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Vol. 85 Friday, No. 192 2, 2020

Pages 62187–62538

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 85, No. 192

Friday, October 2, 2020

Agriculture Department Consumer Product Safety Commission See Forest Service NOTICES See Rural Business-Cooperative Service Agency Information Collection Activities; Proposals, See Rural Housing Service Submissions, and Approvals: See Rural Utilities Service Procedures for Export of Noncomplying Products, 62282 Safety Standard for Multi-Purpose Lighters, 62281 Bureau of Consumer Financial Protection NOTICES Defense Department Agency Information Collection Activities; Proposals, See Engineers Corps Submissions, and Approvals, 62281 RULES Federal Acquisition Regulation: Centers for Disease Control and Prevention Circular 2021–01; Introduction, 62484 NOTICES Circular 2021–01; Small Entity Compliance Guide, Charter Renewal: 62484–62485 Advisory Committee on Immunization Practices, 62304 Inflation Adjustment of Acquisition-Related Thresholds, Meetings: 62485–62490 Advisory Committee on Breast Cancer in Young Women, NOTICES 62304 Meetings: Defense Policy Board, 62282–62283 Children and Families Administration Drug Enforcement Administration NOTICES Statement of Organization, Functions, and Delegations of RULES Schedules of Controlled Substances: Authority, 62304–62305 Placement of Crotonyl Fentanyl in Schedule I, 62215– Civil Rights Commission 62218 NOTICES Education Department Meetings: NOTICES Minnesota Advisory Committee, 62274 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Coast Guard Vocational Rehabilitation Program Corrective Action NOTICES Plan, 62285–62286 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 62315–62317 Energy Department See Federal Energy Regulatory Commission Commerce Department NOTICES See Foreign-Trade Zones Board Application To Amend Export Term for Existing Non-Free See International Trade Administration Trade Agreement Authorization: See Minority Business Development Agency Cheniere Marketing, LLC and Corpus Christi See National Institute of Standards and Technology Liquefaction, LLC, 62288–62289 See National Oceanic and Atmospheric Administration Energia Costa Azul, S. de R.L. de C.V., 62291–62292 RULES Texas LNG Brownsville LLC, 62286–62288 Identification of Prohibited Transactions To Implement Application: Executive Order 13942 and Address the Threat Posed Commonwealth LNG, LLC, 62292–62294 by TikTok and the National Emergency With Respect to ECA Liquefaction, S. de R.L. de C.V.; Amend Export the Information and Communications Technology and Term Through 31, 2050, for Existing Non- Services Supply Chain: Free Trade Agreement Authorization, 62289–62291 Preliminary Injunction Order Entered by a Federal District Court, 62214–62215 Engineers Corps NOTICES Committee for Purchase From People Who Are Blind or Availability of and Request for Comment on an Interim Severely Disabled Report for the Buffalo Bayou and Tributaries, Texas NOTICES Resiliency Study, 62284–62285 Procurement List; Additions and Deletions, 62280 Meetings: Inland Waterways Users Board, 62283–62284 Commodity Futures Trading Commission NOTICES Environmental Protection Agency Meetings; Sunshine Act, 62280 RULES Amendments Related to Marine Diesel Engine Emission Comptroller of the Currency Standards, 62218–62233 NOTICES NOTICES Agency Information Collection Activities; Proposals, Environmental Impact Statements; Availability, etc.: Submissions, and Approvals, 62367–62368 Weekly Receipt, 62298

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Grant Funding Guidance for State and Tribal Response Foreign-Trade Zones Board Programs for Fiscal Year 2021: NOTICES Comprehensive Environmental Response, Compensation Authorization of Production Activity: and Liability Act (CERCLA) or Superfund, 62299– H–J Enterprises, Inc./H–J International, Inc., Foreign- 62301 Trade Zone 102, St. Louis, MO, 62275 Proposed CERCLA Administrative Settlement: Night Vision Technology Solutions, LLC, Foreign-Trade Spokane Recycling Company, 62298–62299 Zone 105, Providence, RI, 62275

Federal Aviation Administration Forest Service PROPOSED RULES NOTICES Airspace Designations and Reporting Points: Environmental Impact Statements; Availability, etc.: Orange City, and Le Mars, IA, 62269–62270 Warm Springs, North River, and Glenwood-Pedlar Ranger Airworthiness Directives: Districts, George Washington National Forest; Pilatus Aircraft Limited Airplanes, 62266–62269 Highland, Bath, and Augusta Counties, VA; NOTICES Marlinton Ranger District, Monongahela National Waiver of Aeronautical Land Use Assurance: Forest; Pocahontas County, WV, Atlantic Coast Nampa Municipal Airport, Nampa, ID, 62363–62364 Pipeline and Supply Header, 62274

Federal Communications Commission General Services Administration NOTICES RULES Meetings: Federal Acquisition Regulation: Open Commission, 62301–62302 Circular 2021–01; Introduction, 62484 Federal Energy Regulatory Commission Circular 2021–01; Small Entity Compliance Guide, NOTICES 62484–62485 Combined Filings, 62295–62297 Inflation Adjustment of Acquisition-Related Thresholds, Initial Market-Based Rate Filings Including Requests for 62485–62490 Blanket Section 204 Authorizations: Health and Human Services Department Catalyst Power & Gas, LLC, 62294–62295 See Centers for Disease Control and Prevention Catalyst Power REPCo, LLC, 62297–62298 See Children and Families Administration ORNI 34, LLC, 62294 See Food and Drug Administration Request Under Blanket Authorization: Columbia Gas Transmission, LLC, 62297 See Health Resources and Services Administration See National Institutes of Health Federal Railroad Administration See Public Health Service NOTICES Agency Information Collection Activities; Proposals, Health Resources and Services Administration Submissions, and Approvals, 62364–62365 NOTICES Charter Renewal: Federal Reserve System Council on Graduate Medical Education, 62312 NOTICES Class Deviation from Competition Requirements: Change in Bank Control: Quality Improvement Capacity for Impact Project, 62311– Acquisitions of Shares of a Bank or Bank Holding 62312 Company, 62302–62303 Funding Denial: Quality Improvement Solutions for Sustained Epidemic Federal Trade Commission Control Project, 62312–62313 NOTICES Agency Information Collection Activities; Proposals, Homeland Security Department Submissions, and Approvals, 62303 See Coast Guard PROPOSED RULES Fish and Wildlife Service Affidavit of Support on Behalf of Immigrants, 62432–62481 NOTICES Environmental Assessments; Availability, etc.: Housing and Urban Development Department Proposed Habitat Conservation Plan for the Spring NOTICES Mountain Raceway Northern Expansion, Pahrump, Agency Information Collection Activities; Proposals, Nye County, NV, 62318–62320 Submissions, and Approvals: Lender Qualifications for Multifamily Accelerated Food and Drug Administration Processing Guide, 62318 NOTICES Agency Information Collection Activities; Proposals, Institute of Museum and Library Services Submissions, and Approvals: NOTICES Orphan Drugs, 62306–62309 Agency Information Collection Activities; Proposals, Guidance: Submissions, and Approvals: Bladder Cancer: Developing Drugs and Biologics for Maker/STEM Education Support for 21st Century Adjuvant Treatment, 62309–62310 Community Learning Centers Program Evaluation, Opioid Use Disorder: Endpoints for Demonstrating 62330–62331 Effectiveness of Drugs for Treatment, 62305–62306 Renal Cell Carcinoma: Developing Drugs and Biologics Interior Department for Adjuvant Treatment, 62310–62311 See Fish and Wildlife Service

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See National Park Service National Credit Union Administration RULES International Boundary and Water Commission, United Technical Amendments, 62207–62214 States and Mexico NOTICES National Foundation on the Arts and the Humanities Environmental Assessments; Availability, etc.: See Institute of Museum and Library Services Finding of No Significant Impact Arroyo Colorado at Harlingen Flood Flow Improvement Project, Cameron National Highway Traffic Safety Administration County Texas, 62322–62323 NOTICES Petition for Decision of Inconsequential Noncompliance: Porsche Cars North America, Inc., 62365–62367 International Trade Administration NOTICES National Institute of Standards and Technology Antidumping or Countervailing Duty Investigations, Orders, NOTICES or Reviews: Requests for Nominations: Crystalline Silicon Photovoltaic Cells, Whether or Not Civilian Innovation Advisory Board, 62279–62280 Assembled Into Modules, From the People’s Republic of China, 62275–62278 National Institutes of Health Meetings: NOTICES Advisory Committee on Supply Chain Competitiveness, Meetings: 62278 Center for Scientific Review, 62314 Eunice Kennedy Shriver National Institute of Child International Trade Commission Health & Human Development, 62313 NOTICES National Heart, Lung, and Blood Institute, 62313–62314 Antidumping or Countervailing Duty Investigations, Orders, National Institute of Allergy and Infectious Diseases, or Reviews: 62313 Tetrahydrofurfuryl Alcohol From China, 62323–62324 National Oceanic and Atmospheric Administration Justice Department PROPOSED RULES See Drug Enforcement Administration Fisheries Off West Coast States; Pacific Coast Groundfish NOTICES Fishery: Agency Information Collection Activities; Proposals, Pacific Coast Groundfish Fishery Management Plan; Submissions, and Approvals, 62324 Amendment 29; 2021–22 Biennial Specifications and Management Measures, 62492–62537 Labor Department National Park Service See Occupational Safety and Health Administration See Workers Compensation Programs Office NOTICES NOTICES Inventory Completion: Initial Determination Revising the List of Products Department of Anthropology Museum at the University of Requiring Federal Contractor Certification as to Forced California, Davis, Davis, CA; Correction, 62320– or Indentured Child Labor, 62325–62326 62321 List of Goods Produced by Child Labor or Forced Labor; Native American Human Remains and Associated 2020 Update, 62325 Funerary Objects in the Control of the Department of the Interior, Bureau of Land Management, New Mexico State Office, Santa Fe, NM; Correction, Minority Business Development Agency 62321–62322 NOTICES Meetings: National Science Foundation President’s Advisory Commission on Asian Americans NOTICES and Pacific Islanders, 62278–62279 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 62331–62332 National Aeronautics and Space Administration Meetings: RULES Advisory Committee for Biological Sciences, 62331 Federal Acquisition Regulation: Circular 2021–01; Introduction, 62484 Nuclear Regulatory Commission Circular 2021–01; Small Entity Compliance Guide, RULES 62484–62485 Reactor Vessel Material Surveillance Program, 62199–62207 Inflation Adjustment of Acquisition-Related Thresholds, PROPOSED RULES 62485–62490 Reactor Vessel Material Surveillance Program, 62234–62239 NOTICES NOTICES Agency Information Collection Activities; Proposals, Application for Standard Design Certification: Submissions, and Approvals: U.S. EPR, 62337–62339 Term and Condition Notification of Harassment Form, Appointments: 62328 Performance Review Boards for Senior Executive Service, Environmental Impact Statements; Availability, etc.: 62332–62333 Soil Cleanup Activities at Santa Susana Field Laboratory, Exemption: Ventura County, CA; Record of Decision, 62328– Entergy Nuclear Operations, Inc. Indian Point Nuclear 62330 Generating Unit Nos. 2 and 3, 62333–62337

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Occupational Safety and Health Administration Surety Bond Guarantee Program Fees, 62362–62363 NOTICES Charter Renewal: Surface Transportation Board National Advisory Committee on Occupational Safety PROPOSED RULES and Health, 62326–62327 Petition for Rulemaking: Montana Rail Link, Inc., Classification of Carriers, 62271– Postal Regulatory Commission 62273 NOTICES New Postal Products, 62339–62340 Transportation Department See Federal Aviation Administration Presidential Documents See Federal Railroad Administration EXECUTIVE ORDERS See National Highway Traffic Safety Administration Children and Youth: Newborn and Infant Children; Protection Efforts (EO Treasury Department 13952), 62187–62189 See Comptroller of the Currency ADMINISTRATIVE ORDERS Alaska to Alberta Railway Development Corp.; Unified Carrier Registration Plan Authorization To Construct, Connect, Operate, and NOTICES Maintain Railway Facilities at Canada-U.S. Meetings; Sunshine Act, 62368–62370 International Boundary (Presidential Permit of 28, 2020), 62191–62193 Veterans Affairs Department Public Health Service NOTICES NOTICES Privacy Act; System of Records, 62406–62430 Meetings: Workers Compensation Programs Office National Vaccine Advisory Committee, 62314–62315 NOTICES Rural Business-Cooperative Service Agency Information Collection Activities; Proposals, RULES Submissions, and Approvals: OneRD Guaranteed Loan Regulation; Correction, 62195– Division of Energy Employees Occupational Illness 62199 Authorization Forms, 62327–62328

Rural Housing Service RULES Separate Parts In This Issue OneRD Guaranteed Loan Regulation; Correction, 62195– 62199 Part II Small Business Administration, 62372–62403 Rural Utilities Service RULES Part III OneRD Guaranteed Loan Regulation; Correction, 62195– Veterans Affairs Department, 62406–62430 62199 Part IV Securities and Exchange Commission Homeland Security Department, 62432–62481 NOTICES Application: Part V Frost Family of Funds and Frost Investment Advisors, Defense Department, 62484–62490 LLC, 62356–62357 General Services Administration, 62484–62490 Meetings; Sunshine Act, 62361 National Aeronautics and Space Administration, 62484– Self-Regulatory Organizations; Proposed Rule Changes: 62490 Fixed Income Clearing Corp., 62348–62353 MEMX, LLC, 62340–62342 Part VI National Securities Clearing Corp., 62342–62348 Commerce Department, National Oceanic and Atmospheric New York Stock Exchange, LLC, 62353–62362 Administration, 62492–62537 Small Business Administration PROPOSED RULES Small Business Size Standards: Reader Aids Agriculture, Forestry, Fishing and Hunting; Mining, Consult the Reader Aids section at the end of this issue for Quarrying, and Oil and Gas Extraction; Utilities; phone numbers, online resources, finding aids, and notice Construction, 62239–62266 of recently enacted public laws. Transportation and Warehousing; Information; Finance To subscribe to the Federal Register Table of Contents and Insurance; Real Estate and Rental and Leasing, electronic mailing list, go to https://public.govdelivery.com/ 62372–62403 accounts/USGPOOFR/subscriber/new, enter your e-mail NOTICES address, then follow the instructions to join, leave, or Change to Secondary Market Program, 62363 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.

3 CFR 32 (3 documents) ...... 62485 36 (3 documents) ...... 62485 Executive Orders: 42 (3 documents) ...... 62485 13952...... 62187 50 (3 documents) ...... 62485 Administrative Orders: 52 (3 documents) ...... 62485 Presidential Permits: 53 (3 documents) ...... 62485 Presidential Permit of 49 CFR , 2020 ...... 62191 Proposed Rules: 1201...... 62271 7 CFR 1779 (3 documents) ...... 62195 50 CFR 3575 (3 documents) ...... 62195 Proposed Rules: 4279 (3 documents) ...... 62195 660...... 62492 4287 (3 documents) ...... 62195 5001 (3 documents) ...... 62195 8 CFR Proposed Rules: 213a...... 62432 10 CFR 50...... 62199 Proposed Rules: 50...... 62234 12 CFR 700...... 62207 701...... 62207 702...... 62207 704...... 62207 705...... 62207 707...... 62207 708a...... 62207 708b...... 62207 709...... 62207 717...... 62207 725...... 62207 740...... 62207 741...... 62207 747...... 62207 748...... 62207 750...... 62207 13 CFR Proposed Rules: 121 (2 documents) ...... 62239, 62372 14 CFR Proposed Rules: 39...... 62266 71...... 62269 15 CFR Ch. VII...... 62214 21 CFR 1308...... 62215 40 CFR 1042...... 62218 48 CFR Ch. 1 (6 documents) ...... 62484 1 (3 documents) ...... 62485 2 (3 documents) ...... 62485 3 (3 documents) ...... 62485 5 (3 documents) ...... 62485 6 (3 documents) ...... 62485 8 (3 documents) ...... 62485 9 (3 documents) ...... 62485 10 (3 documents) ...... 62485 12 (3 documents) ...... 62485 13 (3 documents) ...... 62485 15 (3 documents) ...... 62485 16 (3 documents) ...... 62485 17 (3 documents) ...... 62485 19 (3 documents) ...... 62485 22 (3 documents) ...... 62485 26 (3 documents) ...... 62485

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Federal Register Presidential Documents Vol. 85, No. 192

Friday, October 2, 2020

Title 3— Executive Order 13952 of , 2020

The President Protecting Vulnerable Newborn and Infant Children

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows: Section 1. Purpose. Every infant born alive, no matter the circumstances of his or her birth, has the same dignity and the same rights as every other individual and is entitled to the same protections under Federal law. Such laws include the Emergency Medical Treatment and Labor Act (EMTALA), 42 U.S.C. 1395dd, which guarantees, in hospitals that have an emergency department, each individual’s right to an appropriate medical screening examination and to either stabilizing treatment or an appropriate transfer. They also include section 504 of the Rehabilitation Act (Rehab Act), 29 U.S.C. 794, which prohibits discrimination against individuals with disabilities by programs and activities receiving Federal funding. In addition, the Born-Alive Infants Protection Act, 1 U.S.C. 8, makes clear that all infants born alive are individuals for purposes of these and other Federal laws and are therefore afforded the same legal protections as any other person. Together, these laws help protect infants born alive from discrimination in the provision of medical treatment, including infants who require emer- gency medical treatment, who are premature, or who are born with disabil- ities. Such infants are entitled to meaningful and non-discriminatory access to medical examination and services, with the consent of a parent or guardian, when they present at hospitals receiving Federal funds. Despite these laws, some hospitals refuse the required medical screening examination and stabilizing treatment or otherwise do not provide potentially lifesaving medical treatment to extremely premature or disabled infants, even when parents plead for such treatment. Hospitals might refuse to provide treatment to extremely premature infants—born alive before 24 weeks of gestation—because they believe these infants may not survive, may have to live with long-term disabilities, or may have a quality-of-life deemed to be inadequate. Active treatment of extremely premature infants has, how- ever, been shown to improve their survival rates. And the denial of such treatment, or discouragement of parents from seeking such treatment for their children, devalues the lives of these children and may violate Federal law. Sec. 2. Policy. It is the policy of the United States to recognize the human dignity and inherent worth of every newborn or other infant child, regardless of prematurity or disability, and to ensure for each child due protection under the law. Sec. 3. (a) The Secretary of Health and Human Services (Secretary) shall ensure that individuals responsible for all programs and activities under his jurisdiction that receive Federal funding are aware of their obligations toward infants, including premature infants or infants with disabilities, who have an emergency medical condition in need of stabilizing treatment, under EMTALA and section 504 of the Rehab Act, as interpreted consistent with the Born-Alive Infants Protection Act. In particular, the Secretary shall ensure that individuals responsible for such programs and activities are aware that they are not excused from complying with these obligations, including the obligation to provide an appropriate medical screening examination and stabilizing treatment or transfer, when extremely premature infants are born alive or infants are born with disabilities. The Secretary shall also ensure

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that individuals responsible for such programs and activities are aware that they may not unlawfully discourage parents from seeking medical treatment for their infant child solely because of their infant child’s disability. The Secretary shall further ensure that individuals responsible for such programs and activities are aware of their obligations to provide stabilizing treatment that will allow the infant patients to be transferred to a more suitable facility if appropriate treatment is not possible at the initial location. (b) The Secretary shall, as appropriate and consistent with applicable law, ensure that Federal funding disbursed by the Department of Health and Human Services is expended in full compliance with EMTALA and section 504 of the Rehab Act, as interpreted consistent with the Born- Alive Infants Protection Act, as reflected in the policy set forth in section 2 of this order. (i) The Secretary shall, as appropriate and to the fullest extent permitted by law, investigate complaints of violations of applicable Federal laws with respect to infants born alive, including infants who have an emergency medical condition in need of stabilizing treatment or infants with disabil- ities whose parents seek medical treatment for their infants. The Secretary shall also clarify, in an easily understandable format, the process by which parents and hospital staff may submit such complaints for investigation under applicable Federal laws. (ii) The Secretary shall take all appropriate enforcement action against individuals and organizations found through investigation to have violated applicable Federal laws, up to and including terminating Federal funding for non-compliant programs and activities. (c) The Secretary shall, as appropriate and consistent with applicable law, prioritize the allocation of Department of Health and Human Services discretionary grant funding and National Institutes of Health research dollars for programs and activities conducting research to develop treatments that may improve survival—especially survival without impairment—of infants born alive, including premature infants or infants with disabilities, who have an emergency medical condition in need of stabilizing treatment. (d) The Secretary shall, as appropriate and consistent with applicable law, prioritize the allocation of Department of Health and Human Services discretionary grant funding to programs and activities, including hospitals, that provide training to medical personnel regarding the provision of life- saving medical treatment to all infants born alive, including premature infants or infants with disabilities, who have an emergency medical condition in need of stabilizing treatment. (e) The Secretary shall, as necessary and consistent with applicable law, issue such regulations or guidance as may be necessary to implement this order. Sec. 4. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect: (i) the authority granted by law to an executive department or agency, or the head thereof; or (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

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(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

THE WHITE HOUSE, September 25, 2020.

[FR Doc. 2020–21960 Filed 10–1–20; 8:45 am] Billing code 3295–F1–P

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Federal Register Presidential Documents Vol. 85, No. 192

Friday, October 2, 2020

Title 3— Presidential Permit of September 28, 2020

The President Authorizing the Alaska to Alberta Railway Development Cor- poration To Construct, Connect, Operate, and Maintain Rail- way Facilities at the International Boundary Between the United States and Canada

By virtue of the authority vested in me as President of the United States of America, I hereby grant this Presidential permit, subject to the conditions herein set forth, to the Alaska to Alberta Railway Development Corporation (the ‘‘permittee’’). The permittee is a private corporation organized under the laws of the Government of Alberta, Canada, and registered in the State of Alaska. Permission is hereby granted to the permittee to construct, connect, operate, and maintain certain railway Border facilities, as described herein, at the international border of the United States and Canada at Southeast Fairbanks Census Area, Alaska, in the Ladue River Valley at 63°15’N and 141°W, approximately 45 miles due north over land from the Alcan Border Crossing on Alaska Route 2 (also known as the Alaska Highway) and approxi- mately 60 miles due east over land from the town of Tok, Alaska. This permit does not affect the applicability of any otherwise relevant laws and regulations. As confirmed in Article 2 below, the Border facilities shall remain subject to all such laws and regulations. The term ‘‘Facilities,’’ as used in this permit, means the portion in the United States of the ‘‘Alaska to Alberta Railway’’ project associated with the permittee’s application for a Presidential permit filed on , 2019, and any land, structures, installations, or equipment appurtenant thereto. The term ‘‘Border facilities,’’ as used in this permit, means those parts of the Facilities extending 1.0 miles from the international border between the United States and Canada, and any land, structures, installations, or equipment appurtenant thereto. This permit is subject to the following conditions: Article 1. The Border facilities herein described, and all aspects of their operation, shall be subject to all the conditions, provisions, and requirements of this permit and any subsequent Presidential amendment to it. This permit may be terminated, revoked, or amended at any time at the sole discretion of the President of the United States (the ‘‘President’’), with or without advice provided by any executive department or agency (agency). The per- mittee shall make no substantial change in the Border facilities, in the location of the Border facilities, or in the operation authorized by this permit unless the President has approved the change in an amendment to this permit or in a new permit. Article 2. The standards for, and the manner of, construction, connection, operation, and maintenance of the Border facilities shall be subject to inspec- tion by the representatives of appropriate Federal, State, and local agencies. Officers and employees of such agencies who are duly authorized and per- forming their official duties shall be granted free and unrestricted access to said Border facilities by the permittee. The Border facilities, including the construction, connection, operation, and maintenance of the Border facili- ties, shall be subject to all applicable laws and regulations, including laws

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and regulations governing railway safety or issued or administered by the Committee on Foreign Investment in the United States. Article 3. Upon the termination, revocation, or surrender of this permit, unless otherwise decided by the President, the permittee, at its own expense, shall remove the Border facilities within such time as the President may specify. If the permittee fails to comply with an order to remove, or to take such other appropriate action with respect to, the Border facilities, the President may direct an appropriate official or agency to take possession of the Border facilities—or to remove the Border facilities or take other action—at the expense of the permittee. The permittee shall have no claim for damages caused by any such possession, removal, or other action. Article 4. When, in the judgment of the President, ensuring the national security of the United States requires entering upon and taking possession of any of the Border facilities or parts thereof, and retaining possession, management, or control thereof for such a length of time as the President may deem necessary, the United States shall have the right to do so, provided that the President or his designee has given due notice to the permittee. The United States shall also have the right thereafter to restore possession and control to the permittee. In the event that the United States exercises the rights described in this article, it shall pay to the permittee just and fair compensation for the use of such Border facilities, upon the basis of a reasonable profit in normal conditions, and shall bear the cost of restoring the Border facilities to their previous condition, less the reasonable value of any improvements that may have been made by the United States. Article 5. Any transfer of ownership or control of the Border facilities, or any part thereof, or any changes to the name of the permittee, shall be immediately communicated in writing to the President or his designee, and shall include information identifying any transferee. Notwithstanding any such transfers or changes, this permit shall remain in force subject to all of its conditions, permissions, and requirements, and any amendments thereto, unless subsequently terminated, revoked, or amended by the Presi- dent. Article 6. (1) The permittee is responsible for acquiring any right-of-way grants or easements, permits, and other authorizations as may become nec- essary or appropriate. (2) The permittee shall hold harmless and indemnify the United States from any claimed or adjudged liability arising out of construction, connection, operation, or maintenance of the Border facilities, including environmental contamination from the release, threatened release, or discharge of hazardous substances or hazardous waste. (3) To ensure the safe operation of the Border facilities, the permittee shall maintain them and every part of them in a condition of good repair and in compliance with applicable law. Article 7. To the extent authorized by law, the permittee shall provide to U.S. Customs and Border Protection and any other relevant United States Government agencies, at no cost to the United States, suitable inspection facilities, at a mutually agreed upon site, for officers and employees of such agencies to perform their duties. The provision of such facilities shall include, to the extent deemed necessary by such agencies, the transfer of title to any such facilities (including the site) to the United States. The inspection facilities shall meet the latest agency design standards and any operational requirements, including facilities for the Rail-Vehicle and Cargo Inspection Systems, inspection and office space, personnel parking and rest- rooms, utilities, and an access road. To the extent authorized by law, the permittee shall be responsible for any ongoing maintenance or necessary improvements to the inspection facilities, including to comply with updated agency design standards, and for the full cost of providing services at such facilities.

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Article 8. The permittee shall file with the President or his designee, and with appropriate agencies, such sworn statements or reports with respect to the Border facilities, or the permittee’s activities and operations in connec- tion therewith, as are now, or may hereafter, be required under any law or regulation of the United States Government or its agencies. These reporting obligations do not alter the intent that this permit be operative as a directive issued by the President alone. Article 9. Upon request, the permittee shall provide appropriate information to the President or his designee with regard to the Border facilities. Such requests could include, for example, information concerning current condi- tions or anticipated changes in ownership or control, construction, connec- tion, operation, or maintenance of the Border facilities. Article 10. The permittee shall provide written notice to the President or his designee at the time that the construction authorized by this permit begins, at such time as such construction is completed, interrupted, or discontinued, and at other times as may be requested by the President. Article 11. The permittee shall provide written notice to the President or his designee describing any material investment in the Facilities, direct or indirect, by non-Canadian foreign investors of any kind, including individ- uals, corporations or other non-governmental entities, and governmental enti- ties. Such written notice shall be provided at such time as an agreement for any such investment is entered into, or 30 days before any such invest- ment is made, whichever is earlier, and at other times as may be requested by the President. Article 12. This permit shall expire 10 years from the date of its issuance if the permittee has not commenced construction of the Border facilities by that date. Article 13. This permit is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees or agents, or any other person. IN WITNESS WHEREOF, I, DONALD J. TRUMP, President of the United States of America, have hereunto set my hand this twenty-eighth day of September, 2020, in the City of Washington, District of Columbia.

[FR Doc. 2020–21964

Filed 10–1–20; 8:45 am] Billing code 3295–F1–P

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Rules and Regulations Federal Register Vol. 85, No. 192

Friday, October 2, 2020

This section of the FEDERAL REGISTER delivery of four of its existing Correction of language at contains regulatory documents having general guaranteed loan programs: Community § 5001.115(n) and an addition of a new applicability and legal effect, most of which Facilities (CF) administered by the Rural paragraph (s) that was inadvertently are keyed to and codified in the Code of Housing Service; Water and Waste missed. Federal Regulations, which is published under Disposal (WWD) administered by the Removal of § 5001.118(b)(3) as this 50 titles pursuant to 44 U.S.C. 1510. Rural Utilities Service; and, Business information was duplicative. The Code of Federal Regulations is sold by and Industry (B&I) and Rural Energy for Modification to the list of regulated the Superintendent of Documents. America Program (REAP) administered lending entities at § 5001.130(b) to by the Rural Business-Cooperative include other lending entities not Service. The Agency discovered that specified, but that meet the eligibility DEPARTMENT OF AGRICULTURE errors and omissions were made during requirements. This language was the drafting process that impact the inadvertently left out of the regulation Rural Business-Cooperative Service successful implementation of this during drafting. regulation. The following items will be Addition of paragraph Rural Housing Service addressed in this technical correction: § 5001.121(a)(4) to include refinancing The removal of Supplementary as an eligible use of CF loan funds. The Rural Utilities Service Information language referring to a paragraph was inadvertently left out reduced guarantee in the Agency’s during the drafting of the regulation. 7 CFR Parts 1779, 3575, 4279, 4287, response to a question regarding Addition of paragraph and 5001 issuance of the loan note guarantee prior § 5001.121(c)(12) to include refinancing [Docket No. RUS–19–Agency–0030] to the completion of construction. The as an eligible use of WWD loan funds. Agency determined that the reduction is The paragraph was inadvertently left RIN 0572–AC43 not necessary due to implementation of out during the drafting of the regulation. other risk mitigation measures. Addition of paragraph OneRD Guaranteed Loan Regulation; § 5001.121(c)(12) to include refinancing Correction Modifying language at § 5001.2 (e) to clarify intent. as an eligible use of B&I loan funds. The AGENCY: Rural Business-Cooperative Division B, Title I of the CARES Act paragraph was inadvertently left out Service, Rural Housing Service, and supplemented existing authority in 7 during the drafting of the regulation. Removal of the last sentence in Rural Utilities Service, Department of CFR part 4279 for the Business and § 5001.202(b)(4)(ii). This sentence was Agriculture (USDA). Industry program and was implemented inadvertently left in during the drafting ACTION: Final rule; technical correction. after development of the OneRD final of the regulation. rule, but prior to the effective date of the SUMMARY: On 14, 2020, Rural Removal of language at § 5001.205(e) OneRD rule. In order to continue to referencing closure of a lender’s Development’s Rural Business- administer loans authorized under the Cooperative Service, Rural Housing construction loan as the reference CARES Act, 7 CFR part 4279 and should be to the guaranteed loan. Service, and Rural Utilities Service Subpart B of Part 4287 are still needed. referred to as ‘‘the Agency’’ or ‘‘Agency’’ Additional items were added to the Therefore, it is necessary to remove list of provisional content for a complete promulgated the OneRD Guaranteed Supplementary Information language Loan regulation. Following final application at § 5001.303(c). These and delete the amendment to remove items are included in the program implementation of this final rule, the and reserve 7 CFR part 4279 and Agency found that corrections due to specific areas but were not included in Subpart B of 7 CFR part 4287. These this section. error, omissions, or need for clarity were parts continue to be necessary to necessary. This technical correction Modifying language at § 5001.408 originate Business & Industry CARES clarifying how a lender may obtain makes amendments to address these Act Program loans, and service Business necessary changes. participation in the loan or assign all or and Industry Cares Act Program loans part of the guaranteed portion of the DATES: Effective , 2020. and B&I loans guaranteed by the Agency guaranteed loan on the secondary FOR FURTHER INFORMATION CONTACT: For prior to October 1, 2020. Amendments market and that that any assignment by questions on this document contact have been added to revise 7 CFR 4279.1, the lender of the guaranteed portion of Thomas P. Dickson, Regulatory Division 4279.101, and 4287.101 accordingly. the loan must be accomplished in Team 2, Rural Development Innovation Modification of the definition of non- accordance with the conditions in the Center, U.S. Department of Agriculture, regulated lending entity at § 5001.3, to lender’s agreement and the assignment 1400 Independence Ave. SW, Stop remove language that does not apply nor of the guaranteed or non-guaranteed 1522, Washington, DC 20250; telephone, further the meaning of the definition. portion of the loan applies to all 202–690–4492; email, thomas.dickson@ Addition of language at § 5001.102(d) individuals, not just the borrower as usda.gov. to clarify that long-term financing to pay well as making changes to terminology. SUPPLEMENTARY INFORMATION: off a lender’s interim construction loan Modifying language at after project completion will not be § 5001.450(b)(1) to remove duplicative I. Need for Corrections treated as debt refinancing in this language. The Agency published a final rule on section. Modifying language at § 5001.452(b) , 2020, (85 FR 42494—42580) for Addition of language at end of to improve readability. the purpose of implementing a unified § 5001.102(d)(3) to clarify that (4) is Adding language at § 5001.453 to guaranteed loan platform for enhanced included with § 5001.102(d)(1) to (3). advise holders the Agency will provide

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a certificate of incumbency to verify the subpart are waived or altered for B&I [Removed and Reserved]’’, revise signature and title of the Agency official CARES Act Program Loans. The waivers instruction 7, and add amendatory text who signs the assignment guarantee and alterations are provided in to read as follows: agreement. § 4279.190 of this subpart. Other than ■ 7. Amend § 4287.101 by revising Removing § 5001.459(c) as it is no B&I CARES Act Program Loans, this paragraph (a) to read as follows: longer applicable. subpart is no longer used for making Modifying language at § 5001.511 to Business and Industry (B&I) loans § 4287.101 Introduction. improve readability. guaranteed by the Agency. Subpart B of (a) As of October 1, 2020, this subpart Removing § 5001.515(c) as it is no part 4287 of this chapter is retained for is specifically applicable to and only longer applicable. servicing B&I CARES Act Program contains regulations for servicing Removal of § 5001.524(d) which Loans and B&I loans guaranteed by the Business and Industry (B&I) Loans allowed the Agency to terminate the Agency prior to October 1, 2020. guaranteed by the Agency prior to loan note guarantee for good cause. The Requirements for B&I loans guaranteed October 1, 2020 and Business and Agency determined that this paragraph by the Agency after October 1, 2020 Industry loans under the authority of was duplicative of other language in the (other than B&I CARES Act Loans) may the Coronavirus Aid, Relief, and regulation. be found at 7 CFR part 5001. Economic Security Act (CARES Act) The Agency, while drafting the * * * * * (Pub. L. 116–136) to provide B&I regulation, inadvertently used sale and guarantees for loans needed as a result assign interchangeably when the correct Subpart B—Business and Industry of the Coronavirus Disease 2019 term is assign. The Agency is taking the Loans (COVID–19) pandemic for working opportunity to correct this. Various capital loan purposes to support ■ 3. On page 42518, in the first column, spelling and grammar items were also business operations and facilities in in part 4279, remove ‘‘Subpart B— corrected. rural areas (B&I CARES Act Program [Removed and Reserved]’’, revise Loans). Other than B&I CARES Act II. Corrections instruction 5, and add amendatory text Program Loans and B&I loans In FR Doc. 2020–13991, appearing on to read as follows: guaranteed by the Agency prior to ■ 5. Amend § 4279.101 by revising page 42494 in the Federal Register of October 1, 2020, this subpart is no paragraph (a) to read as follows: Tuesday, July 14, 2020, the following longer used for servicing B&I loans corrections are made: § 4279.101 Introduction. guaranteed by the Agency. ■ 1. On page 42511, in the first column, (a) Content. As of October 1, 2020, Requirements for B&I loans guaranteed under Subpart F—Servicing Provisions this subpart is specifically applicable to by the Agency after October 1, 2020 in the third paragraph under Loan Note and only contains loan processing (other than B&I CARES Act Loans) may Guarantee Construction titled Agency’s regulations for Business and Industry be found at 7 CFR part 5001. ■ Response: The last sentence is corrected loans under the authority of the 5. On page 42518, in the first column, to read ‘‘As this poses more risk to the Coronavirus Aid, Relief, and Economic in part 4287, remove Instruction 7. Agency, it will be mitigated with Security Act (CARES Act) (Pub. L. 116– * * * * * additional lender documentation and 136) to provide B&I guarantees for loans ■ 6. On page 42518, in the third column enhanced lender oversight along with needed as a result of the Coronavirus in the table of contents under ‘‘Subpart an additional lender fee.’’ Disease 2019 (COVID–19) pandemic for F-Servicing Provisions,’’ ‘‘5001.118 [Reserved]’’ is corrected to read Chapter XLII—[Corrected] working capital loan purposes to support business operations and ‘‘5001.518 [Reserved]’’. ■ 7. On page 42519, in the second PART 4279—GUARANTEED facilities in rural areas (B&I CARES Act column, in § 5001.2, the second LOANMAKING Program Loans). Some of the requirements of this subpart are waived sentence of paragraph (e) is revised to Subpart A—General or altered for B&I CARES Act Program read as follows: Loans. The waivers and alterations are ■ 2. On page 42517, in the third column, § 5001.2 Structure. provided in § 4279.190 of this subpart. in part 4279, remove ‘‘Subpart A— * * * * * This subpart is supplemented by [Removed and Reserved]’’, revise (e) * * * Loan provisions cover subpart A of this part, which contains instruction 4, and add amendatory text interest rates, term length, loan general guaranteed loan regulations, and to read as follows:. schedule, repayment, lender fees, loan subpart B of part 4287 of this chapter, ■ 4. Amend § 4279.1 by revising amounts, percentage of guarantee, and which contains loan servicing paragraph (a) to read as follows: assignment of a guaranteed loan. * * * regulations. Other than the B&I CARES * * * * * Act Program Loans, this subpart is no § 4279.1 Introduction. ■ 8. On page 42523, in the second longer used for loan processing (a) As of October 1, 2020, this subpart column, in § 5001.3, the definition of requirements for Business and Industry is specifically applicable to and only ‘‘Non-regulated lending entity’’ is (B&I) loans guaranteed by the Agency. contains regulations for Business and revised to read as follows: Industry loans under the authority of Requirements for regular B&I loans the Coronavirus Aid, Relief, and (other than the B&I CARES Act Program § 5001.3 Definitions. Economic Security Act (CARES Act) Loans) may be found at 7 CFR part 5001. * * * * * (Pub. L. 116–136) to provide B&I * * * * * Non-regulated lending entity means a guarantees for loans needed as a result lending entity that is not subject to of the Coronavirus Disease 2019 PART 4287—SERVICING supervision and examination by an agency of the United States or a State. (COVID–19) pandemic for working Subpart B—Servicing Business and capital loan purposes to support Industry Guaranteed Loans * * * * * business operations and facilities in ■ 9. On page 43527, in the third column, rural areas (B&I CARES Act Program ■ 4. On page 42518, in the first column, and continuing on page 42528, in the Loans). Some of the requirements of this in part 4287, remove ‘‘Subpart B— first column, in § 5001.102, revise

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paragraph (d) introductory sentence and (12) Refinancing in accordance with § 5001.408 Participation or assignment of the last sentence of paragraph (d)(3) to § 5001.102(d). guaranteed loan. read as follows: * * * * * (a) General. The lender may obtain ■ participation in the loan or assign all or § 5001.102 Project eligibility—general. 13. On page 42538 in the first column in § 5001.130, revise paragraph (b) part of the guaranteed portion of the * * * * * introductory text and add paragraph guaranteed loan on the secondary (d) Debt refinancing. The Agency can (b)(10) to read as follows: market subject to the conditions guarantee loans for debt refinancing, as specified in paragraphs (a)(1) through described in paragraphs (d)(1) through § 5001.130 Lender Eligibility (5) of this section or retain the entire (5) of this section. Longer-term Requirements. guaranteed loan. financing to pay off a lender’s interim * * * * * * * * * * construction loan after project (b) Regulated lending entities. (2) * * * Any assignment by the completion will not be treated as debt Regulated lending entities identified in lender of the guaranteed portion of the refinancing. An eligible debt refinancing paragraphs (b)(1) through (10) of this loan must be accomplished in project is: section are eligible to receive a loan accordance with the conditions in the * * * * * guarantee under this part without lender’s agreement and the provisions of (3) * * * Such guaranteed debt shall documentation to the Agency provided this section. The holders and the not be included in the amount of they are subject to supervision and borrower have no rights or obligations to applicant lender debt when calculating credit examination by the applicable one another. * * * agency of the United States or a state, the maximum percentage of the total use * * * * * or were created specifically by state of funds in the new guaranteed loan as (4) Prohibition. The lender must not statute and operate under the direct stated in paragraph (d)(2) of this section; assign or participate any amount of the supervision of a state government and, guaranteed or non-guaranteed portion of authority. * * * * * the loan to the borrower, borrower’s * * * * * officers, directors, stockholders, other § 5001.105 Corrected (10) Other lending entities not owners, or to members of their ■ 10. On page 42530 in the second specified in paragraphs (b)(1) through immediate families, or to a parent column in § 5001.105 paragraph (b)(21) (9) of this section that meet the company, an affiliate, or a subsidiary of is revised to read as follows: requirements as specified in this the borrower. paragraph (b). § 5001.105 Eligible B&I projects and (5) Secondary market. The lender requirements. * * * * * must properly close their loan and fully disburse loan funds of a promissory * * * * * § 5001.202 [Corrected] (b) * * * note for the purposes intended prior to ■ 14. On page 42543 in the third column assignment of the guaranteed portion of (21) Development and construction of and continuing onto page 42544 in the RES, including modification of existing the promissory note(s) on the secondary first column in § 5001.202, remove the market. The lender can assign all or part systems that are commercially available last sentence in paragraph (b)(4)(ii). and that are not otherwise eligible under of the guaranteed portion of the loan REAP, or if funding is not available in § 5001.205 [Corrected] only if the loan is not in default. (c) Distribution of proceeds. The the REAP program. ■ 15. On page 42545 in the third column lender must apply all loan payments in § 5001.205, remove the second * * * * * and collateral proceeds received, after ■ sentence in paragraph (e)(2) 11. On page 42533 in the third column payment of liquidation expenses, to the introductory text. in § 5001.115, revise paragraph (n) and guaranteed and unguaranteed portions ■ 16. On page 42548 in the second add paragraph (s) to read as follows: of the loan on a pro rata basis. column in § 5001.303, revise paragraph (d) * * * § 5001.115 Ineligible projects—general. (c)(16) and add paragraphs (c)(17) and (3) A holder, upon written notice to * * * * * (18) to read as follows: (n) Owner-occupied housing. the lender and the Agency, may reassign § 5001.303 Applications for loan the unpaid guaranteed portion of the * * * * * guarantee. loan, in full, assigned under the (s) Self-storage facilities. * * * * * assignment guarantee agreement. * * * § 5001.118 [Corrected] (c) * * * * * * * * ■ 12. On page 42534 in the second (16) Certification regarding credit (e) Rights and liabilities. When a column in § 5001.118, remove elsewhere in accordance with guaranteed portion of a loan is assigned paragraph (b)(3). § 5001.126(b)(3) and (c)(2). to a holder using an assignment ■ 13. On page 42535 in the first and (17) Certification of significant guarantee agreement, the holder second columns in § 5001.121 add community support in accordance with succeeds to all rights of the lender paragraphs (a)(4), (b)(11), and (c)(12) to § 5001.126(b)(4) and (c)(3). under the loan note guarantee to the read as follows: (18) Copies of organizational extent of the portion purchased. * * * documents if not already provided with * * * * * § 5001.121 Eligible uses of loan funds. a preliminary eligibility review in ■ 18. On page 42563 in the second * * * * * accordance with § 5001.302. column in § 5001.450, revise paragraph (a) * * * ■ 17. On pages 42562 and continuing (b)(1) to read as follows: (4) Refinancing in accordance with onto page 42563 in § 5001.408, revise § 5001.102(d). paragraph (a), the first sentence of § 5001.450 General. (b) * * * paragraph (a)(2), paragraphs (a)(4) and * * * * * (11) Refinancing in accordance with (5), and (c), and the first sentences of (b) * * * § 5001.102(d), paragraphs (d)(3) and (e) introductory (1) The entire loan must be secured by (c) * * * text to read as follows: the same collateral with equal lien

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priority for the guaranteed and the lender has failed to pay the holder Agency will notify the lender and allow unguaranteed portions of the loan. The its pro-rata share of any payment made up to seven calendar days for the lender unguaranteed portion of the guaranteed by the borrower within 30 days of the to exercise their option to repurchase as loan will neither be paid first nor given lender’s receipt thereof from the provided in this section. any preference or priority over the borrower. When making written (1) Lender does not repurchase. If the guaranteed portion. A parity or junior demand on the lender, the holder must lender does not repurchase the unpaid lien position in the guaranteed loan concurrently send a copy of the demand guaranteed portion of a loan as provided collateral may be considered on a case- letter to the Agency. in paragraph (a) of this section, the by-case basis and must be approved by (1) The lender is encouraged to Agency will, within 30 calendar days the Agency. repurchase the guarantee, upon written after written demand to the Agency * * * * * demand of a holder, to facilitate the from the holder, purchase from the ■ 19. On page 42564 in the third column accounting of funds, resolve any loan holder the unpaid principal balance of in § 5001.452, revise paragraph (b) problem, and resolve the monetary the guaranteed portion together with introductory text to read as follows: default, where and when reasonable. accrued interest to date of repurchase or The benefit to the lender is that it may the interest termination date, whichever § 5001.452 Loan closing and conditions re-assign the guaranteed portion of the is sooner, less the lender’s servicing fee. precedent to issuance of loan note loan and then continue collection of its The guarantee will pay accrued interest guarantee. servicing fee, if any, when the monetary to the holder on the loan as determined * * * * * default is cured. under § 5001.450(c) of this part. (b) Simultaneously with or (2) When a lender receives a written (2) Written demand content. The immediately after the guaranteed loan demand for repurchase from a holder, holder must include in its written closing, the lender must provide to the the lender must notify any other holder demand to the Agency: Agency the guarantee fee, any secondary and the Agency within 30 calendar days (i) A copy of the written demand market assignment documents, and the of receipt of the written demand. The made upon the lender; following forms and documents: lender must inform all parties if the (ii) A copy of the lender’s denial to * * * * * lender will repurchase the unpaid repurchase the unpaid guaranteed ■ 20. On page 42566 in the first column guaranteed portion of the loan from the portion of the guaranteed loan; in§ 5001.453 revise paragraphs (a)(1) requesting holder. (iii) Evidence of the right to require and (3) to read as follows: (3) Upon repurchase the holder will payment from the Agency as provided re-assign the assignment guarantee by the holder or duly authorized agent. § 5001.453 Issuance of the loan note agreement to the lender without Such evidence must consist of the guarantee. recourse. original assignment guarantee * * * * * (b) Repurchase by lender for loan agreement properly assigned to the (a) * * * servicing purposes. If the lender, Agency without recourse including all (1) Loan note guarantee. The Agency borrower, and holder are unable to agree rights, title, and interest in the loan; will provide the lender the original loan to restructuring of loan repayment, (iv) The amount due including unpaid note guarantee document which the interest rate, or loan terms to resolve principal, unpaid interest to date of lender must attach to the promissory any loan problem or resolve any default, demand, and interest subsequently note. If the lender elected to use the and repurchase of the guaranteed accruing from date of demand to multi-note system, the Agency will portion of the loan is necessary to proposed payment date; and issue one loan note guarantee for the set adequately service the loan, the holder (v) When the initial holder has of promissory notes. must reassign the guaranteed portion of assigned its interest, the original * * * * * the loan to the lender. The reassignment assignment guarantee agreement and an (3) Certificate of incumbency and must be for an amount not less than the original of each Agency-approved signature. The Agency will provide the holder’s unpaid principal and accrued reassignment document in the chain of holder an executed certificate of Interest, in accordance with ownership, with the latest reassignment incumbency form to verify the signature § 5001.450(c) of this part, on such being assigned to the Agency without and title of the Agency official who portion less the lender’s servicing fee. recourse, including all rights, title, and signed the assignment guarantee (1) Upon repurchase the holder will interest in the guarantee. agreement. re-assign the assignment guarantee (3) Payment. Unless otherwise agreed * * * * * agreement to the lender without upon, payment will not be later than 30 recourse. calendar days from the date of demand. § 5001.459 [Corrected] (2) The lender must not repurchase (i) Upon request by the Agency, the ■ 21. On page 42567 in the third column from the holder for arbitrage or other lender must promptly furnish (within in § 5001.459, in the introductory text. purposes to further its own financial 30 calendar days of such request) a correct ‘‘through (c)’’ to read ‘‘and (b)’’ gain. current statement, certified by an and on page 42568 in the first column, (3) Any repurchase from a holder may appropriate authorized officer of the remove paragraph (c). only be made after the lender obtains lender, of the unpaid principal and ■ 22. On pages 42572 in the second the Agency’s written approval. interest then owed by the borrower on column and continuing onto page (c) Agency repurchase. If the lender the loan and the amount then owed to 42573, § 5001.511 is revised to read as does not repurchase the guaranteed any holder, along with the information follows: portion from the holder, the Agency necessary for the Agency to determine may, at its option, purchase such the appropriate amount due the holder. § 5001.511 Repurchases from holders. guaranteed portion of the loan for loan (ii) Any discrepancy between the (a) General. A holder can make servicing purposes. A holder can submit amount claimed by the holder and the written demand on either the lender or a written demand to the Agency for information submitted by the lender the Agency to repurchase the unpaid repurchase only if the lender declines to must be resolved between the lender guarantee portion of the loan when the repurchase. If a prior written demand and the holder before payment will be borrower is in monetary default or when was not made upon the lender, the approved. The Agency will notify both

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parties and such conflict will suspend When a borrower files either a Chapter after this date will be considered if it is the running of the 30-calendar-day 9 or Chapter 11 bankruptcy practical to do so, but the NRC is able payment requirement. restructuring plan, the Agency and to ensure consideration only for (iii) If a repurchase of a guaranteed lender shall meet to discuss the comments received on or before this loan includes the capitalization of bankruptcy procedure, the ability of the date. Comments received on this direct interest, interest accrued on the borrower to meet their restructuring final rule will also be considered to be capitalized interest will not be paid to plan, the lender’s treatment of accruing comments on a companion proposed the holder. interest, and potentially establish an rule published in the Proposed Rules (4) Subrogation. When the Agency interest termination date for the section of this issue of the Federal purchases a loan from a holder it guaranteed loan. If the restructuring Register. assumes all rights that were previously bankruptcy Chapter 9 or Chapter 11 is held by the holder. converted to a liquidation bankruptcy ADDRESSES: Please refer to Docket ID (5) Servicing fee. When the Agency Chapter 7 by court order, the interest NRC–2017–0151 when contacting the purchases the guaranteed portion of the termination date will be the date of such NRC about the availability of loan from a holder, the lender’s conversion. information for this action. You may servicing fee will stop on the date that obtain publicly-available information interest was last paid by the borrower. § 5001.515 [Corrected] related to this action by any of the The lender can neither charge a ■ 23. On page 42574 in the third column following methods: servicing fee to the Agency nor collect in § 5001.515, remove paragraph (c). • such fee from the Agency. Federal Rulemaking website: Go to (6) Accrued interest. If the Agency § 5001.524 [Corrected] https://www.regulations.gov and search repurchases 100 percent of the ■ 24. On page 42580 in the third column for Docket ID NRC–2017–0151. Address guaranteed portion of a loan and in § 5001.524, remove paragraph (d). questions about NRC dockets to Carol Gallagher; telephone: 301–415–3463; becomes the holder, interest accrual on Bette B. Brand, the loan will cease until the lender email: [email protected]. For Deputy Under Secretary, Rural Development. resumes remittance of the pro rata technical questions, contact the payments to the Agency. [FR Doc. 2020–21917 Filed 9–30–20; 4:15 pm] individuals listed in the FOR FURTHER (7) Establishing interest termination BILLING CODE 3410–XY–P INFORMATION CONTACT section of this date. When a guaranteed loan has been document. delinquent more than 60 calendar days • NRC’s Agencywide Documents and no holder comes forward or when NUCLEAR REGULATORY Access and Management System the lender has accelerated the account, COMMISSION (ADAMS): You may obtain publicly- and subject to the expiration of any 10 CFR Part 50 available documents online in the forbearance or workout agreement, the ADAMS Public Documents collection at lender, or the Agency at its sole [NRC–2017–0151] https://www.nrc.gov/reading-rm/ discretion, must issue a letter to the RIN 3150–AK07 adams.html. To begin the search, select holder(s) establishing the interest ‘‘ADAMS Public Documents’’ and then termination date in accordance with Reactor Vessel Material Surveillance select ‘‘Begin Web-based ADAMS § 5001.450(c)(2). Program Search.’’ For problems with ADAMS, (8) Obligations and rights. Purchase please contact the NRC’s Public by the Agency neither changes, alters, or AGENCY: Nuclear Regulatory Document Room (PDR) reference staff at modifies any of the lender’s obligations Commission. 1–800–397–4209, at 301–415–4737, or to the Agency arising from the lender’s ACTION: Direct final rule. by email to [email protected]. For agreement, guaranteed loan or loan note the convenience of the reader, SUMMARY: The U.S. Nuclear Regulatory guarantee, nor does it waive any of the instructions about obtaining materials Agency’s rights against the lender. The Commission (NRC) is amending the reactor vessel material surveillance referenced in this document are Agency will have the right to set-off provided in the ‘‘Availability of against the lender all rights inuring to program requirements for commercial light-water power reactors. This direct Documents’’ section. the Agency as the holder of the • instrument against the Agency’s final rule revises the requirements Attention: The PDR, where you may obligation to the lender under the loan associated with the testing of specimens examine and order copies of public note guarantee. contained within surveillance capsules documents is currently closed. You may (9) Accelerated loan. When the lender and reporting the surveillance test submit your request to the PDR via has accelerated the loan and the lender results. This direct final rule also email at [email protected] or call holds all or a portion of the guaranteed clarifies the requirements for the design 1–800–397–4209 between 8:00 a.m. and loan, an estimated loss claim must be of surveillance programs and the 4:00 p.m. (EST), Monday through filed by the Lender with the Agency capsule withdrawal schedules for Friday, except Federal holidays. within 60 calendar days from the date surveillance capsules in reactor vessels FOR FURTHER INFORMATION CONTACT: the loan was accelerated. Accrued purchased after 1982. These changes Stewart Schneider, Office of Nuclear interest paid to the lender in accordance reduce regulatory burden, with no effect Material Safety and Safeguards, 301– with § 5001.450(c)(1). on public health and safety. 415–4123, email: Stewart.Schneider@ (10) Interest termination during DATES: This direct final rule is effective nrc.gov, or On Yee, Office of Nuclear bankruptcy. When a borrower files a 1, 2021, unless significant Reactor Regulation, telephone: 301– Chapter 7 liquidation plan, the lender adverse comments are received by 415–1905, email: [email protected]. Both shall immediately notify the Agency 2, 2020. If this direct final are staff of the U.S. Nuclear Regulatory and submit a liquidation plan. The rule is withdrawn as a result of such Commission, Washington, DC 20555– Agency will establish an interest comments, timely notice of the 0001. termination date based on the date withdrawal will be published in the Interest was last paid to the lender. Federal Register. Comments received SUPPLEMENTARY INFORMATION:

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Table of Contents comment submissions to remove For detailed instructions on filing ADDRESSES I. Obtaining Information and Submitting identifying or contact information. comments, please see the Comments If you are requesting or aggregating section of this document. II. Procedural Background comments from other persons for III. Background III. Background submission to the NRC, then you should IV. Discussion inform those persons not to include A. Description of a Reactor Vessel V. Section-by-Section Analysis identifying or contact information that Material Surveillance Program VI. Regulatory Flexibility Certification they do not want to be publicly VII. Regulatory Analysis The reactor vessel and its internal VIII. Backfitting and Issue Finality disclosed in their comment submission. components support and align the fuel IX. Cumulative Effects of Regulation Your request should state that the NRC assemblies that make up the reactor core X. Plain Writing does not routinely edit comment and provide a flow path to ensure XI. Environmental Impact—Categorical submissions to remove such information adequate heat removal from the fuel Exclusion before making the comment assemblies. The reactor vessel also XII. Paperwork Reduction Act Statement submissions available to the public or provides containment and a floodable XIII. Congressional Review Act entering the comment into ADAMS. volume to maintain core cooling in the XIV. Compatibility of Agreement State event of an accident causing loss of the Regulations II. Procedural Background XV. Voluntary Consensus Standards primary coolant. It is a cylindrical shell XVI. Availability of Documents Because the NRC anticipates that this with a welded hemispherical bottom action will be non-controversial, the head and a removable hemispherical I. Obtaining Information and NRC is using the ‘‘direct final rule upper head. Some vessel shells were Submitting Comments process’’ for this rule. The direct final fabricated from curved plates that were A. Obtaining Information rule will become effective on February joined by longitudinal and 1, 2021. However, if the NRC receives circumferential welds. Others were Please refer to Docket ID NRC–2017– significant adverse comments on this manufactured using forged rings and, 0151 when contacting the NRC about direct final rule by , 2020, therefore, only have circumferential the availability of information for this then the NRC will publish a document welds that join the rings. These plate action. You may obtain publicly- that withdraws this action and will and forging materials are referred to as available information related to this subsequently address the comments base metals. Maintenance of the action by any of the following methods: structural integrity of the reactor vessel • Federal Rulemaking website: Go to received in a final rule as a response to is essential in ensuring plant safety, https://www.regulations.gov and search the companion proposed rule published because there is no redundant system to for Docket ID NRC–2017–0151. in the Proposed Rule section of this • NRC’s Agencywide Documents issue of the Federal Register. Absent maintain core cooling in the event of a Access and Management System significant modifications to the vessel failure. One characteristic of reactor vessel (ADAMS): You may obtain publicly- proposed revisions requiring steels is that their material properties available documents online in the republication, the NRC will not initiate change as a function of temperature and ADAMS Public Documents collection at a second comment period on this action. neutron irradiation. The primary https://www.nrc.gov/reading-rm/ A significant adverse comment is a material property of interest for the adams.html. To begin the search, select comment where the commenter purposes of reactor vessel integrity is ‘‘Begin Web-based ADAMS Search.’’ For explains why the rule would be the fracture toughness of the reactor problems with ADAMS, please contact inappropriate, including challenges to vessel material. Extensive experimental the NRC’s PDR reference staff at 1–800– the rule’s underlying premise or work determined that Charpy impact 397–4209, at 301–415–4737, or by email approach, or would be ineffective or energy tests, which measure the amount to [email protected]. For the unacceptable without a change. A of energy required to fail a small convenience of the reader, instructions comment is adverse and significant if: material specimen, can be correlated to about obtaining materials referenced in (1) The comment opposes the rule and changes in fracture toughness of a this document are provided in the provides a reason sufficient to require a material. Thus, the Charpy impact ‘‘Availability of Documents’’ section. substantive response in a notice-and- specimens 1 from the beltline 2 materials • Attention: The PDR, where you may comment process. For example, a (i.e., base metal, weld metal, and heat- examine and order copies of public substantive response is required when: documents, is currently closed. You affected zone) became the standard to (a) The comment causes the NRC to assess the change in fracture toughness may submit your request to the PDR via reevaluate (or reconsider) its position or email at [email protected] or call in ferritic steels. conduct additional analysis; The fracture toughness of reactor 1–800–397–4209 between 8:00 a.m. and (b) The comment raises an issue vessel materials decreases with 4:00 p.m. (EST), Monday through serious enough to warrant a substantive decreasing temperature and with Friday, except Federal holidays. response to clarify or complete the increasing irradiation from the reactor. B. Submitting Comments record; or The decrease in fracture toughness due Please include Docket ID NRC–2017– (c) The comment raises a relevant to neutron irradiation is referred to as 0151 in your comment submission. issue that was not previously addressed ‘‘neutron embrittlement.’’ The fracture The NRC cautions you not to include or considered by the NRC. toughness of reactor vessel materials is identifying or contact information that (2) The comment proposes a change determined by using fracture toughness you do not want to be publicly or an addition to the rule, and it is curves in the American Society of disclosed in your comment submission. apparent that the rule would be Mechanical Engineers (ASME) Code, The NRC will post all comment ineffective or unacceptable without submissions at https:// incorporation of the change or addition. 1 A Charpy impact specimen is a bar of metal, or other material, having a V-groove notch machined www.regulations.gov as well as enter the (3) The comment causes the NRC staff across the 10 mm thickness dimension. comment submissions into ADAMS. to make a change (other than editorial) 2 A definition of the beltline or beltline region is The NRC does not routinely edit to the rule. provided in appendix G to 10 CFR part 50.

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which are indexed to the reference required, it is designed and wires) are included in each surveillance temperature for nil-ductility transition implemented at that time using the capsule and used in the determination (RTNDT), as specified in ASME Boiler existing requirements. Certain aspects of of neutron fluence for the vessel. The and Pressure Vessel Code, Section II, the program, such as the specific thermal monitors that are placed in the ‘‘Materials.’’ To account for the effects materials to be monitored, the number capsules (e.g., low-melting-point of neutron irradiation, the increase in of required surveillance capsules to be elements or eutectic alloys) are used to RTNDT is equated to the increase in the inserted in the reactor vessel, and the identify the irradiated specimen’s 30 ft-lb index temperature from tests of initial capsule withdrawal schedule maximum exposure temperature. Charpy-V notch impact specimens were designed for the original licensed B. Current Requirements Under irradiated in capsules as a part of the period of operation (i.e., 40 years). The Appendix H to 10 CFR Part 50 surveillance program. The surveillance editions of the ASTM International program includes Charpy impact (ASTM) E 185, which are incorporated Appendix H to 10 CFR part 50 specimens of the base and weld metals by reference in appendix H to 10 CFR requires light-water nuclear power for the reactor vessel in each part 50, recommend three, four, or five reactor licensees to have a reactor vessel surveillance capsule. These surveillance surveillance capsules to be included in material surveillance program to capsules are exposed to the same the design of reactor vessel material monitor changes in the fracture operating conditions as the reactor surveillance programs for the original toughness properties of the reactor vessel, and because the capsules are licensed period of operation, based on vessel materials adjacent to the reactor located closer to the reactor core than the irradiation sensitivity of the material core in the beltline region. Unless it can the reactor vessel inner diameter, the used to fabricate the reactor vessel.3 be shown that the end of design life surveillance specimens are generally Most plants have included several neutron fluence is below certain criteria, exposed to higher neutron irradiation additional surveillance capsules beyond the NRC requires licensees to levels than those experienced by the the number recommended by ASTM E implement a materials surveillance reactor vessel at any given time. 185. These capsules are referred to as program that tests irradiated material As a result of the surveillance ‘‘standby capsules.’’ The surveillance specimens that are located in capsule’s location within the reactor program for each reactor vessel provides surveillance capsules in the reactor vessel, the test specimens generally assurance that the plant’s operating vessels. The program evaluates changes reflect changes in fracture toughness limits (e.g., the pressure-temperature in material fracture toughness and due to neutron embrittlement in limits) continue to meet the provisions thereby assesses the integrity of the advance of what the reactor vessel in Appendix G of ASME Boiler and reactor vessel. For each capsule experiences and provide insight to the Pressure Vessel Code, Section XI, withdrawal, the test procedures and future condition of the reactor vessel. ‘‘Rules for Inservice Inspection of reporting requirements must meet the Therefore, the NRC instituted reactor Nuclear Power Plant Components,’’ as requirements of ASTM E 185–82, vessel material surveillance programs as required by appendix G, ‘‘Fracture ‘‘Standard Practice for Conducting a requirement of appendix H, ‘‘Reactor Toughness Requirements,’’ to 10 CFR Surveillance Tests for Light-Water Vessel Material Surveillance Program part 50. The program also provides Cooled Reactor Vessels,’’ to the extent Requirements’’ (appendix H), to part 50 assurance that the reactor vessel practicable for the configuration of the of title 10 of the Code of Federal material upper shelf energy meets the specimens in the capsule. Regulations (10 CFR), ‘‘Domestic requirements of appendix G to 10 CFR The design of the surveillance program and the withdrawal schedule Licensing of Production and Utilization part 50. These assessments are used to must meet the requirements of the Facilities,’’ so that the placement and ensure the integrity of the reactor vessel. testing of Charpy impact specimens in In addition to the Charpy impact edition of ASTM E 185 that is current capsules between the inner diameter specimens for determining the on the issue date of the ASME Code to vessel wall and the core can provide embrittlement in the reactor vessel, the which the reactor vessel was purchased. data for assessing and projecting the surveillance capsules typically contain Later editions of ASTM E 185, up to and change in fracture toughness of the neutron dosimeters, thermal monitors, including those editions through 1982, may be used. Appendix H to 10 CFR reactor vessel. and tension specimens.4 Surveillance part 50 specifically incorporates by The purpose for requiring a reactor capsules may also contain correlation reference ASTM E 185–73, ‘‘Standard vessel material surveillance program is monitor material, which is a material Recommended Practice for Surveillance to monitor changes in the fracture with composition, properties, and Tests for Nuclear Reactor Vessels;’’ toughness properties in the beltline response to radiation that have been ASTM E 185–79, ‘‘Standard Practice for region of the reactor vessel and to use well characterized. The overall accuracy Conducting Surveillance Tests for Light- this information to analyze the reactor of neutron fluence measurements is Water Cooled Nuclear Power Reactor vessel integrity. Surveillance programs dependent upon knowledge of the Vessels,’’ and ASTM E 185–82. In sum, are designed not only to examine the neutron spectrum. Therefore, a variety the surveillance program must comply current status of reactor vessel material of neutron detector materials (dosimetry properties but also to predict the with ASTM E 185, as modified by changes in these properties resulting appendix H to 10 CFR part 50. The 3 The requirements in appendix H to 10 CFR part from the cumulative effects of neutron 50 are based, in part, on the information contained number, design, and location of these irradiation. within ASTM E 185–73, ‘‘Standard Recommended surveillance capsules within the reactor The determination as to whether a Practice for Surveillance Tests for Nuclear Reactor vessel are established during the design commercial nuclear power reactor Vessels;’’ ASTM 185–79, ‘‘Standard Practice for of the program, before initial plant Conducting Surveillance Tests for Light-Water vessel requires a material surveillance Cooled Nuclear Power Reactor Vessels;’’ and ASTM operation. program under appendix H to 10 CFR E 185–82, ‘‘Standard Practice for Conducting Appendix H to 10 CFR part 50 also part 50 is made at the time of plant Surveillance Tests for Light-Water Cooled Nuclear specifies that each capsule withdrawal licensing under 10 CFR part 50 or 10 Power Reactor Vessels,’’ which are incorporated by and subsequent test results must be the reference. CFR part 52, ‘‘Licenses, Certifications, 4 Tension specimens have a standardized sample subject of a summary technical report to and Approvals for Nuclear Power cross-section, with two shoulders and a gage be submitted to the NRC within one Plants.’’ If this surveillance program is (section) in between. year of the date of capsule withdrawal,

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unless an extension is granted by the fact that an integrated surveillance requirements for the current fleet of Director, Office of Nuclear Reactor program requires coordination among operating reactors. Regulation. The NRC uses the results the multiple licensees participating in IV. Discussion from the surveillance program to assess the program.5 A significant number of licensee submittals related to pressure- test specimens have been analyzed since The purpose of this action is to reduce temperature limits under appendix G to 1983, the results of which support a the regulatory burden on reactor 10 CFR part 50 and to assess pressurized reduced need for prompt reporting of licensees and the NRC that is associated water reactor licensee’s compliance the test results. Based on this, the NRC with test specimens contained within with either § 50.61, ‘‘Fracture toughness has determined that the reporting surveillance capsules and the reporting requirements for protection against requirement in appendix H to 10 CFR of surveillance test results, with no pressurized thermal shock events,’’ or part 50 should be revised. Extending the effect on public health and safety. This § 50.61a, ‘‘Alternate fracture toughness reporting period allows for more time action also clarifies the requirements for requirements for protection against for licensee coordination and should the design of surveillance programs and pressurized thermal shock events.’’ help eliminate the need for licensees to the withdrawal schedules for reactor prepare and submit extension requests vessels purchased after 1982. The NRC C. The Need for Rulemaking and for the NRC to review such has determined that the following When appendix H to 10 CFR part 50 requests. This revision has no effect on revisions to appendix H to 10 CFR part was established as a requirement (38 FR public health and safety. 50 achieve the goal of reducing 19012; , 1973), limited regulatory burden. These revisions do information and data were available on D. Regulatory Basis To Support not establish any additional the subject of reactor vessel Rulemaking requirements for the current fleet of embrittlement. Thus, appendix H to 10 In 2019, the Commission operating reactors. CFR part 50 required the inclusion of a issued Staff Requirements 1. Heat-Affected Zone Specimens comprehensive collection of specimen Memorandum (SRM)–COMSECY–18– types representing the reactor vessel 0016, ‘‘Request Commission Approval The editions of ASTM E 185 beltline materials in each surveillance to Use the Direct Final Rule Process to incorporated by reference in appendix H capsule. Since 1973, a significant Revise the Testing and Reporting to 10 CFR part 50 specify that the number of surveillance capsules have Requirements in 10 CFR part 50, surveillance test specimens shall been withdrawn and tested. Analyses of Appendix H, Reactor Vessel Material include base metal, weld metal, and these results support reconsidering the Surveillance Program Requirements heat-affected zone materials. Heat- specimen types required for testing, and (RIN 3150–AK07),’’ approving affected zone specimens were first the required time for reporting the publication of the supporting regulatory required in reactor vessel material results from surveillance capsule basis and use of the direct final rule surveillance programs in 1966 (ASTM E testing. One outcome of this effort was process. On 3, 2019, the NRC 185–66, ‘‘Recommended Practice for that some specimen types were found to issued the regulatory basis which Surveillance Tests on Structural contribute to the characterization of provides an in-depth discussion on the Materials in Nuclear Reactors’’). Cracks reactor vessel embrittlement, while technical merits of this rulemaking (84 in heat-affected zone material had been others did not. Therefore, the NRC FR 12876).6 The regulatory basis observed to cause the failure of determined that these latter types were includes additional information on the components in non-nuclear unnecessary to meet the objectives of regulatory framework, types of reactor applications, and from early research, appendix H to 10 CFR part 50 and vessel material surveillance programs, these failures were in heat-affected zone should no longer be required. Revising regulatory topics that initiated this materials with high hardness appendix H to 10 CFR part 50 to address rulemaking effort, and options to measurements, which is associated with this situation reduces the regulatory address these topics. The regulatory low fracture toughness. burden on licensees of data collection, basis shows that there is sufficient The heat-affected zone has been with no effect on public health and justification to proceed with rulemaking shown to exhibit superior fracture safety. to amend appendix H to 10 CFR part 50 toughness compared to the base metal. In 1983, appendix H to 10 CFR part to reduce certain test specimens and In addition, test results from 50 was revised to require licensees to extend the period to submit surveillance surveillance specimens have shown submit test results to the NRC within capsule reports to the NRC. In addition, significant scatter of the heat-affected one year of the date of capsule in SRM–COMSECY–18–0016, the zone Charpy test data because of the withdrawal, unless an extension is Commission directed the staff to clarify inhomogeneous nature of the heat- granted by the Director, Office of the requirements for the design of affected zone material. This was the Nuclear Reactor Regulation (48 FR surveillance programs and the basis for eliminating the requirement for 24008; , 1983). As stated in the withdrawal schedules for reactor vessels heat-affected zone specimens after the 1983 rulemaking, the reason for the purchased after 1982. These revisions 1994 edition of ASTM E 185; thus, it is requirement was the need for timely will not establish any additional no longer prudent to require the reporting of test results and notification inclusion or testing of heat-affected zone of any problems. At that time, there was 5 Appendix H to 10 CFR part 50 permits the use materials. a limited amount of data from irradiated of an integrated surveillance program (ISP) as an For these reasons, the NRC is revising materials from which to estimate alternative to a plant-specific surveillance program. appendix H to 10 CFR part 50 to make embrittlement trends of reactor vessels In an ISP, the representative materials chosen for optional the requirement to include or surveillance of a reactor vessel are irradiated in one at nuclear power plants, making it or more other reactor vessels that have similar test heat-affected zone specimens as part important to receive timely reporting of design and operating features. The data obtained of the reactor vessel material test results. from these test specimens may then be used in the surveillance program. For existing Licensees that participate in an analysis of other plants participating in the capsules that are currently in the reactor program. integrated surveillance program have 6 A subsequent notification was published on vessel, licenses can continue their found it challenging to meet this one- , 2019 (84 FR 14845), to correct the ADAMS practice to test the heat-affected zone year requirement. This is related to the accession number for the regulatory basis. specimens. For new and reconstituted

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capsules 7 that may be inserted into the capsules. For existing capsules that are embrittlement of reactor vessel steels, reactor vessel in the future, licensees are currently in the reactor vessel, licensees with lower embrittlement measured at no longer required to have heat-affected can continue their practice of testing the higher irradiation temperatures within a zone specimens in the capsules but tension specimens in accordance with range close to the standard operating could choose to continue this practice. ASTM E 185. For new and reconstituted temperature of 288 degrees Celsius (550 This revision has no effect on public capsules that may be inserted into the degrees Fahrenheit). Therefore, health and safety. reactor vessel in the future, licensees knowledge of the irradiation could choose to continue this practice. temperature history of surveillance 2. Tension Specimens This revision has no effect on public capsules is important to ensure that the The editions of ASTM E 185 currently health and safety. surveillance data are properly incorporated by reference in appendix H interpreted and do not portray a non- 3. Correlation Monitor Material to 10 CFR part 50 specify the following conservative estimate of the reactor with respect to tensile testing: Correlation monitor material is a well vessel neutron embrittlement. (1) For unirradiated material, tension characterized reactor vessel material Temperature monitors are targeted to specimens shall be tested for both the that has been included in many melt at specific temperatures, normally base and weld material at specified surveillance capsules. Correlation somewhat higher than the planned temperatures. monitor material is selected so that it operating temperature, to identify the (2) For irradiated material, tension has a comparable composition and highest temperature seen by the specimens shall be included for both the processing history to the reactor vessel surveillance capsule. The monitors base and weld material and tested at material. The purpose of a correlation provide an indication of whether the specified temperatures. monitor material in a surveillance melt temperature was reached but they (3) Tensile testing shall be conducted capsule is to provide reference data for do not provide a time-based exposure in accordance with ASTM Method E 8, comparison to the established trends for history of the monitor. ‘‘Methods of Tension Testing of Metallic the correlation monitor material. Several factors can complicate the Materials,’’ and ASTM E 21, The editions of ASTM E 185 currently interpretation of the information from ‘‘Recommended Practice for Elevated incorporated by reference in appendix H temperature monitors. The first Temperature Tension Tests of Metallic to 10 CFR part 50 specify that it is complication arises when the Materials.’’ optional to include correlation monitor surveillance capsule experiences a short The variation of tensile properties material in surveillance capsules. These duration thermal transient that increases (e.g., yield strength, tensile strength, and editions of ASTM E 185 do not the coolant inlet temperature. This elongation) with test temperatures is explicitly indicate whether correlation could result in a positive indication established by testing tension specimens monitor material shall be tested if it was from the temperature monitors, which is over a range of temperatures. Performing optionally included in a surveillance insignificant to the overall exposure tensile tests before and after irradiation capsule. Therefore, it is ambiguous conditions of the surveillance capsule. permits quantification of the hardening whether correlation monitor material A second complication is caused by effect due to irradiation using the testing is required even though it is possible interpretation issues, where change in yield strength. Tensile data optional to include this material in apparent melting of the temperature provide an indication of the radiation- surveillance capsules. In practice, the monitors is caused by long-term induced strength property changes in testing of correlation monitor material exposure of the monitor to temperatures the reactor vessel material and serve as has demonstrated variability in the near, but below, its melting point. a consistency check relative to Charpy measured material properties of the For these reasons, the NRC is revising data. correlation monitor material, which has appendix H to 10 CFR part 50 to make Past experience and test results have limited the practical use of the data. optional the requirement to include or demonstrated that the differences in the For these reasons, the NRC is revising evaluate temperature monitors as part of test temperatures specified in ASTM E appendix H to 10 CFR part 50 to clarify the reactor vessel material surveillance 185 can be small, which could yield that testing of correlation monitor program. For existing capsules that are small differences in tensile properties material is optional when included in currently in the reactor vessel, licensees and redundant tensile information. existing, new, and reconstituted can continue their practice of evaluating Eliminating one test temperature and surveillance capsules. This revision has the temperature monitors. For new and testing at room temperature and service no effect on public health and safety. reconstituted capsules that may be inserted into the reactor vessel in the temperature at all irradiation levels, 4. Thermal Monitors allows for the comparison of the change future, licensees are no longer required in strength properties due to irradiation ASTM E 185–82 specifies that the to include temperature monitors in the and temperature. surveillance capsules shall include one capsules but could choose to continue For these reasons, the NRC is revising set of temperature monitors (also known this practice. As an alternative to these appendix H to 10 CFR part 50 to require as ‘‘thermal monitors’’) that are located temperature monitors, an estimate of the the inclusion or testing of only one within the capsule where the specimen average capsule temperature during full tension specimen at room temperature temperature is predicted to be the power operation for each reactor fuel and one tension specimen at service maximum, and additional sets of cycle will provide the irradiation temperature, for all materials and temperature monitors may be placed at temperature history of the surveillance irradiation levels as part of the reactor other locations to characterize the capsule. This revision has no effect on vessel material surveillance program. temperature profile. The standard public health and safety. specifies reporting of the temperature This reduces the number of tension 5. Surveillance Test Results Reporting specimens required in new and monitor results and an estimate of the reconstituted surveillance capsules and maximum capsule exposure Appendix H to 10 CFR part 50 for testing in existing surveillance temperature. currently requires that within one year Irradiation temperature is one of the of the date of the surveillance capsule 7 A reconstituted capsule contains specimens parameters that is closely correlated withdrawal, a summary technical report from previously tested capsules. with the effects of neutron be submitted to the NRC that contains

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the data required by ASTM E 185, and misinterpret the regulation as requiring Appendix H to Part 50—Reactor Vessel the results of all fracture toughness tests the use of an edition of ASTM E 185 Material Surveillance Program conducted on the beltline materials in that is not incorporated by reference in Requirements the irradiated and unirradiated appendix H to 10 CFR part 50. conditions, unless an extension is Section III. Surveillance Program Therefore, the NRC is revising appendix Criteria granted by the Director, Office of H to 10 CFR part 50 to clarify that for Nuclear Reactor Regulation. reactor vessels purchased after 1982, the This direct final rule revises This one-year requirement in design of the surveillance program and paragraph III.B.1 to clarify the design of appendix H to 10 CFR part 50 became the withdrawal schedule must meet the surveillance programs and the capsule effective on , 1983 (48 FR 24008), requirements of ASTM E 185–82 (i.e., withdrawal schedules for reactor vessels with the primary purpose of timely purchased after 1982 and to include reporting of test results and notification the latest edition of ASTM E 185 that is information regarding the use of of any problems determined from incorporated by reference in appendix H optional provisions. This direct final surveillance tests. This was important to 10 CFR part 50). rule also adds new paragraph III.B.4 that because there was a limited amount of License Renewal and Subsequent makes optional certain aspects of ASTM available data from irradiated materials License Renewal E 185. from which to estimate embrittlement trends. An extensive amount of Surveillance programs that include Section IV. Report of Test Results embrittlement data has been collected the withdrawal schedule required by and analyzed since this time, the results appendix H to 10 CFR part 50 were This direct final rule revises the of which support the reduced need for originally established and designed for timeframe for the submission of a prompt reporting of the test results. the initial 40-year operating license of a summary technical report from 1 year to Licensees participating in an nuclear power plant. The objective of 18 months. integrated surveillance program have this program during extended plant found it challenging to meet the one- VI. Regulatory Flexibility Certification operations 8 remains the same as it was year requirement to submit a report during the initial 40-year operating Under the Regulatory Flexibility Act following each capsule withdrawal. In license, which is to continue monitoring (5 U.S.C. 605(b)), the NRC certifies that an integrated surveillance program, the this direct final rule does not have a representative materials chosen for a changes in fracture toughness of the reactor vessel materials to ensure the significant economic impact on a reactor are irradiated in one or more substantial number of small entities. other reactors that have similar design integrity of the reactor vessel. This direct final rule does not revise This direct final rule affects only the and operating features. The data licensing and operation of nuclear appendix H to 10 CFR part 50 with obtained from these test specimens may power plants. The companies that own respect to surveillance capsule then be used in the analysis of other these plants do not fall within the scope plants participating in the program. withdrawal schedules during extended of the definition of ‘‘small entities’’ set Implementation of the integrated plant operation. forth in the Regulatory Flexibility Act or surveillance program requires New Reactors the size standards established by the significant coordination among the NRC (§ 2.810). multiple licensees participating in the New light-water nuclear power program. Historically, these licensees reactor designs are substantially similar VII. Regulatory Analysis have requested a 6-month extension to to operating reactors with regard to the The NRC has prepared a regulatory this reporting requirement and, to date, relevant considerations for establishing the Director of the NRC Office of analysis for this direct final rule. The adequate surveillance programs under Nuclear Reactor Regulation, has granted analysis examines the costs and benefits appendix H to 10 CFR part 50. These them. Furthermore, as surveillance of the alternatives considered by the capsules remain in the reactor vessel to similarities include proposed materials, NRC. Based on the analysis, the NRC support operation through 60 years and fabrication methods, and operating concludes that this action is cost 80 years, longer periods of radioactive environments. The proposed beneficial and reduces the regulatory decay may be needed before the withdrawal schedules from ASTM E 185 costs for reactor licensees and the NRC capsules can be shipped to testing are constructed to provide early for an issue that is not significant to facilities. Licensees may find it evidence of material behavior which is safety. This issue is not significant to burdensome to meet the one-year of particular interest for a new or novel safety because this direct final rule reporting requirement under these design with little or no operating reduces the testing of some specimens circumstances. experience. Consequently, the NRC is and eliminates the testing of other For these reasons, the NRC is revising not revising appendix H to 10 CFR part specimens that were found not to appendix H to 10 CFR part 50 to 50 to address new light-water nuclear provide meaningful information to increase the time given to licensees to power reactor designs separately from assess the integrity of the reactor vessel. submit a summary technical report of existing reactors. Also, extending by 6 months the period each capsule withdrawal and the test for submitting the report of test results results from 1 year to 18 months. This V. Section-by-Section Analysis to the NRC is not significant to safety. This is because the increase in neutron revision has no effect on public health The following paragraphs describe the and safety. fluence over 6 months is very small, and specific changes being made by this therefore the projected increase in 6. Design of the Surveillance Program direct final rule. embrittlement for the 6-month period Appendix H to 10 CFR part 50 is also would also be very small. This small being revised to clarify the edition of 8 The period beyond the original license of a impact, in conjunction with the margin ASTM E 185 that is required for a nuclear power plant (i.e., during license renewal to of safety that is inherent in the pressure- reactor vessel purchased after 1982. operate for 60 years and potentially during temperature limit curves, minimizes any Currently, there is the potential to subsequent license renewal to operate for 80 years). impact due to the 6-month increase.

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VIII. Backfitting and Issue Finality obtained at this meeting was used in recordkeeping and reporting The NRC’s backfitting provisions for developing the regulatory basis and requirements are categorically excluded holders of construction permits, and regulatory analysis. A second public under 10 CFR 51.22(c)(3)(ii) and (iii). applicants and holders of operating meeting was held on , 2019, to The NRC has also determined that this licenses and combined licenses, appear provide information on the status and action would involve no significant in § 50.109, ‘‘Backfitting’’ (the Backfit scope of this direct final rule, and to change in the types or amounts of any Rule). Issue finality provisions, which discuss implementation and CER. effluents that may be released offsite; no are analogous to the backfitting Summaries of both public meetings are significant increase in individual or available in ADAMS, as provided in the provisions in § 50.109, appear in cumulative occupational radiation ‘‘Availability of Documents’’ section of § 52.63, ‘‘Finality of Standard Design exposure; and no significant increase in this document. Certifications;’’ § 52.83, ‘‘Finality of the potential for or consequences from Referenced NRC Approvals; Partial X. Plain Writing radiological accidents. In addition, the NRC has determined that there are no Initial Decision on Site Suitability;’’ The Plain Writing Act of 2010 (Pub. § 52.98, ‘‘Finality of Combined Licenses; significant impacts to biota, water L. 111–274) requires Federal agencies to resources, historic properties, cultural Information Requests;’’ § 52.145, write documents in a clear, concise, and ‘‘Finality of Standard Design Approvals, resources, or socioeconomic conditions well-organized manner. The NRC has in the region. As such, there are no Information Request;’’ and § 52.171, written this document to be consistent ‘‘Finality of Manufacturing Licenses; extraordinary circumstances that would with the Plain Writing Act as well as the preclude reliance on this categorical Information Requests.’’ Presidential Memorandum, ‘‘Plain This direct final rule: (1) Provides exemption. Therefore, pursuant to 10 Language in Government Writing,’’ CFR 51.22(b), no environmental impact licensees with a nonmandatory published 10, 1998 (63 FR 31883). relaxation from the current 1 year statement or environmental assessment following a capsule withdrawal to 18 XI. Environmental Impact—Categorical need be prepared in connection with months to submit surveillance capsule Exclusion revising the reporting requirement test results, and (2) reduces testing The Commission has determined under appendix H to 10 CFR part 50. requirements by amending the NRC’s under the National Environmental XII. Paperwork Reduction Act regulations in appendix H to 10 CFR Policy Act of 1969, as amended, and the part 50. Because these changes are Commission’s regulations in 10 CFR The burden to the public for the nonmandatory, licensees have the part 51, subpart A, that the direct final information collection is estimated to be option to comply with the revised rule will not have a significant effect on reduced by 78 hours per response, requirements for testing certain the quality of the human environment including the time for reviewing surveillance capsule specimens or for and, therefore, an environmental impact instructions, searching existing data extending the allowable period for statement is not required. The principal sources, gathering and maintaining the submitting surveillance test results to effect of this direct final rule is to data needed, and completing and the NRC (i.e., licensees can continue to amend the reactor vessel materials reviewing the information collection. submit surveillance capsule test results surveillance program requirements for Further information about information within one year of the date of capsule commercial light-water power reactors. collection requirements associated with withdrawal). Therefore, this direct final Specifically, it amends the requirements this direct final rule can be found in the rule does not constitute backfitting or associated with the testing of specimens companion proposed rule published raise issue finality concerns. contained within surveillance capsules elsewhere in this issue of the Federal and reporting the surveillance test Register. IX. Cumulative Effects of Regulation results. This direct final rule is being issued Cumulative effects of regulation (CER) The amendments to appendix H to 10 prior to approval by the Office of consists of the challenges licensees may CFR part 50 that revise the surveillance Management and Budget (OMB) of these face in addressing the implementation requirements for testing specimens add information collection requirements, of new regulatory positions, programs, optional provisions that would need to which were submitted under OMB and requirements (e.g., rulemaking, be adopted by individual licensees. In control number 3150–0011. When OMB guidance, generic letters, backfits, order to adopt these optional provisions, notifies us of its decision, we will inspections). The CER may manifest in licensees would need to either submit a publish a document in the Federal several ways, including the total burden license amendment or determine Register providing notice of the imposed on licensees by the NRC from whether the optional provisions can be effective date of the information simultaneous or consecutive regulatory implemented under 10 CFR 50.59, collections or, if approval is denied, actions that can adversely affect the ‘‘Changes, tests and experiments.’’ providing notice of what action we plan licensee’s capability to implement those When the 10 CFR 50.59 regulation was to take. requirements, while continuing to promulgated in 1999, the Commission Send comments on any aspect of operate or construct its facility in a safe concluded that there would be no these information collections, including and secure manner. significant impact on the environment suggestions for reducing the burden, to The goals of the NRC’s CER effort for the types of changes to a nuclear the Information Services Branch (T6– were met throughout the development power plant’s licensing basis that a A10M), U.S. Nuclear Regulatory of this action. The NRC has engaged licensee could make under this Commission, Washington, DC 20555– external stakeholders at public meetings provision without NRC review. If a 0001, or by email to held during the development of the license amendment is required to be INFOCOLLECTS.RESOURCE@ regulatory basis and this direct final submitted, the environmental impacts of NRC.GOV; and to OMB Office of rule. A public meeting was held on June that future license amendment would be Information and Regulatory Affairs 1, 2017, to provide an opportunity for evaluated by the NRC staff as part of the (3150–0011), Attn: Desk Officer for the the exchange of information on the review of the license amendment Nuclear Regulatory Commission, 725 scope and related costs and benefits request. The amendments to appendix H 17th Street NW, Washington, DC 20503; associated with this action. Feedback to 10 CFR part 50 that revise the email: [email protected].

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Public Protection Notification not adopt program elements reserved to provide meaningful information to The NRC may not conduct or sponsor, the NRC, it may wish to inform its assess the integrity of the reactor vessel. and a person is not required to respond licensees of certain requirements via a It also extends by 6 months the period to, a collection of information unless the mechanism that is consistent with a for licensees to submit the report of test document requesting or requiring the particular State’s administrative results to the NRC. The increase in collection displays a currently valid procedure laws, but does not confer neutron fluence over 6 months is very OMB control number. regulatory authority on the State. small, and therefore the projected increase in embrittlement over this XV. Voluntary Consensus Standards XIII. Congressional Review Act period would also be very small. This This direct final rule is a rule as The National Technology Transfer small impact, in conjunction with the defined in the Congressional Review and Advancement Act of 1995 (Pub. L. margin of safety which is inherent in the Act (5 U.S.C. 801–808). However, the 104–113) requires that Federal agencies pressure-temperature limit curves, Office of Management and Budget has use technical standards that are minimizes any impact due to the 6- not found it to be a major rule as developed or adopted by voluntary month increase. This action does not defined in the Congressional Review consensus standards bodies unless constitute the establishment of new Act. using such a standard is inconsistent conditions on the ASTM standards that with applicable law or otherwise are currently incorporated by reference XIV. Compatibility of Agreement State impractical. In this direct final rule, the in appendix H to 10 CFR part 50 nor a Regulations NRC is amending the reactor vessel standard that contains generally Under the ‘‘Policy Statement on materials surveillance program applicable requirements. This action Adequacy and Compatibility of requirements to reduce the regulatory maintains the use of the ASTM Agreement State Programs,’’ approved burden for an issue that is not standards that are currently by the Commission on , 1997, significant to safety associated with the incorporated by reference in appendix H and published in the Federal Register testing of surveillance capsule to 10 CFR part 50 but makes optional (62 FR 46517; , 1997), this specimens and reporting the certain aspects of the ASTM standards rule is classified as compatibility surveillance test results. It also clarifies that have been determined not to be ‘‘NRC.’’ Compatibility is not required for the requirements for the design of necessary for the safe operation of Category ‘‘NRC’’ regulations. The NRC surveillance programs and the nuclear power plants. program elements in this category are withdrawal schedules for reactor vessels XVI. Availability of Documents those that relate directly to areas of purchased after 1982. Specifically, this regulation reserved to the NRC by the direct final rule allows licensees to The documents identified in the Atomic Energy Act of 1954, as amended, reduce the testing of some specimens following table are available to or the provisions of 10 CFR chapter I, and eliminates the testing of other interested persons through one or more and although an Agreement State may specimens that were found not to of the following methods, as indicated.

Adams Accession No./Web Link/ Document Federal RegisterCitation

ASME Boiler and Pressure Vessel Code, Section II, ‘‘Materials’’ ...... https://www.asme.org. ASTM E 185–73, ‘‘Standard Recommended Practice for Surveillance Tests for Nuclear Reactor Vessels’’ ...... https://www.astm.org. ASTM 185–79, ‘‘Standard Practice for Conducting Surveillance Tests for Light-Water Cooled Nuclear Power https://www.astm.org. Reactor Vessels’’. ASTM E 185–82, ‘‘Standard Practice for Conducting Surveillance Tests for Light–Water Cooled Nuclear https://www.astm.org. Power Reactor Vessels’’. ASME Boiler and Pressure Vessel Code, Section XI, Appendix G, ‘‘Rules for Inservice Inspection of Nuclear https://www.asme.org. Power Plant Components’’. Federal Register notification—‘‘Part 50 Final Rule–Licensing of Production and Utilization Facilities; Fracture 38 FR 19012. Toughness and Surveillance Program Requirements,’’ July 17, 1973. Federal Register notification—‘‘10 CFR Part 50 Final Rule, Fracture Toughness Requirements for Light- 48 FR 24008. Water Nuclear Power Reactors,’’ May 27, 1983. Rulemaking for Appendix H to 10 CFR Part 50, ‘‘Reactor Vessel Material Surveillance Program Require- ML19038A477. ments—Regulatory Basis,’’ April 2019. Federal Register notification—‘‘10 CFR Part 50, Reactor Vessel Material Surveillance Program: Regulatory 84 FR 12876. Basis; Availability,’’ , 2019. Federal Register notification—‘‘10 CFR Part 50, Reactor Vessel Material Surveillance Program: Regulatory 84 FR 14845. Basis; Availability; Correction,’’ April 12, 2019. ASTM E 185–66, ‘‘Recommended Practice for Surveillance Tests on Structural Materials in Nuclear Reac- https://www.astm.org. tors‘‘. ASTM Method E 8, ‘‘Methods of Tension Testing of Metallic Materials,’’ ...... https://www.astm.org. ASTM E21 ‘‘Recommended Practice for Elevated Temperature Tension Tests of Metallic Materials.’’ ...... https://www.astm.org. Summary of April 30, 2019, Public Meeting to Discuss the Status of the Appendix H, Reactor Vessel Material ML19127A050. Surveillance Program Requirements Rulemaking. Summary of , 2017, Public Meeting to Discuss the Scope and Related Costs and Benefits Associated ML17173A081. with the ‘‘Reactor Vessel Materials Surveillance Program Requirements’’ Proposed Rulemaking. Staff Requirements Memorandum (SRM)–COMSECY–18–0016, ‘‘Request Commission Approval to Use the ML19009A517. Direct Final Rule Process to Revise the Testing and Reporting Requirements in 10 CFR Part 50, Appendix H, Reactor Vessel Material Surveillance Program Requirements (RIN 3150–AK07)’’. Regulatory Analysis for the Direct Final Rule: Appendix H to 10 CFR Part 50—Reactor Vessel Material Sur- ML20246G422. veillance Program Requirements, September 2020.

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List of Subjects in 10 CFR Part 50 the specimens in the capsule. If any of the ACTION: Final rule and final rule; optional provisions in paragraphs III.B.4(a) correction. Administrative practice and through (d) of this section are implemented procedure, Antitrust, Backfitting, in lieu of ASTM E 185, the number of SUMMARY: The NCUA Board (Board) is Classified information, Criminal specimens included or tested in the issuing a final rule to make technical penalties, Education, Fire prevention, surveillance program shall be adjusted as amendments to various provisions of Fire protection, Incorporation by specified in paragraphs III.B.4(a) through (d) the NCUA’s regulations. These reference, Intergovernmental relations, of this section. amendments correct minor technical Nuclear power plants and reactors, * * * * * problems and improve clarity. Penalties, Radiation protection, Reactor 4. Optional provisions. As used in this DATES: The final rule is effective on siting criteria, Reporting and section, references to ASTM E 185 include the edition of ASTM E 185 that is current on October 2, 2020, except for the recordkeeping requirements, corrections to the final rule amending Whistleblowing. the issue date of the ASME Code to which the reactor vessel was purchased through the 12 CFR part 702, published at 80 FR For the reasons set forth in the 1982 edition. 66626, which was delayed on November preamble, and under the authority of the (a) First Provision: Heat-Affected Zone 6, 2018 (83 FR 55467) and , Atomic Energy Act of 1954, as amended; Specimens—The inclusion or testing of weld 2019 (84 FR 68781), which are effective the Energy Reorganization Act of 1974, heat-affected zone Charpy impact specimens on , 2022. as amended; and 5 U.S.C. 552 and 553, within the surveillance program as specified FOR FURTHER INFORMATION CONTACT: the NRC is adopting the following in ASTM E 185 is optional. Justin Anderson, Senior Staff Attorney; amendments to 10 CFR part 50: (b) Second Provision: Tension Specimens—If this provision is Gira Bose, Staff Attorney, Division of Regulations and Legislation, Office of PART 50—DOMESTIC LICENSING OF implemented, the minimum number of General Counsel, at 1775 Duke Street, PRODUCTION AND UTILIZATION tension specimens to be included and tested Alexandria, VA 22314 or telephone: FACILITIES in the surveillance program shall be as specified in paragraphs III.B.4(b)(i) and (ii) of (703) 518–6540. ■ 1. The authority citation for part 50 this section. SUPPLEMENTARY INFORMATION: (i) Unirradiated Tension Specimens—Two continues to read as follows: tension specimens from each base and weld I. Background Authority: Atomic Energy Act of 1954, material required by ASTM E 185 shall be The Board periodically issues a secs. 11, 101, 102, 103, 104, 105, 108, 122, tested, with one specimen tested at room technical amendments rule correcting 147, 149, 161, 181, 182, 183, 184, 185, 186, temperature and the other specimen tested at 187, 189, 223, 234 (42 U.S.C. 2014, 2131, the service temperature; and minor typographical errors, inaccurate 2132, 2133, 2134, 2135, 2138, 2152, 2167, (ii) Irradiated Tension Specimens—Two legal citations, or superfluous or 2169, 2201, 2231, 2232, 2233, 2234, 2235, tension specimens from each base and weld outdated regulatory provisions 2236, 2237, 2239, 2273, 2282); Energy material required by ASTM E 185 shall be throughout the NCUA’s regulations. Reorganization Act of 1974, secs. 201, 202, included in each surveillance capsule and Because these changes are technical in 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); tested, with one specimen tested at room nature, and do not affect federally Nuclear Waste Policy Act of 1982, sec. 306 temperature and the other specimen tested at insured credit unions in a substantive (42 U.S.C. 10226); National Environmental the service temperature. manner, the Board issues these Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. (c) Third Provision: Correlation Monitor technical amendments rules as final 3504 note; Sec. 109, Pub. L. 96–295, 94 Stat. Materials—The testing of correlation monitor rules without notice and comment 783. material specimens within the surveillance program as specified in ASTM E 185 is typically required by the Administrative ■ 2. In appendix H to part 50: 1 optional. Procedure Act (APA). Accordingly, the ■ a. Revise paragraph III.B.1; Board is issuing this final rule to ■ (d) Fourth Provision: Thermal Monitor— b. Add paragraph III.B.4; and The inclusion or examination of thermal address those matters. ■ c. In paragraph IV.A, remove the monitors within the surveillance program as II. Legal Authority phrase ‘‘one year’’ and add in its place specified in ASTM E 185 is optional. the phrase ‘‘eighteen months’’. * * * * * The Board has the legal authority to The revision and addition read as issue this final rule pursuant to its follows: Dated at Rockville, Maryland, this 24th day plenary rulemaking authority under the of September, 2020. 2 Appendix H to Part 50—Reactor Vessel Federal Credit Union Act (FCU Act) For the Nuclear Regulatory Commission. and its specific rulemaking authority Material Surveillance Program Annette Vietti-Cook, Requirements under the various acts the Board Secretary for the Commission. administers. * * * * * [FR Doc. 2020–21505 Filed 10–1–20; 8:45 am] III. * * * III. Section-by-Section Analysis BILLING CODE 7590–01–P B. * * * General Wording, Style, and Cross- 1. The design of the surveillance program Reference Changes and the withdrawal schedule must meet the The final rule makes general wording, requirements of the edition of the ASTM E NATIONAL CREDIT UNION 185 that is current on the issue date of the style, and cross-reference changes ADMINISTRATION ASME code to which the reactor vessel was throughout the NCUA’s regulations. For purchased; for reactor vessels purchased after example, the final rule corrects various 1982, the design of the surveillance program 12 CFR Parts 700, 701, 702, 704, 705, 707, 708a, 708b, 709, 717, 725, 740, 741, typographical errors. Technical and the withdrawal schedule must meet the amendments of this nature will apply requirements of ASTM E 185–82. For reactor 747, 748, and 750 vessels purchased in or before 1982, later throughout the NCUA’s regulations. editions of ASTM E 185 may be used, but RIN 3133–AF22 Therefore, the preamble does not including only those editions through 1982. address these types of stylistic changes For each capsule withdrawal, the test Technical Amendments in the section-by-section analysis below. procedures and reporting requirements must meet the requirements of the ASTM E 185 to AGENCY: National Credit Union 1 5 U.S.C. 553(b)(A), (B). the extent practicable for the configuration of Administration (NCUA). 2 12 U.S.C. 1766, 1789.

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Parts 700, 701, 702, 704, 705, 707, 708a, ‘‘FactFinder’’ reference with ‘‘American language to this appendix to avoid 708b, 709, 717, 725, 740, 741, 747, 748, Community Survey’’ and provides a confusion for those referring to the and 750 more general link to the Census current version of the Accounting The final rule amends one of the Bureau’s website. This change is not Manual. definitions listed in § 700.2 of the intended to alter the reliance on Census In addition, the final rule redesignates NCUA’s regulations that was Bureau data for these statistics. several paragraphs in appendix C to this part to correct duplicate paragraph erroneously changed. The definitions in Appendix B to Part 701—Chartering numbering that resulted from prior part 700 apply throughout chapter VII of and Field of Membership Manual amendments. This change does not title 12 of the Code of Federal The final rule amends certain Regulations ‘‘unless the context affect or add to the substance of these 3 provisions to update the NCUA office provisions. The final rule will also indicates otherwise.’’ A ‘‘Noninsured responsible for a certain activity. For credit union’’ is currently defined by correct minor wording or typographical instance, the Office of Credit Union errors. regulation as ‘‘a credit union chartered Resources and Expansion (CURE) has under the laws of any State, the District replaced the Regional Office as the Part 708a—Bank Conversions and of Columbia, the several territories and responsible office at Chapter 1, Section Mergers possessions of the United States, the III. The final rule also updates Section 708a.304 addresses the notice Panama Canal Zone, or the references to the Regional Offices to that a credit union must file with the Commonwealth of Puerto Rico, whose reflect the agency’s realignment that was NCUA within 30 days of its board member accounts are not insured by finalized in 2019, as well as an update adopting a proposal to merge. This NCUA.’’ This term mirrors the Federal to the name of one of the credit union provision refers to an asset threshold set Credit Union Act definition.4 A final trade associations noted in the by the Federal Trade Commission (FTC) technical amendments rule issued in Chartering Manual. under the Hart-Scott Rodino Act that 2018 amended several references to triggers a premerger notification to the ‘‘Non-federally insured credit unions’’ Part 702—Capital Adequacy FTC. The threshold amount listed in the changing them to ‘‘Noninsured credit In addition to typographical current regulation is outdated. Because unions.’’ Although this change corrections, the final rule includes the FTC will continue to update this conformed the regulatory definition to corrections to the amendatory threshold, removing the specific dollar the statutory definition, it also instructions from the 2015 final rule on amount from this regulation will help to inadvertently created internal 5 risk-based capital to ensure that cross- avoid confusion or alternatively, the inconsistencies in the regulations and references to other provisions that the need for the NCUA to update its created unintended confusion and Board has since been amended will be regulation each time the FTC updates consequences. The Board has correctly reflected in this part when the the threshold. Credit unions should determined that the erroneous technical 2015 final rule goes into effect, as it is refer to the FTC’s announcements of the amendment issued in 2018 needs to be 6 scheduled to do on January 1, 2022. threshold amounts on that agency’s reversed to correct the inadvertent These corrections do not make any website and in the Federal Register. regulatory inconsistencies. This will substantive change to the 2015 final restore clarity that the term ‘‘Non- rule. Part 747—Administrative Actions, federally insured credit unions,’’ Adjudicative Hearings, Rules of Practice consistent with the Federal Credit Part 704—Corporate Credit Union and Procedure, and Investigations Union Act, includes credit unions Throughout part 704, corporate credit The final rule makes two notable whose member accounts are insured by unions are frequently referred to as clarifications and updates to this part. In agencies or entities other than the ‘‘corporates.’’ The final rule amends § 747.0, which sets forth the scope of NCUA, such as state or private share several sections in this part to replace this part, the final rule adds a defined insurers, as well as credit unions whose ‘‘corporate’’ or ‘‘corporates’’ with term for the Uniform Rules when that member accounts are not insured by any ‘‘corporate credit union’’ or ‘‘corporate subject is first discussed in order to party. Accordingly, the final rule makes credit unions’’ to avoid confusion and to provide clarity. In § 747.207, which this change in § 700.2 and in other parts be more precise. addresses notices of termination of where the term ‘‘Noninsured credit In addition, a reference to ‘‘notational insured status, the final rule updates a union’’ currently appears—parts 704, principal balance’’ has been corrected to reference to the standard maximum 705, 708b, and 740. ‘‘notional principal balance.’’ share insurance amount from $100,000 Section 701.34 Designation of Low Part 707—Truth in Savings to $250,000 to reflect the statutory Income Status; Acceptance of change that Congress enacted in 2010.7 This final rule makes a notable change Secondary Capital Accounts by Low- relating to the model clauses and forms IV. Regulatory Procedures Income Designated Credit Unions in appendix B to this part, which Administrative Procedure Act Section 701.34(a)(6) provides the addresses Truth in Savings. Specifically, definition of ‘‘median family income’’ appendix B refers several times to a Generally, the APA requires a Federal and ‘‘total median earnings for chart of accounts in a specific section of agency to provide the public with notice individuals’’ by referring to data from the NCUA’s Accounting Manual for and an opportunity to comment on the Census Bureau. The current Federal Credit Unions. This publication agency rulemakings.8 The APA, definition points to the Census Bureau’s no longer contains this chart of however, creates an exception in cases American FactFinder site with a specific accounts, but this chart served as the where an agency for good cause hyperlink. The Census Bureau no longer model for the sample forms. determines ‘‘that notice and public houses this data at that specific site. Accordingly, the final rule adds a procedure thereon are impracticable, Accordingly, this final rule replaces the statement to this effect in the prefatory unnecessary, or contrary to the public

3 12 CFR 700.2. 5 80 FR 66626 (Oct. 29. 2015). 7 Public Law 111–203, sec. 335(b). 4 12 U.S.C. 1752(7). 6 See 84 FR 68781 (Dec. 17, 2019). 8 5 U.S.C. 553(b).

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interest.’’ 9 Because all of the changes in burden may take the form of a reporting status discrimination, Mortgages, this final rule involve only minor, or recordkeeping requirement, both Religious discrimination, Reporting and technical amendments to the NCUA’s referred to as information collections. recordkeeping requirements, Sex existing regulations, the Board has As the final rule makes only minor, discrimination, Signs and symbols, determined that notice and comment technical amendments to the NCUA’s Surety bonds. would be unnecessary and contrary to existing regulations, the NCUA has 12 CFR Part 702 the public interest. determined it does not increase Furthermore, the APA generally paperwork requirements under the PRA. Credit unions, Reporting and provides that a final rule may not recordkeeping requirements. become effective until at least 30 days Small Business Regulatory Enforcement after its publication in the Federal Fairness Act 12 CFR Part 704 Register unless the agency determines The Small Business Regulatory Credit unions, Reporting and that good cause exists to dispense with Enforcement Fairness Act of 1996 recordkeeping requirements, Surety this requirement.10 As noted above, (SBREFA) provides generally for bonds. given that the rule does not impose new congressional review of agency rules.14 12 CFR Part 705 requirements on federally insured credit A reporting requirement is triggered in unions and only involves minor, instances where the NCUA issues a Community programs, Credit unions, technical amendments to existing ‘‘final rule’’ as defined by statute.15 As Grants, Loans, Low income, Revolving regulations, the Board finds sufficient required by SBREFA, the NCUA will fund. good cause exists to dispense with the submit this rule to the Office of 12 CFR Part 707 30-day effective date requirement. The Management and Budget for it to rule will, therefore, be effective determine if the final rule is a ‘‘major Advertising, Credit unions, Reporting immediately upon publication. rule’’ for purposes of SBREFA. The and recordkeeping requirements, Truth Regulatory Flexibility Act NCUA does not believe the rule is in lending. major. The Regulatory Flexibility Act 12 CFR Part 708a requires the NCUA to prepare an Assessment of Federal Regulations and Credit unions, Reporting and analysis of any significant economic Policies on Families recordkeeping requirements. impact a regulation may have on a The NCUA has determined that this 12 CFR Part 708b substantial number of small entities rule will not affect family well-being (primarily those under $100 million in within the meaning of section 654 of the Bank deposit insurance, Credit assets).11 As discussed previously, Treasury and General Government unions, Reporting and recordkeeping consistent with the APA,12 the Board Appropriations Act.16 requirements. has determined for good cause that general notice and opportunity for Executive Order 13132 12 CFR Part 709 public comment is unnecessary, and Executive Order 13132 encourages Claims, Credit unions. therefore the Board is not issuing a independent regulatory agencies to notice of proposed rulemaking. Rules consider the impact of their actions on 12 CFR Part 717 that are exempt from notice and state and local interests.17 The NCUA, Consumer protection, Credit unions, comment procedures are also exempt an independent regulatory agency as Information, Privacy, Reporting and from the RFA requirements, including defined in 44 U.S.C. 3502(5), voluntarily recordkeeping requirements. conducting a regulatory flexibility complies with the executive order to 12 CFR Part 725 analysis, when among other things the adhere to fundamental federalism agency for good cause finds that notice principles. The final rule does not have Central liquidity facility. and public procedure are impracticable, substantial direct effects on the states, 12 CFR Part 740 unnecessary, or contrary to the public on the relationship between the national interest. Accordingly, the Board has government and the states, or on the Advertisements, Credit unions, Share concluded that the RFA’s requirements distribution of power and insurance, Signs and symbols. relating to initial and final regulatory responsibilities among the various 12 CFR Part 741 flexibility analysis do not apply. levels of government. The NCUA has Paperwork Reduction Act therefore determined that this final rule Bank deposit insurance, Credit does not constitute a policy that has unions, Reporting and recordkeeping The Paperwork Reduction Act of 1995 federalism implications for purposes of requirements. (PRA) applies to rulemakings in which the Executive order. an agency by rule creates a new 12 CFR Part 747 paperwork burden on regulated entities List of Subjects Administrative practice and or increases an existing burden.13 For 12 CFR Part 700 procedure, Bank deposit insurance, purposes of the PRA, a paperwork Claims, Credit unions, Crime, Equal Credit unions. access to justice, Investigations, 9 Id. at 553(b)(B). 12 CFR Part 701 Lawyers, Penalties. 10 5 U.S.C. 553(d). For the same reasons, the Board is not providing the usual 60-day comment Advertising, Aged, Civil rights, Credit, 12 CFR Part 748 period before finalizing this rule. See NCUA Credit unions, Fair housing, Individuals Interpretive Ruling and Policy Statement (IRPS) 87– Credit unions, Reporting and with disabilities, Insurance, Marital 2, as amended by IRPS 03–2 and IRPS 15–1. 80 FR recordkeeping requirements, Security 57512 (Sept. 24, 2015), available at https:// measures. www.ncua.gov/files/publications/irps/IRPS1987- 14 5 U.S.C. 801–808. 2.pdf. 15 5 U.S.C. 551, 804. 12 CFR Part 750 11 5 U.S.C. 601–612. 16 Public Law 105–277, sec. 654, 112 Stat. 2681, 12 5 U.S.C. 553(b)(3)(B). 2681–528 (1998). Credit unions, Golden parachute 13 44 U.S.C. 3501–3521. 17 ‘‘Federalism,’’ E.O. 13,132 (Aug. 10, 1999). payments, Indemnity payments.

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By the National Credit Union 701.31 is also authorized by 15 U.S.C. 1601 1775 Duke Street, Alexandria, VA 22314– Administration Board on , 2020. et seq.; 42 U.S.C. 1981 and 3601–3610. 3428 Gerard Poliquin, Section 701.35 is also authorized by 42 Phone: 703–519–4600 U.S.C. 4311–4312. Secretary of the Board. Fax: 703–519–6674 Email: [email protected] § 701.22 [Amended] Correction States in the Eastern Region include: In FR Doc. 2015–26790, appearing on ■ 4. In § 701.22, amend paragraph (e) by Connecticut, Delaware, the District of page 66626 in the Federal Register of removing the citation ‘‘(b)(1)(ii)’’ and Columbia, Maine, Maryland, Massachusetts, Thursday, , 2015, the adding in its place the citation Michigan, New Hampshire, New Jersey, New following corrections are made: ‘‘(b)(5)(ii)’’. York, Ohio, Pennsylvania, Rhode Island, ■ 5. Amend § 701.34 by revising Vermont, Virginia, and West Virginia. § 702.1 [Corrected] paragraph (a)(6) to read as follows: Southern Region—Austin ■ 1. On page 66706, in the third column, 4807 Spicewood Springs Road, Suite 5200, revise § 702.1(a) by removing ‘‘12 U.S.C. § 701.34 Designation of low income status; Austin, TX 78759–8490 Acceptance of secondary capital accounts Phone: 512–342–5600 1776’’ adding in its place ‘‘12 U.S.C. by low-income designated credit unions. 1766’’. Fax: 512–342–5620 * * * * * Email: [email protected] ■ 2. On page 66722, in the first column, (a) * * * remove instruction 11. States in the Southern Region include: (6) Definitions. The following Alabama, Arkansas, Florida, Georgia, § 702.305 [Corrected] definitions apply to this section: Indiana, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Oklahoma, ■ 3. On page 66722, in the first column, Median family income and total median earnings for individuals are Tennessee, and Texas, as well as Puerto Rico correct instruction 12 to read as follows: and the U.S. Virgin Islands. ‘‘Amend newly redesignated income statistics reported by the U.S. Western Region—Tempe § 702.305(b)(4) by removing the citation Census Bureau. The applicable income data can be obtained via the American 1230 West Washington Street, Suite 301, ‘‘§ 702.504’’ and adding in its place Tempe, AZ 85281 ‘‘§ 702.304’’ Community Survey on the Census Bureau’s web page at http:// Phone: 602–302–6000 For the reasons discussed above, the Fax: 602–302–6024 Board is correcting FR Doc. 2015–26790, www.census.gov. Metropolitan area means an area Email: [email protected] as set forth above, and amending 12 CFR States in the Western Region include: parts 700, 701, 702, 704, 705, 707, 708a, designated by the Office of Management and Budget pursuant to 31 U.S.C. Alaska, Arizona, California, Colorado, 708b, 709, 717, 725, 740, 741, 747, 748, Hawaii, Idaho, Illinois, Iowa, Kansas, and 750 as follows: 1104(d), 44 U.S.C. 3504(c), and Executive Order 10253 (, 1951) Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Nevada, Oregon, PART 700—DEFINITIONS (as amended). South Dakota, Utah, Washington, Wisconsin, * * * * * and Wyoming, as well as Guam. ■ 1. The authority citation for part 700 ■ 6. Amend appendix B to part 701 by continues to read as follows: * * * * * revising the first sentence of the second Authority: 12 U.S.C. 1752, 1757(6), 1766. paragraph under the heading ‘‘III Appendix 5 ■ 2. Amend § 700.2 by: —Subscribers’’, Appendix 3, and Trades Associations ■ a. Removing the definition of Appendix 5 to read as follows: Credit Union National Association (CUNA) ‘‘Noninsured credit union’’; and Appendix B to Part 701—Chartering www.cuna.org ■ b. Adding in alphabetical order the and Field of Membership Manual P.O. Box 431, Madison, WI 53701, 800–356– definition of ‘‘Non-federally insured 9655 credit union’’. * * * * * National Association of Federally-Insured The addition reads as follows: III—Subscribers Credit Unions (NAFCU) § 700.2 Definitions * * * * * www.nafcu.org Persons interested in organizing a Federal 3138 N 10th Street, Suite 300, Arlington, VA * * * * * 22201–2149, 800–336–4644 Non-federally insured credit union credit union should contact one of the credit National Association of State Credit Union means a credit union chartered under union trade associations or the NCUA Office of Credit Union Resources and Expansion. Supervisors (NASCUS) the laws of any State, the District of *** www.nascus.org Columbia, the several territories and * * * * * 1655 North Fort Myer Drive, Suite 650, possessions of the United States, the Arlington, VA 22209, 703–528–8351 Panama Canal Zone, or the Appendix 3 Inclusiv Commonwealth of Puerto Rico, whose NCUA Offices https://www.inclusiv.org/ member accounts are not insured by the 39 Broadway, Suite 2140, New York, NY Office of Credit Union Resources and NCUA. 10006–3063, 212–809–1850 Expansion (CURE) * * * * * 1775 Duke Street, Alexandria, VA 22314– PART 702—CAPITAL ADEQUACY 3428 PART 701—ORGANIZATION AND Phone: 703–518–1150 OPERATION OF FEDERAL CREDIT Fax: 703–518–6672 ■ 7. The authority citation for part 702 UNIONS Email: [email protected] continues to read as follows: The Divisions of Consumer Access (East, ■ Authority: 12 U.S.C. 1766(a), 1790d. 3. The authority citation for part 701 Central, and West) within CURE share the continues to read as follows: responsibility for chartering and field-of- § 702.306 [Amended] Authority: 12 U.S.C. 1752(5), 1755, 1756, membership matters, low-income 1757, 1758, 1759, 1761a, 1761b, 1766, 1767, designations, charter conversions, and bylaw ■ 8. In § 702.306(a)(1)(i), remove the 1782, 1784, 1786, 1787, 1789. Section 701.6 amendments. word ‘‘the-present’’ and add, in its is also authorized by 15 U.S.C. 3717. Section Eastern Region—Alexandria place, the word ‘‘then-present’’.

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PART 703—INVESTMENT AND NEV ratio, or any NEV ratio calculated representative on the board of the DEPOSIT ACTIVITIES under paragraph (d) of this section corporate credit union; exceeds established or permitted limits, * * * * * ■ 9. The authority citation for part 703 or the corporate credit union is unable (8) In the case of a corporate credit continues to read as follows: to satisfy the tests in paragraph (f) or (g) union whose membership is composed Authority: 12 U.S.C. 1757(7), 1757(8), of this section, the operating of more than 25 percent non-credit 1757(15). management of the corporate credit unions, the majority of directors serving ■ 10. Revise § 703.14(k) to read as union must immediately report this as representatives of member credit follows: information to its board of directors and unions, including the chair, must be ALCO; and elected only by member credit unions; § 703.14 Permissible investments. (ii) If the corporate credit union and * * * * * cannot adjust its balance sheet to meet * * * * * (k) Derivatives. A Federal credit union the requirements of paragraph (d), (f), or may only enter into the following (g) of this section within 10 calendar ■ 20. Revise § 704.19(a) introductory derivatives transactions: days after detection by the corporate text to read as follows: credit union, the corporate credit union * * * * * § 704.19 Disclosure of executive must notify in writing the Director of compensation. § 703.112 [Amended] the Office of National Examinations and ■ 11. In § 703.112, amend paragraph (a) Supervision. (a) Annual disclosure. A corporate credit union must annually prepare and by removing the word ‘‘fescribed’’ and * * * * * maintain a disclosure of the dollar adding, in its place, the word (k) Overall limit on business amount of compensation paid to its ‘‘described’’. generated from individual credit unions. most highly compensated employees, On or after , 2013, a corporate including compensation from any PART 704—CORPORATE CREDIT credit union is prohibited from corporate CUSO in which the corporate UNIONS accepting from any member, or any credit union has invested or made a nonmember credit union, any ■ 12. The authority citation for part 704 loan, in accordance with the following investment, including shares, loans, continues to read as follows: schedule: PCC, or NCAs if, following that Authority: 12 U.S.C. 1766(a), 1781, 1789. investment, the aggregate of all * * * * * § 704.1 [Amended] investments from that entity in the § 704.20 [Added and Reserved] corporate credit union would exceed 15 ■ 13. In § 704.1, amend paragraph (a) by percent of the corporate credit union’s ■ 21. Add reserved § 704.20. removing in the second sentence the moving daily average net assets. ■ words ‘‘Noninsured corporate credit 22. Amend § 704.22 by revising ■ unions’’ and adding, in their place, the 18. Amend § 704.11 by: paragraph (b) to read as follows: ■ a. Adding the words ‘‘credit union’’ words ‘‘Non-federally insured corporate § 704.22 Membership fees. credit unions’’. after the second use of the word ‘‘corporate’’ in the last sentence of * * * * * § 704.4 [Amended] paragraph (b)(2); (b) The corporate credit union must ■ 14. Amend § 704.4 by adding the ■ b. Adding the words ‘‘credit union’’ calculate the fee uniformly for all words ‘‘credit union’’ after ‘‘corporate’’ after ‘‘corporate’’ in the first sentence of members as a percentage of each in the last sentence of paragraph paragraph (b)(3); member’s assets, except that the (e)(1)(ii)(5). ■ c. Adding the word ‘‘from’’ between corporate credit union may reduce the the words ‘‘activity’’ and ‘‘the’’ in amount of the fee for members that have § 704.5 [Amended] paragraph (e)(2); and contributed capital to the corporate ■ 15. In § 704.5 amend paragraph (e)(4) ■ d. Revising paragraph (g)(7). credit union. Any reduction must be by adding the words ‘‘credit union’’ The revision reads as follows: proportional to the amount of the after ‘‘corporate’’ in the last sentence. member’s nondepleted contributed § 704.11 Corporate Credit Union Service capital. ■ 16. Amend § 704.6 by revising Organizations (Corporate CUSOs). * * * * * paragraph (f)(2) to read as follows. * * * * * § 704.6 Credit risk management. (g) * * * Appendix A to Part 704 [Amended] * * * * * (7) Will inform the corporate credit union, at least quarterly, of all the ■ 23. Amend appendix A to part 704 as (f) * * * follows: (2) A corporate credit union must compensation paid by the CUSO to its ■ identify and monitor any changes in employees who are also employees of a. In Part I, add the words ‘‘credit credit quality of the investment and the corporate credit union; and union’’ between the words ‘‘corporate’’ retain appropriate supporting * * * * * and ‘‘on’’ in the first sentence; ■ documentation as long as the corporate ■ 19. Amend § 704.14 by revising b. In Part I, add the words ‘‘credit credit union owns the investment. paragraphs (a)(4) and (8) to read as union’’ between the words ‘‘corporate’’ * * * * * follows: and ‘‘before’’ in the first sentence; ■ ■ 17. Amend § 704.8 by revising c. In Part II, Model Form C, add the § 704.14 Representation. paragraphs (j)(1) and (k) to read as words ‘‘credit union’’ after the word follows: (a) * * * ‘‘corporate’’ in the second sentence of (4) No individual may be elected or paragraph (3); and § 704.8 Asset and liability management. appointed to serve on the board if, after ■ d. In Part II, Model Form D, add the * * * * * such election or appointment, any words ‘‘credit union’’ after the word (j) Limit breaches. (1)(i) If a corporate member of the corporate credit union ‘‘corporate’’ in the second sentence of credit union’s decline in NEV, base case would have more than one paragraph (3).

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Appendix B to Part 704 [Amended] qualifying loan if it meets all other ■ i. Redesignate sections (a)(1)(2) requirements of this definition; ■ through (a)(1)(6) as (a)(1)(3) through 24. Amend appendix B to part 704 as * * * * * (a)(1)(7); and follows: ■ ■ a. In paragraph titled ‘‘Base-Plus’’, add PART 705—COMMUNITY ii. redesignate the second section the words ‘‘credit union’’ after the word DEVELOPMENT REVOLVING LOAN numbered (1) as (2). ‘‘corporate’’; FUND ACCESS FOR CREDIT UNIONS The revisions read as follows: ■ b. In paragraph (b)(1) of Part III, remove the word ‘‘corporate’s’’ and add, ■ 26. The authority citation for part 705 Appendix C to Part 707—Official Staff in its place, ‘‘corporate credit union’s’’; continues to read as follows: Interpretations ■ c. In paragraph (b)(2) of Part III, add Authority: 12 U.S.C. 1756, 1757(5)(D), and * * * * * the words ‘‘credit union’’ between the (7)(I), 1766, 1782, 1784, 1785 and 1786. words ‘‘corporate’’ and ‘‘must’’; Section 707.2—Definitions ■ d. In paragraph (b)(2) of Part III, § § 705.2 and 705.7 [Amended] * * * * * ■ remove the word ‘‘corporate’s’’ and add, 27. Amend §§ 705.2 and 705.7(b)(3) by (i) Dividend and Dividends in its place, ‘‘corporate credit union’s’’; removing ‘‘noninsured credit union’’ * * * * * ■ e. In paragraph (b)(3) of Part III, add and adding in its place ‘‘Non-federally 4. * * * the words ‘‘credit union’’ after the word insured credit union’’. ‘‘corporate’’; D. I further certify that the Board of ■ f. In paragraph (b)(4) of Part III, add PART 707—TRUTH IN SAVINGS Directors of this Credit Union has, and at the the words ‘‘credit union’’ between the time of adoption of this resolution had, full ■ power and lawful authority to adopt the words ‘‘corporate’’ and ‘‘must’’; and 28. The authority citation for part 707 foregoing resolutions and that this resolution ■ g. In paragraph (b)(4) of Part III, continues to read as follows: revokes any prior resolution. remove the word ‘‘corporate’s’’ and add, Authority: 12 U.S.C. 4311. * * * * * in its place, ‘‘corporate credit union’s’’. ■ 29. Amend appendix B to part 707 by: Appendix C to Part 704 [Amended] ■ a. Adding a paragraph at the end of (z) Variable-Rate Account the introductory text; * * * * * ■ 25. Amend appendix C to part 704 by: ■ b. In the note to B–6 Sample Form 2. Differences between fixed-rate and ■ a. In Part I, paragraph (b): (REGULAR SHARE ACCOUNT variable-rate accounts. All accounts must ■ i. Revising the definition of ‘‘Face DISCLOSURES), revising either be fixed-rate or variable-rate accounts. amount;’’ and ‘‘Nonfederally’’ to read as ‘‘Non- Classifying an account as variable-rate affects ■ ii. Revising paragraph (2) of the federally’’, credit unions three ways: definition of ‘‘Qualifying mortgage ■ c. In B–9 ‘‘Sample Form (TERM * * * * * loan;’’ SHARE (CERTIFICATE) ACCOUNT ■ b. In Part II, paragraph (a)(6), in the DISCLOSURES)’’: Section 707.4—Account Disclosures first sentence, remove the word ■ i. In paragraph 3, removing the word * * * * * ‘‘corporate’s’’ and add, in its place, ‘‘minium’’ in the first non-italicized ‘‘corporate credit union’s’’; sentence, and adding in its place the (a)(2) Requests ■ c. In Part II, paragraph (b)(2)(ii), in the word ‘‘minimum’’; and (a)(2)(i) ■ ii. In the ‘‘NOTE’’ in the last sentence, last sentence, remove the word ‘‘or’’ and * * * * * add, in its place, the word ‘‘of’’; and removing the word ‘‘if’’, and adding in 2. General requests. When members or ■ d. In Part II, paragraph (c)(3)(i), in the its place, the word ‘‘is’’. potential members request disclosures about last sentence, remove the word The addition reads as follows: a type of account (a share draft account, for ‘‘corporate’s’’ and add, in its place, the Appendix B to Part 707—Model Clauses example), a credit union that offers several words ‘‘corporate credit union’s’’. and Sample Forms variations may provide disclosures for any The revisions read as follows: one of them. No disclosures need be made to * * * * * Appendix C to Part 704—* nonmembers, though a credit union may Note also that certain information that provide disclosures to nonmembers within * * * * * appeared in previous versions of the NCUA its sole discretion. Accounting Manual for FCUs that served as Part I a model for this appendix do not appear in * * * * * * * * * * the current version of that publication. (b) Content of Account Disclosures (b) * * * * * * * * * * * * * Face amount means the notional principal, ■ 30. Amend appendix C to part 707 by: or face value, amount of an off-balance sheet ■ a. In Section 707.2: (b)(6)(ii) Early Withdrawal Penalties item or the amortized cost of an on-balance ■ i. Under ‘‘(i) Dividend and Dividends’’ sheet asset. * * * * * revise paragraph 4.D; 2. * * * * * * * * ■ ii. Under ‘‘(z) Variable-Rate Account’’, i. Monetary penalties, such as a specific Qualifying mortgage loan *** revise the first sentence of paragraph 2; dollar amount (e.g., ‘‘$10.00’’) or a specific (2) Is underwritten in accordance with ■ b. In Section 707.4, days’ worth of dividends (e.g., ‘‘seven days’ prudent underwriting standards, including ■ i. Under ‘‘(a)(2)(i)’’ revise paragraph dividends plus accrued but uncredited standards relating to the ratio of the loan (2; dividends, but only if the account is closed’’). amount to the value of the property (LTV ■ ii. Under ‘‘(b)(6)(ii)’’ revise paragraph ratio), as presented in the Interagency * * * * * Guidelines for Real Estate Lending Policies (2)(i); ■ (, 1992). A nonqualifying c. In Section 707.7, revise the heading Section 707.7—Payment of Dividends mortgage loan that is paid down to an for ‘‘(a)(2)’’; * * * * * appropriate LTV ratio (calculated using value ■ d. In Section 707.9, under ‘‘(c)Record at origination, appraisal obtained within the retention’’, revise paragraph (1)(ii); (a2) Determination of Minimum Balance To prior six months, or updated value using an ■ e. In Section 707.11, under ‘‘(a)(1) Earn Dividends automated valuation model) may become a General’’: * * * * *

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Section 707.9—Enforcement and Record PART 709—INVOLUNTARY ■ 46. Revise § 740.5(c)(6) to read as Retention LIQUIDATION OF FEDERAL CREDIT follows: UNIONS AND ADJUDICATION OF (c) Record retention § 740.5 *. CREDITOR CLAIMS INVOLVING * * * * * FEDERALLY INSURED CREDIT * * * * * ii. Retained sample disclosures for each UNIONS IN LIQUIDATION (c) * * * type of account offered to members, such as (6) Joint or group advertisements of account-opening disclosures, copies of ■ 36. The authority citation for part 709 credit union services where the names advertisements, and change-in-term notices; continues to read as follows: and information regarding the dividend rates of federally insured credit unions and and annual percentage yields offered. Authority: 12 U.S.C. 1757, 1766, 1767, Non-federally insured credit unions are 1786(h), 1786(t), and 1787(b)(4), 1788, 1789, listed and form a part of such * * * * * 1789a. advertisement; PART 708a—BANK CONVERSIONS § 709.8 [Amended] * * * * * AND MERGERS ■ 37. In § 709.8 amend paragraph (f) by PART 741—REQUIREMENTS FOR in the first sentence, adding the word INSURANCE ■ 31. The authority citation for part ‘‘is’’ between the words ‘‘request’’ and 708a continues to read as follows: ‘‘filed’’. ■ 47. The authority citation for part 741 Authority: 12 U.S.C. 1766, 1785(b), § 709.9 [Amended] continues to read as follows: 1785(c). ■ 38. In § 709.9 amend paragraph Authority: 12 U.S.C. 1757, 1766(a), 1781– 1790, and 1790d; 31 U.S.C. 3717. § 708a.304 [Amended] (b)(5)(ii)(B) by, in the last sentence, removing the word ‘‘all’’ after the word § 741.4 [Amended] ■ 36. In § 708a.304(a)(13), remove the ‘‘existing’’. words ‘‘currently $63.4 million,’’. ■ 48. In §§ 741.4(i)(2) and (j)(1), remove PART 717—FAIR CREDIT REPORTING the word ‘‘nonfederally’’ and add in its PART 708b—MERGERS OF INSURED place the word ‘‘non-federally’’. CREDIT UNIONS INTO OTHER CREDIT ■ 39. The authority citation for part 717 UNIONS; VOLUNTARY TERMINATION continues to read as follows: § 741.204 [Amended] OR CONVERSION OF INSURED Authority: 12 U.S.C. 1766(a), 1789; 15 ■ 49. In § 741.204(c), add the word STATUS U.S.C. 1681m(e). ‘‘union’’ after the word ‘‘credit’’ in the § 717.82 [Amended] first sentence the first time that word ■ 32. The authority citation for part appears. ■ 708b continues to read as follows: 40. In § 717.82(a), add the word ‘‘a’’ between words ‘‘is’’ and ‘‘federal’’. PART 747—ADMINISTRATIVE Authority: 12 U.S.C. 1752(7), 1766, 1785, ACTIONS, ADJUDICATIVE HEARINGS, 1786, 1789. PART 725—NATIONAL CREDIT UNION RULES OF PRACTICE AND ADMINISTRATION CENTRAL PROCEDURE, AND INVESTIGATIONS ■ 33. Throughout part 708b, remove the LIQUIDITY FACILITY terms ‘‘nonfederal’’, ‘‘noninsured’’, ■ 50. The authority citation for part 747 ■ 41. The authority citation for part 725 ‘‘noninsured credit union’’, and continues to read as follows: ‘‘noninsured state credit union’’ and continues to read as follows: Authority: 12 U.S.C. 1766, 1782, 1784, add in their place ‘‘non-Federal’’, ‘‘non- Authority: 12 U.S.C. 1795f(a)(2). 1785, 1786, 1787, 1790a, 1790d; 15 U.S.C. federally insured’’, ‘‘Non-federally § 725.4 [Amended] 1639e; 42 U.S.C. 4012a; Pub. L. 101–410; insured credit union’’, and ‘‘Non- Pub. L. 104–134; Pub. L. 109–351; Pub. L. federally insured credit union’’, ■ 42. Amend § 725.4 as follows: 114–74. respectively. ■ a. In paragraph (b)(4), add the word ‘‘the’’ between the words ‘‘of’’ and § 747.0 [Amended] § 708b.1 [Amended] ‘‘Facility’’; and ■ 51. In § 747.0, in the second sentence, ■ b. In paragraph (e), remove the word ■ add the words ‘‘(Uniform Rules)’’ after 34. Amend § 708b.1 as follows: ‘‘agent’’ and add in its place ‘‘Agent’’ in the words ‘‘uniform rules of practice ■ a. In paragraph (a), remove the word the first sentence. and procedure’’. ‘‘partprescribes’’, and, add in its place, § 725.18 [Amended] the phrase ‘‘part prescribes’’. § 747.29 [Amended] ■ 43. In § 725.18(c), in the first sentence, ■ b. In paragraph (b), remove the word add a closing quotation mark after the ■ 52. In § 747.29(a)(2), remove the word ‘‘partprescribes’’, and, add in its place, word ‘‘insolvency’’. ‘‘part’’ and add in its place the word the phrase ‘‘part prescribes’’. ‘‘party’’. ■ PART 740—ACCURACY OF c. In paragraph (d), remove the word § 747.207 [Amended] ‘‘partrestricts’’, and, add in its place, the ADVERTISING AND NOTICE OF phrase ‘‘part restricts’’. INSURED STATUS ■ 53. In § 747.207, amend paragraph 3 of the sample notice, by removing ■ § 708b.205 [Amended] 44. The authority citation for part 740 ‘‘$100,000’’ and adding, in its place, continues to read as follows: ■ 35. In § 708b.205 amend paragraph (c) ‘‘$250,000’’; Authority: 12 U.S.C. 1766, 1781, 1785, and by removing the word ‘‘state’’ and 1789. § 747.306 [Amended] adding, in its place, ‘‘state-chartered’’. ■ 45. Throughout part 740, remove the ■ 54. In § 747.306(b), in the first term ‘‘nonfederally’’ and add in its place sentence, remove the words ‘‘state with’’ the word ‘‘Non-federally’’. the second time they appear;

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§ 747.402 [Amended] ACTION: Notification of preliminary 5. Any utilization of the TikTok ■ 55. In § 747.402(b), remove the word injunction. mobile application’s constituent code, ‘‘or’’ between the words ‘‘dissipation’’ functions, or services in the functioning SUMMARY: The U.S. Department of of software or services developed and/ and ‘‘credit’’ and add in its place the Commerce (‘‘Department’’) is issuing word ‘‘of’’. or accessible within the land and this document to inform the public of a maritime borders of the United States PART 748—SECURITY PROGRAM, preliminary injunction ordered by a and its territories; or REPORT OF SUSPECTED CRIMES, United States district court on 6. Any other transaction by any SUSPICIOUS TRANSACTIONS, , 2020, preventing the person, or with respect to any property, CATASTROPHIC ACTS AND BANK implementation of specific Department subject to the jurisdiction of the United SECRECY ACT COMPLIANCE actions. States, with ByteDance Ltd., or its DATES: The court order was effective subsidiaries, including TikTok Inc., in ■ 56. The authority citation for part 748 September 27, 2020. which any such company has any continues to read as follows: FOR FURTHER INFORMATION CONTACT: interest, as may be identified at a future Authority: 12 U.S.C. 1766(a), 1786(q); 15 Kathy Smith, National date under the authority delegated U.S.C. 6801–6809; 31 U.S.C. 5311 and 5318. Telecommunications and Information under Executive Order 13942. Transactions identified in paragraph 1 Appendix B to Part 748 [Amended] Administration, U.S. Department of Commerce, 1401 Constitution Avenue above were to be prohibited at 11:59 ■ 57. Amend appendix B to part 748 as NW, Washington, DC 20230; telephone: p.m. eastern standard time on follows: (202) 482–1859. September 27, 2020; transactions ■ a. In footnote 34, remove the word For media inquiries: Meghan Burris, identified in paragraphs 2, 3, 4, and 5 ‘‘identify’’ and add, in its place, the Director, Office of Public Affairs, U.S. above were to be prohibited at 11:59 word ‘‘identity’’; Department of Commerce, 1401 p.m. eastern standard time on November ■ b. In footnote 39, remove the word Constitution Avenue NW, Washington, 12, 2020. ‘‘Suspiciouis’’ and add, in its place, the DC 20230; telephone: (202) 482–4883. Preliminary Injunction word ‘‘Suspicious’’; and SUPPLEMENTARY INFORMATION: On ■ On , 2020, TikTok Inc. c. In footnote 39, remove the word , 2020, the Department filed a lawsuit in the United States ‘‘Isues’’ and add, in its place, the word published the ‘‘Identification of District Court for the District of ‘‘Issues’’. Prohibited Transactions to Implement Columbia (TikTok Inc. et al. v. Trump Executive Order 13942 and Address the et al., No. 20–cv–02658), seeking PART 750—GOLDEN PARACHUTE Threat Posed by TikTok and the AND INDEMNIFICATION PAYMENTS various relief, including a court order to National Emergency with Respect to the prohibit the Department from Information and Communications ■ 58. The authority citation for part 750 implementing or enforcing Executive Technology and Services Supply Chain’’ continues to read as follows: Order 13942 or the identified prohibited (the ‘‘Identification’’) in the Federal transactions. Plaintiffs subsequently Authority: 12 U.S.C. 1786(t). Register at 85 FR 60061. The filed a motion for a preliminary § 750.5 [Amended] Identification provided that the injunction to pursue such relief. following transactions would be On September 27, 2020, the District ■ 59. In § 750.5(a)(3), add a space prohibited: Court issued an Order granting in part between the word ‘‘in’’ and ‘‘§ 750.1(j)’’. 1. Any provision of services to and denying in part the Plaintiffs’ § 750.6 [Amended] distribute or maintain the TikTok motion for a preliminary injunction. mobile application, constituent code, or This Order enjoined the Department ■ 60. In § 750.6(a), in the first sentence, application updates through an online from implementing the prohibition on add a space between the word ‘‘to’’ and mobile application store, or any online transactions identified in Paragraph 1 ‘‘§ 750.1(d)(2)(v)’’. marketplace where mobile users within above. [FR Doc. 2020–17372 Filed 10–1–20; 8:45 am] the land or maritime borders of the The Department is complying with BILLING CODE 7535–01–P United States and its territories may the terms of this order. Accordingly, this download or update applications for use serves as NOTICE that the Secretary’s on their mobile devices; prohibition of identified transactions DEPARTMENT OF COMMERCE 2. Any provision of internet hosting (limited to the transactions identified in services enabling the functioning or Paragraph 1 above) pursuant to 15 CFR Chapter VII optimization of the TikTok mobile Executive Order 13942, related to application within the land and TikTok, HAS BEEN ENJOINED, and [Docket Number 200928–0256] maritime borders of the United States WILL NOT GO INTO EFFECT, pending and its territories; RIN 0605–XD009 further legal developments. 3. Any provision of content delivery Any further guidance and updates Identification of Prohibited network services enabling the regarding the subject litigation will be Transactions To Implement Executive functioning or optimization of the posted on the Department website Order 13942 and Address the Threat TikTok mobile application within the (www.commerce.gov) on an ongoing Posed by TikTok and the National land and maritime borders of the United basis. States and its territories; Emergency With Respect to the Dated: , 2020. Information and Communications 4. Any provision of directly contracted or arranged internet transit or Technology and Services Supply This document of the Department of Chain; Preliminary Injunction Order peering services enabling the Commerce was signed on September 29, by Entered by a Federal District Court functioning or optimization of the Wilbur Ross, Secretary of Commerce. That TikTok mobile application within the document with the original signature and AGENCY: Office of the Secretary, U.S. land and maritime borders of the United date is maintained by the Department of Department of Commerce. States and its territories; Commerce. For administrative purposes only,

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and in compliance with requirements of the Convention’’), , 1961, 18 E). On , 2020, Congress Office of the Federal Register, the U.S.T. 1407, 570 U.N.T.S. 151, as extended the temporary control of undersigned Department of Commerce amended. Article 3, paragraph 7 of the fentanyl-related substances, as set forth Federal Register Liaison Officer has been Single Convention requires that if the in 21 CFR 1308.11(h)(30), until , authorized to sign and submit the document in electronic format for publication, as an Commission on Narcotic Drugs 2021. Public Law 116–114, sec. 2, 134 official document of the Department of (‘‘Commission’’) adds a substance to one Stat. 103 (2020). Commerce. This administrative process in no of the schedules of such Convention, In November 2019, the Director- way alters the legal effect of this document and the United States receives General of the World Health upon publication in the Federal Register. notification of such scheduling decision Organization recommended to the Signed in Washington, DC, on September from the Secretary-General of the United Secretary-General that crotonyl fentanyl 29, 2020. Nations (‘‘Secretary-General’’), the and valeryl fentanyl be placed in Asha Mathew, United States, as a signatory Member Schedule I of the Single Convention, as Federal Register Liaison Officer, U.S. State, is obligated to control the these two substances have opioid Department of Commerce. substance under its national drug mechanisms of action and similarity to control legislation. Under 21 U.S.C. [FR Doc. 2020–21897 Filed 9–30–20; 1:00 pm] drugs that are controlled in Schedule I 811(d)(1) of the Controlled Substances BILLING CODE 3510–20–P of the Single Convention (i.e., crotonyl Act (CSA), if control of a substance is fentanyl is similar to drugs such as required ‘‘by United States’ obligations oxycodone and fentanyl; valeryl under international treaties, DEPARTMENT OF JUSTICE fentanyl is similar to drugs such as conventions, or protocols in effect on fentanyl), and have dependence and Drug Enforcement Administration , 1970,’’ the Attorney General abuse potential. On , 2020, the must issue an order permanently Secretary-General advised the Secretary 21 CFR Part 1308 controlling such drug under the of State of the United States, by letter, schedule he deems most appropriate to that during its 63rd session in March [Docket No. DEA–633] carry out such obligations, without 2020, the Commission voted to place regard to the findings required by 21 Schedules of Controlled Substances: crotonyl fentanyl and valeryl fentanyl in U.S.C. 811(a) or 812(b), and without Schedule I of the Single Convention Placement of Crotonyl Fentanyl in regard to the procedures prescribed by Schedule I (CND Mar/63/2 and Mar/63/3). Valeryl 21 U.S.C. 811(a) and (b). The Attorney fentanyl is temporarily controlled in AGENCY: Drug Enforcement General has delegated scheduling schedule I of the CSA until , Administration, Department of Justice. authority under 21 U.S.C. 811 to the 2021 (85 FR 5321, Jan. 30, 2020), and it ACTION: Final amendment; final order. Administrator of the Drug Enforcement will not be discussed in this final Administration (Administrator of DEA order.2 SUMMARY: With the issuance of this final or Administrator). 28 CFR 0.100. order, the Acting Administrator of the Crotonyl Fentanyl Background Drug Enforcement Administration As discussed in the background maintains the placement of crotonyl On February 6, 2018, DEA issued a section, crotonyl fentanyl is temporarily fentanyl ((E)-N-(1-phenethylpiperidin-4- temporary scheduling order, placing controlled in schedule I of the CSA, as yl)-N-phenylbut-2-enamide), including fentanyl-related substances, as defined it meets the definition of fentanyl- its isomers, esters, ethers, salts, and salts in the order, in schedule I of the CSA. related substances, pursuant to 21 CFR of isomers, esters, and ethers, in 83 FR 5188. That order was based on 1308.11(h)(30). Accordingly, crotonyl schedule I of the Controlled Substances findings by the former Acting fentanyl is scheduled as part of a class Act. This scheduling action discharges Administrator that the temporary of substances. the United States’ obligations under the scheduling of this class of substances Single Convention on Narcotic Drugs was necessary to avoid an imminent Crotonyl fentanyl has a (1961). This action continues to impose hazard to the public safety; the order pharmacological profile similar to the regulatory controls and was codified at 21 CFR 1308.11(h)(30). morphine, fentanyl, and other synthetic m administrative, civil, and criminal On , 2019, in the Federal opioids that act as -opioid receptor sanctions applicable to schedule I Register, DEA provided the chemical agonists. For this reason, crotonyl controlled substances on persons who name for crotonyl fentanyl, along with fentanyl is abused for its opioid-like handle (manufacture, distribute, import, four other substances, identifying how effects. export, engage in research or conduct these individual substances met the Law enforcement reports in the instructional activities with, or possess), definition for fentanyl-related United States demonstrate the illicit use or propose to handle crotonyl fentanyl. substances,1 and, as such, were already and distribution of this substance, DATES: Effective October 2, 2020. covered by the February 2018 temporary which are similar to that of heroin and prescription opioid analgesics. The FOR FURTHER INFORMATION CONTACT: order. 84 FR 16397. Regarding crotonyl National Forensic Laboratory Scott A. Brinks, Regulatory Drafting and fentanyl specifically, this substance was Information System (NFLIS) is a Policy Support Section, Diversion not otherwise controlled in any national drug forensic laboratory Control Division, Drug Enforcement schedule (i.e., listed under another reporting system that systematically Administration; Mailing Address: 8701 Administration Substance Controlled collects results from drug chemistry Morrissette Drive, Springfield, Virginia Number) and is structurally related to analyses conducted by other federal, 22152; Telephone: (571) 362–3261. fentanyl by the replacement of the N- propionyl group by another acyl group state, and local forensic laboratories SUPPLEMENTARY INFORMATION: (i.e., meets definition for modification across the country. According to Legal Authority 1 These four other substances (2′-fluoro ortho- 2 DEA issued a notice of proposed rulemaking to The United States is a party to the fluorofentanyl, ortho-methyl acetylfentanyl, beta′- permanently control valeryl fentanyl in schedule I 1961 United Nations Single Convention phenyl fentanyl, and thiofuranyl fentanyl) will not (85 FR 5356, Jan. 30, 2020) and is currently working on Narcotic Drugs (‘‘Single be discussed further in this final order. to finalize that rule.

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NFLIS,3 there have been 143 reports placed in schedule I of the CSA, the pursuant to 21 U.S.C. 822, 823, 957, and containing crotonyl fentanyl since it same schedule in which it currently 958, and in accordance with 21 CFR was first reported in June 2017. resides. Because control is required parts 1301 and 1312. DEA is not aware of any claims or any under the Single Convention, DEA will 2. Disposal of stocks. Crotonyl medical or scientific literature not be initiating regular rulemaking fentanyl must be disposed of in suggesting that crotonyl fentanyl has a proceedings to schedule crotonyl accordance with 21 CFR part 1317, in currently accepted medical use in fentanyl pursuant to 21 U.S.C. 811(a). addition to all other applicable federal, treatment in the United States. In This action establishes a specific state, local, and tribal laws. addition, the Department of Health and listing for crotonyl fentanyl in schedule 3. Security. Crotonyl fentanyl is Human Services (HHS) advised DEA, by I of the CSA within 21 CFR 1308.11(b) subject to schedule I security letter dated , 2017, that (the opiates category of schedule I), and requirements and must be handled and there were no investigational new drug assigns an Administration Controlled stored pursuant to 21 U.S.C. 821, 823, applications or approved new drug Substances Number for the substance: 871(b), and in accordance with 21 CFR applications for fentanyl-related As discussed above, crotonyl fentanyl 1301.71 through 1301.93. Non- substances, a class that, as noted, was not previously listed in schedule I practitioners handling crotonyl fentanyl includes crotonyl fentanyl. individually, but was instead must also comply with the employee DEA requested that HHS conduct a temporarily controlled as part of the screening requirements of 21 CFR scientific and medical evaluation and a class of fentanyl-related substances 1301.90 through 1301.93. scheduling recommendation for several controlled under 21 CFR 1308.11(h)(30). 4. Labeling and packaging. All labels, fentanyl-related substances, including This action will allow DEA to establish labeling, and packaging for commercial crotonyl fentanyl, by letter dated April an aggregate production quota for containers of crotonyl fentanyl must be 3, 2019. In response to this request, HHS crotonyl fentanyl and grant individual in compliance with 21 U.S.C. 825 and provided DEA a recommendation, dated manufacturing and procurement quotas 958(e), and must be in accordance with , 2020, to place crotonyl fentanyl to DEA-registered manufacturers of 21 CFR part 1302. in schedule I of the CSA. The crotonyl fentanyl who had previously 5. Quota. Only registered recommendation from HHS is consistent been granted individual quotas for such manufacturers are permitted to with the placement of crotonyl fentanyl purposes under the drug code for manufacture crotonyl fentanyl in in Schedule I of the Single Convention fentanyl-related substances. accordance with a quota assigned in March 2020. pursuant to 21 U.S.C. 826 and in Normally, 21 U.S.C. 811(b) would Conclusion accordance with 21 CFR part 1303. require DEA to secure such an HHS In order to meet the United States’ 6. Inventory. Every DEA registrant recommendation as part of the regular obligations under the Single Convention who possesses any quantity of crotonyl scheduling process. As discussed above, and because crotonyl fentanyl has no fentanyl has been required to keep an however, DEA has authority under 21 currently accepted medical use in inventory of all stocks of this substance U.S.C. 811(d)(1) to control substances treatment in the United States, the on hand as of February 6, 2018, that have been added to the Single Acting Administrator has determined pursuant to 21 U.S.C. 827 and 958(e), Convention without making any that crotonyl fentanyl, including its and in accordance with 21 CFR 1304.03, findings otherwise required by 21 U.S.C. isomers, esters, ethers, salts, and salts of 1304.04, and 1304.11. 811(a) or 812(b), and without following isomers, esters, and ethers, whenever 7. Records and Reports. DEA the procedures prescribed by 21 U.S.C. the existence of such isomers, esters, registrants must maintain records and 811(a) and (b)—including 811(b)’s ethers, and salts is possible, should submit reports with respect to crotonyl requirement that DEA secure an remain in schedule I of the CSA. fentanyl pursuant to 21 U.S.C. 827 and evaluation and recommendation from 958(e), and in accordance with 21 CFR Requirements for Handling HHS. Thus, HHS’s recommendation parts 1304, 1312, and 1317. supports scheduling crotonyl fentanyl, Crotonyl fentanyl has been controlled 8. Order Forms. All DEA registrants but its scheduling does not depend on as a schedule I controlled substance who distribute crotonyl fentanyl must that recommendation. since February 6, 2018. With continue to comply with order form Therefore, consistent with 21 U.S.C. publication of the final order contained requirements pursuant to 21 U.S.C. 828 811(d)(1), DEA concludes that crotonyl in this document, crotonyl fentanyl and in accordance with 21 CFR part fentanyl has no currently accepted remains subject to the CSA’s schedule I 1305. medical use in treatment in the United regulatory controls and administrative, 9. Importation and Exportation. All States 4 and is most appropriately civil, and criminal sanctions applicable importation and exportation of crotonyl to the manufacture of, distribution of, fentanyl must continue to be in 3 NFLIS was queried on , 2020. Data are importation of, exportation of, compliance with 21 U.S.C. 952, 953, still being collected for November 2019 to April engagement in research or conduct of 957, and 958, and in accordance with 21 2020 due to the normal lag period for labs reporting instructional activities with, and CFR part 1312. to NFLIS. possession of, schedule I controlled 10. Liability. Any activity involving 4 Although, as discussed above, there is no crotonyl fentanyl not authorized by, or evidence suggesting that crotonyl fentanyl has a substances, including the following: currently accepted medical use in treatment in the 1. Registration. Any person who in violation of the CSA, is unlawful, and United States, it bears noting that a drug cannot be handles (manufactures, distributes, may subject the person to found to have such medical use unless DEA imports, exports, engages in research or administrative, civil, and/or criminal concludes that it satisfies a five-part test. sanctions. Specifically, with respect to a drug that has not conducts instructional activities with, or been approved by the Food and Drug possesses), or who desires to handle, Regulatory Analyses Administration, to have a currently accepted crotonyl fentanyl must be registered medical use in treatment in the United States, all Executive Orders 12866, 13563, and with DEA to conduct such activities of the following must be demonstrated: i. The 13771, Regulatory Planning and Review, drug’s chemistry must be known and reproducible; Improving Regulation and Regulatory ii. there must be adequate safety studies; iii. there qualified experts; and v. the scientific evidence must be adequate and well-controlled studies must be widely available. 57 FR 10499 (, Review, and Reducing Regulation and proving efficacy; iv. the drug must be accepted by 1992). Controlling Regulatory Costs

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This action is not a significant conventions, or protocols. 21 U.S.C. may not conduct or sponsor, and a regulatory action as defined by 811(d)(1). If control is required pursuant person is not required to respond to, a Executive Order (E.O.) 12866 to such international treaty, convention, collection of information unless it (Regulatory Planning and Review), or protocol, the Attorney General, as displays a currently valid OMB control section 3(f), and the principles delegated to the Administrator, must number. reaffirmed in E.O. 13563 (Improving issue an order controlling such drug Congressional Review Act Regulation and Regulatory Review); under the schedule he deems most and, accordingly, this action has not appropriate to carry out such This action is not a major rule as been reviewed by the Office of obligations, without regard to the defined by the Congressional Review Management and Budget (OMB). This findings or procedures otherwise Act (CRA), 5 U.S.C. 804. This order will order is not an E.O. 13771 regulatory required for scheduling actions. Id. not result in: ‘‘an annual effect on the action because this rule is not In accordance with 21 U.S.C. economy of $100,000,000 or more; a significant under E.O. 12866. 811(d)(1), scheduling actions for drugs major increase in costs or prices for Executive Order 12988, Civil Justice that are required to be controlled by the consumers, individual industries, Reform United States’ obligations under Federal, State, or local government international treaties, conventions, or agencies, or geographic regions; or This action meets the applicable protocols in effect on October 27, 1970, significant adverse effects on standards set forth in sections 3(a) and shall be issued by order (as compared to competition, employment, investment, 3(b)(2) of E.O. 12988 to eliminate scheduling by rule pursuant to 21 U.S.C. productivity, innovation, or on the drafting errors and ambiguity, minimize 811(a)). Therefore, DEA believes that the ability of United States-based litigation, provide a clear legal standard notice and comment requirements of enterprises to compete with foreign- for affected conduct, and promote section 553 of the Administrative based enterprises in domestic and simplification and burden reduction. Procedure Act (APA), 5 U.S.C. 553, do export markets.’’ However, pursuant to Executive Order 13132, Federalism not apply to this scheduling action. In the CRA, DEA has submitted a copy of this final order to both Houses of This action does not have federalism the alternative, even if this action does Congress and to the Comptroller implications warranting the application constitute ‘‘rule making’’ under 5 U.S.C. General. of E.O. 13132. This action does not have 551(5), this action is exempt from the substantial direct effects on the States, notice and comment requirements of 5 List of Subjects in 21 CFR Part 1308 on the relationship between the national U.S.C. 553 pursuant to 5 U.S.C. 553(a)(1) as an action involving a Administrative practice and government and the States, or on the procedure, Drug traffic control, distribution of power and foreign affairs function of the United States because it is being done pursuant Reporting and recordkeeping responsibilities among the various requirements. levels of government. to 21 U.S.C. 811(d)(1), which requires that the United States comply with its For the reasons set out above, DEA Executive Order 13175, Consultation obligations under the specified amends 21 CFR part 1308 as follows: and Coordination With Indian Tribal international agreements. Governments PART 1308—SCHEDULES OF Regulatory Flexibility Act CONTROLLED SUBSTANCES This action does not have tribal implications warranting the application The Regulatory Flexibility Act (RFA) ■ 1. The authority citation for part 1308 of E.O. 13175. The action does not have (5 U.S.C. 601–612) applies to rules that continues to read as follows: substantial direct effects on one or more are subject to notice and comment Indian tribes, on the relationship under section 553(b) of the APA or any Authority: 21 U.S.C. 811, 812, 871(b), 956(b), unless otherwise noted. between the Federal government and other law. As explained above, the CSA Indian tribes, or on the distribution of exempts this final order from notice and ■ 2. In § 1308.11: power and responsibilities between the comment. Consequently, the RFA does ■ a. Redesignate paragraphs (b)(22) Federal government and Indian tribes. not apply to this action. through (70) as (b)(23) through (71); and ■ b. Add new paragraph (b)(22). Administrative Procedure Act Paperwork Reduction Act of 1995 The addition reads as follows: The CSA provides for an expedited This action does not impose a new scheduling action where control is collection of information requirement § 1308.11 Schedule I. required by the United States under the Paperwork Reduction Act of * * * * * obligations under international treaties, 1995. 44 U.S.C. 3501–3521. An agency (b) * * *

(22) Crotonyl fentanyl ((E)-N-(1-phenethylpiperidin-4-yl)-N-phenylbut-2-enamide) ...... 9844

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* * * * * lead time for qualifying engines and service via email, phone, and webform. vessels. The telephone number for the Public Timothy J. Shea, Reading Room is (202) 566–1744, and DATES: This final rule is effective on Acting Administrator. the telephone number for the Air Docket November 2, 2020. [FR Doc. 2020–19305 Filed 10–1–20; 8:45 am] is (202) 566–1742. For further BILLING CODE 4410–09–P ADDRESSES: The EPA has established a information on EPA Docket Center docket for this action under Docket ID services and the current status, go to No. EPA–HQ–OAR–2018–0638. All https://www.epa.gov/dockets. ENVIRONMENTAL PROTECTION documents in the docket are listed on FOR FURTHER INFORMATION CONTACT: AGENCY the www.regulations.gov website. Although listed in the index, some Alan Stout, Office of Transportation and 40 CFR Part 1042 information is not publicly available, Air Quality, Assessment and Standards e.g., CBI or other information whose Division (ASD), Environmental [EPA–HQ–OAR–2018–0638; FRL–10013–36– Protection Agency, 2000 Traverwood OAR] disclosure is restricted by statute. Certain other material, such as Drive, Ann Arbor, MI 48105; telephone RIN 2060–AU30 copyrighted material, is not placed on number: (734) 214–4805; email address: the internet and will be publicly [email protected]. Amendments Related to Marine Diesel available only in hard copy form. SUPPLEMENTARY INFORMATION: Engine Emission Standards Publicly available docket materials are Does this action apply to me? AGENCY: Environmental Protection available either electronically in Agency (EPA). www.regulations.gov or in hard copy at This action relates to marine diesel ACTION: Final rule. Air and Radiation Docket and engines with rated power between 600 Information Center, EPA Docket Center, and 1,400 kW intended for installation SUMMARY: The Environmental Protection EPA/DC, EPA WJC West Building, 1301 on vessels flagged or registered in the Agency (EPA) is amending the national Constitution Ave. NW, Room 3334, United States, vessels that use those marine diesel engine program with Washington, DC. Note that the EPA engines, and companies that relief provisions to address concerns Docket Center and Reading Room were manufacture, repair, or rebuild those associated with finding and installing closed to public visitors on , engines and vessels. certified Tier 4 marine diesel engines in 2020, to reduce the risk of transmitting Categories and business entities that certain high-speed commercial vessels. COVID–19. The Docket Center staff will might be affected by this rule include This relief is in the form of additional continue to provide remote customer the following:

a Examples of potentially affected Category NAICS code entities

Industry ...... 333618 Marine engine manufacturing. Industry ...... 336611 Shipbuilding and repairing. a North American Industry Classification System (NAICS).

This table is not intended to be from 2014 to 2017, depending on engine 1042.505, and 1042.901 that we are exhaustive, but rather provides a guide power.1 After the Tier 4 standards were making in this final rule. Each of these for readers regarding entities likely fully in effect for all engine sizes, some elements is discussed in more detail in covered by these rules. This table lists boat builders informed EPA that there this final rule. the types of entities that we are aware were no certified Tier 4 engines The September 2019 proposed rule may be regulated by this action. Other available with suitable performance also included provisions related to in- types of entities not listed in the table characteristics for the vessels they use fuel sulfur standards that apply for could also be regulated. To determine needed to build, specifically for high- global marine fuel. We adopted those whether your activities are regulated by speed commercial vessels that rely on regulatory amendments to 40 CFR part this action, you should carefully engines with rated power between 600 80 in a separate rule (84 FR 69335, examine the applicability criteria in the and 1,400 kW that have high power , 2019). referenced regulations. You may direct density. The regulatory changes EPA is questions regarding the applicability of To address these concerns, EPA this action to the persons listed in the adopting in this final rule are largely the proposed, and through this rule is same as we proposed, with a few preceding FOR FURTHER INFORMATION adopting, provisions to provide CONTACT section. adjustments to address concerns raised additional lead time for implementing by commenters. Several commenters I. Summary the Tier 4 standards for engines used in also suggested that we broaden the certain high-speed vessels (84 FR 46909, EPA’s 2008 Final Rule for Control of scope of the rule to provide additional September 6, 2019). We are also relief—either for a longer period or for Emissions of Air Pollution from finalizing the proposed approaches for Locomotive Engines and Marine a wider range of vessels. We are streamlining certification requirements considering further rulemaking action to Compression-Ignition Engines Less than to facilitate or accelerate certification of 30 Liters per Cylinder adopted Tier 4 address these concerns, as described in Tier 4 marine engines with high power Section VII. emission standards for commercial density. These changes are reflected in marine diesel engines at or above 600 amendments to 40 CFR. 1042.145, EPA adopted emission standards for kilowatts (kW) (73 FR 37096, , marine diesel engines under Clean Air 2008). These standards, which were 1 For engines up to 1,000 kW, compliance could Act authority (42 U.S.C. 7401–7671q). expected to require the use of exhaust be delayed for up to nine months, but no later than The amendments in this rule are aftertreatment technology, phased in October 1, 2017. covered by that same authority.

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II. Background standards. However, engine whale-strike avoidance rules that are In 2008, EPA adopted Tier 3 and Tier manufacturers commented that a vessel- designed to protect migrating and 4 emission standards for new marine based approach would be unworkable calving right whales. In designated areas diesel engines with per-cylinder because they would then need to certify off the coast of Georgia, for example, displacement less than 30 liters (73 FR engines for a range of vessel types. vessels 65 feet and longer may not 37096, June 30, 2008). The Tier 3 Several commenters affirmed the 600 exceed an operating speed of 10 knots 3 standards were based on engine kW threshold as appropriate, and no from to April 30 each year. manufacturers’ capabilities to reduce commenters suggested a higher The whale-strike avoidance rules particulate matter (PM) and oxides of threshold. As a result, EPA finalized the increase the demand for pilot boats that 600 kW threshold without further are less than 65 feet long. This nitrogen (NOX) emissions with recalibration and other engine-based limiting the Tier 4 standards to additional constraint further technologies. The Tier 4 standards were particular types of commercial vessels. complicates the challenge to design In the intervening years, only one based on achieving emission reductions vessels with Tier 4 engines as the SCR engine manufacturer certified Tier 4 through the application of catalytic emission control system takes up a engines below 1,400 kW, and none of aftertreatment technology, including significant amount of already limited those had a power density greater than space. Here again, the use of Tier 4 selective catalytic reduction (SCR). 35 kW per liter total engine These Tier 4 standards currently apply engines will require significant boat displacement.2 Engine manufacturers changes and more time is needed to to commercial marine diesel engines pointed to the cost of product with rated power at or above 600 kW. resolve these challenges. development and certification rather These concerns led us to propose The Tier 3 standards phased in for than technological feasibility as the different engine sizes and power ratings provisions to allow additional lead time reason for delaying certification of Tier for implementing the Tier 4 standards from 2009 to 2014. The Tier 4 phase-in 4 engines. We also heard from schedule applied these more stringent for engines used in certain high-speed manufacturers of high-speed vessels that vessels, and to streamline Tier 4 standards starting in 2014 to engines at the lack of certified Tier 4 engines with or above 2,000 kW, which are most certification requirements. The proposal high power density was preventing identified several vessel and engine prevalent on large workboats that are them from building new vessels. Most of less sensitive to engine size and weight parameters that served as criteria to these concerns were related to lobster limit the additional lead time to concerns. The Tier 4 standards started boats and pilot boats. Boat builders also to apply at the start of model year 2017 qualifying vessels, rather than naming told us that there would be greater certain vessel types. for engines from 1,000 to 1,400 kW, and challenges when installing SCR- on October 1, 2017 for engines from 600 EPA benefitted from extensive input equipped engines in these high-speed from engine manufacturers, boat kW to 999 kW. The schedule for vessels. applying the Tier 4 standards was builders, and other stakeholders before When we adopted the Tier 4 publishing the proposed rule and in the intended to give engine manufacturers standards in 2008, most if not all lobster time to redesign and certify compliant comments submitted during the boats used engines below 600 kW. comment period. This information engines, and to give boat builders time Targeted lobster beds were typically to redesign their vessels to helped to clarify the constraints, located relatively close to shore. Lobster capabilities, processes, and concerns for accommodate the Tier 4 engines. boats navigating in these areas have size The 600 kW threshold for applying engine manufacturers, vessel and performance requirements that do manufacturers, and others affected by the Tier 4 standards was intended to not call for engines above 600 kW. Since avoid aftertreatment-based standards for the Tier 4 standards. 2008, however, it has become common Since the middle of 2019, four small vessels used for certain to navigate to lobster beds 40 miles or applications that were most likely to be additional engine manufacturers have farther from shore. The greater traveling certified Tier 4 engines with rated designed for high-speed operation with distance necessitates more cargo space very compact engine installations. Most power between 600 and 1,400 kW. This for a greater catch, and more speed to expands the list of Tier 4 engine models engines above 600 kW provide power complete a day’s work in a reasonable for various types of workboats and that are available to provide power for time. These factors caused a demand for a wider range of vessel types. However, larger passenger vessels. We were aware larger vessels and more engine power, that there would be some high-speed these new engine certifications and the which led boat builders to install comments received do not change EPA’s vessels with engines above 600 kW, but engines above 600 kW in lobster boats. expected that engine manufacturers concerns as stated in the proposed rule Prior to the Tier 4 standards taking that manufacturers of vessels for certain would be able to certify 600–1,400 kW effect in 2017, engines for these lobster engines and vessel manufacturers would high-speed commercial applications boats were subject to Tier 3 standards continue to face important challenges be able to make the necessary vessel and thus required no aftertreatment design changes during the nine-year associated with the availability of technology. As a result, the lobster-boat engines certified to the Tier 4 engine period between the final rule and the engines needed for high speed and implementation of the Tier 4 standards. standards. These vessels have ocean navigation could fit into fiberglass performance needs for achieving In response to the proposal preceding hulls with minimal changes to fiberglass the 2008 final rule, some commenters substantial propulsion power from a molds, or vessel design generally. light-weight engine. In short, these recommended that the Tier 4 standards A complicating factor for pilot boats apply to engines as small as 37 kW, vessel manufacturers have been unable is other federal, state, or local programs to find certified Tier 4 engines meeting because small land-based nonroad that impose speed restrictions on diesel engines were subject to similar their requirements for maximum power, vessels for certain vessel lengths. power density, and weight. See Section aftertreatment-based standards. Other Specifically, pilot boats that operate in commenters at that time advocated a certain coastal areas are subject to 3 The whale-strike avoidance rule was originally vessel-based approach, for example adopted by the National Marine Fisheries Service exempting engines installed on patrol 2 Tier 4 engines in 2017 and 2018 were limited on , 2008 (73 FR 60173). See 50 CFR boats and ferries from the Tier 4 to Caterpillar’s 32-liter and 57-liter engines. 224.105.

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V for a more detailed discussion of the control program for certain high-speed Phase 1, commenters requested some newly certified engines and the vessels and the associated engines with additional years to redesign vessels, and relationship to designing vessels with rated power between 600 and 1,400 kW. to find customers needing vessels those Tier 4 engines. These changes provide more time for during the relief period. Our intent in In response to these concerns, and engine manufacturers to certify the proposed rule was to allow boat consistent with the proposed rule, EPA additional engine models and for vessel builders to address the dilemma of not is adopting amendments to our marine manufacturers to design and build boats being able to fill orders for building new diesel engine program to provide with Tier 4 engines. We are also making boats because Tier 4 engines were not additional lead time to address these changes to our certification available. We did not intend, and do not concerns for certain high-speed vessels. requirements to facilitate certification, support, a longer time frame that would The new provisions allow engines especially related to demonstrating the allow boat builders to seek out installed on qualifying high-speed durability of emission controls. expanded opportunities based on vessels to continue to meet Tier 3 The regulatory changes in this final marketing the cost-saving advantages of standards during a relief period, which rule are largely the same as we Tier 3 compliant vessels for additional in turn will allow time for engine proposed, with a few adjustments in customers. The additional lead time manufacturers to certify additional response to concerns raised by associated with this proposed rule will engine models, and for vessel commenters. Several commenters also allow vessel manufacturers to manufacturers to implement design suggested that we broaden the scope of reconfigure vessels, create new tooling, changes to their vessels to accommodate the rule to provide additional relief— and start producing compliant vessels. new Tier 4 engines as they become either for a longer period or for a wider Commenters representing the available. range of vessels. We are considering lobstering industry described their The Tier 4 relief in this final rule further rulemaking action to address concerns that Tier 4 standards would be addresses the concerns that led to the these concerns, as noted in Section VII. more challenging and may never be proposed rule. In particular, absent appropriate for vessels meeting the A. Adjusted Implementation Dates relief, boat builders would be unable to Phase 2 criteria. The types of lobster build the types of high-speed vessels EPA is revising the Tier 4 boats that need engines with more than identified in the proposed rule in the implementation dates for certain types 600 kW have size and performance near term. This could result in boat of marine diesel engines for installation characteristics that are best met with purchasers sourcing new boats that are in qualifying high-speed vessels. The 15–18 liter engines. Larger engines, underpowered or prolonging the service additional time will allow vessel especially with SCR aftertreatment, are life of older boats, perhaps including manufacturers to redesign their vessels too large and heavy to provide a suitable replacement of original engines with to accommodate engines with the Tier 4 alternative power source for these Tier 3 or dirtier engines. As more Tier technology. Engine manufacturers have lobster boats. We are therefore adopting 4 engines become available, boat also indicated that the additional time the Phase 2 relief, as proposed, to allow builders will be able to design and build will allow them to certify more engine two additional years of lead time high-speed vessels that comply with models with high power density to the beyond the Phase 1 criteria, and a Tier 4 requirements, consistent with the Tier 4 standards. waiver process to address the possibility schedule we are specifying in this final The new lead time provisions have that Tier 4 engines will continue to be rule. Section IV evaluates the cost and two phases. The first phase sets model unavailable. environmental impact of the relief year 2022 as the Tier 4 implementation Vigor, Gladding-Hearn, and Ray Hunt provisions in this final rule. deadline for engines installed in high- Design requested that EPA clarify Note that the new provisions allowing speed vessels meeting a specific set of whether they would need to take certain additional lead time for EPA’s Tier 4 criteria. The second phase sets model steps before the end of the relief period marine diesel engine standards are year 2024 as the Tier 4 implementation for their vessels to qualify for the distinct from the international engine deadline for engines installed in a additional lead time. Implementation of emission standards that apply under narrower set of high-speed vessels that new emission standards is based on a Annex VI to the International are facing a different set of compliance combination of build dates for the Convention for the Prevention of challenges. engines and the vessels. For example, Pollution from Ships (MARPOL Annex We are applying the model year 2022 Phase 1 relief expires in 2021, which VI). Because the domestic and implementation date for Phase 1 relief, means that engines qualifying for relief international emission standards are as proposed. This will allow boat must have a date of manufacture in adopted under different legal builders time to redesign qualifying model year 2021 or earlier; i.e., authorities, this rule has no bearing on vessels to install certified Tier 4 crankshafts must be installed in those the international standards. It is also the engines. Available engines include engine blocks on or before December 31, case that U.S. vessels operating only currently certified models with total 2021.4 Similarly, vessels qualify for domestically are not subject to the displacements of 24 and 32 liters. relief only if their keels are laid on or standards adopted under MARPOL Engine manufacturers are also before December 31, 2021.5 Annex VI (see 40 CFR 1043.10(a)(2)). As continuing to develop additional Tier 4 At the same time, however, we are a result, the high-speed commercial engine models. concerned that boat builders may lay vessels that are the subject of this rule The second phase addresses the keels and order engines speculatively to will not be subject to emission different needs of manufacturers of allow them to sell Tier 3 vessels for standards under MARPOL Annex VI as fiberglass and other nonmetal vessels up several years beyond the relief period. long as they do not operate to 50 feet long that need additional time This practice would be contrary to the internationally. to redesign their boats to use 600–1,000 kW engines certified to Tier 4 standards. 4 See the prohibition in 40 CFR 1068.101(a)(1) III. Regulatory Changes in This Final Boat builders and boat owners and the definitions of ‘‘Date of manufacture’’ and Rule ‘‘Model year’’ in 40 CFR 1068.30. expressed a concern that the proposed 5 See the prohibition in 40 CFR 1068.101(a)(1) In this rule, EPA is adopting revisions additional lead time for both Phase 1 and paragraph (8) of the definition of ‘‘Model year’’ to the marine diesel engine emission and Phase 2 was not adequate. For in 40 CFR 1042.901.

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intent of the proposed relief. The implementation dates for the Tier 4 (to accommodate vessels with multiple program is intended to allow boat standards. propulsion engines). The combination builders to meet existing demand for Both phases of relief will be available of the limit on maximum power for each certain high-speed vessels where they to both inspected and uninspected engine with the limit on the total are currently unable to supply those commercial vessels. This is different nameplate propulsion power has the vessels. To prevent building up from our proposal, which would have practical effect of limiting relief to inventories of vessels during the relief limited both phases of relief provisions vessels with one or two propulsion period to circumvent the Tier 4 to vessels classified as uninspected engines. These criteria are intended to standards, we are adopting a vessels by the U.S. Coast Guard.6 Coast target relief from the Tier 4 standards for requirement to limit the relief to vessels Guard designates all commercial vessels the engines and vessels identified in the for which the boat builder has a written as either inspected or uninspected. proposed rule as needing additional contract from a buyer to purchase a Inspected vessels carry freight-for-hire lead time. vessel. The contract must be signed or any hazardous or dangerous cargo. The second phase of relief is limited before the end of the relief period. Towing and most passenger vessels are to engines that will be installed on also inspected. In contrast, uninspected vessels with a single propulsion engine B. Relief Criteria vessels include recreational vessels not with maximum power output up to Vessels qualify for relief if they meet engaged in trade, non-industrial fishing 1,000 kW and power density of at least certain criteria, as specified in the vessels, very small cargo vessels (less 35.0 kW per liter displacement, where proposal and updated for this final rule. than 15 gross tons), and miscellaneous the vessel is made with a nonmetal hull Both phases of relief will be available vessels such as pilot boats, patrol and and has a maximum waterline length of only to engines installed on high-speed other law-enforcement vessels, fire 50 feet. As noted in the proposed rule, vessels. High-speed vessels may boats, and research vessels, among we limited Phase 2 relief to fiberglass generally be characterized as planing others. The Passenger Vessel and other nonmetal hulls because of the vessels based on a hull design that Association, All American Marine, cost of creating new hull forms, and causes the vessel to rise up out of the Gladding-Hearn, and Savannah Bar because there is no option for a twin- water and experience lower Pilots indicated that there are examples engine installation for lobster boats or hydrodynamic drag (with a of inspected vessels that face the same similar vessels less than 50′. corresponding decrease in required issues related to engine availability and Gladding-Hearn and Ray Hunt Design propulsion power) when operating at design constraints that apply for requested that the regulation clearly high speed. This contrasts with uninspected vessels. For example, pilot state how to determine vessel length, displacement hulls, for which boats may be inspected or uninspected, and suggested referencing the U.S. Coast propulsion power continuously depending on the owner’s interest in Guard regulations at 46 CFR 175.400. increases with increasing vessel speed. expanding the use of a pilot boat to We agree with these comments and are Vessels with displacement hulls do not carrying some paying passengers. We adding a regulatory definition of experience the same design and agree that limiting relief to uninspected ‘‘waterline length’’ in 40 CFR 1042.901 installation challenges compared to vessels may unnecessarily exclude some that references the Coast Guard planing hulls. While this distinction is vessels for which relief was intended. regulation. This includes language straightforward, there is no generally We have therefore revised the final rule defining a worst-case condition accepted way to draw a clear line to remove this as a qualifying criterion. representing maximum vessel loading between the two types of vessels. This This change is necessary to accomplish and minimum water density. This is is illustrated by ‘‘semi-planing’’ vessels, the goal of the intended relief. We do intended to prevent a situation in which which have operating characteristics not think this change will significantly a vessel could exceed specified length that fall between planing and expand the range or number of vessels limits as a result of changing conditions. displacement vessels. We are adopting a that will qualify for relief, because other We proposed power density criteria of vessel speed criterion, as proposed, that engine and vessel qualifying criteria 35.0 and 40.0 kW per liter displacement is consistent with industry practice. We will continue to limit the number of for Phase 1 and Phase 2, respectively. are limiting relief to high-speed vessels qualifying vessels. The proposed criteria were intended to that have a maximum operating speed Vessels qualify for additional lead focus the relief on lightweight engines (in knots) at or above 3.0 · L1⁄2, where L time based on engine characteristics in needed for the affected high-speed is the vessel’s waterline length, in feet. addition to the vessel characteristics vessels. However, boat builders This includes an upward adjustment of described above. Qualifying engines expressed a concern that the proposed about 40 percent compared to published would need to be certified to EPA’s Tier value might reduce the number of definitions to draw a clearer line to 3 standards and have certain available Tier 3 engines to the point that identify high-speed vessels. As an characteristics related to power density the relief provisions would not allow example, 45-foot vessels would need to and maximum power output. them to build the vessels as have a maximum speed of at least 23 Specifically, the first phase of relief is contemplated in the proposed rule. knots to qualify for relief using the limited to propulsion engines with Vigor and Savannah Bar Pilots specified threshold. Vessels not meeting maximum power output up to 1,400 identified 27 kW/liter as an alternative the speed criterion either (1) are large kW, and power density of at least 27.0 qualifying threshold to allow a wider enough to not have the same sensitivity kW per liter displacement, rather than range of engines that could be used with to engine size and weight that should the proposed 35.0 kW per liter vessels qualifying for relief. Similarly, qualify them for relief from using Tier displacement. In addition, we are Gladding-Hearn and Ray Hunt Design 4 engines or (2) do not need engines limiting relief to engines that will be identified 24 kW/liter as an alternative with more than 600 kW. In particular, installed on vessels with a waterline qualifying threshold. The 24 kW/liter vessels with displacement hulls that are length up to 65 feet with total nameplate value was based on an engine model ′ less than 65 long generally do not have propulsion power at or below 2,800 kW with 57 liters total displacement, and engines with rated power above 600 kW. the 27 kW/liter value was based on an The vessel speed criterion applies 6 See Title 46, Chapter I, of the Code of Federal engine model with 38 liters total equally to both phases of adjusted Regulations. displacement. We agree that a wider

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range of power density values is These commenters suggesting lower conclude that space and packaging appropriate to accomplish the rule’s power density thresholds made clear rather than engine weight are the objectives and are therefore adjusting that weight considerations are a limiting factor in designing compliant the power density thresholds for the secondary engine parameter in high-speed vessels. This helps us to final rule. We selected the 27 kW/liter designing high-speed vessels. For understand the range of engine threshold because the 38-liter engine is example, a 38-liter engine at 27 kW/liter characteristics that will be suitable for a viable option for vessels qualifying for provides about 1,100 kW of propulsion these vessels when the Tier 4 standards Phase 1 relief, while the 57-liter engine power. An engine could achieve the apply. is much too large to be a viable option same power output with only 29 liters for these vessels. If we consider relief total displacement if the engine had Table 1 summarizes the provisions we for additional types of vessels in a power density at 35 kW/liter. The are adopting for additional lead time in future rulemaking, as described in incremental engine weight of adding this rule. This takes the form of a Section VII, we may reconsider the SCR to a 29-liter engine is probably less revised Tier 4 implementation schedule appropriate qualifying criteria for than the added weight of the larger for propulsion engines with high power engines installed on those vessels. engine without SCR. We therefore density.

TABLE 1—SUMMARY OF QUALIFYING CRITERIA FOR ADJUSTED TIER 4 IMPLEMENTATION DATES

Criteria 1 Phase 1 Phase 2

Vessel speed (knots) ...... >3.0 · (feet)1⁄2 ...... >3.0 · (feet)1⁄2. Engine power density ...... >27.0 kW/liter ...... >35.0 kW/liter. Engine power rating ...... ≤1,400 kW ...... ≤1,000 kW. Total vessel propulsion power ...... ≤2,800 kW ...... ≤1,000 kW. Vessel’s waterline length ...... ≤65 feet ...... ≤50 feet. Vessel hull construction ...... Any ...... nonmetal. Model years for continued use of Tier 3 En- through 2021 ...... through 2023. gines. 1 The specified engine criteria apply for the Tier 3 engines installed in vessels that qualify for relief.

Only those engines and vessels that replacement engines, or as engines for period, we expect boat builders to have meet the criteria we are finalizing in this export. In most cases, engine several available Tier 3 engine models. rule qualify for the revised Tier 4 manufacturers can resubmit information Several manufacturers indicated implementation dates. An engine from their earlier Tier 3 application for publicly that they intend to pursue installed in a nonqualifying vessel, or a certification to cover the new certification for Tier 3 commercial nonqualifying engine installed on any production. engines above 600 kW during the relief vessel, is subject to the prohibitions set Vigor, Gladding-Hearn, Ray Hunt period, including Caterpillar (18-liter out in 40 CFR 1068.101(a)(1) for new Design, Savannah Bar Pilots, and and 32-liter), MTU (22-liter and 27-liter) engines and vessels introduced into U.S. Columbia River Pilots asked EPA to and Scania (16-liter). We are aware of commerce, and would therefore be in allow installation of recreational Tier 3 additional engine manufacturers that violation. engines in commercial vessels during may also pursue Tier 3 certification for In addition to the above provisions, the relief period. We are not adjusting engines above 600 kW. several commenters suggested other our program to allow this. Since the D. Relief Through Waivers for adjustments to the proposed criteria to beginning of our emission control Qualifying Engines and Vessels broaden the scope of relief. Section V program for marine diesel engines, we includes our response to those have prohibited installation of EPA is adopting waiver provisions comments. recreational engines in commercial that start to apply in 2024 for vessels vessels. Recreational engines have a meeting the Phase 2 specifications C. Availability of Tier 3 Engines During much shorter useful life and therefore described in Table 1. These waiver Relief Period cannot provide reliable emission control provisions are intended to allow boat Engine manufacturers will need to in a commercial application. However, builders to continue building boats with certify engines above 600 kW to the Tier engine manufacturers can consider Tier 3 engines if engine manufacturers 3 commercial standards for installation qualifying their recreational marine have not yet certified suitable engines in newly constructed vessels that meet engines as light-commercial marine for those vessels. the qualifying criteria before vessel engines meeting a reduced useful life of Starting in 2024, manufacturers of manufacturers can utilize the additional 5,000 hours, as described in Section vessels meeting the Phase 2 lead time provided in this final rule. III.E.2. Except for that accommodation, qualifications described in Table 1 have Boat builders may need these Tier 3 we still find it important to disallow the option to request that EPA approve engines very soon after we finalize this installation of recreational engines in an exemption from the Tier 4 standards. rule. To do this, engine manufacturers commercial vessels. For manufacturers EPA will evaluate these requests based would generally need to restart using the new provision for a reduced on the availability of suitable certified production of engine configurations that useful life, we will be ready to work Tier 4 engines at the time of the request were already certified to the Tier 3 with engine manufacturers to apply the for the intended vessel design. EPA may commercial standards. Engine provisions of 40 CFR 1042.245(b) to approve requests covering multiple manufacturers may still be producing determine appropriate deterioration vessels, but any approval will apply these or substantially equivalent engine factors (see Section III.E.1). only for the number of vessels approved configurations as certified Tier 3 Based on input received from engine for relief. The waiver authority does not recreational engines, as exempt manufacturers after the comment expire, so EPA would be able to

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continue approving manufacturers’ future requests for relief; the approval which could accelerate the schedule for requests to install Tier 3 engines in process with the approval criteria certifying, and may lead manufacturers qualifying vessels until suitable certified adequately define the terms of the to decide to pursue Tier 4 certification Tier 4 engine models become available. waiver to avoid arbitrary decision- in light of the expected low sales The Passenger Vessel Association, making that would be disruptive for volumes for recovering the associated Vigor, Savannah Bar Pilots, and engine manufacturers and their product development costs. Columbia River Pilots suggested that the planning. To encourage development of waiver process should also apply for all E. Revised Certification Requirements additional engine options for high-speed vessels meeting the Phase 1 qualifying vessels, we will allow assigned Engine manufacturers told us that one criteria. As noted above, the waiver deterioration factors for engines with of the biggest factors delaying their provisions are intended to allow for power density above 30.0 kW/liter plans to certify Tier 4 engines in the 600 continued boat building in case there displacement. This applies through to 1,400 kW power range is the expected continue to be no suitable Tier 4 engines 2024 for 1,000–1,400 kW engines, and low sales volumes that make it harder for the targeted vessels. In 2022 and through model year 2026 for 600–1,000 to recover the investment needed to later, we expect boat builders to be able kW engines. These dates are set to apply to choose from several Tier 4 engine develop marine-specific calibrations for the first three years after the Tier 4 models between 20 and 40 liters total and perform the testing needed to standards start to apply on the adjusted displacement. It will take time to certify engines under 40 CFR part 1042. schedule, with the expectation that modify vessel designs to accommodate We understand engine manufacturers’ engine manufacturers could accumulate Tier 4 engine technologies, but it is concerns to recover their investment in information on the durability reasonable to expect the available Tier designing and certifying compliant characteristics of engines during those 4 engines to be suitable for the Phase 1 engines. The market for compliant three model years before needing to vessels. As mentioned above and engines is expected to grow as more develop family-specific deterioration described in Section VII, we are engines are needed internationally to factors. considering a separate rulemaking comply with the stringent emission proposal to address remaining questions standards adopted for NOX Emission The proposal specified that assigned about the availability of Tier 4 engines Control Areas under MARPOL Annex deterioration factors would be available for other types of high-speed vessels VI. Manufacturers are also expected to for two years for engines with power where there may not yet be suitable Tier redesign their engines to comply with density above 35.0 kW/liter. Engine 4 engines. the stringent marine diesel engine manufacturers’ comments requested that EMA stated that they do not support emission requirements for vessels we allow assigned deterioration factors extending Tier 4 relief for a longer operating on inland waterways in down to 30.0 kW/liter, and for a year period than we proposed. They Europe. The stringency of the European longer than we proposed. They specifically objected to specifying 2028 standards is similar to EPA’s Tier 4 suggested the changes to ensure that the as the year for applying the Tier 4 standards for NOX emissions and is amended provisions would together standards for Phase 2 relief based on more stringent for PM emissions. These create the appropriate reduction in engine manufacturers’ need to start standards will therefore contribute to development costs needed to achieve selling Tier 4 engines to recover their further development and installation of the objective of getting additional development costs. They also expressed advanced emission controls. engines certified to the Tier 4 standards. a concern that waiver provisions could To facilitate certification of engines We had selected the proposed be disruptive for product planning if the meeting the EPA Tier 4 standards, we thresholds for power density mostly to waiver approval would not be well are adopting revised engine certification prevent adverse competitive effects for defined or if it extended more than one requirements aimed at reducing engine manufacturers that had already certified year beyond the adjusted starting date of manufacturer compliance and to Tier 4 standards. We realize, the Tier 4 standards. We agree that certification costs for the affected however, that even those manufacturers adding several years of lead time would engines. These provisions are intended with certified engines can benefit from not be an effective way to support the to help accelerate the market entry of the new flexibility for certifying engine manufacturers’ development and additional Tier 4 marine engines, and additional engine families. certification programs for Tier 4 additional power ratings for engines We have reviewed available data to engines. The waiver process is already certified to Tier 4 standards. support default values for assigned preferable because it allows us to limit 1. Deterioration Factors deterioration factors. The deterioration relief in 2024 and later to cases in which factors are multiplicative values of 1.1 We are adopting a temporary there are no suitable engines certified to for NO and 1.4 for HC and CO, and an provision allowing engine X the Tier 4 standards. For example, additive value of 0.003 g/kW-hr for PM.7 manufacturers to certify specific engines engine manufacturers have not These are the same values specified for to Tier 4 standards based on assigned committed to certifying Tier 4 engines the proposed rule. Where an individual deterioration factors. Engine below 20 liters, and if that is still the engine manufacturer has existing data manufacturers rely on deterioration case and raised in a request for a waiver, available, such as from certified land- factors so they can test a new engine it may be appropriate not to limit a based versions of its marine engines, and adjust the test results waiver to a single year beyond the EPA would consider that information, mathematically to represent emission adjusted start date for the Tier 4 consistent with 40 CFR 1042.245(b), and levels at full useful life. Before this rule, standards. Conversely, if an engine may adjust the value of one or more manufacturer certifies an engine model the regulations for certifying marine default assigned deterioration factors that is suitable for powering vessels that diesel engines have allowed assigned accordingly. would otherwise meet the specified deterioration factors only for small- Phase 2 criteria, it would be appropriate volume engine manufacturers and post- 7 ‘‘Technical Analysis for Amendments Related to to deny the waiver request. The waiver manufacture marinizers. Assigned Marine Diesel Engine Emission Standards,’’ EPA provisions spell out the approval deterioration factors reduce the cost and memorandum from Cheryl Caffrey to Docket EPA– criteria needed for EPA to evaluate any time to certify to Tier 4 standards, HQ–OAR–2018–0638, 1, 2019.

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Engine manufacturers would need to aftertreatment technology will meet Tier life also for Tier 3 engines below 600 certify using family-specific 4 standards over the full regulatory kW. However, there are several such deterioration factors in the first model useful life. engine models currently certified to the year after the assigned deterioration Vigor and Savannah Bar Pilots Tier 3 standards over a useful life of factors are no longer available. supported the proposal to adopt a 10,000 hours with power density Manufacturers could determine new shorter useful life for engines with high between 45 and 55 kW/liter. As a result, deterioration factors from a power density as a way to increase the allowing engines less than 600 kW to conventional durability demonstration number of certified engines, but stated qualify for a shorter useful life would based on emission measurements before that 40 kW/liter would be the relax the stringency of standards that and after an extended period of service appropriate qualifying threshold. The manufacturers are already meeting. We accumulation in the laboratory. Truck and Engine Manufacturers are therefore not reducing the useful life The proposal included a request for Association also supported adopting a for engines below 600 kW. comment to allow at-sea emission shorter useful life, but stopped short of Manufacturers certifying engines to measurement in addition to lab-based making a recommendation on the Tier 4 standards using a reduced useful measurement to establish deterioration threshold that should apply. life can use assigned deterioration We are adopting a shorter regulatory factors. We contemplated this change in factors as described in Section III.E.1. In useful life for commercial engines above the context of engine manufacturers’ the proposal, we considered adjusting 600 kW with very high power density as interest in an alternative to the the values of the assigned deterioration conventional durability demonstration. proposed, except that the qualifying threshold is 45.0 kW/liter (see factors to account for the shorter useful In their comments, engine life. However, this final rule applies the manufacturers did not support changing § 1042.145). If manufacturers opt for the shorter useful life for qualifying engines, same assigned deterioration factors for the program to require deterioration the shorter useful life, because we factors based on emission measurement we consider those to be ‘‘light- commercial marine engines’’ (see expect those engines to experience the for engines installed in vessels. We will same amount of wear and degradation not adopt this as a requirement. With § 1042.901). The newly certified 24-liter engine from MAN meets the Tier 4 in 5,000 hours that other engines would respect to alternative durability experience in 10,000 hours. demonstration, we note that 40 CFR standards for a useful life of 10,000 1042.245(b) allows manufacturers to hours at a top rating of about 44 kW/ 3. Engine Duty Cycle for Certification determine deterioration factors using an liter. This engine serves as an important Testing engineering analysis based on emission benchmark for decision-making about measurements from highway or nonroad the limits of a 10,000 hour useful life in Engine manufacturers certify their engines that are similar to the marine an engine with very high power density. engines to the relevant emission engine being certified. First, the engine demonstrates the standards by measuring emissions at feasibility of meeting the Tier 4 test points on the applicable duty cycle 2. Reduced Regulatory Useful Life for standards for 10,000 hours. Second, it specified in 40 CFR 1042.505 and Light Commercial Engines demonstrates the feasibility limits of contained in Appendix II of 40 CFR part We proposed to reduce the useful life meeting Tier 4 standards over a useful 1042, and summing the weight-adjusted from 10,000 hours to 5,000 hours for life of 10,000 hours. MAN makes this emission results. As described in 40 commercial marine engines that have same engine with higher power ratings CFR 1042.505(b)(1) and (2), commercial power density above 50.0 kW/liter for recreational applications. We propulsion engines with fixed-pitch displacement. There are currently no therefore understand 44 kW/liter to be propellers are tested on the 4-mode E3 engines certified to Tier 4 standards the upper bound for meeting the Tier 4 duty cycle, and recreational engines are with power density above 44 kW per standards without a reduced useful life. tested on the 5-mode E5 duty cycle. liter. We acknowledge that increasing an Setting the threshold at 45.0 kW/liter While engine speed and power at the engine’s power rating comes from creates an incentive for other test modes are substantially the same for higher intake air pressures and greater manufacturers to pursue engine both duty cycles, the E5 duty cycle has fuel flow into the engine, which can certification for higher-output light- an extra test point at idle and also cause some engine and aftertreatment commercial ratings to create additional includes different weighting to calculate components to wear out sooner. Engines power alternatives for boat builders that overall emissions. These duty cycles are with lower power density are designed need to meet the most demanding intended to represent in-use operation for continuous operation for very long performance specifications. for the different applications: periods with minimal downtime. The reduced useful life for light- Commercial engines are expected to Engines with high power density are commercial engines also applies for Tier operate more time at 75% load and inherently lighter weight for a given 3 engines with maximum power above above while doing work (engaged in power rating and have a shorter time 600 kW, consistent with the proposed commercial activity) while recreational before scheduled rebuilding. Under our rule. This may increase the number of engines are expected to operate at high current regulations, the same regulatory engine models available during the load only occasionally. Recreational useful life applies for commercial relief period to the extent that engine engines have much less operation engines without regard to power manufacturers certify recreational overall, and they spend more time at density. However, the performance engine models for light-commercial idle and low engine loads. demands associated with high power applications. The Truck and Engine Table 2 reproduces the speed and density make it more difficult to Manufacturers Association commented power settings for the E3 and E5 duty demonstrate that engines with asking that we specify the shorter useful cycles.

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TABLE 2—SPEED AND POWER SETTINGS FOR THE ISO E3 AND E5 DUTY CYCLES

Percent of maximum test E3 weighting E5 weighting Mode No. Engine speed power factors factors (percent)

1 ...... Maximum test speed ...... 100 0.20 0.08 2 ...... 91% ...... 75 0.50 0.13 3 ...... 80% ...... 50 0.15 0.17 4 ...... 63% ...... 25 0.15 0.32 5 ...... Warm idle ...... 0 ...... 0.30

In response to EPA’s request for Clean Air Act marine diesel engine imposes no additional economic costs comment on duty cycles, engine standards and MARPOL Annex VI above those included in our 2008 manufacturers asked that EPA allow the Regulation 13 NOX limits, rulemaking. Instead, the additional lead option of using the E5 duty cycle to manufacturers may submit test data time is expected to result in cost certify commercial marine diesel from both duty cycles. The reported savings. We estimate cost reductions of engines with power density above 30.0 data would need to show that engines about $3.9 million, using a behavioral kW/liter. Engines above 30 kW/liter may meet emission standards over each duty modeling approach, or $4.2 million, be used in applications that are more cycle. using a full-cost pass-through approach like high-speed recreational boats (e.g., These changes to the program will not (2015$). These are the estimated cost planing boats) than low-speed require new testing for engines that are reductions from installing less commercial boats (e.g., river boats). We already certified to our Tier 3 or Tier 4 expensive Tier 3 engines in new vessels agree with engine manufacturers that standards, and certification based on the during the relief period (2020 through this change is appropriate. We are E3 duty cycle will continue to be valid 2023) and the associated operating cost therefore amending 40 CFR 1042.505 to for demonstrating compliance with reductions during the 13-year lifetime of allow manufacturers to certify engines standards for any engines certified to a those engines (2020 through 2035). above 30.0 kW/liter using the E5 duty useful life of 10,000 hours. With respect to emission inventory cycle. The reasons for this change are impacts, this rule changes the IV. Economic and Environmental the same as the reasons supporting the implementation date of the Tier 4 Impacts reduced useful life revision described standards for qualifying engines and above. These engines are likely to be The economic impact, emission vessels, which will delay the emission operated in a way more reflective of the inventory, and human health and and air quality benefits of those E5 duty cycle, particularly those welfare assessments performed for this standards. The estimated annual 9 installed on planing or semi-planing final rule use the same methodologies as increase in NOX and PM10 emissions vessels like lobster boats or pilot boats. were used for the proposal. The associated with the relief is about 108 The option to certify engines above 30.0 inventory and costs assessments rely on and 2.3 short tons, respectively, in 2020 kW/liter applies equally to Tier 3 and the data and methodologies developed and 2021, when both sets of engines are Tier 4 engines. to support our 2008 Final Rule. The affected, decreasing to 37 and 1 ton, As noted above, engines with power benefits assessment uses a simplified respectively, in 2022 and 2023, when density above 45.0 kW/liter may certify health benefits estimation method. The only those engine up to 1,000 kW with a reduced useful life of 5,000 results of these analyses are set out in engines are affected. The lifetime hours. These engines are inherently a technical memorandum prepared for inventory increase is estimated to be 8 limited to installation in vessels whose this rule, are summarized below, and about 3,764 tons of NOX and 79 tons of operation is shifted toward light-load are contained in Table 3 below. The PM10, assuming a 13-year lifetime. This operation. We are therefore requiring Technical memorandum also contains represents less than one-tenth of one engines to be certified using the E5 duty the Executive Order 13771, Reducing percent of the national annual emissions cycle if they have the shorter useful life. Regulation and Controlling Regulatory for these pollutants from commercial This may require development of engine Costs analysis prepared for this rule. Category 1 marine diesel engines (i.e., calibrations and control strategies Consistent with the economic impact engines below 7.0 liters per cylinder optimized to maintain low NOX analysis prepared for EPA’s 2008 displacement). emissions at idle and low-load rulemaking, the costs for this final rule The estimated impacts on emissions operation to ensure that in-use engines were estimated using both a behavioral and costs presented in Table 3 do not will control emissions as effectively as approach (in the intermediate-run after include the use of waivers. If engine the prototype engine tested for the adoption of new standards, manufacturers apply for and receive certification. producers pass only some compliance waivers post-2023, the estimated cost We will not require testing with both through to consumers), and a full-cost reductions and emission inventory E3 and E5 duty cycles for any engine pass-through approach (in the long-run impacts would increase and would families certified to EPA standards after the adoption of new standards, extend for a longer period of time (the under 40 CFR part 1042. However, to producers pass all compliance costs useful life of the engines produced simplify dual certification to both our through to consumers). This rule subject to the waiver).

8 See ‘‘Final Assessment Analysis: Amendments Revelt, EPA, Kenneth Davidson, PS, and Margaret 9 Consistent with the 2008 Rule, this inventory Related to Marine Diesel Engine Emission Zawacki, EE, to Docket EPA–HQ–OAR–2018–0638, analysis is for PM10. In the 2008 rule, PM2.5 was Standards,’’ EPA memorandum from Jean Marie , 2020. estimated at 97% of PM10.

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TABLE 3—ESTIMATED IMPACTS ON EMISSIONS AND COSTS

Affected NOX increase PM10 increase Compliance cost reduction Operating cost Year engines per year per year (2005$) * reduction per year (short tons) (short tons) (2005$)

2020 ...... 25 108.1 2.3 $455,667 to $531,177 ...... $36,000 2021 ...... 25 216.3 4.6 $455,913 to $531,689 ...... 72,000 2022 ...... 21 252.9 5.3 $301,749 to $359,562 ...... 102,240 2023 ...... 21 289.5 6.1 $301,686 to $359,499 ...... 132,480 2024 ...... 0 289.5 6.1 0...... 132,480

Lifetime Impacts (sum of 2020– 92 3,764 79.2 $3.2 to $3.5 million (2005$) 2035). ($3.9 to $4.2 million 2015$) * Costs were modeled in 2005$; lifetime impacts were converted in the final step of the analysis. Lower value of costs impacts estimated with a behavioral modeling approach, upper value estimated with a full-cost pass-through modeling approach. See ‘‘Assessment Analysis: Final Marine CI Tier 4 Rule,’’ EPA memorandum from Jean Marie Revelt, to Docket EPA–HQ–OAR–2018–0638 for details.

These forgone emission reductions are rule for additional discussion regarding • Allows boat builders to build associated with forgone improvements reduced form benefit per ton values.12 vessels qualifying for relief based on a less challenging requirement for in human health. Using reduced form V. Response to Comments health benefit per-ton values,10 we minimum power density. • estimate that the annual PM -related As described in Section II, the Specifies a lower power density to 2.5 proposed rule focused on providing forgone benefits do not exceed a high- qualify for a reduced useful life for relief for specific applications where certifying Tier 4 ‘‘light-commercial’’ end estimate of $3.0 million in any limited engine availability may be given year (2015$, 3% discount rate, engines. preventing boat builders from making • Adds an option to certify certain mortality effect estimate derived from certain types of high-speed vessels. The commercial engines with the E5 duty Lepeule et al., 2012). The total present proposed rule accordingly described cycle that previously was used only for value of the stream of forgone benefits regulatory amendments to allow certifying recreational engines. ranges from $9.8 million to $31 million. additional lead time only for certain Each of these minor modifications from Reduced form tools, by their nature, types of vessels, based on several the proposal is intended to ensure that are subject to uncertainty.11 In addition engine-related and vessel-related the relief provisions will accomplish the to the uncertainties present across the qualifying criteria. intended objective. entire emissions-to-impact modeling Section III describes the regulatory B. Commenters Wanting To Expand the pathway, it is important to note that the amendments for this final rule and addresses comments that relate directly Scope of Relief for High-Speed Vessels monetized benefit per ton estimates to those provisions. This Section V used here reflect the geographic patterns Several boat builders and boat addresses comments that apply more of the underlying emissions and air operators suggested that we broaden the generally, or that are outside the scope scope of the rule to provide additional quality modeling assumptions used to of the proposed rule. create the reduced form health benefit relief for a wider range of high-speed per ton values. Those assumptions do A. Commenters Generally Supporting vessels for which certified Tier 4 not necessarily reflect the conditions of the Rule engines were not available. This included general recommendations to the policy scenario in which they are The Truck and Engine Manufacturers allow relief for all high-speed vessels applied, which can lead to an over- or Association (EMA) and multiple state ′ organizations commented in support of longer than 65 and for all emergency- underestimate of benefits. In this rule, response vessels (or all publicly owned for example, the forgone benefits may be the proposed rule to provide Tier 4 relief for certain high-speed vessels. vessels). Some commenters also overstated in a location like Maine, described the need for relief for very because there will be some transport of Maritime Partners stated that they did not oppose the proposed rule. Each of specific applications, such as hovercraft emissions offshore or to areas external and catamarans with certain to the United States with different these comments also noted that EPA should not expand the relief beyond characteristics. Commenters also population and geographic what was proposed. advocated for allowing Phase 2 relief for characteristics. See the Final In line with these comments, we are vessels with metal hulls. Assessment Analysis prepared for this taking the approach of finalizing the To prepare the proposed rule, we did narrowly crafted relief from the an in-depth investigation of 10 PM2.5-related health benefits are estimated by proposed rule. Section III describes how information, perspectives, constraints, applying sector-specific (C1/C2 marine vessel we made several minor adjustments and prospects for developments related engine) benefit per ton values for NOX and directly- to the vessels and engines that we emitted PM2.5 using a source apportionment following the proposal. For example, the approach that is similar to what has been used in final rule— identified in the proposed rule. That led past EPA analyses. See: Wolfe, P., Davidson, K. • Includes vessels that are subject to us to carefully construct the qualifying Fulcher, C., Fann, N., Zawacki, M., Baker, K.R. Coast Guard inspections as qualifying criteria to allow relief where the need (2018). Monetized health benefits attributable to mobile source emission reductions across the for relief. was evident, and to disallow relief United States in 2025. STOTEN, 650 (2019) 2490– where we expected vessel 2498, September. 12 See ‘‘Final Assessment Analysis: Amendments manufacturers to have access to Tier 4 11 See EPA (2018). Technical Support Document: Related to Marine Diesel Engine Emission engines that were suitable for those Estimating the Benefit per Ton of Reducing PM2.5 Standards,’’ EPA memorandum from Jean Marie applications. We also used available Precursors from 17 Sectors. Office of Air and Revelt, EPS, Kenneth Davidson, PS, and Margaret Radiation, Office of Air Quality Planning and Zawacki, EE, to Docket EPA–HQ–OAR–2018–0638, information to determine the Standards, Research Triangle Park, February. August 12, 2020. appropriate duration of the relief period

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and to quantify the economic and standards did not involve unreasonable EPA notes that MAN has recently environmental impacts of providing costs. certified a 24-liter engine with high relief for qualifying vessels and engines. Regarding ALA’s comments on the power density for use in commercial The result was the proposed forgone environmental benefits, we boat applications, and that some arrangement of Phase 1 and Phase 2 quantified the estimated environmental additional lead time will be necessary qualifying criteria and the impacts of this rule using the methods for vessel builders to incorporate this corresponding schedule for delaying and data we used in our 2008 final rule; engine into their designs. We anticipate implementation of the Tier 4 standards. see Section IV. Allowing boat builders that further developments in certifying It is appropriate to focus this final to use Tier 4 engines for a longer phase- additional engine models to Tier 4 rule on solving the problems that were in period is expected to increase annual standards will make it possible to 13 the basis of the proposed rule. This will in NOx and PM10 emissions by about eventually realize most or all of the allow us to quickly finalize the relief for 108 and 2.3 short tons, respectively, in anticipated emission reductions the vessels targeted in the proposed 2020 and 2021, when both sets of anticipated in the 2008 rule. engines are affected, decreasing to 37 rule. Repeating the process of defining 2. Availability of Suitable Tier 4 Engines qualifying criteria and setting an and 1 ton, respectively, in 2022 and appropriately revised implementation 2023, when only engines 600–1,000 kW MAN objected to EPA acknowledging schedule for additional vessel types are affected. EPA talked with several widespread use of SCR in marine would require additional information boat builders who indicated that they applications, and then providing relief gathering and stakeholder outreach. simply cannot build boats at this time based on SCR not being available for marine engines. More specifically, MAN Commenters raised several concerns because certified Tier 4 engines in the argued that they and other about boat builders’ ability to find and necessary power range are unavailable. manufacturers have certified a range of install Tier 4 engines in certain types of This means that at least some part of the fleet of commercial boats with high Tier 4 engines that provide suitable vessels. As described in Section VII, we power options for the vessels EPA are not adopting relief in this rule to power density engines is prevented from turning over to cleaner Tier 4 identified as needing relief. MAN address these concerns, but we are emphasized that EPA’s relief provisions rather intending to further investigate engines, and that in at least some of these cases unregulated engines or Tier would prevent them from being able to the need additional relief. If we pursue sell their Tier 4 engines after investing additional relief for certain types of 1 or Tier 2 engines with higher emission levels will continue to operate in the substantially to certify their engines. vessels, this would be in the form of a EPA was not suggesting that SCR is new proposal that would consider the fleet. While it is not possible to know how many of these previous-tier vessels not an appropriate technology for comments we received in the context of marine engines. However, boat builders this rule. are not being replaced, it is reasonable to observe that replacing these boats need engine manufacturers to develop A similar assessment applies for the with new boats powered by Tier 3 properly sized compliant engines and comments describing a need for lobster engines is preferable to having the older certify them to Tier 4 standards before boats to be permanently excluded from vessels continue in the fleet. This is they do the necessary design work to Tier 4 requirements. We are adopting because the older vessels that need to be install those engines into their vessels. the Phase 2 relief consistent with the replaced are likely to have engines that In this rule, EPA is responding to the proposed rule to address what we know pre-date the Tier 3 standards: Tier 2 or, engine manufacturers’ delayed schedule about concerns for building boats with even more likely, pre-control engines. for certifying Tier 4 engines. Tier 4 engines. In any subsequent As such, these vessels are likely to have Specifically, before the Tier 4 standards proposal, we would also consider much higher emissions than vessels went into effect in 2017, engine revisiting the decision in this rule to powered by Tier 3 engines. Replacing manufacturers offered several marine require installation of Tier 4 engines in these vessels with vessels powered by diesel engine models for use in a wide lobster boats and other vessels meeting Tier 3 engines would reduce air variety of commercial boats. However, the Phase 2 criteria starting in 2024. emissions from the sector. when the Tier 4 standards went into C. Commenters Opposed to the Rule Regarding MAN’s comment on costs, effect, the market was characterized by the basis for the proposed changes to the the absence of certified engines. For Some commenters objected to program was to respond to the concerns whatever reason, engine manufacturers providing any relief from the Tier 4 of boat builders that they could not chose not to carry out the development standards. We address each of these build new boats due to the non- programs necessary to apply SCR or comments in the following sections availability of compliant engines. EPA other Tier 4 technology to these smaller based on the main arguments presented. was aware of the challenges of certifying engines and to certify those engines in 1. General Issues 600–1400 kW engines when we adopted large enough quantities to maintain this the 2008 rule, which was the basis for section of the marine diesel market. Our The American Lung Association allowing the greatest lead time for these decision to propose relief was (ALA) and an anonymous commenter engines. It is straightforward to accordingly based on the availability of stated that EPA should keep the Tier 4 conclude that boat builders have not certified engines, not on a judgment as standards as adopted to realize the been able to build the identified types to whether SCR is an inappropriate important environmental gains from of vessels because engine manufacturers technology for marine installations. improved emission control. They argued Engine manufacturers have now had not produced many of the same that manufacturers have had enough certified 20-liter, 24-liter and 32-liter engine models in a Tier 4 configuration time to produce compliant engines and engines to the Tier 4 standards (Table 4 that they had previously produced in a vessels, and that EPA should not revise identifies the Tier 4 engines that are Tier 3 configuration for use in these the rules to reduce costs to industry. available). Currently certified Tier 4 vessel types. MAN objected to EPA providing relief engines larger than 32-liter reach high based on the increased cost of Tier 4 13 Consistent with the 2008 Rule, this inventory power density only for ratings well engines in light of their understanding analysis is for PM10. In the 2008 rule, PM2.5 was above 1,400 kW. We anticipate that that certifying engines to Tier 4 estimated at 97% of PM10. engine manufacturers will certify

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additional engine models with different with 24-liter engines. Previous designs changes to be able to build a boat that displacements and power ratings in the for this type of vessel included a pair of meets performance specifications with years ahead. The 65′ pilot boat that 32-liter engines, which may give an the Tier 4 engine configuration. In Savannah Bar Pilots want to build appropriate balance of power, weight, recognition that additional certified Tier illustrates the need for relief. Vigor, the and durability, but 32-liter engines with 4 engines are now becoming available boat builder for Savannah Bar Pilots, after treatment and associated hardware for consideration by boat builders, EPA commented that this boat would not would require the boat builder to is providing only temporary, limited meet performance specifications related substantially redesign the vessel. Boat relief from the Tier 4 standards. to speed and annual operating hours builders need time to make those

TABLE 4—CURRENTLY CERTIFIED TIER 4 ENGINES BELOW 1400 KW

Maximum Manufacturer Displacement power Power density (liters) (kW) (kW/liter)

Yanmar ...... 20.4 670–749 33–37 MAN ...... 24.2L 746–1,066 31–44 Baudouin ...... 32.1L 900–1,215 28–38 Caterpillar ...... 32L 746–1,082 23–35 Mitsubishi ...... 49L 940 19 Caterpillar ...... 57.6L 1,000–1,772 17–31

3. Vessel Redesign for Lobster Boats 4 engines, may choose instead to build D. River Towing MAN described their 24-liter engine a boat with a smaller engine certified to The American Waterways Operators as being a suitable option for lobster Tier 3 standards. Other boat owners may and some of its members commented on boats if boat builders make a reasonable choose to keep their older boats running the proposed rule to suggest that river effort to redesign vessels to account for instead of buying new boats with Tier pushboats also needed additional time the additional size and heat rejection 4 engines, and possibly repowering with to comply with Tier 4 standards. associated with exhaust after treatment. previous tier engines when needed.14 Commenters mainly cited reliability We have learned that a full-size The purpose of the relief provisions we concerns for Tier 4 engines operating in lobster boat is normally 45–50′ long are adopting in this rule is to avoid a river environment (i.e., operating at with a single 16–18 liter engine that has these unintended consequences by high load when pushing against the a power rating of 700–750 kW. These giving engine manufacturers more time river current, low load when operating Tier 4 engines with exhaust to address the power needs for high- with the river current), the challenge of aftertreatment will require boat builders speed vessels while allowing boat redesigning this type of vessel to use to substantially redesign their vessels builders to continue to build boats with Tier 4 engines, the additional just to make room for a larger engine Tier 3 engines in the interim. To the complexity of operating and package. That would be a considerable extent these unintended consequences maintaining Tier 4 engines with challenge with 16–18 liter engines. Boat would play out in the marketplace in advanced electronic controls and builders would not be able to install the the absence of this rulemaking, there aftertreatment, the limited available Tier larger 24-liter engine with exhaust could be associated cost and emission 4 engine models, and access to diesel aftertreatment in these vessels without impacts in the absence of this exhaust fluid on inland rivers. They also extensive structural changes. The vessel rulemaking. However, these costs are expressed concerns about the aggregate redesign would also need to address unclear and EPA’s impacts assessment costs of purchasing, installing, and concerns about higher engine room described in Section IV only models using Tier 4 engines. temperatures, water reversion that could costs and disbenefits directly related to These comments contrasted with damage SCR catalysts, and storing this rule. those from Maritime Partners, who said Diesel Exhaust Fluid (DEF), among that engine manufacturers and multiple other things. Boat builders may be able 4. DEF Availability boat builders are actively engaged with to redesign their vessels to address all substantial investments to design and MAN commented that DEF is widely these concerns, but they need to have build river pushboats with Tier 4 available and EPA should therefore not clear specifications from the engine engines. extend compliance deadlines based on manufacturers before they undertake We did not propose to make any limited access to DEF. such redesign and, in any event, are not changes to the Tier 4 standards or likely to be able to successfully As described above, the proposed implementation schedule for river accomplish this for building boats in relief is based on the limited availability pushboats and are therefore not in a 2023 or earlier. They may even need of certified Tier 4 engines suitable for position to adopt relief provisions for more lead time than we are adopting in use in certain high-speed vessels. Some those vessels in this rule. We may take this rule. This is the basis to allow for commenters advocated for relief from further action to address these concerns the possibility that boat builders will Tier 4 emission standards based on in any follow-on action we consider as not be able to install Tier 4 engines in limited access to DEF, but DEF supply described in Section VII. 2024 and later model years by providing and infrastructure were not considered E. Replacement Engines the waiver provisions discussed in in the proposed rule. These issues are Section III.D. therefore outside the scope of this rule. Gladding-Hearn Shipbuilding and the It should be noted that some lobster Passenger Vessel Association requested boat builders (and boat purchasers), 14 See EPA–HQ–OAR–2018–0638–0054 and EPA– that we revise the regulation to allow faced with a requirement to install Tier HQ–OAR–2018–0638–0055. vessel owners to replace old engines

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under the replacement engine engine must be considered, and then a The National Association of Clean Air exemption under 40 CFR 1068.240, but Tier 1 engine. Because new replacement Agencies (NACAA) encouraged us to keep the old engine as a spare to engines prolong the life of older vessels prioritize and take action to establish minimize downtime in anticipation of and delay the turnover of the fleet to more stringent marine emission an emergency engine failure. The cleaner engines, this requirement is an standards for engines below 600 kW, commenters stated that such an engine important means of making incremental and to consider adopting emission failure without a spare engine could be improvements in emission controls from standards that harmonize with more economically devastating. the marine fleet. stringent standards that apply outside These commenters are describing In the context of swing engines, if an the United States where possible. Our ‘‘swing’’ engines. EPA clarified our engine in the fleet experiences engine 2008 final rule described the challenges approach to swing engines in our 2008 failure, the owner would remove the associated with applying Tier 4 rulemaking in response to the concerns failed engine, install the swing engine, standards to commercial marine engines of commenters on that rule (73 FR and use the exemption for new below 600 kW and the boats that use 37158, June 30, 2008). Some ship replacement engines to become the next them and, to our knowledge, these owners said that they currently use swing engine. This would require challenges have not been resolved. EPA swing engines in their regular returning the failed engine to the engine does not have plans to revisit those operations and that the application of manufacturer as a core exchange. The emission standards at this time; our replacement engine provisions engine manufacturer may restore the however, we will continue to evaluate would prevent them from continuing failed engine to a working condition and whether or when it is appropriate to this practice. In our 2008 rule, we resell it, subject to the conditions that apply more stringent emission standards clarified that we allow swing engines as apply under 40 CFR 1068.240. The for engines below 600 kW. Similarly, we a maintenance practice when the swing regulation does not allow the owner to will continue to evaluate whether or engines are additional engines retain ownership of the original engine when it is appropriate to adopt more purchased at the time the vessel is after it has been replaced with an stringent emission standards that would constructed and are clearly intended to exempted engine under 40 CFR allow engine manufacturers to make a be part of an engine maintenance 1068.240, even if it could otherwise be single low-emission engine that strategy for that vessel. In a qualifying rebuilt for use as a swing engine. simultaneously complies with emission swing engine fleet, when one of the Note that if the owner is replacing the standards adopted by multiple vessel’s engines is due for rebuild, it is old engine with a used engine, rather regulating agencies. removed from the vessel and replaced than a new engine, the only regulatory EMA commented that dedicated with an engine from the swing engine constraint is that the replacement direct-drive fire pumps should be group. The removed engine is rebuilt engine may not be certified to a lesser permanently exempted from Tier 4 and then becomes the next swing standards because their use is limited to engine. The swing engine must be the tier of standards than the engine it is replacing (see 40 CFR 1068.120). emergency operations (plus limited same emission tier as the original engine maintenance and testing). EMA on the vessel, and it is subject to EPA’s However, that used engine may be subject to EPA’s marine diesel engine provided no detailed justification for marine diesel engine remanufacturing not meeting Tier 4 standards and requirements when it is rebuilt. Note remanufacture program when it is rebuilt (see 40 CFR part 1042, subpart I). provided no information that would that if a swing engine is replaced with help us assess the economic or a new engine, both engines are subject These comments on replacement environmental impacts of such a change to the engine replacement provisions in engines are outside the scope of the to the regulation. This comment is 40 CFR 1042.615 and 1068.240. proposed rule. However, we want to The commenters are requesting that take the opportunity to emphasize that outside the scope of this rulemaking. they be allowed to designate an engine EPA’s swing engine program is well We are not taking action in this final as a swing engine at the time the engine established and that the Agency has no rule to address the request. is replaced, by retaining the rebuilt plans to revise those regulatory NACAA recommended that we original engine, thus exempting the provisions. provide a more geographically resolved estimation of the lost emission engine from the provisions for new F. Other Comments replacement engines. We disagree with reductions, at least on the regional level. this request, as it undermines the State groups submitted comments We have concluded that it is not purpose of the replacement engine stating that EPA would need to adopt possible to provide a more provisions in our marine diesel engine alternative control measures to make up geographically resolved estimation of program. Currently, if an owner installs for forgone emission reductions that are the forgone emission reductions without a new replacement engine, the new already in state plans for meeting air knowing the precise location of the engine must meet the most stringent tier quality standards. We originally boats that take advantage of the of standards feasible for installation on adopted emission standards for marine additional lead time. As explained in a boat.15 Thus, a new replacement diesel engines to comply with our Clean the economic and environmental engine for a vessel built in 1995 would Air Act authority to set emission impacts analysis prepared for this rule, need to meet at least Tier 3, unless it can standards requiring the greatest we estimate that if all the annual be established that a Tier 3 engine achievable degree of emission control. emissions for the 600–1,000 kW engines cannot be used in the vessel because of The relief provisions we are adopting are attributed to Maine, the forgone the physical or performance needs of are based on this same assessment of emissions from Tier 4 relief would the vessel, at which point a Tier 2 what is feasible. We will consider every amount to about 0.4 percent and 0.1 opportunity to require emission percent of those state-wide NOX and 15 As stated in 40 CFR 1042.615, EPA has reductions from marine diesel engines PM10 emissions, respectively. Similarly, determined that engines certified to Tier 4 and other sectors, but emissions if all the annual emissions for 600–1,000 standards do not have the appropriate physical or kW engines are attributed to Georgia, performance characteristics to replace uncertified accounting does not change our engines or engines certified to emission standards assessment of what boat builders can do the forgone emissions from Tier 4 relief that are less stringent than the Tier 4 standards. to comply with the Tier 4 standards. would amount to about 0.13 percent and

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0.03 percent of those state-wide NOX million. The estimated cost savings available engines, both to determine 16 and PM10 emissions, respectively. would increase by $3.3 million, using a which vessels warrant relief and to behavioral modeling approach, or $3.6 VI. Regulatory Alternatives determine how long the relief period million, using a full-cost, pass-through should be. The proposed rule described the basis approach (2015$), over the estimated for pursuing additional lead time for Finally, we will also consider whether cost savings associated with the final further changes to certification meeting Tier 4 requirements for certain adopted program. engines and vessels where it was requirements are necessary to encourage apparent that there was no feasible path VII. Plans for Further Action greater availability of relevant engines. for compliance. The relief provisions in In response to our proposal, we This is of particular concern for engines this rule are narrowly crafted to address received several comments from with total displacement below 20 liters, the concerns communicated by boat industry stakeholders who indicated where the absence of Tier 4 certified builders leading up to the proposed that relief is also needed for other vessel engines is most pronounced. In our rule. These provisions include a waiver types. These include catamarans, assessment, we will also consider the process for vessels meeting the Phase 2 hovercraft, some types of emergency progress that engine manufacturers have criteria as described in Section III.B for response boats, and push boats. made toward certifying marine diesel 2024 and beyond. In the proposal, we Specifically, hovercraft have design engines to the IMO Tier III or EU Stage also requested comment on an specifications for lifting the vessel up V standards. Our assessment may also alternative approach of adopting a new out of the water that require engines to include consideration of adjusting NOX, Tier 4 start date of 2028 for vessels fall into a narrow range of power, size, HC, CO, or PM standards, revising the meeting the Phase 2 criteria. and weight. Similarly, catamarans with durability testing provisions for As described in Section V, adding hydrofoils need to use light-weight certification, and expanding the scope several years of lead time would not be components and materials to achieve of Tier 4 to apply to engines below 600 an effective way to support the engine the lift necessary to operate properly. kW. manufacturers’ development and Also, fire boats and other emergency In any future action, we would also certification programs for Tier 4 response vessels sometimes need to consider whether to make further engines. The waiver process is achieve very high speeds, which in turn regulatory changes to address the preferable because it allows us to limit requires very compact and light-weight request for a long-term and sustainable relief in 2024 and later to cases in which engines with very high power output. set of requirements for lobster boats and there are no suitable engines certified to For these and similar applications, boat similarly affected vessels. the Tier 4 standards. If an engine builders indicated that they may not be manufacturer certifies an engine model able to move ahead with new As described in Section V, some that is suitable for powering vessels that construction with available Tier 4 operators of river boats continue to be would otherwise meet the specified engines. concerned about complying with Tier 4 Phase 2 criteria, it would be appropriate The issues raised by these requirements. These concerns are very to deny the waiver request. commenters are complex. It will take different than those that apply to We have calculated the emission some time to carefully consider an installing Tier 4 engines in high-speed impacts associated with an alternative appropriate policy direction and, if vessels. Rather, boat builders and 2028 Tier 4 start date for vessels necessary, prepare a new proposal with operators will need time to work out meeting the Phase 2 criteria.17 Adopting specific additional relief provisions. design, installation, and operational this regulatory alternative would have Rather than delay the relief as described issues with newly configured engines in increased the estimated total forgone in the proposed rule, we will consider a river environment. We will continue inventory benefits of the proposal by the issues raised by these stakeholders to monitor progress toward compliance about 1,760 additional short tons of separately. As a result, we will continue for river pushboats that are subject to NOX and 37 additional short tons of to consider whether and how to Tier 4 requirements. We will also learn, PM10 above the estimated inventory formulate Tier 4 relief provisions for along with the industry, how Tier 4 increases associated with the final these vessels. We will be reaching out compliance requirements are affecting program adopted in this final rule. to stakeholders to better understand the ability of operators to safely and Using reduced form health benefit per their concerns and determine whether effectively deliver products on the ton values, we estimate that the annual we can develop a set of narrow inland waterway system. PM2.5-related forgone benefits for this qualifying criteria to allow relief where regulatory alternative could be up to a it is needed while continuing to require VIII. Statutory and Executive Order high-end estimate of $4.4 million in any installation of Tier 4 engines where Reviews relief is not needed. The appropriate given year (2015$, 3% discount rate, Additional information about these measure for evaluating the need for mortality effect estimate derived from statutes and Executive Orders can be Lepeule et al., 2012). The total present relief is whether certified Tier 4 engines found at http://www2.epa.gov/laws- value of the stream of forgone benefits will be available with the appropriate regulations/laws-and-executive-orders. ranges from $13.5 million to $44.6 power characteristics to meet performance specifications, after A. Executive Order 12866: Regulatory 16 See ‘‘Final Assessment Analysis: Amendments accounting for reasonable measures to Planning and Review and Executive Related to Marine Diesel Engine Emission redesign vessels to account for engines Order 13563: Improving Regulation and Standards,’’ EPA memorandum from Jean Marie with exhaust aftertreatment. Revelt, EPA, Kenneth Davidson, PS, and Margaret Regulatory Review Zawacki, EE, to Docket EPA–HQ–OAR–2018–0638, In this future assessment, we will August 12, 2020. need to take into consideration This is a significant regulatory action 17 See ‘‘Final Assessment Analysis: Amendments currently certified engines and the that was submitted to the Office of Related to Marine Diesel Engine Emission efforts that engine manufacturers intend Management and Budget (OMB) for Standards,’’ EPA memorandum from Jean Marie review. Any changes made in response Revelt, EPA, Kenneth Davidson, PS, and Margaret to make to certify relevant engines in Zawacki, EE, to Docket EPA–HQ–OAR–2018–0638, the foreseeable future. We will need to to OMB recommendations have been August 12, 2020. carefully assess the expected range of documented in the docket.

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B. Executive Order 13771: Reducing substantial number of small entities have a significant adverse effect on the Regulations and Controlling Regulatory under the RFA. In making this supply, distribution, or use of energy. Costs determination, the impact of concern is This action provides relief from current This action is considered an any significant adverse economic emission standards for a small number Executive Order 13771 deregulatory impact on small entities. An agency may of vessels and streamlines the process action. Details on the estimated cost certify that a rule will not have a for certifying engines. None of these savings of this final rule can be found significant economic impact on a changes are expected to significantly in EPA’s analysis of the projected costs substantial number of small entities if affect energy supply, distribution, or and benefits associated with this action. the rule relieves regulatory burden, has use. Section IV describes how we expect no net burden, or otherwise has a this rule to have a small overall C. Paperwork Reduction Act (PRA) positive economic effect on the small environmental impact. entities subject to the rule. This rule is The information collection activities J. National Technology Transfer and expected to provide regulatory in this rule have been submitted for Advancement Act (NTTAA) approval to the Office of Management flexibility to small owners and operators and Budget (OMB) under the PRA. The of U.S. vessels. We have therefore This rulemaking does not involve Information Collection Request (ICR) concluded that this action will have no technical standards. document that the EPA prepared has net regulatory burden for any directly K. Executive Order 12898: Federal been assigned EPA ICR number 2602.02. regulated small entities. Actions To Address Environmental You can find a copy of the ICR in the E. Unfunded Mandates Reform Act Justice in Minority Populations, and docket for this rule, and it is briefly (UMRA) Low-Income Populations summarized here. The information This action does not contain any This action does not have collection requirements are not unfunded mandate as described in disproportionately high and adverse enforceable until OMB approves them. UMRA, 2 U.S.C. 1531–1538, and does human health or environmental effects OMB has previously approved the not significantly or uniquely affect small on minority populations, low-income information collection activities related governments. The action imposes no populations or indigenous peoples, as to marine diesel engine emission enforceable duty on any state, local, or specified in Executive Order 12898 (59 standards in 40 CFR part 1042 under tribal governments or the private sector. FR 7629, , 1994). Section IV OMB control number 2060–0287. describes how this action will have a Information collection is limited to F. Executive Order 13132: Federalism very small impact on all populations. manufacturers of qualifying high-speed This action does not have federalism vessels requesting a waiver from the implications. It will not have substantial L. Congressional Review Act (CRA) Tier 4 standards after the standards direct effects on the states, on the This action is subject to the CRA, and restart in model year 2024. We are relationship between the national EPA will submit a rule report to each adopting this as a precaution, in case government and the states, or on the House of the Congress and to the engine certification and further distribution of power and Comptroller General of the United technology development for installing responsibilities among the various States. This action is not a ‘‘major rule’’ Tier 4 engines does not allow for levels of government. as defined by 5 U.S.C. 804(2). complying with standards in 2024. We will protect confidential business G. Executive Order 13175: Consultation List of Subjects in 40 CFR Part 1042 information as described in 40 CFR part and Coordination With Indian Tribal Environmental protection, 2. Governments Administrative practice and procedure, Respondents/affected entities: This action does not have tribal Air pollution control, Confidential Manufacturers of high-speed vessels. implications as specified in Executive business information, Imports, Labeling, Respondent’s obligation to respond: Order 13175. This rule will be Penalties, Reporting and recordkeeping Response is required to get EPA’s implemented at the Federal level and requirements, Vessels, Warranties. approval for a waiver from Tier 4 affects owners and operators of U.S. Andrew Wheeler, standards. vessels. Thus, Executive Order 13175 Estimated number of respondents: 0. does not apply to this action. Administrator. Frequency of response: There are no For the reasons set forth above, EPA recurring responses. H. Executive Order 13045: Protection of amends 40 CFR part 1042 as follows: Total estimated burden: 0 hours (per Children From Environmental Health year). Burden is defined at 5 CFR Risks and Safety Risks PART 1042—CONTROL OF EMISSIONS 1320.3(b). This action is not subject to Executive FROM NEW AND IN-USE MARINE Total estimated cost: $0 per year, Order 13045 because it is not COMPRESSION-IGNITION ENGINES including $0 per year in annualized economically significant as defined in AND VESSELS capital or operation & maintenance Executive Order 12866, and because the ■ 1. The authority citation for part 1042 costs. EPA does not believe the environmental continues to read as follows: An agency may not conduct or health or safety risks addressed by this sponsor, and a person is not required to action present a disproportionate risk to Authority: 42 U.S.C. 7401–7671q. respond to, a collection of information children. This action’s health and risk ■ 2. Section 1042.145 is amended by unless it displays a currently valid OMB assessments are described in Section IV. adding paragraphs (k) through (o) to control number. The OMB control read as follows: numbers for the EPA’s regulations in 40 I. Executive Order 13211: Actions CFR are listed in 40 CFR part 9. Concerning Regulations That § 1042.145 Interim provisions. Significantly Affect Energy Supply, * * * * * D. Regulatory Flexibility Act (RFA) Distribution, or Use (k) Adjusted implementation dates for I certify that this action will not have This action is not a ‘‘significant Tier 4 standards. Engines and vessels a significant economic impact on a energy action’’ because it is not likely to may qualify for delaying the Tier 4

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standards specified in § 1042.101 as (1) The subject vessels and engines and 1.4 for HC and CO, and an additive follows: must meet the qualifications of value of 0.003 g/kW-hr for PM, unless (1) The delay is limited to model year paragraph (k)(2) of this section. we approve your request to use different 2021 and earlier engines and vessels (2) Vessel manufacturers must send a values. We will approve your proposed that meet all the following written request for the exemption to the values if we determine based on data characteristics: Designated Compliance Officer. The from similar engines and supporting (i) Category 1 propulsion engines with request must describe efforts taken to rationale you submit with your request specific power density above 27.0 kW/ identify available engines certified to that they better represent your engines. liter, up to maximum engine power of the Tier 4 standards, describe design (o) Useful life for light-commercial 1,400 kW. efforts for installing engines in the engines. You may certify commercial (ii) Vessels have total propulsion subject vessels, identify the number of Category 1 engines at or above 600 kW power at or below 2,800 kW. vessels needing exempt engines, with power density above 45.00 kW/ (iii) Vessel waterline length is at or demonstrate that the vessel cannot meet liter to the exhaust emission standards below 65 feet. essential performance specifications of this part over a full useful life of 10 (iv) Vessels have a maximum speed using available Tier 4 engines, and state years or 5,000 hours of operation (in knots) at or above 3.0 · L1/2, where L that engine and vessel manufacturers instead of the useful-life values is the vessel’s waterline length, in feet. will meet all the terms and conditions specified in § 1042.101(e). Engines (2) The delay also applies through that apply. We may approve an certified to this shorter useful life must model year 2023 for engines and vessels exemption from the Tier 4 standards be in their own engine family. that meet all the following based on the submitted information. ■ 3. Section 1042.505 is amended by characteristics: (3) Engine manufacturers may ship revising paragraphs (b) introductory text (i) Category 1 propulsion engines with exempt engines under this paragraph and (b)(2) to read as follows: specific power density above 35.0 kW/ (m) only after receiving a written liter, up to maximum engine power of request from a vessel manufacturer who § 1042.505 Testing engines using discrete- mode or ramped-modal duty cycles. 1,000 kW. has received our written approval to (ii) Vessels have total propulsion build a specific number of vessels. The * * * * * power at or below 1,000 kW. prohibitions in 40 CFR 1068.101(a)(1) (b) Measure emissions by testing the (iii) Vessel waterline length is at or do not apply to a new engine that is engine on a dynamometer with the below 50 feet. subject to Tier 4 standards, subject to following duty cycles (as specified) to (iv) Vessels have a maximum speed the following conditions: determine whether it meets the (in knots) at or above 3.0 · L1/2, where L (i) The engine meets the appropriate emission standards in § 1042.101 or is the vessel’s waterline length, in feet. Tier 3 emission standards in § 1042.101 § 1042.104: (v) Vessels have fiberglass or other consistent with the provisions specified * * * * * nonmetal hulls. in 40 CFR 1068.265. (2) Duty cycle for engines with high (ii) The engine is installed on a vessel (3) Vessel manufacturers must have a power density. Except as specified in consistent with the conditions of this contract or purchase agreement signed paragraph (b)(3) of this section, use the paragraph (m). before the end of the relief period for 5-mode duty cycle or the corresponding (iii) The engine meets the labeling ramped-modal cycle described in each vessel produced under this requirements in § 1042.135, with the paragraph (k). paragraph (b) of Appendix II of this part following statement instead of the for light-commercial engines and (4) Affected engines must instead be compliance statement in certified to the appropriate Tier 3 recreational marine engines with § 1042.135(c)(10): maximum engine power at or above 37 emission standards specified in THIS MARINE ENGINE DOES NOT § 1042.101. Engine manufacturers may kW. You may also use this duty cycle COMPLY WITH CURRENT U.S. EPA for other commercial engines instead of include engine configurations with EMISSION STANDARDS UNDER 40 maximum engine power below 600 kW the duty cycle specified in paragraph CFR 1042.145(m). ANY OTHER (b)(1) of this section if the power density in the same engine family even if the INSTALLATION OR USE OF THIS power density is below the value for every configuration in an engine ENGINE MAY BE A VIOLATION OF family is above 30.0 kW/liter. specified in paragraph (k)(1) or (2) of FEDERAL LAW SUBJECT TO CIVIL this section. PENALTY. * * * * * (5) If you introduce an engine into (n) Assigned deterioration factors. ■ 4. Section 1042.901 is amended by U.S. commerce under this section, you Engine manufacturers may use assigned adding definitions in alphabetical order must meet the labeling requirements in deterioration factors for certifying Tier 4 for ‘‘Light-commercial marine engine’’ § 1042.135, but add the following engines with maximum power up to and ‘‘Waterline length’’ to read as statement instead of the compliance 1,400 kW, as follows: follows: statement in § 1042.135(c)(10): (1) For engine families that have at § 1042.901 Definitions. THIS MARINE ENGINE COMPLIES least one configuration with maximum WITH U.S. EPA TIER 3 EMISSION engine power at or below 1,400 kW and * * * * * STANDARDS UNDER 40 CFR power density above 30.0 kW/liter, you Light-commercial marine engine 1042.145(k). ANY OTHER may use assigned deterioration factors means a Category 1 propulsion marine INSTALLATION OR USE OF THIS through model year 2024. engine at or above 600 kW with power ENGINE MAY BE A VIOLATION OF (2) For engine families that have at density above 45.0 kW/liter that is FEDERAL LAW SUBJECT TO CIVIL least one configuration with maximum certified with a shorter useful life based PENALTY. engine power at or below 1,000 kW and on its high power density. (l) [Reserved] power density above 30.0 kW/liter, you * * * * * (m) Tier 4 waiver. Starting with model may use assigned deterioration factors Waterline length means the horizontal year 2024, vessel manufacturers may through model year 2026. distance measured between request an exemption from the Tier 4 (3) The assigned deterioration factors perpendiculars taken at the forwardmost standards as follows: are multiplicative values of 1.1 for NOX and aftermost points on the waterline

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corresponding to the deepest operating This applies for a worst-case combination of a fully loaded vessel in draft (see ‘‘Length between freshwater in summer. perpendiculars’’ at 46 CFR 175.400). * * * * * [FR Doc. 2020–18621 Filed 10–1–20; 8:45 am] BILLING CODE 6560–50–P

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Proposed Rules Federal Register Vol. 85, No. 192

Friday, October 2, 2020

This section of the FEDERAL REGISTER • Mail comments to: Secretary, U.S. provided in the ‘‘Availability of contains notices to the public of the proposed Nuclear Regulatory Commission, Documents’’ section. issuance of rules and regulations. The Washington, DC 20555–0001, ATTN: • Attention: The Public Document purpose of these notices is to give interested Rulemakings and Adjudications Staff. Room (PDR), where you may examine persons an opportunity to participate in the For additional direction on obtaining and order copies of public documents is rule making prior to the adoption of the final currently closed. You may submit your rules. information and submitting comments, see ‘‘Obtaining Information and request to the PDR via email at Submitting Comments’’ in the [email protected] or call 1–800– NUCLEAR REGULATORY SUPPLEMENTARY INFORMATION section of 397–4209 between 8:00 a.m. and 4:00 COMMISSION this document. p.m. (EST), Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: 10 CFR Part 50 Stewart Schneider, Office of Nuclear B. Submitting Comments [NRC–2017–0151] Material Safety and Safeguards, 301– Please include Docket ID NRC–2017– RIN 3150–AK07 415–4123, email: Stewart.Schneider@ 0151 in your comment submission. nrc.gov, or On Yee, Office of Nuclear The NRC cautions you not to include Reactor Vessel Material Surveillance Reactor Regulation, telephone: 301– identifying or contact information that Program 415–1905, email: [email protected]. Both you do not want to be publicly are staff of the U.S. Nuclear Regulatory disclosed in your comment submission. AGENCY: Nuclear Regulatory Commission, Washington, DC 20555– The NRC will post all comment Commission. 0001. submissions at https:// ACTION: Proposed rule. www.regulations.gov as well as enter the SUPPLEMENTARY INFORMATION: comment submissions into ADAMS. SUMMARY: The U.S. Nuclear Regulatory The NRC does not routinely edit Commission (NRC) is proposing to Table of Contents comment submissions to remove amend the reactor vessel material I. Obtaining Information and Submitting Comments identifying or contact information. surveillance program requirements for If you are requesting or aggregating commercial light-water power reactors. II. Rulemaking Procedure III. Background comments from other persons for This action would amend the submission to the NRC, then you should requirements associated with the testing IV. Plain Writing V. Paperwork Reduction Act Statement inform those persons not to include of specimens contained within VI. Voluntary Consensus Standards identifying or contact information that surveillance capsules and reporting the VII. Availability of Documents they do not want to be publicly surveillance test results. This action disclosed in their comment submission. would also clarify the requirements for I. Obtaining Information and Submitting Comments Your request should state that the NRC the design of surveillance programs and does not routinely edit comment the capsule withdrawal schedules for A. Obtaining Information submissions to remove such information surveillance capsules in reactor vessels before making the comment Please refer to Docket ID NRC–2017– purchased after 1982. These changes submissions available to the public or 0151 when contacting the NRC about would reduce regulatory burden, with entering the comment into ADAMS. no effect on public health and safety. the availability of information for this DATES: Submit comments by November action. You may obtain publicly- II. Rulemaking Procedure 2, 2020. Comments received after this available information related to this Because the NRC anticipates that this date will be considered if it is practical action by any of the following methods: action will be non-controversial, the to do so, but the NRC is able to ensure • Federal Rulemaking website: Go to NRC is publishing this proposed rule consideration only for comments https://www.regulations.gov and search concurrently with a direct final rule in received on or before this date. for Docket ID NRC–2017–0151. the Rules and Regulations section of this ADDRESSES: You may submit comments • NRC’s Agencywide Documents issue of the Federal Register. The direct by any of the following methods: Access and Management System final rule will become effective on • Federal Rulemaking website: Go to (ADAMS): You may obtain publicly- February 1, 2021. However, if the NRC https://www.regulations.gov and search available documents online in the receives significant adverse comments for Docket ID NRC–2017–0151. Address ADAMS Public Documents collection at on this proposed rule by November 2, questions about NRC dockets to Carol https://www.nrc.gov/reading-rm/ 2020, then the NRC will publish a Gallagher; telephone: 301–415–3463; adams.html. To begin the search, select document that withdraws the direct email: [email protected]. For ‘‘ADAMS Public Documents’’ and then final rule. If the direct final rule is technical questions contact the select ‘‘Begin Web-based ADAMS withdrawn, the NRC will address the individuals listed in the FOR FURTHER Search.’’ For problems with ADAMS, comments received in response to these INFORMATION CONTACT section of this please contact the NRC’s Public proposed revisions in a subsequent final document. Document Room (PDR) reference staff at rule. Absent significant modifications to • Email comments to: 1–800–397–4209, at 301–415–4737, or the proposed revisions requiring [email protected]. If you by email to [email protected]. For republication, the NRC will not initiate do not receive an automatic email reply the convenience of the reader, a second comment period on this action confirming receipt, then contact us at instructions about obtaining materials in the event the direct final rule is 301–415–1677. referenced in this document are withdrawn.

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A significant adverse comment is a change as a function of temperature and Vessel Material Surveillance Program comment where the commenter neutron irradiation. The primary Requirements’’ (appendix H), to part 50 explains why the rule would be material property of interest for the of title 10 of the Code of Federal inappropriate, including challenges to purposes of reactor vessel integrity is Regulations (10 CFR), ‘‘Domestic the rule’s underlying premise or the fracture toughness of the reactor Licensing of Production and Utilization approach, or would be ineffective or vessel material. Extensive experimental Facilities,’’ so that the placement and unacceptable without a change. A work determined that Charpy impact testing of Charpy impact specimens in comment is adverse and significant if: energy tests, which measure the amount capsules between the inner diameter (1) The comment opposes the rule and of energy required to fail a small vessel wall and the core can provide provides a reason sufficient to require a material specimen, can be correlated to data for assessing and projecting the substantive response in a notice-and- changes in fracture toughness of a change in fracture toughness of the comment process. For example, a material. Thus, the Charpy impact reactor vessel. substantive response is required when: specimens 1 from the beltline 2 materials The purpose for requiring a reactor (a) The comment causes the NRC to (i.e., base metal, weld metal, and heat- vessel material surveillance program is reevaluate (or reconsider) its position or affected zone) became the standard to to monitor changes in the fracture conduct additional analysis; assess the change in fracture toughness toughness properties in the beltline (b) The comment raises an issue in ferritic steels. region 3 of the reactor vessel and to use serious enough to warrant a substantive The fracture toughness of reactor this information to analyze the reactor response to clarify or complete the vessel materials decreases with vessel integrity. Surveillance programs record; or decreasing temperature and with are designed not only to examine the (c) The comment raises a relevant increasing irradiation from the reactor. current status of reactor vessel material issue that was not previously addressed The decrease in fracture toughness due properties but also to predict the or considered by the NRC. to neutron irradiation is referred to as changes in these properties resulting (2) The comment proposes a change ‘‘neutron embrittlement.’’ The fracture from the cumulative effects of neutron or an addition to the rule, and it is toughness of reactor vessel materials is irradiation. apparent that the rule would be determined by using fracture toughness The determination as to whether a ineffective or unacceptable without curves in the American Society of commercial nuclear power reactor incorporation of the change or addition. Mechanical Engineers (ASME) Code, vessel requires a material surveillance (3) The comment causes the NRC to which are indexed to the reference program under appendix H to 10 CFR make a change (other than editorial) to temperature for nil-ductility transition part 50 is made at the time of plant the rule. (RTNDT), as specified in ASME Boiler licensing under 10 CFR part 50 or 10 For procedural information and the and Pressure Vessel Code, Section II, CFR part 52, ‘‘Licenses, Certifications, regulatory analysis, see the direct final ‘‘Materials.’’ To account for the effects and Approvals for Nuclear Power rule published in the Rules and of neutron irradiation, the increase in Plants.’’ If this surveillance program is Regulations section of this issue of the RTNDT is equated to the increase in the required, it is designed and Federal Register. 30 ft-lb index temperature from tests of implemented at that time using the III. Background Charpy-V notch impact specimens existing requirements. Certain aspects of irradiated in capsules as a part of the the program, such as the specific A. Description of a Reactor Vessel surveillance program. The surveillance materials to be monitored, the number Material Surveillance Program program includes Charpy impact of required surveillance capsules to be The reactor vessel and its internal specimens of the base and weld metals inserted in the reactor vessel, and the components support and align the fuel for the reactor vessel in each initial capsule withdrawal schedule assemblies that make up the reactor core surveillance capsule. These surveillance were designed for the original licensed and provide a flow path to ensure capsules are exposed to the same period of operation (i.e., 40 years). The adequate heat removal from the fuel operating conditions as the reactor editions of the ASTM International assemblies. The reactor vessel also vessel, and because the capsules are (ASTM) E 185 which are incorporated provides containment and a floodable located closer to the reactor core than by reference in appendix H to 10 CFR volume to maintain core cooling in the the reactor vessel inner diameter, the part 50 recommend three, four, or five event of an accident causing loss of the surveillance specimens are generally surveillance capsules to be included in primary coolant. It is a cylindrical shell exposed to higher neutron irradiation the design of the reactor vessel material with a welded hemispherical bottom levels than those experienced by the surveillance programs for the original head and a removable hemispherical reactor vessel at any given time. licensed period of operation, based on upper head. Some vessel shells were As a result of the surveillance the irradiation sensitivity of the material fabricated from curved plates that were capsule’s location within the reactor used to fabricate the reactor vessel.4 joined by longitudinal and vessel, the test specimens generally circumferential welds. Others were reflect changes in fracture toughness 3 NRC Regulatory Issue Summary 2014–11, manufactured using forged rings and, due to neutron embrittlement in ‘‘Information on Licensing Applications for advance of what the reactor vessel Fracture Toughness Requirements for Ferric Reactor therefore, only have circumferential Coolant Pressure Boundary Components,’’ includes welds that join the rings. These plate experiences and provide insight to the a definition of reactor vessel beltline. and forging materials are referred to as future condition of the reactor vessel. 4 The requirements in appendix H to 10 CFR part base metals. Maintenance of the Therefore, the NRC instituted reactor 50 are based, in part, on the information contained vessel material surveillance programs as within ASTM E 185–73, ‘‘Standard Recommended structural integrity of the reactor vessel Practice for Surveillance Tests for Nuclear Reactor is essential in ensuring plant safety, a requirement of appendix H, ‘‘Reactor Vessels;’’ ASTM E 185–79, ‘‘Standard Practice for because there is no redundant system to Conducting Surveillance Tests for Light-Water maintain core cooling in the event of a 1 A Charpy impact specimen is a bar of metal, or Cooled Nuclear Power Reactor Vessels;’’ and ASTM other material, having a V-groove notch machined E 185–82, ‘‘Standard Practice for Conducting vessel failure. across the 10 mm thickness dimension. Surveillance Tests for Light-Water Cooled Nuclear One characteristic of reactor vessel 2 A definition of the beltline or beltline region is Power Reactor Vessels,’’ which are incorporated by steels is that their material properties provided in appendix G to 10 CFR part 50. reference.

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Most plants have included several reactor vessel. For each capsule these results support reconsidering the additional surveillance capsules beyond withdrawal, the test procedures and specimen types required for testing, and the number recommended by ASTM E reporting requirements must meet the the required time for reporting the 185. These capsules are referred to as requirements of ASTM E 185–82, results from surveillance capsule ‘‘standby capsules.’’ The surveillance ‘‘Standard Practice for Conducting testing. One outcome of this effort was program for each reactor vessel provides Surveillance Tests for Light-Water that some specimen types were found to assurance that the plant’s operating Cooled Reactor Vessels,’’ to the extent contribute to the characterization of limits (e.g., the pressure-temperature practicable for the configuration of the reactor vessel embrittlement, while limits) continue to meet the provisions specimens in the capsule. others did not. Therefore, the NRC in Appendix G of ASME Boiler and The design of the surveillance determined that these latter types were Pressure Vessel Code, Section XI, program and the withdrawal schedule unnecessary to meet the objectives of ‘‘Rules for Inservice Inspection of must meet the requirements of the appendix H to 10 CFR part 50 and Nuclear Power Plant Components,’’ as edition of ASTM E 185 that is current should no longer be required. Revising required by appendix G, ‘‘Fracture on the issue date of the ASME Code to appendix H to 10 CFR part 50 to address Toughness Requirements,’’ to 10 CFR which the reactor vessel was purchased. this situation would reduce the part 50. The program also provides Later editions of ASTM E 185, up to and regulatory burden on licensees for data assurance that the reactor vessel including those editions through 1982, collection, with no effect on public material upper shelf energy meets the may be used. Appendix H to 10 CFR health and safety. requirements of appendix G to 10 CFR part 50 specifically incorporates by part 50. These assessments are used to reference ASTM E 185–73, ‘‘Standard In 1983, appendix H to 10 CFR part ensure the integrity of the reactor vessel. Recommended Practice for Surveillance 50 was revised to require licensees to In addition to the Charpy impact Tests for Nuclear Reactor Vessels;’’ submit test results to the NRC within specimens for determining the ASTM E 185–79, ‘‘Standard Practice for one year of the date of capsule embrittlement in the reactor vessel, the Conducting Surveillance Tests for Light- withdrawal, unless an extension is surveillance capsules typically contain Water Cooled Nuclear Power Reactor granted by the Director, Office of neutron dosimeters, thermal monitors, Vessels,’’ and ASTM E 185–82. In sum, Nuclear Reactor Regulation (48 FR and tension specimens.5 Surveillance the surveillance program must comply 24008; May 27, 1983). As stated in the capsules may also contain correlation with ASTM E 185, as modified by 1983 rulemaking, the reason for the monitor material, which is a material appendix H to 10 CFR part 50. The requirement was the need for timely with composition, properties, and number, design, and location of these reporting of test results and notification response to radiation that have been surveillance capsules within the reactor of any problems. At that time, there was well-characterized. The overall accuracy vessel are established during the design a limited amount of data from irradiated of neutron fluence measurements is of the program, before initial plant materials from which to estimate dependent upon knowledge of the operation. embrittlement trends of reactor vessels neutron spectrum. Therefore, a variety Appendix H to 10 CFR part 50 also at nuclear power plants, making it of neutron detector materials (dosimetry specifies that each capsule withdrawal important to receive timely reporting of wires) are included in each surveillance and subsequent test results must be the test results. capsule and used in the determination subject of a summary technical report to Licensees that participate in an of neutron fluence for the vessel. The be submitted to the NRC within one integrated surveillance program have thermal monitors that are placed in the year of the date of capsule withdrawal, found it challenging to meet this one- capsules (e.g., low melting point unless an extension is granted by the year requirement. This is related to the elements or eutectic alloys) are used to Director, Office of Nuclear Reactor fact that an integrated surveillance Regulation. The NRC uses the results identify the irradiated specimen’s program requires coordination among from the surveillance program to assess maximum exposure temperature. the multiple licensees participating in licensee submittals related to pressure- the program.6 A significant number of B. Current Requirements Under temperature limits under appendix G to test specimens have been analyzed since Appendix H to 10 CFR part 50 10 CFR part 50 and to assess pressurized 1983, the results of which support a water reactor licensee’s compliance Appendix H to 10 CFR part 50 reduced need for prompt reporting of with either § 50.61, ‘‘Fracture toughness requires light-water nuclear power the test results. Therefore, there is a requirements for protection against reactor licensees to have a reactor vessel reduced need for prompt reporting of pressurized thermal shock events,’’ or material surveillance program to the test results. Based on this, the NRC § 50.61a, ‘‘Alternate fracture toughness monitor changes in the fracture has determined that the reporting requirements for protection against toughness properties of the reactor requirement in appendix H to 10 CFR pressurized thermal shock events.’’ vessel materials adjacent to the reactor part 50 should be revised. Extending the core in the beltline region. Unless it can C. The Need for Rulemaking reporting period allows for more time be shown that the end of design life When appendix H to 10 CFR part 50 for licensee coordination and should neutron fluence is below certain criteria, was established as a requirement (38 FR eliminate the need for licensees to the NRC requires licensees to 19012; July 17, 1973), limited prepare and submit extension requests implement a materials surveillance information and data were available on and for the NRC to review such program that tests irradiated material the subject of reactor vessel specimens that are located in embrittlement. Thus, appendix H to 10 6 Appendix H to 10 CFR part 50 permits the use surveillance test capsules in the reactor CFR part 50 required the inclusion of a of an integrated surveillance program (ISP) as an vessels. The program evaluates changes alternative to a plant-specific surveillance program. comprehensive collection of specimen in material fracture toughness and In an ISP, the representative materials chosen for types representing the reactor vessel surveillance of a reactor vessel are irradiated in one thereby assesses the integrity of the beltline materials in each surveillance or more other reactor vessel vessels that have similar design and operating features. The data 5 Tension specimens have a standardized sample capsule. Since 1973, a significant obtained from these test specimens may then be cross-section, with two shoulders and a gage number of surveillance capsules have used in the analysis of other plants participating in (section) in between. been withdrawn and tested. Analyses of the program.

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requests. This revision would have no requirements that are subject to the Licensees that participate in an effect on public health and safety. Paperwork Reduction Act of 1995 (44 integrated surveillance program have U.S.C. 3501 et seq). This proposed rule found it challenging to meet this one- D. Regulatory Basis To Support has been submitted to the Office of year requirement, due to the time Rulemaking Management and Budget (OMB) for needed for coordination among the In January 2019, the Commission review and approval of the information multiple licensees participating in the issued Staff Requirements collection requirements program. A significant number of test Memorandum (SRM)-COMSECY–18– Type of submission, new or revision: specimens have been analyzed since 0016, ‘‘Request Commission Approval Revision. 1983, the results of which support the to Use the Direct Final Rule Process to The title of the information collection: reduced need for prompt reporting of Revise the Testing and Reporting Reactor Vessel Material Surveillance the test results. Based on this finding, Requirements in 10 CFR part 50, Program. the NRC determined that the reporting Appendix H, Reactor Vessel Material The form number if applicable: NA. requirement in appendix H to 10 CFR Surveillance Program Requirements How often the collection is required or part 50 should be revised. The NRC is (RIN 3150–AK07),’’ approving requested: On occasion. proposing to extend the reporting period publication of the supporting regulatory Who will be required or asked to from 1 year to 18 months, with the basis and use of the direct final rule respond: Holders of an operating license objectives of eliminating the need for process. On April 3, 2019, the NRC for commercial light-water power licensees to prepare and submit issued the regulatory basis which reactors. extension requests and for the NRC to An estimate of the number of annual provides an in-depth discussion on the review such requests. This revision technical merits of this rulemaking (84 responses: A reduction of 1 response. The estimated number of annual would have no effect on public health FR 12876).7 The regulatory basis respondents: A reduction of 1 and safety. includes additional information on the Licensees must maintain records and respondent. regulatory framework, types of reactor An estimate of the total number of prepare reports to demonstrate their vessel material surveillance programs, hours needed annually to comply with fulfillment of the regulatory regulatory topics that initiated this the information collection requirement requirements related to a reactor vessel rulemaking effort, and options to or request: An annual reduction of 78 material surveillance program. The address these topics. The regulatory hours of reporting burden. information collection requirements basis shows that there is sufficient under this program include: Abstract: The requirements for a • justification to proceed with rulemaking reactor vessel material surveillance Maintenance of records of the test to amend appendix H to 10 CFR part 50 program are specified under appendix H results from this program throughout to eliminate and reduce certain test the life of the reactor vessel. to 10 CFR part 50. The NRC requires • specimens and extend the period to light-water nuclear power reactor Reports of the information specified submit surveillance capsule reports to licensees to implement this program in ASTM E 185–82. the NRC. In addition, in SRM– when it cannot be shown that the end The NRC published a Federal COMSECY–18–0016, the Commission of design life neutron fluence for the Register notice with a 60-day comment directed the staff to clarify the period on this information collection on reactor vessel is below certain criteria. 8 requirements for the design of This program monitors changes in the , 2020, 85 FR 1825. No surveillance programs and the fracture toughness properties of the comments were received. The NRC is providing the public a withdrawal schedules for reactor vessels reactor vessel materials adjacent to the second opportunity to comment on the purchased after 1982. These revisions reactor core. It involves the testing of potential impact of the information would not establish any additional irradiated material specimens that are collections contained in this proposed requirements for the current fleet of located in surveillance capsules in the rule and on the following issues: operating reactors. reactor vessel. The surveillance test 1. Is the proposed information results are used to evaluate the changes IV. Plain Writing collection necessary for the proper in material fracture toughness and The Plain Writing Act of 2010 (Pub. performance of the functions of the thereby assesses the integrity of the L. 111–274) requires Federal agencies to NRC, including whether the information reactor vessel. write documents in a clear, concise, Appendix H to 10 CFR part 50 will have practical utility? 2. Is the estimate of burden accurate? well-organized manner that also follows requires that within one year of the date 3. Is there a way to enhance the other best practices appropriate to the of the surveillance capsule withdrawal, quality, utility, and clarity of the subject or field and the intended a summary technical report be information to be collected? audience. The NRC has written this submitted to the NRC that contains the 4. How can the burden of the document to be consistent with the data required by ASTM E 185, and the information collection be minimized, Plain Writing Act as well as the results of all fracture toughness tests including the use of automated Presidential Memorandum, ‘‘Plain conducted on the beltline materials in collection techniques? Language in Government Writing,’’ the irradiated and unirradiated A copy of the OMB clearance package published , 1998 (63 FR 31883). conditions, unless an extension is and proposed rule is available in The NRC requests comment on the granted by the Director, Office of ADAMS under Accession Nos. proposed rule with respect to clarity Nuclear Reactor Regulation. At the time ML20041B864 and ML19184A621, and effectiveness of the language used. this requirement became effective (48 respectively, or may be viewed free of FR 24008; July 26, 1983), there was a V. Paperwork Reduction Act charge at the NRC’s PDR, One White limited amount of data from irradiated This proposed rule contains new or Flint North, 11555 Rockville Pike, Room materials from which to estimate amended information collection O1–F21, Rockville, MD 20852. You may embrittlement trends of reactor vessels at nuclear power plants, making it 7 A subsequent notification was published on 8 A subsequent notice was published on January April 12, 2019 (84 FR 14845), to correct the ADAMS important to receive timely reporting of 21, 2020 (85 FR 3432), to correct the Docket ID accession number for the regulatory basis. test results. listed in the body of the notice

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obtain information and comment collection displays a currently valid period for licensees to submit the report submissions related to the OMB OMB control number. of test results to the NRC. The increase clearance package by searching on in neutron fluence over 6 months is very https://www.regulations.gov under VI. Voluntary Consensus Standards small, and therefore the projected Docket ID NRC–2017–0151. The National Technology Transfer increase in embrittlement over this Send comments on any aspect of and Advancement Act of 1995 (Pub. L. period would also be very small. This these proposed information collections, 104–113) requires that Federal agencies small impact, in conjunction with the including suggestions for reducing the use technical standards that are margin of safety which is inherent in the burden and on the above previously developed or adopted by voluntary pressure-temperature limit curves, stated issues, by November 2, 2020 to consensus standards bodies unless minimizes any impact due to the 6 the Information Services Branch (T6– using such a standard is inconsistent month increase. This action would not A10M), U.S. Nuclear Regulatory with applicable law or otherwise constitute the establishment of new Commission, Washington, DC 20555– conditions on the ASTM standards that 0001, or by email to impractical. In this proposed rule, the NRC would amend the reactor vessel are currently incorporated by reference [email protected] and to the in appendix H to 10 CFR part 50 nor a OMB reviewer at: OMB Office of materials surveillance program requirements to reduce the regulatory standard that contains generally Information and Regulatory Affairs applicable requirements. This action (3150–0011), Attn: Desk Officer for the burden for non-safety-significant issues associated with the testing of would maintain the use of the ASTM Nuclear Regulatory Commission, 725 standards that are currently 17th Street NW, Washington, DC 20503; surveillance capsule specimens and _ reporting the surveillance test results. It incorporated by reference in appendix H email: oira [email protected]. to 10 CFR part 50 but would make Comments received after this date will would also clarify the requirements for the design of surveillance programs and optional certain aspects of the ASTM be considered if it is practical to do so, standards that have been determined but assurance of consideration cannot the withdrawal schedules for reactor not to be necessary for safe operation of be given to comments received after this vessels purchased after 1982. nuclear power plants. date. Specifically, this proposed rule allows licensees to reduce the testing of some VII. Availability of Documents Public Protection Notification specimens and eliminates the testing of The NRC may not conduct or sponsor, other specimens that were found not to The documents identified in the and a person is not required to respond provide meaningful information to following table are available to to, a collection of information unless the assess the integrity of the reactor vessel. interested persons through one or more document requesting or requiring the It would also extend by 6 months the of the following methods, as indicated.

Adams Accession No./Web Link/ Document Federal Register Citaton

ASME Boiler and Pressure Vessel Code, Section II, ‘‘Materials’’ ...... https://www.asme.org. NRC Regulatory Issue Summary 2014–11, ‘‘Information on Licensing Applications for Fracture Toughness ML14149A165. Requirements for Ferric Reactor Coolant Pressure Boundary Components,’’ , 2014. ASTM E 185-73, ‘‘Standard Recommended Practice for Surveillance Tests for Nuclear Reactor Vessels’’ ...... https://www.astm.org. ASTM 185-79, ‘‘Standard Practice for Conducting Surveillance Tests for Light-Water Cooled Nuclear Power https://www.astm.org. Reactor Vessels’’. ASTM E 185-82, ‘‘Standard Practice for Conducting Surveillance Tests for Light-Water Cooled Nuclear https://www.astm.org. Power Reactor Vessels’’. ASME Boiler and Pressure Vessel Code, Section XI, Appendix G, ‘‘Rules for Inservice Inspection of Nuclear https://www.asme.org. Power Plant Components’’. Federal Register notification—‘‘Part 50 Final Rule–Licensing of Production and Utilization Facilities; Fracture 38 FR 19012. Toughness and Surveillance Program Requirements,’’ July 17, 1973. Federal Register notification—‘‘10 CFR Part 50 Final Rule, Fracture Toughness Requirements for Light- 48 FR 24008. Water Nuclear Power Reactors,’’ May 27, 1983. Rulemaking for Appendix H to 10 CFR Part 50, ‘‘Reactor Vessel Material Surveillance Program Require- ML19038A477. ments—Regulatory Basis,’’ April 2019. Federal Register notification—‘‘10 CFR Part 50, Reactor Vessel Material Surveillance Program: Regulatory 84 FR 12876. Basis; Availability,’’ April 3, 2019. Federal Register notification—‘‘10 CFR Part 50, Reactor Vessel Material Surveillance Program: Regulatory 84 FR 14845. Basis; Availability; Correction,’’ April 12, 2019. Staff Requirements Memorandum (SRM)-COMSECY-18-0016, ‘‘Request Commission Approval to Use the ML19009A517. Direct Final Rule Process to Revise the Testing and Reporting Requirements in 10 CFR Part 50, Appendix H, Reactor Vessel Material Surveillance Program Requirements (RIN 3150-AK07),’’ , 2019. Federal Register notice—‘‘Information Collection: Domestic Licensing of Production and Utilization Facilities; 85 FR 1825. Revision of Existing Information Collection; Request for Comment,’’ January 13, 2020. Federal Register notice—‘‘Information Collection: Domestic Licensing of Production and Utilization Facilities; 85 FR 3432. Correction; Revision of Existing Information Collection; Request for Comment; Correction,’’ , 2020. OMB Supporting Statement for Information Collections Contained in the Appendix H to 10 CFR Part 50, ML20041B864. ‘‘Reactor Vessel Material Surveillance Program Requirements, Proposed Rule’’.

The NRC may post materials related website at https://www.regulations.gov to receive alerts when changes or to this document, including public under Docket ID NRC–2017–0151. The additions occur in a docket folder. To comments, on the Federal Rulemaking Federal Rulemaking website allows you subscribe: (1) Navigate to the docket

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folder (NRC–2017–0151); (2) click the ‘‘Size Standards Methodology’’ In September 2010, Congress passed ‘‘Sign up for Email Alerts’’ link; and (3) (Methodology). SBA seeks comments on the Jobs Act (Pub. L. 111–240, 124 Stat. enter your email address and select how its proposed changes to size standards 2504, September 27, 2010), (Jobs Act) frequently you would like to receive in the above sectors, and the data requiring SBA to review all size emails (daily, weekly, or monthly). sources it evaluated to develop the standards every five years and make List of Subjects in 10 CFR Part 50 proposed size standards. necessary adjustments to reflect current DATES: SBA must receive comments to industry and market conditions. In Administrative practice and this proposed rule on or before accordance with the Jobs Act, in early procedure, Antitrust, Backfitting, , 2020. 2016 SBA completed the first 5-year Classified information, Criminal ADDRESSES: Identify your comments by review of all size standards—except penalties, Education, Fire prevention, RIN 3245–AG89 and submit them by Fire protection, Incorporation by those for agricultural enterprises for one of the following methods: (1) reference, Intergovernmental relations, which size standards were previously Federal eRulemaking Portal: Nuclear power plants and reactors, set by Congress—and made appropriate www.regulations.gov. Follow the Penalties, Radiation protection, Reactor adjustments to size standards for a instructions for submitting comments; siting criteria, Reporting and number of industries to reflect current or (2) Mail/Hand Delivery/Courier: recordkeeping requirements, industry and Federal market conditions. Khem R. Sharma, Ph.D., Chief, Office of Whistleblowing. During the previous 5-year Size Standards, 409 Third Street SW, comprehensive review SBA reviewed Dated at Rockville, Maryland, this 24th day Mail Code 6530, Washington, DC 20416. of September, 2020. SBA will post all comments to this the receipts-based size standards for For the Nuclear Regulatory Commission. proposed rule on www.regulations.gov. sixteen (16) industries and two (2) Annette Vietti-Cook, If you wish to submit confidential exceptions within NAICS Sector 11 Secretary for the Commission. business information (CBI) as defined in (Agriculture, Forestry, Fishing and [FR Doc. 2020–21506 Filed 10–1–20; 8:45 am] the User Notice at www.regulations.gov, Hunting); four (4) industries within Sector 21 (Quarrying, and Oil and Gas BILLING CODE 7590–01–P you must submit such information to U.S. Small Business Administration, Extraction), Subsector 213 (Support Khem R. Sharma, Ph.D., Chief, Office of Activity for Mining); three (3) industries SMALL BUSINESS ADMINISTRATION Size Standards, 409 Third Street SW, in Sector 22 (Utilities) and thirty-one Mail Code 6530, Washington, DC 20416, (31) industries and one (1) exception in 13 CFR Part 121 or send an email to sizestandards@ Sector 23 (Construction). These reviews of receipts-based size standards RIN 3245–AG89 sba.gov. Highlight the information that you consider to be CBI and explain why occurred during October 2010 to Small Business Size Standards: you believe SBA should hold this December 2013. SBA’s analyses of the Agriculture, Forestry, Fishing and information as confidential. SBA will relevant industry and Federal Hunting; Mining, Quarrying, and Oil review your information and determine contracting data available at that time and Gas Extraction; Utilities; whether it will make the information supported lowering size standards for Construction public. twenty-eight (28) industries in Sector 23 FOR FURTHER INFORMATION CONTACT: and four (4) industries and two (2) AGENCY: U.S. Small Business exceptions in Sector 11. However, Administration. Jorge Laboy-Bruno, Ph.D., Economist, Office of Size Standards, (202) 205–6618 taking into consideration economic ACTION: Proposed rule. or [email protected]. conditions at the time, SBA decided to either retain all size standards for which SUMMARY: The U.S. Small Business SUPPLEMENTARY INFORMATION: To Administration (SBA) proposes to determine eligibility for Federal small the industry analysis suggested a lower increase its receipts-based small business assistance, SBA establishes size standard at existing levels or bring business size definitions (commonly small business size definitions (usually them up to the relevant common size referred to as ‘‘size standards’’) for referred to as ‘‘size standards’’) for standard. In the final rules, SBA North American Industry Classification private sector industries in the United increased receipts-based size standards System (NAICS) Sectors related to States. SBA uses two primary measures for nineteen (19) of all industries Agriculture, Forestry, Fishing and of business size for size standards reviewed, including eleven (11) Hunting; Mining, Quarrying, and Oil purposes: Average annual receipts and industries in Sector 11 (78 FR 37398, and Gas Extraction; Utilities; and average number of employees. SBA uses June 20, 2013); three (3) industries in Construction. SBA proposes to increase financial assets for certain financial Sector 21 (78 FR 37404, June 20, 2013); size standards for 68 industries in those industries and refining capacity, in three (3) industries in Sector 22 (78 FR sectors, including 58 industries and 2 addition to employees, for the 77343, , 2013); and one (1) subindustries (‘‘exceptions’’) in NAICS petroleum refining industry to measure industry and one (1) exception in Sector Sector 11 (Agriculture, Forestry, Fishing business size. In addition, SBA’s Small 23 (78 FR 77334, December 23, 2013). and Hunting), 3 industries in Sector 21 Business Investment Company (SBIC), SBA retained the existing size standards (Quarrying, and Oil and Gas Extraction), Certified Development Company (504), for the remaining thirty-six (36) 3 industries in Sector 22 (Utilities), and and 7(a) Loan Programs use either the industries and two (2) exceptions in 1 industry and 1 subindustry industry-based size standards or these sectors. Table 1, Size Standards (‘‘exception’’) in Sector 23 tangible net worth and net income based Revisions During the First 5-Year (Construction). SBA’s proposed alternative size standards to determine Review, provides a summary of these revisions relied on its recently revised eligibility for those programs. revisions by NAICS sector.

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TABLE 1—SIZE STANDARDS REVISIONS DURING THE FIRST 5-YEAR REVIEW

Number Number Number Number of size of size of size of size NAICS sector Sector name standards standards standards standards reviewed increased lowered maintained

11 ...... Agriculture, Forestry, Fishing and Hunting ...... 18 11 0 7 21 ...... Mining, Quarrying, and Oil and Gas Extraction ... 4 3 0 1 22 ...... Utilities ...... 3 3 0 0 23 ...... Construction ...... 32 2 0 30

All Sectors ...... 57 19 0 38

Currently, there are twenty-seven (27) standards in six (6) groups of NAICS revised Methodology, SBA issued a different size standards levels covering sectors. (In the prior review, SBA notification in the , 2018 1,023 NAICS industries and 14 reviewed size standards mostly on a edition of the Federal Register (83 FR subindustry activities (commonly sector-by-sector basis.) Once SBA 18468) to solicit comments from the known as ‘‘exceptions’’ in SBA’s table of completes its review of size standards public and notify stakeholders of the size standards). Sixteen (16) of these for a group of sectors, the Agency issues proposed changes to the Methodology. size levels are based on average annual for public comments a proposed rule to SBA considered all public comments in receipts, nine (9) are based on average revise size standards for those industries finalizing the revised Methodology. For number of employees, and two (2) are based on the latest available data and a summary of comments and SBA’s based on other measures. other factors deemed relevant by the responses, refer to the SBA’s , Section 1831 of the National Defense SBA’s Administrator. 2019, Federal Register notification. Authorization Act for Fiscal Year 2017 Below is a discussion of SBA’s The revised Methodology represents a (‘‘NDAA 2017’’) (Pub. L. 114–328, revised ‘‘Size Standards Methodology’’ major change from the previous December 23, 2016) directed SBA to (Methodology), available at methodology, which was issued on establish size standards for all www.sba.gov/size, for establishing, , 2009 (74 FR 53940). agricultural enterprises in the same reviewing, or modifying receipts-based Specifically, in its revised Methodology manner as for other industries and to size standards that SBA has applied to SBA is replacing the ‘‘anchor’’ approach include them in the 5-year rolling this proposed rule. SBA examines the applied in the previous methodology review procedures established under structural characteristics of an industry with a ‘‘percentile’’ approach for section 1344(a) of the Jobs Act. as a basis to assess industry differences evaluating differences in characteristics Accordingly, in this proposed rule, SBA and the overall degree of among various industries. Under the has also reviewed and proposed competitiveness of an industry and of ‘‘anchor’’ approach, SBA generally revisions to size standards for all firms within the industry. Industry evaluated the characteristics of agricultural industries, including 46 structure is typically examined by individual industries relative to the industries that are being reviewed for analyzing four primary factors—average average characteristics of industries the first time. As stated above, firm size, degree of competition within with the anchor size standard to historically, the size standards for most an industry, start-up costs and entry determine whether they should have a agricultural industries were established barriers, and distribution of firms by higher or a lower size standard than the by statute. size. To assess the ability of small anchor. In the ‘‘percentile’’ approach, SBA also adjusts its monetary-based businesses to compete for Federal SBA ranks each industry among all size standards for inflation at least once contracting opportunities under the industries with the same measure of size every five years. An interim final rule current size standards, as the fifth standards (such as receipts or on SBA’s latest inflation adjustment to primary factor, SBA also examines, for employees) in terms of four primary size standards, effective , each industry averaging $20 million or industry factors, discussed in the 2019, was published in the Federal more in average annual Federal contract Industry Analysis subsection below. Register on , 2019 (84 FR 34261). dollars, the small business share in The ‘‘percentile’’ approach is explained SBA also updates its size standards Federal contract dollars relative to the more fully elsewhere in this proposed every five years to adopt the Office of small business share in total industry’s rule. For a more detailed explanation Management and Budget’s (OMB) receipts. When necessary, SBA also please see the revised methodology at quinquennial NAICS revisions to its considers other secondary factors that www.sba.gov/size. Additionally, as the table of small business size standards. are relevant to the industries and the fifth factor, SBA evaluates the difference Effective October 1, 2017, SBA adopted interests of small businesses, including between the small business share in the OMB’s 2017 NAICS revisions to its impacts of size standards changes on Federal contract dollars and the small size standards (82 FR 44886, September small businesses. business share in total industry’s 27, 2017). receipts to compute the size standard for Size Standards Methodology This proposed rule is one of a series the Federal contracting factor. The of proposed rules that will review size SBA has recently revised its overall size standard for an industry is standards of industries grouped by Methodology for establishing, then obtained by averaging all size various NAICS sectors. Rather than reviewing, or modifying size standards standards supported by each primary review all size standards at one time, when necessary. See the notification in factor. The evaluation of the Federal SBA is reviewing size standards by the April 11, 2019, edition of the contracting factor is explained more grouping industries within various Federal Register (84 FR 14587). The fully elsewhere in this proposed rule. NAICS sectors that use the same size revised methodology is available on SBA does not apply all aspects of its measure (i.e., employees or receipts). In SBA’s size standards web page at Methodology to all proposed rules the current review, SBA will review size www.sba.gov/size. Prior to finalizing the because not all features are relevant for

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every industry covered by each significantly different from those in the examines when establishing, reviewing, proposed rule. For example, since all anchor group, SBA assigned a size or revising a size standard for an industries covered by this proposed rule standard that was higher or lower than industry. However, SBA will also have receipts-based size standards, the the anchor. To determine a size consider and evaluate other secondary Methodology described in this proposed standard above or below the anchor size factors that it believes are relevant to a rule applies only to establishing, standard, SBA evaluated the particular industry (such as reviewing, or modifying receipts-based characteristics of a second comparison technological changes, growth trends, size standards. SBA’s Methodology is group of industries with higher size SBA financial assistance, other program available on its website at www.sba.gov/ standards. For industries with receipts- factors). SBA also considers possible size. based standards, the second comparison impacts of size standard revisions on group consisted of industries with size eligibility for Federal small business Industry Analysis standards between $23 million and assistance, current economic conditions, Congress granted SBA’s Administrator $35.5 million, with the weighted the Administration’s policies, and discretion to establish detailed small average size standard for the group suggestions from industry groups and business size standards (15 U.S.C. equaling $29 million. For manufacturing Federal agencies. Public comments on 632(a)(2)). Specifically, section 3(a)(3) of industries and other industries with proposed rules also provide important the Small Business Act (15 U.S.C. employee-based size standards (except additional information. SBA thoroughly 632(a)(3)) requires that ‘‘. . . the [SBA] for Wholesale Trade and Retail Trade), reviews all public comments before Administrator shall ensure that the size the second comparison group included making a final decision on its proposed standard varies from industry to industries with a size standard of 1,000 revisions to size standards. Below are industry to the extent necessary to employees or 1,500 employees, with the brief descriptions of each of the five reflect the differing characteristics of the weighted average size standard of 1,323 primary factors that SBA has evaluated various industries and consider other employees. Using the anchor size for each industry being reviewed in this factors deemed to be relevant by the standard and average size standard for proposed rule. A more detailed Administrator.’’ Accordingly, the the second comparison group, SBA description of this analysis is provided economic structure of an industry is the computed a size standard for an in the SBA’s Methodology, available at basis for establishing, reviewing, or industry’s characteristic (factor) based www.sba.gov/size. modifying small business size on the industry’s position for that factor 1. Average firm size. SBA computes standards. In addition, SBA considers relative to the average values of the two measures of average firm size: current economic conditions, its same factor for industries in the anchor simple average and weighted average. mission and program objectives, the and second comparison groups. For industries with receipts-based size Administration’s current policies, Under the ‘‘percentile’’ approach, for standards, the simple average is the total impacts on small businesses under each industry factor, an industry is receipts of the industry divided by the current size and proposed or revised ranked and compared with the 20th total number of firms in the industry. size standards, suggestions from percentile and 80th percentile values of The weighted average firm size is the industry groups and Federal agencies, that factor among the industries sharing summation of all the receipts of the and public comments on the proposed the same measure of size standards (i.e., firms in an industry multiplied by their rule. SBA also examines whether a size receipts or employees). Combining that share of receipts in the industry. The standard based on industry and other result with the 20th percentile and 80th simple average weighs all firms within relevant data successfully excludes percentile values of size standards an industry equally regardless of their businesses that are dominant in the among the industries with the same size. The weighted average overcomes industry. measure of size standards, SBA that limitation by giving more weight to The goal of SBA’s size standards computes a size standard supported by larger firms. The size standard review is to determine whether its each industry factor for each industry. supported by average firm size is existing small business size standards In the previous Methodology, obtained by averaging size standards reflect the current industry structure comparison industry groups were supported by simple average firm size and Federal market conditions and predetermined independent of the data, and weighted average firm size. revise them when the latest available while in the revised Methodology they If the average firm size of an industry data suggest that revisions are are established using the actual data. A is higher than the average firm size for warranted. In the past, SBA compared more detailed description of the most other industries, this would the characteristics of each industry with percentile method is provided in SBA’s generally support a size standard higher the average characteristics of a group of Methodology, available at www.sba.gov/ than the size standards for other industries associated with the ‘‘anchor’’ size. industries. Conversely, if the industry’s size standard. For example, in the first The primary factors that SBA average firm size is lower than that of 5-year comprehensive review of size evaluates to examine industry structure most other industries, it would provide standards under the Jobs Act, $7 million include average firm size, startup costs a basis to assign a lower size standard (now $8.0 million due to the inflation and entry barriers, industry as compared to size standards for most adjustment in 2019; see 84 FR 34261 competition, and distribution of firms other industries. (July 18, 2019)) was considered the by size. SBA also evaluates, as an 2. Startup costs and entry barriers. ‘‘anchor’’ for receipts-based size additional primary factor, small Startup costs reflect a firm’s initial size standards and 500 employees was the business success in receiving Federal in an industry. New entrants to an ‘‘anchor’’ for employee-based size contracting assistance under the current industry must have sufficient capital standards. If the characteristics of a size standards. Specifically, for the and other assets to start and maintain a specific industry under review were Federal contracting factor, SBA viable business. If firms entering an similar to the average characteristics of examines the small business share of industry under review have greater industries in the anchor group, SBA Federal contract dollars relative to small capital requirements than firms in most generally adopted the anchor size business share of total receipts within other industries, all other factors standard for that industry. If the specific an industry. These are, generally, the remaining the same, this would be a industry’s characteristics were five most important factors SBA basis for a higher size standard.

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Conversely, if the industry has smaller that industry, which would support the same, a justification would exist for capital needs compared to most other adopting a smaller size standard. A considering a size standard higher than industries, a lower size standard would higher size standard would be the current size standard. In cases where be considered appropriate. supported for an industry in which the small business share of the Federal Given the lack of actual data on distribution of firms indicates that most market is already appreciably high startup costs and entry barriers by of the economic activity is concentrated relative to the small business share of industry, SBA uses average assets as a among the larger firms. the overall market, SBA generally proxy for startup costs and entry Concentration is a measure of assumes that the existing size standard barriers. To calculate average assets, inequality of distribution. To determine is adequate with respect to the Federal SBA begins with the sales to total assets the degree of inequality of distribution contracting factor. ratio for an industry from the Risk in an industry, SBA computes the Gini The disparity between the small Management Association’s Annual coefficient, using the Lorenz curve. The business Federal market share and Statement Studies, available at https:// Lorenz curve presents the cumulative industry-wide small business share may rmau.org/. SBA then applies these ratios percentages of units (firms) along the be due to various factors, such as to the average receipts of firms in that horizontal axis and the cumulative extensive administrative and industry obtained from the Economic percentages of receipts (or other compliance requirements associated Census tabulation. An industry with measures of size) along the vertical axis. with Federal contracts, the different average assets that are significantly (For further detail, see SBA’s skill set required to perform Federal higher than most other industries is Methodology on its website at contracts as compared to typical likely to have higher startup costs; this www.sba.gov/size.) Gini coefficient commercial contracting work, and the in turn will support a higher size values vary from zero to one. If receipts size of Federal contracts. These, as well standard. Conversely, an industry with are distributed equally among all the as other factors, are likely to influence average assets that are similar to or firms in an industry, the value of the the type of firms within an industry that lower than most other industries is Gini coefficient will equal zero. If an compete for Federal contracts. By likely to have lower startup costs; this industry’s total receipts are attributed to comparing the small business Federal will support either lowering or a single firm, the Gini coefficient will contracting share with the industry- maintaining the size standard. equal one. wide small business share, SBA 3. Industry competition. Industry SBA compares the degree of includes in its size standards analysis competition is generally measured by inequality of distribution for an industry the latest Federal market conditions. the share of total industry receipts under review with other industries with Besides the impact on Federal generated by the largest firms in an the same type of size standards. If an contracting, SBA also examines impacts industry. SBA generally evaluates the industry shows a higher degree of on SBA’s loan programs both under the share of industry receipts generated by inequality of distribution (hence a current and revised size standards. the four largest firms in each industry. higher Gini coefficient value) compared Sources of Industry and Program Data This is referred to as the ‘‘4-firm to most other industries in the group concentration ratio,’’ a commonly used this would, all else being equal, warrant SBA’s primary source of industry data economic measure of market a size standard that is higher than the used in this proposed rule for evaluating competition. Using the 4-firm size standards assigned to most other industry characteristics and developing concentration ratio, SBA compares the industries. Conversely, an industry with size standards is a special tabulation of degree of concentration within an lower degree of inequality (i.e., a lower the Economic Census from the U.S. industry to the degree of concentration Gini coefficient value) than most others Census Bureau (www.census.gov/econ/ of the other industries with the same will be assigned a lower size standard census). The tabulation based on the measure of size standards. If a relative to others. 2012 Economic Census is the latest significantly higher share of economic 5. Federal contracting. As the fifth available. The special tabulation activity within an industry is factor, SBA examines the success small provides industry data on the number of concentrated among the four largest businesses are having in winning firms, number of establishments, firms compared to most other Federal contracts under the current size number of employees, annual payroll, industries, all else being equal, SBA standard as well as the possible impact and annual receipts of companies by would set a size standard that is a size standard change may have on Industry (6-digit level), Industry Group relatively higher than for most other Federal small business contracting (4-digit level), Subsector (3-digit level), industries. Conversely, if the market opportunities. The Small Business Act and Sector (2-digit level). These data are share of the four largest firms in an requires the Federal government to arrayed by various classes of firms’ size industry is appreciably lower than the ensure that small businesses receive a based on the overall number of similar share for most other industries, ‘‘fair proportion’’ of Federal contracts. employees and receipts of the entire the industry will be assigned a size The legislative history also discusses the enterprise (all establishments and standard that is lower than those for importance of size standards in Federal affiliated firms) from all industries. The most other industries. contracting. To incorporate the Federal special tabulation also contains 4. Distribution of firms by size. SBA contracting factor in the size standards information for different levels of examines the shares of industry total analysis, SBA evaluates small business NAICS categories on average and receipts accounted for by firms of participation in Federal contracting in median firm size in terms of both different receipts and employment sizes terms of the share of total Federal receipts and employment, total receipts in an industry. This is an additional contract dollars awarded to small generated by the four and eight largest factor SBA considers in assessing businesses relative to the small business firms, the Herfindahl-Hirschman Index competition within an industry besides share of industry’s total receipts. In (HHI), the Gini coefficient, and size the 4-firm concentration ratio. If the general, if the share of Federal contract distributions of firms by various receipts preponderance of an industry’s dollars awarded to small businesses in and employment size groupings. economic activity is attributable to an industry is significantly smaller than In some cases, where data were not smaller firms, this generally indicates the small business share of total available due to disclosure prohibitions that small businesses are competitive in industry’s receipts, all else remaining in the Census Bureau’s tabulation, SBA

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either estimated missing values using Data sources and estimation standard for each of the five primary available relevant data or examined data procedures SBA uses in its size factors and in calculating the overall at a higher level of industry aggregation, standards analysis are documented in size standard for the industry. such as at the NAICS 2-digit (Sector), 3- detail in SBA’s Methodology, which is As a policy decision, SBA continues digit (Subsector), or 4-digit (Industry available at www.sba.gov/size. to maintain the minimum and Group) level. In some instances, SBA’s maximum levels for both receipts and Dominance in Field of Operation analysis was based only on those factors employee-based size standards. for which data were available or Section 3(a) of the Small Business Act Accordingly, SBA will not generally estimates of missing values were (15 U.S.C. 632(a)) defines a small propose or adopt a size standard that is possible. business concern as one that is: (1) either below the minimum level or To evaluate some industries that are Independently owned and operated; (2) above the maximum, even though the not covered by the Economic Census, not dominant in its field of operation; calculations yield values below the SBA used a similar special tabulation of and (3) within a specific small business minimum or above the maximum. The the latest County Business Patterns definition or size standard established minimum size standard reflects the size (CBP) published by the U.S. Census by SBA Administrator. SBA considers an established small business should be Bureau (www.census.gov/programs- as part of its evaluation whether a to have adequate capabilities and surveys/cbp.html). Similarly, to evaluate business concern at a proposed size resources to be able to compete for and industries in NAICS Sector 11 that are standard would be dominant in its field perform Federal contracts (but does not also not covered by the Economic of operation. For this, SBA generally account for small businesses that are Census and CBP, SBA evaluated a examines the industry’s market share of newly formed or just starting similar special tabulation based on the firms at the proposed or revised size operations). On the other hand, the 2012 Census of Agriculture standard as well as the distribution of maximum size standard represents the (www.nass.usda.gov) from the National firms by size. Market share and size level above which businesses, if Agricultural Statistics Service (NASS). distribution may indicate whether a qualified as small, would outcompete Besides the Economic Census, firm can exercise a major controlling much smaller businesses when Agricultural Census and CBP influence on a national basis in an accessing Federal assistance. tabulations, SBA also evaluates relevant industry where a significant number of With respect to receipts-based size industry data from other sources when business concerns are engaged. If a standards, SBA has established $6 necessary, especially for industries that contemplated size standard includes a million and $41.5 million, respectively, are not covered by the Economic Census dominant firm, SBA will consider a as the minimum and maximum size or CBP. These include the Quarterly lower size standard to exclude the standard levels (except for most Census of Employment and Wages dominant firm from being defined as agricultural industries in NAICS (QCEW, also known as ES–202 data) small. Subsectors 111 and 112). These levels reflect the current minimum of $6.0 (www.bls.gov/cew/) and Business Selection of Size Standards Employment Dynamics (BED) data million and the current maximum of (www.bls.gov/bdm/) from the U.S. In the 2009 Methodology SBA applied $41.5 million. The industry data Bureau of Labor Statistics. Similarly, to to the first 5-year comprehensive review suggests that $6 million minimum and evaluate certain financial industries that of size standards, SBA adopted a fixed $41.5 million maximum size standards have assets-based size standards, SBA number of size standards levels as part would be too high for agricultural examines the data from the Statistics on of its effort to simplify size standards. In industries. Accordingly, SBA has Depository Institutions (SDI) database response to public comments to the established $1 million as the minimum (www5.fdic.gov/sdi/main.asp) of the 2009 Methodology white paper, and the size standard and $5 million as the Federal Deposit Insurance Corporation 2013 amendment to the Small Business maximum size standard for industries in (FDIC). Finally, to evaluate the capacity Act (section 3(a)(8)) under section 1661 Subsector 111 (Crop Production) and component of the Petroleum Refiners of the National Defense Authorization Subsector 112 (Animal Production and (NAICS 324110) size standard, SBA Act for Fiscal Year 2013 (‘‘NDAA 2013’’) Aquaculture). (Pub. L. 112–239, , 2013), in evaluates the petroleum production data Evaluation of Industry Factors from the Energy Information the revised Methodology SBA relaxed Administration (www.eia.gov). the limitation on the number of small As mentioned earlier, to assess the To calculate average assets, SBA used business size standards. Specifically, appropriateness of the current size sales to total assets ratios from the Risk section 1661 of NDAA 2013 states ‘‘SBA standards SBA evaluates the structure of Management Association’s Annual cannot limit the number of size each industry in terms of four economic eStatement Studies, 2016–2018 (https:// standards, and shall assign the characteristics or factors, namely rmau.org/). To evaluate Federal appropriate size standard to each average firm size, average assets size as contracting trends and evaluate two industry identified by NAICS.’’ a proxy for startup costs and entry exceptions in Sector 11 and one In the revised Methodology, SBA barriers, the 4-firm concentration ratio exception in Sector 23, SBA examined calculates a separate size standard for as a measure of industry competition, the data on Federal prime contract each NAICS industry. However, to and size distribution of firms using the awards from the Federal Procurement account for errors and limitations Gini coefficient. For each size standard Data System—Next Generation (FPDS– associated with various data SBA type (i.e., receipts-based or employee- NG) (www.fpds.gov) for fiscal years evaluates in the size standards analysis, based) SBA ranks industries both in 2016–2018. To assess the impact on SBA rounds the calculated size standard terms of each of the four industry factors financial assistance to small businesses, value for a receipts-based size standard and in terms of the existing size SBA examined its internal data on 7(a) to the nearest $500,000, except for standard and computes the 20th and 504 loan programs for fiscal years agricultural industries in Subsectors 111 percentile and 80th percentile values for 2016–2018. For some portion of impact and 112 for which the calculated size both. SBA then evaluates each industry analysis, SBA also evaluated the data standards will be rounded to the nearest by comparing its value for each industry from the System of Award Management $250,000. This rounding procedure is factor to the 20th percentile and 80th (www.sam.gov). applied both in calculating a size percentile values for the corresponding

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factor for industries under a particular of industries. A separate size standard is size standards levels, as discussed type of size standard. established for each factor based on the before. As noted earlier, the calculated If the characteristics of an industry amount of differences between the value for a receipts-based size standard under review within a particular size factor value for an industry under a for each industry factor is rounded to standard type are similar to the average particular size standard type and 20th the nearest $500,000, except for characteristics of industries within the percentile and 80th percentile values for industries in Subsectors 111 and 112 for same size standard type in the 20th the corresponding factor for all which a calculated size standard is percentile, SBA will consider adopting industries in the same type. rounded to the nearest $250,000. as an appropriate size standard for that Specifically, the actual level of the new industry the 20th percentile value of Table 2, 20th and 80th Percentiles of size standard for each industry factor is size standards for those industries. For Industry Factors for Receipts-based Size each size standard type, if the industry’s derived by a linear interpolation using Standards, shows the 20th percentile characteristics are similar to the average the 20th percentile and 80th percentile and 80th percentile values for average characteristics of industries in the 80th values of that factor and corresponding firm size (simple and weighted), average percentile, SBA will assign a size percentiles of size standards. Each assets size, 4-firm concentration ratio, standard that corresponds to the 80th calculated size standard is bounded and Gini coefficient for industries with percentile in the size standard rankings between the minimum and maximum receipts-based size standards.

TABLE 2—20TH AND 80TH PERCENTILES OF INDUSTRY FACTORS FOR RECEIPTS-BASED SIZE STANDARDS

Simple Weighted 4-firm average average Average concentration Gini Industries/percentiles receipts size receipts size assets size ratio coefficient ($ million) ($ million) ($ million) (%)

Industries, excluding Subsectors 111 and 112 20th percentile ...... 0.83 19.42 0.34 7.9 0.686 80th percentile ...... 7.52 830.65 5.19 42.4 0.834 Industries in Subsectors 111 and 112 20th percentile ...... 0.06 1.48 0.07 1.7 0.608 80th percentile ...... 0.83 13.32 0.88 12.3 0.908

Estimation of Size Standards Based on million is 15.9 percent between the 20th industry with $20 million or more in Industry Factors percentile value ($0.83 million) and the annual Federal contract dollars, SBA An estimated size standard supported 80th percentile value ($7.52 million) of evaluates the small business share of ¥ by each industry factor is derived by simple average receipts (($1.9 million total Federal contract dollars relative to ÷ ¥ comparing its value for a specific $0.83 million) ($7.52 million $0.83 the small business share of total industry to the 20th percentile and 80th million) = 0.159 or 15.9%). Applying industry receipts. All other factors being percentile values for that factor. If an this percentage to the difference equal, if the share of Federal contracting industry’s value for a particular factor is between the 20th percentile value ($8 dollars awarded to small businesses in near the 20th percentile value in the million) and 80th percentile ($35.0 an industry is significantly less than the distribution, the supported size million) value of size standards and small business share of that industry’s standard will be one that is close to the then adding the result to the 20th total receipts, a justification would exist 20th percentile value of size standards percentile size standard value ($8.0 for considering a size standard higher for industries in the size standards million) yields a calculated size than the current size standard. group, which is $8.0 million. If a factor standard value of $12.32 million Conversely, if the small business share for an industry is close to the 80th ([{$35.0 million ¥ $8.0 million} * of Federal contracting activity is near or percentile value of that factor, it would 0.159] + $8.0 million = $12.32 million). above the small business share in total support a size standard that is close to The final step is to round the calculated industry receipts, this will support the the 80th percentile value in the $12.32 million size standard to the current size standard. distribution of size standards, which is nearest $500,000, which in this example SBA increases the existing size $35.0 million. For a factor that is within, yields $12.5 million. This procedure is standards by certain percentages when above, or below the 20–80th percentile applied to calculate size standards the small business share of total range, the size standard is calculated supported by other industry factors. industry receipts exceeds the small using linear interpolation based on the Detailed formulas involved in these business share of total Federal contract 20th percentile and 80th percentile calculations are presented in SBA’s dollars by 10 or more percentage points. values for that factor and the 20th Methodology which is available at Proposed percentage increases generally percentile and 80th percentile values of www.sba.gov/size. reflect receipts levels needed to bring the small business share of Federal size standards. Derivation of Size Standards Based on For example, if an industry’s simple contracts on par with the small business Federal Contracting Factor average receipts are $1.9 million, that share of industry receipts. These would support a size standard of $12.5 Besides industry structure, SBA also proposed percentage increases for million. According to Table 2, the 20th evaluates Federal contracting data to receipts-based size standards are given percentile and 80th percentile values of assess the success of small businesses in in Table 3, Proposed Adjustments to average receipts are $0.83 million and getting Federal contracts under the Size Standards Based on Federal $7.52 million, respectively. The $1.9 existing size standards. For each Contracting Factor.

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TABLE 3—PROPOSED ADJUSTMENTS TO SIZE STANDARDS BASED ON FEDERAL CONTRACTING FACTOR

Percentage difference between the small business shares of total Federal contract Size standards dollars in an industry and of total industry receipts >¥10% ¥ 10% to ¥ 30% <¥ 30%

Receipts-based standards <$15 million ...... No change ...... Increase 30% ...... Increase 60% $15 million to < $25 million ...... No change ...... Increase 20% ...... Increase 40% $25 million to < $41.5 million ...... No change ...... Increase 15% ...... Increase 25%

For example, if an industry with the contracting dollars was 10 percentage Methodology, available on its website at current size standard of $8.0 million points or more) in seven (7) of these www.sba.gov/size. had an average of $50 million in Federal industries, prompting an upward contracting dollars, of which 15 percent adjustment of their existing size Calculated Size Standards Based on went to small businesses, and if that standards based on that factor. For the Industry and Federal Contracting small businesses accounted for 40 remaining twenty-four (24) industries Factors percent of total receipts of that industry, that averaged $20 million or more in Table 4, Size Standards Supported by the small business share of total Federal average annual contract dollars, the Each Factor for Each Industry contract dollars would be 25 percent Federal contracting factor was not (Receipts), below, shows the results of significant, and the existing size less than the small business share of analyses of industry and Federal ¥ standard was applied for that factor. For total industry receipts (40% 15%). contracting factors for each industry and industries with less than $20 million in According to the above rule, the new subindustry (exception) covered by this average annual contract dollars, no size size standard for the Federal contracting proposed rule. NAICS industries in factor for that industry would be set by standard was calculated for the Federal contracting factor. columns 2, 3, 4, 5, 6, 7, and 8 show two multiplying the current $8.0 million numbers. The upper number is the standard by 1.3 (i.e., 30% increase) and Derivation of Overall Industry Size value for the industry or Federal then by rounding the result to the Standard contracting factor shown on the top of nearest $500,000, yielding a size The SBA’s Methodology presented the column and the lower number is the standard of $10.5 million. above results in five separate size size standard supported by that factor. SBA evaluated the small business standards based on evaluation of the Column 9 shows a calculated new size share of total Federal contract dollars for five primary factors (i.e., four industry standard for each industry. This is the the thirty-one (31) industries covered by factors and one Federal contracting average of the size standards supported this proposed rule—five (5) in Sector 11, factor). SBA typically derives an by each factor, rounded to the nearest one (1) in Sector 21, three (3) in Sector industry’s overall size standard by $500,000 for non-agriculture industries 22, and twenty-two (22) in Sector 23)— assigning equal weights to size and rounded to the nearest $250,000 for that had $20 million or more in average standards supported by each of these agriculture industries. Analytical details annual Federal contract dollars during five factors. However, if necessary, involved in the averaging procedure are fiscal years 2016–2018. The Federal SBA’s Methodology would allow described in SBA’s Methodology, which contracting factor was significant (i.e., assigning different weights to some of is available at www.sba.gov/size. For the difference between the small these factors in response to its policy comparison with the calculated new business share of total industry receipts decisions and other considerations. For size standards, the current size and small business share of Federal detailed calculations, see SBA’s standards are in column 10 of Table 4. TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS) [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated NAICS code average average Average Four-firm Gini contract size Current size NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

111110 Soybean Farming .. Factor ...... $0.2 $0.9 $0.1 0.3 0.663 ...... $2.00 $1.00 Size Std...... 2.25 1.75 1.75 1.50 2.25 111120 Oilseed (except Factor ...... 0.3 1.1 0.2 5.5 0.544 ...... 2.00 1.00 Soybean) Farming. Size Std...... 2.75 1.75 2.00 2.75 1.25 111130 Dry Pea and Bean Factor ...... 0.3 1.2 0.2 7.5 0.630 ...... 2.50 1.00 Farming. Size Std...... 2.50 1.75 2.00 3.25 2.00 111140 Wheat Farming ...... Factor ...... 0.2 0.9 0.2 0.4 0.610 ...... 2.00 1.00 Size Std...... 2.25 1.75 2.25 1.50 1.75 111150 Corn Farming ...... Factor ...... 0.4 1.7 0.7 0.2 0.606 ...... 2.25 1.00 Size Std...... 2.75 1.75 3.50 1.50 1.75 111160 Rice Farming ...... Factor ...... 0.8 1.8 0.5 1.5 0.469 ...... 2.25 1.00 Size Std...... 4.00 1.75 3.00 1.75 1.00 111190 Other Grain Farm- Factor ...... 0.5 1.8 0.4 0.3 0.567 ...... 2.00 1.00 ing (includes NAICS Size Std...... 3.25 1.75 2.75 1.50 1.50 111191 and 111199). 111211 Potato Farming ...... Factor ...... 1.6 10.6 1.3 5.8 0.756 ...... 3.75 1.00 Size Std...... 5.00 3.75 5.00 2.75 3.00

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated NAICS code average average Average Four-firm Gini contract size Current size NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

111219 Other Vegetable Factor ...... 0.3 17.8 0.2 3.5 0.943 ...... 3.25 1.00 (except Potato) and Melon Size Std...... 2.50 5.00 2.00 2.25 4.50 Farming. 111310 Orange Groves ...... Factor ...... 0.3 12.2 0.4 11.0 0.856 ...... 3.50 1.00 Size Std...... 2.50 4.00 2.75 4.00 3.75 111320 Citrus (except Or- Factor ...... 0.2 11.1 0.3 22.7 0.892 ...... 3.75 1.00 ange) Groves. Size Std...... 2.25 3.75 2.50 5.00 4.00 111331 Apple Orchards ...... Factor ...... 0.3 16.6 0.4 14.4 0.909 ...... 4.00 1.00 Size Std...... 2.50 5.00 3.00 4.75 4.25 111332 Grape Vineyards .... Factor ...... 0.4 13.9 0.8 4.1 0.877 ...... 3.50 1.00 Size Std...... 2.75 4.25 4.00 2.25 4.00 111333 Strawberry Farming Factor ...... 1.2 19.5 1.7 15.1 0.915 ...... 4.75 1.00 Size Std...... 5.00 5.00 5.00 5.00 4.25 111334 Berry (except Factor ...... 0.1 7.1 0.2 11.1 0.900 ...... 3.25 1.00 Strawberry) Farming. Size Std...... 2.00 3.00 2.00 4.00 4.25 111335 Tree Nut Farming .. Factor ...... 0.3 12.0 0.6 4.5 0.893 ...... 3.25 1.00 Size Std...... 2.50 4.00 3.25 2.50 4.00 111336 Fruit and Tree Nut Factor ...... 0.5 16.5 1.0 31.0 0.955 ...... 4.50 1.00 Combination Farming. Size Std...... 3.00 5.00 4.50 5.00 4.75 111339 Other Noncitrus Factor ...... 0.1 6.8 0.2 7.8 0.869 ...... 3.00 1.00 Fruit Farming. Size Std...... 2.00 2.75 2.00 3.25 4.00 111410 Food Crops Grown Factor ...... 0.5 29.1 0.2 19.6 0.950 ...... 4.00 1.00 Under Cover (includes Size Std...... 3.25 5.00 2.25 5.00 4.50 NAICS 111411 and 111419). 111421 Nursery and Tree Factor ...... 0.2 7.6 0.1 2.5 0.894 ...... 2.75 1.00 Production. Size Std...... 2.25 3.00 2.00 2.00 4.25 111422 Floriculture Produc- Factor ...... 0.3 12.8 0.2 5.8 0.878 ...... 3.25 1.00 tion. Size Std...... 2.75 4.25 2.25 2.75 4.00 111910 Tobacco Farming ... Factor ...... 0.2 1.5 0.2 3.9 0.666 ...... 2.25 1.00 Size Std...... 2.25 1.75 2.00 2.25 2.25 111920 Cotton Farming ...... Factor ...... 0.5 7.2 0.5 6.6 0.572 ...... 2.75 1.00 Size Std...... 3.25 3.00 3.00 3.00 1.50 111930 Sugarcane Farming Factor ...... 2.6 34.0 2.4 28.5 0.719 ...... 4.50 1.00 Size Std...... 5.00 5.00 5.00 5.00 2.75 111940 Hay Farming ...... Factor ...... 0.0 1.5 0.0 1.7 0.840 ...... 2.25 1.00 Size Std...... 1.75 1.75 1.50 1.75 3.75 111990 All Other Crop Factor ...... 0.1 4.6 0.0 1.7 0.973 ¥20.6 2.25 1.00 Farming (includes NAICS Size Std...... 1.75 2.50 1.75 1.75 4.75 1.25 111991, 111992 and 111998). 112111 Beef Cattle Ranch- Factor ...... 0.1 3.1 0.1 1.0 0.859 ...... 2.25 1.00 ing and Farming. Size Std...... 1.75 2.00 1.75 1.50 3.75 112112 Cattle Feedlots ...... Factor ...... 2.8 63.3 2.0 3.9 0.907 ...... 19.50 8.00 Size Std...... 16.00 9.50 17.00 6.00 41.50 112120 Dairy Cattle and Factor ...... 0.9 9.5 1.5 1.3 0.697 ...... 3.25 1.00 Milk Production. Size Std...... 4.50 3.50 5.00 1.75 2.50 112210 Hog and Pig Farm- Factor ...... 1.0 11.4 0.8 2.7 0.803 ...... 3.50 1.00 ing. Size Std...... 5.00 3.75 4.00 2.00 3.50 112310 Chicken Egg Pro- Factor ...... 0.3 17.8 0.3 4.9 0.936 ...... 15.50 16.50 duction. Size Std...... 6.00 8.00 7.50 6.00 41.50 112320 Broilers and Other Factor ...... 1.5 6.0 1.0 2.8 0.386 ...... 3.00 1.00 Meat Type Chicken Pro- Size Std...... 5.00 2.75 4.50 2.00 1.00 duction. 112330 Turkey Production Factor ...... 2.3 8.6 1.4 4.2 0.554 ...... 3.25 1.00 Size Std...... 5.00 3.25 5.00 2.25 1.25 112340 Poultry Hatcheries Factor ...... 10.7 19.6 6.7 5.9 0.493 ...... 3.50 1.00 Size Std...... 5.00 5.00 5.00 2.75 1.00 112390 Other Poultry Pro- Factor ...... 0.1 6.2 0.1 11.0 0.931 ...... 3.25 1.00 duction. Size Std...... 2.00 2.75 1.75 4.00 4.50 112410 Sheep Farming ...... Factor ...... 0.0 3.1 0.0 13.4 0.906 ...... 3.00 1.00 Size Std...... 1.50 2.00 1.50 4.50 4.25 112420 Goat Farming ...... Factor ...... 0.0 0.2 0.0 4.2 0.836 ...... 2.25 1.00 Size Std...... 1.50 1.50 1.50 2.25 3.75 112500 Aquaculture (in- Factor ...... 0.4 7.2 0.4 8.9 0.816 ...... 3.25 1.00 cludes NAICS 112511, Size Std...... 2.75 3.00 2.75 3.50 3.50 112512 and 112519). 112910 Apiculture ...... Factor ...... 0.0 0.7 0.0 6.5 0.882 ...... 2.75 1.00 Size Std...... 1.75 1.50 1.75 3.00 4.00 112920 Horses and Other Factor ...... 0.0 1.0 0.0 3.7 0.900 ...... 2.50 1.00 Equine Production. Size Std...... 1.50 1.75 1.50 2.25 4.25 112930 Fur-Bearing Animal Factor ...... 0.0 1.6 0.0 48.9 0.894 ...... 3.25 1.00 and Rabbit Production. Size Std...... 1.75 1.75 1.50 5.00 4.25 112990 All Other Animal Factor ...... 0.1 5.2 0.1 5.1 0.959 ¥6.9 2.50 1.00 Production. Size Std...... 1.75 2.50 1.75 2.50 4.75 1.00

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated NAICS code average average Average Four-firm Gini contract size Current size NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

113110 Timber Tract Oper- Factor ...... 1.8 19.4 1.0 29.6 0.749 ...... 16.50 12.00 ations. Size Std...... 12.00 8.00 11.50 25.00 19.50 113210 Forest Nurseries Factor ...... 1.4 12.5 0.7 39.2 0.748 ...... 18.00 12.00 and Gathering Forest Prod- Size Std...... 10.00 8.00 10.00 32.50 19.50 ucts. 114111 Finfish Fishing ...... Factor ...... 1.8 72.7 2.3 30.5 0.789 ...... 20.50 22.00 Size Std...... 12.00 10.00 18.50 25.50 26.50 114112 Shellfish Fishing .... Factor ...... 0.8 18.5 0.6 25.9 0.700 ...... 12.50 6.00 Size Std...... 8.00 8.00 9.00 22.00 10.50 114119 Other Marine Fish- Factor ...... 0.8 6.6 0.7 ...... 0.707 ...... 10.00 8.00 ing. Size Std...... 8.00 7.50 10.00 12.00 114210 Hunting and Trap- Factor ...... 0.6 9.8 0.5 ...... 0.666 ...... 7.50 6.00 ping. Size Std...... 7.00 7.50 9.00 6.00 115111 Cotton Ginning ...... Factor ...... 4.3 10.0 3.3 10.2 0.541 ...... 14.00 12.00 Size Std...... 22.00 7.50 24.50 10.00 6.00 115112 Soil Preparation, Factor ...... 1.5 13.6 0.8 7.9 0.684 10.3 8.50 8.00 Planting, and Cultivating. Size Std...... 10.50 8.00 10.50 8.00 7.50 8.00 115113 Crop Harvesting, Factor ...... 1.7 9.5 1.0 18.3 0.704 ...... 12.00 8.00 Primarily by Machine. Size Std...... 11.50 7.50 11.50 16.00 11.50 115114 Postharvest Crop Factor ...... 9.4 191.4 6.3 24.1 0.754 ...... 27.50 30.00 Activities (except Cotton Size Std...... 41.50 13.50 41.00 20.50 20.50 Ginning). 115115 Farm Labor Con- Factor ...... 1.8 15.3 1.0 ...... 0.727 ...... 12.50 16.50 tractors and Crew Leaders. Size Std...... 12.00 8.00 12.00 15.50 115116 Farm Management Factor ...... 1.3 10.5 0.7 17.9 0.743 ...... 13.50 8.00 Services. Size Std...... 10.00 7.50 10.00 16.00 18.50 115210 Support Activities Factor ...... 0.6 24.8 0.3 ...... 0.724 ¥8.9 9.50 8.00 for Animal Production. Size Std...... 7.00 8.00 7.50 15.00 8.00 115310 Support Activities Factor ...... 0.9 11.3 0.4 12.6 0.723 21.3 10.00 8.00 for Forestry. Size Std...... 8.00 7.50 8.00 11.50 14.50 8.00 115310 Except, Forest Fire Factor ...... 3.7 198.9 1.6 27.6 0.867 74.7 23.5 20.5 Suppression. Size Std...... 19.5 17.5 15.0 23.5 41.0 20.5 115310 Except Fuels Man- Factor ...... 3.7 198.9 1.6 27.6 0.867 74.7 23.5 20.5 agement Services. Size Std...... 19.5 17.5 15.0 23.5 41.0 20.5 213112 Support Activities Factor ...... 11.5 4,184.6 9.6 34.2 0.849 10.1 38.0 41.5 for Oil and Gas Operations. Size Std...... 41.5 41.5 41.5 28.5 37.5 41.5 213113 Support Activities Factor ...... 7.2 41.0 5.6 20.5 0.749 ...... 24.0 22.0 for Coal Mining. Size Std...... 34.0 8.5 37.0 18.0 19.5 213114 Support Activities Factor ...... 12.2 236.0 9.4 54.8 0.823 ...... 36.0 22.0 for Metal Mining. Size Std...... 41.5 15.0 41.5 41.5 33.0 213115 Support Activities Factor ...... 2.8 32.1 2.2 34.3 0.708 ...... 18.0 8.0 for Nonmetallic Minerals Size Std...... 16.0 8.5 18.5 28.5 12.0 (except Fuels) Mining. 221310 Water Supply and Factor ...... 2.9 1,023.6 9.6 49.9 0.834 ¥17.0 36.0 30.0 Irrigation Systems. Size Std...... 16.5 41.5 41.5 41.0 35.0 34.5 221320 Sewage Treatment Factor ...... 3.6 142.2 18.2 55.0 0.824 ¥6.9 31.0 22.0 Facilities. Size Std...... 19.5 12.0 41.5 41.5 33.0 22.0 221330 Steam and Air-Con- Factor ...... 43.3 176.2 24.0 60.3 0.678 21.4 26.5 16.5 ditioning Supply. Size Std...... 41.5 13.0 41.5 41.5 6.5 16.5 236115 New Single-Family Factor ...... 1.3 30.8 0.7 2.6 0.667 ...... 8.0 39.5 Housing Construction (ex- Size Std...... 10.0 8.5 9.5 6.0 6.0 cept For-Sale Builders). 236116 New Multifamily Factor ...... 10.9 121.7 3.6 9.4 0.782 ¥3.8 25.5 39.5 Housing Construction (ex- Size Std...... 41.5 11.5 26.5 9.0 25.5 39.5 cept For-Sale Builders). 236117 New Housing For- Factor ...... 5.2 1,172.3 3.5 19.9 0.818 ...... 27.5 39.5 Sale Builders. Size Std...... 26.0 41.5 25.5 17.5 32.0 236118 Residential Remod- Factor ...... 0.7 34.6 0.2 3.4 0.667 ¥62.6 13.5 39.5 elers. Size Std...... 7.5 8.5 7.0 6.0 6.0 41.5 236210 Industrial Building Factor ...... 10.2 351.6 3.5 17.7 0.830 17.0 29.0 39.5 Construction. Size Std...... 41.5 19.0 25.5 15.5 34.0 39.5 236220 Commercial and In- Factor ...... 8.3 515.4 2.6 5.0 0.802 9.4 25.5 39.5 stitutional Building Con- Size Std...... 38.5 24.5 20.5 6.0 29.0 39.5 struction. 237110 Water and Sewer Factor ...... 4.1 98.2 2.0 6.5 0.756 ¥4.1 20.0 39.5 Line and Related Struc- Size Std...... 21.0 10.5 17.5 7.0 21.0 39.5 tures Construction. 237120 Oil and Gas Pipe- Factor ...... 22.8 715.1 10.4 20.8 0.806 4.4 33.0 39.5 line and Related Structures Size Std...... 41.5 31.0 41.5 18.0 30.0 39.5 Construction. 237130 Power and Commu- Factor ...... 9.3 647.7 4.2 18.5 0.824 1.4 31.0 39.5 nication Line and Related Size Std...... 41.5 29.0 30.0 16.0 33.0 39.5 Structures Construction. 237210 Land Subdivision ... Factor ...... 2.7 42.4 6.8 8.1 0.782 ...... 22.0 30.0 Size Std...... 15.5 9.0 41.5 8.0 25.5

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated NAICS code average average Average Four-firm Gini contract size Current size NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

237310 Highway, Street, Factor ...... 12.3 285.7 6.2 6.9 0.779 24.8 28.5 39.5 and Bridge Construction. Size Std...... 41.5 17.0 40.5 7.0 25.0 39.5 237990 Other Heavy and Factor ...... 7.4 458.2 3.9 20.6 0.825 7.8 29.5 39.5 Civil Engineering Construc- Size Std...... 34.5 22.5 28.0 18.0 33.0 39.5 tion. 237990 Except Dredging Factor ...... 42.6 384.2 21.3 55.4 0.744 6.2 32.5 30.0 and Surface Cleanup Ac- Size Std ...... 41.5 20.0 41.5 41.5 18.5.0 30.0 tivities. 238110 Poured Concrete Factor ...... 1.7 53.3 0.6 4.9 0.731 ¥10.3 12.5 16.5 Foundation and Structure Size Std...... 11.5 9.0 9.5 6.0 16.0 20.0 Contractors. 238120 Structural Steel and Factor ...... 3.1 38.3 1.3 7.1 0.720 26.9 13.0 16.5 Precast Concrete Contrac- Size Std...... 17.0 8.5 13.5 7.5 14.0 16.5 tors. 238130 Framing Contrac- Factor ...... 0.8 19.0 0.2 5.0 0.707 ...... 8.5 16.5 tors. Size Std...... 8.0 8.0 7.5 6.0 12.0 238140 Masonry Contrac- Factor ...... 1.0 17.1 0.3 3.1 0.717 ¥4.8 10.5 16.5 tors. Size Std...... 8.5 8.0 8.0 6.0 13.5 16.5 238150 Glass and Glazing Factor ...... 1.7 16.8 0.6 5.2 0.674 ...... 8.0 16.5 Contractors. Size Std...... 11.5 8.0 9.5 6.0 6.0 238160 Roofing Contractors Factor ...... 1.7 35.2 0.6 4.4 0.694 12.0 10.0 16.5 Size Std...... 11.5 8.5 9.0 6.0 9.5 16.5 238170 Siding Contractors Factor ...... 0.7 10.5 0.2 3.1 0.655 ...... 7.0 16.5 Size Std...... 7.5 7.5 7.5 6.0 6.0 238190 Other Foundation, Factor ...... 1.6 34.7 0.5 9.9 0.732 ¥10.2 13.0 16.5 Structure, and Building Ex- Size Std...... 11.0 8.5 9.0 9.5 16.5 20.0 terior Contractors. 238210 Electrical Contrac- Factor ...... 2.0 164.4 0.7 5.1 0.767 ¥1.7 13.5 16.5 tors and Other Wiring In- Size Std...... 12.5 13.0 10.0 6.0 22.5 16.5 stallation Contractors. 238220 Plumbing, Heating, Factor ...... 1.7 123.8 0.5 4.1 0.737 24.0 12.0 16.5 and Air-Conditioning Con- Size Std...... 11.5 11.5 9.0 6.0 17.5 16.5 tractors. 238290 Other Building Factor ...... 4.4 453.7 1.5 24.7 0.775 22.5 19.5 16.5 Equipment Contractors. Size Std...... 22.5 22.5 14.0 21.0 24.0 16.5 238310 Drywall and Insula- Factor ...... 1.7 59.3 0.5 6.0 0.746 ...... 11.5 16.5 tion Contractors. Size Std...... 11.5 9.5 9.0 6.5 19.0 238320 Painting and Wall Factor ...... 0.6 60.6 0.2 6.9 0.697 0.4 10.0 16.5 Covering Contractors. Size Std...... 7.0 9.5 7.0 7.0 10.0 16.5 238330 Flooring Contrac- Factor ...... 0.9 22.4 0.3 5.0 0.718 12.3 10.5 16.5 tors. Size Std...... 8.5 8.0 7.5 6.0 14.0 16.5 238340 Tile and Terrazzo Factor ...... 0.7 10.4 0.3 3.4 0.695 ...... 7.5 16.5 Contractors. Size Std...... 7.5 7.5 7.5 6.0 9.5 238350 Finish Carpentry Factor ...... 0.7 15.1 0.2 2.2 0.686 ...... 7.5 16.5 Contractors. Size Std...... 7.5 8.0 7.0 6.0 8.0 238390 Other Building Fin- Factor ...... 1.4 18.1 0.5 5.1 0.705 ¥13.9 11.0 16.5 ishing Contractors. Size Std...... 10.5 8.0 8.5 6.0 11.5 20.0 238910 Site Preparation Factor ...... 2.0 39.3 0.9 2.1 0.733 19.4 12.0 16.5 Contractors. Size Std...... 12.5 8.5 11.0 6.0 16.5 16.5 238990 All Other Specialty Factor ...... 1.4 113.9 0.5 7.8 0.703 ¥24.4 11.5 16.5 Trade Contractors. Size Std...... 10.0 11.0 9.0 8.0 11.0 20.0

Methodology for Agricultural Size in the Federal Register on July 18, 2019, than those in all other industries with Standards (84 FR 34261)). NDAA 2017 directed receipts-based size standards. Therefore, SBA to establish the size standards for as stated earlier, based on the data, SBA Forty-six industries in Subsectors 111 those industries in the same manner has established $1 million and $5 and 112 currently have the same $1 that the Agency establishes the size million as the minimum and maximum million receipts-based size standard. standards for other industries and to receipts-based size standard levels, These industries previously had a include them in the 5-year rolling respectively, for agricultural industries, $750,000 receipts-based size standard, review under the Jobs Act. Accordingly, as opposed to $6 million as the which was established directly by in this proposed rule, SBA has minimum and $41.5 million as the Congress in section 806 of the Small evaluated those industries using the maximum receipts-based size standard Business Reauthorization Act of 2000, same industry and Federal contracting levels for all other industries. Similarly, Appendix I, Public Law 106–554, 114 factors that it uses in evaluating Stat. 2763, , 2000). characteristics of all other industries SBA rounds a calculated receipts-based Effective August 19, 2019, that size and their size standards. However, the size standard for agricultural industries standard was raised to $1 million by the industry data from the 2012 Agricultural to the nearest $250,000 instead of interim final rule adjusting all monetary Census tabulation reveals that firms in rounding it to the nearest $500,000 as size standards for inflation (published agricultural industries are much smaller for other industries.

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Of the 46 NAICS 6-digit industries in same $1 million size standard, SBA percentile and 80th percentile values of Subsectors 111 and 112, the special cannot compute the 20th percentile and industry factors, SBA computed a size tabulation of the 2012 Census of 80th percentile values from existing size standard for each factor for each Agriculture provided data for 36 standards as for other industries. Given industry. These results are provided in industries at the NAICS 6-digit level. Of the $1 million minimum and $5 million Table 4, above. the remaining ten (10), seven (7) were maximum size standard levels and For the 10 industries for which the aggregated at three different 5-digit calculated size standards being rounded data did not exist at the 6-digit NAICS NAICS levels and three (3) were to the nearest $250,000, SBA derived all level, SBA estimated the size standard aggregated at one 4-digit NAICS level. possible size standards levels (e.g., $1 at the 5- or 4-digit NAICS level at which SBA ranked these 40 industry categories million, $1.25 million, $1.5 million . . . the data were available and applied the (i.e., thirty-six (36) 6-digit, three (3) 3- $4.75 million, and $5 million). Based on same results to the relevant 6-digit digit, and one (1) 4-digit) in terms of these levels, SBA computed $1.75 NAICS levels. These results are shown, each industry factor and obtained the million as the 20th percentile and $4.25 below, in Table 5, Calculated 20th percentile an 80th percentile million as 80th percentile values of size Agricultural Size Standards at the 4- or values for each factor. However, since standards for agricultural industries. 5-Digit NAICS Level Matched to the 6- all those industries currently have the Combining these results with the 20th Digit Level.

TABLE 5—CALCULATED AGRICULTURAL SIZE STANDARDS AT THE 4- OR 5-DIGIT NAICS LEVEL MATCHED TO THE 6-DIGIT LEVEL

Calculated size standard Calculated 4- or 5-digit NAICS code/title ($ million) 6-digit NAICS code/title size standard (see Table 4) ($ million)

11119 Other Grain Farming ...... $2.0 111191 Oilseed and Grain Combination Farming ..... $2.0 111199 All Other Grain Farming ...... 2.0 11141 Food Crops Grown Under Cover ...... 4.0 111411 Mushroom Production ...... 4.0 111419 Other Food Crops Grown Under Cover ...... 4.0 11199 All Other Crop Farming ...... 2.25 111991 Sugar Beet Farming ...... 2.25 111992 Peanut Farming ...... 2.25 111998 All Other Miscellaneous Crop Farming ...... 2.25 1125 Aquaculture ...... 3.25 112511 Finfish Farming and Fish Hatcheries ...... 3.25 112512 Shellfish Farming ...... 3.25 112519 Other Aquaculture ...... 3.25

Evaluation of Size Standards for and in the fiscal year 2019 the size contracts for Forest Fire Suppression Subindustry Categories or ‘‘Exceptions’’ standard was adjusted from $19 million and Fuels Management Services in In accordance with SBA’s approach to to $20.5 million (84 FR 34261 (July 18, FPDS–NG to identify principal activities evaluating size standards for 2019)). related to forest fire suppression and subindustry categories (or The data from the Census Bureau’s fuel management services and to ‘‘exceptions’’), SBA has evaluated the and NASS’ special tabulations are differentiate them from other support three (3) exceptions covered by this rule limited to the 6-digit NAICS industry activities for forestry. SBA identified using the procedures described in the level, and hence, do not provide activities associated with specialized revised SBA’s Methodology. The results separate data to evaluate a size standard crews, equipment and engines with of that analysis are discussed in the at the subindustry level. As such, SBA trained personnel that are critical to following two subsections. relied upon data from other sources to perform the tasks of suppressing or evaluate the current $20.5 million size managing fires as principal activities Forest Fire Suppression and Fuel standard for both exceptions. and other activities, such as leases of Management Services Firms engaged in the Forest Fire equipment, machinery and Forest Fire Suppression and Fuels Suppression and Fuels Management transportation vehicles, or provision of Management Services are subindustry Services subindustries were identified services that do not require specialized categories or exceptions under NAICS from the contracting data reported in personnel or training as supporting 115310 (Support Activities for Forestry) FPDS–NG during fiscal years 2016– activities. Since most firms involved in with the current size standard of $20.5 2018. Specifically, the contracts under Fire Suppression Services were also million in average annual receipts. In Forest Fire Suppression and Fuels found to be involved in Fuels 2003, SBA established a different size Management Services exceptions can be Management Services and vice versa, standard for these subindustry activities identified as those classified within SBA analyzed the two as one (68 FR 33348 (, 2003)). In 2013, NAICS 115310 under the Product subindustry category. as part of the first 5-year review of size Service Code (PSC) F003 (Natural Finally, SBA obtained receipts and standards under the Jobs Act, SBA Resources/Conservation—Forest-Range employment data for the fiscal years initially maintained $17.5 million as the Fire Suppression/Presuppression). SBA 2016–2018 from FPDS–NG and from the size standard for these exceptions (78 also evaluated the contract data from the System for Award Management (SAM) FR 37398 (June 20, 2013)), and USDA Forest Service National to develop industry and Federal subsequently, as part of the adjustment Interagency Fire Center (https:// contracting factors for evaluating the to monetary-based size standards for www.fs.fed.us/managing-land/fire and size standard for the two exceptions. inflation, the Agency increased the size http://www.fs.fed.us/business/incident/ SBA chose firms with receipts greater standard from $17.5 million to $19 vipr.php). SBA also evaluated the than zero and less than $1 billion. Firms million (79 FR 33647 (, 2014)), description of requirements of the with receipts greater than $1 billion are

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outliers and their revenues would skew to evaluate the current $30.0 million of all firms found in the NDC and DCA the data. Similarly, firms with receipts size standard for Dredging. reports, except a few that received at or below zero have insignificant SBA identified firms engaged in the contracts in industries other than contributions to total Federal contract Dredging subindustry using the contract NAICS 237990 or in PSCs other than dollars obligated to the industry. Table awards data within NAICS 237990 in those described above. FPDS–NG for fiscal years 2016–2018. 4, above, shows the results from the Table 4, above, shows the results from analysis of these subindustries, which Specifically, dredging contracts were the analysis of the Dredging subindustry supported a $23.5 million size standard identified as those classified under one that support raising the current $30.0 as compared to the current $20.5 of the following Product Service Codes million size standard for the Dredging million. Given the inherent uncertainty (PSCs): C1KF—Architect and of occurrences of forest fires and recent Engineering Construction—Dredging exception to $33.0 million. As also surges in forest fire incidents and Facilities; M1KF—Operation of shown in Table 4, the results for overall extended fire seasons, SBA believes that Dredging Facilities; X1KF—Lease/ NAICS 237990 yields a smaller contracting officers need to have Rental of Dredging Facilities; Y1KF— calculated size standard of $29.5 million flexibility to be able to hire enough Construction of Dredging Facilities; as compared to the current standard of small businesses, especially in the Z1KF—Maintenance of Dredging $39.5 million. Thus, the analytical worst-case scenario. SBA estimates that Facilities; Z2KF—Repair or alternation results from the latest available industry in a very busy season, it is not of Dredging Facilities; and 1955— and Federal contracting data seem to implausible to assume 120 days of 14 Dredges. SBA obtained receipts and suggest that a separate size standard is hours shifts. Assuming an average price employment data for the identified still warranted for Dredging. of $43 dollars per person per hour, a Dredging firms from the System for Historically, the Dredging exception size total amount of about $6 million could Award Management (SAM) and FPDS– standard has been lower than the overall be awarded to a firm with an average NG to develop industry and Federal NAICS 237990 size standard, but the number of 4 crews. In the case of firms contracting factors for Dredging. SBA latest results suggest otherwise. As such, with 15 crews, the amount could reach excluded from the analysis firms for in this proposed rule, SBA is proposing $22.0 million. Both numbers include which Dredging Federal contracts to retain current size standard for the only payments to firefighters for direct dollars accounted for a very small overall NAICS 237990 and increase the fire suppression activities; in other percentage of their average annual size standard of the Dredging words, here we did not consider in the receipts. SBA also excluded from the subindustry to $33.0 million and analysis additional payments, such as analysis contracts awarded under PSCs seeking comment on the proposal. payments for fire engines, water tenders, C1KF and X1KF and firms receiving Additionally, SBA is seeking comments etc. With this reality in mind, SBA such contracts as contract dollars under on whether Dredging and Surface proposes to increase the size standard those PSCs were very small. After these Cleanup Activities should continue to for the Forest Fire Suppression and exclusions, SBA evaluated the data for be treated as an exception or on whether Fuels Management Services exceptions a total of 100 Dredging firms that have it should be eliminated and subject to to $25 million, above the current size received Federal contracts under NAICS the same overall NAICS 237990 size standard of $20.5 million and the 237990 and the above PSCs during fiscal standard. calculated size standard of $23.5 million years 2016–2018. and seeks comments on this proposal. SBA also looked at the Dredging Summary of Calculated Size Standards contracting information from the US Dredging and Surface Cleanup Army Corps of Engineers’ Navigation Of the one hundred (100) industries Activities and Civil Works Decision Support and three (3) subindustries (exceptions) The Dredging and Surface Cleanup Center (NDC) (https:// reviewed in this proposed rule, the Activities (Dredging) size standard is an www.iwr.usace.army.mil/About/ results from analyses of the latest exception established by SBA within Technical-Centers/NDC-Navigation- available data on the five primary the 6-digit NAICS code 237990 (Other and-Civil-Works-Decision-Support/), as factors from Table 4, Size Standards Heavy and Civil Engineering well as the annual reports from Supported by Each Factor for Each Construction). As stated previously, the Dredging Contractors of America (DCA) Industry (millions of dollars), above, data from the Census Bureau’s special (www.dredgingcontractors.org). would support increasing size standards tabulation of the Economic Census is However, those sources do not provide for sixty-five (65) industries and three limited to the 6-digit NAICS industry information on business size and seem (3) subindustries, and decreasing size level, and hence, does not provide to include a smaller number of dredging standards for thirty-five (35) industries. separate data at the subindustry level to firms as compared to the number of Table 6, Summary of Calculated Size evaluate exceptions. Accordingly, SBA Dredging firms found in FPDS–NG. Standards, summarizes these results by relied upon the data from other sources SBA’s analysis included a vast majority NAICS sector.

TABLE 6—SUMMARY OF CALCULATED SIZE STANDARDS

Number Number Number Number of size of size of size of size NAICS sector Sector name standards standards standards standards reviewed increased decreased unchanged

11 ...... Agriculture, Forestry, Fishing and Hunting ...... 64 60 4 0 21 ...... Mining, Quarrying, and Oil and Gas Extraction ...... 4 3 1 0 22 ...... Utilities ...... 3 3 0 0 23 ...... Construction ...... 32 2 30 0

All Sectors ...... 103 68 35 0

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Evaluation of SBA Loan Data territories, and the District of Columbia. economic decline. A variety of With the COVID–19 emergency, many economic indicators such as the Gross Before proposing or deciding on an small businesses nationwide are Domestic Product (GDP) and the industry’s size standard revision, SBA experiencing economic hardship as a unemployment rate shows that this also considers the impact of size direct result of the Federal, State, and recession is significantly worse than any standards revisions on SBA’s loan local public health measures that are other recession since World War II. The programs. Accordingly, SBA examined being taken to minimize the public’s GDP decreased nearly 5 percent, and the its internal 7(a) and 504 loan data for exposure to the virus. These measures, Personal consumption in goods and fiscal years 2016–2018 to assess whether some of which are government- services decreased 6.8 percent in the the calculated size standards in Table 4 mandated, are being implemented first quarter of 2020; in May 2020, (above) need further adjustments to nationwide and include the closures of personal income decreased 4.2 percent ensure credit opportunities for small restaurants, bars, and gyms. In addition, and the unemployment rate increased businesses through those programs. For based on the advice of public health from 3.5 percent in February 2020 to the industries reviewed in this rule, the officials, other measures, such as 11.1 percent in June 2020, and, also for data shows that it is mostly businesses keeping a safe distance from others or the month of June 2020, Non-farm much smaller than the current or even stay-at-home orders, are being payroll decreased by 15 million since proposed size standards that receive implemented, resulting in a dramatic February 2020. Specifically for the SBA’s 7(a) and 504 loans. For example, decrease in economic activity as the sectors evaluated in this proposed rule, for industries covered by this rule, more public avoids malls, retail stores, and more recent data in June 2020 shows than 95.6 percent of 7(a) and 504 loans other businesses. that the unemployment rate for in fiscal years 2016–2018 went to The Coronavirus Aid, Relief, and Agriculture and related private wage businesses below the current or Economic Security Act (the CARES Act and salary workers was 5.4 percent, but proposed size standards. or the Act) (Pub. L. 116–136) was signed the sector of Mining, quarrying, and oil Proposed Changes to Size Standards on , 2020, to provide and gas extraction shows an emergency assistance and health care unemployment rate of 17.8 percent and Based on the analytical results in response for individuals, families, and Table 4 and considerations of impacts of the construction sector, 10.1 percent. In businesses affected by the coronavirus June 2019, the unemployment rates for calculated size standards in terms of pandemic. Section 1102 of the Act access by currently small businesses to these sectors were 5.9, 3.2 and 4 temporarily permits SBA to guarantee percent, respectively. The latest Federal SBA’s loans, as discussed above, of a 100 percent of 7(a) loans under a new total of one hundred three (103) Reserve Board’s Monetary Policy Report program titled the Paycheck Protection shows that in general the most impacted industries or subindustries (exceptions) Program (PPP). Section 1106 of the Act with receipts-based size standards in firms in these sectors are small provides for forgiveness of up to the full businesses.1 Sectors 11, 21, 22 and 23 that are principal amount of qualifying loans covered by this rule, and considering guaranteed under the PPP. The PPP and Accordingly, in view of above impacts the current situation due to the COVID– loan forgiveness are intended to provide on small businesses from the COVID–19 19 related national emergency and its economic relief to small businesses pandemic and Federal government impacts on small businesses and the nationwide adversely impacted under efforts to provide relief to small overall economy, SBA proposes to the COVID–19. On , 2020, businesses and support to the overall increase size standards for 68 industries additional funding for the CARES Act, economy, SBA proposes to adopt or subindustries, and retain the current including for the PPP, was provided. increases to size standards for 68 size standards for the remaining 35 The Agency is following closely the industries and retain the current size industries. development of the pandemic and the standards for 35 industries for which economic situation and recovery. The analytical results suggested their size Special Considerations consequence of the initial response of standards could be lowered. On , 2020, the ongoing the public to the COVID–19 pandemic The proposed size standards are Coronavirus Disease 2019 (COVID–19) as well as the different measures taken presented in Table 7, Proposed Size was declared a pandemic of enough by the Government to contain it (e.g. Standards Revisions. Also presented in severity and magnitude to warrant an stay at home orders, social distancing, Table 7 are current and calculated size emergency declaration for all states, etc.) have resulted in the present standards for comparison.

TABLE 7—PROPOSED SIZE STANDARDS REVISIONS

Current Calculated Proposed size size size NAICS code NAICS industry title standard standard standard ($ million) ($ million) ($ million)

111110 ...... Soybean Farming ...... $1.0 $2.0 $2.0 111120 ...... Oilseed (except Soybean) Farming ...... 1.0 2.0 2.0 111130 ...... Dry Pea and Bean Farming ...... 1.0 2.5 2.5 111140 ...... Wheat Farming ...... 1.0 2.0 2.0 111150 ...... Corn Farming ...... 1.0 2.25 2.25 111160 ...... Rice Farming ...... 1.0 2.25 2.25 111191 ...... Oilseed and Grain Combination Farming ...... 1.0 2.0 2.0 111199 ...... All Other Grain Farming ...... 1.0 2.0 2.0

1 Board of Governors of the Federal Reserve and U.S. Census Bureau’s Small Business Pulse information on participation in small business- System (June 2020), Monetary Policy Report, p. 24 Survey (https://portal.census.gov/pulse/data). The specific initiatives such as the PPP. (see https://www.federalreserve.gov/ latest is a recent survey created by the Census monetarypolicy/files/20200612_mprfullreport.pdf) Bureau to provide high-frequency, detailed

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TABLE 7—PROPOSED SIZE STANDARDS REVISIONS—Continued

Current Calculated Proposed size size size NAICS code NAICS industry title standard standard standard ($ million) ($ million) ($ million)

111211 ...... Potato Farming ...... 1.0 3.75 3.75 111219 ...... Other Vegetable (except Potato) and Melon Farming ...... 1.0 3.25 3.25 111310 ...... Orange Groves ...... 1.0 3.5 3.5 111320 ...... Citrus (except Orange) Groves ...... 1.0 3.75 3.75 111331 ...... Apple Orchards ...... 1.0 4.0 4.0 111332 ...... Grape Vineyards ...... 1.0 3.5 3.5 111333 ...... Strawberry Farming ...... 1.0 4.75 4.75 111334 ...... Berry (except Strawberry) Farming ...... 1.0 3.25 3.25 111335 ...... Tree Nut Farming ...... 1.0 3.25 3.25 111336 ...... Fruit and Tree Nut Combination Farming ...... 1.0 4.5 4.5 111339 ...... Other Noncitrus Fruit Farming ...... 1.0 3.0 3.0 111411 ...... Mushroom Production ...... 1.0 4.0 4.0 111419 ...... Other Food Crops Grown Under Cover ...... 1.0 4.0 4.0 111421 ...... Nursery and Tree Production ...... 1.0 2.75 2.75 111422 ...... Floriculture Production ...... 1.0 3.25 3.25 111910 ...... Tobacco Farming ...... 1.0 2.25 2.25 111920 ...... Cotton Farming ...... 1.0 2.75 2.75 111930 ...... Sugarcane Farming ...... 1.0 4.5 4.5 111940 ...... Hay Farming ...... 1.0 2.25 2.25 111991 ...... Sugar Beet Farming ...... 1.0 2.25 2.25 111992 ...... Peanut Farming ...... 1.0 2.25 2.25 111998 ...... All Other Miscellaneous Crop Farming ...... 1.0 2.25 2.25 112111 ...... Beef Cattle Ranching and Farming ...... 1.0 2.25 2.25 112112 ...... Cattle Feedlots ...... 8.0 19.5 19.5 112120 ...... Dairy Cattle and Milk Production ...... 1.0 3.25 3.25 112210 ...... Hog and Pig Farming ...... 1.0 3.5 3.5 112310 ...... Chicken Egg Production ...... 16.5 15.5 16.5 112320 ...... Broilers and Other Meat Type Chicken Production ...... 1.0 3.0 3.0 112330 ...... Turkey Production ...... 1.0 3.25 3.25 112340 ...... Poultry Hatcheries ...... 1.0 3.5 3.5 112390 ...... Other Poultry Production ...... 1.0 3.25 3.25 112410 ...... Sheep Farming ...... 1.0 3.0 3.0 112420 ...... Goat Farming ...... 1.0 2.25 2.25 112511 ...... Finfish Farming and Fish Hatcheries ...... 1.0 3.25 3.25 112512 ...... Shellfish Farming ...... 1.0 3.25 3.25 112519 ...... Other Aquaculture ...... 1.0 3.25 3.25 112910 ...... Apiculture ...... 1.0 2.75 2.75 112920 ...... Horses and Other Equine Production ...... 1.0 2.5 2.5 112930 ...... Fur-Bearing Animal and Rabbit Production ...... 1.0 3.25 3.25 112990 ...... All Other Animal Production ...... 1.0 2.5 2.5 113110 ...... Timber Tract Operations ...... 12.0 16.5 16.5 113210 ...... Forest Nurseries and Gathering of Forest Products ...... 12.0 18.0 18.0 114111 ...... Finfish Fishing ...... 22.0 20.5 22.0 114112 ...... Shellfish Fishing ...... 6.0 12.5 12.5 114119 ...... Other Marine Fishing ...... 8.0 10.0 10.0 114210 ...... Hunting and Trapping ...... 6.0 7.5 7.5 115111 ...... Cotton Ginning ...... 12.0 14.0 14.0 115112 ...... Soil Preparation, Planting, and Cultivating ...... 8.0 8.5 8.5 115113 ...... Crop Harvesting, Primarily by Machine ...... 8.0 12.0 12.0 115114 ...... Postharvest Crop Activities (except Cotton Ginning) ...... 30.0 27.5 30.0 115115 ...... Farm Labor Contractors and Crew Leaders ...... 16.50 12.5 16.5 115116 ...... Farm Management Services ...... 8.0 13.5 13.5 115210 ...... Support Activities for Animal Production ...... 8.0 9.5 9.5 115310 ...... Support Activities for Forestry ...... 8.0 10.0 10.0 Except ...... Fire Suppression Services ...... 20.5 23.5 25.0 Except ...... Fuels Management Services ...... 20.5 23.5 25.0 213112 ...... Support Activities for Oil and Gas Operations ...... 41.5 38.0 41.5 213113 ...... Support Activities for Coal Mining ...... 22.0 24.0 24.0 213114 ...... Support Activities for Metal Mining ...... 22.0 36.0 36.0 213115 ...... Support Activities for Nonmetallic Minerals (except Fuels) Mining ...... 8.0 18.0 18.0 221310 ...... Water Supply and Irrigation Systems ...... 30.0 36.0 36.0 221320 ...... Sewage Treatment Facilities ...... 22.0 31.0 31.0 221330 ...... Steam and Air-Conditioning Supply ...... 16.5 26.5 26.5 236115 ...... New Single-Family Housing Construction (except For-Sale Builders) ...... 39.5 8.0 39.5 236116 ...... New Multifamily Housing Construction (except For-Sale Builders) ...... 39.5 25.5 39.5 236117 ...... New Housing For-Sale Builders ...... 39.5 27.5 39.5 236118 ...... Residential Remodelers ...... 39.5 13.5 39.5 236210 ...... Industrial Building Construction ...... 39.5 29.0 39.5 236220 ...... Commercial and Institutional Building Construction ...... 39.5 25.5 39.5

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TABLE 7—PROPOSED SIZE STANDARDS REVISIONS—Continued

Current Calculated Proposed size size size NAICS code NAICS industry title standard standard standard ($ million) ($ million) ($ million)

237110 ...... Water and Sewer Line and Related Structures Construction ...... 39.5 20.0 39.5 237120 ...... Oil and Gas Pipeline and Related Structures Construction ...... 39.5 33.0 39.5 237130 ...... Power and Communication Line and Related Structures Construction ...... 39.5 31.0 39.5 237210 ...... Land Subdivision ...... 30.0 22.0 30.0 237310 ...... Highway, Street, and Bridge Construction ...... 39.5 28.5 39.5 237990 ...... Other Heavy and Civil Engineering Construction ...... 39.5 29.5 39.5 Except ...... Dredging and Surface Clean-Up Activities ...... 30.0 32.5 32.5 238110 ...... Poured Concrete Foundation and Structure Contractors ...... 16.5 12.5 16.5 238120 ...... Structural Steel and Precast Concrete Contractors ...... 16.5 13.0 16.5 238130 ...... Framing Contractors ...... 16.5 8.5 16.5 238140 ...... Masonry Contractors ...... 16.5 10.5 16.5 238150 ...... Glass and Glazing Contractors ...... 16.5 8.0 16.5 238160 ...... Roofing Contractors ...... 16.5 10.0 16.5 238170 ...... Siding Contractors ...... 16.5 7.0 16.5 238190 ...... Other Foundation, Structure, and Building Exterior Contractors ...... 16.5 13.0 16.5 238210 ...... Electrical Contractors and Other Wiring Installation Contractors ...... 16.5 13.5 16.5 238220 ...... Plumbing, Heating, and Air-Conditioning Contractors ...... 16.5 12.0 16.5 238290 ...... Other Building Equipment Contractors ...... 16.5 19.5 19.5 238310 ...... Drywall and Insulation Contractors ...... 16.5 11.5 16.5 238320 ...... Painting and Wall Covering Contractors ...... 16.5 10.0 16.5 238330 ...... Flooring Contractors ...... 16.5 10.5 16.5 238340 ...... Tile and Terrazzo Contractors ...... 16.5 7.5 16.5 238350 ...... Finish Carpentry Contractors ...... 16.5 7.5 16.5 238390 ...... Other Building Finishing Contractors ...... 16.5 11.0 16.5 238910 ...... Site Preparation Contractors ...... 16.5 12.0 16.5 238990 ...... All Other Specialty Trade Contractors ...... 16.5 11.5 16.5

Table 8, Summary of Proposed Size summarizes the proposed changes to Standards Revisions by Sector, below, size standards by NAICS sector.

TABLE 8—SUMMARY OF PROPOSED SIZE STANDARDS REVISIONS BY SECTOR

Size Size Size NAICS Sector Sector name standards standards standards increased lowered maintained

11 ...... Agriculture, Forestry, Fishing and Hunting ...... 60 0 4 21 ...... Mining, Quarrying, and Oil and Gas Extraction ...... 3 0 1 22 ...... Utilities ...... 3 0 0 23 ...... Construction ...... 2 0 30

All Sectors ...... 68 0 35

Evaluation of Dominance in Field of Alternatives Considered and resultant economic impacts on small businesses, all current size Operation By law, SBA is required to develop standards where the data suggested numerical size standards for SBA has determined that for the lowering is appropriate. industries which it has evaluated in this establishing eligibility for Federal small business assistance programs and to Nonetheless, SBA considered two proposed rule, no individual firm at or other alternatives. Alternative option below the proposed size standard would review every five years all size standards and make necessary one was to propose changes exactly as be large enough to dominate its field of adjustments to reflect the current suggested by the analytical results. operation. At the proposed size industry structure and Federal market Alternative option two was to retain all standards levels, if adopted, the small conditions. Other than varying the current size standards. business share of total industry receipts levels of size standards by industry and Alternative option one would cause a among those industries would be, on changing the measures of size standards substantial number of currently small average, 1.1 percent, varying from 0.003 (e.g., using annual receipts vs. the businesses to lose their small business percent to 30.5 percent. These market number of employees), no practical status and hence to lose their access to shares effectively preclude a firm at or alternatives exist to the systems of Federal small business assistance, below the proposed size standards from numerical size standards. especially small business set-aside exerting control on any of the The proposal is to increase size contracts and SBA’s financial assistance industries. standards where the data suggested in some cases. During the first 5-year increases are warranted, and to retain, review of size standards, some in response to COVID–19 emergency commenters had expressed concerns

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about SBA’s policy of not lowering size approach as the current economic factors differently than others should standards based on the analytical situation evolves. include suggested weights for each results. factor along with supporting facts and Request for Comments As part of option one, SBA also analysis. considered increasing 68 size standards SBA invites public comments on this 6. For evaluating the size standards as suggested by the analytical results proposed rule, especially on the for the Forest Fire Suppression and Fuel and mitigating the impact of the following issues: Management Services subindustries decreases to size standards by adjusting 1. SBA seeks feedback on whether (‘‘exceptions’’) within NAICS 115310, the calculated sizes considering the SBA’s proposal to increase 68 size SBA used PSC F003 (Forest/Range Fire impact on small business access to standards and retain 35 size standards is Suppression/Presuppression Services) Federal contracting and loans. However, appropriate given the results from the within NAICS 115310 in FPDS–NG to latest available industry and Federal in the present situation with the global identify firms engaged in the Forest Fire contracting data of each industry and COVID–19 pandemic resulting in high Suppression and Fuel Management subindustry (exception) reviewed in this levels of risk and dramatic reductions in Services exceptions during fiscal years proposed rule, along with ongoing economic activity of unprecedented 2016–2018. Using the receipts and uncertainty and dramatic contraction in nature, SBA presents the impacts of employment data for those firms, SBA economic activity due to the global adopting the analytical results without analyzed the industry and Federal COVID–19 pandemic. SBA also seeks adjustment in alternative option one contracting factors for these suggestions, along with supporting facts and proposes to retain all size standards subindustries. SBA seeks suggestions or and analysis, for alternative standards, if for which the evaluation of principal comments on data sources it used and they would be more appropriate than its proposal to increase the current factors suggested reductions, and to the proposed size standards. adopt only the increases suggested by $20.5 million size standard for both 2. SBA also seeks comments on exceptions to $25 million even if the the evaluation. SBA will adopt this whether SBA should not lower any size approach temporarily and may analysis supported an increase to $23.5 standards in view of COVID–19 million. SBA is also interested in reevaluate this approach as the pandemic and its adverse impacts on economic situation evolves. comments on the possible elimination small businesses as well as on the of the Forest Fire Suppression and Fuel Under option two, given the current overall economic situation when Management Services as ‘‘exceptions’’ COVID–19 Pandemic, SBA considered analytical results suggest some size to NAICS 115310, and the application of retaining the current level of all size standards could be lowered. SBA the same general size standard for standards even though the current believes that lowering size standards NAICS 115310. Comments on applying analysis may suggest changing them. under the current economic the same NAICS 115310 size standard SBA considers that the option of environment would run counter to what for Forest Fire Suppression and Fuel retaining all size standards at this Congress and the Federal government management Services should address moment provides the opportunity to are doing to aid and provide relief to the why the same size standard is more reassess the economic situation once the nation’s small businesses impacted by suitable than separate size standards for economic recovery starts. Under this the COVID–19 pandemic. Forest Fire Suppression and Fuel option, as the current situation 3. Given the uncertainty produced by Management Services or why firms develops, SBA will be able to assess the global COVID–19 pandemic and the engaged in Forest Fire Suppression and new data available on economic economic consequences, SBA would Fuel Management Services should indicators, federal procurement, and like to receive comments from the continue to be treated as separate SBA loans as well, before adopting public on the possibility of lowering activities from the rest of NAICS 115310 changes to size standards. However, size standards while mitigating the for SBA’s size standards purposes. SBA is not adopting option two because consequences of the lower standards, 7. For evaluating the size standard for the Regulatory Impact Analysis shows instead of not lowering any size the Dredging and Surface Cleanup that retaining all size standards at their standards. Activities (Dredging), a subindustry current levels is more onerous for the 4. In accordance with NDAA 2017, in (‘‘exception’’) category within NAICS small businesses than the option of this proposed rule, SBA has evaluated code 237990, SBA used relevant PSCs adopting 68 increases and retaining 35 46 agricultural industries for which the within NAICS code 237990 to identify size standards. Additionally, SBA size standards were previously Dredging contracts in FPDS–NG and regards size standards evaluation of 46 established directly by Congress and firms receiving such contracts during agricultural industries for the first time proposed a new size standard for each fiscal years 2016–2018. Using the as one of the most important of those industries. SBA seeks receipts and employment data for those contributions of our current comments on the methodology and data firms from FPDS–NG, SBA analyzed the comprehensive size standards review, sources it used to develop such industry and Federal contracting factor and postponing the adoption of the proposed standards as well as on the for this subindustry. SBA seeks calculated size standards should be appropriateness of the proposed size suggestions or comments on the use of detrimental for the small businesses standards levels. the data sources and the proposed size within those industries. Finally, given 5. In calculating the overall industry standard. SBA is also interested in the inherent uncertainty of occurrences size standard, SBA has assigned equal comments on the elimination of the of fires, the recent surges in forest fire weight to each of the five primary subindustry category for Dredging, and incidents and the extended fire seasons, factors in all industries and the application of the same size SBA believes that not proposing the subindustries covered by this proposed standard as for overall NAICS 237990. increases in size standards for the rule. SBA seeks feedback on whether it Comments on applying the same NAICS NAICS 115310 in general and its two should assign equal weight to each 237990 size standard for Dredging exceptions will adversely affect the factor or on whether it should give more should address the basis for why that availability of small businesses for these weight to one or more factors for certain industry size standard is more suitable tasks, especially in the worst-case industries or subindustries. than a specific dredging subindustry scenarios. SBA may reevaluate this Recommendations to weigh some size standard or why dredging firms

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should continue to be evaluated as a commenters provide information on the in this rule will make size standards discrete subindustry for SBA’s size size of contracts in their industries, the more reflective of the current economic standards purposes. size of businesses that can undertake the characteristics of businesses in those 8. In addition to comments on its contracts, start-up costs, equipment and industries and the latest trends in proposal to increase the size standard other asset requirements, the amount of Federal marketplace. for the Dredging exception from the subcontracting, other direct and indirect SBA’s mission is to aid and assist current $30.0 million to $33.0 million, costs associated with the contracts, the small businesses through a variety of SBA also seeks comments regarding the use of mandatory sources of supply for financial, procurement, business requirement for a dredging concern to products and services, and the degree to development and counseling, and qualify as small on a Federal which contractors can mark up those disaster assistance programs. To procurement that it or its similarly costs. determine the actual intended situated subcontractors must perform at beneficiaries of these programs, SBA least 40 percent of the volume dredged Compliance With Executive Orders establishes numerical size standards by with its own equipment or equipment 12866 and 13771, the Regulatory industry to identify businesses that are owned by another small dredging Flexibility Act (5 U.S.C. 601–612), deemed small. concern (see Footnote 2 in 13 CFR Executive Orders 13563, 12988, and The proposed revisions to the existing 121.201). This requirement has been in 13132, and the Paperwork Reduction size standards for 103 industries in SBA’s small business size regulations Act (44 U.S.C. Ch. 35) NAICS Sectors 11, 21, 22 and 23 are since 1974 (see 30 FR 24669, , Executive Order 12866 consistent with SBA’s statutory 1974 and 39 FR 31302, , 1974) mandates to help small businesses grow and was interpreted by SBA’s Office of The Office of Management and Budget and create jobs and to review and adjust Hearings and Appeals to encompass (OMB) has determined that this size standards every five years. This subcontractors in Size Appeal of U.S. proposed rule is a significant regulatory regulatory action promotes the Army Corps of Engineers, SBA No. SIZ– action for purposes of Executive Order Administration’s goals and objectives as 5915 (2018). This proposed rule retains 12866. Accordingly, in the next section well as meets the SBA’s statutory the requirement set forth in Footnote 2 SBA provides a Regulatory Impact responsibility. One of SBA’s goals in in order to ensure that small Dredging Analysis of this proposed rule, support of promoting the firms or their similarly situated including: (1) A statement of the need Administration’s objectives is to help subcontractors perform a significant and for the proposed action, (2) an small businesses succeed through fair meaningful portion of a Dredging examination of alternative approaches, and equitable access to capital and project set aside for small business. and (3) an evaluation of the benefits and credit, Federal Government contracts However, SBA requests comments as to costs—both quantitative and and purchases, and management and whether that footnote is still necessary. qualitative—of the proposed action and technical assistance. Reviewing and Comments pertaining to this the alternatives considered. However, modifying size standards, when requirement should address: (1) this rule is not a ‘‘major rule’’ under the appropriate, ensures that intended Whether there continues to be a need to Congressional Review Act, 5 U.S.C. 800. beneficiaries are able to access Federal retain the current 40 percent equipment Regulatory Impact Analysis small business programs that are requirement under current industry designed to assist them to become practices; (2) whether the 40 percent 1. What is a need for this regulatory competitive and create jobs. equipment requirement should be action? 2. What are the potential benefits and revised, and if so, the rationale for an Under the Small Business Act (Act) costs of this regulatory action? alternative percentage; and (3) whether (15 U.S.C. 632(a)), SBA’s Administrator OMB directs agencies to establish an a different and more verifiable is responsible for establishing small appropriate baseline to evaluate any requirement based on an alternative business size definitions (or ‘‘size benefits, costs, or transfer impacts of measure (such as value of contract or standards’’) and ensuring that such regulatory actions and alternative personnel involved) may achieve the definitions vary from industry to approaches considered. The baseline same objective of ensuring that small industry to reflect differences among should represent the agency’s best businesses perform significant and various industries. The Jobs Act requires assessment of what the world would meaningful work on dredging contracts SBA to review every five years all size look like absent the regulatory action. set aside for small businesses. standards and make necessary For a new regulatory action 9. Finally, SBA seeks comments on adjustments to reflect current industry promulgating modifications to an data sources it used to examine industry and Federal market conditions. This existing regulation (such as modifying and Federal market conditions, as well proposed rule is part of the second 5- the existing size standards), a baseline as suggestions on relevant alternative year review of size standards in assuming no change to the regulation data sources that the Agency should accordance with the Jobs Act. The first (i.e., making no changes to current size evaluate in reviewing or modifying size 5-year review of size standards was standards) generally provides an standards for industries covered by this completed in early 2016. Such periodic appropriate benchmark for evaluating proposed rule. reviews of size standards provide SBA benefits, costs, or transfer impacts of Public comments on the above issues with an opportunity to incorporate proposed regulatory changes and their are very valuable to SBA for validating ongoing changes to industry structure alternatives. its proposed size standards revisions in and Federal market environment into this proposed rule. Commenters size standards and to evaluate the Proposed Changes to Size Standards addressing size standards for a specific impacts of prior revisions to size Based on the results from analysis of industry or a group of industries should standards on small businesses. This also latest industry and Federal contracting include relevant data and/or other provides SBA with an opportunity to data, as well as consideration of impact information supporting their comments. seek and incorporate public input to the of size standards changes on small If comments relate to the application of size standards review and analysis. SBA businesses and significant adverse size standards for Federal procurement believes that proposed size standards impacts of the COVID–19 emergency on programs, SBA suggests that revisions for industries being reviewed small businesses and the overall

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economic activity, of the total of 103 2.7 million businesses in industries in dollars awarded during the period industries in Sectors 11, 21, 22 and 23 Sectors 11, 21, 22, and 23 for which considered, 83.4 percent were awarded that have receipts-based size standards, SBA proposes to increase their receipts- through various small business set-aside SBA proposes to increase size standards based size standards, 96.9 percent are programs and 16.6 percent were for 68 industries (including exceptions), considered small under the current size awarded through non-set aside and maintain current size standards for standards. That percentage varies from contracts. Based on the SBA’s internal the remaining 35 industries. 95.5 percent in Sector 21 to 98.5 percent data on its loan programs for fiscal years The Baseline in Sector 23. Based on the data from 2016–2018, small businesses in those FPDS–NG for fiscal years 2016–2018, For purposes of this regulatory action, industries received, on an annual basis, about 17,300 unique firms in those the baseline represents maintaining the a total of nearly 8,300 7(a) and 504 loans ‘‘status quo,’’ i.e., making no changes to industries received at least one Federal in that period, totaling about $2.4 the current size standards. Using the contract during that period, of which billion, of which 89 percent was issued number of small businesses and levels 86.4 percent were small under the through the 7(a) program and 11 percent of benefits (such as set-aside contracts, current size standards. A total of $30.2 was issued through the 504/CDC SBA’s loans, disaster assistance, etc.) billion in average annual contract program. During fiscal years 2016–2018, they receive under the current size dollars were awarded to businesses in small businesses in those industries also standards as a baseline, one can those industries during the period of received 318 loans through the SBA’s examine the potential benefits, costs evaluation, and 51.2 percent of the Economic Injury Disaster Loan (EIDL) and transfer impacts of proposed dollars awarded went to small program, totaling about $25.0 million on changes to size standards on small businesses. For these sectors, providing an annual basis. Table 9, Baseline for businesses and on the overall economy. contract dollars to small business All Industries, below, provides these Based on the 2012 Economic Census through set asides is quite important. baseline results by sector. (the latest available), of a total of about From the total small business contract

TABLE 9—BASELINE FOR ALL INDUSTRIES

Sector 11 Sector 21 Sector 22 Sector 23 Total

Baseline All Industries (current size standards) ...... 64 4 3 32 103 Total firms (Economic Census) ...... 2,122,631 8,196 3,673 587,173 2,721,673 Total small firms under current size standards (Eco- nomic Census) ...... 2,046,316 7,828 3,586 578,430 2,636,160 Small firms as % of total firms ...... 96.4 95.5 97.6 98.5 96.9 Total contract dollars ($ million) (FPDS–NG FY2016– 2018) ...... $591.2 $90.0 $311.1 $29,178 $30,170.0 Total small business contract dollars under current standards ($ million) (FPDS–NG FY2016–2018) ..... $459.1 $31.3 $67.0 $14,879 $15,436.4 Small business dollars as % of total dollars (FPDS– NG FY2016–2018)...... 77.6 34.8 21.5 51.0 51.2 Total No. of unique firms getting contracts (FPDS–NG FY2016–2018) ...... 3,557 298 624 13,290 17,300 Total No. of unique small firms getting small business contracts (FPDS–NG FY2016–2018) ...... 3,174 221 488 11,422 14,933 Small business firms as % of total firms ...... 89.2 74.2 78.2 85.9 86.4 No. of 7(a) and 504/CDC loans (FY2016–2018) ...... 843 73 36 7,334 8,286 Amount of 7(a) and 504 loans ($ million) (FY2016– 2018) ...... $620.7 $34.2 $6.5 $1,705.3 $2,366.7 No. of EIDL loans (FY2016–2018) ...... 90 3 3 222 318 Amount of EIDL loans ($ million) (FY2016–2018) ...... $5.6 $0.6 $0.7 $18.0 $25.0

Increases to Size Standards programs or retaining that eligibility for Service-Disabled Veteran-Owned Small a longer period. These include SBA’s Businesses (SDVOSB) Program. As stated above, of 103 receipts-based business loan programs, EIDL program, Besides set-aside contracting and size standards in Sectors 11, 21, 22 and and Federal procurement programs financial assistance discussed above, 23 that are reviewed in this rule, based intended for small businesses. Federal small businesses also benefit through on the results from analyses of latest procurement programs provide targeted, reduced fees, less paperwork, and fewer industry and Federal market data as set-aside opportunities for small compliance requirements that are well as impacts of size standards available to small businesses through changes on small businesses, SBA businesses under SBA’s various business development and contracting Federal government. However, SBA has proposes to increase 68 size standards. no data to estimate the number of small Below are descriptions of the benefits, programs. These include the 8(a)/ BD(business development) Program, the businesses receiving such benefits. costs and transfer impacts of these Based on the 2012 Economic Census Small Disadvantaged Businesses (SDB) proposed increases to size standards. (latest available), SBA estimates that in Program, the Historically Underutilized Benefits of Increases to Size Standards 68 industries in NAICS Sectors 11, 21, Business Zones (HUBZone) Program, 22 and 23 for which it has proposed to The most significant benefit to the Women-Owned Small Businesses increase size standards, more than businesses from proposed increases to (WOSB) Program, the Economically 49,400 firms (see Table 10, below) not size standards is gaining eligibility for Disadvantaged Women-Owned Small small under the current size standards Federal small business assistance Businesses (EDWOSB) Program, and the will become small under the proposed

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size standards increases and therefore Federal small business contracts totaling Under SBA’s 7(a) and 504 loan become eligible for these programs. That about $9.8 million annually. That programs, based on the data for fiscal represents about 2.4 percent of all firms represents a 1.6 percent increase to years 2016–2018, SBA estimates up to classified as small under the current small business dollars from the sector about 21 7(a) and 504 loans totaling size standards in industries for which baseline. about $14.4 million could be made to SBA has proposed increasing size The added competition from more these newly qualified small businesses standards. If adopted, proposed size in those industries under the proposed businesses qualifying as small can result standards would result in an increase to size standards. That represents a 0.6 in lower prices to the government for the small business share of total receipts percent increase to the loan amount procurements set aside or reserved for in those industries from 35.6 percent to compared to the Group baseline. small businesses, but SBA cannot 55.2 percent. Newly qualified small businesses will With more businesses qualifying as quantify this impact. Costs could be also benefit from the SBA’s EIDL small under the proposed increases to higher when full and open contracts are program. Since the benefit provided size standards, Federal agencies will awarded to HUBZone businesses that through this program is contingent on have a larger pool of small businesses receive price evaluation preferences. the occurrence and severity of a disaster from which to draw for their small However, with agencies likely setting in the future, SBA cannot make a business procurement programs. aside more contracts for small meaningful estimate of this impact. Growing small businesses that are close businesses in response to the However, based on the historical trends to exceeding the current size standards availability of a larger pool of small of the EIDL data, SBA estimates that, on will be able to retain their small businesses under the proposed increases an annual basis, the newly defined business status for a longer period under to size standards, HUBZone firms might small businesses under the proposed the higher size standards, thereby actually end up getting more set-aside increases to size standards, if adopted, enabling them to continue to benefit contracts and fewer full and open could receive four (4) EIDL loans, from the small business programs. contracts, thereby resulting in some cost totaling about $0.5 million. Based on the FPDS–NG data for fiscal savings to agencies. While SBA cannot Additionally, the newly defined small years 2016–2018, SBA estimates that estimate such costs savings as it is businesses would also benefit through about 90 firms that are active in Federal impossible to determine the number and reduced fees, less paperwork, and fewer contracting in those industries would value of unrestricted contracts to be compliance requirements that are gain small business status under the otherwise awarded to HUBZone firms available to small businesses through proposed size standards. Based on the will be awarded as set-asides, such cost the Federal government, but SBA has no same data, SBA estimates that those savings are likely to be relatively small data to quantify this impact. Table 10, newly qualified small businesses under as only a small fraction of full and open Impacts of Proposed Increases to Size the proposed increases to size contracts are awarded to HUBZone Standards, provides these results by standards, if adopted, could receive businesses. NAICS sector.

TABLE 10—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS

Sector 11 Sector 21 Sector 22 Sector 23 Total

No. of industries with proposed increases to size stand- ards ...... 60 3 3 2 68 Total current small businesses in industries with Proposed increases to size standards (Economic Census 2012) ... 2,016,066 536 3,586 5,413 2,025,601 Additional firms qualifying as small under proposed stand- ards (2012 Economic Census) ...... 49,352 21 9 34 49,415 Percentage of additional firms qualifying as small relative to current small businesses in industries with proposed increases to size standards ...... 2.4% 3.9% 0.2% 0.6% 2.4% No. of current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS–NG FY2016–2018) 1 ...... 3,143 171 488 576 4,346 Additional small business firms getting small business sta- tus (FPDS–NG FY2016–2018) ...... 66 1 12 12 88 % increase to small businesses relative to current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS–NG FY2016–2018) 1 ...... 2.1% 0.6% 2.5% 2.1% 2.0% Total small business contract dollars under current stand- ards in industries with proposed increases to size stand- ards ($ million) (FPDS–NG FY2016–2018) ...... $455.7 $4.5 $67.0 $90.8 $618.0 Estimated small business dollars available to newly quali- fied small firms (Using avg dollars obligated to SBs) ($ million) (FPDS–NG FY 2016–2018) 1 ...... $5.1 $0.2 $2.7 $1.8 $9.8 % increase to small business dollars relative to total small business contract dollars under current standards in in- dustries with proposed increases to size standards ...... 1.1 5.1 4.1 2.0 1.26 Total no. of 7(a) and 504 loans to small business in indus- tries with proposed increases to size standards (FY2016–2018) ...... 779 4 36 96 915 Total amount of 7(a) and 504 loans to small businesses in industries with proposed increases to size standards ($ million) (FY2016–2018) ...... $582.5 $1.5 $6.5 $33.7 $624.3

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TABLE 10—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS—Continued

Sector 11 Sector 21 Sector 22 Sector 23 Total

Estimated no. of 7(a) and 504 loans to newly qualified small firms ...... 18 1 1 1 21 Estimated 7(a) and 504 loan amount to newly qualified small firms ($ million) ...... $13.5 $0.4 $0.2 $0.4 $14.4 % increase to 7(a) and 504 loan amount relative to the total amount of 7(a) and 504 loans in industries with proposed increases to size standards ...... 2.3 25.0 2.8 1.0 2.3 Total no. of EIDL loans to small businesses in industries with proposed increases to size standards (FY2016– 2018) ...... 73 0 3 3 79 Total amount of EIDL loans to small businesses in indus- tries with proposed increases to size standards ($ mil- lion) (FY2016–2018)...... $4.7 $0.0 $0.7 $0.3 $5.8 Estimated no. of EIDL loans to newly qualified small firms 2 0 1 1 4 Estimated EIDL loan amount to newly qualified small firms ($ million)...... $0.13 $0.0 $0.3 $0.10 $0.5 % increase to EIDL loan amount relative to the total amount of EIDL loans in industries with proposed in- creases to size standards ...... 2.3 0.0 33.3 33.3 8.2 1. Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. Numbers of firms are calculated using the SBA current size standard, not the contracting officer’s size designation. 2. Total impact represents total unique number of firms impacted to avoid double counting as some firms are participating in more than one industry.

Costs of Increases to Size Standards applying for SBA’s 8(a)/BD and all small greater number of businesses defined as business mentor-prote´ge´ programs. With small due to the proposed increases to Besides having to register in SAM to an expanded pool of small businesses, size standards, Federal agencies may be able to participate in Federal it is likely that Federal agencies would contracting and update the SAM profile choose to set aside more contracts for set aside more contracts for small competition among small businesses annually, small businesses incur no businesses under the proposed increases direct costs to gain or retain their small only instead of using a full and open to size standards. One may surmise that competition. The movement of contracts business status as a result of increases this might result in a higher number of to size standards. All businesses willing from unrestricted competition to small small business size protests and business set-aside contracts might result to do business with the Federal additional processing costs to agencies. in competition among fewer total government must register in SAM and However, the SBA’s historical data on bidders, although there will be more update their SAM profiles annually, size protests shows that the number of regardless of their size status. SBA size protests decreased following the small businesses eligible to submit believes that a vast majority of increases to receipts-based size offers under the proposed size businesses that are willing to participate standards as part of the first 5-year standards. However, the additional costs in Federal contracting are already review of size standards. Specifically, associated with fewer bidders are registered in SAM and update their on an annual basis, the number of size expected to be minor since, by law, SAM profiles annually. More protests fell from about 600 during fiscal procurements may be set aside for small importantly, this proposed rule does not years 2011–2013 (review of most businesses under the 8(a)/BD, SDB, establish the new size standards for the receipts-based size standards was HUBZone, WOSB, EDWOSB, or very first time; rather it intends to completed by the end of FY 2013), as SDVOSB programs only if awards are modify the existing size standards in compared to about 500 during fiscal expected to be made at fair and accordance with a statutory requirement years 2014–2016 when size standards reasonable prices. and the latest data and other relevant increases were in effect. That represents factors. Costs may also be higher when full a 17 percent decline. Among those and open contracts are awarded to To the extent that the newly qualified newly defined small businesses seeking HUBZone businesses that receive price small businesses could become active in SBA’s loans, there could be some evaluation preferences. However, with Federal procurement, the proposed additional costs associated with increases to size standards, if adopted, verification of their small business agencies likely setting aside more may entail some additional status. However, small business lenders contracts for small businesses in administrative costs to the government have an option of using the tangible net response to the availability of a larger as a result of more businesses qualifying worth and net income based alternative pool of small businesses under the as small for Federal small business size standard instead of using the proposed increases to size standards, programs. For example, there will be industry-based size standards to HUBZone firms might actually end up more firms seeking SBA’s loans, more establish eligibility for SBA’s loans. For getting fewer full and open contracts, firms eligible for enrollment in the these reasons, SBA believes that these thereby resulting in some cost savings to Dynamic Small Business Search (DSBS) added administrative costs will be agencies. However, such cost savings database or in certify.sba.gov, more minor because necessary mechanisms are likely to be minimal as only a small firms seeking certification as 8(a)/BD or are already in place to handle these fraction of unrestricted contracts are HUBZone firms or qualifying for small added requirements. awarded to HUBZone businesses. business, SDB, WOSB, EDWOSB, and Additionally, some Federal contracts SDVOSB status, and more firms may possibly have higher costs. With a

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Transfer Impacts of Increases to Size pandemic. Below, SBA discusses and suggests such decreases is to ensure that Standards presents the net impacts of each option. size standards are more reflective of latest industry structure and Federal The proposed increases to size Alternative Option One: Consider market trends and that Federal small standards, if adopted, may result in Adopting All Calculated Size Standards some redistribution of Federal contracts business assistance is more effectively As discussed elsewhere in this targeted to its intended beneficiaries. between the newly qualified small proposed rule, Alternative Option One businesses and large businesses and These include SBA’s loan programs, would cause a substantial number of EIDL program, and Federal procurement between the newly qualified small currently small businesses to lose their businesses and small businesses under programs intended for small businesses. small business status and hence to lose Federal procurement programs provide the current standards. However, it their access to Federal small business would have no impact on the overall targeted, set-aside opportunities for assistance, especially small business set- small businesses under SBA’s business economic activity since total Federal aside contracts and SBA’s financial development programs, such as small contract dollars available for businesses assistance in some cases. These business, 8(a)/BD, SDB HUBZone, to compete for will not change with consequences could be mitigated. For WOSB, EDWOSB, and SDVOSB changes to size standards. While SBA example, in response to the 2008 programs. The adoption of smaller size cannot quantify with certainty the Financial Crisis and economic standards when the results support actual outcome of the gains and losses conditions that followed, SBA adopted them diminishes the risk of awarding from the redistribution contracts among a general policy in the first 5-year contracts to firms which are not small different groups of businesses, it can comprehensive size standards review to anymore. identify several probable impacts in not lower any size standard (except to Decreasing size standards may reduce qualitative terms. With the availability exclude one or more dominant firms) the administrative costs of the of a larger pool of small businesses even when the analytical results government, because the risk of under the proposed increases to size suggested the size standard should be awarding contracts to other than small standards, some unrestricted Federal lowered. Currently, because of the businesses may diminish when the size contracts which would otherwise be economic challenges presented by the standards reflect better the structure of awarded to large businesses may be set COVID–19 pandemic and the measures the market. The risks of providing SBA’s aside for small businesses. As a result, taken to protect public health, SBA has loans to firms that are not needing them large businesses may lose some Federal decided to propose the same general the most, or allowing firms that are not contracting opportunities. Similarly, policy of not lowering size standards in eligible for small business set-asides or some small businesses under the current the ongoing second 5-year to participate on the SBA procurement size standards may obtain a fewer set comprehensive size standards review as programs will provide for a better aside contracts due to the increased well. chance for smaller firms to grow and competition from more advanced The primary benefit of adopting this benefit from the opportunities available businesses qualifying as small under the alternative is that SBA’s procurement, on the Federal market, and strengthen proposed increases to size standards. management, technical and financial the small business industrial base for This impact may be offset by a greater assistance resources would be targeted the Federal Government. number of procurements being set aside to the most appropriate beneficiaries of Costs of Decreases to Size Standards for all small businesses. With larger such programs according to the businesses qualifying as small under the analytical results. Adopting the size With fewer businesses qualifying as higher size standards, smaller small standards suggested by the analytical small under the decreases to size businesses could face some results would also promote consistency standards, Federal agencies will have a disadvantage in competing for set aside with analytical results in SBA’s exercise smaller pool of small businesses from contracts against their larger of its authority to determine size which to draw for their small business counterparts. However, SBA cannot standards. SBA seeks public comment procurement programs. For example, in quantify these impacts. on the impact of adopting the size Option One, during fiscal years 2016– 3. What alternatives have been standard as suggested by the analytical 2018, agencies awarded, on an annual considered? results. basis, about $14,818 million in small Under OMB Circular A–4, SBA is As explained in the Size Standards business contracts in those 35 industries required to consider regulatory Methodology White Paper, in addition for which this Option considered alternatives to the proposed changes in to adopting all results of the primary decreasing size standards. Table 11 the proposed rule. In this section, SBA analysis, SBA evaluates other relevant below shows that lowering 35 size describes and analyzes two such factors as needed such as the impact of standards would reduce Federal alternatives to the proposed rule. the reductions or increases of size contract dollars awarded to small Alternative Option One to the proposed standards on the distribution of businesses by $865.4 million or about rule, a more stringent alternative to the contracts awarded to small businesses, 5.8 percent relative to the baseline level, proposed rule, would propose adopting and may adopt different results with the of which 99 percent are accounted for size standards based solely on the intention of mitigating potential by the Construction Sector (NAICS 23). analytical results. In other words, the negative impacts. Because of the importance of the size standards of 68 industries for which We have discussed already the construction sector for Federal the analytical results suggest raising size benefits and costs of increasing 68 size procurement and the immediate impact standards would be raised. However, standards. Below we discuss the on businesses that will see their status the size standards of 35 industries for benefits and costs of decreasing 35 size as small changed relatively fast, SBA which the analytical results suggest standards. would adopt mitigating measures to lowering size standards would be reduce the negative impact under the lowered. Alternative Option Two would Benefits of Decreases to Size Standards assumptions of Option One. SBA could propose retaining all size standards for The most significant benefit to adopt one or more of the following three all industries, given the uncertainty businesses from decreases to size actions: (1) To accept decreases in size generated by the ongoing COVID–19 standards when the SBA’s analysis standards as suggested by the analytical

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results, (2) to decrease size standards by because a vast majority of such loans are of access to loans through SBA’s EIDL a smaller amount than the calculated issued to businesses that are far below program. However, SBA expects such threshold, and (3) to retain the size the reduced size standards. For impact to be minimal as only a small standards at their current levels. example, based on the loan data for number of businesses in those Nevertheless, since Federal agencies fiscal years 2016–2018, Option One industries received such loans during are still required to meet the statutory estimates that about 71 7(a) and 504 fiscal years 2016–2018. Additionally, all small business contracting goal of 23 loans with total amounts of $16.8 those businesses were below the percent, actual impacts on the overall million could not be made to those reduced size standards. Since this set aside activity is likely to be smaller small businesses that would lose program is contingent on the occurrence as agencies are likely to award more set eligibility under the reduced size and severity of a disaster in the future, aside contracts to small businesses that standards (before mitigation). That SBA cannot make a meaningful estimate continue to remain small under the represents about one (1.0) percent of this impact. reduced size standards. decrease of the loan amounts compared Small businesses becoming other than With fewer businesses qualifying as to the baseline. Table 11, Impacts of small if size standards were decreased small, the decreased competition can Decreases to Size Standards Under might lose benefits through reduced also result in higher prices to the Alternative Option One, below, shows fees, less paperwork, and fewer Government for procurements set aside these results by sector. However, the compliance requirements that are or reserved for small businesses, but actual impact could be much less as available to small businesses through SBA cannot quantify this impact. businesses losing small business Federal government, but SBA has no However, SBA estimates an almost null eligibility under the decreases to data to quantify this impact. However, impact or non-significant reduction in industry based size standards could still if agencies determine that SBA’s size dollars obligated to small businesses, if qualify for SBA’s loans under the standards do not adequately serve such mitigation measures are adopted. tangible net worth and net income based purposes, they can establish a different Decreases to size standards would have alternative size standard. size standard with an approval from a very minor impact on small businesses Businesses losing small business SBA if they are required to use SBA’s applying for SBA’s 7(a) and 504 loans status would also be impacted in terms size standards for their programs.

TABLE 11—IMPACTS OF DECREASES TO SIZE STANDARDS UNDER ALTERNATIVE OPTION ONE

Sector 11 Sector 21 Sector 22 Sector 23 Total

No. of industries for which SBA considered decreasing size standards (2012 Economic Census) ...... 4 1 0 30 35 Total current small businesses in industries for which SBA considered decreasing size standards (EC 2012) ...... 30,250 7,292 0 573,017 610,559 Estimated no. of firms losing small status for which SBA considered decreasing size standards (EC 2012) ...... 17 16 0 5,479 5,512 % of Firms losing small status relative to current small businesses in industries for which SBA considered de- creasing size standards...... 0.1 0.2 0.0 1.0 0.9 No. of current unique small firms getting small business contracts in industries for which SBA considered de- creasing size standards (FPDS–NG FY2016–2018) 1 .... 33 50 0 11,087 11,157 Estimated number of small business firms that would have lost small business status in the decreases that SBA considered ...... 0 2 0 518 518 % decrease to small business firms relative to current unique small firms getting small business contracts in industries for which SBA considered decreasing size standards (FPDS–NG FY2016–2018) 1 ...... 0 4.0 0 4.7 4.6 Total small business contract dollars under current size standards in industries for which SBA considered de- creasing size standards ($ million) (FPDS–NG FY2016– 2018) ...... $3.3 $26.9 $0 $14,790 $14,818 Estimated small business dollars not available to firms los- ing small business status (Using avg dollars obligated to SBs) ($ million) 1 (FPDS–NG FY 2016–2018) ...... $0 $1.1 $0 $864.4 $865.4 % decrease to small business dollars relative to total small business contract dollars under current size standards in industries for which SBA considered decreasing size standards ...... 0 4.1 0 5.8 5.8 Total no. of 7(a) and 504 loans to small businesses in in- dustries for which SBA considered decreasing size standards (FY2016–2018) ...... 64 69 0 7,328 7,371 Total amount of 7(a) and 504 loans to small businesses in industries for which SBA considered decreasing size standards ($ million) (FY2016–2018) ...... $38.2 $32.7 $0.0 $1,671.5 $1,742.4 Estimated no. of 7(a) and 504 loans not available to firms that would have lost small business status ...... 1 0 0 70 71 Estimated 7(a) and 504 loan amount not available to firms that would have lost small status ($ million) ...... $0.6 $0.0 $0.0 $16.2 $16.8

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TABLE 11—IMPACTS OF DECREASES TO SIZE STANDARDS UNDER ALTERNATIVE OPTION ONE—Continued

Sector 11 Sector 21 Sector 22 Sector 23 Total

% decrease to 7(a) and 504 loan amount relative to the total amount of 7(a) and 504 loans in industries for which SBA considered decreasing size standards ...... 1.6% 0.0% 0.0% 1.0% 1.0% Total no. of EIDL loans to small businesses in industries for which SBA considered decreasing size standards (FY2016–2018) ...... 17 3 0 219 239 Total amount of EIDL loans to small businesses in indus- tries for which SBA considered decreasing size stand- ards ($ million) (FY2016–2018) ...... $0.9 $0.6 $0.0 $17.8 $19.2 Estimated no. of EIDL loans not available to firms that would have lost small business status ...... -1 0 0 ¥3 ¥4 Estimated EIDL loan amount not available to firms that would have lost small business status ($ million) ...... ¥$0.1 $0.0 $0.0 ¥$0.2 $0 % decrease to EIDL loan amount relative to the baseline .. 5.9% 0.0% 0.0% 1.4% 1.5% 1. Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2. Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small busi- ness status and small firms extending small business status.

Transfer Impacts of Decreases to Size to size standards. With some larger about 433 active firms in Federal Standards small businesses losing small business contracting in those industries would If the size standards were decreased status under the decreases to size lose small business status under Option under Alternative Option One, it may standards, smaller small businesses One, most of them from the result in a redistribution of Federal would likely become more competitive Construction Sector. This represents a contracts between small businesses in obtaining set aside contracts. decrease of about 2.9 percent of the total losing their small business status and However, SBA cannot quantify these number of small businesses large businesses and between small impacts. participating in Federal contracting businesses losing their small business Net Impact of Alternative Option One under the current size standards. Based status and small businesses remaining on the same data, SBA estimates that small under the reduced size standards. To estimate the net impacts of about $855.6 million of Federal However, as under the proposed Alternative Option One, SBA followed procurement dollars would not be increases to size standards, it would the same methodology used to evaluate available to firms losing their small have no impact on the overall economic the impacts of the proposed size status. This represents a decrease of 5.5 activity since total Federal contract standards (see Table 10 above). percent from the Group’s baseline. dollars available for businesses to However, under Alternative Option Again, a large amount of the loses are compete for will stay the same. While One, SBA used the calculated size accounted for by the Construction SBA cannot estimate with certainty the standards instead of the proposed ones Sector. actual outcome of the gains and losses to determine the impacts of changes to current thresholds. The impact of the Based on the SBA’s loan data for among different groups of businesses fiscal years 2016–2018, the total number from contract redistribution resulting increases of the calculated size standards were already shown in Table of 7(a) and 504 loans may decrease by from decreases to size standards, it can about 50 loans, and the loan amounts by identify several probable impacts. With 10 above. Table 11 (above) and Table 12, Net Impacts of Size Standards Changes about $2.4 million. This represents a 0.1 a smaller pool of small businesses under percent decrease of the loan amounts the decreases to size standards, some under Alternative Option One, below, relative to the Group baseline. set-aside Federal contracts to be present the impact of the decreases of otherwise awarded to small businesses size standards and the net impact of Firms’ Participation under the SBA’s may be competed in unrestricted basis. adopting the calculated results under EIDL program will be affected as well. As a result, large businesses may have Alternative Option One, respectively. Since the benefit provided through this more Federal contracting opportunities. Based on the 2012 Economic Census, program is contingent on the occurrence However, because agencies are still SBA estimates that in 103 industries in and severity of a disaster in the future, required by law to award 23 percent of NAICS Sectors 11, 21, 22 and 23 for SBA cannot make a meaningful estimate dollars to small businesses, SBA expects which the analytical results suggested to of this impact. However, based on the the movement of set-aside contracts to change size standards, about 43,900 historical trends of the EIDL data, SBA unrestricted competition to be limited. firms (see Table 12, below), would estimates that, on an annual basis, the For the same reason, small businesses become small under the Option One. net impact of the Option One on remaining small under the reduced size That represents about 1.7 percent of all additional firms is zero, and additional standards are likely to obtain more set firms classified as small under the loans amounts total about $0.18 million aside contracts due to the reduced current size standards. for the Group relative to the baseline. competition from fewer businesses Based on the FPDS–NG data for fiscal Table 12, below, provides these results qualifying as small under the decreases years 2016–2018, SBA estimates that by NAICS sector.

TABLE 12—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE

Sector 11 Sector 21 Sector 22 Sector 23 Total

No. of industries with proposed changes to size standards 64 4 3 32 103

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TABLE 12—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE—Continued

Sector 11 Sector 21 Sector 22 Sector 23 Total

Total no. of small business under the current size stand- ards (2012 Economic Census) ...... 2,046,316 7,828 3,586 578,430 2,636,160 Additional firms qualifying as small under proposed size standards (2012 Economic Census) ...... 49,335 5 9 ¥5,445 43,902 % of additional firms qualifying as small relative to total current small businesses ...... 2.4% 0.1% 0.2% ¥0.9% 1.7% No. of current unique small firms getting small business contracts (FPDS–NG FY2016–2018) 1 ...... 3,174 221 488 11,422 14,933 Additional small firms getting small business status (FPDS–NG FY2016–2018) ...... 64 ¥1 12 ¥505 ¥433 % increase to small firms relative to current unique small firms getting small business contracts (FPDS–NG FY2016–2018) 1 ...... 2.0 ¥0.5 2.5 ¥4.4 ¥2.9 Total small business contract dollars under current size standards ($ million) (FPDS–NG FY 2016–2018) ...... 459.1 31.3 67.0 14,879.0 15,436.4 Estimated small business dollars available to newly quali- fied small firms ($ million) (FPDS–NG FY 2016–2018) 1 5.1 ¥0.9 2.7 ¥862.6 ¥855.6 % increase to dollars relative to total small business con- tract dollars under current size standards ...... 1.1 ¥2.8 4.1 ¥5.8 ¥5.5 Total no. of 7(a) and 504 loans to small businesses (FY2016–2018) ...... 843 73 36 7,334 8,286 Total amount of 7(a) and 504 loans to small businesses (FY2016–2018) ...... $620.7 $34.2 $6.5 $1,705.3 $2,366.7 Estimated no. of additional 7(a) and 504 loans to newly qualified small firms ...... 17 1 1 ¥69 ¥50 Estimated additional 7(a) and 504 loan amount to newly qualified small firms ($ million) ...... $12.9 $0.4 $0.2 ¥$15.8 ¥$2.4 % increase to 7(a)and 504 loan amount relative to the total amount of 7(a) and 504 loans to small businesses 2.1% 1.1% 2.8% ¥0.93% ¥0.1% Total no. of EIDL loans to small businesses (FY2016– 2018) ...... 90 3 3 222 318 Total amount of EIDL loans to small businesses (FY2016– 2018) ...... $5.6 $0.6 $0.7 $18.0 $25.0 Estimated no. of additional EIDL loans to newly qualified small firms ...... 1 0 1 ¥2 0 Estimated additional EIDL loan amount to newly qualified small firms ($ million) ...... $0.08 $0.0 $0.2 ¥$0.1 $0.18 % increase to EIDL loan amount relative to the total amount of EIDL loans to small businesses ...... 1.4% 0.0% 33.3% ¥0.8% 0.7% 1 Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2 Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small business status and small firms extending small business status.

Alternative Option Two: To Retain All which SBA is not proposing the costs.’’ SBA estimates that this Current Size Standards Alternative Option Two. rulemaking would impose only de minimis costs on small businesses and Under this option, given the current Executive Order 13771 would result in negligible compliance COVID–19 pandemic, as discussed costs. Thus, SBA has determined that elsewhere, SBA considered retaining the SBA has determined, subject to the this rulemaking is exempt from the current levels of all size standards even approval of the Office of Information requirements of E.O. 13771. Details on though the analytical results may and Regulatory Affairs (OIRA) of the the estimated costs of this proposed rule suggest changing them. SBA considers Office of Management and Budget can be found in the Regulatory Impact that the option of retaining all size (OMB), that this proposed rule is not Analysis above. standards at this moment provides the subject to the requirements of E.O. opportunity to reassess the economic 13771, because most of the rule’s Initial Regulatory Flexibility Analysis situation once the economic recovery impacts are income transfers between starts. Under this option, as the current small and other than small businesses. According to the Regulatory situation develops, SBA will be able to According to the E.O. 13771 guidance in Flexibility Act (RFA), 5 U.S.C. 601–612, assess new data available on economic OMB M–17–21, dated , 2017 when an agency issues a rulemaking, it indicators, federal procurement, and (‘‘E.O. 13771 Guidance’’), ‘‘transfers’’ must prepare a regulatory flexibility SBA loans as well. SBA estimates a net are not covered by E.O. 13771. The E.O. analysis to address the impact of the impact of zero for this option, when 13771 Guidance also states that ‘‘in rule on small entities. compared to the baseline. However, if some cases, [transfer rules] may impose This proposed rule, if adopted, may we compare the proposal of increasing requirements apart from transfers, or have a significant impact on a 68 size standards and retaining 35 with transfers may distort markets causing substantial number of small businesses this alternative approach, the benefits inefficiencies. In those cases, the actions in the industries covered by this for small businesses of adopting the would need to be offset to the extent proposed rule. As described above, this proposal will not be attained, because of they impose more than de minimis rule may affect small businesses seeking

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Federal contracts, loans under SBA’s size standards alters the access to SBA’s analytical results may suggest increasing 7(a), 504 and EIDL Programs, and programs that assist small businesses 68 size standards and decreasing 35. assistance under other Federal small but does not impose a regulatory burden Retaining all size standards at their business programs. because they neither regulate nor current levels would be more onerous Immediately below, SBA sets forth an control business behavior. for the small businesses than the option initial regulatory flexibility analysis 4. What are the relevant Federal rules, of adopting 68 increases and retaining (IRFA) of this proposed rule addressing which may duplicate, overlap or the rest of size standards. Additionally, the following questions: (1) What is the conflict with the rule? for the first time, SBA evaluated 46 need for and objective of the rule;? (2) Under section 3(a)(2)(C) of the Small agricultural industries in this proposed What are SBA’s description and Business Act, 15 U.S.C. 632(a)(2)(c), rule, and postponing the adoption of the estimate of the number of small Federal agencies must use SBA’s size calculated size standards would be businesses to which the rule will standards to define a small business, detrimental for the small businesses apply;? (3) What are the projected unless specifically authorized by statute within these industries. reporting, record keeping, and other to do otherwise. In 1995, SBA published compliance requirements of the rule;? in the Federal Register a list of statutory Executive Order 13563 (4) What are the relevant Federal rules and regulatory size standards that Executive Order 13563 emphasizes that may duplicate, overlap, or conflict identified the application of SBA’s size the importance of quantifying both costs with the rule;? and (5) What alternatives standards as well as other size standards and benefits, reducing costs, will allow the Agency to accomplish its used by Federal agencies (60 FR 57988 harmonizing rules, and promoting regulatory objectives while minimizing (, 1995)). SBA is not aware flexibility. A description of the need for the impact on small businesses? of any Federal rule that would duplicate this regulatory action and benefits and 1. What is the need for and objective or conflict with establishing size costs associated with this action of the rule? standards. including possible distributional Changes in industry structure, However, the Small Business Act and impacts that relate to Executive Order technological changes, productivity SBA’s regulations allow Federal 13563 is included above in the growth, mergers and acquisitions, and agencies to develop different size Regulatory Impact Analysis under updated industry definitions have standards if they believe that SBA’s size Executive Order 12866. Additionally, changed the structure of many the standards are not appropriate for their Executive Order 13563, section 6, calls industries covered by this proposed programs, with the approval of SBA’s for retrospective analyses of existing rule. Such changes can be enough to Administrator (13 CFR 121.903). The rules. support revisions to current size Regulatory Flexibility Act authorizes an The review of size standards in the standards for some industries. Based on Agency to establish an alternative small industries covered by this proposed rule the analysis of the latest data available, business definition, after consultation is consistent with section 6 of Executive SBA believes that the revised standards with the Office of Advocacy of the U.S. Order 13563 and the 2010 Jobs Act in this proposed rule more Small Business Administration (5 U.S.C. which requires SBA to review all size appropriately reflect the size of 601(3)). standards and make necessary businesses that need Federal assistance. 5. What alternatives will allow the adjustments to reflect market The 2010 Jobs Act also requires SBA to Agency to accomplish its regulatory conditions. Specifically, the 2010 Jobs review all size standards and make objectives while minimizing the impact Act requires SBA to review at least one- necessary adjustments to reflect market on small entities? third of all size standards during every conditions. By law, SBA is required to develop 18-month period from the date of its 2. What are SBA’s description and numerical size standards for enactment (September 27, 2010) and to estimate of the number of small establishing eligibility for Federal small review all size standards not less businesses to which the rule will apply? business assistance programs. Other frequently than once every five years, Based on data from the 2012 than varying size standards by industry thereafter. SBA had already launched a Economic Census, SBA estimates that and changing the size measures, no comprehensive review of size standards there are about 2.02 million small firms practical alternative exists to the in 2007. In accordance with the Jobs covered by this rulemaking under systems of numerical size standards. Act, SBA completed the comprehensive industries with proposed changes to However, SBA considered two review of the small business size size standards. If the proposed rule is alternatives to its proposal to increase standard for each industry, except those adopted in its present form, SBA 68 size standards and maintain 35 size for agricultural enterprises previously estimates that an additional 49,415 standards at their current levels. The set by Congress, and made appropriate businesses will become small. first alternative SBA considered was adjustments to size standards for a 3. What are the projected reporting, adopting size standards based solely on number of industries to reflect current record keeping and other compliance the analytical results. In other words, Federal and industry market conditions. requirements of the rule? the size standards of 68 industries for The first comprehensive review was The proposed size standard changes which the analytical results suggest completed in 2015. Prior to 2007, the impose no additional reporting or raising size standards would be raised. last time SBA conducted a record keeping requirements on small However, the size standards of 35 comprehensive review of all size businesses. However, qualifying for industries for which the analytical standards was during the late 1970s and Federal procurement and a number of results suggest lowering size standards early 1980s. other programs requires that businesses would be lowered. This would cause a SBA issued a White Paper entitled register in SAM and self-certify that significant number of small businesses ‘‘Size Standards Methodology’’ and they are small at least once annually. to lose their small business status, published a notice in the April 11, 2019, Therefore, businesses opting to especially in the construction sector. edition of the Federal Register (84 FR participate in those programs must Under the second alternative, in view of 14587) to advise the public that the comply with SAM requirements. There the COVID–19 pandemic, SBA document is available for public review are no costs associated with SAM considered retaining all size standards and comments. The ‘‘Size Standards registration or certification. Changing at the current levels, even though the Methodology’’ White Paper explains

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how SBA establishes, reviews, and has no federalism implications ■ 2. In § 121.201 amend the table modifies its receipts-based and warranting preparation of a federalism ‘‘Small Business Size Standards by employee-based small business size assessment. NAICS Industry’’ as follows: standards. SBA gave appropriate ■ a. Revise Subsector 111, entries Paperwork Reduction Act consideration to all input, suggestions, ‘‘112111’’, ‘‘112112’’, ‘‘112120’’, recommendations, and relevant For the purpose of the Paperwork ‘‘112210’’, ‘‘112320’’ through ‘‘112340’’, information obtained from industry Reduction Act, 44 U.S.C. Ch. 35, SBA ‘‘112390’’, ‘‘112410’’, ‘‘112420’’, groups, individual businesses, and has determined that this rule will not ‘‘112511’’, ‘‘112512’’, ‘‘112519’’, Federal agencies in developing size impose any new reporting or record ‘‘112910’’ through ‘‘112930’’, ‘‘112990’’, standards for those industries covered keeping requirements. ‘‘113110’’, ‘‘113210’’, ‘‘114112’’, by this proposed rule. ‘‘114119’’, ‘‘114210’’, entries ‘‘115111’’ List of Subjects in 13 CFR Part 121 through ‘‘115113’’, ‘‘115116’’, ‘‘115210’’ Executive Order 12988 Administrative practice and ‘‘115310’’, ‘‘115310 first and second This action meets applicable procedure, Government procurement, sub-entry’’, entries ‘‘213113’’ through standards set forth in sections 3(a) and Government property, Grant programs— ‘‘213115’’, ‘‘221310’’ through ‘‘221330’’, 3(b)(2) of Executive Order 12988, Civil business, Individuals with disabilities, ‘‘237990’’, ‘‘237990 sub-entry’’, and Justice Reform, to minimize litigation, Loan programs—business, Reporting ‘‘238290’’; eliminate ambiguity, and reduce ■ and recordkeeping requirements, Small b. Revise footnote 2; burden. The action does not have ■ businesses. c. Redesignate footnote 17 as footnote retroactive or preemptive effect. 1; For the reasons set forth in the Executive Order 13132 ■ d. Redesignate footnote 20 as footnote preamble, SBA proposes to amend 13 15; For purposes of Executive Order CFR part 121 as follows: ■ e. Redesignate footnote 19 as footnote 13132, SBA has determined that this 17; proposed rule will not have substantial, PART 121—SMALL BUSINESS SIZE ■ REGULATIONS f. Revise Editorial Note 1; and direct effects on the States, on the ■ g. Remove Editorial Note 2. relationship between the national The revisions read as follows: government and the States, or on the ■ 1. The authority citation for part 121 distribution of power and continues to read as follows: § 121.201 What size standards has SBA responsibilities among the various Authority: 15 U.S.C. 632, 634(b)(6), identified by North American Industry levels of government. Therefore, SBA 636(a)(36), 662, and 694a(9); Pub. L. 116–136, Classification System codes? has determined that this proposed rule Section 1114. * * * * *

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees

Sector 11—Agriculture, Forestry, Fishing and Hunting Subsector 111—Crop Production

111110 ...... Soybean Farming ...... $2.0 ...... 111120 ...... Oilseed (except Soybean) Farming ...... 2.0 ...... 111130 ...... Dry Pea and Bean Farming ...... 2.5 ...... 111140 ...... Wheat Farming ...... 2.0 ...... 111150 ...... Corn Farming ...... 2.25 ...... 111160 ...... Rice Farming ...... 2.25 ...... 111191 ...... Oilseed and Grain Combination Farming ...... 2.0 ...... 111199 ...... All Other Grain Farming ...... 2.0 ...... 111211 ...... Potato Farming ...... 3.75 ...... 111219 ...... Other Vegetable (except Potato) and Melon Farming ...... 3.25 ...... 111310 ...... Orange Groves ...... 3.5 ...... 111320 ...... Citrus (except Orange) Groves ...... 3.75 ...... 111331 ...... Apple Orchards ...... 4.0 ...... 111332 ...... Grape Vineyards ...... 3.5 ...... 111333 ...... Strawberry Farming ...... 4.75 ...... 111334 ...... Berry (except Strawberry) Farming ...... 3.25 ...... 111335 ...... Tree Nut Farming ...... 3.25 ...... 111336 ...... Fruit and Tree Nut Combination Farming ...... 4.5 ...... 111339 ...... Other Noncitrus Fruit Farming ...... 3.0 ...... 111411 ...... Mushroom Production ...... 4.0 ...... 111419 ...... Other Food Crops Grown Under Cover ...... 4.0 ...... 111421 ...... Nursery and Tree Production ...... 2.75 ...... 111422 ...... Floriculture Production ...... 3.25 ...... 111910 ...... Tobacco Farming ...... 2.25 ...... 111920 ...... Cotton Farming ...... 2.75 ...... 111930 ...... Sugarcane Farming ...... 4.5 ...... 111940 ...... Hay Farming ...... 2.25 ...... 111991 ...... Sugar Beet Farming ...... 2.25 ...... 111992 ...... Peanut Farming ...... 2.25 ...... 111998 ...... All Other Miscellaneous Crop Farming ...... 2.25 ......

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees

Subsector 112—Animal Production and Aquaculture

112111 ...... Beef Cattle Ranching and Farming ...... 2.25 ...... 112112 ...... Cattle Feedlots ...... 19.5 ...... 112120 ...... Dairy Cattle and Milk Production ...... 3.25 ...... 112210 ...... Hog and Pig Farming ...... 3.5 ......

******* 112320 ...... Broilers and Other Meat Type Chicken Production ...... 3.0 ...... 112330 ...... Turkey Production ...... 3.25 ...... 112340 ...... Poultry Hatcheries ...... 3.5 ...... 112390 ...... Other Poultry Production ...... 3.25 ...... 112410 ...... Sheep Farming ...... 3.0 ...... 112420 ...... Goat Farming ...... 2.25 ...... 112511 ...... Finfish Farming and Fish Hatcheries ...... 3.25 ...... 112512 ...... Shellfish Farming ...... 3.25 ...... 112519 ...... Other Aquaculture ...... 3.25 ...... 112910 ...... Apiculture ...... 2.75 ...... 112920 ...... Horses and Other Equine Production ...... 2.5 ...... 112930 ...... Fur-Bearing Animal and Rabbit Production ...... 3.25 ...... 112990 ...... All Other Animal Production ...... 2.5 ......

Subsector 113—Forestry and Logging

113110 ...... Timber Tract Operations ...... 16.5 ...... 113210 ...... Forest Nurseries and Gathering of Forest Products ...... 18.0 ......

*******

Subsector 114—Fishing, Hunting and Trapping

******* 114112 ...... Shellfish Fishing ...... 12.5 ...... 114119 ...... Other Marine Fishing ...... 10.0 ...... 114210 ...... Hunting and Trapping ...... 7.5 ......

Subsector 115—Support Activities for Agriculture and Forestry

115111 ...... Cotton Ginning ...... 14.0 ...... 115112 ...... Soil Preparation, Planting, and Cultivating ...... 8.5 ...... 115113 ...... Crop Harvesting, Primarily by Machine ...... 12.0 ......

******* 115116 ...... Farm Management Services ...... 13.5 ...... 115210 ...... Support Activities for Animal Production ...... 9.5 ...... 115310 ...... Support Activities for Forestry ...... 10.0 ...... 115310 (Exception 1) ...... Forest Fire Suppression 1 ...... 25.0 1 ...... 115310 (Exception 2) ...... Fuels Management Services 1 ...... 25.0 1 ......

Sector 21—Mining, Quarrying, and Oil and Gas Extraction

*******

Subsector 213—Support Activities for Mining

******* 213113 ...... Support Activities for Coal Mining ...... 24.0 ...... 213114 ...... Support Activities for Metal Mining ...... 36.0 ...... 213115 ...... Support Activities for Nonmetallic Minerals (except Fuels) Mining ...... 18.0 ......

Sector 22—Utilities Subsector 221—Utilities

******* 221310 ...... Water Supply and Irrigation Systems ...... 36.0 ...... 221320 ...... Sewage Treatment Facilities ...... 31.0 ......

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued

Size standards Size standards NAICS codes NAICS U.S. industry title in millions of in number of dollars employees

221330 ...... Steam and Air-Conditioning Supply ...... 26.5 ......

Sector 23—Construction Subsector 236—Construction of Buildings

*******

Subsector 237—Heavy and Civil Engineering Construction

******* 237990 ...... Other Heavy and Civil Engineering Construction ...... 39.5 ...... 237990 (Exception) ...... Dredging and Surface Cleanup Activities 2 ...... 33.0 2 ......

Subsector 238—Specialty Trade Contractors

******* 238290 ...... Other Building Equipment Contractors ...... 19.5 ......

******* 511210 ...... Software Publishers 15 ...... 41.5 15 ......

******* ...... Sector 92—Public Administration 17 ......

******* Footnotes 1 NAICS code 115310—Support Activities for Forestry: Forest Fire Suppression and Fuels Management Services are two components of Sup- port Activities for Forestry. Forest Fire Suppression includes establishments which provide services to fight forest fires. These firms usually have fire-fighting crews and equipment. Fuels Management Services firms provide services to clear land of hazardous materials that would fuel forest fires. The treatments used by these firms may include prescribed fire, mechanical removal, establishing fuel breaks, thinning, pruning, and piling. 2 NAICS code 237990—Dredging: To be considered small for purposes of Government procurement, a firm or its similarly situated subcontrac- tors must perform at least 40 percent of the volume dredged with its own equipment or equipment owned by another small dredging concern. 15 NAICS code 511210—For purposes of Government procurement, the purchase of software subject to potential waiver of the nonmanufac- turer rule pursuant to § 121.1203(d) should be classified under this NAICS code. 17 NAICS Sector 92—Small business size standards are not established for this sector. Establishments in the Public Administration sector are Federal, State, and local government agencies which administer and oversee government programs and activities that are not performed by pri- vate establishments. Concerns performing operational services for the administration of a government program are classified under the NAICS private sector industry based on the activities performed. Similarly, procurements for these types of services are classified under the NAICS pri- vate sector industry that best describes the activities to be performed. For example, if a government agency issues a procurement for law en- forcement services, the requirement would be classified using one of the NAICS industry codes under NAICS industry 56161, Investigation, Guard, and Armored Car Services.

* * * * * DEPARTMENT OF TRANSPORTATION A–H1, PC–6/A–H2, PC–6/B–H2, PC–6/ B1–H2, PC–6/B2–H2, PC–6/B2–H4, PC– Editorial Note: For Federal Register Federal Aviation Administration citations affecting § 121.201, see the List of 6/C–H2, and PC–6/C1–H2 airplanes. AD CFR Sections Affected, which appears in the 2014–25–04 requires incorporating 14 CFR Part 39 Finding Aids section of the printed volume revised airworthiness limitations into and at www.govinfo.gov. [Docket No. FAA–2020–0857; Project the aircraft maintenance manual Identifier MCAI–2020–00707–A] (AMM). Since the FAA issued AD 2014– Jovita Carranza, RIN 2120–AA64 25–04, the FAA has determined that Administrator. new or more restrictive airworthiness [FR Doc. 2020–21589 Filed 10–1–20; 8:45 am] Airworthiness Directives; Pilatus limitations are necessary for the BILLING CODE 8026–03–P Aircraft Limited Airplanes stabilizer trim actuator, fuselage wing fittings, and wing-to-fuselage fittings. AGENCY: Federal Aviation Administration (FAA), DOT. This proposed AD would require revising the airworthiness limitation ACTION: Notice of proposed rulemaking section of the existing maintenance (NPRM). manual or instructions for continued SUMMARY: The FAA proposes to airworthiness to incorporate new supersede Airworthiness Directive (AD) airworthiness limitations, and 2014–25–04, which applies to all Pilatus performing an eddy current inspection Aircraft Limited (Pilatus) Models PC–6, of the fuselage wing fittings and wing to PC–6–H1, PC–6–H2, PC–6/350, PC–6/ fuselage fittings. The FAA is proposing 350–H1, PC–6/350–H2, PC–6/A, PC–6/

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this AD to address the unsafe condition Identifier MCAI–2020–00707–A’’ at the mandatory continuing airworthiness on these products. beginning of your comments. The most information (MCAI) issued by an DATES: The FAA must receive comments helpful comments reference a specific aviation authority of another country to on this proposed AD by , portion of the proposal, explain the identify and correct an unsafe condition 2020. reason for any recommended change, on an aviation product. The FAA issued ADDRESSES: You may send comments, and include supporting data. The FAA AD 2014–25–04 to address new life using the procedures found in 14 CFR will consider all comments received by limits for the fire extinguisher, which 11.43 and 11.45, by any of the following the closing date and may amend this are required to ensure the continued methods: proposal because of those comments. operational safety of the affected • Federal eRulemaking Portal: Go to Except for Confidential Business airplanes. Information (CBI) as described in the https://www.regulations.gov. Follow the following paragraph, and other Actions Since AD 2014–25–04 Was instructions for submitting comments. Issued • Fax: 202–493–2251. information as described in 14 CFR Since the FAA issued AD 2014–25– • Mail: U.S. Department of 11.35, the FAA will post all comments 04, the European Union Aviation Safety Transportation, Docket Operations, M– received, without change, to https:// Agency (EASA), which is the Technical 30, West Building Ground Floor, Room www.regulations.gov, including any Agent for the Member States of the W12–140, 1200 New Jersey Avenue SE, personal information you provide. The agency will also post a report European Union, superseded its MCAI Washington, DC 20590. and issued EASA AD No. 2018–0285, • Hand Delivery: Deliver to Mail summarizing each substantive verbal dated , 2018, which was address above between 9 a.m. and 5 contact received about this proposal. superseded with EASA AD No. 2020– p.m., Monday through Friday, except Confidential Business Information 0120, dated May 27, 2020 (referred to Federal holidays. CBI is commercial or financial after this as the Mandatory Continuing For service information identified in information that is both customarily and Airworthiness Information, or ‘‘the this NPRM, contact Pilatus Aircraft Ltd., actually treated as private by its owner. MCAI’’). The MCAI corrects an unsafe Customer Support General Aviation, Under the Freedom of Information Act condition for all Pilatus Models PC–6, CH–6371 Stans, Switzerland; telephone: (FOIA) (5 U.S.C. 552), CBI is exempt PC–6–H1, PC–6–H2, PC–6/350, PC–6/ +41 848 24 7 365; email: Techsupport@ from public disclosure. If your 350–H1, PC–6/350–H2, PC–6/A, PC–6/ pilatus-aircraft.com; internet: https:// comments responsive to this NPRM A–H1, PC–6/A–H2, PC–6/B–H2, PC–6/ www.pilatus-aircraft.com/en. You may contain commercial or financial B1–H2, PC–6/B2–H2, PC–6/B2–H4, PC– view this service information at the information that is customarily treated 6/C–H2, and PC–6/C1–H2 airplanes. FAA, Airworthiness Products Section, as private, that you actually treat as The MCAI states that Pilatus has revised Operational Safety Branch, 901 Locust, private, and that is relevant or the airworthiness limitations section for Kansas City, Missouri 64106. For responsive to this NPRM, it is important the subject airplanes to introduce new information on the availability of this that you clearly designate the submitted data modules for two existing material at the FAA, call (816) 329– comments as CBI. Please mark each mandatory inspection tasks, the 4148. page of your submission containing CBI inspection of fuselage wing fittings and Examining the AD Docket as ‘‘PROPIN.’’ The FAA will treat such the inspection of wing to fuselage marked submissions as confidential You may examine the AD docket on fittings. According to EASA, the new under the FOIA, and they will not be data modules require non-destructive the internet at https:// placed in the public docket of this www.regulations.gov by searching for visual and eddy current inspections in NPRM. Submissions containing CBI place of the previous requirement for a and locating Docket No. FAA–2020– should be sent to Doug Rudolph, 0857; or in person at Docket Operations fluorescent dye-penetrant method. Aerospace Engineer, FAA, General You may examine the MCAI in the between 9 a.m. and 5 p.m., Monday Aviation & Rotorcraft Section, AD docket on the internet at https:// through Friday, except Federal holidays. International Validation Branch, 901 www.regulations.gov by searching for The AD docket contains this NPRM, any Locust, Room 301, Kansas City, and locating Docket No. FAA–2020– comments received, and other Missouri 64106; telephone: (816) 329– 0857. information. The street address for 4059; fax: (816) 329–4090; email: The FAA has determined that new Docket Operations is listed above. [email protected]. Any and more restrictive airworthiness Comments will be available in the AD commentary that the FAA receives limitations, new life limits, and new docket shortly after receipt. which is not specifically designated as inspection procedures are necessary, FOR FURTHER INFORMATION CONTACT: CBI will be placed in the public docket including for the stabilizer trim actuator Doug Rudolph, Aerospace Engineer, for this rulemaking. and attachments, fuselage wing fittings, FAA, General Aviation & Rotorcraft and wing-to-fuselage fittings. The FAA Discussion Section, International Validation is proposing this AD to address reduced Branch, 901 Locust, Room 301, Kansas The FAA issued AD 2014–25–04, airplane controllability due to possible City, Missouri 64106; telephone: (816) Amendment 39–18045 (79 FR 73803, loss of structural integrity of certain 329–4059; fax: (816) 329–4090; email: , 2014) (‘‘AD 2014–25– parts. [email protected]. 04’’), for all Pilatus Models PC–6, PC– Related Service Information Under 1 SUPPLEMENTARY INFORMATION: 6–H1, PC–6–H2, PC–6/350, PC–6/350– H1, PC–6/350–H2, PC–6/A, PC–6/A–H1, CFR Part 51 Comments Invited PC–6/A–H2, PC–6/B–H2, PC–6/B1–H2, Pilatus has issued PC–6 The FAA invites you to send any PC–6/B2–H2, PC–6/B2–H4, PC–6/C–H2, Airworthiness Limitations Document written relevant data, views, or and PC–6/C1–H2 airplanes. AD 2014– Number 02334, Revision 9, dated March arguments about this proposal. Send 25–04 requires incorporating revised 6, 2020; and Section 04–00–00, your comments to an address listed airworthiness limitations into the AMM Airworthiness Limitations of Chapter under the ADDRESSES section. Include for your FAA-approved maintenance 04, Airworthiness Limitations, of the ‘‘Docket No. FAA–2020–0857; Project program. AD 2014–25–04 resulted from Pilatus PC–6 Aircraft Maintenance

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Manual Document Number 01975, airworthiness limitations section is The Proposed Amendment Revision 29, dated , 2020. required by 14 CFR 91.403(c). Accordingly, under the authority This service information contains Costs of Compliance delegated to me by the Administrator, airworthiness limitations for the the FAA proposes to amend 14 CFR part stabilizer trim actuator, fuselage wing The FAA estimates that this proposed 39 as follows: fittings, and wing-to-fuselage fittings. AD would affect 30 airplanes of U.S. These documents are distinct since they registry. The FAA also estimates that it PART 39—AIRWORTHINESS apply to different airplane models. would take about 1 work-hour per DIRECTIVES Pilatus also issued Section 53–00–01, product to comply with the basic Chapter 53, Fuselage, and Section 57– requirements of this AD. The average ■ 1. The authority citation for part 39 00–03, Chapter 57, Wings, of the Pilatus labor rate is $85 per work-hour. continues to read as follows: PC–6 Aircraft Maintenance Manual Based on these figures, the FAA Authority: 49 U.S.C. 106(g), 40113, 44701. Document Number 01975, Revision 29, estimates the cost of this AD on U.S. dated February 28, 2020; and Appendix operators would be $2,550, or $85 per § 39.13 [Amended] K and Appendix L of PC–6 product. ■ 2. The FAA amends § 39.13 by: ■ a. Removing Airworthiness Directive Airworthiness Limitations Document Authority for This Rulemaking Number 02334, Revision 9, dated March (AD) 2014–25–04, Amendment 39– 6, 2020. This service information Title 49 of the United States Code 18045 (79 FR 73803, December 12, contains procedures for repetitive eddy specifies the FAA’s authority to issue 2014); and ■ current inspections of the fuselage wing rules on aviation safety. Subtitle I, b. Adding the following new AD: fittings and wing-to-fuselage fittings. section 106, describes the authority of Pilatus Aircraft Limited: Docket No. FAA– This service information is reasonably the FAA Administrator. Subtitle VII: 2020–0857; Project Identifier MCAI– available because the interested parties Aviation Programs, describes in more 2020–00707–A. have access to it through their normal detail the scope of the Agency’s (a) Comments Due Date course of business or by the means authority. The FAA must receive comments by identified in the ADDRESSES section. The FAA is issuing this rulemaking November 16, 2020. under the authority described in FAA’s Determination Subtitle VII, Part A, Subpart III, Section (b) Affected ADs This product has been approved by 44701: General requirements. Under This AD replaces AD 2014–25–04, the aviation authority of another that section, Congress charges the FAA Amendment 39–18045 (79 FR 73803, December 12, 2014) (‘‘AD 2014–25–04’’). country, and is approved for operation with promoting safe flight of civil in the United States. Pursuant to the aircraft in air commerce by prescribing (c) Applicability FAA’s bilateral agreement with the State regulations for practices, methods, and This AD applies to Pilatus Aircraft Limited of Design Authority, the FAA has been procedures the Administrator finds Models PC–6, PC–6–H1, PC–6–H2, PC–6/350, notified of the unsafe condition necessary for safety in air commerce. PC–6/350–H1, PC–6/350–H2, PC–6/A, PC–6/ described in the MCAI and service This regulation is within the scope of A–H1, PC–6/A–H2, PC–6/B–H2, PC–6/B1– information referenced above. The FAA that authority because it addresses an H2, PC–6/B2–H2, PC–6/B2–H4, PC–6/C–H2, unsafe condition that is likely to exist or and PC–6/C1–H2 airplanes, all serial is proposing this AD because the FAA numbers, certificated in any category. evaluated all the relevant information develop on products identified in this rulemaking action. Note 1 to paragraph (c): These airplanes and determined the unsafe condition may also be identified as Fairchild Republic described previously is likely to exist or Regulatory Findings Company airplanes, Fairchild Industries develop on other products of the same airplanes, Fairchild Heli Porter airplanes, or type design. The FAA determined that this Fairchild-Hiller Corporation airplanes. proposed AD would not have federalism Proposed Requirements of This NPRM implications under Executive Order (d) Subject This proposed AD would retain none 13132. This proposed AD would not Air Transport Association (ATA) of of the requirements of AD 2014–25–04. have a substantial direct effect on the America Code 05, Time Limits/Maintenance This proposed AD would require States, on the relationship between the Checks. revising the airworthiness limitation national Government and the States, or (e) Reason section of the existing maintenance on the distribution of power and This AD was prompted by a determination manual or instructions for continued responsibilities among the various that new and more restrictive airworthiness airworthiness to incorporate new levels of government. limitations, new life limits, and new airworthiness limitations. The revised For the reasons discussed above, I inspection procedures are necessary. The limitations include an eddy current certify this proposed regulation: FAA is issuing this AD to address reduced inspection of the fuselage wing fittings (1) Is not a ‘‘significant regulatory airplane controllability due to possible loss and wing-to-fuselage fittings. This action’’ under Executive Order 12866, of structural integrity of certain parts. proposed AD would also require (2) Will not affect intrastate aviation (f) Airworthiness Limitations Revision performing the eddy current inspection in Alaska, and Unless already done, before further flight, of the fuselage wing fittings and wing- (3) Will not have a significant comply with the actions specified in to-fuselage fittings first within 1,100 economic impact, positive or negative, paragraphs (f)(1) through (3) of this AD. hours time-in-service or 12 months, and on a substantial number of small entities (1) For Models PC–6/B2–H2 and PC–6/B2– thereafter at the intervals specified in under the criteria of the Regulatory H4 airplanes, revise the airworthiness the revised limitations. Flexibility Act. limitations section (ALS) of the existing maintenance manual or instructions for This proposed AD would require List of Subjects in 14 CFR Part 39 continued airworthiness (ICA) for your revisions to the airworthiness airplane as follows: limitations section of an operator’s Air transportation, Aircraft, Aviation (i) Replace Section 04–00–00 with Section maintenance documents to include new safety, Incorporation by reference, 04–00–00, Airworthiness Limitations, of inspections. Compliance with the Safety. Chapter 04, Airworthiness Limitations, of the

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Pilatus PC–6 Aircraft Maintenance Manual Office (FSDO), or lacking a PI, your local and the Automated Weather Observing Document Number 01975, Revision 29, dated FSDO. System (AWOS) navigation aids, and February 28, 2020. (j) Related Information the closure of the Orange City (ii) Add Section 53–00–01, Chapter 53, Municipal Airport. Fuselage, of the Pilatus PC–6 Aircraft (1) Refer to Mandatory Continuing Maintenance Manual Document Number Airworthiness Information (MCAI) European DATES: Comments must be received on 01975, Revision 29, dated February 28, 2020. Union Aviation Safety Agency (EASA) AD or before November 16, 2020. (iii) Add Section 57–00–03, Chapter 57, No. 2018–0285, dated December 20, 2018, ADDRESSES: Send comments on this Wings, of the Pilatus PC–6 Aircraft and EASA AD No. 2020–0120, dated May 27, proposal to the U.S. Department of Maintenance Manual Document Number 2020, for related information. This MCAI Transportation, Docket Operations, 01975, Revision 29, dated February 28, 2020. may be found in the AD docket on the West Building Ground Floor, Room (2) For all airplanes specified in paragraph internet at https://www.regulations.gov by searching for and locating Docket No. FAA– W12–140, 1200 New Jersey Avenue SE, (c) of this AD except Models PC–6/B2–H2 Washington, DC 20590; telephone (202) and PC–6/B2–H4 airplanes, revise the ALS of 2020–0857. the existing maintenance manual or ICA for (2) For more information about this AD, 366–9826, or (800) 647–5527. You must your airplane as follows: contact Doug Rudolph, Aerospace Engineer, identify FAA Docket No. FAA–2020– (i) Replace the ALS with the Airworthiness FAA, General Aviation & Rotorcraft Section, 0664; Airspace Docket No. 20–ACE–15, Limitations Section of Pilatus PC–6 International Validation Branch, 901 Locust, at the beginning of your comments. You Airworthiness Limitations Document Room 301, Kansas City, Missouri 64106; may also submit comments through the Number 02334, Revision 9, dated , telephone: (816) 329–4059; fax: (816) 329– internet at https://www.regulations.gov. 2020. 4090; email: [email protected]. You may review the public docket (ii) Add Appendix K of Pilatus PC–6 (3) For service information identified in this AD, contact Pilatus Aircraft Ltd., containing the proposal, any comments Airworthiness Limitations Document received, and any final disposition in Number 02334, Revision 9, dated March 6, Customer Support General Aviation, CH– 2020. 6371 Stans, Switzerland; telephone: +41 848 person in the Dockets Office between (iii) Add Appendix L of Pilatus PC–6 24 7 365; email: Techsupport@pilatus- 9:00 a.m. and 5:00 p.m., Monday Airworthiness Limitations Document aircraft.com; internet: https://www.pilatus- through Friday, except federal holidays. Number 02334, Revision 9, dated March 6, aircraft.com/en. You may view this service FAA Order 7400.11E, Airspace 2020. information at the FAA, Airworthiness Designations and Reporting Points, and (3) For all airplanes specified in paragraph Products Section, Operational Safety Branch, subsequent amendments can be viewed (c) of this AD, after revising the ALS as 901 Locust, Kansas City, Missouri 64106. For online at https://www.faa.gov/air_ required by paragraphs (f)(1) and (2) of this information on the availability of this traffic/publications/. For further material at the FAA, call (816) 329–4148. AD, remove from service each part that has information, you can contact the reached or exceeded its new life limit. Issued on September 25, 2020. Airspace Policy Group, Federal Aviation (g) One-Time Eddy Current Inspection Lance T. Gant, Administration, 800 Independence Unless already done, within 1,100 hours Director, Compliance & Airworthiness Avenue SW, Washington, DC 20591; time-in-service after the effective date of this Division, Aircraft Certification Service. telephone: (202) 267–8783. The Order is AD or within 12 months after the effective [FR Doc. 2020–21794 Filed 10–1–20; 8:45 am] also available for inspection at the date of this AD, whichever occurs first, BILLING CODE 4910–13–P National Archives and Records perform an eddy current inspection of each Administration (NARA). For fuselage wing fitting and each wing to information on the availability of FAA fuselage fitting using the procedures DEPARTMENT OF TRANSPORTATION Order 7400.11E at NARA, email specified in paragraphs (f)(1)(ii) and (iii) of [email protected] or go to https:// this AD, or paragraphs (f)(2)(ii) and (iii) of Federal Aviation Administration this AD, as applicable to your airplane. www.archives.gov/federal-register/cfr/ Thereafter, repeat the eddy current ibr-locations.html. 14 CFR Part 71 inspection of each fuselage wing fitting and FOR FURTHER INFORMATION CONTACT: each wing to fuselage fitting at the intervals [Docket No. FAA–2020–0664; Airspace Rebecca Shelby, Federal Aviation specified in the ALS identified in paragraph Docket No. 20–ACE–15] Administration, Operations Support (f)(1)(i) or (f)(2)(i), as applicable to your Group, Central Service Center, 10101 airplane. RIN 2120–AA66 Hillwood Parkway, Fort Worth, TX (h) No Alternative Actions or Intervals Proposed Revocation and Amendment 76177; telephone (817) 222–5857. After the ALS has been revised as required of Class E Airspace; Orange City, and SUPPLEMENTARY INFORMATION: by paragraph (f) of this AD, no alternative Le Mars, IA inspection intervals or procedures may be Authority for this Rulemaking approved, except as provided in paragraph (i) AGENCY: Federal Aviation The FAA’s authority to issue rules of this AD. Administration (FAA), DOT. regarding aviation safety is found in (i) Other FAA AD Provisions ACTION: Notice of proposed rulemaking Title 49 of the United States Code. Alternative Methods of Compliance (NPRM). Subtitle I, Section 106 describes the (AMOCs): The Manager, International authority of the FAA Administrator. Validation Branch, FAA, has the authority to SUMMARY: This action proposes to Subtitle VII, Aviation Programs, approve AMOCs for this AD, if requested remove the Class E airspace extending describes in more detail the scope of the using the procedures found in 14 CFR 39.19. upward from 700 feet above the surface agency’s authority. This rulemaking is Send information to Doug Rudolph, at Orange City Municipal Airport, promulgated under the authority Aerospace Engineer, FAA, General Aviation Orange City, IA and amend the Class E described in Subtitle VII, Part A, & Rotorcraft Section, International Validation airspace extending upward from 700 Subpart I, Section 40103. Under that Branch, 901 Locust, Room 301, Kansas City, feet above the surface at the Le Mars section, the FAA is charged with Missouri 64106; telephone: (816) 329–4059; fax: (816) 329–4090; email: doug.rudolph@ Municipal Airport, Le Mars, IA. The prescribing regulations to assign the use faa.gov. Before using any approved AMOC on FAA is proposing this action; as the of airspace necessary to ensure the any airplane to which the AMOC applies, result of an airspace review caused by safety of aircraft and the efficient use of notify your appropriate principal inspector the decommissioning of the Orange City airspace. This regulation is within the (PI) in the FAA Flight Standards District (ORC) non-directional beacon (NDB), scope of that authority as it would

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revoke the Class E airspace extending Hillwood Parkway, Fort Worth, TX substantial number of small entities upward from 700 feet above the surface 76177. under the criteria of the Regulatory at Orange City Municipal Airport, Availability and Summary of Flexibility Act. Orange City, IA, and amend the Class E Documents for Incorporation by airspace the Class E airspace at Le Mars Environmental Review Reference Municipal Airport, Le Mars, IA, to This proposal will be subject to an support instrument flight rule This document proposes to amend environmental analysis in accordance operations at this airport. FAA Order 7400.11E, Airspace Designations and Reporting Points, with FAA Order 1050.1F, Comments Invited dated , 2020, and effective ‘‘Environmental Impacts: Policies and Interested parties are invited to , 2020. FAA Order Procedures’’ prior to any FAA final participate in this proposed rulemaking 7400.11E is publicly available as listed regulatory action. by submitting such written data, views, in the ADDRESSES section of this List of Subjects in 14 CFR Part 71 or arguments, as they may desire. document. FAA Order 7400.11E lists Comments that provide the factual basis Class A, B, C, D, and E airspace areas, Airspace, Incorporation by reference, supporting the views and suggestions air traffic service routes, and reporting Navigation (air). presented are particularly helpful in points. developing reasoned regulatory The Proposed Amendment decisions on the proposal. Comments The Proposal are specifically invited on the overall The FAA is proposing an amendment Accordingly, pursuant to the regulatory, aeronautical, economic, to Title 14 Code of Federal Regulations authority delegated to me, the Federal environmental, and energy-related (14 CFR) part 71 by: Aviation Administration proposes to aspects of the proposal. Removing Class E airspace extending amend 14 CFR part 71 as follows: Communications should identify both upward from 700 feet above the surface docket numbers and be submitted in at Orange City Municipal Airport, PART 71—DESIGNATION OF CLASS A, triplicate to the address listed above. Orange City, IA, as the instrument B, C, D, AND E AIRSPACE AREAS; AIR Commenters wishing the FAA to procedures at this airport have been TRAFFIC SERVICE ROUTES; AND acknowledge receipt of their comments cancelled and the airport closed, so the REPORTING POINTS on this notice must submit with those airspace is no longer required; comments a self-addressed, stamped And removing the Orange City ■ 1. The authority citation for 14 CFR postcard on which the following Municipal Airport; exclusionary part 71 continues to read as follows: statement is made: ‘‘Comments to language from the Le Mars Municipal Authority: 49 U.S.C. 106(f), 106(g); 40103, Docket No. FAA–2020–0664/Airspace Airport, Le Mars, IA, airspace legal 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, Docket No. 20–ACE–15.’’ The postcard description. 1959–1963 Comp., p. 389. will be date/time stamped and returned Class E airspace designations are to the commenter. published in paragraph 6005 of FAA § 71.1 [Amended] Order 7400.11E, dated July 21, 2020, All communications received before ■ the specified closing date for comments and effective September 15, 2020, which 2. The incorporation by reference in will be considered before taking action is incorporated by reference in 14 CFR 14 CFR 71.1 of FAA Order 7400.11E, on the proposed rule. The proposal 71.1. The Class E airspace designation Airspace Designations and Reporting contained in this notice may be changed listed in this document will be Points, dated July 21, 2020, and in light of the comments received. A published subsequently in the Order. effective September 15, 2020, is report summarizing each substantive FAA Order 7400.11, Airspace amended as follows: public contact with FAA personnel Designations and Reporting Points, is Paragraph 6005 Class E Airspace Areas concerned with this rulemaking will be published yearly and effective on Extending Upward from 700 feet or More filed in the docket. September 15. Above the Surface of the Earth Availability of NPRMs Regulatory Notices and Analyses * * * * * An electronic copy of this document The FAA has determined that this ACE IA E5 Orange City, IA [Removed] may be downloaded through the regulation only involves an established * * * * * internet at https://www.regulations.gov. body of technical regulations for which Recently published rulemaking frequent and routine amendments are ACE IA E5 Le Mars, IA [Amended] documents can also be accessed through necessary to keep them operationally Le Mars Municipal Airport, IA the FAA’s web page at https:// current, is non-controversial and (Lat. 42°46′41″ N., long. 96°11′37″ W.) www.faa.gov/air_traffic/publications/ unlikely to result in adverse or negative That airspace extending upward from 700 airspace_amendments/. comments. It, therefore: (1) Is not a feet above the surface within a 6.4-mile You may review the public docket ‘‘significant regulatory action’’ under radius of Le Mars Municipal Airport. containing the proposal, any comments Executive Order 12866; (2) is not a Issued in Fort Worth, Texas, on September received, and any final disposition in ‘‘significant rule’’ under DOT 28, 2020. person in the Dockets Office (see the Regulatory Policies and Procedures (44 ‘‘ADDRESSES’’ section for the address FR 11034; , 1979); and (3) Steven T. Phillips, and phone number) between 9:00 a.m. does not warrant preparation of a Manager, Operations Support Group, ATO and 5:00 p.m., Monday through Friday, regulatory evaluation as the anticipated Central Service Center. except federal holidays. An informal impact is so minimal. Since this is a [FR Doc. 2020–21782 Filed 10–1–20; 8:45 am] docket may also be examined during routine matter that will only affect air BILLING CODE 4910–13–P normal business hours at the Federal traffic procedures and air navigation, it Aviation Administration, Air Traffic is certified that this rule, when Organization, Central Service Center, promulgated, would not have a Operations Support Group, 10101 significant economic impact on a

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SURFACE TRANSPORTATION BOARD classification levels for railroads set On , 2020, the Board initiated forth at 49 CFR part 1201, General a rulemaking proceeding to consider 49 CFR Part 1201 Instructions section 1–1(a) were adopted MRL’s petition and consider issues [Docket No. EP 763] in 1992 by the Board’s predecessor, the related to the Class I carrier revenue Interstate Commerce Commission. Mont. threshold determination. The Board Montana Rail Link, Inc.—Petition for Rail Link, Inc. & Wis. Cent. Ltd., Joint invited ‘‘comment about whether it Rulemaking—Classification of Carriers Pet. for Rulemaking with respect to 49 should amend 49 CFR part 1201, CFR part 1201 (1992 Rulemaking), 57 General Instructions section 1–1(a), to AGENCY: Surface Transportation Board. FR 27184 (, 1992), 8 I.C.C.2d 625 increase the revenue threshold for Class ACTION: Notice of proposed rulemaking. (1992). I carriers, and, if so, whether $900 million or another amount would be SUMMARY: The Surface Transportation Background appropriate.’’ Mont. Rail Link, Inc.—Pet. Board (STB or Board) proposes to On , 2020, Montana Rail for Rulemaking—Classification of modify the thresholds for classifying rail Link, Inc. (MRL), filed a petition for Carriers, 85 FR 30680 (, 2020), carriers. rulemaking to amend the Board’s rail EP 763, slip op. at 2 (STB served May DATES: Comments are due by November carrier classification regulations. In its 14, 2020). 2, 2020. Reply comments are due by petition, MRL requests that the Board The Board received two comments in December 1, 2020. increase the revenue threshold for Class response to its May 14, 2020 decision. ADDRESSES: Comments and replies may I carriers to $900 million. (Pet. 1.) MRL On , 2020, the American Short be filed with the Board via e-filing on contends that it continues to be a Line and Regional Railroad Association the Board’s website at www.stb.gov and regional railroad operationally and (ASLRRA) filed a comment in support will be posted to the Board’s website. economically but may exceed the Class of MRL’s petition, and Transportation I revenue threshold within two years. Trades Department, AFL–CIO (TTD) FOR FURTHER INFORMATION CONTACT: filed a comment opposing MRL’s Amy Ziehm at (202) 245–0391. (Id.) Citing principles drawn from the 1992 Rulemaking, in which the revenue petition. MRL filed a reply on July 2, Assistance for the hearing impaired is 2020. thresholds were last raised, MRL asks available through the Federal Relay ASLRRA supports MRL’s petition, that the Board address ‘‘whether a Service at (800) 877–8339. arguing that Class II railroads such as SUPPLEMENTARY INFORMATION: Under 49 regional carrier such as MRL should be MRL are distinctly different from Class CFR part 1201, General Instructions treated as a Class I carrier, taking into I railroads and that, in addition to many section 1–1(a), rail carriers are grouped account (1) the financial and operational operational differences, there is a into one of three classes for purposes of differences between MRL and existing massive revenue gap between the largest accounting and reporting. The Class I carriers, and (2) the cost-benefit Class II and the smallest Class I railroad. classification of rail carriers is also used analysis of imposing Class I (ASLRRA Comment 2–3.) ASLRRA in a variety of other contexts, including requirements on MRL.’’ (Id. at 12.) argues that MRL and similarly situated differentiating the legal standards and MRL argues that, from an operational Class II railroads should continue to be procedures that apply to certain standpoint, it is clearly different from a classified in their current category, as transactions subject to Board licensing, typical Class I carrier because of its the accounting, financial, and other see, e.g., 49 U.S.C. 10902, 11324, 11325, heavy dependence on a single Class I burdens imposed on a Class II carrier by and prescribing labor protection interchange partner and because of the becoming a Class I carrier would conditions, see, e.g., 49 U.S.C. regional nature of its operations, with outweigh any resulting benefits. (Id. at 10903(b)(2), 11326, among others. approximately 95% of its mainline track 3–4.) In addition to the cost of preparing The class to which any rail carrier located in Montana. (Id. at 5–6.) From the reports,3 ASLRRA notes that belongs is determined by its annual a financial standpoint, MRL also notes, reclassifying MRL and other similarly operating revenues after application of a among other things, that the average situated railroads as Class I carriers revenue deflator adjustment. Section 1– operating revenue for Class I railroads in would unnecessarily deprive them of 1(b)(1). Currently, Class I carriers have 2018 was more than 27 times MRL’s the benefit of the Short Line annual operating revenues of total revenue for that year and that the Rehabilitation Tax Credit, which has $504,803,294 or more, Class II carriers operating revenue for even the smallest provided MRL almost $3 million per have annual operating revenues of less Class I railroad was about 3.5 times the year in additional funds to invest in than $504,803,294 and more than total revenue of MRL. (Id. at 8.) MRL infrastructure, and the Railroad Industry $40,384,263, and Class III carriers have contends that treating a regional railroad Agreement, which provides a annual operating revenues of like MRL, with its operational and mechanism for the railroads to work $40,384,263 or less, all when adjusted financial characteristics, as a Class I together to increase rail traffic. (Id. at 4.) for inflation. Section 1–1(a) (setting carrier would impose significant TTD, a coalition of 33 affiliate unions, thresholds unadjusted for inflation); burdens on MRL with no offsetting opposes MRL’s petition and requests Indexing the Annual Operating public benefit. (Id. at 12.) that the Board not increase the Class I Revenues of R.Rs., EP 748 (STB served MRL submitted eight letters in threshold. (TTD Comment 1.) TTD June 10, 2020) (calculating revenue support of its petition.2 No replies to contends that increasing the Class I deflator factor and publishing MRL’s petition were received. threshold could prevent MRL thresholds adjusted for inflation based employees from benefiting from labor 1 protective conditions that would apply on 2019 data). The revenue updated railroad revenue thresholds for each class of carrier in a decision and on its website. if MRL were to become a Class I and 1 The railroad revenue deflator formula is based 2 Letters of support were from the Montana on the Railroad Freight Price Index developed by Contractors’ Association, Montana Agricultural 3 In its petition, MRL estimates it would have to the Bureau of Labor Statistics. The formula is as Business Association, Montana Grain Elevator expend at least $150,000 annually to prepare the follows: Current Year’s Revenues × (1991 Average Association, Montana Petroleum Association, Inc., required reports, in addition to the costs associated Index/Current Year’s Average Index). 49 CFR part Montana Taxpayers Association, Montana Chamber with converting its accounting system, training 1201, Note A. Each year, the Board calculates the of Commerce, Treasure State Resources Association, employees, and maintaining and recording the annual revenue deflator factor and publishes the and Montana Wood Products Association. reports. (Pet. 9.)

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engage in a transaction with a Class III and other operational reports and is its operations far more limited, than railroad. (See id. at 1–2.) Additionally, relevant in other regulatory contexts as those of the smallest Class I carrier. (See TTD contends that MRL has not shown well. See 1992 Rulemaking, 8 I.C.C.2d at id. (arguing that the key burden on MRL, that raising the threshold is appropriate 631–32: 49 CFR parts 1201, 1241–1250. if it were to become a Class I carrier, is or necessary or that classification as a After reviewing the petition and the financial reporting); see also MRL Class I would be overly burdensome. comments, the Board will propose Reply 2–3.) While the accounting and (Id. at 1.) TTD also disagrees with MRL’s amendments to its rail carrier financial reporting required of Class I assertion that the ICC intended the 1992 classification regulations. The proposed carriers is critical to the Board’s Rulemaking to prevent large regional amendments would raise the Class I regulatory framework, it is not apparent railroads from becoming Class I revenue threshold from $504,803,294 that additional reporting by carriers railroads. (Id. at 2.) TTD asks that, if the (as adjusted for inflation) to $900 with MRL’s characteristics is Board grants MRL’s petition, it adopt million and have the effect of excluding warranted,5 particularly when the ‘‘unique conditions’’ for MRL; MRL (and other similarly situated regulatory impact to such carriers specifically, TTD requests that, if the carriers) from Class I status unless they extends beyond the Board’s regulations. Board finds it necessary to relieve MRL have met the proposed revenue (See, e.g., ASLRRA Comment 4.) of financial reporting requirements, it threshold for three years. Therefore, the Board proposes to nevertheless should apply the labor In proposing the amendments, the increase the Class I revenue threshold at protective arrangements that would Board has considered ASLRRA’s and this time in order to preserve an otherwise apply if MRL were to become MRL’s arguments that the operational appropriate distinction between Class I a Class I railroad under the current characteristics of regional railroads, like and II railroads.6 threshold. (Id.) MRL, significantly differentiate it from MRL has requested that the Board set In its reply, MRL reiterates that its the Class Is. For example, ASLRRA an amended Class I threshold of $900 operating and financial profiles are argues that small railroads are largely million, and no commenter has raised distinct from those of the current Class dependent on their Class I interchange specific concerns with the $900 million I carriers (noting, for example, that in partners for revenue, power, and car figure. The Board proposes $900 million 2018 it operated only about 720 miles of supply. (ASLRRA Comment 2.) This is as a reasonable demarcation between mainline track, nearly all of which is in true for MRL, which states that its only Class I railroads and Class II railroads as one state, whereas the smallest current interchange partner is BNSF Railway it is sufficiently above the current Class Class I carrier operated 3,397 miles of Company (BNSF) and that II annual revenue level and below the track across 10 states and two countries) approximately 84% of MRL’s total revenue level of the smallest Class I and that significant burdens would be revenue is generated from traffic carrier to maintain an appropriate imposed on MRL if the threshold is not interchanged with BNSF and ancillary division between the two classes of increased, while limited, if any, benefits services MRL performs for BNSF and carriers for the foreseeable future. would accrue to the public. (MRL Reply 96% of MRL’s non-switching traffic is TTD is concerned that MRL 2, 5.) Further, MRL notes that the subject to rates set by BNSF. (MRL employees would lose the potential petition has received no opposition Reply 2.) ASLRRA also contends that benefit of eligibility for the labor from any shipper, shipper organization, smaller railroads are often dependent protective conditions available to or governmental entity. (Id. at 5.) MRL upon a limited market and a traffic base employees of Class I carriers if the Class also argues that the petition has not that may be non-diversified. (ASLRRA Comment 3.) This characteristic also 5 Traditionally, the agency has not found the need received ‘‘broad-based opposition’’ from to collect accounting and reporting information labor organizations. (Id.) 4 Regarding appears to apply to MRL, as a majority of its traffic consists of only three from regional and smaller railroads to the same TTD’s concern that MRL’s proposal extent as the Class I rail carriers, all of which have would keep its employees from commodities. (MRL Reply 2.) Based on much larger networks and different operational and the record to date, it does appear that financial characteristics. See, e.g., Calculation of benefiting from labor protective Variable Costs in Rate Complaint Proceedings conditions, (see TTD Comment 1–2), regional railroads, such as MRL, even with revenues approaching the current involving Non-Class I R.Rs., 6 S.T.B. 798, 799 MRL argues that the rail carrier (2003); Elimination of Accounting & Reporting threshold, function more like significant classification system was established for Requirements of Class II R.Rs., No. 37614, slip op. Class II carriers and do not possess the at 2 (ICC served Feb. 25, 1982); Reduction of the purpose of implementing accounting comparative attributes of Class I Accounting & Reporting Requirements, No. 37523, and reporting requirements and that slip op. at 2 (ICC served Dec. 15, 1980). Consistent carriers. with these findings, the burden of additional TTD offers no rationale to support Moreover, MRL provides a persuasive treating MRL as a Class I carrier for reporting by carriers with MRL’s characteristics is argument that the benefits of certain not justified by any potential use of that purposes of labor protections. (MRL Class II carriers becoming Class I information from analysis, monitoring, and other Reply 3, 4.) carriers under the Board’s existing purposes. 6 In 2001, the Board declined to increase the Class Proposed Amendments revenue thresholds would not outweigh I revenue threshold in response to a request by The agency ‘‘has broad discretion to the burdens that would be imposed on Wisconsin Central Ltd.’s parent company. Proposal the newly classified carriers. (Pet. 8–9 to Require Consol. Reporting by Commonly require rail carriers to report financial Controlled R.Rs., 5 S.T.B. 1050 (2001). As MRL and operating data, and to prescribe an (arguing that the same reasons that led the ICC in the 1992 Rulemaking to observed, (see Pet. 5 n.1), the key reason the Board underlying accounting system to rejected Wisconsin Central’s request was Wisconsin increase the Class I threshold to prevent produce that information.’’ 1992 Central’s subsequent acquisition by Canadian regional railroads from becoming Class National, which was already a Class I carrier. Rulemaking, 8 I.C.C.2d at 631; see also I carriers still apply today).) Should a Although in that decision the Board also noted 49 U.S.C. 11144, 11145, 11161–64. As regional carrier, such as MRL, become a briefly that financial reporting for larger carriers, noted above, the Board’s classification like Wisconsin Central, would be reasonable and Class I carrier pursuant to the current of rail carriers affects the degree to not unduly burdensome, see Proposal to Require threshold, several significant accounting Consolidated Reporting, 5 S.T.B. at 1054–55, in this which they must file annual, quarterly, and financial reporting requirements proceeding MRL has provided its own arguments— described above—regarding the relative burdens of 4 MRL states that TTD only represents would begin to apply even though the accounting and financial reporting between Class I approximately 11.5% of MRL’s employees. (MRL carrier’s revenues would still be many and Class II carriers and has identified burdens Reply 1.) hundreds of millions of dollars less, and beyond such reporting.

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I threshold is raised. (TTD Comment 1– rule, an agency is required to: (1) Assess of the proposed rules will be published 2.) However, if the threshold is raised, the effect that its regulation will have on in the Federal Register. MRL employees would suffer no loss of small entities; (2) analyze effective 2. Comments are due by November 2, eligibility for labor protection compared alternatives that may minimize a 2020. Reply comments are due by to the status quo; they would continue regulation’s impact; and (3) make the December 1, 2020. to qualify for the same level of analysis available for public comment. protection—that available to employees Sections 601–604. In its notice of 3. A copy of this decision will be of Class II carriers—as they have for proposed rulemaking, the agency must served upon the Chief Counsel for decades. TTD’s comments to date have either include an initial regulatory Advocacy, Office of Advocacy, U.S. not persuaded the Board that this flexibility analysis, section 603(a), or Small Business Administration. continued level of labor protection certify that the proposed rule would not 4. This decision is effective on its would be insufficient if MRL’s annual have a ‘‘significant impact on a service date. revenues were between the current substantial number of small entities.’’ Decided: September 28, 2020. threshold and the proposed threshold of Section 605(b). By the Board, Board Members Begeman, $900 million. In addition, TTD’s Because the goal of the RFA is to Fuchs, and Oberman. suggestion that the Board adopt ‘‘unique reduce the cost to small entities of Jeffrey Herzig, conditions’’ for MRL would not complying with federal regulations, the Clearance Clerk. establish a more appropriate RFA requires an agency to perform a demarcation between Class I and Class regulatory flexibility analysis of small For the reasons set forth in the II carriers generally. entity impacts only when a rule directly preamble, the Surface Transportation The proposed amendment to 49 CFR regulates those entities. In other words, Board proposes to amend title 49, part 1201, General Instructions § 1–l(a) the impact must be a direct impact on chapter X, part 1201 of the Code of would increase the revenue threshold small entities ‘‘whose conduct is Federal Regulations as follows: for Class I carriers to $900 million.7 The circumscribed or mandated’’ by the PART 1201—RAILROAD COMPANIES proposal would not materially change proposed rule. White Eagle Coop. v. the current threshold between Class II Conner, 553 F.3d 467, 480 (7th Cir. ■ 1. The authority citation for part 1201 and Class III carriers but would merely 2009). restate it in 2019 dollars.8 As a result, The Board’s proposed changes to its continues to read as follows: Class I carriers would be those with regulations here are intended to update Authority: 49 U.S.C. 11142 and 11164. annual operating revenues of $900 the Board’s class classifications and do million or more; Class II carriers would not mandate or circumscribe the Subpart A—Uniform System of be those with annual operating revenues conduct of small entities. For the Accounts of less than $900 million but in excess purpose of RFA analysis for rail carriers ■ of $40.4 million; and Class III carriers subject to the Board’s jurisdiction, the 2. In the General Instructions in would be those with annual operating Board defines a ‘‘small business’’ as subpart A, section 1–1(a) and Note A to revenues of $40.4 million or less. The only including those rail carriers section 1–1 are revised to read as proposal also would amend Note A to classified as Class III rail carriers under follows: replace the 1991 Average Index with the 49 CFR part 1201, General Instructions General Instructions 2019 Average Index, as the new section 1–1. See Small Entity Size threshold levels would be calculated in Standards Under the Regulatory 1–1 Classification of carriers. (a) For 2019 dollars. Flexibility Act, 81 FR 42566 (June 30, purposes of accounting and reporting, The Board seeks comment on the 2016), EP 719 (STB served June 30, carriers are grouped into the following proposed amendments discussed above. 2016) (with the Board Member Begeman three classes: Interested persons may comment on the dissenting). With respect to the Class III Class I: Carriers having annual carrier proposed amendments by November 2, thresholds, no substantive changes are operating revenues of $900 million or 2020; replies to comments may be filed being made, as the Board is only more after applying the railroad revenue by December 1, 2020. updating the regulations to reflect the deflator formula shown in Note A. Regulatory Flexibility Act Class III threshold in 2019 dollars Class II: Carriers having annual carrier The Regulatory Flexibility Act of 1980 (rounded) as opposed to 1991 dollars. operating revenues of less than $900 (RFA), 5 U.S.C. 601–612, generally Therefore, the Board certifies under 5 million but in excess of $40.4 million requires a description and analysis of U.S.C. 605(b) that these proposed rules, after applying the railroad revenue new rules that would have a significant if promulgated, would not have a deflator formula shown in Note A. significant economic impact on a economic impact of a substantial Class III: Carriers having annual substantial number of small entities number of small entities. In drafting a carrier operating revenues of $40.4 within the meaning of RFA. million or less after applying the 7 Instruction section 1–1(a) currently defines Paperwork Reduction Act railroad revenue deflator formula shown Class I carriers as those with annual operating revenues of $250 million or more after applying the The Board’s proposal does not contain in Note A. railroad revenue deflator formula shown in Note A, a new or amended information * * * * * which, as noted above, is $504,803,294 or more in collection requirement subject to the Note A: The railroad revenue deflator 2019 dollars. Paperwork Reduction Act of 1995, 44 8 Instruction section 1–1(a) currently defines formula is based on the Railroad Freight Class II carriers as those with annual operating U.S.C. 3501–3521. Price Index developed by the Bureau of Labor revenues of less than $250 million but in excess of Statistics. The formula is as follows: $20 million and Class III carriers as those with List of Subjects in 49 CFR Part 1201 Current Year’s Revenues × (2019 Average annual operating revenues of $20 million or less, in Railroads, Uniform System of Index/Current Year’s Average Index) both cases after applying the railroad revenue Accounts. deflator formula shown in Note A. The current * * * * * Class II/Class III threshold, in 2019 dollars, is It is ordered: $40,384,263, which the proposed rule would round 1. The Board proposes to amend its [FR Doc. 2020–21859 Filed 10–1–20; 8:45 am] to $40.4 million. rules as set forth in this decision. Notice BILLING CODE 4915–01–P

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Notices Federal Register Vol. 85, No. 192

Friday, October 2, 2020

This section of the FEDERAL REGISTER associated with the November 2017 wireless lines, according to their contains documents other than rules or Record of Decision for ACP. For more wireless plan. The Commission will not proposed rules that are applicable to the detailed information on the background refund any incurred charges. Callers public. Notices of hearings and investigations, and history of the ACP project, see the will incur no charge for calls they committee meetings, agency decisions and project website at: https:// rulings, delegations of authority, filing of initiate over land-line connections to petitions and applications and agency www.fs.usda.gov/detail/gwj/home/ the toll-free telephone number. Persons statements of organization and functions are ?cid=stelprd3824603. with hearing impairments may also examples of documents appearing in this Jacqueline Emanuel, follow the proceedings by first calling section. Acting Associate Deputy Chief, National the Federal Relay Service at 1–800–877– Forest System. 8339 and providing the Service with the conference call number and conference DEPARTMENT OF AGRICULTURE [FR Doc. 2020–21865 Filed 10–1–20; 8:45 am] BILLING CODE 3411–15–P ID number. Forest Service Members of the public are also entitled to submit written comments; Warm Springs, North River, and COMMISSION ON CIVIL RIGHTS the comments must be received in the Glenwood-Pedlar Ranger Districts, regional office within 30 days following Notice of Public Meeting of the George Washington National Forest; the meeting. Written comments may be Highland, Bath, and Augusta Counties, Minnesota Advisory Committee emailed to [email protected] in the Virginia; Marlinton Ranger District, AGENCY: U.S. Commission on Civil Regional Program Unit Office/Advisory Monongahela National Forest; Rights. Pocahontas County, West Virginia, Committee Management Unit. Persons Atlantic Coast Pipeline and Supply ACTION: Announcement of meeting. who desire additional information may contact the Regional Program Unit at Header Supplemental Environmental SUMMARY: Notice is hereby given, 202–499–4066. Impact Statement pursuant to the provisions of the rules Records generated from this meeting AGENCY: Forest Service, USDA. and regulations of the U.S. Commission may be inspected and reproduced at the ACTION: on Civil Rights and the Federal Withdrawal of notice of intent Chicago office, as they become to prepare a supplementary Advisory Committee Act that the available, both before and after the environmental impact statement. Minnesota Advisory Committee (Committee) will hold a meeting via meeting. Records of the meeting will be SUMMARY: The USDA Forest Service teleconference on Tuesday, , available via https:// Monongahela (MNF) and George 2020 at 12:00 p.m. Central Time, the www.facadatabase.gov/FACA/FACA Washington National Forests (GWNF) purpose of the meeting is to elect PublicViewCommitteeDetails? are withdrawing the Notice of Intent officers and to vote whether to continue id=a10t0000001gzm3AAA under the (NOI) to prepare a Supplemental the ongoing research project or take up Commission on Civil Rights, Minnesota Environmental Impact Statement (SEIS) a new topic. Advisory Committee link. Persons for the Atlantic Coast Pipeline (ACP) DATES: The meeting will be held on interested in the work of this Committee and Supply Header project. The original Tuesday, October 6, 2020 at 12:00 p.m. are directed to the Commission’s NOI was published in the Federal Central Time. website, http://www.usccr.gov, or may Register on , 2020. Public Call Information: Dial: 800– contact the Regional Program Unit at the FOR FURTHER INFORMATION CONTACT: For 353–6461, Conference ID: 6656784. above email or phone number. inquiries about this notice, please FOR FURTHER INFORMATION CONTACT: contact Nadine Siak for the GWNF at: David Barreras, Designated Federal Agenda: [email protected] or leave a Official, at [email protected] or 202– I. Welcome, Roll Call, and Chair’s voicemail at 1–888–603–0261, or Kelly 499–4066. Comments Bridges for the MNF at: kelly.bridges@ SUPPLEMENTARY INFORMATION: Members usda.gov or 304–635–4432. of the public may listen to the II. Committee Discussion SUPPLEMENTARY INFORMATION: Dominion discussion. This meeting is available to III. Public Comment Energy Transmission, Inc. on behalf of the public through the call in IV. Adjournment Atlantic Coast Pipeline LLC (Atlantic), information listed above. Any interested has withdrawn the Application for member of the public may call this Exceptional Circumstance: Pursuant Transportation and Utility Systems and number and listen to the meeting. An to 41 CFR 102–3.150. the notice for this Facilities on Federal Lands that was open comment period will be provided meeting is given less than 15 calendar previously submitted for the ACP. to allow members of the public to make days prior to the meeting because of the Atlantic will no longer be moving a statement to the Committee as time exceptional circumstances of the forward with the ACP which crossed allows. The conference call operator immediacy of the subject matter. approximately 20.1 miles of lands in the will ask callers to identify themselves, Dated: September 28, 2020. MNF and GWNF. The original NOI for the organization they are affiliated with David Mussatt, this project was published in the (if any), and an email address prior to Federal Register on June 11, 2020 (85 placing callers into the conference Supervisory Chief, Regional Programs Unit. FR 35634). Atlantic will coordinate with room. Callers can expect to incur regular [FR Doc. 2020–21788 Filed 10–1–20; 8:45 am] the Forest Service regarding restoration charges for calls they initiate over BILLING CODE P

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DEPARTMENT OF COMMERCE Dated: September 28, 2020. average dumping margins are listed Andrew McGilvray, below in the ‘‘Final Results of Review’’ Foreign-Trade Zones Board Executive Secretary. section of this notice. [B–34–2020] [FR Doc. 2020–21825 Filed 10–1–20; 8:45 am] On April 24, 2020, Commerce tolled all deadlines in administrative reviews BILLING CODE 3510–DS–P Foreign-Trade Zone (FTZ) 102—St. by 50 days,3 thereby extending the Louis, Missouri; Authorization of deadline for these results until , Production Activity; H–J Enterprises, DEPARTMENT OF COMMERCE 2020. On July 21, 2020, Commerce Inc./H–J International, Inc. (Electrical tolled all for all preliminary and final Transformer Components and Kits); International Trade Administration results in administrative reviews by an additional 60 days,4 thereby extending High Ridge, Missouri [A–570–979] the deadline for these final results until On June 1, 2020, H–J Enterprises, Inc./ September 28, 2020. H–J International, Inc. (H–J) submitted a Crystalline Silicon Photovoltaic Cells, notification of proposed production Whether or Not Assembled Into Scope of the Order Modules, From the People’s Republic activity to the FTZ Board for its The merchandise covered by this of China: Final Results of Antidumping facilities within Subzone 102E, in High order is crystalline silicon photovoltaic Duty Administrative Review and Final Ridge, Missouri. cells, and modules, laminates, and Determination of No Shipments; 2017– The notification was processed in panels, consisting of crystalline silicon accordance with the regulations of the 2018 photovoltaic cells, whether or not FTZ Board (15 CFR part 400), including AGENCY: Enforcement and Compliance, partially or fully assembled into other notice in the Federal Register inviting International Trade Administration, products, including, but not limited to, public comment (85 FR 35260–35261, Department of Commerce. modules, laminates, panels and building , 2020). On September 29, 2020, SUMMARY: The Department of Commerce integrated materials.5 Merchandise the applicant was notified of the FTZ (Commerce) continues to find that covered by this order is currently Board’s decision that no further review manufacturers/exporters of crystalline classified in the Harmonized Tariff of the activity is warranted at this time. silicon photovoltaic cells, whether or Schedule of the United States (HTSUS) The production activity described in the not assembled into modules (solar under subheadings 8501.61.0000, notification was authorized, subject to cells), from the People’s Republic of 8507.20.80, 8541.40.6015, 8541.40.6020, the FTZ Act and the FTZ Board’s China (China) sold solar cells in the 8541.40.6025, 8541.40.6030, regulations, including Section 400.14. United States at less than normal value 8541.40.6035, 8541.40.6045, and Dated: September 29, 2020. during the period of review (POR) 8501.31.8000. Although these HTSUS Andrew McGilvray, December 1, 2017 through November subheadings are provided for Executive Secretary. 30, 2018. convenience and customs purposes, the written description of the scope of this [FR Doc. 2020–21824 Filed 10–1–20; 8:45 am] DATES: Applicable October 2, 2020. order is dispositive. BILLING CODE 3510–DS–P FOR FURTHER INFORMATION CONTACT: Jeff Pedersen, AD/CVD Operations, Office Analysis of Comments Received IV, Enforcement and Compliance, All issues raised in the case and DEPARTMENT OF COMMERCE International Trade Administration, rebuttal briefs filed by parties in this Foreign-Trade Zones Board U.S. Department of Commerce, 1401 review are addressed in the Issues and Constitution Avenue NW, Washington, Decision Memorandum. A list of the [B–35–2020] DC 20230; telephone: (202) 482–2769. issues that parties raised, and to which SUPPLEMENTARY INFORMATION: we responded in the Issues and Foreign-Trade Zone (FTZ) 105— Decision Memorandum, follows as an Providence, Rhode Island; Background appendix to this notice. The Issues and Authorization of Production Activity; On , 2020, Commerce Decision Memorandum is a public Night Vision Technology Solutions, published in the Federal Register the document and is on file electronically LLC; (Night Vision Camera Systems); preliminary results of the 2017–2018 via Enforcement and Compliance’s Jamestown, Rhode Island administrative review of the Antidumping and Countervailing Duty On , 2020, Night Vision antidumping duty order on solar cells Centralized Electronic Service System Technology Solutions, LLC submitted a from the China.1 For events subsequent (ACCESS). ACCESS is available to notification of proposed production to the Preliminary Results, see registered users at https:// activity to the FTZ Board for its facility Commerce’s Issues and Decision access.trade.gov. In addition, a complete within Subzone 105B, in Jamestown, Memorandum.2 The final weighted- version of the Issues and Decision Rhode Island. Memorandum can be accessed directly The notification was processed in 1 See Crystalline Silicon Photovoltaic Cells, at http://enforcement.trade.gov/frn/. accordance with the regulations of the Whether or Not Assembled Into Modules, from the The paper and electronic versions of the People’s Republic of China: Preliminary Results of Issues and Decision Memorandum are FTZ Board (15 CFR part 400), including Antidumping Duty Administrative Review and notice in the Federal Register inviting Preliminary Determination of No Shipments; 2017– identical in content. public comment (85 FR 35261, June 9, 2018, 85 FR 7531 (February 10, 2020) (Preliminary 2020). On September 28, 2020, the Results), and accompanying Preliminary Decision 3 See Memorandum, ‘‘Tolling of Deadlines for Memorandum. Antidumping and Countervailing Duty applicant was notified of the FTZ 2 See Memorandum, ‘‘Issues and Decision Administrative Reviews in Response to Operational Board’s decision that no further review Memorandum for the Final Results of the 2017– Adjustments Due to COVID–19,’’ dated April, 24, of the activity is warranted at this time. 2018 Antidumping Duty Administrative Review of 2020. The production activity described in the Crystalline Silicon Photovoltaic Cells, Whether or 4 See Memorandum, ‘‘Tolling of Deadlines for Not Assembled into Modules, From the People’s Antidumping and Countervailing Duty notification was authorized, subject to Republic of China’’ (Issues and Decision Administrative Reviews,’’ dated July 21, 2020. the FTZ Act and the FTZ Board’s Memorandum), dated concurrently with, and 5 For a complete description of the scope of the regulations, including Section 400.14. hereby adopted by, this notice. order, see Issues and Decision Memorandum.

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Affiliation and Single Entity Co., Ltd. (THB); and Trina Solar (Hefei) dumping margins for the mandatory Determination Science and Technology Co., Ltd. respondents, Risen and Trina, which We preliminarily found that Risen (THFT) (collectively Trina) are affiliated also resulted in a revision of the Energy Co., Ltd. (Risen Energy); Risen pursuant to sections 771(33)(E) of the dumping margin for the separate rate Energy (Changzhou) Co., Ltd. Act and all of these companies should respondents. be treated as a single entity pursuant to (Changzhou); Risen (Wuhai) New Separate Rates Energy Co., Ltd. (Wuhai); Zhejiang 19 CFR 351.401(f)(1)–(2). No interested Twinsel Electronic Technology Co., Ltd. party commented on these treatments, In the Preliminary Results, we found (Twinsel); Risen (Luoyang) New Energy and these findings remain unchanged that evidence provided by Trina, Risen, for these final results. Co., Ltd. (Luoyang); Jiujiang Shengchao and 16 other companies/company Xinye Technology Co., Ltd. (Jiujiang); Final Determination of No Shipments groups supported finding an absence of both de jure and de facto government Jiujiang Shengzhao Xinye Trade Co., In the Preliminarily Results, we found control, and, therefore, we preliminarily Ltd. Ruichang Branch (Jiujiang no evidence calling into question the granted a separate rate to each of these Ruichang Branch); and Risen Energy no-shipment claims of the following companies/company groups. We (HongKong) Co., Ltd. (Hong Kong Risen) companies: BYD (Shangluo) Industrial received no comments since the (collectively, Risen) are affiliated Co., Ltd.; LERRI Solar Technology Co., issuance of the Preliminary Results pursuant to section 771(33)(E) and (F) of Ltd.; Ningbo ETDZ Holdings, Ltd.; regarding our determination that these the Tariff Act of 1930, as amended (the Sumec Hardware & Tools Co., Ltd.; and 18 companies/company groups are Act), and that all of these companies Sunpreme Solar Technology (Jiaxing) eligible for a separate rate. Therefore, for should be treated as a single entity Co., Ltd. No parties commented on this pursuant to 19 CFR 351.401(f)(1)–(2). preliminary decision. For the final the final results, we find that 18 entities We also found that Trina Solar Co., Ltd. results of review, we continue to find are eligible for separate rates. Commerce (formerly, Changzhou Trina Solar that these companies had no shipments assigned a dumping margin to the Energy Co., Ltd.) (TCZ); Trina Solar of subject merchandise to the United separate rate companies that it did not (Changzhou) Science and Technology States during the POR. individually examine, but which Co., Ltd. (TST); Changzhou Trina demonstrated their eligibility for a Hezhong Photoelectric Co., Ltd. (THZ); Changes Since the Preliminary Results separate rate, based on the mandatory Yancheng Trina Guoneng Photovoltaic Based on a review of the record and respondents’ dumping margins. Technology Co., Ltd (formerly, comments received from interested Final Results of Review Yancheng Trina Solar Energy parties regarding our Preliminary Technology Co., Ltd.) (TYC); Changzhou Results, and for the reasons explained in We are assigning the following Trina Solar Yabang Energy Co., Ltd. the Issues and Decision Memorandum, dumping margins to the firms listed (TYB); Turpan Trina Solar Energy Co., we made revisions to our preliminary below for the period December 1, 2017 Ltd. (TLF); Hubei Trina Solar Energy calculations of the weighted-average through , 2018:

Weighted- average Producers/exporters dumping margin (percent)

Trina Solar Co., Ltd./Trina Solar (Changzhou) Science and Technology Co., Ltd./Yancheng Trina Guoneng Photovoltaic Technology Co., Ltd./Changzhou Trina Solar Yabang Energy Co., Ltd./Turpan Trina Solar Energy Co., Ltd./Hubei Trina Solar Energy Co., Ltd./Trina Solar (Hefei) Science and Technology Co., Ltd./Changzhou Trina Hezhong Photoelectric Co., Ltd ...... 50.33 Risen Energy Co. Ltd./Risen (Wuhai) New Energy Co., Ltd./Zhejiang Twinsel Electronic Technology Co., Ltd./Risen (Luoyang) New Energy Co., Ltd./Jiujiang Shengchao Xinye Technology Co., Ltd./Jiujiang Shengzhao Xinye Trade Co., Ltd./Ruichang Branch, Risen Energy (HongKong) Co., Ltd ...... 106.39

Review-Specific Average Rate Applicable to the Following Companies 6

Anji DaSol Solar Energy Science & Technology Co., Ltd ...... 68.93 Canadian Solar International Limited/Canadian Solar Manufacturing (Changshu), Inc./Canadian Solar Manufacturing (Luoyang) Inc./ CSI Cells Co., Ltd./CSI–GCL Solar Manufacturing (YanCheng) Co., Ltd./CSI Solar Power (China) Inc. (Canadian Solar) ...... 68.93 JA Solar Technology Yangzhou Co., Ltd ...... 68.93 Jiawei Solarchina Co., Ltd ...... 68.93 JingAo Solar Co., Ltd ...... 68.93 Jinko Solar Co., Ltd. (Jinko) ...... 68.93 Jinko Solar Import and Export Co., Ltd. (Jinko I&E) ...... 68.93 Jinko Solar International Limited (Jinko Int’l) ...... 68.93 Shanghai BYD Co., Ltd ...... 68.93 Shanghai JA Solar Technology Co., Ltd ...... 68.93 Shenzhen Portable Electronic Technology Co., Ltd ...... 68.93 Shenzhen Sungold Solar Co., Ltd ...... 68.93 Wuxi Tianran Photovoltaic Co., Ltd ...... 68.93 Yingli Energy (China) Company Limited/Baoding Tianwei Yingli New Energy Resources Co., Ltd./Tianjin Yingli New Energy Re- sources Co., Ltd./Hengshui Yingli New Energy Resources Co., Ltd./Lixian Yingli New Energy Resources Co., Ltd./Baoding Jiasheng Photovoltaic Technology Co., Ltd./Beijing Tianneng Yingli New Energy Resources Co., Ltd./Hainan Yingli New Energy Resources Co., Ltd./Shenzhen Yingli New Energy Resources Co., Ltd ...... 68.93 Zhejiang Jinko Solar Co., Ltd ...... 68.93 Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company ...... 68.93

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Commerce’s policy regarding transactions, we will direct CBP to be the rate previously established for the conditional review of the China-wide assess importer- or customer-specific China-wide entity (i.e., 238.95 percent); entity applies to this administrative assessment rates based on the resulting and (4) for all non-China exporters of review.7 Under this policy, the China- per-unit rates.10 Where an importer- or subject merchandise which have not wide entity will not be under review customer- specific ad valorem or per- received their own rate, the cash deposit unless a party specifically requests, or unit rate is greater than de minimis, we rate will be the rate applicable to the Commerce self-initiates, a review of the will instruct CBP to collect the Chinese exporter that supplied the non- entity. Because no party requested a appropriate duties at the time of Chinese exporter. These deposit review of the China-wide entity, and we liquidation. Where either the requirements, when imposed, shall did not self-initiate a review of the respondent’s weighted average dumping remain in effect until further notice. entity, the entity is not under review, margin is zero or de minimis, or an Disclosure and the entity’s dumping margin (i.e., importer or customer-specific ad 238.95 percent) is not subject to change valorem or per-unit rate is zero or de We intend to disclose the calculations as a result of this review.8 minimis, we will instruct CBP to performed for these final results within five days of publication of this notice in Assessment liquidate appropriate entries without regard to antidumping duties.11 the Federal Register in accordance with We will determine, and U.S. Customs For merchandise whose sale/entry 19 CFR 351.224(b). and Border Protection (CBP) shall was not reported in the U.S. sales Notification to Importers assess, antidumping duties on all database submitted by an exporter appropriate entries covered by this individually examined during this This notice also serves as a reminder review. We intend to issue assessment review, but that entered under the case to importers of their responsibility instructions to CBP 15 days after the number of that exporter (i.e., at the under 19 CFR 351.402(f)(2) to file a publication date of these final results of individually-examined exporter’s cash certificate regarding the reimbursement review. In accordance with 19 CFR deposit rate), we will instruct CBP to of antidumping duties prior to 351.212(b)(1), we are calculating liquidate such entries at the China-wide liquidation of the relevant entries importer- or customer-specific rate. Additionally, if we determine that during this POR. Failure to comply with assessment rates for the merchandise an exporter under review had no this requirement could result in subject to this review. For any shipments of the subject merchandise, Commerce’s presumption that individually examined respondent any suspended entries that entered reimbursement of antidumping duties whose weighted-average dumping under that exporter’s case number will occurred and the subsequent assessment margin is above de minimis (i.e., 0.50 be liquidated at the China-wide rate.12 of double antidumping duties. percent), we will calculate importer- or customer-specific assessment rates for Cash Deposit Requirements Administrative Protective Orders merchandise subject to this review. The following cash deposit This notice also serves as a reminder Where the respondent reported reliable requirements will be effective upon to parties subject to administrative entered values, we calculated importer- publication of the final results of this protective order (APO) of their or customer-specific ad valorem rates by administrative review for shipments of responsibility concerning the return or aggregating the dumping margins the subject merchandise from China destruction of proprietary information calculated for all U.S. sales to the entered, or withdrawn from warehouse, disclosed under APO in accordance importer or customer and dividing this for consumption on or after the with 19 CFR 351.305, which continues amount by the total entered value of the publication date of this notice in the to govern business proprietary 9 sales to the importer or customer. Federal Register, as provided by section information in this segment of the Where we calculated an importer- or 751(a)(2)(C) of the Act: (1) For the proceeding. Timely written notification customer-specific weighted-average exporters listed in the table in the of the return or destruction of APO dumping margin by dividing the total ‘‘Final Results of Review’’ section materials, or conversion to judicial amount of dumping for reviewed sales above, the cash deposit rate will be the protective order, is hereby requested. to the importer or customer by the total rate listed for each exporter in the table, Failure to comply with the regulations sales quantity associated with those except if the rate is zero or de minimis and terms of an APO is a violation (i.e., less than 0.5 percent), then the cash which is subject to sanction. 6 This rate is based on the rates for the respondents that were selected for individual deposit rate will be zero; (2) for Notification to Interested Parties review, excluding rates that are zero, de minimis, previously investigated Chinese and This determination is issued and or based entirely on facts available. See section non-Chinese exporters that received a 735(c)(5)(A) of the Act. See Memorandum, ‘‘Final published in accordance with sections separate rate in a prior segment of this 751(a)(1) and 777(i)(1) of the Act and 19 Results of the Antidumping Duty Administrative proceeding, the cash deposit rate will Review of Crystalline Silicon Photovoltaic Cells, CFR 351.221(b)(5). Whether or Not Assembled into Modules, from the continue to be the existing exporter- People’s Republic of China: Calculation of the Cash specific rate; (3) for all Chinese Dated: September 28, 2020. Deposit Rate for Non-Reviewed Companies,’’ dated exporters of subject merchandise that Jeffrey I. Kessler, concurrently with this notice. Assistant Secretary for Enforcement and 7 have not been found to be entitled to a See Antidumping Proceedings: Announcement Compliance. of Change in Department Practice for Respondent separate rate, the cash deposit rate will Selection in Antidumping Duty Proceedings and Appendix Conditional Review of the Nonmarket Economy 10 Id. Entity in NME Antidumping Duty Proceedings, 78 11 See Antidumping Proceedings: Calculation of Issues and Decision Memorandum FR 65963, 65969–70 (, 2013). the Weighted-Average Dumping Margin and 8 I. Summary See Crystalline Silicon Photovoltaic Cells, Assessment Rate in Certain Antidumping Duty II. Background Whether or Not Assembled Into Modules, from the Proceedings; Final Modification, 77 FR 8101, 8103 People’s Republic of China: Final Results of (February 14, 2012). III. Scope of the Order Antidumping Duty Administrative Review and 12 See Non-Market Economy Antidumping IV. Discussion of the Issues Final Determination of No Shipments; 2015–2016, Proceedings: Assessment of Antidumping Duties, 76 Comment 1. Unreported Factors of 83 FR 35616 (, 2018). FR 65694 (, 2011), for a full discussion Production for Purchased Solar Cells and 9 See 19 CFR 351.212(b)(1). of this practice. Modules

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Comment 2. The Appropriate Surrogate Advisory Committee Act (5 U.S.C. DEPARTMENT OF COMMERCE Value for Silver Paste App.). It provides advice to the Comment 3. The Appropriate Surrogate Secretary of Commerce on the necessary Minority Business Development Value for Solar Glass Agency Comment 4. The Appropriate Surrogate elements of a comprehensive policy Country approach to supply chain President’s Advisory Commission on Comment 5. The Appropriate Surrogate competitiveness and on regulatory Asian Americans and Pacific Islanders Value for Ocean Freight policies and programs and investment Comment 6. Selection of Surrogate priorities that affect the competitiveness AGENCY: Minority Business Financial Statements of U.S. supply chains. For more Development Agency, Department of Comment 7. The Appropriate Surrogate information about the Committee visit: Commerce. Value for Aluminum Frames ACTION: Notice of open meeting. Comment 8. The Appropriate Surrogate https://www.trade.gov/acscc. Value for Junction Boxes Matters to be considered: Committee SUMMARY: The President’s Advisory Comment 9. The Appropriate Surrogate members are expected to continue to Commission on Asian Americans and Value for Backsheet discuss the major competitiveness- Comment 10. The Appropriate Surrogate Pacific Islanders (AAPI Commission) Value for Ethylene Vinyl Acetate (EVA) related topics raised at the previous will convene an open meeting to discuss Sheet Committee meetings, including trade issues related to the draft Commission Comment 11. Adjusting the Surrogate and competitiveness; freight movement report to the President. This meeting is Financial Ratio Calculations and policy; trade innovation; regulatory open to the public and interested Comment 12. Error in Calculating Market issues; finance and infrastructure; and persons may listen to the teleconference Economy Purchase Prices workforce development. The by using the call-in number and pass Comment 13. Error in Calculating the code provided below (see ADDRESSES). International Freight Surrogate Value Committee’s subcommittees will report DATES: Comment 14. Error in Calculating the on the status of their work regarding This meeting will be held on Domestic Brokerage and Handling these topics. The agenda may change to Thursday, , 2020, from 4:00 Surrogate Value accommodate other Committee p.m. to 6:00 p.m., Eastern Time (ET). Comment 15. Failure to Adjust the U.S. business. The Office of Supply Chain, ADDRESSES: This meeting will be held Price for Subsidies Professional & Business Services will by teleconference on Thursday, October V. Recommendation post the final detailed agenda on its 8, 2020. Advance registration is required [FR Doc. 2020–21823 Filed 10–1–20; 8:45 am] website, https://www.trade.gov/acscc, at to access the teleconference. Interested BILLING CODE 3510–DS–P least one week prior to the meeting. persons may register at URL: https:// www.mbda.gov/page/third-open- The meetings will be open to the meeting-presidents-advisory- DEPARTMENT OF COMMERCE public and press on a first-come, first- commission-aapis. Access to the served basis. Space is limited. Please teleconference will be shared the day International Trade Administration contact Richard Boll, at richard.boll@ prior to the open meeting; participants trade.gov, for participation information can sign on beginning at 3:45 p.m., ET. Advisory Committee on Supply Chain if you wish to participate. FOR FURTHER INFORMATION CONTACT: Competitiveness: Notice of Public For Interested parties may submit written Meetings information regarding the comments to the Committee at any time teleconference, please contact Ms. Tina AGENCY: International Trade before and after the meeting. Parties Wei Smith, Executive Director, Office of Administration, U.S. Department of wishing to submit written comments for the White House Initiative on Asian Commerce. consideration by the Committee in Americans and Pacific Islanders; ACTION: Notice of open meetings. advance of this meeting email them to telephone (202) 482–1375; email: [email protected]. [email protected]. SUMMARY: This notice sets forth the SUPPLEMENTARY INFORMATION: For consideration during the schedule and proposed topics of Background. The President, through discussion for upcoming public meetings, and to ensure transmission to Executive Order 13872 (, 2019), meetings of the Advisory Committee on the Committee prior to the meetings, re-established the President’s Advisory Supply Chain Competitiveness comments must be received no later Commission on Asian Americans and (Committee). than 5:00 p.m. EST on , 2020. Pacific Islanders to advise the President, Comments received after October 15, DATES: through the Secretary of Commerce and The meetings will be held on 2020, will be distributed to the , 2020, from 10:00 a.m. to the Secretary of Transportation. The Committee, but may not be considered 12:00 p.m. and 1:00 p.m. to 4:00 p.m., AAPI Advisory Commission provides at the meetings. The minutes of the Eastern Daylight Time (EDT). advice to the President on executive meetings will be posted on the branch efforts to broaden access of AAPI ADDRESSES: The meetings will be held Committee website within 60 days of communities, families and businesses to via Webex. the meeting. economic resources and opportunities FOR FURTHER INFORMATION CONTACT: that empower AAPIs to improve the Richard Boll, Office of Supply Chain, Eugene Alford, quality of their lives, raise the standard Professional & Business Services Co-DFO, ACSCC, Office of Supply Chain, of living in their communities and (OSCPBS), International Trade Professional and Business Services. families, and more fully participate in Administration. Email: richard.boll@ [FR Doc. 2020–21847 Filed 10–1–20; 8:45 am] the U.S. economy. trade.gov. Telephone: 571–331–0098. BILLING CODE 3510–DR–P Public Participation. In accordance SUPPLEMENTARY INFORMATION: with Section 10(a)(2) of the Federal Background: The Committee was Advisory Committee Act, as amended (5 established under the discretionary U.S.C. App.), this notice is the public authority of the Secretary of Commerce announcement of the Commission’s and in accordance with the Federal intent to hold a teleconference on

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October 8, 2020. This meeting is open to the Federal Government’s service to the public. The Board shall to the public and interested persons engagement and support of provide recommendations and strategies may listen to the teleconference by technological innovation, and the to enable the Federal Government to registering using the link provided incorporation and adoption of emerging adopt and keep pace with industry. above and using the call-in number and technologies and innovative means to In developing its recommendations, passcode to be sent to each registrant address critical technological challenges the Board shall identify critical the day prior to the meeting (see facing the Federal Government in its advances in emerging technology, ADDRESSES). Prospective agenda items provision of services to the public, management, and IT service delivery for the meeting include a deliberation of within the framework of applicable that should be developed, piloted, or the draft Commission report to the national policies. adopted within the Federal President, discussion regarding The National Institute of Standards Government. These may include ratification of the report, administrative and Technology (NIST or Institute) advances that are responsive to the tasks and such other Commission through the Department of Commerce rapidly evolving digital marketplace and business as may arise during the (DoC) invites and requests nominations approaches to accelerating the meeting. The Commission welcomes of individuals for appointment to the introduction and use of emerging interested persons to submit written Board. NIST will consider nominations technologies and approaches for comments at any time before or after the received in response to this notice for governance, procurement, and meeting to the Office of the White appointment to the Board, in addition to management processes for Federal House Initiative on Asian Americans nominations already received. civilian IT systems, applications, and Pacific Islanders (see FOR FURTHER Registered Federal lobbyists may not services, and infrastructure. The Board INFORMATION CONTACT). To facilitate serve on NIST Federal Advisory shall submit a report to the Secretary, distribution of written comments to Committees in an individual capacity. through the Director of NIST, providing Commission members prior to the DATES: Nominations for the Board will its recommendations within two years meeting, the Commission suggests that be accepted on an ongoing basis and from its establishment. comments be submitted by facsimile or will be considered as and when Membership by email no later than , 2020. vacancies arise effective October 1, The Commission will reserve a portion 2020. The Board shall be composed of no of the meeting to receive pertinent oral more than 15 members. The members ADDRESSES: Please submit nominations must possess some or all of the comments from members of the public. to Alicia Chambers, Committee Liaison Copies of the Commission open following: Officer, National Institute of Standards (a) Proven track record of sound meeting minutes will be made available and Technology, 100 Bureau Drive, MS to the public. judgment in leading or governing large, 1000, Gaithersburg, MD 20899. complex private sector corporations or Josephine Arnold, Nominations may also be submitted via organizations; Chief Counsel, Minority Business email to [email protected]. (b) demonstrated performance in Development Agency. FOR FURTHER INFORMATION CONTACT: identifying and adopting new [FR Doc. 2020–21874 Filed 10–1–20; 8:45 am] Jason Boehm, Director of Program technology innovations into the BILLING CODE 3510–21–P Coordination Office, National Institute operations of large organizations in of Standards and Technology, 100 either the public or private sector; and Bureau Drive, MS 100, Gaithersburg, (c) demonstrated performance in DEPARTMENT OF COMMERCE MD 20899. His email is Jason.Boehm@ developing new technology concepts. nist.gov, and phone number is 301–975– The Board members will be National Institute of Standards and 8678. authorized by the Department of Technology SUPPLEMENTARY INFORMATION: Commerce to serve for three-year terms, Committee Information: and in accordance with DOC policies Establishment of the Civilian The Civilian Innovation Advisory and procedures, including the limit to Innovation Advisory Board and Call for Board (Board) is established pursuant to six years of consecutive service. Nominations the Federal Advisory Committee Act, as Members of the Board who are not full- AGENCY: National Institute of Standards amended, 5 U.S.C. App. time or permanent part-time Federal and Technology, Department of Objectives and Duties: The Board officers or employees will be appointed Commerce. shall provide independent advice and to serve as special government ACTION: Notice of establishment and call recommendations through the Director employee (SGE) members. Members of for nominations to serve on the Civilian of NIST to the Secretary and, upon the Board who are full-time or Innovation Advisory Board. request, through the Director of permanent part-time Federal officers or Technology Transformation Services employees will be appointed pursuant SUMMARY: The Secretary of Commerce (TTS) to the Administrator of GSA. to 41 CFR 102–3.130(h) to serve as (Secretary), announces the Such advice and recommendations shall regular government employee (RGE) establishment of the Civilian Innovation address strengthening the civilian members. No member, unless Advisory Board (The Board) in Federal Government’s ability to engage authorized by the Secretary of accordance with the Federal Advisory with and support American innovation Commerce, may serve more than two Committee Act of 1972 (FACA), as and the ability of the Federal consecutive terms of service on the amended, and the Secretary of Government to incorporate and apply Board, to include its subcommittees. Commerce (Secretary), a discretionary innovative and emerging technological Members shall be selected solely on advisory committee. The Board shall means to streamline organizational the basis of established records of provide independent advice and structure and process issues, modernize distinguished service; and shall be recommendations to the Secretary of business and functional concepts, and eminent in fields such as business, Commerce and, upon request, to the accelerate the development and research, new product development, Administrator of the General Services procurement of technology applications engineering, workforce development, Administration (GSA) on issues relevant to enhance the Federal Government’s education, management consulting,

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environment, and international Federal advisory boards and Federal 7930–00–NIB–2207—Disinfectant, Hard- relations. employment. In addition, each Surface, Ready-To-Use, 32 oz Spray Consistent with DOC policy, the nomination letter should state that the Bottle Director of NIST, may appoint the Board candidate agrees to the nomination, 7930–00–NIB–2208—Disinfectant, Hard- Chair from among the Board acknowledges the responsibilities of Surface, Ready-To-Use, 1 Gallon Bottle membership approved in accordance serving on the Board, and will actively Mandatory Source of Supply: Lighthouse for with policy and procedures and, in participate in good faith in the tasks of the Blind and Visually Impaired, San doing so, shall determine the term of the Board. Francisco, CA Mandatory For: Total Government service for the Board Chair, which shall 3. The Department of Commerce is committed to equal opportunity in the Requirement not exceed the member’s approved term Contracting Activity: Federal Acquisition of service. workplace and seeks a broad-based and Service, GSA/FSS Greater Southwest All Board members will be diverse Board membership. Acquisiti reimbursed for travel and per diem as it Kevin Kimball, pertains to official business of the Michael R. Jurkowski, NIST Chief of Staff. Board. Board members will serve Deputy Director, Business & PL Operations. [FR Doc. 2020–21834 Filed 10–1–20; 8:45 am] without compensation. [FR Doc. 2020–21833 Filed 10–1–20; 8:45 am] BILLING CODE 3510–13–P The Director of NIST on behalf of the BILLING CODE 6353–01–P Secretary of Commerce, and pursuant to DOC policies and procedures, may appoint, as deemed necessary, non- COMMITTEE FOR PURCHASE FROM voting subject matter experts (SMEs) to PEOPLE WHO ARE BLIND OR COMMODITY FUTURES TRADING assist the Board or its subcommittees on SEVERELY DISABLED COMMISSION an ad hoc basis. These non-voting SMEs Procurement List; Proposed Additions are not members of the Board or its Sunshine Act Meetings subcommittees and will not engage or AGENCY: Committee for Purchase From participate in any deliberations by the People Who Are Blind or Severely TIME AND DATE: 10:30 a.m. EDT, Board or its subcommittees. These non- Disabled. Tuesday, October 6, 2020. voting SMEs, if not full-time or ACTION: Proposed additions to the PLACE: Virtual meeting. permanent part-time Federal officers or Procurement List. employees, will be appointed pursuant STATUS: Open. to 5 U.S.C. 3109 on an intermittent basis SUMMARY: The Committee is proposing to address specific issues under to add products to the Procurement List MATTERS TO BE CONSIDERED: The consideration by the Board. that will be furnished by nonprofit Commodity Futures Trading Members shall not reference or agencies employing persons who are Commission (‘‘Commission’’ or otherwise utilize their membership on blind or have other severe disabilities. ‘‘CFTC’’) will hold this meeting to the Board in connection with public DATES: Comments must be received on consider the following matters: statements made in their personal or before: November 1, 2020. • Final Rule: Amendments to capacities without a disclaimer that the ADDRESSES: Committee for Purchase Compliance Requirements for views expressed are their own and do From People Who Are Blind or Severely Commodity Pool Operators on Form not represent the views of the IAB, NIST Disabled, 1401 S Clark Street, Suite 715, CPO–PQR; and or the Department of Commerce. Arlington, Virginia 22202–4149. • Memorandum of Understanding: Miscellaneous FOR FURTHER INFORMATION CONTACT: For MOU Between the CFTC and the Office further information or to submit of Financial Research Regarding the Meetings will be conducted at least comments contact: Michael R. twice a year in selected locations across Sharing of Data and Information Jurkowski, Telephone: (703) 603–2117, Collected on Form CPO–PQR. the country. Fax: (703) 603–0655, or email 1. Generally, Board meetings are open [email protected]. The agenda for this meeting will be to the public. available to the public and posted on SUPPLEMENTARY INFORMATION: This the Commission’s website at https:// Nomination Information: notice is published pursuant to 41 www.cftc.gov. Instructions for public 1. Nominations are sought from all U.S.C. 8503 (a)(2) and 41 CFR 51–2.3. Its purpose is to provide interested persons access to the live feed of the meeting fields described above. will also be posted on the Commission’s 2. Nominees should have established an opportunity to submit comments on the proposed actions. website. In the event that the time, date, records of distinguished service and or place of this meeting changes, an shall be eminent in fields such as Additions announcement of the change, along with business, research, new product If the Committee approves the the new time, date, or place of the development, engineering, labor, proposed additions, the entities of the meeting, will be posted on the education, management consulting, Federal Government identified in this Commission’s website. environment and international relations. notice will be required to procure the The category (field of eminence) for CONTACT PERSON FOR MORE INFORMATION: products listed below from nonprofit which the candidate is qualified should Christopher Kirkpatrick, Secretary of the agencies employing persons who are be specified in the nomination letter. Commission, 202–418–5964. blind or have other severe disabilities. Nominations for a particular category The following products are proposed Authority: 5 U.S.C. 552b. should come from organizations or for addition to the Procurement List for Dated: September 29, 2020. individuals within that category. A production by the nonprofit agencies Christopher Kirkpatrick, summary of the candidate’s listed: qualifications should be included with Secretary of the Commission. the nomination, including (where Products [FR Doc. 2020–21912 Filed 9–30–20; 11:15 am] applicable) current or former service on NSN(s)—Product Name(s): BILLING CODE 6351–01–P

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BUREAU OF CONSUMER FINANCIAL and compliance date requirements. The PRAMain. Find this particular PROTECTION Bureau’s OMB control number for 12 information collection by selecting CFR part 1041 is 3170–0071. Pursuant ‘‘Currently under 30-day Review—Open Agency Information Collection to 5 CFR 1320.11(h), the Bureau for Public Comments’’ or by using the Activities: Notice of Office of submitted the final rule with an search function. In addition, written Management and Budget Approval of information collection request (ICR) to comments that are sent to OMB also Information Collection Requirements OMB on , 2020, and OMB should be submitted electronically at: approved this ICR on September 24, AGENCY: Bureau of Consumer Financial http://www.regulations.gov, under Protection. 2020. In accordance with the PRA and Docket No. CPSC–2010–0053. 5 CFR 1320.11(k), the Bureau hereby ACTION: Notice of approval of announces OMB approval of the revised FOR FURTHER INFORMATION CONTACT: information collection requirements. information collection requirements as Cynthia Gillham, Consumer Product SUMMARY: In accordance with the contained in the subject final rule which Safety Commission, 4330 East West Paperwork Reduction Act of 1995 will be effective , 2020. Highway, Bethesda, MD 20814; (301) (PRA), the Bureau of Consumer Dated: September 29, 2020. 504–7791, or by email to: cgillham@ Financial Protection (Bureau) is Darrin King, cpsc.gov. announcing Office of Management and Paperwork Reduction Act Officer, Bureau of SUPPLEMENTARY INFORMATION: On July Budget (OMB) approval of new Consumer Financial Protection. information collection requirements 23, 2020, CPSC published a notice in [FR Doc. 2020–21812 Filed 10–1–20; 8:45 am] the Federal Register to announce the contained in a final rule published in BILLING CODE 4810–AM–P the Federal Register on , 2020 agency’s intention to seek extension of (85 FR 44382), regarding Payday, approval of the collection of Vehicle Title, and Certain High-Cost information. (85 FR 44526). The CONSUMER PRODUCT SAFETY Commission received no comments. Installment Loans. See the COMMISSION SUPPLEMENTARY INFORMATION section Accordingly, CPSC seeks to renew the below for additional information about [Docket No. CPSC–2010–0053] following currently approved collection this OMB approval. of information: FOR FURTHER INFORMATION CONTACT: Agency Information Collection Activities; Submission for OMB Title: Safety Standard for Multi- Documentation prepared in support of Purpose Lighters. these information collection requests is Review; Comment Request; Safety OMB Number: 3041–0130. available at www.reginfo.gov. Requests Standard for Multi-Purpose Lighters for additional information should be AGENCY: Consumer Product Safety Type of Review: Renewal of directed to Darrin King, PRA Officer, at Commission. collection. _ (202) 435–9575, or email: CFPB PRA@ ACTION: Notice. Frequency of Response: On occasion. cfpb.gov. If you require this document Affected Public: Manufacturers and in an alternative electronic format, SUMMARY: As required by the Paperwork please contact CFPB_Accessibility@ Reduction Act of 1995, the Consumer importers of multi-purpose lighters. cfpb.gov. Product Safety Commission (CPSC or Estimated Number of Respondents: 62 SUPPLEMENTARY INFORMATION: Under the Commission) announces that the firms will test, on average, 2 models per PRA (44 U.S.C. 3501 et seq.) the Bureau Commission has submitted to the Office firm. may not conduct or sponsor, and, of Management and Budget (OMB) a Estimated Time per Response: 50 notwithstanding any other provision of request for extension of approval of a hours per model, including testing, law, a respondent is not required to collection of information associated recordkeeping, data maintenance, and respond to, an information collection with the Safety Standard for Multi- submitting records requested by CPSC. Purpose Lighters. OMB previously unless it displays a currently valid OMB Total Estimated Annual Burden: control number. On July 22, 2020, the approved the collection of information under control number 3041–0130. 6,200 hours (62 firms x 2 models x 50 Bureau published a final rule in the hours). Federal Register titled ‘‘Payday, Vehicle OMB’s most recent extension of Title, and Certain High-Cost Installment approval will expire on , General Description of Collection: The Loans.’’ The final rule to amend its 2020. On , 2020, the CPSC Commission issued a safety standard for regulations governing payday, vehicle published a notice in the Federal multi-purpose lighters (16 CFR part title, and certain high-cost installment Register to announce the agency’s 1212) in 1999. The standard includes loans. Specifically, the final rule intention to seek extension of approval requirements that manufacturers revokes provisions of those regulations of the collection of information. The (including importers) of multi-purpose that: Provide that it is an unfair and Commission received no comments. lighters issue certificates of compliance abusive practice for a lender to make a Therefore, by publication of this notice, based on a reasonable testing program. covered short-term or longer-term the Commission announces that CPSC The standard also requires that balloon-payment loan, including payday has submitted to the OMB a request for manufacturers and importers maintain and vehicle title loans, without extension of approval of this collection certain records. Respondents must reasonably determining that consumers of information, without change. comply with these testing, certification, have the ability to repay those loans DATES: Submit written or electronic and recordkeeping requirements for according to their terms; prescribe comments on the collection of multi-purpose lighters. mandatory underwriting requirements information by November 2, 2020. for making the ability-to-repay ADDRESSES: Written comments and Alberta E. Mills, determination; exempt certain loans recommendations for the proposed Secretary, Consumer Product Safety from the mandatory underwriting information collection should be sent Commission. requirements; and establish related within 30 days of publication of this [FR Doc. 2020–21844 Filed 10–1–20; 8:45 am] definitions, reporting, recordkeeping, notice to: www.reginfo.gov/public/do/ BILLING CODE 6355–01–P

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CONSUMER PRODUCT SAFETY approval of the collection of Mailing address is 2000 Defense COMMISSION information. (85 FR 44527). The Pentagon, Washington, DC 20301–2000. Commission received no substantive SUPPLEMENTARY INFORMATION: Due to [Docket No. CPSC–2010–0054] comments. Accordingly, CPSC seeks to circumstances beyond the control of the Agency Information Collection renew the following currently approved Department of Defense and the Activities; Submission for OMB collection of information: Designated Federal Officer, the Defense Title: Procedures for the Export of Review; Comment Request; Policy Board was unable to provide Noncomplying Products. Procedures for Export of public notification required by 41 CFR OMB Number: 3041–0003. Noncomplying Products 102–3.150(a) concerning the meeting of Type of Review: Renewal of October 6 through 7, 2020 of the AGENCY: Consumer Product Safety collection. Defense Policy Board. Accordingly, the Commission. Frequency of Response: On occasion.. Advisory Committee Management ACTION: Notice. Affected Public: Exporters of products Officer for the Department of Defense, that do not comply with Commission pursuant to 41 CFR 102–3.150(b), SUMMARY: As required by the Paperwork requirements waives the 15-calendar day notification Reduction Act of 1995, the Consumer Estimated Number of Respondents: 7 requirement. Product Safety Commission (CPSC or exporters will file approximately 9 This meeting is being held under the Commission) announces that the notifications. provisions of the Federal Advisory Commission has submitted to the Office Estimated Time per Response: 1 hour Committee Act (FACA) (5 U.S.C., App.), of Management and Budget (OMB) a per notification. the Government in the Sunshine Act (5 request for extension of approval of a Total Estimated Annual Burden: 9 × U.S.C. 552b), and Title 41 Code of collection of information relating to the hours (9 notifications 1 hour). Federal Regulations (CFR), Sections procedures for the export of General Description of Collection: The 102–3.140 and 102–3.150. noncomplying products. OMB Commission has procedures that Purpose of the Meeting: To obtain, previously approved the collection of exporters must follow to notify the review, and evaluate classified information under control number Commission of the exporter’s intent to information related to the DPB’s mission 3041–0003. OMB’s most recent export products that are banned or fail to advise on (a) issues central to extension of approval will expire on to comply with an applicable CPSC strategic DoD planning; (b) policy October 31, 2020. On July 23, 2020, safety standard, regulation, or statute. implications of U.S. force structure and CPSC published a notice in the Federal Respondents must comply with the force modernization and on DoD’s Register to announce the agency’s requirements in 16 CFR part 1019 and ability to execute U.S. defense strategy; intention to seek extension of approval file a statement with the Commission in (c) U.S. regional defense policies; and of the collection of information. The accordance with these requirements. (d) other research and analysis of topics Commission received no substantive Alberta E. Mills, raised by the Secretary of Defense, the comments. Therefore, by publication of Secretary, Consumer Product Safety Deputy Secretary of Defense, or the this notice, the Commission announces Commission Under Secretary of Defense for Policy. that CPSC has submitted to the OMB a [FR Doc. 2020–21841 Filed 10–1–20; 8:45 am] Agenda: On October 6–7, 2020 the request for extension of approval of this BILLING CODE 6355–01–P DPB will have classified discussions on collection of information, without the development of a long-term China change. strategy and to review the NDAA DATES: Submit written or electronic DEPARTMENT OF DEFENSE mandated study on ‘‘Deterrence in comments on the collection of Space.’’ Topics and speakers include (1) information by November 2, 2020. Office of the Secretary an intel community briefing from the ADDRESSES: Written comments and CIA; (2) a China operations briefing Defense Policy Board; Notice of recommendations for the proposed from select experts; (3) a briefing on the Federal Advisory Committee Meeting information collection should be sent broader strategic challenges from select experts; (4) a competitive strategy within 30 days of publication of this AGENCY: Under Secretary of Defense for discussion by the Office of Net notice to: www.reginfo.gov/public/do/ Policy, Department of Defense (DoD). PRAMain. Find this particular Assessment; (5) Policy perspectives ACTION: Notice of Federal Advisory from the Acting Assistant Secretary of information collection by selecting Committee meeting. ‘‘Currently under 30-day Review—Open Defense for Indo-Pacific Security Affairs and the Assistant Secretary of Defense for Public Comments’’ or by using the SUMMARY: The DoD is publishing this for Strategy, Plans, and Capabilities; and search function. In addition, written notice to announce that the following (6) a review of the NDAA ‘‘Deterrence comments that are sent to OMB also Federal Advisory Committee meeting of in Space’’ study. should be submitted electronically at: the Defense Policy Board (DPB) will Meeting Accessibility: In accordance http://www.regulations.gov, under take place. Docket No. CPSC–2010–0054. with section 10(d) of the FACA, and 41 DATES: Closed to the public Tuesday, CFR 102–3.155, the DoD has determined FOR FURTHER INFORMATION CONTACT: October 6, 2020 from 8:00 a.m. to 5:00 that this meeting shall be closed to the Cynthia Gillham, Consumer Product p.m. and Wednesday, , 2020 public. The Under Secretary of Defense Safety Commission, 4330 East West from 8:00 a.m. to 12:00 p.m. (Policy), in consultation with the DoD Highway, Bethesda, MD 20814; (301) ADDRESSES: The closed meeting will be FACA Attorney, has determined in 504–7791, or by email to: cgillham@ held at The Pentagon, 2000 Defense writing that this meeting be closed to cpsc.gov. Pentagon, Washington, DC 20301–2000. the public because the discussions fall SUPPLEMENTARY INFORMATION: On July FOR FURTHER INFORMATION CONTACT: Ms. under the purview of Section 552b(c)(1) 23, 2020, the CPSC published a notice Monica Bacheler, (703) 571–9234 of the Sunshine Act and are so in the Federal Register to announce the (Voice), 703–697–8606 (Facsimile), inextricably intertwined with agency’s intention to seek extension of [email protected] (Email). unclassified material that they cannot

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reasonably be segregated into separate virtual meeting can be accessed at Availability of Materials for the discussions without disclosing https://usace.webex.com/meet/ndc.nav, Meeting. A copy of the agenda or any classified material. Public Call-in: USA Toll-Free 866–434– updates to the agenda for the October Written Statements: In accordance 5269, USA Caller Paid/International 30, 2020 virtual meeting will be with Section 10(a)(3) of the FACA and Toll: 216–706–7005 Access Code: available. The final version will be 41 CFR 102–3.105(j) and 102–3.140(c), 4935871, Security Code 1234. available at the virtual meeting. All the public or interested organizations materials will be posted to the website FOR FURTHER INFORMATION CONTACT: Mr. may submit written statements to the after the meeting. membership of the DPB at any time Mark R. Pointon, the Designated Federal Public Accessibility to the Meeting: regarding its mission or in response to Officer (DFO) for the committee, in Pursuant to 5 U.S.C. 552b, as amended, the stated agenda of a planned meeting. writing at the Institute for Water and 41 CFR 102–3.140 through 102–3.1 Written statements should be submitted Resources, U.S. Army Corps of 65, and subject to the availability of to the DPB’s Designated Federal Officer Engineers, ATTN: CEIWR–GM, 7701 space, this virtual meeting is open to the (DFO), which is listed in this notice or Telegraph Road, Casey Building, public. Registration of members of the can be obtained from the GSA’s FACA Alexandria, VA 22315–3868; by public who wish to participate in the Database—http:// telephone at 703–428–6438; and by virtual meeting will begin at 8:15 a.m. www.facadatabase.gov/. Written email at [email protected]. on the day of the meeting. Participation statements that do not pertain to a Alternatively, contact Mr. Steven D. is on a first-to-arrive basis. Any scheduled meeting of the DPB may be Riley, an Alternate Designated Federal interested person may participate in the submitted at any time. However, if Officer (ADFO), in writing at the meeting, file written comments or individual comments pertain to a Institute for Water Resources, U.S. Army statements with the committee, or make specific topic being discussed at a Corps of Engineers, ATTN: CEIWR– verbal comments during the virtual planned meeting, then these statements NDC, 7701 Telegraph Road, Casey public meeting, at the times, and in the must be submitted no later than five Building, Alexandria, VA 22315–3868; manner, permitted by the committee, as business days prior to the meeting in by telephone at 703–659–3097; and by set forth below. question. The DFO will review all email at [email protected]. Special Accommodations: Individuals submitted written statements and SUPPLEMENTARY INFORMATION: The requiring any special accommodations provide copies to all members. committee meeting is being held under related to the virtual public meeting or Dated: September 25, 2020. the provisions of the Federal Advisory seeking additional information about the procedures, should contact Mr. Aaron T. Siegel, Committee Act of 1972 (5 U.S.C., Appendix, as amended), the Pointon, the committee DFO, or Mr. Alternate OSD Federal Register, Liaison Riley, an ADFO, at the email addresses Officer, Department of Defense. Government in the Sunshine Act of or telephone numbers listed in the FOR [FR Doc. 2020–21860 Filed 10–1–20; 8:45 am] 1976 (5 U.S.C. 552b, as amended), and 41 CFR 102–3.150. FURTHER INFORMATION CONTACT section, BILLING CODE 5001–06–P at least five (5) business days prior to Purpose of the Meeting: The Board is the meeting so that appropriate chartered to provide independent DEPARTMENT OF DEFENSE arrangements can be made. advice and recommendations to the Written Comments or Statements: Secretary of the Army on construction Pursuant to 41 CFR 102–3.105(j) and Department of the Army, Corps of and rehabilitation project investments Engineers 102–3.140 and section 10(a)(3) of the on the commercial navigation features Federal Advisory Committee Act, the of the inland waterways system of the Inland Waterways Users Board public or interested organizations may United States. At this meeting, the Meeting Notice submit written comments or statements Board will receive briefings and to the Board about its mission and/or AGENCY: Department of the Army, U.S. presentations regarding the investments, the topics to be addressed in this virtual Army Corps of Engineers, DoD. projects and status of the inland public meeting. Written comments or ACTION: Notice of open Federal advisory waterways system of the United States statements should be submitted to Mr. committee virtual meeting. and conduct discussions and Pointon, the committee DFO, or Mr. deliberations on those matters. The Riley, a committee ADFO, via electronic SUMMARY: The Department of the Army Board is interested in written and verbal mail, the preferred mode of submission, is publishing this notice to announce comments from the public relevant to at the addresses listed in the FOR the Federal advisory committee online these purposes. FURTHER INFORMATION CONTACT section virtual meeting of the U.S. Army Corps Agenda: At this meeting the agenda in the following formats: Adobe Acrobat of Engineers, Inland Waterways Users will include the status of FY 2021 or Microsoft Word. The comment or Board (Board). This meeting is open to funding for inland and coastal statement must include the author’s the public. For additional information Navigation; status of the Inland name, title, affiliation, address, and about the Board, please visit the Waterways Trust Fund (IWTF); status of daytime telephone number. Written committee’s website at http:// the inland waterways Capital comments or statements being www.iwr.usace.army.mil/Missions/ Investment Strategy activities; status of submitted in response to the agenda set Navigation/ the ongoing construction activities for forth in this notice must be received by InlandWaterwaysUsersBoard.aspx. Olmsted Locks and Dam Project, the the committee DFO or ADFO at least DATES: The Army Corps of Engineers, Monongahela River Locks and Dams 2, five (5) business days prior to the Inland Waterways Users Board will 3, and 4 Project, the Chickamauga Lock meeting so that they may be made conduct an online virtual meet from Project and the Kentucky Lock Project; available to the Board for its 9:00 a.m. to 1:00 p.m. EDT on October Update for Inner Harbor Navigation consideration prior to the meeting. 30, 2020. Canal (IHNC) Lock; Outcome of the Written comments or statements ADDRESSES: Online Virtual Meeting. The 2020 Illinois Waterway Closure; and received after this date may not be Inland Waterways Users Board will be Discussion of the Merits of different provided to the Board until its next an online virtual meeting. The online Acquisition Methods for Construction. meeting. Please note that because the

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Board operates under the provisions of along Buffalo Bayou and its tributaries constructed and a portion of Buffalo the Federal Advisory Committee Act, as in Harris and Fort Bend counties, Texas. Bayou was straightened as part of the amended, all written comments will be An Interim Report has been prepared to completed Project. Since Project treated as public documents and will be document alternatives considered to completion, a number of physical made available for public inspection. date. The Interim Report, which does improvements and operational changes Verbal Comments: Members of the not include recommendations or have been made to attempt to mitigate public will be permitted to make verbal decisions, is being published to solicit changing conditions within Addicks, comments during the virtual public input from the public. Seeking this Barker, Buffalo Bayou and surrounding meeting only at the time and in the public input prior to identifying a watersheds. However, the watersheds manner allowed herein. If a member of preferred alternative will help ensure continue to experience major flood the public is interested in making a the analysis of a complex problem—and events, most recently and most verbal comment at the open virtual ultimately decisions—are effective, significantly Hurricane Harvey in 2017. meeting, that individual must submit a responsive, sustainable and understood These flood events, combined with request, with a brief statement of the by the region’s communities. documented increases in precipitation subject matter to be addressed by the DATES: Written comments on the Interim frequencies, continued urbanization of comment, at least three business (3) Report must be received by email or the watersheds, and the potential for days in advance to the committee DFO post-marked by November 2, 2020. flooding events in the future, indicate or ADFO, via electronic mail, the ADDRESSES: The Interim Report and the Project may need to be modified to preferred mode of submission, at the additional pertinent information about further mitigate flood risks. addresses listed in the FOR FURTHER the- study can be found at: https:// The study will evaluate ways to INFORMATION CONTACT section. The www.swg.usace.army.mil/Missions/ reduce flooding in three watersheds— committee DFO and ADFO will log each Projects/Buffalo-Bayou-and-Tributaries- Addicks Reservoir, Barker Reservoir, request to make a comment, in the order Resiliency-Study/. and Buffalo Bayou—focusing on areas received, and determine whether the Interested persons may submit written upstream and downstream of Addicks subject matter of each comment is comments by email to BBTRS@ and Barker dams and along Buffalo relevant to the Board’s mission and/or usace.army.mil or by mail to: USACE, Bayou. A portion of Cypress Creek the topics to be addressed in this public Galveston District, Attn: BBTRS, P.O. Watershed is being considered because meeting. A 15-minute period near the Box 1229, Galveston, TX 77553–1229. overflow from this watershed end of the meeting will be available for FOR FURTHER INFORMATION CONTACT: Ms. contributes to flooding in the Addicks verbal public comments. Members of Melinda Fisher, USACE, Regional Reservoir Watershed. Brays Bayou and the public who have requested to make Planning and Environmental Center, at White Oak Bayou could be affected by a verbal comment and whose comments 918–669–7423 or BBTRS@ actions benefiting Buffalo Bayou, so have been deemed relevant under the usace.army.mil. impacts to these watersheds will be process described above, will be allotted evaluated. The scope of the study does SUPPLEMENTARY INFORMATION: not include identifying ways to lower no more than three (3) minutes during 1. Introduction and Background. this period, and will be invited to speak flood risk in the lower Cypress Creek, USACE, in partnership with the Harris Brays Bayou or White Oak Bayou in the order in which their requests County Flood Control District (HCFCD), were received by the DFO and ADFO. watersheds. as the non-Federal sponsor, began a Since the public scoping meetings Thomas P. Smith, feasibility study in 2018 to identify, held in May 2019 and a newsletter sent Chief, Operations and Regulatory Division, evaluate, and recommend actions to in January 2020, the alternatives Directorate of Civil Works, U.S. Army Corp reduce flood risks along Buffalo Bayou (potential ways to address the problems) of Engineers. and its tributaries, both upstream and have evolved based on the preliminary [FR Doc. 2020–21762 Filed 10–1–20; 8:45 am] downstream of Addicks and Barker results of modeling the physical and BILLING CODE 3720–58–P dams. The study will also complete a economic performance of these actions. Dam Safety Modification Evaluation on The study team used this information to Addicks and Barker dams. The BBTRS advance the evaluation of several DEPARTMENT OF DEFENSE is authorized under Section 216 of the alternatives, remove some from further Flood Control Act of 1970 (Pub. L. 91– consideration and add some additional Department of the Army, Corps of 611) and existing project authority. measures for more detailed Engineers Section 216 authorizes USACE to consideration. To explain this updated review a completed navigation, flood information and present the focused Notice of Availability of and Request risk reduction, water supply, or related array of alternatives, the Study Team is for Comment on an Interim Report for project due to significantly changed adding a step to the process: release of the Buffalo Bayou and Tributaries, physical or economic conditions, and to an Interim Report for public review and Texas Resiliency Study report to Congress with comment. AGENCY: Department of the Army, U.S. recommendations regarding Note: This is not a Notice of Availability Army Corps of Engineers, DoD. modification of the project’s structures associated with the release of a Draft ACTION: Notice of availability and or operation, and for improving the Environmental Impact Statement (EIS) in request for comment. quality of the environment in the overall accordance with the National Environmental public interest. Policy Act. This is an interim step intended SUMMARY: The US Army Corps of Existing flood risk management (FRM) to gather public feedback before a Draft EIS Engineers (USACE) requests comments projects in the watersheds include the is released. on the alternatives considered to date by Buffalo Bayou and Tributaries, Texas 2. Interim Report. The Study Team the Buffalo Bayou and Tributaries, Project (Project), which was authorized prepared this Report to present Texas Resiliency Study (BBTRS) to help by Congress in the 1930s for the purpose preliminary findings and a focused inform the Study Team’s of providing flood control for the City of array of alternatives considered to date recommendation to the Chief of Houston and Port of Houston. In the that manage risk and reduce damages Engineers on reducing the flood risk 1940s, Addicks and Barker Dams were under existing and future conditions.

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The report describes the process to • FRM Alternative 8: Combination on March 13, 2020, no in-person identify and screen potential measures Plan. This alternative utilizes a meetings will be held. The USACE will to address the problems and meet the combination of FRM Alternative 2 and host informational sharing sessions purpose and need of the study. The 6, which includes construction of a intended to provide an overview of the report also describes engineering, third reservoir and channel report and findings to date. The study economic, social, and environmental improvements to Buffalo Bayou. website provides the dates and times of analyses conducted to date; it does not • Dam Safety (DS) Alternative 4: the information sessions, as well as up- identify a preferred alternative nor does Tolerable Risk. This alternative to-date access details. it make any recommendations or increases the spillway capacity and 4. Identification of Tentatively decisions. prevents overtopping by reinforcing all Selected Plan and Availability of Draft The Interim Report identifies three four spillways of Addicks and Barker EIS. Depending on input received on the main problems in the study area— dams. The north spillways would be Interim Report, USACE estimates upstream risks to life safety and removed and replaced with stepped issuing a Draft Feasibility Report and property when inflows exceed reservoir roller compacted concrete (RCC) and the Draft Environmental Impact Statement capacity, dam safety risks if a dam south spillways would be replaced with for public review and comment in early articulated concrete block. 2021. At that time, USACE will provide component were to fail during a flood, • and downstream risks to life safety and DS Alternative 5: Tolerable Risk + a 45-day public review period, in property when flows exceed channel As Low as Reasonably Practicable. This accordance with the National capacity. To address each of these alternative is similar to DS Alternative Environmental Policy Act (NEPA). concerns, a number of structural and 4, except that all four spillways would USACE will notify all interested non-structural measures were be removed and replaced with stepped agencies, organizations, and individuals considered including but not limited to: RCC. of the availability of the draft document • System Operations. This alternative Bypass channels, new reservoirs, at that time. involves acquiring additional lands to detention ponds, tunnels, dredging of efficiently and safely operate the Christopher G. Beck, existing detention ponds and reservoirs, reservoirs given the changed spillway modifications, levees/ Brigadier General, U.S. Army, Commanding. circumstances. A range of reservoir floodwalls, channel modifications, [FR Doc. 2020–21763 Filed 10–1–20; 8:45 am] elevations are being considered and property acquisition, changes in BILLING CODE 3720–58–P could extend from current Federally- operations, structure modifications, and owned government land to elevation prairie/wetland restoration. The Study 112 at Addicks Reservoir and elevation DEPARTMENT OF EDUCATION Team screened an initial array of 105 at Barker Reservoir. This would measures based on technical feasibility, involve acquisition of between 14,868 [Docket No.: ED–2020–SCC–0159] performance, cost, and benefits. Eight and 24,707 tracts of land and involve alternatives are identified in the interim relocation of 10,606 to 21,302 Agency Information Collection report as the focused array. These residential properties and 259 to 492 Activities; Comment Request; include: Vocational Rehabilitation Program • commercial properties. No Action. No Federal action is 3. Public Participation. USACE and Corrective Action Plan (CAP) taken to reduce future flood risks. This HCFCD are committed to proactively AGENCY: Office of Special Education and alternative serves as the baseline informing and engaging with the Rehabilitative Services, Department of condition to compare the action community and stakeholders to reach Education (ED). alternatives’ benefits and costs and is effective and implementable flood risk required by policy. management solutions. These agencies ACTION: Notice. • FRM Alternative 2: Cypress Creek intend for public review of the Interim Reservoir. This alternative investigates SUMMARY: In accordance with the Report to provide input on the Paperwork Reduction Act of 1995, ED is the feasibility of increasing storage alternatives and the complexity of capacity in the upper watersheds proposing an extension without change developing solutions. Public and of a currently approved collection. through construction of a third reservoir resource agency feedback on the Interim in the vicinity of the Harris-Waller Report will inform the next level of DATES: Interested persons are invited to County line in the far western part of evaluation to identify a Tentatively submit comments on or before the study area. Selected Plan (TSP). The TSP may be a December 1, 2020. • FRM Alternative 6: Buffalo Bayou single alternative or comprised of ADDRESSES: To access and review all the Channel Improvements. This alternative several alternatives from the focused documents related to the information facilitates more efficient conveyance of array under consideration. collection listed in this notice, please water by widening and deepening Solicitation of Comments: The use http://www.regulations.gov by Buffalo Bayou, while preserving or USACE is soliciting comments on the searching the Docket ID number ED– enhancing the natural characteristics of Interim Report from the public, Federal, 2020–SCC–0159. Comments submitted the aquatic and riparian ecosystem. State, and local agencies, elected in response to this notice should be • FRM Alternative 7: Non-Structural officials, Tribal Nations, and other submitted electronically through the Only. This alternative utilizes actions interested parties. The public comment Federal eRulemaking Portal at http:// that reduce human exposure and period will begin [DATE OF www.regulations.gov by selecting the vulnerability to flooding, but does not PUBLICATION] and written comments Docket ID number or via postal mail, attempt to change the hazard. Property may be submitted by email or through commercial delivery, or hand delivery. acquisition along Buffalo Bayou would postal mail at the addresses provided If the regulations.gov site is not lower the risk to lives and properties above. available to the public for any reason, downstream during all precipitation Meetings: Due to the ‘‘Proclamation ED will temporarily accept comments at events, while also allowing for non- on Declaring a National Emergency [email protected]. Please include the damaging larger releases from the Concerning the Novel Coronavirus docket ID number and the title of the reservoirs during more severe events. Disease (COVID–19) Outbreak’’ issued information collection request when

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requesting documents or submitting (Rehabilitation Act), as amended by LNG filed the Application under the comments. Please note that comments Title IV of the Workforce Innovation Natural Gas Act (NGA) and DOE’s submitted by fax or email and those and Opportunity Act (WIOA), requires policy statement entitled, ‘‘Extending submitted after the comment period will the Commissioner of the Rehabilitation Natural Gas Export Authorizations to not be accepted. Written requests for Services Administration (RSA) to Non-Free Trade Agreement Countries information or comments submitted by conduct annual reviews and periodic Through the Year 2050’’ (Policy postal mail or delivery should be on-site monitoring of the vocational Statement). Protests, motions to addressed to the Director of the Strategic rehabilitation (VR) program to intervene, notices of intervention, and Collections and Clearance Governance determine whether a state agency is written comments on the requested term and Strategy Division, U.S. Department complying substantially with the extension are invited. of Education, 400 Maryland Ave, SW, provisions of its State Plan under DATES: Protests, motions to intervene or LBJ, Room 6W208D, Washington, DC section 101 of the Rehabilitation Act notices of intervention, as applicable, 20202–8240. and with the evaluation standards and requests for additional procedures, and FOR FURTHER INFORMATION CONTACT: For performance indicators established written comments are to be filed using specific questions related to collection under section 106 of the Rehabilitation procedures detailed in the Public activities, please contact Joseph Doney, Act subject to the performance Comment Procedures section no later 202–245–7526. accountability provisions described in than 4:30 p.m., Eastern time, October SUPPLEMENTARY INFORMATION: The Section 116(b) of WIOA. To fulfill its 19, 2020. Department of Education (ED), in monitoring responsibility, RSA reviews ADDRESSES: accordance with the Paperwork a maximum of 15 VR agencies in each Electronic Filing by email: fergas@ Reduction Act of 1995 (PRA) (44 U.S.C. Federal fiscal year. In order to resolve hq.doe.gov. 3506(c)(2)(A)), provides the general findings of non-compliance, RSA Regular Mail: U.S. Department of public and Federal agencies with an requires that VR agencies develop a Energy (FE–34) Office of Regulation, opportunity to comment on proposed, Corrective Action Plan (CAP). The CAP Analysis, and Engagement, Office of revised, and continuing collections of must contain the specific steps that the Fossil Energy, P.O. Box 44375, information. This helps the Department agency will take to resolve each finding, Washington, DC 20026–4375. Hand Delivery or Private Delivery assess the impact of its information timelines for the completion of each Services (e.g., FedEx, UPS, etc.): U.S. collection requirements and minimize step and methods for evaluating that the Department of Energy (FE–34), Office of the public’s reporting burden. It also findings have been resolved. RSA Regulation, Analysis, and Engagement, helps the public understand the requires the agency to report progress Office of Fossil Energy, Forrestal Department’s information collection toward completion of the CAP on a Building, Room 3E–042, 1000 requirements and provide the requested quarterly basis. Independence Avenue SW, Washington, data in the desired format. ED is Dated: September 29, 2020. DC 20585. soliciting comments on the proposed Kate Mullan, information collection request (ICR) that FOR FURTHER INFORMATION CONTACT: PRA Coordinator, Strategic Collections and Beverly Howard or Amy Sweeney, is described below. The Department of Clearance Governance and Strategy Division, U.S. Department of Energy (FE–34), Education is especially interested in Office of Chief Data Officer, Office of public comment addressing the Planning, Evaluation and Policy Office of Regulation, Analysis, and following issues: (1) Is this collection Development. Engagement, Office of Fossil Energy, Forrestal Building, Room 3E–042, 1000 necessary to the proper functions of the [FR Doc. 2020–21797 Filed 10–1–20; 8:45 am] Independence Avenue SW, Washington, Department; (2) will this information be BILLING CODE 4000–01–P processed and used in a timely manner; DC 20585, (202) 586–9387; (202) 586– (3) is the estimate of burden accurate; 2627, [email protected] or (4) how might the Department enhance [email protected]. DEPARTMENT OF ENERGY Cassandra Bernstein or Edward the quality, utility, and clarity of the [FE Docket No. 15–62–LNG] Toyozaki, U.S. Department of Energy information to be collected; and (5) how (GC–76), Office of the Assistant General might the Department minimize the Texas LNG Brownsville LLC; Counsel for Electricity and Fossil burden of this collection on the Application To Amend Export Term Energy, Forrestal Building, Room 6D– respondents, including through the use Through December 31, 2050, for 033, 1000 Independence Avenue SW, of information technology. Please note Existing Non-Free Trade Agreement Washington, DC 20585, (202) 586–9793; that written comments received in Authorization (202) 586–0126, cassandra.bernstein@ response to this notice will be hq.doe.gov or edward.toyozaki@ considered public records. AGENCY: Office of Fossil Energy, hq.doe.gov Title of Collection: Vocational Department of Energy. Rehabilitation Program Corrective ACTION: Notice of application. SUPPLEMENTARY INFORMATION: Action Plan (CAP). On February 10, 2020, in Order No. OMB Control Number: 1820–0694. SUMMARY: The Office of Fossil Energy 4489, DOE/FE authorized Texas LNG to Type of Review: Extension without (FE) of the Department of Energy (DOE) export domestically produced LNG in a change of a currently approved gives notice (Notice) of receipt of an volume equivalent to 204.4 billion cubic collection. application (Application), filed on feet per year of natural gas, pursuant to Respondents/Affected Public: State, , 2020, by Texas LNG NGA section 3(a), 15 U.S.C. 717b(a).1 Local, and Tribal Governments. Brownsville LLC (Texas LNG). Texas Texas LNG is authorized to export this Total Estimated Number of Annual LNG seeks to amend the export term set LNG by vessel from the proposed Texas Responses: 60. forth in its current authorization to Total Estimated Number of Annual export liquefied natural gas (LNG) to 1 Texas LNG Brownsville LLC, DOE/FE Order No. 4489, FE Docket No. 15–62–LNG, Opinion and Burden Hours: 975. non-free trade agreement countries, Order Granting Long-Term Authorization to Export Abstract: Section 107 of the DOE/FE Order No. 4489, to a term Liquefied Natural Gas to Non-Free Trade Agreement Rehabilitation Act of 1973 ending on December 31, 2050. Texas Nations (Feb. 10, 2020).

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LNG Brownsville LLC Liquefied Natural response to public comments received intervene or notice of intervention. The Gas Export Project to be located at the on that Study,8 and the following filing of comments or a protest with Port of Brownsville, Texas, to any environmental documents: respect to the Application will not serve country with which the United States • Addendum to Environmental to make the commenter or protestant a has not entered into a free trade Review Documents Concerning Exports party to the proceeding, although agreement (FTA) requiring national of Natural Gas From the United States, protests and comments received from treatment for trade in natural gas, and 79 FR 48132 (Aug. 15, 2014); 9 persons who are not parties will be with which trade is not prohibited by • Life Cycle Greenhouse Gas considered in determining the U.S. law or policy (non-FTA countries) Perspective on Exporting Liquefied appropriate action to be taken on the for a 20-year term. In the Application,2 Natural Gas From the United States, 79 Application. All protests, comments, Texas LNG asks DOE to extend its FR 32260 (June 4, 2014); 10 and motions to intervene, or notices of current export term to a term ending on • Life Cycle Greenhouse Gas intervention must meet the December 31, 2050, as provided in the Perspective on Exporting Liquefied requirements specified by the Policy Statement.3 Additional details Natural Gas From the United States: regulations in 10 CFR part 590. can be found in the Application, posted 2019 Update, 84 FR 49278 (Sept. 19, Filings may be submitted using one of on the DOE/FE website at: https:// 2019), and DOE/FE’s response to public the following methods: (1) Emailing the www.energy.gov/sites/prod/files/2020/ comments received on that study.11 filing to [email protected], with FE 09/f79/Texas%20LNG%20Brownsville Parties that may oppose the Application Docket No. 15–62–LNG in the title line; %20LLC%202050%20Application.pdf. should address these issues and (2) mailing an original and three paper documents in their comments and/or copies of the filing to the Office of DOE/FE Evaluation protests, as well as other issues deemed Regulation, Analysis, and Engagement In the Policy Statement, DOE adopted relevant to the Application. at the address listed in ADDRESSES; or (3) a term through December 31, 2050 The National Environmental Policy hand delivering an original and three (inclusive of any make-up period), as Act (NEPA), 42 U.S.C. 4321 et seq., paper copies of the filing to the Office the standard export term for long-term requires DOE to give appropriate of Regulation, Analysis, and non-FTA authorizations.4 As the basis consideration to the environmental Engagement at the address listed in for its decision, DOE considered its effects of its proposed decisions. No ADDRESSES. All filings must include a obligations under NGA section 3(a), the final decision will be issued in this reference to FE Docket No. 15–62–LNG. public comments supporting and proceeding until DOE has met its PLEASE NOTE: If submitting a filing via opposing the proposed Policy environmental responsibilities. email, please include all related Statement, and a wide range of Public Comment Procedures documents and attachments (e.g., information bearing on the public exhibits) in the original email In response to this Notice, any person interest.5 DOE explained that, upon correspondence. Please do not include may file a protest, comments, or a receipt of an application under the any active hyperlinks or password motion to intervene or notice of Policy Statement, it would conduct a protection in any of the documents or intervention, as applicable, addressing public interest analysis of the attachments related to the filing. All application under NGA section 3(a). the Application. Interested parties will electronic filings submitted to DOE DOE further stated that ‘‘the public be provided 15 days from the date of must follow these guidelines to ensure interest analysis will be limited to the publication of this Notice in which to that all documents are filed in a timely application for the term extension— submit comments, protests, motions to manner. Any hardcopy filing submitted meaning an intervenor or protestor may intervene, or notices of intervention. greater in length than 50 pages must challenge the requested extension but The public previously was given an also include, at the time of the filing, a not the existing non-FTA order.’’ 6 opportunity to intervene in, protest, and digital copy on disk of the entire Accordingly, in reviewing Texas comment on Texas LNG’s long-term submission. LNG’s Application, DOE/FE will non-FTA application. Therefore, DOE A decisional record on the consider any issues required by law or will not consider comments or protests Application will be developed through policy under NGA section 3(a), as that do not bear directly on the responses to this Notice by parties, informed by the Policy Statement. To requested term extension. including the parties’ written comments the extent appropriate, DOE will Any person wishing to become a party and replies thereto. If no party requests consider the study entitled, to the proceeding must file a motion to additional procedures, a final Opinion Macroeconomic Outcomes of Market and Order may be issued based on the Determined Levels of U.S. LNG Exports at: https://www.energy.gov/sites/prod/files/2018/ official record, including the 7 06/f52/Macroeconomic%20LNG%20Export (2018 LNG Export Study), DOE’s %20Study%202018.pdf. Application and responses filed by 8 U.S. Dep’t of Energy, Study on Macroeconomic parties pursuant to this notice, in 2 Texas LNG Brownsville LLC, Application to Outcomes of LNG Exports: Response to Comments accordance with 10 CFR 590.316. Amend Export Term for Existing Long-Term Received on Study; Notice of Response to The Application is available for Authorization(s) Through December 31, 2050, FE Comments, 83 FR 67251 (Dec. 28, 2018). inspection and copying in the Office of Docket No. 15–62–LNG (Sept. 23, 2020). Texas 9 The Addendum and related documents are LNG’s request regarding its FTA authorization is available at: http://energy.gov/fe/draft-addendum- Regulation, Analysis, and Engagement not subject to this Notice. See 15 U.S.C. 717b(c). environmental-review-documents-concerning- docket room, Room 3E–042, 1000 3 U.S. Dep’t of Energy, Extending Natural Gas exports-natural-gas-united-states. Independence Avenue, SW, Export Authorizations to Non-Free Trade 10 The 2014 Life Cycle Greenhouse Gas Report is Washington, DC 20585. The docket Agreement Countries Through the Year 2050; available at: http://energy.gov/fe/life-cycle- room is open between the hours of 8:00 Notice of Final Policy Statement and Response to greenhouse-gas-perspective-exporting-liquefied- Comments, 85 FR 52237 (Aug. 25, 2020) natural-gas-united-states. a.m. and 4:30 p.m., Monday through [hereinafter Policy Statement]. 11 U.S. Dep’t of Energy, Life Cycle Greenhouse Friday, except Federal holidays. The 4 See id., 85 FR 52247. Gas Perspective on Exporting Liquefied Natural Gas Application and any filed protests, 5 See id., 85 FR 52247. From the United States: 2019 Update—Response to motions to intervene or notice of 6 Id., 85 FR 52247. Comments, 85 FR 72 (Jan. 2, 2020). The 2019 7 See NERA Economic Consulting, Update and related documents are available at: interventions, and comments will also Macroeconomic Outcomes of Market Determined https://fossil.energy.gov/app/docketindex/docket/ be available electronically by going to Levels of U.S. LNG Exports (, 2018), available index/21. the following DOE/FE Web address:

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http://www.fe.doe.gov/programs/ Building, Room 3E–042, 1000 09/f78/CMI%20DOE%20Filing gasregulation/index.html. Independence Avenue SW, Washington, %20Package%209-3-2020.pdf. DC 20585. Signed in Washington, DC, on September DOE/FE Evaluation 28, 2020. FOR FURTHER INFORMATION CONTACT: In the Policy Statement, DOE adopted Amy Sweeney, Benjamin Nussdorf or Amy Sweeney, a term through December 31, 2050 Director, Office of Regulation, Analysis, and U.S. Department of Energy (FE–34), (inclusive of any make-up period), as Engagement, Office of Fossil Energy. Office of Regulation, Analysis, and the standard export term for long-term [FR Doc. 2020–21804 Filed 10–1–20; 8:45 am] Engagement, Office of Fossil Energy, non-FTA authorizations.4 As the basis BILLING CODE 6450–01–P Forrestal Building, Room 3E–042, 1000 for its decision, DOE considered its Independence Avenue SW, Washington, obligations under NGA section 3(a), the DC 20585, (202) 586–7893; (202) 586– DEPARTMENT OF ENERGY public comments supporting and 2627, [email protected] or opposing the proposed Policy [FE Docket No. 12–97–LNG] [email protected]. Statement, and a wide range of Cassandra Bernstein or Edward information bearing on the public Cheniere Marketing, LLC and Corpus Toyozaki, U.S. Department of Energy interest.5 DOE explained that, upon Christi Liquefaction, LLC; Application (GC–76), Office of the Assistant General receipt of an application under the To Amend Export Term Through Counsel for Electricity and Fossil Policy Statement, it would conduct a December 31, 2050, for Existing Non- Energy, Forrestal Building, Room 6D– public interest analysis of the Free Trade Agreement Authorization 033, 1000 Independence Avenue SW, application under NGA section 3(a). Washington, DC 20585, (202) 586–9793; AGENCY: Office of Fossil Energy, DOE further stated that ‘‘the public (202) 586–0126, cassandra.bernstein@ Department of Energy. interest analysis will be limited to the hq.doe.gov or edward.toyozaki@ ACTION: Notice of application. application for the term extension— hq.doe.gov. meaning an intervenor or protestor may SUMMARY: The Office of Fossil Energy SUPPLEMENTARY INFORMATION: On May challenge the requested extension but (FE) of the Department of Energy (DOE) 12, 2015, in Order No. 3638, DOE/FE not the existing non-FTA order.’’ 6 gives notice (Notice) of receipt of an authorized CMI to export domestically Accordingly, in reviewing CMI’s application (Application), filed on produced LNG in a volume equivalent Application, DOE/FE will consider any September 3, 2020, by Cheniere to 767 billion cubic feet per year (Bcf/ issues required by law or policy under Marketing, LLC and Corpus Christi yr) of natural gas, pursuant to NGA NGA section 3(a), as informed by the Liquefaction, LLC (collectively, CMI). section 3(a), 15 U.S.C. 717b(a).1 CMI is Policy Statement. To the extent CMI seeks to amend the export term set authorized to export this LNG by vessel appropriate, DOE will consider the forth in its current authorization to from the Corpus Christi LNG Terminal study entitled, Macroeconomic export liquefied natural gas (LNG) to near Corpus Christi, Texas, in San Outcomes of Market Determined Levels non-free trade agreement countries, Patricio and Nueces Counties, to any of U.S. LNG Exports (2018 LNG Export 7 DOE/FE Order No. 3638, to a term country with which the United States Study), DOE’s response to public 8 ending on December 31, 2050. CMI filed has not entered into a free trade comments received on that Study, and the Application under the Natural Gas agreement (FTA) requiring national the following environmental Act (NGA) and DOE’s policy statement documents: treatment for trade in natural gas, and • entitled, ‘‘Extending Natural Gas Export with which trade is not prohibited by Addendum to Environmental Authorizations to Non-Free Trade U.S. law or policy (non-FTA countries) Review Documents Concerning Exports Agreement Countries Through the Year for a 20-year term. In the Application,2 of Natural Gas From the United States, 2050’’ (Policy Statement). Protests, 79 FR 48132 (Aug. 15, 2014); 9 CMI asks DOE to extend its current • motions to intervene, notices of export term to a term ending on Life Cycle Greenhouse Gas intervention, and written comments on December 31, 2050, as provided in the Perspective on Exporting Liquefied the requested term extension are 3 Natural Gas From the United States, 79 Policy Statement. Additional details 10 invited. can be found in the Application, posted FR 32260 (June 4, 2014); and • Life Cycle Greenhouse Gas DATES: Protests, motions to intervene or on the DOE/FE website at: https:// www.energy.gov/sites/prod/files/2020/ Perspective on Exporting Liquefied notices of intervention, as applicable, Natural Gas From the United States: requests for additional procedures, and 1 Cheniere Marketing, LLC and Corpus Christi written comments are to be filed using 4 See id., 85 FR 52247. Liquefaction, LLC, DOE/FE Order No. 3638, FE procedures detailed in the Public 5 Docket No. 12–97–LNG, Final Opinion and Order See id., 85 FR 52247. Comment Procedures section no later Granting Long-Term, Multi-Contract Authorization 6 Id., 85 FR 52247. than 4:30 p.m., Eastern time, October to Export Liquefied Natural Gas by Vessel from the 7 See NERA Economic Consulting, 19, 2020. Proposed Corpus Christi Liquefaction Project to be Macroeconomic Outcomes of Market Determined Levels of U.S. LNG Exports (June 7, 2018), available ADDRESSES: Located in Corpus Christi, Texas, to Non-Free Trade Agreement Nations (, 2015), reh’g denied, at: https://www.energy.gov/sites/prod/files/2018/ Electronic Filing by email: fergas@ DOE/FE Order No. 3638–A (, 2016). 06/f52/Macroeconomic%20LNG%20Export hq.doe.gov. 2 Cheniere Marketing, LLC and Corpus Christi %20Study%202018.pdf. Regular Mail: U.S. Department of Liquefaction, LLC, Application to Amend Export 8 U.S. Dep’t of Energy, Study on Macroeconomic Energy (FE–34), Office of Regulation, Term for Existing Long-Term Authorizations Outcomes of LNG Exports: Response to Comments Analysis, and Engagement, Office of Through December 31, 2050, FE Docket Nos. 12– Received on Study; Notice of Response to 97–LNG, et al. (Sept. 3, 2020). CMI’s request Comments, 83 FR 67251 (Dec. 28, 2018). Fossil Energy, P.O. Box 44375, regarding its FTA authorizations are not subject to 9 The Addendum and related documents are Washington, DC 20026–4375. this Notice. See 15 U.S.C. 717b(c). available at: http://energy.gov/fe/draft-addendum- Hand Delivery or Private Delivery 3 U.S. Dep’t of Energy, Extending Natural Gas environmental-review-documents-concerning- Services (e.g., FedEx, UPS, etc.): U.S. Export Authorizations to Non-Free Trade exports-natural-gas-united-states. Agreement Countries Through the Year 2050; 10 The 2014 Life Cycle Greenhouse Gas Report is Department of Energy (FE–34), Office of Notice of Final Policy Statement and Response to available at: http://energy.gov/fe/life-cycle- Regulation, Analysis, and Engagement, Comments, 85 FR 52237 (Aug. 25, 2020) greenhouse-gas-perspective-exporting-liquefied- Office of Fossil Energy, Forrestal [hereinafter Policy Statement]. natural-gas-united-states.

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2019 Update, 84 FR 49278 (Sept. 19, ADDRESSES. All filings must include a gives notice (Notice) of receipt of an 2019), and DOE/FE’s response to public reference to FE Docket No. 12–97–LNG. application (Application), filed on comments received on that study.11 PLEASE NOTE: If submitting a filing via September 18, 2020, by ECA Parties that may oppose the Application email, please include all related Liquefaction, S. de R.L. de C.V. (ECA should address these issues and documents and attachments (e.g., Liquefaction). ECA Liquefaction seeks to documents in their comments and/or exhibits) in the original email amend the export term set forth in its protests, as well as other issues deemed correspondence. Please do not include current authorization, DOE/FE Order relevant to the Application. any active hyperlinks or password No. 4364, to a term ending on December The National Environmental Policy protection in any of the documents or 31, 2050. Under Order No. 4364, ECA Act (NEPA), 42 U.S.C. 4321 et seq., attachments related to the filing. All Liquefaction is authorized to re-export requires DOE to give appropriate electronic filings submitted to DOE U.S.-sourced natural gas in the form of consideration to the environmental must follow these guidelines to ensure liquefied natural gas (LNG) from its effects of its proposed decisions. No that all documents are filed in a timely proposed Mid-Scale Project to be final decision will be issued in this manner. Any hardcopy filing submitted located in Mexico to non-free trade proceeding until DOE has met its greater in length than 50 pages must agreement countries. ECA Liquefaction environmental responsibilities. also include, at the time of the filing, a filed the Application under the Natural digital copy on disk of the entire Public Comment Procedures Gas Act (NGA) and DOE’s policy submission. statement entitled, ‘‘Extending Natural In response to this Notice, any person A decisional record on the Gas Export Authorizations to Non-Free may file a protest, comments, or a Application will be developed through Trade Agreement Countries Through the motion to intervene or notice of responses to this Notice by parties, Year 2050’’ (Policy Statement). Protests, intervention, as applicable, addressing including the parties’ written comments motions to intervene, notices of the Application. Interested parties will and replies thereto. If no party requests intervention, and written comments on be provided 15 days from the date of additional procedures, a final Opinion the requested term extension are publication of this Notice in which to and Order may be issued based on the invited. submit comments, protests, motions to official record, including the intervene, or notices of intervention. Application and responses filed by DATES: Protests, motions to intervene or The public previously was given an parties pursuant to this notice, in notices of intervention, as applicable, opportunity to intervene in, protest, and accordance with 10 CFR 590.316. requests for additional procedures, and comment on CMI’s long-term non-FTA The Application is available for written comments are to be filed using application. Therefore, DOE will not inspection and copying in the Office of procedures detailed in the Public consider comments or protests that do Regulation, Analysis, and Engagement Comment Procedures section no later not bear directly on the requested term docket room, Room 3E–042, 1000 than 4:30 p.m., Eastern time, October extension. Independence Avenue SW, Washington, 19, 2020. Any person wishing to become a party DC 20585. The docket room is open ADDRESSES: to the proceeding must file a motion to between the hours of 8:00 a.m. and 4:30 Electronic Filing by email: fergas@ intervene or notice of intervention. The p.m., Monday through Friday, except hq.doe.gov. filing of comments or a protest with Federal holidays. The Application and Regular Mail: U.S. Department of respect to the Application will not serve any filed protests, motions to intervene Energy (FE–34), Office of Regulation, to make the commenter or protestant a or notice of interventions, and Analysis, and Engagement, Office of party to the proceeding, although comments will also be available Fossil Energy, P.O. Box 44375, protests and comments received from electronically by going to the following Washington, DC 20026–4375. persons who are not parties will be DOE/FE Web address: http:// Hand Delivery or Private Delivery considered in determining the www.fe.doe.gov/programs/ Services (e.g., FedEx, UPS, etc.): U.S. appropriate action to be taken on the gasregulation/index.html. Department of Energy (FE–34), Office of Application. All protests, comments, Signed in Washington, DC, on September Regulation, Analysis, and Engagement, motions to intervene, or notices of 29, 2020. Office of Fossil Energy, Forrestal intervention must meet the Amy Sweeney, Building, Room 3E–042, 1000 requirements specified by the Director, Office of Regulation, Analysis, and Independence Avenue SW, Washington, regulations in 10 CFR part 590. Engagement, Office of Fossil Energy. DC 20585. Filings may be submitted using one of [FR Doc. 2020–21850 Filed 10–1–20; 8:45 am] the following methods: (1) Emailing the FOR FURTHER INFORMATION CONTACT: BILLING CODE 6450–01–P filing to [email protected], with FE Benjamin Nussdorf or Amy Sweeney, Docket No. 12–97–LNG in the title line; U.S. Department of Energy (FE–34), Office of Regulation, Analysis, and (2) mailing an original and three paper DEPARTMENT OF ENERGY copies of the filing to the Office of Engagement, Office of Fossil Energy, Regulation, Analysis, and Engagement [FE Docket No. 18–144–LNG] Forrestal Building, Room 3E–042, 1000 at the address listed in ADDRESSES; or (3) Independence Avenue SW, Washington, ECA Liquefaction, S. de R.L. de C.V.; DC 20585, (202) 586–7893; (202) 586– hand delivering an original and three Application To Amend Export Term paper copies of the filing to the Office 2627, [email protected] or Through December 31, 2050, for [email protected]. of Regulation, Analysis, and Existing Non-Free Trade Agreement Engagement at the address listed in Cassandra Bernstein or Edward Authorization Toyozaki, U.S. Department of Energy 11 U.S. Dep’t of Energy, Life Cycle Greenhouse AGENCY: Office of Fossil Energy, (GC–76), Office of the Assistant General Gas Perspective on Exporting Liquefied Natural Gas Department of Energy. Counsel for Electricity and Fossil From the United States: 2019 Update—Response to Energy, Forrestal Building, Room 6D– Comments, 85 FR 72 (Jan. 2, 2020). The 2019 ACTION: Notice of application. Update and related documents are available at: 033, 1000 Independence Avenue SW, https://fossil.energy.gov/app/docketindex/docket/ SUMMARY: The Office of Fossil Energy Washington, DC 20585, (202) 586–9793; index/21. (FE) of the Department of Energy (DOE) (202) 586–0126,

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[email protected] or obligations under NGA section 3(a), the documents in their comments and/or [email protected]. public comments supporting and protests, as well as other issues deemed SUPPLEMENTARY INFORMATION: DOE/FE opposing the proposed Policy relevant to the Application. issued Order No. 4364 to Energı´a Costa Statement, and a wide range of The National Environmental Policy Azul, S. de R.L. de C.V. on , information bearing on the public Act (NEPA), 42 U.S.C. 4321 et seq., 2019, and subsequently approved the interest.5 DOE explained that, upon requires DOE to give appropriate transfer of the order to the current receipt of an application under the consideration to the environmental authorization holder, ECA Policy Statement, it would conduct a effects of its proposed decisions. No Liquefaction.1 Under Order No. 4364, public interest analysis of the final decision will be issued in this ECA Liquefaction is authorized to re- application under NGA section 3(a). proceeding until DOE has met its export U.S.-sourced natural gas in the DOE further stated that ‘‘the public environmental responsibilities. form of LNG in a volume equivalent to interest analysis will be limited to the Public Comment Procedures 161 billion cubic feet per year of natural application for the term extension— gas, pursuant to NGA section 3(a), 15 meaning an intervenor or protestor may In response to this Notice, any person U.S.C. 717b(a). ECA Liquefaction is challenge the requested extension but may file a protest, comments, or a authorized to re-export this LNG by not the existing non-FTA order.’’ 6 motion to intervene or notice of vessel from the proposed ECA Mid- Accordingly, in reviewing ECA intervention, as applicable, addressing Scale Project, to be located north of Liquefaction’s Application, DOE/FE will the Application. Interested parties will Ensenada, Baja California, Mexico, to consider any issues required by law or be provided 15 days from the date of any country with which the United policy under NGA section 3(a), as publication of this Notice in which to States has not entered into a free trade informed by the Policy Statement. To submit comments, protests, motions to agreement (FTA) requiring national the extent appropriate, DOE will intervene, or notices of intervention. treatment for trade in natural gas, and consider the study entitled, The public previously was given an with which trade is not prohibited by Macroeconomic Outcomes of Market opportunity to intervene in, protest, and U.S. law or policy (non-FTA countries) Determined Levels of U.S. LNG Exports comment on ECA Liquefaction’s long- for a 20-year term. In the Application,2 (2018 LNG Export Study),7 DOE’s term non-FTA application. Therefore, ECA Liquefaction asks DOE to extend its response to public comments received DOE will not consider comments or current export term to a term ending on on that Study,8 and the following protests that do not bear directly on the December 31, 2050, as provided in the environmental documents: requested term extension. Any person wishing to become a party Policy Statement.3 Additional details • Addendum to Environmental to the proceeding must file a motion to can be found in the Application, posted Review Documents Concerning Exports intervene or notice of intervention. The on the DOE/FE website at: https:// of Natural Gas From the United States, filing of comments or a protest with www.energy.gov/sites/prod/files/2020/ 79 FR 48132 (Aug. 15, 2014); 9 09/f79/ECA%20Liquefaction%20- • Life Cycle Greenhouse Gas respect to the Application will not serve %20Application%20for%20Term Perspective on Exporting Liquefied to make the commenter or protestant a %20Extensions%2018-144-LNG.pdf. Natural Gas From the United States, 79 party to the proceeding, although protests and comments received from FR 32260 (June 4, 2014); 10 and DOE/FE Evaluation • Life Cycle Greenhouse Gas persons who are not parties will be In the Policy Statement, DOE adopted Perspective on Exporting Liquefied considered in determining the a term through December 31, 2050 Natural Gas From the United States: appropriate action to be taken on the (inclusive of any make-up period), as 2019 Update, 84 FR 49278 (Sept. 19, Application. All protests, comments, the standard export term for long-term 2019), and DOE/FE’s response to public motions to intervene, or notices of non-FTA authorizations.4 As the basis comments received on that study.11 intervention must meet the for its decision, DOE considered its requirements specified by the Parties that may oppose the Application regulations in 10 CFR part 590. should address these issues and 1 ECA Liquefaction, S. de R.L. de C.V., DOE/FE Filings may be submitted using one of Order No. 4364, FE Docket No. 18–144–LNG, the following methods: (1) Emailing the 5 Opinion and Order Granting Long-Term See id., 85 FR 52247. filing to [email protected], with FE 6 Id., 85 FR 52247. Authorization to Re-Export U.S.-Sourced Natural Docket No. 18–144–LNG in the title Gas in the Form of Liquefied Natural Gas from 7 See NERA Economic Consulting, Mexico to Non-Free Trade Agreement Countries Macroeconomic Outcomes of Market Determined line; (2) mailing an original and three (ECA Mid-Scale Project) (Mar. 29, 2019), amended Levels of U.S. LNG Exports (June 7, 2018), available paper copies of the filing to the Office by DOE/FE Order No. 4364–A (Oct. 7, 2019) at: https://www.energy.gov/sites/prod/files/2018/ of Regulation, Analysis, and (transferring authorization from Energı´a Costa Azul, 06/f52/Macroeconomic%20LNG%20Export Engagement at the address listed in S. de R.L. de C.V. to ECA Liquefaction, S. de R.L. %20Study%202018.pdf. de C.V.). 8 U.S. Dep’t of Energy, Study on Macroeconomic ADDRESSES; or (3) hand delivering an 2 ECA Liquefaction, S. de R.L. de C.V., Outcomes of LNG Exports: Response to Comments original and three paper copies of the Application to Amend Export Term for Existing Received on Study; Notice of Response to filing to the Office of Regulation, Long-Term Authorizations Through December 31, Comments, 83 FR 67251 (Dec. 28, 2018). Analysis, and Engagement at the 9 2050, FE Docket No. 18–144–LNG (Sept. 18, 2020). The Addendum and related documents are ADDRESSES ECA Liquefaction is currently authorized under a available at: http://energy.gov/fe/draft-addendum- address listed in . All filings separate order (DOE/FE Order No. 4317) to export environmental-review-documents-concerning- must include a reference to FE Docket domestically produced natural gas to Mexico and to exports-natural-gas-united-states. No. 18–144–LNG. PLEASE NOTE: If re-export the natural gas in the form of LNG to FTA 10 The 2014 Life Cycle Greenhouse Gas Report is submitting a filing via email, please countries. ECA Liquefaction’s request regarding its available at: http://energy.gov/fe/life-cycle- include all related documents and FTA authorization is not subject to this Notice. See greenhouse-gas-perspective-exporting-liquefied- 15 U.S.C. 717b(c). natural-gas-united-states. attachments (e.g., exhibits) in the 3 U.S. Dep’t of Energy, Extending Natural Gas 11 U.S. Dep’t of Energy, Life Cycle Greenhouse original email correspondence. Please Export Authorizations to Non-Free Trade Gas Perspective on Exporting Liquefied Natural Gas do not include any active hyperlinks or Agreement Countries Through the Year 2050; From the United States: 2019 Update—Response to password protection in any of the Notice of Final Policy Statement and Response to Comments, 85 FR 72 (Jan. 2, 2020). The 2019 Comments, 85 FR 52237 (Aug. 25, 2020) Update and related documents are available at: documents or attachments related to the [hereinafter Policy Statement]. https://fossil.energy.gov/app/docketindex/docket/ filing. All electronic filings submitted to 4 See id., 85 FR 52247. index/21. DOE must follow these guidelines to

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ensure that all documents are filed in a proposed Large-Scale Project to be this LNG by vessel from the proposed timely manner. Any hardcopy filing located in Mexico to non-free trade ECA Large-Scale Project, to be located submitted greater in length than 50 agreement countries. ECA filed the north of Ensenada, Baja California, pages must also include, at the time of Application under the Natural Gas Act Mexico, to any country with which the the filing, a digital copy on disk of the (NGA) and DOE’s policy statement United States has not entered into a free entire submission. entitled, ‘‘Extending Natural Gas Export trade agreement (FTA) requiring A decisional record on the Authorizations to Non-Free Trade national treatment for trade in natural Application will be developed through Agreement Countries Through the Year gas, and with which trade is not responses to this Notice by parties, 2050’’ (Policy Statement). Protests, prohibited by U.S. law or policy (non- including the parties’ written comments motions to intervene, notices of FTA countries) for a 20-year term. In the and replies thereto. If no party requests intervention, and written comments on Application,2 ECA asks DOE to extend additional procedures, a final Opinion the requested term extension are its current export term to a term ending and Order may be issued based on the invited. on December 31, 2050, as provided in the Policy Statement.3 Additional official record, including the DATES: Protests, motions to intervene or details can be found in the Application and responses filed by notices of intervention, as applicable, Application,4 posted on the DOE/FE parties pursuant to this notice, in requests for additional procedures, and website at: https://www.energy.gov/ accordance with 10 CFR 590.316. written comments are to be filed using sites/prod/files/2020/09/f79/Energia The Application is available for procedures detailed in the Public %20Costa%20Azul%20- inspection and copying in the Office of Comment Procedures section no later %20Application%20for%20Term Regulation, Analysis, and Engagement than 4:30 p.m., Eastern time, October %20Extensions%2018-145-LNG.pdf. docket room, Room 3E–042, 1000 19, 2020. Independence Avenue, SW, ADDRESSES: DOE/FE Evaluation Washington, DC 20585. The docket Electronic Filing by email: fergas@ In the Policy Statement, DOE adopted room is open between the hours of 8:00 hq.doe.gov. a.m. and 4:30 p.m., Monday through a term through December 31, 2050 Regular Mail: U.S. Department of (inclusive of any make-up period), as Friday, except Federal holidays. The Energy (FE–34), Office of Regulation, Application and any filed protests, the standard export term for long-term Analysis, and Engagement, Office of non-FTA authorizations.5 As the basis motions to intervene or notice of Fossil Energy, P.O. Box 44375, interventions, and comments will also for its decision, DOE considered its Washington, DC 20026–4375. obligations under NGA section 3(a), the be available electronically by going to Hand Delivery or Private Delivery public comments supporting and the following DOE/FE Web address: Services (e.g., FedEx, UPS, etc.): U.S. opposing the proposed Policy http://www.fe.doe.gov/programs/ Department of Energy (FE–34), Office of Statement, and a wide range of gasregulation/index.html. Regulation, Analysis, and Engagement, information bearing on the public Signed in Washington, DC, on September Office of Fossil Energy, Forrestal interest.6 DOE explained that, upon 29, 2020. Building, Room 3E–042, 1000 receipt of an application under the Amy Sweeney, Independence Avenue SW, Washington, Policy Statement, it would conduct a Director, Office of Regulation, Analysis, and DC 20585. public interest analysis of the Engagement, Office of Fossil Energy. FOR FURTHER INFORMATION CONTACT: application under NGA section 3(a). [FR Doc. 2020–21846 Filed 10–1–20; 8:45 am] Benjamin Nussdorf or Amy Sweeney, DOE further stated that ‘‘the public BILLING CODE 6450–01–P U.S. Department of Energy (FE–34), Office of Regulation, Analysis, and Opinion and Order Granting Long-Term Engagement, Office of Fossil Energy, Authorization to Re-Export U.S-Sourced Natural DEPARTMENT OF ENERGY Forrestal Building, Room 3E–042, 1000 Gas in the Form of Liquefied Natural Gas from Independence Avenue SW, Washington, Mexico to Non-Free Trade Agreement Countries [FE Docket No. 18–145–LNG] (ECA Large-Scale Project) (Mar. 29, 2019). DC 20585, (202) 586–7893; (202) 586– 2 Energı´a Costa Azul, S. de R.L. de C.V., ´ 2627, [email protected] or Application to Amend Export Term for Existing Energıa Costa Azul, S. de R.L. de C.V.; Long-Term Authorizations Through December 31, Application To Amend Export Term [email protected]. Cassandra Bernstein or Edward 2050, FE Docket No. 18–145–LNG (Sept. 18, 2020). Through December 31, 2050, for ECA is currently authorized under a separate order Toyozaki, U.S. Department of Energy Existing Non-Free Trade Agreement (DOE/FE Order No. 4318) to export domestically (GC–76), Office of the Assistant General produced natural gas to Mexico and to re-export the Authorization Counsel for Electricity and Fossil natural gas in the form of LNG to FTA countries. Energy, Forrestal Building, Room 6D– ECA’s request regarding its FTA authorization is not AGENCY: Office of Fossil Energy, subject to this Notice. See 15 U.S.C. 717b(c). Department of Energy. 033, 1000 Independence Avenue SW, 3 U.S. Dep’t of Energy, Extending Natural Gas ACTION: Notice of application. Washington, DC 20585, (202) 586–9793; Export Authorizations to Non-Free Trade (202) 586–0126, cassandra.bernstein@ Agreement Countries Through the Year 2050; SUMMARY: The Office of Fossil Energy hq.doe.gov or edward.toyozaki@ Notice of Final Policy Statement and Response to Comments, 85 FR 52237 (Aug. 25, 2020) (FE) of the Department of Energy (DOE) hq.doe.gov. [hereinafter Policy Statement]. gives notice (Notice) of receipt of an SUPPLEMENTARY INFORMATION: On DOE/FE notes that the Application application (Application), filed on 29, 2019, in Order No. 4365, DOE/FE inadvertently references DOE/FE Order Nos. 4364 September 18, 2020, by Energı´a Costa and 4317 (orders issued to ECA’s affiliate for the authorized ECA to re-export U.S.- ECA Mid-Scale Project in FE Docket No. 18–144– Azul, S. de R.L. de C.V. (ECA). ECA sourced natural gas in the form of LNG LNG) in certain places, such as in the chart on page seeks to amend the export term set forth in a volume equivalent to 475 billion 4. However, ECA’s existing orders in this in its current authorization, DOE/FE cubic feet per year of natural gas, proceeding, FE Docket No. 18–145–LNG, are DOE/ Order No. 4365, to a term ending on FE Order No. 4365 (non-FTA) and Order No. 4318 pursuant to NGA section 3(a), 15 U.S.C. (FTA), as indicated elsewhere in the Application. December 31, 2050. Under Order No. 717b(a).1 ECA is authorized to re-export As stated above, only ECA’s non-FTA authorization, 4365, ECA is authorized to re-export DOE/FE Order No. 4365, is subject to this Notice. U.S.-sourced natural gas in the form of 1 Energı´a Costa Azul, S. de R.L. de C.V., DOE/FE 5 See Policy Statement, 85 FR 52247. liquefied natural gas (LNG) from its Order No. 4365, FE Docket No. 18–145–LNG, 6 See id., 85 FR 52247.

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interest analysis will be limited to the Public Comment Procedures additional procedures, a final Opinion application for the term extension— In response to this Notice, any person and Order may be issued based on the meaning an intervenor or protestor may may file a protest, comments, or a official record, including the challenge the requested extension but motion to intervene or notice of Application and responses filed by 7 not the existing non-FTA order.’’ intervention, as applicable, addressing parties pursuant to this notice, in Accordingly, in reviewing ECA’s the Application. Interested parties will accordance with 10 CFR 590.316. Application, DOE/FE will consider any be provided 15 days from the date of The Application is available for issues required by law or policy under publication of this Notice in which to inspection and copying in the Office of NGA section 3(a), as informed by the submit comments, protests, motions to Regulation, Analysis, and Engagement Policy Statement. To the extent intervene, or notices of intervention. docket room, Room 3E–042, 1000 appropriate, DOE will consider the The public previously was given an Independence Avenue SW, Washington, study entitled, Macroeconomic opportunity to intervene in, protest, and DC 20585. The docket room is open Outcomes of Market Determined Levels comment on ECA’s long-term non-FTA between the hours of 8:00 a.m. and 4:30 of U.S. LNG Exports (2018 LNG Export application. Therefore, DOE will not p.m., Monday through Friday, except Study),8 DOE’s response to public consider comments or protests that do Federal holidays. The Application and comments received on that Study,9 and not bear directly on the requested term any filed protests, motions to intervene the following environmental extension. or notice of interventions, and documents: Any person wishing to become a party comments will also be available • Addendum to Environmental to the proceeding must file a motion to electronically by going to the following Review Documents Concerning Exports intervene or notice of intervention. The DOE/FE Web address: http:// of Natural Gas From the United States, filing of comments or a protest with www.fe.doe.gov/programs/ 79 FR 48132 (Aug. 15, 2014); 10 respect to the Application will not serve gasregulation/index.html. • Life Cycle Greenhouse Gas to make the commenter or protestant a Signed in Washington, DC, on September Perspective on Exporting Liquefied party to the proceeding, although 29, 2020. Natural Gas From the United States, 79 protests and comments received from Amy Sweeney, FR 32260 (June 4, 2014); 11 and persons who are not parties will be Director, Office of Regulation, Analysis, and • Life Cycle Greenhouse Gas considered in determining the Engagement, Office of Fossil Energy. Perspective on Exporting Liquefied appropriate action to be taken on the [FR Doc. 2020–21849 Filed 10–1–20; 8:45 am] Natural Gas From the United States: Application. All protests, comments, BILLING CODE 6450–01–P 2019 Update, 84 FR 49278 (Sept. 19, motions to intervene, or notices of 2019), and DOE/FE’s response to public intervention must meet the comments received on that study.12 requirements specified by the DEPARTMENT OF ENERGY Parties that may oppose the regulations in 10 CFR part 590. [FE Docket No. 19–134–LNG] Application should address these issues Filings may be submitted using one of and documents in their comments and/ the following methods: (1) Emailing the Commonwealth LNG, LLC; Application or protests, as well as other issues filing to [email protected], with FE To Amend Requested Export Term in deemed relevant to the Application. Docket No. 18–145–LNG in the title Pending Long-Term Application The National Environmental Policy line; (2) mailing an original and three Through December 31, 2050 Act (NEPA), 42 U.S.C. 4321 et seq., paper copies of the filing to the Office AGENCY: Office of Fossil Energy, requires DOE to give appropriate of Regulation, Analysis, and Department of Energy. consideration to the environmental Engagement at the address listed in effects of its proposed decisions. No ADDRESSES; or (3) hand delivering an ACTION: Notice of application. final decision will be issued in this original and three paper copies of the filing to the Office of Regulation, SUMMARY: The Office of Fossil Energy proceeding until DOE has met its (FE) of the Department of Energy (DOE) environmental responsibilities. Analysis, and Engagement at the address listed in ADDRESSES. All filings gives notice (Notice) of receipt of an must include a reference to FE Docket application (Application), filed on 7 Id., 85 FR 52247. No. 18–145–LNG. PLEASE NOTE: If , 2020, by Commonwealth 8 See NERA Economic Consulting, LNG, LLC (Commonwealth). Macroeconomic Outcomes of Market Determined submitting a filing via email, please Levels of U.S. LNG Exports (June 7, 2018), available include all related documents and Commonwealth seeks to amend the at: https://www.energy.gov/sites/prod/files/2018/ attachments (e.g., exhibits) in the export term set forth in its pending 06/f52/Macroeconomic%20LNG%20Export original email correspondence. Please application requesting authorization to %20Study%202018.pdf. export liquefied natural gas (LNG) to 9 do not include any active hyperlinks or U.S. Dep’t of Energy, Study on Macroeconomic non-free trade agreement countries to a Outcomes of LNG Exports: Response to Comments password protection in any of the Received on Study; Notice of Response to documents or attachments related to the term ending on December 31, 2050. Comments, 83 FR 67251 (Dec. 28, 2018). filing. All electronic filings submitted to Commonwealth filed the Application 10 The Addendum and related documents are DOE must follow these guidelines to under the Natural Gas Act (NGA) and available at: http://energy.gov/fe/draft-addendum- DOE’s policy statement entitled, environmental-review-documents-concerning- ensure that all documents are filed in a exports-natural-gas-united-states. timely manner. Any hardcopy filing ‘‘Extending Natural Gas Export 11 The 2014 Life Cycle Greenhouse Gas Report is submitted greater in length than 50 Authorizations to Non-Free Trade available at: http://energy.gov/fe/life-cycle- pages must also include, at the time of Agreement Countries Through the Year greenhouse-gas-perspective-exporting-liquefied- the filing, a digital copy on disk of the 2050’’ (Policy Statement). Protests, natural-gas-united-states. motions to intervene, notices of 12 U.S. Dep’t of Energy, Life Cycle Greenhouse entire submission. Gas Perspective on Exporting Liquefied Natural Gas A decisional record on the intervention, and written comments on From the United States: 2019 Update—Response to Application will be developed through the requested term extension are Comments, 85 FR 72 (Jan. 2, 2020). The 2019 invited. Update and related documents are available at: responses to this Notice by parties, https://fossil.energy.gov/app/docketindex/docket/ including the parties’ written comments DATES: Protests, motions to intervene or index/21. and replies thereto. If no party requests notices of intervention, as applicable,

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requests for additional procedures, and this Application,2 Commonwealth asks • Addendum to Environmental written comments are to be filed using to amend the export term requested in Review Documents Concerning Exports procedures detailed in the Public its pending non-FTA application to a of Natural Gas From the United States, Comment Procedures section no later term ending on December 31, 2050, as 79 FR 48132 (Aug. 15, 2014); 10 than 4:30 p.m., Eastern time, October provided in the Policy Statement.3 • Life Cycle Greenhouse Gas 19, 2020. Additional details can be found in the Perspective on Exporting Liquefied ADDRESSES: Application, posted on the DOE/FE Natural Gas From the United States, 79 Electronic Filing by email fergas@ website at: https://www.energy.gov/ FR 32260 (June 4, 2014); 11 and • hq.doe.gov. sites/prod/files/2020/09/f78/ Life Cycle Greenhouse Gas Regular Mail Commonwealth%20DOE Perspective on Exporting Liquefied U.S. Department of Energy (FE–34), %20Amendment%20Application.pdf. Natural Gas From the United States: Office of Regulation, Analysis, and Because the Application requests a 2019 Update, 84 FR 49278 (Sept. 19, Engagement, Office of Fossil Energy, material change to Commonwealth’s 2019), and DOE/FE’s response to public P.O. Box 44375, Washington, DC pending application, DOE is publishing comments received on that study.12 20026–4375. this notice in the Federal Register to Parties that may oppose the Hand Delivery or Private Delivery provide the public with an opportunity Application should address these issues Services (e.g., FedEx, UPS, etc.) to intervene, comment, and/or protest and documents in their comments and/ U.S. Department of Energy (FE–34), the requested extended export term.4 or protests as they relate to the amendment of the requested export term Office of Regulation, Analysis, and DOE/FE Evaluation Engagement, Office of Fossil Energy, only, as well as any other issues deemed Forrestal Building, Room 3E–042, In the Policy Statement, DOE adopted relevant to the requested term 1000 Independence Avenue SW, a term through December 31, 2050 extension. Washington, DC 20585. (inclusive of any make-up period), as The National Environmental Policy the standard export term for long-term Act (NEPA), 42 U.S.C. 4321 et seq., FOR FURTHER INFORMATION CONTACT: non-FTA authorizations.5 As the basis requires DOE to give appropriate Benjamin Nussdorf or Amy Sweeney, for its decision, DOE considered its consideration to the environmental U.S. Department of Energy (FE–34), obligations under NGA section 3(a), the effects of its proposed decisions. No Office of Regulation, Analysis, and public comments supporting and final decision will be issued in this Engagement, Office of Fossil Energy, opposing the proposed Policy proceeding until DOE has met its Forrestal Building, Room 3E–042, Statement, and a wide range of environmental responsibilities. 1000 Independence Avenue SW, information bearing on the public Washington, DC 20585, (202) 586– Public Comment Procedures interest.6 DOE explained that, upon 7893; (202) 586–2627, receipt of an application under the In response to this Notice, any person [email protected] or Policy Statement, it would conduct a may file a protest, comments, or a [email protected]. public interest analysis of the motion to intervene or notice of Cassandra Bernstein or Edward application (or amended application) intervention, as applicable, addressing Toyozaki, U.S. Department of Energy under NGA section 3(a).7 the Application. Interested parties will (GC–76), Office of the Assistant Accordingly, in reviewing be provided 15 days from the date of General Counsel for Electricity and Commonwealth’s Application, DOE/FE publication of this Notice in which to Fossil Energy, Forrestal Building, will consider any issues required by law submit comments, protests, motions to Room 6D–033, 1000 Independence or policy under NGA section 3(a), as intervene, or notices of intervention. Avenue SW, Washington, DC 20585, informed by the Policy Statement. To The public previously was given an (202) 586–9793; (202) 586–0126, the extent appropriate, DOE will opportunity to intervene in, protest, and [email protected] or consider the study entitled, comment on Commonwealth’s pending [email protected]. Macroeconomic Outcomes of Market long-term non-FTA application. SUPPLEMENTARY INFORMATION: Determined Levels of U.S. LNG Exports Therefore, DOE will not consider On , 2019, Commonwealth (2018 LNG Export Study),8 DOE’s comments or protests that do not bear filed an application with DOE/FE response to public comments received directly on Commonwealth’s requesting long-term, multi-contract on that Study,9 and the following amendment to the requested export authorization to export domestically environmental documents: term. produced LNG in a volume equivalent Any person wishing to become a party to 441.4 billion cubic feet per year of 2 Commonwealth LNG, LLC, Application to to the proceeding must file a motion to natural gas, pursuant to NGA section Amend Export Term in Pending Long-Term intervene or notice of intervention. The 1 Application Through December 31, 2050, FE Docket 3(a), 15 U.S.C. 717b(a). Commonwealth No. 19–134–LNG (Sept. 11, 2020). filing of comments or a protest with seeks to export this LNG by vessel from 3 U.S. Dep’t of Energy, Extending Natural Gas the proposed Commonwealth LNG Export Authorizations to Non-Free Trade Received on Study; Notice of Response to Facility to be located in Cameron Parish, Agreement Countries Through the Year 2050; Comments, 83 FR 67251 (Dec. 28, 2018). Louisiana, to any country with which Notice of Final Policy Statement and Response to 10 The Addendum and related documents are Comments, 85 FR 52237 (Aug. 25, 2020) available at: http://energy.gov/fe/draft-addendum- the United States has not entered into a [hereinafter Policy Statement]. environmental-review-documents-concerning- free trade agreement (FTA) requiring 4 See 10 CFR 590.204(a). exports-natural-gas-united-states. national treatment for trade in natural 5 See Policy Statement, 85 FR 52247. 11 The 2014 Life Cycle Greenhouse Gas Report is gas, and with which trade is not 6 See id., 85 FR 52247. available at: http://energy.gov/fe/life-cycle- prohibited by U.S. law or policy (non- 7 Id., 85 FR 52247. greenhouse-gas-perspective-exporting-liquefied- 8 See NERA Economic Consulting, natural-gas-united-states. FTA countries) for a 20-year term. In Macroeconomic Outcomes of Market Determined 12 U.S. Dep’t of Energy, Life Cycle Greenhouse Levels of U.S. LNG Exports (June 7, 2018), available Gas Perspective on Exporting Liquefied Natural Gas 1 Commonwealth LNG, LLC, FE Docket No. 19– at: https://www.energy.gov/sites/prod/files/2018/ From the United States: 2019 Update—Response to 134–LNG, Application for Long-Term Authorization 06/f52/Macroeconomic%20LNG%20Export Comments, 85 FR 72 (Jan. 2, 2020). The 2019 to Export Liquefied Natural Gas to Free Trade %20Study%202018.pdf. Update and related documents are available at: Agreement Nations and Non-Free Trade Agreement 9 U.S. Dep’t of Energy, Study on Macroeconomic https://fossil.energy.gov/app/docketindex/docket/ Nations (Oct. 16, 2019). Outcomes of LNG Exports: Response to Comments index/21.

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respect to the Application will not serve Signed in Washington, DC, on September In addition to publishing the full text to make the commenter or protestant a 28, 2020. of this document in the Federal party to the proceeding, although Amy Sweeney, Register, the Commission provides all protests and comments received from Director, Office of Regulation, Analysis, and interested persons an opportunity to persons who are not parties will be Engagement, Office of Fossil Energy. view and/or print the contents of this considered in determining the [FR Doc. 2020–21761 Filed 10–1–20; 8:45 am] document via the internet through the appropriate action to be taken on the BILLING CODE 6450–01–P Commission’s Home Page (http:// Application. All protests, comments, ferc.gov) using the ‘‘eLibrary’’ link. motions to intervene, or notices of Enter the docket number excluding the intervention must meet the DEPARTMENT OF ENERGY last three digits in the docket number requirements specified by the field to access the document. At this regulations in 10 CFR part 590. Federal Energy Regulatory time, the Commission has suspended Filings may be submitted using one of Commission access to the Commission’s Public the following methods: (1) Emailing the Reference Room, due to the filing to [email protected], with FE [Docket No. ER20–2977–000] proclamation declaring a National Docket No. 19–134–LNG in the title Emergency concerning the Novel line; (2) mailing an original and three ORNI 34 LLC; Supplemental Notice Coronavirus Disease (COVID–19), issued paper copies of the filing to the Office That Initial Market-Based Rate Filing by the President on March 13, 2020. For of Regulation, Analysis, and Includes Request for Blanket Section assistance, contact the Federal Energy Engagement at the address listed in 204 Authorization Regulatory Commission at ADDRESSES; or (3) hand delivering an This is a supplemental notice in the [email protected] or call original and three paper copies of the above-referenced proceeding of ORNI 34 toll-free, (886) 208–3676 or TYY, (202) filing to the Office of Regulation, LLC’s application for market-based rate 502–8659. Analysis, and Engagement at the authority, with an accompanying rate address listed in ADDRESSES. All filings Dated: September 28, 2020. tariff, noting that such application must include a reference to FE Docket Nathaniel J. Davis, Sr., includes a request for blanket No. 19–134–LNG. PLEASE NOTE: If Deputy Secretary. authorization, under 18 CFR part 34, of submitting a filing via email, please [FR Doc. 2020–21827 Filed 10–1–20; 8:45 am] future issuances of securities and include all related documents and BILLING CODE 6717–01–P attachments (e.g., exhibits) in the assumptions of liability. original email correspondence. Please Any person desiring to intervene or to do not include any active hyperlinks or protest should file with the Federal DEPARTMENT OF ENERGY password protection in any of the Energy Regulatory Commission, 888 documents or attachments related to the First Street NE, Washington, DC 20426, Federal Energy Regulatory filing. All electronic filings submitted to in accordance with Rules 211 and 214 Commission of the Commission’s Rules of Practice DOE must follow these guidelines to [Docket No. ER20–2979–000] ensure that all documents are filed in a and Procedure (18 CFR 385.211 and timely manner. Any hardcopy filing 385.214). Anyone filing a motion to Catalyst Power & Gas LLC; submitted greater in length than 50 intervene or protest must serve a copy Supplemental Notice That Initial pages must also include, at the time of of that document on the Applicant. Market-Based Rate Filing Includes the filing, a digital copy on disk of the Notice is hereby given that the Request for Blanket Section 204 entire submission. deadline for filing protests with regard Authorization A decisional record on the to the applicant’s request for blanket Application will be developed through authorization, under 18 CFR part 34, of This is a supplemental notice in the responses to this Notice by parties, future issuances of securities and above-referenced proceeding of Catalyst including the parties’ written comments assumptions of liability, is , Power & Gas LLC’s application for and replies thereto. If no party requests 2020. market-based rate authority, with an additional procedures, a final Opinion The Commission encourages accompanying rate tariff, noting that and Order may be issued based on the electronic submission of protests and such application includes a request for official record, including the interventions in lieu of paper, using the blanket authorization, under 18 CFR Application and responses filed by FERC Online links at http:// part 34, of future issuances of securities parties pursuant to this notice, in www.ferc.gov. To facilitate electronic and assumptions of liability. accordance with 10 CFR 590.316. service, persons with internet access Any person desiring to intervene or to The Application is available for who will eFile a document and/or be protest should file with the Federal inspection and copying in the Office of listed as a contact for an intervenor Energy Regulatory Commission, 888 Regulation, Analysis, and Engagement must create and validate an First Street NE, Washington, DC 20426, docket room, Room 3E–042, 1000 eRegistration account using the in accordance with Rules 211 and 214 Independence Avenue SW, Washington, eRegistration link. Select the eFiling of the Commission’s Rules of Practice DC 20585. The docket room is open link to log on and submit the and Procedure (18 CFR 385.211 and between the hours of 8:00 a.m. and 4:30 intervention or protests. 385.214). Anyone filing a motion to p.m., Monday through Friday, except Persons unable to file electronically intervene or protest must serve a copy Federal holidays. The Application and may mail similar pleadings to the of that document on the Applicant. any filed protests, motions to intervene Federal Energy Regulatory Commission, Notice is hereby given that the or notice of interventions, and 888 First Street NE, Washington, DC deadline for filing protests with regard comments will also be available 20426. Hand delivered submissions in to the applicant’s request for blanket electronically by going to the following docketed proceedings should be authorization, under 18 CFR part 34, of DOE/FE Web address: http:// delivered to Health and Human future issuances of securities and www.fe.doe.gov/programs/ Services, 12225 Wilkins Avenue, assumptions of liability, is October 19, gasregulation/index.html. Rockville, Maryland 20852. 2020.

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The Commission encourages Accession Number: 202009235044. Filed Date: 9/24/20. electronic submission of protests and Comments/Protests Due: 5 p.m. ET Accession Number: 20200924–5131. interventions in lieu of paper, using the 10/14/2020. Comments Due: 5 p.m. ET 10/6/20. FERC Online links at http:// Docket Numbers: RP20–1208–000. Docket Numbers: RP20–1215–000. www.ferc.gov. To facilitate electronic Applicants: Iroquois Gas Applicants: Algonquin Gas service, persons with internet access Transmission System, L.P. Transmission, LLC. who will eFile a document and/or be Description: § 4(d) Rate Filing: 092420 Description: Compliance filing AGT listed as a contact for an intervenor Negotiated Rates—Castleton 2020 OFO Penalty Disbursement Report. must create and validate an Commodities Merchant Trading L.P. R– Filed Date: 9/24/20. eRegistration account using the 4010–24 to be effective 11/1/2020. Accession Number: 20200924–5138. eRegistration link. Select the eFiling Filed Date: 9/24/20. Comments Due: 5 p.m. ET 10/6/20. link to log on and submit the Accession Number: 20200924–5023. Docket Numbers: RP20–1216–000. intervention or protests. Comments Due: 5 p.m. ET 10/6/20. Applicants: Enable Mississippi River Persons unable to file electronically Docket Numbers: RP20–1209–000. Transmission, LLC. may mail similar pleadings to the Applicants: Iroquois Gas Description: Annual Penalty Revenue Federal Energy Regulatory Commission, Transmission System, L.P. Credit Report of Enable Mississippi 888 First Street NE, Washington, DC Description: § 4(d) Rate Filing: 092420 River Transmission, LLC under RP20– 20426. Hand delivered submissions in Negotiated Rates—Citadel Energy 1216. docketed proceedings should be Marketing LLC R–7705–02 to be Filed Date: 9/24/20. delivered to Health and Human effective 11/1/2020. Accession Number: 20200924–5146. Services, 12225 Wilkins Avenue, Filed Date: 9/24/20. Comments Due: 5 p.m. ET 10/6/20. Rockville, Maryland 20852. Accession Number: 20200924–5024. In addition to publishing the full text Docket Numbers: RP20–1217–000. Comments Due: 5 p.m. ET 10/6/20. Applicants: Transcontinental Gas of this document in the Federal Docket Numbers: RP20–1210–000. Register, the Commission provides all Pipe Line Company, LLC. Applicants: Iroquois Gas Description: § 4(d) Rate Filing: Rate interested persons an opportunity to Transmission System, L.P. view and/or print the contents of this Schedule SS–2 Tracker Filing eff Description: § 4(d) Rate Filing: 092420 , 2020 and October 1, 2020 document via the internet through the Negotiated Rates—Citadel Energy Commission’s Home Page (http:// to be effective 9/1/2020. Marketing LLC R–7705–03 to be Filed Date: 9/25/20. ferc.gov) using the ‘‘eLibrary’’ link. effective 11/1/2020. Enter the docket number excluding the Accession Number: 20200925–5006. Filed Date: 9/24/20. Comments Due: 5 p.m. ET 10/7/20. last three digits in the docket number Accession Number: 20200924–5033. field to access the document. At this Comments Due: 5 p.m. ET 10/6/20. Docket Numbers: RP20–1218–000. time, the Commission has suspended Applicants: ANR Pipeline Company. Docket Numbers: RP20–1211–000. Description: § 4(d) Rate Filing: SENA access to the Commission’s Public Applicants: Iroquois Gas Reference Room, due to the Negotiated Rate Agreement to be Transmission System, L.P. effective 11/1/2017. proclamation declaring a National Description: § 4(d) Rate Filing: 092420 Filed Date: 9/25/20. Emergency concerning the Novel Negotiated Rates—DTE Energy Trading, Accession Number: 20200925–5011. Coronavirus Disease (COVID–19), issued Inc. R–1830–14 to be effective 11/1/ Comments Due: 5 p.m. ET 10/7/20. by the President on March 13, 2020. For 2020. assistance, contact the Federal Energy Filed Date: 9/24/20. Docket Numbers: RP20–1219–000. Regulatory Commission at Accession Number: 20200924–5038. Applicants: Gulf South Pipeline [email protected] or call Comments Due: 5 p.m. ET 10/6/20. Company, LLC. toll-free, (886) 208–3676 or TYY, (202) Docket Numbers: RP20–1212–000. Description: § 4(d) Rate Filing: Non- 502–8659. Applicants: Iroquois Gas conforming Agmt Filing (FPL 52990) to Dated: September 28, 2020. Transmission System, L.P. be effective 11/1/2020. Nathaniel J. Davis, Sr., Description: § 4(d) Rate Filing: 092420 Filed Date: 9/25/20. Accession Number: 20200925–5018. Deputy Secretary. Negotiated Rates—Mercuria Energy Comments Due: 5 p.m. ET 10/7/20. [FR Doc. 2020–21829 Filed 10–1–20; 8:45 am] America, LLC R–7540–02 to be effective Docket Numbers: RP20–1221–000. BILLING CODE 6717–01–P 11/1/2020. Filed Date: 9/24/20. Applicants: Trunkline Gas Company, Accession Number: 20200924–5041. LLC. DEPARTMENT OF ENERGY Comments Due: 5 p.m. ET 10/6/20. Description: Compliance filing Docket Numbers: RP20–1213–000. Annual Report of Flow Through filed 9– Federal Energy Regulatory Applicants: Southwest Gas 25–20. Commission Transmission Company. Filed Date: 9/25/20. Description: § 4(d) Rate Filing: Cover Accession Number: 20200925–5052. Combined Notice of Filings Page Contact Information- Address Comments Due: 5 p.m. ET 10/7/20. Take notice that the Commission has Change to be effective 9/28/2020. Docket Numbers: RP20–1224–000. received the following Natural Gas Filed Date: 9/24/20. Applicants: Texas Eastern Pipeline Rate and Refund Report filings: Accession Number: 20200924–5052. Transmission, LP. Docket Number: PR20–73–000. Comments Due: 5 p.m. ET 10/6/20. Description: § 4(d) Rate Filing: Applicants: DTE Gas Company. Docket Numbers: RP20–1214–000. Negotiated Rates—Chevron 911109 Description: Tariff filing per Applicants: Enable Mississippi River Releases eff 10–01–2020 to be effective 284.123(b),(e)/: DTE Gas Operating Transmission, LLC. 10/1/2020. Statement Update to be effective 10/1/ Description: § 4(d) Rate Filing: 2020 Filed Date: 9/25/20. 2020. MRT Annual Fuel Filing to be effective Accession Number: 20200925–5084. Filed Date: 9/23/2020. 11/1/2020. Comments Due: 5 p.m. ET 10/7/20.

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The filings are accessible in the California Ridge Wind Energy LLC, Accession Number: 20200928–5019. Commission’s eLibrary system (https:// Catalyst Old River Hydroelectric Comments Due: 5 p.m. ET 10/19/20. elibrary.ferc.gov/idmws/search/ Limited. Docket Numbers: ER20–3006–000. fercgensearch.asp) by querying the Description: Notice of Non-Material Applicants: Grand Ridge Energy V docket number. Change in Status of Brookfield Energy LLC. Any person desiring to intervene or Marketing Inc., et. al. Description: Tariff Cancellation: protest in any of the above proceedings Filed Date: 9/25/20. Administrative Cancellation of eTariff must file in accordance with Rules 211 Accession Number: 20200925–5199. Record to be effective 11/28/2020. and 214 of the Commission’s Comments Due: 5 p.m. ET 10/16/20. Filed Date: 9/28/20. Regulations (18 CFR 385.211 and Docket Numbers: ER20–1537–001; Accession Number: 20200928–5025. 385.214) on or before 5:00 p.m. Eastern ER20–1538–001. Comments Due: 5 p.m. ET 10/19/20. time on the specified comment date. Applicants: RE Mustang Two Docket Numbers: ER20–3007–000. Protests may be considered, but Whirlaway LLC, RE Mustang Two Applicants: PJM Interconnection, intervention is necessary to become a Barbaro LLC. L.L.C. party to the proceeding. Description: Notice of Non-Material Description: § 205(d) Rate Filing: eFiling is encouraged. More detailed Change in Status of RE Mustang Two Original ISA, Service Agreement No. information relating to filing Barbaro LLC, et al. 5763; Queue No. AD1–033 to be requirements, interventions, protests, Filed Date: 9/25/20. effective 9/1/2020. service, and qualifying facilities filings Accession Number: 20200925–5179. Filed Date: 9/28/20. can be found at: http://www.ferc.gov/ Comments Due: 5 p.m. ET 10/16/20. Accession Number: 20200928–5031. docs-filing/efiling/filing-req.pdf. For Docket Numbers: ER20–2771–000. Comments Due: 5 p.m. ET 10/19/20. other information, call (866) 208–3676 Applicants: Guzman Western Slope Docket Numbers: ER20–3008–000. (toll free). For TTY, call (202) 502–8659. LLC. Applicants: Southwest Power Pool, Dated: September 28, 2020. Description: Supplement to August Inc. Nathaniel J. Davis, Sr., 28, 2020 Guzman Western Slope LLC Description: § 205(d) Rate Filing: Deputy Secretary. tariff filing. Revisions to Modify Schedule 1–A and [FR Doc. 2020–21831 Filed 10–1–20; 8:45 am] Filed Date: 9/25/20. Formula Rate Template to be effective 1/ BILLING CODE 6717–01–P Accession Number: 20200925–5172. 1/2021. Comments Due: 5 p.m. ET 10/5/20. Filed Date: 9/28/20. Docket Numbers: ER20–3000–000. Accession Number: 20200928–5051. DEPARTMENT OF ENERGY Applicants: New York Independent Comments Due: 5 p.m. ET 10/19/20. System Operator, Inc., Niagara Mohawk Docket Numbers: ER20–3009–000. Federal Energy Regulatory Power Corporation. Applicants: GridLiance Heartland Commission Description: § 205(d) Rate Filing: Joint LLC. NYISO and NMPC 205 filing re: SA Description: Compliance filing: GLH Combined Notice of Filings #1 2556 Darby Solar to be effective 9/17/ Order No. 864 Compliance Filing to be Take notice that the Commission 2020. effective 11/1/2020. received the following electric rate Filed Date: 9/28/20. Filed Date: 9/28/20. filings: Accession Number: 20200928–5005. Accession Number: 20200928–5074. Docket Numbers: ER10–1818–022; Comments Due: 5 p.m. ET 10/19/20. Comments Due: 5 p.m. ET 10/19/20. ER10–1817–021. Docket Numbers: ER20–3001–000. Docket Numbers: ER20–3010–000. Applicants: Southwestern Public Applicants: New York Independent Applicants: AEP Texas Inc. Service Company, Public Service System Operator, Inc., Niagara Mohawk Description: § 205(d) Rate Filing: Company of Colorado. Power Corporation. AEPTX-Taylor EC-Golden Spread EC Description: Notice of Change in Description: § 205(d) Rate Filing: 6th A&R Interconnection Agreement to Status of Public Service Company of SGIA (SA 2557) among NYISO, NMPC be effective 9/21/2020. Colorado, et al. and Branscomb Solar, LLC to be Filed Date: 9/28/20. Filed Date: 9/25/20. effective 9/17/2020. Accession Number: 20200928–5077. Accession Number: 20200925–5168. Filed Date: 9/28/20. Comments Due: 5 p.m. ET 10/19/20. Comments Due: 5 p.m. ET 10/16/20. Accession Number: 20200928–5006. Docket Numbers: ER20–3011–000. Docket Numbers: ER19–106–003. Comments Due: 5 p.m. ET 10/19/20. Applicants: PJM Interconnection, Applicants: Birdsboro Power LLC. Docket Numbers: ER20–3004–000. L.L.C. Description: Notice of Non-Material Applicants: Hardin Solar Holdings Description: § 205(d) Rate Filing: Change in Status of Birdsboro Power LLC. Original ISA, Service Agreement No. LLC. Description: § 205(d) Rate Filing: 5757; Queue No. AC1–161 to be Filed Date: 9/28/20. Revised Market-Based Rate Tariff Filing effective 8/28/2020. Accession Number: 20200928–5075. to be effective 11/28/2020. Filed Date: 9/28/20. Comments Due: 5 p.m. ET 10/19/20. Filed Date: 9/28/20. Accession Number: 20200928–5094. Docket Numbers: ER19–1074–006; Accession Number: 20200928–5018. Comments Due: 5 p.m. ET 10/19/20. ER11–3942–024; ER19–1075–006; Comments Due: 5 p.m. ET 10/19/20. Docket Numbers: ER20–3012–000. ER19–529–006; ER12–645–023; ER20– Docket Numbers: ER20–3005–000. Applicants: GridLiance Heartland 1806–001. Applicants: Grand Ridge Energy IV LLC. Applicants: Brookfield Energy LLC. Description: Compliance filing: ER19– Marketing Inc., Brookfield Energy Description: Tariff Cancellation: 2092 Order 845 Compliance Filing to be Marketing LP, Brookfield Renewable Administrative Cancellation of eTariff effective 11/1/2020. Energy Marketing US, Brookfield Record to be effective 11/28/2020. Filed Date: 9/28/20. Renewable Trading and Marketing, Filed Date: 9/28/20. Accession Number: 20200928–5109.

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Comments Due: 5 p.m. ET 10/19/20. www.ferc.gov using the ‘‘eLibrary’’ link. project should submit an original and The filings are accessible in the Enter the docket number excluding the two copies of their comments to the Commission’s eLibrary system (https:// last three digits in the docket number Secretary of the Commission. elibrary.ferc.gov/idmws/search/ field to access the document. For Environmental commenter’s will be fercgensearch.asp) by querying the assistance, contact FERC at placed on the Commission’s docket number. [email protected] or call environmental mailing list and will be Any person desiring to intervene or toll-free, (866) 208–3676 or TYY, (202) notified of any meetings associated with protest in any of the above proceedings 502–8659. At this time, the Commission the Commission’s environmental review must file in accordance with Rules 211 has suspended access to the process. Environmental commenter’s and 214 of the Commission’s Commission’s Public Reference Room, will not be required to serve copies of Regulations (18 CFR 385.211 and due to the proclamation declaring a filed documents on all other parties. 385.214) on or before 5:00 p.m. Eastern National Emergency concerning the However, the non-party commenters, time on the specified comment date. Novel Coronavirus Disease (COVID–19), will not receive copies of all documents Protests may be considered, but issued by the President on March 13, filed by other parties or issued by the intervention is necessary to become a 2020. Commission and will not have the right party to the proceeding. Any questions concerning this to seek court review of the eFiling is encouraged. More detailed application should be directed to Sorana Commission’s final order. information relating to filing Linder, Director, Modernization & The Commission strongly encourages requirements, interventions, protests, Certificates, Columbia Gas electronic filings of comments, protests service, and qualifying facilities filings Transmission, LLC, 700 Louisiana and interventions in lieu of paper using can be found at: http://www.ferc.gov/ Street, Suite 700, Houston, Texas the ‘‘eFile’’ link at http://www.ferc.gov. 77002–2700, at (832) 320–5209 or Persons unable to file electronically may docs-filing/efiling/filing-req.pdf. For _ other information, call (866) 208–3676 sorana [email protected]. mail similar pleadings to the Federal Any person or the Commission’s staff (toll free). For TTY, call (202) 502–8659. Energy Regulatory Commission, 888 may, within 60 days after issuance of Dated: September 28, 2020. First Street NE, Washington, DC 20426. the instant notice by the Commission, Submissions sent via any other carrier Nathaniel J. Davis, Sr., file pursuant to Rule 214 of the must be addressed to: Kimberly D. Bose, Deputy Secretary. Commission’s Procedural Rules (18 CFR Secretary, Federal Energy Regulatory [FR Doc. 2020–21830 Filed 10–1–20; 8:45 am] 385.214) a motion to intervene or notice Commission, 12225 Wilkins Avenue, BILLING CODE 6717–01–P of intervention and pursuant to section Rockville, Maryland 20852. 157.205 of the regulations under the NGA (18 CFR 157.205), a protest to the Dated: September 28, 2020. DEPARTMENT OF ENERGY request. If no protest is filed within the Kimberly D. Bose, time allowed therefore, the proposed Secretary. Federal Energy Regulatory activity shall be deemed to be [FR Doc. 2020–21845 Filed 10–1–20; 8:45 am] Commission authorized effective the day after the BILLING CODE 6717–01–P [Docket No. CP20–525–000] time allowed for filing a protest. If a protest is filed and not withdrawn Columbia Gas Transmission, LLC; within 30 days after the allowed time DEPARTMENT OF ENERGY Notice of Request Under Blanket for filing a protest, the instant request Authorization shall be treated as an application for Federal Energy Regulatory authorization pursuant to section 7 of Commission Take notice that on , the NGA. [Docket No. ER20–2978–000] 2020, Columbia Gas Transmission, LLC, Pursuant to section 157.9 of the 700 Louisiana Street, Houston, Texas Commission’s rules, 18 CFR 157.9, Catalyst Power REPCo LLC; 77002–2700, filed in Docket No. CP20– within 90 days of this Notice the Supplemental Notice That Initial 525–000 a prior notice request pursuant Commission staff will either: Complete Market-Based Rate Filing Includes to section 157.205 and 157.213 of the its environmental assessment (EA) and Request for Blanket Section 204 Commission’s regulations under the place it into the Commission’s public Authorization Natural Gas Act, for authorization to record (eLibrary) for this proceeding; or construct and operate one new issue a Notice of Schedule for This is a supplemental notice in the injection/withdrawal storage well and Environmental Review. If a Notice of above-referenced proceeding of Catalyst related pipelines and appurtenances in Schedule for Environmental Review is Power REPCo LLC’s application for Columbia’s Lucas Storage Field in issued, it will indicate, among other market-based rate authority, with an Richland County, Ohio (Lucas 12617 milestones, the anticipated date for the accompanying rate tariff, noting that New Well Project). Columbia states that Commission staff’s issuance of the EA such application includes a request for the proposed well will have no impact for this proposal. The filing of the EA blanket authorization, under 18 CFR on how the Lucas Storage Field is in the Commission’s public record for part 34, of future issuances of securities operated. There will be no change in the this proceeding or the issuance of a and assumptions of liability. certificated physical parameters of the Notice of Schedule for Environmental Any person desiring to intervene or to field, including existing boundary, total Review will serve to notify federal and protest should file with the Federal inventory, reservoir pressure, reservoir state agencies of the timing for the Energy Regulatory Commission, 888 and buffer boundaries, or the completion of all necessary reviews, and First Street NE, Washington, DC 20426, certificated storage capacity, all as more the subsequent need to complete all in accordance with Rules 211 and 214 fully set forth in the application which federal authorizations within 90 days of of the Commission’s Rules of Practice is on file with the Commission and open the date of issuance of the Commission and Procedure (18 CFR 385.211 and to public inspection. staff’s EA. 385.214). Anyone filing a motion to The filing is available for review on Persons who wish to comment only intervene or protest must serve a copy the Commission’s website web at http:// on the environmental review of this of that document on the Applicant.

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Notice is hereby given that the ENVIRONMENTAL PROTECTION ENVIRONMENTAL PROTECTION deadline for filing protests with regard AGENCY AGENCY to the applicant’s request for blanket [CERCLA–10–2020–0142; FRL–10014–61– authorization, under 18 CFR part 34, of [ER–FRL–9053–2] Region 10] future issuances of securities and assumptions of liability, is October 19, Environmental Impact Statements; Proposed CERCLA Administrative 2020. Notice of Availability Settlement; Spokane Recycling The Commission encourages Company Responsible Agency: Office of Federal electronic submission of protests and AGENCY: Environmental Protection interventions in lieu of paper, using the Activities, General Information 202– 564–5632 or https://www.epa.gov/nepa. Agency (EPA). FERC Online links at http:// ACTION: Notice; request for public www.ferc.gov. To facilitate electronic Weekly receipt of Environmental Impact comment. service, persons with internet access Statements (EIS) who will eFile a document and/or be Filed September 21, 2020 10 a.m. EST SUMMARY: In accordance with the listed as a contact for an intervenor Through September 28, 2020 10 a.m. Comprehensive Environmental Response, Compensation, and Liability must create and validate an EST eRegistration account using the Act, as amended (‘‘CERCLA’’), notice is eRegistration link. Select the eFiling Pursuant to 40 CFR 1506.9. hereby given of a proposed link to log on and submit the Notice administrative settlement for recovery of intervention or protests. past and projected future response costs Section 309(a) of the Clean Air Act concerning the Former Kaiser Smelter Persons unable to file electronically requires that EPA make public its Site, Mead, Washington, with the may mail similar pleadings to the comments on EISs issued by other following settling party: Spokane Federal Energy Regulatory Commission, Federal agencies. EPA’s comment letters Recycling Company. The settlement 888 First Street NE, Washington, DC on EISs are available at: https:// requires the settling party to pay 50% of 20426. Hand delivered submissions in cdxnodengn.epa.gov/cdx-enepa-public/ the net sales proceeds of the sale of the docketed proceedings should be action/eis/search. Property or $325,000, whichever is less delivered to Health and Human to EPA to be used to conduct or finance Services, 12225 Wilkins Avenue, EIS No. 20200195, Draft, USFS, NM, response actions undertaken at the Site Rockville, Maryland 20852. Integrated Non-Native Invasive Plant or to be transferred by EPA to the In addition to publishing the full text Management, Comment Period Ends: Hazardous Substance Superfund. The of this document in the Federal 12/01/2020, Contact: Peggy settlement includes a covenant not to Register, the Commission provides all Luensmann 575–434–7200. sue the settling party. For thirty (30) interested persons an opportunity to EIS No. 20200196, Final, FTA, CA, Final days following the date of publication of view and/or print the contents of this Environmental Impact Statement/ this document, the Agency will receive document via the internet through the Final Environmental Impact Report written comments relating to the Commission’s Home Page (http:// (Vol 1) for the East San Fernando settlement. The Agency will consider all comments and may modify or withdraw ferc.gov) using the ‘‘eLibrary’’ link. Valley Transit Corridor Project, its consent to the settlement if Enter the docket number excluding the Review Period Ends: 11/02/2020, comments received disclose facts or last three digits in the docket number Contact: Ms. Charlene Lee Lorenzo considerations which indicate that the field to access the document. At this 213–202–3952. settlement is inappropriate, improper, time, the Commission has suspended Amended Notice: or inadequate. The Agency’s response to access to the Commission’s Public EIS No. 20200165, Draft, USFS, ID, any comments received will be available Reference Room, due to the Stibnite Gold Project, Comment electronically for public inspection at proclamation declaring a National Period Ends: 10/28/2020, Contact: https://www.regulations.gov. Emergency concerning the Novel Brian Harris 208–634–6945. Revision DATES: Comments must be submitted on Coronavirus Disease (COVID–19), issued to FR Notice Published 8/21/2020; or before November 2, 2020. by the President on March 13, 2020. For Extending the Comment Period from ADDRESSES: The proposed settlement is assistance, contact the Federal Energy 10/13/2020 to 10/28/2020. available electronically for public Regulatory Commission at EIS No. 20200176, Final, USACE, FL, inspection at https://semspub.epa.gov/ [email protected] or call src/collections/10/AR/WAN001020091. Lake Okeechobee Watershed toll-free, (886) 208–3676 or TYY, (202) Submit your comments, identified by Restoration Project, Review Period 502–8659. EPA Docket No. CERCLA–10–2020– Ends: 10/28/2020, Contact: Dr. Dated: September 28, 2020. 0142, by one of the following methods: Gretchen Ehlinger 904–232–1682. • https://www.regulations.gov. Nathaniel J. Davis, Sr., Revision to FR Notice Published 08/ Deputy Secretary. Follow on-line instructions for 28/2020; Extending the Comment submitting comments. Once submitted, [FR Doc. 2020–21828 Filed 10–1–20; 8:45 am] Period from 09/28/2020 to 10/28/ comments cannot be edited or removed BILLING CODE 6717–01–P 2020. from Regulations.gov. EPA may publish Dated: September 28, 2020. any comment received to its public Cindy S. Barger, docket. Do not submit electronically any information you consider to be Director, NEPA Compliance Division, Office of Federal Activities. Confidential Business Information (‘‘CBI’’) or other information whose [FR Doc. 2020–21796 Filed 10–1–20; 8:45 am] disclosure is restricted by statute. BILLING CODE 6560–50–P Multimedia submissions (audio, video,

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etc.) must be accompanied by a written in the index, some information is not Dated: September 28, 2020. comment. The written comment is publicly available, e.g., CBI or other Calvin Terada, considered the official comment and information whose disclosure is Division Director, Superfund and Emergency should include discussion of all points restricted by statute. Certain other Management Division, Region 10. you wish to make. EPA will generally material, such as copyrighted material, [FR Doc. 2020–21802 Filed 10–1–20; 8:45 am] not consider comments or comment will be publicly available only in the BILLING CODE 6560–50–P contents located outside of the primary hard copy. Publicly available docket submission (i.e. on the web, cloud, or materials are available electronically in other file sharing system). For https://semspub.epa.gov/src/ ENVIRONMENTAL PROTECTION additional submission methods, the full collections/10/AR/WAN001020091. AGENCY EPA public comment policy, information about CBI or multimedia EPA is temporarily suspending its [EPA–HQ–OLEM–2019–0540 FRL–10015– 15–OLEM] submissions, and general guidance on Docket Center and Regional Records making effective comments, please visit Centers for public visitors to reduce the Comprehensive Environmental https://www2.epa.gov/dockets/ risk of transmitting COVID–19. In Response, Compensation and Liability commenting-epa-dockets. addition, many site information • Act (CERCLA) or Superfund, Section Email: Brooks Stanfield, Federal repositories are closed, and information 128(a); Notice of Grant Funding On-SceneCoordinator, at in these repositories, including the Guidance for State and Tribal [email protected]. deletion docket, has not been updated Response Programs for Fiscal Year • Written comments submitted by with hardcopy or electronic media. For 2021 mail are temporarily suspended, and no further information and updates on EPA hand deliveries will be accepted. We Docket Center services, please visit us AGENCY: Environmental Protection encourage the public to submit online at https://www.epa.gov/dockets. Agency (EPA). comments via https:// ACTION: Notice. www.regulations.gov. EPA continues to carefully and Instructions: Direct your comments to continuously monitor information from SUMMARY: The Comprehensive EPA Docket No. CERCLA–10–2020– the Centers for Disease Control and Environmental Response, 0142. EPA’s policy is that all comments Prevention (CDC), local area health Compensation, and Liability Act received will be included in the public departments, and our Federal partners (CERCLA), as amended, authorizes a docket without change and may be so that we can respond rapidly as noncompetitive $50 million grant made available online at https:// conditions change regarding COVID. program to establish or enhance state www.regulations.gov, including any and tribal response programs. These personal information provided, unless FOR FURTHER INFORMATION CONTACT: response programs generally address the the comment includes information Brooks Stanfield, Federal On-Scene assessment, cleanup, and claimed to be CBI or other information Coordinator, U.S. Environmental redevelopment of brownfields sites and whose disclosure is restricted by statute. Protection Agency, Region 10, 1200 other sites with actual or perceived Do not submit information that you Sixth Avenue, Suite 155, 13–J07, contamination. For Fiscal Year (FY) consider to be CBI or otherwise Seattle, WA 98101, (206) 553–4432, 2021, the Environmental Protection protected through https:// email: [email protected]; and/or Agency (EPA) will consider grant www.regulations.gov or email. The Kristin Leefers, Assistant Regional requests up to a maximum of $1.0 https://www.regulations.gov website is Counsel, U.S. Environmental Protection million per state or tribe. This document an ‘‘anonymous access’’ system, which Agency, Region 10, 1200 Sixth Avenue, announces the availability of guidance means EPA will not know your identity Suite 155, M/S: 11–C07, Seattle, WA that will assist states and tribes in the or contact information unless you 98101, (206) 553–1532, email: development and submission of funding provide it in the body of your comment. [email protected]. requests and these funds. If you send an email comment directly DATES: The FY 2021 section 128(a) grant SUPPLEMENTARY INFORMATION: to EPA without going through https:// This funding guidance is applicable as of www.regulations.gov, your email settlement is entered into pursuant to October 2, 2020, and EPA Regional address will be automatically captured the authority under section 122(h)(1) of offices will accept requests for section and included as part of the comment CERCLA, 42 U.S.C. 9622(h)(1), to settle 128(a) noncompetitive grant awards that is placed in the public docket and claims under section 107 of CERCLA, 42 through , 2020. made available on the internet. If you U.S.C. 9607, with the prior written FOR FURTHER INFORMATION CONTACT: submit an electronic comment, EPA approval of the Attorney General. The Melissa Papasavvas, Office of recommends that you include your settlement agreement requires the Brownfields and Land Revitalization, name and other contact information in settling party to pay 50% of the net sales Environmental Protection Agency, 1200 the body of your comment and with any proceeds of the sale of the Property or Pennsylvania Ave. NW, Washington, DC disk or CD–ROM you submit. If EPA $325,000, whichever is less to EPA to be 20460–0001; telephone number (202) cannot read your comment due to used to conduct or finance response 566–0435. technical difficulties and cannot contact actions undertaken at the Site or to be SUPPLEMENTARY INFORMATION: you for clarification, EPA may not be transferred by EPA to the Hazardous able to consider your comment. Substance Superfund. The settlement I. General Information Electronic files should avoid the use of also includes a covenant not to sue the special characters, any form of A. Does this action apply to me? encryption, and be free of any defects or settling party pursuant to sections 106 You may be affected by this action if viruses. and 107(a) of CERCLA, 42 U.S.C. 9606 you administer a State or Tribal Docket: All documents in the docket and 9607(a). response program that oversees are listed in the https:// Authority: 42 U.S.C. 9601–9657. assessment and cleanup activities at semspub.epa.gov/src/collections/10/AR/ brownfield sites across the country. WAN001020091 index. Although listed Note: the CERCLA definition of ‘‘State’’

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includes US Territories and the District redevelopment. In enacting the Small included in state and tribal Performance of Columbia (CERCLA section 101(27)). Business Liability Relief and Partnership Grants under 40 CFR part Brownfields Revitalization Act (Pub. L. 35 Subparts A and B, with the following B. How can I get copies of the grant 107–118, 115 Stat. 2356), which added exceptions: Funds used to capitalize a funding guidance and other related section 128 to CERCLA, Congress revolving loan fund for brownfield information? recognized the value of state and tribal remediation under CERCLA section 1. Docket. The docket for this action, response programs in cleaning up and 104(k)(3); funds received for a Small identified by docket identification (ID) redeveloping brownfield sites. Section Technical Assistance Grant under number EPA–HQ–OLEM–2019–0540, is 128(a) strengthens EPA’s partnerships CERLCA section 128(a)(I)(B)(ii)(III); and available online at https:// with states and tribes and recognizes funds used to purchase environmental www.regulations.gov. their response programs’ critical role in insurance or developing a risk sharing 2. EPA website. To access the FY21 overseeing cleanups. pool, an indemnity pool, or insurance section 128(a) grant funding guidance Section 128(a) response program mechanism to provide financing for on EPA’s website, please go to https:// grants are funded with categorical State response actions under a State or Tribal www.epa.gov/brownfields/types- and Tribal Assistance Grant (STAG) response program. brownfields-grant-funding. appropriations. Categorical grants are 3. Application period. Requests for issued by Congress to fund state and funding should be sent to the II. Authority local governments for narrowly defined appropriate Regional EPA contact and CERCLA Section 128(a) (42 U.S.C. purposes. This funding is intended for will be accepted from October 2, 2020 9628(a)) authorizes a noncompetitive those states and tribes that have the through December 11, 2020. Requests $50 million grant program to ‘‘establish required management and or enhance’’ state and tribal response administrative capacity within their EPA Regional offices receive after programs. CERCLA section government to administer a federal December 11, 2020 will not be 128(a)(1)(B)(ii)(III) authorizes a grant. The primary goal of this funding considered for FY 2021 funding. States noncompetitive $1.5 million grant is to ensure that state and tribal or tribes that do not submit the request program to assist small communities, response programs include, or are taking in the appropriate manner may forfeit Indian tribes, rural areas, or reasonable steps to include, certain their ability to receive funds. First time disadvantaged areas to carry out elements of an environmental response requestors are strongly encouraged to activities outlined in CERCLA section program and that the program contact their respective Regional EPA 104(k)(7) (42 U.S.C. 9604(k)(7)) (i.e., establishes and maintains a public Brownfields contacts, identified in providing training, research, and record of sites addressed. Table 1, prior to submitting their technical assistance to individuals and Section 128(a) cooperative agreements funding request. EPA will consider organizations, as appropriate, to are awarded and administered by the funding requests up to a maximum of facilitate the inventory of brownfields EPA regional offices. Generally, these $1.0 million per state or tribe for FY sites, site assessments, remediation of response programs address the 2021. brownfield sites, community assessment, cleanup, and Requests submitted by the December involvement, or site preparation). redevelopment of brownfields sites and 11, 2020 request deadline are other sites with actual or perceived preliminary; final cooperative III. Background contamination. Subject to the agreement work plans and budgets will 1. General. State and tribal response availability of funds, EPA regional be negotiated with the EPA regional programs oversee assessment and personnel will provide technical offices once final funding allocation cleanup activities at brownfield sites assistance to states and tribes as they determinations are made. As in previous across the country. The depth and apply for and carry out section 128(a) years, EPA will place special emphasis breadth of these programs vary. Some cooperative agreements. on reviewing a cooperative agreement focus on CERCLA-related activities, 2. Catalogue of Federal Domestic recipient’s use of prior section 128(a) while others are multi-faceted, Assistance (CFDA) and EPA Funding funding in making allocation decisions, addressing sites regulated by both Opportunity Number (FON). The CFDA and unexpended balances are subject to CERCLA and the Resource Conservation entry for the section 128(a) State and 40 CFR 35.118 and 40 CFR 35.518 to the and Recovery Act (42 U.S.C. 6901 et Tribal Response Program cooperative extent consistent with this guidance. seq.). Many states also offer agreements is 66.817. The FON for FY EPA will also prioritize funding for accompanying financial incentive 2021 section 128(a) funds is EPA–CEP– recipients establishing their response programs to spur cleanup and 02. This grant program is eligible to be programs.

TABLE 1—EPA REGIONAL BROWNFIELDS CONTACTS FOR STATE AND TRIBAL RESPONSE PROGRAMS

Region State Tribal

1. CT, ME, MA, NH, RI, VT ...... AmyJean McKeown, 5 Post Office Square, Suite AmyJean McKeown, 5 Post Office Square, Suite 100 (OSRR07–2) Boston, MA 02109–3912, 100 (OSRR07–2) Boston, MA 02109–3912, Phone (617) 918–1248 Fax (617) 918–1294. Phone (617) 918–1248 Fax (617) 918–1294. 2. NJ, NY, PR, VI ...... John Struble, 290 Broadway, 25th Floor, New John Struble, 290 Broadway, 25th Floor, New York, NY 10007–1866, Phone (212) 637–4291 York, NY 10007–1866, Phone (212) 637–4291 Fax (212) 637–3083. Fax (212) 637–3083. 3. DE, DC, MD, PA, VA, WV ...... Mike Taurino, 1650 Arch Street (3HS51), Phila- Mike Taurino, 1650 Arch Street (3HS51), Phila- delphia, PA 19103, Phone (215) 814–3371 delphia, PA 19103, Phone (215) 814–3371 Fax (215) 814–3274. Fax (215) 814–3274. 4. AL, FL, GA, KY, MS, NC, SC, TN ...... Cindy Nolan, 61 Forsyth Street, S.W, 10TH FL Cindy Nolan, 61 Forsyth Street, S.W, 10TH FL (9T25) Atlanta, GA 30303–8960, Phone (404) (9T25) Atlanta, GA 30303–8909, Phone (404) 562–8425 Fax (404) 562–8788. 562–8425 Fax (404) 562–8788.

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TABLE 1—EPA REGIONAL BROWNFIELDS CONTACTS FOR STATE AND TRIBAL RESPONSE PROGRAMS—Continued

Region State Tribal

5. IL, IN, MI, MN, OH, WI ...... Keary Cragan, 77 West Jackson Boulevard (SB– Rosita Clarke, 77 West Jackson Boulevard (SB– 5J) Chicago, IL 60604–3507, Phone (312) 5J) Chicago, IL 60604–3507, Phone (312) 353–5669 Fax (312) 692–2161. 886–7251 Fax (312) 697–2075. 6. AR, LA, NM, OK, TX ...... Ana Esquivel, 1201 Elm Street, Suite 500, Dal- Elizabeth Reyes, 1201 Elm Street, Suite 500, las, Texas 75270–2102, Phone (214) 665– Dallas, Texas 75270–2102, Phone (214) 665– 3163 Fax (214) 665–6660. 2194 Fax (214) 665–6660. 7. IA, KS, MO, NE ...... Susan Klein, 11201 Renner Boulevard (LCRD/ Jennifer Morris, 11201 Renner Boulevard BSPR)Lenexa KS 66219, Phone (913) 551– ((LCRD/BSPR) Lenexa KS 66219, Phone 7786. (913) 551–7341. 8. CO, MT, ND, SD, UT, WY ...... Christina Wilson, 1595 Wynkoop Street (8LCR– Melisa Devincenzi, 1595 Wynkoop Street BR) Denver, CO 80202–1129, Phone (303) (8LCR–BR) Denver, CO 80202–1129, Phone 312–6706 Fax (303) 312–6065. (303) 312–6377 Fax (303) 312–6962. 9. AZ, CA, HI, NV, AS, GU, MP ...... Jose Garcia, Jr., 600 Wilshire Blvd, Suite 1460, Jose Garcia, Jr., 600 Wilshire Blvd, Suite 1460, Los Angeles, CA 90017, Phone (213) 244– Los Angeles, CA 90017, Phone (213) 244– 1811 Fax (213) 244–1850. 1811 Fax (213) 244–1850. 10. AK, ID, OR, WA ...... Madison Sanders-Curry, 1200 Sixth Ave, Suite Madison Sanders-Curry, 1200 Sixth Ave, Suite 155 (mail code 15–H04), Seattle, WA 98101, 155 (mail code 15–H04), Seattle, WA 98101, Phone (206 553–1889 Fax 206 553–8581. Phone (206) 553–1889 Fax (206) 553–8581.

Authority: 42 U.S.C. 9628(a). FEDERAL COMMUNICATIONS Wednesday, , 2020, which Dated: , 2020. COMMISSION is scheduled to commence at 10:30 a.m. David Lloyd, [FRS 17104] Due to the current COVID–19 pandemic and related agency telework and Director, Office of Brownfields and Land Revitalization. Open Commission Meeting, headquarters access policies, this meeting will be in a wholly electronic [FR Doc. 2020–21255 Filed 10–1–20; 8:45 am] Wednesday September 30, 2020 format and will be open to the public on BILLING CODE 6560–50–P September 23, 2020. the internet via live feed from the FCC’s The Federal Communications web page at www.fcc.gov/live and on the Commission will hold an Open Meeting FCC’s YouTube channel. on the subjects listed below on

ITEM NO. BUREAU SUBJECT

1 ...... Wireless Tele–Communcations TITLE: Facilitating Shared Use in the 3.1–3.55 GHz Band (WT Docket No. 19–348). SUMMARY: The Commission will consider a Report and Order that would remove the exist- ing non-federal allocations from the 3.3–3.55 GHz band as an important step toward mak- ing 100 megahertz of spectrum in the 3.45–3.55 GHz band available for commercial use, including 5G, throughout the contiguous United States. The Commission will also consider a Further Notice of Proposed Rulemaking that would propose to add a co-primary, non-fed- eral fixed and mobile (except aeronautical mobile) allocation to the 3.45–3.55 GHz band as well as service, technical, and competitive bidding rules for flexible-use licenses in the band. 2 ...... Wireless Tele–Communica- TITLE: Expanding Access to and Investment in the 4.9 GHz Band (WT Docket No. 07–100) tions. SUMMARY: The Commission will consider a Sixth Report and Order that would expand ac- cess to and investment in the 4.9 GHz (4940–4990 MHz) band by providing states the op- portunity to lease this spectrum to commercial entities, electric utilities, and others for both public safety and non-public safety purposes. The Commission also will consider a Sev- enth Further Notice of Proposed Rulemaking that would propose a new set of licensing rules and seek comment on ways to further facilitate access to and investment in the band. 3 ...... International ...... TITLE: Improving Transparency and Timeliness of Foreign Ownership Review Process (IB Docket No. 16–155). SUMMARY: The Commission will consider a Report and Order that would improve the timeli- ness and transparency of the process by which it seeks the views of Executive Branch agencies on any national security, law enforcement, foreign policy, and trade policy con- cerns related to certain applications filed with the Commission. 4 ...... Wireline Competition ...... TITLE: Promoting Caller ID Authentication to Combat Spoofed Robocalls (WC Docket No. 17–97) SUMMARY: The Commission will consider a Report and Order that would continue its work to implement the TRACED Act and promote the deployment of caller ID authentication technology to combat spoofed robocalls. 5 ...... Public Safety and Homeland TITLE: Combating 911 Fee Diversion (PS Docket Nos. 20–291, 09–14). Security. SUMMARY: The Commission will consider a Notice of Inquiry that would seek comment on ways to dissuade states and territories from diverting fees collected for 911 to other pur- poses.

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ITEM NO. BUREAU SUBJECT

6 ...... Media ...... TITLE: Modernizing Cable Service Change Notifications (MB Docket No. 19–347); Mod- ernization of Media Regulation Initiative (MB Docket No. 17–105) SUMMARY: The Commission will consider a Report and Order that would modernize require- ments for notices cable operators must provide subscribers and local franchising authori- ties. 7 ...... Media ...... TITLE: Eliminating Records Requirements for Cable Operator Interests in Video Program- ming (MB Docket No. 20–35); Modernization of Media Regulation Initiative (MB Docket No. 17–105). SUMMARY: The Commission will consider a Report and Order that would eliminate the re- quirement that cable operators maintain records in their online public inspection files re- garding the nature and extent of their attributable interests in video programming services. 8 ...... Consumer & Governmental Af- TITLE: Reforming IP Captioned Telephone Service Rates and Service Standards (CG Docket fairs. Nos. 13–24, 03–123). SUMMARY: The Commission will consider a Report and Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking that would set compensation rates for Internet Protocol Captioned Telephone Service (IP CTS), deny reconsideration of previously set IP CTS compensation rates, and propose service quality and performance measurement standards for captioned telephone services. 9 ...... Enforcement ...... TITLE: Enforcement Item. SUMMARY: The Commission will consider an enforcement action.

The meeting will be webcast with FEDERAL RESERVE SYSTEM 1. L. Jackson McConnell, Jr., open captioning at: www.fcc.gov/live. individually, Jenelle B. McConnell, Open captioning will be provided as Change in Bank Control Notices; individually, The L. Jackson McConnell, well as a text only version on the FCC Acquisitions of Shares of a Bank or Jr. Family Trust, The Mary Margaret website. Other reasonable Bank Holding Company McConnell Trust, The Lawson C. accommodations for people with McConnell Trust, and the Pinnacle Bank The notificants listed below have Employee Stock Ownership Plan, L. disabilities are available upon request. applied under the Change in Bank In your request, include a description of Jackson McConnell, Jr., as trustee of all Control Act (Act) (12 U.S.C. 1817(j)) and trusts and the plan, all of Elberton, the accommodation you will need and § 225.41 of the Board’s Regulation Y (12 a way we can contact you if we need Georgia; The Kathleen L. Korotzer CFR 225.41) to acquire shares of a bank Family Trust, Kathleen L. Korotzer, as more information. Last minute requests or bank holding company. The factors will be accepted but may be impossible trustee, Turner J. Korotzer, individually, that are considered in acting on the and Nicholas C. Korotzer, individually, to fill. Send an email to: [email protected] applications are set forth in paragraph 7 all of Orinda, California; The Alice M. or call the Consumer & Governmental of the Act (12 U.S.C. 1817(j)(7)). Eberhardt Revocable Trust and The Affairs Bureau at 202–418–0530. The public portions of the Linton W. Eberhardt, III Revocable Additional information concerning applications listed below, as well as Trust, Alice M. Eberhardt and Laura E. this meeting may be obtained from the other related filings required by the Still, as co-trustees of both trusts, and Office of Media Relations, (202) 418– Board, if any, are available for The Laura E. Stille Revocable Trust, 0500. Audio/Video coverage of the immediate inspection at the Federal Laura E. Stille, as trustee, all of meeting will be broadcast live with Reserve Bank(s) indicated below and at Spartanburg, South Carolina; and open captioning over the internet from the offices of the Board of Governors. Linton Eberhardt, IV, individually, of the FCC Live web page at www.fcc.gov/ This information may also be obtained Atlanta, Georgia; as a group acting in on an expedited basis, upon request, by live. concert to retain voting shares of contacting the appropriate Federal Pinnacle Financial Corporation and The Federal Communications Reserve Bank and from the Board’s thereby indirectly retain voting shares of Commission will hold an Open Meeting Freedom of Information Office at Pinnacle Bank, both of Elberton, on Tuesday, June 9, 2020, which is https://www.federalreserve.gov/foia/ Georgia. scheduled to commence at 10:30 a.m. request.htm. Interested persons may Due to the current COVID–19 pandemic express their views in writing on the Board of Governors of the Federal Reserve System, September 29, 2020. and related agency telework and standards enumerated in paragraph 7 of headquarters access policies, this the Act. Yao-Chin Chao, meeting will be in a wholly electronic Comments regarding each of these Assistant Secretary of the Board. format and will be open to the public on applications must be received at the [FR Doc. 2020–21856 Filed 10–1–20; 8:45 am] the internet via live feed from the FCC’s Reserve Bank indicated or the offices of BILLING CODE P web page at www.fcc.gov/live and on the the Board of Governors, Ann E. FCC’s YouTube channel. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, FEDERAL RESERVE SYSTEM Federal Communications Commission. Washington, DC 20551–0001, not later Change in Bank Control Notices; Marlene Dortch, than October 19, 2020. Acquisitions of Shares of a Bank or Secretary. A. Federal Reserve Bank of Atlanta Bank Holding Company [FR Doc. 2020–21776 Filed 10–1–20; 8:45 am] (Kathryn Haney, Assistant Vice BILLING CODE 6712–01–P President) 1000 Peachtree Street NE, The notificants listed below have Atlanta, Georgia 30309. Comments can applied under the Change in Bank also be sent electronically to Control Act (Act) (12 U.S.C. 1817(j)) and [email protected]: § 225.41 of the Board’s Regulation Y (12

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CFR 225.41) to acquire shares of a bank FEDERAL TRADE COMMISSION enforcement of the Rule.1 The or bank holding company. The factors franchisor must preserve materially that are considered in acting on the Agency Information Collection different copies of its FDD for 3 years, applications are set forth in paragraph 7 Activities; Submission for OMB as well as information that provides a of the Act (12 U.S.C. 1817(j)(7)). Review; Comment Request reasonable basis for any financial performance representation it elects to The public portions of the AGENCY: Federal Trade Commission. make. applications listed below, as well as ACTION: Notice. Estimated Annual Burden Hours: other related filings required by the 16,750. Board, if any, are available for SUMMARY: The Federal Trade Estimated Annual Labor Costs: immediate inspection at the Federal Commission (‘‘FTC’’ or ‘‘Commission’’) $1,037,125. Reserve Bank(s) indicated below and at requests that the Office of Management Estimated non-labor costs: the offices of the Board of Governors. and Budget (‘‘OMB’’) extend for an $7,250,000. This information may also be obtained additional three years the current Request for Comment: on an expedited basis, upon request, by Paperwork Reduction Act (‘‘PRA’’) contacting the appropriate Federal clearance for the information collection On , 2020, the Commission sought comment on the information Reserve Bank and from the Board’s requirements contained in its Trade collection requirements associated with Freedom of Information Office at Regulation Rule on Disclosure the Franchise Rule. 85 FR 19479 (Apr. https://www.federalreserve.gov/foia/ Requirements and Prohibitions Concerning Franchising (‘‘Franchise 7, 2020). No relevant comments were request.htm. Interested persons may received. Pursuant to the OMB express their views in writing on the Rule’’ or ‘‘Rule’’). That clearance expires on October 31, 2020. regulations, 5 CFR part 1320, the FTC is standards enumerated in paragraph 7 of providing this second opportunity for DATES: Comments must be submitted by the Act. public comment while seeking OMB November 2, 2020. Comments regarding each of these approval to renew clearance for the applications must be received at the ADDRESSES: Written comments and Rule’s information collection Reserve Bank indicated or the offices of recommendations for the proposed requirements. the Board of Governors, Ann E. information collection should be sent Your comment—including your name Misback, Secretary of the Board, 20th within 30 days of publication of this and your state—will be placed on the notice to www.reginfo.gov/public/do/ Street and Constitution Avenue, NW, public record of this proceeding. PRAMain. Find this particular Washington DC 20551–0001, not later Because your comment will be made information collection by selecting than October 16, 2020. public, you are solely responsible for ‘‘Currently under Review—Open for making sure that your comment does A. Federal Reserve Bank of Chicago Public Comments’’ or by using the not include any sensitive personal (Colette A. Fried, Assistant Vice search function. information, like anyone’s Social President) 230 South LaSalle Street, FOR FURTHER INFORMATION CONTACT: Security number, date of birth, driver’s Chicago, Illinois 60690–1414: Christine M. Todaro, Attorney, Division license number or other state 1. The Nathan & Shirley Rothner of Marketing Practices, Bureau of identification number or foreign country Family Trust II, Evanston, Illinois, Eric Consumer Protection, Federal Trade equivalent, passport number, financial A. Rothner, Chicago, Illinois, trustee; Commission, 600 Pennsylvania Avenue account number, or credit or debit card and the Rachel Rothner Accumulation NW, Room 8607, Washington, DC number. You are also solely responsible Trust II, the Melissa Rothner 20580, (202) 326–3711, [email protected]. for making sure that your comment does Accumulation Trust II, the William SUPPLEMENTARY INFORMATION: not include any sensitive health Rothner Accumulation Trust II, the Title: Franchise Rule, 16 CFR part information, like medical records or Daniel Rothner Accumulation Trust II, 436. other individually identifiable health the Adam Vales Accumulation Trust II, OMB Control Number: 3084–0107. information. In addition, do not include the Kimberly Vales Accumulation Trust Type of Review: Revision of a any ‘‘[t]rade secret or any commercial or II, and the Kathryn Vales Accumulation currently approved collection. financial information which is . . . Trust II, all of Evanston, Illinois, Gale F. Affected Public: Private Sector: privileged or confidential’’ as provided in Section 6(f) of the FTC Act, 15 U.S.C. Rothner, Chicago, Illinois, and David M. Businesses and other for-profit entities. 46(f), and FTC Rule 4.10(a)(2), 16 CFR Aronin, Skokie, Illinois, co-trustees; to Abstract: The Franchise Rule ensures 4.10(a)(2). In particular, do not include that consumers who are considering a join Eric A. Rothner and form the competitively sensitive information franchise investment have access to the Rothner Family Control Group, a group such as costs, sales statistics, material information they need to make acting in concert to retain 100 percent inventories, formulas, patterns devices, an informed investment decision and of the voting shares of Brickyard manufacturing processes, or customer compare different franchise offerings. Bancorp, Inc., and thereby indirectly names. control Brickyard Bank, both of The Rule requires franchisors to furnish Lincolnwood, Illinois. prospective purchasers with a Franchise Josephine Liu, Disclosure Document (‘‘FDD’’) that Assistant General Counsel for Legal Counsel. Board of Governors of the Federal Reserve provides information relating to the [FR Doc. 2020–21786 Filed 10–1–20; 8:45 am] System, September 28, 2020. franchisor, its business, the nature of the BILLING CODE 6750–01–P Yao-Chin Chao, proposed franchise, and any Assistant Secretary of the Board. representations by the franchisor about 1 The Rule was amended in 2007 to conform its [FR Doc. 2020–21791 Filed 10–1–20; 8:45 am] financial performance regarding actual disclosure requirements with the disclosure format BILLING CODE P or potential sales, income, or profits accepted by 15 states that have franchise made to a prospective franchise registration or disclosure laws. See 72 FR 15444 (Mar. 30, 2007). The amended Rule has significantly purchaser. The Rule also requires that minimized any compliance burden beyond what is franchisors maintain records to facilitate required by state law.

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DEPARTMENT OF HEALTH AND Matters to be Considered: The agenda Prevention and the Agency for Toxic HUMAN SERVICES will include discussions on current Substances and Disease Registry. topics related to breast cancer in young Kalwant Smagh, Centers for Disease Control and women. These will include Mental/ Prevention Behavioral Health, Sexual Health, Director, Strategic Business Initiatives Unit, Office of the Chief Operating Officer, Centers Genetics and Genomics, and Provider for Disease Control and Prevention. Advisory Committee on Breast Cancer Engagement. Agenda items are subject in Young Women (ACBCYW); Meeting to change as priorities dictate. [FR Doc. 2020–21851 Filed 10–1–20; 8:45 am] BILLING CODE 4163–18–P AGENCY: Centers for Disease Control and The Director, Strategic Business Prevention (CDC), Department of Health Initiatives Unit, Office of the Chief Operating Officer, Centers for Disease and Human Services (HHS). DEPARTMENT OF HEALTH AND Control and Prevention, has been ACTION: Notice of meeting. HUMAN SERVICES delegated the authority to sign Federal SUMMARY: In accordance with the Register notices pertaining to Administration for Children and Federal Advisory Committee Act, the announcements of meetings and other Families CDC announces the following meeting committee management activities, for for the Advisory Committee on Breast both the Centers for Disease Control and Statement of Organization, Functions, Cancer in Young Women (ACBCYW). Prevention and the Agency for Toxic and Delegations of Authority This meeting is open to the public, Substances and Disease Registry. AGENCY: Office on Trafficking in limited only by audio and web Kalwant Smagh, Persons, Administration for Children conference lines (100 audio and web Director, Strategic Business Initiatives Unit, and Families, HHS. conference lines available). The public Office of the Chief Operating Officer, Centers ACTION: Notice. is welcome to listen to the meeting by for Disease Control and Prevention. accessing the teleconference and web [FR Doc. 2020–21848 Filed 10–1–20; 8:45 am] SUMMARY: Statement of Organizations, conference information below. Online BILLING CODE 4163–18–P Functions, and Delegations of Registration Required: All ACBCYW Authority. The Administration for Meeting participants must register for Children and Families (ACF) is the meeting online at least 5 business DEPARTMENT OF HEALTH AND restructuring the Office on Trafficking days in advance at https://www.cdc.gov/ _ _ _ HUMAN SERVICES in Persons (OTIP) within the Office of cancer/breast/what cdc is doing/ the Assistant Secretary for Children and conference.htm. Please complete all the Centers for Disease Control and Families, ACF, into three divisions— required fields before submitting your Prevention Prevention, Protection, and Research registration and submit no later than and Policy—that report to the OTIP November 16, 2020. Advisory Committee on Immunization Director. DATES: The meeting will be held on Practices: Notice of Charter Renewal FOR FURTHER INFORMATION CONTACT: , 2020, from 8:00 a.m. to AGENCY: Centers for Disease Control and Katherine Chon, Director, Office on 1:00 p.m., EST. Prevention (CDC), Department of Health Trafficking in Persons, Administration ADDRESSES: The teleconference access is and Human Services (HHS). for Children and Families, 330 C Street 1–888–606–5944, and the passcode is ACTION: Notice of charter renewal. SW, Washington, DC 20202; (202) 401– 8340472. The web conference access is 9372. https://adobeconnect.cdc.gov/ SUMMARY: This gives notice under the SUPPLEMENTARY INFORMATION: This rwa641n3jrry/. Federal Advisory Committee Act of notice amends Part K of the Statement FOR FURTHER INFORMATION CONTACT: October 6, 1972, that the Advisory of Organization, Functions, and Jeremy McCallister, Designated Federal Committee on Immunization Practices, Delegations of Authority of the Officer, National Center for Chronic Centers for Disease Control and Department of Health and Human Disease Prevention and Health Prevention, Department of Health and Services (DHSS), Administration for Promotion, CDC, 5770 Buford Highway, Human Services, has been renewed for Children and Families (ACF), Office on NE, Mailstop S107–4, Atlanta, Georgia a 2-year period through , 2022. Trafficking in Persons (OTIP). The 30341, Telephone (404) 639–7989, Fax FOR FURTHER INFORMATION CONTACT: Office of the Assistant Secretary for (770) 488–4760, Email: acbcyw@ Amanda Cohn, M.D., Designated Children and Families established OTIP cdc.gov. Federal Officer, Advisory Committee on by an amendment to the Statement of SUPPLEMENTARY INFORMATION: Purpose: Immunization Practices, Centers for Organization for ACF published at 80 The committee provides advice and Disease Control and Prevention, FR 33269, June 11, 2015. The guidance to the Secretary, HHS; the Department of Health and Human amendment added OTIP as a new office Assistant Secretary for Health; and the Services, 1600 Clifton Road NE, under the Office of the Assistant Director, CDC, regarding the formative Mailstop H24–8, Atlanta, Georgia Secretary for Children and Families. research, development, implementation 30329–4027, telephone (404) 639–6039, OTIP is responsible for developing and and evaluation of evidence-based or fax (404) 315–4679. implementing programs that assist both activities designed to prevent breast SUPPLEMENTARY INFORMATION: The foreign and domestic victims of human cancer (particularly among those at Director, Strategic Business Initiatives trafficking as well as implementing anti- heightened risk) and promote the early Unit, Office of the Chief Operating trafficking legislation, appropriations, detection and support of young women Officer, Centers for Disease Control and and Administration-driven priorities. who develop the disease. The advice Prevention, has been delegated the OTIP executes its mission through grant provided by the Committee will assist in authority to sign Federal Register and contract awards and by leveraging ensuring scientific quality, timeliness, notices pertaining to announcements of government and public-private utility, and dissemination of credible meetings and other committee partnerships. OTIP executes these appropriate messages and resource management activities, for both the responsibilities with a combination of materials. Centers for Disease Control and federal and contract staff, and

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occasional graduate-level interns. Since OTIP has the following three development of program information its inception in June 2015, OTIP’s divisions: Protection (victim assistance), systems, prepares annual and ad hoc responsibilities have expanded Prevention (capacity building, reports and informational materials, and exponentially driven by new statutory prevention, and public awareness), and ensures program development is requirements, increased appropriations, Research and Policy. A description of evidence-based and theory-driven Executive Order directives, each of the proposed divisions follows. through research and evaluation efforts. Administration-driven priorities, and Protection Division Linda K. Hitt, emerging issues in the anti-trafficking field that have necessitated an increase The Protection Division is comprised Executive Secretariat Certifying Officer. in inter- and intra-agency collaboration. of OTIP’s victim service and assistance [FR Doc. 2020–21807 Filed 10–1–20; 8:45 am] The changes announced herein activities. It includes the Trafficking BILLING CODE 4184–47–P describe the restructuring of OTIP Victim Assistance Program, the within the Office of the Assistant Domestic Victims of Human Trafficking DEPARTMENT OF HEALTH AND Secretary for Children and Families, Programs, the Child Eligibility and HUMAN SERVICES ACF, into three divisions—Prevention, Adult Certification programs, Child Victim Coordination Activities, and the Protection, and Research and Policy— Food and Drug Administration that report to the OTIP Director. National Human Trafficking Hotline. Through a combination of grant [Docket No. FDA–2018–D–2382] I. Under Chapter KA.20, the Office on activities and internal direct services, Trafficking in Persons Makes the OTIP assists adult and minor, foreign Opioid Use Disorder: Endpoints for Following Changes and domestic victims of severe forms of Demonstrating Effectiveness of Drugs trafficking in persons and participates in for Treatment; Guidance for Industry; KA.10 E. Organization. The Office on intra- and inter-agency coordination Availability Trafficking in Persons (KAI): OTIP has efforts to inform anti-trafficking program the following three strategic goals: and policy development to improve our AGENCY: Food and Drug Administration, Establish a cohesive national human response to victims and efficiency in HHS. trafficking victim service delivery federally supported programming. ACTION: Notice of availability. system; develop a culture of data- informed anti-trafficking programming Prevention Division SUMMARY: The Food and Drug and policymaking; and integrate The Prevention Division develops Administration (FDA or Agency) is survivor-informed anti-trafficking efforts cutting-edge training and technical announcing the availability of a final into HHS prevention strategies. OTIP assistance, promotes survivor guidance for industry entitled ‘‘Opioid implements numerous legislatively engagement, raises public awareness, Use Disorder: Endpoints for mandated programs and policies to facilitates regional outreach and Demonstrating Effectiveness of Drugs for combat human trafficking. OTIP’s coordination, and disseminates Treatment.’’ This guidance addresses activities are authorized by federal prevention education resources with the clinical endpoints acceptable to statutes including, but not limited to, ultimate goal of assisting communities demonstrate effectiveness of drugs for the Trafficking Victims Protection Act, and programs in building capacity to treatment of opioid use disorder. This as amended and reauthorized; the effectively identify victims, implement guidance addresses comments received Justice for Victims of Trafficking Act; trafficking prevention efforts, and for and finalizes the draft guidance of the Preventing Sex Trafficking and coordinate education and outreach the same name issued , 2018. Strengthening Families Act; the efforts. The Division oversees the DATES: The announcement of the Frederick Douglass Trafficking Victims National Human Trafficking Training guidance is published in the Federal Prevention and Protection and Technical Assistance Center, Register on October 2, 2020. Reauthorization Act; and the Stop, prevention education programming and ADDRESSES: You may submit either Observe, Ask, and Respond to Health the National Prevention Action Plan, the electronic or written comments on and Wellness Act (or the SOAR to SOAR to Health and Wellness program, Agency guidances at any time as Health and Wellness Act). and the Look Beneath the Surface Public follows: The OTIP Director reports to the Awareness Campaign and Electronic Submissions Assistant Secretary, ACF. The Director Communication that includes OTIP’s provides strategic leadership and website content and conference and Submit electronic comments in the direction on anti-trafficking programs meeting planning and representation. following way: and policies, anti-trafficking prevention • Federal eRulemaking Portal: efforts, building health and human Research and Policy Division https://www.regulations.gov. Follow the service capacity to respond to human The Research and Policy Division is instructions for submitting comments. trafficking, strategies to increase victim responsible for the identification, Comments submitted electronically, identification and access to services, coordination, and implementation of the including attachments, to https:// and strengthen the long-term health and anti-trafficking research agenda and www.regulations.gov will be posted to well-being outcomes of survivors of policy development activities. The the docket unchanged. Because your human trafficking. OTIP is responsible Division coordinates program comment will be made public, you are for the overall leadership of anti- evaluation and research, prepares solely responsible for ensuring that your trafficking programs and services under documentation to comply with comment does not include any the purview of ACF, including, but not regulatory requirements, reviews and confidential information that you or a limited to, developing and analyzes proposed legislation, develops third party may not wish to be posted, implementing programs that assist both and tracks program performance such as medical information, your or foreign and domestic victims of human metrics, represents OTIP at internal and anyone else’s Social Security number, or trafficking as well as implementing anti- external data and policy events, confidential business information, such trafficking statutory, appropriations, and provides technical support for data as a manufacturing process. Please note Administration-driven priorities. collection efforts, guides the that if you include your name, contact

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information, or other information that and other applicable disclosure law. For person and is not binding on FDA or the identifies you in the body of your more information about FDA’s posting public. You can use an alternative comments, that information will be of comments to public dockets, see 80 approach if it satisfies the requirements posted on https://www.regulations.gov. FR 56469, September 18, 2015, or access of the applicable statutes and • If you want to submit a comment the information at: https://www.gpo.gov/ regulations. with confidential information that you fdsys/pkg/FR-2015-09-18/pdf/2015- II. Paperwork Reduction Act of 1995 do not wish to be made available to the 23389.pdf. public, submit the comment as a Docket: For access to the docket to This guidance refers to previously written/paper submission and in the read background documents or the approved collections of information that manner detailed (see ‘‘Written/Paper electronic and written/paper comments are subject to review by the Office of Submissions’’ and ‘‘Instructions’’). received, go to https:// Management and Budget (OMB) under the Paperwork Reduction Act of 1995 Written/Paper Submissions www.regulations.gov and insert the docket number, found in brackets in the (44 U.S.C. 3501–3521). The collections Submit written/paper submissions as heading of this document, into the of information in 21 CFR part 312 have follows: been approved under OMB control • ‘‘Search’’ box and follow the prompts Mail/Hand Delivery/Courier (for and/or go to the Dockets Management number 0910–0014. written/paper submissions): Dockets Staff, 5630 Fishers Lane, Rm. 1061, Management Staff (HFA–305), Food and III. Electronic Access Rockville, MD 20852, 240–402–7500. Persons with access to the internet Drug Administration, 5630 Fishers You may submit comments on any Lane, Rm. 1061, Rockville, MD 20852. may obtain the guidance at either guidance at any time (see 21 CFR • For written/paper comments https://www.fda.gov/drugs/guidance- 10.115(g)(5)). submitted to the Dockets Management compliance-regulatory-information/ Submit written requests for single Staff, FDA will post your comment, as guidances-drugs or https:// copies of the guidance to the Division of well as any attachments, except for www.regulations.gov. information submitted, marked and Drug Information, Center for Drug Evaluation and Research, Food and Dated: September 29, 2020. identified, as confidential, if submitted Lauren K. Roth, as detailed in ‘‘Instructions.’’ Drug Administration, 10001 New Instructions: All submissions received Hampshire Ave., Hillandale Building, Associate Commissioner for Policy. must include the Docket No. FDA– 4th Floor, Silver Spring, MD 20993– [FR Doc. 2020–21826 Filed 10–1–20; 8:45 am] 2018–D–2382 for ‘‘Opioid Use Disorder: 0002. Send one self-addressed adhesive BILLING CODE 4164–01–P Endpoints for Demonstrating label to assist that office in processing Effectiveness of Drugs for Treatment.’’ your requests. See the SUPPLEMENTARY DEPARTMENT OF HEALTH AND Received comments will be placed in INFORMATION section for electronic HUMAN SERVICES the docket and, except for those access to the guidance document. FOR FURTHER INFORMATION CONTACT: submitted as ‘‘Confidential Food and Drug Administration Submissions,’’ publicly viewable at Silvana Borges, Center for Drug https://www.regulations.gov or at the Evaluation and Research, Food and [Docket No. FDA–2014–N–0386] Dockets Management Staff between 9 Drug Administration, 10903 New Agency Information Collection a.m. and 4 p.m., Monday through Hampshire Ave., Bldg. 22, Rm. 3200, Activities; Proposed Collection; Friday, 240–402–7500. Silver Spring, MD 20993–0002, 301– • Confidential Submissions—To 796–0963. Comment Request; Orphan Drugs submit a comment with confidential SUPPLEMENTARY INFORMATION: AGENCY: Food and Drug Administration, information that you do not wish to be HHS. I. Background made publicly available, submit your ACTION: Notice. comments only as a written/paper FDA is announcing the availability of submission. You should submit two a final guidance for industry entitled SUMMARY: The Food and Drug copies total. One copy will include the ‘‘Opioid Use Disorder: Endpoints for Administration (FDA or Agency) is information you claim to be confidential Demonstrating Effectiveness of Drugs for announcing an opportunity for public with a heading or cover note that states Treatment.’’ This guidance addresses comment on the proposed collection of ‘‘THIS DOCUMENT CONTAINS clinical endpoints acceptable to certain information by the Agency. CONFIDENTIAL INFORMATION.’’ The demonstrate effectiveness of drugs for Under the Paperwork Reduction Act of Agency will review this copy, including treatment of opioid use disorder. 1995 (PRA), Federal Agencies are the claimed confidential information, in This guidance finalizes the draft required to publish notice in the its consideration of comments. The guidance of the same name issued Federal Register concerning each second copy, which will have the August 7, 2018 (83 FR 38699). All the proposed collection of information, claimed confidential information public comments received on the draft including each proposed extension of an redacted/blacked out, will be available guidance have been considered and the existing collection of information, and for public viewing and posted on guidance has been revised as to allow 60 days for public comment in https://www.regulations.gov. Submit appropriate in response to such response to the notice. This notice both copies to the Dockets Management comments along with a few editorial solicits comments on information Staff. If you do not wish your name and changes. collection associated with Orphan Drug contact information to be made publicly This guidance is being issued provisions of the Federal Food, Drug, available, you can provide this consistent with FDA’s good guidance and Cosmetic Act (FD&C Act) and information on the cover sheet and not practices regulation (21 CFR 10.115). implementing regulations. in the body of your comments and you The guidance represents the current DATES: Submit either electronic or must identify this information as thinking of FDA on ‘‘Opioid Use written comments on the collection of ‘‘confidential.’’ Any information marked Disorder: Endpoints for Demonstrating information by December 1, 2020. as ‘‘confidential’’ will not be disclosed Effectiveness of Drugs for Treatment.’’ It ADDRESSES: You may submit comments except in accordance with 21 CFR 10.20 does not establish any rights for any as follows. Please note that late,

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untimely filed comments will not be for those submitted as ‘‘Confidential 1320.3(c) and includes Agency requests considered. Electronic comments must Submissions,’’ publicly viewable at or requirements that members of the be submitted on or before December 1, https://www.regulations.gov or at the public submit reports, keep records, or 2020. The https://www.regulations.gov Dockets Management Staff between 9 provide information to a third party. electronic filing system will accept a.m. and 4 p.m., Monday through Section 3506(c)(2)(A) of the PRA (44 comments until 11:59 p.m. Eastern Time Friday, 240–402–7500. U.S.C. 3506(c)(2)(A)) requires Federal at the end of December 1, 2020. • Confidential Submissions—To Agencies to provide a 60-day notice in Comments received by mail/hand submit a comment with confidential the Federal Register concerning each delivery/courier (for written/paper information that you do not wish to be proposed collection of information, submissions) will be considered timely made publicly available, submit your including each proposed extension of an if they are postmarked or the delivery comments only as a written/paper existing collection of information, service acceptance receipt is on or submission. You should submit two before submitting the collection to OMB before that date. copies total. One copy will include the for approval. To comply with this information you claim to be confidential requirement, FDA is publishing notice Electronic Submissions with a heading or cover note that states of the proposed collection of Submit electronic comments in the ‘‘THIS DOCUMENT CONTAINS information set forth in this document. following way: CONFIDENTIAL INFORMATION.’’ The With respect to the following • Federal eRulemaking Portal: Agency will review this copy, including collection of information, FDA invites https://www.regulations.gov. Follow the the claimed confidential information, in comments on these topics: (1) Whether instructions for submitting comments. its consideration of comments. The the proposed collection of information Comments submitted electronically, second copy, which will have the is necessary for the proper performance including attachments, to https:// claimed confidential information of FDA’s functions, including whether www.regulations.gov will be posted to redacted/blacked out, will be available the information will have practical the docket unchanged. Because your for public viewing and posted on utility; (2) the accuracy of FDA’s comment will be made public, you are https://www.regulations.gov. Submit estimate of the burden of the proposed solely responsible for ensuring that your both copies to the Dockets Management collection of information, including the comment does not include any Staff. If you do not wish your name and validity of the methodology and confidential information that you or a contact information to be made publicly assumptions used; (3) ways to enhance third party may not wish to be posted, available, you can provide this the quality, utility, and clarity of the such as medical information, your or information on the cover sheet and not information to be collected; and (4) anyone else’s Social Security number, or in the body of your comments and you ways to minimize the burden of the confidential business information, such must identify this information as collection of information on as a manufacturing process. Please note ‘‘confidential.’’ Any information marked respondents, including through the use that if you include your name, contact as ‘‘confidential’’ will not be disclosed of automated collection techniques, information, or other information that except in accordance with 21 CFR 10.20 when appropriate, and other forms of identifies you in the body of your and other applicable disclosure law. For information technology. comments, that information will be more information about FDA’s posting posted on https://www.regulations.gov. of comments to public dockets, see 80 Orphan Drugs; 21 CFR Part 316 • If you want to submit a comment FR 56469, September 18, 2015, or access OMB Control Number 0910–0167— with confidential information that you the information at: https:// Revision do not wish to be made available to the www.govinfo.gov/content/pkg/FR-2015- This information collection supports public, submit the comment as a 09-18/pdf/2015-23389.pdf. written/paper submission and in the FDA regulations implementing sections Docket: For access to the docket to 525, 526, 527, and 528 of the FD&C Act, manner detailed (see ‘‘Written/Paper read background documents or the Submissions’’ and ‘‘Instructions’’). as well as related guidance. Sections electronic and written/paper comments 525, 526, 527, and 528 pertain to the Written/Paper Submissions received, go to https:// development of drugs for rare diseases www.regulations.gov and insert the Submit written/paper submissions as or conditions, including biological docket number, found in brackets in the products and antibiotics, otherwise follows: heading of this document, into the • Mail/Hand delivery/Courier (for known or referred to as ‘‘Orphan ‘‘Search’’ box and follow the prompts Drugs.’’ Specifically, section 525 of the written/paper submissions): Dockets and/or go to the Dockets Management Management Staff (HFA–305), Food and FD&C Act (21 U.S.C. 360aa) requires Staff, 5630 Fishers Lane, Rm. 1061, written recommendations on studies Drug Administration, 5630 Fishers Rockville, MD 20852, 240–402–7500. Lane, Rm. 1061, Rockville, MD 20852. required for approval of a marketing • For written/paper comments FOR FURTHER INFORMATION CONTACT: application for a drug for a rare disease submitted to the Dockets Management Jonna Capezzuto, Office of Operations, or condition. The information collection Staff, FDA will post your comment, as Food and Drug Administration, Three in 21 CFR 316.10, 316.12, and 316.14 is well as any attachments, except for White Flint North, 10A–12M, 11601 approved under OMB control numbers information submitted, marked and Landsdown St., North Bethesda, MD 0910–0001 and 0910–0014. Section 526 identified, as confidential, if submitted 20852, 301–796–3794, PRAStaff@ of the FD&C Act (21 U.S.C. 360bb) as detailed in ‘‘Instructions.’’ fda.hhs.gov. provides for designation of drugs as Instructions: All submissions received SUPPLEMENTARY INFORMATION: Under the orphan drugs when certain conditions must include the Docket No. FDA– PRA (44 U.S.C. 3501–3521), Federal are met; section 527 (21 U.S.C. 360cc) 2014–N–0386 for ‘‘Agency Information Agencies must obtain approval from the provides conditions under which a Collection Activities; Proposed Office of Management and Budget sponsor of an approved orphan drug Collection; Comment Request; Orphan (OMB) for each collection of enjoys exclusive FDA marketing Drugs.’’ Received comments, those filed information they conduct or sponsor. approval for that drug for the orphan in a timely manner (see ADDRESSES), ‘‘Collection of information’’ is defined indication for a period of 7 years; and will be placed in the docket and, except in 44 U.S.C. 3502(3) and 5 CFR finally, section 528 (21 U.S.C. 360dd) is

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intended to encourage sponsors to make Industry, Researchers, Patient Groups, intended for rare diseases or conditions investigational orphan drugs available and Food and Drug Administration Staff from only FDA. The form is a simplified for treatment of persons in need on an on Meetings With the Office of Orphan method for sponsors to provide only open protocol basis before the drug has Products Development,’’ provides information required by 21 CFR 316.20 been approved for general marketing. recommendations to industry, for FDA to make a decision. Open protocols may permit patients researchers, patient groups, and other During this public health emergency who are not part of the formal clinical stakeholders interested in requesting a associated with the COVID–19 investigation to obtain treatment where meeting, including a teleconference, pandemic, the OOPD is providing adequate supplies exist and no with OOPD on issues related to orphan sponsors with increased flexibility for alternative effective therapy is available. drug designation requests, humanitarian submission of orphan drug designation We have issued regulations in part use device designation requests, rare requests and related submissions 316 (21 CFR part 316) to implement the pediatric disease designation requests, (amendments, annual reports, etc.). Orphan Drug provisions of the FD&C funding opportunities through the During this public health emergency, Act and to set forth procedures and Orphan Products Grants Program and orphan drug designation, humanitarian requirements related to requesting the Pediatric Device Consortia Grants use device designation, and rare recommendations for investigations of Program, and orphan product patient pediatric disease designation requests drugs for rare diseases or conditions; related topics of concern. It is also and submissions may be submitted requesting designation of a drug for a intended to assist OOPD staff in electronically by email to the OOPD. rare disease or condition; or requesting addressing such meeting requests. This When transmitting information to the exclusive approval for a drug for a rare guidance describes procedures for Orphan Drug Designation Program via disease or condition. To assist requesting, preparing, scheduling, email, please utilize the mailbox respondents and consistent with 21 CFR conducting, and documenting such [email protected]. The use of part 316.50, our Office of Orphan meetings, and discusses background automated read receipt is recommended Products Development (OOPD) information we recommend be included to avoid the need to call to verify receipt maintains and makes publicly available in such requests. Information collection of the email. Sponsors and others who guidance documents that apply to the attendant to recommendations in the plan to email information to FDA that Orphan Drug provisions of the FD&C guidance are currently approved under is considered to be private, sensitive, Act and regulations in part 316. The list OMB control number 0910–0787, proprietary, or commercial confidential is maintained on the internet and however for efficiency of Agency are strongly encouraged to send it from guidance documents are issued in operations we are consolidating it into an FDA secured email address so the accordance with our Good Guidance this related information collection. The transmission is encrypted. The OOPD Practice regulations in 21 CFR part guidance is available at https:// will assume that the addresses of emails 10.115 which provide for public www.fda.gov/media/92815/download. received or email addresses provided as comment at any time. Accordingly, we The FDA Orphan Drug Designation a point of contact are FDA secure when are revising the information collection Request Form (Form FDA 4035) is responding to those email addresses. to include Agency guidance. The intended to benefit sponsors who desire We estimate the burden of the document entitled, ‘‘Guidance for to seek orphan designation of drugs information collection as follows:

TABLE 1—ESTIMATED ANNUAL REPORTING BURDEN 1

Annual 21 CFR section Number of frequency per Total annual Hours per Total hours respondents response responses response

Content and format of a request for designation; request for verification of status; amendment to designation ...... 534 1.25 668 135 90,180 §§ 316.20, 316.21, 316.26 (Form FDA 4035) ...... 534 1.25 668 32 21,376 § 316.22; Notifications of changes in agents ...... 132 1 70 2 264 § 316.24(a); Deficiency letters and granting orphan-drug designation ...... 20 1 20 2 40 § 316.27; Submissions to change ownership of orphan- drug designation ...... 104 1 104 5 520 § 316.30; Annual reports ...... 744 1 744 3 2,232 § 316.36; Assurance of the availability of sufficient quan- tities of the orphan drug; holder’s consent for the ap- proval of other marketing applications for the same drug 1 3 3 15 45 Guidance Recommendations: Meeting requests to OOPD and related submission packages ...... 2,508 1 2,508 3.595 9,016

Total ...... 123,623 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

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Based on our evaluation, we have comment will be made public, you are Staff. If you do not wish your name and adjusted the currently approved burden solely responsible for ensuring that your contact information to be made publicly estimate we attribute to information comment does not include any available, you can provide this collection activities associated with our confidential information that you or a information on the cover sheet and not Orphan Drug program to reflect an third party may not wish to be posted, in the body of your comments and you increase in submissions. such as medical information, your or must identify this information as Dated: September 28, 2020. anyone else’s Social Security number, or ‘‘confidential.’’ Any information marked confidential business information, such Lauren K. Roth, as ‘‘confidential’’ will not be disclosed as a manufacturing process. Please note except in accordance with 21 CFR 10.20 Associate Commissioner for Policy. that if you include your name, contact and other applicable disclosure law. For [FR Doc. 2020–21843 Filed 10–1–20; 8:45 am] information, or other information that more information about FDA’s posting BILLING CODE 4164–01–P identifies you in the body of your of comments to public dockets, see 80 comments, that information will be FR 56469, September 18, 2015, or access posted on https://www.regulations.gov. the information at: https:// DEPARTMENT OF HEALTH AND • If you want to submit a comment www.govinfo.gov/content/pkg/FR-2015- HUMAN SERVICES with confidential information that you 09-18/pdf/2015-23389.pdf. do not wish to be made available to the Food and Drug Administration Docket: For access to the docket to public, submit the comment as a read background documents or the [Docket No. FDA–2020–D–1497] written/paper submission and in the electronic and written/paper comments manner detailed (see ‘‘Written/Paper received, go to https:// Bladder Cancer: Developing Drugs and Submissions’’ and ‘‘Instructions’’). www.regulations.gov and insert the Biologics for Adjuvant Treatment; Written/Paper Submissions docket number, found in brackets in the Draft Guidance for Industry; heading of this document, into the Availability Submit written/paper submissions as ‘‘Search’’ box and follow the prompts follows: and/or go to the Dockets Management AGENCY: Food and Drug Administration, • Mail/Hand Delivery/Courier (for Staff, 5630 Fishers Lane, Rm. 1061, HHS. written/paper submissions): Dockets Rockville, MD 20852, 240–402–7500. ACTION: Notice of availability. Management Staff (HFA–305), Food and You may submit comments on any Drug Administration, 5630 Fishers SUMMARY: The Food and Drug guidance at any time (see 21 CFR Lane, Rm. 1061, Rockville, MD 20852. Administration (FDA or Agency) is • For written/paper comments 10.115(g)(5)). Submit written requests announcing the availability of a draft submitted to the Dockets Management for single copies of the draft guidance to guidance for industry entitled ‘‘Bladder Staff, FDA will post your comment, as the Division of Drug Information, Center Cancer: Developing Drugs and Biologics well as any attachments, except for for Drug Evaluation and Research for Adjuvant Treatment.’’ This draft information submitted, marked and (CDER), Food and Drug Administration, guidance provides recommendations to identified, as confidential, if submitted 10001 New Hampshire Ave., Hillandale sponsors regarding the development of as detailed in ‘‘Instructions.’’ Building, 4th Floor, Silver Spring, MD drugs and biologics (referred to as drugs Instructions: All submissions received 20993–0002 or to the Office of in this document) for the adjuvant must include the Docket No. FDA– Communication, Outreach and treatment of muscle-invasive bladder 2020–D–1497 for ‘‘Bladder Cancer: Development, Center for Biologics cancer. The draft guidance includes Developing Drugs and Biologics for Evaluation and Research (CBER), Food recommendations regarding eligibility Adjuvant Treatment.’’ Received and Drug Administration, 10903 New criteria, choice of comparator, follow up comments will be placed in the docket Hampshire Ave., Bldg. 71, Rm. 3128, imaging assessments, determination of and, except for those submitted as Silver Spring, MD 20993–0002. Send disease recurrence, analyses of disease- ‘‘Confidential Submissions,’’ publicly one self-addressed adhesive label to free survival, and interpretation of trial viewable at https://www.regulations.gov assist that office in processing your results. This draft guidance is intended or at the Dockets Management Staff requests. The draft guidance may also be to facilitate the development of drugs between 9 a.m. and 4 p.m., Monday obtained by mail by calling CBER at 1– for the adjuvant treatment of bladder through Friday, 240–402–7500. 800–835–4709 or 240–402–8010. See cancer. • Confidential Submissions—To the SUPPLEMENTARY INFORMATION section DATES: Submit either electronic or submit a comment with confidential for electronic access to the draft written comments on the draft guidance information that you do not wish to be guidance document. by December 1, 2020 to ensure that the made publicly available, submit your FOR FURTHER INFORMATION CONTACT: Julia Agency considers your comment on this comments only as a written/paper Beaver, Center for Drug Evaluation and draft guidance before it begins work on submission. You should submit two Research, Food and Drug the final version of the guidance. copies total. One copy will include the Administration, 10903 New Hampshire ADDRESSES: You may submit comments information you claim to be confidential Ave., Bldg. 22, Rm. 2100, Silver Spring, on any guidance at any time as follows: with a heading or cover note that states MD 20993–0002, 240–402–0489 or ‘‘THIS DOCUMENT CONTAINS Stephen Ripley, Center for Biologics Electronic Submissions CONFIDENTIAL INFORMATION.’’ The Evaluation and Research, Food and Submit electronic comments in the Agency will review this copy, including Drug Administration, 10903 New following way: the claimed confidential information, in Hampshire Ave., Bldg. 71, Rm. 7301, • Federal eRulemaking Portal: its consideration of comments. The Silver Spring, MD 20993–0002, 240– https://www.regulations.gov. Follow the second copy, which will have the 402–7911. instructions for submitting comments. claimed confidential information SUPPLEMENTARY INFORMATION: Comments submitted electronically, redacted/blacked out, will be available including attachments, to https:// for public viewing and posted on I. Background www.regulations.gov will be posted to https://www.regulations.gov. Submit FDA is announcing the availability of the docket unchanged. Because your both copies to the Dockets Management a draft guidance for industry entitled

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‘‘Bladder Cancer: Developing Drugs and III. Electronic Access Comments submitted electronically, Biologics for Adjuvant Treatment.’’ This Persons with access to the internet including attachments, to https:// draft guidance provides may obtain the draft guidance at either www.regulations.gov will be posted to recommendations to sponsors regarding https://www.fda.gov/drugs/guidance- the docket unchanged. Because your the development of drugs regulated by compliance-regulatory-information/ comment will be made public, you are the CDER and CBER for the adjuvant guidances-drugs, https://www.fda.gov/ solely responsible for ensuring that your treatment of muscle-invasive bladder vaccines-blood-biologics/guidance- comment does not include any cancer. The draft guidance includes compliance-regulatory-information- confidential information that you or a recommendations regarding eligibility biologics/biologics-guidances, or https:// third party may not wish to be posted, criteria, choice of comparator, follow up www.regulations.gov. such as medical information, your or imaging assessments, determination of anyone else’s Social Security number, or disease recurrence, analyses of disease- Dated: September 28, 2020. confidential business information, such free survival (DFS), and interpretation of Lauren K. Roth, as a manufacturing process. Please note trial results. Although FDA may Associate Commissioner for Policy. that if you include your name, contact consider endpoints other than DFS for [FR Doc. 2020–21839 Filed 10–1–20; 8:45 am] information, or other information that the adjuvant treatment of muscle- BILLING CODE 4164–01–P identifies you in the body of your invasive bladder cancer, this guidance is comments, that information will be focused on cancer trials with DFS as the posted on https://www.regulations.gov. • primary efficacy endpoint. DEPARTMENT OF HEALTH AND If you want to submit a comment Adjuvant muscle-invasive bladder HUMAN SERVICES with confidential information that you cancer clinical trials are an active area do not wish to be made available to the Food and Drug Administration of research. There is significant public, submit the comment as a variability in the design, conduct, and [Docket No. FDA–2020–D–1496] written/paper submission and in the analysis of these trials, including the manner detailed (see ‘‘Written/Paper eligibility criteria, radiological disease Renal Cell Carcinoma: Developing Submissions’’ and ‘‘Instructions’’). assessments, the definition of disease Drugs and Biologics for Adjuvant Written/Paper Submissions recurrence, and the date used to define Treatment; Draft Guidance for Industry; Availability Submit written/paper submissions as the DFS endpoint in these trials. follows: Consistency in these aspects within and AGENCY: Food and Drug Administration, • Mail/Hand delivery/Courier (for across trials may facilitate interpretation HHS. written/paper submissions): Dockets of trial results. These issues were ACTION: Notice of availability. Management Staff (HFA–305), Food and discussed at an FDA-National Cancer Drug Administration, 5630 Fishers Institute public workshop held on SUMMARY: The Food and Drug Lane, Rm. 1061, Rockville, MD 20852. , 2017. This draft guidance Administration (FDA or Agency) is • For written/paper comments provides recommendations on these announcing the availability of a draft submitted to the Dockets Management issues to facilitate adjuvant muscle- guidance for industry entitled ‘‘Renal Staff, FDA will post your comment, as invasive bladder cancer clinical trials. Cell Carcinoma: Developing Drugs and well as any attachments, except for This draft guidance is being issued Biologics for Adjuvant Treatment.’’ This information submitted, marked and consistent with FDA’s good guidance draft guidance provides identified, as confidential, if submitted practices regulation (21 CFR 10.115). recommendations to sponsors regarding as detailed in ‘‘Instructions.’’ The draft guidance, when finalized, will the development of drugs and biologics Instructions: All submissions received represent the current thinking of FDA (referred to as drugs in this document) must include the Docket No. FDA– on ‘‘Bladder Cancer: Developing Drugs for the adjuvant treatment of renal cell 2020–D–1496 for ‘‘Renal Cell and Biologics for Adjuvant Treatment.’’ carcinoma. The draft guidance includes Carcinoma: Developing Drugs and It does not establish any rights for any recommendations regarding eligibility Biologics for Adjuvant Treatment.’’ person and is not binding on FDA or the criteria, choice of comparator, followup Received comments will be placed in public. You can use an alternative imaging assessments, determination of the docket and, except for those approach if it satisfies the requirements disease recurrence, analyses of disease- submitted as ‘‘Confidential of the applicable statutes and free survival, and interpretation of trial Submissions,’’ publicly viewable at regulations. results. This draft guidance is intended https://www.regulations.gov or at the to facilitate the development of drugs II. Paperwork Reduction Act of 1995 Dockets Management Staff between 9 for the adjuvant treatment of renal cell a.m. and 4 p.m., Monday through This draft guidance refers to carcinoma. Friday, 240–402–7500. previously approved collections of DATES: Submit either electronic or • Confidential Submissions—To information found in FDA regulations. written comments on the draft guidance submit a comment with confidential These collections of information are by December 1, 2020 to ensure that the information that you do not wish to be subject to review by the Office of Agency considers your comment on this made publicly available, submit your Management and Budget (OMB) under draft guidance before it begins work on comments only as a written/paper the Paperwork Reduction Act of 1995 the final version of the guidance. submission. You should submit two (44 U.S.C. 3501–3520). The collections ADDRESSES: You may submit comments copies total. One copy will include the of information in 21 CFR part 312 have on any guidance at any time as follows: information you claim to be confidential been approved under OMB control with a heading or cover note that states number 0910–0014; the collections of Electronic Submissions ‘‘THIS DOCUMENT CONTAINS information in 21 CFR part 314 have Submit electronic comments in the CONFIDENTIAL INFORMATION.’’ The been approved under OMB control following way: Agency will review this copy, including number 0910–0001; and the collections • Federal eRulemaking Portal: the claimed confidential information, in of information in 21 CFR part 601 have https://www.regulations.gov. Follow the its consideration of comments. The been approved under 0910–0338. instructions for submitting comments. second copy, which will have the

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claimed confidential information Silver Spring, MD 20993–0002, 240– collections of information in 21 CFR redacted/blacked out, will be available 402–7911. part 314 have been approved under for public viewing and posted on SUPPLEMENTARY INFORMATION: OMB control number 0910–0001; and https://www.regulations.gov. Submit the collections of information in 21 CFR both copies to the Dockets Management I. Background part 601 have been approved under Staff. If you do not wish your name and FDA is announcing the availability of 0910–0338. contact information to be made publicly a draft guidance for industry entitled III. Electronic Access available, you can provide this ‘‘Renal Cell Carcinoma: Developing information on the cover sheet and not Drugs and Biologics for Adjuvant Persons with access to the internet in the body of your comments and you Treatment.’’ This draft guidance may obtain the draft guidance at either must identify this information as provides recommendations to sponsors https://www.fda.gov/drugs/guidance- ‘‘confidential.’’ Any information marked regarding the development of drugs compliance-regulatory-information/ as ‘‘confidential’’ will not be disclosed regulated by CDER and CBER for the guidances-drugs, https://www.fda.gov/ except in accordance with 21 CFR 10.20 adjuvant treatment of renal cell vaccines-blood-biologics/guidance- and other applicable disclosure law. For carcinoma. The draft guidance includes compliance-regulatory-information- more information about FDA’s posting recommendations regarding eligibility biologics/biologics-guidances, or https:// of comments to public dockets, see 80 criteria, choice of comparator, followup www.regulations.gov. imaging assessments, determination of FR 56469, September 18, 2015, or access Dated: September 28, 2020. disease recurrence, analyses of disease- the information at: https:// Lauren K. Roth, www.govinfo.gov/content/pkg/FR-2015- free survival (DFS), and interpretation of Associate Commissioner for Policy. 09-18/pdf/2015-23389.pdf. trial results. Although FDA may consider endpoints other than DFS for [FR Doc. 2020–21840 Filed 10–1–20; 8:45 am] Docket: For access to the docket to the adjuvant treatment of renal cell BILLING CODE 4164–01–P read background documents or the carcinoma, this guidance is focused on electronic and written/paper comments clinical trials with DFS as the primary received, go to https:// efficacy endpoint. DEPARTMENT OF HEALTH AND www.regulations.gov and insert the Adjuvant renal cell carcinoma clinical HUMAN SERVICES docket number, found in brackets in the trials are an active area of research. heading of this document, into the There is significant variability in the Health Resources and Services ‘‘Search’’ box and follow the prompts design, conduct, and analysis of these Administration and/or go to the Dockets Management trials, including the eligibility criteria, Notice of Class Deviation From Staff, 5630 Fishers Lane, Rm. 1061, radiological disease assessments, the Competition Requirements for HRSA– Rockville, MD 20852, 240–402–7500. definition of disease recurrence, and the 15–021: Quality Improvement Capacity You may submit comments on any date used to define the DFS endpoint in for Impact Project guidance at any time (see 21 CFR these trials. Consistency in these aspects 10.115(g)(5)). within and across trials may facilitate AGENCY: Health Resources and Services Submit written requests for single interpretation of trial results. These Administration (HRSA), Department of copies of the draft guidance to the issues were discussed at an FDA- Health and Human Services. Division of Drug Information, Center for National Cancer Institute public ACTION: Notice. Drug Evaluation and Research, Food workshop held on November 28, 2017. This draft guidance provides and Drug Administration, 10001 New SUMMARY: HRSA is providing recommendations on these issues to Hampshire Ave., Hillandale Building, supplemental funding for one year to facilitate adjuvant renal cell carcinoma 4th Floor, Silver Spring, MD 20993– the current recipients of HRSA–15–021, 0002 or to the Office of Communication, clinical trials. This draft guidance is being issued Quality Improvement Capacity for Outreach and Development, Center for Impact Project. Biologics Evaluation and Research, consistent with FDA’s good guidance Food and Drug Administration, 10903 practices regulation (21 CFR 10.115). FOR FURTHER INFORMATION CONTACT: New Hampshire Ave., Bldg. 71, Rm. The draft guidance, when finalized, will Austin Demby, Ph.D., MPH, Acting 3128, Silver Spring, MD 20993–0002. represent the current thinking of FDA Director, Send one self-addressed adhesive label on ‘‘Renal Cell Carcinoma: Developing Office of Global Health, Office of the to assist that office in processing your Drugs and Biologics for Adjuvant Administrator, HRSA, 5600 Fishers requests. The draft guidance may also be Treatment.’’ It does not establish any Lane, 09N09, Rockville, MD 20857, obtained by mail by calling the Center rights for any person and is not binding Phone: (301) 443–0581, Email: ademby@ for Biologics Evaluation and Research at on FDA or the public. You can use an hrsa.gov. 1–800–835–4709 or 240–402–8010. See alternative approach if it satisfies the SUPPLEMENTARY INFORMATION: requirements of the applicable statutes the SUPPLEMENTARY INFORMATION section Recipients of the Award: The Regents and regulations. for electronic access to the draft of the University of California San guidance document. II. Paperwork Reduction Act of 1995 Francisco (UCSF–U1NHA31422) and FOR FURTHER INFORMATION CONTACT: Julia This draft guidance refers to the Trustees of Columbia University in Beaver, Center for Drug Evaluation and previously approved FDA collections of the City of New York (ICAP– Research (CDER), Food and Drug information. These collections of U1NHA28555). Administration, 10903 New Hampshire information are subject to review by the Amount of Award: HRSA has Ave., Bldg. 22, Rm. 2100, Silver Spring, Office of Management and Budget awarded two grants totaling $6 million MD 20993–0002, 240–402–0489 or (OMB) under the Paperwork Reduction noted in Table 1. Stephen Ripley, Center for Biologics Act of 1995 (44 U.S.C. 3501–3521). The Period of Supplemental Funding: Evaluation and Research (CBER), Food collections of information in 21 CFR September 30, 2020—September 29, and Drug Administration, 10903 New part 312 have been approved under 2021, Hampshire Ave., Bldg. 71, Rm. 7301, OMB control number 0910–0014; the CFDA Number: 93.266

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TABLE 1—RECIPIENTS AND AWARD AMOUNTS

Extension Grant number Award recipient name length Award amount

UCSF–U1NHA31422 ...... The Regents of the University of California San Fran- 1 Year $4,000,000 cisco. ICAP–U1NHA28555 ...... Trustees of Columbia University in the City of New 1 Year 2,000,000 York.

Justification: The purpose of these SUMMARY: In accordance with the the Committee on Energy and cooperative agreements is to save lives, Federal Advisory Committee Act, HHS Commerce of the House of prevent HIV infections, and accelerate is hereby giving notice that the Council Representatives. Additionally, COGME progress toward achieving HIV/AIDS on Graduate Medical Education encourages entities providing GME to epidemic control in more than 50 (COGME) has been rechartered. The conduct activities to voluntarily achieve countries around the world. Recipients effective date of the renewed charter is the recommendations of COGME; and have completed certain project September 30, 2020. develops, publishes, and implements activities, but evaluation and transition FOR FURTHER INFORMATION CONTACT: performance measures, develops and to scale-up has been interrupted by the Shane Rogers, Designated Federal publishes guidelines for longitudinal COVID–19 pandemic and associated Official (DFO), Division of Medicine evaluations, and recommends country-specific restrictions. This notice and Dentistry, Bureau of Health appropriation levels for certain extends the current project period for Workforce, HRSA. Anyone requesting programs under Title VII of the PHS HRSA–15–021, Quality Improvement information may reach Mr. Rogers by Act. Capacity for Impact Project, by one year mail at 5600 Fishers Lane, 15N142, The renewed charter for COGME was until September 29, 2021, to ensure the Rockville, Maryland 20857; by phone at approved on September 30, 2020, which orderly conclusion of these projects 301–443–5260; or by email at SRogers@ will also stand as the filing date. while facilitating virtual stakeholder hrsa.gov Recharter of the COGME gives engagement during the COVID–19 authorization for the Council to operate SUPPLEMENTARY INFORMATION: COGME pandemic. until September 30, 2022. makes recommendations to the Authority: United States President’s Secretary of HHS (Secretary) and A copy of the COGME charter is Emergency Plan for AIDS Relief Congress on matters specified by section available on the COGME website at authorized by Public Law 108–25 (the 762 of Title VII of the Public Health https://www.hrsa.gov/sites/default/files/ United States Leadership Against HIV/ Service (PHS) Act. Issues addressed by hrsa/advisory-committees/graduate- AIDS, Tuberculosis and Malaria Act of COGME include (1) the supply and medical-edu/cogme-charter.pdf. A copy 2003) [22 U.S.C. 7601, et seq.]; and distribution of physicians in the United of the charter also can be obtained by Public Law 110–293 (the Tom Lantos States; (2) current and future shortages accessing the FACA database that is and Henry J. Hyde United States Global or excesses of physicians in medical and maintained by the Committee Leadership Against HIV/AIDS, surgical specialties and subspecialties; Management Secretariat under the Tuberculosis, and Malaria (3) issues relating to foreign medical General Services Administration. The Reauthorization Act of 2008), as school graduates; (4) appropriate federal website address for the FACA database reauthorized and amended by Public policies with respect to the matters is http://www.facadatabase.gov/. Law 113–56 (the President’s Emergency specified in (1), (2), and (3) above, Plan for AIDS Relief Stewardship and Maria G. Button, including policies concerning changes Director, Executive Secretariat. Oversight Act of 2013). See, e.g., 22 in the financing of undergraduate and [FR Doc. 2020–21773 Filed 10–1–20; 8:45 am] U.S.C. 7603 and 22 U.S.C. 2151b–2(b) graduate medical education (GME) BILLING CODE 4165–15–P (1)(B), 2151b–2(c)(1), and 2151b– programs and changes in the types of 2(d)(6)(G)(ii). medical education training in GME Thomas J. Engels, programs; (5) appropriate efforts to be DEPARTMENT OF HEALTH AND Administrator. carried out by hospitals, schools of HUMAN SERVICES medicine, schools of osteopathic [FR Doc. 2020–21778 Filed 10–1–20; 8:45 am] medicine, and accrediting bodies with Health Resources and Services BILLING CODE 4165–15–P respect to the matters specified in (1), Administration (2), and (3) above, including efforts for DEPARTMENT OF HEALTH AND changes in undergraduate and GME Notice That HRSA Will Not Fund HUMAN SERVICES programs; and (6) deficiencies in, and HRSA–20–083: Quality Improvement needs for improvements in, existing Solutions for Sustained Epidemic Health Resources and Services databases concerning the supply and Control Project Administration distribution of, and postgraduate training programs for, physicians in the AGENCY: Health Resources and Services Recharter for the Council on Graduate United States and steps that should be Administration (HRSA), Department of Medical Education taken to eliminate those deficiencies. Health and Human Services. Not later than September 30, 2023, and ACTION: Notice. AGENCY: Health Resources and Services not less than every 5 years thereafter, Administration (HRSA), Department of COGME shall submit a report with SUMMARY: HRSA has decided not to Health and Human Services (HHS). recommendations to the Secretary, and provide funding for HRSA–20–083 to the Committee on Health, Education, Quality Improvement Solutions for ACTION: Notice of recharter. Labor, and Pensions of the Senate and Sustained Epidemic Control Project,

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supported by the President’s Emergency Name of Committee: National Institute of National Institute of Allergy and Infectious Plan for AIDS Relief (PEPFAR). Child Health and Human Development Diseases, National Institutes of Health, 5601 Special Emphasis Panel; Genomic Predictors Fishers Lane, Room 3G42B, Bethesda, MD FOR FURTHER INFORMATION CONTACT: of Pregnancy Loss. 20892–9834, (240) 669–5070, rosenthalla@ Austin Demby, Ph.D., MPH, Acting Date: November 20, 2020. niaid.nih.gov. Director, Office of Global Health, Office Time: 10:00 a.m. to 5:00 p.m. (Catalogue of Federal Domestic Assistance of the Administrator, HRSA, 5600 Agenda: To review and evaluate grant Program Nos. 93.855, Allergy, Immunology, Fishers Lane, 09N09, Rockville, MD applications. and Transplantation Research; 93.856, 20857, Phone: (301) 443–0581, Email: Place: National Institute of Child Health Microbiology and Infectious Diseases [email protected]. and Human Development, 6710B Rockledge Research, National Institutes of Health, HHS) Drive, Bethesda, MD 20892 (Video Assisted SUPPLEMENTARY INFORMATION: Meeting). Dated: September 28, 2020. Justification: HRSA has decided not to Contact Person: Peter Zelazowski, Ph.D., Tyeshia M. Roberson, award funding under HRSA–20–083, Scientific Review Officer, Scientific Review Program Analyst, Office of Federal Advisory Branch, Eunice Kennedy Shriver National Quality Improvement Solutions for Committee Policy. Institute of Child Health and Human [FR Doc. 2020–21770 Filed 10–1–20; 8:45 am] Sustained Epidemic Control Project, Development, NIH, 6710B Rockledge Drive, which was published in Fiscal Year Bethesda, MD 20892–7510, 301–435–6902, BILLING CODE 4140–01–P 2020. HRSA will consider the needs of [email protected]. the government and the program, and (Catalogue of Federal Domestic Assistance DEPARTMENT OF HEALTH AND may publish an updated project Notice Program Nos. 93.865, Research for Mothers of Funding Opportunity for a new and Children, National Institutes of Health, HUMAN SERVICES HHS) competitive cycle in Fiscal Year 2021. National Institutes of Health Authority: United States PEPFAR Dated: September 29, 2020. authorized by Public Law 108–25 (the United Ronald J. Livingston, Jr., National Heart, Lung, and Blood States Leadership Against HIV/AIDS, Program Analyst, Office of Federal Advisory Institute; Notice of Closed Meeting. Tuberculosis and Malaria Act of 2003) [22 Committee Policy. U.S.C. 7601, et seq.]; and Public Law 110– [FR Doc. 2020–21863 Filed 10–1–20; 8:45 am] Pursuant to section 10(d) of the 293 (the Tom Lantos and Henry J. Hyde Federal Advisory Committee Act, as BILLING CODE 4140–01–P United States Global Leadership Against amended, notice is hereby given of the HIV/AIDS, Tuberculosis, and Malaria following meeting. Reauthorization Act of 2008), as reauthorized and amended by Public Law 113–56 (the DEPARTMENT OF HEALTH AND The meeting will be closed to the PEPFAR Stewardship and Oversight Act of HUMAN SERVICES public in accordance with the 2013). See, e.g., 22 U.S.C. 7603 and 22 U.S.C. provisions set forth in sections 151b–2(b)(1)(B), 2151b–2(c)(1), and 2151b– National Institutes of Health 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., 2(d)(6)(G)(ii). as amended. The grant applications and National Institute of Allergy and the discussions could disclose Thomas J. Engels, Infectious Diseases; Notice of Closed confidential trade secrets or commercial Administrator. Meeting property such as patentable material, [FR Doc. 2020–21779 Filed 10–1–20; 8:45 am] Pursuant to section 10(d) of the and personal information concerning BILLING CODE 4165–15–P Federal Advisory Committee Act, as individuals associated with the grant amended, notice is hereby given of the applications, the disclosure of which would constitute a clearly unwarranted DEPARTMENT OF HEALTH AND following meeting. invasion of personal privacy. HUMAN SERVICES The meeting will be closed to the public in accordance with the Name of Committee: Heart, Lung, and National Institutes of Health provisions set forth in sections Blood Initial Review Group. NHLBI 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Mentored Clinical and Basic Science Eunice Kennedy Shriver National as amended. The grant applications and Review Committee. Institute of Child Health & Human the discussions could disclose Date: –6, 2020. Development; Notice of Closed confidential trade secrets or commercial Time: 11:00 a.m. to 7:00 p.m. Meeting property such as patentable material, Agenda: To review and evaluate grant and personal information concerning applications. Pursuant to section 10(d) of the individuals associated with the grant Federal Advisory Committee Act, as Place: National Institutes of Health, applications, the disclosure of which Rockledge I, 6705 Rockledge Drive, amended, notice is hereby given of the would constitute a clearly unwarranted following meeting. Bethesda, MD 20814, (Virtual Meeting). invasion of personal privacy. Contact Person: Keith A Mintzer, The meeting will be closed to the Name of Committee: National Institute of Ph.D., Scientific Review Officer, Office public in accordance with the Allergy and Infectious Diseases Special of Scientific Review/DERA, National provisions set forth in sections Emphasis Panel; NIAID Investigator Initiated Heart, Lung, and Blood Institute, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Program Project Applications (P01). National Institutes of Health, 6705 as amended. The grant applications Date: , 2020. Rockledge Drive, Suite 207–G, Bethesda, and/or contract proposals and the Time: 12:00 p.m. to 3:00 p.m. MD 20892–7924, (301) 827–7949, discussions could disclose confidential Agenda: To review and evaluate grant [email protected]. trade secrets or commercial property applications. such as patentable material, and Place: National Institute of Allergy and (Catalogue of Federal Domestic Assistance Infectious Diseases, National Institutes of Program Nos. 93.233, National Center for personal information concerning Health, 5601 Fishers Lane, Room 3G42B, Sleep Disorders Research; 93.837, Heart and individuals associated with the grant Rockville, MD 20892 (Virtual Meeting). Vascular Diseases Research; 93.838, Lung applications, the disclosure of which Contact Person: Louis A. Rosenthal, Ph.D., Diseases Research; 93.839, Blood Diseases would constitute a clearly unwarranted Scientific Review Officer, Scientific Review and Resources Research, National Institutes invasion of personal privacy. Program, Division of Extramural Activities, of Health, HHS)

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Dated: September 29, 2020. Agenda: To review and evaluate grant ADDRESSES: Instructions regarding Ronald J. Livingston, Jr., applications. attending this meeting will be posted Place: National Institutes of Health, Program Analyst, Office of Federal Advisory online at: http://www.hhs.gov/nvpo/ Rockledge II, 6701 Rockledge Drive, Committee Policy. Bethesda, MD 20892, (Virtual Meeting). nvac/meetings/index.html at least one [FR Doc. 2020–21862 Filed 10–1–20; 8:45 am] Contact Person: John Harold Laity, Ph.D., week prior to the meeting. Pre- BILLING CODE 4140–01–P Scientific Review Officer, Center for registration is required for those who Scientific Review, 6701 Rockledge Drive, wish to attend the meeting or participate Bethesda, MD 20892, 301–402–8254, in public comment. Please register at DEPARTMENT OF HEALTH AND [email protected]. http://www.hhs.gov/nvpo/nvac/ HUMAN SERVICES Name of Committee: Center for Scientific meetings/index.html. Review Special Emphasis Panel PAR Panel: National Institutes of Health Research to Improve Native American FOR FURTHER INFORMATION CONTACT: Ann Health. Aikin, Acting Designated Federal Center for Scientific Review; Notice of Date: , 2020. Officer, at the Office of Infectious Closed Meetings Time: 11:00 a.m. to 5:00 p.m. Agenda: To review and evaluate grant Disease and HIV/AIDS Policy, U.S. Pursuant to section 10(d) of the applications. Department of Health and Human Federal Advisory Committee Act, as Place: National Institutes of Health, Services, Mary E. Switzer Building, amended, notice is hereby given of the Rockledge II, 6701 Rockledge Drive, Room L618, 330 C Street SW, following meetings. Bethesda, MD 20892, (Virtual Meeting). Washington, DC 20024. Email: nvac@ Contact Person: Pia Kristina Peltola, Ph.D., The meetings will be closed to the Scientific Review Officer, Center for hhs.gov. public in accordance with the Scientific Review, 6701 Rockledge Drive, SUPPLEMENTARY INFORMATION: Pursuant provisions set forth in sections Bethesda, MD 20892, 301–435–1266, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., [email protected]. to Section 2101 of the Public Health as amended. The grant applications and (Catalogue of Federal Domestic Assistance Service Act (42 U.S.C. 300aa–1), the the discussions could disclose Program Nos. 93.306, Comparative Medicine; Secretary of HHS was mandated to confidential trade secrets or commercial 93.333, Clinical Research, 93.306, 93.333, establish the National Vaccine Program property such as patentable material, 93.337, 93.393–93.396, 93.837–93.844, to achieve optimal prevention of human and personal information concerning 93.846–93.878, 93.892, 93.893, National infectious diseases through individuals associated with the grant Institutes of Health, HHS) immunization and to achieve optimal applications, the disclosure of which Dated: September 28, 2020. prevention against adverse reactions to would constitute a clearly unwarranted Tyeshia M. Roberson, vaccines. The NVAC was established to invasion of personal privacy. Program Analyst, Office of Federal Advisory provide advice and make Committee Policy. Name of Committee: Center for Scientific recommendations to the Director of the Review Special Emphasis Panel PAR Panel: [FR Doc. 2020–21771 Filed 10–1–20; 8:45 am] National Vaccine Program on matters Early and Late Stage Clinical Trials for the BILLING CODE 4140–01–P related to the Program’s responsibilities. Spectrum of Alzheimer’s Disease and Age- The Assistant Secretary for Health related Cognitive Decline. serves as Director of the National Date: October 27, 2020. DEPARTMENT OF HEALTH AND Vaccine Program. Time: 10:00 a.m. to 3:00 p.m. HUMAN SERVICES Agenda: To review and evaluate grant During the October 2020 NVAC applications. Public Health Service meeting, the committee will discuss Place: National Institutes of Health, responses to a charge on COVID–19 Rockledge II, 6701 Rockledge Drive, Meeting of the National Vaccine vaccination and may vote on sending Bethesda, MD 20892, (Virtual Meeting). Advisory Committee Contact Person: Unja Hayes, Ph.D., these responses forward to the Director Scientific Review Officer, National Institutes AGENCY: Office of Infectious Disease and of the National Vaccine Program. Please of Health, Center for Scientific Review, 6701 HIV/AIDS Policy, Public Health Service, note that agenda items are subject to Rockledge Drive, Bethesda, MD 20892, 301– Office of the Assistant Secretary for change, as priorities dictate. Information 827–6830, [email protected]. Health, Office of the Secretary, on the final meeting agenda will be Name of Committee: Center for Scientific Department of Health and Human posted prior to the meeting on the Review Special Emphasis Panel Cardiac Services. NVAC website: http://www.hhs.gov/ Contractility, Hypertrophy, and Failure. nvpo/nvac/index.html. Date: October 29–30, 2020. ACTION: Notice. Members of the public will have the Time: 9:00 a.m. to 6:00 p.m. SUMMARY: As stipulated by the Federal Agenda: To review and evaluate grant opportunity to provide comment at the applications. Advisory Committee Act, the Department of Health and Human NVAC meeting during the public Place: National Institutes of Health, comment period designated on the Rockledge II, 6701 Rockledge Drive, Services (HHS) is hereby giving notice Bethesda, MD 20892, (Virtual Meeting). that the National Vaccine Advisory agenda. Public comments made during Contact Person: Abdelouahab Aitouche, Committee (NVAC) will hold a virtual the meeting will be limited to three Ph.D., Scientific Review Officer, Center for meeting. The meeting will be open to minutes per person to ensure time is Scientific Review, National Institutes of the public and public comment will be allotted for all those wishing to speak. Health, 6701 Rockledge Drive, Room 4222, heard during the meeting. Individuals are also welcome to submit MSC 7814 Bethesda, MD 20892, 301–435– DATES: written comments. Written comments 2365, [email protected]. The meeting will be held October 16, 2020. The confirmed should not exceed three pages in length. Name of Committee: Center for Scientific Individuals submitting written Review Special Emphasis Panel Member meeting times and agenda will be Conflict: Interdisciplinary Molecular posted on the NVAC website at http:// comments should email their comments Sciences and Training. www.hhs.gov/nvpo/nvac/meetings/ to [email protected] at least five business Date: October 30, 2020. index.html as soon as they become days prior to the meeting. Time: 9:00 a.m. to 5:00 p.m. available.

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Dated: September 23, 2020. Public Participation and Request for https://www.regulations.gov and can be Ann Aikin, Comments viewed by following that website’s Acting Designated Federal Official, Office of This notice relies on the authority of instructions. Additionally, if you go to the Assistant Secretary for Health. the Paperwork Reduction Act of 1995; the online docket and sign up for email [FR Doc. 2020–21803 Filed 10–1–20; 8:45 am] 44 U.S.C. chapter 35, as amended. An alerts, you will be notified when BILLING CODE 4150–44–P ICR is an application to OIRA seeking comments are posted. the approval, extension, or renewal of a We accept anonymous comments. All Coast Guard collection of information comments received will be posted (Collection). The ICR contains without change to https:// DEPARTMENT OF HOMELAND information describing the Collection’s www.regulations.gov and will include SECURITY purpose, the Collection’s likely burden any personal information you have on the affected public, an explanation of provided. For more about privacy and Coast Guard the necessity of the Collection, and submissions in response to this other important information describing document, see DHS’s eRulemaking [Docket No. USCG–2020–0617] the Collection. There is one ICR for each System of Records notice (85 FR 14226, Collection. , 2020). Information Collection Request to The Coast Guard invites comments on Office of Management and Budget; Information Collection Request whether this ICR should be granted OMB Control Number: 1625–0030 Title: Oil and Hazardous Materials based on the Collection being necessary Transfer Procedures. AGENCY: Coast Guard, DHS. for the proper performance of OMB Control Number: 1625–0030. Departmental functions. In particular, ACTION: Summary: Vessels with a capacity of Sixty-day notice requesting the Coast Guard would appreciate comments. 250 barrels or more of oil or hazardous comments addressing: (1) The practical materials must develop and maintain SUMMARY: In compliance with the utility of the Collection; (2) the accuracy transfer procedures. Transfer procedures Paperwork Reduction Act of 1995, the of the estimated burden of the provide basic safety information for U.S. Coast Guard intends to submit an Collection; (3) ways to enhance the operating transfer systems with the goal Information Collection Request (ICR) to quality, utility, and clarity of of pollution prevention. the Office of Management and Budget information subject to the Collection; Need: Title 46 U.S.C. 70034 (OMB), Office of Information and and (4) ways to minimize the burden of authorizes the Coast Guard to prescribe Regulatory Affairs (OIRA), requesting an the Collection on respondents, regulations related to the prevention of extension of its approval for the including the use of automated pollution. Title 33 CFR part 155 following collection of information: collection techniques or other forms of prescribes pollution prevention 1625–0030, Oil and Hazardous information technology. Consistent with regulations including those related to Materials Transfer Procedures; without the requirements of Executive Order transfer procedures. change. 13771, Reducing Regulation and Forms: Not applicable. Our ICR describes the information we Controlling Regulatory Costs, and Respondents: Operators of certain seek to collect from the public. Before Executive Order 13777, Enforcing the vessels. submitting this ICR to OIRA, the Coast Regulatory Reform Agenda, the Coast Frequency: On occasion. Guard is inviting comments as Guard is also requesting comments on Hour Burden Estimate: The estimated described below. the extent to which this request for burden has increased from 149 hours to information could be modified to reduce 151 hours a year due to an increase in DATES: Comments must reach the Coast the burden on respondents. the estimated annual number of Guard on or before December 1, 2020. In response to your comments, we responses. ADDRESSES: You may submit comments may revise this ICR or decide not to seek Authority: The Paperwork Reduction identified by Coast Guard docket an extension of approval for the Act of 1995; 44 U.S.C. chapter 35, as number [USCG–2020–0617] to the Coast Collection. We will consider all amended. comments and material received during Guard using the Federal eRulemaking Dated: September 29, 2020. Portal at https://www.regulations.gov. the comment period. Kathleen Claffie, See the ‘‘Public participation and We encourage you to respond to this request for comments’’ portion of the request by submitting comments and Chief, Office of Privacy Management, U.S. Coast Guard. SUPPLEMENTARY INFORMATION section for related materials. Comments must further instructions on submitting contain the OMB Control Number of the [FR Doc. 2020–21864 Filed 10–1–20; 8:45 am] comments. ICR and the docket number of this BILLING CODE 9110–04–P A copy of the ICR is available through request, [USCG–2020–0617], and must be received by December 1, 2020. the docket on the internet at https:// DEPARTMENT OF HOMELAND www.regulations.gov. Additionally, Submitting Comments SECURITY copies are available from: Commandant We encourage you to submit (CG–6P), Attn: Paperwork Reduction Coast Guard Act Manager, U.S. Coast Guard, 2703 comments through the Federal Martin Luther King Jr. Ave. SE, Stop eRulemaking Portal at https:// [Docket No. USCG–2020–0619] 7710, Washington, DC 20593–7710. www.regulations.gov. If your material cannot be submitted using https:// Information Collection Request to FOR FURTHER INFORMATION CONTACT: A.L. www.regulations.gov, contact the person Office of Management and Budget; Craig, Office of Privacy Management, in the FOR FURTHER INFORMATION OMB Control Number: 1625–0057 telephone 202–475–3528, or fax 202– CONTACT section of this document for 372–8405, for questions on these AGENCY: Coast Guard, DHS. alternate instructions. Documents documents. ACTION: Sixty-day notice requesting mentioned in this notice, and all public comments. SUPPLEMENTARY INFORMATION: comments, are in our online docket at

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SUMMARY: In compliance with the quality, utility, and clarity of passenger vessels (under 100 gross tons) Paperwork Reduction Act of 1995, the information subject to the Collection; that carry more than 6 passengers. U.S. Coast Guard intends to submit an and (4) ways to minimize the burden of Need: Under the authority of 46 Information Collection Request (ICR) to the Collection on respondents, U.S.C. 3305 and 3306, the Coast Guard the Office of Management and Budget including the use of automated prescribed regulations for the design, (OMB), Office of Information and collection techniques or other forms of construction, alteration, repair and Regulatory Affairs (OIRA), requesting an information technology. Consistent with operation of small passenger vessels to extension of its approval for the the requirements of Executive Order secure the safety of individuals and following collection of information: 13771, Reducing Regulation and property on board. The Coast Guard 1625–0057, Small Passenger Vessels; Controlling Regulatory Costs, and uses the information in this collection to without change. Our ICR describes the Executive Order 13777, Enforcing the ensure compliance with the information we seek to collect from the Regulatory Reform Agenda, the Coast requirements. public. Before submitting this ICR to Guard is also requesting comments on Forms: OIRA, the Coast Guard is inviting the extent to which this request for • CG–841, Certificate of Inspection comments as described below. information could be modified to reduce • CG–854, Temporary Certificate of DATES: Comments must reach the Coast the burden on respondents. Inspection Guard on or before December 1, 2020. In response to your comments, we • CG–948, Permit to Proceed to Another ADDRESSES: You may submit comments may revise this ICR or decide not to seek Port for Repairs identified by Coast Guard docket an extension of approval for the • CG–949, Permit to Carry Excursion number [USCG–2020–0619] to the Coast Collection. We will consider all Party Guard using the Federal eRulemaking comments and material received during • CG–5256, U.S. Coast Guard Inspected Portal at https://www.regulations.gov. the comment period. Small Passenger Vessel [sticker] See the ‘‘Public participation and We encourage you to respond to this Respondents: Owners and operators request for comments’’ portion of the request by submitting comments and of small passenger vessels. SUPPLEMENTARY INFORMATION section for related materials. Comments must Frequency: On occasion. further instructions on submitting contain the OMB Control Number of the Hour Burden Estimate: The estimated comments. ICR and the docket number of this burden has increased from 397,124 A copy of the ICR is available through request, [USCG–2020–0619], and must hours to 404,595 hours a year due to an the docket on the internet at https:// be received by December 1, 2020. increase in the estimated annual www.regulations.gov. Additionally, Submitting Comments number of respondents. copies are available from: Commandant Authority: The Paperwork Reduction (CG–6P), ATTN: Paperwork Reduction We encourage you to submit comments through the Federal Act of 1995; 44 U.S.C. chapter 35, as Act Manager, U.S. Coast Guard, 2703 amended. Martin Luther King Jr. Ave. SE, Stop eRulemaking Portal at https:// Dated: September 29, 2020. 7710, Washington, DC 20593–7710. www.regulations.gov. If your material cannot be submitted using https:// Kathleen Claffie, FOR FURTHER INFORMATION CONTACT: A.L. www.regulations.gov, contact the person Craig, Office of Privacy Management, Chief, Office of Privacy Management, U.S. in the FOR FURTHER INFORMATION Coast Guard. telephone 202–475–3528, or fax 202– CONTACT section of this document for 372–8405, for questions on these [FR Doc. 2020–21867 Filed 10–1–20; 8:45 am] alternate instructions. Documents documents. BILLING CODE 9110–04–P mentioned in this notice, and all public SUPPLEMENTARY INFORMATION: comments, are in our online docket at Public Participation and Request for https://www.regulations.gov and can be DEPARTMENT OF HOMELAND Comments viewed by following that website’s SECURITY instructions. Additionally, if you go to This notice relies on the authority of the online docket and sign up for email Coast Guard the Paperwork Reduction Act of 1995; alerts, you will be notified when [Docket No. USCG–2020–0616] 44 U.S.C. chapter 35, as amended. An comments are posted. ICR is an application to OIRA seeking We accept anonymous comments. All Information Collection Request to the approval, extension, or renewal of a comments received will be posted Office of Management and Budget; Coast Guard collection of information without change to https:// OMB Control Number: 1625–0017 (Collection). The ICR contains www.regulations.gov and will include information describing the Collection’s any personal information you have AGENCY: Coast Guard, DHS. purpose, the Collection’s likely burden provided. For more about privacy and ACTION: Sixty-day notice requesting on the affected public, an explanation of submissions in response to this comments. the necessity of the Collection, and document, see DHS’s eRulemaking other important information describing System of Records notice (85 FR 14226, SUMMARY: In compliance with the the Collection. There is one ICR for each March 11, 2020). Paperwork Reduction Act of 1995, the Collection. U.S. Coast Guard intends to submit an The Coast Guard invites comments on Information Collection Request Information Collection Request (ICR) to whether this ICR should be granted Title: Small Passenger Vessels—Title the Office of Management and Budget based on the Collection being necessary 46 CFR Subchapters K and T. (OMB), Office of Information and for the proper performance of OMB Control Number: 1625–0057. Regulatory Affairs (OIRA), requesting an Departmental functions. In particular, Summary: The information extension of its approval for the the Coast Guard would appreciate requirements are necessary for the following collection of information: comments addressing: (1) The practical proper administration and enforcement 1625–0017, Various International utility of the Collection; (2) the accuracy of the program on safety of commercial Agreement Safety Certificates and of the estimated burden of the vessels as it affects small passenger Documents; without change. Our ICR Collection; (3) ways to enhance the vessels. The requirements affect small describes the information we seek to

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collect from the public. Before Controlling Regulatory Costs, and passengers that engage in international submitting this ICR to OIRA, the Coast Executive Order 13777, Enforcing the voyages. SOLAS and title 46 CFR 2.01– Guard is inviting comments as Regulatory Reform Agenda, the Coast 25 list certificates and documents that described below. Guard is also requesting comments on may be issued to vessels. DATES: Comments must reach the Coast the extent to which this request for Forms: Guard on or before December 1, 2020. information could be modified to reduce • ADDRESSES: You may submit comments the burden on respondents. CG–967, Exemption Certificate identified by Coast Guard docket In response to your comments, we • CG–968, Passenger Ship Safety number [USCG–2020–0616] to the Coast may revise this ICR or decide not to seek Certificate Guard using the Federal eRulemaking an extension of approval for the • CG–968A, Record of Equipment for Portal at https://www.regulations.gov. Collection. We will consider all the Passenger Ship Safety Certificate See the ‘‘Public participation and comments and material received during request for comments’’ portion of the the comment period. (Form P) SUPPLEMENTARY INFORMATION section for We encourage you to respond to this • CG–969, Notice of Completion of further instructions on submitting request by submitting comments and Examination for Safety Certificate comments. related materials. Comments must • contain the OMB Control Number of the CG–3347, Cargo Ship Safety A copy of the ICR is available through Equipment Certificate the docket on the internet at https:// ICR and the docket number of this • www.regulations.gov. Additionally, request, [USCG–2020–0616], and must CG–3347B, Record of Equipment for copies are available from: be received by December 1, 2020. the Cargo Ship Safety Equipment Certificate (Form E) COMMANDANT (CG–6P), ATTN: Submitting Comments PAPERWORK REDUCTION ACT • CG–4359, Cargo Ship Safety We encourage you to submit MANAGER, U.S. COAST GUARD, 2703 Construction Certificate MARTIN LUTHER KING JR. AVE. SE, comments through the Federal • CG–4360, International Ship Security STOP 7710, WASHINGTON, DC 20593– eRulemaking Portal at https:// Certificate 7710. www.regulations.gov. If your material cannot be submitted using https:// • FOR FURTHER INFORMATION CONTACT: A.L. CG–4361, Interim International Ship www.regulations.gov, contact the person Craig, Office of Privacy Management, Security Certificate in the FOR FURTHER INFORMATION telephone 202–475–3528, or fax 202– • CG–5643, Safety Management CONTACT section of this document for 372–8405, for questions on these alternate instructions. Documents Certificate documents. mentioned in this notice, and all public • CG–5679, High-Speed Craft Safety SUPPLEMENTARY INFORMATION: comments, are in our online docket at Certificate Public Participation and Request for https://www.regulations.gov and can be • CG–5679A, Record of Equipment for Comments viewed by following that website’s High-Speed Craft Safety Certificate instructions. Additionally, if you go to • This notice relies on the authority of the online docket and sign up for email CG–5680, Permit to Operate High- the Paperwork Reduction Act of 1995; alerts, you will be notified when Speed Craft 44 U.S.C. chapter 35, as amended. An comments are posted. • CG–6038, Continuous Synopsis ICR is an application to OIRA seeking We accept anonymous comments. All Record (CSR) Document Number the approval, extension, or renewal of a comments received will be posted lll for the ship with IMO Number: Coast Guard collection of information without change to https:// lll (Collection). The ICR contains www.regulations.gov and will include • CG–6038A, Amendments to the information describing the Collection’s any personal information you have Continuous Synopsis Record (CSR) purpose, the Collection’s likely burden provided. For more about privacy and Document Number lll for the ship on the affected public, an explanation of submissions in response to this with IMO Number: lll the necessity of the Collection, and document, see DHS’s eRulemaking other important information describing System of Records notice (85 FR 14226, • CG–16170, Polar Ship Certificate the Collection. There is one ICR for each March 11, 2020). • CG–16170A, Record of Equipment for Collection. The Coast Guard invites comments on Information Collection Request the Polar Ship Certificate whether this ICR should be granted Title: Various International Respondents: Owners and operators based on the Collection being necessary Agreement Safety Certificates and of SOLAS vessels. for the proper performance of Documents. Frequency: On occasion. Departmental functions. In particular, OMB Control Number: 1625–0017. Hour Burden Estimate: The estimated the Coast Guard would appreciate Summary: These Coast Guard-issued burden has decreased from 90 hours to comments addressing: (1) The practical forms are used as evidence of utility of the Collection; (2) the accuracy compliance with the International 69 hours a year due to a decrease in the of the estimated burden of the Convention for Safety of Life at Sea, estimated annual number of responses Collection; (3) ways to enhance the 1974 (SOLAS) by certain U.S. vessels on Authority: The Paperwork Reduction quality, utility, and clarity of international voyages. Without the Act of 1995; 44 U.S.C. chapter 35, as information subject to the Collection; proper certificates or documents, a U.S. amended. and (4) ways to minimize the burden of vessel could be detained in a foreign Dated: September 29, 2020. the Collection on respondents, port. including the use of automated Need: SOLAS applies to all Kathleen Claffie, collection techniques or other forms of mechanically propelled cargo vessels of Chief, Office of Privacy Management, U.S. information technology. Consistent with 500 or more gross tons (GT), and to all Coast Guard. the requirements of Executive Order mechanically propelled passenger [FR Doc. 2020–21866 Filed 10–1–20; 8:45 am] 13771, Reducing Regulation and vessels carrying more than 12 BILLING CODE 9110–04–P

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DEPARTMENT OF HOUSING AND (MAP) is designed to establish uniform (1) Whether the proposed collection URBAN DEVELOPMENT national standards for Federal Housing of information is necessary for the Administration (FHA) approved lenders proper performance of the functions of [Docket No. FR–7024–N–41; OMB Control to prepare, process and submit loan Number: 2502–0541] the agency, including whether the applications for FHA multifamily information will have practical utility; 30-Day Notice of Proposed Information mortgage insurance. The MAP Guide (2) The accuracy of the agency’s Collection: Lender Qualifications for provides—in one volume with estimate of the burden of the proposed Multifamily Accelerated Processing appendices—guidance for HUD staff, collection of information; (MAP) Guide (MAP Guide, 4430.G) lenders, third party consultants, (3) Ways to enhance the quality, borrowers, and other industry utility, and clarity of the information to AGENCY: Office of the Chief Information participants. Topics include mortgage be collected; and Officer, HUD. insurance program descriptions, (4) Ways to minimize the burden of ACTION: Notice. borrower and lender eligibility the collection of information on those requirements, application requirements, who are to respond; including through SUMMARY: HUD has submitted the underwriting standards for all technical the use of appropriate automated proposed information collection disciplines and construction loan collection techniques or the forms of requirement described below to the administration requirements. The MAP information technology, e.g., permitting Office of Management and Budget Guide applies only to FHA multifamily electronic submission of responses. (OMB) for review, in accordance with mortgage insurance programs. Except to (5) ways to minimize the burden of the Paperwork Reduction Act. The the extent lender monitoring or the collection of information on those purpose of this notice is to allow for an enforcement activities overlap, Section who are to respond, including the use additional 30 days of public comment. 232 and other programs administered by of automated collection techniques or DATES: Comments Due Date: November the Office of Healthcare Programs are other forms of information technology. 2, 2020. not addressed by the MAP Guide. HUD encourages interested parties to ADDRESSES: Interested persons are The Guide has been updated to reflect submit comment in response to these invited to submit comments regarding various organizational, policy and questions. processing changes implemented since this proposal. Written comments and C. Authority recommendations for the proposed the last edition was published in 2016. information collection should be sent Examples include electronic submission Section 3507 of the Paperwork within 30 days of publication of this of data in a standardized format, the Reduction Act of 1995, 44 U.S.C. notice to www.reginfo.gov/public/do/ consolidation of HUD Field Offices to Chapter 35. Start Printed Page 15501PRAMain. Find Regional Centers and Satellite Offices, Department Reports Management this particular information collection by workload sharing, and a ‘‘risk-based’’ Officer for the Office of the Chief selecting ‘‘Currently under 30-day underwriting approach. The goal of Information Officer, Colette Pollard, Review—Open for Public Comments’’ or MAP is to provide a consistent, having reviewed and approved this by using the search function. expedited mortgage insurance document, is delegating the authority to FOR FURTHER INFORMATION CONTACT: application process at each HUD electronically sign this document to Colette Pollard, Reports Management Multifamily Regional Center or Satellite submitter, Nacheshia Foxx, who is the Officer, QDAM, Department of Housing Office. All MAP eligible projects must Federal Register Liaison for HUD, for and Urban Development, 451 7th Street be submitted using MAP processing purposes of publication in the Federal SW, Washington, DC 20410; email unless a waiver is granted to process Register. Colette Pollard at Colette.Pollard@ under Traditional Application Dated: September 29, 2020. hud.gov or telephone 202–402–3400. Processing (TAP). Such waiver approval Nacheshia Foxx, authority is retained by HUD Persons with hearing or speech Federal Liaison for the Department of Housing impairments may access this number Headquarters’ Director of Multifamily and Urban Development. through TTY by calling the toll-free Production. Additionally, two new chapters were added to this edition of [FR Doc. 2020–21814 Filed 10–1–20; 8:45 am] Federal Relay Service at (800) 877–8339. BILLING CODE 4210–67–P This is not a toll-free number. Copies of the Guide: The ‘‘Water and Energy available documents submitted to OMB Conservation’’ chapter and the ‘‘Closing may be obtained from Ms. Pollard. Guide’’. Respondents (i.e. affected public): DEPARTMENT OF THE INTERIOR SUPPLEMENTARY INFORMATION: This FHA Approved MAP Lenders notice informs the public that HUD is environmental services agencies, green Fish and Wildlife Service seeking approval from OMB for the building services companies, loan [Docket No. FWS–R8–ES–2020–0115; information collection described in closing attorneys, etc. FXES11120800000–201–FF08ENVS00] Section A. Estimated Number of Respondents: A. Overview of Information Collection 86. Draft Environmental Assessment and Estimated Number of Responses: 344. Proposed Habitat Conservation Plan Title of Information Collection: Frequency of Response: 1. for the Spring Mountain Raceway Multifamily Accelerated Processing Average Hours per Response: 30 Northern Expansion, Pahrump, Nye (MAP) Guide. hours [121 hours/4 = 30.25 hours]. County, Nevada OMB Approval Number: 2502–0541. Total Estimated Burden: 10,406. OMB Expiration Date: December 31, AGENCY: Fish and Wildlife Service, 2020. B. Solicitation of Public Comment Interior. Type of Request: Revision. This notice is soliciting comments ACTION: Notice of availability; request Form Number: Guidebook 4430.G. from members of the public and affected for comment. Description of the need for the parties concerning the collection of information and proposed use: information described in Section A on SUMMARY: We, the U.S. Fish and Multifamily Accelerated Processing the following: Wildlife Service, announce the

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availability of a draft environmental permit (ITP) under section 10 (a)(1)(B) listed under the ESA as threatened assessment (EA) under the National of the Endangered Species Act, as (, 1990, 55 FR 12178). Environmental Policy Act (NEPA). We amended (ESA; 16 U.S.C. 1531 et seq.). also announce receipt of an application The application for the permit requires Habitat Conservation Plan Area for an incidental take permit (ITP) under the preparation of a habitat conservation The geographic scope of the draft HCP the Endangered Species Act (ESA), and plan (HCP) with measures to avoid, area comprises 227 acres of private land of a draft habitat conservation plan minimize, and mitigate the impacts of in the town of Pahrump, in Nye County, (HCP). Spring Mountain Raceway, LLC incidental take of endangered or Nevada, where the development will has applied for an ITP under the ESA threatened species to the maximum occur. for an expansion project in Pahrump, extent practicable. The applicant Nye County, Nevada. The ITP would prepared the draft Spring Mountain Covered Activities authorize the take of one species Raceway Northern Expansion HCP incidental to the project. We invite the pursuant to section 10(a)(1)(B) of the The proposed section 10(a) ITP would public and local, State, Tribal, and ESA. The purpose of the draft EA is to allow incidental take of one covered Federal agencies to comment on the assess the effects of issuing the ITP and species from covered activities in the draft EA, HCP, and permit application. implementing the draft HCP on the proposed HCP area. The applicant is Before issuing the requested ITP, we natural and human environment. requesting incidental take authorization will take into consideration any for covered activities, including We invite the public and local, State, construction, operation, and information we receive during the Tribal, and Federal agencies to comment public comment period. maintenance of the facility within the on the draft EA, HCP, and permit 227 ac owned by the applicant. DATES: We must receive your written application. Before issuing the comments on or before November 2, requested ITP, we will take into Construction would begin after 2020. consideration any information we installation of a desert tortoise exclusion fence and removal of all tortoises. ADDRESSES: receive during the public comment period. Construction would entail clearing of Obtaining Documents: You may vegetation; grading and leveling of soil obtain copies of the draft EA, proposed Background to achieve desired topography for the HCP, and permit application in Docket Section 9 of the ESA (16 U.S.C. 1538) track, facilities, and flood management No. FWS–R8–ES–2020–0115 at http:// features; digging and trenching for www.regulations.gov. prohibits the taking of fish and wildlife species listed as endangered under utilities; placement of the new track Submitting Comments: To submit base and surface; construction of the written comments, please use one of the section 4 of the ESA; by regulation, take of certain species listed as threatened is flood management features; following methods, and note to which construction of the buildings, parking document(s) your comments pertain. also prohibited. (16 U.S.C. 1533(d); 50 • CFR 17.31). Regulations governing areas, and paddock; and installation of Internet: http:// the necessary underground power, www.regulations.gov; search for and permits for endangered and threatened species are at 50 CFR 17.22 and 17.32. phone, sewer, and water pipelines to the submit comments in Docket No. FWS– buildings. These activities would R8–ES–2020–0115. For more about the Federal habitat • conservation plan (HCP) program, go to remove approximately half of the native U.S. Mail: Public Comments vegetation in the area based on the Processing, Attn: Docket No. FWS–R8– http://www.fws.gov/endangered/esa- library/pdf/hcp.pdf. preliminary design, but may remove ES–2020–0115; U.S. Fish and Wildlife more based on final design and future Service Headquarters, MS: PRB/3W; National Environmental Policy Act reconfiguration of the facility. Operation 5275 Leesburg Pike; Falls Church, VA Compliance and maintenance of the expansion 22041–3803. The proposed permit issuance triggers would entail use of the facility in a For more information, see Public the need for compliance with the NEPA. manner consistent with the existing Comments and Public Availability of The draft EA was prepared to analyze interconnected facility, all of which will Comments under SUPPLEMENTARY the impacts of issuing an ITP based on occur on private property within the INFORMATION. the draft HCP and to inform the public desert tortoise exclusion fencing. FOR FURTHER INFORMATION CONTACT: Glen of the proposed action, any alternatives, Covered activities also include W. Knowles, Field Supervisor, Southern and associated impacts, and to disclose construction, operation, and Nevada Fish and Wildlife Office, by any irreversible commitments of maintenance equipment and other phone at 702–515–5244, or via the resources. vehicle travel on existing access roads to Federal Information Relay Service at the facility. Proposed Action Alternative 800–877–8339. The applicant is proposing to SUPPLEMENTARY INFORMATION: We, the Under the Proposed Action implement best management practices, U.S Fish and Wildlife Service (Service), Alternative, the Service would issue an as well as general and species-specific announce the availability of a draft ITP to the applicant for a period of 5 measures to avoid and minimize the Environmental assessment (draft EA) years for certain covered activities impacts of the take from the covered prepared pursuant to the National (described below) to construct and activities, including worker Environmental Policy Act of 1969, as operate an extension of the existing environmental and desert tortoise amended (NEPA; 42 U.S.C. 4321 et Spring Mountain Raceway. The awareness training, installation and seq.), and its implementing regulations extension includes 2.3 miles of maintenance of desert tortoise exclusion in the Code of Federal Regulations additional track, flood management fencing; tortoise removal, translocation, (CFR) at 40 CFR 1506.6. We also features, classrooms, parking area, and a and monitoring; noxious weed announce receipt of an application paved paddock area for preparing cars. management; dust control; and support submitted by Spring Mountain The applicant has requested an ITP for of conservation and management Raceway, LLC of Pahrump, Nevada one covered species, the Mojave desert measures to offset the loss of occupied (applicant), for a 5-year incidental take tortoise (Gopherus agassizii), which is habitat.

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Covered Species confirms that issuance of the ITP will ADDRESSES: Megon Noble, NAGPRA The applicant has requested an ITP not jeopardize the continued existence Project Manager, University of for one federally listed threatened of any endangered or threatened California, Davis, 412 Mrak Hall, One species: species, or destroy or adversely modify Shields Avenue, Davis, CA 95616, • Mojave desert tortoise (Gopherus critical habitat, we will issue a permit telephone (530) 752–8501, email agassizii). to the applicant for the incidental take [email protected]. of the covered species. FOR FURTHER INFORMATION CONTACT: No Action Alternative Authority Megon Noble, NAGPRA Project Under the No-Action Alternative, the Manager, University of California, Service would not issue an ITP to the We provide this notice under section Davis, 412 Mrak Hall, One Shields applicant, and the draft HCP would not 10(c) of the ESA (16 U.S.C. 1539(c)) and Avenue, Davis, CA 95616, telephone be implemented. Under this alternative, its implementing regulations (50 CFR (530) 752–8501, email mnoble@ the applicant may choose not to 17.32), and NEPA (42 U.S.C. 4321 et ucdavis.edu. construct the facility or would do so in seq.) and NEPA implementing SUPPLEMENTARY INFORMATION: Notice is a manner presumed not to result in the regulations (40 CFR 1506.6). take of ESA-listed species. here given in accordance with the Glen Knowles, Native American Graves Protection and Public Comments Field Supervisor, Southern Nevada Fish and Repatriation Act (NAGPRA), 25 U.S.C. We request data, comments, new Wildlife Office. 3003, of the correction of an inventory information, or suggestions from the [FR Doc. 2020–21769 Filed 10–1–20; 8:45 am] of human remains and associated public, other concerned governmental BILLING CODE 4333–15–P funerary objects under the control of the agencies, the scientific community, University of California, Davis, Davis, Tribes, industry, or any other interested CA. The human remains and associated party on this notice, the draft EA and DEPARTMENT OF THE INTERIOR funerary objects were removed from the draft HCP. If you wish to comment Lake County, CA. National Park Service on the permit application, plan, and This notice is published as part of the associated documents, you may submit [NPS–WASO–NAGPRA–NPS0030810; National Park Service’s administrative comments by any one of the methods in PPWOCRADN0–PCU00RP14.R50000] responsibilities under NAGPRA, 25 ADDRESSES. U.S.C. 3003(d)(3). The determinations in Notice of Inventory Completion: this notice are the sole responsibility of Public Availability of Comments Department of Anthropology Museum the museum, institution, or Federal Any comments we receive will at the University of California, Davis, agency that has control of the Native become part of the decision record Davis, CA: Correction American human remains and associated with this action. Before associated funerary objects. The including your address, phone number, AGENCY: National Park Service, Interior. National Park Service is not responsible email address, or other personal ACTION: Notice; correction. for the determinations in this notice. identifying information in your This notice corrects the minimum SUMMARY: comment, you should be aware that The University of California, number of individuals and the number your entire comment—including your Davis (UC Davis) has corrected an of associated funerary objects published personal identifying information—may inventory of human remains and in a Notice of Inventory Completion in be made publicly available at any time. associated funerary objects published in the Federal Register (74 FR 32182– While you can request in your comment a Notice of Inventory Completion in the 32183, , 2009). Additional human that we withhold your personal Federal Register on July 7, 2009. This remains were newly identified after identifying information from public notice corrects the minimum number of review of faunal collections. In addition, review, we cannot guarantee that we individuals and the number of human remains from CA–LAK–152 will be able to do so. All submissions associated funerary objects. Lineal previously identified as culturally from organizations or businesses, and descendants or representatives of any unidentifiable were re-evaluated in from individuals identifying themselves Indian Tribe or Native Hawaiian consultation with Indian Tribes and as representatives or officials of organization not identified in this notice were determined to be culturally organizations or businesses, will be that wish to request transfer of control affiliated. Based on both consultation made available for public disclosure in of these human remains and associated and a review of the original field their entirety. funerary objects should submit a written records, additional associated funerary request to UC Davis. If no additional objects were identified. Transfer of Next Steps requestors come forward, transfer of control of the items in this correction Issuance of an incidental take permit control of the human remains and notice has not occurred. is a Federal proposed action subject to associated funerary objects to the lineal compliance with NEPA and section 7 of descendants, Indian Tribes, or Native Correction the ESA. We will evaluate the Hawaiian organizations stated in this In the Federal Register of July 7, application, associated documents, and notice may proceed. 2009, in FR Doc. E9–16017, on page any public comments we receive as part DATES: Lineal descendants or 32182, make the following corrections: of our NEPA compliance process to representatives of any Indian Tribe or 1. On page 32182, in the third determine whether the application Native Hawaiian organization not column, first paragraph, correct the first meets the requirements of section 10(a) identified in this notice that wish to sentence to read: of the ESA. If we determine that those request transfer of control of these In 1971–1973, human remains requirements are met, we will conduct human remains and associated funerary representing a minimum of three an intra-Service consultation under objects should submit a written request individuals were removed from CA– section 7 of the ESA for the Federal with information in support of the LAK–152, Lake County, CA, by the action for the potential issuance of an request to UC Davis at the address in University of California, Davis ITP. If the intra-Service consultation this notice by November 2, 2020. archeological field school.

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2. On page 32182, in the third Additional Requestors and Disposition descendants or representatives of any column, first paragraph, correct the fifth Lineal descendants or representatives Indian Tribe or Native Hawaiian sentence to read: of any Indian Tribe or Native Hawaiian organization not identified in this notice The 208 associated funerary objects organization not identified in this notice that wish to request transfer of control are one obsidian biface, seven lots of that wish to request transfer of control of these human remains and associated non-human faunal bone, four lots of of these human remains and associated funerary objects should submit a written charcoal, 119 clamshell disc beads, two funerary objects should submit a written request to the Bureau of Land lots of debitage, seven lots of burned request with information in support of Management, New Mexico State Office. pine nut fragments, two firecracked the request to Megon Noble, NAGPRA If no additional requestors come groundstone fragments, 57 Olivella shell Project Manager, University of forward, transfer of control of the human remains and associated funerary beads, seven tabular stones, and two lots California, Davis, 412 Mrak Hall, One objects to the lineal descendants, Indian of obsidian flakes. (104 clamshell disc Shields Avenue, Davis, CA 95616, Tribes, or Native Hawaiian beads are currently missing from the telephone (530)752–8501 email organizations stated in this notice may collection). [email protected], by November 2, proceed. 3. On page 32182, in the third 2020. After that date, if no additional requestors have come forward, transfer DATES: Lineal descendants or column, correct the second paragraph to representatives of any Indian Tribe or read: of control of the human remains and associated funerary objects to the Cachil Native Hawaiian organization not Based on burial context and site DeHe Band of Wintun Indians of the identified in this notice that wish to characteristics, the human remains Colusa Indian Community of the Colusa request transfer of control of these described above from Lake County are Rancheria, California; Kletsel Dehe human remains and associated funerary determined to be Native American. The Band of Wintun Indians (previously objects should submit a written request burials from the site are dated to listed as Cortina Indian Rancheria and with information in support of the approximately A.D. 1520–1770 (Phase 2 request to the Bureau of Land the Cortina Indian Rancheria of Wintun of the Late Period), based on the Management, New Mexico State Office Indians of California); and the Yocha antiquity of the associated funerary at the address in this notice by Dehe Wintun Nation, California objects. Historical, archeological, November 2, 2020. (previously listed as Rumsey Indian anthropological and linguistic evidence Rancheria of Wintun Indians of ADDRESSES: Cynthia Herhahn, Deputy demonstrate a relationship of shared California), hereafter referred to as ‘‘The Preservation Officer and NAGPRA group identity between the human Tribes,’’ may proceed. Coordinator, Bureau of Land remains and associated funerary objects The University of California, Davis is Management, New Mexico State Office, described here and the Patwin Tribes. responsible for notifying The Tribes that 301 Dinosaur Trail, Santa Fe, NM 4. On page 32182, in the third this notice has been published. 87508. column, third paragraph, correct the Dated: , 2020. FOR FURTHER INFORMATION CONTACT: fifth sentence to read: Cynthia Herhahn, Deputy Preservation Melanie O’Brien, The 353 associated funerary objects Officer and NAGPRA Coordinator, Manager, National NAGPRA Program. are 39 clam shell disc beads and bead telephone (505) 761–8938, email fragments, 295 historic glass beads and [FR Doc. 2020–21693 Filed 10–1–20; 8:45 am] [email protected]. bead fragments, one bone bead BILLING CODE 4312–52–P SUPPLEMENTARY INFORMATION: Notice is fragment, one Gunther barbed point, one here given in accordance with the historic copper ring, four unmodified DEPARTMENT OF THE INTERIOR Native American Graves Protection and pebbles, three shell fragments, three Repatriation Act (NAGPRA), 25 U.S.C. obsidian projectile points, one calcined National Park Service 3003, of the correction of an inventory bone (previously identified as a possible of human remains and associated stone bead fragment), and five pieces of [NPS–WASO–NAGPRA–NPS0030868; funerary objects under the control of the incised bird bone that may be from a PPWOCRADN0–PCU00RP14.R50000] U.S. Department of the Interior, Bureau whistle or ear tube. Notice of Inventory Completion for of Land Management, New Mexico State In the Federal Register of July 7, Native American Human Remains and Office, Santa Fe, NM. The human 2009, in FR Doc. E9–16017, on page Associated Funerary Objects in the remains and associated funerary objects 32183, make the following correction: Control of the U.S. Department of the were removed from Rio Arriba County, Interior, Bureau of Land Management, NM. 1. On page 32183, in the first column, This notice is published as part of the New Mexico State Office, Santa Fe, second paragraph, correct the first two National Park Service’s administrative NM; Correction sentences to read: responsibilities under NAGPRA, 25 Officials of the University of AGENCY: National Park Service, Interior. U.S.C. 3003(d)(3). The determinations in California, Davis have determined that, ACTION: Notice; correction. this notice are the sole responsibility of pursuant to 25 U.S.C. 3001 (9–10), the the museum, institution, or Federal human remains described above SUMMARY: The U.S. Department of the agency that has control of the Native represent the physical remains of four Interior, Bureau of Land Management, American human remains and individuals of Native American New Mexico State Office has corrected associated funerary objects. The ancestry. Officials of the University of two Notices of Inventory Completion— National Park Service is not responsible California, Davis also have determined a notice published in the Federal for the determinations in this notice. that, pursuant to 25 U.S.C. 3001 (3) (A), Register on , 2001, and a This notice corrects the minimum the 561 objects described above are notice correction published in the number of individuals and the number reasonably believed to have been placed Federal Register on May 13, 2013. This of associated funerary objects published with or near individual human remains notice corrects the minimum number of in a Notice of Inventory Completion in at the time of death or later as part of individuals and the number of the Federal Register (66 FR 15743– the death rite or ceremony. associated funerary objects. Lineal 15744, March 20, 2001) and a Notice of

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Inventory Completion Correction (78 FR above are reasonably believed to have been Commission, United States and Mexico 27993–27994, May 13, 2013). A re- placed with or near individual human (USIBWC). remains at the time of death or later as part inventory and reassessment of ACTION: Notice. collections resulted in a revision to the of the death rite or ceremony. SUMMARY: Pursuant to the National minimum number of individuals. The Additional Requestors and Disposition minimum number of individuals Environmental Policy Act of 1969; the increased because two human remains Lineal descendants or representatives Council on Environmental Quality Final were identified in a faunal collection, of any Indian Tribe or Native Hawaiian Regulations, and the USIBWC and some infant and juvenile human organization not identified in this notice Operational Procedures for remains were comingled with each that wish to request transfer of control Implementing Section 102 of NEPA, other, as well as with adult human of these human remains and associated published in the Federal Register remains. The re-inventory also resulted funerary objects should submit a written , 1981, the USIBWC hereby in the discovery of additional associated request with information in support of gives notice that the FINAL funerary objects from site LA 297. the request to Cynthia Herhahn, Deputy Environmental Assessment and Finding Transfer of control of the items in this Preservation Officer and NAGPRA of No Significant Impact Arroyo correction notice has not occurred. Coordinator, Bureau of Land Colorado at Harlingen Flood Flow Management, New Mexico State Office, Improvement Project, Cameron County Correction 301 Dinosaur Trail, Santa Fe, NM Texas is available. 87508, telephone (505) 761–8938, email In the Federal Register of March 20, FOR FURTHER INFORMATION CONTACT: 2001, in FR Doc. 01–6840, on page [email protected], by November 2, Kelly Blough, Environmental Protection 2020. After that date, if no additional 15743, make the following correction: Specialist, USIBWC, 4191 N Mesa, El requestors have come forward, transfer 1. On page 15743, column 2, fourth Paso, Texas 79902. Telephone: (915) of control of the human remains and full paragraph, sentences 1 and 2 are 832–4734, Fax: (915) 493–2428, email: associated funerary objects to the Ohkay corrected to read as follows: [email protected]. Owingeh, New Mexico (previously In 1978, human remains representing four listed as Pueblo of San Juan); Pueblo of SUPPLEMENTARY INFORMATION: The individuals were recovered from site LA 297 USIBWC prepared the EA to evaluate in New Mexico during legally authorized Nambe, New Mexico; Pueblo of Pojoaque, New Mexico; Pueblo of San the environmental effects of several excavations and collections conducted by options that would restore the full flood Mike O’Neill of the Bureau of Land Ildefonso, New Mexico; Pueblo of Santa Management. The remains of three Clara, New Mexico; and the Pueblo of conveyance capabilities to a 6.3-mile individuals are presently curated at the Tesuque, New Mexico, may proceed. reach of Arroyo Colorado between U.S. Maxwell Museum of Anthropology, The U.S. Department of the Interior, Highway 77 Business (US 77 Business) University of New Mexico, and the remains Bureau of Land Management, New and Cemetery Road in Harlingen, of one individual are presently curated at the Mexico State Office is responsible for Cameron County Texas. The Preferred Museum of New Mexico, Santa Fe, NM. notifying the Hopi Tribe of Arizona; Alternative would dredge sediment In the Federal Register of May 13, Navajo Nation, Arizona, New Mexico & from the channel throughout the reach 2013, in FR Doc. 2013–11229, on page Utah; Ohkay Owingeh, New Mexico and expand existing vegetation 27993, make the following corrections: (previously listed as Pueblo of San management operations. Vegetation 2. On page 27944, column 1, the Juan); Pueblo of Acoma, New Mexico; management currently occurs along a correction to paragraph 7, sentence 1, is Pueblo of Jemez, New Mexico; Pueblo of 3.7-mile reach of Arroyo Colorado corrected to read as follows: Isleta, New Mexico; Pueblo of Nambe, between US 77 Business and Farm-to- New Mexico; Pueblo of Pojoaque, New Market Road 509 (FM 509). The Between 1979 and 1981, human remains representing 17 individuals were recovered Mexico; Pueblo of San Ildefonso, New Preferred Alternative would expand from site LA 297 in New Mexico during Mexico; Pueblo of Santa Clara, New vegetation management operations to legally authorized excavations and Mexico; Pueblo of Tesuque, New include the 2.6-mile reach from FM 509 collections by Occidental College. Mexico; Pueblo of Zia, New Mexico; and to Cemetery Road. These actions are the Zuni Tribe of the Zuni Reservation, intended to restore Arroyo Colorado’s 3. On page 27944, column 1, the New Mexico, that this notice has been design flood conveyance capacity of correction to paragraph 7, sentence 4, is published. 21,000 cubic feet per second. corrected to read as follows: Dated: , 2020. The final EA evaluates potential The 172 associated funerary objects Melanie O’Brien, environmental impacts of the No Action include one whole ceramic vessel; one lot of Alternative and the Preferred Manager, National NAGPRA Program. burial matting; three lots of corn cobs; one Alternative. Two additional alternatives turquoise fragment; one lot of chipped stone; [FR Doc. 2020–21078 Filed 10–1–20; 8:45 am] were considered and evaluated but were 67 pieces of lithic debitage; 88 ceramic BILLING CODE 4312–52–P sherds; two pebbles; two lithic cores; one soil removed from consideration because sample; four faunal remains; and one they were either not effective or not obsidian drill. feasible. Potential impacts on natural, INTERNATIONAL BOUNDARY AND cultural, and other resources were 4. On page 27944, column 1, the WATER COMMISSION, UNITED evaluated. A Finding of No Significant correction to paragraph 10, sentences 1 STATES AND MEXICO Impact has been prepared for the and 2, is corrected to read as follows: United States Section; Notice of Preferred Alternative based on a review Based on the above information, officials of of the facts and analyses contained in the Bureau of Land Management, New Availability of the Final Environmental Assessment (EA) and Finding of No the EA. Mexico State Office have determined that, An open-house public scoping pursuant to 43 CFR 10.2 (d)(1), the human Significant Impact Arroyo Colorado at meeting was held for the proposed remains listed above represent the physical Harlingen Flood Flow Improvement remains of 22 individuals of Native American Project, Cameron County, Texas project on December 12, 2019, at the ancestry. Officials of the Bureau of Land Harlingen Community Center located at Management have determined that, pursuant AGENCY: United States Section, 201 E. Madison Avenue, Harlingen, to 43 CFR 10.2 (d)(2), the 172 objects listed International Boundary and Water Texas 78552. Notifications of the

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meeting and instructions to access revocation of the antidumping duty September 25, 2020, and made available materials and provide comment order on tetrahydrofurfuryl alcohol from to persons on the Administrative electronically were sent by mail to China would be likely to lead to Protective Order service list for this approximately 200 recipients. continuation or recurrence of material review. A public version will be issued Recipients included adjacent injury within a reasonably foreseeable thereafter, pursuant to section landowners, regional and local time. 207.62(d)(4) of the Commission’s rules. Written submissions.—As provided in representatives of federal and state DATES: , 2020. resource agencies, interested Native section 207.62(d) of the Commission’s FOR FURTHER INFORMATION CONTACT: American tribes, and local elected rules, interested parties that are parties officials. Additionally, notifications Jason Duncan (202–205–3432), Office of to the review and that have provided were posted in newspapers of local Investigations, U.S. International Trade individually adequate responses to the circulation and on City of Harlingen and Commission, 500 E Street SW, notice of institution,2 and any party USIBWC media outlets during the first Washington, DC 20436. Hearing- other than an interested party to the week of December. impaired persons can obtain review may file written comments with Thirty-five attendees signed in and 13 information on this matter by contacting the Secretary on what determination the comments were received within the the Commission’s TDD terminal on 202– Commission should reach in the review. comment period. Approximately seven 205–1810. Persons with mobility Comments are due on or before October commenters stated that they were in impairments who will need special 2, 2020 and may not contain new factual general support of the Expanded assistance in gaining access to the information. Any person that is neither Vegetation & Sediment Removal Commission should contact the Office a party to the five-year review nor an Alternative (i.e., the Preferred of the Secretary at 202–205–2000. interested party may submit a brief Alternative). One commenter expressed General information concerning the written statement (which shall not support for a combination of the three Commission may also be obtained by contain any new factual information) actions that would include Off-Channel accessing its internet server (https:// pertinent to the review by October 2, Storage, Expanded Vegetation Removal, www.usitc.gov). The public record for 2020. However, should the Department and Expanded Vegetation & Sediment this review may be viewed on the of Commerce (‘‘Commerce’’) extend the Removal. The remaining five comments Commission’s electronic docket (EDIS) time limit for its completion of the final proposed additional actions outside of at https://edis.usitc.gov. results of its review, the deadline for the scope of this project that may be SUPPLEMENTARY INFORMATION: comments (which may not contain new considered in the future. An Background.—On June 5, 2020, the factual information) on Commerce’s environmental impact statement will Commission determined that the final results is three business days after not be prepared unless additional domestic interested party group the issuance of Commerce’s results. If information which may affect this response to its notice of institution (85 comments contain business proprietary decision is brought to our attention FR 12337, , 2020) of the subject information (BPI), they must conform within 30 days from the date of this five-year review was adequate and that with the requirements of sections 201.6, Notice. the respondent interested party group 207.3, and 207.7 of the Commission’s Availability: The electronic version of response was inadequate. The rules. The Commission’s Handbook on the Final EA is available on the Commission did not find any other Filing Procedures, available on the USIBWC web page: https:// circumstances that would warrant Commission’s website at https:// www.ibwc.gov/Files/FinalEA_ conducting a full review.1 Accordingly, www.usitc.gov/documents/handbook_ ArroyoColorado_Harlinen_Signed_ the Commission determined that it on_filing_procedures.pdf, elaborates 082420.pdf. would conduct an expedited review upon the Commission’s procedures with pursuant to section 751(c)(3) of the Dated: , 2020. respect to filings. Tariff Act of 1930 (19 U.S.C. 1675(c)(3)). In accordance with sections 201.16(c) Jennifer Pena, For further information concerning and 207.3 of the rules, each document Chief Legal Counsel, International Boundary the conduct of this review and rules of filed by a party to the review must be and Water Commission, United States and general application, consult the Mexico, United States Section. served on all other parties to the review Commission’s Rules of Practice and (as identified by either the public or BPI [FR Doc. 2020–20909 Filed 10–1–20; 8:45 am] Procedure, part 201, subparts A and B service list), and a certificate of service BILLING CODE 7010–01–P (19 CFR part 201), and part 207, must be timely filed. The Secretary will subparts A, D, E, and F (19 CFR part not accept a document for filing without 207). a certificate of service. INTERNATIONAL TRADE Please note the Secretary’s Office will Determination.—The Commission has COMMISSION accept only electronic filings at this determined this review is [Investigation No. 731–TA–1046 (Third time. Filings must be made through the extraordinarily complicated and Review)] Commission’s Electronic Document therefore has determined to exercise its Information System (EDIS, https:// authority to extend the review period by Tetrahydrofurfuryl Alcohol From edis.usitc.gov). No in-person paper- up to 90 days pursuant to 19 U.S.C. China; Scheduling of an Expedited based filings or paper copies of any 1675(c)(5)(B). Five-Year Review electronic filings will be accepted until Authority: This review is being further notice. conducted under authority of title VII of AGENCY: United States International Staff report.—A staff report Trade Commission. the Tariff Act of 1930; this notice is containing information concerning the published pursuant to section 207.62 of ACTION: Notice. subject matter of the review will be the Commission’s rules. placed in the nonpublic record on SUMMARY: The Commission hereby gives 2 The Commission has found the response notice of the scheduling of an expedited 1 A record of the Commissioners’ votes is submitted by Penn A Kem LLC to be individually review pursuant to the Tariff Act of available from the Office of the Secretary and at the adequate. Comments from other interested parties 1930 (‘‘the Act’’) to determine whether Commission’s website. will not be accepted (see 19 CFR 207.62(d)(2)).

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By order of the Commission. other forms of information technology, the grantee/subgrantee’s progress Issued: September 29, 2020. e.g., permitting electronic submission of toward project goals. There is a great Lisa Barton, responses. deal of consistency across the current Secretary to the Commission. Overview of This Information forms in terms of data collected; however; because until now the [FR Doc. 2020–21837 Filed 10–1–20; 8:45 am] Collection technology on which OVW’s grants BILLING CODE 7020–02–P (1) Type of Information Collection: management system operated required New collection (2) Title of the Form/Collection: OVW each data collection to exist as a distinct DEPARTMENT OF JUSTICE Consolidated Progress Report Template form, an OMB number was obtained and (3) Agency form number, if any, and routinely updated for each form. That [OMB Number 1122–NEW] the applicable component of the system, Office of Justice Programs’ Grants Management System, has been Agency Information Collection Department of Justice sponsoring the retired and a new grants management Activities; Proposed eCollection collection: Form Number: 1122–NEW. system, JustGrants, is being eComments Requested; New U.S. Department of Justice, Office on Violence Against Women (OVW) Collection implemented in October 2020. The new (4) Affected public who will be asked system allows OVW to compile a library AGENCY: Office on Violence Against or required to respond, as well as a brief of performance questions that can be Women, Department of Justice. abstract: Primary: The affected public selected and sequenced to match each ACTION: 60-Day notice. includes grantees and subgrantees of program’s current OMB-approved form. formula and discretionary grant Thus, the requested OMB number is to SUMMARY: The Department of Justice, programs authorized under the Violence cover OVW’s performance reporting Office on Violence Against Women Against Women Act (VAWA) of 1994, question library, though grantees will and reauthorized and amended by the (OVW) will be submitting the following only be required to answer a subset of Violence Against Women Act of 2000, information collection request to the the available questions. Office of Management and Budget the Violence Against Women Act of (OMB) for review and approval in 2005, and the Violence Against Women (5) An estimate of the total number of accordance with the Paperwork Act of 2013 and administered by OVW. respondents and the amount of time Reduction Act of 1995. These include states, territories, Tribes estimated for an average respondent to DATES: Comments are encouraged and or units of local government, respond/reply: At any given time, there will be accepted for 60 days until institutions of higher education are approximately 3,000 grantees and December 1, 2020. including colleges and universities, approximately 3,000 subgrantees subject tribal organizations, federal, state, tribal, FOR FURTHER INFORMATION CONTACT: to the above-mentioned reporting territorial or local courts or court-based requirements, and there is some degree Written comments and/or suggestion programs, state sexual assault coalitions, regarding the items contained in this of overlap among grantees and state domestic violence coalitions; subgrantees, meaning some notice, especially the estimated public territorial domestic violence or sexual burden and associated response time, organizations have multiple, active assault coalitions, tribal coalitions, OVW awards on which they are should be directed to Cathy Poston, community-based organizations, and required to report. It is estimated that it Office on Violence Against Women, at non-profit, nongovernmental will take the approximately 6000 202–514–5430 or Catherine.poston@ organizations. usdoj.gov. This submission is to seeking to grantees and subgrantees 60 minutes to SUPPLEMENTARY INFORMATION: Written consolidate previously approved complete an annual or semiannual comments and suggestions from the collections (OMB Numbers 1122–0003, progress reporting form. public and affected agencies concerning 1122–0022, 1122–0005, 1122–0006, (6) An estimate of the total public the proposed collection of information 1122–0007, 1122–0008, 122–0009, burden (in hours) associated with the are encouraged. Your comments should 1122–0010, 1122–0011, 1122–0012, collection: The total annual hour burden address one or more of the following 1122–0013, 1122–0016, 1122–0017, for OVW grantees and subgrantees to four points: 1122–0018, 1122–0021, 1122–0023, complete the annual or semiannual (1) Evaluate whether the proposed 1122–0024, 1122–0026, 1122–0027, and progress reporting form is 6000. collection of information is necessary 1122–0028) under one, new OMB If additional information is required for the proper performance of the number, so as to align with a new data contact: Melody Braswell, Deputy functions of the agency, including collection platform that removes OVW’s whether the information will have need to have separate and distinct forms Clearance Officer, United States practical utility; for collecting performance data. Per Department of Justice, Justice (2) evaluate the accuracy of the GPRA and subsequent legislation, Management Division, Policy and agency’s estimate of the burden of the OMB’s Uniform Administrative Planning Staff, Two Constitution proposed collection of information, Requirements, Cost Principles, and Square, 145 N Street NE, 3E, 405B, including the validity of the Audit Requirements for Federal Awards, Washington, DC 20530. methodology and assumptions used; and OVW’s monitoring policies and Dated: September 29, 2020. (3) Enhance the quality, utility, and procedures, OVW requires semi-annual Melody Braswell, clarity of the information to be performance reports from its grantees collected; and under discretionary programs and Department Clearance Officer, PRA, U.S. Department of Justice. (4) Minimize the burden of the initiatives, as well as annual reports collection of information on those who from grantees and subgrantees under [FR Doc. 2020–21820 Filed 10–1–20; 8:45 am] are to respond, including through the two formula grant programs. BILLING CODE 4410–FX–P use of appropriate automated, Performance reports collect electronic, mechanical, or other Congressionally mandated data as well technological collection techniques or as numeric and narrative information on

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DEPARTMENT OF LABOR the List are to raise public awareness FOR FURTHER INFORMATION CONTACT: about the incidence of child labor and Marcia Eugenio, Director, Office of Notice of Publication of 2020 Update to forced labor in the production of goods Child Labor, Forced Labor, and Human the Department of Labor’s List of in the countries listed and to promote Trafficking, Bureau of International Goods Produced by Child Labor or efforts to eliminate such practices. A Labor Affairs, U.S. Department of Labor, Forced Labor full report, including the updated List at (202) 693–4843 (this is not a toll free and a discussion of the List’s number). Individuals with hearing or AGENCY: Bureau of International Labor methodology, as well as Frequently speech impairments may access the Affairs, Department of Labor. Asked Questions and a bibliography of telephone number above via TTY by ACTION: Announcement of public sources, are available on the Department calling the Federal Information Relay availability of updated list of goods with of Labor website at: http://www.dol.gov/ Service at 1–877–889–5627. Comments, child labor or forced labor. ilab/reports/child-labor/list-of-goods/. identified as ‘‘Docket No. DOL–2020– 0008,’’ may be submitted by any of the SUMMARY: This notice announces the Authority: 22 U.S.C. 7112(b)(2)(C). following methods: publication of an updated list of Signed at Washington, DC, this 28th day of • Federal eRulemaking Portal: http:// goods—along with countries of origin— September 2020. www.regulations.gov. The portal that the Bureau of International Labor Grant Lebens, includes instructions for submitting Affairs (ILAB) has reason to believe are Chief of Staff, Bureau of International Labor comments. Parties submitting responses produced by child labor or forced labor Affairs. electronically are encouraged not to in violation of international standards [FR Doc. 2020–21759 Filed 10–1–20; 8:45 am] submit paper copies. (the List). ILAB is required to develop BILLING CODE 4510–28–P • Email: [email protected]. and make available to the public the List SUPPLEMENTARY INFORMATION: pursuant to the Trafficking Victims Protection Reauthorization Act (TVPRA) DEPARTMENT OF LABOR I. Information Sought of 2005, as amended. DOL is requesting public comment on DATES: Publication on: September 30, Notice of Initial Determination Revising the revisions to the list proposed below, 2020. the List of Products Requiring Federal as well as any other issue related to the Contractor Certification as to Forced fair and effective implementation of FOR FURTHER INFORMATION CONTACT: or Indentured Child Labor Executive Order (E.O.) 13126. This Director, Office of Child Labor, Forced notice is a general solicitation of Labor, and Human Trafficking, Bureau AGENCY: Bureau of International Labor comments from the public. All of International Labor Affairs, U.S. Affairs, United States Department of submitted comments will be made a Department of Labor, at (202) 693–4843 Labor. part of the public record and will be (this is not a toll free number) or ILAB- available for inspection on http:// [email protected]. Individuals with ACTION: Request for comments. www.regulations.gov. hearing or speech impairments may In conducting research for this initial access the telephone number above via SUMMARY: This initial determination proposes to revise the list (E.O. List) determination, DOL considered a wide TTY by calling the Federal Information variety of materials based on its own Relay Service at 1–877–889–5627. required by the ‘‘Prohibition of Acquisition of Products Produced by research and originating from other U.S. SUPPLEMENTARY INFORMATION: The Forced or Indentured Child Labor’’ in Government agencies, foreign Bureau of International Labor Affairs accordance with the Department of governments, international (ILAB) announces the publication of the Labor’s ‘‘Procedural Guidelines for the organizations, non-governmental ninth edition of the List of Goods Maintenance of the List of Products organizations, U.S. Government-funded Produced by Child Labor or Forced Requiring Federal Contractor technical assistance and field research Labor (List), pursuant to the Trafficking Certification as to Forced or Indentured projects, academic and other Victims Protection Reauthorization Act Child Labor’’ (the Procedural independent research, media, and other (TVPRA) of 2005, as amended (TVPRA). Guidelines). The E.O. List identifies sources. The Department of State and ILAB published the initial List on U.S. embassies and consulates abroad products by their country of origin that , 2009, and has since also provide important information by the Department of Labor (DOL), in published eight updated editions. The gathering data from contacts, consultation and cooperation with the 2020 edition adds six new goods conducting site visits, and reviewing Departments of State and Homeland (gloves, rubber gloves, hair products, local media sources. In developing the Security (the three Departments), has a pome and stone fruits, sandstone, and proposed revision to the E.O. List, reasonable basis to believe might have tomato products) and two new countries DOL’s review focused on information been mined, produced, or manufactured (Venezuela and Zimbabwe) and one concerning the use of forced or by forced or indentured child labor. new area (Taiwan) to the List. This indentured child labor that was This notice proposes to add one new edition also features the removal of available from the above sources. line item (bricks from Cambodia) to the cattle produced with child labor in As outlined in the Procedural E.O. List. DOL invites public comment Namibia from the List. Guidelines, several factors were on this initial determination. The three Section 105(b) of the TVPRA weighed in determining whether or not Departments will consider all public mandates that ILAB develop and a product should be placed on the comments prior to publishing a final publish a list of goods from countries revised E.O. List: The nature of the determination revising the E.O. List. that ILAB ‘‘has reason to believe are information describing the use of forced produced with child labor or forced DATES: Information should be submitted or indentured child labor; the source of labor in violation of international to the Office of Child Labor, Forced the information; the date of the standards’’ 22 U.S.C. 7112(b)(2). ILAB’s Labor, and Human Trafficking (OCFT) information; the extent of corroboration Office of Child Labor, Forced Labor, and via one of the methods described below of the information by other sources; Human Trafficking (OCFT) carries out by no later than 5 p.m., December 1, whether the information involved more this mandate. The primary purposes of 2020. than an isolated incident; and whether

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recent and credible efforts are being produced, or manufactured with forced Authority: Executive Order 13126 of June made to address forced or indentured or indentured child labor (66 FR 5353). 12, 1999. child labor in a particular country or The Procedural Guidelines provide Signed at Washington, DC, this 28th day of industry (66 FR 5351). that the E.O. List may be revised September 2020. This notice constitutes the initial through consideration of submissions by Grant Lebens, determination to revise the E.O. List individuals and on DOL’s own Chief of Staff, Bureau of International Labor issued , 2019. initiative. When proposing a revision to Affairs. Based on recent credible and the E.O. List, DOL must publish in the [FR Doc. 2020–21789 Filed 10–1–20; 8:45 am] Federal Register a notice of initial appropriately corroborated information BILLING CODE 4510–28–P from various sources, DOL preliminarily determination, which includes any concludes that there is a reasonable proposed alteration to the E.O. List. basis to believe that the following DOL will consider all public comments DEPARTMENT OF LABOR product, identified by the country of prior to the publication of a final origin, might have been mined, determination of a revised E.O. List, Occupational Safety and Health produced, or manufactured by forced or which is made in consultation and Administration indentured child labor: cooperation with the Departments of State and Homeland Security. [Docket No. OSHA–2020–0002] Product Country On , 2001, pursuant to National Advisory Committee on Section 3 of E.O. 13126, the Federal Occupational Safety and Health Bricks ...... Cambodia. Acquisition Regulatory Council (NACOSH); Charter Renewal published a final rule to implement DOL invites public comment on specific provisions of E.O. 13126 that AGENCY: Occupational Safety and Health whether these products (and/or other requires, among other things, that Administration (OSHA), Labor. products, regardless of whether they are federal contractors who supply products ACTION: Renewal of the NACOSH mentioned in this Notice) should be that appear on the E.O. List certify to the charter. included in or removed from the revised contracting officer that the contractor, E.O. List. To the extent possible, or, in the case of an incorporated SUMMARY: The Secretary of Labor comments provided should address the contractor, a responsible official of the (Secretary) has renewed the charter for criteria for inclusion of a product on the contractor, has made a good faith effort NACOSH. E.O. List contained in the Procedural to determine whether forced or FOR FURTHER INFORMATION CONTACT: Guidelines discussed above. indentured child labor was used to For press inquiries: Mr. Francis Following receipt and consideration mine, produce, or manufacture any Meilinger, Director, OSHA Office of of comments on the addition to the E.O. product furnished under the contract Communications, U.S. Department of List set out above, DOL, in consultation and that, on the basis of those efforts, Labor; telephone: (202) 693–1999 (TTY and cooperation with the Departments the contractor is unaware of any such (877) 889–5627); email: of State and Homeland Security, will use of forced or indentured child labor. [email protected]. issue a final determination in the See 48 CFR Subpart 22.15. For general information: Ms. Amy Federal Register. The three Departments On September 11, 2009, DOL Wangdahl, Director, OSHA Office of intend to continue to revise the E.O. List published an initial determination in Maritime and Agriculture, Directorate of periodically to add and/or remove the Federal Register proposing to revise Standards and Guidance; telephone: products as warranted by the receipt of the E.O. List to include 29 products (202) 693–2066 (TTY (877) 889–5627); new and credible information. from 21 countries. The Notice requested email: [email protected]. public comments for a period of 90 SUPPLEMENTARY INFORMATION: II. Background days. Public comments were received The Secretary has renewed the and reviewed by all relevant agencies On June 12, 1999, President Clinton NACOSH charter. The charter will and a final determination was issued on signed E.O. 13126, which was published expire two years from its filing date. , 2010. The most recent E.O. List, in the Federal Register on , 1999 Congress established NACOSH in finalized on March 25, 2019, includes (64 FR 32383). E.O. 13126 declared that Section 7(a) of the Occupational Safety it was ‘‘the policy of the United States 34 products from 25 countries. The current E.O. List and the and Health Act of 1970 (OSH Act) (29 Government . . . that executive Procedural Guidelines can be accessed U.S.C. 651, 656) to advise, consult with, agencies shall take appropriate actions on the internet at https://www.dol.gov/ and make recommendations to the to enforce the laws prohibiting the agencies/ilab/reports/child-labor/list-of- Secretary and the Secretary of Health manufacture or importation of goods, products. and Human Services on matters relating wares, articles, and merchandise mined, to the administration of the OSH Act. produced or manufactured wholly or in III. Definitions NACOSH is a non-discretionary part by forced or indentured child Under Section 6(c) of E.O. 13126: advisory committee of indefinite labor.’’ Pursuant to E.O. 13126, and Forced or indentured child labor— duration. following public notice and comment, Forced or indentured child labor means NACOSH operates in accordance with DOL published in the January 18, 2001, all work or service: the Federal Advisory Committee Act Federal Register the first E.O. List of (1) Exacted from any person under the (FACA) (5 U.S.C. App. 2), its products, along with their respective age of 18 under the menace of any implementing regulations (41 CFR part countries of origin, that DOL, in penalty for its nonperformance and for 102–3), and OSHA’s regulations on consultation and cooperation with the which the worker does not offer himself NACOSH (29 CFR part 1912a). Pursuant Departments of State and Treasury voluntarily; or to FACA (5 U.S.C. App. 2, 14(b)(2)), the (whose relevant responsibilities are now (2) Performed by any person under NACOSH charter must be renewed within the Department of Homeland the age of 18 pursuant to a contract the every two years. Security), had a reasonable basis to enforcement of which can be The new NACOSH charter is available believe might have been mined, accomplished by process or penalties. to read or download at http://

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www.regulations.gov (Docket No. response, and estimated total burden authorization within the agent’s OSHA–2020–0002), the federal may be obtained free by contacting automated system before a bill can be rulemaking portal. The charter also is Anjanette Suggs by telephone at 202– paid. The collection of this information available on the NACOSH page on 354–9660 or by email at is authorized by 20 CFR 30.400(a) and OSHA’s web page at http:// [email protected]. (c), 30.403, 30.404(b) and 30.700. The www.osha.gov and at the OSHA Docket Submit written comments about, or information collections in this ICR Office, N–3653, U.S. Department of requests for a copy of, this ICR by mail collect demographic, factual and Labor, 200 Constitution Avenue NW, or courier to the U.S. Department of medical information that OWCP and/or Washington, DC 20210; telephone (202) Labor, Office of Workers’ Compensation its bill processing agent needs to process 693–2350. Please note: While OSHA’s Programs, Room S3323, 200 bills for medical treatment, supplies or Docket Office is continuing to accept Constitution Avenue NW, Washington, services. and process request, due to the COVID– DC 20210; by email: suggs.anjanette@ DOL authorizes this information 19 pandemic, the Docket Office is dol.gov. collection. This information collection closed to the public. In addition, the FOR FURTHER INFORMATION CONTACT: is subject to the PRA. A Federal agency charter is available for viewing or Anjanette Suggs by telephone at 202– generally cannot conduct or sponsor a download at the Federal Advisory 354–9660 or by email at collection of information, and the public Committee Database at http:// [email protected]. is generally not required to respond to www.facadatabase.gov. SUPPLEMENTARY INFORMATION: The DOL, an information collection, unless the AUTHORITY AND SIGNATURE: Loren Sweatt, as part of continuing efforts to reduce OMB under the PRA approves it and Principal Deputy Assistant Secretary of paperwork and respondent burden, displays a currently valid OMB Control Labor for Occupational Safety and conducts a pre-clearance consultation Number. In addition, notwithstanding Health, directed the preparation of this program to provide the general public any other provisions of law, no person notice under the authority granted by 29 and Federal agencies an opportunity to shall generally be subject to penalty for U.S.C. 656; 5 U.S.C. App. 2; 29 CFR part comment on proposed and/or failing to comply with a collection of 1912a; 41 CFR part 102–3; and Secretary continuing collections of information information that does not display a of Labor’s Order No. 8–2020 (85 FR before submitting them to the OMB for valid Control Number. See 5 CFR 58393, 9/18/2020). final approval. This program helps to 1320.5(a) and 1320.6. ensure requested data can be provided Interested parties are encouraged to Signed at Washington, DC, on September provide comments to the contact shown 28, 2020. in the desired format, reporting burden in the ADDRESSES section. Written Loren Sweatt, (time and financial resources) is minimized, collection instruments are comments will receive consideration, Principal Deputy Assistant Secretary of Labor and summarized and included in the for Occupational Safety and Health. clearly understood, and the impact of collection requirements can be properly request for OMB approval of the final [FR Doc. 2020–21760 Filed 10–1–20; 8:45 am] assessed. ICR. In order to help ensure appropriate BILLING CODE 4510–26–P Background: The Office of Workers’ consideration, comments should Compensation Programs (OWCP) is the mention OMB# 1240–0NEW. primary agency responsible for Submitted comments will also be a DEPARTMENT OF LABOR administration of the Energy Employees matter of public record for this ICR and Workers Compensation Programs Occupational Illness Compensation posted on the internet, without Office Program Act of 2000, as amended redaction. The DOL encourages (EEOICPA), 42 U.S.C. 7384 et seq. commenters not to include personally Agency Information Collection EEOICPA provides for the payment of identifiable information, confidential Activities; Comment Request; Division compensation to covered employees business data, or other sensitive of Energy Employees Occupational and, where applicable, survivors of statements/information in any Illness (DEEOIC) Authorization Forms deceased employees, who sustained comments. either an ‘‘occupational illness’’ or a The DOL is particularly interested in AGENCY: Office of Workers’ ‘‘covered illness’’ in the performance of comments that: Compensation, Department of Labor. duty for the Department of Energy and • Evaluate whether the proposed ACTION: Notice. certain of its contractors and collection of information is necessary subcontractors. One element of the for the proper performance of the SUMMARY: The Department of Labor compensation provided to covered functions of the agency, including (DOL) is soliciting comments employees is medical benefits for the whether the information will have concerning a proposed extension for the treatment of their occupational or practical utility. authority to conduct the information covered illnesses that are accepted as • Evaluate the accuracy of the collection request (ICR) titled, ‘‘DEEOIC compensable. OWCP contracts with a agency’s estimate of the burden of the Authorization Request Forms’’. This private sector bill processing agent that proposed collection of information, comment request is part of continuing handles many of the tasks associated including the validity of the Departmental efforts to reduce with paying bills for medical treatment methodology and assumptions used. paperwork and respondent burden in provided to covered employees under • Enhance the quality, utility, and accordance with the Paperwork EEOICPA. This bill processing agent clarity of the information to be Reduction Act of 1995 (PRA). uses an automated system that matches collected; and DATES: Consideration will be given to all incoming bills with the authorized • Minimize the burden of the written comments received December 1, medical treatment of covered employees collection of information on those who 2020. before it issues payments, and a are to respond, including through the ADDRESSES: A copy of this ICR with provider of medical treatment, supplies use of appropriate automated, applicable supporting documentation; or services to covered employees must electronic, mechanical, or other including a description of the likely provide the bill processing agent with technological collection techniques or respondents, proposed frequency of information necessary for creation of an other forms of information technology,

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e.g., permitting electronic submission of instrument(s) and instructions should IV. Request for Comments responses. be directed to Roger Kantz, NASA Comments are invited on: (1) The Agency: DOL-Office of Workers’ Clearance Officer, NASA Headquarters, accuracy of NASA’s estimate of the Compensation Programs 300 E Street SW, Washington, DC 20546 burden (including hours and cost) of the Type of Review: New Collection. or email [email protected]. proposed collection of information; (2) Title of Collection: DEEOIC SUPPLEMENTARY INFORMATION: ways to enhance the quality, utility, and Authorization Forms clarity of the information to be Agency Form Number: EE–22, EE–24, I. Abstract: collected; and (3) ways to minimize the EE–26, EE–28, EE–30, EE–32 This collection of information burden of the collection of information OMB Control Number: 1240–0NEW. supports NASA’s term and condition on respondents, including automated Affected Public: Individuals or regarding sexual harassment, other collection techniques or the use of other households; businesses or other for- forms of harassment, and sexual assault. forms of information technology. profit. This term and condition requires Comments submitted in response to Estimated Number of Respondents: recipient organizations to report to this notice will be summarized and 12,890. NASA any findings/determinations of Frequency: Varies by form. included in the request for OMB sexual harassment, other forms of approval of this information collection. Total Estimated Annual Responses: harassment, or sexual assault regarding 66,770. They will also become a matter of a NASA funded PI or Co-I. The new public record. Estimated Average Time per term and condition will also require the Response: 10 minutes. recipient to report to NASA if the PI or Roger Kantz, Estimated Total Annual Burden Co-I is placed on administrative leave or NASA PRA Clearance Officer. Hours: 11,129. if the recipient has imposed any [FR Doc. 2020–21810 Filed 10–1–20; 8:45 am] Comments submitted in response to administrative action on the PI or Co-I, BILLING CODE 7510–13–P this notice will be summarized and/or or any determination or an investigation included in the request for Office of of an alleged violation of the recipient’s Management and Budget approval of the policies or codes of conduct, statutes, NATIONAL AERONAUTICS AND information collection request; they will regulations, or executive orders relating SPACE ADMINISTRATION also become a matter of public record. to sexual harassment, other forms of [Notice: 20–079] Authority: 44 U.S.C. 3506(c)(2)(A). harassment, or sexual assault. In reviewing harassment notifications Anjanette Suggs, Notice of Availability of the Record of pursuant to the term and condition, it Decision for NASA’s Supplemental Agency Clearance Officer, Office of Workers’ will be necessary for the Agency to have Environmental Impact Statement for Compensation Programs, U.S. Department of complete information provided in a Labor. Soil Cleanup Activities at Santa consistent manner. The information [FR Doc. 2020–21790 Filed 10–1–20; 8:45 am] Susana Field Laboratory, Ventura provided will be used by the Agency to County, California BILLING CODE 4510–CR–P assess the matters reported and to consult with the Authorized AGENCY: National Aeronautics and Organizational Representative (AOR), or Space Administration (NASA). NATIONAL AERONAUTICS AND designee of the reporting institution. ACTION: Notice of availability of the SPACE ADMINISTRATION Based on the results of this review and Record of Decision (ROD). [Notice: 20–080] consultation, NASA may, if necessary, assert its programmatic stewardship SUMMARY: NASA announces its decision Name of Information Collection: Term responsibilities and oversight authority concerning agency actions related to soil and Condition Notification of to initiate the substitution or removal of cleanup activities at the Santa Susana Harassment Form the PI or any co-PI, reduce the award Field Laboratory, Ventura County, funding amount, or where neither of California. NASA’s decision is AGENCY: National Aeronautics and those previous options is available or supported by the detailed analysis Space Administration (NASA). adequate, to suspend or terminate the found in the Final Supplemental ACTION: Notice of information collection award. Environmental Impact Statement for Soil Cleanup Activities (SEIS), as SUMMARY: The National Aeronautics and II. Methods of Collection: summarized in the agency’s Record of Space Administration, as part of its Electronic. Decision (ROD). continuing effort to reduce paperwork ADDRESSES: The Santa Susana Field and respondent burden, invites the III. Data Laboratory (SSFL) SEIS ROD and related general public and other Federal Title: NASA Term and Condition National Environmental Policy Act agencies to take this opportunity to Notification of Harassment Form. (NEPA) documents are available at comment on proposed and/or OMB Number: NASA’s SSFL project website (https:// continuing information collections. Type of review: New. www.nasa.gov/feature/environmental- Affected Public: NASA grant recipient DATES: Comments are due by 10/31/ impact-statement-eis-for-demolition- 2020. institution reporting officials. Estimated Annual Number of and-environmental-cleanup-activities). ADDRESSES: All comments should be Activities: 20. FOR FURTHER INFORMATION CONTACT: addressed to Roger Kantz, National Estimated Number of Respondents Peter Zorba, SSFL Project Director, Aeronautics and Space Administration, per Activity: 1. email at msfc-ssfl-information@ 300 E Street SW, Washington, DC Annual Responses: 20. mail.nasa.gov, or phone (202) 714–0496. 20546–0001 or call 281.792.7885. Estimated Time per Response: 1 hour. Additional information about NASA’s FOR FURTHER INFORMATION CONTACT: Estimated Total Annual Burden SSFL site, the soil and cleanup Requests for additional information or Hours: 20. activities, and the associated planning copies of the information collection Estimated Total Annual Cost: $2,000. process and documentation (as

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available) may be found on the internet approximately 1,200 comments and In 2009, NASA completed a review of at https://www.nasa.gov/feature/ hosted two public meetings in Ventura its property holdings at SSFL and environmental-impact-statement-eis-for- County and Los Angeles County determined SSFL was no longer needed demolition-and-environmental-cleanup- respectively. Oral and written by NASA to meet its then current needs activities or on the California comments were received at each public or future mission requirements. On Department of Toxic Substances Control meeting. After considering the , 2009, NASA requested (DTSC) website at https:// comments received on the Draft SEIS, the General Services Administration www.dtsc.ca.gov/SiteCleanup/Santa_ NASA prepared and published the Final (GSA) take action for disposition of its Susana_Field_Lab/. SEIS on , 2020 (85 FR 44930). portion of SSFL. On , SUPPLEMENTARY INFORMATION: 2009, the GSA conditionally accepted SSFL Site Background NASA’s request to undertake action to Background SSFL is located on 2,850 acres of dispose of the property subject to the NASA prepared the SSFL SEIS in open, rocky terrain above California’s following conditions: (1) The receipt of accordance with NEPA (42 U.S.C. 4321 Simi Valley in southeastern Ventura NASA’s certification that all remedial et seq.), CEQ NEPA implementing County, approximately 30 miles action necessary to protect human regulations (40 CFR parts 1500—1508), northwest of Los Angeles. SSFL is health and the environment with NASA’s NEPA Implementing divided into four Administrative Areas respect to any hazardous substance regulations (14 CFR 1216.3), and NASA (Areas I through IV) and two remaining on the property has been NEPA policy (NASA Procedural undeveloped areas. Area II and a small taken, or receipt of EPA’s Requirements 8580.1—Implementing portion of Area I (the Former Liquid [Environmental Protection Agency’s] the National Environmental Policy Act Oxygen (LOX) Plant Area) are owned by written concurrence that an approved and Executive Order 12114). NASA the U.S. Government and administered and installed remedial design is announced its intent to prepare a SEIS by NASA. The remainder of the operating properly and successfully, or; on April 5, 2018 (84 FR 13725). The property is owned by The Boeing (2) the receipt of the Governor’s SEIS was limited in scope to the Company (Boeing). In Area IV, the U.S. concurrence in the suitability of the proposed soil cleanup activities at Department of Energy (DOE) has property for transfer as provided in SSFL.1 Preparation of the SEIS was prepared an environmental impact CERCLA [Comprehensive required because NASA determined that statement for building demolition and Environmental Response, Compensation significant new circumstances exist the cleanup of soil and groundwater and and Liability Act] Section 120(h)(3)(C). relevant to environmental concerns remediation activities related to its Purpose and Need for Agency Action previous activities at SSFL (see e.g., bearing on the cleanup of the SSFL site The purpose and need of NASA’s NOA, 83 FR 67282). and the potential environmental proposed action is to use the best impacts of those activities exist. Since the mid-1950s, when SSFL was available science and technology to Specifically, the estimated quantity of administered by the U.S. Air Force, this achieve a soil cleanup at SSFL in a soil required to be removed during site site has been used for developing and timely manner that minimizes impacts cleanup under the California DTSC’s testing rocket engines. Four test stand to the community, and which is fully proposed framework had increased complexes were constructed in Area II protective of the public health and substantially since the publication of between 1954 and 1957 named Alfa, welfare. As set forth in the ROD, NASA NASA’s 2014 Final EIS. This increase Bravo, Coca, and Delta. These test areas has decided that, based on its had the potential to significantly alter along with the LOX Plant portion of comparison of alternatives in the Final the environmental impacts that were Area I were acquired by NASA from the SEIS, selection of Alternative C— evaluated in the 2014 Final EIS. For this U.S. Air Force in the 1970s. NASA Suburban Residential Cleanup (based on reason, pursuant to NEPA, NASA conducted rocket engine testing in the DTSC-approved Standardized Risk determined it was required to prepare a support of the nation’s space Assessment) most fully supports the supplement to the 2014 Final EIS. On exploration programs (e.g., Apollo purpose and need and is NASA’s , 2019, NASA published a program, Space Shuttle program) at preferred and environmentally preferred Notice of Availability (NOA) (84 FR SSFL and concluded its activities alternative for soil cleanup at SSFL. 57490) for the SSFL Draft SEIS, which related to rocket engine and component Selection of Alternative C applies an initiated a 45-day public comment testing in 2006. accepted risk methodology to soil period. On , 2019, NASA Environmental sampling at SSFL cleanup activities which accounts for published a notice in the FR which indicates that contaminants are present the reasonably foreseeable future use of advised the public that the comment in soil within the NASA-administered the land, the health and safety of period would be extended by 30 days to portion of SSFL. In 2018, the California surrounding communities, the , 2020 (84 FR 67296). During Department of Toxic Substances Control protection and preservation of the comment period, NASA received (DTSC) approved NASA’s Soil significant cultural and natural Treatability Study and in 2019 DTSC resources, and the implementability of 1 NASA published a Final Environmental Impact approved NASA’s Soil Data Summary each alternative. Statement for demolition of site infrastructure, soil Report. The scientific data from these cleanup and groundwater remediation within Alternatives NASA administered ‘‘Area II’’ and a portion of reports showed the soil quantity that ‘‘Area I’’ (former LOX Plant) of SSFL on , may need to be removed from the SSFL In the Draft and Final SEIS, NASA 2014 (79 FR 14545). NASA subsequently issued a site under DTSC’s Look Up Table (LUT) evaluated the No Action Alternative and ROD for building demolition on , 2014. At four other action alternatives. In the that time, a decision was made to defer issuing framework (i.e., Alternative A in the RODs for the cleanup of soil and groundwater until Final SEIS) far exceeded the estimate Final SEIS, the impacts of soil further investigations, analysis, and planning could NASA used in its 2014 Final EIS. NASA remediation activities at the NASA- be completed. Upon completion of the SSFL Draft subsequently determined this administered Area I Former LOX Plant Groundwater Corrective Measure Study, a ROD and Area II are comprehensively allowing groundwater cleanup at SSFL was signed constituted significant new information on , 2018 and published in the Federal relevant to environmental concerns and evaluated. The alternatives considered Register on , 2018 (83 FR 52570). bearing on the Proposed Action. for cleaning up the soil are as follows:

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Alternative A: Administrative Order on foreseeable future use of the land, is Community Learning Centers (21st Consent (AOC) Cleanup; Alternative B: fully protective of the health and safety CCLC) program and investigate Revised LUT Levels Cleanup; of surrounding communities, preserves outcomes for museum staff, 21st CCLC Alternative C: Suburban Residential significant existing cultural and natural staff, and youth participants. A copy of Cleanup; Alternative D: Recreational resources, reduces the time horizon for the proposed information collection Cleanup; and the No Action Alternative project completion, reduces the request can be obtained by contacting These alternatives are described in environmental impact of the overall the individual listed below in the detail in the Alternatives Selection project, provides greater flexibility to ADDRESSES section of this notice. section of the ROD (see section B.4) and the U.S. government in the event the DATES: Written comments must be Chapters 2 and 3 of the Final SEIS. The property is transferred at a later date, submitted to the office listed in the following specifics apply to the cleanup and considers the long term addressee section below on or before alternatives considered in this SEIS: implementability of each alternative. November 30, 2020. • All risk-based alternatives are The Associate Administrator for ADDRESSES: Send comments to Connie protective of public health and the Mission Support Directorate signed the Bodner, Ph.D., Director of Grants Policy environment and follow nationwide Soil Cleanup ROD, which constitutes and Management, Office of Grants U.S. Environmental Protection Agency the final decision by NASA for soil Policy and Management, Institute of (EPA) guidelines and the DTSC- cleanup at SSFL. A copy of this Museum and Library Services, 955 approved standardized risk-based document can be found at https:// L’Enfant Plaza North SW, Suite 4000, methodology specific to SSFL. www.nasa.gov/feature/environmental- Washington, DC 20024–2135. Dr. • The implementation of the ‘‘AOC’’ impact-statement-eis-for-demolition- cleanup alternative would have the and-environmental-cleanup-activities. Bodner can be reached by Telephone: most significant adverse impacts to the 202–653–4636 or by email at cbodner@ surrounding community and the Cheryl Parker, imls.gov, or by teletype (TTY/TDD) for protected cultural, natural, and Federal Register Liaison Officer. persons with hearing difficulty at 202– biological resources. [FR Doc. 2020–21787 Filed 10–1–20; 8:45 am] 653–4614. Office hours are from 8:30 • The beneficial impacts for biology, BILLING CODE 7510–13–P a.m. to 5 p.m., E.T., Monday through water resources, and health and safety Friday, except Federal holidays. are the same for all the cleanup FOR FURTHER INFORMATION CONTACT: alternatives. THE NATIONAL FOUNDATION FOR Reagan Moore, Senior Program Officer, THE ARTS AND THE HUMANITIES Office of Museum Services, Institute of Comments Received on the Final SEIS Museum and Library Services, 955 The Notice of Availability for the Institute of Museum and Library L’Enfant Plaza North SW, Suite 4000, SSFL Final SEIS published in the Services Washington, DC 20024–2135. Ms. Federal Register on July 24, 2020 Moore can be reached by Telephone: commencing a 30-day pre-decisional Notice of Proposed Information 202–653–4637, or by email at rmoore@ waiting period that concluded on Collection Requests: Maker/STEM imls.gov, or by teletype (TTY/TDD) for August 24, 2020. During this pre- Education Support for 21st Century persons with hearing difficulty at 202– decisional period, NASA received Community Learning Centers Program 653–4614. Evaluation comments from the United States SUPPLEMENTARY INFORMATION: IMLS is Environmental Protection Agency AGENCY: Institute of Museum and particularly interested in public Region IX, the City of Los Angeles, and Library Services, National Foundation comment that help the agency to: a joint letter from the Committee to for the Arts and the Humanities. • Evaluate whether the proposed Bridge the Gap (CBG), Physicians for ACTION: Notice, request for comments, collection of information is necessary Social Responsibility—Los Angeles collection of information. for the proper performance of the (PSR–LA), and the Natural Resources functions of the agency, including Defense Council (NRDC). The CBG also SUMMARY: The Institute of Museum and whether the information will have submitted supplemental comments in Library Services (IMLS), as part of its practical utility; support of the joint comments described continuing effort to reduce paperwork • Evaluate the accuracy of the above. Prior to making its final decision, and respondent burden, conducts a agency’s estimate of the burden of the NASA considered the matters raised by preclearance consultation program to proposed collection of information each commenter, evaluated the analysis, provide the general public and Federal including the validity of the scientific basis, and methodology used agencies with an opportunity to methodology and assumptions used; to validate the conclusions set forth in comment on proposed and/or • Enhance the quality, utility, and the Final SEIS, and determined the continuing collections of information in clarity of the information to be received comments do not affect the accordance with the Paperwork collected; and findings of the Final SEIS. Specific Reduction Act. This pre-clearance • Minimize the burden of the responses to the received comments are consultation program helps to ensure collection of information on those who found in Section C.2 of the ROD. that requested data can be provided in are to respond, including through the the desired format, reporting burden use of appropriate automated electronic, Decision (time and financial resources) is mechanical, or other technological NASA has decided to adopt minimized, collection instruments are collection techniques, or other forms of Alternative C—Suburban Residential clearly understood, and the impact of information technology, e.g., permitting Cleanup as its Preferred Alternative for collection requirements on respondents electronic submissions of responses. implementation of soil cleanup can be properly assessed. The purpose activities at the NASA administered of this notice is to solicit comments I. Background areas of SSFL. Selection of Alternative concerning a proposed survey and The Institute of Museum and Library C applies an accepted risk assessment interviews to document the Services is the primary source of methodology to soil cleanup activities implementation of the Maker/STEM Federal support for the Nation’s which accounts for the reasonably Education Support for 21st Century libraries and museums. We advance,

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support, and empower America’s Dated: September 29, 2020. NATIONAL SCIENCE FOUNDATION museums, libraries, and related Kim Miller, organizations through grant making, Senior Grants Management Specialist, Notice of Intent to Renew a Current research, and policy development. Our Institute of Museum and Library Services. Information Collection vision is a nation where museums and [FR Doc. 2020–21857 Filed 10–1–20; 8:45 am] AGENCY: National Science Foundation. libraries work together to transform the BILLING CODE 7036–01–P ACTION: Notice and request for lives of individuals and communities. comments. To learn more, visit www.imls.gov. SUMMARY: II. Current Actions The National Center for NATIONAL SCIENCE FOUNDATION Science and Engineering Statistics The Maker/STEM Education Support (NCSES) within the National Science for 21st Century Community Learning Advisory Committee for Biological Foundation (NSF) is announcing plans Centers program is designed to enhance Sciences; Notice of Meeting to request an amendment to the Higher science, technology, engineering, and Education Research and Development In accordance with the Federal math (STEM) education learning in 21st (HERD) Survey (OMB Number 3145– Advisory Committee Act (Pub. L. 92– CCLC programs by providing 21st CCLC 0100). In accordance with the 463, as amended), the National Science site staff with maker-related requirements of the Paperwork Foundation announces the following professional development, and a Reduction Act of 1995, we are providing meeting: curriculum and activities to implement opportunity for public comment on this with youth at approximately forty 21st Name and Committee Code: Advisory action. After obtaining and considering CCLC sites across seven states. The Committee for Biological Sciences public comment, NCSES will prepare purpose of this collection is to (#1110) (Virtual). the submission requesting that OMB document the program’s Date and Time: October 29, amend the clearance of this collection. implementation across these sites and 2020,10:00 a.m.–4:30 p.m.; October 30, DATES: Written comments on this notice investigate the associated outcomes for 2020,10:00 a.m.–12:30 p.m. must be received by , 2020 to participating youth, 21st CCLC site staff, be assured of consideration. Comments Place: National Science Foundation, and museum staff. received after that date will be 2415 Eisenhower Avenue, Room E2030, considered to the extent practicable. The evaluation is intended to provide Alexandria, VA 22314 (Virtual). insight for programmatic improvements FOR ADDITIONAL INFORMATION OR Due to ongoing social distancing best and learning for potential future COMMENTS: Contact Suzanne H. practices because of COVID–19 the implementations. Methods will include Plimpton, Reports Clearance Officer, meeting will be held virtually among qualitative and quantitative data National Science Foundation, 2415 the Advisory Committee members. collection via a mixed methods Eisenhower Avenue, W18253, Livestreaming will be accessible approach. Data collection activities will Alexandria, Virginia 22314; telephone through this page: https://nsf.gov/bio/ include interviews with 21st CCLC (703) 292–7556; or send email to advisory.jsp. youth, staff, and museum staff, and [email protected]. Individuals who use surveys with 21st CCLC staff. Type of Meeting: Open. a telecommunications device for the deaf (TDD) may call the Federal Agency: Institute of Museum and Contact Person: Karen Cone, National Information Relay Service (FIRS) at 1– Library Services. Science Foundation, 2415 Eisenhower Avenue, Alexandria, VA 22314; 800–877–8339 between 8:00 a.m. and Title: Maker/STEM Education Telephone: (703) 292–8400. 8:00 p.m., Eastern time, Monday Support for 21st Century Community through Friday. Purpose of Meeting: The Advisory Learning Centers Program Evaluation. SUPPLEMENTARY INFORMATION: Committee for the Directorate for OMB Control Number: 3137–0108. Title of Collection: Higher Education Biological Sciences (BIO) provides Agency Number: 3137. Research and Development Survey advice, recommendations, and oversight OMB Approval Number: 3145–0100. Respondents/Affected Public: concerning major program emphases, Expiration Date of Current Approval: Museum staff, 21st CCLC staff, and 21st directions, and goals for the research- , 2022. CCLC youth participants. related activities of the divisions that Type of Request: Intent to Amend a make up BIO. Total Estimated Number of Annual Current Information Collection. Respondents: 115. Agenda: Agenda items will include a Abstract: Established within NSF by directorate business update, status the America COMPETES Frequency of Response: One-time update on the research community’s Reauthorization Act of 2010 § 505, collection anticipated. adaptations to the COVID–19 pandemic, codified in the NSF Act of 1950, as Average Minutes per Response: Adult BIO’s recent investments in integration amended, NCSES—one of 13 principal surveys: 20 minutes; adult interviews: across the biological sciences, a joint federal statistical agencies—serves as a 45 minutes; youth interviews: 10 session on strategies for broadening central Federal clearinghouse for the minutes. participation with the Committee on collection, interpretation, analysis, and Total Estimated Number of Annual Equal Opportunities in Science and dissemination of objective data on Burden Hours: 51 hours. Engineering, discussion with the NSF science, engineering, technology, and research and development for use by Cost Burden (dollars): To be Director, and BIO’s investments in collections. practitioners, researchers, policymakers, determined. and the public. Public Comments Invited: Comments Dated: September 29, 2020. The Higher Education Research and submitted in response to this notice will Crystal Robinson, Development (R&D) Survey (formerly be summarized and/or included in the Committee Management Officer. known as the Survey of R&D request for OMB’s clearance of this [FR Doc. 2020–21852 Filed 10–1–20; 8:45 am] Expenditures at Universities and information collection. BILLING CODE 7555–01–P Colleges) originated in fiscal year (FY)

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1954 and has been conducted annually engineering workforce, and U.S. R&D SUMMARY: The Nuclear Regulatory since FY 1972. The survey represents competitiveness. Commission (NRC) has announced one facet of the research and Expected respondents: The R&D appointments to the NRC Performance development component of NCSES’s personnel questions will only appear on Review Board (PRB) responsible for statistical program, which includes R&D the HERD standard form that is making recommendations on surveys on the business, federal administered to approximately 650 performance appraisal ratings and government, higher education, state institutions reporting at least $1 million performance awards for NRC Senior government, and nonprofit sectors. in R&D in the previous year. Neither the Executives and Senior Level System NCSES proposes amending the survey HERD short form respondents (those employees and appointments to the to collect new information on R&D reporting at least $150 thousand but less NRC PRB Panel responsible for making personnel. Details are below. than $1 million), nor the Federally recommendations to the appointing and Description of New Information: The Funded Research and Development awarding authorities for NRC PRB Higher Education R&D Survey is one of Centers (FFRDCs), will receive these members. several surveys at NCSES that collect questions. DATES: October 2, 2020. comparable information on R&D from Estimate of burden: Since many ADDRESSES: Please refer to Docket ID different sectors of the economy (e.g., institutions will need to create new NRC–2020–0212 when contacting the businesses, nonprofits, government). internal reports to assemble these data NRC about the availability of However, it does not currently collect as and calculate the full-time equivalents, information regarding this document. much information about the personnel the average burden is estimated to You may obtain publicly-available carrying out R&D activities as some of increase by 10 hours (to a total of 64 information related to this document the other NCSES R&D sector surveys, hours per institution) for the using any of the following methods: making it less useful for measurements approximately 650 institutions reporting • Federal Rulemaking website: Go to of the R&D workforce in the United at least $1 million in R&D expenditures. https://www.regulations.gov and search States. NCSES intends to address this This estimate is based on 32 interviews for Docket ID NRC–2020–0212. Address shortcoming by collecting data on the with 16 respondents conducted over questions about Docket IDs in number (headcounts) of R&D personnel two rounds between April and July Regulations.gov to Jennifer Borges; by function, and the number of full-time 2020. telephone: 301–287–9127; email: equivalents (FTEs) by R&D function. Comments: Comments are invited on [email protected]. For technical These specific data are not available (a) whether the proposed addition to the questions, contact the individual listed through other NCSES or federal surveys. collection of information is necessary in the FOR FURTHER INFORMATION NCSES intends to revise the current for the proper performance of the CONTACT section of this document question on R&D personnel headcounts functions of the Agency, including and add a question on the number of • NRC’s Agencywide Documents whether the information shall have full-time equivalents for those personnel Access and Management System practical utility; (b) the accuracy of the to the HERD questionnaire. The revised (ADAMS): You may obtain publicly- Agency’s estimate of the burden of the question will collect headcounts on available documents online in the proposed collection of information; (c) three categories of R&D personnel ADAMS Public Documents collection at ways to enhance the quality, utility, and (researchers, R&D technicians, R&D https://www.nrc.gov/reading-rm/ clarity of the information on support staff) by sex and citizenship. adams.html. To begin the search, select respondents, including through the use Headcounts of researchers will also be ‘‘Begin Web-based ADAMS Search.’’ For of automated collection techniques or collected by highest level of education problems with ADAMS, please contact other forms of information technology; completed. The previous version of the the NRC’s Public Document Room question collected headcounts for two and (d) ways to minimize the burden of reference staff at 1–800–397–4209, 301– categories: principal investigators and the collection of information on those 415–4737, or by email to pdr.resource@ all other personnel, without who are to respond, including through nrc.gov. the use of appropriate automated, demographics. NCSES decided to make FOR FURTHER INFORMATION CONTACT: electronic, mechanical, or other the revised personnel headcount Mary A. Lamary, Secretary, Executive question confidential and only publish technological collection techniques or other forms of information technology. Resources Board, U.S. Nuclear these data in the aggregate because some Regulatory Commission, Washington, institutions expressed reluctance to Dated: September 25, 2020. DC 20555–0001; telephone: 301–415– publish detailed demographics on Suzanne H. Plimpton, 3300, email: [email protected]. employees and students. The Reports Clearance Officer, National Science SUPPLEMENTARY INFORMATION: The subsequent new question will collect Foundation. following individuals appointed as the full-time equivalents of the R&D [FR Doc. 2020–21808 Filed 10–1–20; 8:45 am] members of the NRC PRB are personnel accounted for in the revised BILLING CODE 7555–01–P responsible for making R&D personnel headcount question. recommendations to the appointing and Use of the New Information: The awarding authorities on performance United States is the only Organisation appraisal ratings and performance for Economic Co-operation and NUCLEAR REGULATORY awards for Senior Executives and Senior Development (OECD) member country COMMISSION Level System employees: that does not report higher education sector FTEs as published in the OECD’s [NRC–2020–0212] Margaret M. Doane, Executive Director for Main Science and Technology Operations Indicators report. These new R&D Performance Review Boards for Senior Marian L. Zobler, General Counsel Executive Service Daniel H. Dorman, Deputy Executive Director personnel variables will allow NCSES to for Reactor and Preparedness Programs, provide internationally comparable AGENCY: Nuclear Regulatory Office of the Executive Director for information not available elsewhere to Commission. Operations data users interested in science policy, ACTION: Appointments. Laura A. Dudes, Regional Administrator, the nature of the science and Region-II

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Brian E. Holian, Director, Office of Nuclear NRC about the availability of among other things, that the facility is Security and Incident Response information regarding this document. subject to all rules, regulations, and John W. Lubinski, Director, Office of Nuclear You may obtain publicly-available orders of the U.S. Nuclear Regulatory Materials and Safety Safeguards Commission (NRC, the Commission) Nader L. Mamish, Director, Office of information related to this document International Programs using any of the following methods: now or hereafter in effect. The Indian Jennifer M. Golder, Director, Office of • Federal Rulemaking Website: Go to Point 2 and 3 facility consists of two Administration https://www.regulations.gov and search pressurized-water reactors located in Ho K. Nieh, Director, Office of Nuclear for Docket ID NRC–2020–0205. Address Buchanan, New York. Reactor Regulation questions about NRC docket IDs in By letter dated , 2017 Darrell J. Roberts, Deputy Executive Director Regulations.gov to Jennifer Borges; (Agencywide Documents Access and for Materials, Waste, Research, State, telephone: 301–287–9127; email: Management System (ADAMS) Tribal, Compliance, Administration, and Accession No. ML17044A004), Entergy Human Capital Programs, Office of the [email protected]. For technical Executive Director for Operations questions, contact the individual listed submitted a Notification of Permanent Cherish K. Johnson, Chief Financial Officer in the FOR FURTHER INFORMATION Cessation of Power Operations for CONTACT section of this document. Indian Point 2 and 3. In the letter, The following individuals will serve • Entergy provided notification to the as members of the NRC PRB Panel that NRC’s Agencywide Documents Access and Management System NRC of its intent to permanently cease was established to review appraisals power operations at Indian Point 2 no and make recommendations to the (ADAMS): You may obtain publicly- available documents online in the later than April 30, 2020, and at Indian appointing and awarding authorities for Point 3 no later than April 30, 2021, NRC PRB members: ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/ subject to operating extensions through, Brooke P. Clark, Director, Deputy General adams.html. To begin the search, select but not beyond, 2024 and 2025, Counsel for Hearings and Administration ‘‘Begin Web-based ADAMS Search.’’ For respectively. Raymond V. Furstenau, Director, Office of By letter dated May 12, 2020 (ADAMS Nuclear Regulatory Research problems with ADAMS, please contact the NRC’s Public Document Room Accession No. ML20133J902), Entergy David Lew, Regional Administrator, Region- certified that power operations ceased at I reference staff at 1–800–397–4209, 301– Indian Point 2 on April 30, 2020, and All appointments are made pursuant 415–4737, or by email to pdr.resource@ nrc.gov. The ADAMS accession number that the fuel was permanently removed to Section 4314 of Chapter 43 of Title from the Indian Point 2 reactor vessel 5 of the United States Code. for each document referenced (if it is available in ADAMS) is provided the and placed in the Indian Point 2 spent Dated: September 29, 2020. first time that it is mentioned in this fuel pool (SFP) on May 12, 2020. For the Nuclear Regulatory Commission. document. Entergy further acknowledged that the Miriam L. Cohen, Indian Point 2 Title 10 of the Code of Secretary, Executive Resources Board. FOR FURTHER INFORMATION CONTACT: Federal Regulations (10 CFR) Part 50 [FR Doc. 2020–21795 Filed 10–1–20; 8:45 am] Richard V. Guzman, Office of Nuclear license no longer authorizes operation Reactor Regulation, U.S. Nuclear BILLING CODE 7590–01–P of the reactor or emplacement or Regulatory Commission, Washington, retention of fuel into the reactor vessel. DC 20555–0001; telephone: 301–415– However, the licensee is still authorized NUCLEAR REGULATORY 1030, email: [email protected]. to possess and store irradiated nuclear COMMISSION SUPPLEMENTARY INFORMATION: The text of fuel for Indian Point. Irradiated fuel is the exemption is attached. currently being stored onsite in a spent [Docket Nos. 50–247 and 50–286; NRC– fuel pool (SFP) and in independent 2020–0205] Dated: September 29, 2020. spent fuel storage installation (ISFSI) For the Nuclear Regulatory Commission. dry casks. The irradiated fuel will be Entergy Nuclear Operations, Inc.; Richard V. Guzman, Indian Point Nuclear Generating Unit stored in the ISFSI until it is shipped off Senior Project Manager, Plant Licensing Nos. 2 and 3 site. With the reactor emptied of fuel, Branch I, Division of Operating Reactor the reactor, reactor coolant system, and AGENCY: Nuclear Regulatory Licensing, Office of Nuclear Reactor secondary system is no longer in Regulation. Commission. operation and has no function related to ACTION: Exemption; issuance. Attachment—Exemption the safe storage and management of irradiated fuel. Once Entergy certifies SUMMARY: The U.S. Nuclear Regulatory NUCLEAR REGULATORY COMMISSION that it has permanently defueled the Commission (NRC) has issued a partial Indian Point 3 reactor vessel and placed exemption in response to the October Docket Nos. 50–247 and 50–286 the fuel in the SFP, pursuant to 10 CFR 22, 2019, request from Entergy Nuclear Entergy Nuclear Operations, Inc. 50.82(a)(2), the Indian Point 3 renewed Operations, Inc. (Entergy, the licensee). facility operating license will no longer The issuance of the exemption will Indian Point Nuclear Generating Unit authorize operation of the reactor or grant Entergy a partial exemption from Nos. 2 and 3 emplacement or retention of fuel in the regulations that require the retention of Exemption Related to Record Retention reactor vessel. records for certain systems, structures, Requirements and components associated with Indian II. Request/Action Point Nuclear Generating Unit Nos. 2 I. Background By letter dated October 22, 2019 and 3 (Indian Point 2 and 3) until the Entergy Nuclear Operations, Inc. (ADAMS Accession No. ML19295F894), termination of the respective Indian (Entergy, the licensee) is the holder of Entergy submitted a partial exemption Point operating license. Renewed Facility Operating License request for NRC approval from the DATES: The exemption was issued on Nos. DPR–26 and DPR–64 for Indian record retention requirements of (1) 10 September 28, 2020. Point Nuclear Generating Unit Nos. 2 CFR part 50, Appendix B, Criterion ADDRESSES: Please refer to Docket ID and 3 (Indian Point 2 and 3, or together, XVII, ‘‘Quality Assurance Records,’’ NRC–2020–0205 when contacting the Indian Point). The licenses provide, which requires certain records (e.g.,

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results of inspections, tests, and other requirements of 10 CFR part 50 Entergy’s general justification for materials analyses) be maintained applicable to decommissioning and eliminating records associated with consistent with applicable regulatory dismantlement. Indian Point SSCs that have been or will requirements; (2) 10 CFR 50.59(d)(3), be removed from service under the NRC III. Discussion which requires that records of changes license, dismantled, or demolished is in the facility must be maintained until Pursuant to 10 CFR 50.12, the that these SSCs will not in the future termination of a license issued pursuant Commission may, upon application by serve any Indian Point functions to 10 CFR part 50; and (3) 10 CFR any interested person or upon its own regulated by the NRC. The 50.71(c), which requires certain records initiative, grant exemptions from the decommissioning plans for Indian Point to be retained for the period specified by requirements of 10 CFR part 50 when are described in the Post-Shutdown the appropriate regulation, license the exemptions are authorized by law, Decommissioning Activities Report condition, or technical specification, or will not present an undue risk to public dated , 2019 (ADAMS until termination of the license if not health or safety, and are consistent with Accession No. ML19354A698) and are otherwise specified. the common defense and security. contingent on the consummation of the The licensee requested the partial However, the Commission will not pending license transfer (ADAMS exemptions because it wants to consider granting an exemption unless Accession No. ML19326B953). The eliminate: (1) Records associated with special circumstances are present. proposed decommissioning process structures, systems, and components Special circumstances are described in involves evaluating SSCs with respect to (SSCs) and activities that were 10 CFR 50.12(a)(2). the current facility safety analysis; applicable to the nuclear unit, which are Many of the Indian Point reactor progressively removing them from the no longer required by the 10 CFR part facility SSCs are planned to be licensing basis where necessary through 50 licensing basis (i.e., removed from abandoned in place pending appropriate change mechanisms (e.g., 10 the Updated Final Safety Analysis dismantlement. Abandoned SSCs are no CFR 50.59 or by NRC-approved Report (UFSAR) and/or technical longer operable or maintained. technical specification changes, as specifications by appropriate change Following permanent removal of fuel applicable); revising the defueled safety mechanisms); and (2) records associated from the SFP, those SSCs required to analysis report and/or UFSAR as with the storage of spent nuclear fuel in support safe storage of spent fuel in the the SFP once all fuel has been removed necessary; and then proceeding with an SFP will also be abandoned. In its orderly dismantlement. from the SFP and the Indian Point October 22, 2019, partial exemption Entergy intends to retain the records license no longer allows storage of fuel request, the licensee stated that the basis required by its license as the facility’s in the SFP. The licensee cites record for eliminating records associated with decommissioning transitions. However, retention partial exemptions granted to reactor facility SSCs and activities is Millstone Power Station, Unit 1 that these SSCs have been (or will be) equipment abandonment will obviate (ADAMS Accession No. ML070110567); removed from service per regulatory the regulatory and business needs for Zion Nuclear Power Station, Units 1 and change processes, will be dismantled or maintenance of most records. As the 2 (ADAMS Accession No. demolished, and will no longer have SSCs are removed from the licensing ML111260277); Vermont Yankee any function regulated by the NRC. basis, Entergy asserts that the need for Nuclear Power Station (ADAMS its records is, on a practical basis, The licensee recognizes that some Accession No. ML15344A243); San eliminated. Therefore, Entergy is records related to the nuclear unit will Onofre Nuclear Generating Station, requesting partial exemptions from the Units 1, 2, and 3 (ADAMS Accession continue to be under NRC regulation, primarily due to residual radioactivity. associated records retention No. ML15355A055); Kewaunee Power requirements for SSCs and historical Station (ADAMS Accession No. The radiological and other necessary programmatic controls (such as security, activities that are no longer relevant. ML17069A394); Oyster Creek Nuclear Entergy is not requesting exemptions Generating Station (ADAMS Accession quality assurance, etc.) for the facility and the implementation of controls for from any recordkeeping requirements No. ML18122A306); and Pilgrim for storage of spent fuel at an ISFSI Nuclear Power Station (ADAMS the defueled condition and the decommissioning activities are and will under 10 CFR part 50 or the general Accession No. ML19087A152), as license requirements of 10 CFR part 72. examples of the NRC granting similar continue to be appropriately addressed requests. through the license and current plant A. Authorized by Law Records associated with residual documents, such as the UFSAR and radiological activity and with technical specifications. Except for As stated above, 10 CFR 50.12 allows programmatic controls necessary to future changes made through the the NRC to grant exemptions from 10 support decommissioning, such as applicable change process defined in CFR part 50 requirements if it makes security and quality assurance, are not the regulations (e.g., 10 CFR 50.48(f), 10 certain findings. As described in this affected by the partial exemption CFR 50.59, 10 CFR 50.90, 10 CFR section and in the sections below, the request because they will be retained as 50.54(a), 10 CFR 50.54(p), 10 CFR NRC staff has determined that special decommissioning records, as required 50.54(q), etc.), these programmatic circumstances exist to grant the partial by 10 CFR part 50, until the termination elements and their associated records exemptions. In addition, granting the of the Indian Point license. In addition, are unaffected by the requested partial licensee’s proposed partial exemptions the licensee did not request an exemption. will not result in a violation of the exemption associated with any other Records necessary for SFP SSCs and Atomic Energy Act of 1954, as amended; recordkeeping requirements for the activities will continue to be retained other laws, or the Commission’s storage of spent fuel at its ISFSI under through the period that the SFP is regulations. Therefore, the granting of 10 CFR part 50 or the general license needed for safe storage of irradiated the partial exemption request from the requirements of 10 CFR part 72. No fuel. Analogous to other plant records, recordkeeping requirements of 10 CFR exemption was requested from the once the SFP is permanently emptied of 50.71(c); 10 CFR part 50, Appendix B, decommissioning records retention fuel, there will be no need to retain SFP- Criterion XVII; and 10 CFR 50.59(d)(3) requirements of 10 CFR 50.75 or any related records. is authorized by law.

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B. No Undue Risk to Public Health and 50.71(c); 10 CFR part 50, Appendix B, licensing basis requires either a Safety Criterion XVII; and 10 CFR 50.59(d)(3) determination by the licensee or an As SSCs are prepared for safe storage for the types of records described is approval from the NRC that the SSC no operation activities and eventual consistent with the common defense longer has the potential to cause an decommissioning and dismantlement, and security. accident, event, or other problem that would adversely impact public health they will be removed from NRC D. Special Circumstances licensing basis documents through and safety. Paragraph 50.12(a)(2) of 10 CFR states, The records subject to removal under appropriate change mechanisms, such in part: this partial exemption request are as through the 10 CFR 50.59 process or associated with SSCs that had been through a license amendment request The Commission will not consider granting an exemption unless special circumstances important to safety during power approved by the NRC. These change operation or operation of the SFP, but processes involve either a determination are present. Special circumstances are present whenever— . . . (ii) Application of are no longer capable of causing an by the licensee or an approval from the the regulation in the particular circumstances event, incident, or condition that would NRC that the affected SSCs no longer would not serve the underlying purpose of adversely impact public health and serve any safety purpose regulated by the rule or is not necessary to achieve the safety, as evidenced by their appropriate the NRC. Therefore, the removal of the underlying purpose of the rule; or (iii) removal from the licensing basis SSCs would not present an undue risk Compliance would result in undue hardship documents. If the SSCs no longer have to the public health and safety. In turn, or other costs that are significantly in excess the potential to cause these scenarios, elimination of records associated with of those contemplated when the regulation was adopted.... then it is reasonable to conclude that the these removed SSCs would not cause records associated with these SSCs any additional impact to public health Criterion XVII of Appendix B to 10 would not reasonably be necessary to and safety. CFR part 50, states, in part: ‘‘Sufficient assist the NRC in determining The granting of the partial exemption records shall be maintained to furnish compliance and noncompliance, taking request from the recordkeeping evidence of activities affecting quality.’’ action on possible noncompliance, and requirements of 10 CFR 50.71(c); 10 CFR Paragraph 50.59(d)(3) of 10 CFR examining facts following an incident. part 50, Appendix B, Criterion XVII; and states, in part: ‘‘The records of changes Therefore, their retention would not 10 CFR 50.59(d)(3) for the records in the facility must be maintained until serve the underlying purpose of the described is administrative in nature the termination of an operating license rule. and will have no impact on any issued under this part. . . .’’ In addition, once removed from the remaining decommissioning activities Paragraph 50.71(c) of 10 CFR states, in licensing basis documents (e.g., UFSARs or on radiological effluents. The part: or technical specifications), SSCs are no granting of the partial exemption Records that are required by the longer governed by the NRC’s request will only advance the schedule regulations in this part or part 52 of this regulations, and therefore, are not for disposition of the specified records. chapter, by license condition, or by technical subject to compliance with the safety Because these records contain specifications must be retained for the period and health aspects of the nuclear information about SSCs associated with specified by the appropriate regulation, environment. As such, retention of reactor operation and contain no license condition, or technical specification. records associated with SSCs that are or information needed to maintain the If a retention period is not otherwise will no be longer part of the facility facility in a safe condition when the specified, these records must be retained serve no safety or regulatory purpose, facility is permanently defueled and the until the Commission terminates the facility license.... nor do they serve the underlying SSCs are dismantled, the elimination of purpose of the rule of maintaining these records on an advanced timetable In the Statement of Considerations for compliance with the safety and health will have no reasonable possibility of the final rulemaking, ‘‘Retention Periods aspects of the nuclear environment in presenting any undue risk to the public for Records’’ (53 FR 19240; May 27, order to accomplish the NRC’s mission. health and safety. 1988), in response to public comments Accordingly, special circumstances are received during the rulemaking process, present which the NRC may consider, C. Consistent With the Common Defense the NRC stated that records must be and Security pursuant to 10 CFR 50.12(a)(2)(ii), to retained ‘‘for NRC to ensure compliance grant the requested partial exemptions. The elimination of the recordkeeping with the safety and health aspects of the Records that continue to serve the requirements does not involve nuclear environment and for the NRC to underlying purpose of the rule—that is, information or activities that could accomplish its mission to protect the to maintain compliance and to protect potentially impact the common defense public health and safety.’’ In the public health and safety in support of and security of the United States. Upon Statement of Considerations, the the NRC’s mission—will continue to be dismantlement of the affected SSCs, the Commission also explained that retained pursuant to the regulations in records have no functional purpose requiring licensees to maintain adequate 10 CFR part 50 and 10 CFR part 72. relative to maintaining the safe records assists the NRC ‘‘in judging Retained records that are not subject to operation of the SSCs, maintaining compliance and noncompliance, to act the proposed partial exemption include conditions that would affect the ongoing on possible noncompliance, and to those associated with programmatic health and safety of workers or the examine facts as necessary following controls, such as those pertaining to public, or informing decisions related to any incident.’’ residual radioactivity, security, and nuclear security. These regulations apply to licensees quality assurance, as well as records Rather, the partial exemptions in decommissioning. During the associated with the ISFSI and spent fuel requested are administrative in nature decommissioning process, safety-related assemblies. and would only advance the current SSCs are retired or disabled and The retention of records required by schedule for disposition of the specified subsequently removed from NRC 10 CFR 50.71(c); 10 CFR part 50, records. Therefore, the partial licensing basis documents by Appendix B, Criterion XVII; and 10 CFR exemption request from the appropriate change mechanisms. 50.59(d)(3) provides assurance that recordkeeping requirements of 10 CFR Appropriate removal of an SSC from the records associated with SSCs will be

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captured, indexed, and stored in an since most previously analyzed public or occupational radiation environmentally suitable and retrievable accidents will no longer be able to exposure. condition. Given the volume of records occur, and the probability and The exempted regulations are not associated with the SSCs, compliance consequences of the remaining fuel associated with construction, so there is with the records retention rule results in handling accident are unaffected by the no significant construction impact. The a considerable cost to the licensee. partial exemption request. Therefore, exempted regulations do not concern Retention of the volume of records the partial exemption request does not the source term (i.e., potential amount associated with the SSCs during the involve a significant increase in the of radiation involved in an accident) or operational phase is appropriate to serve probability or consequences of an accident mitigation; therefore, there is the underlying purpose of determining accident previously evaluated. no significant increase in the potential compliance and noncompliance, taking The partial exemption request does for, or consequences from, radiological action on possible noncompliance and not involve a physical alteration of the accidents. Allowing the licensee partial examining facts following an incident, plant. No new or different type of exemption from the record retention as discussed. equipment will be installed, and there requirements for which the exemption However, the cost effect of retaining are no physical modifications to existing is sought involves recordkeeping operational phase records beyond the equipment associated with the partial requirements, as well as reporting operations phase until the termination exemption request. Similarly, the partial requirements of an administrative, of the license was not fully considered exemption request will not physically managerial, or organizational nature. or understood when the records change any SSCs involved in the Therefore, pursuant to 10 CFR retention rule was put in place. For mitigation of any accidents. Thus, no 51.22(b) and 10 CFR 51.22(c)(25)(vi)(A), example, existing records storage new initiators or precursors of a new or no environmental impact statement or facilities are eliminated as different kind of accident are created. environmental assessment need be decommissioning progresses. Retaining Furthermore, the partial exemption prepared in connection with the records associated with SSCs and request does not create the possibility of approval of this partial exemption activities that no longer serve a safety or a new accident as a result of new failure request. regulatory purpose would, therefore, modes associated with any equipment result in an unnecessary financial and or personnel failures. No changes are IV. Conclusions administrative burden. As such, being made to parameters within which The NRC staff has determined that the compliance with the rule would result the plant is normally operated or in the granting of the partial exemption in an undue cost in excess of that setpoints that initiate protective or request from the recordkeeping contemplated when the rule was mitigative actions, and no new failure requirements of 10 CFR 50.71(c); 10 CFR adopted. Accordingly, special modes are being introduced. Therefore, part 50, Appendix B, Criterion XVII; and circumstances are present, which the the partial exemption request does not 10 CFR 50.59(d)(3) will not present an NRC may consider, pursuant to 10 CFR create the possibility of a new or undue risk to the public health and 50.12(a)(2)(iii), to grant the partial different kind of accident from any safety. The destruction of the identified exemption request. accident previously evaluated. records will not impact remaining E. Environmental Considerations The partial exemption request does decommissioning activities; plant Pursuant to 10 CFR 51.22(b) and not alter the design basis or any safety operations, configuration, and/or (c)(25), the granting of an exemption limits for the plant. The partial radiological effluents; operational and/ from the requirements of any regulation exemption request does not impact or installed SSCs that are quality-related in Chapter I of 10 CFR meets the station operation or any plant SSC that or important to safety; or nuclear eligibility criteria for categorical is relied upon for accident mitigation. security. The NRC staff determined that exclusion provided that (1) there is no Therefore, the partial exemption request the destruction of the identified records significant hazards consideration, (2) does not involve a significant reduction is administrative in nature and does not there is no significant change in the in a margin of safety. involve information or activities that types or significant increase in the For these reasons, the NRC staff has could potentially impact the common amounts of any effluents that may be determined that approval of the partial defense and security of the United released offsite, (3) there is no exemption request involves no States. significant increase in individual or significant hazards consideration The purpose for the recordkeeping cumulative public or occupational because granting the licensee’s partial regulations is to assist the NRC in radiation exposure, (4) there is no exemption request from the carrying out its mission to protect the significant construction impact, (5) recordkeeping requirements of 10 CFR public health and safety by ensuring there is no significant increase in the 50.71(c); 10 CFR part 50, Appendix B, that the licensing and design basis of the potential for or consequences from Criterion XVII; and 10 CFR 50.59(d)(3) facility is understood, documented, radiological accidents, and (6) the at the decommissioning Indian Point preserved, and retrievable in such a way requirements from which an exemption does not (1) involve a significant that will aid the NRC in determining is sought are among those identified in increase in the probability or compliance and noncompliance, taking 10 CFR 51.22(c)(25)(vi). consequences of an accident previously action on possible noncompliance, and The partial exemption request is evaluated, (2) create the possibility of a examining facts following an incident. administrative in nature. The partial new or different kind of accident from Since the Indian Point SSCs that were exemption request has no effect on SSCs any accident previously evaluated, or safety-related or important to safety and no effect on the capability of any (3) involve a significant reduction in a have been or will be removed from the plant SSC to perform its design margin of safety (10 CFR 50.92(c)). licensing basis and removed from the function. The partial exemption request Likewise, there is no significant change plant, the NRC staff has determined that would not increase the likelihood of the in the types or significant increase in the records identified in the partial malfunction of any plant SSC. The the amounts of any effluents that may be exemption request will no longer be probability of occurrence of previously released offsite and no significant required to achieve the underlying evaluated accidents is not increased, increase in individual or cumulative purpose of the records retention rule.

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Accordingly, the Commission has reactivate the U.S. EPR review. NUCLEAR REGULATORY determined that, pursuant to 10 CFR Framatome further committed to COMMISSION 50.12, the partial exemptions are providing an update to the required Docket No. 52–020 authorized by law, will not present an report, or taking other appropriate undue risk to the public health and action, as necessary, no later than Framatome Inc. safety, and are consistent with the December 31, 2024. Staff review of the Application for Standard Design common defense and security. Also, U.S. EPR standard design certification Certification of the U.S. EPR special circumstances are present. application was suspended in April Therefore, the Commission hereby 2015 at the request of the applicant. The I. Background grants Entergy a partial exemption from NRC staff reviewed this request and By letter dated December 11, 2007, the recordkeeping requirements of 10 determined that it is appropriate to Areva NP Inc. (Areva) (now Framatome CFR 50.71(c); 10 CFR part 50, Appendix grant the exemption in accordance with Inc.(Framatome)) submitted to the NRC B, Criterion XVII; and 10 CFR the regulations as the request does not an application for standard design 50.59(d)(3) for Indian Point, only to the present an undue risk to public health certification of the U.S. EPR (ADAMS extent necessary to allow the licensee to or safety and is consistent with the Accession No. ML073520305). advance the schedule to remove records common defense and security; Following an acceptance review, the associated with SSCs that have been or furthermore, special circumstances NRC docketed the application (Docket will be removed from NRC licensing exist. No. 52–020) in a letter dated February basis documents by appropriate change 25, 2008 (ADAMS Accession No. mechanisms (e.g., 10 CFR 50.59 or by an DATES: The exemption is effective on September 29, 2020. ML080380357). By letter dated July 17, NRC-approved license amendment 2014 (ADAMS Accession No. request, as applicable). ADDRESSES: Please refer to Docket ID ML14209A053), Areva submitted This partial exemption is effective for NRC–2020–0182 when contacting the Revision 7 to the standard design Indian Point 2 as of the date of its NRC about the availability of certification application. By letter dated issuance; however, the actions information regarding this document. , 2015 (ADAMS Accession permitted by the exemption for Indian You may obtain publicly-available No. ML15061A130), Areva requested Point 3 may not be implemented until information related to this document that the NRC suspend review of the U.S. the docketing of the licensee’s using any of the following methods: EPR standard design certification • certification of permanent cessation of Federal Rulemaking Website: Go to application. By letter dated June 30, operations and permanent removal of https://www.regulations.gov and search 2020 (ADAMS Accession No. fuel from the Indian Point 3 reactor for Docket ID NRC–2020–0182. Address ML20188A219), Framatome requested vessel pursuant to 10 CFR 50.82(a)(1). questions about Docket IDs in Dated: September 28, 2020. an exemption from the annual reporting Regulations.gov to Jennifer Borges; requirements of 10 CFR 50.46(a)(3)(iii) For the Nuclear Regulatory Commission. telephone: 301–287–9127; email: stating in part that ‘‘. . . given that the Craig G. Erlanger, [email protected]. For technical NRC’s review of the U.S. EPR DCA Director, Division of Operating Reactor questions, contact the individual listed [design certification application] has Licensing. in the FOR FURTHER INFORMATION been suspended and remains [FR Doc. 2020–21858 Filed 10–1–20; 8:45 am] CONTACT section of this document. suspended, Framatome requests an BILLING CODE 7590–01–P • NRC’s Agencywide Documents exemption from the requirement to Access and Management System submit annual reports required by 10 (ADAMS): You may obtain publicly- CFR 50.46(a)(3)(iii) for the next five NUCLEAR REGULATORY available documents online in the years (2020–2024).’’ COMMISSION ADAMS Public Documents collection at II. Request/Action [Docket No. 52–020; NRC–2020–0182] https://www.nrc.gov/reading-rm/ adams.html. To begin the search, select Section 50.46(a)(1)(i) in part provides Framatome Inc.; Application for ‘‘Begin Web-based ADAMS Search.’’ For requirements for models used in Standard Design Certification of the problems with ADAMS, please contact calculations regarding ECCS U.S. EPR the NRC’s Public Document Room performance following postulated loss reference staff at 1–800–397–4209, 301– AGENCY: of coolant accidents. Section Nuclear Regulatory 415–4737, or by email to pdr.resource@ Commission. 50.46(a)(3)(iii) requires that an applicant nrc.gov. for a standard design certification report ACTION: Exemption; issuance. FOR FURTHER INFORMATION CONTACT: any change or error found in such ECCS SUMMARY: The U.S. Nuclear Regulatory George Wunder, Senior Project Manager, performance models, including the Commission (NRC) is issuing an Office of Nuclear Reactor Regulation, nature of the change or error and its exemption in response to a June 30, U.S. Nuclear Regulatory Commission, estimated effect on the limiting ECCS 2020, letter from Framatome Inc. Washington, DC 20555–0001; telephone: analysis, at least annually. (Framatome), which requested an 301–415–1494; email: George.Wunder@ In a letter dated June 30, 2020 exemption from regulatory requirements nrc.gov. (ADAMS Accession No. ML20188A219), regarding the annual reports required by Framatome requested an exemption SUPPLEMENTARY INFORMATION: The text of regulations (hereafter ‘‘required report’’) the exemption is attached. from the reporting requirements of 10 for the U.S. EPR standard design CFR 50.46(a)(3)(iii) for the years 2020– certification application for the years Dated: September 29, 2020. 2024. Framatome has committed to 2020–2024. The regulation for which For the Nuclear Regulatory Commission. submit the required report before exemption is sought covers emergency Anna H. Bradford, requesting to reactivate the U.S. EPR core cooling systems (ECCS) for light- Director, Division of New and Renewed review. They have committed to water nuclear power reactors. Licenses, Office of Nuclear Reactor updating the required report, or taking Framatome committed to submit the Regulation. other appropriate action, no later than required report before any request to Attachment—Exemption. December 31, 2024.

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III. Discussion requested exemption is administrative and estimated effect of errors or changes Pursuant to 10 CFR 50.12, the and deals only with the schedule for in the limiting ECCS analysis. A Commission may, upon application by reports which would not be reviewed. thorough understanding of ECCS any interested person or upon its own Because the exemption applies only to performance is critical to the staff’s initiative, grant exemptions from the an application, not to a licensed entity, review; however, since review of the requirements of 10 CFR part 50, this exemption has no safety U.S. EPR standard design certification including 10 CFR 50.46(a)(3)(iii), when: implications and introduces nothing application has been suspended at the (1) The exemptions are authorized by that could adversely impact public applicant’s request, any report filed law, will not present an undue risk to health. Under the proposed exemption, under 10 CFR 50.46 would not be any further review of the U.S. EPR public health or safety, and are reviewed until such time as the design standard design certification application consistent with the common defense certification review is reactivated. will not resume until Framatome and security; and (2) special Framatome has committed to submit the submits the required report. The request circumstances are present. As relevant required report before requesting that for an exemption has no bearing on to the requested exemption, special the NRC reactivate its review of the public health and safety and, therefore, circumstances exist if (1) application of design certification. Submitting a report poses no undue risk to public health the regulation in the particular under 50.46(a)(3)(iii) before the and safety. Design certification cannot circumstances would not serve the resumption of any review of the design occur until the NRC’s review of the underlying purpose of the rule or is not certification is sufficient to meet the application is completed and a final underlying intent of the regulation. necessary to achieve the underlying safety evaluation report is issued. purpose of the rule (10 CFR Submitting annual reports for the years Additionally, based on the nature of the 2020–2024 while the review is 50.12(a)(2)(ii)), or (2) compliance would requested exemption as described result in undue hardship or other costs suspended is not necessary to meet the above, no new accident precursors are underlying intent of the regulation. that are significantly in excess of those created by the exemption; therefore, The preparation of reports required by contemplated when the regulation was neither the probability nor the 10 CFR 50.46(a)(3)(iii) is time adopted, or that are significantly in consequences of postulated accidents consuming and requires resources to excess of those incurred by others are increased and there is no undue risk review and document the condition similarly situated (10 CFR to public health and safety. 50.12(a)(2)(iii)). reports for any change to or error in an The purpose of 10 CFR 50.46(a)(3)(iii) Consistent With Common Defense and acceptable evaluation model or in the is to provide timely reporting to the Security application of such a model. It is likely NRC regarding the nature and estimated The requested exemption would that suspension of a standard design effect of any change or error in the relieve Framatome of the requirement to certification review was not anticipated limiting ECCS analysis. Because the submit annual reports required by 10 when the requirements for reporting NRC suspended its review of the U.S. CFR 50.46(a)(3)(iii) for the years 2020– were made. As such, requiring EPR standard design certification 2024. The applicant has committed to Framatome to submit annual 10 CFR application at the applicant’s request, submit a 10 CFR 50.46 report before 50.46 reports that would not be any submittal by Framatome under the submitting any request for the NRC to reviewed would be to subject them to an requirements of 10 CFR 50.46 would not resume reviewing the U.S. EPR design undue hardship that is significantly in be reviewed by the staff until such time certification application and to update excess of those contemplated when the as the design certification review is the required report, or take other regulation was adopted. reactivated. The preparation of a 10 CFR appropriate action, no later than For the above stated reasons, special 50.46 report requires expenditure of December 31, 2024. This schedule circumstances are present under 10 CFR resources by, and cost to, the applicant. change has no relation to security 50.12(a)(2)(ii) and 10 CFR 50.12(2)(iii). Framatome has committed to providing issues; therefore, the common defense Eligibility for Categorical Exclusion from a 10 CFR 50.46 report before any request and security is not impacted. to reactivate the review of the design Environmental Review Special Circumstances certification application. Framatome is With respect to the exemption’s seeking the exemption for the years Special circumstances, in accordance impact on the quality of the human 2020–2024. Framatome has committed with 10 CFR 50.12(a)(2), are present environment, the NRC has determined to updating the 10 CFR 50.46 report or under the circumstances relevant to the that this specific exemption request is taking other appropriate action, as requested exemption. Specifically, eligible for categorical exclusion as necessary, no later than December 31, special circumstances are present if identified in 10 CFR 51.22(c)(25) 2024. application of the regulation in the provided that: particular circumstances would not No Undue Risk to Public Health and serve the underlying purpose of the rule (i) There is no significant hazards Safety or is not necessary to achieve the consideration; The purpose of 10 CFR 50.46(a)(3)(iii) underlying purpose of the rule (10 CFR The criteria for determining whether is to provide for timely notification of 50.12(a)(2)(ii)) or if compliance would there is no significant hazards the nature and estimated effect of any result in undue hardship or other costs consideration are found in 10 CFR errors or changes in the limiting ECCS that are significantly in excess of those 50.92. The proposed action involves analysis. Because the review of the U.S. contemplated when the regulation was only a schedule change regarding the EPR standard design certification adopted, or that are significantly in submission of a report on errors or application has been suspended at the excess of those incurred by others changes in the ECCS analysis for a applicant’s request, any report similarly situated (10 CFR standard design certification application submitted under 10 CFR 50.46 would 50.12(a)(2(iii)). review which is currently suspended. not be reviewed by the staff until such The underlying purpose of 10 CFR Therefore, there is no significant time as the review of the design 50.46(a)(3)(iii) is to ensure that the NRC hazards consideration because granting certification is reactivated. The receives timely notification of the nature the proposed exemption would not:

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(1) Involve a significant increase in the reporting requirements of 10 CFR I. Introduction the probability or consequences of an 50.46(a)(3)(iii) until December 31, 2024. The Commission gives notice that the accident previously evaluated; or This exemption provides that Postal Service filed request(s) for the (2) Create the possibility of a new or Framatome shall submit a report under Commission to consider matters related different kind of accident from any 10 CFR 50.46(a)(3)(iii) before making to negotiated service agreement(s). The accident previously evaluated; or any request that the NRC resume its request(s) may propose the addition or (3) Involve a significant reduction in review of the U.S. EPR standard design removal of a negotiated service a margin of safety. certification application and that agreement from the market dominant or (ii) There is no significant change in Framatome shall update that report or the competitive product list, or the the types or significant increase in the take other appropriate action no later modification of an existing product amounts of any effluents that may be than December 31, 2024. currently appearing on the market released offsite; Pursuant to 10 CFR 51.22, the dominant or the competitive product The proposed action involves only a Commission has determined that the list. schedule change, which is exemption request meets the applicable administrative in nature and does not categorical exclusion criteria set forth in Section II identifies the docket involve any changes to be made in the 10 CFR 51.22(c)(25), and the granting of number(s) associated with each Postal types or significant increase in the this exemption will not have a Service request, the title of each Postal amounts of effluents that may be significant effect on the quality of the Service request, the request’s acceptance released offsite. human environment. date, and the authority cited by the (iii) There is no significant increase in This exemption is effective upon Postal Service for each request. For each individual or cumulative public or issuance. request, the Commission appoints an occupational radiation exposure; officer of the Commission to represent Since the proposed action involves Dated at Rockville, Maryland, this 29th day the interests of the general public in the only a schedule change, which is of September 2020. proceeding, pursuant to 39 U.S.C. 505 administrative in nature, it does not For The Nuclear Regulatory Commission, (Public Representative). Section II also contribute to any significant increase in Anna H. Bradford, establishes comment deadline(s) occupational or public radiation Director, Division of New and Renewed pertaining to each request. exposure. Licenses, Office of Nuclear Reactor The public portions of the Postal (iv) There is no significant Regulation. Service’s request(s) can be accessed via construction impact; [FR Doc. 2020–21811 Filed 10–1–20; 8:45 am] the Commission’s website (http:// The proposed action involves only a BILLING CODE 7590–01–P www.prc.gov). Non-public portions of schedule change which is the Postal Service’s request(s), if any, administrative in nature; the application can be accessed through compliance is for a standard design certification the POSTAL REGULATORY COMMISSION with the requirements of 39 CFR review of which is suspended until 3011.301.1 further notice. No application for [Docket Nos. MC2020–257 and CP2020–287; The Commission invites comments on MC2020–258 and CP2020–288] construction or operation has been filed. whether the Postal Service’s request(s) Accordingly, the proposed action does New Postal Products in the captioned docket(s) are consistent not involve any construction impact. with the policies of title 39. For (v) There is no significant increase in AGENCY: Postal Regulatory Commission. request(s) that the Postal Service states the potential for or consequences from ACTION: Notice. concern market dominant product(s), radiological accidents; applicable statutory and regulatory The proposed action involves only a SUMMARY: The Commission is noticing a requirements include 39 U.S.C. 3622, 39 schedule change which is recent Postal Service filing for the U.S.C. 3642, 39 CFR part 3030, and 39 administrative in nature and does not Commission’s consideration concerning CFR part 3040, subpart B. For request(s) impact the probability or consequences negotiated service agreements. This that the Postal Service states concern of accidents. notice informs the public of the filing, competitive product(s), applicable (vi) The requirements from which an invites public comment, and takes other statutory and regulatory requirements exemption is sought involve: administrative steps. include 39 U.S.C. 3632, 39 U.S.C. 3633, (1) Reporting requirements; DATES: Comments are due: October 6, 39 U.S.C. 3642, 39 CFR part 3035, and The exemption request involves 2020. 39 CFR part 3040, subpart B. Comment submitting a report required by 10 CFR ADDRESSES: Submit comments deadline(s) for each request appear in 50.46(a)(3)(iii); and electronically via the Commission’s section II. (2) Scheduling requirements; The proposed exemption relieves that Filing Online system at http:// II. Docketed Proceeding(s) www.prc.gov. Those who cannot submit applicant from submitting the required 1. Docket No(s).: MC2020–257 and reports for the years 2020–2024. comments electronically should contact the person identified in the FOR FURTHER CP2020–287; Filing Title: USPS Request IV. Conclusion INFORMATION CONTACT section by to Add Priority Mail Contract 665 to Competitive Product List and Notice of Accordingly, the Commission has telephone for advice on filing Filing Materials Under Seal; Filing determined that, pursuant to 10 CFR alternatives. Acceptance Date: September 28, 2020; 50.12(a), the exemption is authorized by FOR FURTHER INFORMATION CONTACT: Filing Authority: 39 U.S.C. 3642, 39 CFR law, will not present an undue risk to David A. Trissell, General Counsel, at 3040.130 through 3040.135, and 39 CFR the public health and safety, and is 202–789–6820. 3035.105; Public Representative: consistent with the common defense SUPPLEMENTARY INFORMATION: and security. Also, special Table of Contents 1 See Docket No. RM2018–3, Order Adopting circumstances are present. Therefore, Final Rules Relating to Non-Public Information, the Commission hereby grants I. Introduction , 2018, Attachment A at 19–22 (Order No. Framatome a one-time exemption from II. Docketed Proceeding(s) 4679).

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Christopher C. Mohr; Comments Due: , 2021. The text of the proposed declared by the primary listing market October 6, 2020. rule change is provided in Exhibit 5. for a security, and before such a trading 2. Docket No(s).: MC2020–258 and halt has officially ended according to II. Self-Regulatory Organization’s CP2020–288; Filing Title: USPS Request the primary listing market.7 Statement of the Purpose of, and to Add Priority Mail Express & Priority Previously, the pilot program and the Statutory Basis for, the Proposed Rule Mail Contract 119 to Competitive current Plan to Address Extraordinary Change Product List and Notice of Filing Market Volatility Pursuant to Rule 608 Materials Under Seal; Filing Acceptance In its filing with the Commission, the of Regulation NMS under the Act (the Date: September 28, 2020; Filing Exchange included statements ‘‘Limit Up-Limit Down Plan’’ or the Authority: 39 U.S.C. 3642, 39 CFR concerning the purpose of and basis for ‘‘LULD Plan’’) were a single pilot 3040.130 through 3040.135, and 39 CFR the proposed rule change and discussed program. On , 2018, the 3035.105; Public Representative: any comments it received on the Commission published the proposed Christopher C. Mohr; Comments Due: proposed rule change. The text of these Eighteenth Amendment to the LULD October 6, 2020. statements may be examined at the Plan to allow the LULD Plan to operate This Notice will be published in the places specified in Item IV below. The on a permanent, rather than pilot, Federal Register. Exchange has prepared summaries, set basis.8 On , 2019, the forth in sections A, B, and C below, of Commission published an approval of Erica A. Barker, the most significant aspects of such the Eighteenth Amendment.9 Secretary. statements. Accordingly, national securities [FR Doc. 2020–21801 Filed 10–1–20; 8:45 am] A. Self-Regulatory Organization’s exchanges filed with the Commission BILLING CODE 7710–FW–P Statement of the Purpose of, and amendments to exchange rules to untie Statutory Basis for, the Proposed Rule the pilot program’s effectiveness from Change that of the LULD Plan in order to SECURITIES AND EXCHANGE provide such exchanges additional time COMMISSION 1. Purpose to consider further amendments, if any, The Exchange proposes to extend the to the clearly erroneous execution rules [Release No. 34–90022; File No. SR–MEMX– in light of the proposed Eighteenth 2020–09] effectiveness of the Exchange’s current rule applicable to Clearly Erroneous Amendment to the LULD Plan.10 Self-Regulatory Organizations; MEMX, Executions to the close of business on On , 2020, MEMX executed and LLC; Notice of Filing and Immediate April 20, 2021. Portions of Rule 11.15, filed with the Commission an amended 11 Effectiveness of a Proposed Rule explained in further detail below, are copy of the LULD Plan. An amended Change to Extend the Current Pilot currently operating as a pilot program and executed copy of the LULD Plan, Program Related to MEMX Rule 11.15, which expired on April 20, 2020.5 with MEMX included as a Party, was Clearly Erroneous Executions On , 2020, the Commission provided to each then current Party to approved MEMX’s Form 1 Application the Plan, in accordance with the September 28, 2020. to register as a national securities requirements for the addition of a new Pursuant to Section 19(b)(1) of the exchange with rules including, on a member to the LULD Plan. Accordingly, Securities Exchange Act of 1934 pilot basis, MEMX Rule 11.15.6 Rule MEMX is now a Participant pursuant to (‘‘Act’’),1 and Rule 19b–4 thereunder,2 11.15, among other things (i) provides the LULD Plan.12 notice is hereby given that on for uniform treatment of clearly The Exchange now proposes to amend September 17, 2020, MEMX LLC erroneous execution reviews in multi- MEMX Rule 11.15 to extend the pilot’s (‘‘MEMX’’ or ‘‘Exchange’’) filed with the stock events involving twenty or more effectiveness to the close of business on Securities and Exchange Commission securities; and (ii) reduces the ability of April 20, 2021. MEMX understands that (‘‘Commission’’) the proposed rule the Exchange to deviate from objective the other national securities exchanges change as described in Items I and II standards set forth in the rule. The rule and the Financial Industry Regulatory below, which Items have been prepared further provides that: (i) A series of Authority (‘‘FINRA’’) also intend to file by the Exchange. The Exchange filed the transactions in a particular security on similar proposals to extend their proposal as a ‘‘non-controversial’’ one or more trading days may be viewed respective clearly erroneous execution proposed rule change pursuant to as one event if all such transactions pilot programs, the substance of which Section 19(b)(3)(A)(iii) of the Act 3 and were effected based on the same are identical to MEMX Rule 11.15. The Exchange does not propose any Rule 19b–4(f)(6) thereunder.4 The fundamentally incorrect or grossly additional changes to MEMX Rule Commission is publishing this notice to misinterpreted issuance information 11.15. By proposing to extent the pilot, solicit comments on the proposed rule resulting in a severe valuation error for the Exchange will avoid any change from interested persons. all such transactions; and (ii) in the event of any disruption or malfunction discrepancy between its clearly I. Self-Regulatory Organization’s in the operation of the electronic erroneous pilot program and the pilot Statement of the Terms of Substance of communications and trading facilities of programs of other exchanges and the Proposed Rule Change the Exchange, another SRO, or 7 The Exchange is filing with the responsible single plan processor in See MEMX Rule 11.15. 8 See Securities Exchange Release Act No. 67091 Commission a proposed rule change to connection with the transmittal or (, 2012), 77 FR 33498 (, 2012) (the proposed rule change [sic] to extend the receipt of a trading halt, an Officer of ‘‘Limit Up-Limit Down Release’’). current pilot program related to MEMX the Exchange or senior level employee 9 See Securities Exchange Act Release No. 85623 Rule 11.15, ‘‘Clearly Erroneous designee, acting on his or her own (April 11, 2019), 84 FR 16086 (April 17, 2019) (File Executions,’’ to the close of business on motion, shall nullify any transaction No. 4–631). 10 See, e.g., Securities Exchange Act Release No. that occurs after a trading halt has been 85542 (, 2019), 84 FR 15009 (April 12, 2019) 1 15 U.S.C. 78s(b)(1). (SR–CboeBYX–2019–003). 2 17 CFR 240.19b–4. 5 See MEMX Rule 11.15. 11 See Securities Exchange Act Release No. 89420 3 15 U.S.C. 78s(b)(3)(A). 6 See Securities Exchange Release No. 88806 (May (, 2020), 85 FR 46762 (, 2020). 4 17 CFR 240.19b–4. 4, 2020), 85 FR 27451 (, 2020). 12 See id.

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FINRA, as the language of such rules are continue to be in effect on a pilot basis Commission believes that waiving the identical to MEMX Rule 11.15 and, as while the Exchange and the other 30-day operative delay is consistent noted above, other exchanges and national securities exchanges consider with the protection of investors and the FINRA also intend to file proposals to and develop a permanent proposal for public interest, as it will allow the extend their respective clearly clearly erroneous executions reviews. proposed rule change to become erroneous execution pilot programs. The operative prior to the launch of the B. Self-Regulatory Organization’s Exchange believes the benefits to market Exchange’s operation as a national Statement on Burden on Competition participants from the more objective securities exchange and permit the clearly erroneous executions rule The Exchange believes its proposed current clearly erroneous execution should continue on a limited pilot basis. rule change would not impose any pilot program to continue As the LULD Plan was approved by the burden on competition that is not uninterrupted, without any changes, Commission to operate on a permanent, necessary or appropriate in furtherance while the Exchange and the other rather than pilot, basis the Exchange of the purposes of the Act. To the national securities exchanges consider a intends to assess whether additional contrary, the Exchange understands that permanent proposal for clearly changes should also be made to the FINRA and other national securities erroneous execution reviews. For this operation of the clearly erroneous exchanges will also file similar reason, the Commission hereby waives execution rules. Extending the proposals to extend their respective the 30-day operative delay and effectiveness of MEMX Rule 11.15 on a clearly erroneous execution pilot designates the proposed rule change as limited basis should provide the programs. Thus, the proposed extension operative upon filing.19 Exchange and other national securities will help to ensure consistency across At any time within 60 days of the exchanges additional time to consider market centers without implicating any filing of the proposed rule change, the future amendments, if any, to the clearly competitive issues. Commission summarily may erroneous execution rules. C. Self-Regulatory Organization’s temporarily suspend such rule change if it appears to the Commission that such 2. Statutory Basis Statement on Comments on the Proposed Rule Change Received from action is necessary or appropriate in the The Exchange believes that its Members, Participants, or Others public interest, for the protection of proposal is consistent with Section 6(b) investors, or otherwise in furtherance of of the Act,13 in general, and furthers the The Exchange neither solicited nor the purposes of the Act. If the objectives of Section 6(b)(5) of the Act,14 received comments on the proposed Commission takes such action, the in particular, in that it is designed to rule change. Commission shall institute proceedings prevent fraudulent and manipulative III. Date of Effectiveness of the to determine whether the proposed rule practices, to promote just and equitable Proposed Rule Change and Timing for should be approved or disapproved. principles of trade, to foster cooperation Commission Action and coordination with persons engaged IV. Solicitation of Comments in regulating, clearing, settling, Because the foregoing proposed rule Interested persons are invited to processing information with respect to, change does not: (i) significantly affect submit written data, views, and and facilitating transactions in the protection of investors or the public arguments concerning the foregoing, securities, to remove impediments to interest; (ii) impose any significant including whether the proposed rule and perfect the mechanism of a free and burden on competition; and (iii) become change is consistent with the Act. open market and a national market operative for 30 days from the date on Comments may be submitted by any of system, and, in general to protect which it was filed, or such shorter time the following methods: investors and the public interest. as the Commission may designate, it has Electronic Comments Additionally, the Exchange believes the become effective pursuant to Section proposed rule change is consistent with 19(b)(3)(A) of the Act 15 and Rule 19b- • Use the Commission’s internet the Section 6(b)(5) requirement that the 4(f)(6) thereunder.16 comment form (http://www.sec.gov/ rules of an exchange not be designed to A proposed rule change filed under rules/sro.shtml); or 17 • permit unfair discrimination between Rule 19b-4(f)(6) normally does not Send an email to rule-comments@ customers, issuers, brokers, or dealers. become operative prior to 30 days after sec.gov. Please include File Number SR– In particular, the Exchange believes the date of the filing. However, Rule MEMX–2020–09 on the subject line. 19b–4(f)(6)(iii) 18 permits the that the proposed extension to the pilot Paper Comments Commission to designate a shorter time rule addressing clearly erroneous • extensions would help assure that the if such action is consistent with the Send paper comments in triplicate determination of whether a clearly protection of investors and the public to Secretary, Securities and Exchange erroneous trade has occurred will be interest. The Exchange has asked the Commission, 100 F Street, NE, based on clear and objective criteria, Commission to waive the 30-day Washington, DC 20549–1090. and that the resolution of the incident operative delay so that the proposed All submissions should refer to File will occur promptly through a rule change may become operative Number SR–MEMX–2020–09. This file transparent process. The proposed immediately upon filing. The number should be included on the extension would also help assure subject line if email is used. To help the consistent results in handling erroneous 15 15 U.S.C. 78s(b)(3)(A). Commission process and review your trades across the U.S. equities markets, 16 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– comments more efficiently, please use 4(f)(6)(iii) requires a self-regulatory organization to only one method. The Commission will thus furthering fair and orderly markets, give the Commission written notice of its intent to the protection of investors and the file the proposed rule change, along with a brief post all comments on the Commission’s public interest. Based on the foregoing, description and text of the proposed rule change, internet website (http://www.sec.gov/ the Exchange believes the clearly at least five business days prior to the date of filing of the proposed rule change, or such shorter time 19 erroneous executions rule should For purposes only of waiving the 30-day as designated by the Commission. The Exchange operative delay, the Commission has also has satisfied this requirement. considered the proposed rule’s impact on 13 15 U.S.C. 78f(b). 17 17 CFR 240.19b–4(f)(6). efficiency, competition, and capital formation. See 14 15 U.S.C. 78f(b)(5). 18 17 CFR 240.19b–4(f)(6)(iii). 15 U.S.C. 78c(f).

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rules/sro.shtml). Copies of the Supervision Act of 2010 (‘‘Clearing notice, as modified by Amendment Nos. submission, all subsequent Supervision Act’’),1 and Rule 19b– 1 and 2, is hereinafter referred to as the amendments, all written statements 4(n)(1)(i) 2 under the Securities ‘‘Advance Notice.’’ The Commission is with respect to the proposed rule Exchange Act of 1934 (‘‘Exchange publishing this notice to solicit change that are filed with the Act’’) 3 to add two new charges to comments on Amendment No. 2 from Commission, and all written NSCC’s margin methodology. On interested persons and, for the reasons communications relating to the , 2020, NSCC filed discussed below, is hereby providing proposed rule change between the Amendment No. 1 to the advance notice of no objection to the Advance Commission and any person, other than notice, to make clarifications and Notice. corrections to the advance notice.4 The those that may be withheld from the I. The Advance Notice public in accordance with the advance notice, as modified by provisions of 5 U.S.C. 552, will be Amendment No. 1, was published for First, the proposals in the Advance available for website viewing and public comment in the Federal Register Notice would revise NSCC’s Rules and 9 printing in the Commission’s Public on , 2020,5 and the Procedures (‘‘Rules’’) to introduce the Reference Room, 100 F Street NE, Commission has received no comments Margin Liquidity Adjustment Charge Washington, DC 20549, on official regarding the changes proposed in the (‘‘MLA Charge’’) as an additional margin business days between the hours of advance notice as modified by component. Second, the proposals in 10:00 a.m. and 3:00 p.m. Copies of the Amendment No. 1. On September 10, the Advance Notice would revise the filing also will be available for 2020, the Commission received one Rules to add a bid-ask spread risk inspection and copying at the principal comment letter on NSCC’s related charge (‘‘Bid-Ask Spread Charge’’) to office of the Exchange. All comments Proposed Rule Change.6 To the extent NSCC’s margin calculations. received will be posted without change. that the comment letter on the Proposed A. Background Rule Change is relevant to the Advance Persons submitting comments are NSCC provides central counterparty cautioned that we do not redact or edit Notice, it is discussed below.7 On , 2020, NSCC filed (‘‘CCP’’) services, including clearing, personal identifying information from settlement, risk management, and a comment submissions. You should Amendment No. 2 to the advance notice to provide additional data for the guarantee of completion for virtually all submit only information that you wish broker-to-broker trades involving equity to make available publicly. All Commission to consider in analyzing the advance notice.8 The advance securities, corporate and municipal debt submissions should refer to File securities, and certain other securities. Number SR–MEMX–2020–09 and should In its role as a CCP, a key tool that NSCC be submitted on or before , 1 12 U.S.C. 5465(e)(1). 2 uses to manage its credit exposure to its 2020. 17 CFR 240.19b–4(n)(1)(i). 3 15 U.S.C. 78a et seq. members by determining and collecting For the Commission, by the Division of 4 Amendment No. 1 made clarifications and an appropriate Required Fund Deposit Trading and Markets, pursuant to delegated corrections to the description of the advance notice (i.e., margin) for each member.10 The authority.20 and Exhibits 3 and 5 of the filing. aggregate of all members’ Required 5 J. Matthew DeLesDernier, Securities Exchange Act Release No. 89719 (September 1, 2020), 85 FR 55332 (September 4, Fund Deposits (together with certain Assistant Secretary. 2020) (File No. SR–NSCC–2020–804) (‘‘Notice of other deposits required under the Rules) [FR Doc. 2020–21768 Filed 10–1–20; 8:45 am] Filing’’). On , 2020, NSCC also filed a related constitutes NSCC’s Clearing Fund, proposed rule change (SR–NSCC–2020–016) with BILLING CODE 8011–01–P which NSCC would access should a the Commission pursuant to Section 19(b)(1) of the defaulted member’s own Required Fund Exchange Act and Rule 19b–4 thereunder. On August 13, 2020, NSCC filed Amendment No. 1 to Deposit be insufficient to satisfy losses SECURITIES AND EXCHANGE the proposed rule change to make similar to NSCC caused by the liquidation of COMMISSION clarifications and corrections to the proposed rule that member’s portfolio.11 change. See 15 U.S.C. 78s(b)(1) and 17 CFR Each member’s Required Fund [Release No. 34–90034; File No. SR–NSCC– 240.19b–4 respectively. The proposed rule change, Deposit consists of a number of 2020–804] as amended by Amendment No. 1, was published in the Federal Register on , 2020. applicable components, which are Securities Exchange Act Release No. 89558 (August calculated to address specific risks that Self-Regulatory Organizations; 14, 2020), 85 FR 51521 (August 20, 2020). On National Securities Clearing the member’s portfolio presents to August 27, 2020, NSCC filed Amendment No. 2 to 12 Corporation; Notice of Filing of the proposed rule change to provide similar NSCC. Generally, the largest Amendment No. 2 and Notice of No additional data for the Commission’s consideration. component of a member’s Required Objection to Advance Notice, as The proposed rule change, as amended by Fund Deposit is the volatility charge, Amendment Nos. 1 and 2, is hereinafter referred to which is intended to capture the risks Modified by Amendment Nos. 1 and 2, as the ‘‘Proposed Rule Change.’’ In the Proposed To Introduce the Margin Liquidity Rule Change, NSCC seeks approval of proposed related to the movement of market Adjustment Charge and Include a Bid- changes to its rules necessary to implement the prices associated with the securities in 13 Ask Risk Charge in the VaR Charge Advance Notice. The comment period for the a member’s portfolio. NSCC’s related Proposed Rule Change filing closed on methodology for calculating the September 10, 2020, and the Commission received September 28, 2020. no comments. On July 30, 2020, National Securities 6 See letter from Cass Sanford, Associated General data with respect to the proposals in the advance Clearing Corporation (‘‘NSCC’’) filed Counsel, OTC Markets Group (September 10, 2020) notice. NSCC filed Exhibit 3 as a confidential exhibit to the advance notice pursuant to 17 CFR with the Securities and Exchange (‘‘OTC Letter’’), available at https://www.sec.gov/ comments/sr-nscc-2020-016/srnscc2020016- 240.24b–2. Commission (‘‘Commission’’) advance 7757533-223234.pdf. 9 Capitalized terms not defined herein are defined ∼ notice SR–NSCC–2020–804 pursuant to 7 in the Rules, available at http://dtcc.com/ /media/ As the proposals contained in the Advance _ Section 806(e)(1) of Title VIII of the Notice were also filed as a proposed rule change, Files/Downloads/legal/rules/nscc rules.pdf. Dodd-Frank Wall Street Reform and all public comments received on the proposal are 10 See Rule 4 (Clearing Fund) and Procedure XV (Clearing Fund Formula and Other Matters) of the Consumer Protection Act, entitled considered regardless of whether the comments are submitted on the Proposed Rule Change or the Rules (‘‘Procedure XV’’), supra note 8. Payment, Clearing and Settlement Advance Notice. 11 See id. 8 In Amendment No. 2, NSCC updated Exhibit 3 12 See id. 20 17 CFR 200.30–3(a)(12). to the advance notice to include impact analysis 13 See id.

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volatility charge of the Required Fund a potentially compressed timeframe 20 measurement of the relative weight of Deposit depends on the type of security. (i.e., in a fire sale) could have an impact the position in that subgroup of the For most securities, (e.g., equity on the underlying market, resulting in portfolio. With respect to the fourth securities), NSCC calculates the price moves that increases NSCC’s risk component, NSCC states that this volatility charge as the greater of (1) the of incurring additional liquidation costs. measurement would include aggregating larger of two separate calculations that Therefore, NSCC designed the MLA the weight of each CUSIP in that utilize a parametric Value at Risk Charge to address this specific risk.21 position relative to the weight of that (‘‘VaR’’) model, (2) a gap risk measure The MLA Charge would be based on CUSIP in the subgroup, such that a calculation based on the largest non- comparing the market value of member portfolio with fewer positions in a index position in a portfolio that portfolio positions in specified asset subgroup would have a higher measure 22 exceeds a concentration threshold, groups to the available trading of concentration for that subgroup.25 which addresses concentration risk that volume of those asset groups. If the For each position in the municipal the largest non-index position can market value of a member’s positions in bond, corporate bond, Illiquid Securities a certain asset group is large in present within a member’s portfolio, and UIT asset groups, and for positions comparison to the available trading and (3) a portfolio margin floor in the treasury ETP and other ETP volume of that asset group,23 then it is calculation based on the market values subgroups of the equities asset group, more likely that NSCC would have to of the long and short positions in the NSCC would calculate the market manage reduced marketability and impact cost by multiplying three portfolio, which addresses risks that increased liquidation costs for those might not be adequately addressed with components: (1) An impact cost positions during a member default coefficient that is a multiple of the one- the other volatility charge scenario. Specifically, NSCC’s margin calculations.14 For certain other day market volatility of that asset group methodology assumes for each asset or subgroup, (2) the gross market value securities (e.g., corporate and municipal group that a certain share of the market bonds), NSCC’s Rules apply a haircut- of the position in that asset group or can be liquidated without price subgroup, and (3) the square root of the based volatility charge that is calculated impact.24 Aggregate positions in an asset by multiplying the absolute value of the gross market value of the position in group which exceed this share are that asset group or subgroup in the positions by a percentage.15 The generally considered as large and would volatility charge is designed to calculate portfolio divided by an assumed therefore incur application of the MLA percentage of the average daily trading the potential losses on a portfolio over Charge to anticipate and address those volume of that subgroup.26 a three-day period of risk assumed increased costs. necessary to liquidate the portfolio, For each position in a market For each asset group or subgroup, within a 99 percent confidence level.16 capitalization subgroup of the equities NSCC would compare the calculated asset group, NSCC would calculate the market impact cost to a portion of the NSCC states that it regularly assesses volatility charge that is allocated to market and liquidity risks as such risks market impact cost by multiplying four components: (1) An impact cost positions in that asset group or relate to its margin methodology to 27 coefficient that is a multiple of the one- subgroup. If the ratio of the calculated evaluate whether margin levels are day market volatility of that subgroup market impact cost to the applicable commensurate with the particular risk and is designed to measure impact one-day volatility charge is greater than attributes of each relevant product, a threshold, NSCC would apply an MLA 17 costs, (2) the gross market value of the portfolio, and market. NSCC states position in that subgroup, (3) the square Charge to that asset group or that the proposed MLA Charge and Bid- root of the gross market value of the subgroup.28 If the ratio of these two Ask Spread Charge are necessary for position in that subgroup in the NSCC to effectively account for risks portfolio divided by an assumed 25 NSCC would calculate the relative weight by associated with certain types and percentage of the average daily trading dividing the absolute market value of a single attributes of member portfolios.18 CUSIP in the member’s portfolio by the total volume of that subgroup, and (4) a absolute market value of that portfolio. See Notice B. Margin Liquidity Adjustment Charge of Filing, supra note 5 at 55334. 20 NSCC’s risk models assume the liquidation 26 See supra note 22. NSCC’s current margin methodology occurs over a period of three business days. See 27 For purposes of this calculation, NSCC would Notice of Filing, supra note 5 at 55333–34. does not account for the risk of a use a portion of the applicable volatility charge that 21 See Notice of Filing, supra note 5 at 55333. is based on a one-day assumed period of risk and potential increase in market impact 22 The specified asset groups would include (1) calculated by applying a simple square-root of time costs that NSCC could incur when equities (excluding equities defined as Illiquid scaling, referred to in this advance notice as ‘‘one- liquidating a defaulted member’s Securities pursuant to the Rules), (2) Illiquid day volatility charge.’’ See Notice of Filing, supra Securities, (3) unit investment trusts, or UITs, (4) note 5 at 55334. Any changes that NSCC deems portfolio that contains a concentration municipal bonds (including municipal bond appropriate to this assumed period of risk would be of large positions, as compared to the exchange-traded products, or ‘‘ETPs’’), and (5) subject to NSCC’s model risk management overall market, in a particular security corporate bonds (including corporate bond ETPs). governance procedures set forth in the Clearing or group of securities sharing a similar NSCC would then further segment the equities asset Agency Model Risk Management Framework 19 group into the following subgroups: (i) Micro- (‘‘Model Risk Management Framework’’). See risk profile. In a member default, capitalization equities, (ii) small capitalization Securities Exchange Act Release Nos. 81485 liquidating such large positions within equities, (iii) medium capitalization equities, (iv) (, 2017), 82 FR 41433 (August 31, 2017) large capitalization equities, (v) treasury ETPs, and (File No. SR–NSCC–2017–008); 84458 (October 19, (vi) all other ETPs. See id. 2018), 83 FR 53925 (October 25, 2018) (File No. SR– 14 See id.; see also Securities Exchange Act 23 NSCC states that it would determine average NSCC–2018–009); 88911 (May 20, 2020), 85 FR Release No. 82780 (February 26, 2018), 83 FR 9035 daily trading volume by reviewing data that is made 31828 (May 27, 2020) (File No. SR–NSCC–2020– (March 2, 2018) (File No. SR–NSCC–2017–808); publicly available by the Securities Industry and 008). Securities Exchange Act Release No. 82781 Financial Markets Association (‘‘SIFMA’’), at 28 (February 26, 2018), 83 FR 9042 (March 2, 2018) NSCC would set the initial threshold at 0.4, https://www.sifma.org/resources/archive/research/ (File No. SR–NSCC–2017–020). because approximately 40 percent of the one-day statistics. See id. volatility charge currently addresses market impact 15 See id. 24 NSCC would establish the particular share for costs. NSCC would review this threshold from time 16 See Notice of Filing, supra note 5 at 55332, 34. each asset group or subgroup based on empirical to time and any changes that NSCC deems 17 See Notice of Filing, supra note 5 at 55333. research which includes the simulation of asset appropriate would be subject to NSCC’s model risk 18 See id. liquidation over different time horizons. See Notice management governance procedures set forth in the 19 See id. of Filing, supra note 5 at 55333–34. Model Risk Management Framework. See id.

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amounts is equal to or less than this of Clearing Fund components that are Asset group Haircut threshold, NSCC would not apply an excluded from the calculation of the (bps) MLA Charge to that asset group or Excess Capital Premium charge.30 The subgroup. The threshold would be Excess Capital Premium is imposed on Large and medium capitalization equities ...... 5.0 based on an estimate of the market a member when the member’s Required impact cost that is incorporated into the Small capitalization equities ...... 12.3 Fund Deposit exceeds its excess net Micro-capitalization equities ...... 23.1 calculation of the applicable one-day capital. NSCC states that including the ETPs ...... 1.5 volatility charge, such that NSCC would MLA Charge in the calculation of the only apply an MLA Charge when the Excess Capital Premium could lead to NSCC proposes to review the haircut calculated market impact cost exceeds more frequent and unnecessary Excess rates annually.32 Based on analyses of this threshold. recent years’ simulation exercises, When applicable, an MLA Charge for Capital Premium charges, which is not the intended purpose of the Excess NSCC does not anticipate that these each asset group or subgroup would be haircut rates would change significantly calculated as a proportion of the Capital Premium charge and could place 31 year over year.33 NSCC may also adjust product of (1) the amount by which the an unnecessary burden on members. the haircut rates following its annual ratio of the calculated market impact C. Bid-Ask Spread Charge model validation review, to the extent cost to the applicable one-day volatility the results of that review indicate the charge exceeds the threshold, and (2) The bid-ask spread refers to the current haircut rates are not adequate to the one-day volatility charge allocated difference between the observed market address the risk presented by to that asset group or subgroup. price that a buyer is willing to pay for For each portfolio, NSCC would total transaction costs from a bid-ask a security and the observed market price spread.34 the MLA Charges for positions in each at which a seller is willing to sell that of the subgroups of the equities asset security. NSCC faces the risk of II. Solicitation of Comments group to determine an MLA Charge for potential bid-ask spread transaction Interested persons are invited to the positions in the equities asset group. costs when liquidating the securities in submit written data, views, and NSCC would then total the MLA Charge a defaulted member’s portfolio. arguments concerning the foregoing, for positions in the equities asset group including whether the advance notice is together with each of the MLA Charges However, NSCC’s current margin consistent with the Clearing for positions in the other asset groups to methodology does not account for this Supervision Act. Comments may be determine a total MLA Charge for a risk of potential bid-ask spread member. transaction costs to NSCC in connection submitted by any of the following In certain circumstances, NSCC may with liquidating a defaulted member’s methods: be able to partially mitigate the risks portfolio. Therefore, NSCC designed the Electronic Comments that the MLA Charge is designed to Bid-Ask Spread Charge to address this • Use the Commission’s internet address by extending the time period for deficiency in its current margin comment form (http://www.sec.gov/ liquidating a defaulted member’s methodologies. portfolio beyond the three day period. rules/sro.shtml); or The Bid-Ask Spread Charge would be • Send an email to rule-comments@ Accordingly, the Advance Notice also haircut-based and tailored to different sec.gov. Please include File Number SR– describes a method that NSCC would groups of assets that share similar bid- NSCC–2020–804 on the subject line. use to reduce a member’s total MLA ask spread characteristics. NSCC would Charge when the volatility charge Paper Comments component of the member’s margin assign each asset group a specified bid- ask spread haircut rate (measured in Send paper comments in triplicate to increases beyond a specified point. Secretary, Securities and Exchange Specifically, NSCC would reduce the basis points (‘‘bps’’)) that would be applied to the gross market value of the Commission, 100 F Street NE, member’s MLA Charge where the Washington, DC 20549. market impact cost of a particular portfolio’s positions in that particular portfolio, calculated as part of asset group. NSCC would calculate the All submissions should refer to File determining the MLA Charge, would be product of the gross market value of the Number SR–NSCC–2020–804. This file large relative to the one-day volatility portfolio’s positions in a particular asset number should be included on the charge for that portfolio (i.e., a portion group and the applicable basis point subject line if email is used. To help the of the three-day assumed margin period charge to obtain the bid-ask spread risk Commission process and review your of risk). When the ratio of calculated charge for these positions. NSCC would comments more efficiently, please use market impact cost to the one-day total the applicable bid-ask spread risk only one method. The Commission will post all comments on the Commission’s volatility charge is lower, NSCC would charges for each asset class in a internet website (http://www.sec.gov/ not adjust the MLA Charge. However, as member’s portfolio to calculate the rules/sro.shtml). Copies of the the ratio gets higher, NSCC would member’s final Bid-Ask Spread Charge. reduce the MLA Charge. NSCC designed submission, all subsequent NSCC determined the proposed initial this reduction mechanism to avoid amendments, all written statements haircut rates on an analysis of bid-ask assessing unnecessarily large MLA with respect to the advance notice that spread transaction costs using (1) the Charges.29 are filed with the Commission, and all On a daily basis, NSCC would results of NSCC’s annual member written communications relating to the calculate the final MLA Charge for each default simulation and (2) market data advance notice between the member (if applicable), to be included sourced from a third-party data vendor. Commission and any person, other than as a component of each member’s NSCC’s proposed initial haircut rates Required Fund Deposit. are listed in the table below: 32 See id. Finally, NSCC would amend the 33 See id. 34 All proposed changes to the haircuts would be 30 Rules to add the MLA Charge to the list See Section I.(B)(2) of Procedure XV, supra subject to NSCC’s model risk management note 8. governance procedures set forth in the Model Risk 29 See Notice of Filing, supra note 5 at 55334. 31 See Notice of Filing, supra note 5 at 55335. Management Framework. See supra note 26.

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those that may be withheld from the Act and Section 17A of the Exchange market impact costs that NSCC could public in accordance with the Act (the ‘‘Clearing Agency Rules’’).39 incur when liquidating a defaulted provisions of 5 U.S.C. 552, will be The Clearing Agency Rules require, member’s portfolio where the portfolio available for website viewing and among other things, each covered contains a concentration of large printing in the Commission’s Public clearing agency to establish, implement, positions in a particular security or Reference Room, 100 F Street NE, maintain, and enforce written policies group of securities sharing a similar risk Washington, DC 20549, on official and procedures that are reasonably profile. Additionally, as described above business days between the hours of designed to meet certain minimum in Section I.C, NSCC’s margin 10:00 a.m. and 3:00 p.m. Copies of such requirements for its operations and risk methodology does not account for the filings will also be available for management practices on an ongoing risk of potential bid-ask spread inspection and copying at the principal basis.40 As such, it is appropriate for the transaction costs when liquidating the office of NSCC and NSCC’s website at Commission to review advance notices securities in a defaulted member’s https://www.dtcc.com/legal. against the Clearing Agency Rules and portfolio. NSCC proposes to address All comments received will be posted the objectives and principles of these these respective risks by adding the without change. Persons submitting risk management standards as described MLA Charge and Bid-Ask Spread comments are cautioned that we do not in Section 805(b) of the Clearing Charge to its margin methodology.44 redact or edit personal identifying Supervision Act. As discussed below, Specifically, the MLA Charge should information from comment submissions. the Commission believes the proposal in better enable NSCC to manage the risk You should submit only information the Advance Notice is consistent with of incurring costs associated with the that you wish to make available the objectives and principles described decreased marketability of a defaulted publicly. All submissions should refer in Section 805(b) of the Clearing member’s portfolio where the portfolio to File Number SR–NSCC–2020–804 Supervision Act,41 and in the Clearing contains a large position in securities and should be submitted on or before Agency Rules, in particular Rules sharing similar risk profiles, resulting in October 19, 2020. 17Ad–22(e)(4) and (e)(6).42 potentially higher liquidation costs. To avoid excessive MLA Charges, NSCC III. Discussion and Commission A. Consistency With Section 805(b) of has identified circumstances that would Findings the Clearing Supervision Act warrant reducing a member’s MLA Although the Clearing Supervision The Commission believes that the Charge when NSCC could otherwise Act does not specify a standard of Advance Notice is consistent with the partially mitigate the relevant risks by review for an advance notice, the stated stated objectives and principles of extending the time period for purpose of the Clearing Supervision Act Section 805(b) of the Clearing liquidating a defaulted member’s is instructive: To mitigate systemic risk Supervision Act. 43 portfolio beyond the three day period. in the financial system and promote The Commission believes that The Commission views this targeted financial stability by, among other adopting NSCC’s proposed MLA Charge reduction in the MLA Charge as a things, promoting uniform risk and Bid-Ask Spread Charge would be feature of the proposal that management standards for SIFMUs and consistent with the promotion of robust demonstrates a robust approach towards strengthening the liquidity of SIFMUs.35 risk management at NSCC. As described managing the relevant risks through Section 805(a)(2) of the Clearing above in Section I.A and B, NSCC’s appropriate (i.e., not simply ‘‘larger’’) Supervision Act authorizes the current margin methodology does not margin requirements. Additionally, Commission to prescribe regulations account for the potential increase in since NSCC’s current margin containing risk management standards methodology does not account for bid- 39 for the payment, clearing, and 17 CFR 240.17Ad–22. See Securities Exchange ask spread transaction costs when Act Release No. 68080 (October 22, 2012), 77 FR liquidating a defaulted member’s settlement activities of designated 66220 (November 2, 2012) (S7–08–11). See also clearing entities engaged in designated Securities Exchange Act Release No. 78961 portfolio, the Bid-Ask Spread Charge activities for which the Commission is (September 28, 2016), 81 FR 70786 (, should enable NSCC to manage such the supervisory agency.36 Section 805(b) 2016) (S7–03–14) (‘‘Covered Clearing Agency risks. Accordingly, the Commission Standards’’). NSCC is a ‘‘covered clearing agency’’ of the Clearing Supervision Act believes that adopting the proposed as defined in Rule 17Ad–22(a)(5). MLA Charge and Bid-Ask Spread provides the following objectives and 40 17 CFR 240.17Ad–22. principles for the Commission’s risk 41 12 U.S.C. 5464(b). Charge would allow for measurement management standards prescribed under 42 17 CFR 240.17Ad–22(e)(4) and (e)(6). and targeted mitigation of risks and Section 805(a):37 43 One of the issues raised by the OTC Letter is costs not captured elsewhere in NSCC’s • to promote robust risk management; directed at the Proposed Rule Change, will be current margin methodology, and would • addressed in that context. Specifically, OTC therefore provide for more to promote safety and soundness; Markets Group argues that the proposal imposes an • to reduce systemic risks; and undue burden on competition, stating that the comprehensive management of risks in • to support the stability of the proposal would impose additional margin a member default scenario, consistent broader financial system. requirements for firms processing transactions in with the promotion of robust risk Section 805(c) provides, in addition, smaller and less liquid securities and management. disproportionately impact member firms with lower The commenter argues that NSCC’s that the Commission’s risk management operating margins or higher costs of capital. That standards may address such areas as issue is relevant to the Commission’s evaluation of Advance Notice fails to provide risk management and default policies the related Proposed Rule Change, which is sufficient information to evaluate the and procedures, among others areas.38 conducted under the Exchange Act, but not to the necessity and impact of the proposal. Commission’s evaluation of the Advance Notice, Specifically, the commenter argues that The Commission has adopted risk which, as discussed below in Section III.B, is management standards under Section conducted under the Clearing Supervision Act and the proposal provides no explanation as 805(a)(2) of the Clearing Supervision generally considers whether the proposal will to why the current Clearing Fund mitigate systemic risk and promote financial stability. Accordingly, concerns regarding burden 44 The Commission notes that the other clearing 35 See 12 U.S.C. 5461(b). on competition are not discussed herein but will be agencies it regulates have charges to account for 36 12 U.S.C. 5464(a)(2). addressed in the Commission’s review of the related these types of risks in their margin methodologies, 37 12 U.S.C. 5464(b). Proposed Rule Change, as applicable, under the and that addressing these types of risks has received 38 12 U.S.C. 5464(c). Exchange Act. a great deal of industry focus in recent years.

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formula is inadequate or how the the promotion of robust risk impose the MLA Charge without an proposed methodology would limit management at NSCC. appropriate risk management basis. NSCC’s exposure in the event of a Further, the Commission believes that Accordingly, the Commission believes member default. The Commission adopting NSCC’s proposed MLA Charge that NSCC’s adoption of the proposed disagrees. As described in the Notice and Bid-Ask Spread Charge would be MLA Charge and Bid-Ask Spread and noted above, NSCC’s current margin consistent with promoting safety and Charge would be consistent with the methodology does not account for the soundness at NSCC. NSCC designed the reduction of systemic risk and risk of a potential increase in market MLA Charge and Bid-Ask Spread supporting the stability of the broader impact costs that NSCC could incur Charge to ensure that NSCC collects financial system. when liquidating a defaulted member’s margin amounts sufficient to manage For the reasons stated above, the portfolio that contains a concentration NSCC’s risk of incurring costs Commission believes the changes of large positions, as compared to the associated with liquidating defaulted proposed in the Advance Notice are overall market and account for this risk member portfolios. The proposed MLA consistent with Section 805(b) of the of potential bid-ask spread transaction Charge and Bid-Ask Spread Charge Clearing Supervision Act.47 would generally provide NSCC with costs in connection with liquidating a B. Consistency With Rule 17Ad– additional resources to manage potential defaulted member’s portfolio. As a 22(e)(4)(i) result, NSCC’s Advance Notice is losses arising out of a member default. designed to address these specific risks, Such an increase in available financial Rule 17Ad–22(e)(4)(i) requires that that are currently unaddressed, and thus resources would decrease the likelihood NSCC establish, implement, maintain limit NSCC’s exposure. that losses arising out of a member and enforce written policies and Furthermore, when considering the default would exceed NSCC’s resources procedures reasonably designed to issues raised in the Advance Notice, the and threaten the safety and soundness effectively identify, measure, monitor, Commission thoroughly considered (1) of NSCC’s ongoing operations. and manage its credit exposures to NSCC’s Advance Notice, including the Accordingly, the Commission believes participants and those arising from its supporting exhibits that provided, that adding the proposed MLA Charge payment, clearing, and settlement among other things, confidential impact and Bid-Ask Spread Charge to NSCC’s processes, including by maintaining analyses regarding the proposals in margin methodology would be sufficient financial resources to cover its NSCC’s Advance Notice; 45 (2) the OTC consistent with promoting safety and credit exposure to each participant fully Letter; and (3) the Commission’s own soundness at NSCC. with a high degree of confidence.48 understanding of NSCC’s margin Finally, the Commission believes that As described above in Section I.A and methodology, with which the adopting NSCC’s proposed MLA Charge B, NSCC’s current margin methodology Commission has experience from its and Bid-Ask Spread Charge would be does not account for the risk of a general supervision of NSCC. Based on consistent with reducing systemic risks potential increase in market impact its review of these materials, the and supporting the stability of the costs that NSCC could incur when Commission believes that, as set forth in broader financial system. As discussed liquidating a defaulted member’s the Notice of Filing, NSCC has done above, in a member default scenario, portfolio where the portfolio contains a exactly what the commenter seeks, in NSCC would access its Clearing Fund large position in securities sharing that the proposal explains why the should the defaulted member’s own similar risk profiles. Additionally, as current methodology is inadequate (i.e., Required Fund Deposit be insufficient described above, NSCC’s current margin it does not address these particular to satisfy losses to NSCC caused by the methodology does not account for the risks), and how the proposed liquidation of that member’s portfolio. risk of potential bid-ask spread methodology would address this issue NSCC proposes to add the MLA Charge transaction costs when liquidating the (i.e., by including add-on charges and Bid-Ask Spread Charge to its securities in a defaulted member’s calibrated to address these particular margin methodology to better manage portfolio. NSCC proposes to address risks).46 Thus, notwithstanding the the potential costs of liquidating a such risks by adding the MLA Charge comments raised in the OTC Letter, the defaulted member’s portfolio. NSCC and Bid-Ask Spread Charge to its Commission believes that adopting the proposes to collect additional margin to margin methodology. Adding these proposed MLA Charge and Bid-Ask cover such costs. This, in turn, could margin charges to NSCC’s margin Spread Charge would be consistent with reduce the possibility that NSCC would methodology should better enable NSCC need to mutualize among the non- to collect margin amounts 45 Specifically, the confidential Exhibit 3 defaulting members a loss arising out of commensurate with the risk attributes of submitted by NSCC includes, among other things, the close-out process. Reducing the a broader range of its members’ (1) impact studies for various time periods detailing potential for loss mutualization could, portfolios than NSCC’s current margin the average and maximum MLA and Bid-Ask Charges for each member, by both percentage and in turn, reduce the potential knock-on methodology. Specifically, the MLA amount, (2) a detailed methodology describing the effects to non-defaulting members, their Charge should better enable NSCC to calculation of the MLA and Bid-Ask Charges, and customers, and the broader market manage the risk of increased costs to (3) information regarding how NSCC determined arising out of a member default. Further, NSCC associated with the decreased the appropriate methodology. the Commission notes that, to the extent marketability of a defaulted member’s 46 Moreover, to the extent that the commenter argues that additional detail or information is that the MLA Charge results in any portfolio where the portfolio contains a necessary to enable the public to evaluate the reduction in members’ large positions in large position in securities sharing proposal, the Commission disagrees. With respect securities with similar risk profiles, it similar risk profiles. Additionally, since to the MLA Charge, the Notice of Filing explains could reduce the potential risk of NSCC’s current margin methodology that concentrated positions would lead to application of the MLA Charge and provides adverse market impacts that can arise does not account for bid-ask spread sufficient information as to the components that from liquidating those large positions. transaction costs associated with would be used to make the determination of However, the Commission also notes liquidating a defaulted member’s concentration to allow a Member to consider that the proposal to reduce the MLA portfolio, the Bid-Ask Spread Charge whether the MLA Charge would apply. With respect to the Bid-Ask Spread Charge, the Notice of Charge when NSCC could otherwise Filing identifies the particular haircuts that would partially mitigate the relevant risks 47 12 U.S.C. 5464(b). apply to all securities. would help ensure that NSCC would not 48 17 CFR 240.17Ad–22(e)(4)(i).

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should enable NSCC to manage such equity securities), NSCC calculates the only apply to concentrated positions risks and costs. volatility component using, among other that could be difficult to liquidate in a The commenter suggests that the things, a parametric Value at Risk limited time in the event of a default. proposals in NSCC’s Advance Notice are (‘‘VaR’’) model, and the volatility Because NSCC’s Advance Notice and duplicative of a separate NSCC proposal component typically constitutes the the Illiquid Securities Proposal address regarding Illiquid Securities that is largest portion of a member’s required wholly separate and distinct aspects of currently pending before the margin. However, securities with NSCC’s margin methodology, the Commission.49 The commenter argues illiquid characteristics generally incur a Commission disagrees with the OTC that since both proposals include wider degree of price variability and are Markets Group that the two proposals provisions that would apply to Illiquid less amenable to statistical analysis, should be consolidated or otherwise Securities,50 thereby potentially and, as such, may merit a more disposed of together. affecting their margin levels, both conservative margining approach The Commission believes that adding proposals appear to address the same through a haircut-based method. The the MLA Charge and Bid-Ask Spread concerns. Therefore, the commenter proposed haircut-based method is more Charge to NSCC’s margin methodology suggests that instead of approving conservative because it does not allow should enable NSCC to more effectively NSCC’s Advance Notice, the for inter-asset risk offsetting in the way identify, measure, monitor, and manage Commission should consolidate NSCC’s that the VaR model does. its credit exposures in connection with Advance Notice together with the Accordingly, for certain securities that liquidating a defaulted member’s Illiquid Securities Proposal and extend are less amenable to the statistical portfolio that may give rise to (1) the public comment period before the analysis provided in the VaR model, decreased marketability due to large Commission makes a substantive including Illiquid Securities, NSCC positions of securities sharing similar determination. currently calculates a haircut-based risk profiles, and (2) bid-ask spread The Commission disagrees with the volatility component by multiplying the transaction costs. Accordingly, the comments raised in the OTC Letter. absolute value of a member’s positions Commission believes that adding the NSCC’s Advance Notice and the Illiquid in such securities by a certain MLA Charge and Bid-Ask Spread Securities Proposal deal with separate percentage. NSCC’s pending Illiquid Charge to NSCC’s margin methodology and distinguishable aspects of NSCC’s Securities Proposal would, among other would be consistent with Rule 17Ad– margin methodology, even if there is a things, establish a separate haircut- 22(e)(4)(i) because these new margin group of Illiquid Securities to which based method for determining the charges should better enable NSCC to both proposals would apply. The volatility component of the margin for maintain sufficient financial resources Illiquid Securities Proposal is designed Illiquid Securities. Thus, the Illiquid to cover NSCC’s credit exposure to its to amend the method by which NSCC Securities Proposal would alter the way members fully with a high degree of determines the appropriate volatility in which NSCC determines the confidence.51 component of margin for a particular appropriate margin for Illiquid thinly traded security, i.e., calculate Securities. C. Consistency With Rules 17Ad– appropriate margin to cover potential In contrast, NSCC’s Advance Notice is 22(e)(6)(i) and (v) losses on a portfolio using historical, not designed to identify which Rule 17Ad–22(e)(6)(i) requires that mid-point securities prices. The securities exhibit illiquid NSCC establish, implement, maintain Advance Notice is designed to address characteristics, and it would not alter and enforce written policies and two specific risks that are not captured the methodology by which NSCC procedures reasonably designed to cover directly by historical mid-point security determines the volatility component of its credit exposures to its participants by price movements and that are directed the margin for any particular securities, establishing a risk-based margin system at additional costs that may arise during including Illiquid Securities. Instead, that, at a minimum, considers, and the liquidation of a Member’s portfolio with respect to the MLA Charge, NSCC’s produces margin levels commensurate in the event of a default: (1) The Advance Notice relates to a new margin with, the risks and particular attributes potential added costs of liquidating charge add-on that, if triggered, applies of each relevant product, portfolio, and large concentrated positions in a limited to all securities cleared at NSCC (i.e., market.52 Rule 17Ad–22(e)(6)(v) period of time and (2) bid-ask spread not solely to Illiquid Securities), and the requires that NSCC establish, transactions costs. proposed add-on is distinct from the implement, maintain and enforce Specifically, the Illiquid Securities underlying margin otherwise collected written policies and procedures Proposal seeks to, among other things, for all securities (including Illiquid reasonably designed to cover its credit more accurately identify securities that Securities). Rather than addressing the exposures to its participants by exhibit illiquid characteristics for volatility component of margin and the establishing a risk-based margin system margin purposes and to establish a potential losses on a portfolio, as does that, at a minimum, uses an appropriate separate haircut-based method for the Illiquid Securities Proposal, the method for measuring credit exposure determining the margin for Illiquid proposal described in the Advance that accounts for relevant product risk Securities. NSCC’s methodology for Notice is designed to address the factors and portfolio effects across calculating the volatility component of discrete risks of a default liquidation products.53 a member’s margin depends on the type scenario. These discrete risks include As described above in Section I.A and of securities in the member’s portfolio. those associated with (1) concentrated B, NSCC’s current margin methodology Generally, for most securities (e.g., large positions in any type of security or does not account for the potential group of securities sharing a similar risk increase in market impact costs when 49 Securities Exchange Act Release No. 88615 profile, and (2) bid-ask spread liquidating a defaulted member’s (, 2020), 85 FR 21037 (, 2020) (SR– transaction costs that are currently portfolio where the portfolio contains a NSCC–2020–802) (‘‘Illiquid Securities Proposal’’). unaccounted for in NSCC’s margin large position in securities sharing 50 Under NSCC’s Rules, Illiquid Securities may methodology. Moreover, the MLA include any security that meets the criteria set forth in the term’s definition and would not necessarily Charge would not automatically be 51 Id. be limited to securities with small or micro market applied based on the security or type of 52 17 CFR 240.17Ad–22(e)(6)(i). capitalizations. security that is held; instead, it would 53 17 CFR 240.17Ad–22(e)(6)(v).

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similar risk profiles. NSCC proposes to exposure that accounts for such risk and the Commission has received no address this risk by adding the MLA factors and portfolio effects.54 comments regarding the changes Charge to its margin methodologies. To proposed in the advance notice as IV. Conclusion avoid excessive MLA Charges and modified by Amendment No. 1.6 On ensure margin requirements are It is therefore noticed, pursuant to August 27, 2020, FICC filed Amendment commensurate with the relevant risks, Section 806(e)(1)(I) of the Clearing No. 2 to the advance notice to provide NSCC also contemplates reducing a Supervision Act, that the Commission additional data for the Commission to member’s MLA Charge when NSCC does not object to Advance Notice (SR– consider in analyzing the advance could otherwise partially mitigate the NSCC–2020–804) and that NSCC is notice.7 The advance notice, as relevant risks by extending the time authorized to implement the proposed modified by Amendment Nos. 1 and 2, period for liquidating a defaulted change as of the date of this notice or is hereinafter referred to as the member’s portfolio beyond the three day the date of an order by the Commission ‘‘Advance Notice.’’ The Commission is period. approving Proposed Rule Change SR– publishing this notice to solicit Additionally, as described above in NSCC–2020–016, whichever is later. comments on Amendment No. 2 from Section I.A and B, NSCC’s current By the Commission. interested persons and, for the reasons margin methodology does not account J. Matthew DeLesDernier, discussed below, is hereby providing for the risk of incurring bid-ask spread Assistant Secretary. notice of no objection to the Advance transaction costs when liquidating the Notice. [FR Doc. 2020–21785 Filed 10–1–20; 8:45 am] securities in a defaulted member’s portfolio. NSCC proposes to address this BILLING CODE 8011–01–P I. The Advance Notice risk by adding the Bid-Ask Spread First, the proposals in the Advance Notice would revise the FICC Charge to its margin methodology. SECURITIES AND EXCHANGE Government Securities Division Adding the MLA Charge and Bid-Ask COMMISSION Spread Charge to NSCC’s margin (‘‘GSD’’) Rulebook (‘‘GSD Rules’’) and methodology should better enable NSCC [Release No. 34–90033; File No. SR–FICC– FICC Mortgage-Backed Securities to collect margin amounts 2020–802] Division (‘‘MBSD’’) Clearing Rules commensurate with the risk attributes of (‘‘MBSD Rules,’’ and together with the Self-Regulatory Organizations; Fixed its members’ portfolios than NSCC’s GSD Rules, the ‘‘Rules’’) 8 to introduce Income Clearing Corporation; Notice of current margin methodology. the Margin Liquidity Adjustment Charge Filing of Amendment No. 2 and Notice Specifically, the MLA Charge should (‘‘MLA Charge’’) as an additional margin of No Objection to Advance Notice, as better enable NSCC to manage the risk component. Second, the proposals in Modified by Amendment Nos. 1 and 2, of increased costs to NSCC associated the Advance Notice would revise the to Introduce the Margin Liquidity with the decreased marketability of a Rules, GSD Methodology Document— defaulted member’s portfolio where the Adjustment Charge and Include a Bid- GSD Initial Market Risk Margin Model portfolio contains a large position in Ask Charge in the VaR Charges (‘‘GSD QRM Methodology Document’’), securities sharing similar risk profiles. September 28, 2020. and MBSD Methodology and Model Moreover, the proposal to reduce the On July 30, 2020, Fixed Income MLA Charge when NSCC could Clearing Corporation (‘‘FICC’’) filed proposed rule change (SR–FICC–2020–009) with otherwise partially mitigate the relevant the Commission pursuant to Section 19(b)(1) of the with the Securities and Exchange Exchange Act and Rule 19b–4 thereunder. On risks demonstrates how the proposal Commission (‘‘Commission’’) advance August 13, 2020, FICC filed Amendment No. 1 to provides an appropriate method for notice SR–FICC–2020–802 pursuant to the proposed rule change to make similar measuring credit exposure, in that it Section 806(e)(1) of Title VIII of the clarifications and corrections to the proposed rule seeks to take into account the particular change. See 15 U.S.C. 78s(b)(1) and 17 CFR Dodd-Frank Wall Street Reform and 240.19b–4 respectively. The proposed rule change, circumstances related to a particular Consumer Protection Act, entitled as amended by Amendment No. 1, was published portfolio when determining the MLA Payment, Clearing and Settlement in the Federal Register on August 20, 2020. Charge. Additionally, since NSCC’s Supervision Act of 2010 (‘‘Clearing Securities Exchange Act Release No. 89560 (, 2020), 85 FR 51503 (August 20, 2020). On current margin methodology does not Supervision Act’’),1 and Rule 19b– account for bid-ask spread transaction August 27, 2020, FICC filed Amendment No. 2 to 4(n)(1)(i) 2 under the Securities the proposed rule change to provide similar costs associated with liquidating a Exchange Act of 1934 (‘‘Exchange additional data for the Commission’s consideration. defaulted member’s portfolio, the Bid- Act’’) 3 to add two new charges to FICC’s The proposed rule change, as amended by Ask Spread Charge should enable NSCC Amendment Nos. 1 and 2, is hereinafter referred to margin methodologies. On August 13, as the ‘‘Proposed Rule Change.’’ In the Proposed to manage such risks. 2020, FICC filed Amendment No. 1 to Accordingly, the Commission believes Rule Change, FICC seeks approval of proposed the advance notice, to make changes to its rules necessary to implement the that adding the MLA Charge and Bid- clarifications and corrections to the Advance Notice. The comment period for the Ask Spread Charge to NSCC’s margin related Proposed Rule Change filing closed on advance notice.4 The advance notice, as methodology would be consistent with September 10, 2020, and the Commission received modified by Amendment No. 1, was Rules 17Ad–22(e)(6)(i) and (v) because no comments. published for public comment in the 6 As the proposals contained in the Advance these new margin charges should better Federal Register on September 4, 2020,5 Notice were also filed as a proposed rule change, enable NSCC to establish a risk-based all public comments received on the proposal are margin system that (1) considers and considered regardless of whether the comments are 54 17 CFR 240.17Ad–22(e)(6)(i) and (v). produces relevant margin levels submitted on the Proposed Rule Change or the 1 12 U.S.C. 5465(e)(1). Advance Notice. commensurate with the risks associated 2 17 CFR 240.19b–4(n)(1)(i). 7 In Amendment No. 2, FICC updated Exhibit 3 with liquidating member portfolios in a 3 15 U.S.C. 78a et seq. to the advance notice to include impact analysis default scenario, including decreased 4 Amendment No. 1 made clarifications and data with respect to the proposals in the advance marketability of a portfolio’s securities corrections to the description of the advance notice notice. FICC filed Exhibit 3 as a confidential exhibit due to large positions in securities and Exhibits 3 and 5 of the filing. to the advance notice pursuant to 17 CFR 240.24b– 5 Securities Exchange Act Release No. 89718 2. sharing similar risk profiles and bid-ask (September 1, 2020), 85 FR 55341 (September 4, 8 Capitalized terms not defined herein are defined transaction costs, and (2) uses an 2020) (File No. SR–FICC–2020–802) (‘‘Notice of in the Rules, available at https://www.dtcc.com/ appropriate method for measuring credit Filing’’). On July 30, 2020, FICC also filed a related legal/rules-and-procedures.aspx.

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Operations Document—MBSD a member’s portfolio.14 The VaR Charge volume of those asset groups in the Quantitative Risk Model (‘‘MBSD QRM is designed to calculate the potential market. If the market value of a Methodology Document,’’ and together losses on a portfolio over a three-day member’s positions in a certain asset with the GSD QRM Methodology period of risk assumed necessary to group is large in comparison to the Document, the ‘‘QRM Methodology liquidate the portfolio, within a 99 available trading volume of that asset Documents’’) 9 to add a bid-ask spread percent confidence level.15 group,22 then it is more likely that FICC risk charge (‘‘Bid-Ask Spread Charge’’) FICC states that it regularly assesses would have to manage reduced to the margin calculations of GSD and market and liquidity risks as such risks marketability and increased liquidation MBSD. relate to its margin methodologies to costs for those positions during a evaluate whether margin levels are member default scenario. Specifically, A. Background commensurate with the particular risk FICC’s margin methodology assumes for FICC serves as a central counterparty attributes of each relevant product, each asset group that a certain share of (‘‘CCP’’) and provider of significant portfolio, and market.16 FICC states that the market can be liquidated without clearance and settlement services for the proposed MLA Charge and Bid-Ask price impact.23 Aggregate positions in cash-settled U.S. Treasury and agency Spread Charge are necessary for FICC’s an asset group which exceed this share securities and the non-private label margin methodologies to effectively are generally considered as large and mortgage-backed securities markets.10 account for risks associated with certain would therefore incur application of the FICC is comprised of two divisions, types and attributes of member MLA Charge to anticipate and address GSD and MBSD. GSD provides real-time portfolios.17 those increased costs. trade matching, clearing, risk To determine the market impact cost management, and netting for trades in B. Margin Liquidity Adjustment Charge for each portfolio position in certain U.S. government debt issues, including FICC’s current margin methodologies asset groups (i.e., Treasuries maturing in repurchase agreements. MBSD provides do not account for the risk of a potential less than one year and TIPS for GSD, real-time automated trade matching, increase in market impact costs that and in the mortgage-backed securities trade confirmation, risk management, FICC could incur when liquidating a asset group for MBSD), FICC would use netting, and electronic pool notification defaulted member’s portfolio that the directional market impact cost, to the mortgage-backed securities contains a concentration of large which is a function of the position’s net market. GSD and MBSD maintain positions, as compared to the overall directional market value.24 To separate Rulebooks, margin market, in either (i) a particular security determine the market impact cost for all methodologies, and members. or group of securities sharing a similar other positions in a portfolio, FICC In its role as a CCP, a key tool that risk profile, or (ii) in a particular would add together two components: (1) FICC uses to manage its credit exposure transaction type (e.g., mortgage pool The directional market impact cost, as to its respective GSD and MBSD transactions).18 In a member default, described above, and (2) the basis cost, members is by determining and liquidating such large positions within which is based on the position’s gross 25 collecting an appropriate Required Fund a potentially compressed timeframe 19 market value. FICC states that the Deposit (i.e., margin) for each member.11 (i.e., in a fire sale) could have an impact calculation of market impact cost for The aggregate of all members’ Required on the underlying market, resulting in positions in Treasuries maturing in less Fund Deposits constitutes the respective price moves that increases FICC’s risk of than one year, TIPS for GSD, and in the GSD and MBSD Clearing Funds. FICC incurring additional liquidation costs. mortgage-backed securities asset group would access the GSD or MBSD Therefore, FICC designed the MLA for MBSD would not include basis cost Clearing Fund should a defaulted Charge to address this specific risk.20 The MLA Charge would be based on maturing in (i) less than two years, (ii) equal to or member’s own Required Fund Deposit more than two years and less than six years, (iii) be insufficient to satisfy losses to FICC comparing the market value of member equal to or more than six years and less than eleven caused by the liquidation of that portfolio positions in specified asset years, and (iv) equal to or more than eleven years; member’s portfolio.12 groups 21 to the available trading (c) U.S. agency bonds; and (d) mortgage pools Each member’s Required Fund transactions. For MBSD, to-be-announced (‘‘TBA’’) 14 See GSD Rule 1 (Definitions), MBSD Rule 1 Deposit consists of a number of transactions, Specified Pool Trades and Stipulated (Definitions), GSD Rule 4 (Clearing Fund and Loss Trades would be included in one mortgage-backed applicable components, which are Allocation), and MBSD Rule 4 (Clearing Fund and securities asset group. Notice of Filing, supra note calculated to address specific risks that Loss Allocation), supra note 8. 5 at 55343. the member’s portfolio presents to 15 See Notice of Filing, supra note 5 at 55342. 22 FICC determines average daily trading volume 13 Unregistered Investment Pool Clearing Members are FICC. Generally, the largest by reviewing publicly available data from the subject to a VaR Charge with a minimum target component of a member’s Required Securities Industry and Financial Markets confidence level assumption of 99.5 percent. See Fund Deposit is the value-at-risk Association (‘‘SIFMA’’), at https://www.sifma.org/ MBSD Rule 4, Section 2(c), supra note 8. resources/archive/research/statistics. (‘‘VaR’’) Charge, which is calculated 16 See Notice of Filing, supra note 5 at 55342. 23 FICC would establish the particular share for using a risk-based margin methodology 17 See id. each asset group or subgroup based on empirical that is intended to capture the risks 18 See id. research which includes the simulation of asset related to the movement of market 19 FICC’s risk models assume the liquidation liquidation over different time horizons. See Notice prices associated with the securities in occurs over a period of three business days. See of Filing, supra note 5 at 55343. Notice of Filing, supra note 5 at 55342–43. 24 The net directional market value of an asset 20 See id. group within a portfolio is calculated as the 9 FICC filed the proposed changes to the QRM 21 For GSD, the asset groups would include the absolute difference between the market value of the Methodology Documents as confidential exhibits to following, each of which share similar risk profiles: long positions in that asset group, and the market the Advance Notice pursuant to 17 CFR 240.24b– (a) U.S. Treasury securities, which would be further value of the short positions in that asset group. For 2. categorized by maturity—those maturing in (i) less example, if the market value of the long positions 10 See Securities Exchange Act Release No. 69838 than one year, (ii) equal to or more than one year is $100,000, and the market value of the short (, 2013), 78 FR 39027 (, 2013). and less than two years, (iii) equal to or more than positions is $150,000, the net directional market 11 See GSD Rule 4 (Clearing Fund and Loss two years and less than five years, (iv) equal to or value of the asset group is $50,000. See id. Allocation) and MBSD Rule 4 (Clearing Fund and more than five years and less than ten years, and 25 To determine the gross market value of the Loss Allocation), supra note 8. (v) equal to or more than ten years; (b) Treasury- positions in each asset group, FICC would sum the 12 See id. Inflation Protected Securities (‘‘TIPS’’), which absolute value of each CUSIP in the asset group. See 13 See id. would be further categorized by maturity—those id.

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because basis risk is negligible for these liquidating a defaulted member’s The MLA Excess Amount is designed types of positions.26 For all asset groups, portfolio beyond the three day period. to capture the additional market impact when determining the market impact Accordingly, the Advance Notice also cost that could be incurred when a costs, the net directional market value describes a method that FICC would use Sponsored Member defaults, and each and the gross market value of the to reduce a member’s total MLA Charge of the Sponsoring Members liquidates positions would be divided by the when the volatility charge component of positions associated with that defaulted average daily volumes of the securities the member’s margin increases beyond Sponsored Member. If large positions in in each asset group over a lookback a specified point. Specifically, FICC the same asset group are being period.27 would reduce the member’s MLA liquidated by multiple Sponsoring FICC would then compare the Charge where the market impact cost of Members, the market impact cost to calculated market impact cost to a a particular portfolio, calculated as part liquidate those positions could increase. portion of the VaR Charge that is of determining the MLA Charge, would The MLA Excess Amount would allocated to positions in each asset be large relative to the one-day volatility address this additional market impact group.28 If the ratio of the calculated charge for that portfolio (i.e., a portion cost by capturing any difference market impact cost to the one-day VaR of the three-day assumed margin period between the calculations of the MLA Charge is greater than a determined of risk). When the ratio of calculated Charge for each sponsored account and threshold, an MLA Charge, as described market impact cost to the one-day for the consolidated portfolio. below, would be applied to that asset volatility charge is lower, FICC would C. Bid-Ask Spread Charge group. Correspondingly, if the ratio of not adjust the MLA Charge. However, as these two amounts is equal to or less the ratio gets higher, FICC would reduce The bid-ask spread refers to the than this threshold, an MLA Charge the MLA Charge. FICC designed this difference between the observed market would not be applied to that asset reduction mechanism to avoid assessing price that a buyer is willing to pay for group. The threshold would be based on unnecessarily large MLA Charges.30 a security and the observed market price an estimate of the market impact cost at which a seller is willing to sell that MLA Excess Amount for GSD security. FICC faces the risk of potential that is incorporated into the calculation 31 of the one-day VaR charge.29 Sponsored Members bid-ask spread transaction costs when liquidating the securities in a defaulted When applicable, an MLA Charge For GSD, the calculation of the MLA member’s portfolio. However, FICC’s would be calculated as a proportion of Charge for a Sponsored Member that current margin methodologies do not the product of (1) the amount by which clears through a single account account for this risk of potential bid-ask the ratio of the calculated market impact sponsored by a Sponsoring Member spread transaction costs to FICC in cost to a portion of the VaR Charge would be the same as described above. connection with liquidating a defaulted allocated to that position exceeds the For a GSD Sponsored Member that member’s portfolio. Therefore, FICC threshold, and (2) a portion of the VaR clears through multiple accounts designed the Bid-Ask Spread Charge to Charge allocated to that asset group. For sponsored by multiple Sponsoring address this deficiency in its current each portfolio, FICC would total the Members, in addition to calculating an margin methodologies. MLA Charges for the positions in each MLA Charge for each account (as The Bid-Ask Spread Charge would be asset group to determine a total MLA described above), FICC would also haircut-based and tailored to different Charge for the member. On a daily basis, calculate an MLA Charge for the groups of assets that share similar bid- FICC would calculate the final MLA Sponsored Member’s consolidated ask spread characteristics.32 FICC would Charge for each member (if applicable), portfolio. to be included as a component of each assign each asset group a specified bid- member’s Required Fund Deposit. If the MLA Charge of the consolidated ask spread haircut rate (measured in In certain circumstances, FICC may be portfolio is not higher than the sum of basis points (‘‘bps’’)) that would be able to partially mitigate the risks that all MLA Charges for each account of the applied to the gross market value of the the MLA Charge is designed to address Sponsored Member, then the Sponsored portfolio’s positions in that particular by extending the time period for Member would only be charged an MLA asset group. FICC would calculate the Charge for each sponsored account, as product of the gross market value of the 26 See id. applicable. However, if the MLA Charge portfolio’s positions in a particular asset 27 Supra note 22; see Notice of Filing, supra note of the consolidated portfolio is higher group and the applicable basis point 5 at 55343. than the sum of all MLA Charges for charge to obtain the bid-ask spread risk 28 As noted earlier, FICC’s margin methodology each account of the Sponsored Member, charge for these positions. FICC would uses a three-day assumed period of risk. For the Sponsored Member would be purposes of this calculation, FICC would use a total the applicable bid-ask spread risk portion of the VaR Charge that is based on a one- charged the amount of such difference day assumed period of risk (the ‘‘one-day VaR (referred to as the ‘‘MLA Excess 32 For GSD, the asset groups would include the Charge’’). Any changes to what FICC determines Amount’’), in addition to the applicable following, each of which share similar bid-ask would be the appropriate portion of the VaR Charge MLA Charge. spread risk profiles: (a) Mortgage pools (‘‘MBS’’); (b) would be subject to FICC’s model risk management TIPS; (c) U.S. agency bonds; and (d) U.S. Treasury governance procedures set forth in the Clearing securities, which would be further segmented into Agency Model Risk Management Framework 30 See Notice of Filing, supra note 5 at 55343–44. separate classes based on maturities as follows: (i) (‘‘Model Risk Management Framework’’). See 31 See GSD Rule 3A, supra note 8. Sponsored Less than five years, (ii) equal to or more than five Securities Exchange Act Release Nos. 81485 Membership at GSD is a program that allows well- years and less than ten years, and (iii) equal to or (August 25, 2017), 82 FR 41433 (August 31, 2017) capitalized members to sponsor their eligible clients more than ten years. Only the MBS asset group is (File No. SR–FICC–2017–014); 84458 (October 19, into GSD membership. Sponsored membership at applicable to MBSD member portfolios. 2018), 83 FR 53925 (October 25, 2018) (File No. SR– GSD offers eligible clients the ability to lend cash FICC would exclude Option Contracts in to-be- FICC–2018–010); 88911 (May 20, 2020), 85 FR or eligible collateral via FICC-cleared delivery- announced (‘‘TBA’’) transactions from the Bid-Ask 31828 (May 27, 2020) (File No. SR–FICC–2020– versus-payment sale and repurchase transactions. Spread Charge because, FICC states that in the event 004). Sponsoring Members facilitate their clients’ GSD of a member default, FICC would liquidate any 29 FICC states that it would review the method for trading activity and act as processing agents on Option Contracts in TBAs in a member’s portfolio calculating the thresholds from time to time, and their behalf for all operational functions including at the intrinsic value of the Option Contract and, any changes would be subject to FICC’s model risk trade submission and settlement with FICC. A therefore, does not face a transaction cost related to management governance procedures set forth in the Sponsored Member may be sponsored by one or the bid-ask spread. Notice of Filing, supra note 5 Model Risk Management Framework. See id. more Sponsoring Members. at 55344.

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charges for each asset class in a Paper Comments activities for which the Commission is 35 member’s portfolio to calculate the Send paper comments in triplicate to the supervisory agency. Section 805(b) member’s total Bid-Ask Spread Charge. Secretary, Securities and Exchange of the Clearing Supervision Act FICC determined the proposed initial Commission, 100 F Street NE, provides the following objectives and haircut rates on an analysis of bid-ask Washington, DC 20549. principles for the Commission’s risk management standards prescribed under spread transaction costs using (1) the All submissions should refer to File Section 805(a):36 results of FICC’s annual member default Number SR–FICC–2020–802. This file • simulation and (2) market data sourced to promote robust risk management; number should be included on the • to promote safety and soundness; from a third-party data vendor. FICC’s subject line if email is used. To help the • to reduce systemic risks; and proposed initial haircut rates are listed Commission process and review your • to support the stability of the in the table below: comments more efficiently, please use broader financial system. only one method. The Commission will Section 805(c) provides, in addition, Haircut post all comments on the Commission’s Asset group (bps) that the Commission’s risk management internet website (http://www.sec.gov/ standards may address such areas as MBS ...... 0.8 rules/sro.shtml). Copies of the risk management and default policies TIPS ...... 2.1 submission, all subsequent and procedures, among others areas.37 U.S. Agency bonds ...... 3.8 amendments, all written statements The Commission has adopted risk U.S. Treasuries (maturing < 5 with respect to the advance notice that management standards under Section years) ...... 0.6 are filed with the Commission, and all 805(a)(2) of the Clearing Supervision U.S. Treasuries (maturing 5–10 written communications relating to the Act and Section 17A of the Exchange years) ...... 0.7 advance notice between the Act (the ‘‘Clearing Agency Rules’’).38 U.S. Treasuries (maturing 10+ Commission and any person, other than The Clearing Agency Rules require, years) ...... 0.7 those that may be withheld from the among other things, each covered public in accordance with the clearing agency to establish, implement, FICC proposes to review the haircut provisions of 5 U.S.C. 552, will be maintain, and enforce written policies rates annually. Based on analyses of available for website viewing and and procedures that are reasonably recent years’ simulation exercises, FICC printing in the Commission’s Public designed to meet certain minimum does not anticipate that these haircut Reference Room, 100 F Street NE, requirements for its operations and risk rates would change significantly year Washington, DC 20549, on official management practices on an ongoing over year. FICC may also adjust the business days between the hours of basis.39 As such, it is appropriate for the haircut rates following its annual model 10:00 a.m. and 3:00 p.m. Copies of such Commission to review advance notices validation review, to the extent the filings will also be available for against the Clearing Agency Rules and results of that review indicate the inspection and copying at the principal the objectives and principles of these current haircut rates are not adequate to office of FICC and FICC’s website at risk management standards as described address the risk presented by https://www.dtcc.com/legal. in Section 805(b) of the Clearing transaction costs from a bid-ask All comments received will be posted Supervision Act. As discussed below, spread.33 without change. Persons submitting the Commission believes the proposal in Finally, FICC would make technical comments are cautioned that we do not the Advance Notice is consistent with changes to the QRM Methodology redact or edit personal identifying the objectives and principles described Documents to re-number the sections information from comment submissions. in Section 805(b) of the Clearing 40 and tables, and update certain section You should submit only information Supervision Act, and in the Clearing titles, as necessary to incorporate the that you wish to make available Agency Rules, in particular Rules 41 MLA Charge and Bid-Ask Spread publicly. All submissions should refer 17Ad–22(e)(4) and (e)(6). Charge into those documents. to File Number SR–FICC–2020–802 and should be submitted on or before A. Consistency With Section 805(b) of II. Solicitation of Comments October 19, 2020. the Clearing Supervision Act The Commission believes that the Interested persons are invited to III. Discussion and Commission Advance Notice is consistent with the submit written data, views, and Findings stated objectives and principles of arguments concerning the foregoing, Although the Clearing Supervision Section 805(b) of the Clearing including whether the advance notice is Act does not specify a standard of Supervision Act. consistent with the Clearing review for an advance notice, the stated The Commission believes that Supervision Act. Comments may be purpose of the Clearing Supervision Act adopting FICC’s proposed MLA Charge submitted by any of the following is instructive: to mitigate systemic risk and Bid-Ask Spread Charge would be methods: in the financial system and promote consistent with the promotion of robust Electronic Comments financial stability by, among other things, promoting uniform risk 35 12 U.S.C. 5464(a)(2). • Use the Commission’s internet management standards for SIFMUs and 36 12 U.S.C. 5464(b). comment form (http://www.sec.gov/ strengthening the liquidity of SIFMUs.34 37 12 U.S.C. 5464(c). Section 805(a)(2) of the Clearing 38 17 CFR 240.17Ad–22. See Securities Exchange rules/sro.shtml); or Act Release No. 68080 (October 22, 2012), 77 FR • Send an email to rule-comments@ Supervision Act authorizes the 66220 (November 2, 2012) (S7–08–11). See also sec.gov. Please include File Number SR– Commission to prescribe regulations Securities Exchange Act Release No. 78961 (September 28, 2016), 81 FR 70786 (October 13, FICC–2020–802 on the subject line. containing risk management standards for the payment, clearing, and 2016) (S7–03–14) (‘‘Covered Clearing Agency Standards’’). FICC is a ‘‘covered clearing agency’’ as settlement activities of designated 33 All proposed changes to the haircuts would be defined in Rule 17Ad–22(a)(5). subject to FICC’s model risk management clearing entities engaged in designated 39 17 CFR 240.17Ad–22. governance procedures set forth in the Model Risk 40 12 U.S.C. 5464(b). Management Framework. See supra note 28. 34 See 12 U.S.C. 5461(b). 41 17 CFR 240.17Ad–22(e)(4) and (e)(6).

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risk management at FICC. As described and Bid-Ask Spread Charge would be Accordingly, the Commission believes above in Section I.B., FICC’s current consistent with promoting safety and that FICC’s adoption of the proposed margin methodologies do not account soundness at FICC. FICC designed the MLA Charge and Bid-Ask Spread for the potential increase in market MLA Charge and Bid-Ask Spread Charge would be consistent with the impact costs that FICC could incur Charge to ensure that FICC collects reduction of systemic risk and when liquidating a defaulted member’s margin amounts sufficient to manage supporting the stability of the broader portfolio where the portfolio contains a FICC’s risk of incurring costs associated financial system. concentration of large positions in a with liquidating defaulted member For the reasons stated above, the particular security or group of securities portfolios. The proposed MLA Charge Commission believes the changes sharing a similar risk profile or in a and Bid-Ask Spread Charge would proposed in the Advance Notice are particular transaction type. generally provide FICC with additional consistent with Section 805(b) of the Additionally, as described above in resources to manage potential losses Clearing Supervision Act.43 Section I.C., FICC’s current margin arising out of a member default. Such an methodologies do not account for the increase in available financial resources B. Consistency With Rule 17Ad– risk of potential bid-ask spread would decrease the likelihood that 22(e)(4)(i) transaction costs when liquidating the losses arising out of a member default Rule 17Ad–22(e)(4)(i) requires that securities in a defaulted member’s would exceed FICC’s resources and FICC establish, implement, maintain portfolio. FICC proposes to address threaten the safety and soundness of and enforce written policies and these respective risks by adding the FICC’s ongoing operations. Accordingly, procedures reasonably designed to MLA Charge and Bid-Ask Spread the Commission believes that adding the effectively identify, measure, monitor, 42 Charge to its margin methodologies. proposed MLA Charge and Bid-Ask and manage its credit exposures to Specifically, the MLA Charge should Spread Charge to FICC’s margin participants and those arising from its better enable FICC to manage the risk of methodologies would be consistent with payment, clearing, and settlement incurring costs associated with the promoting safety and soundness at processes, including by maintaining decreased marketability of a defaulted FICC. sufficient financial resources to cover its member’s portfolio where the portfolio Finally, the Commission believes that credit exposure to each participant fully contains a large position in securities adopting FICC’s proposed MLA Charge with a high degree of confidence.44 sharing similar risk profiles, resulting in and Bid-Ask Spread Charge would be As described above in Section I.B., potentially higher liquidation costs. To avoid excessive MLA Charges, FICC has consistent with reducing systemic risks FICC’s current margin methodologies do identified circumstances that would and supporting the stability of the not account for the risk of a potential warrant reducing a member’s MLA broader financial system. As discussed increase in market impact costs that Charge when FICC could otherwise above, in a member default scenario, FICC could incur when liquidating a partially mitigate the relevant risks by FICC would access the GSD or MBSD defaulted member’s portfolio where the extending the time period for Clearing Fund should the defaulted portfolio contains a large position in liquidating a defaulted member’s member’s own Required Fund Deposit securities sharing similar risk profiles. portfolio beyond the three day period. be insufficient to satisfy losses to FICC Additionally, as described above, FICC’s The Commission views this targeted caused by the liquidation of that current margin methodologies do not reduction in the MLA Charge as a member’s portfolio. FICC proposes to account for the risk of potential bid-ask feature of the proposal that add the MLA Charge and Bid-Ask spread transaction costs when demonstrates a robust approach towards Spread Charge to its margin liquidating the securities in a defaulted managing the relevant risks through methodologies to better manage the member’s portfolio. FICC proposes to appropriate (i.e., not simply ‘‘larger’’) potential costs of liquidating a defaulted address such risks by adding the MLA margin requirements. Additionally, member’s portfolio. FICC proposes to Charge and Bid-Ask Spread Charge to its since FICC’s current margin collect additional margin from members margin methodologies. Adding these methodologies do not account for bid- to cover such costs. This, in turn, could margin charges to FICC’s margin ask spread transaction costs when reduce the possibility that FICC would methodologies should better enable liquidating a defaulted member’s need to mutualize among the non- FICC to collect margin amounts portfolio, the Bid-Ask Spread Charge defaulting members a loss arising out of commensurate with the risk attributes of should enable FICC to manage such the close-out process. Reducing the a broader range of its members’ risks. Accordingly, the Commission potential for loss mutualization could, portfolios than FICC’s current margin believes that adopting the proposed in turn, reduce the potential knock-on methodologies. Specifically, the MLA MLA Charge and Bid-Ask Spread effects to non-defaulting members, their Charge should better enable FICC to Charge would allow for measurement customers, and the broader market manage the risk of increased costs to and targeted mitigation of risks and arising out of a member default. Further, FICC associated with the decreased costs not captured elsewhere in FICC’s the Commission notes that, to the extent marketability of a defaulted member’s current margin methodologies, and that the MLA Charge results in any portfolio where the portfolio contains a would therefore provide for more reduction in members’ large positions in large position in securities sharing comprehensive management of risks in securities with similar risk profiles, it similar risk profiles. Additionally, since a member default scenario, consistent could reduce the potential risk of FICC’s current margin methodologies do with the promotion of robust risk adverse market impacts that can arise not account for bid-ask spread management. from liquidating those large positions. transaction costs associated with Further, the Commission believes that However, the Commission also notes liquidating a defaulted member’s adopting FICC’s proposed MLA Charge that the proposal to reduce the MLA portfolio, the Bid-Ask Spread Charge Charge when FICC could otherwise should enable FICC to manage such 42 The Commission notes that the other clearing partially mitigate the relevant risks risks and costs. agencies it regulates have charges to account for would help ensure that FICC would not these types of risks in their margin methodologies, and that addressing these types of risks has received impose the MLA Charge without an 43 12 U.S.C. 5464(b). a great deal of industry focus in recent years. appropriate risk management basis. 44 17 CFR 240.17Ad–22(e)(4)(i).

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The Commission believes that adding Additionally, as described above in the date of an order by the Commission the MLA Charge and Bid-Ask Spread Section I.A and C, FICC’s current approving Proposed Rule Change SR– Charge to its margin methodologies margin methodologies do not account FICC–2020–009, whichever is later. should enable FICC to more effectively for the risk of incurring bid-ask spread By the Commission. identify, measure, monitor, and manage transaction costs when liquidating the J. Matthew DeLesDernier, its credit exposures in connection with securities in a defaulted member’s liquidating a defaulted member’s portfolio. FICC proposes to address this Assistant Secretary. portfolio that may give rise to (1) risk by adding the Bid-Ask Spread [FR Doc. 2020–21784 Filed 10–1–20; 8:45 am] decreased marketability due to large Charge to its margin methodologies. BILLING CODE 8011–01–P positions of securities sharing similar Adding the MLA Charge and Bid-Ask risk profiles, and (2) bid-ask spread Spread Charge to FICC’s margin transaction costs. Accordingly, the methodologies should better enable SECURITIES AND EXCHANGE Commission believes that adding the FICC to collect margin amounts COMMISSION MLA Charge and Bid-Ask Spread commensurate with the risk attributes of Charge to FICC’s margin methodologies its members’ portfolios than FICC’s [Release No. 34–90024; File No. SR–NYSE– would be consistent with Rule 17Ad- current margin methodologies. 2020–76] 22(e)(4)(i) because these new margin Specifically, the MLA Charge should charges should better enable FICC to better enable FICC to manage the risk of Self-Regulatory Organizations; New maintain sufficient financial resources increased costs to FICC associated with York Stock Exchange LLC; Notice of to cover FICC’s credit exposure to its the decreased marketability of a Filing and Immediate Effectiveness of members fully with a high degree of defaulted member’s portfolio where the Proposed Rule Change to Harmonize confidence.45 portfolio contains a large position in Rules 9261 and 9830 with Recent securities sharing similar risk profiles. Changes by the Financial Industry C. Consistency With Rules 17Ad– Moreover, the proposal to reduce the Regulatory Authority, Inc. 22(e)(6)(i) and (v) MLA Charge when FICC could September 28, 2020. Rule 17Ad–22(e)(6)(i) requires that otherwise partially mitigate the relevant 1 FICC establish, implement, maintain risks demonstrates how the proposal Pursuant to Section 19(b)(1) of the and enforce written policies and Securities Exchange Act of 1934 (the provides an appropriate method for 2 3 procedures reasonably designed to cover measuring credit exposure, in that it ‘‘Act’’) and Rule 19b–4 thereunder, its credit exposures to its participants by seeks to take into account the particular notice is hereby given that on establishing a risk-based margin system circumstances related to a particular September 15, 2020, New York Stock that, at a minimum, considers, and portfolio when determining the MLA Exchange LLC (‘‘NYSE’’ or the produces margin levels commensurate Charge. Additionally, since FICC’s ‘‘Exchange’’) filed with the Securities with, the risks and particular attributes current margin methodologies do not and Exchange Commission of each relevant product, portfolio, and account for bid-ask spread transaction (‘‘Commission’’) the proposed rule market.46 Rule 17Ad–22(e)(6)(v) costs associated with liquidating a change as described in Items I, II, and requires that FICC establish, implement, defaulted member’s portfolio, the Bid- III below, which Items have been maintain and enforce written policies Ask Spread Charge should enable FICC prepared by the self-regulatory and procedures reasonably designed to to manage such risks. organization. The Commission is cover its credit exposures to its Accordingly, the Commission believes publishing this notice to solicit participants by establishing a risk-based that adding the MLA Charge and Bid- comments on the proposed rule change margin system that, at a minimum, uses Ask Spread Charge to FICC’s margin from interested persons. an appropriate method for measuring methodologies would be consistent with I. Self-Regulatory Organization’s credit exposure that accounts for Rules 17Ad–22(e)(6)(i) and (v) because Statement of the Terms of Substance of relevant product risk factors and these new margin charges should better the Proposed Rule Change portfolio effects across products.47 enable FICC to establish a risk-based As described above in Section I.B, margin system that (1) considers and The Exchange proposes to harmonize FICC’s current margin methodologies do produces relevant margin levels Rules 9261 and 9830 with recent not account for the potential increase in commensurate with the risks associated changes by the Financial Industry market impact costs when liquidating a with liquidating member portfolios in a Regulatory Authority, Inc. (‘‘FINRA’’) defaulted member’s portfolio where the default scenario, including decreased that temporarily grants the Chief or portfolio contains a large position in marketability of a portfolio’s securities Deputy Chief Hearing Officer the securities sharing similar risk profiles. due to large positions in securities authority to order that hearings be FICC proposes to address this risk by sharing similar risk profiles and bid-ask conducted by video conference if adding the MLA Charge to its margin transaction costs, and (2) uses an warranted by public health risks posed methodologies. To avoid excessive MLA appropriate method for measuring credit by in-person hearings during the Charges and ensure margin exposure that accounts for such risk ongoing novel coronavirus (‘‘COVID– requirements are commensurate with factors and portfolio effects.48 19’’) pandemic. As proposed, these the relevant risks, FICC also temporary amendments would be in IV. Conclusion contemplates reducing a member’s MLA effect through December 31, 2020. The Charge when FICC could otherwise It is therefore noticed, pursuant to proposed rule change is available on the partially mitigate the relevant risks by Section 806(e)(1)(I) of the Clearing Exchange’s website at www.nyse.com, at extending the time period for Supervision Act, that the Commission the principal office of the Exchange, and liquidating a defaulted member’s does not object to Advance Notice (SR– at the Commission’s Public Reference portfolio beyond the three day period. FICC–2020–802) and that FICC is Room. authorized to implement the proposed 45 Id. change as of the date of this notice or 1 15 U.S.C.78s(b)(1). 46 17 CFR 240.17Ad–22(e)(6)(i). 2 15 U.S.C. 78a. 47 17 CFR 240.17Ad–22(e)(6)(v). 48 17 CFR 240.17Ad–22(e)(6)(i) and (v). 3 17 CFR 240.19b–4.

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II. Self-Regulatory Organization’s cease and desist orders under the Rule hearing officer from OHO will, among Statement of the Purpose of, and 9800 Series. As adopted, the text of Rule other things, preside over the Statutory Basis for, the Proposed Rule 9261 is identical to the counterpart disciplinary hearing, select and chair Change FINRA rule. Rule 9830 is substantially the hearing panel, and prepare and issue In its filing with the Commission, the the same as FINRA’s rule, except for written decisions. The Chief or Deputy 7 self-regulatory organization included conforming and technical amendments. Hearing Officer for all Exchange statements concerning the purpose of, In view of the ongoing spread of disciplinary hearings are currently COVID–19 and its effect on FINRA’s and basis for, the proposed rule change drawn from OHO and are all FINRA adjudicatory functions nationwide, and discussed any comments it received employees. The Exchange believes that FINRA recently filed a temporary rule on the proposed rule change. The text OHO will utilize the same video change to grant FINRA’s Office of of those statements may be examined at conference protocol and processes for Hearing Officers (‘‘OHO’’) and the the places specified in Item IV below. Exchange matters under the RSA as it National Adjudicatory Council (‘‘NAC’’) The Exchange has prepared summaries, proposes for FINRA matters. the authority to conduct certain Given that FINRA and its OHO set forth in sections A, B, and C below, hearings by video conference, if administers disciplinary hearings on the of the most significant parts of such warranted by the current COVID–19- Exchange’s behalf, and given that the statements. related public health risks posed by in- public health concerns addressed by A. Self-Regulatory Organization’s person hearings. Among the rules FINRA’s amendments apply equally to Statement of the Purpose of, and FINRA amended were Rules 9261 and the Exchange’s disciplinary hearings, Statutory Basis for, the Proposed Rule 9830.8 the Exchange proposes to temporarily Change FINRA represented in its filing that its amend its disciplinary rules to allow protocol for conducting hearings by FINRA to conduct virtual hearings on its 1. Purpose video conference would ensure that behalf. The Exchange proposes to harmonize such hearings maintain fair process for Rules 9261 (Evidence and Procedure in the parties by, among other things, Proposed Rule Change Hearing) and 9830 (Hearing) with recent FINRA’s use of a high quality, secure Rule 9261(b) states that if a changes by FINRA to its Rules 9261 and and user-friendly video conferencing disciplinary hearing is held, a party 9830 that temporarily grants to the Chief service and provide thorough shall be entitled to be heard in-person, or Deputy Chief Hearing Officer the instructions, training and technical by counsel, or by the party’s authority to order that hearings be support to all hearing participants.9 representative. Absent an agreement by conducted by video conference if According to FINRA, the proposed all parties to proceed in another warranted by public health risks posed changes were a reasonable interim manner, Exchange disciplinary hearings by in-person hearings during the solution to allow FINRA’s critical are in-person. As noted, the Chief and ongoing COVID–19 pandemic. As adjudicatory processes to continue to Deputy Hearing Officers for all proposed, these temporary amendments function while protecting the health and Exchange and cross-market matters are would be in effect through December 31, safety of hearing participants as FINRA supplied by OHO and are FINRA 2020.4 works towards resuming in-person employees. Accordingly, absent an hearings in a manner that is compliant agreement by all parties to proceed in Background with the current guidance of public another manner, under Rule 9261(b) the In 2013, the NYSE adopted health authorities.10 Chief or Deputy Hearing Officer disciplinary rules that are, with certain Pursuant to a regulatory services conducts disciplinary hearings in- exceptions, substantially the same as the agreement (‘‘RSA’’), FINRA’s OHO will person. FINRA Rule 8000 Series and Rule 9000 administer all aspects of adjudications, Similarly, Rule 9830 outlines the Series, and which set forth rules for including assigning hearing officers to requirements for hearings for temporary conducting investigations and serve as NYSE hearing officers. A and permanent cease and desist orders. enforcement actions.5 The NYSE Rule 9830(a), however, does not specify disciplinary rules were implemented on 7 See 2013 Approval Order, 78 FR at 15394, n.7 that a party shall be entitled to be heard , 2013.6 & 15400; 2013 Notice, 78 FR at 5228 & 5234. in-person, by counsel, or by the party’s In adopting disciplinary rules 8 See Securities Exchange Act Release Nos. 83289 representative. (September 2, 2020), 85 FR 55712 (September 9, modeled on FINRA’s rules, the NYSE 2020) (SR–FINRA–2020–027) (‘‘FINRA Filing’’). Consistent with FINRA’s temporary adopted the hearing and evidentiary FINRA also proposed to temporarily amend FINRA amendment to FINRA Rules 9261 and processes set forth in Rule 9261 and in Rules 1015 and 9524. FINRA Rule 1015 governs the 9830, the Exchange proposes to Rule 9830 for hearings in matters process by which an applicant for new or temporarily grant the Chief or Deputy continuing membership can appeal a decision involving temporary and permanent rendered by FINRA’s Department of Member Chief Hearing Officer temporary Supervision under FINRA Rule 1014 or 1017 and authority to order, upon consideration 4 The Exchange may submit a separate rule filing request a hearing which would be conducted by a of the current COVID–19-related public to extend the expiration date of the proposed subcommittee of the NAC. See id. The Exchange has health risks presented by an in-person temporary amendments if the Exchange requires not adopted FINRA Rule 1015. FINRA Rule 9524 temporary relief from the rule requirements governs the process by which a statutorily hearing, that a hearing under those rules identified in this proposal beyond December 31, disqualified member firm or associated person can be conducted by video conference. The 2020. The amended NYSE rules will revert back to appeal the Department’s recommendation to deny proposed rule change will permit OHO their current state at the conclusion of the a firm or sponsoring firm’s application to the NAC. to make an assessment, based on critical temporary relief period and any extension thereof. See id. Under the Exchange’s version of Rule 9524, COVID–19 data and criteria and the 5 See Securities Exchange Act Release Nos. 68678 if the Exchange’s Chief Regulatory Officer rejects (, 2013), 78 FR 5213 (, 2013) the application, the member organization or guidance of health and security (SR–NYSE–2013–02) (‘‘2013 Notice’’), 69045 applicant may request a review by the Exchange consultants, whether an in-person (, 2013), 78 FR 15394 (March 11, 2013) (SR– Board of Directors. This differs from FINRA’s hearing would compromise the health NYSE–2013–02) (‘‘2013 Approval Order’’), and process, which provides for a hearing before the and safety of the hearing participants 69963 (, 2013), 78 FR 42573 (, 2013) NAC and further consideration by the FINRA Board (SR–NYSE–2013–49). of Directors. such that the hearing should proceed by 6 See NYSE Information Memorandum 13–8 ( See FINRA Filing, 85 FR at 55713. video conference. As noted, FINRA has 24, 2013). 10 See id. adopted a detailed and thorough

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protocol to ensure that hearings The Exchange believes that the hearing participant’s access to conducted by video conference will proposed rule change supports the connectivity and technology in maintain fair process for the parties.11 objectives of the Act by providing scheduling a video conference hearing The Exchange believes that this is a greater harmonization between and can also, at their discretion, allow reasonable procedure to follow in Exchange rules and FINRA rules of a party or witness to participate by hearings under Rules 9261 and 9830 similar purpose, resulting in less telephone, if necessary, to address such chaired by a FINRA employee.12 burdensome and more efficient access issues.18 To effectuate these changes, the regulatory compliance. As previously For the same reasons, the Exchange Exchange proposes to add the following noted, the text of Rule 9261 is identical believes that the proposed rule change sentence to Rule 9261(b): to the counterpart FINRA rule and Rule is designed to provide a fair procedure Upon consideration of the current public 9830 is substantially the same as for the disciplining of members and health risks presented by an in-person FINRA’s rule, except for conforming and persons associated with members, hearing, the Chief Hearing Officer or Deputy technical amendments. As such, the consistent with Sections 6(b)(7) and 6(d) Chief Hearing Officer may, on a temporary proposed rule change will foster of the Act.19 The Exchange believes that basis, determine that the hearing shall be cooperation and coordination with the temporary proposed rule change conducted, in whole or in part, by video persons engaged in facilitating strikes an appropriate balance between conference. transactions in securities and will providing fair process and enabling the The proposed text is identical to the remove impediments to and perfect the Exchange to fulfill its statutory language adopted by FINRA.13 mechanism of a free and open market obligations to protect investors and Similarly, the Exchange proposes to and a national market system. maintain fair and orderly markets while add the following text to Rule 9830(a): The Exchange believes that the accounting for the significant health and Upon consideration of the current public proposed temporary rule change will safety risks of in-person hearings health risks presented by an in-person permit the Exchange to effectively stemming from the outbreak of COVID– hearing, the Chief Hearing Officer or Deputy conduct hearings during the COVID–19 19. Chief Hearing Officer may, on a temporary pandemic in situations where in-person basis, determine that the hearing shall be hearings present likely public health B. Self-Regulatory Organization’s conducted, in whole or in part, by video risks. The ability to conduct hearings by Statement on Burden on Competition conference. video conference will thereby permit The Exchange does not believe that Once again, the proposed language is the adjudicatory functions of the the proposed rule change will impose identical to the language adopted by Exchange’s disciplinary rules to any burden on competition that is not FINRA.14 continue unabated, thereby avoiding necessary or appropriate in furtherance protracted delays. The Exchange 2. Statutory Basis of the purposes of the Act. The believes that this is especially important proposed rule change is not intended to The proposed rule change is in matters where temporary and address competitive issues but is rather consistent with Section 6(b) of the permanent cease and desist orders are intended solely to provide temporary 15 Act, in general, and furthers the sought because the proposed rule relief given the impacts of the COVID– 16 objectives of Section 6(b)(5), in change would enable those hearings to 19 pandemic. In its filing, FINRA particular, because it is designed to proceed without delay, thereby enabling provides an abbreviated economic prevent fraudulent and manipulative the Exchange to take immediate action impact assessment maintaining that the acts and practices, to promote just and to stop significant, ongoing customer changes are necessary to temporarily equitable principles of trade, to foster harm, to the benefit of the investing rebalance the attendant benefits and cooperation and coordination with public. costs of the obligations under FINRA persons engaged in facilitating Conducting hearings via video Rules 1015, 9261, 9524 and 9830 in transactions in securities, to remove conference will give the parties and response to the impacts of the COVID– impediments to, and perfect the adjudicators simultaneous visual and 19 pandemic that is equally applicable mechanism of, a free and open market oral communication without the risks to the changes the Exchange proposes.20 and a national market system and, in inherent in physical proximity during a The Exchange accordingly incorporates general, to protect investors and the pandemic. Temporarily permitting FINRA’s abbreviated economic impact public interest. Additionally, the hearings for disciplinary matters to assessment by reference. Exchange believes the proposed rule proceed by video conference maintains change is designed to provide a fair fair process by providing respondents a C. Self-Regulatory Organization’s procedure for the disciplining of timely opportunity to address and Statement on Comments on the members and persons associated with potentially resolve any allegations of Proposed Rule Change Received From members, consistent with Sections misconduct. Members, Participants, or Others 6(b)(7) and 6(d) of the Act.17 As noted, FINRA will use a high No written comments were solicited quality, secure video conferencing or received with respect to the proposed 11 technology with features that will allow See FINRA Filing, 85 FR at 55713. rule change. 12 The Exchange notes, as did FINRA, that SEC’s the parties to reasonably approximate Rules of Practice pertaining to temporary cease-and- those tasks that are typically performed III. Date of Effectiveness of the desist orders provide that parties and witnesses at an in-person hearing, such as sharing Proposed Rule Change and Timing for may participate by telephone or, in the Commission’s discretion, through the use of documents, marking documents, and Commission Action alternative technologies that allow remote access, utilizing breakout rooms. FINRA will The Exchange has filed the proposed such as a video link. See SEC Rule of Practice also provide training for participants on rule change pursuant to Section 511(d)(3); Comment (d); see FINRA Filing, 85 FR at how to use the video conferencing 55714, n. 21. 19(b)(3)(A)(iii) of the Act 21 and Rule 13 See FINRA Filing, 85 FR at 55712. platform and detailed guidance on the 14 Id. procedures that will govern such 18 See text accompanying notes 9–10, supra. 15 15 U.S.C. 78f(b). hearings. Moreover, the Chief or Deputy 19 15 U.S.C. 78f(b)(7) and 78f(d). 16 15 U.S.C. 78f(b)(5). Chief Hearing Officer may take into 20 FINRA Filing, 85 FR at 55716. 17 15 U.S.C. 78f(b)(7) and 78f(d). consideration, among other things, a 21 15 U.S.C. 78s(b)(3)(A)(iii).

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19b–4(f)(6) thereunder.22 Because the change that are filed with the APPLICANTS: Frost Family of Funds (the proposed rule change does not: (i) Commission, and all written ‘‘Trust’’) a Delaware statutory trust Significantly affect the protection of communications relating to the registered under the Act as an open-end investors or the public interest; (ii) proposed rule change between the management investment company on impose any significant burden on Commission and any person, other than behalf of all existing series; 1and Frost competition; and (iii) become operative those that may be withheld from the Investment Advisors, LLC (‘‘Frost’’), a prior to 30 days from the date on which public in accordance with the Delaware limited liability company that it was filed, or such shorter time as the provisions of 5 U.S.C. 552, will be is registered as an investment adviser Commission may designate, if available for website viewing and under the Investment Advisers Act of consistent with the protection of printing in the Commission’s Public 1940. investors and the public interest, the Reference Room, on business days FILING DATES: The application was filed proposed rule change has become between the hours of 10:00 a.m. and on July 8, 2020. 3:00 p.m., located at 100 F Street NE, effective pursuant to Section 19(b)(3)(A) HEARING OR NOTIFICATION OF HEARING: An of the Act and Rule 19b–4(f)(6)(iii) Washington, DC 20549. Copies of such order granting the requested relief will thereunder. filing also will be available for be issued unless the Commission orders inspection and copying at the principal At any time within 60 days of the a hearing. Interested persons may office of the Exchange. All comments filing of such proposed rule change, the request a hearing by emailing the received will be posted without change. Commission summarily may Commission’s Secretary at Secretarys- Persons submitting comments are temporarily suspend such rule change if [email protected] and serving applicants cautioned that we do not redact or edit it appears to the Commission that such with a copy of the request by email. personal identifying information from action is necessary or appropriate in the Hearing requests should be received by comment submissions. You should public interest, for the protection of the Commission by 5:30 p.m. on submit only information that you wish investors, or otherwise in furtherance of October 26, 2020, and should be to make available publicly. All the purposes of the Act. If the accompanied by proof of service on the Commission takes such action, the submissions should refer to File Number SR–NYSE–2020–76 and should applicants, in the form of an affidavit, Commission shall institute proceedings or, for lawyers, a certificate of service. under Section 19(b)(2)(B) 23 of the Act to be submitted on or before October 23, 2020. Pursuant to rule 0–5 under the Act, determine whether the proposed rule hearing requests should state the nature change should be approved or For the Commission, by the Division of of the writer’s interest, any facts bearing disapproved. Trading and Markets, pursuant to delegated upon the desirability of a hearing on the authority.24 IV. Solicitation of Comments matter, the reason for the request, and J. Matthew DeLesDernier, the issues contested. Persons who wish Interested persons are invited to Assistant Secretary. submit written data, views and to be notified of a hearing may request [FR Doc. 2020–21765 Filed 10–1–20; 8:45 am] notification by emailing the arguments concerning the foregoing, BILLING CODE 8011–01–P including whether the proposed rule Commission’s Secretary at Secretarys- change is consistent with the Act. [email protected]. ADDRESSES: Comments may be submitted by any of SECURITIES AND EXCHANGE Secretary, U.S. Securities the following methods: COMMISSION and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090; Electronic Comments [Investment Company Act Release No. Applicants: Michael Beattie, SEI • Use the Commission’s internet 34031; File No. 812–15142] Investments, One Freedom Valley Drive, comment form (http://www.sec.gov/ Oaks, PA 19456, [email protected]. Frost Family of Funds and Frost rules/sro.shtml); or Investment Advisors, LLC FOR FURTHER INFORMATION CONTACT: • Send an email to rule-comments@ Stephan N. Packs, Senior Counsel, at sec.gov. Please include File Number SR– September 29, 2020. (202) 551–6853, or David J. Marcinkus, NYSE–2020–76 on the subject line. AGENCY: Securities and Exchange Branch Chief, at (202) 551–6825 Paper Comments Commission (‘‘Commission’’). (Division of Investment Management, ACTION: Notice. Chief Counsel’s Office). • Send paper comments in triplicate SUPPLEMENTARY INFORMATION: The to Secretary, Securities and Exchange Notice of an application for an order following is a summary of the Commission, 100 F Street NE, pursuant to: (a) Section 6(c) of the application. The complete application Washington, DC 20549–1090. Investment Company Act of 1940 may be obtained via the Commission’s All submissions should refer to File (‘‘Act’’) granting an exemption from website by searching for the file Number SR–NYSE–2020–76. This file sections 18(f) and 21(b) of the Act; (b) number, or an applicant using the section 12(d)(1)(J) of the Act granting an number should be included on the Company name box, at http:// exemption from section 12(d)(1) of the subject line if email is used. To help the www.sec.gov/search/search.htm or by Act; (c) sections 6(c) and 17(b) of the Commission process and review your calling (202) 551–8090. comments more efficiently, please use Act granting an exemption from sections Summary of the Application: only one method. The Commission will 17(a)(1), 17(a)(2) and 17(a)(3) of the Act; 1. Applicants request an order that post all comments on the Commission’s and (d) section 17(d) of the Act and rule would permit Applicants to participate internet website (http://www.sec.gov/ 17d–1 under the Act to permit certain rules/sro.shtml). Copies of the joint arrangements and transactions. 1 Certain of the Funds (defined below) may be submission, all subsequent Applicants request an order that would money market funds that comply with Rule 2a–7 amendments, all written statements permit certain registered management under the Act (each a ‘‘Money Market Fund’’). None with respect to the proposed rule investment companies to participate in of the existing Funds is a Money Market Fund, but if Money Market Funds rely on this relief in the a joint lending and borrowing facility. future, they typically will not participate as 22 17 CFR 240.19b–4(f)(6). borrowers because such Funds rarely need to 23 15 U.S.C. 78s(b)(2)(B). 24 17 CFR 200.30–3(a)(12). borrow cash to meet redemptions.

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in an interfund lending facility where one Fund will not exceed 5% of the any provision of section 12(d)(1) if the each Fund could lend money directly to lending Fund’s net assets.4 exemption is consistent with the public and borrow money directly from other 4. Applicants assert that the facility interest and the protection of investors. Funds to cover unanticipated cash does not raise the concerns underlying Section 17(b) of the Act authorizes the shortfalls, such as unanticipated section 12(d)(1) of the Act given that the Commission to grant an order redemptions or sales fails.2 The Funds Funds are part of the same group of permitting a transaction otherwise will not borrow under the facility for investment companies and there will be prohibited by section 17(a) if it finds leverage purposes and the loans’ no duplicative costs or fees to the that (a) the terms of the proposed Funds.5 Applicants also assert that the duration will be no more than 7 days. transaction, including the compensation proposed transactions do not raise the to be paid or received, are fair and 3 concerns underlying sections 17(a)(1), reasonable and do not involve 2. Applicants anticipate that the 17(a)(3), 17(d) and 21(b) of the Act as overreaching on the part of any person proposed facility would provide a the Funds would not engage in lending concerned; (b) the proposed transaction borrowing Fund with a source of transactions that unfairly benefit is consistent with the policies of each liquidity at a rate lower than the bank insiders or are detrimental to the Funds. registered investment company borrowing rate at times when the cash Applicants state that the facility will involved; and (c) the proposed position of the Fund is insufficient to offer both reduced borrowing costs and transaction is consistent with the meet temporary cash requirements. In enhanced returns on loaned funds to all general purposes of the Act. Rule 17d– addition, Funds making short-term cash participating Funds and each Fund 1(b) under the Act provides that in loans directly to other Funds would would have an equal opportunity to passing upon an application filed under earn interest at a rate higher than they borrow and lend on equal terms based the rule, the Commission will consider otherwise could obtain from investing on an interest rate formula that is whether the participation of the their cash in repurchase agreements or objective and verifiable. With respect to registered investment company in a the relief from section 17(a)(2) of the certain other short-term money market joint enterprise, joint arrangement or Act, Applicants note that any collateral instruments. Thus, Applicants assert profit sharing plan on the basis pledged to secure an interfund loan proposed is consistent with the that the facility would benefit both would be subject to the same conditions provisions, policies and purposes of the borrowing and lending Funds. imposed by any other lender to a Fund Act and the extent to which such 3. Applicants agree that any order that imposes conditions on the quality participation is on a basis different from granting the requested relief will be of or access to collateral for a borrowing or less advantageous than that of the subject to the terms and conditions (if the lender is another Fund) or the other participants. stated in the application. Among others, same or better conditions (in any other For the Commission, by the Division of 6 the Adviser, through a designated circumstance). Investment Management, under delegated committee, would administer the 5. Applicants also believe that the authority. facility as a disinterested fiduciary as limited relief from section 18(f)(1) of the J. Matthew DeLesDernier, part of its duties under the investment Act that is necessary to implement the Assistant Secretary. management agreements with each facility (because the lending Funds are not banks) is appropriate in light of the [FR Doc. 2020–21838 Filed 10–1–20; 8:45 am] Fund and would receive no additional conditions and safeguards described in BILLING CODE 8011–01–P fee as compensation for its services in the application and because the open- connection with the administration of end Funds would remain subject to the the facility. The facility would be SECURITIES AND EXCHANGE requirement of section 18(f)(1) that all COMMISSION subject to oversight and certain borrowings of the open-end Fund, approvals by a Fund’s Board, including, including combined interfund loans and [Release No. 34–90020; File No. SR–NYSE– among others, approval of the interest bank borrowings, have at least 300% 2020–79] rate formula and of the method for asset coverage. allocating loans across Funds, as well as 6. Section 6(c) of the Act permits the Self-Regulatory Organizations; New review of the process in place to Commission to exempt any persons or York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of evaluate the liquidity implications for transactions from any provision of the Proposed Rule Change to Extend its the Funds. A Fund’s aggregate Act if such exemption is necessary or Waiver of the Application of Certain of outstanding interfund loans will not appropriate in the public interest and consistent with the protection of the Shareholder Approval exceed 15% of its net assets at the time Requirements in Section 312.03 of the of the loan, and the Fund’s loans to any investors and the purposes fairly intended by the policy and provisions of NYSE Listed Company Manual the Act. Section 12(d)(1)(J) of the Act Through December 31, 2020 Subject to 2 Applicants request that the order apply to the Certain Conditions Applicants and to any existing or future series of provides that the Commission may the Trust and to any existing or future registered exempt any person, security, or September 28, 2020. open-end management investment company or transaction, or any class or classes of Pursuant to Section 19(b)(1) 1 of the existing or future series thereof for which Frost or persons, securities, or transactions, from any successor thereto or an investment adviser Securities Exchange Act of 1934 (the 2 3 controlling, controlled by, or under common ‘‘Act’’) and Rule 19b–4 thereunder, 4 Under certain circumstances, a borrowing Fund control with Frost or any successor thereto serves notice is hereby given that, on will be required to pledge collateral to secure the as investment adviser (each a ‘‘Fund’’ and, loan. September 24, 2020, New York Stock collectively, the ‘‘Funds’’ and each such investment 5 Applicants state that the obligation to repay an Exchange LLC (‘‘NYSE’’ or the adviser an ‘‘Adviser’’). For purposes of the interfund loan could be deemed to constitute a ‘‘Exchange’’) filed with the Securities requested order, ‘‘successor’’ is limited to any entity security for the purposes of sections 17(a)(1) and and Exchange Commission (the that results from a reorganization into another 12(d)(1) of the Act. jurisdiction or a change in the type of a business 6 Applicants state that any pledge of securities to organization. secure an interfund loan could constitute a 1 15 U.S.C.78s(b)(1). 3 Any Fund, however, will be able to call a loan purchase of securities for purposes of section 2 15 U.S.C. 78a. on one business day’s notice. 17(a)(2) of the Act. 3 17 CFR 240.19b–4.

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‘‘Commission’’) the proposed rule COVID–19, including severe limitations Related Party 7 if the number of shares change as described in Items I and II on companies’ ability to operate their of common stock to be issued, or if the below, which Items have been prepared businesses and periods of volatility in number of shares of common stock into by the self-regulatory organization. The the U.S. and global equity markets. The which the securities may be convertible Commission is publishing this notice to Exchange implemented the Waiver or exercisable, exceeds either 1% of the solicit comments on the proposed rule because it believed that it was likely number of shares of common stock or change from interested persons. that many listed companies would have 1% of the voting power outstanding urgent liquidity needs during this crisis before the issuance. A limited exception I. Self-Regulatory Organization’s period due to lost revenues and permits cash sales to Related Parties and Statement of the Terms of Substance of maturing debt obligations. In those their affiliates that meet a market price the Proposed Rule Change circumstances, the Exchange believed test set forth in the rule (the ‘‘Minimum The Exchange proposes to extend that listed companies would need to Price’’) 8 and that relate to no more than through and including December 31, access additional capital that might not 5% of the company’s outstanding 2020 its waiver, subject to certain be available in the public equity or common stock. However, this exception conditions, of the application of certain credit markets. may only be used if the Related Party in of the shareholder approval Since the implementation of the question has Related Party status solely requirements set forth in Section 312.03 Waiver a number of listed companies because it is a substantial security of the NYSE Listed Company Manual have completed capital raising holder of the company. (‘‘Manual’’). The proposed rule change transactions that would not have been • Transactions of 20% of More. is available on the Exchange’s website at possible without the flexibility provided Section 312.03(c) of the Manual requires www.nyse.com, at the principal office of by the Waiver. While equity indices shareholder approval of any transaction the Exchange, and at the Commission’s have recovered from the decline relating to 20% or more of the Public Reference Room. initially associated with the COVID–19 company’s outstanding common stock crisis, ongoing economic disruption and or 20% of the voting power outstanding II. Self-Regulatory Organization’s uncertainty associated with the before such issuance other than a public Statement of the Purpose of, and pandemic have caused many listed offering for cash. Section 312.03(c) Statutory Basis for, the Proposed Rule companies to continue to face includes an exception for transactions Change circumstances in which their businesses involving a cash sale of the company’s In its filing with the Commission, the and revenues are severely curtailed. securities that comply with the self-regulatory organization included Such companies continue to experience Minimum Price requirement and also statements concerning the purpose of, difficulty in accessing liquidity from the meet the following definition of a ‘‘bona and basis for, the proposed rule change public markets. In addition, there is fide private financing,’’ as set forth in and discussed any comments it received continued uncertainty as to the course Section 312.04(g): on the proposed rule change. The text the COVID–19 pandemic may take in ‘‘Bona fide private financing’’ refers to a sale in which either: of those statements may be examined at the coming months and the possibility Æ the places specified in Item IV below. of further disruption related to COVID– a registered broker-dealer purchases the securities from the issuer with a The Exchange has prepared summaries, 19 exists. Consequently, the Exchange view to the private sale of such set forth in sections A, B, and C below, believes it is appropriate to extend the of the most significant parts of such securities to one or more purchasers; or application of the Waiver for an Æ the issuer sells the securities to statements. additional period through and including multiple purchasers, and no one such A. Self-Regulatory Organization’s December 31, 2020, to provide more purchaser, or group of related Statement of the Purpose of, and the flexibility to listed companies that need purchasers, acquires, or has the right to Statutory Basis for, the Proposed Rule to access capital in the current unusual acquire upon exercise or conversion of Change economic conditions. the securities, more than five percent of Section 312.03 of the Manual, which the shares of the issuer’s common stock 1. Purpose requires listed companies to acquire shareholder approval prior to certain Pursuant to an earlier proposed rule 7 Under Section 312.03 of the Manual, a ‘‘Related change,4 the Exchange waived through kinds of equity issuances, imposes Party’’ includes ‘‘(1) a director, officer or substantial significant limitations on the ability of security holder of the company (each a ‘‘Related and including June 30, 2020, subject to Party’’); (2) a subsidiary, affiliate or other closely- certain conditions, certain of the a listed company to engage in the sort of large private placement transaction related person of a Related Party; or (3) any shareholder approval requirements set company or entity in which a Related Party has a forth in Section 312.03 of the Manual described above. The most important substantial direct or indirect interest;’’ (the ‘‘Waiver’’). Subsequently, the limitations are as follows: 8 Section 312.04(i) defines the ‘‘Minimum Price’’ • Issuance to a Related Party. as follows: ‘‘Minimum Price’’ means a price that is Exchange extended the Waiver for the Subject to an exception for early stage the lower of: (i) The Official Closing Price period through and including companies set forth therein, Section immediately preceding the signing of the binding 5 agreement; or (ii) the average Official Closing Price September 30, 2020. The Exchange 312.03(b) of the Manual requires now proposes to extend the Waiver for the five trading days immediately preceding the shareholder approval of any issuance to signing of the binding agreement. through and including December 31, a director, officer or substantial security Section 312.04(j) defines ‘‘Official Closing Price’’ 2020. holder 6 of the company (each a as follows: ‘‘Official Closing Price’’ of the issuer’s The U.S. and global economies have common stock means the official closing price on ‘‘Related Party’’) or to an affiliate of a experienced unprecedented disruption the Exchange as reported to the Consolidated Tape immediately preceding the signing of a binding as a result of the ongoing spread of 6 For purposes of Section 312.03(b), Section agreement to issue the securities. For example, if 312.04(e) provides that: ‘‘An interest consisting of the transaction is signed after the close of the 4 See Securities Exchange Act Release No. 34– less than either five percent of the number of shares regular session at 4:00 p.m. Eastern Standard Time 88572 (, 2020); 85 FR 20323 (, 2020) of common stock or five percent of the voting power on a Tuesday, then Tuesday’s official closing price (SR–NYSE–2020–30). outstanding of a company or entity shall not be is used. If the transaction is signed at any time 5 See Securities Exchange Act Release No. 89219 considered a substantial interest or cause the holder between the close of the regular session on Monday (July 2, 2020; 85 FR 41640 (July 10, 2020) (SR– of such an interest to be regarded as a substantial and the close if the regular session on Tuesday, NYSE–2020–58). security holder.’’ then Monday’s official closing price is used.

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or more than five percent of the issuer’s 312.03(b) 10 without complying with the Section 312.03(c) in relation to a private voting power before the sale.’’ numerical limitations of that rule, as placement transaction regardless of its The Exchange expects that it will long as the sale is in a cash transaction size or the number of participating continue to be the case that certain that meets the Minimum Price investors or the amount of securities companies during the course of the requirement and also meets the other purchased by any single investor, ongoing unusual economic conditions requirements noted above. As provided provided that the transaction is a sale of will urgently need to obtain new capital by Section 312.03(a), any transaction the company’s securities for cash at a by selling equity securities in private benefitting from the proposed waiver price that meets the Minimum Price placements. will still be subject to shareholder requirement. If any purchaser in a In many cases, such transactions may approval if required under any other transaction benefiting from this waiver involve sales to existing investors in the applicable rule, including the equity is a Related Party or other person company or their affiliates that would compensation requirements of Section subject to Section 312.03(b), such exceed the applicable 1% and 5% limits 303A.08 and the change of control transaction must be reviewed and of Section 312.03(b). Given the ongoing requirements of Section 312.03(d). approved by the company’s audit economic disruption associated with the Existing large investors are often the committee or a comparable committee COVID–19 pandemic, the Exchange only willing providers of much-needed comprised solely of independent proposes to continue its partial waiver capital to companies undergoing directors. The Exchange notes that, as a of the application of Section 312.03(b) difficulties and the Exchange believes result of the proposed extension of the for the period as of the date of this filing that it is appropriate to increase Waiver, the Exchange’s application of through and including December 31, companies’ flexibility to access this Section 312.03(c) will continue to be 2020, with the Waiver specifically source of capital for an additional consistent during the Waiver period limited to transactions that involve the limited period. The Exchange notes that, with the application of NASDAQ sale of the company’s securities for cash as a result of the extension of the Marketplace Rule 5635(d) with respect at a price that meets the Minimum Price Waiver, the Exchange’s application of to private placements relating to 20% or requirement as set forth in Section Section 312.03(b) will be consistent more of a company’s common stock or 9 312.04. In addition, to qualify for the with the application of NASDAQ voting power outstanding before such Waiver, a transaction must be reviewed Marketplace Rule 5635(a) 11 to sales of a transaction.12 and approved by the company’s audit listed company’s securities to related The Exchange notes that these committee or a comparable committee parties during the Waiver period. temporary emergency waivers would comprised solely of independent Many private placement transactions simply continue to provide NYSE listed directors. under the current market conditions companies with the flexibility on a This Waiver will continue to not be may also exceed the 20% threshold temporary emergency basis to applicable to any transaction involving established by Section 312.03(c). consummate transactions without the stock or assets of another company Therefore, given the ongoing economic shareholder approval that would not where any director, officer or substantial disruption associated with the COIVD– require shareholder approval under the security holder of the company has a 19 pandemic, the Exchange also rules of the NASDAQ Stock Market, as 5% or greater interest (or such persons proposes to continue for the period the specific limitations the Exchange is collectively have a 10% or greater through and including December 31, proposing to waive do not exist in the interest), directly or indirectly, in the 2020, for purposes of the bona fide applicable NASDAQ rules.13 company or assets to be acquired or in financing exception to the 20% 2. Statutory Basis the consideration to be paid in the requirement, its waiver of the 5% The proposed rule change is transaction or series of related limitation for any sale to an individual transactions and the present or potential consistent with Section 6(b) of the investor in a bona fide private financing issuance of common stock, or securities Act,14 in general, and furthers the pursuant to Section 312.03(c) and to convertible into or exercisable for objectives of Section 6(b)(5) of the Act,15 permit companies to undertake a bona common stock, could result in an in particular, in that it is designed to fide private financing during that period increase in outstanding common shares prevent fraudulent and manipulative in which there is only a single or voting power of 5% or more (i.e., a acts and practices, to promote just and purchaser. As provided by Section transaction which would require equitable principles of trade, to foster 312.03(a), any transaction benefitting shareholder approval under NASDAQ cooperation and coordination with from the Waiver will still be subject to Marketplace Rule 5635(a)). Specifically, persons engaged in facilitating shareholder approval if required under the Waiver will continue to not be transactions in securities, to remove any other applicable rule, including the applicable to a sale of securities by a impediments to and perfect the equity compensation requirements of listed company to any person subject to mechanism of a free and open market Section 303A.08 and the change of the provisions of Section 312.03(b) in a and a national market system, and, in control requirements of Section transaction, or series of transactions, general, to protect the public interest 312.03(d). Any transaction benefitting whose proceeds will be used to fund an and the interests of investors, and from the Waiver must be a sale of the acquisition of stock or assets of another because it is not designed to permit company’s securities for cash at a price company where such person has a unfair discrimination between that meets the Minimum Price direct or indirect interest in the customers, issuers, brokers, or dealers. requirement. company or assets to be acquired or in As a result of the economic disruption The effect of the proposed extension related to the ongoing spread of the the consideration to be paid for such of the Waiver would be that a listed acquisition. company would be exempt from the The effect of the extension of the 12 See supra note 11 which also applies to the shareholder approval requirement of Waiver would be to allow companies to waivers available under Section 312.03(c). 13 sell their securities to Related Parties See NASDAQ Marketplace Rule 5635, 10 See supra note 6. including specifically subsections (a) and (d) and other persons subject to Section 11 If a company is raising capital through a thereof. transaction, or series of transaction, via the waiver, 14 15 U.S.C. 78f(b). 9 See supra note 8. they cannot use such capital to fund an acquisition. 15 15 U.S.C. 78f(b)(5).

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COVID–19 virus, certain listed C. Self-Regulatory Organization’s Exchange stated, among other things, its companies may experience urgent Statement on Comments on the belief that the proposed Waiver does not liquidity needs that they are unable to Proposed Rule Change Received From give rise to any novel investor meet by raising funds in the public Members, Participants, or Others protection concerns, as the proposed equity or credit markets. The proposed No written comments were solicited rule change conforms the NYSE’s rule change is designed to provide or received with respect to the proposed shareholder approval requirements temporary relief from certain of the rule change. temporarily to those of NASDAQ and NYSE’s shareholder approval would not permit any transactions III. Date of Effectiveness of the requirements in relation to stock without shareholder approval that are Proposed Rule Change and Timing for not permitted on another exchange. In issuances to provide companies with Commission Action addition, the Exchange stated that all additional flexibility to raise funds by The Exchange has filed the proposed transactions utilizing the Waiver would selling equity in private placement have to satisfy the Minimum Price transactions during the current unusual rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 16 and Rule requirement contained in the rule and economic conditions provided such 19b–4(f)(6) thereunder.17 Because the be reviewed and approved by the transactions meet certain conditions, proposed rule change does not: (i) issuer’s audit committee or comparable such as the Minimum Price as defined Significantly affect the protection of committee of the board comprised in Section 312.04(i). The proposed investors or the public interest; (ii) entirely of independent directors if any waivers are consistent with the impose any significant burden on transactions benefitting from the Waiver protection of investors because any competition; and (iii) become operative involve a Related Party or affiliates of a transaction benefiting from the waivers prior to 30 days from the date on which Related Party, as described above.22 will not, in the Exchange’s view, be it was filed, or such shorter time as the Furthermore, the Exchange has stated dilutive to the company’s existing Commission may designate, if that, as provided by Section 312.04(a) of shareholders as it will be subject to a consistent with the protection of the Manual, any transaction benefitting minimum market price requirement and investors and the public interest, the from the proposed Waiver will still be because the audit committee or a proposed rule change has become subject to shareholder approval if comparable committee comprised solely effective pursuant to Section 19(b)(3)(A) required under any other applicable of independent directors will review of the Act 18 and Rule 19b–4(f)(6)(iii) rule, including the equity compensation and approve any transaction benefitting thereunder.19 requirements of Section 303A.08 of the from a waiver that involves a Related A proposed rule change filed under Manual and the change of control 20 requirements of Section 312.03(d) of the Party or affiliates of a Related Party. In Rule 19b–4(f)(6) normally does not Manual. The Exchange also noted that addition, as provided by Section become operative prior to 30 days after the date of the filing. However, pursuant the proposed Waiver is temporary in 312.03(a), any transaction benefitting to Rule 19b–4(f)(6)(iii),21 the nature and will only be applied through from the proposed waiver will still be Commission may designate a shorter and including December 31, 2020. subject to shareholder approval if time if such action is consistent with the The Commission notes that the required under any other applicable protection of investors and the public proposed rule change would provide a rule, including the equity compensation interest. The Exchange has asked the temporary waiver of certain shareholder requirements of Section 303A.08 and Commission to waive the 30-day approval requirements under certain the change of control requirements of operative delay so that the proposal may conditions in light of current economic Section 312.03(d). All companies listed become operative immediately upon conditions due to COVID–19. As noted on the Exchange would be eligible to filing. by NYSE, the Waiver is consistent with take advantage of the proposed The Exchange believes that the Nasdaq’s shareholder approval rules temporary waivers. Waiver of the operative delay would be and would not permit any transactions consistent with the protection of without shareholder approval that is not B. Self-Regulatory Organization’s investors and the public interest permitted on another exchange.23 In Statement on Burden on Competition because, in the Exchange’s view, the addition, all transactions utilizing the Waiver would have to satisfy the The Exchange does not believe that economic disruption caused by the global spread of the COVID–19 virus Minimum Price requirement which is a the proposed rule change would impose may give rise to companies experiencing market related price, as defined above.24 any burden on competition that is not urgent liquidity needs which they may Further, all transactions subject to the necessary or appropriate in furtherance need to meet by undertaking Waiver that involve Related Parties or of the purposes of the Act. The transactions that would benefit from the affiliates of Related Parties would have proposed rule change is not designed to proposed relief. In support of its request to be approved by the listed company’s address any competitive issues but to waive the 30-day operative delay, the rather is designed to provide temporary 22 The Commission notes that, as described in the purpose section above, all transactions utilizing the relief from certain of the NYSE’s 16 15 U.S.C. 78s(b)(3)(A)(iii). 17 Waiver for purposes of Section 312.03(b) would be shareholder approval requirements in 17 CFR 240.19b–4(f)(6). subject to review and approval by an audit relation to stock issuances to provide 18 15 U.S.C. 78s(b)(3)(A). committee or comparable body of independent companies with additional flexibility to 19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– directors. As to transactions utilizing the temporary 4(f)(6)(iii) requires the Exchange to give the Waiver under Section 312.03(c) all transactions raise funds by selling equity in private Commission written notice of the Exchange’s intent involving Related Parties or other persons subject placement transactions during the to file the proposed rule change, along with a brief to Section 312.03(b), as described above, must be current unusual economic conditions. description and text of the proposed rule change, reviewed and approved by the company’s audit In addition, the proposed waivers will at least five business days prior to the date of filing committee or a comparable committee comprised of the proposed rule change, or such shorter time solely of independent directors. simply temporarily conform the as designated by the Commission. The Commission 23 In addition, as noted above, if a company is treatment of transactions benefitting has waived the five business day notification raising capital through a transaction, or series of from the waivers to their treatment requirement for this proposed rule change. transactions, via the Waiver, they cannot use such 20 under the comparable NASDAQ rules. 17 CFR 240.19b–4(f)(6). capital to fund an acquisition. 21 17 CFR 240.19b–4(f)(6)(iii). 24 See supra note 8.

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audit committee or comparable Paper Comments STATUS: This meeting will be closed to committee of the board comprised • Send paper comments in triplicate the public. entirely of independent directors. In to Secretary, Securities and Exchange MATTERS TO BE CONSIDERED: addition, the Commission notes that the Commission, 100 F Street NE, Commissioners, Counsel to the Waiver of the shareholder approval Washington, DC 20549–1090. Commissioners, the Secretary to the provisions only applies to the specific All submissions should refer to File provisions in Sections 312.03(b) and (d) Commission, and recording secretaries Number SR–NYSE–2020–79. This file will attend the closed meeting. Certain of the Manual discussed above and any number should be included on the transaction utilizing the Waiver would staff members who have an interest in subject line if email is used. To help the the matters also may be present. still be subject to all other shareholder Commission process and review your approval requirements including, for comments more efficiently, please use In the event that the time, date, or example, the equity compensation only one method. The Commission will location of this meeting changes, an requirements of Section 303A.08 and post all comments on the Commission’s announcement of the change, along with the change of control requirements of internet website (http://www.sec.gov/ the new time, date, and/or place of the Section 312.03(d). The Commission also rules/sro.shtml). Copies of the meeting will be posted on the notes that the proposal is a temporary submission, all subsequent Commission’s website at https:// measure designed to allow companies to amendments, all written statements www.sec.gov. raise necessary capital at market related with respect to the proposed rule The General Counsel of the prices without shareholder approval change that are filed with the Commission, or his designee, has under the limited conditions discussed Commission, and all written certified that, in his opinion, one or above in response to current, unusual communications relating to the economic conditions. For these reasons, more of the exemptions set forth in 5 proposed rule change between the U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) the Commission believes that waiver of Commission and any person, other than and (10) and 17 CFR 200.402(a)(3), the 30-day operative delay is consistent those that may be withheld from the (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and with the protections of investors and the public in accordance with the (a)(10), permit consideration of the public interest. According, the provisions of 5 U.S.C. 552, will be Commission hereby waives the 30-day available for website viewing and scheduled matters at the closed meeting. operative delay and designates the printing in the Commission’s Public The subject matter of the closed proposal operative upon filing.25 Reference Room, 100 F Street NE, meeting will consist of the following At any time within 60 days of the Washington, DC 20549 on official topic: business days between the hours of filing of such proposed rule change, the Institution and settlement of injunctive 10:00 a.m. and 3:00 p.m. Copies of the Commission summarily may actions temporarily suspend such rule change if filing also will be available for it appears to the Commission that such inspection and copying at the principal Institution and settlement of action is necessary or appropriate in the office of the Exchange. All comments administrative proceedings public interest, for the protection of received will be posted without change. Resolution of litigation claims and Persons submitting comments are investors, or otherwise in furtherance of Other matters relating to enforcement cautioned that we do not redact or edit the purposes of the Act. If the proceedings Commission takes such action, the personal identifying information from Commission shall institute proceedings comment submissions. You should At times, changes in Commission under Section 19(b)(2)(B) 26 of the Act to submit only information that you wish priorities require alterations in the determine whether the proposed rule to make available publicly. All scheduling of meeting agenda items that change should be approved or submissions should refer to File may consist of adjudicatory, disapproved. Number SR–NYSE–2020–79 and should examination, litigation, or regulatory be submitted on or before October 23, matters. IV. Solicitation of Comments 2020. CONTACT PERSON FOR MORE INFORMATION: Interested persons are invited to For the Commission, by the Division of Trading and Markets, pursuant to delegated For further information; please contact submit written data, views, and authority.27 Vanessa A. Countryman from the Office arguments concerning the foregoing, J. Matthew DeLesDernier, of the Secretary at (202) 551–5400. including whether the proposed rule Assistant Secretary. change is consistent with the Act. Dated: September 30, 2020. Comments may be submitted by any of [FR Doc. 2020–21767 Filed 10–1–20; 8:45 am] Vanessa A. Countryman, the following methods: BILLING CODE 8011–01–P Secretary. [FR Doc. 2020–21956 Filed 9–30–20; 11:15 am] Electronic Comments SECURITIES AND EXCHANGE BILLING CODE 8011–01–P • Use the Commission’s internet COMMISSION comment form (http://www.sec.gov/ rules/sro.shtml); or Sunshine Act Meetings • Send an email to rule-comments@ TIME AND DATE: 2:00 p.m. on Wednesday, sec.gov. Please include File Number SR– October 7, 2020. NYSE–2020–79 on the subject line. PLACE: The meeting will be held via remote means and/or at the 25 For purposed only of waiving the 30-day Commission’s headquarters, 100 F operative delay, the Commission has considered the proposed rule’s impact on efficiency, competition, Street NE, Washington, DC 20549. and capital formation. See 15 U.S.C. 78c(f). 26 15 U.S.C. 78s(b)(2)(B). 27 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE Commission shall either approve or revolving fund to cover the program’s COMMISSION disapprove, or institute proceedings to liabilities and certain program expenses. determine whether to approve or SBA’s rules provide that the amount [Release No. 34–90023; File No. SR–NYSE– disapprove, the proposed rule change of the fees to be paid by the Surety and 2020–67] (File No. SR–NYSE–2020–67). the Principal will be determined by SBA and published in Notices in the Federal Self-Regulatory Organizations; New For the Commission, by the Division of Register from time to time. See 13 CFR York Stock Exchange LLC, Notice of Trading and Markets, pursuant to delegated 6 115.32(b) and (c) and 115.66. On July Designation of a Longer Period for authority. 30, 2018, SBA published a notification Commission Action on a Proposed J. Matthew DeLesDernier, in the Federal Register (83 FR 36658) Rule Change to Amend Article IV, Assistant Secretary. that announced that, for all guaranteed Section 4.05 of the Thirteenth [FR Doc. 2020–21764 Filed 10–1–20; 8:45 am] bonds approved during the one year Amended and Restated Operating BILLING CODE 8011–01–P period beginning October 1, 2018 Agreement of the Exchange through September 30, 2019, the Surety September 28, 2020. fee would decrease from 26% of the SMALL BUSINESS ADMINISTRATION On August 7, 2020, New York Stock bond premium to 20% of the bond premium, and the Principal fee would Exchange LLC (‘‘NYSE’’ or the Surety Bond Guarantee Program Fees ‘‘Exchange’’) filed with the Securities decrease from $7.29 per thousand and Exchange Commission AGENCY: U.S. Small Business dollars of the contract amount to $6 per (‘‘Commission’’), pursuant to Section Administration. thousand dollars of the contract amount 19(b)(1) of the Securities Exchange Act ACTION: Notification of Surety Bond (the decrease in the Surety and of 1934 (‘‘Act’’) 1 and Rule 19b-4 Guarantee Program Fees. Principal fees referred to, collectively, thereunder,2 a proposed rule change to as ‘‘lower fees’’). The announcement amend Article IV, Section 4.05 of the SUMMARY: This document announces stated that SBA will evaluate whether Thirteenth Amended and Restated that the U.S. Small Business the lower fees will result in an increase Operating Agreement of the Exchange to Administration (SBA) is adopting the in the bond activity level of the SBG allow the use of regulatory fines for guarantee fees in the amounts that SBA Program and, if so, whether any such charitable donations. The proposed rule has been charging during the temporary increased level of activity will generate sufficient revenues to offset the reduced change was published for comment in fee reduction initiative that began fee amounts. SBA invited comments on the Federal Register on August 25, October 1, 2018 and continues through this temporary initiative and received a 2020.3 The Commission has received no September 30, 2020. These guarantee total of eleven comments, with nine comment letters on the proposed rule fees are charged to all Surety companies comments from surety companies and change. and Principals on each guaranteed bond agents and two comments from trade Section 19(b)(2) of the Act 4 provides (other than a bid bond) issued in SBA’s associations, all of which expressed that within 45 days of the publication of Surety Bond Guarantee (SBG) Program. DATES: The fees described in this support for the lower fees. notice of the filing of a propose rule SBA subsequently published a change, or within such longer period up document will be adopted as of October 1, 2020 and will apply to all SBA surety notification in the Federal Register (84 to 90 days as the Commission may FR 40466) extending the lower fees bond guarantees approved on or after designate if it find such longer period to through September 30, 2020 to provide October 1, 2020. be appropriate and published its reasons additional time for SBA to evaluate the for so finding or as to which the self- FOR FURTHER INFORMATION CONTACT: fee reduction due to the Government regulatory organization consents, the Jermaine Perry, Management Analyst, lapse of appropriation, which spanned Commission shall either approve the Office of Surety Guarantees; (202) 401– from , 2018 through proposed rule change, disapprove the 8275 or [email protected]. , 2019. During the extension, proposed rule change, or institute SUPPLEMENTARY INFORMATION: Under its SBA continued its evaluation into how proceedings to determine whether the SBG Program, the SBA guarantees a lower fees affect the SBG Program, proposed rule change should be certain percentage of bid, payment, and including program utilization by surety disapproved. The 45th day after performance bonds for small and companies, surety agents and small publication of the Notice for the emerging contractors who cannot obtain businesses; the size and characteristics proposed rule change is , surety bonds through regular of the portfolio; and the risk level of the 2020. The Commission is extending this commercial channels. The SBA program, including cash flow and 45-day period. guarantee incentivizes Sureties to defaults. A final report of the evaluation The Commission finds that it is provide bonding for small businesses study conducted by SBA (which appropriate to designate a longer period and thereby assists small businesses in covered the period between October 1, within which to take action on the obtaining greater access to contracting 2018 and December 31, 2019) will be proposed rule change so that it has opportunities. Pursuant to its statutory published on www.sba.gov/evaluation. sufficient time to consider the proposed authority to ‘‘establish such fee or fees In addition to the report and the rule change. Accordingly, pursuant to for small business concerns and public comments in support of the Section 19(b)(2) of the Act,5 the premium or premiums for sureties as it lower fees, SBA has considered the Commission designates , deems reasonable and necessary,’’ and effect of the lower fees on the annual 2020, as the date by which the to administer the SBG Program ‘‘on a cashflow (fees collected minus claims prudent and economically justifiable paid) and the reserves in the SBG 1 15 U.S.C. 78s(b)(1). basis,’’ 15 U.S.C. 694b(h), SBA assesses Program’s revolving fund. The annual 2 17 CFR 240.19b–4. a guarantee fee against both the small cashflow during the period of the 3 See Securities Exchange Act Release No. 89615 (August 19, 2020), 85 FR 52392 (August 25, 2020) business concern (the Principal) and the temporary fee reductions, between (SR–NYSE–2020–67). Surety and deposits these fees into a October 1, 2018 and September 21, 4 15 U.S.C. 78s(b)(2). 2020, maintained a surplus, resulting in 5 15 U.S.C. 78s(b)(2). 6 17 CFR 200.30–3(a)(31). an increase in the reserves in the

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revolving fund. SBA has determined Guide and all other appropriate SBA percentage points (i.e., decreasing the that the lower fees are reasonable to Secondary Market documents. minimum maturity ratio by 500 basis maintain sufficient funds in the DATES: This change will apply to SBA points). SBA does not expect a 5 revolving fund to cover the cost of 7(a) loan pools with an issue date on or percentage point reduction in the anticipated losses in the SBG program. after October 1, 2020. minimum maturity ratio to have an Although the report on the evaluation ADDRESSES: Address comments adverse impact on either the program or study found that the lower fees did not concerning this Notice to John M. Wade, the participants in the program. increase the number or values of bonds Chief Secondary Market Division, U.S. Therefore, effective October 1, 2020, all during the fee evaluation period, the Small Business Administration, 409 3rd guaranteed portions of loans in lower fees charged to the Principal and Street SW, Washington, DC 20416; or, Standard Pools and WAC Pools Surety will reduce the cost of bonding [email protected]. presented for settlement with SBA’s to small businesses, and result in a FOR FURTHER INFORMATION CONTACT: John Fiscal Transfer Agent will be required to projected average annual cost savings of M. Wade, Chief, Secondary Market have a minimum maturity ratio of at $3.5 million for Principals and Sureties. Division at 202–205–3647 or least 89.0%. SBA is making this change In addition, the evaluation report [email protected]. pursuant to Section 5(g)(2) of the Small indicated that ‘‘higher volume surety SUPPLEMENTARY INFORMATION: The Business Act, 15 U.S.C. 634(g)(2). producers were more likely to respond Secondary Market Improvements Act of SBA will continue to monitor loan more positively or optimistically to the 1984, 15 U.S.C. 634(f) through (h), and pool characteristics and will potential benefits of continuing or authorized SBA to guarantee the timely provide notification of additional increasing the [fee] reductions.’’ payment of principal and interest on changes as necessary. It is important to In light of the above, SBA has decided Pool Certificates. A Pool Certificate note that there is no change to SBA’s to adopt the lower fees of 20% of the represents a fractional undivided obligation to honor its guaranty of the bond premium for the Surety fee and $6 interest in a ‘‘Pool,’’ which is an amounts owed to Registered Holders of per thousand dollars of the contract aggregation of SBA guaranteed portions Pool Certificates and that such guaranty amount for the Principal fee, and will of loans made by SBA Lenders under continues to be backed by the full faith continue to apply these lower fees to all section 7(a) of the Small Business Act, and credit of the United States. SBA surety bond guarantees approved 15 U.S.C. 636(a). In order to support the This program change will be on or after October 1, 2020. SBA will timely payment guaranty requirement, incorporated as necessary into SBA’s actively monitor the performance of the SBA established the Master Reserve Secondary Market Guide and all other SBG program to ensure that the fees are Fund (MRF), which serves as a appropriate SBA Secondary Market reasonable and necessary and allow mechanism to cover the cost of SBA’s documents. As indicated above, this SBA to administer the SBG program on timely payment guaranty. Borrower change will be effective for Standard a prudent and economically justifiable payments on the guaranteed portions of Pools and WAC Pools with an issue date basis. pooled loans, as well as SBA guaranty on or after October 1, 2020. Authority: 15 U.S.C. 694b(h); 13 CFR payments on defaulted pooled loans, are Dated: September 29, 2020. 115.32(b) and (c) and 115.66. deposited into the MRF. Funds are held William M. Manger, Dated: September 29, 2020. in the MRF until distributions are made Associate Administrator, Office of Capital William Manger, to investors (Registered Holders) of Pool Access. Certificates. The interest earned on the Associate Administrator/Chief of Staff, Office [FR Doc. 2020–21832 Filed 10–1–20; 8:45 am] borrower payments and the SBA of Capital Access. BILLING CODE P guaranty payments deposited into the [FR Doc. 2020–21876 Filed 9–29–20; 4:15 pm] MRF supports the timely payments BILLING CODE 8026–03–P made to Registered Holders. From time to time, SBA provides DEPARTMENT OF TRANSPORTATION SMALL BUSINESS ADMINISTRATION guidance to SBA Pool Assemblers on the required loan and pool Federal Aviation Administration Change to SBA Secondary Market characteristics necessary to form a Pool. Program These characteristics include, among Public Notice for Waiver of other things, the minimum number of Aeronautical Land Use Assurance; AGENCY: Small Business Administration. guaranteed portions of loans required to Nampa Municipal Airport, Nampa, ACTION: Notice of change to secondary form a Pool, the allowable difference Idaho market program. between the highest and lowest gross and net note rates of the guaranteed AGENCY: Federal Aviation SUMMARY: The purpose of this Notice is portions of loans in a Pool, and the Administration (FAA), Department of to inform the public that the Small minimum maturity ratio of the Transportation (DOT). Business Administration (SBA) is guaranteed portions of loans in a Pool. ACTION: Notice. making a change to its Secondary The minimum maturity ratio is equal to Market Loan Pooling Program. SBA is the ratio of the shortest and the longest SUMMARY: Notice is being given that the decreasing the minimum maturity ratio remaining term to maturity of the FAA is considering a request from the for both SBA Standard Pools and guaranteed portions of loans in a Pool. Nampa Municipal Airport, Airport Weighted-Average Coupon (WAC) Pools Based on SBA’s expectations as to the Superintendent to change certain by 500 basis points, to 89.0%. The performance of future Pools, SBA has portions of the airport from aeronautical change described in this Notice is being determined that for pools formed on or use to non-aeronautical use at the made to cover the estimated cost of the after October 1, 2020, SBA Pool Nampa Municipal Airport, Nampa, ID. timely payment guaranty for newly Assemblers may increase the difference The request consists of 6 parcels, or formed SBA 7(a) loan pools. This between the shortest and the longest portions thereof that are depicted on the change will be incorporated, as needed, remaining term of the guaranteed Airport’s current Exhibit A—Airport into the SBA Secondary Market Program portions of loans in a Pool by 5 Property Map.

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DATES: Comments are due within 30 DEPARTMENT OF TRANSPORTATION published. 44 U.S.C. 3507(b)–(c); 5 CFR days of the date of the publication of 1320.12(d); see also 60 FR 44978, 44983, this notice in the Federal Register. Federal Railroad Administration Aug. 29, 1995. OMB believes the 30-day [Docket No. FRA–2020–0027–N–25] notice informs the regulated community ADDRESSES: Written comments can be to file relevant comments and affords provided to Gary M. Gates, Civil Proposed Agency Information the agency adequate time to digest Engineer, Helena Airports District Collection Activities; Comment public comments before it renders a Office, 2725 Skyway Drive Suite 2, Request decision. 60 FR 44983, Aug. 29, 1995. Helena, MT 59602, (406) 449–5271. Therefore, respondents should submit AGENCY: Federal Railroad FOR FURTHER INFORMATION CONTACT: Mr. their respective comments to OMB Administration (FRA), Department of within 30 days of publication to best Monte Hasl, Airport Superintendent, Transportation (DOT). Nampa Municipal Airport, 411 3rd ensure having their full effect. ACTION: Notice of information collection; Street South, Nampa Idaho 83651 or Comments are invited on the request for comment. Gary M. Gates, Civil Engineer, Helena following ICR regarding: (1) Whether the information collection activities are Airports District Office, 2725 Skyway SUMMARY: Under the Paperwork necessary for FRA to properly execute Drive Suite 2, Helena, MT 59602, (406) Reduction Act of 1995 (PRA) and its its functions, including whether the 449–5271. Documents reflecting this implementing regulations, this notice information will have practical utility; FAA action may be reviewed at the announces that FRA is forwarding the (2) the accuracy of FRA’s estimates of Information Collection Request (ICR) above locations. the burden of the information collection abstracted below to the Office of activities, including the validity of the SUPPLEMENTARY INFORMATION: Under the Management and Budget (OMB) for methodology and assumptions used to provisions of Title 49, U.S.C. 47153(c), review and comment. The ICR describes determine the estimates; (3) ways for and 47107(h)(2), the FAA is considering the information collection and its FRA to enhance the quality, utility, and a proposal from the Airport expected burden. On July 16, 2020, FRA clarity of the information being Superintendent, Nampa Municipal published a notice providing a 60-day collected; and (4) ways to minimize the Airport, to change a portion of the period for public comment on the ICR. Nampa Municipal Airport from burden of information collection DATES: Interested persons are invited to activities on the public, including the aeronautical use to non-aeronautical use submit comments on or before in order to relocate a portion of an use of automated collection techniques November 2, 2020. or other forms of information existing roadway outside of the Runway ADDRESSES: Written comments and technology. Protection Zone (RPZ). A total of 6 recommendations for the proposed ICR The summaries below describe the parcels, consisting of approximately should be sent within 30 days of ICR 1 that FRA will submit for OMB 4.68 acres were included in the request. publication of this notice to clearance as the PRA requires: The FAA has reviewed the request and www.reginfo.gov/public/do/PRAMain. Title: Railroad Safety Appliance determined that all of the parcels or Find the particular ICR by selecting Standards. portions thereof in the request package ‘‘Currently under 30-day Review—Open OMB Control Number: 2130–0594. can be released from aeronautical use. for Public Comments’’ or by using the Abstract: The information collection The land will remain under the City of search function. associated with 49 CFR part 231 is used Nampa ownership and will be leased at FOR FURTHER INFORMATION CONTACT: Ms. by FRA to promote and enhance the safe fair market value for non-aeronautical Hodan Wells, Information Collection placement and securement of safety revenue generation. The revenue will Clearance Officer, Office of Railroad appliances on modern rail equipment by support the Airports aviation needs, Safety, Regulatory Analysis Division, establishing a process for the review and including upcoming airport Federal Railroad Administration, approval of existing industry standards. development projects. The proposed use telephone (202) 493–0440, email: In 2011, FRA amended the regulations of this property is considered [email protected]. related to safety appliance arrangements compatible with other airport operations SUPPLEMENTARY INFORMATION: The PRA, by permitting railroad industry in accordance with FAA’s Policy and 44 U.S.C. 3501–3520, and its representatives to submit requests for Procedures Concerning the Use of implementing regulations, 5 CFR part the approval of existing industry Airport Revenue, published in Federal 1320, require Federal agencies to issue standards relating to the safety Register on February 16, 1999. two notices seeking public comment on appliance arrangements on newly information collection activities before Issued in Helena, Montana on September constructed railroad cars, locomotives, OMB may approve paperwork packages. 28, 2020. tenders, or other rail vehicles in lieu of See 44 U.S.C. 3506, 3507; 5 CFR 1320.8 the specific provisions contained in part Steven L. Engebrecht, through 1320.12. On July 16, 2020, FRA 231. Acting Manager,Helena Airports District published a 60-day notice in the Federal Type of Request: Extension with Office. Register soliciting comment on the ICR change (revised estimates) of a currently [FR Doc. 2020–21780 Filed 10–1–20; 8:45 am] for which it is now seeking OMB approved collection. BILLING CODE 4910–13–P approval. See 85 FR 43298. FRA Affected Public: Businesses. received no comments in response to Form(s): N/A. this notice. Before OMB decides whether to 1 After an internal agency review, FRA adjusts the approve these proposed collections of ICR’s total estimated annual responses from 7 information, it must provide 30 days for responses to 6 responses, consistent with FRA’s public comment. Federal law requires experience of one response approximately every two months. FRA does not anticipate the filing of OMB to approve or disapprove any statement of interests under 49 CFR paperwork packages between 30 and 60 231.35(b)(2)(iii), thus decreasing the burden hours days after the 30-day notice is from 38 hours to 37 hours.

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Respondent Universe: Railroads/ Paragraph S8.1.4 and Table I–a of noncompliance is inconsequential as it railroad industry representatives/rail FMVSS No. 108, Lamps, Reflective relates to motor vehicle safety. labor unions/general public. Devices, and Associated Equipment. (49 Porsche submitted the following Frequency of Submission: On CFR 571.108). Porsche filed a views and arguments in support of its occasion. noncompliance report dated July 24, petition: 1 Total Estimated Annual Responses: 6. 2019, pursuant to 49 CFR part 573, 1. The installation height Total Estimated Annual Burden: 37 Defect and Noncompliance requirements of reflex reflectors as hours. Responsibility and Reports. Porsche defined by paragraph S8.1.4 of FMVSS Total Estimated Annual Burden Hour subsequently petitioned NHTSA on No. 108 are intended to assure a Dollar Cost Equivalent: $2,849. August 20, 2019, for an exemption from sufficient luminous intensity of the Under 44 U.S.C. 3507(a) and 5 CFR the notification and remedy reflex reflectors towards the source of 1320.5(b) and 1320.8(b)(3)(vi), FRA requirements of 49 U.S.C. Chapter 301 illumination. Although the rear reflex informs all interested parties that a on the basis that this noncompliance is reflectors’ installation height falls respondent is not required to respond inconsequential as it relates to motor slightly below the specified minimum to, conduct, or sponsor a collection of vehicle safety, pursuant to 49 U.S.C. height by 0.20 inches (5 mm), Porsche information that does not display a 30118(d) and 30120(h) and 49 CFR part has confirmed that the rear reflex currently valid OMB control number. 556, Exemption for Inconsequential reflectors meet or exceed all applicable (Authority: 44 U.S.C. 3501–3520) Defect or Noncompliance. FMVSS requirements regarding the Notice of receipt of Porsche’s petition luminous intensity performance as Brett A. Jortland, stated under § 571.108, S14 and all Deputy Chief Counsel. was published with a 30-day public comment period, on , 2020, in other relevant requirements of FMVSS [FR Doc. 2020–21836 Filed 10–1–20; 8:45 am] the Federal Register (85 FR 412). No No. 108 of paragraphs S8.1 and S8.2. BILLING CODE 4910–06–P Porsche provided a copy of the comments were received. To view the photometric test results for the rear petition and all supporting documents reflex reflectors, which Porsche believes log onto the Federal Docket DEPARTMENT OF TRANSPORTATION shows that the installation height does Management System (FDMS) website at not affect the performance of the https://www.regulations.gov/. Then National Highway Traffic Safety luminous intensity of the rear reflex follow the online search instructions to Administration reflectors or the visibility of the subject locate docket number ‘‘NHTSA–2019– [Docket No. NHTSA–2019–0094; Notice 2] vehicles. 0094.’’ 2. Porsche is unaware of any Porsche Cars North America, Inc., II. Vehicles Involved accidents, injuries, warranty claims or Grant of Petition for Decision of customer complaints related to the Approximately 2,610 MY 2018 Inconsequential Noncompliance slight shortfall of the rear reflex Porsche 911 GT3 motor vehicles, reflectors’ installation height. The AGENCY: National Highway Traffic manufactured between , 2017, absence of indicant data supports the Safety Administration (NHTSA), and December 21, 2018, are potentially conclusion that the minimal deviation Department of Transportation (DOT). involved. in mounting height does not affect the ACTION: Grant of petition. III. Noncompliance performance of the rear reflectors or the SUMMARY: Porsche Cars North America, visibility of the subject vehicles. Porsche explains that the 3. Porsche notes that NHTSA has Inc. has determined that certain model noncompliance is that the subject previously granted a similar petition.2 year (MY) 2018 Porsche 911 GT3 motor vehicles are equipped with rear reflex In that petition, Harley-Davidson Motor vehicles do not fully comply with reflectors that do not meet the height Company, Inc. described the Federal Motor Vehicle Safety Standard requirements as specified in paragraph noncompliance with FMVSS No. 108 (FMVSS) No. 108, Lamps, Reflective S8.1.4 and Table I–a of FMVSS No. 108. where the rear reflex reflectors were Devices, and Associated Equipment. Specifically, the rear reflex reflectors are mounted an average of 0.3 inches to 0.7 Porsche filed a noncompliance report mounted approximately 0.20 inches inches below the required 15-inch dated July 24, 2019. Porsche below the required 15 inches above the height. NHTSA determined that this subsequently petitioned NHTSA on road surface. The actual height above noncompliance, where the deviation August 20, 2019, for a decision that the the road surface is approximately 14.8 from the specified height was even subject noncompliance is inches. greater than in the present case, was inconsequential as it relates to motor inconsequential to motor vehicle safety vehicle safety. This document IV. Rule Requirements based primarily on the lack of reduction announces the grant of Porsche’s Paragraph S8.1.4 and Table I–a of in conspicuity as compared to petition for inconsequential FMVSS No. 108 includes the compliant vehicles. Porsche suggests noncompliance. requirements relevant to this petition. that its noncompliant vehicles are also FOR FURTHER INFORMATION CONTACT: The reflective devices should not be equally conspicuous. Leroy Angeles, Office of Vehicle Safety mounted less than 15 inches and no 4. The purpose of the FMVSS No. 108 Compliance, the National Highway more than 60 inches in height. reflex reflector requirement is to prevent Traffic Safety Administration (NHTSA), V. Summary of Porsche’s Petition crashes by permitting early detection of telephone (202) 366–5304, facsimile an unlighted motor vehicle at an (202) 366–3081. The following views and arguments intersection or when parked on or by SUPPLEMENTARY INFORMATION: presented in this section are the views the side of the road, and the height and arguments provided by Porsche. requirement is intended ‘‘to ensure I. Overview They do not reflect the views of the adequate reflex reflector performance Porsche has determined that certain Agency. MY 2018 Porsche 911 GT3 motor Porsche described the subject 1 See Docket Number ‘‘NHTSA–2019–0094–001’’. vehicles do not fully comply with noncompliance and stated that the 2 See 79 FR 69558, , 2014.

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relative to headlamps that would each petition is evaluated on its own Accordingly, the Agency has not found illuminate them.’’ 3 Porsche stated that merits. In some cases, the marginal many such noncompliances the photometry performance of the nature of a noncompliance might be one inconsequential.5 reflex reflectors in the subject vehicles factor in analyzing if a noncompliance An important issue to consider in well exceeds the minimum performance is inconsequential to safety. In this case, determining inconsequentiality based standards outlined in FMVSS No. 108, Porsche showed the results of several upon NHTSA’s prior decisions on Table XVI. Based on the photometry photometric analyses performed on the noncompliance issues was the safety performance of the reflectors in the subject reflex reflectors which included risk to individuals who experience the subject vehicles, and the fact that the partially masking the reflex reflector to type of event against which the recall vehicles meet or exceed the shift its mounting center. The test data would otherwise protect.6 NHTSA also requirements of paragraphs S8.l and showed passing photometric results does not consider the absence of S8.2 of FMVSS No. 108, with regard to when the photometric performance of complaints or injuries to show that the reflection performance, Porsche believes the reflex reflector was measured for all issue is inconsequential to safety. ‘‘Most the vehicles satisfy the safety objectives partially masked scenarios which set the importantly, the absence of a complaint of the standard. center point at or above the minimum does not mean there have not been any 5. The noncompliance issue has been required 15 inches. Given the specific safety issues, nor does it mean that there corrected in production vehicles and all circumstances of this case, the Agency will not be safety issues in the future.’’ 7 vehicles currently being produced meet finds the petitioner’s study helpful in ‘‘[T]he fact that in past reported cases applicable mounting height assessing the safety risk of this non- good luck and swift reaction have requirements. compliance. NHTSA has concluded that prevented many serious injuries does 6. The mounting height of the reflex the test data provided by Porsche is not mean that good luck will continue reflectors complies with the minimum sufficient to grant this petition. The to work.’’ 8 height requirements of the United purpose of the mounting height is to aid Arguments that only a small number Nations ECE regulations. Those in the visibility of the reflex reflector of vehicles or items of motor vehicle regulations specify a minimum from other road users’ line of sight. equipment are affected have also not mounting height of 250 mm (9.84 While the centroid of the reflex reflector justified granting an inconsequentiality inches) for rear retro-reflectors. See UN is mounted below the minimum height, petition.9 Similarly, NHTSA has R48, § 6.14.4.2. The reflex reflectors in the size of the subject reflex reflector is rejected petitions based on the assertion the subject Porsche vehicles, with a large enough to ensure that there is a that only a small percentage of vehicles mounting height of 14.8 inches, are well sufficient surface area of the reflex or items of equipment are likely to within this requirement. reflector above the minimum required Porsche concluded that the subject height to meet the photometry 5 Cf. Gen. Motors Corporation; Ruling on Petition noncompliance is inconsequential as it requirements by more than double the for Determination of Inconsequential relates to motor vehicle safety and that minimum requirement. Thus, the size of Noncompliance, 69 FR 19897, 19899 (Apr. 14, its petition, to be exempted from 2004) (citing prior cases where noncompliance was the reflex reflector compensates for its expected to be imperceptible, or nearly so, to providing notification of the mounting height and achieves the safety vehicle occupants or approaching drivers). noncompliance, as required by 49 need to aid in visibility. 6 See Gen. Motors, LLC; Grant of Petition for U.S.C. 30118, and a remedy for the Porsche additionally cited a prior Decision of Inconsequential Noncompliance, 78 FR noncompliance, as required by 49 NHTSA ruling for a similar 35355 (June 12, 2013) (finding noncompliance had no effect on occupant safety because it had no effect U.S.C. 30120, should be granted. noncompliance granting on the proper operation of the occupant In response to a request from NHTSA inconsequentiality to Harley-Davidson classification system and the correct deployment of for clarification, Porsche specified the Motor Company, Inc. for a reflex an air bag); Osram Sylvania Prods. Inc.; Grant of dimensions of the noncompliant reflex reflector mounted at an average of 0.3″ Petition for Decision of Inconsequential reflector as being 110.119 mm by ″ ″ Noncompliance, 78 FR 46000 (July 30, 2013) to 0.7 below the required 15 (finding occupant using noncompliant light source 4 35.375mm (4.34 by 1.39 inches). height. See 79 FR 69558, November 21, would not be exposed to significantly greater risk Porsche also clarified that the 0.2-inch 2014. The aforementioned petition than occupant using similar compliant light deviation from the minimum required concerned a similar noncompliance for source). mounting height is relative to the a reflex reflector that was mounted 0.3″ 7 Morgan 3 Wheeler Limited; Denial of Petition for ‘‘center of the item’’ (centroid of the to 0.7″ below the minimum mounting Decision of Inconsequential Noncompliance, 81 FR ″ 21663, 21666 (Apr. 12, 2016). functional reflective area). Porsche also height vs 0.2 . NHTSA believes Porsche 8 United States v. Gen. Motors Corp., 565 F.2d provided a PowerPoint presentation that has provided compelling information 754, 759 (D.C. Cir. 1977) (finding defect poses an included detailed test data which supporting the grant of its petition. unreasonable risk when it ‘‘results in hazards as showed the results of several Specifically, we found Porsche’s potentially dangerous as sudden engine fire, and where there is no dispute that at least some such photometric analyses performed on the analysis by masking a portion of the hazards, in this case fires, can definitely be subject reflex reflectors which included reflex reflector to demonstrate the expected to occur in the future’’). partially masking the reflex reflector to performance of the remaining unmasked 9 See Mercedes-Benz, U.S.A., L.L.C.; Denial of artificially shift the centroid thereby portion of the reflex reflector that met Application for Decision of Inconsequential the mounting height requirement Noncompliance, 66 FR 38342 (July 23, 2001) raising the mounting height. (rejecting argument that noncompliance was especially compelling. VI. NHTSA’s Analysis inconsequential because of the small number of We note that the noncompliance at vehicles affected); Aston Martin Lagonda Ltd.; The primary function of a reflex issue concerns a failure to meet a Denial of Petition for Decision of Inconsequential reflector is to reduce crashes by performance requirement. The burden Noncompliance, 81 FR 41370 (June 24, 2016) (noting that situations involving individuals permitting early detection of a motor of establishing the inconsequentiality of trapped in motor vehicles—while infrequent—are vehicle that is approaching an a failure to comply with a performance consequential to safety); Morgan 3 Wheeler Ltd.; intersection or parked by the side of the requirement in a standard—as opposed Denial of Petition for Decision of Inconsequential road. While NHTSA recognizes the to a labeling requirement—is more Noncompliance, 81 FR 21663, 21664 (Apr. 12, 2016) (rejecting argument that petition should be importance of this function to safety, substantial and difficult to meet. granted because the vehicle was produced in very low numbers and likely to be operated on a limited 3 See 82 FR 24204, , 2017. 4 See 79 FR 69558, November 21, 2014. basis).

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actually exhibit a noncompliance. The DEPARTMENT OF THE TREASURY information in your comment or percentage of potential occupants that supporting materials that you consider could be adversely affected by a Office of the Comptroller of the confidential or inappropriate for public noncompliance does not determine the Currency disclosure. question of inconsequentiality. Rather, You may review comments and other Agency Information Collection the issue to consider is the consequence related materials that pertain to this Activities: Information Collection information collection beginning on the to an occupant who is exposed to the Renewal; Comment Request; Record consequence of that noncompliance.10 date of publication of the second notice and Disclosure Requirements— for this collection 1 by the following These considerations are also relevant Consumer Financial Protection Bureau when considering whether a defect is method: Regulations B, E, M, Z, and DD and • Viewing Comments Electronically: inconsequential to motor vehicle safety. Board of Governors of the Federal Go to www.reginfo.gov. Click on the VII. NHTSA’s Decision Reserve System Regulation CC ‘‘Information Collection Review’’ tab. AGENCY: Office of the Comptroller of the Underneath the ‘‘Currently under In consideration of the foregoing, Currency (OCC), Treasury. Review’’ section heading, from the drop- NHTSA finds that Porsche has met its down menu select ‘‘Department of ACTION: Notice and request for comment. burden of persuasion that the FMVSS Treasury’’ and then click ‘‘submit.’’ This No. 108 noncompliance is SUMMARY: The OCC, as part of its information collection can be located by inconsequential as it relates to motor continuing effort to reduce paperwork searching by OMB control number vehicle safety. Accordingly, Porsche’s and respondent burden, invites the ‘‘1557–0176’’ or ‘‘Record and Disclosure petition is hereby granted and Porsche general public and other Federal Requirements—Consumer Financial is exempted from the obligation to agencies to comment on the renewal of Protection Bureau Regulations B, E, M, provide notification of and remedy for an information collection, as required Z, and DD and Board of Governors of the subject noncompliance in the by the Paperwork Reduction Act of the Federal Reserve System Regulation affected vehicles under 49 U.S.C. 30118 1995. An agency may not conduct or CC.’’ Upon finding the appropriate and 30120. sponsor, and a respondent is not information collection, click on the required to respond to, an information related ‘‘ICR Reference Number.’’ On the NHTSA notes that the statutory next screen, select ‘‘View Supporting provisions (49 U.S.C. 30118(d) and collection unless it displays a currently valid Office of Management and Budget Statement and Other Documents’’ and 30120(h)) that permit manufacturers to (OMB) control number. The OCC is then click on the link to any comment file petitions for a determination of soliciting comment concerning the listed at the bottom of the screen. inconsequentiality allow NHTSA to • renewal of an information collection For assistance in navigating exempt manufacturers only from the titled, ‘‘Record and Disclosure www.reginfo.gov, please contact the duties found in sections 30118 and Requirements—Consumer Financial Regulatory Information Service Center 30120, respectively, to notify owners, Protection Bureau Regulations B, E, M, at (202) 482–7340. purchasers, and dealers of a defect or Z, and DD and Board of Governors of FOR FURTHER INFORMATION CONTACT: noncompliance and to remedy the the Federal Reserve System Regulation Shaquita Merritt, OCC Clearance Officer defect or noncompliance. Therefore, the CC.’’ (202) 649–5490, Chief Counsel’s Office, granting of this petition only applies to DATES: Comments must be submitted on Office of the Comptroller of the the subject vehicles that Porsche no or before December 1, 2020. Currency, 400 7th Street SW, longer controlled at the time it Washington, DC 20219. ADDRESSES: Commenters are encouraged determined that the noncompliance to submit comments by email, if SUPPLEMENTARY INFORMATION: existed. However, this decision does not possible. You may submit comments by Title: Record and Disclosure relieve vehicle distributors and dealers any of the following methods: Requirements—Consumer Financial of the prohibitions on the sale, offer for • Email: [email protected]. Protection Bureau Regulations B, E, M, sale, or introduction or delivery for • Mail: Chief Counsel’s Office, Z, and DD and Board of Governors of introduction into interstate commerce of Attention: Comment Processing, Office the Federal Reserve System Regulation the noncompliant vehicles under their of the Comptroller of the Currency, CC. control after Porsche notified them that Attention: 1557–0176, 400 7th Street OMB Control No.: 1557–0176. Type of Review: Regular review. the subject noncompliance existed. SW, Suite 3E–218, Washington, DC Description: This information 20219. Authority: 49 U.S.C. 30118, 30120: collection covers Consumer Financial • Hand Delivery/Courier: 400 7th delegations of authority at 49 CFR 1.95 and Protection Board Regulations B, E, M, Z, Street SW, Suite 3E–218, Washington, 501.8. and DD and Board of Governors of the DC 20219. Federal Reserve System (FRB) Otto G. Matheke III, • Fax: (571) 465–4326. Instructions: You must include Regulation CC. The CFPB and FRB Director, Office of Vehicle Safety Compliance. Regulations include the following [FR Doc. 2020–21835 Filed 10–1–20; 8:45 am] ‘‘OCC’’ as the agency name and ‘‘1557– 0176’’ in your comment. In general, the provisions: BILLING CODE 4910–59–P OCC will publish comments on Regulation B—12 CFR 1002—Equal www.reginfo.gov without change, Credit Opportunity Act including any business or personal This regulation prohibits lenders from information provided, such as name and discriminating against credit applicants address information, email addresses, or 10 on certain prohibited bases. The See Gen. Motors Corp.; Ruling on Petition for phone numbers. Comments received, Determination of Inconsequential Noncompliance, regulation also requires creditors to 69 FR 19897, 19900 (Apr. 14, 2004); Cosco Inc.; including attachments and other Denial of Application for Decision of supporting materials, are part of the 1 Following the close of this notice’s 60-day Inconsequential Noncompliance, 64 FR 29408, public record and subject to public comment period, the OCC will publish a second 29409 (June 1, 1999). disclosure. Do not include any notice with a 30-day comment period.

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notify applicants of action taken on Regulation CC—12 CFR 229— STATUS: This meeting will be open to the their credit application, to report credit Availability of Funds and Collection of public. history in the names of both spouses on Checks MATTERS TO BE CONSIDERED: The Unified an account, to retain records of credit This regulation includes timeframes Carrier Registration Plan Board of applications, to collect information to govern the availability of funds Directors (the ‘‘Board’’) will continue its about the applicant’s race and other deposited in checking accounts, rules to work in developing and implementing personal characteristics in applications govern the collection and return of the Unified Carrier Registration Plan for certain dwelling-related loans, and checks and electronic checks, and and Agreement. The subject matter of to provide applicants with copies of general provisions to govern the use of the meeting will include: appraisal reports used in connection substitute checks. Agenda with credit transactions. Affected Public: Businesses or other Regulation E—12 CFR 1005—Electronic for-profit. I. Welcome and Call to Order—UCR Fund Transfers 2 Burden Estimates: Board Chair Estimated Number of Respondents: This regulation carries out the The UCR Board Chair will welcome 1,110. purposes of the Electronic Fund attendees, call the meeting to order, call Estimated Annual Burden: 2,937,280 roll for the Board, confirm the presence Transfer Act (15 U.S.C. 1693 et seq.), hours. which establishes the basic rights, of a quorum, and facilitate self- Frequency of Response: On occasion. introductions. liabilities, and responsibilities of Comments: Comments submitted in consumers who use electronic fund response to this notice will be II. Verification of Meeting Notice—UCR transfers and remittance transfer summarized and included in the request Executive Director services and the financial institutions or for OMB approval. All comments will The UCR Executive Director will other persons that offer these services. become a matter of public record. verify publication of the meeting notice Regulation M—12 CFR 1013— Comments are invited on: on the UCR website and distribution to Consumer Leasing (a) Whether the collection of the UCR contact list via email followed information is necessary for the proper This regulation implements the by subsequent publication of the notice performance of the functions of the consumer leasing provisions of the in the Federal Register. OCC, including whether the information Truth in Lending Act, including by has practical utility; III. Review and Approval of Board requiring meaningful disclosure of (b) The accuracy of the OCC’s Agenda—UCR Board Chair leasing terms. estimate of the information collection For discussion and possible action Regulation Z—12 CFR 1026—Truth in burden; Agenda will be reviewed and the Lending (c) Ways to enhance the quality, Board will consider adoption. utility, and clarity of the information to Ground Rules This regulation is intended to ➢ promote the informed use of consumer be collected; Board actions taken only in credit by requiring disclosures about its (d) Ways to minimize the burden of designated areas on agenda the collection on respondents, including terms and cost, to ensure that IV. Approval of Minutes of the August through the use of automated collection consumers are provided with greater 13, 2020 UCR Board Meeting—UCR techniques or other forms of information and more timely information on the Board Chair technology; and nature and costs of the residential real For discussion and possible action estate settlement process, and to effect (e) Estimates of capital or start-up certain changes in the settlement costs and costs of operation, Minutes of the August 13, 2020 UCR process for residential real estate that maintenance, and purchase of services Board meeting will be reviewed. The will result in more effective advance to provide information. Board will consider action to approve. disclosure to home buyers and sellers of Theodore J. Dowd, V. States Appearing Before the Board settlement costs. The regulation gives Deputy Chief Counsel, Office of the Today Due to Non-Compliance With consumers the right to cancel certain Comptroller of the Currency. UCR Audit Requirements for 2019— credit transactions that involve a lien on [FR Doc. 2020–21855 Filed 10–1–20; 8:45 am] UCR Executive Director a consumer’s principal dwelling, BILLING CODE 4810–33–P Certain participating states have been regulates certain credit card practices, advised of their non-compliance for and provides a means for fair and timely 2019 with the audit requirements resolution of credit billing disputes. UNIFIED CARRIER REGISTRATION contained in Section 19 of the UCR Other provisions include rules specific PLAN Agreement. This section sets minimum to credit card accounts, certain performance standards for completing dwelling-secured transactions, home- Sunshine Act Meeting; Unified Carrier Focused Anomaly Reviews (FARs) and equity plans, and private education Registration Plan Board of Directors conducting audit retreats for UCR Tiers loans. Meeting 5 and 6. States not in compliance with Regulation DD—12 CFR 1030—Truth in these requirements have been requested Savings TIME AND DATE: October 8, 2020, from to appear before the UCR Board of Noon to 3:00 p.m., Eastern time. This regulation requires depository Directors to address the following: PLACE: This meeting will be accessible institutions to provide disclosures to 1. The reason(s) for the state’s non- via conference call and screen sharing. enable consumers to make meaningful compliance for 2019 Any interested person may call 877– comparisons among accounts at 2. Action(s) the state intends to take to 853–5247 (US toll free), 888–788–0099 depository institutions. achieve compliance and avoid non- (US toll free), +1 929–205–6099 (US compliance going forward toll), or +1 669–900–6833 (US toll), 2 This notice does not apply to the Prepaid 3. Suggestions regarding how UCR can Account Provisions of Regulation E, which are Conference ID 994 1238 0722, to help states avoid non-compliance in approved under OMB Control No. 1557–0346. participate in the meeting. the future

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VI. Report of FMCSA—FMCSA MCS–150 audits to have been assigned. Summary Report and lead a discussion Representative All assignments must be completed by regarding its purpose and usefulness. December 31, 2020. The Federal Motor Carrier Safety B. Discuss the Proposed Schedule for Administration (FMCSA) will provide a B. Update on the 2020 New Entrant and Distributions from the Depository for the report on any relevant activity. Unregistered Motor Carrier Solicitation 2021 Registration Year—UCR VII. Discussion and Possible Approval Campaigns—Seikosoft Depository Manager of 2021 UCR Meetings (Board and Seikosoft will provide an updated The UCR Depository Manager will Subcommittee)—UCR Executive report on new entrant motor carrier discuss the proposed schedule for the Director campaigns managed by the National Depository to make distributions to For discussion and possible action Registration System (NRS), new entrant states that have not yet achieved their The UCR Executive Director will motor carrier campaigns managed by the revenue entitlements during 2021. discuss a proposed meeting schedule for states, unregistered motor carrier C. Certificates of Deposit—UCR 2021. The Board may take action to campaigns managed by the NRS, and Depository Manager adopt a 2021 meeting schedule for the unregistered motor carrier campaigns Board and its Subcommittees. managed by the states. For discussion and possible action The UCR Depository Manager will VIII. Discussion and Possible Approval C. Update on the Non-Universe Motor provide a review of the 2019 Savings of an Additional December 2020 Carrier Solicitation Campaigns— Account held at the Bank of North Education and Training Subcommittee Seikosoft Dakota and discuss the benefits of Meeting—UCR Executive Director Seikosoft will provide an updated investing those funds in short-term For discussion and possible action report on the solicitation campaign certificates of deposit, not to exceed six The UCR Executive Director will targeting motor carriers identified months in duration. The Board may take discuss adding another Education and through roadside inspections as action to adopt the recommended CD Training Subcommittee Meeting in operating in interstate commerce but investment proposal. December of 2020. The Board may take identified in MCMIS as either intrastate D. Review 2020 Administrative action to adopt an additional meeting in or inactive. December 2020 for the Education and Expenses Through September 30, Training Subcommittee. D. Unregistered Carrier List Potentially 2020—UCR Depository Manager Containing Private Passenger and IX. Discussion and Possible Approval of The UCR Depository Manager will Intrastate Motor Carriers—Seikosoft/ present the administrative costs Updates and Clean-up of the UCR UCR Audit Subcommittee Chair Handbook—UCR Executive Director incurred for the period of January 1, 2020 through September 30, 2020, For discussion and possible action Seikosoft will provide an update on the potential for the Unregistered List to compared to the budget for the same The UCR Executive Director will contain private passenger and intrastate time-period, and discuss all significant discuss various proposed updates and motor carriers that changed carrier variances. clean-up to the UCR Handbook. The status to interstate during 2020. Board may take action to update and E. Status of 2019 Registration Year Fee clean-up the UCR Handbook. E. Unregistered Brokers—UCR Audit Collections and Compliance Percentages—UCR Depository Manager X. Updates Concerning UCR Subcommittee Chair Legislation—UCR Board Chair The UCR Depository Manager will The UCR Audit Subcommittee Chair provide a ‘‘pre-final’’ review on the The UCR Board Chair will call for any will discuss the challenges that results of collections and registration updates regarding UCR legislation since unregistered brokers present to UCR compliance rates for the 2019 the last Board meeting. enforcement. The discussion will registration year. XI. Chief Legal Officer Report—UCR highlight jurisdiction and other Education and Training Chief Legal Officer challenges, and may also include dialogue regarding successes and ideas Subcommittee—UCR Education and The UCR Chief Legal Officer will for addressing broker registration Training Subcommittee Chair provide an update on the status of the enforcement. March 2019 data event, the Twelve A. Update on Basic Audit Training Percent Logistics litigation, several F. Update on the Audit of the Module and Flow Chart/Decision Tree— cease and desist letters sent to third Depository—UCR Depository Manager UCR Education and Training Subcommittee Chair party permitting agents, and other The UCR Depository Manager will matters. provide an update on the progress The UCR Education and Training XII. Subcommittee Reports achieved on the 2019 Depository audit Subcommittee Chair will provide an and plans for addressing open items update on the development of the Basic Audit Subcommittee—UCR Audit through completion. Audit training module and Flow Chart/ Subcommittee Chair Decision Tree. Finance Subcommittee—UCR Finance A. Requirement to Complete 2019 Subcommittee Chair B. Discuss the Approval of Funding for Audits by December 31, 2020—UCR the Basic Audit Training Module and Audit Subcommittee Chair A. Review UCR Bank Balance Summary Flow Chart/Decision Tree—UCR Report—UCR Finance Subcommittee Education and Training Subcommittee The UCR Audit Subcommittee Chair Chair/UCR Depository Manager will remind state auditors to monitor Chair FARs and the MCS–150 audit list for The UCR Finance Subcommittee For discussion and possible action recently assigned audits. September 30, Chair and the UCR Depository Manager The UCR Education and Training 2020 was the last day for new FARs and will review the new UCR Bank Balance Subcommittee Chair will provide

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information concerning the cost for the program, discuss motor carrier XV. Adjournment—UCR Board Chair Basic Audit training module and Flow inspection results, and other matters. The UCR Board Chair will adjourn the Chart/Decision Tree. The Board may • Seikosoft meeting. take action to approve the cost of the Basic Audit Training Module and Flow Seikosoft will provide an update on This agenda will be available no later Chart/Decision Tree. recent/new activity related to the NRS. than 5:00 p.m. Eastern time, September 30, 2020 at: https://plan.ucr.gov. XIII. Contractor Reports—UCR • UCR Administrator Report (Kellen)— CONTACT PERSON FOR MORE INFORMATION: Executive Director UCR Operations and Depository Managers Elizabeth Leaman, Chair, Unified • UCR Executive Director Carrier Registration Plan Board of The UCR Administrator will provide Directors, (617) 305–3783, eleaman@ The UCR Executive Director will its management report covering recent board.ucr.gov. provide a report covering recent activity activity for the Depository, Operations, for the UCR Plan. and Communications. Alex B. Leath, • Chief Legal Officer, Unified Carrier DSL Transportation Services, Inc. XIV. Other Business—UCR Board Chair Registration Plan. DSL Transportation Services, Inc. will The UCR Board Chair will call for any [FR Doc. 2020–21984 Filed 9–30–20; 4:15 pm] report on the latest data from the FARs business, old or new, from the floor. BILLING CODE 4910–YL–P

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Part II

Small Business Administration

13 CFR Part 121 Small Business Size Standards: Transportation and Warehousing; Information; Finance and Insurance; Real Estate and Rental and Leasing; Proposed Rule

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SMALL BUSINESS ADMINISTRATION SBA will post all comments to this review of all size standards—except proposed rule on www.regulations.gov. those for agricultural enterprises for 13 CFR Part 121 If you wish to submit confidential which size standards were previously RIN 3245–AG90 business information (CBI) as defined in set by Congress—and made appropriate the User Notice at www.regulations.gov, adjustments to size standards for a Small Business Size Standards: you must submit such information to number of industries to reflect current Transportation and Warehousing; U.S. Small Business Administration, industry and Federal market conditions. Khem R. Sharma, Ph.D., Chief, Office of Information; Finance and Insurance; During the previous 5-year Size Standards, 409 Third Street SW, Real Estate and Rental and Leasing comprehensive review of size standards Mail Code 6530, Washington, DC 20416, AGENCY: U.S. Small Business or send an email to sizestandards@ under the Jobs Act, SBA reviewed the Administration. sba.gov. Highlight the information that receipts-based size standards for forty- ACTION: Proposed rule. you consider to be CBI and explain why two (42) industries and one (1) you believe SBA should hold this exception within NAICS Sector 48–49, SUMMARY: The U.S. Small Business information as confidential. SBA will twenty (20) industries within Sector 51, Administration (SBA) proposes to review your information and determine thirty-nine (39) industries in Sector 52, increase its receipts-based small whether it will make the information and twenty-four (24) industries and one business size definitions (commonly public. (1) exception in Sector 53. These referred to as ‘‘size standards’’) for reviews of receipts-based size standards FOR FURTHER INFORMATION CONTACT: North American Industry Classification occurred during October 2010 to Jorge Laboy-Bruno, Ph.D., Economist, System (NAICS) sectors related to December 2013. SBA’s analysis of the Office of Size Standards, (202) 205–6618 Transportation and Warehousing, then-available relevant industry and or [email protected]. Information, Finance and Insurance, Federal contracting data supported and Real Estate and Rental and Leasing. SUPPLEMENTARY INFORMATION: To lowering size standards for twenty-four SBA proposes to increase size standards determine eligibility for Federal small (24) industries and one (1) exception in for 45 industries in those sectors, business assistance, SBA establishes these sectors. However, taking into small business size definitions (usually including eighteen (18) industries in consideration economic conditions at referred to as ‘‘size standards’’) for NAICS Sector 48–49 (Transportation the time, SBA decided to either retain private sector industries in the United and Warehousing), eight (8) industries these size standards at existing levels or States. SBA uses two primary measures in NAICS Sector 51 (Information), ten bring them up to the relevant common of business size for size standards (10) industries in NAICS Sector 52 size standard. In the final rules, SBA purposes: Average annual receipts and (Finance and Insurance), and nine (9) increased size standards for ninety-three industries in NAICS Sector 53 (Real average number of employees. SBA uses financial assets for certain financial (93) of those industries and one (1) Estate and Rental and Leasing). SBA’s exception, including twenty-two (22) proposed revisions relied on its recently industries in Sector 52 and refining capacity, in addition to employees, for industries in NAICS Sector 48–49 (77 revised ‘‘Size Standards Methodology’’ the petroleum refining industry in FR 10943, , 2012), fifteen (Methodology). SBA seeks comments on Sector 31–33 to measure business size. (15) industries in NAICS Sector 51 (77 its proposed changes to size standards In addition, SBA’s Small Business FR 72702, , 2012), thirty-six in the above sectors, and the data Investment Company (SBIC), Certified (36) industries in NAICS Sector 52 (78 sources it evaluated to develop the Development Company (CDC/504), and FR 37409, June 20, 2013), and twenty proposed size standards. 7(a) Loan Programs use either the (20) industries and one (1) exception in DATES: SBA must receive comments to industry-based size standards or the NAICS Sector 53 (77 FR 58747, this proposed rule on or before alternative size standards based on September 24, 2012). SBA changed the December 1, 2020. tangible net worth and net income to basis for measuring the size of one ADDRESSES: Identify your comments by determine eligibility for those programs. industry (NAICS code 522293, RIN 3245–AG90 and submit them by In September 2010, Congress passed International Trade Financing) from one of the following methods: (1) the Jobs Act (Pub. L. 111–240, 124 Stat. assets to annual receipts. SBA retained Federal eRulemaking Portal: 2504, September 27, 2010), (Jobs Act) the size standards for the remaining www.regulations.gov, following the requiring SBA to review all size thirty-two (32) industries in these instructions for submitting comments; standards every five years and make sectors. Table 1, Size Standards or (2) Mail/Hand Delivery/Courier: necessary adjustments to reflect current Revisions During the Prior Khem R. Sharma, Ph.D., Chief, Office of industry and market conditions. In Comprehensive Review, provides a Size Standards, 409 Third Street SW, accordance with the Jobs Act, in early summary of these revisions by NAICS Mail Code 6530, Washington, DC 20416. 2016 SBA completed the first 5-year sector.

TABLE 1—SIZE STANDARDS REVISIONS DURING THE PRIOR COMPREHENSIVE REVIEW

Number of Number of Number of Number of Number of type of size NAICS sector Sector name size standards size standards size standards size standards standards reviewed increased lowered maintained changed

48–49 ...... Transportation and Warehousing ...... 43 22 0 21 0 51 ...... Information ...... 20 15 0 5 0 52 ...... Finance and Insurance ...... 39 36 0 2 1 53 ...... Real Estate and Rental and Leasing ..... 25 21 0 4 0

All Sectors ...... 127 94 0 32 1

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Currently, there are twenty-seven (27) each industry averaging $20 million or evaluation of the Federal contracting different size standards levels covering more in average annual Federal contract factor is explained more fully elsewhere 1,023 NAICS industries and 14 dollars, the small business share in in this proposed rule. subindustry activities (commonly Federal contract dollars relative to the SBA does not apply all aspects of its known as ‘‘exceptions’’ in SBA’s table of small business share in total industry’s Methodology to all proposed rules size standards). Sixteen (16) of these receipts. When necessary, SBA also because not all features are relevant for size levels are based on average annual considers other secondary factors as every industry covered by each receipts, nine (9) are based on average they are relevant to the industries and proposed rule. For example, since all number of employees, and two (2) are the interests of small businesses, industries covered by this proposed rule based on other measures. including impacts of size standards have receipts-based size standards, the SBA also adjusts its monetary-based changes on small businesses. Methodology described in this proposed size standards for inflation at least once rule applies only to establishing, every five years. An interim final rule Size Standards Methodology reviewing, or modifying receipts-based on SBA’s latest inflation adjustment to SBA has recently revised its size standards. SBA’s entire size standards, effective August 19, Methodology for establishing, Methodology is available on its website 2019, was published in the Federal reviewing, or modifying size standards at www.sba.gov/size. Register on July 18, 2019 (84 FR 34261). when necessary. See the notification in This proposed rule includes SBA also updates its size standards, also the April 11, 2019 issue of the Federal information regarding the factors SBA every five years, to adopt the Office of Register (84 FR 14587). The revised evaluated and the criteria it used to Management and Budget’s (OMB) methodology is available on SBA’s size propose adjustments to size standards quinquennial NAICS revisions to its standards web page at www.sba.gov/ for industries reviewed herein. This table of small business size standards. size. Prior to finalizing the revised proposed rule also affords the public an Effective October 1, 2017, SBA adopted Methodology, SBA issued a notification opportunity to review and to comment OMB’s 2017 NAICS revisions for its size in the April 27, 2018 issue of the on SBA’s proposed revisions to size standards (82 FR 44886, September 27, Federal Register (83 FR 18468) to solicit standards for industries covered by the 2017). comments from the public and notify rule. This proposed rule is one of a series stakeholders of the proposed changes to Industry Analysis of proposed rules that will review size the Methodology. SBA considered all standards of industries grouped by public comments in finalizing the Congress granted SBA’s Administrator various NAICS sectors. Rather than revised Methodology. For a summary of discretion to establish detailed small review all size standards at one time, comments and SBA’s responses, refer to business size standards (15 U.S.C. SBA is reviewing size standards by the SBA’s April 11, 2019 Federal 632(a)(2)). Specifically, Section 3(a)(3) generally grouping industries within Register notification. of the Small Business Act (15 U.S.C. various NAICS sectors that use the same The revised Methodology represents a 632(a)(3)) requires that ‘‘. . . the [SBA] size measure (i.e., employees or major change from the previous Administrator shall ensure that the size monetary). In the current review, SBA methodology, which was issued on standard varies from industry to will review size standards in six (6) October 21, 2009 (74 FR 53940). industry to the extent necessary to groups of NAICS sectors. (In the prior Specifically, in its revised Methodology reflect the differing characteristics of the review, SBA reviewed size standards SBA is replacing the ‘‘anchor’’ approach various industries and consider other mostly on a sector by sector basis.) Once applied in the previous methodology factors deemed to be relevant by the SBA completes its review of size with a ‘‘percentile’’ approach for Administrator.’’ Accordingly, the standards for a group of sectors, it issues evaluating differences in characteristics economic structure of an industry is the for public comments a proposed rule to among various industries. Under the underlying basis for establishing, revise size standards for those industries ‘‘anchor’’ approach, SBA generally reviewing, or modifying small business based on the latest available data and evaluated the characteristics of size standards. In addition, SBA other factors deemed relevant by the individual industries relative to the considers current economic conditions, SBA’s Administrator. average characteristics of industries its mission and program objectives, the Below is a discussion of SBA’s with the anchor size standard to Administration’s current policies, revised ‘‘Size Standards Methodology’’ determine whether they should have a impacts on small businesses under (Methodology), available at higher or a lower size standard than the current and proposed or revised size www.sba.gov/size, for establishing, anchor. In the ‘‘percentile’’ approach, standards, suggestions from industry reviewing, or modifying receipts-based SBA ranks each industry among all groups and Federal agencies, and public size standards that SBA has applied to industries with the same measure of size comments on the proposed rule. SBA this proposed rule. SBA examines the standards (such as receipts or also examines whether a size standard structural characteristics of an industry employees) in terms of four primary based on industry and other relevant as a basis to assess industry differences industry factors, discussed in the data successfully excludes businesses and the overall degree of Industry Analysis subsection below. that are dominant in the industry. competitiveness of an industry and of The ‘‘percentile’’ approach is explained The goal of SBA’s size standards firms within the industry. Industry more fully elsewhere in this proposed review is to determine whether its structure is typically examined by rule. Additionally, as the fifth factor, existing small business size standards analyzing four primary factors—average SBA evaluates the difference between reflect the current industry structure firm size, degree of competition within the small business share in Federal and Federal market conditions and an industry, start-up costs and entry contract dollars and the small business revise them, when the latest available barriers, and distribution of firms by share in total industry’s receipts to data suggest that revisions are size. To assess the ability of small compute the size standard for the warranted. In the past, SBA compared businesses to compete for Federal Federal contracting factor. The overall the characteristics of each industry with contracting opportunities under the size standard for an industry is then the average characteristics of a group of current size standards, as the fifth obtained by averaging all size standards industries associated with the ‘‘anchor’’ primary factor, SBA also examines, for supported by each primary factor. The size standard. For example, in the

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recently completed first 5-year Methodology, available at www.sba.gov/ generally support a size standard higher comprehensive review of size standards size. than the size standards for other under the Jobs Act, $7 million (now $8.0 The primary factors that SBA industries. Conversely, if the industry’s million due to the inflation adjustment evaluates to examine industry structure average firm size is lower than that of in 2019; see 84 FR 34261 (July 18, include average firm size, startup costs most other industries, it would provide 2019)) was considered the ‘‘anchor’’ for and entry barriers, industry a basis to assign a lower size standard receipts-based size standards and 500 competition, and distribution of firms as compared to size standards for most employees was the ‘‘anchor’’ for by size. SBA also evaluates, as an other industries. employee-based size standards. If the additional primary factor, small 2. Startup costs and entry barriers. characteristics of a specific industry business success in receiving Federal Startup costs reflect a firm’s initial size under review were similar to the contracting assistance under the current in an industry. New entrants to an average characteristics of industries in size standards. Specifically, for the industry must have sufficient capital the anchor group, SBA generally Federal contracting factor, SBA and other assets to start and maintain a examines the small business share of viable business. If firms entering an adopted the anchor size standard for Federal contract dollars relative to small industry under review have greater that industry. If the specific industry’s business share of total receipts within capital requirements than firms do in characteristics were significantly an industry. These are, generally, the most other industries, all other factors different from those in the anchor five most important factors SBA remaining the same, this would be a group, SBA assigned a size standard that examines when establishing, reviewing, basis for a higher size standard. was higher or lower than the anchor. To or revising a size standard for an Conversely, if the industry has smaller determine a size standard above or industry. However, SBA will also capital needs compared to most other below the anchor size standard, SBA consider and evaluate other secondary industries, a lower size standard would evaluated the characteristics of a second factors that it believes are relevant to a be considered appropriate. comparison group of industries with particular industry (such as Given the lack of actual data on higher size standards. For industries technological changes, growth trends, startup costs and entry barriers by with receipts-based standards, the SBA financial assistance, other program industry, SBA uses average assets as a second comparison group consisted of factors, etc.). SBA also considers proxy of startup costs and entry barriers. industries with size standards between possible impacts of size standard To calculate average assets, SBA begins $23 million and $35.5 million, with the revisions on eligibility for Federal small with the sales to total assets ratio for an weighted average size standard for the business assistance, current economic industry from the Risk Management group equaling $29 million. For conditions, the Administration’s Association’s Annual Statement manufacturing industries and other policies, and suggestions from industry Studies, available at https://rmau.org/. industries with employee-based size groups and Federal agencies. Public SBA then applies these ratios to the standards (except for Wholesale Trade comments on proposed rules also average receipts of firms in that industry and Retail Trade), the second provide important additional obtained from the Economic Census comparison group included industries information. SBA thoroughly reviews all tabulation. An industry with average with a size standard of 1,000 employees public comments before making a final assets that are significantly higher than or 1,500 employees, with the weighted decision on its proposed revisions to most other industries is likely to have average size standard of 1,323 size standards. Below are brief higher startup costs; this in turn will employees. Using the anchor size descriptions of each of the five primary support a higher size standard. standard and average size standard for factors that SBA has evaluated for each Conversely, an industry with average the second comparison group, SBA industry being reviewed in this assets that are similar to or lower than computed a size standard for an proposed rule. A more detailed most other industries is likely to have industry’s characteristic (factor) based description of this analysis is provided lower startup costs; this will support on the industry’s position for that factor in the SBA’s Methodology, available at either lowering or maintaining the size relative to the average values of the www.sba.gov/size. standard. same factor for industries in the anchor 1. Average firm size. SBA computes 3. Industry competition. Industry and second comparison groups. two measures of average firm size: competition is generally measured by Simple average and weighted average. the share of total industry receipts Under the ‘‘percentile’’ approach, for For industries with receipts-based size generated by the largest firms in an each industry factor, an industry is standards, the simple average is the total industry. SBA generally evaluates the ranked and compared with the 20th receipts of the industry divided by the share of industry receipts generated by percentile and 80th percentile values of total number of firms in the industry. the four largest firms in each industry. that factor among the industries sharing The weighted average firm size is the This is referred to as the ‘‘4-firm the same measure of size standards (i.e., summation of all the receipts of the concentration ratio,’’ a commonly used receipts or employees). Combining that firms in an industry multiplied by their economic measure of market result with the 20th percentile and 80th share of receipts in the industry. The competition. Using the 4-firm percentile values of size standards simple average weighs all firms within concentration ratio, SBA compares the among the industries with the same an industry equally regardless of their degree of concentration within an measure of size standards, SBA size. The weighted average overcomes industry to the degree of concentration computes a size standard supported by that limitation by giving more weight to of the other industries with the same each industry factor for each industry. larger firms. The size standard measure of size standards. If a In the previous Methodology, supported by average firm size is significantly higher share of economic comparison industry groups were obtained by averaging size standards activity within an industry is predetermined independent of the data, supported by simple average firm size concentrated among the four largest while in the revised Methodology they and weighted average firm size. firms compared to most other are established using the actual data. A If the average firm size of an industry industries, all else being equal, SBA more detailed description of the is higher than the average firm size for would set a size standard that is percentile method is provided in SBA’s most other industries, this would relatively higher than for most other

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industries. Conversely, if the market opportunities. The Small Business Act Industry Group (4-digit level), Subsector share of the four largest firms in an requires the Federal government to (3-digit level), and Sector (2-digit level). industry is appreciably lower than the ensure that small businesses receive a These data are arrayed by various similar share for most other industries, ‘‘fair share’’ of Federal contracts. The classes of firms’ size based on the the industry will be assigned a size legislative history also discusses the overall number of employees and standard that is lower than those for importance of size standards in Federal receipts of the entire enterprise (all most other industries. contracting. To incorporate the Federal establishments and affiliated firms) from 4. Distribution of firms by size. SBA contracting factor in the size standards all industries. The special tabulation examines the shares of industry total analysis, SBA evaluates small business also contains information for different receipts accounted for by firms of participation in Federal contracting in levels of NAICS categories on average different receipts and employment sizes terms of the share of total Federal and median firm size in terms of both in an industry. This is an additional contract dollars awarded to small receipts and employment, total receipts factor SBA considers in assessing businesses relative to the small business generated by the four and eight largest competition within an industry besides share of industry’s total receipts. In firms, the Herfindahl-Hirschman Index the 4-firm concentration ratio. If the general, if the share of Federal contract (HHI), the Gini coefficient, and size preponderance of an industry’s dollars awarded to small businesses in distributions of firms by various receipts economic activity is attributable to an industry is significantly smaller than and employment size groupings. smaller firms, this generally indicates the small business share of total In some cases, where data were not that small businesses are competitive in industry’s receipts, all else remaining available due to disclosure prohibitions that industry and would support the same, a justification would exist for in the Census Bureau’s tabulation, SBA adopting a smaller size standard. A considering a size standard higher than either estimated missing values using higher size standard would be the current size standard. In cases where available relevant data or examined data supported for an industry in which the small business share of the Federal at a higher level of industry aggregation, distribution of firms indicates that most market is already appreciably high such as at the NAICS 2-digit (Sector), 3- of the economic activity is concentrated relative to the small business share of digit (Subsector), or 4-digit (Industry among the larger firms. the overall market, SBA generally Group) level. In some instances, SBA’s Concentration is a measure of assumes that the existing size standard analysis was based only on those factors inequality of distribution. To determine is adequate with respect to the Federal for which data were available or the degree of inequality of distribution contracting factor. estimates of missing values were in an industry, SBA computes the Gini The disparity between the small possible. coefficient, using the Lorenz curve. The business Federal market share and Lorenz curve presents the cumulative industry-wide small business share may To evaluate some industries that are percentages of units (firms) along the be due to various factors, such as not covered by the Economic Census, horizontal axis and the cumulative extensive administrative and SBA used a similar special tabulation of percentages of receipts (or other compliance requirements associated the latest County Business Patterns measures of size) along the vertical axis. with Federal contracts, the different (CBP) published by the U.S. Census (For further detail, see SBA’s skill set required to perform Federal Bureau (www.census.gov/programs- Methodology on its website at contracts as compared to typical surveys/cbp.html). Similarly, to evaluate www.sba.gov/size.) Gini coefficient commercial contracting work, and the industries in NAICS Sector 11 that are values vary from zero to one. If receipts size of Federal contracts. These, as well also not covered by the Economic are distributed equally among all the as other factors, are likely to influence Census and CBP, SBA evaluated a firms in an industry, the value of the the type of firms within an industry that similar special tabulation based on the Gini coefficient will equal zero. If an compete for Federal contracts. By 2012 Census of Agriculture industry’s total receipts are attributed to comparing the small business Federal (www.nass.usda.gov) from the National a single firm, the Gini coefficient will contracting share with the industry- Agricultural Statistics Service (NASS). equal one. wide small business share, SBA Besides the Economic Census, SBA compares the degree of includes in its size standards analysis Agricultural Census and CBP inequality of distribution for an industry the latest Federal market conditions. tabulations, SBA also evaluates relevant under review with other industries with Besides the impact on Federal industry data from other sources, when the same type of size standards. If an contracting, SBA also examines impacts necessary, especially for industries that industry shows a higher degree of on SBA’s loan programs both under the are not covered by the Economic Census inequality of distribution (hence a current and revised size standards. or CBP. These include the Quarterly higher Gini coefficient value) compared Census of Employment and Wages to most other industries in the group Sources of Industry and Program Data (QCEW, also known as ES–202 data) this would, all else being equal, warrant SBA’s primary source of industry data (www.bls.gov/cew/) and Business a size standard that is higher than the used in this proposed rule is a special Employment Dynamics (BED) data size standards assigned to most other tabulation of the Economic Census from (www.bls.gov/bdm/) from the U.S. industries. Conversely, an industry with the U.S. Census Bureau Bureau of Labor Statistics. Similarly, to lower degree of inequality (i.e., a lower (www.census.gov/econ/census). The evaluate certain financial industries that Gini coefficient value) than most others tabulation based on the 2012 Economic have assets-based size standards SBA will be assigned a lower size standard Census is the latest available, which examines the data from the Statistics on relative to others. SBA used for evaluating industry Depository Institutions (SDI) database 5. Federal contracting. As the fifth characteristics and developing size (www5.fdic.gov/sdi/main.asp) of the factor, SBA examines the success small standards in this proposed rule. The Federal Deposit Insurance Corporation businesses are having in winning special tabulation provides industry (FDIC) data. Finally, to evaluate the Federal contracts under the current size data on the number of firms, number of capacity component of the Petroleum standard as well as the possible impact establishments, number of employees, Refiners (NAICS 324110) size standard, a size standard change may have on annual payroll, and annual receipts of SBA evaluates the petroleum Federal small business contracting companies by Industry (6-digit level), production data from the Energy

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Information Administration in the revised Methodology, SBA has each industry in terms of four economic (www.eia.gov). relaxed the limitation on the number of characteristics or factors, namely To calculate average assets, SBA used small business size standards. average firm size, average assets size as sales to total assets ratios from the Risk Specifically, section 1661 of NDAA a proxy of startup costs and entry Management Association’s Annual 2013 states ‘‘SBA cannot limit the barriers, the 4-firm concentration ratio eStatement Studies, 2016–2018 (https:// number of size standards, and shall as a measure of industry competition, rmau.org). To evaluate Federal assign the appropriate size standard to and size distribution of firms using the contracting trends and evaluate one each industry identified by NAICS.’’ Gini coefficient. For each size standard exception in Sector 48–49 and one In the revised Methodology, which is type (i.e., receipts-based or employee- exception in Sector 53, SBA examined used in the ongoing, second 5-year based) SBA ranks industries both in the data on Federal prime contract review of size standards, SBA calculates terms of each of the four industry factors awards from the Federal Procurement a separate size standard to each NAICS and in terms of the existing size Data System—Next Generation (FPDS– industry. However, to account for errors standard and computes the 20th NG) (www.fpds.gov) for fiscal years and limitations associated with various percentile and 80th percentile values for 2016–2018. To assess the impact on data SBA evaluates in the size standards both. SBA then evaluates each industry financial assistance to small businesses, analysis, SBA will round the calculated by comparing its value for each industry SBA examined its internal data on 7(a) size standard value for a receipts-based factor to the 20th percentile and 80th and 504 loan programs for fiscal years size standard to the nearest $500,000, percentile values for the corresponding 2016–2018. For some portion of impact except for agricultural industries in factor for industries under a particular analysis, SBA also evaluated the data Subsectors 111 and 112 for which the type of size standard. from the System of Award Management calculated size standards will be (www.sam.gov). rounded to the nearest $250,000. This If the characteristics of an industry Data sources and estimation rounding procedure will be applied under review within a particular size procedures SBA uses in its size both in calculating a size standard for standard type are similar to the average standards analysis are documented in each of the five primary factors and in characteristics of industries within the detail in SBA’s Methodology, which is calculating the overall size standard for same size standard type in the 20th available at www.sba.gov/size. the industry. percentile, SBA will consider adopting As a policy decision, SBA will as an appropriate size standard for that Dominance in Field of Operation continue to maintain the minimum and industry the 20th percentile value of Section 3(a) of the Small Business Act maximum levels for both receipts-based size standards for those industries. For (15 U.S.C. 632(a)) defines a small and employee-based size standards. each size standard type, if the industry’s business concern as one that is: (1) Accordingly, SBA will not generally characteristics are similar to the average Independently owned and operated; (2) propose or adopt a size standard that is characteristics of industries in the 80th not dominant in its field of operation; either below the minimum level or percentile, SBA will assign a size and (3) within a specific small business above the maximum, even though the standard that corresponds to the 80th definition or size standard established calculations yield values below the percentile in the size standard rankings by SBA Administrator. SBA considers minimum or above the maximum. The of industries. A separate size standard is as part of its evaluation whether a minimum size standard reflects the size established for each factor based on the business concern at a proposed size an established small business should be amount of differences between the standard would be dominant in its field to have adequate capabilities and factor value for an industry under a of operation. For this, SBA generally resources to be able to compete for and particular size standard type and 20th examines the industry’s market share of perform Federal contracts (but does not percentile and 80th percentile values for firms at the proposed or revised size account for small businesses that are the corresponding factor for all standard as well as the distribution of newly formed or just starting industries in the same type. firms by size. Market share and size operations). On the other hand, the Specifically, the actual level of the new distribution may indicate whether a maximum size standard represents the size standard for each industry factor is firm can exercise a major controlling level above which businesses, if derived by a linear interpolation using influence on a national basis in an qualified as small, would outcompete the 20th percentile and 80th percentile industry where a significant number of much smaller businesses when values of that factor and corresponding business concerns are engaged. If a accessing Federal assistance. percentiles of size standards. Each contemplated size standard includes a With respect to receipts-based size calculated size standard is bounded dominant firm, SBA will consider a standards, SBA has established $6 between the minimum and maximum lower size standard to exclude the million and $41.5 million, respectively, size standards levels, as discussed dominant firm from being defined as as the minimum and maximum size before. As noted earlier, the calculated small. standard levels (except for most value for a receipts-based size standard agricultural industries in NAICS Selection of Size Standards for each industry factor is rounded to Subsectors 111 and 112). These levels In the Methodology SBA applied to the nearest $500,000, except for reflect the current minimum of $6.0 industries in Subsectors 111 and 112 for the first 5-year comprehensive review of million and the current maximum of size standards, SBA adopted a fixed which a calculated size standard is $41.5 million. The industry data seems rounded to the nearest $250,000. number of size standards levels as part to suggest that $6 million minimum and of its effort to simplify size standards. In $41.5 million maximum size standards Table 2, 20th and 80th Percentiles of response to public comments to the would be too high for agricultural Industry Factors for Receipts-Based Size 2009 Methodology white paper, and the industries. Standards, shows the 20th percentile 2013 amendment to the Small Business and 80th percentile values for average Act (section 3(a)(8)) under section 1661 Evaluation of Industry Factors firm size (simple and weighted), average for the National Defense Authorization As mentioned earlier, to assess the assets size, 4-firm concentration ratio, Act of Fiscal Year 2013 (‘‘NDAA 2013’’) appropriateness of the current size and Gini coefficient for industries with (Public Law 112–239, January 2, 2013), standards SBA evaluates the structure of receipts based size standards.

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TABLE 2—20TH AND 80TH PERCENTILES OF INDUSTRY FACTORS FOR RECEIPTS-BASED SIZE STANDARDS

Weighted 4-firm Simple average average receipts Average assets concentration Gini Industries/percentiles receipts size size size ratio coefficient ($ million) ($ million) ($ million) (%)

Industries, excluding Subsectors 111 and 112 20th percentile ...... 0.83 19.42 0.34 7.9 0.686 80th percentile ...... 7.52 830.65 5.19 42.4 0.834 Industries in Subsectors 111 and 112 20th percentile ...... 0.06 1.48 0.07 1.7 0.608 80th percentile ...... 0.83 13.32 0.88 12.3 0.908

Estimation of Size Standards Based on million is 15.9 percent between the 20th industry with $20 million or more in Industry Factors percentile value ($0.83 million) and the annual Federal contract dollars, SBA An estimated size standard supported 80th percentile value ($7.52 million) of evaluates the small business share of by each industry factor is derived by simple average receipts (($1.9 total Federal contract dollars relative to ¥ ÷ comparing its value for a specific million $0.83 million) ($7.52 the small business share of total ¥ industry to the 20th percentile and 80th million $0.83 million) = 0.159 or industry receipts. All other factors being percentile values for that factor. If an 15.9%). Applying this percentage to the equal, if the share of Federal contracting industry’s value for a particular factor is difference between the 20th percentile dollars awarded to small businesses in near the 20th percentile value in the value ($8 million) and 80th percentile an industry is significantly less than the distribution, the supported size ($35.0 million) value of size standards small business share of that industry’s standard will be one that is close to the and then adding the result to the 20th total receipts, a justification would exist 20th percentile value of size standards percentile size standard value ($8.0 for considering a size standard higher for industries in the size standards million) yields a calculated size than the current size standard. group, which is $8.0 million. If a factor standard value of $12.32 million Conversely, if the small business share for an industry is close to the 80th ([{$35.0 million¥$8.0 million} * 0.159] of Federal contracting activity is near or percentile value of that factor, it would + $8.0 million = $12.32 million). The above the small business share in total support a size standard that is close to final step is to round the calculated industry receipts, this will support the the 80th percentile value in the $12.32 million size standard to the current size standard. distribution of size standards, which is nearest $500,000, which in this example SBA increases the existing size $35.0 million. For a factor that is within, yields $12.5 million. This procedure is standards by certain percentages when above, or below the 20–80th percentile applied to calculate size standards the small business share of total range, the size standard is calculated supported by other industry factors. industry receipts exceeds the small using linear interpolation based on the Detailed formulas involved in these business share of total Federal contract 20th percentile and 80th percentile calculations are presented in SBA’s dollars by 10 or more percentage points. values for that factor and the 20th Methodology, which is available on its Proposed percentage increases generally percentile and 80th percentile values of website at www.sba.gov/size. reflect receipts levels needed to bring the small business share of Federal size standards. Derivation of Size Standards Based on For example, if an industry’s simple contracts at par with the small business Federal Contracting Factor average receipts are $1.9 million that share of industry receipts. These would support a size standard of $11.5 Besides industry structure, SBA also proposed percentage increases for million. According to Table 2, the 20th evaluates Federal contracting data to receipts-based size standards are given percentile and 80th percentile values of assess the success of small businesses in in Table 3, Proposed Adjustments to average receipts are $0.83 million and getting Federal contracts under the Size Standards Based on Federal $7.52 million, respectively. The $1.9 existing size standards. For each Contracting Factor.

TABLE 3—PROPOSED ADJUSTMENTS TO SIZE STANDARDS BASED ON FEDERAL CONTRACTING FACTOR

Percentage difference between the small business shares of total Federal contract Size standards dollars in an industry and of total industry receipts >¥10% ¥10% to ¥30% <¥30%

Receipts based standards <$15 million ...... No change ...... Increase 30% ...... Increase 60% $15 million to <$25 million ...... No change ...... Increase 20% ...... Increase 40% $25 million to <$41.5 million ...... No change ...... Increase 15% ...... Increase 25%

For example, if an industry with the the small business share of total Federal multiplying the current $8.0 million current size standard of $8.0 million contract dollars would be 25 percent standard by 1.3 (i.e., 30% increase) and had an average of $50 million in Federal less than the small business share of then by rounding the result to the contracting dollars, of which 15 percent total industry receipts (40%¥15%). nearest $500,000, yielding a size went to small businesses, and if that According to the above rule, the new standard of $10.5 million. SBA small businesses accounted for 40 size standard for the Federal contracting evaluated the small business share of percent of total receipts of that industry, factor for that industry would be set by total Federal contract dollars for fifty-six

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(56) industries (including 23 in Sector Derivation of Overall Industry Size (Receipts), below, shows the results of 48–49, seven (7) in Sector 51, 12 in Standard analyses of industry and Federal Sector 52, and 14 in Sector 53) covered The SBA’s Methodology presented contracting factors for each industry and by this proposed rule which had $20 above results in five separate size subindustry (exception) covered by this million or more in average annual standards based on evaluation of the proposed rule. NAICS industries in Federal contract dollars during fiscal five primary factors (i.e., four industry columns 2, 3, 4, 5, 6, 7, and 8 show two years 2016–2018. The Federal factors and one Federal contracting numbers. The upper number is the contracting factor was significant (i.e., factor). SBA typically derives an value for the industry or Federal the difference between the small industry’s overall size standard by contracting factor shown on the top of business share of total industry receipts assigning equal weights to size the column and the lower number is the and small business share of Federal standards supported by each of these size standard supported by that factor. contracting dollars was 10 percentage five factors. However, if necessary, Column 9 shows a calculated new size points or more) in eighteen (18) of these SBA’s Methodology would allow standard for each industry. This is the industries, prompting an upward assigning different weights to some of average of the size standards supported adjustment of their existing size these factors in response to its policy by each factor, rounded to the nearest standards based on that factor. For the decisions and other considerations. For $500,000 for non-agriculture industries detailed calculations, see SBA’s remaining 38 industries that averaged and rounded to the nearest $250,000 for Methodology, available at www.sba.gov/ $20 million or more in average annual agriculture industries. Analytical details size. contract dollars, the Federal contracting involved in the averaging procedure are factor was not significant, and the Calculated Size Standards Based on described in SBA’s Methodology, which existing size standard was applied for Industry and Federal Contracting is available at www.sba.gov/size. For that factor. Factors comparison with the calculated new Table 4, Size Standards Supported by size standards, the current size Each Factor for Each Industry standards are in column 10 of Table 4. TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS) [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated Current average average Average Four-firm Gini contract size size NAICS code NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

481219 Other Nonscheduled Air Trans- Factor ...... $3.6 $76.4 $2.2 36.8 0.803 ¥8.2 $22.0 $16.5 portation. Size Std. .. 19.0 10.0 18.5 30.5 29.5 16.5 484110 General Freight Trucking, Local Factor ...... 0.9 10.7 0.3 1.8 0.717 ...... 9.0 30.0 Size Std. .. 8.5 7.5 8.0 6.0 14.0 484121 General Freight Trucking, Long- Factor ...... 3.5 734.6 1.6 14.5 0.827 ...... 22.0 30.0 Distance, Truckload. Size Std. .. 19.0 32.0 15.0 13.0 33.5 484122 General Freight Trucking, Long- Factor ...... 10.2 2,209.7 4.9 41.8 0.882 ...... 38.0 30.0 Distance, Less Than Truckload. Size Std. .. 41.5 41.5 33.5 34.5 41.5 484210 Used Household and Office Factor ...... 1.9 309.3 0.7 26.1 0.791 15.0 21.0 30.0 Goods Moving. Size Std. .. 12.5 17.5 10.0 22.0 27.0 30.0 484220 Specialized Freight (except Used Factor ...... 1.2 30.7 0.5 3.9 0.733 ¥29.2 15.0 30.0 Goods) Trucking, Local. Size Std. .. 9.5 8.5 9.0 6.0 16.5 34.5 484230 Specialized Freight (except Used Factor ...... 4.4 201.1 2.3 11.1 0.822 10.6 22.0 30.0 Goods) Trucking, Long-Distance. Size Std. .. 22.0 14.0 19.0 10.5 32.5 30.0 485111 Mixed Mode Transit Systems ..... Factor ...... 6.5 ...... 3.6 ...... ¥23.7 25.5 16.5 Size Std. .. 31.0 26.0 20.0 485112 Commuter Rail Systems ...... Factor ...... 117.7 ...... 65.4 ...... 41.5 16.5 Size Std. .. 41.5 41.5 485113 Bus and Other Motor Vehicle Factor ...... 5.3 323.4 3.0 56.1 0.858 49.1 28.5 16.5 Transit Systems. Size Std. .. 26.0 18.0 22.5 41.5 39.0 16.5 485119 Other Urban Transit Systems ..... Factor ...... 15.7 157.6 8.7 ...... 0.811 ...... 33.0 16.5 Size Std. .. 41.5 12.5 41.5 30.5 485210 Interurban and Rural Bus Trans- Factor ...... 3.7 120.3 3.1 51.5 0.817 ...... 28.0 16.5 portation. Size Std. .. 19.5 11.5 23.0 41.5 32.0 485310 Taxi Service ...... Factor ...... 0.8 20.6 0.3 11.8 0.781 ...... 13.0 16.5 Size Std. .. 8.0 8.0 8.0 11.0 25.0 485320 Limousine Service ...... Factor ...... 0.9 29.5 0.4 12.1 0.759 ...... 12.5 16.5 Size Std. .. 8.5 8.5 8.0 11.0 21.5 485410 School and Employee Bus Factor ...... 3.4 834.1 2.2 41.4 0.823 ¥14.2 26.5 16.5 Transportation. Size Std. .. 18.0 35.0 18.5 34.5 33.0 20.0 485510 Charter Bus Industry ...... Factor ...... 2.4 28.1 1.9 14.3 0.701 ...... 13.0 16.5 Size Std. .. 14.5 8.5 16.5 13.0 11.0 485991 Special Needs Transportation .... Factor ...... 1.4 42.0 0.5 15.0 0.730 24.2 13.0 16.5 Size Std. .. 10.0 9.0 9.0 13.5 16.0 16.5 485999 All Other Transit and Ground Factor ...... 1.1 28.8 0.5 22.9 0.787 1.4 16.0 16.5 Passenger Transportation. Size Std. .. 9.0 8.5 9.0 20.0 26.5 16.5 486210 Pipeline Transportation of Nat- Factor ...... 183.9 1,264.9 73.6 34.5 0.833 ...... 36.5 30.0 ural Gas. Size Std. .. 41.5 41.5 41.5 29.0 34.5 486990 All Other Pipeline Transportation Factor ...... 21.4 80.7 8.6 93.0 0.737 ...... 31.5 40.5 Size Std. .. 41.5 10.0 41.5 41.5 17.5 487110 Scenic and Sightseeing Trans- Factor ...... 1.8 36.7 1.1 32.1 0.763 ...... 18.0 8.0 portation, Land. Size Std. .. 12.0 8.5 12.0 27.0 22.0

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated Current average average Average Four-firm Gini contract size size NAICS code NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

487210 Scenic and Sightseeing Trans- Factor ...... 0.9 18.8 0.7 16.4 0.735 ...... 12.5 8.0 portation, Water. Size Std. .. 8.5 8.0 10.0 14.5 17.0 487990 Scenic and Sightseeing Trans- Factor ...... 2.5 30.0 1.5 44.1 0.781 ...... 22.0 8.0 portation, Other. Size Std. .. 15.0 8.5 14.5 36.5 25.5 488111 Air Traffic Control ...... Factor ...... 20.5 64.0 12.8 90.7 0.691 0.1 30.5 35.0 Size Std. .. 41.5 9.5 41.5 41.5 9.0 35.0 488119 Other Airport Operations ...... Factor ...... 5.5 129.3 3.5 22.6 0.798 ¥1.0 25.5 35.0 Size Std. .. 27.0 11.5 25.5 19.5 28.5 35.0 488190 Other Support Activities for Air Factor ...... 5.3 273.2 2.9 18.7 0.839 ¥21.3 27.5 35.0 Transportation. Size Std. .. 26.0 16.5 22.5 16.5 36.0 40.5 488210 Support Activities for Rail Trans- Factor ...... 9.7 159.1 5.7 29.8 0.807 ...... 30.0 16.5 portation. Size Std. .. 41.5 12.5 37.5 25.0 30.0 488310 Port and Harbor Operations ...... Factor ...... 8.2 230.4 9.1 56.1 0.850 21.3 38.0 41.5 Size Std. .. 37.5 15.0 41.5 41.5 38.0 41.5 488320 Marine Cargo Handling ...... Factor ...... 34.2 680.6 34.2 49.1 0.837 ¥7.4 39.0 41.5 Size Std. .. 41.5 30.0 41.5 40.0 35.5 41.5 488330 Navigational Services to Ship- Factor ...... 4.4 68.4 3.6 22.6 0.806 ¥32.6 26.5 41.5 ping. Size Std. .. 22.5 9.5 26.5 19.5 30.0 41.5 488390 Other Support Activities for Factor ...... 2.7 41.4 2.1 23.0 0.791 ¥19.9 23.5 41.5 Water Transportation. Size Std. .. 15.5 8.5 17.5 20.0 27.0 41.5 488410 Motor Vehicle Towing ...... Factor ...... 0.6 4.7 0.3 4.1 0.620 ...... 7.0 8.0 Size Std. .. 7.0 7.5 7.5 6.0 6.0 488490 Other Support Activities for Road Factor ...... 1.8 55.8 0.8 24.9 0.794 ¥16.3 16.0 8.0 Transportation. Size Std. .. 12.0 9.0 10.5 21.5 27.5 10.5 488510 Freight Transportation Arrange- Factor ...... 3.4 254.1 0.8 11.0 0.787 ¥39.0 17.5 16.5 ment. Size Std. .. 18.0 16.0 10.5 10.5 26.5 23.0 488510 Exception, Non-Vessel Owning Factor ...... NA NA NA NA NA ...... 30.0 30.0 Common Carriers and Household Goods Size Std ... NA NA NA NA NA Forwarders. 488991 Packing and Crating ...... Factor ...... 1.5 22.5 0.6 15.8 0.752 ¥22.1 17.5 30.0 Size Std. .. 11.0 8.0 9.0 14.0 20.0 34.5 488999 All Other Support Activities for Factor ...... 13.2 48.2 4.7 ...... 0.5 22.0 8.0 Transportation. Size Std. .. 41.5 9.0 32.5 8.0 491110 Postal Service (Necessary data Factor ...... NA NA NA NA NA ...... 8.0 8.0 not available to estimate the the factor Size Std. .. NA NA NA NA NA and supported size standard). 492210 Local Messengers and Local De- Factor ...... 0.8 22.4 0.2 12.4 0.725 ...... 10.5 30.0 livery. Size Std. .. 8.0 8.0 7.5 11.5 15.0 493110 General Warehousing and Stor- Factor ...... 3.5 444.9 2.1 22.6 0.842 21.3 25.0 30.0 age. Size Std. .. 19.0 22.0 17.5 19.5 36.5 30.0 493120 Refrigerated Warehousing and Factor ...... 6.4 237.4 7.1 38.1 0.798 ¥17.6 32.0 30.0 Storage. Size Std. .. 30.5 15.5 41.5 31.5 28.5 34.5 493130 Farm Product Warehousing and Factor ...... 2.1 13.5 1.2 19.1 0.723 ...... 13.5 30.0 Storage. Size Std. .. 13.0 8.0 12.5 16.5 14.5 493190 Other Warehousing and Storage Factor ...... 4.9 592.7 2.6 50.7 0.867 14.1 32.0 30.0 Size Std. .. 24.5 27.0 20.5 41.5 41.0 30.0 511210 Software Publishers ...... Factor ...... 29.1 11,979.9 24.2 41.4 0.871 17.9 40.0 41.5 Size Std. .. 41.5 41.5 41.5 34.0 41.5 41.5 512110 Motion Picture and Video Pro- Factor ...... 4.6 3,814.6 2.2 46.4 0.865 75.4 33.0 35.0 duction. Size Std. .. 23.0 41.5 18.0 38.0 40.5 35.0 512120 Motion Picture and Video Dis- Factor ...... 4.5 107.2 3.0 38.3 0.814 ...... 26.0 34.5 tribution. Size Std. .. 22.5 11.0 22.5 32.0 31.5 512131 Motion Picture Theaters (except Factor ...... 7.0 1,303.2 6.4 55.7 0.848 ...... 39.5 41.5 Drive-Ins). Size Std. .. 33.0 41.5 41.5 41.5 37.5 512132 Drive-In Motion Picture Theaters Factor ...... 0.5 2.8 0.4 27.3 0.604 ...... 11.0 8.0 Size Std. .. 6.5 7.5 8.5 23.0 6.0 512191 Teleproduction and Other Factor ...... 2.2 110.7 1.3 23.8 0.817 ...... 19.5 34.5 Postproduction Services. Size Std. .. 13.5 11.0 13.5 20.5 32.0 512199 Other Motion Picture and Video Factor ...... 2.8 86.7 1.4 66.6 0.815 ...... 25.0 22.0 Industries. Size Std. .. 16.0 10.0 14.0 41.5 31.5 512240 Sound Recording Studios ...... Factor ...... 0.6 7.9 0.4 13.4 0.696 ...... 9.5 8.0 Size Std. .. 7.0 7.5 8.0 12.5 10.0 512290 Other Sound Recording Indus- Factor ...... 1.3 38.4 0.9 42.0 0.777 ...... 20.0 12.0 tries. Size Std. .. 10.0 8.5 11.0 34.5 24.5 515111 Radio Networks ...... Factor ...... 11.8 2,274.1 16.8 76.5 0.873 ...... 41.5 35.0 Size Std. .. 41.5 41.5 41.5 41.5 41.5 515112 Radio Stations ...... Factor ...... 4.2 1,018.6 5.9 46.2 0.834 ...... 36.0 41.5 Size Std. .. 21.5 41.5 39.0 38.0 35.0 515120 Television Broadcasting ...... Factor ...... 53.4 3,348.2 66.8 52.0 0.879 ...... 41.5 41.5 Size Std. .. 41.5 41.5 41.5 41.5 41.5 515210 Cable and Other Subscription Factor ...... 154.7 7,147.3 119.0 58.9 0.894 ...... 41.5 41.5 Programming. Size Std. .. 41.5 41.5 41.5 41.5 41.5 517410 Satellite Telecommunications ..... Factor ...... 15.8 753.3 6.6 48.1 0.865 1.5 38.5 35.0 Size Std. .. 41.5 32.5 41.5 39.5 40.5 35.0

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated Current average average Average Four-firm Gini contract size size NAICS code NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

517919 All Other Telecommunications .... Factor ...... 6.8 764.1 3.1 39.5 0.869 ¥3.9 33.0 35.0 Size Std. .. 32.0 33.0 23.5 32.5 41.5 35.0 518210 Data Processing, Hosting, and Factor ...... 10.9 1,122.5 5.5 15.9 0.849 8.2 33.0 35.0 Related Services. Size Std. .. 41.5 41.5 36.5 14.0 37.5 35.0 519110 News Syndicates ...... Factor ...... 7.7 263.9 2.6 59.5 0.859 ...... 32.0 30.0 Size Std. .. 35.5 16.0 21.0 41.5 39.5 519120 Libraries and Archives ...... Factor ...... 1.1 88.8 0.4 34.1 0.803 9.3 18.5 16.5 Size Std. .. 9.0 10.5 8.0 28.5 29.5 16.5 519190 All Other Information Services .... Factor ...... 2.9 117.8 1.1 43.0 0.846 ¥25.8 26.5 30.0 Size Std. .. 16.5 11.5 12.5 35.5 37.0 34.5 522220 Sales Financing ...... Factor ...... 34.7 3,705.1 115.7 33.6 0.885 ...... 38.0 41.5 Size Std. .. 41.5 41.5 41.5 28.0 41.5 522291 Consumer Lending ...... Factor ...... 9.7 2,845.5 32.2 52.3 0.873 ...... 41.5 41.5 Size Std. .. 41.5 41.5 41.5 41.5 41.5 522292 Real Estate Credit ...... Factor ...... 28.9 8,476.2 57.7 43.7 0.869 ...... 40.0 41.5 Size Std. .. 41.5 41.5 41.5 36.0 41.5 522293 International Trade Financing ..... Factor ...... 3.7 44.4 7.3 46.9 0.806 ...... 31.0 41.5 Size Std. .. 19.5 9.0 41.5 38.5 30.0 522294 Secondary Market Financing ...... Factor ...... 2,094.2 ...... 4,188.4 ...... 41.5 41.5 Size Std. .. 41.5 41.5 522298 All Other Nondepository Credit Factor ...... 6.0 ...... 30.0 ...... 35.5 41.5 Intermediation. Size Std. .. 29.0 41.5 522310 Mortgage and Nonmortgage Factor ...... 1.1 44.5 1.9 11.0 0.742 ¥10.5 13.0 8.0 Loan Brokers. Size Std. .. 9.0 9.0 16.5 10.5 18.0 10.5 522320 Financial Transactions Proc- Factor ...... 21.3 2,801.2 14.2 37.0 0.886 0.8 39.5 41.5 essing, Reserve, and Clearinghouse Ac- Size Std. .. 41.5 41.5 41.5 31.0 41.5 41.5 tivities. 522390 Other Activities Related to Credit Factor ...... 3.1 239.2 3.8 18.1 0.854 ¥16.0 25.0 22.0 Intermediation. Size Std. .. 17.0 15.5 27.5 16.0 38.5 26.5 523110 Investment Banking and Securi- Factor ...... 41.2 7,592.5 29.4 46.7 0.891 1.1 41.0 41.5 ties Dealing. Size Std. .. 41.5 41.5 41.5 38.5 41.5 41.5 523120 Securities Brokerage ...... Factor ...... 13.3 5,432.2 5.5 33.9 0.886 ...... 37.0 41.5 Size Std. .. 41.5 41.5 37.0 28.5 41.5 523130 Commodity Contracts Dealing .... Factor ...... 11.5 314.6 4.1 35.9 0.872 ...... 32.5 41.5 Size Std. .. 41.5 18.0 29.0 30.0 41.5 523140 Commodity Contracts Brokerage Factor ...... 4.7 366.7 1.2 40.1 0.851 ...... 26.5 41.5 Size Std. .. 23.5 19.5 13.0 33.0 38.0 523210 Securities and Commodity Ex- Factor ...... 692.4 2,097.6 314.7 84.8 0.683 ...... 33.0 41.5 changes. Size Std. .. 41.5 41.5 41.5 41.5 7.5 523910 Miscellaneous Intermediation ..... Factor ...... 2.4 332.7 12.1 19.4 0.827 ...... 27.0 41.5 Size Std. .. 14.5 18.5 41.5 17.0 33.5 523920 Portfolio Management ...... Factor ...... 9.2 1,893.2 7.6 13.0 0.868 12.9 35.5 41.5 Size Std. .. 41.5 41.5 41.5 12.0 41.0 41.5 523930 Investment Advice ...... Factor ...... 2.3 847.8 0.9 29.2 0.842 ¥20.8 27.5 41.5 Size Std. .. 14.0 35.5 11.0 24.5 36.5 41.5 523991 Trust, Fiduciary, and Custody Factor ...... 8.7 2,183.6 9.6 58.7 0.873 1.4 41.5 41.5 Activities. Size Std. .. 39.5 41.5 41.5 41.5 41.5 41.5 523999 Miscellaneous Financial Invest- Factor ...... 12.1 1,063.7 20.2 63.5 0.884 23.7 41.5 41.5 ment Activities. Size Std. .. 41.5 41.5 41.5 41.5 41.5 41.5 524113 Direct Life Insurance Carriers ..... Factor ...... 813.7 19,613.2 1,162.4 29.1 0.887 ...... 37.5 41.5 Size Std. .. 41.5 41.5 41.5 24.5 41.5 524114 Direct Health and Medical Insur- Factor ...... 866.5 28,836.1 393.9 34.4 0.866 3.1 38.5 41.5 ance Carriers. Size Std. .. 41.5 41.5 41.5 28.5 40.5 41.5 524127 Direct Title Insurance Carriers .... Factor ...... 16.3 3,552.3 8.6 89.4 0.888 ...... 41.5 41.5 Size Std. .. 41.5 41.5 41.5 41.5 41.5 524128 Other Direct Insurance (except Factor ...... 26.0 813.3 52.1 43.1 0.877 ...... 39.0 41.5 Life, Health, and Medical) Carriers. Size Std. .. 41.5 34.5 41.5 35.5 41.5 524130 Reinsurance Carriers ...... Factor ...... 363.4 3,744.8 403.7 49.4 0.831 ...... 39.5 41.5 Size Std. .. 41.5 41.5 41.5 40.5 34.5 524210 Insurance Agencies and Factor ...... 0.9 488.3 0.5 11.2 0.735 ¥45.1 13.0 8.0 Brokerages. Size Std. .. 8.0 23.5 9.0 10.5 17.0 13.0 524291 Claims Adjusting ...... Factor ...... 1.7 119.8 0.6 21.8 0.812 ...... 18.0 22.0 Size Std. .. 11.5 11.5 9.5 19.0 31.0 524292 Third Party Administration of In- Factor ...... 48.1 34,890.1 28.3 76.3 0.886 58.1 40.0 35.0 surance and Pension Funds. Size Std. .. 41.5 41.5 41.5 41.5 41.5 35.0 524298 All Other Insurance Related Ac- Factor ...... 3.2 411.0 2.1 49.2 0.848 ¥14.7 27.0 16.5 tivities. Size Std. .. 17.5 21.0 18.0 40.5 37.5 20.0 525110, Pension Funds, 525120, Health Factor ...... 2.7 216.2 13.8 ...... 0.8612 ...... 32.5 35.0 and Welfare Funds, and 525190, Other Size Std. .. 16.0 14.5 41.5 40.0 Insurance Funds, and 525920, Trusts, Estates, and Agency Accounts. 525910 Open-End Investment Funds ...... Factor ...... 2.6 24.5 13.2 58.2 0.807 ...... 31.5 35.0 Size Std. .. 15.5 8.0 41.5 41.5 30.0 525990 Other Financial Vehicles ...... Factor ...... 2.8 244.0 13.9 ...... 0.865 ...... 32.5 35.0 Size Std. .. 16.0 15.5 41.5 40.5

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TABLE 4—SIZE STANDARDS SUPPORTED BY EACH FACTOR FOR EACH INDUSTRY (RECEIPTS)—Continued [Upper value = calculated factor, lower value = size standard supported]

Simple Weighted Federal Calculated Current average average Average Four-firm Gini contract size size NAICS code NAICS industry title Type firm size firm size assets size ratio coefficient factor standard standard ($ million) ($ million) ($ million) (%) (%) ($ million) ($ million)

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

531110 Lessors of Residential Buildings Factor ...... 1.7 333.6 8.5 9.3 0.765 ¥3.8 23.5 30.0 and Dwellings. Size Std. .. 11.5 18.5 41.5 9.0 22.5 30.0 531120 Lessors of Nonresidential Build- Factor ...... 3.1 691.1 31.1 11.5 0.825 ¥6.2 28.0 30.0 ings (except Miniwarehouses). Size Std. .. 17.0 30.5 41.5 11.0 33.5 30.0 531130 Lessors of Miniwarehouses and Factor ...... 0.8 413.7 4.2 33.7 0.698 ...... 20.5 30.0 Self-Storage Units. Size Std. .. 8.0 21.0 29.0 28.0 10.5 531190 Lessors of Other Real Estate Factor ...... 0.9 84.1 4.4 18.0 0.689 ...... 16.0 30.0 Property. Size Std. .. 8.0 10.0 30.5 16.0 8.5 Exception to 531110,531120,531130, Factor ...... 45.1 1,172.4 297.9 47.5 0.862 60.3 40.5 41.5 and 531190—Review footnote #9. Size Std. .. 41.5 41.5 41.5 39.0 40.0 41.5 531210 Offices of Real Estate Agents Factor ...... 0.9 398.6 0.4 13.3 0.758 ¥11.1 13.0 8.0 and Brokers. Size Std. .. 8.0 20.5 8.0 12.0 21.0 10.5 531311 Residential Property Managers .. Factor ...... 1.0 44.2 1.1 4.7 0.756 28.3 11.0 8.0 Size Std. .. 9.0 9.0 12.5 6.0 20.5 8.0 531312 Nonresidential Property Man- Factor ...... 1.0 28.0 5.2 5.9 0.732 ...... 17.0 8.0 agers. Size Std. .. 9.0 8.5 35.0 6.5 16.5 531320 Offices of Real Estate Appraisers Factor ...... 0.4 33.1 0.1 12.4 0.695 26.4 8.5 8.0 Size Std. .. 6.5 8.5 6.5 11.5 9.5 8.0 531390 Other Activities Related to Real Factor ...... 0.8 95.8 4.1 15.6 0.764 ¥12.5 17.0 8.0 Estate. Size Std. .. 8.0 10.5 29.0 14.0 22.5 10.5 532111 Passenger Car Rental ...... Factor ...... 13.3 7,875.5 19.0 90.1 0.889 ¥0.9 41.5 41.5 Size Std. .. 41.5 41.5 41.5 41.5 41.5 41.5 532112 Passenger Car Leasing ...... Factor ...... 16.8 830.6 56.0 62.4 0.873 0.2 41.0 41.5 Size Std. .. 41.5 35.0 41.5 41.5 41.5 41.5 532120 Truck, Utility Trailer, and RV Factor ...... 9.2 1,781.6 15.3 62.6 0.869 58.8 41.5 41.5 (Recreational Vehicle) Rental and Leas- Size Std. .. 41.5 41.5 41.5 41.5 41.0 41.5 ing. 532210 Consumer Electronics and Appli- Factor ...... 10.7 2,040.5 5.9 80.1 0.866 ...... 40.5 41.5 ances Rental. Size Std. .. 41.5 41.5 39.0 41.5 40.5 532281 Formal Wear and Costume Rent- Factor ...... 0.6 12.0 0.3 24.9 0.714 ...... 12.5 22.0 al. Size Std. .. 7.0 8.0 8.0 21.5 13.0 532282 Video Tape and Disc Rental ...... Factor ...... 2.3 1,168.7 1.2 86.1 0.865 ...... 31.0 30.0 Size Std. .. 14.0 41.5 13.0 41.5 40.5 532283 Home Health Equipment Rental Factor ...... 7.6 851.4 4.7 65.5 0.830 15.5 36.0 35.0 Size Std. .. 35.0 35.5 32.5 41.5 34.5 35.0 532284 Recreational Goods Rental ...... Factor ...... 0.5 4.7 0.2 10.0 0.632 ...... 7.5 8.0 Size Std. .. 6.5 7.5 7.5 9.5 6.0 532289 All Other Consumer Goods Rent- Factor ...... 1.1 34.1 0.6 15.1 0.708 ...... 11.0 8.0 al. Size Std. .. 9.0 8.5 9.5 13.5 12.0 532310 General Rental Centers ...... Factor ...... 0.9 6.3 0.7 6.9 0.610 ...... 7.5 8.0 Size Std. .. 8.5 7.5 9.5 7.0 6.0 532411 Commercial Air, Rail, and Water Factor ...... 18.8 2,011.1 46.9 61.4 0.882 33.4 40.0 35.0 Transportation Equipment Rental and Size Std. .. 41.5 41.5 41.5 41.5 41.5 35.0 Leasing. 532412 Construction, Mining, and For- Factor ...... 7.8 655.5 9.8 32.8 0.824 3.3 34.0 35.0 estry Machinery and Equipment Rental Size Std. .. 36.5 29.0 41.5 27.5 33.0 35.0 and Leasing. 532420 Office Machinery and Equipment Factor ...... 4.7 109.7 6.7 40.0 0.832 28.6 32.5 35.0 Rental and Leasing. Size Std. .. 23.5 11.0 41.5 33.0 34.5 35.0 532490 Other Commercial and Industrial Factor ...... 5.3 372.8 6.6 21.0 0.822 18.2 30.0 35.0 Machinery and Equipment Rental and Size Std. .. 26.0 20.0 41.5 18.0 33.0 35.0 Leasing. 533110 Lessors of Nonfinancial Intan- Factor ...... 14.0 795.5 28.0 23.0 0.867 ...... 35.0 41.5 gible Assets (except Copyrighted Works). Size Std. .. 41.5 34.0 41.5 20.0 41.0

Evaluation of Size Standards for of that analysis are discussed in the receipts. The data that SBA receives Subindustry Categories or ‘‘Exceptions’’ following two subsections. from the Census Bureau’s tabulation are limited to the 6-digit NAICS industry Non-Vessel Owning Common Carriers In accordance with SBA’s approach to level and therefore do not provide and Household Goods Forwarders evaluating size standards for information on economic characteristics subindustry categories (or Non-Vessel Owning Common Carriers of firms at the sub-industry level. Thus, ‘‘exceptions’’), SBA has evaluated the and Household Good Forwarders is an for reviewing or modifying size two (2) exceptions covered by this rule ‘‘exception’’ or subindustry under standards at the subindustry levels using the procedures described in the NAICS 488510 (Freight Transportation (‘‘exceptions’’), SBA normally evaluates revised SBA’s Methodology. The results Arrangement), with the size standard of data from FPDS–NG and SAM using a $30.0 million in average annual two-step procedure.

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First, using FPDS–NG, SBA identifies that correspond to the overall industry percent of total dollars obligated. Table Product Service Codes (PSCs) that including the exception, that amount to 5, Primary PSCs of NAICS 488510 and correspond to specific exceptions. SBA 95.6 percent of total dollars obligated on Average Dollars Obligated—Fiscal Years then identifies firms that have received NAICS 488510. These PSCs are V119 2016–2018, below identifies these five federal contracts under those PSCs and (Transportation/Travel/Relocation- (5) PSCs and their average total dollars evaluates their receipts and employee Transportation: Other), W023 (Lease- obligated for the fiscal years 2016–2018. data from SAM and FPDS–NG to derive Rent of Vehicles-Trailers-CYC), M1GZ the values for industry and federal SBA analyzed the contracting activity (Operation of Other Warehouse under these PSCs, but the Agency was contracting factors. Buildings), V112 (Transportation/ Contracting activity for NAICS 488510 unable to reliably differentiate the level Travel/Relocation-Transportation: including the exception is distributed of activity corresponding to the over roughly 70 different PSCs. Using Motor Freight) and R706 (Support- exception versus the overall industry, FPDS–NG data for fiscal years 2016– Management: Logistics Support). The and to identify any PSCs that would 2018, SBA identified 5 primary PSCs top PSC alone, V119, accounts for 70 correspond uniquely to the exception.

TABLE 5—PRIMARY PSCSOFNAICS 488510 AND AVERAGE TOTAL DOLLARS OBLIGATED FISCAL YEARS 2016–2018

Percentage Cumulative Dollars of dollars percentage PSC PSC description obligated obligated to of total NAICS ($ million) primary PSCs 488510

V119 ...... Transportation/Travel/Relocation-Transportation: Other ...... $126.76 70.2 70.2 W023 ...... Lease-Rent of Vehicles Trailers-CYC ...... 32.17 17.8 88.0 M1GZ ...... Operation of Other Warehouse Buildings ...... 7.96 4.4 92.4 V112 ...... Transportation/Travel/Relocation-Transportation: Motor Freight ...... 3.14 1.7 94.1 R706 ...... Support Management: Logistics Support ...... 2.62 1.5 95.6

Total ...... 180.64 100.0 ...... Source: FPDS–NG.

SBA also reviewed the distribution of In an effort to differentiate the activity classified as an exception to the contracts awarded to small and other exception from the overall industry and General NAICS 6 digit 488510. The than small businesses in the overall determine its economic characteristics, NAICS 4885101 includes multimodal industry. SBA found that only about $2 SBA evaluated 2012 Economic Census activities supporting transportation, and million or 1.1% of the $189.9 Million sub-industry data found in the US the firms assume responsibility for obligated to the overall industry went to Census American FactFinder. The data delivery of the goods.1 small businesses. Thus, while the total divide NAICS 488510 in two contracting dollars obligated to all firms components identified with an SBA evaluated the economic in the industry is significant, the total additional digit. First, the 7-digit level characteristics of NAICS 4885101 to the dollars obligated to small firms is not. NAICS 4885101 (Freight Forwarders), overall industry and found them to be Additionally, the top agencies using the and second the 7-digit level NAICS similar. Table 6, Industry Comparison NAICS code 488510, USTRANSCOM 4885102 (Arrangement of transportation NAICS 488510 and NAICS 4885101, and Federal Emergency Management of freight and cargo). The NAICS displays a comparison of several Agency, which account for 91.3 percent 4885101 includes Non-vessel operating economic factors between NAICS of total dollars obligated during the common carrier service as one of the 488510 (overall industry) and NAICS period evaluated, have no small principal activities. SBA understands 4885101 (industry exception). business dollars. that NAICS 4885101 corresponds to the

TABLE 6—INDUSTRY COMPARISON NAICS 488510 AND NAICS 4885101

Economic characteristic NAICS 488510 NAICS 4885101 (factor) (overall industry) (exception)

Average Firm Size by Total Receipts ($ millions) ...... $3.4 $4.0 Average Firm Size by Number of Employees ...... 16 17 Weighted Average Firm Size by Total Receipts ($ millions) ...... $121.9 $100.6 Concentration Ratio of Top 4 Largest Firms by Total Receipts (CR4) % ...... 11.0% 14.5% Percentage of Small Firms (based on current size standards) (%) ...... 88.1% 85.6% Source: U.S. Census Bureau, AmericanFactFinder and SBA calculations.

Despite the similarities between the distinctions between freight forwarders forwarder as a company that arranges overall industry and the exception, SBA and NVOCCs. For example, the Federal cargo movement to an international recognizes that there are important Maritime Commission defines a freight destination, dispatches shipments from

1 The Census definition is: ‘‘This U.S. Census receivers for a charge covering the entire assuming responsibility for delivery of the goods. Bureau NAICS-based industry comprises transportation, and in turn making use of the There is no relationship between shippers and the establishments primarily engaged in undertaking services of various freight carriers in affecting various freight carriers delivering the goods.’’ the transportation of goods from shippers to delivery, paying transportation charges, and

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the United States via common carriers business activities of NVOCCs also X1FZ (Lease or rental of other and books or otherwise arranges space supports this finding. Moreover, SBA’s residential buildings), and X179 (Lease for those shipments on behalf of analysis of contracting data found that or rent of other warehouse buildings) shippers and prepares and processes the contracting officers prefer to use the across the four NAICS industries within documentation and performs related lower size standard of $16.5 million 5311. Dollars obligated to these three activities pertaining to those rather than the higher size standard of PSCs add to $130.1 million in average shipments.’’ 2 Conversely, the Federal $30 million available for the exception. in fiscal years 2016–2018, which Maritime Commission defines an This suggests that agencies are able to represents 58.9 percent of total dollars NVOCC as ‘‘a common carrier that holds obtain the services needed provided by obligated to these NAICS 6-digit itself out to the public to provide ocean the overall NAICS using the lower size industries. The results, as shown in transportation, issues its own house bill standard applicable to NAICS 488510. Table 4, support retaining the current of lading or equivalent document, and For these reasons, SBA proposes to size standard of $41.5 million. does not operate the vessels by which retain the sub-industry category Evaluation of the Assets-Based Size ocean transportation is provided; a (‘‘exception’’) under NAICS 488510 and Standard shipper in its relationship with the its $30.0 Million size standard. SBA vessel-operating common carrier invites comments, along with In 1984, SBA published a notice of involved in the movement of cargo.’’ supporting information, on this policy allowing financial services that Thus, the distinction between freight proposal as well as suggestions on prime contractors procure from small forwarders and NVOCCs will be not on whether the proposed size standard of minority owned and controlled the activity or service provided, but in $17.5 million for the overall industry is financial institutions to qualify as the level of responsibility and the type more appropriate for this exception. subcontracts for purposes of meeting of revenue that counts for the firm. SBA also welcomes comments on the subcontracting goals and credits (see 49 Product Service Codes within NAICS percent of Federal contracting dollars FR 13091–01 (April 2, 1984)). 488510 do not distinguish between that correspond to NVOCCs versus the Concurrently, SBA also published a agents or NVOCCs, so it is a challenge overall industry. Finally, SBA requests proposed rule that a financial institution to choose a PSC code to evaluate the comments on available data sources that with total assets of not more than $100 exception. clearly define the economic million would be considered small (see Prior to 2000, the exception under characteristics of NVOCCs, and 49 FR 13052–01 (April 2, 1984)). SBA NAICS 488510 did not exist. SBA did Household Goods Forwarders as well. adopted the $100 million in total assets not recognize the differences between as the size standard for financial Exception to NAICS Industry Group freight forwarders acting as agents (or institutions (see 49 FR 49398–01 5311: Leasing of Building Space to the brokers) and freight forwarders that are (October 16, 1984)). Over time, the Federal Government by Owners Non-Vessel Operating Common Carriers definition of small depository (NVOCCs) and Household Goods The current size standard for Federal institution was extended to all financial Forwarders, and applied a similar size contracts for Leasing of Building Space institutions within NAICS 5221, to both ($18.5 million). to Federal Government by Owners Depository Credit Intermediation. Since On , 2000, SBA adopted the (‘‘exception’’ to NAICS industry group then, along with other monetary-based differentiation between agents and 5311 (531110, 531120, 531130, and size standards, SBA has periodically NVOCCs (65 FR 48601). SBA assigned a 531190) is $41.5 million. This size adjusted the assets-based size standard smaller size standard of $5 million to standard applies only to certain Federal for inflation, with the latest adjustment the overall industry which included the contracting opportunities that meet increasing it to $600 million (see 84 FR activity of agents and a higher size specific criteria. Footnote 9 of SBA’s 34261 (July 18, 2019)). standard of $18.5 million to the table of size standards (13 CFR 121.201) Currently, the $600 million assets- exception which included the activities reads: ‘‘For Government procurement, a based size standard applies to four of NVOCCs and Household Goods size standard of $41.5 million in gross industries within NAICS Industry Forwarders. SBA’s justification for a receipts applies to the owners of Group 5221, and one industry within lower size for the overall industry was building space leased to the Federal NAICS Industry Group 5222, Non- that the revenues of freight forwarders, Government. This size standard does depository Credit Intermediation. These which typically act as agents or brokers, not apply to an agent.’’ include NAICS 522110 (Commercial do not correspond to their To determine if the current $41.5 Banking), NAICS 522120 (Savings intermediation activity whereas the million size standard is appropriate, Institutions), NAICS 522130 (Credit revenues of NVOCCs, which typically SBA evaluated average firm size, market Unions), NAICS 522190 (Other act as wholesalers of cargo space, may concentration, and size distribution of Depository Credit Intermediation), and have substantial expenses not usually firms involved in Leasing of Building NAICS 522210 (Credit Card Issuing). incurred by agent or broker firms. Space to Federal Government by Because only a small number of Despite these distinctions, SBA’s Owners. SBA used data from FPDS–NG industries have assets-based size preliminary analysis of industry and SAM.gov and followed the standards, no comparison groups could structure suggests that firms in the procedure described under the section be developed to assess differing exception and overall industry may be ‘‘Sources of Industry and Program Data’’ characteristics of individual industries performing similar functions or that (above). Based on the data for fiscal based on total assets. Thus, most of the there may be significant overlap in the years 2016–2018, Federal contracts SBA’s size standards methodology is not services offered by freight forwarders awarded to NAICS 6 digit industries applicable to analyzing the assets-based and NVOCCs. The absence of an easily 531110, 531120, 531130 and 531190 size standards for financial institutions. identifiable PSC that is unique to the averaged about $221.0 million annually, Consequently, in this proposed rule, with the largest percentage going to SBA has examined the changes since 2 See Federal Maritime Commission web page for NAICS 531120 (75.5 percent). SBA 2011 (the year that the assets-based size definitions of Freight Forwarder and Non-Vessel chose to analyze dollars awarded to standard was last reviewed) in other Owning Common Carriers at: https://www.fmc.gov/ resources-services/ocean-transportation- product service codes (PSC) X111/ financial industry factors to assess intermediaries/. X1AA (Lease/Rental of Office Building), whether the current $600 million assets-

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based size standard should be modified specialization in terms of asset structure of minority-owned financial to reflect today’s financial industry concentration, such as credit card institutions since 2011. structure. Specifically, SBA evaluated services. Another field, Bank Charter The number of all depository changes from 2011 to 2018 (the latest Class, identifies the institutions as institutions, total assets and calculated year for which the financial institution banks or thrifts. SDI does not include industry factors for 2011 and 2018 are data are available) in average firm size, data on Credit Unions (NAICS 522130). shown on Table 7, Calculated Industry industry concentration, and distribution Because the data are not separated by of firms by size (i.e., Gini coefficient) for NAICS code, and also the differences Factors for All Depository Institutions. financial institutions. As it did in the among services offered by different All data were collected at the end of the Sector 52 proposed and final rules (see financial institutions (such as corresponding calendar year. Similar 77 FR 55737 (September 11, 2012) and commercial banks, saving institutions, calculations for the minority-owned 78 FR 37409 (June 20, 2013)) in the and credit card issuing companies) have depository institutions are shown on prior review, in this proposed rule, SBA greatly diminished over the recent Table 8, Calculated Industry Factors for both evaluated depository institutions decades, SBA has analyzed all financial Minority Owned Depository as a whole and the minority owned and institutions as one industry group. Institutions. For comparability, all controlled depository institutions SBA identified Minority Depository monetary values are expressed in 2018 separately. Institutions using the list of minority dollars, using the Bureau of Economic SBA evaluated all depository depository institutions compiled by the Analysis (BEA) GDP deflator for 2018 institutions using SDI data. SDI does not Federal Depository Institutions (FDIC) (Source: BEA’s Table 1.1.4. Price provide the NAICS definition for every (https://www.fdic.gov/regulations/ Indexes for Gross Domestic Product, firm included in the database. However, resources/minority/mdi.html). SBA https://apps.bea.gov/iTable/iTable.cfm? it has a field called Asset Concentration examined their characteristics using the reqid=19&step=2#reqid=19&step= Hierarchy, which can be used to assets data from SDI database too fully 2&isuri=1&1921=survey). identify each institution’s primary capture the changes in industry

TABLE 7—CALCULATED INDUSTRY FACTORS FOR ALL DEPOSITORY INSTITUTIONS [All monetary values are in millions of 2018 dollars]

Simple Weighted Year Number of Total assets average average Four-firm ratio Gini coefficient institutions firm size firm size (%)

2011 ...... 7,366 $15,682,868.5 $2,129.1 $84,083.9 41.0 0.907 2018 ...... 5,415 18,034,370.5 3,330.4 91,644.4 39.4 0.911 Source: SDI/FDIC (https://www7.fdic.gov/sdi/download_large_list_outside.asp). Data correspond to Fourth quarter of calendar year 2018 and deflated using GDP deflator).

TABLE 8—CALCULATED INDUSTRY FACTORS FOR MINORITY DEPOSITORY INSTITUTIONS [All monetary values are in millions of 2018 dollars]

Simple Weighted Year Number of Total assets average average Four-firm ratio Gini coefficient institutions firm size firm size (%)

2011 ...... 187 $204,192.6 $1,091.9 $9,923.4 40.6 0.782 2018 ...... 149 233,929.0 1,570.0 14,024.3 47.5 0.776 Source: FRB and FDIC (table https://www.fdic.gov/regulations/resources/minority/mdi-history.xlsx).

During the 2011 to 2018 span, as 41.0% to 39.4%), but the Gini For the five assets-based industries shown on Table 7, above, the financial coefficient value slightly increased from listed above, Federal contracting dollars industry continued to show a decrease 0.907 in 2011 to 0.911 in 2018. Overall, averaged about $130 million per year in the total number of depository the values of these factors confirm an during fiscal years 2016–2018. This institutions in 2018 as compared to increase over time in average size of the reflects a large increase in dollars 2011. The total number of all financial depository institutions, and an increase awarded to those industries when depository institutions decreased by in concentration. The average firm size compared to fiscal years 2008–2010, 26.5 percent from 7,366 in 2011 to 5,415 and Gini coefficient value for the when the average total dollars obligated in 2018, while their total assets minority owned banks on Table 8 also to them was about $22 million. Of those (measured in 2018 dollars) increased by confirmed the continuation of the trend five industries, NAICS 522110, 15.0 percent during the same period. of increased concentration in the Commercial Banking, accounts for 99.6 The average firm size (measured in total financial industry, even more than for percent of the average total dollars assets) also increased from 2011 to 2018, the total industry as reflected on Table obligated. Thus, under SBA’s with their simple average firm size 7. For example, the four firm methodology, different than the first increasing by a factor of 1.56 and the concentration ratio for minority comprehensive review, Federal weighted average firm size increasing by depository institutions increased from contracting is a significant factor for reviewing the assets-based size standard a factor of 1.09. The four largest 40.6 in 2011 to 47.5 in 2018. This is an for the industries. institutions’ share of total assets (also increase by a factor of 1.17, although the referred to as four-firm concentration Gini coefficient decreased slightly. The current structure of the financial ratio or CR4) slightly decreased (from industry relative to that for 2011, as

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discussed above, strongly supports and Related Activities: NAICS 522110 However, SBA determines size standard increasing the current $600 million (Commercial Banking), NAICS 522120 for this industry because it is useful for assets-based size standard. The changes (Savings Institutions), NAICS 522190 other purposes, such as rulemaking. in industry factors for all financial (Other depository Credit Table 9, Calculated Industry Factors for institutions on Table 7 as well as the Intermediation), and NAICS 522210 Credit Unions, provides the calculated results for the minority-owned (Credit Card Issuing). factors for Credit Unions. Between 2011 institutions in Table 8 support a size NAICS 522130, Credit Unions and 2018, the total number of concerns standard in the range of $700 million to diminished by 24 percent, but at the A credit union is a cooperative, not- $1 billion in total assets. SBA is same time the total assets increased by for-profit financial institution owned proposing $750 million as it would a factor of 1.34. The simple average include about 81 percent of the financial and controlled by its members. Credit unions are established and operated for almost doubled (1.77) between 2011 and institutions and 5.3 percent of total the purpose of promoting thrift and 2018 in real terms, and the weighted assets of all financial institutions as providing credit at competitive rates average grew by a factor of more than compared to 77.3 percent of institutions and other financial services to their 1.5. The four firm concentration ratio and about 4.6 percent of total assets membership. Generally, they could be increased by a factor of 1.24. Gini under the current $600 million. corporate credit unions, Federal, or coefficient did not change significantly Similarly, it would include about 75.2 State credit unions. Because this during the period. All these factors percent of institutions and 12.08 percent industry includes only not-for-profit support an increase of size standard for of the total assets of all minority owned institutions, SBA does not consider Credit Unions and SBA proposes $750 institutions, as compared to 71.4 them small business concerns for million as well. With this size standard, percent of institutions and 10.4 percent Federal government assistance. The the percentage of small firms will of total assets under the current $600 small business regulations state that a increase to 92.8 percent compared to million. business concern eligible for assistance 91.2 percent with the current $600 The proposed $750 million assets- from SBA as a small business is a million size standard. Similarly, the based size standard would apply to the business entity organized for profit, share of small business assets will following four industries within NAICS with a place of business located in the increase to about 30 percent from 25.7 Subsector 522, Credit Intermediation United States (see 13 CFR 121.05(a)(1)). percent.

TABLE 9—CALCULATED INDUSTRY FACTORS FOR CREDIT UNIONS [All monetary values are in millions of 2018 dollars]

Simple Weighted Year Number of Total assets average average Four-firm ratio Gini institutions firm size firm size (%) coefficient

2011 ...... 7,240 $1,096,069.7 $151.4 $3,720.2 9.8 0.828 2018 ...... 5,492 1,470,839.4 267.8 5,687.5 12.2 0.833 Source: NCUA,https://www.ncua.gov/analysis/credit-union-corporate-call-report-data/quarterly-dat.

Special Considerations amount of Federal contract dollars 1,500-employee size standard for NAICS awarded to small firms under the NAICS Subsector 525, Funds, Trusts 524126. current size standards. However, while and Other Financial Vehicles lowering size standards would cause no Summary of Calculated Size Standards As noted earlier, the 2012 Economic or very little impact on small businesses Census special tabulation includes data Of the one hundred-twenty four (124) in those industries, in response to the industries and two (2) subindustries only for two NAICS codes within COVID–19 emergency and its impacts (exceptions) reviewed in this proposed NAICS Subsector 525: NAICS 525910, on small businesses and the overall rule, the results from analyses of the Open-End Investment Funds, and economy, SBA is proposing to maintain NAICS 525990, Other Financial the size standards for those industries at latest available data on the five primary Vehicles. Because all industries in that their current levels. SBA seeks factors from Table 4, Size Standards Subsector currently share the same comments on this proposal as well as Supported by Each Factor for Each $35.0 million receipts-based size suggestion on alternative data sources, if Industry (millions of dollars), above, standard, SBA applies the results based any, to evaluate those industries. would support increasing size standards on data for NAICS 525910 and 525990, for forty five (45) industries, decreasing as shown in Table 4 (above), to all NAICS 524126, Direct Property and size standards for sixty-nine (69) remaining industries within this Causality Insurance Carriers industries, and retaining size standards Subsector and initially proposes the The current size standard for NAICS for 9 industries and 2 subindustries. same common size standard of $32.5 524126, Direct Property and Causality Additionally, SBA retained the size million in average annual receipts for all Insurance, is 1,500 employees, which standard for one industry that the six industries in Subsector 525. While SBA has not reviewed in this proposed Economic Census does not cover. Table that represents a slight decrease from rule. SBA will review this size standard 10, Summary of Calculated Size the current $35.0 million level, this together with other employee-based size Standards, summarizes these results by would have virtually no impacts on the standards at a later date. Until then, NAICS sector. number of small firms nor on the SBA proposes to retain the current

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TABLE 10—SUMMARY OF CALCULATED SIZE STANDARDS

Number of size Number of size Number of size Number of size NAICS sector Sector name standards re- standards in- standards de- standards un- viewed creased creased changed

48–49 ...... Transportation and Warehousing ...... 43 18 23 2 51 ...... Information ...... 19 8 9 2 52 ...... Finance and Insurance ...... 39 * 10 24 5 53 ...... Real Estate and Rental and Leasing * ...... 25 9 13 3

All Sectors ...... 126 45 69 12 * Includes five assets-based size industries.

Evaluation of SBA Loan Data territories, and the District of Columbia. stay at home orders, social distancing, Before proposing or deciding on an With the COVID–19 emergency, many etc.) have resulted in the present industry’s size standard revision, SBA small businesses nationwide are economic decline. A variety of also considers the impact of size experiencing economic hardship as a economic indicators such as the Gross standards revisions on SBA’s loan direct result of the Federal, State, and Domestic Product (GDP) and the programs. Accordingly, SBA examined local public health measures that are unemployment rate shows that this its internal 7(a) and 504 loan data for being taken to minimize the public’s recession is significantly worse than any fiscal years 2016–2018 to assess whether exposure to the virus. These measures, other recession since World War II. The the calculated size standards in Table 4 some of which are government- GDP decreased nearly 5 percent, and the above need further adjustments to mandated, are being implemented Personal consumption in goods and ensure credit opportunities for small nationwide and include the closures of services decreased 6.8 percent in the businesses through those programs. For restaurants, bars, and gyms. In addition, first quarter of 2020; in May 2020, the industries reviewed in this rule, the based on the advice of public health personal income decreased 4.2 percent data shows that it is mostly businesses officials, other measures, such as and the unemployment rate increased much smaller than the current or keeping a safe distance from others or from 3.5 percent in February 2020 to proposed size standards that receive even stay-at-home orders, are being 11.1 percent in June 2020, and also for SBA’s 7(a) and 504 loans. For example, implemented, resulting in a dramatic the month of June 2020, Non-farm for industries covered by this rule, more decrease in economic activity as the payroll decreased by 15 million since than 99.0 percent of 7(a) and 504 loans public avoids malls, retail stores, and February 2020. Specifically for the in fiscal years 2016–2018 went to other businesses. sectors evaluated in this proposed rule, businesses below the current or The Coronavirus Aid, Relief, and more recent data in June 2020 shows proposed size standards. Economic Security Act (the CARES Act that the unemployment rate for or the Act) (Pub. L. 116–136) was Transportation and Utilities was 12.9 Proposed Changes to Size Standards enacted on March 27, 2020, to provide percent, for the sector of Information Based on the analytical results in emergency assistance and health care 12.0 percent and for the Financial Table 4 and considerations of impacts of response for individuals, families, and Activities, 5.1 percent. In June 2019, the calculated size standards in terms of businesses affected by the coronavirus unemployment rates for these sectors access by currently small businesses to pandemic. Section 1102 of the Act were 3.7, 2.7 and 2 percent, SBA’s loans, as discussed above, of a temporarily permits SBA to guarantee respectively. The latest Federal Reserve total of one hundred twenty six (126) 100 percent of 7(a) loans under a new Board’s Monetary Policy Report shows industries or subindustries (exceptions) program titled the Paycheck Protection that in general the most impacted firms with monetary-based size standards in Program (PPP). Section 1106 of the Act in these sectors are small businesses.3. Sectors 48–49, 51, 52 and 53 that are provides for forgiveness of up to the full Accordingly, in view of above impacts covered by this rule, and considering principal amount of qualifying loans on small businesses from the COVID–19 the current emergency situation due to guaranteed under the PPP. The PPP and pandemic and Federal government the COVID–19 pandemic and its loan forgiveness are intended to provide efforts to provide relief to small impacts on small businesses and the economic relief to small businesses businesses and support to the overall overall economy, SBA proposes to nationwide adversely impacted under economy, SBA proposes to increase size increase size standards for 45 industries, the COVID–19. On April 24, 2020, standards for 45 industries, and retain and retain the current size standards for additional funding for the CARES Act, the current size standards for 81 the remaining 81 industries. including for the PPP, was provided. industries even though analytical results The Agency is following closely the suggest that 69 of those 81 size Special Considerations development of the pandemic and the standards could be lowered. On March 13, 2020, the ongoing economic situation and recovery. The The proposed size standards are Coronavirus Disease 2019 (COVID–19) consequence of the initial response of presented in Table 11, Proposed Size was declared a pandemic of enough the public to the COVID–19 pandemic Standards Revisions. Also presented in severity and magnitude to warrant an as well as the different measures taken Table 11 are current and calculated size emergency declaration for all states, by the Government to contain it (e.g. standards for comparison.

3 Board of Governors of the Federal Reserve and U.S. Census Bureau, Small Busines Pulse information on participation in small business- System (June 2020), Monetary Policy Report, p. 24 Survey (https://portal.census.gov/pulse/data). The specific initiatives such as the Paycheck Protection (see https://www.federalreserve.gov/ latest is a recent survey created by the Census Program. monetarypolicy/files/20200612_mprfullreport.pdf) Bureau to provide high-frequency, detailed

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TABLE 11—PROPOSED SIZE STANDARDS REVISIONS

Calculated size Proposed size Current size NAICS codes NAICS U.S. industry title standard standard standard ($ million) ($ million) ($ million)

481219 ...... Other Nonscheduled Air Transportation ...... $22.0 $22.0 $16.5 484110 ...... General Freight Trucking, Local ...... 9.0 30.0 30.0 484121 ...... General Freight Trucking, Long-Distance, Truckload .. 22.0 30.0 30.0 484122 ...... General Freight Trucking, Long-Distance, Less Than 38.0 38.0 30.0 Truckload. 484210 ...... Used Household and Office Goods Moving ...... 21.0 30.0 30.0 484220 ...... Specialized Freight (except Used Goods) Trucking, 15.0 30.0 30.0 Local. 484230 ...... Specialized Freight (except Used Goods) Trucking, 22.0 30.0 30.0 Long-Distance. 485111 ...... Mixed Mode Transit Systems ...... 25.5 25.5 16.5 485112 ...... Commuter Rail Systems ...... 41.5 41.5 16.5 485113 ...... Bus and Other Motor Vehicle Transit Systems ...... 28.5 28.5 16.5 485119 ...... Other Urban Transit Systems ...... 33.0 33.0 16.5 485210 ...... Interurban and Rural Bus Transportation ...... 28.0 28.0 16.5 485310 ...... Taxi Service ...... 13.0 16.5 16.5 485320 ...... Limousine Service ...... 12.5 16.5 16.5 485410 ...... School and Employee Bus Transportation ...... 26.5 26.5 16.5 485510 ...... Charter Bus Industry ...... 13.0 16.5 16.5 485991 ...... Special Needs Transportation ...... 13.0 16.5 16.5 485999 ...... All Other Transit and Ground Passenger Transpor- 16.0 16.5 16.5 tation. 486210 ...... Pipeline Transportation of Natural Gas ...... 36.5 36.5 30.0 486990 ...... All Other Pipeline Transportation ...... 31.5 40.5 40.5 487110 ...... Scenic and Sightseeing Transportation, Land ...... 18.0 18.0 8.0 487210 ...... Scenic and Sightseeing Transportation, Water ...... 12.5 12.5 8.0 487990 ...... Scenic and Sightseeing Transportation, Other ...... 22.0 22.0 8.0 488111 ...... Air Traffic Control ...... 30.5 35.0 35.0 488119 ...... Other Airport Operations ...... 25.5 35.0 35.0 488190 ...... Other Support Activities for Air Transportation ...... 27.5 35.0 35.0 488210 ...... Support Activities for Rail Transportation ...... 30.0 30.0 16.5 488310 ...... Port and Harbor Operations ...... 38.0 41.5 41.5 488320 ...... Marine Cargo Handling ...... 39.0 41.5 41.5 488330 ...... Navigational Services to Shipping ...... 26.5 41.5 41.5 488390 ...... Other Support Activities for Water Transportation ...... 23.5 41.5 41.5 488410 ...... Motor Vehicle Towing ...... 7.0 8.0 8.0 488490 ...... Other Support Activities for Road Transportation ...... 16.0 16.0 8.0 488510 ...... Freight Transportation Arrangement ...... 17.5 17.5 16.5 488991 ...... Packing and Crating ...... 17.5 30.0 30.0 488999 ...... All Other Support Activities for Transportation ...... 22.0 22.0 8.0 491110 ...... Postal Services ...... 8.0 8.0 8.0 492210 ...... Local Messengers and Local Delivery ...... 10.5 30.0 30.0 493110 ...... General Warehousing and Storage ...... 25.0 30.0 30.0 493120 ...... Refrigerated Warehousing and Storage ...... 32.0 32.0 30.0 493130 ...... Farm Product Warehousing and Storage ...... 13.5 30.0 30.0 493190 ...... Other Warehousing and Storage ...... 32.0 32.0 30.0 511210 ...... Software Publishers ...... 40.0 41.5 41.5 512110 ...... Motion Picture and Video Production ...... 33.0 35.0 35.0 512120 ...... Motion Picture and Video Distribution ...... 26.0 34.5 34.5 512131 ...... Motion Picture Theaters (except Drive-Ins) ...... 39.5 41.5 41.5 512132 ...... Drive-In Motion Picture Theaters ...... 11.0 11.0 8.0 512191 ...... Teleproduction and Other Postproduction Services .... 19.5 34.5 34.5 512199 ...... Other Motion Picture and Video Industries ...... 25.0 25.0 22.0 512240 ...... Sound Recording Studios ...... 9.5 9.5 8.0 512290 ...... Other Sound Recording Industries ...... 20.0 20.0 12.0 515111 ...... Radio Networks ...... 41.5 41.5 35.0 515112 ...... Radio Stations ...... 36.0 41.5 41.5 515120 ...... Television Broadcasting ...... 41.5 41.5 41.5 515210 ...... Cable and Other Subscription Programming ...... 41.5 41.5 41.5 517410 ...... Satellite Telecommunications ...... 38.5 38.5 35.0 517919 ...... All Other Telecommunications ...... 33.0 35.0 35.0 518210 ...... Data Processing, Hosting, and Related Services ...... 33.0 35.0 35.0 519110 ...... News Syndicates ...... 32.0 32.0 30.0 519120 ...... Libraries and Archives ...... 18.5 18.5 16.5 519190 ...... All Other Information Services ...... 26.5 30.0 30.0 522110 ...... Commercial Banking ...... 750 million in assets 750 million in assets 600 million in assets 522120 ...... Savings Institutions ...... 750 million in assets 750 million in assets 600 million in assets 522130 ...... Credit Unions ...... 750 million in assets 750 million in assets 600 million in assets 522190 ...... Other Depository Credit Intermediation ...... 750 million in assets 750 million in assets 600 million in assets 522210 ...... Credit Card Issuing ...... 750 million in assets 750 million in assets 600 million in assets

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TABLE 11—PROPOSED SIZE STANDARDS REVISIONS—Continued

Calculated size Proposed size Current size NAICS codes NAICS U.S. industry title standard standard standard ($ million) ($ million) ($ million)

522220 ...... Sales Financing ...... 38.0 41.5 41.5 522291 ...... Consumer Lending ...... 41.5 41.5 41.5 522292 ...... Real Estate Credit ...... 40.0 41.5 41.5 522293 ...... International Trade Financing ...... 31.0 41.5 41.5 522294 ...... Secondary Market Financing ...... 41.5 41.5 41.5 522298 ...... All Other Nondepository Credit Intermediation ...... 35.5 41.5 41.5 522310 ...... Mortgage and Nonmortgage Loan Brokers ...... 13.0 13.0 8.0 522320 ...... Financial Transactions Processing, Reserve, and 39.5 41.5 41.5 Clearinghouse Activities. 522390 ...... Other Activities Related to Credit Intermediation ...... 25.0 25.0 22.0 523110 ...... Investment Banking and Securities Dealing ...... 41.0 41.5 41.5 523120 ...... Securities Brokerage ...... 37.0 41.5 41.5 523130 ...... Commodity Contracts Dealing ...... 32.5 41.5 41.5 523140 ...... Commodity Contracts Brokerage ...... 26.5 41.5 41.5 523210 ...... Securities and Commodity Exchanges ...... 33.0 41.5 41.5 523910 ...... Miscellaneous Intermediation ...... 27.0 41.5 41.5 523920 ...... Portfolio Management ...... 35.5 41.5 41.5 523930 ...... Investment Advice ...... 27.5 41.5 41.5 523991 ...... Trust, Fiduciary, and Custody Activities ...... 41.5 41.5 41.5 523999 ...... Miscellaneous Financial Investment Activities ...... 41.5 41.5 41.5 524113 ...... Direct Life Insurance Carriers ...... 37.5 41.5 41.5 524114 ...... Direct Health and Medical Insurance Carriers ...... 38.5 41.5 41.5 524127 ...... Direct Title Insurance Carriers ...... 41.5 41.5 41.5 524128 ...... Other Direct Insurance (except Life, Health, and Med- 39.0 41.5 41.5 ical) Carriers. 524130 ...... Reinsurance Carriers ...... 39.5 41.5 41.5 524210 ...... Insurance Agencies and Brokerages ...... 13.0 13.0 8.0 524291 ...... Claims Adjusting ...... 18.0 22.0 22.0 524292 ...... Third Party Administration of Insurance and Pension 40.0 40.0 35.0 Funds. 524298 ...... All Other Insurance Related Activities ...... 27.0 27.0 16.5 525110 ...... Pension Funds ...... 32.5 35.00 35.0 525120 ...... Health and Welfare Funds ...... 32.5 35.0 35.0 525190 ...... Other Insurance Funds ...... 32.5.0 35.0 35.0 525910 ...... Open-End Investment Funds ...... 31.5 35.0 35.0 525920 ...... Trusts, Estates, and Agency Accounts ...... 32.5.0 35.0 35.0 525990 ...... Other Financial Vehicles ...... 32.5 35.0 35.0 531110 ...... Lessors of Residential Buildings and Dwellings ...... 23.5 30.0 30.0 531120 ...... Lessors of Nonresidential Buildings (except 28.0 30.0 30.0 Miniwarehouses). 531130 ...... Lessors of Miniwarehouses and Self-Storage Units .... 20.5 30.0 30.0 531190 ...... Lessors of Other Real Estate Property ...... 16.0 30.0 30.0 531210 ...... Offices of Real Estate Agents and Brokers ...... 13.0 13.0 8.0 531311 ...... Residential Property Managers ...... 11.0 11.0 8.0 531312 ...... Nonresidential Property Managers ...... 17.0 17.0 8.0 531320 ...... Offices of Real Estate Appraisers ...... 8.5 8.5 8.0 531390 ...... Other Activities Related to Real Estate ...... 17.0 17.0 8.0 532111 ...... Passenger Car Rental ...... 41.5 41.5 41.5 532112 ...... Passenger Car Leasing ...... 41.0 41.5 41.5 532120 ...... Truck, Utility Trailer, and RV (Recreational Vehicle) 41.5 41.5 41.5 Rental and Leasing. 532210 ...... Consumer Electronics and Appliances Rental ...... 40.5 41.5 41.5 532281 ...... Formal Wear and Costume Rental ...... 12.5 22.0 22.0 532282 ...... Video Tape and Disc Rental ...... 31.0 31.0 30.0 532283 ...... Home Health Equipment Rental ...... 36.0 36.0 35.0 532284 ...... Recreational Goods Rental ...... 7.5 8.0 8.0 532289 ...... All Other Consumer Goods Rental ...... 11.0 11.0 8.0 532310 ...... General Rental Centers ...... 7.5 8.0 8.0 532411 ...... Commercial Air, Rail, and Water Transportation 40.0 40.0 35.0 Equipment Rental and Leasing. 532412 ...... Construction, Mining, and Forestry Machinery and 34.0 35.0 35.0 Equipment Rental and Leasing. 532420 ...... Office Machinery and Equipment Rental and Leasing 32.5 35.0 35.0 532490 ...... Other Commercial and Industrial Machinery and 30.0 35.0 35.0 Equipment Rental and Leasing. 533110 ...... Lessors of Nonfinancial Intangible Assets (except 35.0 41.5 41.5 Copyrighted Works).

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Table 12, Summary of Proposed Size size standards in Table 11 (above) by Standards Revisions by Sector, below, NAICS sector. summarizes the proposed changes to

TABLE 12—SUMMARY OF PROPOSED SIZE STANDARDS REVISIONS BY SECTOR

Size Size Size NAICS Sector Sector name standards standards standards increased lowered maintained

48–49 ...... Transportation and Warehousing (1) ...... 18 0 25 51 ...... Information ...... 8 0 11 52* ...... Finance and Insurance (2) ...... 10 0 29 53 ...... Real Estate and Rental and Leasing (3) ...... 9 0 16

All Sectors (3) ...... 45 0 81

Evaluation of Dominance in Field of results. The alternative option two was the Regulatory Impact Analysis shows Operation to retain all current size standards. that retaining all size standards at their The first option would cause a current levels is more onerous for the SBA has determined that for the substantial number of currently small small businesses than the option of industries which it has evaluated in this businesses to lose their small business adopting increases of size standards and proposed rule, no individual firm at or status and hence to lose their access to retaining the rest. SBA may reevaluate below the proposed size standard would Federal small business assistance, this approach as the current economic be large enough to dominate its field of especially small business set-aside situation evolves. operation. At the proposed size contracts and SBA’s financial assistance standards levels, if adopted, the small in some cases. During the first 5-year Request for Comments business share of total industry receipts review of size standards, some SBA invites public comments on this among those industries was, on average, commenters had expressed concerns proposed rule, especially on the 1.9 percent, varying from 0.01 percent to about the SBA’s policy of not lowering following issues: 33.3 percent. Also, at the proposed size standards based on the analytical 1. SBA seeks feedback on whether asset-based size standards levels, banks results. SBA’s proposal to increase 45 size and thrifts have a share of 0.004 percent, As part of the option one, SBA standards and retain 81 size standards is with the minority institutions having a considered but is not proposing to appropriate given the results from the share of 0.32 percent. Credit unions increase 45 size standards as suggested latest available industry and Federal have a market share of 0.05 percent. by analytical results and mitigate the contracting data of each industry and These market shares effectively impact of the decreases to size subindustry (exception) reviewed in this preclude a firm at or below the standards, by adjusting the calculated proposed rule, along with ongoing proposed size standards from exerting sizes considering the impact on small uncertainty and dramatic contraction in control on any of the industries. business access to Federal contracting economic activity due to the global Alternatives Considered and SBA loans. However, in the present COVID–19 pandemic. SBA also seeks situation with the global COVID–19 suggestions, along with supporting facts By law, SBA is required to develop pandemic resulting in high levels of risk and analysis, for alternative standards, if numerical size standards for and dramatic reductions in economic they would be more appropriate than establishing eligibility for Federal small activity of unprecedented nature, SBA the proposed size standards. business assistance programs and to presents only the impacts of adopting 2. SBA also seeks comments on review every five years all size the analytical results without whether SBA should not lower any size standards and make necessary adjustment in alternative option one. standards in view of COVID–19 adjustments to reflect the current SBA will adopt this approach pandemic and its adverse impacts on industry structure and Federal market temporarily and may reevaluate this small businesses as well as on the conditions. Other than varying the approach as the economic situation overall economic situation when levels of size standards by industry and evolves. analytical results suggest some size changing the measures of size standards Under the second option, given the standards could be lowered. SBA (e.g., using annual receipts vs. the current COVID–19 pandemic, SBA believes that lowering size standards number of employees), no practical considered retaining the current level of under the current economic alternatives exist to the systems of all size standards even though the environment would run counter to what numerical size standards. current analysis may suggest changing Congress and Federal government are The proposal is to increase size them. SBA considers that the option of doing to aid and provide relief to the standards where the data suggested retaining all size standards at this nation’s small businesses impacted by increases are warranted, and to retain, moment provides the opportunity to the COVID–19 pandemic. in response to the COVID–19 national reassess the economic situation once the 3. Given the uncertainty produced by emergency and resultant economic economic recovery starts. Under this the global COVID–19 pandemic and the impacts on small businesses, all current option, as the current situation economic consequences, SBA would size standards where the data suggested develops, SBA will be able to assess like to receive comments from the lowering is appropriate. new data available on economic public on the possibility of lowering Nonetheless, SBA also considered two indicators, federal procurement, and size standards while mitigating the other alternatives. The alternative SBA loans as well, before adopting consequences of the lower standards. option one was to propose changes changes to size standards. However, 4. Given the lack of industry data at exactly as suggested by the analytical SBA is not adopting option two because the sub-industry level, SBA has

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proposed to leave the size standard for 7. Similarly, SBA proposes a $750 Compliance With Executive Orders Non-Vessel Owning Common Carriers million common assets-based size 12866 and 13771, the Regulatory and Household Good Forwarders standard for four industries within Flexibility Act (5 U.S.C. 601–612), (‘‘exception’’ under NAICS 488510) at NAICS Industry Group 5221, Depository Executive Orders 13563, 12988, and its current level. SBA invites comments, Credit Intermediation (i.e., NAICS 13132, and the Paperwork Reduction along with supporting information, on 522110, 522120, 522130, and 522190) Act (44 U.S.C. Ch. 35) this proposal. Alternatively, in view of and on industry in NAICS 5222. Executive Order 12866 insignificant Government contracting, Nondepository Credit Intermediation The Office of Management and Budget SBA also welcomes comments on (i.e., NAICS 522210). SBA invites whether it should continue to have a (OMB) has determined that this comments or suggestions along with higher size standard for Non-Vessel proposed rule is a significant regulatory supporting information with respect to Owning Common Carriers and action for purposes of Executive Order Household Good Forwarders as an whether SBA should adopt common 12866. Accordingly, in the next section ‘‘exception’’ under NAICS 488510 or size standards for those industries or SBA provides a Regulatory Impact should it apply the same $17.5 million establish a separate size standard for Analysis of this proposed rule, proposed size standard for the overall each industry. including: (1) A statement of the need industry. Finally, given the lack of 8. In calculating the overall industry for the proposed action, (2) an industry data at the sub-industry level size standard, SBA has assigned equal examination of alternative approaches, to accurately evaluate the size standard, weight to each of the five primary and (3) an evaluation of the benefits and SBA seeks comments on whether it factors in all industries and costs—both quantitative and qualitative—of the proposed action and should eliminate the exception and subindustries covered by this proposed the alternatives considered. However, apply the overall size standard for rule. SBA seeks feedback on whether it this rule is not a ‘‘major rule’’ under the NAICS 488510. should assign equal weight to each 5. Because of the lack of data to Congressional Review Act, 5 U.S.C. 800. factor or on whether it should give more review the industry structure, SBA has weight to one or more factors for certain Regulatory Impact Analysis proposed to leave the size standard for Postal Service (NAICS 491110) at the industries or subindustries. 1. What is a need for this regulatory current level of $8 million in average Recommendations to weigh some action? annual revenue. SBA invites comments factors differently than others should Under the Small Business Act (Act) on this proposal as well as suggestions, include suggested weights for each (15 U.S.C. 632(a)), SBA’s Administrator along with supporting information, if a factor along with supporting facts and is responsible for establishing small different size standard is more analysis. business size definitions (or ‘‘size standards’’) and ensuring that such appropriate. 9. Finally, SBA seeks comments on definitions vary from industry to 6. As noted earlier, the 2012 data sources it used to examine industry industry to reflect differences among Economic Census special tabulation and Federal market conditions, as well includes data only for two NAICS codes various industries. The Jobs Act requires as suggestions on relevant alternative SBA to review every five years all size within NAICS Subsector 525: NAICS data sources that the Agency should 525910, Open-End Investment Funds, standards and make necessary evaluate in reviewing or modifying size and NAICS 525990, Other Financial adjustments to reflect current industry standards for industries covered by this Vehicles. Because all industries in that and Federal market conditions. This Subsector currently share the same proposed rule. proposed rule is part of the second 5- $35.0 million receipts based size Public comments on the above issues year review of size standards in standard, SBA applies the results based are very valuable to SBA for validating accordance with the Jobs Act. The first on data for NAICS 525910 and 525990, its proposed size standards revisions in 5-year review of size standards was as shown in Table 4 (above), to all this proposed rule. Commenters completed in early 2016. Such periodic remaining industries within this addressing size standards for a specific reviews of size standards provide SBA Subsector, obtaining a common size industry or a group of industries should with an opportunity to incorporate standard of $32.5 million. While the include relevant data and/or other ongoing changes to industry structure reduced size standard represents a slight information supporting their comments. and Federal market environment into decrease from the current $35.0 million If comments relate to the application of size standards and to evaluate the level, SBA decided to retain the current size standards for Federal procurement impacts of prior revisions to size standards on small businesses. This also size standards, although this would programs, SBA suggests that have virtually no impacts on the provides SBA with an opportunity to commenters provide information on the number of small firms nor on the seek and incorporate public input to the size of contracts in their industries, the amount of Federal contract dollars size standards review and analysis. SBA size of businesses that can undertake the awarded to small firms under the believes that proposed size standards current size standards. SBA invites contracts, start-up costs, equipment and revisions for industries being reviewed comments or suggestions along with other asset requirements, the amount of in this rule will make size standards supporting information with respect to subcontracting, other direct and indirect more reflective of the current economic the following: costs associated with the contracts, the characteristics of businesses in those a. Whether SBA should adopt use of mandatory sources of supply for industries and the latest trends in common size standards for those products and services, and the degree to Federal marketplace. industries or establish a separate size which contractors can mark up those SBA’s mission is to aid and assist standard for each industry, and costs. small businesses through a variety of b. Whether the reduced common size financial, procurement, business standards for those industries are at the development and counseling, and correct levels or what would be more disaster assistance programs. To appropriate if what SBA has proposed determine the actual intended are not appropriate. beneficiaries of these programs, SBA

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establishes numerical size standards by impact of size standards changes on sectors, of $19.5 billion in total average industry to identify businesses that are small businesses and significant adverse annual contract dollars awarded to deemed small. impacts of the COVID–19 emergency on businesses during that period, 21.2 The proposed revisions to the existing small businesses and the overall percent went to small businesses. From size standards for 126 industries in economic activity, of the total of 126 the total small business contract dollars NAICS Sectors 48–49, 51, 52 and 53 are industries and exceptions in Sectors 48– awarded during the period considered, consistent with SBA’s statutory 49, 51, 52 and 53 that have monetary- 45.5 percent were awarded through mandates to help small businesses grow based size standards, SBA proposes to various small business set-aside and create jobs and to review and adjust increase size standards for 45 industries, programs and 54.5 percent were size standards every five years. This and maintain current size standards for awarded through non-set aside regulatory action promotes the remaining 79 industries and 2 contracts. Based on the FDIC and NCUA Administration’s goals and objectives as exceptions. data respectively, from a total of well as meets the SBA’s statutory $18,034.4 billion in assets, 4.6 percent The Baseline responsibility. One of SBA’s goals in are owned by small depository support of promoting the For purposes of this regulatory action, institutions. With respect to Credit Administration’s objectives is to help the baseline represents maintaining the Unions, from a total of $1,470.8 billion small businesses succeed through fair ‘‘status quo,’’ i.e., making no changes to in assets, 25.7 percent are owned by and equitable access to capital and the current size standards. Using the small credit unions. credit, Federal Government contracts number of small businesses and levels Based on the SBA’s internal data on and purchases, and management and of benefits (such as set-aside contracts, its loan programs for fiscal years 2016– technical assistance. Reviewing and SBA’s loans, disaster assistance, etc.) 2018, small businesses in those modifying size standards, when they receive under the current size industries received, on an annual basis, appropriate, ensures that intended standards as a baseline, one can a total of nearly 7,232 7(a) and 504 loans beneficiaries are able to access Federal examine the potential benefits, costs in that period, totaling about $2.7 small business programs that are and transfer impacts of proposed billion, of which 84.6 percent was designed to assist them to become changes to size standards on small issued through the 7(a) program and competitive and create jobs. businesses and on the overall economy. 15.4 percent was issued through the 2. What are the potential benefits and Based on the 2012 Economic Census 504/CDC program. During fiscal years costs of this regulatory action? (the latest available), of a total of about 2016–2018, small businesses in those OMB directs agencies to establish an 700,544 businesses in industries in industries also received 2,544 loans appropriate baseline to evaluate any Sectors 48–49, 51, 52 (excluding assets- through the SBA’s Economic Injury benefits, costs, or transfer impacts of based size standards), and 53 for which Disaster Loan (EIDL) program, totaling regulatory actions and alternative SBA evaluated their current receipt about $208.6 million on an annual basis. approaches considered. The baseline based size standards, 97.2 percent are Table 13, Baseline for All Industries, should represent the agency’s best considered small under the current size below, provides these baseline results assessment of what the world would standards. That percentage varies from by sector, for receipts-based size look like absent the regulatory action. 95.8 percent in Sector 51 to 97.9 percent standards industries and assets-based For a new regulatory action in Sector 53. Additionally, based on the size standards industries. promulgating modifications to an data from FDIC and National Credit Increases to Size Standards existing regulation (such as modifying Union Administration (NCUA), from a the existing size standards), a baseline total of about 5,415 depository As stated above, of 126 monetary assuming no change to the regulation institutions. 77.3 percent corresponds to based size standards in Sectors 48–49, (i.e., making no changes to current size small depository institutions, and from 51, 52, and 53 that are reviewed in this standards) generally provides an a total of 5,492 credit unions, 91.2 rule, based on the results from analyses appropriate benchmark for evaluating percent are small under the current of latest industry and Federal market benefits, costs, or transfer impacts of assets-based size standards. Based on data as well as impacts of size standards proposed regulatory changes and their the data from FPDS–NG for fiscal years changes on small businesses, in this alternatives. 2016–2018, about 13,964 unique firms rule, SBA proposes to increase 45 size in those industries with receipts-based standards, of which 40 are receipts- Proposed Changes to Size Standards size standards received at least one based and five assets-based. Below are Based on the results from analyses of Federal contract during that period, of descriptions of the benefits, costs, and latest industry and Federal contracting which 76.8 percent were small under transfer impacts of these proposed data, as well as consideration of the the current size standards. For these increases to size standards.

TABLE 13—BASELINE FOR ALL INDUSTRIES

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

Baseline All Industries (current size standards) ...... 43 19 39 25 126 Total firms (Economic Census) ...... 162,147 45,821 220,860 271,716 700,544 Total small firms under current size standards (Eco- nomic Census) ...... 156,173 43,915 214,790 265,977 680,855 Small firms as % of total firms ...... 96.3% 95.8% 97.3% 97.9% 97.2% Total contract dollars ($ million) (FPDS–NG FY2016– 2018) ...... $8,190.0 $7,210.6 $2,997.6 $1,256.8 $22,522.6 Total small business contract dollars under current standards ($ million) (FPDS–NG FY2016–2018) ...... $1238.0 $1861.9 $382.0 $668.6 $4,530.5 Small business dollars as % of total dollars (FPDS–NG FY2016–2018) ...... 15.1% 25.8% 12.2% 53.2% 20.1%

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TABLE 13—BASELINE FOR ALL INDUSTRIES—Continued

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

Total No. of unique firms getting contracts (FPDS–NG FY2016–2018) ...... 4,017 5,634 572 4,276 14,005 Total No. of unique small firms getting small business contracts (FPDS–NG FY2016–2018) ...... 3,117 4,058 309 3,432 10,691 Small business firms as % of total firms ...... 77.5% 72.0% 54.04% 80.3 76.3% No. of 7(a) and 504/CDC loans (FY 2016–2018) ...... 3,662 524 1,280 1,766 7,232 Amount of 7(a) and 504 loans ($ million) (FY 2016– 2018) ...... $828.5 $210.5 $519.6 $1,135.6 $2,694.2 No. of EIDL loans (FY 2016–2018) ...... 186 31 71 2,256 2,544 Amount of EIDL loans ($million) (FY 2016–2018) ...... $12.5 $3.3 $3.6 $189.2 $208.6 Total Number of Depository Institutions (FDIC, SDI) (2018) ...... 5,415 ...... Number of Small Depository Institutions (FDIC, SDI) (2018) ...... 4,188 ...... Small firms as % of total Depository Institutions (2018) ...... 77.3% ...... Total Assets of Depository Institutions ($ million) (FDIC, SDI) (2018) ...... $18,034,370.50 ...... Total Assets of Small Depository Institutions ($ million) (FDIC, SDI) (2018) ...... $837,835.6 ...... SB Assets as % of Total Assets ...... 4.6% ...... Total Number of Credit Unions (NCUA) (2018) ...... 5,492 ...... Number of small Credit Unions (NCUA) (2018) ...... 5,010 ...... Small firms as % of total Depository Institutions ...... 91.2% ...... Total Assets of Credit Unions ($ million) (NCUA) (2018) ...... $1,470,838.7 ...... Total Assets of Small Credit Unions ($ million) (NCUA) (2018) ...... $377,619.2 ...... SB Assets as % of Total Assets of Credit Unions ...... 25.67% ......

Benefits of Increases to Size Standards to increase receipts-based size the proposed increases to size The most significant benefit to standards, more than 1,790 firms (see standards, if adopted, could receive businesses from proposed increases to Table 13 above), not small under the Federal small business contracts totaling size standards is gaining eligibility for current size standards, will become about $30.0 million annually. That Federal small business assistance small under the proposed size standards represents a 3.4 percent increase to programs or retaining that eligibility for increases and therefore become eligible small business dollars from the sector a longer period. These include SBA’s for these programs. That represents baseline. business loan programs, EIDL program, about 0.5 percent of all firms classified Based on the FDIC data for fiscal year and Federal procurement programs as small under the current size 2018, SBA estimates that about 200 intended for small businesses. Federal standards in industries for which SBA depository institutions would gain small procurement programs provide targeted, has proposed increasing size standards. institutions status under the proposed set-aside opportunities for small If adopted, proposed size standards increases to size standards with an businesses under the SBA’s various would result in an increase to the small additional $132.4 billion or 15.8 percent business development and contracting business share of total receipts in those increase in small depository programs, such as 8(a)/BD (business industries from 29.9 percent to 32.7 institutions’ assets. Also, based on the development), small disadvantaged percent. NCUA data for fiscal year 2018, SBA businesses (SDB), small businesses With more businesses qualifying as estimates that about 85 credit unions located in Historically Underutilized small under the proposed increases to would gain small business status under Business Zones (HUBZone), women- size standards, Federal agencies will the proposed increases to size owned small businesses (WOSB), have a larger pool of small businesses standards, with an additional $56 economically disadvantaged women- from which to draw for their small billion in assets or 14.9 percent increase owned small businesses (EDWOSB), and business procurement programs. for small credit unions. service-disabled veteran-owned small Growing small businesses that are close The added competition from more businesses (SDVOSB). to exceeding the current size standards businesses qualifying as small can result Besides set-aside contracting and will be able to retain their small in lower prices to the government for financial assistance discussed above, business status for a longer period under procurements set aside or reserved for small businesses also benefit through the higher size standards, thereby small businesses, but SBA cannot reduced fees, less paperwork, and fewer enabling them to continue to benefit quantify this impact. Costs could be compliance requirements that are from the small business programs. higher when full and open contracts are available to small businesses through Based on the FPDS-NG data for fiscal awarded to HUBZone businesses that Federal government. However, SBA has years 2016–2018, SBA estimates that receive price evaluation preferences. no data to estimate the number of small about 60–65 firms that are active in However, with agencies likely setting businesses receiving such benefits. Federal contracting in those industries aside more contracts for small Based on the 2012 Economic Census would gain small business status under businesses in response to the (latest available SBA estimates that in the proposed size standards. Based on availability of a larger pool of small 40 industries in NAICS Sectors 48–49, the same data, SBA estimates that those businesses under the proposed increases 51, 52, and 53 for which it has proposed newly qualified small businesses under to size standards, HUBZone firms might

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actually end up getting more set-aside about 14 7(a) and 504 loans totaling an annual basis, the newly defined contracts and fewer full and open about $5.7 million could be made to small businesses under the proposed contracts, thereby resulting in some cost these newly qualified small businesses increases to size standards, if adopted, savings to agencies. While SBA cannot in those industries under the proposed could receive 5 EIDL loans, totaling estimate such costs savings as it is size standards. That represents a 0.2 about $0.4 million. Additionally, the impossible to determine the number and percent increase to the loan amount newly defined small businesses would value of unrestricted contracts to be compared to the Group baseline. also benefit through reduced fees, less otherwise awarded to HUBZone firms Newly qualified small businesses will paperwork, and fewer compliance also benefit from the SBA’s EIDL will be awarded as set-asides, such cost requirements that are available to small savings are likely to be relatively small program. Since the benefit provided businesses through the Federal as only a small fraction of full and open through this program is contingent on government, but SBA has no data to contracts are awarded to HUBZone the occurrence and severity of a disaster businesses. in the future, SBA cannot make a quantify this impact. Table 14, Impacts Under SBA’s 7(a) and 504 loan meaningful estimate of this impact. of Proposed Increases to Size Standards, programs, based on the data for fiscal However, based on the historical trends provides these results by NAICS sector. years 2016–2018, SBA estimates up to of the EIDL data, SBA estimates that, on

TABLE 14—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

No. of industries with proposed increases to size standards 18 8 10 9 45 Total current small businesses in industries with proposed increases to size standards (Economic Census 2012) ..... 27,255 5,368 135,774 150,404 318,800 Additional firms qualifying as small under proposed stand- ards (2012 Economic Census) ...... 184 13 623 970 1,790 Percentage of additional firms qualifying as small relative to current small businesses in industries with proposed in- creases to size standards ...... 0.7% 0.2% 0.5% 0.6% 0.6% No. of current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS–NG FY2016–2018) 1 ...... 520 334 101 1,605 2,553 Additional small business firms getting small business sta- tus (FPDS–NG FY2016–2018) ...... 32 4 7 21 63 % increase to small businesses relative to current unique small firms getting small business contracts in industries with proposed increases to size standards (FPDS–NG FY2016–2018) 1 ...... 6.2% 1.2% 6.9% 1.3% 2.5% Total small business contract dollars under current stand- ards in industries with proposed increases to size stand- ards ($ million) (FPDS–NG FY2016–2018) ...... $238.5 $149.6 $160.8 $330.8 $879.7 Estimated additional small business dollars available to newly qualified small firms (Using avg dollars obligated to SBs) ($ million) (FPDS–NG FY 2016–2018) 1 ...... $7.0 $2.0 $6.1 $15.0 $30.1 % increase to small business dollars relative to total small business contract dollars under current standards in in- dustries with proposed increases to size standards ...... 2.9% 1.3% 3.8% 4.5% 3.4% Total no. of 7(a) and 504 loans to small business in indus- tries with proposed increases to size standards (FY 2016–2018) ...... 412 58 726 745 1,941 Total amount of 7(a) and 504 loans to small businesses in industries with proposed increases to size standards ($ million) (FY 2016–2018) ...... $160.6 $22.5 $246.0 $230.8 $659.9 Estimated no. of 7(a) and 504 loans to newly qualified small firms...... 4 1 4 5 14 Estimated 7(a) and 504 loan amounts to newly qualified small firms ($ million) ...... $2.4 $0.4 $1.4 $1.5 $5.7 % increase to 7(a) and 504 loan amounts relative to the total amount of 7(a) and 504 loans in industries with pro- posed increases to size standards ...... 0.3% 0.2% 0.3% 0.1% 0.2% Total no. of EIDL loans to small businesses in industries with proposed increases to size standards (FY 2016– 2018) ...... 57 9 0 127 193 Total amount of EIDL loans to small businesses in indus- tries with proposed increases to size standards ($ million) (FY 2016–2018) ...... $4.9 $0.4 $2.2 $11.8 $19.3 Estimated no. of EIDL loans to newly qualified small firms .. 2 1 1 1 5 Estimated EIDL loan amount to newly qualified small firms ($ million) ...... $0.20 $0.04 $0.05 $0.09 $0.4 % increase to EIDL loan amount relative to the total amount of EIDL loans in industries with proposed in- creases to size standards ...... 1.6% 1.2% 1.4% 0.0% 0.2% Total current small businesses in industries with Proposed increases to size standards (FDIC) (2018) ...... 4,188 ......

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TABLE 14—IMPACTS OF PROPOSED INCREASES TO SIZE STANDARDS—Continued

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

Additional firms qualifying as small under proposed stand- ards (FDIC) ...... 198 ...... % Increase small institutions with proposed increases to size standards ...... 4.7% ...... Total Assets of Small Depository Institutions ($ million) (FDIC, SDI) (2018) ...... $837,835.6 Estimated increase in total assets of Small Depository Insti- tutions ($ million) ...... $132,439.9 % increase in total assets of small depository institutions .... 15.8% Number of small Credit Unions (NCUA) (2018) ...... 5,010 Additional small Credit Unions (NCUA) ...... 84 % Increase small institutions with proposed increases to size standards ...... 1.7% Total Assets of small Credit Unions ($ million) (NCUA) (2018) ...... $377,619.2 Estimated increase in total assets of small Credit Unions ($ million) ...... $56,326.8 % increase in total assets of small Credit Unions ...... 14.9% 1 Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. Numbers of firms are calculated using the SBA current size standard, not the CO Size Std-These calculations do not include assets-based industries. 2 Total impact represents total unique number of firms impacted to avoid double counting as some firms are participating in more than one in- dustry. These calculations do not include assets-based industries.

Costs of Increases to Size Standards SBA’s 8(a)/BD and all small business small due to the proposed increases to mentor-prote´ge´ programs. With an size standards, Federal agencies may Besides having to register in SAM to expanded pool of small businesses, it is choose to set aside more contracts for be able to participate in Federal likely that Federal agencies would set competition among small businesses contracting and update the SAM profile aside more contracts for small only instead of using a full and open annually, small businesses incur no businesses under the proposed increases competition. The movement of contracts direct costs to gain or retain their small to size standards. One may surmise that from unrestricted competition to small business status as a result of increases this might result in a higher number of business set-aside contracts might result to size standards. All businesses willing small business size protests and in competition among fewer total to do business with Federal government additional processing costs to agencies. bidders, although there will be more have to register in SAM and update However, the SBA’s historical data on small businesses eligible to submit their SAM profiles annually, regardless size protests shows that the number of offers under the proposed size of their size status. SBA believes that a size protests decreased following the standards. However, the additional costs vast majority of businesses that are increases to receipts-based size associated with fewer bidders are willing to participate in Federal standards as part of the first 5-year expected to be minor since, by law, contracting are already registered in review of size standards. Specifically, procurements may be set aside for small SAM and update their SAM profiles on an annual basis, the number of size businesses under the 8(a)/BD, SDB, annually. More importantly, this protests fell from about 600 during fiscal HUBZone, WOSB, EDWOSB, or proposed rule does not establish the years 2011–2013 (review of most SDVOSB programs only if awards are new size standards for the very first receipts-based size standards was expected to be made at fair and time; rather it just intends to modify the completed by the end of FY 2013), as reasonable prices. existing size standards in accordance compared to about 500 during fiscal Costs may also be higher when full with a statutory requirement and the years 2014–2016 when size standards and open contracts are awarded to latest data and other relevant factors. increases were in effect. That represents HUBZone businesses that receive price To the extent that the newly qualified a 17 percent decline. Among those evaluation preferences. However, with small businesses (not depository newly defined small businesses seeking agencies likely setting aside more institutions or credit unions) could SBA’s loans, there could be some contracts for small businesses in become active in Federal procurement, additional costs associated with response to the availability of a larger the proposed increases to size compliance and verification of their pool of small businesses under the standards, if adopted, may entail some small business status. However, small proposed increases to size standards, additional administrative costs to the business lenders have an option of using HUBZone firms might actually end up government as a result of more the tangible net worth and net income getting fewer full and open contracts, businesses qualifying as small for based alternative size standard instead thereby resulting in some cost savings to Federal small business programs. For of using the industry-based size agencies. However, such cost savings example, there will be more firms standards to establish eligibility for are likely to be minimal as only a small seeking SBA loans, more firms eligible SBA’s loans. For these reasons, SBA fraction of unrestricted contracts are for enrollment in the Dynamic Small believes that these added administrative awarded to HUBZone businesses. Business Search (DSBS) database or in costs will be minor because necessary certify.sba.gov, more firms seeking mechanisms are already in place to Transfer Impacts of Increases to Size certification as 8(a)/BD or HUBZone handle these added requirements. Standards firms or qualifying for small business, Additionally, some Federal contracts The proposed increases to size SDB, WOSB, EDWOSB, and SDVOSB may possibly have higher costs. With a standards, if adopted, may result in status, and more firms applying for greater number of businesses defined as some redistribution of Federal contracts

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between the newly qualified small Alternative Option One: Consider market trends and that Federal small businesses and large businesses and Adopting All Calculated Size Standards business assistance is more effectively between the newly qualified small As discussed elsewhere in this targeted to its intended beneficiaries. businesses and small businesses under proposed rule, Alternative Option One These include SBA’s loan programs, the current standards. However, it would cause a substantial number of EIDL program, and Federal procurement would have no impact on the overall currently small businesses to lose their programs intended for small businesses. economic activity since total Federal small business status and hence to lose Federal procurement programs provide contract dollars available for businesses their access to Federal small business targeted, set-aside opportunities for to compete for will not change with assistance, especially small business set- small businesses under SBA’s business changes to size standards. While SBA aside contracts and SBA’s financial development programs, such as small cannot quantify with certainty the assistance in some cases. These business, 8(a)/BD, SDB HUBZone, actual outcome of the gains and losses consequences could be mitigated. For WOSB, EDWOSB, and SDVOSB from the redistribution contracts among example, in response to the 2008 programs. The adoption of smaller size different groups of businesses, it can Financial Crisis and economic standards when the results support identify several probable impacts in conditions that followed, SBA adopted them diminishes the risk of awarding qualitative terms. With the availability a general policy in the first 5-year contracts to firms which are not small of a larger pool of small businesses comprehensive size standards review to anymore. under the proposed increases to size not lower any size standard (except to Decreasing size standards may reduce standards, some unrestricted Federal exclude one or more dominant firms) the administrative costs of the contracts which would otherwise be even when the analytical results government, because the risk of awarded to large businesses may be set suggested the size standard should be awarding contracts to other than small aside for small businesses. As a result, lowered. Currently, because of the businesses may diminish when the size large businesses may lose some Federal economic challenges presented by the standards reflect better the structure of contracting opportunities. Similarly, COVID–19 pandemic and the measures the market. The risks of providing SBA’s some small businesses under the current taken to protect public health, SBA has loans to firms that are not needing them size standards may obtain fewer set- decided to propose the same general the most, or allowing firms that are not aside contracts due to the increased policy of not lowering size standards in eligible for small business set-asides or competition from more advanced the second 5-year comprehensive size to participate on the SBA procurement businesses qualifying as small under the standards review as well. programs will provide for a better proposed increases to size standards. The primary benefit of adopting chance for smaller firms to grow and This impact may be offset by a greater Alternative Option One is that SBA’s benefit from the opportunities available number of procurements being set aside procurement, management, technical on the Federal market, and strengthen for all small businesses. With larger and financial assistance resources the small business industrial base for businesses qualifying as small under the would be targeted to the most the Federal Government. higher size standards, smaller small appropriate beneficiaries of such Costs of Decreases to Size Standards businesses could face some programs according to the analytical disadvantage in competing for set aside results. Adopting the size standards With fewer businesses qualifying as contracts against their larger suggested by the analytical results small under the decreases to size counterparts. However, SBA cannot would also promote consistency with standards, Federal agencies will have a quantify these impacts. analytical results in SBA’s exercise of its smaller pool of small businesses from 3. What alternatives have been authority to determine size standards. which to draw for their small business considered? SBA seeks public comment on the procurement programs. For example, in Under OMB Circular A–4, SBA is impact of adopting the size standard as Option One, during fiscal years 2016– required to consider regulatory suggested by the analytical results. 2018, agencies awarded, on an annual alternatives to the proposed changes in As explained in the Size Standards basis, about $3,118 million in small the proposed rule. In this section, SBA Methodology White Paper, in addition business contracts in those 69 industries describes and analyzes two such to adopting all results of the primary for which this Option considered alternatives to the proposed rule. analysis, SBA evaluates other relevant decreasing size standards. Table 15, Alternative Option One to the proposed factors as needed such as the impact of Impacts of Decreases of Size Standards rule, a more stringent option to the the reductions or increases of size Under Alternative Option One, below proposed rule, would propose adopting standards on the distribution of shows that lowering 69 size standards size standards based solely on the contracts awarded to small businesses, would reduce Federal contract dollars analytical results. In other words, the and may adopt different results with the awarded to small businesses by $59.0 size standards of 45 industries for which intention of mitigating potential million or about 1.9 percent relative to the analytical results suggest raising size negative impacts. the baseline level, of which more than standards would be raised, and the size We have discussed already the 50 percent are accounted for by the standards of 69 industries for which the benefits and costs of increasing 45 size Transportation and Warehousing sector analytical results suggest lowering size standards. Below we discuss the (NAICS 48–49). Because of the standards would be lowered. Size benefits and costs of decreasing 69 size importance of this sector for Federal standards for the remaining 12 standards. procurement, SBA would adopt industries would be maintained at their mitigating measures to reduce the current levels. Alternative Option Two, Benefits of Decreases to Size Standards negative impact under the assumptions would propose retaining all size The most significant benefit to of Option One. SBA could adopt one or standards for all industries, given the businesses from decreases to size more of the following three actions: 1. uncertainty generated by the ongoing standards when the SBA’s analysis to accept decreases in size standards as COVID–19 pandemic. Below, SBA suggests such decreases is to ensure that suggested by the analytical results, 2. to discusses and presents the net impacts size standards are more reflective of decrease size standards by a smaller of each option. latest industry structure and Federal amount than the calculated threshold,

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and 3. to retain the size standards at standards do not adequately serve such to determine the impacts of changes to their current levels. purposes, they can establish a different current thresholds. The impact of the Nevertheless, since Federal agencies size standard with an approval from increases of the calculated size are still required to meet the statutory SBA if they are required to use SBA’s standards were already shown in Table small business contracting goal of 23 size standards for their programs. 14 above. Table 15 above and Table 16, percent, actual impacts on the overall Transfer Impacts of Decreases to Size Net Impacts of Size Standards Changes set aside activity is likely to be smaller standards under Alternative Option One, below as agencies are likely to award more set present the impact of the decreases of aside contracts to small businesses that If the size standards were decreased size standards and the net impact of continue to remain small under the under Alternative Option One, it may adopting the calculated results under reduced size standards. result in a redistribution of Federal Alternative Option One, respectively. With fewer businesses qualifying as contracts between small businesses losing the small business status and Based on the 2012 Economic Census, small, the decreased competition can SBA estimates that in 114 industries in also result in higher prices to the large businesses and between small businesses losing the small business NAICS Sectors 48–49, 51, 52 and 53 for Government for procurements set aside which the analytical results suggested to or reserved for small businesses, but status and small businesses remaining small under the reduced size standards. change size standards, about 52 firms SBA cannot quantify this impact. (see Table 16, below), would become Decreases to size standards would have However, as under the proposed increases to size standards, it would small under the Option One. That a very minor impact on small businesses represents about 0.01 percent of all applying for SBA’s 7(a) and 504 loans have no impact on the overall economic activity since total Federal contract firms classified as small under the because a vast majority of such loans are current size standards. issued to businesses that are far below dollars available for businesses to Based on the FPDS–NG data for fiscal the reduced size standards. For compete for will stay the same. While years 2016–2018, SBA estimates that example, based on the loan data for SBA cannot estimate with certainty the actual outcome of the gains and losses about 89 active firms in Federal fiscal years 2016–2018, Option One among different groups of businesses contracting in those industries would estimates that about 36 7(a) and 504 from contract redistribution resulting lose small business status under loans with total amounts of $10.7 from decreases to size standards, it can Alternative Option One, most of them million could not be available to those identify several probable impacts. With from the Transportation and small businesses that would lose a smaller pool of small businesses under Warehousing Sector (NAICS 48–49). eligibility under the reduced size the decreases to size standards, some This represents a decrease of about 0.9 standards. That represents about a 0.5 set-aside Federal contracts to be percent of the total number of small percent decrease of the loan amounts otherwise awarded to small businesses businesses participating in Federal compared to the baseline. Table 15 may be competed in unrestricted basis. contracting under the current size below shows these results by sector. As a result, large businesses may have standards. Based on the same data, SBA However, the actual impact could be more Federal contracting opportunities. estimates that about $29.2 million of much less as businesses losing small However, because agencies are still Federal procurement dollars would not business eligibility under the decreases required by law to award 23 percent of be available to firms losing their small to industry-based size standards could dollars to small businesses, SBA expects status. This represents a decrease of 0.7 still qualify for SBA’s loans under the the movement of set-aside contracts to percent from the Group’s baseline. tangible net worth and net income based unrestricted competition to be limited. Again, most of the losses are accounted alternative size standard. For the same reason, small businesses for by the NAICS 48–49 Sector. Businesses losing small business remaining small under the reduced size Based on the SBA’s loan data for status would also be impacted in terms standards are likely to obtain more set of access to loans through the SBA’s fiscal years 2016–2018, the total number aside contracts due to the reduced of 7(a) and 504 loans may decrease by EIDL program. However, SBA expects competition from fewer businesses such impact to be minimal as only a about 22 loans, and the loan amounts by qualifying as small under the decreases about $5.0 million. This represents a 0.4 small number of businesses in those to size standards. With some larger industries received such loans during percent decrease of the loan amounts small businesses losing small business relative to the Group baseline. fiscal years 2016–2018. Additionally, all status under the decreases to size those businesses were below the standards, smaller small businesses Firms’ Participation under the SBA’s reduced size standards. Since this would likely become more competitive EIDL program will be affected as well. program is contingent on the occurrence in obtaining set aside contracts. Since the benefit provided through this and severity of a disaster in the future, However, SBA cannot quantify these program is contingent on the occurrence SBA cannot make a meaningful estimate impacts. and severity of a disaster in the future, of this impact. SBA cannot make a meaningful estimate Small businesses becoming other than Net Impact of Alternative Option One of this impact. However, based on the small if size standards were decreased To estimate the net impacts of historical trends of the EIDL data, SBA might lose benefits through reduced Alternative Option One, SBA followed estimates that, on an annual basis, the fees, less paperwork, and fewer the same methodology used to evaluate net impact of the Option One on compliance requirements that are the impacts of the proposed size additional firms is a reduction of five (5) available to small businesses through standards (see Table 14 above). loans, and a reduction of loans amounts Federal government, but SBA has no However, under Alternative Option by $0.45 million for the Group relative data to quantify this impact. However, One, SBA used the calculated size to the baseline. Table 16 provides these if agencies determine that SBA’s size standards instead of the proposed ones results by NAICS sector.

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TABLE 15—IMPACTS OF DECREASES OF SIZE STANDARDS UNDER ALTERNATIVE OPTION ONE

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

No. of industries for which SBA considered decreasing size standards (2012 Economic Census) ...... 23 9 24 13 69 Total current small businesses in industries for which SBA considered decreasing size standards (2012 Economic Census) ...... 133,032 39,030 76,036 114,495 510,777 Estimated no. of firms losing small status for which SBA considered decreasing size standards (2012 Economic Census) ...... 1,086 72 246 234 1,738 % of Firms losing small status relative to current small busi- nesses in industries for which SBA considered decreas- ing size standards ...... 0.50% 0.19% 0.34% 0.21% 0.92% No. of current unique small firms getting small business contracts in industries for which SBA considered de- creasing size standards (FPDS–NG FY2016–2018) 1 ...... 2,668 3,592 155 1,652 7,942 Estimated number of small business firms that would have lost small business status in the decreases that SBA con- sidered ...... 89 19 6 36 143 % decrease to small business firms relative to current unique small firms getting small business contracts in in- dustries for which SBA considered decreasing size stand- ards (FPDS–NG FY2016–2018) 1 ...... 3.3% 0.5% 3.9% 2.2% 1.8% Total small business contract dollars under current size standards in industries for which SBA considered de- creasing size standards ($ million) (FPDS–NG FY2016– 2018) ...... $995 $1,697 $106.0 $320.0 $3,118 Estimated small business dollars not available to firms that would have lost business status (Using avg dollars obli- gated to SBs) ($ million) 1 (FPDS–NG FY 2016–2018) ..... $30 $14 $8 $7 $59 % decrease to small business dollars relative to total small business contract dollars under current size standards in industries for which SBA considered decreasing to size standards ...... 3.0% 0.8% 7.8% 2.2% 1.9% Total no. of 7(a) and 504 loans to small businesses in in- dustries for which SBA considered decreasing size stand- ards (FY 2016–2018) ...... 3,250 457 516 964 5,187 Total amount of 7(a) and 504 loans to small businesses in industries for which SBA considered decreasing size standards ($ million) (FY 2016–2018) ...... $668.0 $183.0 $262.5 $883.0 $1,996.5 Estimated no. of 7(a) and 504 loans not available to firms that would have lost small business status ...... 30 1 2 3 36 Estimated 7(a) and 504 loan amounts not available to firms that would have small status ($ million) ...... $6.5 $0.4 $1.0 $2.7 $10.7 % decrease to 7(a) and 504 loan amounts relative to the total amount of 7(a) and 504 loans in industries for which SBA considered decreasing size standards ...... 1.0% 0.2% 0.4% 0.3% 0.5% Total no. of EIDL loans to small businesses in industries for which SBA considered decreasing size standards (FY 2016–2018) ...... 129 21 21 2,124 2,295 Total amount of EIDL loans to small businesses in indus- tries for which SBA considered decreasing size standards ($ million) (FY 2016–2018) ...... $7.6 $2.7 $1.3 $176.9 $188.5 Estimated no. of EIDL loans not available to firms that would have lost small business status ...... 3 1 1 5 10 Estimated EIDL loan amount not available to firms that would have lost small business status ($ million) ...... $0.2 $0.1 $0.1 $0.4 $0.8 % decrease to EIDL loan amount relative to the baseline .... 3.0% 4.8% 4.8% 0.2% 0.4% 1 Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2 Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small business status and small firms extending small business status.

TABLE 16—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

No. of industries with proposed changes to size standards 41 17 34 22 114 Total no. of small businesses under the current size stand- ards (2012 Economic Census) ...... 156,173 42,803.4 208,456 265,559 669,991 Additional firms qualifying as small under proposed size standards (2012 Economic Census) ...... ¥1,002 ¥60 377 736 52 % of additional firms qualifying as small relative to total cur- rent small businesses ...... ¥0.64% ¥0.14% 0.18% 0.3% 0.01%

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TABLE 16—NET IMPACTS OF SIZE STANDARDS CHANGES UNDER ALTERNATIVE OPTION ONE—Continued

Sector 48–49 Sector 51 Sector 52 Sector 53 Total

No. of current unique small firms getting small business contracts (FPDS–NG FY2016–2018) 1 ...... 3,100 3,872 257 3,215 10,264 Additional small firms getting small business status (FPDS– NG FY2016–2018) ...... ¥60 ¥14 1 ¥16 ¥89 % increase to small firms relative to current unique small firms getting small business contracts (FPDS–NG FY2016–2018) 1 ...... ¥1.9% ¥0.4% 0.4% ¥0.5% ¥0.9% Total small business contract dollars under current size standards ($ million) (FPDS–NG FY2016–2018) ...... $1,234.2 $1,846.0 $267.3 $650.6 $3,999 Estimated small business dollars available to newly quali- fied small firms ($ million) (FPDS–NG FY 2016–2018) 1 .. ¥$23.5 ¥$11.5 ¥$2.02 7.9 ¥$29.2 % increase to dollars relative to total small business con- tract dollars under current size standards ...... 1.9% 0.63% 0.75% 1.21% ¥0.73% Total no. of 7(a) and 504 loans to small businesses (FY 2016–2018) ...... 3,662 524 1,280 1,766 7,232 Total amount of 7(a) and 504 loans to small businesses (FY 2016–2018) ...... $828.5 $210.5 $519.6 $1,135.6 $2,694.2 Estimated no. of additional 7(a) and 504 loans to newly qualified small firms ...... ¥26 0 2 2 ¥22 Estimated additional 7(a) and 504 loan amount to newly qualified small firms ($ million) ...... ¥$4.1 $0.0 $0.3 ¥$1.2 ¥$5.0 % increase to 7(a) and 504 loan amount relative to the total amount of 7(a) and 504 loans to small businesses ...... ¥0.5% 0.0% 0.07% ¥0.11% ¥0.4% Total no. of EIDL loans to small businesses (FY 2016– 2018) ...... 186 31 71 2,256 2,544 Total amount of EIDL loans to small businesses (FY 2016– 2018) ...... $12.5 $3.3 $3.6 $189.2 $208.6 Estimated no. of additional EIDL loans to newly qualified small firms ...... ¥1 0 0 ¥4 ¥5 Estimated additional EIDL loan amount to newly qualified small firms ($ million) ...... ¥$0.03 ¥$0.1 $0.0 ¥$0.3 ¥$0.45 % increase to EIDL loan amount relative to the total amount of EIDL loans to small businesses ...... ¥0.2% ¥2.7% ¥0.3% ¥0.2% ¥0.2% Total current small businesses in industries with Proposed increases to size standards (FDIC) (2018) ...... 4,188 ...... Additional firms qualifying as small under proposed stand- ards (FDIC) ...... 198 ...... % Increase small institutions with proposed increases to size standards ...... 4.7% ...... Total Assets of Small Depository Institutions (FDIC, SDI) (2018) ...... $837,835.6 ...... Estimated increase in total assets of Small Depository Insti- tutions ...... $132,439.90 ...... % increase in total assets of Small depository institutions ...... 15.8% ...... Number of small Credit Unions (NCUA) (2018) ...... 5,010 ...... Additional small Credit Unions (NCUA) ...... 84 ...... % Increase small institutions with proposed increases to size standards ...... 1.7% ...... Total Assets of small Credit Unions (NCUA) (2018) ...... $377,619.2 ...... Estimated increase in total assets of Small Credit Unions ...... $56,326.80 ...... % increase in total assets of small Credit Unions ...... 14.9% ...... 1 Additional dollars are calculated multiplying average small business dollars obligated per DUNS times change in number of firms. 2 Total impact represents total unique industries impacted to avoid double counting as some industries have large firms gaining small business status and small firms extending small business status.

Alternative Option Two: To Retain all option, as the current situation Executive Order 13771 Current Size Standards develops, SBA will be able to assess new data available on economic This proposed rule is not subject to Under this alternative, given the the requirements of E.O. 13771 because indicators, federal procurement, and current COVID–19 pandemic, as SBA has determined that most of the SBA loans as well. SBA estimates a net discussed elsewhere, SBA considered rule’s impacts are income transfers impact of zero for this option, when retaining the current level of all size between small and other than small standards even though the current compared to the baseline. However, if businesses. According to the E.O. 13771 analysis may suggest changing them. we compare the proposal of adopting 45 guidance in OMB M–17–21, dated April SBA considers that the option of increases to size standards with this 5, 2017 (‘‘E.O. 13771 Guidance’’), retaining all size standards at this alternative approach, the benefits for ‘‘transfers’’ are not covered by E.O. moment provides the opportunity to small businesses of adopting the former 13771. The E.O. 13771 Guidance also reassess the economic situation once the will not be attained. states that ‘‘in some cases, [transfer economic recovery starts. Under this rules] may impose requirements apart

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from transfers, or transfers may distort 2. What are SBA’s description and By law, SBA is required to develop markets causing inefficiencies. In those estimate of the number of small numerical size standards for cases, the actions would need to be businesses to which the rule will apply? establishing eligibility for Federal small offset to the extent they impose more Based on data from the 2012 business assistance programs. Other than de minimis costs.’’ SBA estimates Economic Census, SBA estimates that than varying size standards by industry that this rulemaking would impose only there are about 319,000 small firms and changing the size measures, no de minimis costs on small businesses covered by this rulemaking under practical alternative exists to the and would result in negligible industries with proposed changes to systems of numerical size standards. compliance costs. Thus, SBA has size standards. If the proposed rule is However, SBA considered two determined that this rulemaking is adopted in its present form, SBA alternatives to its proposal to increase exempt from the requirements of E.O. estimates that an additional 1,790 45 size standards and maintain 81 size 13771. Details on the estimated costs of businesses will become small. standards at their current levels. The this proposed rule can be found in the 3. What are the projected reporting, first alternative SBA considered was Regulatory Impact Analysis above. record keeping and other compliance adopting size standards based solely on the analytical results. In other words, Initial Regulatory Flexibility Analysis requirements of the rule? The proposed size standard changes the size standards of 45 industries for According to the Regulatory impose no additional reporting or which the analytical results suggest Flexibility Act (RFA), 5 U.S.C. 601–612, record keeping requirements on small raising size standards would be raised. when an agency issues a rulemaking, it businesses. However, qualifying for However, the size standards of 69 must prepare a regulatory flexibility Federal procurement and a number of industries for which the analytical analysis to address the impact of the other programs requires that businesses results suggest lowering size standards rule on small entities. register in SAM and self-certify that would be lowered. This would cause a This proposed rule, if adopted, may they are small at least once annually. significant number of small businesses have a significant impact on a to lose their small business status. substantial number of small businesses Therefore, businesses opting to participate in those programs must Under the second alternative, in view of in the industries covered by this the COVID–19 pandemic, SBA proposed rule. As described above, this comply with SAM requirements. There are no costs associated with SAM considered retaining all size standards rule may affect small businesses seeking at the current levels, even though the Federal contracts, loans under SBA’s registration or certification. Changing size standards alters the access to SBA’s analytical results may suggest increasing 7(a), 504 and EIDL Programs, and 45 size standards and decreasing 69. programs that assist small businesses assistance under other Federal small Retaining all size standards at their but does not impose a regulatory burden business programs. current levels would be more onerous because they neither regulate nor Immediately below, SBA sets forth an for the small businesses than the option control business behavior. initial regulatory flexibility analysis of adopting 45 increases and retaining 4. What are the relevant Federal rules, (IRFA) of this proposed rule addressing the rest of size standards, as proposed. the following questions: (1) What are the which may duplicate, overlap or need for and objective of the rule?; (2) conflict with the rule? Executive Order 13563 What are SBA’s description and Under section 3(a)(2)(C) of the Small Executive Order 13563 emphasizes estimate of the number of small Business Act, 15 U.S.C. 632(a)(2)(c), the importance of quantifying both costs businesses to which the rule will Federal agencies must use SBA’s size and benefits, reducing costs, apply?; (3) What are the projected standards to define a small business, harmonizing rules, and promoting reporting, record keeping, and other unless specifically authorized by statute flexibility. A description of the need for compliance requirements of the rule?; to do otherwise. In 1995, SBA published this regulatory action and benefits and (4) What are the relevant Federal rules in the Federal Register a list of statutory costs associated with this action that may duplicate, overlap, or conflict and regulatory size standards that including possible distributional with the rule?; and (5) What alternatives identified the application of SBA’s size impacts that relate to Executive Order will allow the Agency to accomplish its standards as well as other size standards 13563 is included above in the regulatory objectives while minimizing used by Federal agencies (60 FR 57988 Regulatory Impact Analysis under the impact on small businesses? (November 24, 1995)). SBA is not aware Executive Order 12866. Additionally, 1. What is the need for and objective of any Federal rule that would duplicate Executive Order 13563, section 6, calls of the rule? or conflict with establishing size for retrospective analyses of existing Changes in industry structure, standards. rules. technological changes, productivity However, the Small Business Act and The review of size standards in the growth, mergers and acquisitions, and SBA’s regulations allow Federal industries covered by this proposed rule updated industry definitions have agencies to develop different size is consistent with section 6 of Executive changed the structure of many the standards if they believe that SBA’s size Order 13563 and the 2010 Jobs Act industries covered by this proposed standards are not appropriate for their which requires SBA to review all size rule. Such changes can be enough to programs, with the approval of SBA’s standards and make necessary support revisions to current size Administrator (13 CFR 121.903). The adjustments to reflect market standards for some industries. Based on Regulatory Flexibility Act authorizes an conditions. Specifically, the 2010 Jobs the analysis of the latest data available, Agency to establish an alternative small Act requires SBA to review at least one- SBA believes that the revised standards business definition, after consultation third of all size standards during every in this proposed rule more with the Office of Advocacy of the U.S. 18-month period from the date of its appropriately reflect the size of Small Business Administration (5 U.S.C. enactment (September 27, 2010) and to businesses that need Federal assistance. 601(3)). review all size standards not less The 2010 Jobs Act also requires SBA to 5. What alternatives will allow the frequently than once every five years, review all size standards and make Agency to accomplish its regulatory thereafter. SBA had already launched a necessary adjustments to reflect market objectives while minimizing the impact comprehensive review of size standards conditions. on small entities? in 2007. In accordance with the Jobs

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Act, SBA completed the comprehensive 3(b)(2) of Executive Order 12988, Civil For the reasons set forth in the review of the small business size Justice Reform, to minimize litigation, preamble, SBA proposes to amend 13 standard for each industry, except those eliminate ambiguity, and reduce CFR part 121 as follows: for agricultural enterprises previously burden. The action does not have set by Congress, and made appropriate retroactive or preemptive effect. PART 121—SMALL BUSINESS SIZE adjustments to size standards for a REGULATIONS Executive Order 13132 number of industries to reflect current ■ Federal and industry market conditions. 1. The authority citation for part 121 For purposes of Executive Order continues to read as follows: The first comprehensive review was 13132, SBA has determined that this completed in 2015. Prior to 2007, the proposed rule will not have substantial, Authority: 15 U.S.C. 632, 634(b)(6), last time SBA conducted a direct effects on the States, on the 636(a)(36), 662, and 694a(9); Pub. L. 116–136, Section 1114. comprehensive review of all size relationship between the national standards was during the late 1970s and government and the States, or on the ■ 2. In § 121.201 amend the table early 1980s. distribution of power and ‘‘Small Business Size Standards by SBA issued a White Paper entitled responsibilities among the various NAICS Industry’’ as follows: ‘‘Size Standards Methodology’’ and levels of government. Therefore, SBA ■ a. Revise entries ‘‘481219’’, ‘‘484122’’, published a notice in the April 11, 2019, has determined that this proposed rule ‘‘485111’’ through ‘‘485113’’, ‘‘485119’’, edition of the Federal Register (84 FR has no federalism implications ‘‘485210’’, ‘‘485410’’, ‘‘486210’’, 14587) to advise the public that the warranting preparation of a federalism Subsector 487, entries ‘‘488210’’, document is available for public review assessment. ‘‘488490’’, ‘‘488510’’, ‘‘488510 sub- and comments. The ‘‘Size Standards entry’’, ‘‘488999’’, ‘‘493120’’, ‘‘493190’’, Methodology’’ White Paper explains Paperwork Reduction Act ‘‘512132’’, ‘‘512199’’, ‘‘512240’’, how SBA establishes, reviews, and For the purpose of the Paperwork ‘‘512290’’, ‘‘515111’’, ‘‘517410’’, modifies its receipts-based and ‘‘519110’’, ‘‘519120’’, ‘‘522110’’, employee-based small business size Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule will not ‘‘522120’’, ‘‘522130’’, ‘‘522190’’, standards. SBA gave appropriate ‘‘5222210’’, ‘‘522310’’, ‘‘522390’’, consideration to all input, suggestions, impose any new reporting or record keeping requirements. ‘‘524210’’, ‘‘524292’’, ‘‘524298’’, recommendations, and relevant ‘‘531210’’, ‘‘531311’’, ‘‘531312’’, information obtained from industry List of Subjects in 13 CFR Part 121 ‘‘531320’’, ‘‘531390’’, ‘‘532282’’, groups, individual businesses, and ‘‘532283’’, ‘‘532289’’, and ‘‘532411’’ and Federal agencies in developing size Administrative practice and ■ b. Revise footnote 10. standards for those industries covered procedure, Government procurement, The revisions read as follows: by this proposed rule. Government property, Grant programs— business, Individuals with disabilities, § 121.201 What size standards has SBA Executive Order 12988 Loan programs—business, Reporting identified by North American Industry This action meets applicable and recordkeeping requirements, Small Classification System codes? standards set forth in sections 3(a) and businesses. * * * * *

SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY

NAICS Size standards in Size standards in codes NAICS U.S. industry title millions of dollars number of employees

*******

Sectors 48–49—Transportation and Warehousing Subsector 481—Air Transportation

******* 481219 ... Other Nonscheduled Air Transportation ...... $22.0.

*******

Subsector 484—Truck Transportation

******* 484122 ... General Freight Trucking, Long-Distance, Less Than Truckload ...... $38.0.

*******

Subsector 485—Transit and Ground Passenger Transportation

485111 ... Mixed Mode Transit Systems ...... $25.5. 485112 ... Commuter Rail Systems ...... $41.5. 485113 ... Bus and Other Motor Vehicle Transit Systems ...... $28.5. 485119 ... Other Urban Transit Systems ...... $33.0. 485210 ... Interurban and Rural Bus Transportation ...... $28.0.

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued

NAICS Size standards in Size standards in codes NAICS U.S. industry title millions of dollars number of employees

******* 485410 ... School and Employee Bus Transportation ...... $26.5.

*******

Subsector 486—Pipeline Transportation

******* 486210 ... Pipeline Transportation of Natural Gas ...... $36.5.

*******

Subsector 487—Scenic and Sightseeing Transportation

487110 ... Scenic and Sightseeing Transportation, Land ...... $18.0. 487210 ... Scenic and Sightseeing Transportation, Water ...... $12.5. 487990 ... Scenic and Sightseeing Transportation, Other ...... $22.0.

Subsector 488—Support Activities for Transportation

******* 488210 ... Support Activities for Rail Transportation ...... $30.0.

******* 488490 ... Other Support Activities for Road Transportation ...... $16.0. 488510 ... Freight Transportation Arrangement 10 ...... $17.5 10. 488510 Non-Vessel Owning Common Carriers and Household Goods Forwarders ...... $30.0. (Excep- tion).

******* 488999 ... All Other Support Activities for Transportation ...... $22.0.

*******

Subsector 493—Warehousing and Storage

******* 493120 ... Refrigerated Warehousing and Storage ...... $32.0.

******* 493190 ... Other Warehousing and Storage ...... $32.0.

Sector 51—Information

*******

Subsector 512—Motion Picture and Sound Recording Industries

******* 512132 ... Drive-In Motion Picture Theaters ...... $11.0.

******* 512199 ... Other Motion Picture and Video Industries ...... $25.0.

******* 512240 ... Sound Recording Studios ...... $9.5.

******* 512290 ... Other Sound Recording Industries ...... $20.0.

Subsector 515—Broadcasting (except Internet)

515111 ... Radio Networks ...... $41.5.

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued

NAICS Size standards in Size standards in codes NAICS U.S. industry title millions of dollars number of employees

*******

Subsector 517—Telecommunications

*******

517410 ... Satellite Telecommunications ...... $38.5.

*******

Subsector 519—Other Information Services

519110 ... News Syndicates ...... $32.0. 519120 ... Libraries and Archives ...... $18.5.

*******

Sector 52—Finance and Insurance Subsector 522—Credit Intermediation and Related Activities

522110 ... Commercial Banking 8 ...... $750 million in as- sets 8. 522120 ... Savings Institutions 8 ...... $750 million in as- sets 8. 522130 ... Credit Unions 8 ...... $750 million in as- sets 8. 522190 ... Other Depository Credit Intermediation 8 ...... $750 million in as- sets 8. 522210 ... Credit Card Issuing 8 ...... $750 million in as- sets 8.

******* 522310 ... Mortgage and Nonmortgage Loan Brokers ...... $13.0.

******* 522390 ... Other Activities Related to Credit Intermediation ...... $25.0.

*******

Subsector 524—Insurance Carriers and Related Activities

******* 524210 ... Insurance Agencies and Brokerages ...... $13.0.

******* 524292 ... Third Party Administration of Insurance and Pension Funds ...... $40.0. 524298 ... All Other Insurance Related Activities ...... $27.0.

*******

Sector 53—Real Estate and Rental and Leasing Subsector 531—Real Estate

******* 531210 ... Offices of Real Estate Agents and Brokers 10 ...... $13.0 10. 531311 ... Residential Property Managers ...... $11.0. 531312 ... Nonresidential Property Managers ...... $17.0. 531320 ... Offices of Real Estate Appraisers ...... $8.5. 531390 ... Other Activities Related to Real Estate ...... $17.0.

Subsector 532—Rental and Leasing Services

*******

532282 ... Video Tape and Disc Rental ...... $31.0. 532283 ... Home Health Equipment Rental ...... $36.0.

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SMALL BUSINESS SIZE STANDARDS BY NAICS INDUSTRY—Continued

NAICS Size standards in Size standards in codes NAICS U.S. industry title millions of dollars number of employees

******* 532289 ... All Other Consumer Goods Rental ...... $11.0.

******* 532411 ... Commercial Air, Rail, and Water Transportation Equipment Rental and Leasing $40.0.

******* Footnotes ***** 8 NAICS Codes 522110, 522120, 522130, 522190, and 522210—A financial institution’s assets are determined by averaging the assets re- ported on its four quarterly financial statements for the preceding year. ‘‘Assets’’ for the purposes of this size standard means the assets defined according to the Federal Financial Institutions Examination Council 041 call report form for NAICS Codes 522110, 522120, 522190, and 522210 and the National Credit Union Administration 5300 call report form for NAICS code 522130. ***** 10 NAICS codes 488510 (excluding the exception), 531210, 541810, 561510, 561520 and 561920—As measured by total revenues, but ex- cluding funds received in trust for an unaffiliated third party, such as bookings or sales subject to commissions. The commissions received are included as revenues. *****

Jovita Carranza, Administrator. [FR Doc. 2020–21593 Filed 10–1–20; 8:45 am] BILLING CODE 8026–03–P

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Part III

Department of Veterans Affairs

Privacy Act of 1974; System of Records; Notice

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DEPARTMENT OF VETERANS Technology Centers (CTC): Primary Data Routine Use sixty-three (63) is being AFFAIRS Center in Kansas City, MO and added to state, ‘‘Disclosure of Veteran Continuity of Operations/Disaster identifiers and demographic Privacy Act of 1974; System of Recovery (COOP/DR) Data Center in information (e.g., name, social security Records Lees Summit, MO. number (SSN), address, date of birth) The System Manager is being updated may be made to an organization with AGENCY: Department of Veterans Affairs to reflect organization changes. This whom VA has a documented (VA). section will also replace, ‘‘Health Data partnership, arrangement or agreement ACTION: Notice of a Modified System of Repository: Director, Health Data (e.g., Health Information Exchange Records. Systems (19–SL), Department of (HIE), Health Information Service Veterans Affairs, 295 Chipeta Way, Salt Provider (HISP) Direct, CommonWell SUMMARY: As required by the Privacy Lake City, UT 84108.’’ with ‘‘Clinical Health Alliance network), for the Act of 1974, notice is hereby given that Data Repository/Health Data Repository: purpose of identifying and correlating the Department of Veterans Affairs (VA) Director, Clinical Informatics and Data patients.’’ VA needs this ability to share is amending the system of records Management Office (10A7A0), 810 demographic information for correlation entitled ‘‘Patient Medical Records–VA’’ Vermont Avenue NW, Washington, DC and identification purposes. (24VA10P2). VA is amending the system 20420.’’ Routine Use sixty-four (64) is being by revising the System Number; System The Purpose is being amended to added to state, VA may disclose relevant Location; System Manager; Purpose; remove law enforcement investigations. health care information to the Centers Categories of Individuals Covered by the The Categories of Individuals Covered for Disease Control and Prevention System; Categories of Records in the by the System, number 7 is being (CDC) and/or their designee in response System; Record Source Categories; amended to include ‘‘other to its request or at the initiation of VA, Routine Uses of Records Maintained in circumstances including but not limited in connection with disease-tracking, the System; Policies and Practices for to’’. patient outcomes, bio-surveillance, or Storage of Records; Policies and The Categories of Records in the other health information required for Practices For Retention and Disposal of System, (iii) is being amended to program accountability. VA needs the Records; Physical, Procedural, and include medical record number. ability to conduct disease tracking to Administrative Safeguards; and Record Source Categories is being impact patient outcomes, respond to Appendix. VA is republishing the amended to include the individual public health threats, and to contribute system notice in its entirety. receiving care and VHA national significantly to the CDC’s ability to DATES: Comments on this amended databases. conduct and monitor public health system of records must be received no Routine use seventeen (17) is being surveillance. later than November 2, 2020. If no amended to remove General Services Policies and Practices for Storage of public comment is received during the Administration. Records section is being amended to period allowed for comment or unless Routine use forty-seven (47) is being include Cerner Technology Centers. otherwise published in the Federal amended to include care coordination. Policies and Practices for Register by VA, the new system will Routine Use sixty-one (61) is being Retrievability of Records is being become effective November 2, 2020. added to state, ‘‘VA may disclose health amended to include medical record care information to DoD for the purpose ADDRESSES: Comments may be number. of VHA health care operations as submitted through www.Regulations.gov Policies and Practices for Retention defined in the HIPAA Privacy Rule, 45 or mailed to, Director, Information and Disposal of Records is being CFR parts 160 and 164 and to the Access and Privacy (10A7B), amended to include VHA Records Defense Health Agency (DHA), as a Department of Veterans Affairs, 810 Control Schedule (RCS 10–1) 6000.1d health care provider, for the purpose of Vermont Avenue NW, Washington, DC (N1–15–91–6, Item 1d) and 6000.2b DHA heath care operations.’’ VHA, as a 20420. Comments should indicate that (N1–15–02–3, Item 3). health care provider, must be able to The Physical, Procedural and they are submitted in response to share health care information with other Administrative Safeguards section is ‘‘Patient Medical Records-VA’’. entities and health care providers for being amended to change the VA Boston Comments received will be available at VA to perform certain health care Development Center to the Allocation regulations.gov for public viewing, operations, such as quality assessment Resource Center. This section will add, inspection or copies. and improvement activities and medical ‘‘Access to Cerner Technology Centers is FOR FURTHER INFORMATION CONTACT: reviews. generally restricted to Cerner Stephania Griffin, Veterans Health Routine use sixty-two (62) is being employees, contractors or associates Administration (VHA) Privacy Officer, added to state, ‘‘VA may disclose with a Cerner issued ID badge and other Department of Veterans Affairs, 810 information from this system of records security personnel cleared for access to Vermont Avenue NW, Washington, DC to another Federal agency or Federal the data center. Access to computer 20420; telephone (704) 245–2492 (Note: entity, when VA determines that rooms housing Federal data, hence not a toll-free number). information from this system of records Federal enclave, is restricted to persons SUPPLEMENTARY INFORMATION: The is reasonably necessary to assist the Federally cleared for Federal enclave System Number is being updated from recipient agency or entity in (1) access through electronic badge entry 24VA10P2 to 24VA10A7 to address responding to a suspected or confirmed devices. All other persons, such as organizational changes. breach or (2) preventing, minimizing, or custodians, gaining access to Federal The System Location is being updated remedying the risk of harm to enclave are escorted.’’ to reflect electronic records being individuals, the recipient agency or Appendix 1 is being amended update located at Federal Records Centers, VA entity (including its information addresses pertaining to VA facilities. Enterprise Cloud Data Centers/Amazon systems, programs, and operations), the The Report of Intent to Amend a Web Services, 1915 Terry Avenue, Federal Government, or national System of Records Notice and an Seattle, WA 98101 and contracted data security, resulting from a suspected or advance copy of the system notice have repository sites, such as the Cerner confirmed breach.’’ been sent to the appropriate

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Congressional committees and to the Veterans Integrated Service Networks; Title 38, United States Code, and Director of the Office of Management and Regional and General Counsel members of their immediate families; and Budget (OMB) as required by 5 Offices. 2. Spouses, surviving spouses, and U.S.C. 552a(r) (Privacy Act) and children of Veterans who have applied guidelines issued by OMB (65 FR SYSTEM MANAGER(S): for health care services under Chapter 77677), December 12, 2000. Patient Medical Records: Director, 17 of Title 38, United States Code; Health Information Governance 3. Beneficiaries of other Federal Signing Authority (10A7B), Department of Veterans agencies; The Senior Agency Official for Affairs, 810 Vermont Avenue NW, 4. Individuals examined or treated Privacy, or designee, approved this Washington, DC 20420. Clinical Health under contract or resource sharing document and authorized the Data Repository/Health Data Repository: agreements; undersigned to sign and submit the Director, Clinical Informatics and Data 5. Individuals examined or treated for document to the Office of the Federal Management Office (10A7A), 810 research or donor purposes; Register for publication electronically as Vermont Avenue NW, Washington, DC 6. Individuals who have applied for an official document of the Department 20420. Title 38 benefits but who do not meet of Veterans Affairs. James P. Gfrerer, the requirements under Title 38 to Assistant Secretary of Information and AUTHORITY FOR MAINTENANCE OF THE SYSTEM: receive such benefits; Technology and Chief Information Title 38, United States Code, Sections 7. Individuals who were provided Officer, approved this document on 501(b) and 304. medical care under other circumstances, June 16, 2020 for publication. including but not limited to, emergency PURPOSE(S) OF THE SYSTEM: conditions for humanitarian reasons; Dated: September 24, 2020. The paper and automated records may 8. Pensioned members of allied forces Amy L. Rose, be used for such purposes as: ongoing provided health care services under Program Analyst, VA Privacy Service, Office treatment of individuals and patients; Chapter I of Title 38, United States of Information Security, Office of Information documentation of treatment provided; Code; and and Technology, Department of Veterans payment; health care operations such as 9. Caregivers. Affairs. producing various management and CATEGORIES OF RECORDS IN THE SYSTEM: SYSTEM NAME AND NUMBER: patient follow-up reports; responding to The medical record is a consolidated Patient Medical Records–VA patient and other inquiries; for health record (CHR) which may include: (24VA10A7) epidemiological research and other health care related studies; statistical (i) An administrative (non-clinical SECURITY CLASSIFICATION: analysis, resource allocation and information) record (e.g., medical Unclassified. planning; providing clinical and benefit application and eligibility administrative support to patient information) including information SYSTEM LOCATION: medical care; determining entitlement obtained from Veterans Benefits Records are maintained at each VA and eligibility for VA benefits; Administration automated records such health care facility (in most cases, processing and adjudicating benefit as the Veterans and Beneficiaries backup information is stored at off-site claims by Veterans Benefits Identification and Records Locator locations), VA Enterprise Cloud Data Administration Regional Office (VARO) Subsystem-VA (38VA23) and the Centers/Amazon Web Services, 1915 staff; for audits, reviews, and Compensation, Pension, Education and Terry Avenue, Seattle, WA 98101 and investigations conducted by staff of the Rehabilitation Records-VA (58VA21/22/ contracted data repository sites, such as health care facility, the networks, VA 28), and correspondence about the the Cerner Technology Centers (CTC): Central Office, and the VA Office of individual; Primary Data Center in Kansas City, MO Inspector General (OIG); sharing of (ii) A medical record (a cumulative and Continuity of Operations/Disaster health information between and among account of sociological, diagnostic, Recovery (COOP/DR) Data Center in Veterans Health Administration (VHA), counseling, rehabilitation, drug and Lees Summit, MO. Subsidiary record Department of Defense (DoD), Indian alcohol, dietetic, medical, surgical, information is maintained at the various Health Services (IHS), and other dental, psychological, and/or respective services within the health government and private industry health psychiatric information compiled by VA care facility (e.g., Pharmacy, Fiscal, care organizations; quality assurance professional staff and non-VA health Dietetic, Clinical Laboratory, Radiology, audits, reviews, and investigations; care providers), and Social Work, Psychology) and by personnel management and evaluation; (iii) Subsidiary record information individuals, organizations, and/or employee ratings and performance (e.g., Bed Management Solution (BMS), agencies with which VA has a contract evaluations; and employee disciplinary tumor registry, certain clinically or agreement to perform such services, or other adverse action, including oriented information associated with as VA may deem practicable. discharge; advising health care My HealtheVet such as secure messages, Address locations for VA facilities are professional licensing or monitoring minimum data set, dental, pharmacy, listed in Appendix 1 of the biennial bodies or similar entities of activities of nuclear medicine, clinical laboratory, publication of the VA Privacy Act VA and former VA health care radiology, and patient scheduling Issuances. In addition, information from personnel; accreditation of a facility by information). The CHR may also include these records or copies of these records an entity such as the Joint Commission identifying information (e.g., name, may be maintained at the Department of (TJC); and notifying medical schools of address, date of birth, VA claim number, Veterans Affairs Central Office, 810 medical students’ performance and social security number); medical record Vermont, NW, Washington, DC 20420; billing. number, military service information VA National Data Centers; Federal (e.g., dates, branch and character of Records Center; VA Health Data CATEGORIES OF INDIVIDUALS COVERED BY THE service, service number, medical Repository (HDR), located at the VA SYSTEM: information); family information (e.g., National Data Centers; VA Chief 1. Veterans who have applied for next of kin and person to notify in an Information Office (CIO) Field Offices; health care services under Chapter 17 of emergency; address information, name,

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social security number and date of birth ROUTINE USES OF RECORDS MAINTAINED IN THE investigation of an employee, or the for Veteran’s spouse and dependents; SYSTEM, INCLUDING CATEGORIES OF USERS AND issuance of a license, grant, or other family medical history information); THE PURPOSES OF SUCH USES: benefit by the requesting agency, to the employment information (e.g., To the extent that records contained extent that the information is relevant occupation, employer name and in the system include information and necessary to the requesting agency’s address); financial information (e.g., protected by 45 CFR parts 160 and 164, decision. i.e., individually identifiable health family income; assets; expenses; debts; 5. Health care information may be information, and 38 U.S.C. 7332, i.e., amount and source of income for disclosed by appropriate VA personnel medical treatment information related to to the extent necessary and on a need- Veteran, spouse, and dependents); third- drug abuse, alcoholism or alcohol abuse, to-know basis, consistent with good party health plan contract information sickle cell anemia, or infection with the medical-ethical practices, to family (e.g., health insurance carrier name and Human Immunodeficiency Virus, that members and/or the person(s) with address, policy number, amounts billed information may not be disclosed under whom the patient has a meaningful and paid); and information pertaining to a routine use unless there is also relationship. In response to an inquiry the individual’s medical, surgical, specific statutory authority in 38 U.S.C. from a member of the general public psychiatric, dental, and/or 7332 and regulatory authority in 45 CFR about a named individual, VA may psychological examination, evaluation, parts 160 and 164 permitting disclosure. disclose the patient’s name, presence and/or treatment (e.g., information 1. VA may disclose health care (and location when needed for visitation related to the chief complaint and information as deemed necessary and purposes) in a medical facility, and history of present illness; information proper to Federal, State, and local general condition that does not reveal related to physical, diagnostic, government agencies and national specific medical information (e.g., therapeutic special examinations; health organizations in order to assist in satisfactory, seriously ill). clinical laboratory, pathology and x-ray the development of programs that will 6. In the course of presenting findings; operations; medical history; be beneficial to claimants, protect their evidence to a court, magistrate, or medications prescribed and dispensed; rights under law, and assure that they administrative tribunal in matters of are receiving all benefits to which they treatment plan and progress; guardianship, inquests, and are entitled. consultations; photographs taken for commitments, VA may disclose relevant 2. VA may disclose health care information to private attorneys identification and medical treatment; information furnished and the period of representing Veterans rated incompetent education and research purposes; care, as deemed necessary and proper to in conjunction with issuance of facility locations where treatment is accredited service organization certificates of incompetency and to provided; observations and clinical representatives and other approved probation and parole officers in impressions of health care providers to agents, attorneys, and insurance connection with court-required duties. include identity of providers and to companies to aid claimants whom they VA may disclose relevant information to include, as appropriate, the present state represent in the preparation, a guardian ad litem in relation to his or of the patient’s health; and an presentation, and prosecution of claims her representation of a claimant in any assessment of the patient’s emotional, under laws administered by VA, or State legal proceeding. behavioral, and social status, as well as or local agencies. 7. VA may disclose information to a an assessment of the patient’s 3. VA may disclose any information member of Congress or a congressional rehabilitation potential and nursing care in this system, except the names and staff member in response to an inquiry needs). Abstract information (e.g., home addresses of Veterans and their from the congressional office made at environmental, epidemiological and dependents, which is relevant to a the request of that individual. treatment regimen registries) is suspected or reasonably imminent 8. VA may disclose name(s) and maintained in auxiliary paper and violation of law, whether civil, criminal address(es) of present or former automated records. or regulatory in nature and whether members of the armed services and/or arising by general or program statute or their dependents under certain RECORD SOURCE CATEGORIES: by regulation, rule or order issued circumstances: (a) to any nonprofit pursuant thereto, to a Federal, State, organization, if the release is directly The individual receiving care, local, tribal, or foreign agency charged connected with the conduct of programs patients, family members, friends, or with the responsibility of investigating and the utilization of benefits under accredited representatives, employers; or prosecuting such violation, or Title 38, or (b) to any criminal or civil military service departments; health charged with enforcing or implementing law enforcement governmental agency insurance carriers; private medical the statute, regulation, rule or order. VA or instrumentality charged under facilities and health care professionals; may also disclose the names and applicable law with the protection of State and local agencies; other Federal addresses of Veterans and their the public health or safety, if a qualified agencies; VA Regional Offices; VHA dependents to a Federal agency charged representative of such organization, national databases; Veterans Benefits with the responsibility of investigating agency, or instrumentality has made a Administration automated record or prosecuting civil, criminal or written request for such name(s) or systems (including Veterans and regulatory violations of law, or charged address(es) for a purpose authorized by Beneficiaries Identification and Records with enforcing or implementing the law, provided that the records will not Location Subsystem-VA (38VA23) and statute, regulation, rule or order issued be used for any purpose other than that the Compensation, Pension, Education pursuant thereto. stated in the request and that the 4. VA may disclose information to a and Rehabilitation Records-VA organization, agency, or instrumentality Federal agency or the District of is aware of the penalty provision of 38 (58VA21/22/28); and various automated Columbia government, in response to its U.S.C. 5701(f). systems providing clinical and request, in connection with the hiring or 9. VA may disclose the nature of the managerial support to VA health care retention of an employee and the patient’s illness, probable prognosis, facilities. issuance of a security clearance as estimated life expectancy, and need for required by law, the reporting of an the presence of the related service

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member to the American Red Cross for c. Any VA employee in his or her Immunodeficiency Virus (HIV) to a the purpose of justifying emergency individual capacity, where DoJ has Federal, State, or local public health leave. agreed to represent the employee; or authority that is charged under Federal 10. VA may disclose relevant d. The United States, where VA or State law with the protection of the information to attorneys, insurance determines that the proceedings are public health, and to which Federal or companies, employers, third parties likely to affect the operations of VA or State law requires disclosure of such liable or potentially liable under health any of its components is a party to or record, if a qualified representative of plan contracts, and courts, boards, or has an interest in the proceedings, and such authority has made a written commissions, to the extent necessary to VA determines that the records are request that such record be provided as aid VA in the preparation, presentation, relevant and necessary to the required pursuant to such law for a and prosecution of claims authorized proceedings. purpose authorized by the law. The under Federal, State, or local laws, and 16. Health care information may be person to whom information is regulations promulgated thereunder. disclosed by the examining VA disclosed, under 38 U.S.C. 11. VA may disclose health physician to a non-VA physician when 7332(b)(2)(C), should be advised that information for research purposes that non-VA physician has referred the they shall not re-disclose or use such determined to be necessary and proper individual to VA for medical care. information for a purpose other than to epidemiological and other research 17. VA may disclose records to the that for which the disclosure was made. entities approved by the Under National Archives and Records The disclosure of patient name and Secretary for Health or designee, such as Administration in records management address under this routine use must the Medical Center Director of the inspections and other activities comply with the provisions of 38 U.S.C. facility where the information is conducted under Title 44, Chapter 29, of 5701(f)(2). maintained. the U.S.C. 21. Information indicating that a 12. VA may disclose relevant 18. VA may disclose health care patient or subject is infected with the information to attorneys, insurance information concerning a non-judicially Human Immunodeficiency Virus (HIV) companies, employers, third parties declared incompetent patient to a third may be disclosed by a physician or liable or potentially liable under health party upon the written authorization of professional counselor to the spouse of plan contracts, and courts, boards, or the patient’s next of kin in order for the the patient or subject, to an individual commissions, to the extent necessary to patient or, consistent with the best with whom the patient or subject has a aid VA in the preparation, presentation, interest of the patient, a member of the meaningful relationship, or to an and prosecution of claims authorized patient’s family, to receive a benefit to individual whom the patient or subject under Federal, State, or local laws, and which the patient or family member is has during the process of professional regulations promulgated thereunder. entitled or to arrange for the patient’s counseling or of testing to determine 13. VA may disclose health discharge from a VA medical facility. whether the patient or subject is information for research purposes Sufficient information to make an infected with the virus, identified as determined to be necessary and proper informed determination will be made being a sexual partner of the patient or to epidemiological and other research available to such next of kin. If the subject. Disclosures may be made only entities approved by the Under patient’s next of kin is not reasonably if the physician or counselor, after Secretary for Health or designee, such as accessible, the chief of staff, director, or making reasonable efforts to counsel the Medical Center Director of the designee of the custodial VA medical and encourage the patient or subject to facility where the information is facility may make the disclosure for provide the information to the spouse or maintained. these purposes. sexual partner, reasonably believes that 14. VA may disclose health 19. VA may disclose information to a the patient or subject will not provide information, including the name(s) and Federal agency, a State or local the information to the spouse or sexual address(es) of present or former government licensing board, and/or the partner and that the disclosure is personnel of the Armed Services and/or Federation of State Medical Boards or a necessary to protect the health of the their dependents, (a) to a Federal similar non-governmental entity that spouse or sexual partner. Such department or agency or (b) directly to maintains records concerning disclosures should, to the extent a contractor of a Federal department or individuals’ employment histories or feasible, be made by the patient’s or agency, at the written request of the concerning the issuance, retention, or subject’s treating physician or head of the agency or the designee of the revocation of licenses, certifications, or professional counselor. Before any head of that agency, to conduct Federal registration necessary to practice an patient or subject gives consent to being research necessary to accomplish a occupation, profession, or specialty, to tested for the HIV, as part of pre-testing statutory purpose of an agency. When inform the entity about the health care counseling, the patient or subject must this information is to be disclosed practices of a terminated, resigned, or be informed fully about these directly to the contractor, VA may retired health care employee whose notification procedures. impose applicable conditions on the professional health care activity so 22. VA may disclose information, department, agency, and/or contractor significantly failed to conform to including name, address, social security to ensure the appropriateness of the generally accepted standards of number, and other information as is disclosure to the contractor. professional medical practice as to raise reasonably necessary to identify an 15. VA may disclose relevant reasonable concern for the health and individual, to the National Practitioner information to the Department of Justice safety of patients in the private sector or Data Bank at the time of hiring and/or (DoJ) or other Federal agencies in from another Federal agency. These clinical privileging/re-privileging of pending or reasonably anticipated records may also be disclosed as part of health care practitioners, and other litigation or other proceedings before a an ongoing computer matching program times as deemed necessary by VA, in court, administrative body, or other to accomplish these purposes. order for VA to obtain information adjudicative tribunal, when: 20. VA may disclose information relevant to a Department decision a. VA or any subdivision thereof; maintained in connection with the concerning the hiring, privileging/re- b. Any VA employee in his or her performance of any program or activity privileging, retention, or termination of official capacity; relating to infection with the Human the applicant or employee.

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23. VA may disclose relevant entitlement to a benefit, or recovery of reaction to the Food and Drug information to the National Practitioner the costs of the medical care. Administration (FDA), HHS, for Data Bank and/or State Licensing Board 26. VA may disclose health care purposes of quality of care management, in the State(s) in which a practitioner is information for program review including detection, treatment, licensed, the VA facility is located, and/ purposes and the seeking of monitoring, reporting, analysis, and or an act or omission occurred upon accreditation and/or certification to follow-up actions relating to adverse which a medical malpractice claim was survey teams of the Joint Commission, drug reactions. based, when VA reports information College of American Pathologists, 33. VA may disclose information to concerning: (a) Any payment for the American Association of Blood Banks, Federal agencies and government-wide benefit of a physician, dentist, or other and similar national accrediting third-party insurers responsible for licensed health care practitioner which agencies or boards with which VA has payment of the cost of medical care for was made as the result of a settlement a contract or agreement to conduct such the patients, in order for VA to seek or judgment of a claim of medical reviews, but only to the extent that the recovery of the medical care costs. malpractice, if an appropriate information is necessary and relevant to These records may also be disclosed as determination is made in accordance the review. part of a computer matching program to with Department policy that payment 27. VA may disclose relevant health accomplish these purposes. was related to substandard care, care information to a non-VA nursing 34. VA may disclose information professional incompetence or home facility that is considering the pursuant to 38 U.S.C. 7464, and professional misconduct on the part of patient for admission, when information notwithstanding 38 U.S.C. 5701 and the individual; (b) a final decision concerning the individual’s medical 7332, to a former VA employee, as well which relates to possible incompetence care is needed for the purpose of as an authorized representative of the or improper professional conduct that preadmission screening under 42 CFR employee, whose case is under adversely affects the clinical privileges 483.20(f), to identify patients who are consideration by the VA Disciplinary of a physician or dentist for a period mentally ill or mentally retarded so they Appeals Board, in connection with the longer than 30 days; or (c) the surrender can be evaluated for appropriate considerations of the Board, to the of clinical privileges or any restriction placement. extent the Board considers appropriate 28. VA may disclose information of such privileges by a physician or for purposes of the proceedings of the which relates to the performance of a dentist, either while under investigation Board in that case, when authorized by health care student or provider to a by the health care entity relating to the chairperson of the Board. medical or nursing school or other 35. Information that a patient is possible incompetence or improper health care related training institution, infected with Hepatitis C may be professional conduct. These records or other facility with which VA has an disclosed by a physician or professional may also be disclosed as part of a affiliation, sharing agreement, contract, counselor to the spouse, the person or computer matching program to or similar arrangement, when the subject with whom the patient has a accomplish these purposes. student or provider is enrolled at or meaningful relationship, or an 24. VA may disclose relevant health employed by the school, training individual whom the patient or subject care information to a State Veterans institution, or other facility, and the has identified as being a sexual partner Home for the purpose of medical information is needed for personnel of the patient or subject. treatment and/or follow-up at the State management, rating, and/or evaluation 36. VA may disclose to the Federal home when VA makes payment of a per purposes. Labor Relations Authority, including its diem rate to the State home for the 29. VA may disclose relevant health General Counsel, information related to patient receiving care at such home, and care information to individuals, the establishment of jurisdiction, the patient receives VA medical care. organizations, and private or public investigation, and resolution of 25. VA may disclose relevant health agencies with which VA has a contract allegations of unfair labor practices, or care information to (a) a Federal agency or sharing agreement for the provision in connection with the resolution of or non-VA health care provider or of health care or administrative services. exceptions to arbitration awards when a institution when VA refers a patient for 30. VA may disclose identifying question of material fact is raised in hospital or nursing home care or information, including Social Security matters before the Federal Service medical services, or authorizes a patient number of a Veteran, spouse, and Impasses Panel. to obtain non-VA medical services, and dependent, to other Federal agencies for 37. VA may disclose information to the information is needed by the Federal purposes of conducting computer officials of labor organizations agency or non-VA institution or matches to obtain information to recognized under 5 U.S.C. Chapter 71 provider to perform the services, or (b) determine, or to verify eligibility of when relevant and necessary to their a Federal agency or a non-VA hospital Veterans who are receiving VA medical duties of exclusive representation (Federal, State and local, public, or care under Title 38. concerning personnel policies, private) or other medical institution 31. VA may disclose the name and practices, and matters affecting working having hospital facilities, blood banks, Social Security number of a Veteran, conditions. or similar institutions, medical schools spouse, and dependent, and other 38. VA may disclose information to or clinics, or other groups or individuals identifying information as is reasonably officials of the Merit Systems Protection that have contracted or agreed to necessary, to the Social Security Board, including the Office of the provide medical services or share the Administration, Department of Health Special Counsel, when requested in use of medical resources under the and Human Services (HHS), for the connection with appeals, special studies provisions of 38 U.S.C. 513, 7409, 8111, purpose of conducting a computer of the civil service and other merit or 8153, when treatment is rendered by match to obtain information to validate systems, review of rules and regulations, VA under the terms of such contract or the Social Security numbers maintained investigation of alleged or possible agreement, or the issuance of an in VA records. prohibited personnel practices, such authorization, and the information is 32. VA may disclose the patient’s other functions promulgated in 5 U.S.C. needed for purposes of medical name and relevant health care 1205 and 1206, or as otherwise treatment and/or follow-up, determining information concerning an adverse drug authorized by law.

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39. VA may disclose information to organization, a designated requester 53. VA may disclose information to a the Equal Employment Opportunity who is not a VA employee, or their former VA employee or contractor, as Commission when requested in designees acting on behalf of local organ well as the authorized representative of connection with investigations of procurement organizations. a current or former employee or alleged or possible discrimination 47. VA may disclose relevant heath contractor of VA, in pending or practices, examinations of Federal care information to DoD, or its reasonably anticipated litigation against affirmative employment programs, components, as necessary in addressing the individual regarding health care compliance with the Uniform the transition, care coordination, health provided during the period of his or her Guidelines of Employee Selection care, benefits, and administrative employment or contract with VA. Procedures, or other functions of the support needs of or for wounded, ill, 54. VA may disclose information to a Commission as authorized by law or and injured active duty service members former VA employee or contractor, as regulation. or reserve components, Veterans, and well as the authorized representative of 40. VA may disclose relevant health their beneficiaries. a current or former employee or care information to health and welfare 48. VA may disclose information to contractor of VA, in defense or agencies, housing resources, and utility other Federal agencies in order to assist reasonable anticipation of a tort claim, companies, possibly to be combined those agencies in preventing, detecting, litigation, or other administrative or with disclosures to other agencies, in and responding to possible fraud or judicial proceeding involving VA when situations where VA needs to act abuse by individuals in their operations the Department requires information or quickly in order to provide basic and/ and programs. consultation assistance from the former or emergency needs for the patient and 49. VA may disclose any information employee or contractor regarding health patient’s family where the family or records to appropriate agencies, care provided during the period of his resides with the patient or serves as a entities, and persons when (1) VA or her employment or contract with VA. 55. VA may disclose information to a caregiver. suspects or has confirmed that there has 41. VA may disclose health care former VA employee or contractor, as been a breach of the system of records; information to funeral directors or well as the authorized representative of (2) VA has determined that as a result representatives of funeral homes in a current or former employee or of the suspected or confirmed breach order for them to make necessary contractor of VA, in connection with or there is a risk to individuals, VA arrangements prior to and in in consideration of the reporting of: (including its information systems, anticipation of a patient’s death. (a) Any payment for the benefit of the 42. VA may disclose health care programs, and operations), the Federal former VA employee or contractor that information to the FDA, or a person Government, or national security; and was made as the result of a settlement subject to the jurisdiction of the FDA, (3) the disclosure made to such or judgment of a claim of medical with respect to FDA-regulated products agencies, entities, or persons is malpractice, if an appropriate for purposes of reporting adverse events, reasonably necessary to assist in determination is made in accordance product defects or problems, or connection with VA efforts to respond with Department policy that payment biological product deviations; tracking to the suspected or confirmed breach or was related to substandard care, products; enabling product recalls, to prevent, minimize, or remedy such professional incompetence, or repairs, or replacement; and/or harm. professional misconduct on the part of conducting post marketing surveillance. 50. VA may disclose information to the individual; 43. VA may disclose health care any third party or Federal agency, (b) A final decision which relates to information to a non-VA health care including contractors to those parties, possible incompetence or improper provider, such as private health care who are responsible for payment of the professional conduct that adversely providers or hospitals, DoD, or IHS cost of medical care for the identified affects the former employee’s or providers, for the purpose of treating VA patients, in support of VA recovery of contractor’s clinical privileges for a patients. medical care costs or for any activities period longer than 30 days; or 44. VA may disclose information to related to payment of medical care (c) The former employee’s or telephone company operators acting in costs. These records may also be contractor’s surrender of clinical their capacity to facilitate phone calls disclosed as part of a computer privileges or any restriction of such for hearing impaired individuals, such matching program to accomplish these privileges while under investigation by as patients, patients’ family members, or purposes. the health care entity relating to non-VA providers, using telephone 51. VA may disclose relevant possible incompetence or improper devices for the hearing impaired, information to health plans, quality professional conduct to the National including Telecommunications Device review and/or peer review organizations Practitioner Data Bank or the State for the Deaf (TDD) or Text Telephones in connection with the audit of claims licensing board in any State in which (TTY). or other review activities to determine the individual is licensed, the VA 45. VA may disclose information to quality of care or compliance with facility is located, or an act or omission any Federal, State, local, tribal, or professionally accepted claims occurred upon which a medical foreign law enforcement agency in order processing standards. malpractice claim was based. to report a known fugitive felon, in 52. VA may disclose identifying 56. VA may disclose information to a compliance with 38 U.S.C. 5313B(d). information, including name, address, former VA employee or contractor, as 46. Relevant health care information and date of birth, as needed to verify the well as the authorized representative of may be disclosed by VA employees who identity of an individual or to facilitate a current or former employee or are designated requesters (individuals delivery of benefits or services to travel contractor of VA, in connection with or who have completed a course offered or agencies, transportation carriers, or in consideration of reporting that the approved by an Organ Procurement others authorized to act on behalf of VA individual’s professional health care Organization), or their designees, for the to provide or arrange travel for activity so significantly failed to purpose of determining suitability of a examination, treatment, or care, or in conform to generally accepted standards patient’s organs or tissues for organ connection with vocational of professional medical practice as to donation to an organ procurement rehabilitation or counseling services. raise reasonable concern for the health

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and safety of patients, to a Federal responding to a suspected or confirmed 6000.1d (N1–15–91–6, Item 1d) and agency, a State or local government breach or (2) preventing, minimizing, or 6000.2b (N1–15–02–3, Item 3). licensing board, or the Federation of remedying the risk of harm to PHYSICAL, PROCEDURAL, AND ADMINISTRATIVE State Medical Boards or a similar individuals, the recipient agency or SAFEGUARDS: nongovernmental entity which entity (including its information maintains records concerning systems, programs, and operations), the 1. Access to working spaces and individuals’ employment histories or Federal Government, or national patient medical record storage areas in concerning the issuance, retention, or security, resulting from a suspected or VA health care facilities is restricted to revocation of licenses, certifications, or confirmed breach. authorized VA employees. Generally, registration necessary to practice an 63. Disclosure of Veteran identifiers file areas are locked after normal duty occupation, profession, or specialty. and demographic information (e.g., hours. Health care facilities are 57. VA may disclose information to a name, social security number (SSN), protected from outside access by the former VA employee or contractor, as address, date of birth) may be made to Federal Protective Service and/or other well as the authorized representative of an organization with whom VA has a security personnel. Access to patient a current or former employee or documented partnership, arrangement medical records is restricted to VA contractor of VA, in connection with or agreement (e.g., Health Information employees who have a need for the investigations by the Equal Employment Exchange (HIE), Health Information information in the performance of their Opportunity Commission pertaining to Service Provider (HISP) Direct, official duties. Sensitive patient medical alleged or possible discrimination CommonWell Health Alliance network), records, including employee patient practices, examinations of Federal for the purpose of identifying and medical records, records of public affirmative employment programs, or correlating patients. figures, or other sensitive patient other functions of the Commission as 64. VA may disclose relevant health medical records are generally stored in authorized by law or regulation. care information to the CDC and/or their separate locked files or a similar 58. VA may disclose information to a designee in response to its request or at electronically controlled access former VA employee or contractor, as the initiation of VA, in connection with environment. Strict control measures well as the authorized representative of disease-tracking, patient outcomes, bio- are enforced to ensure that access to and a current or former employee or surveillance, or other health information disclosures from these patient medical contractor of VA, in proceedings before required for program accountability. records are limited. the Merit Systems Protection Board or 2. Access to computer rooms within the Office of the Special Counsel in POLICIES AND PRACTICES FOR STORAGE OF health care facilities is generally limited RECORDS: connection with appeals, special studies by appropriate locking devices and of the civil service and other merit Records are maintained on paper, restricted to authorized VA employees systems, review of rules and regulations, microfilm, electronic media including and vendor personnel. Automated Data investigation of alleged or possible images and scanned documents, or laser Processing (ADP) peripheral devices are prohibited personnel practices, and optical media in the consolidated health generally placed in secure areas (areas such other functions promulgated in 5 record at the health care facility where that are locked or have limited access) U.S.C. 1205 and 1206, or as otherwise care was rendered, in the VA Health or are otherwise protected. Only authorized by law. Data Repository, at Federal Record authorized VA employees or vendor 59. VA may disclose relevant Centers and Cerner Technology Centers. employees may access information in information, including but not limited In most cases, copies of backup the system. Access to file information is to, patient name, address, and Social computer files are maintained at offsite controlled at two levels: the system Security number, to a State prescription locations. Subsidiary record information recognizes authorized employees by a drug monitoring program (PMDP), or is maintained at the various respective series of individually unique similar program, for the purpose of services within the health care facility passwords/codes as a part of each data submitting to or receiving from the (e.g., pharmacy, fiscal, dietetic, clinical message, and the employees are limited program information regarding laboratory, radiology, social work, to only that information in the file that prescriptions to an individual for psychology) and by individuals, is needed in the performance of their controlled substances, as required under organizations, and/or agencies with official duties. Information that is the applicable State law. whom VA has a contract or agreement downloaded and maintained on 60. VA may disclose relevant health to perform such services, as the VA may personal computers must be afforded information to the Centers for Medicare deem practicable. similar storage and access protections as & Medicaid Services (CMS) and/or their POLICIES AND PRACTICES FOR RETRIEVABILITY the data that is maintained in the designee to evaluate compliance with OF RECORDS: original files. Access by remote data Medicare or Medicaid health care Records are retrieved by name, Social users such as Veteran Outreach Centers, standards. Security number, medical record Veteran Service Officers with power of 61. VA may disclose health care number or other assigned identifiers of attorney to assist with claim processing, information to DoD for the purpose of the individuals to whom they pertain. VARO staff for benefit determination VA health care operations as defined in and processing purposes, OIG staff the HIPAA Privacy Rule, 45 CFR parts POLICIES AND PRACTICES FOR RETENTION AND conducting official audits or 160 and 164 and to the Defense Health DISPOSAL OF RECORDS: investigations and other authorized Agency (DHA), as a health care In accordance with the records individuals is controlled in the same provider, for the purpose of DHA heath disposition authority approved by the manner. care operations. Archivist of the United States, paper 3. Access to the VA National Data 62. VA may disclose information from records and information stored on Centers is generally restricted to Center this system to another Federal agency or electronic storage media are maintained employees, custodial personnel, Federal Federal entity, when VA determines for seventy-five (75) years after the last Protective Service, and other security that information from this system of episode of patient care and then personnel. Access to computer rooms is records is reasonably necessary to assist destroyed/or deleted. VHA Records restricted to authorized operational the recipient agency or entity in (1) Control Schedule (RCS 10–1), Chapter 6, personnel through electronic locking

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devices. All other persons gaining the last VA facility where medical care Monroe 36460 (159 Whetstone St., 251– access to computer rooms are escorted. was provided. 743–5861). Information stored in the computer may Oxford 36203 (96 Ali Way Creekside CONTESTING RECORD PROCEDURES: be accessed by authorized VA South, 256–832–4141). employees at remote locations including (See Record Access Procedures Selma 36701 (206 Vaughn Memorial Dr., VA health care facilities, VA Central above.) 334–418–4975). Sheffield 35660 (Florence Shoals Area Office, Veterans Integrated Service NOTIFICATION PROCEDURE: Clinic, 422 DD Cox Blvd., 256–381–9055). Networks (VISN), and OIG Central An individual who wishes to Wiregrass 36362 (301 Andrews Ave., 334– Office and field staff. Access is determine whether a record is being 503–7800). controlled by individually unique maintained in this system under his or Regional Office passwords/codes that must be changed her name or other personal identifier, or Montgomery 36109 (345 Perry Hill Rd., periodically by the employee. wants to review the contents of such 4. Access to the VA Health Data statewide 1–800–827–1000). record, should submit a written request Repository, located at the VA National or apply in person to the last VA health Vet Centers Data Centers, is generally restricted to care facility where care was rendered. Birmingham 35233 (1500 5th Ave. S, 205– Center employees, custodial personnel, Addresses of VA health care facilities 731–0550). Federal Protective Service, and other may be found in VA Appendix 1 of the Mobile 36606 (2577 Government Blvd., security personnel. Access to computer Biennial Publication of Privacy Act 251–478–5906). rooms is restricted to authorized Issuances. All inquiries must reasonably operational personnel through National Cemeteries describe the portion of the medical electronic locking devices. All other Alabama 35115 (731 Middle St., 205–665– record involved and the place and persons gaining access to computer 9039). approximate date that medical care was rooms are escorted. Information stored Fort Mitchell 36856 (553 Hwy. 165, Fort provided. Inquiries should include the in the computer may be accessed by Mitchell, 334–855–2184). patient’s full name, Social Security Mobile 36604 (1202 Virginia St., 850–453– authorized VA employees at remote number, and return address. 4846). locations including VA health care facilities, VA Central Office, VISNs, and EXEMPTIONS PROMULGATED FOR THE SYSTEM: ALASKA OIG Central Office and field staff. None. VA Medical Center Access is controlled by individually HISTORY: Anchorage 99504 (1201 N Muldoon Rd., unique passwords/codes that must be 888–353–7574/907–257–4700). changed periodically by the employee. Last full publication provided in 79 5. Access to records maintained at VA FR 47732 dated August 14, 2014. Clinics Central Office, the VA Boston Appendix 1— VA Facilities Fort Wainwright 99703 (4076 Neeley Rd., Development Center, Chief Information Room 1J–101, 888–353–7574). Office Field Offices, and VISNs is Patients should call the telephone numbers Juneau 99801 (709 W 9th St., Suite 150, restricted to VA employees who have a listed to obtain clinic hours of operation and 888–353–7574). need for the information in the services. Kenai 99669 (240 Hospital Place, Central performance of their official duties. For more information or to search for a Peninsula Hospital, Suite 105, 888–353– facility near you by zip code, visit https:// 7574). Access to information stored in www.va.gov/find-locations. Mat-Su 99654 (865 N Seward Meridian electronic format is controlled by Parkway, Suite 105, 888–353–7574). individually unique passwords/codes. ALABAMA Regional Office Records are maintained in manned VA Medical Centers Anchorage 99508–2989 (2925 De Barr Rd., rooms during working hours. The Birmingham 35233 (700 S. 19th St., 205– statewide 1–800–827–1000). facilities are protected from outside 933–8101 or 800–872–0328). access during non-working hours by the Montgomery 36109–3798 (215 Perry Hill Benefits Office Federal Protective Service or other Rd., 334–272–4670 or 800–214–8387). Juneau 99802 (P.O. Box 20069, 907–586– security personnel. Tuscaloosa 35404 (3701 Loop Rd., East, 7472). 6. Computer access authorizations, 205–554–2000 or 888–269–3045). computer applications available and Tuskegee 36083–5001 (2400 Hospital Rd., Vet Centers used, information access attempts, and 334–727–0550 or 800–214–8387). Anchorage 99508 (4201 Tudor Centre Dr., frequency and time of use are recorded. Clinics Suite 115, 907–563–6966). 7. Access to Cerner Technology Fairbanks 99701 (540 4th Ave., Suite 100, Childersburg 35044 (151 9th Ave., 256– 907–456–4238). Centers is generally restricted to Cerner 378–9026). Kenai 99669 (Red Diamond Ctr., Bldg. F, employees, contractors or associates Columbus 31901 (1310 13th Ave., 706– #4, 43335 Kalifornsky Beach Rd., 907–260– with a Cerner issued ID badge and other 257–7205). 7640). security personnel cleared for access to Bessemer 35022 (975 9th Ave., SW, Suite Wasilla 99654 (851 E West Point Dr., Suite the data center. Access to computer 400 at UAB West Medical Center West 111, 907–376–4318). rooms housing Federal data, hence Bessemer, 205–428–3495). Federal enclave, is restricted to persons Dothan 36301 (2020 Alexander Dr., 334– National Cemeteries Federally cleared for Federal enclave 673–4166). Fort Richardson 99505–5498 (Building Dothan Mental Health Center 36301 (3753 access through electronic badge entry 997, Davis Hwy., 907–384–7075). Ross Clark Cir., Ste. 4, 334–678–1933). Sitka 99835 (803 Sawmill Creek Rd., 907– devices. All other persons, such as Gadsden 35906 (206 Rescia Ave., 256–413– 384–7075). custodians, gaining access to Federal 7154). enclave are escorted. Guntersville 35976 (100 Judy Smith Dr., AMERICAN SAMOA 256–582–4033). RECORD ACCESS PROCEDURE: Huntsville 35801 (301 Governor’s Dr., 256– Clinic Individuals seeking information 535–3100). Pago Pago 96799 (Fiatele Teo Army regarding access to and contesting of VA Jasper 35501 (3400 Highway 78 East, Suite Reserve Bldg., Mailing Address: P.O. Box medical records may write, call, or visit #215, 205–221–7384). 1005, Pago Pago, AS 96799, 684–699–3730).

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Benefits Office Vet Centers Los Angeles 90073 (11301 Wilshire Blvd., Pago Pago 96799 (P.O. Box 1005, 684–633– Phoenix 85012 (77 E. Weldon Ave., Suite 310–478–3711 or 800–952–4852). 5073). 100, 602–640–2981). Sacramento 95655 (10535 Hospital Way, Phoenix-East Valley 85202 (1303 S Mather, 800–382–8387 or 916–843–7000). ARIZONA Menlo Park 94025 (795 Willow Rd., 650– Longmore, Suite 5, Mesa, 480–610–6727). 416–9997). Prescott 86303 (161 S Granite St., Suite B, VA Medical Centers Palo Alto 94304 (3801 Miranda Avenue, Prescott 86313 (500 N Hwy. 89, 928–445– 928–778–3469). 650–493–5000 or 800–455–0057). 4860 or 800–949–1005). Tucson 85719 (3055 N 1st Ave., 520–882– San Diego 92161 (3350 La Jolla Village Tucson 85723 (3601 South 6th Avenue, 0333). Drive, 858–552–8585 or 800–331–8387). 520–792–1450 or 800–470–8262). National Cemeteries San Francisco 94121 (4150 Clement Street, Phoenix 85012 (650 E Indian School Rd., 415–221–4810 or 877–487–2838). 602–277–5551 or 800–554–7174). Nat. Mem. Cem. of AZ 85024 (23029 N Cave Creek Rd., Phoenix, 480–513–3600). Clinics Clinics Prescott 86301 (500 Hwy. 89 N, 480–513– Anaheim 92801 (2569 West Woodland Dr., Anthem 85086 (41810 North Venture Dr., 3600). 714–763–5300). Building B, 623–249–2300). ARKANSAS Arcadia 91006 (7 North Foothill Blvd., Casa Grande 85122 (1876 East Savin Dr., Suite D, 818–672–2800). Suite 15, Bldg. A, 520–836–2536). VA Medical Centers Atwater 95301–5140 (3605 Hospital Road, Chinle 86503 (Highway 191 and Hospital Fayetteville 72703 (1100 N College Ave., Suite D, 209–381–0105). Dr., 928–674–7675 479–443–4301 or 800–691–8387). Auburn 95603 (11985 Heritage Oaks Place, Cottonwood 86326 (501 South Willard St., Little Rock 72205 (4300 West 7th St., 501– Suite 100, 530–889–0872). 928–649–1532). 257–1000). Bakersfield 93301 (1801 Westwind Dr., Flagstaff 86001 (1300 West University North Little Rock 72114–1706 (2200 Fort 661–632–1800). Ave., Suite 200, 928–226–1056). Roots Dr., 501–257–1000). Blythe 92225 (1273 West Hobson Way, Gilbert 85297 (3285 South Val Vista Dr., 760–921–1224). 480–397–2800). Clinics Brawley 92227 (Imperial Valley, 528 G St., Globe 85501 (5860 S Hospital Dr., Suite 11, Conway 72032 (1520 East Dave Ward Dr., 760–344–9085). 928–425–0027). 501–548–0500). Capitola 95010–3906 (1350 N 41st St., Green Valley 85614 (380 W Hermosa Drive, El Dorado 71730 (1702 North West Ave., Suite 102, 831–464–5519). #140, 520–399–2291). 870–875–5900). Chico 95928 (1601 Concord Ave., 530– Holbrook 86025 (33 West Vista Dr., 928– Ft. Smith 72917 (1500 Dodson Ave., 479– 879–5000). 524–1050). 441–2600). Chula Vista 91911 (835 3rd Ave., Suite 133 Kayenta 86033 (U.S. Hwy. 160, 928–445– Harrison 72601 (814 U.S. Hwy. 62–65, and 112, 619–409–1600). 4860 ext. 3392). North Suite 8, 870–704–6300). Clearlake 95422 (15145 Lakeshore Dr., Kingman 86401 (2668 Hualapai Mtn. Rd., Hot Springs 71901 (177 Sawtooth Oak St., 707–995–7200). Commerce 90022 (East Los Angeles, 5426 928–718–7300). 501–520–6253). E Olympic Blvd., 323–725–7372). Lake Havasu City 86403 (2035 Mesquite, Mena 71953 (300 Morrow St. South, 501– Corona 92881 (2045 Compton Ave., Bldg. Suite E, 928–505–7100). 609–2700). 7, Suite 101, 951–817–8820). Page 86040 (801 N Navajo Dr., Suite B, Mountain Home 72653 (759 Highway 62 E El Centro 92243 (1115 South 4th St., 760– 928–645–4966). Twin Lakes Plaza, Suite 331, 870–594–8387). 352–1506). Payson 85541 (903 East Highway 260, Ozark 72949 (2713 West Commercial St., Escondido 92025 (815 E Pennsylvania Suite 2, 928–472–3148). 877–760–8387). Ave., 760–466–7020). Phoenix Midtown 85015 (5040 North 15th Pine Bluff 71603 (4747 Dusty Lake Dr., Eureka 95503 (930 West Harris St., 707– Ave., 602–234–7080). 870–541–9300). Phoenix Southeast 85747 (7395 South 269–7500). Russellville 72801 (3106 West 2nd Ct., Houghton Rd. Suite 129, 520–664–1831). Fairfield 94535 (103 Bodin Cir., Bldg. 778 479–880–5100). Phoenix Southwest 85073 (9253 West Travis Air Force Base, 707–437–1800). Searcy 72143 (1120 South Main St., 501– Thomas Rd., Suite 400, 623–772–4000). Fremont 94538 (39199 Liberty St., Bldg. B, 207–4700). Phoenix Thunderbird 85021 (9424 North 510–791–4000). 25th Ave., 602–633–6900). Regional Office French Camp 95231 (Stockton Clinic, 7777 South Freedom Dr., 209–946–3400). Pinal 85122 (1179 East Cottonwood Lane, North Little Rock 72114 (2200 Fort Roots Gardena 90247 (1251 Redondo Beach 520–629–4801). Dr., Bldg. 65, statewide 1–800–827–1000). Polacca 86042 (Hwy. 264, Mile Post 388, Blvd., 3rd Floor, 310–851–4705). 928–283–4465). Vet Center Laguna Hills 92653 (23719 Moulton Parkway, 949–587–3700). Safford 85546 (355 North 8th Ave., 928– North Little Rock 72114 (201 W Broadway, Lancaster 93535 (Antelope Valley, 340 East 428–8010). Suite A, 501–324–6395). Scottsdale 85259 (11390 East Via Linda Ave. I, Suite 108, 661–729–8655). Rd., Suite 105, 480–579–2200). National Cemeteries Long Beach 90806 (Villages at Cabrillo Show Low 85901 (5171 Cub Lake Rd., Fayetteville 72701 (700 Government Ave., 2001 River Ave., Bldg. 28, 562–388–8000). Suite C380, 928–532–1069). 479–444–5051). Los Angeles 90012 (351 East Temple St., Sierra Vista 85635 (157 N Coronado Dr., Fort Smith 72901 (522 Garland Ave., 479– 213–253–5000). 520–629–4802). 783–5345). Los Angeles 90073 (West LA Ambulatory Surprise 85374 (13985 West Grand Ave., Little Rock 72206 (2523 Confederate Blvd., Care, 11301 Wilshire Blvd., 310–268–3526). Suite 101, 623–251–2884). 501–324–6401). Lynwood 90262 (3737 Martin Luther King Tucson Northwest 85741 (2945 West Ina Blvd., Suite 515, 310–537–6825). Rd., 520–219–2418). CALIFORNIA Mare Island 94592 (201 Walnut Ave., Bldg. Tuba City 85045 (167 N Main St., 928– 201, 707–562–8200). VA Medical Centers 283–4465). Martinez 94553 (150 Muir Rd., 925–372– Yuma 85364 (3111 South 4th Ave., 928– Fresno 93703 (2615 E Clinton Ave., 559– 2000). 317–9973). 225–6100 or 888–826–2838). Marina 93933 (201 9th St., 831–884–1000). Livermore 94550 (4951 Arroyo Rd., 925– McClellan Park 95652 (5342 Dudley Blvd., Regional Office 373–4700). Bldg. 88, 916–561–7400). Phoenix 85012 (3333 N. Central Ave., Loma Linda 92357 (11201 Benton St., 909– Merced 95340 (340 East Yosemite Ave., statewide 1–800–827–1000)—Fiduciary 825–7084 or 800–741–8387). Suite D, 209–381–0105). Duties for Arizona, California, New Mexico, Long Beach 90822 (5901 E 7th St., 562– Modesto 95355 (1225 Oakdale Rd., 209– Nevada (1–888–869–0194). 826–8000 or 888–769–8387). 557–6200).

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Monterey 93955 (3401 Engineer Lane, Vista 92083 (1840 West Drive, 760–643– National Cemeteries Seaside, 831–883–3800). 2000). Bakersfield 93203 (30338 East Bear Murietta 92563 (28078 Baxter Rd., Suite Yreka 96097 (101 East Oberlin Rd., 530– Mountain Blvd., 661–867–2253 or 866–632– 540, 951–290–6500). 841–8500). 1845). North Hills 91343 (Sepulveda Clinic and Yuba City 95991 (425 Plumas Blvd., 530– Fort Rosecrans 92106 (P.O. Box 6237, Point Nursing Home, 16111 Plummer St., 818–891– 751–4500). Loma, San Diego, 619–553–2084). 7711 or 800–516–4567). Golden Gate 94066 (1300 Sneath Ln., San Oakhurst 93644 (40597 Westlake Dr., 559– Regional Offices Bruno, 650–589–7737). 683–5300). Los Angeles 90024 (Fed. Bldg., 11000 Los Angeles 90049 (950 South Sepulveda Oakland 94612 (525 21st St., 510–587– Wilshire Blvd., serving counties of Inyo, Blvd., 310–268–4675). 3400). Miramar 92122 (5795 Nobel Drive, 858– Oakland 94612 (2221 Martin Luther King Kern, Los Angeles, San Bernardino, San Luis Obispo, Santa Barbara and Ventura, 658–7360). Jr. Way, 510–267–7800). Riverside 92518 (22495 Van Buren Blvd., Oceanside 92056 (1300 Rancho del Oro statewide 1–800–827–1000). 951–653–8417). Dr., 760–643–2000). Oakland 94612 (1301 Clay St., Rm. 1300 Sacramento Valley VA 95620 (5810 Oxnard 93030 (1690 Universal Circle Dr., North, serving all CA counties not served by Midway Rd., Dixon, 707–693–2460). 805–204–9135). the Los Angeles, San Diego, or Reno VA San Francisco 94129 (1 Lincoln Blvd., Palm Desert 92211 (41–990 Cook St., Bldg. Regional Offices, 1–800–827–1000). Presidio of San Francisco, 650–589–7737). F, Suite 1004, 760–341–5570). San Diego 92108 (8810 Rio San Diego Dr., San Joaquin Valley 95322 (32053 West Rancho Cucamonga 91730 (8599 Have serving Imperial, Orange, Riverside and San McCabe Rd., Santa Nella, 209–854–1040). Ave., Suite 102, 909–946–5348). Diego, statewide 1–800–827–1000). The Redding 96002 (351 Hartnell Ave., 530– counties of Alpine, Lassen, Modoc, and COLORADO 226–7555). Mono are served by the Reno, NV, Regional Medical Centers Redlands 92373 (26001 Redlands Blvd., Office. 909–825–7084). Aurora 80045–7211 (1700 North Wheeling Sacramento 95655 (Mental Health Clinic at Benefits Office Street, 303–399–8020). Mather, 10633 Grissom Rd., 800–382–8387 or Sacramento 95827 (10365 Old Placerville Grand Junction 81501–6428 (2121 North 916–366–5420). Rd., 916–364–6500). Avenue, 970–242–0731). Sacramento 95652 (McClellan Dental Domiciliaries Clinic, 5401 Arnold Ave., 800–382–8387 or Vet Centers 916–561–7800). Denver 80220 (1055 Clermont Street, 303– Anaheim 92805 (859 S Harbor Blvd., 714– Sacramento 95652 (McClellan Outpatient 399–8020). Clinic, 5342 Dudley Blvd., 800–382–8387 or 776–0161). 916–561–7400). Chico 95926 (280 Cohasset Rd., Suite 100, VHA Office of Community Care/Health San Bruno 94066 (1001 Sneath Lane, Suite 530–899–8549). Administration Center 300, 650–615–6000). Concord 94520 (1899 Clayton Rd., Suite Denver 80209 (3773 Cherry Creek North San Diego 92108 (Mission Valley Clinic, 140, 925–680–4526). Dr., 303–331–7500 or 800–733–8387). 8810 Rio San Diego Dr., 619–400–5000). Corona 92879 (800 Magnolia Ave., 110, Clinics San Diego 92108 (Rio Clinic, 8989 Rio San 951–734–0525). Diego Dr., Suite 360, 619–228–8000). East Los Angeles 90022 (5400 E. Olympic Alamosa 81101–8548 (622 Del Sol Drive, San Francisco 94107 (Downtown Clinic, Blvd., 140, 323–728–9966). 719–587–6800 or 1–866–659–0930). 401 3rd St., 415–551–7300). Eureka 95501 (2830 G St., Suite A, 707– Aurora 80012–3697 (13701 E Mississippi San Gabriel 91776 (Pasadera, 420 W. Las 444–8271). Ave., Suite 200, 303–398–6340). Tunas Drive, 626–289–5973). Fresno 93726 (3636 N 1st St., Suite 112, Aurora 80012–5689 (14400 E Jewell Ave., San Jose 95138 (5855 Silver Creek Valley 559–487–5660). 303–283–5400). Burlington 80807–1756 (1177 Rose Place, 408–574–9100). Gardena 90247 (1045 W Redondo Beach Avenue, 719–346–5239). San Luis Obispo 93401 (Pacific Med. Plaza, Blvd., 150, Gardena, 310–767–1221). 1288 Morro St., Ste. 200, 805–543–1233). Colorado Springs 80907–4094 (3141 West Los Angeles 90230 (5730 Uplander Santa Ana 92705 (1506 Brookhollow Dr., Centennial Blvd., 719–327–5660). Way, Suite 100, Culver City, 310–641–0326). Suite 100, 714–825–3500). Craig 81625–2945 (1111 West Victory Way, Santa Barbara 93110 (4440 Calle Real, 805– Modesto 95351 (1219 N Carpenter Rd., #11 Centennial Mall, Suite 116, 970–824–6712). 683–1491). & 12, 209–527–1359 or 209–527–5961). Denver 80220–3901 (4545 East 9th Ave., Santa Fe Springs 90670 (10330 Pioneer Oakland 94612 (1504 Franklin St., 200, Physician Office Bldg. 1, Suite 010, 303–327– Blvd., Suite 180, 562–347–2200). 510–763–3904). 7000). Santa Maria 93454 (1550 East Main St., Redwood City 94062 (2946 Broadway St., Denver 80205–3540 (3836 York St., 805–354–6000). 650–299–0672). Community Resource & Referral Center, 720– Santa Rosa 95403 (3841 Brickway Blvd., Rohnert Park 94928 (6225 State Farm Dr., 501–3367). 707–569–2300). Suite 101, 707–586–3295). Durango 81301–5025 (1970 East Third Sepulveda 91343 (16111 Plummer St., Sacramento 95825 (1111 Howe Ave., Suite Ave., Suite 102, 970–247–2214). 818–891–7711). 390, 916–566–7430). Fort Collins 80526–8108 (2539 Research Sonora 95370 (13663 Mono Way, 209–588– San Bernardino 92408 (155 West Blvd., 970–224–1550). 2600). Hospitality Lane, Suite 140, 909–890–0797). Glenwood Springs 81601–4181 (2425 Stockton 95231 (7777 South Freedom Rd., San Diego 92103 (2900 6th Ave., 619–294– South Grand Ave., Suite 101, 970–945–1007). Golden 80401–6002 (1020 Johnson Rd., 209–946–3400). 2040). 303–914–2680). Sun City 92586 (28125 Bradley Road, Suite San Francisco 94102 (505 Polk St., 415– La Junta 81050–2772 (1100 Carson Ave., 130, 951–672–1931). 441–5051). Tulare 93274 (1050 N Cherry St., 559–684– Suite 204, 719–383–5195). San Jose 95112 (278 N 2nd St., 408–993– 8703). Lakewood 80227–5006 (7350 West 0729). Ukiah 95482 (630 Kings Court, 707–468– Eastman Place, 720–376–6100). 7700). San Marcos 92069 (1 Civic Center Dr., Lamar 81052–9525 (1401 South Main St., Upland 91786 (1238 E Arrow Highway, No. Suite 140, 760–744–6914). Suite B, 719–336–0315). 100, 909–946–5348). Santa Cruz 95010 (1350 41st Ave., Suite Loveland 80538–8852 (5200 Hahns Peak Vallejo 94592 (Mare Island Clinic, 201 102, 831–464–4575). Dr., 970–962–4900). Walnut Ave., 800–382–8387 or 707–562– Sepulveda 91343 (9737 Haskell Ave., 818– Montrose 81401–3651 (154 Colorado Ave., 8200). 892–9227). Suite A, 970–249–7791). Victorville 92392 (12138 Industrial Ventura 93001 (790 E Santa Clara, Suite Pueblo 81008–1667 (4776 Eagleridge Boulevard, Suite 120, 760–951–2599). 100, 805–585–1860). Circle, 719–553–1000).

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Salida 81201–9669 (920 Rush Dr., 719– Regional Office Gainesville 32608–9605 (5415 Southwest 539–8666). Wilmington 19805 (1601 Kirkwood Hwy., 64th St., 352–338–4900, x161200). Sterling 80751–2345 (Northeastern Junior local 302–994–2511). Gainesville 32601–4034 (620 Northwest College, 100 College Dr., 307–778–755, 16th St., Suite I and II, 352–548–6000). x3816). Vet Center Gainesville 32609–3568 (825 Northwest 23rd Ave., 352–548–6000 x215263). Regional Office Wilmington 19805 (1601 Kirkwood Hwy., Bldg. 3, 302–994–1660). Gainesville 32606–5010 (3401 Northwest Denver 80225 (Mailing Address P.O. Box 98th St., 352–376–1611, x137090). 25126. Physical Address 155 Van Gordon St., DISTRICT OF COLUMBIA Hollywood 33021–1811 (3702 Washington Lakewood, 80228, statewide 1–800–827– VA Medical Center St., Suite 201, 954–986–1811). 1000)—Fiduciary Duties for Alaska, Hollywood 33024–2776 (7369 Sheridan St., Colorado, Idaho, Montana, Oregon, Utah, Washington 20422–0001 (50 Irving Street Suite 102, 954–894–1668). Washington, Wyoming (1–888–349–7541). NW, 202–745–8000 or 888–553–0242). Homestead 33030–4443 (950 Krome Avenue, Suite 401, 305–248–0874). Vet Centers Clinic Jacksonville 32209–6525 (1536 North Boulder 80302 (2336 Canyon Blvd., Suite Washington 20032–3428 (820 Chesapeake Jefferson St., 877–870–5048 or 904–475– 103, 303–440–7306). Street SE, 202–745–8685). 5800). Colorado Springs 80903 (416 E. Colorado Washington 20018–2000 (1500 Franklin Jacksonville 32216–4312 (3901 University Ave., 719–471–9992). Street NE, Community Resource & Referral Boulevard South, 904–475–5800). Denver 80230 (7465 E First Ave., Ste. B, Center, 202–636–7660). Jacksonville 32216–6185 (6900 Southpoint 303–326–0645). Regional Office Dr. North, 904–470–6900). Grand Junction 81505 (2472 F. Rd., Unit Key Largo 33037–3010 (105662 Overseas 16, 970–245–4156). Washington, DC 20421 (1722 I St. NW, Highway, 305–451–0164). local, 1–800–827–1000). National Cemeteries Key West 33040–4536 (1300 Douglas Vet Center Circle, Building L–15, 305–293–4863). Fort Logan 80236 (4400 W Kenyon Ave., Kissimmee 34741–2342 (2285 North Denver, 303–761–0117). Washington, DC 20011 (1253 Taylor St., Central Ave., 407–518–5004). Fort Lyon 81504 (15700 County Road HH, NW, 202–726–5212). Lake City 32025–1588 (484 South West Las Animas, 303–761–0117). FLORIDA Commerce Dr., Westfield 2 Plaza, Suite 140, Pikes Peak 80925 (10545 Drennan Road, 386–754–3000). 719–216–1025). VA Medical Centers Lakeland 33811–1442 (4237 South Pipkin CONNECTICUT Bay Pines 33744–8200 (10000 Bay Pines Rd., 863–701–2470). Blvd., 727–398–6661 or 888–820–0230). Lecanto 34461 (2804 West Marc Knighton VA Medical Centers Gainesville 32608–1135 (1601 SW Archer Court, Suite A, 352–746–8000). Newington 06111–2631 (555 Willard Ave., Rd., 352–376–1611 or 800–324–8387). Marianna 32446–6802 (4970 Highway 90, 860–666–6951). Lake City 32025–5808 (619 S. Marion 850–718–5620 or 866–512–8387). West Haven 06516–2770 (950 Campbell Avenue, 386–755–3016 or 800–308–8387). Miami 33135–2209 (1492 West Flagler St., Avenue, 203–932–5711). Miami 33125–1624 (1201 NW 16th St., Suite 102, 305–541–5864). 305–575–7000 or 888–276–1785). Naples 34102–5402 (800 Goodlette Road Clinics Orlando 32827–5812 (13800 Veterans Way, North, Suite 120, 239–659–9188). Danbury 06810–5000 (7 Germantown Rd., 407–631–1000). New Port Richey 34654–3419 (9912 Little Suite 2B, 203–798–8422). Tampa 33612–4745 (13000 Bruce B. Downs Road, 727–869–4100). New London 06320–4956 (4 Shaw’s Cove, Blvd., 813–972–2000 or 888–716–7787). New Port Richey 34654–5403 (7701 Little 1st Floor, Suite 101, 860–437–3611). West Palm Beach 33410–6400 (7305 N. Road, 727–869–4100). Stamford 06905–5315 (1275 Summer St., Military Trail, 561–422–8262 or 800–972– New Port Richey 34668–2213 (110210 U.S. Suite 102, 203–325–0649). 8262). Highway 19 North, Suite 102, 727–863– Waterbury 06706–1113 (95 Scovill St., 1035). 203–465–5292). Clinics New Port Richey 34653–7027 (5138 Deer West Haven 06516–2043 (114 Orange Ave., Boca Raton 33433–2300 (901 Meadows Park Blvd., Suite 101 and 102, 727–372– 203–479–8000). Rd., 561–416–8995). 1481). Willimantic 06226–1940 (1320 Main St., Bradenton 34208–5526 (5520 State Route Ocala 34470–6856 (1515 East Silver 860–450–7583). 64, Suite 101, 941–721–0649. Springs Blvd., Suite 226, 352–369–3320). Winsted 06908–1140 (115 Spencer St., Brooksville 34613–6001 (14540 Cortez Ocala 34474–7843 (3307 Southwest 26th 860–738–6985). Blvd., Suite 108, 352–597–8287). Ave., 352–861–3940). Clermont 34711–1968 (805 Oakley Seaver Okeechobee 34972–1936 (1201 North Regional Office Drive, (352–536–8200 or 800–645–6895). Parrot Avenue, 863–824–3232). Hartford (Bldg. 2E Rm., 5137, 555 Willard Cape Coral 33909–5422 (2489 Diplomat Orlando 32803–8208 (5201 Raymond Ave., Newington, 06111–2693, statewide 1– Parkway East, 239–652–1800). Street, 407–646–5500). 800–827–1000). Daytona Beach 32114–1495 (551 National Palatka 32177–2449 (400 North State Road Vet Centers Health Care Dr., 386–323–7500). 19, Suite 48, 386–329–8800). Daytona Beach 32114–1230 (1821 Business Palm Harbor 34684–1908 (35209 U.S. Wethersfield 06109 (30 Jordan Lane, 860– Park Blvd., 386–366–6700). Highway 19 North, 727–734–5276). 563–2320). Deerfield Beach 33442–7690 (2100 SW Panama City Beach 32408–7186 (2600 Norwich 06360 (2 Cliff St., 860–887–1755). 10th St., 954–570–5572). Veterans Way, 850–636–7000 or 888–231– West Haven 06516 (141 Captain Thomas Delray Beach 33445–6597 (4800 Linton 5047, x7331). Blvd., 203–932–9899). Blvd., Building E, Suite E 300, 561–495– Panama City Beach 32407–2512 (140 DELAWARE 1973). Richard Jackson Blvd., 850–636–7000). Deltona 32725–6386 (1200 Deltona Pensacola 32537–1000 (790 Veterans Way, VA Medical Center Boulevard, Suite 41–47, 386–575–5000). 850–912–2000). Wilmington 19805–4917 (1601 Kirkwood Elgin AFB 32542–1038 (100 Veterans Way, Perry 32347–2117 (1224 North Peacock Highway, 302–994–2511 or 800–461–8262). 850–609–2600). Ave., 850–223–8387). Fort Pierce 34947–4711 (1901 South 25th Port Charlotte 33952–9254 (4161 Tamiami Clinics St., Suite 103, 772–595–5150). Trail, Suite 401, 941–235–2710). Dover 19904–6930 (1198 South Governors Gainesville 32608–9608 (5571 Southwest Port Orange 32129–2319 (3731 South Ave., Suite 201, 800–461–8262, x2400). 64th St., 352–337–4900). Clyde Morris Blvd., 386–763–8300). Georgetown 19947–2300 (21748 Roth Ave., Gainesville 32608–9608 (5533 Southwest Port Saint Lucie 34986–3496 (128 800–461–8262, x2300). 64th St., 352–274–5967). Southwest Chamber Court, 772–878–7876).

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Riverview 33579–7210 (12920 Palm Beach 33461 (2311 10th Ave., North East Point 30344–6948 (1513 Cleveland Summerfield Crossing Blvd., 813–998–8600). 13, 561–585–0441). Ave., Buggy Works Office Park, Building 300, Sarasota 34233–1540 (5682 Bee Ridge Rd., Pensacola 32531 (4501 Twin Oaks Dr., 404–329–2222). Suite 100, 941–371–3349). 850–456–5886). East Point 30344–6948 (2675 North Martin Sebring 33870–2117 (5901 U.S. Highway Sarasota 34231 (4801 Swift Rd., 941–927– St., South Central Station, Building 700, 404– 27 South, 863–471–6227). 8285). 321–6111, x5685). St. Augustine 32086–5134 (195 Southpark St. Petersburg 33713 (2880 1st Ave., N, Flowery Branch 30542–2816 (4175 Tanners Blvd., 904–829–0814 or 866–401–8387). 727–893–3791). Creek Drive, 404–728–8210). St. Petersburg 33705–1214 (840 Dr. MLK Jr. Tallahassee 32303 (548 Bradford Rd., 850– Fort Benning 31905–5602 (6635 Bass Road, Street North, 727–502–1700). 942–8810). Bldg. 9214, 706–257–7200). Stuart 34997–5059 (3501 Southeast Tampa 33604 (8900 N Armenia Ave., Ste. Hinesville 31313–2804 (500 East Willoughby Boulevard, 772–288–0304). 312, 813–228–2621). Oglethorpe Highway, 912–408–2900). Sunrise 33351–4325 (9800 West Jasper 30143–1926 (934 East Church St., Commercial Blvd., 954–475–5500). National Cemeteries 404–321–6111. Kathleen 31047–5400 (2370 South Houston Tallahassee 32311–6144 (2181 East Orange Barrancas 32538–1054 (80 Hovey Rd., Lake Road, 478–224–1309). Avenue, 850–878–0191 or 800–541–8387). Naval Air Station, Pensacola, 850–453–4846). Lawrenceville 30043–5937 (1970 Riverside Tampa 33637–1003 (13515 Lake Terrace Bay Pines 33504–0477 (10000 Bay Pines Pkwy, 404–321–6111). Lane, 813–998–8000). Blvd., North Bay Pines, 727–398–9426). Lawrenceville 30046–8766 (455 Philip Cape Canaveral 32754 (5525 U.S. Highway Tampa 33612–9998 (14014 North 46th Blvd., Suite 200, 404–329–2222). 1, 321–383–2638). Street, 813–972–2000, x6291). Macon 31220–8118 (5566 Thomaston Tampa 33617–3442 (10770 North 46th St., Florida 33513 (6502 SW 102nd Ave., Road, 478–476–8868). Suite 200, 813–972–7551). Bushnell, 352–793–7740). Marietta 30062–2957 (2217 Roswell Road, Tampa 33613–2755 (14517 Bruce B. Downs Jacksonville 32202 (300 N Hogan St.). Suite 114, 404–321–6111). Blvd., 813–228–2761, x7122). St. Augustine 32084 (104 Marine St., 352– Milledgeville 31061–4807 (2249 Vinson Tampa 33612–9211 (12210 Bruce B. Downs 793–7740). Highway Southeast, 478–414–4540). Blvd., 813–972–2000, x5801. Sarasota 34241 (9810 State Road 72, 877– Newnan 30265–2392 (39–A Oak Hill Ct., Tavares 32778–4305 (1390 East Burleigh 861–9840). 404–329–2222). Blvd., 352–253–2900). South Florida 33467 (6501 South State Rome 30161–7201 (30 Chateau Drive The Villages 32162–5884 (8900 Southeast Road 7, Lake Worth, 561–649–6489). Southeast, 404–329–2222). 165th Mulberry Ln., 877–649–0024 or 352– Tallahassee 32311 (5015 Apalachee Savannah 31419–1618 (1170 Shawnee 674–5000). Parkway, 850–402–8941). Street, (912–920–0214). Vero Beach 32960–5690 (372 17th Street, St. Marys 31558–3843 (2603 Osbourne GEORGIA 772–299–4623). Road, Kings Bay Village, Ste E, 912–510– Viera 32940–8007 (2900 Veterans Way, Medical Centers 3420). 321–637–3788). Smyrna 30080–8581 (2400 Herodian Way Augusta 30904–6258 (One Freedom Way, Winter Park 32792–5313 (925 South Southeast, 404–321–6111). 706–733–0188 or 800–836–5561). Semoran Blvd., Suite 112, 114 and 120, 407– Statesboro 30458–4828 (658 Northside 621–2600). Augusta 30904–2608 (950 15th St., 706– Drive East, Suite B, 912–871–8719). Zephyrhills 33542–6648 (6937 Medical 733–0188). Stockbridge 30281–5038 (175 Medical View Ln., 813–780–2550) Decatur 30033–4004 (1670 Clairmont Road, Blvd., 404–329–2222). 404–321–6111). Tifton 31794–3441 (1824 Ridge Avenue Regional Office Dublin 31021–3620 (1826 Veterans Blvd., North, 229–391–6080). St. Petersburg 33708 (mailing address: P.O. 478–272–1210 or 800–595–5229). Valdosta 31602–1890 (2841 North Box 1437, 33731; physical address: 9500 Bay Clinics Patterson Street, 229–293–0132). Pines Blvd., statewide 1–800–827–1000)— Waycross 31501–8016 (515B City Fiduciary Duties for Alabama, Florida, Albany 31704–1130 (814 Radford Blvd., c/ Boulevard, City Square Plaza, 877–843–6570, Mississippi, Puerto Rico, U.S. Virgin Islands o Naval Branch Health Clinic, Building 700, x724400). (1–888–611–8916). 229–446–9000). Athens 30601–6352 (9249 Highway 29 Regional Office Benefits Offices South, 706–733–0188, x5511). Decatur 30033 (1700 Clairmont Rd., Fort Lauderdale 33301 (VR&E, 299 East Atlanta 30310–5110 (1701 Hardee Ave., statewide 1–800–827–1000)—Fiduciary Broward Blvd., Room 324, 1–800–827–1000). Southwest, Community Resource & Referral, Duties for Georgia, North Carolina, South Jacksonville 32256 (VR&E, 7825 404–321–6111, x 2222). Carolina, Tennessee (1–888–768–2132). Baymeadows Way, Suite 120–B, 1–800–827– Atlanta 30345–2914 (2309 Parklake Dr., Vet Centers 1000). Northeast, 404–321–6111). Orlando 32801 (1000 Legion Pl., VRE-Suite Atlanta 30345–2739 (2296 Henderson Mill Atlanta 30324 (1440 Dutch Valley Place, 1500, C&P-Suite 1550, 1–800–827–1000). Road, Suite 402, 404–321–6111). Suite G, 404–347–7264). Pensacola 32533–7492 (C&P, 312 Kenmore Austell 30106–6828 (2041 Mesa Valley Macon 31201 (750 Riverside Dr., 478–272– Rd., Rm. 1G253, 1–800–827–1000). Way, Suite 185, 404–329–2222). 1210 ext. 3883/4). West Palm Beach 33410 (C&P, 7305 North Blairsville 30512–8599 (1294 Highway 515, Savannah 31406 (8110A White Bluff Rd., Military Tr., Suite 1A–167, 1–800–827– East, Suite 100, 404–321–6111). 912–652–4097). Brookhaven 30329–1044 (3101 Clairmont 1000). National Cemeteries Road Northeast, 404–321–3111). Vet Centers Brunswick 31525–7932 (1111 Glynco Georgia 30114 (2025 Mt. Carmel Church Ft. Lauderdale 33304 (713 NE 3rd Ave., Parkway, Bldg. 2, Suite 200, 912–261–2355 Lane, Canton, 866–236–8159). 954–356–7926). or 800–595–5229). Marietta 30060 (500 Washington Ave., Gainesville 32607 (105 NW 75th St., Suite Carrollton 30117–2425 (180 Martin Dr., 866–236–8159). 2, 352–331–1408). 678–423–4970). GUAM Jacksonville 32202 (300 East State St., 904– College Park 30349–6055 (1800 Phoenix 232–3621). Blvd., Suite 100, 404–321–6111). Clinic Melbourne 32935 (2098 Sarno Rd., 321– Columbus 31901–2335 (1310 13th Ave., Agana Heights 96910–6427 (498 Chalan 254–3410). 706–257–7205). Palasyo, 671–475–5760). Miami 33122 (8280 NW 27th St., Suite 511, Covington 30014–3805 (10155 Eagle Drive, 305–859–8387). 404–321–6111). Benefits Office/Vet Center Orlando 32822 (5575 S. Semoran Blvd., Decatur 30030–2115 (253 North Arcadia Hagatna 96910 (Reflection Center, #201, Suite 36, 407–857–2800). Ave., 404–321–6111). 222 Chalan Santo Papa St., 671–472–7161).

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HAWAII Salmon 83467 (705 Lena Street, 208–756– McHenry 60050 (3715 Municipal Drive, 8515). 815–759–2306). Medical Center Sandpoint 83864 (420 North 2nd Avenue, Mt. Vernon 62864 (4105 North Water Honolulu 96819–1522 (459 Patterson Road, Suite 200, 208–263–0450). Tower Place, 618–246–2910). E Wing, 808–433–0600 or 800–214–1306). Twin Falls 83301 (260 2nd Avenue East, North Aurora 60542 (161 South 208–732–0959). Lincolnway, 630–859–2534). Clinics Oak Lawn 60453 (10201 South Cicero, Ewa Beach 96706 (91–2135 Fort Weaver Regional Office 708–499–3675). Road, Suite 501, 808–214–1306). Boise 83702 (805 W Franklin St., Peoria 61615 (7717 North Orange Prairie Hilo 96720 (1285 Waianuenue Avenue, statewide, 1–800–827–1000). Road, 309–589–6800). Suite 211, 808–935–3781). Peru 61354 (4461 North Progress Blvd., Vet Centers Honolulu PTSD 96819 (3375 Koapaka 815–223–9678). Street, Suite I–560, 808–566–1546). Boise 83705 (5440 Franklin Rd., Suite 100, Quincy 62301 (6020 Broadway, 217–224– Kahului 96732 (203 Ho1ohana Street, Suite 208–342–3612). 3366). 303, 808–871–2454). Pocatello 83201 (1800 Garrett Way, 208– Rockford 61107 (816 Featherstone Road, Kailua-Kona 96740 (35–377 Hualalai Road, 232–0316). 815–227–0081). 808–329–0774). National Cemetery Shiloh 62269 (1190 Fortune Blvd., 314– Kaunakakai 96748 (280 Home Olu Place, 286–6988). 808–553–3191). Snake River Canyon 83316 (1585 East Elm Springfield 62703 (5850 South 6th Street, Lanai City 96783 (628–B Seventh Street, Street (E 4150 N), 208–732–7499). Suite A, 217–529–5046). 808–565–6423). ILLINOIS Sterling 61081 (406 Avenue C, 815–632– Lihue 96766 (4485 Pahe1e Street, Suite 150, 6200). VA Medical Centers 808–246–0497). Regional Office Chicago 60612 (820 South Damen Avenue, Regional Office 312–569–8387 or 888–569–5282). Chicago 60612 (2122 W Taylor St., Honolulu 96819–1522 (459 Patterson Rd., Danville 61832–5198 (1900 East Main statewide 1–800–827–1000). E Wing. Mailing address: P.O. Box 29020, Street, 217–554–3000). Vet Centers Honolulu, HI 96820) (toll-free from Hawaii, Hines 60141 (5000 South 5th Avenue, 708– Guam, Saipan, Rota and Tinian, 1–800–827– 202–8387). Chicago 60620 (7731 S Halsted St., Suite 1000; toll-free from American Samoa, 1–877– Marion 62959 (2401 West Main Street, 200, 773–962–3740). 899–4400)—Fiduciary Duties for Hawaii, 618–997–5311). Chicago Heights 60411 (1600 S Halsted St., Guam, American Samoa, Commonwealth of North Chicago 60064 (3001 Green Bay 708–754–0340). the Northern Marianas (1–808–433–0481). Road, 847–688–1900). East St. Louis 62203 (1265 N 89th St., Suite 5, 618–397–6602). VR&E Benefits Offices Clinics Evanston 60202 (565 Howard St., 847–332– Hilo 96720 (1285 Waianuenue, 2nd Floor, Bourbonnais 60914 (581 William Latham 1019). 808–935–6691). Drive, Suite 301, 815–932–3823). Moline 61265 (1529 46th Ave., 6, 309–762– Kahului 96732 (203 Ho1ohana St., 808– Carbondale 62901 (1130 East Walnut 6954). 873–9426). Street, 618–351–1031). Oak Park 60302 (155 S Oak Park Blvd., Chicago 60620 (7731 South Halsted Street, 708–383–3225). Vet Centers 773–962–3700). Peoria 61603 (3310 N Prospect Rd., 309– Hilo 96720 (120 Pu1uhonu St., Suite 2, Chicago 60611 (211 East Ontario Street, 671–7300). 808–969–3833). 12th Floor, 312–469–4850). Springfield 62702 (624 S 4th St., 217–492– Honolulu 96814 (1680 Kapiolani Blvd., Chicago Heights 60411 (30 E. 15th Street, 4955). Suite F.3, 808–973–8387). Suite 314, 708–754–8880). National Cemeteries Kailua-Kona 96740 (Hale Kui Plaza, Suite Decatur 62522 (792 North Sunnyside Road, 207, 73–4976 Kamanu St., 808–329–0574). 217–362–5442). Abraham Lincoln 60421 (27034 South Lihue 96766 (3–3367 Kuhio Hwy., Suite Effingham 62401 (1011 Ford Avenue, 217– Diagonal Rd., Elwood, 815–423–9958). 101, 808–246–1163). 347–7600). Alton 62003 (600 Pearl St., 314–260–8720). Wailuku 96793 (35 Lunalilo, Suite 101, Evanston 60202 (1942 Dempster Street, Camp Butler 62707 (5063 Camp Butler Rd., 808–242–8557). 847–869–6315). Springfield, 217–492–4070). Danville 61832 (1900 East Main St., 217– National Cemetery Freeport 61032 (750 Kiwanis Drive, Suite 253, 815–235–4881). 554–4550). Nat. Cem. of the Pacific 96813–1729 (2177 Galesburg 61401 (310 Home Blvd., 309– Fort Sheridan 60037 (Vatner Road, 224– Puowaina Dr., Honolulu, 808–532–3720). 343–0311). 610–7296). Mound City 62963 (Junction Highways 37 IDAHO Great Lakes 60088 (3350 Illinois Street, 847–688–5568). & 51, 314–260–8720). Medical Center Great Lakes 60088 (3420 Illinois Street, Quincy 62301 (36th and Maine St., 309– 782–2094). Boise 83702 (500 West Fort Street, 208– 847–688–6755). Rock Island 61299–7090 (Rock Island 422–1000). Great Lakes 60088 (3440 Ohio Street, 847– 688–2100). Arsenal, Bldg. 118, 309–782–2094). Clinics Great Lakes 60088 (2410 Sampson Street, INDlANA Caldwell 83605 (4521 Thomas Jefferson 847–688–6712). Drive, 208–454–4820). Great Lakes 60088 (2470 Sampson Street, VA Medical Centers Coeur d’Alene 83814 (915 West Emma 847–688–2469). Fort Wayne 46805 (2121 Lake Avenue, Avenue, 208–665–1700). Harrisburg 62946 (608 Rollie Moore Drive, 260–426–5431 or 800–360–8387). Grangeville 83850 (711 West North Street, 618–252–6150). Indianapolis 46202 (1481 West 10th Street, 208–983–4671). Hoffman Estates 60192 (4885 Hoffman 317–554–0000). Idaho Falls 83401 (640 South Woodruff, Blvd., 847–645–1443). Marion 46953–4589 (1700 East 38th Street, 208–522–2922). Joliet 60432 (1201 Eagle Street, 815–740– 765–674–3321 or 800–360–8387). Lewiston 83501 (1630 23rd Avenue, Bldg. 8100). 2, 208–746–7784). Marion 62959 (1301 Enterprise Way, Suite Clinics Mountain Home 83647 (815 North 6th East, 68, 618–993–1008). Bloomington 47403 (1332 West Arch 208–580–2001). Marion 62959 (3404 Heartland Street). Haven Avenue, 812–349–4406). Pocatello 83201 (500 South 11th Avenue, Mattoon 61938 (501 Lakeland Blvd., 217– Bloomington 47403 (2100 South Liberty 208–232–6214). 258–3370). Drive, Suite B, 812–336–5723).

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Crown Point 46307 (9301 Madison Street, Decorah 52101 (915 Short Street, 563–387– Regional Office 219–662–5000). 5840). Wichita 67218 (Robert J. Dole Regional Edinburgh 46124 (3791 10th Street, Bldg. Dubuque 52001 (2600 Dodge Street, Suite Office, 5500 E Kellogg Ave., 1–800–827– 1010, 812–348–0300). A1, 563–588–5520). 1000). Evansville 47715 (6211 East Waterford Fort Dodge 50501 (2419 2nd Avenue N, Blvd., 812–465–6202). 515–576–2235). Vet Center Goshen 46526 (2606 Peddlers Village Road, Knoxville 50138 (1607 North Lincoln Wichita 67211 (413 S Pattie, 316–265– Suite 210, 574–534–6108 or 877–292–0968). Street, 641–828–5019 or 800–816–8878). 3260). Greendale 47025 (1600 Flossie Drive, 812– Marshalltown 50158 (101 Iowa Avenue W, 539–2313). 641–754–6700 or 877–424–4404). National Cemeteries Indianapolis 46222 (2669 Cold Spring Mason City 50401 (520 South Pierce, Suite Fort Leavenworth 66027 (395 Biddle Blvd., Road, 317–988–1866). 150, 641–494–5000). 913–758–4105). Indianapolis 46254 (3850 Shore Drive, Ottumwa 52531 (1009 East Pennsylvania Fort Scott 66701 (900 East National Ave., Suite 203, 317–988–1772). Avenue, 641–683–4300). 620–223–2840). Lafayette 47906 (3851 North River Road, Shenandoah 51601 (512 South Fremont, Leavenworth 66048 (4101 South 4th St., 317–988–1772). 712–246–0092). Traffic Way, 913–758–4105). Martinsville 46151 (2200 John R. Wooden Spirit Lake 51360 (1850 Royal Avenue, KENTUCKY Drive, 317–988–0120). 712–336–6400). Mishawaka 46545 (1540 Trinity Place, Waterloo 50701 (945 Tower Park Drive, VA Medical Centers 319–235–1230). 574–272–9000). Ft. Thomas 41075 (1000 South Fort Muncie 47303 (2600 West White River Regional Office Thomas Avenue, 859–572–6202). Blvd., 765–254–5602). Lexington-Cooper Div. 40502 (1101 New Albany 47150 (4347 Security Des Moines 50309 (210 Walnut St., Rm. 1063, statewide 1–800–827–1000). Veterans Drive, 859–281–4900 or 859–233– Parkway, 502–287–4100). 4511). Peru 46970 (750 North Broadway, 765– Vet Centers Lexington-Leestown Div. 40511 (2253 472–8907). Cedar Rapids 52402 (1642 42nd St. NE, Leestown Road, 859–233–4511 or 859–281– Richmond 47374 (1010 North J Street, 765– 319–378–0016). 4900). 973–6915). Des Moines 50310 (2600 Martin Luther Louisville 40206 (800 Zorn Avenue, 502– Scottsburg 47170 (1467 Scott Valley Drive, King Jr. Pkwy., 515–284–4929). 287–4000). 877–690–1938). Sioux City 51104 (1551 Indian Hills Dr., Shelbyville 46716 (30 West Rampart Street, Clinics Suite 214, 712–255–3808). 317–398–2812). Bellevue 41073 (103 Landmark Drive, Suite Terre Haute 47802 (110 West Honey Creek National Cemetery 300, 859–392–3840). Pkwy., 812–232–8325). Keokuk 52632 (1701 J St., 309–782–2094). Berea 40403 (209 Pauline Drive, 859–986– Terre Haute 57802 (380 Honey Creek Drive, 1259). 812–478–1825). KANSAS Bowling Green 42101 (600 U.S. 31 West Vincennes 47591 (1813 Willow Street, VA Medical Centers Bypass, Suite 12, 270–782–0120). Suite 6A, 812–882–0894). Carrollton 41008 (1911 U.S. Highway 227, Leavenworth 66048–5055 (4101 South 4th 502–287–6060). Regional Office Street, 913–682–2000). Clarkson 42726 (619 West Main Street, Indianapolis 46204 (575 N Pennsylvania Topeka 66622 (2200 SW Gage Boulevard, 866–653–8232). St., statewide 1–800–827–1000). 785–350–3111). Florence 41042 (7310 Turfway Road, Suite Vet Centers Wichita 67218 (5500 East Kellogg, 316– 510, 859–282–4480). Evansville 47711 (311 N Weinbach Ave., 685–2221). Ft. Knox 40121 (851 Ireland Loop, 502– 812–473–5993 or 473–6084). Clinics 624–9396). Fort Wayne 46802 (528 West Berry St., Hanson 42413 (926 Veterans Drive, 270– Chanute 66720 (629 South Plummer, Suite 260–460–1456). 322–3583). D, 620–431–4000). Merrillville 46410 (6505 Broadway Ave., Hazard 41701 (210 Black Gold Blvd., 606– Dodge City 67843 (2201 Summerlon Circle, 219–736–5633). 436–2350). 888–878–6881). Indianapolis 46208 (3833 N Meridian St., Hopkinsville 42240 (1002 South Virginia Ft. Scott 66701 (902 Horton Street, 620– Suite 120, 317–927–6440). Street, 270–885–2106). 223–8655). Louisville-Newburg 40218 (3430 Newburg National Cemeteries Garnett 66032 (421 South Maple, 800–574– Road, 502–287–6223). Crown Hill 46208 (700 W 38th St., 8387). Louisville-Shively 40216 (3934 North Dixie Indianapolis, 765–674–0284). Hays 67601 (207–B East Seventh, 888–878– Highway, Suite 210, 502–287–6000). Marion 46952 (1700 E 38th St., 765–674– 6881). Louisville-Stonybrook 40299 (9208 Hutchinson 67502 (1625 East 30th Avenue, 0284). Taylorsville Road, 502–287–6986). 888–878–6811). New Albany 47150 (1943 Ekin Ave., 502– Mayfield 42066 (1253 Paris Road, Suite A, Junction City 66441 (1169 Southwind Dr., 893–3852). 270–247–2455). 800–574–8387). Morehead 40351 (333 Beacon Hill Road, IOWA Kansas City 66102 (21 North 12th Street, 606–784–3004). Bethany Medical Bldg., Suite 110, 800–952– VA Medical Centers Owensboro 42303 (3400 New Hartford 8387). Road, 270–684–5034). Des Moines 50310–5774 (3600 30th Street, Lawrence 66049 (2200 Harvard Road, 800– Paducah 42001 (2620 Perkins Creek Drive, 515–699–5999). 574–8387) 270–444–8465). Iowa City 52246–2208 (601 Highway 6 Liberal 67901 (2 Rock Island Road, Suite Prestonsburg 41653 (5230 KY Rt. 321, 606– West, 319–338–0581). 200, 620–626–5574). 886–1970). Overland Park 66212 (10500 Mastin Street, Clinics Somerset 42533 (300 Medpark Drive, 606– 816–922–2750). 676–0786). Carroll 51401 (311 South Clark Street, Paola 66071 (510 South Hospital Drive, Suite 275, 712–794–6780). 816–922–2160). Regional Office Cedar Rapids 52404 (2230 Wiley Blvd. SW, Parsons 67357 (1907 Harding Drive, 888– Louisville 40202 (321 W Main St., Ste. 390, 319–369–4340). 878–6881). statewide 1–800–827–1000). Coralville 52441 (520 10th Avenue, Suite Salina 67401 (1410 East Iron, Suite 1, 888– 100, 319–358–2406). 878–6881). Vet Centers Davenport 52804 (2826 West Locust Street, Shawnee 66226 (6830 Anderson Drive, Lexington 40507 (301 E Vine St., Suite C, Suite A, 563–332–8528). 816–922–2750). 859–253–0717).

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Louisville 40208 (1347 S 3rd St., 502–634– Kenner 70062 (2200 Veterans Blvd., Suite Fort Meade (2479 5th St., Fort Meade, MD 1916). 114, 504–464–4743). 20755, 410–305–5300). Shreveport 71104 (2800 Youree Dr., Bldg. Glen Burnie 21061 (808 Landmark Dr., National Cemeteries 1, Suite 1, 318–861–1776). Suite 128, Glen Burnie, MD 21061, 410–590– Camp Nelson 40356 (6980 Danville Rd., National Cemeteries 4140). Nicholasville, 859–885–5727). Alexandria 71360 (209 E Shamrock St., Hagerstown (Hub Plaza Bldg., 1101 Opal Cave Hill 40204 (701 Baxter Ave., Pineville, 601–445–4981). Ct., Hagerstown, MD 21742, 301–665–1462). Louisville, 502–893–3852). Baton Rouge 70806 (220 N 19th St., 225– Loch Raven (3901 The Alameda, Baltimore, Danville 40442 (277 N First St., 859–885– 654–3767). MD 21218, 410–605–7651). 5727). Louisiana 70791 (303 W Mount Pleasant Montgomery County (15810 Gaither Dr., Lebanon 40033 (20 Highway 208, 502– Road, 225–654–1988). Gaithersburg, MD 21218, 410–605–7650). 893–3852). Port Hudson 70791 (20978 Port Hickey Rd., Pocomoke (1701 Market St., Unit 211, Lexington 40508 (833 W Main St., 859– Zachary, 225–654–3767). Pocomoke, MD 21851, 410–957–6718 or 866– 885–5727). 441–0287). Mill Springs 42544 (9044 West Highway MAINE Southern Maryland (29431 Charlotte Hall 80, Nancy, 859–885–5727). Rd., Charlotte Hall, MD 20622, 301–884– VA Medical Center Zachary Taylor 40207 (4701 Brownsboro 7102). Rd., Louisville, 502–893–3852). Togus (1 VA Center, Augusta, ME 04330, Southern PG County (5801 Allentown Rd., 207–623–8411). LOUISIANA Camp Springs, MD 20746, 301–423–3700). Clinics Regional Office VA Medical Centers Bangor (35 State Hospital Dr., Bangor, ME Baltimore 21201 (31 Hopkins Plaza Federal Alexandria (2495 Shreveport Hwy. 71 N, 04401, 207–561–3600). Bldg., 1–800–827–1000). Pineville, LA 71360, 318–473–0010). Calais (50 Union St., Calais, ME 04619, New Orleans (2400 Canal Street, New 207–904–3700). Vet Centers Orleans, LA 70119, 504–507–2000 or 800– Caribou (163 Van Buren Drive, Suite 6, Baltimore 21207 (6666 Security Blvd., 935–8387). Caribou, ME 04736, 207–493–3800). Suite 2, 410–277–3600). Shreveport, LA (510 E Stoner Ave., Lewiston/Auburn (15 Challenger Dr., Cambridge 21613 (5510 West Shore Dr., Shreveport, LA 71101, 318–221–8411). Lewiston, ME 04240, 207–330–2700 or 877– 410–228–6305 ext. 4123). Clinics 421–8263) Elkton 21921 (103 Chesapeake Blvd., Suite A, 410–392–4485). Baton Rouge (North) (7968 Essen Park Lincoln (99 River Road, Lincoln, ME Silver Spring 20910 (1015 Spring St., Suite Ave., Baton Rouge, LA 70809, 225–761–3507 04457, 207–623–8411 or 877–421–8263). 101, 301–589–1073). or 800–935–8387). Portland (144 Fore St., Portland, ME 04101, Baton Rouge (South) (7850 Anselmo Lane, 207–623–8411 or 877–421–8263) National Cemeteries Baton Rouge, LA 70810, 225–761–3507 or Rumford (431 Franklin St., Rumford, ME 04726, 207–369–3200). Annapolis 21401 (800 West St., 410–644– 800–935–8387). 9696). Bogalusa (521 Ontario Avenue Bogalusa, Saco (655 Main St., Saco, ME 04072, 207– 623–8411 or 877–421–8263). Baltimore 21228 (5501 Frederick Ave., LA 70427, 985–735–9029) 410–644–9696). Fort Polk (3353 University Parkway Vet Centers Loudon Park 21228 (3445 Frederick Ave., Leesville, LA 71446, 337–392–3800) Bangor 04401 (368 Harlow St., 207–947– Baltimore, 410–644–9696). Franklin (603 Haifleigh Street Franklin, LA 3391). 70538, 337–828–9092) MASSACHUSETTS Caribou 04619 (456 York St., York Street Hammond (1131 South Morrison Complex, 207–496–3900). VA Medical Centers Boulevard., Hammond, LA 70403, 985–902– Lewiston 04240 (Pkwy. Complex, 29 5100). Bedford (200 Springs Rd., Bedford, MA Westminster St., 207–783–0068). Houma (6433 West Park Avenue, Houma, 01730, 781–687–2000). Portland 04103 (475 Stevens Ave., 207– LA 70364, 985–851–0188 or 800–935–8387). Brockton (940 Belmont St., Brockton, MA 780–3584). Jennings (1907 Johnson St., Jennings, LA 02301, 508–583–4500). Springvale 04083 (628 Main St., 207–490– 70546, 337–824–1000). Jamaica Plain (150 South Huntington Ave., 1513). Knight Street (3000 Knight Street, Building Jamaica Plain, MA 02130, 617–232–9500). 5, Shreveport, LA 71105, 318–221–8411). National Cemetery Leeds (421 N Main St., Leeds, MA, 413– 584–4040). Lafayette (Campus A) (3149 Ambassador Togus 04330 (1 VA Center, 508–563–7113). Caffery Parkway, Lafayette, LA 70501, 337– West Roxbury (1400 VFW Parkway, West 706–3415). MARYLAND Roxbury, MA 02132, 617–323–7700). Lafayette (Campus B) (309 St. Julien VA Medical Centers Clinics Avenue, Lafayette, LA 70506, 337–706– 3415). Baltimore (10 North Greene St., Baltimore, Causeway (251 Causeway St., Boston, MA Lake Charles, 3601 Gerstner Memorial MD 21201, 410–605–7000). 02114, 800–865–3384) Drive, Hwy. 14, Lake Charles, LA 70607, Loch Raven (3900 Loch Raven Boulevard, Fitchburg (881 Main Street, Fitchburg, MA 337–475–9500). Baltimore, MD 21218, 410–605–7000). 01420, 800–893–1522). Monroe (1691 Bienville Dr., Monroe, LA Perry Point (59 Avenue D, Building 59, Framingham (61 Lincoln St., Suite 112, 71203, 318–343–6100 or 800–832–3525). Perry Point, MD 21902, 410–642–2411 or 800 Framingham, MA 01702, 508–628–0205). Natchitoches (740 Keyser Avenue, 949–1003). Gloucester (199 Main Street, Gloucester, MA 01930, 800–838–6331). Natchitoches, LA 71457, 318–357–3300). Clinics Slidell (60491 Doss Dr., Ste. B, Slidell, LA Greenfield (143 Munson St., Greenville, 70460, 985–690–2626). Baltimore (Annex) (209 West Fayette MA 01301, 413–773–8428). St. John (4004 West Airline Hwy., Reserve, Street, Baltimore, MD 21201, 410–605–7000). Haverhill (108 Merrimack St., Haverhill, LA 70084, 504–565–4705). Cambridge (830 Chesapeake Dr., MA 01830, 978–372–5207). Cambridge, MD 21613, 410–228–6243 or Hyannis (233 Stevens St., Hyannis, MA Regional Office 877–864–9611). 02531, 508–771–3190). Gretna 70056 (671A Whitney Ave., Cumberland (200 Glenn St., Cumberland, Lowell (130 Marshall Rd., Lowell, MA statewide 1–800–827–1000). MD 21502, 304–263–0811 or 800–817–3807). 01852, 800–865–3384). East Baltimore (5235 King Avenue, Suite Lynn (225 Boston Rd., Suite 107, Lynn, Vet Centers 200, Rosedale, MD 21237, 443–730–2020). MA 01904, 800–838–6331). Baton Rouge 70809 (5207 Essen Lane, Suite Fort Detrick (1433 Porter St., Frederick, New Bedford (175 Elm St., New Bedford, 2, 225–757–0045). MD 21702, 304–263–0811 or 800–817–3807). MA 02740, 508–994–0217).

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Pittsfield (73 Eagle St., Pittsfield, MA Jackson (4328 Page Avenue, Michigan Lyle C. Pearson (1961 Premier Dr., Suite 01201, 413–499–2672). Center, MI 49254, 517–764–3609). 330, Mankato, MN 56001, 507–387–2939). Quincy (110 West Squantum Street, Lansing (2025 S Washington Ave., Lansing, Maplewood (1725 Legacy Parkway, Suite Quincy, MA 02169, 800–865–3384). MI 48910, 517–267–3925). 100, Maplewood, MN 55109, 651–225–5420). Springfield (25 Bond St., Springfield, MA Manistique (813 East Lakeshore Drive, Montevideo (1025 North 13th St., 01104, 413–731–6000). Manistique, MI 49854, 906–341–3420). Montevideo, MN 56265, 320–269–2222). Worcester (605 Lincoln St., Worcester, MA Marquette (1414 W Fair Ave., Suite 285, Northwest Metro (7545 Veterans Drive, 01605, 508–856–0104). Marquette, MI 49855, 906–226–4618). Ramsey, MN 55303, 612–467–1100). Menominee (1101 10th Ave., Suite 101, Rochester (3551 Commercial Drive South Regional Office Menominee, MI 49858, 906–863–1286). West, Suite 400, Rochester, MN 55902, 507– Boston 02203–0393 (JFK Federal Building, Muskegon (5000 Hakes Dr., Muskegon, MI 252–0885). Room 1265, Government Center, statewide 1– 49441, 231–798–4445). Shakopee (1111 Shakopee Town Square, 800–827–1000) (Towns of Fall River & New Oscoda (5671 Skeel Ave., Suite 4, Oscoda, Shakopee, MN 55379, 952–445–4070). Bedford, counties of Barnstable, Dukes, MI 48750, 989–747–0026). South Central (1212 Heckman Court, St. Nantucket, Bristol, part of Plymouth served Packard Road (3800 Packard Road, Ann James, MN 56081, 507–375–9670). by Providence, R.I., VA Regional Office). Arbor, MI 48108, 734–222–7600 or 734–845– 3414). Regional Office Vet Centers Pontiac (44200 Woodward Avenue, Suite St. Paul 55111 (Bishop Henry Whipple Boston 02215 (665 Beacon St., 617–424– 108, Pontiac, MI 48340, 248–409–0585). Federal Bldg., 1 Federal Dr., 1–800–827– 0665). Saginaw (Annex) (4241 Barnard Road, 1000) (Counties of Becker, Beltrami, Clay, Brockton 02401 (1041–L Pearl St., 508– Saginaw, MI 48603, 800–406–5143). Clearwater, Kittson, Lake of the Woods, 580–2730). Sault Ste. Marie (509 Osborn Blvd., Suite Mahnomen, Marshall, Norman, Otter Tail, Hyannis 02601 (474 West Main St., (508– 306, Sault Ste. Marie, MI 49783, 906–253– Pennington, Polk, Red Lake, Roseau, Wilkin 778–0124). 9383). served by Fargo, N.D., VA Regional Office)— Lowell 01852 (73 East Merrimack St., 978– Traverse City (701 U.S 31 South, Traverse Fiduciary Duties for Illinois, Iowa, Kansas, 453–1151). City, MI 49685, 231–932–9720 or 800–406– Minnesota, Missouri, Nebraska, North 5143). New Bedford 02740 (468 North St., 508– Dakota, South Dakota, Wisconsin (1–800– Wyoming (5838 Metro Way, Wyoming, MI 999–6920). 827–0611). Springfield 01103 (1985 Main St., 49519, 616–249–5300). Northgate Plaza, 413–737–5167). Yale (7470 Brockway Road, Yale, MI Vet Centers Worcester 01605 (691 Grafton St., 508– 48097, 810–387–3211). Duluth 55802 (405 E Superior St., 218– 753–7902). Regional Office 722–8654) National Cemetery Detroit 48226 (Patrick V. McNamara St. Paul 55114 (2480 University Ave., 651– 644–4022). Massachusetts 02532 (Connery Ave., Federal Bldg., 477 Michigan Ave., Rm. 1400, Bourne, 508–563–7113). 1–800–827–1000). National Cemetery MICHIGAN Vet Centers Fort Snelling 55450–1199 (7601 34th Ave. Dearborn 48124–3438 (2881 Monroe St., So., Minneapolis, 612–726–1127). VA Medical Centers Suite 100, 313–277–1428). MISSISSIPPI Ann Arbor 48105 (2215 Fuller Rd., 734– Detroit 48201 (4161 Cass Ave., 313–831– 769–7100 or 800–361–8387). 6509). Medical Centers Battle Creek 49015 (5500 Armstrong Rd., Escanaba 49829 (Willow Creek Biloxi (400 Veterans Ave., Biloxi, MS 269–966–5600 or 888–214–1247). Professional Bldg., 3500 Ludington St.). 39531, 228–523–5000). Detroit (4646 John R. St., Detroit, MI 48201, Grand Rapids 49507 (1940 Eastern SE, Jackson (1500 E Dr., 313–576–1000 or 800–511–8056). 616–243–0385). Jackson, MS 39216, 601–362–4471). Iron Mountain 49801 (325 East H St., Iron Saginaw 48603 (4048 Bay Rd., 989–321– Mountain, MI 49801, 906–774–3300). 4650). Clinics Saginaw (1500 Weiss St., Saginaw, MI National Cemeteries Columbus (824 Alabama St., Columbus, 48602, 989–497–2530 or 800–406–5143). MS 39702, 662–244–0391). Fort Custer 49012 (15501 Dickman Rd., Greenville (1502 S Colorado St., Clinics Augusta, 269–731–4164). Greenville, MS 38703, 662–332–9872). Bad Axe (1142 S Van Dyke Rd., Suite 100, Great Lakes 48442 (4200 Belford Rd., Hattiesburg (5003 Hardy Street, Tower B, Bad Axe, MI 48413) Holly, 866–348–8603). Suite 402, Hattiesburg, MS 39401, 601–296– Benton Harbor (115 Main St., Benton MINNESOTA 3530). Harbor, MI 49022, 269–934–9123). Holly Springs (1700 Crescent Meadow Dr., Cadillac (1909 North Mitchell St., Cadillac, VA Medical Centers Holly Springs, MS 38635, 662–252–2552). MI 49601, 231–775–4401). Minneapolis (One Veterans Dr., Kosciusko (405 West Adams, Kosciusko, Cheboygan County (14540 Mackinaw Minneapolis, MN 55417, 612–725–2000 or MS 39090, 662–289–2880). Hwy., Mackinaw City, MI 49701, 231–436– 866–414–5058). McComb (1308 Harrison Ave., McComb, 5176). St. Cloud (4801 Veterans Dr., St. Cloud, MS 39648, 601–253–0965). Clare (11775 N Isabella Rd., Clare, MI MN 56303, 320–252–1670 or 800–247–1739). Meridian (2103 13th St., Meridian, MS 48617, 989–386–8113). Clinics 39301, 601–482–7154). Clement C. Van Wagoner (180 North State Albert Lea (1665 West Main St., Albert Lea, Natchez (105 Northgate Drive, Suite 2, Avenue, Alpena, MI 49707, 989–356–8720). MN 56007, 507–377–6051). Natchez, MS 39120, 601–442–7141). Flint (2360 South Linden Road, Flint, MI Alexandria (515 22nd Avenue East, Tupelo (1114 Commonwealth Blvd., 48532, 810–720–2913). Alexandria, MN 56308, 320–759–2640). Tupelo, MS 38804. 662–840–6366). Gaylord (806 S Otsego, Gaylord, MI 49735, Bemidji (705 5th St., Bermidji, MN 56601, 989–732–7525). 218–755–6360). Regional Office Grayling (1680 Hartwick Pines Road, Brainerd (722 NW 7th Street, Brainerd, MN Jackson 39216 (1600 E Woodrow Wilson Grayling, MI 49738, 989–344–2002). 56401, 218–855–1115). Ave., statewide 1–800–827–1000). Green Road (2530 Green Road, Ann Arbor, Ely (720 Miners Drive East, Ely, MN 55731, MI 48105, 734–769–7100). 218–365–0001) Vet Centers Hancock (787 Market St., Hancock, MI Fergus Falls (1839 N Park St., Fergus Falls, Biloxi 39531 (288 Veterans Ave., 228–388– 49930, 906–482–7762). MN 56537, 218–739–1400). 9938). Ironwood (629 W Cloverland Dr., Suite 1, Hibbing (990 West 41st Street, Suite 5, Jackson 39216 (1755 Lelia Dr., Suite 104, Ironwood, MI 49338, 906–932–0032). Hibbing, MN 55746, 218–263–1400). 601–965–5727).

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National Cemeteries St. Louis 63033 (6854 Parker Road, 314– National Cemetery Biloxi 39535–4968 (P.O. Box 4968, 400 286–6988). Yellowstone 59044 (55 Buffalo Trail Road, Veterans Ave., 228–388–6668). Warrensburg 64093 (702 E Young Ave., 816 406–647–2746). Corinth 38834 (1551 Horton St., 901–386– 922–2530 ext. 54281). 8311). West Plains 65775 (1801 E State Route K, NEBRASKA 417–257–2454). Natchez 39120 (41 Cemetery Rd., 601–445– VA Medical Centers 4981). Regional Office Grand Island 68803–2196 (2201 No. MISSOURI St. Louis 63103 (400 South 18th St., Broadwell Ave., 308–382–3660/866–580– VA Medical Centers statewide 1–800–827–1000). 1810). Lincoln 68510 (600 South 70th St., 402– Columbia 65201–5297 (800 Hospital Dr., Benefits Office 573–814–6000 or 800–349–8262). 489–3802/866–851–6052). Kansas City 64128 (4801 Linwood Blvd., Omaha 68105 (4101 Woolworth Ave., 402– Kansas City 64128 (4801 Linwood Blvd., 816–922–2660 or 1–800–525–1483, x 52660). 816–861–4700 or 800–525–1483). 346–8800/800–451–5796). Poplar Bluff 63901 (1500 N Westwood Vet Centers Clinics Blvd., 573–686–4151). Kansas City 64111 (301 E Armour Rd., Bellevue VA Clinic 68005 (2206 Longo Saint Louis-Jefferson Barracks 63125–4101 816–753–1866). Drive, Suite 102, 402–591–4500). (1 Jefferson Barracks Dr., 314–652–4100 or St. Louis 63103 (2345 Pine St., 314–231– Holdrege VA Clinic 68949 (1118 800–228–5459). 1260). Saint Louis-John Cochran Div. 63106 (915 Burlington St., 308–995–3760). N Grand Blvd., 314–652–4100 or 800–228– National Cemeteries Norfolk 68701 (710 S 13th, Suite 1200, 5459). Jefferson Barracks 63125 (2900 Sheridan 402–370–4570). Outpatient Clinic Rd., St. Louis, 314–260–8720). North Platte 69101 (600 East Francis, Suite Jefferson City 65101 (1024 E McCarty St., 3, 308–532–6906). Platte City 64079 (2303 Higgins Suite F, Rushville/Gordon 69343 (300 E 8th St., 913–758–6980) 314–260–8720). Springfield 65804 (1702 E Seminole St., 308–282–1442). Clinics 417–881–9499). Scottsbluff 69361 (601 S 5th Ave., 308– 225–5330). Belton 64012 (209 Cunningham Industrial MONTANA Parkway, 816–922–2161). Sidney 69162 (1116 10th Ave., 308–254– Branson VA Clinic 65616 (5571 North VA Medical Centers 5575). Gretna Road, Phone: 417–243–2300) Fort Harrison 59636–1500 (3687 Veterans Regional Office Camdenton 65065 (Lake of the Ozarks Drive, P.O. Box 1500, 406–442–6410). Clinic, 940 Executive Drive, 573–302–7890). Lincoln 68516 (5631 S 48th St., statewide Cameron 64429 (1111 Euclid Dr., 816–922– Clinics 1–800–827–1000). 2530, ext. 54251). Anaconda 59711 (118 East 7th St., 406– Vet Centers Cape Girardeau 63703 (3051 William St., 496–3000). 573–339–0909). Billings 59102 (1766 Majestic Lane, 406– Lincoln 68508 (920 L St., 402–476–9736). Farmington 63640 (1580 W Columbia St., 373–3500). Omaha 68131 (2428 Cuming St., 402–346– 573–760–1365). Cut Bank 59427 (8 Second Avenue, 406– 6735). Ft. Leonard Wood 65583 (700 GW Lane St., 873–9047). 573–774–2285). National Cemetery Bozeman 59715 (300 N. Wilson, Suite Gene Taylor Veterans’ Outpatient Clinic 703G, 406–582–5300). Fort McPherson 69151–1031 (12004 S Spur 65807 (1850 West Republic Road, Phone: 56A, Maxwell, 888–737–2800). 844–501–8387 ext. 64500). Glasgow 59230 (630 2nd Ave., 406–228– 4101). Omaha 68138 (14253 Schram Road, 402– Honor Annex 64133 (4251 Northern 253–3949). Avenue, 816–861–4700). Glendive 59330 (2000 Montana Ave., 406– Hope Recovery Center VA St. Louis Health 377–4755). NEVADA Care System 63103 (515 North Jefferson Great Falls 59405 (1417 9th St. South, Avenue, 314–652–4100, X55500 or 800–228– Suite 200, 406–791–3200 877–468–8387, opt VA Medical Centers 5459, X 55500). 3). Las Vegas 89086 (6900 North Pecos Road Joplin VA Clinic 64804 (3015 South Hamilton VA Clinic 59840 (299 N, 702–791–9024). Connecticut Avenue Phone: 800–691–8387). Fairgrounds, Suite A, 406–363–3352). Reno 89502 (1000 Locust Street, 775–786– Kirksville 63501 (506 Rosewood Dr., 660– Kalispell 59901(31 Three Mile Dr., Ste. 7200 or 888–838–6256). 627–8387). 102, 406–758–2700). Marshfield VA Clinic 65706 (1240 Banning Lewistown VA Clinic 59457 (629 NE Main Clinics Street, 417–468–1963). St., Suite, 406–535–4790). Elko VA Clinic 89801 (2719 Argent Ave., Mexico 65265 (3460 South Clark St., 573– Merril Lundman VA Clinic (Havre, MT 775–738–0188). 581–9630). 59501) (130 13th Street, Suite 1, 406–265– Northwest Primary Care Clinic 89103 (3968 Mobile Medical Unit 64128 (4801 Linwood 4304). N Rancho Dr., 702–791–9020). Blvd., 816–861–4700, X52977 or 800–525– Miles City 59301 (Clinic/Nursing Home, Southeast Primary Care Clinic 89015 (1020 210 S Winchester, 406–874–5600). 1483, X52977). S Boulder, 702–791–9030). Nevada 64772 (322 South Prewitt, 816– Missoula 59808 (2687 Palmer St., Suite C, Southwest Primary Care Clinic 89113 861–4700, X54235). 406–493–3700). (7235 South Buffalo Drive, 702–791–9040). Salem 65560 (Hwy. 72 North, 573–778– Plentywood VA Clinic 59254 (440 West 9750 or 1–888–557–8262). Laurel Ave., 406–765–3719) Community Based Outpatient Clinic Sedalia VA Clinic 65301 (3320 West 10th Lahontan Valley VA Clinic 89406 (1020 Street, 660–826–3800). Regional Office Sikeston CBOC 63801 (903 South Kings Fort Harrison 59636 (3633 Veterans Dr., New River Parkway, Suite 304, 775–428– Highway, 573–472–2139). P.O. Box 1500, 1–800–827–1000). 6161). St. Charles 63368 (844 Waterbury Falls Dr., Pahrump Community Based Outpatient 314–286–6988). Vet Centers Clinic 89048 (220 South Lola Lane, 775–727– St. James 65559–1999 (Missouri Veterans Billings 59102 (1234 Ave., C, 406–657– 7535). Home, 207 Matlock Dr., 573 265–0448). 6071). VA Carson Valley Outpatient Clinic 89410 St. Joseph 64503 (3302 S Belt Highway, Missoula 59802 (500 N Higgins Ave., 406– (1330 Waterloo Lane, Suite 101, 775–782– Suite P, 1–800–952–8387, ext 56925). 721–4918). 5265).

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NEW HAMPSHIRE NEW MEXICO Montrose 10548 (2094 Albany Post Rd., 914–737–4400). VA Medical Center VA Medical Center New York 10010 (423 East 23rd Street, Manchester 03104 (718 Smyth Road, 603– Albuquerque 87108–5153 (1501 San Pedro 212–686–7500). 624–4366 or 800–892–8384). Dr. SE, 505–265–1711 or 800–465–8262). Northport 11768 (79 Middleville Road, Conway 03818 (71 Hobs St. Third Floor, Clinics 631–261–4400). 800–892–8384, ext. 3199). Syracuse 13210 (800 Irving Ave., 315–425– Keene Outpatient Clinic 03431 (640 Alamogordo 88310 (3199 North White 4400). Sands Blvd., Suite 10, 574–437–9195). Marlboro Street, Route 101, 603–358–4900). Artesia 88210–3716 (2410 West Main St., Domiciliaries Littleton 03561 (Littleton Regional 505–746–3531). Hospital, 264 Cottage St., 603–575–6700). Jamaica 11425 (St. Albans, 179–00 Linden Clovis 88101 (921 East Llano Estacado, Blvd. & 179 St., 718–526–1000). Portsmouth 03803 (Pease Intl., Tradeport 505–763–4335). 302 Newmarket St., 603–624–4366, x3199). Espanola 87532 (105 South Coronado Ave., Clinics Somersworth 03878 (200 Route 108, 603– 505–367–4213). Auburn 13021 (47 E Genesee Street, 315– 624–4366, Ext. 3199). Farmington 87402–8303 (3605 English Rd., 294–7300). Tilton 03276 (630 West Main St. Suite 505–326–4383). Bainbridge 13733 (109 North Main St., 400., 603–624–4366, x3199). Gallup 87301 (2075 South NM Hwy. 602, 607–967–8590). 505–722–7234). Regional Office Bay Shore 11706 (132 East Main Street, Hobbs 88340 (1601 N Turner (4th Floor), 631–754–7978). Manchester 03101 (Norris Cotton Federal 505–391–0354). Binghamton 13901 (203 Court Street, 607– Bldg., 275 Chestnut St., 1–800–827–1000). Las Cruces 88012 (3401 Del Rey Blvd., 772–9100). 575–522–1241). Carmel 10512 (1875 Route 6, Sterling Bank, Vet Center Las Vegas 87701 (624 University Ave., (2nd floor) 845–228–5291). Manchester 03104 (103 Liberty St., 603– 505–425–1910). Catskill 12414 (Columbia Greene Medical Northwest Metro 87124 (1760 Grande Blvd. 668–7060/61). Arts Building, Suite D305, 159, Jefferson SE, 505–896–7200). Hgts., 518–626–5240). NEW JERSEY Raton 87440–2234 (1493 Whittier St., 575– Clifton Park 12065 (963 Route 146, 518– VA Medical Centers 445–2391). Santa Fe 87507 (5152 Beckner Rd., 505– 383–8506). East Orange 07018 (385 Tremont Avenue, 986–8645). Dunkirk 14048 (1170 Central Avenue, 716– 973–676–1000). Silver City 88601 (2950 Leslie Rd., 505– 363–1235). Lyons 07939 (151 Knollcroft Road, 908– 538–2921). East Meadow 11554 (2201 Hempstead 647–0180). Taos CCBOC 57571 (1353 Paseo Del Pueblo Turnpike Building Q, 631–754–7978). Sur, 575–751–0328). Elmira 14901 (1316 College Avenue, 877– Clinics Truth or Consequences 87901 (1960 North 845–3247). Brick 08724 (970 Rt. 70, 732–206–8900). Date St., 575–894–7662). Fonda 12068 (2623 State Highway, 30A, Elizabeth 07206 (654 East Jersey Street, 518–853–1247). Suite 2A, 908–994–0120). Regional Office Freeville 13068 (1451 Dryden Road, 607– Hackensack 07601 (385 Prospect Avenue, Albuquerque 87102 (Dennis Chavez 347–4101). 201–342–4536). Federal Bldg., 500 Gold Ave. SW, statewide Glens Falls 12801 (101 Ridge Street., 518– Jersey City 07302 (115 Christopher 1–800–827–1000). 798–6066). Goshen 10924 (30 Hatfield Lane, Suite 204, Columbus Dr., 201–435–3055/3305). Vet Centers Morristown 07960 (540 West Hanover 845–294–6927). Albuquerque 87104 (1600 Mountain Rd. Jamestown 14701 (608 West 3rd Street Ave., 973–539–9791/9794). NW, 505–346–6562). 716–338–1521). Paterson 07503 (11 Getty Ave., St. Joseph’s Farmington 87402 (4251 E Main, Suite C, Kingston 12401 (324 Plaza Road., 845– Hospital & Med. Center, 973–247–1666). 505–327–9684). 331–8322). Piscataway CBOC 08854 (14 Wills Way, Las Cruces 88001 (230 S Water St., 575– Lackawanna 14218 (1234 Abbott Road., Building 5, 732–981–8193). 523–9826). 716–821–7815). Sussex Outpatient Clinic 07860 (222 High Santa Fe 87505 (2209 Brothers Rd., Suite Lockport 14094 (5725 S Transit Rd., 716– Street, 973–756–1504). 110, 505–988–6562). 438–3890), Tinton Falls Community Based Outpatient Massena 13662 (6100 St. Lawrence Centre, National Cemeteries Clinic 07701 (55 Gilbert St., 732–842–4751). 315–705–6666). Fort Bayard 88036 (P.O. Box 189, 915–564– Regional Office Monticello 12701 (55 Sturgis Road, 845– 0201). 791–4936). Newark 07102 (20 Washington Pl., Santa Fe 87501 (501 N Guadalupe St., 505– New City 10956 (345 North Main Street, statewide 1–800–827–1000) (Philadelphia, 988–6400 or toll-free 877–353–6295). Upper Level, 845–634–8942). PA Regional Office serves counties of NEW YORK New York 10027 (55 West 125th St., 646– Atlantic, Burlington, Camden, Cape May, 273–8125). Cumberland, Gloucester, Salem). VA Medical Centers Niagara Falls 14301–2300 (2201 Pine Vet Centers Albany 12208 (113 Holland Ave., 518– Avenue, 716–284–1702). 626–5000). Olean 14760–2658 (465 North Union St., Bloomfield 07003 (2 Broad St., Suite 703, Batavia 14020 (222 Richmond Ave., 585– 716–373–7709). 973–748–0980). 297–1000). Oswego 13126 (437 State Route 104E 315– Jersey City 07302 (115 Christopher Bath 14810 (76 Veterans Ave., 607–664– 207–0209). Columbus Dr., Suite 200, 201–748–4467). 4000). Patchogue 11772 (4 Phyllis Drive, 631– Ewing 08618 (934 Parkway Ave., 2nd Fl., Bronx 10468 (130 West Kingsbridge Rd., 754–7978). 609–882–5744). 718–584–9000). Pine Plains 12567 (2881 Church St., Rt. Ventnor 08406 (6601 Ventnor Ave., Suite Brooklyn 11209 (800 Poly Place, 718–836– 199, 518–398–9240). 105, 609–487–8387). 6600). Plattsburgh 12901 (80 Sharron Ave., 518– Buffalo 14215 (3495 Bailey Ave., 716–834– 561–6247). National Cemeteries 9200 or 800–532–8387). Port Jervis 12771 (150 Pike St., 845–856– Beverly 08010 (916 Bridgeboro Rd., 609– Canandaigua 14424 (400 Fort Hill Ave., 5396). 880–0827). 585–394–2000). Poughkeepsie 12603 (Freedom Executive Finn’s Point 08079 (Box 542, R.F.D. 3, Fort Wappinger Falls 12590 (41 Castle Point Park, Rt. 55, 488 Freedom Plains Rd., Suite Mott Rd., Salem, 609–880–0827). Road 845–831–2000). 120, 845–452–5151).

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Riverhead 11901 (300 Center Drive 631– Syracuse 13210 (716 E Washington St., Raleigh III 27604 (2600 Atlantic Avenue, 754–7978). 315–478–7127). Suite 200, 919–286–0411). Rochester 14623 (Monroe County VA White Plains 10601 (300 Hamilton Ave., Rutherford 28139 (374 Charlotte Road, Clinic, 260 Calkins Road, 585–463–2600). 1st Fl., 914–682–6253). 828–288–2780). Rochester 14620 (465 Westfall Road, 585– Watertown 02601 (210 Court St., 315–782– Sanford 27330 (3112 Tramway Road, 910– 463–2600). 0217). 488–2120). Rome 13441 (125 Brookley Road, Building Woodhaven 11421 (75–10B 91st Ave., 718– Supply 28462 (18 Doctors Circle, Suite 2, 510, 315–334–7100). 296–2871). 910–754–6141). Saranac Lake 12983 (33 Depot Street, 518– Wilmington 28405 (1705 Gardner Road, National Cemeteries 626–5237). 910–343–5300). Schenectady 12308 (1346 Gerling Street, Bath 14810 (76 Veterans Ave., San Juan Regional Office Sheridan Plaza, 518–346–3334). Ave., 607–664–4853). Springville 14141 (15 Commerce Drive, Calverton 11933–1031 (210 Princeton Winston-Salem 27155 (Federal Bldg., 251 716–592–2409). Blvd., 631–727–5410/5770). N Main St., statewide 1–800–827–1000, Staten Island 10314 (1150 South Ave., 3rd Cypress Hills 11208 (625 Jamaica Ave., nationwide Loan Guaranty Certificate of Floor, Suite 301, 718–836–6600). Brooklyn, 631–454–4949). Eligibility Center 1–888–244–6711). Long Island 11735–1211 (2040 Wellwood Sunnyside 11104 (47–01 Queens Blvd., 3rd Vet Centers Floor, Suite 301, 718–741–4800). Ave., Farmingdale, 631–454–4949). Troy 12180 (295 River St., 518–274–7707). Saratoga 12871–1721 (200 Duell Rd., Charlotte 28202 (223 S Brevard St., Suite ValleyStream 11580 (99 South Central Schuylerville, 518–581–9128). 103, 704–333–6107). Avenue, 631–754–7978). Woodlawn 14901 (1825 Davis St., Elmira, Fayetteville 28311 (4140 Ramsey St., Suite Watertown 13601 (19472 U.S. Route 11, 607–732–5411). 110, 910–488–6252). Greensboro 27406 (2009 S Elm-Eugene St., 315–782–0067). NORTH CAROLINA Watertown 13601 (144 Eastern Blvd., 315– 336–333–5366). 221–7026). VA Medical Centers Greenville 27858 (150 Arlington Blvd., Suite B, 252–355–7920). Wellsville 14895 (3458 Riverside Dr., Asheville 28805 (1100 Tunnel Road, 828– Route 19, 607–664–4660). 298–7911). Raleigh 27604 (1649 Old Louisburg Rd., Westport 12993 (7426 NYS Route 9N, 518– Durham 27705 (508 Fulton St., 919–286– 919–856–4616). 626–5236). 0411). National Cemeteries White Plains 10601 (23 South Broadway, Fayetteville 28301 (2300 Ramsey St., 910– New Bern 28560 (1711 National Ave., 252– 914–421–1951). 488–2120 or 800–771–6106). 637–2912). Yonkers 10701 (124 New Main St., 914– Salisbury 28144 (1601 Brenner Avenue, Raleigh 27610–3335 (501 Rock Quarry Rd., 375–8055). 704–638–9000 or 800–469–8262). 252–637–2912). Regional Offices Clinics Salisbury 28144 (202 Government Rd., Buffalo 14202 (Niagara Center, 130 S Charlotte 28213 (8601 University East 704–636–2661/4621). Elmwood Ave., 1–800–827–1000. Serves Drive, 704–597–3500). Wilmington 28403 (2011 Market St., 252– counties not served by New York City VA Charlotte 28208 (3506 West Tyvola Road, 637–2912). Regional Office.). 704–329–1300). NORTH DAKOTA New York City 10014 (245 W Houston St., Clayton 27520 (11618 U.S. 70 Business statewide 1–800–827–1000. Serves counties Highway West Suites 100 and 200) VA Medical Center of Albany, Bronx, Clinton, Columbia, Durham 27705 (1824 Hillandale Road, Fargo 58102 (2101 Elm Street N, 701–239– Delaware, Dutchess, Essex, Franklin, Fulton, 919–383–6107). 3700 or 800–410–9723). Greene, Hamilton, Kings, Montgomery, Elizabeth City 27909 (1845 W City Drive). Nassau, New York, Orange, Otsego, Putnam, Fayetteville 28304 (7300 South Raeford Clinics Queens, Rensselaer, Richmond, Rockland, Road, 910–488–2120). Bismarck 58503 (2700 State Street, 701– Saratoga, Schenectady, Schoharie, Suffolk, Fayetteville 28304 (4101 Raeford Road, 221–9152). Sullivan, Ulster, Warren, Washington, Suite 100–B, 910–488–2120). Devils Lake 58301 (1031 7th Street Westchester.). Fayetteville 28305 (2301 Robeson Street, Northeast, 701–662–5801). 910–483–9727). Dickinson 58601 (766 Elks Drive, Suite 6H, Benefits Offices Franklin 28734 (647 Wayah Street, 828– 701–483–1850). Albany 12208 (113 Holland Ave., 1–800– 369–1781). Grafton 58237 (1319 West 11th Street, 701– 827–1000). Goldsboro 27534 (2610 Hospital Road, 352–4059). Rochester 14620 (465 Westfall Rd., 1–800– 919–731–4809). Grand Forks 58201 (3221 32nd Avenue 827–1000). Greenville 27834 (401 Moye Blvd., 252– South Suite 700, 701–335–4380). Syracuse 13202 (344 W Genesee St., 1– 830–2149). Jamestown 58401 (2430 20th Street 800–827–1000). Hamlet 28345 (100 Jefferson Street, 910– Southwest, Suite 8, 701–952–4787). 582–3536). Vet Centers Minot 58705 (3400 South Broadway Street, Hickory 28602 (2440 Century Place SE, 701–418–2600). Albany 12205 (17 Computer Drive West, 828–431–5600). Williston 58801 (1542 16th Street West, 518–626–5130). Hillandale 27705 (1824 Hillandale Road, Suite 300, 701–572–2470). Babylon 11702 (116 West Main St., 631– 919–383–6107). 661–3930). Jacksonville 28546 (4006 Henderson Drive, Regional Office Bronx 10458 (130 West Kingsbridge Rd., 910–353–6406). Fargo 58102 (2101 Elm St., statewide 1– Rm. 7A–13, 718–367–3500). Kernersville 27284 (1695 Kernersville 800–827–1000). Brooklyn 11201 (25 Chapel St., Suite 604, Medical Parkway, 336–515–5000). 718–624–2765). Morehead City 28557 (5420 Highway 70, Vet Centers Buffalo 14202 (564 Franklin St., 716–882– 252–240–2349). Bismarck 58501 (1684 Capital Way, 701– 0505). Pembroke 28372 (139 Three Hunts Drive, 224–9751). New York 10004 (32 Broadway, Suite 200, 910–272–3220). Fargo 58103 (3310 Fiechtner Dr., Suite 100, 212–742–9591). Raleigh 27610 (3305 Sungate Blvd., 919– 701–237–0942). New York 10027 (55 West 125th St., 11th 212–0129). Minot 58701 (2041 3rd St. NW, 701–852– Fl., 212–426–2200). Raleigh II 27603 (3040 Hammond Business 0177). Rochester 14620 (1867 Mt. Hope Ave., Place Suite 105, 919–899–6259). 585–232–5040). Raleigh 27603 (Wake County VA Clinic, National Cemetery Staten Island 10301 (150 Richmond 3040 Hammond Business Place, Suite 105, Fargo 58042 (8709 40th Ave. N, County Terrace, 718–816–4499). 919–899–6259). Road 20, 701–451–4650).

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OHIO Springfield 45505 (1620 N Limestone St., Muskogee 74403 (2414 E. Shawnee Bypass, 937–268–6511). 918–577–3699). VA Medical Centers St. Clairsville 43950 (107 Plaza Dr., 740– Oklahoma City 73120 (2915 Pine Ridge Chillicothe 45601 (17273 State Route 104, 695–9321). Road, 405–752–6500). 740–773–1141 or 800–358–8262). Toledo 43614 (1200 S Detroit Avenue, Stillwater 74074 (320 N Perkins Ave, 405– Cincinnati 45220 (3200 Vine Street, 513– 419–259–2000). 70–8100). 861–3100). Warren 44485 (1460 Tod Ave. NW, 330– Tulsa 74135 (5110 South Yale, Suite 200, Cleveland 44106 (10701 East Blvd., 216– 392–0311). 918–628–2574). 791–3800). Willoughby 44094 (3500 Kaiser Court, Vinta 74301 (269 S 7th St 918–713–5400). Columbus 43203 (420 N James Road, 614– 440–269–4600). 257–5200 or 888–615–9448). Wilmington 45177 (448 West Main Street, Regional Office Dayton 45428 (4100 W 3rd Street, 937– 937–382–3949). Muskogee 74401 (Federal Bldg., 125 S 268–6511 or 800–368–8262). Youngstown 44505 (2031 Belmont Avenue, Main St., Compensation & Pension: 1–800– Clinics 330–740–9200). 827–1000, Education National Call Center: 1– Zanesville 43701 (2800 Maple Ave., 740– 888–442–4551, National Direct Deposit: 1– Akron 44319 (55 W Waterloo 330–724– 453–7725). 877–838–2778). 7715). Ashtabula 44004 (2044 Lambros Lane, Regional Office Benefits Office 440–964–6454). Cleveland 44199 (Anthony J. Celebrezze Oklahoma City 73102 (Federal Campus, Athens 45780 (88 North Plains Road 740– Fed. Bldg., 1240 E 9th St., 1–800–827– 301 NW 6th St., Suite 113, 1–800–827–1000). 592–7720). 1000)—Fiduciary Duties for Connecticut, Bellevue, KY 4073–1399 (103 Landmark Delaware, Indiana, Maine, Massachusetts, Vet Centers Drive, Suite 300, 859–392–3840). Michigan, New Hampshire, New Jersey, New Oklahoma City 73118 (1024 NW 47th, 405– Belmont 43950 (67800 Mall Ring Road York, Ohio, Pennsylvania, Rhode Island, 270–5184). 740–695–9321). Vermont (1–800–729–5772). Tulsa 74112 (1408 S Harvard, 918–748– Calcutta 43920–9672 (15655 State Route 5105). 170, Suite A, 330–386–4303). Benefits Offices Cambridge 437275 (2146 Southgate Pkwy., Cincinnati 45202 (36 E Seventh St., Suite National Cemeteries 740–432–1963). 210, 1–800–827–1000). Fort Gibson 74434 (1423 Cemetery Rd., Canton 44702 (733 Market Avenue South, Columbus 43215 (Federal Bldg., Rm. 309, 918–478–2334). 330–489–4600). 200 N High St., 1–800–827–1000). Fort Sill 73538 (2648 NE Jake Dunn Rd., Cincinnati 45244 (4600 Beechwood Road, 580–492–3200). 513–943–3680). Vet Centers OREGON Cleveland 44113 (4242 Lorain Ave., 216– Cincinnati 45203 (801–B W 8th St., 513– 939–0699). 763–3500). VA Medical Centers Columbus 43219 (420 N James Road, 614– Cleveland Heights 44118 (2022 Lee Rd., Portland 97239 (3710 SW U.S. Veterans 257–5200). 216–932–8471). Florence KY 41042–1385 (7310 Turfway Hospital Rd., 503–220–8262 or outside Columbus 43215 (30 Spruce St., 614–257– Portland area 800–949–1004). Road, Suite 510, 859–282–4480). 5550). Gallipolis 45631 (323A Upper River Road, Roseburg 97471 (913 NW Garden Valley Dayton 45402 (111 W 1st St., Suite 101, Blvd., 541–440–1000 or 800–549–8387). 740–446–3934). 937–461–9150). Georgetown 45121 (474 Home Street, 937– Parma 44129 (5700 Pearl Rd., Suite 102, Domiciliaries 378–3413). 440–845–5023). Greendale, IN (Dearborn VA Clinic, 1600 White City 97503 (8495 Crater Lake Hwy., Flossie Drive, 812–539–2313). National Cemeteries 541–826–2111). Grove City 43123 (5775 North Meadows Dayton 45428–1088 (4100 W Third St., Clinics Drive, Suite A, 614–257–5800). 937–262–2115). Hamilton 45011 (1750 South Erie Highway, Boardman 97818 (2 Marine Drive, Suit 103, Ohio Western Reserve 44270 (10175 541–481–2255). 513–870–9444). Rawiga Rd., Rittman, 330–335–3069). Lancaster 43130 (1703 North Memorial Bend 97701 (2650 NE Courtney Drive, 541– Drive, 740–653–6145). OKLAHOMA 647–5200 or 855–213–8002). Lima 45804 (1303 Bellefontaine Ave., 419– Brookings 97415 (840 Railroad St., 541– VA Medical Centers 222–5788). 412–1152). Mansfield 44906 (1025 South Trimble Rd., Muskogee 74401 (1011 Honor Heights Burns 97720 (271 N Egan Ave., 541–573– 419–529–4602). Drive, 918–577–3000). 3339). Marietta 45750 (27843 State Route 7, 740– Oklahoma City 73104 (921 NE 13th Street, Dalles 97058 (704 Veterans Drive, 541– 568–0412). 405–456–1000). 296–3937). Enterprise 97828 (401 NE 1st Street, 541– Marion 43302 (1203 Delaware Avenue, Clinics Suite 2, Corporate Center #2, 740–223–8089). 426–0219). Middletown 45042 (4337 North Union Ada 74820 (717 Better Now Plaza, 580– Eugene 97401 (211 E. 7th Ave., Suite 118, Road, 513–423–8387). 436–2262). 541–440–1000). New Philadelphia 44663 (1260 Monroe Altus 73521(1604 N Main Highway 283, Eugene 97408 (3355 Chad Dr., 541–607– Ave., Suite 1A, 330–602–5339). 580–482–0721). 0897). Newark 43055 (1855 West Main Street, Ardmore: 73401(2002 12th Avenue NW, Fairview 97024 (1800 NE Market Drive, 740–788–8329). Suite E, 580–222–0400). 503–660–0600). Norwood 45212–2784 (4600 Smith Road, Blackwell 74631 (1009 W Ferguson Ave., Grants Pass 97527 (1877 Williams Hwy., Central Station, SuiteA6). 580–363–0052). 541–955–5551). Parma 44129 (8787 Brookpark Road, 216– Enid 73701 (915 E Owen K. Garriott, Suite Hillsboro 97006 (1925 NE Stucki Ave., 739–7000). G, 580–977–1855). Suite #300, 503–906–5000). Portsmouth 45622 (840 Gallia Street, 740– Fort Sill 73503 (4303 Pittman and Thomas Klamath Falls 97601 (2225 North El 353–3236). Bldg. 4303, 580–585–5600). Dorado Blvd., 541–273–6206). Ravenna 44266 (6751 N Chestnut St., 330– Idabel 74745 (903 SE Washington St., 580– La Grande 97850 (202 12th Street, 541– 296–3641). 920–7200). 963–0627). Sandusky 44870 (1912 Hayes Avenue, Jay 74346 (1569 North Main Street, 888– Lincoln City 97367 (4422 NE Devils Lake 419–609–1460). 424–8387). Road, 541–265–0547). Sheffield Village 44035 (5255 North Abbe McAlester 74501 (2 E Clark Bass Blvd., Newport 97365 (1010 SW Coast Highway, Road, 440–934–9158). 888–397–8387). 541–265–4182).

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North Bend 97459 (2191 Marion Street Ellwood City 16117 (Ellwood City Wilkes-Barre 18711 (1111 East End North, 541–756–8002). Hospital, Medical Arts Building, #201, 304 Boulevard, 570–924–3521). Portland 97704 (308 SW 1st Ave., 503– Evans Drive, 724–285–2203). Willow Street 17584 (212 Willow Valley 508–1256 or 800–949–1004). Foxburg 16036 (ACV Medical Center, 855 Lakes Drive, Suite 208, 800–409–8771). Salem 97302 (1750 McGilchrist St. SE, Route 58, Suite 1, 724–659–5601). Williamsport 17701 (1705 Warren Ave., Suite 130, 971–304–2200). Frackville 17931 (10 East Spruce St., 570– Werner Blg., 3rd Fl., #304, 570–322–4791). 621–4904). Warrenton 97146 (91400 N Neacoxie St., Wyomissing 19610 (2762 Century Blvd., Building 7315, 503–220–8262). Greensburg 15601 (Hempfield Plaza, Route 800–409–8771). West Linn 97068 (1750 SW Blankenship, 30, 724–837–5200). 503–210–4900). Franklin 16323 (464 Allegheny Blvd., 866– York 17402 (2251 Eastern Blvd., 800–409– 962–3260) 8771, 717–840–2730). Regional Office Greensburg 15601 (5274 Rt. 30 East, Suite Regional Offices Portland 97204 (Edith Green/Wendell 10, 724–216–0317). Wyatt Federal Building, 1220 SW Third Ave., Hermitage 16148 (295 N Kerrwood Dr., Philadelphia 19101 (Regional Office and 1–800–827–1000). Suite 110, 724–346–1569). Insurance Center, P.O. Box 8079, 5000 Honesdale 18431 (600 Maple Ave., Suite 2, Wissahickon Ave., 1–800–827–1000; Serves Vet Centers 570–251–6543). counties of Adams, Berks, Bradford, Bucks, Eugene 97403 (1255 Pearl St., 541–465– Horsham 19044 (433 Caredean Dr., 215– Cameron, Carbon, Centre, Chester, Clinton, 6918). 823–6050). Columbia, Dauphin, Delaware, Franklin, Grants Pass 97526 (211 SE 10th St., 541– Indiana 15701 (1570 Oakland Avenue, Juniata, Lackawanna, Lancaster, Lebanon, 479–6912). 724–349–8900). Lehigh, Luzerne, Lycoming, Mifflin, Monroe, Portland 97220 (8383 NE Sandy Blvd., Johnstown 15904 (598 Galleria Drive). Suite 110, 503–273–5370). Kittanning 16201 (11 Hilltop Plaza, 724– Montgomery, Montour, Northampton, Salem 97301 (617 Chemeketa St., NE, 503– 545–8420). Northumberland, Perry, Philadelphia, Pike, 362–9911). Lancaster 17605 (1861 Charter Lane, Green Potter, Schuylkill, Snyder, Sullivan, Field Corp. Center, #118, 717–290–6900). Susquehanna, Tioga, Union, Wayne, National Cemeteries Mapleton Depot 17052 (13903 William Wyoming, York.). Eagle Point 97524 (2763 Riley Rd., 541– Penn Highway, 814–542–2800). Pittsburgh 15222 (1000 Liberty Ave., 826–2511). Meadville 16335 (Conneaut Lake Road, statewide 1–800–827–1000. Serves remaining Roseburg 97470 (1770 Harvard Blvd., 541– 866–962–3210). counties of Pennsylvania.). 826–2511). Mechanicsburg 17055 (5070 Ritter Road, Willamette 97266–6937 (11800 SE Mt. 800–409–8771). Benefits Office Scott Blvd., Portland, 503–273–5253). Monaca 15061 (90 Wagner Rd., 724–216– Wilkes-Barre 18702 (1123 East End Blvd., 0326). Bldg. 35, Suite 11, 1–800–827–1000). PENNSYLVANIA Monroe Township 16214 (56 Clarion Plaza, VA Medical Centers Suite 115, 814–226–3900). Vet Centers New Castle 16101 (Ridgewood Professional Erie 16501 (1000 State St., Suite 1&2, 814– Aatona 16602 (2907 Pleasant Valley Centre, 1750 New Butler Road, 724–598– 453–7955). Boulevard, 814–943–8164). 6080). Butler 16001 (353 North Duffy Road, 724– Newtown Square 19073 (4883 West Harrisburg 17102 (1500 N 2nd St., Suite 2, 287–4781 or 800–362–8262). Chester Pike, 610–383–0239). 717–782–3954). Coatesville 19320 (1400 Black Horse Hill Oil City 16301 (174 Bissell Avenue, 814– McKeesport 15131 (2001 Lincoln Way, Road, 610–384–7711). 678–2631). 412–678–7704). Erie 16504 (135 East 38 Street, 814–868– Oil City 16301 (Venango County Clinic, Philadelphia 19107 (801 Arch St., Suite 8661 or 800–274–8387). UPMC Northwest, 174 E Bissell Ave., 814– 102, 215–627–0238). Lebanon 17042 (1700 South Lincoln 677–7591 or 800–274–8387). Philadelphia 19120 (101 E Olney Ave., Avenue, 717–272–6621 or 800–409–8771). Philadelphia 19106 (213–217 North 4th 215–924–4670). Philadelphia 19104 (3900 Woodland Aves., Street, 215–923–1163). Pittsburgh 15205 (2530 Baldwick Rd., Suite 800–949–1001 or 215–823–5800). Pottsville 17901 (1410 Laurel Blvd. Suite 2, 15, 412–920–1765). Pittsburgh 15260 (Delafield Road, 866– 800–409–8771). Scranton 18505 (1002 Pittston Ave., 570– 482–7488 or 412–688–6000). Reading 19601 (St. Joseph’s Community 344–2676). Pittsburgh 15206 (Highland Drive Division, Center, 145 N 6th St., 610–208–4717). Williamsport 17701 (805 Penn St., 570– 7180 Highland Drive, 412–365–4900 or 1– Rochester 15074 (300 Brighton Ave., Suite 327–5281). 866–4VAPITT). 110, 724–709–6005). Pittsburgh 15240 (University Drive Sayre 18840 (1537 Elmira St., 570–888– National Cemeteries Division, University Drive, 1–42–822–2222). 6803). Indiantown Gap 17003–9618 (RR 2, P.O. Wilkes-Barre 18711 (1111 East End Blvd., Schuylkill 17972 (6 South Greenview Rd., Box 484, Indiantown Gap Rd., Annville, 717– 570–824–3521 or 877–928–2621). 570–621–4115). Smethport 16749 (406 Franklin Street, 865–5254). Clinics 814–887–5655). National Cemetery of the Alleghenies Allentown 18103 (3110 Hamilton Spring City 19475 (11 Independence Drive, 15017 (1158 Morgan Rd., Bridgeville, 724– Boulevard, 610–776–4304). 610–948–0981). 746–4363). Bangor 18013 (701 Slate Belt Boulevard, Springfield 19064 (Crozer Keystone Philadelphia 19138 (Haines St. and 610–599–0127). Healthplex, 194 W Sproul, Rd., #105, 610– Limekiln Pike, 215–504–5610). Berwick 18603 (301 W Third Street, 570– 543–3246). Washington Crossing 18940 (830 Highland 759–0351). State College 16801 (2581 Clyde Ave., 877– Road, 215–504–5610). Bradford 16701 (23 Kennedy Street, 814– 626–2530). 368–3019). Tobyhanna 18466 (Tobyhanna Army Depot PHILIPPINES Camp Hill 17011 (25 N 32nd Street, 717– Building 220, 570–615–8341). Clinic 730–9782). Uniontown 15401 (627 Pittsburgh Road, Coudersport 16915 (24 Maple Vie Lane, Suite 2, 724–439–4990). Pasay City 1302 (1501 Roxas Blvd., 011– Suite 2, 607–664–4670). Warren 16365 (3 Farm Colony Dr., 866– 632–8550–3888). Cranberry Township 16066 (900 682–3253). Regional Office Commonwealth Drive, 724–742–3500 or 724– Washington 15301 (95 West Beau St., Suite 741–3131). 200, 724–253–7790). Manila 0930 (1131 Roxas Blvd., 011–632– DuBois 15801 (5690 Shaffer Road, 877– Wellsboro 16901 (1835 Shumway Hill 528–6300, International Mailing Address PSC 626–2530). Road, 607–664–4680 or 877–845–3247). 501, FPO AP 96515–1100).

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PUERTO RICO Clinics Regional Office VA Medical Center Aiken 29803 (951 Millbrook Avenue, 803– Sioux Falls 57117 (P.O. Box 5046, 2531 W 643–9016). 22nd St., statewide 1–800–827–1000). San Juan 00921–3201 (10 Casia Street, Anderson 29621 (3030 North Highway 81, 787–641–7582). 864–224–5450). Vet Centers Clinics Beaufort 29902 (1 Pinckney Blvd., 843– Martin 57551 (East Hwy. 18, 605–685– 770–0444). 1300). Arecibo 00612 (Galeria Pacifico Road, PR– Florence 2950 (1822 Sally Hill Farms Road, Rapid City 57701 (621 6th St., Suite 101, 10, 787–641–7582 or 800–449–8729). 843–292–8383). Comerio 00782 (15 De Diego Street, 787– Kansas City St., 605–348–0077). Goose Creek 29445 (2418 NNPTC Circle, 522–2660). Sioux Falls 57104 (601 S. Cliff Ave., Suite 843–577–5011). Guayama 00784 (FISA Bldg., 1st Floor, C, 605–330–4552). Greenville 29605 (41 Park Creek Drive, Paseo Del Pueblo, km 0.3, lote no 6, 787– 864–299–1600). National Cemeteries 866–8886). Myrtle Beach 29577 (3381 Phillis Blvd., Black Hills 57785 (20901 Pleasant Valley Mayagu¨ ez 00682 (175 Algarrobo Avenue, 843–477–0177). Dr., Sturgis, 605–347–3830). 787–641–7582). Myrtle Beach-Market Common 29577 (1101 Ponce 00716–2001 (Paseo Del Veterano Fort Meade 57785 (P.O. Box 640, Old Stone Johnson Avenue, 843–477–0177). #1010, 787–641–7582). Rd., Sturgis, 605–347–3830). North Charleston 29406 (9237 University Pueblo Ward 00735 (PR–3, km 54.9, Lot #3, Hot Springs 57747 (500 N 5th St., 605– Blvd., 843–789–6400). 787–641–7582 or 800–449–8729). 347–3830). North Charleston 29406 (9229 University Utuado 00641 (Isaac Gonzalez Street, Blvd., Bldg. F, Suite 2A, 843–789–6400). TENNESSEE Equina Ledesma, 787–522–2650). Orangeburg 29118 (1767 Villagepark Drive, VA Medical Centers Vieques 00765 (Co Destino Carretera #997, 803–533–1335). 787–641–7582). Rock Hill 29732 (2670 Mills Park Drive, Memphis 38104 (1030 Jefferson Avenue, 901–523–8990). Regional Office 803–366–4848). Spartanburg 29303 (279 North Grove Mountain Home 37684 (Corner of Lamont San Juan 00918–1703 (150 Carlos Chardon Medical Park Drive, 864–582–7025). Street and Veterans Way, 423–926–1171). Ave., Suite 300. Send mail to Suite 232. Sumter 29150 (407 North Salem Avenue, Murfreesboro 37129 (3400 Lebanon Pike, Serving all Puerto Rico and the Virgin 803–938–9901). 615–867–6000). Islands, 1–800–827–1000). Nashville 37212 (1310 24th Avenue South, Regional Office Benefits Offices 615–327–4751). Columbia 29201 (1801 Assembly St., Clinics Mayaguez 00680 (Ave. Hostos 345, statewide 1–800–827–1000). Carretera 2, Frente al Centro Medico, 1–800– Arnold Air Force Base 37389 (225 Von 827–1000). Vet Centers Karman Road, 931–454–6134). Ponce 00731 (10 Paseo del Veterano, 1– Columbia 29201 (1513 Pickens St., 803– Athens 37303 (1320 Decatur Pike, 423– 800–827–1000). 765–9944). 746–1410). Arecibo 00612 (Gonzalo Marin 50, 1–800– Greenville 29601 (14 Lavinia Ave., 864– Chattanooga 37411 (6098 Debra Road, 827–1000). 271–2711). Suite 5200, Bldg. 6200, 423–893–6500). Vet Centers North Charleston 29406 (5603–A Rivers Chattanooga 37421 (1208 Pointe Center Ave., 843–747–8387). Drive, 423–893–6500). Arecibo 00612–4702 (52 Gonzalo Marin Clarksville 37043 (782 Weatherly Drive, National Cemeteries St., 787–879–4510/4581). 931–645–3552). Ponce 00731 (35 Mayo St., 787–841–3260). Beaufort 29902–3947 (1601 Boundary St., Clarksville Dental 37043 (2291 Dalton San Juan 00921 (Condominio Med. Ctr. 843–524–3925). Drive, Suite F). Plaza, Suite LC8A11, La Riviera, 787–749– Florence 29501 (803 E National Cemetery Cookeville 38501 (851 South Willow 4409). Rd., 843–669–8783). Avenue, Suite 108, 931–284–4060). National Cemetery SOUTH DAKOTA Columbia 38401 (833 Nashville Highway, 931–981–6930). Puerto Rico 00961 (Ave. Cementerio VA Medical Centers Dover 37058 (1406 Donelson Parkway, Nacional 50, Barrio Hato Tejas, Bayamon, 931–232–5138). 787–798–8400). Fort Meade 57741 (113 Comanche Road, 605–347–2511). Dyersburg 38024 (1067 Vendall Road, 731– RHODE ISLAND Hot Springs 57747 (500 North 5th Street, 287–7289). 605–745–2000). Gallatin 37066 (419 Steam Plant Road). VA Medical Center Sioux Falls 57105 (2531 West 22nd Street, Harriman 37748 (2305 North Gateway Providence 02908 (830 Chalkstone Avenue, 605–336–3230). Avenue, Suite 2, 865–882–2010). 401–273–7100). Jackson 38305 (180 Old Hickory Blvd., Clinics 731–661–2750). Clinic Aberdeen 57401 (2301 8th Avenue NE, Knoxville 37919 (1521 Downtown West Middletown 02842 (One Corporate Place, Suite 225, 605–229–3500). Blvd., 865–545–4592). 401–847–6239). Dakota Dunes 57049 (380 West Anchor Knoxville 37919 (8033 Ray Mears Blvd., Regional Office Drive, 605–232–2800). 865–545–4592). Eagle Butte 57625 (24348 Fox Ridge Road, Knoxville 37919 (1557 Downtown West Providence 02903 (380 Westminster St. 605–823–4574). Blvd., 865–545–4592). statewide 1–800–827–1000). Mission 57555 (153 Main Street, 605–856– LaFollette 37766 (130 Independence Lane, Vet Center 2295). 3rd Floor, 423–563–7666). Pierre 57501 (1601 North Harrison, Suite 6, McMinnville 37110 (1014 South Chancery Warwick 02889 (2038 Warwick Ave., 401– 605–945–1710). Street, 931–474–7700). 739–0167). Pine Ridge 57770 (Hospital Road, Pine Memphis 38127 (3461 Austin Peay SOUTH CAROLINA Ridge Indian Reservation, 605–867–2393). Highway, 901–261–4500). Rapid City 57701 (3625 5th Street, 605– Memphis 38132 (1689 Nonconnah Blvd., VA Medical Centers 718–1095). 901–271–4900). Charleston 29401 (109 Bee Street, 843– Watertown 57201 (4 19th Street NE, 605– Morristown 37813 (925 East Morris Blvd., 577–5011). 884–2420). 423–586–9100). Columbia 29209 (6439 Garners Ferry Road, Winner 57580 (660 West 2nd Street, 605– Nashville 37208 (1810 Albion Street, 615– 803–776–4000). 842–2443). 873–6700).

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Nashville 37217 (2 International Plaza, College Station 77845 (1651 Rock Prairie San Antonio 78240 (5788 Eckhert Road, 615–367–5928). Road, Suite 100, 979–680–0361). 210–699–2100). North Savannah 38372 (70 Harbert Drive, Conroe 77304 (690 South Loop 336 West, San Antonio 78249 (4350 Lockhill-Selma 731–727–8390). Suite 300, 936–522–4000 or 800–553–2278). Road, Suite 200, 210–949–3773). Rogersville 37857 (401 Scenic Drive, 423– Corpus Christi 78405 (5283 Old Seguin 78155 (526 East Court Street, 830– 235–1471). Brownsville Road, 361–806–5600). 372–1697). Sevierville 37862 (1124 Blanton Drive, Corpus Christi 78405 (205 South Sheppard AFB, 76311 (149 Hart Street, 865–286–6950). Enterprize Parkway, 361–939–6510). Bldg. 1200, 2nd Floor, 940–257–0001). Corpus Christi 78405 (5227 Old Sherman 75090 (3811 US 75 N, 903–487– Regional Office Brownsville Road, Suite 11, 361–806–5600). 0477). Nashville 37203 (110 9th Ave. South, Dalhart 79022 (325 Denver Avenue, 806– Stamford 79553 (1601 North Columbia, statewide 1–800–827–1000). 249–0673). 325–695–3252). Dallas 75224 (4243 South Polk Street, 214– Temple 76502 (4501 South General Bruce Vet Centers 372–8100). Drive, Suite 75, 254–778–4811 or 800–423– Chattanooga 37411 (951 Eastgate Loop Rd., Decatur 76234 (1713 South FM 51, 940– 2111). Bldg. 5700, Suite 300, 423–855–6570). 627–7001). Texas City 77591 (9300 Emmett F. Lowry Johnson City 37604 (1615A W Market St., Denton 76205 (2223 Colorado Blvd., 940– Expressway, Suite 206, 409–986–2900 or 423–928–8387). 891–6350). 800–553–2278). Knoxville 37914 (2817 E Magnolia Ave., El Paso 79936 (2400 Trawood Drive, Suite Tomball 77375 (1200 West Main Street, 865–545–4680). 200, 915–217–2428). 281–516–1505 or 800–553–2278). Memphis 38104 (1835 Union, Suite 100, Fort Worth 76119 (2201 SE Loop 820, 817– Tyler 75703 (7916 South Broadway 901–544–0173). 730–0000 or 800–443–9672). Avenue, 903–266–5900 or 855–375–6930). Nashville 37217 (Airpark Bus. Cen. 1, Suite Fort Stockton 79735 (2071 North Main, Victoria 77901 (1908 North Laurent Street, A–5, 1420 Donelson Pike, 615–366–1220). 432–685–2110). Suite 150, 361–582–7700). National Cemeteries Galveston 77550 (3828 Avenue N, 409– Regional Offices 741–3200 or 800–553–2278). Houston 77030 (6900 Almeda Rd., Chattanooga 37404 (1200 Bailey Ave., 423– Granbury 76048 (1210 Paluxy Medical statewide, 1–800–827–1000. Serves counties 855–6590). Circle, 817–326–3902). of Angelina, Aransas, Atacosa, Austin, Knoxville 37917 (939 Tyson St. NW, 423– Grand Prairie 75051 (2737 Sherman Street, Bandera, Bee, Bexar, Blanco, Brazoria, 855–6590). 214–857–3450). Brewster, Brooks, Caldwell, Calhoun, Memphis 38122 (3568 Townes Ave., 901– Greenville 75401 (4006 Wellington Road, Cameron, Chambers, Colorado, Comal, 386–8311). Suite 100A, 903–450–1143). Crockett, DeWitt, Dimitt, Duval, Edwards, Mountain Home 37684 (P.O. Box 8, VAMC, Katy 77450 (750 Westgreen Blvd., 281– Fort Bend, Frio, Galveston, Gillespie, Goliad, Bldg. 117, 423–979–3535). 578–4600 or 800–553–2278). Gonzales, Grimes, Guadeloupe, Hardin, Nashville 37115–4619 (1420 Gallatin Rd. S, La Grange 78945 (2 St. Marks Place, 800– Harris, Hays, Hidalgo, Houston, Jackson, Madison, 615–860–0086). 423–2111). Jasper, Jefferson, Jim Hogg, Jim Wells, TEXAS Lake Jackson 77566 (208 Oak Drive South, Karnes, Kendall, Kennedy, Kerr, Kimble, 979–230–4852 or 800–553–2278). Kinney, Kleberg, LaSalle, Lavaca, Liberty, VA Medical Centers Laredo 78041 (4602 North Bartlett, 956– Live Oak, McCulloch, McMullen, Mason, Amarillo 79106 (6010 Amarillo Boulevard 523–7850). Matagorda, Maverlck, Medina, Menard, West, 806–355–9703). Longview 75601 (1005 North Eastman Montgomery, Nacogdoches, Newton, Nueces, Big Spring 79720 (300 Veterans Blvd., 432– Road, 903–247–8262 or 800–957–8262). Orange, Pecos, Polk, Real, Refugio, Sabine, 263–7361). Lubbock 79412 (6104 Avenue Q South San Augustine, San Jacinto, San Patricio, Bonham 75418 (1201 East 9th Street, 903– Drive, 806–472–3400). Schleicher, Shelby, Starr, Sutton, Terrell, 583–2111 or 800–924–8387). Lufkin 75904 (2206 North John Redditt Trinity, Tyler, Uvalde, Val Verde, Victoria, Dallas 75216 (4500 South Lancaster Road, Drive, 836–671–4300 or 800–209–3120). Walker, Waller, Washington, Webb, Wharton, 214–742–8387 or 800–849–3597). McAllen 78503 (901 East Hackberry Willacy, Wilson, Zapata, Zavala)—Fiduciary El Paso 79930 (5001 North Piedras Street, Avenue, 956–618–7100). Duties for Arkansas, Louisiana, Oklahoma, 915–564–6100). New Braunfels 78130 (705 Landa Street, Texas (1–888–232–2571 Ext. 1855) Harlingen 78550 (2601 Veterans Drive, Suite C, 830–643–0717). Waco 76799 (One Veterans Plaza, 701 Clay; 956–291–9000 or 855–864–0516). Odessa 79762 (8050 East Highway 191, statewide, 1–800–827–1000; serves the rest of Houston 77030 (2002 Holcombe Blvd., 432–685–2110). the state. In Bowie County, the City of 713–791–1414). Palestine 75801 (2000 So. Loop 256, Suite Texarkana is served by Little Rock, AR, VA Kerrville 78028 (3600 Memorial Blvd., 124, 903–723–9006). Regional Office, 1–800–827–1000.). 866–487–1653). Plano 75075 (3804 West 15th Street, 972– Benefits Offices San Antonio 78229 (7400 Merton Minter 801–4200). Abilene 79602 (Taylor County Plaza Bldg., Blvd., 210–617–5300). Richmond 77469 (22001 Southwest Suite 103, 400 Oak St., 1–800–827–1000). Temple 76504 (1901 Veterans Memorial Freeway, Suite 200, 832–595–7700 or 800– Amarillo 79106 (6010 Amarillo Blvd. W., Drive, 254–778–4811 or 800–423–2111). 553–2278). 1–800–827–1000). Waco 76711 (4800 Memorial Drive, 254– San Angelo 76904 (4240 Southwest Blvd., Austin 78741 (2901 Montopolis Dr., Room 752–6581 or 800–423–2111). 325–658–6138). 108, 1–800–827–1000). San Antonio 78201 (4522 Fredericksburg Corpus Christi 78405 (4646 Corona Dr., Clinics Road, Suites A10 and A88, 210–732–1802). Suite 150, 1–800–827–1000). Abilene 79606 (3850 Ridgemont, 325–695– San Antonio 78217 (2391 NE Loop 410, Dallas 75216 (4500 S. Lancaster Rd., 1– 3252). Suite 101, 210–590–0247). 800–827–1000). Austin 78744 (7901 Metropolis Drive, 800– San Antonio 78221 (1714 SW Military El Paso 79930 (5001 Piedras Dr., 1–800– 423–2111). Drive, Suite 101, 210–923–0777). 827–1000). Beaumont 77707 (3420 Veterans Circle, San Antonio 78222 (4243 East Southcross Ft. Worth 76104–4856 (300 W. Rosedale 409–981–8550 or 800–833–7734). Blvd., Suite 204, 210–337–4316). St., 1–800–827–1000). Beeville 78102 (302 South Hillside Drive, San Antonio 78222 (4610 East Southcross Lubbock 79410 (6104 Ave. Q S Drive, Rm. 361–358–9912). Blvd., Suite 100, 210–648–1491). 132, 1–800–827–1000). Brownwood 76801 (2600 Memorial Park San Antonio 78228 (4318 Woodcock, Suite McAllen 78503 (109 Toronto Ave., 1–800– Drive, 325–641–0568). 120, 210–736–4051). 827–1000). Cedar Park 78613 (1401 Medical Parkway, San Antonio Dental Clinic 78229 (8410 San Antonio 78240 (5788 Eckert Rd., 1– Bldg. C, Suite 400, 800–423–2111). Data Point, 210–949–8900). 800–827–1000). Childress 79201 (1001 Highway 83 North, San Antonio 78232 (17440 Henderson Temple 76504 (1901 Veterans Memorial 940–937–8528). Pass, 210–483–2900). Dr., Room 5G38 [BRB], 1–800–827–1000).

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Tyler 75701 (1700 SSE Loop 323, Suite Vets Centers Vansant 24656 (1941 Lover’s Gap Rd., 310, 1–800–827–1000). Provo 84604 (1807 No. 1120 West, 801– Suite A, 276–597–2305). Virginia Beach 23462 (244 Clearfield Ave., Vet Centers 377–1117). Salt Lake City 84106 (1354 East 3300 757–722–9961). Amarillo 79109 (3414 Olsen Blvd., Suite E, South, 801–584–1294). Wytheville 24382 (165 Peppers Ferry Rd., 806–354–9779). 276–223–5400). Austin 78745 (1110 W Will Cannon Dr., VERMONT Regional Office Suite 301, 512–416–1314). VA Medical Center Corpus Christi 78411 (4646 Corona, Suite Roanoke 24011 (210 Franklin Rd. SW, White River Junction 05009 (215 North 253, 361–854–9961). statewide 1–800–827–1000)—Fiduciary Main Street, 802–295–9363). Dallas 75231 (10501 N Central Expressway, Duties for District of Columbia, Kentucky, Suite 213, 214–361–5896). Clinics Maryland, Virginia, West Virginia (1–800– El Paso 79925 (1155 Westmoreland, Suite Bennington 05201 (186 North Street, 802– 933–5499), 121, 915–772–0013). 440–3300). Vets Centers Fort Worth 76104 (1305 W Magnolia, Suite Brattleboro 05301 (71 GSP Drive, 802–251– B, 817–921–9095). 2200). Alexandria 22309 (8796 Sacramento Dr., Harker Heights 76548 (302 Millers Burlington 05401 (128 Lakeside Ave., Suite Suite D&E, 703–360–8633). Crossing, Suite #4, 254–953–7100). 260, 802–657–7000). Norfolk 23517 (2200 Colonial Ave., Suite 3, Houston 77006 (2990 Richmond Ave., Newport 05855 (1734 Crawford Farm Rd., 757–623–7584). Suite 325, 713–523–0884). 802–624–2400). Richmond 23230 (4902 Fitzhugh Ave., Houston 77024 (701 N Post Oak Rd., Suite Rutland 05701 (232 West Street, 802–772– 804–353–8958). 102, 713–682–2288). 2300). Roanoke 24016 (350 Albemarle Ave. SW, Laredo 78041 (6020 McPherson Rd., 1A, Regional Office 540–342–9726). 956–723–4680). White River Junction 05001 (215 N Main National Cemeteries Lubbock 79410 (3208 34th St., 806–792– St., 802–296–5177 or 1–800–827–1000 from Alexandria 22314 (1450 Wilkes St., 703– 9782). within Vermont). McAllen 78504 (801 Nolana, Suite 140, 221–2183/2184). 956–631–2147). Vets Centers Balls Bluff 22075 (Rte. 7, Leesburg, 540– Midland 79703 (3404 W Illinois, Suite 1, South Burlington 05403 (359 Dorset St., 825–0027). 432–697–8222). 802–862–1806). City Point 23860 (10th Ave. & Davis St., San Antonio 78212 (231 W Cypress St., White River Junction 05001 (222 Holiday Hopewell, 804–795–2031). Suite 100, 210–472–4025). Inn Dr., #2 Gilman Office Complex, 802–295– Cold Harbor 23111 (6038 Cold Harbor Rd., 2908 or 1–800–649–6603). Mechanicsville, 804–795–2031). National Cemeteries Culpeper 22701 (305 U.S. Ave., 540–825– Dallas-Fort Worth 75211 (2000 Mountain VIRGINIA 0027). Creek Parkway, 214–467–3374). VA Medical Centers Danville 24541 (721 Lee St., 704–636– Fort Bliss 79906 (Box 6342, 5200 Fred 2661). Hampton 23667 (100 Emancipation Drive, Wilson Rd., 915–564–0201). Fort Harrison 23231 (8620 Varina Rd., 757–722–9961). Richmond, 804–795–2031). Fort Sam Houston 78209 (1520 Harry Richmond 23249 (1201 Broad Rock Wurzbach Rd., San Antonio, 210–820–3891/ Boulevard, 804–675–5000). Glendale 23231 (8301 Willis Church Rd., 3894). Salem 24153 (1970 Roanoke Boulevard, Richmond, 804–795–2031). Houston 77038 (10410 Veterans Memorial 540–982–2463). Hampton 23667 (Cemetery Rd. at Marshall Dr., 281–447–8686). Ave., 757–723–7104). Kerrville 78028 (VAMC, 3600 Memorial Clinics Hampton 23667 (VAMC, Emancipation Dr., Blvd., 210–820–3891/3894). Bristol 24202 (2426 Lee Highway, 276– 757–723–7104). San Antonio 78202 (517 Paso Hondo St., 645–4520). Quantico 22172 (P.O. Box 10, 18424 Joplin 210–820–3891/3894). Charlottesville 22911 (590 Peter Jefferson Rd. (Rte. 619), 703–221–2183/2184). Pkwy., 2nd Floor, Suite 253, 434–293–3890). Richmond 23231 (1701 Williamsburg Rd., UTAH Chesapeake 23320 (1987 S Military Hwy., 804–795–2031). VA Medical Center 757–722–9961). Seven Pines 23150 (400 E Williamsburg Danville 24540 (705 Piney Forest Rd., 434– Salt Lake City 84148 (500 Foothill Drive, Rd., Sandston, 804–795–2031). 710–4210). 801–582–1565). Staunton 24401 (901 Richmond Ave., 540– Fort Belvoir 22060 (9300 DeWitt Loop 825–0027). Clinics Sunrise Pavilion, 571–231–2408). Winchester 22601 (401 National Ave., 540– Fredericksburg 22401 (130 Executive Moab 84403 (702 South Main Street, 435– 825–0027). Center Parkway, 540–370–4468). 719–4144). Fredericksburg at Southpoint 22408 (10401 VIRGIN ISLANDS Ogden 84403 (982 Chambers Street, 801– Spotsylvania Ave., Suite 300, 540–693– Clinics 479–4105). 3140). Orem 84057 (1443 West 800 North, Suite Harrisonburg 22801 (1755 S High Street, St. Croix 00850–4701 (105553 Kingshill, 302, 801–235–0953). 304–263–0811 or 800–817–3807). The Village Mall, Suite 113, RR 2 Box 12, Price 84501 (189 South 600 West, Suite B, Jonesville 24263 (32613 Wilderness Rd., 340–778–5553). 435–613–0342). Suite 101, 276–346–2595). St. Thomas 00802 (50 Estates Thomas, Roosevelt 84066 (245 West 200 North, 435– Lynchburg 24501 (1600 Lakeside Dr., 434– Suite 101, 340–774–6674). 725–1050). 316–5000). Benefits St. George 84790 (230 North 1680 East, Marion 24354 (4451 Lee Highway, 276– Building N, 435–634–7608). 783–2126). Served by San Juan, Puerto Rico, VA South Ogden 84403 (5957 Fashion Pointe Norton 24656 (654 Highway 58 East, 276– Regional Office, 1–800–827–1000. Dr., Suite 103, 801–479–4105). 597–2305). Vets Centers West Valley City 84120 (2750 South 5600 Staunton 24401 (102 Lacy B. King Way, West, Suite B, 801–417–5734). 540–886–5777). St. Croix 00850 (Box 12, RR 02, Village Stephens City 22602 (170 Prosperity Drive, Mall, 113, RR 2 Box 10556, Kingshill, 340– Regional Office 800–817–3807). 778–5553). Salt Lake City 84158 (P.O. Box 581900, 550 Tazewell 24651 (388 Ben Bolt Ave., 276– St. Thomas 00802 (9800 Buchaneer Mall, Foothill Dr., statewide 1–800–827–1000). 988–8860). Suite 8, 340–774–6674).

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WASHINGTON Clinics Janesville 53545 (2419 Morse Street, 608– 758–9300). VA Medical Centers Charleston 25304 (700 Technology Dr., 304–746–5300). Kenosha 53140 (8207 22, 262–653–9286). Seattle 98108 (1660 S Columbian Way, Franklin 26807 (91 Pine Street, 304–263– La Crosse 54601 (2600 State Road, Phone: 206–762–1010 or 800–329–8387). 0811 or 800–817–3807). 608–784–3886). Spokane 99205 (4815 N Assembly Street, Gassaway 26624 (40 Reston Place, 304– Madison West 53711 (1 Science Court, 509–434–7000). 364–4501). 608–280–7059). Tacoma 98493 (9600 Veterans Dr., 253– Greenbrier County 24970 (228 Shamrock Rhinelander 54501 (639 West Kemp Street, 582–8440 or 800–329–8387). Lane, 304–497–3900). 715–362–4080). Vancouver 98661 (1601 E 4th Plain Blvd., Lenore 25676 (2867 Route 65, 304–475– Rice Lake 54843 (2700A College Drive, 360–696–4061). 3000). 715–236–3355). Walla Walla 99362 (77 Wainwright Drive, Parkersburg 260101 (2311 Ohio Avenue, Twin Ports 54880 (3520 Tower Ave., 715– 509–525–5200 or 888–687–8863). Suite D, 304–485–1599). 398–2400). Parsons 26287 (206 Spruce Street, 304– Union Grove 53182 (21425 Spring Street, Clinics 478–2219). 262–878–7001). Bellevue 98005 (13033 Bel-Red Road, Suite Petersburg 26847 (15 Grant Street, 304– Wausau 54401 (515 South 32nd Avenue, 210, 844–296–6566). 263–0811 or 800–817–3807). 715–842–2834). Bremerton 98312 (925 Adele Avenue, 360– Princeton 24740 (150 Court House Rd., Wisconsin Rapids 54495 (555 West Grand 473–0340). Suite 201, 304–323–4020). Ave., P.O. Box 26, 715–424–4682). Chehalis 98532 (151 NE Hampe Way, Suite Westover 26501 (40 Commerce Dr., Suite B2–6, 360–748–3049). 101, 304–292–7535). Regional Office Federal Way 98003 (34617 11th Place Regional Office Milwaukee 53214 (5400 W National Ave., South, Suite 301, 253–336–4142). statewide 1–800–827–1000). Huntington 25701 (640 Fourth Ave., Mount Vernon 98274 (307 S 13th Street, statewide 1–800–827–1000; counties of Vets Centers Suite 200, 360–848–8500). Brooke, Hancock, Marshall, Ohio, served by Madison 53703 (706 Williamson St., 608– North Seattle 98125 (12360 Lake City Way Pittsburgh, Pa., VA Regional Office). NE, Suite 200, 206–384–4382). 264–5342). Port Angeles 98362 (1114 Georgiana Street, Vets Centers Milwaukee 53218 (5401 N 76th St., 414– 536–1301). 360–565–7420). Beckley 25801 (101 Ellison Ave., 304–252– Richland 99352 (825 Jadwin Ave., Suite 8220). National Cemetery 250, 509–946–1020). Charleston 25302 (521 Central Ave., 304– Wood 53295–4000 (5000 W National Ave., Wenatchee 98801 (2530 Chester-Kimm 343–3825). Bldg. 1301, Milwaukee, 414–382–5300). Road, 509–663–7615). Huntington 25701 (3135 16th St. Rd., Suite Yakima 98902 (717 Fruitvale Blvd., 509– 11, 304–523–8387). WYOMING 966–0199). Martinsburg 25401 (900 Winchester Ave., 304–263–6776). VA Medical Centers Regional Office Morgantown 26508 (1083 Greenbag Rd., Cheyenne 82001 (2360 E Pershing Blvd., Seattle 98174 (Fed. Bldg., 915 2nd Ave., 304–291–4303). 307–778–7550). statewide 1–800–827–1000). Princeton 24740 (905 Mercer St., 304–425– Sheridan (1898 Fort Road, 307–672–3473 5653). or 866–822–6714). Benefits Offices Wheeling 26003 (1206 Chapline St., 304– Fort Lewis 98433 (Waller Hall Rm. 700, 232–0587). Clinics P.O. Box 331153, 253–967–7106). National Cemeteries Afton 83110 (125 South Washington Street, Bremerton 98337 (W Sound Pre-Separation 877–309–8931). Center, 262 Burwell St., 360–782–9900). Grafton 26354 (431 Walnut St., 304–265– Casper 82601 (4140 S Poplar St., 1–866– 2044). 338–5168). Vets Centers West Virginia 26354 (Rt. 2, Box 127, Cody 82414 (1432 Rumsey Ave., 307–587– Bellingham 98226 (3800 Byron Ave., Suite Grafton, 304–265–2044). 4015). 124, 360–733–9226). WISCONSIN Evanston 82920 (1565 South Highway 150, Seattle 98121 (2030 9th Ave., Suite 210, Suite E, 877–733–6128). 206–553–2706). VA Medical Centers Gillette 82718 (604 Express Dr., 866–621– Spokane 99206 (100 N Mullan Rd., Suite Madison 53705 (2530 Overlook Terrace, 1887). 102, 509–444–8387). 608–256–1901 or 888–478–8321). Newcastle 57555 (1124 Washington Blvd., Tacoma 98409 (4916 Center St., Suite E, Milwaukee 53295 (5000 West National 307–746–4491). 253–565–7038). Avenue, 414–384–2000). Rawlins 82301 (1809 East Daley Street, Yakima 98901 (1111 N First St., 509–457– Tomah 54660 (500 E Veterans Street, 608– 307–324–5578). 2736). 372–3971). Riverton 82531 (2300 Rose Lane, 1–866– 338–2609). National Cemetery Clinics Rock Springs 82901 (1401 Gateway Blvd., Tahoma 98042–4868 (18600 SE 240th St., Appleton 54914 (10 Tri-Park Way, 920– Suite 1 866–381–2830). Kent, 425–413–9614). 831–0070). Worland 82401 (510 South 15th Street, Baraboo 53913 (1670 South Blvd., 608– Vancouver Barracks 98663 (1455 E 4th Suite D, 877–483–0370). Plain Blvd., 503–273–5253). 356–9318). Beaver Dam 53916 (215 Corporate Drive, Benefits Office WEST VIRGINIA Suite D, 920–356–9415). Cheyenne 82001 (2360 E. Pershing Blvd., Chippewa Falls 54729 (475 Chippewa Mall VA Medical Centers statewide 1–800–827–1000). Dr., Suite 418, 715–720–3780). Beckley 25801 (200 Veterans Avenue, 304– Clark County 54460 (8 Johnson Street, 715– Vets Centers 255–2121). 229–4701). Casper 82601 (1030 North Poplar, Suite B, Clarksburg 26301 (One Medical Center Cleveland 53015 (1205 North Avenue, 307–261–5355). Drive, 304–623–3461 or 800–733–0512). 920–693–5600). Cheyenne 82001 (3219 East Pershing Blvd., Huntington 25704 (1540 Spring Valley Green Bay 54311 (2851 University Ave., 307–778–7370). Drive, 304–429–6741). 920–431–2530 or 877–204–7970). Martinsburg 25405 (510 Butler Avenue, Hayward 54843 (10369 State Highway 27, [FR Doc. 2020–21426 Filed 10–1–20; 8:45 am] 304–263–0811 or 800–817–3807). 715–934–5454). BILLING CODE 8320–01–P

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Part IV

Department of Homeland Security

8 CFR Part 213a Affidavit of Support on Behalf of Immigrants; Proposed Rule

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DEPARTMENT OF HOMELAND rulemaking rather than those specific to I. Clarifying Affidavit Requirements for SECURITY the collection of information will not be Certain Children of U.S. Citizens considered by DHS and USCIS. Acquiring U.S. Citizenship 8 CFR Part 213a J. Miscellaneous Other Changes ADDRESSES: You may submit comments K. Transition Period [CIS No. 2655–20; DHS Docket No. USCIS– on the entirety of this proposed rule V. Statutory and Regulatory Requirements 2019–0023] package, identified by DHS Docket No. A. Executive Orders: 12866 and 13563 USCIS–2019–0023, through the Federal B. Regulatory Flexibility Act RIN 1615–AC39 eRulemaking Portal: http:// C. Small Business Regulatory Enforcement Affidavit of Support on Behalf of www.regulations.gov. Follow the Fairness Act of 1996 D. Congressional Review Act Immigrants website instructions for submitting comments. E. Unfunded Mandates Reform Act of 1995 AGENCY: U.S. Citizenship and Comments submitted in a manner F. Executive Order 13132: Federalism Immigration Services, Department of other than the one listed above, G. Executive Order 12988: Civil Justice Reform Homeland Security (DHS). including emails or letters sent to DHS H. Paperwork Reduction Act ACTION: Notice of proposed rulemaking. or USCIS officials, will not be I. Family Assessment considered comments on the proposed J. Executive Order 13175: Consultation and SUMMARY: The U.S. Department of rule and may not receive a response Coordination With Indian Tribal Homeland Security (DHS) proposes to from DHS. Please note that DHS and Governments amend its regulations governing the USCIS cannot accept any comments that K. National Environmental Policy Act affidavit of support requirements under are hand delivered or couriered. In (NEPA) section 213A of the Immigration and addition, USCIS cannot accept L. National Technology Transfer and Nationality Act (INA or the Act). Certain comments contained on any form of Advancement Act M. Signature immigrants are required to submit an digital media storage devices, such as Affidavit of Support Under Section CDs/DVDs and USB drives. Due to Table of Abbreviations 213A of the INA (Affidavit) executed by COVID–19, USCIS is also not accepting DHS—Department of Homeland Security a sponsor who agrees to provide mailed comments at this time. If you DOJ—Department of Justice financial support to the sponsored cannot submit your comment by using DOS—Department of State immigrant and accepts liability for http://www.regulations.gov, please EOIR—Executive Office for Immigration reimbursing the costs of any means- contact Samantha Deshommes, Chief, Review tested public benefits a sponsored Regulatory Coordination Division, FCRA—Fair Credit Reporting Act immigrant receives while the Affidavit Office of Policy and Strategy, U.S. HHS—Department of Health and Human is in effect pursuant to section Citizenship and Immigration Services, Services 213A(a)(2) of the INA. DHS proposes to Department of Homeland Security, by INA—Immigration and Nationality Act INS—Immigration and Naturalization Service clarify how a sponsor demonstrates the telephone at 202–272–8377 for alternate USCIS—U.S. Citizenship and Immigration means to maintain income as required instructions. Services under section 213A(f)(6) of the Act such FOR FURTHER INFORMATION CONTACT: as revising the documentation that Mark Phillips, Residence and I. Public Participation sponsors and household members must Naturalization Chief, Office of Policy DHS invites all interested parties to submit to meet the requirements under and Strategy, U.S. Citizenship and participate in this rulemaking process section 213A(f) of the Act. DHS Immigration Services, DHS, 20 by submitting written data, views, proposes to modify when an applicant Massachusetts NW, Washington, DC comments, and arguments on all aspects is required to submit an Affidavit from 20529–2140; telephone 202–272–8377. of this proposed rule. DHS also invites a joint sponsor, who may be a SUPPLEMENTARY INFORMATION: comments that relate to the economic, household member for purposes of environmental, or federalism effects that executing a Contract Between Sponsor Table of Contents might result from this proposed rule. and Household Member (Contract), and I. Public Participation Comments must be submitted in who is considered as part of a sponsor’s II. Executive Summary English, or an English translation must household size. DHS also proposes to A. Purpose and Summary of the Regulatory be provided. Comments that will update reporting and information Action provide the most assistance to USCIS in sharing requirements between B. Summary of Legal Authority C. Costs and Benefits implementing these changes will authorized parties and USCIS. III. Background and Purpose reference a specific portion of the DATES: Written comments must be A. Statutory Authority proposed rule, explain the reason for submitted on this proposed rulemaking B. Prior Rulemaking any recommended change, and include on or before November 2, 2020. C. Current Processing of an Affidavit of data, information, or authority that Comments on the collection of Support Under Section 213A of the INA support such recommended change. information (see Paperwork Reduction D. Reimbursement Process Instructions: If you submit a E. Information Sharing Act section) must be received on or F. Problems Arising From Current comment, you must include the agency before December 1, 2020. Comments on Processes name (U.S. Citizenship and Immigration both the proposed rulemaking and the IV. Discussion of Proposed Rule Services) and the DHS Docket No. collection of information received on or A. Requiring Joint Sponsors in Certain USCIS–2019–0023 for this rulemaking. before November 2, 2020 will be Circumstances Regardless of the method used for considered by DHS and USCIS. Only B. Changes to ‘‘Household Income’’ submitting comments or materials, all comments on the collection of Definition submissions will be posted, without information received between C. Changes to ‘‘Household Size’’ change, to the Federal eRulemaking D. Revised Evidentiary Requirements November 2, 2020 and December 1, E. Bank Account Information Portal at http://www.regulations.gov, 2020 will be considered by DHS and F. Address Change Requirements and will include any personal USCIS. Note: Comments received after G. Information Sharing Provisions information you provide. Therefore, November 2, 2020 on the proposed H. Revised Definitions submitting this information makes it

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public. You may wish to consider returns for 3 years, credit reports, credit Form I–864A. Currently, there is no limiting the amount of personal scores, and bank account information. limitation on the number of household information that you provide in any Second, this proposed rule would also members who may execute a Form I– voluntary public comment submission amend the regulations to specify that a 864A. DHS intends to permit only a you make to DHS. DHS may withhold sponsor’s prior receipt of any means- sponsor’s spouse or an intending information provided in comments from tested public benefits and a sponsor’s immigrant with the same principal public viewing that it determines may failure to meet support obligations on residence (same principal residence impact the privacy of an individual or another executed Affidavit, or upon immigrating, in the case of an is offensive. For additional information, household member obligations on a intending immigrant consular please read the Privacy and Security previously executed Contract, will processing) as the sponsor to execute Notice available at http:// impact the determination as to whether Form I–864A, which will better ensure www.regulations.gov. the sponsor has the means to maintain that the income a household member the required income threshold to Docket: For access to the docket and promises to make available to support support the immigrant. Receipt of to read background documents or the intending immigrant is actually means-tested public benefits by a comments received, go to http:// available. sponsor may indicate that the sponsor Fourth, this proposed rule would www.regulations.gov, referencing DHS does not have the financial means to update and improve how means-tested Docket No. USCIS–2019–0023. You may maintain an annual income equal to at public benefit-granting agencies obtain also sign up for email alerts on the least 125 percent of the Federal poverty information from USCIS and how they online docket to be notified when line,1 or 100 percent of the Federal can provide information to USCIS. The comments are posted or a final rule is poverty line for an individual who is on current regulations require a duly issued published. active duty (other than active duty for subpoena before USCIS can provide a II. Executive Summary training) in the Armed Forces of the certified copy of the Form I–864 or United States and who is petitioning for Form I–864EZ for use in any action to A. Purpose and Summary of the his or her spouse or child,2 and is enforce the support obligation.3 The Regulatory Action relevant to determining whether the proposed rule would eliminate the DHS is proposing to amend its sponsor can, in fact, provide such requirement of a duly issued subpoena regulations related to the Affidavit of support to the intending immigrant before USCIS will provide a certified Support Under Section 213A of the INA during the period of enforceability. copy of Form I–864 or Form I–864EZ to (Affidavit). The proposed rule changes Similarly, whether a sponsor has a requesting party and instead allow certain requirements for the Affidavit previously failed to fulfill his or her requesting parties to submit a formal and is intended to better ensure that all support obligations is relevant to request for an Affidavit or a Contract to sponsors, as well as household members determining whether the sponsor will USCIS. A requestor will submit a formal who execute a Contract Between meet future support obligations. request using a new form created by Sponsor and Household Member Specifically, this proposed rule would DHS, G–1563, Request for Certified (Contract), have the means to maintain require an applicant submitting an Copy of Affidavit of Support Under income at the applicable income application for an immigrant visa or Section 213A of the INA or Contract threshold and are capable of meeting adjustment of status on or after the Between Sponsor and Household their support obligations under section effective date of this rule to submit a Member. DHS also proposes to revise 213A of the INA, 8 U.S.C. 1183a, during Form I–864 executed by a joint sponsor the process for informing USCIS about the period in which the Affidavit or the if a petitioning sponsor or substitute judgments obtained against sponsors Contract is enforceable. This proposed sponsor received any means-tested and indigency determinations to give rule is also aimed at strengthening the public benefits on or after the effective USCIS flexibility to determine a more enforcement mechanism for the date of this rule and within the 36- efficient mechanism for information Affidavit so that sponsors and month period prior to executing the reporting. The current regulations household members who agree to use Affidavit, or if the petitioning sponsor require that copies of judgments and their income and assets to support the or substitute sponsor had a judgment indigency determinations must be sponsored immigrant are held entered against him or her at any time mailed to a specific USCIS office in 4 accountable if the sponsored immigrant for failing to meet any prior sponsorship Washington, DC The proposed rule ultimately receives means-tested public or household member obligation. would remove the address specified in 5 benefits during the period in which the Furthermore, this proposed rule would the regulation and permit USCIS to Affidavit or the Contract is enforceable. only allow an individual to be a joint provide a different mechanism for sponsor if he or she has neither received submitting copies of judgments and First, this proposed rule would means-tested public benefits on or after indigency determinations. update the evidentiary requirements for the effective date of this rule and within Fifth, DHS proposes to update the sponsors submitting an Affidavit, which the 36 month period prior to executing regulation to clarify which categories of will better enable immigration officers the Affidavit, nor had a judgment aliens are exempt from the Affidavit and immigration judges to determine entered against him or her at any time requirement, and to add and revise whether the sponsor has the means to for failing to meet a prior sponsorship definitions to provide greater clarity and maintain an annual income at or above or household member obligation. to conform to statutory changes made the applicable threshold, and whether Third, this proposed rule would since the current regulation was the sponsor can, in fact, provide such revise the current regulatory adopted in 2006. support to the intending immigrant and requirements concerning who can Sixth, DHS proposes to update the meet all support obligations during the qualify as a household member for regulation by clarifying that the period the Affidavit is in effect. purposes of submitting and executing a notification of change of address Specifically, this proposed rule would require sponsors and household 1 See INA section 213A(f)(1)(E), 8 U.S.C. 3 See 8 CFR 213a.4(a)(3). members who execute an Affidavit or 1183a(f)(1)(E). 4 See 8 CFR 213a.4(c). Contract to provide Federal income tax 2 See INA section 213A(f)(3), 8 U.S.C. 1183a(f)(3). 5 See 8 CFR 213a.4(c)(3).

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requirement under section 213A(d) of executing Form I–864A as a household 864A, and Form I–864EZ,7 as well as the Act, 8 U.S.C. 1183a(d) also applies member who would now be required to new requirements for completing these to household members who execute a submit Form I–865 to provide notice of forms, including: Contract in addition to sponsors. This a change of address after moving. • Obtaining credit reports and credit change allows DHS to provide current Moreover, the proposed rule would scores, • household member information to produce some cost savings for obtaining Internal Revenue Service means-tested benefit granting agencies immigrants applying for adjustment of (IRS)-issued certified copies or and appropriate entities in accordance status who would have needed to transcripts of Federal income tax returns with section 213A of the Act, 8 U.S.C. for the 3 most recent taxable years, and request an exemption from filing an • 1183a(a), and creates parity between the Affidavit as DHS is proposing to opportunity cost of time to file IRS requirements of sponsors and household eliminate Form I–864W for use when Form 4506, Request for Copy of Tax members. filing Form I–485. Instead, individuals Return, to obtain IRS-issued certified Last, DHS proposes other minor would be required to provide the Federal income tax returns for completing Form I–864 and Form I– revisions to the regulations to update information previously requested on definitions, eliminate form numbers, 864EZ. Form I–864W when filing Form I–485. The estimated new quantified costs of and revise outdated terminology. DHS DHS has determined that the proposes to replace the term ‘‘affidavit the proposed rule also would be based information an applicant provides on on the proposed requirement that those of support attachment’’ with ‘‘Contract Form I–485 would be sufficient for an Between Sponsor and Household who file Form I–864A use Form I–865 adjudications officer to be able to verify to provide notice of a change of address Member’’, which is the name of the whether an immigrant is statutorily relevant form (Form I–864A), after moving. required to file an Affidavit. throughout the regulation. DHS also Over the first 10 years of proposes to clarify that, for purposes of This proposed rule also would impose implementation, DHS estimates the total an Affidavit and a Contract, assets used new costs on those from a party or quantified new net costs of the proposed to meet the required threshold must be entity authorized to bring an action to rule would be $2,403,146,230 those that can be readily converted to enforce an Affidavit or Contract making (undiscounted). DHS estimates that the cash. a formal request using the proposed new 10-year discounted total net costs of this DHS is also proposing corresponding Form G–1563, Request for Certified proposed rule would be about changes to the Form I–864, Affidavit of Copy of Affidavit of Support Under $2,049,932,479 at a 3 percent discount Support Under Section 213A of the Act, Section 213A of the INA or Contract rate and about $1,687,869,350 at a 7 Form I–864 EZ, Affidavit of Support Between Sponsor and Household percent discount rate. Under Section 213A of the Act, and Member, so that USCIS may provide a The primary benefit of the proposed Form I–864A, Contract Between certified copy of the requested Affidavit rule would be to better ensure that the Sponsor and Household Member. or Contract that has been executed on sponsored immigrant is financially Simultaneously, DHS is proposing to behalf of a sponsored immigrant for use supported as is required by law and that eliminate the use and consideration of as evidence in any action of means-tested public benefit agencies the Request for Exemption for Intending enforcement. DHS estimates the total can more efficiently seek reimbursement Immigrant’s Affidavit of Support, Form cost for filing the proposed new Form from sponsors and household members I–864W, currently applicable to certain G–1563 would be approximately $779 when a sponsored immigrant receives classes of aliens. annually.6 any means-tested public benefit. DHS also anticipates the proposed B. Summary of Legal Authority DHS estimates the total new rule to produce benefits by quantified net costs imposed by the The Secretary of Homeland Security’s strengthening the enforcement proposed rule would be $240,314,623 authority for the proposed regulatory mechanism for Affidavits and Contracts annually for sponsors filing an Affidavit amendments is found in section 213A of through elimination of the subpoena for an intending immigrant using Form the Act, 8 U.S.C. 1183a, which governs requirement in 8 CFR 213a.4 to make it I–864 and Form I–864EZ, for those Affidavits, and section 212(a)(4) of the easier for means-tested public benefits executing a Contract using Form I– Act, 8 U.S.C. 1182(a)(4), which governs granting agencies to recover payment for 864A, and for those submitting a notice public charge inadmissibility, including any means-tested public benefits that an of a change of address after moving which aliens are required to execute an intending immigrant receives during the using Form I–865, for those filing Form Affidavit. In addition, section 103(a)(3) period in which an Affidavit or a G–1563 to make a formal request for a of the Act, 8 U.S.C. 1103(a)(3), Contract is enforceable. The proposed certified copy of and Affidavit or authorizes the Secretary to establish rule would update the evidentiary Contract, as well as accounting for the such regulations as he deems necessary requirements for sponsors submitting an estimated cost savings for immigrants for carrying out his authority under the Affidavit and household members applying for adjustment of status who INA. submitting Contracts, which would would have needed to request an provide immigration officers and C. Costs and Benefits exemption from filing an Affidavit as immigration judges more effective ways The proposed rule would impose new DHS is proposing to eliminate Form I– to determine whether individuals have net costs on the population of sponsors 864W for use when filing Form I–485. the means to maintain an annual executing an Affidavit using Form I–864 The estimated new quantified net costs income at or above the outlined income or Form I–864EZ, as well as on the of the proposed rule would be based on threshold and provide financial support population of household members who an increased opportunity costs of time to the intending immigrant and meet all execute a Contract using Form I–864A for completing Form I–864, Form I– support obligations during the period an so that a sponsor can use the household member’s income and/or assets to 6 Calculation: $31.17 (cost per filer to file Form 7 The quantified cost of the new requirement to G–1563) * 25 (estimated annual population who provide bank account information for those demonstrate means to maintain income. would make a formal request using Form G–1563) individuals filing Forms I–864, I–864A and I–864EZ Additionally, the proposed rule would = $779.25 = $779 (rounded) annual total cost to file are accounted for in the increased time burden impose new net costs on the population Form G–1563. estimate for completing these forms.

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Affidavit is in effect. Additionally, the USCIS about individuals who are Table 1 provides a more detailed proposed rule would update and seeking means-tested public benefits summary of the proposed provisions improve how means-tested public and how means-tested public benefit- and their impacts. benefit-granting agencies obtain granting agencies provide information to immigration status information from USCIS. TABLE 1—SUMMARY OF MAJOR PROVISIONS AND ECONOMIC IMPACTS OF THE PROPOSED RULE

Provisions Proposed provision Estimated impact of proposed provision

Amending 8 CFR 213a.1. Defi- To add new and update existing Quantitative: nitions. definitions. Costs: Revising 8 CFR 213a.2. Use of Outlines circumstances, require- • Total annual net costs of the proposed rule would be about $240.3 million, including: Affidavit of Support. ments, and exemptions for • $226.6 million to applicants who must file Form I–864; executing an Affidavit of Sup- • $10.63 million to those who must complete Form I–864A; port Under Section 213A of • $6.75 million to applicants who must file Form I–864EZ; the INA. • $3.68 million cost savings to applicants from eliminating Form I–864W; Adding 8 CFR 213a.3 Change Requires sponsors and house- • $2,751 to those who must file Form I–865; and of Address. hold members to notify • $779 to those who file the proposed new Form G–1563. USCIS of any change of ad- • Total net costs over a 10-year period would range from: dress within 30 days while • $2.40 billion for undiscounted net costs; the sponsor’s and/or house- • $2.05 billion at a 3 percent discount rate; and hold member’s support obli- • $1.69 billion at a 7 percent discount rate. gation is in effect.. Amending 8 CFR 213a.4. Ac- Outlines process by which Qualitative: tions for reimbursement, pub- USCIS provides a certified Costs lic notice, and congressional copy of Affidavit of Support • The proposed rule may impose some costs if a joint sponsor must execute an Affidavit in reports. Under Section 213A of the cases where a sponsor has received any means-tested public benefits within 36 months of fil- INA or Contract Between ing the Affidavit and/or has failed to meet the support or reimbursement obligations under an Sponsor and Household existing Affidavit or Contract. There could be a reduction in the number of immigrants granted Member that has been exe- an immigration benefit in cases where the intending immigrant is unable to obtain a sponsor cuted to a party or authorized who can meet the new requirements under this proposed rule. entity. • The proposed rule could result in some sponsors and joint sponsors who may intend to spon- sor a family member in the future to forego enrollment or disenroll from a means-tested public benefits program to avoid triggering the proposed additional requirements. • The proposed rule may result in an increased number of individuals with support obligations who are held accountable for the reimbursement of the cost of means-tested public benefits. Further, sponsors or household members would incur the cost of reimbursing the means-test- ed public benefits-granting agency and would likely incur the costs of legal representation if means-tested public benefits granting agencies choose to pursue legal action to recover the means-tested public benefits a sponsored individual received. Qualitative: Benefits • Update evidentiary requirements to provide USCIS with more effective ways to determine whether the sponsor has the means to maintain an annual income at or above the outlined in- come threshold. These updated requirements would better enable USCIS to determine wheth- er the sponsor is able to provide financial support to the intending immigrant and meet all sup- port obligations during the period the Affidavit is in effect; • Update and improve how means-tested public benefit-granting agencies obtain immigration status information from USCIS about individuals who are seeking means-tested public bene- fits and how means-tested public benefit-granting agencies provide information to USCIS. This proposed provision would eliminate the requirement of obtaining a duly issued subpoena be- fore USCIS is authorized to provide a certified copy of Form I–864 or Form I–864EZ to a re- questing party for use in any action to enforce the support obligation and instead allow a re- questing party to submit a formal request for an Affidavit or a Contract directly to USCIS. This will strengthen the enforcement mechanism for Affidavits and Contracts, which would allow means-tested public benefits-granting agencies to recover payment for any means-tested pub- lic benefits that a sponsored alien receives during the period in which an Affidavit or Contract is enforceable; and • Revise the process for informing USCIS about judgments obtained against sponsors (for fail- ing to meet prior support obligations as a sponsor or household member) and indigency deter- minations to give USCIS flexibility to determine a more efficient mechanism for information re- porting, whereby USCIS would be permitted to provide a different mechanism for submitting copies of judgments and indigency determinations to ensure accuracy and efficiency. Source: USCIS analysis.

DHS does not have sufficient data to INA, 8 U.S.C. 1183a, and strengthening Responsibility Act (IIRIRA).8 Section quantify the expected benefits of the the enforcement mechanism for the 531(a) of IIRIRA amended section proposed rule. However, the Affidavit and Contract so that sponsors 212(a)(4) of the INA, 8 U.S.C. 1182(a)(4), Administration has identified and household members are held to require an executed Affidavit for enforcement of sponsorship obligations accountable for those support certain aliens to avoid a finding of as a priority and DHS has made a policy obligations. inadmissibility under this section; this determination that the proposed III. Background & Purpose includes most aliens seeking an changes in this rule will assist with immigrant visa, admission as an better ensuring sponsors and household A. Statutory Authority members who execute a Contract are 8 See Illegal Immigration Reform and Immigrant capable of meeting their support In 1996, Congress enacted the Illegal Responsibility Act of 1996, Public Law 104–208, obligations under section 213A of the Immigration Reform and Immigrant 110 Stat. 3009 (1996).

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immigrant, or adjustment of status as: this country expect them to be able to the procedures for submitting (a) An immediate relative, (b) a family- make it in this country on their own and Affidavits, defining a sponsor’s ongoing based preference immigrant, or (c) an with the help of their sponsors.’’ 14 The obligations and specifying the employment-based preference same Senate Committee on the Judiciary procedures Federal, State, or local immigrant, if a relative of the alien is further stated that ‘‘[i]t was only on the agencies, or private entities, must follow the petitioning employer or has a basis of the assurance of the immigrant to seek reimbursement from the sponsor significant ownership interest in the and the sponsor that the immigrant for provision of means-tested public entity that is the petitioning employer.9 would not at any time become a public benefits. In conjunction with the interim This formalized Affidavit requirement charge that the immigrant was allowed rule, the Service also created three new that had been in common use at in this country’’ (emphasis in public use forms: Form I–864; Form I– overseas consular offices since President original).15 864A; and Form I–865. The interim rule Herbert Hoover directed widespread Congress also enacted the Personal went into effect on December 19, 1997. adoption in 1929.10 Section 551 of Responsibility and Work Opportunity The interim rule included Department IIRIRA added section 213A to the INA, Reconciliation Act of 1996 (PRWORA), of State consular officers within the 8 U.S.C. 1183a, and specified the which generally imposed new meaning of ‘‘immigration officer’’ only requirements for a sponsor’s Affidavit.11 restrictions on an alien’s eligibility for for the purpose of 8 CFR part 213a. See The new section 213A of the INA, 8 many Federal, state, and local 62 FR 54346, 54352 (Oct. 20, 1997). U.S.C. 1183a, also specified who is benefits.16 The law prohibits recent In a joint rulemaking with the eligible to be a sponsor, which aliens immigrants, with some exceptions, from Department of Justice (DOJ) in 2006, require an Affidavit, the scope of a receiving Federal means-tested public DHS adopted the 1997 interim rule as a sponsor’s obligations, and how an benefits such as Temporary Assistance final rule clarifying who needed an Affidavit may be enforced.12 These for Needy Families (TANF), the Affidavit, how sponsors qualify, what provisions were intended to ‘‘encourage Supplemental Nutrition Assistance information and documentation immigrants to be self-reliant in Program (SNAP) (formerly known as sponsors must present, and when the accordance with national immigration Food Stamps), and the Children’s income of other people could be used to policy.’’ 13 Health Insurance Program (CHIP).17 For support an intending immigrant. The Protecting American taxpayers by purposes of determining eligibility for final rule also made changes that led to requiring sponsors to be responsible for Federal means-tested public benefits the development of Form I–864EZ, for repayment of means-tested public programs, PRWORA also specified that use by a sponsor who relies only on his benefits received by sponsored the income and resources of an or her own employment to meet the immigrants was another purpose of the immigrant would generally be deemed income requirements under section support obligation. For example, while to include the income and resources of 213A of the Act, 8 U.S.C. 1183a.22 considering enacting an Affidavit any person who executed an Affidavit On , 2019, President Trump requirement and imposing obligations (and that person’s spouse, if any).18 The issued the Memorandum on Enforcing on a sponsor, the Senate Committee on deeming requirements reflect Congress’ the Legal Responsibilities of Sponsors of the Judiciary stated ‘‘[i]t should be made determination that aliens ‘‘not depend Aliens (Presidential Memo).23 The clear to immigrants that the taxpayers of on public resources to meet their needs, Presidential Memo states that a ‘‘key but rather rely on their own capabilities priority of [the] Administration is 9 See INA section 212(a)(4)(C)–(D), 8 U.S.C. and the resources of their families, their restoring the rule of law by ensuring 1182(a)(4)(C)–(D). See INA section 213A, 8 U.S.C. sponsors, and private organizations’’.19 1183a. that existing immigration laws are 24 10 See INA section 213A, 8 U.S.C. 1183a. See B. Prior Rulemaking enforced.’’ The Presidential Memo Section 551 of IIRIRA, Public Law 104–208, 110 also emphasized that sponsors who In 1997, the former Immigration and Stat. 3009 (1996). The Department of State had pledge to financially support sponsored required low-income applicants to submit affidavits Naturalization Service (INS or the aliens will be expected to fulfill their since the 1930s (a process that was formalized with Service) 20 published an interim rule commitment under the law.25 The Immigration and Naturalization Service (INS) Form implementing the affidavit of support I–134), but the courts had determined that the Presidential Memo directed Federal requirement created by IIRIRA and affidavits were legally unenforceable as an agencies to undertake more effective obligation to reimburse the government for public PRWORA.21 The interim rule oversight to ensure full compliance with aid rendered. See San Diego County v. Viloria (276 promulgated 8 CFR part 213a, defining Cal. App. 2d 350, 80 Cal. Rptr. 869 (Cal. App. Federal laws on income deeming and 1969)). The IIRIRA addressed this issue by requiring reimbursement.26 Agencies have issued 14 See S. Report 104–249, at 7 (Apr. 10, 1996). that an affidavit of support be legally enforceable. revised guidance on income deeming See Section 551 of IIRIRA, Pub. L. 104–208, 110 15 See S. Report 104–249, at 6 (Apr. 10, 1996). Stat. 3009 (1996). See Roger Daniels, Guarding the 16 See the Personal Responsibility and Work and reimbursement for Medicaid, CHIP, Golden Door: American Immigration Policy and Opportunity Reconciliation Act of 1996 (PRWORA), TANF, and SNAP subsequent to the Immigrants since 1882, at p. 61 (New York: Hill and Public Law 104–193, 110 Stat. 2105 (1996). Presidential Memo.27 Wang, 2004). 17 See 8 U.S.C. 1611 and 1613. See Sections 401 11 See INA section 213A, 8 U.S.C. 1183a. See and 403 of PRWORA, Public Law 104–193, 110 22 See Affidavits of Support on Behalf of Section 551 of IIRIRA, Public Law 104–208, 110 Stat. 2105 (1996). Immigrants, 71 FR 35731 (, 2006). Stat. 3009 (1996). 18 See 8 U.S.C. 1631. See Section 421 of 23 See https://www.whitehouse.gov/presidential- 12 See INA section 213A, 8 U.S.C. 1183a. See PRWORA, Public Law 104–193, 110 Stat. 2105 actions/memorandum-enforcing-legal- Section 551 of the IIRIRA, Public Law 104–208, 110 (1996). responsibilities-sponsors-aliens/ (last visited May Stat. 3009 (1996). 19 See 8 U.S.C. 1601(2)(A). 24, 2019). 13 20 On , 2003, the Service ceased to exist, See H.R. Rep. 104–828, at 241 (Sept. 24, 1996) 24 (Conf. Rep.). Section 551(d) of IIRIRA mentions the and its functions were transferred from the See Section 1 of the Presidential Memo. 25 promulgation by the Attorney General [now Department of Justice to the Department of See Section 1 of the Presidential Memo. Secretary of Homeland Security], in consulation Homeland Security. See Homeland Security Act of 26 See Sections 1 and 2 of the Presidential Memo. with the heads of other appropriate agencies, of a 2002, Public Law 107–296 (Nov. 25, 2002). DHS is 27 See Sponsoring Deeming and Repayment for standard form for an affidavit of support consistent the issuing authority for this proposed rule since Certain Immigrants, available at https:// with INA 213A. See 8 U.S.C. 1183a Note. Section the Homeland Security Act transferred immigration www.medicaid.gov/federal-policy-guidance/ 531(b) of IIRIRA also mentions the ‘‘standard form’’ services functions to U.S. Citizenship and downloads/sho19004.pdf (last visited , 2020). for an Affidavit promulgated by the Attorney Immigration Services. See Reimbursement obligations of sponsors of General [now Secretary of Homeland Security]. See 21 See Affidavits of Support on Behalf of noncitizens and procedures for recovering TANF 8 U.S.C. 1182 Note. Immigrants, 62 FR 54346 (Oct. 20, 1997). funds, available at https://www.acf.hhs.gov/ofa/

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On August 14, 2019, DHS published circumstances, a joint sponsor or a National Visa Center (NVC). The a final rule, Inadmissibility on Public substitute sponsor is permitted.32 Department charges a fee to ensure that Charge Grounds.28 The final rule By executing an Affidavit, a sponsor the Affidavit is properly completed explains how DHS will consider is creating a contract between the before it is forwarded to a consular post Affidavits in the totality of the sponsor and the U.S. Government. The for adjudication of an immigrant visa.37 circumstances when making public intending immigrant becoming a lawful An applicant is charged only one fee in charge inadmissibility determinations.29 permanent resident is the consideration certain circumstances. For example, for the contract.33 Under the contract, Affidavits from an individual C. Current Processing of an Affidavit of the sponsor agrees that he or she will concurrently sponsoring an immediate Support Under Section 213A of the INA provide support to the sponsored relative spouse and child would be the immigrant at an annual income not less An Affidavit is required for most same in substance, and essentially than 125 percent of the Federal poverty duplicative and therefore only one fee is family-sponsored immigrants and some 34 line during the period the obligation charged. When the Affidavit is employment-based immigrants.30 A is in effect, to be jointly and severally petitioning sponsor must execute Form submitted directly to a consular post liable for any reimbursement obligation overseas, no fee is charged. I–864 or Form I–864EZ at one of the incurred as a result of the sponsored following points in the immigration immigrant receiving means-tested The Form I–864 and Form I–864EZ process depending on the type of public benefits during the period of are designed to determine whether the immigration benefit the applicant is enforcement,35 and to submit to the individual executing Form I–864 or seeking: As part of the immigrant visa jurisdiction of any Federal or State court Form I–864EZ meets the eligibility application with DOS; when the for the purpose of enforcing the support criteria for sponsorship.38 In general, a principal immigrant submits an obligation. The sponsor also agrees that sponsor is defined as an individual who application for adjustment of status to the U.S. Government can consider the executes a Form I–864 or Form I–864EZ permanent resident status with USCIS; sponsor’s income and assets as available with respect to a sponsored alien and or when directed by an immigration for the support of the sponsored who: Is a citizen or national of the judge in the United States.31 As immigrant when the immigrant applies United States or a lawful permanent 36 described further below, in certain for means-tested public benefits. resident; is at least 18 years of age; is domiciled in any of the several States of a. Submitting an Affidavit the United States, the District of resource/tanf-acf-pi-2019-01 (last visited June 2, Sponsors submit either a Form I–864 2020). See State Enforcement of Legal Columbia, or any territory or possession Responsibilities of Sponsors of Non-Citizens, or the shorter Form I–864EZ. Sponsors of the United States; is petitioning for available at https://www.fns.usda.gov/snap/ may use the Form I–864EZ if: The the admission of the alien under section resource/state-enforcement-legal-responsibilities- sponsor is the petitioner who filed the 204 of the INA, 8 U.S.C. 1154; and sponsors-non-citizens (last visited June 2, 2020). petition (Form I–130, Petition for an 28 See Inadmissibility on Public Charge Grounds, demonstrates the means to maintain an 84 FR 41292 (Aug. 14, 2019). Due to delays Alien Relative, Form I–129F, Petition annual income equal to at least 125 resulting from ongoing litigation in the U.S. District for Alien Fiance´(e), or Form I–600, percent of the Federal poverty line.39 Courts for the Southern District of New York, Petition to Classify Orphan as an Northern District of California, Eastern District of Immediate Relative) for the relative A petitioner who meets all the Washington, Northern District of Illinois, and being sponsored; the relative being requirements of section 213A(f)(1) of the District of Maryland, DHS implemented the final INA, 8 U.S.C. 1183a(f)(1), except for the rule nationwide on February 24, 2020. On July 29, sponsored is the only person, other than 2020, the U.S. District Court for the Southern the petitioner, listed on the petition; and requirement to demonstrate the means District of New York enjoined DHS nationwide the income the sponsor is using to to maintain an annual income equal to from enforcing, applying, implementing, or treating qualify for the Affidavit is based entirely at least 125 percent of the Federal as effective the final rule for any period during on the sponsor’s salary or pension as poverty line sponsor may still be a which there is a declared national health emergency 40 in response to the COVID–19 outbreak. New York shown on one or more Internal Revenue sponsor. The term sponsor also v .DHS. No. 19–777 (S.D.N.Y. July 29, 2020). On Service Form W–2. Applicants seeking includes an individual who is on active August 12, 2020, the U.S. Court of Appeals for the adjustment of status before USCIS file duty (other than active duty for training) Second Circuit issued a partial administrative stay in the Armed Forces of the United of the nationwide injunction limiting its scope to Form I–864 or Form I–864EZ with Form the Second Circuit, i.e., New York, Connecticut, I–485, Application to Register States, is petitioning for his or her and Vermont. New York v. DHS, No. 20–2537 (2d Permanent Residence or Adjust Status. spouse or child, and demonstrates (as Cir. Ayg. 12, 2020). USCIS does not currently charge a provided in section 213A(f)(6) of the 29 Under the final rule, ‘‘DHS will consider the Act, 8 U.S.C. 1183a(f)(6)) the means to likelihood that the sponsor would actually provide separate fee to file Form I–864 or Form the statutorily-required amount of financial support I–864EZ. For most immigrant visa maintain an annual income equal to at to the alien, and any other related considerations.’’ applications, Affidavits and Contracts least 100 percent of the Federal poverty See 8 CFR 212.22(b)(7). are submitted to the Department of State line.41 30 See INA section 212(a)(4)(C) and (D), 8 U.S.C. 1182(a)(4)(C) and (D). 32 See INA section 213A(f)(5), 8 U.S.C. 37 The fee authority is contained in 8 U.S.C. 1183a 31 Three different agencies review an Affidavit for 1183a(f)(5). Note, added by Public Law 106–113, Div. B, sufficiency, each in a different context. USCIS 33 1000(a)(7) [Div. A, Title II, sec. 232], Nov. 29, 1999, reviews an Affidavit and Contract while See 8 CFR 213a.2(e)(1). 34 113 Stat. 1536, 1501A–425, as amended Public Law adjudicating certain applications for adjustment of A sponsor who is on active duty (other than 107–228, Div. A, Title II, sec. 211(b), Sept. 30, 2002, status. DOS consular officers also review Affidavits active duty for training) in the Armed Forces of the 116 Stat. 1365. and Contracts as part of the immigrant visa United States, and is petitioning for the admission 38 application process, and when an Affidavit is of the alien under INA section 204, 8 U.S.C. 1154, See INA section 213A(f)(3), 8 U.S.C. required, to assess potential ineligibility on public as the spouse or child of the sponsor only needs to 1183a(f)(3). charge grounds. See 22 CFR 40.41. Immigration demonstrate the means to maintain an annual 39 See INA section 213A(f)(1), 8 U.S.C. Courts, which are part of the U.S. Department of income equal to at least 100 percent of the Federal 1183a(f)(1). Justice (DOJ), Executive Office for Immigration poverty line. See INA section 213A(f)(3), 8 U.S.C. 40 See INA section 213A(f)(2) and (3), 8 U.S.C. Review (EOIR), may review Affidavits and 1183a(f)(3). 1183a(f)(2) and (3). Contracts in the context of an alien in removal 35 See 8 CFR 213a.2(c)(2)(i)(C)(2). 41 See INA section 213A(f)(3), 8 U.S.C. proceedings who is seeking adjustment of status as 36 See Sections 421–422 of PRWORA, Public Law 1183a(f)(3). See also 8 CFR 213a.2(c)(2)(iii)(C) and a form of relief from removal. 104–193, 110 Stat. 2105 (1996). See 8 U.S.C. 1631. (D).

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Certain relatives 42 of employment- supporting documents like schedules, Hague Convention adoptee who is based immigrants can also be a sponsor for the most recent tax year, or provide considered to be coming to the United if the relative filed a petition for the evidence demonstrating why they were States for adoption, the total value of the sponsored alien as an employment- not required to file a Federal tax return assets only needs to equal the difference based immigrant under section 203(b) of for that year.49 Sponsors may also between the sponsor’s household the Act, 8 U.S.C. 1153(b), or if the submit additional evidence income and the current Federal poverty relative has a significant ownership demonstrating their income, including line for sponsor’s household size interest in the entity that filed such a letters evidencing their employment and (including all immigrants sponsored on petition.43 The term sponsor includes income, paycheck stubs, and financial any Affidavit in force or pending).58 this relative, if the relative also meets statements.50 Sponsors relying on significant assets the requirements of section INA Currently, the sponsor’s household need to provide evidence establishing 213A(f)(1)(A), (B), (C), 8 U.S.C. income for the year in which the location, ownership, and value of each 1183a(f)(1)(A), (B), and (C), as described intending immigrant filed the listed asset.59 above, and demonstrates (as provided in application for adjustment of status is An immigration officer or INA section 213A(f)(6), 8 U.S.C. given the most evidentiary weight.51 If immigration judge may pursue 1183a(f)(6)) the means to maintain an the sponsor’s projected household verification of any information provided annual income equal to at least 125 income for the year in which the for the Affidavit if the sponsor and/or percent of the Federal poverty line.44 intending immigrant filed the household member provides A petitioner who meets all the application for adjustment of status authorization. If the sponsor and/or requirements of section 213A(f)(1) of the meets the applicable income threshold, household member fails to provide Act, 8 U.S.C. 1183a(f)(1), except for the the immigration officer or immigration verification authorization, the Affidavit requirement to demonstrate the means judge may determine the Affidavit is will be considered withdrawn.60 to maintain an annual income equal to insufficient on the basis of household A sponsor may withdraw an Affidavit at least 125 percent of the Federal income only if, based on specific facts, at any time until a decision is issued on poverty line, but accepts joint and it is reasonable to infer that the sponsor the applicant’s application for an several liability with a joint sponsor (as will not be able to maintain the immigrant visa or adjustment of defined under section 213A(f)(5)(A) of household income at a level sufficient to status.61 The withdrawal must be in the INA, 8 U.S.C. 1183a(f)(5)(A)), is also meet the support obligations.52 When writing, must include the sponsor’s a sponsor.45 Similarly, a relative of an reviewing an Affidavit for sufficiency, signature, and must be received before employment-based immigrant that the immigration officer or immigration the final decision is issued. A meets the requirements of section judge may consider facts such as a withdrawal may not be retracted. 213A(f)(1)(A), (B), (C), and (f)(4)(A), yet material change in a sponsor’s An Affidavit is considered sufficient does not meet the requirement to employment or income history, the if the immigration officer or demonstrate the means to maintain an number of aliens included in other immigration judge determines a sponsor annual income equal to at least 125 pending Affidavits executed by the has demonstrated he or she meets all the percent of the Federal poverty line, but sponsor, and other relevant facts.53 eligibility requirements in section accepts joint and several liability with a Sponsors may also demonstrate the 213A(f)(1) or (5) of the Act.62 The joint sponsor (as defined under section means to maintain the applicable support obligations agreed to when 213A(f)(5)(A) of the INA, 8 U.S.C. annual income through their significant Form I–864, Form I–864EZ, and Form I– 1183a(f)(5)(A)), is also a sponsor.46 Joint assets or the significant assets of the 864A are executed generally commence sponsors are discussed in greater detail intending immigrant.54 Significant when the intending immigrant is in subsection 1 below. assets may include savings accounts, granted lawful permanent resident stocks, bonds, certificates of deposit, status.63 The support obligations b. Demonstration of Means To Maintain and real estate.55 In order to qualify as terminate by operation of law when: Income significant assets, the total value of all The sponsored immigrant becomes a Sponsors may demonstrate that they the assets must equal at least five times U.S. citizen; 64 the sponsored immigrant have the means to maintain an annual the difference between sponsor’s total has worked or can be credited with 40 income equal to at least 125 percent of household income and the current qualifying quarters of work in the the Federal poverty line, or 100 percent Federal poverty line for sponsor’s United States under title II of the Social as applicable,47 through a combination household size (including all Security Act 65 (provided that the of income and/or significant assets.48 immigrants sponsored on any Affidavit sponsored immigrant is not credited All sponsors must submit a copy of their in force or pending).56 However, if the Federal income tax return, including sponsor is a U.S. citizen and he or she 58 See 8 CFR 213a.2(c)(2)(iii)(B)(2). is sponsoring a spouse or child (age 18 59 See 8 CFR 213a.2(c)(2)(iii)(B). 42 See 8 CFR 213a.1 (‘‘Relative means a husband, years of age or older), the total value of 60 See 8 CFR 213a.2(c)(2)(v). 61 wife, father, mother, child, adult son, adult the assets must only be equal to at least See 8 CFR 213a.2(f). daughter, brother, or sister.’’). 62 An immigrant can be determined to be 57 43 See INA section 213A(f)(4)(A), 8 U.S.C three times the difference. If the inadmissible as a public charge under INA section 1183a(f)(4)(A). This relative would not meet (nor intending immigrant is an orphan or 212(a)(4), 8 U.S.C. 1182(a)(4), even if the immigrant does he or she have to meet) the requirements of has a sufficient affidavit of support. See 8 CFR INA section 213A(f)(1)(D), 8 U.S.C. 1183a(f)(1)(D). 49 See 8 CFR 213a.2(c)(2)(i)(A)–(B). 213a.2(c)(2)(iv). 44 See INA section 213A(f)(4)(A) and (B)(i), 8 63 50 See 8 CFR 213a.2(c)(2)(i)(A). See 8 CFR 213a.2(e)(1). In cases where it is U.S.C. 1183a(f)(4)(A) and (B)(i). determined that either a Form I–864 executed by a 51 See 8 CFR 213a.2(c)(2)(ii)(C). 45 See INA section 213A(f)(2), 8 U.S.C. joint sponsor or a Form I–864A executed by a 52 1183a(f)(2). See INA section 213A(f)(5)(A), 8 U.S.C. See 8 CFR 213a.2(c)(2)(ii)(C). household member is not needed because the 1183a(f)(5)(A). 53 See 8 CFR 213a.2(c)(2)(ii)(C). petitioning sponsor or substitute sponsor 46 See INA section 213A(f)(4)(A) and (B)(ii), 8 54 See INA section 213A(f)(6)(A)(ii), 8 U.S.C. demonstrated the means to maintain income at the U.S.C. 1183a(f)(4)(A) and (B)(ii). 1183A(f)(6)(A)(ii). See also 8 CFR applicable threshold, the support obligation 47 See INA section 213A(f)(3), 8 U.S.C. 213a.2(c)(2)(iii)(A)(1), 213a.2(c)(2)(iii)(B). associated with such Form I–864 or Form I–864A 1183a(f)(3). 55 See 8 CFR 213a.2(c)(2)(iii)(B). would not commence. 48 See INA section 213A(f)(6)(A)(i)–(ii), 8 U.S.C. 56 See 8 CFR 213a.2(c)(2)(iii)(B)(3). 64 See 8 CFR 213a.2(e)(2)(i)(A). 1183a(f)(6)(A)(i)–(ii). 57 See 8 CFR 213a.2(c)(2)(iii)(B)(1). 65 See 42 U.S.C. 401, et seq.

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with any quarter beginning after income equal to at least 125 percent of petitioning sponsor and/or the December 31, 1996, during which the the Federal poverty line.77 sponsored immigrant.85 sponsored immigrant receives or As stated previously, a petitioner who An intending immigrant may not received any Federal means-tested meets all the requirements of section submit a Form I–864 executed by more 66 public benefit); the sponsored 213A(f)(1) of the INA, 8 U.S.C. than one joint sponsor.86 However, if 67 immigrant dies; the sponsored 1183a(f)(1), except for the requirement the joint sponsor’s household income is immigrant abandons or loses lawful to demonstrate the means to maintain insufficient to meet the income permanent resident status and departs an annual income equal to at least 125 requirement with respect to the 68 the United States; or, the sponsored percent of the Federal poverty line, but principal intending immigrant, plus any immigrant obtains lawful permanent accepts joint and several liability with a spouse and all the children who seek to resident status on a new basis in joint sponsor (as defined under section accompany the principal intending removal proceedings based on a new 213A(f)(5)(A) of the INA, 8 U.S.C. immigrant,87 the joint sponsor may Affidavit (if such an Affidavit is 1183a(f)(5)(A)), is also a sponsor.78 specify on the Affidavit that it is required).69 The support obligation also A joint sponsor is an individual who submitted only on behalf of the terminates if the sponsor dies.70 Divorce is not the petitioning sponsor, but who principal intending immigrant and does not end the support obligation.71 accepts joint and several liability with those accompanying family members If an Affidavit is deemed insufficient the petitioning sponsor and who specifically listed on the Affidavit.88 because the sponsor is determined to be demonstrates the means to maintain an Any remaining accompanying family unable to maintain household income at annual income equal to at least 125 members not included in the first joint a level sufficient to meet the sponsor’s percent of the Federal poverty line.79 sponsor’s affidavit would be support obligations, the intending If a petitioner is qualifying as a inadmissible under section 212(a)(4) of immigrant will be inadmissible on the sponsor under section 213A(f)(2) of the the INA, 8 U.S.C. 1182(a)(4), unless a public charge ground under section Act, 8 U.S.C. 1183a(f)(2), by accepting second joint sponsor submits a Form I– 212(a)(4) of the INA, 8 U.S.C. 89 joint and several liability with a joint 864 on their behalf. A family group 1182(a)(4).72 The intending immigrant’s sponsor, both the petitioner and the consisting of the principal intending application for adjustment of status or joint sponsor must execute Form I– immigrant and the accompanying an immigrant visa will be denied. 864.80 A joint sponsor is permitted spouse and children may not have more 90 1. Joint Sponsors and Substitute where the petitioning sponsor cannot than two joint sponsors. Sponsors demonstrate the means to maintain an b. Substitute Sponsors annual income equal to at least 125 a. Joint Sponsors percent of the Federal poverty line, or A petitioning sponsor’s death ends 81 Section 213A(f)(1) of the INA, 8 100 percent as applicable. A joint the sponsor’s obligation to meet the U.S.C. 1183a(f)(1), defines a sponsor as sponsor cannot serve as a replacement terms of the Affidavit. However, a an ‘‘individual who executes an for the petitioning sponsor; both the petitioning sponsor’s death does not end affidavit of support with respect to the petitioner and the joint sponsor must the requirement to submit a sufficient 82 sponsored alien,’’ and who, is a citizen accept joint and several liability. Affidavit, if such requirement applies. or national of the United States or a Therefore, the joint sponsor must file An applicant cannot meet the Affidavit lawful permanent resident; 73 is at least Form I–864 in addition to the requirement by relying on a Form I–864 18 years of age; 74 is domiciled in any petitioning sponsor, and only if the or Form I–864EZ signed by a deceased of the several States of the United petitioning sponsor does not meet the petitioning sponsor. A substitute requirement of demonstrating the means States, the District of Columbia, or any sponsor may submit an Affidavit if to maintain an annual income as stated territory or possession of the United USCIS determines for humanitarian in the statute and regulations.83 The States; 75 is petitioning for the admission reasons that revocation of the approval joint sponsor must provide evidence of of the alien under section 204 of the of the immigrant petition would be income or assets that independently Act, 8 U.S.C. 1154; 76 and demonstrates inappropriate, or if the petition is being meets the income threshold to support the means to maintain an annual adjudicated pursuant to section 204(l) of the sponsored immigrant(s).84 The joint the Act, 8 U.S.C. 1154(l).91 Except for sponsor cannot meet the income 66 the requirement of petitioning for the See 8 CFR 213a.2(e)(2)(i)(B). threshold by combining his or her 67 See 8 CFR 213a.2(e)(2)(i)(E). admission of the alien under section 204 income with the income of the 68 See 8 CFR 213a.2(e)(2)(i)(C) (if the sponsored of the Act, 8 U.S.C. 1154, a substitute immigrant has not abandoned permanent resident sponsor must meet the same status, executing the form designated by USCIS for 77 See INA section 213A(f)(1)(E), 8 U.S.C. recording such action, this provision will apply 1183a(f)(1)(E). sponsorship requirements as the 92 only if the sponsored immigrant is found in a 78 See INA section 213A(f)(2), 8 U.S.C. petitioning sponsor. A substitute removal proceeding to have abandoned that status 1183a(f)(2). See INA section 213A(f)(5)(A), 8 U.S.C. sponsor must be related to the intending while abroad). 1183a(f)(5)(A). immigrant applicant in one of the ways 69 See 8 CFR 213a.2(e)(2)(i)(D). 79 See 8 CFR 213a.1. 70 See 8 CFR 213a.2(e)(2)(ii). 80 See INA section 213A(f)(2), 8 U.S.C. 85 71 See Affidavits of Support on Behalf of 1183a(f)(2). See INA section 213A(f)(5)(A), 8 U.S.C. See 8 CFR 213a.1. Immigrants, 71 FR 35731, 35740 (June 21, 2006). 1183a(f)(5)(A). 86 See 8 CFR 213.2(c)(2)(iii)(C). 72 See INA section 213A(a)(1), 8 U.S.C. 81 See INA section 213A(f)(3), 8 U.S.C. 87 See INA section 203(d), 8 U.S.C. 1153(d). 1183a(a)(1). 1183a(f)(3). 88 See 8 CFR 213a.2(c)(2)(iii)(C). 73 See INA section 213A(f)(1)(A), 8 U.S.C. 82 See INA section 213A(f)(2), 8 U.S.C. 89 See 8 CFR 213a.2(c)(2)(iii)(C). 1183a(f)(1)(A). 1183a(f)(2). See INA section 213A(f)(5)(A), 8 U.S.C. 90 See 8 CFR 213a.2(c)(2)(iii)(C). 74 See INA section 213A(f)(1)(B), 8 U.S.C. 1183a(f)(5)(A). 91 See INA section 213A(f)(5)(B), 8 U.S.C. 1183a(f)(1)(B). 83 See INA section 213A(f)(2), (3), (5)(A), and (6), 1183a(f)(5)(B). See INA section 204(l), 8 U.S.C. 75 See INA section 213A(f)(1)(C), 8 U.S.C. 8 U.S.C. 1183a(f)(2), (3), (5)(A), and (6). See also 8 1154(l). See also 8 CFR 205.1(a)(3)(i)(C)(2). 1183a(f)(1)(C). CFR 213a.2(b)(1). 92 See INA section 213A(f)(1) and (5)(B), 8 U.S.C. 76 See INA section 213A(f)(1)(D), 8 U.S.C. 84 See INA section 213A(f)(5)(A), 8 U.S.C. 1183a(f)(1) and (5)(B). See also 8 CFR 1183a(f)(1)(D). 1183a(f)(5)(A). See also 8 CFR 213a.2(c)(2)(iii)(C). 213a.2(c)(2)(iii)(D).

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specified in section 213A(f)(5)(B) of the employment from a lawful source will Affidavit (if such an Affidavit is INA, 8 U.S.C. 1183a(f)(5)(B).93 continue even after acquiring lawful required).109 A Form I–864 signed by an eligible permanent resident (LPR) status; or A household member’s obligation substitute sponsor is an acceptable • An intending immigrant who is the created by executing a Form I–864A also replacement of the deceased petitioning sponsor’s spouse and can show his or terminates when the household member sponsor’s Form I–864 if submitted and her income comes from authorized dies.110 The death of one person who received before the adjudication of the employment in the United States 100 and had a support obligation under an adjustment application. If the applicant is the result of employment in a lawful Affidavit or a Contract does not does not have a substitute sponsor file enterprise or some other lawful source, terminate the support obligation of any a sufficient Form I–864 on his or her and that employment will continue other sponsor, substitute sponsor, joint behalf, then the applicant is from a lawful source, even after sponsor, or household member with inadmissible under section 212(a)(4) of acquiring LPR status if a spouse or child respect to the same sponsored 94 the INA, 8 U.S.C. 1182(a)(4). is immigrating with the intending immigrant.111 Divorce does not end the 112 2. Household Members immigrant. support obligation. In certain circumstances, a sponsor’s A household member submits Form I– D. Reimbursement Process household members may agree to use 864A with evidence of his or her income and/or assets.101 In signing Sponsors are responsible for their income to financially support an reimbursing the cost of means-tested intending immigrant.95 Although not Form I–864A, the household member agrees to provide the petitioning public benefits received by sponsored required by section 213A of the Act, 8 aliens. The Act states ‘‘[u]pon U.S.C. 1183a, in order to meet the ‘‘sponsor as much financial assistance as may be necessary for the petitioning notification that a sponsored alien has income threshold, a sponsor may rely received any means-tested public on the income of individuals included sponsor to maintain the intending immigrant at the annual income level benefit, the appropriate in the sponsor’s household size (as nongovernmental entity which provided determined for purposes of section required by section 213A(a)(1)(A) of the 102 such benefit or the appropriate entity of 213A of the Act, 8 U.S.C. 1183a).96 The Act.’’ Household members are jointly and severally liable for any the Federal Government, a State, or any individual must be at least 18 years old political subdivision of a State shall and the individual must execute Form reimbursement obligation the sponsor 103 request reimbursement by the sponsor 97 may incur. I–864A. Currently, the following in an amount which is equal to the individuals may be household members As stated previously, the household unreimbursed costs of such for purposes of executing Form I– member’s support obligations terminate 113 98 benefits.’’ Agencies can sue sponsors 864A: by operation of law when: The pursuant to the executed Affidavit.114 • The sponsor’s spouse, parent, child, sponsored immigrant becomes a U.S. sibling, or adult child who has the same citizen; 104 the sponsored immigrant has If an agency requests reimbursement principal residence as the sponsor; worked or can be credited with 40 from a sponsor, the agency must arrange • Any person who the sponsor qualifying quarters of work in the for personal service of a written request lawfully claims as a dependent on the United States under title II of the Social for reimbursement upon the sponsor 105 (and any household member who sponsor’s most recent Federal tax Security Act (provided that the 115 return; sponsored immigrant is not credited executed Form I–864A). The request • An intending immigrant who has with any quarter beginning after for reimbursement must specify the date the same principal residence as the December 31, 1996, during which the the support obligation commenced, the sponsor if there is a spouse or child sponsored immigrant receives or sponsored immigrant’s name, alien immigrating with the intending received any Federal means-tested registration number, address, and date immigrant, and the intending immigrant public benefit); 106 the sponsored of birth, as well as the types of means- can establish his or her income comes immigrant dies; 107 the sponsored tested public benefit(s) that the from authorized employment in the immigrant abandons or loses lawful sponsored immigrant received, the dates United States 99 and is the result of permanent resident status and departs the sponsored immigrant received the 108 benefits, and the total amount of the employment in a lawful enterprise or the United States; or, the sponsored 116 some other lawful source, and that immigrant obtains lawful permanent benefits received. Agencies do not resident status on a new basis in need to make a separate request for each 93 A substitute sponsor can be the spouse, parent, removal proceedings based on a new type of benefit or for each separate mother-in-law, father-in-law, sibling, child (if at payment; agencies may aggregate in a least 18 years of age), son, daughter, son-in-law, single request all benefit payments 100 See 8 CFR 274a.12. daughter-in-law, sister-in-law, brother-in-law, made as of the date of the request.117 grandparent, or grandchild of a sponsored alien or 101 See 8 CFR 213a.2(c)(2)(i)(C)(4). The regulation a legal guardian of a sponsored alien. provides that a household member must sign an The reimbursement request must 94 See INA section 212(a)(4), 8 U.S.C. 1182(a)(4); ‘‘affidavit of support attachment’’. Form I–864A is include an itemized statement see INA section 213A(a)(1), 8 U.S.C. 1183a(a)(1). the form USCIS designated for the affidavit of supporting the claim for See also 8 CFR 213a.2(c)(2)(iii)(D). support attachment. 95 See 8 CFR 213a.2(c)(2)(i)(C)(1). 102 See 8 CFR 213a.2(c)(2)(i)(C)(2). 109 See 8 CFR 213a.2(e)(2)(i)(D). 96 See 8 CFR 213a.2(c)(2)(i)(C)(1). See Affidavit of 103 See 8 CFR 213a.2(c)(2)(i)(C)(2). 110 See 8 CFR 213a.2(e)(2)(ii). Support on Behalf of Immigrants, 62 FR 54346, 104 See 8 CFR 213a.2(e)(2)(i)(A). 111 54348 (Oct. 20, 1997). See Affidavit of Support on 105 See 42 U.S.C. 401, et seq. See 8 CFR 213a.2(e)(2)(ii). 112 Behalf of Immigrants, 71 FR 35732, 35736 (June 21, 106 See 8 CFR 213a.2(e)(2)(i)(B). See Affidavits of Support on Behalf of Immigrants, 71 FR 35731, 35740 (June 21, 2006). 2006). 107 See 8 CFR 213a.2(e)(2)(i)(E). 97 113 See INA section 213A(b)(1), 8 U.S.C. See 8 CFR 213a.2(c)(2)(i)(C)(1). See Affidavit of 108 See 8 CFR 213a.2(e)(2)(i)(C) (if the sponsored 1183a(b)(1). Support on Behalf of Immigrants, 62 FR 54346, immigrant has not abandoned permanent resident 114 54348 (Oct. 20, 1997). See Affidavit of Support on status, executing the form designated by USCIS for See INA section 213A(b)(2), 8 U.S.C. Behalf of Immigrants, 71 FR 35732, 35736 (June 21, recording such action this provision will apply only 1183a(b)(2). 2006). if the sponsored immigrant is found in a removal 115 See 8 CFR 213a.4(a)(1)(i). 98 See 8 CFR 213a.1 and 213a.2(c)(2)(i)(C)(1). proceeding to have abandoned that status while 116 See 8 CFR 213a.4(a)(1)(ii). 99 See 8 CFR 274a.12. abroad). 117 See 8 CFR 213a.4(a)(1)(iii).

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reimbursement.118 The reimbursement F. Problems Arising From Current immigrant and to be jointly and request must also include a notification Processes severally liable for any reimbursement obligation the sponsor incurs, to the sponsor (and any household 1. Insufficient Information About household members may not have members) that, within 45 days of the Sponsors’ and Household Members’ sufficient resources to individually date of service, the sponsor (and any Financial Ability To Maintain Income of fulfill a judgment related to the support household members) must respond to at Least the Applicable Threshold or obligation. Furthermore, despite the the request for reimbursement either by Meet Support Obligations paying the reimbursement or by language on the Contract, it is not clear arranging to begin payments pursuant to Although immigration officers and that the income of these additional immigration judges make public charge a schedule that is agreeable to the household members is actually available inadmissibility determinations based, in program official.119 to the sponsor for the support of the part, on information contained in the intending immigrant. Limiting A Federal, state, or local government Affidavit and supporting documents,125 household members will better ensure entity or a private entity must wait 45 currently very little financial that any income listed on Form I–864A days from the date it serves the written information is required from sponsors to is actually available to the sponsor for request for reimbursement before filing make such determinations. Similarly, the support of the intending immigrant. a lawsuit against the sponsor or very little financial information is household member.120 An entity may currently required from household 3. Barriers to Repayment Actions and Reporting Problems also bring an action against a sponsor members who submit a Contract. This for failure to abide by repayment provides limited insight into the USCIS receives limited information terms.121 No cause of action may be sponsors’ and household members’ from benefit-granting agencies or brought later than 10 years after the date actual ability to maintain income at the otherparties enforcing the Affidavit or on which the sponsored alien last income threshold or meet their support Contract, despite the information received any means-tested public obligations. Situations such as variable sharing provisions in the statute and benefit to which an Affidavit applied.122 income, a current or past receipt of regulations. Current DHS regulations for means-tested public benefits, or the lack obtaining copies of Affidavits are E. Information Sharing of a U.S. bank account, may indicate a burdensome and inefficient because sponsor or household member cannot they require a subpoena. Laws USCIS considers a sponsor or maintain income of at least the statutory household member to be in compliance governing subpoenas vary by income threshold and/or will not be jurisdiction, but subpoenas often need with the support obligations of section able to fulfill his or her support to be issued by a court clerk or by a 213A(i)(3) of the Act, 8 U.S.C. obligation to the intending immigrant. licensed attorney,126 which requires 1183a(i)(3), unless a party that has The Administration has identified additional time and resources. The obtained a final judgment enforcing the enforcement of sponsorship obligations requirements in the current regulations obligations under sections 213A(a)(1)(A) as a priority and DHS believes a more may have contributed to unintended or 213A(b) of the Act, 8 U.S.C. complete picture of the sponsor’s and difficulties for benefit-granting agencies 1183a(a)(1)(A) or 1183a(b), has provided household member’s financial situation and sponsored immigrants seeking to a copy of the final judgment to would help immigration officers and hold sponsors legally responsible for USCIS.123 immigration judges determine whether their obligations based on Affidavits. PRWORA also requires certain the sponsor can meet the requirements Similarly, current regulations for information sharing between benefit of section 213A of the Act, 8 U.S.C. reporting judgments against sponsors granting agencies and DHS. For 1183a, particularly whether the sponsor and indigency determination sponsored immigrants, section 421(e)(2) has demonstrated the means to maintain information to USCIS are confusing as income as required by section of PRWORA, 8 U.S.C. 1631(e)(2), there are multiple addresses to send 213A(f)(6), 8 U.S.C. 1183a(f)(6), and requires agencies to notify DHS when an notifications to, some of which are no whether the sponsor and household 127 agency has made an indigency longer current. The existing member will actually fulfill his or her regulation will also soon be incorrect as determination, and the notification must support obligation to the intending include the names of the sponsor and the mailing address in the regulation immigrant. USCIS believes that this will 128 124 will no longer be used for USCIS. the sponsored immigrant involved. strengthen the integrity of the This statutory requirement was immigration process. 126 For example, the Federal Rules of Civil implemented at 8 CFR 213a.4(c)(2), Procedure permit court clerks or attorneys providing a mechanism for reporting 2. Too Many Household Members (authorized to practice in the issuing court) to issue this information to USCIS. Contributing Income to the Sponsor’s subpoenas. See Fed. R. Civ. P. Rule 45(a)(3). Household Income 127 8 CFR 213a.4(a)(3) indicates that upon the receipt of a duly issued subpoena, USCIS may Current DHS regulations do not limit provide a certified copy of an Affidavit that has how many household members can been filed on behalf of a specific alien for use as agree to make their income available to evidence in any action to enforce an Affidavit, and the sponsor for the purposes of the may also disclose the last known address and Social Security number of the sponsor, substitute sponsor, 118 See 8 CFR 213a.4(a)(1)(iv). sponsor meeting the income threshold or joint sponsor, but that regulation currently does 119 See 8 CFR 213a.4(a)(1)(iv). by executing Form I–864A. Even though not provide an address or office to which the 120 See INA section 213A(b)(2)(A), 8 U.S.C. such household members agree to subpoena should be sent. 8 CFR 213a.4(c)(3) 1183a(b)(2)(A). See also 8 CFR 213a.4(a)(1)(v). provide the sponsor with enough requires information to be sent to the Office of 121 Program and Regulation Development, which no See INA section 213A(b)(2)(B), 8 U.S.C. support to maintain the sponsored 1183a(b)(2)(B). longer exits. 128 See 8 CFR 213a.4(c)(3). USCIS expects to 122 See INA section 213A(b)(2)(C), 8 U.S.C. 125 See INA section 212(a)(4)(B)(ii), (C), (D), 8 relocate its headquarters from 20 Massachusetts 1183a(b)(2)(C). U.S.C. 1182(a)(4)(B)(ii), (C), (D); INA section Ave. NW, Washington, DC 20529, which is the 123 See 8 CFR 213a.4(c)(1). 213A(a)(1), 8 U.S.C. 1183a(a)(1). See also 22 CFR mailing address currently listed in the regulation 124 See 8 U.S.C. 1631(e). 40.41. for reporting purposes.

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IV. Discussion of Proposed Rule would not meet the definition of a Affidavit is sufficient. DHS notes that sponsor under section 213A(f)(1),(f)(3), the proposed exclusion of receipt of A. Requiring Joint Sponsors in Certain or (f)(5)(B) of the Act, 8 U.S.C. means-tested public benefits received Circumstances 1183a(f)(1), (f)(3), or (f)(5)(B), and before the effective date may provide an DHS is proposing revisions to 8 CFR therefore, would be unable to meet the opportunity for public benefit granting 213a.2(c) to account for additional income requirements under section agencies to communicate the potential evidence relevant to determining 213A of the Act, 8 U.S.C. 1183a. See consequences of receiving means-tested whether the sponsor can demonstrate also proposed 8 CFR public benefits to the extent such the means to maintain income at the 213a.2(c)(2)(ii)(C)(4)(i). Accordingly, the agencies deem appropriate before income threshold and whether a intending immigrant would be found to publication of a final rule. DHS also sponsor can actually meet his or her be inadmissible under section 212(a)(4) recognizes that as a result of a future support obligations. of the Act, 8 U.S.C. 1182(a)(4),135 unless final rule, some benefit-granting 1. Joint Sponsor Required When a joint sponsor executes a separate agencies may decide to modify Petitioning or Substitute Sponsor Affidavit.136 Joint sponsors who have enrollment processes and program Received Means-Tested Public Benefits received a means-tested public benefit documentation for designated benefits on or after the effective date of this rule programs. For instance, agencies may DHS proposes revising 8 CFR and within 36 months of submitting the choose to advise potential beneficiaries 213a.2(c)(2)(ii)(C) to require an Affidavit would likewise be considered of the potential immigration applicant filing an application on or unable to meet the income requirement consequences of receiving certain public after the effective date of this rule to under section 213A(f)(1)(E) of the Act, 8 benefits. DHS requests public comments submit a Form I–864 executed by a joint U.S.C. 1183a(f)(1)(E).137 regarding such potential modifications, sponsor when the petitioning sponsor or DHS recognizes that an individual’s including information regarding how substitute sponsor has received one or financial circumstances can vary over long it would take to make such more means-tested public benefits 129 on time and the receipt of a means-tested modifications, and the resources or after the effective date of this rule and public benefit in the past may be less required to make such modifications. within the 36 month period before the indicative of a current inability to DHS may use this information to Form I–864 is filed. See proposed 8 CFR demonstrate the means to maintain determine the appropriate effective date 213a.2(c)(2)(ii)(C)(4)(i). The 36-month income at the applicable threshold for for a final rule, among other purposes. period aligns with DHS’ proposed an Affidavit However, DHS believes that As an alternative, DHS considered revision to require 3 years of tax returns looking at the 36-month period before permanently barring an individual who from sponsors and household members. had ever received means-tested public See section D.2 below. executing Form I–864 will provide a more complete picture of the petitioning benefits from becoming a sponsor. Under the current regulation, a However, DHS concluded such a policy sponsor’s receipt of means-tested public sponsor’s or substitute sponsor’s ability to maintain income and carry out his or would unreasonably restrict an benefits is excluded from the individual from petitioning for eligible 130 her support obligations. Accordingly, calculation of the sponsor’s income. family members as is permitted by A petitioning sponsor’s or substitute DHS proposes to require a joint sponsor when the petitioning sponsor or section 204 of the Act, 8 U.S.C. 1154. sponsor’s receipt of means-tested public DHS specifically requests public benefits within 36 months of filing Form substitute sponsor has received a means-tested public benefit within 36 comments on the proposed requirement I–864 indicates that the petitioning for a joint sponsor when the petitioning sponsor or substitute sponsor may be months of executing Form I–864 if the means-tested public benefit was sponsor or substitute sponsor has unable to maintain income equal to at received any means-tested public received on or after the effective date of least 125 percent of the Federal poverty benefits on or after the effective date of 131 132 the rule. The proposed lookback period line, or 100 percent, as applicable, this rule and within 36 months of filing also aligns with DHS’ policy during the period the Affidavit is in Form I–864, including the 36-month determination to require 3 years of effect and indicates that he or she may lookback period. DHS is particularly not have the ability to meet the support Federal income tax returns. Any receipt of a means-tested public interested in views and data that would obligations while the Affidavit is in inform whether, and to what extent, 133 benefit received before the effective date effect. DHS should consider receipt of means- If the petitioning sponsor or substitute of the final rule would be considered only to the extent that it is excluded tested public benefits by petitioning sponsor has received means-tested sponsors and substitute sponsors or if public benefits on or after the effective from the calculation of the sponsor’s there are other potential alternatives date of this rule and within the 36 income, which is USCIS’ current that would better ensure that sponsors month period prior to executing the practice.138 can demonstrate the means to maintain Affidavit he or she would still be This proposed rule provides advance income at the applicable level and are required to execute the Affidavit,134 but notice to aliens and public benefit granting agencies that DHS is able to carry out their support 129 The term ‘‘means-tested public benefits’’ is considering changing how receipt of obligations during the period of used as currently defined in 8 CFR 213a.1 means-tested public benefits would enforceability. throughout this proposed rule. The proposed rule does not substantively amend the definition of what impact the determination of whether an a. Exception for Petitioning Sponsors on constitutes a means-tested public benefit. Active Duty 130 See Affidavits of Support on Behalf of 135 See INA section 213A(a)(1), 8 U.S.C. Immigrants, 71 FR 35731, 35738 (June 21, 2006). 1183a(a)(1). DHS proposes not to apply the joint 131 See INA section 213A(f)(1)(E), 8 U.S.C. 136 See INA section 213A(f)(2), 8 U.S.C. sponsor requirement when the 1183a(f)(1)(E). 1183a(f)(2). See INA section 213A(5)(A), 8 U.S.C. petitioning sponsor has received means- 132 See INA section 213A(f)(3), 8 U.S.C. 1183a(5)(A). tested public benefits within 36 months 1183a(f)(3). 137 See INA section 213A(f)(5)(A), 8 U.S.C. of filing the Form I–864 if the 133 See INA section 213A(a)(1)(A), 8 U.S.C. 1183a(f)(5)(A). See also proposed 8 CFR 1183a(a)(1)(A). 213a.2(c)(2)(ii)(C)(3)(ii). petitioning sponsor is on active duty 134 See INA section 213A(f)(1)(D), 8 U.S.C. 138 See Affidavits of Support on Behalf of (other than active duty for training) in 1183a(f)(1)(D). Immigrants, 71 FR 35731, 35738 (June 21, 2006). the Armed Forces of the United States,

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is petitioning for his or her spouse or 2. Joint Sponsor Required When reimbursement and multiple remedies, child under section 204 of the Act, 8 Petitioning Sponsor or Substitute including liens on real property and U.S.C. 1154, and the petitioning sponsor Sponsor Defaulted on Support garnishment,145 Congress intended for received the means-tested public Obligation sponsors to satisfy these obligations and benefits while on active duty. See DHS proposes revising 8 CFR be held accountable when they failed to proposed 8 CFR 213a.2(c)(2)(ii)(C)(5). 213a.2(c)(2)(ii)(C) to require the do so. The United States Government is applicant to submit a Form I–864 If the petitioning sponsor or substitute profoundly grateful for the unparalleled executed by a joint sponsor when the sponsor defaulted on a support obligation, he or she would still be sacrifices of the members of our armed petitioning sponsor or substitute required to execute an Affidavit but services and their families. Certain sponsor has previously defaulted on a support obligation, as shown by a court would be considered unable to meet the members of the military may earn income requirements under section relatively low salaries, particularly if judgment requiring the petitioning sponsor or substitute sponsor to repay a 213A of the Act, 8 U.S.C. 1183a; in they are early in their careers, that are particular, the petitioner would not be supplemented by certain allowances means-tested public benefit received by a sponsored immigrant. See proposed 8 able to demonstrate the means to and tax advantages.139 The Act already maintain income as required by section imposes a different income threshold on CFR 213a.2(c)(2)(ii)(C)(4)(ii). A petitioning sponsor’s or substitute 213A(f)(6) of the Act, 8 U.S.C. petitioning sponsors who are on active sponsor’s default on a support 1183a(f)(6), regardless of whether the duty (other than active duty for training) obligation is indicative of the individual has since complied with the in the Armed Forces of the United petitioning sponsor’s or substitute support obligation (for example, repaid States and who are petitioning for their sponsor’s inability to demonstrate he or what was owed), and regardless of the spouse or child under section 204 of the she has the means to maintain an individual’s current income. Therefore, the intending immigrant Act, 8 U.S.C. 1134, who must annual income equal to at least 125 would be found to be inadmissible demonstrate the means to maintain an percent of the Federal poverty line,142 or under section 212(a)(4) of the Act, 8 income equal to at least 100 percent of 100 percent as applicable; 143 it is also U.S.C. 1182(a)(4), unless a joint sponsor the Federal poverty line,140 rather than indicative of the inability to provide executed a separate Affidavit.146 Joint the 125 percent of the Federal poverty support to maintain the intending sponsors who have previously defaulted line threshold applicable to all other immigrant at the income threshold on a support obligation would likewise petitioning sponsors.141 This exception during the period the obligation is in 144 be considered unable to meet the to the joint sponsor requirement is effect. In addition, if a petitioning income requirement under section consistent with Congress’ intent to sponsor or substitute sponsor has failed 213A(f)(1)(E) of the Act, 8 U.S.C. impose different requirements on to meet his or her support obligations 1183a(f)(1)(E).147 certain military service-members and for a different alien under a prior DHS considered the alternative of their families, as well as DHS’ policy of Affidavit (as a sponsor) or Contract (as permanently barring an individual who supporting our military personnel. a household member), this can indicate had previously defaulted on a support that he or she may be unable to DHS considered not excepting eligible obligation from becoming a sponsor. reimburse an agency for means-tested However, because section 213A(f)(1)(D) military service-members from the public benefits on additional Affidavits. proposed requirement for a joint of the Act, 8 U.S.C. 1183a(f)(1)(D), If the petitioning sponsor or substitute requires that the petitioner for family- sponsor if the petitioning sponsor has sponsor has failed to fulfill his or her received means-tested public benefits based immigrants be a sponsor, DHS obligation for a different alien on an concluded that such a policy would within 36 months of filing an Affidavit. Affidavit (as a sponsor) or Contract (as unreasonably restrict an individual from However, since certain service-members a household member) and is subject to petitioning for eligible family members already have a different income a judgment for repayment, this may as permitted by section 204 of the Act, threshold requirement, and recognizing negatively impact the petitioning 8 U.S.C. 1154. Instead, DHS proposes the invaluable contributions of service- sponsor’s or substitute sponsor’s income requiring a joint sponsor execute a Form members and their families, DHS because the judgment is similar to a I–864 in this circumstance. proposes excepting eligible service- debt that he or she must repay. There DHS specifically requests public members from this proposed may be some instances when a comments on the proposed requirement requirement. petitioning sponsor’s or substitute for a joint sponsor if the petitioning sponsor’s income is obligated toward sponsor or substitute sponsor has 139 See, e.g., 37 U.S.C. 201–212, 401–439 (Basic paying a judgment, and those previously defaulted on any support Pay and Allowances Other than Travel and petitioning sponsors or substitute obligation. DHS is particularly Transportation Allowances, respectively); Lawrence sponsors may have less income interested in views and data that would Kapp, Cong. Research Serv., Defense Primer: available to support an intending Regular Military Compensation tbl.1 (Dec. 26, inform whether, and to what extent, 2019), available at https://fas.org/sgp/crs/natsec/ immigrant. A petitioning sponsor’s or DHS should consider previous defaults IF10532.pdf (reporting average regular military substitute sponsor’s failure to meet the on support obligations by a petitioning compensation of $41,177 at the E–1 level in 2019, obligation of an Affidavit or Contract is sponsor or substitute sponsor or if there comprised of $20,171 in average annual basic pay, essentially breaching a contract with the are other potential alternatives that plus allowances and tax advantage) (last visited Federal Government. As evidenced by June 2, 2020). See Lawrence Kapp et al., Cong. would better ensure sponsors can Research Serv., RL33446, Military Pay: Key the provisions in section 213a of the demonstrate the means to maintain Questions and Answers 6–9 (2019), available at Act, 8 U.S.C. 1183a, providing for https://fas.org/sgp/crs/natsec/RL33446.pdf 145 See INA section 213A(b)–(c), 8 U.S.C. (describing types of military compensation and 142 See INA section 213A(f)(1)(E), 8 U.S.C. 1183a(b)–(c). Federal tax advantages)(last visited June 2, 2020). 1183a(f)(1)(E). 146 See INA section 213A(f)(2), 8 U.S.C. 140 See INA section 213a(f)(3), 8 U.S.C. 143 See INA section 213A(f)(3), 8 U.S.C. 1183a(f)(2). See INA section 213A(5)(A), 8 U.S.C. 1183a(f)(3). 1183a(f)(3). 1183a(5)(A). 141 See INA section 213a(f)(1)(E), 8 U.S.C. 144 See INA section 213A(a)(1)(A), 8 U.S.C. 147 See INA section 213A(f)(5)(A), 8 U.S.C. 1183a(f)(1)(E). 1183a(a)(1)(A). 1183a(f)(5)(A).

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income at the applicable level and are member has enough income and/or income of at least the income threshold, able to carry out their support assets to help meet the income it is possible that neither the sponsor obligations during the period of threshold, the household member’s nor the household members can alone enforceability. income and assets may actually be meet the support obligations, even unavailable to support the sponsored though both have agreed to be jointly B. Changes to ‘‘Household Income’’ immigrant because the household and severally liable for the support Definition member has other financial obligations. obligation. However, DHS did not want DHS proposes revising 8 CFR 213a.1 DHS believes that limiting household to preclude the immigration of an to change the definition of ‘‘household income to the income of the sponsor, intending immigrant’s minor children income’’ to limit household income to the sponsor’s spouse, and, in certain because the petitioning sponsor could the income of the sponsor, the sponsor’s circumstances, the intending immigrant, not use the income of the intending spouse (if he or she executes a Contract), more accurately reflects income that immigrant parent. Furthermore, DHS and, in specific circumstances, the will be available to the sponsor to recognizes that dual income households intending immigrant. See proposed 8 support the intending immigrant under are a common and accepted way for CFR 213a.1(f). Currently, any household the support obligation. households to meet their needs, DHS member who meets the criteria set forth DHS believes there is a greater decided to continue to take this fact into in the current household income likelihood that the income of the account. DHS specifically requests definition may execute a Contract. sponsor’s spouse (compared to other public comments on the proposed Under the proposed definition, household members) would actually be changes to the household income household income would only include available to the sponsor to support the definition, including the proposed all income of the sponsor and the intending immigrant because spouses limitation on who may execute a sponsor’s spouse (if the sponsor’s often share financial resources with Contract. DHS is particularly interested spouse executes a Form I–864A) each other. DHS further believes that in views and data that would inform obtained from employment in a lawful there is a greater likelihood that the how DHS should define household enterprise or some other lawful source. income of an intending immigrant income, or if there are other potential See proposed 8 CFR 213a.1(f). Under the would actually be available to the alternatives that would help ensure that proposed rule, household income will sponsor if the intending immigrant is household income is actually available not include any income derived from accompanied by his or her spouse or to the sponsor to support the intending unlawful enterprises, such as proceeds children because the intending immigrant. from illegal gambling or drug sales, or immigrant has a vested interest in his or from means-tested public benefits. See her own family’s success and wellbeing C. Changes to ‘‘Household Size’’ proposed 8 CFR 213a.1(f). Like the in the United States. Therefore, DHS DHS proposes revising 8 CFR 213a.1 current definition of household income, concluded that limiting the household to change the definition of household under the proposed rule, household members who could execute a Contract size to also include, for purposes of income can include the income of the to the sponsor’s spouse and the counting household size: any aliens for intending immigrant if the intending intending immigrant if accompanied by whom the sponsor executed a Contract immigrant is either the sponsor’s spouse the intending immigrant’s spouse and Between Sponsor and Household or has the same principal residence as children would better ensure that the Member for whom the support the sponsor, and the preponderance of income the sponsor is relying on is obligation has not terminated (including the evidence shows that the intending actually available to support the any aliens for whom the sponsor has immigrant’s income is derived from intending immigrant. executed a Contract that has not yet employment in a lawful enterprise or DHS considered eliminating the become effective in accordance with 8 some other lawful source, and such Contract entirely, and considering only CFR 213a.2(e)(1), unless that Contract employment is authorized 148 and will the sponsor’s income for the purposes of has been timely withdrawn or the continue to be available to the intending the Affidavit. This would prevent any adjustment of status application or immigrant after they acquire lawful individual who is unable to meet the immigrant visa application associated permanent resident status.149 applicable income threshold based with that Contract has been denied and By limiting whose income may be solely on his or her own income and any appeal exhausted or waived); and considered available to the sponsor, assets from executing an Affidavit any aliens the sponsor has sponsored DHS believes it will reduce the without a joint sponsor also executing under any other Affidavit for whom the possibility of counting income of an Affidavit in which the joint sponsor sponsor’s support obligation has not household members who may not be agrees to be jointly and severally liable terminated (including any aliens for able to, on their own, meet the support for the sponsored immigrant. This whom the sponsor has executed an obligations. The Contract allows a alternative is consistent with section Affidavit that has not yet become sponsor to include the income of a 213A(f)(6)(A)(ii) of the Act, 8 U.S.C. effective in accordance with 8 CFR household member as part of the 1183a(f)(6)(A)(ii), which references only 213a.2(e)(1), unless the sponsor has sponsor’s income in cases where the the income of intending immigrants and either timely withdrawn the Affidavit of sponsor cannot meet it by himself or sponsors. Additionally, it is consistent Support or the adjustment of status herself. While the household member with one of the aims of this rule—better application or immigrant visa agrees to be jointly and severally liable ensuring that sponsors can meet their application associated with that with the sponsor to support the support obligations, insofar as the Affidavit has been denied and any sponsored immigrant(s), the household household member is not required to appeal exhausted or waived). See member does not need to demonstrate demonstrate the means to maintain proposed 8 CFR 213a.1(g). The sponsor that he or she can maintain income at income at the applicable income has already agreed to support these the applicable income threshold. threshold on his or her own or that the individuals when those Affidavits or Moreover, even where a household income is actually available to the Contracts go into effect and these sponsor to use to support the intending support obligations are relevant to the 148 See 8 CFR 274a.12. immigrants. In cases in which the sponsor’s ability to demonstrate means 149 See 8 CFR 213a.1. household member does not have to maintain income to support the

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intending immigrant listed on any other number of individuals sponsored in and other entities when assessing Affidavit, as well as the ability to meet pending Affidavits or Contracts as part individuals’ financial circumstances.154 his or her support obligations once the of a sponsor’s household size will For example, lenders use credit reports Affidavit goes into effect. reduce the instances of sponsors and scores to determine the likelihood With respect to sponsored immigrants undertaking support obligations that that a prospective borrower will repay a and household members who are they cannot, or do not intend to, fulfill. loan.155 counted as part of the household size, DHS believes the proposed change to current regulations require only the the household size definition will help While the sponsor’s credit score or inclusion of aliens whom the sponsor ensure sponsors have the means to report would not determine, by itself, has sponsored under any Affidavit, and maintain income at the applicable whether he or she has demonstrated the for whom the sponsor’s support income threshold and can meet their means to maintain income of at least obligation has not been terminated, as support obligations. This proposed 125 percent of the Federal poverty line well as the number of aliens to be change will also preserve DHS’ limited (or 100 percent as applicable),156 or the sponsored under the current resources and protect the integrity of the means to carry out the support Affidavit.150 However, a sponsor that immigration system by reducing obligations, a poor credit score (below previously agreed to make his or her insufficient Affidavit filings. 580) 157 or negative information on the income or assets available to support credit report such as a high amount of D. Revised Evidentiary Requirements intending immigrants through a outstanding debt, late payments, Contract will undertake a support DHS is proposing revisions to 8 CFR delinquent accounts, collections obligation when that Contract goes into 213a.2(c) to require additional actions, and bankruptcy may indicate effect, which impacts the sponsor’s documentary evidence that sponsors that a sponsor does not have the means ability to demonstrate that he or she need to provide with their Affidavit to to maintain income to support the meets the requirements of section 213A demonstrate that they have the means to intending immigrant or that the sponsor of the Act, 8 U.S.C. 1183a, and has the maintain income at the applicable will not be able to carry out the support means to maintain income to support income threshold. Household members obligations. any other intending immigrants. who execute a Contract will also be If the sponsor has executed other subject to the proposed additional On the other hand, a fair or higher Affidavits and Contracts for aliens that evidentiary requirements. credit score (580 or above) or positive have not yet gone into effect, the 1. Requiring Credit Reports and Credit credit history may indicate that a sponsor has demonstrated the intent to Scores sponsor has the means to maintain support these sponsored immigrants. DHS is proposing amending 8 CFR income to support the intending However, this proposed change 213a.2(c)(2)(ii)(C) to allow immigration immigrant and that the sponsor will be excludes from the household size officers and immigration judges to take able to carry out the support obligation. a sponsor’s credit report and credit individuals named on previously For the same reasons set forth above, score into account when determining executed Affidavits and Contracts where DHS also proposes to consider the credit the support obligation will never take whether a sponsor has the means to maintain an annual income at or above report and score of a household member effect because the Affidavit or Contract executing Form I–864A. was timely withdrawn or the adjustment the threshold, and whether the sponsor of status application or immigrant visa can, in fact, meet his or her support DHS considered not requesting credit application associated with that obligations. See proposed 8 CFR reports and credit scores from sponsors Affidavit or Contract has been denied 213a.2(c)(2)(ii)(C). Credit reports contain and household members executing and any appeal exhausted or waived. information about an individual’s bill Form I–864A. However, DHS This proposed change also reflects the payment history, loans, current debt, determined that the financial status reality of variable processing times and and other financial information such as information provided by credit reports the fact that there may be a considerable the number and type of accounts with and credit scores would assist USCIS in lag between when an immigration overdue payments, collection actions, determining if a sponsor or a household officer or immigration judge reviews a outstanding debt, and the age of the member who executes Form I–864A sponsor’s earlier-executed Affidavit or accounts in the United States.151 Credit actually has the means to maintain the Contract and when an immigration reports may also provide information required income level and whether the officer or immigration judge reviews a about an individual’s work and places sponsor or household member can meet later-submitted Affidavit from the same of residence, lawsuits, arrests, and his or her support obligations. sponsor. bankruptcies in the United States.152 Credit scores rate an individual’s credit The sponsor’s household size should 154 See USA.gov, Credit Reports and Scores, reflect all support obligations the worthiness and credit risk at a point in available at https://www.usa.gov/credit-reports (last sponsor has agreed to undertake as time, and credit scores are based on an visited June 2, 2020). See Cheryl R. Cooper et. al., either a sponsor or as a household individual’s financial history.153 Credit Congressional Research Services, R44125, reports and credit scores are frequently Consumer Credit Reporting, Credit Bureaus, Credit member, which will ensure that the Scoring, and Related Policy Issues, p. 1 (2020), immigration officer or immigration used by lenders, employers, insurers, available at https://fas.org/sgp/crs/misc/R44125.pdf judge can assess whether the sponsor (last visited June 2, 2020). meets the requirements set forth in 151 See USA.gov, Credit Reports and Scores, 155 See Cheryl R. Cooper et al., Congressional section 213A of the Act, 8 U.S.C. 1183a, available at https://www.usa.gov/credit-reports (last Research Services, R44125, Consumer Credit visited June 2, 2020). See also Fed. Trade Comm’n, Reporting, Credit Bureaus, Credit Scoring, and and that the sponsor has demonstrated Consumer Information: Credit Scores (Sept. 2013), Related Policy Issues, p. 1 (2020), available at the ability to meet his or her support available at https://www.consumer.ftc.gov/articles/ https://fas.org/sgp/crs/misc/R44125.pdf (last visited obligations. 0152-credit-scores (last visited June 2, 2020). June 2, 2020). DHS considered keeping the existing 152 See USA.gov, Credit Reports and Scores, 156 See INA section 213A(f)(3), 8 U.S.C. household size definition. However, available at https://www.usa.gov/credit-reports (last 1183a(f)(3). visited June 2, 2020). 157 See Experian, What is a Good Credit Score, DHS concluded that including the 153 See USA.gov, Credit Reports and Scores, available at https://www.experian.com/blogs/ask- available at https://www.usa.gov/credit-reports (last experian/credit-education/score-basics/what-is-a- 150 See 8 CFR 213a.1. visited June 2, 2020). good-credit-score/ (last visited June 2, 2020).

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2. Federal Income Tax Returns for 3 demonstrate the means to maintain sponsor’s ability to maintain the Years income to only the most recent tax year required income threshold over time. is discretionary, and therefore need not Consistent with DHS’ authority in E. Bank Account Information section 213A(f)(6)(A)(i) of the Act, 8 be applied to sponsors. DHS proposes to amend 8 CFR U.S.C. 1183a(f)(6)(A)(i), DHS is By reviewing 3 years of tax returns for 213a.2(c)(2)(v) to add the collection of proposing to amend 8 CFR all sponsors, as well as household the sponsor’s bank account information, 213a.2(c)(2)(i)(A) to require sponsors members executing a Contract, such as type of account (e.g. checking, and household members who execute immigration officers and immigration saving), bank account numbers and Form I–864A to provide Internal judges will have a more complete routing numbers. See proposed 8 CFR Revenue Service-issued certified copies picture of a sponsor’s financial 213a.2(c)(2)(v). DHS also proposes to or Internal Revenue Service-issued circumstances in order to determine if a add the collection of bank account transcripts 158 of their Federal income sponsor or household member who information for a household member tax returns for the 3 most recent taxable executed Form I–864A has who executes Form I–864A. years. See proposed 8 CFR demonstrated the means to maintain 213a.2(c)(2)(i)(A). The statute permits income at the income threshold for the F. Address Change Requirements sponsor’s household size and whether DHS to require tax returns for the 3 most DHS is proposing to revise 8 CFR 159 the sponsor or household member who recent taxable years but the existing 213a.3 to require that all household executed Form I–864A has regulation only requires sponsors to members who execute a Contract must demonstrated that he or she will submit tax returns for the most recent notify DHS within 30 days if they 160 actually be able to fulfill his or her taxable year. The 1997 interim final change their address. See proposed 8 rule implementing section 213A of the support obligation to the intending CFR 213a.3. The current regulation only Act, 8 U.S.C. 1183a, required sponsors immigrant. For purposes of requires sponsors to submit an address to provide copies of the 3 most recent demonstrating the means to maintain change to DHS using Form I–865.167 161 tax years with an Affidavit. However, income, the total income, before Since household members agree to in the 2006 final rule, DHS chose to deductions in the sponsor’s tax return accept the same obligations as a sponsor require sponsors to only submit tax for the most recent taxable year, will with regards to the intending immigrant, returns for the most recent tax year, as continue to be generally it is important that DHS has household 164 permitted by section 213A(f)(6)(B) of the determinative of whether a sponsor’s members’ current addresses and DHS is 162 Act, 8 U.S.C. 1183a(f)(6)(B). The 2006 income is sufficient to maintain the timely notified of any address changes. final rule also allowed sponsors to sponsored immigrant at the income All household members, whether an submit tax returns for the 3 most recent threshold for the sponsor’s household alien, U.S. citizen or U.S. national, tax years, if they believe the additional size. As evidenced by the Act, Congress would be required, under the proposed tax returns may help to establish their concluded that reviewing 3 years of tax rule, to notify DHS within 30 days of ability to maintain the required returns was an important factor in any change of address.168 This provision 163 household income. The alternative of demonstrating a sponsor’s ability to does not alter the current requirement 165 requiring only the tax return from the maintain the required income. that most aliens in the United States most recent tax year demonstrates a Also consistent with the Act, DHS must report each change of address and sponsor’s income for that year, and does proposes clarifying that the tax returns new address within ten days of such not allow immigration officers or must be certified copies issued by the change.169 immigration judges to review a Internal Revenue Service (IRS).166 Upon request, DHS provides sponsor’s ability to maintain that Individuals may request certified copies information about sponsors and income. Therefore, requiring only the from the IRS for the current tax year and household members to benefit-granting tax return from the most recent tax year the prior six years. DHS proposes agencies to assist agencies in performing is not adequately representative of a conforming edits to the regulation to be income deeming and/or to seek sponsor’s ability to support the consistent with these revisions. See reimbursement for means-tested public sponsored immigrant throughout the proposed 8 CFR 213a.2(c)(2)(i)(B), 8 CFR benefits issued to sponsored obligation period. The provision in 213a.2(c)(2)(i)(C)(4), and 8 CFR immigrants. DHS needs to have current section 213A(f)(6)(B) of the Act, 8 U.S.C. 213a.2(c)(2)(i)(D). address information for household 1183a(f)(6)(B), that permits DHS to limit DHS considered keeping the existing members, as well as sponsors, in order the evidence that is submitted to requirement for only 1 year of tax to perform this service for benefit- returns. However, DHS concluded granting agencies. DHS also proposes to 158 A tax transcript summarizes return requiring 3 years of tax returns, instead make household members subject to the information and they are available for the most current tax year after the IRS processes the return. of a single year, has significant value in same civil penalty imposed on sponsors Taxpayers can also get them for the past 3 years. determining sponsor eligibility. By if they fail to provide notice of an See How to Get Tax Transcripts and Copies of Tax reviewing 3 years of tax returns, address change to DHS as required. See Returns from the IRS, available at https:// immigration officers and immigration proposed 8 CFR 213a.3(b). www.irs.gov/newsroom/how-to-get-tax-transcripts- judges will be able to identify patterns and-copies-of-tax-returns-from-the-irs (last visited G. Information Sharing Provisions June 2, 2020). in the yearly income of sponsors, and 159 See INA section 213A(f)(6)(a)(i), 8 U.S.C. thereby better establish not only DHS is proposing to revise 8 CFR 1183a(f)(6)(A)(i). whether the sponsor’s income reached 213a.4 to update how certain 160 See INA section 213A(f)(6)(B), 8 U.S.C. the required threshold in the year the information concerning sponsors and 1183a(f)(6)(B). See also 8 CFR 213a.2(c)(2)(i)(A). sponsored immigrants is submitted to or 161 See Affidavit of Support on Behalf of Affidavit was filed, but also the Immigrants, 62 FR 54346, 54354 (Oct. 20, 1997). requested from USCIS. 162 See Affidavits of Support on Behalf of 164 See INA section 213A(f)(6)(B), 8 U.S.C. Immigrants, 71 FR 35731 (June 21, 2006). 1183a(f)(6)(B). 167 See 8 CFR 213a.3(a)(1). 163 See INA section 213A(f)(6)(B), 8 U.S.C. 165 See INA section 213A(f)(6)(A)(i), 8 U.S.C. 168 See INA section 213A(d), 8 U.S.C. 1183a(d). 1183a(f)(6)(B). See also 8 CFR 213a.2(c)(2)(i)(A). See 1183a(f)(6)(A)(i). See also 8 CFR 213a.3. Affidavits of Support on Behalf of Immigrants, 71 166 See INA section 213A(f)(6)(A)(i), 8 U.S.C. 169 See INA section 265(a), 8 U.S.C. 1305(a). See FR 35731 (June 21, 2006). 1183a(f)(6)(A)(i). also 8 CFR 265.1.

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1. Eliminating Subpoena Requirement (‘‘request form’’). The request form will 213a.1, and also add alphabetical To assist benefit-granting agencies not have a filing fee. designations for each definition. See As an alternative, DHS considered and sponsored immigrants in holding proposed 8 CFR 213a.1. By defining and leaving the subpoena requirement in the sponsors and household members clarifying key terms, this proposed rule regulation. However, to better facilitate accountable for their support would provide greater certainty Congressional intent that sponsors regarding the eligibility criteria for obligations, DHS proposes to revise 8 fulfill their support obligations during sponsors and intending immigrants. CFR 213a.4(a)(3) to make it easier for the period of enforceability, DHS Adding designations for each definition certain parties to obtain certified copies proposes eliminating the subpoena will enhance readability and clarity for of Affidavits from USCIS. See proposed requirement in order to facilitate the the regulation. 8 CFR 213a.4(a)(3). Currently, USCIS initiation of repayment or • Add definition for active duty. DHS will provide a certified copy of an reimbursement actions. This proposed is proposing adding a definition for Affidavit only after USCIS receives a 170 change is also consistent with the ‘‘active duty’’ to include: Full-time duty duly issued subpoena. However, it is Presidential Memo’s directive to in the U.S. Armed Forces, other than burdensome, costly, and inefficient for establish procedures for data sharing, active duty for training, full-time duty parties to obtain subpoenas merely to which will better ensure that existing (other than for training purposes), as a get a copy of an Affidavit. The existing immigration laws are enforced and that commissioned officer of the Regular or requirement may discourage benefit- sponsors fulfill their support obligations Reserve Corps of the Public Health granting agencies and sponsored during the period of enforceability. Service, full-time duty as a immigrants from enforcing the support DHS specifically requests public commissioned officer of the National obligations and/or seeking comments on the proposed change to Oceanic and Atmospheric reimbursement. Also, in signing an eliminate the subpoena requirement. Administration, and full-time duty as a Affidavit, sponsors have already DHS is particularly interested in views cadet or midshipman at the United authorized ‘‘the release of information and data concerning costs associated States Military Academy, United States contained in [the] affidavit, in with obtaining a duly-issued subpoena, Naval Academy, United States Air Force supporting documents, and in my or if there are other potential Academy, or the United States Coast USCIS or DOS records, to other entities alternatives that would help ensure that Guard Academy. These added and persons where necessary for the support obligations, including definitions clarify who is active duty as administration and enforcement of U.S. reimbursement of means-tested public the term is used in section 213A(f)(3) of immigration law.’’ 171 Household benefits, are met. DHS also requests the Act, 8 U.S.C. 1183a(f)(3). DHS members who sign a Contract also comment on the proposed request form proposed this definition because it is authorize the release of information and instructions. consistent with a statutory definition of contained in the Contract.172 DHS active duty created by Congress, which 2. Revising Reporting Processes proposes to eliminate the subpoena applies to Servicemembers and codified requirement to make the reimbursement DHS proposes revising the reporting in 38 U.S.C. 1965. process easier and to better ensure that provisions in 8 CFR 213a.4(c) to provide • Add definition for active duty for sponsors and household members who more efficient mechanisms for fulfilling training. DHS is proposing to add the execute a Contract are meeting their the reporting requirements. The current definition for ‘‘active duty for training’’ support obligations.173 Instead, DHS regulation requires parties that obtain to mean full-time duty in the U.S. proposes that it will provide a certified final judgments against a sponsor to Armed Forces performed by Reserves copy of an Affidavit or Contract after mail certified copies of judgments to the for training purposes, full-time duty for receipt of a formal request to a party or ‘‘Office of Program and Regulation training purposes performed as a entity authorized to receive a certified Development’’ at USCIS’ headquarters commissioned officer of the Reserve copy of an Affidavit or Contract, such as in Washington, DC 174 However, the Corps of the Public Health Service, full- bringing an action to enforce an Office of Program and Regulation time duty as a member, cadet, or Affidavit or Contract, so that the Development no longer exists and midshipman of the Reserve Officers Affidavit or Contract may be used as USCIS’ headquarters is expected to Training Corps while attending field evidence in any action to enforce the relocate in the near future. Similarly, 8 training or practice cruises, and, in the support obligation or as part of a request CFR 213a.4(c)(2) directs entities that case of members of the National Guard for reimbursement. Authorized parties administer means-tested public benefits or Air National Guard of any State, full- or entities will make a formal request by to mail written notice of indigency time duty under sections 316, 502, 503, submitting to USCIS a new form, determinations to the Office of Program 504, or 505 of the title 32, United States Request for Certified Copy of Affidavit and Regulation Development. DHS Code. The term ‘‘active duty for of Support Under Section 213A of the proposes to delete 8 CFR 213a.4(c)(3) in training’’ does not include duty INA or Contract Between Sponsor and its entirety as the program office and performed as a temporary member of the Household Member (Form G–1563) mailing address in that provision are no Coast Guard Reserve. The added longer appropriate. DHS also proposes definition clarifies who is active duty 170 See 8 CFR 213a.4(a)(3). to revise 8 CFR 213a.4(c)(1) and (2) to for training as the term is used in 171 See Instructions for Affidavit of Support delete the outdated mailing instructions. section 213A(f)(3) of the Act, 8 U.S.C. Under Section 213A of the INA, available at https:// Instead, reporting parties will do so in 1183a(f)(3). DHS proposed this www.uscis.gov/i-864 (last visited June 2, 2020). definition because it is consistent with 172 a manner to be described by DHS. See See Instructions for Contract Between a a statutory definition of active duty for Sponsor and Household Member, available at proposed 8 CFR 213a.4(c)(1) and (2). https://www.uscis.gov/i-864a (last visited June 2, training duty created by Congress, 2020). H. Revised Definitions which applies to Servicemembers 173 See Presidential Memorandum, Enforcing the DHS proposes to add new definitions codified in 38 U.S.C. 1965. Legal Responsibilities of Sponsors of Aliens, (May to 8 CFR 213a.1, revise current • Add definition for execute. DHS 23, 2019), available at https://www.whitehouse.gov/ presidential-actions/memorandum-enforcing-legal- definitions of key terms in 8 CFR proposes to add the definition for responsibilities-sponsors-aliens/ (last visited May ‘‘execute’’ to mean, for the purposes of 24, 2019). See 8 CFR 213a.4(c)(1). 174 See 8 CFR 213a.4(c)(1). 8 CFR 213a, an Affidavit of Support

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Under Section 213A of the INA or a revision will better assist immigration officer includes a consular officer, as Contract Between a Sponsor and officers and immigration judges in defined by section 101(a)(9) of the Act, Household Member is executed when a determining whether a sponsor has the as well as an immigration officer, as sponsor or household member signs and means to maintain income of at least defined by § 1.2 of the chapter. This is submits the appropriate forms in 125 percent of the Federal poverty line a technical correction that does not accordance with the form instructions to and whether the sponsor will be able to substantively change the definition of USCIS or the Department of State, as carry out their support obligations. immigration officer as currently defined appropriate. This new definition • Amend household size definition. in 8 CFR 213a.1. replaces the definition in current 8 CFR DHS is proposing to revise the • Amend income definition. DHS is 213a.2(a)(1)(ii), which defines the term definition of ‘‘household size’’ to add proposing to amend the definition of execute only for the purposes of the the requirement that, in addition to the ‘‘income’’ to mean an individual’s total Affidavit. individuals included in the current income (e.g., adjusted gross income for • Amend Federal poverty line definition, a sponsor must include any those who file an Income Tax Return for definition. DHS proposes to revise the other aliens listed on an executed Single Filers With No Dependents) for definition of ‘‘Federal poverty line’’ to Affidavit that has not yet gone into purposes of the individual’s U.S. replace the phrase ‘‘the Service’’ with effect, unless the sponsor has Federal income tax liability, including a ‘‘DHS’’, which reflects the dissolution of withdrawn the Affidavit, or the joint income tax return, excluding any the Immigration and Naturalization application associated with the income earned or derived from unlawful Service and the transference of its duties Affidavit has been denied and any enterprises, such as illegal gambling or and responsibilities to the U.S. appeals have been exhausted or waived. drug sales. Only an individual’s Federal Department of Homeland Security DHS is also proposing to include in income tax return—that is, neither a through the Homeland Security Act of ‘‘household size’’ aliens for whom the state or territorial income tax return nor 2002.175 DHS is also proposing to sponsor has executed a Contract and the an income tax return filed with a foreign amend the Federal poverty line support obligation is still in effect, and government—can be filed with an definition to clarify that the poverty any executed Contract that has not yet Affidavit or with a Contract, unless the guidelines as referenced in the gone into effect, unless the sponsor has individual had no duty to file a Federal definition is the Federal Poverty withdrawn the Contract, or the income tax return, and claims his or her Guidelines (FPG) as issued annually by application associated with the Contract state, territorial or foreign taxable HHS. has been denied and any appeals have income is sufficient to establish the • Amend household income been exhausted or waived. The sufficiency of the Affidavit or the definition. DHS is proposing to revise proposed amendment would also Contract. The proposed amendment, the definition of ‘‘household income’’ to eliminate the sponsor’s ability to consistent with the statute, requires a mean the income used to determine include the income of household sponsor to provide verified information whether a sponsor meets the minimum members besides a spouse who regarding his or her income, and income requirements under sections executed Form I–864A and the therefore provide reliable information 213A(f)(1)(E), 213A(f)(3), or 213A(f)(5) intending immigrant in order to meet regarding a sponsor’s ability to support of the Act, 8 U.S.C 1183a(f)(1)(E), (f)(3), the income requirements of section the intending immigrant. or (f)(5). Under the proposed amended 213A of the Act, 8 U.S.C. 1183a. DHS • Amend joint sponsor definition. definition, household income will is proposing this change to correspond DHS is proposing to revise the include all income, obtained from with the proposed amendment of the definition of ‘‘joint sponsor’’ to refer to employment in a lawful enterprise or definition of household income, which the sponsor who filed the immigrant some other lawful source, of the would exclude the income of any petition on behalf of the intending sponsor, the sponsor’s spouse if the individual other than the sponsor, the immigrant as the ‘‘petitioning sponsor’’. spouse submitted a Contract, and the sponsor’s spouse, and the intending This amendment corresponds with intending immigrant’s income that will immigrant. These proposed section 213A(f)(5)(A) of the Act, 8 continue to be available to the intending amendments, consistent with the U.S.C. 1183a(f)(5)(A), which uses the immigrant after he or she acquires statute’s purpose of ensuring sponsors term ‘petitioning sponsor’ and clarifies lawful permanent resident status. fulfill their support obligations, will the identity of the intending Household income will not include provide a more accurate assessment of immigrant’s sponsor. income from employment that has not the number of individuals the sponsor • Add definition for petitioning yet actually begun, income derived from is currently supporting or is seeking to sponsor. DHS is proposing to add a unlawful enterprises, such as proceeds support. The revised definition will definition of ‘‘petitioning sponsor’’ to from illegal gambling or drug sales, any assist DHS in determining if a sponsor mean a sponsor who meets all the intending immigrant income derived meets the support requirements, has requirements of section 213A(f)(1)(A) from employment that is not authorized demonstrated the means to maintain through (E) of the Act; meets the under 8 CFR 274a.12, or income from income at the required income level, requirements of section 213A(f)(1)(A), means-tested public benefits, as defined and will be able to meet their support (B), (C), and (D) and (f)(2) of the Act; in 8 CFR 213a.1(l). This proposed obligations. meets the requirements of section definition will clarify that household • Amend immigration officer 213A(f)(1)(A), (B), (C), and (D) and (f)(3) income will not include the income of definition. DHS is proposing to revise of the Act; meets the requirements of household members other than the the definition of ‘‘immigration officer’’ section 213A(f)(1)(A), (B), (C), and (D) sponsor, the sponsor’s spouse who by updating an incorrect reference. and (f)(4)(A) and (f)(4)(B)(i) of the Act; executed a Contract, or the intending Immigration officer as defined for or meets the requirements of section immigrant, in order for the sponsor to purposes of 8 CFR chapter I is currently 213A(f)(1)(A), (B), (C), (f)(4)(A) and meet the income requirements of section found in 8 CFR 1.2, and not 8 CFR (f)(4)(B)(ii) of the Act. This definition, 213A of the Act, 8 U.S.C. 1183a. This 103.1(j) as 8 CFR 213a.1 currently consistent with the statute, indicates. Proposed 8 CFR 213a.1(h) is differentiates between the petitioning 175 See Homeland Security Act of 2002, Public revised to provide that, solely for sponsor, as proposed above, any joint Law 107–296 (Nov. 25, 2002). purposes of this part, immigration sponsor who accepts joint and several

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liability with the petitioner,176 and a adoption under sections 101(b)(1)(F) status is adjusted to that of lawful substitute sponsor, who accepts the and 101(b)(1)(G) of the Act, 8 U.S.C. permanent resident. The child may then petitioning sponsor’s support 1101(b)(1)(F) and 1101(b)(1)(G). file an Application for Certificate of obligations if the petitioning sponsor The current regulation does not Citizenship, Form N–600, to receive the dies after the immigrant petition was address the different ways that a child Certificate of Citizenship.182 The approved.177 DHS proposes conforming may come to the United States to be certificate generally would be dated as edits throughout the regulation to be adopted as described in sections of the date the child was admitted as a consistent with this new definition. 101(b)(1)(E), 101(b)(1)(F), and lawful permanent resident. Stepchildren • Amend definition of sponsor. DHS 101(b)(1)(G) of the Act, 8 U.S.C. of U.S. citizens are not eligible for is proposing to revise the definition of 1101(b)(1)(E), 1101(b)(1)(F), and acquisition of citizenship under section ‘‘sponsor’’ to include the three 1101(b)(1)(G). Therefore, these clarifying 320 of the Act, 8 U.S.C. 1431, unless the categories of sponsors: Petitioning edits provide the specific provisions child is adopted by the U.S. citizen step- sponsor, joint sponsor, and substitute under the INA that apply to adopted parent.183 sponsor. This proposed amendment, children who are and who are not • Orphan adopted abroad by a U.S. consistent with statute, clarifies the subject to the Affidavit requirement. citizen (IR–3/IR–8)—requires an categories of sponsors and corresponds Alien children of U.S. citizens, who approval of a Petition to Classify to the obligations defined in the statute must first establish eligibility for Orphan as an Immediate Relative, Form of each category. DHS proposes admission, are subject to section I–600. These children are generally conforming edits throughout the 212(a)(4) of the Act, 8 U.S.C. 1182(a)(4), admitted as lawful permanent residents, regulation to be consistent with this even though they may later acquire U.S. and USCIS will send a Certificate of new definition. citizenship upon meeting the Citizenship to the child without a Form • Add definition for U.S. Armed requirements of section 320 of the Act, N–600 being filed or adjudicated, Forces, otherwise known as Armed 8 U.S.C. 1431.179 However, children of provided the child has taken up Forces of the United States. DHS is U.S. citizens who will automatically residence in the United States in the proposing to add the definition of ‘‘U.S. acquire citizenship under section 320 of legal and physical custody of the Armed Forces’’ to mean Army, Navy, the Act, 8 U.S.C. 1431, after admission adoptive parents. Air Force, Marine Corps, and Coast to the United States as an LPR and • Hague Convention Adoptee adopted Guard as codified in 10 U.S.C. 101(a)(4). taking up residence in the legal and abroad by a U.S. citizen (IH–3/IH–8)— This definition, consistent with the physical custody of their U.S. citizen requires an approval of a Petition to statute, clarifies the key term in the parent, are exempt from the Affidavit Classify Convention Adoptee as an proposed definitions for ‘‘active duty’’ requirement under the current Immediate Relative, Form I–800. These and ‘‘active duty for training.’’ 178 regulations and will continue to be children are generally admitted as exempt under the proposed lawful permanent residents and USCIS I. Clarifying Affidavit Requirements for regulations.180 will send a Certificate of Citizenship to Certain Children of U.S. Citizens The following categories of children the child without a Form N–600 being Acquiring U.S. Citizenship automatically acquire citizenship after filed or adjudicated, provided the child DHS proposes to clarify the admission as lawful permanent has taken up residence in the United exemption from the Affidavit residents and beginning to reside in the States in the legal and physical custody requirement for foreign-born children legal and physical custody of their U.S. of the adoptive parents. who will automatically acquire U.S. citizen parent(s) and are exempt from Children who are considered to be citizenship under section 320 of the Act filing an Affidavit: 181 coming to the United States for after admission to the United States as • Child of a U.S. citizen (IR–2/IR–7)— adoption, however, must generally take an LPR and taking up residence in the requires an approval of a Petition for some additional steps to acquire legal and physical custody of their U.S. Alien Relative, Form I–130. These citizenship and therefore are required to citizen parent. DHS is not adding a new children are generally admitted as file a Form I–864 or Form I–864EZ exemption, but rather, is identifying lawful permanent residents or their under the current and proposed which immigrant categories of children regulations. The proposed rule would need to file an Affidavit, and which do 179 Note that children born abroad to U.S. citizen clarify which children are considered to not, as described below. Accordingly, parents may also acquire U.S. citizenship at birth under certain circumstances, such as where both be coming to the United States for DHS proposes to amend 8 CFR parents are U.S. citizens and one parent had resided adoption and therefore subject to the 213a.2(a)(2)(ii)(E) to clarify that 8 CFR in the United States prior to the child’s birth, or Affidavit requirement. The following 213a.2(a)(1) does not apply if the where one parent is a U.S. citizen who was categories of children are considered to intending immigrant: physically present in the United States for at least be coming to the United States for • Is the child of a U.S. citizen, and five years, two of which were after age 14. Such children would enter the United States as U.S. adoption and required to file a Form I– the child’s lawful admission for citizens and would not be subject to an 864 or Form I–864EZ: permanent residence and residence in admissibility determination. See INA sections 301 • Orphan to be adopted by a U.S. the United States in the U.S. citizen and 309, 8 U.S.C. 1401 and 1409. These children citizen (IR–4/IR–9). These children are parent(s)’ legal and physical custody would apply with DOS for a Consular Report of Birth Abroad and/or passport. See Department of admitted as lawful permanent residents. will result in the child’s automatic State, Consular Reports on Birth Abroad, available Generally, the parent(s) must complete acquisition of citizenship under section at https://travel.state.gov/content/congress-liaison- the adoption in the United States.184 320 of the Act, 8 U.S.C. 1431, as home/en/Congressional_Liaison/Americans- • Hague Convention Adoptee to be amended, unless the child is considered Abroad/consular-reports-of-birth-abroad.html (last adopted by a U.S. citizen (IH–4/IH–9). to be coming to the United States for visited June 2, 2020). 180 See Child Citizenship Act, Public Law 106– 395, 114 Stat. 1631 (Oct. 30, 2000). See also 8 CFR 182 Except for stepchildren of U.S. citizens who 176 See INA section 213A(f)(2), 8 U.S.C. 213a.2(a)(2)(ii)(E). Stepchildren of U.S. citizens are are not eligible for acquisition of citizenship under 1183a(f)(2). See INA section 213A(5)(A), 8 U.S.C. not eligible for acquisition of citizenship under section 320 of the Act or unless the child is adopted 1183a(5)(A). section 320 of the Act unless the child is adopted by the U.S. citizen step-parent. See INA section 177 See INA section 213A(f)(5)(B), 8 U.S.C. by the U.S. citizen step-parent. See INA section 101(c)(1), 8 U.S.C. 1101(c)(1). 1183a(f)(5)(B). 101(c)(1), 8 U.S.C. 1101(c)(1). 183 See INA section 101(c)(1), 8 U.S.C. 1101(c)(1). 178 See 10 U.S.C. 101(a)(4). 181 See 8 CFR 213a.2(a)(2)(ii)(E). 184 See 8 CFR 320.1.

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These children are admitted as lawful For these reasons, the continued Therefore, an adjustment of status permanent residents. Generally, the exemption of children automatically applicant already needs to provide parent(s) must complete the adoption in acquiring citizenship under section 320 evidence that he or she is exempt from the United States.185 of the Act, 8 U.S.C. 1431, after filing an Affidavit, thereby eliminating Congress has enacted numerous laws admission as a lawful permanent the need for filing Form I–864W. over the last two decades to ensure that resident and beginning to reside in the Removing the requirement for certain foreign-born children of U.S. citizens legal and physical custody of their U.S. applicants to file a form and are not subject to adverse immigration citizen parent(s) from the Affidavit affirmatively request the exemption will consequences in the United States on requirement is consistent with Congress’ be less burdensome for applicants as account of their foreign birth. Most strong interest in supporting U.S. well as USCIS. Accordingly, DHS will notably, the Child Citizenship Act of citizens seeking to welcome foreign- eliminate the use and consideration of 2000 186 provides that children, born children into their families. Form I–864W. including certain adopted children, of J. Miscellaneous Other Changes DHS proposes revising 8 CFR U.S. citizen parents automatically 213a.2(a)(2)(ii) to accurately identify all DHS proposes deleting 8 CFR acquire U.S. citizenship if certain of the classes of intending immigrants 187 213a.2(a)(1)(ii), which explains when an conditions are met. The same year, who are exempt from the Form I–864 Affidavit is executed. There is no Congress passed the Intercountry requirement. See proposed 8 CFR 188 similar provision that explains when a Adoption Act of 2000 (IAA) to 213a.2(a)(2)(ii)(F)–(EE). implement the Hague Convention on Contract is executed. As noted in section H. above, DHS proposes to add DHS proposes revising the support Protection of Children and Co-operation requirements in 8 CFR 213a.2(c)(1)(i) to in Respect of Intercountry Adoption a definition for the term ‘‘execute’’ in proposed 8 CFR 213a.1 that would be more consistent with section (Hague Adoption Convention or 213A(f)(1) of the Act, 8 U.S.C. 189 apply to both Affidavits and Contracts, Convention), which established 1183a(f)(1) and include the international standards of practices for and would clarify what execute means throughout the proposed rule. requirements that in general, a sponsor intercountry adoptions. The IAA must be petitioning for the admission of protects the rights of children, birth Therefore, the provision in 8 CFR 213a.2(a)(1)(ii) would no longer be the alien under section 204 of the Act families, and adoptive parents, and and demonstrate the means to maintain improves the Government’s ability to necessary and DHS proposes its deletion. an annual income equal to at least 125 assist U.S. citizens seeking to adopt percent of the Federal Poverty children from abroad.190 DHS proposes deleting 8 CFR 213a.2(a)(1)(i)(B) as not necessary. guidelines based on the sponsor’s household size. See proposed 8 CFR 185 See INA section 101(b)(1), 8 U.S.C. 1101(b). Currently, the regulations require 186 See Public Law 106–395, section 101(a), 114 certain intending immigrants to file 213a.2(c)(1)(i). Stat. 1631, 1631 (codified at INA section 320(a)–(b), Form I–864W, Request for Exemption DHS proposes amending 8 CFR 8 U.S.C. 1431(a)–(b)); see also Children Born for Intending Immigrant’s Affidavit of 213a.2(c)(2)(iii)(B) to clarify which types Outside the United States; Applications for of assets may be considered significant Certificate of Citizenship, 66 FR 32137 (June 13, Support, to establish that they are 2001). The CCA applies to children who were under exempt from the Affidavit requirement. assets for Affidavit purposes, including 18 as of , 2001. The law was passed However, DHS has determined these that non-cash assets must be able to be after several high-profile cases in which children classes of intending immigrants must converted into cash within 12 months. who were adopted abroad were subject to provide evidence that they are exempt See proposed 8 CFR 213a.2(c)(2)(iii)(B). deportation despite having grown up in the United States and having believed that they were U. S. from the Affidavit requirement as part of This revision reflects USCIS’ existing citizens. submitting the Form I–485, Application policy and the instructions for Form I– 187 See 8 CFR part 320; see also Dep’t of State, to Register Permanent Residence or 864.193 How DHS calculates significant FAQ: Child Citizenship Act of 2000, available at Adjust Status. assets would not change by clarifying https://travel.state.gov/content/travel/en/ As part of the adjustment of status Intercountry-Adoption/adopt_ref/adoption-FAQs/ that the significant assets are calculated child-citizenship-act-of-2000.html (last visited June process, USCIS is responsible for by reference to FPG as this revision 2, 2020). determining whether the applicant has reflects the proposed revision of the 188 See Public Law 106–279, 114 Stat. 1631 met his or her burden of proof to definition of Federal poverty line which (codified at 42 U.S.C. 14901–14954). See also establish eligibility for the benefit, would be based on the FPG. DHS also Hague Convention on Intercountry Adoption; Intercountry Adoption Act of 2000; Accreditation of which includes a determination of proposes adding 8 CFR 213a.6, adding Agencies; Approval of Persons, 71 FR 8063 (Feb. 15, whether the alien has demonstrated that a severability clause in the event that 2006). no inadmissibility grounds in section any of the provisions in this part are not 189 The United States signed the Convention in 212(a) of the Act, 8 U.S.C. 1182(a), implemented. 1994, and the Convention entered into force for the apply.191 Failure to submit an Affidavit United States on April 1, 2008. See Deposit of K. Transition Period Instrument of Ratification by the United States of when required results in a the Hague Convention on Protection of Children determination of inadmissibility based DHS proposes that all applications for and Co-operation in Respect of Intercountry on the public charge ground irrespective adjustment of status and applications Adoption, 72 FR 71730 (Dec. 18, 2007). For the full of any other statutory factors.192 text of the Convention, see also Hague Conference, for immigrant visas postmarked (or if 33. Convention on Protection of Children and Co- applicable, electronically submitted) Operation in Respects of Intercountry Adoption family. Adoption breaks down barriers and helps before the effective date of the final rule (Concluded May 29, 1993), available at https:// build families.’’). A year earlier, Congress passed will be adjudicated under the criteria assets.hcch.net/docs/77e12f23-d3dc-4851-8f0b- Public Law 106–139, 113 Stat. 1696 (1999), to 050f71a16947.pdf (last visited June 2, 2020). amend the definition of ‘‘child’’ in section currently found in 8 CFR part 213a as 190 See IAA section 2, 42 U.S.C. 14901(a); see also 101(b)(1)(E) of the INA, 8 U.S.C. 1101(b)(1)(E), a 146 Cong. Rec. S8938–01, S8938 (daily ed. Sept. 21, change that allowed children adopted abroad to 193 See Instructions for Affidavit of Support 2000) (statement by Sen. Landrieu) (‘‘I have said it maintain their familial relationship with their Under Section 213A of the INA, available at https:// before and I believe it rings true here, adoption natural siblings, making it easier for siblings to be www.uscis.gov/i-864. See also USCIS Adjudicator’s brings people, whether they are Republican, adopted together. Field Manual, Chapter 20.5(k)(5)(B), available at Democrat, conservative, liberal, American, Russian 191 See INA section 291, 8 U.S.C. 1361. https://www.uscis.gov/sites/default/files/ or Chinese, together. United by the belief that all 192 See INA section 212(a)(4)(C) and (D), 8 U.S.C. policymanual/afm/afm20-external.pdf (last visited children deserve to grow in the love of a permanent 1182(a)(4)(C) and (D). June 4, 2020).

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promulgated by the 2006 final rule.194 submitting an Affidavit. The updated spouse household members. This All applications for adjustment of status evidentiary requirements would provide provision reflects DHS’ policy and applications for immigrant immigration officers and immigration preference that intending immigrants visaspostmarked (or if applicable, judges more effective ways to determine should not rely upon a sponsor and a electronically submitted) on or after the whether the sponsor has the means to potentially unlimited group of effective date of the final rule will be maintain an annual income at or above household members to satisfy the adjudicated according to the provisions the required income threshold, and requirements of INA 213A. of the final rule. DHS invites public whether the sponsor is able to provide comment on other possible approaches financial support to the intending The proposed rule would update and to the transition period between the immigrant and meet all support improve how means-tested public current regulations and the proposed obligations during the period the benefit-granting agencies obtain revisions. Affidavit is in effect. Specifically, the immigration status information from proposed rule would require sponsors USCIS about individuals who are V. Statutory and Regulatory and household members to provide seeking means-tested public benefits Requirements Federal income tax returns for the 3 and how means-tested public benefit A. Executive Order 12866 (Regulatory most recent tax years, instead of 1 tax granting agencies provide information to Planning and Review) and Executive return for the most recent tax year, USCIS. The current practices are Order 13563 (Improving Regulation and recent credit reports and credit scores, outdated and burdensome, and Regulatory Review) and bank account information. discourage important information Executive Orders (E.O.) 12866 and In addition, the proposed rule would sharing and data collection. In order to 13563 direct agencies to assess the costs revise policies related to a sponsor’s address this specifically, the proposed and benefits of available regulatory prior receipt of means-tested public rule would: benefits or default on another Affidavit alternatives and, if regulation is • Eliminate the requirement of a duly or Contract support obligation. Sponsors necessary, to select regulatory issued subpoena in order for USCIS to who have themselves received means- approaches that maximize net benefits provide a certified copy of an Affidavit (including potential economic, tested public benefits may not have the financial means to support a sponsored to a requesting party, and instead allow environmental, public health and safety requesting parties to submit a formal effects, distributive impacts, and immigrant. Similarly, a sponsor who has previously failed to fulfill their support request for an Affidavit or a Contract to equity). E.O. 13563 emphasizes the USCIS. Eliminating this requirement importance of quantifying both costs obligations may be an unreliable source of support or repayment for Affidavit would allow for a less cumbersome and benefits, reducing costs, process than obtaining a subpoena. harmonizing rules, and promoting purposes. Specifically, this proposed • flexibility. rule would require a joint sponsor when Implement the proposed new Form This proposed rule is designated a a sponsor has received means-tested G–1563, Request for Certified Copy of ‘‘significant regulatory action’’ that is public benefits within the past 36 Affidavit of Support Under Section economically significant since it is months and/or has had a judgment 213A of the INA or Contract Between estimated the proposed rule likely against him or her for a previous Sponsor and Household Member, for would have an annual effect on the Affidavit. those from a party or entity authorized Moreover, the proposed rule would economy of $100 million or more, under to bring an action to enforce an Affidavit revise who may execute a Contract. section 3(f)(1) of E.O. 12866. or Contract making a formal request to Currently, there is no limit on how Accordingly, the Office of Management USCIS to provide a certified copy of the many household members or which and Budget (OMB) has reviewed this requested Affidavit or Contract that has proposed regulation. household members may execute a Contract. DHS intends to permit only a been executed on behalf of a sponsored 1. Summary of Changes of the Proposed sponsor’s spouse or, in certain immigrant for use as evidence in any Rule circumstances, the intending immigrant, action of enforcement. DHS is proposing to amend its to execute a Contract. An intending • Remove an incorrect address and regulations related to Affidavits at 8 immigrant may only execute a Contract state that parties who obtain judgments CFR part 213a by revising sponsorship if he or she has an accompanying against a sponsor or household member requirements to better ensure a sponsor spouse or children; if the intending who executed a Contract Between has the means to support intending immigrant is the only immigrant being Sponsor and Household Member, and immigrants at the statutorily-required sponsored, the intending immigrant’s Federal, state, or local program or level. The proposed rule is intended to income may be included as part of the private entities that make a better ensure all sponsors and sponsor’s Affidavit if it meets the determination under section 421(e) of 195 household members who execute an definition of household income. DHS the Personal Responsibility and Work Affidavit or Contract can meet the believes who may execute a Contract Opportunity Reconciliation Act of 1996 support obligations under section 213A would better ensure that any income in the case of any sponsored immigrant, of the Act, 8 U.S.C. 1183a(a). This rule used by the petitioning sponsor to must notify USCIS in a manner to be would also strengthen enforcement of support the sponsored alien is actually designated by USCIS. Affidavits to hold sponsors and available to the sponsor for the support Lastly, DHS proposes to update the household members accountable if of the intending immigrant. As data are regulation to clarify which categories of sponsored immigrants obtain means- unavailable demonstrating that non- aliens are exempt from the requirement tested public benefits during the period spouse household members are less in which the obligations are in effect. likely to uphold their contract to file an Affidavit, and to add and The proposed rule would update the obligations, DHS cannot provide revise definitions to provide greater evidentiary requirements for sponsors examples of or other information clarity within the regulations and concerning enforcement involving non- conform to statutory changes made 194 See Affidavits of Support on Behalf of since the final rule was promulgated in Immigrants, 71 FR 35731 (June 21, 2006). 195 See 8 CFR 213a.1. 2006.

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2. Summary of Costs and Benefits of the proposed rule would be approximately rate and about $1,687,869,350 at a 7 Proposed Rule $240,314,623 annually for those percent discount rate. The proposed rule would impose new executing an Affidavit for an intending The primary benefit of the proposed net costs on the population of sponsors immigrant using Form I–864, Form I– rule would be to better ensure that the executing an Affidavit using Form I–864 864EZ, for those executing a Contract sponsored immigrant is financially or Form I–864EZ as well as the using Form I–864A, and for those supported, as required by law, and that population of household members who submitting a notice of a change of means-tested public benefit granting execute a Contract using Form I–864A address after moving using Form I–865, agencies can more efficiently seek for those filing Form G–1563 to make a so that a sponsor can use the household reimbursement from sponsors or formal request for a certified copy of member’s income and/or assets to household members when a sponsored and Affidavit or Contract, as well as demonstrate means to maintain income. immigrant receives means-tested public accounting for the estimated cost Additionally, the proposed rule would benefits. impose new net costs on the population savings for immigrants applying for executing Form I–864A as a household adjustment of status who would have DHS also anticipates the proposed member who would now be required to needed to request an exemption from rule to produce benefits by submit Form I–865 to provide notice of filing an Affidavit as DHS is proposing strengthening the enforcement a change of address after moving. to eliminate Form I–864W for use when mechanism for Affidavits and Contracts Moreover, the proposed rule would filing Form I–485. The estimated new through elimination of the subpoena produce some cost savings for quantified net costs of the proposed rule requirement in 8 CFR 213a.4 to make it immigrants applying for adjustment of would be based on an increased easier for means-tested public benefit status who would have needed to opportunity costs of time for completing granting agencies to recover payment for request an exemption from filing an Form I–864, Form I–864A, and Form I– any means-tested public benefits that an Affidavit as DHS is proposing to 864EZ,197 as well as new requirements intending immigrant receives during the eliminate Form I–864W for use when for completing these forms, including: period in which an Affidavit or a filing Form I–485. Instead, individuals • Obtaining credit reports and credit Contract is enforceable. The proposed would be required to provide the scores, rule would update the evidentiary information previously requested on • obtaining Internal Revenue Service requirements for sponsors submitting an Form I–864W when filing Form I–485. (IRS)-issued certified copies or Affidavit and household members DHS has determined that the transcripts of Federal income tax returns submitting Contracts, which would information an applicant provides on for the 3 most recent taxable years, and provide immigration officers and • Form I–485 would be sufficient for an opportunity cost of time to file IRS immigration judges more effective ways adjudications officer to be able to verify Form 4506, Request for Copy of Tax to determine whether individuals have whether an immigrant is statutorily Return, to obtain IRS-issued certified the means to maintain an annual required to file an Affidavit. Federal income tax returns for income at or above the outlined income This proposed rule also would impose completing Form I–864 and Form I– threshold and provide financial support new costs on those from a party or 864EZ. to the intending immigrant and meet all The estimated new quantified net entity authorized to bring an action to support obligations during the period an costs of the proposed rule also would be enforce an Affidavit or Contract making Affidavit or Contract is in effect. based on the proposed requirement that a formal request using the proposed new Additionally, the proposed rule would Form G–1563 so that USCIS may those who file Form I–864A use Form update and improve how means-tested provide a certified copy of the requested I–865 to provide notice of a change of public benefit granting agencies obtain Affidavit or Contract that has been address after moving. information from USCIS about sponsors executed on behalf of a sponsored Over the first 10 years of and household members who have a immigrant for use as evidence in any implementation, DHS estimates the total support obligation in effect and how action of enforcement. DHS estimates quantified new net costs of the proposed the total cost for filing the proposed new rule would be $2,403,146,230 means-tested public benefit granting Form G–1563 would be approximately (undiscounted). DHS estimates that the agencies provide information to USCIS. $779 annually.196 10-year discounted total net costs of this Table 2 provides a more detailed DHS estimates the total new proposed rule would be about summary of the proposed provisions quantified net costs imposed by the $2,049,932,479 at a 3 percent discount and their impacts. TABLE 2—SUMMARY OF MAJOR CHANGES TO PROVISIONS AND ESTIMATED ECONOMIC IMPACTS OF THE PROPOSED RULE

Provisions Proposed provision Estimated impact of proposed provision

Amending 8 CFR 213a.1. Defi- Adds new and updates existing Quantitative: nitions. definitions. Costs: Revising 8 CFR 213a.2. Use of Outlines circumstances, require- • Total annual net costs of the proposed rule would be about $240.3 million, including: Affidavit of Support. ments, and exemptions for • $226.6 million to applicants who must file Form I–864; executing an Affidavit of Sup- • $10.63 million to those who must complete Form I–864A; port Under Section 213A of the INA.

196 Calculation: $31.17 (cost per filer to file Form = $779.25 = $779 (rounded) annual total cost to file individuals filing Forms I–864, I–864A, and I– G–1563) * 25 (estimated annual population who Form G–1563. 864EZ are accounted for in the increased time would make a formal request using Form G–1563) 197 The quantified cost of the new requirement to burden estimate for completing these forms. provide bank account information for those

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TABLE 2—SUMMARY OF MAJOR CHANGES TO PROVISIONS AND ESTIMATED ECONOMIC IMPACTS OF THE PROPOSED RULE—Continued

Provisions Proposed provision Estimated impact of proposed provision

Adding 8 CFR 213a.3 Change Requires sponsors and house- • $6.75 million to applicants who must file Form I–864EZ; of Address. hold members to notify • $3.68 million cost savings to applicants from eliminating Form I–864W; USCIS of any change of ad- • $2,751 to those who must file Form I–865; and dress within 30 days while • $779 to those who file the proposed new Form G–1563. the sponsor’s and/or house- hold member’s support obli- gation is in effect. Amending 8 CFR 213a.4. Ac- Outlines process by which • Total net costs over a 10-year period would range from: tions for reimbursement, pub- USCIS provides a certified • $2.40 billion for undiscounted net costs; lic notice, and congressional copy of Affidavit of Support • $2.05 billion at a 3 percent discount rate; and reports. Under Section 213A of the • $1.69 billion at a 7 percent discount rate. INA or Contract Between Sponsor and Household Member that has been exe- cuted to a party or authorized entity. Qualitative: Costs • The proposed rule may impose some costs if a joint sponsor must execute an Affidavit in cases where a sponsor has received any means-tested public benefits within 36 months of fil- ing the Affidavit and/or has failed to meet the support or reimbursement obligations under an existing Affidavit or Contract. • There could be a reduction in the number of immigrants granted an immigration benefit in cases where the intending immigrant is unable to obtain a sponsor who can meet the new re- quirements under this proposed rule. • The proposed rule could result in some sponsors who may intend to sponsor a family member in the future to forego enrollment or disenroll from a means-tested public benefits program to avoid triggering the proposed additional requirements. • The proposed rule may result in an increased number of individuals with support obligations who are held accountable for the reimbursement of the cost of means-tested public benefits. Further, sponsors or household members would incur the cost of reimbursing the means-test- ed public benefits-granting agency and would likely incur the costs of legal representation if means-tested public benefits granting agencies choose to pursue legal action to recover the means-tested public benefits a sponsored individual received. Benefits • Update evidentiary requirements to provide USCIS with more effective ways to determine whether the sponsor has the means to maintain an annual income at or above the outlined in- come threshold. These updated requirements would better enable officers to determine whether the sponsor is able to provide financial support to the intending immigrant and meet all support obligations during the period the Affidavit is in effect; • Update and improve how means-tested public benefit-granting agencies obtain immigration status information from USCIS about individuals who are seeking means-tested public bene- fits and how means-tested public benefit-granting agencies provide information to USCIS. This proposed provision would eliminate the requirement of obtaining a duly issued subpoena be- fore USCIS is authorized to provide a certified copy of Form I–864 or Form I–864EZ to a re- questing party for use in any action to enforce the support obligation and instead allow a re- questing party to submit a formal request for an Affidavit or a Contract directly to USCIS. This will strengthen the enforcement mechanism for Affidavits and Contracts, which would allow means-tested public benefits-granting agencies to recover payment for any means-tested pub- lic benefits that a sponsored alien receives during the period in which an Affidavit or Contract is enforceable; and • Revise the process for informing USCIS about judgments obtained against sponsors (for fail- ing to meet prior support obligations as a sponsor or household member) and indigency deter- minations to give USCIS flexibility to determine a more efficient mechanism for information re- porting, whereby USCIS would be permitted to provide a different mechanism for submitting copies of judgments and indigency determinations to ensure accuracy and efficiency. Source: USCIS analysis.

DHS does not have sufficient data to better ensuring sponsors and household accountable for those support quantify the expected benefits of the members who execute a Contract are obligations. proposed rule. However, the capable of meeting their support In addition to the impacts Administration has identified obligations under section 213A of the summarized above and as required by enforcement of sponsorship obligations INA, 8 U.S.C. 1183a, and strengthening OMB Circular A–4, Table 3 presents the as a priority and DHS has made a policy the enforcement mechanism for the prepared accounting statement showing determination that the proposed Affidavit and Contract so that sponsors the costs associated with this proposed changes in this rule will assist with and household members are held regulation.198

198 See OMB Circular A–4 is available at https:// www.whitehouse.gov/sites/whitehouse.gov/files/ omb/circulars/A4/a-4.pdf (last visited June 2, 2020).

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TABLE 3—OMB A–4 ACCOUNTING STATEMENT ($, 2019)

Category Primary estimate Minimum estimate Maximum estimate Source citation

Benefits: Monetized Benefits ...... N/A RIA.

Annualized quantified, but un-monetized, benefits ...... N/A RIA.

Unquantified Benefits ...... DHS anticipates the proposed rule would produce qualitative RIA. benefits that would: • Update evidentiary requirements to provide USCIS more effective ways to determine whether the sponsor has the means to maintain an annual income at or above the outlined income threshold. These updated requirements would better enable USCIS to determine whether the sponsor is able to provide financial support to the intending immigrant and meet all support obligations during the period the Affidavit is in effect; • Update and improve how means-tested public benefit-granting agencies obtain immigration status information from USCIS about individuals who are seeking means-tested public benefits and how means-tested public benefit-granting agencies provide information to USCIS. This proposed provision would eliminate the requirement of obtaining a duly issued subpoena before USCIS is authorized to provide a certified copy of Form I–864 or Form I–864EZ to a requesting party for use in any action to enforce the support obligation and instead allow a requesting party to submit a formal request for an Affidavit or a Contract directly to USCIS. This will strengthen the enforcement mechanism for Affidavits and Contracts, which would allow means-tested public benefits-granting agencies to recover payment for any means-tested public benefits that a sponsored alien receives during the period in which an Affidavit or Contract is enforceable; and • Revise the process for informing USCIS about judgments obtained against sponsors (for failing to meet prior support obligations as a sponsor or household member) and indigency determinations to give USCIS flexibility to determine a more efficient mechanism for information reporting, whereby USCIS would be permitted to provide a different mechanism for submitting copies of judgments and indigency determinations to ensure accuracy and efficiency.

Costs: Annualized monetized net costs (discount rate in paren- (3%) $240,314,623 RIA. thesis). (7%) $240,314,623

Annualized quantified, but un-monetized, costs ...... N/A RIA.

Qualitative (unquantified) costs ...... The proposed rule may impose some impacts and/or costs RIA. associated with the proposed provisions that a joint sponsor must execute an Affidavit in cases where a sponsor has received any means-tested public benefits within 36 months of filing the Affidavit and/or has failed to meet the support or reimbursement obligations under an existing Affidavit or Contract. There could be a reduction in the number of immigrants granted an immigration benefit in cases where the intending immigrant is unable to obtain a sponsor who can meet the new requirements under this proposed rule. The proposed rule could result in some sponsors who may intend to sponsor a family member in the future foregoing enrollment or disenrolling from a means-tested public benefits program to avoid triggering the proposed additional requirements. The proposed rule may result in an increased number of individuals with support obligations who are held accountable for the reimbursement of the cost of means-tested public benefits. Further, sponsors or household members would incur the cost of reimbursing the means-tested public benefits-granting agency and would likely incur the costs of legal representation if means- tested public benefits granting agencies choose to pursue legal action to recover the means-tested public benefits a sponsored individual received.

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TABLE 3—OMB A–4 ACCOUNTING STATEMENT ($, 2019)—Continued

Category Primary estimate Minimum estimate Maximum estimate Source citation

The proposed rule may cause the Department of State (DOS) to incur additional costs to provide adjudication services for Affidavits or Contracts. While it is difficult at this time to quantify these increased costs, DOS identified several sources of possible increased costs for these services resulting from this proposed rule such as contract modifications.

Miscellaneous Analyses/Category Effects Source Citation

Effects on state, local, and/or tribal governments ...... None.

Effects on small businesses ...... None RFA.

Effects on wages ...... None. Effects on growth ...... None.

3. Background and Purpose of the Rule immigrant according to the from benefit-granting agencies or other As discussed in the preamble, DHS is requirements of an Affidavit as well as parties enforcing the Affidavit or seeking to update the regulations at 8 the number of sponsors who have not Contract, despite the information CFR part 213a by amending sponsorship met their financial obligations and from sharing provisions in the statute and requirements to better ensure that all whom means-tested public benefits- regulations. Current DHS regulations for sponsors, as well as household members granting agencies have sought obtaining copies of Affidavits are who execute a Contract, have the means reimbursement. However, DHS does not burdensome and inefficient because to maintain income at the applicable have data on reimbursement efforts or they require a subpoena. Laws successful recoveries by benefits- income threshold and are capable of governing subpoenas vary by granting agencies. USCIS receives meeting their support obligations under jurisdiction, but subpoenas often need limited information from benefit- section 213A of the INA, 8 U.S.C. 1183a, to be issued by a court clerk or by a granting agencies or other parties 201 during the period in which the Affidavit licensed attorney, which requires enforcing the Affidavit or Contract, or the Contract is enforceable and additional time and resources. The despite the information sharing support the intended immigrant(s) at the requirements in the current regulations provisions in the statute and regulations statutorily required level. Sponsors may may have contributed to unintended and thus is unable to determine whether demonstrate that they have the means to difficulties for benefit-granting agencies the proposed rule’s benefits are likely to maintain an annual income equal to at and sponsored immigrants seeking to exceed its costs. However, the least 125 of the Federal poverty line, or hold sponsors legally responsible for Administration has identified 100 percent as applicable,199 through a their obligations based on Affidavits. enforcement of the reimbursement combination of income and/or An Affidavit is a legally enforceable requirement as a problem that needs significant assets.200 This proposed rule contract between the sponsor that fixing. Enforcing support obligations is seeks to expand the types of additional completes the Affidavit and the U.S. a priority for the Administration. Government. A sponsor must show on financial information required from DHS also is seeking to update the sponsors to further help make such the Affidavit that he or she has the provisions to allow means-tested public means to maintain income to support determinations. A more complete benefit granting agencies to more easily picture of the sponsor’s and household the intending immigrant at 125 percent obtain information from USCIS in order of the Federal Poverty Guidelines (FPG) member’s financial situation would help to seek reimbursement from a sponsor immigration officers and immigration based on the sponsor’s household size, when the sponsored immigrant has or 100 percent of the FPG for an judges determine whether the sponsor received means-tested public benefits. can meet the requirements of section individual who is on active duty (other Most family-based immigrants pursuant than active duty for training) in the 213A of the Act, 8 U.S.C. 1183a, to section 212(a)(4)(C) of the Act, 8 particularly whether the sponsor has Armed Forces of the United States and U.S.C. 1182(a)(4)(C), and some who is petitioning for his or her spouse demonstrated the means to maintain employment-based immigrants under income as required by section or child. If a sponsored immigrant pursuant to section 212(a)(4)(D) of the receives means-tested public benefits, 213A(f)(6), 8 U.S.C. 1183a(f)(6), and Act, 8 U.S.C. 1182(a)(4)(D), are required whether the sponsor and household the agency providing the means-tested to submit an Affidavit executed by the public benefit may request the sponsor member will actually fulfill his or her petitioning sponsor. This proposed support obligation to the intending repay the cost of those benefits. The change is intended to strengthen the agency can also sue the sponsor for immigrant. USCIS believes that this will enforcement mechanism for the strengthen the integrity of the failure to repay the means-tested public Affidavit so that sponsors and benefits. immigration process. household members who agree to use A petitioning sponsor must complete DHS notes that the baseline would their income and assets to support the an Affidavit at one of the following include the number of sponsors who sponsored immigrant are held points in the immigration process currently maintain support of an accountable if the sponsored immigrant ultimately receives means-tested public 199 See INA section 213A(f)(3), 8 U.S.C. 201 For example, the Federal Rules of Civil 1183a(f)(3). benefits during the period in which the Procedure permit court clerks or attorneys 200 See INA section 213A(f)(6)(A)(i)–(ii), 8 U.S.C. Affidavit or the Contract is enforceable. (authorized to practice in the issuing court) to issue 1183a(f)(6)(A)(i)-(ii). USCIS receives limited information subpoenas. See Fed. R. Civ. P. Rule 45(a)(3).

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depending on the type of immigration demonstrate eligibility for adjustment of and assets of at least the required benefit the applicant is seeking: status include: (1) Immediate relatives threshold. The petitioning sponsor (or • When the principal immigrant of U.S. citizens (spouses, unmarried substitute sponsor, if applicable), and submits a visa application with a children under 21 years of age, and the joint sponsor must each complete a consular officer abroad; parents of U.S. citizens 21 years of age Form I–864. • when the principal immigrant and older); (2) family-based preference As data are unavailable demonstrating submits an application for adjustment of immigrants (unmarried sons and that non-spouse household members are status to permanent resident status with daughters of U.S. citizens, spouses and less likely to uphold their contract USCIS; or, unmarried sons and daughters of lawful obligations, DHS cannot provide • when directed by an immigration permanent residents, married sons and examples of or other information judge in the United States. daughters of U.S. citizens, and brothers concerning enforcement involving non- If necessary, a joint sponsor must also and sisters of U.S. citizens 21 years of spouse household members. This complete an Affidavit. age and older); and (3) employment- provision reflects DHS’ policy Sponsors complete either a Form I– based preference immigrants in cases preference that intending immigrants 864 or the shorter Form I–864EZ. when a certain U.S. citizen, lawful should not rely upon a sponsor and a Sponsors may use Form I–864EZ only in permanent resident, or U.S. national potentially unlimited group of the following circumstances: The relative filed the Immigrant Petition for household members to satisfy the sponsor is the petitioner who filed the Alien Workers, Form I–140, or such requirements of INA 213A. DHS Form I–130, Form I–129F, or Form I– relative has a significant ownership welcomes public comment regarding 600, for the relative being sponsored; interest (5 percent or more) in the entity data, information, or examples that non- the relative being sponsored is the only that filed the Form I–140. However, spouse household members are less person, other than the petitioner, listed certain immigrants are exempt from the likely to uphold their contract on the petition; and the income the requirement to submit Form I–864, as obligations. sponsor is using to qualify for the are intending immigrants who have Certain classes of immigrants Affidavit is based entirely on the earned or can receive credit for 40 currently are exempt from the sponsor’s salary or pension and is qualifying quarters (credits) of work in requirement to file Form I–864 or Form shown on one or more IRS Form W–2s. the United States. I–864EZ. Based on the information Household members who agree to use Form I–864 includes a supplemental provided in an underlying form, such as their income and/or assets to financially contract, Form I–864A, which may be Form I–485, Application to Register support an intending immigrant execute filed when a sponsor’s income and Permanent Residence or Adjust Status, a Contract, along with using Form I– assets do not meet the income an officer can verify whether an alien is 864A. requirements and the sponsor’s statutorily required to file an Affidavit. The information collected on Form I– household member chooses to combine Three different agencies review an 864, Form I–864EZ, and Form I–864A is his or her resources with the income Affidavit and Contract for sufficiency, designed to ensure individuals are and/or assets of a sponsor to meet those each in a different context. USCIS qualified to be sponsors or household requirements. Currently, a separate reviews an Affidavit and Contract while members, respectively. Depending on Form I–864A must be completed for adjudicating certain applications for the form type, sponsors and household each household member whose income adjustment of status. DOS consular members must also submit certain and/or assets the sponsor is using to officers review Affidavits and Contracts required evidence with the form. For meet the income requirements. The as part of the immigrant visa application example, sponsors must provide proof Form I–864A must be submitted with process. An alien seeking an immigrant they are a U.S. citizen, a U.S. national, Form I–864. In addition, Form I–864A visa in a classification where an or a lawful permanent resident. All serves as a contractual agreement Affidavit is required must submit an sponsors and household members must between the sponsor and household Affidavit that complies with the terms currently submit a copy of their Federal member that, along with the sponsor, and conditions established by the income tax return, including supporting the household member is responsible Secretary of Homeland Security. 22 CFR documents, for the most recent tax year, for the support obligations. 40.41(a)(7). Immigration Courts, which or provide evidence demonstrating why In cases where the petitioning sponsor are part of the U.S. Department of they were not required to file a Federal or substitute sponsor cannot meet the Justice (DOJ) Executive Office for tax return for that year. income requirements by him or herself, Immigration Review (EOIR), may review If an Affidavit is deemed insufficient an individual applying to adjust status Affidavits and Contracts in the context because the sponsor has not may also meet the affidavit of support of an alien in removal proceedings who demonstrated that he or she has the requirement by obtaining a joint sponsor is seeking adjustment of status as a form means to maintain the required income who is willing to accept joint and of relief from removal, or when level, the intending immigrant will be several liability with the petitioning otherwise adjudicating an Affidavit or considered inadmissible based on the sponsor or substitute sponsor as to the Contract filed in connection with a public charge ground under section obligation to provide support to the public charge ground of inadmissibility 212(a)(4) of the Act, 8 U.S.C. 1182(a)(4). sponsored alien. The joint sponsor must or deportability, but this rule also does The intending immigrant will not be demonstrate income or assets that not directly revise DOJ standards or able to adjust status or obtain an independently meet the requirements to processes. immigrant visa. support the sponsored immigrant(s) as When a sponsor executes Form I–864 required under sections 213A(f)(2) and 4. Population in support of an intending immigrant, (f)(5) of the Act, 8 U.S.C. 1183a(f)(2) and The proposed rule would affect the sponsor agrees to undertake the (f)(5). The joint sponsor’s income and sponsors of most family-based support obligations as described in assets may not be combined with the sponsored immigrants and some section 213A of the Act, 8 U.S.C. 1183a. income/assets of the petitioning employment-based intending Categories of immigrants required to sponsor, substitute sponsor (if immigrants filing Form I–864 or Form I– submit Form I–864 completed by a applicable), or the sponsored immigrant, 864EZ who are required to show that petitioning sponsor in order to i.e. the joint sponsor must have income they have adequate means of financial

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support and are not likely at any time each fiscal year as documentarily accountable if sponsored immigrants to become a public charge.202 The qualified for the immigrant visa obtain means-tested public benefits. proposed rule also would affect application and required interview with Therefore, DHS estimates the household members filing Form I–864A a consular officer. DOS total receipts population of individuals who execute whose income and/or assets would be number does not include Affidavits or Form I–864 as sponsors for intending used to help the sponsor demonstrate Contracts submitted to DOS for cases immigrants. the means to maintain income. In such that were not documentarily qualified in Table 4 shows the total population in cases, a sponsor’s income and assets do the given timeframe and also does not fiscal years 2014 to 2018 that filed Form not meet the income requirements of include Affidavits or Contracts I–864 for both USCIS receipts and DOS Form I–864 and the qualifying submitted directly to consular posts receipts. The annual population of household member chooses to combine overseas, which DOS has no process of sponsors filing Form I–864 increased his or her resources with the income tracking. The number of Affidavits or from 786,495 filings in fiscal year 2014 and/or assets of a sponsor to meet the Contracts submitted to DOS annually to 1,213,367 filings in fiscal year 2016, requirements. are higher than the numbers below an increase of almost 55 percent. Filings Certain classes of aliens applying for because this data does not include the decreased to 1,110,986 in fiscal year admission or adjustment of status are forms submitted directly to consular 2018, a decrease of about 8 percent from required to submit an Affidavit executed posts overseas. Cases submitted to the fiscal year 2016. Over the 5-year period, by a sponsor in order to avoid being NVC rather than filed directly with a the population of sponsors who filed found inadmissible under section consular post overseas represent the Form I–864 ranged from a low of 212(a)(4) of the Act, 8 U.S.C. 1182(a)(4). vast majority of immigrant visa 786,495 in fiscal year 2014 to a high of When an Affidavit is submitted, a applications.203 1,213,367 in fiscal year 2016. While the contract is established between the trend in the annual number of Affidavits a. Population of Sponsors Executing sponsor and the U.S. Government to executed was increasing from fiscal year Form I–864 establish a legally enforceable obligation 2014 to 2016, the trend decreased by to support the intending immigrant With this proposed rule, DHS intends about 8 percent in fiscal year 2018. DHS financially once the intending to align sponsorship requirements with acknowledges this proposed new immigrant becomes an LPR. statutory provisions and to amend regulatory provision would likely DOS provided the estimates of the sponsorship requirements to better reduce the number of individuals who population of individuals who submit ensure a sponsor has demonstrated the would be eligible to qualify as a sponsor each Affidavit or Contract to DOS in means to maintain income to support who may execute an Affidavit and, as a conjunction with an immigrant visa intending immigrants at the statutorily result, may reduce the number of application’s pre-processing at the NVC. required level. DHS also intends to Affidavits executed using Form I–864. DOS extrapolated the data from recent ensure all sponsors and household However, DHS is unable to determine electronic caseloads for each fiscal year. members can meet the support the magnitude of the reduction in Form Legacy systems do not capture the obligations under section 213A of the I–864 filings annually at this time. number and type of Affidavits or Act, 8 U.S.C. 1183a. This proposed rule Therefore, DHS uses the estimated Contracts. Specifically, the total receipts would also strengthen enforcement of annual average total population filing number from DOS reflects the cases sent the Affidavit and the Contract to hold Form I–864 of 1,041,077 for the analysis from the NVC to consular posts during sponsors and household members in this proposed rule.

TABLE 4—TOTAL RECEIPTS FOR FORM I–864 BY USCIS AND DOS, FY 2014 TO FY 2018

USCIS form I DOS form I Fiscal year –864 receipts –864 receipts Total

2014 ...... 357,055 429,440 786,495 2015 ...... 379,921 635,467 1,015,388 2016 ...... 438,605 774,762 1,213,367 2017 ...... 495,681 583,468 1,079,149 2018 ...... 451,163 659,823 1,110,986

Total ...... 2,122,425 3,082,960 5,205,385

5-year Average ...... 424,485 616,592 1,041,077 Source: USCIS, Office of Intake and Document Production (OIDP); U.S. Department of State, Visa Office.

DHS welcomes public comments on b. Population of Household Members being used by a sponsor to qualify. our estimates of the total population Filing Form I–864A Therefore, each Form I–864A is that is required to submit an Affidavit Form I–864A is submitted as an completed and signed by two using Form I–864 showing evidence of attachment to Form I–864 and is individuals: A sponsor who is having adequate means of financial considered as supporting completing Form I–864 and a household support. documentation. A separate Form I–864A member who is promising to make his must be used for each household or her income and/or assets available to member whose income and/or assets are the sponsor to help support the

202 Employment-based preference immigrants relative has a significant ownership interest (five data related the receipts of Affidavits and Contracts must file an Affidavit only in cases when a U.S. percent or more) in the entity that filed the petition. so DHS is unable to include these numbers in the citizen, lawful permanent resident, or U.S. national 203 DOS provided the total receipts for Forms I– population. relative filed the immigrant visa petition or such 864, I–864A, and I–864EZ. DOJ does not track any

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sponsored immigrants. When both the can qualify as a household member for show the intending immigrant has sponsor and the household member sign purposes of executing a Contract using adequate means of financial support and the form, it constitutes an agreement Form I–864A. Currently, there is no is not inadmissible on the public charge that the household member is limitation on the number of household ground. Individuals who meet all of the responsible along with the sponsor for members who may execute a Form I– following criteria may file Form I– the support of the individuals named. 864A. However, DHS is proposing to 864EZ: DHS estimates the population of permit only a sponsor’s spouse or an • The individual is the person who applicants who file Form I–864A with intending immigrant with the same filed or is filing Form I–130, Form I– USCIS is approximately 42,892 principal residence as the sponsor to 129F, or Form I–600 or Form I–800, annually 204 and DOS is approximately execute Form I–864A. DHS Petition to Classify Convention Adoptee 5,932 annually,205 for a total of 48,824 acknowledges this proposed new as an Immediate Relative, for a relative annually. However, DHS does not have regulatory provision may reduce the being sponsored; receipt data for Form I–864A as USCIS number of individuals who would be • The relative being sponsored is the does not generate receipt numbers for eligible to qualify as a household only person listed on the form, other this supplemental form, which makes it member who may submit a Contract than the petitioner; and difficult to determine how many Form and, as a result, may reduce the number • The income the individual is using I–864A are submitted annually. As a of Contracts executed using Form I– to qualify is based entirely on that result, USCIS would need to manually 864A. However, DHS is unable to individual’s salary or pension and is review applicant files to obtain Form I– determine the magnitude of the reduced shown on one or more IRS Form W–2s 864A data to more accurately determine number of Form I–864A filings annually provided by the individual’s employers the number of receipts of this form. at this time. or former employers. Therefore, DHS relies on the likely DHS welcomes public comments on Table 5 shows the total population in number of Form I–864A respondents our estimates of the total population fiscal years 2014 to 2018 that filed Form estimated through periodic and ongoing that is required to execute a Contract I–864EZ with both USCIS and DOS. The information collection efforts. Such showing evidence of having adequate annual population of sponsors filing collections of information rely on a means of financial support. In addition, Form I–864EZ increased from 24,545 in combination of information USCIS DHS welcomes comments regarding the fiscal year 2014 to 36,909 in fiscal year obtains from databases, subject matter effect of the revision to the current 2016, an increase of about 26 percent. experts, and projected intakes from regulatory requirements in this Filings decreased to 31,442 in fiscal year other collections of information, which proposed rule concerning who may 2018, a decrease of about 16 percent. may have a relationship to the form for qualify as a household member for Over the 5-year period, the population which an estimate is provided. The purposes of executing a Contract using of sponsors who filed Form I–864EZ agency uses this information and/or Form I–864A. ranged from a low of 24,545 in fiscal may use other data that might not be year 2014 to a high of 36,909 in fiscal c. Population of Sponsors Filing Form I– found in an official database to guide year 2018. In addition, the average 864EZ decision-making on an estimated annual population of sponsors over 5 number of respondents as it is the best Form I–864EZ is a shorter version of fiscal years who filed Form I–864EZ was information available at this time. Form I–864 and is designed for cases 30,991. Therefore, DHS estimates the Moreover, DHS reiterates that this that meet certain criteria. Like Form I– annual average total population filing proposed rule would revise the current 864, Form I–864EZ is legally required Form I–864EZ would be 30,991 for this regulatory requirements concerning who for many family-based immigrants to proposed rule.

TABLE 5—TOTAL RECEIPTS FOR FORM I–864EZ BY USCIS AND DOS, FY 2014 TO FY 2018.

USCIS DOS Fiscal year form I–864EZ form I–864EZ Total receipts receipts

2014 ...... 10,238 14,307 24,545 2015 ...... 9,924 21,172 31,096 2016 ...... 11,097 25,812 36,909 2017 ...... 11,524 19,439 30,963 2018 ...... 9,459 21,983 31,442 Total ...... 52,242 102,713 154,955 5-year Average ...... 10,448 20,543 30,991 Source: USCIS, Office of Intake and Document Production (OIDP); U.S. Department of State, Visa Office.

DHS is proposing to revise 8 CFR more means-tested public benefits benefit within the 36 months prior to 213a.2(c)(2)(ii)(C) to require the within the 36 months prior to executing filing Form I–864EZ, he or she would be applicant to submit a Form I–864 the Form I–864EZ. See proposed 8 CFR considered unable to meet the income executed by a joint sponsor when the 213a.2(c)(2)(ii)(C)(4)(ii). If a petitioner requirements of a sponsor.206 In such petitioning sponsor has received one or has received a means-tested public cases, the petitioning sponsor would

204 Source for Form I–864A population estimate Reginfo.gov at https://www.reginfo.gov/public/do/ Forces of the United States and is petitioning for his based on USCIS receipts: See Paperwork Reduction PRAViewDocument?ref_nbr=201705-1615-004 (last or her spouse or child under section 204 of the INA Act (PRA) Affidavit of Support Under Section 213A visited June 2, 2020). does not need a joint sponsor if he or she has of the INA (Forms I–864, I–864A, I–864EZ) (OMB 205 Source: U.S. Department of State, Visa Office. received means-tested public benefits in the 36 control number 1615–0075). The PRA Supporting 206 A petitioning sponsor who is on active duty month-period before filing the Affidavit. Statement A can be found at Question 12 on (other than active duty for training) in the Armed

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still be required to complete the immigrant is statutorily required to file fiscal years 2014 to 2018. The total Affidavit, but a joint sponsor who has an Affidavit. annual receipts of Form I–865 decreased not received a means-tested public DHS estimates the population of over the period from a high of 8,055 in benefit in the past 36 months also must immigrants who must file Form I–864W fiscal year 2014 to a low of 5,354 in complete an Affidavit for the intending is approximately 98,119 annually.207 fiscal year 2017, an overall decrease of immigrant to not be found inadmissible. Due to data limitations, DHS cannot about 34 percent. In fiscal year 2018, the DHS recognizes this new requirement easily determine the number of annual total annual receipts of Form I–865 may result in fewer annual filings of filings of Form I–864W. Therefore, DHS increased to 5,536, about a 3 percent Form I–864EZ and may increase the relies on the likely number of Form I– increase compared to fiscal year 2017. number of filings of Form I–864 since 864W respondents estimated through In addition, the average number of both a sponsor needing a joint sponsor, periodic and ongoing information receipts of Form I–865 over the 5-fiscal for any reason, and the joint sponsor collection efforts. Such collections of year period was about 6,089. While the each would file an Affidavit using Form information rely on a combination of total number of Form I–865 receipts was I–864. However, DHS is unable to information DHS obtains from much greater in fiscal year 2014, the estimate the potential number of Form databases, subject matter experts, and subsequent overall trend showed much I–864EZ filers who may be required to projected intakes from other collections more moderate decline and leading to file Form I–864 with a joint sponsor due of information, which may have a an increase in filings in fiscal year 2018. to receipt of means-tested public relationship to the form for which an Preliminary data for fiscal year 2019 benefits within the 36 months prior to estimate is provided. The agency uses show an increase in Form I–865 filing filing as this information is not collected this information and/or may use other to about 6,007, an increase of almost 8 in USCIS databases. Moreover, DHS data that might not be found in an percent compared to fiscal year 2018.208 acknowledges this proposed new official database to guide decision- Therefore, since a consistent increasing regulatory provision would likely making on an estimated number of or decreasing trend cannot be observed, reduce the number of individuals who respondents as it is the best information DHS uses the total annual average would be eligible to qualify as a sponsor available at this time. DHS welcomes population filing Form I–865 of who may execute an Affidavit and, as a public comments on our estimates of the approximately 6,089 for the baseline of result, may reduce the number of total population who must file Form I– this proposed rule. Affidavits executed using Form I– 864W. 864EZ. As noted above, DHS is unable TABLE 6—TOTAL ANNUAL RECEIPTS e. Population of Filing Form I–865 to determine the magnitude of the OF FORM I–865, SPONSOR’S NOTICE reduction in Form I–864EZ filings Currently, all sponsors of immigrants OF CHANGE OF ADDRESS annually at this time. Therefore, as with in the United States who have executed the population estimate for Form I–864, an Affidavit using Form I–864 or I– Fiscal year Receipts DHS uses the estimated annual average 864EZ at any time in the past must file total population filing Form I–864EZ of Form I–865, Sponsor’s Notice of Change 2014 ...... 8,055 30,991 for the analysis of this proposed Address, to report a change of address 2015 ...... 6,049 rule. within 30 days of the change if the 2016 ...... 5,449 DHS welcomes public comments on sponsorship agreement is still in force. 2017 ...... 5,354 2018 ...... 5,536 our estimates of the total population The sponsorship agreement remains in that is required to execute an Affidavit force until the sponsored immigrant: Total ...... 30,443 using Form I–864EZ showing evidence • Becomes a U.S. citizen; of having adequate means of financial • Receives credit for 40 quarters of 5-Year Average ...... 6,089 support. In addition, DHS welcomes work; comments regarding the effect of the • Source: USCIS Office of Policy & Strategy, Departs the United States Policy Research Division search of the USCIS revision to the current regulatory permanently and either formally Computer-Linked Application and Information requirements in this proposed rule abandons lawful permanent resident System 3 (CLAIMS 3) database. concerning who may qualify to execute status (by filing Form I–407, Record of an Affidavit using Form I–864EZ. Under the proposed rule, the Abandonment of Lawful Permanent population executing Form I–864A d. Population of Filing Form I–864W Resident Status) or is formally held in would also be required to file Form I– a removal proceeding to have Certain classes of immigrants 865 to provide notice of a change of abandoned that status; address. In order to estimate the likely currently are exempt from the • In a removal proceeding, loses the requirement to file Form I–864 or Form increase in the number of Form I–865 lawful permanent resident status that filings due to the new proposed I–864EZ and therefore must file Form I– the sponsored immigrant obtained based 864W, Request for Exemption for requirement, DHS calculated the on the Form I–864; or percentage of the total annual receipts of Intending Immigrant’s Affidavit of • Becomes deceased. Support. However, DHS is proposing to Form I–865 compared to the total Table 6 shows the total annual average annual filings of Form I–864 eliminate Form I–864W and instead receipts for filings of Form I–865 during would require individuals to provide and Form I–864EZ. DHS estimates that the current total average annual filings the information previously requested on 207 Source for I–864W population: Paperwork the Form I–864W using Form I–485. Reduction Act (PRA) Affidavit of Support Under of Form I–864 and Form I–864EZ is Applicants, therefore, would not be Section 213A of the INA (Forms I–864, I–864A, I– required to file a separate Form I–864W 864EZ, I–864W) (OMB control number 1615–0075). 208 Form I–865 receipts data for fiscal year 2019 The PRA Supporting Statement A can be found at are not shown in the table as the data is apart from the Form I–485. Based on the Question 12 on Reginfo.gov at https:// information provided in the Form I–485, preliminary, but also to maintain a consistent www.reginfo.gov/public/do/ period of analysis, to the extent possible, with other _ an officer can verify whether an PRAViewDocument?ref nbr=201705-1615-004. data presented in this economic analysis.

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approximately 1,072,068.209 On average, Form I–864, Form I–864A, and Form I– to DHS regulations to establish an the annual number of filings of Form I– 864EZ, and for those who must file appropriate basis for evaluating the 865 is about 0.6 percent of the number Form I–865 to provide notice of a provisions of the proposed rule. DHS filings of Form I–864 and Form I– change of address.213 For these notes that the baseline would include 864EZ.210 DHS applies the 0.6 percent populations, DHS assumes individuals the number of sponsors who currently to the total annual average number of are dispersed throughout the various maintain support of an immigrant filings of Form I–864A of 48,824 (from occupational groups and industry according to the requirements of an Section 4.b of this analysis) to sectors of the U.S. economy. However, Affidavit as well as the number of determine how many Form I–864A the wage for all occupations ($25.72) is sponsors who have not met their filers would likely be required to file an unweighted mean hourly wage that financial obligations and from whom Form I–865 under the new provision of does not account for worker benefits. means-tested public benefits-granting the proposed rule. Based on the average DHS accounts for worker benefits when agencies have sought reimbursement. annual percentage of the number of estimating the opportunity cost of time However, DHS does not have data on individuals who filed Form I–864 and by calculating a benefits-to-wage reimbursement efforts or successful Form I–864EZ that filed Form I–865, multiplier using the most recent recoveries by benefits-granting agencies. DHS estimates there would be an Department of Labor (DOL), Bureau of As previously noted, USCIS receives average of about 293 additional annual Labor Statistics (BLS) report detailing limited information from benefit- filings of Form I–865 from the Form I– the average employer costs for employee granting agencies or other parties 864A filers under the proposed compensation for all civilian workers in enforcing the Affidavit or Contract, provision.211 Therefore, DHS estimates major occupational groups and the total annual average population industries. DHS estimates the benefits- despite the information sharing filing Form I–865 for the proposed rule to-wage multiplier is 1.46 and, provisions in the statute and would be about 6,382.212 therefore, is able to estimate the full regulations. Therefore, the costs detailed DHS welcomes public comments on opportunity cost per applicant, as part of the baseline include all our estimates of the total population including employee wages and salaries current costs associated with that is required to submit Form I–865 to and the full cost of benefits such as paid completing and filing Form I–864, Form provide notice of a change of address, leave, insurance, and retirement.214 For I–864A, Form I–864EZ, and Form I–865. including the current and proposed the individuals filing an Affidavit or As noted previously in the background populations that would be required to Contract, therefore, DHS calculates the section, the source of additional costs submit Form I–865 in the event of a average total rate of compensation as imposed by this proposed rule generally change of address. $37.55 per hour, where the mean hourly would come from increased time burden estimates for completing Form I–864, 5. Cost-Benefit Analysis wage is $25.72 per hour worked and average benefits are $11.83 per hour.215 Form I–864A, and Form I–864EZ. An DHS expects this proposed rule to additional source of costs imposed by a. Baseline Estimate of Current Costs produce quantified costs associated the proposed rule would come from the with filing an Affidavit or Contract The baseline estimate of current costs requirement to file Form I–865 to using Form I–864, Form I–864A, and is the best assessment of costs and provide notice of a change of address. Form I–864EZ; and quantified costs benefits absent the regulatory action. These costs are analyzed later in this associated with filing Form I–865 for For this proposed rule, DHS estimates economic analysis. However, DHS those who would now be required to the baseline according to current welcomes public comments or data on provide notice of a change of address. operations and requirements and individuals executing an Affidavit or a For this proposed rule, DHS uses the compares that to the estimated costs and Contract who have received means- unweighted mean hourly wage of $25.72 benefits of the provisions set forth in the tested public benefits. DHS welcomes for all occupations to estimate the proposed rule. Therefore, DHS defines public comments or references to opportunity cost of time for the the baseline by assuming ‘‘no change’’ populations in this economic analysis studies on the correlation between sponsors’ receipt of means-tested public filing an Affidavit or Contract using 213 The May 2019 national mean hourly wage across all occupations is $25.72. See Department of benefits in the past and their failure to Labor, Bureau of Labor Statistics, May 2019 209 Calculation: (Estimated population for Form I– reimburse agencies for benefits received National Occupational Employment and Wage 864) + (Estimated population for Form I–864EZ) = by immigrants they sponsor. Estimates, United States All Occupations, available 1,041,077 + 30,991 = 1,072,068. at https://www.bls.gov/oes/2019/may/oes_nat.htm. Additionally, DHS welcomes public 210 Calculation: (5-Year average total annual (last visited June 2, 2020). comments or data on enforcement receipts of Form I–865/Total average annual filings 214 The benefits-to-wage multiplier is calculated fo Form I–864 and Form I–864EZ) * 100 = (6,089/ actions by means-tested public benefit as follows: (Total Employee Compensation per 1,072,068) * 100 = 0.568 = 0.6 percent (rounded) hour)/(Wages and Salaries per hour) = $37.10/ granting agencies for Affidavits and 211 Calculation: (Estimated total average annual $25.47 = 1.457 = 1.46 (rounded). See Economic Contracts to recover payment for any number of filings of Form I–864A) * (Estimated News Release, Employer Cost for Employee means-tested public benefits that an average annual percentage of the number of Compensation (March 2020), U.S. Dept. of Labor, intending immigrant receives during the individuals who filed Form I–864 and Form I– BLS, Table 1. Employer costs per hour worked for 864EZ that filed Form I–865) = 48,824 * 0.006 = 293 employee compensation and costs as a percent of period in which an Affidavit or a (rounded) additional filings of Form I–865 under total compensation: Civilian workers, by major Contract is enforceable. the proposed rule for those who file Form I–864A. occupational and industry group. , 2020, 212 Calculation: (Estimated total annual average available at https://www.bls.gov/news.release/ Table 7 shows the estimated number of filings for Form I–865) + (Estimated archives/ecec_03192020.pdf (last viewed June 2, population and annual costs of filing additional filings of Form I–865 under the proposed 2020). Form I–864, Form I–864A, Form I– rule for those who file Form I–864A) = 6,089 + 293 215 The calculation of the weighted mean hourly 864EZ, I–864W, and Form I–865 for the = 6,382 estimated proposed total annual average wage for applicants: $25.72 per hour * 1.46 = number of filings for Form I–865. $37.5512 = $37.55 (rounded) per hour. proposed rule.

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TABLE 7—TOTAL AVERAGE ANNUAL BASELINE (CURRENT) COSTS OF THE PROPOSED RULE

Estimated average Estimated total Form annual population annual cost

Form I–864 ...... 1,041,077 $234,554,648 Opportunity Cost of Time (OCT) ...... 234,554,648 Form I–864A ...... 48,824 3,208,225 OCT ...... 3,208,225 Form I–864EZ ...... 30,991 2,909,435 OCT ...... 2,909,435 Form I–864W ...... 98,119 3,684,368 OCT ...... 3,684,368 Form I–865 ...... 6,089 57,176 OCT ...... 57,176

Total Baseline Costs ...... 244,413,852 Source: USCIS analysis.

As previously discussed, Form I–864 time burden associated with a sponsor ii. Current Baseline Cost Estimate of is required for most family-based filing Form I–864 is 6 hours per filer, Filing Form I–864A immigrants and some employment- including the time for reviewing There is also no filing fee associated based immigrants to show they have instructions, gathering the required with filing Form I–864A with USCIS.221 adequate means of financial support and documentation and information, However, DHS estimates the time are not likely at any time to become a completing Form I–864, preparing burden associated with filing Form I– public charge.216 Additionally, Form I– statements, attaching necessary 864A is 1 hour and 45 minutes (1.75 864 may be filed with Form I–864A, documentation, and submitting Form I– hours) per filer, including the time for 218 when a sponsor’s income and assets do 864. Therefore, using the average reviewing instructions, gathering the not meet the income threshold and the total rate of compensation of $37.55 per required documentation and household member chooses to combine hour, DHS estimates the opportunity information, completing the Contract, his or her resources with the income cost of time for completing and preparing statements, attaching and/or assets of a sponsor to meet the submitting Form I–864 would be necessary documentation, and 219 applicable income threshold. Some $225.30 per petitioner. DHS assumes submitting the Contract.222 Therefore, petitioning sponsors may be able to file the average rate of total compensation using the average total rate of Form I–864EZ, provided they meet used to calculate the opportunity cost of compensation of $37.55 per hour, DHS certain criteria. Moreover, certain time for Form I–864 is appropriate since estimates the opportunity cost of time classes of immigrants currently are the sponsor of an immigrant, who is for completing and submitting Form I– exempt from the requirement to file agreeing to provide financial and 864A is approximately $65.71 per Form I–864 or Form I–864EZ, but must material support, is instructed to petitioner.223 DHS assumes the average file Form I–864W. Based on the complete and submit the form. Using information provided in an underlying the estimated annual total population of 221 The Department of State (DOS) charges a $120 form, such as Form I–485, an officer can 1,041,077 individuals filing an affidavit fee per case for reviewing Affidavit of Support verify whether an alien is statutorily of support using Form I–864, DHS forms (Forms I–864, I–864A, I–864W, and/or I– estimates the opportunity cost of time 864EZ) when the form(s) is (are) filed in the United required to file an Affidavit. States and processed in the DOS National Visa associated with completing and Center (NVC). An applicant is charged only one fee, i. Current Baseline Cost Estimate of submitting Form I–864 is $234,554,648 even if there are multiple financial sponsors Filing Form I–864 annually.220 associated with a single case. Moreover, DHS notes that three different agencies review an Affidavit and There is currently no filing fee Contract for sufficiency, each in a different context. associated with filing Form I–864 with charge grounds. See 22 CFR 40.41. Immigration USCIS reviews an Affidavit and Contract while USCIS.217 However, DHS estimates the Courts, which are part of the U.S. Department of adjudicating certain applications for adjustment of Justice (DOJ) Executive Office for Immigration status. DOS consular officers also review Affidavits Review (EOIR), may review Affidavits and and Contracts as part of the immigrant visa 216 Employment-based preference immigrants Contracts in the context of an alien in removal application process, and when an Affidavit is must file Form I–864 only in cases when a U.S. proceedings who is seeking adjustment of status as required, to assess potential ineligibility on public citizen, lawful permanent resident, or U.S. national a form of relief from removal, or when otherwise charge grounds. See 22 CFR 40.41. Immigration relative filed the immigrant visa petition or such adjudicating an Affidavit or Contract filed in Courts, which are part of the U.S. Department of relative has a significant ownership interest (five connection with a public charge ground of Justice (DOJ) Executive Office for Immigration percent or more) in the entity that filed the petition. inadmissibility or deportability, but this rule does Review (EOIR), may review Affidavits and 217 The Department of State (DOS) charges a $120 not directly revise DOJ standards or processes. Contracts in the context of an alien in removal fee per case for reviewing Affidavit of Support 218 See Instructions for Affidavit of Support proceedings who is seeking adjustment of status as forms (Forms I–864, I–864A, I–864W, and/or I– Under Section 213A of the INA, Form I–864, for a form of relief from removal, or when otherwise 864EZ) when the form(s) is (are) filed in the United time burden estimate in the Paperwork Reduction adjudicating an Affidavit or Contract filed in States and processed at the DOS National Visa Act section. OMB No. 1615–0075. Expires 3/31/ connection with a public charge ground of Center (NVC). An applicant is charged only one fee, 2020. Available at https://www.uscis.gov/i-864 (last inadmissibility or deportability, but this rule does even if there are multiple financial sponsors June 2, 2020). not directly revise DOJ standards or processes. associated with a single case. Moreover, DHS notes 219 Calculation opportunity cost of time for 222 See Instructions for Contract Between Sponsor that three different agencies review an Affidavit and completing and submitting Form I–864: ($37.55 per and Household Member, Form I–864A, for time Contract for sufficiency, each in a different context. hour * 6 hours) = $225.30 per filer. burden estimate in the Paperwork Reduction Act USCIS reviews an Affidavit and Contract while 220 Calculation: (Form I–864 estimated section. OMB No. 1615–0075. Expires 3/31/2020. adjudicating certain applications for adjustment of opportunity cost of time) * (Estimated annual Available at https://www.uscis.gov/i-864a (last status. DOS consular officers also review Affidavits population filing Form I–864) = $225.30 * 1,041,077 visited June 2, 2020). and Contracts as part of the immigrant visa = $234,554,648.10 = $234,554,648 (rounded) total 223 Calculation opportunity cost of time for application process, and when an Affidavit is annual opportunity cost of time for filing Form I– completing and submitting Form I–864A: ($37.55 required, to assess potential ineligibility on public 864. Continued

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total rate of compensation used for estimates the opportunity cost of time burden associated with filing this form calculating the opportunity cost of time for completing and submitting Form I– is 60 minutes (1 hour) per petitioner, for Form I–864A since both the sponsor 864EZ is $93.88 per petitioner.227 Using including the time for reviewing and another household member agree to the estimated annual total population of instructions, gathering the required provide financial support for an 30,991 individuals filing an affidavit of documentation and information, intending immigrant. However, the support using Form I–864EZ, DHS completing the request, preparing household member also may be the estimates the opportunity cost of time statements, attaching necessary intending immigrant. Using the associated with completing and documentation, and submitting the estimated annual total population of submitting Form I–864EZ is $2,909,435 request.230 Therefore, using the average 48,824 for individuals that would file annually.228 total rate of compensation of $37.55 per Form I–864A as a household member, iv. Current Baseline Cost Estimate of hour, DHS estimates the opportunity DHS estimates the opportunity cost of Filing Form I–864W cost of time for completing and time associated with completing and submitting Form I–864W is DHS is proposing to eliminate Form submitting Form I–864A is $3,208,225 approximately $37.55 per filer.231 Using annually.224 I–864W and would instead require individuals to provide the information the estimated annual total population of iii. Current Baseline Cost Estimate of previously requested on the Form I– 98,119 for individuals who would file Filing Form I–864EZ 864W using Form I–485. Applicants, Form I–864W as a Household Member, As with Form I–864, there is no filing therefore, would not be required to file DHS estimates the opportunity cost of fee associated with filing Form I–864EZ a separate Form I–864W apart from the time associated with completing and with USCIS.225 However, DHS estimates Form I–485. Based on the information submitting Form I–864W is the time burden associated with filing provided in the Form I–485, an officer approximately $3,684,368 annually.232 Form I–864EZ is 2 hours and 30 can verify whether an immigrant is v. Current Baseline Cost Estimate of minutes (2.5 hours) per filer, including statutorily required to file an Affidavit. Filing Form I–865 the time for reviewing instructions, While the information currently gathering the required documentation collected using Form I–864W would be Form I–865 is currently identified by and information, completing the Form collected using Form I–485 under this OMB as exempt from control under the I–864EZ, preparing statements, proposed rulemaking, DHS does not Paperwork Reduction Act (PRA). attaching necessary documentation, and anticipate an increase in the fee, time However, as recently as 2015, Form I– submitting the Form I–864EZ.226 burden, or other changes in the 865 was an OMB-approved collection Therefore, using the average total rate of requirements for completing and filing for which DHS estimated the time compensation of $37.55 per hour, DHS Form I–485. burden associated with filing the form There is no filing fee associated with was 15 minutes (0.25 hours), including per hour * 1.75 hours) = $65.713 = $65.71 filing Form I–864W with USCIS.229 the time for reviewing instructions, and (rounded) per petitioner. However, DHS estimates the time completing and submitting the form.233 224 Calculation: (Form I–864A estimated opportunity cost of time) * (Estimated annual Therefore, using the average total rate of 227 population filing Form I–864A) = $65.71 * 48,824 Calculation opportunity cost of time for compensation of $37.55 per hour, DHS = $3,208,225.04 = $3,208,225 (rounded) total completing and submitting Form I–864EZ, Affidavit estimates the opportunity cost of time annual opportunity cost of time for filing Form I– of Support Under Section 213A of the INA: ($37.55 864A. per hour * 2.5 hours) = $93.875 = $93.88 per filer. for completing and submitting Form I– 225 The Department of State (DOS) charges a $120 228 Calculation: (Form I–864EZ estimated 865 is approximately be $9.39 per fee per case for reviewing Affidavit of Support opportunity cost of time) * (Estimated annual filer.234 forms (Forms I–864, I–864A, I–864W, and/or I– population filing Form I–864EZ) = $93.88 * 30,991 = $2,909,435.08 = $2,909,435 (rounded) total 864EZ) when the form(s) is (are) filed in the United 230 See Instructions for Request for Exemption for States and processed in the DOS National Visa annual opportunity cost of time for filing Form I– Intending Immigrant’s Affidavit of Support, Form I– Center (NVC). An applicant is charged only one fee, 864EZ. 864W, for time burden estimate in the Paperwork even if there are multiple financial sponsors 229 The Department of State (DOS) charges a $120 associated with a single case. Moreover, DHS notes fee per case for reviewing Affidavit of Support Reduction Act section. OMB No. 1615–0075. that three different agencies review an Affidavit and forms (Forms I–864, I–864A, I–864W, and/or I– Expires 3/31/2020. Available at https:// Contract for sufficiency, each in a different context. 864EZ) when the form(s) is (are) filed in the United www.uscis.gov/i-864w (last accessed Oct. 22, 2019). USCIS reviews an Affidavit and Contract while States and processed in the DOS National Visa 231 Calculation of opportunity cost of time for adjudicating certain applications for adjustment of Center (NVC). An applicant is charged only one fee, completing and submitting Form I–864W: ($37.55 status. DOS consular officers also review Affidavits even if there are multiple financial sponsors per hour * 1.0 hours) = $37.55. and Contracts as part of the immigrant visa associated with a single case. Moreover, DHS notes 232 Calculation: (Form I–864W estimated application process, and when an Affidavit is that three different agencies review an Affidavit and opportunity cost of time) * (Estimated annual required, to assess potential ineligibility on public Contract for sufficiency, each in a different context. population filing Form I–864W) = $37.55 * 98,119 charge grounds. See 22 CFR 40.41. Immigration USCIS reviews an Affidavit and Contract while = $3,684,368.45 = $3,684,368 (rounded) total Courts, which are part of the U.S. Department of adjudicating certain applications for adjustment of annual opportunity cost of time for filing Form I– Justice (DOJ) Executive Office for Immigration status. DOS consular officers also review Affidavits 864W. Review (EOIR), may review Affidavits and and Contracts as part of the immigrant visa 233 See Paperwork Reduction Act (PRA) Contracts in the context of an alien in removal application process, and when an Affidavit is Supporting Statement for Form I–865. The PRA proceedings who is seeking adjustment of status as required, to assess potential ineligibility on public a form of relief from removal, or when otherwise charge grounds. See 22 CFR 40.41. Immigration Supporting Statement A can be found at Question adjudicating an Affidavit or Contract filed in Courts, which are part of the U.S. Department of 12 on Reginfo.gov at https://www.reginfo.gov/ _ connection with a public charge ground of Justice (DOJ) Executive Office for Immigration public/do/PRAViewDocument?ref nbr=201209- inadmissibility or deportability, but this rule does Review (EOIR), may review Affidavits and 1615-010 (last viewed June 2, 2020). DHS notes this not directly revise DOJ standards or processes. Contracts in the context of an alien in removal is the supporting statement for Form I–865 prior to 226 See Instructions for Affidavit of Support proceedings who is seeking adjustment of status as the form becoming exempt from control under the Under Section 213A of the INA, Form I–864EZ, for a form of relief from removal, or when otherwise PRA. This supporting statement provides the best time burden estimate in the Paperwork Reduction adjudicating an Affidavit or Contract filed in estimate of the time burden to complete Form I– Act section. OMB No. 1615–0075. Expires 3/31/ connection with a public charge ground of 865. 2020. Available at https://www.uscis.gov/i-864ez inadmissibility or deportability, but this rule does 234 Calculation of opportunity cost of time for (last visited June 2, 2020). not directly revise DOJ standards or processes. completing and submitting Form I–865: ($37.55 per hour * 0.25 hours) = $9.388 = $9.39 (rounded).

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Using the estimated annual total burdens to complete Form I–864, I– 1563 to make a formal request from a population of 6,089 for individuals who 864A, and Form I–864EZ, as well as party or entity authorized to bring an would file Form I–865 to provide notice new filing requirements such as action to enforce an Affidavit or of a change of address, DHS estimates providing additional tax transcripts and Contract so that USCIS may provide a the opportunity cost of time associated credit reports and credit scores. The certified copy of the requested Affidavit with completing and submitting Form I– proposed rule would also impose new or Contract that has been executed on 865 is approximately $57,176 costs on the population executing a behalf of a sponsored immigrant for use 235 annually. Contract as household members would as evidence in any action of b. Costs of the Proposed Regulatory now be required to submit Form I–865 enforcement. Table 8 shows the Changes to provide notice of a change of address estimated annual new quantified costs The primary source of quantified new after moving. Moreover, the proposed the proposed rule would impose on costs for the proposed rule would be rule also would impose new costs on individuals filing Form I–864, I–864A, from increases in the estimated time those using the proposed new Form G– Form I–864EZ, and Form I–865.

TABLE 8—TOTAL NEW QUANTIFIED COSTS OF THE PROPOSED RULE

Estimated annual Form population Total annual cost

Form I–864 ...... 1,041,077 $226,621,641 Opportunity Cost of Time (OCT)—Additional to Baseline (Current) Costs ...... 19,551,426 Cost of obtaining credit report and credit score ...... 20,811,129 Cost to obtain Internal Revenue Service (IRS)-issued certified copies or transcripts of Federal income tax returns (3 most recent taxable years required) ...... 156,161,550 OCT to file IRS Form 4506 to obtain IRS-issued certified Federal income tax returns ...... 30,097,536 Form I–864A ...... 48,824 10,628,009 OCT—Additional to Baseline (Current) Costs ...... 916,915 Cost of obtaining credit report and credit score ...... 975,992 Cost to obtain Internal Revenue Service (IRS)-issued certified copies or transcripts of Federal income tax returns (3 most recent taxable years required) ...... 7,323,600 OCT to file IRS Form 4506 to obtain IRS-issued certified Federal income tax returns ...... 1,411,502 Form I–864EZ ...... 30,991 6,745,811 OCT—Additional to Baseline (Current) Costs ...... 581,701 Cost of obtaining credit report and credit score ...... 619,510 Cost to obtain Internal Revenue Service (IRS)-issued certified copies or transcripts of Federal income tax returns (3 most recent taxable years required) ...... 4,648,650 OCT to file IRS Form 4506 to obtain IRS-issued certified Federal income tax returns ...... 895,950 Form I–865 ...... 6,382 2,751 Expanded population subject to the requirement to file Form I–865 to provide notice of change of address ...... 2,751 Form G–1563 ...... 25 779 OCT to file ...... 779

Total New Quantified Costs of the Proposed Rule ...... 243,998,991 Source: USCIS analysis.

The proposed rule would require and information, completing the completing and filing Form I–864 would individuals completing Affidavits using request, preparing statements, attaching be $244.08 per individual based on the Form I–864 to read additional necessary documentation, and 30-minute increase in the time burden instructions and provide additional submitting the request. The 30 minutes estimate.237 Therefore, using the total information, which increases the of increased time burden to complete population estimate of 1,041,077 annual estimated time to complete the form. the form takes into account the filings for Form I–864, DHS estimates The current estimated time to complete proposed new requirement to provide the total opportunity cost of time Form I–864 is 6 hours per filer. For the USCIS with bank account information associated with completing and filing proposed rule, DHS estimates the time as well as credit reports and credit Form I–864 is approximately burden for completing Form I–864 will scores.236 Therefore, the proposed time $254,106,074 annually.238 increase by 30 minutes to account for burden to complete Form I–864 is The new costs imposed by this the additional time petitioners will estimated to be 6.5 hours per filer. proposed rule would be the difference spend on reviewing instructions, For the proposed rule, DHS estimates between the proposed estimated gathering the required documentation the opportunity cost of time for opportunity cost of time to complete

235 Calculation: (Form I–865 estimated cost of time. See Federal Deposit Insurance hour * 6.5 hours) = $244.075 = $244.08 (rounded) opportunity cost of time) * (Estimated annual Corporation (FDIC). ‘‘FDIC National Survey of per filer. population filing Form I–865) = $9.39 * 6,089 = Unbanked and Underbanked Households,’’ 238 Calculation: (Form I–864 estimated $57,175.71 = $57,176 (rounded) total annual Appendix Tables, Table A.1 Banking Status by opportunity cost of time for proposed rule) * opportunity cost of time for filing Form I–865. Household Characteristics, 2017, available at (Estimated annual population filing Form I–864) = 236 DHS notes that some low-income individuals https://www.fdic.gov/householdsurvey/2017/ may be ‘‘unbanked’’ and do not have bank accounts $244.08 * 1,041,077 = $254,106,074.16 = and/or credit reports and credit scores. Therefore, 2017appendix.pdf, (last visited June 2, 2020). $254,106,074 (rounded) proposed rule total annual such individuals would not be able to provide this 237 Calculation opportunity cost of time for estimated opportunity cost of time for filing Form information and may not incur this opportunity completing and submitting Form I–864: ($37.55 per I–864.

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Form I–864 and the current estimated who file an Affidavit will also be Using the estimated annual total opportunity cost of time to complete the required to comply with this population of 1,041,077 individuals form due to the increased time burden requirement, unless he or she is filing Form I–864, DHS estimates the estimate. As a result, DHS estimates the applying in a category exempt from the cost to obtain three tax transcripts using proposed rule would impose additional public charge inadmissibility ground. IRS Form 4506 in accordance with the annual new costs of approximately Therefore, based on the estimated proposed requirement for submitting $19,551,426 to Form I–864 filers.239 average annual population of 1,041,077, Form I–864 would be approximately In addition to the opportunity cost of DHS estimates the total annual cost $156,161,550 annually.248 time associated with completing and associated with obtaining a credit report The estimated time burden associated filing Form I–864, filers must bear the and credit score as part of the with filing IRS Form 4506 is 46 minutes cost of obtaining a credit report and requirements for filing Form I–864 (.77 hours) per filer, including learning credit score from any one of the three would be approximately $20,811,129.244 about the law or form, preparing the major credit bureaus in the United DHS is proposing a new requirement form, and copying, assembling, and States to be submitted with the that those filing Form I–864 would be sending the form to the IRS. Therefore, Affidavit.240 Consumers may obtain a required to provide IRS-issued certified using the total rate of compensation of free credit report once a year from each copies or transcripts of their Federal $37.55 per hour, DHS estimates the of the three major consumer reporting income tax returns for the 3 most recent opportunity cost of time for completing agencies (i.e., credit bureaus) under the taxable years.245 See proposed 8 CFR and submitting IRS Form 4506 would be 241 249 Fair Credit Reporting Act (FCRA). 213a.2(c)(2)(i)(A). Consistent with the $28.91 per applicant. Using the total However, consumers are not necessarily Act, DHS is proposing to clarify in the population estimate of 1,041,077 annual entitled to a free credit score, for which regulation that tax returns must be filings for Form I–864, DHS estimates consumer reporting agencies may charge certified copies issued by the IRS.246 the total opportunity cost of time 242 a fair and reasonable fee. DHS does Individuals may request certified copies associated with completing and not assume all individuals are able to from the IRS for the current tax year and submitting IRS Form 4506 would be 250 obtain a free credit report under FCRA the prior six years. DHS proposes approximately $30,097,536 annually. specifically for fulfilling the conforming edits to the regulation to be In sum, DHS estimates the total requirements of filing Form I–864 and consistent with these revisions. See proposed new cost to complete and file Form I–864 would be approximately acknowledges obtaining a credit score proposed 8 CFR 213a.2(c)(2)(i)(B), $226,621,641 annually.251 The total would be an additional cost. Therefore, (c)(2)(i)(C)(4), and (c)(2)(i)(D). Sponsors estimated annual new costs include DHS assumes each individual would currently have the option of submitting those associated with the opportunity bear the cost of obtaining a credit report tax returns for the 3 most recent tax cost of time to complete the form, and credit score from at least one of the years, but are only required to submit obtaining a credit report and credit three major credit bureaus. DHS tax returns for the most recent tax score, obtaining IRS-issued certified estimates the cost of obtaining a credit year.247 copies or transcripts of Federal income report and credit score is $19.99 per A transcript summarizes return applicant, as this is the maximum tax returns for the 3 most recent taxable information and includes Adjusted years using IRS Form 4506, and the amount the three major credit bureaus Gross Income (AGI). They are available charge.243 DHS notes all individuals opportunity cost of time to file IRS Form for the most current tax year after the 4506 for the total population estimate of IRS has processed the return. IRS- 239 Calculation of estimated new costs for 1,041,077 annual filings for Form I–864. completing Form I–864: Proposed rule estimate of certified copies of a tax return are The current estimated time to opportunity cost of time to complete Form I–864 available for the current tax year and as complete Form I–864A is 1 hour and 45 ($254,106,074)—Current estimate of opportunity far back as six years. The fee per copy minutes (1.75 hours) per filer.252 For the cost of time to complete Form I–864 ($234,554,648) for each return requested is $50. = $19,551,426 estimated annual new costs of the proposed rule, DHS estimates the time proposed rule. Individuals requesting IRS-certified 240 The three major credit bureaus are Equifax, copies of a tax return must complete 248 Calculation: (Cost per IRS-certified tax Experian, and TransUnion. Each of these bureaus is and mail IRS Form 4506 to the transcript) * (Proposed number of transcripts a publicly-traded, for-profit company that is not appropriate IRS office listed on the required [3]) * (Estimated annual population filing owned by the Federal Government. DHS notes that form. Form I–864) = $50 * 3 * 1,041,077 = $156,161,550 there may be differences in the information total proposed cost to obtain IRS-certified tax contained in the credit reports from each of the transcripts for filing Form I–864. three major credit bureaus since one credit bureau TransUnion—$11.50, available at https:// 249 Calculation of opportunity cost of time to file may have unique information on a consumer that disclosure.transunion.com/dc/disclosure/ IRS Form 4506 for those filing Form I–864: ($37.55 is not captured by the other credit bureaus. disclosure.jsp (last visited Nov. 7, 2019). per hour * .77 hours) = $28.914 = $28.91 (rounded) 241 See Fair Credit Reporting Act (FCRA), Section 244 Calculation: (Estimated cost for credit score per filer. 612, Charges for Certain Disclosures. 15 U.S.C. and credit report) * (Estimated annual population 250 Calculation: (Estimated opportunity cost of 1681j, available at https://www.consumer.ftc.gov/ filing Form I–864) = $19.99 * 1,041,077 = time for IRS Form 4506) * (Estimated annual articles/pdf-0111-fair-credit-reporting-act.pdf (last $20,811,129.23 = $20,811,129 (rounded) annual population filing Form I–864) = $28.91 * 1,041,077 visited June 2, 2020). estimated costs for obtaining a credit report and = $30,097,536.07 = $30,097,536 (rounded) annual 242 See FCRA, Section 609(f)(8), Disclosures to credit score as part of the requirements for filing opportunity cost of time for filing IRS Form 4506 Consumers, Disclosure of Credit Scores. 15 U.S.C. Form I–864. for those filing Form I–864. 1681g, available at https://www.consumer.ftc.gov/ 245 A tax transcript summarizes return 251 Calculation: $19,551,426 (Opportunity cost of articles/pdf-0111-fair-credit-reporting-act.pdf (last information and they are available for the most time to complete Form I–864) + $20,811,129 (Cost visited June 2, 2020). current tax year after the IRS processes the return. of credit report and credit score) + $156,161,550 243 Each of the three major credit charge the Taxpayers can also get them for the past 3 years. (Cost to obtain Internal Revenue Service (IRS)- following prices for a credit report, including a See How to Get Tax Transcripts and Copies of Tax issued certified copies or transcripts of Federal credit score: Returns from the IRS, available at https:// income tax returns) + $30,097,536 (Opportunity Experian—$19.99, available at https:// www.irs.gov/newsroom/how-to-get-tax-transcripts- cost of time to file IRS Form 4506 to obtain IRS- www.experian.com/consumer-products/compare- and-copies-of-tax-returns-from-the-irs (last visited issued certified Federal income tax returns = credit-report-and-score-products.html (last visited June 2, 2020). $226,621,641 total proposed estimated annual cost Nov. 7, 2019); 246 See INA section 213A(f)(6)(A)(i), 8 U.S.C. to complete and file Form I–864. Equifax—$15.95, available at https:// 1183a(f)(6)(A)(i). 252 See USCIS Instructions for Form I–864A, www.equifax.com/personal/products/credit/report- 247 See INA section 213A(f)(6)(B), 8 U.S.C. Contract Between Sponsor and Household Member and-score (last visited Nov. 7, 2019); and 1183a(f)(6)(B); see also 8 CFR 213a.2(c)(2)(i)(A). available at https://www.uscis.gov/i-864a.

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burden for completing Form I–864A opportunity cost of time to complete annual total population of 48,824 will increase by 30 minutes to account Form I–864A and the current estimated individuals filing Form I–864A, DHS for the additional time petitioners will opportunity cost of time to complete the estimates the cost to obtain three tax spend on reviewing instructions, form due to the increased time burden transcripts using IRS Form 4506 in gathering the required documentation estimate. As a result, DHS estimates the accordance with the proposed and information, completing the proposed rule would impose additional requirement for submitting Form I– request, preparing statements, attaching annual new costs of $916,915 to Form 864A would be approximately necessary documentation, and I–864A filers.257 $7,323,600 annually.260 submitting the request. The 30 minutes In addition to the opportunity cost of The estimated time burden associated of increased time burden to complete time associated with completing Form with filing IRS Form 4506 is 46 minutes the form takes into account the I–864A, filers must bear the cost of (.77 hours) per filer, including learning proposed new requirement to provide obtaining a credit report and credit about the law or form, preparing the USCIS with bank account information score from any one of the three major as well as credit reports and credit credit bureaus in the United States to be form, and copying, assembling, and scores.253 Therefore, the proposed time submitted with the Contract. DHS sending the form to the IRS. Therefore, burden to complete Form I–864A is estimates the cost of obtaining a credit using the total rate of compensation of estimated to be 2 hours and 15 minutes report and credit score is $19.99 per $37.55 per hour, DHS estimates the (2.25 hours) per filer. applicant, as this is the maximum opportunity cost of time for completing For the proposed rule, DHS estimates amount the three major credit bureaus and submitting IRS Form 4506 would be 261 the opportunity cost of time for charge.258 Therefore, DHS estimates the $28.91 per filer. Using the total completing Form I–864A would be total proposed new cost to those filing population estimate of 48,824 annual $84.49 per application based on the 30- Form I–864A would be approximately filings for Form I–864A, DHS estimates minute increase in the time burden $19.99 per filer. Based on the total the total opportunity cost of time estimate.254 Therefore, using the total population estimate of 48,824 for associated with completing and population estimate of 48,824 for individuals would file Form I–864A as submitting IRS Form 4506 would be 262 individuals who would complete and a household member, DHS estimates the approximately $1,411,502 annually. submit Form I–864A as a household total annual cost associated with In sum, DHS estimates the total member,255 DHS estimates the total obtaining a credit report and credit proposed new cost to complete Form I– opportunity cost of time associated with score as part of the requirements for 864A would be approximately completing Form I–864A would be filing Form I–864A would be $10,628,009 annually.263 The total approximately $4,125,140 annually.256 $975,992.259 proposed estimated annual new costs The new costs imposed by this DHS is also proposing that those filing include those associated with the proposed rule would be the difference Form I–864A would be required to opportunity cost of time to complete the between the proposed estimated provide IRS-issued certified copies or form, obtaining a credit report and transcripts of their Federal income tax credit score, obtaining IRS-issued 253 DHS notes that some low-income individuals returns for the 3 most recent taxable certified copies or transcripts of Federal may be ‘‘unbanked’’ and do not have bank accounts and/or credit reports and credit scores. Therefore, years. See proposed 8 CFR income tax returns for the 3 most recent such individuals would not be able to provide this 213a.2(c)(2)(i)(A). The fee per copy for taxable years using IRS Form 4506, and information and may not incur this opportunity each return requested is $50. DHS the opportunity cost of time to file IRS cost of time. See Federal Deposit Insurance estimates the cost to obtain tax Form 4506 for the total population Corporation (FDIC). ‘‘FDIC National Survey of Unbanked and Underbanked Households,’’ transcripts for the 3 most recent taxable estimate of 48,824 annual filings for Appendix Tables, Table A.1 Banking Status by years using IRS Form 4506 in Form I–864A. DHS notes we are unable Household Characteristics, 2017, available at accordance with the proposed to determine the exact number filings of https://www.fdic.gov/householdsurvey/2017/ requirement for submitting Form I– 2017appendix.pdf, (last visited June 2, 2020). Form I–864A since not all individuals 254 Calculation opportunity cost of time for 864A is $150 for each individual filing filing I–864 need to file Form I–864A completing and submitting Form I–864A: ($37.55 Form I–864A. Using the estimated with a household member. Therefore, per hour * 2.25 hours) = $84.488 = $84.49 (rounded) per application. 257 Calculation of estimated new costs for 260 Calculation: (Cost per IRS-certified tax 255 DHS again notes that this proposed rule would completing Form I–864A: Proposed rule estimate of transcript) * (Proposed number of transcripts revise the current regulatory requirements opportunity cost of time to complete Form I–864A required [3]) * (Estimated annual population filing concerning who can qualify as a household member ($4,125,140)—Current estimate of opportunity cost Form I–864A) = $50 * 3 * 48,824 = $7,323,600 total for purposes of submitting and executing a Contract of time to complete Form I–864A ($3,208,225) = proposed cost to obtain IRS-certified tax transcripts using Form I–864A. Currently, there is no limitation $916,915 estimated annual new costs of the for filing Form I–864A. on the number of household members who may proposed rule. 261 execute a Form I–864A. However, DHS is proposing Calculation of opportunity cost of time to file 258 Each of the three major credit charge the IRS Form 4506 for those filing Form I–864EZ: to permit only a sponsor’s spouse or an intending following prices for a credit report, including a immigrant with the same principal residence as the ($37.55 per hour * .77 hours) = $28.914 = $28.91 credit score: sponsor to execute Form I–864A. DHS (rounded) per filer. acknowledges this proposed new regulatory Experian—$19.99, available at https:// 262 Calculation: (Estimated opportunity cost of provision would reduce the number of individuals www.experian.com/consumer-products/compare- time for IRS Form 4506) * (Estimated annual who would be eligible to qualify as a household credit-report-and-score-products.html (last visited population filing Form I–864A) = $28.91 * 48,824 member who may submit a Contract and, as a Nov. 7, 2019); = $1,411,501.84 = $1,411,502 (rounded) annual result, may reduce the number of Contracts Equifax—$15.95, available at https:// opportunity cost of time for filing IRS Form 4506 submitted using Form I–864A. However, DHS is www.equifax.com/personal/products/credit/report- for those filing Form I–864. unable to determine the magnitude of the reduced and-score (Nov. 7, 2019); and 263 Calculation: $916,915 (Opportunity cost of number of Form I–864A filings annually. Therefore, TransUnion—$11.50, available at https:// time to complete Form I–864A) + $975,992 (Cost of the estimated new costs of the proposed rule for disclosure.transunion.com/dc/disclosure/ credit report and credit score) + $7,323,600 (Cost to those filing Form I–864A are likely overstated. disclosure.jsp (last visited Nov. 7, 2019). obtain Internal Revenue Service (IRS)-issued 256 Calculation: (Form I–864A estimated 259 Calculation: (Estimated cost for credit score certified copies or transcripts of Federal income tax opportunity cost of time for proposed rule) * and credit report) * (Estimated annual population returns) + $1,411,502 (Opportunity cost of time to (Estimated annual population filing Form I–864A) filing Form I–864A) = $19.99 * 48,824 = file IRS Form 4506 to obtain IRS-issued certified = $84.49 * 48,824 = $4,125,139.76 = $4,125,140 $975,991.76 = $975,992 (rounded) annual estimated Federal income tax returns = $10,628,009 total (rounded) proposed rule total annual estimated costs for obtaining a credit report and credit score proposed estimated annual cost to complete and file opportunity cost of time for filing Form I–864A. as part of the requirements for filing Form I–864A. Form I–864.

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the costs for Form I–864A are likely to annual new costs of $581,701 to Form submitting IRS Form 4506 is be overestimated. I–864EZ filers.268 approximately $895,950 annually.272 The current estimated time to In addition to the opportunity cost of In sum, DHS estimates the total complete Form I–864EZ is 2 hours and time associated with completing Form proposed new cost to complete and file 30 minutes (2.5 hours) per filer.264 For I–864EZ, filers must bear the cost of Form I–864EZ would be approximately 273 the proposed rule, DHS estimates the obtaining a credit report and credit $6,745,811 annually. The total time burden for completing Form I– score from any one of the three major proposed estimated annual new costs include those associated with the 864EZ will increase by 30 minutes to credit bureaus in the United States to be opportunity cost of time to complete the account for the additional time submitted with the Affidavit. Therefore, form, obtaining a credit report and petitioners will spend on reviewing based on the estimated average annual credit score, obtaining IRS-issued instructions, gathering the required population of 30,991, DHS estimates the certified copies or transcripts of Federal documentation and information, total annual cost associated with income tax returns for the 3 most recent completing the request, preparing obtaining a credit report and credit taxable years using IRS Form 4506, and statements, attaching necessary score as part of the requirements for the opportunity cost of time to file IRS documentation, and submitting the filing Form I–864EZ would be Form 4506 for the total population 269 request. The 30 minutes of increased $619,510. estimate of 30,991 annual filings for time burden to complete the form takes DHS is also proposing that those filing Form I–864EZ. into account the proposed new Form I–864EZ would be required to Additionally, DHS is proposing to requirement to provide USCIS with provide IRS-issued certified copies or revise Sponsor’s Notice of Change of bank account information as well as transcripts of their Federal income tax Address (Form I–865). If the address of credit reports and credit scores.265 returns for the 3 most recent taxable a sponsor or household member (who Therefore, the proposed time burden to years. See proposed 8 CFR executed a Contract Between a Sponsor complete Form I–864EZ is estimated to 213a.2(c)(2)(i)(A). The fee per copy for and a Household Member [Form I– be 3 hours per filer. each return requested is $50. Using the 864A]) changes while the sponsor’s or For the proposed rule, DHS estimates estimated annual total population of household member’s support obligation the opportunity cost of time for 30,991 individuals filing Form I–864EZ, is in effect, the sponsor or household completing Form I–864EZ would be DHS estimates the cost to obtain three member (who executed a Contract) $112.65 per application based on the 30- tax transcripts using IRS Form 4506 in would be required to file a change of minute increase in the time burden accordance with the proposed address notice within 30 days with 266 estimate. Therefore, using the total requirement for submitting Form I– USCIS. population estimate of 30,991 864EZ is $4,648,650 annually.270 There is currently no fee to file Form applicants would file an Affidavit using I–865. In addition, Form I–865 has been Form I–864EZ, DHS estimates the total The estimated time burden associated identified as exempt from control under opportunity cost of time associated with with filing IRS Form 4506 is 46 minutes the Paperwork Reduction Act (PRA). completing Form I–864EZ would be (.77 hours) per filer, including learning However, as recently as 2015, Form I– approximately $3,491,136 annually.267 about the law or form, preparing the 865 was an OMB-approved collection form, and copying, assembling, and The new costs imposed by this for which DHS estimated the time sending the form to the IRS. Therefore, burden associated with filing the form proposed rule would be the difference using the average total rate of between the proposed estimated was 15 minutes (0.25 hours), including compensation of $37.55 per hour, DHS the time for reviewing instructions, and opportunity cost of time to complete estimates the opportunity cost of time completing and submitting the form.274 Form I–864EZ and the current estimated for completing and submitting IRS Form Therefore, using the average total rate of opportunity cost of time to complete the 4506 would be $28.91 per applicant.271 compensation of $37.55 per hour, DHS form due to the increased time burden Using the total population estimate of estimates the opportunity cost of time estimate. As a result, DHS estimates the proposed rule would impose additional 30,991 annual filings for Form I–864EZ, DHS estimates the total opportunity cost 272 Calculation: (Estimated opportunity cost of of time associated with completing and time for IRS Form 4506) * (Estimated annual 264 See USCIS Instructions for Form I–864EZ, population filing Form I–485) = $28.91 * 30,991 = Affidavit of Support Under Section 213A of the Act $895,949.81= $895,950 (rounded) annual available at https://www.uscis.gov/i-864ez (last 268 Calculation of estimated new costs for opportunity cost of time for filing IRS Form 4506 visited June 2, 2020). completing Form I–864EZ: Proposed rule estimate for those filing Form I–864EZ. 265 DHS notes that some low-income individuals of opportunity cost of time to complete Form I– 273 Calculation: $581,701 (Opportunity cost of ¥ may be ‘‘unbanked’’ and do not have bank accounts 864EZ ($3,491,136) Current estimate of time to complete Form I–864EZ) + $619,510 (Cost and/or credit reports and credit scores. Therefore, opportunity cost of time to complete Form I–864EZ of credit report and credit score) + $4,648,650 (Cost such individuals would not be able to provide this ($2,909,435) = $581,701 estimated annual new costs to obtain Internal Revenue Service (IRS)-issued information and may not incur this opportunity of the proposed rule. certified copies or transcripts of Federal income tax cost of time. See Federal Deposit Insurance 269 Calculation: (Estimated cost for credit score returns) + $895,950 (Opportunity cost of time to file Corporation (FDIC). ‘‘FDIC National Survey of and credit report) * (Estimated annual population IRS Form 4506 to obtain IRS-issued certified Unbanked and Underbanked Households,’’ filing Form I–864EZ) = $19.99 * 30,991 = Federal income tax returns) = $6,745,811 total Appendix Tables, Table A.1 Banking Status by $619,510.09 = $619,510 (rounded) annual estimated proposed estimated annual cost to complete and file Household Characteristics, 2017, available at costs for obtaining a credit report and credit score Form I–864EZ. https://www.fdic.gov/householdsurvey/2017/ as part of the requirements for filing Form I–864EZ. 274 See Paperwork Reduction Act (PRA) 2017appendix.pdf, (June 2, 2020). 270 Calculation: (Cost per IRS-certified tax Supporting Statement for Form I–865. The PRA 266 Calculation opportunity cost of time for transcript) * (Proposed number of transcripts Supporting Statement A can be found at Question completing and submitting Form I–864EZ: ($37.55 required [3]) * (Estimated annual population filing 12 on Reginfo.gov at https://www.reginfo.gov/ per hour * 3.0 hours) = $112.65 per application. Form I–864EZ) = $50 * 3 * 30,991 = $4,648,650 public/do/PRAViewDocument?ref_nbr=201209- 267 Calculation: (Form I–864EZ estimated total proposed cost to obtain IRS-certified tax 1615-010 (last viewed June 2, 2020). DHS notes this opportunity cost of time for proposed rule) * transcripts for filing Form I–864EZ. is the supporting statement for Form I–865 prior to (Estimated annual population filing Form I–864EZ) 271 Calculation of opportunity cost of time to file the form becoming exempt from control under the = $112.65 * 30,991 = $3,491,136.15 = $3,491,136 IRS Form 4506 for those filing Form I–864EZ: PRA. This supporting statement provides the best (rounded) proposed rule total annual estimated ($37.55 per hour * 0.77 hours) = $28.914 = $28.91 estimate of the time burden to complete Form I– opportunity cost of time for filing Form I–864EZ. (rounded) per applicant. 865.

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for completing and submitting Form I– hour, DHS estimates the opportunity Using the average total rate of 865 would be $9.39 per applicant.275 cost of time for completing and compensation of $37.55 per hour, DHS As part of this proposed rulemaking, submitting Form G–1563 would be estimates the amount of cost savings household members who execute a $31.17 per filer.278 While the process for that would accrue from eliminating Contract would be required to submit using the proposed Form G–1563 would Form I–864W is about $37.55 per Form I–865 in the event of a change of be new and historical data are not applicant, which equals the opportunity address. DHS estimated the current available, DHS estimates there would be cost of time for completing Form I– annual total population that would file approximately 25 formal requests to 864W.281 Form I–865 to provide notice of a USCIS for certified copies of an For the proposed rule, DHS estimates change of address is approximately Affidavit or Contract annually. the cost for completing Form I–864W is 6,089. For the proposed rule, as Therefore, DHS estimates the total cost approximately $3,684,368 annually,282 previously calculated, DHS estimates to file Form G–1563 would be based on the opportunity cost of time the total annual average number of approximately $779 annually.279 for the estimated annual total filings of Form I–865 would be Since the proposed Form G–1563 population of 98,119 for individuals approximately 6,382 annually, an would be new and historical data are who would file Form I–864W. increase of 293 filings. not available, DHS welcomes public Since immigrants filing for Therefore, using the estimated total comment and data regarding the adjustment of status using Form I–485 annual average number of Form I–865 potential number of formal requests for will no longer need to submit Form I– filings of 6,382, DHS estimates the certified copies of Affidavits or 864W to request an exemption from proposed total opportunity cost of time Contracts that have been executed on filing an Affidavit, the proposed rule associated with completing and filing behalf of a sponsored immigrant for use would produce some cost savings from Form I–865 would be approximately as evidence in any action of this population. The estimated total cost $59,927 annually.276 enforcement. savings of the proposed rule for The new costs imposed by this immigrants filing for adjustment of proposed rule would be the difference c. Cost Savings of the Proposed Regulatory Changes status who would have needed to between the proposed estimated request an exemption from filing an opportunity cost of time to complete DHS anticipates that the proposed Affidavit would be equal to the current Form I–865 and the current estimated rule would produce some cost savings estimated cost of filing Form I–864W for opportunity cost of time to complete the as DHS is proposing to eliminate Form this population. Therefore, DHS form due to the increased population I–864W for use in filing an adjustment estimates the total cost savings of the application. DHS would instead require estimate. As a result, DHS estimates the proposed rule for immigrants applying individuals to provide the information proposed rule would impose additional for adjustment of status who would previously requested on the Form I– annual new costs of approximately have needed to request an exemption $2,751 for filing Form I–865.277 864W when filing Form I–485. from filing an Affidavit would be Moreover, this proposed rule would Applicants, therefore, would not be approximately $3,684,368 annually. also impose new costs on those from a required to file Form I–864W when party or entity authorized to bring an filing Form I–485. DHS has determined d. Net Costs of the Proposed Regulatory action to enforce an Affidavit or that the information an applicant Changes Contract making a formal request using provides on Form I–485 would be The primary source of quantified new the proposed new Form G–1563 so that sufficient for an adjudications officer to costs for the proposed rule would be USCIS may provide a certified copy of be able to verify whether an immigrant from increases in the estimated time the requested Affidavit or Contract that is statutorily required to file an burdens to complete Form I–864, I– has been executed on behalf of a Affidavit. While the information 864A, and Form I–864EZ, as well as sponsored immigrant for use as currently collected using Form I–864W new filing requirements such as evidence in any action of enforcement. would be collected using Form I–485 providing additional tax transcripts and With the creation of this proposed new under this proposed rulemaking, DHS credit reports and credit scores. The form, DHS estimates the time burden does not anticipate an increase in the proposed rule would also impose new associated with filing Form G–1563 is fee, time burden, or other changes in the costs on the population executing a 50 minutes (0.83 hours) per filing to requirements for completing and filing Contract as household members would make a formal request for a certified Form I–485. copy of an Affidavit or Contract, Currently, there is no filing fee now be required to submit Form I–865 including the time for reviewing associated with filing Form I–864W. to provide notice of a change of address instructions and completing and However, DHS estimates the time after moving. DHS estimates the total submitting the form. Using the average burden associated with filing this form new costs of the proposed rule would be total rate of compensation of $37.55 per is 60 minutes (1 hour) per applicant.280 approximately $243,998,212 annually. In addition, DHS anticipates that the 275 Calculation of opportunity cost of time to file 278 Calculation of opportunity cost of time to file proposed rule would produce cost Form I–865: ($37.55 per hour * 0.25 hours) = $9.388 Form G–1563: ($37.55 per hour * 0.83 hours) = savings with the proposal to eliminate = $9.39 (rounded) per filer. $31.167 = $31.17 (rounded) per filer. Form I–864W for use in filing an 276 Calculation: (Form I–865 estimated 279 Calculation: $31.17 (cost per filer to file Form adjustment application where opportunity cost of time for proposed rule) * G–1563) * 25 (estimated annual population who individuals instead would be required (Estimated annual population filing Form I–865) = would make a formal request using Form G–1563) $9.39 * 6,382 = $59,926.98 = $59,927 (rounded) = $779.25 = $779 (rounded) annual total cost to file proposed rule total annual estimated opportunity Form G–1563. 281 Calculation opportunity cost of time for cost of time for filing Form I–865. 280 Source for I–864W time burden estimate: completing and submitting Form I–864W: ($37.55 277 Calculation of estimated new costs for Paperwork Reduction Act (PRA) Affidavit of per hour * 1.0 hours) = $37.55. completing Form I–864: Proposed rule estimate of Support Under Section 213A of the INA (Forms I– 282 Calculation: (Form I–864W estimated opportunity cost of time to complete Form I–864 864, I–864A, I–864EZ, I–864W) (OMB control opportunity cost of time) * (Estimated annual ($59,927)¥Current estimate of opportunity cost of number 1615–0075). The PRA Supporting population filing Form I–864W) = $37.55 * 98,119 time to complete Form I–865 ($57,176) = $2,751 Statement can be found at Question 12 on = $3,684,368.45 = $3,684,368 (rounded) total proposed estimated annual new costs for filing Reginfo.gov at https://www.reginfo.gov/public/do/ annual opportunity cost of time for filing Form I– Form I–865. PRAViewDocument?ref_nbr=201705-1615-004. 864W.

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to provide the information previously must comply with all of the requirement may allow for a less requested on this form when filing Form requirements of executing Form I–864. cumbersome process than obtaining a I–485. DHS estimates the total cost Moreover, it may be possible that the subpoena and it may result in an savings of the proposed rule would be proposed provision could result in some increased number of individuals with approximately $3,684,368 annually. sponsors and joint sponsors who may support obligations who are held In comparing the estimated costs and intend to sponsor a family member in accountable for the reimbursement of costs savings of the proposed rule, the the future foregoing enrollment or the cost of means-tested public benefits. estimated costs are greater than the disenrolling from a means-tested public Further, if means-tested public benefits estimated cost savings. Therefore, the benefits program to avoid triggering the granting agencies choose to pursue legal net costs of the proposed rule are proposed additional requirements. This action to recover the means-tested positive. DHS estimates the net costs of could result in additional indirect public benefits a sponsored individual the proposed rule would be impacts incurred from the change of received, those sponsors or household approximately $240,313,844 annually. behavior due to this proposed rule. The members would incur the cost of e. Qualitative Impacts of the Proposed disenrollment or foregone enrollment of reimbursing the means-tested public Regulatory Changes individuals in public benefits programs benefits-granting agency and would likely incur the costs of legal The proposed rule may impose some could reduce the transfer payments from representation. DHS welcomes public qualitative impacts and/or costs/ the Federal and state government to comment on duly issued subpoenas that transfers associated with the proposed sponsors who might otherwise receive are issued in order for USCIS to provide provisions that a joint sponsor must public benefits. a certified copy of an Affidavit to a execute an Affidavit in cases where a The proposed rule may also impose requesting party for use in any action to sponsor has received any means-tested impacts and/or costs associated with the public benefits within 36 months of proposed provisions to update and enforce the support obligation. filing the Affidavit and/or has failed to improve how means-tested public Specifically, DHS welcomes public meet the support or reimbursement benefit granting agencies obtain comment on the number of subpoenas obligations under an existing Affidavit information from USCIS about sponsors issued annually, the costs associated or Contract. While this proposed and household members who have a with obtaining a subpoena, and what requirement would better ensure that a support obligation in effect and how costs are incurred to request and obtain sponsor has demonstrated the means to means-tested public benefit granting a subpoena. maintain income at the requisite level to agencies provide information to USCIS. f. Discounted Direct Costs support that intending immigrant, the Specifically, as discussed above, the indirect impact of this proposed proposed rule seeks to eliminate the To compare costs over time, DHS provision could be a reduction in the requirement in current regulations that applied a 3 percent and a 7 percent number of immigrants granted an a duly issued subpoena be issued in discount rate to the total estimated net immigration benefit in cases where the order for USCIS to provide a certified costs associated with the proposed rule. intending immigrant is unable to submit copy of an Affidavit to a requesting Table 9 presents a summary of the a sufficient Affidavit. Additionally, the party for use in any action to enforce the quantified net costs of the proposed rule proposed provision could result in support obligation,283 284 and instead as well as the estimated total net costs increased costs to sponsors for allow requesting parties to submit a in undiscounted dollars and total costs executing Affidavits, as those who agree formal request for an Affidavit or a discounted at 3 percent and 7 percent to execute Affidavits as joint sponsors Contract to USCIS. Eliminating this rates over a 10-year period.

TABLE 9—TOTAL ESTIMATED NET COSTS OF THE PROPOSED RULE WITH TOTAL ESTIMATED NET COSTS DISCOUNTED AT 3 PERCENT AND 7 PERCENT

Total estimated annual costs and Total estimated Form Source of costs and cost savings cost savings net costs over (undiscounted) 10-year period

Form I–864 ...... —Opportunity cost of time (OCT) associated with the increased $226,621,641 $2,266,216,410 time burden for completing form;. —Obtaining credit reports/credit scores; —Obtaining IRS-issued certified Federal income tax returns; and —OCT associated with obtaining income tax returns. Form I–864A ...... —OCT associated with the increased time burden for completing 10,628,009 106,280,090 form;. —Obtaining credit reports/credit scores; —Obtaining IRS-issued certified Federal income tax returns; and —OCT associated with obtaining income tax returns. Form I–864EZ ...... —OCT associated with the increased time burden for completing 6,745,811 67,458,110 form;.

283 See 8 CFR 213a.4(a)(3). This provision address or office to which the subpoena should be regulations may have contributed to unintended indicates that upon the receipt of a duly issued sent. difficulties for benefit-granting agencies and subpoena, USCIS may provide a certified copy of 284 Current DHS regulations for obtaining copies sponsored immigrants seeking to hold sponsors an Affidavit that has been filed on behalf of a of Affidavits are burdensome and inefficient legally responsible for their obligations based on specific alien for use as evidence in any action to because they require a subpoena. Laws governing Affidavits. Similarly, current regulations for enforce an Affidavit, and may also disclose the last subpoenas vary by jurisdiction, but subpoenas often reporting judgments against sponsors and indigency known address and Social Security number of the need to be issued by a court clerk or by a licensed determination information to USCIS are confusing sponsor, substitute sponsor, or joint sponsor, but attorney, which requires additional time and as there are multiple addresses to send notifications that regulation currently does not provide an resources. The requirements in the current to, some of which are no longer current.

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TABLE 9—TOTAL ESTIMATED NET COSTS OF THE PROPOSED RULE WITH TOTAL ESTIMATED NET COSTS DISCOUNTED AT 3 PERCENT AND 7 PERCENT—Continued

Total estimated annual costs and Total estimated Form Source of costs and cost savings cost savings net costs over (undiscounted) 10-year period

—Obtaining credit reports/credit scores; —Obtaining IRS-issued certified Federal income tax returns; and —OCT associated with obtaining income tax returns. Form I–864W ...... —Cost savings for OCT associated with time burden for com- ¥3,684,368 ¥36,843,680 pleting form that is being eliminated. Form I–865 ...... —Expanded population subject to the requirement to file Form I– 2,751 27,510 865 to provide notice of change of address. Form G–1563 ...... —OCT for filing ...... 779 7,790

Total Undiscounted Net ...... 240,314,623 2,403,146,230 Costs. Total Net Costs at 3 ...... 2,049,932,479 Percent Discount Rate. Total Net Costs at 7 ...... 1,687,869,350 Percent Discount Rate. Source: USCIS analysis.

Over the first 10 years of g. Costs to the Federal Government benefit request form. DHS notes that the implementation, DHS estimates the The INA provides for the collection of proposed rule may increase USCIS’ quantified net costs of the final rule fees at a level that will ensure recovery costs associated with the adjudicating would be about $2,403,146,230 of the full costs of providing immigration benefit requests. Future (undiscounted). In addition, DHS adjudication and naturalization services adjustments to the fee schedule maybe estimates the 10-year discounted net by DHS, including administrative costs necessary to recover these additional cost of this final rule to individuals and services provided without charge to operating costs and will be determined subject to this proposed rule would be certain applicants and petitioners.285 at USCIS’ next comprehensive biennial about $2,049,932,479 at a 3 percent DHS notes USCIS establishes its fees by fee review. DHS invites public discount rate and about $1,687,869,350 assigning costs to an adjudication based comments on the potential impacts of at a 7 percent discount rate. on its relative adjudication burden and these additional operating costs. This economic analysis presents the use of USCIS resources. Fees are For most immigrant visa applications, quantified net costs of the proposed rule established at an amount that is Affidavits and Contracts are submitted based on the estimated populations that necessary to recover these assigned to the NVC. DOS charges a $120 fee to are subject to the Affidavit requirement, costs such as clerical, officers, and ensure that the Affidavit is properly managerial salaries and benefits, plus an agree to submit a Contract, and/or must completed before it is forwarded to a amount to recover unassigned overhead file a notice of a change of address. The consular post for adjudication of an (e.g., facility rent, IT equipment and immigrant visa.286 An applicant is quantified net costs of the proposed rule systems among other expenses) and include the opportunity cost of time charged only one fee in certain immigration benefits provided without a circumstances. For example, Affidavits associated with the increased time fee charge. Consequently, since USCIS burden estimate for completing Form I– from an individual concurrently immigration fees are based on resource sponsoring an immediate relative 864, Form I–864A, and Form I–864EZ; expenditures related to the benefit in the costs to obtain credit reports and spouse and child would be the same in question, USCIS uses the fee associated substance, and essentially duplicative credit scores; the cost of obtaining IRS- with an information collection as a issued certified copies or transcripts of and therefore only one fee is charged. reasonable measure of the collection’s When the Affidavits and Contracts are Federal income tax returns for the 3 costs to USCIS. Most of the forms submitted directly to a consular post most recent taxable years; the affected by this proposed rule do not overseas, no fee is charged. opportunity cost of time for filing IRS currently charge a filing fee, such as the Form 4506 to obtain IRS-issued certified Affidavit of Support forms (Form I–864, Pursuant to statute, DOS sets the fee Federal income tax returns; the Form I–864A, and Form I–864EZ) as for Affidavits and Contracts based on increased population required to submit well as Sponsor’s Notice of Change of the costs to the DOS for providing these Form I–865 to provide notice of a Address (Form I–865). DHS notes the services in order to ensure Affidavits change of address. The quantified net time necessary for USCIS to review the and Contracts are properly completed costs shown in the table also include the information submitted with each of and forwarded to a consular post for estimated cost savings for the these forms includes the time to adjudication of an immigrant visa by a opportuntity cost of time associated adjudicate the underlying benefit with filing Form I–864W, which would request. While each of these forms does 286 The fee authority is contained in 8 U.S.C. 1183a Note, added by Public Law 106–113, Div. B, to be eliminated, as well as the not charge a fee, the cost to USCIS is captured in the fee for the underlying 1000(a)(7) [Div. A, Title II, sec. 232], Nov. 29, 1999, estimated total cost for filing the 113 Stat. 1536, 1501A–425, as amended Public Law proposed new Form G–1563. 107–228, Div. A, Title II, sec. 211(b), Sept. 30, 2002, 285 See INA section 286(m), 8 U.S.C. 1356(m). 116 Stat. 1365.

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consular officer.287 DOS expects that it public comment regarding A study conducted by the U.S. Census will incur additional costs to provide reimbursement from sponsors as well Bureau examined participation in this service as a result of this proposed the frequency in which sponsors have government assistance programs from rule. While it is difficult at this time to insufficient means to reimburse 2009 to 2012.292 According to the study, quantify these increased costs, DOS benefits-granting agencies. the average monthly participation rate identified several sources of possible Moreover, the proposed rule would in one or more major means-tested increased costs for these services update and improve how means-tested assistance programs over this period resulting from this proposed rule such public benefit-granting agencies obtain was approximately 52.2 million people as contract modifications. Many of the immigration status information from in 2012, which was about 21.3 percent additional costs that DOS would incur USCIS about individuals who are of the U.S. population. In the context of under this proposed rule would seeking means-tested public benefits the proposed rule, if we applied this ultimately be factored into the fee DOS and how means-tested public benefit- percentage to the estimated total would charge to those submitting an granting agencies provide information to population of 1,072,068 executing an Affidavit or Contract when fees are USCIS. The current regulations require Affidavit using Form I–864 and Form I– revised and, if so, these costs would be a duly issued subpoena before USCIS is 864EZ, approximately 228,350 fewer borne by applicants in the form of authorized to provide a certified copy of individuals annually could execute an higher fees. Form I–864 or Form I–864EZ to a Affidavit and serve as sponsors to 293 h. Benefits of Proposed Regulatory requesting party for use in any action to intending immigrants. Changes enforce the sponsorship obligation.289 DHS requests public comments on the The proposed rule would eliminate this economic effect of the proposed DHS anticipates that the proposed requirement for a joint sponsor when rule would produce some qualitative requirement and instead allow a requesting party to submit a formal the petitioning sponsor or substitute benefits. DHS anticipates the proposed sponsor has received any means-tested rule to produce benefits by request for an Affidavit or a Contract directly to USCIS. DHS also is public benefits within 36 months of strengthening the enforcement executing an Affidavit. DHS is mechanism for Affidavits and Contracts proposing to revise the process for informing USCIS about judgments particularly interested in views and data through elimination of the subpoena that would inform us about the requirement in 8 CFR 213a.4, which obtained against sponsors and indigency determinations to give USCIS flexibility economic effect that DHS should would make it easier for means-tested consider concerning the receipt of public benefits granting agencies to to determine a more efficient mechanism for information reporting. means-tested public benefits by recover payment for any means-tested petitioning sponsors and substitute public benefits that an intending The current regulations require that copies of judgments and indigency sponsors. immigrant receives during the period in Another regulatory alternative DHS which an Affidavit or a Contract is determinations be mailed to a specific USCIS office in Washington, DC. 290 The considered was to permanently bar an enforceable.288 The changes DHS is individual who had previously proposing would hold accountable proposed rule would remove the address specified in the regulation 291 defaulted on a support obligation from sponsors and household members who executing an Affidavit. However, agree to use their income and assets to and permit USCIS to provide a different mechanism for submitting copies of because section 213A(f)(1)(D) of the Act, support an intending immigrant if an 8 U.S.C. 1183a(f)(1)(D), requires that the intending immigrant ultimately receives judgments and indigency determinations. petitioner for family-based immigrants means-tested public benefits. execute an Affidavit, DHS concluded Additionally, the proposed rule i. Regulatory Alternatives that such a policy would unreasonably would update the evidentiary restrict an individual from petitioning DHS considered various regulatory requirements for sponsors submitting an for eligible family members as permitted alternatives to a number of the Affidavit and household members by section 204 of the Act, 8 U.S.C. 1154. provisions of the proposed rule. First, submitting Contracts. The updated Instead, DHS is proposing to require a DHS considered permanently barring an evidentiary requirements would provide joint sponsor execute an Affidavit in individual who had ever received immigration officers and immigration this circumstance. judges more effective ways to determine means-tested public benefits from DHS requests public comments on the whether the sponsor has the means to executing an Affidavit. However, DHS economic effect of the proposed maintain an annual income at or above concluded such a policy would requirement for a joint sponsor if the the outlined income threshold, and unreasonably restrict an individual from petitioning sponsor or substitute whether the sponsor is able to provide petitioning for eligible family members sponsor has previously defaulted on any financial support to the intending as is permitted by section 204 of the support obligation. DHS is particularly immigrant and meet all support Act, 8 U.S.C. 1154. DHS welcomes interested in views and data that would obligations during the period an public comments or data on individuals inform us about the economic effect that Affidavit is in effect. DHS welcomes executing an Affidavit or a Contract who have received means-tested public 292 See U.S. Census Bureau, Dynamics of 287 DOS determines this fee based on the costs to benefits. DHS welcomes public Economic Well-Being: Participation in Government DOS in doing this review. comments or references to studies on Programs, 2009–2012: Who Gets Assistance? (May 288 See 8 CFR 213a.4(a)(3). This provision the correlation between sponsors’ 2015), available at https://www.census.gov/content/ indicates that upon the receipt of a duly issued receipt of means-tested public benefits dam/Census/library/publications/2015/demo/p70- subpoena, USCIS may provide a certified copy of 141.pdf (last visited June 2, 2020). an Affidavit that has been filed on behalf of a in the past and their failure to reimburse 293 Calculation: (Estimated total population specific alien for use as evidence in any action to agencies for benefits received by executing an Affidavit using Forms I–864 or I– enforce an Affidavit, and may also disclose the last immigrants they sponsor. 864EZ) * (Average monthly participation rate in one known address and Social Security number of the or more major means-tested assistance programs) = sponsor, substitute sponsor, or joint sponsor, but 1,072,068 * 21.3 percent = 228,350.484 = 228,350 that regulation currently does not provide an 289 See 8 CFR 213a.4(a)(3). (rounded) fewer individuals annually could execute address or office to which the subpoena should be 290 See 8 CFR 213a.4(c). an Affidavit and serve as sponsors to intending sent. 291 See 8 CFR 213a.4(c)(3). immigrants.

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DHS should consider regarding previous sponsor’s spouse executes a Form I– directive to establish procedures for defaults on support obligations by a 864A) obtained from employment in a data sharing, which will better ensure petitioning sponsor or substitute lawful enterprise or some other lawful that existing immigration laws are sponsor. source. See proposed 8 CFR 213a.1(f). enforced and that sponsors fulfill their DHS also considered eliminating the DHS believes that limiting household support obligations during the period of Contract entirely, and consider only the income to the income of the sponsor, enforceability. As a result of eliminating sponsor’s income and assets for the the sponsor’s spouse, and, in certain this requirement, it would be less costly, purposes of the Affidavit, which would circumstances, the intending immigrant, less burdensome, and more efficient to prevent any individual who is unable to more accurately reflects income that instead allow requesting parties to meet the applicable income threshold will be available to the sponsor to submit a formal request for an Affidavit based solely on his or her own income support the intending immigrant under or a Contract to USCIS. and assets from undertaking a support the support obligation. Moreover, DHS 6. Executive Order 13771, Reducing obligation without a joint sponsor believes there is a greater likelihood that Regulation and Controlling Regulatory agreeing to be jointly and severally the income of the sponsor’s spouse Costs liable for the sponsored immigrant. This (compared to other household members) alternative is consistent with section would actually be available to the This proposed rule is expected to be 213A(f)(6)(A) of the Act, 8 U.S.C. sponsor to support the intending an E.O. 13771 regulatory action. Details 1183a(f)(6)(A), which references only immigrant because spouses often share on the estimated costs of this proposed the income and assets of intending financial resources with each other. rule can be found in the rule’s economic immigrants and sponsors. Additionally, DHS further believes that there is a analysis. it is consistent with one of the aims of greater likelihood that the income of an B. Regulatory Flexibility Act this rule—better ensuring that sponsors intending immigrant would actually be can meet their support obligations, available to the sponsor if the intending The Regulatory Flexibility Act of 1980 insofar as the household member is not immigrant is accompanied by his or her (RFA), 5 U.S.C. 601–612, as amended by required to demonstrate the means to spouse or children because the the Small Business Regulatory maintain income at the applicable intending immigrant has a vested Enforcement Fairness Act of 1996, income threshold or that the income is interest in his or her own family’s Public Law 104–121 (March 29, 1996), actually available to the sponsor to use success and well-being in the United requires Federal agencies to consider to support the intending immigrant. In States. the potential impact of regulations on cases in which the household member DHS requests public comments on the small businesses, small governmental does not have income over the income economic effect of the proposed changes jurisdictions, and small organizations threshold, it is possible that neither the to the household income definition, during the development of their rules. sponsor nor the household member can including the proposed limitation on The term ‘‘small entities’’ comprises meet the support obligations alone, even who may execute a Contract. DHS is small businesses, not-for-profit though agreeing to be jointly and particularly interested in views and data organizations that are independently severally liable. that would inform us about the owned and operated and are not However, DHS did not want preclude economic effect that DHS should dominant in their fields, or the immigration of an intending consider regarding the definition of governmental jurisdictions with immigrant’s minor children because the household income and the availability populations of less than 50,000.295 petitioning sponsor could not use the of household income to a sponsor to This proposed rule seeks to amend its income and assets of the intending support an intending immigrant. regulations related to the Affidavit. The immigrant parent. Furthermore, DHS Finally, DHS considered maintaining proposed rule changes certain recognizes that dual income households in the regulation the requirement that requirements for the Affidavit and is are a common and accepted way for USCIS will provide a certified copy of intended to better ensure that all households to meet their needs. an Affidavit only after USCIS receives a sponsors, as well as household members Accordingly, DHS decided to retain the duly issued subpoena.294 By who execute a Contract, have the means option of the Contract, but limit the maintaining this provision, a requesting to maintain income at the applicable individuals who are eligible to execute party would be required to continue income threshold and are capable of it. navigating a burdensome and costlier meeting their support obligations under In the context of the proposed rule, process for obtaining a subpoena just to section 213A of the Act, 8 U.S.C. 1183a, the estimated annual total population of receive a copy of an Affidavit. during the period in which the Affidavit household members who execute a Additionally, the existing requirement is enforceable. This rule is also aimed at Contract by filing Form I–864A is may discourage benefit-granting strengthening the enforcement approximately 48,824. Therefore, the agencies and sponsored immigrants mechanism for the Affidavit and regulatory alternative to eliminate the from enforcing the support obligations Contract, which would allow means- Contract altogether could prevent as and/or seeking reimbursement from tested public benefits granting agencies many as approximately 48,824 those who have received public benefits to recover payment for any means-tested immigrants annually from being able to and were not eligible to receive them. public benefits that an intending obtain sponsorship through executed Consistent with Congressional intent immigrant receives during the period in Affidavits in need of support of that sponsors fulfill their support which the Affidavit or Contract is household members by executing a obligations during the period of enforceable. Contract. enforceability, DHS is proposing to This proposed rule would make Currently, any household member eliminate the subpoena requirement in changes to the process of filing an who meets the criteria set forth in the order to facilitate the initiation of Affidavit or Contract and the current household income definition repayment or reimbursement actions. requirements sponsors and household may execute a Contract. Under the This proposed change is also consistent proposed definition, household income 295 A small business is defined as any with the Presidential Memorandum’s independently owned and operated business not would only include all income of the dominant in its field that qualifies as a small sponsor and the sponsor’s spouse (if the 294 See 8 CFR 213a.4(a)(3). business per the Small Business Act, 15 U.S.C. 632.

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members must fulfill, including a relative of a U.S. citizen, U.S. national, million in 2019 based on the Consumer updating the evidentiary requirements or lawful permanent relative who owns Price Index for All Urban Consumers.297 for sponsors and household members five percent or more of that small This proposed rule does not contain submitting an Affidavit or Contract, business entity, the U.S. citizen, U.S. such a mandate. The requirements of specifying that a sponsor’s prior receipt national, or lawful permanent relative of Title II of UMRA, therefore, do not of means-tested public benefits and a the alien would also need to agree to be apply, and DHS has not prepared a sponsor’s failure to meet support that immigrant’s sponsor by submitting statement under UMRA. obligations on another executed an Affidavit using Form I–864. F. Executive Order 13132: Federalism Affidavit or Contract can impact the Therefore, this proposed rule regulates determination as to whether the sponsor individuals and individuals are not This rule will not have substantial has the means to maintain the required defined as a ‘‘small entity’’ by the RFA. direct effects on the States, on the income threshold to support the Based on the evidence presented in this relationship between the National intending immigrant, who would be RFA and throughout this preamble, DHS Government and the States, or on the considered as a household member for certifies that this rule will not have a distribution of power and purposes of submitting and executing a significant economic impact on a responsibilities among the various Contract, updating and improving how substantial number of small entities. levels of government. DHS does not means-tested public benefit-granting expect this proposed rule would impose C. Small Business Regulatory agencies obtain from and provide substantial direct compliance costs on Enforcement Fairness Act of 1996 information to USCIS, and clarifying State and local governments, or preempt which categories of aliens are exempt This proposed rule is a major rule as State law. Therefore, in accordance with from the Affidavit requirement. defined by section 804 of the Small section 6 of Executive Order 13132, it is Of the categories of immigrants where Business Regulatory Enforcement Act of determined this rule does not have a sponsor is required to submit Form I– 1996. This proposed rule likely would sufficient federalism implications to 864 for an immigrant, there may be result in an annual effect on the warrant the preparation of a federalism employment-based immigrants in cases economy of $100 million or more; a summary impact statement. where a U.S. citizen, lawful permanent major increase in costs or prices; or G. Executive Order 12988: Civil Justice resident, or U.S. national relative filed significant adverse effects on Reform the employment-based immigrant visa competition, employment, investment, petition or such relative has a productivity, innovation, or on the This rule meets the applicable significant ownership interest (five ability of United States-based standards set forth in sections 3(a) and percent or more) in the entity that filed companies to compete with foreign- 3(b)(2) of Executive Order 12988. the petition.296 In such employment- based companies in domestic and H. Paperwork Reduction Act based immigrant cases, the relative and export markets. not the entity is the sponsor (or a USCIS Form I–864 D. Congressional Review Act sponsor if the relative needs a joint Under the Paperwork Reduction Act sponsor), and submits a Form I–864. This proposed rule is a major rule as of 1995, Public Law 104–13, all agencies The entities are an avenue for such defined by 5 U.S.C. 804, also known as are required to submit to OMB, for immigrants to enter into the country, the ‘‘Congressional Review Act,’’ as review and approval, any reporting however, the entities themselves are not enacted in section 251 of the Small requirements inherent in a rule. DHS the sponsors of such intending Business Regulatory Enforcement and USCIS invite comments on the immigrants. The relative in these Fairness Act of 1996, Public Law 104– impact to the proposed collection of circumstances is the sponsor (or a 121, 110 Stat. 847, 868 et seq. information. In accordance with the sponsor if the relative needs a joint Accordingly, this rule, if enacted as a PRA, the information collection notice sponsor), and must meet the financial final rule, would be effective at least 60 is published in the Federal Register to obligations of Form I–864. In such a days after the date on which Congress obtain comments regarding the scenario where a U.S. citizen, U.S. receives a report submitted by DHS proposed edits to the information national, or lawful permanent resident under the Congressional Review Act, or collection instrument. employer who owns a small entity that 60 days after the final rule’s publication, Comments are encouraged and will be has a legitimate business need for an whichever is later. accepted until December 1, 2020. All alien worker and petitions for an submissions received must include the E. Unfunded Mandates Reform Act of immigrant relative to obtain an agency name and OMB Control Number 1995 employment-based immigrant visa would also need to agree to be that The Unfunded Mandates Reform Act 297 See U.S. Bureau of Labor Statistics, Historical Consumer Price Index for All Urban Consumers immigrant’s sponsor by submitting an of 1995 (UMRA) is intended, among (CPI–U): U.S. City Average, All Items, available at Affidavit using Form I–864. Similarly, other things, to curb the practice of https://www.bls.gov/cpi/tables/supplemental-files/ where a small business entity that has imposing unfunded Federal mandates historical-cpi-u-202003.pdf (last visited June 2, a legitimate business need for an alien on State, local, and tribal governments. 2020). worker files an employment-based Title II of UMRA requires each Federal Calculation of inflation: (1) Calculate the average monthly CPI–U for the reference year (1995) and the immigrant petition for an alien who is agency to prepare a written statement current year (2019); (2) Subtract reference year CPI– assessing the effects of any Federal U from current year CPI–U; (3) Divide the difference 296 The other categories include: (1) All mandate in a proposed or final agency of the reference year CPI–U and current year CPI– immediate relatives of U.S. citizens (spouses, rule that may directly result in a $100 U by the reference year CPI–U; (4) Multiply by 100 unmarried children under 21 years of age, and = [(Average monthly CPI–U for 2019—Average parents of U.S. citizens 21 years of age and older); million or more expenditure (adjusted monthly CPI–U for 1995)/(Average monthly CPI–U and (2) All family-based preference immigrants annually for inflation) in any one year for 1995)] * 100 = [(255.657¥1 52.383)/152.383] * (unmarried sons and daughters of U.S. citizens, by State, local, and tribal governments, 100 = (103.274/152.383) *100 = 0.6777 * 100 = spouses and unmarried sons and daughters of in the aggregate, or by the private sector. 67.77 percent = 68 percent (rounded) lawful permanent residents, married sons and Calculation of inflation-adjusted value: $100 daughters of U.S. citizens, and brothers and sisters The inflation-adjusted value of $100 million in 1995 dollars * 1.68 = $168 million in of U.S. citizens 21 years of age and older). million in 1995 is approximately $168 2019 dollars.

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1615–0075 in the body of the immigrants who are required to submit The estimated total number of submission. Comments on this Form I–864 with their application for respondents for the information information collection should address adjustment of status or an immigrant collection Form I–864 is 446,313 and one or more of the following four points: visa. A sponsor may use Form I–864EZ the estimated hour burden per response (1) Evaluate whether the collection of only if the sponsor is (1) sponsoring is 6.5 hours. The estimated total number information is necessary for the proper only one intending immigrant, and (2) of respondents for the information performance of the functions of the relying solely on income to demonstrate collection Form I–864A is 42,892 and agency, including whether the their ability to maintain the necessary the estimated hour burden per response information will have practical utility; level of income. Supporting is 2.25 hours. The estimated total (2) Evaluate the accuracy of the documentation demonstrating sponsor number of respondents for the agency’s estimate of the burden of the eligibility must be submitted with the information collection Form I–864EZ is collection of information, including the form. The form instructions list the 114,860 and the estimated hour burden validity of the methodology and relevant documentation. USCIS is per response is 3 hours. assumptions used; revising this form and accompanying (6) An estimate of the total public (3) Enhance the quality, utility, and instructions to correspond with burden (in hours) associated with the clarity of the information to be revisions related to information about a collection: The total estimated annual collected; and sponsor’s receipt of means-tested public hour burden associated with this (4) Minimize the burden of the benefits, default on prior Affidavits of collection of information is 3,342,122 collection of information on those who Support Under Section 213A of the INA hours. are to respond, including through the or Contracts Between Sponsor and (7) An estimate of the total public use of appropriate automated, Household Member, requiring 3 years of burden (in cost) associated with the electronic, mechanical, or other tax returns, requiring credit reports and collection: The estimated total annual technological collection techniques or credit scores, and changes to who can cost burden associated with this other forms of information technology, file the form. • collection of information is e.g., permitting electronic submission of Form I–864A: Primary: Individuals: $147,995,925.00. responses. Form I–864A was developed for Overview of information collection: household members who have agreed to USCIS Form I–485 (1) Type of Information Collection: use their income and assets to help a Under the Paperwork Reduction Act Revision of a Currently Approved sponsor support an intending of 1995, Public Law 104–13, all agencies Collection immigrant. Supporting documentation are required to submit to OMB, for (2) Title of the Form/Collection: demonstrating financial ability must be review and approval, any reporting • Affidavit of Support Under Section submitted with the form. The form requirements inherent in a rule. DHS 213A of the INA, Form I–864 instructions list the relevant and USCIS invite comments on the • Affidavit of Support Under Section documentation. USCIS is revising this 213A of the INA, Form I–864EZ impact to the proposed collection of form and accompanying instructions to information. In accordance with the • Contract Between Sponsor and correspond with revisions related to Household Member, Form I–864A PRA, the information collection notice which individuals can be household is published in the Federal Register to (3) Agency form number, if any, and members for Affidavit of Support Under obtain comments regarding the the applicable component of the DHS Section 213A of the INA purposes, and proposed edits to the information sponsoring the collection: Form I–864, requiring 3 years of tax returns. Form I–864EZ, and Form I–864A; • Form I–864W: USCIS is proposing collection instrument. USCIS. to eliminate the Form I–864W Comments are encouraged and will be (4) Affected public who will be asked instrument. The information from this accepted until December 1, 2020. All or required to respond, as well as a brief form will instead be collected on Form submissions received must include the abstract: I–485. agency name and OMB Control Number • Form I–864: Primary: Individuals: (5) An estimate of the total number of 1615–0023 in the body of the This form was developed for sponsors to respondents and the amount of time submission. Comments on this submit for intending immigrants who estimated for an average respondent to information collection should address are required to submit Form I–864 with respond: The Paperwork Reduction Act one or more of the following four points: their application for adjustment of requires an agency to provide an (1) Evaluate whether the collection of status or an immigrant visa. Supporting estimated number of likely respondents information is necessary for the proper documentation demonstrating sponsor for each collection of information. performance of the functions of the eligibility must be submitted with the USCIS relies on a combination of agency, including whether the form. The form instructions list the information obtained from databases, information will have practical utility; relevant documentation. USCIS is subject matter experts, and projected (2) Evaluate the accuracy of the revising this form and accompanying intakes from other collections of agency’s estimate of the burden of the instructions to correspond with information, which may have a collection of information, including the revisions related to information about a relationship to the form for which an validity of the methodology and sponsor’s receipt of means-tested public estimate is provided. The agency uses assumptions used; benefits, default on prior Affidavits of this information and/or may use other (3) Enhance the quality, utility, and Support Under Section 213A of the INA data that might not be found in an clarity of the information to be or Contracts Between Sponsor and official database to guide decision- collected; and Household Member, requiring 3 years of making on an estimated number of (4) Minimize the burden of the tax returns, requiring credit reports and respondents. Since the estimates for collection of information on those who credit scores, and changes to household purposes of PRA submissions may be are to respond, including through the members. made while official projections are still use of appropriate automated, • Form I–864EZ: Primary: in progress, it should be understood that electronic, mechanical, or other Individuals: This form was developed these estimates are subject to being technological collection techniques or for sponsors to submit for intending updated as more data become available. other forms of information technology,

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e.g., permitting electronic submission of proposed edits to the information Contracts, and will facilitate the responses. collection instrument. enforcement of the support obligations Overview of information collection: Comments are encouraged and will be and/or seeking reimbursement. (1) Type of Information Collection: accepted until December 1, 2020. All (5) An estimate of the total number of Revision of a Currently Approved submissions received must include the respondents and the amount of time Collection. agency name and OMB Control Number estimated for an average respondent to (2) Title of the Form/Collection: 1615–NEW in the body of the respond: The estimated total number of Application to Register Permanent submission. Comments on this respondents for the information Residence or Adjust Status. information collection should address collection G–1563 is 25 and the (3) Agency form number, if any, and one or more of the following four points: estimated hour burden per response is the applicable component of the DHS (1) Evaluate whether the collection of 0.833 hours. sponsoring the collection: Form I–485; information is necessary for the proper (6) An estimate of the total public Form I–485A; Form I–485J; USCIS. performance of the functions of the burden (in hours) associated with the (4) Affected public who will be asked agency, including whether the collection: The total estimated annual or required to respond, as well as a brief information will have practical utility; hour burden associated with this (2) Evaluate the accuracy of the abstract: Primary: Individuals or collection is 21 hours. agency’s estimate of the burden of the households. The information on Form I– (7) An estimate of the total public collection of information, including the 485 is used to request and determine burden (in cost) associated with the validity of the methodology and eligibility for adjustment of permanent collection: The estimated total annual assumptions used; residence status or an immigrant visa. cost burden associated with this (3) Enhance the quality, utility, and collection of information is $1,250. Supplement A is used to adjust status clarity of the information to be under section 245(i) of the Immigration collected; and I. Family Assessment and Nationality Act (Act). (4) Minimize the burden of the DHS has reviewed this proposed rule (5) An estimate of the total number of collection of information on those who in line with the requirements of section respondents and the amount of time are to respond, including through the 654 of the Treasury General estimated for an average respondent to use of appropriate automated, Appropriations Act, 1999, Public Law respond: The estimated total number of electronic, mechanical, or other 105–277. With respect to the criteria respondents for the information technological collection techniques or specified in section 654(c)(1), DHS has collection I–485 is 382,264 and the other forms of information technology, determined that the proposed rule may estimated hour burden per response is e.g., permitting electronic submission of decrease disposable income and 6.42 hours. The estimated total number responses. increase the poverty of certain families of respondents for the information Overview of information collection: and children, including U.S. citizen collection I–485, Supplement A is (1) Type of Information Collection: children. For the reasons stated 36,000 and the estimated hour burden Request for New Information Collection. elsewhere in this preamble, however, per response is 1.25 hour. The estimated (2) Title of the Form/Collection: DHS has determined that the benefits of total number of respondents for the Request for Certified Copy of Affidavit the action justify the financial impact on information collection I–485, of Support Under Section 213A of the the family. Further, the proposed action Supplement J is 28,309 and the INA or Contract Between Sponsor and modifies the sponsorship requirement of estimated hour burden per response is Household Member. demonstration of means to maintain 1 hour. The estimated total number of (3) Agency form number, if any, and income. As a result, the proposed respondents for the information the applicable component of the DHS regulatory action, if finalized, may collection of Biometrics is 305,811 and sponsoring the collection: G–1563; increase the number of aliens found the estimated hour burden per response USCIS. inadmissible under section 212(a)(4) of is 1.17 hours. (4) Affected public who will be asked the Act, 8 U.S.C. 1182(a)(4). (6) An estimate of the total public or required to respond, as well as a brief burden (in hours) associated with the abstract: Primary: Individuals or J. Executive Order 13175: Consultation collection: The total estimated annual entities. Individuals and entities who and Coordination With Indian Tribal hour burden associated with this are authorized to receive a certified Governments collection is 2,885,243 hours. copy of an Afidavit or Contract, such as This proposed rule does not have (7) An estimate of the total public when the certified copy is for use in any tribal implications under Executive burden (in cost) associated with the action to enforce an Affidait or Contract Order 13175, Consultation and collection: The estimated total annual against a sponsor or against a household Coordination with Indian Tribal cost burden associated with this member who executed a Contract, will Governments, because it would not have collection of information is complete G–1563 to request a certified a substantial direct effect on one or $131,116,552. copy of an Affidavit or Contract more Indian tribes, on the relationship pertaining to a specific alien. USCIS USCIS Form G–1563 between the Federal Government and will use the information collected on Indian tribes, or on the distribution of Under the Paperwork Reduction Act the form to determine if the requestor is power and responsibilities between the of 1995, Public Law 104–13, all agencies authorized to receive a certified copy of Federal Government and Indian tribes. are required to submit to OMB, for an Affidavit or Contract executed on review and approval, any reporting behalf of a specific alien. See Proposed K. National Environmental Policy Act requirements inherent in a rule. DHS 8 CFR 213a.4(a)(3). This information (NEPA) and USCIS invite comments on the collection will replace the requirement DHS assesses proposed actions to impact to the proposed collection of for a duly issued subpoena that is determine whether NEPA applies and information. In accordance with the currently in the regulations, which will the appropriate level of NEPA review. PRA, the information collection notice enable USCIS to more accurately and DHS Directive 023–01, Rev. 01 and DHS is published in the Federal Register to efficiently respond to requests for Instruction Manual 023–01–001–01, obtain comments regarding the certified copies of Affidavits and Rev. 01, Implementation of the National

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Environmental Policy Act, establish the also update procedural requirements for standard bodies. This proposed rule procedures DHS and its components use reporting and information sharing does not use technical standards. to comply with NEPA and the Council between authorized parties and USCIS. Therefore, we did not consider the use on Environmental Quality (CEQ) In general, the proposed amendments of voluntary consensus standards. regulations for implementing NEPA, would require a more in-depth M. Signature codified in 40 CFR parts 1500 through administrative evaluation of the 1508. The CEQ regulations allow evidence submitted as part of the The Acting Secretary of Homeland Federal agencies to establish, with CEQ applicant’s immigration benefit Security, Chad F. Wolf, having reviewed review and concurrence, categories of application by an officer when and approved this document, is actions (‘‘categorical exclusions’’) which determining whether an Affidavit would delegating the authority to electronically experience has shown do not be accepted as sufficient, and could sign this document to Chad R. Mizelle, individually or cumulatively have a result in more adjudicative findings of who is the Senior Official Performing significant effect on the human ineligibility for adjustment of status, the Duties of the General Counsel for environment and, therefore, do not due to inadmissibility based on the DHS, for purposes of publication in the require an Environmental Assessment or public charge ground. There is a high Federal Register. Environmental Impact Statement. 40 demand for immigrant visas. Even if a List of Subjects in 8 CFR Part 213a CFR 1507.3(b)(2)(ii)and 1508.4. DHS has greater number of aliens were found to established categorical exclusions in be inadmissible on the public charge Administrative practice and Appendix A of the Instruction Manual. ground, there may be some replacement procedure, Immigration, Reporting and Under DHS NEPA implementing effect from others who would, in turn, recordkeeping requirements. procedures, for an action to be be considered for the existing visas. Proposed Regulatory Amendments categorically excluded, it must satisfy DHS cannot estimate with any degree of each of the following three conditions: certainty the extent to which increased Accordingly, DHS proposes to amend (1) The entire action clearly fits within findings of inadmissibility on the public part 213a of chapter I of title 8 of the one or more of the categorical charge ground would result in fewer Code of Federal Regulations as follows: exclusions; (2) the action is not a piece individuals being admitted to the PART 213a—AFFIDAVITS OF of a larger action; and (3) no United States. DHS does not anticipate extraordinary circumstances exist that that the revised administrative SUPPORT ON BEHALF OF create the potential for a significant evaluation of Affidavits would result in IMMIGRANTS environmental impact. Instruction an increase in the number of individuals ■ 1. The authority citation for part 213a Manual, section V.B(2)(a–c). found to be eligible for adjustment of continues to read as follows: This action is the promulgation of status. Therefore, DHS foresees no proposed amendments to the existing change in any environmental effect of Authority: 8 U.S.C. 1183a; 8 CFR part 2. Affidavits of Support on Behalf of the existing 8 CFR part 213a regulations. ■ 2. Section 213a.1 is amended by: Immigrants regulations codified in 8 DHS has determined that this action ■ a. Designating the definitions as CFR part 213a. Under section 213A of clearly falls within categorical paragraphs (a) through (o); the Immigration and Nationality Act exclusions A3(a) because the proposed ■ b. Redesignating newly designated (INA), 8 U.S.C. 1183a, certain amended regulations are strictly paragraphs (a), (b), (c), (d), (e), (f), (g), immigrants are required to submit an administrative or procedural in nature (h), (i), (j), (k), (l), (m), (n), and (o) as Affidavit of Support Under Section and A3(d) because the proposed paragraphs (c), (e), (f), (g), (h), (i), (j), (k), 213A of the INA (Affidavit) executed by amendments will not change any (l), (n), (o), (p), (q), (r), and (s), a sponsor who promises to provide environmental effect of the existing 8 respectively; financial support for the sponsored CFR part 213a regulations. Furthermore, ■ c. Adding new paragraphs (a) and (b); immigrant and accepts liability for the proposed amendments are not part ■ d. Revising newly redesignated reimbursing the costs of any means- of a larger action and do not present paragraph (c); tested public benefits a sponsored extraordinary circumstances creating ■ e. Adding a new paragraph (d); immigrant receives while the Affidavit the potential for significant ■ f. Revising newly redesignated is in effect. The proposed amendments environmental impacts. Therefore, this paragraphs (e) through (i) and (k); ■ change certain requirements for the g. Adding a new paragraph (m); action is categorically excluded from ■ Affidavit and are intended to better further NEPA review. h. Revising newly redesignated ensure that all sponsors, as well as paragraph (q); and L. National Technology Transfer and ■ i. Adding paragraph (t). household members who execute a Advancement Act The additions and revisions read as Contract Between Sponsor and follows: Household Member (Contract), have the The National Technology Transfer means to maintain income at the and Advancement Act (NTTAA) (15 § 213a.1 Definitions. applicable threshold and are capable of U.S.C. 272 note) directs agencies to use * * * * * meeting their support obligations as voluntary consensus standards in their (a) Active duty means: required under section 213A of the Act, regulatory activities unless the agency (1) Full-time duty in the U.S. Armed 8 U.S.C. 1183a. The amendments would provides Congress, through OMB, with Forces, other than active duty for make changes to the following: When an an explanation of why using these training; applicant is required to submit an standards would be inconsistent with (2) Full-time duty (other than for Affidavit from a joint sponsor; who may applicable law or otherwise impractical. training purposes) as a commissioned be a household member for purposes of Voluntary consensus standards are officer of the Regular or Reserve Corps executing a Contract; the evidentiary technical standards (e.g., specifications of the Public Health Service; requirements for sponsors completing of materials, performance, design, or (3) Full-time duty as a commissioned an Affidavit and household members operation; test methods; sampling officer of the National Oceanic and completing a Contract; and who is procedures; and related management Atmospheric Administration; and considered as part of a sponsor’s systems practices) that are developed or (4) Full-time duty as a cadet or household size. The amendments would adopted by voluntary consensus midshipman at the United States

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Military Academy, United States Naval Between Sponsor and Household sponsor has claimed as dependents on Academy, United States Air Force Member. the sponsor’s Federal income tax return Academy, or the United States Coast (2) Household income does not for the most recent tax year, even if such Guard Academy. include the income of an intending individuals do not have the same (b) Active duty for training means: immigrant unless: principal residence as the sponsor, plus (1) Full-time duty in the U.S. Armed (i) The intending immigrant is either the number of aliens the sponsor has Forces performed by Reserves for the sponsor’s spouse or has the same sponsored under any other Affidavit of training purposes; principal residence as the sponsor; and Support Under Section 213A of the INA (2) Full-time duty for training (ii) The preponderance of the for whom the sponsor’s support purposes performed as a commissioned evidence shows that the intending obligation has not terminated (including officer of the Reserve Corps of the immigrant’s income results from any aliens for whom the sponsor has Public Health Service; employment in a lawful enterprise or executed an Affidavit of Support Under (3) Full-time duty as a member, cadet, some other lawful source and such Section 213A of the INA that has not yet or midshipman of the Reserve Officers employment is authorized pursuant to become effective in accordance with Training Corps while attending field 8 CFR 274a.12 and will continue to be § 213a.2(e)(1), unless the sponsor has training or practice cruises; and available to the intending immigrant either timely withdrawn the Affidavit of (4) In the case of members of the after acquiring lawful permanent Support Under Section 213A of the INA National Guard or Air National Guard of resident status. or the adjustment of status application any State, full-time duty under sections (iii) The prospect of employment in or immigrant visa application associated 316, 502, 503, 504, or 505 of title 32, the United States that has not yet with that Affidavit of Support Under United States Code. The term ‘‘active actually begun will not be sufficient to Section 213A of the INA has been duty for training’’ does not include duty meet the requirement of this paragraph denied and any appeal exhausted or performed as a temporary member of the (f)(2). waived); and Coast Guard Reserve. (3) Household income also does not (v) All aliens to be sponsored under (c) Domicile means the place where a include any income accrued or earned the current Affidavit of Support Under sponsor has his or her principal from unlawful enterprises or unlawful Section 213A of the INA, even if such residence, as defined in section activities, such as proceeds from illegal aliens do not or will not have the same 101(a)(33) of the Act, with the intention gambling or drug sales, or from means- principal residence as the sponsor, plus to maintain that residence for the tested public benefits, as defined in the number of aliens for whom the foreseeable future. paragraph (l) of this section. sponsor executed a Contract Between (d) Execute, for the purpose of this (g) Household size means the number Sponsor and Household Member for part, means signing and submitting an obtained by adding the number of whom the support obligation has not Affidavit of Support Under Section individuals specified in this paragraph terminated (including any aliens for 213A of the INA or a Contract Between (g). In calculating the sponsor’s whom the sponsor has executed a a Sponsor and Household Member on household size, each individual is only Contract Between Sponsor and the appropriate forms in accordance counted once. If the intending Household Member that has not yet with the form instructions to USCIS or immigrant’s spouse or child is a U.S. become effective in accordance with the Department of State, as appropriate. citizen or already holds the status of an § 213a.2(e)(1), unless that Contract (e) Federal poverty line means the alien lawfully admitted for permanent Between Sponsor and Household level of income in the Federal Poverty residence, then the sponsor should not Member has been timely withdrawn or Guidelines, as issued by the Secretary of include that spouse or child in the adjustment of status application or Health and Human Services in determining the total household size, immigrant visa application associated accordance with 42 U.S.C. 9902, that is unless the intending immigrant’s spouse with that Contract Between Sponsor and applicable based on the household size or child is a dependent of the sponsor, Household Member has been denied involved. For purposes of considering or is otherwise part of the sponsor’s and any appeal exhausted or waived). the Affidavit of Support Under Section household size as outlined in this (2) If a child, as defined in section 213A of the INA, DHS and Consular section. 101(b)(1) of the Act, or spouse of the Posts will use the most recent poverty (1) In all cases, the household size principal intending immigrant is an guidelines published in the Federal includes: alien who does not currently reside in Register by the U.S. Department of (i) The sponsor; the United States and who either is not Health and Human Services. These (ii) The sponsor’s spouse; seeking to immigrate at the same time guidelines are updated annually, and (iii) All of the sponsor’s children, as as, or will not seek to immigrate within DHS and Consular Posts will begin to defined in section 101(b)(1) of the Act six months of the principal intending use updated guidelines on the first day (other than a stepchild who meets the immigrant’s immigration, the sponsor of the second month after the date the requirements of section 101(b)(1)(B) of may exclude that child or spouse in guidelines are published in the Federal the Act, if the stepchild does not reside calculating the sponsor’s household Register. with the sponsor, is not claimed by the size. (f) Household income means the sponsor as a dependent for tax (h) Immigration officer, solely for income used to determine whether the purposes, and is not seeking to purposes of this part, includes a sponsor meets the minimum income immigrate based on the stepparent/ consular officer, as defined by section requirements under sections stepchild relationship), unless these 101(a)(9) of the Act, as well as an 213A(f)(1)(E), 213A(f)(3), or 213A(f)(5) children have reached the age of immigration officer, as defined in 8 CFR of the Act. majority under the law of the place of 1.2. (1) Household income includes all domicile and the sponsor did not claim (i) Income means an individual’s total income, obtained from employment in a them as dependents on the sponsor’s income (adjusted gross income for those lawful enterprise or some other lawful Federal income tax return for the most who file an Income Tax Return for source, of the sponsor and the sponsor’s recent tax year; Single Filers With No Dependents) for spouse, if the spouse is at least 18 years (iv) Any other individuals (whether purposes of the individual’s U.S. old and has executed a Contract related to the sponsor or not) whom the Federal income tax liability, including a

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joint income tax return, excluding any ■ a. Removing paragraph (a)(1)(i)(B) and based on an employment-based petition income earned or derived from unlawful redesignating paragraph (a)(1)(i)(A) as that requires an Affidavit of Support enterprises or unlawful activities, such paragraph (a)(1)(i). Under Section 213A of the INA as as proceeds from illegal gambling or ■ b. Removing paragraph (a)(1)(ii) and described in section 212(a)(4)(D) of the drug sales, or from means-tested public redesignating paragraphs (a)(1)(iii) Act; benefits, as defined in paragraph (l) of through (v) as paragraphs (a)(1)(ii) (H) Is in valid U nonimmigrant status this section. Only an individual’s through (iv). under section 101(a)(15)(U) of the Act at Federal income tax return—that is, ■ c. Revising paragraphs (a)(2)(ii), the time the alien adjusts status and neither a state or territorial income tax (c)(1)(i), (c)(2)(i)(A) through (D), maintains that status through time of return nor an income tax return filed (c)(2)(ii)(C), (c)(2)(iii)(B), and (c)(2)(v). adjudication, unless adjusting status with a foreign government—can be filed The revisions and additions read as based on an employment-based petition with an Affidavit of Support Under follows: that requires an Affidavit of Support Section 213A of the INA, or with the § 213a.2 Use of affidavit of support. Under Section 213A of the INA as Contract Between Sponsor and described in section 212(a)(4)(D) of the Household Member, unless the (a) * * * Act; (2) * * * individual had no duty to file a Federal (I) Seeks admission based on Section (ii) Paragraph (a)(1) of this section income tax return, and claims his or her 13 of Public Law 85–316 (September 11, does not apply if the intending state, territorial, or foreign taxable 1957), as amended by Public Law 97– immigrant: income is sufficient to establish the (A) Filed a visa petition on his or her 116 (, 1981); sufficiency of the Affidavit of Support own behalf pursuant to section (J) Is in valid S nonimmigrant status Under Section 213A of the INA or 204(a)(1)(A)(ii), (iii), or (iv) or section under section 101(a)(15)(S) of the Act Contract Between Sponsor and 204(a)(1)(B)(ii) or (iii) of the Act, or who and seeks to adjust status based on Household Member. seeks to accompany or follow-to-join an Section 245(j) of the Act; * * * * * immigrant who filed a visa petition on (K) Seeks admission based on the (k) Joint sponsor refers to any his or his own behalf pursuant to Amerasian Act, Public Law 97–359 individual who meets the requirements section 204(a)(1)(A)(ii), (iii), or (iv) or (October 22, 1982); of section 213A(f)(1)(A), (B), (C), and (E) section 204(a)(1)(B)(ii) or (iii) of the Act; (L) Seeks admission as an Afghan and of the Act and 8 CFR 213a.2(c)(1)(i), and (B) Seeks admission as an immigrant Iraqi interpreter, or Afghan or Iraqi who, as permitted by section on or after December 19, 1997, in a national employed by or on behalf of the 213A(f)(5)(A) of the Act, executes an category specified in paragraph (a)(2)(i) U.S. Government as described in section Affidavit of Support Under Section of this section with an immigrant visa 1059(a)(2) of the National Defense 213A of the INA in which he or she issued on the basis of an immigrant visa Authorization Act for Fiscal Year 2006 accepts joint and several liability with application filed with the Department of Public Law 109–163 (Jan. 6, 2006), as the petitioning sponsor or substitute State officer before December 19, 1997; amended, and section 602(b) of the sponsor, in any case in which the (C) Establishes, on the basis of the Afghan Allies Protection Act of 2009, petitioning sponsor’s or substitute alien’s own Social Security Public Law 111–8, title VI (Mar. 11, sponsor’s household income is not Administration record or those of his or 2009), as amended, 8 U.S.C. 1101 note, sufficient to satisfy the requirements of her spouse or parent(s), that he or she and section 1244(g) of the National section 213A of the Act. has already worked, or under section Defense Authorization Act for Fiscal Year 2008, as amended Public Law 110– * * * * * 213A(a)(3)(B) of the Act, can already be credited with, 40 qualifying quarters of 181 (Jan. 28, 2008); (m) Petitioning sponsor refers to any coverage as defined under title II of the (M) Is an alien applying for individual who meets all the Social Security Act, 42 U.S.C. 401, et adjustment of status under the Cuban requirements of section 213A(f)(1)(A) seq; Adjustment Act, Public Law 89–732 through (E) of the Act; meets the (D) Is a child admitted under section (Nov. 2, 1966), as amended, 8 U.S.C. requirements of section 213A(f)(1)(A), 211(a) of the Act and 8 CFR 211.1(b)(1); 1255 note; (B), (C), and (D) and (f)(2) of the Act; (E) Is the child of a U.S. citizen and (N) Is a Haitian applying for meets the requirements of section the child’s lawful admission for adjustment of status under section 902 213A(f)(1)(A), (B), (C), and (D) and (f)(3) permanent residence and residence in of the Haitian Refugee Immigration of the Act; meets the requirements of the United States in the U.S. citizen Fairness Act of 1998, Public Law 105– section 213A(f)(1)(A), (B), (C), (f)(4)(A) parent(s)’ legal and physical custody 277, 112 Stat. 2681 (Oct. 21, 1998), as and (f)(4)(B)(i) of the Act; or meets the will result in the child’s automatic amended, 8 U.S.C. 1255 note; requirements of section 213A(f)(1)(A), acquisition of citizenship under section (O) Is a Lautenberg parolee as (B), (C), (f)(4)(A) and (f)(4)(B)(ii) of the 320 of the Act, as amended, unless the described in section 599E of the Foreign Act. child is considered to be coming to the Operations, Export Financing, and * * * * * United States for adoption under section Related Programs Appropriations Act of (q) Sponsor refers to any individual 101(b)(1)(F) or 101(b)(1)(G) of the Act; 1990, Public Law 101–167, 103 Stat. who is a petitioning sponsor, joint (F) Is a VAWA Self-Petitioner unless 1195, title V (Nov. 21, 1989), as sponsor, or substitute sponsor, as adjusting status based on an amended, 8 U.S.C. 1255 note; defined in this part, unless otherwise employment-based petition that requires (P) Is a national of Vietnam, specified. an Affidavit of Support Under Section Cambodia, and Laos applying for adjustment of status under section 586 * * * * * 213A of the INA as described in section 212(a)(4)(D) of the Act; of Public Law 106–429 under 8 CFR (t) U.S. Armed Forces, otherwise (G) Is in valid T nonimmigrant status 245.21; known as Armed Forces of the United under section 101(a)(15)(T) of the Act at (Q) Is an alien who entered the United States, means Army, Navy, Air Force, the time the alien seeks adjustment and States prior to January 1, 1972, and who Marine Corps, and Coast Guard. maintains that status through time of meets the other conditions for being ■ 3. Section 213a.2 is amended by: adjudication, unless adjusting status granted lawful permanent residence

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under section 249 of the Act and 8 CFR (EE) Is a Liberian adjusting under the sponsor certifies under penalty of part 249 (Registry); Liberian Refugee Immigration Fairness perjury under United States law that the (R) Is an individual born in the U.S. Act, Section 7611 of the National evidence of his or her current household under diplomatic status under 8 CFR Defense Authorization Act for Fiscal income is true and correct and that each 101.3; Year 2020, Public Law 116–92 transcript or photocopy of each income (S) Is an applicant adjusting status (December 20, 2019); or tax return is a true and correct transcript who qualifies for a benefit under section (FF) Any other category of aliens not or photocopy of the return that the 1703 of the National Defense required to file an Affidavit of Support sponsor filed with the Internal Revenue Authorization Act, Public Law 108–136, Under Section 213A of the INA under Service for each taxable year. 117 Stat. 1392 (Nov. 24, 2003), 8 U.S.C. section 212(a)(4)(C) or (D) of the Act. (B) If the sponsor had no legal duty to 1151 note (posthumous benefits to * * * * * file a Federal income tax return for one surviving spouses, children, and (c) * * * or more of the 3 most recent tax years, parents); (1)(i) General. A sponsor must meet the sponsor must explain why he or she (T) Is an Amerasian under Amerasian the following requirements: had no legal duty to file a Federal Homecoming Act, Public Law 100–202 (A) Be at least 18 years of age; income tax return for each year. If the (Dec. 22, 1987); (B) Be domiciled in the United States sponsor claims he or she had no legal (U) Is a Polish and Hungarian Parolee or any territory or possession of the duty to file for any reason other than the who was paroled into the United States United States; level of the sponsor’s income for that from November 1, 1989 to December 31, (C) Be a U.S. citizen, U.S. national, or year, the initial evidence submitted with 1991 under section 646(b) of the IIRIRA, an alien who is lawfully admitted for the Affidavit of Support Under Section Public Law 104–208, Div. C, Title VI, permanent residence; 213A of the INA must also include any Subtitle D (Sept. 30, 1996), 8 U.S.C. (D) Is petitioning for the admission of evidence of the amount and source of 1255 note; the alien under section 204 of the Act; the income the sponsor claims was (V) Is an American Indian born in and exempt from taxation and a copy of the Canada determined to fall under section (E) Demonstrate the means to provisions of any statute, treaty, or 289 of the Act; maintain an annual income equal to at regulation that supports the claim he or she had no duty to file an income tax (W) Is an asylee or refugee adjusting least 125 percent of the Federal Poverty return with respect to that income. If the status under section 209 of the Act; Guidelines based on the sponsor’s sponsor had no legal obligation to file a (X) Is an employment-based household size. Federal income tax return, he or she immigrant who is not seeking admission * * * * * may submit other evidence of annual or adjustment of status based on an (2) * * * income. The fact a sponsor had no duty employment-based petition that requires (i) * * * to file a Federal income tax return does an Affidavit of Support Under Section (A) The sponsor must include with not relieve the sponsor of the duty to 213A of the INA as described in section the Affidavit of Support Under Section file an affidavit of support. 212(a)(4)(D) of the Act; 213A of the INA an Internal Revenue (C)(1) The sponsor’s ability to meet (Y) Is a Haitian adjusting status under Service-issued transcript or Internal the income requirement in this the Help Haitian Adoptees Immediately Revenue Service-transcript or Internal paragraph (c)(2)(i) will be determined to Integrate Act of 2010 (Help HAITI Revenue Service-issued certified copy of based on the sponsor’s household Act), Public Law 111–293, 124 Stat. his or her complete Federal income tax income. In demonstrating he or she has 3175 (December 9, 2010); return for the 3 most recent taxable sufficient household income, the (Z) Is a Diversity Immigrant; years (counting from the date of signing, sponsor may rely entirely on his or her (AA) Is a qualified alien described in rather than the date of filing of the individual income, if it is sufficient to section 431(c) of the Personal Affidavit of Support Under Section meet the income requirement in this Responsibility and Work Opportunity 213A of the INA). Along with the paragraph (c)(2)(i). The sponsor may Reconciliation Act of 1996, 8 U.S.C. Internal Revenue Service (IRS)-issued also rely on the income of his or her 1641(c), under section 212(a)(4)(E)(iii) of transcript or certified copy, the sponsor spouse, or any intending immigrant who the Act unless adjusting status based on must also submit as initial evidence shares the same principal residence, if an employment-based petition that copies of all schedules filed with each the spouse or intending immigrant is at requires an Affidavit of Support Under return and (if the sponsor submits least 18 years old and has completed Section 213A of the INA as described in certified copies, rather than IRS and signed a Contract Between Sponsor section 212(a)(4)(D) of the Act; transcripts of the tax return(s)) all Forms and Household Member. The spouse (BB) Is a Cuban and Haitian entrant W–2 (if the sponsor relies on income does not need to be a U.S. citizen, applying for adjustment of status under from employment) and Forms 1099 (if national, or alien lawfully admitted for section 202 of the Immigration Reform the sponsor relies on income from permanent residence in order to sign and Control Act of 1986 (IRCA), Public sources documented on Forms 1099) in Contract Between Sponsor and Law 99–603, 100 Stat. 3359 (Nov. 6, meeting the income threshold. The Household Member. 1986), as amended, 8 U.S.C. 1255a note; sponsor may also include as initial (2) Each individual who signs a (CC) Is a Nicaraguan and other Central evidence: Letter(s) evidencing his or her Contract Between Sponsor and American applying for adjustment of current employment and income, Household Member agrees, in status under sections 202(a) and section paycheck stub(s) showing earnings for consideration of the sponsor’s signing of 203 of the Nicaraguan Adjustment and the most recent six months, financial the Affidavit of Support Under Section Central American Relief Act (NACARA), statements, or other evidence of the 213A of the INA, to provide to the Public Law 105–100, 111 Stat. 2193 sponsor’s anticipated household income sponsor as much financial assistance as (Nov. 19, 1997), as amended, 8 for the year in which the intending may be necessary to enable the sponsor U.S.C.1255 note; immigrant files the application for an to maintain the intending immigrants at (DD) Is a special immigrant juvenile immigrant visa or adjustment of status. the annual income level required by as described in section 245(h) of the By executing an Affidavit of Support section 213A(a)(1)(A) of the Act, to be Act; Under Section 213A of the INA, the jointly and severally liable for any

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reimbursement obligation that the transcripts or certified copies of the tax immigrant visa or adjustment of status sponsor may incur, and to submit to the returns are true and correct transcripts will be given the greatest evidentiary personal jurisdiction of any court that or certified copies of the Federal income weight; any tax return and other has subject matter jurisdiction over a tax returns filed with the Internal information relating to the sponsor’s civil suit to enforce the contract or the Revenue Service, and that the financial history, including the affidavit of support, and understands information concerning that person’s sponsor’s credit history and credit score, that a failure to meet all sponsorship employment and income is true and will serve as evidence tending to show obligations may prevent him or her from correct. whether the sponsor is likely to be able sponsoring intending immigrants in the (D) If a sponsor or household member to maintain his or her income in the future. The sponsor, as a party to the did not file a Federal income tax return future. contract, may bring suit to enforce the for any year for which transcripts or (3) Even if the sponsor’s projected contract with the spouse. The intending certified copies must be provided, the household income for the year in which immigrants and any Federal, state, or Affidavit of Support Under Section the intending immigrant filed the local agency or private entity that 213A of the INA or Contract Between application for an immigrant visa or provides a means-tested public benefit Sponsor and Household Member will adjustment of status meets the to an intending immigrant are third not be considered sufficient to satisfy applicable income threshold, the party beneficiaries of the contract the requirements of section 213A of the Affidavit of Support Under Section between the sponsor and the spouse on Act, even if the household income 213A of the INA may be determined to whose income the sponsor relies and meets the requirements of section 213A be insufficient on the basis of the may bring an action to enforce the of the Act, unless the sponsor or sponsor’s household income based on contract in the same manner as third household member proves, by a facts that suggest that the sponsor party beneficiaries of other contracts. preponderance of the evidence, that he cannot maintain income at the income (3) If there is no spouse or child or she had no legal duty to file. If the threshold for the sponsor’s household immigrating with the intending sponsor or household member cannot size, including, but not limited to the immigrant, then there will be no need prove he or she had no legal duty to file, following: for the intending immigrant to sign a then the Affidavit of Support Under (i) Evidence of a material change in Contract Between Sponsor and Section 213A of the INA or Contract employment or income history of the Household Member, even if the sponsor Between Sponsor and Household sponsor or household member; will rely on the continuing income of Member will not be considered (ii) The number of intending the intending immigrant to meet the sufficient to satisfy the requirements of immigrants included in any Affidavit of income requirement in this paragraph section 213A of the Act until the Support Under Section 213A of the INA (c)(2)(i). If, however, the sponsor seeks sponsor or household member proves he or Contract Between Sponsor and to rely on an intending immigrant’s or she has satisfied the obligation to file Household Member that the sponsor has continuing income to establish the the Federal income tax return(s) and executed but for whom the support sponsor’s ability to support the provides transcripts or certified copies obligation has not yet become effective intending immigrant’s spouse or of the Federal income tax return(s). in accordance with paragraph (e) of this children, then the intending immigrant (ii) * * * section; and whose income is to be relied on must (C) Means to maintain annual (iii) Any other relevant facts. sign a Contract Between Sponsor and income. (1) Except as provided in this (4) Even if the sponsor’s projected Household Member. paragraph (c)(2)(ii)(C), or in paragraph household income for the year in which (4) If the sponsor relies on the income (a)(1)(v)(B) of this section, a sponsor’s the intending immigrant filed the of any individual who has signed a Affidavit of Support Under Section application for an immigrant visa or Contract Between Sponsor and 213A of the INA will be considered adjustment of status meets the Household Member, the sponsor must sufficient to satisfy the requirements of applicable income threshold, the also include with the Affidavit of section 213A of the Act and this section Affidavit of Support Under Section Support Under Section 213A of the INA if the reasonably expected household 213A of the INA will be determined to and the Contract Between Sponsor and income for the year in which the be insufficient on the basis of the Household Member, with respect to the intending immigrant filed the sponsor’s household income if: person who signed the Contract application for an immigrant visa or (i) Unless otherwise provided in this Between Sponsor and Household adjustment of status, calculated under paragraph (c)(2)(ii)(C)(4), the sponsor or Member, the initial evidence required paragraph (c)(2)(iii)(A) of this section, household member received means- under paragraph (c)(2)(i)(A) of this would equal at least 125 percent of the tested public benefits on or after [DATE section. The household member must Federal Poverty Guidelines for the 60 DAYS FROM DATE OF submit transcripts or certified copies of sponsor’s household size as defined in PUBLICATION OF THE FINAL RULE] tax returns for the same 3 most recent § 213a.1(g), under the Federal Poverty and within the 36-month period before taxable years as the sponsor (except the Guidelines in effect when the intending the Affidavit of Support Under Section household member need not submit a immigrant filed the application for an 213A of the INA was executed; or tax return for any taxable year if he or immigrant visa or for adjustment of (ii) The sponsor or household member she had no legal duty to file). If the status, except that the sponsor’s income had a judgment entered against him or sponsor had no legal duty to file a tax need only equal at least 100 percent of her at any time for failing to meet the return for a given year, the household the Federal poverty line for the support or reimbursement obligations member must nonetheless submit sponsor’s household size, if the sponsor under an existing Affidavit of Support transcripts or certified copies for that is on active duty (other than for active Under Section 213A of the INA. taxable year, unless the household duty for training) in the U.S. Armed (5) Receipt of means-tested public member also had no legal duty to file a Forces and the intending immigrant is benefits by petitioning sponsors who, at tax return. An individual who signs a the sponsor’s spouse or child. the time of receipt, are on active duty, Contract Between Sponsor and (2) The sponsor’s household income as defined in § 213a.1(a), will not be Household Member certifies, under for the year in which the intending considered when determining whether penalty of perjury, that the submitted immigrant filed the application for an the petitioning sponsor has the means to

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maintain an annual income at the the Act) for the sponsor’s household Member) must file a change of address income threshold for the petitioning size (including all immigrants notice within 30 days, in accordance sponsor’s household size. sponsored in any Affidavit of Support with instructions provided by USCIS. (iii) * * * Under Section 213A of the INA in force (2) Proof of mailing. USCIS will (B) Significant assets. The sponsor or submitted under this section). accept a photocopy of the change of may submit evidence of the sponsor’s * * * * * address form together with proof of the ownership of significant assets, such as (v) Verification of employment, form’s delivery to USCIS as evidence checking and savings accounts; stocks; income, and assets. (A) The Federal that the sponsor or household member bonds; certificates of deposit; net cash Government may pursue verification of (who executed a Contract Between a value of real estate holdings minus the any information provided on or with an Sponsor and a Household Member) has sum of all loans secured by a mortgage, Affidavit of Support Under Section complied with the requirement in trust deed, or other lien on the home; 213A of the INA or Contract Between paragraph (a)(1) of this section. annuities; securities; retirement and Sponsor and Household Member, with (3) Electronic notices. USCIS will educational accounts; and any other an employer, financial or other provide the sponsor or household assets that can easily be converted into institutions, the Internal Revenue member (who executed a Contract cash. Non-cash assets must be able to be Service, or the Social Security Between a Sponsor and a Household converted into cash within 12 months. Administration, including, but not Member) with a receipt notice for an An intending immigrant may submit limited to, information about: address change. evidence of the intending immigrant’s (1) Employment; (4) Alien sponsors and household assets as a part of the petitioning (2) Income; members. If the sponsor or household sponsor’s Affidavit of Support Under (3) Assets; or member (who executed a Contract Section 213A of the INA, even if the Between a Sponsor and a Household intending immigrant is not required to (4) Bank account(s) (including, but not limited, to bank account numbers Member) is an alien that is not sign an Contract Between Sponsor and exempted by section 263(b) of the Act, Household Member. The assets of any and routing numbers). (B) To facilitate the verification the sponsor or household member (who person who has signed a Contract executed a Contract Between a Sponsor Between Sponsor and Household process described in paragraph (c)(2)(v)(A) of this section, sponsors or and a Household Member) must still Member may also be considered in comply with the requirements of 8 CFR determining whether the assets are household members must sign and submit any necessary waiver form when 265.1. sufficient to meet the requirement of (b) Civil penalty. If the sponsor or directed to do so by the immigration this paragraph (c)(2)(iii)(B). To qualify household member (who executed a officer, immigration judge, or consular as significant assets the combined cash Contract Between a Sponsor and a officer who has jurisdiction to value of all the assets (the total value of Household Member) fails to give notice adjudicate the case to which the the assets less any offsetting liabilities) in accordance with paragraph (a) of this Affidavit of Support Under Section must be at least: section, DHS may impose on the 213A of the INA or Contract Between (1) If the intending immigrant is the sponsor or household member (who Sponsor and Household Member relates. spouse or child of a United States executed a Contract Between a Sponsor The failure or refusal of a sponsor or citizen (and the child has reached his or and a Household Member) a civil household member (who executed a her 18th birthday), three times the penalty in an amount within the penalty Contract Between a Sponsor and a difference between the sponsor’s range established in section Household Member) to sign any waiver household income and 125 percent of 213A(d)(2)(A) of the Act. Except, if the needed to verify the information when the Federal poverty line (or 100 percent sponsor or household member (who directed to do so constitutes a when permitted under section executed a Contract Between a Sponsor withdrawal of the Affidavit of Support 213A(f)(3) of the Act) for the sponsor’s and a Household Member), knowing Under Section 213A of the INA or household size (including all that the sponsored immigrant has Contract Between Sponsor and immigrants sponsored in any Affidavit received any means-tested public Household Member, so that, in of Support Under Section 213A of the benefit, fails to give notice in adjudicating the intending immigrant’s INA in force or submitted under this accordance with paragraph (a) of this application for an immigrant visa or section); section, DHS may impose on the adjustment of status, the Affidavit of (2) If the intending immigrant is an sponsor or household member (who Support Under Section 213A of the INA orphan or Hague Convention adoptee executed a Contract Between a Sponsor or Contract Between Sponsor and who is considered to be coming to the and a Household Member) a civil Household Member will be deemed not United States for adoption, the penalty in an amount within the penalty to have been filed. difference between the sponsor’s range established in section household income and 125 percent of * * * * * 213A(d)(2)(B) of the Act. The procedure the Federal poverty line (or 100 percent ■ 4. Section 213a.3 is amended by for imposing a civil penalty is of the Federal poverty line when revising paragraphs (a)(1) through (4) established at 8 CFR part 280. permitted under section 213A(f)(3) of and (b) to read as follows: ■ 5. Section 213a.4 is amended by the Act) for the sponsor’s household § 213a.3 Change of address. revising paragraphs (a)(3) and (c)(1) and size (including all immigrants (2) to read as follows: sponsored in any Affidavit of Support (a) * * * Under Section 213A of the INA in force (1) Filing requirements. If the address § 213a.4 Actions for reimbursement, or submitted under this section); or of a sponsor or household member (who public notice, and congressional reports. (3) In all other cases, five times the executed a Contract Between a Sponsor (a) * * * difference between the sponsor’s and a Household Member) changes (3) Role of USCIS and DHS. Upon the household income and 125 percent of while the sponsor’s support obligation receipt of a formal request from a party the Federal poverty line (or 100 percent is in effect, the sponsor or household or entity authorized to bring an action of the Federal poverty line when member (who executed a Contract to enforce an Affidavit of Support Under permitted under section 213A(f)(3) of Between a Sponsor and a Household Section 213A of the INA or Contract

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Between Sponsor and Household known address of a sponsor or Opportunity Reconciliation Act of 1996 Member, in the manner and on the form household member. in the case of any sponsored immigrant, designated by USCIS for this purpose, * * * * * the program official must provide notice USCIS may provide a certified copy of (c) * * * of such determination, including the an Affidavit of Support Under Section (1) For purposes of section 213A(i)(3) name of the sponsored immigrant and of 213A of the INA or Contract Between of the Act, USCIS will consider a the sponsor, to USCIS in a manner to be Sponsor and Household Member that sponsor or household member to be in designated by USCIS. has been executed on behalf of a compliance with the financial * * * * * sponsored immigrant for use as obligations of section 213A of the Act evidence in any action to enforce an unless a party that has obtained a final ■ 6. Add § 213a.6 to read as follows: Affidavit of Support Under Section judgment enforcing the sponsor’s § 213a.6 Severability. 213A of the INA or Contract Between obligations under section 213A(a)(1)(A) Sponsor and Household Member or 213A(b) of the Act has provided a The provisions in this part are (including, but not limited to, requests certified copy of the final judgment to intended to be independent severable for reimbursement), and may also the USCIS in a manner to be designated sections. In the event that any provision disclose the last known address and by USCIS. Failure to file a certified copy in this part is not implemented, DHS Social Security number of the sponsor of the final civil judgment in accordance intends that the remaining provisions be and household member. Requesting with this section has no effect on the implemented as an independent rule. information through the Systematic plaintiff’s ability to collect on the Alien Verification for Entitlement judgment pursuant to law. Chad R. Mizelle, (SAVE) Program is sufficient, and a (2) If a Federal, state, or local agency Senior Official Performing the Duties of the subpoena is not required to obtain the or private entity that administers any General Counsel, U.S. Department of sponsored immigrant’s current means-tested public benefit makes a Homeland Security. immigration or citizenship status, or the determination under section 421(e) of [FR Doc. 2020–21504 Filed 10–1–20; 8:45 am] name, Social Security number and last the Personal Responsibility and Work BILLING CODE 9111–97–P

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Part V Department of Defense General Services Administration National Aeronautics and Space Administration 48 CFR Chapter 1 Federal Acquisition Regulations; Final Rules

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DEPARTMENT OF DEFENSE implement 41 U.S.C. 1908. Section 1908 and National Aeronautics and Space requires an adjustment every 5 years (in Administration (NASA). GENERAL SERVICES years evenly divisible by 5) of statutory ACTION: Small Entity Compliance Guide. ADMINISTRATION acquisition-related thresholds for inflation using the Consumer Price SUMMARY: This document is issued NATIONAL AERONAUTICS AND Index for all urban consumers, except under the joint authority of DOD, GSA, SPACE ADMINISTRATION for the Construction Wage Rate and NASA. This Small Entity Requirements statute (Davis-Bacon Act), Compliance Guide has been prepared in 48 CFR Chapter 1 Service Contract Labor Standards accordance with section 212 of the statute, and trade agreements thresholds Small Business Regulatory Enforcement [Docket No. FAR–2020–0051, Sequence No. Fairness Act of 1996. It consists of a 6] (see FAR 1.109). DoD, GSA, and NASA are also using the same methodology to summary of the rule appearing in Federal Acquisition Regulation; change nonstatutory FAR acquisition- Federal Acquisition Circular (FAC) Federal Acquisition Circular 2021–01; related thresholds for adjustment in 2021–01, which amends the Federal Introduction 2020. This final rule will not have a Acquisition Regulation (FAR). An significant economic impact on a asterisk (*) next to a rule indicates that AGENCY: Department of Defense (DoD), substantial number of small entities. a regulatory flexibility analysis has been General Services Administration (GSA), prepared. Interested parties may obtain and National Aeronautics and Space William F. Clark, further information regarding this rule Administration (NASA). Director, Office of Government-wide by referring to FAC 2021–01, which ACTION: Summary presentation of a final Acquisition Policy, Office of Acquisition precedes this document. These rule. Policy, Office of Government-wide Policy. documents are also available via the Federal Acquisition Circular (FAC) internet at https://www.regulations.gov. SUMMARY: This document summarizes 2021–01 is issued under the authority of DATES: October 2, 2020. the Federal Acquisition Regulation the Secretary of Defense, the FOR FURTHER INFORMATION CONTACT: Mr. (FAR) rule agreed to by the Civilian Administrator of General Services, and Michael O. Jackson, Procurement Agency Acquisition Council and the the Administrator of National Analyst, at 202–208–4949 or Defense Acquisition Regulations Aeronautics and Space Administration. [email protected] for Council (Councils) in this Federal Unless otherwise specified, all clarification of content. For information Acquisition Circular (FAC) 2021–01. A Federal Acquisition Regulation (FAR) pertaining to status or publication companion document, the Small Entity and other directive material contained schedules, contact the Regulatory Compliance Guide (SECG), follows this in FAC 2021–01 is effective October 2, Secretariat Division at 202–501–4755. FAC. 2020 except for FAR Case 2019–013, Please cite FAC 2021–01, FAR case DATES: For effective date see the which is effective October 1, 2020. 2019–013. separate document, which follows. FOR FURTHER INFORMATION CONTACT: Mr. Linda W. Neilson, RULE LISTED IN FAC 2021–01 Michael O. Jackson, Procurement Director, Defense Acquisition Regulations Analyst, at 202–208–4949 or System Department of Defense. Subject FAR case [email protected] for clarification of content. For information Jeffrey A. Koses, * Inflation Adjustment of Ac- pertaining to status or publication Senior Procurement Executive/Deputy CAO, quisition-Related Thresh- schedules, contact the Regulatory Office of Acquisition Policy, U.S. General olds ...... 2019–013 Services Administration. Secretariat Division at 202–501–4755. ADDRESSES: The FAC, including the Please cite FAC 2021–01, FAR Case William G. Roets, II, 2019–013. SECG, is available via the internet at Acting Assistant Administrator, Office of https://www.regulations.gov. Procurement, National Aeronautics and RULE LISTED IN FAC 2021–01 Space Administration. SUPPLEMENTARY INFORMATION: A [FR Doc. 2020–21689 Filed 10–1–20; 8:45 am] summary for the FAR rule follows. For Subject FAR case the actual revisions and/or amendments BILLING CODE 6820–EP–P made by this FAR case, refer to the Inflation Adjustment of Acqui- specific subject set forth in the sition-Related Thresholds 2019–013 DEPARTMENT OF DEFENSE document following this summary. FAC 2021–01 amends the FAR as follows: ADDRESSES: The FAC, including the GENERAL SERVICES Inflation Adjustment of Acquisition- SECG, is available via the internet at ADMINISTRATION https://www.regulations.gov. Related Thresholds (FAR Case 2019– 013) SUPPLEMENTARY INFORMATION: A NATIONAL AERONAUTICS AND summary for the FAR rule follows. For SPACE ADMINISTRATION This final rule amends the Federal the actual revisions and/or amendments Acquisition Regulation (FAR) to further made by this FAR case, refer to the 48 CFR Chapter 1 implement 41 U.S.C. 1908. Section 1908 specific subject set forth in the requires an adjustment every 5 years (in document following this summary. FAC [Docket No. FAR–2020–0051, Sequence No. years evenly divisible by 5) of statutory 6] 2021–01 amends the FAR as follows: acquisition-related thresholds for Federal Acquisition Regulation; inflation using the Consumer Price Inflation Adjustment of Acquisition- Index for all urban consumers, except Related Thresholds (FAR Case 2019– Federal Acquisition Circular 2021–01; Small Entity Compliance Guide for the Construction Wage Rate 013) Requirements statute (Davis-Bacon Act), This final rule amends the Federal AGENCY: Department of Defense (DoD), Service Contract Labor Standards Acquisition Regulation (FAR) to further General Services Administration (GSA), statute, and trade agreements thresholds

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(see FAR 1.109). DoD, GSA, and NASA SUPPLEMENTARY INFORMATION: for contracts entered into after June 30, are also using the same methodology to 2018. I. Background change nonstatutory FAR acquisition- FAR Case 2018–007, published as a related thresholds for adjustment in DoD, GSA, and NASA published a final rule on May 6, 2020 (85 FR 27088) 2020. This final rule will not have a proposed rule at 85 FR 39146 on June implemented section 821 of the NDAA significant economic impact on a 30, 2020, to further implement 41 U.S.C. for FY 2018 (Pub. L. 115–91) which substantial number of small entities. 1908. Section 1908 requires an made inflation adjustments of statutory adjustment every five years (on October acquisition-related thresholds under 41 William F. Clark, 1 of each year evenly divisible by five) U.S.C. 1908 applicable to existing Director, Office of Government-wide of statutory acquisition-related contracts and subcontracts that contain Acquisition Policy, Office of Acquisition thresholds for inflation, using the the clause implementing section 821 Policy, Office of Government-wide Policy. Consumer Price Index (CPI) for all urban and that are in effect on the date of the [FR Doc. 2020–21691 Filed 10–1–20; 8:45 am] consumers, except for the Construction adjustment. The case replaced BILLING CODE 6820–EP–P Wage Rate Requirements statute (Davis- throughout FAR part 52 as appropriate, Bacon Act), Service Contract Labor numerical values based on the value of Standards statute, and trade agreements the MPT or the SAT with the term DEPARTMENT OF DEFENSE thresholds (see FAR 1.109). As a matter ‘‘micro-purchase threshold’’ or GENERAL SERVICES of policy, DoD, GSA, and NASA are also ‘‘simplified acquisition threshold’’. ADMINISTRATION using the same methodology to adjust When such terms are used, there is a nonstatutory FAR acquisition-related reference to the definition in FAR 2.101. NATIONAL AERONAUTICS AND thresholds on October 1, 2020. In addition to the MPT and SAT, SPACE ADMINISTRATION The preamble to the proposed rule numerical values for certain thresholds contained detailed explanations of— have been replaced with a reference to • 48 CFR Parts 1, 2, 3, 5, 6, 8, 9, 10, 12, What an acquisition-related the applicable FAR text that specifies 13, 15, 16, 17, 19, 22, 26, 32, 36, 42, 50, threshold is; the numerical threshold. • What acquisition-related thresholds 52, and 53 The following list identifies the are not subject to escalation adjustment impact of this rule on heavily-used [FAC 2021–01, FAR Case 2019–013, Docket under this case; thresholds. No. FAR–2019–0013; Sequence No. 1] • How the Defense Acquisition • The micro-purchase threshold at RIN 9000–AN96 Regulations Council and the Civilian FAR 2.101 was raised to $10,000 by Agency Acquisition Council (Councils) statute (see FAR Case 2018–004). No Federal Acquisition Regulation: analyze statutory and non-statutory further increase to the basic threshold is Inflation Adjustment of Acquisition- acquisition-related thresholds; and made at this time, as there has been • Related Thresholds The effect of this rule on the most insufficient inflation. Paragraph 3(ii) of heavily used thresholds. the definition, for acquisitions to AGENCY: Department of Defense (DoD), DoD, GSA, and NASA implemented support contingency operations or to General Services Administration (GSA), three rules that have reduced the facilitate defense against certain attacks, and National Aeronautics and Space complexity and impact of the October 1, is increasing from $30,000 to $35,000. Administration (NASA). 2020, threshold adjustments throughout • The simplified acquisition ACTION: Final rule. the FAR. The changes implemented threshold was changed to $250,000 by through these rules significantly statute (see FAR Case 2018–004). No SUMMARY: DoD, GSA, and NASA are reduced the number of cite-specific issuing a final rule amending the further increase in the basic threshold is inflation adjustments in the FAR and proposed, as there has been insufficient Federal Acquisition Regulation (FAR) to associated matrix. further implement the statute which inflation. Paragraph (1)(i) of the FAR Case 2018–004, published as a definition for acquisitions to support requires an adjustment every five years final rule on July 2, 2020 (85 FR 40064) of statutory acquisition-related contingency operations or to facilitate implemented section 217(b) of the defense against certain attacks, is thresholds for inflation. The adjustment National Defense Authorization Act uses the Consumer Price Index for all increasing from $750,000 to $800,000. (NDAA) for Fiscal Year (FY) 2017 (Pub. • The preaward and post-award urban consumers, and does not apply to L. 114–328) and sections 805, 806, and notices (FAR part 5) remain at $25,000 the Construction Wage Rate 1702(a) of the NDAA for FY 2018 (Pub. because of trade agreements. Requirements statute (Davis-Bacon Act), L. 115–91), to increase the micro- • The requirements for limiting Service Contract Labor Standards purchase threshold (MPT) to $10,000 competition (FAR part 6) to eligible 8(a) statute, and trade agreements and simplified acquisition threshold awards over $22 million is increased to thresholds. DoD, GSA, and NASA are (SAT) to $250,000 throughout the FAR. $25 million. also using the same methodology to The case also changed some stated • The simplified procedures for adjust nonstatutory FAR acquisition- dollar thresholds to text to ensure certain commercial items ceiling (FAR related thresholds in 2020. continued alignment with the value 13.500) is increased from $7 million to DATES: Effective: October 1, 2020. defined in FAR subpart 2.101. $7.5 million. For acquisitions described FOR FURTHER INFORMATION CONTACT: Mr. FAR Case 2018–005, published as a at 13.500(c), the ceiling is increasing Michael O. Jackson, Procurement final rule on July 2, 2020 (85 FR 40071) from $13.5 million to $15 million. Analyst, at 202–208–4949 or implemented section 811 of the NDAA • The cost or pricing data threshold [email protected] for for FY 2018 that amended 10 U.S.C. (FAR 15.403–4) was increased by statute clarification of content. For information 2306a, Cost or Pricing Data: Truth in from $750,000 to $2 million (see FAR pertaining to status or publication Negotiations and 41 U.S.C. 3502, Case 2018–005) and is not increasing in schedules, contact the Regulatory Required cost or pricing data and this case. Secretariat Division at 202–501–4755. certification. The case increased the • The prime contractor Please cite FAC 2021–01, FAR Case threshold for requesting certified cost or subcontracting plan (FAR 19.702) 2019–013. pricing data from $750,000 to $2 million threshold is increasing from $700,000 to

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$750,000, but the construction threshold Response: The proposed rule formula amount (see Section II.A. of this of $1.5 million will not change. contained the correct section numbering preamble). In regard to whether bond Standard Form 294 at General for sections 42.709–0 through 42.709–6. thresholds are considered acquisition- Instruction 3 has a reference to The Acquisition.Gov website reflected related thresholds, the Councils disagree $700,000, which will be changed. incorrect references, however, the with the commenter’s assertion that the • The threshold for reporting first-tier Electronic Code of Federal Regulations thresholds are ‘‘required levels of subcontract information including reflected the correct FAR text. insurance’’. The application of payment executive compensation will not change Comment: A respondent asked why bond requirements are specific to a (FAR subpart 4.14 and 52.204–10). FAR 19.804–6 and 19.1506 did not particular contract, however required This is the fourth review of FAR appear in the proposed rule. levels of insurance apply more generally acquisition-related thresholds since the Response: These were inadvertently to a particular contractor. An example of omitted. The required statutory changes statute was passed on October 28, 2004 a required level of insurance can be now appear in the final rule. (section 807 of the Ronald W. Reagan found at FAR 28.307–2, such as National Defense Authorization Act for Comment: A respondent stated it is unclear why the existing thresholds at worker’s compensation insurance which Fiscal Year 2005). The last review was FAR 19.1406(a)(2)(i) and 19.1506(c)(1)(i) is required at $100,000. In regard to the conducted under FAR case 2014–022 are different than those established comment that the increase will harm during FY 2015. The final rule under under FAR 19.805–1. The respondent small business, this is a policy matter that case was published in the Federal stated that prior to 2006, FAR 19.805– which does not override the statutory Register on July 2, 2015 (80 FR 38293), 1, 19.1306, and 19.1406 appear to have requirement to apply the inflation effective October 1, 2015. been identical (or similar) and one increase to acquisition-related statutory Seven respondents submitted would assume that if these thresholds thresholds. These particular thresholds comments on the proposed rule. were adjusted based on the CPI, they have increased in previous FAR II. Discussion and Analysis would remain the same. inflation cases, to include the most Response: The thresholds at FAR recent FAR case 2014–022, from the The Civilian Agency Acquisition 19.1406(a)(2)(i), 19.1506(c)(1)(i), and $25,000 found in 40 U.S.C. 3132 to the Council and the Defense Acquisition 19.805–1 were established by different current FAR amount of $35,000. Regulations Council (the Councils) statutes. The calculations are set by 41 reviewed the comments in the Comment: A respondent expressed U.S.C. 1908, and are based on the general support for the rule. development of the final rule. enactment date of the underlying Response: The support is noted. A. Summary of Significant Changes statute. The calculation for FAR 19.1406(a)(2) is based on a statute Minor edits were made to the final III. Applicability to Contracts at or enacted , 2003; paragraph rule to account for baseline updates Below the Simplified Acquisition (a)(2)(i) will increase to $7 million, but caused by publication of other FAR Threshold (SAT) and for Commercial paragraph (a)(2)(ii) was not sufficient for interim or final rules. Items, Including Commercially that threshold to change in the final Available Off-the-Shelf (COTS) Items The proposed rule included some rule, and will remain at $4 million. FAR thresholds that were very close but, 19.1506(c)(1)(i) and (ii) are subject to the This final rule does not create any ultimately, did not reach the statutory inflation statute, but were inadvertently new provisions or clauses, nor does it calculation formula amount. As a result, omitted from the proposed rule; they change the applicability or burden of the Councils have removed them from appear in the final rule with increased any existing provisions or clauses the text of the final rule: FAR 9.405–2, thresholds of $7 million and $4.5 included in solicitations and contracts 9.409, 13.402, $3,500 at 16.505(b), million. The calculation for FAR valued at or below the SAT, or for 19.1406(a)(2)(ii), 28.102–1 to 28.102–3, 19.805–1 and 19.1306 were based on commercial items, including COTS and 42.1502(f). In one case, for FAR statutes enacted before October 1, 2000. 50.102–3, the statutory calculation did items, except for the changes in the For more information on the thresholds themselves. increase the threshold to $35 million, calculations please see FAR 1.109 and but this is lower than the value the matrix referenced there. IV. Executive Orders 12866 and 13563 published in the proposed rule. Comment: A respondent Executive Orders (E.O.s) 12866 and Some thresholds were inadvertently recommended that the Miller Act omitted, but are now included because threshold be raised to $250,000 to be in 13563 direct agencies to assess all costs they did reach the statutory calculation line with the increase of the SAT to and benefits of available regulatory formula amount: 16.503(d), 19.804–6, $250,000. alternatives and, if regulation is 19.1506, 52.209–12, 52.222–50, and Response: There is no statute allowing necessary, to select regulatory 52.222–56. this. approaches that maximize net benefits The FAR text also makes a correction Comment: Two respondents stated (including potential economic, to 52.222–50(i)(1). The paragraphs that the $35,000 payment bond environmental, public health and safety marked as (A) and (B) have been thresholds at FAR 28.102–1(b)(1), effects, distributive impacts, and corrected to (i) and (ii), respectively. 28.102–2(c), and 28.102–3(b) should not equity). E.O. 13563 emphasizes the importance of quantifying both costs B. Analysis of Public Comments be increased, as (1) they are not acquisition-related thresholds, instead and benefits, of reducing costs, of A discussion of the comments is being closer to ‘‘required levels of harmonizing rules, and of promoting provided as follows: insurance’’, and (2) the increase would flexibility. This is not a significant Comment: A respondent stated that harm small business by increasing the regulatory action and, therefore, was not there appeared to be an error in the risk of nonpayment by prime subject to review under section 6(b) of proposed rule with a reference to FAR contractors. E.O. 12866, Regulatory Planning and 42.709–0, as the current FAR has no Response: These thresholds are not Review, dated September 30, 1993. This 42.709–0; and did we mean the increasing in the final rule because they rule is not a major rule under 5 U.S.C. reference to 42.709–6 to be 42.709–7. did not reach the statutory calculation 804.

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V. Executive Order 13771 There are no known significant alternative PART 3—IMPROPER BUSINESS approaches to the rule that would meet the PRACTICES AND PERSONAL The rule is not subject to E.O. 13771, stated objectives of the applicable statute. CONFLICTS OF INTEREST because this rule is not a significant Interested parties may obtain a copy regulatory action under E.O. 12866. 3.1004 [Amended] of the FRFA from the Regulatory VI. Regulatory Flexibility Act Secretariat Division. The Regulatory ■ 4. Amend section 3.1004 by removing Secretariat Division has submitted a from paragraphs (a), (b)(1)(i), and (b)(3) DoD, GSA, and NASA have prepared copy of the FRFA to the Chief Counsel ‘‘$5.5 million’’ and adding ‘‘$6 million’’ a Final Regulatory Flexibility Analysis for Advocacy of the Small Business in their places, respectively. (FRFA) consistent with the Regulatory Administration. Flexibility Act, 5 U.S.C. 601, et seq. The PART 5—PUBLICIZING CONTRACT FRFA is summarized as follows: VII. Paperwork Reduction Act ACTIONS This final rule amends the Federal The Paperwork Reduction Act (44 5.303 [Amended] Acquisition Regulation to implement 41 U.S.C. chapter 35) does apply; however, U.S.C. 1908 and to amend other acquisition- these changes to the FAR do not impose ■ 5. Amend section 5.303 in paragraph related dollar thresholds that are based on additional information collection (a) by removing ‘‘$4 million’’ and policy rather than statute in order to adjust requirements to the paperwork burden adding ‘‘$4.5 million’’ in its place. for the changing value of the dollar. 41 U.S.C. previously approved under OMB 1908 requires adjustment every five years of PART 6—COMPETITION statutory acquisition-related dollar Control numbers: 9000–0006, 9000– REQUIREMENTS thresholds, except for Construction Wage 0007, 1250–0004, and 1293–0005. Rate Requirements statute (Davis-Bacon Act), List of Subjects in 48 CFR Parts 1, 2, 3, 6.204 [Amended] Service Contract Labor Standards statute, and ■ trade agreements thresholds. While 5, 6, 8, 9, 10, 12, 13, 15, 16, 17, 19, 22, 6. Amend section 6.204 in paragraph reviewing all statutory acquisition-related 26, 32, 36, 42, 50, 52, and 53 (b) by removing ‘‘$22 million’’ and adding ‘‘$25 million’’ in its place. thresholds, this case presented an Government Procurement. opportunity to also review all nonstatutory 6.302–5 [Amended] acquisition-related thresholds in the FAR William F. Clark, that are based on policy. The objective of the Director, Office of Government-wide ■ 7. Amend section 6.302–5 by— case is to maintain the status quo, by Acquisition Policy, Office of Acquisition ■ a. Removing from paragraph (b)(4) adjusting acquisition-related thresholds for Policy, Office of Government-wide Policy. ‘‘$22 million. (See subpart 19.8.)’’ and inflation. There were no significant issues raised by Therefore, DoD, GSA, and NASA adding ‘‘$25 million. (See subpart the public in response to the initial amend 48 CFR parts 1, 2, 3, 5, 6, 8, 9, 19.8.)’’ in its place; and ■ regulatory flexibility analysis. 10, 12, 13, 15, 16, 17, 19, 22, 26, 32, 36, b. Removing from paragraph (c)(2)(iii) DoD, GSA, and NASA do not expect this 42, 50, 52, and 53 as set forth below: ‘‘$22 million’’ and adding ‘‘$25 million’’ rule to have a significant economic impact on in its place. a substantial number of small entities within ■ 1. The authority citation for 48 CFR the meaning of the Regulatory Flexibility Act, parts 1, 2, 3, 5, 6, 8, 9, 10, 12, 13, 15, 6.303–1 [Amended] 5 U.S.C. 601, et seq. The threshold changes 16, 17, 19, 22, 26, 32, 36, 42, 50, 52, and ■ 8. Amend section 6.303–1 in in this rule are not expected to have any 53 continues to read as follows: significant economic impact on small paragraph (b) introductory text by business concerns because the threshold Authority: 40 U.S.C. 121(c); 10 U.S.C. removing ‘‘$22 million’’ and adding changes are intended to maintain the status chapter 137; and 51 U.S.C. 20113. ‘‘$25 million’’ in its place. quo by adjusting for changes in the value of 6.303–2 [Amended] the dollar. Often any impact will be PART 1—FEDERAL ACQUISITION beneficial, by preventing burdensome REGULATIONS SYSTEM ■ 9. Amend section 6.303–2 by requirements from applying to more and 1.109 [Amended] removing from the introductory text of more acquisitions, as the dollar loses value. paragraphs (b) and (d) ‘‘$22 million’’ One threshold change in this rule which ■ 2. Amend section 1.109, in paragraph and adding ‘‘$25 million’’ in their may impact small business concerns is the (e) by removing ‘‘2014–022’’ and adding places, respectively. increase of the threshold for requiring a ‘‘2019–013’’ in its place. justification or determination for sole source 6.304 [Amended] 8(a) awards made pursuant to FAR 6.303–1 PART 2—DEFINITIONS OF WORDS ■ 10. Amend section 6.304 by— from $22 million to $25 million. This AND TERMS threshold increase is expected to benefit ■ a. Removing from paragraph (a)(1) small businesses under the 8(a) program by 2.101 [Amended] ‘‘$700,000’’ and adding ‘‘$750,000’’ in expanding their access to contract its place; ■ opportunities. To assess the impact of the 3. Amend section 2.101, in paragraph ■ b. Removing from paragraph (a)(2) increase, data was requested from the Federal (b)(2) by— ‘‘$700,000’’ and ‘‘$13.5 million’’ and Procurement Data System. For FY 2017 ■ a. In the definition ‘‘Major system’’, through FY 2019, there was an average of 300 adding ‘‘$750,000’’ and ‘‘$15 million’’ in contracts and calls/orders between $22 removing from paragraph (2) ‘‘$ 2 their places, respectively; million and $25 million. Of these actions, an million’’ and adding ‘‘$2.5 million’’ in ■ c. Removing from paragraph (a)(3) average of 134 went to small business its place; introductory text ‘‘$13.5 million’’, ‘‘$68 concerns, 27 of which were 8(a) program ■ b. In the definition ‘‘Micro-purchase million’’, and ‘‘$93 million’’ and adding participants. We expect that many of these threshold’’, removing from paragraph ‘‘$15 million’’, ‘‘$75 million’’, and awards will still go to small business (3)(ii) ‘‘$30,000’’ and adding ‘‘$35,000’’ ‘‘$100 million’’ in their places, concerns and potentially increase the number in its place; and respectively; and of awards to 8(a) program participants. ■ ■ This rule does not include any new c. In the definition ‘‘Simplified d. Removing from paragraph (a)(4) reporting, recordkeeping, or other acquisition threshold’’, removing from ‘‘$68 million’’ and ‘‘$93 million’’ and compliance requirements on any small paragraph (1)(i) ‘‘$750,000’’ and adding adding ‘‘$75 million’’ and ‘‘$100 entities. ‘‘$800,000’’ in its place. million’’ in their places, respectively.

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PART 8—REQUIRED SOURCES OF PART 12—ACQUISITION OF million’’ in their places, respectively; SUPPLIES AND SERVICES COMMERCIAL ITEMS and ■ d. Removing from paragraph (a)(2)(iv) 8.404 [Amended] 12.102 [Amended] ‘‘$68 million’’ and ‘‘$93 million’’ and ■ 11. Amend section 8.404 in paragraph ■ 18. Amend section 12.102 in adding ‘‘$75 million’’ and ‘‘$100 (b)(2) by removing ‘‘$550,000’’ and paragraph (f)(2) by removing ‘‘$19 million’’ in their places, respectively. adding ‘‘$600,000’’ in its place. million’’ and adding ‘‘$20 million’’ in its place. PART 15—CONTRACTING BY 8.405–3 [Amended] NEGOTIATION ■ 12. Amend section 8.405–3 by— 12.203 [Amended] 15.403–1 [Amended] ■ a. Removing from paragraph (a)(3)(ii) ■ 19. Amend section 12.203 by introductory text ‘‘$112 million’’ and removing ‘‘$7 million ($13 million’’ and ■ 26. Amend section 15.403–1 in adding ‘‘$100 million’’ in its place; adding ‘‘$7.5 million ($15 million’’ in paragraph (c)(3)(iv) by removing ‘‘$19 ■ b. Removing from paragraph (a)(3)(iii) its place. million’’ and adding ‘‘$20 million’’ in ‘‘$112 million’’ and adding ‘‘$100 its place. million’’ in its place; and PART 13—SIMPLIFIED ACQUISITION ■ c. Removing from paragraph (a)(7)(v) PROCEDURES 15.404–3 [Amended] ‘‘$112 million’’ and adding ‘‘$100 ■ 27. Amend section 15.404–3 in million’’ in its place. 13.000 [Amended] paragraph (c)(1)(i) by removing ‘‘$13.5 ■ million’’ and adding ‘‘$15 million’’ in 8.405–6 [Amended] 20. Amend section 13.000 by removing ‘‘$7 million ($13 million’’ and its place. ■ 13. Amend section 8.405–6 by— adding ‘‘$7.5 million ($15 million’’ in ■ 15.407–2 [Amended] a. Removing from paragraph (d)(1) its place. ‘‘$700,000’’ and adding ‘‘$750,000’’ in ■ 28. Amend section 15.407–2 by its place; 13.003 [Amended] removing from paragraphs (c)(1) and ■ b. Removing from paragraph (d)(2) ■ 21. Amend section 13.003 by (c)(2) introductory text ‘‘$13.5 million’’ ‘‘$700,000’’ and ‘‘$13.5 million’’ and removing from paragraphs (c)(1)(ii) and and adding ‘‘$15 million’’ in their adding ‘‘$750,000’’ and ‘‘$15 million’’ in (g)(2) ‘‘$7 million ($13 million’’ and places, respectively. their places, respectively; adding ‘‘$7.5 million ($15 million’’ in ■ c. Removing from paragraph (d)(3) their places, respectively. 15.408 [Amended] introductory text ‘‘$13.5 million’’, ‘‘$68 ■ 29. Amend section 15.408, in Table million’’, and ‘‘$93 million’’ and adding 13.201 [Amended] 15–2, section II, paragraph A.(2) by ‘‘$15 million’’, ‘‘$75 million’’, and ■ 22. Amend section 13.201 in removing ‘‘$13.5 million’’ and adding ‘‘$100 million’’ in their places, paragraph (g)(1)(ii) by removing ‘‘$15 million’’ in its place. respectively; and ■ ‘‘$30,000’’ and adding ‘‘$35,000’’ in its d. Removing from paragraph (d)(4) place. PART 16—TYPES OF CONTRACTS ‘‘$68 million’’ and ‘‘$93 million’’ and adding ‘‘$75 million’’ and ‘‘$100 13.303–5 [Amended] 16.503 [Amended] million’’ in their places, respectively. ■ 23. Amend section 13.303–5 by— ■ 30. Amend section 16.503 by— ■ ■ a. Removing from paragraph (b)(2) PART 9—CONTRACTOR a. Removing from paragraph (b)(1) ‘‘$7 ‘‘$112 million’’ and adding ‘‘$100 QUALIFICATIONS million’’ and ‘‘$13 million’’ and adding ‘‘$7.5 million’’ and ‘‘$15 million’’ in million’’ in its place; and 9.104–5 [Amended] their places, respectively; and ■ b. Removing from paragraph (d)(1) ■ ‘‘$13.5 million’’ and adding ‘‘$15 ■ 14. Amend section 9.104–5 in b. Removing from paragraph (b)(2) ‘‘$7 million’’ in its place. paragraph (c) by removing ‘‘$5,000,000’’ million ($13 million’’ and adding ‘‘$7.5 and adding ‘‘$5.5 million’’ in its place. million ($15 million’’ in its place. 16.504 [Amended] 9.104–7 [Amended] 13.500 [Amended] ■ 31. Amend section 16.504 by— ■ ■ a. Removing from paragraphs ■ 15. Amend section 9.104–7 by— 24. Amend section 13.500 by— ■ a. Removing from paragraphs (b) and ■ a. Removing from paragraph (a) ‘‘$7 (c)(1)(ii)(D)(1) and (D)(3) introductory (c)(1) ‘‘$550,000’’ and adding million ($13 million’’ and adding ‘‘$7.5 text, ‘‘$112 million’’ and adding ‘‘$100 ‘‘$600,000’’ in their places, respectively; million ($15 million’’ in its place; and million’’ in their places, respectively; ■ and b. Removing from paragraph (c) and ■ ■ b. Removing from paragraph (e) introductory text ‘‘$13 million’’ and b. Removing from paragraph (c)(2)(i) ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ adding ‘‘$15 million’’ in its place. introductory text ‘‘$13.5 million’’ and adding ‘‘$15 million’’ in its place. in its place. 13.501 [Amended] 16.505 [Amended] PART 10—MARKET RESEARCH ■ 25. Amend section 13.501 by— ■ a. Removing from paragraph (a)(2)(i) ■ 32. Amend section 16.505 by— 10.001 [Amended] ‘‘$700,000’’ and adding ‘‘$750,000’’ in ■ a. Removing from paragraph (b)(1)(iv) ■ 16. Amend section 10.001 in its place; introductory text ‘‘$5.5 million’’ paragraph (d) by removing ‘‘$5.5 ■ b. Removing from paragraph (a)(2)(ii) wherever it appears and adding ‘‘$6 million’’ and adding ‘‘$6 million’’ in its ‘‘$700,000’’ and ‘‘$13.5 million’’ and million’’ in their places, respectively; place. adding ‘‘$750,000’’ and ‘‘$15 million’’ in ■ b. Removing from paragraph their places, respectively; (b)(2)(ii)(C)(1) ‘‘$700,000’’ and adding 10.003 [Amended] ■ c. Removing from paragraph (a)(2)(iii) ‘‘$750,000’’ in its place; ■ 17. Amend section 10.003 by ‘‘$13.5 million’’, ‘‘$68 million’’, and ■ c. Removing from paragraph removing ‘‘$5.5 million’’ and adding ‘‘$93 million’’ and adding ‘‘$15 (b)(2)(ii)(C)(2) ‘‘$700,000’’ and ‘‘$13.5 ‘‘$6 million’’ in its place. million’’, ‘‘$75 million’’, and ‘‘$100 million’’ and adding ‘‘$750,000’’ and

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‘‘$15 million’’ in their places, 19.804–6 [Amended] ‘‘$500,000’’ and adding ‘‘$550,000’’ in respectively; ■ 39. Amend section 19.804–6 in its place. ■ d. Removing from paragraph paragraph (c)(2) by removing ‘‘$7 (b)(2)(ii)(C)(3) introductory text ‘‘$13.5 PART 26—OTHER SOCIOECONOMIC million’’ and ‘‘$4 million’’ and adding PROGRAMS million’’, ‘‘$68 million’’, and ‘‘$93 ‘‘$7.5 million’’ and ‘‘$4.5 million’’ in million’’ and adding ‘‘$15 million’’, their places, respectively. 26.404 [Amended] ‘‘$75 million’’ and ‘‘$100 million’’ in their places, respectively; 19.805–1 [Amended] ■ 49. Amend section 26.404 by ■ e. Removing from paragraph removing ‘‘$25,000’’ and adding ■ 40. Amend section 19.805–1 in ‘‘$30,000’’ in its place. (b)(2)(ii)(C)(4) ‘‘$68 million’’ and ‘‘$93 paragraph (a)(2) by removing ‘‘$7 million’’ and adding ‘‘$75 million’’ and million’’ and ‘‘$4 million’’ and adding PART 32—CONTRACT FINANCING ‘‘$100 million’’ in their places, ‘‘$7.5 million’’ and ‘‘$4.5 million’’ in respectively; and their places, respectively. 32.104 [Amended] ■ f. Removing from paragraph (b)(6) ■ 50. Amend section 32.104 by introductory text ‘‘$5.5 million’’ 19.808–1 [Amended] removing from paragraphs (d)(2)(i) and wherever it appears and adding ‘‘$6 ■ 41. Amend section 19.808–1 in (ii) ‘‘$2.5 million’’ and adding ‘‘$3 million’’ in their places, respectively. paragraph (a) by removing ‘‘$22 million’’ in their places, respectively. 16.506 [Amended] million’’ and adding ‘‘$25 million’’ in its place. PART 36—CONSTRUCTION AND ■ 33. Amend section 16.506 by— ARCHITECT-ENGINEER CONTRACTS ■ a. Removing from paragraphs (f) and 19.1306 [Amended] (g) ‘‘$13.5 million’’ and adding ‘‘$15 36.303–1 [Amended] ■ 42. Amend section 19.1306 by— million’’ in their places, respectively; ■ ■ a. Removing from paragraph (a)(2)(i) 51. Amend section 36.303–1 in and ‘‘$7 million’’ and adding ‘‘$7.5 million’’ paragraph (a)(4) by removing ‘‘$4 ■ b. Removing from paragraph (h) ‘‘$5.5 in its place; and million’’ and adding ‘‘$4.5 million’’ in million’’ and adding ‘‘$6 million’’ in its ■ b. Removing from paragraph (a)(2)(ii) its place. place. ‘‘$4 million’’ and adding ‘‘$4.5 million’’ PART 42—CONTRACT PART 17—SPECIAL CONTRACTING in its place. ADMINISTRATION AND AUDIT METHODS 19.1406 [Amended] SERVICES 17.108 [Amended] ■ 43. Amend section 19.1406 by 42.709–0 [Amended] ■ 34. Amend section 17.108 by— removing from paragraph (a)(2)(i) ‘‘$6.5 ■ 52. Amend section 42.709–0 in ■ a. Removing from paragraph (a) million’’ and adding ‘‘$7 million’’ in its paragraph (b) by removing ‘‘$750,000’’ ‘‘$13.5 million’’ and adding ‘‘$15 place. and adding ‘‘$800,000’’ in its place. million’’ in its place; and 19.1506 [Amended] ■ b. Removing from paragraph (b) 42.709–6 [Amended] ‘‘$135.5 million’’ and adding ‘‘$150 ■ 44. Amend section 19.1506 by— ■ 53. Amend section 42.709–6 by million’’ in its place. ■ a. Removing from paragraph (c)(1)(i) removing ‘‘$750,000’’ and adding ‘‘$6.5 million’’ and adding ‘‘$7 million’’ ‘‘$800,000’’ in its place. 17.500 [Amended] in its place; and 42.1502 [Amended] ■ 35. Amend section 17.500 in ■ b. Removing from paragraph (c)(1)(ii) paragraph (c)(2) by removing ‘‘$4 million’’ and adding ‘‘$4.5 million’’ ■ 54. Amend section 42.1502 by ‘‘$550,000’’ and adding ‘‘$600,000’’ in in its place. removing from paragraph (e) ‘‘$700,000’’ its place. twice and adding ‘‘$750,000’’ in their PART 22—APPLICATION OF LABOR places, respectively. PART 19—SMALL BUSINESS LAWS TO GOVERNMENT PROGRAMS ACQUISITIONS PART 50—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE 19.702 [Amended] 22.1103 [Amended] SAFETY ACT ■ ■ 36. Amend section 19.702 by 45. Amend section 22.1103 by 50.102–1 [Amended] removing from paragraphs (a)(1)(i) removing ‘‘$700,000’’ and adding through (iii) ‘‘$700,000’’ and adding ‘‘$750,000’’ in its place. ■ 55. Amend section 50.102–1 in ‘‘$750,000’’ in their places, respectively. paragraph (b) by removing ‘‘$70,000’’ 22.1701 [Amended] and adding ‘‘$75,000’’ in its place. 19.704 [Amended] ■ 46. Amend section 22.1701 in 50.102–3 [Amended] ■ 37. Amend section 19.704 by— paragraph (b)(2) by removing ■ ■ a. Removing from paragraph (a) ‘‘$500,000’’ and adding ‘‘$550,000’’ in 56. Amend section 50.102–3 by— ■ a. Removing from paragraph (b)(4) introductory text ‘‘plan’’ and adding its place. ‘‘$34 million’’ and adding ‘‘$35 million’’ ‘‘plan required’’ in its place; and ■ b. Removing from paragraph (a)(9) 22.1703 [Amended] in its place; and ■ b. Removing from paragraphs (e)(1)(i) ‘‘$700,000’’ and adding ‘‘$750,000’’ in ■ 47. Amend section 22.1703 by and (ii) ‘‘$70,000’’ and adding its place. removing from paragraphs (c)(1)(i)(B) ‘‘$75,000’’ in their places. and (c)(3)(i)(B) ‘‘$500,000’’ and adding 19.708 [Amended] ‘‘$550,000’’ in their places, respectively. PART 52—SOLICITATION PROVISIONS ■ 38. Amend section 19.708 in AND CONTRACT CLAUSES paragraph (b)(1) introductory text by 22.1705 [Amended] removing ‘‘$700,000’’ and adding ■ 48. Amend section 22.1705 in ■ 57. Amend section 52.209–12 by ‘‘$750,000’’ in its place. paragraph (b)(1) by removing revising the date of the provision, and

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removing from paragraph (b) ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ Certification Regarding Trafficking in ‘‘$5,000,000’’ and adding ‘‘$5.5 million’’ in its place. Persons Compliance Plan (OCT 2020) The revision reads as follows: in its place. * * * * * The revision reads as follows: 52.213–4 Terms and Conditions— ■ Simplified Acquisitions (Other Than 62. Amend section 52.244–6 by 52.209–12 Certification Regarding Tax revising the date of the clause, and Matters. Commercial Items). removing from paragraph (c)(1)(xiv)(A) * * * * * * * * * * ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ Certification Regarding Tax Matters Terms and Conditions—Simplified in its place. (OCT 2020) Acquisitions (Other Than Commercial The revision reads as follows: Items) (OCT 2020) * * * * * * * * * * 52.244–6 Subcontracts for Commercial ■ 58. Amend section 52.212–5 by— Items. ■ ■ 60. Amend section 52.222–50— a. Revising the date of the clause; * * * * * ■ b. Removing from paragraph (b)(35)(i) ■ a. Revising the date of the clause; ■ ‘‘(JAN 2019)’’ and adding ‘‘(OCT 2020)’’ b. Removing from paragraph (h)(1)(ii) Subcontracts for Commercial Items in its place; ‘‘$500,000’’ and adding $550,000’’ in its (OCT 2020) ■ c. Removing from paragraph place; ■ * * * * * (e)(1)(xiii)(A) ‘‘(JAN 2019)’’ and adding c. Redesignating paragraphs (i)(1)(A) ‘‘(OCT 2020)’’ in its place; and (B) as paragraphs (i)(1)(i) and (ii); ■ 63. Amend section 52.248–3 by ■ d. Revising the date of Alternate II; and revising the date of the clause, and ■ d. Removing from newly redesignated and removing from paragraph (h) ‘‘$70,000’’ paragraph (i)(1)(ii) ‘‘$500,000’’ and ■ e. In paragraph (e)(1)(ii)(L) of and adding ‘‘$75,000’’ in its place. Alternate II removing ‘‘(JAN 2019)’’ and adding ‘‘$550,000’’ in its place. The revision reads as follows: adding ‘‘(OCT 2020)’’ in its place. The revision reads as follows: The revisions read as follows: 52.222–50 Combating Trafficking in 52.248–3 Value Engineering— Persons. Construction. 52.212–5 Contract Terms and Conditions Required To Implement Statutes or * * * * * * * * * * Executive Orders—Commercial Items. Combating Trafficking in Persons (OCT Value Engineering—Construction (OCT * * * * * 2020) 2020) Contract Terms and Conditions * * * * * * * * * * Required To Implement Statutes or ■ 61. Amend section 52.222–56 by Executive Orders—Commercial Items revising the date of the provision, and PART 53—FORMS (OCT 2020) removing from paragraph (b)(2) 53.219 [Amended] * * * * * ‘‘$500,000’’ and adding ‘‘$550,000’’ in Alternate II (OCT 2020). * * * its place. ■ 64. Amend section 53.219 by The revision reads as follows: * * * * * removing ‘‘(Rev. 8/2016)’’ and adding ■ 59. Amend section 52.213–4 by 52.222–56 Certification Regarding ‘‘(Rev. OCT 2020)’’ in its place. revising the date of the clause, and Trafficking in Persons Compliance Plan. [FR Doc. 2020–21690 Filed 10–1–20; 8:45 am] removing from paragraph (b)(1)(viii)(A) * * * * * BILLING CODE 6820–EP–P

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Part VI

Department of Commerce

National Oceanic and Atmospheric Administration 50 CFR Part 660 Magnuson-Stevens Act Provisions; Fisheries Off West Coast States; Pacific Coast Groundfish Fishery; Pacific Coast Groundfish Fishery Management Plan; Amendment 29; 2021–22 Biennial Specifications and Management Measures; Proposed Rule

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DEPARTMENT OF COMMERCE #!docketDetail;D=NOAA-NMFS-2020- the biological, social, and economic 0098, click the ‘‘Comment Now!’’ icon, conditions of the Pacific coast National Oceanic and Atmospheric complete the required fields, and enter groundfish fishery and use this Administration or attach your comments. The exempted information to develop harvest fishing permit (EFP) applications will be specifications and management 50 CFR Part 660 available under Supporting Documents measures at least biennially. This [Docket No. 200928–0257] through the same link. proposed rule is based on the Council’s • Mail: Submit written comments to final recommendations for harvest RIN 0648–BJ74 Barry Thom, Regional Administrator, specifications and management West Coast Region, NMFS, 7600 Sand measures for the 2021–22 biennium Magnuson-Stevens Act Provisions; Point Way NE, Seattle, WA 98115–0070. made at its April and June 2020 Fisheries Off West Coast States; Instructions: NMFS may not consider meetings. Pacific Coast Groundfish Fishery; comments if they are sent by any other The Council deemed the proposed Pacific Coast Groundfish Fishery method, to any other address or regulations necessary and appropriate to Management Plan; Amendment 29; individual, or received after the implement these actions in an August, 2021–22 Biennial Specifications and comment period ends. All comments 26, 2020, letter from Council Executive Management Measures received are a part of the public record Director, Chuck Tracy, to Regional AGENCY: National Marine Fisheries and NMFS will post for public viewing Administrator Barry Thom. Under the Service (NMFS), National Oceanic and on www.regulations.gov without change. Magnuson-Stevens Fishery Atmospheric Administration (NOAA), All personal identifying information Conservation and Management Act Commerce. (e.g., name, address, etc.), confidential (Magnuson-Stevens Act), NMFS is business information, or otherwise ACTION: Proposed rule; request for required to publish proposed rules for comments. sensitive information submitted comment after preliminarily voluntarily by the sender is publicly determining whether they are consistent SUMMARY: This proposed rule would accessible. NMFS will accept with applicable law. We are seeking establish the 2021–22 harvest anonymous comments (enter ‘‘N/A’’ in comment on the proposed regulations in specifications for groundfish taken in the required fields if you wish to remain this action and whether they are the U.S. exclusive economic zone off the anonymous). consistent with the PCGFMP, the coasts of Washington, Oregon, and Electronic Access Magnuson-Stevens Act and its National California, consistent with the Standards, and other applicable law. Magnuson-Stevens Fishery This rule is accessible via the internet Concurrent with this proposed rule, Conservation and Management Act and at the Office of the Federal Register NMFS also published a Notice of the Pacific Coast Groundfish Fishery website at https:// Availability (NOA) to announce the Management Plan (PCGFMP). This www.federalregister.gov/. Background proposed Amendment 29 to the proposed rule would also revise the information and documents including PCGFMP. The NOA requests public management measures that are intended an integrated analysis for this action review and comment on proposed to keep the total annual catch of each (Analysis), which addresses the changes to the Council fishery groundfish stock or stock complex statutory requirements of the Magnuson management plan document (85 FR within the annual catch limits. These Stevens Fishery Conservation and 54529; September 2, 2020). proposed measures are intended to help Management Act (Magnuson-Stevens A. Specification and Management prevent overfishing, rebuild overfished Act), the National Environmental Policy Measure Development Process stocks, achieve optimum yield, and Act, Presidential Executive Order ensure that management measures are 12866, and the Regulatory Flexibility The Northwest Fisheries Science based on the best scientific information Act are available at the NMFS West Center (NWFSC) conducted full stock available. Additionally, this proposed Coast Region website at http:// assessments in 2019 for 7 of the 128 rule announces the receipt of exempted www.westcoast.fisheries.noaa.gov/ stocks 1 currently included under the fishing permit applications. NMFS has fisheries/groundfish/index.html and at PCGFMP as stocks that require made a preliminary determination that the Pacific Fishery Management conservation and management (cabezon, these applications warrant further Council’s website at http:// big skate, longnose skate, sablefish, consideration. NMFS requests public www.pcouncil.org. The final 2020 Stock cowcod, gopher rockfish, and black-and- comment on these applications. This Assessment and Fishery Evaluation yellow rockfish). Additionally, the action also would implement (SAFE) report for Pacific Coast NWFSC reviewed assessment updates Amendment 29 to the PCGFMP, which groundfish, as well as the SAFE reports for Petrale sole and widow rockfish, as would designate shortbelly rockfish as for previous years, are available from well as catch-only assessment updates an ecosystem component species, and the Pacific Fishery Management for a number of previously assessed would make changes to the trawl/non- Council’s website at http:// stocks (black rockfish, blackgill rockfish, trawl allocations for blackgill rockfish www.pcouncil.org. California blue/deacon rockfish north of within the southern slope complex FOR FURTHER INFORMATION CONTACT: Point Conception, canary rockfish, south of 40°10′ North latitude (N lat.), Karen Palmigiano, phone: 206–526– China rockfish, darkblotched rockfish, petrale sole, lingcod south of 40°10′ N 4491 or email: karen.palmigiano@ Dover sole, lingcod, longspine lat., and widow rockfish. noaa.gov. thornyheads, rougheye and blackspotted rockfishes, and shortspine thornyhead). DATES: Comments must be received no SUPPLEMENTARY INFORMATION: later than November 2, 2020. The NWFSC did not update assessments ADDRESSES: Submit your comments, I. Background for the remaining stocks, so harvest identified by NOAA–NMFS–2020–0098, Chapter 5 of the Pacific Coast 1 by either of the following methods: Groundfish Fishery Management Plan Stocks for which annual catch limits (ACLs) or • ACL contributions to stock complex ACLs are Federal e-Rulemaking Portal: Go to (PCGFMP) requires the Pacific Fishery calculated. Assessments do not include stocks www.regulations.gov/ Management Council (Council) to assess designated as ecosystem component species.

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specifications for these stocks are based scientific information available to category three represents the lowest. on assessments from previous years. determine the future biennium’s harvest Category one stocks are the relatively The full stock assessments used to set specifications. NMFS implements few stocks for which the NWFSC can catch limits for this biennium are harvest specifications based on the conduct a ‘‘data rich’’ quantitative stock available on the Council website default harvest control rules used in the assessment that incorporates catch-at- (https://www.pcouncil.org/). previous biennium unless the Council age, catch-at-length, or other data. The The Council’s stock assessment makes a recommendation to deviate SSC can generally calculate OFLs and review panel (STAR panel) reviewed the from the default. Therefore, this rule overfished/rebuilding thresholds for stock assessments, including implements the default harvest control these stocks, as well as ABCs, based on assessments on stocks for which some rules, consistent with the last biennium the uncertainty of the biomass estimated biological indicators are available, as (2019–20), for most stocks, and within an assessment or the variance in described below, for technical merit, discusses Council-recommended biomass estimates between assessments and to determine that each stock departures from the defaults. The for all stocks in this category. The set of assessment document was sufficiently Analysis supporting this action category two stocks includes a large complete. Finally, the Council’s identifies the preferred harvest control number of stocks for which some Scientific and Statistical Committee rules, management measures, and other biological indicators are available, yet (SSC) reviewed the stock assessments management changes that were not status is based on a ‘‘data-moderate’’ and STAR panel reports and made its described in the 2015 EIS, and will be quantitative stock assessment. The recommendations to the Council posted on the NMFS West Coast Region category three stocks include minor (Agenda Item H.5, September 2019 web page (see Electronic Access). stocks which are caught, but for which Council Meeting). Information regarding the OFLs, there is, at best, only information on The Council considered the new stock ABCs, and ACLs proposed for landed biomass. For stocks in this assessments, stock assessment updates, groundfish stocks and stock complexes category, there is limited data available catch-only updates, public comment, in 2021–22 is presented below, followed for the SSC to quantitatively determine recommendations from the SSC, and by a discussion of the proposed MSY, OFL, or an overfished threshold. advice from its advisory bodies over the management measures for commercial Typically, catch-based methods (e.g., course of six Council meetings during and recreational groundfish fisheries. depletion-based stock reduction development of its recommendations for analysis, depletion corrected average the 2021–22 harvest specifications and II. Proposed Harvest Specifications catch, and average catches) are used to management measures. At each Council This proposed rule would set 2021–22 determine the OFL for category three meeting between June 2019 and June harvest specifications and management stocks. A detailed description of each of 2020, the Council made a series of measures for 127 of the 128 groundfish these categories can be found in Section decisions and recommendations that stocks which currently have ACLs or 4.2 of the PCGFMP. were, in some cases, refined after further ACL contributions to stock complexes A. Proposed OFLs for 2021 and 2022 analysis and discussion. Table 2 in the managed under the PCGFMP, except for Analysis describes the Council’s Pacific whiting. Pacific whiting harvest The OFL serves as the maximum meeting schedule for developing the specifications are established annually amount of fish that can be caught in a 2021–22 biennial harvest specifications. through a separate bilateral process with year without resulting in overfishing. Additionally, detailed information, Canada. Shortbelly rockfish, which is Overfishing occurs when a stock has a including the supporting documentation currently managed with harvest harvest rate, denoted as Fx%, is set the Council considered at each meeting, specifications, would no longer be higher than the rate that produces the is available at the Council’s website, managed with harvest specifications stock’s MSY. The SSC derives OFLs for www.pcouncil.org. beginning in the 2021–22 biennium and groundfish stocks with stock The 2021–22 biennial management would instead be classified as an assessments by applying the harvest rate cycle was the third cycle following ecosystem component species. The to the current estimated biomass (B). PCGFMP Amendment 24 (80 FR 12567, change to shortbelly management is Harvest rates represent the rates of , 2015), which established made through Amendment 29 to the fishing mortality (F) that will reduce the default harvest control rules and was PCGFMP and is discussed in detail in female spawning potential ratio (SPR) to analyzed through an Environmental the NOA for that amendment. Public X percent of its unfished level. As an Impact Statement (EIS) (Final comment is open on the NOA (see example, a harvest rate of F40% is more Environmental Impact Statement for ADDRESSES). aggressive than F45% or F50% harvest Pacific Coast Groundfish Harvest The proposed OFLs, ABCs, and ACLs rates because F40% allows more fishing Specifications and Management are based on the best available mortality on a stock (as it allows a Measures for 2015–2016 and Biennial biological and socioeconomic data, harvest rate that would reduce the stock Periods Thereafter, and Amendment 24 including projected biomass trends, to 40 percent of its unfished level). The to the PCGFMP, published January information on assumed distribution of OFL does not account for scientific or 2015). The EIS described the ongoing stock biomass, and revised technical management uncertainty, so the SSC implementation of the PCGFMP and methods used to calculate stock typically recommends an ABC that is default harvest control rules, along with biomass. The PCGFMP specifies a series lower than the OFL in order to account 10-year projections for harvest of three stock categories for the purpose for this uncertainty. Usually, the greater specifications and a range of of setting maximum sustainable yield the amount of scientific uncertainty, the management measures. Under (MSY) 2, OFLs, ABCs, ACLs, and lower the ABC is set compared to the Amendment 24, the default harvest rebuilding standards. Category one OFL. control rules used to determine the For 2021–22, the Council maintained represents the highest level of previous biennium’s harvest its policy of using a default harvest rate information quality available, while specifications (i.e., overfishing limits as a proxy for the fishing mortality rate [OFLs], acceptable biological catches 2 MSY is the largest long-term average catch that that is expected to achieve FMSY. The (ABCs), and annual catch limits [ACLs]) can be taken from a fish stock under prevailing Council also maintained the same are applied automatically to the best environmental and fishery conditions. default harvest rate proxies as used in

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the 2019–20 biennium, based on the B. Proposed ABCs for 2021 and 2022 2010; 76 FR 27508, , 2011) and SSC’s recommendations: F30% for The ABC is the stock or stock 2013–14 (77 FR 67974, , flatfish (meaning an SRP harvest rate complex’s OFL reduced by an amount 2012; 78 FR 580, January 3, 2013) that would reduce the stock to 30 associated with scientific uncertainty. biennial harvest specifications and percent of its unfished level), F50% for The SSC-recommended P star-sigma management measures. rockfish (including longspine and approach determines the amount by The SSC recently endorsed new s shortspine thornyheads), F for 50% which the OFL is reduced to account for values that increase the scientific elasmobranchs, and F for other 45% this uncertainty. Under this approach, uncertainty estimate and reduce the groundfish such as sablefish and the SSC recommends a sigma (s) value. lingcod. For unassessed stocks, the proposed ABCs and ACLs relative to The s value is generally based on the what they could have been under the s Council recommended using a historical scientific uncertainty in the biomass and P* values used in the previous catch-based approach (e.g., average estimates generated from stock biennium. The new s values, endorsed catch, depletion-corrected average assessments and is usually related to the catch, or depletion-based stock stock category. After the SSC determines by the Council at its March 2019 reduction analysis) to set the OFL. See the appropriate s value, the Council meeting, include a new base reduction Tables 1a and 2a to Part 660, Subpart C chooses a P star (P*) based on its chosen for Category 1 stocks of 0.5 and an in the proposed regulatory text level of risk aversion considering the increase in the buffer between the OFL supporting this rule for the proposed scientific uncertainties. A P* of 0.5 and ABC as the age of the assessment 2021–22 OFLs. equates to no additional reduction for increases. Currently, s is the same for A detailed description of the scientific scientific uncertainty beyond the s each year regardless of the age of the basis for all of the SSC-recommended value reduction. The PCGFMP specifies assessment. Table 1 provides the s OFLs proposed in this rule is included that the upper limit of P* will be 0.45. values used in previous biennium and in the SAFE document for 2020, The P*-sigma approach is discussed in the new s values with a higher base year available at the Council’s website, detail in the proposed and final rules for deduction and progressively increasing www.pcouncil.org. the 2011–12 (75 FR 67810, , s values with the age of the assessment.

Based on the new methodology, the data-rich stock assessments. Assuming 2015–16, 2017–18, and 2019–20, the SSC quantified major sources of the same P* is applied, a larger s value Council recommended using P* values scientific uncertainty in the estimates of results in a larger reduction from the of 0.45 for all individually managed OFLs and generally recommended a s OFL. For 2021–22, the Council category one stocks, except sablefish value of 0.5 for category one stocks continued the general policy of using and yelloweye rockfish. Combining the (previously 0.36), a s value of 1.0 for the SSC-recommended s values for each category one s value of 0.5 with the P* category two stocks (previously 0.72), stock category. value of 0.45 results in a reduction of and a s value of 2.0 for category three For 2021–22, the Council maintained 6.1 percent from the OFL when deriving stocks (previously 1.44). For category the P* policies it established for the the ABC. For category two stocks, the two and three stocks, there is greater previous biennium for most stocks, Council’s general policy was to apply a scientific uncertainty in the OFL except Oregon black rockfish, cowcod P* of 0.4, with a few exceptions. The estimate because the assessments for south of 40°10′ N lat., sablefish, and Council recommended applying a P* of these stocks are informed by less data shortbelly rockfish. The Council 0.45 for big skate, cowcod south of than the assessments for category one considered alternative P* values for 34°27′ N lat., English sole, longnose stocks. Therefore, the scientific Petrale sole but ultimately decided to skate, Pacific ocean perch, and all of the uncertainty buffer is generally greater stay with the default P* value used in stocks managed in the Oregon blue/ than that recommended for stocks with the previous biennium. As was done in deacon/black rockfish complex,

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Nearshore Rockfish complexes, and the threshold. When the biomass for an The PCGFMP defines the 40–10 Other Fish complex. When combined assessed category one or two stock falls harvest control rule for stocks with a with the s values of 1.00 for category below BMSY, the ACL is set below the BMSY proxy of B40% that are in the two, a P* value of 0.45 corresponds to ABC using a harvest rate reduction to precautionary zone as the standard an 11.8 percent reduction and a P* help the stock return to the BMSY level, reduction. The analogous harvest value of 0.40 corresponds to a 22.4 which is the management target for control rule with the standard reduction percent reduction. For category three groundfish stocks. If a stock biomass is for assessed flatfish stocks is the 25–5 stocks, the Council’s general policy was larger than BMSY, the ACL may be set harvest control rule for flatfish stocks to apply a P* value of 0.45 for these equal to the ABC, or the ACL may be set with a BMSY proxy of B25%. The further stocks, except the Council below the ABC to address conservation the stock biomass is below the recommended a P* value of 0.40 for objectives, socioeconomic concerns, precautionary threshold, the greater the cowcod between 40°10′ N lat. and management uncertainty, or other reduction in ACL relative to the ABC, ° ′ 34 27 N lat., Pacific cod, starry factors necessary to meet management until at B10% for a stock with a BMSY flounder, and all stocks in the Other objectives. The overfished/rebuilding proxy of B40%, or B5% for a stock with Flatfish complex. When combined with threshold is 25 percent of the estimated a BMSY proxy of B25%, the ACL would the s values of 2.00 for category three, unfished biomass level for non-flatfish be set at zero. a P* value of 0.45 corresponds to 22.2 stocks or 50 percent of BMSY, if known. Under the PCGFMP, the Council may percent reduction and a P* value of 0.40 The overfishing/rebuilding threshold for corresponds to a 39.8 percent reduction. recommend setting the ACL at a flatfish stocks is 12.5 percent of the different level than what the default See Tables 1–3 in Agenda Item H.8, estimated unfished biomass level. When Supplemental Attachment 2, September harvest control rules specify as long as a stock is below BMSY (the precautionary the ACL does not exceed the ABC and 2019 Council meeting for the full threshold) but above the overfishing/ description of s and P* values by stock. complies with the requirements of the rebuilding threshold, it is considered to Magnuson-Stevens Act (see Chapter 8 of See Tables 1a and 2a to Part 660, be in the precautionary zone. Subpart C in the in the proposed the analysis for information on the regulatory text of this proposed rule for Under PCGFMP Amendment 24, the Magnuson-Stevens Act and other the proposed 2021–22 ABCs. Council set up default harvest control applicable laws). For most of the stocks rules, which established default policies and all the stock complexes managed C. Proposed ACLs for 2019 and 2020 that would be applied to the best with harvest specifications for 2021–22, The Council recommends ACLs for available scientific information to set the Council chose to maintain the each stock and stock complex that is in ACLs each biennial cycle, unless the default harvest control rules from the need of conservation and management Council has reasons to diverge from that previous biennial cycle. For four stocks, or ‘‘in the fishery,’’ as defined in the harvest control rule. A complete Oregon Black rockfish, cowcod south of PCGFMP. To determine the ACL for description of the default harvest 40°10′ N lat., sablefish, and shortbelly each stock, the Council will determine control rules for setting ACLs is rockfish, the Council recommended the best estimate of current stock described in the proposed and final rule deviating from the default harvest abundance and its relation to the for the 2015–16 harvest specifications control rule. Table 2 presents a precautionary and overfished/rebuilding and management measures and summary table of the proposed changes thresholds. Under the PCGFMP, the PCGFMP Amendment 24 (80 FR 687, to default harvest control rules for biomass level that produces MSY, or , 2015; 80 FR 12567, March 10, certain stocks for 2021–22. Each of these BMSY, is defined as the precautionary 2015). changes is discussed further below.

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Cowcod South of 40°10′ N Lat. uncertainty in the estimated biomass first assessed as a single stock in 2015. A new cowcod assessment conducted and productivity in the cowcod In 2019, the Oregon black rockfish stock by the NWFSC in 2019 indicated the assessment due to a lack of adequate was estimated to be at 56 percent of its stock south of 40°10′ N lat. had data (particularly age data) for unfished spawning output. For 2021–22, transitioned from a rebuilding stock to estimating growth, natural mortality, the NWFSC conducted a catch-only a stock with current depletion estimate and recruitment. The revised P* value update to the 2015 assessment by at the start of 2019 of 57 percent of of 0.40 is consistent with other category adding realized catch data from 2015– unfished spawning output (Agenda Item two stocks. See Section 2.2.2.2 of the 2018 and estimates of catch for 2019 H.5. Attachment 9, September 2019), Analysis for more information on the and 2020. In Oregon, realized catches which is far above the precautionary Council’s consideration of alternative were closer to projected catches in threshold of 50 percent. When a stock harvest specifications for cowcod south ° ′ 2015–2017, but lower in 2018 resulting is determined to be rebuilt, its harvest of 40 10 N lat. in OFL projections for 2021 and 2022 control rule automatically reverts back The resulting ACLs would increase by that are slightly higher than the to the default harvest control rule for the more than eight times the amount in projections in the previous assessment. next biennium. For the 2021–22 place in 2019 (10 mt). As an additional In addition to the catch data update, the ° ′ precaution due to the uncertainty in the biennium, cowcod south of 40 10 N lat. SSC applied the newly endorsed s assessment, the Council also was the only stock declared rebuilt. values to each year in the forecast (as Consistent with the Council’s recommended, and NMFS is proposing, discussed above in B. Proposed ABCs preferred alternative, this action an ACT of 50 mt for cowcod south of for 2021 and 2022). Because Oregon proposes that the cowcod south of 40°10′ N lat. The ACT is a management 40°10′ N lat. ACL would be set equal to measure and is discussed further in black rockfish is a category two stock, a the ABC with a P* of 0.4, resulting in Section III of this preamble. base s value of 1.0 was applied to years 2021–2030 (Table 1–2 in Agenda Item ACLs of 84 mt in 2021 and 82 mt in Oregon Black Rockfish 2022. The Council recommended a H.5, Attachment 15, September 2019). lower P* value for cowcod south of Oregon black rockfish is a category Black rockfish was last assessed in 2015, 40°10′ N lat. than what would have been two stock, managed as part of the so the stock is also subject to further s applied under the default P* value (P* Oregon blue/deacon/black rockfish value reductions. However, the Council = 0.45) to address the relatively high complex. Oregon black rockfish was recommended and NMFS is proposing a

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phased-in approach to incorporating the 2016 year class. Now that sablefish north and south would be 6,172 mt and this additional ABC reduction. biomass is projected to be above BMSY, 2,203 mt, respectively. Black rockfish is the primary target for the Council considered alternative Therefore, the Council recommended, the Oregon recreational and commercial harvest specifications for the 2021–22 and NMFS is proposing, to implement nearshore fisheries. In 2017, Oregon biennium. an alternative harvest control rule for recreational fisheries were shut down Additionally, the Council sablefish for the 2021–22 biennium. The early because of black rockfish recommended revising the alternative harvest control rule would concerns, and the Council received apportionment of the ACL north and set the ABC equal to the ACL with a P* public testimony as to the severe south 36° N Lat. Each biennium, the value of 0.45 resulting in ACLs that are negative consequences for charter coastwide sablefish ABC is apportioned higher than under the Council’s No business operators and tourist-revenue to ACLs for the areas north and south Action default harvest control rule for dependent coastal communities of 36° N Lat. based on a percentage. In sablefish. resulting from this closure. Due to the 2019–20, the Council used the average Shortbelly Rockfish constraining nature of black rockfish in swept area biomass from the trawl Oregon and the biomass level being survey to determine this percentage. Shortbelly rockfish has been a topic of above the precautionary threshold, the However, for the 2021–22 biennium, the discussion on every Council agenda Oregon Department of Fish and Wildlife Council recommended updating its beginning in November 2018 due to (ODFW) requested the Council consider methods for determining this percentage higher than anticipated bycatch in an alternative for the 2021–22 biennium and will now be using a rolling 5-year recent years. Shortbelly rockfish is where the 2020 ABC (512 mt) is average of the swept area biomass currently a species managed within the specified for 2021 and 2022, and the instead of the long-term average. This PCGFMP in section 3.1 of the PCGFMP ACLs are set equal to ABCs. The results in an increase in the percentage and directed fishing is allowed even Magnuson-Stevens Act and the of the sablefish apportioned north of 36° though it is not the target of a directed PCGFMP allow the SSC to recommend N Lat. ACL from 73.7 percent to 78.4 fishery. an ABC that differs from the ABC percent and a decrease in the percentage As part of the 2021–22 biennium, the control rule on a case by case basis, of the sablefish apportioned south of 36° Council recommended and NMFS is provided the SSC offers justification for N Lat. ACL from 26.3 percent to 21.5 proposing to reclassify shortbelly its recommended deviation. In 2023, the percent. The change in apportionment rockfish as an ecosystem component current default harvest control rule of the north and south sablefish ACLs is species through Amendment 29 to the (ABC = ACL, P* of 0.45) would once expected to result in higher attainment PCGFMP. For more information on this again apply to Oregon black rockfish. In of both of the ACLs and should better reclassification, see the NOA for this case, long-term projections under align with recent catches by area. Amendment 29 (see ADDRESSES). the Council’s default harvest control Under the default harvest control rule, Stocks in Rebuilding Plans rule and the alternative 2021 and 2022 the ABC would be set equal to the ACL ABC both result in a projected stock with a P* value of 0.4. The P* value of When a stock has been declared biomass at 54 percent of its unfished 0.4 was set when the unfished spawning overfished, the Council must develop spawning output in 2030. Stocks with output was below 40 percent. Under a and manage the stock in accordance biomass estimates greater than 40 P* value of 0.4, the unfished spawning with a rebuilding plan. For overfished percent depletion are above the output is estimated to be at 46 percent stocks in the PCGFMP, this means that precautionary thresholds in the in 2021 and 47 percent by 2030 the harvest control rule for overfished PCGFMP. Because the biomass is the assuming full ACL removals each year. stocks sets the ACL based on the same under either option, the SSC The ACLs would no longer be subject to rebuilding plan. The proposed rules for recommended the alternative 2021 and the 40–10 rule reduction because the the 2011–12 (75 FR 67810, November 3, 2022 ABC. stock would be above the BMSY proxy in 2010) and 2013–14 (77 FR 67974, Therefore based on the Analysis, the 2021 and would therefore be set equal , 2012) harvest Council has recommended and NMFS is to the ABC. The ACLs under the default specifications and management proposing alternative harvest harvest control rule and the revised measures contain extensive discussions specifications for Oregon black rockfish apportionment percentages would be on the management approach used for as part of the Oregon blue/deacon/black 6,435 mt for north of 36° N Lat. and overfished stocks, which are not rockfish complex. The alternative 1,773 mt for south of 36° N Lat. in 2021. repeated here. In addition, the SAFE harvest control rule would implement In 2022, the ACL would be 6,124 mt for document posted on the Council’s an ACL for the 2021 and 2022 biennium north of 36° N Lat. and 1,687 mt for website at http://www.pcouncil.org/ of 512 mt in each year. This ACL south of 36° N Lat. groundfish/safe-documents/ contains a contributes to the overall stock complex Based on the 2019 sablefish stock detailed description of each overfished ACL. assessment, the Council recommended stock, its status and management, as an alternative harvest specifications for well as the SSC’s approach for Sablefish sablefish using a P* value of 0.45 for the rebuilding analyses. This document The NWFSC completed a full stock 2021–22 biennium. Under the increased provides information on cowcod south assessment for sablefish in 2019 P* value, the unfished spawning output of 40°10′ N lat., which has rebuilt since (Agenda Item H.5. Attachment 7, is estimated to be at 46 percent in 2021 the last biennium, and yelloweye September 2019). In 2019, the sablefish and 44 percent by 2030, assuming full rockfish which is the only remaining stock is estimated to be at 39 percent of ACL removals each year. No reduction rebuilding stock in the PCGFMP. The unfished spawning output. However, to the ACL would be necessary, similar Council proposed yelloweye rockfish biomass is projected to increase, and the to the default, because the stock’s ACLs for 2021 and 2022 based on the spawning output is projected to be unfished spawning output is above 40 current yelloweye rockfish rebuilding above the precautionary threshold (B40) percent. Therefore, under the P* value plan, so additional details are not in 2021. The expected increase in of 0.45, the 2021 ACLs for the north and repeated here. Appendix F to the biomass is driven in part by the south would be 6,479 mt and 2,312, mt, PCGFMP contains the most recent estimated, but highly uncertain, size of respectively. The 2022 ACLs for the rebuilding plan parameters, as well as a

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history of each overfished stock, and Additionally, the Council Oregon and California and are subject to can be found at http:// recommended, and NMFS is proposing, both Federal and state HGs as well as www.pcouncil.org/groundfish/ to establish annual catch targets (ACTs) other state-specific management fisherymanagement-plan/. within the nontrawl allocation harvest measures. The non-nearshore fisheries Yelloweye rockfish was declared guideline (HG). The nontrawl sector include the limited entry and Federal overfished in 2002. The Council includes the limited entry fixed gear open access fixed gear fleets. Tables 3 adopted a rebuilding plan for the stock (LEFG) and open access (OA) fisheries and 4 outline the proposed harvest in 2004, and revised the rebuilding plan as well as the recreational fisheries for specifications for 2021 and 2022 for in 2011 under Amendment 16–4 to the Washington, Oregon, and California. yelloweye rockfish. PCGFMP, and again during the 2019–20 The nearshore fisheries occur off of biennium.

The Council recommended using Under this proposed rule, nine stocks Washington’s cabezon/kelp greenling, ACTs for the nontrawl sector as a would have higher ACLs in 2021 and has an ACL that would increase by 92.3 precaution. As discussed in the 2022 than in 2019. Of the 43 stocks and percent. These increases are due to new Analysis, because yelloweye rockfish stock complexes managed with ACLs in information provided in the 2019 stock catch has been restricted for many years, 2020, 21 stocks have ACLs that would assessments for these stocks. The ACL it is difficult to project encounter rates. decrease in 2021 from 2020 and 12 for the shelf rockfish north complex This precautionary approach to higher stocks have ACLs that would be close to would decrease by 26.5 percent, which catch limits would allow more access to the amount in place in 2020 (Table 4.6 is the largest ACL decrease between target fisheries for the nontrawl sector, of the Analysis). Shortbelly rockfish are 2020 and 2021, followed by the ACL for while also managing for the uncertainty proposed to be no longer be managed arrowtooth flounder, which would and volatility in catch of this rebuilding with an ACL and one stock, Pacific cod, decrease by 22.1 percent. These stock by this sector. would have the same ACLs in 2020, decreases are due to updated projections D. Summary of ACL Changes From 2019 2021, and 2022. Two stocks (big skate based on the new sigma values. to 2021–22 and cowcod south of 40°10′ N lat.) have Table 5 compares the ACLs for major ACLs that would increase more than stocks for 2019, 2020, and 2021–22. 100 percent, and one stock complex,

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III. Proposed Management Measures A. Deductions From the ACLs B. Tribal Fisheries This section describes proposed Before making allocations to the The Quileute Tribe, Quinault Indian management measures (i.e., biennial primary commercial and recreational Nation, Makah Indian Tribe, and Hoh components of groundfish fisheries, the fishery harvest guidelines and set- Indian Tribe (collectively, ‘‘the Pacific Council recommends ‘‘off-the-top asides) used to further allocate the ACLs deductions,’’ or deductions from the Coast Tribes’’) implement management to the various components of the fishery ACLs to account for anticipated measures for Tribal fisheries both and control fishing. Management mortality for certain types of activities: independently as sovereign measures for the commercial fishery Harvest in Pacific Coast treaty Indian governments and cooperatively with the modify fishing behavior during the tribal fisheries; harvest in scientific management measures in the Federal fishing year to ensure that catch does research activities; harvest in non- regulations. The Pacific Coast Tribes not exceed the ACL, and include trip groundfish fisheries (incidental catch); may adjust their Tribal fishery and cumulative landing limits, time/ and harvest that occurs under EFPs. management measures inseason to stay area closures, size limits, and gear These off-the-top deductions are within the Tribal harvest targets and restrictions. Management measures for proposed for individual stocks or stock estimated impacts to overfished stocks. the recreational fisheries include bag complexes and can be found in the Table 6 provides the proposed Tribal limits, size limits, gear restrictions, fish footnotes to Tables 1a and 2a to part harvest targets proposed for the 2021–22 dressing requirements, and time/area 660, subpart C. The details of the EFPs biennium. closures. are discuss below in Section III., J.

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The Pacific Coast Tribes proposed trip because the stock is declared overfished. information on the Council’s allocation limit management in Tribal fisheries for As part of the 2021–22 biennium, the framework and formal allocations can 2021–22 for several stocks, including Council also decided to revise the 2-year be found in Section 6.3 of the PCGFMP several rockfish stocks and stock allocations for canary rockfish, as well and § 660.55 of the Federal regulations. complexes. This rule proposes the trip as Petrale sole, widow rockfish, lingcod Allocations described below are limits for Tribal fisheries as provided to south of 40°10′ N lat., and the slope detailed in the harvest specification the Council at its April 2020 meeting in rockfish complex south of 40°10′ N lat., tables appended to 50 CFR part 660, Supplemental Tribal Report 1, Agenda which were established through subpart C, in the regulatory text of this Item G.6.a. For rockfish stocks, Tribal Amendment 21 to the PCGFMP (75 FR proposed rule. regulations will continue to require full 32993, June 10, 2010), to better align The Council’s recommended and retention of all overfished rockfish these allocations with current harvest NMFS’ proposed allocations are shown stocks and marketable non-overfished trends. The changes to these allocations Tables 1b and 2b in the proposed rockfish stocks. The Pacific Coast Tribes are proposed as part of Amendment 29 regulatory text for this proposed rule will continue to develop management to the PCGFMP (see I. Background). and summarized below. measures, including depth, area, and The trawl and nontrawl allocations, Big Skate time restrictions, in the directed Tribal with the exception of sablefish north of Pacific halibut fishery in order to 36° N lat., are based on the fishery The Council recommended and minimize incidental catch of yelloweye harvest guideline. The fishery harvest NMFS is proposing the allocations rockfish. guideline is the tonnage that remains shown in Table 7 for big skate in 2021 C. Biennial Fishery Allocations after subtracting the off-the-top and 2022. These allocations are deductions described in Section III., A, anticipated to accommodate estimates of The Council routinely recommends 2- entitled ‘‘Deductions from the ACLs,’’ in mortality of big skate, by sector, in year trawl and nontrawl allocations this preamble. The trawl and nontrawl 2021–22. Allocations of big skate are during the biennial specifications allocations and recreational harvest determined on a biennial basis. For process for stocks without formal guidelines are designed to accommodate 2021–22, the Council elected to allocations (as defined in Section 6.3.2 anticipated mortality in each sector as maintain the current big skate split of 95 of the PCGFMP) or stocks where the well as variability and uncertainty in percent to the trawl fishery and 5 long-term allocation is suspended those mortality estimates. Additional percent to the non-trawl fishery

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resulting in a trawl allocation of 1,348.7 in 2021 and 2022. No further allocations mt and a non-trawl allocation of 71 mt or deductions are made.

Bocaccio South of 40°10′ N Lat. accommodate estimates of mortality of the commercial (nearshore and non- bocaccio, by sector, in 2021–22. In each nearshore fisheries) and California Specifications for bocaccio are year, the fishery harvest guideline is recreational fisheries. In 2021, the determined through the biennial split with 39 percent going to the trawl commercial sector would receive 30.9 specifications process. For 2021–22, the sectors and 61 percent to the non-trawl percent of the non-trawl allocation or Council recommended and NMFS is sectors. For the trawl sector this results 320.2 mt, and the California recreational proposing the allocations shown in in an allocation of 663.8 mt in 2021 and sector would receive 716.2 mt. In 2022, Table 8 for bocaccio in 2021 and 2022, 654.4 mt in 2022. The non-trawl sectors the same percentage would remain in which maintain the allocation structure would receive 1,036.4 mt in 2021 and place with the commercial sector from the previous biennium. These 1,021.8 mt in 2022. The non-trawl receiving 315.7 mt and the California allocations are anticipated to allocation is then distributed between recreational sector receiving 706.1 mt.

Canary Rockfish fishery harvest guideline is distributed (43.2 mt), OR recreational (65 mt), and to the trawl and non-trawl sectors with CA recreational (116.7 mt) fisheries. In The Council recommended and trawl receiving 72.3 percent and non- 2022, the trawl sector would receive NMFS is proposing the allocations in trawl sectors receiving 27.7 percent each 894.6 mt of canary rockfish, of which 36 Table 9 for canary rockfish in 2021 and year. In 2021, the trawl sector would mt would be deducted to account for 2022, which maintain the status quo receive 917 mt of canary rockfish, of bycatch in the at-sea sectors, and the proportions from the 2017–18 which 36 mt would be deducted to remaining 858.6 mt would be biennium, but also combine the account for bycatch in the at-sea sectors, distributed to the shorebased IFQ sector. commercial fixed gear harvest guideline and the remaining 881.2 mt would be The non-trawl sector would receive for the nearshore and non-nearshore distributed to the shorebased individual 343.1 mt, which is distributed to the fisheries. These allocations are fishing quota (IFQ) sector. The non- commercial nontrawl sector (123.5 mt), anticipated to accommodate estimates of trawl sector would receive 351.4 mt WA recreational (42.2 mt), OR mortality of canary rockfish, by sector, which is distributed to the commercial recreational (63.5 mt), and CA in 2021–22. For canary rockfish, the nontrawl (126.5 mt), WA recreational recreational (113.9 mt) fisheries.

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Cowcod 2019–20 bienniums. The ACT would be trawl sectors, with the trawl sector allocated across groundfish fisheries. receiving 36 percent and the non-trawl For 2021–22, the Council Table 9 shows the trawl/nontrawl sector receiving 64 percent each year. In recommended and NMFS is proposing allocations for cowcod for 2021 and 2021 and 2022, the trawl sector would setting a cowcod ACT below the fishery 2022. NMFS anticipates the proposed receive 18 mt of cowcod. The non-trawl harvest guideline at 50 mt, and having allocation structure will keep catch sector would receive 32 mt, which is it function as a fishery harvest guideline below the 2021–22 cowcod ACT. The distributed to the commercial and similar to the ACT in the 2017–18 and ACT is distributed to the trawl and non- recreational sectors as a 50/50 split.

Lingcod South of 40°10′ N Lat. 22 biennium, the Council recommended guideline for lingcod south of 40°10′ N The Council recommended and revising the fixed percentages through lat. is allocated to the trawl sector and NMFS is proposing the trawl/nontrawl Amendment 29 to the PCGFMP to better 60 percent is allocated to the nontrawl allocations for lingcod south of 40°10′ N align with current catch levels and sector. In 2021, the distribution results lat. in Table 10. These allocations are provide some relief to the nontrawl in 435.6 mt to the trawl sector and 653.4 anticipated to accommodate estimates of sector which is usually constrained by mt to the non-trawl sectors. In 2022, the mortality of lingcod, by sector, in 2021– lingcod south of 40°10′ N lat. Therefore, distribution results in 463.6 mt to the 22. Specifications of lingcod south of beginning with the 2021–22 biennium, trawl sectors and 695.4 mt to the non- 40°10′ N lat. were established through the Council recommended and NMFS is trawl sectors. No further allocations or Amendment 21 with a trawl/non-trawl proposing changing trawl/non-trawl distributions are made. The NOA for allocation set at 45 percent to trawl and allocations of lingcod south of 40°10′ N Amendment 29 is available for public 55 percent to non-trawl. For the 2021– lat., so that 40 percent of the harvest comment (see ADDRESSES).

Longnose Skate percent to trawl and 10 percent to 2021–22. In 2021, the 90/10 distribution nontrawl, reflect historical catch of results in 1,414.4 mt to the trawl sectors The Council recommended and longnose skate in the two sectors. These and 157.2 mt to the non-trawl sectors. NMFS is proposing the trawl/nontrawl allocations are anticipated to In 2022, the distribution results in allocations for longnose skate in Table accommodate estimates of mortality of 1,358.6 mt to the trawl sectors and 151 11. The allocation percentages, 90 longnose skate rockfish, by sector, in mt to the non-trawl sectors.

Minor Shelf Rockfish and 2022 are shown in Table 12. to trawl sectors and 39.8 percent to non- Specifications for the shelf rockfish trawl sectors. In 2021, the distribution Allocations for Minor Shelf Rockfish complex north of 40°10′ N lat. were results in 864.2 mt to the trawl sectors are recommended by the Council and established through the biennial process and 571.4 mt to the non-trawl sectors. proposed by NMFS for each biennial with a trawl/non-trawl allocation for the In 2022, the distribution results in 827.5 cycle. The proposed allocations for 2021 2021–22 specifications of 60.2 percent mt to the trawl sectors and 547.1 mt to

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the non-trawl sectors. Of the amount fishery. No further allocations or trawl sectors. In 2021, the distribution going to the trawl sectors, 35 mt is distributions are made. results in 161.7 mt to the trawl sectors deducted each year from the trawl Specifications for the shelf rockfish and 1,163.6 mt to the non-trawl sectors. allocation to account for bycatch in the complex south of 40°10′ N lat. were In 2022, the distribution results in 160.5 at-sea whiting sectors, with the established through the biennial process mt to the trawl sectors and 1,154.8 mt remaining 829.2 mt in 2021 and 792.49 with a trawl/non-trawl allocation for the to the non-trawl sectors. No further mt in 2022 going to the shorebased IFQ 2021–22 specifications of 12.2 percent allocations or distributes are made. to trawl sectors and 87.8 percent to non-

Slope Rockfish Complex Council recommended the fixed trawl sectors and 152.1 mt to the non- allocation be revised through trawl sectors. In 2022, the distribution The slope rockfish complex south of Amendment 29 to the PCGFMP and results in 515.6 mt to the trawl sectors ° ′ 40 10 N lat. is a fixed allocation with made into a 2-year allocation, with and 142.1 mt to the non-trawl sectors. a trawl/non-trawl allocation of 63 custom shares for blackgill rockfish, to The NOA for Amendment 29 is open for percent to trawl and 37 percent to non- be reviewed each biennium. In 2021, the public comment (see ADDRESSES). trawl. For the 2021–22 biennium, the distribution results in 556.9 mt to the

Petrale Sole non-trawl fishery. As part of the 2021– remainder will go to the trawl sector 22 biennium, the Council recommended each year. This would shift around 150 The Council recommended and changing the fixed allocation to a and 130 mt to the shorebased IFQ sector NMFS is proposing the trawl/nontrawl biennial allocation through Amendment in 2021 and 2022, respectively, and allocations for Petrale sole in Table 14. 29 to the PCGFMP and revising the would not constrain the nontrawl These allocations are anticipated to percentages to better align with current sector. In 2021, the distribution results accommodate estimates of mortality of catch by sector. Therefore, beginning in in 3,697.9 mt to the trawl sector. In Petrale sole, by sector, in 2021–22. 2021, specifications for Petrale sole will 2022, the trawl sector would receive Petrale sole has a fixed allocation with be determined as part of the biennial 3,242.5 mt. The NOA for Amendment a trawl/non-trawl allocation of the specifications process. For the 2021–22 29 is open for public comment (see fishery harvest guideline of 95 percent biennium, 30 mt of Petrale sole will be ADDRESSES). to the trawl fishery and 5 percent to the allocated to the nontrawl sector and the

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Widow Rockfish fishery. As part of the 2021–22 to the nontrawl sector and the The Council recommended and biennium, and through Amendment 29 remainder will go to the trawl sector NMFS is proposing the trawl/nontrawl to the PCGFMP, the Council each year. This would shift just under allocations for Widow rockfish in Table recommended making it a biennial 1,000 mt of widow rockfish to the 15. These allocations are anticipated to allocation and providing a fixed amount shorebased IFQ sector in 2021 and 2022, accommodate estimates of mortality of to the nontrawl sector to better align and would not constrain the nontrawl widow rockfish, by sector, in 2021–22. with current catch by sector. Therefore, sector. In 2021, the distribution results Widow rockfish is an Amendment 21 beginning in 2021, specifications for in 14,076.7 mt to the trawl sector. In species with a trawl/non-trawl widow rockfish will be determined as 2022, the trawl sector would receive allocation of the fishery harvest part of the biennial specifications 13,139.7 mt. The NOA for Amendment guideline of 91 percent to the trawl process. For the 2021–22 biennium, 400 29 is open for public comment (see fishery and 9 percent to the non-trawl mt of widow rockfish will be allocated ADDRESSES).

D. Corrections to Waypoints for Rockfish For the 2021–22 biennium, the whiting sector with the remainder of the Conservation Areas Council recommended and NMFS is trawl allocation going to the shorebased proposing minor adjustments to the 40 IFQ sector. Set-asides are not managed Rockfish Conservation Areas (RCAs) fathom (fm) depth contour offshore of by NMFS or the Council except in the are large area closures intended to San Mateo in Central California, and the case of a risk to the ACL. reduce the catch of a stock or stock 100 fm depth contours off of California At-Sea Set Asides complex by restricting fishing activity at to more accurately refine the depth specific depths. The boundaries for contours, as well as the addition of a For several species, the trawl RCAs are defined by straight lines 100 fm line around the Channel Islands. allocation is reduced by an amount set- connecting a series of latitude and See Chapter 2 of the Analysis for more aside for the at-sea whiting sector. This longitude coordinates that approximate details on these changes. amount is designed to accommodate catch by the at-sea whiting sector when depth contours. These sets of E. Limited Entry Trawl coordinates, or lines, are not gear or they are targeting Pacific whiting. The fishery specific, but can be used in The limited entry trawl fishery is Council considered several proposals to combination to define an area. NMFS made up of the shorebased IFQ program, generate amounts for these set-asides. then implements fishing restrictions for whiting and non-whiting, and the at-sea After much discussion and analysis, the a specific gear and/or fishery within whiting sectors. For some stocks and Council is recommending and NMFS is each defined area. stock complexes with a trawl allocation, proposing the set-asides in Table 16 for an amount is first set-aside for the at-sea the 2021–22 biennium.

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Incidental Trip Limits for IFQ Vessels limit would be to allow the Council to fisheries, many of which are decades reduce targeting of blackgill rockfish old and do not reflect stocks rebuilding For vessels fishing in the Shorebased inseason, if needed. Trip limits for the in previous biennium and management IFQ Program, with either groundfish IFQ fishery can be found in Table 1 changes (e.g., stock complex trawl gear or nontrawl gears, the North and Table 1 South to part 660, reorganizations). LEFG and OA trip following incidentally-caught stocks are subpart D, in the regulatory text of this limits are specified in Table 2 (North), managed with trip limits: Minor proposed rule. Changes to trip limits Table 2 (South) to subpart E for LEFG Nearshore Rockfish north and south, would be considered a routine measure and in Table 3 (North) and Table 3 black rockfish, cabezon (46°16′ to 40°10′ under § 660.60(c), and may be (South) to subpart F for OA in the N lat. and south of 40°10′ N lat.), spiny implemented or adjusted, if determined regulatory text of this proposed rule. dogfish, shortbelly rockfish, big skate, necessary, through inseason action. Pacific whiting, and the Other Fish Sablefish Trip Limits complex. For all these stocks except big F. LEFG and OA Nontrawl Fishery skate, this rule proposes maintaining the Management measures for the LEFG Sablefish are managed separately same IFQ fishery trip limits for these and OA nontrawl fisheries tend to be north and south of 36° N lat. For the stocks for the start of the 2021–22 similar because the majority of portion of the stock north of 36° N lat., biennium as those in place in 2019. For participants in both fisheries use hook- the Council recommended and NMFS is big skate, the Council proposes an and-line gear. Management measures, proposing higher trip limits for the unlimited trip limit to start the 2021 including area restrictions (e.g., LEFG and OA fisheries in 2021. For the fishing year. Additionally, the Council nontrawl RCA) and trip limits in these portion south of 36° N lat., the Council is recommending and NMFS is nontrawl fisheries, are generally recommended removing the daily trip proposing a trip limit for blackgill designed to allow harvest of target limit for the OA fishery but maintaining rockfish within the southern slope stocks while keeping catch of overfished the same weekly and bimonthly trip rockfish complex. The trip limit would stocks low. For the 2021–22 biennium, limits as were in place in the start of be unlimited to start the 2021 fishing the Council considered increasing trip 2019. The proposed sablefish trip limits year. The purpose of the blackgill trip limits for almost all LEFG and OA for 2021–22 are shown in Table 17.

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LEFG and OA Trip Limits north of 40°10′ N lat. See Section 4.5.6.1 lbs (227 kg) and removing the ratio for of the Analysis for more information on yellowtail to salmon. The Council recommended, and this change. NMFS is proposing higher trip limits for Removal of Other Flatfish Gear LEFG and OA fisheries in 2021, Primary Sablefish Tier Limits Restriction Off California including trip limits for shortspine thornyhead, longspine thornyhead, Some limited entry fixed gear permits Currently, Federal regulations in widow rockfish, shelf rockfish, are endorsed to receive annual sablefish Table 2 (South) to Part 660, Subpart E shortbelly rockfish, canary rockfish, quota, or tier limits. Vessels registered and Table 3 (South) to Part 660, Subpart Pacific ocean perch, yellowtail rockfish, with one, two, or up to three of these F include a gear restriction for vessels slope rockfish, darkblotched rockfish, permits may participate in the primary targeting stocks in the Other Flatfish ° Lingcod, nearshore rockfish, black sablefish fishery. The proposed tier complex south of 42 N lat. while inside rockfish, Other Flatfish, bocaccio south limits are as follows: In 2021, Tier 1 at the boundaries of the nontrawl RCA. of 40°10′ N lat., and chilipepper rockfish 58,649 lb (26,602 kg), Tier 2 at 26,659 The gear restriction limits the number of (Agenda Item G.6.a., Supplemental GMT lb (12,092 kg), and Tier 3 at 15,234 lb hooks per line, size of the hooks, and Report 2, April 2020). These increases (6,910 kg). For 2022, Tier 1 at 55,858 lb the number and size of the weights. in trip limits are meant to help members (25,337 kg), Tier 2 at 25,390 lb (11,517 Other flatfish include butter sole, curlfin of industry harvest more fish while still kg), and Tier 3 at 14,509 lb (6,581 kg). sole, Pacific sanddab, rex sole, rock sole, keeping total mortality within the ACLs and sand sole, as defined in 50 CFR Yellowtail Trip Limit for the Salmon 660.11. This management measure was for these stocks and stock complexes. Troll Fishery North of 40°10′ N lat. Further information on these trip limits originally implemented in 2003 to can be found in Section 4.3.5.1 of the During public comment at the protect bocaccio, which was overfished Analysis. November 2019 Council meeting, there at that time and was thought to provide As part of the Council’s recommended was a request to increase the yellowtail protections to other overfished trip limits for the LEFG and OA rockfish ratio and monthly limits in the groundfish stocks in following years fisheries, the Council established an OA salmon troll fishery north of 40°10′ N (e.g., Petrale sole) while still allowing an trip limit for shortspine and longspine lat. The current ratio and limit are 1lb artisanal sanddab fishery off California. thornyheads in the area between 40°10′ (0.45 kg) of yelloweye rockfish for every However, it was determined in N lat. and 34°27′ N lat. As part of the 2 lb (0.9 kg) of salmon landed, with a subsequent cycles that it was not Council’s action during the 2019–20 200 lb (91 kg) monthly limit. As part of effective at preventing bycatch of biennium, the Council recommended the 2017–18 biennial cycle, yellowtail overfished species. During the 2009–10 and NMFS implemented, trip limits for rockfish was removed from the OA harvest specifications cycle, this OA fisheries for shortspine and multi-stock trip limit, and a new restriction was removed from longspine thornyheads north of 40°10′ separate trip limit of 500 lb (227 kg) per regulations for the recreational fishery N. lat. and south of 34°27′ N lat., but month was recommended by the but was kept for the commercial fishery. inadvertently omitted the trip limit for Council and implemented by NMFS; Since this measure was first the area between 40°10′ N lat. and however, the salmon troll yellowtail implemented the stocks it was intended 34°27′ N lat., leaving this area closed. rockfish trip limit did not reflect this to protect have all been rebuilt while the The Council is recommending, and change. Agenda Item G.6., Attachment 3 Other Flatfish complex continues to be NMFS is proposing, implementing a 50 (April 2019) contains a detailed analysis under-attained. Therefore, to provide lb (22.7 kg) per month limit for OA of the salmon troll trip limits considered more opportunity to target stocks in the fisheries targeting shortspine and by the Council. After consideration of Other Flatfish complex, the Council longspine thornyheads in the area the detailed analysis, the Council recommended and NMFS is proposing between 40°10′ N lat. and 34°27′ N lat. recommended and NMFS is proposing removing the gear restrictions for the This is the same trip limit currently increasing the yellowtail rockfish limit LEFG and OA fisheries targeting stocks proposed for OA fisheries targeting in the salmon troll fishery north of in the Other Flatfish complex inside the shortspine and longspine thornyheads 40°10′ N lat. from 200 lbs (91 kg) to 500 RCA south of 42° N lat.

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Nontrawl RCA Adjustments assessment of the impacts of these North-South Management Areas, as a Increasing the LEFG and OA trip openings. Nontrawl RCA closures can commonly used geographic coordinate. be found in the LEFG and OA trip limits limits, as proposed in Section III, F., H. Recreational Fisheries LEFG and OA Fishery, of this proposed in Table 2 (North), Table 2 (South) to rule is one way to help increase subpart E for LEFG and in Table 3 This section describes the recreational attainment of many currently under- (North) and Table 3 (South) to subpart fisheries management measures attained species. However, as has been F for OA in the proposed regulatory text proposed for 2021–22. The Council discussed under public comment at of this proposed rule. primarily recommends depth Council meetings during development As provided in the Analysis, the restrictions and groundfish conservation of this action, increasing trip limits purpose of opening these areas is to areas to constrain catch within the without providing access to the areas provide LEFG and OA fisheries access recreational harvest guidelines for each to areas where they can catch abundant where those fish can be found does little stock. Washington, Oregon, and target stocks, such as bocaccio, canary to help with attainments. Therefore, as California each proposed, and the rockfish, yellowtail rockfish, and widow part of the 2021–22 biennium, the Council recommended, different rockfish. All of these stocks have been Council recommended and NMFS is combinations of seasons, bag limits, area underutilized by the LEFG and OA proposing the following changes to the closures, and size limits for stocks fisheries since they were rebuilt due to Nontrawl RCA off Oregon and targeted in recreational fisheries. These limited access to the areas where they Washington: measures are designed to limit catch of • ° ′ ° ′ can be found. Opening these areas of the Between 40 10 N lat. and 46 16 N overfished stocks found in the waters nontrawl RCA, many of which are lat. (the Oregon-Washington border): adjacent to each state while allowing currently already open to other types of Open the area between the 30- and 40- target fishing opportunities in their fishing (i.e., trawl or recreational fishing fm management lines to hook-and-line particular recreational fisheries. The with hook and line gear), along with the gear except bottom longline and following sections describe the increased LEFG and OA trip limits for dinglebar, as defined in the ‘‘general recreational management measures many of these stocks and stock definitions’’ section of the Federal proposed in each state. regulations at 50 CFR 660.11; complexes will likely result in greater • Between 38°57.5′ N lat. and 34°27′ attainment of the nontrawl allocations Washington N lat., (Point Arena to Point and therefore the ACLs without Conception): Open the area between 40 increasing the risks of exceeding these The state of Washington manages its fm and 50 fm; and limits. marine fisheries in four areas: Marine • South of 34°27′ N lat.: Open the New Management Line at 38°57.5′ N Area 1 extends from the Oregon/ area between 75 fm and 100 fm. lat. Washington border to Leadbetter Point; These proposals, along with the In order to make some of the proposed Marine Area 2 extends from Leadbetter proposed changes to recreational changes to the Nontrawl RCA, the Point to the mouth of the Queets Rivers; conservation areas (discussed in Section Council also recommended and NMFS Marine Area 3 extends from the Queets III, H., Recreational Fisheries) will is proposing creating a new River to Cape Alava; and Marine Area provide much needed access to these management line at 38°57.5′ N lat., 4 extends from Cape Alava to the Sekiu areas for the LEFG and OA fisheries to which is Point Arena, California. Point River. This proposed rule would adopt better attain their trip limits. Section Arena is already defined in Federal the following season structure in Table 4.7.2 of the Analysis provides a detailed regulations under the definition for 18.

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The aggregate groundfish bag limits in target and non-target species expected prohibition would allow anglers already waters adjacent to Washington would from allowing recreational hook-and- participating in one or the other continue to be nine fish in all areas with line fishing in these areas would be fisheries to have additional opportunity a sub-bag limit for cabezon (one per minimal because the areas to be opened while offshore. As ODFW’s analysis to day), rockfish (seven per day), and are very small, particularly in the Council shows (Agenda Item F.1.a, lingcod (two per day). The flatfish limit comparison to the overall area used by June 2020), over the past 2 years that the would increase from three fish to five Washington recreational fisheries longleader gear fishery has been allowed fish, and is not counted towards the (Agenda Item F.1.a, Supplemental to operate, the average encounter rates groundfish bag limit of nine but is in WDFW Report 1, June 2020). of yelloweye rockfish, Chinook salmon, addition to it. The Council Oregon and Coho salmon has been extremely recommended these season and bag low at around 0.02, 0.6, and 6 fish per limit changes, which allow more access The Council proposed that Oregon angler, respectively. When added to the to target stocks with fewer restrictions. recreational fisheries in 2021–22 would encounters from the traditional Consistent with the 2019–20 operate under an all months all depths bottomfish fishery, the total annual biennium, the Council recommended season structure to start the 2021 fishing encounters would not be much different and NMFS is proposing to continue to year. The Council proposed maintaining than the recent years’ total estimates, prohibit recreational fishing for the 2019–20 aggregate bag limits and and should not increase the potential for groundfish and Pacific halibut inside size limits in Oregon recreational the total groundfish salmon thresholds the North Coast Recreational Yelloweye fisheries for 2021–22. The proposed to be reached or exceeded. Therefore the Rockfish Conservation Area (YRCA), a limits are: Three lingcod per day, with Council recommended and NMFS is C-shaped closed area off the northern a minimum size of 22 in (56 cm); 25 proposing removing the prohibition on Washington coast. However, the Council flatfish per day, excluding Pacific combining Oregon longleader trips with recommended and NMFS is proposing halibut; and a marine fish aggregate bag all depths halibut trips. opening the South Coast Recreational limit of 10 fish per day, where cabezon YRCA and the Westport Offshore YRCA have a minimum size of 16 in (41 cm). California to recreational fishing for the 2021–22 The ODFW also requested that the biennium. Coordinates for YRCAs are Council consider allowing longleader The Council manages recreational defined at § 660.70. gear fishing and ‘‘all-depth’’ Pacific fisheries in waters adjacent to California Opening the South Coast Recreational halibut fishing on the same trip, which in five separate management areas. YRCA and the Westport Offshore YRCA had been requested by Oregon anglers Season and area closures differ between would provide additional access to during discussion of the 2019 Pacific California management areas to limit healthy underutilized stocks. Originally halibut Catch Sharing Plan process. incidental catch of overfished stocks closed to recreational fishing in 2007 to Currently, combining the two trip types while providing as much recreational protect canary rockfish and yelloweye is prohibited; this prohibition was fishing opportunity as possible. The rockfish, these closures may no longer meant to limit interactions with Council’s proposed California season be needed since canary rockfish has yelloweye rockfish. structure includes additional time and been rebuilt and higher harvest Impacts to yelloweye rockfish or other depth opportunities, which are guidelines were implemented for species of concern (e.g., Chinook and supported by the proposed increase to yelloweye rockfish. As stated by the Coho salmon) are unlikely to increase the yelloweye rockfish ACL described in Washington Department of Fish and significantly under this proposed Section C. Table 19 shows the proposed Wildlife (WDFW) in their analysis for change as effort is not expected to season structure and depth limits by this proposal, the additional impacts to increase by much. Instead, removing the management area for 2021 and 2022.

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The Council recommended that size without non-trawl gear stowed (see non-trawl RCA off the California coast— limits would remain the same as for § 660.330(d)(12)(ii)); and (3) the specifically in areas with canyon edges 2020 for all stocks. However, the prohibition on retaining and landing and walls that have historically Council recommended and NMFS is groundfish harvested from inside the produced high volumes of chilipepper proposing to eliminate the sub-bag non-trawl RCA with non-trawl gear (see rockfish catch and at depths ranging limits for black rockfish, canary § 660.330(d)(12)(iii)). If approved, from 40 to 150 fathoms (73 to 274 m). rockfish, and cabezon, and establish a NMFS would authorize up to seven • Groundfish EFP Proposal— sub-bag limit for vermillion rockfish of vessels to target midwater rockfish California Department of Fish and five fish. inside the non-trawl RCA off the Wildlife 2021–2022 EFP: The California California coast—specifically between Department of Fish and Wildlife J. Exempted Fishing Permits 40° 10′ north latitude (N lat.) and Point (CDFW) submitted a new EFP This action is authorized by the Conception, California, at depths application to collect fishery-dependent PCGFMP and the regulations ranging from 35 to 150 fathoms (64 to biological data for cowcod for inclusion implementing the Magnuson-Stevens 274 meters (m)). in future stock assessments. The EFP Act at 50 CFR 600.745, which state that • Groundfish EFP Proposal— project would require an exemption EFPs may be used to authorize fishing Commercial Midwater Hook-and-Line from the prohibition to retain cowcod in activities that would otherwise be Rockfish Fishing in the RCA off the the California recreational fishery (see prohibited. Oregon Coast: Scott Cook, a private § 660.360(c)(3)). The EFP would also At its June 2020 meeting, the Council fisherman of Coos Bay, Oregon provide that any cowcod taken and recommended that NMFS approve five submitted a renewal application to retained would not count against the EFP applications for the 2021 fishing continue research that has been recreational bag limit for the aggregate year and preliminarily approve the EFP conducted since 2019. The purpose of of rockfish, cabezon, and greenlings. If applications for the 2022 fishing year. the EFP project is to test a modified, approved, NMFS would authorize up to The Council considered these EFP midwater trolled longline gear 20 vessels that participate in the applications concurrently with the configured to target underutilized, California recreational fishery to retain 2021–2022 biennial harvest midwater yellowtail, widow, and canary cowcod and transfer the cowcod to specifications and management process rockfish, while avoiding the rebuilding, CDFW groundfish staff upon landing. because expected catch under most EFP bottom-dwelling yelloweye rockfish. • Groundfish EFP Proposal— projects is included in the catch limits The EFP project would require Washington Department of Fish Wildlife for groundfish stocks. Three of the EFP exemptions from: (1) The prohibition to Enhanced Yelloweye Recreational applications are renewals, and request fish inside the non-trawl RCA with non- Fishery Biological Sampling EFP: The to test hook-and-line gear that trawl gear (see § 660.330(d)(12)(i)); (2) Washington Department of Fish and selectively targets underutilized, the prohibition on transiting through the Wildlife (WDFW) submitted a new EFP midwater rockfish species (e.g., non-trawl RCA without non-trawl gear application to collect fishery-dependent yellowtail rockfish) while avoiding stowed (see § 660.330(d)(12)(ii)); and (3) biological data for yelloweye rockfish overfished, bottom-dwelling rockfish the prohibition on retaining and landing for inclusion in future stock species (e.g., yelloweye rockfish). An groundfish harvested from inside the assessments. The EFP project would EFP is necessary for these activities non-trawl RCA with non-trawl gear (see require an exemption from the because they will all occur in the non- § 660.330(d)(12)(iii)). If approved, prohibition to retain yelloweye rockfish trawl RCA, which is closed to fishing NMFS would authorize up to five in the Washington recreational fishery with non-trawl fixed gear to protect vessels to target midwater rockfish (see § 660.360(c)(1)(ii)). The EFP would overfished groundfish stocks. The other inside the non-trawl RCA off the Oregon also provide that any yelloweye rockfish two EFP applications are new, and Coast—specifically in the rocky reef taken and retained would not count request to retain certain prohibited habitat at depths ranging from 30 to 100 against the recreational bag limit for species in order to collect fishery- fathoms (55 to 183 m). rockfish. If approved, NMFS would dependent data for potential use in • Groundfish EFP Proposal— authorize up to 10 vessels that upcoming stock assessments. A Monterey Bay Regional EFP Chilipepper participate in the Washington summary of each EFP application is Rockfish: Real Good Fish of Moss recreational fishery to retain yelloweye provided below: Landing, California submitted a renewal rockfish and transfer the yelloweye • Groundfish EFP Proposal— application to continue research that rockfish to WDFW staff upon landing. Yellowtail Rockfish Jig Fishing off has been conducted since 2019. The During the 2-year period of EFP California: The San Francisco purpose of the EFP project is to test a activities from 2021 to 2022, all vessels Community Fishing Association trolled hook-and-line gear configured to participating in the non-trawl RCA EFP (SFCFA) and private open access target underutilized, midwater projects (i.e., the renewal applications fisherman Daniel Platt submitted a chilipepper rockfish and avoid the submitted by the SFCFA, Scott Cook, renewal application for research that rebuilding, bottom-dwelling yelloweye and Real Good Fish) would adhere to has been conducted since 2013. The rockfish. The EFP project would require EFP set-asides for targeted and purpose of the EFP project is to exemptions from: (1) The prohibition to incidental groundfish and other species, continue testing the potential for a fish inside the non-trawl RCA with non- which were considered and approved commercial jig gear configured to target trawl gear (see § 660.330(d)(12)(i)); (2) by the Council at their June 2020 underutilized, midwater yellowtail and the prohibition on transiting through the meeting. These EFP set-asides are off- shelf rockfish species while avoiding non-trawl RCA without non-trawl gear the-top deductions from the 2021–2022 the rebuilding, bottom-dwelling stowed (see § 660.330(d)(12)(ii)); and (3) applicable ACLs, meaning any landings yelloweye rockfish. The EFP project the prohibition on retaining and landing and discards that occur under these would require exemptions from: (1) The groundfish harvested from inside the EFPs would be accounted for within the prohibition to fish inside the non-trawl non-trawl RCA with non-trawl gear (see applicable ACLs. These vessels are also RCA with non-trawl gear (see § 660.330(d)(12)(iii)). If approved, required to have 100 percent observer § 660.330(d)(12)(i)); (2) the prohibition NMFS would authorize up to 10 vessels coverage. All cowcod mortality under on transiting through the non-trawl RCA to target midwater rockfish inside the the CDFW EFP project is expected to

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occur in conjunction with routine Assistant Administrator has determined 10-year projections for routinely recreational fishing activities and will that this proposed rule is consistent adjusted harvest specifications and be calculated as part of the normal with the PCGFMP, other provisions of management measures. The 10-year recreational catch estimation process. the Magnuson-Stevens Act, and other projections were produced to evaluate All yelloweye rockfish taken under the applicable law, subject to further the impacts of the ongoing WDFW EFP project would be counted consideration after public comment. In implementation of harvest against the Washington recreational making its final determination, NMFS specifications and management harvest guideline for yelloweye will take into account the complete measures and to evaluate the impacts of rockfish. NMFS would not require 100 record, including the data, views, and the routine adjustments that are the percent observer coverage for vessels comments received during the comment main component of each biennial cycle. participating in the CDFW and WDFW period. Therefore, the EA for the 2021–22 cycle EFP projects because recreational Pursuant to Executive Order 13175, tiers from the 2015–16 EIS and focuses vessels do not meet the minimum size this proposed rule was developed after on the harvest specifications and requirements under Federal regulations meaningful consultation and management measures that were not to carry an observer. collaboration with tribal officials from within the scope of the 10-year NMFS does not expect any impacts to the area covered by the PCGFMP. Under projections in the 2015–16 EIS. A copy the environment, essential fish habitat, the Magnuson-Stevens Act at 16 U.S.C. of the EA is available from NMFS (see or protected or prohibited species from 1852(b)(5), one of the voting members of ADDRESSES). This action also announces these EFPs beyond those analyzed for the Pacific Council must be a a public comment period on the EA. representative of an Indian tribe with the groundfish fishery as a whole in The Chief Counsel for Regulation of 34 federally recognized fishing rights from applicable biological opinions or the the Department of Commerce certified the area of the Council’s jurisdiction. In draft Environmental Assessment (EA) to the Chief Counsel for Advocacy of the addition, regulations implementing the for the Pacific Coast Groundfish Fishery Small Business Administration that this PCGFMP establish a procedure by 2021–2022 Harvest Specifications and proposed rule, if adopted, would not 5 which the tribes with treaty fishing Management Measures. have a significant economic impact on rights in the area covered by the After publication of this document in a substantial number of small entities. PCGFMP request new allocations or the Federal Register, NMFS may The purpose of this proposed rule is to approve and issue permits for the regulations specific to the tribes, in writing, before the first of the two conserve Pacific Coast groundfish stocks proposed EFP projects for the 2021 by preventing overfishing, while still fishing year after the close of the public meetings at which the Council considers groundfish management measures. The allowing harvest opportunity among the comment period. All five EFP various fishery sectors. This will be applications are available under regulations at 50 CFR 660.324(d) further direct NMFS to develop tribal accomplished by implementing the ‘‘Supporting and Related Materials’’ (see 2021–2022 annual specifications in the ADDRESSES). NMFS will consider allocations and regulations in consultation with the affected tribes. U.S. exclusive economic zone off the comments submitted in deciding West Coast. The harvest specifications whether to approve the applications as The tribal management measures in this proposed rule have been developed affect large and small entities similarly, requested. NMFS may approve the and for this biennium, many of the applications in their entirety or may following these procedures. The tribal representative on the Council made a catch limits are proposed to increase, make any alterations needed to achieve providing benefit to all participants. the goals of the EFP projects. NMFS motion to adopt the non-whiting tribal management measures, which was Additionally, this proposed rule would not issue another Federal contains several of new management Register notice soliciting public passed by the Council. Those management measures, which were measures that are likely to benefit comment on renewing these EFP vessels, specifically openings of projects for 2022 unless: (1) The developed and proposed by the tribes, are included in this proposed rule. previously closed fishing grounds. As a applicants modify and resubmit their result, an initial regulatory flexibility applications to NMFS; (2) changes to This proposed rule has been determined to be not significant for analysis is not required and none has relevant fisheries regulations warrant a been prepared. revised set of exemptions authorized purposes of Executive Order 12866. This proposed rule is not an Executive under the EFP projects; or (3) NMFS’ List of Subjects in 50 CFR Part 660 Order 13771 regulatory action because understanding of the current biological this rule is not significant under Fisheries, Fishing, Reporting and and economic impacts from EFP fishing Executive Order 12866. recordkeeping requirements. activities substantially changes. NMFS prepared an integrated Dated: September 28, 2020. Analysis for this action, which IV. Classification Samuel D. Rauch III, Pursuant to section 304(b)(1)(A) of the addresses the statutory requirements of the Magnuson-Stevens Act, the National Deputy Assistant Administrator for Magnuson-Stevens Act, the NMFS Regulatory Programs, National Marine Environmental Policy Act, Presidential Fisheries Service. 3 Available at: http:// Executive Order 12866, and the www.westcoast.fisheries.noaa.gov/publications/ Regulatory Flexibility Act. The full suite For the reasons set out in the fishery_management/groundfish/s7-groundfish- of alternatives analyzed by the Council preamble, 50 CFR part 660 is proposed biop-121117.pdf. can be found on the Council’s website to be amended as follows: 4 Available at: http://www.pcouncil.org/wp- at www.pcouncil.org. This Analysis does content/uploads/2017/10/F7_Att1_USFWS_2017_ _ not contain all the alternatives, because PART 660—FISHERIES OFF WEST STALBiOp NOV2017BB.pdf. COAST STATES 5 Draft available at: https://www.pcouncil.org/ an EIS was prepared for the 2015–16 documents/2020/05/f-1-attachment-8-pacific-coast- biennial harvest specifications and groundfish-fishery-2021-2022-harvest- management measures and is available ■ 1. The authority citation for part 660 specifications-and-management-measures- ADDRESSES continues to read as follows: analytical-document-organized-as-a-draft- from NMFS (see ). This EIS environmental-assessment-chapters-1-5- examined the harvest specifications and Authority: 16 U.S.C. 1801 et seq., 16 electroni.pdf/. management measures for 2015–16 and U.S.C. 773 et seq., and 16 U.S.C. 7001 et seq.

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■ 2. In § 660.11, amend the definition of ■ f. Redesignate paragraphs (d) through (10) 33°18.14′ N lat., 118°27.94′ W ‘‘North-South management area’’ by (l) as paragraphs (e) through (m); and long.; revising paragraph (2)(xviii) to read as ■ g. Add new paragraph (d). (11) 33°19.84′ N lat., 118°32.22′ W follows: The revisions and additions read as long.; follows: (12) 33°20.81′ N lat., 118°32.91′ W § 660.11 General definitions. long.; § 660.73 Latitude/longitude coordinates * * * * * (13) 33°21.94′ N lat., 118°32.03′ W North-South management area *** defining the 100 fm (183 m) through 150 fm (274 m) depth contours. long.; (2) * * * (14) 33°23.14′ N lat., 118°30.12′ W (xviii) Point Arena, CA—management * * * * * long.; line—38°57.50′ N lat. (a) * * * (309) 33°2.81′ N lat., 117°21.17′ W * * * * * * * * * * (d) The 100 fm (183 m) depth contour ■ 3. In § 660.40, revise the section long.; around the northern Channel Islands off heading, removing paragraph (a), (310) 33°1.76′ N lat., 117°20.51′ W the state of California is defined by redesignating paragraph (b) as paragraph long.; ° ′ ° ′ straight lines connecting all of the (a), and add a reserved paragraph (b) to (311) 32 59.90 N lat., 117 19.38 W long.; following points in the order stated: read as follows: ° ′ ° ′ (312) 32°57.29′ N lat., 117°18.94′ W (1) 34 12.89 N lat., 120 29.31 W § 660.40 Rebuilding plans. long.; long.; ° ′ ° ′ * * * * * (313) 32°56.15′ N lat., 117°19.54′ W (2) 34 10.96 N lat., 120 25.19 W ■ 4. In § 660.50, revise paragraphs long.; long.; ° ′ ° ′ (f)(2)(ii) and (f)(6) to read as follows: (314) 32°55.30′ N lat., 117°19.38′ W (3) 34 08.74 N lat., 120 18.00 W long.; long.; ° ′ ° ′ § 660.50 Pacific Coast treaty Indian (315) 32°54.27′ N lat., 117°17.17′ W (4) 34 07.02 N lat., 120 10.45 W fisheries. long.; long.; * * * * * (316) 32°52.94′ N lat., 117°17.11′ W (5) 34°06.75′ N lat., 120°05.09′ W (f) * * * long.; long.; (2) * * * (317) 32°52.66′ N lat., 117°19.67′ W (6) 34°08.15′ N lat., 119°54.96′ W (ii) The Tribal allocation is 689.2 mt long.; long.; in 2021 and 656.6 mt in 2022 per year. (318) 32°50.95′ N lat., 117°21.17′ W (7) 34°′07.17 N lat., 119°48.54′ W This allocation is, for each year, 10 long.; long.; percent of the Monterey through (319) 32°47.11′ N lat., 117°22.98′ W (8) 34°05.66′ N lat., 119°37.58′ W Vancouver area (North of 36° N lat.) long.; long.; ACL. The Tribal allocation is reduced (320) 32°45.60′ N lat., 117°22.64′ W (9) 34°04.76′ N lat., 119°26.28′ W by 1.7 percent for estimated discard long.; and long.; mortality. (321) 32°42.79′ N lat., 117°21.16′ W (10) 34°02.93′ N lat., 119°18.06′ W * * * * * long. long.; (6) Petrale sole. For petrale sole, treaty (b) * * * (11) 34°00.97′ N lat., 119°18.78′ W fishing vessels are restricted to a (1) 33°04.80′ N lat., 118°37.90′ W long.; fleetwide harvest target of 350 mt each long.; (12) 33°59.38′ N lat., 119°21.71′ W year. (2) 33°02.65′ N lat., 118°34.08′ W long.; * * * * * long.; (13) 33°58.62′ N lat., 119°32.05′ W ■ 5. Amend § 660.71 as follows: (3) 32°55.80′ N lat., 118°28.92′ W long.; ■ a. Redesignate paragraphs (o)(133) long.; (14) 33°57.69′ N lat., 119°33.38′ W through (216) as paragraphs (o)(135) (4) 32°55.04′ N lat., 118°27.68′ W long.; through (218); and long.; (15) 33°57.40′ N lat., 119°35.84′ W ■ b. Add new paragraphs (o)(133) and (5) 32°49.79′ N lat., 118°20.87′ W long.; (134). long.; (16) 33°56.07′ N lat., 119°41.10′ W The additions read as follows: (6) 32°48.05′ N lat., 118°19.62′ W long. ° ′ ° ′ § 660.71 Latitude/longitude coordinates long.; (17) 33 55.54 N lat., 119 47.99 W defining the 10-fm (18-m) through 40-fm (73- (7) 32°47.41′ N lat., 118°21.86′ W long.; m) depth contours. long.; (18) 33°56.60′ N lat., 119°51.40′ W (8) 32°44.03′ N lat., 118°24.70′ W long.; * * * * * ° ′ ° ′ (o) * * * long.; (19) 33 55.56 N lat., 119 53.87 W (133) 37°25.00′ N lat., 122°38.66′ W (9) 32°47.81′ N lat., 118°30.20′ W long.; ° ′ ° ′ long.; long.; (20) 33 54.40 N lat., 119 53.74 W (134) 37°20.68′ N lat., 122°36.79′ W (10) 32°49.79′ N lat., 118°32.00′ W long.; long.; long.; (21) 33°52.72′ N lat., 119°54.62′ W (11) 32°53.36′ N lat., 118°33.23′ W long.; * * * * * ° ′ ° ′ ■ 6. Amend § 660.73 as follows: long.; (22) 33 47.95 N lat., 119 53.50 W ■ a. Revise paragraphs (a)(309) through (12) 32°55.13′ N lat., 118°35.31′ W long.; ° ′ ° ′ (315); long.; (23) 33 45.75 N lat., 119 51.04 W ■ b. Add paragraphs (a)(316) through (13) 33°00.22′ N lat., 118°38.68′ W long.; (321); long.; (24) 33°40.18′ N lat., 119°50.36′ W ■ c. Revise paragraphs (b)(1) through (14) 33°03.13′ N lat., 118°39.59′ W long.; (14); long.; and (25) 33°38.19′ N lat., 119°57.85′ W ■ d. Add paragraph (b)(15); (15) 33°04.80′ N lat., 118°37.90′ W long.; ■ e. Revise paragraphs (c)(10) through long. (26) 33°44.92′ N lat., 120°02.95′ W (14); (c) * * * long.;

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(27) 33°48.90′ N lat., 120°05.34′ W (30) 34°03.23′ N lat., 120°34.34′ W (32) 34°12.89′ N lat., 120°29.31′ W long.; long.; long. ° ′ ° ′ (28) 33 51.64 N lat., 120 08.11 W (31) 34°09.42′ N lat., 120°37.64′ W * * * * * long.; (29) 33°58.31′ N lat., 120°27.99′ W long.; and ■ 7. Tables 1a through 1c to subpart C long.; are revised to read as follows:

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■ 6. Tables 2a through 2c to subpart C are revised to read as follows:

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■ 7. In § 660.140, revise paragraphs § 660.140 Shorebased IFQ Program. (d) * * * (d)(1)(ii)(D) to read as follows: * * * * * (1) * * *

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(ii) * * * trawl fishery, NMFS will issue QP based on the following shorebased trawl (D) Pacific whiting and non-whiting allocations: QP shorebased trawl allocations. For the

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* * * * * ■ 8. Revise Tables 1 (North) and 1 (South) to subpart D to read as follows:

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■ 9. In § 660.231, revise paragraph registered for use with that vessel. to the total of all cumulative limits (b)(3)(i) to read as follows: During the primary season, each vessel announced in this paragraph for the authorized to fish in that season under tiers for those permits, except as limited § 660.231 Limited entry fixed gear sablefish primary fishery. paragraph (a) of this section may take, by paragraph (b)(3)(ii) of this section. retain, possess, and land sablefish, up to Up to 3 permits may be registered for * * * * * the cumulative limits for each of the use with a single vessel during the (b) * * * permits registered for use with that primary season; thus, a single vessel (3) * * * vessel (i.e., stacked permits). If multiple may not take and retain, possess or land (i) A vessel participating in the limited entry permits with sablefish more than 3 primary season sablefish primary season will be constrained by the sablefish cumulative limit endorsements are registered for use with cumulative limits in any one year. A associated with each of the permits a single vessel, that vessel may land up vessel registered for use with multiple

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limited entry permits is subject to per effect: Tier 1 at 58,649 lb (26,602 kg), Tier 2 at 25,390 lb (11,517 kg), and Tier vessel limits for species other than Tier 2 at 26,659 lb (12,092 kg), and Tier 3 at 14,509 lb (6,581 kg). sablefish, and to per vessel limits when 3 at 15,234 lb (6,910 kg). In 2022 and * * * * * participating in the daily trip limit beyond, the following annual limits are ■ 10. Revise Tables 2 (North) and 2 fishery for sablefish under § 660.232. In in effect: Tier 1 at 55,858 lb (25,337 kg), 2021, the following annual limits are in (South) to subpart E to read as follows:

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■ 11. Revise Tables 3 (North) and 3 (South) to subpart F to read as follows:

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■ 12. Amend § 660.360 by revising § 660.360 Recreational fishery— coast of Washington, the groundfish bag paragraphs (c)(1) introductory text, management measures. limit is 9 groundfish per day, including (c)(1)(i)(B), (C), and (D), (c)(2)(i)(B) and * * * * * rockfish, cabezon and lingcod. Within (D), (c)(3)(i)(A), and (c)(3)(ii)(B) to read (c) * * * the groundfish bag limit, there are sub- as follows: (1) Washington. For each person limits for rockfish, lingcod, and cabezon engaged in recreational fishing off the

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outlined in paragraph (c)(1)(i)(D) of this fishing for groundfish and halibut is possess, or land groundfish taken with section. In addition to the groundfish allowed within the South Coast recreational gear within the recreational bag limit of 9, there will be a flatfish Recreational YRCA. The South Coast RCA unless otherwise stated. A vessel limit of 5 fish, not to be counted Recreational YRCA is defined by fishing in the recreational RCA may not towards the groundfish bag limit but in latitude and longitude coordinates be in possession of any groundfish addition to it. The recreational specified at § 660.70. unless otherwise stated. [For example, if groundfish fishery will open the second (C) Westport offshore recreational a vessel participates in the recreational Saturday in March through the third yelloweye rockfish conservation area. salmon fishery within the RCA, the Saturday in October for all species. In Recreational fishing for groundfish and vessel cannot be in possession of the Pacific halibut fisheries, retention of halibut is allowed within the Westport groundfish while in the RCA. The vessel groundfish is governed in part by Offshore Recreational YRCA. The may, however, on the same trip fish for annual management measures for Westport Offshore Recreational YRCA is and retain groundfish shoreward of the Pacific halibut fisheries, which are defined by latitude and longitude RCA on the return trip to port.] published in the Federal Register. The coordinates specified at § 660.70. Coordinates approximating boundary following seasons, closed areas, sub- (D) Recreational rockfish conservation lines at the 10- fm (18 m) through 40- limits and size limits apply: area. Fishing for groundfish with fm (73-m) depth contours can be found (i) * * * recreational gear is prohibited within at § 660.71. The Washington (B) South coast recreational yelloweye the recreational RCA unless otherwise recreational fishing season structure is rockfish conservation area. Recreational stated. It is unlawful to take and retain, as follows:

* * * * * vessel fishing in the recreational RCA fm (18 m) through 40-fm (73-m) depth (2) * * * may not be in possession of any contours can be found at § 660.71. (i) * * * groundfish. [For example, if a vessel * * * * * (B) Recreational rockfish conservation fishes in the recreational salmon fishery (D) In the Pacific halibut fisheries. area (RCA). Fishing for groundfish with within the RCA, the vessel cannot be in Retention of groundfish is governed in recreational gear is prohibited within possession of groundfish while within part by annual management measures the recreational RCA, a type of closed the RCA. The vessel may, however, on for Pacific halibut fisheries, which are area or groundfish conservation area, the same trip fish for and retain published in the Federal Register. except with long-leader gear (as defined groundfish shoreward of the RCA on the Between the Columbia River and at § 660.351). It is unlawful to take and return trip to port.] Off Oregon, from Humbug Mountain, during days open to retain, possess, or land groundfish taken January 1 through December 31, the ‘‘all-depth’’ sport halibut fisheries, with recreational gear within the recreational fishing for groundfish is when Pacific halibut are onboard the recreational RCA, except with long- allowed in all depths. Coordinates vessel, no groundfish, except sablefish, leader gear (as defined at § 660.351). A approximating boundary lines at the 10- Pacific cod, and other species of flatfish

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(sole, flounder, sanddab), may be taken the recreational RCA, except that may, however, on the same trip fish for and retained, possessed or landed, recreational fishing for species in the and retain rockfish shoreward of the except with long-leader gear (as defined Other Flatfish complex, petrale sole, RCA on the return trip to port. If the at § 660.351). ‘‘All-depth’’ season days and starry flounder is permitted within season is closed for a species or species are established in the annual the recreational RCA as specified in group, fishing for that species or species management measures for Pacific paragraph (c)(3)(iv) of this section. It is group is prohibited both within the halibut fisheries, which are published in unlawful to take and retain, possess, or recreational RCA and shoreward of the the Federal Register and are announced land groundfish taken with recreational recreational RCA, unless otherwise on the NMFS Pacific halibut hotline, 1– gear within the recreational RCA, unless authorized in this section. Coordinates otherwise authorized in this section. A 800–662–9825. approximating boundary lines at the 10- vessel fishing in the recreational RCA * * * * * fm (18 m) through 40-fm (73-m) depth may not be in possession of any species (3) * * * contours can be found at § 660.71. The (i) * * * prohibited by the restrictions that apply (A) Recreational rockfish conservation within the recreational RCA. For California recreational fishing season areas. The recreational RCAs are areas example, if a vessel fishes in the structure and RCA depth boundaries by that are closed to recreational fishing for recreational salmon fishery within the management area and month are as groundfish. Fishing for groundfish with RCA, the vessel cannot be in possession follows: recreational gear is prohibited within of rockfish while in the RCA. The vessel

* * * * * Complex fish per day coastwide, with a authorized by a valid permit issued by (ii) * * * sub-bag limit of 5 fish for vermilion California and must not exceed the daily (B) Bag limits, hook limits. In times rockfish. This sub-bag limit counts limit multiplied by the number of days and areas when the recreational season towards the bag limit for the RCG in the fishing trip. for the RCG Complex is open, there is Complex and is not in addition to that * * * * * a limit of 2 hooks and 1 line when limit. Retention of yelloweye rockfish, [FR Doc. 2020–21783 Filed 10–1–20; 8:45 am] fishing for the RCG complex and bronzespotted rockfish, and cowcod is BILLING CODE 3510–22–P lingcod. The bag limit is 10 RCG prohibited. Multi-day limits are

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Register but may be ordered Act (Oct. 1, 2020; 134 Stat. listserv.gsa.gov/cgi-bin/ in ‘‘slip law’’ (individual 709) wa.exe?SUBED1=PUBLAWS- LIST OF PUBLIC LAWS pamphlet) form from the Last List , 2020 L&A=1 Superintendent of Documents, This is a continuing list of U.S. Government Publishing public bills from the current Office, Washington, DC 20402 Note: This service is strictly session of Congress which (phone, 202–512–1808). The Public Laws Electronic for email notification of new have become Federal laws. text will also be made Notification Service laws. The text of laws is not This list is also available available at https:// (PENS) available through this service. online at https:// www.govinfo.gov. Some laws PENS cannot respond to www.archives.gov/federal- may not yet be available. specific inquiries sent to this register/laws. PENS is a free email H.R. 8337/P.L. 116–159 notification service of newly address. The text of laws is not Continuing Appropriations Act, enacted public laws. To published in the Federal 2021 and Other Extensions subscribe, go to https://

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