Vol. 83 Wednesday, No. 95 May 16, 2018

Pages 22587–22830

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 83, No. 95

Wednesday, May 16, 2018

Agriculture Department NOTICES See Food Safety and Inspection Service Applicability Determination Index Data System Recent Posting: Bureau of Safety and Environmental Enforcement Standards of Performance for New Stationary Sources, NOTICES Emission Guidelines and Federal Plan Requirements Agency Information Collection Activities; Proposals, for Existing Sources, National Emission Standards for Submissions, and Approvals: Hazardous Air Pollutants, and Stratospheric Ozone Plans and Information, 22711–22712 Protection Program, 22668–22678 Meetings: Children and Families Administration National Environmental Justice Advisory Council; Teleconference, 22678 NOTICES Orders Denying Petitions To Set Aside Consent Agreements Agency Information Collection Activities; Proposals, and Proposed Final Orders, 22678–22680 Submissions, and Approvals, 22688–22689 Federal Aviation Administration Coast Guard RULES RULES Airworthiness Directives: Safety Zones: Boeing Airplanes, 22589–22592 Fireworks and Swim Events in Captain of the Port New York Zone, 22592–22593 Federal Election Commission NOTICES Commerce Department Filing Dates: See International Trade Administration Texas Special Election, 27th Congressional District, See National Oceanic and Atmospheric Administration 22680–22681

Defense Department Federal Emergency Management Agency NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submissions, and Approvals: Claims and Appeals, 22687–22688 Post Disaster Survivor Preparedness Research, 22701– 22702 Education Department Federal Energy Regulatory Commission NOTICES NOTICES Applications for New Awards: Agency Information Collection Activities; Proposals, Center To Improve Social and Emotional Learning and Submissions, and Approvals, 22661–22666 School Safety—Cooperative Agreement, 22644–22649 Applications: Fulbright-Hays Doctoral Dissertation Research Abroad UGI Central Penn Gas, Inc., UGI Utilities, Inc., 22663 Fellowship Program, 22653–22657 Combined Filings, 22658–22659, 22667 Fulbright-Hays Group Projects Abroad Program, 22649– Hydroelectric Applications: 22653 Portland General Electric Co., 22659–22660 Orders: Energy Department Duke Energy Corp. Progress Energy, Inc., Carolina Power See Federal Energy Regulatory Commission and Light Co., 22660–22661 See National Nuclear Security Administration Requests for Blanket Authorizations: RULES Southern Star Central Gas Pipeline, Inc., 22666–22667 Energy Conservation Program: Standards for Ceiling Fan Light Kits, 22587–22589 Federal Highway Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals, 22657–22658 Motorcyclist Advisory Council, 22740 Environmental Protection Agency Federal Housing Finance Agency RULES NOTICES Pesticide Tolerances: Agency Information Collection Activities; Proposals, Tebuconazole, 22595–22601 Submissions, and Approvals, 22681–22685 Removal of Federal Reformulated Gasoline Program From Northern Kentucky Portion of Cincinnati-Hamilton Federal Motor Carrier Safety Administration Ozone Maintenance Area, 22593–22595 NOTICES PROPOSED RULES Agency Information Collection Activities; Proposals, National Emission Standards for Hazardous Air Pollutants: Submissions, and Approvals: Surface Coating of Wood Building Products Residual Risk Financial Responsibility, Trucking and Freight and Technology Review, 22754–22794 Forwarding, 22740–22741

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Federal Railroad Administration See Surface Mining Reclamation and Enforcement Office NOTICES NOTICES Product Safety Plans: Agency Information Collection Activities; Proposals, Petition for Approval, 22741–22742 Submissions, and Approvals: Alternatives Process in Hydropower Licensing, 22702– Federal Reserve System 22703 NOTICES Agency Information Collection Activities; Proposals, Internal Revenue Service Submissions, and Approvals, 22685–22687 NOTICES Changes in Bank Control: Meetings: Acquisitions of Shares of a Bank or Bank Holding Taxpayer Advocacy Panel Joint Committee, 22751 Company, 22687 International Trade Administration Food and Drug Administration NOTICES NOTICES Antidumping or Countervailing Duty Investigations, Orders, Agency Information Collection Activities; Proposals, or Reviews: Submissions, and Approvals: Certain Quartz Surface Products From the People’s Generic Clearance for Collection of Qualitative Data on Republic of China, 22618–22622 Tobacco Products and Communications, 22690– Initiations of Less-Than-Fair-Value Investigations: 22691 Certain Quartz Surface Products From the People’s Meetings: Republic of China, 22613–22618 Blood Products Advisory Committee, 22689–22690 International Trade Commission Food Safety and Inspection Service NOTICES PROPOSED RULES Investigations; Determinations, Modifications, and Rulings, Eliminating Unnecessary Requirements for Hog Carcass etc.: Cleaning, 22604–22607 Certain Non-Volatile Memory Devices and Products NOTICES Containing Same, 22712–22713 Agency Information Collection Activities; Proposals, Justice Department Submissions, and Approvals: Requirements To Notify FSIS of Adulterated or See National Institute of Corrections Misbranded Product, Prepare and Maintain Written Library of Congress Recall Procedures, and Document Certain HACCP PROPOSED RULES Plan Reassessments, 22612–22613 Mandatory Deposit of Electronic-Only Books: Extension of Voluntary Recalls of Meat, Poultry, and Egg Products, Comment Period, 22609–22610 22611–22612 National Aeronautics and Space Administration General Services Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submissions, and Approvals: Claims and Appeals, 22687–22688 Claims and Appeals, 22687–22688 Federal Travel Regulation Bulletins; Rescissions, 22688 National Highway Traffic Safety Administration NOTICES Geological Survey Federal Motor Vehicle Theft Prevention Standard; NOTICES Exemption Petitions: Meetings: BMW of North America, LLC, 22742–22743 National Geospatial Advisory Committee, 22702 Motor Vehicle Defect Petitions; Denials, 22743–22744 Health and Human Services Department National Institute of Corrections See Children and Families Administration NOTICES See Food and Drug Administration Meetings: See National Institutes of Health Advisory Board, 22713 NOTICES Agency Information Collection Activities; Proposals, National Institutes of Health Submissions, and Approvals, 22691–22692 NOTICES Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Meetings: Costs, 22692–22700 Center for Scientific Review, 22700 National Center for Advancing Translational Sciences, Homeland Security Department 22701 See Coast Guard National Heart, Lung, and Blood Institute, 22700 See Federal Emergency Management Agency National Institute of Biomedical Imaging and Bioengineering, 22700–22701 Interior Department See Bureau of Safety and Environmental Enforcement National Nuclear Security Administration See Geological Survey NOTICES See National Park Service Meetings: See Reclamation Bureau Defense Programs Advisory Committee, 22658

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National Oceanic and Atmospheric Administration Securities and Exchange Commission RULES NOTICES Atlantic Highly Migratory Species: Applications: Atlantic Bluefin Tuna Fisheries, 22602–22603 Franklin Alternative Strategies Funds, et al., 22720– Coastal Migratory Pelagic Resources of Gulf of Mexico and 22722 Atlantic Region: Programs for Allocation of Regulatory Responsibilities 2017–2018 Commercial Closure for King Mackerel in Gulf Pursuant to Rule 17d–2: of Mexico Northern Zone, 22601–22602 Amended Plan for Allocation of Regulatory NOTICES Responsibilities Between Financial Industry Fisheries of the South Atlantic: Regulatory Authority, Inc., Cboe Exchange, Inc., and Southeast Data, Assessment, and Review; Stock ID Cboe C2 Exchange, Inc., 22732–22738 Review Workshop for Cobia (Rachycentron Self-Regulatory Organizations; Proposed Rule Changes: canadum), 22623 Cboe BYX Exchange, Inc., 22730–22731 Meetings: Cboe BZX Exchange, Inc., 22722–22726, 22728–22730 North Pacific Fishery Management Council, 22624 Cboe C2 Exchange, Inc., 22796–22829 Pacific Fishery Management Council, 22622–22623 Municipal Securities Rulemaking Board, 22726–22728 Takes of Marine Mammals Incidental to Specified Nasdaq PHLX, LLC, 22717–22720 Activities: Annapolis Passenger Ferry Dock Project, Puget Sound, Small Business Administration WA, 22624–22644 NOTICES Disaster Declarations: National Park Service Hawaii; Public Assistance Only, 22738 NOTICES Kentucky; Public Assistance Only, 22738 National Register of Historic Places: Pending Nominations and Related Actions, 22703–22704 State Department NOTICES National Transportation Safety Board Annual Certification of Shrimp-Harvesting Nations, 22739– NOTICES 22740 Meetings; Sunshine Act, 22713–22714 Meetings: Overseas Security Advisory Council, 22738–22739 Nuclear Regulatory Commission NOTICES Surface Mining Reclamation and Enforcement Office Environmental Impact Statements; Availability, etc.: PROPOSED RULES Holtec International HI-STORE Consolidated Interim Pennsylvania Abandoned Mine Land Reclamation Program, Storage Facility Project, 22714–22715 22607–22609 Pennsylvania Regulatory Program; Correction, 22607 Peace Corps NOTICES Transportation Department Agency Information Collection Activities; Proposals, See Federal Aviation Administration Submissions, and Approvals, 22715 See Federal Highway Administration Pension Benefit Guaranty Corporation See Federal Motor Carrier Safety Administration See Federal Railroad Administration NOTICES See National Highway Traffic Safety Administration Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Locating and Paying Participants, 22715–22716 Submissions, and Approvals, 22744–22749 Petitions for Exemptions From Federal Motor Vehicle Theft Postal Service Prevention Standards: NOTICES Ford Motor Co., 22749–22751 Product Changes: Priority Mail and First-Class Package Service Negotiated Treasury Department Service Agreement, 22717 See Internal Revenue Service Priority Mail Express and Priority Mail Negotiated NOTICES Service Agreement, 22716 List of Countries Requiring Cooperation With International Priority Mail Express, Priority Mail, and First-Class Boycott, 22751–22752 Package Service Negotiated Service Agreement, Survey of Foreign Ownership of U.S. Securities as of June 22716–22717 30, 2018, 22752 Railroad Retirement Board NOTICES Meetings; Sunshine Act, 22717 Separate Parts In This Issue

Reclamation Bureau Part II NOTICES Environmental Protection Agency, 22754–22794 Central Valley Project Improvement Act Water Management Plans, 22710–22711 Part III Quarterly Status Report of Water Service, Repayment, and Securities and Exchange Commission, 22796–22829 Other Water-Related Contract Actions, 22704–22710

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Reader Aids To subscribe to the Federal Register Table of Contents Consult the Reader Aids section at the end of this issue for electronic mailing list, go to https://public.govdelivery.com/ phone numbers, online resources, finding aids, and notice accounts/USGPOOFR/subscriber/new, enter your e-mail of recently enacted public laws. address, then follow the instructions to join, leave, or manage your subscription.

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CFR PARTS AFFECTED IN THIS ISSUE

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

9 CFR Proposed Rules: 310...... 22604 10 CFR 430...... 22587 14 CFR 39...... 22589 30 CFR Proposed Rules: 938 (2 documents) ...... 22607 33 CFR 165...... 22592 37 CFR Proposed Rules: 202...... 22609 40 CFR 80...... 22593 180...... 22595 Proposed Rules: 63...... 22754 50 CFR 622...... 22601 635...... 22602

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Rules and Regulations Federal Register Vol. 83, No. 95

Wednesday, May 16, 2018

This section of the FEDERAL REGISTER Washington DC 20585–0121. Telephone compliance date for CFLKs in DOEs contains regulatory documents having general (202) 586–7796. Email: Elizabeth.Kohl@ regulations at 10 CFR 430.32(s). applicability and legal effect, most of which hq.doe.gov. DOE is also updating a cross reference are keyed to and codified in the Code of in 10 CFR 430.32(s)(5), changing the Federal Regulations, which is published under SUPPLEMENTARY INFORMATION: Title III, reference to paragraph (s)(2) or (3) to 50 titles pursuant to 44 U.S.C. 1510. Part B of the Energy Policy and paragraph (s)(3) or (4). Paragraph (s)(5) Conservation Act of 1975 (EPCA), provides requirements for ceiling fan The Code of Federal Regulations is sold by Public Law 94–163 (42 U.S.C. 6291– the Superintendent of Documents. light kits other than those specified in 6309, as codified), established the the cross-referenced paragraphs, which Energy Conservation Program for were not updated when the new ceiling DEPARTMENT OF ENERGY Consumer Products Other Than fan standards were codified as Automobiles. These products include paragraph (s)(2). 10 CFR Part 430 CFLKs, the subject of this document. In light of the applicable statutory [EERE–2012–BT–STD–0045] Section 325(ff)(5) of EPCA authorizes requirement enacted by Congress to DOE to consider amended standards for deem the compliance date for CFLK RIN 1904–AC87 CFLKs. On January 6, 2016 DOE standards to be January 21, 2020, the promulgated an energy conservation Energy Conservation Program: Energy absence of any benefit in providing standard for CFLKs with a compliance comment given that the rule Conservation Standards for Ceiling date of 3 years after the date of issuance, Fan Light Kits incorporates the specific requirement or January 7, 2019. Section 325(ff)(5) established by Public Law 115–161, AGENCY: Office of Energy Efficiency and required that the compliance date of the DOE finds that there is good cause Renewable Energy, Department of standards be at least 2 years after the under 5 U.S.C. 553(b)(B) to not provide Energy. date of issuance, and the 3 year lead prior notice and an opportunity for ACTION: Final rule. time DOE specified in the final public comment on the actions outlined standards rule is consistent with other in this document to implement Public SUMMARY: The U.S. Department of provisions of EPCA that require a 3-year Law 115–161. DOE similarly finds good Energy (DOE) is publishing this final lead time for some products. Section cause under 5 U.S.C. 553(b)(B) to not rule to amend the compliance date for 325(ff)(6) of EPCA also authorizes DOE provide prior notice and an opportunity energy conservation standards for to consider amended standards for for public comment on the update to the ceiling fan light kits (CFLKs). The ceiling fans, as a separate product under erroneous cross-reference. For these energy conservation standards for the statute. DOE promulgated an energy reasons, providing prior notice and an CFLKs were issued by DOE on January conservation standard for ceiling fans opportunity for public comment would, 6, 2016, and compliance with the on January 19, 2017. The compliance in this instance, be unnecessary and standards was required on January 7, date for the ceiling fan standards rule is contrary to the public interest. For the 2019. The ‘‘Ceiling Fan Energy January 21, 2020. Section 325(ff)(6) did same reason, DOE finds good cause Conservation Harmonization Act,’’ not have a similar provision regarding pursuant to 5 U.S.C. 553(d)(3) to waive subsequently deemed the compliance the compliance date for ceiling fan the 30-day delay in effective date for date for DOE’s CFLKs standards to be standards; however, as with the CFLK this rule. January 21, 2020, and required DOE to rule, the 3 year lead time DOE specified amend its regulation to reflect this in the final standards rule is consistent Procedural Requirements requirement. DOE is also updating a with other provisions of EPCA that A. Review Under Executive Order cross-reference in the regulations that require a 3-year lead time for some 12866, ‘‘Regulatory Planning and was mistakenly not updated when the products. Review’’ ceiling fan energy conservation After DOE’s promulgation of final This final rule is not a ‘‘significant standards were codified. rules establishing energy conservation regulatory action’’ under any of the DATES: This rule is effective May 16, standards for CFLKs and Ceiling Fans, criteria set out in section 3(f) of 2018. The compliance date for the Congress enacted S. 2030, the ‘‘Ceiling Executive Order 12866, ‘‘Regulatory standards established for CFLKs is Fan Energy Conservation Harmonization Planning and Review.’’ 58 FR 51735 January 21, 2020. Act’’ (‘‘the Act’’), which was signed into (October 4, 1993). Accordingly, this FOR FURTHER INFORMATION CONTACT: law as Public Law 115–161 on April 3, action was not subject to review by the Lucy deButts, U.S. Department of 2018. The Act amended the compliance Office of Information and Regulatory Energy, Office of Energy Efficiency and date for the CFLK standards to establish Affairs (OIRA) in the Office of Renewable Energy, Building a single compliance date for the energy Management and Budget (OMB). Technologies Office, EE–5B, 1000 conservation standards for both CFLKs Independence Avenue SW, Washington, and ceiling fans. The Act also required B. Review Under Executive Order 13771 DC 20585–0121. Telephone: (202) 287– that DOE, not later than 60 days after On January 30, 2017, the President 1604. Email: the date of enactment, make any issued Executive Order 13771, ApplianceStandardsQuestions@ technical and conforming changes to ‘‘Reducing Regulation and Controlling ee.doe.gov. any regulation, guidance document, or Regulatory Costs.’’ That Order stated the Elizabeth Kohl, U.S. Department of procedure necessary to implement the policy of the executive branch is to be Energy, Office of General Counsel, GC– changed compliance date. This action prudent and financially responsible in 33, 1000 Independence Avenue SW, codifies Congress’s revision of the the expenditure of funds, from both

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public and private sources. The Order of an initial regulatory flexibility to have an accountable process to stated it is essential to manage the costs analysis for any rule that by law must ensure meaningful and timely input by associated with the governmental be proposed for public comment, unless State and local officials in the imposition of private expenditures the agency certifies that the rule, if development of regulatory policies that required to comply with Federal promulgated, will not have a significant have Federalism implications. On regulations. This final rule is expected economic impact on a substantial March 14, 2000, DOE published a to be an E.O. 13771 deregulatory action. number of small entities. As required by statement of policy describing the Additionally, on February 24, 2017, Executive Order 13272, Proper intergovernmental consultation process the President issued Executive Order Consideration of Small Entities in it will follow in the development of 13777, ‘‘Enforcing the Regulatory Agency Rulemaking, 67 FR 53461 such regulations. 65 FR 13735. EPCA Reform Agenda.’’ The Order required (August 16, 2002), DOE published governs and prescribes Federal the head of each agency designate an procedures and policies on February 19, preemption of State regulations as to agency official as its Regulatory Reform 2003, to ensure that the potential energy conservation for the products Officer (RRO). Each RRO oversees the impacts of its rules on small entities are that are the subject of this final rule. implementation of regulatory reform properly considered during the States can petition DOE for exemption initiatives and policies to ensure that rulemaking process. 68 FR 7990. The from such preemption to the extent, and agencies effectively carry out regulatory Department has made its procedures based on criteria, set forth in EPCA. (42 reforms, consistent with applicable law. and policies available on the Office of U.S.C. 6297) No further action is Further, E.O. 13777 requires the General Counsel’s website: http:// required by Executive Order 13132. www.gc.doe.gov. DOE is revising the establishment of a regulatory task force G. Review Under Executive Order Code of Federal Regulations to at each agency. The regulatory task force 12988, ‘‘Civil Justice Reform’’ is required to make recommendations to incorporate, without change, a revised the agency head regarding the repeal, compliance date prescribed by Public With respect to the review of existing replacement, or modification of existing Law 115–161. Because this is a regulations and the promulgation of regulations, consistent with applicable technical amendment for which a new regulations, section 3(a) of law. At a minimum, each regulatory general notice of proposed rulemaking Executive Order 12988, ‘‘Civil Justice reform task force must attempt to is not required, the analytical Reform,’’ 61 FR 4729 (February 7, 1996), identify regulations that: requirements of the Regulatory imposes on Federal agencies the general (i) Eliminate jobs, or inhibit job Flexibility Act do not apply to this duty to adhere to the following creation; rulemaking. requirements: (1) Eliminate drafting (ii) Are outdated, unnecessary, or errors and ambiguity; (2) write D. Review Under the Paperwork ineffective; regulations to minimize litigation; and (iii) Impose costs that exceed benefits; Reduction Act of 1995 (3) provide a clear legal standard for (iv) Create a serious inconsistency or This rulemaking imposes no new affected conduct rather than a general otherwise interfere with regulatory information or recordkeeping standard and promote simplification reform initiatives and policies; requirements. Accordingly, Office of and burden reduction. Section 3(b) of (v) Are inconsistent with the Management and Budget clearance is Executive Order 12988 specifically requirements of Information Quality not required under the Paperwork requires that Executive agencies make Act, or the guidance issued pursuant to Reduction Act. (44 U.S.C. 3501 et seq.) every reasonable effort to ensure that the that Act, in particular those regulations regulation: (1) Clearly specifies the that rely in whole or in part on data, E. Review Under the National preemptive effect, if any; (2) clearly information, or methods that are not Environmental Policy Act of 1969 specifies any effect on existing Federal publicly available or that are DOE has determined that this rule is law or regulation; (3) provides a clear insufficiently transparent to meet the covered under the Categorical Exclusion legal standard for affected conduct standard for reproducibility; or found in DOE’s National Environmental while promoting simplification and (vi) Derive from or implement Policy Act regulations at paragraph A.6 burden reduction; (4) specifies the Executive Orders or other Presidential of appendix A to subpart D, 10 CFR part retroactive effect, if any; (5) adequately directives that have been subsequently 1021, which applies to rulemakings that defines key terms; and (6) addresses rescinded or substantially modified. are strictly procedural. Accordingly, other important issues affecting clarity DOE concludes that this final rule is neither an environmental assessment and general draftsmanship under any consistent with the directives set forth nor an environmental impact statement guidelines issued by the Attorney in these executive orders. Specifically, is required. General. Section 3(c) of Executive Order this final rule is a deregulatory action to 12988 requires Executive agencies to F. Review Under Executive Order 13132, implement Public Law 115–161, which review regulations in light of applicable ‘‘Federalism’’ amended the compliance date for the standards in section 3(a) and section CFLK standards to establish a single Executive Order 13132, ‘‘Federalism.’’ 3(b) to determine whether they are met compliance date for the energy 64 FR 43255 (Aug. 10, 1999) imposes or it is unreasonable to meet one or conservation standards for both CFLKs certain requirements on Federal more of them. DOE has completed the and ceiling fans. This action is agencies formulating and implementing required review and determined that, to estimated to result in cost savings. policies or regulations that preempt the extent permitted by law, this final Assuming a 7 percent discount rate, this State law or that have Federalism rule meets the relevant standards of final rule would yield annualized cost implications. The Executive Order Executive Order 12988. savings of approximately $0.29 million requires agencies to examine the H. Review Under the Unfunded (2016$). constitutional and statutory authority supporting any action that would limit Mandates Reform Act of 1995 C. Review Under the Regulatory the policymaking discretion of the Title II of the Unfunded Mandates Flexibility Act States and to carefully assess the Reform Act of 1995 (UMRA) (Pub. L. The Regulatory Flexibility Act (5 necessity for such actions. The 104–4) requires each Federal agency to U.S.C. 601 et seq.) requires preparation Executive Order also requires agencies assess the effects of Federal regulatory

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actions on State, local, and Tribal K. Review Under the Treasury and Approval of the Office of the Secretary governments and the private sector. For General Government Appropriations The Secretary of Energy has approved a proposed regulatory action likely to Act, 2001 publication of this final rule. result in a rule that may cause the expenditure by State, local, and Tribal Section 515 of the Treasury and List of Subjects in 10 CFR Part 430 General Government Appropriations governments, in the aggregate, or by the Administrative practice and Act, 2001 (44 U.S.C. 3516, note) private sector of $100 million or more procedure, Confidential business disseminations of information to the in any one year (adjusted annually for information, Energy conservation, inflation), section 202 of UMRA requires public under guidelines established by Household appliances, Small a Federal agency to publish a written each agency pursuant to general businesses. guidelines issued by OMB. OMB’s statement that estimates the resulting Issued in Washington, DC, on May 9, 2018. costs, benefits, and other effects on the guidelines were published at 67 FR 8452 (February 22, 2002), and DOE’s Daniel R. Simmons, national economy. (2 U.S.C. 1532(a),(b)) guidelines were published at 67 FR Principal Deputy Assistant Secretary, Energy The UMRA also requires a Federal 62446 (October 7, 2002). DOE has Efficiency and Renewable Energy. agency to develop an effective process reviewed this rulemaking under the For the reasons set forth in the to permit timely input by elected OMB and DOE guidelines and has preamble, DOE hereby amends chapter officers of State, local, and Tribal concluded that it is consistent with II, subchapter D, of title 10 of the Code governments on a proposed ‘‘significant applicable policies in those guidelines. of Federal Regulations as set forth intergovernmental mandate,’’ and below: requires an agency plan for giving notice L. Review Under Executive Order 13211, and opportunity for timely input to ‘‘Actions Concerning Regulations That PART 430—ENERGY CONSERVATION potentially affected small governments Significantly Affect Energy Supply, PROGRAM FOR CONSUMER before establishing any requirements Distribution, or Use’’ PRODUCTS that might significantly or uniquely affect small governments. On March 18, Executive Order 13211, ‘‘Actions ■ 1. The authority citation for part 430 1997, DOE published a statement of Concerning Regulations That continues to read as follows: policy on its process for Significantly Affect Energy Supply, Authority: 42 U.S.C. 6291–6309; 28 U.S.C. intergovernmental consultation under Distribution, or Use,’’ 66 FR 28355 (May 2461 note. 22, 2001), requires Federal agencies to UMRA (62 FR 12820) (also available at § 430.32 [Amended] http://www.gc.doe.gov). This final rule prepare and submit to the Office of contains neither an intergovernmental Information and Regulatory Affairs ■ 2. Section 430.32 is amended by: mandate nor a mandate that may result (OIRA), Office of Management and ■ a. In paragraphs (s)(3), (4), (5), and (6), in the expenditure of $100 million or Budget, a Statement of Energy Effects for removing the language ‘‘January 7, more in any year, so these requirements any proposed significant energy action. 2019’’ each place it appears and adding under the UMRA do not apply. A ‘‘significant energy action’’ is defined in its place ‘‘January 21, 2020’’. as any action by an agency that ■ b. In paragraph (s)(5), removing the I. Review Under the Treasury and promulgated or is expected to lead to language ‘‘paragraphs (s)(2) or (3)’’ and General Government Appropriations promulgation of a final rule, and that: adding in its place ‘‘paragraph (s)(3) or Act, 1999 (1) Is a significant regulatory action (4)’’. under Executive Order 12866, or any [FR Doc. 2018–10440 Filed 5–15–18; 8:45 am] Section 654 of the Treasury and successor order; and (2) is likely to have BILLING CODE 6450–01–P General Government Appropriations a significant adverse effect on the Act, 1999 (Pub. L. 105–277) requires supply, distribution, or use of energy, or Federal agencies to issue a Family (3) is designated by the Administrator of DEPARTMENT OF TRANSPORTATION Policymaking Assessment for any rule OIRA as a significant energy action. For that may affect family well-being. This any proposed significant energy action, Federal Aviation Administration final rule would not have any impact on the agency must give a detailed the autonomy or integrity of the family statement of any adverse effects on 14 CFR Part 39 as an institution. Accordingly, DOE has energy supply, distribution, or use concluded that it is not necessary to should the proposal be implemented, [Docket No. FAA–2018–0413; Product prepare a Family Policymaking and of reasonable alternatives to the Identifier 2018–NM–061–AD; Amendment 39–19283; AD 2018–10–08] Assessment. action and their expected benefits on energy supply, distribution, and use. J. Review Under Executive Order 12630, RIN 2120–AA64 This final rule would not have a ‘‘Governmental Actions and significant adverse effect on the supply, Airworthiness Directives; Boeing Interference With Constitutionally distribution, or use of energy and, Airplanes Protected Property Rights’’ therefore, is not a significant energy AGENCY: Federal Aviation action. Accordingly, DOE has not The Department has determined, Administration (FAA), DOT. under Executive Order 12630, prepared a Statement of Energy Effects. ACTION: Final rule; request for ‘‘Governmental Actions and Interference M. Congressional Notification comments. With Constitutionally Protected Property Rights,’’ 53 FR 8859 (March 18, As required by 5 U.S.C. 801, DOE will SUMMARY: We are superseding 1988), that this rule would not result in report to Congress on the promulgation Airworthiness Directive (AD) 2016–09– any takings which might require of this rule prior to its effective date. 05, which applied to certain The Boeing compensation under the Fifth The report will state that it has been Company Model 717–200 airplanes. AD Amendment to the United States determined that the rule is not a ‘‘major 2016–09–05 required a detailed Constitution. rule’’ as defined by 5 U.S.C. 804(2). inspection for distress of the vertical

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stabilizer leading edge skin, and related the regulatory evaluation, any are issuing this AD to address the unsafe investigative and corrective actions if comments received, and other condition on these products. necessary. It also required, for certain information. The street address for Related Service Information Under 1 airplanes, repetitive inspections of the Docket Operations (phone: 800–647– CFR Part 51 front spar cap for any loose or missing 5527) is in the ADDRESSES section. fasteners, or any cracking, and related Comments will be available in the AD We reviewed Boeing Alert Service investigative and corrective actions if docket shortly after receipt. Bulletin 717–55A0012, Revision 1, necessary. This AD requires repetitive dated April 11, 2018. The service FOR FURTHER INFORMATION CONTACT: inspections for distress, cracking, and information describes procedures for Muoi Vuong, Aerospace Engineer, loose or missing fasteners in the vertical doing detailed inspections of the front Airframe Section, FAA, Los Angeles stabilizer leading edge skin and front spar cap for any loose or missing ACO Branch, 3960 Paramount spar cap, with new compliance times for fasteners, ETHF or RT inspections for Boulevard, Lakewood, CA 90712–4137; certain airplanes. This AD was distress and for cracking in the vertical phone: 562–627–5205; fax: 562–627– prompted by reports of cracking in the stabilizer leading edge and front spar 5210; email: [email protected]. leading edge of the vertical stabilizer cap at the splice at station Zfs=52.267, and front spar web. We are issuing this SUPPLEMENTARY INFORMATION: and applicable on-condition actions. This service information is reasonably AD to address the unsafe condition on Discussion these products. available because the interested parties DATES: This AD is effective May 31, We issued AD 2016–09–05, have access to it through their normal 2018. Amendment 39–18503 (81 FR 26673, course of business or by the means The Director of the Federal Register May 4, 2016) (‘‘AD 2016–09–05’’), for identified in the ADDRESSES section. approved the incorporation by reference certain The Boeing Company Model FAA’s Determination of a certain publication listed in this AD 717–200 airplanes. AD 2016–09–05 We are issuing this AD because we as of May 31, 2018. required a detailed inspection for any evaluated all the relevant information ADDRESSES: You may send comments, distress of the vertical stabilizer leading edge skin, and related investigative and and determined the unsafe condition using the procedures found in 14 CFR described previously is likely to exist or 11.43 and 11.45, by any of the following corrective actions if necessary. It also required, for certain airplanes, repetitive develop in other products of the same methods: type design. • Federal eRulemaking Portal: Go to detailed inspections of the front spar http://www.regulations.gov. Follow the cap for any loose or missing fasteners, AD Requirements repetitive eddy current testing high instructions for submitting comments. Although this AD does not explicitly frequency (ETHF) and radiographic • Fax: 202–493–2251. restate the requirements of AD 2016– testing (RT) inspections of the front spar • Mail: U.S. Department of 09–05, this AD would retain the cap for any crack, and related Transportation, Docket Operations, requirements of AD 2016–09–05, with investigative and corrective actions if M–30, West Building Ground Floor, revised compliance times for airplanes necessary. AD 2016–09–05 resulted Room W12–140, 1200 New Jersey that have not completed the from reports of 10 cases of elongated Avenue SE, Washington, DC 20590. requirements of AD 2016–09–05. The fastener holes in the vertical stabilizer • Hand Delivery: Deliver to Mail requirements of AD 2016–09–05 are leading edge. We issued AD 2016–09–05 address above between 9 a.m. and 5 referenced in the service information to address cracking in the vertical p.m., Monday through Friday, except identified previously, which, in turn, is stabilizer leading edge and front spar Federal holidays. referenced in paragraph (g) of this AD. For service information identified in cap, which may result in the structure this final rule, contact Boeing becoming unable to support limit load, FAA’s Justification and Determination Commercial Airplanes, Attention: and may lead to the loss of the vertical of the Effective Date Contractual & Data Services (C&DS), stabilizer. An unsafe condition exists that 2600 Westminster Blvd., MC 110–SK57, Actions Since AD 2016–09–05 Was requires the immediate adoption of this Seal Beach, CA 90740–5600; telephone Issued AD without providing an opportunity 562–797–1717; internet https:// for public comment prior to adoption. www.myboeingfleet.com. You may view Since we issued AD 2016–09–05, four The FAA has found that the risk to the this service information at the FAA, cases of elongated fastener holes in the flying public justifies waiving notice Transport Standards Branch, 2200 vertical stabilizer leading edge and nine and comment prior to adoption of this South 216th St., Des Moines, WA. For cases of front spar cap damage or cracks rule because cracks in the vertical information on the availability of this were reported. Seven of the nine cases stabilizer leading edge and front spar material at the FAA, call 206–231–3195. involved small cracks of approximately cap could result in the structure It is also available on the internet at 0.3 inch in the front spar cap. Two of becoming unable to support limit load, http://www.regulations.gov by searching the nine cases involved a severed front and may lead to the loss of the vertical for and locating Docket No. FAA–2018– spar cap and front spar web cracking, stabilizer. Therefore, we find good cause 0413. and one also involved skin cracking. that notice and opportunity for prior The longest cracks, 4.5 inches in length, Examining the AD Docket public comment are impracticable. In were discovered in the left skin of the addition, for the reason(s) stated above, You may examine the AD docket on vertical stabilizer leading edge and the we find that good cause exists for the internet at http:// front spar web of a Boeing Model 717– making this amendment effective in less www.regulations.gov by searching for 200 airplane during an initial inspection than 30 days. and locating Docket No. FAA–2018– required by AD 2016–09–05. We 0413; or in person at Docket Operations determined that for airplanes on which Comments Invited between 9 a.m. and 5 p.m., Monday an initial inspection has not been done This AD is a final rule that involves through Friday, except Federal holidays. as specified in AD 2016–09–05, a requirements affecting flight safety and The AD docket contains this final rule, revised compliance time is needed. We was not preceded by notice and an

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opportunity for public comment. comments on the overall regulatory, will also post a report summarizing each However, we invite you to send any economic, environmental, and energy substantive verbal contact we receive written data, views, or arguments about aspects of this final rule. We will about this final rule. this final rule. Send your comments to consider all comments received by the Costs of Compliance an address listed under the ADDRESSES closing date and may amend this final section. Include the docket number rule because of those comments. We estimate that this AD affects 106 We will post all comments we FAA–2018–0413 and Product Identifier airplanes of U.S. registry. We estimate 2018–NM–061–AD at the beginning of receive, without change, to http:// www.regulations.gov, including any the following costs to comply with this your comments. We specifically invite personal information you provide. We AD:

ESTIMATED COSTS

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

Inspections for distress (retained actions 11 work-hours × $85 per hour = $935 $0 $935 per inspection $99,110 per inspec- from AD 2016–09–05). per inspection cycle. cycle. tion cycle. Repetitive inspections for cracking and 7 work-hours × $85 per hour = $595 0 $595 per inspection $63,070 per inspec- loose or missing fasteners (retained per inspection cycle. cycle. tion cycle. actions from AD 2016–09–05).

The new requirements of this AD add Regulatory Findings FR 26673, May 4, 2016), and adding the no additional economic burden. We have determined that this AD will following new AD: We have received no definitive data not have federalism implications under 2018–10–08 The Boeing Company: that would enable us to provide cost Executive Order 13132. This AD will Amendment 39–19283; Docket No. estimates for the on-condition actions not have a substantial direct effect on FAA–2018–0413; Product Identifier specified in this AD. the States, on the relationship between 2018–NM–061–AD. the national government and the States, (a) Effective Date Authority for This Rulemaking or on the distribution of power and This Airworthiness Directive (AD)is responsibilities among the various Title 49 of the United States Code effective May 31, 2018. levels of government. specifies the FAA’s authority to issue For the reasons discussed above, I (b) Affected ADs rules on aviation safety. Subtitle I, certify that this AD: Section 106, describes the authority of This AD replaces AD 2016–09–05, (1) Is not a ‘‘significant regulatory Amendment 39–18503 (81 FR 26673, May 4, the FAA Administrator. Subtitle VII, action’’ under Executive Order 12866, 2016) (‘‘AD 2016–09–05’’). Aviation Programs, describes in more (2) Is not a ‘‘significant rule’’ under detail the scope of the Agency’s DOT Regulatory Policies and Procedures (c) Applicability authority. (44 FR 11034, February 26, 1979), This AD applies to The Boeing Company We are issuing this rulemaking under (3) Will not affect intrastate aviation Model 717–200 airplanes, certificated in any category, as identified in Boeing Alert the authority described in Subtitle VII, in Alaska, and (4) Will not have a significant Service Bulletin 717–55A0012, Revision 1, Part A, Subpart III, Section 44701, dated April 11, 2018. ‘‘General requirements.’’ Under that economic impact, positive or negative, on a substantial number of small entities section, Congress charges the FAA with (d) Subject under the criteria of the Regulatory promoting safe flight of civil aircraft in Air Transport Association (ATA) of Flexibility Act. air commerce by prescribing regulations America Code 55, Stabilizers. for practices, methods, and procedures List of Subjects in 14 CFR Part 39 (e) Unsafe Condition the Administrator finds necessary for Air transportation, Aircraft, Aviation This AD was prompted by multiple reports safety in air commerce. This regulation safety, Incorporation by reference, of the vertical stabilizer leading edge is within the scope of that authority Safety. showing signs of fastener distress, multiple because it addresses an unsafe condition cracked or severed front spar caps, and Adoption of the Amendment that is likely to exist or develop on cracks in the left skin of the vertical stabilizer products identified in this rulemaking Accordingly, under the authority leading edge and in the front spar web, action. delegated to me by the Administrator, discovered during initial inspections the FAA amends 14 CFR part 39 as required by AD 2016–09–05. We have This AD is issued in accordance with follows: determined that a revised compliance time is authority delegated by the Executive needed for airplanes on which the initial Director, Aircraft Certification Service, PART 39—AIRWORTHINESS inspection has not been done as specified in as authorized by FAA Order 8000.51C. DIRECTIVES AD 2016–09–05. We are issuing this AD to In accordance with that order, issuance address cracking in the vertical stabilizer of ADs is normally a function of the ■ 1. The authority citation for part 39 leading edge and front spar cap, which may Compliance and Airworthiness continues to read as follows: result in the structure becoming unable to support limit load, and may lead to loss of Division, but during this transition Authority: 49 U.S.C. 106(g), 40113, 44701. period, the Executive Director has the vertical stabilizer. delegated the authority to issue ADs § 39.13 [Amended] (f) Compliance applicable to transport category ■ 2. The FAA amends § 39.13 by Comply with this AD within the airplanes to the Director of the System removing Airworthiness Directive (AD) compliance times specified, unless already Oversight Division. 2016–09–05, Amendment 39–18503 (81 done.

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(g) Required Actions Designation Authorization (ODA) that has information on the availability of this Except as required by paragraph (h) of this been authorized by the Manager, Los Angeles material at the FAA, call 206–231–3195. AD, at the applicable time specified in ACO Branch, to make those findings. To be (5) You may view this service information paragraph 1.E., ‘‘Compliance,’’ of Boeing approved, the repair method, modification that is incorporated by reference at the Alert Service Bulletin 717–55A0012, deviation, or alteration deviation must meet National Archives and Records Revision 1, dated April 11, 2018, do all the certification basis of the airplane, and the Administration (NARA). For information on applicable actions identified as ‘‘RC’’ approval must specifically refer to this AD. the availability of this material at NARA, call (required for compliance) in, and in (4) AMOCs approved previously for AD 202–741–6030, or go to: http:// accordance with, the Accomplishment 2016–09–05 are approved as AMOCs for the www.archives.gov/federal-register/cfr/ibr- Instructions of Boeing Alert Service Bulletin corresponding provisions of Boeing Alert locations.html. 717–55A0012, Revision 1, dated April 11, Service Bulletin 717–55A0012, Revision 1, dated April 11, 2018, that are required by 2018. Issued in Des Moines, Washington, on May paragraph (g) of this AD. 8, 2018. (h) Exceptions to Service Information (5) Except as required by paragraph (h)(2) Jeffrey E. Duven, Specifications of this AD: For service information that contains steps that are labeled as Required Director, System Oversight Division, Aircraft (1) For purposes of determining Certification Service. compliance with the requirements of this AD: for Compliance (RC), the provisions of [FR Doc. 2018–10413 Filed 5–15–18; 8:45 am] Where Boeing Alert Service Bulletin 717– paragraphs (j)(5)(i) and (j)(5)(ii) of this AD 55A0012, Revision 1, dated April 11, 2018, apply. BILLING CODE 4910–13–P (i) The steps labeled as RC, including uses the phrase ‘‘the Revision 1 issue date of substeps under an RC step and any figures this service bulletin,’’ this AD requires using identified in an RC step, must be done to the effective date of this AD. comply with the AD. If a step or substep is DEPARTMENT OF HOMELAND (2) Where Boeing Alert Service Bulletin labeled ‘‘RC Exempt,’’ then the RC SECURITY 717–55A0012, Revision 1, dated April 11, requirement is removed from that step or 2018, specifies contacting Boeing, and substep. An AMOC is required for any Coast Guard specifies that action as RC: This AD requires deviations to RC steps, including substeps repair using a method approved in and identified figures. accordance with the procedures specified in 33 CFR Part 165 (ii) Steps not labeled as RC may be paragraph (j) of this AD. deviated from using accepted methods in [Docket No. USCG–2018–0250] (i) Credit for Previous Actions accordance with the operator’s maintenance or inspection program without obtaining (1) This paragraph provides credit for the Safety Zones; Fireworks and Swim approval of an AMOC, provided the RC steps, initial inspection specified in paragraph (g) Events in Captain of the Port New York including substeps and identified figures, can of this AD, if that inspection was performed Zone still be done as specified, and the airplane before June 8, 2016 (the effective date of AD can be put back in an airworthy condition. 2016–09–05), using Boeing MOM–MOM–14– AGENCY: Coast Guard, DHS. 0437–01B(R1), dated July 3, 2014. This (k) Related Information ACTION: Notice of enforcement of service information is not incorporated by (1) For more information about this AD, regulation. reference in this AD. contact: Muoi Vuong, Aerospace Engineer, (2) This paragraph provides credit for the Airframe Section, FAA, Los Angeles ACO SUMMARY: The Coast Guard will enforce actions specified in paragraph (g) of this AD, Branch, 3960 Paramount Boulevard, various safety zones within the Captain if those actions were performed before the Lakewood, CA 90712–4137; phone: 562–627– of the Port New York Zone on the effective date of this AD using Boeing Alert 5205; fax: 562–627–5210; email: specified dates and times. This action is Service Bulletin 717–55A0012, dated June [email protected]. necessary to ensure the safety of vessels, 12, 2015. This service information was (2) Service information identified in this incorporated by reference in AD 2016–09–05. spectators and participants from hazards AD that is not incorporated by reference is associated with fireworks. During the (j) Alternative Methods of Compliance available at the addresses specified in paragraphs (l)(3) and (l)(4) of this AD. enforcement period, no person or vessel (AMOCs) may enter the safety zones without (1) The Manager, Los Angeles ACO Branch, (l) Material Incorporated by Reference permission of the Captain of the Port FAA, has the authority to approve AMOCs (1) The Director of the Federal Register (COTP). for this AD, if requested using the procedures approved the incorporation by reference found in 14 CFR 39.19. In accordance with (IBR) of the service information listed in this DATES: The regulation for the safety 14 CFR 39.19, send your request to your paragraph under 5 U.S.C. 552(a) and 1 CFR zones described in 33 CFR 165.160 will principal inspector or local Flight Standards part 51. be enforced on the dates and times District Office, as appropriate. If sending (2) You must use this service information listed in the table below. information directly to the manager of the as applicable to do the actions required by FOR FURTHER INFORMATION CONTACT: If certification office, send it to the attention of this AD, unless the AD specifies otherwise. you have questions regarding this the person identified in paragraph (k)(1) of (i) Boeing Alert Service Bulletin 717– this AD. Information may be emailed to: 9- 55A0012, Revision 1, dated April 11, 2018. document, call or email Petty Officer [email protected]. (ii) Reserved. First Class Ronald Sampert U.S. Coast (2) Before using any approved AMOC, (3) For service information identified in Guard; telephone 718–354–4197, email notify your appropriate principal inspector, this AD, contact Boeing Commercial [email protected]. or lacking a principal inspector, the manager Airplanes, Attention: Contractual & Data SUPPLEMENTARY INFORMATION: The Coast of the local flight standards district office/ Services (C&DS), 2600 Westminster Blvd., Guard will enforce the safety zones certificate holding district office. MC 110–SK57, Seal Beach, CA 90740–5600; (3) An AMOC that provides an acceptable telephone 562–797–1717; internet https:// listed in 33 CFR 165.160 on the level of safety may be used for any repair, www.myboeingfleet.com. specified dates and times as indicated in modification, or alteration required by this (4) You may view this service information Tables 1 and 2 below. This regulation AD if it is approved by the Boeing at FAA, Transport Standards Branch, 2200 was published in the Federal Register Commercial Airplanes Organization South 216th St., Des Moines, WA. For on November 9, 2011 (76 FR 69614).

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TABLE 1

1. 2018 Ellis Island Medals of Honor (N.E.C.O.), Liberty Island Safety • Launch site: A barge located in approximate position 40°41′16.5″ N Zone, 33 CFR 165.160(2.1). 074°02′23″ W (NAD 1983) located in Federal Anchorage 20–C, about 360 yards east of Liberty Island. This Safety Zone is a 360- yard radius from the barge. • Date: May 12, 2018. • Time: 11:30 p.m.–12:30 a.m. 2. Carnival Horizon Ship Christening, Pier 90 Hudson River Safety • Launch site: A barge located in approximate position 40°46′11.8″N, Zone, 33 CFR 165.160(5.4). 074°00′14.8″W (NAD 1983) about 375 yards west of Pier 90. This Safety Zone is a 360-yard radius from the barge. • Date: May 23, 2018. • Time: 10:00 p.m.–10:30 p.m. 3. Marist College O.A.C.A.C., Poughkeepsie, NY, Hudson River Safety • Launch site: A barge located in approximate position 41°42′24.50″ Zone, 33 CFR 165.160(5.13). N, 073°56′44.16″ W (NAD 1983), approximately 420 yards north of the Mid Hudson Bridge. This Safety Zone is a 300-yard radius from the barge. • Date: June 7, 2018. • Time: 8:30 p.m.–9:30 p.m. 4. Boston Consulting Group, Ellis Island Safety Zone, 33 CFR • Launch site: A barge located between Federal Anchorages 20–A 165.160(2.2). and 20–B, in approximate position 40°41′45″ N, 074°03′42″ W (NAD 1983), about 260 yards south of Ellis Island. This Safety Zone is a 240-yard radius from the barge. • Date: June 8, 2018. • Time: 10:00 p.m.–10:30 p.m.

TABLE 2

5. Newburgh Beacon Swim, Safety Zone, 33 CFR 165.160(1.2) ...... • Location: Participants will cross the Hudson River between New- burgh, to Beacon, New York approximately 1300 yards south of the Newburgh-Beacon bridges. This Safety Zone includes all waters within a 100-yard radius of each participating swimmer. • Date: July 28, 2018. • Time: 09:00 a.m.–11:30 a.m.

Under the provisions of 33 CFR ENVIRONMENTAL PROTECTION for the Northern Kentucky Area is 165.160, vessels may not enter the safety AGENCY consistent with the applicable zones unless given permission from the provisions of the Clean Air Act (CAA) COTP or a designated representative. 40 CFR Part 80 and EPA’s regulations. Spectator vessels may transit outside the [EPA–HQ–OAR–2018–0114; FRL–9977–50– DATES: The effective date for removal of safety zones but may not anchor, block, OAR] the Northern Kentucky Area from the loiter in, or impede the transit of other federal RFG program is July 1, 2018. vessels. The Coast Guard may be Removal of the Federal Reformulated assisted by other Federal, State, or local Gasoline Program from the Northern FOR FURTHER INFORMATION CONTACT: law enforcement agencies in enforcing Kentucky Portion of the Cincinnati- David Dickinson, Office of this regulation. Hamilton Ozone Maintenance Area Transportation and Air Quality, U.S. This document is issued under Environmental Protection Agency, 1200 AGENCY: authority of 33 CFR 165.160(a) and 5 Environmental Protection Pennsylvania Avenue, Washington, DC U.S.C. 552(a). In addition to the Agency (EPA). 20460; telephone number: (202) 343– publication of this document in the ACTION: Notification of final action on 9256; email address: dickinson.david@ Federal Register, the Coast Guard will petition. epa.gov or Rudy Kapichak, Office of provide mariners with advanced SUMMARY: The Environmental Protection Transportation and Air Quality, U.S. notification of enforcement periods via Agency (EPA) is taking final action in Environmental Protection Agency, (2000 the Local Notice to Mariners and marine announcing its approval of the petition Traverwood, Ann Arbor, MI 48105); information broadcasts. If the COTP by Kentucky to opt-out of the federal telephone number: 734–214–4574; determines that a safety zone need not reformulated gasoline (RFG) program email address: kapichak.rudolph@ be enforced for the full duration stated and remove the requirement to sell epa.gov. in this notification, a Broadcast Notice federal RFG for Boone, Campbell, and to Mariners may be used to grant general SUPPLEMENTARY INFORMATION: Kenton counties (the Northern Kentucky permission to enter the safety zone. Area), which are part of the Cincinnati- I. General Information Dated: April 27, 2018. Hamilton, Ohio-Kentucky-Indiana A. Does this action apply to me? M.H. Day, maintenance area for the 2008 ozone Captain, U.S. Coast Guard, Captain of the national ambient air quality standard Entities potentially affected by this Port New York. (NAAQS) (Cincinnati-Hamilton, OH- final action are fuel producers and [FR Doc. 2018–10447 Filed 5–15–18; 8:45 am] KY-IN Area). EPA has determined that distributors who do business in the BILLING CODE 9110–04–P this removal of the federal RFG program Northern Kentucky Area.

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Examples of potentially 1 baseline fuel, and to require the use of program. The petition must include regulated entities NAICS codes such reformulated gasoline in certain specific information on how, if at all, ‘‘covered areas.’’ The CAA defined the state has relied on RFG in a Petroleum refineries ...... 324110 certain nonattainment areas as ‘‘covered proposed or approved state 424710 areas’’ which are required to use implementation plan (SIP) or plan Gasoline Marketers and Dis- revision and, if RFG is relied upon, how tributors ...... 424720 reformulated gasoline (RFG) and Gasoline Retail Stations ...... 447110 provided other areas with an ability to the SIP will be revised to reflect the Gasoline Transporters ...... 484220 ‘‘opt-in’’ to the RFG program. CAA state’s opt-out from RFG. The opt-out 484230 section 211(k)(6) provides an regulations also provide that EPA will opportunity for an area classified as a notify the state in writing of the The above table is not intended to be Marginal, Moderate, Serious, or Severe Agency’s action on the petition and the exhaustive, but rather provides a guide ozone nonattainment area, or which is date the opt-out becomes effective (i.e., for readers regarding entities likely to be in the ozone transport region the date RFG is no longer required in regulated by this action. The table lists established by CAA section 184(a), to the affected area) when the petition is the types of entities of which EPA is ‘‘opt-in’’ to the RFG program upon approved. The opt-out regulations also aware that potentially could be affected application by the governor of the state provide that EPA will publish a Federal by this final action. Other types of (or his authorized representative) and Register notice announcing the approval entities not listed on the table could also subsequent action by EPA. of any opt-out petition and the effective be affected by this final action. To As in other RFG covered areas, RFG date of such opt-out. If a SIP revision is determine whether your organization opt-in areas are subject to the required, the effective date of EPA’s could be affected by this final action, prohibition in CAA section 211(k)(5) on approval of the opt-out can be no less you should carefully examine the the sale or dispensing by any person of than 90 days from the effective date of regulations in 40 CFR part 80, subpart conventional (non-RFG) gasoline to EPA’s approval of the revision to the SIP D—Reformulated Gasoline. If you have ultimate consumers in the covered area. that removes RFG as a control measure. questions regarding the applicability of The prohibition also includes the sale or See 40 CFR 80.72(c)(7). this action to a particular entity, see the dispensing by any refiner, blender, EPA determined in the RFG ‘‘Opt-out FOR FURTHER INFORMATION CONTACT importer, or marketer of conventional Rule’’ that it would not be necessary to section of this preamble. gasoline for resale in any covered areas, conduct a separate rulemaking for each without segregating the conventional future opt-out request. (See 61 FR 35673 B. How can I get copies of this document gasoline from RFG and clearly marking at 35675 (July 8, 1996)). EPA established and other related information? conventional gasoline as not for sale to a petition process to address, on a case- EPA has established a docket for this ultimate consumers in a covered area. by-case basis, future individual state action under Docket ID No. EPA–HQ– EPA first published regulations for the requests to opt-out of the RFG program. OAR–2018–0114. All documents in the RFG program on February 16, 1994 (59 The opt-out regulations establish clear docket are listed on the FR 7716). and objective criteria for EPA to apply. www.regulations.gov website. Although Kentucky voluntarily opted Boone, These regulatory criteria address when listed in the index, some information Campbell, and Kenton Counties into the a state’s petition is complete and the may not be publicly available, e.g., RFG program in 1995. Kentucky also appropriate transition time for opting Confidential Business Information (CBI) opted its portion of the Louisville ozone out. As EPA stated in the preamble to the Opt-out Rule, this application of or other information whose disclosure is area (Jefferson County and parts of regulatory criteria on a case-by-case restricted by statute. Certain other Bullitt and Oldham Counties) into the basis to individual opt-out requests does material, such as copyrighted material, RFG program; however, today’s action not require notice-and-comment is not placed on the internet and will be does not affect the use of RFG in the rulemaking, either under CAA section publicly available only in hard copy Louisville ozone area. A current listing 307(d) or the Administrative Procedure form. Publicly available docket of the RFG covered areas and a Act. Thus, in this action, EPA is materials are available electronically summary of RFG requirements can be applying the criteria and following the through www.regulations.gov. found on EPA’s website at: https:// procedures specified in its opt-out www.epa.gov/gasoline-standards/ II. Background regulations to approve Kentucky’s reformulated-gasoline. A. What is the RFG program? petition. B. Opt-Out Procedures The 1990 Clean Air Act (CAA) C. Opt-out of RFG for the Northern amendments established specific The RFG regulations (40 CFR 80.72— Kentucky Portion of the Cincinnati- requirements for the RFG program to Procedures for opting out of the covered Hamilton OH-KY-IN Maintenance Area reduce ozone levels in certain areas in areas) provide the process and criteria On April 18, 2017, Kentucky the country experiencing ground-level for a reasonable transition out of the submitted a petition to the EPA ozone or smog problems by reducing RFG program if a state decides to opt- Administrator requesting to opt-out 2 vehicle emissions of compounds that out. These opt-out regulations provide from the RFG program for Boone, form ozone, specifically volatile organic that the governor of the state must Campbell and Kenton counties (the compounds (VOCs). The 1990 CAA submit a petition to the Administrator Northern Kentucky Area).3 In order to amendments, specifically CAA section requesting to opt-out of the RFG fulfill the requirements of the RFG opt- 211(k)(5), directed EPA to issue out regulations, on September 13, 2018, 2 Pursuant to authority under CAA sections 211(c) Kentucky submitted a revision to its regulations that specify how gasoline and (k) and 301(a), EPA promulgated regulations at can be ‘‘reformulated’’ so as to result in 40 CFR 80.72 to provide criteria and general maintenance plan for the Northern significant reductions in vehicle procedures for states to opt-out of the RFG program emissions of ozone-forming and toxic where the state had previously voluntarily opted 3 The Secretary of Kentucky’s Energy and air pollutants relative to the 1990 into the program. The regulations were initially Environment Cabinet submitted the opt-out petition adopted on July 8, 1996 (61 FR 35673) (the RFG on behalf of the Commonwealth of Kentucky. A ‘‘Opt-out Rule’’); and were revised on October 20, copy of the opt-out petition is included in the 1 North American Industry Classification System. 1997 (62 FR 54552). docket.

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Kentucky Area to remove the emissions Area of the Cincinnati-Hamilton, OH- Washington, DC 20460–0001; main reductions associated with the use of KY-IN ozone maintenance area and is telephone number: (703) 305–7090; RFG in this area and to demonstrate that thereby removing the prohibition on the email address: [email protected]. the RFG opt-out would not interfere sale of conventional gasoline in that SUPPLEMENTARY INFORMATION: with the area’s ability to attain or area as of July 1, 2018. (See 40 CFR maintain the 2008 ozone NAAQS and 80.72). This opt-out effective date I. General Information any other NAAQS as required by CAA applies to retailers, wholesale A. Does this action apply to me? section 110(l). (See 40 CFR 80.72(b)). purchasers, consumers, refiners, EPA published a proposed approval of importers, and distributors. You may be potentially affected by the SIP revision on February 14, 2018 this action if you are an agricultural Dated: May 9, 2018. producer, food manufacturer, or (83 FR 6496) and a final approval of the E. Scott Pruitt, SIP revision on April 2, 2018 (83 FR pesticide manufacturer. The following Administrator. 13872). The final approval of the list of North American Industrial maintenance plan revision was effective [FR Doc. 2018–10456 Filed 5–15–18; 8:45 am] Classification System (NAICS) codes is upon publication, April 2, 2018. The BILLING CODE 6560–50–P not intended to be exhaustive, but rather RFG opt-out regulations provide that the provides a guide to help readers opt-out effective date shall be no less determine whether this document ENVIRONMENTAL PROTECTION than 90 days from the EPA SIP approval applies to them. Potentially affected AGENCY effective date. (See 40 CFR 80.72(c)(7)). entities may include: • EPA is unaware of any reason that the Crop production (NAICS code 111). 40 CFR Part 180 • effective date should be postponed, and Animal production (NAICS code therefore, is establishing an opt-out [EPA–HQ–OPP–2017–0032; FRL–9976–62] 112). • effective date of July 1, 2018 for the Food manufacturing (NAICS code Northern Kentucky Area. Tebuconazole; Pesticide Tolerances 311). • Pesticide manufacturing (NAICS As provided by the RFG Opt-out Rule AGENCY: Environmental Protection and the opt-out regulations, EPA will Agency (EPA). code 32532). publish a final rule at a later date to ACTION: Final rule. B. How can I get electronic access to remove the three counties in the other related information? Northern Kentucky Area from the list of SUMMARY: This regulation establishes RFG covered areas in 40 CFR 80.70 after tolerances for residues of tebuconazole You may access a frequently updated the effective date of the opt-out. EPA in or on ginseng, fresh at 0.15 parts per electronic version of EPA’s tolerance believes that it is prudent to complete million (ppm) and ginseng, dried at 0.40 regulations at 40 CFR part 180 through this ministerial exercise to revise the list ppm. Bayer CropScience LP, requested the Government Printing Office’s e-CFR of covered areas in the Code of Federal these tolerances under the Federal Food, site at http://www.ecfr.gov/cgi-bin/text- Regulations after the effective date of Drug, and Cosmetic Act (FFDCA). idx?&c=ecfr&tpl=/ecfrbrowse/Title40/ 40tab_02.tpl. the opt-out. DATES: This regulation is effective May III. Action 16, 2018. Objections and requests for C. How can I file an objection or hearing hearings must be received on or before request? EPA is approving Kentucky’s petition July 16, 2018, and must be filed in Under FFDCA section 408(g), 21 because it contained the information accordance with the instructions U.S.C. 346a, any person may file an required by 40 CFR 80.72, including provided in 40 CFR part 178 (see also that Kentucky revised the approved objection to any aspect of this regulation Unit I.C. of the SUPPLEMENTARY maintenance plan for the 2008 ozone and may also request a hearing on those INFORMATION). NAAQS for the Northern Kentucky Area objections. You must file your objection to remove the emissions reductions ADDRESSES: The docket for this action, or request a hearing on this regulation associated with RFG. EPA is also identified by docket identification (ID) in accordance with the instructions determining the opt-out effective date number EPA–HQ–OPP–2017–0032, is provided in 40 CFR part 178. To ensure by applying the criteria in 40 CFR available at http://www.regulations.gov proper receipt by EPA, you must 80.72(c)(7). As discussed in Section II.A. or at the Office of Pesticide Programs identify docket ID number EPA–HQ– of this document, the opt-out Regulatory Public Docket (OPP Docket) OPP–2017–0032 in the subject line on regulations require that if a state in the Environmental Protection Agency the first page of your submission. All included RFG as a control measure in an Docket Center (EPA/DC), West William objections and requests for a hearing approved SIP, the state must revise the Jefferson Clinton Bldg., Rm. 3334, 1301 must be in writing, and must be SIP, reflecting the removal of RFG as a Constitution Ave. NW, Washington, DC received by the Hearing Clerk on or control measure before an opt-out can 20460–0001. The Public Reading Room before July 16, 2018. Addresses for mail be effective and the opt-out cannot be is open from 8:30 a.m. to 4:30 p.m., and hand delivery of objections and effective less than 90 days after the Monday through Friday, excluding legal hearing requests are provided in 40 CFR effective date of the approval of the SIP holidays. The telephone number for the 178.25(b). revision. EPA published a final approval Public Reading Room is (202) 566–1744, In addition to filing an objection or of Kentucky’s maintenance plan and the telephone number for the OPP hearing request with the Hearing Clerk revision and noninterference Docket is (703) 305–5805. Please review as described in 40 CFR part 178, please demonstration on April 2, 2018 (83 FR the visitor instructions and additional submit a copy of the filing (excluding 13872). The final approval was effective information about the docket available any Confidential Business Information upon publication. at http://www.epa.gov/dockets. (CBI)) for inclusion in the public docket. In summary, EPA is today notifying FOR FURTHER INFORMATION CONTACT: Information not marked confidential the public that it has applied its Michael Goodis, Director, Registration pursuant to 40 CFR part 2 may be regulatory criteria to approve the Division (7505P), Office of Pesticide disclosed publicly by EPA without prior petition by Kentucky to opt-out of the Programs, Environmental Protection notice. Submit the non-CBI copy of your RFG program for the Northern Kentucky Agency, 1200 Pennsylvania Ave. NW, objection or hearing request, identified

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by docket ID number EPA–HQ–OPP– 408(b)(2)(C) of FFDCA requires EPA to analysis of the doses in each 2017–0032, by one of the following give special consideration to exposure toxicological study to determine the methods: of infants and children to the pesticide dose at which no adverse effects are • Federal eRulemaking Portal: http:// chemical residue in establishing a observed (the NOAEL) and the lowest www.regulations.gov. Follow the online tolerance and to ‘‘ensure that there is a dose at which adverse effects of concern instructions for submitting comments. reasonable certainty that no harm will are identified (the LOAEL). Uncertainty/ Do not submit electronically any result to infants and children from safety factors are used in conjunction information you consider to be CBI or aggregate exposure to the pesticide with the POD to calculate a safe other information whose disclosure is chemical residue. . . .’’ exposure level—generally referred to as restricted by statute. Consistent with FFDCA section a population-adjusted dose (PAD) or a • Mail: OPP Docket, Environmental 408(b)(2)(D), and the factors specified in reference dose (RfD)—and a safe margin Protection Agency Docket Center (EPA/ FFDCA section 408(b)(2)(D), EPA has of exposure (MOE). For non-threshold DC), (28221T), 1200 Pennsylvania Ave. reviewed the available scientific data risks, the Agency assumes that any NW, Washington, DC 20460–0001. and other relevant information in amount of exposure will lead to some • Hand Delivery: To make special support of this action. EPA has degree of risk. Thus, the Agency arrangements for hand delivery or sufficient data to assess the hazards of estimates risk in terms of the probability delivery of boxed information, please and to make a determination on of an occurrence of the adverse effect follow the instructions at http:// aggregate exposure for tebuconazole expected in a lifetime. For more www.epa.gov/dockets/contacts.html. including exposure resulting from the information on the general principles Additional instructions on commenting tolerances established by this action. EPA uses in risk characterization and a or visiting the docket, along with more EPA’s assessment of exposures and risks complete description of the risk information about dockets generally, is associated with tebuconazole follows. assessment process, see http:// available at http://www.epa.gov/ www2.epa.gov/pesticide-science-and- A. Toxicological Profile dockets. assessing-pesticide-risks/assessing- EPA has evaluated the available II. Summary of Petitioned-For human-health-risk-pesticides. toxicity data and considered its validity, Tolerance A summary of the toxicological completeness, and reliability as well as endpoints for tebuconazole used for In the Federal Register of April 10, the relationship of the results of the human risk assessment can be found in 2017 (82 FR 17175) (FRL–9959–61), studies to human risk. EPA has also the preamble to the final rule published EPA issued a document pursuant to considered available information in the Federal Register on November 15, FFDCA section 408(d)(3), 21 U.S.C. concerning the variability of the 2013. 346a(d)(3), announcing the filing of a sensitivities of major identifiable C. Exposure Assessment pesticide petition (PP 6E8534) by Bayer subgroups of consumers, including CropScience LP, 2 T.W. Alexander infants and children. 1. Dietary exposure from food and Drive, P.O. Box 12014, Research The toxicological profile remains feed uses. In evaluating dietary Triangle Park, NC 27709. The petition unchanged from the discussion exposure to tebuconazole, EPA requested that 40 CFR part 180 be contained in the final rule published in considered exposure under the amended by establishing tolerances for the Federal Register on November 15, petitioned-for tolerances as well as all residues of tebuconazole, a-[2-(4- 2013 (78 FR 68741) (FRL–9392–1), existing tebuconazole tolerances in 40 Chlorophenyl)ethyl]-a-(1,1- which is hereby incorporated into this CFR 180.474. EPA assessed dietary dimethylethyl)-1H-1,2,4-triazole-1- document. exposures from tebuconazole in food as ethanol, in or on ginseng, fresh at 0.15 Specific information on the studies follows: ppm and ginseng, dried/red at 0.4 ppm. received and the nature of the adverse i. Acute exposure. Quantitative acute This document referenced a summary of effects caused by tebuconazole as well dietary exposure and risk assessments the petition prepared by Bayer as the no-observed-adverse-effect-level are performed for a food-use pesticide, CropScience LP, the registrant, which is (NOAEL) and the lowest-observed- if a toxicological study has indicated the available in the docket, http:// adverse-effect-level (LOAEL) from the possibility of an effect of concern www.regulations.gov. No comments toxicity studies can be found at http:// occurring as a result of a 1-day or single were received in response to the notice www.regulations.gov in document exposure. Such effects were identified of filing. Human Health Aggregate Risk for tebuconazole. In estimating acute Assessment for Establishment of a dietary exposure, EPA used food III. Aggregate Risk Assessment and Permanent Tolerance Without U.S. consumption information from the Determination of Safety Registration for Residues in/on Ginseng United States Department of Agriculture Section 408(b)(2)(A)(i) of FFDCA at pages 24–26 in docket ID number (USDA) 2003–2008 National Health and allows EPA to establish a tolerance (the EPA–HQ–OPP–2017–0032. Nutrition Examination Survey, What We legal limit for a pesticide chemical Eat in America, (NHANES/WWEIA). As residue in or on a food) only if EPA B. Toxicological Points of Departure/ to residue levels in food, a somewhat determines that the tolerance is ‘‘safe.’’ Levels of Concern refined acute probalistic dietary Section 408(b)(2)(A)(ii) of FFDCA Once a pesticide’s toxicological exposure assessment was conducted for defines ‘‘safe’’ to mean that ‘‘there is a profile is determined, EPA identifies all existing and proposed food uses of reasonable certainty that no harm will toxicological points of departure (POD) tebuconazole. For the acute assessment, result from aggregate exposure to the and levels of concern to use in anticipated residues for grapes, grape pesticide chemical residue, including evaluating the risk posed by human juice, and peaches were derived using all anticipated dietary exposures and all exposure to the pesticide. For hazards the latest USDA Pesticide Data Program other exposures for which there is that have a threshold below which there (PDP) monitoring data. Anticipated reliable information.’’ This includes is no appreciable risk, the toxicological residues for all other registered and exposure through drinking water and in POD is used as the basis for derivation proposed food commodities were based residential settings, but does not include of reference values for risk assessment. on field trial data. Anticipated residues occupational exposure. Section PODs are developed based on a careful for all current uses were further refined

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using percent crop treated (%CT) data EPA may require registrants to submit The Agency believes that the three where available. Percentage of imported data on PCT. conditions discussed in Unit III.C.1.iv orange juice and oranges were also For the acute assessment, the Agency have been met. With respect to provided. Default DEEM (ver. 7.81) and estimated the PCT for existing uses as Condition a, PCT estimates are derived empirical processing factors were follows: Almonds 15%; apples 2.5%; from Federal and private market survey assumed. apricots 20%; asparagus 30%; barley data, which are reliable and have a valid ii. Chronic exposure. In conducting 2.5%; beans green 2.5%; cantaloupes basis. The Agency is reasonably certain the chronic dietary exposure assessment 10%; cherries 45%; corn 2.5%; cotton that the percentage of the food treated EPA used the food consumption data 2.5%; cucumbers 2.5%; dry beans/peas is not likely to be an underestimation. from the USDA 2003–2008 (NHANES/ 5%; garlic 95%; grapes 40%; nectarines As to Conditions b and c, regional WWEIA). As to residue levels in food, 30%; oats 2.5%; onions 5%; peaches consumption information and EPA used field trial data, USDA PDP 25%; peanuts 65%; pears 5%; pecans consumption information for significant data, assumed PCT data levels and used 25%; plums/prunes 5%; soybeans 2.5%; subpopulations is taken into account empirical DEEM (ver. 7.81) default squash 5%; sweet corn 5%; and wheat through EPA’s computer-based model processing factors as described in Unit 25%. for evaluating the exposure of III.C.iv. For the chronic assessment, the significant subpopulations including iii. Cancer. Based on the data Agency estimated the PCT for existing several regional groups. Use of this summarized in Unit III.A., EPA has uses as follows: Almonds 5%; apples consumption information in EPA’s risk concluded that a nonlinear RfD 2.5%; apricots 10%; asparagus 5%; assessment process ensures that EPA’s approach is appropriate for assessing barley 2.5%; beans green 1%; exposure estimate does not understate cancer risk to tebuconazole. The chronic cantaloupes 2.5%; cherries 25%; corn exposure for any significant risk assessment or RfD approach is 1%; cotton 1%; cucumbers 1%; dry subpopulation group and allows the considered to be protective of any beans/peas 2.5%; garlic 65%; grapes Agency to be reasonably certain that no cancer effects; therefore, a separate 25%; nectarines 20%; oats 2.5%; onions regional population is exposed to cancer assessment was not conducted. 5%; peaches 10%; peanuts 45%; pears residue levels higher than those 5%; pecans 10%; pistachios 5%; plums/ iv. Anticipated residue and percent estimated by the Agency. Other than the prunes 2.5%; pumpkins 2.5%; soybeans crop treated (PCT) information. Section data available through national food 1%; squash 2.5%; sweet corn 2.5%; 408(b)(2)(E) of FFDCA authorizes EPA consumption surveys, EPA does not walnuts 2.5%; watermelons 15%; and to use available data and information on have available reliable information on wheat 5%. the anticipated residue levels of the regional consumption of food to The following estimated percent which tebuconazole may be applied in pesticide residues in food and the actual import estimates for the import oranges levels of pesticide residues that have a particular area. were used: Acute: Orange 16%; and 2. Dietary exposure from drinking been measured in food. If EPA relies on orange juice 58%; Chronic: orange 12%; water. The Agency used screening level such information, EPA must require orange juice 46%. For all other crops water exposure models in the dietary pursuant to FFDCA section 408(f)(1) not listed above, EPA assumed that exposure analysis and risk assessment that data be provided 5 years after the 100% of the crop was treated. for tebuconazole in drinking water. tolerance is established, modified, or In most cases, EPA uses available data These simulation models take into left in effect, demonstrating that the from United States Department of account data on the physical, chemical, levels in food are not above the levels Agriculture/National Agricultural and fate/transport characteristics of anticipated. For the present action, EPA Statistics Service (USDA/NASS), tebuconazole. Further information will issue such data call-ins as are proprietary market surveys, and regarding EPA drinking water models required by FFDCA section 408(b)(2)(E) California Department of Pesticide used in pesticide exposure assessment and authorized under FFDCA section Regulation (DPR) Pesticide Use can be found at http://www2.epa.gov/ 408(f)(1). Data will be required to be Reporting (PUR) for the chemical/crop pesticide-science-and-assessing- submitted no later than 5 years from the combination for the most recent 10 pesticide-risks/about-water-exposure- date of issuance of these tolerances. years. EPA uses an average PCT for models-used-pesticide. Section 408(b)(2)(F) of FFDCA states chronic dietary risk analysis and a Based on the Pesticide Root Zone that the Agency may use data on the maximum PCT for acute dietary risk Model/Exposure Analysis Modeling actual percent of food treated for analysis. The average PCT figure for System (PRZM/EXAMS) and Screening assessing chronic dietary risk only if: each existing use is derived by Concentration in Ground Water (SCI– • Condition a: The data used are combining available public and private GROW) models the estimated drinking reliable and provide a valid basis to market survey data for that use, water concentrations (EDWCs) of show what percentage of the food averaging across all observations, and tebuconazole for acute exposures are derived from such crop is likely to rounding to the nearest 5%, except for estimated to be 87.7 parts per billion contain the pesticide residue. those situations in which the average (ppb) for surface water and 1.56 ppb for • Condition b: The exposure estimate PCT is less than 2.5% or 1%. In those ground water and for chronic exposures does not underestimate exposure for any cases, EPA uses 2.5% or 1%, are estimated to be 68.8 ppb for surface significant subpopulation group. respectively, as the average PCT value. water and 1.56 ppb for ground water. • Condition c: Data are available on The maximum PCT figure is the highest Modeled estimates of drinking water pesticide use and food consumption in observed maximum value reported concentrations were previously entered a particular area, the exposure estimate within the recent 10 years of available into the dietary exposure model. For does not understate exposure for the public and private market survey data acute dietary risk assessment, a population in such area. for the existing use and rounded up to distribution of 30-year daily surface In addition, the Agency must provide the nearest multiple of 5%, except in water concentration was estimated for for periodic evaluation of any estimates those situations in which the maximum the EDWCs of tebuconazole. For chronic used. To provide for the periodic PCT is less than 2.5%, in which case, dietary risk assessment, the water evaluation of the estimate of PCT as the Agency uses 2.5% as the maximum concentration of value 68.8 ppb was required by FFDCA section 408(b)(2)(F), PCT. previously used to assess the

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contribution to drinking water. Because turf. In addition, the agency updated the tebuconazole and any other substances. the use of tebuconazole on ginseng is residential standard operating Although the conazoles produce 1,2,4 not associated with a U.S. registration, procedures and body weights to be used triazole and its acid-conjugated there is no impact on drinking water in all human health assessments. metabolites (triazolylalanine and residues. As a result, the Agency is Therefore, the existing residential use triazolylacetic acid), 1,2,4 triazole and relying on the drinking water residues patterns were reassessed using the its acid-conjugated metabolites do not used in the dietary risk assessment updated procedures and data, since the contribute to the toxicity of the parent previously provided, ‘‘Drinking water residential exposures can impact the conazoles. The Agency has assessed the and ecological risk for new use of aggregate assessment for tebuconazole. aggregate risks from the 1,2,4 triazole tebuconazole/fluoxastrobin combination The TTR study is reviewed in a separate and its acid-conjugated metabolites for turf and ornamental use’’, which can HED memorandum available in the (triazolylalanine and triazolylacetic be found at http://regulations.gov, under docket EPA–HQ–OPP–2017–0032. acid) separately. Tebuconazole does not docket ID number EPA–HQ–OPP–2013– 4. Cumulative effects from substances appear to produce any other toxic 0653–0007. with a common mechanism of toxicity. metabolite produced by other 3. From non-dietary exposure. The Section 408(b)(2)(D)(v) of FFDCA substances. For the purposes of this term ‘‘residential exposure’’ is used in requires that, when considering whether action, therefore, EPA has not assumed this document to refer to non- to establish, modify, or revoke a that tebuconazole has a common occupational, non-dietary exposure tolerance, the Agency consider mechanism of toxicity with other (e.g., for lawn and garden pest control, ‘‘available information’’ concerning the substances. indoor pest control, termiticides, and cumulative effects of a particular flea and tick control on pets). pesticide’s residues and ‘‘other D. Safety Factor for Infants and Tebuconazole is currently registered for substances that have a common Children the following uses that could result in mechanism of toxicity.’’ 1. In general. Section 408(b)(2)(C) of residential exposures: Turf, flower Tebuconazole is a member of the FFDCA provides that EPA shall apply gardens, trees, ornamentals, and conazole class of fungicides containing an additional tenfold (10X) margin of pressure-treated wood. the 1,2,4-triazole moiety. Although safety for infants and children in the EPA assessed residential exposure conazoles act similarly in plants (fungi) case of threshold effects to account for using the following assumptions: For by inhibiting ergosterol biosynthesis, prenatal and postnatal toxicity and the residential handlers, exposure is there is not necessarily a relationship completeness of the database on toxicity expected to be short-term. Intermediate- between their pesticidal activity and and exposure unless EPA determines term exposures are not likely because of their mechanism of toxicity in based on reliable data that a different the intermittent nature of applications mammals. Structural similarities do not margin of safety will be safe for infants by homeowners. For post-application constitute a common mechanism of and children. This additional margin of exposures, the Agency assessed toxicity. Evidence is needed to establish safety is commonly referred to as the residential dermal and incidental oral that the chemicals operate by the same, FQPA Safety Factor (SF). In applying post-application exposure for adults and or essentially the same, sequence of this provision, EPA either retains the children golfing, working in gardens, major biochemical events. In conazoles, default value of 10X, or uses a different and performing physical activities on however, a variable pattern of additional safety factor when reliable pressure-treated wood after application toxicological responses is found; some data available to EPA support the choice of tebuconazole may receive exposure to are hepatotoxic and hepatocarcinogenic of a different factor. tebuconazole residues. Post-application in mice. Some induce thyroid tumors in 2. Prenatal and postnatal sensitivity. exposure is expected to be short-term in rats. Some induce developmental, The toxicity database for tebuconazole duration. For assessment of both reproductive, and neurological effects in includes prenatal developmental handler and post-application exposures, rodents. Furthermore, the conazoles toxicity studies in three species (mouse, dermal and inhalation exposures were produce a diverse range of biochemical rat, and rabbit), a reproductive toxicity combined since the same endpoint and events including altered cholesterol study in rats, and a developmental point of departure (POD) is used for levels, stress responses, and altered neurotoxicity study in rats. The data both routes of exposure. DNA methylation. It is not clearly from prenatal developmental toxicity Further information regarding EPA understood whether these biochemical studies in mice and a developmental standard assumptions and generic events are directly connected to their neurotoxicity study in rats indicated an inputs for residential exposures may be toxicological outcomes. Thus, there is increased quantitative and qualitative found at http://www.epa.gov/pesticide- currently no conclusive data to indicate susceptibility following in utero science-and-assessing-pesticide-risks/ that conazoles share common exposure to tebuconazole. The NOAELs/ standard-operating-procedures- mechanisms of toxicity, and EPA is not LOAELs for developmental toxicity in residential-pesticide. following a cumulative risk approach these studies were found at dose levels Because no new residential uses are based on a common mechanism of less than those that induce maternal being requested at this time, an updated toxicity for the conazoles. For toxicity or in the presence of slight residential exposure assessment would information regarding EPA’s procedures maternal toxicity. There was no not normally be required. Each of the for cumulating effects from substances indication of increased quantitative existing residential use patterns had found to have a common mechanism of susceptibility in the rat and rabbit been previously assessed and the toxicity, see EPA’s website at http:// developmental toxicity studies, the resulting exposures and risk estimates www.epa.gov/pesticide-science-and- NOAELs for developmental toxicity did not exceed the agency’s LOC. Since assessing-pesticide-risks/cumulative- were comparable to or higher than the those assessments were conducted, assessment-risk-pesticides. NOAELs for maternal toxicity. In all however, a turf transferrable residue Unlike other pesticides for which EPA three species, however, there was (TTR) study required by the Agency in has followed a cumulative risk approach indication of increased qualitative 2013 was submitted to support a based on a common mechanism of susceptibility. For most studies, reevaluation of the aggregate exposures toxicity, EPA has not made a common minimal maternal toxicity was seen at from the registered use on golf course mechanism of toxicity finding as to the LOAEL (consisting of increases in

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hematological findings in mice, analysis of the datasets relevant to the course turf, and treated wood products), increased liver weights in rabbits and adverse offspring effects (decreased potential exposure resulting from rats, and decreased body weight gain/ body weight and brain weight) seen at tebuconazole outdoor uses in the food consumption in rats) and did not the LOAEL in the developmental residential setting was assessed using increase substantially in severity at neurotoxicity (DNT) study was screening-level inputs that assumes an higher doses. However, there was more conducted. All of the BMDLs adult or child will come in contact with concern for the developmental effects at (benchmark dose lower limit) modeled turf and other surfaces immediately each LOAEL, which included increases successfully on statistically significant after application. in runts, increased fetal loss, and effects were 1–2X lower than the E. Aggregate Risks and Determination of malformations in mice; increased LOAEL. Therefore, an extrapolated Safety skeletal variations in rats; and increased NOAEL is not likely to be 10X lower fetal loss and frank malformations in than the LOAEL and that use of an UFL EPA determines whether acute and rabbits. Additionally, more severe of 3X would not underestimate risk. chronic dietary pesticide exposures are developmental effects (including frank Using an FQPA SF of 3X in risk safe by comparing aggregate exposure malformations) were seen at higher assessment results in a NOAEL of 2.9 estimates to the acute PAD (aPAD) and doses in mice, rats and rabbits. In the mg/kg/day (8.8 mg/kg/day ÷ 3X = 2.9 chronic PAD (cPAD). For linear cancer developmental neurotoxicity study, mg/kg/day), which is further supported risks, EPA calculates the lifetime maternal toxicity was seen only at the by other studies in the tebuconazole probability of acquiring cancer given the high dose (decreased body weights, toxicity database, with the lowest estimated aggregate exposure. Short-, body weight gains, and food NOAELs being 3 and 2.9 mg/kg/day, intermediate-, and chronic-term risks consumption, prolonged gestation and from a developmental toxicity study in are evaluated by comparing the dystocia as well as decreased offspring mice and a chronic toxicity study in estimated aggregate food, water, and survival). dogs, respectively (respective LOAELs residential exposure to the appropriate 3. Conclusion. EPA has determined 10 and 4.5 mg/kg/day). PODs to ensure that an adequate MOE that reliable data show the safety of iii. There were increases in qualitative exists. infants and children would be susceptibility in the prenatal 1. Acute risk. Using the exposure adequately protected if the FQPA SF developmental studies in rats, mice, and assumptions discussed in this unit for were reduced to 3X. That decision is rabbits and in quantitative susceptibility acute exposure, the acute dietary based on the following findings: in mice and developmental exposure from food and water to i. The toxicity database for neurotoxicity in rats. However, the tebuconazole will occupy 77% of the tebuconazole is complete. toxicity endpoint observed in aPAD for all infants (< 1 year old), the ii. Tebuconazole demonstrated developmental neurotoxicity study in population group receiving the greatest neurotoxicity in the acute neurotoxicity rats was employed to establish the point exposure. study in rats; the lowest observable of departure (POD) for risk assessment 2. Chronic risk. Using the exposure adverse effect level (LOAEL) of 100 mg/ for all exposure scenarios. This toxicity assumptions described in this unit for kg/day was based on increased motor endpoint was the most sensitive one, chronic exposure, EPA has concluded activity in male and female rats and and the resulting POD was protective of that chronic exposure to tebuconazole decreased footsplay in female rats. all adverse effects found in the from food and water will utilize 22% of Although the subchronic neurotoxicity tebuconazole toxicity database. the cPAD for all infants (< 1 year old) study was unacceptable since there was Therefore, the degree of concern for the population group receiving the inadequate dosing, a new subchronic residual uncertainties for prenatal and/ greatest exposure. Based on the neurotoxicity study is not needed to or postnatal toxicity was low. explanation in Unit III.C.3., regarding evaluate levels at which subchronic iv. There are no residual uncertainties residential use patterns, chronic neurotoxicity might occur; neurotoxicity identified in the exposure databases. residential exposure to residues of was seen in other studies in the EPA utilized a tiered approach in tebuconazole is not expected. database at considerably lower doses estimating exposure to tebuconazole. 3. Short-term risk and Intermediate- than those tested in the subchronic While some refinements were term risk. Short-term and intermediate- neurotoxicity study. Malformations incorporated into dietary and residential term risk aggregate exposure takes into indicative of nervous system exposure calculations, EPA is confident account short-term residential exposure development disruption were seen in that the aggregate risk from exposure to and intermediate-term residential developmental toxicity studies in mice, tebuconazole in food, water and exposure plus chronic exposure to food rats, and rabbits. Neurotoxicity was also residential pathways will not be and water (considered to be a seen in the rat developmental underestimated. The acute and chronic background exposure level). neurotoxicity study as decreases in body dietary exposure assessments Tebuconazole is currently registered for weights, decreases in absolute brain incorporated somewhat refined uses that could result in short-term weights, changes in brain morphometric estimates of residues in food residential exposure that could co-occur parameters, and decreases in motor commodities from reliable field trial with background dietary exposure over activity in offspring at the LOAEL of 8.8 data reflecting maximum use the short-term (1–30 days), whereas co- mg/kg/day; a no observable adverse conditions, recent monitoring data from occurring intermediate exposures (1–6 effect level (NOAEL) could not be USDA’s Pesticide Data Program (PDP), months) are less likely. However, since established. The LOAEL (8.8 mg/kg/day) and relevant market survey data on the the POD employed for both durations was employed as the point of departure percentage of crops treated. Estimated are the same, the aggregate assessments (POD) for assessing risk for all exposure concentrations of tebuconazole in address both exposure durations. Using scenarios, and an FQPA SF of 3X has drinking water were incorporated into the exposure assumptions described in been retained as an uncertainty factor the chronic dietary analysis as the upper this unit for short-term exposures, EPA for use of a LOAEL to extrapolate a bound point estimate and into the has concluded that residential NOAEL (UFL). To determine whether probabilistic acute dietary analysis as a exposures result in aggregate MOEs of the UFL is protective of any potential distribution. For the residential 580 for adults, 600 for youths 11 to <16 neurotoxicity, a Benchmark Dose (BMD) exposure pathways (ornamentals, golf years old, and children 6 to <11 years

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500 for the activity of golfing and 330 6. Determination of safety. Based on Chlorophenyl)ethyl]-a-(1,1- for children (1–2 years old) engaging in these risk assessments, EPA concludes dimethylethyl)-1H-1,2,4-triazole-1- activities on pressure treated wood that there is a reasonable certainty that ethanol, in or on ginseng, dried at 0.40 surfaces. Because EPA’s level of concern no harm will result to the general ppm and ginseng, fresh at 0.15 ppm. (LOC) for tebuconazole is a MOE of 300 population, or to infants and children VI. Statutory and Executive Order or below, these MOEs are not of from aggregate exposure to tebuconazole Reviews concern. Therefore, aggregate risk residues. estimates for all examined population This action establishes tolerances IV. Other Considerations subgroups were not of concern to the under FFDCA section 408(d) in Agency. A. Analytical Enforcement Methodology response to a petition submitted to the Agency. The Office of Management and 4. Aggregate cancer risk for U.S. Adequate enforcement methodology Budget (OMB) has exempted these types population. Based on the Agency’s (Gas Chromatography/Nitrogen of actions from review under Executive determination that the chronic risk Phosphorus Detector (GC/NPD) is Order 12866, entitled ‘‘Regulatory assessment will be protective of any available to enforce the tolerance Planning and Review’’ (58 FR 51735, cancer effects, a separate quantitative expression. cancer risk assessment was not The method may be requested from: October 4, 1993). Because this action conducted. Because there is no chronic Chief, Analytical Chemistry Branch, has been exempted from review under risk of concern from aggregate exposure Environmental Science Center, 701 Executive Order 12866, this action is to tebuconazole, the Agency concludes Mapes Rd., Ft. Meade, MD 20755–5350; not subject to Executive Order 13211, that aggregate exposure to tebuconazole telephone number: (410) 305–2905; entitled ‘‘Actions Concerning will not result in cancer risks of email address: residuemethods@ Regulations That Significantly Affect concern. epa.gov. Energy Supply, Distribution, or Use’’ (66 5. Aggregate Assessment for Free FR 28355, May 22, 2001); Executive Triazole & its Conjugates. The conazole B. International Residue Limits Order 13045, entitled ‘‘Protection of class of compounds, which includes In making its tolerance decisions, EPA Children from Environmental Health tebuconazole, can form the common seeks to harmonize U.S. tolerances with Risks and Safety Risks’’ (62 FR 19885, metabolite 1,2,4-triazole and two international standards whenever April 23, 1997); or Executive Order triazole conjugates (triazolylalanine and possible, consistent with U.S. food 13771, entitled ‘‘Reducing Regulations triazolylacetic acid). To support existing safety standards and agricultural and Controlling Regulatory Costs’’ (82 tolerances and to establish new practices. EPA considers the FR 9339, February 3, 2017). This action tolerances for triazole-containing international maximum residue limits does not contain any information pesticides, including tebucaonazole, (MRLs) established by the Codex collections subject to OMB approval EPA conducted a human health risk Alimentarius Commission (Codex), as under the Paperwork Reduction Act assessment for exposure to 1,2,4- required by FFDCA section 408(b)(4). (PRA) (44 U.S.C. 3501 et seq.), nor does triazole, triazolylalanine, and The Codex Alimentarius is a joint it require any special considerations triazolylacetic acid resulting from the United Nations Food and Agriculture under Executive Order 12898, entitled use of all current and pending uses of Organization/World Health ‘‘Federal Actions to Address any triazole-containing fungicide. The Organization food standards program, Environmental Justice in Minority risk assessment is a highly conservative, and it is recognized as an international Populations and Low-Income screening-level evaluation in terms of food safety standards-setting Populations’’ (59 FR 7629, February 16, hazards associated with common organization in trade agreements to 1994). metabolites (e.g., use of a maximum which the United States is a party. EPA Since tolerances and exemptions that combination of uncertainty factors) and may establish a tolerance that is are established on the basis of a petition potential dietary and non-dietary different from a Codex MRL; however, under FFDCA section 408(d), such as exposures (i.e., high end estimates of FFDCA section 408(b)(4) requires that the tolerance in this final rule, do not both dietary and non-dietary exposures). EPA explain the reasons for departing require the issuance of a proposed rule, The Agency retained a 3X for the from the Codex level. the requirements of the Regulatory LOAEL to NOAEL safety factor when The Codex has established MRLs for Flexibility Act (RFA) (5 U.S.C. 601 et the reproduction study was used. In tebuconazole in or on ginseng and seq.), do not apply. addition, the Agency retained a 10X for ginseng, dried at 0.15 ppm and 0.40 This action directly regulates growers, the lack of studies including a ppm, respectively. These MRLs are the food processors, food handlers, and food developmental neurotoxicity (DNT) same as the tolerances established for retailers, not States or tribes, nor does study. The assessment includes tebuconazole in the United States. this action alter the relationships or evaluations of risks for various distribution of power and subgroups, including those comprised C. Revisions to Petitioned-For responsibilities established by Congress of infants and children. The Agency’s Tolerances in the preemption provisions of FFDCA complete risk assessment is found in the For dried ginseng, the Agency is section 408(n)(4). As such, the Agency propiconazole reregistration docket at revising the commodity definition for has determined that this action will not http://www.regulations.gov, Docket the requested tolerance to reflect the have a substantial direct effect on States Identification (ID) Number EPA–HQ– correct commodity vocabulary currently or tribal governments, on the OPP–2005–0497. The Agency’s latest used by the Agency. Specifically, relationship between the national updated aggregate risk assessment for ginseng dried/red was changed to government and the States or tribal the triazole-containing metabolites was ginseng, dried. Additionally, the Agency governments, or on the distribution of finalized on July 18, 2017 and includes is revising the significant figures for the power and responsibilities among the the proposed new uses of tebuconazole. tolerance level based on current policy. various levels of government or between That assessment concluded that the Federal Government and Indian aggregate exposure to the triazole V. Conclusion tribes. Thus, the Agency has determined metabolites does not exceed the Therefore, tolerances are established that Executive Order 13132, entitled Agency’s level of concern. for residues of tebuconazole, a-[2-(4- ‘‘Federalism’’ (64 FR 43255, August 10,

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1999) and Executive Order 13175, * * * * * 26 to the FMP in the Federal Register entitled ‘‘Consultation and Coordination [FR Doc. 2018–10345 Filed 5–15–18; 8:45 am] (82 FR 17387). That final rule adjusted with Indian Tribal Governments’’ (65 FR BILLING CODE 6560–50–P the management boundaries, zones, and 67249, November 9, 2000) do not apply annual catch limits for Gulf migratory to this action. In addition, this action group king mackerel (Gulf king does not impose any enforceable duty or DEPARTMENT OF COMMERCE mackerel). The commercial quota for the contain any unfunded mandate as Gulf king mackerel in the Gulf northern described under Title II of the Unfunded National Oceanic and Atmospheric zone is 511,200 lb (231,876 kg) for the Mandates Reform Act (UMRA) (2 U.S.C. Administration current fishing year, October 1, 2017, 1501 et seq.). through September 30, 2018 (50 CFR This action does not involve any 50 CFR Part 622 622.384(b)(1)(ii)). technical standards that would require [Docket No. 160426363–7275–02] The Gulf king mackerel northern zone Agency consideration of voluntary is located in the EEZ between a line at ° ′ consensus standards pursuant to section RIN 0648–XF920 87 31.6 W long., which is a line extending due south of the state 12(d) of the National Technology Coastal Migratory Pelagic Resources Transfer and Advancement Act boundary of Alabama and Florida, and of the Gulf of Mexico and Atlantic ° ′ (NTTAA) (15 U.S.C. 272 note). a line at 26 19.48 N lat., which is a line Region; 2017–2018 Commercial extending west from the boundary of VII. Congressional Review Act Closure for King Mackerel in the Gulf Lee and Collier Counties in southwest of Mexico Northern Zone Pursuant to the Congressional Review Florida. Act (5 U.S.C. 801 et seq.), EPA will AGENCY: National Marine Fisheries Regulations at 50 CFR 622.388(a)(1)(i) submit a report containing this rule and Service (NMFS), National Oceanic and require NMFS to close the commercial other required information to the U.S. Atmospheric Administration (NOAA), sector for Gulf king mackerel in the Senate, the U.S. House of Commerce. northern zone when the commercial quota is reached, or is projected to be Representatives, and the Comptroller ACTION: Temporary rule; closure. General of the United States prior to reached, by filing a notification to that publication of the rule in the Federal SUMMARY: NMFS implements an effect with the Office of the Federal Register. This action is not a ‘‘major accountability measure (AM) for Register. NMFS has determined the rule’’ as defined by 5 U.S.C. 804(2). commercial king mackerel in the commercial quota of 511,200 lb (231,876 northern zone of the Gulf of Mexico kg) for Gulf king mackerel in the List of Subjects in 40 CFR Part 180 (Gulf) exclusive economic zone (EEZ) northern zone will be reached by May Environmental protection, through this temporary rule. NMFS has 15, 2018. Accordingly, the northern Administrative practice and procedure, determined that the commercial quota zone is closed to commercial fishing for Agricultural commodities, Pesticides for king mackerel in the northern zone Gulf king mackerel effective from 12:01 and pests, Reporting and recordkeeping of the Gulf EEZ will be reached by May a.m., local time, on May 15, 2018, requirements. 15, 2018. Therefore, NMFS closes the through September 30, 2018, the end of northern zone of the Gulf EEZ to the current fishing year. Dated: April 30, 2018. commercial king mackerel fishing on During the closure, a person on board Daniel Rosenblatt, May 15, 2018. This closure is necessary a vessel that has been issued a valid Acting Director, Registration Division, Office to protect the Gulf king mackerel Federal commercial or charter vessel/ of Pesticide Program. resource. headboat permit for coastal migratory Therefore, 40 CFR chapter I is DATES: The closure is effective at 12:01 pelagic fish may continue to retain the amended as follows: a.m., local time, May 15, 2018, until king mackerel in the northern zone 12:01 a.m., local time, on October 1, under the recreational bag and PART 180—[AMENDED] 2018. possession limits specified in 50 CFR 622.382(a)(1)(ii) and (a)(2), as long as ■ 1. The authority citation for part 180 FOR FURTHER INFORMATION CONTACT: the recreational sector for Gulf king continues to read as follows: Kelli O’Donnell, NMFS Southeast mackerel in the northern zone is open Authority: 21 U.S.C. 321(q), 346a and 371. Regional Office, telephone: 727–824– (50 CFR 622.384(e)(1)). 5305, email: [email protected]. ■ Also during the closure, king 2. In § 180.474, add alphabetically the SUPPLEMENTARY INFORMATION: The mackerel from the closed zone, entries ‘‘Ginseng, dried’’ and ‘‘Ginseng, fishery for coastal migratory pelagic fish including those harvested under the bag fresh’’ to the table in paragraph (a)(1) to includes king mackerel, Spanish and possession limits, may not be read as follows: mackerel, and cobia, and is managed purchased or sold. This prohibition § 180.474 Tebuconazole; tolerances for under the Fishery Management Plan for does not apply to king mackerel from residues. the Coastal Migratory Pelagic Resources the closed zone that were harvested, (a) * * * of the Gulf of Mexico and Atlantic landed ashore, and sold prior to the Region (FMP). The FMP was prepared (1) * * * closure and were held in cold storage by by the Gulf of Mexico and South a dealer or processor (50 CFR Parts per Atlantic Fishery Management Councils 622.384(e)(2)). Commodity million and is implemented by NMFS under the authority of the Magnuson-Stevens Classification Fishery Conservation and Management The Regional Administrator for the ***** Act (Magnuson-Stevens Act) by NMFS Southeast Region has determined Ginseng, dried 1 ...... 0.40 regulations at 50 CFR part 622. All this temporary rule is necessary for the 1 Ginseng, fresh ...... 0.15 weights for Gulf king mackerel below conservation and management of Gulf king mackerel and is consistent with the ***** apply as either round or gutted weight. On April 11, 2017, NMFS published Magnuson-Stevens Act and other 1 There are no U.S. registrations. a final rule to implement Amendment applicable laws.

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This action is taken under 50 CFR ACTION: Temporary rule; closure of vessels fishing under the Angling 622.384(e) and 622.388(a)(1)(i), and is Angling category Gulf of Mexico trophy category quota, with 1.5 mt allocated for exempt from review under Executive fishery. each of the following areas: North of Order 12866. 39°18′ N lat. (off Great Egg Inlet, NJ); These measures are exempt from the SUMMARY: NMFS closes the Gulf of south of 39°18′ N lat. and outside the procedures of the Regulatory Flexibility Mexico Angling category fishery for Gulf of Mexico (the ‘‘southern area’’); Act because the temporary rule is issued large medium and giant (‘‘trophy’’ (i.e., and in the Gulf of Mexico. Trophy BFT without opportunity for prior notice and measuring 73 inches curved fork length measure 73 inches (185 cm) curved fork or greater)) Atlantic bluefin tuna (BFT). comment. length or greater. This action responds to the best This action is being taken to prevent Based on reported landings from the scientific information available. The overharvest of the Angling category Gulf NMFS Automated Catch Reporting Assistant Administrator for NOAA of Mexico trophy BFT subquota. System, NMFS has determined that the Fisheries (AA) finds good cause to DATES: Effective 11:30 p.m., local time, codified Angling category Gulf of waive the requirements to provide prior May 13, 2018, through December 31, notice and opportunity for public 2018. Mexico trophy BFT subquota has been reached and exceeded and that a closure comment pursuant to the authority set FOR FURTHER INFORMATION CONTACT: forth at 5 U.S.C. 553(b)(B) as such of the Gulf of Mexico trophy BFT Sarah McLaughlin or Brad McHale, fishery is warranted. Therefore, procedures are unnecessary and 978–281–9260. contrary to the public interest. Such retaining, possessing, or landing large SUPPLEMENTARY INFORMATION: medium or giant BFT in the Gulf of procedures are unnecessary because the Regulations implemented under the rule implementing the commercial Mexico by persons aboard vessels authority of the Atlantic Tunas permitted in the HMS Angling category quota and the associated AM has Convention Act (ATCA; 16 U.S.C. 971 et already been subject to notice and and the HMS Charter/Headboat category seq.) and the Magnuson-Stevens Fishery (when fishing recreationally) must cease public comment, and all that remains is Conservation and Management Act to notify the public of the closure. at 11:30 p.m. local time on May 13, (Magnuson-Stevens Act; 16 U.S.C. 1801 2018. This closure will remain effective Additionally, allowing prior notice and et seq.) governing the harvest of BFT by opportunity for public comment is through December 31, 2018. This action persons and vessels subject to U.S. is intended to prevent further contrary to the public interest because jurisdiction are found at 50 CFR part overharvest of the Angling category Gulf of the need to implement immediately 635. Section 635.27 subdivides the U.S. of Mexico trophy BFT subquota, and is this action to protect the king mackerel BFT quota recommended by the taken consistent with the regulations at stock, because the capacity of the International Commission for the § 635.28(a)(1). fishing fleet allows for rapid harvest of Conservation of Atlantic Tunas (ICCAT) the commercial quota. Prior notice and among the various domestic fishing If needed, subsequent Angling opportunity for public comment would categories, per the allocations category adjustments will be published require time and could potentially result established in the 2006 Consolidated in the Federal Register. Information in a harvest well in excess of the Atlantic Highly Migratory Species regarding the Angling category fishery established commercial quota. Fishery Management Plan (2006 for Atlantic tunas, including daily For the aforementioned reasons, the Consolidated HMS FMP) (71 FR 58058, retention limits for BFT measuring 27 AA also finds good cause to waive the October 2, 2006) and amendments. inches (68.5 cm) to less than 73 inches 30-day delay in the effectiveness of this NMFS is required, under and any further Angling category action under 5 U.S.C. 553(d)(3). § 635.28(a)(1), to file a closure notice adjustments, is available at Authority: 16 U.S.C. 1801 et seq. with the Office of the Federal Register hmspermits.noaa.gov or by calling (978) Dated: May 11, 2018. for publication when a BFT quota is 281–9260. HMS Angling and HMS Jennifer M. Wallace, reached or is projected to be reached. Charter/Headboat category permit On and after the effective date and time Acting Director, Office of Sustainable holders may catch and release (or tag Fisheries, National Marine Fisheries Service. of such notification, for the remainder of and release) BFT of all sizes, subject to the fishing year or for a specified period [FR Doc. 2018–10434 Filed 5–11–18; 4:15 pm] the requirements of the catch-and- as indicated in the notification, BILLING CODE 3510–22–P release and tag-and-release programs at retaining, possessing, or landing BFT § 635.26. Anglers are also reminded that under that quota category is prohibited all BFT that are released must be DEPARTMENT OF COMMERCE until the opening of the subsequent handled in a manner that will maximize quota period or until such date as survival, and without removing the fish National Oceanic and Atmospheric specified in the notice. from the water, consistent with Administration Angling Category Large Medium and requirements at § 635.21(a)(1). For Giant Gulf of Mexico ‘‘Trophy’’ Fishery additional information on safe handling, 50 CFR Part 635 Closure see the ‘‘Careful Catch and Release’’ brochure available at https:// The 2018 BFT fishing year, which is [Docket No. 150121066–5717–02] www.fisheries.noaa.gov/resource/ managed on a calendar-year basis and outreach-and-education/careful-catch- subject to an annual calendar-year RIN 0648–XG237 and-release-brochure. quota, began January 1, 2018. The HMS Charter/Headboat and Angling Atlantic Highly Migratory Species; Angling category season opened January category vessel owners are required to Atlantic Bluefin Tuna Fisheries 1, 2018, and continues through December 31, 2018. The currently report the catch of all BFT retained or AGENCY: National Marine Fisheries codified Angling category quota is 195.2 discarded dead, within 24 hours of the Service (NMFS), National Oceanic and metric tons (mt), of which 4.5 mt is landing(s) or end of each trip, by Atmospheric Administration (NOAA), allocated for the harvest of large accessing hmspermits.noaa.gov or by Commerce. medium and giant (trophy) BFT by using the HMS Catch Reporting App.

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Classification Mexico trophy fishery subquota. NMFS of BFT occur. Therefore, the AA finds provides notification of closures by good cause under 5 U.S.C. 553(b)(B) to The Assistant Administrator for publishing the notice in the Federal waive prior notice and the opportunity NMFS (AA) finds that it is impracticable Register, emailing individuals who have for public comment. For all of the above and contrary to the public interest to subscribed to the Atlantic HMS News reasons, there is good cause under 5 provide prior notice of, and an electronic newsletter, and updating the U.S.C. 553(d) to waive the 30-day delay opportunity for public comment on, this information posted on the Atlantic in effectiveness. action for the following reasons: Tunas Information Line and on This action is being taken under 50 The regulations implementing the hmspermits.noaa.gov. 2006 Consolidated HMS FMP and These fisheries are currently CFR 635.28(a)(1), and is exempt from amendments provide for inseason underway and delaying this action review under Executive Order 12866. retention limit adjustments and fishery would be contrary to the public interest Authority: 16 U.S.C. 971 et seq. and 1801 closures to respond to the unpredictable as it could result in excessive trophy et seq. nature of BFT availability on the fishing BFT landings that may result in future Dated: May 11, 2018. grounds, the migratory nature of this potential quota reductions for the species, and the regional variations in Angling category, depending on the Jennifer M. Wallace, the BFT fishery. The closure of the Gulf magnitude of a potential Angling Acting Director, Office of Sustainable of Mexico Angling category trophy category overharvest. NMFS must close Fisheries, National Marine Fisheries Service. fishery is necessary to prevent any the Gulf of Mexico trophy BFT fishery [FR Doc. 2018–10433 Filed 5–11–18; 4:15 pm] further overharvest of the Gulf of before additional landings of these sizes BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 83, No. 95

Wednesday, May 16, 2018

This section of the FEDERAL REGISTER Avenue SW, Mailstop 3758, Room 6065, establishments to develop and maintain contains notices to the public of the proposed Washington, DC 20250–3700. Hazard Analysis and Critical Control issuance of rules and regulations. The • Hand- or courier-delivered Point (HACCP) plans and Sanitation purpose of these notices is to give interested submittals: Deliver to 1400 Standard Operating Procedures persons an opportunity to participate in the Independence Avenue SW, Room 6065, (Sanitation SOPs). rule making prior to the adoption of the final Among the post-mortem inspection rules. Washington, DC 20250–3700. Instructions: All items submitted by regulations is one titled ‘‘Cleaning of mail or electronic mail must include the hog carcasses before incising’’ (9 CFR DEPARTMENT OF AGRICULTURE Agency name and docket number FSIS– 310.11). This regulation states, ‘‘All 2018–0005. Comments received in hair, scurf, and dirt, including all hoofs Food Safety and Inspection Service response to this docket will be made and claws, shall be removed from hog available for public inspection and carcasses and the carcasses thoroughly 9 CFR Part 310 posted without change, including any washed and cleaned, before any incision personal information, to http:// is made for inspection or evisceration.’’ [Docket No. FSIS–2018–0005] www.regulations.gov. The carcass cleaning that the regulation is referring to typically begins in an RIN: 0583–AD68 Docket: For access to background documents or comments received, call official slaughter establishment after Eliminating Unnecessary (202)720–5627 to schedule a time to stunning, bleeding, and scalding, and Requirements for Hog Carcass visit the FSIS Docket Room at 1400 continues after gambrelling 1 and Cleaning Independence Avenue SW, Room 6065, singeing, along with trimming of jowls, Washington, DC 20250–3700. lips, and eyelids, but before dropping of AGENCY: Food Safety and Inspection FOR FURTHER INFORMATION CONTACT: the head. This regulation has helped to Service, USDA. Roberta Wagner, Assistant ensure that carcasses are clean when ACTION: Proposed rule. Administrator, Office of Policy and presented for post-mortem inspection. Program Development, FSIS; Telephone: Another post-mortem-inspection SUMMARY: The Food Safety and (202) 205–0495. regulation, 9 CFR 310.18, on Inspection Service (FSIS) is proposing ‘‘Contamination of carcasses, organs, or to amend the Federal meat inspection SUPPLEMENTARY INFORMATION: other parts,’’ addresses the prevention regulations by removing the provision Background and removal of contamination from requiring the cleaning of hog carcasses carcasses (before or after incision), Under the Federal Meat Inspection before any incision is made preceding organs, and other parts. Under this Act (21 U.S.C. 601–695), FSIS carries evisceration. This provision, although regulation, any contamination out an inspection program to ensure that focusing on the presentation of carcass remaining post-incision or post- carcasses, parts, and products of dressing defects, impedes the adoption evisceration is removed. amenable species of livestock are of more efficient, effective procedures Regulations on Sanitation SOPs (9 wholesome, not adulterated, and under other regulations to ensure that CFR 304.3, 416.12–17) require properly marked, labeled and packaged. carcasses and parts are free of establishments to have written Among other provisions of the Act is a contamination. Also, the provision is no procedures to ensure sanitary operating requirement for post-mortem inspection longer necessary because other conditions that will prevent of livestock carcasses, including swine regulations require carcass cleaning, the contamination and adulteration of carcasses (21 U.S.C. 604). This maintenance of sanitary conditions, and products. The HACCP regulations (9 inspection must be completed before the the prevention of hazards reasonably CFR 304.3, and 417, particularly 9 CFR carcasses or the meat or meat food likely to occur in the slaughter process. 417.2, and 417.4) require establishments products derived from them are moved to have HACCP plans to prevent or DATES: Comments must be received by to further processing (21 U.S.C. 605) and reduce to acceptable levels any hazards July 16, 2018. preparation for commerce (also under reasonably likely to occur. These ADDRESSES: FSIS invites interested inspection) (21 U.S.C. 606(a)). include any contamination hazards that persons to submit comments on FSIS– Under the Act, the Agency may are not already minimized through the 2018–0005. Comments may be prescribe rules and regulations of implementation of Sanitation SOPs or submitted by one of the following sanitation under which establishments other prerequisite programs. FSIS and methods: must be maintained (21 U.S.C. 608). • members of the regulated industry have Federal eRulemaking Portal: This More generally, the Agency may issue found that the regulation on cleaning website provides the ability to type rules and regulations necessary for the hog carcasses before incising, 9 CFR short comments directly into the efficient execution of the Act’s 310.11, may impede the application of comment field on this web page or provisions (21 U.S.C. 621). alternative, more efficient, procedures attach a file for lengthier comments. Go Accordingly, FSIS and its for removing hair, scurf, and dirt after to http://www.regulations.gov. Follow predecessors have issued regulations the first incision preceding the dropping the on-line instructions at that site for governing inspection. The regulations of the head and evisceration. submitting comments. include post-mortem inspection Because the current regulation is • Mail, including CD–ROMs, etc.: requirements, criteria for determining prescriptive and requires dehairing Send to Docket Clerk, U.S. Department whether or not meat or meat food of Agriculture, Food Safety and products are adulterated, and 1 Suspending the carcass by the legs from a metal Inspection Service, 1400 Independence requirements for inspected frame or hanger—a gambrel.

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before evisceration, the establishment or other procedures to remove any Economic Analysis has limited flexibility. Removing the defects during the stages of slaughter Expected Cost Savings and Benefits regulation will enable an establishment and further processing that follow Associated With the Proposed Rule to remove hair, scurf, nails, and hooves evisceration. They can make their at other points in the process and to do operations more efficient and effective This proposed rule is expected to so in a way that may prove to be more without compromising food safety. reduce swine slaughter labor costs by efficient. For example, removing hair Therefore, these other regulations, and approximately $11.81 million annually. from the snout when the snout is on a establishment compliance therewith, These savings are due to industry’s table, beyond the point where the first make 9 CFR 310.11 unnecessary. practice of dedicating labor pre-incision, incision is made, and the snout is also FSIS is therefore proposing to remove solely to comply with 310.11. Under the not moving on the line is more efficient 9 CFR 310.11 from the regulations. proposed rule, this labor would no than trying to remove the hair on a longer be needed because the work can Modernization of Swine Slaughter be accomplished by existing labor moving carcass with the head still Inspection attached. located post-incision. FSIS’s labor cost These more efficient procedures also On February 1, 2018, FSIS proposed savings estimate assumes that the labor ensure that carcasses will be free of a new regulation to modernize swine affected by the proposed rule is contamination when moved within an inspection (83 FR 4780). Among other equivalent to that in the Bureau of Labor establishment to, or shipped in things, in this rule, FSIS is proposing to Statistics’ (BLS’s) slaughtering and commerce for, further processing. The require that all official swine slaughter meat-packing occupational category, for alternative procedures can be establishments develop, implement, and which the industry annual wage is incorporated in a prerequisite program maintain in their HACCP systems $27,140.2 The Agency seeks comment aimed at preventing contamination. written procedures to prevent the on this assumption. Applying a benefits- When executed and documented, the contamination of carcasses and parts by and-overhead factor of 2 brings this program can support an establishment’s enteric pathogens, fecal material, occupation’s total annual labor costs per hazard analysis (as per 9 CFR ingesta, and milk throughout the entire position to $54,280 ($27,140 × 2). 417.5(a)(1)) and HACCP plan. At times, slaughter and dressing operation. These The number of positions affected at the Agency has, under an exemption procedures must include sampling and each establishment depends on the regulation, at 9 CFR 303.1(h), granted analysis for microbial organisms to establishment’s size, slaughter volume, waivers from the requirements of 9 CFR monitor process control for enteric number of lines and shifts it operates, 310.11 to permit the use of the pathogens, as well as written procedures and days of operation. Large 3 swine alternative procedures. to prevent visible fecal material, ingesta, establishments are thought to dedicate For example, carcass defects and and milk contamination. In addition, from one to three full-time positions per blemishes too small to be detected FSIS is proposing to require that all line and per shift to comply with 9 CFR during slaughter can be removed during official swine slaughter establishments 310.11; while small 4 high-volume 5 off-line inspection or during further develop, implement, and maintain in establishments dedicate between one processing. So, some establishments are their HACCP systems written and two positions for the same purpose. using alternative procedures for procedures to prevent contamination of Small low-volume and very small 6 removing, after carcass dressing, hairs the pre-operational environment by establishments are thought to dedicate that are not readily visible. Such defects enteric pathogens. Therefore, in the between one quarter-time and one full- may be regarded as finished carcass modernization proposed rule, FSIS is time position to compliance with this defects and not as contamination or proposing additional requirements that, regulation. The Agency seeks comment sanitary dressing defects. Singed if finalized, will further prevent on these labor-demand estimates. eyelashes remaining on the carcass or contamination of swine carcasses. If According to data from the Agency’s isolated, individual, hairs on the head finalized, this rule would provide more electronic Public Health Inspection or face of the ham may be found after support for eliminating section 310.11, System (PHIS), 479 very small the first incision. Such defects may be as is proposed above. establishments, 54 small low-volume removed effectively when pulling the establishments, 51 small high-volume Executive Orders 12866 and 13563, and snout and when ‘‘facing’’ (trimming the establishments, and 23 7 large swine the Regulatory Flexibility Act excess fat along the inside surfaces of) hams in the cutting room, where Executive Orders 12866 and 13563 2 BLS Occupational Employment Statistics (OES) carcasses are broken down in a sanitary direct agencies to assess all costs and May 2016 National Industry-Specific Occupational benefits of available regulatory Employment and Wage Estimates for North manner into standard wholesale or retail American Industrial Classification (NAICS) code cuts. Remaining hoofs and claws (i.e., alternatives and, if regulation is 311600 (Animal Slaughtering and Processing) nails) can be removed after the first necessary, to select regulatory https://www.bls.gov/oes/current/naics4_ incision or later in processing when feet approaches that maximize net benefits 311600.htm> Last Modified 3/31/2017 Accessed on are discarded or not saved for food in (including potential economic, 1/19/2018. 3 A large establishment has 500 or more the cutting room. FSIS has found the environmental, public health and safety employees. performance of establishments using the benefits, distributive impacts, and 4 A small establishment has between 10 and 499 alternative procedures to be satisfactory. equity). Executive Order (E.O.) 13563 employees. Establishments using the alternatives emphasizes the importance of 5 9 CFR 310.25(a)(2)(v) defines very low volume are listed on the FSIS website at: https:// quantifying both costs and benefits, of swine slaughter establishments as slaughtering 20,000 head annually or fewer. For the purposes of www.fsis.usda.gov/wps/wcm/connect/ reducing costs, of harmonizing rules, this analysis, FSIS has labeled swine establishments 188bf583-45c9-4837-9205- and of promoting flexibility. This that annually slaughter more than 20,000 head per 37e0eb1ba243/Waiver_ proposed rule has been designated as a year as high-volume establishments. Table.pdf?MOD=AJPERES ‘‘non-significant’’ regulatory action 6 A very small establishment has less than 10 By relying on the authority of 9 CFR under section 3(f) of E.O. 12866. employees or less than $2.5 million in annual sales. 7 While there are 28 large swine establishments, 310.18 and the Sanitation SOP and Accordingly, the rule has not been five are operating under waivers from 9 CFR 310.11 HACCP regulations, establishments reviewed by the Office of Management and are not expected to experience a decrease in have the flexibility to implement these and Budget (OMB) under E.O. 12866. Continued

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establishments would be affected by this also show that, on average, large establishments; see table 1. Table 2 rule. This analysis takes into establishments annually operate 266 provides the estimated labor cost consideration the fact that some large days, small high-volume establishments savings from the proposed rule, given and small high-volume establishments 239 days, small low-volume the expected labor costs, number of operate multiple lines and multiple establishments 95 days, and very small positions, and days of operation. The shifts. This analysis assumes that all establishments 67 days. The proposed annual cost savings range from $5.27 other establishments operate one line rule is expected to lead to a reduction million to $19.03 million, with a mid- and one shift per day. Data from PHIS in industry positions at these point of $11.81 million.

TABLE 1—ESTIMATED INDUSTRY LABOR REDUCTIONS FROM REMOVING 310.11

Number of Number of positions reduced Size of est establish- ments * Low Medium High

Large ...... 23 37 74 111 Small High Volume ...... 51 26 77 102 Small Low Volume ...... 54 14 27 54 Very Small ...... 479 120 240 479 Combined ...... 607 196 417 746 * Public Health Information System (PHIS).

TABLE 2—LABOR WAGE COST (SAVINGS) FROM REMOVING 310.11, 2016

Number of Total annual labor costs (savings) Size of est establish- (M$) ** ments * Low Medium High

Large ...... 23 ($2.06) ($4.11) ($6.17) Small High Volume...... 51 (1.27) (3.82) (5.09) Small Low Volume ...... 54 (.27) (.54) (1.07) Very Small ...... 479 (1.68) (3.35) (6.7) Combined ...... 612 (5.27) (11.81) (19.03)

Annualized Costs (Savings), Over 10 Years (M$)

Assuming a 3% Discount Rate ...... (5.27) (11.81) (19.03) Assuming a 7% Discount Rate ...... (5.27) (11.81) (19.03) * Public Health Information System (PHIS). ** Wage estimates were sourced from BLS OES May 2016 National Industry-Specific Occupational Employment and Wage Estimates for NAICS code 311600 Last Modified 3/31/2017. Accessed on 1/19/2018.

Expected Costs Associated With This as proposed, this rule is expected to be information technologies and providing Action an E.O. 13771 deregulatory action. increased opportunities for citizen access to Government information and The proposed rule has no expected Paperwork Reduction Act services, and for other purposes. costs associated with it. No new paperwork requirements are Expected Effects on Small Entities associated with this proposed rule. Additional Public Notification The FSIS Acting Administrator has Executive Order 12988 FSIS will announce this proposal on- made a preliminary determination that This proposed rule has been reviewed line through the FSIS web page located this proposed rule will not have a under E.O. 12988, Civil Justice Reform. at: http://www.fsis.usda.gov/ _ _ _ significant impact on a substantial If this proposed rule is adopted: (1) All regulations & policies/Proposed Rules/ number of small entities, as defined by State and local laws and regulations that index.asp. FSIS also will make copies of the Regulatory Flexibility Act (5 U.S.C. are inconsistent with this rule will be this Federal Register publication 601). The expected labor cost reductions preempted; (2) No retroactive effect will available through the FSIS Constituent associated with the proposed rule are be given to this rule; and (3) Update, which is used to provide not likely to be large enough to Administrative proceedings will not be information regarding FSIS policies, significantly impact an entity. Further, required before parties may file suit in procedures, regulations, Federal the proposed rule does not have any court challenging this rule. Register notices, FSIS public meetings, cost increases. and other types of information that E-Government Act could affect or would be of interest to Executive Order 13771 FSIS and USDA are committed to our constituents and stakeholders. The Consistent with E.O. 13771 (82 FR achieving the purposes of the E- Update is available on the FSIS web 9339, February 3, 2017), FSIS has Government Act (44 U.S.C. 3601, et page. Through the web page, FSIS is estimated that this proposed rule would seq.) by, among other things, promoting able to provide information to a much yield cost savings. Therefore, if finalized the use of the internet and other broader, more diverse audience. In

their demand for labor resulting from implementation of this proposed rule.

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addition, FSIS offers an email Done, at Washington, DC. Dated: May 10, 2018. subscription service which provides Paul Kiecker Sterling J. Rideout, automatic and customized access to Acting Administrator. Assistant Director, Program Support. selected food safety news and [FR Doc. 2018–10488 Filed 5–15–18; 8:45 am] [FR Doc. 2018–10485 Filed 5–15–18; 8:45 am] information. This service is available at: BILLING CODE 3410–DM–P BILLING CODE 4310–05–P http://www.fsis.usda.gov/subscribe. Options range from recalls to export information, regulations, directives, and DEPARTMENT OF INTERIOR notices. Customers can add or delete DEPARTMENT OF THE INTERIOR subscriptions themselves, and have the Office of Surface Mining Reclamation option to password protect their Office of Surface Mining Reclamation and Enforcement accounts. and Enforcement 30 CFR Part 938 USDA Non-Discrimination Statement 30 CFR Part 938 No agency, officer, or employee of the [SATS No. PA–165–FOR; Docket ID: OSM– 2016–0013; S1D1S SS08011000 SX064A000 USDA, on the grounds of race, color, [PA–166–FOR; Docket ID: OSM–2017–0008 189S180110; S2D2S SS08011000 national origin, religion, sex, gender S1D1S SS08011000 SX064A000 SX064A000 18XS501520] identity, sexual orientation, disability, 189S180110; S2D2S SS08011000 age, marital status, family/parental SX064A000 18XS501520] Pennsylvania Abandoned Mine Land status, income derived from a public Reclamation Program assistance program, or political beliefs, Pennsylvania Regulatory Program; shall exclude from participation in, Correction AGENCY: Office of Surface Mining deny the benefits of, or subject to Reclamation and Enforcement (OSMRE), discrimination, any person in the AGENCY: Office of Surface Mining Interior. United States under any program or Reclamation and Enforcement (OSMRE), ACTION: Proposed rule; public comment activity conducted by the USDA. Interior. period and opportunity for public hearing on proposed amendment. How To File a Complaint of ACTION: Proposed rule; correction. Discrimination SUMMARY: We, the Office of Surface SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement To file a complaint of discrimination, Mining Reclamation and Enforcement complete the USDA Program (OSMRE), are announcing receipt of a published a document in the Federal proposed amendment to the Discrimination Complaint Form, which Register on May 8, 2018, reopening the may be accessed online at http:// Pennsylvania Abandoned Mine Land comment period and announcing a Reclamation (AMLR) Plan (hereinafter, www.ocio.usda.gov/sites/default/files/ public hearing on an amendment to the docs/2012/Complain_combined_6_8_ the Plan) under the Surface Mining Pennsylvania Regulatory Program. The Control and Reclamation Act of 1977 12.pdf, or write a letter signed by you document contained an incorrect date or your authorized representative. (SMCRA or the Act). Through this for the public hearing. proposed amendment, Pennsylvania Send your completed complaint form would modify its AMLR Plan by adding or letter to USDA by mail, fax, or email: FOR FURTHER INFORMATION CONTACT: Mr. Ben Owens, Chief, Pittsburgh Field Reclamation Plan Amendment No. 3, to Mail: U.S. Department of Agriculture, allow the Pennsylvania Department of Director, Office of Adjudication, 1400 Division, Telephone: (412) 937–2827. Email: [email protected]. Environmental Protection (PADEP) to Independence Avenue SW, Washington, administer a State Emergency Program DC 20250–9410, Fax: (202) 690–7442, Correction under Title IV of the Surface Mining Email: [email protected]. Control and Reclamation Act of 1977. In the proposed rule of May 8, 2018, Persons with disabilities who require The plan covers coordination of in FR Doc. 2018–09767, on page 20774 alternative means for communication emergency reclamation work between in the third column, correct the DATES (Braille, large print, audiotape, etc.), the Commonwealth and the OSMRE as caption to read: should contact USDA’s TARGET Center well as procedures for implementing the at (202) 720–2600 (voice and TDD). DATES: We will accept written comments National Environmental Policy Act and until 4 p.m., Eastern Standard Time (EST), List of Subjects in 9 CFR 310 other Commonwealth procedures. June 7, 2018. The public hearing will be held This document gives the locations Animal diseases, Meat inspection. on May 17, 2018, from 5:30 p.m. until 7:30 and times where the Pennsylvania p.m. EST. For the reasons set out in the AMLR Plan documents and this preamble, FSIS is proposing to amend 9 Correction proposed amendment to that Plan are CFR part 310 as follows: available for your inspection, In the proposed rule of May 8, 2018, establishes the comment period during PART 310—POST-MORTEM in FR Doc. 2018–09767, on page 20775 which you may submit written INSPECTION in the first column, correct the ‘‘Public comments on the amendment, and Hearing’’ caption to read: describes the procedures we will follow ■ 1. The authority citation for part 310 Public Hearing: The public hearing will be for the public hearing, if one is continues to read as follows: held at the Double Tree by Hilton Pittsburgh- requested. Green Tree, 500 Mansfield Avenue, DATES: Authority: 21 U.S.C. 601–695; 7 CFR 2.18, Pittsburgh, Pennsylvania 15205; phone We will accept written 2.53. number: 412–922–8400, on Thursday, May comments on this amendment until 4:00 p.m., Eastern Standard Time (e.s.t.), § 310.11 [Removed and reserved] 17, 2018, from 5:30 p.m. to 7:30 p.m. EST. Those wishing to provide oral testimony June 15, 2018. If requested, we will hold ■ 2. Section 310.11 is removed and need to register between 5:00 p.m. and 5:30 a public hearing about the amendment reserved. p.m. on June 11, 2018. We will accept

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requests to speak at a hearing until 4:00 abandoned coal mines and for other statutory authority to establish and p.m., e.s.t. on May 31, 2018. authorized activities. Section 405 of the administer an Emergency Program as ADDRESSES: You may submit comments, Act allows States and Tribes to assume part of its State AMLR Plan. The Office identified by SATS No. PA–165–FOR; exclusive responsibility for reclamation of Chief Counsel’s memorandum notes Docket ID: OSM–2016–0013 by any of activity within the State or on Tribal that ‘‘Section 16 of the Land and Water the following methods: lands if they develop and submit to the Conservation and Reclamation Act (32 • Mail/Hand Delivery: Mr. Ben Secretary of the Interior (Secretary) for P.S. § 5116 (Allotment of moneys)) and Owens, Chief, Pittsburgh Field Office, approval, a program for the reclamation the Mine Fire and Subsidence Remedial Office of Surface Mining Reclamation of abandoned coal mines. The Secretary Project Indemnification Law (52 P.S. and Enforcement, 3 Parkway Center, approved the Pennsylvania AMLR Plan, 30.201–30.206) provide PADEP the Pittsburgh, PA, 15220. effective July 31, 1982. You can find authority to conduct activities • Federal eRulemaking Portal: http:// background information on the Plan, consistent with an Emergency www.regulations.gov. Follow the including the Secretary’s findings, the Reclamation Program.’’ instructions for submitting comments. disposition of comments, and the The proposed program amendment Instructions: All submissions received approval of the Plan in the July 30 1982, includes policies and procedures the must include the agency name and Federal Register (47 FR 33083). You can Commonwealth will follow in docket number for this rulemaking. For find later actions concerning the conducting the Emergency Response detailed instructions on submitting Pennsylvania AMLR Plan and Program. Emergency response comments and additional information amendments to the Plan at 30 CFR reclamation activities involve entering on the rulemaking process, see the 938.20 and 938.25. upon any land where eligible ‘‘Public Comment Procedures’’ heading abandoned coal mine related II. Description of the Proposed emergencies exist and doing all things of the SUPPLEMENTARY INFORMATION Amendment section of this document. necessary or expedient to protect the Docket: In addition to obtaining By letter dated November 22, 2016 public health, safety or general welfare copies of documents at (Administrative Record No. PA 898.00), from the adverse effects of legacy coal www.regulations.gov, you may receive Pennsylvania sent us an amendment to mining practices. PADEP will handle one free copy of the amendment by its AMLR Plan under SMCRA (30 U.S.C. the coordination of emergency contacting OSMRE’s Pittsburgh Field 1201 et seq.). reclamation work between the State and Office (PFO). For access to the docket to Pennsylvania is requesting to modify OSMRE as outlined in PFO’s OSMRE review copies of the Pennsylvania the Commonwealth’s Plan to allow the Emergency Response protocol and using program, this amendment, a listing of PADEP to administer a State Emergency the procedures set out in OSMRE’s any scheduled public hearings, and all Program under Title IV of the Surface FAM. PADEP will conduct all written comments received in response Mining Control and Reclamation Act of investigations and eligibility findings to this document, you may go to the 1977 (30 U.S.C.A. §§ 1201–1328). The required by Title IV of SMCRA. When address listed below during normal coordination of emergency reclamation emergency conditions warrant an business hours, Monday through Friday, work between the Commonwealth and immediate response, the PADEP will excluding holidays. the OSMRE will be handled by the initiate appropriate action upon receipt Mr. Ben Owens, Chief, Pittsburgh PADEP. The PADEP intends to follow of an approval, a ‘‘Limited Emergency Field Office, Office of Surface Mining Chapter 4–120 of OSMRE’s Federal Response,’’ or a verbal approval from Reclamation and Enforcement, 3 Assistance Manual (FAM) entitled, OSMRE. A Limited Emergency Parkway Center, Pittsburgh, PA 15220, ‘‘State Emergency AML Reclamation Response is described in OSMRE’s Telephone: (412) 937–2827, Email: Program.’’ Coordination with other Federal Assistance Manual. The [email protected]. agencies for environmental clearance objective of the Limited Emergency will be on a project specific basis as Response is to stabilize the emergency FOR FURTHER INFORMATION CONTACT: Mr. outlined in the ‘‘OSMRE Handbook on aspects of the problem by eliminating Ben Owens, Chief, Pittsburgh Field Procedures for Implementing the Office, Office of Surface Mining the immediate danger to public health, National Environmental Policy Act’’ and safety, and welfare. Any remaining Reclamation and Enforcement, 3 other Commonwealth procedures. reclamation should then be Parkway Center, Pittsburgh, PA 15220, OSMRE notes that before September accomplished as part of a regular non- Telephone: (412) 937–2827, Email: 30, 2010, OSMRE conducted emergency emergency AML project. [email protected]. AML reclamation in Pennsylvania. B. PADEP may enter on any land SUPPLEMENTARY INFORMATION: Effective October 1, 2010, OSMRE where an emergency exists or on land I. Background on the Pennsylvania AMLR transitioned emergency AML adjacent thereto for access, to prevent Program reclamation responsibilities to PADEP the adverse impacts of the emergency in II. Description of the Proposed Amendment leading to the submittal of the proposed order to protect the public health, safety III. Public Comment Procedures amendment. [Administrative Record and general welfare. While PADEP will IV. Procedural Determinations Number PA 898.05]. The following are make all reasonable efforts to notify the the proposed changes contained in landowners and receive consent for I. Background on the Pennsylvania Pennsylvania’s submission. right of entry, the State will obtain AMLR Program A. Attached to the proposed program access in accordance with 30 CFR The AMLR program was established amendment are an official designation 877.14 when property owners will not by Title IV of SMCRA in response to by the Governor of Pennsylvania in grant permission. All emergency project concerns over threats to the health and 1978 that the Department of development, design, realty, safety of the public and environmental Environmental Resources is the State construction, and administration will damage caused by coal mining activities Agency authorized to implement and generally be done by PADEP, following conducted before the enactment of the administer the Abandoned Mine the procedures used in the State’s Non- Act. The program is funded by a Reclamation Program, and a 2016 Emergency Title IV Program. reclamation fee collected on each active memorandum from the PADEP’s Office On October 14, 2016, PADEP posted coal mine to finance the reclamation of of Chief Counsel specifying PADEP’s public notice that an opportunity

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existed for public comment on the draft legislative history, its implementing a written summary of each meeting a amendment and specifically notified regulations, case law, other pertinent part of the administrative record. stakeholders of this opportunity. The State or Federal laws or regulations, IV. Procedural Determinations public Notice was posted in the PA technical literature, or other relevant Bulletin on both PADEP’s online publications. Executive Order 12866—Regulatory eComment and on the Bureau of We cannot ensure that comments Planning and Review received after the close of the comment Abandoned Mine Reclamation websites. Pursuant to Office of Management and period (see DATES) or sent to an address No comments were received. Budget (OMB) Guidance dated October C. Under the proposed amendment, other than those listed (see ADDRESSES) 12, 1993, the approval of state program PADEP may undertake an emergency will be included in the docket for this amendments is exempted from OMB project in any of the eligible coalfields rulemaking and considered. review under Executive Order 12866. found in Pennsylvania and these Public Availability of Comments projects may involve any eligible legacy Other Laws and Executive Orders coal mining related problems. A site is Before including your address, phone Affecting Rulemaking number, email address, or other eligible for AML funding if it was mined When a State submits a plan personal identifying information in your for coal or was affected by such mining, amendment to OSMRE for review and comment, you should be aware that was abandoned or left in an inadequate that amendment changes the objectives, your entire comment including your reclamation status prior to August 3, scope or major policies followed, our personal identifying information, may 1977, the date of enactment of SMCRA, regulations at 30 CFR 884.14 and 884.15 be made publicly available at any time. and if it is determined that there is no require us either to hold a public While you can ask us in your comment continuing reclamation responsibility hearing on a plan amendment or make to withhold your personal identifying under State or other Federal laws. See a finding that the State provided information from public review, we 30 U.S.C. 1234. A site that was mined adequate notice and opportunity for cannot guarantee that we will be able to after August 3, 1977, may be eligible for public comment. Pennsylvania has do so. AML funding if it meets the criteria in elected to have OSMRE publish a notice section 402(g)(4)(B)(i) or (ii). See 30 Public Hearing in the Federal Register indicating U.S.C. 1232(g)(4)(B)(i) or (ii). receipt of the proposed amendment and D. The proposed program amendment If you wish to speak at the public soliciting comments. We will conclude satisfies the objectives of the abandoned hearing, contact the person listed under our review of the proposed amendment mine land program as set out in Section FOR FURTHER INFORMATION CONTACT by after the close of the public comment 403 of SMCRA, FAM Chapter 4, OSMRE 4:00 p.m., e.s.t. on May 31, 2018. If you period and determine whether the Directive AML–4 and the NEPA are disabled and need reasonable amendment should be approved, handbook, which are available at accommodations to attend a public approved in part, or not approved. At https://www.osmre.gov. The State has hearing, contact the person listed under that time, we will also make the indicated that it will have the capability FOR FURTHER INFORMATION CONTACT. We determinations and certifications and the administrative structure to will arrange the location and time of the required by the various laws and properly implement the Emergency hearing with those persons requesting executive orders governing the Response Program as described in this the hearing. If no one requests an rulemaking process and include them in amendment and is willing and able to opportunity to speak, we will not hold the final rule. work closely with OSMRE to ensure its a hearing. success. To assist the transcriber and ensure an List of Subjects in 30 CFR Part 938 The full text of the program accurate record, we request, if possible, that each person who speaks at the Intergovernmental relations, Surface amendment is available for you to read mining, Underground mining. at the locations listed above under public hearing provide us with a written ADDRESSES or at www.regulations.gov. copy of his or her comments. The public Dated: May 9, 2018 hearing will continue on the specified Thomas D. Shope, III. Public Comment Procedures date until everyone scheduled to speak Regional Director, Appalachian Region. Under the provisions of 30 CFR has been given an opportunity to be [FR Doc. 2018–10483 Filed 5–15–18; 8:45 am] 732.17(h), we are seeking your heard. If you are in the audience and BILLING CODE 4310–05–P comments on whether the amendment have not been scheduled to speak and satisfies the applicable program wish to do so, you will be allowed to approval criteria of 30 CFR 732.15. If we speak after those who have been LIBRARY OF CONGRESS approve the amendment, it will become scheduled. We will end the hearing after part of the Pennsylvania’s State everyone scheduled to speak, and others Copyright Office Program. present in the audience who wish to speak, have been heard. Electronic or Written Comments 37 CFR Part 202 If you submit written or electronic Public Meeting [Docket No. 2016–03] comments on the proposed rule during If only one person requests an the 30-day comment period, they should opportunity to speak, we may hold a Mandatory Deposit of Electronic-Only be specific, confined to issues pertinent public meeting rather than a public Books: Extension of Comment Period to the proposed regulations, and explain hearing. If you wish to meet with us to AGENCY: U.S. Copyright Office, Library the reason for any recommended discuss the amendment, please request of Congress. change(s). We appreciate any and all a meeting by contacting the person ACTION: Notice of proposed rulemaking; comments, but those most useful and listed under FOR FURTHER INFORMATION extension of comment period. likely to influence decisions on the final CONTACT. All such meetings are open to regulations will be those that either the public and, if possible, we will post SUMMARY: The U.S. Copyright Office is involve personal experience or include notices of meetings at the locations further extending the deadline for the citations to and analyses of SMCRA, its listed under ADDRESSES. We will make submission of written comments in

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response to its April 16, 2018 notice of comments are therefore to be submitted make electronic-only books published proposed rulemaking, regarding electronically through regulations.gov. in the United States subject to the revisions to its regulations to finalize a Specific instructions for submitting mandatory deposit requirements if they 2010 interim rule regarding mandatory comments are available on the are affirmatively demanded by the deposit of electronic-only works, and to Copyright Office website at https:// Office.1 The Office invited public make electronic-only books published www.copyright.gov/rulemaking/ comment on the notice of proposed in the United States subject to the ebookdeposit/. If electronic submission rulemaking. To ensure that members of mandatory deposit requirements if they of comments is not feasible due to lack the public have sufficient time to are affirmatively demanded by the of access to a computer and/or the respond, and to ensure that the Office Office. internet, please contact the Office for has the benefit of a complete record, the DATES: The comment period for the special instructions using the contact Office is extending the submission notice of proposed rulemaking, information below. deadline by an additional forty-five published on April 16, 2018 at 83 FR FOR FURTHER INFORMATION CONTACT: days. Written comments now are due no 16269, is extended by an additional Cindy P. Abramson, Assistant General later than July 16, 2018. forty-five days. Comments must be Counsel, by email at [email protected] or made in writing and must be received John R. Riley at [email protected]. Both can be Dated: May 11, 2018. in the U.S. Copyright Office no later reached by telephone at 202–707–8350. Sarang V. Damle, than July 16, 2018. SUPPLEMENTARY INFORMATION: On April General Counsel and Associate Register of ADDRESSES: For reasons of government 16, 2018, the U.S. Copyright Office Copyrights. efficiency, the Copyright Office is using issued a proposed rulemaking making [FR Doc. 2018–10421 Filed 5–15–18; 8:45 am] the regulations.gov system for the revisions to its regulations to finalize a BILLING CODE 1410–30–P submission and posting of public 2010 interim rule regarding mandatory comments in this proceeding. All deposit of electronic-only works, and to 1 83 FR 16269 (April 16, 2018).

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Notices Federal Register Vol. 83, No. 95

Wednesday, May 16, 2018

This section of the FEDERAL REGISTER Independence Avenue SW, Room 6065, asks that the recalling firm (e.g., a contains documents other than rules or Washington, DC 20250–3700. manufacturer, distributor, or importer of proposed rules that are applicable to the Instructions: All items submitted by record) provide the Agency with some public. Notices of hearings and investigations, mail or electronic mail must include the basic information, including the identity committee meetings, agency decisions and Agency name and docket number FSIS– of the recalled product, the reason for rulings, delegations of authority, filing of petitions and applications and agency 2018–0017. Comments received in the recall, and information about the statements of organization and functions are response to this docket will be made distributors and retail consignees to examples of documents appearing in this available for public inspection and whom the product was actually section. posted without change, including any shipped. Under the FMIA, firms are personal information, to http:// required to keep such records that fully www.regulations.gov. and correctly disclose all transactions in DEPARTMENT OF AGRICULTURE Docket: For access to background their business (21 U.S.C. 642). Under documents or comments received, call the PPIA, firms are required to keep Food Safety and Inspection Service (202) 720–5627 to schedule a time to such records as are properly necessary [Docket No. FSIS–2018–0017] visit the FSIS Docket Room at 1400 for the effective enforcement of the PPIA Independence Avenue SW, Room 6065, (21 U.S.C. 460(b)). Notice of Request for Revision of an Washington, DC 20250–3700. When a firm voluntarily recalls a Approved Information Collection FOR FURTHER INFORMATION CONTACT: Gina product, FSIS conducts recall (Voluntary Recalls of Meat, Poultry, Kouba, Office of Policy and Program effectiveness checks. In conducting and Egg Products) Development, Food Safety and recall effectiveness checks, if the recall Inspection Service, USDA, 1400 is to the retail or consumer level, the AGENCY: Food Safety and Inspection Agency contacts the distributors and Service, USDA. Independence Avenue SW, Room 6065, South Building, Washington, DC 20250– actual retail consignees to ensure that ACTION: Notice and request for 3700; (202) 720–5627. they were notified of the recall, to verify comments. SUPPLEMENTARY INFORMATION: the amount of product they received, SUMMARY: In accordance with the Title: Voluntary Recalls of Meat, and to confirm that they are removing Paperwork Reduction Act of 1995 and Poultry, and Egg Products. the product from commerce and Office of Management and Budget OMB Control Number: 0583–0135. returning it to the recalling firm or (OMB) regulations, the Food Safety and Expiration Date: 9/30/2018. otherwise disposing of the product. Inspection Service (FSIS) is announcing Type of Request: Revision of an FSIS has made the following its intention to revise the approved approved information collection. estimates based upon an information information collection regarding Abstract: FSIS, by delegation (7 CFR collection assessment. voluntary recalls from commerce of 2.18, 2.53), exercises the functions of Estimate of Burden: FSIS estimates meat, poultry, and egg products. FSIS the Secretary as specified in the Federal that it will take respondents an average has reduced the burden estimate by Meat Inspection Act (FMIA) (21 U.S.C. of approximately 1.08 hours to collect 2,000 hours due to updated information 601, et seq.), the Poultry Products and make this information available to on recall effectiveness checks. The Inspection Act (PPIA) (21U.S.C. 451, et FSIS. approval for this information collection seq.) and the Egg Products Inspection Respondents: Official establishments, will expire on September 30, 2018. Act (EPIA) (21 U.S.C. 1031, et seq.). importers of record, and retail DATES: Submit comments on or before These statutes mandate that FSIS consignees. July 16, 2018. protect the public by verifying that Estimated Number of Respondents: ADDRESSES: FSIS invites interested meat, poultry, and egg products are safe, 6,090. persons to submit comments on this wholesome, unadulterated, and Estimated Number of Responses per Federal Register notice. Comments may properly labeled and packaged. Respondent: 1. be submitted by one of the following FSIS is requesting a revision to the Estimated Total Annual Burden on methods: approved information collection Respondents: 6,600 hours. • Federal eRulemaking Portal: This addressing paperwork requirements Copies of this information collection website provides the ability to type regarding the Agency’s requests that assessment can be obtained from Gina short comments directly into the establishments voluntarily recall from Kouba, Office of Policy and Program comment field on this web page or commerce of meat, poultry, and egg Development, Food Safety and attach a file for lengthier comments. Go products. FSIS has reduced the burden Inspection Service, USDA, 1400 to http://www.regulations.gov. Follow estimate by 2,000 hours due to updated Independence Avenue SW, Room 6065, the on-line instructions at that site for information on recall effectiveness South Building, Washington, DC 20250– submitting comments. checks. The approval for this 3700; (202) 720–5627. • Mail, including CD–ROMs, etc.: information collection will expire on Comments are invited on: (a) Whether Send to Docket Clerk, U.S. Department September 30, 2018. the proposed collection of information of Agriculture, Food Safety and FSIS requests that a firm that has is necessary for the proper performance Inspection Service, 1400 Independence produced or imported meat, poultry, or of FSIS’s functions, including whether Avenue SW, Mailstop 3758, Room 6065, egg product that is adulterated or the information will have practical Washington, DC 20250–3700. misbranded and has distributed it in utility; (b) the accuracy of FSIS’s • Hand- or courier-delivered commerce recall the product in estimate of the burden of the proposed submittals: Deliver to 1400 question. When there is a recall, FSIS collection of information, including the

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validity of the method and assumptions How to File a Complaint of DATES: Submit comments on or before used; (c) ways to enhance the quality, Discrimination July 16, 2018. utility, and clarity of the information to To file a complaint of discrimination, ADDRESSES: FSIS invites interested be collected; and (d) ways to minimize complete the USDA Program persons to submit comments on this the burden of the collection of Discrimination Complaint Form, which Federal Register notice. Comments may information, including through the use may be accessed online at http:// be submitted by one of the following of appropriate automated, electronic, www.ocio.usda.gov/sites/default/files/ methods: • mechanical, or other technological docs/2012/Complain_combined_6_8_ Federal eRulemaking Portal: This collection techniques, or other forms of 12.pdf, or write a letter signed by you website provides the ability to type information technology. Comments may or your authorized representative. short comments directly into the be sent to both FSIS, at the addresses Send your completed complaint form comment field on this web page or provided above, and the Desk Officer for or letter to USDA by mail, fax, or email: attach a file for lengthier comments. Go Agriculture, Office of Information and Mail: U.S. Department of Agriculture, to http://www.regulations.gov. Follow Regulatory Affairs, Office of Director, Office of Adjudication, 1400 the on-line instructions at that site for Management and Budget, Washington, Independence Avenue SW, Washington, submitting comments. • DC 20253. DC 20250–9410. Mail, including CD–ROMs, etc.: Responses to this notice will be Fax: (202) 690–7442. Send to Docket Clerk, U.S. Department summarized and included in the request Email: [email protected]. of Agriculture, Food Safety and for OMB approval. All comments will Persons with disabilities who require Inspection Service, 1400 Independence also become a matter of public record. alternative means for communication Avenue SW, Mailstop 3758, Room 6065, Washington, DC 20250–3700. Additional Public Notification (Braille, large print, audiotape, etc.), • should contact USDA’s TARGET Center Hand- or courier-delivered Public awareness of all segments of at (202) 720–2600 (voice and TDD). submittals: Deliver to 1400 rulemaking and policy development is Independence Avenue SW, Room 6065, important. Consequently, FSIS will Done at Washington, DC. Washington, DC 20250–3700. announce this Federal Register Paul Kiecker, Instructions: All items submitted by publication on-line through the FSIS Acting Administrator. mail or electronic mail must include the web page located at: http:// [FR Doc. 2018–10484 Filed 5–15–18; 8:45 am] Agency name and docket number FSIS– www.fsis.usda.gov/federal-register. BILLING CODE 3410–DM–P 2018–0018. Comments received in FSIS also will make copies of this response to this docket will be made publication available through the FSIS available for public inspection and Constituent Update, which is used to DEPARTMENT OF AGRICULTURE posted without change, including any provide information regarding FSIS personal information, to http:// Food Safety and Inspection Service policies, procedures, regulations, www.regulations.gov. Federal Register notices, FSIS public Docket: For access to background meetings, and other types of information [Docket No. FSIS–2018–0018] documents or comments received, call that could affect or would be of interest (202) 720–5627 to schedule a time to Notice of Request To Renew an visit the FSIS Docket Room at 1400 to our constituents and stakeholders. Approved Information Collection The Update is available on the FSIS web Independence Avenue SW, Room 6065, (Requirements To Notify FSIS of Washington, DC 20250–3700. page. Through the web page, FSIS is Adulterated or Misbranded Product, FOR FURTHER INFORMATION CONTACT: able to provide information to a much Prepare and Maintain Written Recall Gina broader, more diverse audience. In Procedures, and Document Certain Kouba, Office of Policy and Program addition, FSIS offers an email HACCP Plan Reassessments) Development, Food Safety and subscription service which provides Inspection Service, USDA, 1400 automatic and customized access to AGENCY: Food Safety and Inspection Independence Avenue SW, Room 6065, selected food safety news and Service, USDA. South Building, Washington, DC 20250– information. This service is available at: ACTION: Notice and request for 3700; (202) 720–5627. http://www.fsis.usda.gov/subscribe. comments. SUPPLEMENTARY INFORMATION: Options range from recalls to export Title: Requirements for Official information, regulations, directives, and SUMMARY: In accordance with the Establishments to Notify FSIS of notices. Customers can add or delete Paperwork Reduction Act of 1995 and Adulterated or Misbranded Product, subscriptions themselves, and have the Office of Management and Budget Prepare and Maintain Written Recall option to password protect their (OMB) regulations, the Food Safety and Procedures, and Document Certain accounts. Inspection Service (FSIS) is announcing HACCP Plan Reassessments. its intention to renew the approved USDA Non-Discrimination Statement OMB Control Number: 0583–0144. information collection regarding Expiration Date: 9/30/2018. No agency, officer, or employee of the requirements for official establishments Type of Request: Renewal of an USDA shall, on the grounds of race, to notify FSIS of adulterated or approved information collection. color, national origin, religion, sex, misbranded product, prepare and Abstract: FSIS, by delegation (7 CFR gender identity, sexual orientation, maintain written recall procedures, and 2.18, 2.53), exercises the functions of disability, age, marital status, family/ document certain HACCP plan the Secretary as specified in the Federal parental status, income derived from a reassessments. The approval for this Meat Inspection Act (FMIA) (21 U.S.C. public assistance program, or political information collection will expire on 601, et seq.), the Poultry Products beliefs, exclude from participation in, September 30, 2018. FSIS is making no Inspection Act (PPIA) (21 U.S.C. 451, et deny the benefits of, or subject to changes to the approved collection. The seq.), and the Egg Products Inspection discrimination any person in the United public may comment on either the Act (EPIA) (21 U.S.C. 1031, et seq.). States under any program or activity entire information collection or on one These statutes mandate that FSIS conducted by the USDA. of its three parts. protect the public by verifying that

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meat, poultry, and egg products are safe, Copies of this information collection option to password protect their wholesome, unadulterated, and assessment can be obtained from Gina accounts. properly labeled and packaged. Kouba, Office of Policy and Program USDA Non-Discrimination Statement The regulations at 9 CFR 418.2, 418.3 Development, Food Safety and and 417.4(a)(3) require establishments Inspection Service, USDA, 1400 No agency, officer, or employee of the to notify FSIS of adulterated or Independence Avenue SW, Room 6065, USDA shall, on the grounds of race, misbranded product, prepare and South Building, Washington, DC 20250– color, national origin, religion, sex, maintain written recall procedures, and 3700; (202) 720–5627. gender identity, sexual orientation, document certain HACCP plan Comments are invited on: (a) Whether disability, age, marital status, family/ reassessments. Accordingly, FSIS the proposed collection of information parental status, income derived from a requires three information collection is necessary for the proper performance public assistance program, or political activities under these regulations. First, of FSIS’s functions, including whether beliefs, exclude from participation in, FSIS requires that official the information will have practical deny the benefits of, or subject to establishments notify the appropriate utility; (b) the accuracy of FSIS’s discrimination any person in the United District Office that an adulterated or estimate of the burden of the proposed States under any program or activity misbranded product received by or collection of information, including the conducted by the USDA. originating from the establishment has validity of the method and assumptions entered commerce, if the establishment How to File a Complaint of used; (c) ways to enhance the quality, Discrimination believes or has reason to believe that utility, and clarity of the information to this has happened. Second, FSIS be collected; and (d) ways to minimize To file a complaint of discrimination, requires that establishments prepare and the burden of the collection of complete the USDA Program maintain written procedures for the information, including through the use Discrimination Complaint Form, which recall of meat and poultry products of appropriate automated, electronic, may be accessed online at http:// produced and shipped by the www.ocio.usda.gov/sites/default/files/ mechanical, or other technological _ _ _ _ establishment for use should it become collection techniques, or other forms of docs/2012/Complain combined 6 8 necessary for the establishment to information technology. Comments may 12.pdf, or write a letter signed by you remove product from commerce. These be sent to both FSIS, at the addresses or your authorized representative. written recall procedures have to provided above, and the Desk Officer for Send your completed complaint form specify how the establishment will Agriculture, Office of Information and or letter to USDA by mail, fax, or email: Mail: U.S. Department of Agriculture, decide whether to conduct a product Regulatory Affairs, Office of Director, Office of Adjudication, 1400 recall, and how the establishment will Management and Budget, Washington, Independence Avenue SW, Washington, effect the recall should it decide that DC 20253. one is necessary. Finally, FSIS requires DC 20250–9410. Responses to this notice will be Fax: (202) 690–7442. that establishments document each summarized and included in the request reassessment of the establishment’s Email: [email protected]. for OMB approval. All comments will Persons with disabilities who require HACCP plans. FSIS requires also become a matter of public record. establishments to reassess their HACCP alternative means for communication plans annually and whenever any Additional Public Notification (Braille, large print, audiotape, etc.), changes occur that could affect the should contact USDA’s TARGET Center Public awareness of all segments of at (202) 720–2600 (voice and TDD). hazard analysis or alter the HACCP rulemaking and policy development is plan. For annual reassessments, if the important. Consequently, FSIS will Done at Washington, DC. establishment determines that no announce this Federal Register Paul Kiecker, changes are necessary, documentation publication on-line through the FSIS Acting Administrator. of this determination is not necessary. web page located at: http:// [FR Doc. 2018–10489 Filed 5–15–18; 8:45 am] FSIS is requesting renewal of the www.fsis.usda.gov/federal-register. BILLING CODE 3410–DM–P approved information collection FSIS also will make copies of this addressing paperwork and publication available through the FSIS recordkeeping requirements for these Constituent Update, which is used to three activities. The approval for this DEPARTMENT OF COMMERCE provide information regarding FSIS information collection will expire on policies, procedures, regulations, International Trade Administration September 30, 2018. FSIS is making no Federal Register notices, FSIS public changes to the approved collection. The [A–570–084] meetings, and other types of information public may comment on either the that could affect or would be of interest entire information collection or on one Certain Quartz Surface Products From to our constituents and stakeholders. of its three parts. FSIS has made the the People’s Republic of China: The Update is available on the FSIS web following estimates based upon an Initiation of Less-Than-Fair-Value page. Through the web page, FSIS is information collection assessment. Investigation able to provide information to a much Estimate of Burden of Average Hours AGENCY: Enforcement and Compliance, per Response: 1.159. broader, more diverse audience. In addition, FSIS offers an email International Trade Administration, Respondents: Official meat and Department of Commerce. poultry products establishments. subscription service which provides Estimated Number of Respondents: automatic and customized access to DATES: Applicable May 7, 2018. 6,300. selected food safety news and FOR FURTHER INFORMATION CONTACT: Estimated Number of Responses: information. This service is available at: Andrew Medley or Whitley Herndon at 40,960. http://www.fsis.usda.gov/subscribe. (202) 482–4987 or (202) 482–6274, Estimated Number of Responses per Options range from recalls to export respectively; AD/CVD Operations, Respondent: 6.5. information, regulations, directives, and Enforcement and Compliance, Estimated Total Annual Burden on notices. Customers can add or delete International Trade Administration, Respondents: 47,475. subscriptions themselves, and have the U.S. Department of Commerce, 1401

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Constitution Avenue NW, Washington, comments on the petitioner’s Industry as described in the Appendix to this DC 20230. Support Supplement.7 notice, reflects these clarifications. SUPPLEMENTARY INFORMATION: In accordance with section 732(b) of As discussed in the preamble to the Tariff Act of 1930, as amended (the Commerce’s regulations, we are setting The Petition Act), the petitioner alleges that imports aside a period for interested parties to On April 17, 2018, the U.S. of quartz surface products from China raise issues regarding product coverage Department of Commerce (Commerce) are being, or are likely to be, sold in the (scope).10 Commerce will consider all received an antidumping duty (AD) United States at less than fair value comments received from interested Petition concerning imports of certain within the meaning of section 731 of the parties and, if necessary, will consult quartz surface products (quartz surface Act, and that such imports are with interested parties prior to the products) from the People’s Republic of materially injuring, or threatening issuance of the preliminary China (China), filed in proper form on material injury to, the domestic industry determination. If scope comments behalf of Cambria Company LLC (the producing quartz surface products in include factual information,11 all such petitioner).1 The AD Petition was the United States. Consistent with factual information should be limited to accompanied by a countervailing duty section 732(b)(1) of the Act, the Petition public information. To facilitate (CVD) Petition concerning imports of is accompanied by information preparation of its questionnaires, quartz surface products from China reasonably available to the petitioner Commerce requests that all interested (collectively, Petition). The petitioner is supporting its allegation. parties submit such comments by 5:00 a domestic producer of quartz surface Commerce finds that the petitioner p.m. Eastern Time (ET) on May 29, 2 products. filed the Petition on behalf of the 2018, which is the next business day On April 20, 26, and 30, 2018, domestic industry because the after 20 calendar days from the Commerce requested supplemental 12 petitioner is an interested party as signature date of this notice. Any information pertaining to certain aspects defined in section 771(9)(C) of the Act. rebuttal comments, which may include of the Petition.3 The petitioner factual information, must be filed by Commerce also finds that the petitioner responded to these requests on April 24 5:00 p.m. ET on June 7, 2018, which is demonstrated sufficient industry and 30, and May 1, 2018, respectively.4 10 calendar days from the initial support with respect to the initiation of On May 1, 2018, we received comments comments deadline. the AD investigation that the petitioner on industry support and a polling Commerce requests that any factual is requesting.8 request from M S International, Inc. information parties consider relevant to (MSI), a U.S. importer.5 On May 3, 2018, Period of Investigation the scope of the investigation be the petitioner provided a response to submitted during this period. However, MSI’s comments on industry support.6 Because China is a non-market if a party subsequently finds that On May 4, 2018, MSI submitted economy (NME) country, pursuant to 19 additional factual information CFR 351.204(b)(1), the period of pertaining to the scope of the investigation (POI) is October 1, 2017, 1 See Petitioner’s Letter, ‘‘Petitions for the investigation may be relevant, the party Imposition of Antidumping Duties and through March 31, 2018. may contact Commerce and request Countervailing Duties: Certain Quartz Surface Products from the People’s Republic of China,’’ Scope of the Investigation permission to submit the additional information. All such submissions must dated April 17, 2018 (the Petition). The products covered by this 2 See Volume I of the Petition at 2. be filed on the records of each of the investigation are quartz surface products 3 See Commerce Letter re: Petition for the concurrent AD and CVD investigations. Imposition of Antidumping Duties on Imports of from China. For a full description of the Certain Quartz Surface Products from the People’s scope of this investigation, see the Filing Requirements Republic of China: Supplemental Questions, dated Appendix to this notice. April 20, 2018; Memoranda re: Petitions for the All submissions to Commerce must be Imposition of Antidumping and Countervailing Scope Comments filed electronically using Enforcement Duties on Imports of Certain Quartz Surface and Compliance’s Antidumping Duty Products from the People’s Republic of China, dated During our review of the Petition, and Countervailing Duty Centralized April 27, 2018, and re: Petitions for the Imposition Commerce issued questions to, and 13 of Antidumping and Countervailing Duties on Electronic Service System (ACCESS). Imports of Certain Quartz Surface Products from the received responses from, the petitioner An electronically-filed document must People’s Republic of China, dated May 1, 2018. pertaining to the proposed scope to be received successfully in its entirety 4 See Petitioner’s Letters, ‘‘Certain Quartz Surface ensure that the scope language in the by the time and date it is due. Products from the People’s Republic of China: Petition is an accurate reflection of the Response to Supplemental Questions— Documents exempted from the Antidumping,’’ dated April 24, 2018 (AD products for which the domestic electronic submission requirements Supplement); ‘‘Certain Quartz Surface Products industry is seeking relief.9 As a result of must be filed manually (i.e., in paper from the People’s Republic of China: Responses to these exchanges, the scope of the Supplemental Questions—General Issues,’’ dated Petition was modified to clarify the 10 April 24, 2018 (General Issues Supplement); See Antidumping Duties; Countervailing ‘‘Certain Quartz Surface Products from the People’s description of merchandise covered by Duties, Final Rule, 62 FR 27296, 27323 (May 19, Republic of China: Response to Supplemental the Petition. The description of the 1997). Questions—Antidumping,’’ dated April 30, 2018 merchandise covered by this initiation, 11 See 19 CFR 351.102(b)(21) (defining ‘‘factual (Second Supplement); and ‘‘Certain Quartz Surface information’’). Products from the People’s Republic of China: 12 See 19 CFR 351.303(b). Response to Supplemental Questions re: Scope,’’ 7 See letter from M S International, Inc., 13 See Antidumping and Countervailing Duty dated May 1, 2018 (Scope Supplement). ‘‘Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; 5 See letter from M S International, Inc., ‘‘Quartz Investigations of Quartz Surface Products from the Administrative Protective Order Procedures, 76 FR Surface Products from the People’s Republic of People’s Republic of China: Reply to Petitioner’s 39263 (July 6, 2011); see also Enforcement and China: Comments on the Lack of Standing of the Comments on Lack of Standing,’’ dated May 4, 2018 Compliance; Change of Electronic Filing System Petitioner and Requests for Action,’’ dated May 1, (Second M S International Standing Challenge). Name, 79 FR 69046 (November 20, 2014) for details 2018 (M S International Standing Challenge). 8 See the ‘‘Determination of Industry Support for of Commerce’s electronic filing requirements, 6 See petitioner’s letter, ‘‘Certain Quartz Surface the Petition’’ section, infra. effective August 5, 2011. Information on help using Products from the People’s Republic of China: 9 See General Issues Supplement at 2–6 and ACCESS can be found at https://access.trade.gov/ Petitioner’s Response to MSI’s Comments on Exhibit 2; see also Second Supplement at 1 and help.aspx and a handbook can be found at https:// Standing,’’ dated May 3, 2018 (Industry Support Supplemental Exhibit I–1; and Scope Supplement access.trade.gov/help/Handbook%20on Supplement). at Exhibit 1. %20Electronic%20Filling%20Procedures.pdf.

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form) with Enforcement and (A); or (ii) determine industry support In determining whether the petitioner Compliance’s APO/Dockets Unit, Room using a statistically valid sampling has standing under section 732(c)(4)(A) 18022, U.S. Department of Commerce, method to poll the ‘‘industry.’’ of the Act, we considered the industry 1401 Constitution Avenue NW, Section 771(4)(A) of the Act defines support data contained in the Petition Washington, DC 20230, and stamped the ‘‘industry’’ as the producers as a with reference to the domestic like with the date and time of receipt by the whole of a domestic like product. Thus, product as defined in the ‘‘Scope of the applicable deadlines. to determine whether a petition has the Investigation,’’ in the Appendix to this requisite industry support, the statute notice. To establish industry support, Comments on Product Characteristics directs Commerce to look to producers the petitioner provided its own for AD Questionnaires and workers who produce the domestic production of the domestic like product Commerce is providing interested like product. The International Trade in 2017 and compared this to the parties an opportunity to comment on Commission (ITC), which is responsible estimated total production of the the appropriate physical characteristics for determining whether ‘‘the domestic domestic like product for the entire of quartz surface products to be reported industry’’ has been injured, must also domestic industry.19 We relied on data in response to Commerce’s AD determine what constitutes a domestic the petitioner provided for purposes of questionnaires. This information will be like product in order to define the measuring industry support.20 used to identify the key physical industry. While both Commerce and the In a letter dated May 1, 2018, MSI, a characteristics of the merchandise under ITC must apply the same statutory U.S. importer, submitted comments on consideration in order to report the definition regarding the domestic like industry support and requested that relevant factors of production product,15 they do so for different Commerce poll the industry to accurately, as well as to develop purposes and pursuant to a separate and determine industry support.21 The appropriate product-comparison distinct authority. In addition, petitioner responded to these comments criteria. Commerce’s determination is subject to in the Industry Support Supplement, Interested parties may provide any limitations of time and information. dated May 3, 2018. In a letter dated May information or comments that they feel Although this may result in different 4, 2018, MSI submitted comments on are relevant to the development of an definitions of the like product, such the petitioner’s Industry Support accurate list of physical characteristics. differences do not render the decision of Supplement.22 For further discussion of In order to consider the suggestions of either agency contrary to law.16 these comments, see Attachment II of interested parties in developing and Section 771(10) of the Act defines the the Initiation Checklist. issuing the AD questionnaire, all domestic like product as ‘‘a product Our review of the data provided in the product characteristics comments must which is like, or in the absence of like, Petition, the General Issues Supplement, be filed by 5:00 p.m. ET on May 29, most similar in characteristics and uses Industry Support Supplement, and 2018, which is the next business day with, the article subject to an other information readily available to after 20 calendar days from the investigation under this title.’’ Thus, the Commerce indicates that the petitioner signature date of this notice.14 Any reference point from which the has established industry support for the rebuttal comments must be filed by 5:00 domestic like product analysis begins is Petition.23 First, the Petition established p.m. ET on June 5, 2018. All comments ‘‘the article subject to an investigation’’ support from domestic producers (or and submissions to Commerce must be (i.e., the class or kind of merchandise to workers) accounting for more than 50 filed electronically using ACCESS, as be investigated, which normally will be percent of the total production of the explained above, on the record of the the scope as defined in the petition). domestic like product and, as such, China less-than-fair-value investigation. With regard to the domestic like Commerce is not required to take further action in order to evaluate industry Determination of Industry Support for product, the petitioner does not offer a support (e.g., polling).24 Second, the the Petition definition of the domestic like product distinct from the scope of the domestic producers (or workers) have Section 732(b)(1) of the Act requires investigation.17 Based on our analysis of met the statutory criteria for industry that a petition be filed on behalf of the the information submitted on the support under section 732(c)(4)(A)(i) of domestic industry. Section 732(c)(4)(A) record, we have determined that quartz the Act because the domestic producers of the Act provides that a petition meets surface products, as defined in the (or workers) who support the Petition this requirement if the domestic scope, constitute a single domestic like account for at least 25 percent of the producers or workers who support the product, and we have analyzed industry total production of the domestic like petition account for: (i) At least 25 support in terms of that domestic like product.25 Finally, the domestic percent of the total production of the product.18 producers (or workers) have met the domestic like product; and (ii) more statutory criteria for industry support than 50 percent of the production of the 15 See section 771(10) of the Act. domestic like product produced by that 16 See USEC, Inc. v. United States, 132 F. Supp. 19 See Volume I of the Petition at 3 and Exhibit portion of the industry expressing 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. I–3; see also General Issues Supplement at 13–14 support for, or opposition to, the v. United States, 688 F. Supp. 639, 644 (CIT 1988), and Exhibit 15. 20 Id. at 3 and Exhibit I–3; see also General Issues petition. Moreover, section 732(c)(4)(D) aff’d 865 F.2d 240 (Fed. Cir. 1989)). 17 See Volume I of the Petition at 13. Supplement at 13–14 and Exhibit 15; see also of the Act provides that, if the petition 18 For a discussion of the domestic like product Industry Support Supplement at 3 and Exhibit 1. does not establish support of domestic analysis as applied to this case and information For further discussion, see Initiation Checklist at Attachment II. producers or workers accounting for regarding industry support, see Initiation 21 See M S International Standing Challenge. more than 50 percent of the total Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing 22 See Second M S International Standing production of the domestic like product, Duty Petitions Covering Certain Quartz Surface Challenge. Commerce shall: (i) Poll the industry or Products from the People’s Republic of China 23 See Volume I of the Petition, at 3 and Exhibit rely on other information in order to (Attachment II). This checklist is dated I–3; see also General Issues Supplement at 13–14 determine if there is support for the concurrently with this notice and on file and Exhibit 15; see also Industry Support electronically via ACCESS. Access to documents Supplement at 3 and Exhibit 1. For further petition, as required by subparagraph filed via ACCESS is also available in the Central discussion, see Initiation Checklist at Attachment II. Records Unit, Room B8024 of the main Department 24 Id.; see also section 732(c)(4)(D) of the Act. 14 See 19 CFR 351.303(b). of Commerce building. 25 See Initiation Checklist at Attachment II.

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under section 732(c)(4)(A)(ii) of the Act Allegations of Sales at Less Than Fair regarding surrogate country selection because the domestic producers (or Value and, pursuant to 19 CFR workers) who support the Petition The following is a description of the 351.301(c)(3)(i), will be provided an account for more than 50 percent of the allegations of sales at less than fair value opportunity to submit publicly available production of the domestic like product upon which Commerce based its information to value FOPs within 30 produced by that portion of the industry decision to initiate an AD investigation days before the scheduled date of the expressing support for, or opposition to, of imports of quartz surface products preliminary determination. 26 the Petition. Accordingly, Commerce from China. The sources of data for the Factors of Production determines that the Petition was filed on deductions and adjustments relating to Because information regarding the behalf of the domestic industry within U.S. price and NV are discussed in FOPs and volume of inputs consumed the meaning of section 732(b)(1) of the greater detail in the Initiation Checklist. Act. by Chinese producers/exporters was not Commerce finds that the petitioner Export Price reasonably available, the petitioner used filed the Petition on behalf of the The petitioner based export price (EP) its own product-specific consumption domestic industry because it is an on quoted offer prices for quartz surface rates to estimate the Chinese manufacturers’ FOPs.37 The petitioner interested party as defined in section products produced in China.31 The valued the estimated FOPs using 771(9)(C) of the Act, and it has petitioner made no deductions from surrogate values from Mexico, as noted demonstrated sufficient industry U.S. price.32 above.38 Where appropriate, the support with respect to the AD Normal Value petitioner used the average POI investigation that it is requesting that exchange rate to convert the data to U.S. Commerce initiate.27 Commerce considers China to be an NME country.33 In accordance with dollars.39 Allegations and Evidence of Material section 771(18)(C)(i) of the Act, any Fair Value Comparisons Injury and Causation determination that a foreign country is an NME country shall remain in effect Based on the data provided by the The petitioner alleges that the U.S. petitioner, there is reason to believe that industry producing the domestic like until revoked by Commerce. Therefore, we continue to treat China as an NME imports of quartz surface products from product is being materially injured, or is China are being, or are likely to be, sold threatened with material injury, by country for purposes of the initiation of this investigation. Accordingly, NV in in the United States at less than fair reason of the imports of the subject China is appropriately based on factors value. Based on comparisons of EP to merchandise sold at less than normal of production (FOPs) valued in a NV in accordance with sections 772 and value (NV). In addition, the petitioner surrogate market economy country, in 773 of the Act, the estimated dumping alleges that subject imports exceed the accordance with section 773(c) of the margins for quartz surface products negligibility threshold provided for 34 from China range from 303.38 percent to 28 Act. under section 771(24)(A) of the Act. The petitioner claims that Mexico is 336.69 percent.40 The petitioner contends that the an appropriate surrogate country for Initiation of Less-than-Fair-Value industry’s injured condition is China because it is a market economy Investigation illustrated by a significant and country that is at a level of economic increasing volume of subject imports; development comparable to that of Based upon the examination of the reduced market share; underselling and China, it is a significant producer of Petition, we find that the Petition meets price depression or suppression; lost comparable merchandise, and public the requirements of section 732 of the sales and lost revenues; negative effects information is available to value factor Act. Therefore, we are initiating an AD on the existing product development input costs.35 The petitioner provided investigation to determine whether and production efforts of the domestic publicly available information from imports of quartz surface products from industry; and negative impact on the Mexico to value all FOPs.36 Based on China are being, or are likely to be, sold domestic industry’s financial and the information provided by the in the United States at less than fair operating indicators, such as sales, petitioner, we determine that it is value. In accordance with section profits, return on investment, cash flow, appropriate to use Mexico as the 733(b)(1)(A) of the Act and 19 CFR capacity utilization, and employment.29 primary surrogate country for initiation 351.205(b)(1), unless postponed, we will We have assessed the allegations and purposes. make our preliminary determination no supporting evidence regarding material Interested parties will have the later than 140 days after the date of this injury, threat of material injury, and opportunity to submit comments initiation. causation, and we have determined that Respondent Selection these allegations are properly supported 31 See Initiation Checklist. The petitioner named 308 companies by adequate evidence, and meet the 32 Id. in China as producers/exporters of statutory requirements for initiation.30 33 See Antidumping Duty Investigation of Certain Aluminum Foil from the People’s Republic of quartz surface products.41 After China: Affirmative Preliminary Determination of considering our resources, Commerce 26 Id. Sales at Less-Than-Fair Value and Postponement of has determined that we do not have 27 Id. Final Determination, 82 FR 50858, 50861 sufficient administrative resources to 28 See General Issues Supplement at 14–15 and (November 2, 2017) (citing Memorandum to Gary Exhibit 16. Taverman, ‘‘China’s Status as a Non-Market 29 See Volume I of the Petition at 10–30 and Economy,’’ dated October 26, 2017), unchanged in 37 Id. at Exhibit II–11 at Attachments A and B. Exhibits I–3 and I–9 through I–19; see also General Certain Aluminum Foil from the People’s Republic 38 Id. at Exhibit II–11; see also AD Supplement at Issues Supplement at 14–15 and Exhibits 16 of China: Final Determination of Sales at Less Than Exhibits II–11(D) and II–11(E); and Second through 18. Fair Value, 83 FR 9282 (March 5, 2018). Supplement at 2–4 and Exhibits II–11(D) through 30 See Initiation Checklist at Attachment III, 34 See Initiation Checklist. II–11(J)(1). Analysis of Allegations and Evidence of Material 35 See Volume II of the Petition at 2–5. 39 See Second Supplement at 2 and Exhibits II– Injury and Causation for the Antidumping and 36 Id. at 7 and Exhibit II–11; see also AD 11(K) and II–11(I)(1). Countervailing Duty Petitions Covering Certain Supplement at Exhibits II–11(D) and II–11(E); and 40 See Initiation Checklist. Quartz Surface Products from the People’s Republic Second Supplement at 4–5 and Exhibits II–11(D) 41 See General Issues Supplement at 1–2 and of China. and II–11(J)(1). Exhibit 1.

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issue quantity and value (Q&V) application in this investigation are ITC Notification questionnaires to all 308 identified outlined in detail in the application We will notify the ITC of our producers and exporters. Therefore, itself, which is available on Commerce’s initiation, as required by section 732(d) Commerce has determined to limit the website at http://enforcement.trade.gov/ of the Act. number of Q&V questionnaires we will nme/nme-sep-rate.html. The separate- send out to exporters and producers rate application will be due 30 days Preliminary Determination by the ITC identified in U.S. Customs and Border after publication of this initiation The ITC will preliminarily determine, Protection (CBP) data for U.S. imports of notice.45 Exporters and producers who within 45 days after the date on which quartz surface products during the POI submit a separate-rate application and the Petition was filed, whether there is under the appropriate Harmonized have been selected as mandatory a reasonable indication that imports of Tariff Schedule of the United States respondents will be eligible for quartz surface products from China are number listed in the ‘‘Scope of the consideration for separate-rate status materially injuring or threatening Investigation,’’ in the Appendix. only if they respond to all parts of material injury to a U.S. industry. A Accordingly, Commerce will send Q&V Commerce’s AD questionnaire as negative ITC determination will result questionnaires based on producers and mandatory respondents. Commerce in the investigation being terminated.47 exporters that are identified in the requires that companies from China Otherwise, the investigation will Petition and that also appear in the CBP submit a response to both the Q&V proceed according to statutory and data. questionnaire and the separate-rate regulatory time limits. On April 30, 2018, Commerce application by the respective deadlines released CBP data under administrative in order to receive consideration for Submission of Factual Information protective order (APO) to all parties separate-rate status. Companies not Factual information is defined in 19 with access to information protected by filing a timely Q&V response will not CFR 351.102(b)(21) as: (i) Evidence APO and indicated that interested receive separate-rate consideration. submitted in response to questionnaires; parties wishing to comment on the CBP (ii) evidence submitted in support of Use of Combination Rates data must do so within three business allegations; (iii) publicly available days of the publication date of the Commerce will calculate combination information to value factors under 19 notice of initiation of this AD rates for certain respondents that are CFR 351.408(c) or to measure the investigation.42 We further stated that eligible for a separate rate in an NME adequacy of remuneration under 19 CFR we will not accept rebuttal comments.43 investigation. The Separate Rates and 351.511(a)(2); (iv) evidence placed on In addition, Commerce will post the Combination Rates Bulletin states: the record by Commerce; and (v) Q&V questionnaire along with filing {w}hile continuing the practice of assigning evidence other than factual information instructions on the Enforcement and separate rates only to exporters, all separate described in (i)–(iv). 19 CFR 351.301(b) Compliance website at http:// rates that the Department will now assign in requires any party, when submitting www.trade.gov/enforcement/news.asp. its NME Investigation will be specific to factual information, to specify under In accordance with our standard those producers that supplied the exporter which subsection of 19 CFR practice for respondent selection in AD during the period of investigation. Note, 351.102(b)(21) the information is being however, that one rate is calculated for the cases involving NME countries, we 48 exporter and all of the producers which submitted and, if the information is intend to base respondent selection on supplied subject merchandise to it during the submitted to rebut, clarify, or correct the responses to the Q&V questionnaire period of investigation. This practice applies factual information already on the that we receive. both to mandatory respondents receiving an record, to provide an explanation Producers/exporters of quartz surface individually calculated separate rate as well identifying the information already on products that do not receive Q&V as the pool of non-investigated firms the record that the factual information questionnaires by mail may still submit receiving the weighted-average of the seeks to rebut, clarify, or correct.49 Time a response to the Q&V questionnaire individually calculated rates. This practice is referred to as the application of ‘‘combination limits for the submission of factual and can obtain a copy of the Q&V information are addressed in 19 CFR questionnaire from Enforcement & rates’’ because such rates apply to specific combinations of exporters and one or more 351.301, which provides specific time Compliance’s website. The Q&V producers. The cash-deposit rate assigned to limits based on the type of factual response must be submitted by the an exporter will apply only to merchandise information being submitted. Interested relevant Chinese exporters/producers no both exported by the firm in question and parties should review the regulations later than 5:00 p.m. ET on May 21, 2018. produced by a firm that supplied the exporter 46 prior to submitting factual information All Q&V responses must be filed during the period of investigation. in this investigation. electronically via ACCESS. Distribution of Copies of the Petition Extensions of Time Limits Separate Rates In accordance with section Parties may request an extension of In order to obtain separate-rate status 732(b)(3)(A)(i) of the Act and 19 CFR time limits before the expiration of a in an NME investigation, exporters and 351.202(f), copies of the public version time limit established under 19 CFR producers must submit a separate-rate of the Petition have been provided to 44 351.301, or as otherwise specified by the application. The specific requirements the government of China via ACCESS. Secretary. In general, an extension for submitting a separate-rate To the extent practicable, we will request will be considered untimely if it attempt to provide a copy of the public is filed after the expiration of the time 42 See Memorandum, ‘‘Certain Quartz Surface version of the Petition to each exporter Products from China Antidumping Duty Petition: limit established under 19 CFR 351.301. Release of Customs Data from U.S. Customs and named in the Petition, as provided For submissions that are due from Border Protection,’’ dated April 30, 2018. under 19 CFR 351.203(c)(2). multiple parties simultaneously, an 43 Id. extension request will be considered 44 See Policy Bulletin 05.1: Separate-Rates 45 Although in past investigations this deadline untimely if it is filed after 10:00 a.m. ET Practice and Application of Combination Rates in was 60 days, consistent with 19 CFR 351.301(a), Antidumping Investigation involving Non-Market which states that ‘‘the Secretary may request any Economy Countries (April 5, 2005), available at person to submit factual information at any time 47 Id. http://enforcement.trade.gov/policy/bull05-1.pdf during a proceeding,’’ this deadline is now 30 days. 48 See 19 CFR 351.301(b). (Policy Bulletin 05.1). 46 See Policy Bulletin 05.1 at 6 (emphasis added). 49 See 19 CFR 351.301(b)(2).

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on the due date. Under certain Dated: May 7, 2018. investigation are crushed glass surface circumstances, we may elect to specify Gary Taverman, products. Crushed glass surface products are a different time limit by which Deputy Assistant Secretary for Antidumping surface products in which the crushed glass content is greater than any other single extension requests will be considered and Countervailing Duty Operations, performing the non-exclusive functions and material, by actual weight. untimely for submissions which are due The products subject to the scope are from multiple parties simultaneously. In duties of the Assistant Secretary for Enforcement and Compliance. currently classified in the Harmonized Tariff such a case, we will inform parties in Schedule of the United States (HTSUS) under the letter or memorandum setting forth Appendix—Scope of the Investigation the following subheading: 6810.99.0010. the deadline (including a specified time) Subject merchandise may also enter under The merchandise covered by the subheadings 6810.11.0010, 6810.11.0070, by which extension requests must be investigation is certain quartz surface 6810.19.1200, 6810.19.1400, 6810.19.5000, 52 filed to be considered timely. An products. Quartz surface products consist 6810.91.0000, 6810.99.0080, 6815.99.4070, extension request must be made in a of slabs and other surfaces created from a 2506.10.0010, 2506.10.0050, 2506.20.0010, separate, stand-alone submission; under mixture of materials that includes 2506.20.0080. The HTSUS subheadings set predominately silica (e.g., quartz, quartz forth above are provided for convenience and limited circumstances we will grant powder, cristobalite) as well as a resin binder untimely-filed requests for the extension U.S. Customs purposes only. The written (e.g., an unsaturated polyester). The description of the scope is dispositive. of time limits. Parties should review incorporation of other materials, including, Extension of Time Limits; Final Rule, 78 but not limited to, pigments, cement, or other [FR Doc. 2018–10533 Filed 5–15–18; 8:45 am] FR 57790 (September 20, 2013), additives does not remove the merchandise BILLING CODE 3510–DS–P available at http://www.gpo.gov/fdsys/ from the scope of the investigation. However, the scope of the investigation only includes pkg/FR-2013-09-20/html/2013- products where the silica content is greater DEPARTMENT OF COMMERCE 22853.htm, prior to submitting factual than any other single material, by actual information in this investigation. weight. Quartz surface products are typically International Trade Administration Certification Requirements sold as rectangular slabs with a total surface area of approximately 45 to 60 square feet [C–570–085] Any party submitting factual and a nominal thickness of one, two, or three information in an AD or CVD centimeters. However, the scope of this Certain Quartz Surface Products From proceeding must certify to the accuracy investigation includes surface products of all the People’s Republic of China: and completeness of that information.50 other sizes, thicknesses, and shapes. In Initiation of Countervailing Duty Parties must use the certification addition to slabs, the scope of this Investigation formats provided in 19 CFR investigation includes, but is not limited to, other surfaces such as countertops, AGENCY: Enforcement and Compliance, 351.303(g).51 Commerce intends to backsplashes, vanity tops, bar tops, work International Trade Administration, reject factual submissions if the tops, tabletops, flooring, wall facing, shower Department of Commerce. submitting party does not comply with surrounds, fire place surrounds, mantels, and DATES: Applicable May 7, 2018. the applicable certification tiles. Certain quartz surface products are requirements. covered by the investigation whether FOR FURTHER INFORMATION CONTACT: polished or unpolished, cut or uncut, Darla Brown at (202) 482–1791, Joshua Notification to Interested Parties fabricated or not fabricated, cured or Tucker at (202) 482–2044, or Terre uncured, edged or not edged, finished or Keaton Stefanova at (202) 482–1280, Interested parties must submit unfinished, thermoformed or not AD/CVD Operations, Enforcement and applications for disclosure under APO thermoformed, packaged or unpackaged, and Compliance, International Trade regardless of the type of surface finish. in accordance with 19 CFR 351.305. On Administration, U.S. Department of January 22, 2008, Commerce published In addition, quartz surface products are covered by the investigation whether or not Commerce, 1401 Constitution Avenue Antidumping and Countervailing Duty they are imported attached to, or in NW, Washington, DC 20230. Proceedings: Documents Submission conjunction with, non-subject merchandise SUPPLEMENTARY INFORMATION: Procedures; APO Procedures, 73 FR such as sinks, sink bowls, vanities, cabinets, 3634 (January 22, 2008). Parties wishing and furniture. If quartz surface products are The Petition to participate in this investigation imported attached to, or in conjunction with, On April 17, 2018, the U.S. should ensure that they meet the such non-subject merchandise, only the Department of Commerce (Commerce) quartz surface product is covered by the requirements of these procedures (e.g., scope. received a countervailing duty (CVD) the filing of letters of appearance as Subject merchandise includes material petition concerning imports of certain discussed at 19 CFR 351.103(d)). matching the above description that has been quartz surface products (quartz surface products) from the People’s Republic of This notice is issued and published finished, packaged, or otherwise fabricated in a third country, including by cutting, China (China), filed in proper form on pursuant to sections 732(c)(2) and 777(i) polishing, curing, edging, thermoforming, behalf of Cambria Company LLC (the of the Act, and 19 CFR 351.203(c). attaching to, or packaging with another petitioner).1 The CVD Petition was product, or any other finishing, packaging, or accompanied by an antidumping duty fabrication that would not otherwise remove (AD) Petition concerning imports of the merchandise from the scope of the investigation if performed in the country of quartz surface products China. The manufacture of the quartz surface products. petitioner is a domestic producer of The scope of the investigation does not quartz surface products.2 cover quarried stone surface products, such On April 20, 2018, Commerce 50 See section 782(b) of the Act. as granite, marble, soapstone, or quartzite. requested supplemental information 51 See also Certification of Factual Information to Specifically excluded from the scope of the Import Administration During Antidumping and 1 See the petitioner’s Letter, ‘‘Petitions for the Countervailing Duty Proceedings, 78 FR 42678 (July 52 Quartz surface products may also generally be Imposition of Antidumping and Countervailing 17, 2013) (Final Rule). Answers to frequently asked referred to as engineered stone or quartz, artificial Duties: Certain Quartz Surface Products from the questions regarding the Final Rule are available at stone or quartz, agglomerated stone or quartz, People’s Republic of China,’’ dated April 17, 2018 http://enforcement.trade.gov/tlei/notices/factual_ synthetic stone or quartz, processed stone or quartz, (the Petition). info_final_rule_FAQ_07172013.pdf. manufactured stone or quartz, and Bretonstone®. 2 Id. at Volume I of the Petition at I–2.

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pertaining to certain aspects of the support necessary for the initiation of submitted during this period. However, Petition. The petitioner filed additional the requested CVD investigation.8 if a party subsequently finds that information on April 24, 2018.3 On May additional factual information Period of Investigation 1, 2018, Commerce requested that the pertaining to the scope of the petitioner clarify the scope of the Because the Petition was filed on investigation may be relevant, the party Petition, and in response, the petitioner April 17, 2018, the period of may contact Commerce and request submitted certain revisions to the investigation is January 1, 2017, through permission to submit the additional scope.4 On May 1, 2018, we received December 31, 2017. information. All such submissions must comments on industry support and a Scope of the Investigation be filed on the records of the concurrent polling request from M S International, AD and CVD investigations. The products covered by this Inc. (MSI), a U.S. importer.5 On May 3, investigation are quartz surface products Filing Requirements 2018, the petitioner provided a response from China. For a full description of the All submissions to Commerce must be to MSI’s comments on industry scope of this investigation, see the filed electronically using Enforcement support.6 On May 4, 2018, MSI Appendix to this notice. and Compliance’s Antidumping Duty submitted comments on the petitioner’s and Countervailing Duty Centralized Industry Support Supplement.7 Scope Comments Electronic Service System (ACCESS).13 In accordance with section 702(b)(1) During our review of the Petition, An electronically filed document must of the Tariff Act of 1930, as amended Commerce issued questions to, and be received successfully in its entirety (the Act), the petitioner alleges that the received responses from, the petitioner by the time and date it is due. Government of China (GOC) is pertaining to the proposed scope to Documents exempted from the providing countervailable subsidies, ensure that the scope language in the electronic submission requirements within the meaning of sections 701 and Petition is an accurate reflection of the must be filed manually (i.e., in paper 771(5) of the Act, to producers of quartz products for which the domestic form) with Enforcement and surface products in China and imports industry is seeking relief.9 As a result of Compliance’s APO/Dockets Unit, Room of such products are materially injuring, these exchanges, the scope of the 18022, U.S. Department of Commerce, or threatening material injury to, the Petition was modified to clarify the 1401 Constitution Avenue NW, domestic quartz surface products description of merchandise covered by Washington, DC 20230, and stamped industry in the United States. Consistent the Petition. The description of the with the date and time of receipt by the with section 702(b)(1) of the Act and 19 merchandise covered by this initiation, applicable deadlines. as described in the Appendix to this CFR 351.202(b), for those alleged Consultations programs on which we are initiating a notice, reflects these clarifications. CVD investigation, the Petition is As discussed in the Preamble to Pursuant to sections 702(b)(4)(A)(i) accompanied by information reasonably Commerce’s regulations, we are setting and (ii) of the Act, Commerce notified available to the petitioner supporting its aside a period for interested parties to representatives of the GOC of the receipt allegations. raise issues regarding product coverage of the Petition and provided them the (scope).10 Commerce will consider all opportunity for consultations with Commerce finds that the petitioner comments received from interested respect to the Petition.14 The GOC did filed the Petition on behalf of the parties and, if necessary, will consult not request consultations. domestic industry because the with interested parties prior to the Determination of Industry Support for petitioner is an interested party as issuance of the preliminary the Petition defined in section 771(9)(C) of the Act. determination. If scope comments Commerce also finds that the petitioner include factual information,11 all such Section 702(b)(1) of the Act requires demonstrated sufficient industry factual information should be limited to that a petition be filed on behalf of the public information. To facilitate domestic industry. Section 702(c)(4)(A) 3 See the petitioner’s Letter, ‘‘Certain Quartz preparation of its questionnaires, of the Act provides that a petition meets Surface Products from the People’s Republic of Commerce requests that all interested this requirement if the domestic China: Response to Supplemental Questions— producers or workers who support the General Issues,’’ dated April 24, 2018 (General parties submit such comments by 5:00 Issues Supplement). See also Petitioner’s Letter, p.m. Eastern Time (ET) on May 29, petition account for: (i) At least 25 ‘‘Certain Quartz Surface Products from the People’s 2018, which is the next business day percent of the total production of the Republic of China: Response to Supplemental after 20 calendar days from the domestic like product; and (ii) more Questions—Countervailing Duties,’’ dated April 24, than 50 percent of the production of the 2018. signature date of this notice. Any 4 See the petitioner’s Letter, ‘‘Certain Quartz rebuttal comments, which may include domestic like product produced by that Surface Products from the People’s Republic of factual information, must be filed by portion of the industry expressing China: Response to Supplemental Questions re: 5:00 p.m. ET on June 8, 2018, which is Scope,’’ dated May 1, 2018. 13 See Antidumping and Countervailing Duty 5 10 calendar days from the initial See letter from M S International, Inc., ‘‘Quartz 12 Proceedings: Electronic Filing Procedures; Surface Products from the People’s Republic of comments deadline. Administrative Protective Order Procedures, 76 FR China: Comments on the Lack of Standing of the Commerce requests that any factual 39263 (July 6, 2011). See also Enforcement and Petitioner and Requests for Action,’’ dated May 1, information parties consider relevant to Compliance: Change of Electronic Filing System 2018 (M S International Standing Challenge). the scope of the investigation be Name, 79 FR 69046 (November 20, 2014) for details 6 See the petitioner’s letter, ‘‘Certain Quartz of Commerce’s electronic filing requirements, Surface Products from the People’s Republic of which went into effect on August 5, 2011. 8 China: Petitioner’s Response to MSI’s Comments on See ‘‘Determination of Industry Support for the Information on help using ACCESS can be found at Standing,’’ dated May 3, 2018 (Industry Support Petition’’ section, infra. https://access.trade.gov/help.aspx, and a handbook Supplement). 9 See General Issues Supplement, at 3–5. can be found at https://access.trade.gov/help/ 7 letter from M S International, Inc., 10 See Antidumping Duties; Countervailing Handbook%20on%20Electronic%20Filling%20 ‘‘Antidumping and Countervailing Duty Duties, Final Rule, 62 FR 27296, 27323 (May 19, Procedures.pdf. Investigations of Quartz Surface Products from the 1997) (Preamble). 14 See Letter from Commerce, ‘‘Countervailing People’s Republic of China: Reply to Petitioner’s 11 See 19 CFR 351.102(b)(21) (defining ‘‘factual Duty Petition on Certain Quartz Surface Products Comments on Lack of Standing,’’ dated May 4, 2018 information’’). from the People’s Republic of China,’’ dated April (Second M S International Standing Challenge). 12 See 19 CFR 351.303(b). 18, 2018.

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support for, or opposition to, the support in terms of that domestic like Commerce is not required to take further petition. Moreover, section 702(c)(4)(D) product.18 action in order to evaluate industry of the Act provides that, if the petition In determining whether the petitioner support (e.g., polling).24 Second, the does not establish support of domestic has standing under section 702(c)(4)(A) domestic producers (or workers) have producers or workers accounting for of the Act, we considered the industry met the statutory criteria for industry more than 50 percent of the total support data contained in the Petition support under section 702(c)(4)(A)(i) of production of the domestic like product, with reference to the domestic like the Act because the domestic producers Commerce shall: (i) Poll the industry or product as defined in the ‘‘Scope of the (or workers) who support the Petition rely on other information in order to Investigation,’’ in the Appendix to this account for at least 25 percent of the determine if there is support for the notice. To establish industry support, total production of the domestic like petition, as required by subparagraph the petitioner provided its own product.25 Finally, the domestic (A); or (ii) determine industry support production of the domestic like product producers (or workers) have met the using a statistically valid sampling in 2017 and compared this to the statutory criteria for industry support method to poll the ‘‘industry.’’ estimated total production of the under section 702(c)(4)(A)(ii) of the Act Section 771(4)(A) of the Act defines domestic like product for the entire because the domestic producers (or 19 the ‘‘industry’’ as the producers as a domestic industry. We relied on data workers) who support the Petition account for more than 50 percent of the whole of a domestic like product. Thus, the petitioner provided for purposes of 20 production of the domestic like product to determine whether a petition has the measuring industry support. In a letter dated May 1, 2018, MSI, a produced by that portion of the industry requisite industry support, the statute U.S. importer, submitted comments on expressing support for, or opposition to, directs Commerce to look to producers industry support and requested that the Petition.26 Accordingly, Commerce and workers who produce the domestic Commerce poll the industry to determines that the Petition was filed on like product. The International Trade determine industry support.21 The behalf of the domestic industry within Commission (ITC), which is responsible petitioner responded to these comments the meaning of section 702(b)(1) of the for determining whether ‘‘the domestic in the Industry Support Supplement, Act. industry’’ has been injured, must also dated May 3, 2018. In a letter dated May Commerce finds that the petitioner determine what constitutes a domestic 4, 2018, MSI submitted comments on filed the Petition on behalf of the like product in order to define the the petitioner’s Industry Support domestic industry because it is an industry. While both Commerce and the Supplement.22 For further discussion of interested party as defined in section ITC must apply the same statutory these comments, see Attachment II of 771(9)(C) of the Act, and it has definition regarding the domestic like the Initiation Checklist. demonstrated sufficient industry product,15 they do so for different Our review of the data provided in the support with respect to the CVD purposes and pursuant to a separate and Petition, the General Issues Supplement, investigation that it is requesting that distinct authority. In addition, Industry Support Supplement, and Commerce initiate.27 Commerce’s determination is subject to other information readily available to Injury Test limitations of time and information. Commerce indicates that the petitioner Although this may result in different has established industry support for the Because China is a ‘‘Subsidies definitions of the like product, such Petition.23 First, the Petition established Agreement Country’’ within the differences do not render the decision of support from domestic producers (or meaning of section 701(b) of the Act, either agency contrary to law.16 workers) accounting for more than 50 section 701(a)(2) of the Act applies to Section 771(10) of the Act defines the percent of the total production of the this investigation. Accordingly, the ITC domestic like product as ‘‘a product domestic like product and, as such, must determine whether imports of the which is like, or in the absence of like, subject merchandise from China most similar in characteristics and uses 18 For a discussion of the domestic like product materially injure, or threaten material with, the article subject to an analysis as applied to this case and information injury to, a U.S. industry. investigation under this title.’’ Thus, the regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Certain Quartz Allegations and Evidence of Material reference point from which the Surface Products from the People’s Republic of Injury and Causation domestic like product analysis begins is China (Initiation Checklist), at Attachment II, The petitioner alleges that imports of ‘‘the article subject to an investigation’’ Analysis of Industry Support for the Antidumping the subject merchandise are benefitting (i.e., the class or kind of merchandise to and Countervailing Duty Petitions Covering Certain Quartz Surface Products from the People’s Republic from countervailable subsidies and that be investigated, which normally will be of China (Attachment II). This checklist is dated such imports are causing, or threaten to the scope as defined in the petition). concurrently with this notice and on file cause, material injury to the U.S. electronically via ACCESS. Access to documents With regard to the domestic like filed via ACCESS is also available in the Central industry producing the domestic like product, the petitioner does not offer a Records Unit, Room B8024 of the main Department product. In addition, the petitioner definition of the domestic like product of Commerce building. alleges that subject imports exceed the distinct from the scope of the 19 See Volume I of the Petition, at 3 and Exhibit negligibility threshold provided for investigation.17 Based on our analysis of I–3; see also General Issues Supplement, at 13–14 28 and Exhibit 15. under section 771(24)(A) of the Act. the information submitted on the 20 Id. at 3 and Exhibit I–3; see also General Issues The petitioner contends that the record, we have determined that quartz Supplement, at 13–14 and Exhibit 15; see also industry’s injured condition is surface products, as defined in the Industry Support Supplement, at 3 and Exhibit 1. illustrated by a significant and scope, constitute a single domestic like For further discussion, see Initiation Checklist, at increasing volume of subject imports; product, and we have analyzed industry Attachment II. reduced market share; underselling and 21 See M S International Standing Challenge. 22 See Second M S International Standing 24 15 See section 771(10) of the Act. Challenge. Id.; see also section 702(c)(4)(D) of the Act. 25 16 See USEC, Inc. v. United States, 132 F. Supp. 23 See Volume I of the Petition, at 3 and Exhibit See Initiation Checklist, at Attachment II. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. I–3; see also General Issues Supplement at 13–14 26 Id. v. United States, 688 F. Supp. 639, 644 (CIT 1988), and Exhibit 15; see also Industry Support 27 Id. aff’d 865 F.2d 240 (Fed. Cir. 1989)). Supplement at 3 and Exhibit 1. For further 28 See General Issues Supplement, at 14–15 and 17 See Volume I of the Petition, at 13. discussion, see Initiation Checklist at Attachment II. Exhibit 16.

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price depression or suppression; lost on U.S. Customs and Border Protection in the investigation being terminated.34 sales and lost revenues; negative effects (CBP) data for U.S. imports of quartz Otherwise, this investigation will on the existing product development surface products from China during the proceed according to statutory and and production efforts of the domestic POI under the appropriate Harmonized regulatory time limits. industry; and negative impact on the Tariff Schedule of the United States Submission of Factual Information domestic industry’s financial and number listed in the ‘‘Scope of the Factual information is defined in 19 operating indicators, such as sales, Investigation,’’ in the Appendix. CFR 351.102(b)(21) as: (i) Evidence profits, return on investment, cash flow, On May 1, 2018, Commerce released 29 CBP data under Administrative submitted in response to questionnaires; capacity utilization, and employment. (ii) evidence submitted in support of We have assessed the allegations and Protective Order (APO) to all parties with access to information protected by allegations; (iii) publicly available supporting evidence regarding material APO and indicated that interested information to value factors under 19 injury, threat of material injury, and parties wishing to comment regarding CFR 351.408(c) or to measure the causation, and we have determined that the CBP data and respondent selection adequacy of remuneration under 19 CFR these allegations are properly supported must do so within three business days 351.511(a)(2); (iv) evidence placed on by adequate evidence, and meet the of the publication date of the notice of the record by Commerce; and (v) 30 statutory requirements for initiation. initiation of this CVD investigation.32 evidence other than factual information described in (i)–(iv). When submitting Initiation of CVD Investigation Commerce will not accept rebuttal comments regarding the CBP data or factual information, 19 CFR 351.301(b) Based on the examination of the respondent selection. requires any party to specify under Petition, we find that the Petition meets Interested parties must submit which subsection of 19 CFR the requirements of section 702 of the applications for disclosure under APO 351.102(b)(21) the information is being 35 Act. Therefore, we are initiating a CVD in accordance with 19 CFR 351.305(b). submitted and, if the information is investigation to determine whether Instructions for filing such applications submitted to rebut, clarify, or correct factual information already on the imports of quartz surface products from may be found on Commerce’s website at record, to provide an explanation China benefit from countervailable http://enforcement.trade.gov/apo. identifying the information already on subsidies conferred by the GOC. In Comments must be filed electronically using ACCESS. An the record that the factual information accordance with section 703(b)(1) of the electronically filed document must be seeks to rebut, clarify, or correct.36 Time Act and 19 CFR 351.205(b)(1), unless received successfully, in its entirety, by limits for the submission of factual postponed, we will make our ACCESS no later than 5:00 p.m. ET on information are addressed in 19 CFR preliminary determination no later than the date noted above. We intend to 351.301, which provides specific time 65 days after the date of this initiation. finalize our decisions regarding limits based on the type of factual Based on our review of the Petition, respondent selection within 20 days of information being submitted. Interested we find that there is sufficient publication of this notice. parties should review the regulations information to initiate a CVD prior to submitting factual information Distribution of Copies of the Petition investigation on all but four of the in this investigation. In accordance with section alleged subsidy programs. For a full Extensions of Time Limits discussion of the basis for our decision 702(b)(4)(A)(i) of the Act and 19 CFR Parties may request an extension of to initiate on each program, see 351.202(f), copies of the public versions time limits before the expiration of a Initiation Checklist. A public version of of the Petition have been provided to time limit established under 19 CFR the initiation checklist for this the GOC via ACCESS. To the extent practicable, we will attempt to provide 351.301, or as otherwise specified by the investigation is available on ACCESS. a copy of the public version of the Secretary. In general, an extension Respondent Selection Petition to each exporter named in the request will be considered untimely if it Petition, as provided under 19 CFR is filed after the expiration of the time The petitioner named 301 351.203(c)(2). limit established under 19 CFR 351.301. companies 31 as producers/exporters of For submissions that are due from quartz surface products in China. ITC Notification multiple parties simultaneously, an Commerce intends to follow its standard We will notify the ITC of our extension request will be considered practice in CVD investigations and initiation, as required by section 702(d) untimely if it is filed after 10:00 a.m. ET calculate company-specific subsidy of the Act. on the due date. Under certain circumstances, we may elect to specify rates in this investigation. In the event Preliminary Determinations by the ITC Commerce determines that the number a different time limit by which of companies is large and it cannot The ITC will preliminarily determine, extension requests will be considered within 45 days after the date on which individually examine each company untimely for submissions which are due the Petition was filed, whether there is based upon Commerce’s resources, from multiple parties simultaneously. In a reasonable indication that imports of such a case, we will inform parties in where appropriate, Commerce intends quartz surface products from China are to select mandatory respondents based the letter or memorandum setting forth materially injuring, or threatening the deadline (including a specified time) material injury to, a U.S. industry.33 A by which extension requests must be 29 See Volume I of the Petition, at 10–30 and negative ITC determination will result Exhibits I–3 and I–9 through I–19; see also General filed to be considered timely. An Issues Supplement, at 14–15 and Exhibits 16 extension request must be made in a 31 through 18. See Volume I of the Petition, at Exhibit I–8. separate, stand-alone submission; under 32 See Memorandum, ‘‘Certain Quartz Surface 30 See Initiation Checklist at Attachment III, limited circumstances we will grant Products from the People’s Republic of China Analysis of Allegations and Evidence of Material Countervailing Duty Petition: Release of Customs Injury and Causation for the Antidumping and Data from U.S. Customs and Border Protection,’’ 34 See section 703(a)(1) of the Act. Countervailing Duty Petitions Covering Certain dated May 1, 2018. 35 See 19 CFR 351.301(b). Quartz Surface Products from the People’s Republic 33 See section 703(a)(2) of the Act. 36 See 19 CFR 351.301(b)(2). of China.

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untimely-filed requests for the extension incorporation of other materials, including, DEPARTMENT OF COMMERCE of time limits. Parties should review but not limited to, pigments, cement, or other Extension of Time Limits; Final Rule, 78 additives does not remove the merchandise National Oceanic and Atmospheric FR 57790 (September 20, 2013), from the scope of the investigation. However, Administration the scope of the investigation only includes available at http://www.gpo.gov/fdsys/ RIN 0648–XG244 pkg/FR-2013-09-20/html/2013- products where the silica content is greater than any other single material, by actual 22853.htm, prior to submitting factual weight. Quartz surface products are typically Pacific Fishery Management Council; information in this investigation. sold as rectangular slabs with a total surface Public Meeting area of approximately 45 to 60 square feet Certification Requirements AGENCY: National Marine Fisheries and a nominal thickness of one, two, or three Service (NMFS), National Oceanic and Any party submitting factual centimeters. However, the scope of this information in an AD or CVD investigation includes surface products of all Atmospheric Administration (NOAA), proceeding must certify to the accuracy other sizes, thicknesses, and shapes. In Commerce. and completeness of that information.37 addition to slabs, the scope of this ACTION: Notice; public meeting. Parties must use the certification investigation includes, but is not limited to, formats provided in 19 CFR other surfaces such as countertops, SUMMARY: The Pacific Fishery 351.303(g).38 Commerce intends to backsplashes, vanity tops, bar tops, work Management Council’s (Pacific Council) reject factual submissions if the tops, tabletops, flooring, wall facing, shower Groundfish Management Team (GMT) submitting party does not comply with surrounds, fire place surrounds, mantels, and will hold a webinar that is open to the the applicable certification tiles. Certain quartz surface products are public. requirements. covered by the investigation whether DATES: The GMT webinar will be held polished or unpolished, cut or uncut, Wednesday, May 30, 2018, from 1:30 Notification to Interested Parties fabricated or not fabricated, cured or p.m. until 4:30 p.m. The GMT webinar Interested parties must submit uncured, edged or not edged, finished or end time is an estimate, the meeting will applications for disclosure under APO unfinished, thermoformed or not adjourn when business for the day is thermoformed, packaged or unpackaged, and in accordance with 19 CFR 351.305. On regardless of the type of surface finish. completed. January 22, 2008, Commerce published In addition, quartz surface products are ADDRESSES: To attend the webinar (1) Antidumping and Countervailing Duty covered by the investigation whether or not join the meeting by visiting this link Proceedings: Documents Submission they are imported attached to, or in http://www.gotomeeting.com/; (2) enter Procedures; APO Procedures, 73 FR conjunction with, non-subject merchandise the Webinar ID: 798–578–157, and (3) 3634 (January 22, 2008). Parties wishing such as sinks, sink bowls, vanities, cabinets, enter your name and email address to participate in this investigation and furniture. If quartz surface products are (required). After logging in to the should ensure that they meet the imported attached to, or in conjunction with, webinar, please (1) dial this TOLL such non-subject merchandise, only the requirements of these procedures (e.g., number +1 (669) 224–3412 (not a toll- the filing of letters of appearance as quartz surface product is covered by the scope. free number); (2) enter the attendee discussed at 19 CFR 351.103(d)). phone audio access code 798–578–157; This notice is issued and published Subject merchandise includes material matching the above description that has been and (3) then enter your audio phone pin pursuant to sections 702 and 777(i) of (shown after joining the webinar). the Act and 19 CFR 351.203(c). finished, packaged, or otherwise fabricated in a third country, including by cutting, NOTE: We have disabled Mic/Speakers Dated: May 7, 2018. polishing, curing, edging, thermoforming, as on option and require all participants Gary Taverman, attaching to, or packaging with another to use a telephone or cell phone to Deputy Assistant Secretary for Antidumping product, or any other finishing, packaging, or participate. Technical Information and and Countervailing Duty Operations, fabrication that would not otherwise remove System Requirements: PC-based performing the non-exclusive functions and the merchandise from the scope of the attendees are required to use Windows® duties of the Assistant Secretary for investigation if performed in the country of 7, Vista, or XP; Mac®-based attendees Enforcement and Compliance. manufacture of the quartz surface products. are required to use Mac OS® X 10.5 or The scope of the investigation does not Appendix I newer; Mobile attendees are required to cover quarried stone surface products, such ® ® TM as granite, marble, soapstone, or quartzite. use iPhone , iPad , Android phone Scope of the Investigation Specifically excluded from the scope of the or Android tablet (See the https:// The merchandise covered by the investigation are crushed glass surface www.gotomeeting.com/meeting/ipad- investigation is certain quartz surface products. Crushed glass surface products are iphone-android-apps). You may send an products.39 Quartz surface products consist surface products in which the crushed glass email to Mr. Kris Kleinschmidt at of slabs and other surfaces created from a content is greater than any other single [email protected] or contact mixture of materials that includes material, by actual weight. him at (503) 820–2280, extension 411 predominately silica (e.g., quartz, quartz The products subject to the scope are for technical assistance. A public powder, cristobalite) as well as a resin binder currently classified in the Harmonized Tariff listening station will also be available at (e.g., an unsaturated polyester). The Schedule of the United States (HTSUS) under the Pacific Council office. the following subheading: 6810.99.0010. Council address: Pacific Council, 37 See section 782(b) of the Act. Subject merchandise may also enter under 7700 NE Ambassador Place, Suite 101, 38 See Certification of Factual Information to subheadings 6810.11.0010, 6810.11.0070, Import Administration During Antidumping and 6810.19.1200, 6810.19.1400, 6810.19.5000, Portland, OR 97220–1384; telephone: Countervailing Duty Proceedings, 78 FR 42678 (July 6810.91.0000, 6810.99.0080, 6815.99.4070, (503) 820–2280. 17, 2013) (Final Rule); see also frequently asked FOR FURTHER INFORMATION CONTACT: Mr. questions regarding the Final Rule, available at 2506.10.0010, 2506.10.0050, 2506.20.0010, http://enforcement.trade.gov/tlei/notices/factual_ 2506.20.0080. The HTSUS subheadings set John DeVore, Pacific Council; info_final_rule_FAQ_07172013.pdf. forth above are provided for convenience and telephone: (503) 820–2413. 39 Quartz surface products may also generally be U.S. Customs purposes only. The written SUPPLEMENTARY INFORMATION: The referred to as engineered stone or quartz, artificial description of the scope is dispositive. stone or quartz, agglomerated stone or quartz, primary purpose of the GMT webinar is synthetic stone or quartz, processed stone or quartz, [FR Doc. 2018–10532 Filed 5–15–18; 8:45 am] to prepare for the June 2018 Pacific manufactured stone or quartz, and Bretonstone®. BILLING CODE 3510–DS–P Council meeting. A detailed agenda for

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the webinar will be available on the Management Leadership Call. See appointed by the Gulf of Mexico, South Pacific Council’s website prior to the SUPPLEMENTARY INFORMATION. Atlantic, and Caribbean Fishery meeting. The GMT may also address DATES: The SEDAR 58 Cobia Stock ID Management Councils and NOAA other assignments relating to groundfish Review Workshop will be held on June Fisheries Southeast Regional Office, management. No management actions 5, 2018, from 1:30 p.m. to 6 p.m.; June Highly Migratory Species Management will be decided by the GMT. The GMT’s 6, 2018, from 9 a.m. until 6 p.m.; and Division, and Southeast Fisheries task will be to develop June 7, 2018, from 9 a.m. until 1 p.m. Science Center. Participants include: recommendations for consideration by The established times may be adjusted Data collectors and database managers; the Pacific Council at its June 2018 as necessary to accommodate the timely stock assessment scientists, biologists, meeting. completion of discussion relevant to the and researchers; constituency Although nonemergency issues not assessment process. Such adjustments representatives including fishermen, contained in the meeting agenda may be may result in the meeting being environmentalists, and non- discussed, those issues may not be the extended from, or completed prior to governmental organizations (NGOs); subject of formal action during these the time established by this notice. international experts; and staff of meetings. Action will be restricted to ADDRESSES: Councils, Commissions, and state and those issues specifically listed in this Meeting address: The SEDAR 58 document and any issues arising after Cobia Stock ID Review Workshop will federal agencies. publication of this document that be held at the Crowne Plaza Charleston The items of discussion at the Cobia require emergency action under section Airport, 4831 Tanger Outlet Boulevard, Stock ID Review Workshop are as 305(c) of the Magnuson-Stevens Fishery North Charleston, SC 29418; telephone: follows: Conservation and Management Act, (843) 744–4422. 1. Review the recommendations of the SEDAR address: South Atlantic provided the public has been notified of SEDAR 58 Cobia Stock ID Workshop. the intent to take final action to address Fishery Management Council, 4055 the emergency. Faber Place Drive, Suite 201, N 2. Determine whether the stock Charleston, SC 29405; structure recommended by the SEDAR Special Accommodations www.sedarweb.org. Stock ID Workshop is reasonable and The public listening station is FOR FURTHER INFORMATION CONTACT: Julia appropriate to use for the SEDAR 58 physically accessible to people with Byrd, SEDAR Coordinator, 4055 Faber assessment unit stock. disabilities. Requests for sign language Place Drive, Suite 201, North 3. Prepare a report documenting the interpretation or other auxiliary aids Charleston, SC 29405; phone (843) 571– Review Panel’s findings and should be directed to Mr. Kris 4366; email: [email protected]. recommendations regarding the SEDAR Kleinschmidt at (503) 820–2411 at least SUPPLEMENTARY INFORMATION: The Gulf 58 assessment unit stock. 10 business days prior to the meeting of Mexico, South Atlantic, and date. Although non-emergency issues not Caribbean Fishery Management contained in this agenda may come Dated: May 11, 2018. Councils, in conjunction with NOAA before this group for discussion, those Fisheries and the Atlantic and Gulf Tracey L. Thompson, issues may not be the subject of formal States Marine Fisheries Commissions, Acting Deputy Director, Office of Sustainable action during this meeting. Action will Fisheries, National Marine Fisheries Service. have implemented the Southeast Data, Assessment and Review (SEDAR) be restricted to those issues specifically [FR Doc. 2018–10450 Filed 5–15–18; 8:45 am] identified in this notice and any issues BILLING CODE 3510–22–P process, a multi-step method for determining the status of fish stocks in arising after publication of this notice the Southeast Region. SEDAR is a three- that require emergency action under DEPARTMENT OF COMMERCE step process including: (1) Data section 305(c) of the Magnuson-Stevens Workshop; (2) Assessment Process Fishery Conservation and Management National Oceanic and Atmospheric utilizing a workshop and/or webinars; Act, provided the public has been Administration and (3) Review Workshop. Cobia Stock notified of the intent to take final action ID will be resolved prior to the start of to address the emergency. RIN 0648–XG189 the SEDAR 58 Data Workshop using the Special Accommodations Fisheries of the South Atlantic; multi-step Stock ID Process. The Southeast Data, Assessment, and product of the Data Workshop is a data This meeting is accessible to people Review (SEDAR); Stock ID Review report which compiles and evaluates with disabilities. Requests for auxiliary Workshop for Cobia (Rachycentron potential datasets and recommends aids should be directed to the SAFMC canadum) which datasets are appropriate for office (see ADDRESSES) at least 10 assessment analyses. The product of the business days prior to the meeting. AGENCY: National Marine Fisheries Assessment Process is a stock Service (NMFS), National Oceanic and assessment report which describes the Note: The times and sequence specified in Atmospheric Administration (NOAA), fisheries, evaluates the status of the this agenda are subject to change. Commerce. stock, estimates biological benchmarks, Authority: 16 U.S.C. 1801 et seq. ACTION: Notice of SEDAR 58 Stock projects future population conditions, Identification (ID) Review Workshop for and recommends research and Dated: May 11, 2018. Cobia. monitoring needs. The assessment is Tracey L. Thompson, independently peer reviewed at the Acting Deputy Director, Office of Sustainable SUMMARY: The SEDAR 58 Cobia Stock ID Review Workshop. The product of the Fisheries, National Marine Fisheries Service. Process will be a multi-step process Review Workshop is a Summary [FR Doc. 2018–10448 Filed 5–15–18; 8:45 am] consisting of a series of workshops and documenting panel opinions regarding BILLING CODE 3510–22–P webinars: Stock ID Workshop; Stock ID the strengths and weaknesses of the Review Workshop; Joint Cooperator stock assessment and input data. Technical Review; and Science and Participants for SEDAR Workshops are

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DEPARTMENT OF COMMERCE Dated: May 11, 2018. https://www.fisheries.noaa.gov/node/ Tracey L. Thompson, 23111 without change. All personal National Oceanic and Atmospheric Acting Deputy Director, Office of Sustainable identifying information (e.g., name, Administration Fisheries, National Marine Fisheries Service. address) voluntarily submitted by the [FR Doc. 2018–10449 Filed 5–15–18; 8:45 am] commenter may be publicly accessible. RIN 0648–XG207 BILLING CODE 3510–22–P Do not submit confidential business information or otherwise sensitive or North Pacific Fishery Management protected information. Council; Public Meeting DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: Jaclyn Daly, Office of Protected AGENCY: National Marine Fisheries National Oceanic and Atmospheric Resources, NMFS, (301) 427–8401. Service (NMFS), National Oceanic and Administration Atmospheric Administration (NOAA), Electronic copies of the application and RIN 0648–XG204 Commerce. supporting documents, as well as a list of the references cited in this document, ACTION: Notice of public meeting. Takes of Marine Mammals Incidental to may be obtained online at: https:// Specified Activities; Taking Marine www.fisheries.noaa.gov/node/23111. In SUMMARY: The North Pacific Fishery Mammals Incidental to the Annapolis case of problems accessing these Management Council’s (Council) Passenger Ferry Dock Project, Puget documents, please call the contact listed Legislative Committee will meet on June Sound, Washington above. 5, 2018 in Kodiak, AK. AGENCY: National Marine Fisheries SUPPLEMENTARY INFORMATION: DATES: The meeting will be held on Service (NMFS), National Oceanic and Background Tuesday, June 5, 2018, from 8 a.m. to 12 Atmospheric Administration (NOAA), p.m. Commerce. Sections 101(a)(5)(A) and (D) of the ADDRESSES: The meeting will be held in ACTION: Notice; proposed incidental MMPA (16 U.S.C. 1361 et seq.) direct the Katurwik Room at the Kodiak harassment authorization; request for the Secretary of Commerce (as delegated Harbor Convention Center, 236 Rezanof comments. to NMFS) to allow, upon request, the Drive, Kodiak, AK 99615. incidental, but not intentional, taking of Council address: North Pacific SUMMARY: NMFS has received a request small numbers of marine mammals by Fishery Management Council, 605 W from Kitsap Transit for authorization to U.S. citizens who engage in a specified 4th Ave., Suite 306, Anchorage, AK take marine mammals incidental to the activity (other than commercial fishing) 99501–2252; telephone: (907) 271–2809. Annapolis Passenger Ferry Dock Project within a specified geographical region if in Puget Sound, Washington. Pursuant FOR FURTHER INFORMATION CONTACT: certain findings are made and either to the Marine Mammal Protection Act David Witherell, Council staff; regulations are issued or, if the taking is (MMPA), NMFS is requesting comments telephone: (907) 271–2809. limited to harassment, a notice of a on its proposal to issue an incidental proposed authorization is provided to SUPPLEMENTARY INFORMATION: harassment authorization (IHA) to the public for review. Agenda incidentally take marine mammals An authorization for incidental during the specified activities. NMFS takings shall be granted if NMFS finds Tuesday, June 5, 2018 will consider public comments prior to that the taking will have a negligible The meeting agenda includes: (a) making any final decision on the impact on the species or stock(s), will Update on MSA legislation and related issuance of the requested MMPA not have an unmitigable adverse impact bills, including CCC comments, (b) authorizations and agency responses on the availability of the species or public comment, and (c) will be summarized in the final notice stock(s) for subsistence uses (where recommendations to the Council. The of our decision. relevant), and if the permissible Agenda is subject to change, and the DATES: Comments and information must methods of taking and requirements latest version will be posted at http:// be received no later than June 15, 2018. pertaining to the mitigation, monitoring www.npfmc.org/. ADDRESSES: Comments should be and reporting of such takings are set addressed to Jolie Harrison, Chief, forth. Public Comment Permits and Conservation Division, NMFS has defined ‘‘negligible Public comment letters will be Office of Protected Resources, National impact’’ in 50 CFR 216.103 as an impact accepted and should be submitted either Marine Fisheries Service. Physical resulting from the specified activity that electronically to David Witherell, comments should be sent to 1315 East- cannot be reasonably expected to, and is Council staff: [email protected], West Highway, Silver Spring, MD 20910 not reasonably likely to, adversely affect or through the mail: North Pacific and electronic comments should be sent the species or stock through effects on Fishery Management Council, 605 W to [email protected]. annual rates of recruitment or survival. 4th Ave., Suite 306, Anchorage, AK Instructions: NMFS is not responsible The MMPA states that the term ‘‘take’’ 99501–2252. In-person oral public for comments sent by any other method, means to harass, hunt, capture, kill or testimony will be accepted at the to any other address or individual, or attempt to harass, hunt, capture, or kill scheduled place on the agenda. received after the end of the comment any marine mammal. period. Comments received Except with respect to certain Special Accommodations electronically, including all activities not pertinent here, the MMPA The meeting is physically accessible attachments, must not exceed a 25- defines ‘‘harassment’’ as: any act of to people with disabilities. Requests for megabyte file size. Attachments to pursuit, torment, or annoyance which (i) sign language interpretation or other electronic comments will be accepted in has the potential to injure a marine auxiliary aids should be directed to Microsoft Word or Excel or Adobe PDF mammal or marine mammal stock in the Shannon Gleason at (907) 271–2809 at file formats only. All comments wild (Level A harassment); or (ii) has least 7 working days prior to the received are a part of the public record the potential to disturb a marine meeting date. and will generally be posted online at mammal or marine mammal stock in the

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wild by causing disruption of behavioral vomerina) by Level B harassment only. outcrops. The terminal itself and patterns, including, but not limited to, Neither Kitsap Transit nor NMFS parking area contains a hardened migration, breathing, nursing, breeding, expects serious injury or mortality to shoreline comprised of sheet piles. feeding, or sheltering (Level B result from this activity and, therefore, Detailed Description of Specific Activity harassment). an IHA is appropriate. The Annapolis Ferry Terminal is 34 National Environmental Policy Act Description of Proposed Activity years old with a useful life of 40 years. To comply with the National Overview Kitsap Transit has determined upgrades Environmental Policy Act of 1969 Kitsap Transit is proposing to upgrade are necessary to meet ADA requirements (NEPA; 42 U.S.C. 4321 et seq.) and and accommodate larger ferry vessels. NOAA Administrative Order (NAO) the existing dock at its Annapolis Ferry Terminal to accommodate larger vessels These improvements are designed to 216–6A, NMFS must review our improve the ferry operation, proposed action (i.e., the issuance of an by extending the dock into deeper water and bring the terminal into compliance environmental conditions, overall incidental harassment authorization) experience for all passengers and with respect to potential impacts on the with American Disability Act (ADA) accessibility standards. The project provide equal access for elderly and human environment. disabled passengers. To make the This action is consistent with includes removing 10 existing concrete and steel piles that support the existing upgrades, Kitsap Transit is removing a categories of activities identified in portion of the existing pier, installing a Categorical Exclusion B4 (incidental pier and float and installing 12 new longer gangway, removing the existing harassment authorizations with no steel piles to support updated float and installing a larger float in anticipated serious injury or mortality) structures. Piles may be removed using deeper water. This work requires of the Companion Manual for NOAA a vibratory hammer and new piles may removing existing decking with a Administrative Order 216–6A, which do be installed using a vibratory and, if concrete saw, removing 10 existing not individually or cumulatively have necessary, an impact hammer. The piles, and installing 12 new piles. The the potential for significant impacts on project is anticipated to take 8 weeks to concrete saw would not cause in-air the quality of the human environment complete and could start as early as July harassment as no pinnipeds haulout in and for which we have not identified 2, 2018; however, Kitsap Transit the immediate vicinity of the dock; any extraordinary circumstances that anticipates it will take a maximum of 17 therefore, this activity is not discussed would preclude this categorical days to completed pile-related work. further. exclusion. Accordingly, NMFS has Dates and Duration preliminarily determined that the Piles would be removed with a issuance of the proposed IHA qualifies The project would occur for eight vibratory hammer. Piles would be to be categorically excluded from weeks between July 1, 2018 and March installed using a vibratory hammer to further NEPA review. 2, 2019. Pile removal has been refusal and then ‘‘proofed’’ with an We will review all comments conservatively estimated to occur at a impact hammer, if necessary. During submitted in response to this notice rate of 2 piles removed per day, which impact hammering, Kitsap Transit prior to concluding our NEPA process would require 5 days to remove 10 would use a bubble curtain to reduce or making a final decision on the IHA piles. Pile installation was underwater sound pressure levels. The request. conservatively estimated to occur at a exact type and design of bubble curtain rate of 1 pile per day, which would is not known. Summary of Request require 12 days to install 12 piles. In Kitsap Transit estimates up to four On March 5, 2018, NMFS received a total, there would be 17 days piles could be removed per day and up request from Kitsap Transit for an IHA (maximum) of pile driving. to two piles would be installed per day. to take marine mammals incidental to However, to account for unexpected pile driving and removal associated Specific Geographic Region issues, Kitsap Transit recognizes only with upgrades to the Annapolis Ferry The Annapolis Ferry Terminal is two piles may be removed and one pile Terminal, Puget Sound, Washington. located in Sinclair Inlet across from may be installed per day. Pile removal Kitsap Transit submitted a revised Navy Base Kitsap (NBK) Bremerton and and installation would not occur on the application on May 3, 2018 which southwest of Bainbridge Island. same day. Therefore, the maximum NMFS deemed adequate and complete. Potential areas ensonfied during pile amount of time spent removing 10 piles Kitsap Transit’s request is for take of driving include Sinclair Inlet and would be 5 days while the maximum harbor seal (Phoca vitulina richardii), portions of Port Washington Narrows, amount of time installing 12 piles Steller sea lion (Eumetopias jubatus Port Orchard Passage and Rich Passage. would be 12 days for a total of 17 days. monteriensis), California sea lion These waterbodies range up to 130 feet The types of piles included in the (Zalophus californianu), and harbor in depth and substrates include silt/ project and schedule, are included in porpoise (Phocoena phocoena mud, sand, gravel, cobbles and rock Table 1.

TABLE 1—DESCRIPTION OF PILES TO BE INSTALLED AND REMOVED DURING THE ANNAPOLIS FERRY DOCK PROJECT

Number of Pile size Method Number of days piles (maximum)

Pile Removal

16.5-in concrete ...... Vibratory ...... 4 5 18-in steel ...... Vibratory ...... 6

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TABLE 1—DESCRIPTION OF PILES TO BE INSTALLED AND REMOVED DURING THE ANNAPOLIS FERRY DOCK PROJECT— Continued

Number of Pile size Method Number of days piles (maximum)

Pile Installation

12-in steel ...... Vibratory ...... 4 12 Impact. 24-in steel ...... Vibratory ...... 8 Impact.

Proposed mitigation, monitoring, and follow Committee on Taxonomy (2016). the potential to co-occur with Kitsap reporting measures are described in PBR is defined by the MMPA as the Transit’s proposed project. While there detail later in this document (please see maximum number of animals, not are several other species or stocks that ‘‘Proposed Mitigation’’ and ‘‘Proposed including natural mortalities, that may occur in Washington inland waters, Monitoring and Reporting’’). be removed from a marine mammal many are not expected to occur in the stock while allowing that stock to reach Description of Marine Mammals in the vicinity of the Annapolis Ferry or maintain its optimum sustainable Area of Specified Activities Terminal due to its position within the population (as described in NMFS’s Puget Sound. These species, such as Sections 3 and 4 of the application SARs). While no mortality is anticipated Dall’s porpoise (Phocoenoides dalli summarize available information or authorized here, PBR and annual dalli) and Northern elephant seals regarding status and trends, distribution serious injury and mortality from (Mirounga angustirostris) occur in more and habitat preferences, and behavior anthropogenic sources are included here northerly waters of Puget Sound and in and life history, of the potentially as gross indicators of the status of the the vicinity of the San Juan Islands but affected species. Additional information species and other threats. have not been observed within the regarding population trends and threats Marine mammal abundance estimates project area. Therefore, they are not may be found in NMFS’s Stock presented in this document represent discussed further. The sea otter Assessment Reports (SAR; the total number of individuals that (Enhydra lutris kenyoni) is also found in www.nmfs.noaa.gov/pr/sars/) and more make up a given stock or the total Puget Sound; however, sea otters are general information about these species number estimated within a particular managed by the U.S. Fish and Wildlife (e.g., physical and behavioral study or survey area. NMFS’s stock Service and are not considered further descriptions) may be found on NMFS’s abundance estimates for most species in this document. website (https:// represent the total estimate of www.fisheries.noaa.gov/find-species). individuals within the geographic area, All values presented in Table 2 are Table 2 lists all species with expected if known, that comprises that stock. All the most recent available at the time of potential for occurrence in Puget Sound managed stocks in the specified writing and are available in the draft and summarizes information related to geographical regions are assessed in 2017 SARs (available online at: the population or stock, including either NMFS’s U.S. Alaska SARs or U.S. www.fisheries.noaa.gov/national/ regulatory status under the MMPA and Pacific SARs. marine-mammal-protection/draft- ESA and potential biological removal Seven species (comprising eight marine-mammal-stock-assessment- (PBR), where known. For taxonomy, we managed stocks) are considered to have reports). TABLE 2—MARINE MAMMAL POTENTIALLY PRESENT IN THE VICINITY OF THE ANNAPOLIS FERRY TERMINAL DURING CONSTRUCTION

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

Order Cetartiodactyla—Cetacea—Superfamily Mysticeti (baleen whales)

Family Eschrichtiidae: Gray whale ...... Eschrichtius robustus ...... Eastern North Pacific ...... -; N 20,990 (0.05; 20,125; 624 132 2011). Family Balaenopteridae (rorquals): Humpback whale ...... Megaptera novaeangliae kuzira California/Oregon/Washington E/D; Y 1,918 (0.03; 1,876; 2014) 7 11 ≥9.2 (CA/OR/WA).

Superfamily Odontoceti (toothed whales, dolphins, and porpoises)

Family Delphinidae: Killer whale ...... Orcinus orca 4 ...... West Coast Transient 5 ...... -; N 243 (n/a; 2009) ...... 2.4 0 Eastern North Pacific Southern E/D; Y 83 (n/a; 2016) ...... 0.14 0 Resident. Family Phocoenidae (por- poises):

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TABLE 2—MARINE MAMMAL POTENTIALLY PRESENT IN THE VICINITY OF THE ANNAPOLIS FERRY TERMINAL DURING CONSTRUCTION—Continued

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

Harbor porpoise ...... Phocoena phocoena vomerina Washington Inland Waters ...... -; N 11,233 (0.37; 8,308; 66 ≥7.2 2015).

Order Carnivora—Superfamily Pinnipedia

Family Otariidae (eared seals and sea lions): California sea lion ...... Zalophus californianus ...... United States ...... -; N 296,750 (n/a; 153,337; 9,200 389 2011). Steller sea lion ...... Eumetopias jubatus Eastern U.S...... D; Y 41,638 (n/a; 2015) ...... 2,498 108 monteriensis. Family Phocidae (earless seals): Harbor seal ...... Phoca vitulina richardii ...... Southern Puget Sound 6 ...... -; N 1,568 (0.15; 1,025; 1999) Undet. 3.4 1 Endangered Species Act (ESA) status: Endangered (E), Threatened (T)/MMPA status: Depleted (D). A dash (-) indicates that the species is not listed under the ESA or designated as 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 designated under the MMPA as depleted and as a strategic stock. 2 NMFS marine mammal stock assessment reports at: www.fisheries.noaa.gov/national/marine-mammal-protection/marine-mammal-stock-assessments. CV is coeffi- cient of variation; Nmin is the minimum estimate of stock abundance. In some cases, CV is not applicable. For two stocks of killer whales, the abundance values rep- resent direct counts of individually identifiable animals; therefore there is only a single abundance estimate with no associated CV. For certain stocks of pinnipeds, abundance estimates are based upon observations of animals (often pups) ashore multiplied by some correction factor derived from knowledge of the species’ (or similar species’) life history to arrive at a best abundance estimate; therefore, there is no associated CV. In these cases, the minimum abundance may represent ac- tual counts of all animals ashore. 3 These values, found in NMFS’ SARs, represent annual levels of human-caused mortality plus serious injury from all sources combined (e.g., commercial fisheries, 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 draft 2017 SARs. 4 Transient and resident killer whales are considered unnamed subspecies (Committee on Taxonomy, 2017). 5 The abundance estimate for this stock includes only animals from the ‘‘inner coast’’ population occurring in inside waters of southeastern Alaska, British Columbia, and Washington—excluding animals from the ‘‘outer coast’’ subpopulation, including animals from California—and therefore should be considered a minimum count. For comparison, the previous abundance estimate for this stock, including counts of animals from California that are now considered outdated, was 354. 6 Abundance estimates for the Southern Puget Sound harbor seal stock is not considered current. PBR is therefore considered undetermined for these stocks, as there is no current minimum abundance estimate for use in calculation. We nevertheless present the most recent abundance estimates, as these represent the best available information for use in this document. 7 This stock is known to spend a portion of time outside the U.S. EEZ. Therefore, the PBR presented here is the allocation for U.S. waters only and is a portion of the total. The total PBR for humpback whales is 22 (one half allocation for U.S. waters). Annual M/SI presented for these species is for U.S. waters only.

All species that could potentially identified with the regularly occurring stocks designated under the MMPA and occur in the proposed project area are feeding group are occasionally sighted shown in Table 2. Because MMPA included in Table 2. As described in Puget Sound. These whales are not stocks cannot be portioned, i.e., parts below, all seven species could associated with feeding areas and are managed as ESA-listed while other parts temporally and spatially co-occur with often emaciated (WDFW, 2012). There managed as not ESA-listed, until such the activity; however, Kitsap Transit has are typically from 2 to 10 stranded gray time as the MMPA stock delineations proposed mitigation measures which whales per year in Washington are reviewed in light of the DPS eliminate the potential take of three of (Cascadia Research, 2012). designations, NMFS considers the these species (gray whales, humpback In Sinclair Inlet and the surrounding existing humpback whale stocks under whales, and killer whales). Therefore, waterways (Rich Passage, Dyes Inlet, the MMPA to be endangered and Kitsap Transit has requested, and we are and Agate Passage), 11 opportunistic depleted for MMPA management proposing to authorize, take of four sightings of gray whales were reported purposes (e.g., selection of a recovery marine mammal species: harbor seal, to the Orca Network (a public marine factor, stock status). California sea lion, Steller sea lion, and mammal sightings database) between Within U.S. west coast waters, three harbor porpoise. 2003 and 2012. One stranding occurred current DPSs may occur: The Hawaii at NBK Bremerton in 2013. Gray whales DPS (not listed), Mexico DPS Gray Whale have been sighted in Hood Canal south (threatened), and Central America DPS Gray whales are observed in of the Hood Canal Bridge on six (endangered). According to Wade et al. Washington inland waters in all months occasions since 1999, including a (2016), the probability that whales of the year, with peak numbers from stranded whale. The most recent report encountered in Washington waters are March through June (Calambokidis et was in 2010. from a given DPS are as follows: Hawaii, al., 2010). Most whales sighted are part 52.9 percent (CV = 0.15); Mexico, 41.9 of a small regularly occurring group of Humpback Whale percent (0.14); Central America, 5.2 6 to 10 whales that use mudflats in the Prior to 2016, humpback whales were percent (0.91). Whidbey Island and Camano Island area listed under the ESA as an endangered Most humpback whale sightings as a springtime feeding area species worldwide. Following a 2015 reported since 2003 were in the main (Calambokidis et al., 2010). Observed global status review (Bettridge et al., basin of Puget Sound with numerous feeding areas are located in Saratoga 2015), NMFS established 14 distinct sightings in the waters between Point Passage between Whidbey and Camano population segments (DPS) with No Point and Whidbey Island, Islands including Crescent Harbor, and different listing statuses (81 FR 62259; Possession Sound, and southern Puget in Port Susan Bay located between September 8, 2016) pursuant to the ESA. Sound in the vicinity of Point Defiance. Camano Island and the mainland north The DPSs that occur in U.S. waters do A few sightings of possible humpback of Everett. Gray whales that are not not necessarily equate to the existing whales were reported by Orca Network

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in the waters near Navy Base Kitsap 2010, with as many as 315 individuals and development; (2) Prey species of (NBK) Bremerton (located across hauled out at one time (November 2015) sufficient quantity, quality, and Sinclair Inlet from the Annapolis Ferry on port security barrier floats. On availability to support individual Terminal) and Keyport (Rich Passage to average, 69 sea lions have been observed growth, reproduction, and development, Agate Passage area including Sinclair daily. as well as overall population growth; and Dyes Inlet) between 2003 and 2015. and (3) Passage conditions to allow for Stellar Sea Lion Humpback whales were also observed migration, resting, and foraging. in the vicinity of Manette Bridge in Steller sea lions are not frequently However, the six naval installations are Bremerton in 2016 and 2017, and a observed near the action area. Shore- specifically excluded from the critical carcass was found under a dock at NBK based surveys at NBK Bremerton habitat designation. A revision to the Bremerton in 2016 (Cascadia Research, (directly across Sinclar Inlet from the critical habitat designation is currently 2016). In Hood Canal, single humpback Annapolis Ferry Terminal) have not under consideration (80 FR 9682; whales were observed for several weeks detected Steller sea lions since the February 24, 2015). in 2012 and 2015. One sighting was surveys were initiated in 2010. Southern resident killer whales are reported in 2016. Review of the 2012 However, a single Steller sea lion was expected to occur occasionally in the sightings information indicated they sighted on the floating security barrier waters surrounding all of the were of one individual. Prior to the 2012 in 2012 and aerial surveys conducted by installations except those in Hood sightings, there were no confirmed the Washington Department of Fish and Canal, where they have not been reports of humpback whales entering Wildlife (WDFW) in 2013 noted Steller reported since 1995 (NMFS, 2006). Hood Canal. sea lion presence in the action area. Southern resident killer whales are rare WDFW identifies two Steller sea lion near NBK Bremerton and Keyport, with Harbor Seal haulouts near the Annapolis Ferry the last confirmed sighting in Dyes Inlet Harbor seals in Washington inland Terminal: (1) Navigation buoys and net in 1997. Southern residents have been waters have been divided into three pen floats in Clam Bay and (2) NBK observed in Saratoga Passage and stocks: Hood Canal, Northern Inland Bremerton port security barrier (Wiles, Possession Sound near NS Everett. Waters, and Southern Puget Sound. 2015). No pupping or breeding areas are The stock contains three pods (J, K, Animals belonging to the latter stock are present in the project area. and L pods), with pod sizes ranging ones most likely to occur in the action from approximately 20 (in J pod) to 40 area during pile driving. Harbor seals Killer Whale (Transient) (in L pod) individuals. Group sizes are the most common pinniped found in Groups of transient killer whales were encountered can be smaller or larger if the action area and are present year- observed for lengthy periods in Hood pods temporarily separate or join round. They haul out on rocks, reefs, Canal in 2003 (59 days) and 2005 (172 together. Therefore, some exposure to beaches, and drifting glacial ice and days) (London, 2006), but were not groups of up to 20 individuals or more feed in marine, estuarine, and observed again until 2016, when they could occur over the 5-year duration. occasionally fresh waters. Harbor seals were seen on a handful of days between Harbor Porpoise generally are non-migratory, with local March and May (including in Dabob movements associated with such factors Bay). Transient killer whales have been Harbor porpoises, once very common as tides, weather, season, food seen infrequently near NBK Bremerton, in Puget Sound, are recovering from a availability, and reproduction (as including in Dyes Inlet and Sinclair virtual disappearance in the 1970s reviewed in Carretta et al., 2014). Inlet (e.g., sightings in 2010, 2013, and (Jefferson et al., 2016). Recent Harbor seals have also displayed strong 2015). Sightings in the vicinity of NBK opportunistic sightings, strandings, and fidelity for haulout sites. Keyport have also been infrequent, and fisheries bycatches indicate that harbor There are no documented harbor seal no records were found for Rich Passage porpoises have reoccupied much or all haul-out within the immediate vicinity in the vicinity of NBK Manchester. of Puget Sound in significant numbers of the ferry terminal and much of the Transient killer whales have been since the 2002–2003. Jefferson et al. shoreline around the terminal has been observed in Possession Sound near NS (2016) conducted aerial surveys armored with sheet-piling, preventing Everett. throughout Puget Sound from 2013 to seals from hauling out. The nearest West Coast transient killer whales 2015 and developed harbor porpoise harbor seal haul-out is located in Dyes most often travel in small pods density estimates for eight stratums. Inlet with less than 100 estimated averaging four individuals (Baird and When pooling all seasons, the density of individuals, approximately nine Dill, 1996); however, the most harbor porpoise in southern Puget nautical miles from the site (Jefferies et commonly observed group size in Puget Sound for the entire year is 0.89 al., 2000). Sound (waters east of Admiralty Inlet, animals/km2 (see Table 3 in Jefferson et including Hood Canal, through South al., 2016). California Sea Lions Puget Sound and north to Skagit Bay) Marine Mammal Hearing California sea lions are typically from 2004 to 2010 was 6 whales present most of the year except for mid- (Houghton et al., 2015). Hearing is the most important sensory June through July in Washington inland modality for marine mammals waters, with peak abundance numbers Killer Whales (Resident) underwater, and exposure to between October and May (NMFS, 1997; Critical habitat for southern resident anthropogenic sound can have Jeffries et al., 2000). During summer killer whales, designated pursuant to deleterious effects. To appropriately months and associated breeding the ESA, includes three specific areas: assess the potential effects of exposure periods, the inland waters are not be (1) Summer core area in Haro Strait and to sound, it is necessary to understand considered a high-use area by California waters around the San Juan Islands; (2) the frequency ranges marine mammals sea lions, as they are returning to Puget Sound; and (3) Strait of Juan de are able to hear. Current data indicate rookeries in California waters. Fuca (71 FR 69054; November 29, 2006). that not all marine mammal species California sea lions have been The primary constituent elements have equal hearing capabilities (e.g., documented during shore- and boat- essential for conservation of the habitat Richardson et al., 1995; Wartzok and based surveys at NBK Bremerton since are: (1) Water quality to support growth Ketten, 1999; Au and Hastings, 2008).

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To reflect this, Southall et al. (2007) available information. Seven marine water. Amplitude is the height of the recommended that marine mammals be mammal species (four cetacean and sound pressure wave or the ‘‘loudness’’ divided into functional hearing groups three pinniped (two otariid and one of a sound and is typically described based on directly measured or estimated phocid) species) have the reasonable using the relative unit of the dB. A hearing ranges on the basis of available potential to co-occur with the proposed sound pressure level (SPL) in dB is behavioral response data, audiograms survey activities. Please refer to Table 2. described as the ratio between a derived using auditory evoked potential Of the cetacean species that may be measured pressure and a reference techniques, anatomical modeling, and present, two are classified as low- pressure (for underwater sound, this is other data. Note that no direct frequency cetaceans (i.e., all mysticete 1 microPascal (mPa)), and is a measurements of hearing ability have species), one is classified as mid- logarithmic unit that accounts for large been successfully completed for frequency cetaceans (i.e., all delphinid variations in amplitude; therefore, a mysticetes (i.e., low-frequency and ziphiid species and the sperm relatively small change in dB cetaceans). Subsequently, NMFS (2016) whale), and one is classified as high- corresponds to large changes in sound described generalized hearing ranges for frequency cetaceans (i.e., harbor pressure. The source level (SL) these marine mammal hearing groups. porpoise and Kogia spp.). represents the SPL referenced at a Generalized hearing ranges were chosen distance of 1 meter (m) from the source Potential Effects of Specified Activities based on the approximately 65 decibel (referenced to 1 mPa), while the received on Marine Mammals and Their Habitat (dB) threshold from the normalized level is the SPL at the listener’s position composite audiograms, with the This section includes a summary and (referenced to 1 mPa). exception for lower limits for low- discussion of the ways that components Root mean square (rms) is the frequency cetaceans where the lower of the specified activity may impact quadratic mean sound pressure over the bound was deemed to be biologically marine mammals and their habitat. The duration of an impulse. Root mean implausible and the lower bound from ‘‘Estimated Take by Incidental square is calculated by squaring all of Southall et al. (2007) retained. The Harassment’’ section later in this the sound amplitudes, averaging the functional groups and the associated document includes a quantitative squares, and then taking the square root frequencies are indicated below (note analysis of the number of individuals of the average (Urick, 1983). Root mean that these frequency ranges correspond that are expected to be taken by this square accounts for both positive and to the range for the composite group, activity. The ‘‘Negligible Impact negative values; squaring the pressures with the entire range not necessarily Analysis and Determination’’ section makes all values positive so that they reflecting the capabilities of every considers the content of this section, the may be accounted for in the summation species within that group): ‘‘Estimated Take by Incidental of pressure levels (Hastings and Popper, • Low-frequency cetaceans Harassment’’ section, and the ‘‘Proposed 2005). This measurement is often used (mysticetes): Generalized hearing is Mitigation’’ section, to draw in the context of discussing behavioral estimated to occur between conclusions regarding the likely impacts effects, in part because behavioral approximately 7 hertz (Hz) and 35 of these activities on the reproductive effects, which often result from auditory kilohertz (kHz); success or survivorship of individuals cues, may be better expressed through • Mid-frequency cetaceans (larger and how those impacts on individuals averaged units than by peak pressures. toothed whales, beaked whales, and are likely to impact marine mammal Sound exposure level (SEL; most delphinids): Generalized hearing is species or stocks. represented as dB re 1 mPa2-s) represents the total energy in a stated frequency estimated to occur between Description of Sound Sources approximately 150 Hz and 160 kHz; band over a stated time interval or • High-frequency cetaceans This section contains a brief technical event, and considers both intensity and (porpoises, river dolphins, and members background on sound, on the duration of exposure. The per-pulse SEL of the genera Kogia and characteristics of certain sound types, is calculated over the time window Cephalorhynchus; including two and on metrics used in this proposal containing the entire pulse (i.e., 100 members of the genus Lagenorhynchus, inasmuch as the information is relevant percent of the acoustic energy). SEL is on the basis of recent echolocation data to the specified activity and to a a cumulative metric; it can be and genetic data): Generalized hearing is discussion of the potential effects of the accumulated over a single pulse, or estimated to occur between specified activity on marine mammals calculated over periods containing approximately 275 Hz and 160 kHz. found later in this document. For multiple pulses. Cumulative SEL • Pinnipeds in water; Phocidae (true general information on sound and its represents the total energy accumulated seals): Generalized hearing is estimated interaction with the marine by a receiver over a defined time to occur between approximately 50 Hz environment, please see, e.g., Au and window or during an event. Peak sound to 86 kHz; Hastings (2008); Richardson et al. pressure (also referred to as zero-to-peak • Pinnipeds in water; Otariidae (eared (1995); Urick (1983). sound pressure or 0-pk) is the maximum seals): Generalized hearing is estimated Sound travels in waves, the basic instantaneous sound pressure to occur between 60 Hz and 39 kHz. components of which are frequency, measurable in the water at a specified The pinniped functional hearing wavelength, velocity, and amplitude. distance from the source, and is group was modified from Southall et al. Frequency is the number of pressure represented in the same units as the rms (2007) on the basis of data indicating waves that pass by a reference point per sound pressure. that phocid species have consistently unit of time and is measured in Hz or When underwater objects vibrate or demonstrated an extended frequency cycles per second. Wavelength is the activity occurs, sound-pressure waves range of hearing compared to otariids, distance between two peaks or are created. These waves alternately especially in the higher frequency range corresponding points of a sound wave compress and decompress the water as (Hemila¨ et al., 2006; Kastelein et al., (length of one cycle). Higher frequency the sound wave travels. Underwater 2009; Reichmuth et al., 2013). sounds have shorter wavelengths than sound waves radiate in a manner similar For more detail concerning these lower frequency sounds, and typically to ripples on the surface of a pond and groups and associated frequency ranges, attenuate (decrease) more rapidly, may be either directed in a beam or please see NMFS (2016) for a review of except in certain cases in shallower beams or may radiate in all directions

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(omnidirectional sources), as is the case sound levels can be expected to vary continuous or intermittent (ANSI, 1995). for sound produced by the pile driving widely over both coarse and fine spatial Some of these non-pulsed sounds can be activity considered here. The and temporal scales. Sound levels at a transient signals of short duration but compressions and decompressions given frequency and location can vary without the essential properties of associated with sound waves are by 10–20 dB from day to day pulses (e.g., rapid rise time). Examples detected as changes in pressure by (Richardson et al., 1995). The result is of non-pulsed sounds include those aquatic life and man-made sound that, depending on the source type and produced by vessels, aircraft, machinery receptors such as hydrophones. its intensity, sound from the specified operations such as drilling or dredging, Even in the absence of sound from the activity may be a negligible addition to vibratory pile driving, and active sonar specified activity, the underwater the local environment or could form a systems. The duration of such sounds, environment is typically loud due to distinctive signal that may affect marine as received at a distance, can be greatly ambient sound, which is defined as mammals. extended in a highly reverberant environmental background sound levels Underwater ambient sound in Puget environment. The impulsive sound lacking a single source or point Sound is comprised of sounds produced generated by impact hammers is (Richardson et al., 1995). The sound by a number of natural and characterized by rapid rise times and level of a region is defined by the total anthropogenic sources and varies both high peak levels. Vibratory hammers acoustical energy being generated by geographically and temporally. Human- produce non-impulsive, continuous known and unknown sources. These generated sound is a significant noise at levels lower than those sources may include physical (e.g., contributor to the ambient acoustic produced by impact hammers. Further, wind and waves, earthquakes, ice, environment at the installations rise time is not pronounced, reducing atmospheric sound), biological (e.g., considered here. The underwater the probability and severity of injury, sounds produced by marine mammals, acoustic environment at the Annapolis and sound energy is distributed over a fish, and invertebrates), and Ferry Terminal is dependent upon the greater amount of time (e.g., Nedwell anthropogenic (e.g., vessels, dredging, presence of ferries, other vessel traffic, and Edwards, 2002; Carlson et al., construction) sound. A number of and construction work occurring at 2005). sources contribute to ambient sound, nearby NBK Bremerton and the Manette including wind and waves, which are a Bridge. If ferries are approaching or Acoustic Effects main source of naturally occurring docking, ambient sound levels would be We previously provided general ambient sound for frequencies between higher than in absence of vessels. background information on marine 200 Hz and 50 kHz (Mitson, 1995). In Sounds are often considered to fall mammal hearing (see Description of general, ambient sound levels tend to into one of two general types: pulsed Marine Mammals in the Area of the increase with increasing wind speed and non-pulsed (defined in the Specified Activity). Here, we discuss the and wave height. Precipitation can following). The distinction between potential effects of sound on marine become an important component of total these two sound types is important mammals. sound at frequencies above 500 Hz, and because they have differing potential to Potential Effects of Underwater possibly down to 100 Hz during quiet cause physical effects, particularly with Sound—Note that, in the following times. Marine mammals can contribute regard to hearing (e.g., Ward, 1997 in discussion, we refer in many cases to a significantly to ambient sound levels, as Southall et al., 2007). Please see review article concerning studies of can some fish and snapping shrimp. The Southall et al. (2007) for an in-depth noise-induced hearing loss conducted frequency band for biological discussion of these concepts. The from 1996–2015 (i.e., Finneran, 2015). contributions is from approximately 12 distinction between these two sound For study-specific citations, please see Hz to over 100 kHz. Sources of ambient types is not always obvious, as certain that work. Anthropogenic sounds cover sound related to human activity include signals share properties of both pulsed a broad range of frequencies and sound transportation (surface vessels), and non-pulsed sounds. A signal near a levels and can have a range of highly dredging and construction, oil and gas source could be categorized as a pulse, variable impacts on marine life, from drilling and production, geophysical but due to propagation effects as it none or minor to potentially severe surveys, sonar, and explosions. Vessel moves farther from the source, the responses, depending on received noise typically dominates the total signal duration becomes longer (e.g., levels, duration of exposure, behavioral ambient sound for frequencies between Greene and Richardson, 1988). context, and various other factors. The 20 and 300 Hz. In general, the Pulsed sound sources (e.g., airguns, potential effects of underwater sound frequencies of anthropogenic sounds are explosions, gunshots, sonic booms, from active acoustic sources can below 1 kHz and, if higher frequency impact pile driving) produce signals potentially result in one or more of the sound levels are created, they attenuate that are brief (typically considered to be following: temporary or permanent rapidly. less than one second), broadband, atonal hearing impairment, non-auditory The sum of the various natural and transients (ANSI, 1986, 2005; Harris, physical or physiological effects, anthropogenic sound sources that 1998; ISO, 2003) and occur either as behavioral disturbance, stress, and comprise ambient sound at any given isolated events or repeated in some masking (Richardson et al., 1995; location and time depends not only on succession. Pulsed sounds are all Gordon et al., 2004; Nowacek et al., the source levels (as determined by characterized by a relatively rapid rise 2007; Southall et al., 2007; Go¨tz et al., current weather conditions and levels of from ambient pressure to a maximal 2009). The degree of effect is biological and human activity) but also pressure value followed by a rapid intrinsically related to the signal on the ability of sound to propagate decay period that may include a period characteristics, received level, distance through the environment. In turn, sound of diminishing, oscillating maximal and from the source, and duration of the propagation is dependent on the minimal pressures, and generally have sound exposure. In general, sudden, spatially and temporally varying an increased capacity to induce physical high level sounds can cause hearing properties of the water column and sea injury as compared with sounds that loss, as can longer exposures to lower floor, and is frequency-dependent. As a lack these features. Non-pulsed sounds level sounds. Temporary or permanent result of the dependence on a large can be tonal, narrowband, or broadband, loss of hearing will occur almost number of varying factors, ambient brief or prolonged, and may be either exclusively for noise within an animal’s

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hearing range. Below, we describe (PTS) or temporary (TTS). As described a temporary loss of hearing sensitivity specific manifestations of acoustic in NMFS (2016), there are numerous between the frequencies of 1 and 10 effects before providing discussion factors to consider when examining the kHz)), and can be of varying amounts specific to pile driving. consequence of TS, including, but not (for example, an animal’s hearing Richardson et al. (1995) described limited to, the signal temporal pattern sensitivity might be temporarily zones of increasing intensity of effect (e.g., impulsive or non-impulsive), reduced by only 6 dB or reduced by 30 that might be expected to occur, in likelihood an individual would be dB). Depending on the degree (elevation relation to distance from a source and exposed for a long enough duration or of threshold in dB), duration (i.e., assuming that the signal is within an to a high enough level to induce a TS, recovery time), and frequency range of animal’s hearing range. First is the area the magnitude of the TS, time to TTS, and the context in which it is within which the acoustic signal would recovery (seconds to minutes or hours to experienced, TTS can have effects on be audible (potentially perceived) to the days), the frequency range of the marine mammals ranging from animal but not strong enough to elicit exposure (i.e., spectral content), the discountable to serious (similar to those any overt behavioral or physiological hearing and vocalization frequency discussed in auditory masking, below). response. The next zone corresponds range of the exposed species relative to For example, a marine mammal may be with the area where the signal is audible the signal’s frequency spectrum (i.e., able to readily compensate for a brief, to the animal and of sufficient intensity how animal uses sound within the relatively small amount of TTS in a non- to elicit behavioral or physiological frequency band of the signal; e.g., critical frequency range that takes place responsiveness. Third is a zone within Kastelein et al. 2014b), and their overlap during a time when the animal is which, for signals of high intensity, the (e.g., spatial, temporal, and spectral). traveling through the open ocean, where received level is sufficient to potentially ambient noise is lower and there are not Permanent Threshold Shift cause discomfort or tissue damage to as many competing sounds present. auditory or other systems. Overlaying NMFS defines PTS as ‘‘a permanent, Alternatively, a larger amount and these zones to a certain extent is the irreversible increase in the threshold of longer duration of TTS sustained during area within which masking (i.e., when a audibility at a specified frequency or time when communication is critical for sound interferes with or masks the portion of an individual’s hearing range successful mother/calf interactions ability of an animal to detect a signal of above a previously established reference could have more serious impacts. We interest that is above the absolute level’’ (NMFS, 2016). It is the permanent note that reduced hearing sensitivity as hearing threshold) may occur; the elevation in hearing threshold resulting a simple function of aging has been masking zone may be highly variable in from irreparable damage to structures of observed in marine mammals, as well as size. the inner ear (e.g., sensory hair cells, humans and other taxa (Southall et al., We describe the more severe effects cochlea) or central auditory system 2007), so we can infer that strategies (i.e., certain non-auditory physical or (ANSI, 1995; Ketten 2000). Available exist for coping with this condition to physiological effects) only briefly as we data from humans and other terrestrial some degree, though likely not without do not expect that there is a reasonable mammals indicate that a measured 40 cost. likelihood that pile driving may result dB threshold shift approximates PTS Currently, TTS data only exist for four in such effects (see below for further onset (e.g., Kryter et al. 1966; Miller species of cetaceans (bottlenose dolphin discussion). Potential effects from 1974; Henderson et al. 2008). Unlike (Tursiops truncatus), beluga whale impulsive sound sources can range in TTS, NMFS considers PTS auditory (Delphinapterus leucas), harbor severity from effects such as behavioral injury and therefore constitutes Level A porpoise, and Yangtze finless porpoise disturbance or tactile perception to harassment, as defined in the MMPA. (Neophocoena asiaeorientalis)) and physical discomfort, slight injury of the With the exception of a single study three species of pinnipeds (northern internal organs and the auditory system, unintentionally inducing PTS in a elephant seal, harbor seal, and or mortality (Yelverton et al., 1973). harbor seal (Kastak et al., 2008), there California sea lion) exposed to a limited Non-auditory physiological effects or are no empirical data measuring PTS in number of sound sources (i.e., mostly injuries that theoretically might occur in marine mammals largely due to the fact tones and octave-band noise) in marine mammals exposed to high level that, for various ethical reasons, laboratory settings (Finneran, 2015). underwater sound or as a secondary experiments involving anthropogenic TTS was not observed in trained spotted effect of extreme behavioral reactions noise exposure at levels inducing PTS (Phoca largha) and ringed (Pusa (e.g., change in dive profile as a result are not typically pursued or authorized hispida) seals exposed to impulsive of an avoidance reaction) caused by (NMFS, 2016). noise at levels matching previous exposure to sound include neurological predictions of TTS onset (Reichmuth et Temporary Threshold Shift effects, bubble formation, resonance al., 2016). In general, harbor seals and effects, and other types of organ or NMFS defines TTS as ‘‘a temporary, harbor porpoises have a lower TTS tissue damage (Cox et al., 2006; Southall reversible increase in the threshold of onset than other measured pinniped or et al., 2007; Zimmer and Tyack, 2007; audibility at a specified frequency or cetacean species (Finneran, 2015). Tal et al., 2015). The construction portion of an individual’s hearing range Additionally, the existing marine activities considered here do not above a previously established reference mammal TTS data come from a limited involve the use of devices such as level’’ (NMFS, 2016). A TTS of 6 dB is number of individuals within these explosives or mid-frequency tactical considered the minimum threshold shift species. There are no data available on sonar that are associated with these clearly larger than any day-to-day or noise-induced hearing loss for types of effects. session-to-session variation in a mysticetes. For summaries of data on NMFS defines threshold shift (TS) as subject’s normal hearing ability TTS in marine mammals or for further ‘‘a change, usually an increase, in the (Finneran et al., 2000; Finneran et al., discussion of TTS onset thresholds, threshold of audibility at a specified 2002, as reviewed in Southall et al., please see Southall et al. (2007), frequency or portion of an individual’s 2007 for a review)). TTS can last from Finneran and Jenkins (2012), Finneran hearing range above a previously minutes or hours to days (i.e., there is (2015), and NMFS (2016). established reference level’’ (NMFS, recovery), occur in specific frequency Behavioral Effects—Behavioral 2016). Threshold shift can be permanent ranges (i.e., an animal might only have disturbance may include a variety of

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effects, including subtle changes in harassment devices) have been varied response in any given circumstance behavior (e.g., minor or brief avoidance but often consist of avoidance behavior (e.g., Croll et al., 2001; Nowacek et al., of an area or changes in vocalizations), or other behavioral changes suggesting 2004; Madsen et al., 2006; Yazvenko et more conspicuous changes in similar discomfort (Morton and Symonds, 2002; al., 2007). A determination of whether behavioral activities, and more see also Richardson et al., 1995; foraging disruptions incur fitness sustained and/or potentially severe Nowacek et al., 2007). However, many consequences would require reactions, such as displacement from or delphinids approach low-frequency information on or estimates of the abandonment of high-quality habitat. airgun source vessels with no apparent energetic requirements of the affected Behavioral responses to sound are discomfort or obvious behavioral change individuals and the relationship highly variable and context-specific and (e.g., Barkaszi et al., 2012), indicating between prey availability, foraging effort any reactions depend on numerous the importance of frequency output in and success, and the life history stage of intrinsic and extrinsic factors (e.g., relation to the species’ hearing the animal. species, state of maturity, experience, sensitivity. Variations in respiration naturally current activity, reproductive state, Available studies show wide variation vary with different behaviors and auditory sensitivity, time of day), as in response to underwater sound; alterations to breathing rate as a well as the interplay between factors therefore, it is difficult to predict function of acoustic exposure can be (e.g., Richardson et al., 1995; Wartzok et specifically how any given sound in a expected to co-occur with other al., 2003; Southall et al., 2007; Weilgart, particular instance might affect marine behavioral reactions, such as a flight 2007; Archer et al., 2010). Behavioral mammals perceiving the signal. If a response or an alteration in diving. reactions can vary not only among marine mammal does react briefly to an However, respiration rates in and of individuals but also within an underwater sound by changing its themselves may be representative of individual, depending on previous behavior or moving a small distance, the annoyance or an acute stress response. experience with a sound source, impacts of the change are unlikely to be Various studies have shown that context, and numerous other factors significant to the individual, let alone respiration rates may either be (Ellison et al., 2012), and can vary the stock or population. However, if a unaffected or could increase, depending depending on characteristics associated sound source displaces marine on the species and signal characteristics, with the sound source (e.g., whether it mammals from an important feeding or again highlighting the importance in is moving or stationary, number of breeding area for a prolonged period, understanding species differences in the sources, distance from the source). impacts on individuals and populations tolerance of underwater noise when Please see Appendices B–C of Southall could be significant (e.g., Lusseau and determining the potential for impacts et al. (2007) for a review of studies Bejder, 2007; Weilgart, 2007; NRC, resulting from anthropogenic sound involving marine mammal behavioral 2005). However, there are broad exposure (e.g., Kastelein et al., 2001, responses to sound. categories of potential response, which 2005, 2006; Gailey et al., 2007; Gailey et we describe in greater detail here, that al., 2016). Habituation can occur when an include alteration of dive behavior, Marine mammals vocalize for animal’s response to a stimulus wanes alteration of foraging behavior, effects to different purposes and across multiple with repeated exposure, usually in the breathing, interference with or alteration modes, such as whistling, echolocation absence of unpleasant associated events of vocalization, avoidance, and flight. click production, calling, and singing. (Wartzok et al., 2003). Animals are most Changes in dive behavior can vary Changes in vocalization behavior in likely to habituate to sounds that are widely and may consist of increased or response to anthropogenic noise can predictable and unvarying. It is decreased dive times and surface occur for any of these modes and may important to note that habituation is intervals as well as changes in the rates result from a need to compete with an appropriately considered as a of ascent and descent during a dive (e.g., increase in background noise or may ‘‘progressive reduction in response to Frankel and Clark, 2000; Costa et al., reflect increased vigilance or a startle stimuli that are perceived as neither 2003; Ng and Leung, 2003; Nowacek et response. For example, in the presence aversive nor beneficial,’’ rather than as, al., 2004; Goldbogen et al., 2013a, of potentially masking signals, more generally, moderation in response 2013b). Variations in dive behavior may humpback whales and killer whales to human disturbance (Bejder et al., reflect interruptions in biologically have been observed to increase the 2009). The opposite process is significant activities (e.g., foraging) or length of their songs (Miller et al., 2000; sensitization, when an unpleasant they may be of little biological Fristrup et al., 2003; Foote et al., 2004), experience leads to subsequent significance. The impact of an alteration while right whales have been observed responses, often in the form of to dive behavior resulting from an to shift the frequency content of their avoidance, at a lower level of exposure. acoustic exposure depends on what the calls upward while reducing the rate of As noted, behavioral state may affect the animal is doing at the time of the calling in areas of increased type of response. For example, animals exposure and the type and magnitude of anthropogenic noise (Parks et al., 2007). that are resting may show greater the response. In some cases, animals may cease sound behavioral change in response to Disruption of feeding behavior can be production during production of disturbing sound levels than animals difficult to correlate with anthropogenic aversive signals (Bowles et al., 1994). that are highly motivated to remain in sound exposure, so it is usually inferred Avoidance is the displacement of an an area for feeding (Richardson et al., by observed displacement from known individual from an area or migration 1995; NRC, 2003; Wartzok et al., 2003). foraging areas, the appearance of path as a result of the presence of a Controlled experiments with captive secondary indicators (e.g., bubble nets sound or other stressors, and is one of marine mammals have showed or sediment plumes), or changes in dive the most obvious manifestations of pronounced behavioral reactions, behavior. As for other types of disturbance in marine mammals including avoidance of loud sound behavioral response, the frequency, (Richardson et al., 1995). For example, sources (Ridgway et al., 1997; Finneran duration, and temporal pattern of signal gray whales are known to change et al., 2003). Observed responses of wild presentation, as well as differences in direction—deflecting from customary marine mammals to loud pulsed sound species sensitivity, are likely migratory paths—in order to avoid noise sources (typically airguns or acoustic contributing factors to differences in from airgun surveys (Malme et al.,

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1984). Avoidance may be short-term, resulting from reactions to stressors resources must be diverted from other with animals returning to the area once such as sound exposure are more likely functions. This state of distress will last the noise has ceased (e.g., Bowles et al., to be significant if they last more than until the animal replenishes its 1994; Goold, 1996; Stone et al., 2000; one diel cycle or recur on subsequent energetic reserves sufficient to restore Morton and Symonds, 2002; Gailey et days (Southall et al., 2007). normal function. al., 2007). Longer-term displacement is Consequently, a behavioral response Relationships between these possible, however, which may lead to lasting less than one day and not physiological mechanisms, animal changes in abundance or distribution recurring on subsequent days is not behavior, and the costs of stress patterns of the affected species in the considered particularly severe unless it responses are well-studied through affected region if habituation to the could directly affect reproduction or controlled experiments and for both presence of the sound does not occur survival (Southall et al., 2007). Note that laboratory and free-ranging animals (e.g., Blackwell et al., 2004; Bejder et al., there is a difference between multi-day (e.g., Holberton et al., 1996; Hood et al., 2006; Teilmann et al., 2006). substantive behavioral reactions and 1998; Jessop et al., 2003; Krausman et A flight response is a dramatic change multi-day anthropogenic activities. For al., 2004; Lankford et al., 2005). Stress in normal movement to a directed and example, just because an activity lasts responses due to exposure to rapid movement away from the for multiple days does not necessarily anthropogenic sounds or other stressors perceived location of a sound source. mean that individual animals are either and their effects on marine mammals The flight response differs from other exposed to activity-related stressors for have also been reviewed (Fair and avoidance responses in the intensity of multiple days or, further, exposed in a Becker, 2000; Romano et al., 2002b) the response (e.g., directed movement, manner resulting in sustained multi-day and, more rarely, studied in wild rate of travel). Relatively little substantive behavioral responses. populations (e.g., Romano et al., 2002a). information on flight responses of Stress Responses—An animal’s For example, Rolland et al. (2012) found marine mammals to anthropogenic perception of a threat may be sufficient that noise reduction from reduced ship signals exist, although observations of to trigger stress responses consisting of traffic in the Bay of Fundy was flight responses to the presence of some combination of behavioral associated with decreased stress in predators have occurred (Connor and responses, autonomic nervous system North Atlantic right whales. These and Heithaus, 1996). The result of a flight responses, neuroendocrine responses, or other studies lead to a reasonable response could range from brief, immune responses (e.g., Seyle, 1950; expectation that some marine mammals temporary exertion and displacement Moberg, 2000). In many cases, an will experience physiological stress from the area where the signal provokes animal’s first and sometimes most responses upon exposure to acoustic flight to, in extreme cases, marine economical (in terms of energetic costs) stressors and that it is possible that mammal strandings (Evans and response is behavioral avoidance of the some of these would be classified as England, 2001). However, it should be potential stressor. Autonomic nervous ‘‘distress.’’ In addition, any animal noted that response to a perceived system responses to stress typically experiencing TTS would likely also predator does not necessarily invoke involve changes in heart rate, blood experience stress responses (NRC, flight (Ford and Reeves, 2008), and pressure, and gastrointestinal activity. 2003). whether individuals are solitary or in These responses have a relatively short Auditory Masking—Sound can groups may influence the response. duration and may or may not have a disrupt behavior through masking, or Behavioral disturbance can also significant long-term effect on an interfering with, an animal’s ability to impact marine mammals in more subtle animal’s fitness. detect, recognize, or discriminate ways. Increased vigilance may result in Neuroendocrine stress responses often between acoustic signals of interest (e.g., costs related to diversion of focus and involve the hypothalamus-pituitary- those used for intraspecific attention (i.e., when a response consists adrenal system. Virtually all communication and social interactions, of increased vigilance, it may come at neuroendocrine functions that are prey detection, predator avoidance, the cost of decreased attention to other affected by stress—including immune navigation) (Richardson et al., 1995; critical behaviors such as foraging or competence, reproduction, metabolism, Erbe et al., 2016). Masking occurs when resting). These effects have generally not and behavior—are regulated by pituitary the receipt of a sound is interfered with been demonstrated for marine hormones. Stress-induced changes in by another coincident sound at similar mammals, but studies involving fish the secretion of pituitary hormones have frequencies and at similar or higher and terrestrial animals have shown that been implicated in failed reproduction, intensity, and may occur whether the increased vigilance may substantially altered metabolism, reduced immune sound is natural (e.g., snapping shrimp, reduce feeding rates (e.g., Beauchamp competence, and behavioral disturbance wind, waves, precipitation) or and Livoreil). In addition, chronic (e.g., Moberg, 1987; Blecha, 2000). anthropogenic (e.g., shipping, sonar, disturbance can cause population Increases in the circulation of seismic exploration) in origin. The declines through reduction of fitness glucocorticoids are also equated with ability of a noise source to mask (e.g., decline in body condition) and stress (Romano et al., 2004). biologically important sounds depends subsequent reduction in reproductive The primary distinction between on the characteristics of both the noise success, survival, or both (e.g., stress (which is adaptive and does not source and the signal of interest (e.g., Harrington and Veitch, 1992; Daan et normally place an animal at risk) and signal-to-noise ratio, temporal al., 1996; Bradshaw et al., 1998). ‘‘distress’’ is the cost of the response. variability, direction), in relation to each However, Ridgway et al. (2006) reported During a stress response, an animal uses other and to an animal’s hearing that increased vigilance in bottlenose glycogen stores that can be quickly abilities (e.g., sensitivity, frequency dolphins exposed to sound over a five- replenished once the stress is alleviated. range, critical ratios, frequency day period did not cause any sleep In such circumstances, the cost of the discrimination, directional deprivation or stress effects. stress response would not pose serious discrimination, age or TTS hearing loss), Many animals perform vital functions, fitness consequences. However, when and existing ambient noise and such as feeding, resting, traveling, and an animal does not have sufficient propagation conditions. socializing, on a diel cycle (24-hour energy reserves to satisfy the energetic Under certain circumstances, marine cycle). Disruption of such functions costs of a stress response, energy mammals experiencing significant

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masking could also be impaired from Potential Effects of the Activity—As harassment under the MMPA would maximizing their performance fitness in described previously (see ‘‘Description occur concurrently within the zones of survival and reproduction. Therefore, of Active Acoustic Sound Sources’’), the behavioral harassment already when the coincident (masking) sound is Navy proposes to conduct pile driving, estimated for vibratory and impact pile man-made, it may be considered including impact and vibratory driving. driving, and which have already been harassment when disrupting or altering The effects of pile driving on marine taken into account in the exposure critical behaviors. It is important to mammals are dependent on several analysis. distinguish TTS and PTS, which persist factors, including the size, type, and Anticipated Effects on Marine Mammal after the sound exposure, from masking, depth of the animal; the depth, Habitat which occurs during the sound intensity, and duration of the pile exposure. Because masking (without driving sound; the depth of the water The proposed activities would not resulting in TS) is not associated with column; the substrate of the habitat; the result in permanent impacts to habitats abnormal physiological function, it is standoff distance between the pile and used directly by marine mammals, but not considered a physiological effect, the animal; and the sound propagation may have potential short-term impacts but rather a potential behavioral effect. properties of the environment. With to food sources such as forage fish. The The frequency range of the potentially both types of pile driving, it is likely proposed activities could also affect masking sound is important in that the onset of pile driving could acoustic habitat (see masking discussion determining any potential behavioral result in temporary, short term changes above), but meaningful impacts are impacts. For example, low-frequency in an animal’s typical behavioral unlikely. There are no known foraging signals may have less effect on high- patterns and/or avoidance of the hotspots, or other ocean bottom frequency echolocation sounds affected area. structures of significant biological produced by odontocetes but are more These behavioral changes may importance to marine mammals present likely to affect detection of mysticete include changing durations of surfacing in the marine waters in the vicinity of communication calls and other and dives, number of blows per the project areas. Therefore, the main potentially important natural sounds surfacing, or moving direction and/or impact issue associated with the such as those produced by surf and speed; reduced/increased vocal proposed activity would be temporarily some prey species. The masking of activities; changing/cessation of certain elevated sound levels and the associated communication signals by behavioral activities (such as socializing direct effects on marine mammals, as anthropogenic noise may be considered or feeding); visible startle response or discussed previously in this preamble. as a reduction in the communication aggressive behavior (such as tail/fluke The most likely impact to marine space of animals (e.g., Clark et al., 2009) slapping or jaw clapping); avoidance of mammal habitat occurs from pile and may result in energetic or other areas where sound sources are located; driving effects on likely marine mammal costs as animals change their and/or flight responses (Richardson et prey (i.e., fish) near the six installations. vocalization behavior (e.g., Miller et al., al., 1995). Impacts to the immediate substrate 2000; Foote et al., 2004; Parks et al., The biological significance of many of during installation and removal of piles 2007; Di Iorio and Clark, 2009; Holt et these behavioral disturbances is difficult are anticipated, but these would be al., 2009). Masking can be reduced in to predict, especially if the detected limited to minor, temporary suspension situations where the signal and noise disturbances appear minor. However, of sediments, which could impact water come from different directions the consequences of behavioral quality and visibility for a short amount (Richardson et al., 1995), through modification could be expected to be of time, but which would not be amplitude modulation of the signal, or biologically significant if the change expected to have any effects on through other compensatory behaviors affects growth, survival, or individual marine mammals. Impacts to (Houser and Moore, 2014). Masking can reproduction. Significant behavioral substrate are therefore not discussed be tested directly in captive species modifications that could lead to effects further. (e.g., Erbe, 2008), but in wild on growth, survival, or reproduction, Effects to Prey—Sound may affect populations it must be either modeled such as drastic changes in diving/ marine mammals through impacts on or inferred from evidence of masking surfacing patterns or significant habitat the abundance, behavior, or distribution compensation. There are few studies abandonment are extremely unlikely in of prey species (e.g., crustaceans, addressing real-world masking sounds this area (i.e., shallow waters in cephalopods, fish, zooplankton). Marine likely to be experienced by marine modified industrial areas). mammal prey varies by species, season, mammals in the wild (e.g., Branstetter et The onset of behavioral disturbance and location and, for some, is not well al., 2013). from anthropogenic sound depends on documented. Here, we describe studies Masking affects both senders and both external factors (characteristics of regarding the effects of noise on known receivers of acoustic signals and can sound sources and their paths) and the marine mammal prey. potentially have long-term chronic specific characteristics of the receiving Fish utilize the soundscape and effects on marine mammals at the animals (hearing, motivation, components of sound in their population level as well as at the experience, demography) and is difficult environment to perform important individual level. Low-frequency to predict (Southall et al., 2007). functions such as foraging, predator ambient sound levels have increased by Whether impact or vibratory driving, avoidance, mating, and spawning (e.g., as much as 20 dB (more than three times sound sources would be active for Zelick et al., 1999; Fay, 2009). in terms of SPL) in the world’s ocean relatively short durations, with relation Depending on their hearing anatomy from pre-industrial periods, with most to potential for masking. The and peripheral sensory structures, of the increase from distant commercial frequencies output by pile driving which vary among species, fishes hear shipping (Hildebrand, 2009). All activity are lower than those used by sounds using pressure and particle anthropogenic sound sources, but most species expected to be regularly motion sensitivity capabilities and especially chronic and lower-frequency present for communication or foraging. detect the motion of surrounding water signals (e.g., from vessel traffic), We expect insignificant impacts from (Fay et al., 2008). The potential effects contribute to elevated ambient sound masking, and any masking event that of noise on fishes depends on the levels, thus intensifying masking. could possibly rise to Level B overlapping frequency range, distance

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from the sound source, water depth of driving stops is unknown, but a rapid authorized for this activity. Below we exposure, and species-specific hearing return to normal recruitment, describe how the take is estimated. sensitivity, anatomy, and physiology. distribution and behavior is anticipated. Described in the most basic way, we Key impacts to fishes may include In general, impacts to marine mammal estimate take by considering: (1) behavioral responses, hearing damage, prey species are expected to be minor Acoustic thresholds above which NMFS barotrauma (pressure-related injuries), and temporary due to the expected short believes the best available science and mortality. daily duration of individual pile driving indicates marine mammals will be Fish react to sounds which are events and the relatively small areas behaviorally harassed or incur some especially strong and/or intermittent being affected. It is also not expected degree of permanent hearing low-frequency sounds, and behavioral that the industrial environment around impairment; (2) the area or volume of responses such as flight or avoidance the terminal and nearby Naval water that will be ensonified above are the most likely effects. Short installation provides important fish these levels in a day; (3) the density or duration, sharp sounds can cause overt habitat or harbors significant amounts of occurrence of marine mammals within or subtle changes in fish behavior and forage fish. these ensonified areas; and, (4) and the local distribution. The reaction of fish to The area likely impacted by the number of days of activities. Below, we noise depends on the physiological state activities is relatively small compared to describe these components in more of the fish, past exposures, motivation the available habitat in inland waters in detail and present the proposed take (e.g., feeding, spawning, migration), and the region. Any behavioral avoidance by estimate. other environmental factors. Hastings fish of the disturbed area would still Acoustic Thresholds and Popper (2005) identified several leave significantly large areas of fish and Using the best available science, studies that suggest fish may relocate to marine mammal foraging habitat in the NMFS has developed acoustic avoid certain areas of sound energy. nearby vicinity. As described in the thresholds that identify the received Additional studies have documented preceding, the potential for Navy level of underwater sound above which effects of pile driving on fish, although construction to affect the availability of several are based on studies in support exposed marine mammals would be prey to marine mammals or to reasonably expected to be behaviorally of large, multiyear bridge construction meaningfully impact the quality of projects (e.g., Scholik and Yan, 2001, harassed (equated to Level B physical or acoustic habitat is harassment) or to incur PTS of some 2002; Popper and Hastings, 2009). considered to be insignificant. Effects to Several studies have demonstrated that degree (equated to Level A harassment). habitat will not be discussed further in Level B Harassment for non-explosive impulse sounds might affect the this document. distribution and behavior of some sources—Though significantly driven by fishes, potentially impacting foraging Estimated Take received level, the onset of behavioral disturbance from anthropogenic noise opportunities or increasing energetic This section provides an estimate of costs (e.g., Fewtrell and McCauley, exposure is also informed to varying the number of incidental takes proposed degrees by other factors related to the 2012; Pearson et al., 1992; Skalski et al., for authorization through this IHA, 1992; Santulli et al., 1999; Paxton et al., source (e.g., frequency, predictability, which will inform both NMFS’ duty cycle), the environment (e.g., 2017). However, some studies have consideration of ‘‘small numbers’’ and shown no or slight reaction to impulse bathymetry), and the receiving animals the negligible impact determination. sounds (e.g., Pena et al., 2013; Wardle (hearing, motivation, experience, Harassment is the only type of take et al., 2001; Jorgenson and Gyselman, demography, behavioral context) and expected to result from these activities. 2009; Cott et al., 2012). More can be difficult to predict (Southall et commonly, though, the impacts of noise Except with respect to certain activities al., 2007, Ellison et al., 2011). Based on on fish are temporary. not pertinent here, section 3(18) of the what the available science indicates and SPLs of sufficient strength have been MMPA defines ‘‘harassment’’ as any act the practical need to use a threshold known to cause injury to fish and fish of pursuit, torment, or annoyance which based on a factor that is both predictable mortality. However, in most fish (i) has the potential to injure a marine and measurable for most activities, species, hair cells in the ear mammal or marine mammal stock in the NMFS uses a generalized acoustic continuously regenerate and loss of wild (Level A harassment); or (ii) has threshold based on received level to auditory function likely is restored the potential to disturb a marine estimate the onset of behavioral when damaged cells are replaced with mammal or marine mammal stock in the harassment. NMFS predicts that marine new cells. Halvorsen et al. (2012a) wild by causing disruption of behavioral mammals are likely to be behaviorally showed that a TTS of 4 to 6 dB was patterns, including, but not limited to, harassed in a manner we consider Level recoverable within 24 hours for one migration, breathing, nursing, breeding, B harassment when exposed to species. Impacts would be most severe feeding, or sheltering (Level B underwater anthropogenic noise above when the individual fish is close to the harassment). received levels of 120 dB re 1 mPa (rms) source and when the duration of Authorized takes would be by Level B for continuous (e.g., vibratory pile- exposure is long. Injury caused by harassment only, in the form of driving, drilling) and above 160 dB re 1 barotrauma can range from slight to disruption of behavioral patterns for mPa (rms) for non-explosive impulsive severe and can cause death, and is most individual marine mammals resulting (e.g., seismic airguns) or intermittent likely for fish with swim bladders. from exposure to pile driving. Based on (e.g., scientific sonar) sources. For in-air Barotrauma injuries have been the nature of the activity and the sounds, NMFS predicts that phocids documented during controlled exposure anticipated effectiveness of the and otariids exposed above received to impact pile driving (Halvorsen et al., mitigation measures (i.e., shutdown levels of 90 dB and 100 dB re 20 mPa 2012b; Casper et al., 2013). measures—discussed in detail below in (rms), respectively, may be behaviorally The most likely impact to fish from Proposed Mitigation section), Level A harassed. pile driving activities at the project harassment is neither anticipated nor Kitsap Transit’s project includes the areas would be temporary behavioral proposed to be authorized. use of continuous (vibratory pile avoidance of the area. The duration of As described previously, no mortality driving) and impulsive (impact pile fish avoidance of an area after pile is anticipated or proposed to be driving) sources, and therefore the 120

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and 160 dB re 1 mPa (rms) are five different marine mammal groups These thresholds are provided in applicable. (based on hearing sensitivity) as a result Table 3. The references, analysis, and Level A harassment for non-explosive of exposure to noise from two different methodology used in the development sources—NMFS’ Technical Guidance types of sources (impulsive or non- of the thresholds are described in NMFS for Assessing the Effects of impulsive). Kitsap Transit’s proposed 2016 Technical Guidance, which may Anthropogenic Sound on Marine activity includes the use of impulsive be accessed at: http:// Mammal Hearing (Technical Guidance, (impact pile driving) and non-impulsive www.nmfs.noaa.gov/pr/acoustics/ 2016) identifies dual criteria to assess (vibratory pile driving) sources. guidelines.htm. auditory injury (Level A harassment) to

TABLE 3—THRESHOLDS IDENTIFYING THE ONSET OF PERMANENT THRESHOLD SHIFT

PTS onset acoustic thresholds * Hearing group (received level) Impulsive Non-impulsive

Low-Frequency (LF) Cetaceans ...... Cell 1: Lpk,flat: 219 dB; LE,LF,24h: 183 dB ...... Cell 2: LE,LF,24h: 199 dB. Mid-Frequency (MF) Cetaceans ...... Cell 3: Lpk,flat: 230 dB; LE,MF,24h: 185 dB ...... Cell 4: LE,MF,24h: 198 dB. High-Frequency (HF) Cetaceans ...... Cell 5: Lpk,flat: 202 dB; LE,HF,24h: 155 dB ...... Cell 6: LE,HF,24h: 173 dB. Phocid Pinnipeds (PW) (Underwater) ...... Cell 7: Lpk,flat: 218 dB; LE,PW,24h: 185 dB ...... Cell 8: LE,PW,24h: 201 dB. Otariid Pinnipeds (OW) (Underwater) ...... Cell 9: Lpk,flat: 232 dB; LE,OW,24h: 203 dB ...... Cell 10: LE,OW,24h: 219 dB. * Dual metric acoustic thresholds for impulsive sounds: Use whichever results in the largest isopleth for calculating PTS onset. If a non-impul- sive sound has the potential of exceeding the peak sound pressure level thresholds associated with impulsive sounds, these thresholds should also be considered. 2 Note: Peak sound pressure (Lpk) has a reference value of 1 μPa, and cumulative sound exposure level (LE) has a reference value of 1 μPa s. In this Table, thresholds are abbreviated to reflect American National Standards Institute standards (ANSI 2013). However, peak sound pressure is defined by ANSI as incorporating frequency weighting, which is not the intent for this Technical Guidance. Hence, the subscript ‘‘flat’’ is being included to indicate peak sound pressure should be flat weighted or unweighted within the generalized hearing range. The subscript associated with cumulative sound exposure level thresholds indicates the designated marine mammal auditory weighting function (LF, MF, and HF cetaceans, and PW and OW pinnipeds) and that the recommended accumulation period is 24 hours. The cumulative sound exposure level thresholds could be exceeded in a multitude of ways (i.e., varying exposure levels and duration, duty cycle). When possible, it is valuable for ac- tion proponents to indicate the conditions under which these acoustic thresholds will be exceeded.

Ensonified Area absence of reflective or absorptive measurements available for certain pile Here, we describe operational and conditions including in-water structures types and sizes from the specific environmental parameters of the activity and sediments. Spherical spreading environment of several of the that will feed into identifying the area occurs in a perfectly unobstructed (free- installations considered here (i.e., NBK ensonified above the acoustic field) environment not limited by depth Bangor and NBK Bremerton), but not thresholds. or water surface, resulting in a 6 dB from all. Numerous studies have reduction in sound level for each examined sound pressure levels (SPLs) Sound Propagation—Transmission doubling of distance from the source recorded from underwater pile driving loss (TL) is the decrease in acoustic (20*log(range)). Cylindrical spreading projects in California (e.g., Caltrans, intensity as an acoustic pressure wave occurs in an environment in which 2015) and elsewhere in Washington. In propagates out from a source. TL sound propagation is bounded by the order to determine reasonable SPLs and parameters vary with frequency, water surface and sea bottom, resulting their associated effects on marine temperature, sea conditions, current, in a reduction of 3 dB in sound level for mammals that are likely to result from source and receiver depth, water depth, each doubling of distance from the pile driving at the six installations, water chemistry, and bottom source (10*log(range)). As is common studies with similar properties to the composition and topography. The practice in coastal waters, here we specified activity were evaluated. general formula for underwater TL is: assume practical spreading loss (4.5 dB No direct pile driving measurements TL = B * log10(R1/R2), reduction in sound level for each at the Annapolis Ferry Dock are Where: doubling of distance). Practical available. Therefore, Kitsap Transit B = transmission loss coefficient (assumed to spreading is a compromise that is often reviewed available values from multiple be 15) used under conditions where water nearshore marine projects obtained from R1 = the distance of the modeled SPL from depth increases as the receiver moves the California Department of the driven pile, and away from the shoreline, resulting in an Transportation (Caltrans) using similar R2 = the distance from the driven pile of the expected propagation environment that type of piles (e.g., size and material) and initial measurement. would lie between spherical and water depth (Caltrans, 2015). NMFS also This formula neglects loss due to cylindrical spreading loss conditions. evaluated the proposed source levels scattering and absorption, which is Sound Source Levels—The intensity with respected to pile driving assumed to be zero here. The degree to of pile driving sounds is greatly measurements made by the Washington which underwater sound propagates influenced by factors such as the type of Department of Transportation (WSDOT) away from a sound source is dependent piles, hammers, and the physical at other ferry terminals in Puget Sound on a variety of factors, most notably the environment in which the activity takes as well as measurements collected by water bathymetry and presence or place. There are source level the Navy in Puget Sound.

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TABLE 4—ESTIMATED PILE DRIVING SOURCE LEVELS

Sound pressure (dB re: 1 μPa) Method Pile size (inches) SPL 1 SPL SEL 1 (peak) (rms) 1

Impact ...... 12 192 177 167 24 207 194 178 Vibratory ...... 12 171 155 155 24 178 165 165 Vibratory Removal ...... 16.5–18 175 160 160 1 Source levels presented at standard distance of 10 m from the driven pile. Peak source levels are not typically evaluated for vibratory pile driving, as vibratory driving does not present rapid rise times. SEL source levels for vibratory driving are equivalent to SPL (rms) source levels.

The source levels presented in Table Conoco-Phillips dock, and Deep Water- overestimate of Level A take. However, 4 are those proposed by Kitsap Transit Tongue Point Facility Pier Repairs) these tools offer the best way to predict and correspond with those found in produced SELs ranging from 168 to 177 appropriate isopleths when more Caltrans (2015). However, because dB SEL. Second, we accept Kitsap sophisticated 3D modeling methods are NMFS recently proposed regulations for Transit’s proposed source levels because not available, and NMFS continues to the U.S. Navy at multiple sites they would employ bubble curtains develop ways to quantitatively refine throughout Puget Sound, including NBK during all impact pile driving which is these tools, and will qualitatively Bremerton located across Sinclair Inlet, known to reduce noise levels but we are address the output where appropriate. NMFS also evaluated source levels used not accounting for that attenuation in For stationary sources such as pile in that proposed rule. The source level this proposed IHA. Kitsap Transit’s driving, NMFS User Spreadsheet provided in the Navy’s proposed rule proposed source levels for impact pile predicts the closest distance at which, if (83 FR 9366; March 5, 2018) for impact driving 12-in steel piles and all a marine mammal remained at that pile driving 24-in steel piles is slightly vibratory pile driving and pile removal distance the whole duration of the higher than that being used for this correspond to or are slightly greater than activity, it would not incur PTS. A proposed IHA. Kitsap Transit proposed those in Caltrans (2015) and the Navy’s description of inputs used in the User a source level of 178 dB SEL for impact proposed rule; therefore, we apply them Spreadsheet, and the resulting isopleths pile driving 24-in steel piles in their here. are reported below. application while the Navy proposed When NMFS Technical Guidance Kitsap Transit estimates it will take a (and NMFS included in the proposed (2016) was published, in recognition of maximum of six hours, per day, to rule) a source level of 181 dB SEL. the fact that ensonified area/volume install or remove piles using a vibratory However, we accept Kitsap Transit’s could be more technically challenging hammer (up to four piles per day). For proposed source levels for two reasons. to predict because of the duration steel piles that are ‘‘proofed,’’ Kitsap First, the Navy excluded three projects component in the new thresholds, we Transit estimated approximately 1,000 for which data from 24-in pile driving developed a User Spreadsheet that hammer strikes per pile would be was available due to a low number of includes tools to help predict a simple required with two piles installed per pile strikes and because these projects isopleth that can be used in conjunction day. If piles can be installed completely produced lower SEL values than the two with marine mammal density or with the vibratory hammer, Kitsap projects considered in the proposed occurrence to help predict takes. We Transit would not use an impact rule. Overall, the mean SEL per any one note that because of some of the hammer; however, it is included here as pile for the two projects considered by assumptions included in the methods a possibility. A practical spreading the Navy (Bainbridge Island and Friday used for these tools, we anticipate that model (15logR) was used for all Harbor) ranged from 176 to 185 dB; isopleths produced are typically going calculation. NMFS considered these however, the three projects not to be overestimates of some degree, inputs when using the NMFS user considered (Bangor Test Pile Program, which will result in some degree of spreadsheet (Table 5).

TABLE 5—NMFS USER SPREADSHEET INPUTS

Input parameter Vibratory pile driving Impact pile driving

Weighting Factor Adjustment 1 ...... 2.5 kHz ...... 2 kHz. Source Level (SL) ...... See Table 4 (rms values) ...... See Table 4 (SEL values). Duration ...... 6 hours ...... n/a. Strikes per pile ...... n/a ...... 1,000. Piles per day ...... n/a ...... 2. Transmission loss coefficient ...... 15 ...... 15. Distance from SL measurement ...... 10 m ...... 10 m.

1 For those applicants who cannot fully apply auditory weighting functions associated with the SELcum metric, NMFS has recommended the de- fault, single frequency weighting factor adjustments (WFAs) provided here. As described in Appendix D of NMFS’ Technical Guidance (NMFS, 2016), the intent of the WFA is to broadly account for auditory weighting functions below the 95 frequency contour percentile. Use of single fre- quency WFA is likely to over-predict Level A harassment distances.

As described above, the Level B dB rms. The Level B harassment Distances corresponding to received harassment threshold for impulsive threshold for continuous noise (e.g., levels reaching NMFS harassment noise (e.g., impact pile driving) is 160 vibratory pile driving) is 120 dB rms. thresholds are provided in Table 6.

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These distances represent the distance species would remain at these distances zones mirroring these calculated at which an animal would have to for the entire duration of pile driving outputs to avoid Level A harassment. remain for the entire duration within a day. As a result, these We have slightly modified them and considered (i.e., 6 hours of vibratory distances represent the calculated believe these modifications woulwhile pile driving, 2,000 hammer strikes) for outputs of the User Spreadsheet but, in we have proposed simWe Table 6 have the potential onset of PTS to occur. reality, do not reflect a likely scenario also provided the area ensonified to the These results do not consider the time for the potential onset of Level A Level B harassment threshold in Table it takes to re-set between piles; harassment. Regardless, Kitsap Transit 6; these areas have been truncated to therefore, it is highly unlikely any has proposed to implement shut-down account for land. TABLE 6—DISTANCES TO LEVEL A AND B HARASSMENT THRESHOLDS AND AREA ENSONIFIED

Pile size Distance to Level A (meters) Level B Level B area Method 2 (inches) LF cetaceans MF cetaceans HF cetaceans Phocids Otariids (meters) (km )

Impact (install) ...... 12 136 4.8 162.0 72.8 5.3 136 0.1 24 735.8 26.2 876.4 393.8 28.7 1,848 5.5 Vibratory (install) ...... 12 9.0 0.8 13.3 5.5 0.4 2,154 6.5 24 41.7 3.7 61.6 25.3 1.8 10,000 19.2 Vibratory (removal) ...... 16.5–18 19.3 1.7 28.6 11.8 0.8 4,612 14.3

Marine Mammal Occurrence vicinity of the Annapolis Ferry for harbor porpoise are available in Terminal includes density information Jefferson et al. (2016). In this section we provide the aggregated in the Navy’s Marine Specifically, a density-based analysis information about the presence, density, Mammal Species Density Database is used for the harbor porpoise, Dall’s or group dynamics of marine mammals (NMSDD; Navy, 2015) or site-specific porpoise, and Steller sea lion, while that will inform the take calculations. survey information from particular data from site-specific abundance Available information regarding installations (e.g., local pinniped surveys is used for the California sea marine mammal occurrence in the counts). More recent density estimates lion and harbor seal (Table 7).

TABLE 7—DENSITY OR PINNIPED COUNT DATA, BY SPECIES

Species Density Average daily (animals/km2) pinniped count

Harbor seal ...... 1.22 n/a Steller sea lion ...... 0.036 n/a California sea lion ...... n/a 69 Harbor Porpoise ...... 0.89 n/a

Take Calculation and Estimation (either Level A or Level B) of humpback are calculated as 1.22 animals/km2 × 6.5 2 × Here we describe how the information whales, gray whales, and killer whales km 4 days = 32 exposures. Harbor provided above is brought together to was requested or is proposed to be seal exposures due to installing 24 in. 2 × 2 × produce a quantitative take estimate. authorized due to the short duration of piles is 1.22 animals/km 19.2 km Kitsap Transit did not request, and we the project (17 days), the small amount 8 days = 187 exposures. Finally, harbor are not proposing, to authorize Level A of piles installed (12) and removed (5), seal exposures due to pile removal is take of any species. The User and the incorporation of the proposed 1.22 animals/km2 × 14.3 km2 × 5 days Spreadsheet does calculate distances at mitigation and monitoring measures = 87 exposures. Although we anticipate which Level A take could occur for all (see Mitigation and Monitoring some seals may be exposed more than pile activity. The largest resulting sections). once, we consider each exposure to distances are for the installation of 24- The take calculation for harbor seal, constitute a take. Therefore, total in piles. The calculated distance Steller sea lion, and harbor porpoise estimated take is 306 harbor seals. This represents the distance at which an exposures is derived using the following process was repeated for Steller sea animal would have to remain while equation: Level B exposure estimate = lions and harbor porpoise using their exposed to the installation of two piles species density (see Table 7) × respective densities (see Table 7). (with time in between to reset the ensonified area (based on pile size) × The calculation for California sea lion hammer to the next pile) at 1,000 strikes number of pile driving days. Because exposures is estimated by the following per pile. In addition, only eight 24-in there would be 5 days of pile removal, equation: Level B Exposure estimate = N piles are to be installed for the project. four 12 in. piles installed over four days (estimated animals/day) × number of The harbor porpoise Level A harassment (maximum), and eight 24 in. piles pile driving days. Because density is not distance is 876 m; however, harbor installed over eight days (maximum), used for this species, we simply porpoise are likely transiting through we summed each product together to assumed 69 sea lions could be taken on the area, if present at all. Harbor seals produce a total take estimate. When any given day of pile driving. Therefore, may remain in the area. Therefore, with impact and vibratory hammer use 69 California sea lion/day × 17 days = the incorporation of the proposed would occur on the same day, the larger 1,173 California sea lion takes. mitigation measures, we do not believe Level B ensonifed zone for that day was The total estimated take for all species there is a likely potential for Level A used. For example, harbor seal incidental to 17 days of pile driving is take for any species. Further, no take exposures due to 12 inch pile driving provided in Table 8.

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TABLE 8—ESTIMATED TAKE, BY SPECIES AND STOCK, INCIDENTAL TO PILE DRIVING

Total take Percent of Species Stock (Level B) stock

Harbor seal ...... Southern Puget Sound ...... 306 19.5 Steller sea lion ...... Eastern DPS ...... 10 0.01 California sea lion ...... U.S ...... 1,173 0.4 Harbor Porpoise ...... Washington Inland Waters ...... 224 2.0

Proposed Mitigation implementation of the measure(s) is For in-water heavy machinery work In order to issue an IHA under expected to reduce impacts to marine (e.g., barges, tug boats), a minimum 10 Section 101(a)(5)(D) of the MMPA, mammals, marine mammal species or m shutdown zone shall be NMFS must set forth the permissible stocks, and their habitat. This considers implemented. If a marine mammal methods of taking pursuant to such the nature of the potential adverse comes within 10 m of such operations, activity, and other means of effecting impact being mitigated (likelihood, operations shall cease and vessels shall the least practicable impact on such scope, range). It further considers the reduce speed to the minimum level species or stock and its habitat, paying likelihood that the measure will be required to maintain steerage and safe particular attention to rookeries, mating effective if implemented (probability of working conditions. grounds, and areas of similar accomplishing the mitigating result if Kitsap Transit proposes to shut down significance, and on the availability of implemented as planned) the likelihood pile driving if marine mammals for such species or stock for taking for of effective implementation (probability which they requested take enter the certain subsistence uses (latter not implemented as planned). and; Level A harassment zones as calculated applicable for this action). NMFS (2) the practicability of the measures in Table 6. However, these distances regulations require applicants for for applicant implementation, which represent a very long duration (6 hours incidental take authorizations to include may consider such things as cost, for pile driving plus an unknown information about the availability and impact on operations, and, in the case amount of time to re-set piles) during feasibility (economic and technological) of a military readiness activity, vibratory pile driving. Therefore, we of equipment, methods, and manner of personnel safety, practicality of have adjusted the shutdown zones to a conducting such activity or other means implementation, and impact on the more practicable level. We also of effecting the least practicable adverse effectiveness of the military readiness incorporate the shutdown zones impact upon the affected species or activity. corresponding to Level B harassment for humpback whales, gray whales, and stocks and their habitat (50 CFR Mitigation for Marine Mammals and killer whales. Kitsap Transit shall 216.104(a)(11)). Their Habitat In evaluating how mitigation may or implement shutdown zones as may not be appropriate to ensure the Kitsap Transit has proposed a number identified in Table 9 to avoid Level A least practicable adverse impact on of mitigation measures designed to take of seals, sea lions, and harbor species or stocks and their habitat, as minimize the impacts of the project on porpoise as well as Level A and Level well as subsistence uses where marine mammals and their habitat. B take of humpback whales, gray applicable, we carefully consider two Below is a description of these measures whales, and killer whales. Kitsap primary factors: which can also be found in the draft Transit shall also implement a (1) The manner in which, and the proposed IHA text provided at the end minimum shutdown zone of a 10 m degree to which, the successful of this document. radius around the pile.

TABLE 9—SHUTDOWN ZONES TO AVOID HEAVY EQUIPMENT INJURY, LEVEL A HARASSMENT, OR LEVEL B HARASSMENT

Shutdown zones (m) Species ″ ″ ″ ″ Vibratory Impact 12 Impact 24 Vibratory 12 Vibratory 24 removal

Humpback whale, Gray whale, Killer whale ...... 136 1,848 2,154 10,000 4,612 Harbor porpoise ...... 160 875 13 60 28 Harbor seal ...... 73 390 1 10 25 11 Steller sea lion, California sea lion ...... 1 10 29 1 10 1 10 1 10 1 NMFS is proposing a minimum 10 m shutdown zone to avoid potential injury from equipment.

Pre-activity monitoring shall take mammals, which includes delaying start activities or pre-activity monitoring, all place from 30 minutes prior to initiation of pile driving activities if a marine pile driving activities at that location of pile driving activity and post-activity mammal is sighted in the shutdown shall be halted or delayed, respectively. monitoring shall continue through 30 zone. A determination that the If pile driving is halted or delayed due minutes post-completion of pile driving shutdown zone is clear must be made to the presence of a marine mammal, the activity. Pile driving may commence at during a period of good visibility (i.e., activity may not resume or commence the end of the 30-minute pre-activity the entire shutdown zone and until either the animal has voluntarily monitoring period, provided observers surrounding waters must be visible to left and been visually confirmed beyond have determined that the shutdown the naked eye). the shutdown zone and 15 minutes have If a marine mammal approaches or zone (see Table 6) is clear of marine passed without re-detection of the enters the shutdown zone during

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animal. Pile driving activities include attention to rookeries, mating grounds, procedures, when applicable, through the time to install or remove a single and areas of similar significance. communication with the equipment pile or series of piles, as long as the time operator. Proposed Monitoring and Reporting elapsed between uses of the pile driving If water conditions exceed a Beaufort equipment is no more than thirty In order to issue an IHA for an level 2, or if visibility is limited by rain minutes. activity, Section 101(a)(5)(D) of the or fog, an additional on-shore observer Kitsap Transit shall use soft start MMPA states that NMFS must set forth, will be positioned at the Bremerton techniques when impact pile driving. ‘‘requirements pertaining to the Marina and/or a monitor will patrol the Soft start requires contractors to provide monitoring and reporting of such monitoring zone in a boat. an initial set of strikes at reduced taking.’’ The MMPA implementing Monitoring of pile driving shall be energy, followed by a thirty-second regulations at 50 CFR 216.104(a)(13) conducted by qualified PSOs (see waiting period, then two subsequent indicate that requests for authorizations below), who shall have no other reduced energy strike sets. Soft start must include the suggested means of assigned tasks during monitoring shall be implemented at the start of each accomplishing the necessary monitoring periods. Kitsap Transit shall adhere to day’s impact pile driving and at any and reporting that will result in the following conditions when selecting time following cessation of impact pile increased knowledge of the species and observers: • driving for a period of thirty minutes or of the level of taking or impacts on Independent, dedicated PSOs shall longer. populations of marine mammals that are be used (i.e., not construction expected to be present in the proposed personnel). If a species for which authorization • has not been granted (including action area. Effective reporting is critical At least one PSO must have prior humpback whales, gray whales, and both to compliance as well as ensuring experience working as a marine killer whales), or a species for which that the most value is obtained from the mammal observer during construction required monitoring. activities. authorization has been granted but the • authorized takes are met, is observed Monitoring and reporting Other PSOs may substitute approaching or within the Level B requirements prescribed by NMFS education (degree in biological science Isopleth (Table 6 and 9), pile driving should contribute to improved or related field) or training for and removal activities must shut down understanding of one or more of the experience. • Where a team of three or more PSOs immediately using delay and shut-down following: • are required, a lead observer or procedures. Activities must not resume Occurrence of marine mammal monitoring coordinator shall be until the animal has been confirmed to species or stocks in the area in which designated. The lead observer must have have left the area or the observation take is anticipated (e.g., presence, prior experience working as a marine time period has elapsed. abundance, distribution, density). • Nature, scope, or context of likely mammal observer during construction. Kitsap Transit shall use a bubble marine mammal exposure to potential • The Kitsap Transit shall submit curtain during all impact pile driving. stressors/impacts (individual or PSO CVs for approval by NMFS. We note the estimated source levels cumulative, acute or chronic), through Kitsap Transit shall ensure that used to calculate Level A harassment better understanding of: (1) Action or observers have the following additional zones did not consider any reduction in environment (e.g., source qualifications: noise from use of this bubble curtain characterization, propagation, ambient • Ability to conduct field (i.e., the Level A harassment isopleths noise); (2) affected species (e.g., life observations and collect data according consider unattenuated impact pile history, dive patterns); (3) co-occurrence to assigned protocols. driving source levels). of marine mammal species with the • Experience or training in the field Kitsap Transit shall access the Orca action; or (4) biological or behavioral identification of marine mammals, Network website each morning prior to context of exposure (e.g., age, calving or including the identification of in-water construction activities and if feeding areas). behaviors. pile removal or installation ceases for • Individual marine mammal • Sufficient training, orientation, or more than two hours. If marine responses (behavioral or physiological) experience with the construction mammals for which take is not to acoustic stressors (acute, chronic, or operation to provide for personal safety authorized (e.g., killer whales, cumulative), other stressors, or during observations. humpback whales, gray whales) are cumulative impacts from multiple • Writing skills sufficient to prepare a observed and on a path towards the stressors. report of observations including but not Level B harassment zone, pile driving • How anticipated responses to limited to the number and species of shall be delayed until animals are stressors impact either: (1) Long-term marine mammals observed; dates and confirmed outside of and on a path fitness and survival of individual times when in-water construction away from the Level B harassment zone marine mammals; or (2) populations, activities were conducted; dates, times, or if one hour passes with no species, or stocks. and reason for implementation of subsequent sightings. • Effects on marine mammal habitat mitigation (or why mitigation was not Kitsap Transit shall implement the (e.g., marine mammal prey species, implemented when required); and use of best management practices (e.g., acoustic habitat, or other important marine mammal behavior. erosion and sediment control, spill physical components of marine • Ability to communicate orally, by prevention and control) to minimize mammal habitat). radio or in person, with project impacts to marine mammal habitat. • Mitigation and monitoring personnel to provide real-time Based on our evaluation of the effectiveness. information on marine mammals applicant’s proposed measures, NMFS For all pile driving activities, at least observed in the area as necessary. has preliminarily determined that the one protected species observer (PSOs) Kitsap Transit would also be required proposed mitigation measures provide shall be stationed at the on-shore to submit an annual report summarizing the means effecting the least practicable vantage point at the outer portion of the their monitoring efforts, number of impact on the affected species or stocks pier to be retained to monitor and animals taken, any implementation of and their habitat, paying particular implement shutdown or delay mitigation measures (e.g., shut downs)

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and abide by reporting requirements essentially eliminated through • The anticipated incidents of Level B contained within the draft IHA at the implementation of the planned harassment consist of, at worst, end of this document. mitigation measures—use of the bubble temporary modifications in behavior; curtain for impact driving steel piles, • Negligible Impact Analysis and There is no significant habitat soft start (for impact driving), and Determination within the industrialized project areas, shutdown zones. Impact driving, as including known areas or features of NMFS has defined negligible impact compared with vibratory driving, has special significance for foraging or as an impact resulting from the source characteristics (short, sharp reproduction; and specified activity that cannot be pulses with higher peak levels and • reasonably expected to, and is not The proposed mitigation measures much sharper rise time to reach those reduce the effects of the specified reasonably likely to, adversely affect the peaks) that are potentially injurious or species or stock through effects on activity to the level of least practicable more likely to produce severe adverse impact. annual rates of recruitment or survival behavioral reactions. Given sufficient (50 CFR 216.103). A negligible impact notice through use of soft start, marine Based on the analysis contained finding is based on the lack of likely mammals are expected to move away herein of the likely effects of the adverse effects on annual rates of from a sound source that is annoying specified activity on marine mammals recruitment or survival (i.e., population- prior to its becoming potentially and their habitat, and taking into level effects). An estimate of the number injurious or resulting in more severe consideration the implementation of the of takes alone is not enough information behavioral reactions. Environmental proposed monitoring and mitigation on which to base an impact conditions in inland waters are measures, NMFS preliminarily finds determination. In addition to expected to generally be good, with that the total marine mammal take from considering estimates of the number of calm sea states, and we expect the proposed activity will have a marine mammals that might be ‘‘taken’’ conditions would allow a high marine negligible impact on all affected marine through harassment, NMFS considers mammal detection capability, enabling a mammal species or stocks. other factors, such as the likely nature high rate of success in implementation Small Numbers of any responses (e.g., intensity, of shutdowns to avoid injury. duration), the context of any responses As noted above, only small numbers We anticipate individuals exposed to (e.g., critical reproductive time or of incidental take may be authorized pile driving noise generated at the location, migration), as well as effects under Section 101(a)(5)(D) of the MMPA Annapolis Ferry Terminal will, at most, on habitat, and the likely effectiveness for specified activities other than simply move away from the sound of the mitigation. We also assess the military readiness activities. The MMPA source and be temporarily displaced number, intensity, and context of does not define small numbers and so, from the areas of pile driving. The pile estimated takes by evaluating this in practice, where estimated numbers driving activities analyzed here are information relative to population are available, NMFS compares the similar to, or less impactful than, status. Consistent with the 1989 number of individuals taken to the most numerous other construction activities preamble for NMFS’s implementing appropriate estimation of abundance of conducted in the Puget Sound region, regulations (54 FR 40338; September 29, the relevant species or stock in our which have taken place with no known 1989), the impacts from other past and determination of whether an long-term adverse consequences from ongoing anthropogenic activities are authorization is limited to small behavioral harassment. No pupping or incorporated into this analysis via their numbers of marine mammals. breeding areas are present within the impacts on the environmental baseline Additionally, other qualitative factors action area. Further, animals are likely (e.g., as reflected in the regulatory status may be considered in the analysis, such somewhat habituated to noise- of the species, population size and as the temporal or spatial scale of the generating human activity given the growth rate where known, ongoing activities. sources of human-caused mortality, or proximity to Seattle-Bremerton and Port ambient noise levels). Orchard ferry lanes, recent construction We propose to authorize incidental Pile driving activities associated with at NBK Bremerton and the Manette take of four marine mammal stocks. The the Annapolis Ferry Terminal Project, as Bridge (both of which involve pile total amount of taking proposed for described previously, have the potential driving), and general recreational, authorization is less than 2 percent of to disturb or displace marine mammals. commercial and military vessel traffic. the stock of Steller sea lions, California Specifically, the specified activities may Monitoring reports from the Manette sea lions, and harbor porpoise and less result in take, in the form of Level B Bridge and NBK Bremerton demonstrate than 20 percent for harbor seals (see harassment (behavioral disturbance) no discernable individual or population Table X). We note that harbor seals takes only from underwater sounds generated level impacts from similar pile driving likely represent multiple exposures of from pile driving. Potential takes could activities. fewer individuals. The amount of take proposed is considered relatively small occur if individual marine mammals are In summary and as described above, present in the ensonified zone when percentages and we preliminarily find the following factors primarily support are small numbers of marine mammals pile driving is happening. No serious our preliminary determination that the injury or mortality would be expected relative to the estimated overall impacts resulting from this activity are population abundances for those stocks. even in the absence of the proposed not expected to adversely affect the mitigation measures. Further, while species or stock through effects on Based on the analysis contained Level A harassment potential is annual rates of recruitment or survival: herein of the proposed activity calculated, it is based on long exposure (including the proposed mitigation and • durations (6 hours of vibratory pile No mortality is anticipated or monitoring measures) and the driving and 2,000 pile strikes); authorized; anticipated take of marine mammals, therefore, the true Level A harassment • As a result of the nature of the NMFS preliminarily finds that small distances, if any, are likely closer than activity in concert with the planned numbers of marine mammals will be those provided in Table 6. Further, the mitigation requirements, injury is not taken relative to the population size of potential for injury is s is expected to be anticipated for any species; the affected species or stocks.

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Unmitigable Adverse Impact Analysis The species authorized for taking are pile driving activities at that location and Determination the harbor seal (Phoca vitulina shall be halted or delayed, respectively. There are no relevant subsistence uses richardii), Steller sea lion (Eumetopias If pile driving is halted or delayed due of the affected marine mammal stocks or jubatus monteriensis), California sea to the presence of a marine mammal, the activity may not resume or commence species implicated by this action. lion (Zalophus californianu), and harbor until either the animal has voluntarily Therefore, NMFS has preliminarily porpoise (Phocoena phocoena left and been visually confirmed beyond determined that the total taking of vomerina). The taking, by Level B harassment the shutdown zone and 15 minutes have affected species or stocks would not only, is limited to the species listed in passed without re-detection of the have an unmitigable adverse impact on Table 8. See Table 8 for numbers of take animal. Pile driving activities include the availability of such species or stocks authorized. the time to install or remove a single for taking for subsistence purposes. The taking by injury (Level A pile or series of piles, as long as the time Endangered Species Act (ESA) harassment), serious injury, or death of elapsed between uses of the pile driving any of the species listed in condition Section 7(a)(2) of the Endangered equipment is no more than thirty 3(b) of the Authorization or any taking minutes. Species Act of 1973 (ESA: 16 U.S.C. of any other species of marine mammal Kitsap Transit shall use soft start 1531 et seq.) requires that each Federal is prohibited and may result in the techniques when impact pile driving. agency insure that any action it modification, suspension, or revocation Soft start requires contractors to provide authorizes, funds, or carries out is not of this IHA. Kitsap Transit shall conduct an initial set of strikes at reduced likely to jeopardize the continued briefings between construction energy, followed by a thirty-second existence of any endangered or supervisors and crews, marine mammal waiting period, then two subsequent threatened species or result in the monitoring team, acoustical monitoring reduced energy strike sets. Soft start destruction or adverse modification of team, and Kitsap Transit staff prior to shall be implemented at the start of each designated critical habitat. To ensure the start of all pile driving, and when day’s impact pile driving and at any ESA compliance for the issuance of new personnel join the work, in order time following cessation of impact pile IHAs, NMFS consults internally, in this to explain responsibilities, driving for a period of thirty minutes or case with the West Coast Region communication procedures, marine longer. Protected Resources Division Office, mammal monitoring protocol, and Kitsap Transit shall access the Orca whenever we propose to authorize take operational procedures. Network website each morning prior to for endangered or threatened species. in-water construction activities and if No incidental take of ESA-listed Mitigation Measures pile removal or installation ceases for species is proposed for authorization or For in-water heavy machinery work more than two hours. If marine expected to result from this activity. On (e.g., barges, tug boats), a minimum 10 mammals for which take is not April 5, 2018, NMFS WCR issued a m shutdown zone shall be authorized (e.g., killer whales, Biological Opinion to the Federal implemented. If a marine mammal humpback whales, gray whales) are Transit Administration concluding the comes within 10 m of such operations, observed and on a path towards the project is not likely to adversely affect operations shall cease and vessels shall Level B harassment zone, pile driving Southern Resident killer whales and the reduce speed to the minimum level shall be delayed until animals are Western North Pacific and Central required to maintain steerage and safe confirmed outside of and on a path American humpback whale distinct working conditions. away from the Level B harassment zone population segments (DPSs). Therefore, For all pile driving activity, Kitsap or if one hour passes with no NMFS has determined that formal Transit shall implement shutdown subsequent sightings. consultation under section 7 of the ESA zones as described in Table 9. Kitsap Transit shall reduce the is not required for this action. For all pile driving activity, Kitsap transmission of impulsive noise into the Proposed Authorization Transit shall implement a minimum marine environment by using a bubble shutdown zone of a 10 m radius around curtain during all impact pile driving. As a result of these preliminary the pile. If a species for which authorization determinations, NMFS proposes to issue Pre-activity monitoring shall take has not been granted, or a species for an IHA to Kitsap Transit for conducting place from 30 minutes prior to initiation which authorization has been granted pile driving and removal in Puget of pile driving activity and post-activity but the authorized takes are met, is Sound over the course of 17 days, monitoring shall continue through 30 observed approaching or within the provided the previously mentioned minutes post-completion of pile driving Level B isopleth, pile driving and mitigation, monitoring, and reporting activity. Pile driving may commence at removal activities must shut down requirements are incorporated. This the end of the 30-minute pre-activity immediately using delay and shut-down section contains a draft of the IHA itself. monitoring period, provided observers procedures. Activities must not resume The wording contained in this section is have determined that the shutdown until the animal has been confirmed to proposed for inclusion in the IHA (if zone (see Table 6) is clear of marine have left the area or the observation issued). mammals, which includes delaying start time period has elapsed. This Incidental Harassment of pile driving activities if a marine Authorization (IHA) is valid for a period mammal is sighted in the shutdown Monitoring and Reporting Measures of one year from the date of issuance. zone. Monitoring of pile driving shall be This IHA is valid only for pile driving A determination that the shutdown conducted by qualified PSOs (see associated with the Annapolis Ferry zone is clear must be made during a below), who shall have no other Dock Project, Puget Sound. period of good visibility (i.e., the entire assigned tasks during monitoring A copy of this IHA must be in the shutdown zone and surrounding waters periods. possession of Kitsap Transit, its must be visible to the naked eye). For all pile driving activities, at least designees, and work crew personnel If a marine mammal approaches or one protected species observer (PSOs) operating under the authority of this enters the shutdown zone during shall be stationed at the on-shore IHA. activities or pre-activity monitoring, all vantage point at the outer portion of the

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pier to be retained to monitor and The report must include the following the species or stock of affected marine implement shutdown or delay information: mammals. procedures, when applicable, through Time and date of the incident; Renewals—On a case-by-case basis, communication with the equipment Description of the incident; NMFS may issue a second one-year IHA operator. Environmental conditions (e.g., wind without additional notice when (1) If water conditions exceed a Beaufort speed and direction, Beaufort sea state, another year of identical or nearly level 2, or if visibility is limited by rain cloud cover, and visibility); identical activities as described in the or fog, an additional on-shore observer Description of all marine mammal Specified Activities section is planned will be positioned at the Bremerton observations and active sound source or (2) the activities would not be Marina and/or a monitor will patrol the use in the 24 hours preceding the completed by the time the IHA expires monitoring zone in a boat. incident; and a second IHA would allow for The PSO shall access the Orca Species identification or description completion of the activities beyond that Network each morning prior to in-water of the animal(s) involved; described in the Dates and Duration construction activities that may produce Fate of the animal(s); and section, provided all of the following noise levels above the disturbance Photographs or video footage of the conditions are met: threshold and if pile removal or animal(s). A request for renewal is received no installation ceases for more than two Activities shall not resume until later than 60 days prior to expiration of hours. NMFS is able to review the the current IHA. Kitsap Transit shall adhere to the circumstances of the prohibited take. The request for renewal must include following conditions when selecting NMFS will work with Kitsap Transit to the following: observers: determine what measures are necessary An explanation that the activities to Independent PSOs shall be used (i.e., to minimize the likelihood of further be conducted beyond the initial dates not construction personnel). prohibited take and ensure MMPA either are identical to the previously The PSO must have prior experience compliance. Kitsap Transit may not analyzed activities or include changes working as a marine mammal observer resume their activities until notified by so minor (e.g., reduction in pile size) during construction activities. NMFS. that the changes do not affect the Kitsap Transit shall submit PSO CVs In the event Kitsap Transit discovers previous analyses, take estimates, or for approval by NMFS. an injured or dead marine mammal, and mitigation and monitoring Kitsap Transit shall ensure that the lead observer determines that the requirements. observers have the following additional cause of the injury or death is unknown A preliminary monitoring report qualifications: and the death is relatively recent (e.g., showing the results of the required Ability to conduct field observations in less than a moderate state of monitoring to date and an explanation and collect data according to assigned decomposition), Kitsap Transit shall showing that the monitoring results do protocols. immediately report the incident to the not indicate impacts of a scale or nature Experience or training in the field Office of Protected Resources, NMFS, not previously analyzed or authorized. identification of marine mammals, and the West Coast Region Stranding Upon review of the request for including the identification of Coordinator, NMFS. renewal, the status of the affected behaviors. The report must include the same species or stocks, and any other Sufficient training, orientation, or information identified in 6(b)(i) of this pertinent information, NMFS experience with the construction IHA. Activities may continue while determines that there are no more than operation to provide for personal safety NMFS reviews the circumstances of the minor changes in the activities, the during observations. incident. NMFS will work with Kitsap mitigation and monitoring measures Writing skills sufficient to prepare a Transit to determine whether additional remain the same and appropriate, and report of observations including but not mitigation measures or modifications to the original findings remain valid. limited to the number and species of the activities are appropriate. Request for Public Comments marine mammals observed; dates and In the event that Kitsap Transit times when in-water construction discovers an injured or dead marine We request comment on our analyses, activities were conducted; dates, times, mammal, and the lead observer the proposed authorization, and any and reason for implementation of determines that the injury or death is other aspect of this Notice of Proposed mitigation (or why mitigation was not not associated with or related to the IHA for Kitsap Transit’s proposed implemented when required); and activities authorized in the IHA (e.g., Annapolis Ferry Terminal upgrades. We marine mammal behavior. previously wounded animal, carcass also request comment on the potential Ability to communicate orally, by with moderate to advanced for renewal of this proposed IHA as radio or in person, with project decomposition, or scavenger damage), described in the paragraph below. personnel to provide real-time Kitsap Transit shall report the incident Please include with your comments any information on marine mammals to the Office of Protected Resources, supporting data or literature citations to observed in the area as necessary. NMFS, and the West Coast Region help inform our final decision on the In the unanticipated event that the Stranding Coordinator, NMFS, within request for MMPA authorization. specified activity clearly causes the take 24 hours of the discovery. Kitsap Transit On a case-by-case basis, NMFS may of a marine mammal in a manner shall provide photographs or video issue a second one-year IHA without prohibited by this IHA, such as an footage or other documentation of the additional notice when (1) another year serious injury, or mortality, Kitsap stranded animal sighting to NMFS. of identical or nearly identical activities Transit shall immediately cease the This Authorization may be modified, as described in the Specified Activities specified activities and report the suspended or withdrawn if the holder section is planned or (2) the activities incident to the Office of Protected fails to abide by the conditions would not be completed by the time the Resources (301–427–8401), NMFS, and prescribed herein, or if NMFS IHA expires and a second IHA would the West Coast Region Stranding determines the authorized taking is allow for completion of the activities Coordinator (1–866–767–6114), NMFS. having more than a negligible impact on beyond that described in the Dates and

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Duration section, provided all of the application, please refer to our Common Evidence-based programs and practices following conditions are met: Instructions for Applicants to (EBPPs) designed to foster social and • A request for renewal is received no Department of Education Discretionary emotional learning (SEL) are associated later than 60 days prior to expiration of Grant Programs, published in the with positive outcomes ranging from the current IHA. Federal Register on February 12, 2018 better test scores and higher graduation • The request for renewal must (83 FR 6003) and available at rates to improved social behavior.4 include the following: www.gpo.gov/fdsys/pkg/FR-2018-02-12/ A recent meta-study of 82 school- (1) An explanation that the activities pdf/2018-02558.pdf. based, universal SEL interventions to be conducted beyond the initial dates FOR FURTHER INFORMATION CONTACT: Eve involving nearly 100,000 students found either are identical to the previously Birge, U.S. Department of Education, that SEL benefits youth development, analyzed activities or include changes 400 Maryland Avenue SW, Room including improved social and so minor (e.g., reduction in pile size) 3C147, Washington, DC 20202–6450. emotional skills, attitudes, indicators of that the changes do not affect the well-being, and increased graduation Telephone: (202) 453–6717. Email: 5 previous analyses, take estimates, or [email protected]. rates. Benefits were similar regardless mitigation and monitoring If you use a telecommunications of students’ race, socioeconomic requirements. device for the deaf (TDD) or a text background, or school location. Another study analyzed the economic (2) A preliminary monitoring report telephone (TTY), call the Federal Relay impact of six SEL programs and found showing the results of the required Service (FRS), toll free, at 1–800–877– that on average, every dollar invested monitoring to date and an explanation 8339. showing that the monitoring results do yields $11 in long-term benefits, ranging not indicate impacts of a scale or nature SUPPLEMENTARY INFORMATION: from improved mental and physical health, reduced juvenile crime, and not previously analyzed or authorized. Full Text of Announcement • Upon review of the request for higher lifetime earnings.6 renewal, the status of the affected I. Funding Opportunity Description But implementation is not always species or stocks, and any other Purpose of Program: The purpose of consistent. When there is not adequate pertinent information, NMFS the Center is to provide technical training or understanding by determines that there are no more than assistance to support States and districts implementers, assessment of efficacy, or minor changes in the activities, the in the implementation of social and accountability, it can jeopardize positive 7 mitigation and monitoring measures emotional learning evidence-based (as student impacts. The technical remain the same and appropriate, and defined in this notice) programs and assistance described in this notice will the original findings remain valid. practices. The Center will enhance the support States and districts by enhancing their capacity to successfully Dated: May 10, 2018. capacity of (1) State educational agencies (SEAs) to support their local implement EBPPs. Elaine T. Saiz, For the purpose of this notice inviting educational agencies (LEAs) and (2) Acting Deputy Director, Office of Protected applications, SEL includes developing LEAs to support their schools. Resources, National Marine Fisheries Service. and maintaining positive relationships Background: The Center will be [FR Doc. 2018–10385 Filed 5–15–18; 8:45 am] with peers and adults; using self- supported by funds reserved for Title BILLING CODE 3510–22–P control; building social skills, including IV, Part A technical assistance and recognizing and managing emotions in capacity building, pursuant to section oneself; understanding others’ emotions 4103(a)(3) of the Elementary and and perspectives; making responsible DEPARTMENT OF EDUCATION Secondary Education Act of 1965 (ESEA).1 Applications for New Award; Center To interventions. Child Development, January/ Improve Social and Emotional Positive social and emotional skills February 2011, Volume 82, Number 1, 405–432. Retrieved at: www.casel.org/wp-content/uploads/ Learning and School Safety— and abilities help students attain and apply knowledge and attitudes that 2016/06/meta-analysis-child-development-1.pdf. Cooperative Agreement 4 enhance personal development, social Payton, J., Weissberg, R.P., Durlak, J.A., Dymnicki, A.B., Taylor, R.D., Schellinger, K.B., & 2 AGENCY: Office of Elementary and relationships, and ethical behavior. Pachan, M. (2008). The positive impact of social Secondary Education, Department of These skills and abilities help inform and emotional learning for kindergarten to eighth- Education. how students relate to each other and grade students: Findings from three scientific reviews. Chicago, IL: Collaborative for Academic, ACTION: Notice. adults. Social, and Emotional Learning. Retrieved at: Research shows that how students www.casel.org/wp-content/uploads/2016/08/PDF-4- SUMMARY: The Department of Education interact with their peers and teachers, the-positive-impact-of-social-and-emotional- (Department) is issuing a notice inviting approach their schoolwork, and form learning-for-kindergarten-to-eighth-grade-students- applications for a new award for fiscal executive-summary.pdf. beliefs about learning has implications 5 3 Taylor, R.D., Oberle, E., Durlak, J.A., & year (FY) 2018 for the Center To on how they perform in the classroom. Weissberg, R.P. (2017). Promoting positive youth Improve Social and Emotional Learning development through school-based social and and School Safety (Center)— 1 In December 2015, Congress enacted the Every emotional learning interventions: A meta-analysis Cooperative Agreement, Catalog of Student Succeeds Act (ESSA), which reauthorized of follow-up effects. Child Development, Federal Domestic Assistance (CFDA) the ESEA. Therefore, for purposes of this notice, 88(4):1156–1171. doi: 10.1111/cdev.12864. unless otherwise indicated, all references to the 6 Belfield, C., Bowden, B., Klapp, A., Levin, H., number 84.424B. ‘‘ESEA’’ are to the ‘‘ESEA, as amended by the Shand, R., & Zander, S. (2015). The Economic Value DATES: ESSA.’’ of Social and Emotional Learning. New York, NY: Applications Available: May 16, 2018. 2 Weissberg, R.P., & O’Brien, M.U. (2004). What Center for Benefit-Cost Studies in Education. works in school-based social and emotional Retrieved at: http://cbcse.org/wordpress/wp- Deadline for Transmittal of learning programs for positive youth development. content/uploads/2015/02/SEL-Revised.pdf. Applications: July 2, 2018. The ANNALS of the American Academy of Political 7 Evans, R., Murphy, S., & Scourfield, J. Deadline for Intergovernmental and Social Science, 591(1), 86–97. Implementation of a school-based social and Review: August 29, 2018. 3 Durlak, J.A., Weissberg, R.P., Dymnicki, A.B., emotional learning intervention: Understanding Taylor, R.D. & Schellinger, K.B. (2011). The impact diffusion processes within complex systems. ADDRESSES: For the addresses for of enhancing students’ social and emotional Prevention Science. 2015;16(5):754–764. obtaining and submitting an learning: A meta-analysis of school-based universal doi:10.1007/s11121–015–0552–0.

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decisions (i.e., ‘‘making good choices’’); have SEL programs for students.11 grant competition and any subsequent working effectively in cooperative Increasingly, schools across the country year in which we make awards from the groups; coping with frustration; reading are implementing SEL 12 as there is list of unfunded applications from this social cues; resolving interpersonal increasing awareness about how to competition, in accordance with section conflicts; demonstrating compassion support students experiencing violence 437(d)(1) of the General Education and empathy toward others; exercising in their neighborhoods and abuse in Provisions Act (GEPA), 20 U.S.C. persistence; building resilience; and their homes, drug and alcohol 1232(d)(1). developing other SEL skills and addiction, and pressure to succeed in Absolute Priority: This priority is an abilities. school. We anticipate that there will be absolute priority. Under 34 CFR Under the ESEA, States have an an increased need for technical 75.105(c)(3), we consider only opportunity to broaden their measures assistance and training in order to applications that meet this priority. of student success to include SEL implement programs effectively and This priority is: measures. LEAs that receive funds with fidelity. under the ESEA Title IV–A Student The Aspen Institute’s National Supporting the Implementation of Support and Academic Enrichment Commission on Social, Emotional, and Social and Emotional Learning (SSAE) Grants program may, under Academic Development released a Evidence-Based Programs and Practices section 4107(a)(3)(J) of the ESEA, use report in January 2018, How learning The purpose of the Center is to those funds for SEL activities, including happens: Supporting students’ social, provide technical assistance to support interventions that build resilience, self- emotional, and academic development, implementation of social and emotional control, empathy, persistence, and other in which they demonstrate that SEL learning (SEL) evidence-based programs social and behavioral skills. The programming and skill building are and practices (EBPPs) by enhancing the following excerpt is taken from the inextricably linked to improved capacity of (1) SEAs to support their guidance published by the Department academic outcomes and student LEAs and (2) LEAs to support their on the SSAE grant program (https:// success; particularly salient is the schools. www2.ed.gov/policy/elsec/leg/essa/ assertion that professional development To meet this priority, applicants must essassaegrantguid10212016.pdf): and training are essential in order for submit a plan demonstrating that the ‘‘Extensive research, as well as potential gains to be realized.13 This Center will be designed to— educators’ own experiences, shows that lends further support to the (a) Improve skills of SEA personnel school-based SEL programs play an Department’s decision to launch a to— important role in fostering healthy Center to Improve Social and Emotional (1) Promote SEL EBPPs through relationships and increasing academic Learning and School Safety. policies, funding mechanisms, and and career success.8 A growing body of There are many approaches to interagency coordination; research in this field is demonstrating improving SEL skills and abilities. In (2) Collect and analyze data to inform that various tools and practices can order to meet the unique needs and decision-making regarding enhance students’ social and emotional preferences of States and districts, the implementation of SEL EBPPs; and development.9 For example, Center must be able to provide technical (3) Develop the capacity, implementing practices that support assistance on a wide array of partnerships, and proficiency needed to students’ sense of belonging and value approaches. The Center must be able to provide expert technical assistance can increase students’ academic identify core features of SEL and the regarding implementation of SEL success.’’ 10 components necessary to support EBPPs. State-level policies are being implementation so that it can support (b) Improve skills of LEA personnel developed that reflect these States and districts with a variety of to— competencies, their expansion, and EBPPs that fit their local contexts. This (1) Implement SEL EBPPs; and measurement. Forty-five out of fifty-six flexibility and the capacity to (2) Collect and use data to inform ESSA State plans submitted to the accommodate a range of needs and decision-making regarding Department included SEL programming requests can be accomplished, in part, implementation of SEL EBPPs. and skill building. Recently released by reviewing the research and evidence (c) Establish a cadre of subject matter findings of the 2015–2016 School and developing a common experts to provide training to SEAs and Survey on Crime and Safety revealed understanding of the tenets or LEAs on how to implement a wide array that 66.3 percent of all public schools foundations on which this body of work of SEL EBPPs. and assistance can be built. (d) Develop reliable and valid tools 8 Durlak, J.A., Weissberg, R.P., Dymnicki, A.B., Priorities: This notice contains one and processes for measuring outcomes Taylor, R.D., & Schellinger, K.B. (2011). The impact absolute priority. We are establishing and evaluating the fidelity of the of enhancing students’ social and emotional the absolute priority for the FY 2018 implementation of SEL EBPPs. learning: A meta-analysis of school-based universal interventions. Child Development, 82(1), pp. 405– (e) Coordinate with other federally 432. Retrieved at: www.casel.org/wp-content/ 11 Diliberti, M., Jackson, M., and Kemp, J. (2017). funded technical assistance centers, uploads/2016/06/meta-analysis-child-development- Crime, Violence, Discipline, and Safety in U.S. such as the Department’s Office of Safe 1.pdf. Public Schools: Findings from the School Survey on and Healthy Students’ (OSHS) National 9 CASEL Guide to Effective Social and Emotional Crime and Safety: 2015–2016 (NCES 2017–122). Learning Programs (www.casel.org/guide/). U.S. Department of Education, National Center for Technical Assistance Center for the 10 Blackwell, L.A., Trzesniewski, K.H., & Dweck, Education Statistics. Washington, DC. Retrieved at: Education of Neglected or Delinquent C.S. (2007). Implicit theories of intelligence and http://nces.ed.gov/pubsearch. Children and Youth, the Department’s achievement across the junior high school 12 Wanless, S.B. & Domitrovich, C.E. Prevention Office of Special Education Programs’ transition: A longitudinal study and an Science (2015) 16: 1037. Retrieved at: https:// intervention. Child Development, 78, 246–263. doi.org/10.1007/s11121-015-0612-5. (OSEP) and OSHS’ Positive Behavioral Retrieved at: mtoliveboe.org/cmsAdmin/uploads/ 13 The Aspen Institute National Commission on Interventions and Supports OSEP blackwell-theories-of-intelligence-child-dev- Social, Emotional, and Academic Development. Technical Assistance Center, and 2007.pdf. Cohen, G.L., Garcia, J., Purdie-Vaugns, V., How Learning Happens: Supporting Students’ OSEP’s Technical Assistance and Apfel, N., & Brzustoski, P. (2009). Recursive Social, Emotional, and Academic Development. processes in self-affirmation: Intervening to close Retrieved at https://assets.aspeninstitute.org/ Dissemination to Improve Services and the minority achievement gap. Science, 324, 400– content/uploads/2018/01/2017_Aspen_ Results for Children with Disabilities— 403. InterimReport_Update2.pdf. Technical Assistance Center on Positive

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Social, Emotional, and Behavioral seek to meet during the course of a carry out the activities described in this Outcomes for Young Children with, and project or as a result of a project. notice. at Risk for, Developmental Delays or Waiver of Proposed Rulemaking: 2. Cost Sharing or Matching: This Disabilities. Under the Administrative Procedure Act program does not require cost sharing or Fourth and fifth years of the project: (5 U.S.C. 553), the Department generally matching. In deciding whether to continue funding offers interested parties the opportunity 3. Subgrantees: Under 34 CFR the project for the fourth and fifth years, to comment on proposed priorities and 75.708(b) and (c) a grantee under this the Secretary will consider the application requirements. Section competition may award subgrants—to requirements of 34 CFR 75.253(a), as 437(d)(1) of GEPA, however, allows the directly carry out project activities well as: (i) The recommendation of a Secretary to exempt from rulemaking described in its application—to the review team consisting of experts requirements, regulations governing the following types of entities: Local selected by the Secretary and convening first grant competition under a new or educational agencies, State educational for a one-day intensive review during substantially revised program authority. agencies, institutions of higher the last half of the second year of the This is the first grant competition for education, and nonprofit organizations. project period; (ii) the timeliness with this program under Title IV, Part A The grantee may award subgrants to which, and how well, the requirements (section 4103 of the ESEA) and therefore entities it has identified in an approved of the negotiated cooperative agreement qualifies for this exemption. In order to application or that it selects through a have been or are being met by the ensure timely grant awards, the competition under procedures project; and (iii) the quality, relevance, Secretary has decided to forgo public established by the grantee. and usefulness of the project’s products comment on the absolute priority and 4. Participation of Faith-based and services and the extent to which the application requirements under section Organizations: Faith-based project’s products and services are 437(d)(1) of GEPA. This priority and the organizations are eligible to apply for aligned with the project’s objectives and application requirements will apply to grants under this competition provided likely to result in the project achieving the FY 2018 grant competition and any they meet all statutory and regulatory its intended outcomes. subsequent year in which we make requirements. Definitions: The following definitions awards from the list of unfunded IV. Application and Submission apply to this competition. The applications from this competition. Information definition of ‘‘evidence-based’’ is from Program Authority: This grant section 8101 of the ESEA. The program is authorized by Title IV, Part 1. Application Submission definitions of ‘‘baseline,’’ ‘‘performance A, Subpart 1 (4103(3), 20 U.S.C. Instructions: For information on how to measure,’’ and ‘‘performance target’’ are 7113(3)). submit an application please refer to our from 34 CFR 77.1. Applicable Regulations: (a) The Common Instructions for Applicants to Evidence-based, when used with Education Department General Department of Education Discretionary respect to a State, local educational Administrative Regulations (EDGAR) in Grant Programs, published in the agency, or school activity, means an 34 CFR parts, 75, 77, 79, 81, 82, 84, 86, Federal Register on February 12, 2018 activity, strategy, or intervention that— 97, 98, and 99. (b) The Office of (83 FR 6003) and available at (i) Demonstrates a statistically Management and Budget Guidelines to www.gpo.gov/fdsys/pkg/FR-2018-02-12/ significant effect on improving student Agencies on Governmentwide pdf/2018-02558.pdf. outcomes or other relevant outcomes Debarment and Suspension 2. Intergovernmental Review: This based on— (Nonprocurement) in 2 CFR part 180, as program is subject to Executive Order (I) Strong evidence from at least one adopted and amended as regulations of 12372 and the regulations in 34 CFR well-designed and well-implemented the Department in 2 CFR part 3485. (c) part 79. Information about experimental study; The Uniform Administrative Intergovernmental Review of Federal (II) Moderate evidence from at least Requirements, Cost Principles, and Programs under Executive Order 12372 one well-designed and well- Audit Requirements for Federal Awards is in the application package for this implemented quasi-experimental study; in 2 CFR part 200, as adopted and program. 3. Funding Restrictions: We reference or amended as regulations of the regulations outlining funding (III) Promising evidence from at least Department in 2 CFR part 3474. (d) The restrictions in the Applicable one well-designed and well- regulations in 34 CFR part 299. implemented correlational study with Regulations section of this notice. II. Award Information statistical controls for selection bias; or V. Application Review Information (ii)(I) Demonstrates a rationale based Type of Award: Cooperative 1. Selection Criteria and Application on high-quality research findings or agreement. Requirements: The selection criteria for positive evaluation that such activity, Estimated Available Funds: this competition are from 34 CFR strategy, or intervention is likely to $1,000,000. 75.210. We are establishing the improve student outcomes or other Estimated Award: $1,000,000 per year application requirements accompanying relevant outcomes; and for up to 5 years. the selection criteria for the FY 2018 (II) Includes ongoing efforts to Estimated Number of Awards: 1. examine the effects of such activity, grant competition and any subsequent strategy, or intervention. Note: The Department is not bound by any year in which we make awards from the Baseline means the starting point estimates in this notice. list of unfunded applications from this from which performance is measured Project Period: Up to 60 months. competition, in accordance with section and targets are set. 437(d)(1) of GEPA, 20 U.S.C. 1232(d)(1). Performance measure means any III. Eligibility Information The maximum score for addressing all quantitative indicator, statistic, or 1. Eligible Applicants: Public agencies of the selection criteria is 100 points. metric used to gauge program or project and private nonprofit or for-profit The points assigned to each criterion are performance. organizations, including institutions of indicated in parentheses following the Performance target means a level of higher education, with the criterion. Non-Federal peer reviewers performance that an applicant would demonstrated ability and capacity to will review each application and score

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each program narrative against the technology, as appropriate, and the project outcomes; (ii) how the proposed following selection criteria: leveraging of non-project resources. (15 project will collaborate with other (a) Significance of the Project (up to points) related centers supported by the 30 points) In addressing this criterion, an Department; (iii) with whom the The Secretary considers the applicant must describe, in the narrative proposed project will collaborate and significance of the proposed project. In section of the application under the intended outcomes of this determining the significance of the ‘‘Quality of Project Services,’’ how the collaboration; and (iv) how the proposed project, the Secretary proposed project will— proposed project will use non-project considers the following factors: (1) Ensure equal access and treatment resources effectively to achieve the (i) The extent to which the proposed for members of groups that have intended project outcomes; and project is likely to build local capacity traditionally been underrepresented (6) Maintain a website that meets to provide, improve, or expand services based on race, color, national origin, government or industry-recognized that address the needs of the target linguistic diversity, gender, age, or standards for accessibility. population. (10 points) disability; in addition to vulnerable (c) Quality of the Evaluation Plan (up (ii) The importance or magnitude of populations such as students that have to 10 points) the results or outcomes likely to be had contact with the child welfare or The Secretary considers the quality of attained by the proposed project. (10 juvenile justice systems or who have the evaluation to be conducted of the points) experienced homelessness. For proposed project. In determining the (iii) The likelihood that the proposed example, describe the process that will quality of the evaluation, the Secretary project will result in system change or be used to (i) identify the needs of the considers the following factors: improvement. (10 points) intended recipients for technical (i) The extent to which the methods In addressing this criterion, an assistance and information; and (ii) of evaluation are thorough, feasible, and applicant must describe, in the narrative ensure that services and products meet appropriate to the goals, objectives, and section of the application under the needs of the intended recipients; outcomes of the proposed project. (5 (2) Achieve its goals, objectives, and ‘‘Significance of the Project,’’ how the points) intended outcomes. Evidence to address proposed project will— (ii) The extent to which the methods (1) Address the current and emerging this includes (i) measurable intended of evaluation will provide performance needs of SEAs and LEAs to implement, project outcomes; and (ii) the theory of feedback and permit periodic scale-up, and sustain SEL EBPPs as action on how the proposed project will assessment of progress toward achieving evidenced by the ability and capacity to achieve the intended project outcomes; intended outcomes. (5 points) (i) present applicable national, State, (3) Use a conceptual framework to In addressing this criterion, an regional, or local data demonstrating the guide the development of project plans applicant must describe, in the narrative needs of SEAs and LEAs to implement, and activities, describing any section of the application under scale-up, and sustain SEL EBPPs; and underlying concepts, assumptions, ‘‘Quality of the Evaluation Plan,’’ how— (ii) demonstrate knowledge of current expectations, beliefs, or theories, as well (1) The proposed project will collect policy initiatives and issues relating to as the presumed relationship or linkages and analyze data related to specific and implementing, scaling, and sustaining among these variables, and any measurable goals, objectives, and SEL EBPPs within the context of school empirical support for this framework; intended outcomes of the project. improvement efforts; and (4) Develop products and provide (2) Result in (i) improved quality of services that are of sufficient quality, Evidence to address this includes (i) SEL programming implementation; and intensity, and duration to achieve the proposed evaluation methodologies, (ii) increased scale-up of program intended outcomes of the proposed including instruments, data collection implementation in LEAs and SEAs over project. For example, describe (i) methods, and possible analyses; (ii) the course of the project period. proposed activities to identify, develop, proposed standards or targets for (b) Quality of Project Services (up to or expand the knowledge base of determining effectiveness; and (iii) 35 points) researchers, trainers, technical proposed methods for collecting data on The Secretary considers the quality of assistance providers, and practitioners; implementation supports and fidelity of the services to be provided by the (ii) proposed approach to general implementation; proposed project. technical assistance, including the (2) The proposed project will use the (i) In determining the quality of the intended recipients of the products and evaluation results to examine the services to be provided by the proposed services under this approach; (iii) effectiveness of the project’s project, the Secretary considers the proposed approach to targeted technical implementation strategies and the quality and sufficiency of strategies for assistance, including the intended progress toward achieving intended ensuring equal access and treatment for recipients of the products and services, outcomes; eligible project participants who are and its proposed approach to measure (3) The methods of evaluation will members of groups that have the readiness of potential recipients to produce quantitative and qualitative traditionally been underrepresented work with the project, including their data that demonstrate whether the based on race, color, national origin, infrastructure, available resources, and project achieved the intended outcomes; gender, age, or disability. (5 points) ability to build capacity; and (iv) and In addition, the Secretary considers proposed approach to intensive, (4) The proposed project will identify the following factors: sustained technical assistance, key components (i.e., the active (ii) The extent to which the goals, including the intended recipients of the ‘‘ingredients’’ that are hypothesized to objectives, and outcomes to be achieved products and services under this be critical to achieving the relevant by the proposed project are clearly approach; outcomes) through the depiction of a specified and measurable. (15 points) (5) Develop products and implement logic model that lays out the goals, (iii) The extent to which the technical services to maximize the project’s activities, outputs, and outcomes of the assistance services to be provided by the efficiency. For example, describe (i) proposed project. proposed project involve the use of how the proposed project will use (d) Quality of the Management Plan efficient strategies, including the use of technology to achieve the intended (up to 25 points)

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The Secretary considers the quality of 75.217(d)(3), the past performance of the plus all the other Federal funds you the management plan for the proposed applicant in carrying out a previous receive exceed $10,000,000. project. In determining the quality of the award, such as the applicant’s use of VI. Award Administration Information management plan for the proposed funds, achievement of project project, the Secretary considers the objectives, and compliance with grant 1. Award Notices: If your application following factors: conditions. The Secretary may also is successful, we notify your U.S. (i) The adequacy of the management consider whether the applicant failed to Representative and U.S. Senators and plan to achieve the objectives of the submit a timely performance report or send you a Grant Award Notification proposed project on time and within submitted a report of unacceptable (GAN); or we may send you an email budget, including clearly defined quality. containing a link to access an electronic responsibilities, timelines, and In addition, in making a competitive version of your GAN. We may notify milestones for accomplishing project grant award, the Secretary requires you informally, also. tasks. (10 points) various assurances including those If your application is not evaluated or (ii) The adequacy of mechanisms for applicable to Federal civil rights laws not selected for funding, we notify you. 2. Administrative and National Policy ensuring high-quality products and that prohibit discrimination in programs Requirements: We identify services from the proposed project. (10 or activities receiving Federal financial administrative and national policy points) assistance from the Department (34 CFR requirements in the application package (iii) How the applicant will ensure 100.4, 104.5, 106.4, 108.8, and 110.23). and reference these and other that a diversity of perspectives are 3. Risk Assessment and Specific brought to bear in the operation of the requirements in the Applicable Conditions: Consistent with 2 CFR Regulations section of this notice. proposed project, including those of 200.205, before awarding grants under parents, teachers, the business We reference the regulations outlining this competition the Department the terms and conditions of an award in community, a variety of disciplinary conducts a review of the risks posed by and professional fields, recipients or the Applicable Regulations section of applicants. Under 2 CFR 3474.10, the this notice and include these and other beneficiaries of services, or others, as Secretary may impose specific appropriate. (5 points) specific conditions in the GAN. The conditions and, in appropriate GAN also incorporates your approved In addressing this criterion, an circumstances, high-risk conditions on a applicant must describe, in the narrative application as part of your binding grant if the applicant or grantee is not commitments under the grant. section of the application under financially stable; has a history of ‘‘Quality of the Management Plan,’’ 3. Open Licensing Requirements: unsatisfactory performance; has a Unless an exception applies, if you are how— financial or other management system (1) The proposed management plan awarded a grant under this competition, that does not meet the standards in 2 will ensure that the project’s intended you will be required to openly license CFR part 200, subpart D; has not outcomes will be achieved on time and to the public grant deliverables created fulfilled the conditions of a prior grant; within budget. For example, clearly in whole, or in part, with Department or is otherwise not responsible. define and describe (i) responsibilities grant funds. When the deliverable 4. Integrity and Performance System: for key project personnel, consultants, consists of modifications to pre-existing If you are selected under this and subcontractors, as appropriate; and works, the license extends only to those competition to receive an award that (ii) timelines and milestones for modifications that can be separately over the course of the project period accomplishing the project tasks, identified and only to the extent that may exceed the simplified acquisition recognizing the proposed project period open licensing is permitted under the threshold (currently $150,000), under 2 spans up to 60 months; terms of any licenses or other legal (2) Key project personnel and any CFR 200.205(a)(2) we must make a restrictions on the use of pre-existing consultants and subcontractors will be judgment about your integrity, business works. Additionally, a grantee or allocated to the project and demonstrate ethics, and record of performance under subgrantee that is awarded competitive the appropriateness and adequacy of Federal awards—that is, the risk posed grant funds must have a plan to these time allocations to achieve the by you as an applicant—before we make disseminate these public grant project’s intended outcomes; an award. In doing so, we must consider deliverables. This dissemination plan (3) The proposed management plan any information about you that is in the can be developed and submitted after will ensure that the products and integrity and performance system your application has been reviewed and services provided are of high quality, (currently referred to as the Federal selected for funding. For additional including the method and regularity by Awardee Performance and Integrity information on the open licensing which quantitative data will be Information System (FAPIIS)), requirements please refer to 2 CFR collected on the scope and frequency of accessible through the System for 3474.20(c). product use and the role(s) of users; Award Management. You may review 4. Reporting: (a) If you apply for a (4) The proposed project will benefit and comment on any information about grant under this competition, you must from a diversity of perspectives, yourself that a Federal agency ensure that you have in place the including families, educators, technical previously entered and that is currently necessary processes and systems to assistance providers, researchers, and in FAPIIS. comply with the reporting requirements policy makers, among others, in its Please note that, if the total value of in 2 CFR part 170 should you receive development and operation; and your currently active grants, cooperative funding under the competition. This (5) The proposed costs are reasonable agreements, and procurement contracts does not apply if you have an exception in relation to the anticipated results and from the Federal Government exceeds under 2 CFR 170.110(b). benefits. $10,000,000, the reporting requirements (b) At the end of your project period, 2. Review and Selection Process: We in 2 CFR part 200, Appendix XII, you must submit a final performance remind potential applicants that in require you to report certain integrity report, including financial information, reviewing applications in any information to FAPIIS semiannually. as directed by the Secretary. If you discretionary grant competition, the Please review the requirements in 2 CFR receive a multiyear award, you must Secretary may consider, under 34 CFR part 200, Appendix XII, if this grant submit an annual performance report

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that provides the most current The grantee must submit an annual Dated: May 11, 2018. performance and financial expenditure performance report and final Jason Botel, information as directed by the Secretary performance report with information Principal Deputy Assistant Secretary, under 34 CFR 75.118. The Secretary that is responsive to the performance Delegated the Authority to Perform the may also require more frequent measures. The Department will consider Functions and Duties of the Assistant performance reports under 34 CFR these data in making annual Secretary of Elementary and Secondary 75.720(c). For specific requirements on continuation awards. Education. reporting, please go to www.ed.gov/ Consistent with 34 CFR 75.591, the [FR Doc. 2018–10474 Filed 5–15–18; 8:45 am] fund/grant/apply/appforms/ grantee funded under this program shall BILLING CODE 4000–01–P appforms.html. comply with the requirements of any 5. Performance Measures: evaluation of the program conducted by (a) Program performance measures. the Department or an evaluator selected DEPARTMENT OF EDUCATION The Department has established the by the Department. Applications for New Awards; following performance measures for 6. Continuation Awards: In making a Fulbright-Hays Group Projects Abroad assessing the effectiveness of the Center continuation award under 34 CFR Program to Improve Social and Emotional 75.253, the Secretary considers, among Learning and School Safety— other things: Whether a grantee has AGENCY: Office of Postsecondary Cooperative Agreement: made substantial progress in achieving Education, Department of Education. • the goals and objectives of the project; The number of training and ACTION: Notice. technical assistance events provided by whether the grantee has expended funds the Center to SEAs and LEAs. in a manner that is consistent with its SUMMARY: The Department of Education • The percentage of training and approved application and budget; and, is issuing a notice inviting applications technical assistance services and if the Secretary has established for fiscal year (FY) 2018 for the products provided by the Center to performance measurement Fulbright-Hays Group Projects Abroad SEAs and LEAs that are deemed to be requirements, the performance targets in (GPA) program, Catalog of Federal useful through an independent expert the grantee’s approved application. Domestic Assistance (CFDA) number review. In making a continuation award, the 84.021A. • For a representative sample of LEAs Secretary also considers whether the grantee is operating in compliance with DATES: that receive training or technical Applications Available: May 16, 2018. assistance, the percentage of LEAs in the assurances in its approved application, including those applicable Deadline for Transmittal of which SEL EBPPs are implemented in Applications: July 5, 2018. schools with fidelity as determined to Federal civil rights laws that prohibit ADDRESSES: For the addresses for through an independent expert review. discrimination in programs or activities receiving Federal financial assistance obtaining and submitting an (b) Performance measure targets. The application, please refer to our Common applicant must propose in the from the Department (34 CFR 100.4, 104.5, 106.4, 108.8, and 110.23). Instructions for Applicants to application annual targets for the Department of Education Discretionary measures listed in paragraph (a). As VII. Other Information Grant Programs, published in the directed under 34 CFR 75.110(b), Accessible Format: Individuals with Federal Register on February 12, 2018 applicants must include why each disabilities can obtain this document (83 FR 6003) and available at proposed performance target is and a copy of the application package in www.gpo.gov/fdsys/pkg/FR-2018-02-12/ ambitious yet achievable compared to an accessible format (e.g., braille, large pdf/2018-02558.pdf. the baseline for the performance print, audiotape, or compact disc) on FOR FURTHER INFORMATION CONTACT: measure. request to the program contact person (c) As required under 34 CFR Carla White, U.S. Department of listed under FOR FURTHER INFORMATION Education, 400 Maryland Avenue SW, 75.110(c), the applicant must also CONTACT. describe: Room 258–22, Washington, DC 20202. Electronic Access to This Document: Telephone: (202) 453–6304. Email: (1) The data collection and reporting The official version of this document is methods the applicant would use and [email protected]. the document published in the Federal If you use a telecommunications why those methods are likely to yield Register. You may access the official reliable, valid, and meaningful device for the deaf (TDD) or a text edition of the Federal Register and the telephone (TTY), call the Federal Relay performance data; and Code of Federal Regulations via the (2) The applicant’s capacity to collect Service (FRS), toll free, at 1–800–877– Federal Digital System at: www.gpo.gov/ 8339. and report reliable, valid, and fdsys. At this site you can view this meaningful performance data, as document, as well as all other SUPPLEMENTARY INFORMATION: evidenced by high-quality data documents of this Department Full Text of Announcement collection, analysis, and reporting in published in the Federal Register, in other projects or research. text or Portable Document Format I. Funding Opportunity Description Note: If the applicant does not have (PDF). To use PDF you must have Purpose of Program: The purpose of experience with collection and reporting of Adobe Acrobat Reader, which is the Fulbright-Hays GPA program is to performance data through other projects or available free at the site. promote, improve, and develop modern research, the applicant should provide other You may also access documents of the foreign languages and area studies at evidence of capacity to successfully carry out Department published in the Federal varying levels of education. The data collection and reporting for its proposed Register by using the article search program provides opportunities for project. The reviewers of each application will score related selection criteria on the feature at: www.federalregister.gov. faculty, teachers, and undergraduate basis of how well an applicant has Specifically, through the advanced and graduate students to conduct considered the requirements in paragraphs search feature at this site, you can limit individual and group projects overseas (a), (b), and (c) in conceptualizing the your search to documents published by to carry out research and study in the approach and evaluation of the project. the Department. fields of modern foreign languages and

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area studies. This competition will Absolute Priority: For FY 2018 and thematic focus on any modern foreign support both Fulbright-Hays GPA short- any subsequent year in which we make language except French, German, or term projects (GPA short-term projects) awards from the list of unfunded Spanish. and Fulbright-Hays GPA long-term applications from this competition, this Competitive Preference Priority 4— projects (GPA long-term projects). priority is an absolute priority. Under 34 Inclusion of K–12 Educators (2 Points). There are three types of GPA short- CFR 75.105(c)(3), we consider only term projects: (1) Short-term seminar applications that meet this priority. Applications that propose short-term projects of four to six weeks in length This priority is: projects abroad that develop and designed to increase the linguistic or improve foreign language studies, area cultural competency of U.S. students Specific Geographic Regions of the studies, or both at elementary and and educators by focusing on a World. secondary schools by including K–12 particular aspect of area study, such as A group project that focuses on one or teachers or K–12 administrators as at the culture of an area or country of more of the following geographic least 50 percent of the project study (34 CFR 664.11); (2) curriculum regions of the world: Africa, East Asia, participants. development projects of four to eight South Asia, Southeast Asia and the Definitions: The following definitions weeks in length that provide Pacific, the Western Hemisphere are from the notice of final priorities participants an opportunity to acquire (Central and South America, Mexico, and definitions published in the Federal resource materials for curriculum and the Caribbean), Eastern and Central Register on June 16, 2016 (81 FR 39196) development in modern foreign Europe and Eurasia, and the Near East. and are designed to provide clarity for language and area studies for use and Competitive Preference Priorities: For applicants addressing the competitive dissemination in the United States (34 FY 2018, these priorities are competitive preference priorities. CFR 664.12); and (3) group research or preference priorities. Under 34 CFR Community college means an study projects of three to twelve months 75.105(c)(2)(i), we award three institution that meets the definition in in duration designed to give participants additional points to an application that section 312(f) of the Higher Education the opportunity to undertake research or meets Competitive Preference Priority 1; Act of 1965, as amended (HEA) (20 study in a foreign country (34 CFR two additional points to an application U.S.C. 1058(f)); or an institution of 664.13). that meets Competitive Preference higher education (IHE) (as defined in GPA long-term projects are advanced Priority 2; two additional points to an section 101 of the HEA (20 U.S.C. 1001)) overseas intensive language projects that application that meets Competitive that awards degrees and certificates, may be carried out during a full year, an Preference Priority 3; and two points to more than 50 percent of which are not academic year, a semester, a trimester, an application that meets Competitive bachelor’s degrees (or an equivalent). a quarter, or a summer. GPA long-term Preference Priority 4. Applicants for Minority-serving institution (MSI) projects are designed to take advantage GPA short-term projects may address means an institution that is eligible to of the opportunities in the foreign Competitive Preference Priorities 1, 3, receive assistance under sections 316 country that are not present in the and 4. Applicants for GPA long-term through 320 of part A of title III, under United States when providing intensive projects may address Competitive part B of title III, or under title V of the advanced foreign language training. Preference Priorities 2 and 3. An HEA. Only participants who have successfully applicant must identify the priority or New applicant means any applicant completed at least two academic years priorities that it believes it meets and that has not received a discretionary of training in the language to be studied provide documentation supporting its grant from the Department of Education are eligible for language training under claims. under the Fulbright-Hays Act prior to this program. In addition, the language These priorities are: the deadline date for applications under to be studied must be indigenous to the Competitive Preference Priority 1— this program. host country and maximum use must be State educational agency means the made of local institutions and personnel Applications for GPA Short-Term Projects From Selected Institutions and State board of education or other agency (34 CFR 664.14). or officer primarily responsible for the Applicants may submit only one GPA Organizations (3 Points). supervision of public elementary and short-term or GPA long-term application Applications for GPA short-term secondary schools in a State. In the under this notice and must identify projects from the following types of absence of this officer or agency, it is an whether they are applying for a GPA institutions and organizations: officer or agency designated by the short-term project or a GPA long-term • Minority-Serving Institutions (MSIs) Governor or State law. project grant. • Community colleges Program Authority: 22 U.S.C. Priorities: This notice contains one • New applicants 2452(b)(6). absolute priority and four competitive • State educational agencies preference priorities. In accordance with Applicable Regulations: (a) The 34 CFR 75.105(b)(2)(ii), the absolute Competitive Preference Priority 2— Education Department General priority is from the regulations for this Applications for GPA Long-Term Administrative Regulations in 34 CFR program (34 CFR 664.32). Competitive Projects From MSIs (2 Points). parts 75, 77, 81, 82, 84, 86, 97, 98, and Preference Priorities 1 and 2 are from Applications for GPA long-term 99. (b) The Office of Management and the notice of final priorities and advanced overseas intensive language Budget Guidelines to Agencies on definitions published in the Federal training projects from MSIs. Governmentwide Debarment and Register on June 16, 2016 (81 FR 39196). Suspension (Nonprocurement) in 2 CFR Competitive Preference Priority 3 is Competitive Preference Priority 3— part 180, as adopted and amended as from the regulations for this program (34 Substantive Training and Thematic regulations of the Department in 2 CFR CFR 664.32), and Competitive Focus on Less Commonly Taught part 3485. (c) The Uniform Preference Priority 4 is from the notice Languages (2 Points). Administrative Requirements, Cost of final priorities published in the Applications that propose GPA short- Principles, and Audit Requirements for Federal Register on September 24, 2010 term projects or GPA long-term projects Federal Awards in 2 CFR part 200, as (75 FR 59050). that provide substantive training and adopted and amended as regulations of

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the Department in 2 CFR part 3474. (d) 2. Cost Sharing or Matching: This V. Application Review Information The regulations for this program in 34 program does not require cost sharing or 1. Selection Criteria: The selection CFR part 664. (e) The notice of final matching. criteria for this program are from 34 CFR priorities and definitions published in 3. Subgrantees: A grantee under this 664.31 and are as follows: the Federal Register on June 16, 2016 competition may not award subgrants to (a) Plan of operation. (20 points) (81 FR 39196). (f) The notice of final entities to directly carry out project (1) The Secretary reviews each priorities for this program published in activities described in its application. application for information to determine the Federal Register on September 24, IV. Application and Submission the quality of the plan of operation for 2010 (75 FR 59050). Information the project. (2) The Secretary looks for Note: The regulations in 34 CFR part 86 1. Application Submission apply to IHEs only. information that shows— Instructions: For information on how to (i) High quality in the design of the II. Award Information submit an application please refer to our project; Common Instructions for Applicants to (ii) An effective plan of management Type of Award: Discretionary grants. Department of Education Discretionary Estimated Available Funds: that insures proper and efficient Grant Programs, published in the administration of the project; $2,792,440. Federal Register on February 12, 2018 Contingent upon the availability of (iii) A clear description of how the (83 FR 6003) and available at objectives of the project relate to the funds and the quality of applications, www.gpo.gov/fdsys/pkg/FR-2018-02-12/ we may make additional awards in FY purpose of the program; pdf/2018-02558.pdf. (iv) The way the applicant plans to 2018 from the list of unfunded 2. Intergovernmental Review: This applications from this competition. use its resources and personnel to program is not subject to Executive achieve each objective; and Estimated Range of Awards: Order 12372 and the regulations in 34 GPA short-term projects: $50,000– (v) A clear description of how the CFR part 79. applicant will ensure that project $100,000. 3. Funding Restrictions: We specify GPA long-term projects: $50,000– participants who are otherwise eligible unallowable costs in 34 CFR 664.33. We to participate are selected without $250,000. reference additional regulations Estimated Average Size of Awards: regard to race, color, national origin, outlining funding restrictions in the GPA short-term projects: $80,059. gender, age, or handicapping condition. GPA long-term projects: $185,025. Applicable Regulations section of this (b) Quality of key personnel. (10 Maximum Award: We will not make notice. points) 4. Recommended Page Limit: The a GPA short-term award exceeding (1) The Secretary reviews each application narrative (Part III) is where $100,000 for a single project period of application for information to determine you, the applicant, address the selection 18 months. We will not make a GPA the quality of key personnel the criteria that reviewers use to evaluate long-term project award exceeding applicant plans to use on the project. your application. We recommend that $250,000 for a single budget period of (2) The Secretary looks for you (1) limit the application narrative to 24 months. information that shows— Estimated Number of Awards: 25. no more than 40 pages and (2) use the (i) The qualifications of the project following standards: director; GPA short-term projects: 10. • ″ ″ GPA long-term projects: 15. A ‘‘page’’ is 8.5 x 11 , on one side (ii) The qualifications of each of the only, with 1″ margins at the top, bottom, other key personnel to be used in the Note: The Department is not bound by any and both sides. project; estimates in this notice. • Double space (no more than three (iii) The time that each person Project Period: lines per vertical inch) all text in the referred to in paragraphs (b)(2)(i) and (ii) GPA short-term projects: Up to 18 application narrative, including titles, of this section will commit to the months. headings, footnotes, quotations, project; and GPA long-term projects: Up to 24 references, and captions, as well as all (iv) The extent to which the applicant, months. text in charts, tables, figures, and as part of its nondiscriminatory graphs. III. Eligibility Information employment practices, will ensure that • Use a font that is either 12 point or its personnel are selected for 1. Eligible Applicants: (1) IHEs, (2) larger, or no smaller than 10 pitch employment without regard to race, State departments of education, (3) (characters per inch). color, national origin, gender, age, or Private nonprofit educational • Use one of the following fonts: handicapping condition. organizations, and (4) Consortia of these Times New Roman, Courier, Courier (3) To determine the qualifications of entities. New, or Arial. a person, the Secretary considers Eligible Participants: Citizens, The recommended 40-page limit does evidence of past experience and training nationals, or permanent residents of the not apply to Part I, the Application for in fields related to the objectives of the United States, who are (1) faculty Federal Assistance face sheet (SF 424); project as well as other information that members who teach modern foreign the supplemental information form the applicant provides. languages or area studies in an IHE, (2) required by the Department of (c) Budget and cost effectiveness. (10 teachers in elementary or secondary Education; Part II, Budget Information— points) schools, (3) experienced education Non-Construction Programs (ED 524); (1) The Secretary reviews each administrators responsible for planning, Part IV, assurances, certifications, and application for information that shows conducting, or supervising programs in the response to section 427 of the that the project has an adequate budget modern foreign language or area studies General Education Provisions Act; the and is cost effective. at the elementary, secondary, or table of contents; the one-page project (2) The Secretary looks for postsecondary levels, or (4) graduate abstract; the appendices; or the line- information that shows— students, or juniors or seniors in an IHE, item budget. However, the (i) The budget for the project is who plan teaching careers in modern recommended page limit does apply to adequate to support the project foreign languages or area studies. all of the application narrative. activities; and

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(ii) Costs are reasonable in relation to 3. Risk Assessment and Specific requirements in the Applicable the objectives of the project. Conditions: Consistent with 2 CFR Regulations section of this notice. (d) Evaluation plan. (20 points) 200.205, before awarding grants under We reference the regulations outlining (1) The Secretary reviews each this competition the Department the terms and conditions of an award in application for information that shows conducts a review of the risks posed by the Applicable Regulations section of the quality of the evaluation plan for the applicants. Under 2 CFR 3474.10, the this notice and include these and other project. Secretary may impose specific specific conditions in the GAN. The (2) The Secretary looks for conditions and, in appropriate GAN also incorporates your approved information that shows that the methods circumstances, high-risk conditions on a application as part of your binding of evaluation are appropriate for the grant if the applicant or grantee is not commitments under the grant. project and, to the extent possible, are financially stable; has a history of 3. Open Licensing Requirements: objective and produce data that are unsatisfactory performance; has a Unless an exception applies, if you are quantifiable. financial or other management system awarded a grant under this competition, (e) Adequacy of resources. (5 points) that does not meet the standards in 2 you will be required to openly license (1) The Secretary reviews each CFR part 200, subpart D; has not to the public grant deliverables created application for information that shows fulfilled the conditions of a prior grant; in whole, or in part, with Department that the applicant plans to devote or is otherwise not responsible. grant funds. When the deliverable adequate resources to the project. 4. Integrity and Performance System: consists of modifications to pre-existing (2) The Secretary looks for If you are selected under this works, the license extends only to those information that shows that the competition to receive an award that modifications that can be separately facilities, equipment, and supplies that over the course of the project period identified and only to the extent that the applicant plans to use are adequate. may exceed the simplified acquisition open licensing is permitted under the (f) Potential impact of the project on threshold (currently $150,000), under 2 terms of any licenses or other legal the development of the study of modern CFR 200.205(a)(2) we must make a restrictions on the use of pre-existing foreign languages and area studies in judgment about your integrity, business works. Additionally, a grantee or American education. (15 points) ethics, and record of performance under subgrantee that is awarded competitive (g) The project’s relevance to the Federal awards—that is, the risk posed grant funds must have a plan to applicant’s educational goals and its by you as an applicant—before we make disseminate these public grant relationship to its program development an award. In doing so, we must consider deliverables. This dissemination plan in modern foreign languages and area any information about you that is in the can be developed and submitted after studies. (10 points) integrity and performance system your application has been reviewed and (h) The extent to which direct (currently referred to as the Federal selected for funding. For additional experience abroad is necessary to Awardee Performance and Integrity information on the open licensing achieve the project’s objectives and the Information System (FAPIIS)), requirements please refer to 2 CFR effectiveness with which relevant host accessible through the System for 3474.20. country resources will be utilized. (10 Award Management. You may review 4. Reporting: (a) If you apply for a points) and comment on any information about grant under this competition, you must 2. Review and Selection Process: We yourself that a Federal agency ensure that you have in place the remind potential applicants that in previously entered and that is currently necessary processes and systems to reviewing applications in any in FAPIIS. comply with the reporting requirements discretionary grant competition, the Please note that, if the total value of in 2 CFR part 170 should you receive Secretary may consider, under 34 CFR your currently active grants, cooperative funding under the competition. This 75.217(d)(3), the past performance of the agreements, and procurement contracts does not apply if you have an exception applicant in carrying out a previous from the Federal Government exceeds under 2 CFR 170.110(b). award, such as the applicant’s use of $10,000,000, the reporting requirements (b) At the end of your project period, funds, achievement of project in 2 CFR part 200, Appendix XII, you must submit a final performance objectives, and compliance with grant require you to report certain integrity report, including financial information, conditions. The Secretary may also information to FAPIIS semiannually. as directed by the Secretary. If you consider whether the applicant failed to Please review the requirements in 2 CFR receive a multiyear award, you must submit a timely performance report or part 200, Appendix XII, if this grant submit an annual performance report submitted a report of unacceptable plus all the other Federal funds you that provides the most current quality. receive exceed $10,000,000. performance and financial expenditure In addition, in making a competitive information as directed by the Secretary grant award, the Secretary requires VI. Award Administration Information under 34 CFR 75.118. The Secretary various assurances including those 1. Award Notices: If your application may also require more frequent applicable to Federal civil rights laws is successful, we notify your U.S. performance reports under 34 CFR that prohibit discrimination in programs Representative and U.S. Senators and 75.720(c). For specific requirements on or activities receiving Federal financial send you a Grant Award Notification reporting, please go to www.ed.gov/ assistance from the Department (34 CFR (GAN); or we may send you an email fund/grant/apply/appforms/ 100.4, 104.5, 106.4, 108.8, and 110.23). containing a link to access an electronic appforms.html. For FY 2018, GPA short-term project version of your GAN. We may notify 5. Performance Measures: Under the applications will be reviewed by you informally, also. Government Performance and Results separate panels according to world area. If your application is not evaluated or Act of 1993, the following measure will GPA long-term project applications will not selected for funding, we notify you. be used by the Department to evaluate be reviewed by one panel. A rank order 2. Administrative and National Policy the success of the GPA short-term from the highest panel score to the Requirements: We identify program: The percentage of GPA short- lowest score will be developed for each administrative and national policy term project participants who of the two types of projects and will be requirements in the application package disseminated information about or used for funding purposes. and reference these and other materials from their group project

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abroad through more than one outreach DEPARTMENT OF EDUCATION areas: Africa, East Asia, Southeast Asia activity within six months of returning and the Pacific Islands, South Asia, the to their home institution. The following Applications for New Awards; Near East, Central and Eastern Europe measure will be used by the Department Fulbright-Hays Doctoral Dissertation and Eurasia, and the Western to evaluate the success of the GPA long- Research Abroad Fellowship Program Hemisphere (excluding the United term program: The percentage of GPA States and its territories). AGENCY: Office of Postsecondary long-term project participants who Competitive Preference Priorities: Education, Department of Education. increased their reading, writing, and/or Within this absolute priority, we give listening/speaking foreign language ACTION: Notice. competitive preference to applications scores by one proficiency level. The SUMMARY: The Department of Education that address one or both of the following efficiency of the GPA long-term program is issuing a notice inviting applications priorities. Under 34 CFR 75.105(c)(2)(i), will be measured by considering the for fiscal year (FY) 2018 for the for FY 2018, we award an additional cost per GPA participant who increased Fulbright-Hays Doctoral Dissertation two points to an application that meets his/her foreign language score in Research Abroad (DDRA) Fellowship Competitive Preference Priority 1 and reading, writing, and/or listening/ program, Catalog of Federal Domestic three points to an application that meets speaking by at least one proficiency Assistance (CFDA) number 84.022A. Competitive Preference Priority 2 (up to level. 5 additional points possible). The information provided by grantees DATES: Applications Available: May 16, 2018. These priorities are: in their performance reports submitted Competitive Preference Priority 1— via the International Resource Deadline for Transmittal of Applications: July 2, 2018. Focus on Less Commonly Taught Information System (IRIS) will be the Languages (2 points). ADDRESSES: source of data for this measure. The addresses pertinent to A research project that focuses on any Reporting screens for institutions can be this DDRA competition—including the modern foreign language except French, viewed at: http://iris.ed.gov/iris/pdfs/ addresses for obtaining and submitting German, or Spanish. _ gpa director.pdf and http://iris.ed.gov/ an application—can be found under Competitive Preference Priority 2— _ iris/pdfs/gpa participant.pdf. SUPPLEMENTARY INFORMATION. Thematic Focus on Academic Fields (3 FOR FURTHER INFORMATION CONTACT: VII. Other Information Dr. points). Pamela J. Maimer, U.S. Department of A research project conducted in the Accessible Format: Individuals with Education, 400 Maryland Avenue SW, field of science, technology, disabilities can obtain this document Room 258–24, Washington, DC 20202. engineering, mathematics, computer and a copy of the application package in Telephone: (202) 453–6891. Email: science, education (comparative or an accessible format (e.g., braille, large [email protected]. international), international print, audiotape, or compact disc) on If you use a telecommunications request to the program contact person development, political science, public device for the deaf (TDD) or a text health, or economics. listed under FOR FURTHER INFORMATION telephone (TTY), call the Federal Relay CONTACT. Service (FRS), toll free, at 1–800–877– Note: Applicants that address Competitive Preference Priority 2 must intend to engage Electronic Access to This Document: 8339. The official version of this document is in full-time dissertation research abroad in the document published in the Federal SUPPLEMENTARY INFORMATION: modern foreign languages and area studies Register. You may access the official with a thematic focus on any one of the Full Text of Announcement academic fields referenced above. edition of the Federal Register and the Code of Federal Regulations via the I. Funding Opportunity Description Invitational Priority: For FY 2018, this Federal Digital System at: www.gpo.gov/ Purpose of Program: The Fulbright- priority is an invitational priority. fdsys. At this site you can view this Hays DDRA Fellowship program Under 34 CFR 75.105(c)(1), we do not document, as well as all other provides opportunities to doctoral give an application that meets this documents of this Department candidates to engage in full-time invitational priority a competitive or published in the Federal Register, in dissertation research abroad in modern absolute preference over other text or portable document format (PDF). foreign languages and area studies. The applications. To use PDF you must have Adobe program is designed to contribute to the This priority is: Acrobat Reader, which is available free development and improvement of the Applications from Minority-Serving at the site. study of modern foreign languages and Institutions. You may also access documents of the area studies in the United States. For purposes of this invitational Department published in the Federal Priorities: This notice contains one priority, Minority-Serving Institution Register by using the article search absolute priority, two competitive means an institution of higher education feature at: www.federalregister.gov. preference priorities, and one (IHE) that is eligible to receive Specifically, through the advanced invitational priority. In accordance with assistance under part A of title III, under search feature at this site, you can limit 34 CFR 75.105(b)(2)(ii), the absolute and part B of title III, or under title V of the your search to documents published by competitive preference priorities are Higher Education Act of 1965, as the Department. from the regulations for this program (34 amended. Dated: May 11, 2018. CFR 662.21(d)). Program Authority: 22 U.S.C. Frank T. Brogan, Absolute Priority: For FY 2018, this 2452(b)(6). Principal Deputy Assistant Secretary and priority is an absolute priority. Under 34 Applicable Regulations: (a) The Delegated the duties of the Assistant CFR 75.105(c)(3), we consider only Education Department General Secretary, Office of Planning, Evaluation and applications that meet this priority. Administrative Regulations in 34 CFR Policy Development, Delegated the duties of This priority is: parts 75, 77, 81, 82, 84, 86, 97, 98, and the Assistant Secretary, Office of Specific Geographic Regions of the 99. (b) The Office of Management and Postsecondary Education. World. Budget Guidelines to Agencies on [FR Doc. 2018–10475 Filed 5–15–18; 8:45 am] A research project that focuses on one Governmentwide Debarment and BILLING CODE 4000–01–P or more of the following geographic Suspension (Nonprocurement) in 2 CFR

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part 180, as adopted and amended as INFORMATION CONTACT. If, after complete responses to the selection regulations of the Department in 2 CFR consultation with FUSP, we determine criteria in the application narrative. The part 3485. (c) The Uniform that FUSP has expended funds on the recommended page limits only apply to Administrative Requirements, Cost student (e.g., the candidate has attended the application narrative and Principles, and Audit Requirements for the pre-departure orientation or was bibliography. Federal Awards in 2 CFR part 200, as issued grant funds), the candidate will 3. Submission Dates and Times: adopted and amended as regulations of be considered ineligible for an award Submit applications for grants under the Department in 2 CFR part 3474. (d) under the Fulbright-Hays DDRA the program electronically using G5.gov. The regulations for this program in 34 Fellowship Program. For information (including dates and CFR part 662. times) about how to submit your IV. Application and Submission application electronically, please refer Note: The open licensing requirement in 2 Information CFR 3474.20 does not apply for this program. to 7. Other Submission Requirements. 1. Address to Request Application We do not consider an application II. Award Information Package: Both IHEs and student that does not comply with the deadline applicants can obtain an application requirements. Type of Award: Discretionary grants package via the internet or from the 4. Intergovernmental Review: This redistributed as fellowships to Education Publications Center (ED program is not subject to Executive individual beneficiaries. PUBS). To obtain a copy via the Order 12372 and the regulations in 34 Estimated Available Funds: internet, use the following address: CFR part 79. $3,408,151. 5. Funding Restrictions: We reference Estimated Range of Awards: $15,000– www.G5.gov. To obtain a copy from ED Pubs, write, fax, or call the following: regulations outlining funding 60,000. restrictions in the Applicable Estimated Average Size of Awards: ED Pubs, U.S. Department of Education, P.O. Box 22207, Alexandria, VA 22304. Regulations section of this notice. $37,452. 6. Data Universal Numbering System Estimated Number of Awards: 91. Telephone, toll free: 1–877–433–7827. FAX: (703) 605–6794. If you use a Number, Taxpayer Identification Note: The Department is not bound by any telecommunications device for the deaf Number, and System for Award estimates in this notice. (TDD) or a text telephone (TTY), call, Management: Project Period: The institutional toll free: 1–877–576–7734. To do business with the Department project period is 18 months, beginning You can contact ED Pubs at its of Education, you must— October 1, 2018. Students may request website, also: www.EDPubs.gov or at its a. Have a Data Universal Numbering funding for a period of no less than six email address: [email protected]. System (DUNS) number and a Taxpayer months and no more than 12 months. If you request an application package Identification Number (TIN); from ED Pubs, be sure to identify this b. Register both your DUNS number III. Eligibility Information program as follows: CFDA number and TIN with the System for Award 1. Eligible Applicants: IHEs. As part of 84.022A. Management (SAM), the Government’s the application process, students submit 2. Recommended Page Limits: The primary registrant database; individual applications to the IHE. The application narrative is where the c. Provide your DUNS number and IHE then officially submits all eligible student applicant addresses the TIN on your application; and individual student applications with its selection criteria that reviewers use to d. Maintain an active SAM grant application to the Department. evaluate the application. We registration with current information 2. Cost Sharing or Matching: This recommend that the student applicant while your application is under review program does not require cost sharing or (1) limit the application narrative to no by the Department and, if you are matching. more than 10 pages and the awarded a grant, during the project 3. Subgrantees: A grantee under this bibliography to no more than two pages; period. competition may not award subgrants to and (2) use the following standards: You can obtain a DUNS number from entities to directly carry out project • A ‘‘page’’ is 8.5″ x 11″, on one side Dun and Bradstreet at the following activities described in its application. only, with 1″ margins at the top, bottom, website: http://fedgov.dnb.com/ 4. Other: Under 34 CFR 662.22(b), no and both sides. webform. A DUNS number can be student applicant may receive grants • Double space (no more than three created within one to two business days. from the Fulbright U.S. Student Program lines per vertical inch) all text in the If you are a corporate entity, agency, (FUSP) and a grant from the Fulbright- application narrative and bibliography. institution, or organization, you can Hays DDRA Fellowship Program However, student applicants may single obtain a TIN from the Internal Revenue concurrently. Once a candidate has space all text in charts, tables, figures, Service. If you are an individual, you accepted an award from FUSP and graphs, titles, headings, footnotes, can obtain a TIN from the Internal FUSP has expended funds on the endnotes, quotations, bibliography, and Revenue Service or the Social Security student, the student is then ineligible captions. Administration. If you need a new TIN, for a grant under the Fulbright-Hays • Use a font that is either 12 point or please allow two to five weeks for your DDRA Fellowship Program. A student larger or no smaller than 10 pitch TIN to become active. applying for a grant under the Fulbright- (characters per inch). The SAM registration process can take Hays DDRA Fellowship Program must • Use one of the following fonts: approximately seven business days, but indicate on the application if the Times New Roman, Courier, Courier may take upwards of several weeks, student has currently applied for a New, or Arial. depending on the completeness and FUSP grant. If, at any point, the The recommended page limit does not accuracy of the data you enter into the candidate accepts a FUSP award prior to apply to the Application for Federal SAM database. Thus, if you think you being notified of the candidate’s status Assistance face sheet (SF 424), the might want to apply for Federal with the Fulbright-Hays DDRA supplemental information form required financial assistance under a program Fellowship Program, the candidate by the Department of Education, or the administered by the Department, please should immediately notify the program assurances and certification. However, allow sufficient time to obtain and contact person listed under FOR FURTHER student applicants must include their register your DUNS number and TIN.

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We strongly recommend that you them to their IHE’s project director note that this will likely result in your register early. using G5; application not being considered for Note: Once your SAM registration is active, (3) Persons providing references for funding. The Department will not it may be 24 to 48 hours before you can individual students must complete and convert material from other formats to submit an application through G5. submit reference forms for the students PDF. and submit them to the IHE’s project • Submit student transcripts If you are currently registered with director using G5; and electronically through the G5 system. SAM, you may not need to make any (4) The IHE’s project director must • Prior to submitting your electronic changes. However, please make certain officially submit the IHE’s application, application, you may wish to print a that the TIN associated with your DUNS including all eligible individual student copy of it for your records. number is correct. Also note that you applications, reference forms, and other • After the individual student will need to update your registration required forms, using G5. applicant electronically submits his or annually. This may take three or more • The IHE must complete the her application to the student’s IHE, the business days. electronic submission of the grant student will receive an automatic Information about SAM is available at application by 4:30:00 p.m., Eastern acknowledgment. After a person www.SAM.gov. To further assist you Time, on the application deadline date. submits a reference electronically, he or with obtaining and registering your G5 will not accept an application for she will receive an online confirmation. DUNS number and TIN in SAM or this competition after 4:30:00 p.m., After the applicant IHE submits its updating your existing SAM account, Eastern Time, on the application application, including all eligible we have prepared a SAM.gov Tip Sheet, deadline date. Therefore, we strongly individual student applications, to the which you can find at: www2.ed.gov/ recommend that both the IHE and the Department, the applicant IHE will fund/grant/apply/sam-faqs.html. student applicant not wait until the receive an automatic acknowledgment 7. Other Submission Requirements: application deadline date to begin the that will include a unique PR/Award Applications for grants under this application process. • number for the IHE’s application. program must be submitted The hours of operation of the G5 • Within three working days after electronically unless an IHE qualifies for website are 6:00 a.m. Monday until 9:00 submitting its electronic application the an exception to this requirement in p.m., Wednesday; and 6:00 a.m. applicant IHE must— accordance with the instructions in this Thursday until 3:00 p.m., Sunday, (1) Print SF 424 from G5; section. Eastern Time. Please note that, because (2) The applicant IHE’s Authorizing a. Electronic Submission of of maintenance, the system is Representative must sign this form; Applications. unavailable between 3:00 p.m. on (3) Place the PR/Award number in the Submit applications for grants under Sundays and 6:00 a.m. on Mondays, and upper right-hand corner of the hard- the Fulbright-Hays DDRA Fellowship between 9:00 p.m. on Wednesdays and copy signature page of the SF 424; and Program, CFDA number 84.022A, 6:00 a.m. on Thursdays, Eastern Time. (4) Fax the signed SF 424 to the electronically using the G5 system, Any modifications to these hours are Application Control Center at (202) accessible through the Department’s G5 posted on the G5 website. 245–6272. site at: www.G5.gov. While completing • Student applicants will not receive • We may request that you provide us the electronic application, both the IHE additional point value because the original signatures on other forms at a and the student applicant will be student submits his or her application later date. entering data online that will be saved in electronic format, nor will we Application Deadline Date Extension into a database. Neither the IHE nor the penalize the IHE or student applicant if in Case of System Unavailability: If an student applicant may email an the applicant qualifies for an exception IHE is prevented from electronically electronic copy of a grant application to to the electronic submission submitting its application on the us. requirement, as described elsewhere in application deadline date because the Please note the following: this section, and submits an application G5 system is unavailable, we will grant • The process for submitting in paper format. the IHE an extension until 4:30:00 p.m., applications electronically under the • IHEs must submit all documents Eastern Time, the following business Fulbright-Hays DDRA Fellowship electronically, including all information day to enable the IHE to transmit its Program has several parts. The typically provided on the following application electronically, by mail, or by following is a brief summary of the forms: the Application for Federal hand delivery. We will grant this process; however, all applicants should Assistance (SF 424), the Department of extension if— review the detailed description of the Education Supplemental Information for (1) The IHE is a registered user of the application process in the application SF 424, Budget Information—Non- G5 system and the IHE has initiated an package. In summary, the major steps Construction Programs (ED 524), and all electronic application for this are: necessary assurances and certifications. competition; and (1) IHEs must email the name of the • Both IHEs and student applicants (2) (a) G5 is unavailable for 60 institution and the full name and email must upload any narrative sections and minutes or more between the hours of address of potential project director to all other attachments to their 8:30 a.m. and 3:30 p.m., Eastern Time, [email protected]. We recommend that application as files in a read-only on the application deadline date; or applicant IHEs submit this information flattened Portable Document Format (b) G5 is unavailable for any period of as soon as possible to ensure that they (PDF), meaning any fillable documents time between 3:30 p.m. and 4:30:00 obtain access to G5 well before the must be saved and submitted as non- p.m., Eastern Time, on the application application deadline date. We suggest fillable PDF files. Do not upload an deadline date. that IHEs submit this information no interactive or fillable PDF file. If you We must acknowledge and confirm later than two weeks prior to the closing upload a file type other than a read- these periods of unavailability before date to facilitate timely submission of only, non-modifiable PDF (e.g., Word, granting the IHE an extension. To their applications; Excel, WordPerfect, etc.) or submit a request this extension or to confirm our (2) Students must complete their password-protected file, we will be acknowledgment of any system individual applications and submit unable to review that material. Please unavailability, an IHE may contact

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either (1) the person listed under FOR relying on this method, the IHE should check (b) Qualifications of the applicant. (40 FURTHER INFORMATION CONTACT in with its local post office. points) The Secretary reviews each section I of this notice or (2) the e- We will not consider applications application to determine the Grants help desk at 1–888–336–8930. If postmarked after the application qualifications of the applicant. The G5 is unavailable due to technical deadline date. Secretary considers— problems with the system and, c. Note for Mail or Hand Delivery of (1) The overall strength of the therefore, the application deadline is Paper Applications: If an IHE mails or applicant’s graduate academic record; extended, an email will be sent to all hand delivers its application to the (2) The extent to which the registered users who have initiated a G5 Department— applicant’s academic record demonstrates strength in area studies application. Extensions referred to in (1) The IHE must indicate on the relevant to the proposed project; this section apply only to the envelope and—if not provided by the unavailability of the G5 system. (3) The applicant’s proficiency in one Department—in Item 11 of the SF 424 or more of the languages (other than b. Submission of Paper Applications. the CFDA number, including suffix We discourage paper applications, but English and the applicant’s native letter, if any, of the competition under language) of the country or countries of if electronic submission is not possible which the IHE is submitting its (e.g., you do not have access to the research, and the specific measures to application; and be taken to overcome any anticipated internet), you must provide a written (2) The Application Control Center statement that you intend to submit a language barriers; and will mail a notification of receipt of the (4) The applicant’s ability to conduct paper application. Send this written IHE’s grant application. If the IHE does statement no later than two weeks research in a foreign cultural context, as not receive this grant notification within evidenced by the applicant’s references before the application deadline date (14 15 business days from the application calendar days or, if the fourteenth or previous overseas experience, or deadline date, the IHE should call the both. calendar day before the application U.S. Department of Education deadline date falls on a Federal holiday, 2. Review and Selection Process: We Application Control Center at (202) remind potential applicants that in the next business day following the 245–6288. Federal holiday) to Dr. Pamela J. reviewing applications in any Maimer, U.S. Department of Education, V. Application Review Information discretionary grant competition, the Secretary may consider, under 34 CFR 400 Maryland Ave. SW, Room 258–24, 1. Selection Criteria: The selection Washington, DC 20202–4260. 75.217(d)(3), the past performance of the criteria for this competition are from the applicant in carrying out a previous Telephone: (202) 453–6891. Email: regulations for this program in 34 CFR [email protected]. award, such as the applicant’s use of 662.21 and are as follows: funds, achievement of project If you mail your written statement to (a) Quality of proposed project. (60 the Department, it must be postmarked objectives, and compliance with grant points) The Secretary reviews each conditions. The Secretary may also no later than two weeks before the application to determine the quality of application deadline date. Please send consider whether the applicant failed to the research project proposed by the submit a timely performance report or this statement to a person listed in the applicant. The Secretary considers— FOR FURTHER INFORMATION CONTACT submitted a report of unacceptable (1) The statement of the major quality. section of the competition NIA. hypotheses to be tested or questions to If you submit a paper application, you In addition, in making a competitive be examined, and the description and must mail the original and two copies grant award, the Secretary requires justification of the research methods to of your application, on or before the various assurances including those be used; application deadline date, to the applicable to Federal civil rights laws (2) The relationship of the research to Department at the following address: that prohibit discrimination in programs the literature on the topic and to major U.S. Department of Education, or activities receiving Federal financial theoretical issues in the field, and the Application Control Center, Attention: assistance from the Department of project’s originality and importance in (CFDA Number 84.022A), LBJ Basement Education (34 CFR 100.4, 104.5, 106.4, terms of the concerns of the discipline; Level 1, 400 Maryland Avenue SW, 108.8, and 110.23). (3) The preliminary research already Washington, DC 20202–4260. For FY 2018, student applications The IHE must show proof of mailing completed in the United States and will be divided into seven categories consisting of one of the following: overseas or plans for such research prior based on the world area focus of their (1) A legibly dated U.S. Postal Service to going overseas, and the kinds, quality research projects, as described in the postmark. and availability of data for the research absolute priority. Language and area (2) A legible mail receipt with the in the host country or countries; studies experts in discrete world area- date of mailing stamped by the U.S. (4) The justification for overseas field based panels will review the student Postal Service. research and preparations to establish applications. Each panel will review, (3) A dated shipping label, invoice, or appropriate and sufficient research score, and rank its applications receipt from a commercial carrier. contacts and affiliations abroad; separately from the applications (4) Any other proof of mailing (5) The applicant’s plans to share the assigned to the other world area panels. acceptable to the Secretary of the U.S. results of the research in progress and However, all fellowship applications Department of Education. a copy of the dissertation with scholars will be ranked together from the highest If the IHE mails its application and officials of the host country or to lowest score for funding purposes. through the U.S. Postal Service, we do countries; and 3. Risk Assessment and Specific not accept either of the following as (6) The guidance and supervision of Conditions: Consistent with 2 CFR proof of mailing: the dissertation advisor or committee at 200.205, before awarding grants under (1) A private metered postmark. all stages of the project, including this program the Department conducts a (2) A mail receipt that is not dated by guidance in developing the project, review of the risks posed by applicants. the U.S. Postal Service. understanding research conditions Under 2 CFR 3474.10, the Secretary may Note: The U.S. Postal Service does not abroad, and acquainting the applicant impose specific conditions and, in uniformly provide a dated postmark. Before with research in the field. appropriate circumstances, high-risk

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conditions on a grant if the applicant or GAN also incorporates the approved at: http://iris.ed.gov/iris/pdfs/DDRA_ grantee is not financially stable; has a application as part of the binding director.pdf. http://iris.ed.gov/iris/pdfs/ history of unsatisfactory performance; commitments under the grant. DDRA_fellow.pdf. has a financial or other management 3. Reporting: (a) If you apply for a VII. Other Information system that does not meet the standards grant under this competition, you must in 2 CFR part 200, subpart D; has not ensure that you have in place the Accessible Format: Individuals with fulfilled the conditions of a prior grant; necessary processes and systems to disabilities can obtain this document or is otherwise not responsible. comply with the reporting requirements and a copy of the application package in 4. Integrity and Performance System: in 2 CFR part 170 should you receive an accessible format (e.g., braille, large If you are selected under this funding under the competition. This print, audiotape, or compact disc) on competition to receive an award that does not apply if you have an exception request to the program contact person over the course of the project period under 2 CFR 170.110(b). listed under FOR FURTHER INFORMATION may exceed the simplified acquisition (b) At the end of your project period, CONTACT. threshold (currently $150,000), under 2 you must submit a final performance Electronic Access to This Document: CFR 200.205(a)(2) we must make a report, including financial information, The official version of this document is judgment about your integrity, business as directed by the Secretary. If you the document published in the Federal ethics, and record of performance under receive a multiyear award, you must Register. You may access the official Federal awards—that is, the risk posed submit an annual performance report edition of the Federal Register and the by you as an applicant—before we make that provides the most current Code of Federal Regulations via the an award. In doing so, we must consider performance and financial expenditure Federal Digital System at: www.gpo.gov/ any information about you that is in the information as directed by the Secretary fdsys. At this site you can view this integrity and performance system under 34 CFR 75.118. Grantees are document, as well as all other (currently referred to as the Federal required to use the electronic data documents of this Department Awardee Performance and Integrity instrument International Resource published in the Federal Register, in Information System (FAPIIS)), Information System (IRIS) to complete text or Portable Document Format accessible through the System for the final report. The Secretary may also (PDF). To use PDF you must have Award Management. You may review require more frequent performance Adobe Acrobat Reader, which is and comment on any information about reports under 34 CFR 75.720(c). For available free at the site. yourself that a Federal agency specific requirements on reporting, You may also access documents of the previously entered and that is currently please go to www.ed.gov/fund/grant/ Department published in the Federal in FAPIIS. apply/appforms/appforms.html. Register by using the article search Please note that, if the total value of 4. Performance Measures: Under the feature at: www.federalregister.gov. your currently active grants, cooperative Government Performance and Results Specifically, through the advanced agreements, and procurement contracts Act of 1993 (GPRA), the objective for the search feature at this site, you can limit from the Federal Government exceeds Fulbright-Hays DDRA Fellowship your search to documents published by $10,000,000, the reporting requirements Program is to provide grants to colleges the Department. in 2 CFR part 200, Appendix XII, and universities to fund individual Dated: May 11, 2018. require you to report certain integrity doctoral students to conduct research in Frank T. Brogan, information to FAPIIS semiannually. other countries in modern foreign Please review the requirements in 2 CFR languages and area studies for periods of Principal Deputy Assistant Secretary and Delegated the duties of the Assistant part 200, Appendix XII, if this grant 6 to 12 months. Secretary, Office of Planning, Evaluation and plus all the other Federal funds you The Department will use the Policy Development, Delegated the duties of receive exceed $10,000,000. following measures to evaluate its the Assistant Secretary, Office of success in meeting this objective: VI. Award Administration Information Postsecondary Education. DDRA GPRA Measure 1: The [FR Doc. 2018–10476 Filed 5–15–18; 8:45 am] 1. Award Notices: If a student percentage of DDRA fellows who BILLING CODE 4000–01–P application is successful, we notify the increased their foreign language scores IHE’s U.S. Representative and U.S. in speaking, reading, or writing by at Senators and send the IHE a Grant least one proficiency level. DEPARTMENT OF ENERGY Award Notification (GAN); or we may DDRA GPRA Measure 2: The send the IHE an email containing a link percentage of DDRA fellows who Agency Information Collection to access an electronic version of the complete their degree in their program Extension GAN. We may notify the IHE informally, of study within four years of receipt of also. the fellowship. AGENCY: U.S. Department of Energy. If a student application is not DDRA GPRA Measure 3: The ACTION: Notice and request for OMB evaluated or not selected for funding, percentage of DDRA fellows who found review and comment. we notify the IHE. employment that utilized their language 2. Administrative and National Policy and area studies skills within eight SUMMARY: The Department of Energy Requirements: We identify years of receiving their award. (DOE) has submitted an information administrative and national policy DDRA GPRA Measure 4: Efficiency collection request to OMB for extension requirements in the application package Measure—The cost per DDRA fellow under the provisions of the Paperwork and reference these and other who found employment that utilized Reduction Act of 1995. The information requirements in the Applicable their language and area studies skills collection requests a three-year Regulations section of this notice. within eight years. extension of its Labor Relations Report We reference the regulations outlining The information provided by grantees collection. The collection requests the terms and conditions of an award in in their performance report submitted information from the Department of the Applicable Regulations section of via IRIS will be the source of data for Energy Management and Operation this notice and include these and other this measure. Reporting screens for (M&O) and Facilities Management specific conditions in the GAN. The institutions and fellows may be viewed Contractors for contract administration,

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management oversight, and cost control. Management Contractors; (5) Annual Type of Meeting: In the interest of The information collection will assist Estimated Number of Respondents: 35; national security, the meeting will be the Department in evaluating the (6) Annual Estimated Number of Total closed to the public. The Federal implementation of the contractors’ work Responses: 35; (7) Annual Estimated Advisory Committee Act, 5 U.S.C. App. force collective bargaining agreements, Number of Burden Hours: 1.84 per 2, section 10(d), and the Federal and apprise the Department of respondent for total of 64.4 per year; (8) Advisory Committee Management significant labor-management Annual Estimated Reporting and Regulation, 41 CFR 102–3.155, developments at DOE contractor sites. Recordkeeping Cost Burden: $2,447.20. incorporate by reference the This information is used to ensure that Statutory Authority: 42 U.S.C. 7254, 7256. Government in the Sunshine Act, 5 Department contractors maintain good U.S.C. 552b, which, at 552b(c)(1) and labor relations and retain a workforce in Issued in Washington, DC, on: March 9, (c)(3) permits closure of meetings where 2018. accordance with the terms of their restricted data or other classified contract and in compliance with Jean S. Stucky, matters will be discussed. Such data statutory and regulatory requirements as Assistant General Counsel for Contractor and matters will be discussed at this identified by contract. Human Resources, Office of the General meeting. Counsel. DATES: Tentative Agenda: Welcome; reading Comments regarding this [FR Doc. 2018–10445 Filed 5–15–18; 8:45 am] collection must be received on or before of final draft of report; discussion of BILLING CODE 6450–01–P July 16, 2018. If you anticipate that you report, as necessary; (tentative) will be submitting comments, but find acceptance of report; discussion of next it difficult to do so within the period of charges; conclusion. DEPARTMENT OF ENERGY Public Participation: There will be no time allowed by this notice, please public participation in this closed advise the OMB Desk Officer of your National Nuclear Security meeting. Those wishing to provide intention to make a submission as soon Administration written comments or statements to the as possible. The Desk Officer may be Committee are invited to send them to telephoned at (202) 395–4650. Meeting of the Defense Programs Advisory Committee Dana Hunter at the address listed above. ADDRESSES: Written comments should Minutes: The minutes of the meeting be sent to: DOE Desk Officer, Office of AGENCY: Office of Defense Programs, will not be available. Information and Regulatory Affairs, National Nuclear Security Issued at Washington, DC, on May 10, Office of Management and Budget, New Administration, Department of Energy. 2018. Executive Office Building, Room 10102, ACTION: Notice of closed meeting. Latanya. Butler, 735 17th Street NW, Washington, DC Deputy Committee Management Officer. 20503. And to: John M. Sullivan, GC– SUMMARY: This notice announces a [FR Doc. 2018–10411 Filed 5–15–18; 8:45 am] 63, U.S. Department of Energy, 1000 closed meeting of the Defense Programs Independence Avenue SW, Washington, Advisory Committee (DPAC). The BILLING CODE 6450–01–P DC 20585, or by fax at (202) 586–0971; Federal Advisory Committee Act or by email to john.m.sullivan@ requires that public notice of meetings DEPARTMENT OF ENERGY hq.doe.gov. be announced in the Federal Register. FOR FURTHER INFORMATION CONTACT: Due to national security considerations, Federal Energy Regulatory Requests for additional information or under section 10(d) of the Act and 5 Commission copies of the information collection U.S.C. 552b(c), the meeting will be instrument and instructions should be closed to the public and matters to be Combined Notice of Filings discussed are exempt from public directed to: John M. Sullivan, Attorney- Take notice that the Commission has disclosure under Executive Order 13526 Advisor (Labor), GC–63, U.S. received the following Natural Gas and the Atomic Energy Act of 1954, 42 Department of Energy, 1000 Pipeline Rate and Refund Report filings: Independence Avenue SW, Washington, U.S.C. 2161 and 2162, as amended. DC 20585, or by fax at (202) 586–0971 DATES: June 14–15, 2018 8:30 a.m. to Filings Instituting Proceedings or by email to john.m.sullivan@ 5:00 p.m. Docket Numbers: RP95–408–085. hq.doe.gov. ADDRESSES: U.S. Department of Energy, Applicants: Columbia Gas Transmission, LLC. SUPPLEMENTARY INFORMATION: This 1000 Independence Ave. SW, Description: Annual Report on information collection request contains: Washington, DC 20585. Sharing Profits from Base Gas Sales with (1) OMB No.: 1910–5143; (2) FOR FURTHER INFORMATION CONTACT: Customers of Columbia Gas Information Collection Request Title: Dana Hunter, Office of RDT&E (NA–11), National Nuclear Security Transmission, LLC. Labor Relations Report; (3) Type of Filed Date: 5/1/18. Request: Renewal; (4) Purpose: The Administration, U.S. Department of Accession Number: 20180501–5441. proposed collection will request Energy, 1000 Independence Ave. SW, Comments Due: 5 p.m. ET 5/14/18. Washington, DC 20585, (202) 287–6287. information from the Department of Docket Numbers: RP18–784–001. Energy M&O and Facilities Management SUPPLEMENTARY INFORMATION: Applicants: Columbia Gas Contractors for contract administration, Background: The DPAC provides Transmission, LLC. management oversight, and cost control. advice and recommendations to the Description: Tariff Amendment: This information is used to ensure that Deputy Administrator for Defense Virginia Power Amended Filing to be Department contractors maintain good Programs on the stewardship and effective 5/1/2018. labor relations and retain a workforce in maintenance of the Nation’s nuclear Filed Date: 5/9/18. accordance with the terms of their deterrent. Accession Number: 20180509–5104. contract and in compliance with Purpose of the Meeting: The purpose Comments Due: 5 p.m. ET 5/21/18. statutory and regulatory requirements as of this meeting of the DPAC is to Docket Numbers: RP18–809–000. identified by contract. The respondents finalize the report on Plutonium and Applicants: Trailblazer Pipeline are Department M&O and Facility discuss the path ahead on new topics. Company LLC.

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Description: § 4(d) Rate Filing: Neg a. Type of Application: Amendment and automate the existing manual Rate 2018–05–09 Citadel A1 to be Application. trashrack rakes. effective 5/9/2018. b. Project No.: 2195–161. l. Locations of the Application: A Filed Date: 5/9/18. c. Date Filed: March 16 and 19, 2018, copy of the application is available for Accession Number: 20180509–5103. and supplemented April 4, 18 and May inspection and reproduction at the Comments Due: 5 p.m. ET 5/21/18. 2, 2018. Commission’s Public Reference Room, Docket Numbers: RP18–762–001. d. Applicant: Portland General located at 888 First Street NE, Room 2A, Applicants: El Paso Natural Gas Electric Company. Washington, DC 20426, or by calling Company, L.L.C. e. Name of Project: Clackamas River (202) 502–8371. This filing may also be Description: Tariff Amendment: Hydroelectric Project. viewed on the Commission’s website at Supplement to Clarifications to Request f. Location: Clackamas River in http://www.ferc.gov/docs-filing/ for Services and Pro Forma Filing to be Clackamas County, Oregon. elibrary.asp. Enter the docket number effective 6/1/2018. g. Filed Pursuant to: Federal Power excluding the last three digits in the Filed Date: 5/10/18. Act, 16 U.S.C. 791a–825r. docket number field to access the Accession Number: 20180510–5001. document. You may also register online Comments Due: 5 p.m. ET 5/22/18. h. Applicant Contact: John Esler, Project Manager, Portland General at http://www.ferc.gov/docs-filing/ Docket Numbers: RP18–810–000. esubscription.asp to be notified via Applicants: Natural Gas Pipeline Electric Company, 121 SW Salmon St., Portland, Oregon 97204. Telephone: email of new filings and issuances Company of America. related to this or other pending projects. Description: § 4(d) Rate Filing: Update (503) 464–8563, or email address: [email protected] For assistance, call 1–866–208- 3676 or Filing—Removal of Expired Agreements email [email protected], for May 2018 to be effective 6/11/2018. i. FERC Contact: Mark Pawlowski, telephone: (202) 502–6052, or email TTY, call (202) 502–8659. A copy is also Filed Date: 5/10/18. available for inspection and address: [email protected]. Accession Number: 20180510–5000. reproduction at the address in item (h) Comments Due: 5 p.m. ET 5/22/18. j. Deadline for filing comments, above. The filings are accessible in the motions to intervene, and protests, is 30 m. Individuals desiring to be included Commission’s eLibrary system by days from the issuance date of this on the Commission’s mailing list should clicking on the links or querying the notice by the Commission. The so indicate by writing to the Secretary docket number. Commission strongly encourages of the Commission. Any person desiring to intervene or electronic filing. Please file comments, n. Comments, Motions to Intervene, or protest in any of the above proceedings motions to intervene, and protests using Protests: Anyone may submit must file in accordance with Rules 211 the Commission’s eFiling system at comments, a motion to intervene, or a and 214 of the Commission’s http://www.ferc.gov/docs-filing/ protest in accordance with the Regulations (18 CFR 385.211 and efiling.asp. Commenters can submit requirements of Rules of Practice and 385.214) on or before 5:00 p.m. Eastern brief comments up to 6,000 characters, Procedure, 18 CFR 385.210, .211, .214. time on the specified comment date. without prior registration, using the In determining the appropriate action to Protests may be considered, but eComment system at http:// take, the Commission will consider all intervention is necessary to become a www.ferc.gov/doc-sfiling/ protests or other comments filed, but party to the proceeding. ecomment.asp. You must include your only those who file a motion to eFiling is encouraged. More detailed name and contact information at the end intervene in accordance with the information relating to filing of your comments. For assistance, Commission’s Rules may become a requirements, interventions, protests, please contact FERC Online Support at party to the proceeding. Any comments, service, and qualifying facilities filings [email protected], (866) motions to intervene, or protests must can be found at: http://www.ferc.gov/ 208–3676 (toll free), or (202) 502–8659 be received on or before the specified docs-filing/efiling/filing-req.pdf. For (TTY). In lieu of electronic filing, please comment date for the particular other information, call (866) 208–3676 send a paper copy to: Secretary, Federal application. (toll free). For TTY, call (202) 502–8659. Energy Regulatory Commission, 888 o. Filing and Service of Responsive Dated: May 10, 2018. First Street NE, Washington, DC 20426. Documents: Any filing must (1) bear in Nathaniel J. Davis, Sr., The first page of any filing should all capital letters the title include docket number P–2195–161. Deputy Secretary. ‘‘COMMENTS’’, ‘‘MOTION TO k. Description of Request: Portland INTERVENE’’, or ‘‘PROTEST’’ as [FR Doc. 2018–10398 Filed 5–15–18; 8:45 am] General Electric Company (licensee) applicable; (2) set forth in the heading BILLING CODE 6717–01–P proposes to: Rebuild the Faraday the name of the applicant and the development powerhouse to improve its project number(s) of the application to DEPARTMENT OF ENERGY seismic stability; remove existing which the filing responds; (3) furnish turbine units 1, 2, 3, 4, and 5 and the name, address, and telephone Federal Energy Regulatory replace them with two more efficient number of the person intervening or Commission Kaplan turbine units; install features to protesting; and (4) otherwise comply prevent the powerhouse from flooding with the requirements of 18 CFR [Project No. 2195–161] during high flow events. The licensee 385.2001 through 385.2005. All comments, motions to intervene, or Portland General Electric Company; would replace the 8-foot diameter protests must set forth their evidentiary Notice of Application Accepted for penstocks for units 1 through 4 and the basis and otherwise comply with the Filing, Soliciting Comments, Motions 9-foot diameter penstock for unit 5 with requirements of 18 CFR 4.34(b). All To Intervene, and Protests two 9-foot diameter penstocks. The licensee would continue to use the 8- comments, motions to intervene, or Take notice that the following foot diameter intakes for units 2 through protests should relate to project works hydroelectric application has been filed 5 and cap intake 1 because it will no which are the subject of the application. with the Commission and is available longer be used. The licensee proposes to Agencies may obtain copies of the for public inspection: replace trashracks for intakes 4 and 5 application directly from the applicant.

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A copy of any motion to intervene or (Orangeburg) regarding certain certain regulatory conditions that the protest must be served upon each regulatory conditions in the JDA that parties agreed to include in the JDA representative of the applicant specified Duke Energy Carolinas and CP&L agreed pursuant to proceedings before North in the particular application. If an to include pursuant to proceedings Carolina Commission, pertain to retail intervener files comments or documents before the North Carolina Public ratemaking and, therefore, should be with the Commission relating to the Utilities Commission (North Carolina removed from the agreement.9 merits of an issue that may affect the Commission). As discussed below, we 4. Orangeburg requested rehearing, responsibilities of a particular resource establish a briefing schedule to develop which the Commission denied in the agency, they must also serve a copy of a better record on which to make a JDA Rehearing Order.10 In that order, the document on that resource agency. determination on these two issues. the Commission affirmed its finding that A copy of all other filings in reference the JDA’s pricing methodology (i.e., to this application must be accompanied I. Background allocating the lowest cost resources to by proof of service on all persons listed A. Case History serve the parties’ native loads, while in the service list prepared by the allocating the higher cost resources to 2. The history of this case is Commission in this proceeding, in off-system sales (non-native load recounted at length in earlier customers)) is just and reasonable.11 In accordance with 18 CFR 4.34(b) and 4 385.2010. Commission orders. addition, the Commission held that this 3. As relevant here, in 2012, Duke Dated: May 9, 2018. methodology does not unduly Energy Corporation (Duke) and Progress discriminate against Orangeburg, which Kimberly D. Bose, Energy, Inc. (Progress) filed on behalf of is neither a native-load customer of Secretary. Duke Energy Carolinas and CP&L a JDA Duke Energy Carolinas nor CP&L.12 [FR Doc. 2018–10442 Filed 5–15–18; 8:45 am] that provided for the joint dispatch of With that determination, the BILLING CODE 6717–01–P Duke Energy Carolinas’ and CP&L’s Commission declined to make a finding respective generation facilities to serve with respect to Orangeburg’s other their loads.5 In accepting the JDA, the arguments, such as the lawfulness of the DEPARTMENT OF ENERGY Commission found that the allocation of North Carolina Commission’s regulatory the lowest energy cost under the JDA to conditions.13 Federal Energy Regulatory the native-load customers of Duke Commission Energy Carolinas and CP&L is not B. D.C. Circuit Remand [Docket Nos. ER12–1338–003; ER12–1347– unduly discriminatory.6 The 5. In Orangeburg v. FERC, the court 004] Commission stated that this finding was stated that, in accepting the JDA, the consistent with Order No. 2000, Commission approved certain Order Establishing Briefing Schedule: wherein it acknowledged that ‘‘in areas provisions that established disparate Duke Energy Corporation Progress without retail choice, state commissions treatment between native-load and non- Energy, Inc.; Carolina Power & Light have the authority to ‘require a utility to native-load wholesale customers.14 The Company sell its lowest cost power to native load, court stated that, ‘‘according to 7 Before Commissioners: Kevin J. McIntyre, as [they] always [have].’ ’’ Also, the Orangeburg, these JDA provisions Chairman; Cheryl A. LaFleur, Neil Commission found that sections 3.2 operate against the backdrop of [the Chatterjee, Robert F. Powelson, and (c)(ii)–(iv) of the JDA,8 which listed North Carolina Commission’s] Richard Glick. functional veto over which wholesale 1. On July 14, 2017, the United States 4 City of Orangeburg, South Carolina, 151 FERC customers fit into the former category. 61,241, PP 3–10 (2015) (dismissing Orangeburg’s The court stated that, for the orders to Court of Appeals for the District of petition for declaratory order); JDA Order, 139 Columbia (D.C. Circuit) issued a FERC 61,193 at PP 2–4; JDA Rehearing Order, 151 survive review, the Commission must decision,1 vacating in part the FERC 61,242 at 2–4. have offer[ed] a valid reason for the Commission’s acceptance of a Joint 5 The JDA provides that the savings from the joint disparity between native load and non- Dispatch Agreement (JDA) between dispatch—in fuel, purchased power, and related native load wholesale customers ‘‘under savings—will go directly to retail and wholesale these circumstances.15 The court found Duke Energy Carolinas, LLC (Duke customers in North Carolina and South Carolina. Energy Carolinas) and Carolina Power & JDA Order, 139 FERC 61,193 at P 6. that the Commission’s exclusive Light Company (CP&L) 2 and remanding 6 Id. P 45. the matter to the Commission for further 7 Id. P 45 (quoting from Regional Transmission costs for retail ratemaking and regulatory Organizations, Order No. 2000, FERC Stats. & Regs. accounting and reporting purposes is preempted consideration. The court found that 31,089 (1999) (Order No. 2000), order on reh’g, and [Duke Energy Carolinas] and [CP&L] will bear certain provisions in the JDA result in Order No. 2000–A, FERC Stats. & Regs. 31,092 the full risk of any preemptive effects of federal law disparate rate treatment between native- (2000), aff’d sub nom. Pub. Util. Dist. No. 1 of with respect to this Agreement. Snohomish County, Washington v. FERC, 272 F.3d JDA Order, 139 FERC 61,193 at P 23. load and non-native-load wholesale 9 customers and that the Commission had 607 (D.C. Cir. 2001)). Id. P 37. Also, the Commission noted that 8 Section 3.2 (c)(ii)–(iv) of the JDA states: ‘‘beyond requiring the removal of these provisions not offered a valid reason for such a (ii) Neither [Duke Energy Carolinas] nor [CP&L] from the JDA, we offer no view on the North disparity.3 Also, the court found that the may make or incur a charge under this Agreement Carolina Commission’s authority to impose or apply Commission failed to sufficiently except in accordance with North Carolina law and such requirements in its proceeding.’’ Id. 10 respond to several arguments raised by the rules, regulations and orders of the [North JDA Rehearing Order, 151 FERC 61,242 at P 1. 11 Id. PP 12–13. the City of Orangeburg, South Carolina Carolina Commission] promulgated thereunder; (iii) Neither [Duke Energy Carolinas] nor [CP&L] 12 Id. at P 13. may seek to reflect in its North Carolina retail rates 13 Id. 1 Orangeburg, South Carolina v. FERC, 862 F.3d (i) any costs incurred under this Agreement 14 Orangeburg v. FERC, 862 F.3d at 1074, 1081 1071 (D.C. Cir. 2017) (Orangeburg v. FERC). exceeding the amount allowed by the [North (wholesale customers are treated differently based 2 Duke Energy Corp., 139 FERC 61,193 (2012) Carolina Commission] or (ii) any revenue level on their native-load status.... The JDA divides (JDA Order), order denying reh’g, 151 FERC 61,242 earned under the Agreement other than the amount the world into two categories of customers: Native (2015) (JDA Rehearing Order) (together, JDA imputed by the [North Carolina Commission]; and load and non-native load. Only native-load Orders). (iv) Neither [Duke Energy Carolinas] nor [CP&L] customers—including wholesale customers—enjoy 3 Orangeburg v. FERC, 862 F.3d at 1084 (citing will assert in any forum that the [North Carolina access to the most reliable and lowest cost power.’’). Black Oak Energy, LLC v. FERC, 725 F.3d 230, 239 Commission’s] authority to assign, allocate, make 15 Id. at 1084 (citing Black Oak Energy, 725 F.3d (D.C. Cir. 2013) (Black Oak)). pro forma adjustments to or disallow revenues or at 239) (internal quotation marks omitted).

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reliance on Order No. 2000 for of non-native load sales and how the DEPARTMENT OF ENERGY approving the JDA’s disparate treatment JDA would treat such a sale between the and responding to Orangeburg’s utilities. Federal Energy Regulatory Commission overlapping Federal Power Act, (b) Do the North Carolina preemption, and Commerce Clause Commission’s regulatory conditions 20 [Docket No. RD18–4–000] arguments was untenable for a number impermissibly interfere with this of reasons.16 The court concluded that Commission Information Collection Commission’s jurisdiction over because the Commission [has not] Activities (FERC–725G); Comment wholesale ratemaking, in violation of offer[ed] a valid reason for the disparity, 21 Request; Revision the court could not affirm [the the Federal Power Act or the AGENCY: Commission’s] approval of the JDA Commerce Clause of the United States Federal Energy Regulatory 22 provisions that establish disparate Constitution? Commission, Department of Energy. treatment of native-load and non-native- 8. We require Duke Energy Carolinas ACTION: Notice of revised information load wholesale customers, and and CP&L to submit—and others may collection and request for comments. incorporates [the North Carolina submit—initial briefs on or before 45 SUMMARY: In compliance with the Commission’s] potentially unlawful days from the date of this order. Reply requirements of the Paperwork 17 regulatory regime. Accordingly, the briefs must be submitted on or before 30 Reduction Act of 1995, the Federal court vacated in part the JDA Orders days following the due date of the initial Energy Regulatory Commission and remanded the matter to the briefs. Any person who is not currently (Commission or FERC) is soliciting Commission for further explanation a party to the proceeding and who public comments on revisions to the 18 regarding its approval of the JDA. wishes to submit a brief must file a information collection, FERC–725G II. Discussion notice of intervention or motion to (Reliability Standards for the Bulk intervene, as appropriate. Power System: PRC Reliability 6. We establish a briefing schedule to Standards) in Docket No. RD18–4–000 allow the parties and other interested The Commission Orders and will be submitting FERC–725G to persons to address the two issues noted (A) Duke Energy Carolinas and CP&L the Office of Management and Budget below that the D.C. Circuit raised in its (OMB) for review of the information are required to submit, and other parties decision. Further briefing on these collection requirements. issues will help develop a better record are hereby permitted to submit initial DATES: Comments on the collection of for the Commission to respond to the briefs on or before forty-five (45) days of information are due July 16, 2018. court’s directive to reconsider these the date of this order, as discussed in issues. the body of this order. ADDRESSES: You may submit comments 7. We request briefing on the identified by Docket No. RD18–4–000 (B) Parties are hereby permitted to file by either of the following methods: following issues, in particular: reply briefs on or before thirty (30) days • (a) Is the JDA’s disparate treatment of eFiling at Commission’s Website: of the date of filing of initial briefs. native and non-native load wholesale http://www.ferc.gov/docs-filing/ customers unduly discriminatory or (C) All interested persons who wish to efiling.asp. • Mail/Hand Delivery/Courier: preferential? In answering this question, submit briefs but that are not currently Federal Energy Regulatory Commission, please address the following: parties to Docket Nos. ER12–1338–003 (i) Explain why the JDA treats native or ER12–1347–004 may submit notices Secretary of the Commission, 888 First and non-native load wholesale of intervention or motions to intervene, Street NE, Washington, DC 20426. Instructions: All submissions must be customers disparately and whether the as appropriate, within 21 days of the formatted and filed in accordance with differences between these customers date of this order. The briefing schedule submission guidelines at: http:// justify the disparate treatment. described in Ordering Paragraphs (A) www.ferc.gov/help/submission- (ii) Specify in detail the contractual and (B) will apply to such persons. guide.asp. For user assistance, contact provisions in current or future (D) The Secretary is hereby directed to FERC Online Support by email at wholesale contracts that would qualify publish this order in the Federal [email protected], or by phone a wholesale customer for native load at: (866) 208–3676 (toll-free), or (202) treatment under the JDA,19 as well as Register. 502–8659 for TTY. By the Commission. any contractual provisions that would Docket: Users interested in receiving disqualify a wholesale customer for Issued: May 10, 2018. automatic notification of activity in this native load treatment under the JDA. Nathaniel J. Davis, Sr., docket or in viewing/downloading (iii) Explain why wholesale sales Deputy Secretary. comments and issuances in this docket between Duke Energy Carolinas and may do so at http://www.ferc.gov/docs- CP&L are excluded from the definition [FR Doc. 2018–10402 Filed 5–15–18; 8:45 am] BILLING CODE 6717–01–P filing/docs-filing.asp. FOR FURTHER INFORMATION CONTACT: 16 Id. at 1085–1087. 17 Id. at 1087. Ellen Brown may be reached by email 18 Id. at [email protected], telephone 19 The JDA provides that Native Load Customers at (202) 502–8663, and fax at (202) 273– include wholesale customers that have native load 0873. served by Duke Energy Carolinas or CP&L, for 20 Here, we are referring to the regulatory SUPPLEMENTARY INFORMATION: which Duke Energy Carolinas or CP&L has an conditions that were in section 3.2 (c)(ii)–(iv) of the obligation pursuant to current or future wholesale JDA, which the JDA Order required be removed. Title: FERC–725G, Reliability contracts, for the length of such contracts, to engage 21 16 U.S.C. 824e(a) (2012); see, e.g., Nantahala Standards for the Bulk Power System: in planning and to sell and deliver electric capacity Power and Light Company v. Thornburg, 476 U.S. PRC Reliability Standards. and energy in a manner comparable to the OMB Control No.: 1902–0252. [utilities’] service to its Retail Native Load 953 (1986); Mississippi Power & Light Company v. Customers. Duke Energy Carolinas, FERC Electric Mississippi ex rel. Moore, 487 US 354 (1988). Type of Request: Revision of FERC– Tariff, Rate Schedule No. 341 at Article I, 22 U.S. Const. art. 1, 8, cl. 3; see, e.g., New 725G information collection Definitions. England Power Company, 455 U.S. 331 (1982). requirements.

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Abstract: The information collected damage to the associated equipment. NERC proposed that PRC–025–2 shall by the FERC–725G is required to Proposed Reliability Standard PRC– become effective on the first day of the implement the statutory provisions of 025–2 improves upon currently- first calendar quarter after the effective section 215 of the Federal Power Act effective Reliability Standard PRC–025– date of the applicable governmental (FPA) (16 U.S.C. 824o). Section 215 of 1 by addressing certain relay setting authority’s order approving the the FPA buttresses the Commission’s application issues and by clarifying standard. NERC’s Implementation Plan efforts to strengthen the reliability of the certain terminology and references. proposed phased-in compliance dates interstate grid. NERC requested that the Commission after the effective date of Reliability On March 16, 2018, the North approve the proposed Reliability Standard PRC–025–2.1 American Electric Reliability Standard and find that the proposed Corporation (NERC, the Commission- standard is just, reasonable, not unduly On May 2, 2018, the Commission approved ERO) submitted for discriminatory or preferential, and in approved Reliability Standard PRC– Commission approval proposed the public interest. NERC also requested 025–2 and the retirement of PRC–025– Reliability Standard PRC–025–2, that the Commission approve: (i) The 1. Generator Relay Loadability. The PRC– associated Implementation Plan; (ii) the Type of Respondents: Generator 025–2 Reliability Standard addresses associated Violation Risk Factors (VRFs) Owner (GO), Transmission Owner (TO), setting load-responsive protective relays and Violation Severity Levels (VSLs), and Distribution Provider (DP). associated with generation facilities at a which remain unchanged from PRC– 2 level to prevent unnecessary tripping of 025–1; and (iii) the retirement of Estimate of Annual Burden : Details generators during a system disturbance currently-effective Reliability Standard follow on the changes in Docket No. for conditions that do not pose a risk of PRC–025–1. RD18–4–000 to FERC–725G. FERC–725G, MANDATORY RELIABILITY STANDARD PRC–025–2, IN DOCKET NO. RD18–4–000

Annual Average Total annual Annual burden hours burden hours and Cost per Entity Number of number of number of and cost respondent respondents 3 responses per total annual cost responses per response 4 ($) respondent ($) ($)

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) = (6)

(One-time) Review & documentation 994 GO/TO/DP ... 1 994 20 hrs.; $1,298.20 19,880 hours; $1,298.20 of relay settings to ensure compli- $1,290,410.80. ance. (On-going) Record Retention (of 994 GO/TO/DP ... 1 994 2 hrs.; $62.32 ...... 1,988 hours; $62.32 compliance records for R1 and $61,946.08. M1, for 3 years or until mitigation complete).

FERC–725G, MANDATORY RELIABILITY STANDARD PRC–025–1, RETIREMENT IN DOCKET NO. RD18–4–000

Annual Average Number of number of Annual burden hours Total annual burden hours Cost per Entity number of and total annual cost respondent 6 respondents responses per and cost 5 respondent responses ($) ($) ($)

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) (5) ÷ (1) = (6)

(One-time) Review & docu- 1,019 GO/ 1 1,019 20 hrs.; 20,380 hours; $1,192.40 (reduction). mentation of relay set- DP/TO. $1,192.40 $1,215,055.60 (reduction). tings to ensure compli- (reduction). ance, (reduction). (On-going) Record Reten- 1,019 GO/ 1 1,019 2 hrs.; $57.90 2,038 hours; $59,000.10 $57.90 (reduction). tion (of compliance DP/TO. (reduction). (reduction). records for R1 and M1, for 3 years or until mitiga- tion complete) (reduction).

1 See NERC’s Implementation Plan at https:// these numbers incorporate some double counting. 5 GO = Generator Owner, DP = Distribution www.nerc.com/pa/Stand/Project%20201604 The number of unique entities responding will be Provider, TO = Transmission Owner, each of which %20Modifications%20to%20PRC0251%20DL/ approximately 994 entities registered as a applies load-responsive protective relays at the Project_2016_04_Implementation_Plan_Clean_ transmission owner, a distribution provider, or a terminals of the Elements listed in the proposed generator owner that is also a transmission owner 01092018.pdf. standard at section 3.2 (Facilities). 2 Burden is defined as the total time, effort, or and/or a distribution owner. This estimate assumes all of the unique entities apply load-responsive 6 The estimated hourly costs (salary plus benefits) financial resources expended by persons to protective relays. are based on Bureau of Labor Statistics (BLS) generate, maintain, retain, or disclose or provide 4 information May 2014, (at http://bls.gov/oes/ information to or for a Federal agency. For further The hourly cost (for salary plus benefits) uses the figures from the Bureau of Labor Statistics, May current/naics3_221000.htm#17-0000) for an explanation of what is included in the information 2017, for two positions involved in the reporting collection burden, refer to 5 Code of Federal electrical engineer ($59.62/hour for review and and recordkeeping requirements. These figures Regulations 1320.3. documentation), and for a file clerk ($28.95/hour for include salary (https://www.bls.gov/oes/current/ record retention). Those figures (and the number of 3 According to the NERC compliance registry as naics2_22.htm) benefits http://www.bls.gov/ respondents) were used when the standard was of March 9, 2018, NERC has registered 415 news.release/ecec.nr0.htm) and are: Engineer: distribution providers (DP), 985 generator owners $64.91/hour, and File Clerk: $31.16/hour. Hourly approved and added to the OMB inventory. Hourly (GO) and 336 transmission owners (TO). However, cost for the engineer are used for the one-time costs, cost for the engineer are used for the one-time costs, under NERC’s compliance registration program, and hourly cost for the file clerk are used for the and hourly cost for the file clerk are used for the entities may be registered for multiple functions, so ongoing record retention. ongoing record retention.

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Net Effect to Burden for FERC–725G: distribution assets from CPG into UGIU proceeding can ask for court review of Due to the retirement of PRC–025–1 and pursuant to a corporate merger, all as Commission orders in the proceeding. implementation of PRC–025–2, the more fully set forth in the application However, a person does not have to number of respondents is reduced by which is on file with the Commission intervene in order to have comments 25, and the number of annual burden and open to public inspection. The considered. The second way to hours is reduced by 550 hours. (The net filing may also be viewed on the web at participate is by filing with the changes are due to a change in the http://www.ferc.gov using the eLibrary Secretary of the Commission, as soon as number of affected entities on the NERC link. Enter the docket number excluding Registry.) The burden per respondent the last three digits in the docket possible, an original and two copies of for PRC–025–2 remains 22 hours (total number field to access the document. comments in support of or in opposition for both one-time and ongoing burden, For assistance, contact FERC at to this project. The Commission will similar to the now-retired PRC–025–1). [email protected] or call consider these comments in Comments: Comments are invited on: toll-free, (866) 208–3676 or TYY, (202) determining the appropriate action to be (1) Whether the collection of 502–8659. taken, but the filing of a comment alone information is necessary for the proper Any questions regarding this will not serve to make the filer a party performance of the functions of the application should be directed to Frank to the proceeding. The Commission’s Commission, including whether the Merkle, Senior Counsel, UGI rules require that persons filing information will have practical utility; Corporation, Box 858, Valley Forge, comments in opposition to the project (2) the accuracy of the agency’s estimate Pennsylvania 19482; or by email at provide copies of their protests only to of the burden and cost of the collection [email protected]. the party or parties directly involved in of information, including the validity of Pursuant to section 157.9 of the the protest. the methodology and assumptions used; Commission’s rules (18 CFR 157.9), Persons who wish to comment only (3) ways to enhance the quality, utility within 90 days of this Notice, the on the environmental review of this and clarity of the information collection; Commission staff will either: Complete project should submit an original and and (4) ways to minimize the burden of its environmental assessment (EA) and two copies of their comments to the the collection of information on those place it into the Commission’s public Secretary of the Commission. who are to respond, including the use record (eLibrary) for this proceeding; or Environmental commentors will be of automated collection techniques or issue a Notice of Schedule for placed on the Commission’s other forms of information technology. Environmental Review. If a Notice of environmental mailing list, will receive Schedule for Environmental Review is Dated: May 9, 2018. copies of the environmental documents, issued, it will indicate, among other Kimberly D. Bose, and will be notified of meetings Secretary. milestones, the anticipated date for the Commission staff’s issuance of the EA associated with the Commission’s [FR Doc. 2018–10443 Filed 5–15–18; 8:45 am] for this proposal. The filing of the EA environmental review process. BILLING CODE 6717–01–P in the Commission’s public record for Environmental commentors will not be this proceeding or the issuance of a required to serve copies of filed documents on all other parties. DEPARTMENT OF ENERGY Notice of Schedule for Environmental Review will serve to notify federal and However, the non-party commentors Federal Energy Regulatory state agencies of the timing for the will not receive copies of all documents Commission completion of all necessary reviews, and filed by other parties or issued by the the subsequent need to complete all Commission (except for the mailing of [Docket No. CP18–477–000] federal authorizations within 90 days of environmental documents issued by the Notice of Application: UGI Central the date of issuance of the Commission Commission) and will not have the right Penn Gas, Inc. and UGI Utilities, Inc. staff’s EA. to seek court review of the There are two ways to become Commission’s final order. Take notice that on May 2, 2018, UGI involved in the Commission’s review of The Commission strongly encourages Central Penn Gas, Inc. (CPG), and UGI this project. First, any person wishing to electronic filings of comments, protests Utilities, Inc. (UGIU) (collectively, obtain legal status by becoming a party and interventions in lieu of paper using Applicants), both wholly-owned direct to the proceedings for this project the eFiling link at http://www.ferc.gov. subsidiaries of UGI Corporation and should, on or before the comment date Persons unable to file electronically both currently located at 2525 N. 12th stated below, file with the Federal Street, Reading, Pennsylvania 19605, Energy Regulatory Commission, 888 should submit an original and five filed in Docket No. CP18–477–000 an First Street NE, Washington, DC 20426, copies of the protest or intervention to application pursuant to sections 7(b) a motion to intervene in accordance the Federal Energy Regulatory and 7(f) of the Natural Gas Act (NGA), with the requirements of the Commission, 888 First Street NE, and Part 157 of the Commission’s Commission’s Rules of Practice and Washington, DC 20426. regulations. Specifically, the Applicants Procedure (18 CFR 385.214 or 385.211) Comment Date: 5:00 p.m. Eastern time request: (i) Authority to abandon certain and the Regulations under the NGA (18 on May 31, 2018. limited jurisdiction certificates for CFR 157.10). A person obtaining party Dated: May 10, 2018. transportation services held by CPG status will be placed on the service list pertaining to its Maryland local gas maintained by the Secretary of the Nathaniel J. Davis, Sr., distribution system located in Maryland Commission and will receive copies of Deputy Secretary. and Pennsylvania; and (ii) for transfer of all documents filed by the applicant and [FR Doc. 2018–10400 Filed 5–15–18; 8:45 am] CPG’s service area determination to by all other parties. A party must submit BILLING CODE 6717–01–P UGIU. The Applicants state that the five copies of filings made with the requested authorizations are required to Commission and must mail a copy to implement aspects of the pending the applicant and to every other party in transfer of the local natural gas the proceeding. Only parties to the

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DEPARTMENT OF ENERGY at: (866) 208–3676 (toll-free), or (202) hardcopy or electronically through the 502–8659 for TTY. Commission’s eFiling system. Federal Energy Regulatory Docket: Users interested in receiving Commission FERC–65A (Exemption Notification of automatic notification of activity in this Holding Company Status) [Docket No. IC18–6–000] docket or in viewing/downloading comments and issuances in this docket While noting the previously outlined Commission Information Collection may do so at http://www.ferc.gov/docs- requirements of the FERC–65, the Activities: (FERC–65, FERC–65a, filing/docs-filing.asp. Commission has allowed for an exemption from the requirement of FERC–65b, FERC–725v) Consolidated FOR FURTHER INFORMATION CONTACT: Comment Request; Extension providing the Commission with a Ellen Brown may be reached by email FERC–65 if the books, accounts, AGENCY: Federal Energy Regulatory at [email protected], telephone memoranda, and other records of any Commission, DOE. at (202) 502–8663, and fax at (202) 273– person are not relevant to the 0873. ACTION: Notice of information collection jurisdictional rates of a public utility or and request for comments. SUPPLEMENTARY INFORMATION: natural gas company; or if any class of Title: FERC–65 (Notice of Holding transactions is not relevant to the SUMMARY: In compliance with the Company Status), FERC–65A jurisdictional rates of a public utility or requirements of the Paperwork (Exemption Notification of Holding natural gas company. Persons seeking Reduction Act of 1995, the Federal Company Status), and FERC–65B this exemption file the FERC–65A, Energy Regulatory Commission (Waiver Notification of Holding which must include a form of notice (Commission or FERC) is soliciting Company Status). suitable for publication in the Federal public comment on the information OMB Control No.: 1902–0218. Register. Those who file a FERC–65A in collections, FERC–65 (Notice of Holding good faith will have a temporary Company Status), FERC–65A Type of Request: Three-year extension of the FERC–65, FERC–65A and FERC– exemption upon filing, after 60 days if (Exemption Notification of holding the Commission has taken no action, the Company Status), and FERC–65B 65B information collection requirements with no changes to the current reporting exemption will be deemed granted. (Waiver Notification of Holding Commission regulations within 18 CFR Company Status), and FERC–725V requirements. Abstract: The Pursuant to section 366.3 describe the criteria in more (Mandatory Reliability Standards: COM specificity. Reliability Standards) which will be 366.4 of the Commission’s rules and submitted to the Office of Management regulations, persons who meet the 1. FERC–65B (Waiver Notification of and Budget (OMB) for a review of the definition of a holding company shall Holding Company Status) provide the Commission notification of information collection requirements. If an entity meets the requirements in holding company status. DATES: Comments on the collection of 18 CFR 366.3(c), they may file a FERC– information are due June 15, 2018. The FERC–65 is a one-time 65B waiver notification pursuant to the informational filing outlined in the ADDRESSES: Comments filed with OMB, procedures outlined in 18 CFR 366.4. Commission’s regulations at 18 Code of Specifically, the Commission waives the identified by OMB Control No. 1902– Federal Regulations (CFR) 366.4. The 0218 and OMB Control No. 1902–0277, requirement of providing it with a FERC–65 must be submitted within 30 FERC–65 for any holding company with should be sent via email to the Office of days of becoming a holding company.1 Information and Regulatory Affairs: respect to one or more of the following: _ While the Commission does not require (1) Single-state holding company oira [email protected]. Attention: the information to be reported in a Federal Energy Regulatory Commission systems; (2) holding companies that specific format, the filing needs to own generating facilities that total 100 Desk Officer. The Desk Officer may also consist of the name of the holding be reached via telephone at 202–395– MW or less in size and are used company, the name of public utilities, fundamentally for their own load or for 8528. the name of natural gas companies in A copy of the comments should also sales to affiliated end-users; or (3) the holding company system, and the be sent to the Commission, in Docket investors in independent transmission- names of service companies. In No. IC18–6–000 by either of the only companies. Filings may be made in addition, the Commission requires the following methods: hardcopy or electronically through the filing to include the names of special- • eFiling at Commission’s website: Commission’s website. purpose subsidiaries (which provide http://www.ferc.gov/docs-filing/ Type of Respondent: Public utility non-power goods and services) and the efiling.asp companies, natural gas companies, names of all affiliates and subsidiaries • Mail/Hand Delivery/Courier: electric wholesale generators, foreign (and their corporate interrelationship) to Federal Energy Regulatory Commission, utility holding companies. each other. Filings may be submitted in Secretary of the Commission, 888 First Estimate of Annual Burden: 2 The Street NE, Washington, DC 20426. Commission estimates the annual public 1 Persons that meet the definition of a holding reporting burden for the information Instructions: All submissions must be company as provided by § 366.1 as of February 8, formatted and filed in accordance with 2006 shall notify the Commission of their status as collection as: submission guidelines at: http:// a holding company no later than June 15, 2006. www.ferc.gov/help/submission- Holding companies formed after February 8, 2006 2 Burden is defined as the total time, effort, or shall notify the Commission of their status as a financial resources expended by persons to guide.asp. For user assistance contact holding company, no later than the latter of June generate, maintain, retain, or disclose or provide FERC Online Support by email at 15, 2006 or 30 days after they become holding information to or for a Federal agency. Refer to 5 [email protected], or by phone companies. CFR 1320.3 for additional information.

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FERC–65 (NOTIFICATION OF HOLDING COMPANY STATUS), FERC–65A (EXEMPTION NOTIFICATION OF HOLDING COMPANY STATUS), AND FERC–65B (WAIVER NOTIFICATION OF HOLDING COMPANY STATUS)

Annual Average Total annual Number of number of Total number burden and burden hours Cost per respondents responses per of responses cost per and total respondent respondent response 3 annual cost

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) ($) (5) ÷ (1)

FERC–65 ...... 12 1 12 3; $229.50 36; $2,754 $229.50 FERC–65A ...... 4 1.25 5 1; $76.50 5; $382.50 $95.63 FERC–65B ...... 4 1.75 7 1; $76.50 7; $535.50 $133.88

Total ...... 24 ...... 48; $3,672 ......

Title: FERC–725V, Mandatory Reliability Standard COM–001–3 as evidence of testing of the Alternate Reliability Standards: COM Reliability reflects revisions developed under Interpersonal Communication facilities. Standards. Project 2015–07 Internal COM–002–4 requires balancing OMB Control No.: 1902–0277. Communications Capabilities, in authorities, distribution providers, Type of Request: Three-year extension compliance with the Commission’s reliability coordinators, transmission of the FERC–725V information directive in Order No. 888 that NERC operators, and generator operators to collection requirements with no changes ‘‘develop modifications to COM–001–2, develop and maintain documented to the current reporting requirements. or develop a new standard, to address communication protocols, and to be Abstract: On August 15, 2016, the the Commission’s concerns regarding able to provide evidence of training on North American Electric Reliability ensuring the adequacy of internal the protocols and of their annual Corporation (NERC) filed a petition for communications capability whenever assessment of the protocols. Commission approval, pursuant to internal communications could directly Additionally, all applicable entities section 215(d)(1) of the Federal Power (balancing authorities, reliability 4 5 affect the reliability opera. Act (‘‘FPA’’) and Section 39.5 of the coordinators, transmission operators, Reliability Standards COM–001–2 and Federal Energy Regulatory generator operators, and distribution COM–002–4 do not require responsible Commission’s regulations, for providers) must be able to provide entities to file information with the Reliability Standard COM–001–3 evidence of three-part communication Commission. COM–001–2 requires that (Communications), the associated when issuing or receiving an Operating transmission operators, balancing Implementation Plan, retirement of Instruction during an Emergency. currently-effective Reliability Standard authorities, reliability coordinators, COM–001–2.1, and Violation Risk distribution providers, and generator Type of Respondents: Public utilities. Factors (‘‘VRFs’’) and Violation Severity operators must maintain documentation Estimate of Annual Burden: 6 The Levels (‘‘VSLs’’) associated with new of Interpersonal Communication Commission estimates the annual public Requirements R12 and R13 in capability and designation of Alternate reporting burden for the information Reliability Standard COM–001–3. Interpersonal Communication, as well collection as:

FERC–725V, MANDATORY RELIABILITY STANDARDS: COM RELIABILITY STANDARDS

Annual Total annual burden Number of number of Total number Average burden and Cost per 7 hours & total annual respondents responses per of responses cost per response cost respondent respondent

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) ($) (5) ÷ (1)

(One-time) 8 Devel- 201 (BA, RC & TOP) 1 201 8 hrs. & $288 ...... 1,608 hrs. & $57,888 288 opment of Com- munication Pro- tocols [COM– 002–4 R1]. (On-going) 9 Main- 1,180 (DP & GOP) .... 1 1,180 4 hrs. & $144 ...... 4,720 hrs. & $169,920 144 tain evidence of Interpersonal Communication capability [COM–001–2 R7 and R8].

3 The estimates for cost per response are derived We assume for FERC–65, FERC–65A and FERC–65B persons to generate, maintain, retain, or disclose or using the following formula: 2017 Average Burden that respondents earn at a similar rate. provide information to or for a Federal agency. For Hours per Response * $76.50 per Hour = Average 4 16 U.S.C. 824o (2012). further explanation of what is included in the Cost per Response. The hourly cost figure of $76.50 5 18 CFR 39.5 (2015). information collection burden, reference 5 Code of is the average FERC employee wage plus benefits. 6 The Commission defines burden as the total Federal Regulations 1320.3. time, effort, or financial resources expended by

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FERC–725V, MANDATORY RELIABILITY STANDARDS: COM RELIABILITY STANDARDS—Continued

Annual Total annual burden Number of number of Total number Average burden and Cost per 7 hours & total annual respondents responses per of responses cost per response cost respondent respondent

(1) (2) (1) * (2) = (3) (4) (3) * (4) = (5) ($) (5) ÷ (1)

(On-going) Main- 201 (BA, RC & TOP) 1 201 8 hrs. & $288 ...... 1,608 hrs. & $57,888 288 tain evidence of training and as- sessments [COM–002–4 R2, R4, R5 and R6]. (On-going) Main- 1,880 (DP & GOP) .... 1 1,180 8 hrs. & $288 ...... 15,040 hrs. & 288 tain evidence of $541,440. training [COM– 002–4 R3 and R6].

Total ...... 2,762 ...... 22,976 hrs. & ...... $827,136.

Comments: Comments are invited on: DEPARTMENT OF ENERGY free at (866) 208–3676, or TTY, contact (1) Whether the collection of (202) 502–8659. information is necessary for the proper Federal Energy Regulatory Any questions concerning this prior performance of the functions of the Commission notice request should be directed to Commission, including whether the Cindy Thompson, Manager, Regulatory, information will have practical utility; [Docket No. CP18–384–000] Southern Star Central Gas Pipeline, Inc., (2) the accuracy of the agency’s estimate 4700 Highway 56, Owensboro, Notice of Request Under Blanket of the burden and cost of the collection Kentucky 42301, by phone (270) 852– Authorization: Southern Star Central 4655, or by email Cindy.C.Thompson@ of information, including the validity of Gas Pipeline, Inc. sscgp.com. the methodology and assumptions used; Pursuant to section 157.9 of the (3) ways to enhance the quality, utility Take notice that on April 30, 2018, Commission’s rules, 18 CFR 157.9, and clarity of the information collection; Southern Star Central Gas Pipeline, Inc. within 90 days of this Notice the and (4) ways to minimize the burden of (Southern Star), 4700 Highway 56, Commission staff will either: Complete the collection of information on those Owensboro, Kentucky 42301, filed in its environmental assessment (EA) and who are to respond, including the use the above referenced docket, a prior place it into the Commission’s public of automated collection techniques or notice request pursuant to sections record (eLibrary) for this proceeding; or other forms of information technology. 157.205, 157.208, 157.210, 157.211, and issue a Notice of Schedule for 157.216 of the Commission’s regulations Dated: May 10, 2018. Environmental Review. If a Notice of under the Natural Gas Act (NGA) and Schedule for Environmental Review is Nathaniel J. Davis, Sr., Southern Star’s blanket certificate issued, it will indicate, among other Deputy Secretary. issued in Docket No. CP82–479–000, for milestones, the anticipated date for the [FR Doc. 2018–10401 Filed 5–15–18; 8:45 am] authorization to construct, own, and Commission staff’s issuance of the EA BILLING CODE 6717–01–P operate a total of approximately 14.27 for this proposal. The filing of the EA miles in seven non-contiguous 20- and in the Commission’s public record for 24-inch-diameter pipeline segments, this proceeding or the issuance of a and subsequently to abandon the Notice of Schedule for Environmental equivalent existing segments of Line V Review will serve to notify federal and in Oklahoma and Logan Counties, state agencies of the timing for the Oklahoma (Line V Replacement Project). completion of all necessary reviews, and The replacement is required due to the the subsequent need to complete all age and condition of the acetylene- federal authorizations within 90 days of welded pipe and to enable in-line the date of issuance of the Commission assessments of the Line V pipeline, all staff’s EA. 7 The loaded hourly wage figure (includes as more fully set forth in the application Any person may, within 60 days after benefits) is based on the occupational categories for which is on file with the Commission the issuance of the instant notice by the 2016 found on the Bureau of Labor Statistics and open to public inspection. Commission, file pursuant to Rule 214 website (http://www.bls.gov/oes/current/naics2_ The filing may also be viewed on the of the Commission’s Procedural Rules 22.htm): web at http://www.ferc.gov using the (18 CFR 385.214) a motion to intervene Electrical Engineer (Occupation Code: 17–2071): eLibrary link. Enter the docket number or notice of intervention. Any person $68.12 (review and documentation). excluding the last three digits in the filing to intervene or the Commission’s Office and Administrative Support (Occupation Code: 43–0000): $40.89 ($68.12 + 40.89 = 109.01 ÷ docket number field to access the staff may, pursuant to section 157.205 of 3 = $36.34. This figure is rounded to $36.00 for use document. For assistance, please contact the Commission’s Regulations under the in collection FERC–725V for calculating wage FERC Online Support at NGA (18 CFR 157.205) file a protest to figures in this renewal calculation. [email protected] or toll the request. If no protest is filed within

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the time allowed therefore, the proposed Description: Tariff Amendment: Docket Numbers: ER18–1565–000. activity shall be deemed to be Amended GIA Santa Ana Storage Applicants: PJM Interconnection, authorized effective the day after the Project SA No. 1006 to be effective L.L.C. time allowed for protest. If a protest is 3/14/2018. Description: Tariff Cancellation: filed and not withdrawn within 30 days Filed Date: 5/10/18. Notice of Cancellation of Service after the time allowed for filing a Accession Number: 20180510–5111. Agreement No. 3764; Queue No. Y3–029 protest, the instant request shall be Comments Due: 5 p.m. ET 5/31/18. to be effective 6/4/2014. treated as an application for Docket Numbers: ER18–1219–001. Filed Date: 5/10/18. authorization pursuant to section 7 of Applicants: Midcontinent Accession Number: 20180510–5067. the NGA. Independent System Operator, Inc. Comments Due: 5 p.m. ET 5/31/18. The Commission strongly encourages Description: Tariff Amendment: Docket Numbers: ER18–1566–000. electronic filings of comments, protests, 2018–05–08_SA 3105 EMI–EMI Applicants: Essential Power Rock and interventions via the internet in lieu Substitute GIA (J477) to be effective Springs, LLC, PJM Interconnection, of paper. See 18 CFR 385.2001(a)(1)(iii) 3/15/2018. L.L.C. and the instructions on the Filed Date: 5/8/18. Description: eTariff filing per 1450: Commission’s website (www.ferc.gov) Accession Number: 20180508–5195. Essential Power submits revisions to under the ‘‘e-Filing’’ link. Comments Due: 5 p.m. ET 5/15/18. OATT Att H–23 re Tax Reform EL18–97 Dated: May 10, 2018. Docket Numbers: ER18–1292–001. to be effective 6/1/2018. Nathaniel J. Davis, Sr., Applicants: Southern California Filed Date: 5/10/18. Deputy Secretary. Edison Company. Accession Number: 20180510–5068. [FR Doc. 2018–10399 Filed 5–15–18; 8:45 am] Description: Tariff Amendment: Comments Due: 5 p.m. ET 5/31/18. BILLING CODE 6717–01–P Amended LGIA Desert Quartzite, LLC— Docket Numbers: ER18–1567–000. Quartz 3 Solar Project—Revised ITCC to Applicants: South Carolina Electric & be effective 4/4/2018. Gas Company. DEPARTMENT OF ENERGY Filed Date: 5/10/18. Description: Compliance filing: Order Accession Number: 20180510–5095. 842 Attch M and N to be effective 5/15/ Federal Energy Regulatory Comments Due: 5 p.m. ET 5/31/18. Commission 2018. Docket Numbers: ER18–1297–001. Filed Date: 5/10/18. Applicants: Southern California Combined Notice of Filings #1 Accession Number: 20180510–5104. Edison Company. Comments Due: 5 p.m. ET 5/31/18. Take notice that the Commission Description: Tariff Amendment: Docket Numbers: ER18–1568–000. received the following exempt Amended LGIA—Revised ITCC Applicants: Southwest Power Pool, wholesale generator filings: Palmdale Energy, LLC to be effective Inc. Docket Numbers: EG18–84–000. 6/4/2018. Filed Date: 5/10/18. Description: § 205(d) Rate Filing: Applicants: Antelope Expansion 2, Market Import Service Tariff Revisions LLC. Accession Number: 20180510–5097. Comments Due: 5 p.m. ET 5/31/18. to be effective 7/10/2018. Description: Self-Certification of EWG Filed Date: 5/10/18. Antelope Expansion 2, LLC. Docket Numbers: ER18–1562–000. Accession Number: 20180510–5163. Filed Date: 5/10/18. Applicants: Southwest Power Pool, Comments Due: 5 p.m. ET 5/31/18. Accession Number: 20180510–5119. Inc. Comments Due: 5 p.m. ET 5/31/18. Description: Compliance filing: Order The filings are accessible in the Take notice that the Commission No. 842 Compliance Filing to be Commission’s eLibrary system by received the following electric rate effective 5/15/2018. clicking on the links or querying the filings: Filed Date: 5/9/18. docket number. Any person desiring to intervene or Docket Numbers: ER17–157–003. Accession Number: 20180509–5216. Comments Due: 5 p.m. ET 5/30/18. protest in any of the above proceedings Applicants: Moapa Southern Paiute must file in accordance with Rules 211 Docket Numbers: ER18–1563–000. Solar, LLC. and 214 of the Commission’s Applicants: NorthWestern Description: Compliance filing: Regulations (18 CFR 385.211 and Corporation. Supplement to Notice of Non-Material 385.214) on or before 5:00 p.m. Eastern Description: § 205(d) Rate Filing: Change in Status to be effective time on the specified comment date. Revisions to Attachment L— 5/11/2018. Protests may be considered, but Filed Date: 5/10/18. Creditworthiness Procedures to be intervention is necessary to become a Accession Number: 20180510–5084. effective 7/10/2018. party to the proceeding. Comments Due: 5 p.m. ET 5/31/18. Filed Date: 5/10/18. eFiling is encouraged. More detailed Accession Number: 20180510–5033. Docket Numbers: ER18–995–001. information relating to filing Comments Due: 5 p.m. ET 5/31/18. Applicants: Southwest Power Pool, requirements, interventions, protests, Inc. Docket Numbers: ER18–1564–000. service, and qualifying facilities filings Description: Tariff Amendment: Applicants: Niagara Mohawk Power can be found at: http://www.ferc.gov/ Amended Filing—Attachment AE Corporation, New York Independent docs-filing/efiling/filing-req.pdf. For Revisions to Clarify Registration of Load System Operator, Inc. other information, call (866) 208–3676 to be effective 5/11/2018. Description: Tariff Cancellation: (toll free). For TTY, call (202) 502–8659. Filed Date: 5/10/18. NMPC Cancellation of CRA 2264 with Accession Number: 20180510–5116. Oneida Indian Nation to be effective Dated: May 10, 2018. Comments Due: 5 p.m. ET 5/31/18. 3/30/2017. Nathaniel J. Davis, Sr., Docket Numbers: ER18–1172–001 Filed Date: 5/10/18. Deputy Secretary. Applicants: Southern California Accession Number: 20180510–5055. [FR Doc. 2018–10397 Filed 5–15–18; 8:45 am] Edison Company. Comments Due: 5 p.m. ET 5/31/18. BILLING CODE 6717–01–P

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ENVIRONMENTAL PROTECTION of a contact person, refer to the author ADI on a regular basis. In addition, the AGENCY of the document. ADI contains EPA-issued responses to SUPPLEMENTARY INFORMATION: requests pursuant to the stratospheric [FRL–9977–73–OECA] ozone regulations, contained in 40 CFR Background part 82. The ADI is a data system on the Applicability Determination Index (ADI) The General Provisions of the NSPS internet with over three thousand EPA Data System Recent Posting: Agency in 40 Code of Federal Regulations (CFR) letters and memoranda pertaining to the Applicability Determinations, part 60 and the General Provisions of applicability, monitoring, Alternative Monitoring Decisions, and the NESHAP in 40 CFR part 61 provide recordkeeping, and reporting Regulatory Interpretations Pertaining that a source owner or operator may requirements of the NSPS, NESHAP, to Standards of Performance for New request a determination of whether emission guidelines and Federal Plans Stationary Sources, Emission certain intended actions constitute the for existing sources, and stratospheric Guidelines and Federal Plan commencement of construction, ozone regulations. Users can search for Requirements for Existing Sources, reconstruction, or modification. 40 CFR letters and memoranda by date, office of National Emission Standards for 60.5 and 61.06. The General Provisions issuance, subpart, citation, control Hazardous Air Pollutants, and the in part 60 also apply to Federal and number, or by string word searches. Stratospheric Ozone Protection EPA-approved state plans for existing Today’s notice comprises a summary Program sources in 40 CFR part 62. See 40 CFR of 54 such documents added to the ADI 62.02(b)(2). The EPA’s written responses on April 24, 2018. This notice lists the AGENCY: Environmental Protection to inquiries on provisions in parts 60, 61 subject and header of each letter and Agency (EPA). and 62 are commonly referred to as memorandum, as well as a brief abstract ACTION: Notice of availability. applicability determinations. Although of the letter or memorandum. Complete the NESHAP part 63 regulations [which copies of these documents may be SUMMARY: This notice announces include Maximum Achievable Control obtained from the ADI on the internet applicability determinations, alternative Technology (MACT) standards and/or through the Resources and Guidance monitoring decisions, and regulatory Generally Available Control Technology Documents for Compliance Assistance interpretations that EPA has made with (GACT) standards] contain no specific page of the Clean Air Act Compliance regard to the New Source Performance regulatory provision providing that Monitoring website under ‘‘Air’’ at: Standards (NSPS); the National sources may request applicability https://www2.epa.gov/compliance/ Emission Standards for Hazardous Air determinations, the EPA also responds resources-and-guidance-documents- Pollutants (NESHAP); the Emission to written inquiries regarding compliance-assistance. Guidelines and Federal Plan applicability for the part 63 regulations. Requirements for existing sources; and/ Summary of Headers and Abstracts In addition, the General Provisions in or the Stratospheric Ozone Protection part 60 and 63 allow sources to seek The following table identifies the Program. permission to use monitoring or database control number for each FOR FURTHER INFORMATION CONTACT: An recordkeeping that is different from the document posted on the ADI data electronic copy of each complete promulgated requirements. See 40 CFR system on April 24, 2018; the applicable document posted on the Applicability 60.13(i), 61.14(g), 63.8(b)(1), 63.8(f), and category; the section(s) and/or subpart(s) Determination Index (ADI) data system 63.10(f). The EPA’s written responses to of 40 CFR part 60, 61, 62, or 63 (as is available on the internet through the these inquiries are commonly referred to applicable) addressed in the document; Resources and Guidance Documents for as alternative monitoring decisions. and the title of the document, which Compliance Assistance page of the Furthermore, the EPA responds to provides a brief description of the Clean Air Act Compliance Monitoring written inquiries about the broad range subject matter. website under ‘‘Air’’ at: https:// of regulatory requirements in 40 CFR Also included is an abstract of each www2.epa.gov/compliance/resources- parts 60 through 63 as they pertain to document identified with its control and-guidance-documents-compliance- a whole source category. These inquiries number after the table. These abstracts assistance. The letters and memoranda may pertain, for example, to the type of are provided solely to alert the public to on the ADI may be located by author, sources to which the regulation applies, possible items of interest and are not date, office of issuance, subpart, or to the testing, monitoring, intended as substitutes for the contents citation, control number, or by string recordkeeping, or reporting of the documents. This notice does not word searches. For questions about the requirements contained in the change the status of any document with ADI or this notice, contact Maria Malave regulation. The EPA’s written responses respect to whether it is ‘‘of nationwide at EPA by phone at: (202) 564–7027, or to these inquiries are commonly referred scope or effect’’ for purposes of CAA by email at: [email protected]. For to as regulatory interpretations. section 307(b)(1). For example, this technical questions about individual The EPA currently compiles EPA- notice does not convert an applicability applicability determinations or issued NSPS and NESHAP applicability determination for a particular source monitoring decisions, refer to the determinations, alternative monitoring into a nationwide rule. Neither does it contact person identified in the decisions, and regulatory purport to make a previously non- individual documents, or in the absence interpretations, and posts them to the binding document binding.

ADI DETERMINATIONS UPLOADED ON APRIL 24, 2018

Control No. Categories Subparts Title

1600019 ...... NSPS ...... A, TTTT ...... Applicability Determination for Stationary Combustion Turbine. FP00003 ...... Federal Plan ...... LLL, EEE ...... Alternative Monitoring Plan at Sewage Sludge Incinerator. 1700003 ...... NSPS ...... WWW ...... Alternative Tier 2 Testing Methodology for MSW Landfill. 1700004 ...... NSPS, MACT, NESHAP Kb, UUUU ...... Applicability Determination for Two Carbon Disulfide Storage Tanks.

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ADI DETERMINATIONS UPLOADED ON APRIL 24, 2018—Continued

Control No. Categories Subparts Title

1700005 ...... NSPS, MACT ...... Ja, CC ...... Applicability Determination to Determine if Compliance with 40 CFR 63.670 Triggers 40 CFR 60 NSPS Subpart Ja for Flares. FP00004 ...... Federal Plan ...... LLL ...... Applicability Determination for Sewage Sludge Gasifier. 1700008 ...... NSPS ...... A, Appen ...... Relative Accuracy Test Audit Frequency for Carbon Monoxide CEMS. 1700010 ...... NSPS ...... CCCC, EEEE ... Applicability Determination for Gasification Unit. 1700011 ...... Federal Plan, NSPS ...... GGG, WWW ..... Request for Removal of Landfill Gas Collection and Control System. 1700012 ...... NSPS ...... A, J ...... Applicability Determination for Flare at Hydrogen Reformer Facility. 1700014 ...... NSPS ...... OOOOa ...... Applicability Determination for Well Completion Operations. 1700015 ...... NSPS ...... KKKK ...... Regulatory Interpretation for Emissions Reporting at Combustion Turbine. 1700016 ...... NSPS ...... J, Ja...... Alternative Monitoring Plan for Hydrogen Sulfide in Temporary Tank Degassing Events at a Refinery. 1700017 ...... NSPS ...... OOO ...... Applicability Determination of Nonmetallic Mineral. 1700018 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan for Hydrogen Sulfide and Sulfur Dioxide in Flares and Fuel Gas Combustion Devices at Petroleum Refinery. 1700019 ...... NSPS ...... Ja ...... Alternative Monitoring Request for Sulfur Dioxide at Sulfur Recovery Plant. 1700020 ...... NSPS ...... A, Ja ...... Alternative Monitoring Plan for CEMS Calibration Gas at a Refinery. 1700021 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan for Hydrogen Sulfide Vapors Combusted in Portable Thermal Oxidizers at Refineries. 1700022 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan and Performance Test Waiver for Hydrogen Sulfide Vapors Combusted in Portable Thermal Oxidizers and Fuel Gas Combustion Devices at Refineries. 1700023 ...... NSPS ...... Ja ...... Alternative Monitoring Plan for Hydrogen Sulfide in Vapor Combustion Units at a Refinery. 1700024 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan for Hydrogen Sulfide and Sulfur Dioxide in Flares and Fuel Gas Combustion Devices at a Refinery. 1700025 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan for Hydrogen Sulfide in Mobile Combustion De- vices at Refineries. 1700026 ...... NSPS ...... Ja ...... Alternative Monitoring Plan for NOx CEMS Span for Heaters at a Refinery. 1700027 ...... NSPS ...... A, Ja ...... Alternative Monitoring Plan for Total Reduced Sulfur in Flare System at a Refinery. 1700028 ...... NSPS ...... NNN, RRR ...... Alternative Monitoring Plan and Test Waiver for the Olefins Manufacturing Unit and Demethanizer Distillation Column Vents at a Chemical Manufac- turing Plant. 1700029 ...... NSPS, NESHAP, MACT J, UUU ...... Alternative Monitoring Plan for Wet Gas Scrubber at a Refinery. 1700030 ...... NSPS ...... Ja ...... Flare Flow Monitoring Accuracy Requirement for a Refinery. 1700031 ...... NSPS ...... Ja ...... Flare Flow Monitoring Accuracy Requirement for a Refinery. 1700032 ...... NSPS ...... Ja ...... Flare Flow Monitoring Accuracy Requirement for a Refinery. 1700033 ...... NSPS ...... Ja ...... Flare Flow Monitoring Accuracy Requirement for a Refinery. 1700034 ...... NSPS, NESHAP, MACT Ja, UUU ...... Alternative Monitoring Plan for Sulfur Dioxide and Oxygen Concentrations at Sulfur Recovery Unit Incinerator at a Refinery. 1700035 ...... NSPS ...... J, Ja ...... Alternative Monitoring Plan for Portable Flares and Fuel Gas Combustion Devices During Degassing Operations at a Refinery. 1700036 ...... NSPS ...... FFF ...... Performance Test Waiver for Flexible Vinyl and Urethane Coating and Printing Lines. A170001 ...... Asbestos, NESHAP ...... M ...... Applicability Determination for Vermiculite Material in Building Demolition. M170001 ...... MACT ...... PPPP ...... Applicability Determination for Surface Coating Facility. M170002 ...... MACT ...... CC ...... Applicability Determination for Vapor Combustor at a Petroleum Refinery. M170004 ...... MACT, NESHAP ...... DDDDD, HHH ... Applicability Determination for Glycol Reboiler Heater at Natural Gas Facil- ity. M170005 ...... MACT ...... EEE ...... Alternative Relative Accuracy Procedure for Three Hazardous Waste Liquid Fuel Boilers. M170006 ...... MACT ...... PPPP ...... Alternative Control Device and Monitoring for Plastic Parts and Products Coating Facility. M170007 ...... MACT ...... PPPPP ...... Reconstruction for Test Cells/Stands. M170008 ...... MACT ...... CC ...... Determination for Flare Vent Gas Chromatography Calibration and Configu- ration at Refinery. M170009 ...... MACT ...... UUUUU ...... Eligibility to Pursue Low Emitting Electric Generating Unit Status under the Mercury Air Toxics Rule. M170010 ...... MACT, NSPS ...... ZZZZ, IIII ...... Applicability Determination for Engines at Pump Station. M170011 ...... MACT ...... FFFF, G ...... Waiver Request for Flow Measurement at a Flare Performance Test. M170012 ...... MACT ...... DDDDD ...... Mercury Site-Specific Fuel Analysis Plans for Boilers and Process Heaters. M170013 ...... MACT ...... DDDDD ...... Alternative Mercury Analysis Breakthrough Request. M170014 ...... MACT, NESHAP ...... UUU ...... Alternative Monitoring for Oxygen Concentration at a Refinery. M170017 ...... MACT ...... FFFF, HHHHH .. Applicability of MON & MCM rules to Adhesive Processes at 3M. WDS–146 ...... Woodstoves NSPS ...... AAA ...... Regulatory Interpretation for Catalyst Suitable Replacement Procedures. WDS–147 ...... Woodstoves, NSPS ...... AAA, QQQQ ..... Regulatory Interpretation on the Wood Heater Sealing and Certification Re- quirements. WDS–148 ...... Woodstoves NSPS ...... AAA ...... Applicability Determination for Wood-Burning Sauna Heaters. Z170001 ...... NESHAP, MACT ...... X ...... Applicability Determination for Secondary Lead Smelting Facility. Z170002 ...... NESHAP ...... UUUU ...... Alternative Test and Monitoring Methods for Sulfur Compound Emissions in Process Vents at a Cellulose Manufacturing Facility.

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ADI DETERMINATIONS UPLOADED ON APRIL 24, 2018—Continued

Control No. Categories Subparts Title

Z170003 ...... NESHAP ...... UUU ...... Alternative Monitoring for Oxygen Concentration in Catalyst Regenerator at a Refinery.

Abstracts A2: Yes. The EPA approves Lynn’s times. Therefore, the tanks do not have request for an AMP for the WESP. direct CS2 gaseous emissions. Abstract for [1600019] Abstract for [1700003] Abstract for [1700005] Q: Did construction commence on the Portland General Electric (PGE) Carty Q: Does the EPA approve the Q: Does the EPA determine that Generating Facility electric generating alternative testing under 40 CFR part 60, changes made to the OMD–1 Rail rack unit (EGU) located in Boardman, Oregon subpart WWW (the Landfill NSPS) to flare, located at the Suncor Energy, Inc. when the turn-key contract for allow use of landfill gas flow rate petroleum refinery in Commerce City, construction of the Facility was signed, measurements at the header of the Colorado, to ensure compliance with 40 or later when the contractor began voluntary gas collection and control CFR part 63 subpart CC, NESHAP from actual onsite construction activities? system (GCCS) to calculate annual non- Petroleum Refineries, are considered a A: Pursuant to 40 CFR 60.5(a) and 40 methane organic compound (NMOC) modification under 40 CFR part 60 CFR 60.2 definition of ‘‘commence’’, emissions for a Tier 2 test at the Central subpart Ja? A: No. Based on the information EPA determines that PGE’s construction Sanitary Landfill (CSL) in Pierson, provided, the addition of utility commenced on June 3, 2013, when PGE Michigan? supplied natural gas to the OMD–1 Rail entered into a contractual obligation A: No. The EPA does not approve the rack flare would not be considered a construction of the Carty Generating alternative testing to use the flow rate modification for subpart Ja purposes Facility. measurements from the header of the because this flare is not physically GCCS, unless CSL can verify that the Abstract for [FP00003] connecting any new piping from a flow rate measured in the header of the ‘‘refinery process unit’’, including Q1: Does the EPA approve Lynn GCCS accounts for the total quantity of ‘‘ancillary equipment,’’ or a ‘‘fuel gas Water and Sewer Commission’s (Lynn’s) landfill gas generated by the landfill. system’’ as those terms are defined in request to use site-specific control Abstract for [1700004] Subpart Ja. Rather, the new piping is technology and monitoring parameters adding utility supplied natural gas to for the granular activated carbon Q: Does the EPA determine that the vapors from loading racks, Also, the adsorption system used to control two carbon disulfide (CS2) storage tanks addition of utility supplied natural gas mercury emissions from the sewage located at the 3M Company (3M) Elyria, to the OMD–1 Rail rack flare is not sludge incinerator (SSI), subject to the Ohio manufacturing plant are regulated increasing the flow capacity of the flare. 40 CFR part, subpart MMMM, under 40 CFR part 60 subpart Kb, Emissions Guidelines and Compliance Standards of Performance in Volatile Abstract for [FP00004] Timelines for Existing Sewage Sludge Organic Liquid for Storage Vessels Q: Does the EPA determine that 40 Incineration (SSI) Units, and located in (NSPS Kb)? The CS2 storage tanks in CFR part 60 subpart MMMM— Lynn, Massachusetts? The SSI is question are part of an unloading and Emissions Guidelines and Compliance expected to be subject to the federal storage operation regulated under 40 Timelines for Existing Sewage Sludge standards to be promulgated under 40 CFR part 63 subpart UUUU (MACT Incineration (SSI) Units (SSI EG Rule) CFR part 62 subpart LLL, Federal Plan UUUU), NESHAP for Cellulose Products applies to a sewage sludge gasifier Requirements for Sewage Sludge Manufacturing, and the tanks do not owned by MaxWest Environmental Incineration Units Constructed on or have gaseous emissions. Systems Inc. (MaxWest) and located in Before October 14, 2010. A: No. The EPA determines that the Sanford, Florida? A1: Yes. The EPA approves Lynn’s storage tanks in question that store CS2, A: No. EPA determines that the SSI site-specific mercury emission control a volatile organic liquid, are not EG Rule, does not apply to the Maxwest and monitoring plan for the carbon regulated under NSPS Kb based on the sewage sludge gasifier and thermal adsorber. SSIs located in states that did language in Section VI.G.2 of the EPA oxidizer process heater. According to not develop plans by March 21, 2016, as memorandum from William Schrock, the SSI EG Rule, an SSI unit is an required by subpart MMMM, will be OAQPS/ESD/OCG to Docket No. A–99– ‘‘enclosed device or devices using subject to the Federal plan requirements 39, Summary of Public Comments and controlled flame combustion that burns of Subpart LLL, until such time as the Responses on the Proposed NESHAP for sewage sludge for the purpose of state develops a plan that is approved Cellulosic Products Manufacturing, reducing the volume of sewage sludge by EPA. Moreover, the Clean Air Act at dated February 15, 2002. The two CS2 by removing combustible matter.’’ The 42 U.S.C. 7429(f)(2) states that storage tanks are not the type of storage MaxWest system has no flame and it is performance standards for existing SSIs vessels in terms of their physical siting not a sewage sludge incinerator. Next, shall be in effect no later than five years and operational design that were while the syngas which results from the after the date the emission guidelines intended to be regulated under NSPS gasifier is combusted, the SSI EG rule were promulgated, that is by March 21, Subpart Kb, even when these tanks meet defines sewage sludge as ‘‘solid, 2016. the vapor pressure and designed semisolid, or liquid residue generated Q2: Does the EPA approve Lynn’s capacity under the NSPS rule. The tanks during the treatment of domestic sludge request for an Alternative Monitoring in question are completely submerged in treatment works.’’ Since the syngas is Plan (AMP) for the wet electrostatic in a common water bath and have no air a gas and not a solid, semisolid, or precipitator (WESP) used to control space within the tanks due to having a liquid, it does not meet the definition of particulate from the incinerator? water layer above the CS2 layer at all sewage sludge in the SSI EG rule (even

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though it is derived from sewage hazardous waste landfill cell to overlay Q3: Does the EPA determine that the sludge). it since it has met the approval criteria flare is exempt from the sulfur dioxide established at 40 CFR 60.752(b)(2)(v), (SO ) monitoring requirements at 40 Abstract for [1700008] 2 including: (1) The Landfills are ‘‘a CFR 60.105(a) if the fuel gas streams are Q: Does the EPA approve an alternate closed landfill[s]; (2) demonstrated that ‘‘inherently low in sulfur’’? Relative Accuracy Test Audit (RATA) the NMOC gas production rate is less A3: Yes. Based on the information frequency for two carbon monoxide than 50 Mg/yr; and (3) demonstrated provided to the EPA about the gas (CO) and nitrogen oxides (NOx) that the GCCS has been in operation for streams directed to the flare, they are Continuous Emissions Monitoring at least 15 years, as well as the required inherently low in sulfur and therefore Systems (CEMS) on two turbines located removal report is described in 40 CFR the facility is exempt from the SO2 at the Associated Electric Cooperative, 60.757(e). Details behind this decision monitoring requirements at 40 CFR Inc. (AECI) Dell Power Plant in Dell, are included in the EPA determination 60.105(a). Arkansas? letter. A: Yes. The EPA approves AECI’s Q2: Can a landfill cap and remove its Abstract for [1700014] request to follow the part 75 RATA GCCS prior to the 15-year control period Q: Does the EPA determine that well frequency requirements for both NOx if a GCCS was operational prior to the completions performed by CountryMark and CO CEMS, in accordance with start of the 15-year control period, but Energy Resources, LLC (CountryMark) similar prior approvals allowing a not in compliance with the Landfill meet the definition of hydraulic reduction in RATA frequency NSPS and the Landfill Federal Plan fracturing at 40 CFR 60.5430a and are requirements for NOx and CO CEMS design criteria? subject to subpart OOOOa? under part 60 Appendix F. The AECI A2: No. WDI may cap or remove its A: Yes. The EPA determines that turbines operate infrequently, and part GCCS at the remaining Landfills after CountryMark’s operations meet the 60 RATA frequency requirements do not October 6, 2017, since all conditions per definition of hydraulic fracturing at 40 take into account the frequency of the 40 CFR 60.752(b)(2)(v) for landfill CFR 60.5430a, and are therefore subject unit operations. closure will be met on that date. A to applicable requirements of subpart landfill is required to do a performance OOOOa, including but not limited to the Abstract for [1700010] test when a GCCS is installed to ensure standards for well affected facilities at Q: Is the proposed pilot gasification that it is in compliance with the Landfill 40 CFR 60.5375a. EPA concludes that unit at the Carbon Black Global LLC Federal Plan or Landfill NSPS, the formations within the Illinois Basin (CBG) facility in Dunlap, Tennessee whichever is applicable, which is one of that CountryMark has identified are subject to 40 CFR part 60 subpart CCCC the criteria. Once the GCCS is considered ‘‘tight formations’’ because it (Standards of Performance for determined to be in compliance with is necessary to inject pressurized fluids Commercial and Industrial Solid Waste design criteria in the Landfill NSPS and into the formations to ‘‘increase the flow Incineration (CISWI NSPS)? The pilot the Federal plan, the 15-year control of hydrocarbons to the wellhead’’. ‘‘scaled-down’’ unit will be used to period begins. Based on the information Abstract for [1700015] optimize and research the gasification of provided, WDI has not yet satisfied the a variety of carbon-based waste 15-year requirement and must maintain Q: Does EPA determine that water and feedstocks for clients. The resultant operation of the GCCS until October 6, fuel injection data associated with the syngas will be flared. 2017. startup and shutdown of a combustion A: No. The proposed CBG’s operation turbine at the Marshfield Utilities of the pilot unit is not a CISWI unit as Abstract for [1700012] electric power generation facility be defined in § 60.2265 and is therefore not Q1: Does the EPA determine that the included in the 4-hour rolling average subject to the CISWI NSPS because the purchase order for a flare at the Linde calculation used to determine resultant syngas will not be in a Gas North America hydrogen reformer compliance with the nitrogen oxide container when combusted in the flare. facility, located in Romeoville, Illinois, (NOx) emission limitations for While operation of the pilot unit by CBG signed prior to the applicability stationary combustion turbines and for is not subject to the CISWI NSPS, deadline for 40 CFR part 60 subpart J, reporting excess emissions under 40 combustion of syngas produced by the establish that the facility ‘‘commenced CFR part 60 subpart KKKK? gasification of other wastes, by CBG construction’’ of the flare? A: Yes. Subpart KKKK requires that clients, should be evaluated by the A1: Yes. The signed purchase order all unit operating hours, including appropriate delegated permitting agency established a contractual obligation to periods of startup, shutdown and for potential applicability under section construct the flare and therefore the malfunction be included in the 4-hour 129 or section 112 (in the case of facility had commenced construction rolling average steam or water to fuel hazardous waste rules). prior to the subpart J applicability ratio calculation in accordance with 40 deadline. CFR 60.4335(a) and 40 CFR 60.4375(a), Abstract for [1700011] Q2: Does the EPA determine that gas and any excess emissions must be Q1: Does the EPA give permission to streams routed to the flare for reported under 40 CFR 60.4380(a)(l). remove the Site No. 1, Site No. 2, Fons combustion are exempt from the However, such excess emissions would and Old Wayne landfills’ (the Landfills) hydrogen sulfide (H2S) emission limit at not constitute a violation of subpart landfill gas (LFG) gas collection and 40 CFR 60.104(a)(1) if the streams result KKKK if they occurred as a result of control system (GCCS) at a Wayne from startup, shutdown, upset or startup, shutdown, or malfunction. Disposal Inc. (WDI) site in Belleville, malfunction of the plant or are due to Michigan that is subject to the relief valve leakage or other emergency Abstract for [1700016] Municipal Solid Waste Landfill Federal malfunctions? Q: Does the EPA approve an Plan at 40 CFR part 62 subpart GGG A2: Yes. Process upset gases and gases Alternative Monitoring Plan (AMP) to (Landfill Federal Plan)? released as a result of relief valve monitor hydrogen sulfide (H2S) in A1: Yes. The EPA grants permission leakage or other emergency refinery fuel gas during TRiSTAR/ for WDI to cap or remove its LFG GCCS malfunctions are exempt from this H2S Global Vapor Control, Inc.’s (TRiSTAR) from a specific cell to allow a new emission limit. temporary vapor control events, such as

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tank degassing and cleaning operations A: Yes. The EPA conditionally design of the vent gas controls, and the subject to 40 CFR part 60 subparts J at approves the request provided that all H2S monitoring data furnished, EPA refineries in Region 5? other requirements of the monitoring conditionally approves a combined A: Yes. The EPA approves TRiSTAR’s procedures of NSPS subpart Ja for total AMP for the portable fuel combustion AMP at refineries in Region 5 since reduced sulfur (TRS) and hydrogen devices used at both refineries. EPA installing and operating an H2S CMS sulfide (H2S) are followed. The included proposed operating parameter would be technically impractical due to alternative span gases will address limits (OPLs), and data which the the short term nature of tank degassing safety concerns involving storage, refineries must retain and obtain from and similar operations. handling, and engineering controls. The contractors, as part of the conditional EPA conditionally approves a approval. The AMP is only for the Abstract for [1700017] calibration gas concentration range of portable fuel combustion devices at the Q: Does the EPA determine that 0–85 percent for conducting daily drift aforementioned Flint Hills Refineries. sodium gluconate produced at the PMP checks, relative accuracy test audits, Separate, similar AMP requests for the Fermentation Products, Inc. facility in and cylinder gas audits, using a mass same company must be approved by the Peoria, Illinois is classified as a spectrometer to continuously analyze EPA region. nonmetallic mineral under NSPS and monitor H2S and TRS, provided Subpart OOO? that Alon conducts linearity analysis on Abstract for [1700023] A. Yes. The EPA determines that the mass spectrometer once every three Q: Does EPA approve an Alternative sodium gluconate meets the definition years to determine linearity across the Monitoring Plan (AMP) for monitoring of nonmetallic mineral established in entire range of expected concentrations hydrogen sulfide (H2S) in refinery fuel NSPS subpart OOO. of acid gas vent streams. gas streams at the Magellan Midstream Abstract for [1700018] Abstract for [1700021] Partners, L.P.’s (Magellan) facility in Corpus Christi, Texas which are subject Q: Does the EPA approve an Q: Does the EPA approve an to 40 CFR part 60 subparts J or Ja? expansion of the previously approved Alternative Monitoring Plan (AMP) for A: Yes. Based on the information Alternative Monitoring Plan (AMP) for various refineries located in EPA Region provided by Magellan, the facility uses the Flint Hills Resources refinery to 6 and operated by Debusk Service a vapor combustion unit (VCU) to monitor hydrogen sulfide (H2S) and Group to conduct monitoring of control emissions from degassing, sulfur dioxide (SO ) when using hydrogen sulfide (H2S) emissions, in 2 cleaning, and maintenance activities portable flares and fuel gas combustion lieu of installing a continuous emission associated with tanks, vessels, pipes, devices to reduce volatile organic monitoring system (CEMS), when and LPG trucks. Because the VCU will compound (VOC) emissions from performing tank degassing and other be used infrequently, and for short vessels and pipes subject to 40 CFR part similar operations controlled by periods, installation of an H S 60 subpart J or Ja? portable, temporary thermal oxidizers, 2 continuous emission monitoring system A: Yes. The EPA approves that the that are subject to 40 CFR part 60 (CEMS) as required under NSPS Subpart previously-approved AMP, to monitor subparts J or Ja? Ja is not economically feasible. The EPA H S and SO in flares and fuel gas A: Yes. Based on the description of 2 2 approves use of colorimetric stain tubes combustion devices used to treat VOC the process, the vent gas streams, the to determine the concentration of H emissions from petroleum refinery design of the vent gas controls, and the 2S in three fuel gas grab samples prior to storage tank degassing and cleaning H2S monitoring data furnished, the EPA operations subject to NSPS subparts J conditionally approves the AMP. The entering the VCU. Magellan must record and Ja. EPA included proposed operating the results of each grab sample, the key parameter limits (OPLs) and data which activities completed with each Abstract for [1700019] the refineries must furnish as part of the operation, and any other relevant Q: Does the EPA approve Calumet conditional approval. The AMP is only information associated with degassing, Superior’s alternative monitoring for degassing operations conducted at cleaning, and maintenance activities. proposal to use a static default moisture refineries in EPA Region 6. Separate, Abstract for [1700024] correction to correct the sulfur dioxide similar AMP requests for the same CEMS data to a dry basis, for a sulfur company to conduct degassing Q: Does the EPA approve an recovery plant located in Superior, operations at refineries in states in other Alternative Monitoring Plan (AMP) for Wisconsin, subject to 40 CFR part 60 EPA regions must be approved by those Flint Hill Resources in Rosemount, subpart Ja? EPA regions. Minnesota, to monitor hydrogen sulfide A: No. NSPS subpart Ja at 40 CFR (H2S) and sulfur dioxide (SO2) in flares 60.l06a(a)(l) and the Performance Abstract for [1700022] for flares and fuel gas combustion Specification 2 of Appendix B to part 60 Q: Does EPA approve an Alternative devices used to treat volatile organic allow for the data to be monitored either Monitoring Plan (AMP) for the two Flint compound (VOC) emissions from on a dry basis, or to be corrected to a Hills Resources Corpus Christi refineries petroleum refinery storage tank dry basis using continuously monitored (Flint Hills Refineries) to conduct degassing and cleaning operations moisture data. monitoring of hydrogen sulfide (H2S) subject to the New Source Performance emissions, in lieu of installing a Standards for Petroleum Refineries, 40 Abstract for [1700020] continuous emission monitoring system CFR part 60 subparts J and Ja (NSPS Q: Does the EPA approve a request to (CEMS), when performing tank subparts J and Ja)? reduce the concentrations of the degassing and other similar operations A: Yes. The EPA approves an AMP to calibration gas and validation standards controlled by portable, temporary monitor H2S and SO2 in flares for flares on the continuous emission monitoring thermal oxidizers and other fuel and fuel gas combustion devices used to system (CEMS) for several flares subject combustion devices that are subject to treat VOC emissions from petroleum to 40 CFR part 60 subpart Ja at the Alon 40 CFR part 60 subparts J or Ja? refinery storage tank degassing and USA (Alon) Big Spring refinery located A: Yes. Based on the description of cleaning operations subject to NSPS in Big Spring, Texas? the process, the vent gas streams, the subparts J and Ja.

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Abstract for [1700025] subject to 40 CFR part 60, Standards of in Ardmore, Oklahoma, is still Q: Does the EPA approve an Performance for Volatile Organic necessary if the flare is a control device Alternative Monitoring Plan (AMP) for Compound Emissions from Synthetic subject to 40 CFR 60.107a(f)(1)(ii)? GEM Mobile Treatment Services to Organic Chemical Manufacturing A1: No. The EPA finds that the AMP Industry Distillation Operations is no longer necessary. The Final Rule monitor hydrogen sulfide (H2S) in refinery fuel gas during temporary vapor (subpart NNN) and Reactor Processes for the Petroleum Refinery Sector Risk control events subject NSPS Subparts J (subpart RRR)? and Technology Review, issued and Ja, such as tank degassing, at A1: Yes. EPA waives the initial December 1, 2015, amended 40 CFR part refineries in EPA Region 5? performance test for the specific vents 60 subpart Ja to address such conditions A: Yes. The EPA approves an AMP to associated with the two units, both for flares equipped with water seals. subject to NSPS Subparts RRR and Q2: What does the revised rule now monitor H2S in refinery fuel gas for mobile combustion devices flares and NNN, as these are being introduced with require? fuel gas combustion devices used to the primary fuel into a boiler or process A2: 40 CFR 60.107a(g) allows treat emissions from temporary vapor heater in accordance with 40 CFR alternative monitoring with pressure control events, such as tank degassing. 60.8(b) and as provided for in sensors for flares that have flow meters § 60.704(b)(5) of subpart RRR. To ensure which do not have measurement Separate, similar AMP requests for ± facilities located in other EPA regions that affected vent streams are routed to accuracies within 20 percent over a must be approved by the appropriate appropriate control devices, subpart velocity range of 0.1–1 feet per second ± EPA region. RRR requires that the facility maintain (fps) flow rate, or 5 percent for flow a schematic diagram of the affected vent velocities exceeding 1 fps. Abstract for [1700026] streams, collection system(s), fuel Abstract for [1700031] Q: Does the EPA approve Flint Hills systems, control devices, and bypass Resources (FHR) to use a span of 0–50 systems, and include the diagram in the Q1: Does the EPA find that the ppmvd for the nitrogen oxides (NOX) initial report submitted in accordance Alternative Monitoring Plans (AMPs) to continuous emission monitoring system with 40 CFR 60.705(b). modify the flow sensor measurement (CEMS) at two heaters located at the Q2: Does EPA approve a substitution accuracy of flares during extremely low Pine Ben Refinery located in Saint Paul of NSPS subpart NNN for NSPS subpart flow conditions at the Valero Refining, Minnesota, subject to 40 CFR part 60 RRR as an alternative flow and Texas L.P.’s Corpus Christi West Plant subpart Ja? temperature monitoring for the vent and Corpus Christi East Plant Refineries A: No. EPA disapproves the streams associated with two new in Corpus Christi, Texas, are still Alternative Monitoring Proposal to demethanizer distillation columns? necessary if the flares are control allow the analyzers spans of 0–50 A2: Yes. The EPA approves the devices subject to 40 CFR ppmvd as this range does not cover the alternative request for meeting subpart 60.107a(f)(1)(ii)? applicable emission limit of 60 ppmvd. RRR in lieu of subpart NNN A1: No. The EPA finds that the AMPs However, the EPA conditionally requirements for testing, monitoring, are no longer necessary. The Final Rule approves a span of 0–60 ppmvd rather and recordkeeping for boilers and for the Petroleum Refinery Sector Risk than the 120–180 ppmdv required by 40 process heaters, part of the fuel gas and Technology Review, issued CFR 60.107a(c)(1) for the NOX CEMS. system, to comply with the standards of December 1, 2015, amended 40 CFR part The specific conditions are specified in both subparts. 60 subpart Ja to address such conditions the EPA response letter. for flares equipped with water seals. Abstract for [1700029] Q2: What does the revised rule now Abstract for [1700027] Q: Does the EPA re-approve the May require? Q: Does the EPA approve an 2011 AMP to comply with new opacity A2: 40 CFR 60.107a(g) allows Alternative Monitoring Plan (AMP) to requirements for a wet gas scrubbers alternative monitoring with pressure reduce the concentration of calibration (WGS) on the Fluid Catalytic Cracking sensors for flares that have flow meters gas used to perform daily validations Unit (FCCU) at Motiva’s Convent, which do not have measurement and quarterly cylinder gas audits (CGA) Louisiana refinery, subject to NSPS accuracies within ±20 percent over a of the Total Reduced Sulfur monitor for subpart J and NESHAP subpart UUU, for velocity range of 0.1–1 feet per second the flare gas system at the HollyFrontier continued parametric monitoring of (fps) flow rate, or ±5 percent for flow El Dorado Refining LLC refinery opacity at the WGS in lieu of a velocities exceeding 1 fps. (HFEDR) in El Dorado, Kansas, as Continuous Opacity Monitoring Abstract for [1700032] required pursuant to 40 CFR 60.13(d) System? and 40 CFR 60, Appendix F, A: Yes. Based on the previously Q1: Does the EPA find that the respectively? established operating parameter limits Alternative Monitoring Plan (AMP) to A: Yes. The EPA conditionally for the scrubbers, the EPA agrees that modify flow sensor measurement approves the HFEDR AMP due to the the monitoring provisions of the accuracy for multiple flares during safety concerns associated with previously approved AMP were at least extremely low flow conditions at the handling gases with high concentrations as stringent as the new FCCUs Valero Refining Company’s Texas City of hydrogen disulfide (H2S). The requirements in both rules amended Refinery in Texas City, Texas, is still conditions are listed in the EPA December 1, 2015, and therefore re- necessary, if the flares are control determination letter. approves the AMP under the new rules. devices subject to 40 CFR 60.107a(f)(1)(ii)? Abstract for [1700028] Abstract for [1700030] A1: No. The EPA finds that the AMP Q1: Does the EPA approve a waiver of Q1: Does the EPA find that the is no longer necessary. The Final Rule the initial performance test for the Alternative Monitoring Plan (AMP) to for the Petroleum Refinery Sector Risk Olefins Manufacturing Unit and modify a flare’s flow sensor and Technology Review, issued Demethanizer Distillation Column measurement accuracy during extremely December 1, 2015, amended 40 CFR part Vents, at the Eastman Chemical low flow conditions at the Valero 60 subpart Ja to address such conditions Company, Longview, Texas facility, Refining Company’s Ardmore Refinery for flares equipped with water seals.

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Q2: What does the revised rule now Appendix B, Performance Specification Abstract for [A170001] require? 2, and the moisture fraction value from Q: Is there a requirement that Wayne A2: 40 CFR 60.107a(g) allows the most recent stack test. County treat vermiculite material alternative monitoring with pressure Abstract for [1700035] containing less than one percent sensors for flares that have flow meters asbestos by Polarized Light Microscopy which do not have measurement ± Q: Does the EPA approve WRB (PLM) and/or Transmission Electron accuracies within 20 percent over a Refining LP’s (WRB) Alternative Microscopy (TEM) as regulated velocity range of 0.1–1 feet per second ± Monitoring Plan (AMP) for monitoring asbestos-containing material (RACM) (fps) flow rate, or 5 percent for flow hydrogen sulfide (H2S) and sulfur under 40 CFR part 61 subpart M velocities exceeding 1 fps. dioxide (SO2) emissions from portable (Asbestos NESHAP)? The Wayne Abstract for [1700033] flares and fuel gas combustion devices County Airport demolition of Building 715 involves suspect asbestos- Q1: Does the EPA find that an used to control emissions from storage containing material (ACM) consisting of Alternative Monitoring Plan (AMP) to tank, process unit vessel and piping spray-applied fireproofing on the modify flow sensor measurement degassing for maintenance and cleaning primary roof structure that contains accuracy for multiple flares during events at the Wood River Refinery in vermiculite. extremely low flow conditions at Valero Roxana, Illinois refinery subject to 40 CFR part 60 subparts J and Ja? A: The EPA recommends, but does Refining Company’s Three Rivers not require, that the regulated A: Yes. The EPA conditionally Refinery in Three Rivers, Texas, is still community assume vermiculite material approves WRB’s AMP request since it necessary if the flares are control is asbestos-containing material (ACM) agrees that it is impractical to devices subject to 40 CFR and treat it accordingly. However, if 60.107a(f)(1)(ii)? continuously monitor the H2S in and vermiculite material is present in A1: No. The EPA finds that the AMP SO2 emissions from gases going to building materials at a facility (as either is no longer necessary. The Final Rule portable flares and fuel gas combustion friable or Category I or II nonfriable for the Petroleum Refinery Sector Risk devices during the infrequent and material that could become regulated), and Technology Review, issued temporary events when storage tanks, then the facility must be thoroughly December 1, 2015, amended 40 CFR part process unit vessels and piping are inspected and any suspect vermiculite 60 subpart Ja to address such conditions degassed for maintenance and cleaning material must be sampled and analyzed for flares equipped with water seals. operations, and approves the AMP. The like any other suspect asbestos- Q2: What does the revised rule now conditions are specified in the EPA containing friable or nonfriable material require? determination letter. unless it is assumed to be ACM and A2: 40 CFR 60.107a(g) allows treated accordingly. Based on the site- alternative monitoring with pressure Abstract for [1700036] specific test results provided by the sensors for flares that have flow meters Q: Does the EPA grant 3M’s request to Wayne County Airport, the spray- which do not have measurement ± waive the initial performance testing applied fire proofing tested at Building accuracies within 20 percent over a requirements of 40 CFR part 60 subpart 715 is not ACM, and is not subject to the velocity range of 0.1–1 feet per second ± FFF, Standards of Performance for federal Asbestos NESHAP. (fps) flow rate, or 5 percent for flow Flexible Vinyl and Urethane Coating Abstract for [M170001] velocities exceeding 1 fps. and Printing (NSPS subpart FFF) for Abstract for [1700034] 3M’s 3L and 6L lines at its Hutchinson, Q: Does the EPA determine that the Magna DexSys facility in Lansing, Q: Does the EPA approve an Minnesota facility, which are controlled by separate thermal oxidizers? Michigan (Lansing facility) is a major Alternative Monitoring Plan (AMP) for source of hazardous air pollutants A: No. The EPA does not waive the determining sulfur dioxide (SO2) and (HAPs) for purposes of applicability of oxygen (O2) concentrations on a dry initial performance testing requirements the NESHAP for Surface Coating of basis, using wet basis concentration data for 3M’s 3L and 6L lines under NSPS Plastic Parts and Products, at 40 CFR from continuous emission monitoring subpart FFF for two reasons. First, the part 63 subpart PPPP? systems (CEMS) at a sulfur recovery unit capture and destruction efficiency A: Yes. Based upon the information (SRU) incinerator at the Valero Refining- testing on which 3M wants the waiver provided, the EPA determines that Meraux LLC (Valero) petroleum to rely were not conducted at the same Magna DexSys is a major source as refinery, located in Meraux, Louisiana, time. NSPS subpart FFF requires ‘‘a defined under Section 112 of the Clean subject to 40 CFR part 60 subpart Ja and performance test to determine overall Air Act and is, therefore, subject to the 40 CFR part 63 subpart UUU? VOC control efficiency’’ which implies requirements of subpart PPPP. The A: Yes. The EPA conditionally simultaneous testing of both capture Lansing facility’s permitted xylene approves Valero’s AMP on the No. 3 efficiency and destruction efficiency at emission limits have always been, and SRU incinerator while the new dry basis the same time to demonstrate are still, above the major source SO2 and O2 CEMS are installed and compliance. Second, even if separate threshold. Furthermore, Magna DexSys commissioned before the AMP testing of capture and destruction lacks the data necessary to calculate expiration date of August 1, 2017. efficiency was allowed by NSPS subpart uncontrolled HAP emissions at the Valero proposed programming the FFF, the tests identified by 3M for facility, and there are no federally refinery’s process control and data demonstrating compliance were enforceable physical or operational acquisition system to perform real time conducted years apart (3 and 10 years limitations in place to limit emissions moisture corrections of the vent stream for the 3L and 6L lines, respectively). from the facility to less than 10 tons per concentrations at the SRU incinerator. Such long time periods between testing year for a single HAP or 25 tons per year The EPA approves Valero’s request to cannot provide assurance that for any combination of HAP. use a methodology to mathematically compliance was achieved, and cannot correct the measured wet basis provide assurance that operational Abstract for [M170002] concentrations to dry basis using conditions during each test were Q: Does the EPA determine that the Equation 2–1, from 40 CFR part 60, identical. vapor combustor in the Plant 2 loading

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area at the Suncor Energy Inc. Standards for Hazardous Air Pollutants 2003. However, the cost of passive petroleum refinery in Commerce City, from Hazardous Waste Combustors measurement and control Colorado is considered a flare under 40 (HWC MACT)? instrumentation and electronics is CFR part 63 subpart CC, NESHAP from A: Yes. EPA concludes that Vertellus excluded from affected source Petroleum Refineries, and, therefore, may use the alternative RA procedure in reconstruction calculations as explained subject to the flare requirements of 40 the context of either the BIF Rule or the in 40 CFR 63.9290. CFR 63.670 and 63.671? HWC MACT. The EPA previously A: No. The EPA determines that the approved the use of the alternative RA Abstract for [M170008] vapor combustor described in the March procedure in Appendix IX of 40 CFR Q1: Does the EPA approve the use of 10, 2017 letter does not meet the part 266 for the hazardous waste liquid either of the calibration options definition of a flare at 40 CFR 63.641 of fuel boilers under the BIF rule at provided at 40 CFR 63.671(e)(2)(i) or (ii) subpart CC. Therefore, the vapor Vertellus. The EPA believes that the under the National Emission Standards combustor is not subject to the alternative RA procedures in Appendix for Hazardous Air Pollutants from requirements in 40 CFR 63.670 and A of the HWC MACT are acceptable Petroleum Refineries at 40 CFR part 63, 63.671. However, the combustor needs procedures for a hazardous waste subpart CC (NESHAP subpart CC) for its to be tested, and operating parameters burning liquid fuel boiler. gas chromatograph (GC), if the current established and monitored, to assure Abstract for [M170006] configuration of the GC does not allow compliance with the subpart CC it to identify 1,3 butadiene? The emission limits. Q: Does EPA approve the use of the Calumet Superior, LLC. refinery plant in ‘R Boiler’ as an alternative control Abstract for [M170004] Superior, Wisconsin (Calumet) uses a device to comply with the ‘‘emission gas chromatograph (GC) to monitor the Q: Does the EPA determine that the rate with add-on controls’’ compliance flare vent gas composition to assess glycol dehydration unit reboiler at El option under 40 CFR part 63 subpart compliance with the operating limits in Paso Natural Gas’ southern New Mexico PPPP (the NESHAP for Surface Coating 40 CFR 63.670(e). facility, which is subject to the National of Plastic Parts and Products) for two A1: No. 40 CFR 63.671(e)(2)(i) of Emission Standards for Hazardous Air plastic parts and products coating NESHAP subpart CC is not an option Pollutants for Natural Gas Transmission production lines at the SABIC and Storage Facilities (NESHAP subpart because the current flare vent gas GC Innovative Plastics Mt. Vernon, LLC configuration does not allow it to HHH), is also subject to the NESHAP for (SABIC) facility in Mt. Vernon, Indiana? Industrial, Commercial, and identify 1,3 butadiene. Therefore, A: Yes. Based on the information Calumet can only use the calibration Institutional Boilers and Process Heaters provided by SABIC, and the fact that (NESHAP subpart DDDDD)? option provided at 40 CFR SABIC intends to conduct a 63.671(e)(2)(ii) since it allows the use of A: Yes. The EPA determines that performance test to determine the although the glycol dehydration reboiler a surrogate calibration gas to cover all organic HAP destruction efficiency of compounds in the flare vent gas stream. is subject to NESHAP subpart HHH, the the ‘R Boiler’, the EPA approves Q2: Does the EPA determine that the reboiler is also subject to NESHAP SABIC’s request for this boiler to serve current configuration of the flare vent subpart DDDDD. The reboiler is as an add-on control device under the GC that does not allow it to identify 1,3 considered a process heater subject to NESHAP for Surface Coating of Plastic butadiene meets the requirements of the NESHAP subpart DDDDD because the Parts and Products since it is consistent NESHAP subpart CC to assess gaseous fuel fired to the unit is not with the subpart PPPP MACT compliance with the operating limits in regulated under another subpart, and requirements for demonstrating 40 CFR 63.670(e)? Calumet has collected the exhaust gas from the reboiler continuous compliance thermal oxidizer and analyzed flare vent gas samples for combustion chamber is uncontrolled as a control device. (i.e. the emissions vent directly to 1,3 butadiene. The results of this atmosphere). The EPA noted that Abstract for [M170007] sampling detected 1, 3 butadiene at process vent standards under NESHAP Q1: Does the EPA determine that concentrations levels below the subpart HHH only apply to the Caterpillar Inc.’s (Caterpillar’s) existing threshold expected to have an impact on dehydrator reboiler still vent and flash test cells/stands at its Lafayette facility the net heating value of the flare vent tank emissions. A flare is the control are a reconstructed affected source gas in the combustion zone. device for these emissions under under 40 CFR part 63 subpart PPPPP? A2: Yes. Based on the information NESHAP subpart HHH. However, A1: No. EPA determines that many of Calumet provided and pursuant to 40 NESHAP subpart HHH does not apply the test cells/stands components that CFR 63.670(j)(1) and 63.67l(e), the EPA to the reboiler combustion chamber were added or replaced were not linked determines that the current emissions because the reboiler itself is together by a single planning decision, configuration of the flare vent gas GC not a control device being used to and therefore cannot be aggregated meets the requirements of the NESHAP comply with another NESHAP (in this together as a single project. The cost of subpart CC. case, subpart HHH). Caterpillar’s component replacements or Abstract for [M170009] component additions to the affected Abstract for [M170005] source that could conceivably be Q: The Michigan South Central Power Q: Does EPA approve a request for an aggregated together are well below the Agency’s Endicott Generating Station alternative relative accuracy (RA) 50% of the cost of constructing a new (Endicott) has a source with an procedure for three hazardous waste comparable facility. emergency scrubber bypass duct subject liquid fuel boilers at Vertellus Q2: Has the EPA further defined the to the Mercury Air Toxics Standards Agriculture & Nutrition Specialties, LLC terms ‘‘passive measurement and (MATS) at 40 CFR part 63 subpart (Vertellus), in Indianapolis, Indiana, control limitations’’ as used in subpart UUUUU. Is this source eligible to subject to 40 CFR part 266 subpart H PPPPP? pursue Low Emitting electric utility (the Boilers and Industrial Furnaces A2: The EPA has not provided further steam generating unit (LEE) status for Rule or BIF rule) and 40 CFR part 63 definition of these terms since sulfur dioxide (S02) emissions in subpart EEE, the National Emission promulgating the subpart PPPPP rule in accordance with 40 CFR 63.10000?

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A: Yes. In accordance with the 30 at Union Carbide Corporation’s (MCM rule) at MCM when the adhesive technical corrections to MATS Hahnville, Louisiana facility, for the compound is shipped off-site? promulgated in April 2016, Endicott purpose of determining mercury levels A1: The MON rule applies to may pursue LEE status for its source. to classify boiler and heater fuel sources Processes 1 when the adhesive Pursuant to 40 CFR as Other Gas 1 or 2 under 40 CFR part compound is shipped off-site. The MCM 63.10000(c)(1)(i)(C)(1), if a source’s 63 subpart DDDDD? does not apply to Process 1 when the control device bypass emissions are A: Yes. Based on the information adhesive compound is shipped off-site. measured in the bypass stack or duct or submitted, the EPA approves the fuel Process 1 is a miscellaneous organic the source’s control device bypass analysis plans. chemical manufacturing process that produces an adhesive product classified exhaust is routed through the electric Abstract for [M170013] utility steam generating unit main stack by NAICS 325, and process or uses so that emissions are measured during Q: Does the EPA approve SABIC organic HAP, and is therefore a process the bypass event, then the source may Innovative Plastics’ (SABIC’s) request to that is contemplated by 63.2435(b). pursue LEE status. replace EPA Method 30B mercury Q2: Are Processes 2, referred to as analysis breakthrough Quality ‘‘mogul based adhesive compounding’’, Abstract for [M170010] Assurance/Quality Control (QA/QC) located at the 3M’s Hutchinson and Q: Does the EPA determine that the requirements with Relative Accuracy Knoxville facilities subject to the MON replacement pump engines at the Lake Test Audit (RATA) criteria and/or waive or the MCM when the mogul based Borgne Basin Levee District in St. the breakthrough QA/QC for a test adhesive compound is shipped off-site? Bernard Parish, Louisiana are existing conducted in April 2016, for the A2: The MON applies to Processes 2 emergency stationary Reciprocating purposes of complying with 40 CFR part when the mogul based adhesive Internal Combustion Engines (RICE) that 60 subpart DDDDD? compound is shipped off-site. The MCM are not subject to 40 CFR part 63 subpart A: No. The EPA does not approve does not apply to Processes 2 when the ZZZZ? SABIC’s request. There are substantive mogul based adhesive compound is A: No. Based upon the information reasons why the criteria are different for shipped off-site. 3M described the first provided and the description of the compliance testing versus RATA testing. step which involves a chemical reaction engine use, the EPA determines that the The EPA does find however, that while of non-HAP containing raw materials. engines at the Lake Borgne Pump the breakthrough criterion was not met The first step is completed by Station do not meet the definition of in several instances during the tests, it quenching the reaction, without storage existing emergency stationary RICE at appears that the remaining data quality after the first step. The second step, 40 CFR 63.6675. Since construction or objectives were met and there is no HAP containing raw materials were reconstruction of the stationary engines reason to reject the QA/QC data. added to the same vessel with the began after June 12, 2006, and the material from the first step. Because Abstract for [M170014] engines are located in an area source of there is no storage after step 1, we emissions, the engines are subject to 40 Q: Does the EPA approve Calumet believe that both steps of Process 2 are CFR part 60 subpart IIII (Compression Superior, LLC’s (Calumet’s) alternative part of one miscellaneous organic Ignition NSPS). monitoring request to maintain the chemical manufacturing process to hourly oxygen concentration in the produce a product described by NAICS Abstract for [M170011] exhaust gas from the catalyst regenerator 325. Q: Does the EPA approve a waiver of at or above one percent by volume on Q3: Are Processes 1 and 2 located at the volumetric flow rate determination a wet basis, as opposed to a dry basis the 3M’s Hutchinson and Knoxville required as part of the performance test as required by 40 CFR 63 subpart UUU facilities exempt from the MON as for a flare under 40 CFR part 63 subparts at the Superior, Wisconsin refinery? ‘‘affiliated operations’’ when making the G and FFFF at the Lyondell Chemical A: Yes. The EPA approves Calumets’ adhesive compound and mogul based (Lyondell) Bayport Choate Plant (Plant) alternative monitoring request for use of adhesive compound, respectively, at the in Pasadena, Texas? wet basis analyzer readings to same facility that is subject to Subpart A: Yes. The EPA conditionally demonstrate compliance with the one JJJJ (POWC)? approves a waiver of the requirement to percent by volume oxygen A3: Yes. Processes 1 and 2 meet the determine the volumetric flow rate concentration limit in 40 CFR exemption for affiliated operations using EPA Method 2 during initial 63.1565(a)(5)(ii) for periods of startup, under the MON when making the performance testing of a flare at the shutdown, and hot standby. Calumet adhesive and mogul based adhesive, Plant. The volumetric flow rate can be provided information that indicates respectively, at the same facility where calculated using existing flow catalyst fines can plug an analyzer that they are used in a POWC affected measurement devices upstream of the measures on a dry basis. In addition, the facility. The definitions of affiliated flare and estimated flows based on oxygen concentration on a wet basis operations in both the MON and the process knowledge from all minor will always yield a lower reading versus preamble to the POWC contain the streams that may be routed to the flare a dry basis oxygen reading. broad language to define the exemption. on an interim basis. Lyondell must Therefore, we interpret these broad Abstract for [M170017] install flow meters for the flare and terms to include the actual production must demonstrate compliance with flare Q1: Are Processes 1, referred to as of the product that meets the definition exit velocity requirements using the ‘‘adhesive compounding’’, located at the of ‘‘coating’’ under the rule. approved process-based engineering 3M’s Hutchinson, Minnesota Abstract for [WDS–146] calculation protocol for volumetric flow (‘‘Hutchinson’’) and Knoxville, Iowa rate. (‘‘Knoxville’’) facilities subject to the 40 Q: Blaze King Industries Incorporated CFR part 63, subpart FFFF, the is seeking EPA clarification on the steps Abstract for [M170012] Miscellaneous Organic Chemical for adequately demonstrating Q: Does EPA approve site specific fuel Manufacturing (MON rule) or 40 CFR replacement catalyst equivalency for analysis plans to be conducted in part 63, subpart HHHHH, the catalyst-equipped wood heaters subject accordance with approved EPA Method Miscellaneous Coating Manufacturing to the 2015 Standards of Performance

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for New Residential Wood Heaters, New manufacturer if they submit a full test Abstract for [WDS–148] Residential Hydronic Heaters, and report and a complete application. Q: Does EPA determine that the wood Q5: Are the certifications of Forced-Air Furnaces, (40 CFR part 60 heater regulations at 40 CFR part 60 conformity that an EPA-accredited test subpart AAA) (2015 NSPS Standards). subparts AAA apply to the wood- laboratory submits to the EPA ‘‘de facto A: The 2015 NSPS standards requires burning sauna heaters manufactured by temporary certificates of compliance’’ that, to have a catalyst deemed suitable Harvia Oy? because they are not required for the for replacement, equivalency testing be A: No. Based upon the information EPA to issue a temporary certificate of conducted by an EPA-approved test provided and the specific circumstances compliance to a manufacturer? laboratory. Consistent with the 2015 described in Harvia Oy’s letters to the A5: No. As provided in 40 CFR Standards, the manufacturer must notify EPA, the EPA determines that the wood 60.533(e), a conditional, temporary the EPA of the date that certification heater subpart AAA standards do not certificate of compliance may only be testing (catalyst equivalency testing) is apply to Harvia Oy’s wood-burning granted by the EPA provided that the scheduled to begin as stated in 40 CFR sauna heaters since these do not meet manufacturer submits a complete 60.534(g). This notice must be received the definition of wood heaters. The certification application that meets all by the EPA at least 30 days before the sauna heaters are intended to heat the start of testing. the requirements in 40 CFR 60.533(b). Q6: Does submission of a certificate of sauna room only and not to be used for Abstract for [WDS–147] conformity with a complete certification residential heating. This letter is in response to the three package (i.e., application and full test Abstract for [Z170001] report), prior to May 16, 2016, make a November 20, 2015 letters (which the Q: Does the EPA determine that the manufacturer requesting certification EPA is consolidating into one response) Exide Technologies secondary lead ineligible to receive a temporary from OMNI-Test Laboratories, Inc. smelting facility in Vernon, CA, which certificate of compliance? (OMNI) requesting clarification of has been permanently shut down and is several issues under 2015 Standards of A6: No. The manufacturer may receive a conditional, temporary being dismantled, is subject to 40 CFR Performance for New Residential Wood part 63 subpart X? Heaters (subpart AAA) and New certificate of compliance under 40 CFR 60.533(e) until the EPA’s review of the A: No. The EPA determines that the Residential Hydronic Heaters and facility is no longer a ‘‘secondary lead Forced-Air Furnaces (subpart QQQQ) application is complete. Q7: What are the requirements for smelter’’ for purposes of subpart X (collectively referred to as the ‘‘2015 because it can no longer physically or NSPS Standards’’) quality assurance audits for model lines that are deemed certified under 40 CFR legally operate as a secondary lead Q1: Do the 2015 NSPS Standards smelter. In addition, the California allow unsealing of a wood heater, for 60.533(h)(1)? A7: As provided in 40 CFR 60.533(m), Department of Toxic Substances Control which a full certification test series has (DTSC) approved Exide’s Final Closure not been completed, for further testing? ‘‘the manufacturer of a model line with a compliance certification under Plan on December 8, 2016. A1: The 2015 NSPS Standards do not paragraph (h)(1) of this section must specifically allow for unsealing of a Abstract for [Z170002] conduct a quality assurance program wood heater for which a test laboratory that satisfies the requirements of this Q: Does the EPA approve Futamura has suspended a compliance test. paragraph (m) by May 16, 2016.’’ USA, Incorporated’s (Futamura’s) However, EPA interprets some sections Q8: Are manufacturers required to request to use an alternative test method of the 2015 NSPS Standards to allow the contract the services of a third-party using a mass spectrometer (MS) unsealing of a wood heater for the certifier to conduct quality assurance continuous emissions monitoring purpose of further testing in specific audits? system (CEMS) to measure specific circumstances. A8: Yes. Manufacturers are required sulfur compound emissions from Q2: Can the manufacturer provide by 40 CFR 60.533(m) to contract the process vents on the cellulose new parts or make simple modifications services of a third-party certifier to manufacturing process and alternative to the sealed wood heater in lieu of conduct quality assurance audits. monitoring method that would making and shipping a new prototype? Q9: What are the requirements for eliminate the need to collect and report A2: Yes. However, the wood heater deemed certified wood heaters under 40 carbon disulfide (CS2) Recovery Plan must remain sealed until the operation CFR 60.533(m)? operating data based on the availability and test data obtained from the A9: As provided in 40 CFR 60.533(m), of the emissions data from the proposed suspended test is submitted and by May 16, 2016, manufacturers must MS CEMS to demonstrate compliance reviewed by the EPA. have in place a quality assurance with the National Emission Standards Q3: Does a wood heater that has program that satisfies the requirements for Hazardous Air Pollutants for undergone an incomplete test under 40 CFR 60.533(m)(1) through (5). Cellulose Products Manufacturing certification have to be sealed and Q10: Does a certificate of compliance (NESHAP subpart UUUU), at its archived in perpetuity? issued prior to May 15, 2015, at an Tecumseh, Kansas facility? A3: No. However, when the wood emission level less than or equal to the A: Yes. Based on the information heater is sealed per 40 CFR 2015 emission standard need to be provided, the EPA conditionally grants 60.535(a)(2)(vii) and 60.5477(a)(2)(vii), renewed before May 15, 2020? temporary approval for the alternative the wood heater must remain sealed A10: No. Manufacturers of model test method and monitoring method to until the operation and test data lines that are deemed certified per 40 allow Futamura to demonstrate the obtained from the suspended test is CFR 60.533(h)(1) and for which a ability to document compliance with submitted and reviewed by the EPA. certificate of compliance has been NESHAP UUUU by using a MS CEMS. Q4: What are the certification issued prior to May 15, 2015, showing This temporary approval expires one requirements under 40 CFR 60.533(e)? an emission level less than or equal to year from June 16, 2017. At least 60 A4: As provided in 40 CFR 60.533(e), the 2015 emission standards, do not days prior to this expiration date, the EPA may issue a conditional, need to renew their certificates until Futamura is required to make a request temporary certificate of compliance to a May 15, 2020. to EPA for continue and permanent use

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of the CS. In addition, the CS CEMS first-come, first served basis. Pre- comments before the Monday, May 28, needs to successfully pass the required registration is required. 2018, deadline. relative accuracy test audit (RATA) and DATES: The NEJAC will convene a A. Public Comment meet additional conditions outline in Thursday, May 31, 2018, starting at 3:30 the determination letter for EPA p.m., Eastern Time. The meeting Individuals or groups making remarks approval. discussion will focus on several topics during the public comment period will be limited to seven (7) minutes. To Abstract for [Z170003] including, but not limited to, the discussion and deliberation of the final accommodate the number of people Q: Does the EPA approve BP Product report from the NEJAC Youth who want to address the NEJAC, only North America’s (BP) alternative Perspectives on Climate Change Work one representative of a particular monitoring request to maintain the Group. One public comment period community, organization, or group will hourly oxygen concentration in the relevant to the specific issues being be allowed to speak. Written comments exhaust gas from the catalyst regenerator considered by the NEJAC (see can also be submitted for the record. at or above one percent by volume on SUPPLEMENTARY INFORMATION) is The suggested format for individuals a wet basis, as opposed to a dry basis scheduled for Thursday, May 31, 2018, providing public comments is as as required by 40 CFR 63 subpart UUU starting at 5:00 p.m., Eastern Time. follows: Name of speaker; name of at the Whiting, Indiana refinery? Members of the public who wish to organization/community; city and state; A: Yes. The EPA approves the request participate during the public comment and email address; brief description of to maintain the hourly oxygen period are highly encouraged to pre- the concern, and what you want the concentration in the exhaust gas from register by 11:59 p.m., Eastern Time on NEJAC to advise EPA to do. Written the catalyst regenerator at or above one Monday, May 28, 2018. comments received by registration percent by volume on a wet basis during FOR FURTHER INFORMATION CONTACT: deadline, will be included in the periods of startup, shutdown, and hot Questions or correspondence materials distributed to the NEJAC prior standby. BP provided information that concerning the public meeting should to the teleconference. Written comments indicates catalyst fines can plug an be directed to Karen L. Martin, U.S. received after that time will be provided analyzer that measures on a dry basis. Environmental Protection Agency, by to the NEJAC as time allows. All written In addition, the oxygen concentration mail at 1200 Pennsylvania Avenue NW comments should be sent to Karen L. on a wet basis will always yield a lower (MC2201A), Washington, DC 20460; by Martin, EPA, via email at reading versus a dry basis oxygen telephone at 202–564–0203; via email at [email protected]. reading. [email protected]; or by fax at B. Information About Services for Dated: May 7, 2018. 202–564–1624. Additional information Individuals With Disabilities or David A. Hindin, about the NEJAC is available at https:// Requiring English Language Translation Director, Office of Compliance, Office of www.epa.gov/environmentaljustice/ Assistance Enforcement and Compliance Assurance. national-environmental-justice- [FR Doc. 2018–10463 Filed 5–15–18; 8:45 am] advisory-council. For information about access or services for individuals requiring BILLING CODE 6560–50–P SUPPLEMENTARY INFORMATION: The Charter of the NEJAC states that the assistance, please contact Karen L. advisory committee ‘‘will provide Martin, at (202) 564–0203 or via email ENVIRONMENTAL PROTECTION independent advice and at [email protected]. To request AGENCY recommendations to the Administrator special accommodations for a disability about broad, crosscutting issues related or other assistance, please submit your [FRL–9977–09–OECA] to environmental justice. The NEJAC’s request at least fourteen (14) working efforts will include evaluation of a days prior to the meeting, to give EPA National Environmental Justice sufficient time to process your request. Advisory Council; Notification of broad range of strategic, scientific, technological, regulatory, community All requests should be sent to the Public Teleconference and Public address, email, or phone/fax number Comment engagement and economic issues related to environmental justice.’’ listed in the FOR FURTHER INFORMATION AGENCY: Environmental Protection CONTACT section. Registration Agency (EPA). Dated: April 25, 2018. ACTION: Notification of public meeting. Registration for the May 31, 2018, Matthew Tejada, public teleconference will be processed Designated Federal Officer, National SUMMARY: Pursuant to the Federal at https://nejac-may-31-2018-public- Environmental Justice Advisory Council. Advisory Committee Act (FACA), the teleconference.eventbrite.com. Pre- [FR Doc. 2018–09556 Filed 5–15–18; 8:45 am] U.S. Environmental Protection Agency registration is required. Registration for BILLING CODE 6560–50–P (EPA) hereby provides notice that the the May 31, 2018, meeting closes at National Environmental Justice 11:59 p.m., Eastern Time on Monday, Advisory Council (NEJAC) will meet on May 28, 2018. The deadline to sign up ENVIRONMENTAL PROTECTION the dates and times described below. All to speak during the public comment AGENCY meetings are open to the public. period, or to submit written public Members of the public are encouraged comments, is 11:59 p.m., Eastern Time [CWA–05–2016–0014; FRL–9977–83–OARM] to provide comments relevant to the on Monday, May 28, 2018. When specific issues being considered by the registering, please provide your name, Notice of Order Denying Petition To NEJAC. For additional information organization, city and state, email Set Aside Consent Agreement and about registering to attend the meeting address, and telephone number for Proposed Final Order or to provide public comment, please follow up. Please also indicate whether see Registration under SUPPLEMENTARY you would like to provide public AGENCY: Office of Administrative Law INFORMATION. Due to a limited number of comment during the meeting, and Judges, Environmental Protection telephone lines, attendance will be on a whether you are submitting written Agency (EPA).

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ACTION: Notice of order denying petition 309(g) of the CWA, such as where the serve copies of the on the parties and to set aside consent agreement and administrative penalty action in the commenter, and provide public proposed final order. question is settled pursuant to a consent notice of the order. Id. agreement and final order, any person II. Procedural Background SUMMARY: In accordance with section who commented on the proposed 309(g)(4)(C) of the Clean Water Act assessment may petition to set aside the In May of 2016, the Director of the (CWA or Act), notice is hereby given order on the basis that material evidence Water Division of EPA’s Region 5 that an Order Denying Petition to Set was not considered and to hold a (Complainant) and BP Products North Aside Consent Agreement and Proposed hearing on the penalty (33 U.S.C. America Inc. (Respondent) executed a Final Order has been issued in the 1319(g)(4)(C); 40 CFR 22.45(c)(4)(ii)). Consent Agreement and Final Order matter styled as In the Matter of BP The CWA requires that if the evidence (CAFO) in the matter styled as In the Products North America Inc., Docket presented by the petitioner in support of Matter of BP Products North America No. CWA–05–2016–0014. This the petition is material and was not Inc., Docket No. CWA–05–2016–0014.1 document serves to notify the public of considered in the issuance of the order, The CAFO sought to simultaneously the denial of the Petition to Set Aside the Administrator shall immediately set commence and conclude an Consent Agreement and Proposed Final aside such order and provide a hearing administrative penalty action under Order filed in the matter and explain the in accordance with section 309(g)(33 section 309(g) of the CWA against reasons for such denial. U.S.C. 1319(g)(4)(C)). Conversely, if the Respondent for alleged violations found ADDRESSES: To access and review Administrator denies a hearing, the by EPA during an inspection of documents filed in the matter that is the Administrator shall provide to the Respondent’s petroleum refinery located subject of this document, please visit petitioner, and publish in the Federal at 2815 Indianapolis Boulevard in _ https://yosemite.epa.gov/oarm/alj/alj Register, notice of and reasons for such Whiting, Indiana (Facility), conducted _ web docket.nsf/Dockets/CWA-05-2016- denial. Id. from May 5 through May 9, 2014. Under Pursuant to section 309(g) of the 0014. the terms of the CAFO, Respondent CWA, the authority to decide petitions admitted the jurisdictional allegations FOR FURTHER INFORMATION CONTACT: by commenters to set aside final orders set forth in the CAFO but neither Jennifer Almase, Attorney-Advisor, entered without a hearing and provide admitted nor denied the factual Office of Administrative Law Judges copies and/or notice of the decision has allegations and alleged violations. (1900R), Environmental Protection been delegated to Regional Nevertheless, Respondent waived its Agency, 1200 Pennsylvania Ave. NW; Administrators in administrative right to a hearing or to otherwise contest telephone number: (202) 564–6255 penalty actions brought by regional (main) or (202) 564–1170 (direct); fax offices of EPA. Administrator’s the CAFO, and agreed to pay a civil number: (202) 565–0044; email address: Delegation of Authority 2–52A penalty in the amount of $74,212. On [email protected]. (accessible at: http://intranet.epa.gov/ May 31, 2016, Complainant and SUPPLEMENTARY INFORMATION: ohr/rmpolicy/ads/dm/2-52A.pdf). The Respondent also entered into an Administrative Consent Order that I. Legal Authority Rules of Practice require that where a commenter petitions to set aside a incorporated a Compliance Plan setting Section 309(g)(1)(A) of the CWA consent agreement and final order in an forth the measures Respondent had empowers EPA to assess an administrative penalty action brought already taken, as well as those it agreed administrative civil penalty whenever by a regional office of EPA, the Regional it would take in the future, in response on the basis of any information available Administrator shall assign a Petition to the alleged violations. EPA finds that a person has violated Officer to consider and rule on the On or about June 1, 2016, EPA certain sections of the Act or any permit petition (40 CFR 22.45(c)(4)(iii)). Upon provided public notice of its intent to condition or limitation implementing review of the petition and any response file the proposed CAFO and accept any such section in a permit issued filed by the complainant, the Petition public comments thereon. Carlotta under section 402 or 404 of the Act (33 Officer shall then make written findings Blake-King, Carolyn A. Marsh, Debra U.S.C. 1319(g)(1)(A)). However, before as to (A) the extent to which the petition Michaud, and Patricia Walter issuing an order assessing an states an issue relevant and material to (Petitioners) timely filed comments on administrative civil penalty under the issuance of the consent agreement the proposed CAFO (Comments). section 309(g), EPA is required by the and proposed final order; (B) whether Complainant subsequently prepared a CWA and the Consolidated Rules of the complainant adequately considered Response to Comments Regarding Practice Governing the Administrative and responded to the petition; and (C) Proposed CAFO (Response to Assessment of Civil Penalties and the whether resolution of the proceeding by Comments), which indicated that EPA Revocation/Termination or Suspension the parties is appropriate without a would not be altering the proposed of Permits (Rules of Practice) to provide hearing (40 CFR 22.45(c)(4)(v)). CAFO. The Response to Comments was public notice of and reasonable If the Petition Officer finds that a mailed to Petitioners, together with a opportunity to comment on the hearing is appropriate, the Presiding copy of the proposed CAFO, on or about proposed issuance of such order (33 Officer shall order that the consent January 13, 2017, and each Petitioner U.S.C. 1319(g)(4); 40 CFR 22.45(b)(1)). agreement and proposed final order be received the materials by January 30, Any person who comments on the set aside and establish a schedule for a 2017. On or about February 24, 2017, proposed assessment of a penalty is hearing (40 CFR 22.45(c)(4)(vi)). Petitioners timely filed a joint petition then entitled to receive notice of any Conversely, if the Petition Officer finds seeking to set aside the proposed CAFO hearing held under section 309(g) of the that resolution of the proceeding CWA and at such hearing is entitled to without a hearing is appropriate, the 1 While titled jointly, the Final Order is actually a reasonable opportunity to be heard Petition Officer shall issue an order a separate document, drafted to be signed solely by and to present evidence (33 U.S.C. denying the petition and stating reasons Region 5’s Acting Regional Administrator. It is the execution of the Final Order and its subsequent 1319(g)(4)(B); 40 CFR 22.45(c)(1)). If no for the denial (40 CFR 22.45(c)(4)(vii)). filing with the Regional Hearing Clerk at Region 5 hearing is held before issuance of an The Petition Officer shall then file the that will effectuate the parties’ Consent Agreement order assessing a penalty under section order with the Regional Hearing Clerk, and conclude the proceeding.

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and have a public hearing held thereon the burden of demonstrating that the adequately considered them. (Petition). matters they raised with respect to the Accordingly, any claim in this regard A Request to Assign Petition Officer assessment of a higher penalty was denied. (Request) was issued by Region 5’s constituted material and relevant Having found that Petitioners failed to Acting Regional Administrator on May evidence that Complainant failed to present any relevant and material 17, 2017, and served on Petitioners on consider in agreeing to the proposed evidence that had not been adequately May 30, 2017. In the Request, the Acting CAFO. Thus, Petitioners’ claim in this considered and responded to by Regional Administrator stated that after regard was denied. Complainant in agreeing to the considering the issues raised in the Second, Petitioners urged that a proposed CAFO, the undersigned then Petition, Complainant had decided not Supplemental Environmental Project addressed Petitioners’ requests for a to withdraw the CAFO. Accordingly, the (SEP) be incorporated into the proposed public hearing in their Comments and Acting Regional Administrator CAFO and that local residents be Petition. Noting that Petitioners requested assignment of an included in the distribution of funds for appeared to seek a public forum, at least Administrative Law Judge to consider SEP projects. The undersigned found in part, for the parties to explain the and rule on the Petition pursuant to that as Complainant had stated in its meaning of the proposed CAFO to the § 22.45(c)(4)(iii) of the Rules of Practice, Response to Comments and Response to public, the undersigned observed that 40 CFR 22.45(c)(4)(iii). By Order dated Petition, EPA lacks the legal authority to section 309(g) of the CWA and the Rules June 16, 2017, the undersigned was demand a SEP or control the of Practice provide, not for a meeting of designated to preside over this matter, distribution of civil penalty funds. The that nature, but rather a hearing at and Complainant was directed to file a undersigned concluded that given this which evidence is presented for the response to the Petition. Complainant lack of authority, the issues raised by purpose of determining whether filed its Response to Petition to Set Petitioners with regard to a SEP were Complainant met its burden of proving Aside Consent Agreement and Proposed immaterial to the issuance of the that Respondent committed the Final Order (Response to Petition) on proposed CAFO. Thus, this claim was violations as alleged and that the July 13, 2017. denied. proposed penalty is appropriate based Third, Petitioners urged that an III. Denial of Petitioners’ Petition on applicable law and policy. The independent advisory committee and undersigned noted that Petitioners did On May 8, 2018, the undersigned environmental monitoring program for not specifically identify any testimonial issued an Order Denying Petition to Set Respondent’s wastewater treatment or documentary evidence that they Aside Consent Agreement and Proposed plant be created. Petitioners then would present at any such hearing. The Final Order (Order). Therein, the questioned Respondent’s community undersigned further noted that undersigned denied the Petition without outreach activities, which Complainant Petitioners did not offer in either their the need for a hearing on the basis that had referenced in its Response to Comments or the Petition any relevant Petitioners had failed to present any Comments. The undersigned found that and material evidence or arguments that relevant and material evidence that had as argued by Complainant in its had not already been adequately not been adequately considered and Response to Petition, EPA lacks the addressed by Complainant. For these responded to by Complainant. legal authority under section 309(g) of reasons, the undersigned found that Specifically, Petitioners raised four the CWA to establish advisory resolution of the proceeding by the issues.2 First, Petitioners argued that the committees or environmental parties would be appropriate without a alleged violations warranted a higher monitoring programs or compel hearing. civil penalty than that assessed in the Respondent to engage in outreach The undersigned thus issued the proposed CAFO and that the occurrence activities. The undersigned concluded Order Denying Petition to Set Aside of the alleged violations in a region that given the absence of any material Consent Agreement and Proposed Final designated as an Area of Concern and relevant issue not considered by Order. warranted an additional penalty of five Complainant with respect to the course million dollars. The undersigned of action requested by Petitioners, their Dated: May 8, 2018. determined that while Complainant did claim in this regard was also denied. Susan L. Biro, not provide a detailed explanation of Finally, Petitioners referred in their Chief Administrative Law Judge. how the civil penalty assessed in the Comments and Petition to Respondent [FR Doc. 2018–10460 Filed 5–15–18; 8:45 am] proposed CAFO had been calculated, it having a history of violations. While a BILLING CODE 6560–50–P had considered and responded to violator’s history of prior violations is a Petitioners’ arguments in its Response to statutory penalty factor to be considered Comments and Response to Petition. under section 309(g)(3) of the CWA, the FEDERAL ELECTION COMMISSION The undersigned further found that undersigned found that Petitioners had Petitioners had produced no evidence to presented no specific claims of [Notice 2018–09] violations that were related to those set support their position or rebut Filing Dates for the Texas Special Complainant’s position that it had forth in the proposed CAFO, and presented no argument supporting the Election in the 27th Congressional properly implemented the applicable District policy governing its calculation and notion that any prior, unspecified negotiation of the penalty assessed in infraction, had it been considered, AGENCY: Federal Election Commission. the proposed CAFO. The undersigned should have led to a penalty different ACTION: Notice of filing dates for special concluded that Petitioners had not met than that agreed upon by the parties. election. The undersigned also noted that 2 Petitioners described the arguments set forth in Complainant had addressed claims SUMMARY: Texas has scheduled a special the Petition as additions to the Comments they had concerning Respondent’s history of general election on June 30, 2018, to fill previously submitted to EPA in response to the violations in its Response to Comments, the U.S. House of Representatives seat public notice of EPA’s intent to file the proposed CAFO. Accordingly, the undersigned considered which suggested that to the extent any in the 27th Congressional District the arguments raised by Petitioners in both the prior violations would be relevant to the vacated by Representative Blake Petition and the Comments. proposed CAFO, Complainant had Farenthold. There are two possible

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elections, but only one may be committees must also file a Post-General General Election may be found on the necessary. Under Texas law, all Report on July 30, 2018. (See chart FEC website at https://www.fec.gov/ qualified candidates, regardless of party below for the closing date for each help-candidates-and-committees/dates- affiliation, will appear on the ballot. The report.) and-deadlines/. majority winner of the special election Note that these reports are in addition Possible Special Runoff Election is declared elected. Should no candidate to the campaign committee’s regular achieve a majority vote, the Governor quarterly filings. (See chart below for In the event that no candidate will then set the date for a Special the closing date for each report). receives a majority of the votes in the Runoff Election that will include only Special General Election, a Special Unauthorized Committees (PACs and the top two vote-getters. Runoff Election will be held. The Party Committees) Committees participating in the Texas Commission will publish a future notice special election are required to file pre- Political committees filing on a giving the filing dates for that election and post-election reports. quarterly basis in 2018 are subject to if it becomes necessary. special election reporting if they make FOR FURTHER INFORMATION CONTACT: Ms. Disclosure of Lobbyist Bundling previously undisclosed contributions or Elizabeth S. Kurland, Information Activity expenditures in connection with the Division, 1050 First Street NE, Texas Special General Election by the Principal campaign committees, party Washington, DC 20463; Telephone: close of books for the applicable committees and Leadership PACs that (202) 694–1100; Toll Free (800) 424– report(s). (See chart below for the are otherwise required to file reports in 9530. closing date for each report.) connection with the special elections SUPPLEMENTARY INFORMATION: Committees filing monthly that make must simultaneously file FEC Form 3L contributions or expenditures in if they receive two or more bundled Principal Campaign Committees connection with the Texas Special contributions from lobbyists/registrants All principal campaign committees of General Election will continue to file or lobbyist/registrant PACs that candidates who participate in the Texas according to the monthly reporting aggregate in excess of $18,200 during Special General Election shall file a 12- schedule. the special election reporting periods. day Pre-General Report on June 18, Additional disclosure information in (See charts below for closing date of 2018. If there is a majority winner, connection with the Texas Special each period.) 11 CFR 104.22(a)(5)(v), (b).

CALENDAR OF REPORTING DATES FOR TEXAS SPECIAL GENERAL ELECTION

Reg./cert. Close of and Filing Report 1 overnight books mailing deadline deadline

If Only the Special General is Held (06/30/18), Political Committees Involved Must File

Pre-General ...... 06/10/18 06/15/18 06/18/18 July Quarterly ...... 06/30/18 07/15/18 2 07/15/18 Post-General ...... 07/20/18 07/30/18 07/30/18 October Quarterly ...... 09/30/18 10/15/18 2 10/15/18

If Two Elections Are Held, Political Committees Involved Only in the Special General (06/30/18) Must File

Pre-General ...... 06/10/18 06/15/18 06/18/18 July Quarterly ...... 06/30/18 07/15/18 2 07/15/18 1 The reporting period always begins the day after the closing date of the last report filed. If the committee is new and has not previously filed a report, the first report must cover all activity that occurred before the committee registered as a political committee up through the close of books for the first report due. 2 Notice that this filing deadline falls on a weekend or federal holiday. Filing deadlines are not extended when they fall on nonworking days. Accordingly, reports filed by methods other than registered, certified or overnight mail must be received by close of business on the last business day before the deadline.

Dated: May 1, 2018. FEDERAL HOUSING FINANCE Reduction Act of 1995 (PRA), the On behalf of the Commission. AGENCY Federal Housing Finance Agency (FHFA Caroline C. Hunter, [No. 2018–N–05] or the Agency) is seeking public Chair, Federal Election Commission. comments concerning an information [FR Doc. 2018–10386 Filed 5–15–18; 8:45 am] Proposed Collection; Comment collection known as ‘‘Minimum Request Requirements for Appraisal BILLING CODE 6715–01–P Management Companies,’’ which has AGENCY: Federal Housing Finance been assigned control number 2590– Agency. 0013 by the Office of Management and ACTION: 60-Day notice of submission of Budget (OMB). FHFA intends to submit information collection for approval from the information collection to OMB for Office of Management and Budget. review and approval of a three-year SUMMARY: In accordance with the extension of the control number, which requirements of the Paperwork is due to expire on July 31, 2018.

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DATES: Interested persons may submit A. Need for and Use of the Information 2. State Recordkeeping Requirements comments on or before July 16, 2018. Collection (IC #2) ADDRESSES: Submit comments to FHFA, In 2015, FHFA, the Federal Deposit States seeking to register AMCs must identified by ‘‘Proposed Collection; Insurance Corporation (FDIC), the Office have an AMC registration and Comment Request: ‘Minimum of the Comptroller of the Currency supervision program. The regulation Requirements for Appraisal (OCC), and the Board of Governors of requires each participating State to Management Companies, (No. 2018–N– the Federal Reserve System (Board) establish and maintain within its 05)’ ’’ by any of the following methods: (collectively, the Agencies) jointly appraiser certifying and licensing • Agency Website: www.fhfa.gov/ issued regulations 1 to implement agency a registration and supervision open-for-comment-or-input. minimum statutory requirements to be program with the legal authority and • Federal eRulemaking Portal: http:// applied by States in the registration and mechanisms to: (i) Review and approve supervision of appraisal management or deny an application for initial www.regulations.gov. Follow the companies (AMCs).2 These minimum registration; (ii) periodically review and instructions for submitting comments. If requirements apply to States that have renew, or deny renewal of, an AMC’s you submit your comment to the elected to establish an appraiser registration; (iii) examine an AMC’s Federal eRulemaking Portal, please also certifying and licensing agency with books and records and require the send it by email to FHFA at authority to register and supervise submission of reports, information, and [email protected] to ensure AMCs (participating States).3 documents; (iv) verify an AMC’s panel timely receipt by the agency. The regulations also implement the members’ certifications or licenses; (v) • Mail/Hand Delivery: Federal statutory requirement that States report investigate and assess potential Housing Finance Agency, Eighth Floor, to the Appraisal Subcommittee (ASC) of violations of laws, regulations, or 400 Seventh Street SW, Washington, DC the Federal Financial Institutions orders; (vi) discipline, suspend, 20219, ATTENTION: Proposed Examination Council (FFIEC) the terminate, or deny registration renewals Collection; Comment Request: information required by the ASC to of, AMCs that violate laws, regulations, ‘‘Minimum Requirements for Appraisal administer the national registry of or orders; and (vii) report violations of Management Companies, (No. 2018–N– AMCs (AMC National Registry or appraisal-related laws, regulations, or 05)’’. Registry).4 When fully established, the orders, and disciplinary and We will post all public comments we AMC National Registry will include enforcement actions to the ASC.7 receive without change, including any AMCs that are either: (1) Subsidiaries The regulation requires each personal information you provide, such owned and controlled by an insured participating state to impose as your name and address, email depository institution (as defined in 12 requirements on AMCs that are not address, and telephone number, on the U.S.C. 1813) and regulated by either the federally regulated (non-federally FHFA website at http://www.fhfa.gov. In FDIC, OCC, or Board (federally regulated AMCs) to: (i) Register with addition, copies of all comments regulated AMCs); 5 or (2) registered and be subject to supervision by a state received will be available for with, and subject to supervision of, a appraiser certifying and licensing examination by the public on business State appraiser certifying and licensing agency in each state in which the AMC days between the hours of 10 a.m. and agency. operates; (ii) use only state-certified or 3 p.m., at the Federal Housing Finance FHFA’s AMC regulation, located at state-licensed appraisers for federally Agency, Eighth Floor, 400 Seventh Subpart B of 12 CFR part 1222, is regulated transactions in conformity Street SW, Washington, DC 20219. To substantively identical to the AMC with any federally regulated transaction make an appointment to inspect regulations of the FDIC, OCC, and Board regulations; (iii) establish and comply comments, please call the Office of and contains the recordkeeping and with processes and controls reasonably General Counsel at (202) 649–3804. reporting requirements described below. designed to ensure that the AMC, in FOR FURTHER INFORMATION CONTACT: 1. State Reporting Requirements (IC #1) engaging an appraiser, selects an Robert Witt, Senior Policy Analyst, appraiser who is independent of the The regulation requires that each transaction and who has the requisite Office of Housing and Regulatory State electing to register AMCs for Policy, by email at [email protected] education, expertise, and experience purposes of permitting AMCs to provide necessary to competently complete the or by telephone at (202) 649–3128; or appraisal management services relating Eric Raudenbush, Associate General appraisal assignment for the particular to covered transactions in the State market and property type; (iv) direct the Counsel, [email protected], submit to the ASC the information (202) 649–3084 (these are not toll-free appraiser to perform the assignment in regarding such AMCs required to be accordance with the Uniform Standards numbers); Federal Housing Finance submitted by ASC regulations or Agency, 400 Seventh Street SW, of Professional Appraisal Practice; and guidance concerning AMCs that operate (v) establish and comply with processes Washington, DC 20219. The in the State.6 Telecommunications Device for the and controls reasonably designed to ensure that the AMC conducts its Hearing Impaired is (800) 877–8339. 1 The National Credit Union Administration and the Bureau of Consumer Financial Protection also appraisal management services in SUPPLEMENTARY INFORMATION: FHFA is participated in the joint rulemaking but, by accordance with sections 129E(a) seeking comments on its upcoming agreement, the responsibility for clearance under through (i) of the Truth-in-Lending Act.8 request to OMB to renew the PRA the PRA of information collections contained in the clearance for the following collection of joint regulations is shared only by the FDIC, OCC, 3. AMC Reporting Requirements (IC #3) information: Board, and FHFA. The regulation provides that an AMC 2 See 12 U.S.C. 3353(a). An AMC is an entity that Title: Minimum requirements for serves as an intermediary for, and provides certain may not be registered by a state or appraisal management companies. services to, appraisers and lenders. included on the AMC National Registry OMB Number: 2590–0013. 3 12 U.S.C. 3346. 4 See 12 U.S.C. 3353(e). 7 See 12 CFR 1222.23(a). Affected Public: Participating States 5 See 12 CFR 1222.21(k) (defining ‘‘Federally 8 See 12 CFR 1222.23(b). Sections 129E(a) through and State-registered Appraisal regulated AMC’’). (i) of the Truth-in-Lending Act are located at 15 Management Companies. 6 See 12 CFR 1222.26. U.S.C. 1639e(a)–(i).

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if the company is owned, directly or As noted above, each of the Agencies’ hours. The calculations on which those indirectly, by any person who has had AMC regulations contains reporting and estimated are based are described an appraiser license or certificate recordkeeping requirements applying to below. refused, denied, cancelled, surrendered participating states and to both federally 1. State Reporting Requirements (IC #1) in lieu of revocation, or revoked in any regulated and non-federally regulated state for a substantive cause.9 The AMCs. The Agencies have estimated The total estimated burden hours for regulation also provides that an AMC that approximately 200 entities meet the state reporting to the ASC are calculated may not be registered by a state if any regulatory definition of an ‘‘appraisal by multiplying the number of states by person that owns 10 percent or more of management company’’ 14 and that, of the hour burden per state. The burden the AMC fails to submit to a background those 200 AMCs, approximately 120 are hours are then divided equally among investigation carried out by the state federally regulated and approximately the FDIC, OCC, Board, and FHFA, with appraiser certifying and licensing 80 non-federally regulated.15 Unlike the each agency responsible for 25 percent agency.10 Thus, each AMC registering insured depository institutions of the total. For purposes of this with a state must provide information to regulated by the OCC, FDIC, and Board, calculation, the number of states is set the state on compliance with those none of FHFA’s regulated entities owns at 55 which, in conformity with the ownership restrictions. Further, the or controls an AMC or, by law, could regulatory definition of ‘‘state,’’ includes regulation requires that a federally ever own or control an AMC. all 50 U.S. states as well as the regulated AMC report to the state or Accordingly, the Agencies have agreed Commonwealth of the Northern Mariana states in which it operates the that responsibility for the burdens Islands, the District of Columbia, Guam, information required to be submitted by arising from reporting and Puerto Rico, and the U.S. Virgin 16 the state pursuant to the ASC’s policies, recordkeeping requirements imposed Islands. The burden estimate of 1 hour including policies regarding the upon federally regulated AMCs are to be per report is unchanged from the determination of the AMC National split evenly among the OCC, FDIC, and estimate provided for the currently- Registry fee, and information regarding Board (i.e., the equivalent of 40 approved ICR. Therefore, the estimated federally regulated AMCs for each total state reporting burden attributable compliance with the ownership × restrictions described above.11 agency) and that FHFA will not include to all of the Agencies is: 55 states 1 those burdens in its totals. The four hour/state = 55 hours. The estimated 4. AMC Recordkeeping Requirements Agencies have agreed to split the total burden hours attributable to FHFA are (IC #4) burdens imposed upon participating 55 hours × 25 percent = 14 hours An entity meets the definition of an states and upon non-federally regulated (rounded to the nearest whole number). AMC that is subject to the requirements AMCs evenly between them (i.e., by 2. State Recordkeeping Requirements of the AMC regulation if, among other taking responsibility for 25 percent of (IC #2) things, it oversees an appraiser panel of the burden per agency or, in the case of The estimated burden hours on more than 15 state-certified or state- non-federally regulated AMCs, the participating states for developing and licensed appraisers in a state, or 25 or equivalent of 20 such AMCs for each maintaining an AMC licensing program more state-certified or state-licensed agency). is calculated by multiplying the number appraisers in two or more states, within Thus, for ICs #1 and #2, which relate of states without a registration and a given 12-month period.12 For to reporting and recordkeeping licensing program by the hour burden to purposes of determining whether a requirements imposed upon develop the system. The total burden company qualifies as an AMC under participating states, each agency is responsible for 25 percent of the total hours are then equally divided among that definition, the regulation provides the FDIC, OCC, Board, and FHFA. that an appraiser in an AMC’s network estimated burden. For ICs #3 and #4, which relate to reporting and According to the Appraisal Institute, as or panel is deemed to remain on the of July 26, 2017, there were 5 states that network or panel until: (i) The AMC recordkeeping requirements imposed upon both federally regulated AMCs had not developed a system to register sends a written notice to the appraiser and oversee AMCs.17 The burden removing the appraiser with an and non-federally regulated AMCs, the OCC, FDIC, and Board are each estimate of 40 hours per state without a explanation; or (ii) receives a written registration system is unchanged from notice from the appraiser asking to be responsible for the burden imposed upon a total of 60 AMCs (40 federally the estimate provided for the currently- removed or a notice of the death or approved ICR. Therefore, the total 13 regulated plus 20 non-federally incapacity of the appraiser. The AMC estimated burden attributable to all of regulated), or 30 percent of the total would retain these notices in its files. the Agencies is: 5 States × 40 hours/state burden, while FHFA is responsible only = 200 hours. The estimated burden B. Burden Estimate for the burden imposed upon 20 non- hours attributable to FHFA are 200 There is no change in the federally regulated AMCs, or 10 percent hours × 25 percent = 50 hours. methodology or substance of this of the total burden. information collection. For the The Agencies estimate the total 3. AMC Reporting Requirements (IC #3) information collections described above, annualized hour burden placed on The burden for AMC reporting the general methodology is to compute respondents by the information requirements for information needed to the industry wide burden hours for collection in the joint AMC regulations determine the AMC National Registry participating states and AMCs and then to be 1,445 hours. FHFA estimates its fee and information regarding assign a share of the burden hours to share of the hour burden to be 183 compliance with the AMC ownership each of the Agencies for each restrictions is calculated by multiplying information collection. 14 In FHFA’s regulations, this definition is set the number of AMCs by the frequency forth at 12 CFR 1222.21(c). 15 FHFA anticipates that more definitive of response and then by the burden per 9 See 12 CFR 1222.24(a), .25(b). information on the total number of AMCs and on 10 See 12 CFR 1222.24(b). the relative number of federally regulated and non- 16 See 12 CFR 1222.21(o). 11 See 12 CFR 1222.25(c). federally regulated AMCs will become available 17 Appraisal Institute ‘‘Enacted State AMC Laws’’. 12 See 12 CFR 1222.21(c)(iii). after the joint regulations’ AMC registration https://www.appraisalinstitute.org/advocacy/ 13 See 12 CFR 1222.22(b). requirements become effective on August 10, 2018. enacted-state-amc-laws1/.

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response. As described above, 30 of information is necessary for the 400 Seventh Street SW, Washington, DC percent of the burden hours are then proper performance of FHFA functions, 20219, ATTENTION: Proposed assigned to each of the FDIC, OCC, and including whether the information has Collection; Comment Request: Board, while 10 percent are assigned to practical utility; (2) the accuracy of ‘‘Minority and Women Inclusion, (No. FHFA. FHFA’s estimates of the burdens of the 2018–N–06)’’. The frequency of response is collection of information; (3) ways to We will post all public comments we estimated as the number of states that enhance the quality, utility, and clarity receive without change, including any do not have an AMC registration of the information collected; and (4) personal information you provide, such program in which the average AMC ways to minimize the burden of the as your name and address, email operates.18 As discussed above, 5 states collection of information on address, and telephone number, on the do not have AMC registration or respondents, including through the use FHFA website at http://www.fhfa.gov. In oversight programs. According to the of automated collection techniques or addition, copies of all comments Consumer Financial Protection Bureau other forms of information technology. received will be available for (CFPB), the average AMC operates in Dated: May 10, 2018. examination by the public on business 19.56 states.19 Therefore, the average days between the hours of 10 a.m. and Kevin Winkler, AMC operates in approximately 2 states 3 p.m., at the Federal Housing Finance that do not have AMC registration Chief Information Officer, Federal Housing Agency, Eighth Floor, 400 Seventh Finance Agency. systems: (5 States/55 states) × 19.56 Street SW, Washington, DC 20219. To states = 1.778 states, rounded to 2 states. [FR Doc. 2018–10430 Filed 5–15–18; 8:45 am] make an appointment to inspect The burden estimate of one hour per BILLING CODE 8070–01–P comments, please call the Office of response is unchanged from the General Counsel at (202) 649–3804. estimate provided for the currently- FEDERAL HOUSING FINANCE FOR FURTHER INFORMATION CONTACT: approved ICR. Therefore, the total AGENCY Sylvia Martinez, Principal Policy estimated hour burden is: 200 AMCs × Analyst, Office of Minority and Women 2 states × 1 hour = 400 hours. The [No. 2018–N–06] Inclusion, by email at Sylvia.Martinez@ estimated burden hours attributable to fhfa.gov or by telephone at (202) 649– Proposed Collection; Comment FHFA are 400 hours × 10 percent = 40 3301; or Eric Raudenbush, Associate Request hours. General Counsel, Eric.Raudenbush@ 4. AMC Recordkeeping Requirements AGENCY: Federal Housing Finance fhfa.gov, (202) 649–3084 (these are not (IC #4) Agency. toll-free numbers); Federal Housing ACTION: 60-day notice of submission of Finance Agency, 400 Seventh Street The burden for recordkeeping by SW, Washington, DC 20219. The AMCs of written notices of appraiser information collection for approval from Office of Management and Budget. Telecommunications Device for the removal from a network or panel is Hearing Impaired is (800) 877–8339. estimated to be equal to the number of SUMMARY: In accordance with the SUPPLEMENTARY INFORMATION: appraisers who leave the profession per The requirements of the Paperwork Federal Housing Finance Agency year multiplied by the estimated Reduction Act of 1995 (PRA), the percentage of appraisers who work for (FHFA) is seeking comments on its Federal Housing Finance Agency (FHFA collection of information regarding the AMCs, then multiplied by burden hours or the Agency) is seeking public per notice. As described above, 30 minority and gender classification of comments concerning an information individuals serving on the boards of percent of the burden hours are then collection known as ‘‘Minority and assigned to each of the FDIC, OCC, and directors of the Federal Home Loan Women Inclusion,’’ which has been Bank (Banks) and of the Office of Board, while 10 percent are assigned to assigned control number 2590–0014 by FHFA. Finance under FHFA’s regulations on the Office of Management and Budget Minority and Women Inclusion (MWI), The number of appraisers who leave (OMB). FHFA intends to submit the an AMC annually, either by resigning, codified at 12 CFR part 1223, which it information collection to OMB for will soon be submitting for renewal of being laid off, or having their licenses review and approval of a three-year revoked or surrendered, is estimated to the OMB control number under the extension of the control number, which PRA. be 9,881. The burden estimate of 0.08 is due to expire on July 31, 2018. hours per notice is unchanged from the DATES: Interested persons may submit A. Need for and Use of the Information estimate provided for the currently- comments on or before July 16, 2018. Collection approved ICR. Therefore, the estimated The Federal Home Loan Bank System total hour burden is: 9,881 notices × ADDRESSES: Submit comments to FHFA, consists of eleven regional Banks and 0.08 hours = 790 hours (rounded to the identified by ‘‘Proposed Collection; the Office of Finance, which issues and nearest whole number). The estimated Comment Request: ‘Minority and services the Banks’ debt securities. The burden hours attributable to FHFA are Women Inclusion, (No. 2018–N–06)’ ’’ Banks are wholesale financial 790 hours × 10 percent = 79 hours. by any of the following methods: • Agency website: www.fhfa.gov/ institutions, organized under authority C. Comments Request open-for-comment-or-input. of the Federal Home Loan Bank Act • FHFA requests written comments on Federal eRulemaking Portal: http:// (Bank Act) to serve the public interest the following: (1) Whether the collection www.regulations.gov. Follow the by enhancing the availability of instructions for submitting comments. If residential housing finance and 18 The number of states includes all U.S. states, you submit your comment to the community lending credit through their territories, and districts to include: The Federal eRulemaking Portal, please also member institutions and, to a limited Commonwealth of the Northern Mariana Islands; send it by email to FHFA at extent, through certain eligible non- the District of Columbia; Guam; Puerto Rico; and [email protected] to ensure member entities. Each Bank is the U.S. Virgin Islands. 19 timely receipt by the agency. structured as a regional cooperative that The CFPB conducted a survey of 9 AMCs in • 2013 regarding the provisions in the regulation and Mail/Hand Delivery: Federal is owned and controlled by member the related PRA burden. Housing Finance Agency, Eighth Floor, financial institutions located within its

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district, which are also its primary nominees for positions on boards of Office of Finance is required to customers. The Bank Act vests the directors and engage in recruiting and implement to promote diversity in all of management of each Bank in a board of outreach directed at encouraging its business and activities ‘‘at all levels’’ directors that consists of two types of individuals who are minorities, women and, specifically, to encourage diversity directors: (1) Member directors, who are and individuals with disabilities to seek in the nomination and solicitation of drawn from the officers and directors of or apply for employment with the nominees for members of its boards of member institutions located in the regulated entity.’’ 6 directors. FHFA also uses the Bank’s district and who are elected to In conformity with the statutory information to establish a baseline to represent members in a particular state requirements, FHFA’s MWI regulations analyze future trends related to the in that district; and (2) independent require that each Bank and the Office of diversity of the boards of directors of the directors, who are unaffiliated with any Finance submit to FHFA an annual Banks and the Office of Finance and to of the Bank’s member institutions, but report describing, among other things, assess the effectiveness of the strategies who reside in the Bank’s district and are its efforts to promote diversity at all developed by the Banks and the Office elected on an at-large basis.1 The Office levels of management and employment, of Finance for promoting, developing, of Finance is also governed by a board and the results of those efforts.7 In order and retaining diverse board talent. of directors, which consists of the to provide a quantitative basis upon B. Burden Estimate presidents of the eleven Banks and five which to assess the results of those independent directors.2 efforts, FHFA’s regulations require that FHFA estimates the total annual hour Section 1319A of the Federal Housing each Bank and the Office of Finance set burden imposed upon respondents by Enterprises Financial Safety and forth in in their respective annual this information collection to be 20 Soundness Act of 1992 (Safety and reports the demographic data reported hours. This is based on estimates that Soundness Act) requires that each of the on the EEO–1 form, which they are 200 Bank and Office of Finance Banks establish an Office of Minority required to file annually with the Equal Directors will respond annually, with and Women Inclusion (OMWI) to be each response taking an average of 0.1 Employment Opportunity Commission × responsible for all matters relating to (EEOC).8 The EEO–1 form requires that hours (6 minutes) (200 respondents diversity in its management, each respondent provide race, ethnicity 0.1 hours = 20 hours). employment, and business activities, in and gender information for its C. Comments Request accordance with requirements employees, broken down into various FHFA requests written comments on established by FHFA.3 Section 1319A job categories. Because the EEO–1 form also requires that each Bank implement the following: (1) Whether the collection does not require that a respondent of information is necessary for the standards and procedures to ensure, to provide information on board directors, the maximum extent possible, the proper performance of FHFA functions, FHFA cannot use the EEO–1 data to including whether the information has inclusion and utilization of women and assess the effectiveness of the Bank minorities ‘‘at all levels’’ of its business practical utility; (2) the accuracy of System’s efforts to ‘‘encourage the FHFA’s estimates of the burdens of the and activities, and submit an annual consideration of diversity in nominating report to FHFA detailing actions taken collection of information; (3) ways to or soliciting nominees for positions on enhance the quality, utility, and clarity to achieve those goals.4 boards of directors.’’ FHFA’s MWI regulations implement of the information collected; and (4) Therefore, in order to enable FHFA to ways to minimize the burden of the those statutory requirements and also assess those efforts, the MWI regulations extend the requirements to the Office of collection of information on separately require that the annual respondents, including through the use Finance. The regulations require reports set forth ‘‘[d]ata showing for the generally that each Bank and the Office of automated collection techniques or reporting year by minority and gender other forms of information technology. of Finance ‘‘develop, implement, and classification, the number of individuals maintain policies and procedures to on the board of directors of each Bank Dated: May 10, 2018. ensure, to the maximum extent possible and the Office of Finance,’’ using the Kevin Winkler, in balance with financially safe and same racial and ethnic classifications Chief Information Officer, Federal Housing sound business practices, the inclusion that are used on the EEO–1 form (which Finance Agency. and utilization of minorities, women, comply with OMB’s ‘‘Statistical Policy [FR Doc. 2018–10431 Filed 5–15–18; 8:45 am] individuals with disabilities, and Directive No. 15, Race and Ethnic BILLING CODE 8070–01–P minority-, women-, and disabled-owned Standards for Federal Statistics and businesses in all business and activities Administrative Reporting’’).9 The and at all levels of the regulated entity, regulation requires that each Bank and FEDERAL RESERVE SYSTEM including in management, employment, the Office of Finance collect that data procurement, insurance, and all types of ‘‘through an information collection Agency Information Collection 5 contracts.’’ In recognition of the fact requesting each director’s voluntary Activities; Announcement of Board that each Bank is required by statute to self-identification of his or her minority Approval Under Delegated Authority promote diversity and inclusion ‘‘at all and gender classification without and Submission to OMB levels’’ of its business and activities, the personally identifiable information.’’ AGENCY: Board of Governors of the MWI regulations further require that the FHFA uses the information collected Banks’ policies and procedures (as well Federal Reserve System. under this control number to assess the SUMMARY: as those of the Office of Finance) The Board of Governors of the effectiveness of the policies and Federal Reserve System (Board) is ‘‘[e]ncourage the consideration of procedures that each Bank and the diversity in nominating or soliciting adopting a proposal to extend for three years, with revision, the Registration 6 See 12 CFR 1223.21(b)(7). Statement for Persons Who Extend 1 See 12 U.S.C. 1427(a)(1), (b), (d). 7 See 12 CFR 1223.22(a). 2 Credit Secured by Margin Stock (Other See 12 CFR 1273.7(a). 8 See 12 CFR 1223.23(b)(1). As required by 29 3 See 12 U.S.C. 4520(a). CFR 1602.7, each Bank and the Office of Finance Than Banks, Brokers, or Dealers) (FR G– 4 See 12 U.S.C. 4520(b), (d). annually files an EEO–1 form with the EEOC. 1), the Deregistration Statement for 5 See 12 CFR 1223.21(b). 9 See 12 CFR 1223.23(b)(10)(i). Persons Registered Pursuant to

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Regulation U (FR G–2), and the Annual Statement for Persons Registered consist of three parts. The borrower Report (FR G–4), and to extend for three Pursuant to Regulation U; Annual completes Part I of the reporting form years, without revision, the Statement of Report. and is required to do the following: Purpose for an Extension of Credit Agency form number: FR G–1; FR G– State the amount of the loan and Secured by Margin Stock by a Person 2; FR G–4. whether the purpose of the loan is to Subject to Registration Under OMB control number: 7100–0011. purchase, carry, or trade in securities Regulation U (FR G–3), the Statement of Effective date: July 1, 2018. (pursuant to the Board’s Regulation T) Purpose for an Extension of Credit by a Frequency: FR G–1 and FR G–2, On or purchase or carry margin stock Creditor (FR T–4), and the Statement of occasion; FR G–4, annually. (pursuant to Regulation U) and, if not, Purpose for an Extension of Credit Estimated number of respondents: 89. describe the specific purpose of the Secured by Margin Stock (FR U–1). Estimated average hours per response: loan. FR T–4 respondents must also These six data collections are FR G–1, 2.5; FR G–2, 0.25; FR G–4, 2. answer a question as to whether the collectively known as the Margin Credit Estimated annual burden hours: 160. securities serving as collateral will be Reports. The revisions will be General description of report: The delivered against payment. The applicable as of July 1, 2018, instead of registration statement (FR G–1) is borrower must sign and date the April 1, 2018, as proposed. required to enable the Federal Reserve reporting form. The lender completes to identify nonbank lenders subject to FOR FURTHER INFORMATION CONTACT: Part II, which may entail listing and the Board’s Regulation U, to verify Federal Reserve Board Clearance valuing any collateral. The lender then compliance with the regulation, and to Officer—Nuha Elmaghrabi—Office of signs and dates Part III of the reporting monitor margin credit. In addition, the Chief Data Officer, Board of form, acknowledging that the customer’s registered nonbank lenders can be Governors of the Federal Reserve statement is accepted in good faith. The subject to periodic review by the Board, System, Washington, DC, 20551 (202) lender is required to hold the reporting the National Credit Union 452–3829. Telecommunications Device forms for at least three years after the Administration, and the Farm Credit for the Deaf (TDD) users may contact credit is extinguished. The Federal Administration. Reserve System does not collect or (202) 263–4869, Board of Governors of The deregistration statement (FR G–2) the Federal Reserve System, process this information, but the is used by nonbank lenders to terminate information required on the form may Washington, DC 20551. OMB Desk its registration if their margin credit Officer—Shagufta Ahmed—Office of be reviewed by Federal Reserve activities no longer exceed the examiners to assess compliance with the Information and Regulatory Affairs, regulatory threshold found in Office of Management and Budget, New Securities Exchange Act of 1934 (the Regulation U. Under section 221.3(b)(2) Act) and Regulation T. Executive Office Building, Room 10235, of Regulation U, a registered nonbank Legal authorization and 725 17th Street NW, Washington, DC lender may apply to terminate its confidentiality: These reports are 20503 or by fax to (202) 395–6974. registration if the lender has not, during authorized by section 7 of the Act (15 SUPPLEMENTARY INFORMATION: On June the preceding six calendar months, had U.S.C. 78g). In addition, the FR T–4 is 15, 1984, the Office of Management and more than $200,000 of such credit required by section 220.6 of Regulation Budget (OMB) delegated to the Board outstanding. T (12 CFR 220.6), the FR U–1 is required authority under the Paperwork The information submitted on the by sections 221.3(c)(1)(i) and (2)(i) of Reduction Act (PRA) to approve of and annual report (FR G–4) is required Regulation U (12 CFR 221.3(c)(1)(i) and assign OMB control numbers to pursuant to Regulation U to enable the (2)(i)), and the FR G–1, FR G–2, FR G– collection of information requests and Federal Reserve to monitor the amount 3, and FR G–4 are required by sections requirements conducted or sponsored of credit extended by nonbank lenders 221.3(b)(1), (2), and (3), and (c)(1)(ii) by the Board. Board-approved that is secured by margin stock. and (2)(ii) of Regulation U (12 CFR collections of information are 2. Report title: Statement of Purpose 221.3(b)(1), (2), and (3), and (c)(1)(ii) incorporated into the official OMB for an Extension of Credit Secured by and (2)(ii)). inventory of currently approved Margin Stock by a Person Subject to The FR G–1 and FR G–4 collect collections of information. Copies of the Registration Under Regulation U; financial information, including a Paperwork Reduction Act Submission, Statement of Purpose for an Extension balance sheet, from nonbank lenders supporting statements and approved of Credit by a Creditor; Statement of subject to Regulation U. Some of these collection of information instrument(s) Purpose for an Extension of Credit lenders may be individuals or nonbank are placed into OMB’s public docket Secured by Margin Stock. entities that do not make this files. The Federal Reserve may not Agency form number: FR G–3; FR T– information publicly available; release conduct or sponsor, and the respondent 4; FR U–1. could therefore cause substantial harm is not required to respond to, an OMB control number: 7100–0018; to the competitive position of the information collection that has been 7100–0019; 7100–0115. respondent or result in an unwarranted extended, revised, or implemented on or Effective date: July 1, 2018. invasion of personal privacy. In those after October 1, 1995, unless it displays Frequency: On occasion. cases, the information could be a currently valid OMB control number. Estimated number of respondents: FR withheld under exemption 4 or Final approval under OMB delegated G–3, 6; FR T–4, 4; FR U–1, 4. exemption 6 of the Freedom of authority of the extension for three Estimated average hours per response: Information Act (5 U.S.C. 552(b)(4) and years, with revision, of the FR G–1, FR FR G–3, 0.17; FR T–4, 0.17; FR U–1, (6)), respectively. Confidentiality G–2, and FR G–4 reports, as well as 0.17. determinations will be made on a case- extension for three years, without Estimated annual burden hours: FR by-case basis. Because the FR G–3, FR revision, of the FR G–3, FR T–4, and FR G–3, 20; FR T–4, 14; FR U–1, 51. T–4, and FR U–1 are not submitted to U–1: General description of reports: The FR the Federal Reserve System and FR G– 1. Report title: Registration Statement G–3, FR T–4, and FR U–1 purpose 2 does not contain any information for Persons Who Extend Credit Secured statements, which are completed by the considered to be confidential, no by Margin Stock (Other Than Banks, borrower and the lender (brokers and confidentiality determination is Brokers, or Dealers); Deregistration dealers, in the case of the FR T–4), necessary for these reports.

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Current actions: On January 23, 2018, Retained Annuity Trust #2, with • Mail: General Services the Board published a notice in the William C. Martin as trustee, all of Ann Administration, Regulatory Secretariat Federal Register (83 FR 3146) Arbor, Michigan; to join the Martin Division (MVCB), 1800 F Street NW, requesting public comment for 60 days Family Control Group approved on Washington, DC 20405. ATTN: Ms. on the extension, with revision, of the December 15, 2017, and acquire voting Mandell/IC 9000–0035, Claims and FR G–1, FR G–2, and FR G–4, as well shares of Arbor Bancorp, Inc., and Appeals. as the extension, without revision, of thereby indirectly acquire voting shares Instructions: Please submit comments the FR G–3, FR T–4, and FR U–1. The of Bank of Ann Arbor, both of Ann only and cite Information Collection Board proposed to revise the Arbor, Michigan. 9000–0035, Claims and Appeals, in all instructions for the FR G–1, FR G–2, and Board of Governors of the Federal Reserve correspondence related to this FR G–4 to require respondents to submit System, May 11, 2018. collection. Comments received generally Portable Document Format (PDF) Yao-Chin Chao, will be posted without change to http:// versions of the reporting forms and www.regulations.gov, including any Assistant Secretary of the Board. attachments to a designated Federal personal and/or business confidential Reserve Board email address. The Board [FR Doc. 2018–10438 Filed 5–15–18; 8:45 am] information provided. To confirm also proposed to consolidate all six BILLING CODE P receipt of your comment(s), please Margin Credit Reports under one OMB check http://www.regulations.gov, control number, 7100–0011, which approximately two to three days after currently only includes the FR G–1, FR DEPARTMENT OF DEFENSE submission to verify posting (except G–2, and FR G–4. The comment period allow 30 days for posting of comments expired on March 26, 2018. The Board GENERAL SERVICES submitted by mail). ADMINISTRATION did not receive any comments. FOR FURTHER INFORMATION CONTACT: Mr. Accordingly, the revisions will be Charles Gray, Procurement Analyst, implemented as proposed; provided NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Federal Acquisition Policy Division, that, the effective date of the revisions GSA, 703–795–6328 or via email at will be July 1, 2018, rather than April [OMB Control No. 9000–0035; Docket No. [email protected]. 1, 2018, as proposed. 2018–0003; Sequence No. 7] SUPPLEMENTARY INFORMATION: Board of Governors of the Federal Reserve System, May 11, 2018. Information Collection; Claims and A. Purpose Appeals Michele Taylor Fennell, It is the Government’s policy to try to resolve all contractual issues by mutual Assistant Secretary of the Board. AGENCIES: Department of Defense (DOD), agreement at the contracting officer’s [FR Doc. 2018–10410 Filed 5–15–18; 8:45 am] General Services Administration (GSA), level without litigation. Reasonable BILLING CODE 6210–01–P and National Aeronautics and Space efforts should be made to resolve Administration (NASA). controversies prior to submission of a FEDERAL RESERVE SYSTEM ACTION: Notice of request for public contractor’s claim. The Contract comments regarding an extension to an Disputes Act of 1978 (41 U.S.C. 7103) Change in Bank Control Notices; existing OMB clearance. requires that claims exceeding $100,000 Acquisitions of Shares of a Bank or must be accompanied by a certification Bank Holding Company SUMMARY: Under the provisions of the that (1) the claim is made in good faith; Paperwork Reduction Act, the (2) supporting data are accurate and The notificants listed below have Regulatory Secretariat Division will be complete; and (3) the amount requested applied under the Change in Bank submitting to the Office of Management accurately reflects the contract Control Act (12 U.S.C. 1817(j)) and and Budget (OMB) a request to review adjustment for which the contractor § 225.41 of the Board’s Regulation Y (12 and approve an extension of a believes the Government is liable. The CFR 225.41) to acquire shares of a bank previously approved information information, as required by FAR clause or bank holding company. The factors collection requirement concerning 52.233–1, Disputes, is used by a that are considered in acting on the claims and appeals. contracting officer to decide or resolve notices are set forth in paragraph 7 of the claim. Contractors may appeal the the Act (12 U.S.C. 1817(j)(7)). DATES: Submit comments on or before The notices are available for July 16, 2018. contracting officer’s decision by immediate inspection at the Federal ADDRESSES: Submit comments submitting written appeals to the Reserve Bank indicated. The notices identified by Information Collection appropriate officials. also will be available for inspection at 9000–0035, Claims and Appeals, by any B. Annual Reporting Burden the offices of the Board of Governors. of the following methods: • Respondents: 4,500. Interested persons may express their Regulations.gov: http:// Responses per Respondent: 3. views in writing to the Reserve Bank www.regulations.gov. Annual Responses: 13,500. indicated for that notice or to the offices Submit comments via the Federal Hours Per Response: 1. of the Board of Governors. Comments eRulemaking portal by searching the Total Burden Hours: 13,500. must be received not later than May 31, OMB control number. Select the link C. Public Comments 2018. ‘‘Submit a Comment’’ that corresponds A. Federal Reserve Bank of Chicago with ‘‘Information Collection 9000– Public comments are particularly (Colette A. Fried, Assistant Vice 0035, Claims and Appeals’’. Follow the invited on: Whether this collection of President) 230 South LaSalle Street, instructions provided at the ‘‘Submit a information is necessary for the proper Chicago, Illinois 60690–1414: Comment’’ screen. Please include your performance of functions of the FAR, 1. The William C. Martin 2018 name, company name (if any), and and whether it will have practical Grantor Retained Annuity Trust #1, with ‘‘Information Collection 9000–0035, utility; whether our estimate of the William C. Martin as trustee, and the Claims and Appeals’’ on your attached public burden of this collection of William C. Martin 2018 Grantor document. information is accurate, and based on

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valid assumptions and methodology; DATES: The rescission is as of May 16, OMB No.: 0970–0383. ways to enhance the quality, utility, and 2018. Description: The Family and Youth clarity of the information to be FOR FURTHER INFORMATION CONTACT: For Services Bureau (FYSB) and the Office collected; and ways in which we can clarification of content, please contact of Planning, Research, Evaluation minimize the burden of the collection of Mr. Cy Greenidge, Office of (OPRE) in the Administration for information on those who are to Government-wide Policy, Office of Children and Families (ACF) are respond, through the use of appropriate Asset and Transportation Management, requesting to continue collecting data as technological collection techniques or at 202–219–2349, or by email at part of a currently approved information other forms of information technology. [email protected]. Please cite Notice collection (OMB No. 0970–0383). The OBTAINING COPIES OF PROPOSALS: of FTR Bulletin 18–04. purpose is to continue baseline data Requesters may obtain a copy of the SUPPLEMENTARY INFORMATION: Executive collection at study enrollment and information collection documents from Order 13777, Enforcing the Regulatory the General Services Administration, Reform Agenda, Section 3, paragraph follow-up data collection for the Regulatory Secretariat Division (MVCB), (d)(ii), states in part, the Regulatory Evaluation of the Transitional Living 1800 F Street NW, Washington, DC Reform Task Force shall attempt to Program (TLP). The TLP evaluation was 20405, telephone 202–501–4755. Please identify regulations that are outdated, designed to examine the effects of cite OMB Control No. 9000–0035, unnecessary, or ineffective. GSA has FYSB’s Transitional Living Program on Claims and Appeals, in all conducted a thorough review of all FTR runaway and homeless youth, focusing correspondence. bulletins on the FTR Travel/Per Diem on such outcomes as housing and Dated: May 10, 2018. Bulletins website (https://www.gsa.gov/ homelessness, education or training, Lorin Curit, policy-regulations/regulations/federal- employment, social connections, socio- travel-regulation/federal-travel- Director, Federal Acquisition Policy Division, emotional well-being, and risk Office of Governmentwide Acquisition Policy, regulation-and-related-files#Travel behaviors. Office of Acquisition Policy, Office of PerDiemBulletins) and determined that Data collection will include three some of the Bulletins contain outdated, Governmentwide Policy. primary surveys, previously approved duplicative, expired, or inapplicable [FR Doc. 2018–10408 Filed 5–15–18; 8:45 am] by OMB: (1) A survey administered at BILLING CODE 6820–EP–P content. FTR Bulletin 18–04 lists all rescinded bulletins meeting one of the the time of TLP enrollment (baseline), aforementioned criterion. (2) a survey administered 6 months after enrollment, which will collect GENERAL SERVICES Dated: May 11, 2018. information on short-terms outcomes; ADMINISTRATION Alexander Kurien, and (3) a survey administered at 12 [Notice–MA–2018–03; Docket No. 2018– Deputy Associate Administrator, Office of months, which will collect information 0002, Sequence No. 7] Asset and Transportation Management, on longer-term outcomes. Participants Office of Government-wide Policy. will be enrolled through the TLP study Rescission of FTR Bulletins [FR Doc. 2018–10436 Filed 5–15–18; 8:45 am] sites. BILLING CODE 6820–14–P AGENCY: Office of Government-wide Respondents: Runaway and homeless Policy (OGP), General Services youth ages 16 to 22 who agree to Administration (GSA). DEPARTMENT OF HEALTH AND participate in the study upon ACTION: Notice of Federal Travel HUMAN SERVICES enrollment into one of the TLP study Regulation (FTR) Bulletin 18–04, sites. rescission of FTR Bulletins. Administration for Children and SUMMARY: GSA is officially rescinding Families various FTR bulletins to ensure the Proposed Information Collection Travel/Per Diem Bulletin section on the Activity; Comment Request agency’s FTR website displays only current information. Agencies’ policies Title: Evaluation of the Transitional should be updated as warranted. Living Program (TLP).

ANNUAL BURDEN ESTIMATES

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

Young Adult Baseline Survey ...... 600 200 1 0.62 124 Young Adult 6-Month Follow Up Survey ...... 600 200 1 0.61 122 Young Adult 12-Month Follow Up Survey ...... 600 200 1 0.61 122

Estimated Total Burden Hours: 368. information collection described above. Washington, DC 20201, Attn: OPRE In compliance with the requirements Copies of the proposed collection of Reports Clearance Officer. Email of Section 3506(c)(2)(A) of the information can be obtained and address: OPREinfocollection@ Paperwork Reduction Act of 1995, the comments may be forwarded by writing acf.hhs.gov. All requests should be Administration for Children and to the Administration for Children and identified by the title of the information Families is soliciting public comment Families, Office of Planning, Research, collection. on the specific aspects of the and Evaluation, 330 C Street SW,

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The Department specifically requests MD 20993–0002. Answers to commonly based point-of-care and laboratory-based comments on (a) whether the proposed asked questions including information in vitro diagnostic devices indicated for collection of information is necessary regarding special accommodations due use as aids in the diagnosis of human for the proper performance of the to a disability, visitor parking, and immunodeficiency virus (HIV) functions of the agency, including transportation may be accessed at: infection. The devices that will be whether the information shall have https://www.fda.gov/Advisory discussed by the Committee during the practical utility; (b) the accuracy of the Committees/AboutAdvisoryCommittees/ meeting are post-amendment devices agency’s estimate of the burden of the ucm408555.htm. that currently are classified into class III proposed collection of information; (c) FOR FURTHER INFORMATION CONTACT: under section 513(f)(1) of the Federal the quality, utility, and clarity of the Bryan Emery, Division of Scientific Food, Drug, and Cosmetic Act (21 U.S.C. information to be collected; and (d) Advisors and Consultants, Center for 360c(f)(1)). ways to minimize the burden of the Biologics Evaluation and Research FDA intends to make background collection of information on (CBER), Food and Drug Administration, material available to the public respondents, including through the use 10903 New Hampshire Ave., Bldg. 71, approximately 2 weeks and no later of automated collection techniques or Rm. 6268, Silver Spring, MD 20993– than 2 business days before the meeting. other forms of information technology. 0002, 240–402–8054, bryan.emery@ If FDA is unable to post the background Consideration will be given to fda.hhs.gov; or Joanne Lipkind, Division material on its website prior to the comments and suggestions submitted of Scientific Advisors and Consultants, meeting, the background material will within 60 days of this publication. CBER, Food and Drug Administration, be made publicly available at the location of the advisory committee Mary B. Jones, 10903 New Hampshire Ave., Bldg. 71, Rm. 6270, Silver Spring, MD 20993– meeting, and the background material ACF/OPRE Certifying Officer. 0002, 240–402–8106, joanne.lipkind@ will be posted on FDA’s website after [FR Doc. 2018–10461 Filed 5–15–18; 8:45 am] fda.hhs.gov; or FDA Advisory the meeting. Background material is BILLING CODE 4184–01–P Committee Information Line, 1–800– available at https://www.fda.gov/ 741–8138 (301–443–0572 in the AdvisoryCommittees/Calendar/ Washington, DC area). A notice in the default.htm. Scroll down to the DEPARTMENT OF HEALTH AND Federal Register about last minute appropriate advisory committee meeting HUMAN SERVICES modifications that impact a previously link. Procedure: Interested persons may announced advisory committee meeting Food and Drug Administration present data, information, or views, cannot always be published quickly orally or in writing, on issues pending [Docket No. FDA–2018–N–1773] enough to provide timely notice. before the committee. Written Therefore, you should always check the submissions may be made to the contact Blood Products Advisory Committee; Agency’s website at https:// person on or before July 11, 2018. Oral Notice of Meeting www.fda.gov/AdvisoryCommittees/ presentations from the public will be default.htm and scroll down to the AGENCY: Food and Drug Administration, scheduled between approximately 2:15 appropriate advisory committee meeting HHS. p.m. and 3:15 p.m. on July 18, 2018, and ACTION: Notice. link, or call the advisory committee between 12:30 p.m. and 1:30 p.m. on information line to learn about possible July 19, 2018. Those individuals SUMMARY: The Food and Drug modifications before coming to the interested in making formal oral Administration (FDA) announces a meeting. For those unable to attend in presentations should notify the contact forthcoming public advisory committee person, the meeting will be also be person and submit a brief statement of meeting of the Blood Products Advisory available via webcast. The webcast will the general nature of the evidence or Committee. The general function of the be available at the following link on arguments they wish to present, the Blood Products Advisory Committee is both days: https://collaboration.fda.gov/ names and addresses of proposed to provide advice and recommendations bpac0718/. participants, and an indication of the to the Agency on regulatory issues SUPPLEMENTARY INFORMATION: approximate time requested to make related to blood and products derived Agenda: On July 18, 2018, the Blood their presentation on or before July 5, from blood. On the first day of the Products Advisory Committee will meet 2018. Time allotted for each meeting, the Committee will provide in open session to discuss and provide presentation may be limited. If the advice regarding bacterial risk control advice regarding bacterial risk control number of registrants requesting to strategies to enhance the safety and strategies for blood collection speak is greater than can be reasonably availability of platelets for transfusion. establishments and transfusion services accommodated during the scheduled On the second day of the meeting, the to enhance the safety and availability of open public hearing session, FDA may Committee, supplemented with platelets for transfusion. The Committee conduct a lottery to determine the members from the Microbiology Devices will discuss the available strategies to speakers for the scheduled open public Panel of the Medical Devices Advisory control the risk of bacterial hearing session. The contact person will Committee, will function as a medical contamination of platelets with 5-day notify interested persons regarding their device panel to provide advice and and 7-day dating, including bacterial request to speak by July 6, 2018. recommendations to the Agency on testing using culture-based devices and Persons attending FDA’s advisory classification of devices. The meeting rapid bacterial detection devices and committee meetings are advised that the will be open to the public. implementation of pathogen reduction Agency is not responsible for providing DATES: The meeting will be held on July technology. access to electrical outlets. 18, 2018, from 8 a.m. to 5 p.m. and July On July 19, 2018, the Committee will FDA welcomes the attendance of the 19, 2018, from 8 a.m. to 3 p.m. function as a medical device panel. The public at its advisory committee ADDRESSES: FDA White Oak Campus, Committee will meet in open session to meetings and will make every effort to 10903 New Hampshire Ave., Bldg. 31 discuss and provide advice regarding accommodate persons with disabilities. Conference Center, the Great Room (Rm. the device reclassification from class III If you require accommodations due to a 1503, sections B and C), Silver Spring, to class II of nucleic acid and serology- disability, please contact Bryan Emery

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or Joanne Lipkin at least 7 days in in brackets in the heading of this characteristics of the target audience— advance of the meeting. document. its perceptions, knowledge, attitudes, FDA is committed to the orderly FOR FURTHER INFORMATION CONTACT: beliefs, and behaviors—and use these in conduct of its advisory committee Amber Sanford, Office of Operations, the development of appropriate survey/ meetings. Please visit our website at Food and Drug Administration, Three research questions, study stimuli, or https://www.fda.gov/Advisory White Flint North, 10A–12M, 11601 communications; (2) more efficiently Committees/AboutAdvisoryCommittees/ Landsdown St., North Bethesda, MD and effectively design survey/research ucm111462.htm for procedures on 20852, 301–796–8867, PRAStaff@ questions and study stimuli; and (3) public conduct during advisory fda.hhs.gov. more efficiently and effectively design committee meetings. experimental studies. SUPPLEMENTARY INFORMATION: In Notice of this meeting is given under FDA is requesting approval of this compliance with 44 U.S.C. 3507, FDA the Federal Advisory Committee Act (5 new generic clearance for collecting U.S.C. app. 2). has submitted the following proposed collection of information to OMB for information through the use of Dated: May 10, 2018. review and clearance. qualitative methods (i.e., individual Leslie Kux, interviews, small group discussions, Generic Clearance for the Collection of Associate Commissioner for Policy. and focus groups) for studies involving Qualitative Data on Tobacco Products all tobacco products regulated by FDA. [FR Doc. 2018–10414 Filed 5–15–18; 8:45 am] and Communications This information will be used as a first BILLING CODE 4164–01–P OMB Control Number 0910–0796— step to explore concepts of interest and Extension assist in the development of quantitative study proposals, complementing other DEPARTMENT OF HEALTH AND Under section 1003(d)(2)(D) of the HUMAN SERVICES important research efforts at FDA. This Federal Food, Drug, and Cosmetic Act information may also be used to help (21 U.S.C. 393(d)(2)(D)), FDA is Food and Drug Administration identify and develop communication authorized to conduct educational and messages, which may be used in public information programs. [Docket No. FDA–2014–N–0987] education campaigns. Focus groups play In conducting studies relating to the an important role in gathering regulation and communications related Agency Information Collection information because they allow for an to tobacco products, FDA will need to Activities; Submission for Office of in-depth understanding of individual employ formative qualitative research Management and Budget Review; attitudes, beliefs, motivations, and including focus groups, usability Comment Request; Generic Clearance feelings. Focus group research serves testing, and/or in-depth interviews for the Collection of Qualitative Data the narrowly defined need for direct and (IDIs) to assess knowledge and on Tobacco Products and informal public opinion on a specific perceptions about tobacco-related topics Communications topic. In the Federal Register of with specific target audiences. The November 17, 2017 (82 FR 54351), FDA AGENCY: information collected will serve three Food and Drug Administration, published a 60-day notice requesting major purposes. First, formative HHS. public comment on the proposed ACTION: Notice. research will provide critical knowledge about target audiences. FDA must collection of information. FDA received one comment by a private citizen that SUMMARY: The Food and Drug understand people’s knowledge and was PRA-related. Administration (FDA) is announcing perceptions about tobacco-related topics that a proposed collection of before developing survey/research (Comment) The commenter stated that information has been submitted to the questions as well as stimuli for FDA should use the data we have Office of Management and Budget experimental studies. Second, by collected in the past instead of (OMB) for review and clearance under collecting communications usability collecting new information. The the Paperwork Reduction Act of 1995 information, FDA will be able to serve comment does not go in detail or (PRA). and respond to the ever-changing provide any alternatives. demands of consumers of tobacco (Response) This collection is a DATES: Fax written comments on the products. Additionally, we will be able valuable tool for conducting research. collection of information by June 15, to determine the best way to present The studies FDA has conducted through 2018. messages. Third, initial testing will this collection of information have been ADDRESSES: To ensure that comments on allow FDA to assess consumer essential in helping FDA meet its the information collection are received, understanding of survey/research mission as a science-based regulatory OMB recommends that written questions and study stimuli. Focus agency and implementing the Family comments be faxed to the Office of groups and/or IDIs with a sample of the Smoking Prevention and Tobacco Information and Regulatory Affairs, target audience will allow FDA to refine Control Act (Pub. L. 111–31). Future OMB, Attn: FDA Desk Officer, Fax: 202– the survey/research questions and study submissions submitted under this 395–7285, or emailed to oira_ stimuli while they are still in the generic clearance will continue to assist [email protected]. All developmental stage. FDA will collect, FDA in its mission to protect and comments should be identified with the analyze, and interpret information promote public health. OMB control number 0910–0796. Also gathered through this generic clearance FDA estimates the burden of this include the FDA docket number found in order to: (1) Better understand collection of information as follows:

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TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Number of Total Average Type of interview Number of responses per annual burden per Total hours respondents respondent responses response

In-Person Individual IDIs ...... 1,092 1 1,092 1 ...... 1,092 IDI Screener ...... 1,800 1 1,800 .083 (5 minutes) ...... 149 Focus Group Interviews ...... 4,701 1 4,701 1.5 ...... 7,052 Focus Group Screener ...... 3,996 1 3,996 .25 (15 minutes) ...... 999 Usability Testing ...... 2,322 1 2,322 .5 (30 minutes) ...... 1,161 Usability Testing Screener ...... 2,028 1 2,028 .083 (5 minutes) ...... 168

Total ...... 10,621 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

The number of respondents to be comments or requesting information, subrecipient’s types and number of included in each new pretest may vary, please include the document identifier services provided, estimated costs of depending on the nature of the material 0990—New—30D and project title for services, service coordination between or message being tested and the target reference. grantees or subrecipients and other audience. Table 1 provides examples of services providers, and type and SUPPLEMENTARY INFORMATION: Interested strength of relationships between the types of studies that may be persons are invited to send comments grantees and subrecipients. This administered and estimated burden regarding this burden estimate or any information will enable HHS to levels during a 3-year period. Time to other aspect of this collection of understand the structure of the grantee/ read, view, or listen to the message information, including any of the subrecipient network and inform being tested is built into the ‘‘Hours per following subjects: (1) The necessity and recommendations for more efficient Response’’ figures. utility of the proposed information FDA has updated the estimated network management and distribution collection for the proper performance of burden that was published in the 60-day of support. the agency’s functions; (2) the accuracy notice. The estimated burden for this TVAP, as authorized by the of the estimated burden; (3) ways to collection has increased by 4,437 hours Trafficking Victims Protection Act of enhance the quality, utility, and clarity from 6,184 to 10,621. FDA attributes 2000, provides comprehensive case of the information to be collected; and this increase to adding usability testing, management services to foreign-born (4) the use of automated collection and increasing the overall number of victims of human trafficking residing in techniques or other forms of information studies planned the next 3 years. the United States. Since its inception, technology to minimize the information TVAP funding and infrastructure have Dated: May 10, 2018. collection burden. remained relatively unchanged: Services Leslie Kux, Title of the Collection: Trafficking are paid on a per capita basis, and funds Associate Commissioner for Policy. Victim Assistance Program Social are managed through three primary [FR Doc. 2018–10457 Filed 5–15–18; 8:45 am] Network Analysis—Network Survey. grantees that enter into cooperative BILLING CODE 4164–01–P Type of Collection: New. agreements with service providers OMB No. 0990–NEW—Office of the (subrecipients). Given the changing Assistant Secretary for Planning and landscape and the greater understanding DEPARTMENT OF HEALTH AND Evaluation—Administration for of the nature and extent of trafficking, HUMAN SERVICES Children and Families’ Trafficking HHS is undertaking a program [Document Identifier: OS–0990—New] Victim Assistance Program. assessment to understand whether any Abstract efficiencies can be gained in the Agency Information Collection program administration and structure. Request. 30-Day Public Comment The Office of the Assistant Secretary To supplement an earlier fiscal year Request for Planning and Evaluation (ASPE), in 2018 assessment to solicit qualitative partnership with the Administration for feedback from a range of program AGENCY: Office of the Secretary, HHS. Children and Families (ACF), U.S. stakeholders, the information collected ACTION: Notice. Department of Health and Human for this program survey aims to help Services (HHS) is requesting Office of HHS determine if efficiencies can be SUMMARY: In compliance with the Management and Budget (OMB) gained through improved coordination requirement of the Paperwork approval for a new information among TVAP grantees, TVAP Reduction Act of 1995, the Office of the collection request titled, ‘‘Trafficking subrecipients, and other service Secretary (OS), Department of Health Victim Assistance Program (TVAP) providers. and Human Services, is publishing the Social Network Analysis—Network Data will be collected through an following summary of a proposed Survey.’’ Under the guidance of ASPE electronic survey of fiscal year 2016 collection for public comment. and ACF, a contractor is carrying out TVAP grantees and subrecipients. Key DATES: Comments on the ICR must be this assessment. The data collected and staff at grantee sites and subrecipient received on or before June 15, 2018. analyzed under this submission will organizations will complete a self- ADDRESSES: Submit your comments to help HHS better understand the type administered online survey that will [email protected] or via and extent of the relationship between include questions about each facsimile to (202) 395–5806. the TVAP grantees, TVAP subrecipients, respondent’s services provided, FOR FURTHER INFORMATION CONTACT: and other service providers operating in estimated costs of services, service Sherrette Funn, [email protected] TVAP subrecipient areas. It will also coordination between grantees or or (202) 795–7714. When submitting help illuminate each grantee’s and subrecipients, and type and strength of

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relationships between grantees and network to depict how grantee and and identify potential opportunities for subrecipients. With this data, the subrecipient organizations collaborate improving the efficiency of the network. contractor, to inform ASPE and ACF, with one another through TVAP to ASPE anticipates completion of all data will build a social/organizational better understand the existing network collection activities by October 2018.

ESTIMATED ANNUALIZED BURDEN TABLE

Average Number of Number burden per Total burden Type of respondent respondents responses per response hours respondent (in hours)

TVAP grantees ...... 3 1 45/60 2.25 TVAP Subrecipients ...... 253 1 45/60 189.75

Total ...... 256 1 45/60 192

Terry Clark, SUPPLEMENTARY INFORMATION: The increase fair market access for American Asst. Paperwork Reduction Act Reports United States is the world’s leader in innovators. Furthermore, HHS seeks to Clearance Officer, Office of the Secretary. biopharmaceutical innovation. identify when developed nations are [FR Doc. 2018–10394 Filed 5–15–18; 8:45 am] American innovation has improved paying less for drugs than the prices BILLING CODE 4151–05–P health and quality of life for billions of paid by Federal health programs, and people, and was made possible by our correct these inequities through better intellectual property system, decades of negotiation. DEPARTMENT OF HEALTH AND government and privately-funded HHS has already acted to increase the HUMAN SERVICES research, strong capital markets, and the affordability of medicines for millions of world’s largest scientific research base. our citizens, but is also going much Office of the Secretary By rewarding innovation through patent further in response to President Trump’s and data protection, American call to action. Through the work of the RIN 0991–ZA49 companies hold the intellectual Food and Drug Administration and the HHS Blueprint to Lower Drug Prices property rights for most new, and Centers for Medicare & Medicaid and Reduce Out-of-Pocket Costs potentially life changing, medicines. Services, HHS has tremendous ability to Our regulatory system is the most change how drugs are developed and AGENCY: Department of Health and rigorous in the world, ensuring the paid for in the United States. Human Services. safety and efficacy of drugs for The status quo is no longer ACTION: Policy Statement; Request for American patients. Medicare, Medicaid, acceptable. Millions of Americans face information. other Federal health programs, and soaring drug prices and higher out-of- private payers ensure Americans have pocket costs, while manufacturers and SUMMARY: Through this request for access to medicines, from innovative middlemen such as pharmacy benefit information, HHS seeks comment from new cures, to generic versions of managers (PBMs) and distributors interested parties to help shape future medications that have markedly benefit from rising list prices and their policy development and agency action. lowered costs for consumers. resulting higher rebates and DATES: Comments must be submitted on As part of President Trump’s bold administrative fees. An unprecedented or before July 16, 2018. plan to put American patients first, the re-examination of the whole system and ADDRESSES: You may submit comments Department of Health and Human opportunities for reform is long in one of three ways (please choose only Services has developed a overdue. We believe a national focus on one of the ways listed): comprehensive blueprint that addresses lowering list prices and out-of-pocket 1. Electronically. You may submit many of the challenges and costs has the potential to create new and electronic comments to http:// opportunities impacting American disruptive alternatives to the current www.regulations.gov. Follow the patients and consumers. The blueprint system, while maintaining its many ‘‘Submit a comment’’ instructions. covers multiple areas including, but not virtues. It is time to realign the system 2. By regular mail. You may mail limited to: in a way that promotes the development • Improving competition and ending written comments to the following of affordable innovations that improve the gaming of the regulatory process, address ONLY: Department of Health health outcomes and lower both out-of- • supporting better negotiation of pocket cost and the total cost of care. and Human Services, 200 Independence drug discounts in government-funded Ave. SW, Room 600E, Washington, DC Through this request for information, insurance programs, HHS seeks comment from interested 20201. • creating incentives for Please allow sufficient time for mailed parties to help shape future policy pharmaceutical companies to lower list development and agency action. comments to be received before the prices, and, close of the comment period. • reducing out-of-pocket spending for Table of Contents: 3. By express or overnight mail. You patients at the pharmacy and other sites may send written comments to the of care. I. Previous Actions by the Trump following address ONLY: Department of HHS also recognizes that achieving Administration A. Increasing Competition Health and Human Services, 200 the goal of putting American patients Independence Ave. SW, Room 600E, B. Better Negotiation first will require interagency C. Creating Incentives to Lower List Prices Washington, DC 20201. collaboration on pharmaceutical trade D. Reducing Patient Out-of-Pocket FOR FURTHER INFORMATION CONTACT: John policies that promote innovation, and Spending O’Brien, (202) 690–7886. are transparent, nondiscriminatory, and II. Responding to President Trump’s Call to

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Action taken steps to prioritize its review of • Finalizing changes to the Medicare A. Increasing Competition generic drug applications; issued Prescription Drug Program in the 2019 B. Better Negotiation guidance to improve efficiencies in the Part C and Part D regulation allowing for C. Creating Incentives to Lower List Prices development, review, and approval faster mid-year substitution of generic D. Reducing Patient Out-of-Pocket processes for generic drugs, including drugs onto formularies. Spending complex generic drugs; and issued • Proposing in the President’s III. Solicitation of Comments 1 A. Increasing Competition guidance to further streamline the FY2019 Budget a 5-part plan to B. Better Negotiation submission and review process for modernize the Medicare Part D program, C. Creating Incentives to Lower List Prices shared system REMS, and to allow a portion of which includes enhancing D. Reducing Patient Out-of-Pocket collective submissions to streamline the Part D plans’ negotiating power with Spending review of shared Risk Evaluation and manufacturers by changing Part D plan E. Additional Feedback Mitigation Strategies (REMS). formulary standards to require a IV. Collection of Information Requirements • FDA also announced it will minimum of one drug per category or I. Previous Actions by the Trump facilitate opportunities for enhanced class rather than two. We note that the Administration information sharing between 5-part plan is intended to be manufacturers, doctors, patients and implemented together, as eliminating The President has consistently insurers to improve patient access to even one piece of the package emphasized the need to reduce the price medical products, including through significantly changes the proposal’s of prescription drugs. The Trump value-based insurance. impacts. Administration has already taken a • Speeding Access to More • Proposing in the President’s number of significant administrative Affordable Generics by Spurring FY2019 Budget to address abusive drug steps, and proposed in the President’s Competition. Today, a generic pricing by manufacturers by: FY2019 Budget, to improve competition manufacturer that has been awarded establishing an inflation limit for and end the gaming of regulatory 180-day exclusivity for being the first reimbursement of Medicare Part B processes, support better negotiation of generic to file can ‘‘park’’ their drugs; reducing Wholesale Acquisition drug discounts through government application with FDA, preventing Cost (WAC)-Based Payment when insurance programs, create incentives additional generic manufacturers from Average Sales Price (ASP) isn’t for pharmaceutical companies to lower entering the market. The President’s available; and improving manufacturers’ list prices, and reduce consumer out-of- FY2019 Budget proposes to prevent reporting of Average Sales Prices to set pocket spending at the pharmacy and companies from using their 180-day accurate payment rates. other care settings. exclusivity to indefinitely delay real • Increasing the integrity of the A. Increasing Competition competition and savings for consumers Medicaid Drug Rebate Program, so that by seeking a legislative change to start manufacturers pay their fair share in Since the beginning of the Trump a company’s 180-day exclusivity clock rebates, by proposing in the President’s Administration, HHS has taken a in certain instances when another FY2019 Budget to remove ambiguity number of actions to increase generic application is ready for regarding how drugs should be reported competition and end the gaming of approval, but is blocked solely by such under the program. HHS is also regulatory processes that may keep drug a first applicant’s 180-day exclusivity. manually reviewing each new drug that prices artificially inflated or hinder • Finalizing a policy in which each has been reported in the Medicaid generic, branded, or biosimilar biosimilar for a given biologic gets its rebate system on a quarterly basis to competition. These efforts include: own billing and payment code under • make sure classifications are correct, Accelerating Food and Drug Medicare Part B, to incentivize and the United States took legal action Administration (FDA) approval of development of additional lower-cost against Mylan for their misclassification generic drugs. Studies show that greater biosimilars. Prior approaches to of EpiPen, resulting in an agreement for generic competition is associated with biosimilar coding and payment would Mylan to pay back $465 million in lower prices. FDA is publishing the have created a race to the bottom of rebate payments. names of drugs that have no competitors biosimilar pricing, while leaving the • Proposing in the President’s in order to spur new entrants and bring branded product untouched, making it FY2019 Budget to further clarify the prices down. Over 1,000 generic drugs an unviable market that few would want Medicaid definition of brand drugs, were approved in 2017, which is the to enter. which would address inappropriate most in FDA’s history in a calendar year B. Better Negotiation interpretations leading some by over 200 drugs. These generic manufacturers to classify certain brand approvals saved American consumers Medicare Part D has been very and over-the-counter drugs as generics and taxpayers nearly $9 billion in 2017. successful since it launched in 2006. • for Medicaid rebate purposes, reducing Drug Competition Action Plan. In However, prescription drug markets are the rebates they owe. 2017, President Trump’s FDA different than they were 12 years ago, • Proposing in the President’s established a Drug Competition Action and in some cases Part D plan sponsors FY2019 Budget to call for new Medicaid Plan to enable patients to access more may be prohibited from doing what demonstration authority for up to five affordable medications by focusing the private payers outside the Medicare states to test drug coverage and Agency’s efforts in three key areas: (1) program do to negotiate effectively and financing reforms that build on private Improving the efficiency of the generic keep costs low. More can also be done sector best practices. Participating states drug development, review, and approval across the Medicare program to provide would determine their own drug process; (2) maximizing scientific and beneficiaries with the lower costs and formularies, coupled with an appeals regulatory clarity with respect to greater price transparency resulting process to protect beneficiary access to complex generic drugs; and (3) closing from better negotiation. non-covered drugs based on medical loopholes that allow brand-name drug Since the beginning of the Trump need, and negotiate drug prices directly companies to ‘‘game’’ FDA rules in ways Administration, HHS has taken a that forestall the generic competition number of actions to support better 1 https://www.whitehouse.gov/wp-content/ Congress intended. The Agency also has negotiation. These efforts include: uploads/2018/02/budget-fy2019.pdf.

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with manufacturers. HHS and D. Reducing Patient Out-of-Pocket II. Responding to President Trump’s participating states would rigorously Spending Call to Action evaluate these demonstrations, which American patients have the right to President Trump recently reaffirmed would provide states with new tools to his commitment to reducing the price of control drug costs and tailor drug know what their prescription drugs will really cost before they get to the prescription drugs, and called on the coverage decisions to state needs. Administration to propose new • pharmacy or get the drug. Too many Proposing in the President’s people abandon their prescriptions at strategies and take bold actions to FY2019 Budget to authorize the HHS improve competition and end the the pharmacy when they discover the Secretary to leverage Medicare Part D gaming of regulatory processes, support price is too high, and too many patients plans’ negotiating power for certain better negotiation of drug discounts are never informed of lower cost drugs covered under Part B. through government insurance options. • Addressing price disparities in the programs, create incentives for Since the beginning of the Trump international market. The pharmaceutical companies to lower list Administration, HHS has taken a Administration is updating a number of prices, and reduce consumer out-of- number of steps to lower consumer out- historical studies to analyze drug prices pocket spending at the pharmacy and of-pocket spending and improve paid in countries that are a part of the other care settings. HHS may undertake transparency. These efforts include: Organisation for Economic Co-operation these and other actions, to the extent and Development (OECD). • Finalizing Medicare Outpatient permitted by law, in response to Prospective Payment System (OPPS) President Trump’s call to action. C. Creating Incentives to Lower List rules to reduce beneficiary out-of-pocket A. Improve Competition Prices spending for 340B drugs administered in certain hospitals by an estimated In response to President Trump’s call The list price of a drug does not to action, HHS may support improved reflect the discounts or price $320 million in 2018, which would equal $3.2 billion when multiplied over competition by: concessions paid to a PBM, insurer, • Taking steps to prevent gaming of ten years. health plan, or government program. regulatory processes: FDA will issue Obscuring these discounts can shift • Seeking information about changes guidance to address some of the ways in costs to consumers in commercial in the Medicare Prescription Drug which manufacturers may seek to use health plans and Medicare beneficiaries. Program regulations for contract year shared system REMS to delay or block Many incentives in the current system 2019 that would increase transparency competition from generic products reward higher list prices, and HHS is for people with Medicare prescription entering the market. interested in creating new incentives to drug coverage. The proposed rule • Promoting innovation and reward drug manufacturers that lower included a Request for Information competition for biologics. FDA will list prices or do not increase them. soliciting comment on potential policy issue new policies to improve the Since the beginning of the Trump approaches for applying some availability, competitiveness, and Administration, HHS has taken a manufacturer rebates and all pharmacy adoption of biosimilars as affordable number of actions to create incentives to price concessions to the price of a drug alternatives to branded biologics. FDA lower list prices. These efforts include: at the point of sale. will also continue to educate clinicians, • • Finalizing changes to the Medicare patients, and payors about biosimilar Proposing in the President’s and interchangeable products as we FY2019 budget a 5-part plan to Prescription Drug Program in the 2019 Part C and Part D regulation allowing seek to increase awareness about these modernize the Medicare Part D program, important new treatments. a portion of which includes the Medicare beneficiaries receiving low- exclusion of manufacturer discounts income subsidies to access biosimilars B. Better Negotiation at a lower cost. from the calculation of beneficiary out- In response to President Trump’s call of-pocket costs in the Medicare Part D • Proposing in the President’s to action, HHS may support better coverage gap, and the establishment of FY2019 Budget a 5-part plan to negotiation by: a beneficiary out-of-pocket maximum in modernize the Medicare Part D program, • Directing CMS to develop the Medicare Part D catastrophic phase a portion of which includes eliminating demonstration projects to test to reduce out-of-pocket spending for cost-sharing on generic drugs for low- innovative ways to encourage value- beneficiaries who spend the most on income beneficiaries and requiring based care and lower drug prices. These drugs. The changes in the catastrophic Medicare Part D plans to apply a models should hold manufacturers phase would shift more responsibility substantial portion of rebates at the accountable for outcomes, align with onto plans, creating incentives for plans point of sale. We note that the 5-part CMS’s priorities of value over volume to negotiate with manufacturers to lower plan is intended to be implemented and site-neutral payments, and provide prices for high-cost drugs. We note that together, as eliminating even one piece Medicare providers, payers, and states the 5-part plan is intended to be of the package significantly changes the with additional tools to manage implemented together, as eliminating proposal’s impacts. We also note that in spending for high-cost therapies. even one piece of the package the months following this Part D • Allowing Part D plans to adjust significantly changes the proposal’s proposed rule and the President’s formulary or benefit design during the impacts. budget proposal that included this benefit year if necessary to address a • In addition, the President’s FY2019 policy change explicitly, several major price increase for a sole source generic Budget proposes reforms to improve insurers and pharmacy benefit managers drug. Presently, Part D plans do not 340B Program integrity and ensure that announced they would pass along a contract with generic drug the benefits derived from participation portion of rebates to individual manufacturers for the purchase of in the program are used to benefit members in their fully-insured generic drugs, and generally are not patients, especially low-income and populations or when otherwise permitted to change their formulary or uninsured populations. requested by employers. benefit design without CMS approval in

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response to a price increase. This • Working in conjunction with the negotiation of drug discounts through change could ensure Part D plans can Department of Commerce the U.S. Trade government insurance programs, create respond to a price increase by the only Representative, and the U.S. Intellectual incentives for pharmaceutical manufacturer of a generic drug. Property Enforcement Coordinator to companies to lower list prices, and • Providing plans full flexibility to develop the knowledge base necessary reduce consumer out-of-pocket manage high cost drugs that do not to address the unfair disparity between spending at the pharmacy and other provide Part D plans with rebates or the drug prices in America and other care settings. HHS is also interested in negotiated fixed prices, including in the developed countries. The Trump public comments about the general protected classes. Presently, Part D Administration is committed to making structure and function of the plans are unable to negotiate lower the appropriate regulatory changes and pharmaceutical market, to inform these prices for high-cost drugs without seeking legislative solutions to put actions. Proposals described in this competition. This change could allow American patients first. section are for administrative action, Part D plans to use the tools available when within agency authority, and C. Lowering List Prices to private payers outside of the legislative proposals as necessary. Medicare program to better negotiate for In response to President Trump’s call In this Request for Information, HHS these drugs. to action, HHS may: is soliciting comments on these and • • Updating the methodology used to Call on the FDA to evaluate the other policies under active calculate Drug Plan Customer Service inclusion of list prices in direct-to- consideration. consumer advertising. star ratings for plans that are • A. Increasing competition appropriately managing utilization of Direct the Centers for Medicare & Underpricing or Cost-Shifting. Do high-cost drugs. Presently, if a Part D Medicaid Services to make Medicare and Medicaid prices more transparent, HHS programs contain the correct plan issues an adverse redetermination incentives to obtain affordable prices on decision, the enrollee, the enrollee’s hold drug makers accountable for their price increases, highlight drugs that safe and effective drugs? Does the Best representative or the enrollee’s Price reporting requirement of the prescriber may appeal the decision to have not taken price increases, and recognize when competition is working Medicaid Drug Rebate Program pose a the Independent Review Entity (IRE). barrier to price negotiation and certain This process may discourage Part D plan with an updated drug pricing dashboard. This tool will also provide value-based agreements in other sponsors from appropriately managing markets, or otherwise shift costs to other utilization of high-cost drugs. This patients, families, and caregivers with additional information to make markets? Are government programs change could provide Part D plan causing underpricing of generic drugs, sponsors with the ability to informed decisions and predict their cost sharing. and thereby reducing long-term generic appropriately manage high-cost • competition? changes, while holding sponsors Develop proposals related to the Affordable Care Act’s Maximum Rebate Affordable Care Act Taxes and accountable primarily using other Rebates. The Affordable Care Act successful enforcement mechanisms. Amount provision, which limits manufacturer rebates on brand and imposed tens of billions of dollars in • Evaluating options to allow high- generic drugs in the Medicaid program new taxes and costs on drugs sold in cost drugs to be priced or covered to 100% of the Average Manufacturer government programs through a new differently based on their indication. Price. excise tax, an increase in the Medicaid Presently, Part D plans must cover and drug rebate amounts, and an extension pay the same price for a drug regardless D. Reduce Patient Out-of-Pocket of these higher rebates to commercially- of the indication for which it was Spending run Medicaid Managed Care prescribed. This change could permit In response to President Trump’s call Organizations. How have these changes Part D plans to choose to cover or pay for action, HHS may: impacted manufacturer list pricing a different price for a drug, based on the • Prohibit Part D plan contracts from practices? Are government programs indication. preventing pharmacists from telling being cross-subsidized by higher list • Sending the President a report patients when they could pay less out- prices and excess costs paid by identifying particular drugs or classes of of-pocket by not using their insurance— individuals and employers in the drugs in Part B where there are savings also known as pharmacy gag clauses. commercial market? If cross- to be gained by moving them to Part D. • Require Part D Plan sponsors to subsidization exists, are the taxes and • Taking steps to leverage the provide additional information about artificially-depressed prices causing authority created by the Competitive drug price increases and lower-cost higher overall drug costs or other Acquisition Program (CAP) for Part B alternatives in the Explanation of negative effects? Drugs & Biologicals. This program will Benefits they currently provide their Access to Reference Product Samples generally provide physicians a choice members. between obtaining these drugs from Distribution restrictions. Certain vendors selected through a competitive III. Solicitation of Comments prescription drugs are subject to bidding process or directly purchasing Building on the ideas already limitations on distribution. Some of these drugs and being paid under the proposed, HHS is considering even these distribution limitations are current average sales price (ASP) bolder actions to bring down prices for imposed by the manufacturer, while methodology. The CAP, or a model patients and taxpayers. These include others may be imposed in connection building on CAP authority, may provide new measures to increase transparency; with an FDA-mandated Risk Evaluation opportunities for Federal savings to the fix the incentives that may be increasing and Mitigation Strategy (REMS). Some extent that aggregate bid prices are less prices for patients; and reduce the costs manufacturers may be gaming these than 106 percent of ASP, and provides of drug development. HHS is interested distribution limitations to prevent opportunities for physicians who do not in public comments about how the generic developers from accessing their wish to bear the financial burdens and Department can take action to improve drugs to conduct the tests that are risk associated with being in the competition and end the gaming of legally required for a generic drug to be business of drug acquisition. regulatory processes, support better brought to market, thereby limiting

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opportunities for competition that could manufacturers, and other stakeholders? would these exclusions affect Average place downward pressure on drug What additional information could be Sales Price (ASP) and 340B Ceiling prices. In some instances, for products added to increase the utility of the Prices? What benefits would accrue to that are subject to REMS that impact Purple Book? Medicare and Medicaid beneficiaries by distribution, manufacturers continue to Educating providers and patients. extending the time for manufacturers to restrict access to generic developers Physician and patient confidence in report restatements of AMP and/or BP even after the FDA issues a letter stating biosimilar and interchangeable products reporting, as outlined in 42 CFR that it has favorably evaluated the is critical to the increased market 447.510, to accommodate adjustments developer’s proposed safety protections acceptance of these products. FDA because of possible extended VBP for testing and would not consider the intends to build on the momentum of evaluation timeframes? Is there a provision of drug samples to this past education efforts, such as the timeframe CMS should consider that developer for generic development to launch of its Biosimilars Education and will allow manufacturers to restate AMP violate the applicable REMS. Should Outreach Campaign in 2017, by and BP without negative impact on state developing additional resources for additional steps be taken to review rebate revenue? What modifications health care professionals and patients. existing REMS to determine whether could be made to the following What types of information and distribution restrictions are appropriate? regulatory definitions in the current Are there terms that could be included educational resources on biosimilar and Medicaid Drug Rebate Program that in REMS, or provided in addition to interchangeable products would be most could facilitate the development of VBP REMS, that could expand access to useful to heath care professionals and arrangements: (1) Bundled sale; (2) free products necessary for generic patients to promote understanding of development? Are there other steps that these products? What role could state good; (3) unit; or (4) best price? Would could be taken to facilitate access to pharmacy practice acts play in providing specific AMP/BP exclusions products that are under distribution advancing the utilization of biosimilar for VBP pricing used for orphan drugs limitations imposed by the products? help manufacturers that cannot adopt a manufacturer? Interchangeability. How could the bundled sale approach? What regulatory Samples for biosimilars and interchangeability of biosimilars be changes would Medicaid Managed Care interchangeables. Like some generic improved, and what effects would it organizations find helpful in negotiating drug developers, companies engaged in have on the prescribing, dispensing, and VBP supplemental rebates with biosimilar and interchangeable product coverage of biosimilar and manufacturers? How would these development may encounter difficulties interchangeable products? changes affect Medicare or the 340B program? Are there particular sections obtaining sufficient samples of the B. Better Negotiation reference product for testing. What of the Social Security Act (e.g., the anti- actions should be considered to The American pharmaceutical kickback statute), or other statutes and facilitate access to reference product marketplace is built on innovation and regulations that can be revised to assist samples by these companies? competition. However, regulations with manufacturers’ and states’ governing how Medicare and Medicaid adoption of value-based arrangements? Biosimilar Development, Approval, pay for prescription drugs have not kept Please provide specific citations and an Education, and Access pace with the availability of new types explanation of how these changes Resources and tools from FDA: FDA of drugs, particularly higher-cost would assist states and manufacturers in prioritizes ongoing efforts to improve curative therapies intended for use by participating in VBP arrangements. the efficiency of the biosimilar and fewer patients. Drug companies, interchangeable product development commercial insurers, and states have Indication-Based Payments. and approval process. For example, proposed creative approaches to Prescription drugs have varying degrees FDA is working to identify areas in financing these new treatments, of effectiveness when used to treat which additional information resources including indication-based pricing, different types of disease. Though drugs or development tools may facilitate the outcomes-based contracts, long-term may be approved by the FDA to treat development of high quality biosimilar financing models, and others. Value- specific indications, or used off-label by and interchangeable products. What based transformation of our entire prescribers to treat others, they are specific types of information resources healthcare system is a top HHS priority. typically subject to the same price. or development tools would be most Improving price transparency is an Should Medicare or Medicaid pay the effective in reducing the development important part of achieving this aim. same price for a drug regardless of the costs for biosimilar and interchangeable What steps can be taken to improve diagnosis for which it is being used? products? price transparency in Medicare, How could indication-based pricing Improving the Purple Book. In the Medicaid, and other forms of health support value-based purchasing? What Purple Book, FDA publishes coverage, so that consumers can seek lessons could be learned from private information about biological products value when choosing and using their health plans? Are there unintended licensed under section 351 of the Public benefits? consequences of current low-cost drugs Health Service Act, including reference Value-Based Arrangements and Price increasing in price due to their products, biosimilars, and Reporting. What benefits would accrue identification as high value? How and interchangeable products. The Purple to Medicare and Medicaid beneficiaries by whom should value be determined?? Book provides information about these by allowing manufacturers to exclude Is there enough granularity in coding products that is useful to prescribers, from statutory price reporting programs and reimbursement systems to support pharmacists, patients, and other discounts, rebates, or price guarantees indication-based pricing? Are changes stakeholders. FDA is committed to the included in value-based arrangements? necessary to CMS’s price reporting timely publication of certain How would excluding these approaches program definitions or how the FDA’s information about reference product from Average Manufacturer Price (AMP) National Drug Code numbers are used in exclusivity in the Purple Book. How and Best Price (BP) calculations impact CMS price reporting programs? Do could the Purple Book be more useful to the Medicaid Drug Rebate program and physicians, pharmacists, and insurers health care professionals, patients, supplemental rebate revenue? How have access to all the information they

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need to support indication-based prescription drug coverage, or those Beneficiaries also have different cost- payments? who have Medicare supplemental sharing requirements in Part A and Part Long-term Financing Models. States benefits in Part B? What additional B. Some drugs can be administered in and other payers typically establish information would inform how this either the inpatient or outpatient setting, budgets or premium rates for a given proposal could be implemented and while others are currently limited to benefit year. As such, their budgets may operated? inpatient use because of safety concerns. be challenged when a new high-cost Part B drugs are reportedly available Do the differences between Medicare’s drug unexpectedly becomes available in to OECD nations at lower prices than Part A and Part B drug payment policies the benefit year. Long-term financing those paid by Medicare Part B create affordability and access models are being proposed to help providers. HHS is interested in challenges for beneficiaries? What states, insurers, and consumers pay for receiving data describing the differences policies should CMS consider to ensure high-cost treatments by spreading between the list prices and net prices inpatient and outpatient providers are payments over multiple years. Should paid by Medicare Part B providers, and neither underpaid nor overpaid for a the state, insurer, drug manufacturer, or the prices paid for these same drugs by drug, regardless of where it was other entity bear the risk of receiving OECD nations. Though these national administered? Which elements of the future payments? How should Medicare health systems may be demanding lower inpatient or outpatient setting lead to or Medicaid account for the cost of prices by restricting access or delaying naturally differential payments, and disease averted by a curative therapy entry, should Part B drugs sold by why? If a drug can be used safely in the paid for by another payer? What manufacturers offering lower prices to outpatient setting, and achieve the same regulations should CMS consider OECD nations be subject to negotiation outcomes at a lower cost, how should revising to allow manufacturers and by Part D plans? Would this lead to Medicare encourage the shift to states more flexibility to participate in lower out-of-pocket costs on behalf of outpatient settings? In what instances novel value-based pricing people with Medicare? How could this would inpatient administration actually arrangements? What effects would these affect access to medicines for people be less costly? solutions have on manufacturer with Medicare? Accuracy of national spending data. development decisions? What current Fixing Global Freeloading. U.S. Are annual reports of health spending barriers limit the applicability of these consumers and taxpayers generally pay obscuring the true cost of prescription arrangements in the private sector? more for brand drugs than do consumers drugs? What is the value of better What assurances would parties need to and taxpayers in other OECD countries, understanding the difference between participate in more of these which often have reimbursements set by gross and net drug prices? How could arrangements, particularly with regard their central government. In effect, other the Medicare Trustees Report, annual to public programs? countries are not paying an appropriate National Health Expenditure Part B Competitive Acquisition share of the necessary research and publications, Uniform Rate Review Program. HHS has the authority to development to bring innovative drugs Template, and other publications more operate a Competitive Acquisition to the market and are instead freeriding accurately collect and report gross and Program for Part B drugs. What changes off U.S. consumers and taxpayers. What net drug spending in medical and would vendors and providers need to can be done to reduce the pricing pharmacy benefits? Should average Part see relative to the 2007–2008 disparity and spread the burden for D rebate amounts be reported separately implementation of this program in order incentivizing new drug development for small molecule drugs, biologics, and to successfully participate in the more equally between the U.S. and high-cost drugs? What innovation is program? Has the marketplace evolved other developed countries? What needed to maximize price transparency such that there would be more vendors policies should the U.S. government without disclosing proprietary capable of successfully participating in pursue in order to protect IP rights and information or data protected by this program? Are there a sufficient address concerns around compulsory confidentiality provisions? number of providers interested in licensing in this area. having a vendor selected through a Site neutrality for physician- C. Create Incentives To Lower List Prices competitive bidding process obtain administered drugs. Currently under Government programs, commercial these drugs on their behalf, and bear the Medicare Part B and often in Medicaid, insurers, and individual consumers pay financial risk and carrying costs? How hospitals and physicians are reimbursed for drugs differently. The price paid at could this program be implemented in comparable amounts for drugs they the pharmacy counter or reimbursed to a way that ensures a competitive market administer to patients, but the facility a physician or hospital is the result of among multiple vendors? Is it necessary fees when drugs are administered at many different complex financial that the vendors also hold title to the hospitals and hospital-owned outpatient transactions between drug makers, drugs and provide a distribution departments are many times higher than distributors, insurers, pharmacy benefits channel or are there other ways they can the fees charged by physician offices. managers, pharmacies and others. provide value? What other approaches What effect would a site neutral Public programs are also subject to state could lower Part B drug spending for payment policy for drug administration and Federal regulations governing what patients of providers choosing not to procedures have on the location of the drugs are covered, who can be paid for participate, without restricting their practice of medicine? How would this them, and how much will be paid. Too access to care? change affect the organization of health often, these negotiations do not result in Part B to D. The President’s Budget care systems? How would this change the lowest out-of-pocket costs for requested the authority to move some affect competition for health care consumers, and may actually be causing Medicare Part B drugs to Medicare Part services, particularly for cancer care? higher list prices. D. Which drugs or classes of drugs Site neutrality between inpatient and Fiduciary duty for Pharmacy Benefit would be good candidates for moving outpatient setting. Medicare payment Managers. Pharmacy Benefit Managers from Part B to Part D? How could this rules pay for prescription drugs (PBMs) and benefits consultants help proposal be implemented to help reduce differently when provided during buyers (insurers, large employers) seek out-of-pocket costs for the 27% of inpatient care (Part A) or administered rebates intended to lower net drug beneficiaries who do not have Medicare by an outpatient physician (Part B). prices, and help sellers (drug

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manufacturers) pay rebates to secure formulary design, premium rates, or the cost-shifting. The Department is also placement on health plan formularies. overall structure of the Part D benefit? interested in learning more about the Most current PBM contracts may allow Incentives to lower or not increase list effect of excluding payments received them to retain a percentage of the rebate prices. Should manufacturers of drugs from, and rebates or discounts provided collected and other administrative or who have increased their prices over a to pharmacy benefit managers (PBMs) service fees. particular lookback period or have not from the determination of Average Do PBM rebates and fees based on the provided a discount be allowed to be Manufacturer Price. percentage of the list price create an included in the protected classes? What impacts would these changes incentive to favor higher list prices (and Should drugs for which a price increase have on list prices, price increases over the potential for higher rebates) rather has not been observed over a particular time, and public and private payers? than lower prices? Do higher rebates lookback period be treated differently What data would support or refute the encourage benefits consultants who when determining the exceptions premise described above? represent payers to focus on high criteria for protected class drugs? What Copay discount cards. Does the use of rebates instead of low net cost? Do should CMS consider doing, under manufacturer copay cards help lower payers manage formularies favoring current authorities, to create incentives consumer cost or actually drive benefit designs that yield higher rebates for Part D drug manufacturers increases in manufacturer list price? rather than lower net drug costs? How committing to a price over a particular Does the use of copay cards incent are beneficiaries negatively impacted by lookback period? How long should the manufacturers and PBMs to work incentives across the benefits landscape lookback period be? together in driving up list prices by (manufacturer, wholesaler, retailer, The Healthcare Common Procedure limiting the transparency of the true PBM, consultants and insurers) that Coding System (HCPCS) codes for new cost of the drug to the beneficiary? What favor higher list prices? How can these Part B drugs are not typically assigned data would support or refute the incentives be reset to prioritize lower until after they are commercially premise described above? CMS regulations presently exclude out of pocket costs for consumers, better available. Should they be available immediately at launch for new drugs manufacturer sponsored drug discount adherence and improved outcomes for from manufacturers committing to a card programs from the determination of patients? What data would support or price over a particular lookback period? average manufacturer price and the refute the premise described above? What should CMS consider doing, determination of best price. What effect Should PBMs be obligated to act under current authorities, to create would eliminating this exclusion have solely in the interest of the entity for incentives for Part B drugs committing on drug prices? whom they are managing to a price over a particular lookback Would there be circumstances under pharmaceutical benefits? Should PBMs period? How long should the lookback which allowing beneficiaries of Federal be forbidden from receiving any period be? health care programs to utilize copay payment or remuneration from How could these incentives affect the discount cards would advance public manufacturers, and should PBM behavior of manufacturers and health benefits such as medication contracts be forbidden from including purchasers? What are the operational adherence, and outweigh the effects on rebates or fees calculated as a concerns to implementing them? Are list price and concerns about program percentage of list prices? What effect there other incentives that could be integrity? What data would support or would imposing this fiduciary duty on created to reward manufacturers of refute this? PBMs on behalf of the ultimate payer drugs that have not taken a price (i.e., consumers) have on PBMs’ ability increase during a particular lookback The 340B Drug Discount Program to negotiate drug prices? How could this period? The 340B Drug Pricing Program was affect manufacturer pricing behavior, Inflationary rebate limits. The established by Congress in 1992, and insurance, and benefit design? What Department is concerned that limiting requires drug manufacturers unintended consequences for manufacturer rebates on brand and participating in the Medicaid Drug beneficiary out-of-pocket spending and generic drugs in the Medicaid program Rebate Program to provide covered Federal health program spending could to 100% of calculated AMP allows for outpatient drugs to eligible health care result from these changes? excessive price increases to be taken providers—also known as covered Reducing the impact of rebates. without manufacturers facing the full entities—at reduced prices. Covered Increasingly higher rebates in Federal effect of the price inflationary penalty entities include certain qualifying health care programs may be causing established by Congress. This policy, hospitals and Federal grantees higher list prices in public programs, implemented as part of the ACA, may identified in section 340B of the Public and increasing the prices paid by allow for runaway price increases and Health Service Act (PHSA). The Health consumers, employers, and commercial cost-shifting. When is this limitation a Resources and Services Administration insurers. What should CMS consider valid constraint upon the rebates (HRSA) administers and oversees the doing to restrict or reduce the use of manufacturers should pay? What 340B program, and the discounts rebates? Should Medicare Part D impacts would removing the cap on the provided may affect the prices paid for prohibit the use of rebates in contracts inflationary rebate have on list prices, drugs used by Medicare beneficiaries, between Part D plan sponsors and drug price increases over time, and public people with Medicaid, and those manufacturers, and require these and private payers? covered by commercial insurance. contracts to be based only on a fixed Exclusion of certain payments, Program Growth. The 340B program price for a drug over the contract term? rebates, or discounts from the has grown significantly since 1992—not What incentives or regulatory changes determination of Average Manufacturer only in the number of covered entities (e.g., removing the discount safe harbor) Price and Best Price. The Department is and contract pharmacies, but also in the could restrict the use of rebates and concerned that excluding pharmacy amount of money saved by covered reduce the effect of rebates on list benefit manager rebates from the entities. HRSA estimates that covered prices? How would this affect the determination of Best Price, entities saved approximately $6 billion behavior of drug manufacturers, PBMs, implemented as part of the ACA, may on approximately $12 billion in and insurers? How could it change allow for runaway price increases and discounted purchases in Calendar Year

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(CY) 2015 by participating in the 340B discounts in Medicaid and other dispensing systems? Should Medicare program.2 It is estimated that programs? require the use of systems that support discounted drug purchases made by providing this information to patients? D. Reduce Patient Out-of-Pocket covered entities under the 340B What existing systems, tools, or third- Spending program totaled more than $16 billion party applications could support the in 2016—a more than 30 percent Part D end-of-year statement on drug creation of these tools? Does the increase in 340B program purchases in price changes and rebates collected. technology exist for this approach to be just one year.3 How has the growth of Part D plans presently provide their quickly and inexpensively the 340B drug discount program members with an explanation of implemented? Would this increase costs affected list prices? Has it caused cross- benefits, which includes information for the Medicare program? Does this subsidization by increasing list prices about the negotiated price for each of create unreasonable burden for applicable in the commercial sector? their dispensed prescriptions, and what prescribers or pharmacists? the plan, member, and others paid. What impact has this had on insurers E. Additional Feedback and payers, including Part D plans? What additional information could be Does the Group Purchasing added about the rate of change in those We are interested in all suggestions to Organization (GPO) exclusion, the prices over the course of the benefit improve the affordability and establishment of the Prime Vendor year? Alternatively, could pharmacists accessibility of prescription drugs, Program, and the current inventory could be empowered to inform including reflections and answers to models for tracking 340B drugs increase beneficiaries when prices for their drugs questions not specifically asked above. or decrease prices? What are the have changed? Would this information Whenever possible, respondents are unintended consequences of this be best distributed by pharmacists at the asked to draw their responses from program? Would explicit general point of sale, by Medicare as an annual objective, empirical, and actionable regulatory authority over all elements of report, or by the health plan on a more evidence and to cite this evidence the 340B Program materially affect the regular basis, or some combination of within their responses. What other regulations or government elements of the program affecting drug these approaches? Could CMS improve policies may be increasing list prices, pricing? transparency for Medicare beneficiaries without violating the Part D program’s net prices, and out-of-pocket drug Program Eligibility. Would changing confidentiality protections? What spending? What other policies or the definition of ‘‘patient’’ or changing operational challenges or concerns legislative proposals should HHS the requirements governing covered about burden exist with this approach, consider to lower drug prices while entities contracting with pharmacies or and how could CMS measure encouraging innovation? What data or registering off-site outpatient facilities compliance with this approach? evidence should HHS consider when (i.e., child sites) help refocus the Federal preemption of contracted developing proposals to lower drug program towards its intended purpose? pharmacy gag clause laws. Right now, prices? Duplicate Discounts. The 340B statute some contracts between health plans HHS is actively working to reduce prohibits duplicate discounts. and pharmacies do not allow the regulatory burdens. To what extent do Manufacturers are not required to pharmacy to inform a patient that the current regulations or government provide a discounted 340B price and a same drug or a competitor could be policies related to prescription drug Medicaid drug rebate for the same drug. purchased at a lower price off- pricing impose burden on providers, Are the current mechanisms for insurance. What purpose do these payers, or others? To what extent do the identifying and preventing duplicate clauses serve other than to require planned actions described in this discounts effective? Are drug companies beneficiaries pay higher out-of-pocket document impose burden, and do these paying additional rebates over the costs? What other communication burdens outweigh the benefits? statutory 340B discounts for drugs that barriers are in place between This is a request for information only. have been dispensed to 340B patients pharmacists and patients that could be Respondents are encouraged to provide covered by commercial insurance? What impeding lower drug prices, out-of- complete but concise responses to the is the impact on drug pricing given that pocket costs, and spending? Should questions outlined above. We note that private insurers oftentimes pay pharmacists be required to ask patients a response to every question is not commercial rates for drugs purchased at in Federal programs if they’d like required. This request for information is 340B discounts? Do insurers, pharmacy, information about lower-cost issued solely for information and PBM, or manufacturer contracts alternatives? What other strategies might planning purposes; it does not consider, address, or otherwise include be most effective in providing price constitute a notice of proposed language regarding drugs purchased at information to consumers at the point of rulemaking or request for proposals, 340B discounts? What should be sale? applications, proposal abstracts, or considered to improve the management Inform Medicare beneficiaries with quotations. This request for information and the integrity of claims for drugs Medicare Part B and Part D about cost- does not commit the United States provided to 340B patients in the overall sharing and lower-cost alternatives. Government (‘‘Government’’) to contract insured market? What additional Health plans and pharmacy benefit for any supplies or services or make a oversight or claims standards are managers have found new ways to grant award. Further, HHS is not necessary to prevent duplicate inform prescribers and pharmacists, seeking proposals through this request when prescribing or dispensing a new for information and will not accept prescription, about the formulary unsolicited proposals. Respondents are 2 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation, options, expected cost-sharing, and advised that the Government will not 82 FR 1210, 1227 (Jan. 5, 2017). lower-cost alternatives specific to pay for any information or 3 Aaron Vandervelde and Eleanor Blalock, individual patients. How could these administrative costs incurred in Measuring the Relative Size of the 340B Program: tools reduce out-of-pocket spending for response to this request for information; 2012–2017, BERKELEY RESEARCH GROUP (July all costs associated with responding to 2017), available at https://www.thinkbrg.✖ people with Medicare? Is this Vandervelde_Measuring340Bsize-July-2017_WEB_ technology present in all or most this request for information will be FINAL.pdf. electronic prescribing or pharmacy solely at the interested party’s expense.

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Not responding to this request for authority of the Paperwork Reduction DEPARTMENT OF HEALTH AND information does not preclude Act of 1995 (44 U.S.C. 3501 et seq.). HUMAN SERVICES participation in any future rulemaking Dated: May 11, 2018. or procurement, if conducted. It is the National Institutes of Health responsibility of the potential Alex M. Azar II, responders to monitor this request for Secretary, Department of Health and Human Center for Scientific Review; Amended information announcement for Services. Notice of Meeting additional information pertaining to this [FR Doc. 2018–10435 Filed 5–14–18; 11:15 am] Notice is hereby given of a change in request. We also note that HHS may not BILLING CODE 4150–03–P the meeting of the Center for Scientific respond to questions about the policy Review Special Emphasis Panel, May issues raised in this request for 22, 2018, 10:00 a.m. to May 22, 2018, information. HHS may or may not DEPARTMENT OF HEALTH AND 5:00 p.m., National Institutes of Health, choose to contact individual responders. HUMAN SERVICES 6701 Rockledge Drive, Bethesda, MD Such communications would only serve 20892 which was published in the National Institutes of Health to further clarify written responses. Federal Register on May 9, 2018, 83 FR Contractor support personnel may be National Heart, Lung, and Blood 21301. used to review request for information The meeting will be held on June 13, Institute; Notice of Closed Meeting responses. Responses to this notice are 2018 at 11:00 a.m. The meeting location not offers and cannot be accepted by the remains the same. The meeting is closed Pursuant to section 10(d) of the Government to form a binding contract to the public. Federal Advisory Committee Act, as or issue a grant. Information obtained as Dated: May 10, 2018. a result of this request for information amended, notice is hereby given of the David D. Clary, may be used by the Government for following meeting of the NHLBI program planning on a non-attribution Mentored Transition to Independence Program Analyst, Office of Federal Advisory Committee Policy. basis. Respondents should not include Review Committee. any information that might be The meeting will be closed to the [FR Doc. 2018–10470 Filed 5–15–18; 8:45 am] considered proprietary or confidential. public in accordance with the BILLING CODE 4140–01–P This request for information should not provisions set forth in sections be construed as a commitment or 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., DEPARTMENT OF HEALTH AND authorization to incur cost for which as amended. The grant applications and HUMAN SERVICES reimbursement would be required or the discussions could disclose sought. All submissions become confidential trade secrets or commercial National Institutes of Health Government property and will not be property such as patentable material, returned. HHS may publicly post the and personal information concerning National Institute of Biomedical comments received, or a summary individuals associated with the grant Imaging and Bioengineering; Notice of thereof. While responses to this request applications, the disclosure of which Closed Meeting for information do not bind HHS to any would constitute a clearly unwarranted Pursuant to section 10(d) of the further actions related to the response, invasion of personal privacy. Federal Advisory Committee Act, as all submissions will be made publicly Name of Committee: Heart, Lung, and amended, notice is hereby given of the available on http://www.regulations.gov. Blood Initial Review Group; NHLBI meeting of the National Institute of IV. Collection of Information Mentored Transition to Independence Biomedical Imaging and Bioengineering Requirements Review Committee. Special Emphasis Panel. Date: June 7–8, 2018. The meeting will be closed to the This document does not impose Time: 8:00 a.m. to 1:00 p.m. public in accordance with the information collection requirements, Agenda: To review and evaluate grant provisions set forth in sections that is, reporting, recordkeeping or applications. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., third-party disclosure requirements. Place: The William F. Bolger Center, 9600 as amended. The grant applications and This request for information constitutes Newbridge Drive, Potomac, MD 20854. the discussions could disclose a general solicitation of comments. In Contact Person: Giuseppe Pintucci, Ph.D., confidential trade secrets or commercial accordance with the implementing Scientific Review Officer, Office of Scientific property such as patentable material, regulations of the Paperwork Reduction Review/DERA National Heart, Lung, and and personal information concerning Act (PRA) at 5 CFR 1320.3(h)(4), Blood Institute, 6701 Rockledge Drive, Room individuals associated with the grant information subject to the PRA does not 7192, Bethesda, MD 20892, 301–435–0287, applications, the disclosure of which generally include ‘‘facts or opinions [email protected]. would constitute a clearly unwarranted submitted in response to general (Catalogue of Federal Domestic Assistance invasion of personal privacy. solicitations of comments from the Program Nos. 93.233, National Center for Name of Committee: National Institute of public, published in the Federal Sleep Disorders Research; 93.837, Heart and Biomedical Imaging and Bioengineering Register or other publications, Vascular Diseases Research; 93.838, Lung Special Emphasis Panel; P41 BTRC regardless of the form or format thereof, Diseases Research; 93.839, Blood Diseases Application Review (2018/10). provided that no person is required to and Resources Research, National Institutes Date: June 19–21, 2018. supply specific information pertaining of Health, HHS) Time: 6:00 p.m. to 12:30 p.m. to the commenter, other than that Agenda: To review and evaluate grant Dated: May 10, 2018. necessary for self-identification, as a applications. condition of the agency’s full Michelle D. Trout, Place: Wild Palms Hotel, 910 East Fremont Avenue, Sunnyvale, CA 94087. consideration of the comment.’’ Program Analyst, Office of Federal Advisory Committee Policy. Contact Person: John P. Holden, Ph.D., Consequently, this document need not Scientific Review Officer, National Institute be reviewed by the Office of [FR Doc. 2018–10472 Filed 5–15–18; 8:45 am] of Biomedical Imaging and Bioengineering, Management and Budget under the BILLING CODE 4140–01–P National Institutes of Health, 6707

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Democracy Blvd., Suite 920, Bethesda, MD Health, 6701 Democracy Blvd, Democracy 1, should be made to Director, Information 20892, (301) 496–8775, [email protected]. Room 1080, Bethesda, MD 20892–4874 Management Division, 500 C Street SW, Dated: May 10, 2018. [email protected]. Washington, DC 20472, email address David D. Clary, (Catalogue of Federal Domestic Assistance FEMA-Information-Collections- Program Nos. 93.859, Pharmacology, Program Analyst, Office of Federal Advisory [email protected] or Physiology, and Biological Chemistry Jacqueline Snelling, Senior Advisor, Committee Policy. Research; 93.350, B—Cooperative [FR Doc. 2018–10473 Filed 5–15–18; 8:45 am] Agreements; 93.859, Biomedical Research U.S. Department of Homeland Security/ BILLING CODE 4140–01–P and Research Training, National Institutes of FEMA/National Preparedness Health, HHS) Directorate, Individual and Community Preparedness Division, Washington, DC Dated: May 10, 2018. DEPARTMENT OF HEALTH AND 20472–3630, jacqueline.snelling@ David D. Clary, HUMAN SERVICES fema.dhs.gov. Program Analyst, Office of Federal Advisory SUPPLEMENTARY INFORMATION: This National Institutes of Health Committee Policy. [FR Doc. 2018–10471 Filed 5–15–18; 8:45 am] proposed information collection previously published in the Federal National Center for Advancing BILLING CODE 4140–01–P Translational Sciences; Notice of Register on February 14, 2018 at 83 FR Closed Meetings 6611 with a 60 day public comment period. FEMA received 14 anonymous Pursuant to section 10(d) of the DEPARTMENT OF HOMELAND public comments that were not relevant Federal Advisory Committee Act, as SECURITY to the information collection. FEMA amended, notice is hereby given of the Federal Emergency Management noticed a mistake in the number of following meetings. Agency respondents that results in a change The meetings will be closed to the from what was published on February public in accordance with the [Docket ID: FEMA–2018–0011; OMB No. 14, 2018, at 83 FR 6611. The number of provisions set forth in sections 1660—NEW] respondents has changed from 3,120 to 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., 6,120. FEMA also noted a mistake in the Agency Information Collection as amended. The grant applications and total annual respondent cost from Activities: Submission for OMB the discussions could disclose $19,240.00 to $26,299.60. The purpose Review; Comment Request; Post confidential trade secrets or commercial of this notice is to notify the public that Disaster Survivor Preparedness property such as patentable material, FEMA will submit the information Research and personal information concerning collection abstracted below to the Office individuals associated with the grant AGENCY: Federal Emergency of Management and Budget for review applications, the disclosure of which Management Agency, DHS. and clearance. would constitute a clearly unwarranted ACTION: Notice and request for invasion of personal privacy. Collection of Information comments. Name of Committee: National Center for Title: Post Disaster Survivor Advancing Translational Sciences Special SUMMARY: The Federal Emergency Preparedness Research. Emphasis Panel; CTSA Collaborative Management Agency (FEMA) will Type of Information Collection: New Innovation Award Review. submit the information collection information collection. Date: June 20–21, 2018. abstracted below to the Office of OMB Number: 1660—NEW. Form Titles and Numbers: FEMA Time: 8:00 a.m. to 5:00 p.m. Management and Budget for review and Agenda: To review and evaluate grant Form 519–0–54, Post Disaster Survivor clearance in accordance with the applications. Preparedness Research. Place: National Institutes of Health, One requirements of the Paperwork Abstract: Through improved Democracy Plaza, Room 1068, 6701 Reduction Act of 1995. The submission understanding of the relationship Democracy Boulevard, Bethesda, MD 20892 will describe the nature of the between an individual’s preparedness (Virtual Meeting). information collection, the categories of knowledge, actions, and perception and Contact Person: M. Lourdes Ponce, Ph.D., respondents, the estimated burden (i.e., self-efficacy, FEMA will be able to draw Scientific Review Officer, Office of Scientific the time, effort and resources used by Review, National Center for Advancing some conclusions as to how these respondents to respond) and cost, and factors contribute to and/or hinder life- Translational Sciences (NCATS), National the actual data collection instruments Institutes of Health, 6701 Democracy Blvd, saving responses and short and long- Democracy 1, Room 1073 Bethesda, MD FEMA will use. term recovery, with a focus on 20892, 301–435–0810, lourdes.ponce@ DATES: Comments must be submitted on historically underserved communities. nih.gov. or before June 15, 2018. Affected Public: Individuals or Name of Committee: National Center for ADDRESSES: Submit written comments households. Advancing Translational Sciences Special on the proposed information collection Estimated Number of Respondents: Emphasis Panel; Platform Delivery to the Office of Information and 6,120. Technologies for Nucleic Acid Therapeutics. Regulatory Affairs, Office of Estimated Number of Responses: Date: June 26–27, 2018. Management and Budget. Comments 6,120. Time: 8:00 a.m. to 5:00 p.m. Estimated Total Annual Burden Agenda: To review and evaluate grant should be addressed to the Desk Officer for the Department of Homeland Hours: 740. applications. Estimated Total Annual Respondent Place: National Institutes of Health, One Security, Federal Emergency Democracy Plaza, Room 1080, 6701 Management Agency, and sent via Cost: $26,299.60 Estimated Respondents’ Operation Democracy Boulevard, Bethesda, MD 20892 electronic mail to dhsdeskofficer@ and Maintenance Costs: $0. (Virtual Meeting). omb.eop.gov. Contact Person: Jing Chen, Ph.D., Scientific Estimated Respondents’ Capital and Review Officer, Office of Scientific Review, FOR FURTHER INFORMATION CONTACT: Start-Up Costs: $0. National Center for Advancing Translational Requests for additional information or Estimated Total Annual Cost to the Sciences (NCATS), National Institutes of copies of the information collection Federal Government: $186,573.45.

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Comments Committee (FGDC), U.S. Geological Survey, 12201 Sunrise Valley Drive, Comments may be submitted as Survey (USGS), 909 First Avenue, Suite MS–590, Reston, VA 20192; by email at indicated in the ADDRESSES caption 800, Seattle, WA 98104; by email at [email protected]; or by telephone at above. Comments are solicited to (a) [email protected]; or by telephone at 703–648–4142, at least five (5) business evaluate whether the proposed data (206) 220–4621. days prior to the meeting. Any written collection is necessary for the proper SUPPLEMENTARY INFORMATION: This comments received will be provided to performance of the agency, including meeting is being held under the the committee members. whether the information shall have provisions of the Federal Advisory Before including your address, phone practical utility; (b) evaluate the Committee Act of 1972 (5 U.S.C., number, email address, or other accuracy of the agency’s estimate of the Appendix, as amended), the personal identifying information in your burden of the proposed collection of Government in the Sunshine Act of comment, you should be aware that information, including the validity of 1976 (5 U.S.C. 552B, as amended), and your entire comment—including your the methodology and assumptions used; 41 CFR 102–3.140 and 102–3.150. personal identifying information—may (c) enhance the quality, utility, and Purpose of the Meeting: The National be made publicly available at any time. clarity of the information to be Geospatial Advisory Committee (NGAC) While you may ask us in your comment collected; and (d) minimize the burden provides advice and recommendations to withhold your personal identifying of the collection of information on those related to management of Federal and information from public review, we who are to respond, including through national geospatial programs, the cannot guarantee that we will be able to the use of appropriate automated, development of the National Spatial do so. electronic, mechanical, or other Data Infrastructure, and the Kenneth Shaffer, implementation of Office of technological collection techniques or Deputy Executive Director, Federal other forms of information technology, Management and Budget Circular A–16. Geographic Data Committee. The NGAC reviews and comments on e.g., permitting electronic submission of [FR Doc. 2018–10419 Filed 5–15–18; 8:45 am] responses. geospatial policy and management BILLING CODE 4338–11–P Dated: May 10, 2018. issues and provides a forum to convey Rachel Frier, views representative of non-federal stakeholders in the geospatial Records Management Branch Chief, Office DEPARTMENT OF THE INTERIOR of the Chief Administrative Officer, Mission community. The NGAC meeting is one Support, Federal Emergency Management of the primary ways that the FGDC Office of the Secretary Agency, Department of Homeland Security. collaborates with its broad network of partners. Additional information about [189D0102DM DS61100000 [FR Doc. 2018–10393 Filed 5–15–18; 8:45 am] DLSN00000.000000 DX61101]; [OMB Control the NGAC meeting is available at: BILLING CODE 9111–46–P Number 1094–0001] www.fgdc.gov/ngac. Agenda Topics: Agency Information Collection DEPARTMENT OF THE INTERIOR —FGDC Update Activities; ‘‘7 CFR Part 1; 43 CFR Part —Geospatial Data as Services 45; 50 CFR Part 221; The Alternatives Geological Survey —Cultural and Historical Geospatial Process in Hydropower Licensing’’ Resources [GX18EE000101100] —Geospatial Platform AGENCY: Office of the Secretary, Office of Environmental Policy and Public Meeting of the National —NSDI Strategic Plan Framework —Landsat Advisory Group Compliance, Interior. Geospatial Advisory Committee Meeting Accessibility/Special ACTION: Notice of Information AGENCY: U.S. Geological Survey, Accommodations: The meeting is open Collection; request for comment. Interior. to the public from 8:30 a.m. to 5:00 p.m. SUMMARY: In accordance with the ACTION: Notice of public meeting. on June 26 and from 8:30 a.m. to 4:00 Paperwork Reduction Act of 1995, we, p.m. on June 27. Members of the public the Office of the Secretary, Office of SUMMARY: In accordance with the wishing to attend the meeting should Environmental Policy and Compliance Federal Advisory Committee Act of contact Ms. Lucia Foulkes by email at are proposing to renew an information 1972, the U.S. Geological Survey [email protected] to register no later collection. (USGS) is publishing this notice to than five (5) business days prior to the announce that a Federal Advisory meeting. Seating may be limited due to DATES: Interested persons are invited to Committee meeting of the National room capacity. Individuals requiring submit comments on or before July 16, Geospatial Advisory Committee (NGAC) special accommodations to access the 2018. will take place. public meeting should contact Ms. ADDRESSES: Send your written DATES: The meeting will be held on Lucia Foulkes at the email stated above comments on this information Tuesday, June 26, 2018 from 8:30 a.m. or by telephone at 703–648–4142 at collection request (ICR) to Shawn Alam, to 5 p.m., and on Wednesday, June 27, least five (5) business days prior to the Office of Environmental Policy and 2018 from 8:30 a.m. to 4 p.m. (Eastern meeting so that appropriate Compliance, U.S. Department of the Standard Time). arrangements can be made. Interior, 1849 C Street NW, MS 5538– ADDRESSES: The meeting will be held at Public Disclosure of Comments: Time MIB, Washington, DC 20240, fax 202– the Department of the Interior building, will be allowed at the meeting for any 208–6970 or email to shawn_alam@ 1849 C Street NW, Washington, DC individual or organization wishing to ios.doi.gov. Please reference OMB 20240 in the South Penthouse make formal oral comments. To allow Control Number 1094–0001 in the Conference Room. Send your comments for full consideration of information by subject line of your comments. to the Group Federal Officer by email to the committee members at the meeting, FOR FURTHER INFORMATION CONTACT: To [email protected]. written comments must be provided to request additional information about FOR FURTHER INFORMATION CONTACT: Mr. Ms. Lucia Foulkes, Federal Geographic this ICR, any explanatory information John Mahoney, Federal Geographic Data Data Committee (FGDC), U.S. Geological and related forms, please use the contact

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information in the ADDRESSES section rule to the interim rule originally published by the Office of above. published in November 2005 at 7 CFR Environmental Policy and Compliance, SUPPLEMENTARY INFORMATION: In part 1, 43 CFR part 45, and 50 CFR part Department of the Interior, on behalf of accordance with the Paperwork 221, to implement section 241 of the all three Departments, and the data Reduction Act of 1995, we provide the Energy Policy Act of 2005 (EP Act), provided below covers anticipated general public and other Federal Public Law 109–58, enacted on August responses (alternative conditions/ agencies with an opportunity to 8, 2005. Section 241 of the EP Act added prescriptions and associated comment on new, proposed, revised, a new section 33 to the Federal Power information) for all three Departments. and continuing collections of Act (FPA), 16 U.S.C. 823d, that allowed Title of Collection: 7 CFR part 1; 43 the license applicant or any other party information. This helps us assess the CFR part 45; 50 CFR part 221; The to the license proceeding to propose an impact of our information collection Alternatives Process in Hydropower alternative to a condition or prescription requirements and minimize the public’s Licensing that one or more of the Departments reporting burden. It also helps the OMB Control Number: 1094–0001. develop for inclusion in a hydropower public understand our information Form Number: None. license issued by the Federal Energy collection requirements and provide the Type of Review: Extension of a Regulatory Commission (FERC) under requested data in the desired format. currently approved collection. the FPA. This provision required that We are soliciting comments on the Respondents/Affected Public: the Department of Agriculture, the proposed ICR that is described below. Business or for-profit entities. Department of the Interior, and the We are especially interested in public Total Estimated Number of Annual Department of Commerce collect the comment addressing the following Respondents: 5. information covered by 1094–0001. Total Estimated Number of Annual issues: (1) Is the collection necessary to Under FPA section 33, the Secretary Responses: 5. the proper functions of the Office of the of the Department involved must accept Estimated Completion Time per Secretary, Office of Environmental the proposed alternative if the Secretary Response: 500 hours. Policy and Compliance Departments; (2) determines, based on substantial Total Estimated Number of Annual will this information be processed and evidence provided by a party to the Burden Hours: 2,500 hours. used in a timely manner; (3) is the license proceeding or otherwise Respondent’s Obligation: Voluntary. estimate of burden accurate; (4) how available to the Secretary, (a) that the Frequency of Collection: Once per might the Office of the Secretary, Office alternative condition provides for the alternative proposed. of Environmental Policy and adequate protection and utilization of Total Estimated Annual Nonhour Compliance Departments enhance the the reservation, or that the alternative Burden Cost: There are no nonhour quality, utility, and clarity of the prescription will be no less protective burden costs. information to be collected; and (5) how than the fishway initially proposed by An agency may not conduct or might the Office of the Secretary, Office the Secretary, and (b) that the sponsor, and a person is not required to of Environmental Policy and alternative will either cost significantly respond to, a collection of information Compliance Departments minimize the less to implement or result in improved unless it displays a currently valid OMB burden of this collection on the operation of the project works for control number. respondents, including through the use electricity production. The authority for this action is the of information technology. In order to make this determination, Paperwork Reduction Act of 1995 (44 Comments that you submit in the regulations require that all of the U.S.C. 3501 et seq). response to this notice are a matter of following information be collected: (1) public record. We will include or A description of the alternative, in an Michaela E. Noble, summarize each comment in our request equivalent level of detail to the Director. to OMB to approve this ICR. Before Department’s preliminary condition or [FR Doc. 2018–10370 Filed 5–15–18; 8:45 am] including your address, phone number, prescription; (2) an explanation of how BILLING CODE 4334–63–P email address, or other personal the alternative: (i) If a condition, will identifying information in your provide for the adequate protection and comment, you should be aware that utilization of the reservation; or (ii) if a DEPARTMENT OF THE INTERIOR your entire comment—including your prescription, will be no less protective personal identifying information—may than the fishway prescribed by the National Park Service be made publicly available at any time. bureau; (3) an explanation of how the [NPS–WASO–NRNHL–DTS#–25514; While you can ask us in your comment alternative, as compared to the PPWOCRADI0, PCU00RP14.R50000] to withhold your personal identifying preliminary condition or prescription, information from public review, we will: (i) Cost significantly less to National Register of Historic Places; cannot guarantee that we will be able to implement; or (ii) result in improved Notification of Pending Nominations do so. operation of the project works for and Related Actions Abstract: The OMB regulations at 5 electricity production; (4) an CFR part 1320, which implement the explanation of how the alternative or AGENCY: National Park Service, Interior. Paperwork Reduction Act of 1995, 44 revised alternative will affect: (i) Energy ACTION: Notice. U.S.C. 3501 et seq., require that supply, distribution, cost, and use; (ii) SUMMARY: The National Park Service is interested members of the public and flood control; (iii) navigation; (iv) water soliciting comments on the significance affected agencies have an opportunity to supply; (v) air quality; and (vi) other of properties nominated before April 28, comment on information collection and aspects of environmental quality; and 2018, for listing or related actions in the recordkeeping activities (see 5 CFR (5) specific citations to any scientific National Register of Historic Places. 1320.8 (d)). studies, literature, and other On November 23, 2016, the documented information relied on to DATES: Comments should be submitted Departments of Agriculture, the Interior, support the proposal. by May 31, 2018. and Commerce published a final rule on This notice of proposed renewal of an ADDRESSES: Comments may be sent via the March 31, 2015 revised interim final existing information collection is being U.S. Postal Service and all other carriers

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to the National Register of Historic ILLINOIS of project water for authorized uses in Places, National Park Service, 1849 C St. Cook County newspapers of general circulation in the NW, MS 7228, Washington, DC 20240. affected area at least 60 days prior to Emmanuel Episcopal Church, 203 S. SUPPLEMENTARY INFORMATION: The Kensington Ave., LaGrange, AD100001922 contract execution. Announcements properties listed in this notice are being may be in the form of news releases, considered for listing or related actions Authority: Section 60.13 of 36 CFR part 60. legal notices, official letters, in the National Register of Historic Dated: April 30, 2018. memorandums, or other forms of Places. Nominations for their Julie H. Ernstein, written material. Meetings, workshops, consideration were received by the Acting Chief, National Register of Historic and/or hearings may also be used, as National Park Service before April 28, Places/National Historic Landmarks Program. appropriate, to provide local publicity. 2018. Pursuant to Section 60.13 of 36 [FR Doc. 2018–10371 Filed 5–15–18; 8:45 am] The public participation procedures do CFR part 60, written comments are BILLING CODE 4312–52–P not apply to proposed contracts for the being accepted concerning the sale of surplus or interim irrigation significance of the nominated properties water for a term of 1 year or less. Either under the National Register criteria for DEPARTMENT OF THE INTERIOR of the contracting parties may invite the evaluation. public to observe contract proceedings. Before including your address, phone Bureau of Reclamation All public participation procedures will number, email address, or other [RR83550000, 189R5065C6, be coordinated with those involved in personal identifying information in your RX.59389832.1009676] complying with the National comment, you should be aware that Environmental Policy Act. Pursuant to your entire comment—including your Quarterly Status Report of Water the ‘‘Final Revised Public Participation personal identifying information—may Service, Repayment, and Other Water- Procedures’’ for water resource-related be made publicly available at any time. Related Contract Actions contract negotiations, published in 47 While you can ask us in your comment FR 7763, February 22, 1982, a tabulation to withhold your personal identifying AGENCY: Bureau of Reclamation, is provided of all proposed contractual information from public review, we Interior. actions in each of the five Reclamation cannot guarantee that we will be able to ACTION: Notice of contract actions. regions. When contract negotiations are do so. completed, and prior to execution, each Nominations submitted by State SUMMARY: Notice is hereby given of proposed contract form must be Historic Preservation Officers: contractual actions that have been approved by the Secretary of the proposed to the Bureau of Reclamation Interior, or pursuant to delegated or ARKANSAS (Reclamation) and are new, redelegated authority, the Commissioner discontinued, or completed since the Carroll County of Reclamation or one of the regional last publication of this notice. This Eureka Springs Cemetery, NW of jct. of Cty. directors. In some instances, notice is one of a variety of means used congressional review and approval of a Rd. 205 & US 62 E, Eureka Springs vicinity, to inform the public about proposed SG100002535 report, water rate, or other terms and contractual actions for capital recovery conditions of the contract may be IOWA and management of project resources involved. Cerro Gordo County and facilities consistent with section 9(f) Public participation in and receipt of of the Reclamation Project Act of 1939. Elmwood—St. Joseph Municipal Cemetery comments on contract proposals will be Historic District, 1224 S Washington Ave., Additional announcements of facilitated by adherence to the following Mason City, SG100002541 individual contract actions may be procedures: published in the Federal Register and in 1. Only persons authorized to act on MASSACHUSETTS newspapers of general circulation in the behalf of the contracting entities may Plymouth County areas determined by Reclamation to be negotiate the terms and conditions of a affected by the proposed action. Emerson Shoe Company, 51 Maple St., specific contract proposal. Rockland, SG100002542 ADDRESSES: The identity of the 2. Advance notice of meetings or OKLAHOMA approving officer and other information hearings will be furnished to those pertaining to a specific contract parties that have made a timely written Jackson County proposal may be obtained by calling or Downtown Altus Historic District, Broadway, request for such notice to the writing the appropriate regional office at appropriate regional or project office of Main, Hudson & Commerce Sts., Altus, the address and telephone number given SG100002543 Reclamation. for each region in the SUPPLEMENTARY 3. Written correspondence regarding Muskogee County INFORMATION section of this notice. proposed contracts may be made Thomas, Reverend L.W., Homestead, 5805 FOR FURTHER INFORMATION CONTACT: available to the general public pursuant Oktaha Rd., Summit vicinity, Michelle Kelly, Reclamation Law to the terms and procedures of the SG100002544 Administration Division, Bureau of Freedom of Information Act, as Oklahoma County Reclamation, P.O. Box 25007, Denver, amended. Pioneer Telephone Company Warehouse and Colorado 80225–0007; telephone 303– 4. Written comments on a proposed Garage, 1–13 NE 6th St., Oklahoma City, 445–2888. contract or contract action must be SG100002545 SUPPLEMENTARY INFORMATION: Consistent submitted to the appropriate regional Tulsa County with section 9(f) of the Reclamation officials at the locations and within the Cheairs Furniture Company Building, 537 S Project Act of 1939, and the rules and time limits set forth in the advance Kenosha Ave., Tulsa, SG100002546 regulations published in 52 FR 11954, public notices. Vernon A.M.E. Church, 311 N Greenwood April 13, 1987 (43 CFR 426.22), 5. All written comments received and Ave., Tulsa, SG100002547 Reclamation will publish notice of testimony presented at any public Additional documentation has been proposed or amendatory contract hearings will be reviewed and received for the following resource: actions for any contract for the delivery summarized by the appropriate regional

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office for use by the contract approving 3. Willamette Basin Water Users, O&M of the Main North Side Canal authority. Willamette Basin Project, Oregon: Water Headworks to the Minidoka ID. 6. Copies of specific proposed service contracts; $8 per acre-foot per 11. Clean Water Services and Tualatin contracts may be obtained from the annum. Valley ID, Tualatin Project, Oregon: appropriate regional director or his or 4. Pioneer Ditch Company, Boise Long-term water service contract that her designated public contact as they Project, Idaho; Clark and Edwards Canal provides for the District to allow Clean become available for review and and Irrigation Company, Enterprise Water Services to beneficially use up to comment. Canal Company, Ltd., Lenroot Canal 6,000 acre-feet annually of stored water 7. In the event modifications are made Company, Liberty Park Canal Company, for water quality improvement. in the form of a proposed contract, the Poplar ID, all in the Minidoka Project, 12. Willow Creek District appropriate regional director shall Idaho; and Juniper Flat District Improvement Company, Willow Creek determine whether republication of the Improvement Company, Wapinitia Project, Oregon: Amend contract to notice and/or extension of the comment Project, Oregon: Amendatory repayment increase the amount of storage water period is necessary. and water service contracts; purpose is made available under the existing long- Factors considered in making such a to conform to the RRA. term contract from 2,500 to 3,500 acre- determination shall include, but are not 5. Nine water user entities of the feet. limited to, (i) the significance of the Arrowrock Division, Boise Project, 13. East Columbia Basin ID, Columbia modification, and (ii) the degree of Idaho: Repayment agreements with Basin Project, Washington: Amendment public interest which has been districts with spaceholder contracts for of renewal master water service contract expressed over the course of the repayment, per legislation, of the No. 159E101882, to authorize up to an negotiations. At a minimum, the reimbursable share of costs to additional 70,000 acres within the regional director will furnish revised rehabilitate Arrowrock Dam Outlet District that are located within the contracts to all parties who requested Gates under the O&M program. Odessa Subarea and eligible to the contract in response to the initial 6. Three irrigation water user entities, participate in the Odessa Groundwater public notice. Rogue River Basin Project, Oregon: Replacement Program, to receive Long-term contracts for exchange of Columbia Basin Project irrigation water Definitions of Abbreviations Used in the service; and to provide for additional Reports water service with three entities for the provision of up to 292 acre-feet of stored acreage development through future ARRA American Recovery and water from Applegate Reservoir (a water conservation measures. Reinvestment Act of 2009 14. Stanfield ID, Umatilla Basin USACE project) for irrigation use in BCP Boulder Canyon Project Project, Oregon: A short-term water exchange for the transfer of out-of- Reclamation Bureau of Reclamation service contract to provide for the use of stream water rights from the Little CAP Central Arizona Project conjunctive use water, if needed, for the CUP Central Utah Project Applegate River to instream flow rights purposes of pre-saturation or for such CVP Central Valley Project with the State of Oregon for instream use in October to extend their irrigation CRSP Colorado River Storage Project flow use. season. FR Federal Register 7. Conagra Foods Lamb Weston, Inc., IDD Irrigation and Drainage District 15. Yakima Nation and Cascade ID, ID Irrigation District Columbia Basin Project, Washington: Yakima Project, Washington: Long-term M&I Municipal and Industrial Miscellaneous purposes water service contract for an exchange of water and to O&M Operation and Maintenance contract providing for the delivery of up authorize the use of capacity in Yakima OM&R Operation, Maintenance, and to 1,500 acre-feet of water from the Project facilities to convey up to 10 Replacement Scooteney Wasteway for effluent P–SMBP Pick-Sloan Missouri Basin cubic feet per second of nonproject management. water during the non-irrigation season Program 8. Benton ID, Yakima Project, RRA Reclamation Reform Act of 1982 for fish hatchery purposes. SOD Safety of Dams Washington: Replacement contract to, 16. Talent, Medford, and Rogue River SRPA Small Reclamation Projects Act of among other things, withdraw the Valley IDs; Rogue River Basin Project; 1956 District from the Sunnyside Division Oregon: Contracts for repayment of USACE U.S. Army Corps of Engineers Board of Control; provide for direct reimbursable shares of SOD program WD Water District payment of the District’s share of total modifications for Howard Prairie Dam. Pacific Northwest Region: Bureau of operation, maintenance, repair, and 17. Falls ID, Michaud Flats Project, Reclamation, 1150 North Curtis Road, replacement costs incurred by the Idaho: Amendment to contract No. 14– Suite 100, Boise, Idaho 83706–1234, United States in operation of storage 06–100–851 to authorize the District to telephone 208–378–5344. division; and establish District participate in State water rental pool. 1. Irrigation, M&I, and Miscellaneous responsibility for operation, Mid-Pacific Region: Bureau of Water Users; Idaho, Oregon, maintenance, repair, and replacement Reclamation, 2800 Cottage Way, Washington, Montana, and Wyoming: for irrigation distribution system. Sacramento, California 95825–1898, Temporary or interim irrigation and 9. City of Prineville and Ochoco ID, telephone 916–978–5250. M&I water service, water storage, water Crooked River Project, Oregon: Long- 1. Irrigation water districts, individual right settlement, exchange, term contract to provide the City of irrigators, M&I and miscellaneous water miscellaneous use, or water replacement Prineville with a mitigation water users; California, Nevada, and Oregon: contracts to provide up to 10,000 acre- supply from Prineville Reservoir; with Temporary (interim) water service feet of water annually for terms up to 5 Ochoco ID anticipated to be a party to contracts for available project water for years; long-term contracts for similar the contract, as they are responsible for irrigation, M&I, or fish and wildlife service for up to 1,000 acre-feet of water O&M of the dam and reservoir. purposes providing up to 10,000 acre- annually. 10. Burley and Minidoka IDs, feet of water annually for terms up to 5 2. Rogue River Basin Water Users, Minidoka Project, Idaho: Supplemental years; temporary Warren Act contracts Rogue River Basin Project, Oregon: and amendatory contracts to transfer the for use of excess capacity in project Water service contracts; $8 per acre-foot O&M of the Main South Side Canal facilities for terms up to 5 years; per annum. Headworks to Burley ID and transfer the temporary conveyance agreements with

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the State of California for various CVP, California: Long-term water annually of the Agency’s American purposes; long-term contracts for similar service contract for up to 9,000 acre-feet River Middle Fork Project water for use service for up to 1,000 acre-feet from New Melones Reservoir, and by Reclamation, for a like amount of annually. possibly a long-term contract for storage CVP water from the Sacramento River 2. Contractors from the American of nonproject water in New Melones for use by the Agency. River Division, Delta Division, Cross Reservoir. 18. Irrigation contractors, Klamath Valley Canal, San Felipe Division, West 10. Madera-Chowchilla Water and Project, Oregon: Amendment of San Joaquin Division, San Luis Unit, Power Authority, CVP, California: repayment contracts or negotiation of and Elk Creek Community Services Agreement to transfer the OM&R and new contracts to allow for recovery of District; CVP; California: Renewal of 30 certain financial and administrative additional capital costs. interim and long-term water service activities related to the Madera Canal 19. Orland Unit Water User’s contracts; water quantities for these and associated works. Association, Orland Project, California: contracts total in excess of 2.1M acre- 11. Sacramento Suburban WD, CVP, Repayment contract for the SOD costs feet. These contract actions will be California: Execution of a long-term assigned to the irrigation of Stony Gorge accomplished through long-term Warren Act contract for conveyance of Dam. renewal contracts pursuant to Public 29,000 acre-feet of nonproject water. 20. Goleta WD, Cachuma Project, Law 102–575. Prior to completion of The contract will allow CVP facilities to California: An agreement to transfer title negotiation of long-term renewal be used to deliver nonproject water of the federally owned distribution contracts, existing interim renewal provided from the Placer County Water system to the District subject to water service contracts may be renewed Agency to the District for use within its approved legislation. through successive interim renewal of service area. 21. City of Santa Barbara, Cachuma contracts. 12. Town of Fernley, State of Project, California: Execution of a 3. Redwood Valley County WD, California, City of Reno, City of Sparks, temporary contract and a long-term SRPA, California: Restructuring the Washoe County, State of Nevada, Warren Act contract with the City for repayment schedule pursuant to Public Truckee-Carson ID, and any other local conveyance of nonproject water in Law 100–516. interest or Native American Tribal Cachuma Project facilities. 4. El Dorado County Water Agency, Interest who may have negotiated rights 22. Water user entities responsible for CVP, California: M&I water service under Public Law 101–618; Nevada and payment of O&M costs for Reclamation contract to supplement existing water California: Contract for the storage of projects in California, Nevada, and supply. Contract will provide for an non-Federal water in Truckee River Oregon: Contracts for extraordinary amount not to exceed 15,000 acre-feet reservoirs as authorized by Public Law maintenance and replacement funded annually authorized by Public Law 101– 101–618 and the Preliminary Settlement pursuant to ARRA. Added costs to rates 514 (Section 206) for El Dorado County Agreement. The contracts shall be to be collected under irrigation and Water Agency. The supply will be consistent with the Truckee River Water interim M&I ratesetting policies. subcontracted to El Dorado ID and Quality Settlement Agreement and the 23. Water user entities responsible for Georgetown Divide Public Utility terms and conditions of the Truckee payment of O&M costs for Reclamation District. River Operating Agreement. projects in California, Nevada, and 5. Sutter Extension WD, Delano- 13. Delta Lands Reclamation District Oregon: Contracts for extraordinary Earlimart ID, Pixley ID, the State of No. 770, CVP, California: Long-term maintenance and replacement funded California Department of Water Warren Act contract for conveyance of pursuant to Subtitle G of Public Law Resources, and the State of California up to 300,000 acre-feet of nonproject 111–11. Department of Fish and Wildlife; CVP; flood flows via the Friant-Kern Canal for 24. Cachuma Operation and California: Pursuant to Public Law 102– flood control purposes. Maintenance Board, Cachuma Project, 575, agreements with non-Federal 14. Pershing County Water California: Amendment to SOD contract entities for the purpose of providing Conservation District, Pershing County, No. 01–WC–20–2030 to provide for funding for Central Valley Project and Lander County; Humboldt Project; increased SOD costs associated with Improvement Act refuge water Nevada: Title transfer of lands and Bradbury Dam. conveyance and/or facilities features of the Humboldt Project. 25. Reclamation will become improvement construction to deliver 15. Mendota Wildlife Area, CVP, signatory to a three-party conveyance water for certain Federal wildlife California: Reimbursement agreement agreement with the Cross Valley refuges, State wildlife areas, and private between the California Department of Contractors and the California State wetlands. Fish and Wildlife and Reclamation for Department of Water Resources for 6. Horsefly, Klamath, Langell Valley, conveyance service costs to deliver conveyance of Cross Valley Contractors’ and Tulelake IDs; Klamath Project; Level 2 water to the Mendota Wildlife CVP water supplies that are made Oregon: Repayment contracts for SOD Area during infrequent periods when available pursuant to long-term water work on Clear Lake Dam. These districts the Mendota Pool is down due to service contracts. will share in repayment of costs, and unexpected but needed maintenance. 26. Westlands WD, CVP, California: each district will have a separate This action is taken pursuant to Public Negotiation and execution of a long- contract. Law 102–575, Title 34, Section term repayment contract to provide 7. Casitas Municipal WD, Ventura 3406(d)(1), to meet full Level 2 water reimbursement of costs related to the Project, California: Repayment contract needs of the Mendota Wildlife Area. construction of drainage facilities. This for SOD work on Casitas Dam. 16. San Luis WD, CVP, California: action is being undertaken to satisfy the 8. Warren Act Contracts, CVP, Proposed partial assignment of 2,400 Federal Government’s obligation to California: Execution of long-term acre-feet of the District’s CVP supply to provide drainage service to Westlands Warren Act contracts (up to 40 years) Santa Nella County WD for M&I use. located within the San Luis Unit of the with various entities for conveyance of 17. Placer County Water Agency, CVP, CVP. nonproject water in the CVP. California: Proposed exchange 27. San Luis WD, Meyers Farms 9. Tuolumne Utilities District agreement under section 14 of the 1939 Family Trust, and Reclamation; CVP; (formerly Tuolumne Regional WD), Act to exchange up to 71,000 acre-feet California: Revision of an existing

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contract between San Luis WD, Meyers 36. California Department of Fish and costs associated with SOD work on Boca Farms Family Trust, and Reclamation Game, CVP, California: To extend the Dam. providing for an increase in the term of and amend the existing water 48. Del Puerto WD, CVP, California: exchange of water from 6,316 to 10,526 service contract for the Department’s Negotiation of a short-term wheeling acre-feet annually and an increase in the San Joaquin Fish Hatchery to allow an agreement with the State of California, storage capacity of the bank to 60,000 increase from 35 to 60 cubic feet per Department of Water Resources to acre-feet. second of continuous flow to pass provide for the conveyance and delivery 28. San Joaquin Valley National through the Hatchery prior to it of CVP water through the State of Cemetery, U.S. Department of Veteran returning to the San Joaquin River. California’s water project facilities to Affairs; Delta Division, CVP; California: 37. Orland Unit Water User’s Del Puerto Water District via a state Negotiation of a multi-year wheeling Association, Orland Project, California: water project contractor. agreement with a retroactive effective Title transfer of lands and features of the Lower Colorado Region: Bureau of date of 2011 is pending. A wheeling Orland Project. Reclamation, P.O. Box 61470 (Nevada agreement with the State of California 38. Santa Clara Valley WD, CVP, Highway and Park Street), Boulder City, Department of Water Resources California: Second amendment to Santa Nevada 89006–1470, telephone 702– provides for the conveyance and Clara Valley WD’s water service contract 293–8192. delivery of CVP water through the State to add CVP-wide form of contract 1. Milton and Jean Phillips, BCP, of California’s water project facilities to language providing for mutually agreed Arizona: Develop a Colorado River the San Joaquin Valley National upon point or points of delivery. water delivery contract for 60 acre-feet Cemetery. 39. PacifiCorp, Klamath Project, of Colorado River water per year as 29. Byron-Bethany ID, CVP, Oregon and California: Transfer of O&M recommended by the Arizona California: Negotiation of a multi-year of Link River Dam and associated Department of Water Resources. wheeling agreement with a retroactive facilities. Contract will allow for the 2. Gila Project Works, Gila Project, effective date is pending. A wheeling continued O&M by PacifiCorp. Arizona: Perform title transfer of agreement with the State of California 40. Tulelake ID, Klamath Project, facilities and certain lands in the Department of Water Resources Oregon and California: Transfer of O&M Wellton-Mohawk Division from the provides for the conveyance and of Station 48 and gate on Drain No. 1, United States to the Wellton-Mohawk delivery of CVP water through the State Lost River Diversion Channel. IDD. 3. Bard WD, Yuma Project, California: of California’s water project facilities, to 41. Fresno County Waterworks No. Supersede and replace the District’s the Musco Family Olive Company, a 18; Friant Division, CVP; California: O&M contract for the Yuma Project, customer of Byron-Bethany ID. Execution of an agreement to provide for the O&M of select Federal facilities California, Reservation Division, Indian 30. Contra Costa WD, CVP, California: by Fresno County Waterworks No. 18. Unit, to reflect that appropriated funds Amendment to an existing O&M 42. U.S. Fish and Wildlife Service, are no longer available, and to specify agreement to transfer O&M of the Contra Tulelake ID; Klamath Project; Oregon an alternate process for transfer of Costa Rock Slough Fish Screen to the and California: Water service contract funds. In addition, other miscellaneous District. Initial construction funding for deliveries to Lower Klamath processes required for Reclamation’s provided through ARRA. National Wildlife Refuge, including contractual administration and 31. Irrigation water districts, transfer of O&M responsibilities for the oversight will be updated to ensure the individual irrigators and M&I water P Canal system. Federal Indian Trust obligation for users, CVP, California: Temporary water 43. Tulelake ID, Klamath Project, reservation water and land are met. service contracts for terms not to exceed Oregon and California: Amendment of 4. Ogram Farms, BCP, Arizona: Assign 1 year for up to 100,000 acre-feet of repayment contract to eliminate the contract to the new landowners and surplus supplies of CVP water resulting reimbursement for P Canal O&M costs. revise Exhibit A of the contract to from an unusually large water supply, 44. East Bay Municipal Utility change the contract service area and not otherwise storable for project District, CVP, California: Long-term points of diversion/delivery. purposes, or from infrequent and Warren Act contract for storage and 5. Ogram Boys Enterprises, Inc., BCP, otherwise unmanaged flood flows of conveyance of up to 47,000 acre-feet Arizona: Revise Exhibit A of the short duration. annually. contract to change the contract service 32. Irrigation water districts, 45. Gray Lodge Wildlife Area, CVP, area and points of diversion/delivery. individual irrigators, M&I and California: Reimbursement agreement 6. City of Yuma, BCP, Arizona: Enter miscellaneous water users, CVP, between the California Department of into a long-term consolidated contract California: Temporary Warren Act Fish and Wildlife and Reclamation for with the City for delivery of its Colorado contracts for terms up to 5 years groundwater pumping costs. River water entitlement. providing for use of excess capacity in Groundwater will provide a portion of 7. Gold Dome Mining Corporation and CVP facilities for annual quantities Gray Lodge Wildlife Area’s Central Wellton-Mohawk IDD, Gila Project, exceeding 10,000 acre-feet. Valley Improvement Act Level 4 water Arizona: Terminate contract No. 0–07– 33. City of Redding, CVP, California: supplies. This action is taken pursuant 30–W0250 pursuant to Articles 11(d) Proposed partial assignment of 30 acre- to Public Law 102–575, Title 34, Section and 11(e). feet of the City of Redding’s CVP water 3406(d)(1, 2 and 5), to meet full Level 8. Estates of Anna R. Roy and Edward supply to the City of Shasta Lake for 4 water needs of the Gray Lodge P. Roy, Gila Project, Arizona: Terminate M&I use. Wildlife Area. contract No. 6–07–30–W0124 pursuant 34. Langell Valley ID, Klamath 46. State of Nevada, Newlands to Article 9(c). Project; Oregon: Title transfer of lands Project, Nevada: Title transfer of lands 9. Reclamation, Davis Dam (Davis and facilities of the Klamath Project. and features of the Carson Lake and Dam) and Big Bend WD; BCP; Arizona 35. Sacramento River Division, CVP, Pasture. and Nevada: Enter into proposed California: Administrative assignments 47. Washoe County Water ‘‘Agreement for the Diversion, of various Sacramento River Settlement Conservation District, Truckee Storage Treatment, and Delivery of Colorado Contracts. Project, Nevada: Repayment contract for River Water’’ in order for the District to

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divert, treat, and deliver to Davis Dam the San Carlos Apache Tribe to lease from San Juan-Chama Project the Davis Dam Secretarial Reservation 500 acre-feet of its CAP water to the contractors in 2017. amount of up to 100 acre-feet per year Pascua Yaqui Tribe during calendar year 4. Bridger Valley Water Conservancy of Colorado River water. 2018. District, Lyman Project, Wyoming: The 10. Cibola Valley IDD and Western 19. San Carlos Apache Tribe and District has requested that its Meeks Water, LLC, BCP, Arizona: Execute a Freeport Minerals Corporation, CAP, Cabin repayment contract be amended proposed partial assignment of fourth Arizona: Execute a CAP water lease in from two 25-year contacts to one 40-year priority Colorado River water in the order for the San Carlos Apache Tribe contract, or that the second 25-year amount of 621.48 acre-feet per year from to lease 17,010 acre-feet of its CAP water contract be negotiated, as outlined in the District to Western Water, LLC and to Freeport Minerals Corporation during the original contract. a new Colorado River water delivery calendar year 2018. 5. Strawberry High Line Canal contract with Western Water, LLC. Discontinued contract action: Company, Strawberry Valley Project; 11. Red River Land Company, LLC; 1. (11) Reclamation, Arizona Utah: The Strawberry High Line Canal BCP; Arizona: Review and approve a Department of Water Resources, Arizona Company has requested to allow for the proposed partial assignment of 300 acre- Water Banking Authority, Central carriage of nonproject water held by feet per year of Arizona fourth priority Arizona Water Conservation District, McMullin Orchards in the High Line Colorado River water entitlement from Southern Nevada Water Authority, and Canal. Cibola Valley IDD to Red River and The Metropolitan Water District of 6. Grand Valley Water Users execute the associated amendment to Southern California; BCP; Arizona, Association and Orchard Mesa ID, Cibola Valley IDD’s contract and enter California and Nevada: Begin Grand Valley Project, Colorado: A into a Colorado River water delivery negotiations to enter into proposed contract under the Upper Colorado contract with Red River. ‘‘Storage and Interstate Release Recovery Program for delivery of non- 12. Mohave County Water Authority, Agreement(s)’’ for creation, offstream project water to the Grand Valley Power BCP, Arizona: Execute Exhibit B, storage, and release of unused basic or Plant. The U.S. Fish and Wildlife Revision 6 that will supersede and surplus Colorado River apportionment Service will also be a party to the replace Exhibit B, Revision 5 to the within the lower division states contract. Authority’s Colorado River water pursuant to 43 CFR part 414. 7. Eden Valley IDD, Eden Project, delivery contract in order to update the Completed contract action: Wyoming: The District proposes to raise annual diversion amounts to be used 1. (23) Imperial ID, Lower Colorado the level of Big Sandy Dam to fully within each of the contract service River Water Supply Project, California: perfect its water rights. A supplemental areas. Amend the agreement between O&M agreement will be necessary to 13. Rayner Ranches, BCP, Arizona: Reclamation and Imperial ID to extend obtain the authorization to modify Review and approve a proposed the term for the funding of design, Federal facilities. assignment of Rayner Ranches Colorado construction, and installation of power 8. Tri-County Water Conservancy River water delivery contract for 4,500 facilities for the Lower Colorado Water District, Dallas Creek Project, Colorado: acre-feet per year to GM Gabrych Supply Project. Contract executed A contract under the Upper Colorado Family, LP and execute a new Colorado October 25, 2017. Recovery Program to construct and River water delivery contract with GM Upper Colorado Region: Bureau of transfer O&M of a fish barrier net at Gabrych Family, LP. Reclamation, 125 South State Street, Dallas Creek Project. The State of 14. Sarah S. Chesney, BCP, Arizona: Room 8100, Salt Lake City, Utah 84138– Colorado, Colorado Parks and Wildlife Review and approve a proposed 1102, telephone 801–524–3864. Department will also be a party to the assignment of Sarah S. Chesney’s 1. Individual irrigators, M&I, and contract. contract for the conveyance of Colorado miscellaneous water users; Initial Units, 9. Dolores Water Conservancy River water from Sarah S. Chesney to CRSP; Utah, Wyoming, Colorado, and District, Dolores Project, Colorado: The WPI II—COL FARM AZ, LLC. New Mexico: Temporary (interim) water District has requested a contract 15. San Carlos Apache Tribe and the service contracts for surplus project amendment to update articles related to Town of Gilbert, CAP, Arizona: Execute water for irrigation or M&I use to releases for downstream uses. a proposed 100-year lease not to exceed provide up to 10,000 acre-feet of water 10. Newton Water Users Association, 5,925 acre-feet per year of CAP water annually for terms up to 10 years; long- Newton Project; Utah: The Utah from the Tribe to Gilbert. term contracts for similar service for up Division of Wildlife Resources desires to 16. San Carlos Apache Tribe and the to 1,000 acre-feet of water annually. install a fish screen on the outlet works Town of Gilbert, CAP, Arizona: Execute 2. Contracts with various water user of Newton Dam. This requires an amendment No. 7 to a CAP water lease entities responsible for payment of O&M agreement to approve modification to to extend the term of the lease in order costs for Reclamation projects in Federal Reclamation facilities. for San Carlos Apache Tribe to lease Arizona, Colorado, New Mexico, Texas, 11. Pojoaque Valley ID, San Juan- 20,000 acre-feet of its CAP water to the Utah, and Wyoming: Contracts for Chama Project, New Mexico: An Town of Gilbert during calendar year extraordinary maintenance and amendment to the repayment contract to 2018. replacement funded pursuant to Subtitle reflect the changed allocations as a 17. Fort McDowell Yavapai Nation G of Public Law 111–11 to be executed result of the Aamodt Litigation and the Town of Gilbert, CAP, Arizona: as project progresses. Settlement Act (Title VI of the Claims Execute amendment No. 6 to a CAP 3. Middle Rio Grande Project, New Resolution Act of 2010, Pub. L. 111– water lease to extend the term of the Mexico: Reclamation continues annual 291, December 8, 2010) is being lease in order for Fort McDowell leasing of water from various San Juan- discussed. Yavapai Nation to lease 13,933 acre-feet Chama Project contractors to stabilize 12. South Cache Water Users of its CAP water to the Town of Gilbert flows in a critical reach of the Rio Association, Hyrum Project, Utah: during calendar year 2018. Grande in order to meet the needs of Problems with the spillway at Hyrum 18. San Carlos Apache Tribe and the irrigators and preserve habitat for the Dam require the construction of a new Pascua Yaqui Tribe, CAP, Arizona: silvery minnow. Reclamation leased spillway under the SOD Act, as Execute a CAP water lease in order for approximately 15,067 acre-feet of water amended. A repayment contract is

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necessary to recover 15 percent of the generation plant at Causey Reservoir to consistent with the Colorado Ute construction costs in accordance with take advantage of winter releases. This Settlement Act Amendments of 2000 the SOD Act. will likely be accomplished through a (Title III of Pub. L. 106–554) and the 13. Uintah Water Conservancy supplemental O&M contract. Northwestern New Mexico Rural Water District; Vernal Unit, CUP; Utah: Due to 22. Central Utah Water Conservancy Projects Act (Title X of Pub. L. 111–11); sloughing on the face of Steinaker Dam District; Bonneville Unit, CUP; Utah: (b) City of Farmington, New Mexico, north of Vernal, Utah, a SOD fix The District has received a request to title transfer agreement for the Navajo authorized under the SOD Act may be convert 300 acre-feet of irrigation water Nation Municipal Pipeline for facilities necessary to perform the various in Wasatch County to M&I purposes. and land inside the corporate functions needed to bring Steinaker This will require an amended block boundaries of the City of Farmington; Reservoir back to full capacity. This will notice. New Mexico, contract terms to be require a repayment contract with the 23. Mancos Water Conservancy consistent with the Colorado Ute United States. District, Mancos Project, Colorado: Settlement Act Amendments of 2000 14. Salt River Project Agricultural Proposed preliminary lease and funding (Title III of Pub. L. 106–554) and the Improvement and Power District, Salt agreement for preliminary work Northwestern New Mexico Rural Water River Project; Glen Canyon Unit, CRSP; associated with potential lease of power Projects Act (Title X of Pub. L. 111–11); Arizona: The District has requested an privilege. and (c) Operations agreement among the extension of its existing contract from 24. Mancos Water Conservancy United States, Navajo Nation, and City 2034 through 2044. This action is District, Mancos Project, Colorado: of Farmington for the Navajo Nation awaiting further development by the Proposed funding agreement for Municipal Pipeline pursuant to Public District. preliminary work associated with the Law 111–11, Section 10605(b)(1) that 15. Dolores Water Conservancy evaluation of title transfer. sets forth any terms and conditions that District, Dolores Project, Colorado: The 25. Collbran Water Conservancy secures an operations protocol for the District has requested a water service District, Collbran Project, Colorado: M&I water supply. contract for 1,402 acre-feet of newly Laramie Energy has requested a water 31. Weber Basin Water Conservancy identified project water for irrigation. exchange contract. District, Weber Basin Project, Utah: The The proposed water service contract 26. Mancos Water Conservancy District has requested a contract to will provide 417 acre-feet of project District, Mancos Project, Colorado: The allow the storage of Weber Basin Project water for irrigation of the Ute Enterprise District and Reclamation are discussing water in Smith Morehouse Reservoir and 985 acre-feet for use by the an amendment to the Public Law 111– under the authority of Section 14 of the District’s full-service irrigators. 11 repayment contract for rehabilitation Reclamation Projects Act of 1939. 16. Utah Division of State Parks, Utah: of the Jackson Gulch facilities to 32. Strawberry High Line Canal Requested an early renewal of its 11 continue to facilitate the District’s Company, Strawberry Valley Project; State Parks Agreements for recreation ability to receive funding under the Utah: The Strawberry High Line Canal management at various Reclamation legislation. Company has requested a conversion of Reservoirs. 27. Collbran Water Conservancy up to 20,000 acre-feet of irrigation water 17. State of Wyoming, Seedskadee District, Collbran Project, Colorado: The to be allowed for miscellaneous use. Project; Wyoming. The Wyoming Water District has requested an exchange 33. Emery County Water Conservancy Development Commission is interested contract with William Morse for District, Emery County Project, Utah: in purchasing an additional 65,000 acre- exchange of water on the Collbran The District has requested to convert 79 feet of M&I water from Fontenelle Project. acre-feet of Cottonwood Creek Reservoir. 28. Ute Mountain Ute Tribe, Animas- Consolidated Irrigation Company water 18. Ute Indian Tribe of the Uinta and La Plata Project, Colorado: Ute from irrigation to M&I uses. Ouray Reservation, CUP, Utah: The Ute Mountain Ute Tribe has requested a 34. City of Page, Arizona; Glen Indian Tribe of the Uinta and Ouray water delivery contract for 16,525 acre- Canyon Unit, CRSP; Arizona: Request Reservation has requested the use of feet of M&I water; contract terms to be for a long-term contract for 975 acre-feet excess capacity in the Strawberry consistent with the Colorado Ute of water for municipal purposes. Aqueduct and Collection System, as Settlement Act Amendments of 2000 Discontinued contract actions: authorized in the CUP Completion Act (Title III of Pub. L. 106–554). 1. (11) Newton Water Users legislation. 29. Navajo-Gallup Water Supply Association, Newton Project; Utah: The 19. Ute Indian Tribe of the Uinta and Project, New Mexico: Reclamation Utah Division of Wildlife Resources Ouray Reservation; Flaming Gorge Unit, continues negotiations on an OM&R desires to install a fish screen on the CRSP; Utah: As part of discussions on transfer contract with the Navajo Tribal outlet works of Newton Dam. This settlement of a potential compact, the Utility Authority pursuant to Public requires a supplementary O&M Ute Indian Tribe of the Uinta and Ouray Law 111–11, Section 10602(f) which agreement to approve modification to Reservation has indicated interest in transfers responsibilities to carry out the Federal Reclamation facilities. storage of its potential water right in OM&R of transferred works of the 2. (13) Weber Basin Water Flaming Gorge Reservoir. Project; ensures the continuation of the Conservancy District, A.V. Watkins 20. State of Utah; Flaming Gorge Unit, intended benefits of the Project; Dam, Utah: The United States intends to CRSP; Utah: The State of Utah has distribution of water; and sets forth the enter into an implementation agreement requested contracts that will allow the allocation and payment of annual with the District giving the District the full development and use of the CUP OM&R costs of the Project. authority to modify Federal facilities to Ultimate Phase water right of 158,000 30. Animas-La Plata Project, raise the crest of A.V. Watkins Dam. acre-feet of depletion, which was Colorado-New Mexico: (a) Navajo Completed contract actions: previously assigned to the State of Utah. Nation title transfer agreement for the 1. (5) Ephraim Irrigation Company, 21. Weber Basin Water Conservancy Navajo Nation Municipal Pipeline for Sanpete Project, Utah: The Company District, Weber Basin Project, Utah: The facilities and land outside the corporate proposes to enclose the Ephraim Tunnel District has requested permission to boundaries of the City of Farmington, with a 54-inch pipe. A supplemental install a low-flow hydro-electric New Mexico; contract terms to be O&M agreement will be necessary to

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obtain the authorization to modify Renewal of long-term water service Consideration of a renewal of contract Federal facilities. Agreement executed contract. with the Town of Estes Park. April 19, 2017. 8. Busk-Ivanhoe, Inc., Fryingpan- 21. Bureau of Land Management, 2. (35) VBC Owners Association; Arkansas Project, Colorado: Contract for Fryingpan-Arkansas Project, Colorado: Aspinall Unit, CRSP; Colorado: The long-term carriage and storage, and/or a Consideration of excess capacity association has requested a long-term new contract for an additional use of contracting to store water in the water service contract for 8 acre-feet of water. Fryingpan-Arkansas Project. water out of the Aspinall Unit, CRSP. 9. State of Kansas Department of 22. Southeastern Colorado Water Contract executed September 11, 2017. Wildlife and Parks; Glen Elder Unit, P– Conservancy District, Fryingpan- 3. (39) Florida Water Conservancy SMBP; Kansas: Intent to enter into a Arkansas Project, Colorado: District, Florida Project, Colorado: The contract for the remaining conservation Consideration of amending contract No. United States and the District, pursuant storage in Waconda Lake for recreation 5–07–70–W0086 and convert or renew to Section 4 of the CRSP, and subsection and fish and wildlife purposes. contract No. 5–07–70–W0086. 9(c)(2) of the Reclamation Projects Act 10. Arkansas Valley Conduit, 23. Fresno Dam, Milk River Project, of 1939, propose to execute a water Fryingpan-Arkansas Project, Colorado: Montana: Consideration of contract(s) service contract for 2,500 acre-feet of Consideration of a repayment contract for repayment of SOD costs. Florida Project water for M&I and other for the Arkansas Valley Conduit, and 24. Western Heart River ID; Heart miscellaneous beneficial uses, other signing a contract to use infrastructure Butte Unit, P–SMBP; North Dakota: than commercial agricultural irrigation, owned by the Pueblo Board of Water Consideration of contract for repayment within the District boundaries in La Works. of SOD costs. Plata County, Colorado. Contract 11. Donala Water and Sanitation 25. Keyhole Country Club; Keyhole executed October 18, 2017. District, Fryingpan-Arkansas Project, Unit, P–SMBP; North Dakota: Great Plains Region: Bureau of Colorado: Consideration of a long-term Consideration of renewal of contract No. Reclamation, P.O. Box 36900, Federal excess capacity contract. 8–07–60–WS042. Building, 2021 4th Avenue North, 12. Purgatoire Water Conservancy 26. Canyon Ferry Water Users Billings, Montana 59101, telephone District, Trinidad Project, Colorado: Association; Canyon Ferry Unit, P– 406–247–7752. Consideration of a request to amend the SMBP; 1. Irrigation, M&I, and miscellaneous contract. Montana: Consideration for new long- water users; Colorado, Kansas, Montana, 13. Central Oklahoma Master term repayment contract. Nebraska, North Dakota, Oklahoma, Conservancy District, Norman Project, 27. City of Thermopolis; Boysen Unit, South Dakota, Texas, and Wyoming: Oklahoma: Amend existing contract No. P–SMBP; Wyoming: Consideration for Water service contracts for the sale, 14–06–500–590 to execute a separate renewal of long-term water service conveyance, storage, and exchange of contract(s) to allow for importation and contract No. 8–07–WS050 with the City surplus project water and nonproject storage of nonproject water in of Thermopolis. water for irrigation or M&I use to accordance with the Lake Thunderbird 28. Kansas Bostwick ID, Bostwick provide up to 10,000 acre-feet of water Efficient Use Act of 2012. Division, P–SMBP, Kansas: annually for a term of up to 1 year, or 14. Tom Green County Water Control Consideration of an excess capacity up to 1,000 acre-feet of water annually and Improvement District No. 1, San contract to store water in Harlan County for a term of up to 40 years. Angelo Project, Texas: Consideration of Lake. 2. Water user entities responsible for a potential contract(s) for use of excess Discontinued contract action: payment of O&M costs for Reclamation capacity by individual landowner(s) for 1. (7) Northern Integrated Supply projects in Colorado, Kansas, Montana, irrigation purposes. Project, Colorado-Big Thompson Project, 15. Western Heart River ID; Heart Nebraska, North Dakota, Oklahoma, Colorado: Consideration of a new long- Butte Unit, P–SMBP; North Dakota: South Dakota, Texas, and Wyoming: term contract with approximately 15 Consideration of amending the long- Contracts for extraordinary maintenance regional water suppliers and the term irrigation repayment contract and and replacement funded pursuant to Northern Colorado Water Conservancy project-use power contract to include Subtitle G of Public Law 111–11. District for the Northern Integrated 3. Green Mountain Reservoir, additional acres. Supply Project. Colorado-Big Thompson Project, 16. Dickinson-Heart River Mutual Aid Colorado: Water service contracts for Corporation; Dickinson Unit, Heart Dated: February 12, 2018. irrigation and M&I; contracts for the sale Division; P–SMBP; North Dakota: Ruth Welch, of water from the marketable yield to Consideration of amending the long- Director, Policy and Administration. water users within the Colorado River term irrigation water service contract to [FR Doc. 2018–10412 Filed 5–15–18; 8:45 am] Basin of western Colorado. modify the acres irrigated. BILLING CODE 4332–90–P 4. Garrison Diversion Conservancy 17. Buford-Trenton ID, Buford- District, Garrison Diversion Unit, P– Trenton Project, P–SMBP; North Dakota: SMBP, North Dakota: Intent to modify Consideration of amending the long- DEPARTMENT OF THE INTERIOR long-term water service contract to add term irrigation power repayment additional irrigated acres. contract and project-use power contract Bureau of Reclamation 5. Fryingpan-Arkansas Project, to include additional acres. Colorado: Consideration of excess 18. Milk River Project, Montana: [RR02054000, 18XR0687NA, capacity contracting in the Fryingpan- Proposed amendment to contracts to RX.18527901.3000000] Arkansas Project. reflect current landownership. 6. Colorado-Big Thompson Project, 19. Glen Elder ID No. 8; Glen Elder Central Valley Project Improvement Colorado: Consideration of excess Unit, P–SMBP; Kansas: Consideration to Act Water Management Plans capacity contracting in the Colorado-Big renew long-term water service contract AGENCY: Bureau of Reclamation, Thompson Project. No. 2–07–60–W0855. Interior. 7. Roger W. Evans (Individual); 20. Town of Estes Park, Colorado-Big ACTION: Notice of availability. Boysen Unit, P–SMBP; Wyoming: Thompson Project, Colorado:

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SUMMARY: The Bureau of Reclamation 410, Sacramento, CA 95825. If you wish Regulations and Standards Branch; has made available to the public the to review a copy of these Plans, please ATTN: Nicole Mason; 45600 Woodland Water Management Plans for twelve contact Ms. Stemen. Road, Sterling, VA 20166. Please entities. For the purpose of this reference OMB Control Number 1014– Public Disclosure announcement, Water Management 0024 in the subject line of your Plans (Plans) are considered the same as Our practice is to make comments, comments. including names and home addresses of Water Conservation Plans. Reclamation FOR FURTHER INFORMATION CONTACT: To is publishing this notice in order to respondents, available for public request additional information about allow the public an opportunity to review. Before including your address, this ICR, contact Nicole Mason by email review the Plans and comment on the phone number, email address, or other at [email protected] or by telephone preliminary determinations. personal identifying information in your at (703) 787–1607. comment, you should be aware that DATES: Submit written comments on the SUPPLEMENTARY INFORMATION: your entire comment—including your In preliminary determinations on or before accordance with the Paperwork June 15, 2018. personal identifying information—may be made publicly available at any time. Reduction Act of 1995, we provide the ADDRESSES: Send written comments to While you can ask us in your comment general public and other Federal Ms. Charlene Stemen, Bureau of to withhold your personal identifying agencies with an opportunity to Reclamation, 2800 Cottage Way, MP– information from public review, we comment on new, proposed, revised, 400, Sacramento, CA 95825; or via email cannot guarantee we will be able to do and continuing collections of at [email protected]. so. information. This helps us assess the FOR FURTHER INFORMATION CONTACT: To impact of our information collection be placed on a mailing list for any Dated: May 8, 2018. requirements and minimize the public’s subsequent information, please contact Richard J. Woodley, reporting burden. It also helps the Ms. Charlene Stemen at cstemen@ Regional Resources Manager, Mid-Pacific public understand our information usbr.gov, or at 916–978–5218 (TDD 978– Region, Bureau of Reclamation. collection requirements and provide the 5608). [FR Doc. 2018–10409 Filed 5–15–18; 8:45 am] requested data in the desired format. We are soliciting comments on the SUPPLEMENTARY INFORMATION: Section BILLING CODE 4332–90–P 3405(e) of the Central Valley Project proposed ICR that is described below. Improvement Act (Title 34 Pub. L. 102– We are especially interested in public DEPARTMENT OF THE INTERIOR 575), requires the Secretary of the comments addressing the following Interior to, amongst other things, issues: (1) Is the collection necessary to Bureau of Safety and Environmental the proper functions of BSEE; (2) Will ‘‘develop criteria for evaluating the Enforcement adequacy of all water conservation this information be processed and used plans’’ developed by certain contractors. [Docket ID BSEE–2018–0009; 189E1700D2 in a timely manner; (3) Is the estimate According to Section 3405(e)(1), these ET1SF0000.PSB000.EEEE500000; OMB of burden accurate; (4) How might BSEE criteria must promote, ‘‘the highest level Control Number 1014–0024] enhance the quality, utility, and clarity of water use efficiency reasonably of the information to be collected; and Agency Information Collection (5) How might BSEE minimize the achievable by project contractors using Activities; Plans and Information best available cost-effective technology burden of this collection on the respondents, including through the use and best management practices.’’ In AGENCY: Bureau of Safety and accordance with this legislative of information technology. Environmental Enforcement, Interior. Comments that you submit in mandate, the Bureau of Reclamation ACTION: Notice of information collection; response to this notice are a matter of developed and published the Criteria for request for comment. public record. We will include or Evaluating Water Management Plans summarize each comment in our request (Criteria). Each of the twelve entities SUMMARY: In accordance with the to OMB to approve this ICR. Before listed below developed a Plan that Paperwork Reduction Act of 1995, the including your address, phone number, Reclamation evaluated and Bureau of Safety and Environmental email address, or other personal preliminarily determined meets the Enforcement (BSEE) proposes to renew identifying information in your requirements of the Criteria. The an information collection. comment, you should be aware that following Plans are available for review: DATES: Interested persons are invited to your entire comment—including your • City of Roseville submit comments on or before July 16, personal identifying information—may • City of Santa Barbara 2018. be made publicly available at any time. • Contra Costa Water District ADDRESSES: Send your comments on While you can ask us in your comment • Del Puerto Water District this information collection request (ICR) to withhold your personal identifying • Dunnigan Water District by either of the following methods listed information from public review, we • East Bay Municipal Utilities District below: cannot guarantee that we will be able to • El Dorado Irrigation District • Electronically go to http:// do so. • Proberta Water District www.regulations.gov. In the Search box, Abstract: The regulations at 30 CFR • Santa Clara Valley Water District enter BSEE–2018–0009 then click part 250, subpart B, concern plans and • Shafter-Wasco Irrigation District search. Follow the instructions to information and are the subject of this • Truckee-Carson Irrigation District submit public comments and view all collection. This request also covers any • Tulelake Irrigation District related materials. We will post all related Notices to Lessees and Operators We invite the public to comment on comments. (NTLs) that BSEE issues to clarify, our preliminary (i.e., draft) • Email [email protected], fax supplement, or provide additional determination of Plan adequacy. A copy (703) 787–1546, or mail or hand-carry guidance on some aspects of our of these Plans will be available for comments to the Department of the regulations. review at Reclamation’s Mid-Pacific Interior; Bureau of Safety and Post-Approval Requirements for the Regional Office, 2800 Cottage Way, MP– Environmental Enforcement; Exploration Plans, Development and

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Production Plans, and Development Dated: March 5, 2018. impaired persons are advised that Operation Coordination Document: Doug Morris, information on this matter can be While the information is submitted to Chief, Office of Offshore Regulatory Programs. obtained by contacting the the Bureau of Ocean Energy [FR Doc. 2018–10415 Filed 5–15–18; 8:45 am] Commission’s TDD terminal on (202) Management, BSEE analyzes and BILLING CODE 4310–VH–P 205–1810. evaluates the information and data SUPPLEMENTARY INFORMATION: Section collected under this section of subpart 337 of the Tariff Act of 1930 provides B to verify that an ongoing/completed INTERNATIONAL TRADE that if the Commission finds a violation OCS operation is/was conducted in COMMISSION it shall exclude the articles concerned compliance with established from the United States: environmental standards placed on the [Investigation No. 337–TA–1046] unless, after considering the effect of such activity. Certain Non-Volatile Memory Devices exclusion upon the public health and Deepwater Operations Plan (DWOP): and Products Containing the Same; welfare, competitive conditions in the United BSEE analyzes and evaluates the Notice of Request for Statement on the States economy, the production of like or directly competitive articles in the United information and data collected under Public Interest this section of subpart B to ensure that States, and United States consumers, it finds planned operations are safe; will not AGENCY: U.S. International Trade that such articles should not be excluded adversely affect the marine, coastal, or Commission. from entry. human environment; and will conserve ACTION: Notice. 19 U.S.C. 1337(d)(1). A similar the resources of the OCS. We use the provision applies to cease and desist information to make an informed SUMMARY: Notice is hereby given that orders. 19 U.S.C. 1337(f)(1). decision on whether to approve the the presiding administrative law judge The Commission is interested in proposed DWOPs, or whether has issued a Final Initial Determination further development of the record on modifications are necessary without the and Recommended Determination on the public interest in these analysis and evaluation of the required Remedy and Bonding in the above- investigations. Accordingly, parties are information. captioned investigation. The to file public interest submissions Title of Collection: 30 CFR part 250, Commission is soliciting comments on pursuant to pursuant to 19 CFR subpart B, Plans and Information. public interest issues raised by the 210.50(a)(4). In addition, members of OMB Control Number: 1014–0024. recommended relief, specifically a the public are hereby invited to file limited exclusion order directed to Form Number: None. submissions of no more than five (5) respondents Toshiba Corporation of pages, inclusive of attachments, Type of Review: Extension of a Tokyo, Japan; Toshiba Memory concerning the public interest in light of currently approved collection. Corporation of Tokyo, Japan; Toshiba the administrative law judge’s Respondents/Affected Public: America, Inc. of New York, New York; Recommended Determination on Potential respondents comprise Federal Toshiba America Electronic Remedy and Bonding issued in this OCS oil, gas, and sulfur lessees/ Components, Inc. of Irvine, California; investigation on May 10, 2018. operators and holders of pipeline rights- Toshiba America Information Systems, Comments should address whether of-way. Inc. of Irvine, California; and Toshiba issuance of a limited exclusion order Total Estimated Number of Annual Information Equipment (Philippines), and cease and desist orders in this Respondents: Varies, not all potential Inc. of Binan, Philippines, and cease investigation would affect the public respondents will submit information in and desist orders directed to the health and welfare in the United States, any given year and some may submit domestic respondents. This notice is competitive conditions in the United multiple times. soliciting public interest comments from States economy, the production of like Total Estimated Number of Annual the public only. Parties are to file public or directly competitive articles in the Responses: 64. interest submissions pursuant to United States, or United States Estimated Completion Time per Commission rules. consumers. Response: Varies from 180 hours to FOR FURTHER INFORMATION CONTACT: In particular, the Commission is 1,140 hours, depending on activity. Panyin A. Hughes, Office of the General interested in comments that: Total Estimated Number of Annual Counsel, U.S. International Trade (i) Explain how the articles Burden Hours: 37,084. Commission, 500 E Street SW, potentially subject to the recommended Respondent’s Obligation: Most Washington, DC 20436, telephone (202) orders are used in the United States; responses are mandatory, while others 205–3042. The public version of the (ii) identify any public health, safety, are required to obtain or retain benefits. complaint can be accessed on the or welfare concerns in the United States Commission’s electronic docket (EDIS) relating to the recommended orders; Frequency of Collection: Submissions at https://edis.usitc.gov, and will be (iii) identify like or directly are generally on occasion. available for inspection during official competitive articles that complainant, Total Estimated Annual Nonhour business hours (8:45 a.m. to 5:15 p.m.) its licensees, or third parties make in the Burden Cost: $39,589. Submission of a in the Office of the Secretary, U.S. United States which could replace the DWOP (§ 250.292) requires a cost International Trade Commission, 500 E subject articles if they were to be recovery fee of $3,599. Street SW, Washington, DC 20436, excluded; An agency may not conduct or telephone (202) 205–2000. (iv) indicate whether complainant, sponsor and a person is not required to General information concerning the complainant’s licensees, and/or third respond to a collection of information Commission may also be obtained by party suppliers have the capacity to unless it displays a currently valid OMB accessing its internet server (https:// replace the volume of articles control number. www.usitc.gov). The public record for potentially subject to the recommended The authority for this action is the this investigation may be viewed on the exclusion order and/or a cease and Paperwork Reduction Act of 1995 (44 Commission’s electronic docket (EDIS) desist order within a commercially U.S.C. 3501 et seq). at https://edis.usitc.gov. Hearing- reasonable time; and

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(v) explain how the limited exclusion Issued: May 11, 2018. contact person and submit a brief order and cease and desist orders would Lisa Barton, statement of the general nature of the impact consumers in the United States. Secretary to the Commission. evidence or arguments they wish to Written submissions from the public [FR Doc. 2018–10451 Filed 5–15–18; 8:45 am] present, the names and addresses of must be filed no later than by close of BILLING CODE 7020–02–P proposed participants, and an business on June 5, 2018. indication of the approximate time requested to make their presentation on Persons filing written submissions or before June 8, 2018. must file the original document DEPARTMENT OF JUSTICE Closed Committee Deliberations: June electronically on or before the deadlines 22, 2018, between 8:00 a.m. and 11:00 stated above and submit 8 true paper National Institute of Corrections a.m., the meeting will be closed to copies to the Office of the Secretary by Advisory Board; Notice of Meeting permit discussion of information that (1) noon the next day pursuant to section relates solely to the internal personnel 210.4(f) of the Commission’s Rules of This notice announces a forthcoming rules and practices of an agency (5 Practice and Procedure (19 CFR meeting of the National Institute of U.S.C. 552b(c)(2)), and (2) is of a 210.4(f)). Submissions should refer to Corrections (NIC) Advisory Board. The personal nature where disclosure would the investigation number (‘‘Inv. No. meeting will be open to the public, with constitute a clearly unwarranted 337–TA–1016’’) in a prominent place on one portion closed to the public. invasion of personal privacy (5 U.S.C. the cover page and/or the first page. (See Name of the Committee: NIC 552b(c)(6)). The Advisory Board will Handbook for Electronic Filing Advisory Board. discuss the NIC Director candidates and Procedures, https://www.usitc.gov/ General Function of the Committee: recommendations made to the U.S. secretary/documents/handbook_on_ To aid the National Institute of Attorney General, the status of the filing_procedures.pdf). Persons with Corrections in developing long-range position, and the related appointment questions regarding filing should plans, advise on program development, process. contact the Secretary (202–205–2000). and recommend guidance to assist NIC’s General Information: NIC welcomes efforts in the areas of training, technical Any person desiring to submit a the attendance of the public at its assistance, information services, and document to the Commission in advisory committee meetings and will policy/program development assistance confidence must request confidential make every effort to accommodate to Federal, state, and local corrections treatment. All such requests should be persons with physical disabilities or agencies. directed to the Secretary to the special needs. If you require special Commission and must include a full Date and Time: 8:00 a.m.–4:30 p.m. on Thursday, June 21, 2018; 8:00 a.m.– accommodations due to a disability, statement of the reasons why the please contact Shaina Vanek at least 7 Commission should grant such 11:00 a.m. on Friday, June 22, 2018 Location: National Institute of days in advance of the meeting. Notice treatment. See 19 CFR 201.6. Documents of this meeting is given under the for which confidential treatment by the Corrections, 500 First Street NW, 2nd Floor, Washington, DC 20534, (202) Federal Advisory Committee Act (5 Commission is properly sought will be U.S.C. app. 2). treated accordingly. All information, 514–4202. including confidential business Contact Person: Shaina Vanek, Acting Shaina Vanek, information and documents for which Director, National Institute of Acting Director, National Institute of confidential treatment is properly Corrections, 320 First Street NW, Room Corrections. sought, submitted to the Commission for 5002, Washington, DC 20534. To contact [FR Doc. 2018–10406 Filed 5–15–18; 8:45 am] Ms. Vanek, please call (202) 514–4202. purposes of this Investigation may be BILLING CODE 4410–36–P disclosed to and used: (i) By the Agenda: On June 21, 2018, the Commission, its employees and Offices, Advisory Board will discuss/address the and contract personnel (a) for following topics: (1) Agency Report from the NIC NATIONAL TRANSPORTATION developing or maintaining the records Acting Director, SAFETY BOARD of this or a related proceeding, or (b) in (2) briefings on current activities and internal investigations, audits, reviews, future goals, and Sunshine Act Meeting and evaluations relating to the (3) updates from partner agencies and programs, personnel, and operations of TIME AND DATE: 9:30 a.m., Tuesday, May associations. On June 22, 2018, the the Commission including under 5 22, 2018. Advisory Board will discuss the NIC U.S.C. Appendix 3; or (ii) by U.S. Director candidates, the status of the PLACE: NTSB Conference Center, 429 government employees and contract position, and the related appointment L’Enfant Plaza SW, Washington, DC personnel,[1] solely for cybersecurity process. 20594. purposes. All nonconfidential written Procedure: On June 21, 2018, the STATUS: The one item is open to the submissions will be available for public meeting is open to the public. Interested public. inspection at the Office of the Secretary persons may present data, information, MATTERS TO BE CONSIDERED: and on EDIS. or views, orally or in writing, on issues 57905 Highway Special Investigation This action is taken under the pending before the committee. Written Report—Selective Issues in School authority of section 337 of the Tariff Act submissions may be made to the contact Bus Transportation Safety: Crashes of 1930, as amended (19 U.S.C. 1337), person on or before June 8, 2018. Oral in Baltimore, Maryland, and and in Part 210 of the Commission’s presentations from the public will be Chattanooga, Tennessee. Rules of Practice and Procedure (19 CFR scheduled between approximately 11:15 part 210). a.m. to 11:45 a.m. and 3:45 p.m. and News Media Contact: Telephone: (202) 314–6100 By order of the Commission. 4:15 p.m. on June 21, 2018. Time allotted for each presentation may be The press and public may enter the [1] All contract personnel will sign appropriate limited. Those desiring to make formal NTSB Conference Center one hour prior nondisclosure agreements. oral presentations should notify the to the meeting for set up and seating.

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Individuals requesting specific ADDRESSES: You may submit comments project can be accessed on the NRC’s accommodations should contact by any of the following methods: Holtec HI–STORE CISF web page at Rochelle McCallister at (202) 314–6305 • Federal Rulemaking Website: Go to https://www.nrc.gov/waste/spent-fuel- or by email at Rochelle.McCallister@ http://www.regulations.gov and search storage/cis/holtec-international.html. for Docket ID NRC–2018–0052. Address ntsb.gov by Wednesday, May 16, 2018. • Public Libraries: A copy of the The public may view the meeting via questions about NRC dockets to Jennifer application’s Environmental Report can a live or archived webcast by accessing Borges; telephone: 301–287–9127; a link under ‘‘News & Events’’ on the email: [email protected]. For be accessed at the following public NTSB home page at www.ntsb.gov. technical questions, contact the libraries: Carlsbad Public Library, 101 S. Schedule updates, including weather- individual listed in the FOR FURTHER Halegueno Street, Carlsbad, NM 88220; related cancellations, are also available INFORMATION CONTACT section of this Hobbs Public Library, 509 N. Shipp St., at www.ntsb.gov. document. Hobbs, NM 88240; or Roswell Public CONTACT PERSON FOR MORE INFORMATION: • Mail comments to: May Ma, Office Library, 301 N. Pennsylvania, Roswell, Candi Bing at (202) 314–6403 or by of Administration, Mail Stop: TWFN–7– NM 88201. email at [email protected]. A60M, U.S. Nuclear Regulatory B. Submitting Comments For Media Information Contact: Keith Commission, Washington, DC 20555– Holloway at (202) 314–6100 or by email 0001. Please include Docket ID NRC–2018– • at [email protected]. Email comments to: Holtec- 0052 in your comment submission. [email protected]. Monday, May 14, 2018. Written comments may be submitted For additional direction on obtaining during the scoping period as described LaSean McCray, information and submitting comments, Assistant Federal Register Liaison Officer. in the ADDRESSES section of this see ‘‘Obtaining Information and document. [FR Doc. 2018–10537 Filed 5–14–18; 11:15 am] Submitting Comments’’ in the BILLING CODE 7533–01–P SUPPLEMENTARY INFORMATION section of The NRC cautions you not to include this document. identifying or contact information that FOR FURTHER INFORMATION CONTACT: Jill you do not want to be publicly NUCLEAR REGULATORY Caverly, Office of Nuclear Material disclosed in your comment submission. COMMISSION Safety and Safeguards, U.S. Nuclear The NRC posts all comment Regulatory Commission, Washington DC submissions at http:// Docket No. 72–1051; NRC–2018–0052] 20555–0001; telephone: 301–415–7674; www.regulations.gov and enters all comment submissions into ADAMS. Holtec International HI–STORE email: [email protected]. SUPPLEMENTARY INFORMATION: The NRC does not routinely edit Consolidated Interim Storage Facility comment submissions to remove Project I. Obtaining Information and identifying or contact information. Submitting Comments AGENCY: Nuclear Regulatory If you are requesting or aggregating Commission. A. Obtaining Information comments from other persons for ACTION: Environmental impact Please refer to Docket ID NRC–2018– submission to the NRC, then you should statement; public scoping comment 0052 when contacting the NRC about inform those persons not to include meetings; extension of comment period. the availability of information for this identifying or contact information that they do not want to be publicly SUMMARY: On March 30, 2018, the U.S. action. You may obtain publicly- Nuclear Regulatory Commission (NRC) available information related to this disclosed in their comment submission, published in the Federal Register a action by the following methods: because the NRC does not routinely edit • Federal Rulemaking Website: Go to notice of its intent to prepare an comment submissions before making http://www.regulations.gov and search environmental impact statement (EIS) the comment submissions available to for Docket ID NRC–2018–0052. the public or entering the comment and requested public comments on the • NRC’s Agencywide Documents submissions into ADAMS. scope of its environmental review of Access and Management System Holtec International’s (Holtec) (ADAMS): You may obtain publicly- II. Meeting Information application for the HI–STORE available documents online in the Combined Interim Storage Facility ADAMS Public Documents collection at On March 30, 2018 (83 FR 13802), the (CISF). The NRC is announcing two http://www.nrc.gov/reading-rm/ NRC published in the Federal Register additional local public comment adams.html. To begin the search, select a notice of its intent to prepare an EIS scoping meetings, an extension of the ‘‘ADAMS Public Documents’’ and then on Holtec’s proposed CISF for spent comment period, and an additional select ‘‘Begin Web-based ADAMS nuclear fuel and requested public method to submit scoping comments by Search.’’ For problems with ADAMS, comments on the scope of the EIS. The email. please contact the NRC’s Public NRC has already held three local public DATES: The due date of comments Document Room (PDR) reference staff at meetings in Roswell, New Mexico; requested in the document published on 1–800–397–4209, 301–415–4737, or by Hobbs, New Mexico; and Carlsbad, New March 30, 2018 (83 FR 13802) is email to [email protected]. Mexico, as well as one webinar and a extended. Comments should be filed no • NRC’S PDR: You may examine and public meeting at NRC headquarters in later than July 30, 2018. Comments purchase copies of public documents at Rockville, Maryland. The NRC is received after this date will be the NRC’s PDR, Room O1–F21, One announcing two additional local public considered, if it is practical to do so, but White Flint North, 11555 Rockville scoping meetings in Gallup, New the Commission is able to ensure Pike, Rockville, Maryland 20852. Mexico, and Albuquerque, New Mexico. consideration only for comments • Project web page: Information The dates and times for the open houses received on or before this date. related to the Holtec HI–STORE CISF and public meetings are as follows:

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Meeting Date Time Location

Open House and Public Scoping Meeting May 21, 2018 ...... Open House 5:00 p.m.–6:00 Gallup, New Mexico. Address: Gallup p.m.; Public Meeting 6:00 Downtown Conference Center, 204 W p.m.–9:00 p.m. (MDT). Coal Ave., Gallup, NM 87301. Open House and Public Scoping Meeting May 22, 2018 ...... Open House 5:00 p.m.–6:00 Albuquerque, New Mexico. Address: p.m.; Public Meeting 6:00 Crown Plaza, 1901 University Blvd., p.m.–9:00 p.m. (MT). Albuquerque, NM 87102.

Persons interested in attending these Privacy Act Officer. Virginia Burke can This notice is issued in Washington, DC on meetings should check the NRC’s Public be contacted by telephone at 202–692– May 3, 2018. Meeting Schedule web page at https:// 1236 or email at [email protected] Virginia Burke, www.nrc.gov/pmns/mtg for additional Email comments must be made in text FOIA/Privacy Act Officer, Management. information and agendas for the and not in attachments. [FR Doc. 2018–09879 Filed 5–15–18; 8:45 am] meetings. FOR FURTHER INFORMATION CONTACT: BILLING CODE 6051–01–P III. Extending Public Comment Scoping Virginia Burke can be contacted by Period telephone at 202–692–1236 or email at [email protected]. PENSION BENEFIT GUARANTY The NRC is extending the public CORPORATION comment scoping period for an SUPPLEMENTARY INFORMATION: additional 60 days, to July 30, 2018. Title: RPCV Event Bulletin Board. Proposed Submission of Information IV. Submitting Comments OMB Control Number: 0420–****. Collection for OMB Review; Comment Type of Request: New. Request; Locating and Paying Members of the public have requested Participants the ability to submit their scoping Affected Public: Individuals. comments to an NRC email address, in Respondents Obligation to Reply: AGENCY: Pension Benefit Guaranty addition to the methods previously Voluntary. Corporation. offered through the mail and through Burden to the Public: ACTION: Notice of intent to request the Federal Rulemaking website. Estimated burden (hours) of the extension of OMB approval, with Accordingly, the NRC will now also collection of information: modifications. accept comments submitted by email to [email protected]. a. Number of respondents: 50. SUMMARY: The Pension Benefit Guaranty Corporation (PBGC) intends to request Dated at Rockville, Maryland, this 11th day b. Frequency of response: 10 times. of May, 2018. c. Completion time: 5 minutes. that the Office of Management and Budget (OMB) extend approval, with For the Nuclear Regulatory Commission. d. Annual burden hours: 42 hours. modifications, to a collection of Craig G. Erlanger, General Description of Collection: The information under the Paperwork Director, Division of Fuel Cycle Safety, event information submitted via the Reduction Act. The purpose of the Safeguards, and Environmental Review, form will be used to (1) populate events Office of Nuclear Material Safety and information collection is to enable Safeguards. on the RPCV Events Bulletin Board web PBGC to pay benefits to participants and page; (2) assess the events for [FR Doc. 2018–10418 Filed 5–15–18; 8:45 am] beneficiaries. This notice informs the compliance with the Peace Corps public of PBGC’s intent and solicits BILLING CODE 7590–01–P statutory authority, regulations, and public comment on the collection of policy; (3) enable 3GL to better information, as modified. understand and support activities of PEACE CORPS DATES: Comments must be submitted by RPCV groups related to the Third Goal July 16, 2018. and career; and (4) enable University Information Collection Request ADDRESSES: Comments may be Submission for OMB Review Programs to better understand and submitted by any of the following support activities of the Paul. D. methods: AGENCY: Peace Corps. Coverdell Fellows partner universities • Federal eRulemaking Portal: http:// ACTION: 60-Day notice and request for related to RPCV career development. www.regulations.gov. Follow the comments. Request for Comment: Peace Corps instructions for sending comments. invites comments on whether the • Email: paperwork.comments@ SUMMARY: The Peace Corps will be proposed collections of information are submitting the following information pbgc.gov. necessary for proper performance of the • Mail or Hand Delivery: Regulatory collection request to the Office of functions of the Peace Corps, including Affairs Division, Office of the General Management and Budget (OMB) for whether the information will have Counsel, Pension Benefit Guaranty review and approval. The purpose of practical use; the accuracy of the Corporation, 1200 K Street NW, this notice is to allow 60 days for public agency’s estimate of the burden of the Washington, DC 20005–4026. comment in the Federal Register proposed collection of information, All comments received must include preceding submission to OMB. We are including the validity of the information the agency’s name (Pension Benefit conducting this process in accordance to be collected; and, ways to minimize Guaranty Corporation, or PBGC) and the with the Paperwork Reduction Act of the burden of the collection of OMB Control Number for the 1995. information on those who are to information collection (OMB Control DATES: Submit comments on or before respond, including through the use of No. 1212–0055). All comments received July 16, 2018. automated collection techniques, when will be posted without change to ADDRESSES: Comments should be appropriate, and other forms of PBGC’s website, http://www.pbgc.gov, addressed to Virginia Burke, FOIA/ information technology. including any personal information

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provided. Copies of the collection of granting authority and for executing the Issued in Washington, DC, by information may also be obtained document (i.e., the principal’s signature Stephanie Cibinic, without charge by writing to the must be witnessed and notarized, and Deputy Assistant General Counsel for Disclosure Division, Office of the witnesses must meet certain criteria); Regulatory Affairs, Pension Benefit Guaranty General Counsel, Pension Benefit and Corporation. Guaranty Corporation, 1200 K Street • A ‘‘Notice to the Principal,’’ to alert [FR Doc. 2018–10374 Filed 5–15–18; 8:45 am] NW, Washington, DC 20005–4026, or the principal about what powers she is BILLING CODE 7709–02–P calling 202–326–4040 during normal granting to a designated agent, and an business hours. (TTY users may call the ‘‘Agent’s Acknowledgement’’ to inform Federal relay service toll-free at 800– the agent about her duties and liabilities POSTAL SERVICE 877–8339 and ask to be connected to with respect to handling the principal’s 202–326–4040.) affairs. Product Change—Priority Mail Express FOR FURTHER INFORMATION CONTACT: PBGC believes these revisions provide and Priority Mail Negotiated Service Stephanie Cibinic (cibinc.stephanie@ greater flexibility and greater Agreement protections against fraud for customers pbgc.gov), Deputy Assistant General TM using the Form 715. Customers are not AGENCY: Postal Service . Counsel, Regulatory Affairs Division, ACTION: Notice. Office of the General Counsel, Pension required to use this form and can use Benefit Guaranty Corporation, 1200 K other DPOAs or NDPOAs that comply SUMMARY: The Postal Service gives Street NW, Washington, DC 20005– with applicable state laws. notice of filing a request with the Postal The existing collection of information 4026, 202–326–4400, extension 6352. Regulatory Commission to add a was approved under OMB control TTY users may call the Federal relay domestic shipping services contract to number 1212–0055 (expires March 31, service toll-free at 800–877–8339 and the list of Negotiated Service 2019). PBGC intends to request that ask to be connected to 202–326–4400. Agreements in the Mail Classification OMB extend its approval (with Schedule’s Competitive Products List. SUPPLEMENTARY INFORMATION: This modifications) for three years. An DATES: Date of required notice: May 16, information collection is needed to pay agency may not conduct or sponsor, and 2018. participants and beneficiaries who may a person is not required to respond to, be entitled to pension benefits from a collection of information unless it FOR FURTHER INFORMATION CONTACT: plans that have terminated. It consists of displays a currently valid OMB control Elizabeth Reed, 202–268–3179. information participants and SUPPLEMENTARY INFORMATION: The number. ® beneficiaries are asked to provide in PBGC estimates that it will receive United States Postal Service hereby connection with an application for 72,010 benefit application or gives notice that, pursuant to 39 U.S.C. benefits. In addition, in some instances, information forms annually. The total 3642 and 3632(b)(3), on May 11, 2018, PBGC requests individuals to provide annual burden associated with this it filed with the Postal Regulatory identifying information so that it may collection of information is estimated to Commission a USPS Request to Add determine whether the individuals may be 56,746 hours (approximately one Priority Mail Express & Priority Mail be entitled to benefits. All requested hour for benefit applications and 30 Contract 65 to Competitive Product List. information is needed so that PBGC may minutes for information forms) and an Documents are available at determine benefit entitlements and estimated $56,711, which is the total www.prc.gov, Docket Nos. MC2018–151, make appropriate payments. average maximum cost of notary CP2018–217. This information collection includes services for spousal consents on benefit Elizabeth Reed, My Pension Benefit Account (MyPBA), applications and for the Form 715. an application on PBGC’s website, Attorney, Corporate and Postal Business Law. PBGC estimates that from the above [FR Doc. 2018–10467 Filed 5–15–18; 8:45 am] http://www.pbgc.gov, through which totals, 710 Form 715s will be filed BILLING CODE 7710–12–P plan participants and beneficiaries may annually at approximately 355 hours conduct electronic transactions with and $2,485. PBGC, including applying for pension PBGC is soliciting public comments POSTAL SERVICE benefits, designating a beneficiary, to— electing monthly payments, electing to • Evaluate whether the collection of Product Change—Priority Mail withhold income tax from periodic information is necessary for the proper Express, Priority Mail, & First-Class payments, changing contact performance of the functions of the Package Service Negotiated Service information, and applying for electronic agency, including whether the Agreement direct deposit. information will have practical utility; PBGC is proposing to revise one form • Evaluate the accuracy of the AGENCY: Postal ServiceTM. in this collection, the Power of Attorney agency’s estimate of the burden of the ACTION: Notice. Form (Form 715). The proposed revision collection of information, including the SUMMARY: The Postal Service gives would include: validity of the methodology and notice of filing a request with the Postal • Features previously unavailable— assumptions used; granting a durable power of attorney • Enhance the quality, utility, and Regulatory Commission to add a (DPOA) in addition to a nondurable clarity of the information to be domestic shipping services contract to power of attorney (NDPOA), and collected; and the list of Negotiated Service allowing a principal to name up to three • Minimize the burden of the Agreements in the Mail Classification agents to act on her behalf with PBGC collection of information on those who Schedule’s Competitive Products List. (and to designate whether the agents are to respond, including the use of DATES: Date of required notice: May 16, have independent or joint authority), appropriate automated, electronic, 2018. whereas the current form only has room mechanical, or other technological FOR FURTHER INFORMATION CONTACT: for one agent to be named; collection techniques or other forms of Elizabeth Reed, 202–268–3179. • Features that would protect the information technology, e.g., permitting SUPPLEMENTARY INFORMATION: The principal—heightened requirements for electronic submission of responses. United States Postal Service® hereby

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gives notice that, pursuant to 39 U.S.C. Valuation. The text and tables which grants approval of the proposed rule 3642 and 3632(b)(3), on May 11, 2018, constitute the Valuation will have been change. it filed with the Postal Regulatory prepared in draft form for review by the II. Description of the Proposed Rule Commission a USPS Request to Add Committee. It is expected that this will Change Priority Mail Express, Priority Mail, & be the last meeting of the Committee First-Class Package Service Contract 36 before publication of the Valuation. The Exchange proposes to amend the to Competitive Product List. Documents The meeting will be open to the market maker obligations and quoting are available at www.prc.gov, Docket public. Persons wishing to submit requirements for an ‘‘electronic ROT,’’ Nos. MC2018–153, CP2018–219. written statements or make oral which would be defined to include an presentations should address their SQT,5 RSQT,6 Directed SQT, Directed Elizabeth Reed, communications or notices to the RRB RSQT,7 and Specialist (including Attorney, Corporate and Postal Business Law. Actuarial Advisory Committee, c/o Remote Specialist) 8 who enters [FR Doc. 2018–10469 Filed 5–15–18; 8:45 am] Chief Actuary, U.S. Railroad Retirement electronic quotations into the BILLING CODE 7710–12–P Board, 844 North Rush Street, Chicago, Exchange’s System,9 and move these Illinois 60611–2092. modified provisions to new Phlx Rule 1081.10 The Exchange notes that non- POSTAL SERVICE For the Board. SQT ROTs 11 would not be subject to the Dated: May 14, 2018. proposed quoting requirements Product Change—Priority Mail and Martha Rico-Parra, First-Class Package Service Secretary to the Board. 5 An ‘‘ROT’’ is a regular member of the Exchange Negotiated Service Agreement [FR Doc. 2018–10541 Filed 5–14–18; 4:15 pm] located on the trading floor who has received permission from the Exchange to trade in options AGENCY: Postal ServiceTM. BILLING CODE 7905–01–P for his own account. See Phlx Rule 1014(b)(i). A ACTION: Notice. ‘‘Streaming Quote Trader’’ or ‘‘SQT’’ is an ROT who has received permission from the Exchange to SUMMARY: The Postal Service gives SECURITIES AND EXCHANGE generate and submit option quotations electronically in options to which such SQT is notice of filing a request with the Postal COMMISSION assigned. An SQT may only submit such quotations Regulatory Commission to add a [Release No. 34–83209; File No. SR–Phlx– while such SQT is physically present on the floor domestic shipping services contract to of the Exchange. An SQT may only trade in a 2018–22] the list of Negotiated Service market making capacity in classes of options in which the SQT is assigned. See Phlx Rule Agreements in the Mail Classification Self-Regulatory Organizations; Nasdaq 1014(b)(ii)(A). Schedule’s Competitive Products List. PHLX LLC; Order Granting Approval of 6 A ‘‘Remote Streaming Quote Trader’’ or ‘‘RSQT’’ DATES: Date of required notice: May 16, Proposed Rule Change To Create a is an ROT that is a member affiliated with a 2018. New Rule 1081, To Amend Electronic ‘‘Remote Streaming Quote Trader Organization’’ or ‘‘RSQTO’’ with no physical trading floor presence FOR FURTHER INFORMATION CONTACT: Market Maker Obligations and Quoting who has received permission from the Exchange to Elizabeth Reed, 202–268–3179. Requirements for Electronic ROTs, generate and submit option quotations SUPPLEMENTARY INFORMATION: The Which Will Be Defined To Include electronically in options to which such RSQT has ® SQTs, RSQTs, Directed SQTs, Directed been assigned. See Phlx Rule 1014(b)(ii)(B). See also United States Postal Service hereby Phlx Rule 507(a). gives notice that, pursuant to 39 U.S.C. RSQTs, Specialists, and Remote 7 A ‘‘Directed SQT’’ or ‘‘Directed RSQT’’ is an 3642 and 3632(b)(3), on May 11, 2018, Specialists SQT or RSQT that receives a Directed Order. A it filed with the Postal Regulatory ‘‘Directed Order’’ is any order (other than a stop or May 10, 2018. stop-limit order as defined in Phlx Rule 1066) to Commission a USPS Request to Add buy or sell which has been directed to a particular Priority Mail & First-Class Package I. Introduction Specialist, RSQT, or SQT by an Order Flow Service Contract 80 to Competitive On March 20, 2018, Nasdaq PHLX Provider. An ‘‘Order Flow Provider’’ is any member or member organization that submits, as agent, Product List. Documents are available at LLC (‘‘Phlx’’ or the ‘‘Exchange’’) filed www.prc.gov, Docket Nos. MC2018–152, orders to the Exchange. See Phlx Rule 1068(a)(i). with the Securities and Exchange 8 A ‘‘Specialist’’ is an Exchange member who is CP2018–218. Commission (‘‘Commission’’), pursuant registered as an options specialist pursuant to Phlx Elizabeth Reed, to Section 19(b)(1) of the Securities Rule 501 and Phlx Rule 1020(a). A ‘‘Remote 1 Specialist’’ is an options specialist that does not Attorney, Corporate and Postal Business Law. Exchange Act of 1934 (‘‘Act’’) and Rule have a physical presence on an Exchange floor. See 2 [FR Doc. 2018–10468 Filed 5–15–18; 8:45 am] 19b–4 thereunder, a proposed rule Phlx Rule 1020(a)(i) and (ii). change to amend the market maker 9 The ‘‘System’’ is the automated system for order BILLING CODE 7710–12–P obligations and quoting requirements execution and trade reporting owned and operated for an SQT, RSQT, Directed SQT, by the Exchange which comprises: (A) An order execution service that enables members to Directed RSQT, and Specialist RAILROAD RETIREMENT BOARD automatically execute transactions in ‘‘System (including Remote Specialist) who Securities’’ (defined as all options that are currently Sunshine Act: Notice of Public Meeting enters electronic quotations into the trading on the System); and provides members with Exchange’s System.3 The proposed rule sufficient monitoring and updating capability to participate in an automated execution environment; Notice is hereby given in accordance change was published for comment in (B) a trade reporting service that submits ‘‘locked- with Public Law 92–463 that the the Federal Register on April 5, 2018.4 in’’ trades for clearing to a registered clearing Actuarial Advisory Committee will hold The Commission received no comments agency for clearance and settlement; transmits last- a meeting on June 5, 2018, at 10:00 a.m. on the proposed rule change. This order sale reports of transactions automatically to the Options Price Reporting Authority for at the office of the Chief Actuary of the dissemination to the public and industry; and U. S. Railroad Retirement Board, 844 1 15 U.S.C. 78s(b)(1). provides participants with monitoring and risk North Rush Street, Chicago, Illinois, on 2 17 CFR 240.19b–4. management capabilities to facilitate participation the conduct of the 27th Actuarial 3 See infra notes 5–9 for definitions of SQT, in a ‘‘locked-in’’ trading environment; and (C) the Valuation of the Railroad Retirement RSQT, Directed SQT, Directed RSQT, Specialist, data feeds described in Phlx Rule 1070. See Phlx Remote Specialist, and System. Rule 1000(b)(45) and (46). System. The agenda for this meeting 4 See Securities Exchange Act Release No. 82975 10 See proposed Phlx Rule 1081. will include a discussion of the results (March 30, 2018), 83 FR 14690 (April 5, 2018) 11 A non-SQT ROT is an ROT who is neither an and presentation of the 27th Actuarial (‘‘Notice’’). SQT nor an RSQT. See Phlx Rule 1014(b)(ii)(C).

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described herein; instead, they are System in all options in which the The proposed rules would state subject to quarterly trading electronic ROT is registered to trade; (v) explicitly that an electronic ROT’s bid requirements as specified in Phlx Rule update quotations in response to and offer for a series of options contracts 1014, Commentary .01.12 changed market conditions in all would need to be accompanied by the options in which the electronic ROT is number of contracts at that price that A. Market Maker Obligations registered to trade; (vi) maintain active the electronic ROT is willing to buy or The Exchange proposes first to amend markets in all options in which the sell. Similar to under current rules, the the generalized description of the electronic ROT is registered; and (vii) best bid or best offer submitted by an market making obligations of an honor all orders attributed to the electronic ROT would be required to electronic ROT on the Exchange. Today, electronic ROT that the System routes to have a size of not less than the the Exchange provides that transactions away markets pursuant to Phlx Rule minimum number of contracts of a Specialist and an ROT should 1080(m).16 determined by the Exchange on a class- constitute a course of dealings The proposed rules provide further by-class basis, which minimum will be reasonably calculated to contribute to that, if Phlx Regulation found any at least one contract.20 The new rule the maintenance of a fair and orderly substantial or continued failure to would also state that an electronic ROT market, and that those members should engage in a course of dealings as that enters a bid in a registered option not enter into transactions or make bids described above, the electronic ROT series would be required to enter an or offers that are inconsistent with such would be subject to disciplinary action offer and vice versa. The quotations 13 a course of dealings. In the Exchange’s or suspension or revocation of would need to meet the legal quote proposal, new Phlx Rule 1081 would registration in one or more of the width requirements in Phlx Rule specify that, in registering as an securities in which the electronic ROT 1014(c)(i)(A)(1) and (2).21 electronic ROT, a member organization is registered. The proposed rule With respect to the specific quoting would be committing to various stipulates that nothing in the rule would requirements, currently, the Exchange obligations. Transactions of an limit any other power of the Board requires an SQT and an RSQT to quote electronic ROT in its market making under the rules, or procedures of the two-sided markets in not less than 60% 14 capacity would be required to Exchange, with respect to the of the series in which such SQT or constitute a course of dealings registration of an ROT or any violation RSQT is assigned. To satisfy these 17 reasonably calculated to contribute to by an ROT pursuant to the rule. The requirements when quoting a series, an the maintenance of a fair and orderly Exchange states that the proposed SQT or RSQT must quote such series market, and those member organizations obligations are similar to those imposed 90% of the trading day (as a percentage would not be permitted to make bids or on market makers by another options of the total number of minutes in such 18 offers or enter into transactions that are exchange. trading day) or such higher percentage inconsistent with such course of B. Quoting Requirements as the Exchange may announce in dealings. Electronic ROTs would be advance. These obligations apply prohibited from effecting purchases or The Exchange further proposes to amend the quoting requirements for collectively to all appointed issues, sales except in a reasonable and orderly rather than on an issue-by-issue basis.22 15 electronic ROTs. Electronic ROTs would manner. Under the proposal, SQTs and RSQTs In addition, ordinarily during trading be required to enter bids and offers for the options to which they are registered, associated with the same member hours, an electronic ROT would be organization would be collectively required to: (i) Maintain a two-sided except in an assigned options series listed intra-day on the Exchange. On a required to provide two-sided market in those options in which the quotations in 60% of the cumulative electronic ROT is registered to trade, in daily basis, an electronic ROT would be required to make markets consistent number of seconds, or such higher a manner that enhances the depth, percentage as the Exchange may liquidity, and competitiveness of the with the applicable quoting requirements, as described further announce in advance, for which that market; (ii) engage, to a reasonable member organization’s assigned option degree under the existing below. A member organization would be series are open for trading.23 circumstances, in dealings for its own required to meet each quoting In addition, currently, the Exchange account when there exists, or it is requirement separately depending on requires a Specialist, including an RSQT reasonably anticipating that there will the role that the member organization functioning as a Remote Specialist, to exist, a lack of price continuity, a plays with respect to different options 19 quote two-sided markets in the lesser of temporary disparity between the supply series. 99% of the series or 100% of the series of (or demand for) a particular option 16 minus one call-put pair in each option contract, or a temporary distortion of See proposed Phlx Rule 1081(a). 17 in which such Specialist is assigned. To price relationships between option See proposed Phlx Rule 1081(b). The Exchange explains that it added this rule text to make clear satisfy these requirements when quoting contracts of the same class; (iii) compete that the obligations noted within this proposed rule a series, a Specialist must quote such with other electronic ROTs in all are not an exclusive list, because an electronic ROT series 90% of the trading day (as a options in all capacities in which the may be found to have violated other by-laws and rules of the Exchange that are separate and apart percentage of the total number of electronic ROT is registered to trade; (iv) from these obligations. See Notice, supra note 4, at minutes in such trading day) or such make markets that will be honored for 14691 n.9. 18 the number of contracts entered into the See Notice, supra note 4, at 14690–91 & n.8. 20 See also BX Rules at Chapter VII, Section 5. See proposed Phlx Rule 1081(c)(i). See also Phlx Rule 1014(b)(ii)(D)(3) (specifying the 19 See proposed Phlx Rule 1081(c). Specifically, 12 See Notice, supra note 4, at 14690. minimum contract size for SQTs, RSQTs, and the proposed rule states that an SQT and RSQT who 13 Specialists), the current equivalent provision that is See Phlx Rule 1014(a). is also the Specialist would be held to the quoting 14 being replaced. According to the Exchange, orders, which requirements for Specialists in options series in 21 electronic ROTs may enter pursuant to Phlx Rule which the Specialist is assigned and would be held See proposed Phlx Rule 1081(c)(ii). 1080(b)(i)(B), are not considered market making to the quoting requirements for SQTs and RSQTs 22 See Phlx Rule 1014(b)(ii)(D)(1). activity for purposes of fulfilling the proposed in all other options series where assigned. An SQT 23 See proposed Phlx Rule 1081(c)(ii)(A). See quoting requirements or other obligations. See or RSQT who receives a Directed Order would be infra, notes 35–36 and accompanying text, Notice, supra note 4, at 14690 n.5. held to the quoting requirements for Directed SQTs regarding the method by which the percentage 15 See proposed Phlx Rule 1081(a). and Directed RSQTs. See id. would be calculated.

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higher percentage as the Exchange may directed in all assigned options once the Quoting would not be required in every announce in advance. These obligations member organization receives a Directed assigned options series and compliance apply collectively to all appointed Order in any option in which they are with this requirement would be issues, rather than on an issue-by-issue assigned and would be considered a determined by reviewing the aggregate basis.24 Under the proposal, Specialists Directed SQT or Directed RSQT until of quoting in assigned options series for (including Remote Specialists) such time as the member organization the member organization.36 Similar to associated with the same member notifies the Exchange that they are no current requirements, the Exchange organization would be collectively longer directed.30 The Exchange notes would consider exceptions to the required to provide two-sided that the Directed SQTs and Directed quoting requirements based on quotations in 90% of the cumulative RSQTs’ heightened quoting demonstrated legal or regulatory number of seconds, or such higher requirements as compared to SQTs and requirements or other mitigating percentage as the Exchange may RSQTs allow for Directed SQTs and circumstances. The Exchange would announce in advance, for which that Directed RSQTs to receive certain determine compliance with quoting member organization’s assigned options participation rights.31 requirements on a monthly basis. series are open for trading.25 The The Exchange states that the proposal However, this monthly compliance Exchange states that the Specialists’ better accommodates the occasional evaluation would not relieve a member heightened quoting requirements as issues that may arise in a particular organization of the obligation to provide compared to SQTs and RSQTs allow for series, arguing that the existing quoting continuous two-sided quotes on a daily Specialists to receive certain requirements may at times discourage basis or prohibit the Exchange from participation rights.26 liquidity in particular options series taking disciplinary action against a Further, currently, the Exchange because an electronic ROT is forced to member organization for failure to meet requires a Directed SQT and a Directed focus on a momentary lapse, rather than the quoting requirements each trading RSQT to quote two-sided markets in the using the appropriate resources to focus day.37 If a technical failure or limitation lesser of 99% of the series listed on the on the options series that need and of a System of the Exchange prevents a Exchange or 100% of the series listed on consume additional liquidity.32 member organization from maintaining, the Exchange minus one call-put pair,27 For SQTs, RSQTs, Directed SQTs, and or prevents a member organization from in each case in at least 60% of the Directed RSQTs, the Exchange would communicating to the Exchange timely options in which such Directed SQT or continue to exclude from the above and accurate quotes, the duration of Directed SQT is assigned.28 To satisfy quoting requirements any Quarterly such failure or limitation would not be these requirements when quoting a Option Series, Adjusted Option Series, included in any calculation of quoting series, a Directed SQT or Directed RSQT and any option series until the time to requirements with respect to the must quote such series 90% of the expiration for such series is less than affected quotes.38 trading day (as a percentage of the total nine months.33 Specialists would The Exchange states that the proposed number of minutes in such trading day) continue to be subject to the above quoting requirements as described or such higher percentage as the quoting requirements for all assigned above are similar to those of another Exchange may announce in advance. option series, including Quarterly options exchange.39 These obligations apply collectively to Option Series, Adjusted Option Series, and any option series with an expiration III. Discussion and Commission all appointed issues, rather than on an Findings issue-by-issue basis.29 Under the of nine months or greater.34 proposal, Directed SQTs and Directed The Exchange would calculate After careful review, the Commission RSQTs associated with the same compliance with the above quoting finds that the proposed rule change is member organization would be requirements by (i) taking the total consistent with the requirements of the collectively required to provide two- number of seconds the member Act and the rules and regulations organization disseminates quotes in thereunder applicable to a national sided quotations in 90% of the 35 40 cumulative number of seconds, or such each assigned option series; and (ii) securities exchange. In particular, the higher percentage as the Exchange may dividing that time by the eligible total Commission finds that the proposed announce in advance, for which that number of seconds each assigned option rule change is consistent with Section 6(b)(5) of the Act,41 which requires, member organization’s assigned options series is open for trading that day. among other things, that the rules of a series are open for trading. A member 30 See proposed Phlx Rule 1081(c)(ii)(C). See national securities exchange be organization would be considered infra, notes 35–36 and accompanying text, designed to prevent fraudulent and regarding the method by which the percentage manipulative acts and practices, to 24 See Phlx Rule 1014(b)(ii)(D)(2). would be calculated. 25 See proposed Phlx Rule 1081(c)(ii)(B). See 31 See Notice, supra note 4, at 14693. See also promote just and equitable principles of infra, notes 35–36 and accompanying text, Phlx Rule 1014(g)(viii)(B). trade, to foster cooperation and regarding the method by which the percentage 32 See Notice, supra note 4, at 14695. would be calculated. 33 See proposed Phlx Rule 1081(c)(ii)(A) and (C). 36 See proposed Phlx Rule 1081(c)(ii)(D). See 26 See Notice, supra note 4, at 14693. See also See also Phlx Rule 1014(b)(ii)(D)(4), the current Notice, supra note 4, at 14694, for an example of Phlx Rules 1014(g)(ii) and 1014(g)(vii)(B)(1)(c). equivalent provision that is being replaced. An how the Exchange would calculate compliance with 27 ‘‘Call-put pair’’ refers to one call and one put ‘‘Adjusted Option Series’’ would be defined as an the quoting requirements. that cover the same underlying instrument and have option series wherein one option contract in the 37 See proposed Phlx Rule 1081(c)(iii). See also the same expiration date and exercise price. See series represents the delivery of other than 100 Phlx Rule 1014(b)(ii)(D)(1) and (2), the current Phlx Rule 1014(b)(ii)(D)(6). shares of underlying stock or Exchange-Traded equivalent provision that is being replaced. 28 See Phlx Rule 1014(b)(ii)(D)(1). Whenever a Fund Shares. See proposed Phlx Rule 38 See proposed Phlx Rule 1081(c)(iv). See also Directed SQT or Directed RSQT enters a quotation 1081(c)(ii)(A)(i). See also Phlx Rule Phlx Rule 1014(b)(ii)(D)(5), the current equivalent in an option in which such Directed SQT or 1014(b)(ii)(D)(4). provision that is being replaced. Directed RSQT is assigned, such Directed SQT or 34 See proposed Phlx Rule 1081(c)(ii)(B). 39 See Notice, supra note 4, at 14692–93. See also Directed RSQT must maintain until the close of that 35 With respect to SQTs, RSQTs, Directed SQTs, BX Rules at Chapter VII, Sections 6, 14, and 15. trading day quotations for the lesser of 99% of the and Directed RSQTs, such calculation would 40 In approving this proposed rule change, the series of the option listed on the Exchange or 100% exclude Quarterly Option Series, Adjusted Option Commission has considered the proposed rule’s of the series of the option listed on the Exchange Series, and any option series with an expiration of impact on efficiency, competition, and capital minus one call-put pair. See id. nine months or greater. See proposed Phlx Rule formation. See 15 U.S.C. 78c(f). 29 See id. 1081(c)(ii)(D). 41 15 U.S.C. 78f(b)(5).

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coordination with persons engaged in disciplinary action against an electronic SECURITIES AND EXCHANGE facilitating transactions in securities, to ROT for failing to meet the continuous COMMISSION remove impediments to and perfect the quoting requirements each trading day. [Investment Company Act Release No. mechanism of a free and open market The Commission finds that the 33095; File No. 812–14819] and a national market system, and, in proposed changes to the quoting general, to protect investors and the requirements of electronic ROTs are Franklin Alternative Strategies Funds, public interest. et al. The Exchange proposes to add consistent with the Act. The Exchange specificity regarding the general believes that the revised requirements May 10, 2018. description in its rules regarding market will enable electronic ROTs to focus on AGENCY: Securities and Exchange maker obligations of an electronic ROT. the options series that need and Commission (‘‘Commission’’). The Commission finds that the changes consume more liquidity than others. To ACTION: Notice. it is making in this regard are consistent the extent this is true, the proposal will with the Act and notes that, as the enhance trading opportunities on the Notice of an application for an order Exchange maintains, the changes are Exchange. Moreover, the Commission pursuant to: (a) Section 6(c) of the consistent with the rules of another believes that, although the proposal Investment Company Act of 1940 options exchange.42 would reduce the quoting requirements (‘‘Act’’) granting an exemption from The Exchange proposes to reduce the for the various electronic ROTs from sections 18(f) and 21(b) of the Act; (b) specific quoting requirements for their current levels, the proposed section 12(d)(1)(J) of the Act granting an exemption from section 12(d)(1) of the electronic ROTs of the various types. changes are consistent, as the Exchange Act; (c) sections 6(c) and 17(b) of the SQTs and RSQTs associated with the argues, with the market maker quoting Act granting an exemption from sections same member organization would be requirements in place on other collectively required to provide two- 17(a)(1), 17(a)(2) and 17(a)(3) of the Act; markets.43 The Commission further sided quotations in 60% of the and (d) section 17(d) of the Act and rule notes that, notwithstanding the cumulative number of seconds for 17d–1 under the Act to permit certain which that member organization’s proposed changes to the quoting joint arrangements and transactions. assigned option series are open for requirements for Specialists, Directed Applicants request an order that would trading. Specialists (including Remote SQTs, and Directed RSQTs, the revised supersede a prior order and that would Specialists) associated with the same quoting requirements continue to reflect permit certain registered management member organization would be meaningful market making obligations. investment companies to participate in collectively required to provide two- Additionally, the proposed rules reflect a joint lending and borrowing facility.1 sided quotations in 90% of the a balance of rights and obligations APPLICANTS: Franklin Alternative cumulative number of seconds for consistent with the balance reflected in Strategies Funds, Franklin California which that member organization’s the rules of other exchanges for market Tax-Free Income Fund, Franklin assigned option series are open for participants fulfilling a similar role.44 In California Tax-Free Trust, Franklin trading. Similarly, Directed SQTs and addition, the Commission believes that Custodian Funds, Franklin ETF Trust, Directed RSQTs associated with the the proposed changes to provide Franklin Federal Tax-Free Income Fund, same member organization would be additional detail about how the Franklin Floating Rate Master Trust, collectively required to provide two- Exchange will apply these quoting Franklin Fund Allocator Series, sided quotations in 90% of the requirements adds further clarity to the Franklin Global Trust, Franklin Gold cumulative number of seconds for rules. and Precious Metals Fund, Franklin which that member organization’s High Income Trust, Franklin Investors assigned option series are open for IV. Conclusion Securities Trust, Franklin Managed trading. The Exchange would be able to Trust, Franklin U.S. Government Money It is therefore ordered, pursuant to designate a higher percentage for any of Fund, Franklin Municipal Securities Section 19(b)(2) of the Act,45 that the these quoting requirements by Trust, Franklin Mutual Series Funds, proposed rule change (SR–Phlx–2018– announcing such percentage in advance. Franklin New York Tax-Free Income These quoting requirements would 22), be, and hereby is, approved. Fund, Franklin New York Tax-Free apply to all of an electronic ROT’s For the Commission, by the Division of Trust, Franklin Real Estate Securities assigned options on a daily basis. These Trading and Markets, pursuant to delegated Trust, Franklin Strategic Mortgage quoting requirements would be authority.46 Portfolio, Franklin Strategic Series, reviewed on a monthly basis, and would Eduardo A. Aleman, Franklin Tax-Free Trust, Franklin allow the Exchange to review the Templeton ETF Trust, Franklin electronic ROT’s daily compliance in Assistant Secretary. [FR Doc. 2018–10379 Filed 5–15–18; 8:45 am] Templeton Global Trust, Franklin the aggregate and determine the Templeton International Trust, Franklin appropriate disciplinary action for BILLING CODE 8011–01–P Templeton Money Fund Trust, Franklin single or multiple failures to comply Templeton Variable Insurance Products with the continuous quoting Trust, Franklin Value Investors Trust, requirement during the month period. Institutional Fiduciary Trust, Templeton The Commission notes that the China World Fund, Templeton proposed rules provide that determining 43 Developing Markets Trust, Templeton compliance with the continuous quoting See, e.g, BX Rules, Chapter VII, Sections 6, 14, and 15; NYSE American Rules 925.1NY and Funds, Templeton Global Investment requirements on a monthly basis would 964.1NY; NYSE Arca Rules 6.37B–O and 6.88–O. Trust, Templeton Global Opportunities not relieve the electronic ROT of the 44 See, e.g., Nasdaq GEMX Rules 713 and 804; Trust, Templeton Global Smaller obligation to provide continuous two- Nasdaq ISE Rules 713 and 804; Nasdaq MRX Rules Companies Fund, Templeton Growth sided quotes on a daily basis, nor would 713 and 804. See also supra notes 26 and 31 and accompanying text. it prohibit the Exchange from taking 1 Franklin Gold Fund, et al., Investment Company 45 Id. Act Release Nos. 24016 (Sept. 16, 1999) and 24080 42 See BX Rules, Chapter VII, Section 5. 46 17 CFR 200.30–3(a)(12). (Oct. 13, 1999).

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Fund, Inc., Templeton Income Trust, hearing on the matter, the reason for the otherwise could obtain from investing Templeton Institutional Funds, and The request, and the issues contested. their cash in repurchase agreements or Money Market Portfolios, each an Persons who wish to be notified of a certain other short term money market investment company organized as a hearing may request notification by instruments. Thus, applicants assert that Delaware statutory trust or a Maryland writing to the Commission’s Secretary. the facility would benefit both corporation and registered under the ADDRESSES: Secretary, U.S. Securities borrowing and lending Funds. Act as an open-end management and Exchange Commission, 100 F Street 3. Applicants agree that any order investment company, on behalf of all NE, Washington, DC 20549–1090; granting the requested relief will be existing series 2 (the ‘‘Open-End Applicants: Craig S. Tyle, Esq., Franklin subject to the terms and conditions Funds’’); Franklin Limited Duration Templeton Investments, One Franklin stated in the application. Among others, Income Trust, Franklin Universal Trust, Parkway, San Mateo, CA 94403 and each Adviser, through a designated Templeton Dragon Fund, Inc., Bruce G. Leto, Esq., Stradley Ronon committee, would administer the Templeton Emerging Markets Fund, Stevens & Young, LLP, 2600 One facility as a disinterested fiduciary as Templeton Emerging Markets Income Commerce Square, Philadelphia, PA part of its duties under the investment Fund, and Templeton Global Income 19103. advisory and administrative agreements Fund, each organized as a Delaware FOR FURTHER INFORMATION CONTACT: Jean with the Funds and would receive no statutory trust or a Massachusetts E. Minarick, Senior Counsel, at (202) additional fee as compensation for its business trust and registered under the 551–6811, or Kaitlin C. Bottock, Branch services in connection with the Act as a closed-end investment Chief, at (202) 551–6821 (Division of administration of the facility. The management investment company (the Investment Management, Chief facility would be subject to oversight ‘‘Closed-End Funds,’’ 3 and together Counsel’s Office). and certain approvals by the Funds’ with the Open-End Funds, the SUPPLEMENTARY INFORMATION: The Board, including, among others, ‘‘Funds’’); Franklin Advisers, Inc., a approval of the interest rate formula and California corporation; Franklin following is a summary of the application. The complete application of the method for allocating loans across Templeton Investment Management Funds, as well as review of the process Limited, a United Kingdom company; may be obtained via the Commission’s website by searching for the file in place to evaluate the liquidity K2/D&S Management Co., L.L.C., FASA implications for the Funds. A Fund’s LLC, Franklin Templeton Institutional, number, or an applicant using the Company name box, at http:// aggregate outstanding interfund loans LLC, Franklin Advisory Services, LLC, will not exceed 15% of its net assets, Franklin Mutual Advisers, LLC, and www.sec.gov/search/search.htm or by calling (202) 551–8090. and the Fund’s loans to any one Fund Templeton Investment Counsel, LLC, will not exceed 5% of the lending each a Delaware limited liability Summary of the Application Fund’s net assets.6 company; Templeton Asset 1. Applicants request an order that 4. Applicants assert that the facility Management Ltd., a Singapore public would permit the applicants to does not raise the concerns underlying company, and Templeton Global participate in an interfund lending section 12(d)(1) of the Act given that the Advisors Limited, a Bahamas company; facility where each Fund could lend Funds are part of the same group of each registered as an investment adviser money directly to and borrow money investment companies and there will be under the Investment Advisers Act of directly from other Funds to cover no duplicative costs or fees to the 1940 (each an ‘‘Adviser’’). unanticipated cash shortfalls, such as Funds.7 Applicants also assert that the FILING DATES: The application was filed unanticipated redemptions or trade proposed transactions do not raise the on September 14, 2017, and amended fails.4 The Funds will not borrow under concerns underlying sections 17(a)(1), on March 9, 2018. the facility for leverage purposes and 17(a)(3), 17(d) and 21(b) of the Act as HEARING OR NOTIFICATION OF HEARING: An the loans’ duration will be no more than the Funds would not engage in lending order granting the requested relief will 7 days.5 transactions that unfairly benefit be issued unless the Commission orders 2. Applicants anticipate that the insiders or are detrimental to the Funds. a hearing. Interested persons may proposed facility would provide a Applicants state that the facility will request a hearing by writing to the borrowing Fund with a source of offer both reduced borrowing costs and Commission’s Secretary and serving liquidity at a rate lower than the bank enhanced returns on loaned funds to all applicants with a copy of the request, borrowing rate at times when the cash participating Funds and each Fund personally or by mail. Hearing requests position of the Fund is insufficient to would have an equal opportunity to should be received by the Commission meet temporary cash requirements. In borrow and lend on equal terms based by 5:30 p.m. on June 4, 2018, and addition, Funds making short-term cash on an interest rate formula that is should be accompanied by proof of loans directly to other Funds would objective and verifiable. With respect to service on the applicants, in the form of earn interest at a rate higher than they the relief from section 17(a)(2) of the an affidavit, or, for lawyers, a certificate Act, applicants note that any collateral of service. Pursuant to Rule 0–5 under 4 Applicants request that the order apply to the pledged to secure an interfund loan the Act, hearing requests should state applicants and to any other registered open-end or would be subject to the same conditions the nature of the writer’s interest, any closed-end management investment company or series thereof (each a ‘‘Fund’’ and collectively, the imposed by any other lender to a Fund facts bearing upon the desirability of a ‘‘Funds’’) for which the Advisers or any successors- that imposes conditions on the quality in-interest thereto or an investment adviser of or access to collateral for a borrowing 2 Certain Funds (as defined below) are, and future controlling, controlled by, or under common (if the lender is another Fund) or the Funds may be, money market funds that comply control with any Adviser or any successor-in- with rule 2a–7 of the Act (each a ‘‘Money Market interest thereto serves as investment adviser (each Fund’’). Money Market Funds will not participate such investment adviser, an ‘‘Adviser’’). For 6 Under certain circumstances, a borrowing Fund as borrowers under the interfund lending facility purposes of the requested order, ‘‘successor-in- will be required to pledge collateral to secure the because they do not need to borrow cash to meet interest’’ is limited to any entity that results from loan. redemptions. a reorganization into another jurisdiction or a 7 Applicants state that the obligation to repay an 3 The requested order will not permit Closed-End change in the type of a business organization. interfund loan could be deemed to constitute a Funds to participate as borrowers in the interfund 5 Any Fund, however, will be able to call a loan security for the purposes of sections 17(a)(1) and lending facility. on one business day’s notice. 12(d)(1) of the Act.

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same or better conditions (in any other SECURITIES AND EXCHANGE the most significant parts of such circumstance).8 COMMISSION statements. 5. Applicants also believe that the limited relief from section 18(f)(1) of the [Release No. 34–83206; File No. SR– A. Self-Regulatory Organization’s CboeBZX–2018–033] Act that is necessary to implement the Statement of the Purpose of, and facility (because the lending Funds are Statutory Basis for, the Proposed Rule Self-Regulatory Organizations; Cboe Change not banks) is appropriate in light of the BZX Exchange, Inc.; Notice of Filing conditions and safeguards described in and Immediate Effectiveness of a 1. Purpose the application and because the open- Proposed Rule Change To List and The Exchange proposes to list and end Funds would remain subject to the Trade Under BZX Rule 14.11(c)(4) trade shares (‘‘Shares’’) of the Fund requirement of section 18(f)(1) that all Shares of the iShares Long-Term under BZX Rule 14.11(c)(4),5 which borrowings of the open-end Fund, National Muni Bond ETF of iShares governs the listing and trading of index including combined interfund loans and Trust fund shares based on fixed income bank borrowings, have at least 300% securities indexes.6 The Shares will be asset coverage. May 10, 2018. offered by the Trust, which was 6. Section 6(c) of the Act permits the Pursuant to Section 19(b)(1) of the established as a Delaware statutory trust Commission to exempt any persons or Securities Exchange Act of 1934 on December 16, 1999. The Trust is transactions from any provision of the 1 2 (‘‘Act’’), and Rule 19b–4 thereunder, registered with the Commission as an Act if such exemption is necessary or notice is hereby given that on May 3, open-end investment company and has appropriate in the public interest and 2018, Cboe BZX Exchange, Inc. filed a registration statement on behalf consistent with the protection of (‘‘Exchange’’ or ‘‘BZX’’) filed with the of the Fund on Form N–1A investors and the purposes fairly Securities and Exchange Commission (‘‘Registration Statement’’) with the intended by the policy and provisions of (‘‘Commission’’) the proposed rule Commission.7 the Act. Section 12(d)(1)(J) of the Act change as described in Items I and II Rule 14.11(c)(4)(B)(i)(b) requires that provides that the Commission may below, which Items have been prepared component fixed income securities that, exempt any person, security, or by the Exchange. The Exchange has in the aggregate, account for at least transaction, or any class or classes of designated this proposal as a ‘‘non- 75% of the weight of the index or persons, securities, or transactions, from controversial’’ proposed rule change portfolio shall have a minimum any provision of section 12(d)(1) if the pursuant to Section 19(b)(3)(A) of the principal amount outstanding of $100 exemption is consistent with the public Act 3 and Rule 19b–4(f)(6)(iii) million or more. The Exchange submits interest and the protection of investors. thereunder,4 which renders it effective this proposal because the Underlying Section 17(b) of the Act authorizes the upon filing with the Commission. The Commission to grant an order Commission is publishing this notice to 5 The Commission approved BZX Rule 14.11(c) in permitting a transaction otherwise solicit comments on the proposed rule Securities Exchange Act Release No. 65225 (August prohibited by section 17(a) if it finds change from interested persons. 30, 2011), 76 FR 55148 (September 6, 2011) (SR– that (a) the terms of the proposed BATS–2011–018). transaction are fair and reasonable and I. Self-Regulatory Organization’s 6 The Commission previously has approved proposed rule changes relating to listing and trading do not involve overreaching on the part Statement of the Terms of Substance of of funds based on municipal bond indexes. See of any person concerned; (b) the the Proposed Rule Change Securities Exchange Act Release Nos. 78329 (July proposed transaction is consistent with The Exchange filed a proposal to list 14, 2016), 81 FR 47217 (July 20, 2016) (SR– the policies of each registered BatsBZX–2016–01) (order approving the listing and and trade under BZX Rule 14.11(c)(4) trading of the following series of VanEck Vectors investment company involved; and (c) the shares of the iShares Long-Term ETF Trust: VanEck Vectors AMT-Free 6–8 Year the proposed transaction is consistent National Muni Bond ETF (the ‘‘Fund’’) Municipal Index ETF; VanEck Vectors AMT-Free 8– with the general purposes of the Act. of iShares Trust (the ‘‘Trust’’). 12 Year Municipal Index ETF; and VanEck Vectors Rule 17d–1(b) under the Act provides AMT-Free 12–17 Year Municipal Index ETF); 67985 The text of the proposed rule change (October 4, 2012), 77 FR 61804 (October 11, 2012) that in passing upon an application filed is available at the Exchange’s website at (SR–NYSEArca–2012–92) (order approving under the rule, the Commission will www.markets.cboe.com, at the principal proposed rule change relating to the listing and consider whether the participation of office of the Exchange, and at the trading of iShares 2018 S&P AMT-Free Municipal the registered investment company in a Series and iShares 2019 S&P AMT-Free Municipal Commission’s Public Reference Room. Series under NYSE Arca, Inc. (‘‘NYSE Arca’’) Rule joint enterprise, joint arrangement or 5.2(j)(3), Commentary .02); 72523 (July 2, 2014), 79 profit sharing plan on the basis II. Self-Regulatory Organization’s FR 39016 (July 9, 2014) (SR–NYSEArca–2014–37) proposed is consistent with the Statement of the Purpose of, and (order approving proposed rule change relating to provisions, policies and purposes of the Statutory Basis for, the Proposed Rule the listing and trading of iShares 2020 S&P AMT- Change Free Municipal Series under NYSE Arca Rule Act and the extent to which such 5.2(j)(3), Commentary .02); and 75468 (July 16, participation is on a basis different from In its filing with the Commission, the 2015), 80 FR 43500 (July 22, 2015) (SR–NYSEArca– or less advantageous than that of the Exchange included statements 2015–25) (order approving proposed rule change other participants. relating to the listing and trading of the iShares concerning the purpose of and basis for iBonds Dec 2021 AMT-Free Muni Bond ETF and For the Commission, by the Division of the proposed rule change and discussed iShares iBonds Dec 2022 AMT-Free Muni Bond Investment Management, under delegated any comments it received on the ETF under NYSE Arca Rule 5.2(j)(3), Commentary authority. proposed rule change. The text of these .02). 7 Eduardo A. Aleman, statements may be examined at the See Registration Statement on Form N–1A for the Trust, dated January 9, 2018 (File Nos. 333– Assistant Secretary. places specified in Item IV below. The 92935 and 811–09729). The descriptions of the [FR Doc. 2018–10383 Filed 5–15–18; 8:45 am] Exchange has prepared summaries, set Fund and the Shares contained herein are based, in forth in Sections A, B, and C below, of part, on information in the Registration Statement. BILLING CODE 8011–01–P The Commission has issued an order granting certain exemptive relief to the Trust under the 1 8 Applicants state that any pledge of securities to 15 U.S.C. 78s(b)(1). Investment Company Act of 1940 (15 U.S.C. 80a– secure an interfund loan could constitute a 2 17 CFR 240.19b–4. 1) (‘‘1940 Act’’) (the ‘‘Exemptive Order’’). See purchase of securities for purposes of section 3 15 U.S.C. 78s(b)(3)(A). Investment Company Act Release No. 28021 17(a)(2) of the Act. 4 17 CFR 240.19b–4(f)(6)(iii). (October 24, 2007) (File No. 812–13426).

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Index does not meet this requirement. Under normal market conditions,10 reduced. With this in mind, the The Underlying Index does, however, the Fund will invest at least 90% of its Exchange notes that the representations meet all of the other requirements of assets in the component securities of the in the Requirements for Index Rule 14.11(c)(4). Underlying Index. With respect to the Constituents for the Underlying Index remaining 10% of its assets, the Fund are identical to the representations Description of the Shares and the Fund may invest in certain futures, options made regarding the S&P National AMT- BlackRock Fund Advisors is the and swap contracts, cash and cash Free Municipal Bond Index (the equivalents, including shares of money ‘‘Comparable Index’’), which underlies a investment adviser (‘‘BFA’’ or market funds advised by BFA or its series of Index Fund Shares that were ‘‘Adviser’’) to the Fund.8 State Street affiliates, as well as in securities not previously approved for listing and Bank and Trust Company is the included in the Underlying Index, but trading by the Commission.11 In the administrator, custodian, and transfer which BFA believes will help the Fund Approval Order, the Commission agent (‘‘Administrator,’’ ‘‘Custodian,’’ track the Underlying Index. highlighted the representations that the and ‘‘Transfer Agent,’’ respectively) for Comparable Index would, on a Requirement for Index Constituents the Trust. S&P is the index provider (the continuous basis, contain at least 500 ‘‘Index Provider’’) for the Fund. Each bond in the Underlying Index component securities and that at least BlackRock Investments, LLC serves as must be denominated in U.S. dollars, 90% of the weight of the Comparable the distributor (‘‘Distributor’’) for the must be a constituent of an offering Index will be comprised of securities Trust. where the original offering amount was that have a minimum par amount of $25 at least $100 million, and must have a million and were a constituent of an S&P 15+ Year National AMT-Free minimum par amount of $25 million. To offering where the original offering Municipal Bond Index remain in the Underlying Index, bonds amount was at least $100 million. The According to the Registration must maintain a minimum par amount Exchange believes that because these Statement, the Fund will seek to track greater than or equal to $25 million as representations regarding diversification of the next rebalancing date. The the investment results of the S&P 15+ and the lack of concentration among Underlying Index primarily includes Year National AMT-Free Municipal constituent securities provides a strong municipal bonds from issuers that are Bond Index (the ‘‘Underlying Index’’), degree of protection against index state or local governments or agencies manipulation that is consistent with which measures the performance of the such that the interest on each such bond investment-grade segment of the U.S. other proposals that have been approved is exempt from U.S. federal income for listing and trading by the municipal bond market with remaining taxes and the federal alternative maturities greater than or equal to Commission. minimum tax (‘‘AMT’’). Each bond in In addition, the Exchange represents fifteen years. The Underlying Index the Underlying Index must have a rating that: (1) Except for Rule primarily includes municipal bonds of at least BBB¥ by S&P Global Ratings, 14.11(c)(4)(B)(i)(b), the Underyling [sic] from issuers that are state or local Baa3 by Moody’s Investors Service, Inc., index currently satisfies all of the governments or agencies such that the or BBB¥ by Fitch Ratings, Inc. A bond generic listing standards under Rule interest on each such bond is exempt must be rated by at least one of these 14.11(c)(4); (2) the continued listing from U.S. federal income taxes and the three rating agencies in order to qualify standards under Rule 14.11(c), as federal alternative minimum tax for the Underlying Index, and the lowest applicable to Index Fund Shares based (‘‘AMT’’). As of February 13, 2018, the rating will be used in determining if the on fixed income securities, will apply to Underlying Index included 3,637 bond is investment-grade. the shares of the Fund; and (3) the component fixed income municipal Discussion issuer of the Fund is required to comply bond securities from issuers in 45 with Rule 10A–3 12 under the Act for the different states or U.S. territories.9 The Based on the characteristics of the initial and continued listing of the most heavily weighted security in the Underlying Index and the Shares. In addition, the Exchange Underlying Index represented representations made in the represents that the Fund will comply approximately 0.32% of the total weight Requirements for Index Constituents with all other requirements applicable section above, the Exchange believes it of the Underlying Index and the to Index Fund Shares, including, but not is appropriate to allow the listing and aggregate weight of the top five most limited to, requirements relating to the trading of the Shares. The Underlying heavily weighted securities in the dissemination of key information such Index and Fund satisfy all of the generic Underlying Index represented less than as the value of the Underyling [sic] listing requirements for Index Fund 1.36% of the total weight of the Index and the Intraday Indicative Value Shares based on a fixed income index, Underlying Index. Approximately (‘‘IIV’’),13 rules governing the trading of except for the minimum principal 40.01% of the weight of the components equity securities, trading hours, trading amount outstanding requirement of in the Underlying Index had a minimum halts, surveillance, information barriers 14.11(c)(4)(B)(i)(b). A fundamental and the Information Circular, as set original principal outstanding of $100 purpose behind the minimum principal million or more. In addition, the total amount outstanding requirement is to 11 dollar amount outstanding of issues in ensure that component securities of an The Comparable Index underlies the iShares the Underlying Index was National Muni Bond ETF. See Securities Exchange index are sufficiently liquid such that Act Release No. 82295 (December 12, 2017), 82 FR approximately $239,414,133,037 and the potential for index manipulation is 60056 (December 18, 2017) (SR–NYSEArca–2017– the average dollar amount outstanding 56) (the ‘‘Approval Order’’). 12 of issues in the Underlying Index was 10 The term ‘‘normal market conditions’’ includes, 17 CFR 240.10A–3. approximately $65,827,367. but is not limited to, the absence of trading halts 13 The IIV will be widely disseminated by one or in the applicable financial markets generally; more major market data vendors at least every 15 operational issues (e.g., systems failure) causing seconds during the Exchange’s Regular Trading 8 BFA is an indirect wholly owned subsidiary of dissemination of inaccurate market information; or Hours. Currently, it is the Exchange’s BlackRock, Inc. force majeure type events such as natural or understanding that several major market data 9 Unless otherwise noted, all statistics related to manmade disaster, act of God, armed conflict, act vendors display and/or make widely available IIVs the Underlying Index presented hereafter were of terrorism, riot or labor disruption or any similar taken from the Consolidated Tape Association accurate as of February 13, 2018. intervening circumstance. (‘‘CTA’’) or other data feeds.

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forth in the Exchange rules applicable to futures, warrants, and options, such 2. Statutory Basis Index Fund Shares and prior intraday information is available Commission orders approving the directly from the applicable listing The Exchange believes that the generic listing rules applicable to the exchange. proposal is consistent with Section 6(b) listing and trading of Index Fund of the Act 15 in general and Section Shares. Surveillance 6(b)(5) of the Act 16 in particular in that it is designed to prevent fraudulent and The current value of the Underlying The Exchange represents that trading manipulative acts and practices, to Index will be widely disseminated by in the shares of the Fund will be subject promote just and equitable principles of one or more major market data vendors to the existing trading surveillances, trade, to foster cooperation and at least once per day, as required by administered by the Financial Industry coordination with persons engaged in Rule 14.11(c)(4)(C)(ii). The portfolio of Regulatory Authority (‘‘FINRA’’) on securities held by the Fund will be behalf of the Exchange, or by regulatory facilitating transactions in securities, to disclosed daily on the Fund’s website. staff of the Exchange, which are remove impediments to and perfect the Further, the Fund’s website will contain designed to detect violations of mechanism of a free and open market the Fund’s prospectus and additional Exchange rules and applicable federal and a national market system and, in data relating to net asset value (‘‘NAV’’) securities laws. The Exchange general, to protect investors and the and other applicable quantitative represents that these procedures are public interest. information. The issuer has represented adequate to properly monitor Exchange The Exchange believes that the that the NAV will be calculated daily trading of the shares of the Fund in all proposed rule change is designed to and will be made available to all market trading sessions and to deter and detect prevent fraudulent and manipulative participants at the same time. The Index violations of Exchange rules and federal acts and practices in that the shares of Provider is not a broker-dealer and is securities laws applicable to trading on the Fund will be listed and traded on not affiliated with a broker-dealer. To 14 the Exchange pursuant to the initial and the extent that the Index Provider the Exchange. continued listing criteria for Index Fund becomes a broker-dealer or becomes The surveillances referred to above Shares based on a fixed income index in affiliated with a broker-dealer, the Index generally focus on detecting securities Rule 14.11(c)(4), except for the Provider will implement and will trading outside their normal patterns, minimum principal amount outstanding maintain a ‘‘fire wall’’ around the which could be indicative of requirement of 14.11(c)(4)(B)(i)(b). The personnel who have access to manipulative or other violative activity. information concerning changes and When such situations are detected, Exchange represents that trading in the adjustments to the Underlying Index surveillance analysis follows and shares of the Fund will be subject to the and the Underlying Index shall be investigations are opened, where existing trading surveillances calculated by a third party who is not appropriate, to review the behavior of administered by the Exchange as well as a broker-dealer or fund advisor. In all relevant parties for all relevant cross-market surveillances administered addition, any advisory committee, trading violations. by the FINRA on behalf of the Exchange, which are designed to detect violations supervisory board or similar entity that The Exchange or FINRA, on behalf of advises the Index Provider or that makes of Exchange rules and federal securities the Exchange, or both, will laws applicable to trading on the decisions on the Index, methodology communicate as needed regarding and related matters, will implement and Exchange. The Exchange represents that trading in the Shares and ETFs with these procedures are adequate to maintain, or be subject to, procedures other markets and other entities that are designed to prevent the use and properly monitor Exchange trading of members of the ISG, and the Exchange the shares of the Fund in all trading dissemination of material non-public or FINRA, on behalf of the Exchange, or information regarding the Underlying sessions and to deter and detect both, may obtain trading information violations of Exchange rules and federal Index. regarding trading in the Shares and The Exchange’s existing rules require securities laws applicable to trading on ETFs from such markets and other that the issuer of the Fund notify the the Exchange. The Exchange or FINRA, entities. In addition, the Exchange may Exchange of any material change to the on behalf of the Exchange, or both, will obtain information regarding trading in methodology used to determine the communicate as needed regarding the Shares and ETFs from markets and composition of the Underlying Index trading in the shares of the Fund with other entities that are members of ISG or and, therefore, if the methodology of the other markets that are members of the with which the Exchange has in place Underlying Index was changed in a ISG. In addition, the Exchange will a comprehensive surveillance sharing manner that would materially alter its communicate as needed regarding existing composition, the Exchange agreement. In addition, FINRA, on trading in the shares of the Fund with would have advance notice and would behalf of the Exchange, is able to access, other markets that are members of the evaluate the modifications to determine as needed, trade information for certain ISG or with which the Exchange has in whether the Underyling [sic] Index fixed income securities held by a Fund place a comprehensive surveillance remained sufficiently broad-based and reported to FINRA’s Trade Reporting sharing agreement. FINRA also can well diversified. and Compliance Engine (‘‘TRACE’’). access data obtained from the Municipal Price information regarding municipal FINRA also can access data obtained Securities Rulemaking Board relating to bonds, convertible securities, and non- from the Municipal Securities municipal bond trading activity for exchange traded assets, including Rulemaking Board (‘‘MSRB’’) relating to surveillance purposes in connection investment companies, derivatives, municipal bond trading activity for with trading in the shares of the Fund. money market instruments, repurchase surveillance purposes in connection FINRA, on behalf of the Exchange, is agreements, structured notes, with trading in the Shares. able to access, as needed, trade participation notes, and when-issued information for certain fixed income securities is available from third party 14 FINRA conducts cross-market surveillances on securities held by the Fund reported to behalf of the exchange pursuant to a regulatory pricing services and major market data services agreement. The Exchange is responsible for vendors. For exchange-traded assets, FINRA’s performance under this regulatory services 15 15 U.S.C. 78f. including investment companies, agreement. 16 15 U.S.C. 78f(b)(5).

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FINRA’s Trade Reporting and believes that because [sic] these will halt trading in the Shares under the Compliance Engine (‘‘TRACE’’). representations regarding diversification conditions specified in BZX Rule 11.18. As discussed above, the Exchange and the lack of concentration among Trading may be halted because of believes that the Underlying Index is constituent securities provides [sic] a market conditions or for reasons that, in sufficiently broad-based to deter strong degree of protection against index the view of the Exchange, make trading potential manipulation. The Underlying manipulation that is consistent with in the Shares inadvisable. These may Index currently includes 3,637 other proposals that have been approved include: (1) The extent to which trading component securities. Whereas the Rule for listing and trading by the is not occurring in the securities and/or 14.11(c)(4)(B)(i)(e) requires that an Commission. the financial instruments composing the index contain securities from a The proposed rule change is designed daily disclosed portfolio of the Funds; minimum of 13 non-affiliated issuers, to promote just and equitable principles or (2) whether other unusual conditions the Underlying Index includes of trade and to protect investors and the or circumstances detrimental to the securities issued by municipal entities public interest in that a large amount of maintenance of a fair and orderly in more than 45 states or U.S. territories. information is publicly available market are present. Trading in the Further, whereas the generic listing regarding the Funds, thereby promoting Shares also will be subject to Rule rules permit a single component market transparency. The Fund’s 14.11(c)(1)(B)(iv), which sets forth security to represent up to 30% of the portfolio holdings will be disclosed on circumstances under which Shares of a weight of an index and the top five the Fund’s website daily after the close Fund may be halted. In addition, component securities to, in aggregate, of trading on the Exchange and prior to investors will have ready access to represent up to 65% of the weight of an the opening of trading on the Exchange information regarding the applicable index, the largest component security in the following day. Moreover, the IIV for IIV, and quotation and last sale the Underyling [sic] Index only shares of the Fund will be widely information for the shares of the Fund. constitutes 0.32% of the weight of the disseminated by one or more major Trade price and other information Underlying Index and the largest five market data vendors at least every 15 relating to municipal bonds is available component securities represent 1.36% seconds during the Exchange’s Regular through the Municipal Securities of the weight of the Underlying Index. Trading Hours. The current value of the Rulemaking Board’s Electronic The Exchange believes that this Index will be disseminated by one or Municipal Market Access (‘‘EMMA’’) significant diversification and the lack more major market data vendors at least system. of concentration among constituent once per day. Information regarding All statements and representations securities provides [sic] a strong degree market price and trading volume of the made in this filing regarding the index of protection against index shares of the Fund will be continually composition, the description of the manipulation. The Underlying Index available on a real-time basis throughout portfolio or reference assets, limitations and Fund satisfy all of the generic the day on brokers’ computer screens on portfolio holdings or reference assets, listing requirements for Index Fund and other electronic services, and dissemination and availability of index, Shares based on a fixed income index, quotation and last sale information will reference asset, and intraday indicative except for the minimum principal be available via the CTA high-speed values (as applicable), or the amount outstanding requirement of line. The website for the Fund will applicability of Exchange listing rules 14.11(c)(4)(B)(i)(b). A fundamental include the prospectus for the Fund and shall constitute continued listing purpose behind the minimum principal additional data relating to NAV and requirements for listing the Shares on amount outstanding requirement is to other applicable quantitative the Exchange. The issuer is required to ensure that component securities of an information. advise the Exchange of any failure by index are sufficiently liquid such that If the Exchange becomes aware that the Fund to comply with the continued the potential for index manipulation is the Fund’s NAV is not being listing requirements, and, pursuant to reduced. With this in mind, the disseminated to all market participants its obligations under Section 19(g)(1) of Exchange notes that the representations at the same time, it will halt trading in the Act, the Exchange will monitor for in the Requirements for Index the shares of the Fund until such time compliance with the continued listing Constituents for the Underlying Index as the NAV is available to all market requirements. If the Fund is not in are identical to the representations participants. With respect to trading compliance with the applicable listing made regarding the Comparable Index, halts, the Exchange may consider all requirements, the Exchange will which underlies a series of Index Fund relevant factors in exercising its commence delisting procedures under Shares that were previously approved discretion to halt or suspend trading in Rule 14.12. for listing and trading by the the shares of the Fund. Trading also The proposed rule change is designed Commission.17 In the Approval Order, may be halted because of market to perfect the mechanism of a free and the Commission highlighted the conditions or for reasons that, in the open market and, in general, to protect representations that the Comparable view of the Exchange, make trading in investors and the public interest in that Index would, on a continuous basis, the shares the Fund inadvisable. If the it will facilitate the listing and trading contain at least 500 component IIV and index value are not being of exchange-traded products that securities and that at least 90% of the disseminated for the Fund as required, principally hold municipal bonds and weight of the Comparable Index will be the Exchange may halt trading during that will enhance competition among comprised of securities that have a the day in which the interruption to the market participants, to the benefit of minimum par amount of $25 million dissemination of the IIV or index value investors and the marketplace. The and were a constituent of an offering occurs. If the interruption to the Exchange has in place surveillance where the original offering amount was dissemination of an IIV or index value procedures relating to trading in the at least $100 million. The Exchange persists past the trading day in which it shares of the Fund and may obtain occurred, the Exchange will halt information via ISG from other 17 The Comparable Index underlies the iShares trading. The Exchange may consider all exchanges that are members of ISG or National Muni Bond ETF. See Securities Exchange relevant factors in exercising its with which the Exchange has entered Act Release No. 82295 (December 12, 2017), 82 FR 60056 (December 18, 2017) (SR–NYSEArca–2017– discretion to halt or suspend trading in into a comprehensive surveillance 56) (the ‘‘Approval Order’’). the Shares of the Fund. The Exchange sharing agreement. In addition,

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investors will have ready access to Comments may be submitted by any of SECURITIES AND EXCHANGE information regarding the IIV and the following methods: COMMISSION quotation and last sale information for Electronic Comments the shares of the Fund. [Release No. 34–83207; File No. SR–MSRB– For the above reasons, the Exchange • Use the Commission’s internet 2018–03] believes that the proposed rule change comment form (http://www.sec.gov/ Self-Regulatory Organizations; is consistent with the requirements of rules/sro.shtml); or Section 6(b)(5) of the Act. Municipal Securities Rulemaking • Send an email to rule-comments@ Board; Notice of Filing and Immediate B. Self-Regulatory Organization’s sec.gov. Please include File Number Effectiveness of a Proposed Rule Statement on Burden on Competition CboeBZX–2018–033 on the subject line. Change To Revise the Language of The Exchange does not believe that Paper Comments Certain Administrative Rules To the proposed rule change will impose Continue To Help Ensure That They any burden on competition that is not • Send paper comments in triplicate Reflect MSRB Practices and Improve necessary or appropriate in furtherance to Secretary, Securities and Exchange Consistency Among the Rules of the purpose of the Act. The Exchange Commission, 100 F Street NE, notes that the proposed rule change will Washington, DC 20549–1090. May 10, 2018. facilitate the listing and trading of an Pursuant to Section 19(b)(1) of the All submissions should refer to File additional exchange-traded product that Securities Exchange Act of 1934 (the Number CboeBZX–2018–033. This file 1 will enhance competition among market ‘‘Act’’ or ‘‘Exchange Act’’) and Rule number should be included on the 2 participants, to the benefit of investors 19b–4 thereunder, notice is hereby subject line if email is used. To help the and the marketplace. given that on May 1, 2018 the Municipal Commission process and review your Securities Rulemaking Board (the C. Self-Regulatory Organization’s comments more efficiently, please use ‘‘MSRB’’ or ‘‘Board’’) filed with the Statement on Comments on the only one method. The Commission will Securities and Exchange Commission Proposed Rule Change Received From post all comments on the Commission’s (‘‘Commission’’) the proposed rule Members, Participants, or Others internet website (http://www.sec.gov/ change as described in Items I, II, and The Exchange has neither solicited rules/sro.shtml). Copies of the III below, which Items have been nor received written comments on the submission, all subsequent prepared by the MSRB. The proposed rule change. amendments, all written statements Commission is publishing this notice to with respect to the proposed rule solicit comments on the proposed rule III. Date of Effectiveness of the change that are filed with the change from interested persons. Proposed Rule Change and Timing for Commission, and all written Commission Action communications relating to the I. Self-Regulatory Organization’s Statement of the Terms of Substance of Because the foregoing proposed rule proposed rule change between the the Proposed Rule Change change does not: (i) Significantly affect Commission and any person, other than the protection of investors or the public those that may be withheld from the The MSRB filed with the Commission interest; (ii) impose any significant public in accordance with the proposed amendments to MSRB Rule burden on competition; and (iii) become provisions of 5 U.S.C. 552, will be A–3, on membership on the Board, operative for 30 days from the date on available for website viewing and MSRB Rule A–4, on meetings of the which it was filed, or such shorter time printing in the Commission’s Public Board, MSRB Rule A–5, on officers and as the Commission may designate, it has Reference Room, 100 F Street NE, employees of the Board, and MSRB Rule become effective pursuant to Section Washington, DC 20549, on official A–17, on confidentiality of examination 19(b)(3)(A) of the Act 18 and Rule 19b– business days between the hours of reports, to revise the language of the 4(f)(6) thereunder.19 10:00 a.m. and 3:00 p.m. Copies of the rules to continue to help ensure that At any time within 60 days of the filing will also be available for they reflect MSRB practices and filing of the proposed rule change, the inspection and copying at the principal improve consistency among the rules Commission summarily may office of the Exchange. All comments (collectively, the ‘‘proposed rule temporarily suspend such rule change if received will be posted without change. change’’). The MSRB has designated the it appears to the Commission that such Persons submitting comments are proposed rule change as being action is necessary or appropriate in the cautioned that we do not redact or edit immediately effective upon filing public interest, for the protection of personal identifying information from pursuant to Section 19(b)(3)(A)(iii) of investors, or otherwise in furtherance of comment submissions. You should the Act 3 and Rule 19b–4(f)(3) 4 the purposes of the Act. If the submit only information that you wish thereunder. The proposed rule change is Commission takes such action, the to make available publicly. All concerned solely with the Commission shall institute proceedings submissions should refer to File administration of the MSRB in that it to determine whether the proposed rule Number CboeBZX–2018–033 and amends certain rules that relate change should be approved or should be submitted on or before June exclusively to the internal operation of disapproved. 6,2018. the Board. The text of the proposed rule change IV. Solicitation of Comments For the Commission, by the Division of Trading and Markets, pursuant to delegated is available on the MSRB’s website at Interested persons are invited to authority.20 www.msrb.org/Rules-and- submit written data, views, and Eduardo A. Aleman, Interpretations/SEC-Filings/2018- arguments concerning the foregoing, Filings.aspx, at the MSRB’s principal Assistant Secretary. including whether the proposed rule [FR Doc. 2018–10377 Filed 5–15–18; 8:45 am] change is consistent with the Act. 1 15 U.S.C. 78s(b)(1). BILLING CODE 8011–01–P 2 17 CFR 240.19b–4. 18 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A)(iii). 19 17 CFR 240.19b–4(f)(6). 20 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(3).

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office, and at the Commission’s Public While applicants can recommend individual who is associated with and Reference Room. themselves and this phrasing is representative of municipal advisors therefore not inaccurate, the proposed (‘‘municipal advisor representative’’).11 II. Self-Regulatory Organization’s rule change would amend Rule A– As indicated above, the MSRB amended Statement of the Purpose of, and 3(b)(iii) and (iv) to better reflect the Statutory Basis for, the Proposed Rule its A-Rules to reflect certain changes manner in which the Board conducts Change made by the Dodd-Frank Act. However, the application process by replacing the more recent review of the A-Rules In its filing with the Commission, the references to ‘‘recommendations’’ with identified two provisions which refer MSRB included statements concerning ‘‘applications’’ and making other generally to other Board member the purpose of and basis for the conforming changes. categories but have not been amended to proposed rule change and discussed any Rule A–3(d) address municipal advisor comments it received on the proposed representatives. rule change. The text of these statements During the review, the MSRB noted On July 29, 2009, an amendment to may be examined at the places specified an obsolete cross-reference in Rule A– Rule A–3 became effective to add in Item IV below. The MSRB has 3(d), which stems from previous section (g) (now Rule A–3(f)), on prepared summaries, set forth in amendments to Rule A–3. Specifically, affiliations, which prohibits two persons Sections A, B, and C below, of the most on January 25, 2011, the Commission associated with the same dealer from significant aspects of such statements. approved amendments to former Rule serving as members of the Board at the A–3(c) (now Rule A–3(b)) 7 to reflect A. Self-Regulatory Organization’s same time.12 The same concerns that changes made by the Dodd-Frank Wall Statement of the Purpose of, and arise from two representatives of the Street Reform and Consumer Protection Statutory Basis for, the Proposed Rule same dealer serving on the Board at the Act of 2010 (the ‘‘Dodd-Frank Act’’),8 Change same time could also arise with which amended Section 15B of the municipal advisor representatives and, 1. Purpose 9 Exchange Act. Subsection (vi) of the accordingly, the rationale underlying The MSRB has adopted former Rule A–3(c) (now Rule A–3(b)) Rule A–3(f) should apply evenly to all was deleted, which included a administrative rules (‘‘A-Rules’’) that categories of regulated representatives. requirement that the public pertain to the operation and Thus, the proposed rule change would representatives on the Board, prior to administration of the Board, which are amend Rule A–3(f) also to address assuming office, be subject to approval identified by the prefix A.5 The MSRB municipal advisors, such that two by the Commission to assure that they routinely reviews its A-Rules for persons associated with the same were not disqualified as public members accuracy and adherence to governance municipal advisor would be prohibited by reason of association with a broker, best practices. As a result of a recent from serving on the Board at the same dealer or municipal securities dealer. review of certain A-Rules, the MSRB is time. The deletion was made as the MSRB proposing to amend Rules A–3, A–4, A– Similarly, Rule A–3(c), which 5 and A17. took the process of assuring public status upon itself. provides that an affirmative vote of two- Rule A–3(b)(i) At the time of this change, a cross- thirds of the whole Board is needed to remove a member from office, requires As part of its review of the A-Rules, reference in another part of Rule A–3 to that the vote to remove include the the MSRB sought to improve internal the Commission’s approval function affirmative vote of at least one public consistency among its rules. The MSRB was inadvertently not deleted. This representative, one broker-dealer has adopted certain definitional rules cross-reference is currently contained in representative and one bank which define terms used in the rules of Rule A–3(d), on vacancies, and it representative. The rationale of this the Board.6 Rule D–4 defines the term provides that vacancies on the Board provision is to require the affirmative ‘‘Board’’ as the Municipal Securities with respect to public representatives vote of at least one member of each Rulemaking Board, but in one instance are filled by Board vote, ‘‘subject to the Board category in the decision to Rule A–3(b)(i) refers to the ‘‘Board of Commission’s power of approval remove a member. According to the Directors.’’ The proposed rule change referred to in section (c) of [Rule A–3] same rationale, this provision should be would replace this reference to ‘‘Board . . . .’’ As noted, however, after the extended also to require the affirmative of Directors’’ with the defined term 2011 amendments, there is no longer vote of at least one municipal advisor ‘‘Board’’ for consistency. any Commission approval function for public representatives, as was representative to remove a Board Rule A–3(b)(iii) and (iv) previously described in Rule A–3(c). member from office; thus, the proposed Rule A–3(b)(iii) sets forth information The cross-reference, therefore, has been rule change would so amend Rule regarding the Board application process, without any effect. The proposed rule A–3(c). including the public notices which the change would delete the obsolete cross- Rule A–4(d), Rule A–5(c) and Rule Nominating and Governance Committee reference in Rule A–3(d). A–17 (‘‘Committee’’) publishes and the Rule A–3(c) and (f) information that applicants must Lastly, the proposed rule change provide to the Committee. In describing The Dodd-Frank Act grants the MSRB would amend certain provisions in the information that the Committee’s broad rulemaking authority over Rules A–4, A–5 and A–17 to refer to the public notice will require, Rule A– municipal advisors and municipal MSRB’s most senior executive as ‘‘Chief 10 3(b)(iii) references ‘‘applicant advisory activities and requires that Executive Officer’’ instead of the current recommendations.’’ In practice, the the Board include at least one title of ‘‘Executive Director’’ due to an Committee solicits applications through 7 an application form completed by Release No. 34–63764 (January 25, 2011), 76 FR 11 Id. In addition, not less than 30 percent of the 5417 (January 31, 2011) (SR–MSRB–2010–17). total number of regulated representatives must be applicants. 8 Public Law 111–203, 124 Stat. 1376 (2010). municipal advisor representatives. MSRB Rule A– 9 15 U.S.C. 78o–4. 3 (Membership on the Board). 5 See MSRB Rule A–1. 10 See Section 15B(b)(2) of the Exchange Act (15 12 Release No. 34–60408 (July 30, 2009), 74 FR 6 Id. U.S.C. 78o–4(b)(2)). 39372 (August 6, 2009) (SR–MSRB–2009–11).

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intended alignment with other existing Section 19(b)(3)(A) of the Act 15 and cautioned that we do not redact or edit MSRB officer titles. paragraph (f) of Rule 19b–4 personal identifying information from thereunder.16 At any time within 60 submissions. You should submit only 2. Statutory Basis days of the filing of the proposed rule information that you wish to make The MSRB believes that the proposed change, the Commission summarily may available publicly. All submissions rule change is consistent with the temporarily suspend such rule change if should refer to File Number SR–MSRB– requirements of Section 15B(b)(2)(B) it appears to the Commission that such 2018–03 and should be submitted on or and (I) of the Act.13 Section 15B(b)(2)(B) action is necessary or appropriate in the before June 6, 2018. provides that the MSRB’s rules shall public interest, for the protection of For the Commission, pursuant to delegated ‘‘establish fair procedures for the investors, or otherwise in furtherance of authority.17 nomination and election of members of the purposes of the Act. Eduardo A. Aleman, the Board and assure fair representation IV. Solicitation of Comments Assistant Secretary. in such nominations and elections of public representatives, broker dealer Interested persons are invited to [FR Doc. 2018–10378 Filed 5–15–18; 8:45 am] representatives, bank representatives, submit written data, views, and BILLING CODE 8011–01–P and advisor representatives.’’ While the arguments concerning the foregoing, proposed rule change would not alter including whether the proposed rule SECURITIES AND EXCHANGE the MSRB’s Board nomination or change is consistent with the Act. COMMISSION election process, it would help to Comments may be submitted by any of continue to ensure that the MSRB’s the following methods: [Release No. 34–83210; File No. SR– rules reflect that process. Electronic Comments CboeBZX–2018–030] Section 15B(2)(I) provides that the • MSRB’s rules shall provide for the Use the Commission’s internet Self-Regulatory Organizations; Cboe operation and administration of the comment form (http://www.sec.gov/ BZX Exchange, Inc.; Notice of Filing MSRB. The proposed rule change rules/sro.shtml); or and Immediate Effectiveness of a • Send an email to rule-comments@ amends provisions of the A-Rules that Proposed Rule Change Related to Fees sec.gov. Please include File Number SR– relate to the operation and for Use on Cboe BZX Exchange, Inc. MSRB–2018–03 on the subject line. administration of the MSRB. The MSRB May 10, 2018. also believes that the proposed rule Paper Comments Pursuant to Section 19(b)(1) of the change will further enhance the Board’s • Send paper comments in triplicate Securities Exchange Act of 1934 (the governance procedures by improving to Secretary, Securities and Exchange ‘‘Act’’),1 and Rule 19b–4 thereunder,2 descriptions of the MSRB’s practices Commission, 100 F Street NE, notice is hereby given that on May 1, and improving internal consistency. Washington, DC 20549. 2018, Cboe BZX Exchange, Inc. (the B. Self-Regulatory Organization’s All submissions should refer to File ‘‘Exchange’’ or ‘‘BZX’’) filed with the Statement on Burden on Competition Number SR–MSRB–2018–03. This file Securities and Exchange Commission number should be included on the Section 15B(b)(2)(C) of the Act 14 (‘‘Commission’’) the proposed rule subject line if email is used. To help the requires that MSRB rules not be change as described in Items I, II and III Commission process and review your designed to impose any burden on below, which Items have been prepared comments more efficiently, please use competition not necessary or by the Exchange. The Exchange has only one method. The Commission will appropriate in furtherance of the designated the proposed rule change as post all comments on the Commission’s purposes of the Act. The MSRB believes one establishing or changing a member internet website (http://www.sec.gov/ that the proposed rule change does not due, fee, or other charge imposed by the rules/sro.shtml). Copies of the impose any burden on competition not Exchange under Section 19(b)(3)(A)(ii) submission, all subsequent 3 necessary or appropriate in furtherance of the Act and Rule 19b–4(f)(2) amendments, all written statements 4 of the purposes of the Act, in that the thereunder, which renders the with respect to the proposed rule proposed rule change simply amends proposed rule change effective upon change that are filed with the language in the A-Rules to continue to filing with the Commission. The Commission, and all written help ensure they reflect the MSRB’s Commission is publishing this notice to communications relating to the practices and improve consistency solicit comments on the proposed rule proposed rule change between the among MSRB rules. change from interested persons. Commission and any person, other than C. Self-Regulatory Organization’s those that may be withheld from the I. Self-Regulatory Organization’s Statement on Comments on the public in accordance with the Statement of the Terms of Substance of Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be the Proposed Rule Change Members, Participants, or Others available for website viewing and The Exchange filed a proposal to Written comments were neither printing in the Commission’s Public amend the fee schedule applicable to 5 solicited nor received on the proposed Reference Room, 100 F Street NE, Members and non-Members of the rule change. Washington, DC 20549 on official Exchange pursuant to BZX Rules 15.1(a) business days between the hours of and (c). III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of the Proposed Rule Change and Timing for filing also will be available for 17 17 CFR 200.30–3(a)(12). Commission Action inspection and copying at the principal 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. The foregoing proposed rule change office of the MSRB. All comments received will be posted without change. 3 15 U.S.C. 78s(b)(3)(A)(ii). has become effective pursuant to 4 Persons submitting comments are 17 CFR 240.19b–4(f)(2). 5 The term ‘‘Member’’ is defined as ‘‘any 13 15 U.S.C. 78o–4(b)(2)(B) and 15 U.S.C. 78o– registered broker or dealer that has been admitted 4(b)(2)(I). 15 15 U.S.C. 78s(b)(3)(A). to membership in the Exchange.’’ See Exchange 14 15 U.S.C. 78o–4(b)(2)(C). 16 17 CFR 240.19b–4(f). Rule 1.5(n).

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The text of the proposed rule change New Volume Tier objectives of Section 6(b)(4),13 in is available at the Exchange’s website at particular, as it is designed to provide The Exchange currently provides a www.markets.cboe.com, at the principal for the equitable allocation of reasonable standard rebate of $0.00150 per share office of the Exchange, and at the dues, fees and other charges among its for non-displayed orders that add Commission’s Public Reference Room. Members and other persons using its liquidity. The Exchange proposes to facilities. The Exchange also notes that II. Self-Regulatory Organization’s adopt a new Non-Displayed Add it operates in a highly-competitive Statement of the Purpose of, and Volume Tape A Volume Tier, Tier 1 market in which market participants can Statutory Basis for, the Proposed Rule under Footnote 1 (‘‘HV Volume Tier’’) readily direct order flow to competing Change which would be available for qualifying venues if they deem fee levels at a orders which yield fee code HV. particular venue to be excessive or In its filing with the Commission, the Particularly, under the proposed HV incentives to be insufficient. The Exchange included statements Volume Tier, a Member may receive an proposed rule changes reflect a concerning the purpose of and basis for enhanced rebate of $0.00260 per share competitive pricing structure designed the proposed rule change and discussed where they add an ADV 7 greater than or to incentivize market participants to any comments it received on the equal to 0.20% of the TCV 8 as Non- direct their order flow to the Exchange. proposed rule change. The text of these Displayed orders that yield fee codes HI statements may be examined at the 9 The Exchange believes the proposal to or HV. The Exchange believes the eliminate fee code HA and replace it places specified in Item IV below. The proposed change will encourage Exchange has prepared summaries, set with fees codes HV, HB and HY is Members to increase their liquidity on reasonable, equitable and not unfairly forth in Sections A, B, and C below, of the exchange. The Exchange also notes the most significant parts of such discriminatory because the standard that other Exchanges maintain other rebate for current fee code HA and statements. volume tiers specific to a particular 10 proposed fee codes HV, HB and HY, is (A) Self-Regulatory Organization’s Tape. not changing and because it applies Statement of the Purpose of, and Fee Code D uniformly to all Members. Additionally, Statutory Basis for, the Proposed Rule as noted above, the Exchange already The Exchange lastly proposes to Change maintains separate fee codes based on increase the fee for orders yielding fee 1. Purpose Tapes for other types of orders.14 code D, which results from an order The Exchange believes the adoption The Exchange proposes to amend its routed to the New York Stock Exchange of the HV Volume Tier under footnote fee schedule applicable to its equities (‘‘NYSE’’) using Destination Specific, 1 is reasonable because it provides trading platform (‘‘BZX Equities’’) to: (i) RDOT, RDOX, TRIM or SLIM routing Members an opportunity to receive an Eliminate fee code HA and replace it strategy. Particularly, NYSE recently enhanced rebate for Non-Displayed with new fee codes HV, HB and HY, (ii) implemented certain pricing changes orders that add liquidity and is a add a Non-Displayed Add Volume Tier; related to Tapes B and C securities, reasonable means to encourage and (iii) modify the rate associated with including adopting a per tape fee of Members to increase their liquidity on fee code D, effective May 1, 2018. $0.00280 per share to remove liquidity the Exchange. The Exchange further from the Exchange for member Fee Codes HA, HV, HB, HY believes that the proposed tier organizations with an Adding ADV of at represents an equitable allocation of Currently, fee code HA is appended to least 50,000 shares for that respective reasonable dues, fees, and other charges 11 all non-displayed orders that add Tape. Based on the changes in pricing because the thresholds necessary to liquidity and receive a rebate of at NYSE, the Exchange is proposing to achieve the tier encourages Members to $0.00150 per share. The Exchange increase its fee for orders executed at add additional liquidity to the proposes to eliminate fee code HA and NYSE that yield fee code D from Exchange. The Exchange also notes that replace it with fee codes HV, HB and $0.00265 to $0.00280. the Exchange already utilities similar HY. Particularly, the Exchange proposes 2. Statutory Basis volume tiers with similar criteria 15 and to separate out fee code HA into three also notes that other exchanges maintain separate fee codes, each representing a The Exchange believes that the Tape-specific volume tiers.16 The different Tape for non-displayed orders proposed rule changes are consistent Exchange further believes the proposed that add liquidity. The Exchange with the objectives of Section 6 of the 12 fee change is equitable and non- proposes to adopt fee code HV for Tape Act, in general, and furthers the discriminatory because it applies A non-displayed orders that add uniformly to all Members. liquidity; fee code HB for Tape B non- 7 ‘‘ADV’’ means average daily volume calculated The Exchange believes the proposed as the number of shares added or removed, displayed orders that add liquidity; and combined, per day. ADAV and ADV are calculated fee is reasonable because it reflects a fee code HY for Tape C non-displayed on a monthly basis. Id. pass-through of the pricing increase by orders that add liquidity. The Exchange 8 ‘‘TCV’’ means total consolidated volume NYSE noted above. The Exchange notes it currently maintains separate fee calculated as the volume reported by all exchanges further believes the proposed fee change codes based on Tapes for other types of and trade reporting facilities to a consolidated is non-discriminatory because it applies 6 transaction reporting plan for the month for which orders as well. In connection with this the fees apply. Id. uniformly to all Members. change, the Exchange proposes to 9 Fee code HI is appended to non-displayed eliminate references to fee code HA orders that receive price improvement and add 13 15 U.S.C. 78f(b)(4). throughout the Fee Schedule and liquidity. Id. 14 See e.g., Cboe BZX U.S. Equities Exchange Fee replace it with references to HV, HB, 10 See e.g., Cboe EDGX U.S. Equities Exchange Schedule, Fee Codes W and BB, and N which fee Fee Schedule, Tape B Volume Tiers. codes represent orders removing liquidity from BZX HY. 11 See NYSE Trader Update, NYSE—Fees for for Tapes A, B and C respectively. Trading Tapes B and C securities, dated April 2, 15 See Cboe BZX U.S. Equities Exchange Fee 6 See e.g., Cboe BZX U.S. Equities Exchange Fee 2018, available at https://www.nyse.com/ Schedule, Add Volume Tiers applicable to current Schedule, Fee Codes W and BB, and N which fee publicdocs/nyse/markets/nyse/NYSE_Fee_Change_ fee code HA. codes represent orders removing liquidity from BZX BandC_April2018.pdf. 16 See e.g., Cboe EDGX U.S. Equities Exchange for Tapes A, B and C respectively. 12 15 U.S.C. 78f. Fee Schedule, Tape B Volume Tiers.

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(B) Self-Regulatory Organization’s consistent with the Act. Comments may SECURITIES AND EXCHANGE Statement on Burden on Competition be submitted by any of the following COMMISSION methods: The Exchange does not believe that [Release No. 34–83211; File No. SR– the proposed rule change will impose Electronic Comments CboeBYX–2018–004] any burden on competition not necessary or appropriate in furtherance • Use the Commission’s internet Self-Regulatory Organizations; Cboe of the purposes of the Act. The comment form (http://www.sec.gov/ BYX Exchange, Inc.; Notice of Filing Exchange does not believe that any of rules/sro.shtml); or and Immediate Effectiveness of a Proposed Rule Change Related to Fees the proposed change to the Exchange’s • Send an email to rule-comments@ for Use on Cboe BYX Exchange, Inc. tiered pricing structure burden sec.gov. Please include File No. SR– competition, but instead, that they CboeBZX–2018–030 on the subject line. May 10, 2018. enhance competition as they are Pursuant to Section 19(b)(1) of the intended to increase the Paper Comments Securities Exchange Act of 1934 (the competitiveness of BZX by modifying • ‘‘Act’’),1 and Rule 19b–4 thereunder,2 pricing incentives in order to attract Send paper comments in triplicate notice is hereby given that on May 1, order flow and incentivize participants to Secretary, Securities and Exchange to increase their participation on the Commission, 100 F Street NE, 2018, Cboe BYX Exchange, Inc. (the Exchange and to reflect a pass through Washington, DC 20549–1090. ‘‘Exchange’’ or ‘‘BYX’’) filed with the of a pricing increase by NYSE. The Securities and Exchange Commission All submissions should refer to File No. (‘‘Commission’’) the proposed rule Exchange notes that it operates in a SR–CboeBZX–2018–030. This file highly competitive market in which change as described in Items I, II and III number should be included on the below, which Items have been prepared market participants can readily direct subject line if email is used. To help the order flow to competing venues if they by the Exchange. The Exchange has Commission process and review your designated the proposed rule change as deem fee structures to be unreasonable comments more efficiently, please use or excessive. The proposed changes are one establishing or changing a member only one method. The Commission will due, fee, or other charge imposed by the generally intended to enhance the post all comments on the Commission’s rebates for liquidity added to the Exchange under Section 19(b)(3)(A)(ii) internet website (http://www.sec.gov/ 3 Exchange, which is intended to draw of the Act and Rule 19b–4(f)(2) rules/sro.shtml). Copies of the 4 additional liquidity to the Exchange. thereunder, which renders the submission, all subsequent proposed rule change effective upon The Exchange does not believe the amendments, all written statements proposed amendments would burden filing with the Commission. The with respect to the proposed rule Commission is publishing this notice to intramarket competition as they would change that are filed with the be available to all Members uniformly. solicit comments on the proposed rule Commission, and all written change from interested persons. (C) Self-Regulatory Organization’s communications relating to the Statement on Comments on the proposed rule change between the I. Self-Regulatory Organization’s Proposed Rule Change Received From Commission and any person, other than Statement of the Terms of Substance of Members, Participants or Others those that may be withheld from the the Proposed Rule Change The Exchange has not solicited, and public in accordance with the The Exchange filed a proposal to does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be amend the fee schedule applicable to this proposed rule change. The available for website viewing and Members 5 and non-Members of the Exchange has not received any printing in the Commission’s Public Exchange pursuant to BYX Rules 15.1(a) unsolicited written comments from Reference Room, 100 F Street NE, and (c). Members or other interested parties. Washington, DC 20549, on official The text of the proposed rule change business days between the hours of is available at the Exchange’s website at III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such www.markets.cboe.com, at the principal Proposed Rule Change and Timing for filing will also be available for office of the Exchange, and at the Commission Action inspection and copying at the principal Commission’s Public Reference Room. The foregoing rule change has become office of the Exchange. All comments received will be posted without change. II. Self-Regulatory Organization’s effective pursuant to Section 19(b)(3)(A) Statement of the Purpose of, and 17 Persons submitting comments are of the Act and paragraph (f) of Rule Statutory Basis for, the Proposed Rule 18 cautioned that we do not redact or edit 19b–4 thereunder. At any time within Change 60 days of the filing of the proposed rule personal identifying information from change, the Commission summarily may comment submissions. You should In its filing with the Commission, the temporarily suspend such rule change if submit only information that you wish Exchange included statements it appears to the Commission that such to make available publicly. All concerning the purpose of and basis for action is necessary or appropriate in the submissions should refer to File No. the proposed rule change and discussed public interest, for the protection of SR–CboeBZX–2018–030 and should be any comments it received on the investors, or otherwise in furtherance of submitted on or before June 6, 2018. proposed rule change. The text of these statements may be examined at the the purposes of the Act. For the Commission, by the Division of places specified in Item IV below. The IV. Solicitation of Comments Trading and Markets, pursuant to delegated authority.19 1 15 U.S.C. 78s(b)(1). Interested persons are invited to Eduardo A. Aleman, submit written data, views and 2 17 CFR 240.19b–4. Assistant Secretary. 3 arguments concerning the foregoing, 15 U.S.C. 78s(b)(3)(A)(ii). [FR Doc. 2018–10380 Filed 5–15–18; 8:45 am] 4 17 CFR 240.19b–4(f)(2). including whether the proposal is 5 BILLING CODE 8011–01–P The term ‘‘Member’’ is defined as ‘‘any registered broker or dealer that has been admitted 17 15 U.S.C. 78s(b)(3)(A). to membership in the Exchange.’’ See Exchange 18 17 CFR 240.19b–4(f). 19 17 CFR 200.30–3(a)(12). Rule 1.5(n).

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Exchange has prepared summaries, set dues, fees, and other charges among its consistent with the Act. Comments may forth in Sections A, B, and C below, of Members and other persons using its be submitted by any of the following the most significant parts of such facilities. methods: statements. The Exchange believes the proposed fee is reasonable because it reflects a Electronic Comments (A) Self-Regulatory Organization’s pass-through of the pricing increase by Statement of the Purpose of, and • Use the Commission’s internet NYSE noted above. The Exchange Statutory Basis for, the Proposed Rule comment form (http://www.sec.gov/ further believes the proposed fee change Change rules/sro.shtml); or is non-discriminatory because it applies • 1. Purpose uniformly to all Members. Send an email to rule-comments@ sec.gov. Please include File No. SR– The Exchange proposes to amend its (B) Self-Regulatory Organization’s CboeBYX–2018–004 on the subject line. fee schedule applicable to its equities Statement on Burden on Competition trading platform (‘‘BYX Equities’’) to Paper Comments The Exchange does not believe that increase the fee for orders yielding fee • code D, which results from an order the proposed rule change will impose Send paper comments in triplicate routed to the New York Stock Exchange any burden on competition not to Secretary, Securities and Exchange (‘‘NYSE’’) using Destination Specific, necessary or appropriate in furtherance Commission, 100 F Street NE, RDOT, RDOX, TRIM or SLIM routing of the purposes of the Act. The Washington, DC 20549–1090. strategy. Particularly, NYSE recently Exchange does not believe that the proposed change to the Exchange’s All submissions should refer to File No. implemented certain pricing changes SR–CboeBYX–2018–004. This file related to Tapes B and C securities, routing pricing burdens competition, as it’s based on the pricing of another number should be included on the including adopting a per tape fee of subject line if email is used. To help the $0.00280 per share to remove liquidity venue and applies uniformly to all Members. The Exchange notes that it Commission process and review your from the Exchange for member comments more efficiently, please use organizations with an Adding ADV of at operates in a highly competitive market in which market participants can only one method. The Commission will least 50,000 shares for that respective post all comments on the Commission’s Tape.6 Based on the changes in pricing readily direct order flow to competing venues if they deem fee structures to be internet website (http://www.sec.gov/ at NYSE, the Exchange is proposing to rules/sro.shtml). Copies of the increase its fee for orders executed at unreasonable or excessive. The Exchange does not believe the proposed submission, all subsequent NYSE that yield fee code D from amendments, all written statements $0.00265 to $0.00280. amendments would burden intramarket competition as they would be available with respect to the proposed rule 2. Statutory Basis to all Members uniformly. change that are filed with the Commission, and all written The Exchange believes the proposed (C) Self-Regulatory Organization’s communications relating to the rule change is consistent with the Statement on Comments on the Securities Exchange Act of 1934 (the proposed rule change between the Proposed Rule Change Received From ‘‘Act’’) and the rules and regulations Commission and any person, other than Members, Participants or Others thereunder applicable to the Exchange those that may be withheld from the and, in particular, the requirements of The Exchange has not solicited, and public in accordance with the Section 6(b) of the Act.7 Specifically, does not intend to solicit, comments on provisions of 5 U.S.C. 552, will be the Exchange believes the proposed rule this proposed rule change. The available for website viewing and change is consistent with the Section Exchange has not received any printing in the Commission’s Public 6(b)(5) 8 requirements that the rules of unsolicited written comments from Reference Room, 100 F Street NE, an exchange be designed to prevent Members or other interested parties. Washington, DC 20549, on official fraudulent and manipulative acts and business days between the hours of III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of such practices, to promote just and equitable Proposed Rule Change and Timing for principles of trade, to foster cooperation filing will also be available for Commission Action and coordination with persons engaged inspection and copying at the principal in regulating, clearing, settling, The foregoing rule change has become office of the Exchange. All comments processing information with respect to, effective pursuant to Section 19(b)(3)(A) received will be posted without change. and facilitating transactions in of the Act 10 and paragraph (f) of Rule Persons submitting comments are securities, to remove impediments to 19b–4 thereunder.11 At any time within cautioned that we do not redact or edit and perfect the mechanism of a free and 60 days of the filing of the proposed rule personal identifying information from open market and a national market change, the Commission summarily may comment submissions. You should system, and, in general, to protect temporarily suspend such rule change if submit only information that you wish investors and the public interest. it appears to the Commission that such to make available publicly. All Additionally, the Exchange believes the action is necessary or appropriate in the submissions should refer to File No. proposed rule change is consistent with public interest, for the protection of SR–CboeBYX–2018–004 and should be Section 6(b)(4) of the Act,9 which investors, or otherwise in furtherance of submitted on or before June 6, 2018. requires that Exchange rules provide for the purposes of the Act. For the Commission, by the Division of the equitable allocation of reasonable IV. Solicitation of Comments Trading and Markets, pursuant to delegated authority.12 6 See NYSE Trader Update, NYSE—Fees for Interested persons are invited to Eduardo A. Aleman, Trading Tapes B and C securities, dated April 2, submit written data, views and 2018, available at https://www.nyse.com/ Assistant Secretary. _ _ _ arguments concerning the foregoing, publicdocs/nyse/markets/nyse/NYSE Fee Change [FR Doc. 2018–10381 Filed 5–15–18; 8:45 am] BandC_April2018.pdf. including whether the proposal is 7 15 U.S.C. 78f(b). BILLING CODE 8011–01–P 8 15 U.S.C. 78f(b)(5). 10 15 U.S.C. 78s(b)(3)(A). 9 15 U.S.C. 78f(b)(4). 11 17 CFR 240.19b–4(f). 12 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE unnecessary expenses for common development of, a national market COMMISSION members and their SROs. system and a national clearance and Section 17(d)(1) of the Act 6 was settlement system, and is in conformity [Release No. 34–83208; File No. 4–536] intended, in part, to eliminate with the factors set forth in Section Program for Allocation of Regulatory unnecessary multiple examinations and 17(d) of the Act. Commission approval 7 Responsibilities Pursuant To Rule regulatory duplication. With respect to of a plan filed pursuant to Rule 17d–2 17d–2; Notice of Filing and Order a common member, Section 17(d)(1) relieves an SRO of those regulatory Approving and Declaring Effective an authorizes the Commission, by rule or responsibilities allocated by the plan to Amended Plan for the Allocation of order, to relieve an SRO of the another SRO. responsibility to receive regulatory Regulatory Responsibilities Between II. The Plan the Financial Industry Regulatory reports, to examine for and enforce Authority, Inc., Cboe Exchange, Inc., compliance with applicable statutes, On May 14, 2007, the Commission and Cboe C2 Exchange, Inc. rules, and regulations, or to perform declared effective the Plan entered into other specified regulatory functions. between NASD (n/k/a FINRA) and Cboe May 10, 2018. To implement Section 17(d)(1), the for allocating regulatory responsibility Notice is hereby given that the Commission adopted two rules: Rule pursuant to Rule 17d–2.11 On May 9, Securities and Exchange Commission 17d–1 and Rule 17d–2 under the Act.8 2014, the Commission declared effective (‘‘Commission’’) has issued an Order, Rule 17d–1 authorizes the Commission an amendment to the Plan to add C2 as pursuant to Section 17(d) of the to name a single SRO as the designated a Participant to the Plan.12 The Plan is Securities Exchange Act of 1934 examining authority (‘‘DEA’’) to intended to reduce regulatory (‘‘Act’’),1 approving and declaring examine common members for duplication for firms that are common effective an amendment to the plan for compliance with the financial members of FINRA and at least one of allocating regulatory responsibility responsibility requirements imposed by Cboe or C2 by allocating regulatory (‘‘Plan’’) filed on May 4, 2018, pursuant the Act, or by Commission or SRO responsibility with respect to certain to Rule 17d–2 of the Act,2 by the rules.9 When an SRO has been named as applicable laws, rules, and regulations Financial Industry Regulatory a common member’s DEA, all other that are common among them. Included Authority, Inc. (‘‘FINRA’’), Cboe SROs to which the common member in the Plan is an exhibit that lists every Exchange, Inc. (‘‘Cboe’’), and Cboe C2 belongs are relieved of the responsibility Cboe and C2 rule for which FINRA Exchange, Inc. (‘‘C2’’) (collectively, to examine the firm for compliance with bears responsibility under the Plan for ‘‘Participating Organizations’’ or the applicable financial responsibility overseeing and enforcing with respect to ‘‘parties’’). This Agreement amends and rules. On its face, Rule 17d–1 deals only CBOE or C2 members that are also restates the agreement entered into with an SRO’s obligations to enforce members of FINRA and the associated between FINRA, Cboe, and C2 on March member compliance with financial persons therewith. 21, 2014, entitled ‘‘Agreement Among responsibility requirements. Rule 17d–1 III. Proposed Amendment to the Plan Financial Industry Regulatory does not relieve an SRO from its Authority, Inc., Chicago Board Options obligation to examine a common On May 4, 2018, the parties submitted Exchange, Incorporated, and C2 Options member for compliance with its own a proposed amendment to the Plan Exchange, Incorporated Pursuant to rules and provisions of the federal (‘‘Amended Plan’’). The primary Rule 17d–2 under the Securities securities laws governing matters other purposes of the Amended Plan are to (1) Exchange Act of 1934,’’ and any than financial responsibility, including remove Cboe’s former equities trading subsequent amendments thereafter. sales practices and trading activities and facility, CBSX, from the Plan; (2) to the practices. extent that it becomes a member of I. Introduction To address regulatory duplication in either exchange, allocate regulatory Section 19(g)(1) of the Act,3 among these and other areas, the Commission responsibility to FINRA for Cboe’s and 10 other things, requires every self- adopted Rule 17d–2 under the Act. C2’s affiliated routing broker-dealer, regulatory organization (‘‘SRO’’) Rule 17d–2 permits SROs to propose Cboe Trading, Inc.; and (3) allocate registered as either a national securities joint plans for the allocation of surveillance, investigation, and exchange or national securities regulatory responsibilities with respect enforcement responsibilities for Rule association to examine for, and enforce to their common members. Under 14e-4 under the Act . The text of the compliance by, its members and persons paragraph (c) of Rule 17d–2, the proposed Amended Plan is as follows associated with its members with the Commission may declare such a plan (additions are italicized; deletions are Act, the rules and regulations effective if, after providing for notice [bracketed]): and comment, it determines that the thereunder, and the SRO’s own rules, * * * * * unless the SRO is relieved of this plan is necessary or appropriate in the responsibility pursuant to Section public interest and for the protection of Agreement Among Financial Industry 17(d) 4 or Section 19(g)(2) 5 of the Act. investors, to foster cooperation and Regulatory Authority, Inc., [Chicago Without this relief, the statutory coordination among the SROs, to Board Options Exchange, Incorporated] obligation of each individual SRO could remove impediments to, and foster the CBOE Exchange, Inc., and CBOE C2 [Options] Exchange, [Incorporated] Inc. result in a pattern of multiple 6 examinations of broker-dealers that 15 U.S.C. 78q(d)(1). Pursuant to Rule 17d–2 Under the 7 See Securities Act Amendments of 1975, Report Securities Exchange Act of 1934 maintain memberships in more than one of the Senate Committee on Banking, Housing, and SRO (‘‘common members’’). Such Urban Affairs to Accompany S. 249, S. Rep. No. 94– This Agreement, by and among regulatory duplication would add 75, 94th Cong., 1st Session 32 (1975). Financial Industry Regulatory 8 17 CFR 240.17d–1 and 17 CFR 240.17d–2, respectively. Authority, Inc. (‘‘FINRA’’), [the Chicago 1 15 U.S.C. 78q(d). 9 See Securities Exchange Act Release No. 12352 2 17 CFR 240.17d–2. (April 20, 1976), 41 FR 18808 (May 7, 1976). 11 See Securities Exchange Act Release No. 55755 3 15 U.S.C. 78s(g)(1). 10 See Securities Exchange Act Release No. 12935 (May 14, 2007), 72 FR 28087 (May 18, 2007). 4 15 U.S.C. 78q(d). (October 28, 1976), 41 FR 49091 (November 8, 12 See Securities Exchange Act Release No. 72137 5 15 U.S.C. 78s(g)(2). 1976). (May 9, 2014), 79 FR 27965 (May 15, 2014).

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Board Options Exchange, require FINRA to develop one or more the Rule 14e–4 of the Securities Incorporated]Cboe Exchange, Inc. new examination standards, modules, Exchange Act (‘‘Rule 14e–4’’), with a (‘‘[CBOE]Cboe’’), and Cboe C2 [Options] procedures, or criteria in order to focus on the standardized call option Exchange, [Incorporated]Inc. (‘‘C2’’) is analyze the application of the rule, or a provision of Rule 14e–4(a)(1)(ii)(D). made this [21st]4th day of [March, 2014] Common Member’s activity, conduct, or 2. Regulatory and Enforcement May, 2018 (the ‘‘Agreement’’), pursuant output in relation to such rule[; Responsibilities. FINRA shall assume to Section 17(d) of the Securities provided, however, Common Rules Regulatory Responsibilities and Exchange Act of 1934 (the ‘‘Exchange shall not include the application of SEC, Enforcement Responsibilities for Act’’) and Rule 17d–2 thereunder which CBOE, C2 or FINRA Rules as they Common Members. Attached as Exhibit permits agreements between self- pertain to violations of insider trading 1 to this Agreement and made part regulatory organizations to allocate activities, which is covered by a hereof, [CBOE]Cboe and C2 furnished regulatory responsibility to eliminate separate 17d–2 Agreement by and FINRA with a current list of Common regulatory duplication. FINRA, among the BATS Exchange, Inc., Rules and certified to FINRA that such [CBOE]Cboe and C2 may be referred to BATS–Y Exchange, Inc., CBOE, Chicago Rules are substantially similar to the individually as a ‘‘party’’ and together Stock Exchange, Inc., EDGA Exchange, corresponding FINRA Rule (the as the ‘‘parties.’’ Inc., EDGX Exchange, Inc., FINRA, ‘‘Certification’’). FINRA hereby agrees This Agreement amends and restates NASDAQ OMX BX, Inc., NASDAQ that the Rules listed in the Certification the agreement entered into between OMX PHLX LLC, The NASDAQ Stock are Common Rules as defined in this [NASD (n/k/a] FINRA[) and], Market LLC, National Stock Exchange, Agreement. Each year following the [CBOE]Cboe and C2 on [April 4, Inc., New York Stock Exchange, LLC, Effective Date of this Agreement, or 2007]March 21, 2014, entitled NYSE Amex LLC, and NYSE Arca Inc., more frequently if required by changes ‘‘Agreement [between NASD and effective December 16, 2011, as may be in the Rules of the parties, [CBOE]Cboe CBOE]Among Financial Industry amended from time to time]. Common and C2 shall submit an updated list of Regulatory Authority, Inc., Chicago Rules shall not include any provisions Common Rules to FINRA for review Board Options Exchange, Incorporated, regarding: (i) Notice, reporting or any which shall add [CBOE]Cboe or C2 and C2 Options Exchange, Incorporated other filings made directly to or from C2 Rules not included in the current list of Pursuant to Rule 17d–2 under the or Cboe; (ii) incorporation by reference Common Rules that qualify as Common Securities Exchange Act of 1934,’’ and of other C2 or Cboe Rules that are not Rules as defined in this Agreement; any subsequent amendments thereafter. Common Rules; (iii) exercise of delete [CBOE]Cboe or C2 Rules included WHEREAS, the parties desire to discretion in a manner that differs from in the current list of Common Rules that reduce duplication in the examination FINRA’s exercise of discretion no longer qualify as Common Rules as of their Common Members (as defined including, but not limited to exercise of defined in this Agreement; and confirm herein) and in the filing and processing exemptive authority by C2 or Cboe; (iv) that the remaining Rules on the current of certain registration and membership prior written approval of C2 or Cboe; list of Common Rules continue to be records as it relates to [the CBOE]Cboe and (v) payment of fees or fines to C2 [CBOE]Cboe or C2 Rules that qualify as [options exchange,]and C2 [options or Cboe. Common Rules as defined in this exchange and the CBOE equity (c) ‘‘Common Members’’ shall mean Agreement. Within 30 days of receipt of exchange facility operated by CBOE members of FINRA and at least one of such updated list, FINRA shall confirm Stock Exchange, LLC (‘‘CBSX’’)]; and [CBOE]Cboe or C2. in writing whether the Rules listed in WHEREAS, the parties desire to (d) ‘‘Effective Date’’ shall be the date any updated list are Common Rules as execute an agreement covering such this Agreement is approved by the defined in this Agreement. subjects pursuant to the provisions of Commission. Notwithstanding anything herein to the Rule 17d–2 under the Exchange Act and (e) ‘‘Enforcement Responsibilities’’ contrary, it is explicitly understood that to file such agreement with the shall mean the conduct of appropriate the term ‘‘Regulatory Responsibilities’’ Securities and Exchange Commission proceedings, in accordance with does not include, and [CBOE]Cboe and (the ‘‘SEC’’ or ‘‘Commission’’) for its FINRA’s Code of Procedure (the Rule C2 shall retain full responsibility for approval. 9000 Series) and other applicable (unless otherwise addressed by separate NOW, THEREFORE, in consideration FINRA procedural Rules, to determine agreement or rule) the following of the mutual covenants contained whether violations of pertinent laws, (collectively, the ‘‘Retained hereinafter, the parties hereby agree as rules or regulations have occurred, and Responsibilities’’): follows: if such violations are deemed to have (a) Surveillance and enforcement with 1. Definitions. Unless otherwise occurred, the imposition of appropriate respect to trading activities or practices defined in this Agreement or the context sanctions as specified under FINRA’s involving [CBOE]Cboe’s or C2’s own otherwise requires, the terms used in Code of Procedure and sanctions marketplace, including without this Agreement shall have the same guidelines. limitation [CBOE]Cboe’s or C2’s Rules meaning as they have under the (f) ‘‘Regulatory Responsibilities’’ shall relating to the rights and obligations of Exchange Act and the rules and mean the examination responsibilities market makers; regulations thereunder. As used in this and Enforcement Responsibilities (b) registration pursuant to their Agreement, the following terms shall relating to compliance by the Common applicable Rules of associated persons have the following meanings: Members with the Common Rules and (i.e., registration rules that are not (a) ‘‘Rule’’ of an ‘‘exchange’’ or an the provisions of the Exchange Act and Common Rules); ‘‘association’’ shall have the meaning the rules and regulations thereunder, (c) discharge of their duties and defined in Exchange Act Section and other applicable laws, rules and obligations as a Designated Examining 3(a)(27). regulations, each as set forth on Exhibit Authority pursuant to Rule 17d–1 under (b) ‘‘Common Rules’’ shall mean the 1 attached hereto. The term ‘‘Regulatory the Exchange Act; and [CBOE]Cboe Rules and C2 Rules that are Responsibility’’ shall also include the (d) any [CBOE]Cboe Rules and C2 substantially similar to the applicable surveillance, investigation and Rules that are not Common Rules, FINRA Rules in that examination for Enforcement Responsibilities relating to except Cboe Rules or C2 Rules for any compliance with such Rules would not compliance by Common Members with Cboe or C2 affiliate that is a member

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that operates as a facility (as defined in and enforcement proceedings in respect respecting the individuals listed in Section 3(a)(2) of the Exchange Act), thereto shall be conducted by FINRA as paragraph 8(a). acts as a router for Cboe or C2 and is provided hereinbefore; provided, (c) When as a result of processing a member of FINRA (‘‘Router Member’’) however, that in the event a Common such submissions FINRA becomes as provided in paragraph 6. As of the Member is the subject of an aware of a statutory disqualification as date of this Agreement, Cboe Trading, investigation relating to a transaction on defined in the Exchange Act with Inc. is the only Router Member. [the CBOE]Cboe or C2 options respect to a Common Member, FINRA 3. Common Members. Prior to the exchanges, [or the CBSX, CBOE]Cboe shall determine pursuant to Sections Effective Date, [CBOE]Cboe and C2 shall and C2 may in their discretion assume 15A(g) and/or Section 6(c) of the furnish FINRA with a current list of concurrent jurisdiction and Exchange Act the acceptability or Common Members, which shall be responsibility. With respect to apparent continued applicability of the person to updated no less frequently than once violations of any Cboe or C2 Rules by whom such disqualification applies and every six months. any Router Member, FINRA shall not keep [CBOE]Cboe and C2 advised of its 4. No Charge. There shall be no charge make referrals to Cboe or C2 pursuant actions in this regard for such to [CBOE]Cboe and C2 by FINRA for to this paragraph 6. Such apparent subsequent proceedings as [CBOE]Cboe performing the Regulatory violations shall be processed and and C2 may initiate. Responsibilities and Enforcement enforcement proceedings in respect (d) Notwithstanding the foregoing, Responsibilities under this Agreement thereto will be conducted, by FINRA as FINRA shall not review the membership except as hereinafter provided. FINRA provided in this Agreement. Each party application, reports, filings, fingerprint shall provide[CBOE]Cboe and C2 with agrees to make available promptly all cards, notices, or other writings filed to ninety (90) days advance written notice files, records and witnesses necessary to determine if such documentation in the event FINRA decides to impose assist the other in its investigation or submitted by a broker or dealer, or a any charges to [CBOE]Cboe and C2 for proceedings. person associated therewith or other performing the Regulatory 7. Continued Assistance. FINRA shall persons required to register or qualify by Responsibilities under this Agreement. make available to [CBOE]Cboe and C2 examination meets [the CBOE]Cboe or If FINRA determines to impose a charge, all information obtained by FINRA in C2 requirements for general membership or for specified categories [CBOE]Cboe and C2 shall have the right the performance by it of the Regulatory at the time of the imposition of such of membership or participation in the Responsibilities hereunder in respect to charge to terminate this Agreement; [CBOE]Cboe or C2. FINRA shall not the Common Members subject to this provided, however, that FINRA’s review applications or other Agreement. In particular, and not in Regulatory Responsibilities under this documentation filed to request a change limitation of the foregoing, FINRA shall Agreement shall continue until the in the rights or status described in this furnish [CBOE]Cboe and C2 any Commission approves the termination paragraph 8(d), including termination or information it obtains about Common of this Agreement. limitation on activities, of a member or Members which reflects adversely on 5. Reassignment of Regulatory a participant of [the CBOE]Cboe or C2, their financial condition. It is Responsibilities. Notwithstanding any or a person associated with, or provision hereof, this Agreement shall understood that such information is of requesting association with, a member be subject to any statute, or any rule or an extremely sensitive nature and, or participant of [the CBOE]Cboe or C2. order of the Commission, or industry accordingly, [CBOE]Cboe and C2 9. Branch Office Information. FINRA agreement, restructuring the regulatory acknowledge and agree to take all shall also be responsible for processing framework of the securities industry or reasonable steps to maintain its and, if required, acting upon all requests reassigning Regulatory Responsibilities confidentiality. [CBOE]Cboe and C2 for the opening, address changes, and between self-regulatory organizations. shall make available to FINRA any terminations of branch offices by To the extent such action is inconsistent information coming to their attention Common Members and any other with this Agreement, such action shall that reflects adversely on the financial applications required of Common supersede the provisions hereof to the condition of Common Members or Members with respect to the Common extent necessary for them to be properly indicates possible violations of Rules as they may be amended from effectuated and the provisions hereof in applicable laws, rules or regulations by time to time. Upon request, FINRA shall that respect shall be null and void. such firms. advise [CBOE]Cboe and C2 of the 6. Notification of Violations. In the 8. Common Member Applications. opening, address change and event that FINRA becomes aware of (a) Common Members subject to this termination of branch and main offices apparent violations of any [CBOE]Cboe Agreement shall be required to submit, of Common Members and the names of or C2 Rules, which are not listed as and FINRA shall be responsible for such branch office managers. Common Rules, discovered pursuant to processing and acting upon all 10. Customer Complaints. the performance of the Regulatory applications submitted on behalf of [CBOE]Cboe and C2 shall forward to Responsibilities assumed hereunder, allied persons, partners, officers, FINRA copies of all customer FINRA shall notify [CBOE]Cboe and C2 registered personnel and any other complaints involving Common of those apparent violations for such person required to be approved by the Members received by [CBOE]Cboe and response as [CBOE]Cboe and C2 deems Rules of the parties or associated with C2 relating to FINRA’s Regulatory appropriate. In the event, [CBOE]Cboe Common Members thereof. Upon Responsibilities under this Agreement. or C2 becomes aware of apparent request, FINRA shall advise It shall be FINRA’s responsibility to violations of any Common Rules, [CBOE]Cboe and C2 of any changes of review and take appropriate action in discovered pursuant to the Retained allied members, partners, officers, respect to such complaints. Responsibilities, [CBOE]Cboe and C2 registered personnel and other persons 11. Advertising. FINRA shall assume shall notify FINRA of those apparent required to be approved by the Rules of responsibility to review the advertising violations and such matters shall be the parties. of Common Members subject to the handled by FINRA as provided in this (b) Common Members shall be Agreement, provided that such material Agreement. Apparent violations of required to send to FINRA all letters, is filed with FINRA in accordance with Common Rules shall be processed by, termination notices or other material FINRA’s filing procedures and is

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accompanied with any applicable filing NASDAQ [OMX] PHLX LLC, Nasdaq to such liability, loss or damages as fees set forth in FINRA Rules. Such GMX, LLC, Nasdaq MRX, LLC, and Bats shall have been suffered by any party review shall be made in accordance EDGX Exchange, Inc. involving the and caused by the willful misconduct of with then applicable FINRA Rules and allocation of regulatory responsibilities another party or their respective interpretations. The advertising of with respect to common members for directors, governors, officers or Common Members shall be subject only compliance with common rules relating employees. No warranties, express or to compliance with appropriate FINRA to the conduct by broker-dealers of implied, are made by any party hereto Rules and interpretations. accounts for listed options or index with respect to any of the 12. No Restrictions on Regulatory warrants entered into on [April 25, responsibilities to be performed by them Action. Nothing contained in this 2012]January 13, 2017, and as may be hereunder. Agreement shall restrict or in any way amended from time to time; and (2) the 20. Relief from Responsibility. encumber the right of any party to multiparty Agreement made pursuant to Pursuant to Sections 17(d)(1)(A) and conduct its own independent or Rule 17d–2 of the Exchange Act among 19(g) of the Exchange Act and Rule 17d– concurrent investigation, examination NYSE [Amex]American LLC, 2 thereunder, FINRA, C2 and or enforcement proceeding of or against [BATS]Bats BZX Exchange, Inc., C2, [CBOE]Cboe join in requesting the Common Members, as any party, in its [CBOE]Cboe, [International Securities Commission, upon its approval of this sole discretion, shall deem appropriate Exchange]Nasdaq ISE, LLC, FINRA, Agreement, to relieve [CBOE]Cboe and or necessary. NYSE Arca, Inc., The NASDAQ Stock C2 of any and all responsibilities with 13. Termination. This Agreement may Market LLC, the BOX Options respect to matters allocated to FINRA be terminated by any party at any time Exchange, LLC, NASDAQ [OMX] BX, pursuant to this Agreement; provided, upon the approval of the Commission Inc., [and] NASDAQ [OMX] PHLX LLC, however, that this Agreement shall not after one (1) year’s written notice (or Nasdaq GMX, LLC, Nasdaq MRX, LLC, be effective until the Effective Date. such shorter time as may be agreed by Bats EDGX Exchange, Inc., Miami 21. Counterparts. This Agreement the parties) to the other parties, except International Securities Exchange, LLC, may be executed in one or more as provided in paragraph 4. and MIAX PEARL, LLC, involving the counterparts, each of which shall be 14. Effective Date. This Agreement allocation of regulatory responsibilities deemed an original, and such shall be effective upon approval of the with respect to SRO market surveillance counterparts together shall constitute Commission. 15. Arbitration. In the event of a of common members activities with one and the same instrument. dispute among the parties as to the regard to certain common rules relating * * * * * to listed options entered into on [April operation of this Agreement, the parties Exhibit 1 hereby agree that any such dispute shall 25, 2012]January 23, 2017, and as may be settled by arbitration in Washington, be amended from time to time. Exhibit 1 is deleted in its entirety and DC in accordance with the rules of the 17. Notification of Members. The replaced with the following: American Arbitration Association then parties shall notify Common Members of this Agreement after the Effective CBOE and C2 Certification of Common in effect, or such other procedures as the Rules parties may mutually agree upon. Date by means of a uniform joint notice. Judgment on the award rendered by the 18. Amendment. This Agreement may Cboe and C2 hereby certify that the arbitrator(s) may be entered in any court be amended in writing duly approved requirements contained in the Rules having jurisdiction. by each party. All such amendments listed below are identical to, or 16. Separate Agreement. This must be filed with and approved by the substantially similar to, the NASD/ Agreement is wholly separate from the Commission before they become FINRA or SEC Rules identified. following agreements: (1) The effective. # Common Rules shall not include multiparty Agreement made pursuant to 19. Limitation of Liability. None of any provisions regarding (i) notice, Rule 17d–2 of the Exchange Act among the parties nor any of their respective reporting or any other filings made [BATS]Bats BZX Exchange, Inc., BOX directors, governors, officers or directly to or from C2 or Cboe; (ii) Options Exchange, LLC, [CBOE]Cboe, employees shall be liable to any other incorporation by reference of other C2 C2, [the International Securities party to this Agreement for any liability, or Cboe Rules that are not Common Exchange]Nasdaq ISE, LLC, FINRA, loss or damage resulting from or Rules; (iii) exercise of discretion in a Miami International Securities claimed to have resulted from any manner that differs from FINRA’s Exchange, LLC, MIAX PEARL, LLC, [the delays, inaccuracies, errors or omissions exercise of discretion including, but not New York Stock Exchange, LLC,] NYSE with respect to the provision of limited to exercise of exemptive [Amex]American LLC, the NYSE Arca, Regulatory Responsibilities as provided authority by C2 or Cboe; (iv) prior Inc., The NASDAQ Stock Market LLC, hereby or for the failure to provide any written approval of C2 or Cboe; and (v) NASDAQ [OMX] BX, Inc., [and] such responsibility, except with respect payment of fees or fines to C2 or Cboe.

C2 rule(s) CBOE rule(s) NASD/FINRA or SEC rule(s)

3.4 Foreign Trading Permit Holders ...... NASD Rule 1090 Foreign Members. 3.4(a) Qualification and Registration ...... 3.6A(a) Qualification and Registration of Trad- NASD Rule 1031(a) Registration Require- ing Permit Holders and Associated Per- ments and NASD Rule 1060(a)(1)–(4)(A), sons #. (C) and (D) Persons Exempt from Registra- tion. 3.4(b) Qualification and Registration ...... 3.6A(b) Qualification and Registration of Trad- NASD Rule 1022(b) Categories of Principal ing Permit Holders and Associated Per- Registration. sons #. 3.4(c) Qualification and Registration ...... 3.6A(c) Qualification and Registration of Trad- NASD Rule 1022(a)(1)(C) Categories of Prin- ing Permit Holders and Associated Persons. cipal Registration. 1 3.4(e) Qualification and Registration ...... 3.6A(e) Qualification and Registration of Trad- NASD Rule 1021(c) Registration Require- ing Permit Holders and Associated Persons. ments.

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C2 rule(s) CBOE rule(s) NASD/FINRA or SEC rule(s)

3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- FINRA Rule 1010(c) Electronic Filing Require- tion and Policy .01. ing Permit Holders and Associated Per- ments for Uniform Forms and FINRA By- sons, Interpretations and Policies .01 and laws Article V, Sec. 2. .02. 3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- FINRA Rule 1250 Continuing Education Re- tions and Policies .03. ing Permit Holders and Associated Per- quirements. sons, Interpretations and Policies .04. 3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- NASD Rule 1070(d) Qualifications Examina- tion and Policy.04. ing Permit Holders and Associated Per- tions and Waiver Requirements. sons, Interpretation and Policy .05 #. 3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- NASD Rule 1021(a) and (b) Registration Re- tion and Policy .06. ing Permit Holders and Associated Per- quirements, NASD Rule 1022(a)(6), and sons, Interpretation and Policy .07 #. 1032(f) Categories of Representative Reg- istration. 3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- NASD Rule 1022(a)(6) Categories of Principal tion and Policy .07. ing Permit Holders and Associated Per- Registration. sons, Interpretation and Policy .08. 3.4 Qualification and Registration, Interpreta- 3.6A Qualification and Registration of Trad- NASD Rule 1031(a) Registration Require- tion and Policy .08. ing Permit Holders and Associated Per- ments and FINRA Bylaws Article V., Sec. 1. sons, Interpretation and Policy .09. 3.7(c) Certain Documents Required of Trading Exchange Act Rule 17f–2. Permit Holders, Applicants and Associated Persons. 3.7(d) Certain Documents Required of Trad- NASD Rule 1013(a)(2) New Member Applica- ing Permit Holders, Applicants and Associ- tion and Interview, and FINRA Bylaws Arti- ated Persons. cle IV, Sec. 1. Chapter 4 Business Conduct—CBOE Rule 4.1 4.1 Just and Equitable Principles of Trade ... FINRA Rule 2010 Standards of Commercial incorporated by reference. Honor and Principles of Trade. Chapter 4 Business Conduct—CBOE Rule 4.7 4.7 Manipulation ...... FINRA Rule 2020 Use of Manipulative, De- incorporated by reference. ceptive or Other Fraudulent Devices and FINRA Rule 6140 Other Trading Practices. Chapter 4 Business Conduct—CBOE Rule 4.18 Prevention of the Misuse of Material, Section 15(g) of the Securities Exchange Act 4.18 is incorporated by reference. Nonpublic Information #. of 1934 (Exchange Act) and FINRA Rule 3110(b)(1) and (d) Supervision. Chapter 4 Business Conduct—CBOE Rule 4.20 Anti-Money Laundering Compliance FINRA Rule 3310 Anti-Money Laundering 4.20 is incorporated by reference. Program. Compliance Program. 2 Chapter 9 Doing Business with the Public— 9.3A Continuing Education For Registered FINRA Rule 1250 Continuing Education Re- CBOE Rule 9.3A is incorporated by reference. Persons #. quirements. Chapter 9 Doing Business with the Public— 9.4(a) Other Affiliations of Registered Asso- FINRA Rule 3270 Outside Business Activities CBOE Rule 9.4(a) is incorporated by ref- ciated Persons. of Registered Persons. 3 erence. Chapter 9 Doing Business with the Public— 9.13 Statement of Financial Condition to Exchange Act Rule 17a–5. CBOE Rule 9.13 is incorporated by reference. Customers. Chapter 9 Doing Business with the Public— 9.16 Restrictions on Pledge and Lending of FINRA Rule 4330 Customer Protection—Per- CBOE Rule 9.16 is incorporated by reference. Customers’ Securities. missible Use of Customers’ Securities. Chapter 9 Doing Business with the Public— 9.20 Transfer of Accounts # ...... FINRA Rule 11870 Customer Account Trans- CBOE Rule 9.20 is incorporated by reference. fer Contracts. Chapter 9 Doing Business with the Public— 9.24 Telemarketing ...... FINRA Rule 3230 Telemarketing. CBOE Rule 9.24 is incorporated by reference. Chapter 9 Doing Business with the Public— 9.25 Borrowing From or Lending to Cus- FINRA Rule 3240 Borrowing From or Lending CBOE Rule 9.25 is incorporated by reference. tomers. to Customers. 1 FINRA shall have Regulatory Responsibilities to the extent the heighted qualification exam requirement of the Cboe and C2 rule is satisfied by the Series 24. 2 FINRA shall not have any Regulatory Responsibilities regarding the requirement to conduct independent testing during the first calendar year of a broker-dealer becoming a Trading Permit Holder or TPH organization; responsibility for such requirement remains with Cboe and C2, as ap- plicable. 3 FINRA shall not have any Regulatory Responsibilities regarding the requirement that the Trading Permit Holder provide prior written consent to the TPH organization; responsibility for such requirement remains with Cboe and C2, as applicable.

The following provisions are covered: • Rule 14e–4 of the Exchange Act— IV. Solicitation of Comments • Rule 200 of Regulation SHO— Prohibited Transactions in Interested persons are invited to Definition of Short Sales and Marking Connection with Partial Tender submit written data, views, and Requirements Offers ∧ arguments concerning the foregoing. • Rule 203 of Regulation SHO— • Regulation ATS Borrowing and Delivery Requirements Comments may be submitted by any of • Regulation S–P • Rule 204 of Regulation SHO—Close- the following methods: Out Requirement ∧ FINRA shall perform surveillance, Electronic Comments • Rule 105 of Regulation M—Short investigation and Enforcement Selling in Connection with a Public Responsibilities for SEA Rule 14e– • Use the Commission’s internet Offering 4(a)(1)(ii)(D). comment form (http://www.sec.gov/ • Section 14(e) of the Exchange Act rules/sro.shtml); or

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• Send an email to rule-comments@ Common Members that would The Commission is hereby declaring sec.gov. Please include File Number 4– otherwise be performed by Cboe, C2, effective an Amended Plan that, among 536 on the subject line. and FINRA. Accordingly, the proposed other things, allocates regulatory Amended Plan promotes efficiency by responsibility to FINRA for the Paper Comments reducing costs to Common Members. oversight and enforcement of all Cboe • Send paper comments in triplicate Furthermore, because Cboe, C2, and and C2 rules that are substantially to Secretary, Securities and Exchange FINRA will coordinate their regulatory similar to the rules of FINRA for Commission, 100 F Street NE, functions in accordance with the Common Members of Cboe and FINRA, Washington, DC 20549–1090. Amended Plan, the Amended Plan and C2 and FINRA. Therefore, All submissions should refer to File should promote investor protection. modifications to the Certification need Number 4–536. This file number should The Commission notes that, under the not be filed with the Commission as an be included on the subject line if email Amended Plan, Cboe, C2, and FINRA amendment to the Amended Plan, is used. To help the Commission have allocated regulatory responsibility provided that the Parties are only process and review your comments for those Cboe and C2 rules, set forth in adding to, deleting from, or confirming more efficiently, please use only one the Certification, that are substantially changes to Cboe or C2 rules in the method. The Commission will post all similar to the applicable FINRA rules in Certification in conformance with the comments on the Commission’s internet that examination for compliance with definition of Common Rules provided in website (http://www.sec.gov/rules/ such provisions and rules would not the Amended Plan. However, should the sro.shtml). Copies of the submission, all require FINRA to develop one or more Parties decide to add a Cboe or C2 rule subsequent amendments, all written new examination standards, modules, to the Certification that is not statements with respect to the proposed procedures, or criteria in order to substantially similar to a FINRA rule; plan that are filed with the Commission, analyze the application of the rule, or a delete a Cboe or C2 rule from the and all written communications relating Common Member’s activity, conduct, or Certification that is substantially similar to the proposed plan between the output in relation to such rule. In to a FINRA rule; or leave on the Commission and any person, other than addition, under the Amended Plan, Certification a Cboe or C2 rule that is no those that may be withheld from the FINRA would assume regulatory longer substantially similar to a FINRA public in accordance with the responsibility for certain provisions of rule, then such a change would provisions of 5 U.S.C. 552, will be the federal securities laws and the rules constitute an amendment to the available for website viewing and and regulations thereunder that are set Amended Plan, which must be filed printing in the Commission’s Public forth in the Certification. The Common with the Commission pursuant to Rule Reference Room, 100 F Street NE, Rules covered by the Amended Plan are 17d–2 under the Act.17 Washington, DC 20549, on official specifically listed in the Certification, as Under paragraph (c) of Rule 17d–2, business days between the hours of may be amended by the Parties from the Commission may, after appropriate 10:00 a.m. and 3:00 p.m. Copies of the time to time. notice and comment, declare a plan, or plan also will be available for inspection According to the Amended Plan, Cboe any part of a plan, effective. In this and copying at the principal offices of instance, the Commission believes that FINRA, Cboe, and C2. All comments and C2 will review the Certification, at least annually, or more frequently if appropriate notice and comment can received will be posted without change. take place after the proposed Persons submitting comments are required by changes in either the rules of Cboe, C2, or FINRA, and, if necessary, amendment is effective. The primary cautioned that we do not redact or edit purposes of the amendment are to personal identifying information from submit to FINRA an updated list of Common Rules to add Cboe and C2 remove Cboe’s former equities trading comment submissions. You should facility, CBSX, from the Plan; (2) to the submit only information that you wish rules not included on the then-current list of Common Rules that are extent that it becomes a member of to make available publicly. All either exchange, allocate regulatory submissions should refer to File substantially similar to FINRA rules; delete Cboe and C2 rules included in responsibility to FINRA for Cboe’s and Number 4–536 and should be submitted C2’s affiliated routing broker-dealer, on or before June 6, 2018. the then-current list of Common Rules that no longer qualify as common rules; Cboe Trading, Inc.; and (3) allocate V. Discussion and confirm that the remaining rules on surveillance, investigation, and enforcement responsibilities for Rule The Commission finds that the the list of Common Rules continue to be Cboe and C2 rules that qualify as 14e–4 under the Act . By declaring it proposed Amended Plan is consistent effective today, the Amended Plan can common rules.15 FINRA will then with the factors set forth in Section become effective and be implemented 13 confirm in writing whether the rules 17(d) of the Act and Rule 17d–2(c) without undue delay. The Commission 14 listed in any updated list are Common thereunder in that the proposed notes that the prior version of this plan Rules as defined in the Amended Plan. Amended Plan is necessary or immediately prior to this proposed Under the Amended Plan, Cboe and C2 appropriate in the public interest and amendment was published for comment will also provide FINRA with a current for the protection of investors, fosters and the Commission did not receive any list of Common Members and shall cooperation and coordination among comments thereon.18 update the list no less frequently than Furthermore, the SROs, and removes impediments to and Commission does not believe that the once every six months.16 The fosters the development of the national amendment to the plan raises any new market system. In particular, the Commission believes that these provisions are designed to provide for Commission believes that the proposed 17 The Commission also notes that the addition to Amended Plan should reduce continuing communication between the or deletion from the Certification of any federal unnecessary regulatory duplication by Parties to ensure the continued accuracy securities laws, rules, and regulations for which allocating to FINRA certain examination of the scope of the proposed allocation FINRA would bear responsibility under the of regulatory responsibility. Amended Plan for examining, and enforcing and enforcement responsibilities for compliance by, Common Members, also would constitute an amendment to the Amended Plan. 13 15 U.S.C. 78q(d). 15 See paragraph 2 of the Amended Plan. 18 See supra note 12 (citing to Securities 14 17 CFR 240.17d–2(c). 16 See paragraph 3 of the Amended Plan. Exchange Act Release No. 72137).

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regulatory issues that the Commission SUPPLEMENTARY INFORMATION: Notice is Incident Period: 04/13/2018 through has not previously considered. hereby given that as a result of the 04/16/2018. President’s major disaster declaration on VI. Conclusion DATES: Issued on 05/08/2018. 04/26/2018, Private Non-Profit Physical Loan Application Deadline This order gives effect to the organizations that provide essential Date: 07/09/2018. Amended Plan filed with the services of a governmental nature may Economic Injury (EIDL) Loan Commission in File No. 4–536. The file disaster loan applications at the Application Deadline Date: 02/08/2019. Parties shall notify all members affected address listed above or other locally ADDRESSES: Submit completed loan by the Amended Plan of their rights and announced locations. obligations under the Amended Plan. applications to: U.S. Small Business The following areas have been It is therefore ordered, pursuant to Administration, Processing and determined to be adversely affected by Section 17(d) of the Act, that the Disbursement Center, 14925 Kingsport Amended Plan in File No. 4–536, the disaster: Road, Fort Worth, TX 76155. between the FINRA, Cboe, and C2, filed Primary Counties: Boyd, Bullitt, Butler, FOR FURTHER INFORMATION CONTACT: A. pursuant to Rule 17d–2 under the Act, Caldwell, Campbell, Carlisle, Escobar, Office of Disaster Assistance, hereby is approved and declared Carroll, Carter, Crittenden, Fulton, U.S. Small Business Administration, effective. Gallatin, Grant, Graves, Greenup, 409 3rd Street SW, Suite 6050, It is further ordered that Cboe and C2 Hancock, Hardin, Henderson, Washington, DC 20416, (202) 205–6734. are relieved of those responsibilities Henry, Hickman, Jefferson, Kenton, SUPPLEMENTARY INFORMATION: Notice is allocated to FINRA under the Amended Lawrence, Livingston, McCracken, hereby given that as a result of the Plan in File No. 4–536. McLean, Metcalfe, Ohio, Owen, President’s major disaster declaration on For the Commission, by the Division of Spencer, Trigg, Trimble, Union, 05/08/2018, Private Non-Profit Trading and Markets, pursuant to delegated Washington, Webster. organizations that provide essential authority.19 The Interest Rates are: services of a governmental nature may Eduardo A. Aleman, file disaster loan applications at the Assistant Secretary. Percent address listed above or other locally [FR Doc. 2018–10369 Filed 5–15–18; 8:45 am] For Physical Damage: announced locations. BILLING CODE 8011–01–P Non-Profit Organizations with The following areas have been Credit Available Elsewhere ... 2.500 determined to be adversely affected by Non-Profit Organizations with- the disaster: SMALL BUSINESS ADMINISTRATION out Credit Available Else- Primary Areas: The City and County of where ...... 2.500 Honolulu and Kaua’i County. [Disaster Declaration #15520 and #15521; For Economic Injury: KENTUCKY Disaster Number KY–00068] Non-Profit Organizations with- The Interest Rates are: out Credit Available Else- Presidential Declaration of a Major where ...... 2.500 Percent Disaster for Public Assistance Only for the Commonwealth of Kentucky For Physical Damage: The number assigned to this disaster Non-Profit Organizations with AGENCY: U.S. Small Business for physical damage is 155206 and for Credit Available Elsewhere ... 2.500 Administration. economic injury is 155210. Non-Profit Organizations with- ACTION: Notice. (Catalog of Federal Domestic Assistance out Credit Available Else- Number 59008) where ...... 2.500 SUMMARY: This is a Notice of the For Economic Injury: Presidential declaration of a major James Rivera, Non-Profit Organizations with- disaster for Public Assistance Only for Associate Administrator for Disaster out Credit Available Else- the Commonwealth of Kentucky Assistance. where ...... 2.500 (FEMA–4361–DR), dated 04/26/2018. [FR Doc. 2018–10368 Filed 5–15–18; 8:45 am] Incident: Severe Storms, Tornadoes, BILLING CODE 8025–01–P The number assigned to this disaster Flooding, Landslides, and Mudslides. for physical damage is 155186 and for Incident Period: 02/21/2018 through economic injury is 155190. 03/21/2018. SMALL BUSINESS ADMINISTRATION (Catalog of Federal Domestic Assistance DATES: Issued on 04/26/2018. Number 59008) Physical Loan Application Deadline [Disaster Declaration #15518 and #15519; James Rivera, Date: 06/25/2018. HAWAII Disaster Number HI–00046] Economic Injury (EIDL) Loan Associate Administrator for Disaster Application Deadline Date: 01/28/2019. Presidential Declaration of a Major Assistance. Disaster for Public Assistance Only for [FR Doc. 2018–10372 Filed 5–15–18; 8:45 am] ADDRESSES: Submit completed loan the State of Hawaii applications to: U.S. Small Business BILLING CODE 8025–01–P Administration, Processing and AGENCY: U.S. Small Business Disbursement Center, 14925 Kingsport Administration. DEPARTMENT OF STATE Road, Fort Worth, TX 76155. ACTION: Notice. FOR FURTHER INFORMATION CONTACT: [Public Notice 10409] A. Escobar, Office of Disaster SUMMARY: This is a Notice of the Assistance, U.S. Small Business Presidential declaration of a major Overseas Security Advisory Council Administration, 409 3rd Street SW, disaster for Public Assistance Only for (OSAC) Meeting Notice Suite 6050, Washington, DC 20416, the State of Hawaii (FEMA–4365–DR), Closed Meeting (202) 205–6734. dated 05/08/2018. Incident: Severe Storms, Flooding, The Department of State announces a 19 17 CFR 200.30–3(a)(34). Landslides, and Mudslides. meeting of the U.S. State Department

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Overseas Security Advisory Council on prohibits imports of certain categories of government official of the harvesting June 6, 2018. Pursuant to Section 10(d) shrimp unless the President certifies to nation’s competent domestic fisheries of the Federal Advisory Committee Act the Congress by May 1, 1991, and authority. The Department has not (5 U.S.C. Appendix), 5 U.S.C. annually thereafter, that either: (1) The determined that any uncertified nation 552b(c)(4), and 5 U.S.C. 552b(c)(7)(E), it harvesting nation has adopted a qualifies to export shrimp or products has been determined that the meeting program governing the incidental taking from shrimp harvested in a manner as will be closed to the public. The of sea turtles in its commercial shrimp described in 7(A)(3). meeting will focus on an examination of fishery comparable to the program in corporate security policies and effect in the United States and has an Shrimp and products of shrimp procedures and will involve extensive incidental take rate comparable to that harvested with turtle excluder devices discussion of trade secrets and of the United States; or (2) the particular (‘‘TEDs’’) in an uncertified nation may, proprietary commercial information that fishing environment of the harvesting under specific circumstances, be eligible is privileged and confidential, and will nation does not pose a threat of the for importation into the United States discuss law enforcement investigative incidental taking of sea turtles. The under the DS–2031 Box 7(A)(2) techniques and procedures. The agenda President has delegated the authority to provision for ‘‘shrimp harvested by will include updated committee reports, make this certification to the commercial shrimp trawl vessels using a global threat overview, and other Department of State (‘‘the Department’’). TEDs comparable in effectiveness to matters relating to private sector The Department’s Revised Guidelines those required in the United States.’’ security policies and protective for the Implementation of Section 609 Use of this provision requires that the programs and the protection of U.S. were published in the Federal Register Department determine in advance that business information overseas. on July 8, 1999, at 64 FR 36946. the government of the harvesting nation For more information, contact Marsha On May 8, 2018, the Department has put in place adequate procedures to Thurman, Overseas Security Advisory certified 13 nations on the basis that monitor the use of TEDs in the specific their sea turtle protection programs are Council, U.S. Department of State, fishery in question and to ensure the comparable to that of the United States: Washington, DC 20522–2008, phone accurate completion of the DS–2031 571–345–2214. Colombia, Costa Rica, Ecuador, El Salvador, Gabon, Guatemala, Guyana, forms. At this time, the Department has Thomas G. Scanlon, Honduras, Mexico, Nicaragua, Nigeria, determined that only shrimp and Executive Director, Overseas Security Panama, and Suriname. The Department products from shrimp harvested in the Advisory Council, Department of State. also certified 26 shrimp-harvesting Northern Prawn Fishery, the [FR Doc. 2018–10426 Filed 5–15–18; 8:45 am] nations and one economy as having Queensland East Coast Trawl Fishery, BILLING CODE 4710–43–P fishing environments that do not pose a and the Torres Strait Prawn Fishery in danger to sea turtles. Sixteen nations Australia, in the French Guiana have shrimping grounds only in cold domestic trawl fishery, and in the East DEPARTMENT OF STATE waters where the risk of taking sea Coast fishery of peninsular Malaysia are [Public Notice 10410] turtles is negligible: Argentina, Belgium, eligible for entry under this provision. Canada, Chile, Denmark, Finland, The importation of TED-caught shrimp Bureau of Oceans and International Germany, Iceland, Ireland, the from any other uncertified nation will Environmental and Scientific Affairs Netherlands, New Zealand, Norway, not be allowed. A responsible Russia, Sweden, the United Kingdom, government official of Australia, France, ACTION: Annual certification of shrimp- and Uruguay. Ten nations and Hong harvesting nations. or Malaysia must sign in Block 8 of the Kong only harvest shrimp using small DS–2031 form accompanying these SUMMARY: On May 8, 2018, the boats with crews of less than five that imports into the United States. Department of State certified that 13 use manual rather than mechanical means to retrieve nets or catch shrimp In addition, the Department has shrimp-harvesting nations and five determined that shrimp and products fisheries have a regulatory program using other methods that do not from shrimp harvested in the Spencer comparable to that of the United States threaten sea turtles. Use of such small- Gulf region in Australia, with shrimp governing the incidental taking of the scale technology does not adversely baskets in Hokkaido, Japan, with relevant species of sea turtles in the affect sea turtles. The 10 nations are the ‘‘mosquito’’ nets in the Republic of course of commercial shrimp harvesting Bahamas, Belize, China, the Dominican and that the particular fishing Republic, Fiji, Jamaica, Oman, Peru, Sri Korea, and Mediterranean red shrimp environments of 26 shrimp-harvesting Lanka, and Venezuela. (Aristeus antennatus) and products from A completed DS–2031 Shrimp nations, one economy, and four fisheries that shrimp harvested in the Exporter’s/Importer’s Declaration must do not pose a threat of the incidental Mediterranean Sea by Spain may be accompany all shipments of shrimp or taking of covered sea turtles in the imported into the United States under products from shrimp into the United course of such harvesting. the DS–2031 Box 7(A)(4) provision for States. Only shrimp or products from ‘‘shrimp harvested in a manner or under DATES: This notice is applicable on May shrimp harvested in the 39 certified 16, 2018. circumstances determined by the nations and one economy listed above Department of State not to pose a threat FOR FURTHER INFORMATION CONTACT: may be accompanied by a DS–2031 with of the incidental taking of sea turtles.’’ Section 609 Program Manager, Office of Box 7(B) checked. All DS–2031 forms A responsible government official of Marine Conservation, Bureau of Oceans accompanying shrimp imports from Australia, Japan, the Republic of Korea, and International Environmental and uncertified nations must be originals or Spain must sign in Block 8 of the DS– Scientific Affairs, Department of State, with Box 7(A)(1), 7(A)(2), or 7(A)(4) 2201 C Street NW, Washington, DC checked, consistent with the form’s 2031 form accompanying these imports 20520–2758; telephone: (202) 647–3263; instructions with regard to the method into the United States. email: [email protected]. of harvest of the product and based on The Department has communicated SUPPLEMENTARY INFORMATION: Section any relevant prior determinations by the these certifications and determinations 609 of Public Law 101–162 (‘‘Sec. 609’’) Department, and signed by a responsible under Sec. 609 to the Office of

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International Trade of U.S. Customs and 94, required the FHWA Administrator, Issued on: May 9, 2018. Border Protection. on behalf of the Secretary, to establish Brandye L. Hendrickson, a MAC. The MAC is responsible for Acting Administrator, Federal Highway William Gibbons-Fly, providing advice and making Administration. Acting Deputy Assistant Secretary of State recommendations concerning for Oceans and Fisheries, Bureau of Oceans [FR Doc. 2018–10416 Filed 5–15–18; 8:45 am] and International Environmental and infrastructure issues related to BILLING CODE 4910–22–P Scientific Affairs, Department of State. motorcyclist safety, including barrier [FR Doc. 2018–10432 Filed 5–15–18; 8:45 am] design; road design, construction, and maintenance practices; and the DEPARTMENT OF TRANSPORTATION BILLING CODE 4710–09–P architecture and implementation of intelligent transportation system Federal Motor Carrier Safety Administration DEPARTMENT OF TRANSPORTATION technologies. On July 28, 2017, the Secretary of Transportation appointed [Docket No. FMCSA–2018–0120] Federal Highway Administration 10 members to the MAC, and on December 5, 2017, the MAC held its first Agency Information Collection [Docket No. FHWA–2017–0043] meeting in Washington, DC. Activities; Revision of an Information Tentative Agenda: The agenda will Collection: Financial Responsibility, Motorcyclist Advisory Council to the Trucking and Freight Forwarding Federal Highway Administration include a topical discussion of the infrastructure issues described above, AGENCY: Federal Motor Carrier Safety AGENCY: Federal Highway namely: Barrier design; road design, Administration (FMCSA), DOT. Administration (FHWA), U.S. construction, and maintenance ACTION: Department of Transportation. Notice and request for practices; and the architecture and comments. ACTION: Notice of public meeting. implementation of intelligent transportation system technologies. SUMMARY: In accordance with the SUMMARY: This notice announces the Paperwork Reduction Act of 1995, Public Participation: This meeting second meeting of the Motorcyclist FMCSA announces its plan to submit will be open to the public. Members of Advisory Council (MAC) to the FHWA. the Information Collection Request (ICR) the public who wish to attend are asked The purpose of this meeting is to advise described below to the Office of to send an email to MAC-FHWA@ the Secretary of Transportation, through Management and Budget (OMB) for its dot.gov no later than May 26, 2018, in the Administrator of the FHWA, on revision and approval and invites public order to receive access information for infrastructure issues of concern to comment. The ICR is related to Form motorcyclists, including barrier design; the Web conference room. The BMC–32 titled, ‘‘Endorsement for road design, construction, and Designated Federal Official and the Household Goods Motor Carrier Policies maintenance practices; and the Chair of the Committee will conduct the of Insurance for Cargo Liability Under architecture and implementation of meeting to facilitate the orderly conduct 49 U.S.C. 13906.’’ intelligent transportation system of business. If you would like to file a DATES: We must receive your comments technologies, pursuant to the Fixing written statement with the Committee, on or before July 16, 2018. America’s Surface Transportation you may do so either before or after the (FAST) Act. meeting by submitting an electronic ADDRESSES: You may submit comments identified by Federal Docket DATES: The MAC will convene virtually, copy of that statement to MAC-FHWA@ Management System (FDMS) Docket via Web conference connection, from dot.gov or the specific docket page at: Number FMCSA–2018–0120 using any 9:00 a.m. to 1:00 p.m. EST on Thursday, www.regulations.gov. If you would like to make oral statements regarding any of of the following methods: June 7, 2018. • Federal eRulemaking Portal: http:// the items on the agenda, you should ADDRESSES: The meeting will take place www.regulations.gov. Follow the online contact Mr. Michael Griffith at the online. There is no physical address for instructions for submitting comments. this meeting. phone number listed above or email • Fax: 1–202–493–2251. FOR FURTHER INFORMATION CONTACT: Mr. your request to MAC–[email protected]. • Mail: Docket Operations; U.S. Michael Griffith, the Designated Federal You must make your request for an oral Department of Transportation, 1200 Official, Office of Safety, 202–366–2829, statement at least 5 business days prior New Jersey Avenue SE, West Building, ([email protected]) or Ms. Guan Xu, to the meeting. Reasonable provisions Ground Floor, Room W12–140, 202–366–5892, ([email protected]) will be made to include any such Washington, DC 20590–0001. Federal Highway Administration, 1200 presentation on the agenda. Public • Hand Delivery or Courier: U.S. New Jersey Avenue SE, Washington, DC comment will be limited to 3 minutes Department of Transportation, 1200 20590. per speaker, per topic. New Jersey Avenue SE, West Building, SUPPLEMENTARY INFORMATION: Services for Individuals with Ground Floor, Room W12–140, Disabilities: Individuals requiring Washington, DC, 20590–0001 between 9 Electronic Access special accommodations are asked to a.m. and 5 p.m. e.t., Monday through An electronic copy of this notice may note this when they send an email about Friday, except Federal holidays. be downloaded from the Federal attending to [email protected] by Instructions: All submissions must Register’s home page at: http:// May 26, 2018. include the Agency name and docket number. For detailed instructions on www.archives.gov; the Government Minutes: An electronic copy of the Publishing Office’s database at: https:// submitting comments, see the Public minutes from all meetings will be Participation heading below. Note that www.gpo.gov/fdsys/; or the specific available for download within 60 days docket page at: www.regulations.gov. all comments received will be posted of the conclusion of the meeting at: without change to http:// Background https://safety.fhwa.dot.gov/ www.regulations.gov, including any Purpose of the Committee: Section motorcycles/. personal information provided. Please 1426 of the FAST Act, Public Law 114– Authority: Section 1426 of Pub. L. 114–94. see the Privacy Act heading below.

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Docket: For access to the docket to cargo insurance policies, but it is not DEPARTMENT OF TRANSPORTATION read background documents or filed with the FMCSA. Federal Railroad Administration comments received, go to http:// The Agency is seeking approval for www.regulations.gov, and follow the use of Form BMC–32 titled, [Docket Number FRA–2006–23686] online instructions for accessing the ‘‘Endorsement for Household Goods dockets, or go to the street address listed Motor Carrier Policies of Insurance for above. Petition for Approval of Product Safety Cargo Liability Under 49 U.S.C. 13906.’’ Plan Privacy Act: In accordance with 5 Previously, Form BMC–32 was included U.S.C. 553(c), DOT solicits comments as part of the collection covered by Under part 211 of Title 49 Code of from the public to better inform its OMB Control Number 2126–0017 Federal Regulations (CFR), this rulemaking process. DOT posts these (‘‘Financial Responsibility, Trucking document provides the public notice comments, without edit, including any and Freight Forwarding’’). The last that on May 4, 2018, BNSF Railway personal information the commenter Notice of OMB Action providing Company (BNSF), with participating provides, to www.regulations.gov, as approval of the BMC–32 form under railroads Union Pacific Railroad (UP) described in the system of records OMB Control Number 2126–0017 was and Canadian Pacific Railway (CP), notice (DOT/ALL–14 FDMS), which can February 23, 2006, with an expiration petitioned the Federal Railroad be reviewed at www.dot.gov/privacy. date of February 28, 2009. Because Administration (FRA) for approval of a Public Participation: The Federal 2126–0017 was recently renewed Product Safety Plan (PSP) pursuant to 49 CFR 236.907(a). FRA assigned the eRulemaking Portal is available 24 without including Form BMC–32, petition Docket Number FRA–2006– hours each day, 365 days each year. You FMCSA is seeking approval of the form, can obtain electronic submission and 23686. with the intent of combining this retrieval help and guidelines under the BNSF, with participant railroads UP approval with OMB Control Number ‘‘help’’ section of the Federal and CP, request FRA approval of a PSP 2126–0017. eRulemaking Portal website. If you want for the Dual Radar Roadway Vehicle us to notify you that we received your Title: Financial Responsibility, Detector (VDR24). The VDR24, supplied comments, please include a self- Trucking and Freight Forwarding. by Island Radar, is used as a vehicle addressed, stamped envelope or OMB Control Number: 2126–0017. detection subsystem for four-quadrant postcard, or print the acknowledgement gate crossing warning systems, with its Type of Request: Revision of an page that appears after submitting intended application as an alternative to approved ICR. comments online. Comments received inductive loop vehicle detectors. after the comment closing date will be Respondents: Household goods The petition asserts that this PSP included in the docket and will be carriers and household goods freight addresses all requirements of 49 CFR considered to the extent practicable. forwarders. 236.907(a). FOR FURTHER INFORMATION CONTACT: Jeff Estimated Number of Respondents: A copy of the petition, as well as any Secrist, Office of Registration & Safety 4,773. written communications concerning the Information, Department of petition, is available for review online at Estimated Time per Response: 10 www.regulations.gov and in person at Transportation, Federal Motor Carrier minutes. Safety Administration, West Building the U.S. Department of Transportation’s Expiration Date: May 31, 2020. 6th Floor, 1200 New Jersey Avenue SE, (DOT) Docket Operations Facility, 1200 Washington, DC 20590. Telephone: Frequency of Response: On occasion. New Jersey Avenue SE, W12–140, Washington, DC 20590. The Docket 202–385–2367; email jeff.secrist@ Estimated Total Annual Burden: 796 dot.gov. × Operations Facility is open from 9 a.m. hours [4,773 respondents 10 minutes to 5 p.m., Monday through Friday, SUPPLEMENTARY INFORMATION: per response]. except Federal Holidays. Background: The Secretary of Public Comments Invited: You are Interested parties are invited to Transportation (Secretary) is authorized asked to comment on any aspect of this participate in these proceedings by to register for-hire motor carriers of information collection, including: (1) submitting written views, data, or property and passengers under the Whether the proposed collection is comments. FRA does not anticipate provisions of 49 U.S.C. 13902, surface necessary for the performance of scheduling a public hearing in freight forwarders under the provisions FMCSA’s functions; (2) the accuracy of connection with these proceedings since of 49 U.S.C. 13903, and property brokers the estimated burden; (3) ways for the facts do not appear to warrant a under the provisions of 49 U.S.C. 13904. FMCSA to enhance the quality, hearing. If any interested parties desire These persons may conduct usefulness, and clarity of the collected an opportunity for oral comment and a transportation services only if they are information; and (4) ways that the public hearing, they should notify FRA, registered pursuant to 49 U.S.C. 13901. burden could be minimized without in writing, before the end of the The Secretary has delegated authority reducing the quality of the collected comment period and specify the basis pertaining to these registration information. The agency will summarize for their request. requirements to the FMCSA. The or include your comments in the request All communications concerning these registration remains valid only if these for OMB’s clearance of this information proceedings should identify the transportation entities maintain, on file collection. appropriate docket number and may be with the FMCSA, evidence of the submitted by any of the following Issued under the authority of 49 CFR 1.87 required levels of financial methods: on: May 9, 2018. responsibility pursuant to 49 U.S.C. • Website: http:// 13906. FMCSA regulations governing G. Kelly Regal, www.regulations.gov. Follow the online the financial responsibility Associate Administrator for Office of instructions for submitting comments. requirements for these entities are found Research and Information Technology. • Fax: 202–493–2251. at 49 CFR part 387. Form BMC–32 is an [FR Doc. 2018–10439 Filed 5–15–18; 8:45 am] • Mail: Docket Operations Facility, endorsement that must be attached to BILLING CODE 4910–EX–P U.S. Department of Transportation, 1200

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New Jersey Avenue SE, W12–140, specific information in its petition. fulfills the requirements of the January Washington, DC 20590. Therefore, no confidential information 1995 European vehicle insurance • Hand Delivery: 1200 New Jersey provided for purposes of this notice has companies. In further addressing the Avenue SE, Room W12–140, been disclosed. reliability and durability of its device, Washington, DC 20590, between 9 a.m. DATES: The exemption granted by this BMW provided information on the and 5 p.m., Monday through Friday, notice is effective beginning with the uniqueness of its mechanical keys to be except Federal Holidays. 2019 model year (MY). used on the 8 series vehicle line. Communications received by July 2, FOR FURTHER INFORMATION CONTACT: Ms. Specifically, BMW stated that the 2018 will be considered by FRA before Carlita Ballard, Office of International vehicle’s mechanical keys are unique final action is taken. Comments received Policy, Fuel Economy and Consumer because they require a special key after that date will be considered if Programs, National Highway Traffic blank, cutting machine and a unique practicable. Safety Administration, West Building, vehicle code to allow for key Anyone can search the electronic Room W43–439, 1200 New Jersey duplication. BMW also stated that the form of any written communications Avenue SE, Washington, DC 20590. Ms. mechanical keys cannot be used to and comments received into any of our Ballard’s telephone number is 202–366– deactivate the device but that activation dockets by the name of the individual 5222. Her fax number is 202–493–2990. must be done electronically. BMW submitting the comment (or signing the further stated that the new keys will SUPPLEMENTARY INFORMATION: document, if submitted on behalf of an In a only be issued to authorized persons association, business, labor union, etc.). petition dated January 12, 2018, BMW and will incorporate special guide-way Under 5 U.S.C. 553(c), DOT solicits requested an exemption from the parts- millings, making the locks almost comments from the public to better marking requirements of the Theft impossible to pick and the keys inform its processes. DOT posts these Prevention Standard for the 8 series impossible to duplicate on the open comments, without edit, including any vehicle line beginning with MY 2019. market. personal information the commenter The petition requested an exemption BMW stated that activation of its provides, to www.regulations.gov, as from parts-marking pursuant to 49 CFR antitheft device occurs automatically described in the system of records part 543, Exemption from Vehicle Theft when the engine is shut off and the notice (DOT/ALL–14 FDMS), which can Prevention Standard, based on the vehicle key is removed from the ignition be reviewed at https:// installation of an antitheft device as system. BMW stated that a transponder www.transportation.gov/privacy. See standard equipment for the entire (transmitter/receiver) in the radio also https://www.regulations.gov/ vehicle line. frequency remote control communicates privacyNotice for the privacy notice of Under 49 CFR part 543.5(a), a with the EWS (BDC) control unit regulations.gov. manufacturer may petition NHTSA to providing the interface to the loop grant an exemption for one vehicle line antenna (coil), engine control unit and Robert C. Lauby, per model year. In its petition, BMW starter. After an initial starting value, Associate Administrator for Railroad Safety, provided a detailed description and the authentication uses the challenge Chief Safety Officer. diagram of the identity, design, and response technique with symmetric [FR Doc. 2018–10444 Filed 5–15–18; 8:45 am] location of the components of the secret key. BMW further stated that BILLING CODE 4910–06–P antitheft device for its 8 series vehicle when the control unit identifies the line. BMW stated that its 8 series correct release signal, the ignition signal vehicle line will be installed with a and fuel supply are released allowing DEPARTMENT OF TRANSPORTATION passive, electronically-coded, vehicle operation of the vehicle. immobilizer system (EWS) as standard BMW also stated that the vehicle is National Highway Traffic Safety equipment that will prevent the vehicle equipped with a central-locking system Administration from being driven away under its own that can be operated to lock and unlock engine power. Key features of the Petition for Exemption From the all doors or to unlock only the driver’s antitheft device will include a remote- Federal Motor Vehicle Theft Prevention door, preventing forced entry into the control w/mechanical key, ring antenna vehicle through the passenger doors. Standard; BMW of North America, LLC (transponder coil), low frequency BMW further stated that the vehicle can AGENCY: National Highway Traffic antenna (LF), engine control unit (DME/ be further secured by locking the doors Safety Administration (NHTSA), DDE) with encoded start release input, and hood using either the key-lock Department of Transportation (DOT). a passive immobilizer, and an EWS cylinder on the driver’s door or the ACTION: Grant of petition for exemption. (BDC) control unit. BMW also stated remote frequency remote control. BMW that it will not offer an audible or visible stated that the frequency for the remote SUMMARY: This document grants in full alarm feature on the proposed device. control constantly changes to prevent an the BMW of North America, LLC’s BMW’s submission is considered a unauthorized person from opening the (BMW) petition for exemption of the 8 complete petition as required by 49 CFR vehicle by intercepting the signals of its series vehicle line in accordance with 543.7, in that it meets the general remote control. Exemption from the Theft Prevention requirements contained in § 543.5 and BMW further stated that all of its Standard. This petition is granted the specific content requirements of vehicles are currently equipped with because the Agency has determined that § 543.6. antitheft devices as standard equipment, the antitheft device to be placed on the In addressing the specific content including its 8 series vehicle line. BMW vehicle line as standard equipment is requirements of Part 543.6, BMW compared the effectiveness of its likely to be as effective in reducing and provided information on the reliability antitheft device with devices which deterring motor vehicle theft as and durability of its device. To ensure NHTSA has previously determined to be compliance with the parts-marking reliability and durability of its device, as effective in reducing and deterring requirements of the Federal Motor BMW stated that it conducted tests on motor vehicle theft as would Vehicle Theft Prevention Standard the antitheft device which complied compliance with the parts-marking (Theft Prevention Standard). BMW also with its own specific standards. BMW requirements of part 541. Specifically, requested confidential treatment for further stated that its antitheft device BMW has installed its antitheft device

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on its X1 (MPV and passenger cars), X2, vehicle line from the parts-marking DEPARTMENT OF TRANSPORTATION X3, X4 and X5 vehicle lines, as well as requirements of 49 CFR part 541. The its Carline 1, 3, 4, 5, 6, 7, Z4, MINI and Agency notes that 49 CFR part 541, National Highway Traffic Safety MINI Countryman vehicle lines, all Appendix A–1, identifies those lines Administration which have been granted parts-marking that are exempted from the Theft [Docket No. NHTSA–2018–0052] exemptions by the Agency. BMW asserts Prevention Standard for a given MY. 49 that theft data have indicated a decline CFR part 543.7(f) contains publication Denial of Motor Vehicle Defect Petition, in theft rates for vehicle lines that have requirements incident to the disposition DP17–002 been equipped with antitheft devices of all Part 543 petitions. Advanced similar to that which it proposes to AGENCY: National Highway Traffic listing, including the release of future install on the 8 series vehicle line. BMW Safety Administration (NHTSA), product nameplates, the beginning stated that for MY/CY 2014, the Department of Transportation (DOT). Agency’s data show that the theft rates model year for which the petition is ACTION: Denial of petition for a defect for its vehicle lines are: 0.47 (2-series), granted and a general description of the investigation. 0.91 (3-series), 0.80 (4-series), 0.90 (5- antitheft device is necessary in order to SUMMARY: This document denies a series), 1.83 (6-series) 2.85 (7-series), notify law enforcement agencies of new January 11, 2017, petition, as submitted 0.30 (X1), 0.60 (X3), 0.00 (X5), 0.43 (Z4), vehicle lines exempted from the parts- under Office of Defects Investigation 0.00 (i3), 0.00 (i8) and 0.41 (MINI marking requirements of the Theft (ODI) ID number 10944318, from Ms. Cooper). Using an average of 3 MYs data Prevention Standard. Laura Nagel of Springfield, VA, (2012–2014), NHTSA’s theft rates for If BMW decides not to use the requesting that the agency open an BMW’s 2 series, 3 series, 4 series, 5 exemption for this line, it must formally series, 6 series, 7 series, X1, X3, X5, Z4, investigation into an alleged defect notify the Agency. If such a decision is resulting in engine stall without i3, i8 and MINI Cooper vehicle lines are made, the line must be fully marked as 0.7416, 0.7566, 0.8041, 1.0805, 2.5509, warning after refueling in a model year required by 49 CFR parts 541.5 and (MY) 2007 Jeep Patriot. The petitioner’s 2.0632, 0.2672, 0.6117, 0.0000, 0.8159, 541.6 (marking of major component 0.0000, 0.0000 and 0.2379 respectively, vehicle is a 2007 Jeep Patriot. The parts and replacement parts). all below the median theft rate of National Highway Traffic Safety 3.5826. NHTSA notes that if BMW wishes in Administration (NHTSA) evaluated the Based on the supporting evidence the future to modify the device on petition by analyzing consumer submitted by BMW, the Agency believes which this exemption is based, the complaints submitted to the Agency, by that the antitheft device for the BMW 8 company may have to submit a petition reviewing two prior evaluations of the series vehicle line is likely to be as to modify the exemption. same apparent defect issue, and by reviewing technical and field effective in reducing and deterring Part 543.7(d) states that a Part 543 motor vehicle theft as compliance with information provided by FCA US, LLC exemption applies only to vehicles that the parts-marking requirements of the (FCA) in response to an information Theft Prevention Standard (49 CFR part belong to a line exempted under this request letter from the Agency. After 541). The Agency concludes that the part and equipped with the antitheft completing this evaluation, NHTSA has device will provide four of the five device on which the line’s exemption is concluded that further investigation of types of performance listed in based. Further, § 543.9(c)(2) provides for the alleged defect in the subject vehicles § 543.6(a)(3): Promoting activation; the submission of petitions ‘‘to modify is unlikely to result in a determination preventing defeat or circumvention of an exemption to permit the use of an that a safety related defect exists. The the device by unauthorized persons; antitheft device similar to but differing agency accordingly denies the petition. preventing operation of the vehicle by from the one specified in that FOR FURTHER INFORMATION CONTACT: Dr. unauthorized entrants; and ensuring the exemption.’’ Abhijit Sengupta, Office of Defects reliability and durability of the device. The Agency wishes to minimize the Investigation, NHTSA, 1200 New Jersey Pursuant to 49 U.S.C. 33106 and 49 administrative burden that Part Avenue SE, Washington, DC 20590. CFR 543.7 (b), the Agency grants a 543.9(c)(2) could place on exempted Telephone: (202) 366–4293. petition for exemption from the parts- vehicle manufacturers and itself. The SUPPLEMENTARY INFORMATION: marking requirements of Part 541, either in whole or in part, if it determines that, Agency did not intend Part 543 to Alleged Defect based upon supporting evidence, the require the submission of a modification The petitioner alleges that her MY standard equipment antitheft device is petition for every change to the 2007 Jeep Patriot vehicle experienced likely to be as effective in reducing and components or design of an antitheft multiple incidents of engine stall deterring motor vehicle theft as device. The significance of many such without warning shortly after refueling. compliance with the parts-marking changes could be de minimis. Therefore, The petitioner discovered that the requirements of part 541. The Agency NHTSA suggests that if the defective part is a valve that is integral finds that BMW has provided adequate manufacturer contemplates making any to the fuel tank, requiring tank reasons for its belief that the antitheft changes the effects of which might be replacement to repair the problem. The device for the 8 series vehicle line is characterized as de minimis, it should petitioner alleged that stalling without likely to be as effective in reducing and consult the Agency before preparing and warning is an unreasonable risk to deterring motor vehicle theft as submitting a petition to modify. motor vehicle safety and requests the compliance with the parts-marking Issued in Washington, DC, under authority agency take action by opening a requirements of the Theft Prevention delegated in 49 CFR Part 1.95 and 501.8. Preliminary Evaluation to fully evaluate Standard (49 CFR part 541). This the defect. conclusion is based on the information Raymond R. Posten, BMW provided about its device. Associate Administrator for Rulemaking. Engine Stall Defects For the foregoing reasons, the Agency [FR Doc. 2018–10428 Filed 5–15–18; 8:45 am] The Safety Act, (Chapter 301 of Title hereby grants in full BMW’s petition for BILLING CODE 4910–59–P 49 of the United States Code (49 U.S.C. exemption for the MY 2019 8 series 30101 et. seq.)) defines motor vehicle

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safety as ‘‘the performance of a motor without a finding of a defect due to the be available in the near future at https:// vehicle or motor vehicle equipment in low safety risk associated with the www.NHTSA.gov. a way that protects the public against alleged defect condition. Further details ODI’s complaint analysis of the unreasonable risk of accidents occurring of the investigation are available at alleged defect, completed in March because of the design, construction, or https://www.NHTSA.gov. 2017, identified 39 post-refueling engine performance of a motor vehicle, and stall incidents in approximately 29,573 Prior ODI Petition DP14–002 against unreasonable risk of death or vehicles. Similar to the LX Car analysis injury in an accident, and includes In response to ODI’s information in PE13–016, and 2007 Chrysler nonoperational safety of a motor request letter for DP14–002, FCA Minivans analysis in DP14–002, the vehicle.’’ In this instance, the risk indicated that the RS Minivan may engine stalls occurred immediately after involved is a low speed engine stall experience MFCV float sticking similar refueling when the vehicle was stopped happening immediately after the fuel to that investigated in PE13–016 and or coasting to a stop at low speed. There tank is overfilled. NHTSA considers described above. Further details of the were no allegations of significant several factors when assessing the safety investigation are available at https:// difficulty restarting the engines risk posed by conditions that may result www.NHTSA.gov. immediately after the stalls occurred. in engine stall while driving. These As part of its evaluation of DP14–002, None of the complaints alleged any include the speeds at which stalling NHTSA’s Vehicle Research and Test crash or injury. Based upon the above may occur, the ability of the driver to Center (VRTC) tested a 2005 Chrysler facts and the conditions in which any restart the vehicle, the warning available Town & Country LMT (3.6L SFI, 20 gal. stall occurs, ODI concludes that further to the driver prior to stalling, the effects fuel tank) that was the subject of an ODI investigation is unlikely to result in a of engine stall on vehicle controllability, complaint (VOQ 10641603) and proved finding that a defect related to motor when and where the stalling may occur the vehicle was affected by the sticking vehicle safety exists. and the effects of the condition on other in-tank fuel valve. VRTC’s examination Conclusion safety systems of the vehicle. In general, assessed engine performance after conditions that result in engine stall refueling, including the driving In the Agency’s view, additional during low-speed operation at idle, such conditions and ease of engine restart investigation is unlikely to result in a as when slowing to a stop, and where associated with any observed engine finding that a defect related to motor the engine may be restarted right away, stalls. When refueling the vehicle up to vehicle safety exists given the limited are considered by NHTSA to be among the initial shut-off of the filling station conditions under which the subject the least hazardous types of stalling pump nozzle, the VRTC testing was able condition may result in engine stall. problems and, absent other risk factors, to reproduce stalling incidents when the Although NHTSA can and will take are not considered to be unreasonable vehicle was stopped or coasting to a action before a defect results in a crash, risks to safety. stop at low speed. The vehicle did not injury or death, the absence of any Prior ODI Investigation PE13–016 stall 4 out of 5 times when travelling at reported crashes or injuries in a fleet of 5 mph, but minor hesitation was noted. nearly 30,000 vehicles estimated to have On February 10, 2014, ODI closed an driven 4 billion vehicle miles indicates investigation of an alleged defect in No stalls and only minor hesitation occurred when travelling at 10 mph or that further investigation is not approximately 153,817 MY 2006 warranted under the facts known to the Chrysler 300, Dodge Charger and Dodge above in tanks filled to the initial nozzle shut-off. Stalling was more likely to Agency at this time. Therefore, in view Magnum vehicles (LX cars) that may of the need to allocate and prioritize result in engine stall shortly after occur if the tank was overfilled (i.e., NHTSA’s limited resources to best refueling (PE13–016). In response to adding fuel past the initial fill nozzle accomplish the agency’s safety mission, ODI’s information request for PE13–016, shutoff). Testing after overfilling the petition is denied. The Agency will FCA identified a problem with the resulted in stalls in 4 of 5 tests at speeds take further action if warranted by multifunction control valve (MFCV) fuel up to 10 mph. Regardless of fill future circumstances. shutoff float integrated into 19-gallon condition, the vehicle could always be fuel tanks in certain LX vehicles. immediately restarted after each engine Authority: 49 U.S.C. 30162(d); delegations According to FCA, the float may swell stall. of authority at CFR 1.50 and 501.8. after exposure to fuels with high ethanol 2008 Jeep Patriot Analysis Jeffrey M. Giuseppe, content, which may cause the valve to Associate Administrator for Enforcement. stick. A float valve that is stuck open In response to ODI’s information [FR Doc. 2018–10404 Filed 5–15–18; 8:45 am] during refueling could result in fuel request letter for DP17–002, FCA tank overfill and allow raw fuel to enter indicated that the 2007 Jeep Patriot may BILLING CODE 4910–59–P the purge line and vapor canister. This experience a condition with MFCV float sticking similar to the one investigated could result in problems with engine DEPARTMENT OF TRANSPORTATION drivability (e.g., stumble or hesitation) in the LX Cars in PE13–016 and 2007 or stall due to a rich fuel mixture while Chrysler Minivans in DP14–002. As National Highway Traffic Safety driving, in the brief period immediately described above in PE13–016, the Administration after filling the fuel tank. failure mechanism is a result of a ODI’s complaint review showed most swollen refueling float within the [Docket No. NHTSA–2018–0063] of the engine stall incidents occurred multifunction control valve. The FCA when vehicles were stopped or response also indicated no reported Reports, Forms, and Recordkeeping travelling at low speeds. This review accidents or property damage in a fleet Requirements also revealed that no significant of 29,573 vehicles with more than 4 AGENCY: National Highway Traffic difficulty restarting the vehicle was billion vehicle miles driven over 10 Safety Administration (NHTSA), reported and no crashes or injuries were years of service. FCA believes that, Department of Transportation. identified in the subject vehicles, which predicated upon these findings, there is ACTION: Reinstatement of a previously had been in service for 7 to 8 years. The no unreasonable risk to motor safety. approved collection of information. investigation (PE13–016) was closed Further details of the investigation will

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SUMMARY: This document solicits public Docket: For access to the docket to Type of Request: Reinstatement of a comments on continuation of the read background documents or previously approved collection. requirements for the collection of comments received, go to http:// Affected Public: Businesses, information entitled ‘‘Consolidated www.regulations.gov or the street Individuals and Households. Child Restraint System Registration, address listed above. Follow the online Summary of the Collection of Labeling and Defect Notifications’’ instructions for accessing the dockets. Information: Child restraint (OMB Control Number: 2127–0576) and FOR FURTHER INFORMATION CONTACT: manufacturers are required to provide the accuracy of the revised agency’s Complete copies of each request for an owner’s registration card for estimate of the burden of the proposed collection of information may be purchasers of child safety seats in information collection. obtained at no charge from Cristina accordance with title 49 of the Code of Before a Federal agency can collect Echemendia, U.S. Department of Federal Regulation (CFR), part 571– certain information from the public, it Transportation, NHTSA, 1200 New section 213, ‘‘Child restraint systems.’’ must receive approval from the Office of Jersey Avenue SE, West Building Room The registration card is perforated into two-parts (see Figures 1 and 2). The top Management and Budget (OMB). Under W43–447, NRM–130, Washington, DC part contains a message and suitable procedures established by the 20590. Cristina Echemendia’s telephone instructions to be retained by the Paperwork Reduction Act of 1995, number is 202–366–6345 and fax purchaser. The bottom part is to be before seeking OMB approval, Federal number is 202–366–7002. Please returned to the manufacturer by the agencies must solicit public comment identify the relevant collection of purchaser. The bottom part includes on proposed collections of information, information by referring to its OMB prepaid return postage, the pre-printed including extensions and reinstatement Control Number. of previously approved collections. name/address of the manufacturer, the SUPPLEMENTARY INFORMATION: Under the DATES: You should submit your pre-printed model and date of Paperwork Reduction Act of 1995, comments early enough to ensure that manufacture, and spaces for the before an agency submits a proposed Docket Management receives them no purchaser to fill in his/her name and collection of information to OMB for later than July 16, 2018. address. Optionally, child restraint approval, it must first publish a ADDRESSES: You may submit comments manufacturers are permitted to add to document in the Federal Register the registration form: (a) Specified (identified by the DOT Docket ID providing a 60-day comment period and Number above) by any of the following statements informing child restraint otherwise consult with members of the system (CRS) owners that they may methods: public and affected agencies concerning • Federal eRulemaking Portal: Go to register online; (b) the internet address each proposed collection of information. http://www.regulations.gov. Follow the for registering with the company; (c) The OMB has promulgated regulations online instructions for submitting revisions to statements reflecting use of comments. describing what must be included in the internet to register; and (d) a space • Mail: Docket Management Facility: such a document. Under OMB’s for the consumer’s email address. For U.S. Department of Transportation, 1200 regulation (at 5 CFR 1320.8(d)), an those CRS owners with access to the New Jersey Avenue SE, West Building agency must ask for public comment on internet, online registration may be a Ground Floor, Room W12–140, the following: preferred method of registering a CRS. Washington, DC 20590–0001. (i) Whether the proposed collection of In addition to the registration card • Hand Delivery or Courier: West information is necessary for the proper supplied by the manufacturer, NHTSA Building Ground Floor, Room W12–140, performance of the functions of the has implemented a CRS registration 1200 New Jersey Avenue SE, agency, including whether the system to assist those individuals who Washington, DC, 20590–0001 between 9 information will have practical utility; have either lost the registration card that a.m. and 5 p.m. ET, Monday through (ii) The accuracy of the agency’s came with the CRS or purchased a Friday, except Federal holidays. estimate of the burden of the proposed previously owned CRS. Upon the • Fax: 202–493–2251. collection of information, including the owner’s request, NHTSA provides a Regardless of how you submit your validity of the methodology and substitute registration form that can be comments, you should mention the assumptions used; obtained either by mail or from the docket number of this document. You (iii) How to enhance the quality, internet 1 (see Figure 3). When the may call the Docket at 202–366–9324. utility, and clarity of the information to completed registration is returned to the Please identify the proposed collection be collected; agency, it is then submitted to the CRS of information for which a comment is (iv) How to minimize the burden of manufacturers. In the absence of a provided, by referencing its OMB the collection of information on those substitute registration system, many clearance number. It is requested, but who are to respond, including the use owners of child passenger safety seats, not required, that two copies of the of appropriate automated, electronic, especially any second-hand owners, comment be provided. mechanical, or other technological might not be notified of safety defects Note that all comments received will collection techniques or other forms of and non-compliances, and would not be posted without change to http:// information technology, e.g. permitting have the defects and non-compliances www.regulations.gov, including any electronic submission of responses. remedied. personal information provided. Anyone In compliance with these Child seat owner registration is able to search the electronic form of requirements, NHTSA asks for public information is retained in the event that all comments received into any of our comments on the following proposed owners need to be contacted for defect dockets by the name of the individual collection of information: recalls or replacement campaigns. submitting the comment (or signing the Title: ‘‘Consolidated Child Restraint Chapter 301 of title 49 of the United comment, if submitted on behalf of an System Registration, Labeling and States Code specifies that if either association, business, labor union, etc.). Defect Notifications.’’ NHTSA or a manufacturer determines You may review DOT’s complete OMB Control Number: 2127–0576. that motor vehicles or items of motor Privacy Act Statement in the Federal Requested Expiration Date of Register published on April 11, 2000 Approval: Three years from the 1 http://www-odi.nhtsa.dot.gov/cars/problems/ (65 FR 19477–78). approval date. recalls/register/childseat/csregfrm.pdf.

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vehicle equipment contain a defect that registration form, (2) the hours spent determine the maximum allowable relates to motor vehicle safety or fail to collecting registration information and child weight for lower anchor use and comply with an applicable Federal (3) the hours spent determining the to add the information to the existing Motor Vehicle Safety Standard, the maximum allowable child weight for label and instruction manual. Therefore, manufacturer must notify owners and lower anchor use and adding the the total annual burden hours for the purchasers of the defect or information to the existing label and information on the maximum allowable noncompliance and must provide a instruction manual. child weight in the existing label and remedy without charge. In title 49 of the NHTSA estimates that 14,500,000 instruction manual is 2,819 hours (= CFR, part 577, defect and CRSs are currently sold each year by 29 5,075,000 × (2 seconds/3,600 seconds/ noncompliance notification for CRS manufacturers. Of the CRSs sold hour)). equipment items, including child each year, NHTSA estimates that The estimated total annual number of restraint systems, must be sent by first 2,147,504 are registered using burden hours is 99,330 (= 42,823 + class mail to the most recent purchaser registration cards and 421,895 are 53,688 + 2,819) hours. The total known to the manufacturer. registered online. A consumer spends estimated hour burden increased from Child restraint manufacturers are also approximately 60 seconds (1 minute) 40,497 hours in the 2015 information required to provide a printed filling out the registration form. The collection notice to 99,330 burden hours instructions brochure with step-by-step estimated annual number of burden (a 58,833 burden hour increase). The information on how the restraint is to be hours for consumers to fill out the increase in burden is due to the used. Without proper use, the registration form is 42,823 hours (= inclusion of the burden hours to effectiveness of these systems is greatly 2,569,400 × (60 seconds/3,600 seconds/ consumers for filling the registration diminished. Each child restraint system hour)). Manufacturers must spend about form and due to an increase in CRS must also have a permanent label. A 90 seconds (1.5 min) to enter the sales. In 2015, NHTSA estimated that permanently attached label gives information from each returned approximately 10,600,000 CRSs are sold ‘‘quicklook’’ information on whether the registration card; while, online each year while NHTSA’s estimate in restraint meets the safety requirements, registrations are considered to have no 2018 increased to 14,500,000 CRSs. recommended installation and use, and burden for the manufacturer, as the Comments are invited on: Whether warnings against misuse. CRSs information is entered by the purchaser. the proposed collection of information equipped with internal harnesses to Therefore, the estimated annual number is necessary for the proper performance restrain children, and with components of burden hours for CRS registration of the functions of the Department, to attach to a child restraint anchorage information collection is 53,688 hours including whether the information will system, are also required to be labeled (= 2,147,504 × (90 seconds/3,600 have practical utility; the accuracy of with a child weight limit for using the seconds/hour)). the Department’s estimate of the burden lower anchors to attach the child About 10,150,000 of the CRSs sold of the proposed information collection; restraint to the vehicle. The child each year are equipped with internal ways to enhance the quality, utility and weight limit depends upon the weight harnesses. About half of the CRSs clarity of the information to be of the CRS. equipped with internal harnesses sold collected; and ways to minimize the Estimated Annual Burden: 99,330 annually (5,075,000 = 10,150,000 × 0.5) burden of the collection of information hours. would require a label with the on respondents, including the use of The total burden hours for this maximum allowable child weight for automated collection techniques or collection consist of: (1) The hours using the lower anchors. Manufacturers other forms of information technology. spent by consumers filling out the must spend about 2 seconds to BILLING CODE 4910–59–P

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Figure 2 -Registration form for child restraint systems - address side

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Issued in Washington, DC, under authority DEPARTMENT OF TRANSPORTATION SUMMARY: This document grants in full delegated in 49 CFR 1.95 and 501.8. the Ford Motor Company’s (Ford) Raymond R. Posten, National Highway Traffic Safety petition for an exemption of the Lincoln Associate Administrator for Rulemaking. Administration Nautilus vehicle line in accordance with [FR Doc. 2018–10427 Filed 5–15–18; 8:45 am] Exemption from Vehicle Theft Petition for Exemption From the Prevention Standard. This petition is BILLING CODE 4910–59–C Federal Motor Vehicle Theft Prevention granted because the agency has Standard; Ford Motor Company determined that the antitheft device to be placed on the line as standard AGENCY: National Highway Traffic equipment is likely to be as effective in Safety Administration (NHTSA), reducing and deterring motor vehicle Department of Transportation (DOT). theft as compliance with the parts- ACTION: Grant of petition for exemption. marking requirements of the Federal Motor Vehicle Theft Prevention

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Standard. (Theft Prevention Standard). device is deactivated when a start antitheft features common to Ford Ford also requested confidential sequence is completed and engine start vehicles, (i.e., hood release located treatment for specific information in its is successful. Ford further stated that inside the vehicle, counterfeit resistant petition. Therefore, no confidential the vehicle engine can only be started VIN labels, secondary VINs, and cabin information provided for purposes of when the key is present in the vehicle accessibility only with the use of a valid this notice has been disclosed. and the ‘‘StartStop’’ button inside the key fob). DATES: The exemption granted by this vehicle is pressed. Ford stated that Ford stated that it believes that the notice is effective beginning with the when the ‘‘StartStop’’ button is pressed, standard installation of its IAwPB 2019 model year (MY). the transceiver module will read a key device would be an effective deterrent FOR FURTHER INFORMATION CONTACT: Ms. code and transmit an encrypted message against vehicle theft and compared its Carlita Ballard, Office of International to the control module to determine key proposed device with other antitheft Policy, Fuel Economy and Consumer validity and engine start by sending a devices which NHTSA has determined Programs, NHTSA, West Building, separate encrypted message to the BCM to be as effective in reducing and W43–439, NRM–310, 1200 New Jersey and the PCM. The powertrain will deterring motor vehicle theft as would compliance with the parts-marking Avenue SE, Washington, DC 20590. Ms. function only if the key code matches requirements. Ballard’s phone number is 202–366– the unique identification key code Ford stated that the antitheft device 5222. Her fax number is 202–493–2990. previously programmed into the BCM. Ford stated that the two modules must was installed on all MY 1996 Ford SUPPLEMENTARY INFORMATION: In a be matched together in order for the Mustang GT and Cobra models as well petition dated February 6, 2018, Ford vehicle to start. If the codes do not as other selected models. Ford also requested an exemption from the parts- match, the powertrain engine will be stated that on its 1997 models, the marking requirements of the Theft inoperable. Ford further stated that any installation of its antitheft device was Prevention Standard for the Lincoln attempt to operate the vehicle without extended to the entire Ford Mustang Nautilus vehicle line beginning with transmission of the correct code to the vehicle line as standard equipment and MY 2019. The petition requested electronic control (i.e., short circuiting that according to the National Insurance exemption from parts-marking pursuant the ‘‘StartStop’’ button) module will be Crime Bureau (NICB) theft statistics, MY to 49 CFR part 543, Exemption from ineffective. 1997 Mustangs installed with the Vehicle Theft Prevention Standard, Ford’s submission is considered a antitheft device showed a 70% based on the installation of an antitheft complete petition as required by 49 CFR reduction in theft rate compared to its device as standard equipment for the 543.7, in that it meets the general MY 1995 Mustangs without an antitheft entire vehicle line. requirements contained in § 543.5 and device. Under 49 CFR part 543.5(a), a the specific content requirements of Ford further stated that the proposed manufacturer may petition NHTSA to § 543.6. antitheft device is very similar to the grant an exemption for one vehicle line In addressing the specific content system that was offered on its MY 2016 per model year. In its petition, Ford requirements of 543.6, Ford provided Lincoln MKX vehicle line. The Lincoln provided a detailed description and information on the reliability and MKX vehicle line was granted a parts- diagram of the identity, design, and durability of its proposed device. To marking exemption on November 25, location of the components of the ensure reliability and durability of the 2014 by NHTSA (See 79 FR 70276) antitheft device for its Lincoln Nautilus device, Ford conducted tests based on beginning with its MY 2016 vehicles. vehicle line. Ford stated that the its own specified standards. Ford The agency notes that current theft rate Lincoln Nautilus will be installed with provided a detailed list of the tests data for the Lincoln MKX vehicle line its Intelligent Access with Push Button conducted and believes that the device for MYs 2012 through 2014 are 0.5841, Start (IAwPB) system as standard is reliable and durable since the device 0.5724 and 0.5276 respectively. equipment on the entire vehicle line. complied with its own specified Ford also reported that beginning The IAwPB system is a passive, requirements for each test. with MY 2010, its antitheft device was electronic engine immobilizer device Ford stated that incorporation of installed as standard equipment on all that uses encrypted transponder several features in the device further of its North American Ford, Lincoln and technology. Key components of the support the reliability and durability of Mercury vehicles but was offered as IAwPB device will include an the device. Specifically, some of those optional equipment on its 2010 F-series Intelligent Access electronic Push- features include: Encrypted Super Duty pickups, Econoline and Button Start key fob, keyless ignition communication between the Transit Connect vehicles. Ford further system, radio transceiver module, body transponder, BCM control function and stated that beginning with MY 2010, the control module (BCM), powertrain the PCM; virtually impossible key IAwPB device was installed as standard control module (PCM) and a passive duplication; and shared security data equipment on its Lincoln MKT vehicles. immobilizer. Ford further stated that its between the body control module/ In MY 2011, the device was offered as Lincoln Nautilus vehicle line will also remote function actuator and the standard equipment on its Lincoln MKX be offered with a perimeter alarm powertrain control module. vehicle line, and as an option on the system as standard equipment which Additionally, Ford stated that its Lincoln MKS, Ford Taurus, Edge, will activate a visible and audible alarm antitheft device has no moving parts Explorer and Focus vehicles. Beginning whenever unauthorized access is (i.e., BCM, PCM, and electrical with MY 2013, the device was offered attempted. components) to perform system as standard equipment on the Lincoln Ford stated that the device’s functions which eliminate the MKZ and optionally on the Ford Fusion, integration of the transponder into the possibility for physical damage or C-Max and Escape vehicles. normal operation of the ignition key deterioration from normal use; and Ford referenced the agency’s assures activation of the system. Ford mechanically overriding the device to published theft rate data for the Lincoln also stated that its system is start the vehicle is also impossible. MKX vehicles and stated that the automatically activated when the Ford stated that its MY 2019 Lincoln Lincoln Nautilus will use the IAwPB ‘‘StartStop’’ button is pressed, shutting Nautilus vehicle line will also be device similar to the design and off the engine. Ford stated that the equipped with several other standard architecture of the Lincoln MKX. Ford

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also stated that the Lincoln Nautilus is lines exempted from the parts-marking DATES: The meeting will be held comparably similar to the Ford Escape requirements of the Theft Prevention Thursday, May 31, 2018. in vehicle segment, size and equipment. Standard. FOR FURTHER INFORMATION CONTACT: Lisa The agency agrees that the device is If Ford decides not to use the Billups at 1–888–912–1227 or (214) substantially similar to devices installed exemption for this line, it must formally 413–6523. on other vehicle lines for which the notify the agency. If such a decision is agency has already granted exemptions. made, the line must be fully marked SUPPLEMENTARY INFORMATION: Notice is Based on the supporting evidence according to the requirements under 49 hereby given pursuant to Section submitted by Ford on the device, the CFR parts 541.5 and 541.6 (marking of 10(a)(2) of the Federal Advisory agency believes that the antitheft device major component parts and replacement Committee Act, 5 U.S.C. App. (1988) for the Lincoln Nautilus vehicle line is parts). that an open meeting of the Taxpayer likely to be as effective in reducing and NHTSA notes that if Ford wishes in Advocacy Panel Joint Committee will be deterring motor vehicle theft as the future to modify the device on held Thursday, May 31, 2018, at 1:00 compliance with the parts-marking which this exemption is based, the p.m. Eastern Time via teleconference. requirements of the Theft Prevention company may have to submit a petition The public is invited to make oral Standard (49 CFR part 541). to modify the exemption. Part 543.7(d) comments or submit written statements Pursuant to 49 U.S.C. 33106 and 49 states that a part 543 exemption applies for consideration. For more information CFR 543.7 (b), the agency grants a only to vehicles that belong to a line please contact Lisa Billups at 1–888– petition for exemption from the parts- exempted under this part and equipped 912–1227 or (214) 413–6523, or write marking requirements of part 541 either with the antitheft device on which the TAP Office 1114 Commerce Street, in whole or in part, if it determines that, line’s exemption is based. Further, part Dallas, TX 75242–1021, or post based upon substantial evidence, the 543.9(c)(2) provides for the submission comments to the website: http:// standard equipment antitheft device is of petitions ‘‘to modify an exemption to www.improveirs.org. likely to be as effective in reducing and permit the use of an antitheft device The agenda will include various deterring motor vehicle theft as similar to but differing from the one compliance with the parts-marking committee issues for submission to the specified in that exemption.’’ requirements of part 541. The agency IRS and other TAP related topics. Public The agency wishes to minimize the finds that Ford has provided adequate input is welcomed. administrative burden that part reasons for its belief that the antitheft 543.9(c)(2) could place on exempted Dated: May 10, 2018. device for the Lincoln Nautilus vehicle vehicle manufacturers and itself. The Antoinette Ross, line is likely to be as effective in agency did not intend in drafting part Acting Director, Taxpayer Advocacy Panel. reducing and deterring motor vehicle 543 to require the submission of a [FR Doc. 2018–10481 Filed 5–15–18; 8:45 am] theft as compliance with the parts- modification petition for every change BILLING CODE 4830–01–P marking requirements of the Theft to the components or design of an Prevention Standard (49 CFR part 541). antitheft device. The significance of This conclusion is based on the DEPARTMENT OF THE TREASURY information Ford provided about its many such changes could be de minimis. Therefore, NHTSA suggests device. Office of the Secretary The agency concludes that the device that if the manufacturer contemplates will provide the five types of making any changes, the effects of List of Countries Requiring performance listed in § 543.6(a)(3): which might be characterized as de Cooperation With an International Promoting activation; attracting minimis, it should consult the agency Boycott attention to the efforts of unauthorized before preparing and submitting a persons to enter or operate a vehicle by petition to modify. In accordance with section 999(a)(3) means other than a key; preventing Issued in Washington, DC, under authority of the Internal Revenue Code of 1986, defeat or circumvention of the device by delegated in 49 CFR part 1.95 and 501.8. the Department of the Treasury is unauthorized persons; preventing Raymond R. Posten, publishing a current list of countries operation of the vehicle by Associate Administrator for Rulemaking. which require or may require unauthorized entrants; and ensuring the [FR Doc. 2018–10429 Filed 5–15–18; 8:45 am] participation in, or cooperation with, an reliability and durability of the device. BILLING CODE 4910–59–P international boycott (within the For the foregoing reasons, the agency meaning of section 999(b)(3) of the hereby grants in full Ford’s petition for Internal Revenue Code of 1986). exemption for the Lincoln Nautilus On the basis of the best information vehicle line from the parts-marking DEPARTMENT OF THE TREASURY currently available to the Department of requirements of 49 CFR part 541. The the Treasury, the following countries agency notes that 49 CFR part 541, Internal Revenue Service require or may require participation in, Appendix A–1, identifies those lines Open Meeting of the Taxpayer or cooperation with, an international that are exempted from the Theft Advocacy Panel Joint Committee: boycott (within the meaning of section Prevention Standard for a given model Change 999(b)(3) of the Internal Revenue Code year. 49 CFR part 543.7(f) contains of 1986). publication requirements incident to the AGENCY: Internal Revenue Service (IRS), disposition of all part 543 petitions. Treasury. Iraq Kuwait Advanced listing, including the release ACTION: Notice of meeting: change. of future product nameplates, the Lebanon Libya SUMMARY: beginning model year for which the In the Federal Register notice Qatar petition is granted and a general that was originally published on May 4, Saudi Arabia description of the antitheft device is 2018, the meeting date has changed. The Syria necessary in order to notify law correct date of the meeting is Thursday, United Arab Emirates enforcement agencies of new vehicle May 31, 2018. Yemen

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Dated: May 4, 2018. above in the Summary, or by contacting What to Report: This report will Douglas Poms, the survey staff of the Federal Reserve collect information on foreign resident International Tax Counsel (Tax Policy). Bank of New York at (212) 720–6300 or holdings of U.S. securities, including [FR Doc. 2018–10373 Filed 5–15–18; 8:45 am] (646) 720–6300, email: SHLA.help@ equities, short-term debt securities BILLING CODE 4810–25–P ny.frb.org. The mailing address is: (including selected money market Federal Reserve Bank of New York, Data instruments), and long-term debt and Statistics Function, 6th Floor, 33 securities. DEPARTMENT OF THE TREASURY Liberty Street, New York, NY 10045– 0001. Paperwork Reduction Act Notice: This Survey of Foreign Ownership of U.S. data collection has been approved by FOR FURTHER INFORMATION CONTACT: the Office of Management and Budget Securities as of June 30, 2018 Inquiries can also be made to the (OMB) in accordance with the Federal Reserve Board of Governors, at AGENCY: Departmental Offices, Paperwork Reduction Act and assigned Department of the Treasury. (202) 452–3476, or to Dwight Wolkow, at (202) 622–1276, or by email: control number 1505–0123. An agency ACTION: Notice of reporting [email protected]. may not conduct or sponsor, and a requirements. person is not required to respond to, a SUPPLEMENTARY INFORMATION: collection of information unless it SUMMARY: By this Notice and in Definition: A U.S. person is any displays a valid control number accordance with the Code of Federal individual, branch, partnership, assigned by OMB. The estimated Regulations, the Department of the associated group, association, estate, average annual burden associated with Treasury is informing the public that it trust, corporation, or other organization is conducting a mandatory survey of (whether or not organized under the this collection of information is 486 foreign ownership of U.S. securities as laws of any State), and any government hours per report for the largest of June 30, 2018. This mandatory survey (including a foreign government, the custodians of securities, and 110 hours is conducted under the authority of the United States Government, a State or per report for the largest issuers of International Investment and Trade in local government, and any agency, securities that have data to report and Services Survey Act. This Notice corporation, financial institution, or are not custodians. Comments constitutes legal notification to all other entity or instrumentality thereof, concerning the accuracy of this burden United States persons (defined below) including a government-sponsored estimate and suggestions for reducing who meet the reporting requirements set agency), who resides in the United this burden should be directed to the forth in this Notice that they must States or is subject to the jurisdiction of Department of the Treasury, Office of respond to, and comply with, this the United States. International Affairs, Attention Who Must Report: The panel for this survey. Additional copies of the Administrator, International Portfolio survey is based primarily on the level of reporting forms SHLA (2018) and Investment Data Reporting Systems, foreign resident holdings of U.S. instructions may be printed from the Room 5422, Washington, DC 20220, and securities reported on the June 2014 internet at: http://www.treasury.gov/ to OMB, Attention Desk Officer for the benchmark survey of foreign resident resource-center/data-chart-center/tic/ Department of the Treasury, Office of holdings of U.S. securities, and on the Pages/forms-sh.aspx. Aggregate Holdings of Long-Term Information and Regulatory Affairs, DATES: Data should be submitted to the Securities by U.S. and Foreign Residents Washington, DC 20503. Federal Reserve Bank of New York, (TIC SLT) report as of December 2017, Authority: 22 U.S.C. 3101 et seq., and in acting as fiscal agent for the Department and will consist mostly of the largest accordance with 31 CFR 129. of the Treasury, by August 31, 2018. reporters. Entities required to report will ADDRESSES: Copies of the survey forms be contacted individually by the Federal Dwight Wolkow, and instructions, which contain Reserve Bank of New York. Entities not Administrator, International Portfolio complete information on reporting contacted by the Federal Reserve Bank Investment Data Reporting Systems. procedures and definitions, may be of New York have no reporting [FR Doc. 2018–10459 Filed 5–15–18; 8:45 am] obtained at the website address given responsibilities. BILLING CODE 4810–25–P

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Part II

Environmental Protection Agency

40 CFR Part 63 National Emission Standards for Hazardous Air Pollutants: Surface Coating of Wood Building Products Residual Risk and Technology Review; Proposed Rule

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ENVIRONMENTAL PROTECTION ADDRESSES: Comments. Submit your you wish to make. The EPA will AGENCY comments, identified by Docket ID No. generally not consider comments or EPA–HQ–OAR–2016–0678, at http:// comment contents located outside of the 40 CFR Part 63 www.regulations.gov. Follow the online primary submission (i.e., on the Web, instructions for submitting comments. cloud, or other file sharing system). [EPA–HQ–OAR–2016–0678; FRL–9977–32– Once submitted, comments cannot be Public Hearing. If a public hearing is OAR] edited or removed from Regulations.gov. requested, it will be held at the EPA’s Regulations.gov is our preferred method Washington DC Campus located at 1201 RIN 2060–AT71 of receiving comments. However, other Constitution Avenue, NW, Washington, submission formats are accepted. To National Emission Standards for DC. If a public hearing is requested, ship or send mail via the United States Hazardous Air Pollutants: Surface then we will provide details about the Postal Service, use the following Coating of Wood Building Products public hearing on our website at: address: U.S. Environmental Protection Residual Risk and Technology Review https://www.epa.gov/stationary-sources- Agency, EPA Docket Center, Docket ID air-pollution/surface-coating-wood- AGENCY: Environmental Protection No. EPA–HQ–OAR–2016–0678, Mail building-products-national-emission- Agency (EPA). Code 28221T, 1200 Pennsylvania standard-1. The EPA does not intend to Avenue NW, Washington, DC 20460. ACTION: Proposed rule. publish another document in the Use the following Docket Center address Federal Register announcing any SUMMARY: The U.S. Environmental if you are using express mail, updates on the request for a public Protection Agency (EPA) is proposing commercial delivery, hand delivery or hearing. Please contact Ms. Aimee St. amendments to the National Emission courier: EPA Docket Center, EPA WJC Clair at (919) 541–1063 or by email at Standards for Hazardous Air Pollutants West Building, Room 3334, 1301 [email protected] to request a (NESHAP) for Surface Coating of Wood Constitution Avenue NW, Washington, public hearing, to register to speak at the Building Products to address the results DC 20004. Delivery verification public hearing, or to inquire as to of the residual risk and technology signatures will be available only during whether a public hearing will be held. review (RTR) that the EPA is required to regular business hours. The EPA will make every effort to conduct under the Clean Air Act (CAA). Do not submit electronically any accommodate all speakers who arrive We found risks due to emissions of air information you consider to be and register. If a hearing is held at a U.S. toxics to be acceptable from this source Confidential Business Information (CBI) government facility, individuals category and determined that the or other information whose disclosure is planning to attend should be prepared current NESHAP provides an ample restricted by statute. Send or deliver to show a current, valid state- or federal- margin of safety to protect public health. information identified as CBI only to the approved picture identification to the We identified no new cost-effective following address: OAQPS Document security staff in order to gain access to controls under the technology review to Control Officer (C404–02), Office of Air the meeting room. An expired form of achieve further emissions reductions. Quality Planning and Standards, identification will not be permitted. The EPA is proposing: To add an Environmental Protection Agency, Please note that the Real ID Act, passed alternative compliance demonstration Research Triangle Park, NC 27711, by Congress in 2005, established new equation; to amend provisions Attention EPA–HQ–OAR–2016–0678. requirements for entering federal addressing periods of startup, shutdown Clearly mark the part or all of the facilities. If your driver’s license is information that you claim to be CBI. and malfunction (SSM); to amend issued by a noncompliant state, you For CBI information in a disk or CD– provisions regarding electronic must present an additional form of ROM that you mail to the EPA, mark the reporting; and to make technical and identification to enter a federal facility. outside of the disk or CD–ROM as CBI editorial changes. The EPA is proposing Acceptable alternative forms of and then identify electronically within these amendments to improve the identification include: Federal the disk or CD–ROM the specific effectiveness of the NESHAP. This employee badge, passports, enhanced information that is claimed as CBI. In action also proposes a new EPA test driver’s licenses, and military addition to one complete version of the method to measure isocyanate identification cards. Additional comment that includes information compounds in certain surface coatings. information on the Real ID Act is claimed as CBI, a copy of the comment DATES: Comments. Comments must be that does not contain the information available at https://www.dhs.gov/real- received on or before June 15, 2018 claimed as CBI must be submitted for id-frequently-asked-questions. In unless a public hearing is requested by inclusion in the public docket. addition, you will need to obtain a May 21, 2018. If a public hearing is Information so marked will not be property pass for any personal requested, comments must be received disclosed except in accordance with belongings you bring with you. Upon on or before July 2, 2018. Under the procedures set forth in 40 CFR part 2. leaving the building, you will be Paperwork Reduction Act (PRA), For additional submission methods, required to return this property pass to comments on the information collection the full EPA public comment policy, the security desk. No large signs will be provisions are best assured of information about CBI or multimedia allowed in the building, cameras may consideration if the Office of submissions, and general guidance on only be used outside of the building, Management and Budget (OMB) making effective comments, please visit and demonstrations will not be allowed receives a copy of your comments on or https://www.epa.gov/dockets/ on federal property for security reasons. before June 15, 2018. commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: For Public Hearing. If a public hearing is The EPA may publish any comment questions about this proposed action, requested by May 21, 2018, then we will received to its public docket. contact Mr. John Bradfield, Sector hold a public hearing on May 31, 2018 Multimedia submissions (audio, video, Policies and Programs Division (E143– at the location described in the etc.) must be accompanied by a written 03), Office of Air Quality Planning and ADDRESSES section. The last day to pre- comment. The written comment is Standards, U.S. Environmental register in advance to speak at the considered the official comment and Protection Agency, Research Triangle public hearing will be May 29, 2018. should include discussion of all points Park, North Carolina 27711; telephone

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number: (919) 541–3062; fax number: identity or contact information unless ICR information collection request (919) 541–0516; and email address: you provide it in the body of your IRIS Integrated Risk Information System [email protected]. For specific comment. If you send an email km kilometer comment directly to the EPA without LAER lowest achievable emission rate information regarding the risk modeling m3 cubic meter methodology, contact Mr. James Hirtz, going through http:// MACT maximum achievable control Health and Environmental Impacts www.regulations.gov, your email technology Division (C539–02), Office of Air address will be automatically captured MDI methylene diphenyl diisocyanate Quality Planning and Standards, U.S. and included as part of the comment MI methyl isocyanate Environmental Protection Agency, that is placed in the public docket and MIR maximum individual risk Research Triangle Park, North Carolina made available on the Internet. If you NAAQS National Ambient Air Quality 27711; telephone number: (919) 541– submit an electronic comment, the EPA Standards NAICS North American Industry 0881; fax number: (919) 541–0840; and recommends that you include your Classification System email address: [email protected]. For name and other contact information in NAS National Academy of Sciences information about the applicability of the body of your comment and with any NEI National Emissions Inventory the NESHAP to a particular entity, disk or CD–ROM you submit. If the EPA NESHAP national emission standards for contact Mr. John Cox, Office of cannot read your comment due to hazardous air pollutants Enforcement and Compliance technical difficulties and cannot contact No. Number Assurance, U.S. Environmental you for clarification, the EPA may not NRDC Natural Resources Defense Council NTTAA National Technology Transfer and Protection Agency, EPA WJC South be able to consider your comment. Advancement Act Building (Mail Code 2221A), 1200 Electronic files should not include OAQPS Office of Air Quality Planning and Pennsylvania Avenue NW, Washington special characters or any form of Standards DC 20460; telephone number: (202) encryption and be free of any defects or OMB Office of Management and Budget 564–1395; and email address: cox.john@ viruses. For additional information PB-HAP hazardous air pollutants known to epa.gov. about the EPA’s public docket, visit the be persistent and bio-accumulative in the environment SUPPLEMENTARY INFORMATION: EPA Docket Center homepage at http:// www.epa.gov/dockets. PDF portable document format Docket. The EPA has established a PRA Paperwork Reduction Act docket for this rulemaking under Docket Preamble Acronyms and QA quality assurance ID No. EPA–HQ–OAR–2016–0678. All Abbreviations. We use multiple QC quality control documents in the docket are listed in acronyms and terms in this preamble. RACT reasonably available control the Regulations.gov index. Although While this list may not be exhaustive, to technology listed in the index, some information is ease the reading of this preamble and for RBLC RACT/BACT/LAER Clearinghouse REL reference exposure level not publicly available, e.g., CBI or other reference purposes, the EPA defines the following terms and acronyms here: RFA Regulatory Flexibility Act information whose disclosure is RfC reference concentration restricted by statute. Certain other AEGL acute exposure guideline level RfD reference dose material, such as copyrighted material, AERMOD air dispersion model used by the RTR residual risk and technology review is not placed on the Internet and will be HEM–3 model SAB Science Advisory Board publicly available only in hard copy. ANSI American National Standards SSM startup, shutdown, and malfunction Publicly available docket materials are Institute TDI 2,4 toluene diisocyanate ASTM American Society for Testing and TO thermal oxidizers available either electronically in Materials TOSHI target organ-specific hazard index Regulations.gov or in hard copy at the ATSDR Agency for Toxic Substances and tpy tons per year EPA Docket Center, Room 3334, EPA Disease Registry TRI Toxics Release Inventory WJC West Building, 1301 Constitution BACT best available control technology UF uncertainty factor Avenue NW, Washington, DC. The CAA Clean Air Act UMRA Unfunded Mandates Reform Act Public Reading Room is open from 8:30 CalEPA California EPA URE unit risk estimate a.m. to 4:30 p.m., Monday through CAP criteria air pollutant U.S. United States Friday, excluding legal holidays. The CBI Confidential Business Information U.S.C. United States Code CDX Central Data Exchange VCS voluntary consensus standards telephone number for the Public CEDRI Compliance and Emissions Data VOC volatile organic compounds Reading Room is (202) 566–1744, and Reporting Interface VOHAP volatile organic hazardous air the telephone number for the EPA CFR Code of Federal Regulations pollutants Docket Center is (202) 566–1742. CHIEF Clearinghouse for Inventories and WebFIRE Web Factor Information Retrieval Instructions. Direct your comments to Emissions Factors System Docket ID No. EPA–HQ–OAR–2016– CO catalytic oxidizers XML extensible markup language 0678. The EPA’s policy is that all ECHO Enforcement and Compliance Organization of this Document. The comments received will be included in History Online EJ environmental justice information in this preamble is the public docket without change and EPA Environmental Protection Agency organized as follows: may be made available online at http:// ERPG Emergency Response Planning I. General Information www.regulations.gov, including any Guideline A. Does this action apply to me? personal information provided, unless ERT Electronic Reporting Tool B. Where can I get a copy of this document the comment includes information GACT generally available control and other related information? claimed to be CBI or other information technology C. What should I consider as I prepare my whose disclosure is restricted by statute. HAP hazardous air pollutant(s) comments for the EPA? Do not submit information that you HCl hydrochloric acid II. Background consider to be CBI or otherwise HDI hex methylene 1,6 diisocyanate A. What is the statutory authority for this HEM-3 Human Exposure Model, Version protected through http:// action? 1.1.0 B. What is this source category and how www.regulations.gov or email. The HF hydrogen fluoride does the current NESHAP regulate its http://www.regulations.gov Web site is HI hazard index HAP emissions? an ‘‘anonymous access’’ system, which HQ hazard quotient C. What data collection activities were means the EPA will not know your IBR incorporation by reference conducted to support this action?

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D. What other relevant background B. Executive Order 13771: Reducing once promulgated, will be directly information and data are available? Regulation and Controlling Regulatory applicable to the affected sources. III. Analytical Procedures Costs Federal, state, local and tribal C. Paperwork Reduction Act (PRA) A. How do we consider risk in our government entities would not be decision-making? D. Regulatory Flexibility Act (RFA) B. How do we perform the technology E. Unfunded Mandates Reform Act affected by this proposed action. As review? (UMRA) defined in the Initial List of Categories C. How did we estimate post-MACT risks F. Executive Order 13132: Federalism of Sources Under Section 112(c)(1) of posed by the source category? G. Executive Order 13175: Consultation the Clean Air Act Amendments of 1990 IV. Analytical Results and Proposed and Coordination with Indian Tribal (see 57 FR 31576, July 16, 1992), the Governments Decisions ‘‘Surface Coating of Wood Building A. What are the results of the risk H. Executive Order 13045: Protection of Children from Environmental Health Products’’ source category is any facility assessment and analyses? engaged in the surface coating of wood B. What are our proposed decisions Risks and Safety Risks I. Executive Order 13211: Actions regarding risk acceptability, ample building products. Wood building Concerning Regulations That margin of safety, and adverse products are defined as any product that Significantly Affect Energy Supply, environmental effects? contains more than 50 percent by Distribution, or Use C. What are the results and proposed weight wood or wood fiber, excluding J. National Technology Transfer and decisions based on our technology Advancement Act (NTTAA) and 1 CFR the weight of glass components, and is review? part 51 used in the construction, either interior D. What other actions are we proposing? K. Executive Order 12898: Federal Actions or exterior, of a residential, commercial, E. What compliance dates are we to Address Environmental Justice in or institutional building. This NESHAP, proposing? Minority Populations and Low-Income 40 Code of Federal regulations (CFR) V. Summary of Cost, Environmental, and Populations Economic Impacts part 63, subpart QQQQ, regulates all A. What are the affected sources? I. General Information operations associated with the surface B. What are the air quality impacts? coating of wood building products, C. What are the cost impacts? A. Does this action apply to me? which includes preparation of the D. What are the economic impacts? Table 1 of this preamble lists the coating for application (e.g., mixing E. What are the benefits? NESHAP and associated regulated with thinners); surface preparation of VI. Request for Comments industrial source category that is the the wood building products; coating VII. Submitting Data Corrections application, curing, and drying VIII. Statutory and Executive Order Reviews subject of this proposal. Table 1 is not A. Executive Order 12866: Regulatory intended to be exhaustive, but rather equipment; equipment cleaning; and Planning and Review and Executive provides a guide for readers regarding storage, transfer, and handling of Order 13563: Improving Regulation and the entities that this proposed action is coatings, thinners, cleaning materials, Regulatory Review likely to affect. The proposed standards, and waste materials.

TABLE 1—NESHAP AND INDUSTRIAL SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION

Source category NESHAP NAICS code 1

Wood Building Products ...... Surface Coating of Wood Building Products ... 321211, 321212, 321218, 321219, 321911, 321999. 1 North American Industry Classification System.

B. Where can I get a copy of this C. What should I consider as I prepare docket without prior notice. Information document and other related my comments for the EPA? marked as CBI will not be disclosed information? Submitting CBI. Do not submit except in accordance with procedures set forth in 40 CFR part 2. Send or In addition to being available in the information containing CBI to the EPA through http://www.regulations.gov or deliver information identified as CBI docket, an electronic copy of this action email. Clearly mark the part or all of the only to the following address: OAQPS is available on the Internet. Following information that you claim to be CBI. Document Control Officer (C404–02), signature by the EPA Administrator, the For CBI information on a disk or CD– OAQPS, U.S. Environmental Protection EPA will post a copy of this proposed ROM that you mail to the EPA, mark the Agency, Research Triangle Park, North action at: https://www.epa.gov/ outside of the disk or CD–ROM as CBI Carolina 27711, Attention Docket ID No. stationary-sources-air-pollution/surface- and then identify electronically within EPA–HQ–OAR–2016–0678. coating-wood-building-products- the disk or CD–ROM the specific II. Background national-emission-standard-1. information that is claimed as CBI. In Following publication in the Federal addition to one complete version of the A. What is the statutory authority for Register, the EPA will post the Federal comments that includes information this action? Register version of the proposal and key claimed as CBI, you must submit a copy The statutory authority for this action technical documents at this same of the comments that does not contain is provided by sections 112 and 301 of website. Information on the overall RTR the information claimed as CBI for the CAA, as amended (42 U.S.C. 7401 et program is available at http:// inclusion in the public docket. If you seq.). Section 112 of the CAA www3.epa.gov/ttn/atw/rrisk/rtrpg.html. submit a CD–ROM or disk that does not establishes a two-stage regulatory A redline version of the regulatory contain CBI, mark the outside of the process to develop standards for language that incorporates the proposed disk or CD–ROM clearly that it does not emissions of hazardous air pollutants changes in this action is available in the contain CBI. Information not marked as (HAP) from stationary sources. docket for this action (Docket ID No. CBI will be included in the public Generally, the first stage involves EPA–HQ–OAR–2016–0678). docket and the EPA’s electronic public establishing technology-based standards

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and the second stage involves prescribe or enforce a numerical million].’’ 54 FR 38045, September 14, evaluating those standards that are emission standard. For area sources, 1989. If risks are unacceptable, the EPA based on maximum achievable control CAA section 112(d)(5) gives the EPA must determine the emissions standards technology (MACT) to determine discretion to set standards based on necessary to bring risks to an acceptable whether additional standards are generally available control technologies level without considering costs. In the needed to further address any remaining or management practices (GACT second step of the process, the EPA risk associated with HAP emissions. standards) in lieu of MACT standards. considers whether the emissions This second stage is commonly referred The second stage in standard-setting standards provide an ample margin of to as the ‘‘residual risk review.’’ In focuses on identifying and addressing safety ‘‘in consideration of all health addition to the residual risk review, the any remaining (i.e., ‘‘residual’’) risk information, including the number of CAA also requires the EPA to review according to CAA section 112(f). Section persons at risk levels higher than standards set under CAA section 112 112(f)(2) of the CAA requires the EPA to approximately 1-in-1 million, as well as every 8 years to determine if there are determine for source categories subject other relevant factors, including costs ‘‘developments in practices, processes, to MACT standards whether and economic impacts, technological or control technologies’’ that may be promulgation of additional standards is feasibility, and other factors relevant to appropriate to incorporate into the needed to provide an ample margin of each particular decision.’’ Id. The EPA standards. This review is commonly safety to protect public health or to must promulgate emission standards referred to as the ‘‘technology review.’’ prevent an adverse environmental necessary to provide an ample margin of When the two reviews are combined effect. CAA section 112(d)(5) provides safety to protect public health. After into a single rulemaking, it is commonly that this residual risk review is not conducting the ample margin of safety referred to as the ‘‘risk and technology required for categories of area sources analysis, we consider whether a more review.’’ The discussion that follows subject to GACT standards. Section stringent standard is necessary to identifies the most relevant statutory 112(f)(2)(B) of the CAA further expressly prevent, taking into consideration costs, sections and briefly explains the preserves the EPA’s use of the two-step energy, safety, and other relevant contours of the methodology used to approach for developing standards to factors, an adverse environmental effect. implement these statutory requirements. address any residual risk and the CAA section 112(d)(6) separately A more comprehensive discussion Agency’s interpretation of ‘‘ample requires the EPA to review standards appears in the document titled CAA margin of safety’’ developed in the promulgated under CAA section 112 Section 112 Risk and Technology National Emissions Standards for and revise them ‘‘as necessary (taking Reviews: Statutory Authority and Hazardous Air Pollutants: Benzene into account developments in practices, Methodology in the docket for this Emissions from Maleic Anhydride processes, and control technologies)’’ no rulemaking. Plants, Ethylbenzene/Styrene Plants, less frequently than every 8 years. In Benzene Storage Vessels, Benzene conducting this review, which we call In the first stage of the CAA section Equipment Leaks, and Coke By-Product the ‘‘technology review,’’ the EPA is not 112 standard setting process, the EPA Recovery Plants (Benzene NESHAP) (54 required to recalculate the MACT floor. promulgates technology-based standards FR 38044, September 14, 1989). The NRDC v. EPA, 529 F.3d 1077, 1084 (D.C. under CAA section 112(d) for categories EPA notified Congress in the Risk Cir. 2008); Association of Battery of sources identified as emitting one or Report that the Agency intended to use Recyclers, Inc. v. EPA, 716 F.3d 667 more of the HAP listed in CAA section the Benzene NESHAP approach in (D.C. Cir. 2013). The EPA may consider 112(b). Sources of HAP emissions are making CAA section 112(f) residual risk cost in deciding whether to revise the either major sources or area sources, and determinations (EPA–453/R–99–001, p. standards pursuant to CAA section CAA section 112 establishes different ES–11). The EPA subsequently adopted 112(d)(6). requirements for major source standards this approach in its residual risk B. What is this source category and how and area source standards. ‘‘Major determinations, and the United States does the current NESHAP regulate its sources’’ are those that emit or have the Court of Appeals for the District of HAP emissions? potential to emit 10 tons per year (tpy) Columbia Circuit (the Court) upheld the or more of a single HAP or 25 tpy or EPA’s interpretation that CAA section The ‘‘Surface Coating of Wood more of any combination of HAP. All 112(f)(2) incorporates the approach Building Products’’ source category other sources are ‘‘area sources.’’ For established in the Benzene NESHAP. includes any facility engaged in the major sources, CAA section 112(d) See Natural Resources Defense Council surface coating of wood building provides that the technology-based (NRDC) v. EPA, 529 F.3d 1077, 1083 products, which means the application NESHAP must reflect the maximum (D.C. Cir. 2008). of coatings using, for example, roll degree of emission reductions of HAP The approach incorporated into the coaters or curtain coaters in the achievable (after considering cost, CAA and used by the EPA to evaluate finishing or laminating of any wood energy requirements, and non-air residual risk and to develop standards building product that contains more quality health and environmental under CAA section 112(f)(2) is a two- than 50 percent by weight wood or impacts). These standards are step approach. In the first step, the EPA wood fiber, excluding the weight of any commonly referred to as MACT determines whether risks are acceptable. glass components, and is used in the standards. CAA section 112(d)(3) also This determination ‘‘considers all health construction, either interior or exterior, establishes a minimum control level for information, including risk estimation of a residential, commercial, or MACT standards, known as the MACT uncertainty, and includes a presumptive institutional building. Regulated ‘‘floor.’’ The EPA must also consider limit on maximum individual lifetime operations include all processes and control options that are more stringent [cancer] risk (MIR) 1 of approximately process units incorporating wood than the floor. Standards more stringent [1-in-10 thousand] [i.e., 100-in-1 building products surface coating than the floor are commonly referred to operations. The processes include, but as beyond-the-floor standards. In certain 1 Although defined as ‘‘maximum individual are not limited to, coating application instances, as provided in CAA section risk,’’ MIR refers only to cancer risk. MIR, one production lines, emissions capture and metric for assessing cancer risk, is the estimated 112(h), the EPA may set work practice risk if an individual were exposed to the maximum exhaust ducting systems, cleanup standards where it is not feasible to level of a pollutant for a lifetime. stations, coating preparation stations

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(e.g., mixing with thinners), surface • Information on air pollution control exposures to HAP with the potential to preparation of the wood building options in the wood building products cause noncancer health effects, and the products, curing and drying equipment; surface coating industry from the hazard quotient (HQ) for acute and storage, transfer, and handling of reasonably available control technology exposures to HAP with the potential to coatings, thinners, cleaning materials, (RACT)/best achievable control cause noncancer health effects.2 The and waste materials. This NESHAP, 40 technology (BACT)/lowest achievable assessment also provides estimates of CFR part 63, subpart QQQQ, regulates emission limits (LAER) Clearinghouse the distribution of cancer risks within surface coating of wood building (RBLC); the exposed populations, cancer products (referred to in this document • Information on the most effective incidence, and an evaluation of the as the Surface Coating of Wood Building ways to control emissions of volatile potential for adverse environmental Products NESHAP). organic compounds (VOC) and volatile effects. The scope of the EPA’s risk This proposal includes both a residual organic HAP (VOHAP) from sources in analysis is consistent with the EPA’s risk assessment and a technology review various industries, including the wood response to comment on our policy of the emission sources subject to the building products manufacturing under the Benzene NESHAP where the Surface Coating of Wood Building industry; EPA explained that: • Product Data Sheets and Material Products NESHAP, which includes ‘‘[t]he policy chosen by the Administrator numerical emission limits for five Safety Data Sheets submitted with permits consideration of multiple measures compliance demonstrations; and of health risk. Not only can the MIR figure subcategories of wood building • products: Communication with trade groups be considered, but also incidence, the • Exterior siding and primed and associations representing industries presence of noncancer health effects, and the uncertainties of the risk estimates. In this doorskins; in the affected NAICS categories and • their members. way, the effect on the most exposed Flooring; individuals can be reviewed as well as the • Interior wall paneling or tileboard; III. Analytical Procedures impact on the general public. These factors • Other interior panels; and In this section, we describe the can then be weighed in each individual case. • Doors, windows, and analyses performed to support the This approach complies with the Vinyl miscellaneous. Chloride mandate that the Administrator proposed decisions for the RTR and ascertain an acceptable level of risk to the C. What data collection activities were other issues addressed in this proposal. public by employing his expertise to assess conducted to support this action? A. How do we consider risk in our available data. It also complies with the Congressional intent behind the CAA, which The EPA collected data from several decision-making? did not exclude the use of any particular environmental databases that included As discussed in section II.A of this measure of public health risk from the EPA’s information pertaining to wood building preamble and in the Benzene NESHAP, consideration with respect to CAA section products manufacturing facilities with in evaluating and developing standards 112 regulations, and thereby implicitly surface coating operations in the United permits consideration of any and all under CAA section 112(f)(2), we apply measures of health risk which the States. The primary databases were the a two-step approach to determine Administrator, in his judgment, believes are Enforcement and Compliance History whether or not risks are acceptable and appropriate to determining what will ‘protect Online (ECHO) database, the Toxics to determine if the standards provide an the public health’.’’ Release Inventory (TRI), and the ample margin of safety to protect public See 54 FR 38057, September 14, 1989. National Emissions Inventory (NEI) for health. As explained in the Benzene Thus, the level of the MIR is only one 2011 and 2014. Title V operating NESHAP, ‘‘the first step judgment on factor to be weighed in determining permits were obtained from states that acceptability cannot be reduced to any acceptability of risks. The Benzene have facilities subject to 40 CFR part 63, single factor’’ and, thus, ‘‘[t]he NESHAP explained that ‘‘an MIR of subpart QQQQ. For more details of the Administrator believes that the approximately one in 10 thousand title V operating permit review, see the acceptability of risk under section 112 is should ordinarily be the upper end of memorandum titled Preparation of the best judged on the basis of a broad set the range of acceptability. As risks Residual Risk Modeling Input File for of health risk measures and increase above this benchmark, they Subpart QQQQ in the docket for this information.’’ 54 FR 38046, September become presumptively less acceptable rulemaking (Docket ID No. EPA–HQ– 14, 1989. Similarly, with regard to the under CAA section 112, and would be OAR–2016–0678). No formal ample margin of safety determination, weighed with the other health risk information collection request was ‘‘the Agency again considers all of the measures and information in making an performed. health risk and other health information overall judgment on acceptability. Or, D. What other relevant background considered in the first step. Beyond that the Agency may find, in a particular information and data are available? information, additional factors relating case, that a risk that includes MIR less to the appropriate level of control will than the presumptively acceptable level In addition to the ECHO, TRI, and NEI also be considered, including cost and is unacceptable in the light of other databases, the EPA reviewed the economic impacts of controls, health risk factors.’’ Id. at 38045. additional information sources listed technological feasibility, uncertainties, Similarly, with regard to the ample below and consulted with stakeholders and any other relevant factors.’’ Id. margin of safety analysis, the EPA stated regulated under the Surface Coating of The Benzene NESHAP approach in the Benzene NESHAP that: ‘‘EPA Wood Building Products NESHAP to provides flexibility regarding factors the believes the relative weight of the many determine if there have been EPA may consider in making developments in practices, processes, or determinations and how the EPA may 2 The MIR is defined as the cancer risk associated control technologies by wood building weigh those factors for each source with a lifetime of exposure at the highest products surface coating sources. These category. The EPA conducts a risk concentration of HAP where people are likely to include: assessment that provides estimates of live. The HQ is the ratio of the potential exposure • to the HAP to the level at or below which no Permit limits and selected the MIR posed by the HAP emissions adverse chronic noncancer effects are expected; the compliance options from permits from each source in the source category, HI is the sum of HQs for HAP that affect the same collected from state agencies; the hazard index (HI) for chronic target organ or organ system.

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factors that can be considered in In response to the SAB MACT standards) that could result in selecting an ample margin of safety can recommendations, the EPA is additional emissions reduction; only be determined for each specific incorporating cumulative risk analyses • Any work practice or operational source category. This occurs mainly into its RTR risk assessments, including procedure that was not identified or because technological and economic those reflected in this proposal. The considered during development of the factors (along with the health-related Agency is (1) conducting facility-wide original MACT standards; factors) vary from source category to assessments, which include source • Any process change or pollution source category.’’ Id. at 38061. We also category emission points, as well as prevention alternative that could be consider the uncertainties associated other emission points within the broadly applied to the industry and that with the various risk analyses, as facilities; (2) combining exposures from was not identified or considered during discussed earlier in this preamble, in multiple sources in the same category development of the original MACT our determinations of acceptability and that could affect the same individuals; standards; and ample margin of safety. and (3) for some persistent and • Any significant changes in the cost The EPA notes that it has not bioaccumulative pollutants, analyzing (including cost effectiveness) of considered certain health information to the ingestion route of exposure. In applying controls (including controls date in making residual risk addition, the RTR risk assessments have the EPA considered during the determinations. At this time, we do not always considered aggregate cancer risk development of the original MACT attempt to quantify those HAP risks that from all carcinogens and aggregate standards). may be associated with emissions from noncancer HI from all noncarcinogens In addition to reviewing the practices, other facilities that do not include the affecting the same target organ system. processes, and control technologies that source category under review, mobile Although we are interested in placing were considered at the time we source emissions, natural source source category and facility-wide HAP originally developed (or last updated) emissions, persistent environmental risks in the context of total HAP risks the NESHAP, we review a variety of pollution, or atmospheric from all sources combined in the data sources in our investigation of transformation in the vicinity of the vicinity of each source, we are potential practices, processes, or sources in the category. concerned about the uncertainties of controls to consider. Among the sources The EPA understands the potential doing so. Because of the contribution to we reviewed were the NESHAP for importance of considering an total HAP risk from emission sources various industries that were individual’s total exposure to HAP in other than those that we have studied in promulgated since the MACT standards addition to considering exposure to depth during this RTR review, such being reviewed in this action. We HAP emissions from the source category estimates of total HAP risks would have reviewed the regulatory requirements and facility. We recognize that such significantly greater associated and/or technical analyses associated consideration may be particularly uncertainties than the source category or with these regulatory actions to identify important when assessing noncancer facility-wide estimates. Such aggregate any practices, processes, and control risks, where pollutant-specific exposure or cumulative assessments would technologies considered in these efforts health reference levels (e.g., reference compound those uncertainties, making that could be applied to emission concentrations (RfCs)) are based on the the assessments too unreliable. sources in the Surface Coating of Wood assumption that thresholds exist for Building Products source category, as adverse health effects. For example, the B. How do we perform the technology well as the costs, non-air impacts, and EPA recognizes that, although exposures review? energy implications associated with the attributable to emissions from a source Our technology review focuses on the use of these technologies. Finally, we category or facility alone may not identification and evaluation of reviewed information from other indicate the potential for increased risk developments in practices, processes, sources, such as state and/or local of adverse noncancer health effects in a and control technologies that have permitting agency databases and population, the exposures resulting occurred since the MACT standards industry-supported databases. from emissions from the facility in were promulgated. Where we identify C. How did we estimate post-MACT combination with emissions from all of such developments, in order to inform risks posed by the source category? the other sources (e.g., other facilities) to our decision of whether it is which an individual is exposed may be ‘‘necessary’’ to revise the emissions The EPA conducted a risk assessment sufficient to result in increased risk of standards, we analyze the technical that provides estimates of the MIR for adverse noncancer health effects. In feasibility of applying these cancer posed by the HAP emissions May 2010, the Science Advisory Board developments and the estimated costs, from each source in the source category, (SAB) advised the EPA ‘‘that RTR energy implications, and non-air the HI for chronic exposures to HAP assessments will be most useful to environmental impacts, and we also with the potential to cause noncancer decision makers and communities if consider the emission reductions. In health effects, and the HQ for acute results are presented in the broader addition, we consider the exposures to HAP with the potential to context of aggregate and cumulative appropriateness of applying controls to cause noncancer health effects. The risks, including background new sources versus retrofitting existing assessment also provides estimates of concentrations and contributions from sources. the distribution of cancer risks within other sources in the area.’’ 3 For this exercise, we consider any of the exposed populations, cancer the following to be a ‘‘development’’: incidence, and an evaluation of the 3 The EPA’s responses to this and all other key • Any add-on control technology or potential for adverse environmental recommendations of the SAB’s advisory on RTR other equipment that was not identified effects. The seven sections that follow risk assessment methodologies (which is available at: http://yosemite.epa.gov/sab/sabproduct.nsf/ and considered during development of this paragraph describe how we 4AB3966E263D943A8525771F00668381/$File/EPA- the original MACT standards; estimated emissions and conducted the SAB-10-007-unsigned.pdf) are outlined in a • Any improvements in add-on risk assessment. The docket for this memorandum to this rulemaking docket from David control technology or other equipment rulemaking contains the following Guinnup titled, EPA’s Actions in Response to the Key Recommendations of the SAB Review of RTR (that were identified and considered document which provides more Risk Assessment Methodologies. during development of the original information on the risk assessment

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inputs and models: Residual Risk state, local, and tribal air agencies for methanol, toluene, xylenes, ethyl Assessment for the Surface Coating of sources in their jurisdictions and benzene, methyl isobutyl ketone, glycol Wood Building Products Source supplemented with data developed by ethers, vinyl acetate, ethylene glycol, Category in Support of the March 2018 the EPA. The NEI database includes methyl methacrylate, formaldehyde, and Risk and Technology Review Proposed estimates of actual annual air pollutant dimethyl phthalate. Other than lead, Rule. The methods used to assess risks emissions from point and fugitive persistent and bioaccumulative HAP (as described in the seven primary steps sources and emission release (PB–HAP) were not reported as being below) are consistent with those peer- characteristic data, such as emission emitted from this source category. reviewed by a panel of the SAB in 2009 release height, temperature, diameter, Therefore, the only assessment of and described in their peer review velocity, and flow rates. The NEI multipathway risk was for lead, and that report issued in 2010; 4 they are also database also includes locational assessment compared the ambient air consistent with the key latitude/longitude coordinates. For more lead concentrations to the lead National recommendations contained in that details on the NEI, see https:// Ambient Air Quality Standard report. www.epa.gov/air-emissions-inventories/ (NAAQS). Further information about the multipathway analysis performed for 1. How did we estimate actual national-emissions-inventory-nei. The this category follows in section III.C.3.d. emissions and identify the emissions TRI tracks the management of certain release characteristics? toxic chemicals that may pose a threat 2. How did we estimate MACT- to human health and the environment allowable emissions? Data were extracted from the ECHO through annual facility reporting of how database to determine which facilities much of each chemical is released into The available emissions data in the were potentially subject to the Surface the environment. For more details on RTR emissions dataset include estimates Coating of Wood Building Products the TRI, see https://www.epa.gov/toxics- of the mass of HAP emitted during a NESHAP to develop a facility list. The release-inventory-tri-program/learn- specified annual time period. These ECHO database provides integrated about-toxics-release-inventory. ‘‘actual’’ emission levels are often lower compliance and enforcement We began compiling an initial draft than the emission levels allowed under information for about 800,000 regulated residual risk modeling input file for use the requirements of the current MACT facilities nationwide and it allows for in the Surface Coating of Wood Building standards. The emissions level allowed the search of information on permit Products NESHAP residual risk review to be emitted under the MACT data, inspection dates and findings, standards is referred to as the ‘‘MACT- in 2016.5 We made further updates to violations, and enforcement actions. For allowable’’ emissions level. We the source category facility list to more details on ECHO, see https:// discussed the use of both MACT- account for facilities that recently closed echo.epa.gov/resources/general-info/ allowable and actual emissions in the or reopened, added new products learn-more-about-echo. The ECHO final Coke Oven Batteries RTR (70 FR covered by the Surface Coating of Wood database identified 135 facilities as 19998–19999, April 15, 2005) and in the Building Products NESHAP, and/or potentially subject to the Surface proposed and final Hazardous Organic changed their surface coating equipment Coating of Wood Building Products NESHAP RTRs (71 FR 34428, June 14, or application techniques. NESHAP. Further review of the permits 2006, and 71 FR 76609, December 21, We estimated actual emissions based for these facilities found that 64 2006, respectively). In those actions, we on the 2014 NEI, preferentially, and facilities have surface coating of wood noted that assessing the risks at the building products operations, and 55 of subsequent site-specific inventory MACT-allowable level is inherently those facilities are subject to the revisions provided by states or reasonable since these risks reflect the requirements of 40 CFR part 63, subpart individual facilities. Where 2014 NEI maximum level facilities could emit and QQQQ. We are interested in your data were not available for a facility, we still comply with national emission comments on the development of the used data from the 2011 NEI and then standards. We also explained that it is facility list used in our analysis. For the 2014 TRI. Using this combination of reasonable to consider actual emissions, more details on the facility list EPA databases, we collected emissions where such data are available, in both development, see the memorandum information on the 55 sources in the steps of the risk analysis, in accordance titled Preparation of the Residual Risk category. We identified nine facilities with the Benzene NESHAP approach. Modeling Input File for Subpart QQQQ that reported zero HAP emissions for (54 FR 38044, September 14, 1989.) in the docket for this rulemaking the Surface Coating of Wood Building Actual emissions are often lower than (Docket ID No. EPA–HQ–OAR–2016– Products source category, and they were MACT-allowable emissions due to 0678). excluded from the risk modeling file. As compliance margins, more stringent As discussed in section II.C of this a result, the risk modeling file state or local rules, or over-control due preamble, we used data from facility characterized the impact of emissions to use of control technologies, permits, the 2014 NEI (version 1), and from 46 sources.6 equipment, or work practices that are the TRI as the basis for the emissions The total HAP emissions for the significantly better than required to used in the risk assessment for the source category, which were included in meet the NESHAP limits. However, over Surface Coating of Wood Building the modeling file, are approximately 260 90 percent of wood building products Products source category. The NEI is a tpy. Based on the available data, the manufacturers use compliant coatings database that contains information HAP emitted in the largest quantities are with low- or no-HAP emissions and about sources that emit criteria air production rate limits. We assume that pollutants (CAP), CAP precursors, and 5 For more information, see the memorandum in coatings in the category are engineered the docket titled Preparation of Residual Risk HAP. The NEI is released every 3 years Modeling Input File for Subpart QQQQ. The to meet the standard with a reasonable based primarily on data provided by memorandum describes the source of the inventory compliance margin. For those data, discusses quality assurance of the 40 CFR part operations, we would expect actual 4 U.S. EPA SAB. Risk and Technology Review 63, subpart QQQQ data, provides actual versus emissions to equal MACT-allowable allowable and acute risk multipliers for subpart (RTR) Risk Assessment Methodologies: For Review emissions, because of the use of the by the EPA’s Science Advisory Board with Case QQQQ sources, and identifies potential outliers and Studies—MACT I Petroleum Refining Sources and suspect data for further review. compliant coatings and/or low-HAP Portland Cement Manufacturing, May 2010. 6 Id. coatings. Additionally, for new sources,

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three of five new source limits in the hill height, which are also used in emitted by the modeled sources. Cancer NESHAP are zero-HAP limits, and, as a dispersion calculations. A third library incidence and the distribution of result, we assumed that the reported of pollutant-specific dose-response individual cancer risks for the actual emissions were equal to the values is used to estimate health risks. population within 50 km of the sources MACT-allowable emissions for these These dose-response values are the were also estimated for the source sources since the MACT-allowable latest values recommended by the EPA category by summing individual risks. A emissions are zero. For facilities using for HAP. They are available at https:// distance of 50 km is consistent with an add-on control, the operating permits www.epa.gov/fera/dose-response- both the analysis supporting the 1989 indicate that the coating lines may not assessment-assessing-health-risks- Benzene NESHAP (54 FR 38044, operate without controls. Therefore, we associated-exposure-hazardous-air- September 14, 1989) and the limitations assumed that MACT-allowable pollutants and are discussed in more of Gaussian dispersion models, emissions were equal to actual detail later in this section. including AERMOD. emissions. We are requesting comment c. Risk From Chronic Exposure to HAP on the assumption that actual and b. Risk From Chronic Exposure to HAP That May Cause Health Effects Other MACT-allowable emissions are the same That May Cause Cancer Than Cancer for this source category. In developing the risk assessment for 3. How did we conduct dispersion chronic exposures, we used the To assess the risk of noncancer health modeling, determine inhalation estimated annual average ambient air effects from chronic exposure to HAP, exposures, and estimate individual and concentrations of each HAP emitted by we calculate either an HQ or a target population inhalation risks? each source for which we have organ-specific hazard index (TOSHI). Both long-term and short-term emissions data in the source category. We calculate an HQ when a single inhalation exposure concentrations and The air concentrations at each nearby noncancer HAP is emitted. Where more health risks from the source category census block centroid were used as a than one noncancer HAP is emitted, we addressed in this proposal were surrogate for the chronic inhalation sum the HQ for each of the HAP that estimated using the Human Exposure exposure concentration for all the affects a common target organ system to Model (HEM–3). The HEM–3 performs people who reside in that census block. obtain a TOSHI. The HQ is the three primary risk assessment activities: We calculated the MIR for each facility estimated exposure divided by the (1) Conducting dispersion modeling to as the cancer risk associated with a chronic noncancer dose-response value, estimate the concentrations of HAP in continuous lifetime (24 hours per day, which is a value selected from one of ambient air, (2) estimating long-term 7 days per week, 52 weeks per year, for several sources. The preferred chronic and short-term inhalation exposures to a 70-year period) exposure to the noncancer dose-response value is the _ individuals residing within 50 maximum concentration at the centroid EPA RfC (https://iaspub.epa.gov/sor kilometers (km) of the modeled sources, of inhabited census blocks. Individual internet/registry/termreg/ and (3) estimating individual and cancer risks were calculated by searchandretrieve/glossariesand population-level inhalation risks using multiplying the estimated lifetime keywordlists/search.do?details= the exposure estimates and quantitative exposure to the ambient concentration &vocabName=IRIS%20Glossary), dose-response information. of each HAP (in micrograms per cubic defined as ‘‘an estimate (with uncertainty spanning perhaps an order a. Dispersion Modeling meter (mg/m3)) by its unit risk estimate (URE). The URE is an upper bound of magnitude) of a continuous The air dispersion model AERMOD, estimate of an individual’s probability inhalation exposure to the human used by the HEM–3 model, is one of the of contracting cancer over a lifetime of population (including sensitive EPA’s preferred models for assessing air exposure to a concentration of 1 subgroups) that is likely to be without pollutant concentrations from industrial an appreciable risk of deleterious effects 7 microgram of the pollutant per cubic facilities. To perform the dispersion meter of air. For residual risk during a lifetime.’’ In cases where an modeling and to develop the assessments, we generally use UREs RfC from the EPA’s IRIS database is not preliminary risk estimates, HEM–3 from the EPA’s Integrated Risk available or where the EPA determines draws on three data libraries. The first Information System (IRIS). For that using a value other than the RfC is is a library of meteorological data, carcinogenic pollutants without IRIS appropriate, the chronic noncancer which is used for dispersion values, we look to other reputable dose-response value can be a value from calculations. This library includes 1 sources of cancer dose-response values, the following prioritized sources, which year (2016) of hourly surface and upper often using California EPA (CalEPA) air observations from 824 UREs, where available. In cases where These classifications also coincide with the terms ‘‘known carcinogen, probable carcinogen, and meteorological stations selected to new, scientifically credible dose- provide coverage of the United States possible carcinogen,’’ respectively, which are the response values have been developed in terms advocated in the EPA’s Guidelines for and Puerto Rico. A second library of a manner consistent with the EPA Carcinogen Risk Assessment, published in 1986 (51 United States Census Bureau census guidelines and have undergone a peer FR 33992, September 24, 1986). In August 2000, the 8 document, Supplemental Guidance for Conducting block internal point locations and review process similar to that used by populations provides the basis of Health Risk Assessment of Chemical Mixtures the EPA, we may use such dose- (EPA/630/R–00/002), was published as a human exposure calculations (U.S. response values in place of, or in supplement to the 1986 document. Copies of both Census, 2010). In addition, for each addition to, other values, if appropriate. documents can be obtained from https:// cfpub.epa.gov/ncea/risk/recordisplay.cfm?deid= census block, the census library To estimate incremental individual includes the elevation and controlling 20533&CFID=70315376&CFTOKEN=71597944. lifetime cancer risks associated with Summing the risks of these individual compounds emissions from the facilities in the to obtain the cumulative cancer risks is an approach 7 U.S. EPA. Revision to the Guideline on Air that was recommended by the EPA’s SAB in their Quality Models: Adoption of a Preferred General source category, the EPA summed the 9 2002 peer review of the EPA’s National Air Toxics Purpose (Flat and Complex Terrain) Dispersion risks for each of the carcinogenic HAP Assessment (NATA) titled NATA—Evaluating the Model and Other Revisions (70 FR 68218, National-scale Air Toxics Assessment 1996 Data— November 9, 2005). 9 The EPA classifies carcinogens as: carcinogenic an SAB Advisory, available at http:// 8 A census block is the smallest geographic area to humans, likely to be carcinogenic to humans, and yosemite.epa.gov/sab/sabproduct.nsf/214C6E915BB for which census statistics are tabulated. suggestive evidence of carcinogenic potential. 04E14852570CA007A682C/$File/ecadv02001.pdf.

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define their dose-response values for a specified exposure duration.’’ 11 single exposures to chemicals.’’ 13 Id. at similarly to the EPA: (1) The Agency for Acute RELs are based on the most 1. The ERPG–1 is defined as ‘‘the Toxic Substances and Disease Registry sensitive, relevant, adverse health effect maximum airborne concentration below (ATSDR) Minimum Risk Level (http:// reported in the peer-reviewed medical which it is believed that nearly all www.atsdr.cdc.gov/mrls/index.asp); (2) and toxicological literature. They are individuals could be exposed for up to the CalEPA Chronic Reference Exposure designed to protect the most sensitive 1 hour without experiencing other than Level (REL) (http://oehha.ca.gov/air/ individuals in the population through mild transient adverse health effects or crnr/notice-adoption-air-toxics-hot- the inclusion of margins of safety. without perceiving a clearly defined, spots-program-guidance-manual- Because margins of safety are objectionable odor.’’ Id. at 2. Similarly, preparation-health-risk-0); or (3), as incorporated to address data gaps and the ERPG–2 is defined as ‘‘the noted above, a scientifically credible uncertainties, exceeding the REL does maximum airborne concentration below dose-response value that has been not automatically indicate an adverse which it is believed that nearly all developed in a manner consistent with health impact. AEGLs represent individuals could be exposed for up to the EPA guidelines and has undergone threshold exposure limits for the general one hour without experiencing or a peer review process similar to that public and are applicable to emergency developing irreversible or other serious used by the EPA. exposures ranging from 10 minutes to 8 health effects or symptoms which could hours.12 They are guideline levels for impair an individual’s ability to take d. Risk From Acute Exposure to HAP ‘‘once-in-a-lifetime, short-term protective action.’’ Id. at 1. That May Cause Health Effects Other exposures to airborne concentrations of An acute REL for 1-hour exposure Than Cancer acutely toxic, high-priority chemicals.’’ durations is typically lower than its For each HAP for which appropriate Id. at 21. The AEGL–1 is specifically corresponding AEGL–1 and ERPG–1. acute inhalation dose-response values defined as ‘‘the airborne concentration Even though their definitions are are available, the EPA also assesses the (expressed as ppm (parts per million) or slightly different, AEGL–1s are often the potential health risks due to acute mg/m3 (milligrams per cubic meter)) of same as the corresponding ERPG–1s, exposure. For these assessments, in a substance above which it is predicted and AEGL–2s are often equal to ERPG– order to avoid under-estimating effects, that the general population, including 2s. The maximum HQs from our acute the EPA makes conservative susceptible individuals, could inhalation screening risk assessment assumptions about emission rates, experience notable discomfort, typically result when we use the acute meteorology, and exposure location. We irritation, or certain asymptomatic REL for a HAP. In cases where the use the peak hourly emission rate,10 nonsensory effects. However, the effects maximum acute HQ exceeds 1, we also worst-case dispersion conditions, and, are not disabling and are transient and report the HQ based on the next highest in accordance with our mandate under reversible upon cessation of exposure.’’ acute dose-response value (usually the section 112 of the CAA, the point of Airborne concentrations below AEGL–1 AEGL–1 and/or the ERPG–1). highest off-site exposure to assess the represent exposure levels that can For this source category, we did not potential risk to the maximally exposed produce mild and progressively have short-term emissions data; individual. increasing but transient and therefore, we estimated the peak, short- nondisabling odor, taste, and sensory term emissions using available annual To characterize the potential health irritation or certain asymptomatic, emissions data from the NEI. We risks associated with estimated acute nonsensory effects.’’ Id. AEGL–2 are assumed that the peak, 1-hour emission inhalation exposures to a HAP, we defined as ‘‘the airborne concentration rate could exceed a facility’s annual generally use multiple acute dose- (expressed as parts per million or average hourly emission rate by as much response values, including acute RELs, milligrams per cubic meter) of a as a factor of 10, under worst-case acute exposure guideline levels substance above which it is predicted meteorological conditions. For facilities (AEGLs), and emergency response that the general population, including that used compliant coatings, the planning guidelines (ERPG) for 1-hour susceptible individuals, could default acute multiplier of 10 is overly exposure durations), if available, to experience irreversible or other serious, conservative because compliant coatings calculate acute HQs. The acute HQ is long-lasting adverse health effects or an result in an emissions profile that is not calculated by dividing the estimated impaired ability to escape.’’ Id. expected to have significant fluctuations acute exposure by the acute dose- ERPGs are developed for emergency in HAP emissions. Further review of response value. For each HAP for which planning and are intended as health- permits found that two facilities acute dose-response values are based guideline concentrations for utilizing the compliant coating available, the EPA calculates acute HQs. approach only operate coating An acute REL is defined as ‘‘the 11 CalEPA issues acute RELs as part of its Air operations for one 8-hour shift per day, concentration level at or below which Toxics Hot Spots Program, and the 1-hour and 8- therefore, an acute multiplier of 3 was hour values are documented in Air Toxics Hot used. The default multiplier of 10 was no adverse health effects are anticipated Spots Program Risk Assessment Guidelines, Part I, The Determination of Acute Reference Exposure applied to all other facilities. A further 10 In the absence of hourly emission data, we Levels for Airborne Toxicants, which is available at discussion of why these factors were develop estimates of maximum hourly emission http://oehha.ca.gov/air/general-info/oehha-acute-8- chosen can be found in the rates by multiplying the average actual annual hour-and-chronic-reference-exposure-level-rel- memorandum, Preparation of the emissions rates by a default factor (usually 10) to summary. account for variability. This is documented in 12 National Academy of Sciences, 2001. Standing Residual Risk Modeling Input File for Residual Risk Assessment for Residual Risk Operating Procedures for Developing Acute Assessment for the Surface Coating of Wood Exposure Levels for Hazardous Chemicals, page 2. 13 ERPGS Procedures and Responsibilities. March Building Products Source Category in Support of Available at https://www.epa.gov/sites/production/ 2014. American Industrial Hygiene Association. the March 2018 Risk and Technology Review files/2015-09/documents/sop_final_standing_ Available at: https://www.aiha.org/get-involved/ Proposed Rule, September, 2017 Risk and operating_procedures_2001.pdf. Note that the AIHAGuidelineFoundation/EmergencyResponse Technology Review Proposed Rule and in Appendix National Advisory Committee/AEGL Committee PlanningGuidelines/Documents/ 5 of the report: Analysis of Data on Short-term ended in October 2011, but the AEGL program ERPG%20Committee%20Standard%20 Emission Rates Relative to Long-term Emission continues to operate at the EPA and works with the Operating%20Procedures%20%20- Rates. Both are available in the docket for this National Academies to publish final AEGLs %20March%202014%20Revision%20%28 rulemaking. (https://www.epa.gov/aegl). Updated%2010-2-2014%29.pdf.

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Subpart QQQQ, available in the docket primary (health-based) lead NAAQS are media, we evaluate nine ecological for this rulemaking. considered to have a low potential for assessment endpoints, which are In our acute inhalation screening risk multipathway risk. defined by the ecological entity and its assessment, acute impacts are deemed For further information on the attributes. For PB–HAP (other than negligible for HAP where acute HQs are multipathway assessment approach, see lead), both community-level and less than or equal to 1 (even under the the Residual Risk Assessment for the population-level endpoints are conservative assumptions of the Surface Coating of Wood Building included. For acid gases, the ecological screening assessment), and no further Products Source Category in Support of assessment evaluated is terrestrial plant analysis is performed for these HAP. In the March 2018 Risk and Technology communities. cases where an acute HQ from the Review Proposed Rule, which is An ecological benchmark represents a screening step is greater than 1, we available in the docket for this action. concentration of HAP that has been linked to a particular environmental consider additional site-specific data to 5. How did we conduct the effect level. For each environmental develop a more refined estimate of the environmental risk screening HAP, we identified the available potential for acute impacts of concern. assessment? For this source category, we refined our ecological benchmarks for each analysis by reviewing the receptor a. Adverse Environmental Effects, assessment endpoint. We identified, locations where the maximum HQ Environmental HAP, and Ecological where possible, ecological benchmarks occurred. These refinements are Benchmarks at the following effect levels: Probable discussed more fully in the Residual The EPA conducts a screening effect levels, lowest-observed-adverse- Risk Assessment for the Surface Coating assessment to examine the potential for effect level, and no-observed-adverse- of Wood Building Products Source adverse environmental effects as effect level. In cases where multiple Category in Support of the March 2018 required under section 112(f)(2)(A) of effect levels were available for a Risk and Technology Review Proposed the CAA. Section 112(a)(7) of the CAA particular PB–HAP and assessment Rule, which is available in the docket defines ‘‘adverse environmental effect’’ endpoint, we use all of the available for this source category. as ‘‘any significant and widespread effect levels to help us to determine adverse effect, which may reasonably be whether ecological risks exist and, if so, 4. How did we conduct the anticipated, to wildlife, aquatic life, or whether the risks could be considered multipathway exposure and risk other natural resources, including significant and widespread. screening assessment? adverse impacts on populations of For further information on how the The EPA conducted a tiered screening endangered or threatened species or environmental risk screening assessment was conducted, including a assessment examining the potential for significant degradation of discussion of the risk metrics used, how significant human health risks due to environmental quality over broad the environmental HAP were identified, exposures via routes other than areas.’’ inhalation (i.e., ingestion). We first The EPA focuses on eight HAP, which and how the ecological benchmarks determined whether any sources in the are referred to as ‘‘environmental HAP,’’ were selected, see Appendix 9 of the source category emitted any PB–HAP, as in its screening assessment: six PB–HAP Residual Risk Assessment for the identified in the EPA’s Air Toxics Risk and two acid gases. The PB–HAP Surface Coating of Wood Building Assessment Library (see Volume 1, included in the screening assessment Products Source Category in Support of Appendix D, at http://www2.epa.gov/ are arsenic compounds, cadmium the March 2018 Risk and Technology fera/risk-assessment-and-modeling-air- compounds, dioxins/furans, polycyclic Review Proposed Rule, which is toxics-risk-assessment-reference- organic matter, mercury (both inorganic available in the docket for this action. library). mercury and methyl mercury), and lead b. Environmental Risk Screening For the Surface Coating of Wood compounds. The acid gases included in Methodology Building Products source category, we the screening assessment are For the environmental risk screening did not identify emissions of any PB– hydrochloric acid (HCl) and hydrogen assessment, the EPA first determined HAP except for lead compounds, for fluoride (HF). whether any facilities in the Surface which the lead NAAQS was applied to The HAP that persist and Coating of Wood Building Products assess multipathway impacts. Because bioaccumulate are of particular source category emitted any of the we did not identify PB–HAP emissions environmental concern because they environmental HAP. For the Surface requiring further evaluation, no further accumulate in the soil, sediment, and Coating of Wood Building Products evaluation of multipathway risk was water. The acid gases, HCl and HF, were source category, we identified emissions conducted for this source category. included due to their well-documented of lead compounds. In evaluating the potential potential to cause direct damage to Because one or more of the multipathway risk from emissions of terrestrial plants. In the environmental environmental HAP evaluated are lead compounds, rather than developing risk screening assessment, we evaluate emitted by at least one facility in the a screening threshold emission rate, we the following four exposure media: source category, we proceeded to the compare maximum estimated chronic Terrestrial soils, surface water bodies second step of the evaluation. inhalation exposure concentrations with (includes water-column and benthic To evaluate the potential for adverse the level of the current NAAQS for sediments), fish consumed by wildlife, environmental effects from lead, we lead.14 Values below the level of the and air. Within these four exposure compared the average modeled air concentrations (from HEM–3) of lead 14 In doing so, the EPA notes that the legal the Benzene NESHAP analysis) since it is designed standard for a primary NAAQS—that a standard is to protect the most susceptible group in the human around each facility in the source requisite to protect public health and provide an population—children, including children living category to the level of the secondary adequate margin of safety (CAA section 109(b))— near major lead emitting sources. 73 FR 67002/3; 73 NAAQS for lead. The secondary lead differs from the CAA section 112(f) standard FR 67000/3; 73 FR 67005/1. In addition, applying NAAQS is a reasonable means of (requiring, among other things, that the standard the level of the primary lead NAAQS at the risk provide an ‘‘ample margin of safety’’). However, the acceptability step is conservative, since that evaluating environmental risk because it primary lead NAAQS is a reasonable measure of primary lead NAAQS reflects an adequate margin is set to provide substantial protection determining risk acceptability (i.e., the first step of of safety. against adverse welfare effects which

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can include ‘‘effects on soils, water, assumptions in order to avoid under- transformation). We select other model crops, vegetation, man-made materials, estimating effects, ensures that our options that have the potential to animals, wildlife, weather, visibility and decisions are health and underestimate ambient impacts (e.g., not climate, damage to and deterioration of environmentally protective. A brief including building downwash). Other property, and hazards to transportation, discussion of the uncertainties in the options that we select have the potential as well as effects on economic values RTR emissions dataset, dispersion to either under- or overestimate ambient and on personal comfort and well- modeling, inhalation exposure levels (e.g., meteorology and receptor being.’’ estimates, and dose-response locations). On balance, considering the relationships follows below. Also directional nature of the uncertainties 6. How did we conduct facility-wide included are those uncertainties specific commonly present in ambient assessments? to our acute screening assessments, concentrations estimated by dispersion To put the source category risks in multipathway screening assessments, models, the approach we apply in the context, we typically examine the risks and our environmental risk screening RTR assessments should yield unbiased from the entire ‘‘facility,’’ where the assessments. A more thorough estimates of ambient HAP facility includes all HAP-emitting discussion of these uncertainties is concentrations. We also note that the operations within a contiguous area and included in the Residual Risk selection of meteorology dataset under common control. In other words, Assessment for the Surface Coating of location could have an impact on the we examine the HAP emissions not only Wood Building Products Source risk estimates. As we continue to update from the source category emission Category in Support of the March 2018 and expand our library of points of interest, but also emissions of Risk and Technology Review Proposed meteorological station data used in our HAP from all other emission sources at Rule, which is available in the docket risk assessments, we expect to reduce the facility for which we have data. for this action. If a multipathway site- this variability. For this source category, we specific assessment was performed for c. Uncertainties in Inhalation Exposure conducted the facility-wide assessment this source category, a full discussion of Assessment using a dataset that the EPA compiled the uncertainties associated with that from the 2014 NEI. We used the NEI assessment can be found in Appendix Although every effort is made to data for the facility and did not adjust 11 of that document, Site-Specific identify all of the relevant facilities and any category or ‘‘non-category’’ data. Human Health Multipathway Residual emission points, as well as to develop Therefore, there could be differences in Risk Assessment Report. accurate estimates of the annual the dataset from that used for the source emission rates for all relevant HAP, the category assessments described in this a. Uncertainties in the RTR Emissions uncertainties in our emission inventory preamble. We analyzed risks due to the Dataset likely dominate the uncertainties in the inhalation of HAP that are emitted Although the development of the RTR exposure assessment. Some ‘‘facility-wide’’ for the populations emissions dataset involved quality uncertainties in our exposure residing within 50 km of each facility, assurance/quality control (QC) assessment include human mobility, consistent with the methods used for processes, the accuracy of emissions using the centroid of each census block, the source category analysis described values will vary depending on the assuming lifetime exposure, and above. For these facility-wide risk source of the data, the degree to which assuming only outdoor exposures. For analyses, we made a reasonable attempt data are incomplete or missing, the most of these factors, there is neither an to identify the source category risks, and degree to which assumptions made to under nor overestimate when looking at these risks were compared to the complete the datasets are accurate, the maximum individual risks or the facility-wide risks to determine the errors in emission estimates, and other incidence, but the shape of the portion of facility-wide risks that could factors. The emission estimates distribution of risks may be affected. be attributed to the source category considered in this analysis generally are With respect to outdoor exposures, addressed in this proposal. We also annual totals for certain years, and they actual exposures may not be as high if specifically examined the facility that do not reflect short-term fluctuations people spend time indoors, especially was associated with the highest estimate during the course of a year or variations for very reactive pollutants or larger of risk and determined the percentage of from year to year. The estimates of peak particles. For all factors, we reduce that risk attributable to the source hourly emission rates for the acute uncertainty when possible. For category of interest. The Residual Risk effects screening assessment were based example, with respect to census-block Assessment for the Surface Coating of on an emission adjustment factor centroids, we analyze large blocks using Wood Building Products Source applied to the average annual hourly aerial imagery and adjust locations of Category in Support of the March 2018 emission rates, which are intended to the block centroids to better represent Risk and Technology Review Proposed account for emission fluctuations due to the population in the blocks. We also Rule, available through the docket for normal facility operations. add additional receptor locations where this action, provides the methodology the population of a block is not well b. Uncertainties in Dispersion Modeling and results of the facility-wide analyses, represented by a single location. including all facility-wide risks and the We recognize there is uncertainty in d. Uncertainties in Dose-Response percentage of source category ambient concentration estimates Relationships contribution to facility-wide risks. associated with any model, including the EPA’s recommended regulatory There are uncertainties inherent in 7. How did we consider uncertainties in dispersion model, AERMOD. In using a the development of the dose-response risk assessment? model to estimate ambient pollutant values used in our risk assessments for Uncertainty and the potential for bias concentrations, the user chooses certain cancer effects from chronic exposures are inherent in all risk assessments, options to apply. For RTR assessments, and noncancer effects from both chronic including those performed for this we select some model options that have and acute exposures. Some proposal. Although uncertainty exists, the potential to overestimate ambient air uncertainties are generally expressed we believe that our approach, which concentrations (e.g., not including quantitatively, and others are generally used conservative tools and plume depletion or pollutant expressed in qualitative terms. We note,

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as a preface to this discussion, a point risk characterization as potential e. Uncertainties in Acute Inhalation on dose-response uncertainty that is uncertainties. Screening Assessments stated in the EPA’s 2005 Cancer Uncertainty also exists in the In addition to the uncertainties Guidelines; namely, that ‘‘the primary selection of ecological benchmarks for highlighted above, there are several goal of EPA actions is protection of the environmental risk screening factors specific to the acute exposure human health; accordingly, as an assessment. We established a hierarchy assessment that the EPA conducts as Agency policy, risk assessment of preferred benchmark sources to allow part of the risk review under section 112 procedures, including default options selection of benchmarks for each of the CAA. The accuracy of an acute that are used in the absence of scientific environmental HAP at each ecological inhalation exposure assessment data to the contrary, should be health assessment endpoint. We searched for depends on the simultaneous protective’’ (EPA’s 2005 Cancer benchmarks for three effect levels (i.e., occurrence of independent factors that Guidelines, pages 1–7). This is the no-effects level, threshold-effect level, may vary greatly, such as hourly approach followed here as summarized and probable effect level), but not all emissions rates, meteorology, and the in the next paragraphs. combinations of ecological assessment/ presence of humans at the location of Cancer UREs used in our risk environmental HAP had benchmarks for the maximum concentration. In the assessments are those that have been all three effect levels. Where multiple acute screening assessment that we developed to generally provide an upper effect levels were available for a conduct under the RTR program, we bound estimate of risk. That is, they particular HAP and assessment assume that peak emissions from the represent a ‘‘plausible upper limit to the endpoint, we used all of the available source category and worst-case true value of a quantity’’ (although this effect levels to help us determine meteorological conditions co-occur, is usually not a true statistical whether risk exists and whether the risk thus, resulting in maximum ambient confidence limit).15 In some could be considered significant and concentrations. These two events are circumstances, the true risk could be as widespread. unlikely to occur at the same time, Although every effort is made to low as zero; however, in other making these assumptions conservative identify appropriate human health effect circumstances the risk could be in the sense that they may over-estimate 16 dose-response values for all pollutants greater. Chronic noncancer RfC and effects. We then include the additional emitted by the sources in this risk reference dose (RfD) values represent assumption that a person is located at assessment, some HAP emitted by this chronic exposure levels that are this point during this same time period. source category are lacking dose- intended to be health-protective levels. For this source category, these response assessments. Accordingly, To derive dose-response values that are assumptions would tend to be worst- intended to be ‘‘without appreciable these pollutants cannot be included in the quantitative risk assessment, which case actual exposures as it is unlikely risk,’’ the methodology relies upon an that a person would be located at the uncertainty factor (UF) approach (U.S. could result in quantitative estimates understating HAP risk. To help to point of maximum exposure during the EPA, 1993 and 1994) which considers time when peak emissions and worst- uncertainty, variability, and gaps in the alleviate this potential underestimate, where we conclude similarity with a case meteorological conditions occur available data. The UFs are applied to simultaneously. derive dose-response values that are HAP for which a dose-response value is intended to protect against appreciable available, we use that value as a IV. Analytical Results and Proposed risk of deleterious effects. surrogate for the assessment of the HAP Decisions Many of the UFs used to account for for which no value is available. To the extent use of surrogates indicates A. What are the results of the risk variability and uncertainty in the assessment and analyses? development of acute dose-response appreciable risk, we may identify a need values are quite similar to those to increase priority for an IRIS As described above, for the Surface developed for chronic durations. assessment for that substance. We Coating of Wood Building Products Additional adjustments are often additionally note that, generally source category, we conducted an applied to account for uncertainty in speaking, HAP of greatest concern due inhalation risk assessment for all HAP extrapolation from observations at one to environmental exposures and hazard emitted, and multipathway and exposure duration (e.g., 4 hours) to are those for which dose-response environmental risk screening derive an acute dose-response value at assessments have been performed, assessments on the only PB–HAP another exposure duration (e.g., 1 hour). reducing the likelihood of understating emitted, lead. We present results of the Not all acute dose-response values are risk. Further, HAP not included in the risk assessment briefly below and in developed for the same purpose, and quantitative assessment are assessed more detail in the residual risk care must be taken when interpreting qualitatively and considered in the risk document titled Residual Risk the results of an acute assessment of characterization that informs the risk Assessment for the Surface Coating of human health effects relative to the management decisions, including Wood Building Products Source dose-response value or values being consideration of HAP reductions Category in Support of the March 2018 achieved by various control options. exceeded. Where relevant to the Risk and Technology Review Proposed For a group of compounds that are estimated exposures, the lack of acute Rule, which is available in the docket unspeciated (e.g., glycol ethers), we for this action. dose-response values at different levels conservatively use the most protective of severity should be factored into the dose-response value of an individual 1. Inhalation Risk Assessment Results compound in that group to estimate Table 2 of this preamble provides an 15 IRIS glossary (https://ofmpub.epa.gov/sor_ internet/registry/termreg/searchandretrieve/ risk. Similarly, for an individual overall summary of the results of the glossariesandkeywordlists/search.do?details= compound in a group (e.g., ethylene inhalation risk assessment. As discussed &glossaryName=IRIS%20Glossary). glycol diethyl ether) that does not have in section III.C.2 of this preamble, we 16 An exception to this is the URE for benzene, a specified dose-response value, we also set MACT-allowable HAP emission which is considered to cover a range of values, each end of which is considered to be equally plausible, apply the most protective dose-response levels equal to actual emissions. For and which is based on maximum likelihood value from the other compounds in the more detail about the MACT-allowable estimates. group to estimate risk. emission levels, see the memorandum,

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Preparation of Residual Risk Modeling Input File for Subpart QQQQ,5 which is available in the docket for this action.

TABLE 2—SURFACE COATING OF WOOD BUILDING PRODUCTS INHALATION RISK ASSESSMENT RESULTS 1

Maximum Estimated popu- Maximum individual lation at increased Estimated annual Maximum chronic Risk assessment Number of cancer incidence noncancer screening acute facilities 2 cancer risk risk of cancer (cases per year) TOSHI 4 noncancer HQ 5 (in 1 million) 3 ≥1-in-1 Million

Source Category .. 46 6 800 0.0006 0.05 1 Facility-Wide ...... 46 30 26,000 0.004 7 ...... 1 Based on actual and allowable emissions. For this source category, actual and allowable emissions are identical, so a separate risk assess- ment was not conducted for allowable emissions. 2 Number of facilities evaluated in the risk assessment. As described elsewhere, there are additional facilities included in the data set for the technology review. 3 Maximum individual excess lifetime cancer risk due to HAP emissions from the source category. 4 Maximum TOSHI. The target organ with the highest TOSHI for the wood building products source category is the respiratory system. 5 The maximum estimated acute exposure concentration was divided by available short-term threshold values to develop an array of HQ val- ues. HQ values shown use the lowest available acute threshold value, which in most cases is the REL. When an HQ exceeds 1, we also show the HQ using the next lowest available acute dose-response value.

The inhalation risk modeling indicate that the maximum off-facility- of the secondary NAAQS for lead, and performed to estimate risks based on site acute HQ is 1, based on the REL if the total annual emissions occurred actual and allowable emissions relied value for formaldehyde, and occurs at during a 3-month period, the maximum primarily on emissions data from the two facilities. One of these two facilities 3-month rolling average concentration NEI. The results of the inhalation cancer used the acute factor of 3 to characterize would still be only 0.5 percent of the risk assessment, as shown in Table 2 of short-term emissions, while the other NAAQS. Therefore, we do not expect an this preamble, indicate that the MIR used the factor of 10. For all other HAP adverse environmental effect as a result could be up to 6-in-1 million, with and facilities, acute HQ values are less of HAP emissions from this source formaldehyde from the melamine than 1. Refer to the document titled category. laminating process as the sole Preparation of the Residual Risk 5. Facility-Wide Risk Results contributor (100 percent) to the MIR. Modeling Input File for Subpart QQQQ The total estimated cancer incidence (available in the docket for this action) An assessment of the facility-wide from wood building product coating for a detailed description of how the risks was performed to provide context sources based on actual emission levels acute factors were developed for this for the source category risks, using NEI is 0.0006 excess cancer cases per year or source category. For more detailed acute data as described above. The maximum one case every 1,667 years, with risk results, refer to the residual risk facility-wide cancer MIR is 30-in-1 emissions of formaldehyde (35 percent), document titled Residual Risk million, mainly driven by naphthalene (27 percent), ethyl benzene Assessment for the Surface Coating of formaldehyde, chromium (VI) (21 percent), and chromium (VI) Wood Building Products Source compounds, and nickel compounds compounds (17 percent) contributing to Category in Support of the March 2018 emissions from wood drying and the cancer incidence. In addition, we Risk and Technology Review Proposed enamel coating operations. Wood drying estimate that approximately 800 people Rule, which is available in the docket is regulated under 40 CFR part 63, have cancer risks greater than or equal for this action. subpart DDDD, the Plywood and to 1-in-1 million. Composite Wood Products NESHAP, 3. Multipathway Risk Screening Results The maximum modeled chronic and enamel coating is regulated under noncancer HI (TOSHI) value for the The only PB–HAP emitted by 40 CFR part 63, subpart RRRR, the source category based on actual facilities in this source category is lead. Surface Coating of Metal Furniture emissions is estimated to be 0.05, with Results of the analysis for lead indicate NESHAP. Risk and technology reviews emissions of formaldehyde from the that based on actual emissions, the are currently underway for both melamine laminating process as the sole maximum annual off-site ambient lead NESHAP categories. The total estimated contributor (100 percent) to the TOSHI. concentration was only 0.1 percent of cancer incidence from the facility-wide The target organ affected is the the primary NAAQS for lead, and if the assessment is 0.004 excess cancer cases respiratory system. There are not any total annual emissions occurred during per year, or one excess case in every 250 people estimated to have exposure to HI a 3-month period, the maximum 3- years. Approximately 26,000 people are levels greater than 1 as a result of month rolling average concentration estimated to have cancer risks greater emissions from this source category. would still be only 0.5 percent of the than 1-in-1 million from exposure to NAAQS. Therefore, we do not expect HAP emitted from both MACT and non- 2. Acute Risk Results any human health multipathway risks MACT sources. The maximum facility- Table 2 of this preamble shows the as a result of emissions from this source wide TOSHI is estimated to be 7, mainly acute risk results for this category. The category. driven by emissions of acrolein from screening analysis for acute impacts was industrial processes related to wood based on actual emissions, and to 4. Environmental Risk Screening Results products that are characterized as estimate the peak emission rates from The only environmental HAP emitted ‘‘other, not classified’’ in NEI. Wood the average rates, an industry-specific by facilities in this source category is drying, regulated under 40 CFR part 63, multiplier of 3 was used for two lead. Results of the analysis for lead subpart DDDD, noted above, is facilities, and a default factor of 10 was indicate that based on actual emissions, presumably the source of the acrolein used for the remaining facilities. The the maximum annual off-site ambient since the facilities identified as sources results of the acute screening analysis lead concentration was only 0.1 percent also dry wood. We estimate that

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approximately 900 people are exposed analysis, which is an assessment of risks within the populations living near to noncancer HI levels above 1, based on to individual demographic groups of the facilities.17 facility-wide emissions. populations living within 5 km and The results of the demographic 6. What demographic groups might within 50 km of the facilities. In the analysis are summarized in Table 3 benefit from this regulation? analysis, we evaluated the distribution below. These results, for various of HAP-related cancer and noncancer To examine the potential for any demographic groups, are based on the risks from the Surface Coating of Wood environmental justice (EJ) issues that estimated risks from actual emissions Building Products source category might be associated with the source levels for the population living within category, we performed a demographic across different demographic groups 50 km of the facilities.

TABLE 3—SURFACE COATING OF WOOD BUILDING PRODUCTS SOURCE CATEGORY DEMOGRAPHIC RISK ANALYSIS RESULTS

Population with cancer risk at or Population with above 1-in-1 chronic hazard Nationwide million due to index above 1 due wood building to wood building products surface products surface coating coating

Total Population ...... 317,746,049 800 0

Race by Percent

White ...... 62 16 0 All Other Races ...... 38 84 0

Race by Percent

White ...... 62 16 0 African American ...... 12 75 0 Native American ...... 0.8 0.0 0 Other and Multiracial ...... 7 3 0

Ethnicity by Percent

Hispanic ...... 18 6 0 Non-Hispanic ...... 82 94 0

Income by Percent

Below Poverty Level ...... 14 19 0 Above Poverty Level ...... 86 81 0

Education by Percent

Over 25 and without High School Diploma ...... 14 25 0 Over 25 and with a High School Diploma ...... 86 75 0

The results of the Surface Coating of the corresponding nationwide B. What are our proposed decisions Wood Building Products source percentages. regarding risk acceptability, ample category demographic analysis indicate The methodology and the results of margin of safety, and adverse that emissions from the source category the demographic analysis are presented environmental effects? expose approximately 800 people to a in a technical report, Risk and 1. Risk Acceptability cancer risk at or above 1-in-1 million Technology Review—Analysis of As noted in section II.A of this and no people to a chronic noncancer Demographic Factors for Populations preamble, the EPA sets standards under TOSHI greater than 1. The percentages Living Near Wood Building Products CAA section 112(f)(2) using ‘‘a two-step of the at-risk population are greater than Surface Coating Facilities, available in standard-setting approach, with an their respective nationwide percentages the docket for this action. analytical first step to determine an for the following demographic groups ‘acceptable risk’ that considers all (excluding non-Hispanic): African health information, including risk American, people over 25 without a estimation uncertainty, and includes a high school diploma, and people living presumptive limit on MIR of below the poverty level. The other ‘‘approximately 1-in-10 thousand’’ (54 demographic groups within the exposed FR 38045, September 14, 1989). We population were similar to or lower than weigh all health risk factors in our risk

17 Demographic groups included in the analysis children 17 years of age and under, adults 18 to 64 the poverty level, people living two times the are: White, African American, Native American, years of age, adults 65 years of age and over, adults poverty level, and linguistically isolated people. other races and multiracial, Hispanic or Latino, without a high school diploma, people living below

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acceptability determination, including effective controls or other measures that not an adverse environmental effect as the cancer MIR, cancer incidence, the would reduce emissions further to a result of HAP emissions from the maximum cancer TOSHI, the maximum provide an ample margin of safety with Surface Coatings of Wood Building acute noncancer HQ, the extent of respect to the risks associated with these Products source category.19 Thus, we noncancer risks, the distribution of emissions. are proposing that it is not necessary to cancer and noncancer risks in the Although we are proposing that the set a more stringent standard. exposed population, and the risk risks from this source category are C. What are the results and proposed estimation uncertainties. acceptable, risk estimates for decisions based on our technology For this risk assessment, the EPA approximately 800 people in the review? estimated risks based on actual and exposed population are above 1-in-1 allowable emissions from wood million, caused by formaldehyde 1. How did we evaluate technological building products surface coating emissions from one facility. The developments? sources. Allowable emissions were maximum acute risk is an HQ of 1 also estimated to be equal to actual Section 112(d)(6) of the CAA requires caused by formaldehyde. As a result, we a review of ‘‘developments in practices, emissions. The estimated inhalation further considered whether the MACT cancer risk to the individual most processes and control technologies’’ in standards for this source category each source category as part of the exposed to emissions from the source provide an ample margin of safety to category is 6-in-1-million. technology review process. For this protect public health. technology review, the ‘‘developments’’ Approximately 800 people face an Our technology review did not increased cancer risk greater than we consider include: identify any new practices, controls, or • Add-on control technology that was 1-in-1 million due to inhalation process options that are being used in exposure to HAP emissions from this not identified during the NESHAP this industry, or in other industries, that development; source category. The risk analysis would be cost effective and result in • indicates very low cancer incidence improvement to an existing add-on further reduction of formaldehyde control technology resulting in (0.0006 excess cancer cases per year, or emissions.18 Our review of the operating one excess case every 1,667 years), as significant additional HAP emissions permits for major sources subject to the reductions; well as low potential for adverse Surface Coating of Wood Building • chronic noncancer health effects. The work practice or operational Products MACT did not reveal any procedure that was not previously acute screening assessment indicates no facilities with limits set below the pollutants or facilities exceeding an HQ identified; current new or existing source limits • process change or pollution value of 1. Therefore, we find there is (Tables 1 and 2, 40 CFR part 63, subpart prevention alternative that was not little potential concern of acute QQQQ). Limits set below the current noncancer health impacts. In evaluating identified; or standards would have been an • a coating formulation or application the potential for multipathway effects indication that improved controls or technique that was not previously from emissions of lead from the source lower emission compliant coatings were identified. category, the risk assessment indicates available. As discussed in the no significant potential for technology review memorandum, our 2. What was our analysis and multipathway effects. review of the RACT/BACT/LAER conclusions regarding technological Considering all of the health risk Clearinghouse (RBLC) identified three developments? information and factors discussed sources that are potentially covered Our review of the developments in above, including the uncertainties under 40 CFR part 63, subpart QQQQ, technology for the Surface Coating of discussed in section III of this preamble, the EPA proposes that the risks from the but none contained new control Wood Building Products source Surface Coating of Wood Building methods. category did not reveal any changes that Products source category are acceptable. Because no new controls, require revisions to the emission technologies, processes, or work standards. In the original NESHAP, it 2. Ample Margin of Safety Analysis and practices were identified to reduce was noted that ‘‘the most prevalent form Proposed Controls formaldehyde emissions and the risk of emission control for surface coating As directed by CAA section 112(f)(2), assessment determined that the health of wood building products is the use of we conducted an analysis to determine risks associated with HAP emissions low-VOC and low-HAP coatings, such if the current emissions standards remaining after implementation of the as waterborne or ultraviolet-cured provide an ample margin of safety to Surface Coating of Wood Building coatings.’’ 20 protect public health. Under the ample Products MACT were acceptable, we are Our review did not identify any new margin of safety analysis, the EPA proposing that the current standards or improved add-on control technology, considers all health factors evaluated in protect public health with an ample any new work practices, operational the risk assessment and evaluates the margin of safety. procedures, process changes, or new pollution prevention approaches that cost and feasibility of available control 3. Adverse Environmental Effects technologies and other measures reduce emissions in the category that (including the controls, measures, and The emissions data for this source have been implemented at wood costs reviewed under the technology category indicate the presence of one building products surface coating review) that could be applied to this environmental HAP, lead, emitted by source category to further reduce the sources within this source category. 19 The environmental screening analysis is Based on the results of our documented in Residual Risk Assessment for Wood risks (or potential risks) due to Building Products Surface Coating Sources in emissions of HAP identified in our risk environmental risk screening Support of the February 2018 Risk and Technology assessment. In this analysis, we assessment, we conclude that there is Review Proposed Rule, in the docket for this action. considered the results of the technology 20 Preliminary Industry Characterization: Wood 18 Technology Review for the Surface Coating of Building Products Surface Coating. Publication No. review, risk assessment, and other Wood Building Products Source Category— EPA–453/R–00–004. September 1998. Available at aspects of our MACT rule review to Proposed Rule; see Docket ID No. EPA–HQ–OAR– https://www3.epa.gov/airtoxics/coat/flatw/ determine whether there are any cost- 2016–0678. wbppic.pdf.

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operations since promulgation of the revise certain recordkeeping and of startup and shutdown are included, current NESHAP. Consequently, we reporting requirements related to the but, because of operational requirements propose that no revisions to the SSM exemption as further described in the category, are a very small NESHAP are necessary pursuant to CAA below. component of the emissions calculation. section 112(d)(6). The EPA has attempted to ensure that Therefore, we are not proposing the provisions we are proposing to separate standards for startup and/or D. What other actions are we proposing? eliminate are inappropriate, shutdown periods. In addition to the proposed unnecessary, or redundant in the Periods of malfunction. Periods of determinations described above, we are absence of the SSM exemption. We are startup, normal operations, and proposing additional revisions. We are specifically seeking comment on shutdown are all predictable and proposing revisions to the SSM whether we have successfully done so. routine aspects of a source’s operations. provisions of the MACT rule in order to The EPA believes the removal of the Malfunctions, in contrast, are neither ensure that they are consistent with the SSM exemption creates no additional predictable nor routine. Instead they Court decision in Sierra Club v. EPA, burden to facilities regulated under the are, by definition, sudden, infrequent, 551 F.3d 1019 (D.C. Cir. 2008), which Surface Coating of Wood Building and not reasonably preventable failures vacated two provisions that exempted Products NESHAP. Deviations currently of emissions control, process or sources from the requirement to comply addressed by a facility’s SSM Plan are monitoring equipment. (40 CFR 63.2, with otherwise applicable CAA section required to be reported in the definition of malfunction). The EPA 112(d) emission standards during Semiannual Compliance Report, a interprets CAA section 112 as not periods of SSM. We also are proposing requirement that remains under the requiring emissions that occur during various other changes, including an proposal (40 CFR 63.4720). Facilities periods of malfunction to be factored alternative compliance calculation, will no longer need to develop an SSM into development of CAA section 112 electronic submittal of notifications, Plan or keep it current (Table 4, 40 CFR standards and this reading has been compliance reports, and performance part 63, subpart QQQQ). Facilities will upheld as reasonable by the Court in test reports, a new EPA test method, also no longer have to file special SSM U.S. Sugar Corp. v. EPA, 830 F.3d 579, incorporation by reference (IBR) of reports for deviations not described in 606–610 (2016). Under CAA section several test methods (listed in section the their SSM Plan [40 CFR 112, emissions standards for new IV.D.5 below), and various technical 63.4720(c)(2)]. We are specifically sources must be no less stringent than and editorial changes. Additionally, we seeking comment on whether we have the level ‘‘achieved’’ by the best are requesting comment on repeat successfully removed SSM exemptions controlled similar source and for emissions testing requirements for without adding unforeseen burden. existing sources generally must be no facilities that demonstrate compliance Periods of startup and shutdown. In less stringent than the average emission with the standards using add-on control proposing the standards in this rule, the limitation ‘‘achieved’’ by the best devices. Our analyses and proposed EPA has taken into account startup and performing 12 percent of sources in the changes related to these issues are shutdown periods and, for the reasons category. There is nothing in CAA discussed in sections IV.D.1 through 6 explained below, is not proposing section 112 that directs the Agency to of this preamble. alternate standards for those periods. consider malfunctions in determining For add-on control systems, the 1. Startup, Shutdown, and Malfunction the level ‘‘achieved’’ by the best Surface Coating of Wood Building performing sources when setting In its 2008 decision in Sierra Club v. Products NESHAP requires the emission standards. As the Court has EPA, 551 F.3d 1019 (D.C. Cir. 2008), the measurement of thermal oxidizer (TO) recognized, the phrase ‘‘average Court vacated portions of two operating temperature or catalytic emissions limitation achieved by the provisions in the EPA’s CAA section oxidizer (CO) average temperature best performing 12 percent of’’ sources 112 regulations governing the emissions across the catalyst bed as well as other ‘‘says nothing about how the of HAP during periods of SSM. types of parameter monitoring. performance of the best units is to be Specifically, the Court vacated the SSM Parameter limits apply at all times, calculated.’’ National Association of exemption contained in 40 CFR including during periods of startup and Clean Water Agencies v. EPA, 734 F.3d 63.6(f)(1) and 40 CFR 63.6(h)(1), holding shutdown. The Surface Coating of Wood 1115, 1141 (D.C. Cir. 2013). While the that under section 302(k) of the CAA, Building Products NESHAP requires TO EPA accounts for variability in setting emissions standards or limitations must or CO operating temperature and other emissions standards, nothing in CAA be continuous in nature and that the add-on control device operating section 112 requires the Agency to SSM exemption violates the CAA’s parameters to be recorded at least once consider malfunctions as part of that requirement that some CAA section 112 every 15 minutes. The Surface Coating analysis. The EPA is not required to standards apply continuously. of Wood Building Products NESHAP treat a malfunction in the same manner We are proposing the elimination of specifies in 40 CFR 63.4763(c) that if an as the type of variation in performance the SSM exemption in this rule, which operating parameter is out of the that occurs during routine operations of appears at 40 CFR 63.4700, 40 CFR allowed range, this is a deviation from a source. A malfunction is a failure of 63.4720, and in Table 4 to Subpart the operating limit and must be reported the source to perform in ‘‘normal or QQQQ of Part 63. Consistent with Sierra as specified in 40 CFR 63.4710(c)(6) and usual manner,’’ and no statutory Club v. EPA, we are proposing standards 63.4720(a)(7). language compels the EPA to consider in this rule that apply at all times. We Our permit review of the facilities such events in setting CAA section 112 are also proposing several revisions to using add-on control as a compliance standards. Table 4 (the General Provisions approach indicated that all were As the Court recognized in U.S. Sugar Applicability Table) as is explained in required, by permit, to have their Corporation, accounting for more detail below. For example, we are control system in operation during all malfunctions in setting standards would proposing to eliminate the incorporation time periods when coating processes be difficult, if not impossible, given the of the General Provisions’ requirement were operational. The rule requires myriad different types of malfunctions that the source develop an SSM plan. compliance based on a 12-month rolling that can occur across all sources in the We also are proposing to eliminate and average emissions calculation. Periods category and given the difficulties

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associated with predicting or accounting Although no statutory language a. General Duty for the frequency, degree, and duration compels the EPA to set standards for We are proposing to revise the of various malfunctions that might malfunctions, the EPA has the General Provisions table (Table 4) entry occur. Id. at 608 (‘‘the EPA would have discretion to do so where feasible. For for 40 CFR 63.6(e)(1)–(2) by to conceive of a standard that could example, in the Petroleum Refinery redesignating it as 40 CFR 63.6(e)(1)(i) apply equally to the wide range of Sector RTR, the EPA established a work and changing the ‘‘yes’’ in column 3 to possible boiler malfunctions, ranging practice standard for unique types of a ‘‘no.’’ Section 63.6(e)(1)(i) describes from an explosion to minor mechanical malfunction that result in releases from the general duty to minimize emissions. defects. Any possible standard is likely pressure relief devices or emergency Some of the language in that section is to be hopelessly generic to govern such flaring events because information was no longer necessary or appropriate a wide array of circumstances.’’) As available to determine that such work considering the elimination of the SSM such, the performance of units that are practices reflected the level of control exemption. We are proposing instead to malfunctioning is not ‘‘reasonably’’ that applies to the best performing sources. 80 FR 75178, 75211–14 add general duty regulatory text at 40 foreseeable. See, e.g., Sierra Club v. CFR 63.4700(b) that reflects the general EPA, 167 F.3d 658, 662 (D.C. Cir. 1999) (December 1, 2015). The EPA will consider whether circumstances warrant duty to minimize emissions while (‘‘The EPA typically has wide latitude eliminating the reference to periods in determining the extent of data- setting work practice standards for a particular type of malfunction and, if so, covered by an SSM exemption. The gathering necessary to solve a problem. current language in 40 CFR 63.6(e)(1)(i) We generally defer to an agency’s whether the EPA has sufficient information to identify the relevant best characterizes what the general duty decision to proceed on the basis of entails during periods of SSM. With the imperfect scientific information, rather performing sources and establish a standard for such malfunctions. We also elimination of the SSM exemption, than to ‘invest the resources to conduct there is no need to differentiate between the perfect study.’’’) See also, encourage commenters to provide any such information. normal operations and SSM events in Weyerhaeuser v. Costle, 590 F.2d 1011, describing the general duty. Therefore, In the event that a source fails to 1058 (D.C. Cir. 1978) (‘‘In the nature of the language the EPA is proposing for 40 comply with the applicable CAA section things, no general limit, individual CFR 63.4700(b) does not include that 112(d) standards as a result of a permit, or even any upset provision can language from 40 CFR 63.6(e)(1). anticipate all upset situations. After a malfunction event, the EPA would We are also proposing to revise the certain point, the transgression of determine an appropriate response General Provisions table (Table 4) to add regulatory limits caused by based on, among other things, the good an entry for 40 CFR 63.6(e)(1)(ii) and ‘uncontrollable acts of third parties,’ faith efforts of the source to minimize include a ‘‘no’’ in column 3. Section such as strikes, sabotage, operator emissions during malfunction periods, 63.6(e)(1)(ii) imposes requirements that intoxication or insanity, and a variety of including preventative and corrective are not necessary with the elimination other eventualities, must be a matter for actions, as well as root cause analyses of the SSM exemption or are redundant the administrative exercise of case-by- to ascertain and rectify excess with the general duty requirement being case enforcement discretion, not for emissions. The EPA would also added at 40 CFR 63.4700(b). specification in advance by consider whether the source’s failure to regulation.’’). In addition, emissions comply with the CAA section 112(d) We are also proposing to revise the during a malfunction event can be standard was, in fact, sudden, General Provisions table (Table 4) to add significantly higher than emissions at infrequent, not reasonably preventable an entry for 40 CFR 63.6(e)(1)(iii) and any other time of source operation. For and was not instead caused in part by include a ‘‘yes’’ in column 3. example, if an air pollution control poor maintenance or careless operation. Finally, we are proposing to revise the device with 99-percent removal goes off- 40 CFR 63.2 (definition of malfunction). General Provisions table (Table 4) to add line as a result of a malfunction (as If the EPA determines in a particular an entry for 40 CFR 63.6(e)(2) and might happen if, for example, the bags case that an enforcement action against include a ‘‘no’’ in column 3. This in a baghouse catch fire) and the a source for violation of an emission paragraph is reserved and is not emission unit is a steady state type unit standard is warranted, the source can applicable to 40 CFR part 63, subpart that would take days to shut down, the raise any and all defenses in that QQQQ. enforcement action and the federal source would go from 99-percent b. SSM Plan control to zero control until the control district court will determine what, if device was repaired. The source’s any, relief is appropriate. The same is We are proposing to revise the emissions during the malfunction true for citizen enforcement actions. General Provisions table (Table 4) to add would be 100 times higher than during Similarly, the presiding officer in an an entry for 40 CFR 63.6(e)(3) and normal operations. As such, the administrative proceeding can consider include a ‘‘no’’ in column 3. Generally, emissions over a 4-day malfunction any defense raised and determine these paragraphs require development period would exceed the annual whether administrative penalties are of an SSM plan and specify SSM emissions of the source during normal appropriate. recordkeeping and reporting operations. As this example illustrates, In summary, the EPA interpretation of requirements related to the SSM plan. accounting for malfunctions could lead the CAA and, in particular, CAA section As noted, the EPA is proposing to to standards that are not reflective of 112 is reasonable and encourages remove the SSM exemptions. Therefore, (and significantly less stringent than) practices that will avoid malfunctions. affected units will be subject to an levels that are achieved by a well- Administrative and judicial procedures emission standard during such events. performing non-malfunctioning source. for addressing exceedances of the The applicability of a standard during It is reasonable to interpret CAA section standards fully recognize that violations such events will ensure that sources 112 to avoid such a result. The EPA’s may occur despite good faith efforts to have ample incentive to plan for and approach to malfunctions is consistent comply and can accommodate those achieve compliance, and, thus, the SSM with CAA section 112 and is a situations. U.S. Sugar Corporation v. plan requirements are no longer reasonable interpretation of the statute. EPA, 830 F.3d 579, 606–610 (2016). necessary.

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c. Compliance With Standards 63.8(c)(1)(i) through (iii) and including and malfunctions. To replace the We are proposing to revise the ‘‘no’’ in column 3 for paragraphs (i) and General Provisions reporting General Provisions table (Table 4) (iii). The cross-references to the general requirement for malfunctions, the EPA entries for 40 CFR 63.6(f) and (h) by re- duty and SSM plan requirements in is proposing to replace the SSM report designating these sections as 40 CFR those subparagraphs are not necessary under 40 CFR 63.10(d)(5) with the considering other requirements of 40 63.6(f)(1) and (h)(1) and including a existing reporting requirements under CFR 63.8 that require good air pollution ‘‘no’’ in column 3. The current language 40 CFR 63.4720(a). The replacement control practices (40 CFR 63.8(c)(1)) and in 40 CFR 63.6(f)(1) excludes sources language differs from the General that set out the requirements of a QC from non-opacity standards during Provisions requirement in that it program for monitoring equipment (40 periods of SSM, while the current eliminates periodic SSM reports as a CFR 63.8(d)). language in 40 CFR 63.6(h)(1) excludes stand-alone report. We are proposing sources from opacity standards during f. Recordkeeping language that requires sources that fail periods of SSM. As discussed above, the to meet an applicable standard at any We are proposing to revise the time to report the information Court in Sierra Club vacated the General Provisions table (Table 4) by exemptions contained in this provision concerning such events in the adding an entry for 40 CFR 63.10(b)(2)(i) semiannual report to be required under and held that the CAA requires that and including a ‘‘no’’ in column 3. some CAA section 112 standards apply the proposed rule. We are proposing Section 63.10(b)(2)(i) describes the that the report must contain the number, continuously. Consistent with Sierra recordkeeping requirements during Club, the EPA is proposing to revise date, time, duration, and the cause of startup and shutdown. These recording such events (including unknown cause, standards in this rule to apply at all provisions are no longer necessary times. if applicable), a list of the affected because the EPA is proposing that source or equipment, an estimate of the d. Performance Testing recordkeeping and reporting applicable quantity of each regulated pollutant to normal operations will apply to emitted over any emission limit, and a We are proposing to revise the startup and shutdown. Special General Provisions table (Table 4) entry description of the method used to provisions applicable to startup and estimate the emissions. for 40 CFR 63.7(e) by re-designating it shutdown, such as a startup and Examples of such methods would as 40 CFR 63.7(e)(1) and including a shutdown plan, have been removed include mass balance calculations, ‘‘yes’’ in column 3. Section 63.7(e)(1) from the rule (with exceptions measurements when available, or describes performance testing discussed below), thereby reducing the engineering judgment based on known requirements. Section 63.4764(a) of the need for additional recordkeeping for process parameters. The EPA is current rule specifies that performance startup and shutdown periods. testing must be conducted when the We are also proposing to revise the proposing this requirement to ensure emission capture system and add-on General Provisions table (Table 4) by that there is adequate information to control device are operating at adding an entry for 40 CFR determine compliance, to allow the EPA representative conditions. You must 63.10(b)(2)(iv)–(v) and including a ‘‘no’’ to determine the severity of the failure document why the conditions represent in column 3. When applicable, the to meet an applicable standard, and to normal operation. As in 40 CFR provision requires sources to record provide data that may document how 63.7(e)(1), performance tests conducted actions taken during SSM events when the source met the general duty to under this subpart should not be actions were inconsistent with their minimize emissions during a failure to conducted during malfunctions because SSM plan. The requirement is no longer meet an applicable standard. conditions during malfunctions are appropriate because SSM plans will no We will no longer require owners or often not representative of normal longer be required. operators to determine whether actions operating conditions. The EPA is We are also proposing to revise the taken to correct a malfunction are proposing to add language that requires General Provisions table (Table 4) by consistent with an SSM plan, because the owner or operator to record the adding an entry for 40 CFR 63.10(c)(15) plans would no longer be required. The process information that is necessary to and including a ‘‘no’’ in column 3. The proposed amendments, therefore, document operating conditions during EPA is proposing that 40 CFR eliminate the cross-reference to 40 CFR the test and include in such record an 63.10(c)(15) no longer applies. When 63.10(d)(5)(i) that contains the explanation to support that such applicable, the provision allows an description of the previously required conditions represent normal operations. owner or operator to use the affected SSM report format and submittal Section 63.7(e) requires that the owner source’s SSM plan or records kept to schedule from this section. These or operator make available to the satisfy the recordkeeping requirements specifications are no longer necessary Administrator such records ‘‘as may be of the SSM plan, specified in 40 CFR because the events will be reported in necessary to determine the condition of 63.6(e), to also satisfy the requirements otherwise required reports with similar the performance test’’ available to the of 40 CFR 63.10(c)(10) through (12). The format and submittal requirements. Administrator upon request, but does EPA is proposing to eliminate this The proposed amendments also not specifically require the information requirement because SSM plans would eliminate the cross-reference to 40 CFR to be recorded. The regulatory text the no longer be required, and, therefore, 40 63.10(d)(5)(ii). Section 63.10(d)(5)(ii) EPA is proposing to add to this CFR 63.10(c)(15) no longer serves any describes an immediate report for provision builds on that requirement useful purpose for affected units. startups, shutdown, and malfunctions and makes explicit the requirement to when a source failed to meet an record the information. g. Reporting applicable standard, but did not follow We are proposing to revise the the SSM plan. We will no longer require e. Monitoring General Provisions table (Table 4) entry owners and operators to report when We are proposing to revise the for 40 CFR 63.10(d)(5) by changing the actions taken during a startup, General Provisions table (Table 4) by re- ‘‘yes’’ in column 3 to a ‘‘no.’’ Section shutdown, or malfunction were not designating 40 CFR 63.8(c) as 40 CFR 63.10(d)(5) describes the reporting consistent with an SSM plan, because 63.8(c)(1), adding entries for 40 CFR requirements for startups, shutdowns, plans would no longer be required.

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2. Alternative Compliance Calculations option would be required to conduct an which include performance test reports, An alternative monitoring request was initial performance test to demonstrate semiannual reports, and notifications, submitted to the EPA which proposed compliance. As explained in the through the EPA’s Central Data technical supporting memoranda Exchange (CDX) using the Compliance utilizing a HAP emission factor to 18 demonstrate compliance with the accompanying this proposal, and Emissions Data Reporting Interface emission rate without add-on controls performance testing is needed to (CEDRI). Specifically, we are proposing compliance option instead of the develop process specific emission that owners and operators create current emission factor in the rule factors to demonstrate compliance for performance test reports using the which assumes that all HAP in the the new alternative equation. In Electronic Reporting Tool (ERT) and addition, requiring initial performance coating is emitted to the atmosphere. As submit the performance test reports, as testing under the proposed option discussed below, we are proposing to well as notifications and semiannual would be equitable with respect to include this compliance calculation reports through CEDRI. The EPA sources meeting the currently approach in this rulemaking to allow believes that the electronic submittal of promulgated compliance demonstration any facility utilizing a similar process to the reports addressed in this proposed requirements, as facilities demonstrating use the approach without requiring the rulemaking will increase the usefulness compliance through the currently submittal of an alternative monitoring of the data contained in those reports, promulgated emission rate with add-on request to the EPA under the provisions is in keeping with current trends in data controls option (40 CFR 63.4691(c)) are of 40 CFR 63.8(f). The proposed availability, will further assist in the already required to conduct a similar amendment adds compliance flexibility, protection of public health and the initial air emissions performance test to environment, and will ultimately result but does not alter the emission standard. demonstrate compliance. This The coating process uses a liquid in less burden on the regulated amendment is expected to impact one catalyst to initiate chemical and community. Under current facility, with a one-time cost of $22,000 requirements, paper reports are often physical change of the coating materials for the initial performance test. stored in filing cabinets or boxes, which by the formation of a cross-linked Additionally, the EPA is requesting polymer, and involves spraying wood comment on whether a periodic make the reports more difficult to obtain panels with a two-part mixture emissions testing provision should be and use for data analysis and sharing. consisting of a HAP-containing resin added to the rule for sources using add- Electronic storage of such reports makes and a non-HAP catalyst. The catalyst on controls. Currently, there are four data more accessible for review, polymerizes the resin to form the existing facilities that have operating analysis, and sharing. Electronic applied coating within a matter of permits indicating the use of add-on reporting also eliminates paper-based, seconds. The result is that the HAP in control devices for wood building manual processes, thereby saving time the resin is nearly completely product surface coating operations. and resources, simplifying data entry, polymerized and, as a result, the air Only one of those facilities is not eliminating redundancies, minimizing emissions of HAP are a very small conducting a performance test on at data reporting errors and providing data fraction of the total HAP applied. least a 5-year frequency due to state quickly and accurately to affected We are proposing to add a new requirements. The repeat performance facilities, air agencies, the EPA, and the equation to the existing compliance testing provision on which the Agency public. demonstration calculations to more is requesting comment would impact In 2011, in response to Executive adequately represent the HAP amounts this facility if the provisions were Order 13563, the EPA developed a emitted by this type of surface coating finalized, with an estimated cost of plan 21 to periodically review its or any similar coating. The existing $22,000 for each repeat performance regulations to determine if they should equation assumes that all of the HAP in test. The periodic testing provision on be modified, streamlined, expanded, or the coating is emitted. Facilities wishing which the Agency is requesting repealed to make regulations more to apply this emission calculation comment would also require facilities effective and less burdensome. The plan method could submit to the EPA an utilizing the proposed alternative includes replacing outdated paper alternative monitoring request, however, compliance demonstration equations reporting with electronic reporting. In this would add a compliance burden. To (40 CFR 63.4751(i)) of the emission rate keeping with this plan and the White reduce the burden, we are adding without add-on controls option to House’s Digital Government Strategy,22 alternative compliance demonstration conduct a periodic air emissions in 2013 the EPA issued an agency-wide equations, which do not assume 100 performance test to develop process policy specifying that new regulations percent of the HAP in the coating is specific emissions factors to will require reports to be electronic to emitted. The proposed demonstration demonstrate continuing compliance. the maximum extent possible.23 By equations would use a HAP emission The periodic testing provision which requiring electronic submission of factor based on initial stack testing of the EPA is requesting comment would specified reports in this proposed rule, the proposed coating process. This require one performance test at least approach quantifies emissions in a way every 5 years. The inclusion of a 21 Improving Our Regulations: Final Plan for that is representative of the actual periodic repeat testing requirement Periodic Retrospective Reviews of Existing emissions from this coating operation. would help demonstrate that emissions Regulations, August 2011. Available at: https:// www.regulations.gov, Document ID No. EPA–HQ– 2. Emissions Testing control equipment is continuing to operate as designed and that the facility OA–2011–0156–0154. The EPA is proposing amendments to 22 Digital Government: Building a 21st Century remains in compliance with the Platform to Better Serve the American People, May the Surface Coating of Wood Building standard. 2012. Available at: https://www.whitehouse.gov/ Products NESHAP that would provide sites/default/files/omb/egov/digital-government/ an additional compliance demonstration 3. Electronic Reporting digital-government-strategy.pdf equation. Facilities using the proposed The EPA is proposing that owners and 23 E-Reporting Policy Statement for EPA Regulations, September 2013. Available at: https:// alternative compliance demonstration operators of facilities subject to 40 CFR www.epa.gov/sites/production/files/2016-03/ equation (40 CFR 63.4751(i)) of the part 63, subpart QQQQ submit documents/epa-ereporting-policy-statement-2013- emission rate without add-on controls electronic copies of compliance reports, 09-30.pdf.

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the EPA is taking steps to implement Additionally, by making the records, reporting forms to submit to the this policy. data, and reports addressed in this delegated authorities, and, thus, The EPA website that stores the proposed rulemaking readily available, minimize the time spent reporting to submitted electronic data, WebFIRE, is the EPA, the regulated community, and multiple agencies. Additionally, easily accessible to everyone and the public will benefit when the EPA maintenance and storage costs provides a user-friendly interface that conducts its CAA-required technology associated with retaining paper records any stakeholder can access. By making and risk-based reviews. As a result of could likewise be minimized by data readily available, electronic having performance test reports and air replacing those records with electronic reporting increases the amount of data emission data readily accessible, our records of electronically submitted data that can be used for many purposes. ability to carry out comprehensive and reports. One example is the development of reviews will be increased and achieved Delegated authorities could benefit emissions factors. An emissions factor is within a shorter period of time. These from more streamlined and automated a representative value that attempts to data will provide useful information on review of the electronically submitted relate the quantity of a pollutant control efficiencies being achieved and data. For example, because performance released to the atmosphere with an maintained in practice within a source test data would be readily-available in a activity associated with the release of category and across source categories for standard electronic format, delegated that pollutant (e.g., kilograms of regulated sources and pollutants. These authorities would be able to review particulate emitted per megagram of reports can also be used to inform the reports and data electronically rather coal burned). Such factors facilitate the technology-review process by providing than having to conduct a review of the estimation of emissions from various information on improvements to add-on reports and data manually. Having sources of air pollution and are an control technology and new control reports and associated data in electronic important tool in developing emissions technology. format facilitates review through the use inventories, which in turn are the basis Under an electronic reporting system, of software ‘‘search’’ options, as well as for numerous efforts, including trends the EPA’s Office of Air Quality Planning the downloading and analyzing of data analysis, regional- and local-scale air and Standards (OAQPS) would have air in spreadsheet format. Additionally, quality modeling, regulatory impact emissions and performance test data in delegated authorities would benefit assessments, and human exposure hand; OAQPS would not have to collect from the reported data being accessible modeling. Emissions factors are also these data from the EPA Regional offices to them through the EPA’s electronic or from delegated authorities or industry widely used in regulatory applicability reporting system wherever and sources in cases where these reports are determinations and in permitting whenever they want or need access, as not submitted to the EPA Regional decisions. long as they have access to the Internet. offices. Thus, we anticipate fewer or less The ability to access and review reports The EPA has received feedback from substantial information collection electronically assists delegated stakeholders asserting that many of the requests (ICRs) may be needed in authorities in determining compliance EPA’s emissions factors are outdated or conjunction with prospective CAA- with applicable regulations more not representative of a particular required technology and risk-based quickly and accurately, potentially industry emission source. While the reviews. We expect this to result in a allowing a faster response to violations, EPA believes that the emissions factors decrease in time spent by industry to which could minimize harmful air are suitable for their intended purpose, respond to data collection requests. We emissions. This change benefits both we recognize that the quality of also expect the ICRs to contain less delegated authorities and the public. emissions factors varies based on the extensive stack testing provisions, as we extent and quality of underlying data. will already have stack test data The proposed electronic reporting of We also recognize that emissions electronically. Reduced testing data is consistent with electronic data profiles on different pieces of requirements would be a cost savings to trends (e.g., electronic banking and equipment can change over time due to industry. The EPA should also be able income tax filing). Electronic reporting a number of factors (fuel changes, to conduct these required reviews more of environmental data is already equipment improvements, industry quickly, as OAQPS will not have to common practice in many media offices work practices), and it is important for include the ICR collection time in the at the EPA. The changes being proposed emissions factors to be updated to keep process or spend time collecting reports in this rulemaking are needed to up with these changes. The EPA is from the EPA Regional offices. While continue the EPA’s transition to currently pursuing emissions factor the regulated community may benefit electronic reporting. development improvements that from a reduced burden of ICRs, the As noted above, we are proposing that include procedures to incorporate the general public benefits from the 40 CFR part 63, subpart QQQQ source test data that we are proposing be Agency’s ability to provide these performance test reports be submitted submitted electronically. By requiring required reviews more quickly, resulting through the EPA’s ERT. With the the electronic submission of the reports in increased public health and exception of the method proposed in identified in this proposed action, the environmental protection. conjunction with this rulemaking, all EPA would be able to access and use the Electronic reporting minimizes test methods listed under 40 CFR part submitted data to update emissions submission of unnecessary or 63, subpart QQQQ are currently factors more quickly and efficiently, duplicative reports in cases where supported by the ERT. The proposal creating factors that are characteristic of facilities report to multiple government would require that performance test what is currently representative of the agencies and the agencies opt to rely on results collected using test methods that relevant industry sector. Likewise, an the EPA’s electronic reporting system to are not supported by the ERT as listed increase in the number of test reports view report submissions. Where on the EPA’s ERT Web site at the time used to develop the emissions factors delegated authorities continue to require of the test be submitted to the will provide more confidence that the a paper copy of these reports and will Administrator at the appropriate factor is of higher quality and accept a hard copy of the electronic address listed in 40 CFR 63.13, unless representative of the whole industry report, facilities will have the option to the Administrator agrees to or specifies sector. print paper copies of the electronic an alternate reporting method.

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In addition to electronically reporting online. However, if the CDX or CEDRI on December 8, 1997 (62 FR 64532) as the results of performance tests, we are is down during the week a report is due, Method 207, but was never proposing the requirement to we realize that this could greatly impact promulgated. Method 326 does not electronically submit notifications and the ability to submit a required report significantly modify the sampling and the semiannual compliance report on time. We will notify facilities about analytical techniques of the previously required in 40 CFR 63.4720. The known outages as far in advance as proposed method, but includes proposal would require the owner or possible by CHIEF Listserv notice, additional QC procedures and operator use the appropriate posting on the CEDRI Web site and associated performance criteria to spreadsheet template in CEDRI for the posting on the CDX Web site so that ensure the overall quality of the subpart. If the reporting template facilities can plan accordingly and still measurement. specific to the subpart is not available meet the reporting deadline. However, if Method 326 is based on the EPA at the time that the report is due, the a planned or unplanned outage occurs Method 5 sampling train employing a owner or operator would submit the and a facility believes that it will affect derivatizing reagent [1-(2-pyridyl) report to the Administrator at the or it has affected compliance with an piperazine in toluene] in the impingers appropriate addresses listed in the electronic reporting requirement, we to immediately stabilize the isocyanate General Provisions. The owner or have provided a process to assert such compounds upon collection. Collected operator would begin submitting reports a claim. samples are analyzed using high electronically with the next report that In 40 CFR 63.4720(d)(4), we address performance liquid chromatography and is due, once the electronic template has the situation where an extension may be an appropriate detector under laboratory been available for at least 1 year. The warranted due to a force majeure event, conditions sufficient to separate and EPA is currently working to develop the which is defined as an event that will quantify the isocyanate compounds. templates for 40 CFR part 63, subpart be or has been caused by circumstances The sampling and analytical QQQQ. We are specifically taking beyond the control of the affected techniques were validated at three comment on the content, layout, and facility, its contractors, or any entity sources according to EPA Method 301 overall design of the spreadsheet controlled by the affected facility that (40 CFR 63, Appendix A) and the report templates, which are presented as an prevents compliance with the of this validation, titled Laboratory Excel spreadsheet in the docket titled requirement to submit a report Development and Field Evaluation of a Electronic Reporting for Subpart QQQQ electronically as required by this rule. Generic Method for Sampling and Semiannual Reports.24 We plan to Examples of such events are acts of Analysis of Isocyanates, can be found in finalize a required reporting format with nature, acts of war or terrorism, or the docket. Under the proposed rule, the final rule. equipment failure or safety hazards this validated technique would be used As stated in 40 CFR 63.4720(d)(2), the beyond the control of the facility. If to reliably collect and analyze gaseous proposal also requires that notifications such an event occurs or is still occurring isocyanate emissions from Surface be reported electronically though or if there are still linger effects of the Coatings of Wood Building Products for CEDRI. Currently, there are no templates event in the 5 business days prior to a methylene diphenyl diisocyanate (MDI), for notifications in CEDRI for this submission deadline, we have provided methyl isocyanate (MI), hex methylene subpart. Therefore, the owner or a process to assert a claim of force 1,6 diisocyanate (HDI), and 2,4 toluene operator must submit these notifications majeure. diisocyanate (TDI). This method will in portable document format (PDF). We are providing these potential also provide a tool for state and local Additionally, we have identified two extensions to protect facilities from governments, industry, and the EPA to broad circumstances in which electronic noncompliance in cases when a facility reliably measure emissions of MDI, MI, reporting extensions may be provided. cannot successfully submit a report by HDI, and/or TDI from other types of In both circumstances, the decision to the reporting deadline for reasons stationary sources, such as pressed accept your claim of needing additional outside of its control as described above. board, flexible foam, and spray booths. time to report is within the discretion of We are not providing an extension for the Administrator, and reporting should other instances. Facility representatives 5. Incorporation by Reference Under 1 occur as soon as possible. should register for CEDRI far in advance CFR Part 51 In 40 CFR 63.4720(d)(3), we address of the initial compliance date in order The EPA is proposing regulatory text the situation where an extension may be to make sure that they can complete the that includes IBR. In accordance with warranted due to outages of the EPA’s identity proofing process prior to the requirements of 1 CFR 51.5, the EPA is CDX or CEDRI which preclude you from initial compliance date. Additionally, proposing to incorporate by reference accessing the system and submitting we recommend developing reports the following voluntary consensus required reports. If either the CDX or early, in case any questions arise during standards (VCS) described in the CEDRI is unavailable at any time the reporting process. amendments to 40 CFR 63.14: beginning 5 business days prior to the 4. New EPA Test Method 326 • ANSI A135.4–2012, Basic Hardboard, date that the submission is due, and the We are proposing EPA Method 326 to IBR approved for 40 CFR 63.4781. unavailability prevents the submission • ASTM D1475–90, Standard Test Method address technical issues related to of a report by the required date, the for Density of Paint, Varnish Lacquer, and VOHAP content measured in certain facility may assert a claim of EPA Related Products, IBR approved for 40 CFR surface coatings containing isocyanates. system outage. We consider 5 business 63.4741(b) and (c) and 63.4751(c). Because there is currently no EPA test • ASTM D1963–85 (1996), Standard Test days prior to the reporting deadline to method for isocyanate emissions, as part Method for Specific Gravity of Drying Oils, be an appropriate timeframe because if of this action, we are proposing specific Varnishes, Resins, and Related Materials at the system is down prior to this time, ° isocyanate compound sample collection 25/25 C, IBR approved for 40 CFR 63.4741(a) facilities will have 1 week to complete and analytical requirements as Method and 63.4761(j). reporting once the system is back • ASTM D2111–95 (2000), Standard Test 326 of 40 CFR part 63, Appendix A. Methods for Specific Gravity of Halogenated 24 Electronic Reporting for Subpart QQQQ Method 326 is based on ‘‘A Method for Organic Solvents and Their Admixtures, IBR Semiannual Reports; see Docket ID No. EPA–HQ– Measuring Isocyanates in Stationary approved for 40 CFR 63.4741(a) and OAR–2016–0678. Source Emissions’’ which was proposed 63.4761(j).

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• ASTM D2369–01, Test Method for than 180 days after the effective date of recognizes the confusion that multiple Volatile Content of Coatings, IBR approved the final rule. The EPA is also proposing different compliance dates for for 40 CFR 63.4741(a) and 63.4761(j). individual requirements would create • that affected sources that commence ASTM D2697–86 (Reapproved 1998), construction or reconstruction after May and the additional burden such an Standard Test Method for Volume assortment of dates would impose. From Nonvolatile Matter in Clear or Pigmented 16, 2018 must comply with all Coatings, IBR approved for 40 CFR 63.4741(a) requirements of the subpart, including our assessment of the timeframe needed and (b) and 63.4761(j). the amendments being proposed, no for compliance with the entirety of the • ASTM D4840–99, Standard Guide for later than the effective date of the final revised requirements, the EPA considers Sampling Chain-of-Custody Procedures, IBR rule or upon startup, whichever is later. a period of 180 days to be the most approved for Method 326 in appendix A to All affected existing facilities would expeditious compliance period part 63. practicable, and, thus, is proposing that • have to continue to meet the current ASTM D6093–97 (Reapproved 2003), requirements of 40 CFR part 63, subpart existing affected sources be in Standard Test Method for Percent Volume QQQQ until the applicable compliance compliance with all of this regulation’s Nonvolatile Matter in Clear or Pigmented revised requirements within 180 days of Coatings Using a Helium Gas Pycnometer, date of the amended rule. The final IBR approved for 40 CFR 63.4741(a) and (b) action is not expected to be a ‘‘major the regulation’s effective date. We solicit and 63.4761(j). rule’’ as defined by 5 U.S.C. 804(2), so comment on this proposed compliance • ASTM D6348–03 (Reapproved 2010), the effective date of the final rule will period, and we specifically request Standard Test Method for Determination of be the promulgation date as specified in submission of information from sources Gaseous Compounds by Extractive Direct CAA section 112(d)(10). For existing in this source category regarding Interface Fourier Transform Infrared (FTIR) sources, we are proposing two changes specific actions that would need to be Spectroscopy, including Annexes A1 through that would impact ongoing compliance undertaken to comply with the A8, Approved October 1, 2010, IBR approved proposed amended requirements and for 40 CFR 63.4751(i) and 63.4766(b). requirements for 40 CFR part 63, subpart QQQQ. As discussed elsewhere the time needed to make the While the ASTM methods D2697–86 in this preamble, we are proposing to adjustments for compliance with any of and D6093–97 were incorporated by add a requirement that notifications, the revised requirements. We note that reference when 40 CFR part 63, subpart performance test results, and the information provided may result in QQQQ was originally promulgated (68 semiannual reports using the new changes to the proposed compliance FR 31760), the methods are being cited template be submitted electronically. date. in additional paragraphs in the We are also proposing to change the proposed rule, requiring a revision to V. Summary of Cost, Environmental, requirements for SSM by removing the and Economic Impacts their IBR. The ANSI method and the exemption from the requirements to other ASTM methods are being meet the standard during SSM periods A. What are the affected sources? incorporated by reference for 40 CFR and by removing the requirement to There are currently 55 wood building part 63, subpart QQQQ for the first time develop and implement an SSM plan. product manufacturing facilities under this rulemaking. Additionally, we are proposing to add a operating in the United States that 6. Technical and Editorial Changes new compliance demonstration conduct surface coating operations and equation that adds flexibility to meeting The following are additional proposed are subject to the Surface Coating of the standard, but this change does not changes that address technical and Wood Building Products NESHAP. The affect ongoing compliance. Our editorial corrections: 40 CFR part 63, subpart QQQQ affected • Revised the monitoring experience with similar industries that source is the collection of all the items requirements section in 40 CFR 63.4764 are required to convert reporting listed in 40 CFR 63.4682(b)(1) through to clarify ongoing compliance mechanisms, install necessary (4) that are used for surface coating of provisions to address startup and hardware, install necessary software, wood building products. A new affected shutdown periods when certain become familiar with the process of source is a completely new wood parameters cannot be met; submitting performance test results building products surface coating source • Revised the recordkeeping electronically through the EPA’s CEDRI, where previously no wood building requirements section in 40 CFR 63.4730 test these new electronic submission products surface coating source had to include the requirement to record capabilities, reliably employ electronic existed. reporting, and convert logistics of information on failures to meet the B. What are the air quality impacts? applicable standard; reporting processes to different time- • Revised the terminology in the reporting parameters, shows that a time At the current level of control, delegation of authority section in 40 period of a minimum of 90 days, and emissions of total HAP are CFR 63.4780 to match the definitions in more typically 180 days, is generally approximately 260 tpy. Compared to 40 CFR 63.90; necessary to successfully complete these pre-MACT levels, this represents a • Revised the references to several changes. Our experience with similar significant reduction of HAP for the test method appendices; and industries further shows that this sort of category. Prior to the development of • Revised the General Provisions regulated facility generally requires a the Surface Coating of Wood Building applicability table (Table 4 to 40 CFR time period of 180 days to read and Products NESHAP, the EPA estimated part 63, subpart QQQQ) to align with understand the amended rule HAP emissions to be 14,311 tons 25 those sections of the General Provisions requirements; evaluate their operations annually. The proposed amendments that have been amended or reserved to ensure that they can meet the will require all 55 major sources with over time. standards during periods of startup and equipment subject to the Wood Building shutdown as defined in the rule and Products Coating NESHAP to operate E. What compliance dates are we make any necessary adjustments; adjust proposing? parameter monitoring and recording 25 National Emission Standards for Hazardous systems to accommodate revisions; and Air Pollutants (NESHAP) for the Wood Building The EPA is proposing that existing Products (Surface Coating) Industry—Background affected sources must comply with the update their operations to reflect the Information for Proposed Standards; EPA–453/R– amendments in this rulemaking no later revised requirements. The EPA 00–003; May 2001.

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without the SSM exemption. We were with the proposed rule requirements. VII. Submitting Data Corrections unable to quantify the specific For further information, see the The site-specific emissions profiles emissions reductions associated with memorandum titled Cost Impacts of the used in the source category risk and eliminating the SSM exemption. Subpart QQQQ Residual Risk and demographic analyses and instructions However, eliminating the SSM Technology Review, in the docket for are available for download on the RTR exemption will reduce emissions by this action. website at http://www3.epa.gov/ttn/atw/ requiring facilities to meet the D. What are the economic impacts? rrisk/rtrpg.html. The data files include applicable standard during SSM Economic impact analyses focus on detailed information for each HAP periods. emissions release point for the facilities Indirect or secondary air emissions changes in market prices and output levels. If changes in market prices and in the source category. impacts are impacts that would result If you believe that the data are not output levels in the primary markets are from the increased electricity usage representative or are inaccurate, please significant enough, impacts on other associated with the operation of control identify the data in question, provide markets may also be examined. Both the devices (i.e., increased secondary your reason for concern, and provide emissions of criteria pollutants from magnitude of costs needed to comply with a proposed rule and the any ‘‘improved’’ data that you have, if power plants). Energy impacts consist of available. When you submit data, we the electricity and steam needed to distribution of these costs among request that you provide documentation operate control devices and other affected facilities can have a role in of the basis for the revised values to equipment that would be required determining how the market will change support your suggested changes. To under this proposed rule. The EPA in response to a proposed rule. submit comments on the data expects no secondary air emissions For the one facility expected to downloaded from the RTR website, impacts or energy impacts from this conduct an initial performance test and complete the following steps: rulemaking. become familiar with the proposed rule For further information, see the requirements, the costs associated with 1. Within this downloaded file, enter memorandum titled Cost Impacts of the 40 CFR part 63, subpart QQQQ’s suggested revisions to the data fields Subpart QQQQ Residual Risk and proposed requirements are less than appropriate for that information. Technology Review, in the docket for 0.001 percent of annual sales revenues. 2. Fill in the commenter information fields for each suggested revision (i.e., commenter this action. For the remaining 54 facilities, the costs name, commenter organization, commenter associated with becoming familiar with C. What are the cost impacts? email address, commenter phone number, the proposed rule requirements are also and revision comments). We estimate that each facility in the less than 0.001 percent of annual sales 3. Gather documentation for any suggested source category will experience costs as revenues. These costs are not expected emissions revisions (e.g., performance test a result of these proposed amendments to result in a significant market impact, reports, material balance calculations, etc.). that are estimated as part of the 4. Send the entire downloaded file with regardless of whether they are passed on ® reporting and recordkeeping costs. Each to the purchaser or absorbed by the suggested revisions in Microsoft Access facility will experience costs to read and firms. format and all accompanying documentation understand the rule amendments. Costs to Docket ID No. EPA–HQ–OAR–2016–0678 associated with the elimination of the E. What are the benefits? (through the method described in the SSM exemption were estimated as part ADDRESSES section of this preamble). The EPA did not propose changes to 5. If you are providing comments on a of the reporting and recordkeeping costs the emission limit requirements and single facility or multiple facilities, you need and include time for re-evaluating estimates the proposed changes to SSM, only submit one file for all facilities. The file previously developed SSM record recordkeeping, reporting, and should contain all suggested changes for all systems. Costs associated with the monitoring are not economically sources at that facility (or facilities). We requirement to electronically submit significant. Because these proposed request that all data revision comments be ® notifications and semi-annual amendments are not considered submitted in the form of updated Microsoft Excel files that are generated by the compliance reports using CEDRI were economically significant, as defined by ® estimated as part of the reporting and Executive Order 12866 and because no Microsoft Access file. These files are recordkeeping costs and include time provided on the RTR website at http:// emission reductions were estimated, we www3.epa.gov/ttn/atw/rrisk/rtrpg.html. for becoming familiar with CEDRI and did not estimate any benefits from the reporting template for semi-annual reducing emissions. VIII. Statutory and Executive Order compliance reports. The recordkeeping Reviews VI. Request for Comments and reporting costs are presented in Additional information about these section V.III.C of this preamble. We solicit comments on all aspects of statutes and Executive Orders can be The EPA estimates that one facility this proposed action. In addition to found at http://www2.epa.gov/laws- will be impacted from this proposed general comments on this proposed regulations/laws-and-executive-orders. regulatory action. This facility will action, we are also interested in conduct an initial performance test to additional data that may improve the A. Executive Order 12866: Regulatory demonstrate compliance with the risk assessments and other analyses. We Planning and Review and Executive proposed alternative compliance are specifically interested in receiving Order 13563: Improving Regulation and equation, as proposed in their request any improvements to the data used in Regulatory Review for an alternative monitoring method. the site-specific emissions profiles used This action is not a significant This initial performance test has a one- for risk modeling. Such data should regulatory action and was, therefore, not time cost of $22,000. The total estimated include supporting documentation in submitted to the OMB for review. labor costs for the rule are summarized sufficient detail to allow in the Supporting Statement for the ICR characterization of the quality and B. Executive Order 13771: Reducing in the docket for this action. The representativeness of the data or Regulation and Controlling Regulatory estimated labor cost includes an information. Section VII of this Costs estimated labor cost of $36,618 for all 55 preamble provides more information on This action is not expected to be an affected facilities to become familiar submitting data. Executive Order 13771 regulatory action

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because this action is not significant the beginning of this rule. You may also G. Executive Order 13175: Consultation under Executive Order 12866. send your ICR-related comments to and Coordination With Indian Tribal Governments C. Paperwork Reduction Act (PRA) OMB’s Office of Information and Regulatory Affairs via email to OIRA_ This action does not have tribal The information collection activities [email protected], Attention: implications as specified in Executive in this proposed rule have been Desk Officer for the EPA. Since OMB is Order 13175. It will not have substantial submitted for approval to the OMB required to make a decision concerning direct effects on tribal governments, on under the PRA. The ICR document that the ICR between 30 and 60 days after the relationship between the federal the EPA prepared has been assigned receipt, OMB must receive comments no government and Indian tribes, or on the EPA ICR number 2034.07. You can find later than June 15, 2018. The EPA will distribution of power and a copy of the ICR in the docket for this responsibilities between the federal rule (Docket ID No. EPA–HQ–OAR– respond to any ICR-related comments in the final rule. government and Indian tribes, as 2016–0678), and it is briefly specified in Executive Order 13175. summarized here. D. Regulatory Flexibility Act (RFA) This proposed rule imposes We are proposing changes to the requirements on owners and operators I certify that this action will not have paperwork requirements for the Surface of wood building product surface Coating of Wood Building Products a significant economic impact on a coating facilities and not tribal NESHAP in the form of eliminating the substantial number of small entities governments. The EPA does not know of SSM reporting and SSM plan under the RFA. In making this any wood building product surface requirements, and requiring electronic determination, the impact of concern is coating facilities owned or operated by submittal of all compliance reports any significant adverse economic Indian tribal governments. However, if (including performance test reports), impact on small entities. An agency may there are any, the effect of this rule on and some notifications. certify that a rule will not have a communities of tribal governments Respondents/affected entities: significant economic impact on a would not be unique or Respondents include wood building substantial number of small entities if disproportionate to the effect on other product manufacturing facilities with the rule relieves regulatory burden, has communities. Thus, Executive Order surface coating operations subject to the no net burden or otherwise has a 13175 does not apply to this action. Surface Coating of Wood Building positive economic effect on the small Products NESHAP. H. Executive Order 13045: Protection of Respondent’s obligation to respond: entities subject to the rule. We Children From Environmental Health Mandatory (authorized by section 114 of conducted an Economic Impact analysis Risks and Safety Risks which is available in the docket for this the CAA). This action is not subject to Executive proposal, EPA–HQ–OAR–2016–0678. Estimated number of respondents: 55. Order 13045 because it is not Frequency of response: The frequency For all the facilities affected by the economically significant as defined in of responses varies depending on the proposal, including the small Executive Order 12866, and because the burden item. Responses include initial businesses, the costs associated with the EPA does not believe the environmental notifications, notification of compliance proposed rule requirements are less health or safety risks addressed by this status, reports of periodic performance than 0.001 percent of annual sales action present a disproportionate risk to tests, and semiannual compliance revenues. Our conclusion is that there children. This action’s health and risk reports. are no significant economic impacts on assessments are contained in sections III Total estimated burden: The annual a substantial number of small entities and IV of this preamble and further recordkeeping and reporting burden for from these proposed amendments. We documented in the risk report titled this information collection, averaged have, therefore, concluded that this Residual Risk Assessment for the over the first 3 years of this ICR, is action will have no net regulatory Surface Coating of Wood Building estimated to total 19,600 labor hours per burden for all directly regulated small Products Source Category in Support of year. Burden is defined at 5 CFR entities. the March 2018 Risk and Technology 1320.3(b). Review Proposed Rule, in the docket for Total estimated cost: $1,418,000 per E. Unfunded Mandates Reform Act this action. year in labor costs and an additional (UMRA) one-time cost of $22,000 for an initial I. Executive Order 13211: Actions performance test at one facility. This action does not contain an Concerning Regulations That Included in the $1,418,000 per year in unfunded mandate of $100 million or Significantly Affect Energy Supply, labor cost estimate is a labor cost of more as described in UMRA, 2 U.S.C. Distribution, or Use $36,618 for all 55 facilities to become 1531–1538, and does not significantly or This action is not subject to Executive familiar with the proposed rule uniquely affect small governments. The Order 13211 because it is not a requirements. action imposes no enforceable duty on significant regulatory action under An agency may not conduct or any state, local, or tribal governments or Executive Order 12866. sponsor, and a person is not required to the private sector. respond to, a collection of information J. National Technology Transfer and unless it displays a currently valid OMB F. Executive Order 13132: Federalism Advancement Act (NTTAA) and 1 CFR control number. The OMB control Part 51 numbers for the EPA’s regulations in 40 This action does not have federalism This action involves technical CFR are listed in 40 CFR part 9. implications. It will not have substantial standards. The EPA proposes to use Submit your comments on the direct effects on the states, on the ASTM D6348–03 (Reapproved 2010), Agency’s need for this information, the relationship between the national ‘‘Standard Test Method for accuracy of the provided burden government and the states, or on the Determination of Gaseous Compounds estimates, and any suggested methods distribution of power and by Extractive Direct Interface Fourier for minimizing respondent burden to responsibilities among the various Transform Infrared (FTIR) the EPA using the docket identified at levels of government. Spectroscopy’’ as an alternative to using

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Method 320 under certain conditions method is used for the determination of K. Executive Order 12898: Federal and incorporate this alternative method the specific gravity of drying oils, Actions To Address Environmental by reference. Method 320 is proposed to varnishes, alkyd resins, fatty acids, and Justice in Minority Populations and be added for the measurement of related materials. Low-Income Populations • organic HAP emissions if formaldehyde ASTM D2111–95 (2000), ‘‘Standard The EPA believes that this action does is a major organic HAP component of Test Methods for Specific Gravity of not have disproportionately high and the surface coating exhaust stream. Halogenated Organic Solvents and Their adverse human health or environmental Also, instead of the current ASTM D Admixtures.’’ These test methods are effects on minority populations, low- 6348–12e1 standard, the ASTM D6348– used for the determination of the income populations, and/or indigenous 03 (Reapproved 2010) standard is specific gravity of halogenated organic peoples, as specified in Executive Order referenced in the Surface Coating of solvents and solvent admixtures. 12898 (59 FR 7629, February 16, 1994). • Wood Building Products NESHAP. The ASTM D2369–01, ‘‘Test Method for The documentation for this decision QC criteria in ASTM D6348–03 Volatile Content of Coatings.’’ This test is contained in section IV.B of this (Reapproved 2010) are more closely method describes a procedure used for preamble and the technical report titled matched to the testing requirements in the determination of the weight percent Risk and Technology Review—Analysis this NESHAP. Use of ASTM D6348–03 volatile content of solvent-borne and of Demographic Factors for Populations (Reapproved 2010) is defined in 40 CFR waterborne coatings. Living Near Wood Building Products 63.4751(i)(4). ASTM D6348–03 • ASTM D2697–86 (Reapproved Surface Coating Sources, which is (Reapproved 2010) is an extractive 1998), ‘‘Standard Test Method for located in the public docket for this Fourier Transform Infrared Volume Nonvolatile Matter in Clear or action. Spectroscopy based field test method Pigmented Coatings.’’ This test method We examined the potential for any EJ and is used to quantify gas phase is applicable to the determination of the issues that might be associated with the concentrations of multiple target volume of nonvolatile matter in source category, by performing a compounds in emission streams from coatings. demographic analysis of the population stationary sources. • ASTM D6093–97 (Reapproved ANSI A135.4–2012 is reasonably close to the facilities. In this analysis, 2003), ‘‘Standard Test Method for we evaluated the distribution of HAP- available from the Composite Panel Percent Volume Nonvolatile Matter in Association, 19465 Deerfield Avenue, related cancer and noncancer risks from Clear or Pigmented Coatings Using a Suite 306, Leesburg, VA 20176. The the Surface Coating of Wood Building Helium Gas Pycnometer.’’ This test standard specifies requirements and test Products NESHAP source category method is used for the determination of methods for water absorption, thickness across different social, demographic, the percent volume nonvolatile matter swelling, modulus of rupture, tensile and economic groups within the in clear and pigmented coatings. strength, surface finish, dimensions, populations living near facilities The ASTM standards are reasonably squareness, edge straightness, and identified as having the highest risks. available from the American Society for moisture content for five classes of The methodology and the results of the hardboard, including tileboard, part of a Testing and Materials (ASTM), 100 Barr demographic analyses are included in a subcategory in the standard. Harbor Drive, Post Office Box C700, technical report, Risk and Technology The EPA also proposes to use ASTM West Conshohocken, PA 19428–2959. Review—Analysis of Demographic D4840–99, ‘‘Standard Guide for See http://www.astm.org/. Factors for Populations Living Near Sampling Chain-of-Custody While the EPA has identified another Wood Building Product Surface Coating Procedures,’’ in Method 326 for its 18 VCS as being potentially applicable Facilities, available in the docket for this chain of custody procedures and to this proposed rule, we have decided action. incorporate this alternative method by not to use these VCS in this rulemaking. The results of the Surface Coating of reference. The ASTM D4840–99 guide The use of these VCS would not be Wood Building Products NESHAP contains a comprehensive discussion of practical due to lack of equivalency, source category demographic analysis potential requirements for a sample documentation, validation date, and indicate that emissions from the source chain-of-custody program and describes other import technical and policy category expose approximately 800 the procedures involved in sample considerations. See the memorandum people to a cancer risk at or above chain-of-custody. The purpose of ASTM titled Voluntary Consensus Standard 1-in-1 million and no one exposed to a D4840–99 procedures is to provide Results for National Emission Standards chronic noncancer TOSHI greater than accountability for and documentation of for Hazardous Air Pollutants: Surface 1. The specific demographic results sample integrity from the time samples Coating of Wood Building Products, in indicate that the percentage of the are collected until the time samples are the docket for this proposed rule for the population potentially impacted by disposed. Method 326 is proposed to be reasons for these determinations. emissions is greater than its added for the measurement of organic Under 40 CFR 63.7(f) and 40 CFR corresponding national percentage for HAP emissions if isocyanate is a major 63.8(f) of subpart A of the General the minority population (84 percent for organic HAP component of the surface Provisions, a source may apply to the the source category compared to 38 coating exhaust stream. EPA for permission to use alternative percent nationwide), the African The EPA proposes to use the test methods or alternative monitoring American population (75 percent for the following five VCS as alternatives to requirements in place of any required source category compared to 12 percent Method 24 for the determination of testing methods, performance nationwide) and for the population over volatile matter content, water content, specifications, or procedures in the final age 25 without a high school diploma density, volume solids, and weight rule or any amendments. (25 percent for the source category solids of surface coatings and The EPA welcomes comments on this compared to 14 percent nationwide). incorporate these VCS by reference: aspect of the proposed rulemaking and, The proximity results (irrespective of • ASTM D1963–85 (1996), ‘‘Standard specifically, invites the public to risk) indicate that the population Test Method for Specific Gravity of identify potentially applicable VCS and percentages for certain demographic Drying Oils, Varnishes, Resins, and to explain why such standards should categories within 5 km of source Related Materials at 25/25°C.’’ This test be used in this regulation. category emissions are greater than the

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corresponding national percentage for ■ h. Redesignating newly redesignated approved for Method 326 in appendix A those same demographics. The paragraphs (g)(24) through (g)(59) as to part 63. following demographic percentages for (g)(27) through (g)(62); * * * * * populations residing within close ■ i. Redesignating newly redesignated (77) ASTM D6093–97 (Reapproved proximity to facilities with Surface paragraphs (g)(20) through (g)(23) as 2003), Standard Test Method for Percent Coating of Wood Building Products (g)(22) through (g)(25); Volume Nonvolatile Matter in Clear or source category facilities are higher than ■ j. Redesignating newly redesignated Pigmented Coatings Using a Helium Gas the corresponding nationwide paragraphs (g)(18) through (g)(19) as Pycnometer, IBR approved for percentage: African American, ages 65 (g)(19) through (g)(20); §§ 63.3161, 63.3521, 63.3941, 63.4141, and up, over age 25 without a high ■ k. Adding new paragraphs (g)(18), 63.4741(a) and (b), 63.4761(j), school diploma, and below the poverty (21), (26) and (63); and 63.4941(b), and 63.5160(c). level. ■ l. Revising newly redesignated * * * * * The risks due to HAP emissions from paragraphs (g)(29), (77), and (82). (82) ASTM D6348–03 (Reapproved this source category are low for all The revisions and additions read as 2010), Standard Test Method for populations (e.g., inhalation cancer risks follows: Determination of Gaseous Compounds are less than 6-in-1 million for all by Extractive Direct Interface Fourier populations and noncancer HIs are less § 63.14 Incorporations by reference. Transform Infrared (FTIR) Spectroscopy, than 1). We do not expect this proposal * * * * * including Annexes A1 through A8, to achieve significant reductions in HAP (c) American National Standards Approved October 1, 2010, IBR emissions. We have concluded that this Institute (ANSI), 25 W. 43rd Street, 4th approved for §§ 63.1571(a), 63.4651(i), proposal will not have unacceptable Floor, New York, NY 10036, Telephone 63.4766(b), Tables 4 and 5 to subpart adverse human health or environmental (212) 642–4980, and http:// JJJJJ, tables 4 and 6 to subpart KKKKK, effects on minority or low-income www.ansi.org. tables 1, 2, and 5 to subpart UUUUU populations. The proposal does not (1) ANSI A135.4–2012, Basic and appendix B to subpart UUUUU. affect the level of protection provided to Hardboard, approved June 8, 2012, IBR * * * * * human health or the environment. approved for § 63.4781. However, this proposal, if finalized, will (2) [Reserved] Subpart QQQQ—[Amended] provide additional benefits to these demographic groups by improving the * * * * * ■ 3. Section 63.4683 is amended by compliance, monitoring, and (g) * * * revising paragraphs (a) and (b) to read implementation of the NESHAP. (11) ASTM D1475–90, Standard Test as follows: Method for Density of Paint, Varnish List of Subjects in 40 CFR Part 63 § 63.4683 When do I have to comply with Lacquer, and Related Products, IBR this subpart? Environmental protection, Air approved for appendix A to subpart II * * * * * pollution control, Hazardous and §§ 63.4741(b) and (c) and 63.4751(c). (a) For a new or reconstructed affected substances, Incorporation by reference, source, the compliance date is the Surface Coating of Wood Building * * * * * applicable date in paragraph (a)(1), (2) Products, Reporting and recordkeeping (18) ASTM D1963–85 (1996), or (3) of this section: requirements. Standard Test Method for Specific (1) If the initial startup of your new Dated: April 23, 2018. Gravity of Drying Oils, Varnishes, or reconstructed affected source is Resins, and Related Materials at 25/25 before May 28, 2003, the compliance E. Scott Pruitt, ° Administrator. C, approved 1996, IBR approved for date is May 28, 2003; except that the §§ 63.4741(a) and 63.4761(j). For the reasons set out in the compliance date for the revised preamble, title 40, chapter I, part 63 of * * * * * requirements promulgated at the Code of Federal Regulations is (21) ASTM D2111–95 (2000), §§ 63.4683, 63.4700, 63.4710, 63.4720, proposed to be amended as follows: Standard Test Methods for Specific 63.4730, 63.4741, 63.4751, 63.4761, Gravity of Halogenated Organic Solvents 63.4763, 63.4764, 63.4766, 63.4781, PART 63—[AMENDED] and Their Admixtures, approved 2000, Table 4 of this subpart QQQQ, and IBR approved for §§ 63.4741(a) and Appendix A of this subpart QQQQ ■ 1. The authority citation for part 63 63.4761(j). published on [DATE OF PUBLICATION continues to read as follows: * * * * * OF FINAL RULE IN THE FEDERAL Authority: 42 U.S.C. 7401 et seq. (26) ASTM D2369–01, Test Method REGISTER] is [DATE 180 DAYS AFTER for Volatile Content of Coatings, THE DATE OF PUBLICATION OF Subpart A—[Amended] approved 2001, IBR approved for FINAL RULE IN THE FEDERAL §§ 63.4741(a) and 63.4761(j). REGISTER]. ■ 2. Section 63.14 is amended by: (2) If the initial startup of your new ■ a. Redesignating paragraphs (i) * * * * * or reconstructed affected source occurs through (s) as (j) through (t); (29) ASTM D2697–86 (Reapproved after May 28, 2003, the compliance date ■ b. Redesignating paragraph (d) as (i); 1998), Standard Test Method for is the date of initial startup of your ■ c. Redesignating paragraphs (e) Volume Nonvolatile Matter in Clear or affected source; except that if the initial through (h) as (d) through (g); Pigmented Coatings, IBR approved for startup of your new or reconstructed ■ d. Redesignating paragraph (c) as (h); §§ 63.3161(f), 63.3521(b), 63.3941(b), affected source occurs after May 28, ■ e. Adding new paragraph (c).; 63.4141(b), 63.4741(a) and (b), 2003, but on or before May 16, 2018, the ■ f. Revising newly redesignated 63.4761(j), 63.4941(b), and 63.5160(c). compliance date for the revised paragraph (g)(11); * * * * * requirements promulgated at ■ g. Redesignating newly redesignated (63) ASTM D4840–99, Standard §§ 63.4683, 63.4700, 63.4710, 63.4720, paragraphs (g)(60) through (g)(105) as Guide for Sampling Chain-of-Custody 63.4730, 63.4741, 63.4751, 63.4761, (g)(64) through (g)(109); Procedures, approved 1999, IBR 63.4763, 63.4764, 63.4766, 63.4781,

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Table 4 of this subpart QQQQ, and the applicable operating limits for you to make any further efforts to Appendix A of this subpart QQQQ emission capture systems and add-on reduce emissions if levels required by published on [DATE OF PUBLICATION control devices required by § 63.4692 at the applicable standard have been OF FINAL RULE IN THE FEDERAL all times, except during periods of SSM, achieved. Determination of whether a REGISTER] is [DATE 180 DAYS AFTER and except for solvent recovery systems source is operating in compliance with THE DATE OF PUBLICATION OF for which you conduct liquid-liquid operation and maintenance FINAL RULE IN THE FEDERAL material balances according to requirements will be based on REGISTER]. § 63.4761(j). After [DATE 180 DAYS information available to the (3) If the initial startup of your new AFTER PUBLICATION OF FINAL RULE Administrator which may include, but or reconstructed affected source occurs IN THE FEDERAL REGISTER], the is not limited to, monitoring results, after May 16, 2018, the compliance date coating operation(s) must be in review of operation and maintenance is [DATE OF PUBLICATION OF FINAL compliance with the operating limits for procedures, review of operation and RULE IN THE FEDERAL REGISTER] or emission capture systems and add-on maintenance records, and inspection of the date of startup, whichever is later. control devices required by § 63.4692 at the source. (b) For an existing affected source, the all times, except for solvent recovery * * * * * compliance date is the date 3 years after systems for which you conduct liquid- (d) For existing sources until [DATE May 28, 2003, except that the liquid material balances according to 180 DAYS AFTER DATE OF compliance date for the revised § 63.4761(j). PUBLICATION OF FINAL RULE IN requirements promulgated at * * * * * THE FEDERAL REGISTER], if your §§ 63.4683, 63.4700, 63.4710, 63.4720, (3) For new or reconstructed sources affected source uses an emission capture 63.4730, 63.4741, 63.4751, 63.4761, with initial startup after May 16, 2018, system and add-on control device, you 63.4763, 63.4764, 63.4766, 63.4781, any coating operation(s) for which you must develop a written startup, Table 4 of this subpart QQQQ, and use the emission rate with add-on shutdown, and malfunction plan Appendix A of this subpart QQQQ controls option, as specified in (SSMP) according to the provisions in published on [DATE OF PUBLICATION § 63.4691(c), must be in compliance § 63.6(e)(3). The SSMP must address OF FINAL RULE IN THE FEDERAL with the applicable emission limitations startup, shutdown, and corrective REGISTER] is [DATE 180 DAYS AFTER and work practice standards as specified actions in the event of a malfunction of THE DATE OF PUBLICATION OF in paragraphs (a)(3)(i) through (iii) of the emission capture system or the add- FINAL RULE IN THE FEDERAL this section. on control device. The SSMP must also REGISTER]. (i) The coating operation(s) must be in address any coating operation ■ 4. Section 63.4700 is amended by: compliance with the applicable equipment that may cause increased ■ a. Revising the introductory text of emission limit in § 63.4690 at all times. emissions or that would affect capture paragraph (a)(2), paragraphs (a)(2)(i) and (ii) The coating operation(s) must be efficiency if the process equipment (ii); in compliance with the operating limits malfunctions, such as conveyors that ■ b. Adding paragraph (a)(3); and for emission capture systems and add- move parts among enclosures. ■ c. Revising paragraphs (b) and (d). on control devices required by § 63.4692 ■ 5. Section 63.4710 is amended by The revisions and addition read as at all times, except for solvent recovery revising paragraph (c)(8)(ii) to read as follows: systems for which you conduct liquid- follows: § 63.4700 What are my general liquid material balances according to § 63.4710 What notifications must I requirements for complying with this § 63.4761(j). submit? subpart? (iii) The coating operation(s) must be (a) * * * in compliance with the work practice * * * * * (2) Any coating operation(s) at standards in § 63.4693 at all times. (c) * * * existing sources for which you use the (b) For existing sources as of May 16, (8) * * * emission rate with add-on controls 2018, prior to [DATE 181 DAYS AFTER (ii) For the emission rate without add- option, as specified in § 63.4691(c), PUBLICATION OF FINAL RULE IN on controls option, provide the must be in compliance with the THE FEDERAL REGISTER], you must calculation of the total mass of organic applicable emission limitations as always operate and maintain your HAP emissions for each month; the specified in paragraphs (a)(2)(i) through affected source, including all air calculation of the total volume of (iii) of this section. pollution control and monitoring coating solids used each month; and the (i) Prior to [DATE 181 DAYS AFTER equipment you use for purposes of calculation of the 12-month organic DATE OF PUBLICATION OF FINAL complying with this subpart, according HAP emission rate, using Equations 1 RULE IN THE FEDERAL REGISTER], to the provisions in § 63.6(e)(1)(i). After and 1A (or 1A-alt) through 1C, 2, and 3, the coating operation(s) must be in [DATE 180 DAYS AFTER respectively, of § 63.4751. compliance with the applicable PUBLICATION OF FINAL RULE IN * * * * * emission limit in § 63.4690 at all times, THE FEDERAL REGISTER] for such ■ 6. Section 63.4720 is amended by: except during periods of startup, existing sources and after [DATE OF ■ a. Revising paragraph (a)(6)(ii) and the shutdown, and malfunction (SSM). PUBLICATION OF FINAL RULE IN introductory text of paragraph (a)(7); After [DATE 180 DAYS AFTER THE FEDERAL REGISTER] for new or ■ b. Redesignating paragraphs (a)(7)(i) PUBLICATION OF FINAL RULE IN reconstructed sources, you must always through (a)(7)(xiv) as paragraphs THE FEDERAL REGISTER], the coating operate and maintain your affected (a)(7)(i)(A) through (a)(7)(i)(N); operation(s) must be in compliance with source, including associated air ■ c. Adding new paragraph (a)(7)(i) the applicable emission limit in pollution control equipment and introductory text; § 63.4690 at all times. monitoring equipment, in a manner ■ d. Revising paragraph (a)(7)(ii) and the (ii) Prior to [DATE 181 DAYS AFTER consistent with safety and good air introductory text of paragraph (c); and PUBLICATION OF FINAL RULE IN pollution control practices for ■ e. Adding paragraph (d). THE FEDERAL REGISTER], the coating minimizing emissions. The general duty The revisions and additions read as operation(s) must be in compliance with to minimize emissions does not require follows:

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§ 63.4720 What reports must I submit? the coatings, thinners, and cleaning total source operating time during that (a) * * * materials used each month, using semiannual reporting period. (6) * * * Equations 1 and 1A through 1C of (K) A description of any changes in (ii) The calculations used to § 63.4751; and, if applicable, the the CPMS, coating operation, emission determine the 12-month organic HAP calculation used to determine mass of capture system, or add-on control emission rate for the compliance period organic HAP in waste materials device since the last semiannual in which the deviation occurred. You according to § 63.4751(e)(4); the reporting period. must provide the calculations for calculation of the total volume of (L) For each deviation from the work Equations 1, 1A (or 1A-alt) through 1C, coating solids used each month, using practice standards, a description of the 2, and 3 in § 63.4751; and if applicable, Equation 2 of § 63.4751; the calculation deviation, the date and time period of the calculation used to determine mass of the mass of organic HAP emission the deviation, and the actions you took of organic HAP in waste materials reduction each month by emission to correct the deviation. according to § 63.4751(e)(4). You do not capture systems and add-on control (M) A statement of the cause of each need to submit background data devices, using Equations 1 and 1A deviation. supporting these calculations (e.g., through 1D of § 63.4761, and Equations * * * * * information provided by materials 2, 3, and 3A through 3C of § 63.4761, as (c) SSM reports. For existing sources suppliers or manufacturers, or test applicable; the calculation of the total until [DATE 180 DAYS AFTER DATE reports). mass of organic HAP emissions each OF PUBLICATION OF FINAL RULE IN * * * * * month, using Equation 4 of § 63.4761; THE FEDERAL REGISTER], if you used (7) Deviations: emission rate with and the calculation of the 12-month the emission rate with add-on controls add-on controls option. You must be in organic HAP emission rate, using option and you had an SSM during the compliance with the emission Equation 5 of § 63.4761. You do not semiannual reporting period, you must limitations in this subpart as specified need to submit the background data submit the reports specified in in paragraphs (7)(i) and (ii) of this supporting these calculations (e.g., paragraphs (c)(1) and (2) of this section. section. information provided by materials * * * * * (i) For existing sources until [DATE suppliers or manufacturers, or test (d) Electronic reporting. (1) Within 60 180 DAYS AFTER DATE OF reports). days after the date of completing each PUBLICATION OF FINAL RULE IN (C) A brief description of the CPMS. performance test (as defined in § 63.2) THE FEDERAL REGISTER], if you used (D) The date of the latest CPMS required by this subpart, the owner or the emission rate with add-on controls certification or audit. operator must submit the results of the option and there was a deviation from (E) The date and time that each CPMS performance test following the an emission limitation (including any was inoperative, except for zero (low- procedure specified in either paragraph periods when emissions bypassed the level) and high-level checks. (d)(1)(i) or (ii) of this section. add-on control device and were diverted (F) The date, time, and duration that (i) For data collected using test to the atmosphere), the semiannual each CPMS was out-of-control, methods supported by the EPA’s compliance report must contain the including the information in Electronic Reporting Tool (ERT) as information in paragraphs (a)(7)(i)(A) § 63.8(c)(8). listed on the EPA’s ERT website through (N) of this section. This (G) The date and time period of each (https://www.epa.gov/electronic- includes periods of SSM during which deviation from an operating limit in reporting-air-emissions/electronic- deviations occurred. Table 3 to this subpart, date and time reporting-tool-ert) at the time of the test, * * * * * period of any bypass of the add-on the owner or operator must submit the (ii) After [DATE OF PUBLICATION control device. results of the performance test to the OF FINAL RULE IN THE FEDERAL (H) A summary of the total duration EPA via CEDRI. (CEDRI can be accessed REGISTER] for new and reconstructed of each deviation from an operating through the EPA’s Central Data sources and after [DATE 180 DAYS limit in Table 3 to this subpart, each Exchange (CDX) (https://cdx.epa.gov/).) AFTER DATE OF PUBLICATION OF bypass of the add-on control device Performance test data must be submitted FINAL RULE IN THE FEDERAL during the semiannual reporting period, in a file format generated using the REGISTER] for existing sources, if you and the total duration as a percent of the EPA’s ERT or an alternate electronic file used the emission rate with add-on total source operating time during that format consistent with the extensible controls option and there was a semiannual reporting period. markup language (XML) schema listed deviation from an emission limitation (I) A breakdown of the total duration on the EPA’s ERT website. If the owner (including any periods when emissions of the deviations from the operating or operator claims that some of the bypassed the add-on control device and limits in Table 3 to this subpart and performance test information being were diverted to the atmosphere), the bypasses of the add-on control device submitted is confidential business semiannual compliance report must during the semiannual reporting period information (CBI), the owner or operator contain the information in paragraphs by identifying deviations due to control must submit a complete file generated (a)(7)(ii)(A) through (M) of this section. equipment problems, process problems, through the use of the EPA’s ERT or an (A) The beginning and ending dates of other known causes, and other alternate electronic file consistent with each compliance period during which unknown causes; a list of the affected the XML schema listed on the EPA’s the 12-month organic HAP emission rate source or equipment, an estimate of the ERT website, including information exceeded the applicable emission limit quantity of each regulated pollutant claimed to be CBI, on a compact disc, in § 63.4690. emitted over any emission limit, and a flash drive, or other commonly used (B) The calculations used to description of the method used to electronic storage media to the EPA. The determine the 12-month organic HAP estimate the emissions. electronic media must be clearly marked emission rate for each compliance (J) A summary of the total duration of as CBI and mailed to U.S. EPA/OAPQS/ period in which a deviation occurred. CPMS downtime during the semiannual CORE CBI Office, Attention: Group You must provide the calculation of the reporting period and the total duration Leader, Measurement Policy Group, MD total mass of organic HAP emissions for of CPMS downtime as a percent of the C404–02, 4930 Old Page Rd., Durham,

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NC 27703. The same ERT or alternate the time of the notification, the date you ■ c. Adding new introductory text of file with the CBI omitted must be reported. In any circumstance, the paragraph (k)(1) and new paragraph submitted to the EPA via the EPA’s CDX report must be submitted electronically (k)(2); as described earlier in this paragraph. as soon as possible after the outage is ■ d. Redesignating paragraphs (k)(5)(i) (ii) For data collected using test resolved. The decision to accept the through (iii) as paragraphs (k)(1)(v)(A) methods that are not supported by the claim of EPA system outage and allow through (C); EPA’s ERT as listed on the EPA’s ERT an extension to the reporting deadline is ■ e. Redesignating introductory text of website at the time of the test, the owner solely within the discretion of the paragraph (k)(5) as introductory text of or operator must submit the results of Administrator. paragraph (k)(1)(v) and revising the the performance test to the newly redesignated paragraph; (4) If you are required to Administrator at the appropriate ■ f. Redesignating paragraphs (k)(6)(i) electronically submit a report through address listed in § 63.13 unless the and (ii) as paragraphs (k)(1)(vi)(A) and CEDRI in the EPA’s CDX and a force Administrator agrees to or specifies an (B); majeure event is about to occur, occurs, alternative reporting method. ■ g. Redesignating introductory text of (2) You must submit notifications and or has occurred or there are lingering paragraph (k)(6) as introductory text of semiannual compliance reports to the effects from such an event within the paragraph (k)(1)(vi) and revising the EPA via the CEDRI. (CEDRI can be period of time beginning 5 business newly redesignated paragraph; and accessed through the EPA’s CDX days prior to the date the submission is ■ h. Redesignating paragraphs (k)(7) and (https://cdx.epa.gov/).) You must use due, the owner or operator may assert a (8) as paragraphs (k)(1)(vii) and (viii). the appropriate electronic report in claim of force majeure for failure to The revisions and additions read as CEDRI for this subpart or an alternative timely comply with the reporting follows: requirement. For the purposes of this electronic file format consistent with the § 63.4730 What records must I keep? XML schema listed on the CEDRI section, a force majeure event is defined * * * * * website (https://www.epa.gov/ as an event that will be or has been caused by circumstances beyond the (c) * * * electronic-reporting-air-emissions/ (3) For the emission rate without add- compliance-and-emissions-data- control of the affected facility, its contractors, or any entity controlled by on controls option, a record of the reporting-interface-cedri). If the calculation of the total mass of organic reporting form specific to this subpart is the affected facility that prevents you from complying with the requirement to HAP emissions for the coatings, not available in CEDRI at the time that thinners, and cleaning materials used the report is due, you must submit the submit a report electronically within the time period prescribed. Examples of each month, using Equations 1, 1A (or report to the Administrator at all the 1A-alt) through 1C, and 2 of § 63.4751; appropriate addresses listed in § 63.13. such events are acts of nature (e.g., hurricanes, earthquakes, or floods), acts and, if applicable, the calculation used Once the reporting template has been to determine mass of organic HAP in available in CEDRI for 1 year, you must of war or terrorism, or equipment failure or safety hazard beyond the control of waste materials according to begin submitting all subsequent reports § 63.4751(e)(4); the calculation of the via CEDRI. The reports must be the affected facility (e.g., large scale power outage). If you intend to assert a total volume of coating solids used each submitted by the deadlines specified in month, using Equation 2 of § 63.4751; this subpart, regardless of the method in claim of force majeure, you must submit notification to the Administrator in and the calculation of each 12-month which the reports are submitted. organic HAP emission rate, using (3) If you are required to writing as soon as possible following the Equation 3 of § 63.4751. electronically submit a report through date you first knew, or through due CEDRI in the EPA’s CDX, and due to a diligence should have known, that the * * * * * planned or actual outage of either the event may cause or caused a delay in (k) If you use the emission rate with EPA’s CEDRI or CDX systems within the reporting. You must provide to the add-on controls option, you must keep period of time beginning 5 business Administrator a written description of the records specified in paragraphs days prior to the date that the the force majeure event and a rationale (k)(1) through (2) of this section. submission is due, you will be or are for attributing the delay in reporting (1) For existing sources until [DATE precluded from accessing CEDRI or CDX beyond the regulatory deadline to the 180 DAYS AFTER DATE OF and submitting a required report within force majeure event; describe the PUBLICATION OF FINAL RULE IN the time prescribed, you may assert a measures taken or to be taken to THE FEDERAL REGISTER]: claim of EPA system outage for failure minimize the delay in reporting; and * * * * * to timely comply with the reporting identify a date by which you propose to (v) For each capture system that is not requirement. You must submit report, or if you have already met the a PTE, the data and documentation you notification to the Administrator in reporting requirement at the time of the used to determine capture efficiency writing as soon as possible following the notification, the date you reported. In according to the requirements specified date you first knew, or through due any circumstance, the reporting must in §§ 63.4764 and 63.4765(b) through diligence should have known, that the occur as soon as possible after the force (e), including the records specified in event may cause or caused a delay in majeure event occurs. The decision to paragraphs (k)(1)(v)(A) through (C) of reporting. You must provide to the accept the claim of force majeure and this section that apply to you. Administrator a written description allow an extension to the reporting * * * * * identifying the date, time and length of deadline is solely within the discretion (vi) The records specified in the outage; a rationale for attributing the of the Administrator. paragraphs (k)(1)(vi)(A) and (B) of this section for each add-on control device delay in reporting beyond the regulatory ■ 7. Section 63.4730 is amended by: deadline to the EPA system outage; organic HAP destruction or removal describe the measures taken or to be ■ a. Revising paragraph (c)(3) and the efficiency determination as specified in taken to minimize the delay in introductory text of paragraph (k); § 63.4766. reporting; and identify a date by which ■ b. Redesignating paragraphs (k)(1) * * * * * you propose to report, or if you have through (4) as paragraphs (k)(1)(i) (2) After [DATE of PUBLICATION OF already met the reporting requirement at through (iv); FINAL RULE IN THE FEDERAL

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REGISTER] for new and reconstructed M to 40 CFR part 51 for either a and Their Admixtures,’’ (incorporated sources and after [DATE 180 DAYS temporary total enclosure or a building by reference, see § 63.14); AFTER DATE OF PUBLICATION OF enclosure. (iii) ASTM Method D2369–01, ‘‘Test FINAL RULE IN THE FEDERAL (C) Records for an alternative Method for Volatile Content of REGISTER] for existing sources: protocol. Records needed to document a Coatings,’’ (incorporated by reference, (i) The records required to show capture efficiency determination using see § 63.14); continuous compliance with each an alternative method or protocol as (iv) ASTM Method D2697–86 (1998), operating limit specified in Table 3 to specified in § 63.4765(e), if applicable. ‘‘Standard Test Method for Volume this subpart that applies to you. (iv) The records specified in Nonvolatile Matter in Clear or (ii) For each capture system that is a paragraphs (k)(2)(iv)(A) and (B) of this Pigmented Coatings,’’ (incorporated by PTE, the data and documentation you section for each add-on control device reference, see § 63.14); and used to support a determination that the organic HAP destruction or removal (v) ASTM Method D6093–97 capture system meets the criteria in efficiency determination as specified in (Reapproved 2003), ‘‘Standard Test Method 204 of appendix M to 40 CFR § 63.4766. Method for Percent Volume Nonvolatile part 51 for a PTE and has a capture (A) Records of each add-on control Matter in Clear or Pigmented Coatings efficiency of 100 percent, as specified in device performance test conducted Using a Helium Gas Pycnometer,’’ § 63.4765(a). according to §§ 63.4764 and 63.4766. (incorporated by reference, see § 63.14). (iii) For each capture system that is (B) Records of the coating operation * * * * * not a PTE, the data and documentation conditions during the add-on control (b) * * * you used to determine capture device performance test showing that (3) * * * efficiency according to the requirements the performance test was conducted mvolatiles = Total volatile matter specified in §§ 63.4764 and 63.4765(b) under representative operating content of the coating, including HAP, through (e), including the records conditions. volatile organic compounds (VOC), specified in paragraphs (k)(2)(iii)(A) (v) Records of the data and water, and exempt compounds, through (C) of this section that apply to calculations you used to establish the determined according to Method 24 in you. emission capture and add-on control appendix A–7 of 40 CFR part 60, grams (A) Records for a liquid-to- device operating limits as specified in volatile matter per liter coating. uncaptured-gas protocol using a § 63.4767 and to document compliance Davg = Average density of volatile temporary total enclosure or building with the operating limits as specified in matter in the coating, grams volatile enclosure. Records of the mass of total Table 3 to this subpart. matter per liter volatile matter, volatile hydrocarbon (TVH) as measured (vi) A record of the work practice plan determined from test results using by Method 204A or F of appendix M to required by § 63.4693, and ASTM Method D1475–90, ‘‘Standard 40 CFR part 51 for each material used documentation that you are Test Method for Density of Paint, in the coating operation, and the total implementing the plan on a continuous Varnish Lacquer, and Related TVH for all materials used during each basis. Products,’’ (incorporated by reference, capture efficiency test run, including a ■ 8. Section 63.4741 is amended by see § 63.14), information from the copy of the test report. Records of the revising paragraph (a)(2), the defined supplier or manufacturer of the mass of TVH emissions not captured by terms ‘‘mvolatiles’’ and ‘‘Davg’’ in Equation material, or reference sources providing the capture system that exited the 1 in the introductory text of paragraph density or specific gravity data for pure temporary total enclosure or building (b)(3), and paragraph (c) to read as materials. If there is disagreement enclosure during each capture efficiency follows: between ASTM Method D1475–90 test test run as measured by Method 204D or results and other information sources, E of appendix M to 40 CFR part 51, § 63.4741 How do I demonstrate initial the test results will take precedence. including a copy of the test report. compliance with the emission limitations? (c) Determine the density of each Records documenting that the enclosure * * * * * coating. Determine the density of each used for the capture efficiency test met (a) * * * coating used during the compliance the criteria in Method 204 of appendix (2) Method 24 (appendix A–7 to 40 period from test results using ASTM M to 40 CFR part 51 for either a CFR part 60). For coatings, you may use Method D1475–90, ‘‘Standard Test temporary total enclosure or a building Method 24 to determine the mass Method for Density of Paint, Varnish enclosure. fraction of nonaqueous volatile matter Lacquer, and Related Products,’’ (B) Records for a gas-to-gas protocol and use that value as a substitute for (incorporated by reference, see § 63.14), using a temporary total enclosure or a mass fraction of organic HAP. (Note: or information from the supplier or building enclosure. Records of the mass Method 24 is not appropriate for those manufacturer of the material. If there is of TVH emissions captured by the coatings with a water content that disagreement between ASTM Method emission capture system as measured by would result in an effective detection D1475–90 test results and the supplier’s Method 204B or C of appendix M to 40 limit greater than the applicable or manufacturer’s information, the test CFR part 51 at the inlet to the add-on emission limit.) One of the voluntary results will take precedence. control device, including a copy of the consensus standards in paragraphs * * * * * test report. Records of the mass of TVH (a)(2)(i) through (v) may be used as an ■ 9. Section 63.4751 is amended by emissions not captured by the capture alternative to using Method 24. revising paragraph (c) and the defined system that exited the temporary total (i) ASTM Method D1963–85 (1996), term ‘‘A’’ in Equation 1 in the enclosure or building enclosure during ‘‘Standard Test Method for Specific introductory text of paragraph (e) and each capture efficiency test run as Gravity of Drying Oils, Varnishes, adding paragraph (i) to read as follows: measured by Method 204D or E of Resins, and Related Materials at 25/ appendix M to 40 CFR part 51, 25°C,’’ (incorporated by reference, see § 63.4751 How do I demonstrate initial including a copy of the test report. § 63.14); compliance with the emission limitations? Records documenting that the enclosure (ii) ASTM Method D2111–95 (2000), * * * * * used for the capture efficiency test met ‘‘Standard Test Methods for Specific (c) Determine the density of each the criteria in Method 204 of appendix Gravity of Halogenated Organic Solvents material. Determine the density of each

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coating, thinner, and cleaning material sources, the test results will take part 60 or Method 320 or 326 of used during each month from test precedence. appendix A to 40 CFR part 63 for results using ASTM Method D1475–90, * * * * * formaldehyde or isocyanates ‘‘Standard Test Method for Density of (e) * * * respectively to obtain an organic HAP Paint, Varnish Lacquer, and Related A = Total mass of organic HAP in the emission factor (EF). The voluntary Products,’’ (incorporated by reference, coatings used during the month, consensus standard ASTM D6348–03 see § 63.14), information from the grams, as calculated in Equation 1A (incorporated by reference, see § 63.14) supplier or manufacturer of the (or 1A-alt) of this section. may be used as an alternative to using material, or reference sources providing * * * * * Method 320 under the conditions density or specific gravity data for pure (i) Alternative compliance specified in paragraphs (i)(4)(A) and (B) materials. If there is disagreement demonstration. As an alternative to of this section. between ASTM Method D1475–90 test paragraph (h) of this section, you may (1) You must also calculate the mass results and such other information demonstrate initial compliance by of organic HAP emitted from the conducting a performance test using coatings used during the month using Method 25A of appendix A–7 to 40 CFR Equation 1A-alt of this section:

Where: (ii) In ASTM D6348–03 Annex A5 supplier and the results of Method 24 of A = Total mass of organic HAP in the (Analyte Spiking Technique), the 40 CFR part 60, appendix A–7, or an coatings used during the month, grams. percent (%) R must be determined for approved alternative method, the test Volc,i = Total volume of coating, i, used each target analyte (Equation A5.5 of method results will take precedence during the month, liters. ASTM D6348–03). In order for the test unless after consultation, a regulated Dc,j = Density of coating, i, grams coating per source could demonstrate to the liter of coatings. data to be acceptable for a compound, satisfaction of the enforcement agency Wc,i = Mass fraction of organic HAP in %R must be between 70 and 130 coating, i, grams organic HAP per gram percent. If the %R value does not meet that the formulation data were correct. coating. this criterion for a target compound, the * * * * * EFc,i = Organic HAP emission factor (three test data are not acceptable for that ■ 11. Section 63.4763 is amended by run average from performance testing, compound, and the test must be revising paragraph (h) to read as evaluated as proportion of mass organic repeated for that analyte following follows: HAP emitted to mass of organic HAP in the coatings used during the adjustment of the sampling and/or analytical procedure before the retest. § 63.4763 How do I demonstrate performance test). continuous compliance with the emission m = Number of different coatings used during The %R value for each compound must limitations? be reported in the test report, and all the month. (h) For existing sources until [DATE field measurements must be corrected (2) Calculate the organic HAP 180 DAYS AFTER DATE OF with the calculated %R value for that emission rate for the 12-month PUBLICATION OF FINAL RULE IN compound using the following equation: compliance period, grams organic HAP THE FEDERAL REGISTER], consistent Reported Result = (Measured per liter coating solids used, using with §§ 63.6(e) and 63.7(e)(1), Concentration in the Stack × 100)/%R. Equation 3 of this section. deviations that occur during a period of ■ (3) The organic HAP emission rate for 10. Section 63.4761 is amended by SSM of the emission capture system, the initial 12-month compliance period, revising paragraph (j)(3) to read as add-on control device, or coating calculated using Equation 3 of this follows: operation that may affect emission section, must be less than or equal to the § 63.4761 How do I demonstrate initial capture or control device efficiency are applicable emission limit in § 63.4690. compliance? not violations if you demonstrate to the You must keep all records as required * * * * * Administrator’s satisfaction that you by §§ 63.4730 and 63.4731. As part of were operating in accordance with the Notification of Compliance Status (j) * * * (3) Determine the mass fraction of § 63.6(e)(1). The Administrator will required by § 63.4710, you must identify determine whether deviations that occur the coating operation(s) for which you volatile organic matter for each coating, thinner, and cleaning material used in during a period you identify as an SSM used the emission rate without add-on are violations, according to the controls option and submit a statement the coating operation controlled by the solvent recovery system during the provisions in § 63.6(e). that the coating operation(s) was (were) ■ 12. Section 63.4764 is amended by month, grams volatile organic matter per in compliance with the emission revising paragraphs (a)(1) and (2) to read gram coating. You may determine the limitations during the initial as follows: compliance period because the organic volatile organic matter mass fraction HAP emission rate was less than or using Method 24 of 40 CFR part 60, § 63.4764 What are the general equal to the applicable emission limit in appendix A–7, one of the voluntary requirements for performance tests? § 63.4690, determined according to this consensus standards specified in (a) * * * section. § 63.4741(a)(2)(i) through (v) (1) Representative coating operation (4) If ASTM D6348–03 is used, the (incorporated by reference, see § 63.14), operating conditions. You must conduct conditions specified in paragraphs or an EPA approved alternative method, the performance test under (i)(4)(i) and (ii) must be met. or you may use information provided by representative operating conditions for (i) Test plan preparation and the manufacturer or supplier of the the coating operation. Operations during implementation in the Annexes to coating. In the event of any periods of startup, shutdown, and ASTM D6348–03, sections A1 through inconsistency between information nonoperation do not constitute A8 are mandatory. provided by the manufacturer or representative conditions. You may not

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conduct performance tests during (a) * * * device is an oxidizer, and you expect periods of malfunction. You must (1) Use Method 1 or 1A of appendix the total gaseous organic concentration record the process information that is A–1 to 40 CFR part 60, as appropriate, as carbon to be more than 50 parts per necessary to document operating to select sampling sites and velocity million (ppm) at the control device conditions during the test and explain traverse points. outlet. why the conditions represent normal (2) Use Method 2, 2A, 2C, 2D, or 2F (2) Use Method 25A of appendix A– operation. Upon request, you shall make of appendix A–1 to 40 CFR part 60, or 7 to 40 CFR part 60 if the add-on control available to the Administrator such Method 2G of appendix A–2 to 40 CFR device is an oxidizer, and you expect records as may be necessary to part 60, as appropriate, to measure gas the total gaseous organic concentration determine the conditions of volumetric flow rate. as carbon to be 50 ppm or less at the performance tests. (3) Use Method 3, 3A, or 3B of control device outlet. appendix A–2 to 40 CFR part 60, as (2) Representative emission capture (3) Use Method 25A of appendix A– appropriate, for gas analysis to system and add-on control device 7 to 40 CFR part 60 if the add-on control determine dry molecular weight. You operating conditions. You must conduct device is not an oxidizer. the performance test when the emission may also use as an alternative to Method 3B, the manual method for measuring (4) If Method 25A is used, and if capture system and add-on control formaldehyde is a major organic HAP device are operating at a representative the oxygen, carbon dioxide, and carbon monoxide content of exhaust gas in component of the surface coating flow rate, and the add-on control device exhaust stream, use Method 320 of is operating at a representative inlet ANSI/ASME PTC 19.10–1981, ‘‘Flue and Exhaust Gas Analyses [Part 10, appendix A to 40 CFR part 63 or ASTM concentration. Representative D6348–03 (incorporated by reference in conditions exclude periods of startup Instruments and Apparatus]’’ (incorporated by reference, see § 63.14). § 63.14) to determine formaldehyde and shutdown. You may not conduct concentration. performance tests during periods of (4) Use Method 4 of appendix A–3 to (5) In addition to Method 25 or 25A, malfunction. You must record 40 CFR part 60 to determine stack gas use Method 326 of appendix A to 40 information that is necessary to moisture. CFR part 63 if isocyanate is a major document emission capture system and * * * * * organic HAP component of the surface add-on control device operating (b) Measure total gaseous organic coating exhaust stream. conditions during the test and explain mass emissions as carbon at the inlet why the conditions represent normal and outlet of the add-on control device * * * * * operation. simultaneously, using Method 25 or (d) For each test run, determine the * * * * * 25A of appendix A–7 to 40 CFR part 60, total gaseous organic emissions mass ■ 13. Section 63.4766 is amended by: and Method 320 or 326 of appendix A flow rates for the inlet and the outlet of ■ a. Revising paragraphs (a)(1) through to 40 CFR part 63, as specified in the add-on control device, using (4) and (b); paragraphs (b)(1) through (5) of this Equation 1 of this section. If there is ■ b. Adding paragraphs (b)(4) and (5); section. The voluntary consensus more than one inlet or outlet to the add- and standard ASTM D6348–03 (incorporated on control device, you must calculate ■ c. Revising paragraphs (d) and (f). by reference in § 63.14) may be used as the total gaseous organic mass flow rate The revisions and additions read as an alternative to using Method 320 if the using Equation 1 of this section for each follows: conditions specified in inlet and each outlet and then total all § 63.4751(i)(4)(A) and (B) are met. You of the inlet emissions and total all of the § 63.4766 How do I determine the add-on must use the same method for both the outlet emissions. The mass emission control device emission destruction or inlet and outlet measurements. rates for formaldehyde and individual removal efficiency? (1) Use Method 25 of appendix A–7 isocyanate must be determined * * * * * to 40 CFR part 60 if the add-on control separately.

Where: control device as the average of the subpart, or an owner or operator of such Mf = Total gaseous organic emissions mass efficiencies determined in the three test a source: flow rate, grams per hour (h). runs and calculated in Equation 2 of this * * * * * MW = Molecular weight of analyte of interest section. Destruction and removal (3) For existing sources until [DATE (12 for Method 25 and 25A results). efficiency must be determined 180 DAYS AFTER DATE OF Cc = Concentration of organic compounds in the vent gas (as carbon if determined by independently for formaldehyde and PUBLICATION OF FINAL RULE IN Method 25 or Method 25A), parts per isocyanates. THE FEDERAL REGISTER], if your million by volume (ppmv), dry basis. ■ 14. Section 63.4781 is amended by affected source fails to meet any Qsd = Volumetric flow rate of gases entering emission limit, or operating limit, or or exiting the add-on control device, as revising paragraph (3) under the definition of ‘‘deviation’’ and revising work practice standard in this subpart determined by Method 2, 2A, 2C, 2D, 2F, during SSM, regardless of whether or the definition of ‘‘tileboard’’ to read as or 2G, dry standard cubic meters/hour not such failure is permitted by this (dscm/h). follows: 41.6 = Conversion factor for molar volume, subpart. gram-moles per cubic meter (mol/m3) (@ § 63.4781 What definitions apply to this * * * * * 293 Kelvin (K) and 760 millimeters of subpart? Tileboard means hardboard that meets mercury (mmHg)). * * * * * the specifications for Class I given by the standard ANSI A135.4–2012 * * * * * Deviation means any instance in (f) Determine the emission destruction (incorporated by reference, see § 63.14) which an affected source subject to this or removal efficiency of the add-on as approved by the American National

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Standards Institute. The standard edge straightness, and moisture content ■ 15. Table 4 to subpart QQQQ is specifies requirements and test methods for five classes of hardboard. Tileboard amended to read as follows: for water absorption, thickness swelling, is also known as Class I hardboard or You must comply with the applicable modulus of rupture, tensile strength, tempered hardboard. General Provisions requirements surface finish, dimensions, squareness, according to the following table:

TABLE 4 TO SUBPART QQQQ OF PART 63—APPLICABILITY OF GENERAL PROVISIONS TO SUBPART QQQQ OF PART 63

Applicable to Citation Subject subpart QQQQ Explanation

§ 63.1(a)(1)–(14) ...... General Applicability ...... Yes. § 63.1(b)(1)–(3) ...... Initial Applicability Determination ...... Yes ...... Applicability to subpart QQQQ is also specified in § 63.4681. § 63.1(c)(1) ...... Applicability After Standard Established ...... Yes. § 63.1(c)(2) ...... Applicability of Permit Program for Area Sources No ...... Area sources are not subject to subpart QQQQ. § 63.1(c)(3) ...... [Reserved] ...... No. § 63.1(c)(4)–(5) ...... Extensions and Notifications ...... Yes. § 63.1(d) ...... [Reserved] ...... No. § 63.1(e) ...... Applicability of Permit Program Before Relevant Yes. Standard is Set. § 63.2 ...... Definitions ...... Yes ...... Additional definitions are specified in § 63.4781. § 63.3(a)–(c) ...... Units and Abbreviations ...... Yes. § 63.4(a)(1)–(5) ...... Prohibited Activities ...... Yes. § 63.4(b)–(c) ...... Circumvention/Severability ...... Yes. § 63.5(a) ...... Construction/Reconstruction ...... Yes. § 63.5(b)(1)–(6) ...... Requirements for Existing, Newly Constructed, Yes. and Reconstructed Sources. § 63.5(c) ...... [Reserved] ...... No. § 63.5(d) ...... Application for Approval of Construction/Recon- Yes. struction. § 63.5(e) ...... Approval of Construction/Reconstruction ...... Yes. § 63.5(f) ...... Approval of Construction/Reconstruction Based Yes. on Prior State Review. § 63.6(a) ...... Compliance With Standards and Maintenance Re- Yes. quirements—Applicability. § 63.6(b)(1)–(7) ...... Compliance Dates for New and Reconstructed Yes ...... § 63.4683 specifies compliance dates. Sources. § 63.6(c)(1)–(5) ...... Compliance Dates for Existing Sources ...... Yes ...... § 63.4683 specifies compliance dates. § 63.6(d) ...... [Reserved] ...... No. § 63.6(e)(1)(i) ...... General Duty to Minimize Emissions ...... No ...... See § 63.4700(b) for general duty requirement. § 63.6(e)(1)(ii) ...... Requirement to Correct Malfunctions ASAP ...... No. § 63.6(e)(1)(iii) ...... Operation and Maintenance Requirements En- Yes. forceable Independent of Emissions Limitations. § 63.6(e)(2) ...... [Reserved] ...... No. § 63.6(e)(3) ...... SSMP ...... No. § 63.6(f)(1) ...... Compliance Except During SSM ...... No. § 63.6(f)(2)–(3) ...... Methods for Determining Compliance ...... Yes. § 63.6(g)(1)–(3) ...... Use of an Alternative Standard ...... Yes. § 63.6(h) ...... Compliance with Opacity/Visible Emissions Stand- No ...... Subpart QQQQ does not establish opacity stand- ards. ards and does not require continuous opacity monitoring systems (COMS). § 63.6(i)(1)–(16) ...... Extension of Compliance ...... Yes. § 63.6(j) ...... Presidential Compliance Exemption ...... Yes. § 63.7(a)(1) ...... Performance Test Requirements—Applicability .... Yes ...... Applies to all affected sources. Additional require- ments for performance testing are specified in §§ 63.4764, 63.4765, and 63.4766. § 63.7(a)(2) ...... Performance Test Requirements—Dates ...... Yes ...... Applies only to performance tests for capture sys- tem and control device efficiency at sources using these to comply with the standard. § 63.4760 specifies the schedule for perform- ance test requirements that are earlier than those specified in § 63.7(a)(2). § 63.7(a)(3) ...... Performance Tests Required By the Administrator Yes. § 63.7(a)(4) ...... Notification of Delay in Performance Testing Due Yes. to Force Majeure. § 63.7(b)–(e) ...... Performance Test Requirements—Notification, Yes ...... Applies only to performance tests for capture sys- Quality Assurance, Facilities Necessary for tem and add-on control device efficiency at Safe Testing, Conditions During Test. sources using these to comply with the stand- ard. § 63.7(e)(1) ...... Performance Testing ...... Yes. § 63.7(f) ...... Performance Test Requirements—Use of Alter- Yes ...... Applies to all test methods except those used to native Test Method. determine capture system efficiency.

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TABLE 4 TO SUBPART QQQQ OF PART 63—APPLICABILITY OF GENERAL PROVISIONS TO SUBPART QQQQ OF PART 63— Continued

Applicable to Citation Subject subpart QQQQ Explanation

§ 63.7(g)–(h) ...... Performance Test Requirements—Data Analysis, Yes ...... Applies only to performance tests for capture sys- Recordkeeping, Reporting, Waiver of Test. tem and add-on control device efficiency at sources using these to comply with the stand- ard. § 63.8(a)(1)–(2) ...... Monitoring Requirements—Applicability ...... Yes ...... Applies only to monitoring of capture system and add-on control device efficiency at sources using these to comply with the standard. Addi- tional requirements for monitoring are specified in § 63.4768. § 63.8(a)(3) ...... [Reserved] ...... No. § 63.8(a)(4) ...... Additional Monitoring Requirements ...... No ...... Subpart QQQQ does not have monitoring require- ments for flares. § 63.8(b) ...... Conduct of Monitoring ...... Yes. § 63.8(c)(1) ...... Continuous Monitoring System (CMS) Operation Yes ...... Applies only to monitoring of capture system and and Maintenance. add-on control device efficiency at sources using these to comply with the standard. Addi- tional requirements for CMS operations and maintenance are specified in § 63.4768. § 63.8(c)(1)(i) ...... General Duty to Minimize Emissions and CMS No. Operation. § 63.8(c)(1)(ii) ...... Operation and Maintenance of CMS ...... Yes. § 63.8(c)(1)(iii) ...... Requirement to Develop SSM Plan for CMS ...... No. § 63.8(c)(2)–(3) ...... Monitoring System Installation ...... Yes. § 63.8(c)(4) ...... CMSs ...... No ...... § 63.4768 specifies the requirements for the oper- ation of CMS for capture systems and add-on control devices at sources using these to com- ply. § 63.8(c)(5) ...... COMS ...... No ...... Subpart QQQQ does not have opacity for visible emission standards. § 63.8(c)(6) ...... CMS Requirements ...... Yes ...... § 63.4768 specifies the requirements for moni- toring systems for capture systems and add-on control devices at sources using these to com- ply. § 63.8(c)(7) ...... CMS Out-of-Control Periods ...... Yes. § 63.8(c)(8) ...... CMS Out-of-Control Periods Reporting ...... No ...... § 63.4720 requires reporting of CMS out-of-control periods. § 63.8(d)–(e) ...... Quality Control Program and CMS Performance No ...... Subpart QQQQ does not require the use of con- Evaluation. tinuous emissions monitoring systems. § 63.8(f)(1)–(5) ...... Use of an Alternative Monitoring Method ...... Yes. § 63.8(f)(6) ...... Alternative to Relative Accuracy Test ...... No ...... Subpart QQQQ does not require the use of con- tinuous emissions monitoring systems. § 63.8(g)(1)–(5) ...... Data Reduction ...... No ...... §§ 63.4767 and 63.4768 specify monitoring data reduction. § 63.9(a)–(d) ...... Notification Requirements ...... Yes. § 63.9(e) ...... Notification of Performance Test ...... Yes ...... Applies only to capture system and add-on control device performance tests at sources using these to comply with the standard. § 63.9(f) ...... Notification of Visible Emissions/Opacity Test ...... No ...... Subpart QQQQ does not have opacity or visible emission standards. § 63.9(g)(1)–(3) ...... Additional Notifications When Using CMS ...... No ...... Subpart QQQQ does not require the use of con- tinuous emissions monitoring systems. § 63.9(h) ...... Notification of Compliance Status ...... Yes ...... § 63.4710 specifies the dates for submitting the notification of compliance status. § 63.9(i) ...... Adjustment of Submittal Deadlines ...... Yes. § 63.9(j) ...... Change in Previous Information ...... Yes. § 63.10(a) ...... Recordkeeping/Reporting—Applicability and Gen- Yes. eral Information. § 63.10(b)(1) ...... General Recordkeeping Requirements...... Yes ...... Additional requirements are specified in §§ 63.4730 and 63.4731. § 63.10(b)(2)(i)–(ii) ..... Recordkeeping of Occurrence and Duration of No. Startups and Shutdowns. § 63.10(b)(2)(iii) ...... Recordkeeping Relevant to CMS ...... Yes. § 63.10(b)(2)(iv)–(v) ... Recordkeeping Relevant to SSM ...... No. § 63.10(b)(2)(vi)–(xi) .. Recordkeeping for CMS Malfunctions ...... Yes. § 63.10(b)(2)(xii) ...... Records ...... Yes. § 63.10(b)(2)(xiii) ...... No ...... Subpart QQQQ does not require the use of con- tinuous emissions monitoring systems. § 63.10(b)(2)(xiv) ...... Yes. § 63.10(b)(3) ...... Recordkeeping Requirements for Applicability De- Yes. terminations.

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TABLE 4 TO SUBPART QQQQ OF PART 63—APPLICABILITY OF GENERAL PROVISIONS TO SUBPART QQQQ OF PART 63— Continued

Applicable to Citation Subject subpart QQQQ Explanation

§ 63.10(c)(1)–(6) ...... Additional Recordkeeping Requirements for Yes. Sources with CMS. § 63.10(c)(7)–(8) ...... No ...... The same records are required in § 63.4720(a) (7). § 63.10(c)(9)–(14) ...... Yes. § 63.10(c)(15) ...... Use of SSM Plan ...... No. § 63.10(d)(1) ...... General Reporting Requirements ...... Yes ...... Additional requirements are specified in § 63.4720. § 63.10(d)(2) ...... Report of Performance Test Results ...... Yes ...... Additional requirements are specified in § 63.4720(b). § 63.10(d)(3) ...... Reporting Opacity or Visible Emissions Observa- No ...... Subpart QQQQ does not require opacity or visible tions. emissions observations. § 63.10(d)(4) ...... Progress Reports for Sources With Compliance Yes. Extensions. § 63.10(d)(5) ...... SSM Reports ...... No ...... Malfunctions shall be reported based on compli- ance option under § 63.4720(a)(5–7). § 63.10(e)(1)–(2) ...... Additional CMS Reports ...... No ...... Subpart QQQQ does not require the use of con- tinuous emissions monitoring systems. § 63.10(e)(3) ...... Excess Emissions/CMS Performance Reports ...... No ...... § 63.4720(b) specifies the contents of periodic compliance reports. § 63.10(e)(4) ...... COMS Data Reports ...... No ...... Subpart QQQQ does not specify requirements for opacity or COMS. § 63.10(f) ...... Recordkeeping/Reporting Waiver ...... Yes. § 63.11 ...... Control Device Requirements/Flares ...... No ...... Subpart QQQQ does not specify use of flares for compliance. § 63.12 ...... State Authority and Delegations ...... Yes. § 63.13 ...... Addresses ...... Yes. § 63.14 ...... Incorporation by Reference ...... Yes ...... Test Methods ANSI A135.4–2012, ANSI/ASME PTC 19.10–1981, Part 10, ASTM D1475–90, ASTM D1963–85, ASTM D2111–95 (2000), ASTM D2369–01, ASTM D2697–86 (Re- approved 1998), ASTM D4840–99, ASTM D6093–97 (Reapproved 2003), and ASTM D6348–03 (Reapproved 2010) (incorporated by reference, see § 63.14). § 63.15 ...... Availability of Information/Confidentiality ...... Yes. § 63.16 ...... Requirements for Performance Track Member Fa- Yes. cilities.

■ 16. Appendix A to Part 63 is amended associated with manufacturing Method 5 found in Appendices A–1, A– to add Method 326 to read as follows: processes. This method is not inclusive 2, and A–3 in Part 60 of this title. with respect to specifications (e.g., Method 326—Method for Determination 1.1 Analytes. This method is equipment and supplies) and sampling designed to determine the mass of Isocyanates in Stationary Source procedures essential to its performance. emission of isocyanates being emitted Emissions Some material is incorporated by from manufacturing processes. The 1.0 Scope and Application reference from other EPA methods. Therefore, to obtain reliable results, following is a table (Table 1–1) of the This method is applicable to the persons using this method should have isocyanates and the manufacturing collection and analysis of isocyanate a thorough knowledge of at least process at which the method has been compounds from the emissions Method 1, Method 2, Method 3, and evaluated:

TABLE 326–1—ANALYTES

Compound’s name CAS No. Detection limit Manufacturing process (ng/m3) a

2,4-Toluene Diisocyanate (TDI) ...... 584–84–9 106 Flexible Foam Production. 1,6-Hexamethylene Diisocyanate (HDI) ...... 822–06–0 396 Paint Spray Booth. Methylene Diphenyl Diisocyanate (MDI) ...... 101–68–8 112 Pressed Board Production. Methyl Isocyanate(MI) ...... 624–83–0 228 Not used in production. a Estimated detection limits are based on a sample volume of 1 m3 and a 10-ml sample extraction volume.

1.2 Applicability. Method 326 is a compliance with National Emission (NESHAP). Method 326 may also be method designed for determining Standards for Hazardous Air Pollutants specified by New Source Performance

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Standards (NSPS), State Implementation three times with acetonitrile. modified Greenburg-Smith design, Plans (SIPs), and operating permits that Volumetric glassware should not be modified by replacing the tip with a 1.3- require measurement of isocyanates in heated to 400 °C. Instead, after washing cm (1/2-in.) I.D. glass tube extending stationary source emissions, to and rinsing, volumetric glassware may about 1.3 cm (1/2 in.) from the bottom determine compliance with an be rinsed with acetonitrile followed by of the outer cylinder. A water-jacketed applicable emission standard or limit. methylene chloride and allowed to dry condenser is placed between the outlet 1.3 Data Quality Objectives (DQO). in air. of the first impinger and the inlet to the The principal objective is to ensure the 4.3.2 The use of high purity reagents second impinger to reduce the accuracy of the data at the actual and solvents helps to reduce evaporation of toluene from the first emissions levels and in the actual interference problems in sample impinger. emissions matrix encountered. To meet analysis. 6.1.5 Moisture Measurement. For the purpose of calculating volumetric flow this objective, method performance tests 5.0 Safety are required and NIST-traceable rate and isokinetic sampling, you must calibration standards must be used. 5.1 Organizations performing this also collect either Method 4 in method are responsible for maintaining Appendix A–3 to this part or other 2.0 Summary of Method a current awareness file of Occupational moisture measurement methods 2.1 Gaseous and/or aerosol Safety and Health Administration approved by the Administrator isocyanates are withdrawn from an (OSHA) regulations regarding safe concurrent with each Method 326 test emission source at an isokinetic handling of the chemicals specified in run. sampling rate and are collected in a this method. A reference file of material 6.2 Sample Recovery multicomponent sampling train. The safety data sheets should also be made 6.2.1 Probe and Nozzle Brushes; primary components of the train include available to all personnel involved in Polytetrafluoroethylene (PTFE) bristle a heated probe, three impingers performing the method. Additional brushes with stainless steel wire or containing derivatizing reagent in references to laboratory safety are PTFE handles are required. The probe toluene, an empty impinger, an available. brush shall have extensions constructed impinger containing charcoal, and an 6.0 Equipment and Supplies of stainless steel, PTFE, or inert material impinger containing silica gel. at least as long as the probe. The 2.2 The liquid impinger contents are 6.1 Sample Collection. A schematic brushes shall be properly sized and recovered, concentrated to dryness of the sampling train used in this shaped to brush out the probe liner and under vacuum, brought to volume with method is shown in Figure 207–1. This the probe nozzle. acetonitrile (ACN) and analyzed with a sampling train configuration is adapted 6.2.2 Wash Bottles. Three. PTFE or high pressure liquid chromatograph from Method 5 procedures, and, as glass wash bottles are recommended; (HPLC). such, most of the required equipment is polyethylene wash bottles must not be identical to that used in Method 5 used because organic contaminants may 3.0 Definitions [Reserved] determinations. The only new be extracted by exposure to organic 4.0 Interferences component required is a condenser. solvents used for sample recovery. 6.1.1 Probe Nozzle. Borosilicate or 6.2.3 Glass Sample Storage 4.1 The greatest potential for quartz glass; constructed and calibrated Containers. Chemically resistant, interference comes from an impurity in according to Method 5, sections 6.1.1.1 borosilicate amber glass bottles, 500-mL the derivatizing reagent, 1-(2- and 10.1, and coupled to the probe liner or 1,000-mL. Bottles should be tinted to pyridyl)piperazine (1,2-PP). This using a Teflon union; a stainless steel prevent the action of light on the compound may interfere with the nut is recommended for this union. sample. Screw-cap liners shall be either resolution of MI from the peak When the stack temperature exceeds PTFE or constructed to be leak-free and attributed to unreacted 1,2-PP. ° ° 210 C (410 F), a one-piece glass resistant to chemical attack by organic 4.2 Other interferences that could nozzle/liner assembly must be used. recovery solvents. Narrow-mouth glass result in positive or negative bias are (1) 6.1.2 Probe Liner. Same as Method bottles have been found to leak less alcohols that could compete with the 5, section 6.1.1.2, except metal liners frequently. 1,2-PP for reaction with an isocyanate shall not be used. Water-cooling of the 6.2.4 Graduated Cylinder. To and (2) other compounds that may co- stainless steel sheath is recommended at measure impinger contents to the ° ° elute with one or more of the temperatures exceeding 500 C (932 F). nearest 1 ml or 1 g. Graduated cylinders derivatized isocyanates. Teflon may be used in limited shall have subdivisions not >2 mL. 4.3 Method interferences may be applications where the minimum stack 6.2.5 Plastic Storage Containers. caused by contaminants in solvents, temperature exceeds 120 °C (250 °F) but Screw-cap polypropylene or reagents, glassware, and other sample never exceeds the temperature where polyethylene containers to store silica processing hardware. All these materials Teflon is estimated to become unstable gel and charcoal. must be routinely shown to be free from [approximately 210 °C (410 °F)]. 6.2.6 Funnel and Rubber Policeman. interferences under conditions of the 6.1.3 Pitot Tube, Differential To aid in transfer of silica gel or analysis by preparing and analyzing Pressure Gauge, Filter Heating System, charcoal to container (not necessary if laboratory method (or reagent) blanks. Metering System, Barometer, Gas silica gel is weighed in field). 4.3.1 Glassware must be cleaned Density Determination Equipment. 6.2.7 Funnels. Glass, to aid in thoroughly before using. The glassware Same as Method 5, sections 6.1.1.3, sample recovery. should be washed with laboratory 6.1.1.4, 6.1.1.6, 6.1.1.9, 6.1.2, and 6.1.3. 6.3 Sample Preparation and detergent in hot water followed by 6.1.4 Impinger Train. Glass Analysis. rinsing with tap water and distilled impingers are connected in series with The following items are required for water. The glassware may be dried by leak-free ground-glass joints following sample analysis. baking in a glassware oven at 400 °C for immediately after the heated probe. The 6.3.1 Rotary Evaporator. Buchii at least one hour. After the glassware first impinger shall be of the Greenburg- Model EL–130 or equivalent. has cooled, it should be rinsed three Smith design with the standard tip. The 6.3.2 1000 ml Round Bottom Flask times with methylene chloride and remaining five impingers shall be of the for use with a rotary evaporator.

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6.3.3 Separatory Funnel. 500-ml or cleanup. Note: Organic solvents stored Figure 326–1. During assembly, do not larger, with PTFE stopcock. in metal containers may have a high use any silicone grease on ground-glass 6.3.4 Glass Funnel. Short-stemmed residue blank and should not be used. joints. or equivalent. Sometimes suppliers transfer solvents Note: During preparation and assembly of 6.3.5 Vials. 15-ml capacity with from metal to glass bottles; thus blanks the sampling train, keep all openings where PTFE lined caps. shall be run before field use and only contamination can occur covered with PTFE 6.3.6 Class A Volumetric Flasks. 10- solvents with a low blank value should film or aluminum foil until just before ml for bringing samples to volume after be used. assembly or until sampling is about to begin. concentration. 7.3 Analysis Reagents. Reagent grade 6.3.7 Filter Paper. Qualitative grade 8.1.3 Leak-Check Procedures. chemicals should be used in all tests. Follow the leak-check procedures given or equivalent. All reagents shall conform to the 6.3.8 Buchner Funnel. Porcelain in Method 5, sections 8.4.2 (Pretest specifications of the Committee on Leak-Check), 8.4.3 (Leak-Checks During with 100 mm ID or equivalent. Analytical Reagents of the American 6.3.9 Erlenmeyer Flask. 500-ml with the Sample Run), and 8.4.4 (Post-Test Chemical Society, where such side arm and vacuum source. Leak-Check), with the exception that the 6.3.10 HPLC with at least a binary specifications are available. pre-test leak-check is mandatory. pumping system capable of a 7.3.1 Toluene, C6H5CH3. HPLC 8.1.4 Sampling Train Operation. programmed gradient. Grade or equivalent. Follow the general procedures given in 6.3.11 Column Systems Column 7.3.2 Acetonitrile, CH3CN (ACN). Method 5, section 8.5. Turn on the systems used to measure isocyanates HPLC Grade or equivalent. condenser coil coolant recirculating must be capable of achieving separation 7.3.3 Methylene Chloride, CH2Cl2. pump and monitor the gas entry of the target compounds from the HPLC Grade or equivalent. temperature. Ensure proper gas entry nearest eluting compound or 7.3.4 Hexane, C6H14. HPLC Grade or temperature before proceeding and interferents with no more than 10 equivalent. again before any sampling is initiated. It percent peak overlap. 7.3.5 Water, H2O. HPLC Grade or is important that the gas entry 6.3.12 Detector. UV detector at 254 equivalent. temperature not exceed 50° C (122 °F), nm. A fluoresence detector (FD) with an 7.3.6 Ammonium Acetate, thus reducing the loss of toluene from excitation of 240 nm and an emission at CH3CO2NH4. the first impinger. For each run, record 370 nm may be also used to allow the 7.3.7 Acetic Acid (glacial), the data required on a data sheet such detection of low concentrations of CH3CO2H. as the one shown in Method 5, Figure isocyanates in samples. 7.3.8 1-(2-Pyridyl)piperazine, (1,2- ≥ 5–3. 6.3.13 Data system for measuring PP), 99.5% or equivalent. 8.2 Sample Recovery. Allow the peak areas and retention times. 7.3.9 Absorption Solution. Prepare a probe to cool. When the probe can be solution of 1-(2-pyridyl)piperazine in 7.0 Reagents and Standards handled safely, wipe off all external toluene at a concentration of 40 mg/300 particulate matter near the tip of the 7.1 Sample Collection Reagents. ml. This solution is used for method probe nozzle and place a cap over the 7.1.1 Charcoal. Activated, 6–16 blanks and method spikes. tip to prevent losing or gaining mesh. Used to absorb toluene vapors 7.3.10 Ammonium Acetate Buffer particulate matter. Do not cap the probe and prevent them from entering the Solution (AAB). Prepare a solution of tip tightly while the sampling train is metering device. Use once with each ammonium acetate in water at a cooling down because this will create a train and discard. concentration of 0.1 M by transferring 7.1.2 Silica Gel and Crushed Ice. vacuum in the train. Before moving the 7.705 g of ammonium acetate to a 1,000 sample train to the cleanup site, remove Same as Method 5, sections 7.1.2 and ml volumetric flask and diluting to 7.1.4 respectively. the probe from the sample train and cap volume with HPLC Grade water. Adjust the opening to the probe, being careful 7.1.3 Impinger Solution. The pH to 6.2 with glacial acetic acid. impinger solution is prepared by mixing not to lose any condensate that might be a known amount of 1-(2-pyridyl) 8.0 Sample Collection, Storage and present. Cap the impingers and transfer piperazine (purity 99.5+ %) in toluene Transport the probe and the impinger/condenser (HPLC grade or equivalent). The actual assembly to the cleanup area. This area concentration of 1,2-PP should be Note: Because of the complexity of this should be clean and protected from the approximately four times the amount method, field personnel should be trained in weather to reduce sample and experienced with the test procedures in contamination or loss. Inspect the train needed to ensure that the capacity of the order to obtain reliable results. derivatizing solution is not exceeded. prior to and during disassembly and This amount shall be calculated from 8.1 Sampling record any abnormal conditions. It is the stoichiometric relationship between 8.1.1 Preliminary Field not necessary to measure the volume of 1,2-PP and the isocyanate of interest and Determinations. Same as Method 5, the impingers for the purpose of preliminary information about the section 8.2. moisture determination as the method is concentration of the isocyanate in the 8.1.2 Preparation of Sampling Train. not validated for moisture stack emissions. A concentration of 130 Follow the general procedure given in determination. Treat samples as follows: mg/ml of 1,2-PP in toluene can be used Method 5, section 8.3.1, except for the 8.2.1 Container No. 1, Probe and as a reference point. This solution shall following variations: Place 300 ml of the Impinger Numbers 1 and 2. Rinse and be prepared, stored in a refrigerated area impinger absorbing solution in the first brush the probe/nozzle first with away from light, and used within ten impinger and 200 ml each in the second toluene twice and then twice again with days of preparation. and third impingers. The fourth acetonitrile and place the wash into a 7.2 Sample Recovery Reagents. impinger shall remain empty. The fifth glass container labeled with the test run 7.2.1 Toluene. HPLC grade is and sixth impingers shall have 400 g of identification and ‘‘Container No. 1.’’ required for sample recovery and charcoal and 200–300 g of silica gel, When using these solvents ensure that cleanup (see Note to 7.2.2 below). respectively. Alternatively, the charcoal proper ventilation is available. 7.2.2 Acetonitrile. HPLC grade is and silica gel may be combined in the Quantitatively transfer the liquid from required for sample recovery and fifth impinger. Set-up the train as in the first two impingers and the

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condenser into Container No. 1. Rinse shall be heated during and the train will ‘‘Standard Guide for Sampling Chain-of- the impingers and all connecting be recovered as if it were an actual test Custody Procedures’’ (incorporated by glassware twice with toluene and then sample. No gaseous sample will be reference, see § 63.14) shall be followed twice again with acetonitrile and passed through the sampling train. Field for all samples (including field samples transfer the rinses into Container No. 1. blanks are recovered in the same and blanks). After all components have been manner as described in sections 8.2.1 9.0 Quality Control collected in the container, seal the and 8.2.2 and must be submitted with container, and mark the liquid level on the field samples collected at each 9.1 Sampling. Sampling Operations. the bottle. sampling site. The sampling quality control 8.2.2 Container No. 2, Impingers 3 8.2.5 Field Train Spike. To procedures and acceptance criteria are and 4. Quantitatively transfer the liquid demonstrate the effectiveness of the listed in Table 326–2 below; see also from each impinger into a glass sampling train, field handling, and section 9.0 of Method 5. container labeled with the test run recovery procedures you must prepare a 9.2 Analysis. The analytical quality identification and ‘‘Container No. 2.’’ full sampling train to serve as a field control procedures required for this Rinse each impinger and all connecting train spike just as it would be prepared method includes the analysis of the glassware twice with toluene and twice for sampling. The field spike is field train proof blank, field train spike, again with acetonitrile and transfer the performed in the same manner as the and reagent and method blanks. rinses into Container No. 2. After all field train proof blank with the Analytical quality control procedures components have been collected in the additional step of adding the Field and acceptance criteria are listed in container, seal the container, and mark Spike Standard to the first impinger Table 326–3 below. the liquid level on the bottle. after the initial leak check. The train 9.2.1 Check for Breakthrough. will be recovered as if it were an actual Note: The contents of the fifth and sixth Recover and determine the isocyanate(s) impinger (silica gel) can be discarded. test sample. No gaseous sample will be concentration of the last two impingers passed through the sampling train. Field 8.2.3 Container No. 3, Reagent separately from the first two impingers. train spikes are recovered in the same Blank. Save a portion of both washing 9.2.2 Field Train Proof Blank. Field solutions (toluene/acetonitrile) used for manner as described in sections 8.2.1 and 8.2.2 and must be submitted with blanks must be submitted with the the cleanup as a blank. Transfer 200 ml samples collected at each sampling site. of each solution directly from the wash the samples collected for each test bottle being used and combine in a glass program. 9.2.3 Reagent Blank and Field Train sample container with the test 8.3 Sample Transport Procedures. Spike. At least one reagent blank and a identification and ‘‘Container No. 3.’’ Containers must remain in an upright field train spike must be submitted with Seal the container, and mark the liquid position at all times during shipment. the samples collected for each test level on the bottle and add the proper Samples must also be stored at <4°C program. label. between the time of sampling and 9.2.4 Determination of Method 8.2.4 Field Train Proof Blanks. To concentration. Each sample should be Detection Limit. Based on your demonstrate the cleanliness of sampling extracted and concentrated within 30 instrument’s sensitivity and linearity, train glassware, you must prepare a full days after collection and analyzed determine the calibration concentrations sampling train to serve as a field train within 30 days after extraction. The or masses that make up a representative proof blank just as it would be prepared extracted sample must be stored at 4°C. low level calibration range. The MDL for sampling. At a minimum, one 8.4 Sample Custody. Proper must be determined at least annually for complete sampling train will be procedures and documentation for the analytical system using an MDL assembled in the field staging area, sample chain of custody are critical to study such as that found in section 15.0 taken to the sampling area, and leak- ensuring data integrity. The chain of to Method 301 of appendix A to part 63 checked. The probe of the blank train custody procedures in ASTM D4840–99 of this chapter.

TABLE 326–2—SAMPLING QUALITY ASSURANCE AND QUALITY CONTROL

QA/QC Criteria Acceptance criteria Frequency Consequence if not met

Sampling Equipment Leak Checks ≤0.00057 m3/min (0.020 cfm) or Prior to, during (optional) and at Prior to: Repair and repeat cali- 4% of sampling rate, whichever the completion to sampling. bration. is less. During/Completion: None, testing should be considered invalid. Dry Gas Meter Calibration—Pre- within ±2% of average factor (indi- Pre-test ...... Repeat calibration point Test (individual correction fac- vidual). tor—Yi). Dry Gas Meter Calibration—Pre- 1.00 ± 1% ...... Pre-test ...... Adjust the dry gas meter and re- Test (average correction factor— calibrate. Yc). Dry Gas Meter Calibration—Post- Average dry gas meter calibration Each Test ...... Adjust sample volumes using the test. factor agrees with ±5% Yc. factor that gives the smallest volume. Temperature sensor calibration ..... Absolute temperature measures Prior to initial use and before Recalibrate; sensor may not be by sensor within ±1.5% of a ref- each test thereafter. used until specification is met. erence sensor. Barometer calibration...... Absolute pressure measured by Prior to initial use and before Recalibrate; instrument may not instrument within ±10 mm Hg of each test thereafter. be used until specification is reading with a mercury barom- met. eter or NIST traceable barom- eter.

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TABLE 326–3—ANALYTICAL QUALITY ASSURANCE AND QUALITY CONTROL

QA/QC Criteria Acceptance criteria Frequency Consequence if not met

Calibration—Method Blanks ...... <5% level of expected analyte ..... Each analytical method blank ...... Locate source of contamination; reanalyze. Calibration—Calibration Points ...... At least six calibration point brack- Each analytical batch ...... Incorporate additional calibration eting the expected range of points to meet criteria. analysis. Calibration—Linearity ...... Correlation coefficient >0.995 ...... Each analytical batch ...... Verify integration, reintegrate. If necessary, recalibrate. Calibration—secondary standard Within ±10% of true value ...... After each calibration ...... Repeat secondary standard verification. verification, recalibrate if nec- essary. Calibration—continual calibration Within ±10% of true value ...... Daily and after every ten samples Invalidate previous ten sample verification. analysis, recalibrate and repeat calibration, reanalyze samples until successful. Sample Analysis ...... Within the valid calibration range Each sample ...... Invalidate the sample if greater than the calibration range and dilute the sample so that it is within the calibration range. Ap- propriately flag any value below the calibration range. Replicate Samples ...... Within ±10% of RPD ...... Each sample ...... Evaluate integrations and repeat sample analysis as necessary. Field Train Proof Blank ...... ≤10% level of expected analyte ... Each test program ...... Evaluate source of contamination. Field Train Spike ...... Within ±30% of true value ...... Each test program ...... Evaluate performance of the method and consider invali- dating results. Breakthrough ...... Final two impingers Mass col- Each test run ...... Invalidate test run. lected is >5% of the total mass or >20% of the total mass when the measured results are 20% of the applicable standard. Al- ternatively, there is no break- through requirement when the measured results are 10% of the applicable standard.

10.0 Calibration and Standardization TABLE 326–4—EXAMPLE RETENTION twice. After the third filtration, dry the TIMES crystals at 50 °C and transfer to bottles Note: Maintain a laboratory log of all for storage. The crystals are stable for at calibrations. Retention Times least 21 months when stored at room temperature in a closed container. 10.1 Probe Nozzle, Pitot Tube Retention 10.3.2 MI. Prepare a 200 mg/ml stock Assembly, Dry Gas Metering System, Compound time (minutes) solution of methyl isocyanate-urea, Probe Heater, Temperature Sensors, transfer 60 mg of 1,2-PP to a 100-ml Leak-Check of Metering System, and MI ...... 10.0 volumetric flask containing 50 ml of Barometer. Same as Method 5, sections 1,6-HDI ...... 19.9 MeCl2. Carefully transfer 20 mg of 10.1, 10.2, 10.3, 10.4, 10.5, 8.4.1, and 2,4-TDI ...... 27.1 methyl isocyanate to the volumetric 10.6, respectively. MDI ...... 27.3 flask and shake for 2 minutes. Dilute the 10.2 High Performance Liquid solution to volume with MeCl2 and 10.3 Preparation of Isocyanate transfer to a bottle for storage. Methyl Chromatograph. Establish the retention Derivatives. times for the isocyanates of interest; isocyanate does not produce a solid 10.3.1 HDI, TDI, MDI. Dissolve 500 derivative and standards must be retention times will depend on the mg of each isocyanate in individual 100 prepared from this stock solution. chromatographic conditions. The ml aliquots of methylene chloride 10.4 Preparation of calibration retention times provided in Table 10–1 (MeCl2), except MDI which requires 250 standards. Prepare a 100 mg/ml stock are provided as a guide to relative ml of MeCl2. Transfer a 5-ml aliquot of solution of the isocyanates of interest retention times when using a C18, 250 1,2-PP (see section 7.3.8) to each from the individual isocyanate-urea mm × 4.6 mm ID, 5mm particle size solution, stir and allow to stand derivative as prepared in sections 10.3.1 column, a 2 ml/min flow rate of a 1:9 overnight at room temperature. Transfer and 10.3.2. This is accomplished by to 6:4 Acetonitrile/Ammonium Acetate 150 ml aliquots of hexane to each dissolving 1 mg of each isocyanate-urea Buffer, a 50 ml sample loop, and a UV solution to precipitate the isocyanate- derivative in 10 ml of Acetonitrile. detector set at 254 nm. urea derivative. Using a Buchner funnel, Calibration standards are prepared from vacuum filter the solid-isocyanate-urea this stock solution by making derivative and rinse with 50 ml of appropriate dilutions of aliquots of the hexane. Dissolve the precipitate in a stock into Acetonitrile. minimum aliquot of MeCl2. Repeat the 10.5 Preparation of Method Blanks. hexane precipitation and filtration Prepare a method blank for each test

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program (up to twenty samples) by 11.3 Analysis. Analyze replicative Vmstd = Volume of gas sample measured transferring 300 ml of the absorption samples by HPLC, using the appropriate by the dry-gas meter, corrected to solution to a 1,000-ml round bottom conditions established in section 10.2. standard conditions, dscm (dscf). flask and concentrate as outlined in The width of the retention time window 12.2 Conversion from Isocyanate to section 11.2. used to make identifications should be the Isocyanate-urea derivative. The 10.6 Preparation of Field Spike based upon measurements of actual equation for converting the amount of Solution. Prepare a field spike solution retention time variations of standards free isocyanate to the corresponding for every test program in the same over the course of a day. Three times the amount of isocyanate-urea derivative is manner as calibration standards (see standard deviation of a retention time as follows: Section 10.4). The mass of the target for a compound can be used to calculate isocyanate in the volume of the spike a suggested window size; however, the solution for the field spike train shall be experience of the analyst should weigh equivalent to that estimated to be heavily in the interpretation of the The equation for converting the captured from the source concentration chromatograms. If the peak area exceeds amount of IU derivative to the for each compound; alternatively, you the linear range of the calibration curve, corresponding amount of FIm is as may also prepare a solution that the sample must be diluted with follows: represents half the applicable standard. acetonitrile and reanalyzed. Average the 10.7 HPLC Calibrations. See Section replicate results for each run. For each 11.1. sample you must report the same 11.0 Analytical Procedure information required for analytical 12.3 Calculate the correlation calibrations (Section 11.1). For non- coefficient, slope, and intercepts for the 11.1 Analytical Calibration. Perform detect or values below the detection calibration data using the least squares a multipoint calibration of the limit of the method, you shall report the method for linear regression. instrument at six or more upscale points value as ‘‘<’’ numerical detection limit. Concentrations are expressed as the x- over the desired quantitative range variable and response is expressed as (multiple calibration ranges shall be 12.0 Data Analysis and Calculations the y-variable. calibrated, if necessary). The field Nomenclature and calculations, same 12.4 Calculate the concentration of samples analyzed must fall within at as in Method 5, section 6, with the isocyanate in the sample: least one of the calibrated quantitative following additions below. ranges and meet the performance 12.1 Nomenclature. criteria specified below. The lowest AS = Response of the sample, area point in your calibration curve must be counts. 12.5 Calculate the total amount at least 5, and preferably 10, times the b = Y-intercept of the linear regression collected in the sample by multiplying MDL. For each calibration curve, the line, area counts. the concentration (mg/ml) times the final value of the square of the linear BR = Percent Breakthrough volume of acetonitrile (10 ml). correlation coefficient, i.e., r2, must be C = Concentration of a specific ≥ A 0.995, and the analyzer response must isocyanate compound in the initial ± be within 10 percent of the reference sample, mg/ml. 12.6 Calculate the concentration of value at each upscale calibration point. CB = Concentration of a specific isocyanate (mg/dscm) in the stack gas. Calibrations must be performed on each isocyanate compound in the day of the analysis, before analyzing any replicate sample, mg/ml. of the samples. Following calibration, a CI = Concentration of a specific secondary standard shall be analyzed. A isocyanate compound in the 12.7 Calculate Relative Percent continual calibration verification (CCV) sample, mg/ml. Difference (RPD) for each replicative must also be performed prior to any Crec = Concentration recovered from sample sample and after every ten samples. The spike train, mg/ml. measured value of this independently CS = Concentration of isocyanate prepared standard must be within ±10 compound in the stack gas, mg/dscm percent of the expected value. Report CT = Concentration of a specific 12.8 Calculate Field Train Spike the results for each calibration standard isocyanate compound (Impingers Recovery secondary standard, and CCV as well as 1–4), mg/dscm the conditions of the HPLC. The reports Cspike = Concentration spiked, mg/ml. should include at least the peak area, C4 = Concentration of a specific isocyanate compound (Impingers height, and retention time for each 12.9 Calculate Percent Breakthrough isocyanate compound measured as well 14), mg/dscm as a chromatogram for each standard. FIm = Mass of Free Isocyanate 11.2 Concentration of Samples. FTSrec = Field Train Spike Recovery Im = Mass of the Isocyanate Transfer each sample to a 1,000-ml Where: Imw = MW of the Isocyanate round bottom flask. Attach the flask to 3 3 IUm = Mass of Isocyanate-urea K = 35.314 ft /m if Vm(std) is expressed a rotary evaporator and gently evaporate 3 3 derivative in English units. = 1.00 m /m if Vm(std) is to dryness under vacuum in a 65 °C IUmw = MW of the isocyanate-urea expressed in metric units. water bath. Rinse the round bottom flask M= Slope of the linear regression line, 13.0 Method Performance three times each with 2 ml of area counts-ml/mg. acetonitrile and transfer the rinse to a mI = Mass of isocyanate in the total Evaluation of sampling and analytical 10-ml volumetric flask. Dilute the sample procedures for a selected series of sample to volume with acetonitrile and MW = Molecular weight compounds must meet the quality transfer to a 15-ml vial and seal with a RPD = Relative Percent Difference control criteria (See Section 9) for each PTFE lined lid. Store the vial ≤4 °C until VF = Final volume of concentrated associated analytical determination. The analysis. sample, typically 10 ml. sampling and analytical procedures

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must be challenged by the test 1971, PB–203 060/BE, APTD–0581, 35 4. Shigehara, R.T., Adjustments in the EPA compounds spiked at appropriate levels pp. Nomograph for Different Pitot Tube and carried through the procedures. 2. Rom, J.J., Maintenance, Calibration, and Coefficients and Dry Molecular Weights, Operation of Isokinetic Source Sampling Stack SamplingNews, 2:4–11 (October 14.0 Pollution Prevention [Reserved] Equipment, Research Triangle Park, NC, 1974). U.S. Environmental Protection Agency, 5. U.S. Environmental Protection Agency, 40 15.0 Waste Management [Reserved] CFR part 60, Appendices A–1, A–2, and March 1972, PB–209 022/BE, APTD– A–3, Methods 1–5. 16.0 Alternative Procedures [Reserved] 0576, 39 pp. 6. Vollaro, R.F., A Survey of Commercially 17.0 References 3. Schlickenrieder, L.M., Adams, J.W., and Available Instrumentation for the Thrun, K.E., Modified Method 5 Train Measurement of Low-Range Gas 1. Martin, R.M., Construction Details of and Source Assessment Sampling Velocities, Research Triangle Park, NC, Isokinetic Source-Sampling Equipment, System: Operator’s Manual, U.S. U.S. Environmental Protection Agency, Research Triangle Park, NC, U.S. Environmental Protection Agency, EPA/ Emissions Measurement Branch, Environmental Protection Agency, April 600/8–85/003/1985). November 1976 (unpublished paper).

[FR Doc. 2018–09080 Filed 5–15–18; 8:45 am] BILLING CODE 6560–50–P

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Part III

Securities and Exchange Commission

Self-Regulatory Organizations; Cboe C2 Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules in Connection With the Migration of Cboe C2 to Cboe EDGX Options Technology; Notice

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SECURITIES AND EXCHANGE Exchange, Inc. (‘‘EDGX’’ or ‘‘EDGX Options’’), Cboe BZX Exchange, Inc. COMMISSION Options’’). (‘‘BZX’’), and Cboe BYX Exchange, Inc. The text of the proposed rule change (‘‘BYX’’ and, together with C2, Cboe [Release No. 34–83214; File No. SR–C2– is also available on the Exchange’s Options, EDGX, EDGA, and BZX, the 2018–005] website (http://www.cboe.com/About ‘‘Cboe Affiliated Exchanges’’). C2 Self-Regulatory Organizations; Cboe CBOE/CBOELegalRegulatory intends to migrate its technology onto C2 Exchange, Inc.; Notice of Filing and Home.aspx), at the Exchange’s Office of the same trading platform as EDGX. In Immediate Effectiveness of a Proposed the Secretary, and at the Commission’s this context, C2 proposes to align Rule Change To Amend Rules in Public Reference Room. certain system functionality with EDGX Connection With the Migration of Cboe II. Self-Regulatory Organization’s (and BZX in certain circumstances), C2 to Cboe EDGX Options Technology Statement of the Purpose of, and while retaining certain C2 functionality, Statutory Basis for, the Proposed Rule as well as to make other nonsubstantive May 11, 2018. Change changes to the rules, retaining only Pursuant to Section 19(b)(1) of the intended differences between it and the Securities Exchange Act of 1934 (the In its filing with the Commission, the Cboe Affiliated Exchanges. Although the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Exchange included statements Exchange intentionally offers certain notice is hereby given that on April 27, concerning the purpose of and basis for features that differ from those offered by 2018, Cboe C2 Exchange, Inc. (the the proposed rule change and discussed the Cboe Affiliated Exchanges and will ‘‘Exchange’’ or ‘‘C2’’) filed with the any comments it received on the continue to do so, the Exchange believes Securities and Exchange Commission proposed rule change. The text of these offering similar functionality to the (the ‘‘Commission’’) the proposed rule statements may be examined at the extent practicable will reduce potential change as described in Items I and II places specified in Item IV below. The confusion for market participants. The below, which Items have been prepared Exchange has prepared summaries, set proposed rule change modifies or adds by the Exchange. The Exchange filed the forth in sections A, B, and C below, of certain system functionality currently proposal as a ‘‘non-controversial’’ the most significant aspects of such offered by EDGX to provide a consistent proposed rule change pursuant to statements. technology offering for users of Cboe Section 19(b)(3)(A)(iii) of the Act 3 and A. Self-Regulatory Organization’s Affiliated Exchanges. Rule 19b–4(f)(6) thereunder.4 The Statement of the Purpose of, and Chapter 1 Commission is publishing this notice to Statutory Basis for, the Proposed Rule solicit comments on the proposed rule Change The proposed rule change makes the change from interested persons. following changes to Chapter 1 of the C2 1. Purpose Rulebook. I. Self-Regulatory Organization’s In 2016, the Exchange’s parent The following table identifies the Statement of the Terms of Substance of company, Cboe Global Markets, Inc. defined terms that are proposed to be the Proposed Rule Change (formerly named CBOE Holdings, Inc.) added to or amended in C2 Rule 1.1, The Exchange proposes to amend C2’s (‘‘Cboe Global’’), which is also the whether the proposed amended rule rulebook in preparation for the parent company of Cboe Exchange, Inc. was moved from a current C2 rule or technology migration of C2 onto the (‘‘Cboe Options’’), acquired EDGX and corresponds to the rule of EDGX or options platform of an Exchange’s its affiliated exchanges, Cboe EDGA another exchange, and proposed affiliated options exchange, Cboe EDGX Exchange, Inc. (‘‘EDGA’’ or ‘‘EDGA substantive changes.

Corresponding other Defined term Provision Current C2 rule exchange rule Description of change

ABBO ...... best bid(s) or offer(s) disseminated by other N/A ...... EDGX Rule 21.20(a)(1) Added to C2 Rule 1.1. Eligible Exchanges 5 and calculated by the Exchange based on market information the Exchange receives from OPRA. Adjusted Series series in which, as a result of a corporate ac- 8.5(a)(1) ...... N/A ...... Moved to C2 Rule 1.1. tion by the underlying security, one option contract in the series represents the delivery of other than 100 shares of underlying stock or Units. Bid ...... the price of a limit order or quote to buy one N/A ...... EDGX Rule 16.1(a)(6) Added to C2 Rule 1.1. or more options contracts. Book or Simple electronic book of simple orders and quotes 1.1 ...... EDGX Rule 16.1(a)(9) Adding that Book may also be referred to as Book. maintained by the System. Simple Book. Call ...... option contract under which the holder of the 1.1 ...... EDGX Rule 16.1(a)(12) Added clarifying language consistent with put option has the right, in accordance with the definition to conform to EDGX rule. terms of the option and Rules of the Clear- ing Corporation, to purchase from the Clear- ing Corporation the number of units of the underlying security or index covered by the option contract, at a price per unit equal to the exercise price, upon the timely exercise of the option.

1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78s(b)(3)(A)(iii). 2 17 CFR 240.19b–4. 4 17 CFR 240.19b–4(f)(6).

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Corresponding other Defined term Provision Current C2 rule exchange rule Description of change

Capacity ...... capacity in which a User submits an order, N/A ...... N/A ...... C2 currently refers to capacity as origin code; which the User specifies by applying the current C2 origin codes are in Regulatory corresponding code to the order, and in- Circular RG13–015, and are the same as cludes B (account of a broker or dealer, in- the proposed Capacities, except the pro- cluding a Foreign Broker-Dealer), C (Public posed rule changes W to U (see EDGX Customer account), F (OCC clearing firm specifications 6), and adds L, which is not proprietary account), J (joint back office ac- currently permitted on C2 (see Cboe Op- count), L (non-Trading Permit Holder affil- tions Regulatory Circular RG13–038). iate account), M (Market-Maker account), N (market-maker or specialist on another op- tions exchange), U (Professional account). Cboe Trading... Cboe Trading, Inc., broker-dealer affiliated 3.18 ...... EDGX Rule 2.11 ...... Moved to C2 Rule 1.1. with C2 and will serve as inbound and out- bound router for C2, as discussed below. Class ...... all option contracts with the same unit of trad- 1.1 ...... EDGX Rule 16.1(a)(13) Deletes unnecessary reference to options, ing covering the same underlying security or given only options trade on C2; adds that index. options may cover an index (see C2 Chap- ter 24); deletes that a class means options of the same type (currently defined as put or call), as a class is comprised of both puts and calls; adds that a class is comprised of option contracts with the same unit of trad- ing covering the same underlying security or index (discussed below). Clearing Cor- Options Clearing Corporation ...... 1.1 ...... EDGX Rule 16.1(14) ... Adding that the Clearing Corporation may also poration or be referred to as OCC. OCC. Clearing Trading a Trading Permit Holder that has been admit- 1.1 ...... EDGX Rule 16.1(a)(15) Added that Clearing Trading Permit Holders Permit Holder. ted to membership in the Clearing Corpora- self-clear or clear on behalf of others (con- tion pursuant to the provisions of the rules sistent with C2 today). of the Clearing Corporation and is self-clear- ing or that clears transactions for other Trading Permit Holders. Commission or U.S. Securities and Exchange Commission .... 1.1 ...... EDGX Rule 1.5(g) ...... Adding that the Commission may also be re- SEC. ferred to as SEC. Complex Order order involving the concurrent execution of 6.13(a)(1) ...... EDGX Rule 21.20(a)(5) Moved to C2 Rule 1.1 and 6.12(a); added that two or more different series in the same C2, like EDGX, can impose a maximum class (the ‘‘legs’’ or ‘‘components’’ of the number of legs and determine in which order), for the same account, occurring at or classes complex orders are available. near the same time in a ratio greater than or equal to one-to-three and less than or equal to three-to-one and for the purpose of executing a particular investment strategy with no more than the applicable number of legs (which number the Exchange deter- mines on a class-by-class basis); the Ex- change determines in which classes com- plex orders are eligible for processing. Customer ...... Public Customer or broker-dealer ...... N/A ...... EDGX Rule 16.1(a)(19) Added to C2 Rule 1.1; new definition in C2 Rules, but concept of customers exists throughout current C2 rules (including in pri- ority rules). Customer Order agency order for the account of a Customer ... N/A ...... EDGX Rule 16.1(a)(20) Added to C2 Rule 1.1. Discretion ...... authority of a broker or dealer to determine for N/A ...... EDGX Rule 16.1(a)(21) Added to C2 Rule 1.1; substantively the same a Customer the type of option, class or se- as the EDGX definition. ries of options, the number of contracts, or whether options are to be bought or sold. EFID ...... Executing Firm ID ...... N/A ...... EDGX Rule 21.1(c)(1) Added to C2 Rule 1.1; EDGX rule refers to the term MPID, which is generally equiva- lent to EFID; similar to the term acronym, which is used in current C2 rules; EFID is the term used in C2 technical specification following migration, and thus more appro- priate for the C2 rules; as noted below, a firm may have multiple EFIDs. Equity Option ... option on an equity security or Unit ...... N/A (equity options EDGX Rule 16.1(a)(27) Added to C2 Rule 1.1. permitted by C2 Chapter 5). Exchange Act ... Securities Exchange Act of 1934, including 1.1 ...... EDGX Rule 16.1(a)(23) Added rules and regulations, which also apply rules and regulations thereunder. to the Exchange rules. Expiration Date third Friday of expiration month ...... 1.1 ...... N/A ...... Deleted language about series that expire on Saturday rather than Friday, as no more grandfathered series are listed on the Ex- change. He, Him, His ..... deemed to refer to persons of female as well N/A ...... EDGX Rule 16.1(a)(25) Added to C2 Rule 1.1. as male gender and to include organiza- tions, as well as individuals, when the con- text requires. Index Option ..... option on a broad-based, narrow-based, micro N/A (index options per- EDGX Rule 16.1(a)(26) Added to C2 Rule 1.1. narrow-based or other index of equity secu- mitted by C2 Chap- rities prices. ter 24).

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Corresponding other Defined term Provision Current C2 rule exchange rule Description of change

Market Close .... time the Exchange specifies for the end of N/A (market close time EDGX Rule 16.1(a)(34) Added to C2 Rule 1.1. trading on the Exchange on that trading day. set forth in C2 Rule 6.1). Market Open .... time the Exchange specifies for the start of N/A (market open time EDGX Rule 16.1(a)(35) Added to C2 Rule 1.1. trading on the Exchange on that trading day. set forth in C2 Rules 6.1 and 6.10). Notional Value .. value calculated by multiplying the number of 6.15(e)(1)(C) ...... EDGX Rule Added to C2 Rule 1.1. contracts (contract size multiplied by the 20.6(e)(1)(C). contract multiplier) in an order by the order’s limit price. NBB, NBO, and national best bid, national best offer, and na- 1.1 ...... EDGX Rule 16.1(a)(29) Added NBB and NBO to C2 definition. NBBO. tional best bid or offer the Exchange cal- culates based on market information it re- ceives from OPRA. Offer ...... the price of a limit order or quote to sell one N/A ...... EDGX Rule 16.1(a)(30) Added to C2 Rule 1.1. more option contracts. OPRA ...... Options Price Reporting Authority ...... N/A ...... EDGX Rule 16.1(a)(41) Added to C2 Rule 1.1. Order ...... firm commitment to buy or sell option con- 1.1 and 6.10(a) and (b) EDGX Rule 16.1(a)(42) Moved market order and limit order definitions tracts that the System receives from a User, and 21.1(c). to C2 Rule 1.1, as all orders must be mar- which may be a limit order or market order. ket or limit. Order Entry Trading Permit Holder representing as agent N/A ...... EDGX Rule 16.1(a)(36) Added to C2 Rule 1.1. Firm/OEF. Customer Orders on the Exchange and non-Market-Maker Trading Permit Holder conducting proprietary trading. Order Instruction processing instruction a User may apply to an N/A ...... EDGX Rule 21.1(d) ..... Added to C2 Rule 1.1 (rules currently permit order (multiple instructions may apply to a various instructions); various order instruc- single order) when entering it into the Sys- tions substantively similar to those available tem. on EDGX. Attributable ...... order a User designates for display (price and 6.10(f) ...... EDGX Rule 21.1(c)(1) Moved to C2 Rule 1.1, Order Instruction. size) that includes the User’s EFID or other unique identifier. Book Only ...... order the System ranks and executes pursu- 6.10(j) ...... EDGX Rule 21.1(d)(7) Moved to C2 Rule 1.1, Order Instruction (pre- ant to Rule 6.12, subjects to the Price Ad- viously called C2-Only Order). just process pursuant to Rule 6.12, or can- cels, as applicable (in accordance with User instructions), without routing away to an- other exchange. Cancel Back ..... order a User designates to not be subject to N/A ...... EDGX Rule 11.6(b) ..... Added to C2 Rule 1.1 (consistent with Rule the Price Adjust process pursuant to Rule 6.82) and substantively similar EDGX Rule 6.12 that the System cancels or rejects (im- (further discussed below). mediately at the time the System receives the order or upon return to the System after being routed away) if displaying the order on the Book would create a violation of Rule 6.82, or if the order cannot otherwise be ex- ecuted or displayed in the Book at its limit price. Intermarket order that has the meaning provided in Sec- 6.10(g) ...... EDGX Rule 21.1(d)(2) Moved to C2 Rule 1.1 (consistent with current Sweep Order/ tion E of Chapter 6, which may be executed C2 system). ISO. at one or multiple price levels in the System without regard to Protected Quotations at other options exchanges; the Exchange re- lies on the marking of an order by a User as an ISO order when handling such order, and thus, it is the entering Trading Permit Holder’s responsibility, not the Exchange’s responsibility, to comply with the require- ments relating to ISOs. Match Trade order not executed against a resting opposite 6.10(k) ...... EDGX Rule 21.1(g)..... Moved to C2 Rule 1.1 and conformed to Prevention/ side order or quote also designated with an EDGX rule (further discussed below). MTP Modifier. MTP modifier and originating from the same EFID, Trading Permit Holder identifier, trad- ing group identifier, or Sponsored User identifier (‘‘Unique Identifier’’), with five types of modifiers available. Minimum Quan- order that requires a specified minimum quan- N/A ...... EDGX Rule 21.1(d)(3) Added to C2 Rule 1.1 (further discussed tity. tity of contracts be executed or is cancelled; below). Minimum Quantity orders will only execute against multiple, aggregated orders if such executions would occur simultaneously, and only a Book Only order with TIF designation of IOC may have a Minimum Quantity in- struction (the System disregards a Minimum Quantity instruction on any other order). Non-Attributable order a User designates for display (price and N/A ...... EDGX Rule 21.1(c)(2) Added to C2 Rule 1.1—orders currently not size) on an anonymous basis or not des- marked Attributable on C2 are non-attrib- ignated as an Attributable Order. utable; proposed rule change merely per- mits Users to affirmatively designate orders as non-attributable, and specify the Ex- change will by default treat orders as Non- Attributable unless the User designates it as Attributable.

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Corresponding other Defined term Provision Current C2 rule exchange rule Description of change

Post Only ...... order the System ranks and executes pursu- N/A ...... EDGX Rule 21.1(d)(8) Added to C2 Rule 1.1 (further discussed ant to Rule 6.12, subject to the Price Adjust below). process pursuant to Rule 6.12, or cancels or rejects (including if it is not subject to the Price Adjust process and locks or crosses a Protected Quotation of another exchange), as applicable, except the order may not re- move liquidity from the Book or route away to another Exchange. Price Adjust ...... order a User designates to be subject to the N/A ...... EDGX Rule 21.1(i) ...... Added to C2 Rule 1.1 (Price Adjust process Price Adjust process pursuant to Rule 6.12, described further below). or an order a User does not designate as Cancel Back. Reserve Order .. limit order with both a portion of the quantity 6.10(c)(8) and 6.12(c) BZX Rule 21.1(d)(1) ... Moved to C2 Rule 1.1 (further discussed displayed (‘‘Display Quantity’’) and a re- below). serve portion of the quantity (‘‘Reserve Quantity’’) not displayed; both display quan- tity and reserve quantity are available for potential execution against incoming orders, with Max Floor and replenishment instruc- tions available. Stop (Stop- order to buy (sell) that becomes a market 6. 10(c)(3) ...... BZX Rule 21.1(d)(11) Moved to C2 Rule 1.1; modified to compare Loss) Order. order when the consolidated last sale price stop prices to national prices rather than Ex- (excluding prices from complex order trades change prices (EDGX similarly uses the if outside the NBBO) or NBB (NBO) for a NBBO), which reflect price from entire mar- particular option contract is equal to or ket (similar change in Rule 6.10(c) provision above (below) the stop price specified by regarding stop orders). the User. Stop-Limit Order order to buy (sell) that becomes a limit order 6.10(c)(4) ...... BZX Rule 21.1(d)(12) Moved to C2 Rule 1.1; modified to compare when the consolidated last sale price (ex- stop prices to national prices rather than Ex- cluding prices from complex order trades if change prices (EDGX similarly uses the outside the NBBO) or NBB (NBO) for a par- NBBO), which reflect price from entire mar- ticular option contract is equal to or above ket (similar change in Rule 6.10(c) provision (below) the stop price specified by the User. regarding stop orders). Port ...... adds definitions of various types of ports avail- N/A ...... EDGX Rule 21.1(j)...... Added to C2 Rule 1.1 (further discussed able in the new Exchange system. below). Primary Market primary exchange on which an underlying se- N/A ...... EDGX Rule 16.1(a)(44) Added to C2 Rule 1.1 (concept exists in cur- curity is listed. rent C2 rules, such a 6.11(b)). Protected a Protected Bid or Protected Offer, as each of 6.80 ...... EDGX Rule 16.1(a)(47) Added to list of defined terms in C2 Rule 1.1. Quotation. those terms is defined in Rule 6.80. Put ...... option contract under which the holder of the 1.1 ...... EDGX Rule 16.1(a)(49) Added clarifying language consistent with put option has the right, in accordance with the definition to conform to EDGX rule. terms and provisions of the option and Rules of the Clearing Corporation, to sell to the Clearing Corporation the number of units of the underlying security covered by the option contract, at a price per unit equal to the exercise price, upon the timely exer- cise of such option. Quote or bid or offer entered by a Market-Maker as a 1.1 ...... EDGX Rule 16.1(a)(51) Conforms C2 definition to EDGX definition (in- quotation. firm order, which updates the Market-Mak- cluding to state that Market-Maker quotes er’s previous bid or offer, if any. are entered using order functionality). SBBO ...... best bid and offer on the Exchange for a com- 1.1 ...... EDGX Rule Moved to proposed C2 Rule 6.13(a); currently plex strategy calculated using the BBO for 21.20(a)(11). defined as Exchange Spread Market in C2 each component of a complex strategy to Rule 1.1, which definition is being deleted. establish the best net bid and offer for a complex strategy. Series ...... all option contracts of the same class that are 1.1 ...... EDGX 16.1(a)(55) ...... Clarified that a series consists of options of the same type of option and have the same the same type (i.e. options with the same exercise price, and expiration date. exercise price and date that are calls are a series, and options with the same exercise price and date that are puts are another se- ries). Size ...... number of contracts up to 999,999 associated N/A ...... EDGX Rule 21.1(e) ..... Added to C2 Rule 1.1 (consistent with current with an order or quote. C2 system). SNBBO ...... national best bid and offer for a complex strat- 1.1 ...... EDGX Rule Moved to Rule 6.13(a); currently defined as egy calculated using the NBBO for each 21.20(a)(12). National Spread Market in C2 Rule 1.1, component of a complex strategy to estab- which definition is being deleted. lish the best net bid and offer for a complex strategy. System Securi- options that currently trade on the Exchange N/A ...... EDGX Rule 21.1(b) ..... Added to C2 Rule 1.1 (additional term for op- ties. pursuant to Chapters 5 and 24. tions listed for trading). Time-in-Force ... period of time the System will hold an order N/A ...... EDGX Rule 21.1(f) ...... Added to C2 Rule 1.1 (general term to cover for potential execution. various time-in-force instructions). Day ...... time-in-force that means an order to buy or 6.10(e)(1) ...... EDGX Rule 21.1(f)(3) Moved to C2 Rule 1.1. sell that, if not executed, expires at market close. Fill-or-Kill/FOK .. time-in-force that means an order that is to be 6.10(c)(5) ...... EDGX Rule 21.1(f)(5) Moved to C2 Rule 1.1. executed in its entirety as soon as the Sys- tem receives it and, if not so executed, can- celled.

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Corresponding other Defined term Provision Current C2 rule exchange rule Description of change

Good-til-Can- time-in-force that means, if after entry into the 6.10(c)(2) ...... EDGX Rule 21.1(f)(4) Moved to C2 Rule 1.1. celled/GTC. System, the order is not fully executed, the order (or unexecuted portion) remains avail- able for potential display or execution (with the same timestamp) unless cancelled by the entering User, or until the option ex- pires, whichever comes first. Good-til-Date/ time-in-force that means, if after entry into the N/A ...... EDGX Rule 21.1(f)(1) Added to C2 Rule 1.1 (similar to EDGX time- GTD. System, the order is not fully executed, the in-force, as further discussed below). order (or unexecuted portion) remains avail- able for potential display or execution (with the same timestamp) until a date and time specified by the entering User unless can- celled by the entering User. Immediate-or- time-in-force for a limit order that is to be exe- 6.10(c)(6) ...... EDGX Rule 21.1(f)(2) Moved to C2 Rule 1.1. Cancel/IOC. cuted in whole or in part as soon as the System receives it; the System cancels and does not post to the Book any portion of an IOC order (or unexecuted portion) not exe- cuted immediately on the Exchange or an- other options exchange. At the Open/ time-in-force means an order that may only 6.10(c)(7) ...... EDGX Rule 21.1(f)(6) Moved to C2 Rule 1.1. OPG. participate in the Opening Process on the Exchange; the System cancels an OPG order (or unexecuted portion) that does not execute during the Opening Process. Trade Desk ...... Exchange operations staff authorized to make 1.1 ...... N/A ...... Changed to Trade Desk, which is new term certain trading determinations on behalf of for Help Desk at the Exchange (which term the Exchange. is being deleted from the Rules). Transaction ...... transaction involving a contract effected on or N/A ...... EDGX Rule 16.1(a)(11) Added to C2 Rule 1.1 (same as EDGX rule, through the Exchange or its facilities or sys- consistent with industry term). tems. Unit ...... shares or other securities traded on a national 5.3, Interpretation and EDGX Rule 19.3(i) Added to list of defined terms in C2 Rule 1.1. securities exchange and defined as an Policy .06. (Units defined as ‘‘NMS stock’’ under Rule 600 of Regulation Fund Shares in NMS, and that satisfy the criteria in Rule EDGX Rules). 5.3, Interpretation and Policy .06. Unit of Trading defined in Rule 6.2 ...... 6.2 ...... N/A ...... Added to list of defined terms in C2 Rule 1.1 (discussed below). User ...... any Trading Permit Holder or Sponsored User N/A ...... EDGX Rule 16.1(a)(63) Added to C2 Rule 1.1 (common term to apply who is authorized to obtain access to the to two types of market participants defined System pursuant to Rule 6.8. in C2 Rules, which are the only two market participants that may access the System under C2 Rules).

The proposed rule change makes are calls constitute another series. proposed definition). The proposed changes throughout C2 Rules to conform Additionally, there are some exceptions definition accounts for these exceptions, to the changes to defined terms. for options that cover the same and is a more accurate definition of As noted above, the proposed rule underlying but constitute a separate what options constitute a class today on change amends the definition of class to class, and the proposed definition the Exchange. mean all option contracts with the same incorporates this concept.7 For example, As noted above, the proposed rule unit of trading (including adjusted mini-options cover the same underlying change adds the following order series as determined by OCC) covering security as standard options, but are instructions to C2 Rule 1.1, which order the same underlying security or index. considered as separate class since they instructions are available on EDGX or The current definition states a class have a different deliverable (10 shares of BZX, as indicated. consists of options of the same type, the underlying security rather than 100 • Cancel Back: A Book Only or Post which is defined as either a put or a call. shares of the underlying security, Only order a User designates to not be However, the term class is generally respectively). Additionally, when OCC subject to the Price Adjust Process understood to include both puts and adjusts series in connection with pursuant to Rule 6.12, which the System calls, which are types of series, not corporate actions (see Rule 5.7), it cancels or rejects if it locks or crosses separate classes, making this definition announces whether those series are part the opposite side of the ABBO. The outdated. As described above, options of the same existing class or a new class System executes a Book Only—Cancel with the same exercise price and covering the same underlying security. Back order against resting orders and expiration date that are puts constitute The concept of unit of trading more quotes, and cancels or rejects a Post one series, and options with the same accurately describes the series that Only—Cancel Back order, that locks or exercise price and expiration date that constitute a class (e.g. the unit of trading crosses the opposite side of the BBO. for a mini-option is 10, and the unit of The proposed functionality is partially 5 Eligible Exchange is defined in Cboe Rule trading for a standard option is 100, 6.80(7). included in the definition of Post Only making each a separate class under the 8 6 BOE Specifications, available at http:// in the EDGX rules. The proposed rule cdn.batstrading.com/resources/membership/BATS_ change extends the definition to Book US_Options_BOE2_Specification.pdf, and FIX 7 The proposed definition is based on the OCC Only orders and is consistent with Specifications, available at http:// definition of class. See OCC By-Laws Article I, cdn.batstrading.com/resources/membership/BATS_ C.(11). The proposed definition of unit of trading US_Options_BZX_FIX_Specification.pdf. is consistent with C2 Rule 6.2. 8 See EDGX Rule 21.6(d)(8).

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linkage rules included in Chapter 6, execute against a resting order marked potentially undesirable executions Section E of the Rules and is consistent with any MTP modifier originating from without negatively impacting broker- with EDGX Rule 21.6(f). Book Only the same Unique Identifier. If both dealer best execution obligations. orders and Post Only orders do not orders are equivalent in size, the System • Minimum Quantity Order: An order route by definition, and the Cancel Back cancels or rejects both orders. If the that requires a specified minimum instruction provides an option for Users orders are not equivalent in size, the quantity of contracts be executed or is to determine how they will be handled System cancels or rejects the smaller of cancelled. Minimum Quantity orders within the System, consistent with their the two orders and decrements the size will only execute against multiple, definitions.9 of the larger order by the size of the aggregated orders if such executions • Match Trade Prevention (MTP) smaller order, which remaining balance would occur simultaneously. Only a Modifiers: Current C2 Rule 6.10(k) remains on or processes in accordance Book Only order with a time-in-force defines a Market-Maker Trade with Rule 6.12, as applicable. designation of IOC may have a Prevention Order as an IOC order Notwithstanding the foregoing, unless a Minimum Quantity instruction (the market with the Market-Maker Trade User instructs the Exchange not to do System disregards a Minimum Quantity Prevention designation. A Market-Maker so, the System cancels or rejects both instruction on any other order). This Trade Prevention Order that would orders if the resting order is marked functionality ensures a User’s order will trade against a resting quote or order for with any MTP modifier other than MDC not partially execute for less than the the same Market-Maker will be and the incoming order is smaller in minimum amount of contracts a User cancelled, as will the resting quote or size than the resting order. desires to execute as part of its order (unless the Market-Maker Trade Æ MTP Cancel Both (‘‘MCB’’): An investment strategy. Only permitting Prevention Order is received while an incoming order marked with the ‘‘MCB’’ this functionality for Book Only IOC order for the same Market-Maker is modifier does not execute against a order is consistent with the purpose of subject to an auction, in which case resting order marked with any MTP this functionality, as current Exchange only the Market-Maker Trade modifier originating from the same functionality cannot guarantee that an Prevention Order will be cancelled). Unique Identifier. The System cancels order that routes or rests on the book to or rejects both orders. execute against incoming orders will be The Exchange proposes to adopt MTP Æ modifiers substantively the same as MTP Cancel Smallest (‘‘MCS’’): An executed for the minimum requested 10 incoming order marked with the ‘‘MCS’’ amount. those available on EDGX. The • proposed MTP modifiers expand this modifier does not execute against a Post Only Order: An order the functionality to all Users, rather than resting order marked with any MTP System ranks and executes pursuant to just Market-Makers, and provide Users modifier originating from the same proposed Rule 6.12, subjects to the Price with multiple options regarding how the Unique Identifier. If both orders are Adjust process pursuant to Rule 6.12, or System handles orders and quotes with equivalent in size, the System cancels or cancels (including if it is not subject to the same Unique Identifiers. Pursuant to rejects both orders. If the orders are not the Price Adjust process and it would the proposed rule change, an order equivalent in size, the System cancels or lock or cross a Protected Quotation on designated with any MTP modifier is rejects the smaller of the two orders, and another exchange), as applicable (in not executed against a resting opposite the larger order remains on the Book or accordance with User instructions), side order or quote also designated with processes in accordance with Rule 6.12, except the order may not remove as applicable. liquidity from the Book or route away to an MTP modifier and originating from The proposed MTP functionality is another Exchange. This proposed the same Unique Identifier. Except for designed to prevent market participants instructions is nearly identical to the C2 the MDC modifier described below, the from unintentionally causing a Only/Book Only order instruction, MTP modifier on the incoming order proprietary self-trade. The Exchange except it will also not remove liquidity controls the interaction between two believes these modifiers will allow firms from the Book. The Exchange currently orders marked with MTP modifiers: to better manage order flow and prevent has a maker-taker fee structure, Æ MTP Cancel Newest (‘‘MCN’’): An undesirable executions with themselves. pursuant to which an execution taking incoming order marked with the ‘‘MCN’’ Trading Permit Holders may have liquidity from the Book is subject to a modifier does not execute against a multiple connections into the Exchange taker fee. This proposed instruction resting order marked with any MTP consistent with their business needs and provides Users with flexibility to avoid modifier originating from the same function. As a result, orders routed by incurring a taker fee if their intent is to Unique Identifier. The System cancels the same firm via different connections submit an order to add liquidity to the or rejects the incoming order, and the may, in certain circumstances, trade Book. resting order remains in the Book. • Æ against each other. The proposed Reserve Order: A limit order with MTP Cancel Oldest (‘‘MCO’’): An modifiers provide Trading Permit both a portion of the quantity displayed incoming order marked with the ‘‘MCO’’ Holders with functionality (in addition (‘‘Display Quantity’’) and a reserve modifier does not execute against a to what is available on C2 today) with portion of the quantity (‘‘Reserve resting order marked with any MTP the opportunity to prevent these Quantity’’) not displayed. Both the modifier originating from the same potentially undesirable trades. The Display Quantity and Reserve Quantity Unique Identifier. The System cancels Exchange notes that offering the MTP of the Reserve Order are available for or rejects the resting order, and modifiers may streamline certain potential execution against incoming processes the incoming order in regulatory functions by reducing false orders. When entering a Reserve Order, accordance with Rule 6.12. Æ positive results that may occur on a User must instruct the Exchange as to MTP Decrement and Cancel Exchange generated wash trading the quantity of the order to be initially (‘‘MDC’’): An incoming order marked surveillance reports when orders are displayed by the System (‘‘Max Floor’’). with the ‘‘MDC’’ modifier does not executed under the same Unique If the Display Quantity of a Reserve Identifier. For these reasons, the Order is fully executed, the System will, 9 EDGX Rule 11.6(b) (which relates to the EDGX Equities market) contains a similar Cancel Back Exchange believes the MTP modifiers in accordance with the User’s instruction. offer users enhanced order processing instruction, replenish the Display 10 See EDGX Rule 21.1(g). functionality that may prevent Quantity from the Reserve Quantity

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using one of the below replenishment entry, data receipt, or access to on the Exchange by allowing the instructions. If the remainder of an information (for example, as discussed bundling of multiple instructions in a order is less than the replenishment below, certain risk control settings may single message, the main purpose of amount, the System will display the be input by port). such functionality has always been to entire remainder of the order. The • A ‘‘bulk order port’’ is a dedicated encourage quoting on exchanges.13 System creates a new timestamp for logical port that provides Users with the The Exchange proposes to provide both the Display Quantity and Reserve ability to submit single and bulk order this functionality, which is more similar Quantity of the order each time it is messages to enter, modify, or cancel to quoting functionality currently replenished from reserve. orders designated as Post Only Orders available on C2. In particular, EDGX has Æ Random Replenishment: An with a Time-in-Force of Day or GTD never differentiated between a quote or instruction that a User may attach to an with an expiration time on that trading an order on entry. Rather, Users on order with Reserve Quantity where the day. As noted below, quoting EDGX submit orders to the Exchange System randomly replenishes the functionality will not be available to regardless of the Capacity (i.e., Display Quantity for the order with a Market-Makers after the technology Customer, Market-Maker, or other Non- number of contracts not outside a migration. This bulk order functionality Market-Maker professional) of the order replenishment range, which equals the will provide Market-Makers with a way and regardless of the intended result Max Floor plus and minus a to submit orders that simulate current from submitting such order (e.g., to replenishment value established by the quoting functionality. Bulk order remove liquidity, post and display User when entering a Reserve Order messages will not route to other liquidity on EDGX, or route to another with a Random Replenishment exchanges with use of the Post Only market). Following migration, C2 will instruction. instruction, which is consistent with similarly not differentiate between a Æ Fixed Replenishment: For any order current quoting functionality that does quote or an order entry. Of course, an for that a User does not select Random not route Market-Maker quotes. order that is posted and displayed on Replenishment, the System will Additionally, Market-Makers generally the Exchange is a quotation and the replenish the Display Quantity of an enter new quotes at the beginning of Exchange does maintain various order with the number of contracts each trading day based on then-current requirements regarding quotations and equal to the Max Floor. market conditions, and the Day or GTD quoting on the Exchange. The Exchange, Current C2 Rule 6.10(c)(8) describes (with an expiration time on that trading however, reiterates that C2 currently current reserve order functionality day) Time-in-Force instruction is distinguishes between orders and available on C2. The proposed consistent with this practice. Because quotes, with quotes being required of functionality is generally the same as these messages will be used to add and only available to registered Market- the current C2 functionality but liquidity to the Book, the Exchange will Makers. In contrast, following enhances the use of reserve orders by make this type of port available to all migration, in order to quote on the providing flexibility for Users to Users to encourage all Users to provide Exchange, a User (including a Market- determine whether the reserve liquidity to the C2 market. This Maker) will submit an order. While the replenishment amount is fixed or functionality is substantively the same Exchange does not propose to limit bulk random. This proposed functionality is as port functionality available on EDGX. order entry functionality to Market- substantively the same as that available Port is the term the Exchange will use Makers on the Exchange, the Exchange on BZX.11 to describe the connection a User will does propose to limit the type of The Exchange will provide access to use to connect to the System following messages that may be submitted through the C2 System to Users through various the technology migration. Currently, the bulk order entry ports in order to mimic ports, as is the case on EDGX. There are Exchange refers to System connections the quoting functionality offered by C2 three different types of ports: Physical as logins, but the functionality is today. ports, logical ports, and bulk order generally the same. As noted above, the proposed rule ports. The Exchange notes a bulk order The proposed rule change restricts the change adds the Time-in-Force option port is a type of logical port, and there type of messages that may be submitted Good-til-Date, which is similar to Good- are other types of logical ports not through bulk order ports to orders til-Date functionality available on specifically identified in the proposed designated as Post Only Orders with a EDGX.14 For an order so designated, if rule. The Exchange believes a separate Time-in-Force of Day or GTD with an after entry into the System, the order is definition is warranted for bulk order expiration time on that trading day. not fully executed, the order (or any ports given the specific functionality Based on definitions described in this unexecuted portion) remains available provided through such ports but that rule filing, Post Only Orders with a for potential display or execution until other types of logical ports are Time-in-Force of Day or GTD will be a date and time specified by the entering sufficiently described in the proposed posted to and displayed by the User unless cancelled by the entering definition of logical port. Exchange, rather than remove liquidity User. This Time-in-Force option will The proposed rule change defines the or route to another options exchange. As term ‘‘port’’ to the Rule 1.1, including a general matter, and as further 13 For instance, when initially adopted by BZX, the following type of ports: 12 described below, the proposed change is bulk order entry was described as a ‘‘bulk-quoting • intended to limit the use of bulk order interface’’ and such functionality was limited to A ‘‘physical port’’ provides a BZX market makers. See Securities Exchange Act physical connection to the System. A ports to liquidity provision, particularly Release No. 65133 (August 15, 2011), 76 FR 52032 physical port may provide access to by, but not limited to, Market-Makers. In (August 19, 2011) (SR–BATS–2011–029). Bulk multiple logical ports. turn, the Exchange believes it is quoting was shortly thereafter expanded to be • available to all participants on BZX’s options A ‘‘logical port’’ or ‘‘logical session’’ unnecessary to allow orders entered via platform but the focus remained on promoting provides the ability within the System bulk order entry ports to be able to last liquidity provision on the Exchange, even though to accomplish a specific function beyond the trading day on which they the types of messages permitted were not limited were entered. The Exchange notes that to liquidity providing orders. See Securities through a connection, such as order Exchange Act Release No. 65307 (September 9, while, as a general matter, bulk order 2011), 76 FR 57092 (September 15, 2011) (SR– 11 See BZX Rule 21.1(d)(1). entry provides an efficient way for a BATS–2011–034). 12 See EDGX Rule 21.1(j). market participant to conduct business 14 See EDGX Rule 21.1(f)(1) and (3).

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provide Users with additional flexibility The proposed rule change deletes the Rule 3.16. Current Rule 3.2(f) prohibits regarding the handling of their orders on term Voluntary Professional, as that the Exchange from acquiring or the System. It will permit Users’ orders Capacity designation will no longer be maintaining an ownership interest in a to be automatically cancelled at available on C2. It is currently Trading Permit Holder, as well as specified dates and times rather than unavailable on EDGX. prohibits Trading Permit Holder require Users to manually cancel GTC Finally, the proposed rule change affiliations with the Exchange or an orders at those times. makes nonsubstantive changes affiliate of the Exchange without prior The proposed rule change also deletes throughout the definitions in Rule 1.1, Commission approval. Current the following defined terms. While including to conform language exceptions include equity interests in these terms are used in rules C2 throughout the rules, to conform CBSX LLC and affiliations with incorporates by reference to Cboe language to corresponding EDGX rules, OneChicago, LLC. EDGX Rule 2.10 Options rules, these terms are not and to use plain English. contains similar restrictions on currently used in the text of the C2 Proposed C2 Rule 1.2 states the Exchange affiliations with EDGX rulebook: Exchange announces to Trading Permit Members, but also contains additional • Aggregate Exercise Price Holders all determinations it makes exceptions, including (a) a Member’s • American-style Option pursuant to the Rules via (a) acquisition of an equity interest in Cboe • Capped-style Option specifications, Notices, or Regulatory Global that is permitted by the • Closing Purchase Transaction Circulars with appropriate advanced ownership and voting limitations • Closing Writing Transaction notice, which will be posted on the contained in the Certificate of • Covered Exchange’s website, or as otherwise Incorporation and Bylaws of Cboe • European-style Option provided in the Rules, (b) electronic Global, (b) affiliations solely by reason • Opening Purchase Transaction message, or (c) other communication of a Member (or any officer, director, • Opening Writing Transaction method as provided in the Rules. manager, managing member, partner, or • Principal Shareholder Current C2 Rules states the Exchange affiliate of such Member) becoming a • Quarterly Option Series will generally announce determinations director of the Exchange or Cboe Global, • Security Future-Option Order by Regulatory Circular, and the or (c) affiliations with Cboe Trading or • Uncovered proposed rule expands the different other Cboe-affiliated exchanges. Cboe type of documents that may be used to Global and C2 governing documents The proposed rule change deletes the announce determinations, consistent (which have been filed with the terms Participant and Permit Holder, with EDGX. Proposed Rule 1.2 makes Commission) describe any applicable which both mean a Trading Permit clear this information will be available restrictions on equity ownership of Cboe Holder, another defined term. To on C2’s website in an easily accessible Global, as well as criteria for directors simplify the C2 rulebook, the Exchange manner, regardless of the manner in of C2 and Cboe Global Markets. proposes to have one term refer to a which the Exchange announces it. Additionally, C2 governing documents Trading Permit Holder and makes Additionally, certain determinations are are substantially similar to those of conforming changes throughout the made more real-time pursuant to EDGX, and C2 and EDGX have the same Rules. electronic message received by Trading parent company (C2 Global). As The proposed rule change adds Permit Holders (e.g., providing intra-day discussed below, C2’s affiliation with Interpretation and Policy .01 to Rule 1.1, relief for parameter settings in in price Cboe Trading has recently been which states to the extent a term is used protection mechanisms described in approved by the Commission. in any Rules incorporated by reference proposed Rule 6.14, Interpretation and Therefore, the proposed rule change to Cboe Options rules and not otherwise Policy .01, other determinations related adds to Rule 3.16 similar exclusions defined in the Rules, the term will have to need to maintain fair and orderly from the affiliation prohibition the meaning set forth in the Cboe market). This single rule simplifies the contained in EDGX Rule 2.10, as the Options rules. To the extent a market Rules by eliminating the need to same affiliate restrictions apply to both participant is reviewing an incorporated repeatedly state in the rules how the exchanges and are consistent with by reference rule, the Exchange believes Exchange will announce governing documents of C2 and Cboe it is appropriate to direct market determinations. The proposed rule Global previously filed with the participants to the Cboe Options change makes conforming changes Commission. rulebook for the definitions of terms throughout the Rules. The proposed rule change adopts Rule used in that rule, because that rule Proposed C2 Rule 1.3 states unless 3.17 to govern the Exchange’s use of essentially incorporates the definition of otherwise specified, all times in the Cboe Trading as an outbound router. any defined terms used in that rule. The Rules are Eastern Time, except for times Proposed Rule 3.17 is based on EDGX Exchange believes it is simpler and less in Rules incorporated by reference to Rule 2.11. As long as Cboe Trading is confusing to refer market participants to Cboe Options rules, which are times as affiliated with C2 and is providing the Cboe Options rulebook for set forth in the applicable Cboe Options outbound routing of orders from C2 to definitions than to refer them back to rules. Current C2 Rules are generally in other securities exchanges, facilities of the C2 rulebook. Chicago time, so the proposed rule securities exchanges, automated trading The proposed rule change moves change makes conforming changes systems, electronic communications Interpretation and Policy .01 to the throughout the Rules. This single rule networks or other brokers or dealers defined term Professional to simplifies the Rules by eliminating the (‘‘Trading Centers’’ and, such function Interpretation and Policy .02 at the end need to repeatedly state times are in of Cboe Trading is referred to as the of Rule 1.1, as the Exchange believes it Eastern Time. ‘‘Outbound Router’’), Cboe Trading’s is less confusing to have all outbound routing services would be Interpretations and Policies to a rule Chapter 3 subject to the following conditions and located in the same place. The proposed The proposed rule change moves the limitations: rule change adds a cross-reference to provision regarding Exchange • C2 will regulate the Outbound this Interpretation and Policy to the affiliations with Trading Permit Holders Router function of Cboe Trading as a definition of Professional. from current Rule 3.2(f) to proposed facility (subject to Section 6 of the Act),

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and will, among other things, be Æ For purposes of proposed Rule Error Positions, as well as any resulting responsible for filing with the 3.17(a)(7), an Error Position will not assignments, will be made in a Commission rule changes and fees include any position that results from nondiscriminatory fashion. relating to the Cboe Trading Outbound an order submitted by a Trading Permit Æ Cboe Trading and the Exchange Router function and Cboe Trading will Holder to the Exchange that is executed will make and keep records to be subject to exchange non- on the Exchange and automatically document all determinations to treat discrimination requirements; [sic] processed for clearance and settlement positions as Error Positions and all • FINRA, a self-regulatory on a locked-in basis. determinations for the assignment of organization unaffiliated with the Æ Except as provided in proposed Error Positions to Trading Permit Exchange or any of its affiliates, will subparagraph (7)(C) (described in the Holders or the liquidation of Error carry out oversight and enforcement next bullet), Cboe Trading does not Positions, as well as records associated responsibilities as the designated accept any positions in its error account with the liquidation of Error Positions examining authority designated by the of a Trading Permit Holder or permit through the third-party broker-dealer. Commission pursuant to Rule 17d–1 of any Trading Permit Holder to transfer • The books, records, premises, the Act with the responsibility for any positions from the Trading Permit officers, agents, directors, and examining Cboe Trading for compliance Holder’s account to Cboe Trading’s error employees of Cboe Trading as a facility with applicable financial responsibility account. of the Exchange are deemed to be the rules. Æ If a technical or systems issue books, records, premises, officers, • A Trading Permit Holder’s use of results in the Exchange not having valid agents, directors, and employees of the Cboe Trading to route orders to another clearing instructions for a Trading Exchange for purposes of, and subject to Trading Center will be optional. Any Permit Holder to a trade, Cboe Trading oversight pursuant to, the Exchange Act. Trading Permit Holder that does not may assume the Trading Permit The books and records of Cboe Trading want to use Cboe Trading may use other Holder’s side of the trade so that the as a facility of the Exchange are subject routers to route orders to other Trading trade can be automatically processed for at all times to inspection and copying by Centers. clearance and settlement on a locked-in the Exchange and the Commission. • Cboe Trading will not engage in any basis. Nothing in the Rules precludes officers, business other than (a) its Outbound Æ In connection with a particular agents, directors, or employees of the Router function, (b) its Inbound Router technical or systems issue, Cboe Trading Exchange from also serving as officers, function as described in Rule 3.18, (c) or the Exchange will either assign all agents, directors, and employees of Cboe its usage of an error account in resulting Error Positions to the Trading Trading. compliance with proposed paragraph Permit Holders in accordance with The Exchange will comply with the (a)(7) below, and (d) any other activities proposed subparagraph (D)(i),15 or have above-listed conditions prior to offering it may engage in as approved by the all resulting Error Positions liquidated outbound routing from Cboe Trading. In Commission. • in accordance with proposed meeting the conditions, the Exchange The Exchange will establish and subparagraph (D)(ii).16 Any will have mechanisms in place to maintain procedures and internal determination to assign or liquidate protect the independence of the controls reasonably designed to Exchange’s regulatory responsibility adequately restrict the flow of 15 Proposed subparagraph (a)(7)(D)(i) states Cboe with respect to Cboe Trading, as well as confidential and proprietary Trading or the Exchange will assign all Error demonstrate the Cboe Trading cannot information between the Exchange and Positions resulting from a particular technical or use any information that it may have its facilities (including Cboe Trading), systems issue to the Trading Permit Holders affected by that technical or systems issue if Cboe because of its affiliation with the and any other entity, including any Trading or the Exchange (a) determines it has Exchange to its advantage. Current Rule affiliate of Cboe Trading, and, if Cboe accurate and sufficient information (including valid 3.2(f) and proposed Rule 3.16 provide Trading or any of its affiliates engages clearing information) to assign the positions to all that without prior Commission in any other business activities other of the Trading Permit Holders affected by that technical or systems issue; (b) determines it has approval, no Trading Permit Holder may than providing routing services to the sufficient time pursuant to normal clearance and be or become affiliated with the Exchange, between the segment of Cboe settlement deadlines to evaluate the information Exchange. The Commission recently Trading or its affiliate that provides the necessary to assign the positions to all of the approved the adoption of Rule 3.18 other business activities and the routing Trading Permit Holders affected by that technical or systems issue; and (c) has not determined to cancel regarding Cboe Trading (a C2 Trading services. all orders affected by that technical or systems issue Permit Holder) as the Inbound Router • The Exchange or Cboe Trading may in accordance with proposed subparagraph (a)(6). for C2.17 Such approval satisfies the cancel orders as either deems to be 16 Proposed subparagraph (a)(7)(D)(ii) states if requirement in current Rule 3.2(f) (and necessary to maintain fair and orderly Cboe Trading or the Exchange is unable to assign proposed Rule 3.16) for Commission markets if a technical or systems issue all Error Positions resulting from a particular technical or systems issue to all of the affected approval of the Exchange affiliation occurs at the Exchange, Cboe Trading, Trading Permit Holders in accordance with with Cboe Trading.18 or a routing destination. The Exchange proposed subparagraph (D), or if Cboe Trading or or Cboe Trading will provide notice of the Exchange determines to cancel all orders Chapter 6 affected by the technical or systems issue in the cancellation to affected Trading The proposed rule change adds a Permit Holders as soon as practicable. accordance with proposed subparagraph (a)(6), then • Cboe Trading will liquidate any applicable Error reference to C2 Rule 6.1 regarding the Cboe Trading will maintain an error Positions as soon as practicable. In liquidating such times at which the System accepts account for the purpose of addressing Error Positions, Cboe Trading will (a) provide orders and quotes, which are set forth in positions that are the result of an complete time and price discretion for the trading to liquidate the Error Positions to a third-party execution or executions that are not broker-dealer and not attempt to exercise any 17 See Securities Exchange Act Release No. 82952 clearly erroneous under Rule 6.29 and influence or control over the timing or methods of (March 27, 2018), 83 FR 14096 (April 2, 2018) (SR– result from a technical or systems issue such trading; and (b) establish and enforce policies C2–2018–004). at Cboe Trading, the Exchange, a routing and procedures that are reasonably designed to 18 The proposed rule change makes restrict the flow of confidential and proprietary nonsubstantive changes to Rule 3.18, including destination, or a non-affiliate third-party information between the third-party broker-dealer updating paragraph numbering and lettering and Routing Broker that affects one or more and Cboe Trading/the Exchange associated with the reflecting the defined term Cboe Trading and Cboe orders (‘‘Error Positions’’). liquidation of the Error Positions. Exchange.

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proposed C2 Rule 6.9 (as discussed participants (which may only be therefore which the proposed rule below). The proposed rule change also Trading Permit Holders and associated change deletes). Bandwidth packets adds Units to the list of options that the persons with authorized access, as well restrict the maximum number of orders Exchange designates to remain open for as Sponsored Users pursuant to C2 Rule and quotes per second in the same way trading beyond 4:00 p.m. but no later 3.15) may access the Exchange logical ports do, and Users may than 4:15 p.m., which is consistent with electronically to facilitate quote and similarly have multiple logical ports as EDGX rules.19 The proposed rule change order entry as well as auction they may have bandwidth packets to also deletes Interpretation and Policy processing, in accordance with accommodate their order and quote .03 regarding the trading hours of Exchange-prescribed technical entry needs. The Exchange believes it is Quarterly Index Expiration options, as specifications (to the extent any reasonable to not limit bulk order ports, they currently do not and will not trade agreement is required to be signed, as as the purpose of those ports is to on C2 upon the System migration. indicated in current Rule 6.34(d), that submit message orders in bulk. As The proposed rule change reformats would be indicated in such discussed below, the Exchange will be C2 Rule 6.4 regarding the minimum specifications). able to otherwise mitigate message increments for bids and offers on simple Proposed Rule 6.8(b) describes EFIDs. traffic as necessary. orders for options traded on the A Trading Permit Holder may obtain Proposed Rule 6.9 describes the entry Exchange into a table, which the one or more EFIDs from the Exchange of orders. Users can enters into the Exchange believes is easier to read, and (in a form and manner determined by System, or cancel previously entered moves certain information into the Exchange). The Exchange assigns an orders, from 7:30 a.m. until market Interpretations and Policies .01 and .02. EFID to a Trading Permit Holder, which close, subject to the following The only substantive change is to the System uses to identify the Trading requirements and conditions: provide that Mini-SPX Index (XSP) Permit Holder and clearing number for (a) Users may transmit to the System options, for as long as SPDR options the execution of orders and quotes multiple orders at a single price level or (SPY) participate in the Penny Pilot submitted to the System with that EFID. multiple price levels; Program, will have a $0.01 increment Each EFID corresponds to a single (b) Each order a User submits to the for all series rather than $0.01 for all Trading Permit Holder and a single Exchange must contain the minimum series quoting less than $3 and a $0.05 clearing number of a Clearing Trading information identified in the Exchange’s for all series quoting more than $3. The Permit Holder with the Clearing order entry specifications; current minimum increments for bids Corporation. A Trading Permit Holder (c) The System timestamps an order and offers for SPY options, which is an may obtain multiple EFIDs, which may upon receipt, which determines the exchange-traded fund that tracks the be for the same or different clearing time ranking of the order for purposes performance of 1/10th the value of the numbers. A Trading Permit Holder may of processing the order; and S&P 500 Index, is $0.01 regardless of only identify for any of its EFIDs the (d) For each System Security, the whether option series is quoted above, clearing number of a Clearing Trading System transmits to OPRA for display at, or below $3. Because both XSP Permit Holder that is a Designated Give the aggregate size of all orders in the options and SPY options prices are Up or Guarantor of the Trading Permit System eligible for display at the best based, in some manner, on 1/10th the Holder as set forth in Rule 6.30. A price to buy and sell. price of the S&P 500 Index, the Trading Permit Holder is able (in a form (e) After market close, Users may Exchange believes that it is important and manner determined by the cancel orders with Time in Force of that these products have the same Exchange) to designate which of its GTC or GTD that remain on the book minimum increments for consistency EFIDs may be used for each of its ports. until 4:45 p.m. and competitive reasons. This is also If a User submits an order or quote Pursuant to current Rule 6.11(a), the consistent with rules of other through a port with an EFID not enabled Exchange begins accepting order and exchanges.20 The proposed rule change for that port, the System cancels or quotes no earlier than 2:00 a.m. Chicago also modifies the paragraph formatting rejects the order or quote. The proposed time, so the proposed change amends and moves certain provisions to the rule change regarding EFIDs is similar to this time to 7:30 a.m. Eastern time to be Interpretations and Policies. the current use of acronyms on the consistent with EDGX.21 The Exchange Current C2 Rule 6.34 describes Exchange and consistent with the use of notes C2 currently begins accepting current provisions regarding System EFIDs on EDGX. The Exchange believes orders and quotes at approximately 6:30 access and connectivity, and the including a description of the use of a.m. Chicago time, which is consistent proposed rule change moves relevant EFIDs in the Rules adds transparency to with the proposed rule change, and thus provisions to proposed Rule 6.8. As the Rules. the proposed rule change will not stated in proposed Rule 6.8(a), only Consistent with the definition of port modify the time at which the Exchange authorized Users and associated persons above, the proposed rule change adds begins accepting orders and quotes. The of Users may establish connectivity to Rule 6.8(c), which states a User may provisions in paragraphs (a) through (d) and access the Exchange to submit connect to the Exchange using a logical above are consistent with current C2 orders and quotes and enter auction port available through an API, such as System functionality, and the Exchange response in accordance with the the industry-standard Financial believes adding these provisions to the Exchange’s System access procedures, Information eXchange (‘‘FIX’’) protocol Rules provides additional transparency technical specifications, and or Binary Order Entry (‘‘BOE’’) protocol for market participants. They are also requirements. This is consistent with (Cboe Market Interface will no longer be substantively the same as EDGX rules.22 current Rule 6.34(a), (d), and (e), which available, as that is an API on C2’s Paragraph (e) above provides Users with provides only authorized market current system while BOE is an API additional flexibility to manage their available on the new technology orders that remain in the book following 19 See, e.g., EDGX Rule 21.2(a) (referred to as platform). Users may use multiple the market close. Cancelling a GTC or Fund Shares and exchange-traded notes in that logical ports. Additionally, this rule); see also Cboe Options Rule 6.1, Interpretation GTD order at 4:30 p.m. has the same and Policy .03. functionality is similar to bandwidth 20 See, e.g., Cboe Options Rule 6.42, packets currently available on C2, as 21 See EDGX Rule 21.7(a). Interpretation and Policy .03. described in current Rule 6.35 (and 22 See EDGX Rule 21.6(a) through (d).

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effect as cancelling that order at 7:30 period and a determination of an change deletes current Rule 6.11(b) and a.m. the following day—ultimately, it opening price subject to certain (c)(2). accommodates the User’s goal of restrictions to ensure the opening Following the technology migration, cancelling an order prior to it trading price for a series is reasonable the Opening Process will be initiated at potentially executing during the and not too far away from the market a similar time as it is today on C2. Opening Process the following morning. price for a series. Additionally, the Proposed Rule 6.11(a) states after a time Proposed C2 Rule 6.10 states the proposed process is used following a period (which the Exchange determines Exchange may determine to make trading halt. for all classes) following the first certain order types, Order Instructions, Proposed Rule 6.11(a) describes the transaction in the securities underlying and Times in Force not available for all order entry period. The System accepts the options on the primary market that Exchange systems or classes. This orders and quotes (including GTC and is disseminated (‘‘First Listing Market provision is consistent with current C2 GTD orders remaining on the Book from Transaction’’) after 9:30 a.m. with Rule 6.10, which provides the Exchange the previous trading day) for inclusion respect to Equity Options, or following with similar flexibility. As discussed in the opening process (the ‘‘Opening 9:30 a.m. with respect to Index Options, above, the proposed rule change moves Process’’) beginning at 7:30 a.m. and the related option series open definitions of order types that will be continues to accept market and limit automatically in a random order, available on C2 following the orders and quotes until the time when staggered over regular intervals of time technology migration to proposed C2 the System initiates the Opening (the Exchange determines the length Rule 1.1. The proposed rule change Process in that option series (the ‘‘Order and number of these intervals for all deletes all-or-none and market-on-close Entry Period’’). The System does not classes) pursuant to proposed orders from Rule 6.10, as they will no accept IOC or FOK orders prior to the subparagraphs (2) through (5). This is longer be available on C2 following the completion of the Opening Process. The substantively the same as EDGX Rule technology migration.23 Additionally, System accepts but does not enforce 21.7(a). The proposed times will be the the proposed rule change maintains a MTP Modifiers during the Opening same for all classes of Equity Options, general definition of complex order in Process. Complex orders will not and all classes of Index Options, unlike proposed C2 Rule 1.1 (as discussed participate in the Opening Process currently on C2 (see current Rule above), but deletes the specific types of described in proposed Rule 6.11, and 6.11(b)), where the opening of certain complex orders set forth in current Rule instead may participate in the COB equity classes is triggered by time rather than the First Listing Market 6.10(d) (i.e. spread order, combination Opening Process described in proposed Transaction, and the opening of certain order, straddle order, strangle order, Rule 6.13(c). The System converts all index classes is triggered by the receipt ratio order, butterfly spread orders, box/ ISOs received prior to the completion of of a disseminated index value. roll spread orders, collar orders and risk the Opening Process into non-ISOs. Additionally, current C2 Rule 6.11(c) reversals). While these types of orders Orders entered during the Order Entry provides for a similar Exchange- will continue to be permitted, the Period are not eligible for execution configurable delay before a series opens Exchange does not believe it is until the opening trade occurs, as and provides for series to open in a necessary to limit complex orders to described below. Pursuant to current C2 random, staggered order over Exchange- these specific definitions, as investors Rule 6.11(a), the System begins may determine complex orders of other determined time intervals. accepting orders and quotes no earlier Proposed Rule 6.11(a)(2) describes types are more appropriate with their than 2:00 a.m. central time (that time is how the new C2 System will calculate investment strategies. The EDGX rules currently set to 7:30 a.m. eastern time). the opening price of a series. The do not contain similar definitions and The Exchange believes beginning the System determines a single price at instead only contain a general definition order entry period at 7:30 a.m. eastern which a particular option series will be of complex orders. The proposed rule time will provide Users with sufficient opened (the ‘‘Opening Price’’) within 30 change moves the provisions in time to submit orders and quotes prior seconds of the First Listing Market Interpretation .01(A) and (C) ((B) is to the beginning of the Opening Process. Transaction or 9:30 a.m., as applicable. deleted, as it relates to an order type This time is the same as when the order If there are no contracts in a series that that will no longer be available) to Rule entry period on C2 (and EDGX) would execute at any price, the System 6.12(c), which will consolidate all currently begins. C2 currently also does will open the series for trading without provisions regarding order handling in a not accept IOC or FOK orders during the determining an Opening Price. The single location in the Rules. pre-opening period (see current Rule Opening Price, if determined to be valid The proposed rule change deletes 6.11(a)(1)), and it also does not accept as described below, of a series will be: current Rule 6.11 regarding the opening ISOs (see current Rule 6.11(a)(1)) (rather (a) If there is both an NBB and NBO, process on C2, as that opening process than convert them to non-ISOs). The the midpoint of the NBBO (if the will not be available on C2 following the proposed functionality to convert ISOs midpoint is a half increment, the technology migration. Proposed Rule to non-ISOs is the same as functionality System rounds down to the nearest 6.11 describes the opening process that that exists on EDGX today, and the minimum increment (the ‘‘NBBO will apply to C2 following the Exchange believes this may increase the Midpoint’’); technology migration, which is opportunity for execution of these (b) if the NBBO Midpoint is not valid, substantively the same as the current orders during the Opening Process. the last disseminated transaction price 24 opening process on EDGX. The Following the technology migration, in the series after 9:30 a.m. (the ‘‘Last proposed opening process is generally the C2 System will not have Print’’); or similar to the current C2 opening functionality available to disseminate (c) if the NBBO Midpoint and the Last process, as it provides for a pre-opening opening messages as it does today, so Print are not valid, the last disseminated the proposed rule change deletes transaction in the series from the 23 The proposed rule change makes conforming current Rule 6.11(a)(2). Additionally, previous trading day (the ‘‘Previous changes throughout the rules to delete references to these order types and provisions solely related to when the Opening Process begins, the Close’’). these order types. System will not disseminate a notice as If the NBBO Midpoint, Last Print, and 24 See EDGX Rule 21.7. it does today, so the proposed rule Previous Close are not valid, the

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Exchange in its discretion may extend and Previous Close are not valid as participation in the Opening Process the Order Entry Period by up to 30 described above, the System enters non- following the Regulatory Halt. The seconds or open the series for trading. executed orders and quotes (or System cancels a User’s open orders For purposes of validating the unexecuted portions) into the Book in upon a halt that is not a Regulatory Halt. Opening Price: time sequence, where they may be This functionality will provide Users (a) the NBBO Midpoint, the Last Print, processed in accordance with Rule 6.12. with additional flexibility to instruct the or the Previous Close is a valid price if This is similar to the opening rotation System how to handle their orders in it is not outside the NBBO, and the price period described in current Rule 6.11(c) the event of a Regulatory Halt. is no more than the following Minimum and Interpretation and Policy .01.26 Following a trading halt, the System Amount away from the NBB or NBO for While EDGX and C2 have different opens a series once the primary market the series: matching algorithms consistent with lifts the Regulatory Halt or upon the their market models, the proposed Exchange’s determination that the Minimum opening process represents a fair and conditions that led to the halt are no NBB amount objective manner to match orders during longer present or that the interests of a Below $2.00 ...... $0.25 the opening. Additionally, proposed fair and orderly market are best served $2.00 to $5.00 ...... 0.40 Rule 6.11 indicates the opening process by a resumption of trading, as described Above $5.00 to $10.00 ...... 0.50 will generally occur within 30 seconds in proposed Rule 6.11(b)(3). Pursuant to Above $10.00 to $20.00 ...... 0.80 (or an extended time at the discretion of proposed Rule 6.11(b)(4), the System Above $20.00 to $50.00 ...... 1.00 the Exchange as noted above), while determines the Opening Price within 30 Above $50.00 to $100.00 ...... 1.50 current Rule 6.11 indicates the opening seconds of the Regulatory Halt or other Above $100.00 ...... 2.00 process generally must occur within 60 trading halt being lifted. The Exchange seconds (subject to various opening believes this proposed process for or opening following a halt will permit C2 (b) the Last Print or Previous Close is conditions). Proposed Rule 6.11(a)(5) provides if to reopen as quickly as possible and in a valid price if there is no NBB and no the Exchange opens a series for trading a fair and orderly manner following a NBO, or there is a NBB (NBO) and no when the NBBO Midpoint, Last Print, halt. The proposed rule change NBO (NBB) and the price is equal to or and Previous Close are not valid as regarding how the System will open greater (less) than the NBB (NBO). described above, the System enters non- following a trading halt is substantively While these conditions to determine similar to the Opening Process that may the validity of an opening price differ executed orders and quotes (or unexecuted portions) into the Book in be used following a trading halt than the opening conditions currently described in EDGX Rule 21.7(a). applied on C2, the Exchange believes time sequence, where they may be posted, cancelled, executed, or routed in The proposed rule change moves application of the proposed conditions current Rule 6.11(e) regarding the will still determine a reasonable and fair accordance with proposed Rule 6.12. This is similar C2’s current authority to Exchange’s ability to deviate from the opening price for series on C2. The standard opening procedure to proposed proposed process to determine and compel opening in a series even if the opening conditions are not met, as set Rule 6.11(c). validate an Opening Price is Current C2 Rule 6.11 may be used for substantively the same as the process forth in current Rule 6.11(e). Proposed Rule 6.11(b) describes how closing; however, the proposed rule currently used on EDGX.25 change only applies to openings. Proposed Rule 6.11(a)(4) states after the Opening Process will be used to reopen trading following a halt. The Because C2 generally does not use its establishing a valid Opening Price, the current process for a closing, the System matches orders and quotes in Opening Process following a trading halt will be the same as the one used for Exchange does not believe the fact that the System that are priced equal to or the proposed process may only be used more aggressively than the Opening regular trading (as described above), except as modified by proposed for openings following the technology Price in accordance with priority migration will impact trading on C2. applicable to the class pursuant to Rule paragraph (b). Proposed Rule 6.11(b)(1) states there will be an Order Entry Therefore, the proposed rule change 6.12. In other words, the System deletes current C2 Rule 6.11(g). allocates orders and quotes in a class Period that begins immediately when the Exchange halts trading in the series The proposed rule change moves during the Opening Process using the current Rule 6.11, Interpretation and same allocation from Rule 6.12(a) the if there is a Regulatory Halt (i.e. if the primary market for the applicable Policy .03 regarding how the System Exchange applies to the class intraday. handles market orders if the underlying Matches occur until there is no underlying security declares a regulatory trading halt, suspension, or security is in a limit up-limit down state remaining volume or an imbalance of during the opening process to proposed orders. All orders and quotes (or pause with respect to such security); however, there will be no Order Entry Rule 6.11(d). unexecuted portions) matched pursuant Proposed Rule 6.11 is substantively Period if the Exchange halts for another to the Opening Process will be executed the same as EDGX Rule 21.7, and the reason. This is consistent with current at the Opening Price. The System enters Exchange believes the proposed opening Rule 6.11(f), which permits the any non-executed orders and quotes (or process (based on current use on EDGX) Exchange to shorten or eliminate the unexecuted portions) into the Book in is a fair and orderly way to open series pre-opening period after a halt. time sequence, where they may be on C2 following the technology Proposed Rule 6.11(b)(2) states the processed in accordance with Rule 6.12. migration. The System cancels any OPG orders (or System queues a User’s open orders The proposed rule change deletes unexecuted portions) that do not upon a Regulatory Halt, unless the User current Rule 6.11, Interpretation and execute during the Opening Process. entered instructions to cancel its open Policy .02 regarding Exchange Proposed subparagraph (a)(5) states if orders upon a Regulatory Halt, for determinations made pursuant to Rule the Exchange opens a series for trading 6.11, as that is replaced by proposed 26 The Exchange does not intend to have a when the NBBO Midpoint, Last Print, different algorithm apply at the open and intraday, Rule 1.2. and therefore proposes to delete current Rule 6.11, Proposed Rule 6.12 describes how the 25 See EDGX Rule 21.7(a)(1) and (2). Interpretation and Policy .01. System will process, display, prioritize,

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and execute orders and quotes entered fractions less than 1⁄2 rounded down. If locked the Protected Quotation at the into the Book. Current C2 Rule 6.12 the executable quantity cannot be time of entry. All orders the System re- provides orders and quotes may be evenly allocated, the System distributes ranked and re-displayed pursuant to allocated pursuant to price-time or pro- remaining contracts one at a time in Price Adjust retain their priority as rata, and those two options will also be size-time priority to orders that were compared to other orders subject to available on the new System. The rounded down. The Exchange believes Price Adjust based upon the time the proposed rule change revises the this is a fair, objective process and System initially received such orders. description to be similar to EDGX and simple systematic process to allocate Following the initial ranking and BZX Rules 21.8. Proposed Rule ‘‘extra’’ contracts when more than one display of an order subject to Price 6.12(a)(1) states resting orders and market participant may be entitled to Adjust, the System will only re-rank and quotes 27 in the Book with the highest those extra contracts after rounding, and re-display an order to the extent it bid and lowest offer have priority.28 it is consistent with EDGX Rule 21.8(c). achieves a more aggressive price. The Proposed Rule 6.12(a)(2) states if there Proposed Rule 6.12(a)(3) states System adjusts the ranked and are two or more resting orders or quotes displayed orders have priority over displayed price of an order subject to at the best price, the Exchange will nondisplayed orders. This is consistent Price Adjust once or multiple times determine for each class whether the with current C2 Rule 6.12(c)(1). depending upon the User’s instructions time or pro-rata allocation applies. Following migration, the only and changes to the prevailing NBBO. A Pursuant to time priority (i.e. price- nondisplayed orders will be the reserve limit order subject to the Price Adjust time), the System prioritizes orders and portions of reserve orders (as discussed process will not be displayed at any quotes at the same price in the order in above, all-or-none orders will no longer price worse than its limit price. This re- which the System receives them (i.e. in be available). pricing mechanism (in addition to the time priority).29 Pursuant to pro-rata The proposed rule change deletes proposed Cancel Back instruction priority, the System allocates orders and current C2 Rule 6.12(a)(3) and (b), described above) is an additional way in quotes proportionally according to size which permit the Exchange to apply which C2 will ensure compliance with (i.e. in a pro-rata basis).30 All classes on customer priority, trade participation locked and crossed market rules in EDGX are allocated in a pro-rata rights, or additional priority overlays Chapter 6, Section of the C2 Rulebook manner; however, current C2 rules (small order and market turner) to and is substantively the same as EDGX permit the Exchange to determine for classes. The Exchange does not Rule 21.1(i). It also provides Users with each class whether price-time or pro- currently, and does not intend to, apply additional flexibility regarding how they rata will apply, and the proposed rule any of these priority overlays to any want the System to handle their orders. change maintains that flexibility. class. Therefore, it is not necessary to Proposed Rule 6.12(c) describes how Currently on C2, with respect to the include these Rules in the C2 Rulebook, the System will handle orders in pro-rata allocation algorithm, the and deleting these rules will have no additional circumstances. Proposed System allocates contracts to the first impact on C2 trading.31 The proposed subparagraph (1) states, subject to the resting order or quote proportionally rule change makes conforming changes exceptions contained in Rule 6.82(b), according to size (based on the number throughout the rules to delete references the System does not execute an order at of contracts to be allocated and the size to these priority overlays. a price that trades through a Protected of the resting orders and quotes). Then, Proposed Rule 6.12(b) describes a new Quotation of another options exchange. the System recalculates the number of Price Adjust process, which is a re- The System routes an order a User contracts to which each remaining pricing mechanism offered to Users on designates as routable in compliance resting order and quote is afforded EDGX.32 As discussed above, orders with applicable Trade-Through proportionally according to size (based designated to be subject to the Price restrictions. The System cancels or on the number of remaining contracts to Adjust process or not designated as rejects any order not eligible for routing be allocated and the size of the Cancel Back (and thus not subject to the or the Price Adjust process that is remaining resting orders and quotes) Price Adjust process), will be handled entered with a price that locks or and allocates contracts to the next pursuant to proposed Rule 6.12(b).33 If crosses a Protected Quotation of another resting order or quote. The System an order is subject to the Price Adjust options exchange. C2’s System currently repeats this process until it allocates all process, the System ranks and displays will not execute orders at trade-through contracts from the incoming order or a buy (sell) order that, at the time of prices, consistent with Chapter 6, quote. Following the System migration, entry, would lock or cross a Protected Section E of the Rules. This provision is the System instead will allocate Quotation of the Exchange or another substantively the same as EDGX Rule executable quantity to the nearest whole Exchange at one minimum price 21.6(e) and (f). Additionally, the proposed rule number, with fractions 1⁄2 or greater increment below (above) the current rounded up (in size-time priority) and NBO (NBB). change modifies the handling of stop If the NBBO changes so that an order orders to state the System cancels or 27 Displayed orders and quotes always have subject to Price Adjust would not lock rejects a buy (sell) stop or stop-limit priority over undisplayed orders and quotes, which or cross a Protected Quotation, the order if the NBB (NBO) at the time the is consistent with current C2 functionality. See System gives the order a new timestamp System receives the order is equal to or current Rule 6.12(c)(1) and proposed Rule above (below) the stop price, and 6.12(a)(3). Since all-or-none orders will no longer be and displays the order at the price that available on C2 following the technology migration, accepts a buy (sell) stop or stop-limit the only orders that will not be displayed on C2 are 31 The Exchange notes EDGX Rule 21.8 includes order if the consolidated last sale price the reserve portions of Reserve Orders. customer priority and trade participation right at the time the System receives the order 28 See current C2 Rule 6.12(a)(1) and (2) (under overlays. is equal to or above (below) the stop both allocation algorithms, orders and quotes are 32 See EDGX Rule 21.1(i). price.34 The Exchange believes first prioritized based on price); see also EDGX Rule 33 Under EDGX rules, the price adjust process is 21.8(b). not the default setting for orders, like it will be for comparing the stop price of a stop or 29 See current C2 Rule 6.12(a)(1); see also BZX C2. However, EDGX Users still have the option to Rule 21.8(a). use or not use the price adjust process with various 34 Current description of the handling of stop 30 See current C2 Rule 6.12(a)(2); see also EDGX order instructions. Therefore, this is not a orders is in current C2 Rule 6.11(i), which is being Rule 21.8(c). significant difference. deleted.

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stop-limit order to the NBBO and last accordance with Rule 1.1, as discussed Rule 6.12(g) is not necessary. As further consolidated sale price rather than above. This is consistent with the discussed below, complex orders will prices available on the Exchange is definition of MTP Modifiers added to trade with leg markets prior to trading appropriate, as the NBBO better reflects Rule 1.1 above and substantively the with other complex orders, and will the market price of the series. This is same as EDGX Rule 21.8(k). never trade at the same price as the similar to various price protections in The proposed rule change moves SBBO, which is consistent with current the rules, as discussed below, that provisions regarding how the System Rule 6.12(g).37 compare order prices to national prices handles market and stop orders during The proposed rule change adds rather than Exchange prices. This is also a limit up-limit down state from current proposed Rule 6.12(g), which states the same as EDGX Rule 21.1(d)(11) and Rule 6.10, Interpretation and Policy .01 options subject to a trading halt initiated (12), which provide that stop and stop- to proposed Rule 6.12(c)(5). pursuant to Rule 6.32 open for trading limit orders on EDGX compare the stop The proposed rule change deletes following the halt at the time specified price to the NBBO and last consolidated current C2 Rule 6.12(c) related to in Rule 6.11, which is consistent with sale price. The C2 System following the contingency orders. The Exchange does current Rule 6.11(f). Additionally, technology migration will be unable to not believe the introductory language proposed Rule 6.12(g) states when compare the stop price of a stop or stop- and subparagraphs (c)(2) and (3) are trading resumes, the System places limit order to the last consolidated sale necessary, as the order instruction orders and quotes that do not execute price upon receipt of the order, which definitions discussed above and order during the Opening Process in the Book is why the order will still be accepted handling instructions below contain in time priority and processes or even if the stop price is above (below) detail regarding how the System will executes them as described in Rule 6.12. the last consolidated sale price when handle orders designated as stop, stop- The Exchange believes this is a fair, the System receives it. limit, or reserve.36 The proposed rule objective process and simple systematic Proposed Rule 6.12(c)(3) states the change moves the provision in process to prioritize orders following a System cancels or rejects a GTC or GTD subparagraph (c)(1) regarding priority of trading halt, and is consistent with order in an adjusted series.35 Pursuant displayed orders over nondisplayed EDGX Rule 21.8(j). to Rule 5.7, due to a corporate action by orders to proposed Rule 6.12(a)(3), as Proposed Rule 6.13 modifies C2’s the issuer of the underlying, OCC may discussed above. Because all-or-none current complex order functionality to adjust the price of an underlying orders will no longer be available substantially conform to functionality security. After a corporate action and a following the technology migration, the that will be available on C2’s new subsequent adjustment to the existing proposed rule change deletes System and is currently used on EDGX. options, OPRA and OCC identify the subparagraph (c)(4), which relates to Trading of complex orders will be series in question with a separate handling of all-or-none orders. subject to all other Rules applicable to symbol consisting of the underlying The proposed rule change deletes trading of orders, unless otherwise symbol and a numerical appendage. As current Rule 6.12(e)(2), which states if provided in Rule 6.13 (which is a standard procedure, exchanges listing the price or quantity of one side of a currently the case). options on an underlying security that quote is changed, the unchanged side The proposed rule change moves the undergoes a corporate action resulting retains its priority position. definitions of COA and COB to in adjusted series will list new standard Additionally, the proposed rule change proposed paragraph (a). Additionally, option series across all appropriate deletes the reference in Rule 6.12(e)(1) the proposed rule change adds expiration months the day after the related to the changed side of a quote. definitions of synthetic best bid or offer existing series are adjusted. The Current C2 functionality provides (‘‘SBBO’’) and synthetic national best adjusted series are generally actively Market-Maker with the ability to submit bid or offer (‘‘SNBBO’’) to proposed traded for a short period of time two-sided quotes, to which the above paragraph (a), which are referred to in following adjustment, but prices of provisions relates. Following the current C2 Rule 1.1 as derivative spread those series may have been impacted by technology migration, there will be no market and national spread market. The the adjustment. As a result, any GTC or such functionality available. Market- proposed rule change also adds the GTD orders submitted prior to the Makers will submit quotes using order following terms to Rule 6.13(a): • Complex strategy: The term adjustment may no longer reflect the functionality, but it will only permit ‘‘complex strategy’’ means a particular market price of the adjusted series, as one-sided quotes to be input. Therefore, combination of components and their the prices of the GTC or GTD orders do these provisions are no longer ratios to one another. New complex not factor in the adjustment. The applicable. Exchange believes any executions of The proposed rule change deletes strategies can be created as the result of such GTC and GTD orders in adjusted current Rule 6.12(g) regarding a the receipt of a complex instrument series may be at erroneous prices, and complex order priority exception. creation request or complex order for a thus believes it is appropriate for the Proposed Rule 6.13 (as described below) complex strategy that is not currently in System to cancel these orders, which describes the priority rules related to the the System. The Exchange is thus will permit Users to resubmit orders in execution of complex orders, so current proposing two methods to create a new the adjusted series at prices that reflect complex strategy, one of which is a the adjustment and to submit orders in 36 Current C2 rules categorize all-or-none, market- message that a Trading Permit Holder the new series. on-close, stop, stop-limit, FOK, IOC, OPG, and can send to create the strategy and the Proposed Rule 6.12(c)(4) states the reserve orders as contingency orders. As discussed other is a message a Trading Permit above, the Exchange will no longer make all-or- Holder can send that will generate the System does not execute an order with none and market-on-close orders available an MTP Modifier entered into the following the technology migration. Additionally, strategy and that is also an order in that System against an order entered with an the Exchange believes FOK, IOC, and OPG relate to same strategy. These methods will be MTP Modifier and the same Unique the time of execution of orders rather than a equally available to all Trading Permit contingency, and thus the proposed rule change Holders, but the Exchange anticipates Identifier, and instead handles them in categorizes these instructions as Times-in-Force, as discussed above. Therefore, the only current orders that Trading Permit Holders and other 35 This is true on any trading day on which the that could be deemed contingency under current adjusted series continues to trade. rules are stop, stop-limit, and reserve. 37 See proposed C2 Rule 6.13(f)(2).

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liquidity providers who anticipate and may not Leg into the Simple Book. is intended as an immediate execution providing larger amounts of trading Unless designated as Complex Only, or cancellation whereas COA is a activity in complex strategies are the and for all other Times-in-Force and process that includes a short delay in most likely to send in a complex Capacities, a complex order may order to broadcast and provide instrument creation request (i.e., to execute against complex orders in the participants time to respond). Current prepare for their trading in the complex COB and may Leg into the Simple Book. Rule 6.13(c)(1)(B) defines COA-eligible strategy throughout the day), whereas The Complex Only Order option is orders as orders the Exchange other participants are more likely to analogous to functionality on EDGX. determines to be eligible for COA based simply send a complex order that The Exchange also believes the on size, type, and origin type, so the simultaneously creates a new strategy. proposed functionality is analogous to proposed rule change is consistent with The Exchange may limit the number of other types of functionality already this flexibility. The Exchange new complex strategies that may be in offered by C2 that provides Trading determines which Capacities (i.e., non- the System or entered for an EFID Permit Holders, including Market- broker-dealer customers, broker-dealers (which EFID limit would be the same Makers, the ability to direct the that are not Market-Makers on an for all Users) at a particular time. Exchange not to route their orders away options exchange, or Market-Makers on • Regular trading: The term ‘‘regular from the Exchange (Book Only). Similar an options exchange) are eligible for trading’’ means trading of complex to such analogous features, the entry onto the COB.38 This is consistent orders that occurs during a trading Exchange believes that Market-Makers with EDGX Rule 21.20(c). Additionally, session other than (a) at the opening of may utilize Complex Only Order current Rule 6.13(c)(2)(A) indicates a the COB or re-opening of the COB for functionality as part of their strategies to COA will initiate if the COA-eligible trading following a halt (described in maintain additional control over their order is marketable against the BBO, so paragraph (c) below) or (b) during the executions, in connection with their the proposed marketability requirement COA process (described in proposed attempt to provide and not remove in the definition of a COA-eligible is Rule 6.13(d)). liquidity, or in connection with consistent with current COA rules as These proposed defined terms are the applicable fees for executions. well as the proposed priority rule. same as those included in EDGX Rule • Current Rule 6.13(c)(2)(B) provides 21.20(a). COA-Eligible and Do-Not-COA Orders: The Exchange proposes to allow Trading Permit Holders with ability to Proposed Rule 6.13(b) describes the choose whether an order is COA-eligible order types, Order Instructions, and all types of orders to initiate a COA but proposes to have certain types of orders or not, as the proposed rule does. The Times-in-Force that are eligible for proposed definition of COA-eligible complex orders to be entered into and default to initiating a COA upon arrival with the ability to opt-out of initiating order is substantively the same as EDGX handled by the System. As an initial Rule 21.20, Interpretation and Policy matter, proposed paragraph (b) states a COA and other types of orders default to not initiating a COA upon arrival .02. the Exchange determines which Times- • Complex Orders with MTP with the ability to opt-in to initiating a in-Force of Day, GTC, GTD, IOC, or OPG Modifiers: Users may apply the COA. Upon receipt of an IOC complex are available for complex orders following MTP Modifiers to complex order, the System does not initiate a (including for eligibility to enter the orders: MTP Cancel Newest, MTP COA unless a User marked the order to COB and initiate a COA). The proposed Cancel Oldest, and MTP Cancel Both. If initiate a COA, in which case the rule change is also consistent with a complex order would execute against System cancels any unexecuted portion EDGX Rule 21.20(b). Complex orders are a complex order in the COB with an at the end of the COA. Upon receipt of Book Only and may be market or limit MTP Modifier and the same Unique a complex order with any other Time- orders. Because complex orders are not Identifier, the System handles the in-Force (except OPG), the System routable, and may not be Post Only, complex orders with these MTP initiates a COA unless a User marked Book Only is the only available Order Modifiers as described in Rule 1.1. If a the order to not initiate a COA. Buy Instruction related to whether an order complex order with an MTP Modifier (sell) complex orders with User is routable or not routable. The only would Leg into the Simple Book and instructions to (or which default to) other available Order Instruction for execute against any leg on the Simple initiate a COA that are higher (lower) complex orders is Attributable/Non- Book with an MTP Modifier and the than the SBB (SBO) and higher (lower) Attributable. This relates only to same Unique Identifier, the System than the price of complex orders resting information that User wants, or does not cancels the complex order. This will at the top of the COB are ‘‘COA-eligible want, included when a complex order is allow a User to avoid trading complex orders,’’ while buy (sell) complex orders displayed, and has no impact on how orders against its own orders or orders with User instructions not to (or which complex orders are processed or of affiliates, providing Users with an default not to) initiate a COA or that are execute. As they do for simple orders, additional way to maintain control over priced equal to or lower (higher) than certain Users want the ability to track their complex order executions. the SBB (SBO) or equal to or lower their orders, such as which of the Current Rules 6.10 and 6.13(b) and (c) (higher) than the price of complex resting orders in the COB or which provide C2 with authority to determine orders resting at the top of the COB are COA’d [sic] order is theirs. The which order types are available for COB ‘‘do-not-COA orders.’’ The Exchange Attributable designation means this and COA (and current paragraph (b) believes that this gives market information will appear in market data states complex orders may be IOC, Day, participants extra flexibility to control feeds and auction messages, permitting or GTC, as GTD functionality is not the handling and execution of their these Users to track their own orders. currently available on C2). Proposed complex orders by the System by giving Proposed paragraph (b) also adds the paragraph (b) is consistent with this them the additional ability to determine following instructions that are current Exchange authority and expands whether they wish to have their permissible for complex orders: the Times-in-Force the Exchange may • Complex Only Orders: A Market- complex order initiate a COA. The Exchange further believes that the Maker may designate a Day or IOC order 38 Currently, all Capacities may rest complex as ‘‘Complex Only,’’ which may execute proposed default values are consistent orders in the COB, which the Exchange plans to be only against complex orders in the COB with the terms of the orders (e.g., IOC the case following the technology migration.

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permit for complex orders to be consistent with the current COB any orders in the complex strategy in consistent with the Times-in-Force Opening Process, as set forth in current the COB (in time priority), except it Legs available for complex orders on EDGX. Interpretation and Policy .07(a). All any complex orders it can into the Proposed Rule 6.13(b) is substantively complex orders the System receives Simple Book. The proposed rule change the same as EDGX Rule 21.20(b). This prior to opening a complex strategy provides additional detail regarding authority enables the Exchange to pursuant to the COB Opening Process, how the COB will open if there are no modify complex order types available including any delay applied by the matching trades. Additionally, the on the Exchange as market conditions Exchange, are eligible to be matched in Exchange believes the proposed change and remain competitive. the COB Opening Process and not configurable time period is important Proposed Rule 6.13(c) describes the during the Opening Process described in because the opening price protections process of accepting orders prior to the Rule 6.11. The proposed delay is are relatively restrictive (i.e., based on opening of the COB for trading (and consistent with current EDGX the SNBBO), and the configurable time prior to re-opening after a halt), and the functionality and is additional detail in period provides the Exchange with the process by which the Exchange will the C2 Rules. C2 similarly applies a ability to periodically review the open the COB or re-open the COB delay period during the regular Opening process and modify it as necessary to following a halt (the ‘‘Opening Process, as described above. ensure there is sufficient opportunity to Process’’). The current COB opening If there are matching complex orders have Opening Process executions process is described in current Rule in a complex strategy, the System without also waiting too long to 6.13, Interpretation and Policy .07, determines the COB opening price, transition to regular trading. This is which the proposed rule change deletes. which is the price at which the most similar to EDGX Rule 21.20(c)(2)(D). The proposed COB opening process is complex orders can trade. If there are Currently on C2, the System opens the substantively the same as the EDGX multiple prices that would result in the COB in a similar manner, however it COB opening process described in same number of complex orders first attempts to match complex orders EDGX Rule 21.20(c)(A) through (D). executed, the System chooses the price against orders in the Simple Book, then The COB Opening Process will occur that would result in the smallest matches complex orders against each at the beginning of each trading day and remaining imbalance as the COB other. As proposed, and consistent with after a trading halt (similar to the opening price. If there are multiple EDGX Rule 21.20(c)(2)(C), complex current COB opening process, as stated prices that would result in the same orders will not leg into the book upon in current Interpretation and Policy number of complex orders executed and the COB open (unless there are no .07(b)). There will be a complex order the same ‘‘smallest’’ imbalance, the matching complex orders and a complex entry period, during which the System System chooses the price closest to the strategy opens without a trade); will accept complex orders for inclusion midpoint of the (i) SNBBO or (ii) if there however, the COB opening price must in the COB Opening Process at the times is no SNBBO available, the highest and improve the SBBO by at least $0.01 as and in the manner set forth in proposed lowest potential opening prices as the described above, thus providing Rule 6.11(a), except the Order Entry COB opening price. If the midpoint protection to the leg markets (including Period for complex orders ends when price would result in an invalid customers). The proposed matching the complex strategy opens. Currently, increment, the System rounds the COB process for complex orders on the COB C2 similarly accepts complex orders opening price up to the nearest is similar to the process in current prior to the COB opening, at the same permissible increment. If the COB Interpretation and Policy .07(a)(ii). time it begins to accept simple orders. opening price equals the SBBO, the Additionally, C2 currently restricts As discussed above, this time is System adjust the COB opening price to valid opening trade prices to be within changing from no earlier than 2:00 a.m. a price that is better than the the SBBO rather than the SNBBO as the central to 7:30 a.m. eastern (which time corresponding bid or offer in the Simple proposed opening process does. The is consistent with the current pre-open Book by $0.01. This is consistent with SNBBO more accurately reflects the period on C2). The Exchange believes EDGX Rule 21.20(c)(2)(C), except on then-current market, rather than the this provides Users with sufficient time EDGX, the opening price must improve SBBO, and thus the Exchange believes to enter complex orders prior to the the SBBO only if there are priority it is a better measure to use for purposes open. Complex orders entered during customers on the legs. of determining the reasonability of the the Order Entry Period will not be After the System determines a COB prices of orders. eligible for execution until the COB opening price, the Exchange executes Proposed Rule 6.13(d) describes the Opening Process occurs. Beginning at matching complex orders in accordance COA process for COA-eligible orders. 7:30 a.m. and updated every five with the priority in proposed Rule Orders in all classes will be eligible to seconds thereafter until the initiation of 6.12(a) applicable to the class at the participate in COA. Upon receipt of a the COB Opening Process, the Exchange COB opening price. The System enters COA-eligible order, the System initiates will disseminate indicative prices and any remaining complex orders (or the COA process by sending a COA order imbalance information based on unexecuted portions) into the COB, auction message to all subscribers to the complex orders queued in the System subject to a User’s instructions. If there Exchange’s data feeds that deliver COA for the COB Opening Process. This is are no matching complex orders in a auction messages. A COA auction new functionality that will provide complex strategy, the System opens the message identifies the COA auction ID, Users with information regarding the complex strategy without a trade. If after instrument ID (i.e., complex strategy), expected COB opening, which is the an Exchange-established period of time Capacity, quantity, and side of the same as functionality available on EDGX that may not exceed 30 seconds, the market of the COA-eligible order. The (see EDGX Rule 21.20(c)(2)(A)). System cannot match orders because (i) Exchange may also determine to include The System initiates the COB the System cannot determine a COB the price in COA auction messages, Opening Process for a complex strategy opening price (i.e., all queued orders are which will be the limit order price or after a number of seconds (which market orders) or (ii) the COB opening the SBBO (if initiated by a market number the Exchange determines) after price is outside the SNBBO, the System complex order), or the drill-through all legs of the strategy in the Simple opens the complex strategy without a price if the order is subject to the drill- Book are open for trading. This is trade. In both case, the System enters through protection in Rule 6.14(b). This

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is similar to the RFR message the As another example, each COA the original COA order at a better price. Exchange currently sends to Trading Response is required to specifically The proposed rule change deletes that Permit Holders as set forth in current identify the COA for which it is targeted provision, as it is being replaced by the subparagraph (c)(2)(A). and if not fully executed will be functionality above (which order The System may initiate a COA in a cancelled at the conclusion of the COA. terminates a COA in that circumstance complex strategy even though another Thus, COA Responses will only be rather than joins the COA, but still COA in that complex strategy is considered in the specified COA. provides execution opportunities for the ongoing. This concurrent COA The proposed COA process is new incoming order by placing it on the functionality is not currently available substantively the same as the COA COB). The proposed rule change deletes on C2, but is available on EDGX (see process described in EDGX Rule current C2 Rule 6.13(c)(8), which EDGX Rule 21.20(d)(1)). The Exchange 21.20(d), except there will be no describes current circumstances that believes it will increase price customer priority on C2 for simple or cause a COA to end early, as those will improvement and execution complex orders. no long apply following the technology opportunities for complex orders Proposed subparagraph (d)(3) defines migration. The proposed rule change following the technology migration. The the Response Time Interval as the deletes current Rule 6.13(c)(8)(A) and Exchange notes at the outset that based period of time during which Users may (B) regarding incoming COA-eligible on how Exchange Systems operate (and submit responses to the COA auction orders received during the Response computer processes generally), it is message (‘‘COA Responses’’). The Time Interval, as those orders may impossible for COAs to occur Exchange determines the duration of the initiate a separate COA under the ‘‘simultaneously’’, meaning that they Response Time Interval, which may not proposed rule change that permits would commence and conclude at exceed 500 milliseconds. This is similar concurrent COAs. The proposed rule exactly the same time. Thus, although it to current subparagraph (c)(3)(B), except change deletes current Rule 6.13(c)(D) is possible as proposed for one or more the proposed rule change reduces the and (E) relating to incoming do-not-COA COAs to overlap, each COA will be maximum time period from three orders and changes in the leg markets started in a sequence and with a time seconds to 500 milliseconds. The that would terminate an ongoing COA, that will determine its processing. Thus, Exchange believes that 500 milliseconds as under the proposed rules, those new even if there are two COAs that is a reasonable amount of time within orders would not terminate a COA but commence and conclude at nearly the which participants can respond to a would be eligible to execute against the same time, each COA will have a COA auction message, as it is the COA-eligible order at the end of the distinct conclusion at which time the maximum timeframe in EDGX Rule COA) (see proposed subparagraph COA will be allocated. 21.20(d)(3). The current timer on C2 is (d)(2), which states execution will occur If there are multiple COAs ongoing for 20 milliseconds, and therefore the against orders in the Simple Book and a specific complex strategy, each COA Exchange believes market believes a COB at the time the COA concludes). concludes sequentially based on the maximum response time of 500 Ultimately, these incoming orders are time each COA commenced, unless milliseconds is sufficient to respond to eligible for execution against a COA- terminated early as described below. At auctions. eligible order under current and the time each COA concludes, the However, the Response Time Interval proposed rules. The proposed rule System allocates the COA-eligible order terminates prior to the end of that time change merely changes the potential pursuant to proposed Rule 6.13(d)(5) duration: execution time to the end of the full and takes into account all COA (1) When the System receives a non- response interval time from an Responses for that COA, orders in the COA-eligible order on the same side as abbreviated response interval time. Simple Book, and unrelated complex the COA-eligible order that initiated the Proposed subparagraph (d)(4) orders on the COB at the time the COA COA but with a price better than the describes COA Responses that may be concludes. If there are multiple COAs COA price, in which case the System submitted during the Response Time ongoing for a specific complex strategy terminates the COA and processes the Interval for a specific COA. The System that are each terminated early as COA-eligible order as described below accepts a COA Response(s) with any described below, the System processes and posts the new order to the COB; or Capacity in $0.01 increments during the the COAs sequentially based on the (2) when the System receives an order Response Time Interval. Current order in which they commenced. If a in a leg of the complex order that would subparagraph (c)(3) permits the COA Response is not fully executed at improve the SBBO on the same side as Exchange to determine whether Market- the end of the identified COA to which the COA-eligible order that initiated the Makers assigned to a class and Trading the COA Response was submitted, the COA to a price equal to or better than Permit Holders acting as agent for orders System cancels or rejects it at the the COA price, in which case the resting on the top of the COB in the conclusion of the specified COA. System terminates the COA and relevant series, or all Trading Permit In turn, when the first COA processes the COA-eligible order as Holders, may submit COA Responses. concludes, orders on the Simple Book described below, posts the new order to Currently, the Exchange permits all and unrelated complex orders that then the COB, and updates the SBBO. Trading Permit Holders to submit COA exist will be considered for These circumstances that cause a Responses, so the proposed rule change participation in the COA. If unrelated Response Time Interval to terminate is consistent with current C2 practice orders are fully executed in such COA, prior to the end of the above-noted time and merely eliminates this flexibility. then there will be no unrelated orders duration are substantively the same as A COA Response must specify the for consideration when the subsequent EDGX Rule 21.20(d)(5)(C)(i) and (ii). price, size, side of the market (i.e., a COA is processed (unless new unrelated EDGX Rule 21.20(d)(5)(C)(iii) does not response to a buy COA as a sell or a order interest has arrived). If instead apply to C2, as it relates to Priority response to a sell COA as a buy) and there is remaining unrelated order Customer orders, which have no COA auction ID for the COA to which interest after the first COA has been allocation priority on C2. Current C2 the User is submitting the COA allocated, then such unrelated order Rule 6.13(c)(8)(C) describes how the Response. While this is not included in interest will be considered for allocation System currently handles incoming current C2 rules, it is consistent with when the subsequent COA is processed. COA-eligible orders on the same side of System entry requirements for COA

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Responses. The System aggregates the COA response with priority. The The System enters any do-not-COA size of COA Responses submitted at the Exchange believes it is appropriate for order (or unexecuted portion) that same price for an EFID, and caps the complex orders to allocate in the same cannot execute against the individual size of the aggregated COA Responses at manner as simple orders. Additionally, leg markets or complex orders into the the size of the COA-eligible order. This on EDGX, COA responses and unrelated COB (if eligible for entry), and applies provision is similar to Cboe Options orders on the COB allocate in time a timestamp based on the time it enters Rule 6.53(d)(v), which caps order and priority, and Leg into the Simple Book the COB. The System cancels or rejects response sizes for allocation purposes to in pro-rata priority, as that is the only any do-not-COA order (or unexecuted prevent Trading Permit Holders from allocation algorithm available for simple portion) that would execute at a price taking advantage of a pro-rata allocation orders on EDGX. EDGX prioritizes outside of the SBBO, if not eligible for by submitting responses larger than the customer orders in the simple book. As entry into the COB, or in accordance COA-eligible order to obtain a larger discussed above, there will be no with the User’s instructions. Complex allocation from that order. customer priority on C2—this applies to orders resting on the COB may execute During the Response Time Interval, both the Simple Book and the COB. pursuant to proposed paragraph (e) COA Responses are not firm, and Users However, by trading with the legs first, following evaluation pursuant to can modify or withdraw them at any this provides protection to customer proposed paragraph (i), both as time prior to the end of the Response orders in the legs as well, and ensure no described below, and remain on the Time Interval, although the System complex orders will trade against the COB until they execute or are cancelled applies a new timestamp to any COB ahead of customer orders in the or rejected. modified COA Response (unless the legs. The proposed rule change is similar to modification was to decrease its size), Proposed subparagraph (d)(5)(B) current C2 Rule 6.13(b)(1). Additionally, which will result in loss of priority. The states the System enters any COA- the proposed rule change is Exchange does not display COA eligible order (or unexecuted portion) substantively the same as EDGX Rule Responses. At the end of the Response that does not execute at the end of the 21.20(c)(3)(B) and (5)(D), except for the Time Interval, COA Responses are firm COA into the COB (if eligible for entry), priority of execution. As discussed (i.e., guaranteed at their price and size). and applies a timestamp based on the above, on C2, complex orders will trade A COA Response may only execute time it enters the COB (see current C2 against the leg markets ahead of the against the COA-eligible order for the Rule 6.13(c)(6)). The System cancels or COB (including customer orders), but COA to which a User submitted the rejects any COA-eligible order (or will not prioritize customer orders on COA Response. The System cancels or unexecuted portion) that does not the leg markets. As discussed above, rejects any unexecuted COA Responses execute at the end of the COA if not this is consistent with C2’s allocation, (or unexecuted portions) at the eligible for entry into the COB or in which provides no customer priority. Proposed Rule 6.13(f)(1) states the conclusion of the COA. This is accordance with the User’s instructions. minimum increment for bids and offers substantively the same as current Once in the COB, the order may execute subparagraph (c)(7) and EDGX Rule on a complex order is $0.01, and the pursuant to proposed paragraph (e) 21.20(d)(4). components of a complex order may be following evaluation pursuant to Proposed subparagraph (d)(5) executed in $0.01 increments, regardless describes how COA-eligible orders are proposed paragraph (i), both as of the minimum increments otherwise processed at the end of the Response described below, and remain on the applicable to the individual components Time Interval. At the end of the COB until they execute or are cancelled of the complex order. This is consistent Response Time Interval, the System or rejected. These provisions are with current and proposed Rule 6.4. executes a COA-eligible order (in whole substantively the same as EDGX Rule Proposed Rule 6.13(f)(2) provides the or in part) against contra side interest in 21.20(d)(5)(A) and (B). System does not execute a complex price priority. If there is contra side Proposed Rule 6.13(e) describes how order pursuant to Rule 6.13 at a net interest at the same price, the System the System will handle do-not-COA price (1) that would cause any allocates the contra side interest as orders (i.e. orders that do not initiate a component of the complex strategy to be follows: COA upon entry to the System) and executed at a price of zero, (2) worse (1) Orders and quotes in the Simple orders resting in the COB. Upon receipt than the SBBO, (3) that would cause any Book for the individual leg components of a do-not-COA order, or if the System component of the complex strategy to be of the complex order through Legging determines an order resting on the COB executed at a price worse than the (subject to proposed paragraph (g), as is eligible for execution following individual component price on the described below), which the System evaluation as described below, the Simple Book, (4) worse than the price allocates in accordance with the priority System executes it (in whole or in part) that would be available if the complex in proposed Rule 6.12(a) applicable to against contra side interest in price order Legged into the Simple Book, or the class. priority. If there is contra side interest (5) ahead of orders on the Simple Book (2) COA Responses and unrelated at the same price, the System allocates without improving the BBO on at least orders posted to the COB, which the the contra side interest as follows: one component by at least $0.01. The System allocates in accordance with the (1) Orders and quotes in the Simple System executes complex orders priority in proposed Rule 6.12(a) Book for the individual leg components without consideration of any prices for applicable to the class. of the complex order through Legging the complex strategy that might be This allocation is similar to the (as described below), which the System available on other exchanges trading the current allocation priority on C2 allocates in accordance with the priority same complex strategy; provided, following a COA, as set forth in current in proposed Rule 6.12(a) applicable to however, that such complex order price C2 Rule 6.13(c)(5), except the proposed the class. may be subject to the drill-through price rule allocates COA-eligible orders to (2) Complex orders resting on the protection described below. This is COA responses and resting complex COB, which the System allocates in substantively the same as EDGX Rule orders in the same priority as it does accordance with the priority in 21.20(c). However, because complex simple orders, rather than providing proposed Rule 6.12(a) applicable to the orders will execute against the leg public customer complex orders and class. markets (including customer orders on

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the legs) prior to executing against equaled or exceeded and the they are executed when entitled. complex orders at the same price, participant’s quotes are removed by the Additionally, this process ensures the complex orders will not execute ahead Risk Monitor Mechanism in all series of System will not execute any component of a customer order on the legs. that option class. Thus the Legging of of a complex order at a price that would Additionally, this provision is complex orders presents higher risk to trade through an order on the Simple substantively the same as current C2 Market-Makers and other liquidity Book. The Exchange believes that this is Rules 6.12(g) and 6.13(c)(5). providers as compared to simple orders reasonable because it prevents the Proposed paragraph (g) adopts being entered in multiple series of an components of a complex order from restrictions on the ability of complex options class in the simple market, as it trading at a price that is inferior to a orders to Leg into the Simple Book. can result in such participants price at which the individual Specifically, a complex order may Leg exceeding their established risk components may be traded on the into the Simple Book pursuant to thresholds by a greater number of Exchange or ahead of the leg markets. proposed subparagraphs (d)(5)(A)(i) and contracts. Although Market-Makers and • If there is a zero NBO for any leg, (e)(i), subject to the restrictions in other liquidity providers can limit their the System replaces the zero with a proposed paragraph (g), if it can execute risk through the use of the Risk Monitor price $0.01 above NBB to calculate the in full or in a permissible ratio and if Mechanism, the participant’s quotes are SNBBO, and complex orders with any it has no more than a maximum number not removed until after a trade is buy legs do not Leg into the Simple of legs (which the Exchange determines executed. As a result, because of the Book. If there is a zero NBB, the System on a class-by-class basis and may be way complex orders leg into the regular replaces the zero with a price of $0.01, two, three or four), subject to the market as a single transaction, Market- and complex orders with any sell legs following restrictions: Makers and other liquidity providers do not Leg into the Simple Book. If there (1) All two leg COA-eligible Customer may end up trading more than the is a zero NBB and zero NBO, the System complex orders may Leg into the Simple cumulative risk thresholds they have replaces the zero NBB with a price of Book without restriction. established, and are therefore exposed $0.01 and replaces the zero NBO with (2) Complex orders for any other to greater risk. The Exchange believes a price of $0.02, and complex orders do Capacity with two option legs that are that Market Makers and other liquidity not Leg into the Simple Book. The both buy or both sell and that are both providers may be compelled to change SBBO and SNBBO may not be calls or both puts may not Leg into the their quoting and trading behavior to calculated if the NBB or NBO is zero (as Simple Book. These orders may execute account for this additional risk by noted above, if the best bid or offer on against other complex orders on the widening their quotes and reducing the the Exchange is not available, the COB. size associated with their quotes, which System uses the NBB or NBO when (3) All complex orders with three or would diminish the Exchange’s quality calculating the SBBO). As discussed four option legs that are all buy or all of markets and the quality of the above, permissible execution prices are sell (regardless of whether the option markets in general. based on the SBBO. If the SBBO is not legs are calls or puts) may not Leg into Proposed Rule 6.13(h) contains available, the System cannot determine the Simple Book. These orders may additional provisions regarding the permissible posting or execution pricing execute against other complex orders on handling of complex orders: for a complex order (which are based on the COB. • A complex market order or a limit the SBBO), which could reduce The proposed rule change is order with a price that locks or crosses execution opportunities for complex substantively the same as EDGX Rule the then-current opposite side SBBO orders. If the System were to use the 21.20(c)(2)(F), except it does not include and does not execute because the SBBO zero bid or offer when calculating the restrictions related to Customer orders, is the best price but not available for SBBO, it may also result in executions because Customer priority will not execution (because it does not satisfy at erroneous prices (since there is no apply on C2. These restrictions serve the the complex order ratio or the complex market indication for the price at which same purpose as the protection included order cannot Leg into the Simple Book) the leg should execute). For example, if in current C2 Rule 6.13(c)(2)(A), which enters the COB with a book and display a complex order has a buy leg in a series is to ensure that Market-Makers price that improves the then-current with no offer, there is no order in the providing liquidity do not trade above opposite side SBBO by $0.01. If the leg markets against which this leg their established risk tolerance levels. SBBO changes, the System continuously component could execute. This is Currently, liquidity providers (typically reprices the complex order’s book and consistent with functionality on EDGX, Market Makers, though such display price based on the new SBBO and the proposed rule change is merely functionality is not currently limited to (up to the limit price, if it is a limit including this detail in the C2 rules. registered Market Makers) in the Simple order), subject to the drill-through price This is also consistent with the Book are protected by way of the Risk protection described in Rule 6.14(b), proposed rule change (and EDGX rule) Monitor Mechanism by limiting the until: (A) The complex order has been that states complex order executions are number of contracts they execute as executed in its entirety; or (B) the not permitted if the price of a leg would described above. The Risk Monitor complex order (or unexecuted portion) be zero. Additionally, this is similar to Mechanism allows Market-Makers and of the complex order is cancelled or the proposed rule change described other liquidity providers to provide rejected. This provision is substantively above to improve the posting price of a liquidity across potentially hundreds of the same as EDGX Rule 21.20(c)(4) and complex order by $0.01 if it would options series without executing the full (6), except it improves the SBBO by otherwise lock the SBBO. The proposed cumulative size of all such quotes before $0.01 in all cases. This is consistent rule change is a reasonable process to with the proposed C2 rule to trade with being given adequate opportunity to ensure complex orders receive the leg markets ahead of the COB. The adjust the price and/or size of their execution opportunities, even if there is purpose of using the calculated SBBO is quotes. no interest in the leg markets.39 All of a participant’s quotes in each to enable the System to determine a option class are considered firm until valid trading price range for complex 39 Cboe Options Rule 6.13(b)(vi) states if a market such time as the Risk Monitor strategies and to protect orders resting order is received when the national best bid in a Mechanism’s threshold has been on the Simple Book by ensuring that series is zero, if the Exchange best offer is less than

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Proposed Rule 6.13(i) states the instructions to cancel its open complex The proposed rule change deletes System evaluates an incoming complex orders upon a Regulatory Halt, for current Rule 6.13, Interpretation and order upon receipt after the open of participation in the re-opening of the Policy .02, which describes how orders trading to determine whether it is a COB as described below. A Trading resting on the COB may initiate a COA COA-eligible order or a do-not-COA Permit Holder’s complex orders are under certain conditions. This ‘‘re- order and thus whether it should be cancelled unless the Trading Permit COA’’ functionality will not be available processed pursuant to proposed Holder instructed the Exchange not to on C2 following the technology paragraph (d) or (e), respectively. The cancel its orders. The COB will remain migration. However, as described above, System also re-evaluates a complex available for Users to enter and manage the System continuously evaluates order resting on the COB (including an complex orders that are not cancelled. orders resting on the COB for execution order (or unexecuted portion) that did Incoming complex orders that could opportunities against incoming complex not execute pursuant to proposed otherwise execute or initiate a COA in orders or orders in the leg markets. paragraph (d) or (e) upon initial receipt) the absence of a halt will be placed on Pursuant to EDGX Rule 21.20(c)(5)(B), (1) at time the COB opens, (2) following the COB. Incoming complex orders with continual evaluation of orders on the a halt, and (3) during the trading day a time in force of IOC will be cancelled COB does not determine whether orders when the leg market price or quantity or rejected. may be subject to another COA. changes to determine whether the If, during a COA, any component(s) Therefore, the proposed rule change is complex order can execute (pursuant to and/or the underlying security of a consistent with EDGX rules, which do proposed Rule 6.13(e) described above), COA-eligible order is halted, the COA not permit ‘‘re-COA.’’ should be repriced (pursuant to ends early without trading and all COA Proposed Interpretation and Policy proposed paragraph (h)), should remain Responses are cancelled or rejected. .02 states a Trading Permit Holder’s resting on the COB, or should be Remaining complex orders will be dissemination of information related to cancelled. This is consistent with EDGX placed on the COB if eligible or will be COA-eligible orders to third parties or a Rule 21.20(c)(2)(G) and (c)(5). This cancelled. When trading in the halted pattern or practice of submitting orders evaluation process ensures that the component(s) and/or underlying that cause a COA to conclude early will System is monitoring and assessing the security of the complex order resumes, be deemed conduct inconsistent with COB for incoming complex orders, and the System will re-open the COB just and equitable principles of trade changes in market conditions or events pursuant to proposed paragraph (c) (as and a violation of Rule 4.1. This that cause complex orders to reprice or described above). The System queues combines EDGX Rule 21.20, execute, and conditions or events that any complex orders designated for a re- Interpretation and Policy .02 and result in the cancellation of complex opening following a halt until the halt current C2 Rule 6.13, Interpretation and orders on the COB. This ensures the has ended, at which time they are Policy .03 into a single provision integrity of the Exchange’s System in eligible for execution in the Opening regarding behavior related to COAs that handling complex orders and results in Process. This proposed rule change may be deemed inconsistent with just a fair and orderly market for complex regarding the handling of complex and equitable principles of trade. orders on the Exchange. orders during a trading halt is Stock-option orders will not be Proposed Rule 6.13(j) states the substantively the same as EDGX Rule available on C2 following the System cancels or rejects a complex 21.20, Interpretation and Policy .05. technology migration, so the proposed market order it receives when the The Exchange believes the proposed rule change deletes all provisions underlying security is subject to a limit provisions described above regarding related to, and references to, stock- up-limit down state, as defined in Rule complex order handling and executions option orders from Rule 6.13 (including 6.39. If during a COA of a COA-eligible provide a framework that will enable Interpretation and Policy .06) and market order, the underlying security the efficient trading of complex orders elsewhere in the Rules. Stock-option enters a limit up-limit down state, the in a manner that is similar to current C2 order functionality is not currently System terminates the COA without functionality and substantively the same available on C2, so this proposed rule trading and cancels or rejects all COA as EDGX functionality. As described change will have no impact on C2 Responses. This is consistent with above, complex order executions are market participants. handling of simple market orders during designed to work in concert with a As discussed above, proposed Rule a limit up-limit down state, and is priority of allocation that continues to 6.13 regarding complex orders is substantively the same as EDGX Rule respect the priority of allocations on the substantially the same as EDGX Rule 21.20(d)(8) and current Rule 6.13(c)(9). Simple Book while protecting orders in 21.20 or current Rule 6.13, except for Proposed Rule 6.13(k) describes the the Simple Book. provisions related to priority, as C2 will impact of trading halts on the trading of Proposed Interpretation and Policy not have customer priority. Proposed complex orders. If a trading halt exists .01 states Market-Makers are not Rule 6.13 has nonsubstantive for the underlying security or a required to quote on the COB. Complex differences compared to EDGX Rule component of a complex strategy, strategies are not subject to any quoting 21.20, which differences are intended to trading in the complex strategy will be requirements applicable to Market- simplify the description of complex suspended. The System queues a Makers in the simple market. The orders, re-organize the provisions, and Trading Permit Holder’s open orders Exchange does not take into account eliminate duplicative language. during a Regulatory Halt, unless the Market-Makers’ volume executed in Current C2 Rule 6.14 describes SAL, Trading Permit Holder entered complex strategies when deterring an electronic auction mechanism that whether Market-Makers meet their provides price improvement for simple or equal to $0.50, the Cboe Options system enters quoting obligations in the simple orders. Pursuant to this rule, the the market order into the book as a limit order with market. This codifies current C2 Exchange may determine whether to a price equal to the minimum trading increment for practice and is identical to EDGX Rule make SAL available on C2. The the series. Similar to the proposed rule change, this 40 is an example of an exchange modifying an order 21.20, Interpretation and Policy .01. proposed rule change deletes this rule price to provide execution opportunities for the order when there is a lack of contra-side interest 40 The proposed rule change deletes current C2 determinations made by the Exchange, which is when the order is received by the exchange. Rule 6.13, Interpretation and Policy .01 regarding being replaced by proposed Rule 1.2.

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(and makes conforming changes single rule, and states the System’s complex orders (proposed paragraph throughout the rules, including deleting acceptance and execution of orders and (b)), and all (i.e. simple and complex) references to SAL and Rule 6.14), as this quotes pursuant to the Rules, including orders (proposed paragraph (c)). functionality will not be available on C2 proposed Rules 6.11 through 6.13, are The following table identifies the subject to the price protection following the technology migration. current price protection mechanism and Currently, the Exchange has not made mechanisms and risk controls in risk control, the current C2 Rule, the SAL available for any classes on C2. proposed Rule 6.14. Proposed Rule 6.14 Proposed C2 Rule 6.14 consolidates categorizes these mechanisms and proposed C2 Rule, the corresponding all order and quote price protection controls as ones applicable to simple EDGX rule (if any), and any proposed mechanisms and risk controls into a orders (proposed paragraph (a)), changes:

Price protection/ Current Proposed risk control C2 rule C2 rule EDGX rule Proposed changes

Handling of market 6.12(h) ...... 6.14(a)(1) ... N/A ...... Pursuant to the proposed rule change, the System cancels or rejects a orders received market order if there is no-bid and the Exchange best offer is less in no-bid series. than or equal to $0.50. Under current functionality, the System would treat the sell order as a limit order with a price equal to the minimum increment in this situation. The proposed rule change also expands the same protection to market orders in no-offer series. The Ex- change believes the proposed rule change will provide protection for these orders to prevent execution at potentially erroneous prices when a market order is entered in a series with no bid or offer. Market order 6.17(a)(1) ... 6.14(a)(2) ... 21.17(a) ...... The proposed functionality is generally the same as current functionality, NBBO width pro- except the acceptable amount away from NBBO a market order may tection. execute will be determined by a percentage away from the NBBO midpoint (subject to a minimum and maximum dollar amount) rather than specified dollar ranges based on premium, providing the Ex- change with flexibility it believes appropriate given previous experi- ence with risk controls. Buy order put 6.17(d) ...... 6.14(a)(3) ... 21.17(c) ...... The proposed rule change will apply to market order executions during check. the Opening Process, and deletes the call underlying value check in current Rule 6.17(d)(1)(B), as this functionality will not be available on C2’s new system following the technology migration. The proposed rule change also deletes references to auctions because C2 will have no simple order auctions following the migration. Drill-through pro- 6.17(a)(2) ... 6.14(a)(4) ... 21.17(d) ...... The proposed functionality is generally the same as current functionality, tection (simple). except the drill-through amount is a buffer amount determined by class and premium rather than a number ticks. The proposed rule change deletes the distinction between orders exposed via SAL or HAL, as those auction mechanisms will not be available on C2’s new system following the technology migration. The proposed functionality applies to Day orders, as well as GTD and GTC orders that reenter the Book from the prior trading day, but not IOC or FOK, as resting in the Book for a period of time is inconsistent with their purpose (which is to cancel if not executed immediately). Definitions of 6.13.04 ...... 6.14(b)(1) ... 21.20.04(a) ...... No substantive changes. vertical spread, butterfly spread, and box spread. Credit-to-debit pa- 6.13.04(b) ... 6.14(b)(2) ... 21.20.04(b) ...... No substantive changes. rameters. Debit/credit price 6.13.04(c) ... 6.17(b)(3) ... 21.20.04(c) ...... The proposed functionality is generally the same as current functionality, reasonability except the acceptable price is subject to a pre-set buffer amount, checks. which flexibility is consistent with EDGX functionality. The proposed rule change also makes an additional change to conform to a Cboe Options rule, as described below. Buy strategy pa- 6.13.04(d) ... 6.17(b)(4) ... 21.20.04(d) ...... The proposed functionality is generally the same as current functionality, rameters. except the net credit price is subject to a buffer amount (consistent with EDGX functionality). The proposed rule change deletes the mechanism’s applicability to sell strategies, as that functionality will not be available on C2 following the technology migration. Maximum value ac- 6.13.04(h) ... 6.17(b)(5) ... 21.20.04(e) ...... The proposed functionality is generally the same as current functionality, ceptable price except the price range is calculated using a buffer amount (consistent range. with EDGX functionality) rather than a percentage amount.

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Price protection/ Current Proposed risk control C2 rule C2 rule EDGX rule Proposed changes

Drill-through pro- N/A ...... 6.17(b)(6) ... 21.20.04(f) ...... The proposed functionality is generally the same as current functionality tection (complex). that applies to simple orders, and expands it to complex orders. The proposed rule change replaces market width parameter protection and acceptable percentage range parameter in current Rule 6.13.04(a) and (e), respectively, which currently protect C2 complex orders from executing at potentially erroneous prices too far away from the order’s price or the market’s best price. The proposed rule is substantially similar to EDGX Rule 21.20(c)(2)(E), except as follows: (1) The pro- posed rule change adds the concept that a COA-eligible order would initiate a COA at the drill-through price (this is consistent with current EDGX functionality and is additional detail in the C2 Rules) (the prices for complex strategy executions may be subject to the drill-through protection, which is intended to capture the concept that the price of a COA may be impacted by the drill-through protection; the proposed rule change makes this explicit in the C2 rules); and (2) describes how a change in the SBBO prior to the end of the time period but the complex order cannot Leg, and the new SBO (SBB) crosses the drill- through price, the System changes the displayed price of the complex order to the new SBO (SBB) minus (plus) $0.01, and the order will not be cancelled at the end of the time period (consistent with EDGX functionality, and the proposed rule change adds this detail to the C2 Rules). The proposed rule change merely permits an order to remain on the COB since the market reflects interest to trade (but not cur- rently executable due to Legging Restrictions) that was not there was not at the beginning of the time period, providing additional execution opportunities prior to cancellation. Limit Order Fat 6.13.04(g) 6.14(c)(1) ... 21.17(b) and The proposed functionality is generally the same as current functionality, Finger Check. and 21.20, Interpre- except the amount away from the NBBO a limit order price may be is 6.17(b). tation and Pol- a buffer amount rather than a number of ticks with no minimum, and icy .06. Exchange may determine whether the check applies to simple orders prior to the conclusion of the Opening Process (current rules codify pre-open application), providing the Exchange with flexibility it be- lieves appropriate given previous experience with risk controls. The proposed rule change does not apply to GTC or GTD orders that re- enter the Book from the prior trading day, as this check only applies to orders when the System receives them. The proposed rule change provides Users with ability to set a different buffer amount to accom- modate its own risk modeling; does not apply to adjusted series prior to the Opening Process, as prices may reflect the corporate action for the underlying but the previous day’s NBBO would not reflect that ac- tion. If the check applies prior to the Opening Process, the System compares the order’s price to the midpoint of the NBBO rather than the previous day’s closing price, which the Exchange believes is an- other reasonable price comparison; will no longer exclude ISOs, which is consistent with EDGX functionality. Maximum contract 6.17(h) ...... 6.14(c)(2) ... N/A ...... The proposed functionality is generally the same as current functionality, size. except the Exchange will set a default amount rather than permit User to set amount. The proposed rule change applies per port rather than acronym or login. The functionality to cancel a resting order or quote if replacement order or quote is entered will not be available on C2 following the technology migration (however, a User can enable can- cel on reject functionality described below to receive same result). Maximum notional N/A ...... 6.14(c)(3) ... Technical speci- Voluntary functionality similar to maximum contract size, except the Sys- value. fications. tem cancels or rejects an incoming order or quote with a notional value that exceeds the maximum notional value a User establishes for each of its ports. The proposed rule change provides an additional, voluntary control for Users to manage their order and execution risk on C2. Daily risk limits ...... N/A ...... 6.14(c)(4) ... Technical speci- Voluntary functionality pursuant to which a User may establish limits for fications. cumulative notional booked bid (‘‘CBB’’) or offer (‘‘CBO’’) value, and cumulative notional executed bid (‘‘CEB’’) or offer (‘‘CEO’’) value for each of its ports on a net or gross basis, or both, and may establish limits for market or limit orders (counting both simple and complex), or both. If a User exceeds a cutoff value (by aggregating amounts across the User’s ports), the System cancels or rejects incoming limit or market orders, or both, as applicable.41 Risk monitor mech- 6.17(g) and 6.14(c)(5) ... 6.36 ...... Similar functionality to current C2 quote risk monitor and order entry, anism. 8.12. execution, and price parameter rate checks, which will not be avail- able on C2 following the technology migration (discussed below) [sic].

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Price protection/ Current Proposed risk control C2 rule C2 rule EDGX rule Proposed changes

Cancel on reject .... N/A ...... 6.14(c)(6) ... Technical speci- Additional, voluntary control for Users to manage their order and execu- fications. tion risk on C2, pursuant to which the System cancels a resting order or quote if the System rejects a cancel or modification instruction (be- cause, for example, it had an invalid instruction) for that resting order or quote. The proposed rule change is consistent with the purpose of a cancel or modification, which is to cancel the resting order or quote, and carries out this purpose despite an erroneous instruction on the cancel/modification message. Kill switch ...... 6.17(i) ...... 6.14(c)(7) ... 22.11 ...... The proposed functionality is generally the same as current functionality, except Users may apply it to different categories of orders by EFID rather than acronym or login (consistent with new System functionality), and block of incoming orders or quotes is a separate re- quest by Users. Cancel on dis- 6.48 ...... 6.14(c)(8) ... Technical speci- The proposed functionality is generally the same as current technical connect. fications. disconnect functionality, except it is the same for both APIs on the new C2 system. The proposed rule change will continue to protect Users against erroneous executions if it appears they are experi- encing a system disruption. The proposed functionality will no longer provide TPHs with ability to determine length of interval, but does pro- vide additional flexibility with respect to which order types may be cancelled—current functionality permits a choice of market-maker quotes and day orders, while the proposed functionality permits a choice of day and GTC/GTD orders, or just day orders. Block new orders .. N/A ...... N/A ...... 22.11 ...... Similar to automatic functionality that occurs on C2 currently when a Trading Permit Holder uses kill switch functionality. The proposed rule change merely provides a separate way to achieve this result on the new System, providing Users with flexibility regarding how to manage their resting orders and quotes. Duplicate order N/A ...... N/A ...... Technical speci- Additional, voluntary control for Users to manage their order and execu- protection. fications. tion risk on C2. The proposed rule change protects Users against execution of multiple orders that may have been erroneously entered.

The proposed rule change deletes the date but different exercise prices or the (iii) number of executions (‘‘count’’); mechanisms related to execution of same exercise price but different and quotes that lock or cross the NBBO and expiration dates. (iv) number of contracts executed as quotes inverting the NBBO. Since there Additionally, the proposed rule a percentage of number of contracts will be no separate order and quote change deletes the exception for outstanding within an Exchange- functionality, orders submitted by complex orders with European-style designated time period or during the Market-Makers will be subject to the exercise. The Exchange no longer trading day, as applicable protections described above. believes this exception is necessary and (‘‘percentage’’), which the System Under the current EDGX debit/credit will expand this check to index options determines by calculating the price reasonability check (see EDGX with all exercise styles. percentage of a User’s outstanding Rule 21.20.04(c)), the System only pairs contracts that executed on each side of The proposed Risk Monitor calls (puts) if they have the same the market during the time period or Mechanism is substantively the same as expiration date but different exercise trading day, as applicable, and then the functionality currently available on prices or the same exercise price but summing the series percentages on each EDGX. Because there will no longer be different expiration dates. Under the side in the class. separate order and quote functionality current C2 debit/credit reasonability When the System determines the on C2 following the technology check, with respect to pairs with volume, notional, count, or percentage: migration, there will no longer be different expiration the System pairs of (i) Exceeds a User’s class limit within separate mechanisms to monitor entry calls (puts) with different expiration the interval or the absolute limit for the and execution rates, as there are on C2 dates if the exercise price for the call class, the Risk Monitor Mechanism today. Each User may establish limits (put) with the farther expiration date is cancels or rejects such User’s orders or for the following parameters in the lower (higher) than the exercise price quotes in all series of the class and Exchange’s counting program. The for the nearer expiration date in cancels or rejects any additional orders System counts each of the following addition to those with different or quotes from the User in the class within a class (‘‘class limit’’) and across expiration dates and the same exercise until the counting program resets (as all classes for an EFID (‘‘firm limit’’) price. The proposed rule change amends described below). over a User-established time period this check to pair orders in the same (‘‘interval’’) on a rolling basis up to five (ii) exceeds a User’s firm limit within manner as EDGX, which is to pair calls minutes (except as set forth in (iv) the interval or the absolute limit for the (puts) if they have the same expiration below) and on an absolute basis for a firm, the Risk Monitor Mechanism trading day (‘‘absolute limits’’): cancels or rejects such User’s orders or 41 The System calculates a notional cutoff on a quotes in all classes and cancels or gross basis by summing CBB, CBO, CEB, and CEO. (i) Number of contracts executed rejects any additional orders or quotes The System calculates a notional cutoff on a net (‘‘volume’’); basis by summing CEO and CBO, then subtracting from the User in all classes until the the sum of CEB and CBB, and then taking the (ii) notional value of executions counting program resets (as described absolute value of the resulting amount. (‘‘notional’’); below).

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The Risk Monitor Mechanism will with the interest of a fair and orderly • repeats the process described above also attempt to cancel or reject any market. by executing against the Book and/or orders routed away to other exchanges. The proposed rule change moves the routing to the other options exchanges The System processes messages in the provision regarding the Exchange’s until the original, incoming order is order in which they are received. ability to share User-designated risk executed in its entirety; Therefore, it will execute any settings in the System with a Clearing • repeats the process described above marketable orders or quotes that are Trading Permit Holder that clears by executing against the Book and/or executable against a User’s order or Exchange transactions on behalf of the routing to the other options exchanges quote and received by the System prior User from the introduction of current until the original, incoming order is to the time the Risk Monitor Mechanism Rule 6.17 to proposed Rule 6.14, executed in its entirety, or, if not is triggered at the price up to the size Interpretation and Policy .02. executed in its entirety and a limit of the User’s order or quote, even if such Proposed Rule 6.15 replaces current order, posts the unfilled balance of the execution results in executions in Rule 6.36 regarding routing of orders to order on the Book if the order’s limit excess of the User’s parameters. other exchanges. C2 will continue to The System will not accept new support orders that are designated to be price is reached; or orders or quotes from a User after a class routed to the NBBO as well as orders • to the extent the System is unable limit is reached until the User submits that will execute only within C2 (as to access a Protected Quotation and an electronic instruction to the System discussed above). Orders designated to there are no other accessible Protected to reset the counting program for the execute at the NBBO will be routed to Quotations at the NBBO, cancels or class. The System will not accept new other options markets for execution rejects the order back to the User, orders or quotes from a User after a firm when the Exchange is not at the NBBO, provided, however, that this provision limit is reached until the User manually consistent with the Options Order does not apply to Protected Quotations notifies the Trade Desk to reset the Protection and Locked/Crossed Market published by an options exchange counting program for the firm, unless Plan. Subject to the exceptions against which the Exchange has the User instructs the Exchange to contained in Rule 6.81, the System will declared self-help. permit it to reset the counting program ensure that an order will not be Currently, C2 automatically routes by submitting an electronic message to executed at a price that trades through intermarket sweep orders, consistent the System. The Exchange may restrict another options exchange. An order that with the definition in Rule 6.80(8). This the number of User class and firm resets is designated by a Trading Permit routing process is functionally per second. Holder as routable will be routed in equivalent to the current C2 routing The System counts executed COA compliance with applicable Trade- process, and referred to as SWPA and is responses as part of the Risk Monitor Through restrictions. Any order entered specifically described in proposed Rule Mechanism. The System counts with a price that would lock or cross a 6.15(a)(2)(B). Specifically, SWPA is a individual trades executed as part of a Protected Quotation that is not eligible routing option (which will be the complex order when determining for either routing, or the Price Adjust default routing option following whether the volume, notional, or count process described above, will be migration, and thus, if no other routing limit has been reached. The System cancelled. option is specified by a User, a User’s counts the percentage executed of a Proposed Rule 6.15 states for System order subject to routing will be handled complex order when determining securities, the order routing process is in the same way it is today). Following whether the percentage limit has been available to Users from 9:30 a.m. until the technology migration, C2 will offer reached. market close. Users can designate an additional routing options identical to The Risk Monitor Mechanism order as either available or not available the routing options offered by EDGX.42 providers Users with similar ability to for routing. Orders designated as not Routing options may be combined with manage their order and execution risk to available for routing (either Book Only all available Order Instructions and the quote risk monitor and rate checks or Post Only) are processed pursuant to Times-in-Force, with the exception of currently available on C2. It merely uses Rule 6.12. For an order designated as those whose terms are inconsistent with different parameters and modifies the available for routing, the System first the terms of a particular routing option. functionality to conform C2’s new checks for the Book for available The System considers the quotations System. contracts for execution against the order only of accessible markets. The term With respect to various price pursuant to Rule 6.12. Unless otherwise ‘‘System routing table’’ refers to the protections and risk controls in current instructed by the User, the System then proprietary process for determining the Rules 6.13, Interpretation and Policy designates the order (or unexecuted specific options exchanges to which the .04, and 6.17, the Exchange has the portion) as IOC and routes it to one or System routes orders and the order in authority to provide intraday relief by more options exchanges for potential which it routes them. The Exchanges widening or inactivating one or more of execution, per the User’s instructions. reserves the right to maintain a different the parameter settings for the After the System receives responses to System routing table for different mechanisms in those rules. This the order, to the extent it was not routing options and to modify the authority is included in proposed executed in full through the routing System routing table at any time Interpretation and Policy .01, to provide process, the System processes the order without notice. These additional routing this flexibility for all price protections (or unexecuted portion) as follows, and risk controls for which the depending on parameters set by the Exchange sets parameters, providing the User when the incoming order was 42 Users may mark orders as eligible for routing (with one of the four proposed routing instructions) Exchange with flexibility it believes originally entered: or not eligible for routing (with either a Book Only appropriate given previous experience • Cancels the order (or unexecuted or Post Only instruction). Separately, both routable with risk controls. The Exchange will portion) back to the User; and non-routable orders may be marked with re- continue to make and keep records to • posts the unfilled balance of the pricing instructions (either Price Adjust (single or multiple) and Cancel Back), which instruction the document all determinations to grant order to the Book, subject to the Price System will apply when it receives the order from intraday relief, and periodically review Adjust process described in proposed the User or receives any unexecuted portion of an these determinations for consistency Rule 6.12(b), if applicable. [sic] order upon returning from routing.

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options are ROUT, destination specific, unexecuted portion), the order receives of orders are deemed to be erroneous or and directed ISO: a new time stamp reflected the time the duplicative, would cause the entering • ROUT is a routing option under System receives the returned order. Trading Permit Holder’s credit exposure which the System checks the Book for Proposed Rule 6.15(c) states Users to exceed a preset credit threshold, or available contracts to execute against an whose orders are routed to other options are noncompliant with applicable pre- order and then sends it to destinations exchanges must honor trades of those trade regulatory requirements, Cboe on the System routing table. A User may orders executed on other options Trading will reject the orders prior to select either Route To Improve (‘‘RTI’’) exchanges to the same extent they routing and/or seek to cancel any orders or Route To Fill (‘‘RTF’’) for the ROUT would be required to honor trades of that have been routed. This provision is routing option. RTI may route to those orders if they had executed on the the same as EDGX Rule 21.9(f), and multiple destinations at a single price Exchange. These provisions are currently applies to Cboe Trading. level simultaneously while RTF may consistent with current C2 functionality, The proposed rule, including the route to multiple destinations and at and the proposed rule change adds this various routing options, is substantially multiple price levels simultaneously. detail to the C2 Rules. They are also the same as EDGX Rule 21.9. The • Destination specific is a routing substantively the same as EDGX Rule various routing options will provide option under which the System checks 21.9(b) and (c). Users with additional flexibility to the Book for available contracts to C2 will route orders in options via instruct the Exchange how to handle the execute against an order and then sends Cboe Trading, which will serve as the routing of their orders. The Re-Route it to a specific away options exchange. Outbound Router of the Exchange, as instructions will provide unexecuted • Directed ISO is a routing option discussed above. The Outbound Router orders resting on the Book with under which the System does not check will route orders in options listed and additional execution opportunities. The the Book for available contracts and open for trading on C2 to other options proposed routing process and options sends the order to another options exchanges pursuant to C2 Rules solely are identical to those available on exchange specified by the User. It is the on behalf of C2. The Outbound Router EDGX. enter Trading Permit Holder’s is subject to regulation as a facility of Current C2 Rule 6.18 describes HAL, responsibility, not the Exchanges the Exchange, including the a feature that automates handling of responsibility, to comply with the requirement to file proposed rule orders not at the NBBO by auctioning requirements relating to Intermarket changes under Section 19 of the them at the NBBO for potential price Sweep Orders. Exchange Act. Use of Cboe Trading or improvement on the Exchange prior to The Exchange also proposes to offer Routing Services as described below to routing. Pursuant to this rule, the two options for Re-Route instructions, route orders to other market centers is Exchange may determine whether to Aggressive Re-Route and Super optional. Parties that do not desire to make HAL available on C2. The Aggressive Re-Route, either of which use Cboe Trading or other Routing proposed rule change deletes this rule can be assigned to routable orders: Services provided by the Exchange must (and makes conforming changes • Pursuant to the Aggressive Re-Route designate orders as not available for throughout the rules, including deleting instruction, if the remaining portion of routing. references to HAL and Rule 6.18), as a routable order has been posted to the In the event the Exchange is not able this functionality will not be available Book pursuant proposed paragraph to provide Routing Services through its on C2 following the technology (a)(1) above, if the order’s price is affiliated broker-dealer, the Exchange migration. subsequently crossed by the quote of will route orders to other options The proposed rule change deletes another accessible options exchange, the exchanges in conjunction with one or current C2 Rule 6.19 regarding types of System routes the order to the crossing more routing brokers that are not order formats, as these formats are options exchange if the User has affiliated with the Exchange. C2 does available on the current C2 system but selected the Aggressive Re-Route not currently have an affiliated broker- will not be applicable on C2’s new instruction. dealer that provides routing services, system following the technology • Pursuant to the Super Aggressive and thus it currently routes orders to migration. Information regarding order Re-Route instruction, to the extent the other options exchanges in conjunction formats are available in technical unfilled balance of a routable order has with one or more routing brokers not specifications on the Exchange’s been posted to the Book pursuant to affiliated with the Exchange, as website.43 subparagraph (a)(1) above, if the order’s provided in current Rule 6.36(a). In Proposed C2 Rule 6.28 states the price is subsequently locked or crossed connection with Routing Services, the System sends to a User aggregated and by the quote of another accessible same conditions will apply to routing individual transaction reports for the options exchange, the System routes the brokers that currently apply to C2 User’s transactions, which reports order to the locking or crossing options routing brokers pursuant to current Rule include transaction details; the contra exchange if the User has selected the 6.36(a) (which are proposed to be party’s EFID, clearing Trading Permit Super Aggressive Re-Route instruction. moved to Rule 6.15(e)) and are the same Holder account number, and Capacity; Proposed Rule 6.15(b) states the as EDGX Rule 21.9(e). and the name of any away exchange if System does not rank or maintain in the Proposed Rule 6.15(f) states in an order was routed for execution. The Book pursuant to Rule 6.12 orders it has addition to the Rules regarding routing Exchange reveals a User’s identity (1) routed to other options exchanges, and to away options exchanges, Cboe when a registered clearing agency ceases therefore those orders are not available Trading has, pursuant to Rule 15c3–5 to act for a participant, or the User’s to execute against incoming orders. under the Exchange Act, implemented Clearing Trading Permit Holder, and the Once routed by the System, an order certain tests designed to mitigate the registered clearing agency determines becomes subject to the rules and financial and regulatory risks associated not to guarantee the settlement of the procedures of the destination options with providing Trading Permit Holders User’s trades, or (2) for regulatory exchange including, but not limited to, with access to away options exchanges. purposes or to comply with an order of order cancellation. If a routed order (or Pursuant to the policies and procedures unexecuted portion) is subsequently developed by Cboe Trading to comply 43 See http://markets.cboe.com/us/options/ returned to the Exchange, the order (or with Rule 15c3–5, if an order or series support/technical/.

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an arbitrator or court. C2 currently • occurrence of a System technical other unusual circumstance that may sends out transaction reports containing failure or failures including, but not threaten the ability to conduct business similar information, and the Exchange limited to, the failure of a part of the on the Exchange, which is consistent believes including this information in central processing system, a number of with current Rule 6.45(a). the Rules will provide more Trading Permit Holder applications, or Proposed Rule 6.34(b) states Trading transparency to market participants the electrical power supply to the Permit Holders that contribute a about these reports. The proposed rule System itself or any related system (the meaningful percentage of the change is substantively the same as Exchange believes this broader factor Exchange’s overall volume must EDGX Rule 21.10 and is consistent with regarding system functionality covers connect to the Exchange’s backup current Exchange and options industry the current factor in paragraph (a)(4) systems and participate in functional practices, including the fact that regarding the status of a rotation, which and performance testing as announced clearing information available through is a system process). by the Exchange, which will occur at OCC provides contra-party information, As the current rule permits the least once every 12 months. The as well as the ability of a User to Exchange to consider factors other than Exchange has established the following disclose its identify on orders. those currently listed, including the two standards to identify Trading Permit Current C2 Rule 6.49 describes the C2 factors proposed to be added (which the Holders that account for a meaningful Trade Match System (‘‘CTM’’) Exchange currently does consider when percentage of the Exchange’s overall functionality available on C2’s current determining whether to halt a class), the volume and, taken as a whole, the System, which permits Trading Permit proposed rule change is consistent constitute the minimum necessary for Holders to update transaction reports. current Rule 6.32(a). The proposed rule the maintenance of fair and orderly The functionality available on C2’s change moves the provision in markets in the event of the activation of System following the technology Interpretation and Policy .02 to business continuity and disaster subparagraph (a)(1). The proposed rule recovery plans: migration is called the Clearing Editor. • The Clearing Editor, like CTM, allows change moves the provisions in current The Exchange will determine the percentage of volume it considers to be Trading Permit Holders to update Interpretations and Policies .01 and .05 meaningful for purposes of this Rule. executed trades on their trading date to proposed paragraph (c). The proposed rule change adds • The Exchange will measure volume and revise them for clearing. The proposed paragraph (b), which states if executed on the Exchange on a quarterly Clearing Editor may be used to correct the Exchange determines to halt trading, basis. The Exchange will also certain bona fide errors. Trading Permit all trading in the effected class(es) will individually notify all Trading Permit Holders may change the following fields be halted, and the System cancels all Holders quarterly that are subject to this through the Clearing Editor: executing orders in the class(es) unless a User paragraph based on the prior calendar firm and contra firm; executing broker entered instructions to cancel all orders quarter’s volume. and contra broker; CMTA; account and except GTC and GTD orders or not • If a Trading Permit Holder has not subaccount (not just market-maker cancel orders during a halt. C2 previously been subject to the account and subaccount, as is the case disseminates through its trading requirements of this paragraph, such currently on CTM): Customer ID; facilities and over OPRA a symbol with Trading Permit Holder will have until position effect (open/close); or Capacity respect to the class(es) indicating that the next calendar quarter before such (because there will be no customer trading in the class(es) has been halted. requirements are applicable. priority on C2, there is no need to The Exchange makes available to Proposed Rule 6.34(c) states all restrict Capacity changes as set forth in vendors a record of the time and Trading Permit Holders may connect to current Rule 6.49). The proposed rule duration of the halt. Following the the Exchange’s backup systems and change deletes Rule 6.49(b), which are technology migration, C2 will have participate in testing of such systems. fields Trading Permit Holders may functionality availability that permits Current Rule 6.45 similarly requires change only if they provide notice to the Trading Permit Holders to enter a certain Trading Permit Holders Exchange, as Clearing Editor does not standing instruction regarding the designated by the Exchange to connect permit Trading Permit Holders to handling of its orders during a halt. The to back-up systems and participate in change these fields. If a Trading Permit remainder of proposed paragraph (b) is testing (current Rule 6.34(f) also Holder must change the series, quantity, consistent with C2’s current practice. requires participation in mandatory buy or sell, or premium price, it must The proposed paragraph (b) is also systems testing). The proposed rule contact the Exchange pursuant to substantively the same as EDGX Rule change designates different but proposed Rule 6.29 regarding obvious 20.3(b). reasonable criteria for determining errors. Current Rule 6.49(c) and C2’s new technology platform is which Trading Permit Holders must Interpretation and Policy .01 are moved currently the platform for EDGX and participate in mandatory testing. to Rule 6.31(c) and Interpretation and other Cboe Affiliated Exchanges, and Proposed paragraphs (b) and (c) are Policy .01 with no substantive changes. thus has an established disaster consistent with Regulation SCI C2 Rule 6.32 describes when the recovery plan. Therefore, the proposed requirements, which apply to certain Exchange may halt trading in a class rule change deletes the majority of C2’s self-regulatory organizations (including and is substantially similar to EDGX disaster recovery provisions, contained the Exchange), alternative trading Rules 20.3 and 20.4. Current Rule in current Rules 6.45 and 6.34(f) systems (‘‘ATSs’’), plan processors, and 6.32(a) lists various factors, among (regarding mandatory testing), and exempt clearing agencies (collectively, others, the Exchange may consider adopts proposed Rule 6.34, which is ‘‘SCI entities’’), and requires these SCI when determining whether to halt substantially similar to EDGX Rule 2.4. entities to comply with requirements trading in a class, but adds the following Proposed Rule 6.34 states the Exchange with respect to the automated systems two to be consistent with EDGX Rule maintains business continuity and central to the performance of their 20.3: disaster recovery plans, including regulated activities. The Exchange takes • Occurrence of an act of God or other backup systems, it may activate to pride in the reliability and availability event outside the Exchange’s control; maintain fair and orderly markets in the of its systems. C2 has, and the Cboe and event of a systems failure, disaster, or Affiliate Exchanges that operate on the

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technology platform to which C2 will of up to but no more than one second Holder or any other third party of any migrate have, put extensive time and in order to control the number of quotes of the terms of the order. resources toward planning for system the Exchange disseminates. Cboe While these provisions are not failures and already maintain robust Options Rule 5.4, Interpretation and currently stated in the C2 Rules, they business continuity and disaster Policy .13 (which is incorporated by are consistent with the C2’s recovery BC/DR plans consistent with reference into C2’s Rules) permits the interpretation of current Rule 6.50. the Rule. Exchange to delist any class Current C2 Rule 6.50 is substantively Propose Rule 6.35 describes steps the immediately if the class is open for the same as EDGX Rule 22.12, and the Exchange may take to mitigate message trading on another national securities following proposed Interpretations and traffic, based on C2’s traffic with respect exchange, or to not open any additional Policies .01 through .04 are to target traffic levels and in accordance series for trading if the class is solely substantively the same as EDGX Rule with C2’s overall objective of reducing open for trading on C2. This provision 22.12, Interpretations and Policies .01 both peak and overall traffic. First, the achieves the same purpose as EDGX through .04. System does not send an outbound Rule 21.14(a), and thus it is unnecessary Current C2 Rule 6.51 describes the message 44 in a series that is about to be to add the EDGX provision to C2 Rules. Automated Improvement Mechanism sent if a more current quote message for The proposed rule change adds (‘‘AIM’’), an electronic auction the same series is available for sending, Interpretations and Policies .01 through mechanism that provides potential price but does not delay the sending of any .04 to Rule 6.50 regarding the order improvement for eligible incoming messages (referred to in proposed Rule exposure requirement: orders, and current C2 Rule 6.52 6.35 as ‘‘replace on queue’’). Second, the • Rule 6.50 prevents a Trading Permit describes the Solicitation Auction System will prioritize price update Holder from executing agency orders to Mechanism (‘‘SAM’’), an electronic messages over size update messages in increase its economic gain from trading auction mechanism that provides all series and in conjunction with the against the order without first giving potential price improvement for the all- replace on queue functionality other trading interest on the Exchange or-none orders with size of 500 or more. described above. Current C2 Rules an opportunity to either trade with the Pursuant to those rules, the Exchange contains various provisions the current agency order or to trade at the execution may determine whether to make this system uses to mitigate message traffic, price when the Trading Permit Holder functionality available on C2. The such as Rules 6.34(b) (permits the was already bidding or offering on the proposed rule change deletes these rules Exchange to limit the number of Book. Rule 6.50 imposes an exposure (and makes conforming changes messages Trading Permit Holders may requirement of one second before such throughout the rules, including deleting send) and (c) (newly received quotations orders may execute. However, the references to AIM, SAM, and the rules), and other changes to the BBO may not Exchange recognizes that it may be as this functionality will not be be disseminated for a period of up to, possible for a Trading Permit Holder to available on C2 following the but no more than, one second), 6.35 establish a relationship with a customer technology migration. or other person to deny agency orders (regarding bandwidth packets), and Chapter 8 8.11.45 The proposed rule change the opportunity to interact on the essentially replaces these provisions. C2 Exchange and to realize similar The proposed rule change adds does not have unlimited capacity to economic benefits as it would achieve paragraph (d) to Rule 8.1, which states support unlimited messages, and the by executing agency orders as principal. a Trading Permit Holder or prospective technology platform onto which it will It is a violation of the Rule for a Trading Trading Permit Holder adversely migrates contains the above Permit Holder to be a party to any affected by an Exchange determination functionality, which are reasonable arrangement designed to circumvent under this Chapter 8, including the measures the Exchange may take to this Rule by providing an opportunity Exchange’s termination or suspension of manage message traffic and protect the for a customer to regularly execute a Trading Permit Holder’s status as a integrity of the System. The proposed against agency orders handled by the Market-Maker or a Market-Maker’s change is substantively the same as Trading Permit Holder immediately appointment to a class, may obtain a EDGX Rule 21.14, except it does not upon their entry into the System. review of such determination in include the provision regarding EDGX’s • It is a violation of Rule 6.50 for accordance with the provisions of ability to periodically delist options Trading Permit Holder to cause the Chapter 19. Current Rule 8.2 contains a with an average daily volume of less execution of an order it represents as similar provision applicable to that than 100 contracts. Additionally, agent on C2 against orders it solicited Rule; however, the remaining rules in current C2 Rule 6.34(c) (which is being from Trading Permit Holders and non- Chapter 8 contain various provision that deleted and replaced by the message Trading Permit Holder broker-dealers, permit the Exchange to make traffic mitigation provisions in proposed whether such solicited orders are determinations, which would be subject Rule 6.35) permits the Exchange to entered into C2 directly by the Trading to review under Chapter 19. Therefore, utilize a mechanism so that newly Permit Holder or by the solicited party the Exchange believes it is appropriate received quotes and other changes to the (either directly or through another to include a similar provision applicable BBO are not disseminated for a period Trading Permit Holder), if the Trading to the entire Chapter 8. Permit Holder fails to expose orders on The proposed rule change modifies 44 This refers to outbound messages being sent to C2 as required by the Rule. rule provisions throughout Chapter 8 to data feeds and OPRA. • With respect to nondisplayed clarify the distinction between Market- 45 The proposed rule change deletes the portions of reserve orders, the exposure Maker registration and appointment. A remainder of current Rule 6.34(b), which states the Exchange may impose restrictions on the use of a requirement of Rule 6.50 is satisfied if Trading Permit Holder may register as a computer connected through an API if necessary to the displayed portion of the order is Market-Maker which is a function ensure the proper performance of the System. The displayed at its displayable price for one available on the Exchange. A Trading proposed rules do not contain a similar provision; second. Permit Holder registered as a Market- however, to the extent C2 in the future wanted to • impose any type of these restrictions, it would Prior to or after submitting an order Maker may select appointments to similarly submit a rule change for Commission to the System, a Trading Permit Holder classes in which it agrees to satisfy approval. cannot inform another Trading Permit obligations as a Market-Maker and

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obtain Market-Maker treatment for its no option class registration may be and Market-Maker requirements set trading activity in those classes. made without the Market-Maker’s forth in Chapter 8. These are generally The proposed rule change renames consent to such registration, provided the only requirements applicable to Rule 8.2 to be Market-Maker Class that refusal to accept a registration may qualify as a Market-Maker. Appointments, as the rule generally be deemed sufficient cause for Rule 8.5 currently describes general describes how a Market-Maker may termination or suspension of a Market- obligations imposed on Market-Makers, obtain appointments to classes, rather Maker. As noted above, Market-Makers while Rule 8.6 describes requirements than continuing Market-Maker select their own appointments. Rules applicable to Market-Maker quotes (the registration. To retain status as a 8.1(b) and 8.4(b), among others, describe proposed rule change renames Rule 8.6 registered Market-Maker, a Market- circumstances under which the Maker must satisfy its obligations in its Exchange may suspend or terminate a to apply to all quote requirements rather appointed classes (as discussed below) Trading Permit Holder’s registration as than the firm quote requirement, which and otherwise stay in good standing, as a Market-Maker or a Market-Maker’s is still included in proposed Rule described in Rule 8.4 (as discussed appointment in a class. Additionally, 8.6(a)). The proposed rule moves the below). Currently, and following the the proposed rule change deletes the description of the continuous quoting System migration, Market-Makers may provision permitting it to arrange two or obligation to proposed Rule 8.6(d) from select their own class appointments more classes of contracts into the current Rule 8.5(a)(1), but there are no through an Exchange system. Rule 8.2(b) groupings and make registrations to substantive changes to the continuous states a Market-Maker may register in those groupings rather than to quoting obligation. The proposed rule one or more classes in a manner individual classes, as the Exchange does change also adds that the Market-Maker prescribed by the Exchange. The not, and does not intend, to create continuous quoting obligations in proposed rule change adds detail, which groups of registrations. Market-Makers proposed Rule 8.6(d) apply collectively conforms to EDGX Rule 22.3(b), which only select appointments by class. to Market-Makers associated with the states a Market-Maker may enter an Proposed Rule 8.2(c) states a Market- same Trading Permit Holder firm. This appointment request via an Exchange- Maker’s appointment in a class confers is consistent with the Exchange’s approved electronic interface with the the right of the Market-Maker to quote current interpretation of this obligation, Exchange’s systems by 9:00 a.m., which (using order functionality) in that class. and the proposed rule change merely appointment will become effective on On C2’s current system, there is separate codifies it in the Rules to provide the day the Market-Maker enters the quote functionality for quoting in additional transparency. This structure appointment request. The Exchange appointed classes. Following the conforms to EDGX Rules 22.5 and notes Market-Makers on EDGX may technology migration, the new System 22.6.46 The proposed rule change also select appointments to series, while permits Market-Makers to quote in moves current Rule 8.5(d) to proposed Market-Makers on C2 will continue to appointed classes using order Rule 8.6(e), which permits the Exchange be able to select appointments to a class, functionality (which is the case today to call on a Market-Maker to submit a as they do today. This proposed process on EDGX). A similar provision is single quote or maintain continuous is similar to the one Market-Makers use contained in current Rule 8.2(d). quotes in one or more series of a Market- on C2’s current systems for selecting The proposed rule change adds Maker’s appointed class whenever, in appointments. The proposed rule proposed Rule 8.2(d), which references the judgment of the Exchange, it is change deletes the language in current the Exchange’s ability to limit necessary to do so in the interest of Rule 8.2(d) stating a Market-Maker may appointments pursuant to proposed maintaining a fair and orderly market. change its registered classes upon Rule 8.1(c), as described above. The revised language is substantially the Current Rule 8.2(d) describes the advance notification to the Exchange, as same as EDGX Rule 22.6(d)(2). The appointment costs of Market-Maker that is duplicative of proposed Rule proposed rule change also moves class appointments. The proposed rule 8.2(b), which requires Market-Makers to current Rule 8.5, Interpretation and change merely moves the description of select appointments prior to a trading Policy .01 to proposed Rule 8.6(d)(4), appointment costs to proposed Rule 8.3. day for that appointment to become which provides a Market-Maker has no effective on that trading day. The proposed rule change deletes quoting obligations while the The proposed rule change deletes the current Rule 8.4(a)(2), which states a provision in current Rule 8.2(b) that Market-Maker must continue to satisfy underlying security for an appointed permits the Exchange to register a the Market-Maker qualification class is in a limit up-limit down state. Market-Maker in one or more classes of requirements specified by the Exchange, The revised language is substantially option contracts, as the Exchange does because it is redundant of the language similar to EDGX Rule 22.6(d)(5). not, and does not intend, to impose in subparagraph (a)(1), which states a The proposed rule change adds the appointments on Market-Makers. Market-Maker must continue to meet following quoting obligations to Rule Similarly, the proposed rule change the general requirements for Trading 8.6, which are the same as obligations deletes current Rule 8.2(c), which states Permit Holders set forth in Chapter 3 in EDGX Rule 22.6:

Proposed Obligation C2 rule EDGX rule

A Market-Maker’s bid (offer) for a series must be accompanied by the number of contracts at the price of the bid (offer) the Market-Maker is willing to buy (sell), and the best bid and best offer entered by a Market- Maker must have a size of at least one contract ...... 8.6(b) 22.6(a)

46 EDGX rules permit appointments by series, rule change does not add the obligation in EDGX will often use Post Only orders to add liquidity to while C2 Rules will continue to permit Rule 22.5(a)(7), which states a Market-Maker must the Book as quotes (including through use of the appointments by class. Ultimately, an EDGX honor all orders the trading system routes to away bulk order port), and those orders, like current market-maker has the same flexibility to select its markets. The Exchange believes this obligation is quotes today, do not route to other exchanges. appointments, and is subject to the same quoting unnecessary, as it is true for all orders. obligations, as C2 Market-Makers. The proposed Additionally, the Exchange expects Market-Makers

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Proposed Obligation C2 rule EDGX rule

A Market-Maker that enters a bid (offer) on the Exchange in a series in an appointed class must enter an offer (bid) ...... 8.6(c) 22.6(b) A Market-Maker is considered an OEF under the Rules in all classes in which the Market-Maker has no ap- pointment. The total number of contracts a Market-Maker may execute in classes in which it has no appoint- ment may not exceed 25% of the total number of all contracts the Market-Maker executes on the Exchange in any calendar quarter ...... 8.6(f) 22.6(c)

The proposed size requirement in requirements and arrangements of • Rule 6.4 states the board will proposed Rule 8.6(b) is consistent with Market-Makers into a single Rule 8.8. establish minimum quoting increments the firm quote rule, and, as a bid and Current Rule 8.11 provides the for options traded on the Exchange. offer currently cannot have size of zero, Exchange may impose an upper limit on • Rule 6.33, which permits the board the minimum size requirement is the aggregate number of Market-Makers to designate persons other than the CEO consistent with current C2 System that may quote in each product (the or President to halt or suspend trading functionality. ‘‘CQL’’). Current and proposed Rule and take other action if necessary or While there is no explicit requirement 8.1(c) permits the Exchange to limit the appropriate for the maintenance of a fair in current C2 rules that a Market-Maker number of Market-Makers in a class and and orderly market or the protection of must enter two-sided quotes in monitor quote capacity, in a similar investors, due to emergency conditions. appointed series like the one in manner as EDGX may impose any such • Rule 8.1(c), which permits the proposed Rule 8.6(c), the continuous limits.47 Therefore, the proposed rule board or its designee to limit access to quoting obligation requires a continuous change deletes Rule 8.11, since it is the System, for a period to be two-sided market (see current Rule duplicative. determined in the board’s discretion, 8.5(a)(1)) and general obligations require Currently, there are no Primary pending any action required to address a Market-Maker to, among other things, Market-Makers (‘‘PMM’’) (see Rule 8.13) the issue of concern to the board, and compete with other Market-Makers in or Designated Primary Market-Makers to the extent the board places its appointed classes, update quotes in (‘‘DPM’’) (see Rules 8.14 through 8.21), permanent limitations on access to the response to changes market conditions, and C2 does not intend to appoint any System on any Trading Permit Holder, and maintain active markets in its PMMs or DPMs in the future. Therefore, such limits will be objectively appointed classes (see current Rule the proposed rule change deletes Rules determined and submitted to the 8.5(a)(3) through (5)), which are 8.13 through 8.21, as well as the Commission for approval pursuant to a consistent with the requirement to enter definition of DPM in Rule 1.1. The rule change filing. two-sided quotes. Additionally, current proposed rule change makes These decisions relate to Exchange C2 System functionality permits Market- corresponding changes throughout the trading and operations, and thus are Makers to submit two-sided quotes. rules to delete references to those rule made by Exchange management, rather Current C2 Rules contain no specific numbers and to PMMs and DPMs. than the Board, which generally is not requirement regarding the percentage of involved in determinations related to a Market-Makers executed volume that Other Nonsubstantive Changes day-to-day operations of the Exchange. must be within their appointed classes. The proposed rule change deletes the Therefore, the proposed rule change However, such a requirement is supplemental rule (a) to Chapter 4 modifies these provisions to indicate the consistent with Market-Makers current regarding proxy voting. C2 Chapter 4 Exchange will make these obligations to maintain continuous two- incorporates Cboe Options Chapter IV determinations rather than the Board. sided quotes in their appointed classes by reference. Recently, Cboe Options The Exchange notes pursuant to for a significant part of the trading day, adopted Cboe Options Rule 4.25, which corresponding EDGX rules, EDGX compete in their appointed classes, and is substantively identical to the C2 makes those determinations rather than update quotes and maintain active Chapter 4 supplement rule (a). By virtue EDGX’s board. markets in their appointed classes. of the incorporation by reference of The proposed rule change deletes The Exchange believes these Cboe Options Chapter IV, including current Rule 6.38, which requires additional explicit requirements in the Rule 4.25, into C2 Chapter 4, Cboe Trading Permit Holders to file with the rules will continue to offset the benefits Options Rule 4.25 applies to C2 Trading Exchange trade information covering a Market-Maker receives in its Permit Holders pursuant to C2 Chapter each Exchange transaction during a appointed classes, as the proposed 4. Therefore, the supplement rule (a) is business day. Because all transactions Market-Maker requirements are now duplicative of Cboe Options Rule on the Exchange are electronic, as soon consistent with current C2 Market- 4.25 and is no longer necessary. as a transaction executes on the maker obligations and observed quoting The proposed rule change deletes Exchange, the Exchange has all of the behavior, and they are the substantively Rule 6.20, which is currently reserved information indicated in Rule 6.38 and the same as those in the EDGX rules. and contains no rule text. thus does not require Trading Permit The Exchange believes having The following rules contain language Holders to submit a separate report with consistent Market-Maker obligations in that the C2 board of directors may make this information, as that is duplicative. the C2 and EDGX rules will simplify the certain trading decisions: The Exchange notes EDGX does not regulatory requirements and increase • Rule 6.1, Interpretations and contain a similar rule. the understanding of the Exchange’s Policies .01 and .02 (proposed to be The proposed rule change deletes operations for Trading Permit Holders Rule 6.1(b)), which states the board Rule 6.41, which states a Trading Permit that are Market-Makers on both C2 and determines trading hours and Exchange Holder may not bid, offer, purchase, or EDGX. holidays. write on the Exchange any security The proposed rule change combines other than an option contract currently Rules 8.8 and 8.10 regarding financial 47 See EDGX Rule 22.2(c). open for trading in accordance with the

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provisions of Chapter 5. This rule is Holder to be a Designated Give Up passive voice to active voice), and unnecessary, as the System would not pursuant to Rule 6.30. The proposed conform language to corresponding permit the entry or execution of orders rule change eliminates the term EDGX rules. In these cases, the or quotes in securities not open for acronym from the forms (as noted Exchange intends no substantive trading. above, that term will no longer be used changes to the meaning or application of The proposed rule change deletes from a system perspective following the the rules. Rule 6.46 regarding Trading Permit technology migration) and makes other Chapter 24 incorporates rules in Cboe Holder Education, because it is nonsubstantive clarifications (such as Options Chapter XXIV by reference, but duplicative of Rule 3.13. adding defined terms). states certain rules do not apply to C2. Attached as Exhibits 3A, 3B, and 3C The proposed rule change makes One rule that is excluded is Rule 24.17 are the following updated forms: various nonsubstantive changes (RAES Eligibility in Broad-Based Index • C2 Trading Permit Holder throughout the rules, in addition to Options and Options on Exchange Notification of Designated Give-Ups; nonsubstantive changes described Traded funds on Broad Based Indexes). • C2 Give Up Change Form; and above, to simplify or clarify rules, delete This rule has been deleted from Cboe • C2 Give Up Change Form for duplicative rule provisions, conform Options Chapter XXIV, and thus the Accepting Clearing Trading Permit paragraph numbering and lettering proposed rule change deletes the Holders. throughout the rules, update Exchange reference to that rule in Chapter 24. These forms relate to the manner in department names, revise chapter and Additionally, the proposed rule which a Trading Permit Holder may rule names, use plain English (e.g., change moves certain rules within the designate Clearing Trading Permit change ‘‘shall’’ to ‘‘must,’’ change C2 rulebook as follows:

Current Proposed Corresponding Rule C2 rule C2 rule EDGX rule

Affiliates, order routing/error accounts/order cancellation and release ...... 3.2(f), 6.36, 6.37, 3.16, 3.17 and 2.10, 2.11, and and 6.47. 6.15. 21.9. Nullification and adjustment of options transactions including obvious errors .... 6.15. 6.29. 20.6. Price binding despite erroneous report ...... 6.16. 6.26(b). 21.11. Reporting of matched trades to OCC ...... 6.31. 6.27. 21.13. Contract made on acceptance of bid or offer ...... 6.40. 6.26(a). 21.11. Trading on knowledge of imminent undisclosed solicited transaction ...... 6.55. 6.51. N/A.

2. Statutory Basis certain system functionality currently To the extent a proposed rule change The Exchange believes the proposed offered by EDGX and other Cboe is based on an existing Cboe Affiliated rule change is consistent with the Affiliated Exchanges in order to provide Exchange rule, the language of Exchange Securities Exchange Act of 1934 (the a consistent technology offering for the Rules and Cboe Affiliated Exchange ‘‘Act’’) and the rules and regulations Cboe Affiliated Exchanges. A consistent rules may differ to extent necessary to thereunder applicable to the Exchange technology offering, in turn, will conform with existing Exchange rule and, in particular, the requirements of simplify the technology text or to account for details or Section 6(b) of the Act.48 Specifically, implementation, changes and descriptions included in the Exchange’s the Exchange believes the proposed rule maintenance by Users of the Exchange Rules but not in the applicable EDGX change is consistent with the Section that are also participants on Cboe rule. Where possible, the Exchange has 6(b)(5) 49 requirements that the rules of Affiliated Exchanges. The proposed rule substantively mirrored Cboe Affiliated an exchange be designed to prevent changes would also provide Users with Exchange rules, because consistent rules fraudulent and manipulative acts and access to functionality that is generally will simplify the regulatory practices, to promote just and equitable available on markets other than the requirements and increase the principles of trade, to foster cooperation Cboe Affiliated Exchanges and may understanding of the Exchange’s and coordination with persons engaged result in the efficient execution of such operations for Trading Permit Holders that are also participants on EDGX. The in regulating, clearing, settling, orders and will provide additional proposed rule change would provide processing information with respect to, flexibility as well as increased greater harmonization between the rules and facilitating transactions in functionality to the Exchange’s System of the Cboe Affiliated Exchanges, securities, to remove impediments to and its Users. The proposed rule change and perfect the mechanism of a free and resulting in greater uniformity and less does not propose to implement new or burdensome and more efficient open market and a national market unique functionality that has not been system, and, in general, to protect regulatory compliance. As such, the previously filed with the Commission or proposed rule change would foster investors and the public interest. is not available on Cboe Affiliated Additionally, the Exchange believes the cooperation and coordination with Exchanges. The Exchange notes that the persons engaged in facilitating proposed rule change is consistent with proposed rule text is generally based on the Section 6(b)(5) 50 requirement that transactions in securities and would EDGX Rules and is different only to the the rules of an exchange not be designed remove impediments to and perfect the extent necessary to conform to the to permit unfair discrimination between mechanism of a free and open market Exchange’s current rules, retain customers, issuers, brokers, or dealers. and a national market system. The The proposed rule changes are intended differences based on the Exchange also believes that the generally intended to add or align Exchange’s market model, or make other proposed amendments will contribute nonsubstantive changes to simplify, to the protection of investors and the 48 15 U.S.C. 78f(b). clarify, eliminate duplicative language, public interest by making the 49 15 U.S.C. 78f(b)(5). or make the rule provisions plain Exchange’s rules easier to understand. 50 Id. English. Where necessary, the Exchange has

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proposed language consistent with the on all Cboe Affiliated exchanges. As process, how the price of the opening Exchange’s operations on EDGX such, the proposed rule change will transaction is determined; and the technology, even if there are specific foster cooperation and coordination process for late openings and re- details not contained in the current with persons engaged in facilitating openings. Conforming the C2 Opening structure of EDGX rules. The Exchange transactions in securities and would Process to the EDGX opening process believes it is consistent with the Act to remove impediments to and perfect the will contribute to the protection of maintain its current structure and such mechanism of a free and open market investors and the public interest by detail, rather than removing such details and a national market system. avoiding investor confusion and simply to conform to the structure or The Exchange further believes that the providing consistent functionality format of EDGX rules, again because the proposed definition of bulk order entry across Cboe Affiliated Exchanges. Exchange believes this will increase the ports to provide that only Post Only Following the technology migration, understanding of the Exchange’s Orders with a time in force of DAY or orders and quotes will generally be operations for all Trading Permit GTD may be entered, modified, or allocated in the same manner as they are Holders of the Exchange. cancelled through such ports will today on C2—either pursuant to pro-rata The proposed order instructions and protect investors and the public interest or price-time priority. Deleting other TIFs not currently available on C2 add and maintain fair and orderly markets priority overlays that are not used and functionality currently offered by EDGX by offering specific functionality will not be used on C2 protects in order to provide consistent order through which Users can submit orders investors by eliminating potential handling options across the Cboe that will result in quotations on the confusion regarding which rules apply Affiliated Exchanges. The proposed rule Exchange. In particular, the options to trading on C2. The proposed change changes would also provide Users with markets are quote driven markets regarding how the System rounds the access to optional functionality that may dependent on liquidity providers to an number of contracts when they cannot result in the efficient execution of such even greater extent than equities be allocated proportionally in whole orders and will provide additional markets. In contrast to the numbers pursuant to the pro-rata flexibility as well as increased approximately 7,000 different securities algorithm (which previously only functionality to the Exchange’s System traded in the U.S. equities markets each addressed the situation if there one and its Users. As explained above, the day, there are more than 500,000 additional contract for two market proposed functionality is substantially unique, regularly quoted option series. participants) and proposed aggregated similar to functionality on EDGX, and is Given this breadth in options series the pro-rata algorithm (which previously optional for Users. The proposed rule options markets are more dependent on was silent on this matter) adds detail to change would provide greater liquidity providers than equities the rules regarding the allocation harmonization between the order markets; such liquidity is provided most process and provides a fair, objective handling instructions available amongst commonly by registered market makers manner for rounding and distribution in the Cboe Affiliated Exchanges, resulting but also by other professional traders. all situations in which the number of in greater uniformity and less As such, the Exchange believes contracts many not be allocated burdensome and more efficient maintaining specific functionality to proportionally in whole numbers. regulatory compliance. With respect to maintain quotations on the Exchange Rounding and distributing contracts in the proposed MTP modifier through bulk order entry ports will the proposed manner is also functionality, the Exchange believes the protect investors and the public interest substantively the same as an EDGX rule, various proposed modifier options and the maintenance of fair and orderly as discussed above. would allow firms to better manage markets by ensuring that an efficient The Exchange believes that the order flow and prevent undesirable process to enter and update quotations general provisions regarding the trading executions against themselves, and the is available to Exchange Users. The of complex orders provide a clear proposed change described herein Exchange also believes this is framework for trading of complex orders enhances the choices available to such reasonable, as it will establish a in a manner consistent with EDGX. This firms in how they do so. The proposed marketplace that operates more similar consistency should promote a fair and rule change also is designed to support to C2’s current market, which is a quote- orderly national options market system. the principles of Section 11A(a)(1) of based market. The proposed execution and priority the Act 51 in that it seeks to assure fair The Exchange believes the proposed rules will allow complex orders to competition among brokers and dealers rule change to modify the minimum interact with interest in the Simple and among exchange markets. The increment for XSP options with those Book and, conversely, interest on the proposed rule change would also for SPY options perfects the mechanism Simple Book to interact with complex provide Users with access to for a free and open market and a orders in an efficient and orderly functionality that may result in the national market system because both manner. Consistent with C2’s current efficient execution of such orders and products are based, in some manner, on rules and the rules of other exchanges, will provide additional flexibility as 1/10th the price of the S&P 500 Index, proposed Rule 6.13(f)(2) will not well as increased functionality to the and therefore it makes sense to have the execute a complex order at a net price Exchange’s System and its Users. same minimum increments of bids and ahead of orders on the Simple Book The proposed rule change to define offers for both. This proposed rule without improving the BBO on at least ports will reduce complexity and change is also substantively the same as one component of the complex strategy increase understanding of the a Cboe Options rule, as discussed above. by at least $0.01. Additionally, before Exchange’s operations for all Users of The proposed Opening Process is executing against another complex the Exchange following migration. As designed to promote just and equitable order, a complex order on the Exchange the ports are the same as used on certain principles of trade and remove will execute first against orders on the Cboe Affiliated Exchanges, Users of the impediments to, and perfect the Simple Book if that would result in the Exchange and these other exchanges mechanism of, a free and open market best price prior to executing against will have access to similar functionality system because it would align with the complex orders on the COB. The EDGX Opening Process as it relates to: complex order priority pursuant to 51 15 U.S.C. 78k–1(a)(1). Which orders may participate in the which complex orders will trade against

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the leg markets prior to execution proposed Rule 6.13(i) ensures that the COA, which is the same maximum against complex orders is consistent System will capture and act upon Response Time Interval on EDGX. with the complex order priority complex orders that are due for The Exchange again notes that it has currently available on C2 and ensures execution. The regular and event-driven not proposed to limit the frequency of protection of the leg markets. evaluation process removes potential COAs for a complex strategy and could The Exchange proposes that complex impediments to the mechanisms of the have multiple COAs occurring orders may be submitted as limit orders free and open market and the national concurrently with respect to a particular and market orders, and orders with a market system by ensuring that complex complex strategy. The Exchange Time in Force of GTD, IOC, DAY, GTC, orders are given the best possible represents that it has systems capacity or OPG, or as a Complex Only order, chance at execution at the best price, to process multiple overlapping COAs COA-eligible or do-not-COA order. In evaluating the availability of complex consistent with the proposal, including particular, the Exchange believes that orders to be handled in a number of systems necessary to conduct limit orders, GTD, IOC, DAY, GTC, and ways as described in this proposal. Any surveillance of activity occurring in OPG orders all provide valuable potential impediments to the order such auctions. Further, EDGX may limitations on execution price and time handling and execution process currently have multiple complex that help to protect Exchange respecting complex orders are auctions in the same strategy run participants and investors in both the substantially removed due to their concurrently. EDGX Rule 21.20, Simple Book and the COB. In addition, continual and event-driven evaluation Interpretation and Policy .02 similarly the Exchange believes that offering for subsequent action to be taken by the permits multiple complex auctions in participants the ability to utilize MTP System. This protects investors and the the same strategy to run concurrently. Modifiers for complex orders in a public interest by ensuring that complex The Exchange does not anticipate similar way to the way they are used on orders in the System are continually overlapping auctions necessarily to be a the Simple Book provides such monitored and evaluated for potential common occurrence, however, after participants with the ability to protect action(s) to be taken on behalf of considerable review, believes that such themselves from inadvertently matching investors that submit their complex behavior is more fair and reasonable against their own interest. As discussed orders to the Exchange. with respect to Trading Permit Holders above, because complex orders do not If a complex order is not priced equal who submit orders to the COB because route and may not be Post Only, all to, or better than, the SBBO or is not the alternative presents other issues to complex orders are Book Only, which is priced to improve other complex orders such Trading Permit Holders. consistent with current C2 complex resting at the top of the COB, the Specifically, if the Exchange does not order functionality. The proposed rule Exchange does not believe that it is permit overlapping COAs, then a change also clarifies that Attributable/ reasonable to anticipate that it would Trading Permit Holder who wishes to Non-Attributable instructions are generate a meaningful number of COA submit a COA-eligible order but has its available for complex orders; however, Responses such that there would be order rejected because another COA is these instructions merely apply to price improvement of the complex already underway in the complex information that is displayed for the order’s limit price. Promoting the strategy must either wait for such COA orders but do not impact how they orderly initiation of COAs is essential to to conclude and re-submit the order to execute. maintaining a fair and orderly market the Exchange (possibly constantly The Exchange believes that permitting for complex orders; otherwise, the resubmitting the complex order to complex orders to be entered with these initiation of COAs that are unlikely to ensure it is received by the Exchange varying order types and modifiers will result in price improvement could affect before another COA commences) or give the Exchange participants greater the orderliness of the marketplace in must send the order to another options control and flexibility over the manner general. exchange that accepts complex orders. and circumstances in which their orders The Exchange believes that this The Legging restrictions protects may be executed, modified, or removes impediments to and perfects investors and the public interest by cancelled, and thus will provide for the the mechanisms of a free and open ensuring that Market-Makers and other protection of investors and contribute to market and a national market system by liquidity providers do not trade above market efficiency. promoting the orderly initiation of their established risk tolerance levels, as In particular, the Exchange notes that COAs, and by limiting the likelihood of described above. Despite the enhanced while both the Complex Only Order and unnecessary COAs that are not expected execution opportunities provided by the do-not-COA instruction may reduce to result in price improvement. Legging, the Exchange believes it is execution opportunities for the entering The Exchange believes the proposed reasonable and consistent with the Act Market-Maker or User, respectively, maximum 500 millisecond Response to permit Market-Makers to submit similar features are already offered by Time Interval promotes just and orders designated as Complex Only EDGX (and C2 with respect to do-not- equitable principles of trade and Orders that will not leg into the Simple COA) in connection with complex order removes impediments to a free and open Book. This is analogous to functionality functionality and that they are market because it allows sufficient time on EDGX,52 as well as other types of reasonable limitations a Market-Maker for Trading Permit Holders participating functionality offered by the Exchange or User, respectively, may wish to in a COA to submit COA Responses and that provides Trading Permit Holders include on their order in order to would encourage competition among the ability to direct the Exchange not to participate on the COB. participants, thereby enhancing the route their orders or remove liquidity Evaluation of the executability of potential for price improvement for from the Exchange. Similar to such complex orders is central to the removal complex orders in the COA to the analogous features, the Exchange of impediments to, and the perfection benefit of investors and public interest. believes that Market-Makers may utilize of, the mechanisms of a free and open The Exchange believes the proposed Complex Only Order functionality as market and a national market system rule change is not unfairly part of their strategy to maintain and, in general, the protection of discriminatory because it establishes a additional control over their executions, investors and the public interest. The Response Time Interval applicable to all proposed evaluation process pursuant to Exchange participants participating in a 52 See EDGX Rule 21.20(b)(1).

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in connection with their attempt to maker obligations and observed quoting Proposed Rule 3.16 (related to provide and not remove liquidity, or in behavior, and they are the substantively Exchange affiliations with Trading connection with applicable fees for the same as Market-Maker requirements Permit Holders) and 3.17 (related to executions. in the EDGX rules. Cboe Trading providing Outbound Based on the foregoing, the Exchange The Exchange believes the proposed Router services) are substantially similar does not believe that the proposed rule change regarding information to be to EDGX Rule 2.10 and 2.11. complex order functionality raises any provided to Users in transaction reports Additionally, proposed Rule 3.16 new or novel concepts under the Act, is consistent with current practice and incorporates the provisions in current and instead is consistent with the goals provides market participants with C2 Rule 3.2(f) related to restrictions on of the Act to remove impediments to additional transparency regarding these Exchange affiliations with Trading and to perfect the mechanism of a free reports. It is also consistent with other Permit Holders. As noted above, the and open market and a national market Exchange and options industry provisions related to Exchange system, and to protect investors and the practices, including the fact that affiliations with Trading Permit Holders public interest. clearing information available through (including exceptions to any restrictions The proposed rule change regarding OCC already provides contra-party in the Rules) are consistent with the price adjust is consistent with linkage information as well as the ability of a governing documents of C2. rules that require exchanges to User on the Exchange to disclose its Additionally, the Commission recently reasonably avoid displaying quotations identify when quoting. The Exchange approved the Exchange affiliation with that lock or cross any Protected believes this is consistent with the Act, Cboe Trading related to its performing Quotation, as well as EDGX Rule 21.1(i). as it is designed to foster cooperation inbound routing services for C2. The The proposed functionality will assist and coordination with persons engaged Exchange believes proposed Rule 3.17 Users by displaying orders and quotes at in clearing, settling, processing promotes the maintenance of a fair and permissible prices. information with respect to, and orderly market, the protection of The Exchange believes the additional facilitating transactions in securities. investors and the public interest, and is and enhanced price protection The proposed rule change makes in the best interests of the Exchange and mechanisms and risk controls will various nonsubstantive changes its Trading Permit Holders as it will protect investors and the public interest throughout the rules, in addition to allow the routing of orders to Trading and maintain fair and orderly markets nonsubstantive changes described Centers (including affiliated exchanges by mitigating potential risks associated above, will protect investors and benefit BZX Options and EDGX Options) from with market participants entering orders market participants, as these changes the Exchange in the same manner as and quotes at unintended prices, and simplify or clarify rules, delete certain Cboe-affiliated exchanges risks associated with orders and quotes duplicative rule provisions, conform currently route orders. Moreover, in trading at prices that are extreme and paragraph numbering and lettering meeting the requirements of Rule 3.17 potentially erroneous, which may likely throughout the rules, update Exchange (i.e., regulation as a facility, FINRA have resulted from human or department names, use plain English, acting as the designated examining operational error. While the Exchange and conform language to corresponding authority, optional use of Cboe Trading currently offers many similar EDGX rules. as an outbound router, restrictions on protections and controls, as described As described above, the fundamental business of Cboe Trading, procedures above, the Exchange believes Users will premise of the proposal is that the and internal controls, cancellation of benefit from the additional functionality Exchange will operate its options orders, maintenance of error account), that will be available following the market in a similar manner to its the Exchange believes it will have technology migration. The Exchange affiliated options exchange, EDGX mechanisms in place that protect the notes the proposed rule change does not (which as discussed above in the independence of the Exchange’s establish outer boundaries or limits to purpose section, is similar in many regulatory responsibility with respect to the levels at which mechanisms can be ways to how C2 currently operates), Cboe Trading, as well as demonstrates set. The Exchange believes this is with the exception of the priority model that Cboe Trading cannot use any reasonable and necessary to afford the and certain other limited differences. information that it may have because of Exchange and Users flexibility to The basis for the majority of the its affiliation with the Exchange to its establish and modify the default proposed rule changes in this filing are advantage. This will help prevent an parameters in order to protect investors the approved rules of EDGX, which unfair burden on competition and unfair and the public interest, and maintain a have already been found to be discrimination between customers, fair and orderly market. The Exchange consistent with the Act. For instance, issuers, brokers, or dealers. notes any Exchange-determined the Exchange does not believe that any parameters will always be available on of the proposed order types or order B. Self-Regulatory Organization’s C2’s website via specification or Notice. type functionality or allocation and Statement on Burden on Competition The Exchange notes the proposed rule priority provisions raise any new or C2 does not believe that the proposed changes related to price protection novel issues that have not previously rule change will impose any burden on mechanisms and risk controls are been considered. competition that is not necessary or substantially the same as EDGX rules Thus, the Exchange further believes appropriate in furtherance of the and specifications, as discussed above. that the functionality that it proposes to purposes of the Act. The Exchange The proposed rule change is also similar offer is consistent with Section 6(b)(5) of reiterates that the proposed rule change to current C2 and Cboe Options Rules. the Act, because the System upon the is being proposed in the context of the The Exchange believes the proposed technology migration is designed to technology integration of the Cboe additional explicit Market-Maker continue to be efficient and its operation Affiliated Exchanges. Thus, the requirements in the rules will continue transparent, thereby facilitating Exchange believes this proposed rule to offset the benefits a Market-Maker transactions in securities, removing change is necessary to permit fair receives in its appointed classes, as the impediments to and perfecting the competition among national securities proposed Market-Maker requirements mechanism of a free and open market exchanges. In addition, the Exchange are consistent with current C2 Market- and a national market system. believes the proposed rule change will

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benefit Exchange participants in that it rule change may become operative prior change is consistent with the Act. will provide a consistent technology to the proposed C2 technology Comments may be submitted by any of offering for Users by the Cboe Affiliated migration on May 14, 2018. In support the following methods: Exchanges. Following the technology of its waiver request, the Exchange Electronic Comments migration, the C2 System, as described states that many of the proposed rule in this proposed rule change, will apply changes are based on rules of EDGX • Use the Commission’s internet to all Users and order and quotes Options and BZX Options and the comment form (http://www.sec.gov/ submitted by Users in the same manner. proposed rule changes will align much rules/sro.shtml); or As discussed above, the basis for the of C2’s System with that of those other • Send an email to rule-comments@ majority of the proposed rule changes in Cboe Affiliated Changes, which will sec.gov. Please include File Number SR– this filing are the approved rules of simplify the User experience for those C2–2018–005 on the subject line. EDGX, while a few other changes are firms that are members of one or more Paper Comments based on approved rules of Cboe of the other Cboe Affiliated Exchanges, Options and BZX, which have already and also will promote stability across • Send paper comments in triplicate been found to be consistent with the the affiliated trading platforms. The to Secretary, Securities and Exchange Act. Commission notes that, because Commission, 100 F Street NE, migrating C2’s trading platform Washington, DC 20549–1090. C. Self-Regulatory Organization’s technology over to EDGX Options Statement on Comments on the All submissions should refer to File technology is a material event, the Number SR–C2–2018–005. This file Proposed Rule Change Received From Exchange has publicized its plans well Members, Participants, or Others number should be included on the in advance by issuing periodic updates subject line if email is used. To help the The Exchange neither solicited nor to Trading Permit Holders regarding the Commission process and review your received comments on the proposed technology migration changes and the comments more efficiently, please use rule change. anticipated timeline in order to enable only one method. The Commission will Trading Permit Holders to make and test III. Date of Effectiveness of the post all comments on the Commission’s system changes at the firm and User internet website (http://www.sec.gov/ Proposed Rule Change and Timing for level to accommodate the transition and Commission Action rules/sro.shtml). Copies of the ensure uninterrupted access to the submission, all subsequent The Exchange has filed the proposed Exchange after the migration. In amendments, all written statements rule change pursuant to Section addition, as described in detail above, with respect to the proposed rule 53 the Exchange’s proposal does not raise 19(b)(3)(A) of the Act and Rule 19b– change that are filed with the 54 any new or novel issues, as the nature 4(f)(6) thereunder. Because the Commission, and all written of the changes are connected to the foregoing proposed rule change does communications relating to the migration of C2 to the existing not: (i) Significantly affect the proposed rule change between the technology and functionality of the protection of investors or the public Commission and any person, other than EDGX Options platform. Therefore, the interest; (ii) impose any significant those that may be withheld from the Commission believes that waving the burden on competition; and (iii) become public in accordance with the 30-day operative delay is consistent operative for 30 days from the date on provisions of 5 U.S.C. 552, will be with the protection of investors and the which it was filed, or such shorter time available for website viewing and as the Commission may designate, it has public interest. Accordingly, the Commission hereby waives the 30-day printing in the Commission’s Public become effective pursuant to Section Reference Room, 100 F Street NE, 55 operative delay and designates the 19(b)(3)(A) of the Act and Rule 19b– Washington, DC 20549 on official 56 proposal operative on May 11, 2018.59 4(f)(6) thereunder. business days between the hours of A proposed rule change filed under At any time within 60 days of the 57 filing of the proposed rule change, the 10:00 a.m. and 3:00 p.m. Copies of the Rule 19b–4(f)(6) normally does not filing also will be available for become operative prior to 30 days after Commission summarily may temporarily suspend such rule change if inspection and copying at the principal the date of the filing. However, pursuant office of the Exchange. All comments to Rule 19b–4(f)(6)(iii),58 the it appears to the Commission that such action is necessary or appropriate in the received will be posted without change. Commission may designate a shorter Persons submitting comments are time if such action is consistent with public interest, for the protection of investors, or otherwise in furtherance of cautioned that we do not redact or edit protection of investors and the public personal identifying information from interest. The Exchange has asked the the purposes of the Act. If the Commission takes such action, the comment submissions. You should Commission to waive the 30-day submit only information that you wish operative delay so that the proposed Commission will institute proceedings to determine whether the proposed rule to make available publicly. All submissions should refer to File 53 15 U.S.C. 78(b)(3)(A). change should be approved or 54 17 CFR 240.19b–4(f)(6). disapproved. Number SR–C2–2018–005 and should 55 be submitted on or before June 6, 2018. 15 U.S.C. 78s(b)(3)(A). IV. Solicitation of Comments 56 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– For the Commission, by the Division of 4(f)(6)(iii) requires the Exchange to give the Interested persons are invited to Trading and Markets, pursuant to delegated Commission written notice of the Exchange’s intent submit written data, views, and authority.60 to file the proposed rule change, along with a brief description and text of the proposed rule change, arguments concerning the foregoing, Eduardo A. Aleman, at least five business days prior to the date of filing including whether the proposed rule Assistant Secretary. of the proposed rule change, or such shorter time [FR Doc. 2018–10417 Filed 5–15–18; 8:45 am] as designated by the Commission. The Exchange 59 For purposes only of waving the 30-day has satisfied this requirement. operative delay, the Commission has considered the BILLING CODE 8011–01–P 57 17 CFR 240.19b–4(f)(6). purposed rule’s impact on efficiency, competition, 58 17 CFR 240.19b–4(f)(6). and capital formation. See 15 U.S.C. 78c(f). 60 17 CFR 200.30–3(a)(12).

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Reader Aids Federal Register Vol. 83, No. 95 Wednesday, May 16, 2018

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING MAY

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. 30, 2018 ...... 20709 Presidential Documents 1 CFR No. 2018-07 of April Executive orders and proclamations 741–6000 426...... 19408, 19414 30, 2018 ...... 20711 The United States Government Manual 741–6000 3 CFR Notice of May 10, 2018 ...... 22175 Other Services Proclamations: Electronic and on-line services (voice) 741–6020 9704 (Amended by 6 CFR Privacy Act Compilation 741–6050 9739) ...... 20677 Proposed Rules: Public Laws Update Service (numbers, dates, etc.) 741–6043 9705 (Amended by 5...... 19020, 20738 9740) ...... 20683 9710 (Amended by 7 CFR ELECTRONIC RESEARCH 9739) ...... 20677 2...... 22177 World Wide Web 9711 (Amended by 9740) ...... 20683 250...... 18913 925...... 21165 Full text of the daily Federal Register, CFR and other publications 9729...... 19155 984...... 21841 is located at: www.fdsys.gov. 9730...... 19425 1006...... 21843 Federal Register information and research tools, including Public 9731...... 19599 9732...... 19601 1409...... 22177 Inspection List, indexes, and Code of Federal Regulations are 1773...... 19905 located at: www.ofr.gov. 9733...... 19893 9734...... 19895 3419...... 21846 Proposed Rules: E-mail 9735...... 19897 9736...... 19899 66...... 19860 FEDREGTOC (Daily Federal Register Table of Contents Electronic 9737...... 19901 930...... 21941 Mailing List) is an open e-mail service that provides subscribers 9738...... 19903 945...... 21188 with a digital form of the Federal Register Table of Contents. The 9739...... 20677 1255...... 22213 digital form of the Federal Register Table of Contents includes 9740...... 20683 9 CFR HTML and PDF links to the full text of each document. 9741...... 20713 To join or leave, go to https://public.govdelivery.com/accounts/ 9742...... 22165 Proposed Rules: USGPOOFR/subscriber/new, enter your email address, then 9743...... 22167 310...... 22604 follow the instructions to join, leave, or manage your 9744...... 22169 10 CFR subscription. 9745...... 22171 75...... 19603 PENS (Public Law Electronic Notification Service) is an e-mail 9746...... 22347 430...... 22587 service that notifies subscribers of recently enacted laws. Executive Orders: 13198 (Amended by Proposed Rules: To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html EO 13831)...... 20715 Ch. I ...... 19464 and select Join or leave the list (or change settings); then follow 13280 (Amended by 37...... 22413 the instructions. EO 13831)...... 20715 FEDREGTOC and PENS are mailing lists only. We cannot 13342 (Amended by 12 CFR respond to specific inquiries. EO 13831)...... 20715 201...... 21167 Reference questions. Send questions and comments about the 13397 (Amended by 1026...... 19159 Federal Register system to: [email protected] EO 13831)...... 20715 Proposed Rules: 13559 (Amended by 1...... 22312 The Federal Register staff cannot interpret specific documents or EO 13831)...... 20715 3...... 22312 regulations. 13199 (Revoked by 5...... 22312 CFR Checklist. Effective January 1, 2009, the CFR Checklist no EO 13831)...... 20715 23...... 22312 longer appears in the Federal Register. This information can be 13498 (Revoked by 24...... 22312 found online at http://bookstore.gpo.gov/. EO 13831)...... 20715 32...... 22312 13831...... 20715 34...... 22312 FEDERAL REGISTER PAGES AND DATE, MAY 13832...... 22343 46...... 22312 Administrative Orders: 208...... 22312 18913–19156...... 1 Memorandums: 211...... 22312 19157–19426...... 2 Memorandum of April 215...... 22312 19427–19602...... 3 26, 2018 ...... 19157 217...... 22312 19603–19904...... 4 Notices: 223...... 22312 19905–20706...... 7 Notice of May 9, 225...... 22312 2018 ...... 21839 252...... 22312 20707–21164...... 8 Notice of May 14, 324...... 22312 21165–21706...... 9 2018 ...... 22585 325...... 22312 21707–21840...... 10 Presidential 327...... 22312 21841–22176...... 11 Determinations: 347...... 22312 22177–22346...... 14 No. 2018-05 of April 390...... 22312 22347–22586...... 15 20, 2018 ...... 20707 1290...... 19188 22587–22830...... 16 No. 2018-06 of April 1291...... 19188

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13 CFR 114...... 22193 21883, 21885, 21886, 21888, 47 CFR 22201, 22389, 22391, 22592 120...... 19915, 19921 117...... 22193 1 ...... 19186, 19440, 21722, 120...... 22193 326...... 19180 21927 14 CFR 123...... 22193 Proposed Rules: 2...... 19976 23...... 19427, 21850 129...... 22193 100...... 19656 8...... 21927 25...... 18934, 19176 179...... 22193 117...... 19659 20...... 21927 39 ...... 19176, 19615, 19922, 211...... 22193 151...... 21214 25...... 22391 19925, 19928, 20719, 21169, 507...... 22193 165 ...... 19025, 19189, 22225 51...... 22208 573...... 19934 21855, 21858, 21861, 21867, 37 CFR 54...... 18948, 18951 22349, 22351, 22354, 22358, 600...... 19936 63...... 21181 22360, 22362, 22589 880...... 19626 Proposed Rules: 64...... 18951, 21723 71 ...... 19617, 19930, 19931, 1308...... 21826 42...... 21221 73 ...... 19186, 19459, 22209 202...... 22609 19933, 21870, 21871 Proposed Rules: 76...... 19461 73...... 18938 38 CFR 90...... 19976 97...... 20725, 20728 3...... 22428 Proposed Rules: 201...... 22224 3...... 20735 Proposed Rules: 17...... 21893, 21897 Chapter I...... 21747 21...... 19021 343...... 22224 0...... 20011 25...... 22214 1308...... 21834 40 CFR 1...... 19660 39 ...... 19466, 19648, 19983, 22 CFR 52 ...... 19438, 19631, 19637, 2...... 19660, 20011 20740, 20743, 20745, 20748, 21174, 21178, 21719, 21907, 15...... 19660 20751, 21191, 21194, 21196, 50...... 21872 25...... 19660, 21746 51...... 21872 21909, 22203, 22207 21199, 21946, 21948, 21951, 62...... 19184 30...... 19660 21953, 21955, 21962, 21964, 23 CFR 80...... 22593 54...... 19196 21966, 22219, 22222, 22414, 180 ...... 19968, 19972, 22595 64...... 21983 22417, 22420, 22422, 22426 710...... 21709 73...... 21995 Proposed Rules: Proposed Rules: 76...... 19033 71 ...... 19469, 19471, 19472, 49...... 20775 625...... 21972 90...... 20011 19474, 19650, 19653, 19655, 51...... 19026 19986, 19987, 21968, 21970 101...... 19660 26 CFR 52 ...... 19191, 19194, 19476, Chapter II...... 21684 19479, 19483, 19495, 19497, 54...... 19431 17 CFR 20002, 21226, 21233, 21235, 48 CFR 28 CFR 21238, 21977, 22227, 22436 Ch. 1...... 19144, 19150 232...... 22190 55...... 21254 249...... 22190 32...... 22367 16...... 19145 62...... 19195 19...... 19146 Proposed Rules: 29 CFR 63 ...... 19499, 22438, 22754 22...... 19148 210...... 20753 81 ...... 21238, 21977, 22235 240...... 21416, 21574 1910...... 19936 49...... 19149 152...... 20004 52...... 19148 249...... 21416 2590...... 19431 156...... 20004 275...... 21203 4022...... 22387 201...... 19641 174...... 20004 212...... 19641 279...... 21416 Proposed Rules: 180 ...... 20004, 20008, 22439, 1910...... 19989 215...... 19645 18 CFR 22440 246...... 19641 252...... 19641 37...... 21342 30 CFR 42 CFR Proposed Rules: Proposed Rules: 414...... 21912 19 CFR Appx. I Ch. 2 ...... 19677 250...... 22128 431...... 19440 219...... 19677 201...... 21140 926...... 20773 Proposed Rules: 210...... 21140 938...... 20774, 22607 10...... 20008 411...... 21018 49 CFR 20 CFR 31 CFR 412 ...... 20164, 20972, 21104 1040...... 19647 404...... 21707 408...... 18939 413...... 20164, 21018 Proposed Rules: 418...... 20934 32 CFR 50 CFR 404...... 20646 424...... 20164, 21018 416...... 20646 291...... 19179 495...... 20164 17...... 21928, 22392 2004...... 19950 222...... 21738 21 CFR 45 CFR 224...... 21182 1...... 22193 33 CFR 144...... 19431 622...... 22210, 22601 11...... 20731, 22193 100 ...... 19179, 19628, 19630, 146...... 19431 635 ...... 21744, 21936, 22602 16...... 22193 21171, 22194, 22389 147...... 19431, 21925 648 ...... 18965, 18972, 18985, 101...... 19619, 20731 117 ...... 19630, 21710, 21711, 153...... 21925 19461, 19462 102...... 19429 22199, 22389, 22390 154...... 21925 660 ...... 19005, 19981, 22401 106...... 22193 147...... 20733, 22389 155...... 21925 665...... 21939 110...... 22193 165 ...... 18941, 18943, 18946, 156...... 21925 679...... 22411 111...... 22193 19436, 19963, 19965, 21712, 157...... 21925 Proposed Rules: 112...... 22193 21714, 21716, 21717, 21876, 158...... 21925 300...... 21748

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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 May 11, 2018 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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