABLE 3a—MARINE MAMMALS POTENTIALLY PRESENT IN THE ATLANTIC, GULF OF MEXICO, AND CARIBBEAN RESEARCH AREAS DURING FISHERY RESEARCH—Continued

Research area ESA status (L/NL), Stock abundance (CV, 3 Annual M/ Common name Scientific name MMPA stock 2 PBR 4 ARA GOM CRA MMPA Nmin) SI strategic (Y/N) 1

Harbor porpoise .. Phocoena phocoena Gulf of Maine/Bay of X ...... NL, N 79,833 (0.32, 61,415) 706 255 vomerina. Fundy.

Order Carnivora—Superfamily Pinnipedia

Family Phocidae (ear- less seals):

Harbor seal ...... Phoca vitulina richardii Western North Atlantic X ...... NL, N 75,834 (0.15, 66,884) 2,006 345 Gray seal ...... Halichoerus grypus .... Western North Atlantic X ...... NL, N 27,131 (0.19, 23,158) 1,389 5,688 1 Endangered Species Act (ESA) status: Endangered (E), Threatened (T)/MMPA status: Depleted (D). NL indicates that the species is not listed under the ESA and is not designated as depleted 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 des- ignated under the MMPA as depleted and as a strategic stock. 2 NMFS marine mammal stock assessment reports at: www.nmfs.noaa.gov/pr/sars/. CV is coefficient of variation; Nmin is the minimum estimate of stock abun- dance.). 3 PBR indicates Potential Biological Removal as referenced from NMFS 2017 SARs. PBR is defined by the MMPA as the maximum number of animals, not includ- ing natural mortalities, that may be removed from a marine mammal stock while allowing that stock to reach or maintain its optimum sustainable population. It is the product of minimum population size, one-half the maximum net productivity rate and a recovery factor for endangered, depleted, threatened stocks, or stocks of un- known status relative to OSP. 4 These values, found in NMFS’ SARs, represent annual levels of human-caused mortality plus serious injury from all sources combined (e.g., commercial fisheries, subsistence hunting, ship strike). Annual M/SI often cannot be determined precisely and is in some cases presented as a minimum value. All M/SI values are as pre- sented in the 2016 SARs. 5 Humpback whales present off the southeastern U.S. are thought to be predominantly from the Gulf of Maine stock; however, could include animals from Canadian stocks (e.g., Nova Scotia) (NMFS, 2017). Here we provide estimates for the Gulf of Maine stock only as a conservative value. 6 The Bryde’s whale is proposed for listing under the ESA (81 FR 88639, December 8, 2016). NMFS decision is pending. 7 This estimate includes both dwarf and pygmy sperm whales in the N. Atlantic stock. 8 This estimate includes both dwarf and pygmy sperm whales in the Gulf of Mexico stock. 9 This estimate includes all species of Mesoplodon in the N.Atlantic stock.

TABLE 3b—BOTTLENOSE DOLPHIN STOCKS POTENTIALLY PRESENT IN THE ATLANTIC, GULF OF MEXICO, AND CARIBBEAN RESEARCH AREAS DURING FISHERY RESEARCH

Stock abundance (CV, Stock MMPA status 1 PBR Annual M/SI Nmin)

ATLANTIC RESEARCH AREA

Western North Atlantic, Offshore ...... Not Strategic ...... 77,532 (0.40, 56,053) 561 39.4 Northern Migratory Coastal ...... Depleted ...... 6,639 (0.41, 4,759) 48 6.1–13.2 Southern Migratory Coastal ...... Depleted ...... 3,751 (0.06, 2,353) 23 0–14.3 South Carolina & Georgia Coastal ...... Depleted ...... 6,027 (0.34, 4,569) 46 1.4–1.6 Northern Florida Coastal ...... Depleted ...... 877 (0.0.49, 595) 6 0.6 Central Florida Coastal ...... Depleted ...... 1,218 (0.71, 2,851) 9.1 0.4 Northern North Carolina Estuarine System ...... Strategic ...... 823 (0.06, 782) 7.8 0.8–18.2 Southern North Carolina Estuarine System ...... Strategic ...... unk Undet 0.4–0.6 Northern South Carolina Estuarine System ...... Strategic ...... unk Undet 0.2 Charleston Estuarine System ...... Strategic ...... unk Undet unk Northern Georgia/Southern South Carolina Estuarine Strategic ...... unk undet 1.4 System. Central Georgia Estuarine System ...... Strategic ...... 192 (0.04, 185) 1.9 unk Southern Georgia Estuarine System ...... Strategic ...... 194 (0.05, 185) 1.9 unk Jacksonville Estuarine System ...... Strategic ...... unk undet 1.2 Biscayne Bay ...... Strategic ...... unk undet unk Florida Bay ...... Not Strategic ...... unk undet unk

GULF OF MEXICO RESEARCH AREA

Oceanic ...... Not Strategic ...... 5,806 (0.39, 4,230) 42 6.5 Continental Shelf ...... Not Strategic ...... 51,192 (0.1, 46,926) 469 0.8 Western Coastal ...... Not Strategic ...... 20,161 (0.17, 17,491) 175 0.6 Northern Coastal ...... Not Strategic ...... 7,185 (0.21, 6,004) 60 0.4 Eastern Coastal ...... Not Strategic ...... 12,388 (0.13, 11,110) 111 1.6

Northern Gulf of Mexico Bay, Sound, and Estuary 23

Laguna Madre ...... Strategic ...... 80 (1.57, unk) undet 0.4 Nueces Bay, Corpus Christi Bay ...... Strategic ...... 58 (0.61, unk) undet 0 Copano Bay, Aransas Bay, San Antonio Bay, Redfish Strategic ...... 55 (0.82, unk) undet 0.2 Bay, Espirtu Santo Bay. Matagorda Bay, Tres Palacios Bay, Lavaca Bay ...... Strategic ...... 61 (0.45, unk) undet 0.4 West Bay ...... Strategic ...... 48 (0.03, 46) 0.5 0.2

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TABLE 3b—BOTTLENOSE DOLPHIN STOCKS POTENTIALLY PRESENT IN THE ATLANTIC, GULF OF MEXICO, AND CARIBBEAN RESEARCH AREAS DURING FISHERY RESEARCH—Continued

Stock abundance (CV, Stock MMPA status 1 PBR Annual M/SI Nmin)

Galveston Bay, East Bay, Trinity Bay ...... Strategic ...... 152 (0.43, unk) undet 0.4 Sabine Lake ...... Strategic ...... 0 (-,-) undet 0.2 Calcasieu Lake ...... Strategic ...... 0 (-,-) undet 0.2 Vermillion Bay, West Cote Blanche Bay, Atchafalaya Strategic ...... 0 (-,-) undet 0 Bay. Terrebonne Bay, Timbalier Bay ...... Strategic ...... 3,870 (0.15, 3426) 27 0.2 Barataria Bay ...... Strategic ...... 2306 (0.09, 2,138) 17 160 Mississippi River Delta ...... Strategic ...... 332 (0.93, 170) 1.4 0.2 Mississippi Sound, Lake Borgne, Bay Boudreau ...... Strategic ...... 3,046 (0.06, 2,896) 23 310 Mobile Bay, Bonsecour Bay ...... Strategic ...... 122 (0.34, unk) undet 1 Perdido Bay ...... Strategic ...... 0 (-,-) undet 0.6 Pensacola Bay, East Bay ...... Strategic ...... 33 ( undet unk Choctawhatchee Bay ...... Strategic ...... 179 (0.04, unk) undet 0.4 St. Andrews Bay ...... Strategic ...... 124 (0.57, unk) undet 0.2 St. Joseph Bay ...... Strategic ...... 152 (0.08, unk) undet unk St. Vincent Sound, Apalachicola Bay, St. Georges Strategic ...... 439 (0.14,-) undet 0 Sound. Apalachee Bay ...... Strategic ...... 491 (0.39, unk) undet 0 Waccasassa Bay, Withlacoochee Bay, Crystal Bay .... Strategic ...... unk undet 0 St. Joseph Sound, Clearwater Harbor ...... Strategic ...... unk undet 0.4 Tampa Bay ...... Strategic ...... unk undet 0.6 Sarasota Bay, Little Sarasota Bay ...... Strategic ...... 158 (0.27, 126) 1.3 0.6 Pine Island Sound, Charlotte Harbor, Gasparilla Strategic ...... 826 (0.09, -) undet 1.6 Sound, Lemon Bay. Caloosahatchee River ...... Strategic ...... 0 (-,-) undet 0.4 Estero Bay ...... Strategic ...... unk undet 0.2 Chokoloskee Bay, Ten Thousand Islands, Gullivan Strategic ...... unk undet 0 Bay. Whitewater Bay ...... Strategic ...... unk undet 0 Florida Keys (Bahia Honda to Key West) ...... Strategic ...... unk undet 0

CARRIBEAN RESEARCH AREA

Puerto Rico and U.S. Virgin Islands ...... Strategic ...... unk undet unk

1 CV is coefficient of variation; Nmin is the minimum estimate of stock abundance). 2 Details for these 25 stocks are included in the report: Common bottlenose dolphin (Tursiops truncatus truncatus), Northern Gulf of Mexico Bay, Sound, and Estuary Stocks. 3 The total annual human-caused mortality and serious injury for these stocks of common bottlenose dolphins is unknown because these stocks may interact with unobserved fisheries. Also, for Gulf of Mexico BSE stocks, mortality estimates for the shrimp trawl fishery are calculated at the state level and have not been included within mortality estimates for individual BSE stocks. Therefore, minimum counts of human-caused mortality and serious injury for these stocks are presented.

Take reduction planning—Incidental insignificant levels approaching a zero requirements vary by geographic area take of marine mammals in commercial serious injury and mortality rate, taking and date. Universal gear modification fisheries has been and continues to be into account the economics of the requirements and restrictions apply to a serious issue in the Southeast region. fishery, the availability of existing all traps/pots and anchored gillnets, In compliance with section 118 of the technology, and existing state or including: no floating buoy line at the MMPA, NMFS has developed and regional fishery management plans. surface; no wet storage of gear (all gear implemented several Take Reduction TRPs relevant to the fisheries research must be hauled out of the water at least Plans (TRPs) to reduce serious injuries areas in this rule include the Atlantic once every 30 days); fishermen are and mortality of strategic marine Large Whale Take Reduction Plan encouraged, but not required, to mammal stocks that interact with (ALWTRP), the Bottlenose Dolphin Take maintain knot-free buoy lines; and all certain commercial fisheries. Strategic Reduction Plan (BDTRP), and the groundlines must be made of sinking stocks are those species listed as Pelagic Longline Take Reduction Plan line. Additional gear modification threatened or endangered under the (PLTRP). The ALWTRP was developed requirements and restrictions vary by ESA, those species listed as depleted to reduce serious injury and mortality of location, date, and gear type. Additional under the MMPA, and those species North Atlantic right, humpback, fin, and requirements may include the use of with human-caused mortality that minke whales from Northeast/Mid- weak links, and gear marking and exceeds the PBR for the species. The Atlantic lobster trap/pot, Atlantic blue configuration specifications. Detailed immediate goal of TRPs is to reduce crab trap/pot, Atlantic mixed species requirements may be found in the serious injury and mortality for each trap/pot, Northeast sink gillnet, regional guides to gillnet and pot/trap species below PBR within six months of Northeast anchored float gillnet, gear fisheries available at http:// the TRP’s implementation. The long- Northeast drift gillnet, Mid-Atlantic www.nero.noaa.gov/Protected/ term goal is to reduce incidental serious gillnet, Southeastern U.S. Atlantic shark whaletrp/. The SEFSC MARMAP/ injury and mortality of marine mammals gillnet, and Southeastern Atlantic SEAMAP–SA Reef Fish Survey (carried from commercial fishing operations to gillnet fisheries (NMFS 2010c). Gear out by the SCDNR) and SEFIS (carried

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out by the SEFSC) surveys meet the and demands immediate response. From effectively these populations can requirements necessary to implement 1991 to present, there have been 62 recover from lower estimated injuries. TRP regulations; both surveys abide by formally recognized UMEs in the U.S., For example, Deepwater Horizon oil all ALWTRP requirements. involving a variety of species and exposure resulted in up to an estimated In 2006, NMFS implemented the dozens to hundreds of individual 7-percent decline in the population of BDTRP to reduce the serious injury and marine mammals per event. Twenty- endangered sperm whales, which will mortality of Western North Atlantic seven of these UMEs have occurred require 21 years to recover. For Bryde’s coastal bottlenose dolphins incidental to within SEFSC fisheries research whales, 48 percent of the population 13 Category I and II U.S. commercial operating areas (we note 7 of these was impacted by Deepwater Horizon oil, fisheries. In addition to multiple non- UMEs were for manatees managed by resulting in up to an estimated 22- regulatory provisions for research and the USFWS). For the GOMRA, Litz et al. percent decline in population that will education, the BDTRP requires (2014) provides a review of historical require 69 years to recover. For both modifications of fishing practices or UMEs in the Gulf of Mexico from 1990 nearshore and offshore populations, gear for small, medium, and large-mesh through 2009. For more information on injuries were most severe in the years gillnet fisheries from New York to UMEs, please visit the internet at: immediately following the spill. Health Florida, and Virginia pound nets in www.nmfs.noaa.gov/pr/health/mmume/ assessments on bottlenose dolphins in Virginia state waters (50 CFR 229.35). events.html. BBES and MS Sound have shown that The BDTRP also established seasonal From 2010 through 2014, NMFS there has been some improvement post closures for certain gillnet commercial declared a multi-year, multi-cetacean spill, but that there are still persistent fisheries in state waters. The following UME in response to the Deepwater injuries (Smith et al. 2017). general requirements are contained with Horizon (DWH) oil spill in the Northern BDTRP: Spatial/temporal gillnet Gulf of Mexico. The species and Biologically Important Areas restrictions, gear proximity (fishermen temporal and spatial boundaries In 2015, NOAA’s Cetacean Density must stay within a set distance of gear), included all cetaceans stranded in and Distribution Mapping Working gear modifications for gillnets and Alabama, Mississippi, and Louisiana Group identified Biologically Important Virginia pound nets, non-regulatory gear from March 2010 through July 2014 and Areas (BIAs) for 24 cetacean species, modifications for crab pots, and other all cetaceans other than bottlenose stocks, or populations in seven regions non-regulatory conservation measures dolphins stranded in the Florida (US East Coast, Gulf of Mexico, West (71 FR 24776, April 26, 2006; 77 FR Panhandle (Franklin County through Coast, Hawaiian Islands, Gulf of Alaska, 45268, July 31, 2012; and 80 FR 6925, Escambia County) from March 2010 Aleutian Islands and Bering Sea, and February 9, 2015). Due to substantial through July 2014. The UME involved Arctic) within U.S. waters through an differences between SEFSC research 1,141 cetacean strandings in the expert elicitation process. BIAs are fishing practices (e.g., smaller gear size, Northern Gulf of Mexico (5 percent reproductive areas, feeding areas, reduced set time, spatial and temporal stranded alive and 95 percent stranded migratory corridors, and areas in which differences) and scientific survey dead). small and resident populations are methods versus commercial fishing The Deepwater Horizon Natural concentrated. BIAs are region-, species- practices, the SEFSC and research Resource Damage Assessment (NRDA) , and time-specific. A description of the partners do not have any surveys that Trustees’ 2016 Final Programmatic types of BIAs found within the SEFSC’s meet the requirements necessary to Damage Assessment and Restoration fishery research areas follows: implement BDTRP regulations. Plan (PDARP) and Final Programmatic Reproductive Areas: Areas and However, the SEFSC would abide by the Environmental Impact Statement (PEIS) months within which a particular mitigation, monitoring, and reporting quantified injuries to marine mammals species or population selectively mates, requirements included in this proposed in the Gulf of Mexico that were exposed gives birth, or is found with neonates or rule. to the oil spill, including bottlenose other sensitive age classes. The Pelagic Longline Take Reduction dolphins in four bay, sound, and estuary Feeding Areas: Areas and months Plan (PLTRP) addresses incidental areas: Barataria Bay, the Mississippi within which a particular species or serious injury and mortality of long- River Delta, Mississippi Sound, and population selectively feeds. These may finned and short-finned pilot whales Mobile Bay (NRDA Trustees, 2016; either be found consistently in space and Risso’s dolphins in commercial DWH MMIQT, 2015). Both stocks are and time, or may be associated with pelagic longline fishing gear in the estimated to have been reduced ephemeral features that are less Atlantic. Regulatory measures include significantly in population size from the predictable but can be delineated and limiting mainline length to 20 nm or DWH oil spill (DWH MMIQT 2015; are generally located within a larger less within the Mid-Atlantic Bight and Schwacke et al. 2017). According to the identifiable area. posting an informational placard on PDARP, 24 percent of the Mississippi Migratory Corridors: Areas and careful handling and release of marine Sound stock had adverse health effects months within which a substantial mammals in the wheelhouse and on from DWH oil spill. Of the pregnant portion of a species or population is working decks of the vessel (NMFS females studied in Barataria Bay and known to migrate; the corridor is 2009). Currently, the SEFSC uses gear Mississippi Sound between 2010 and typically delimited on one or both sides that is only 5 nm long and per the 2014, 19.2 percent gave birth to a viable by land or ice. PLTRP, uses the Pelagic Longline calf. In contrast, dolphin populations in Small and Resident Population: Areas Marine Mammal Handling and Release Florida and South Carolina have a and months within which small and Guidelines for any pelagic longline sets pregnancy success rate of 64.7 percent resident populations occupying a made within the Atlantic EEZ. (DWH MMIQT, 2015). limited geographic extent exist. Unusual Mortality Events (UME)— Dolphin and whale species living The delineation of BIAs does not have The marine mammal UME program was farther offshore were also affected. direct or immediate regulatory established in 1991. A UME is defined Many of these species are highly consequences. Rather, the BIA under the MMPA as a stranding that is susceptible to population changes assessment is intended to provide the unexpected; involves a significant die- because of their low initial population best available science to help inform off of any marine mammal population; numbers. Thus, it is unclear how regulatory and management decisions

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under existing authorities about some, protection goals. In addition, the BIAs their habitat, and ecosystems. Table 4 though not all, important cetacean areas and associated information may be used provides a list of BIA’s found within the in order to minimize the impacts of to identify information gaps and SEFSC’s fisheries research areas. anthropogenic activities on cetaceans prioritize future research and modeling and to achieve conservation and efforts to better understand cetaceans,

TABLE 4—BIOLOGICALLY IMPORTANT AREAS WITHIN THE ARA AND GOMRA

BIA name Species BIA type Time of year Size (km2)

ATLANTIC RESEARCH AREA

Eastern Atlantic ...... N. Atlantic right whale ...... Migration ...... North: March–April; South: 269,448 November–December. Southeast Atlantic—Calving ... N. Atlantic right whale ...... Reproduction ...... Mid-Nov–April ...... 43,783 Northern North Carolina Estu- Bottlenose dolphin ...... Small and resident ...... July–October ...... 8,199 arine System—Inland & Coastal. Northern North Carolina Estu- Bottlenose dolphin ...... Small and resident ...... July–March ...... 534 arine System—Coastal. Southern North Carolina Estu- Bottlenose dolphin ...... Small and resident ...... July–October ...... 783 arine System. Prince Inlet, SC; Charleston Bottlenose dolphin ...... Small and resident ...... Year-round ...... 152 Harbor; North Edisto River. St. Helena Sound, SC to Bottlenose dolphin ...... Small and resident ...... Year-round ...... 676 Ossabaw Sound, GA. Southern Georgia, GA ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 411 Jacksonville, FL ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 195 Indian River Lagoon Estuarine Bottlenose dolphin ...... Small and resident ...... Year-round ...... 776 System. Biscayne Bay, FL ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 614

GULF OF MEXICO

Florida Bay, FL ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 1,527 Lemon Bay, Charlotte Harbor, Bottlenose dolphin ...... Small and resident ...... Year-round ...... 892 Pine Island Sound, FL. Sarasota Bay and Little Sara- Bottlenose dolphin ...... Small and resident ...... Year-round ...... 117 sota Bay, FL. Tampa Bay, FL ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 899 St. Vincent Sound and Apa- Bottlenose dolphin ...... Small and resident ...... Year-round ...... 262 lachicola Bay, FL. St. Joseph Bay, FL ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 371 Mississippi Sound, MS ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 1,335 Caminada Bay and Barataria Bottlenose dolphin ...... Small and resident ...... Year-round ...... 253 Bay, LA. Galveston Bay, TX ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 1,222 San Luis Pass, TX ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 143 Matagorda Bay and Espiritu Bottlenose dolphin ...... Small and resident ...... Year-round ...... 740 Santo Bay, TX. Aransas Pass, TX ...... Bottlenose dolphin ...... Small and resident ...... Year-round ...... 273 Eastern Gulf of Mexico ...... Bryde’s whale ...... Small and resident ...... Year round ...... 23,559

Marine Mammal Hearing hearing ranges on the basis of available implausible and the lower bound from behavioral response data, audiograms Southall et al. (2007) retained. The Hearing is the most important sensory derived using auditory evoked potential functional groups and the associated modality for marine mammals techniques, anatomical modeling, and frequencies are indicated below (note underwater, and exposure to other data. Note that no direct that these frequency ranges correspond anthropogenic sound can have measurements of hearing ability have to the range for the composite group, deleterious effects. To appropriately been successfully completed for with the entire range not necessarily assess the potential effects of exposure reflecting the capabilities of every to sound, it is necessary to understand mysticetes (i.e., low-frequency cetaceans). Subsequently, NMFS (2016) species within that group): the frequency ranges marine mammals • are able to hear. Current data indicate described generalized hearing ranges for Low-frequency cetaceans that not all marine mammal species these marine mammal hearing groups. (mysticetes): Generalized hearing is have equal hearing capabilities (e.g., Generalized hearing ranges were chosen estimated to occur between Richardson et al., 1995; Wartzok and based on the approximately 65 dB approximately 7 Hz and 35 kHz. Ketten, 1999; Au and Hastings, 2008). threshold from the normalized • Mid-frequency cetaceans (larger To reflect this, Southall et al. (2007) composite audiograms, with the toothed whales, beaked whales, and recommended that marine mammals be exception for lower limits for low- most delphinids): Generalized hearing is divided into functional hearing groups frequency cetaceans where the lower estimated to occur between based on directly measured or estimated bound was deemed to be biologically approximately 150 Hz and 160 kHz.

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• High-frequency cetaceans interaction (e.g., entanglement in nets through increased likelihood of (porpoises, river dolphins, and members and trawls, accidental hooking) and collision by pulling whales toward the of the genera Kogia and exposure to active acoustic fisheries vessel (Clyne, 1999; Knowlton et al., Cephalorhynchus; including two research sources. We also include, 1995). In a separate study, Vanderlaan members of the genus Lagenorhynchus, where relevant, knowns takes of marine and Taggart (2007) analyzed the on the basis of recent echolocation data mammals incidental to previous SEFSC probability of lethal mortality of large and genetic data): Generalized hearing is research. These data come from NMFS’ whales at a given speed, showing that estimated to occur between Protected Species Incidental Take the greatest rate of change in the approximately 275 Hz and 160 kHz. (PSIT) database, a formal incidental take probability of a lethal injury to a large • Pinnipeds in water; Phocidae (true reporting system that documents whale as a function of vessel speed seals): Generalized hearing is estimated incidental takes of protected species by occurs between 8.6 and 15 kn. The to occur between approximately 50 Hz all NMFS Science Centers and partners; chances of a lethal injury decline from to 86 kHz. NMFS requires this reporting to be approximately eighty percent at 15 kn to • Pinnipeds in water; Otariidae (eared completed within 48 hours of the approximately twenty percent at 8.6 kn. seals): Generalized hearing is estimated occurrence. The PSIT generates At speeds below 11.8 kn, the chances of to occur between 60 Hz and 39 kHz. automated messages to NMFS staff, lethal injury drop below fifty percent, The pinniped functional hearing alerting them to the event and to the fact while the probability asymptotically group was modified from Southall et al. that updated information describing the increases toward one hundred percent (2007) on the basis of data indicating circumstances of the event has been above 15 kn. that phocid species have consistently entered into the database. In an effort to reduce the number and demonstrated an extended frequency severity of strikes of the endangered range of hearing compared to otariids, Ship Strike North Atlantic right whale (Eubalaena especially in the higher frequency range Vessel collisions with marine glacialis), NMFS implemented speed (Hemila¨ et al., 2006; Kastelein et al., mammals, or ship strikes, can result in restrictions in 2008 (73 FR 60173; 2009; Reichmuth and Holt, 2013). death or serious injury of the animal. October 10, 2008). These restrictions For more detail concerning these Wounds resulting from ship strike may require that vessels greater than or equal groups and associated frequency ranges, include massive trauma, hemorrhaging, to 65 ft (19.8 m) in length travel at less please see NMFS (2016) for a review of broken bones, or propeller lacerations than or equal to 10 kn near key port available information. Thirty three (Knowlton and Kraus, 2001). An animal entrances and in certain areas of right marine mammal species (31 cetacean at the surface may be struck directly by whale aggregation along the U.S. eastern and 2 pinniped (both phocid) species) a vessel, a surfacing animal may hit the seaboard. Conn and Silber (2013) have the reasonable potential to co- bottom of a vessel, or an animal just estimated that these restrictions reduced occur with the proposed survey below the surface may be cut by a total ship strike mortality risk levels by activities (Table 3a). Of the cetacean vessel’s propeller. Ship strikes may kill eighty to ninety percent. species that may be present, six are an animal; however, more superficial For vessels used in SEFSC-related classified as low-frequency cetaceans strikes may result in injury. Ship strikes research activities, transit speeds (i.e., all mysticete species), 24 are generally involve commercial shipping, average 10 kn (but vary from 6–14 kn), classified as mid-frequency cetaceans which is much more common in both while vessel speed during active (i.e., all delphinid and ziphiid species space and time than is research activity. sampling is typically only 2–4 kn. At and the sperm whale), and 1 is Jensen and Silber (2004) summarized sampling speeds, both the possibility of classified as high-frequency cetaceans ship strikes of large whales worldwide striking a marine mammal and the (i.e., harbor porpoise and Kogia spp.). from 1975–2003 and found that most possibility of a strike resulting in collisions occurred in the open ocean serious injury or mortality are Potential Effects of Specified Activities and involved large vessels (e.g., discountable. At average transit speed, on Marine Mammals and Their Habitat commercial shipping). Commercial the probability of serious injury or This section includes a summary and fishing vessels were responsible for mortality resulting from a strike is less discussion of the ways that components three percent of recorded collisions, than fifty percent. However, it is of the specified activity may impact while only one such incident (0.75 possible for ship strikes to occur while marine mammals and their habitat. The percent) was reported for a research traveling at slow speeds. For example, a ‘‘Estimated Take by Incidental vessel during that time period. NOAA-chartered survey vessel traveling Harassment’’ section later in this The severity of injuries typically at low speed (5.5 kn) while conducting document includes a quantitative depends on the size and speed of the multi-beam mapping surveys off the analysis of the number of individuals vessel, with the probability of death or central California coast struck and killed that are expected to be taken by this serious injury increasing as vessel speed a blue whale in 2009. The State of activity. The ‘‘Negligible Impact increases (Knowlton and Kraus, 2001; California determined the whale had Analysis and Determination’’ section Laist et al., 2001; Vanderlaan and suddenly and unexpectedly surfaced considers the content of this section, the Taggart, 2007; Conn and Silber, 2013). beneath the hull, with the result that the ‘‘Estimated Take by Incidental Impact forces increase with speed, as propeller severed the whale’s vertebrae, Harassment’’ section, and the ‘‘Proposed does the probability of a strike at a given and that this was an unavoidable event. Mitigation’’ section, to draw distance (Silber et al., 2010; Gende et This strike represents the only such conclusions regarding the likely impacts al., 2011). Pace and Silber (2005) found incident in approximately 540,000 of these activities on the reproductive the predicted probability of serious hours of similar coastal mapping success or survivorship of individuals injury or death increased from 45 to 75 activity (p = 1.9 × 10¥6; 95% CI = 0– and how those impacts on individuals percent as vessel speed increased from 5.5 x 10¥6; NMFS, 2013). The NOAA are likely to impact marine mammal 10 to 14 kn, and exceeded ninety vessel Gordon Gunter was conducting a species or stocks. percent at 17 kn. Higher speeds during marine mammal survey cruise off the In the following discussion, we collisions result in greater force of coast of Savannah, Georgia in July 2011, consider potential effects to marine impact and appear to increase the when a group of Atlantic spotted mammals from ship strike, gear chance of severe injuries or death dolphin began bow riding. The animals

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eventually broke off and a dead calf was extremely unlikely potential to result in seas driftnets over 2.5 km long in 1991 seen in the ship’s wake with a large gash marine mammal interaction. Gears with (high seas driftnets were previously that was attributed to the propeller. This the potential for marine mammal often 40–60 km long) (Read, 2008; FAO, is the only documented ship strike by interaction include trawl nets (e.g., 2001). the SEFSC since 2002. bottom trawls, skimmer trawls), gillnets, Gear interactions can result in injury In summary, we anticipate that vessel and hook and line gear (i.e., longlines). or death for the animal(s) involved and/ collisions involving SEFSC research Gears such as fyke nets, eel traps, ROVs, or damage to fishing gear. Coastal vessels, while not impossible, represent etc. do not have the potential for marine animals, including various pinnipeds, unlikely, unpredictable events. Other mammal interaction either due to small bottlenose dolphins, and harbor than the 2009 and 2011 events, no other size of gear and fishing methods, and porpoises, are perhaps the most ship strikes have been reported from therefore do not have the potential for vulnerable to these interactions and set any fisheries research activities injury or harassment. or passive fishing gear (e.g., gillnets, nationally. Given the relatively slow Entanglement in Nets, Trawls, or traps) are the most likely to be speeds of research vessels, the presence Longlines—Gillnets, trawl nets, and interacted with (e.g., Beverton, 1985; of bridge crew watching for obstacles at longlines deployed by the SEFSC are Barlow et al., 1994; Read et al., 2006; all times (including marine mammals), similar to gear used in various Byrd et al., 2014; Lewison et al., 2014). the presence of marine mammal commercial fisheries which have a Although interactions are less common observers on some surveys, and the history of taking marine mammals. Read for use of trawl nets and longlines, they small number of research cruises, we et al. (2006) estimated marine mammal do occur with sufficient frequency to believe that the possibility of ship strike bycatch in U.S. fisheries from 1990–99 necessitate the establishment of is discountable. Further, the and derived an estimate of global required mitigation measures for implementation of the North Atlantic marine mammal bycatch by expanding multiple U.S. fisheries using both types ship strike rule protocols will greatly U.S. bycatch estimates using data on of gear (NMFS, 2014). It is likely that no reduce the potential for interactions fleet composition from the United species of marine mammal can be with North Atlantic right whales. As Nations Food and Agriculture definitively excluded from the potential such, no incidental take resulting from Organization (FAO). Most U.S. bycatch for interaction with fishing gear (e.g., ship strike is anticipated nor is for both cetaceans (84 percent) and Northridge, 1984); however, the extent proposed to be authorized; therefore, pinnipeds (98 percent) occurred in of interactions is likely dependent on this potential effect of research will not gillnets. However, global marine the biology, ecology, and behavior of the be discussed further. mammal bycatch in trawl nets and species involved and the type, location, longlines is likely substantial given that and nature of the fishery. Gear Interaction total global bycatch is thought to As described above, since 2002, The types of research gear used by the number in the hundreds of thousands of NMFS Science Centers have been SEFSC were described previously under individuals (Read et al., 2006). In documenting and recording all fishery ‘‘Detailed Description of Activity.’’ addition, global bycatch via longline has research related incidental takes of Here, we broadly categorize these gears likely increased, as longlines have marine mammals in PSIT database. into those which we believe may result become the most common method of There is also a documented take on in marine mammal interaction and capturing swordfish and tuna since the record from 2001. We present all takes those which we consider to have an United Nations banned the use of high documented by the SEFSC in Table 5. TABLE 5—SEFSC RESEARCH GEAR INTERACTIONS WITH MARINE MAMMALS SINCE 2001

Survey name Species taken # Released Gear type Date taken # Killed 1 Total taken (lead organization) (stock) alive 2

ATLANTIC RESEARCH AREA

SEFSC In-Water Sea Turtle Research Bottlenose dolphin (South Carolina/ Bottom trawl ...... 20 July 2016 ...... 1 0 1 (SCDNR 3). Georgia coastal). SEAMAP–SA Coastal Trawl Survey_ Bottlenose dolphin (Northern Florida Bottom trawl ...... 11 April 2014 ...... 1 0 1 Spring (SCDNR). coastal). SEAMAP–SA Coastal Trawl Survey_ Bottlenose dolphin (South Carolina/ Bottom trawl ...... 2 Aug 2012 ...... 1 0 1 Summer (SCDNR). Georgia coastal). In-Water Sea Turtle Trawl Survey Bottlenose dolphin (South Carolina/ Bottom trawl ...... 11 July 2012 ...... 0 1 1 (SCDNR). Georgia coastal). SEAMAP–SA Coastal Trawl Survey_ Bottlenose dolphin (southern migra- Bottom trawl ...... 5 October 2006 .... 1 0 1 Fall (SCDNR). tory). SEAMAP–SA Coastal Trawl Survey_ Bottlenose dolphin (South Carolina/ Bottom trawl ...... 28 July 2006 ...... 1 0 1 Summer (SCDNR). Georgia coastal). RecFIN Red Drum Trammel Net Sur- Bottlenose dolphin (Charleston Estu- Trammel net ...... 22 August 2002 .... 2 0 2 vey (SCDNR). arine System). In-Water Sea Turtle Trawl Survey Bottlenose dolphin (unk) ...... Bottom Trawl ...... 2001 3 ...... 0 1 1 (SCDNR).

ARA TOTAL ...... 7 2 9

GULF OF MEXICO RESEARCH AREA

Gulf of Mexico Shark Pupping and Bottlenose dolphin (Sarasota Bay) .... Gillnet ...... 03 July 2018 ...... 0 1 1 Nursery GULFSPAN (SEFSC). Gulf of Mexico Shark Pupping and Bottlenose dolphin (northern Gulf of Gillnet ...... 15 July 2016 ...... 1 0 1 Nursery GULFSPAN (USA/DISL 2). Mexico). Skimmer Trawl TED Testing (SEFSC) Bottlenose dolphin (MS Sound, Lake Skimmer trawl ...... 1 October 2014 .... 1 0 1 Borgne, Bay Boudreau). Skimmer Trawl TED Testing (SEFSC) Bottlenose dolphin (MS Sound, Lake Skimmer trawl ...... 23 October 2013 .. 0 1 1 Borgne, Bay Boudreau).

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TABLE 5—SEFSC RESEARCH GEAR INTERACTIONS WITH MARINE MAMMALS SINCE 2001—Continued

Survey name Species taken # Released Gear type Date taken # Killed 1 Total taken (lead organization) (stock) alive 2

SEAMAP–GOM Bottom Longline Sur- Bottlenose dolphin (Mobile Bay, Bottom longline .... 6 August 2013 ...... 0 1 (SI) 1 vey (ADCNR 3). Bonsecour Bay). Gulf of Mexico Shark Pupping and Bottlenose dolphin (MS Sound, Lake Gillnet ...... 18 April 2011 ...... 1 0 1 Nursery GULFSPAN (USA/DISL). Borgne, Bay Boudreau).

GOMRA TOTAL ...... 3 3 6

TOTAL ALL AREAS 3 ...... 10 5 15 1 If there was question over an animal’s fate after it was released (e.g., it was struggling to breath/swim), it was considered ‘‘killed’’. Serious injury determinations were not previously made for animals released alive but are now part of standard protocols for released animals and will be reported in stock assessment reports. 2 Animals released alive but were considered seriously injured as marked as SI. 3 This take occurred prior to development of the PSIT database but we include it here because it is documented. 4There have been no SEFSC fishery research-related takes of marine mammals in the CRA.

Gillnets—According to the PSIT injury, 14 animals were released alive, animal being caught in a skimmer trawl database, there are five documented and the condition of 10 animals was is less than a bottom trawl because the takes of marine mammals (2 ARA, 3 recorded as unknown. gear can be observed directly; the GOMRA) incidental to SEFSC gillnet Commercial gillnet fisheries are also SEFSC research permit 20339 fishery research since 2002. On August implicated in taking marine mammals. authorizing research on sea turtles 22, 2002, two bottlenose dolphins In the ARA, the mid-Atlantic gillnet contains monitoring and mitigation belonging to the Charleston Estuarine fishery has the highest documented measures related to marine mammals System stock became entangled in a level of mortality of coastal morphotype during skimmer trawling. trammel net (a type of gillnet) during common bottlenose dolphins. The sink Globally, at least seventeen cetacean the RecFIN Red Drum Trammel Net gillnet gear in North Carolina is the species are known to feed in association survey. One animal died before largest component in terms of fishing with trawlers and individuals of at least biologists could untangle it. The second effort and observed takes (Waring et al. 25 species are documented to have been animal was disentangled and released 2015). The SEFSC does not use sink killed by trawl nets, including several but it was listless; and, when freed, it gillnets in the ARA. The North Carolina large whales, porpoises, and a variety of sank and no subsequent resurface or Division of Marine Fisheries (NCDMF) delphinids (Young and Iudicello, 2007; breath was observed. Both animals were has operated systematic coverage of the Karpouzli and Leaper, 2004; Hall et al., documented as a mortality. On April 18, fall (September-December) flounder 2000; Fertl and Leatherwood, 1997; 2013, a single bottlenose dolphin calf gillnet fishery (greater 5 in. mesh) in Northridge, 1991; Song et al., 2010). became entangled during the Gulf of Pamlico Sound. In May 2010, NCDMF Mexico Shark Pupping and Nursery expanded the observer coverage to Fertl and Leatherwood (1997) provide a (GULFSPAN) survey. On July 15, 2016, include gillnet effort using nets greater comprehensive overview of marine the lead line of a gillnet used for the than 4 in. mesh in most internal state mammal-trawl interactions, including same survey became wrapped around waters and throughout the year, with a foraging behavior and considerations the fluke of an adult bottlenose dolphin. goal of 7–10 percent coverage. No regarding entanglement risks. Capture or Both animals were considered part of bycatch of bottlenose dolphins has been entanglement may occur whenever the Northern Gulf of Mexico coastal recorded by state observers, although marine mammals are swimming near stock and documented as taken by stranding data continue to indicate the gear, intentionally (e.g., foraging) or mortality. Most recently, on July 3, interactions with this fishery occur. One unintentionally (e.g., migrating), and 3018, a dolphin from the Sarasota Bay gillnet take has also occurred in any animal captured in a net is at stock was entangled in a GULFSPAN commercial fishing off a Florida’s east significant risk of drowning unless survey gillnet. Researchers were coast in March 2015 (eastern coastal quickly freed. Animals can also be attending the net when the dolphin stock); the animal was released alive but captured or entangled in netting or tow became entangled and were able to considered seriously injured. In the lines (also called lazy lines) other than respond immediately. All gear was GOMRA, no marine mammal mortalities the main body of the net; animals may removed from the animal, no injuries associated with commercial gillnet become entangled around the head, were observed, and the dolphin was fisheries have been reported or observed body, flukes, pectoral fins, or dorsal fin. observed breathing multiple times after despite observer coverage on Interaction that does not result in the release. commercial fishing vessels in Alabama, immediate death of the animal by TPWD also has a history of taking Mississippi, and Louisiana since 2012 drowning can cause injury (i.e., Level A bottlenose dolphins during gillnet (Waring et al. 2016). harassment) or serious injury. fisheries research. In 35 years of TPWD Trawl nets—As described previously, Constricting lines wrapped around the gill net sampling (1983–2017), and with trawl nets are towed nets (i.e., active animal can immobilize the animal or over 26,067 gillnet sets, there have been fishing) consisting of a cone-shaped net injure by cutting into or through 32 to 35 dolphin entangled in the net with a codend or bag for collecting the blubber, muscles and bone (i.e., (range is due to possible double fish and can be designed to fish at the penetrating injuries) or constricting counting incidents or two animals being bottom, surface, or any other depth in blood flow to or severing appendages. entangled at the same time but logged as the water column. Trawls are Immobilization of the animal can cause one incident during early years of categorized as bottom, skimmer or mid- internal injuries from prolonged stress reporting). According to the incident water trawls based on where they are and/or severe struggling and/or impede reports submitted to NMFS, 7 towed in the water column. Trawl nets the animal’s ability to feed (resulting in encounters (comprising eight animals) have the potential to capture or entangle starvation or reduced fitness) (Andersen resulted in mortality, 2 were serious marine mammals. The likelihood of an et al., 2008).

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As described in the Description of 2007, the HSU conducted preliminary Six of the animals were dead upon net Specific Activity section, all trawls have diver assisted trials with polydac and retrieval and two animals were released lazy lines. For otter trawls, conventional polyester hard lay ropes as a alive and determined not be serious lazy lines are attached at their forward replacement for traditional injury. In 2001, a dolphin was caught in end to the top/back edge of the inside polypropylene. Polydac rope is a blend a bottom trawl during SCDNR’s sea trawl door closest to the vessel and at of polyester and polypropylene. turtle research survey. Information their aft end to either a ‘‘choker strap’’ Compared to polypropylene, polydac regarding this take are sparse (date and that consists of a line looped around the rope has similar properties including location are unknown) but the animal forward portion of the codend or a ring negligible water absorption and was released alive. On July 28, 2006, in the ‘‘elephant ear,’’ which is a ultraviolet (UV) light resistance. and again later that year on October 5, triangle of reinforced webbing sewn to However, polydac may be constructed bottlenose dolphins belonging to South the codend. Both ‘‘choker straps’’ and with a harder lay than traditional Carolina/Georgia coastal and southern ‘‘elephant ears’’ act as lifting straps to polypropylene rope, which prevents it migratory coastal stock, respectively, bring the codend onboard the vessel. from knotting easily. Divers found the was found dead in a bottom trawl net The length of the lazy line is dependent polydac and polyester lines to be used during the fall Southeast Area on trawl size with conventional lazy significantly stiffer and less pliable Monitoring and Assessment Program lines having sufficient length to allow underwater than the conventional (SEAMAP) SA Coastal Trawl survey. the codend of the trawl to be hauled to polypropylene lines. When towed, Both animals were taken back to partner the side of the vessel after trawls have divers noted that the polypropylene labs for necropsy. On July 11, 2012, a been retrieved. The lazy line is routed rope was positively buoyant and arced bottlenose dolphin belonging to the through a block and wound around a upward, while polydac and polyester South Carolina/Georgia coastal stock capstan to lift the codend to the side of ropes were negatively buoyant and was also caught in a bottom trawl net the boat where the catch can be easily arced downward. during the In-Water Sea Turtle Research emptied on deck. During active The 2007 diver evaluations were survey. The net was immediately commercial trawling, the lazy line is followed by sea trial evaluations of five retrieved and the animal was released long enough to form a 10–12 ft loop different types of rope made from alive, breathing without difficulty and behind the codend. When traditional polypropylene, polyethylene, or nylon swiftly swimming away. On August 2, polypropylene rope is used, this loop as lazy lines in a standard twin-rigged 2012 a bottlenose dolphin also floats even with or slightly above and shrimp trawl configuration (Hataway belonging to the South Carolina/Georgia behind the codend. It is in this loop 2008). The study utilized a Dual- coastal stock was captured in the trawl section where many lazy line dolphin Frequency Identification Sonar net during the summer SEAMAP–SA interactions have been observed. (DIDSON) to image bottlenose dolphins Coastal Trawl survey. The animal was Lazy lines are most commonly made interacting with the lazy lines. Dolphin dead upon net retrieval. Most recently, from polypropylene. Because behaviors observed during the study on July 20, 2016, a bottlenose dolphin polypropylene is manufactured in a included; rubbing, sliding down, and belonging to the South Carolina/Georgia manner that produces soft lay rope, it is pulling the lazy line. No statistical coastal stock was taken in a bottom limber and can be dropped in a pile. analyses were conducted, but trawl during the In-Water Sea Turtle This property lends to the potential risk researchers noted that no differences in Research survey. Upon net retrieval, a of half hitching around bottlenose the frequency or types of interactions suspected juvenile bottlenose dolphin, dolphin flukes when they interact with observed were apparent between line approximately 6 feet in length, was the line. In addition, polypropylene types. observed in the starboard codend of the rope does not absorb water or lose In the estuary and coastal waters, trawl net. Although the animal was strength when wet and becomes prickly dolphins are attracted to and are released alive, it was listless and not to the touch as it ages, which may consistently present during fishery actively swimming when returned to the contribute to bottlenose dolphin rubbing research trawls. Dolphins are known to water. Therefore, the event was behavior. attend operating nets in order to either documented as a take by mortality. When interacting with lazy lines, benefit from disturbance of the bottom In the GOMRA, a bottlenose dolphin bottlenose dolphins are often observed or to prey on discards or fish within the belonging to the Mississippi Sound, rubbing, corkscrewing, or biting the aft net. Researchers have also identified Lake Borge, Bay Boudreau stock was portion of the line ahead of the point of that holes in trawl nets from dolphins captured in a skimmer trawl on October attachment on the trawl (Greenman are typically located in net pockets 23, 2013, during the SEFSC Skimmer 2012). Although reasons for these where fish congregate. Pelagic trawls Trawl TED Testing survey. The animal behaviors are poorly understood, this have the potential to capture cetaceans was observed breathing at the surface in type of interaction poses an because the nets may be towed at faster the trawl upon retrieval of tailbag. To entanglement threat. When speeds. These trawls are more likely to free the animal, the researchers corkscrewing on the lazy line, animals target species that are important prey for redeployed the bag and slowed the run the risk of the line wrapping around marine mammals (e.g., squid, mackerel), vessel, allowing the animal to swim their fluke in a half-hitch preventing and the likelihood of working in deeper away unharmed. On October 1, 2014, a escapement. Soldevilla et al. (2016) waters means that a more diverse bottlenose dolphin belonging to the provided bottlenose dolphin bycatch assemblage of species could potentially same stock was taken during the same estimates for the Gulf of Mexico (GOM) be present (Hall et al., 2000). survey. The animal was dead upon net shrimp otter trawl fishery for 2012– According to the PSIT database, there retrieval. 2014. The study found interactions with are nine documented takes of marine In November 2010, NMFS elevated lazy lines represented the most common mammals (7 ARA, 2 GOMRA) incidental the Southeast Atlantic shrimp trawl mode of entanglement observed. to SEFSC trawl-based fishery research fishery from a Category II to Category III The SEFSC Harvesting Systems Unit since 2002; all are bottlenose dolphins. fishing. From May through December (HSU) has conducted limited research In the ARA, all animals were taken in 2010, Greenman et al. (2013) examining the potential use of lazy lines a bottom trawl while skimmer trawls investigated interactions between the constructed of alternative materials. In were implicated in takes in the GOMRA. South Carolina shrimping fleet and

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bottlenose dolphins. Methods included can still result in entanglement in buoy taken incidental to longline fisheries fishery-independent (SCNDR fisheries lines or hooking as the line is either research. On August 6, 2013, while research surveys) and fishery-dependent deployed or retrieved. The rate of retrieving bottom longline gear during onboard observations, a shrimper interaction between longline fisheries the SEAMAP–GOM Bottom Longline survey, and stranding record research. and marine mammals depends on the survey, a dolphin was caught by a circle The authors found that of the 385 tows degree of overlap between longline hook during a longline research survey. observed, dolphins were present 45 effort and species distribution, hook After less than 60 seconds, the animal percent of the time (173 tows). Of these style and size, type of bait and target broke free from the gear and swam away tows, dolphins were present 12 percent catch, and fishing practices (such as vigorously, but the hook and of the time at set-out and 44 percent of setting/hauling during the day or at approximately 2 m of trailing line the time during haul back. According to night). remained attached to the animal. As the shrimper survey, most fishermen Rod and reel gear carry less potential such, the incident was documented as a report dolphins rubbing bodies on the for marine mammal interaction, but the serious injury. While a lack of repeated net or biting or tugging on nets or lines. use of baited hooks in the presence of historical interaction does not in and of However, 39 of the 44 fishermen inquisitive marine mammals carries itself indicate that future interactions surveyed reported a dolphin has never some risk. However, the small amount are unlikely, we believe that the become entangled in the net while 38 of of hook and line operations in relation historical record, considered in context the 44 fishermen reported a dolphin has to longline operations and the lack of with the frequency and timing of these never become entangled in the lazy line. extended, unattended soak times mean activities, as well as mitigation Hook and Line—Marine mammals that use of rod and reel is much less measures employed indicate that future may be hooked or entangled in longline likely to result in marine mammal marine mammal interactions with these gear, with interactions potentially interactions for pelagic species. gears would be uncommon but not resulting in death due to drowning, However, bottlenose dolphins are totally unexpected. strangulation, severing of carotid known to interact with commercial and Other research gear—All other gear arteries or the esophagus, infection, an recreational rod and reel fishermen. The used in SEFSC fisheries research (e.g., a inability to evade predators, or SEFSC rod and reel fishing would variety of plankton nets, eel and starvation due to an inability to catch implement various mitigation measures chevron traps, CTDs, ROVs) do not have prey (Hofmeyr et al., 2002), although it including consistent monitoring and the expected potential for marine is more likely that animals will survive pulling lines from water should marine mammal interactions and are not known being hooked if they are able to reach mammals, especially bottlenose to have been involved in any marine the surface to breathe. Injuries, which dolphins, be at risk of interaction. mammal interaction. Specifically, we may include serious injury, include Therefore, we find a reduced potential consider very small nets (e.g., bongo and lacerations and puncture wounds. for interaction from SEFSC rod and reel nueston nets), CTDs, ROVs, and Animals may attempt to depredate surveys than compared to commercial vertically deployed or towed imaging either bait or catch, with subsequent and recreational fishing. systems to be no-impact gear types. hooking, or may become accidentally Many species of cetaceans and Unlike trawl nets, gillents, and hook entangled. As described for trawls, pinnipeds are documented to have been and line gear, which are used in both entanglement can lead to constricting killed by longlines, including several scientific research and commercial lines wrapped around the animals and/ large whales, porpoises, a variety of fishing applications, the gear and or immobilization, and even if delphinids, seals, and sea lions (Perez, equipment discussed here are not entangling materials are removed the 2006; Young and Iudicello, 2007; considered similar or analogous to any wounds caused may continue to weaken Northridge, 1984, 1991; Wickens, 1995). commercial fishing gear and are not the animal or allow further infection Generally, direct interaction between designed to capture any commercially (Hofmeyr et al., 2002). longlines and marine mammals (both salable species, or to collect any sort of Large whales may become entangled cetaceans and pinnipeds) has been sample in large quantities. They do not in a longline and then break free with recorded wherever longline fishing and have the potential to take marine a portion of gear trailing, resulting in animals co-occur. A lack of recorded mammals primarily because of their alteration of swimming energetics due interactions where animals are known design, size, or how they are deployed. to drag and ultimate loss of fitness and to be present may indicate simply that For example, CTDs are typically potential mortality (Andersen et al., longlining is absent or an insignificant deployed in a vertical cast on a cable 2008). Weight of the gear can cause component of fisheries in that region or and have no loose lines or other entangling lines to further constrict and that interactions were not observed, entanglement hazards. A bongo net is further injure the animal. Hooking recorded, or reported. typically deployed on a cable, whereas injuries and ingested gear are most In evaluating risk relative to a specific neuston nets (these may be plankton common in small cetaceans and fishery (or research survey), one must nets or small trawls) are often deployed pinnipeds but have been observed in consider the length of the line and in the upper one meter of the water large cetaceans (e.g., sperm whales). The number of hooks deployed as well as column; either net type has very small severity of the injury depends on the frequency, timing, and location of size (e.g., two bongo nets of 0.5 m2 each species, whether ingested gear includes deployment. These considerations or a neuston net of approximately 2 m2) hooks, whether the gear works its way inform determinations of whether and no trailing lines. Due to lack of into the gastrointestinal (GI) tract, interaction with marine mammals is potential to result in harassment to whether the gear penetrates the GI likely. As with other gear and fishing marine mammals, these other gear types lining, and the location of the hooking practice comparisons to those involved are not considered further in this (e.g., embedded in the animal’s stomach in commercial fisheries, the longlines document. or other internal body parts) (Andersen used by the SEFSC are shorter and are Potential Effects of Underwater et al., 2008). not set as long. Sound—Anthropogenic sounds cover a Bottom longlines pose less of a threat According to the PSIT database, one broad range of frequencies and sound to marine mammals due to their bottlenose dolphin belonging to the levels and can have a range of highly deployment on the ocean bottom but Mobile Bay, Bonsecour Bay stock was variable impacts on marine life, from

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none or minor to potentially severe output levels of these sources and the SWFSC and NWFSC proposed rules for responses, depending on received levels that would likely be required for incidental take of marine mammals levels, duration of exposure, behavioral animals to detect them would be on the incidental to fisheries research and the context, and various other factors. The order of a few meters. The probability SEFSC’s application, the potential for potential effects of underwater sound for injury or disturbance from these PTS is extremely low given the high from active acoustic sources can sources is discountable; therefore, no frequency and directionality of the potentially result in one or more of the take is proposed to be authorized by active acoustic sources used during following: Temporary or permanent Category 1 sources. fisheries research. Because the hearing impairment, non-auditory frequency ranges of all sources are Auditory Thresholds Shifts physical or physiological effects, outside the hearing range of baleen behavioral disturbance, stress, and NMFS defines threshold shift (TS) as whales (with the exception of the 18 masking (Richardson et al., 1995; ‘‘a change, usually an increase, in the kHz mode of the Simrad EK60), we do Gordon et al., 2004; Nowacek et al., threshold of audibility at a specified not anticipate PTS to occur for 2007; Southall et al., 2007; Go¨tz et al., frequency or portion of an individual’s mysticetes. Any potential PTS for mid- 2009). The degree of effect is hearing range above a previously frequency and high-frequency cetaceans intrinsically related to the signal established reference level’’ (NMFS, is also very low given the cone of characteristics, received level, distance 2016). Threshold shift can be permanent highest received levels is centered from the source, duration of the sound (PTS) or temporary (TTS). As described under the ship because, while exposure, and context in which the in NMFS (2016), there are numerous echosounders may transmit at high signal is received. factors to consider when examining the sound pressure levels, the very short When considering the potential for a consequence of TS, including, but not duration of their pulses and their high marine mammal to be harassed by a limited to, the signal temporal pattern spatial selectivity make them unlikely to sound-generating source, we consider (e.g., impulsive or non-impulsive), cause damage to marine mammal multiple signal characteristics, likelihood an individual would be auditory systems (Lurton and DeRuiter, including, but not limited to, sound exposed for a long enough duration or 2011). Natural avoidance responses by type (e.g., impulsive vs. non-impulsive; to a high enough level to induce a TS, animals to the proximity of the vessel at continuous vs. intermittent), frequency the magnitude of the TS, time to these extremely close ranges would (expressed as hertz (Hz) or kilohertz recovery (seconds to minutes or hours to likely further reduce their probability of (kHz), and source levels (expressed as days), the frequency range of the being exposed to these levels. decibels (dB)). A sound pressure level exposure (i.e., spectral content), the (SPL) in dB is described as the ratio hearing and vocalization frequency Temporary Threshold Shift between a measured pressure and a range of the exposed species relative to NMFS defines TTS as ‘‘a temporary, reference pressure (for underwater the signal’s frequency spectrum (i.e., reversible increase in the threshold of sound, this is 1 microPascal [mPa]). how animal uses sound within the audibility at a specified frequency or Typically SPLs are expressed as root frequency band of the signal; e.g., portion of an individual’s hearing range mean square (rms) values which is the Kastelein et al. 2014b), and their overlap above a previously established reference quadratic mean sound pressure over the (e.g., spatial, temporal, and spectral). level’’ (NMFS, 2016). A TTS of 6 dB is considered the minimum threshold shift duration of an impulse or sound Permanent Threshold Shift exposure levels (SEL; represented as dB clearly larger than any day-to-day or re 1 mPa2-s) which represents the total NMFS defines PTS as ‘‘a permanent, session-to-session variation in a energy contained within a pulse, and irreversible increase in the threshold of subject’s normal hearing ability considers both intensity and duration of audibility at a specified frequency or (Schlundt et al., 2000; Finneran et al., exposure. portion of an individual’s hearing range 2000; Finneran et al. 2002, as reviewed The SEFSC would not use acoustic above a previously established reference in Southall et al., 2007 for a review)). sources with spectral characteristics level’’ (NMFS, 2016). It is the permanent TTS can last from minutes or hours to resembling non-impulsive, continuous elevation in hearing threshold resulting days (i.e., there is recovery), occur in noise (e.g., drilling). For impulsive from irreparable damage to structures of specific frequency ranges (i.e., an sounds, peak sound pressure levels (PK) the inner ear (e.g., sensory hair cells, animal might only have a temporary also provide an indication of potential cochlea) or central auditory system loss of hearing sensitivity between the harassment. We also consider other (ANSI, 1995; Ketten 2000). Available frequencies of 1 and 10 kHz)), and can source characteristics when assessing data from humans and other terrestrial be of varying amounts (for example, an potential effects such as directionality mammals indicate that a measured 40 animal’s hearing sensitivity might be and beam width of fishery sonar dB threshold shift approximates PTS temporarily reduced by only 6 dB or equipment such as the ones involved onset (see Ward et al. 1958; Ward et al. reduced by 30 dB). Currently, TTS here. 1959; Kryter et al. 1966; Miller 1974; measurements exist for only four As described above, category 1 Henderson et al. 2008). Unlike TTS, species of cetaceans (bottlenose sources (those operating above 180kHz), NMFS considers PTS auditory injury dolphins, belugas, harbor porpoises, and are determined to have essentially no and therefore constitutes Level A Yangtze finless porpoise) and three probability of being detected by or harassment, as defined in the MMPA. species of pinnipeds (Northern elephant resulting in any potential adverse With the exception of a single study seal, harbor seal, and California sea impacts on marine species. This unintentionally inducing PTS in a lion). These TTS measurements are from conclusion is based on the fact that harbor seal (Kastak et al., 2008), there a limited number of individuals within operating frequencies are above the are no empirical data measuring PTS in these species. known hearing capabilities of any marine mammals largely due to the fact Depending on the degree (elevation of marine species (as described above). that, for various ethical reasons, threshold in dB), duration (i.e., recovery Although sounds that are above the experiments involving anthropogenic time), and frequency range of TTS, and functional hearing range of marine noise exposure at levels inducing PTS the context in which it is experienced, animals may be audible if sufficiently are not typically pursued or authorized TTS can have effects on marine loud (e.g., see M

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serious (similar to those discussed in discussion provided by Southall et al. that any behavioral responses would be auditory masking, below). For example, (2007), Lurton and DeRuiter (2011) unlikely to be significant. Similarly, a marine mammal may be able to readily modeled the potential impacts of Boebel et al. (2006) considered the compensate for a brief, relatively small conventional echosounders on marine Hydrosweep system in relation to the amount of TTS in a non-critical mammals, estimating TTS onset at risk for direct or indirect injury, frequency range that takes place during typical distances of 10–100 m for the concluding that (1) risk of TTS (please a time when the animal is traveling kinds of sources considered here. see Boebel et al. (2006) for assumptions through the open ocean, where ambient Kremser et al. (2005) modeled the regarding TTS onset) would be less than noise is lower and there are not as many potential for TTS in blue, sperm, and two percent of the risk of ship strike and competing sounds present. beaked whales (please see Kremser et al. (2) risk of behaviorally-induced damage Alternatively, a larger amount and (2005) for discussion of assumptions would be essentially nil due to longer duration of TTS sustained during regarding TTS onset in these species) differences in source characteristics time when communication is critical for from a multibeam echosounder, finding between scientific sonars and sources successful mother/calf interactions similarly that TTS would likely only typically associated with stranding could have more serious impacts. We occur at very close ranges to the hull of events (e.g., mid-frequency active sonar, note that reduced hearing sensitivity as the vessel. The authors estimated ship but see discussion of the 2008 a simple function of aging has been movement at 12 kn (faster than SEFSC Madagascar stranding event below). It observed in marine mammals, as well as vessels would typically move), which should be noted that the risk of direct humans and other taxa (Southall et al., would result in an underestimate of the injury may be greater when a vessel 2007), so we can infer that strategies potential for TTS to occur. But the operates sources while on station (i.e., exist for coping with this condition to modeled system (Hydrosweep) operates stationary), as there is a greater chance some degree, though likely not without at lower frequencies and with a wider for an animal to receive the signal when cost. beam pattern than do typical SEFSC the vessel is not moving. As described previously (see systems, which would result in a likely Boebel et al. (2005) report the results Description of Active Acoustic Sound more significant overestimate of TTS of a workshop in which a structured, Sources), the SEFSC proposes to use potential. The results of both studies qualitative risk analysis of a range of various active acoustic sources, emphasize that these effects would very acoustic technology was undertaken, including echosounders (e.g., likely only occur in the cone ensonified specific to use of such technology in the multibeam systems), scientific sonar below the ship and that animal Antarctic. The authors assessed a single- systems, positional sonars (e.g., net responses to the vessel (sound or beam echosounder commonly used for sounders for determining trawl physical presence) at these extremely position), and environmental sensors collecting bathymetric data (12 kHz, 232 close ranges would very likely influence dB, 10° beam width), an array of single- (e.g., current profilers). These acoustic their probability of being exposed to sources are not as powerful as many beam echosounders used for mapping these levels. At the same distances, but krill (38, 70, 120, and 200 kHz; 230 dB; typically investigated acoustic sources to the side of the vessel, animals would ° (e.g., seismic airguns, low- and mid- 7 beam width), and a multibeam not be exposed to these levels, greatly echosounder (30 kHz, 236 dB, 150° x 1° frequency active sonar used for military decreasing the potential for an animal to purposes) which produce signals that swath width). For each source, the be exposed to the most intense signals. authors produced a matrix displaying are either much lower frequency and/or For example, Kremser et al. (2005) note higher total energy (considering output the severity of potential consequences that SPLs outside the vertical lobe, or sound levels and signal duration) than (on a six-point scale) against the beam, decrease rapidly with distance, the high-frequency mapping and fish- likelihood of occurrence for a given such that SPLs within the horizontal finding systems used by the SEFSC. degree of severity. For the former two lobes are about 20 dB less than the value There has been relatively little attention systems, the authors determined on the found in the center of the beam. For given to the potential impacts of high- basis of the volume of water potentially certain species (i.e., odontocete frequency sonar systems on marine life, affected by the system and comparisons cetaceans and especially harbor largely because their combination of between its output and available TTS porpoises), these ranges may be high output frequency and relatively data that the chance of TTS only exists somewhat greater based on more recent low output power means that such in a small volume immediately under systems are less likely to impact many data (Lucke et al., 2009; Finneran and the transducers, and that consequences marine species. However, some marine Schlundt, 2010) but are likely still on of level four and above were mammals do hear and produce sounds the order of hundreds of meters. In inconceivable, whereas level one within the frequency range used by addition, potential behavioral responses consequences (‘‘Individuals show no these sources and ambient noise is further reduce the already low response, or only a temporary (minutes) much lower at high frequencies, likelihood that an animal may approach behavior change’’) would be expected in increasing the probability of signal close enough for any type of hearing almost all instances. Some minor detection relative to other sounds in the loss to occur. displacement of animals in the environment. Various other studies have evaluated immediate vicinity of the ship may As noted above, relatively high levels the environmental risk posed by use of occur. For the multibeam echosounder, of sound are likely required to cause specific scientific sonar systems. Boebel et al. (2005) note that the high TTS in marine mammals. However, Burkhardt et al. (2007) considered the output and broad width of the swath there may be increased sensitivity to Simrad EK60, which is used by the abeam of the vessel makes displacement TTS for certain species generally (harbor SEFSC, and concluded that direct injury of animals more likely. However, the porpoise; Lucke et al., 2009) or (i.e., sound energy causes direct tissue fore and aft beamwidth is small and the specifically at higher sound exposure damage) and indirect injury (i.e., self- pulse length very short, so the risk of frequencies, which correspond to a damaging behavior as response to ensonification above TTS levels is still species’ best hearing range (20 kHz vs. acoustic exposure) would be unlikely considered quite small and the 3 kHz for bottlenose dolphins; Finneran given source and operational use (i.e., likelihood of auditory or other injuries and Schlundt, 2010). Based on vessel movement) characteristics, and low. In general, the authors reached the

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same conclusions described for the high levels, as would be necessary to and any reactions depend on numerous single-beam systems but note that more cause TTS. Additionally, given that intrinsic and extrinsic factors (e.g., severe impacts—including fatalities behavioral responses typically include species, state of maturity, experience, resulting from herding of sensitive the temporary avoidance that might be current activity, reproductive state, species in narrow sea ways—are at least expected (see below), the potential for auditory sensitivity, time of day), as possible (i.e., may occur in exceptional auditory effects considered well as the interplay between factors circumstances). However, the physiological damage (injury) is (e.g., Richardson et al., 1995; Wartzok et probability of herding remains low not considered extremely low in relation to al., 2003; Southall et al., 2007; Weilgart, just because of the rarity of the realistic operations of these devices. 2007; Archer et al., 2010). Behavioral necessary confluence of species, Given the fact that fisheries research reactions can vary not only among bathymetry, and likely other factors, but survey vessels are moving, the individuals but also within an because the restricted beam shape likelihood that animals may avoid the individual, depending on previous makes it unlikely that an animal would vessel to some extent based on either its experience with a sound source, be exposed more than briefly during the physical presence or due to aversive context, and numerous other factors passage of the vessel (Boebel et al., sound (vessel or active acoustic (Ellison et al., 2012), and can vary 2005). More recently, Lurton (2016) sources), and the intermittent nature of depending on characteristics associated conducted a modeling exercise and many of these sources, the potential for with the sound source (e.g., whether it concluded similarly that likely potential TTS is probably low for high-frequency is moving or stationary, number of for acoustic injury from these types of cetaceans and very low to zero for other sources, distance from the source). systems is negligible, but that behavioral species. Habituation can occur when an response cannot be ruled out. animal’s response to a stimulus wanes Characteristics of the sound sources Behavioral Effects on Marine Mammals with repeated exposure, usually in the used by SEFSC reduce the likelihood of Category 2 active acoustic sources are absence of unpleasant associated events effects to marine mammals, as well as likely to be audible to some marine (Wartzok et al., 2003). Animals are most the intensity of effect assuming that an mammal species. Among the marine likely to habituate to sounds that are animal perceives the signal. Intermittent mammals, most of these sources are predictable and unvarying. It is exposures—as would occur due to the unlikely to be audible to whales and important to note that habituation is brief, transient signals produced by most pinnipeds, whereas they may be appropriately considered as a these sources—require a higher detected by odontocete cetaceans (and ‘‘progressive reduction in response to cumulative SEL to induce TTS than particularly high frequency specialists stimuli that are perceived as neither would continuous exposures of the such as harbor porpoise). Richardson et aversive nor beneficial,’’ rather than as, same duration (i.e., intermittent al. (1995) described zones of increasing more generally, moderation in response exposure results in lower levels of TTS) intensity of effect that might be to human disturbance (Bejder et al., (Mooney et al., 2009a; Finneran et al., expected to occur, in relation to 2009). The opposite process is 2010). In addition, animals recover from distance from a source and assuming sensitization, when an unpleasant intermittent exposures faster in that the signal is within an animal’s experience leads to subsequent comparison to continuous exposures of hearing range. First is the area within responses, often in the form of the same duration (Finneran et al., which the acoustic signal would be avoidance, at a lower level of exposure. 2010). Although echosounder pulses audible (potentially perceived) to the As noted, behavioral state may affect the are, in general, emitted rapidly, they are animal but not strong enough to elicit type of response. For example, animals not dissimilar to odontocete any overt behavioral or physiological that are resting may show greater echolocation click trains. Research response. The next zone corresponds behavioral change in response to indicates that marine mammals with the area where the signal is audible disturbing sound levels than animals generally have extremely fine auditory to the animal and of sufficient intensity that are highly motivated to remain in temporal resolution and can detect each to elicit behavioral or physiological an area for feeding (Richardson et al., signal separately (e.g., Au et al., 1988; responses. Third is a zone within 1995; NRC, 2003; Wartzok et al., 2003). Dolphin et al., 1995; Supin and Popov, which, for signals of high intensity, the Controlled experiments with captive 1995; Mooney et al., 2009b), especially received level is sufficient to potentially marine mammals have showed for species with echolocation cause discomfort or tissue damage to pronounced behavioral reactions, capabilities. Therefore, it is likely that auditory or other systems. Overlaying including avoidance of loud sound marine mammals would indeed these zones to a certain extent is the sources (Ridgway et al., 1997; Finneran perceive echosounder signals as being area within which masking (i.e., when a et al., 2003). Observed responses of wild intermittent. sound interferes with or masks the marine mammals to loud pulsed sound We conclude that, on the basis of ability of an animal to detect a signal of sources (typically seismic airguns or available information on hearing and interest that is above the absolute acoustic harassment devices) have been potential auditory effects in marine hearing threshold) may occur; the varied but often consist of avoidance mammals, high-frequency cetacean masking zone may be highly variable in behavior or other behavioral changes species would be the most likely to size. suggesting discomfort (Morton and potentially incur temporary hearing loss Behavioral disturbance may include a Symonds, 2002; see also Richardson et from a vessel operating high-frequency variety of effects, including subtle al., 1995; Nowacek et al., 2007). fishery research sonar sources, and the changes in behavior (e.g., minor or brief Available studies show wide variation potential for PTS to occur for any avoidance of an area or changes in in response to underwater sound; species is so unlikely as to be vocalizations), more conspicuous therefore, it is difficult to predict discountable. Even for high-frequency changes in similar behavioral activities, specifically how any given sound in a cetacean species, individuals would and more sustained and/or potentially particular instance might affect marine have to make a very close approach and severe reactions, such as displacement mammals perceiving the signal. If a also remain very close to vessels from or abandonment of high-quality marine mammal does react briefly to an operating these sources in order to habitat. Behavioral responses to sound underwater sound by changing its receive multiple exposures at relatively are highly variable and context-specific behavior or moving a small distance, the

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impacts of the change are unlikely to be respiration rates may either be signals exist, although observations of significant to the individual, let alone unaffected or could increase, depending flight responses to the presence of the stock or population. However, if a on the species and signal characteristics, predators have occurred (Connor and sound source displaces marine again highlighting the importance in Heithaus, 1996). The result of a flight mammals from an important feeding or understanding species differences in the response could range from brief, breeding area for a prolonged period, tolerance of underwater noise when temporary exertion and displacement impacts on individuals and populations determining the potential for impacts from the area where the signal provokes could be significant (e.g., Lusseau and resulting from anthropogenic sound flight to, in extreme cases, marine Bejder, 2007; Weilgart, 2007; NRC, exposure (e.g., Kastelein et al., 2001, mammal strandings (Evans and 2005). However, there are broad 2005b, 2006; Gailey et al., 2007). England, 2001). However, it should be categories of potential response, which Marine mammals vocalize for noted that response to a perceived we describe in greater detail here, that different purposes and across multiple predator does not necessarily invoke include alteration of dive behavior, modes, such as whistling, echolocation flight (Ford and Reeves, 2008), and alteration of foraging behavior, effects to click production, calling, and singing. whether individuals are solitary or in breathing, interference with or alteration Changes in vocalization behavior in groups may influence the response. of vocalization, avoidance, and flight. response to anthropogenic noise can Behavioral disturbance can also Changes in dive behavior can vary occur for any of these modes and may impact marine mammals in more subtle widely and may consist of increased or result from a need to compete with an ways. Increased vigilance may result in decreased dive times and surface increase in background noise or may costs related to diversion of focus and intervals as well as changes in the rates reflect increased vigilance or a startle attention (i.e., when a response consists of ascent and descent during a dive (e.g., response. For example, in the presence of increased vigilance, it may come at Frankel and Clark, 2000; Costa et al., of potentially masking signals, the cost of decreased attention to other 2003; Ng and Leung, 2003; Nowacek et humpback whales and killer whales critical behaviors such as foraging or al.; 2004; Goldbogen et al., 2013a, b). have been observed to increase the resting). These effects have generally not Variations in dive behavior may reflect length of their songs (Miller et al., 2000; been demonstrated for marine interruptions in biologically significant Fristrup et al., 2003; Foote et al., 2004), mammals, but studies involving fish activities (e.g., foraging) or they may be while right whales have been observed and terrestrial animals have shown that of little biological significance. The to shift the frequency content of their increased vigilance may substantially impact of an alteration to dive behavior calls upward while reducing the rate of reduce feeding rates (e.g., Beauchamp resulting from an acoustic exposure calling in areas of increased and Livoreil, 1997; Fritz et al., 2002; depends on what the animal is doing at anthropogenic noise (Parks et al., Purser and Radford, 2011). In addition, the time of the exposure and the type 2007b). In some cases, animals may chronic disturbance can cause and magnitude of the response. cease sound production during population declines through reduction Disruption of feeding behavior can be production of aversive signals (Bowles of fitness (e.g., decline in body difficult to correlate with anthropogenic et al., 1994). sound exposure, so it is usually inferred Avoidance is the displacement of an condition) and subsequent reduction in by observed displacement from known individual from an area or migration reproductive success, survival, or both foraging areas, the appearance of path as a result of the presence of a (e.g., Harrington and Veitch, 1992; Daan secondary indicators (e.g., bubble nets sound or other stressors, and is one of et al., 1996; Bradshaw et al., 1998). or sediment plumes), or changes in dive the most obvious manifestations of However, Ridgway et al. (2006) reported behavior. As for other types of disturbance in marine mammals that increased vigilance in bottlenose behavioral response, the frequency, (Richardson et al., 1995). For example, dolphins exposed to sound over a five- duration, and temporal pattern of signal gray whales are known to change day period did not cause any sleep presentation, as well as differences in direction—deflecting from customary deprivation or stress effects. species sensitivity, are likely migratory paths—in order to avoid noise Many animals perform vital functions, contributing factors to differences in from seismic surveys (Malme et al., such as feeding, resting, traveling, and response in any given circumstance 1984). Avoidance may be short-term, socializing, on a diel cycle (24-hour (e.g., Croll et al., 2001; Nowacek et al.; with animals returning to the area once cycle). Disruption of such functions 2004; Madsen et al., 2006; Yazvenko et the noise has ceased (e.g., Bowles et al., resulting from reactions to stressors al., 2007). A determination of whether 1994; Goold, 1996; Morton and such as sound exposure are more likely foraging disruptions incur fitness Symonds, 2002; Gailey et al., 2007). to be significant if they last more than consequences would require Longer-term displacement is possible, one diel cycle or recur on subsequent information on or estimates of the however, which may lead to changes in days (Southall et al., 2007). energetic requirements of the affected abundance or distribution patterns of Consequently, a behavioral response individuals and the relationship the affected species in the affected lasting less than one day and not between prey availability, foraging effort region if habituation to the presence of recurring on subsequent days is not and success, and the life history stage of the sound does not occur (e.g., considered particularly severe unless it the animal. Blackwell et al., 2004; Bejder et al., could directly affect reproduction or Variations in respiration naturally 2006; Teilmann et al., 2006). survival (Southall et al., 2007). Note that vary with different behaviors and A flight response is a dramatic change there is a difference between multi-day alterations to breathing rate as a in normal movement to a directed and substantive behavioral reactions and function of acoustic exposure can be rapid movement away from the multi-day anthropogenic activities. For expected to co-occur with other perceived location of a sound source. example, just because an activity lasts behavioral reactions, such as a flight The flight response differs from other for multiple days does not necessarily response or an alteration in diving. avoidance responses in the intensity of mean that individual animals are either However, respiration rates in and of the response (e.g., directed movement, exposed to activity-related stressors for themselves may be representative of rate of travel). Relatively little multiple days or, further, exposed in a annoyance or an acute stress response. information on flight responses of manner resulting in sustained multi-day Various studies have shown that marine mammals to anthropogenic substantive behavioral responses.

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Few experiments have been echosounder use. Beaked whales have Increases in the circulation of conducted to explicitly test for potential also not consistently been observed to glucocorticoids are also equated with effects of echosounders on the behavior elicit behaviors across species or source stress (Romano et al., 2004). of wild cetaceans. Quick et al. (2017) type. For example, Cuvier’s beaked The primary distinction between describe an experimental approach to whales have strongly avoided playbacks stress (which is adaptive and does not assess potential changes in short-finned of mid-frequency active sonar at normally place an animal at risk) and pilot whale behavior during exposure to distances of 10 km but reacted much ‘‘distress’’ is the cost of the response. an echosounder (Simrad EK60 operated less severely to naval sonar operating During a stress response, an animal uses at 38 kHz, which is commonly used by 118 km away, despite similar RLs glycogen stores that can be quickly SESC). In 2011, digital acoustic (DeRuiter et al. 2013). replenished once the stress is alleviated. recording tags (DTAG) were attached to Based on the available data, NMFS In such circumstances, the cost of the pilot whales off of North Carolina, with anticipates beaked whales and harbor stress response would not pose serious five of the nine tagged whales exposed porpoise are more likely to respond in fitness consequences. However, when to signals from the echosounder over a a manner that may rise to the level of an animal does not have sufficient period of eight days and four treated as take to SEFSC acoustic sources. energy reserves to satisfy the energetic control animals. DTAGS record both However, the method by which take is costs of a stress response, energy received levels of noise as well as quantified in this proposed rule is resources must be diverted from other orientation of the animal. Results did conservative (e.g., simplified, functions. This state of distress will last not show an overt response to the conservative Level B harassment area to until the animal replenishes its echosounder or a change to foraging the 160dB isopleth, conservative energetic reserves sufficient to restore behavior of tagged whales, but the amount of time surveys may occur) and normal function. whales did increase heading variance adequately accounts for the number of Relationships between these during exposure. The authors suggest individuals which may be taken. We physiological mechanisms, animal that this response was not a directed also note harbor porpoise occur as far behavior, and the costs of stress avoidance response but was more likely south as North Carolina in the ARA responses are well-studied through a vigilance response, with animals during winter months (January through controlled experiments and for both maintaining awareness of the location of March) and do not inhabit the GOMRA laboratory and free-ranging animals the echosounder through increased or CRA. Therefore, the potential for (e.g., Holberton et al., 1996; Hood et al., changes in heading variance (Quick et harassment from scientific sonar used 1998; Jessop et al., 2003; Krausman et al., 2017). Visual observations of by the SEFSC is unlikely outside of the al., 2004; Lankford et al., 2005). Stress behavior did not indicate any dramatic January through March timeframe off of responses due to exposure to anthropogenic sounds or other stressors response, unusual behaviors, or changes North Carolina constituting a very small and their effects on marine mammals in heading, and cessation of biologically subset of space and time when have also been reviewed (Fair and important behavior such as feeding was considering all three research areas and Becker, 2000; Romano et al., 2002b) not observed. These less overt responses research effort. More information on and, more rarely, studied in wild to sound exposure are difficult to detect take estimate methodology is found in populations (e.g., Romano et al., 2002a). by visual observation, but may have the Estimated Take section. Stress responses—An animal’s For example, Rolland et al. (2012) found important consequences if the exposure perception of a threat may be sufficient that noise reduction from reduced ship does interfere with biologically to trigger stress responses consisting of traffic in the Bay of Fundy was important behavior. some combination of behavioral associated with decreased stress in We considered behavioral data from responses, autonomic nervous system North Atlantic right whales. These and these species when assessing the responses, neuroendocrine responses, or other studies lead to a reasonable potential for take (see Estimated Take immune responses (e.g., Seyle, 1950; expectation that some marine mammals section). There are few studies that Moberg, 2000). In many cases, an will experience physiological stress obtained detailed beaked whale animal’s first and sometimes most responses upon exposure to acoustic behavioral data in response to economical (in terms of energetic costs) stressors and that it is possible that echosounders (e.g., Quick et al. (2016), response is behavioral avoidance of the some of these would be classified as Cholewiak et al. (2017)) as more effort potential stressor. Autonomic nervous ‘‘distress.’’ In addition, any animal has been focused on mid-frequency system responses to stress typically experiencing TTS would likely also active sonar (e.g., Cox et al. (2006), involve changes in heart rate, blood experience stress responses (NRC, Tyack et al. (2006, 2011). In 2013, pressure, and gastrointestinal activity. 2003). passive acoustic monitoring of beaked These responses have a relatively short Auditory masking—Sound can whales in the Atlantic Ocean occurred duration and may or may not have a disrupt behavior through masking, or during and in absence of prey studies significant long-term effect on an interfering with, an animal’s ability to using an EK60 echosounder (Cholewiak animal’s fitness. detect, recognize, or discriminate et al., 2017). There was a significant Neuroendocrine stress responses often between acoustic signals of interest (e.g., reduction of acoustic detections during involve the hypothalamus-pituitary- those used for intraspecific echosounder use; indicating beaked adrenal system. Virtually all communication and social interactions, whales may have moved out of the neuroendocrine functions that are prey detection, predator avoidance, detection range, initiated directed affected by stress—including immune navigation) (Richardson et al., 1995; movement away from the ship, the competence, reproduction, metabolism, Erbe et al., 2016). Masking occurs when animals remained in the area but and behavior—are regulated by pituitary the receipt of a sound is interfered with temporarily suspend foraging activity. hormones. Stress-induced changes in by another coincident sound at similar The authors also noted that due to some the secretion of pituitary hormones have frequencies and at similar or higher potential outliers in the data, the been implicated in failed reproduction, intensity, and may occur whether the analysis may not be sensitive enough to altered metabolism, reduced immune sound is natural (e.g., snapping shrimp, fully evaluate the relationship between competence, and behavioral disturbance wind, waves, precipitation) or beaked whale sightings and (e.g., Moberg, 1987; Blecha, 2000). anthropogenic (e.g., shipping, sonar,

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seismic exploration) in origin. The Masking affects both senders and may have contributed to the avoidance ability of a noise source to mask receivers of acoustic signals and can responses that led to the eventual biologically important sounds depends potentially have long-term chronic entrapment and mortality of the whales. on the characteristics of both the noise effects on marine mammals at the Specifically, shoreward-directed surface source and the signal of interest (e.g., population level as well as at the currents and elevated chlorophyll levels signal-to-noise ratio, temporal individual level. Low-frequency in the area preceding the event may variability, direction), in relation to each ambient sound levels have increased by have played a role (Southall et al., other and to an animal’s hearing as much as 20 dB (more than three times 2013). The report also notes that prior abilities (e.g., sensitivity, frequency in terms of SPL) in the world’s ocean use of a similar system in the general range, critical ratios, frequency from pre-industrial periods, with most area may have sensitized the animals discrimination, directional of the increase from distant commercial and also concluded that, for odontocete discrimination, age or TTS hearing loss), shipping (Hildebrand, 2009). All cetaceans that hear well in higher and existing ambient noise and anthropogenic sound sources, but frequency ranges where ambient noise is propagation conditions. especially chronic and lower-frequency typically quite low, high-power active Under certain circumstances, marine signals (e.g., from vessel traffic), sonars operating in this range may be mammals experiencing significant contribute to elevated ambient sound more easily audible and have potential masking could also be impaired from levels, thus intensifying masking. effects over larger areas than low maximizing their performance fitness in We have also considered the potential frequency systems that have more survival and reproduction. Therefore, for severe behavioral responses such as typically been considered in terms of when the coincident (masking) sound is stranding and associated indirect injury anthropogenic noise impacts. It is, man-made, it may be considered or mortality from SEFSC acoustic survey however, important to note that the harassment when disrupting or altering equipment, on the basis of a 2008 mass relatively lower output frequency, critical behaviors. It is important to stranding of approximately one hundred higher output power, and complex distinguish TTS and PTS, which persist melon-headed whales in a Madagascar nature of the system implicated in this after the sound exposure, from masking, lagoon system. An investigation of the event, in context of the other factors which occurs during the sound event indicated that use of a high- noted here, likely produced a fairly exposure. Because masking (without frequency mapping system (12-kHz unusual set of circumstances that resulting in TS) is not associated with multibeam echosounder; it is important indicate that such events would likely to note that all SEFSC sources operate abnormal physiological function, it is remain rare and are not necessarily at higher frequencies (see Table 1)) was not considered a physiological effect, relevant to use of lower-power, higher- the most plausible and likely initial but rather a potential behavioral effect. frequency systems more commonly used behavioral trigger of the event, while The frequency range of the potentially for scientific applications. The risk of providing the caveat that there is no similar events recurring may be very masking sound is important in unequivocal and easily identifiable determining any potential behavioral low, given the extensive use of active single cause (Southall et al., 2013). The acoustic systems used for scientific and impacts. For example, low-frequency panel’s conclusion was based on (1) signals may have less effect on high- navigational purposes worldwide on a very close temporal and spatial daily basis and the lack of direct frequency echolocation sounds association and directed movement of produced by odontocetes but are more evidence of such responses previously the survey with the stranding event; (2) reported. likely to affect detection of mysticete the unusual nature of such an event communication calls and other coupled with previously documented Characteristics of the sound sources potentially important natural sounds apparent behavioral sensitivity of the predominantly used by SEFSC further such as those produced by surf and species to other sound types (Southall et reduce the likelihood of effects to some prey species. The masking of al., 2006; Brownell et al., 2009); and (3) marine mammals, as well as the communication signals by the fact that all other possible factors intensity of effect assuming that an anthropogenic noise may be considered considered were determined to be animal perceives the signal. Intermittent as a reduction in the communication unlikely causes. Specifically, regarding exposures—as would occur due to the space of animals (e.g., Clark et al., 2009) survey patterns prior to the event and in brief, transient signals produced by and may result in energetic or other relation to bathymetry, the vessel these sources—require a higher costs as animals change their transited in a north-south direction on cumulative SEL to induce TTS than vocalization behavior (e.g., Miller et al., the shelf break parallel to the shore, would continuous exposures of the 2000; Foote et al., 2004; Parks et al., ensonifying large areas of deep-water same duration (i.e., intermittent 2007b; Di Iorio and Clark, 2009; Holt et habitat prior to operating intermittently exposure results in lower levels of TTS) al., 2009). Masking can be reduced in in a concentrated area offshore from the (Mooney et al., 2009a; Finneran et al., situations where the signal and noise stranding site. This may have trapped 2010). In addition, intermittent come from different directions the animals between the sound source exposures recover faster in comparison (Richardson et al., 1995), through and the shore, thus driving them with continuous exposures of the same amplitude modulation of the signal, or towards the lagoon system. The duration (Finneran et al., 2010). through other compensatory behaviors investigatory panel systematically Although echosounder pulses are, in (Houser and Moore, 2014). Masking can excluded or deemed highly unlikely general, emitted rapidly, they are not be tested directly in captive species nearly all potential reasons for these dissimilar to odontocete echolocation (e.g., Erbe, 2008), but in wild animals leaving their typical pelagic click trains. Research indicates that populations it must be either modeled habitat for an area extremely atypical for marine mammals generally have or inferred from evidence of masking the species (i.e., a shallow lagoon extremely fine auditory temporal compensation. There are few studies system). Notably, this was the first time resolution and can detect each signal addressing real-world masking sounds that such a system has been associated separately (e.g., Au et al., 1988; Dolphin likely to be experienced by marine with a stranding event. et al., 1995; Supin and Popov, 1995; mammals in the wild (e.g., Branstetter et The panel also noted several site- and Mooney et al., 2009b), especially for al., 2013). situation-specific secondary factors that species with echolocation capabilities.

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Therefore, it is likely that marine from scientific sonars and pingers (36– banded drum and star drum. In the mammals would indeed perceive 60 kHz) despite being very close to the GOMRA, the species caught in greatest echosounder signals as being transducers. But Gerrodette and Pettis abundance is the Atlantic croaker intermittent. (2005) report that when a 38-kHz followed by the longspine porgy and We conclude here that, on the basis of echosounder and ADCP were on (1) the Rough scad. In the CRA, the horse-eye available information on hearing and average size of detected schools of jack and yellowtail snapper comprise potential auditory effects in marine spotted dolphins and pilot whales was the greatest catch. However, in all mammals, the potential for threshold decreased; (2) perpendicular sighting research areas, the total amount of these shift from exposure to fishery research distances increased for spotted and species taken in research surveys is very sonar is low to discountable. High- spinner dolphins; and (3) sighting rates small relative to their overall biomass in frequency cetacean species would be the decreased for beaked whales. the area (See Section 4.2.3 of the SEFSC most likely to potentially incur some As described above, behavioral EA for more information on fish catch minimal amount of temporary hearing responses of marine mammals are during research surveys). Tables 4.2–8 loss from a vessel operating high- extremely variable, depending on through 4.2–12 in the SEFSC’s Draft EA frequency sonar sources, and the multiple exposure factors, with the most indicate that, while mortality to fish potential for PTS to occur for any common type of observed response species is a direct effect of the SEFSC species is so unlikely as to be being behavioral avoidance of areas Atlantic Research Area surveys, there discountable. Even for high-frequency around aversive sound sources. Certain are likely no measurable population cetacean species, individuals would odontocete cetaceans (particularly changes occurring as a result of these have to make a very close approach and harbor porpoises and beaked whales) research activities because they also remain very close to vessels are known to avoid high-frequency represent such a small percentage of operating these sources in order to sound sources in both field and allowable quota in commercial and receive multiple exposures at relatively laboratory settings (e.g., Kastelein et al., recreational fisheries, which are just high levels, as would be necessary to 2000, 2005b, 2008a, b; Culik et al., 2001; fractions of the total populations for cause TTS. Additionally, given that Johnston, 2002; Olesiuk et al., 2002; these species. behavioral responses typically include Carretta et al., 2008). There is some In addition to the small total biomass the temporary avoidance that might be additional, low probability for masking taken, some of the size classes of fish expected (see below), the potential for to occur for high-frequency specialists, targeted in research surveys are very auditory effects considered but similar factors (directional beam small, and these small size classes are physiological damage (injury) is pattern, transient signal, moving vessel) not known to be prey of marine considered extremely low in relation to mean that the significance of any mammals. Research catches are also realistic operations of these devices. potential masking is probably distributed over a wide area because of Given the fact that fisheries research inconsequential. the random sampling design covering survey vessels are moving, the large sample areas. Fish removals by Anticipated Effects on Marine Mammal likelihood that animals may avoid the research are therefore highly localized Habitat vessel to some extent based on either its and unlikely to affect the spatial physical presence or due to aversive Effects to prey—In addition to direct, concentrations and availability of prey sound (vessel or active acoustic or operational, interactions between for any marine mammal species. The sources), and the intermittent nature of fishing gear and marine mammals, overall effect of research catches on many of these sources, the potential for indirect (i.e., biological or ecological) marine mammals through competition TTS is probably low for high-frequency interactions occur as well, in which for prey may therefore be considered cetaceans and very low to zero for other marine mammals and fisheries both insignificant for all species. species. utilize the same resource, potentially Acoustic habitat—Acoustic habitat is Based on the source operating resulting in competition that may be the soundscape—which encompasses characteristics, most of these sources mutually disadvantageous (e.g., all of the sound present in a particular may be detected by odontocete Northridge, 1984; Beddington et al., location and time, as a whole—when cetaceans (and particularly high- 1985; Wickens, 1995). Marine mammal considered from the perspective of the frequency specialists such as porpoises) prey varies by species, season, and animals experiencing it. Animals but are unlikely to be audible to location and, for some, is not well produce sound for, or listen for sounds mysticetes (i.e., low-frequency documented. There is some overlap in produced by, conspecifics cetaceans) and some pinnipeds. While prey of marine mammals and the (communication during feeding, mating, low-frequency cetaceans and pinnipeds species sampled and removed during and other social activities), other have been observed to respond SEFSC research surveys, with primary animals (finding prey or avoiding behaviorally to low- and mid-frequency prey of concern being zooplankton, predators), and the physical sounds (e.g., Frankel, 2005), there is estuarine fishes, and invertebrates. The environment (finding suitable habitats, little evidence of behavioral responses majority of fish affected by SEFSC- navigating). Together, sounds made by in these species to high-frequency affiliated research projects are caught animals and the geophysical sound exposure (e.g., Jacobs and and killed during these six annual environment (e.g., produced by Terhune, 2002; Kastelein et al., 2006). If surveys: SEAMAP–SA Coastal Trawl earthquakes, lightning, wind, rain, a marine mammal does perceive a signal Survey, SEAMAP–GOM Shrimp/ waves) make up the natural from a SEFSC active acoustic source, it Groundfish (Summer/Fall) Trawl, Small contributions to the total acoustics of a is likely that the response would be, at Pelagics Trawl Survey, Shark and Red place. These acoustic conditions, most, behavioral in nature. Behavioral Snapper Bottom Longline Survey, termed acoustic habitat, are one reactions of free-ranging marine SEAMAP–GOM Shrimp/Groundfish attribute of an animal’s total habitat. mammals to scientific sonars are likely (Summer/Fall) Trawl Survey, and the Soundscapes are also defined by, and to vary by species and circumstance. For MARMAP Reef Fish Long Bottom acoustic habitat influenced by, the total example, Watkins et al. (1985) note that Longline Survey. The species caught in contribution of anthropogenic sound. sperm whales did not appear to be greatest abundance in the ARA are the This may include incidental emissions disturbed by or even aware of signals great northern tilefish, Atlantic bumper, from sources such as vessel traffic, or

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may be intentionally introduced to the SEFSC activities would not be expected further reduce risk of take and degree of marine environment for data acquisition to have any other impacts on physical take. purposes (as in the SEFSC’s use of habitat. Estimated Take Due to Gear Interaction active acoustic sources). Anthropogenic As described in the preceding, the noise varies widely in its frequency potential for SEFSC research to affect Given the complex stock structure of content, duration, and loudness, and the availability of prey to marine bottlenose dolphins throughout the these characteristics greatly influence mammals or to meaningfully impact the ARA and GOMRA as well as the the potential habitat-mediated effects to quality of physical or acoustic habitat is vulnerability of this species to be taken marine mammals (please see also the considered to be insignificant for all incidental to fishery research, we have previous discussion on masking under species. Effects to habitat will not be partitioned this section into two ‘‘Acoustic Effects’’), which may range discussed further in this document. categories to present requested and proposed take in an organized manner. from local effects for brief periods of Estimated Take time to chronic effects over large areas Below we present our analysis and for long durations. Depending on This section provides an estimate of informing the proposed take of estuarine the extent of effects to habitat, animals the number of incidental takes proposed and coastal bottlenose dolphins may alter their communications signals for authorization through this IHA, followed by pelagic marine mammals (thereby potentially expending which will inform both NMFS’ which includes all relevant non- additional energy) or miss acoustic cues consideration of whether the number of bottlenose dolphin species and open (either conspecific or adventitious). For takes is ‘‘small’’ and the negligible ocean stocks of bottlenose dolphins. more detail on these concepts see, e.g., impact determination. When discussing take, we consider three manners of take: Estuarine and Coastal Bottlenose Barber et al., 2010; Pijanowski et al., Dolphin Take—SEFSC 2011; Francis and Barber, 2013; Lillis et Mortality, serious injury, and al., 2014. harassment. Serious injury is defined as In order to estimate the number of As described above (‘‘Acoustic an injury that could lead to mortality potential bottlenose dolphin takes in Effects’’), the signals emitted by SEFSC while injury refers to injury that does estuarine and coastal waters, we active acoustic sources are of higher not lead to mortality. Except with considered the SEFSC’s and TPWD’s frequencies, short duration with high respect to certain activities not pertinent record of such past incidents and other directionality, and transient. These here, the MMPA defines ‘‘harassment’’ sources of take (e.g., commercial factors mean that the signals will likely as any act of pursuit, torment, or fisheries and non-SEFSC or TPWD attenuate rapidly (not travel over great annoyance which (i) has the potential to affiliated research). We consulted the distances), may not be perceived or injure a marine mammal or marine SARs, marine mammal experts at the affect perception even when animals are mammal stock in the wild (Level A SEFSC, and information emerging from in the vicinity, and would not be harassment); or (ii) has the potential to the BDTRT to identify these other considered chronic in any given disturb a marine mammal or marine sources of mortality. We then assessed location. SEFSC use of these sources is mammal stock in the wild by causing the similarities and differences between widely dispersed in both space and disruption of behavioral patterns, fishery research and commercial time. In conjunction with the prior including, but not limited to, migration, fisheries gear and fishing practices. factors, this means that it is highly breathing, nursing, breeding, feeding, or Finally, we evaluated means of affecting unlikely that SEFSC use of these sources sheltering (Level B harassment). the least practicable adverse impact on would, on their own, have any As previously described, the SEFSC bottlenose dolphins through the appreciable effect on acoustic habitat. has a history of take of marine mammals proposed mitigation and additional Physical habitat—The SEFSC incidental to fisheries research. The mitigation developed during the conducts some bottom trawling, which degree of take resulting from gear proposed rulemaking process. may physically damage seafloor habitat. interaction can range from mortality, In total, since 2001 and over the Physical damage may include furrowing serious injury, Level A harassment course of thousands of hours of research and smoothing of the seafloor as well as (injury), or released unharmed with no effort, 15 marine mammals (all the displacement of rocks and boulders, observable injury. However, given that bottlenose dolphins) have been and such damage can increase with we cannot predict the degree of take, we entangled in SEFSC-affiliated research multiple contacts in the same area conservatively assume that any gear. All takes occurred between April (Morgan and Chuenpagdee, 2003; interaction may result in mortality or through October; however, this is likely Stevenson et al., 2004). Damage to serious injury and have issued take as a result of research effort concentrated seafloor habitat may also harm infauna such. In the case of the Mississippi during this time period and there does and epifauna (i.e., animals that live in Sound stock, we have also authorized a not appear to be any trend in increased or on the seafloor or on structures on the single take from Level A harassment vulnerability throughout the year. seafloor), including corals. In general, (injury) only. The amount of research In the ARA, the SEFSC has nine physical damage to the seafloor would conducted in Mississippi Sound using documented takes of bottlenose be expected to recover within eighteen gear with the potential for marine dolphins (in 8 instances) from fishing months through the action of water mammal interaction increases the gear (Table 5) and 1 take of an Atlantic currents and natural sedimentation, potential for interaction above other spotted dolphin. The Atlantic spotted with the exception of rocks and estuarine systems. However, there is dolphin take was a calf struck by a boulders which may be permanently evidence that, even without the propeller during a marine mammal displaced (Stevenson et al., 2004). proposed prescribed mitigation and research cruise. Given the anomalous Relatively small areas would be monitoring measures, take may not nature of the incident and proposed impacted by SEFSC bottom trawling result in mortality or serious injury (e.g., mitigation measures, NMFS is not and, because such surveys are the October 13, 2013 skimmer trawl take proposing to authorize take by ship conducted in the same areas but not in which did not result in serious injury or strike. Therefore, this take is not the exact same locations, they are mortality). The proposed mitigation and discussed further. Of the eight gear- expected to cause single rather than monitoring measures described in this related takes, two animals were taken at repeated disturbances in any given area. proposed rulemaking are designed to once in a trammel net by the SCDNR in

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2002. However, the SCDNR has since from the NNCES stock have been taken The SEAMAP–SA Pamlico Sound changed fishing methods and from SEFSC or partner fishery research Trawl Survey (NCDENR) is conducted implemented monitoring and mitigation surveys, including those described to support stock assessments and measures essentially eliminating the above which have taken place for many management of finfish, shrimp, and crab potential for take during this survey. No years. species in Pamlico Sound and its bays other trammel net-related takes have Despite the lack of historical take, we and rivers. The otter trawl survey takes occurred since these changes were further investigated the potential for place for 10 days in June and 10 days implemented. Therefore, we believe the future interaction. Based on commercial in September during daylight hours. Up potential for a take in SCDNR trammel fishery and SEFSC fishery survey to 54 trawls are completed each month nets is discountable. The remaining six bycatch rates of marine mammals, we (total = 108 trawls) aboard the R/V gear-related takes have been a result of would expect the trawl surveys to be Carolina Coast. The general area of interaction with bottom trawl gear more likely to take a dolphin than the operation is Pamlico Sound and the during SEAMAP and TED research bottom longline surveys. An evaluation Pamlico, Pungo, and Neuse rivers in of each survey type occurring is surveys resulting in an average 0.38 waters greater than or equal to 6 ft. provided below to more thoroughly takes per year (6 takes/16 years). Despite spatial and temporal overall To further assess the potential for take evaluate the potential for taking a with the NNCES stock, this survey has in any given year, we considered where bottlenose dolphin belonging to the takes have occurred and the possible NNCES stock. no record of interacting with a marine stock origin from which an animal was The Atlantic Striped Bass Bottom mammal. Given the lack of historical taken. The July 2006 take occurred Trawl Survey (conducted by the interaction, limited number of tows, and offshore of Fripp Island, SC; the October USFWS) is limited to two weeks (200– implementation of the proposed 2006 take occurred off Oak Island, NC; 350 trawls) during January and February monitoring and mitigation measures, we the July 2012 take occurred off Little in coastal waters north of Cape Hatteras do not believe there is reasonable Tybee Island, GA; the August 2012 take ranging from 30 to 120 ft in depth. The likelihood of take from this survey. occurred off Pawley’s Island, SC; the USFWS uses dual 65-ft trawl nets with The SEAMAP–SA Coastal Trawl April 2014 take occurred just off the 3.75 in. stretch nylon multifilament Survey (SCDNR) operates 300–350 coast of Florida between St. Augustine mesh codend. Tow speed is 3 kts and trawls annually from Cape Hatteras, NC and Daytona Beach; and the July 2016 tow time does not exceed 30 minutes at to Cape Canaveral, FL in nearshore take occurred off Sea Island, Georgia depth. Trawl operations are conducted oceanic waters of 15–30 ft depth. Its which is nestled between Little St. day and night from the R/V Oregon II, goal is collect long-term fishery Simon’s Island and St. Simon’s Island. R/V Oregon, or R/V Savannah (please independent data on ecologically, Therefore, the dolphins taken could refer to the EA for detailed vessel commercially, and recreationally have originated from any of the five descriptions). The winter operations of important fishes and invertebrates, coastal stocks (the Northern Migratory this survey overlaps in time with when including shrimp and blue crab. Tow and Southern Migratory stock, South some animals move out of Pamlico time is approximately 20 minutes. This Sound and into coastal waters. Carolina/Georgia Coastal stock, survey is not associated with sea turtle However, photo-ID studies, available tag Northern Florida Coastal stock and a research surveys, which have longer tow data and stable isotope data indicate Central Florida stock), although they times. SCDNR uses the R/V Lady Lisa were assigned to the stock based on the that the portion of the stock that moves outfitted with an otter trawl comprised location where the take occurred. out of Pamlico Sound into coastal of paired mongoose-type Falcon bottom Taking the average rate of 0.38 animals/ waters remain south of Cape Hatteras trawls. All takes of dolphins have five stocks equates to an average taking during cold water months (Waring et al. of 0.08 animals per stock per year. This 2016). The USFWS has historically occurred in coastal waters (none from average would be even less if one conducted surveys north of Cape estuarine waters), and all assigned takes considers an estuarine stock may be the Hatteras. However, the survey is have been from coastal stocks. However, stock of origin. currently inactive due to funding because estuarine stocks may venture According to the SEFSC’s application, constraints. If funding becomes into coastal waters, there is a small three trawl surveys and 2 bottom available, they may undertake this possibility takes from this survey could longline surveys conducted by the survey. However, the spatial and have been from the SNCES (n=1), SEFSC or research partner overlap temporal specifications described above Northern South Carolina Estuarine spatially with the NNCES stock (Table greatly reduce the likelihood of a take System (n=1), Northern Georgia/ 1). These are the Atlantic Striped Bass from the NNCES stock. In addition, Southern South Carolina Estuarine Tagging Bottom Trawl Survey (USFWS), given the short duration of the survey (2 System (n= 2), and Southern Georgia SEAMAP–SA Coastal Trawl Survey weeks) and short tow time durations (up Estuarine System (n=1) (Table 6). This (SCDNR), SEAMAP–SA North Carolina to 30 minutes), the chance of marine is the only survey which may Pamlico Sound Trawl Survey mammal interaction is limited. This potentially overlap with the NNCES and (NCDENR), Shark and Red Snapper logic is supported by the lack of take SNCES stock but does so in coastal Bottom Longline Survey (SEFSC), and from this survey. At this time, for the waters where coastal stocks overlap in the SEAMAP–SA Red Drum Bottom reasons described above, we believe the time and space. It is most likely a take Longline Survey (NCDNR). No gillnet likelihood of an animal from the NNCES from this survey would be from a surveys would take place in waters stock being taken during Atlantic coastal stock. Therefore, we are not overlapping with this stock. Based on Striped Bass Bottom Trawl Survey is proposing to authorize take from the data in the PSIT database, no dolphins unlikely. NNCES or SNCES stock.

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TABLE 6—POSSIBLE STOCK ORIGIN OF BOTTLENOSE DOLPHINS TAKEN IN THE ARA

Possible Stocks Date Location Taken Coastal Estuarine.

2001 ...... Unknown ...... Unknown ...... Unknown. July 2006 ...... Off Fripp Island, GA ...... W.N. Atlantic South Carolina-Georgia Northern Georgia/Southern South Coastal. Carolina Estuarine System. October 2006 ...... Off Oak Island, NC ...... Southern Migratory ...... Southern North Carolina Estuarine System. July 2012 ...... Off Little Tybee Island, GA ...... W.N. Atlantic South Carolina-Georgia Northern Georgia/Southern South Coastal. Carolina Estuarine System. August 2012 ...... Off Pawley’s Island, SC ...... W.N. Atlantic South Carolina-Georgia Northern South Carolina Estuarine Coastal. System. April 2014 ...... Off the coast of Florida between St. W.N. Atlantic Northern Florida Coastal W.N. Atlantic Central Florida Coastal. Augustine and Daytona Beach. July 2016 ...... Off Sea Island, Georgia ...... W.N. Atlantic South Carolina-Georgia Southern Georgia Estuarine System. Coastal.

The only survey overlapping with the take place during the proposed 5-year Hence, we find the potential for take Indian River Lagoon (IRL) stock is the regulations. from the Barataria Bay stock is St. Lucie Rod-and-Reel Fish Health When examining the survey gear used discountable and we are not proposing Study. There are no documented and fishing methods, we determined to authorize the requested take. instances of the SEFSC taking a dolphin that the IJA Open Bay Shellfish Trawl On December 22, 2017, the SEFSC from this survey. Therefore, we believe Survey (conducted by TPWD) has a very indicated the Gulfspan shark survey the likelihood of take is low and low potential to take dolphins. This conducted by University of West Florida mitigation measures (e.g. quickly reeling survey has no documented dolphin/gear (UWF) is considered inactive as of 2017 in line if dolphins are likely to interact interactions despite high fishing effort and would not likely take place over the with gear) would be effective at further (90 trawls for month/1080 trawls per course of the proposed regulations due reducing take potential to discountable. year). This is likely because TPWD uses to staffing changes. This is the only In consideration of this, we are not a very small (20 ft wide) otter shrimp survey overlapping with the Perdido trawl which is towed for only 10 proposing to issue take of the IRL stock. Bay, Pensacola Bay, Choctawhatchee minutes in 3–30 ft of water. The nets In summary, we are not proposing to Bay stocks. Therefore, we find the can be retrieved within one to two authorize requested take in the ARA for potential for take from these stocks is minutes. The IJA Open Bay Shellfish the NNCES, SNCES, and Indian River discountable and we are not proposing Trawl Survey is the only survey Lagoon stocks due to low to to authorize the requested take. conducted by the SEFSC that overlaps discountable potential for take. For all with the following BSE bottlenose There are nine surveys in the GOMRA other estuarine stocks for which take dolphin stocks: Laguna Madre; Nueces overlapping with the Mississippi was requested (n=7), we are proposing Bay, Corpus Christi Bay; Copano Bay, Sound, Lake Borgne, Bay Boudreau to authorize the requested 1 take over 5 Aransas Bay, San Antonio Bay, Redfish stock (MS Sound stock): Four trawl, years by M/SI (Table 7). We are Bay, Espirtu Santo Bay; Matagorda Bay, three gillnet, and two hook and line. proposing to issue the requested 3 M/SI Tres Palacios Bay, Lavaca Bay; West While there are four documented takes takes per stock of each of the coastal Bay, and Galveston Bay, East Bay, from this stock since 2011 (from gillnet stocks and the offshore stock in the ARA Trinity Bay. TPWD has no documented and trawl surveys), there are none prior over 5 years (Table 7). take of dolphins from the IJA Open Bay to that year. The SEFSC requested three In the GOMRA, the SEFSC is Shellfish Trawl Survey despite years of M/SI takes from the MS Sound stock requesting to take one dolphin from research effort. Due to the discountable due to the amount of fishing effort in each of the 21 estuarine stocks, three potential for take from the IJA Open Bay this waterbody. However, we find two dolphins from the Mississippi Sound Shellfish Trawl Survey, we are not takes are warranted over the life of the stock, and three dolphins per year from proposing to authorize take of these 5-year regulations given the lack of take the coastal stocks (Table 7). Similar to Texas bottlenose dolphin stocks to the prior to 2011 and implementation of the the ARA, NMFS examined the SEFSC’s SEFSC. proposed mitigation and monitoring request and assessed authorizing take Another stock with a discountable measures. Further, previous takes based on fishing effort and stock spatial potential for take is the Barataria Bay indicate there is potential that a marine and temporal parameters, the potential stock. This stock’s habitat includes mammal may not die or be seriously for take based on fishing practices (e.g., Caminada Bay, Barataria Bay east to injured in fishing gear but be injured. gear description, tow/soak times). In Bastian Bay, Bay Coquette, and Gulf Therefore, we are proposing to authorize addition, the SEFSC has provided coastal waters extending 1 km from the one take by M/SI and one take by Level supplemental information indicating shoreline. The SEFSC has committed to A harassment for the Mississippi Sound some surveys are discontinued or avoiding conducting fisheries stock over the 5-year regulations (Table currently inactive and are not likely to independent monitoring in these waters. 7).

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TABLE 7—SEFSC TOTAL REQUESTED AND PROPOSED TAKE OF BOTTLENOSE DOLPHINS IN ARA, GOMRA, AND CRA OVER THE LIFE OF THE PROPOSED 5-YEAR REGULATIONS

Total re- Stock quested take Total proposed take (M/SI ) (M/SI )

Northern North Carolina Estuarine System Stock ...... 1 1 0 Southern North Carolina Estuarine System Stock ...... 1 1 0 Northern South Carolina Estuarine Stock ...... 1 1 Charleston Estuarine System Stock ...... 1 1 Northern Georgia/Southern South Carolina Estuarine System Stock ...... 1 1 Central Georgia Estuarine System ...... 1 1 Southern Georgia Estuarine System Stock ...... 1 1 Jacksonville Estuarine System Stock ...... 1 1 Indian River Lagoon Estuarine System Stock ...... 1 1 0 Biscayne Bay Stock ...... 0 0 Florida Bay Stock ...... 1 1 Western North Atlantic South Carolina/Georgia Coastal Stock ...... 3 3 Western North Atlantic Northern Florida Coastal Stock ...... 3 3 Western North Atlantic Central Florida Coastal Stock ...... 3 3 Western North Atlantic Northern Migratory Coastal Stock ...... 3 3 Western North Atlantic Southern Migratory Coastal Stock ...... 3 3 Western North Atlantic Offshore Stock ...... 3 3 Puerto Rico and US Virgin Islands Stock ...... 1 1 Laguna Madre ...... 1 1 0 Nueces Bay, Corpus Christi Bay ...... 1 1 0 Copano Bay, Aransas Bay, San Antonio Bay, Redfish Bay, Espirtu Santo Bay ...... 1 1 0 Matagorda Bay, Tres Palacios Bay, Lavaca Bay ...... 1 1 0 West Bay ...... 1 1 0 Galveston Bay, East Bay, Trinity Bay ...... 1 1 0 Sabine Lake ...... 1 1 0 Calcasieu Lake ...... 0 0 Atchalfalaya Bay, Vermilion Bay, West Cote Blanche Bay ...... 0 0 Terrabonne Bay, Timbalier Bay ...... 1 1 Barataria Bay Estuarine System ...... 1 2 0 Mississippi River Delta ...... 1 1 Mississippi Sound, Lake Bornge, Bay Boudreau ...... 3 3 1 M/SI, 1 Level A Mobile Bay, Bonsecour Bay ...... 1 1 Perdido Bay ...... 1 2 0 Pensacola Bay, East Bay ...... 1 2 0 Choctwhatchee Bay ...... 1 2 0 St. Andrew Bay ...... 1 1 St. Joseph Bay ...... 1 1 St. Vincent Sound, Apalachiola Bay, St. George Sound ...... 1 1 Apalachee Bay ...... 1 1 Waccasassa Bay, Withlacoochee Bay, Crystal Bay ...... 1 1 St. Joseph Sound, Clearwater Harbor ...... 0 0 Tampa Bay ...... 0 0 Sarasota Bay, Little Sarasota Bay ...... 0 0 Pine Island Sound, Charlotte Harbor, Gasparilla Sound, Lemon Bay ...... 1 1 Caloosahatchee River ...... 0 0 Estero Bay ...... 0 0 Chokoloskee Bay, Ten Thousand Islands, Gullivan Bay ...... 1 1 Whitewater Bay ...... 0 0 Florida Keys-Bahia Honda to Key West ...... 0 0 Northern Gulf of Mexico Western Coastal Stock ...... 3 3 Northern Gulf of Mexico Northern Coastal Stock ...... 3 3 Northern Gulf of Mexico Eastern Coastal Stock ...... 3 3 1 Surveys overlapping these stocks have a low to discountable potential to take marine mammals due to temporal and spatial overlap with stock, fishing methods, and/or gear types. The SEFSC has no history of taking individuals from these stocks. 2 No surveys are proposed that overlap with these stocks. 3 The SEFSC has the potential to take one marine mammal by M/SI and one marine mammal by Level A harassment (injury) only for the Mis- sissippi Sound stock.

Estuarine Bottlenose Dolphin Take— Bay, and Galveston Bay), therefore, how often future takes could occur. TPWD TPWD has not requested, and we are not TPWD has taken 32–35 bottlenose During gillnet surveys, the TPWD may proposing, to authorize take from these dolphins during the 35 years of gillnet incidentally take bottlenose dolphins. stocks as the potential for take from fishing (exact number is not clear due to TPWD conducts research in seven major these stocks is discountable. potential errors in early reporting and bays, sounds, and estuaries in Texas. Historical take from TPWD’s gillnet record keeping). In 18 of the 35 years There is no history of take in three of surveys is random in time and space (52 percent) there were zero dolphins those waterbodies (Sabine Lake, West making it difficult to predict where and taken (see Table 3 in TPWD’s

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application). However, the long term Pelagic Marine Mammals Take—SEFSC the most recent five-year period average equates to approximately one Since systematic record keep began in (generally) for which data has been animal per year (32–34 dolphins in 35 2002, the SEFSC and affiliated research analyzed: Category I, frequent incidental years) To cover the life of the 5-yr partners have taken no marine mammals M/SI; Category II, occasional incidental regulations, this would equate to five species other than bottlenose dolphins M/SI; and Category III, remote takes. However, TPWD would remove due to gear interaction. However, NMFS likelihood of or no known incidental M/ grids meeting ‘‘hot spot’’ criteria and has assessed other sources of M/SI for SI. In accordance with the MMPA (16 remove potential sources of these species (e.g., commercial fishing) U.S.C. 1387(e)) and 50 CFR 229.6, any entanglement (e.g., the gap between the to inform the potential for incidental vessel owner or operator, or gear owner float line and the net). Therefore, we are takes of marine mammals in the ARA, or operator (in the case of non-vessel proposing to issue one M/SI take from GOMRA, and CRA under this proposed fisheries), participating in a fishery each of the previously taken stocks over rule. These species have not been taken listed on the LOF must report to NMFS the life of the proposed regulations for historically by SEFSC research activities all incidental mortalities and injuries of a total of four takes over the life of the but inhabit the same areas and show marine mammals that occur during regulations. We also consider that the similar types of behaviors and commercial fishing operations, regulations would be conditioned with vulnerabilities to such gear used in mitigation measures designed to reduce regardless of the category in which the other contexts. To more fishery is placed. The LOF for 2016 was the risk of take (e.g., new gear comprehensively identify where based on, among other things, stranding modification, removal of sampling areas vulnerability and potential exists for data; fisher self-reports; and SARs, deemed dolphin ‘‘hot spots’’). take between SEFSC research and other Therefore, NMFS is proposing to issue species of marine mammals, we primarily the 2014 SARs, which are one take by M/SI from the following compared with similar commercial generally based on data from 2008– stocks of bottlenose stocks: (1) Laguna fisheries by way of the 2017 List of 2012. Table 8 indicates which species Madre; (2) Corpus Christi Bay, Nueces Fisheries (LOF) and the record of (other than bottlenose dolphins) have Bay; (3) Copano Bay, Aransas Bay, San interactions from non-SEFSC affiliated been known to interact with commercial Antonio Bay, Redfish Bay, Espiritu research. fishing gear in the three research areas Santa Bay; and (4) MatagordaBay, Tres NMFS LOF classifies U.S. commercial based on the 2016 LOF (81 FR 20550; Palacios Bay, Lavaca Bay. In total, four fisheries into one of three categories April 8, 2016). More information on the M/SI takes (one from each stock) would according to the level of incidental 2016 LOF can be found at http:// be authorized over the life of the marine mammal M/SI that is known to www.nmfs.noaa.gov/pr/interactions/ proposed regulations. have occured on an annual basis over fisheries/lof.html.

TABLE 8—GEAR TYPES IMPLICATED FOR INTERACTION WITH MARINE MAMMALS IN THE ATLANTIC OCEAN, GULF OF MEXICO, AND CARIBBEAN COMMERCIAL FISHERIES

Fishery by Gear Type 1 Species Gillnet Trawl Fisheries Fisheries Trap/Pot Longline

N. Atlantic right whale ...... Y ...... Y ...... Humpback whale ...... Y ...... Y ...... Fin whale ...... Y ...... Y ...... Minke whale ...... Y Y Y Y Risso’s dolphin ...... Y Y ...... Y Cuvier’s beaked whale ...... Y Gervais beaked whale ...... Y Beaked whale (Mesoplodon spp) ...... Y False killer whale ...... Y Killer whale ...... Y Pygmy sperm whale ...... Y Sperm Whale ...... Y Long-finned pilot whale ...... Y Y ...... Y Short-finned pilot whale ...... Y White-sided dolphin ...... Y Y ...... Atlantic spotted dolphin ...... Y ...... Y Pantropical spotted dolphin ...... Y ...... Y Common dolphin ...... Y Y ...... Y Harbor porpoise ...... Y Y ...... Harbor seal ...... Y Y Y ...... Gray seal ...... Y ...... 1 Only fisheries with gear types used by the SEFSC during the course of the proposed regulations are included here. For example, purse seine and aquaculture fisheries are also known to interact with marine mammals in the specified geographic region; however, the SEFSC would not use those gears during their research.

In addition to examining known knowledge regarding animal behavior, with other species historically taken) to interaction, we also considered a overall abundance in the geographic determine whether a species may have number of activity-related factors (e.g., region, density relative to SEFSC survey a similar vulnerability to certain types gear size, set duration, etc.) and species- effort, feeding ecology, propensity to of gear as historically taken species. For specific factors (e.g., species-specific travel in groups commonly associated example, despite known take in

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commercial trap/pot fisheries, here we Although large whale species could affiliated research trawls in the Gulf of rule out the potential for traps/pots to become entangled in longline gear, the Mexico have taken pelagic marine take marine mammals incidental to probability of interaction with SEFSC mammals. For example, a mid-water SEFSC research for a number of reasons. longline gear is extremely low research trawl conducted to monitor the Commercial fisheries often involve considering a far lower level of survey effects of the Deepwater Horizon oil hundreds of unattended traps that are effort relative to that of commercial spill in the Gulf of Mexico took 3 located on a semi-permanent basis, fisheries, much shorter set durations, pantropical spotted dolphins in one usually with long, loose float lines, in shorter line lengths, and monitoring and trawl in 2012. Additionally, an Atlantic shallow waters close to shore. In mitigation measures implemented by spotted dolphin was taken in non- contrast, SEFSC research gear is fished the SEFSC (e.g., the move-on rule). SEFSC research bottom trawl in 2014. in deeper waters, and typically only one Although data on commercial fishing Known takes in commercial trawl pot is fished at a time and monitored efforts comparable to the known SEFSC fisheries in the ARA and GOMRA continuously for short soak times (e.g., research protocols (net size, tow include a range of marine mammal one hour). These differences in fishing duration and speed, and total number of species (Table 8). NMFS examined the practices, along with the fact no marine tows) are not publically available, based similarities between species known to mammals have been taken in a SEFSC on the amount of fish caught by be taken in commercial and non-SEFSC trap/pot, negate the potential for take to commercial fisheries versus SEFSC research trawls with those species that a level NMFS does not believe warrants fisheries research, the ‘‘footprint’’ of overlap in time and space with SEFSC authorization of take, and there is no research effort compared to commercial research trawls in the open ocean. historical documentation of take from fisheries is very small (see Section 9 in Because some species exhibit similar this gear incidental to SEFSC surveys. the SEFSC’s application). As such, the behavior, distribution, abundance, and Therefore, we do not expect take SEFSC has not requested, nor is NMFS vulnerability to research trawl gear to incidental to SEFSC research activities proposing, to authorize take of large these species, NMFS proposes to using trap/pot gear. whales (i.e., mysticetes) incidental to authorize take of eight species of pelagic It is well documented that multiple longline research. There are situations cetaceans and two pinniped species in marine mammal species are taken in with hook-and-line (e.g., longline) the ARA and nine species of cetaceans commercial longline fisheries (Table 8). fisheries research gear when a caught in the GOMRA (Table 9). In addition, We used this information to help make animal cannot be identified to species NMFS provides allowance of one take of an informed decision on the probability with certainty. This might occur when an unidentified species in the ARA, of specific cetacean and large whale a hooked or entangled dolphin frees GOMRA, and CRA over the life of these interactions with longline gear and itself before being identified or when proposed regulations to account for any other hook-and-line gear while taking concerns over crew safety, weather, or animal that cannot be identified to a into account many other factors sea state conditions necessitate quickly species level. Takes would occur affecting the vulnerability of a species to releasing the animal before incidental to trawl and hook and line be taken in SEFSC research surveys identification is possible. The top (including longline) research in the (e.g., relative survey effort, survey priority for live animals is to release ARA and GOMRA. However, because location, similarity in gear type, animal them as quickly and safely as possible. the SEFSC does not use trawl gear in the behavior, prior history of SEFSC The SEFSC ship’s crew and research CRA, take is proposed incidental to interactions with longline gear etc.). personnel make concerted efforts to hook and line gear in the Caribbean (see First we examined species known to be identify animals incidentally caught in Tables 6.4- 6.6 in SEFSC’s application taken in longline fisheries but for which research gear whenever crew and vessel for more detail). We are proposing to the SEFSC has not requested take. For safety are not jeopardized. authorize the amount of take requested example, the SEFSC is not requesting With respect to trawling, both by the SEFSC’s for these stocks listed in take of large whales in longline gear. commercial fisheries and non-SEFSC Table 9.

TABLE 9—PROPOSED TOTAL TAKE, BY SPECIES AND STOCK, OF PELAGIC MARINE MAMMALS IN THE ARA AND GOMRA INCIDENTAL TO TRAWL AND HOOK AND LINE RESEARCH AND, IN THE CRA, INCIDENTAL TO HOOK AND LINE RE- SEARCH ACTIVITIES OVER THE 5 YEAR REGULATIONS

Total Species Stock Proposed M&SI Take

Risso’s dolphin ...... Western North Atlantic. N. Gulf of Mexico. Melon headed whale ...... N. Gulf of Mexico ...... 3 Short-finned pilot whale ...... Western North Atlantic ...... 1 N. Gulf of Mexico ...... 1 Long-finned pilot whale ...... Western North Atlantic ...... 1 Short-beaked common dolphin ...... Western North Atlantic ...... 4 Atlantic spotted dolphin ...... Western North Atlantic ...... 4 N. Gulf of Mexico ...... 4 Pantropical spotted dolphin ...... Western North Atlantic ...... 1 N. Gulf of Mexico ...... 4 Striped dolphin ...... Western North Atlantic ...... 3 N. Gulf of Mexico ...... 3 Spinner dolphin ...... N. Gulf of Mexico ...... 3 Rough-toothed dolphin ...... N. Gulf of Mexico ...... 1 Bottlenose dolphin ...... Western North Atlantic Oceanic ...... 4 N. Gulf of Mexico Oceanic ...... 4 N. Gulf of Mexico Continental Shelf ...... 4

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TABLE 9—PROPOSED TOTAL TAKE, BY SPECIES AND STOCK, OF PELAGIC MARINE MAMMALS IN THE ARA AND GOMRA INCIDENTAL TO TRAWL AND HOOK AND LINE RESEARCH AND, IN THE CRA, INCIDENTAL TO HOOK AND LINE RE- SEARCH ACTIVITIES OVER THE 5 YEAR REGULATIONS—Continued

Total Species Stock Proposed M&SI Take

Puerto Rico/USVI ...... 1 Harbor porpoise ...... Gulf of Maine/Bay of Fundy ...... 1 Undetermined delphinid ...... Western North Atlantic ...... 1 N. Gulf of Mexico ...... 1 Harbor seal ...... Western North Atlantic ...... 1 Gray seal ...... Western North Atlantic ...... 1

Estimated Take Due to Acoustic finalizing. In the interim, we apply the and the other is referring to the temporal Harassment traditional thresholds. component. A more accurate term for As described previously (‘‘Potential Level B Harassment for non-explosive the impulsive threshold is the Effects of the Specified Activity on sources—Though significantly driven by intermittent threshold. This distinction Marine Mammals’’), we believe that received level, the onset of behavioral is important because, when assessing SEFSC use of active acoustic sources disturbance from anthropogenic noise the potential for hearing loss (PTS or has, at most, the potential to cause Level exposure is also informed to varying TTS) or non-auditory injury (e.g., lung B harassment of marine mammals. In degrees by other factors related to the injury), the spectral characteristics of order to attempt to quantify the source (e.g., frequency, predictability, source (impulsive vs. non-impulsive) is potential for Level B harassment to duty cycle), the environment (e.g., critical to assessing the potential for occur, NMFS (including the SEFSC and bathymetry), and the receiving animals such impacts. However, for behavior, acoustics experts from other parts of (hearing, motivation, experience, the temporal component is more NMFS) developed an analytical demography, behavioral context) and appropriate to consider. Gomez et al. framework considering characteristics of can be difficult to predict (Southall et (2016) conducted a systematic literature the active acoustic systems described al., 2007, Ellison et al., 2011). Based on review (370 papers) and analysis (79 previously under Description of Active what the best available science indicates studies, 195 data cases) to better assess Acoustic Sound Sources, their expected and the practical need to use a threshold probability and severity of behavioral patterns of use, and characteristics of based on a factor that is both predictable responses in marine mammals exposed the marine mammal species that may and measurable for most activities, to anthropogenic sound. They found a interact with them. This quantitative NMFS uses a generalized acoustic significant relationship between source assessment benefits from its simplicity threshold based on received level to type and behavioral response when and consistency with current NMFS estimate the onset of behavioral sources were split into broad categories acoustic guidance regarding Level B harassment. NMFS predicts that marine that reflected whether sources were harassment but we caution that, based mammals are likely to be behaviorally continuous, sonar, or seismic (the latter on a number of deliberately harassed in a manner we consider Level two of which are intermittent sources). precautionary assumptions, the B harassment when exposed to Moreover, while Gomez et al (2017) resulting take estimates may be seen as underwater anthropogenic noise above acknowledges acoustically sensitive an overestimate of the potential for received levels of 120 dB re 1 mPa (rms) species (beaked whales and harbor behavioral harassment to occur as a for continuous (e.g. vibratory pile- porpoise), the authors do not result of the operation of these systems. driving, drilling) and above 160 dB re 1 recommend an alternative method for Additional details on the approach used mPa (rms) for non-explosive impulsive categorizing sound sources for these and the assumptions made that result in (e.g., seismic airguns) or intermittent species when assessing behavioral these estimates are described below. (e.g., scientific sonar) sources. Neither impacts from noise exposure. threshold is used for military sonar due To apply the continuous 120 dB Acoustic Thresholds to the unique source characteristics. threshold to all species based on data Using the best available science, The Marine Mammal Commission from known acoustically sensitive NMFS has developed acoustic (Commission) has previously suggested species (one species of which is the thresholds that identify the received NMFS apply the 120 dB continuous harbor porpoise which is likely to be level of underwater sound above which threshold to scientific sonar such as the rarely encountered in the ARA and do exposed marine mammals would be ones proposed by the SEFSC. NMFS has not inhabit the GOMRA or CRA) is not reasonably expected to be behaviorally responded to this comment in multiple warranted as it would be unnecessarily harassed (equated to Level B Federal Register notices of issuance for conservative for non-sensitive species. harassment) or to incur PTS of some other NMFS science centers. However, Qualitatively considered in our effects degree (Level A harassment). We note we provide more clarification here on analysis below is that beaked whales NMFS has begun efforts to update its why the 160 dB threshold is appropriate and harbor porpoise are more behavioral thresholds, considering all when estimating take from acoustic acoustically sensitive than other available data, and is formulating a sources used during SEFSC research cetacean species, and thus are more strategy for updating those thresholds activities. NMFS historically has likely to demonstrate overt changes in for all types of sound sources referred to the 160 dB threshold as the behavior when exposed to such sources. considered in incidental take impulsive threshold, and the 120 dB Further, in absence of very sophisticated authorizations. It is NMFS intention to threshold as the continuous threshold, acoustic modeling, our propagation conduct both internal and external which in and of itself is conflicting as rates are also conservative. Therefore, review of any new thresholds prior to one is referring to pulse characteristics the distance to the 160 dB threshold is

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likely much closer to the source than other NMFS Science Centers applying behavior across different marine calculated. In summary, the SEFSC’s for regulations. It is relatively mammal species were made to segregate proposed activity includes the use of straightforward and has a number of key those that predominately remain in the intermittent sources (scientific sonar). simple and conservative assumptions. upper 200 m of the water column versus Therefore, the 160 dB re 1 mPa (rms) NMFS’ current acoustic guidance those that regularly dive deeper during threshold is applicable when requires in most cases that we assume foraging and transit. Methods for quantitatively estimating take by Level B harassment occurs when a estimating each of these calculations are behavioral harassment incidental to marine mammal receives an acoustic described in greater detail in the SEFSC scientific sonar for all marine signal at or above a simple step-function following sections, along with the mammal species. threshold. For use of these active simplifying assumptions made, and Level A harassment for non-explosive acoustic systems used during SEFSC followed by the take estimates. sources—NMFS’ Technical Guidance research, NMFS uses the threshold is for Assessing the Effects of 160 dB re 1 mPa (rms) as the best Sound source characteristics—An Anthropogenic Sound on Marine available science indicates the temporal initial characterization of the general Mammal Hearing (Technical Guidance, characteristics of a source are most source parameters for the primary active 2018) identifies dual criteria to assess influential in determining behavioral acoustic sources operated by the SEFSC auditory injury (Level A harassment) to impacts (Gomez et al., 2016), and it is was conducted, enabling a full five different marine mammal groups NMFS long standing practice to apply assessment of all sound sources used by (based on hearing sensitivity) as a result the 160 dB threshold to intermittent the SEFSC and delineation of Category of exposure to noise from two different sources. Estimating the number of 1 and Category 2 sources, the latter of types of sources (impulsive or non- exposures at the specified received level which were carried forward for analysis impulsive). However, as described in requires several determinations, each of here. This auditing of the active acoustic greater detail in the Potential Effects which is described sequentially below: sources also enabled a determination of section, given the highly direction, (1) A detailed characterization of the the predominant sources that, when e.g.,narrow beam widths, NMFS does acoustic characteristics of the effective operated, would have sound footprints not anticipate animals would be sound source or sources in operation; exceeding those from any other exposed to noise levels resulting in PTS. (2) The operational areas exposed to simultaneously used sources. These Therefore, the Level A criteria do not levels at or above those associated with sources were effectively those used apply here and are not discussed Level B harassment when these sources directly in acoustic propagation further; NMFS is proposing take by are in operation; modeling to estimate the zones within Level B harassment only. (3) A method for quantifying the which the 160 dB rms received level The operating frequencies of active resulting sound fields around these would occur. acoustic systems used by the SEFSC sources; and sources range from 18–333 kHz (see (4) An estimate of the average density Many of these sources can be operated Table 2). These frequencies are within for marine mammal species in each area in different modes and with different the very upper hearing range limits of of operation. output parameters. In modeling their baleen whales (7 Hz to 35 kHz). The Quantifying the spatial and temporal potential impact areas, those features Simrad EK60 may operate at frequency dimension of the sound exposure among those given previously in Table of 18 kHz which is the only frequency footprint (or ‘‘swath width’’) of the 2 (e.g., lowest operating frequency) that that might be detectable by baleen active acoustic devices in operation on would lead to the most precautionary whales. However, the beam pattern is moving vessels and their relationship to estimate of maximum received level extremely narrow (11 degrees) at that the average density of marine mammals ranges (i.e., largest ensonified area) were frequency. The Simrad ME70 enables a quantitative estimate of the used. The effective beam patterns took echosounder, EQ50, and Teledyne RD number of individuals for which sound into account the normal modes in which ADCP operate at 50–200 kHz which are levels exceed the relevant threshold for these sources are typically operated. all outside of baleen whale hearing each area. The number of potential While these signals are brief and capabilities. Therefore, we would not incidents of Level B harassment is intermittent, a conservative assumption expect any exposures to these signals to ultimately estimated as the product of was taken in ignoring the temporal result in behavioral harassment. The the volume of water ensonified at 160 pattern of transmitted pulses in Simrad EK60 lowest operating dB rms or higher and the volumetric calculating Level B harassment events. frequency (18 kHz) is within baleen density of animals determined from Operating characteristics of each of the whale hearing capabilities. simple assumptions about their vertical predominant sound sources were used The assessment paradigm for active stratification in the water column. in the calculation of effective line- acoustic sources used in SEFSC Specifically, reasonable assumptions kilometers and area of exposure for each fisheries research mirrors approaches by based on what is known about diving source in each survey (Table 10).

TABLE 10—EFFECTIVE EXPOSURE AREAS FOR PREDOMINANT ACOUSTIC SOURCES ACROSS TWO DEPTH STRATA

Effective exposure area: Effective exposure area: Sea surface to depth at Active acoustic system Sea surface to 200 m depth which 160-dB threshold (km2) is reached (km2)

Simrad EK60 narrow beam echosounder ...... 0.0142 0.1411 Simrad ME70 multibeam echosounder ...... 0.0201 0.0201 Simrad FS70 trawl sonar ...... 0.008 0.008 Simrad SX90 narrow beam sonar 1 ...... 0.0654 0.1634 Teledyne RD Instruments ADCP, Ocean Surveyor ...... 0.0086 0.0187

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TABLE 10—EFFECTIVE EXPOSURE AREAS FOR PREDOMINANT ACOUSTIC SOURCES ACROSS TWO DEPTH STRATA— Continued

Effective exposure area: Effective exposure area: Sea surface to depth at Active acoustic system Sea surface to 200 m depth which 160-dB threshold (km2) is reached (km2)

Simrad ITI trawl monitoring system ...... 0.0032 0.0032 1 Exposure area varies greatly depending on the tilt angle setting of the SX90. To approximate the varied usage this system might receive, the exposure area for each depth strata was averaged by assuming equal usage at tilt angles of 5, 20, 45, and 80 degrees.

Calculating effective line-kilometers— most of these sound sources. For evidence that this is in fact not the case, As described below, based on the absorption coefficients, the most and marine species are highly operating parameters for each source commonly used formulas given by heterogeneous in terms of their spatial type, an estimated volume of water Francios and Garrison (1982) were used. distribution, largely as a result of ensonified at or above the 160 dB rms The lowest frequency was used for species-typical utilization of threshold was calculated. In all cases systems that are operated over a range heterogeneous ecosystem features. Some where multiple sources are operated of frequencies. The vertical extent of more sophisticated modeling efforts simultaneously, the one with the largest this area is calculated for two depth have attempted to include species- estimated acoustic footprint was strata (surface to 200 m, and for deep typical behavioral patterns and diving considered to be the effective source. water operations > 200 m, surface to parameters in movement models that Two depth zones were defined for each range at which the on-axis received more adequately assess the spatial and research area: A Continental Shelf level reaches 160 dB RMS). This was temporal aspects of distribution and Region defined by having bathymetry 0– applied differentially based on the thus exposure to sound (e.g., Navy, 200 m and an Offshore Region with typical vertical stratification of marine 2013). While simulated movement bathymetry >200 m. Effective line mammals (see Tables 6–9 and 6–10 in models were not used to mimic distance and volume insonified was SEFSC’s application). individual diving or aggregation calculated for each depth stratum (0– For each of the three predominant parameters in the determination of 200 m and > 200 m), where appropriate sound sources, the volume of water animal density in this estimation, the (i.e. in the Continental Shelf region, ensonified is estimated as the cross- vertical stratification of marine where depth is <200 m, only the sectional area (in square kilometers) of mammals based on known or reasonably exposure area for the 0–200 m depth sound at or above 160 dB rms assumed diving behavior was integrated stratum was calculated). In some cases, multiplied by the total distance traveled into the density estimates used. this resulted in different sources being by the ship (see Table 6a and 6b in The marine mammal abundance predominant in each depth stratum for SEFSC’s application). Where different estimates used for the ARA and GOM all line km when multiple sources were sources operating simultaneously would were obtained from Stock Assessment in operation. This was accounted for in be predominant in each different depth Reports for the Atlantic and the Gulf of estimating overall exposures for species strata (e.g., ME70 and EK60 operating Mexico ecosystem areas (Waring et al. that utilize both depth strata (deep simultaneously may be predominant in 2012, 2013, 2014, and 2015), and the divers). For each ecosystem area, the the shallow stratum and deep stratum, best scientific information available to total number of line km that would be respectively), the resulting cross- SEFSC staff. We note abundances for surveyed was determined, as was the sectional area calculated took this into cetacean stocks in western North relative percentage of surveyed linear account. Specifically, for shallow-diving Atlantic U.S. waters are the combined km associated with each source. The species this cross-sectional area was estimates from surveys conducted by total line km for each vessel, the determined for whichever was the NMFS Northeast Fisheries Science effective portions associated with each predominant in the shallow stratum, Center (NEFSC) from central Virginia to of the dominant sound types, and the whereas for deeper-diving species, this the lower Bay of Fundy and surveys effective total km for operation for each area was calculated from the combined conducted by the SEFSC from central sound type is given in Tables 6–8a and effects of the predominant source in the Virginia to central Florida. The SEFSC 6–8b in SEFSC’s application. In shallow stratum and the (sometimes primary area of research is south of summary, line transect kms range from different) source predominating in the central Virginia. Therefore, densities are 1149 to 3352 in the ARA and 16,797 to deep stratum. This creates an effective based on abundance estimates from 30,146 km with sources operating 20– total volume characterizing the area central Virginia to central Florida and 100 percent of the time depending on ensonified when each predominant are reported in the stock assessment the source. source is operated and accounts for the report for each stock. For example, the Calculating volume of water fact that deeper-diving species may fin whale abundance estimate for the ensonified—The cross-sectional area of encounter a complex sound field in stock is 1,618. However, most of those water ensonified to a 160 dB rms different portions of the water column. animals occur in the northeast with only received level was calculated using a Marine mammal densities—One of about 23 individuals in the southeast simple spherical spreading model of the primary limitations to traditional where SEFSC would occur. Therefore, sound propagation loss (20 log R) such estimates of behavioral harassment from an abundance estimate of 23 was used that there would be 60 dB of attenuation acoustic exposure is the assumption that to estimate density. Density estimates in over 1,000 m. The spherical spreading animals are uniformly distributed in areas where a species is known to occur, model accounted for the frequency time and space across very large but where published density data is dependent absorption coefficient and geographical areas, such as those being absent were calculated based on values the highly directional beam pattern of considered here. There is ample published for the species in adjacent

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regions by analogy and SEFSC expertise. throughout the assessed area, and at depths shallower than 200 m. Their For example, in the CRA there are seasonal movement patterns are not volumetric density and thus exposure to records of marine mammal species taken into account. sound is therefore limited by this depth occurrence (e.g., Mignucci-Giannoni In addition, and to account for at least boundary. In contrast, species in the 1998, Roden and Mullin 2000), some coarse differences in marine deeper-diving stratum were assumed to However, area specific abundance mammal diving behavior and the effect regularly dive deeper than 200 m and estimates are unavailable so the density this has on their likely exposure to these spend significant time at these greater estimates for the GOMRA were used as kinds of often highly directional sound depths. Their volumetric density and sources, a volumetric density of marine proxies where appropriate to estimate thus potential exposure to sound at or acoustic take in the CRA. There are a mammals of each species was above the 160 dB rms threshold is number of caveats associated with these determined. This value is estimated as extended from the surface to the depth estimates: the abundance averaged over the two- (1) They are often calculated using dimensional geographic area of the at which this received level condition visual sighting data collected during one surveys and the vertical range of typical occurs (i.e., corresponding to the 0 to season rather than throughout the year. habitat for the population. Habitat greater than 200 m depth stratum). The The time of year when data were ranges were categorized in two volumetric densities are estimates of the collected and from which densities were generalized depth strata (0–200 m and 0 three-dimensional distribution of estimated may not always overlap with to greater than 200 m) based on gross animals in their typical depth strata. For the timing of SEFSC fisheries surveys differences between known generally shallow-diving species the volumetric (detailed previously in ‘‘Detailed surface-associated and typically deep- density is the area density divided by Description of Activities’’). diving marine mammals (e.g., Reynolds 0.2 km (i.e., 200 m). For deeper diving (2) The densities used for purposes of and Rommel, 1999; Perrin et al., 2009). species, the volumetric density is the estimating acoustic exposures do not Animals in the shallow-diving stratum area density divided by a nominal value take into account the patchy were assumed, on the basis of empirical of 0.5 km (i.e., 500 m). The two- distributions of marine mammals in an measurements of diving with dimensional and resulting three- ecosystem, at least on the moderate to monitoring tags and reasonable dimensional (volumetric) densities for fine scales over which they are known assumptions of behavior based on other each species in each ecosystem area are to occur. Instead, animals are indicators, to spend a large majority of provided in Table 11. considered evenly distributed their lives (i.e., greater than 75 percent) TABLE 11—ABUNDANCES AND VOLUMETRIC DENSITIES CALCULATED FOR EACH SPECIES IN SEFSC RESEARCH AREAS USED IN TAKE ESTIMATION

Typical dive Continental Offshore depth strata Continental Offshore shelf area area shelf area 2 area 3 Species 1 Abundance volumetric volumetric 0–200 >200 density density density density (#/km2) (#/km2) m m (#/km3) (#/km3)

Atlantic Research Area 4

Fin whale ...... 23 ...... X ...... 0.00005 ...... 0.00025 Sperm whale ...... 695 ...... X ...... 0.00148 ...... 0.00296 Pygmy/dwarf sperm whales 5 ...... 2,002 ...... X ...... 0.00426 ...... 0.00852 False killer whale ...... 442 ...... X ...... 0.00094 ...... 0.00470 Beaked whales 5 ...... 3,163 ...... X ...... 0.00673 ...... 0.01346 Risso’s dolphin ...... 3,053 ...... X ...... 0.00650 ...... 0.03248 Short-finned pilot whale ...... 16,964 ...... X ...... 0.03610 ...... 0.07219 Short-beaked common dolphin ...... 2,993 ...... X ...... 0.00637 ...... 0.03184 Atlantic spotted dolphin ...... 17,917 ...... X ...... 0.39209 0.03812 1.96043 0.19062 Pantropical spotted dolphin ...... 3,333 ...... X ...... 0.00709 ...... 0.03546 Striped dolphin ...... 7,925 ...... X ...... 0.01686 ...... 0.08431 Rough-toothed dolphin ...... 271 ...... X ...... 0.00058 ...... 0.00288 Bottlenose dolphin ...... 50,766 (offshore), 31,212 (cont. shelf) ...... X ...... 0.25006 0.10802 1.25028 0.54010

Gulf of Mexico Research Area

Bryde’s whale ...... 33 ...... X ...... 0.00011 ...... 0.00054 Sperm whale ...... 763 ...... X ...... 0.00438 ...... 0.00876 Pygmy/dwarf sperm whales 5 ...... 184 ...... X ...... 0.01857 ...... 0.00101 Pygmy killer whale ...... 152 ...... X ...... 0.00080 ...... 0.00400 False killer whale ...... Unk ...... X ...... 0.00086 ...... 0.00432 Beaked whales 56 ...... 149 ...... X ...... 0.00925 ...... 0.00081 Melon-headed whale ...... 2,235 ...... X ...... 0.00487 ...... 0.02434 Risso’s dolphin ...... 2,442 ...... X ...... 0.00523 ...... 0.02613 Short-finned pilot whale ...... 2,415 ...... X ...... 0.00463 ...... 0.00925 Atlantic spotted dolphin 7 ...... 37,611 ...... X ...... 0.09971 unk 0.49854 Unk Pantropical spotted dolphin ...... 50,880 ...... X ...... 0.09412 ...... 0.47062 Striped dolphin ...... 1,849 ...... X ...... 0.00735 ...... 0.03677 Rough-toothed dolphin ...... 624 ...... X ...... 0.00401 0.00664 0.02006 0.03322 Clymene dolphin 8 ...... 129 ...... X ...... 0.00907 ...... 0.04537 Spinner dolphin ...... 11,441 ...... X ...... 0.01888 ...... 0.09439 Bottlenose dolphin ...... 5,806 (oceanic) 51,192 (cont. shelf) ...... X ...... 0.29462 0.02347 1.47311 0.11735

Caribbean Research Area 9

Sperm whale ...... 763 ...... X na 0.00438 na 0.008761 Pygmy/dwarf sperm whales 56 ...... 186 ...... X na 0.01857 na 0.00101 Killer whale ...... 184 ...... X ...... na 0.00000 na 0

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TABLE 11—ABUNDANCES AND VOLUMETRIC DENSITIES CALCULATED FOR EACH SPECIES IN SEFSC RESEARCH AREAS USED IN TAKE ESTIMATION—Continued

Continental Offshore Typical dive Offshore depth strata Continental shelf area area shelf area 2 area 3 Species 1 Abundance volumetric volumetric 0–200 >200 density density density density (#/km2) (#/km2) m m (#/km3) (#/km3)

Pygmy killer whale ...... 152 ...... X ...... na 0.00080 na 0.003998 False killer whale ...... Unk ...... X ...... na 0.00086 na 0.004324 Beaked whales 56 ...... 149 ...... X na 0.00925 na 0.00081 Melon-headed whale ...... 2,235 ...... X ...... na 0.00487 na 0.024343 Risso’s dolphin ...... 2,442 ...... X ...... na 0.00523 na 0.026132 Short-finned pilot whale ...... 2,415 ...... X na 0.00463 na 0.009255 Pantropical spotted dolphin ...... 50,880 ...... X ...... na 0.09412 na 0.470615 Striped dolphin ...... 1,849 ...... X ...... na 0.00735 na 0.036771 Fraser’s dolphin ...... X ...... na 0.00000 na 0 Rough-toothed dolphin ...... 624 ...... X ...... na 0.00664 na 0.03322 Clymene dolphin ...... 129 ...... X ...... na 0.00907 na 0.045365 Spinner dolphin ...... 11,441 ...... X ...... na 0.01888 na 0.094389 Bottlenose dolphin ...... 5,806 (oceanic), 51,192 (cont. shelf) ...... X ...... na 0.02347 na 0.117349 1 Those species known to occur in the ARA and GOMRA with unknown volumetric densities have been omitted from this table. Those omitted include: for the ARA—North Atlantic right whale, minke whale, humpback whale, melon-headed whale, pygmy killer whale, long-finned pilot whale, Fraser’s dolphin, spinner dolphin, Clymene dolphin, harbor porpoise, gray seal, and harbor seal; for the GOMRA—killer whale and Fraser’s dolphin. This does not mean they were all omitted for take as proxy species provided in this table were used to estimate take, where applicable. 2 Continental shelf area means 0–200 m bottom depth 3 Offshore area means 200 m bottom depth. 4 Abundances for cetacean stocks in western North Atlantic U.S. waters are the combined estimates from surveys conducted by the NEFSC from central Virginia to the lower Bay of Fundy and surveys conducted by the SEFSC from central Virginia to central Florida. The SEFSC primary area of research is south of central Vir- ginia. Therefore, acoustic take estimates are based on abundance estimates from central Virginia to central Florida and are reported in the stock assessment report for each stock. However, these acoustic takes are compared to the abundance for the entire stock. 5 Density estimates are based on the estimates of dwarf and pygmy sperm whale SAR abundances and the combined abundance estimates of all beaked whales (Mesoplodon spp. + Cuvier’s beaked whale). These groups are cryptic and difficult to routinely identify to species in the field. 6 Data from acoustic moorings in the Gulf of Mexico suggest that both beaked whales and dwarf/pygmy sperm whales are much more abundant than visual surveys suggest. Therefore, acoustic take estimates for these groups were based on abundance estimates extrapolated from acoustic mooring data (DWH–NRDAT 2016). 7 The most reasonable estimate Atlantic spotted dolphin abundance is in the Gulf of Mexico is based on ship surveys of continental shelf waters conducted from 2000–2001. In the Gulf of Mexico the continental shelf is the Atlantic spotted dolphin’s primary habitat. Ship surveys have not been conducted in shelf waters since 2001. 8 Three previous abundance estimates for the Clymene dolphin in the Gulf of Mexico were based surveys conducted over several years and estimates ranged from 5,000 to over 17,000 dolphins. The current estimate is based on one survey in 2009 from the 200 m isobaths to the EEZ and is probably negatively biased. 9 Estimates for the CRA are based on proxy values taken from the GOMRA where available and appropriate. Species omitted due to lack of data were humpback whale, minke whale, Bryde’s whale, and Atlantic spotted dolphin.

Using area of ensonification and the product of the volume of water both depth stata, individual take volumetric density to estimate ensonified at 160 dB rms or higher for estimates were summed. To illustrate, exposures—Estimates of potential the predominant sound source for each we use the ME70 and the pantropical incidents of Level B harassment (i.e., portion of the total line-kilometers for spotted dolphin, which are found only potential exposure to levels of sound at which it is used and the volumetric in the 0–200 m depth stratum, as an or exceeding the 160 dB rms threshold) density of animals for each species. example: are then calculated by using (1) the However, in order to estimate the combined results from output additional volume of ensonified water (1) ME70 ensonified volume (0–200 m) = 2 characteristics of each source and in the deep stratum, the SEFSC first 0.0201 km identification of the predominant subtracted the cross-sectional ensonified (2) Total Linear kms = 1,794 km (no sources in terms of acoustic output; (2) area of the shallow stratum (which is pantropical spotted dolphins are found on their relative annual usage patterns for already accounted for) from that of the the shelf so those trackline distances are not each operational area; (3) a source- deep stratum. Source- and stratum- included here) specific determination made of the area specific exposure estimates are the (3) Pantropical spotted dolphin density (0– 200 m) = 0.47062 dolphins/km3 of water associated with received product of these ensonified volumes ≥ sounds at either the extent of a depth and the species-specific volumetric (4) Estimated exposures to sound 160 dB boundary or the 160 dB rms received densities (Table 12). The general take rms = 0.47062 pantropical spotted dolphin/ km3 * (0.0201 km2 * 1,794 km) = 16.9 sound level; and (4) determination of a estimate equation for each source in (rounded up) = 17 estimated pantropical volumetric density of marine mammal each depth statrum is density * spotted dolphin exposures to SPLs ≥ 160 dB species in each area. Estimates of Level (ensonified volume * linear kms). If rms resulting from use of the ME70. B harassment by acoustic sources are there are multiple sources of take in

TABLE 12—ESTIMATED SOURCE-, STRATUM-, AND SPECIES-SPECIFIC ANNUAL ESTIMATES OF LEVEL B HARASSMENT

Estimated Level B Harassment (#s of animals) in Estimated Level B Harassment Total Species 0–200 m dive depth stratum in >200 m dive depth stratum calculated EK60 ME70 EQ50 EK60 EQ50 take

Atlantic Continental Shelf

Bottlenose dolphin...... 67.00 21.43 21.43 0.00 0.00 110

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TABLE 12—ESTIMATED SOURCE-, STRATUM-, AND SPECIES-SPECIFIC ANNUAL ESTIMATES OF LEVEL B HARASSMENT— Continued

Estimated Level B Harassment (#s of animals) in Estimated Level B Harassment Total Species 0–200 m dive depth stratum in >200 m dive depth stratum calculated EK60 ME70 EQ50 EK60 EQ50 take

Atlantic Offshore

Fin whale ...... 0.02 0.00 0.00 0.00 0.00 1 Sperm whale ...... 0.18 0.02 0.01 1.75 0.00 2 Pygmy/dwarf sperm whales ...... 0.52 0.06 0.02 5.03 0.00 6 False killer whale ...... 0.29 0.03 0.01 0.00 0.00 1 Beaked whales ...... 0.83 0.09 0.03 7.95 0.00 9 Risso’s dolphin ...... 2.00 0.21 0.08 0.00 0.00 3 Short-finned pilot whale ...... 4.43 0.48 0.17 42.65 0.00 48 Short-beaked common dolphin ...... 1.96 0.21 0.07 0.00 0.00 3 Atlantic spotted dolphin ...... 11.71 1.26 0.45 0.00 0.00 14 Pantropical spotted dolphin ...... 2.18 0.23 0.08 0.00 0.00 3 Striped dolphin ...... 5.18 0.56 0.20 0.00 0.00 6 Rough-toothed dolphin ...... 0.18 0.02 0.01 0.00 0.00 1 Bottlenose dolphin ...... 33.18 3.57 1.27 0.00 0.00 39

Gulf of Mexico Continental Shelf

Atlantic spotted dolphin ...... 161.80 12.95 22.75 0.00 0.00 198 Bottlenose dolphin ...... 269.16 21.55 37.84 0.00 0.88 329

Gulf of Mexico Offshore

Bryde’s whale ...... 0.23 0.02 0.01 0.00 0.00 1 Sperm whale...... 1.58 00.15 0.06 15.04 0.06 17 Pygmy/dwarf sperm whales ...... 0.38 0.04 0.01 3.66 0.01 5 Pygmy killer whale ...... 0.79 0.07 0.03 0.00 0.00 1 False killer whale ...... 1.63 0.15 0.06 0.00 0.00 2 Beaked whales ...... 0.31 0.03 0.01 2.93 0.01 4 Melon-headed whale ...... 11.55 1.09 0.41 0.00 0.00 13 Risso’s dolphin ...... 15.78 1.49 0.55 0.00 0.00 18 Short-finned pilot whale ...... 4.99 0.47 0.18 0.00 0.00 4 Pantropical spotted dolphin ...... 179.45 16.97 6.31 0.00 0.00 203 Striped dolphin ...... 14.02 1.33 0.49 0.00 0.00 16 Rough-toothed dolphin ...... 3.23 0.30 0.11 0.00 0.00 4 Clymene dolphin ...... 0.67 0.06 0.02 0.00 0.00 1 Spinner dolphin ...... 59.13 5.59 2.08 0.00 0.00 67 Bottlenose dolphin ...... 44.75 4.23 1.57 0.00 0.00 51

Caribbean Offshore

Sperm whale ...... 0.18 0.01 0.00 1.66 0.00 2 Pygmy/dwarf sperm whales ...... 0.38 0.04 0.01 3.66 0.01 5 Pygmy killer whale ...... 0.09 0.00 0.00 0.00 0.00 1 False killer whale ...... 0.19 0.00 0.00 0.00 0.00 1 Beaked whales ...... 0.31 0.03 0.01 2.93 0.01 4 Melon-headed whale ...... 1.34 0.03 0.01 0.00 0.00 2 Risso’s dolphin ...... 1.83 0.04 0.02 0.00 0.00 2 Short-finned pilot whale ...... 0.58 0.01 0.01 0.00 0.00 1 Pantropical spotted dolphin ...... 20.80 0.50 0.23 0.00 0.00 22 Striped dolphin ...... 1.63 0.04 0.02 0.00 0.00 2 Rough-toothed dolphin ...... 1.47 0.04 0.02 0.00 0.00 1 Clymene dolphin ...... 0.08 0.05 0.02 0.00 0.00 1 Spinner dolphin ...... 6.85 0.16 0.07 0.00 0.00 8 Bottlenose dolphin ...... 5.19 0.12 0.06 0.00 0.00 6

In some cases, the calculated Level B gregarious or travel in group sizes larger requested take in the application to take estimates resulted in low numbers than the calculated take estimate. In reflect those groups sizes (see proposed of animals which are known to be those cases, we have adjusted the take column in Table 13).

TABLE 13—CALCULATED AND PROPOSED LEVEL B TAKE ESTIMATES

Common name MMPA stock Calculated Avg. group Proposed take size 1 take

Fin whale ...... Western North Atlantic ...... 1 2 4

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TABLE 13—CALCULATED AND PROPOSED LEVEL B TAKE ESTIMATES—Continued

Common name MMPA stock Calculated Avg. group Proposed take size 1 take

Blue whale ...... Western North Atlantic ...... N/A 2 4 Bryde’s whale ...... Northern Gulf of Mexico ...... 1 2 4 Sperm whale ...... North Atlantic ...... 2 2.1 4 Northern Gulf of Mexico ...... 17 2.6 17 Puerto Rico and U.S. Virgin Islands ...... 4 unk 4 Pygmy/dwarf sperm whale 1 ...... Western North Atlantic ...... 6 1.9 10 Northern Gulf of Mexico ...... 5 2 6 Northern Gulf of Mexico (CRA) ...... 5 2 6 Beaked whale 2 ...... Western North Atlantic ...... 9 2.3 9 Northern Gulf of Mexico (GOMRA) ...... 4 2 4 Northern Gulf of Mexico (CRA) ...... 4 2 4 Melon-headed whales ...... Northern Gulf of Mexico ...... 13 99.6 100 Risso’s dolphin ...... Western North Atlantic ...... 3 15.4 15 Northern Gulf of Mexico ...... 18 10.2 10 Puerto Rico and U.S. Virgin Island ...... 2 10.2 10 Short-finned pilot whales ...... Western North Atlantic ...... 48 16.6 48 Northern Gulf of Mexico ...... 6 24.9 25 Puerto Rico and U.S. Virgin Islands ...... 1 unk 20 Common dolphin ...... Western North Atlantic ...... 3 267.2 268 Atlantic spotted dolphin ...... Western North Atlantic ...... 14 37 37 Northern Gulf of Mexico ...... 198 22 198 Puerto Rico and U.S. Virgin Islands ...... unk unk 50 Pantropical spotted dolphin ...... Western North Atlantic ...... 4 77.5 78 Northern Gulf of Mexico ...... 203 71.3 203 Striped dolphin ...... Western North Atlantic ...... 6 74.6 75 Northern Gulf of Mexico ...... 16 46.1 46 Bottlenose dolphin ...... Western North Atlantic (offshore) ...... 39 11.8 39 Western North Atlantic (coastal/continental 110 10 110 shelf). Northern Gulf of Mexico (coastal) ...... 2 329 10 2 350 Northern Gulf of Mexico (continental shelf) ... 329 10 350 Northern Gulf of Mexico (oceanic) ...... 51 20.6 100 Puerto Rico and U.S. Virgin Islands ...... 6 unk 50 Rough-toothed dolphin ...... Western North Atlantic ...... 1 8 10 Northern Gulf of Mexico ...... 4 14.1 20 Clymene dolphin ...... Western North Atlantic ...... 20 110 100 Northern Gulf of Mexico ...... 1 89.5 100 Spinner dolphin ...... Western North Atlantic ...... unk unk 100 Northern Gulf of Mexico ...... 16 151.5 200 Puerto Rico and U.S. Virgin Islands ...... n/a unk 50 Pygmy killer whale ...... Northern Gulf of Mexico ...... 1 18.5 20 False killer whale ...... Western North Atlantic ...... 1 unk 20 Northern Gulf of Mexico ...... n/a 27.6 20 Harbor porpoise ...... Gulf of Maine/Bay of Fundy ...... n/a 3 8 16 1 Groups sizes based on Fulling et al., 2003; Garrison et al., 2011; Mullin et al., 2003; and Mullin et al., 2004. 2 We note the SEFSC’s application did not request take, by Level B harassment, of bottlenose dolphins belonging to coastal stocks; however, because surveys occur using scientific sonar in waters where coastal dolphins may occur, we are proposing to issue the same amount of Level B take as requested for the continental shelf stock. 3 The American Cetacean Society reports average group size of harbor porpoise range from 6 to 10 individuals. We propose an average group size of 8 for the ARA which is likely conservative given the low density of animals off North Carolina. Given the short and confined spatio-tem- poral scale of SEFSC surveys in North Carolina during winter months, we assume two groups per year could be encountered.

Proposed Mitigation information about the availability and (1) The manner in which, and the feasibility (economic and technological) degree to which, the successful In order to issue an incidental take of equipment, methods, and manner of implementation of the measure(s) is authorization under Section 101(a)(5)(A conducting such activity or other means expected to reduce impacts to marine or D) of the MMPA, NMFS must set of effecting the least practicable adverse mammals, marine mammal species or forth the permissible methods of taking impact upon the affected species or stocks, and their habitat. This considers pursuant to such activity, ‘‘and other stocks and their habitat (50 CFR the nature of the potential adverse means of effecting the least practicable 216.104(a)(11)). impact being mitigated (likelihood, impact on such species or stock and its scope, range). It further considers the habitat, paying particular attention to In evaluating how mitigation may or likelihood that the measure will be rookeries, mating grounds, and areas of may not be appropriate to ensure the effective if implemented (probability of similar significance, and on the least practicable adverse impact on accomplishing the mitigating result if availability of such species or stock for species or stocks and their habitat, as implemented as planned) the likelihood taking’’ for certain subsistence uses. well as subsistence uses where of effective implementation (probability NMFS regulations require applicants for applicable, we carefully consider two implemented as planned). and; (2) the incidental take authorizations to include primary factors: practicability of the measures for

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applicant implementation, which may over survey platforms used by the reporting requirements. The SEFSC consider such things as cost, impact on SEFSC—is the applicant to whom any would also provide consistent, timely operations, and, in the case of a military incidental take authorization issued support throughout the year to address readiness activity, personnel safety, under the authority of these proposed any questions or concerns researchers practicality of implementation, and regulations would be issued, we require may have regarding these measures. impact on the effectiveness of the that the SEFSC take all necessary SEFSC would also be required to military readiness activity. measures to coordinate and establish and maintain cooperating communicate in advance of each partner working group(s) to identify SEFSC Mitigation for Marine Mammals circumstances of a take should it occur and Their Habitat specific survey with OMAO, and other relevant parties, to ensure that all and any action necessary to avoid future The SEFSC has invested significant mitigation measures and monitoring take. Each working group shall consist time and effort in identifying requirements described herein, as well of at least one SEFSC representative technologies, practices, and equipment as the specific manner of knowledgeable of the mitigation, to minimize the impact of the proposed implementation and relevant event- monitoring and reporting requirements activities on marine mammal species contingent decision-making processes, contained within these regulations, one and stocks and their habitat. The are clearly understood and agreed-upon. or more research institution or SEFSC mitigation measures discussed here This may involve description of all representative(s) (preferably have been determined to be both required measures when submitting researcher(s) aboard vessel when take or effective and practicable and, in some cruise instructions to OMAO or when risk of take occurred), one or more staff cases, have already been implemented completing contracts with external from NMFS Southeast Regional Office by the SEFSC. In addition, the SEFSC is entities. The SEFSC will coordinate and Protected Resources Division, and one actively conducting research to conduct briefings at the outset of each or more staff from NMFS Office of determine if gear modifications are survey and as necessary between ship’s Protected Resources. At the onset of effective at reducing take from certain crew (CO/master or designee(s), as these regulations, SEFSC shall maintain types of gear; any potentially effective appropriate) and scientific party in the recently established SCDNR working and practicable gear modification order to explain responsibilities, group to identify actions necessary to mitigation measures will be discussed communication procedures, marine reduce the amount of take from SCDNR as research results are available as part mammal monitoring protocol, and trawling. Other working groups shall be of the adaptive management strategy operational procedures. SEFSC will also established if a partner takes more than included in this rule. As for other parts coordinate as necessary on a daily basis one marine mammal within 5 years to of this rule, all references to the SEFSC, during survey cruises with OMAO identify circumstances of marine unless otherwise noted, include personnel or other relevant personnel mammal take and necessary action to requirements for all partner institutions on non-NOAA platforms to ensure that avoid future take. Each working group identified in the SEFSC’s application. requirements, procedures, and decision- shall meet at least once annually. The Coordination and communication— SEFSC will maintain a centralized When SEFSC survey effort is conducted making processes are understood and properly implemented. The CS will be repository for all working group aboard NOAA-owned vessels, there are findings to facilitate sharing and both vessel officers and crew and a responsible for coordination with the Officer on Deck (OOD; or equivalent on coordination. scientific party. Vessel officers and crew While at sea, best professional non-NOAA platforms) to ensure that are not composed of SEFSC staff, but are judgement is used to determine if a requirements, procedures, and decision- employees of NOAA’s Office of Marine marine mammal is at risk of and Aviation Operations (OMAO), making processes are understood and entanglement/hooking and if and what which is responsible for the properly implemented. type of actions should be taken to management and operation of NOAA For fisheries research being decrease risk of interaction. To improve fleet ships and aircraft and is composed conducted by partner entities, it remains judgement consistency across the of uniformed officers of the NOAA the SEFSC’s responsibility to ensure region, the SEFSC will initiate a process Commissioned Corps as well as those partners are communicating and for SEFSC and partner institution FPCs, civilians. The ship’s officers and crew coordinating with the SEFSC, receiving SWLs, scientists, and vessel captains provide mission support and assistance all necessary marine mammal mitigation and crew to communicate with each to embarked scientists, and the vessel’s and monitoring training, and other about their experiences with Commanding Officer (CO) has ultimate implementing all required mitigation protected species interactions during responsibility for vessel and passenger and monitoring in a manner compliant research work with the goal of safety and, therefore, decision authority. with the proposed rule and LOA. The improving decision-making regarding When SEFSC-funded surveys are SEFSC will incorporate specific avoidance of adverse interactions. The conducted aboard cooperative platforms language into its contracts that specifies SEFSC will host at least one training (i.e., non-NOAA vessels), ultimate training requirements, operating annually (may be combined with other responsibility and decision authority procedures, and reporting requirements training requirements) to inform again rests with non-SEFSC personnel for protected species that will be decision-makers of various (i.e., vessel’s master or captain). required for all surveys conducted by circumstances that may arise during Decision authority includes the research partners, including those surveys, necessary action, and follow-up implementation of mitigation measures conducted on chartered vessels. To coordination and reporting of instances (e.g., whether to stop deployment of facilitate this requirement, SEFSC of take or possible take. The intent of trawl gear upon observation of marine would be required to hold at least one this new training program would be to mammals). The scientific party involved training per year with at least one draw on the collective experience of in any SEFSC survey effort is composed, representative from each partner people who have been making those in part or whole, of SEFSC staff and is institution (preferably chief scientists of decisions, provide a forum for the led by a Chief Scientist (CS). Therefore, the fishery independent surveys exchange of information about what because the SEFSC—not OMAO or any discussed in this rule) to review the went right and what went wrong, and other entity that may have authority proposed mitigation, monitoring and try to determine if there are any rules-

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of-thumb or key factors to consider that determination. SEFSC shall coordinate deployment and retrieval time). These would help in future decisions with all research partners, at least once short tow durations decrease the regarding avoidance practices. The annually, to ensure mitigation, opportunity for curious marine SEFSC would coordinate not only monitoring and reporting requirements, mammals to find the vessel and among its staff and vessel captains and procedures and decision-making investigate. Tow times are less than the crew but also with those from other processes contained within the 55 minute tow time restriction required fisheries science centers, research proposed regulations and LOA are for commercial shrimp trawlers not partners, the Southeast Regional Office, understood. All vessels must comply using turtle excluder devices (TEDs) (50 and other institutions with similar with applicable and relevant take CFR 223.206). The resulting tow experience. reduction plans, including any required distances are typically one to two nm or The SEFSC will coordinate with the soak time limits and gear length less, depending on the survey and trawl local Southeast Regional Stranding restrictions. speed. Short tow times reduce the Coordinator and the NMFS Stranding likelihood of entangling protected Trawl Mitigation Measures Coordinator for any unusual protected species. species behavior and any stranding, The SEFSC and research partners use The move-on rule will be applied to beached live/dead, or floating protected a variety of bottom trawl gears for all oceanic deep water trawls if species that are encountered during different research purposes. These trawl sightings occur anywhere around vessel field research activities. If a large whale types include various shrimp trawls (within 2 nm) during a 30 minute pre- is alive and entangled in fishing gear, (otter, western jib, mongoose, Falcon), gear deployment monitoring timeframe. the vessel will immediately call the U.S. high-opening bottom trawls, and flat net Vessels will move away if animals Coast Guard at VHF Ch. 16 and/or the bottom trawls (see Table 1–1 and appear at risk or trawling will be appropriate Marine Mammal Health and Appendix A in the DPEA). The SEFSC delayed until marine mammals have not Stranding Response Network for and its research partners also use been sighted for 30 min or otherwise instructions. All entanglements (live or modified beam trawls and benthic determined to no longer be at risk. If dead) and vessel strikes must be trawls pulled by hand that are not animals are still at risk after moving or reported immediately to the NOAA considered to pose a risk to protected 30 minutes have lapsed, the vessel will Fisheries Marine Mammal Stranding species due to their small size and very move again or the station will be Hotline at 1–877–433–8299. short tow durations. Therefore, these skipped. General Fishing Gear Measures smaller, hand pulled trawls are not Bottom trawl surveys conducted for subject to the mitigation measures purposes of researching gears designed The following measures describe provided here. mitigation application to all SEFSC to reduce sea turtle interaction (e.g., The following mitigation measures turtle exclusion device (TED) testing) surveys while measures specific to gear apply for trawl surveys: types follow. SEFSC will take all • and develop finfish bycatch mitigation Limit tow times to 30 minutes measures for commercial trawl fisheries necessary measures to avoid marine (except for sea turtle research trawls); mammal interaction with fishing gear • may have tow times of up to four hours. open codend close to deck/sorting These exceptions to the short tow used during fishery research surveys. table during haul back to avoid damage This includes implementing the move- duration protocols are necessary to meet to animals that may be caught in gear research objectives. TEDs are used in on rule (when applicable), which means and empty gear as quickly as possible delaying setting gear when marine nets that are towed in excess of 55 after retrieval haul back; minutes as required by 50 CFR 223.206. mammals are observed at or • delay gear deployment if marine When research objectives prevent the approaching the sampling site and are mammals are believed to be at-risk of installation of TEDs, tow time limits deemed to be at-risk of becoming interaction; entangled or hooked on any type of • retrieve gear immediately if marine will match those set by commercial fishing gear, and immediately pulling mammals is believed to be entangled or fishing regulations such as the skimmer gear from the water when marine at-risk of entanglement; trawl fishery which has a 55 min tow mammals are deemed to be at-risk of • implement marine mammal time limit. This research is covered becoming entangled or hooked on any mitigation measures included in the under the authority of the ESA and the type of fishing gear. SEFSC will, at all NMFS ESA Scientific Research permit regulations governing the taking, times, monitor for any unusual under which a survey may be operating; importing, and exporting of endangered circumstances that may arise at a • dedicated marine mammal and threatened species (50 CFR parts sampling site and use best professional observations shall occur at least 15 222–226). The SEFSC began using judgment to avoid any potential risks to minutes to beginning of net deployment; skimmer trawls in their TED testing in marine mammals during use of all this watch may include approach to the 2012. Mitigation measures in Scientific research equipment. sampling station; Research permit 20339, issued May 23, In some cases, marine mammals may • at least one scientist will monitor 2017, include: be attracted to the vessel during fishing. for marine mammals while the trawl is • Trawling must not be initiated To avoid increased risk of interaction, deployed and upon haul-back; when marine mammals (except the SEFSC will conduct fishery research • minimize ‘‘pocketing’’ in areas of dolphins or porpoises) are observed sampling as soon as practicable upon the net where dolphin depredation within the vicinity of the research and arriving at a sampling station and prior evidence is commonly observed; and the marine mammals must be allowed to to conducting environmental sampling. • continue investigation into gear either leave or pass through the area If fishing operations have been modifications (e.g., stiffening lazy lines) safely before trawling is initiated; suspended because of the presence of and e.g., the effectiveness of gear • Researchers must make every effort marine mammals, SEFSC may resume modification. to prevent interactions with marine fishing operations when interaction In 2008, standard tow durations for mammals and researchers must be with marine mammals is deemed fishery bottom trawl surveys were aware of the presence and location of unlikely. SEFSC may use best reduced from 55 minutes to 30 minutes these animals at all times as they professional judgment in making this or less at target depth (excluding conduct trawling activities;

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• During skimmer trawl surveys, a • During skimmer trawl surveys, a Live feed video or sonar monitoring of minimum of two staff, one on each side minimum of two staff, one on each side the trawl may be used in lieu of tow (port/starboard) of the vessel, must (port/starboard) of the vessel, must time limits. This mitigation measure is inspect the gear every five minutes to inspect the gear every five minutes to also used in addition to TEDs during monitor for the presence of marine monitor for the presence of marine some projects. Video or sonar feeds are mammals, mammals; monitored for the duration of the tow. • • Prior to retrieving the skimmer Prior to retrieving the skimmer If a TED is not installed in the trawl and trawl tail bags, the vessel must be trawl tail bags, the vessel must be a protected species is observed in the slowed from the active towing speed to slowed from the active towing speed to trawl then the tow is immediately 0.5–1.0 kn; 0.5–1.0 kn; • • terminated. If a TED is installed and a If a marine mammal enters the net, Should marine mammals enter the marine mammal is observed to have research area after the seine or tangle becomes entangled or dies, researchers difficulty escaping through the TED nets have been set, the lead line must be must (a) stop trawling activities and opening, or the individual is lost from raised and dropped in an attempt to immediately free the animal, (b) notify the video or sonar feed then the tow is the appropriate NMFS Regional make marine mammals in the vicinity aware of the net; immediately terminated. For all trawl Stranding Coordinator as soon as types, the lazy line is a source of possible and (c) report the incident • If marine mammals remain within entanglement. In particular, dolphins (permitted activities will be suspended the vicinity of the research area, tangle like to rub the line. Loose lines are until the Permits Division has granted or seine nets must be removed; and • prone to create a half-hitch around their approval to continue research); and If a marine mammal enters the trawl • Video monitoring of the TED must net, becomes entangled or captured, tail. Therefore, to mitigate this type of be used when trawling around Duck, researchers must stop activities and interaction, the SEFSC Harvesting North Carolina, to reduce take of immediately free the animal, notify the Systems Unit (HSU) has conducted Atlantic sturgeon (although this NMFS Southeast Regional Stranding limited research examining the potential requirement is not geared toward Coordinator as soon as possible, report use of lazy lines constructed of marine mammals, the camera feed can the incident within 2 weeks and, in alternative materials designed to reduce be used to observe marine mammals to addition to the written report, the marine mammal entanglement with inform decisions regarding Permit Holder must contact the Permits respect to material, thickness, and implementing mitigation). Division. stiffness. Polyester rope, also known as The SEFSC also holds an ESA- Other mitigation measures are Dacron, may be a suitable alternative to research permit to assess sea turtle included in research permit 16733–04 traditionally used polypropylene. abundance, stock identification, life that are designed for sea turtles but also Polyester rope is UV and abrasion history, and impacts of human have benefits to minimizing resistant and has less elasticity than activities; determine sea turtle entanglement of marine mammals. nylon, but does not lose strength when movements, fine-scale habitat These include: wet. Polyester, like polypropylene, does • Highly visible buoys must be characteristics and selection, and not absorb water, but has a higher attached to the float line of each net and delineation of foraging and nursery specific gravity (1.38), which causes it spaced at intervals of 10 yards or less; areas; and examine how sea turtle to sink. Polyester can be constructed Nets must be checked at intervals of less distributions correlate with temporal using a process that results in a medium than 30 minutes, and more frequently trends and environmental data or hard lay rope that that is stiff, avoids whenever turtles or other organisms are (Scientific Research Permit 16733–04). hockling (a twist in the line which gets observed in the net. If water That research permit includes a number caught in a block) and is self-coiling temperatures are ≤10 °C or ≥30 °C, nets of marine mammal conditions that must when loaded or unloaded off a capstan must be checked at less than 20-minute be followed and are incorporated into or gear hauler. The high specific gravity intervals (‘‘net checking’’ is defined as this proposed rule by reference: of this type of rope may pose a snagging a complete and thorough visual check of • Trawl tow times must not exceed 30 or hang-up hazard when used as a lazy the net either by snorkeling the net in minutes (bottom time) except in cases line in trawl operations. However, the clear water or by pulling up on the top when the net is continuously monitored smooth feel of the rope compared to line such that the full depth of the net with a real-time video camera or multi- polypropylene may reduce the is viewed along the entire length); The beam sonar system; attractiveness of the line to the rubbing float line of all nets must be observed at • Haul back must begin once a sea behavior of bottlenose dolphin. turtle or marine mammal enters the net all times for movements that indicate an In 2007, the HSU conducted regardless of time limits; animal has encountered the net (when • Seine net pulls must not exceed 45 this occurs the net must be immediately preliminary NOAA diver assisted trials minutes as part of a 2-hour deployment; checked). During diver assisted gear with High Density Polyethylene (HDPE) • Nets must not be put in the water evaluations (SEFSC Small Turtle TED rope as a replacement for traditional and trawls must not be initiated when Testing and Gear Evaluations), dive polypropylene. Compared to marine mammals are observed within teams are deployed on the trawls while polypropylene, HDPE polyethylene has the vicinity of the research; they are being towed. During this similar properties including negligible • Marine mammals must be allowed research, divers actively monitor the water absorption, UV resistance, and to either leave or pass through the area gear for protected species interactions low specific gravity, which allows it to safely before net setting or trawling is and use emergency signal floats to float. However, HDPE polyethylene may initiated; notify the vessel if an interaction occurs. be constructed with a harder lay than • Researchers must make every effort When the signal float is deployed the traditional polypropylene rope. Divers to prevent interactions with marine vessel terminates the tow and slows the found that half-hitching the line was mammals; gear down to a minimal forward speed more difficult than traditional • Researchers must be aware of the of less than 0.5 knots, which allows polypropylene line. However, presence and location of these animals divers to assist the protected species operational trials were not conducted to at all times as they conduct activities; escape. examine performance and usability

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aboard the vessel during extended polypropylene and the stiffest and nearshore waters, the move-on rule fishing operations. alternative rope, Samson SSR 100 MHL. will not be required for such surveys. Another alternative may be However divers commented that it was However, the chief scientist and/or replacement of the lazy line with 3⁄8 in. more difficult to introduce the loop in vessel captain will be required to take stainless steel cable or replacement of the stiffer Samson SSR 100 MHL than immediate action to reduce dolphin the aft portion of the lazy line with 3⁄8 the polypropylene line and more interaction should animals appear to be in. stainless steel cable. Replacement of difficult to introduce the loop along the at risk or are entangled in the net. For the entire lazy line with cable would outer portion of the lazy line with the skimmer trawl research, both the lazy require block replacement and the use sugar line attached due to the increased line and net can be monitored from the of dedicated winches for hauling the tension on the line. Use of an alternative vessel. However, this is not possible for gear. Replacing the aft portion of the stiffer line with low stretch in bottom trawls. Therefore, for bottom lazy line, where bottlenose dolphins combination with a short sugar line may trawls, researchers should use best typically interact with the line, would reduce the potential for bottlenose professional judgement to determine if not require any changes as long as the dolphin takes on lazy lines. However, gear deployment should be delayed or rope to cable connection is able to additional usability research is needed hauled. For example, the SCDNR has smoothly pass through existing blocks. with these alternative rope types to see noted one instance upon which However, each of these changes would how they perform under commercial dolphins appeared distressed, evident result in sinking and potential snagging conditions. Finally, more directed by the entire group converging on the or hang-up hazards. These dolphin/lazy line interaction behavior net during haul-back. They quickly modifications are also not without research is needed to better understand discovered a dolphin was entangled in consequences. Lazy line modifications the modes of interaction and provide the net. This and similar types of overt may require vessel equipment changes conservation engineers with the distress behaviors should be used by (e.g., blocks on research vessels) or may knowledge required to better formulate researchers monitoring the net to change the effectiveness of the catch, potential solutions. identify potential entanglement, precluding comparison of new data to Given the report’s results and requiring the net be hauled-in long-term data sets. In 2017, the HSU recommendations, NMFS is not immediately and quickly. conducted a follow-up study, funded by requiring the SEFSC implement lazy Pelagic trawls conducted in deep NMFS Office of Science and line modifications at this time. water (500–800 m deep) are typically Technology, to further investigate gear However, as an adaptive management modification and the potential strategy, NMFS will be periodically mid-water trawls and occur in oceanic effectiveness at reducing dolphin assessing lazy line modification as a waters where marine mammal species entanglement. potential mitigation measure in this and diversity is greater increased compared The following summarizes HSU’s future regulations. NMFS will continue to the coast or estuaries. Oceanic species 2017 research efforts on shrimp trawl to work with the SEFSC to determine if often travel in very large groups and are gear modification which was carried out gear modifications such as stiffer lazy less likely to have prior encounters and to inform development of this proposed lines are both warranted and practicable experience with trawl gear than inshore rule (the fully report can be found at to implement. Should the SEFSC bottlenose dolphins. For these trawls, a https://www.fisheries.noaa.gov/node/ volunteer to modify trawl lazy lines, dedicated marine mammal observer 23111). Gearhart and Hathaway (2018) NMFS will work with the researchers to would observe around the vessel for no provide the following summary of identify any potential benefit and costs less than 30 minutes prior to gear research methods and findings: From to doing so. deployment. If a marine mammal is June 9–22, 2017, HSU conducted gear In addition to interactions with the observed within 2 nm of the vessel, gear evaluations in Panama City, Florida, lazy line, the SEFSC has identified that deployment would be delayed until that with various lazy lines and holes in trawl nets resulting from animal is deemed to not be at risk of configurations. In addition to traditional dolphin depredation are most numerous entanglement (e.g., the animal is moving polypropylene, three types of 3 strand around net ‘‘pockets’’ where fish on a path away from the vessel) or the rope were examined; Samson Ultra-Blue congregate. Reinforcing these more vessel would move to a location absent Medium Hard Lay (MHL); Samson SSR vulnerable sections of the net could of marine mammals and deploy gear. If 100 MHL; and Samson XLR. Vertical help reduce entanglement. Similar to trawling operations have been delayed and horizontal profiles of each rope type lazy line modification investigations, because of the presence of protected were measured with and without a this potential mitigation measure will be species, the vessel resumes trawl ‘‘sugar line’’ attached in a twin-rigged further examined to determine its operations (when practicable) only trawl configuration. In addition, effectiveness and practicability. The when these species have not been dolphin interactions were simulated by proposed regulations identify sighted within 30 minutes or are NMFS divers with an aluminum ‘‘pocketing’’ of the net should be determined to no longer be at risk (e.g., dolphin fluke model. Results indicate minimized. moving away from deployment site). If that the vertical profiles were reduced Finally, marine mammal monitoring the vessel moves, the required 30- and horizontal profiles increased for all will occur during all trawls. Bottlenose minute monitoring period begins again. rope types when a 25 ft (7.6 m) ‘‘sugar dolphins are consistently interacting In extreme circumstances, the survey line’’ was added. Due to differences in with research trawls in the estuary and station may need to be cancelled if elasticity when compared to nearshore waters and are seemingly animals (e.g., delphinids) follow the polypropylene, the alternative rope attracted to the vessel, with most vessel. In addition to implementing the types experienced greater tension with dolphins converging around the net ‘‘move-on’’ rule, all trawling would be vertical profiles flattening, while the during haul-back (SCDNR Working conducted first to reduce the polypropylene rope maintained vertical Group, pers. comm., February 2, 2016). opportunity to attract marine mammals relief. Results of simulated dolphin This makes it difficult to ‘‘lose’’ to the vessel. However, the order of gear interactions were inconclusive with dolphins, even if moving stations. Due deployment is at the discretion of the divers able to introduce half-hitch loops to the known persistent behavior of FPC or SWL based on environmental around the model fluke with both dolphins around trawls in the estuary conditions. Other activities, such as

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water sampling or plankton tows, are • Hand-check the net every 30 • Monitor area for marine mammals conducted in conjunction with, or upon minutes if soak times are longer than 30 and, if present, delay setting gear until completion of, trawl activities. minutes or immediately if disturbance is the animal is deemed not at risk. Once the trawl net is in the water, the observed; • Immediately reel in lines if marine officer on watch, FPC or SWL, and/or • Pull gear immediately if mammals are deemed to be at risk of crew standing watch continue to disturbance in the nets is observed; interacting with gear. • • monitor the waters around the vessel Reduce net slack and excess Following existing Dolphin and maintain a lookout for protected floating and trailing lines; Friendly Fishing Tips: http:// • _ species as far away as environmental Repair damaged nets prior to sero.nmfs.noaa.gov/protected _ _ conditions allow. If protected species deploying; and resources/outreach and education/ • _ _ _ are sighted before the gear is fully Delay or pull all gear immediately documents/dolphin friendly fishing and implement the move-on rule if tips.pdf. retrieved, the most appropriate response • to avoid incidental take is determined marine mammal is at-risk of Not discard leftover bait overboard by the professional judgment of the FPC entanglement. while actively fishing. The dedicated observation will be • Inspect tackles daily to avoid or SWL, in consultation with the officer made by scanning the water and marsh unwanted line breaks. on watch. These judgments take into edge (if visible when working in When fishing with bottom or pelagic consideration the species, numbers, and estuarine waters) 360 degrees around longlines, the SEFSC will: (1) Limit behavior of the animals, the status of the the vessel where the net would be set. longline length and soak times to the trawl net operation (net opening, depth, If a marine mammal is sighted during minimum amount possible; (2) deploy and distance from the stern), the time it this observation period, nets would not longline gear first (after required would take to retrieve the net, and be deployed until the animal has left the monitoring) prior to conducting safety considerations for changing speed area, is on a path away from where the environmental sampling; (3) if any or course. Most marine mammals have net would be set, or has not been re- marine mammals are observed, delay been caught during haul-back sighted within 15 minutes. deploying gear unless animal is not at operations, especially when the trawl Alternatively, the research team may risk of hooking; (4) pull gear doors have been retrieved and the net is move the vessel to an area clear of immediately and implement the move- near the surface and no longer under marine mammals. If the vessel moves, on rule if any marine mammal is hooked tension. In some situations, risk of the 15 minute observation period is or at risk of being hooked; (5) deploy adverse interactions may be diminished repeated. Monitoring by all available longline gear prior to environmental by continuing to trawl with the net at crew would continue while the net is sampling; and (6) avoid chumming (i.e., depth until the protected species have being deployed, during the soak, and baiting water). More detail on these left the area before beginning haul-back during haulback. measures are described below. operations. In other situations, swift If marine mammals are sighted in the Prior to arrival on station (but within retrieval of the net may be the best peripheral sampling area during active 0.5 nautical mile), the officer, crew course of action. The appropriate course netting, the SEFSC will raise and lower members, and scientific party on watch of action to minimize the risk of the net leadline. If marine mammals do visually scan for protected species for incidental take of protected species is not immediately depart the area and the 30 minutes prior to station arrival for determined by the professional animal appears to be at-risk of pelagic longline surveys and 15 minutes judgment of the FPC or SWL based on entanglement (e.g,, interacting with or prior for other surveys. Binoculars will all situation variables, even if the on a path towards the net), the SEFSC be used as necessary to survey the area choices compromise the value of the delay or pull all gear immediately and, while approaching and upon arrival at data collected at the station. Care is if required, implement the move-on rule the station, while the gear is deployed, taken when emptying the trawl, if marine mammal is at-risk of and during haulback. Additional including opening the codend as close entanglement. monitoring is conducted 15 minutes as possible to the deck of the checker (or If protected species are not sighted prior to setting longline gear by sorting table) in order to avoid damage during the 15 minute observation members of the scientific crew that to protected species that may be caught period, the gear may be set. Waters monitor from the back deck while in the gear but are not visible upon surrounding the net and the net itself baiting hooks. If protected species are retrieval. The gear is emptied as quickly would be continuously monitored sighted prior to setting the gear or at any as possible after retrieval in order to during the soak. If protected species are time the gear is in the water, the bridge determine whether or not protected sighted during the soak and appear to be crew and SWL are alerted immediately. species are present. at risk of interaction with the gear, then Environmental conditions (e.g., lighting, Seine Nets the gear is pulled immediately. If fishing sea state, precipitation, fog, etc.) often operations are halted, operations resume limit the distance for effective visual The SEFSC will implement the when animal(s) have not been sighted monitoring of protected species. If following mitigation measures when within 15 minutes or are determined to marine mammals are sighted during any fishing with seine nets (e.g., gillnets, no longer be at risk, as determined by monitoring period, the ‘‘move-on’’ rule, trammel nets): the judgment of the FPC or SWL. In as described in the trawling mitigation • Conduct gillnet and trammel net other instances, the station is moved or section above would be implemented. If research activities during daylight hours cancelled. If any disturbance in the gear longline operations have been delayed only; is observed in the gear, it is immediately because of the presence of protected • Limit soak times to the least amount checked or pulled. species, the vessel resumes longline of time required to conduct sampling; operations only when these species • Conduct dedicated marine mammal Hook and Line Gear Mitigation have not been sighted within 15 observation monitoring beginning 15 In addition to the general mitigation minutes or otherwise determined to no minutes prior to deploying the gear and measures listed above, the SEFSC will longer be at risk. The risk decision is at continue through deployment and implement the following mitigation the discretion of the FPC or SWL and is haulback; measures: dependent on the situation. After the

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required monitoring period, longline fishing. If a marine mammal is observed All NOAA research vessels operating in gear is always the first equipment or within 50 meters of the vessel or on a North Atlantic right whale habitat fishing gear to be deployed when the path toward the vessel, electrofishing participate in the Right Whale Early vessel arrives on station. would be delayed. Fishing would not Warning System. If marine mammals are detected begin until the animal is outside of the SEFSC research vessel captains and during setting operations or while the 50 m safety zone or on a consistent path crew watch for marine mammals while gear is in the water and are considered away from the vessel. Alternatively, if underway during daylight hours and to be at risk (e.g., moving towards animals do not leave the area, the vessel take necessary actions to avoid them. deployment site, displaying behaviors of could move to another sampling station. There are currently no Marine Mammal potentially interacting with gear, etc.), If the vessel moves, the 15 minutes Observers (MMOs) aboard the vessels the FPC or SWL in conjunction with the observation period is repeated. During dedicated to watching for marine officer on watch may halt the setting electrofishing, the research crew would mammals to minimize the risk of operation or call for retrieval of gear also monitor for marine mammals. If collisions, although the large NOAA already set. The species, number, and animals are observed within or a path vessels (e.g., NOAA Ship Pisces) behavior of the protected species are toward the 50 m safety zone, operated by the NOAA Office of Marine considered along with the status of the electrofishing would be terminated and and Aviation Operations (OMAO) ship and gear, weather and sea not resume until the animal is clear of include one bridge crew dedicated to conditions, and crew safety factors and on a path away from the 50 m safety watching for obstacles at all times, when making decisions regarding gear zone. All samples collected during including marine mammals. At any time deployment delay or retrieval. electrofishing are to remain on the during a survey or in transit, any bridge There are also a number of standard vessel and not discarded until all personnel that sights marine mammals measures designed to reduce hooking electrofishing is completed to avoid that may intersect with the vessel course potential and minimize injury. In all attracting protected species. immediately communicates their pelagic longline sets, gangions are 110 Vessel speed—Vessel speed during presence to the helm for appropriate percent as long as the drop line depth; active sampling is less than 5 kn course alteration or speed reduction as therefore, this gear configuration allows (average 2–3 kn) while transit speeds to soon as possible to avoid incidental a potentially hooked marine mammal and from sampling sites vary from 6–14 collisions, particularly with large the ability to reach the surface. SEFSC kn but average 10 kn. These low vessel whales (e.g., North Atlantic right longline protocols specifically prohibit speeds minimize the potential for ship whales). chumming reducing any attraction. strike (see ‘‘Potential Effects of the The Right Whale Early Warning Further, no stainless steel hooks are Specified Activity on Marine Mammals System is a multi-agency effort that used so that in the event a hook can not and Their Habitat’’ for an in-depth includes the SEFSC, the Florida Fish be retrieved from an animal, it will discussion of ship strike). At any time and Wildlife Conservation Commission corrode. Per PLTRP, the SEFSC pelagic during a survey or in transit, if a crew (FWCC), U.S. Coast Guard, U.S. Navy, longline survey uses the Pelagic member standing watch or dedicated and volunteer observers. Sightings of Longline Marine Mammal Handling and marine mammal observer sights marine the critically endangered North Atlantic Release Guidelines for any pelagic mammals that may intersect with the right whale are reported from aerial longline sets made within the Atlantic vessel course that individual will surveys, shipboard surveys, whale EEZ. These procedures would also be immediately communicate the presence watch vessels, and opportunistic implemented in the GOMRA and CRA. of marine mammals to the bridge for sources (U.S. Coast Guard, commercial Other gears—The SEFSC deploys a appropriate course alteration or speed ships, fishing vessels, and the general wide variety of gear to sample the reduction, as possible, to avoid public). Whale sightings are reported in marine environment during all of their incidental collisions. real time to the Right Whale Early research cruises. Many of these types of While transiting in areas subjected to Warning System network and gear (e.g., chevron fish trap, eel traps, the North Atlantic ship strike rule, all information is disseminated to mariners dip nets, video cameras and ROV SEFSC- affiliated research vessels within a half hour of a sighting. The deployments) are not considered to pose (NOAA vessels, NOAA chartered program was designed to reduce any risk to marine mammals due to their vessels, and research partner vessels) collisions between ships and North size, deployment methods, or location, will abide by the required speed Atlantic right whales by alerting and therefore are not subject to restrictions and sighting alert protocols. mariners to the presence of the whales mitigation. However, at all times when The ship strike rule for the southeast in near real time. Under the proposed the SEFSC is conducting survey U.S. seasonal management area (SMA) rule, all NOAA-affiliated vessels operations at sea, the OOD and/or CS requires that, from November 15 operating in North Atlantic right whale and crew will monitor for any unusual through April 15, all vessels 65 feet or habitat will be required to participate in circumstances that may arise at a longer must slow to 10 kn or less in the the Right Whale Early Warning System. sampling site and use best professional right whale calving and nursery grounds Acoustic and Visual Deterrent judgment to avoid any potential risks to which are bounded to the north by Devices—Acoustic and visual deterrents marine mammals during all vessel latitude 31°27′ N, to the south by 29°45′ include, but are not limited; to pingers, operation and use of research N, and to the east by 80°51′36″ W. Mid- recordings of predator vocalizations, equipment. Atlantic SMAs include several port or light sticks, and reflective twine/rope. Electrofishing—Electrofishing occurs bay entrances from northern Georgia to Pingers are underwater sound-emitting on small vessels and operates with a Rhode Island between November 1 and devices attached to gear that have been 3000 watt pulsed direct current for 15 April 30. In addition, dynamic shown to decrease the probability of minutes. The electric field is less than management areas (DMAs) are interacuetions with certain species of 20 feet around the electrofishing vessel. temporary areas created around right marine mammals. Pingers have been Before the electrofishing vessel begins whale sightings, the size of which shown to be effective in deterring some operating, a dedicated marine mammal depends on the number of whales marine mammals, particularly harbor observer would scan the surrounding sighted. Voluntary speed reductions porpoises, from interacting with gillnet waters for at least 15 minutes prior to may apply when no SMA is in effect. gear (Nowacek et al. 2007, Carretta and

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Barlow 2011). Multiple studies have bottlenose dolphins have the potential disentangling marine mammals carries reported large decreases in harbor to interact has been approached with inherent safety risks, and using best porpoise mortality (approximately caution. Two primary concerns professional judgment and ensuring eighty to ninety percent) in bottom-set expressed with regard to pinger human safety is paramount. gillnets (nets composed of vertical panes effectiveness in reducing marine Captured live or injured marine of netting, typically set in a straight line mammal bycatch relate to habituation mammals are released from research and either anchored to the bottom or (i.e., marine mammals may become gear and returned to the water as soon drifting) during controlled experiments habituated to the sounds made by the as possible with no gear or as little gear (e.g., Kraus et al., 1997; Trippel et al., pingers, resulting in increasing bycatch remaining on the animal as possible. 1999; Gearin et al., 2000). Using rates over time; Dawson, 1994; Cox et Animals are released without removing commercial fisheries data rather than a al., 2001; Carlstro¨m et al., 2009) and the them from the water if possible, and controlled experiment, Palka et al. ‘‘dinner bell effect’’ (Dawson, 1994; data collection is conducted in such a (2008) reported that harbor porpoise Richardson et al., 1995), which implies manner as not to delay release of the bycatch rates in the northeast U.S gillnet that certain predatory marine mammal animal(s) or endanger the crew. SEFSC fishery when fishing without pingers species may come to associate pingers is responsible for training SEFSC and was about two to three times higher with a food source (e.g., fish caught in partner researchers on how to identify compared to when pingers were used. nets) with the result that bycatch rates different species; handle and bring After conducting a controlled may be higher in nets with pingers than marine mammals aboard a vessel; assess experiment in a California drift gillnet in those without. the level of consciousness; remove fishery during 1996–97, Barlow and The BDTRP, after years of directed fishing gear; and return marine Cameron (2003) reported significantly investigation, found pingers are not mammals to water. Human safety is lower bycatch rates when pingers were effective at deterring bottlenose always the paramount concern. used for all cetacean species combined, dolphins from depredating on fish At least two persons aboard SEFSC all pinniped species combined, and captured by trawls and gillnets. During ships and one person aboard smaller specifically for short-beaked common research driven by the BDTRT efforts to vessels, including vessels operated by dolphins (85 percent reduction) and better understand the effectiveness of partners where no SEFSC staff are California sea lions (69 percent pingers on bottlenose dolphins, one present, will be trained in marine reduction). While not a statistically became entangled and drowned in a net mammal handling, release, and significant result, catches of Pacific outfitted with a pinger. Dolphins can disentanglement procedures. If a marine white-sided dolphins (which are become attracted to the sound of the mammal is entangled or hooked in historically one of the most frequently pinger because they learn it signals the fishery research gear and discovered alive, the SEFSC or affiliate will follow captured species in SEFSC surveys; see presence of fish (i.e., the ‘‘dinner bell safe handling procedures. To facilitate Table 4) were reduced by seventy effect’’), raising concerns about potential this training, SEFSC would be required percent. Carretta et al. (2008) increased entanglement risks (Cox et al., to ensure relevant researchers attend the subsequently examined nine years of 2003; Read et al., 2004 and 2006; and NMFS Highly Migratory Species/ observer data from the same drift gillnet Read and Waples 2010). Due to the lack Protected Species Safe Handling, fishery and found that pinger use had of evidence that pingers are effective at Release, and Identification Workshop eliminated beaked whale bycatch. deterring bottlenose dolphins coupled with the potential dinner-bell effect, the www.nmfs.noaa.gov/sfa/hms/ Carretta and Barlow (2011) assessed the BDTRP does not recommend them for compliance/workshops/protected_ long-term effectiveness of pingers in use in SEFSC for bottlenose dolphins. species_workshop/index.html or other reducing marine mammal bycatch in the The effectiveness of acoustic and similar training. The SEFSC shall California drift gillnet fishery by visual deterrents for species provide SEFSC scientists and partner evaluating fishery data from 1990–2009 encountered in the ARA, GOMRA, and institutions with the Protected Species (with pingers in use beginning in 1996), CRA is uncertain. Therefore, the SEFSC Safe Handling and Release Manual (see finding that bycatch rates of cetaceans will not be required to outfit gear with Appendix D is SEFSC’s application) and were reduced nearly fifty percent in sets deterrent devices but is encouraged to advise researchers to follow this using a sufficient number of pingers. undertake investigations on the efficacy manual, in addition to lessons learned However, in a behavioral response study of these measures where unknown (i.e., during training, should a marine investigating bottlenose dolphin not for surveys in which bottlenose mammal become entangled during a behavior around gillnets outfitted with dolphins are primary bycatch) in order survey. For those scientists conducting acoustic alarms in North Carolina, there to minimize potential for take. longline surveys, the SEFSC shall was no significant difference is number Disentanglement Handling provide training on the Pelagic Longline of dolphins or closest approach between Procedures—The SEFSC will implement Take Reduction Team Marine Mammal nets with alarms and nets without a number of handling protocols to Handling and Release Guidelines. alarms (Cox et al., 2003). Studies of minimize potential harm to marine Based on our evaluation of the acoustic deterrents in a trawl fishery in mammals that are incidentally taken applicant’s proposed measures, as well Australia concluded that pingers are not during the course of fisheries research as other measures considered by NMFS, likely to be effective in deterring activities. In general, protocols have NMFS has preliminarily determined bottlenose dolphins, as they are already already been prepared for use on that the proposed mitigation measures aware of the gear due to the noisy nature commercial fishing vessels. Although provide the means of effecting the least of the fishery (Stephenson and Wells commercial fisheries are known to take practicable impact on the affected 2008, Allen et al. 2014). Acoustic a larger number of marine mammals species or stocks and their habitat, deterrents were also ineffective in than fisheries research, the nature of paying particular attention to rookeries, reducing bycatch of common dolphins entanglements are similar. Therefore, mating grounds, and areas of similar in the U.K. bass pair trawl fishery the SEFSC would adopt commercial significance. (Mackay and Northridge 2006). fishery disentanglement protocols, Based on our evaluation of the The use and effectiveness of acoustic which are expected to increase post- SEFSC’s proposed measures, as well as deterrent devices in fisheries in which release survival. Handling or other measures considered by NMFS,

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NMFS has preliminarily determined dolphins and sea turtles before any nets noise); (2) affected species (e.g., life that the proposed mitigation measures are retrieved. If these animals are history, dive patterns); (3) co-occurrence provide the means effecting the least observed they will be released of marine mammal species with the practicable impact on the affected immediately. At least one TPWD action; or (4) biological or behavioral species or stocks and their habitat, research aboard gillnetting survey context of exposure (e.g., age, calving or paying particular attention to rookeries, vessels will be trained in NMFS- feeding areas). mating grounds, and areas of similar approved Marine Mammal Handling • Individual marine mammal significance. Procedures. responses (behavioral or physiological) The TPWD would remove fishing to acoustic stressors (acute, chronic, or TPWD Mitigation for Marine Mammals grids from their sampling areas where cumulative), other stressors, or and Their Habitat dolphins have been taken on more than cumulative impacts from multiple The TPWD would undertake a one occasion or where multiple adjacent stressors; number of measures to minimize risk of grids have had at least one dolphin • How anticipated responses to entangling bottlenose dolphins. Only encounter. To date, grids which meet stressors impact either: (1) Long-term new or fully repaired gill nets will be one or both of these criteria are (1) fitness and survival of individual used thereby eliminating holes. Gill nets Aransas Bay, just south of Allyn’s Bight marine mammals; or (2) populations, will be set with minimal slack and a (grid #’s 280, 290, 291, 301, see Fig.3 in species, or stocks; very short marker buoy attached to the TPWD’s application), (2) Corpus Christi • Effects on marine mammal habitat deep end of the net. This reduction in Bay, south of Ingleside shoreline (CC (e.g., marine mammal prey species, slack and float buoy length is designed grid #132, see Fig. 4 in TPWD’s acoustic habitat, or other important to reduce possible entanglement. The application), and (3) Lower Laguna physical components of marine TPWD would also modify the nets to Madre, in Redfish Bay (LLM grid #47, mammal habitat); and • greatly reduce or eliminate any gaps see Fig 5 in TPWD’s application). Mitigation and monitoring between the float/lead line and the net. Based on our evaluation of the effectiveness. As currently configured, nets are tied to TPWD’s proposed measures, as well as SEFSC Proposed Monitoring and the lines every eight in. creating a gap other measures considered by NMFS, Reporting between the net and line of NMFS has preliminarily determined approximately six to eight in. depending that the proposed mitigation measures The SEFSC plans to make more on the mesh size. TPWD field crews provide the means effecting the least systematic its training, operations, data report that entanglement has typically practicable impact on the affected collection, animal handling and occurred in the float or lead lines in or species or stocks and their habitat, sampling protocols, etc. in order to near the gap in question. TPWD would paying particular attention to rookeries, improve its ability to understand how tie the net to the lines at no more than mating grounds, and areas of similar mitigation measures influence 4 in. intervals, reducing the gap size to significance. interaction rates and ensure its research less than four in. should help prevent operations are conducted in an getting a tail, pectoral, or fluke fin Proposed Monitoring and Reporting informed manner and consistent with getting caught in these gaps. In order to issue an incidental take lessons learned from those with Prior to setting nets, dedicated marine authorization for an activity, section experience operating these gears in mammal observations will be conducted 101(a)(5)(A) of the MMPA states that close proximity to marine mammals. We by at least one researcher trained in NMFS must set forth ‘‘requirements propose the monitoring requirements marine mammal detection techniques. If pertaining to the monitoring and described below. dolphins are observed around or on a reporting of such taking.’’ The MMPA Marine mammal watches are a path toward the sampling site, TPWD implementing regulations at 50 CFR standard part of conducting fisheries would delay setting the net until the 216.104 (a)(13) require that requests for research activities and are implemented animal has moved and is on a path away incidental take authorizations must as described previously in ‘‘Proposed from the site. If an animal is observed include the suggested means of Mitigation.’’ Dedicated marine mammal around and on a path toward the accomplishing the necessary monitoring observations occur as described (1) for sampling area while setting the net, the and reporting that will result in some period prior to deployment of net will be hauled back aboard until the increased knowledge of the species and most research gear; (2) throughout animal has moved on. If animals remain of the level of taking or impacts on deployment and active fishing of all in the area, TPWD will move on to populations of marine mammals that are research gears; (3) for some period prior another site not in the animal’s path expected to be present in the proposed to retrieval of gear; and (4) throughout without setting the net. When a net is action area. retrieval of research gear. Observers set, TPWD would minimize soak time Monitoring and reporting should record the species and estimated by utilizing the ‘‘last out/first in’’ requirements prescribed by NMFS number of animals present and their strategy for gill nets set in sites where should contribute to improved behaviors, which may be valuable marine mammals have been understanding of one or more of the information towards an understanding encountered within the last 5 years. A following: of whether certain species may be net set in this manner will be deployed • Occurrence of marine mammal attracted to vessels or certain survey last and retrieved first, reducing soak species or stocks in the action area (e.g., gears. Separately, on white boats, times by an average of 1.35 hours but a presence, abundance, distribution, marine mammal watches are conducted maximum of 6.6 hours. density); by watch-standers (those navigating the TPWD researchers will immediately • Nature, scope, or context of likely vessel and other crew; these will respond to net disturbances when marine mammal exposure to potential typically not be SEFSC personnel) at all setting and retrieving nets to determine stressors/impacts (individual or times when the vessel is being operated. if a dolphin is entangled and, if so, will cumulative, acute or chronic), through The primary focus for this type of watch release the dolphin immediately. All better understanding of: (1) Action or is to avoid striking marine mammals nets set the night before will be environment (e.g., source and to generally avoid navigational inspected for the presence of bottlenose characterization, propagation, ambient hazards. These watch-standers typically

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have other duties associated with practicable to simplify what are ‘‘Protected Species Handling Procedures navigation and other vessel operations inherently variable and complex for SEFSC Fisheries Research Vessels.’’ and are not required to record or report situational decisions into rules that may SEFSC Reporting to the scientific party data on marine be defined on paper. However, it is our mammal sightings, except when gear is intent that use of best professional As is normally the case, SEFSC will being deployed or retrieved. judgment be an iterative process from coordinate with the relevant stranding coordinators for any unusual marine Training year to year, in which any at-sea decision-maker (i.e., responsible for mammal behavior and any stranding, The SEFSC anticipates that additional decisions regarding the avoidance of beached live/dead, or floating marine information on practices to avoid marine mammal interactions with mammals that are encountered during marine mammal interactions can be survey gear through the application of field research activities. The SEFSC will gleaned from training sessions and more best professional judgment) learns from follow a phased approach with regard to systematic data collection standards. the prior experience of all relevant the cessation of its activities and/or The SEFSC will conduct annual SEFSC personnel (rather than from reporting of such events, as described in trainings for all chief scientists and solely their own experience). The the proposed regulatory text following other personnel who may be responsible outcome should be increased this preamble. In addition, Chief for conducting dedicated marine transparency in decision-making Scientists (or cruise leader, CS) will mammal visual observations to explain processes where best professional provide reports to SEFSC leadership mitigation measures and monitoring and judgment is appropriate and, to the and to the Office of Protected Resources reporting requirements, mitigation and extent possible, some degree of (OPR). As a result, when marine monitoring protocols, marine mammal standardization across common mammals interact with survey gear, identification, recording of count and situations, with an ultimate goal of whether killed or released alive, a report disturbance observations (relevant to reducing marine mammal interactions. provided by the CS will fully describe AMLR surveys), completion of It is the responsibility of the SEFSC to any observations of the animals, the datasheets, and use of equipment. Some facilitate such exchange. context (vessel and conditions), of these topics may be familiar to SEFSC decisions made and rationale for staff, who may be professional Handling Procedures and Data decisions made in vessel and gear biologists, The SEFSC shall determine Collection handling. The circumstances of these the agenda for these trainings and Improved standardization of handling events are critical in enabling the SEFSC ensure that all relevant staff have procedures were discussed previously and OPR to better evaluate the necessary familiarity with these topics. in ‘‘Proposed Mitigation.’’ In addition to conditions under which takes are most The first such training will include the benefits implementing these likely occur. We believe in the long term three primary elements: protocols are believed to have on this will allow the avoidance of these First, the course will provide an types of events in the future. overview of the purpose and need for animals through increased post-release survival, SEFSC believes adopting these The SEFSC will submit annual the authorization, including mandatory summary reports to OPR including: mitigation measures by gear and the protocols for data collection will also purpose for each, and species that the increase the information on which (1) Annual line-kilometers surveyed during SEFSC is authorized to incidentally ‘‘serious injury’’ determinations (NMFS, which the EK60, ME70, SX90 (or equivalent 2012a, b) are based and improve sources) were predominant (see ‘‘Estimated take. Take by Acoustic Harassment’’ for further Second, the training will provide scientific knowledge about marine mammals that interact with fisheries discussion), specific to each region; detailed descriptions of reporting, data (2) Summary information regarding use of collection, and sampling protocols. This research gears and the factors that all trawl, net, and hook and line gear, portion of the training will include contribute to these interactions. SEFSC including number of sets, tows, hook hours, instruction on how to complete new personnel will be provided standard etc., specific to each research area and gear; data collection forms such as the marine guidance and training regarding (3) Accounts of all incidents of marine mammal watch log, the incidental take handling of marine mammals, including mammal interactions, including how to identify different species, bring circumstances of the event and descriptions form (e.g., specific gear configuration of any mitigation procedures implemented or and details relevant to an interaction an individual aboard a vessel, assess the level of consciousness, remove fishing not implemented and why; with protected species), and forms used (4) Summary information related to any for species identification and biological gear, return an individual to water and disturbance of marine mammals and distance sampling. The biological data collection log activities pertaining to the of closest approach; and sampling training module will interaction. (5) A written description of any mitigation include the same sampling and The SEFSC will record interaction research investigation efforts and findings necropsy training that is used for the information on either existing data (e.g., lazy line modifications); Southeast Regional Observer training. forms created by other NMFS programs (6) A written evaluation of the or will develop their own standardized effectiveness of SEFSC mitigation strategies The SEFSC will also dedicate a in reducing the number of marine mammal portion of training to discussion of best forms. To aid in serious injury interactions with survey gear, including best professional judgment (which is determinations and comply with the professional judgment and suggestions for recognized as an integral component of current NMFS Serious Injury changes to the mitigation strategies, if any; mitigation implementation; see Guidelines, researchers will also answer and ‘‘Proposed Mitigation’’), including use a series of supplemental questions on (7) Details on marine mammal-related in any incidents of marine mammal the details of marine mammal training taken by SEFSC and partner interaction and instructive examples interactions. scientists. where use of best professional judgment Finally, for any marine mammals that The period of reporting will be was determined to be successful or are killed during fisheries research annually, beginning one year post- unsuccessful. We recognize that many activities, when practicable, scientists issuance of any LOA, and the report factors come into play regarding will collect data and samples pursuant must be submitted not less than ninety decision-making at sea and that it is not to Appendix D of the SEFSC DEA, days following the end of a given year.

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Submission of this information is in consistently for 15 minutes or are not re- • A summary of all relevant marine service of an adaptive management sighted within 15 minutes. mammal training. framework allowing NMFS to make TPWD currently reports marine Negligible Impact Analyses and mammal entanglements to NMFS appropriate modifications to mitigation Determinations and/or monitoring strategies, as Southeast Regional Office (SERO). necessary, during the proposed five-year However, reporting is not standardized Introduction—NMFS has defined period of validity for these regulations. and, in the past, has led to questions negligible impact as an impact resulting Should an incidental take occur, the regarding the circumstances of the take from the specified activity that cannot SEFSC, or affiliated partner involved in and disposition of the animal. The be reasonably expected to, and is not the taking, shall follow the NMFS Final proposed regulations would standardize reasonably likely to, adversely affect the Take Reporting and Response a comprehensive reporting scheme and species or stock through effects on Procedures, dated January 15, 2016. require TPWD to report all incidents of annual rates of recruitment or survival NMFS has established a formal marine mammal interaction to OPR and (50 CFR 216.103). A negligible impact incidental take reporting system, the NMFS SERO within 48 hours of finding is based on the lack of likely PSIT database, requiring that incidental occurrence. Also within 48 hours, adverse effects on annual rates of takes of protected species be reported TPWD shall log the incident in NMFS’ recruitment or survival (i.e., population- within 48 hours of the occurrence. The Protected Species Incidental Take level effects). An estimate of the number PSIT generates automated messages to (PSIT) database and provide any of takes alone is not enough information on which to base an impact NMFS leadership and other relevant supplemental information to OPR and determination. In addition to staff, alerting them to the event and to SERO upon request. Information related considering estimates of the number of the fact that updated information to marine mammal interaction (animal marine mammals that might be ‘‘taken’’ describing the circumstances of the captured or entangled in research gear) by mortality, serious injury, and Level A event has been inputted to the database. must include the following: • or Level B harassment, we consider The PSIT and CS reports represent not Time, date, and location (latitude/ other factors, such as the likely nature only valuable real-time reporting and longitude) of the incident; • of any behavioral responses (e.g., information dissemination tools but also Monitoring conducted prior to and intensity, duration), the context of any serve as an archive of information that occurring at the time of incident; • such responses (e.g., critical may be mined in the future to study Environmental conditions (e.g., wind speed and direction, Beaufort sea reproductive time or location, why takes occur by species, gear, region, migration), as well as effects on habitat, etc. state, cloud cover, visibility); • Description of the animal(s) and the likely effectiveness of The SEFSC will also collect and involved (e.g., size, age class); mitigation. We also assess the number, report all necessary data, to the extent • Water depth and net location where intensity, and context of estimated takes practicable given the primacy of human entangled; by evaluating this information relative safety and the well-being of captured or • Nature of the entanglement (i.e., to population status. Consistent with the entangled marine mammals, to facilitate part of animal entangled, where in net 1989 preamble for NMFS’s serious injury (SI) determinations for entangled) implementing regulations (54 FR 40338; marine mammals that are released alive. • Fate of the animal(s); September 29, 1989), the impacts from The SEFSC will require that the CS • Detailed description of events, other past and ongoing anthropogenic complete data forms and address including how animals was activities are incorporated into this supplemental questions, both of which disentangled and behavior upon release, analysis via their impacts on the have been developed to aid in SI including signs of injury (if alive); environmental baseline (e.g., as determinations. The SEFSC understands • Photographs or video footage of the reflected in the regulatory status of the the critical need to provide as much animal(s). species, population size and growth rate relevant information as possible about TPWD would also be required to where known, ongoing sources of marine mammal interactions to inform submit an annual report to OPR not later human-caused mortality, and specific decisions regarding SI determinations. than ninety days following the end of consideration of take by M/SI In addition, the SEFSC will perform all the fall sampling season. TPWD would previously authorized for other NMFS necessary reporting to ensure that any provide a final report within thirty days research activities). incidental M/SI is incorporated as following resolution of comments on the We note here that the takes from appropriate into relevant SARs. draft report. These reports shall contain, potential gear interactions enumerated at minimum, the following: below could result in non-serious TPWD Proposed Monitoring and • Reporting Locations and time/date of all net injury, but their worse potential sets; outcome (mortality) is analyzed for the Issuance of the proposed regulations • all instances of marine mammal purposes of the negligible impact would require TPWD to monitor for observations and descriptions of any determination. marine mammals starting 0.5 miles (800 mitigation procedures implemented or We discuss here the connection, and meters) from sampling site and for 15 not implemented and why; differences, between the legal minutes at sampling site prior to setting • all incidents of marine mammal mechanisms for authorizing incidental the net. Should a marine mammal be interactions, including all information take under section 101(a)(5) for observed within 0.5 miles (800 meters) required in § 219.86(b); activities such as SEFSC’s research of the site and is on a path toward the • A written evaluation of the activities, and for authorizing incidental site, the net would not be deployed. effectiveness of TPWD mitigation take from commercial fisheries. In 1988, Should a marine mammal be observed strategies in reducing the number of Congress amended the MMPA’s during the 15-minute observation period marine mammal interactions with provisions for addressing incidental at the site, the net would not be survey gear, including gear take of marine mammals in commercial deployed. The net may only be modifications and best professional fishing operations. Congress directed deployed if marine mammals are judgment and suggestions for changes to NMFS to develop and recommend a observed on a path away from the site the mitigation strategies, if any; new long-term regime to govern such

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incidental taking (see MMC, 1994). The Congress called for PBR to be applied Endangered Species Act) to add need to develop a system suited to the within the management framework for compliance with the new section 118 unique circumstances of commercial commercial fishing incidental take but kept the requirement for a negligible fishing operations led NMFS to suggest under section 118 of the MMPA. As a impact finding. Congress thus a new conceptual means and associated result, PBR cannot be applied understood that the determination of regulatory framework. That concept, appropriately outside of the section 118 negligible impact and application of Potential Biological Removal (PBR), and regulatory framework without PBR may share certain features but are, a system for developing plans consideration of how it applies within in fact, different. containing regulatory and voluntary section 118 framework, as well as how Since the introduction of PBR, NMFS measures to reduce incidental take for other statutory management frameworks has used the concept almost entirely fisheries that exceed PBR were in the MMPA differ from the framework within the context of implementing incorporated as sections 117 and 118 in in section 118. PBR was not designed sections 117 and 118 and other the 1994 amendments to the MMPA. and is not used as an absolute threshold commercial fisheries management- PBR is defined in Section 3 of the limiting commercial fisheries. Rather, it related provisions of the MMPA. MMPA as the maximum number of serves as a means to evaluate the Although there are a few examples animals, not including natural relative impacts of those activities on where PBR has informed agency mortalities, that may be removed from a marine mammal stocks. Even where deliberations under other sections of the marine mammal stock while allowing commercial fishing is causing M/SI at MMPA, where PBR has been raised, it that stock to reach or maintain its levels that exceed PBR, the fishery is not has been a consideration and not optimum sustainable population (OSP) suspended. When M/SI exceeds PBR in dispositive to the issue at hand. Further, and, although not controlling, can be the commercial fishing context under the agency’s thoughts regarding the one measure considered among other section 118, NMFS may develop a take potential role of PBR in relation to other factors when evaluating the effects of M/ reduction plan, usually with the programs of the MMPA have evolved SI on a marine mammal species or stock assistance of a take reduction team. The since the agency’s earlier applications to during the section 101(a)(5)(A) process. take reduction plan will include section 101(a)(5) decisions. The MMPA OSP is defined in section 3 of the measures to reduce and/or minimize the requires that PBR be estimated in stock MMPA as the number of animals which taking of marine mammals by assessment reports and that it be used will result in the maximum productivity commercial fisheries to a level below in applications related to the of the population or the species, keeping the stock’s PBR. That is, where the total management of take incidental to in mind the carrying capacity of the annual human-caused M/SI exceeds commercial fisheries (i.e., the take habitat and the health of the ecosystem PBR, NMFS is not required to halt reduction planning process described in of which they form a constituent fishing activities contributing to total M/ section 118 of the MMPA and the element. A primary goal of the MMPA SI but rather utilizes the take reduction determination of whether a stock is is to ensure that each species or stock process to further mitigate the effects of ‘‘strategic’’ (16 U.S.C. 1362(19))), but of marine mammal is maintained at or fishery activities via additional bycatch nothing in the MMPA requires the returned to its OSP. reduction measures. In other words, application of PBR outside the PBR values are calculated by NMFS as under section 118 of the MMPA, PBR management of commercial fisheries the level of annual removal from a stock does not serve as a strict cap on the interactions with marine mammals. that will allow that stock to equilibrate Nonetheless, NMFS recognizes that as operation of commercial fisheries that within OSP at least 95 percent of the a quantitative metric, PBR may be useful may incidentally take marine mammals. time, and is the product of factors in certain instances as a consideration relating to the minimum population Similarly, to the extent PBR may be when evaluating the impacts of other estimate of the stock (Nmin); the relevant when considering the impacts human-caused activities on marine productivity rate of the stock at a small of incidental take from activities other mammal stocks. Outside the commercial population size; and a recovery factor. than commercial fisheries, using it as fishing context, and in consideration of Determination of appropriate values for the sole reason to deny (or issue) all known human-caused mortality, PBR these three elements incorporates incidental take authorization for those can help inform the potential effects of significant precaution, such that activities would be inconsistent with M/SI caused by activities authorized application of the parameter to the Congress’s intent under section under 101(a)(5)(A) on marine mammal management of marine mammal stocks 101(a)(5) and the use of PBR under stocks. As noted by NMFS and the may be reasonably certain to achieve the section 118. The standard for USFWS in our implementation goals of the MMPA. For example, authorizing incidental take under regulations for the 1986 amendments to calculation of the minimum population section 101(a)(5) continues to be, among the MMPA (54 FR 40341, September 29, estimate (Nmin) incorporates the other things, whether the total taking 1989), the Services consider many precision and variability associated with will have a negligible impact on the factors, when available, in making a abundance information, while also species or stock. When Congress negligible impact determination, providing (typically the 20th percentile amended the MMPA in 1994 to add including, but not limited to, the status of a log-normal distribution of the section 118 for commercial fishing, it of the species or stock relative to OSP population estimate) reasonable did not alter the standards for (if known); whether the recruitment rate assurance that the stock size is equal to authorizing non-commercial fishing for the species or stock is increasing, or greater than the estimate (Barlow et incidental take under section 101(a)(5), decreasing, stable, or unknown; the size al., 1995). In general, the three factors implicitly acknowledging that the and distribution of the population; and are developed on a stock-specific basis negligible impact under section existing impacts and environmental in consideration of one another in order 101(a)(5) is a separate from the PBR conditions. In this multi-factor analysis, to produce conservative PBR values that metric under section 118. In fact, in PBR can be a useful indicator for when, appropriately account for both 1994, Congress also amended section and to what extent, the agency should imprecision that may be estimated as 101(a)(5)(E) (a separate provision take an especially close look at the well as potential bias stemming from governing commercial fishing incidental circumstances associated with the lack of knowledge (Wade, 1998). take for species listed under the potential mortality, along with any other

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factors that could influence annual rates clearly will not be exceeded on that OSP 95 percent of the time). Separately, of recruitment or survival. basis alone. and without reference to PBR, NMFS’ When considering PBR during Where the anticipated M/SI is near, long-standing MMPA implementing evaluation of effects of M/SI under at, or above residual PBR, consideration regulations state that take will have a section 101(a)(5)(A), we first calculate a of other factors (positive or negative), negligible impact when it does not metric for each species or stock that including those outlined above, as well adversely affect the species or stock incorporates information regarding as mitigation are especially important to through effects on annual rates of ongoing anthropogenic M/SI into the assessing whether the M/SI will have a recruitment or survival. OSP (to which PBR value (i.e., PBR minus the total negligible impact on the species or PBR is linked) is defined in the statute annual anthropogenic mortality/serious stock. PBR is a conservative metric and as a population which falls within a injury estimate), which is called not sufficiently precise to serve as an range from the population level that is ‘‘residual PBR’’ (Wood et al., 2012). We absolute predictor of population effects the largest supportable within the focus our analysis on residual PBR upon which mortality caps would ecosystem to the population level that because it incorporates anthropogenic appropriately be based. For example, in results in maximum net productivity. mortality occurring from other sources. some cases stock abundance (which is OSP is an aspirational goal of the overall We then consider how the anticipated one of three key inputs into the PBR statute and PBR is designed to ensure potential incidental M/SI from the calculation) is underestimated because minimal deviation from this overarching activities being evaluated compares to marine mammal survey data within the goal. The ‘‘negligible impact’’ residual PBR utilizing the following U.S. EEZ are used to calculate the determination and finding protects framework. abundance even when the stock range against ‘‘adverse impacts on the affected extends well beyond the U.S. EEZ. An Where a specified activity could cause species and stocks’’ when evaluating underestimate of abundance could (and NMFS is contemplating specific activities. result in an underestimate of PBR. For all these reasons, even where M/ authorizing) incidental M/SI that is less Alternatively, we sometimes may not SI exceeds residual PBR, it is still than 10 percent of residual PBR (the have complete M/SI data beyond the possible for the take to have a negligible ‘‘insignificance threshold, see below), U.S. EEZ to compare to PBR, which impact on the species or stock. While we consider M/SI from the specified could result in an overestimate of ‘‘allowing a stock to reach or maintain activities to represent an insignificant residual PBR. M/SI that exceeds PBR OSP’’ would ensure that NMFS incremental increase in ongoing may still potentially be found to be approached the negligible impact anthropogenic M/SI for the marine negligible in light of other factors that standard in a conservative and mammal stock in question that alone offset concern, especially when robust precautionary manner so that there were (i.e., in the absence of any other take) mitigation and adaptive management not ‘‘adverse effects on affected species will not adversely affect annual rates of provisions are included. or stocks,’’ it is equally clear that in recruitment and survival. As such, this This action is similar to the Navy’s some cases the time to reach this amount of M/SI would not be expected authorization under the MMPA litigated aspirational OSP could be slowed by to affect rates of recruitment or survival in Conservation Council for Hawaii v. more than 10 percent (i.e., total human- in a manner resulting in more than a National Marine Fisheries Service, 97 F. caused mortality in excess of PBR could negligible impact on the affected stock Supp.3d 1210, 1225 (D. Haw. 2015) be allowed) without adversely affecting unless there are other factors that could because both authorize mortalities of a species or stock. Another difference affect reproduction or survival, such as marine mammals. Conservation Council between the two standards is the Level A and/or Level B harassment, or for Hawaii v. National Marine Fisheries temporal scales upon which the terms considerations such as information that Service concerned a challenge to NMFS’ focus. That is, OSP contemplates the illustrates the uncertainty involved in issuance of letters of authorization to incremental, 10 percent reduction in the the calculation of PBR for some stocks. the Navy for activities in an area of the rate to approach a goal that is tens or In a prior incidental take rulemaking, Pacific Ocean known as the HSTT Study hundreds of years away. The negligible this threshold was identified as the Area, and the Court reached a different impact analysis, on the other hand, ‘‘significance threshold,’’ but it is more conclusion regarding the relationship necessitates an evaluation of annual accurately labeled an insignificance between PBR and negligible impact, rates of recruitment or survival to threshold, and so we use that stating, ‘‘[b]ecause any mortality level support the decision of whether to issue terminology here. Assuming that any that exceeds PBR will not allow the five-year regulations. additional incidental take by Level A or stock to reach or maintain its OSP, such Accordingly, while PBR is useful for Level B harassment from the activities a mortality level could not be said to evaluating the effects of M/SI in section in question would not combine with the have only a ‘negligible impact’ on the 101(a)(5)(A) determinations, it is just effects of the authorized M/SI to exceed stock.’’ As described above, the Court’s one consideration to be assessed in the negligible impact level, the statement fundamentally combination with other factors and anticipated M/SI caused by the misunderstands the two terms and should not be considered determinative. activities being evaluated would have a incorrectly indicates that these concepts The accuracy and certainty around the negligible impact on the species or (PBR and ‘‘negligible impact’’) are data that feed any PBR calculation (e.g., stock. However, M/SI above the 10 directly connected, when in fact the abundance estimates) must be percent insignificance threshold does nowhere in the MMPA is it indicated carefully considered. This approach of not indicate that the M/SI associated that these two terms are equivalent. using PBR as a trigger for concern while with the specified activities is Specifically, PBR was designed as a also considering other relevant factors approaching a level that would tool for evaluating mortality and is provides a reasonable and appropriate necessarily exceed negligible impact. defined as the number of animals that means of evaluating the effects of Rather, the 10 percent insignificance can be removed while allowing the potential mortality on rates of threshold is meant only to identify stock to reach or maintain OSP, with the recruitment and survival, while instances where additional analysis of formula for PBR designed to ensure that demonstrating that it is possible to the anticipated M/SI is not required growth towards OSP is not reduced by exceed PBR by some small amount and because the negligible impact standard more than 10 percent (or equilibrate to still make a negligible impact

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determination under section SI (e.g., MMPA 101(a)(5)(A or D) take such as commercial fishery or 101(a)(5)(A). applications and scientific research research). That is, if we relied solely on Our evaluation of the M/SI for each of permit applications). In addition, we the SAR annual M/SI values reported in the species and stocks for which looked at ongoing management actions the SARs and added the proposed M/SI mortality could occur follows. In (e.g., TRT gear restrictions) to identify take to these numbers, we would be addition, all mortality authorized for where efforts are being focused and are double-counting M/SI as some takes some of the same species or stocks over successful at reducing incidental take. were attributed to the research for the next several years pursuant to our Estuarine and Coastal Bottlenose which we are proposing to authorize final rulemakings for NEFSC has been Dolphins take. Therefore, where M/SI takes were incorporated into the residual PBR. contributed to SEFSC research, we have We first consider maximum potential For estuarine bottlenose dolphin adjusted annual M/SI values from Table incidental M/SI for each stock (Table 14 stocks, reaching our preliminary 3b above so as not to ‘‘double count’’ and 15) in consideration of NMFS’s negligible impact determination potential take. Table 14 reflects these threshold for identifying insignificant required a hard examination of the adjustments. M/SI take (10 percent of residual PBR status of each of the 7 ARA and 11 GOMRA stocks for which we propose to In the ARA, all estuarine and coastal (69 FR 43338; July 20, 2004)). By stocks for which we are proposing to considering the maximum potential authorize take. We recognize that PBR is technically undetermined for many authorize take are below the incidental M/SI in relation to residual insignificance threshold (10 percent PBR and ongoing sources of stocks because abundance data is more than eight years old. Therefore, we r-PBR) except for the Northern South anthropogenic mortality, we begin our Carolina Estuarine, Northern Georgia/ evaluation of whether the potential consulted with marine mammal experts at the SEFSC to derive best estimates of Southern South Carolina Estuarine, incremental addition of M/SI through Central Georgia Estuarine, and Southern SEFSC research activities may affect the PBR based on the available data. Overall, PBR is low (less than one Georgia Estuarine stocks (Table 14). The species’ or stock’s annual rates of latter two stocks are only slightly above recruitment or survival. We also animal) because stock sizes are generally small (tens to hundreds) in the insignificance threshold (11.76 and consider the interaction of those 10.35 percent, respectively). The mortalities with incidental taking of that southeast estuaries (with notable exceptions such as Mississippi Sound). proposed take for the Northern Georgia/ species or stock by harassment pursuant Southern South Carolina stock to the specified activity. Stock sizes are expected to be small because the abundance of a dolphin constitutes 28.57 percent of r-PBR. Negligible Impact Analysis and stock in an estuary is bounded by the Sources of anthropogenic mortality for Determinations for the SEFSC capabilities of the bays and estuarine this stock include hook and line and We methodically examined each stock systems to support that stock (i.e., crab pot/trap fisheries. The proposed M/ above the insignificance threshold to carrying capacity of the system) due to SI take (0.2/year) of the Northern South determine if the amount and degree of the residential nature of these stocks, Carolina stock is 50 percent of PBR. proposed taking would have effects to among other things. With respect to However, considering an average of one annual rates of recruitment or survival rates of annual M/SI, we note some animal every 5 years is taken in (i.e., have a negligible impact on the fisheries in the GoM (e.g., shrimp commercial fisheries (likely gillnet or population). These rates are inherently fishery) do not have full observer crab pot/trap), the proposed take and difficult to quantify for marine coverage. Estimates of take from these annual M/SI constitute 100 percent of mammals because adults of long-lived, fisheries are both extrapolated and r-PBR. The Northern South Carolina birth-pulse populations (e.g., many aggregated to the state level, making Estuarine System stock is delimited as cetaceans, polar bears and walrus) may total M/SI rates from commercial dolphins inhabiting estuarine waters not breed every year because of parental fisheries applicable to any given stock from Murrells Inlet, South Carolina, care, long gestation periods or rather than all stocks within a state not southwest to Price Inlet, South Carolina, nutritional constraints (Taylor et al., possible. the northern boundary of Charleston 1987). Therefore, we pursued a We approached the issue of outdated Estuarine System stock. The region has combination of quantitative and abundance information by working little residential, commercial, and qualitative analyses to inform our closely with SEFSC experts and have industrial development and contains the determinations. developed estimated abundance data Cape Romain National Wildlife Refuge. First we compiled data to assess the and PBR values. The resulting values As such, the stock is not facing heavy baseline population status of each stock follow the general trend of small stock anthropogenic pressure, and there are for which the SEFSC is requesting take. sizes and are very conservative in some no identified continuous indirect These data were pulled from the most cases. For example, recent abundance stressors threatening the stock. recent SARs (Hayes et al., 2017) and, surveys in Barataria Bay and Terrebonne Of the nine estuarine stocks in the where information was unknown or Bay revealed stock numbers were in the GOMRA for which we are proposing to undetermined in the SARs, we thousands compared to the previously authorize take by M/SI, three are below consulted marine mammal experts at estimated populations of approximately the insignificance threshold (10% r- the SEFSC and on TRTs to fill data gaps 200–300 animals (Hayes et al., 2018). In PBR): Terrebonne Bay/Timbalier Bay; to the best of our ability based on the addition, three stocks, including the St. Vincent Sound/Apalachicola Bay/St. best available science. Data pulled from Perdido Bay stock have population George Sound, and Apalachee Bay. The these sources include population size estimates showing zero. However, it is three coastal stocks are also below the and demographics (where known), PBR, well documented dolphins inhabit these insignificance threshold. Four stocks are known mortality and serious injury areas. We also consulted with the NMFS between 14 and 40 percent r-PBR. The from commercial and recreational Southeast Regional Office (SERO) Mississippi Sound stock is already fishing and other human-caused sources bottlenose dolphin conservation above PBR in absence of the proposed (e.g., direct shootings), stock trends (i.e., coordinator to better understand the authorization, while authorizing take in declining, stable, or increasing), threats, nature of the takes identified in the Mobile Bay would put the stock above and other sources of potential take M/ SARs M/SI values (i.e., the source of PBR (Table 14).

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TABLE 14—SUMMARY INFORMATION OF ESTUARINE AND COASTAL BOTTLENOSE DOLPHIN STOCKS RELATED TO SEFSC PROPOSED M/SI TAKE IN THE ARA, GOMRA, AND CRA

Proposed NEFSC Proposed Stock M/SI authorized M/SI 2 Stock abundance take PBR Annual M/SI take by r-PBR take/r-PBR (N ) M/SI best (%) 3 (annual) (annual)

Atlantic

Northern South Carolina Estuarine Stock ...... 1 50 0.2 1 0.4 0.2 0 0.2 100.00 Charleston Estuarine System Stock ...... 1 289 0.2 1 2.8 0.2 0 2.6 7.69 Northern Georgia/Southern South Carolina Estuarine ...... 1 250 0.2 1 2.1 1.4 0 0.7 28.57 Central Georgia Estuarine ...... 192 0.2 1.9 0.2 0 1.7 11.76 Southern Georgia Estuarine ...... 194 0.2 1.9 0 0 1.9 10.53 Jacksonville Estuarine System ...... 1 412 0.2 1 3.9 1.2 0 2.7 7.41 Florida Bay ...... 1 514 0.2 1 4.5 0 0 4.5 4.44 South Carolina/Georgia Coastal ...... 1 6,027 0.6 1 46 1.0–1.4 0 44.6–45 1.35 Northern Florida Coastal ...... 1 877 0.6 1 6 0.6 0 5.4 11.11 Central Florida Coastal ...... 1 1,218 0.6 1 9.1 0.2 0 8.9 6.74 Northern Migratory Coastal ...... 6,639 0.6 48 6.1–13.2 1.6 33.2–43.5 0.4–0.6 Southern Migratory Coastal ...... 3,751 0.6 23 14.3 1.6 7.1 8.45

Gulf of Mexico

Terrebonne Bay, Timbalier Bay ...... 3,870 0.2 27 0.2 0 26.8 0.75 Mississippi River Delta ...... 332 0.2 1.4 4 0 0 1.4 14.29 Mississippi Sound, Lake Borgne, Bay Boudreau 5 ...... 3,046 .02 (M/SI), 23 310 0 ¥281 Neg. 0.2 (Level A) Mobile Bay, Bonsecour Bay ...... 122 0.2 1 0.9 5 0.8 0 0.1 Neg. St. Andrew Bay ...... 124 0.2 1 0.9 0.2 0 0.7 28.57 St. Joseph Bay ...... 152 0.2 1.41 0.4 0 1.01 19.80 St. Vincent Sound, Apalachicola Bay, St. George Sound ...... 439 0.2 1 3.91 0 0 3.91 5.12 Apalachee Bay ...... 491 0.2 1 3.61 0 0 3.61 5.54 Waccasassa Bay, Withlacoochee Bay, Crystal Bay ...... 1 100 0.2 1 0.5 0 0 0.5 40.00 Northern Gulf of Mexico Western Coastal Stock ...... 20,161 0.6 175 0.6 0 174.4 0.34 Northern Gulf of Mexico Northern Coastal Stock ...... 7,185 0.6 60 0.4 0 59.6 1.01 Northern Gulf of Mexico Eastern Coastal Stock ...... 12,388 0.6 111 1.6 0 109.4 0.55 1 For many estuarine stocks, the draft 2018 SAR has unknown abundance estimates and undetermined PBRs. Where this occurred, we used either the most recent estimates (even if more than 8 years old) or we consulted with SEFSC marine mammal experts for best judgement (pers. comm., K. Mullin). 2 r-BPR = PBR ¥ (annual M/I + NEFSC authorized take). For example, for the southern migratory coastal stock r-PBR = 23 ¥ (14.3 + 1.6). 3 Values in the column reflect what the proposed take represents as a percentage of r-PBR. The insignificance threshold is 10 percent. 4 The annual M/SI in the draft 2018 SAR is 0.2 for the Mississippi River stock; however, the takes considered were from gillnet fishery research; therefore, we re- duced M/SI to 0. 5 The annual M/SI in the draft 2018 SAR is 1.0; however, one take used in those calculations is from fisheries research for which we propose to authorize take; therefore, we reduced M/SI to 0.8.

For the Mississippi Sound stock, we model to the Mississippi Sound stock, abundance estimate of 122 animals for evaluated various aspects of stock we should begin to see the population Mobile Bay is based on aerial survey status. According to this stock’s 2017 recover during the life of the proposed data collected during September SAR, the mean annual fishery-related regulations. We note the three research- through October in 1992 and 1993 with mortality and serious injury during related mortalities discussed in the 2017 16 percent of animals observed in bay 2012–2015 for observed fisheries and SAR for this stock are from the specified (Blaylock and Hoggard, 1994). Sounds strandings and at-sea observations activities for which we are now and estuaries were eliminated from the identified as fishery-caused related is proposing to authorize take. Therefore, analysis. Murky water in GoM estuaries 1.0. Additional mean annual mortality the proposed take would not be in and dark, grey animals makes it very and serious injury during 2011–2015 addition to but would account for these difficult to detect dolphins from aerial due to other human-caused actions research-related takes. surveys. Further, Mobile Bay is a large (fishery research, sea turtle relocation Our proposal to authorize one M/SI estuarine system (approximately 456 trawling, gunshot wounds, and DWH oil take from the Mobile Bay stock over 5 km2), similar in size to Barataria Bay spill) is 309 with the majority sourced years would result in the stock being where the population estimate is over from DWH. Projected annual M/SI over above r-PBR. The known takes of this 2,000 animals based on vessel-based the next five years from commercial stock includes one mortality in blue surveys. Therefore, it is reasonable to fishing and DWH are 6 and 1539, crab trap/pot gear in 2015, one mortality assume the population of dolphin in respectively. Management and research in stranding data where cause of death Mobile Bay and other places, such as actions, including ongoing health could not be determined and the animal Perdido Bay, are higher than estimated assessments and Natural Resource could have been from the Northern in old surveys using aerial observations. Damage Plan efforts designed to restore Coastal stock, and one SI interaction in Looking beyond the quantitative injury to the stock, are anticipated to 2016. As with other estuarine stocks abundance and PBR data, we also improve the status of the stock moving where abundance data is severely considered non-quantitative factors to forward. Further, marine mammal outdated, the population estimate is determine the effects of the proposed population modeling indicates Barataria small compared to other estuarine authorization on estuarine dolphin Bay dolphin should begin recovery nine stocks more recently and thoroughly stocks in the ARA and GOMRA. years post spill (NRDA Trustees, 2016; studied. This could be a result of We consider qualitative information DWH MMIQT 2015). Applying that sampling methods. For example, the such as population dynamics and

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context to determine if the proposed considered a well-studied population, bottlenose dolphin stocks are facing amount of take of estuarine and coastal the Sarasota Bay stock, as a proxy for anthropogenic stressors such as bottlenose dolphins in the ARA and assessing population dynamics of other commercial and recreational fishing, GOMRA would have a negligible impact estuarine stocks throughout the ARA coastal development, habitat on annual rates of survival and and GOMRA. The Sarasota Bay stock is degradation (e.g., oil spills, harmful reproduction. Marine mammals are the most data rich population of algal blooms), and directed violence K-selected species, meaning they have bottlenose dolphins in the United (intentional killing/injury) and have few offspring, long gestation and States. The Sarasota Bay Research some level of annual M/SI. NOAA, parental care periods, and reach sexual Program (SBRP) possesses 40 years of including the SEFSC, is dedicated to maturity later in life. Therefore, between data on the resident dolphin population. reducing fishery take, both in years, reproduction rates vary based on Research topics include, but are not commercial fisheries and research age and sex class ratios. As such, limited to, population structure and surveys. For example, the Atlantic population dynamics is a driver when dynamics, health and physiology, and BDTRT is in place to decrease M/SI in looking at reproduction rates. We focus human interaction and impacts. commercial fisheries and scientists at on reproduction here because we The Sarasota Bay stock demonstrates NOAA’s National Center for Coastal conservatively consider inter-stock high recruitment and survival rates. Ocean Science (NCCOS) in Charleston, reproduction is the primary means of Wells et al. (2014) found 83 percent (95 South Carolina, are undertaking recruitment for these stocks. We note percent CI = 0.52 to 0.99) of detected research and working with local this is a conservative assumption, as pregnancies were documented as fishermen to reduce crab pot/trap and some individuals are known to travel, resulting in live births. Eight of the 10 trawling entanglement (e.g., McFee et and there is some mixing between the calves (80 percent) resulting from al., 2006, 2007; Greenman and McFee, estuarine stocks and adjacent coastal documented pregnancies survived 2014). In addition, through this stocks (Hayes et al, 2017). Given through the calendar year of their birth rulemaking, the SEFSC has invested in reproduction is the primary means of and, therefore, were considered to have developing measures that may be recruitment and females play a been successfully recruited into the adopted by commercial fisheries to significantly larger role in their Sarasota Bay bottlenose dolphin reduce bycatch rates, thereby decreasing offspring’s reproductive success (also population. This value compares the rate of fishing-related M/SI. For known as Bateman’s Principle), the favorably with the 81 percent first year example, in 2017, the SEFSC executed mortality of females rather than males survival reported by Wells & Scott the previously described Lazy Line is, in general, more likely to influence (1990) for Sarasota Bay bottlenose Modification Mitigation Work Plan (see recruitment rate. Several studies have dolphins. Thus, approximately 66 Potential Effects section) and the SEFSC purported that male bottlenose dolphins percent of documented pregnancies led is investigating the feasibility of are more likely to engage in depredation to successful recruitment. Mann et al. applying gear modifications to select or related behaviors with trawls and (2000) found dolphin interbirth research trawl surveys. Also as a result recreational fishing (Corkeron et al., intervals for surviving calves are of this rulemaking process, the SEFSC 1990; Powell & Wells, 2011) or become between 3 and 6.2 years, resulting in has a heightened awareness of the risk entangled in gear (Reynolds et al., 2000; annual variability in reproductive rates. of take and a commitment to not only Adimey et al., 2014). Male bias has also With respect to survival, Wells and implement the mitigation measures Scott (1990) calculated a mean annual been reported for strandings with proposed in this rulemaking but to survival rate of Sarasota Bay dolphins at evidence of fishery interaction (Stolen et develop additional mitigation measures 96.2 percent. In comparison, a mark- al., 2007; Fruet et al., 2012; Adimey et beyond this rule they find effective and recapture study of dolphins near al., 2014) and for in situ observations of practicable. Because all NMFS Science Charleston, South Carolina reported an fishery interaction (Corkeron et al., Centers are dedicated to decreasing gear apparent annual survival rate of 95.1 1990; Finn et al., 2008; Powell & Wells, interaction risk, each Science Center is percent (95 percent CI: 88.2–100) 2011). Byrd and Hohn (2017) examined also committed to sharing information (Speakman et al., 2010). In summary, stranding data to determine whether about reducing marine mammal survival rate and reproductive success there was differential risk of bycatch bycatch, further educating fishery of the Sarasota Bay stock is high and, researchers on means by which is make based on sex and age class from gillnet except for those stocks for which we fisheries in North Carolina. They found know individual marine mammal health best professional judgements and more males than females stranded. and reproductive success are minimize risk of take. However, the relative gillnet bycatch compromised from the Deepwater Region-wide, Gulf of Mexico states, in risk was not different for males and Horizon oil spill (e.g., Mississippi coordination with Federal agencies, are females. In summary, these data suggest Sound stock), we consider estuarine taking action to recover from injury the risk of gear interaction from trawls bottlenose stocks in the ARA and sustained during the DWH spill. Funds and hook and line is likely higher for GOMRA to have similar rates of from the spill have been allocated males while gillnet interactions may recruitment and survival. specifically for marine mammal pose equal risk for males and females. For stocks that are known to be restoration to the Florida, Alabama, For this rulemaking, the majority of experiencing levels of stress from Mississippi, Louisiana, Texas, Open historical gear interactions are from fishing and other anthropogenic sources Ocean, and Region-wide Trustee trawls. Therefore, we believe males (e.g.., annual rates of human-caused Implementation Groups (TIGs). In June (which are less likely to influence mortality and serious injury reach or 2017, the Trustees released their recruitment rate) are more likely at risk exceed PBR levels in absence of the Strategic Framework for Marine than females. requested take from the SEFSC), we look Mammal Restoration Activities. The Understanding the population toward the ongoing management actions framework includes a number of marine dynamics of each bottlenose dolphin and research designed to reduce those mammal restoration goals which would stock considered in this rulemaking is pressures when considering our improve marine mammal populations not possible as the data simply do not preliminary negligible impact over the course of the proposed exist for each stock. Therefore, we determination. Overall, many estuarine regulations. These goals include, but are

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not limited to, (1) collecting and using illegal feeding and harassment, and Offshore Pelagic Stocks monitoring information, such as hook-and-line fishery interactions. The For all offshore pelagic stocks where population and health assessments, and Alabama TIG has made the most PBR is known, except for gray seal, the spatiotemporal distribution information; progress on executing this strategic level of taking is less than 10 percent of (2) implementing an integrated portfolio framework. In 2018, the Alabama TIG r-PBR after considering other sources of of restoration approaches to restore committed to three projects designed to human-caused mortality (Table 15). injured bay, sound, and estuarine (BSE); restore marine mammals: (1) Enhancing Again, for those stocks with total coastal; shelf; and oceanic marine Capacity for the Alabama Marine incidental M/SI less than the mammals across the diverse habitats Mammal Stranding Network; (2) significance threshold (i.e., ten percent and geographic ranges they occupy; (3) Assessment of Alabama Estuarine of residual PBR), we consider the effects identifying and implementing actions Bottlenose Dolphin Populations & of the specified activity to represent an that support ecological needs of the Health (including the Mobile Bay stock); insignificant incremental increase in stocks; (4) improving resilience to and (3) Alabama Estuarine Bottlenose ongoing anthropogenic M/SI and need natural stressors; and (5) addressing Dolphin Protection: Enhancement & not consider other factors in making a direct human-caused threats such as Education. negligible impact determination except bycatch in commercial fisheries, vessel in combination with additional collisions, noise, industrial activities, incidental take by acoustic harassment. TABLE 15—SUMMARY INFORMATION OF PELAGIC STOCKS RELATED TO PROPOSED M/SI TAKE TO THE SEFSC IN THE ARA, GOMRA, AND CRA

NEFSC Proposed authorized Proposed Species Stock M/SI take PBR Annual M/SI take by r-PBR MI/SI take/r- (annual) (SAR) M/SI PBR (annual) (%)

Risso’s dolphin ...... Western North Atlantic ...... 0.2 126 49.9 0.6 75.5 0.26 N Gulf of Mexico ...... 0.2 16 7.9 0 8.1 2.47 Puerto Rico/USVI ...... 0.2 15 0.5 0 14.5 1.38 Melon headed whale ...... N Gulf of Mexico ...... 0.6 13 0 0 13 4.62 Short-finned pilot whale ...... Western North Atlantic ...... 0.2 236 168 0 68 0.29 N Gulf of Mexico ...... 0.2 15 0.5 0 14.5 1.38 Puerto Rico/USVI...... 0.2 unk unk 0 unk unk Common dolphin ...... Western North Atlantic ...... 0.8 557 406 1.4 149.6 0.53 Atlantic spotted dolphin ...... Western North Atlantic ...... 0.8 316 0 0.4 315.6 0.25 N Gulf of Mexico ...... 0.8 undet 42 0 unk unk Puerto Rico/USVI...... 0.2 unk unk 0 unk unk Pantropical spotted dolphin ...... Western North Atlantic ...... 0.2 17 0 0 17 1.18 N Gulf of Mexico ...... 0.8 407 4.4 0 402.6 0.20 Striped dolphin ...... Western North Atlantic ...... 0.6 428 0 0 428 0.14 N Gulf of Mexico ...... 0.6 10 0 0 10 6.00 Spinner dolphin ...... Western North Atlantic ...... 0 unk 0 0 unk ...... N Gulf of Mexico ...... 0.6 62 0 0 62 0 Puerto Rico/USVI...... 0 unk unk 0 unk 0 Rough-toothed dolphin ...... Western North Atlantic ...... 0 1.3 0 0 1.3 0 N Gulf of Mexico ...... 0.2 3 0.8 0 2.2 9.09 Bottlenose dolphin ...... Western North Atlantic Offshore ...... 0.8 561 39.4 1.6 520 0.15 N Gulf of Mexico Oceanic ...... 0.8 60 0.4 0 59.6 1.34 N Gulf of Mexico Continental Shelf .. 0.8 469 0.8 0 468.2 0.17 Puerto Rico/USVI ...... 0.2 unk 0 0 unk unk Harbor porpoise ...... Gulf of Maine/Bay of Fundy ...... 0.2 706 437 0 269 0.07 Unidentified delphinid ...... Western North Atlantic ...... 0.2 — — 0.6 n/a n/a N Gulf of Mexico ...... 0.2 — — 0 n/a n/a Puerto Rico/USVI ...... 0.2 — — 0 n/a n/a Harbor seal ...... Western North Atlantic ...... 0.2 2,006 389 12 1,605 0.01 Gray seal ...... Western North Atlantic ...... 0.2 1,389 5,688 ¥4,299 N/A

Gray seals are the only stock where, annual M/SI for the U.S. population is when it has been documented that some at first look, annual M/SI is above PBR 878. That equates to an r-PBR of 511. gear interactions may result in Level A (Table 15). However, the minimum Considering the SEFSC is requesting harassment (injury) or no injury at all, abundance estimate provided in the one take, by M/SI, of gray seal over 5 as serious injury determinations are not SAR is based on the U.S. population years (or 0.2 animals per year), this made in all cases where the disposition estimate of 23,158 and does not include results in a percentage of 0.003, well of the animal is ‘‘released alive’’ and, in the Canada population. The total under the 10 percent insignificance some cases, animals are disentangled estimated Canadian gray seal population threshold. Further, given the proposed from nets without any injury in 2016 was estimated to be 424,300 M/SI of one animal over five years, this observations (e.g., no wounds, no blood (95% CI=263,600 to 578,300) (DFO amount of take can be considered in water, etc). discountable given the large population 2017). This would be acceptable except Level B Take From Acoustic Sources that the annual M/SI rate of 5,688 size. includes M/SI from both the U.S. and We note that for all stocks, we have As described in greater depth Canada populations. Therefore, we conservatively considered in this previously (see ‘‘Acoustic Effects’’), we should compare population to analysis that any gear interaction would do not believe that SEFSC use of active population. The draft 2018 indicates the result in mortality or serious injury acoustic sources has the likely potential

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to result in Level A harassment, serious individuals would be very unlikely. For Based on the analysis contained injury, or mortality. In addition, for the these reasons, we do not consider the herein of the likely effects of the majority of species, the proposed annual proposed level of take by acoustic specified activity on marine mammals take by Level B harassment is very low disturbance to represent a significant and their habitat, and taking into in relation to the population abundance additional population stressor when consideration the implementation of the estimate (less than one percent). We considered in context with the proposed proposed monitoring and mitigation have produced what we believe to be level of take by M/SI for any species. measures, NMFS preliminarily finds precautionary estimates of potential Further, we note no take by harassment that the total marine mammal take from incidents of Level B harassment (Table is proposed for estuarine bottlenose SEFSC fisheries research activities will 13). The procedure for producing these dolphins; therefore, only M/SI is have a negligible impact on affected estimates, described in detail in incorporated into our negligible impact marine mammal species or stocks. ‘‘Estimated Take Due to Acoustic analysis for those stocks. For Level B Negligible Impact Analysis and Harassment,’’ represents NMFS’ best take of coastal stocks in both the ARA Determination—TPWD effort towards balancing the need to and GOMRA, it is not possible to quantify the potential for occurrence of quantify take per stock given overlap in Similar to the SEFSC approach of Level B harassment due to production of time and space. However, we consider considering the proposed M/SI take underwater sound with a general lack of the anticipated amount of take to have relative to r-PBR, we looked at known information related to the specific way the potential to occur from some M/SI as identified in the SARs that these acoustic signals, which are combination of coastal stocks. (excluding those from the proposed generally highly directional and TPWD surveys) to estimate annual rates Summary of Negligible Impact transient, interact with the physical of M/SI (Table 16). No Level B Determination for SEFSC environment and to a meaningful harassment of estuarine bottlenose understanding of marine mammal dolphins is proposed to be authorized to In summary, we consider the the TPWD; therefore, our analysis is perception of these signals and proposed authorization would not occurrence in the areas where the limited to take by M/SI. impact annual rates or recruitment or The stocks for which we propose to SEFSC operates. The sources considered survival on any of the stocks considered authorize take by TPWD are grouped in here have moderate to high output here because: (1) The possibility of the Gulf of Mexico BSE SAR. frequencies (10 to 180 kHz), generally injury, serious injury, or mortality from Abundance data show all but 2 of the short ping durations, and are typically the use of active acoustic devices may 27 stocks grouped into the SAR are focused (highly directional with narrow reasonably be considered discountable; more than 8 years old and, therefore, beam width) to serve their intended (2) the anticipated incidents of Level B PBR is undetermined. Similar to the purpose of mapping specific objects, harassment from the use of active SEFSC, we consulted marine mammal depths, or environmental features. In acoustic devices consist of, at worst, experts at the SEFSC to derive addition, some of these sources can be temporary and relatively minor abundance and PBRs for all stocks. operated in different output modes (e.g., modifications in behavior; (3) the Similar to other areas in the Gulf, energy can be distributed among predicted number of incidents of annual rates of BSE dolphin M/SI are multiple output beams) that may lessen potential mortality are at insignificant aggregated for the entire state of Texas the likelihood of perception by and levels (i.e., below ten percent of residual (which contains seven stocks) in the potential impacts on marine mammals PBR) for select stocks; (4) consideration Gulf of Mexico BSE SAR. Therefore, we in comparison with the quantitative of more detailed data for gray seals do again used information, where available, estimates that guide our proposed take not reveal cause for concern; (5) for for each stock from the SAR and authorization. stocks above the insignificance Southeast Marine Mammal Stranding As described previously, there is threshold, the loss of one animal over Database to calculate but are described some minimal potential for temporary five years, especially if it is male (the in text for each of the sources of M/SI effects to hearing capabilities within sex more likely to interact with trawls), (e.g. hook and line, crab pot fishery). specific frequency ranges for select is not likely to contribute to measurable Two stocks are positively identified in marine mammals, but most effects changes in annual rates of recruitment the 2016 SAR (Hayes et al., 2017) as would likely be limited to temporary or survival; (7) some stocks are subject to fishing pressure (other than behavioral disturbance. If individuals subjected to ongoing management gillnet research for which we are are in close proximity to active acoustic actions designed to improve stock proposing take): The Copano Bay/ sources they may temporarily increase understanding and reduce sources of M/ Aransas Bay/San Antonio Bay/Redfish swimming speeds (presumably SI from other anthropogenic stressors Bay/Espiritu Santo Bay stock and the swimming away from the source) and (e.g., BDTRT management actions, Nueces Bay/Corpus Christi Bay stock. surface time or decrease foraging effort pelagic longline TRT); (8) the efforts by For the first stock, in 2010, a calf was (if such activity were occurring). These the DHW Trustees are designed to disentangled by stranding network reactions are considered to be of low restore for injury and address ongoing personnel from a crab trap line wrapped severity due to the short duration of the stressors such as commercial fishery around its peduncle. The animal swam reaction. Individuals may move away entanglement which would improve away with no obvious injuries but was from the source if disturbed. However, stock conditions; (9) implementation of considered seriously injured because it because the source is itself moving and this proposed rule would build upon is unknown whether it was reunited because of the directional nature of the research designed to reduce fishery with its mother (Maze-Foley and sources considered here, it is unlikely related mortality (e.g., NCCOS crap pot/ Garrison, 2016). Hayes et al. (2016) also any temporary displacement from areas trap and trawl interaction research; HSU notes hook and line fisheries have taken of significance would occur, and any lazy line research); and (10) the animals from this stock; however, the disturbance would be of short duration. presumed efficacy of the planned exact number of animals is not In addition, because the SEFSC survey mitigation measures in reducing the provided. Therefore, we used the effort is widely dispersed in space and effects of the specified activity to the Marine Mammal Stranding Database for time, repeated exposures of the same level of least practicable adverse impact. more information on these takes and the

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Nueces Bay stock because they were animal was a serious injury and two one animal was taken by mortality in implicated in the hook and line takes. were mortality from hook and line 2010 and one in 2013 from hook and For the Copano Bay et al. stock, one interaction. For the Nueces Bay stock, line interaction. TABLE 16—SUMMARY INFORMATION OF ESTUARINE BOTTLENOSE DOLPHIN STOCKS RELATED TO TPWD GILLNET FISHERY SURVEYS

Proposed Stock Proposed Estimated Residual Stock abundance M/SI take PBR 1 annual take/R–PBR PBR 3 (Nbest) 1 (annual) M/SI 2 (%)

Laguna Madre ...... 80 0.2 0.3 0 0.3 66.67 Nueces Bay, Corpus Christi Bay 4 ...... 150 0.2 1.3 0.4 0.9 22.22 Copano Bay, Aransas Bay, San Antonio Bay, Redfish Bay, Espiritu Santo Bay 5 ...... 250 0.2 2.1 0.8 0.9 22.2 Matagorda Bay, Tres Palacios Bay, Lavaca Bay 6 ...... 150 0.2 1.3 0 1.1 18.18 1 In all cases, population estimates for these stocks are greater than 8 years old (last survey year was 1992); therefore, abundance and PBR are unknown. We so- licited expert opinion of the SEFSC to gather the best available data to generate a population estimate for each stock and then calculated PBR using the estimated Nbest. 2 The estimated annual M/SI reflects the estimated M/SI less the takes for which M/SI take authorization is now proposed (i.e., it does not include historical takes from TPWD gillnet fishing). Annual M/SI was derived from the SAR and consulting the NMFS Southeast Marine Mammal Stranding database. 3 Residual PBR (r-PBR) = PBR—annual M/SI. No other M/SI is authorized for Texas BSE dolphin stocks. 4 The SEFSC conducted stock structure research (biopsy sampling surveys) from 2012–2014. During the biopsy sampling, photos were taken for photo-ID and 285 individual dolphins with distinct dorsal fins were identified within this stock boundaries (NMFS SEFSC, UNPUBLISHED DATA). The Nbest and PBR values reflect these data. 5 The SEFSC conducted stock structure research (biopsy sampling surveys) from 2012–2014. During the biopsy sampling, photos were taken for photo-ID and 524 individual dolphins with distinct dorsal fins were identified within this stock boundaries (NMFS SEFSC, UNPUBLISHED DATA). The Nbest and PBR values reflect these data. 6 The SEFSC conducted stock structure research (biopsy sampling surveys) from 2012–2014. During the biopsy sampling, photos were taken for photo-ID and 323 individual dolphins with distinct dorsal fins were identified within this stock boundaries (NMFS SEFSC, UNPUBLISHED DATA). The Nbest and PBR values reflect these data.

The proposed take exceeds the are not discretely closed populations in practice, where estimated numbers insignificance threshold (10 percent r- with few animals migrating to and from are available, NMFS compares the PBR) for all four Texas stocks. However, coastal areas and adjacent waterbodies. number of individuals taken to the most it does not exceed r-PBR when The loss of one animal over 5 years is appropriate estimation of abundance of considering other sources of M/SI for unlikely to result in more than a the relevant species or stock in our any stock. For two stocks (Laguna negligible impact to the stock’s determination of whether an Madre and Matagorda Bay, Tres Palacios recruitment and survival rates. authorization is limited to small Bay, Lavaca Bay), there is no other Based on the analysis contained numbers of marine mammals. known source of M/SI according to the herein of the likely effects of the Additionally, other qualitative factors SAR. The driving factor behind the specified activity on marine mammals may be considered in the analysis, such higher percentages of r-PBR is the small and their habitat, and taking into as the temporal or spatial scale of the stock size which results in a low PBR. consideration the implementation of the activities. For example, the Laguna Madre stocks proposed monitoring and mitigation Small Numbers Analysis—SEFSC has a population estimate of 80 measures, NMFS preliminarily finds individuals resulting in low PBR (0.3). that the total marine mammal take from The total amount of take proposed for This is a similar scenario to some of the TPWD’s gillnet fishing surveys will all estuarine and coastal bottlenose estuarine stocks for which we propose have a negligible impact on affected dolphin stocks is less than one percent to issue take to the SEFSC. TPWD marine mammal species or stocks. of each estuarine stock and less than 12 would implement mitigation designed percent of all coastal stocks (Table 17; to reduce the potential for take, Small Numbers we note this 12 percent is including research investigating the As noted above, only small numbers conservatively high because it considers effectiveness of reducing gaps between of incidental take may be authorized that all Level B take would come from the lead lines and net. Further, as under Section 101(a)(5)(D) of the MMPA any given single stock). For pelagic discussed earlier, dolphins are K- for specified activities other than stocks, the total amount of take is less selected species with variable military readiness activities. The MMPA than 13 percent of the estimated reproductive rates, and estuarine stocks does not define small numbers and so, population size (Table 18).

TABLE 17—AMOUNT OF PROPOSED TAKING OF ESTUARINE AND COASTAL BOTTLENOSE DOLPHIN STOCKS IN THE ARA AND GOMRA RELATED TO STOCK ABUNDANCE

Stock Stock abundance Proposed Proposed M/SI Proposed take (Nbest) level B Take take (annual) % population

Atlantic

Northern South Carolina Estuarine Stock 1 ...... 50 0 0.2 0.40 Charleston Estuarine System Stock 1 ...... 289 0.2 0.07 Northern Georgia/Southern South Carolina Estuarine System Stock 1 ...... 250 0.2 0.08 Central Georgia Estuarine System ...... 192 0.2 0.10 Southern Georgia Estuarine System Stock ...... 194 0.2 0.10 Jacksonville Estuarine System Stock 1 ...... 412 0.2 0.05 Florida Bay Stock 1 ...... 514 0.2 0.04

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TABLE 17—AMOUNT OF PROPOSED TAKING OF ESTUARINE AND COASTAL BOTTLENOSE DOLPHIN STOCKS IN THE ARA AND GOMRA RELATED TO STOCK ABUNDANCE—Continued

Stock Stock abundance Proposed Proposed M/SI Proposed take (Nbest) level B Take take (annual) % population

South Carolina/Georgia Coastal Stock ...... 6,027 0.6 0.01 Northern Florida Coastal Stock ...... 877 110 0.6 12.61 Central Florida Coastal Stock ...... 1,218 0.6 9.08 Northern Migratory Coastal Stock ...... 6,639 0.6 1.67 Southern Migratory Coastal Stock ...... 3,751 0.6 2.95

Gulf of Mexico

Terrebonne Bay, Timbalier Bay 1 ...... 100 0 0.2 0.20 Mississippi River Delta 1 ...... 332 0.2 0.06 Mississippi Sound, Lake Borgne, Bay Boudreau 3 ...... 3,046 0.2 (M/SI), 0.2 0.01 (Level A) Mobile Bay, Bonsecour Bay 1 ...... 122 0.2 0.16 St. Andrew Bay 1 ...... 124 0.2 0.16 St. Joseph Bay ...... 152 0.2 0.13 St. Vincent Sound, Apalachicola Bay, St. George Sound 1 ...... 439 0.2 0.05 Apalachee Bay 1 ...... 491 0.2 0.04 Waccasassa Bay, Withlacoochee Bay, Crystal Bay 1 ...... 100 0.2 0.20 Northern Gulf of Mexico Western Coastal Stock ...... 20,161 350 0.6 1.74 Northern Gulf of Mexico Northern Coastal Stock ...... 7,185 0.6 4.88 Northern Gulf of Mexico Eastern Coastal Stock ...... 12,388 0.6 2.83

TABLE 18—AMOUNT OF PROPOSED TAKING OF PELAGIC STOCKS IN THE ARA, GOMRA, AND CRA TO THE SEFSC RELATED TO STOCK ABUNDANCE

Total Abundance Proposed Proposed proposed Species Stock (Nbest) level B take M/SI take take % (annual) (annual) population

N Atlantic right whale ...... Western North Atlantic ...... 451 4 0 0.89 Fin whale ...... Western North Atlantic ...... 1,618 4 0 0.25 Sei whale ...... Western North Atlantic ...... 357 4 0 1.12 Humpback whale ...... Gulf of Maine ...... 896 4 0 0.45 Minke whale ...... Western North Atlantic ...... 2,591 4 0 0.15 Bryde’s whale ...... Northern Gulf of Mexico ...... 33 4 0 12.12 Sperm whale ...... North Atlantic ...... 2,288 4 0 0.17 Northern Gulf of Mexico ...... 763 17 0 2.23 Puerto Rico/USVI ...... unk 4 0 unk Risso’s dolphin ...... Western North Atlantic ...... 18,250 15 0.2 0.08 N Gulf of Mexico ...... 2,442 10 0.2 0.42 Puerto Rico/USVI ...... 21,515 10 0.2 0.05 Kogia ...... Western North Atlantic ...... 3,785 10 0 0.26 N Gulf of Mexico ...... 186 12 0 6.45 Beaked whales ...... Western North Atlantic ...... 7,092 9 0 0.13 N Gulf of Mexico ...... 149 8 0 5.37 Melon headed whale ...... N Gulf of Mexico ...... 2,235 100 0.6 4.50 Short-finned pilot whale ...... Western North Atlantic ...... 28,924 48 0.2 0.17 N Gulf of Mexico ...... 2,415 25 0.2 1.04 Puerto Rico/USVI ...... unk 20 0.2 unk Common dolphin ...... Western North Atlantic ...... 70,184 268 0.8 0.38 Atlantic spotted dolphin ...... Western North Atlantic ...... 44,715 37 0.8 0.08 N Gulf of Mexico ...... unk 198 0.8 unk Puerto Rico/USVI ...... unk 50 0.2 unk Pantropical spotted dolphin ...... Western North Atlantic ...... 3,333 78 0.2 2.35 N Gulf of Mexico ...... 50,807 203 0.8 0.40 Striped dolphin ...... Western North Atlantic ...... 54,807 75 0.6 0.14 N Gulf of Mexico ...... 1,849 46 0.6 2.52 Spinner dolphin ...... Western North Atlantic ...... unk 100 0 unk N Gulf of Mexico ...... 11,441 200 0.6 1.75 Puerto Rico/USVI ...... unk 50 0 unk Rough-toothed dolphin ...... Western North Atlantic ...... 136 10 0 7.35 N Gulf of Mexico ...... 624 20 0.2 3.24 Bottlenose dolphin ...... Western North Atlantic Offshore ...... 77,532 39 0.8 0.05 N Gulf of Mexico Oceanic ...... 5,806 100 0.8 1.74 N Gulf of Mexico Continental Shelf ...... 51,192 350 0.8 0.69 Puerto Rico/USVI ...... unk 50 0.2 unk Harbor porpoise ...... Gulf of Maine/Bay of Fundy ...... 79,833 0 0.2 0.00

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TABLE 18—AMOUNT OF PROPOSED TAKING OF PELAGIC STOCKS IN THE ARA, GOMRA, AND CRA TO THE SEFSC RELATED TO STOCK ABUNDANCE—Continued

Total Abundance Proposed Proposed proposed Species Stock (Nbest) level B take M/SI take take % (annual) (annual) population

Unidentified delphinid ...... Western North Atlantic. n/a 0 0.2 n/a N Gulf of Mexico 0.2 Puerto Rico/USVI 0.2 Harbor seal ...... Western North Atlantic ...... 75,834 0 0.2 0.00 Gray seal ...... Western North Atlantic ...... 27,131 0 0.2 0.00

The majority of stocks would see take NMFS preliminarily finds that small the relevant species or stock in our less than 5 percent of the population numbers of marine mammals will be determination of whether an taken with the greatest percentage being taken relative to the population size of authorization is limited to small 12 from Bryde’s whales in the Gulf of the affected species or stocks. numbers of marine mammals. Mexico. However, this is assuming all Additionally, other qualitative factors Small Numbers Analysis—TPWD takes came from the same stock of may be considered in the analysis, such beaked whales which is unlikely. Where As noted above, only small numbers as the temporal or spatial scale of the stock numbers are unknown, we would of incidental take may be authorized activities. expect a similar small amount of take under Section 101(a)(5)(A) of the MMPA Table 19 provides information relative to population sizes. for specified activities. The MMPA does relating to this small numbers analysis Based on the analysis contained not define small numbers and so, in for the proposed authorization to herein of the proposed activity practice, where estimated numbers are TPWD. The total annual amount of (including the proposed mitigation and available, NMFS compares the number taking proposed for authorization is less monitoring measures) and the of individuals taken to the most than one percent for affected Texas anticipated take of marine mammals, appropriate estimation of abundance of estuarine dolphin stocks.

TABLE 19—AMOUNT OF PROPOSED TAKING OF TEXAS BOTTLENOSE DOLPHIN STOCKS RELATIVE TO STOCK ABUNDANCE

Proposed Proposed Stock Abundance M/SI take take % (Nbest) (annual) Population

Laguna Madre 4 ...... 80 0.2 0.25 Nueces Bay, Corpus Christi Bay 5 ...... 150 0.2 0.13 Copano Bay, Aransas Bay, San Antonio Bay, Redfish Bay, Espirtu Santo Bay 6 ...... 250 0.2 0.08 Matagorda Bay, Tres Palacios Bay, Lavaca Bay 7 ...... 150 0.2 0.13

Based on the analysis contained operations contain an adaptive and dolphin-gear interactions, new herein of the proposed activity management component which is both stock data, and coordination efforts (including the proposed mitigation and valuable and necessary within the between all NMFS Fisheries Science monitoring measures) and the context of five-year regulations for Centers. Mitigation measures could be anticipated take of marine mammals, activities that have been associated with modified if new data suggest that such NMFS preliminarily finds that small marine mammal mortality. The use of modifications would have a reasonable numbers of marine mammals will be adaptive management allows OPR to likelihood of reducing adverse effects to taken relative to the population size of consider new information from different marine mammals and if the measures the affected species or stocks. sources to determine (with input from are practicable. In addition, any M/SI takes by the SEFSC or TPWD and Unmitigable Adverse Impact Analysis the SEFSC and TPWD regarding affiliates are required to be submitted and Determination practicability) on an annual or biennial basis if mitigation or monitoring within 48 hours to the PSIT database There are no relevant subsistence uses measures should be modified (including and OPR will be made aware of the take. of the affected marine mammal stocks or additions or deletions). The If there is an immediate need to revisit species implicated by the issuance of coordination and reporting monitoring and mitigation measures regulations to the SEFSC or TPWD. requirements in this proposed rule are based on any given take, OPR and Therefore, NMFS has determined that designed to provide OPR with data to SEFSC or TPWD would meet as needed. the total taking of affected species or allow consideration of whether any The following are some of the stocks would not have an unmitigable changes to mitigation and monitoring is possible sources of applicable data to be adverse impact on the availability of necessary. OPR and the SEFSC or TPWD considered through the adaptive such species or stocks for taking for will meet annually to discuss the management process: (1) Results from subsistence purposes. monitoring reports and current science monitoring reports, as required by and whether mitigation or monitoring MMPA authorization; (2) results from Adaptive Management modifications are appropriate. Decisions general marine mammal and sound The proposed regulations governing will also be informed by findings from research; (3) any information which the take of marine mammals incidental any established working groups, reveals that marine mammals may have to SEFSC fisheries research survey investigations into gear modifications been taken in a manner, extent, or

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number not authorized by these Pursuant to section 605(b) of the Subpart H—Taking Marine Mammals regulations or subsequent LOAs; and (4) Regulatory Flexibility Act (RFA), the Incidental to Southeast Fisheries Science findings from any mitigation research Chief Counsel for Regulation of the Center Fisheries Research in the Atlantic Ocean, Gulf of Mexico, and Caribbean Sea (e.g., gear modification). In addition, Department of Commerce has certified developments on the effectiveness of to the Chief Counsel for Advocacy of the Sec. mitigation measures as discovered Small Business Administration that this 219.71 Specified activity and specified through research (e.g., stiffness of lazy geographical region. proposed rule, if adopted, would not 219.72 Effective dates. lines) will inform adaptive management have a significant economic impact on 219.73 Permissible methods of taking. strategies. Finally, the SEFSC–SCDNR a substantial number of small entities. 219.74 Prohibitions. working group is investigating the The SEFSC and TPWD are the sole 219.75 Mitigation requirements. relationships between SCDNR research entities that would be subject to the 219.76 Requirements for monitoring and surveys and marine mammal takes. Any requirements in these proposed reporting. report produced by that working group regulations, and the SEFSC and TPWD 219.77 Letters of Authorization. 219.78 Renewals and modifications of will inform improvements to marine are not small governmental mammal monitoring and mitigation. Letters of Authorization. jurisdictions, small organizations, or 219.79–219.80 [Reserved] Endangered Species Act (ESA) small businesses, as defined by the RFA. Because of this certification, a Subpart H—Taking Marine Mammals On May 9, 2016, NMFS Southeast regulatory flexibility analysis is not Incidental to Southeast Fisheries Regional Office (SERO) issued a required and none has been prepared. Science Center Fisheries Research in Biological Opinion on Continued the Atlantic Ocean, Gulf of Mexico, and The proposed rule for the SEFSC does Authorization and Implementation of Caribbean Sea National Marine Fisheries Service’s not contain a collection-of-information Integrated Fisheries Independent requirement subject to the provisions of § 219.71 Specified activity and specified Monitoring Activities in the Southeast the Paperwork Reduction Act (PRA) geographical region. Region. The Biological Opinion found because the applicant is a Federal (a) Regulations in this subpart apply independent fishery research is not agency. However, the TWPD is not a only to the National Marine Fisheries likely to adversely affect the following federal agency. Notwithstanding any Service’s (NMFS) Southeast Fisheries ESA-listed species: Blue whales, sei other provision of law, no person is Science Center (SEFSC) and those whales, sperm whales, fin whales, required to respond to nor shall a persons it authorizes or funds to humpback whales, North Atlantic right person be subject to a penalty for failure conduct fishery-independent research whales, gulf sturgeon and all listed to comply with a collection of surveys on its behalf for the taking of corals in the action area. NMFS information subject to the requirements marine mammals that occurs in the area amended this Biological Opinion on of the PRA unless that collection of outlined in paragraph (b) of this section June 4, 2018, updating hearing group information displays a currently valid and that occurs incidental to SEFSC and information based on the best available OMB control number. The proposed partner research survey program science and adding NMFS OPR as an rule for TPWD contains collection-of- operations. action agency. Similar to the previous information requirements subject to the (b) The taking of marine mammals by finding, the amended Biological provisions of the PRA. These the SEFSC and partners may be Opinion concluded SEFSC independent requirements have been approved by authorized in a 5-year Letter of fishery research is not likely to OMB under control number 0648–0151 Authorization (LOA) only if it occurs adversely affect listed marine mammals. and include applications for regulations, during fishery research surveys in the Bottlenose dolphins are not listed subsequent LOAs, and reports. Atlantic Ocean, Gulf of Mexico, and under the ESA; therefore, consultation Caribbean Sea. under section 7 of the ESA is not List of Subjects in 50 CFR Part 219 warranted for the issuance of § 219.72 Effective dates. Endangered and threatened species, regulations and associated LOA to the Fish, Marine mammals, Reporting and Regulations in this subpart are TPWD. recordkeeping requirements, Wildlife. effective from [EFFECTIVE DATE OF Request for Information FINAL RULE] through [DATE 5 YEARS Dated: February 13, 2019. AFTER EFFECTIVE DATE OF FINAL NMFS requests interested persons to Samuel D. Rauch III, RULE]. submit comments, information, and Deputy Assistant Administrator for § 219.73 Permissible methods of taking. suggestions concerning the NWFSC Regulatory Programs, National Marine request and the proposed regulations Fisheries Service. (a) Under a LOA issued pursuant to (see ADDRESSES). All comments will be §§ 216.106 of this chapter and 219.77, reviewed and evaluated as we prepare For reasons set forth in the preamble, the Holder of the LOA (hereinafter final rules and make final 50 CFR part 219 is proposed to be ‘‘SEFSC’’) may incidentally, but not determinations on whether to issue the amended as follows: intentionally, take marine mammals requested authorizations. This notice within the areas described in § 219.71 and referenced documents provide all PART 219—REGULATIONS by Level A harassment, serious injury, environmental information relating to GOVERNING THE TAKING AND or mortality associated with fisheries our proposed action for public review. IMPORTING OF MARINE MAMMALS research gear including trawls, gillnets, and hook and line, and Level B Classification ■ 1. The authority citation for part 219 harassment associated with use of active Pursuant to the procedures continues to read as follows: acoustic systems provided the activity is established to implement Executive Authority: 16 U.S.C. 1361 et seq. in compliance with all terms, Order 12866, the Office of Management conditions, and requirements of the and Budget has determined that this ■ 2. Add subpart H to part 219 to read regulations in this subpart and the proposed rule is not significant. as follows: relevant LOA.

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§ 219.74 Prohibitions. circumstances of a take should it occur appear to be at risk of interaction, then Notwithstanding takings and any action necessary to avoid future the set may be made. If the vessel is contemplated in § 219.73 and take. moved to a different section of the authorized by a LOA issued under (i) Working groups shall be sampling area, the move-on rule §§ 216.106 of this chapter and 219.77, established if a partner takes more than mitigation protocol would begin anew. no person in connection with the one marine mammal within 5 years to If, after moving on, marine mammals activities described in § 219.71 may: identify circumstances of marine remain at risk of interaction, the SEFSC (a) Violate, or fail to comply with, the mammal take and necessary action to shall move again or skip the station. terms, conditions, and requirements of avoid future take. Each working group Marine mammals that are sighted this subpart or a LOA issued under shall meet at least once annually. further than 500 m from the vessel shall §§ 216.106 of this chapter and 219.77; (ii) Each working group shall consist be monitored to determine their (b) Take any marine mammal species of at least one SEFSC representative position and movement in relation to or stock not specified in the LOA; knowledgeable of the mitigation, the vessel to determine whether the (c) Take any marine mammal in any monitoring and reporting requirements move-on rule mitigation protocol should manner other than as specified in the contained within these regulations, one be implemented. The SEFSC may use LOA; or more research institution or SEFSC best professional judgment, in (d) Take a marine mammal specified representative(s) (preferably accordance with this paragraph, in in such LOA in numbers exceeding researcher(s) aboard vessel when take or making decisions related to deploying those for which NMFS determines risk of take occurred), one or more staff gear. results in more than a negligible impact from NMFS Southeast Regional Office (8) SEFSC shall maintain visual on the species or stocks of such marine Protected Resources Division, and one monitoring effort during the entire mammal; or or more staff from NMFS Office of period of time that trawl, hook and line, (e) Take a marine mammal specified Protected Resources. and seine net gear is in the water (i.e., in such LOA if NMFS determines such (5) When deploying any type of throughout gear deployment, fishing, taking results in an unmitigable adverse sampling gear at sea, SEFSC shall at all and retrieval). If marine mammals are impact on the species or stock of such times monitor for any unusual sighted before the gear is fully removed marine mammal for taking for circumstances that may arise at a from the water, SEFSC shall take the subsistence uses. sampling site and use best professional most appropriate action to avoid marine judgment to avoid any potential risks to mammal interaction. SEFSC may use § 219.75 Mitigation requirements. marine mammals during use of all best professional judgment in making When conducting the activities research equipment. this decision. identified in § 219.71, the mitigation (6) SEFSC shall implement handling (9) If research operations have been measures contained in any LOA issued and/or disentanglement protocols as suspended because of the presence of under §§ 216.106 of this chapter and specified in the guidance that shall be marine mammals, SEFSC may resume 219.77 must be implemented. These provided to survey personnel. At least operations when practicable only when mitigation measures shall include but two persons aboard SEFSC ships and the animals are believed to have are not limited to: one person aboard smaller vessels, departed the area. SEFSC may use best (a) General conditions. (1) SEFSC including vessels operated by partners professional judgment in making this shall take all necessary measures to where no SEFSC staff are present, will determination; coordinate and communicate in advance be trained in marine mammal handling, (b) Trawl and seine survey mitigation. of each specific survey with the release, and disentanglement In addition to the general conditions National Oceanic and Atmospheric procedures. provided in § 219.75(a), the following Administration’s (NOAA) Office of (7) For all research surveys using measures must be implemented during trawl, hook and line, or seine net gear Marine and Aviation Operations trawl and seine surveys: (OMAO) or other relevant parties on in open-ocean waters (as defined from (1) SEFSC shall conduct fishing non-NOAA platforms to ensure that all the coastline seaward), the SEFSC must operations as soon as is practicable mitigation measures and monitoring implement move-on rule mitigation upon arrival at the sampling station and requirements described herein, as well protocol upon observation of any prior to other environmental sampling as the specific manner of marine mammal other than dolphins not involving trawl nets. implementation and relevant event- and porpoises attracted to the vessel. If (2) The SEFSC shall limit tow times contingent decision-making processes, marine mammals (other than dolphins to 30 minutes (except for sea turtle are clearly understood and agreed upon; or porpoises) are observed within 500 m research trawls); (2) SEFSC shall coordinate and of the planned location in the 10 (3) The SEFSC shall, during haul conduct briefings at the outset of each minutes before setting gear, or are back, open cod end close to deck/sorting survey and as necessary between ship’s considered at risk of interacting with the table to avoid damage to animals that crew (Commanding Officer/master or vessel or research gear, or appear to be may be caught in gear and empty gear designee(s), as appropriate) and approaching the vessel and are as quickly as possible after retrieval scientific party in order to explain considered at risk of interaction, the haul back; responsibilities, communication SEFSC shall move on to another (4) The SEFSC shall delay gear procedures, marine mammal monitoring sampling location or remain on site but deployment if any marine mammals are protocol, and operational procedures; delay gear deployment until the animals believed to be at-risk of interaction; (3) SEFSC shall coordinate, on an departs the area or appears to no longer (5) The SEFSC shall retrieve gear annual basis, with all partners to ensure be at risk of interacting with the vessel immediately if any marine mammals are that requirements, procedures, and or gear. Once the animal is no longer believed to be entangled or at-risk of decision-making processes are considered a risk, another 10-minute entanglement; understood and properly implemented. observation shall be conducted. If no (6) Dedicated marine mammal (4) Where appropriate, SEFSC shall marine mammals are observed during observations shall occur at least 15 establish and maintain cooperating this subsequent observation period or minutes prior to the beginning of net partner working group(s) to identify the visible animal(s) still does not deployment. This watch may include

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approach to the sampling station. (3) SEFSC shall implement the move- interaction and instructive examples Marine mammal watches should be on rule mitigation protocol, as described where use of best professional judgment conducted by systematically scanning in § paragraph(a)(6) of this section. was determined to be successful or the surrounding waters and marsh edge (4) SEFSC shall maintain visual unsuccessful. (if visible) 360 degrees around the monitoring effort during the entire (3) SEFSC shall coordinate with vessel. If dolphin(s) are sighted and period of gear deployment and retrieval. NMFS’ Office of Science and believed to be at-risk of interaction (e.g., If marine mammals are sighted before Technology to ensure training and moving in the direction of the vessel/ the gear is fully deployed or retrieved, guidance related to handling procedures gear; moms/calves close to the gear; SEFSC shall take the most appropriate and data collection is consistent with etc.), gear deployment should be action to avoid marine mammal other fishery science centers, where delayed until the animal(s) are no longer interaction. SEFSC may use best appropriate. at risk or have left the area on their own. professional judgment in making this (d) Handling procedures and data If species other than dolphins are decision. collection. (1) SEFSC must implement sighted, trawling must not be initiated (5) If deployment or retrieval standardized marine mammal handling, and the marine mammal(s) must be operations have been suspended disentanglement, and data collection allowed to either leave or pass through because of the presence of marine procedures. These standard procedures the area safely before trawling is mammals, SEFSC may resume such will be subject to approval by NMFS’ initiated. All marine mammal sightings operations when practicable only when Office of Protected Resources (OPR). must be logged and reported per 219.76 the animals are believed to have (2) For any marine mammal of this section. departed the area. SEFSC may use best interaction involving the release of a (7) Retrieve gear immediately if professional judgment in making this live animal, SEFSC shall collect marine mammals are believed to be decision. necessary data to facilitate a serious captured/entangled and follow (6) SEFSC shall implement standard injury determination. disentanglement protocols. survey protocols, including maximum (3) SEFSC shall provide its relevant (8) The SEFSC shall minimize soak durations and a prohibition on personnel with standard guidance and ‘‘pocketing’’ in areas of trawl nets where chumming. training regarding handling of marine dolphin depredation evidence is mammals, including how to identify commonly observed; § 219.76 Requirements for monitoring and different species, bring an individual (9) When conducting research under reporting. aboard a vessel, assess the level of an ESA section 10(a)(1)(A) scientific (a) Compliance coordination. SEFSC consciousness, remove fishing gear, research permit issued by NMFS, all shall designate a compliance return an individual to water, and log marine mammal monitoring protocol coordinator who shall be responsible for activities pertaining to the interaction. contained within that permit must be ensuring and documenting compliance (4) SEFSC shall record such data on implemented. with all requirements of any LOA issued standardized forms, which will be (10) SEFSC shall implement standard pursuant to §§ 216.106 of this chapter subject to approval by OPR. SEFSC shall survey protocols to minimize potential and 219.77 and for preparing for any also answer a standard series of for marine mammal interactions, subsequent request(s) for incidental take supplemental questions regarding the including maximum tow durations at authorization. details of any marine mammal target depth and maximum tow (b) Visual monitoring program. (1) interaction. distance, and shall carefully empty the Marine mammal visual monitoring shall (e) Reporting. (1) Marine mammal trawl as quickly as possible upon occur prior to deployment of trawl, net, capture/entanglements (live or dead) retrieval. Trawl nets must be cleaned and hook and line gear, respectively; must be reported immediately to the prior to deployment. throughout deployment of gear and Southeast Region Marine Mammal (11) The SEFSC shall continue active fishing of research gears (not Stranding Hotline at 1–877–433–8299 investigation into gear modifications including longline soak time); prior to and SEFSC and to OPR and NMFS (e.g., stiffening lazy lines) and the retrieval of longline gear; and Southeast Regional Office (SERO, 727– effectiveness of gear modification. throughout retrieval of all research gear. 551–5780) within 48 hours of (c) Hook and line (including longline) (2) Marine mammal watches shall be occurrence. Also within 48 hours, survey mitigation—In addition to the conducted by watch-standers (those SEFSC shall log the incident in NMFS’ General Conditions provided in navigating the vessel and/or other crew) Protected Species Incidental Take paragraph(a) of this section, the at all times when the vessel is transiting (PSIT) database and provide any following measures must be to avoid ship strike. supplemental information to OPR and implemented during hook and line (c) Training. (1) SEFSC must conduct SERO upon request. Information related surveys: annual training for all SEFSC and to marine mammal interaction (animal (1) SEFSC shall deploy hook and line affiliate chief scientists and other captured or entangled in research gear) gear as soon as is practicable upon personnel who may be responsible for must include details of research survey, arrival at the sampling station. conducting dedicated marine mammal monitoring conducted prior to (2) SEFSC shall initiate marine visual observations to explain interaction, full descriptions of any mammal watches (visual observation) mitigation measures and monitoring and observations of the animals, the context no less than 30 minutes prior to both reporting requirements in the LOA, (vessel and conditions), decisions made, deployment and retrieval of longline mitigation and monitoring protocols, and rationale for decisions made in gear. Marine mammal watches shall be marine mammal identification, vessel and gear handling. conducted by scanning the surrounding completion of datasheets, and use of (2) Annual reporting: waters with the naked eye and range- equipment. SEFSC may determine the (i) SEFSC shall submit an annual finding binoculars (or monocular). agenda for these trainings. summary report to OPR not later than During nighttime operations, visual (2) SEFSC shall also dedicate a ninety days following the end of a given observation shall be conducted using portion of training to discussion of best year. SEFSC shall provide a final report the naked eye and available vessel professional judgment, including use in within thirty days following resolution lighting. any incidents of marine mammal of comments on the draft report;

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(ii) These reports shall contain, at specified activity to the Southeast (d) The LOA shall set forth: minimum, the following: Regional Stranding Coordinator within (1) Permissible methods of incidental (A) Annual line-kilometers and 24 hours. If the discovery is made by a taking; locations surveyed during which the partner, the report shall also be (2) Means of effecting the least EK60, ME70, SX90 (or equivalent submitted to the SEFSC Environmental practicable adverse impact (i.e., sources) were predominant and Compliance Coordinator. The following mitigation) on the species, its habitat, associated pro-rated estimates of actual information shall be provided: and on the availability of the species for take; (i) Time, date, and location (latitude/ subsistence uses; and (B) Summary information regarding longitude) of the incident; (3) Requirements for monitoring and use of all trawl, gillnet, and hook and (ii) Description of the incident reporting. line gear, including location, number of including, but not limited to, (e) Issuance of the LOA shall be based sets, hook hours, tows, etc., specific to monitoring prior to and occurring at on a determination that the level of each gear; time of incident; taking will be consistent with the (C) Accounts of surveys where marine (iii) Environmental conditions (e.g., findings made for the total taking mammals were observed during wind speed and direction, Beaufort sea allowable under these regulations. sampling but no interactions occurred; state, cloud cover, visibility); (f) Notice of issuance or denial of an (D) All incidents of marine mammal (iv) Description of all marine mammal LOA shall be published in the Federal interactions, including circumstances of observations in the 24 hours preceding Register within thirty days of a the event and descriptions of any the incident; determination. mitigation procedures implemented or (v) Species identification or not implemented and why and, if description of the animal(s) involved; § 219.78 Renewals and modifications of released alive, serious injury (vi) Status of all sound source or gear Letters of Authorization. determinations; used in the 24 hours preceding the (a) An LOA issued under §§ 216.106 (E) A written evaluation of the incident; of this chapter and 219.77 for the effectiveness of SEFSC mitigation (vii) Water depth; activity identified in § 219.71(a) shall be strategies in reducing the number of (viii) Fate of the animal(s) (e.g., dead, renewed or modified upon request by marine mammal interactions with injured but alive, injured and moving, the applicant, provided that: survey gear, including gear blood or tissue observed in the water, (1) The proposed specified activity modifications and best professional status unknown, disappeared, etc.); and and mitigation, monitoring, and judgment and suggestions for changes to (ix) Photographs or video footage of reporting measures, as well as the the mitigation strategies, if any; the animal(s). anticipated impacts, are the same as (F) A summary of all relevant training (3) In the event of a ship strike of a those described and analyzed for these provided by SEFSC and any marine mammal by any SEFSC or regulations (excluding changes made coordination with NMFS Office of partner vessel involved in the activities pursuant to the adaptive management Science and Technology and the covered by the authorization, SEFSC or provision in paragraph (c)(1) of this Southeast Regional Office; and partner shall immediately report the section), and (G) A summary of meetings and information in paragraph (f)(2) of this (2) OPR determines that the workshops outcomes with the South section, as well as the following mitigation, monitoring, and reporting Carolina Department of Natural additional information: measures required by the previous LOA Resources designed to reduce the (i) Vessel’s speed during and leading under these regulations were number of marine mammal interactions up to the incident; implemented. (f) Reporting of injured or dead (ii) Vessel’s course/heading and what (b) For an LOA modification or marine mammals. (1) In the operations were being conducted, renewal requests by the applicant that unanticipated event that the activity (iii) Status of all sound sources in use, include changes to the activity or the (iv) Description of avoidance defined in § 219.71(a) clearly causes the mitigation, monitoring, or reporting measures/requirements that were in take of a marine mammal in a (excluding changes made pursuant to place at the time of the strike and what prohibited manner, SEFSC personnel the adaptive management provision in additional measures were taken, if any, engaged in the research activity shall paragraph (c)(1) of this section) that do to avoid strike. immediately cease such activity until (v) Estimated size and length of not change the findings made for the such time as an appropriate decision animal that was struck; regulations or result in no more than a regarding activity continuation can be (vi) Description of the behavior of the minor change in the total estimated made by the SEFSC Director (or marine mammal immediately preceding number of takes (or distribution by designee). The incident must be and following the strike. species or years), OPR may publish a reported immediately to OPR and SERO. notice of proposed LOA in the Federal OPR and SERO will review the § 219.77 Letters of Authorization. Register, including the associated circumstances of the prohibited take (a) To incidentally take marine analysis of the change, and solicit and work with SEFSC to determine mammals pursuant to these regulations, public comment before issuing the LOA. what measures are necessary to SEFSC must apply for and obtain an (c) An LOA issued under §§ 216.106 minimize the likelihood of further LOA. of this chapter and 219.77 for the prohibited take. The immediate decision (b) An LOA, unless suspended or activity identified in § 219.71(a) may be made by SEFSC regarding continuation revoked, may be effective for a period of modified by Office of Protected of the specified activity is subject to time not to exceed the expiration date Resources (OPR) under the following OPR concurrence. The report must of these regulations. circumstances: include the information included in (c) In the event of projected changes (1) Adaptive management. OPR may paragraph (f)(2) of this section. to the activity or to mitigation and modify or augment the existing (2) SEFSC or partner shall report all monitoring measures required by an mitigation, monitoring, or reporting injured or dead marine mammals LOA, SEFSC must apply for and obtain measures (after consulting with SEFSC observed during fishery research a modification of the LOA as described regarding the practicability of the surveys that are not attributed to the in § 219.78. modifications) if doing so creates a

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reasonable likelihood of more Letter of Authorization (LOA) only if the (b) Upon close approach to the site effectively accomplishing the goals of taking occurs within the following and prior to setting the net, researchers the mitigation and monitoring set forth Texas bays: East Matagorda, Matagorda, shall conduct a dedicated observation in the preamble for these regulations. San Antonio, Aransas, Corpus Christi, for marine mammals for 15 minutes. If (i) If, through adaptive management, upper Laguna Madre and lower Laguna no marine mammals are observed the modifications to the mitigation, Madre. during this time, the net may be set. If monitoring, or reporting measures are marine mammals are observed during substantial, OPR will publish a notice of § 219.82 Effective dates. this time or while setting the net, the net proposed LOA in the Federal Register Regulations in this subpart are shall not be deployed or will be and solicit public comment. effective from [EFFECTIVE DATE OF immediately removed from the water (ii) [Reserved] FINAL RULE] through [DATE 5 YEARS until such time as the animals has left (2) Emergencies. If OPR determines AFTER EFFECTIVE DATE OF FINAL the area and is on a path away from the that an emergency exists that poses a RULE]. net site. (c) TPWD shall not set gillnets in significant risk to the well-being of the § 219.83 Permissible methods of taking. species or stocks of marine mammals dolphin ‘‘hot spots’’ defined as grids specified in LOAs issued pursuant to Under a LOA issued pursuant to where dolphins have been taken on §§ 216.106 of this chapter and 219.77, §§ 216.106 of this chapter and 219.87, more than one occasion or where an LOA may be modified without prior the Holder of the LOA (hereinafter multiple adjacent grids have had at least notice or opportunity for public ‘‘TPWD’’) may incidentally, but not one dolphin encounter. comment. Notice would be published in intentionally, take marine mammals (d) TPWD shall tie the float line/lead the Federal Register within thirty days within the areas described in § 219.81 line to the net at no more than 4-inch of the action. by Level A harassment, serious injury, intervals. or mortality associated with gillnet (e) Captured live or injured marine §§ 219.79—219.80 [Reserved] fisheries research gear provided the mammals shall be released from activity is in compliance with all terms, research gear and returned to the water PART 219—REGULATIONS conditions, and requirements of the as soon as possible with no gear or as GOVERNING THE TAKING AND regulations in this subpart and the little gear remaining on the animal as IMPORTING OF MARINE MAMMALS relevant LOA. possible. Animals are released without ■ 3. The authority citation for part 219 § 219.84 Prohibitions. removing them from the water. continues to read as follows: (f) At least one person aboard TPWD Notwithstanding takings gillnet vessel shall be trained in NMFS- Authority: 16 U.S.C. 1361 et seq. contemplated in § 219.103 and approved marine mammal handling, ■ 4. Add subpart I to part 219 to read authorized by a LOA issued under release, and disentanglement as follows: §§ 216.106 of this chapter and 219.87, procedures via attendance at NMFS no person in connection with the Highly Migratory Species/Protected Subpart I—Taking Marine Mammals activities described in § 219.81 may: Incidental to Texas Parks and Wildlife Species Safe Handling, Release, and Department Gillnet Fisheries Research in (a) Violate, or fail to comply with, the Identification Workshop the Gulf of Mexico terms, conditions, and requirements of (www.nmfs.noaa.gov/sfa/hms/ this subpart or a LOA issued under _ Sec. compliance/workshops/protected 219.81 Specified activity and specified §§ 216.106 of this chapter and 219.87; species_workshop/index.html) or other geographical region. (b) Take any marine mammal species similar training. 219.82 Effective dates. or stock not specified in the LOA; (g) Each TPWD gillnet researcher shall 219.83 Permissible methods of taking. (c) Take any marine mammal in any be familiar with NMFS Protected 219.84 Prohibitions. manner other than as specified in the Species Safe Handling and Release 219.85 Mitigation requirements. LOA; Manual. 219.86 Requirements for monitoring and (d) Take a marine mammal specified reporting. in such LOA in numbers exceeding § 219.86 Requirements for monitoring and 219.87 Letters of Authorization. those for which NMFS determines reporting. 219.88 Renewals and modifications of results in more than a negligible impact (a) Marine mammal monitoring. Letters of Authorization. TPWD shall monitor for marine 219.89–219.90 [Reserved] on the species or stocks of such marine mammal; or mammals upon 0.5 miles from sampling Subpart I—Taking Marine Mammals (e) Take a marine mammal specified site and for 15 minutes at sampling site Incidental to Texas Parks and Wildlife in such LOA if NMFS determines such prior to setting the net. Should a marine Department Gillnet Fisheries Research taking results in an unmitigable adverse mammal be observed within 0.5 miles of in the Gulf of Mexico impact on the species or stock of such the site and is on a path toward the site, marine mammal for taking for the net will not be deployed. The net § 219.81 Specified activity and specified subsistence uses. may only be deployed if marine geographical region. mammals are observed on a path away (a) Regulations in this subpart apply § 219.85 Mitigation requirements. from the site consistently for 15 minutes only to the Texas Parks and Wildlife When conducting the activities or are not re-sighted within 15 minutes. Department (TPWD) and those persons identified in § 219.81(a), the mitigation Should a marine mammal be observed acting under its authority during gillnet measures contained in any LOA issued within 0.5 miles of the site and is on a fishery research surveys for the taking of under §§ 216.106 of this chapter and path toward the site, the net will not be marine mammals that occurs in the area 219.87 must be implemented. These deployed. Should a marine mammal be outlined in paragraph (b) of this section mitigation measures shall include but observed during the 15-minute and that occurs incidental to research are not limited to: observation period at the site, the net survey program operations. (a) Only new or fully repaired gillnets shall not be deployed. The net may only (b) The taking of marine mammals by shall be used. No holes greater than six be deployed if marine mammals are TPWD may be authorized in a 5-year inches are permitted. observed on a path away from the site

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consistently for 15 minutes or are not re- (2) These reports shall contain, at those described and analyzed for these sighted within 15 minutes. minimum, the following: regulations (excluding changes made (b) Reporting of injured or dead (i) Locations and time/date of all net pursuant to the adaptive management marine mammals. (1) In the sets; provision in paragraph (c)(1) of this unanticipated event that the activity (ii) All instances of marine mammal section); and defined in § 219.81(a) clearly causes the observations and descriptions of any (2) OPR determines that the take of a marine mammal in a mitigation procedures implemented or mitigation, monitoring, and reporting prohibited manner, NMFS Office of not implemented and why; measures required by the previous LOA Protected Resources (OPR) and NMFS (iii) All incidents of marine mammal Southeast Regional Office (SERO). interactions, including all information under these regulations were TPWD shall not set any more nets until required in paragraph (b) of this section; implemented; such time as an appropriate decision (iv) A written evaluation of the (b) For an LOA modification or regarding activity continuation can be effectiveness of TPWD mitigation renewal requests by the applicant that made by NMFS OPR and SERO. OPR strategies in reducing the number of include changes to the activity or the and SERO will review the marine mammal interactions with mitigation, monitoring, or reporting circumstances of the prohibited take survey gear, including gear (excluding changes made pursuant to and work with SEFSC to determine modifications and best professional the adaptive management provision in what measures are necessary to judgment and suggestions for changes to paragraph (c)(1) of this section) that do minimize the likelihood of further the mitigation strategies, if any; not change the findings made for the prohibited take. The report must (v) A summary of all relevant marine regulations or result in no more than a include the information included in mammal training and any coordination minor change in the total estimated with OPR and SERO. paragraph (b)(2) of this section, details number of takes (or distribution by of research survey, monitoring § 219.87 Letters of Authorization. species or years), OPR may publish a conducted prior to interaction, full notice of proposed LOA in the Federal descriptions of any observations of the (a) To incidentally take marine Register, including the associated animals, the context (vessel and mammals pursuant to these regulations, analysis of the change, and solicit conditions), decisions made, and SEFSC must apply for and obtain an public comment before issuing the LOA. rationale for decisions made in vessel LOA. and gear handling. (b) An LOA, unless suspended or (c) An LOA issued under §§ 216.106 (2) TPWD shall report all injured or revoked, may be effective for a period of of this chapter and 219.87 for the dead marine mammals observed during time not to exceed the expiration date activity identified in § 219.71(a) may be fishery research surveys that are not of these regulations. modified by Office of Protected attributed to the specified activity to the (c) In the event of projected changes Resources (OPR) under the following Southeast Regional Stranding to the activity or to mitigation and circumstances: monitoring measures required by an Coordinator within 24 hours. The (1) Adaptive Management. OPR may following information shall be provided: LOA, TPWD must apply for and obtain a modification of the LOA as described modify or augment the existing (i) Time, date, and location (latitude/ mitigation, monitoring, or reporting longitude) of the incident; in § 219.88. (d) The LOA shall set forth: measures (after consulting with SEFSC (ii) Description of the incident (1) Permissible methods of incidental regarding the practicability of the including, but not limited to, taking; modifications) if doing so creates a monitoring prior to and occurring at (2) Means of effecting the least time of incident; reasonable likelihood of more practicable adverse impact (i.e., (iii) Environmental conditions (e.g., effectively accomplishing the goals of mitigation) on the species, its habitat, wind speed and direction, Beaufort sea the mitigation and monitoring set forth and on the availability of the species for state, cloud cover, visibility); in the preamble for these regulations. subsistence uses; and (i) If, through adaptive management, (iv) Description of all marine mammal (3) Requirements for monitoring and the modifications to the mitigation, observations in the 24 hours preceding reporting. the incident; (e) Issuance of the LOA shall be based monitoring, or reporting measures are (v) Species identification or on a determination that the level of substantial, OPR will publish a notice of description of the animal(s) involved; taking will be consistent with the proposed LOA in the Federal Register (vi) Status of all sound source or gear findings made for the total taking and solicit public comment. used in the 24 hours preceding the allowable under these regulations. (ii) [Reserved] incident; (f) Notice of issuance or denial of an (2) Emergencies. If OPR determines (vii) Water depth; LOA shall be published in the Federal (viii) Fate of the animal(s) (e.g. dead, that an emergency exists that poses a Register within thirty days of a significant risk to the well-being of the injured but alive, injured and moving, determination. blood or tissue observed in the water, species or stocks of marine mammals status unknown, disappeared, etc.); and § 219.88 Renewals and modifications of specified in LOAs issued pursuant to (ix) Photographs or video footage of Letters of Authorization. §§ 216.106 of this chapter and 219.87, the animal(s). (a) An LOA issued under §§ 216.106 an LOA may be modified without prior (c) Annual reporting. (1) TPWD shall of this chapter and 219.87 for the notice or opportunity for public submit an annual summary report to activity identified in § 219.81(a) shall be comment. Notice would be published in OPR not later than ninety days renewed or modified upon request by the Federal Register within thirty days following the end of the fall sampling the applicant, provided that: of the action. season. TPWD shall provide a final (1) The proposed specified activity report within thirty days following and mitigation, monitoring, and § 219.89–219.90 [Reserved] resolution of comments on the draft reporting measures, as well as the [FR Doc. 2019–02738 Filed 2–26–19; 8:45 am] report. anticipated impacts, are the same as BILLING CODE 3510–22–P

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Reader Aids Federal Register Vol. 84, No. 39 Wednesday, February 27, 2019

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING FEBRUARY

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. 985...... 4381 Presidential Documents 3 CFR 1206...... 5379 Executive orders and proclamations 741–6000 Proclamations: 1209...... 3114 The United States Government Manual 741–6000 9840...... 2043 9841...... 2045 9 CFR Other Services 9842 (See Proc. 310...... 2430 Electronic and on-line services (voice) 741–6020 9822) ...... 3665 Privacy Act Compilation 741–6050 9843...... 3965 10 CFR 9844...... 4949 2...... 2433 Executive Orders: ELECTRONIC RESEARCH 9...... 3095 13788 (Amended by 13...... 2433 World Wide Web 13858) ...... 2039 72 ...... 4309, 4683, 4684, 6055 13858...... 2039 430...... 2436, 5346 Full text of the daily Federal Register, CFR and other publications 13859...... 3967 903...... 5347 is located at: www.govinfo.gov. Administrative Orders Proposed Rules: Federal Register information and research tools, including Public Memorandums: 34...... 3116 Inspection List and electronic text are located at: Memorandum of 36...... 3116 www.federalregister.gov. December 21, 39...... 3116 2018 ...... 3957 50...... 2069 E-mail Memorandum of 52...... 2069 December 21, FEDREGTOC (Daily Federal Register Table of Contents Electronic 72...... 6086 2018 ...... 3959 Mailing List) is an open e-mail service that provides subscribers 100...... 2069 Memorandum of with a digital form of the Federal Register Table of Contents. The 430 ...... 3120, 3910, 6088, 6095 January 8, 2019 ...... 3961 digital form of the Federal Register Table of Contents includes 431...... 1652, 3910 Memorandum of HTML and PDF links to the full text of each document. January 15, 2019 ...... 3963 11 CFR To join or leave, go to https://public.govdelivery.com/accounts/ Space Policy Proposed Rules: USGPOOFR/subscriber/new, enter your email address, then Directive–4 of 100...... 2070 follow the instructions to join, leave, or manage your February 19, 2019 ...... 6049 110...... 3344 subscription. 112...... 2071 5 CFR PENS (Public Law Electronic Notification Service) is an e-mail service that notifies subscribers of recently enacted laws. 894...... 1599 12 CFR 1201...... 5583 To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 1...... 4222 1655...... 1600 3...... 4222 and select Join or leave the list (or change settings); then follow 2634...... 6053 the instructions. 5...... 4222 2636...... 6053 19...... 6313 FEDREGTOC and PENS are mailing lists only. We cannot Proposed Rules: 22...... 4953 respond to specific inquiries. 532...... 3729 23...... 4222 24...... 4222 Reference questions. Send questions and comments about the 7 CFR Federal Register system to: [email protected] 32...... 4222 51...... 959 46...... 4222 The Federal Register staff cannot interpret specific documents or 273...... 4677 109...... 6313 regulations. 300...... 2427 172...... 4953 301...... 2427 208...... 4222, 4953 FEDERAL REGISTER PAGES AND DATE, FEBRUARY 318...... 2427 211...... 4222, 4309 319...... 2427 215...... 4222 959–1342...... 1 6053–6312...... 26 330...... 2427 217...... 4222 1343–1598...... 4 6313–6650...... 27 340...... 2427 223...... 4222 1599–2042...... 5 355...... 2427 225...... 4222 2043–2426...... 6 905...... 2047 238...... 4309 2427–2704...... 7 932...... 4307 252...... 4222 2705–3094...... 8 953...... 4681 263...... 2051 3095–3284...... 11 989...... 2049 303...... 2705 3285–3668...... 12 1206...... 5335 324...... 4222 1208...... 4951 3669–3966...... 13 325...... 4222 1212...... 1343 327...... 1346, 4222 3967–4306...... 14 1774...... 3669 337...... 1346 4307–4676...... 15 Proposed Rules: 339...... 4953 4677–4948...... 19 54...... 1641 347...... 4222 4949–5334...... 20 205...... 4377 348...... 2705 5335–5582...... 21 273...... 980 390...... 4222 5583–5950...... 22 278...... 4739 614...... 4953 5951–6052...... 25 279...... 4739 622...... 1354

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652...... 2706 5584, 5587, 5589, 5592, 416...... 1006 117...... 1401, 2735 700...... 1601 5595, 6059, 6062, 6064, 165 ...... 969, 2736, 4333, 5354, 701...... 1601 6067, 6315, 6317, 6321 21 CFR 6080 702...... 1601 48...... 3669 216...... 4696 Proposed Rules: 703...... 1601 71 ...... 961, 2718, 3095, 3097, 872...... 4998 100...... 4390, 6107 704...... 1601 3098, 3101, 3673, 3674, 1308...... 2448 154...... 2799 705...... 1601 3676, 3677, 3679, 4991, Proposed Rules: 155...... 2800 708a...... 1601 4993, 5352, 5951 50...... 5968 165...... 2479 708b...... 1601 73...... 3299 201...... 6204 328...... 2483, 4154 709...... 1601 95...... 963 310...... 6204 334...... 3739 710...... 1601 97 ...... 2441, 2443, 2719, 2720, 312...... 5968 715...... 1601 3973, 3975, 3977, 3978, 347...... 6204 34 CFR 717...... 1601 4994, 4996 352...... 6204 36...... 971 723...... 1601 Proposed Rules: 812...... 5968 668...... 971 725...... 1601 13...... 3614 1305...... 5395 Proposed Rules: 741...... 1601 21...... 5605 106...... 4018 745...... 1601 39 ...... 2465, 2467, 2791, 2793, 22 CFR 746...... 1601 2796, 3131, 4012, 4387, Proposed Rules: 37 CFR 747...... 1601, 2052 5609, 5611, 5614, 5617, 171...... 1419 201...... 3693 748...... 1601 5620, 5960 203...... 3351 202...... 3693, 3698 749...... 1601 71 ...... 3349, 3730, 5014, 5016, 203...... 3699 750...... 1601 5017, 5019, 5392, 5622 23 CFR 385...... 1918 760...... 1601, 4953 107...... 3732, 3856 1270...... 2731 Proposed Rules: 790...... 1601 1275...... 2731 791...... 1601 15 CFR 2...... 4393 Proposed Rules: 11...... 4393 792...... 1601 6...... 2445 658...... 2071 930...... 5308 902...... 2725 201...... 1661 25 CFR 932...... 5308 950...... 3101 38 CFR 1026...... 1356 Proposed Rules: 16 CFR 3...... 2449, 4336 1277...... 5308 30...... 3135 1411...... 2437 1...... 3980 8...... 2449, 4336 1610...... 4975 Proposed Rules: 26 CFR 14...... 2449, 4336 19...... 2449, 4336 Proposed Rules: Ch. II ...... 3134 1 ...... 1838, 2952, 6076 1...... 3062 301...... 6468 20...... 2449, 4336 17 CFR 21...... 2449, 4336 3...... 3062, 6107 Proposed Rules: 38...... 5952 5...... 3062 143...... 3103 1...... 1014, 3015 39...... 5952 6...... 3062 200...... 5202 54...... 5969 23...... 3062 201...... 4906 Proposed Rules: 24...... 3062 229...... 2402 27 CFR 4...... 1678, 3354 32...... 3062, 6107 240...... 2402, 4906 Proposed Rules: 17...... 5629 34...... 3062 242...... 5202 9...... 3353 38...... 2093 44...... 2778 Proposed Rules: 39...... 2093 Ch. I ...... 3350 29 CFR 46...... 3345 39 CFR 160...... 3062 9...... 3350 30...... 3301 192...... 3062 36...... 3350 4022...... 3983 20...... 3107 206...... 3062 37...... 3350 Proposed Rules: 3035...... 974 208...... 3062 38...... 3350 1404...... 1420 Proposed Rules 211...... 3062 39...... 3350 1601...... 5624 3020...... 1420 215...... 3062 43...... 3350 1614...... 4015 40 CFR 217...... 3062, 6107 75...... 2778 1626...... 5624 223...... 3062 230...... 5393 2590...... 5969 19...... 2056, 5955 225...... 3062 232...... 5393 4001...... 2075 52 ...... 976, 1610, 1615, 2060, 238 ...... 3062, 4002, 5014 239...... 5393 4204...... 2075 2063, 2449, 2738, 3302, 248...... 2778 240...... 4614, 5393 4206...... 2075 3305, 3701, 3703, 3705, 251...... 3062 255...... 2778 4207...... 2075 3708, 3711, 3986, 3991, 252...... 4002, 5014 270...... 1286, 5393 4211...... 2075 4338, 5000, 5004, 5598, 303...... 3062 274...... 1286, 5393 4219...... 2075 5601, 6334 324...... 3062, 6107 60 ...... 3108, 3985, 3986 18 CFR 327...... 5380 31 CFR 61...... 3108 337...... 2366, 3062 11...... 1359 1...... 6324 62...... 3712 347...... 3062 33...... 6069 27...... 3105 63 ...... 2742, 3108, 3308 351...... 2778 250...... 966 70 ...... 1615, 3108, 6338 362...... 3062 385...... 966, 3982 32 CFR 80...... 2453 365...... 1653, 3062 Proposed Rules: 75...... 3681 122...... 3324 390...... 1653, 3062 7...... 2469 100...... 968 124...... 3324 614...... 5389 35...... 993 101...... 968 125...... 3324 715...... 5957 141...... 1412, 5968 162...... 4710 180 .....2456, 4340, 4345, 6081, 1041...... 4252, 4298 385...... 1412, 5968 199...... 4326 6339 279...... 969 261...... 5816 20 CFR 14 CFR 807...... 5353 262...... 5816 25...... 6313 30...... 3026 809a...... 2734 264...... 5816 39 ...... 2437, 2707, 2709, 2713, 404...... 4323 813...... 5353 265...... 5816 2715, 3285, 3288, 3290, 408...... 4323 884...... 5354 266...... 5816 3297, 4310, 4313, 4315, 416...... 4323 268...... 5816 4318, 4320, 4685, 4686, Proposed Rules: 33 CFR 270...... 5816 4692, 4694, 4987, 5350, 404...... 1006 100...... 3301 271...... 5603

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273...... 5816 493...... 1536 Proposed Rules: Proposed Rules: Proposed Rules: 1001...... 2340 1...... 2485, 4035 215...... 4429 Ch. I ...... 3396 2...... 5654 217...... 4429 49...... 1690 44 CFR 5...... 4742 806...... 1014 52 ...... 1015, 1016, 1021, 1025, 64...... 978, 3338 25 ...... 2126, 4742, 5654 1037, 1690, 2109, 2801, 32...... 2132 49 CFR 3354, 3358, 3369, 3373, 45 CFR 54...... 2132 107...... 3993 65...... 2132 3376, 3381, 3384, 3387, 1148...... 6344 110...... 3993 73...... 2485 3389, 3740, 3742, 3744, 1149...... 1402 76...... 4039 Proposed Rules: 4019, 4021, 4025, 4403, 1158...... 1402 10...... 2137, 5403 97...... 4742 4407, 4411, 4422, 4426, 1607...... 1404 563...... 2804 5020, 5032, 6353 1611...... 1408 1002...... 1046 60...... 2484, 2485 48 CFR Proposed Rules: 1312...... 1046 62...... 1039 Ch. 2 ...... 4360 144...... 5969 63...... 1570, 2670 204...... 4362 146...... 5969 50 CFR 70...... 5032 206...... 4364 147...... 5969 81 ...... 4029, 4422, 4426 211...... 4366 17...... 6278 229...... 5356 110...... 2483, 4154 46 CFR 212 ...... 4362, 4368, 4370 112...... 2483, 4154 215...... 4364, 4368 600...... 4733 116...... 2483, 4154 506...... 2459 234...... 4364 622 .....1631, 2759, 3723, 4733, 117...... 2483, 4154 Proposed Rules: 235...... 4364 5955 122...... 2483, 4154 515...... 2125 236...... 4371 635...... 3724, 5358 131...... 3395 239...... 4368 648 .....1632, 2463, 2760, 3341, 151...... 4741 47 CFR 247...... 4370 4373, 5377 174...... 2115 0...... 2753, 6085 252 ...... 4362, 4368, 4370 665...... 2767, 5378 180...... 1691, 2115 1 ...... 1618, 2460, 2461, 2753, 501...... 1410, 3714 679 .....2067, 2068, 2723, 2776, 230...... 4154 5008 511...... 3714 3342, 3726, 3727 232...... 2483, 4154 5...... 2753 517...... 3714 680...... 2723 271...... 5650 25...... 2462 519...... 1410 697...... 4733 300 .....2116, 2122, 2483, 4033, 30...... 1618 532...... 3714 Proposed Rules: 4054 32...... 4711 536...... 3714 17...... 6110 302...... 2483, 4154 36...... 4351 543...... 3714 216...... 5977 401...... 2483, 4154 54...... 4711 546...... 3714 217...... 3136 64...... 1409 552...... 1410, 3714 219...... 6576 42 CFR 65...... 4711 5215...... 3112 300...... 3403, 4758 Proposed Rules: 73...... 2753 5242...... 3113 622...... 4758 88...... 5972 74...... 2753 5252...... 3113 648...... 5035

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in today’s List of Public enacted public laws. To Laws. subscribe, go to http:// LIST OF PUBLIC LAWS Public Laws Electronic listserv.gsa.gov/archives/ Last List February 26, 2019 Notification Service publaws-l.html (PENS) Note: No public bills which Note: This service is strictly have become law were for E-mail notification of new received by the Office of the PENS is a free electronic mail laws. The text of laws is not Federal Register for inclusion notification service of newly available through this service. PENS cannot respond to specific inquiries sent to this address.

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